Document:

exv4w1

Exhibit 4.1

EXECUTION COPY

 

 

CONEXANT SYSTEMS, INC.

AND

THE BANK OF NEW YORK MELLON TRUST COMPANY, N.A.

AS TRUSTEE AND COLLATERAL TRUSTEE

11.25% Senior Secured Notes due 2015

 

INDENTURE

Dated as of March 10, 2010

 

 

 

 

 

Table of Contents

Page

ARTICLE I

DEFINITIONS AND INCORPORATION BY REFERENCE

	 	 	 	 	 	 	 
	SECTION 1.1.	 	Definitions
	 	 	1	 
	SECTION 1.2.	 	Other Definitions
	 	 	40	 
	SECTION 1.3.	 	[Reserved]
	 	 	41	 
	SECTION 1.4.	 	Rules of Construction
	 	 	41	 

ARTICLE II

THE SECURITIES

	 	 	 	 	 	 	 
	SECTION 2.1.	 	Form, Dating and Terms
	 	 	42	 
	SECTION 2.2.	 	Execution and Authentication
	 	 	48	 
	SECTION 2.3.	 	Registrar and Paying Agent
	 	 	49	 
	SECTION 2.4.	 	Paying Agent to Hold Money in Trust
	 	 	49	 
	SECTION 2.5.	 	Holder Lists
	 	 	50	 
	SECTION 2.6.	 	Transfer and Exchange.
	 	 	50	 
	SECTION 2.7.	 	Form of Certificate to be Delivered in Connection with Transfers to IAIs
	 	 	53	 
	SECTION 2.8.	 	Form of Certificate to be Delivered in Connection with Transfers Pursuant to
Regulation S
	 	 	55	 
	SECTION 2.9.	 	Mutilated, Destroyed, Lost or Stolen Notes
	 	 	56	 
	SECTION 2.10.	 	Outstanding Notes
	 	 	57	 
	SECTION 2.11.	 	Temporary Notes
	 	 	58	 
	SECTION 2.12.	 	Cancellation
	 	 	58	 
	SECTION 2.13.	 	Payment of Interest; Defaulted Interest
	 	 	59	 
	SECTION 2.14.	 	Computation of Interest
	 	 	60	 
	SECTION 2.15.	 	CUSIP, Common Code and ISIN Numbers
	 	 	60	 

ARTICLE III

COVENANTS

	 	 	 	 	 	 	 
	SECTION 3.1.	 	Payment of Notes
	 	 	60	 
	SECTION 3.2.	 	Limitation on Indebtedness
	 	 	61	 
	SECTION 3.3.	 	Limitation on Restricted Payments
	 	 	65	 
	SECTION 3.4.	 	Limitation on Restrictions on Distributions from Restricted Subsidiaries
	 	 	70	 
	SECTION 3.5.	 	Limitation on Sales of Assets and Subsidiary Stock
	 	 	72	 
	SECTION 3.6.	 	Limitation on Liens
	 	 	78	 
	SECTION 3.7.	 	Limitation on Sale/Leaseback Transaction
	 	 	79	 
	SECTION 3.8.	 	Limitation on Affiliate Transactions
	 	 	79	 
	SECTION 3.9.	 	Limitation on Sale of Capital Stock of Restricted Subsidiaries
	 	 	81	 
	SECTION 3.10.	 	Limitation on Lines of Business
	 	 	81	 

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	SECTION 3.11.	 	Change of Control
	 	 	81	 
	SECTION 3.12.	 	SEC Reports
	 	 	83	 
	SECTION 3.13.	 	Future Subsidiary Guarantors
	 	 	84	 
	SECTION 3.14.	 	Maintenance of Office or Agency
	 	 	84	 
	SECTION 3.15.	 	Corporate Existence
	 	 	85	 
	SECTION 3.16.	 	Payment of Taxes and Other Claims
	 	 	85	 
	SECTION 3.17.	 	Payments for Consent
	 	 	85	 
	SECTION 3.18.	 	Compliance Certificate
	 	 	85	 
	SECTION 3.19.	 	Further Instruments and Acts
	 	 	85	 
	SECTION 3.20.	 	Statement by Officers as to Default
	 	 	86	 

ARTICLE IV

SUCCESSOR COMPANY

	 	 	 	 	 	 	 
	SECTION 4.1.	 	Merger and Consolidation
	 	 	86	 

ARTICLE V

REDEMPTION OF SECURITIES

	 	 	 	 	 	 	 
	SECTION 5.1.	 	Redemption
	 	 	88	 
	SECTION 5.2.	 	Applicability of Article
	 	 	88	 
	SECTION 5.3.	 	Election to Redeem; Notice to Trustee
	 	 	88	 
	SECTION 5.4.	 	Selection by Trustee of Notes to Be Redeemed
	 	 	89	 
	SECTION 5.5.	 	Notice of Redemption
	 	 	89	 
	SECTION 5.6.	 	Deposit of Redemption Price
	 	 	90	 
	SECTION 5.7.	 	Notes Payable on Redemption Date
	 	 	90	 
	SECTION 5.8.	 	Notes Redeemed in Part
	 	 	91	 

ARTICLE VI

DEFAULTS AND REMEDIES

	 	 	 	 	 	 	 
	SECTION 6.1.	 	Events of Default
	 	 	91	 
	SECTION 6.2.	 	Acceleration
	 	 	92	 
	SECTION 6.3.	 	Other Remedies
	 	 	93	 
	SECTION 6.4.	 	Waiver of Past Defaults
	 	 	94	 
	SECTION 6.5.	 	Control by Majority
	 	 	94	 
	SECTION 6.6.	 	Limitation on Suits
	 	 	94	 
	SECTION 6.7.	 	Rights of Holders to Receive Payment
	 	 	95	 
	SECTION 6.8.	 	Collection Suit by Trustee
	 	 	95	 
	SECTION 6.9.	 	Trustee May File Proofs of Claim
	 	 	95	 
	SECTION 6.10.	 	Priorities
	 	 	95	 
	SECTION 6.11.	 	Undertaking for Costs
	 	 	96	 

ARTICLE VII

TRUSTEE

	 	 	 	 	 	 	 
	SECTION 7.1.	 	Duties of Trustee
	 	 	96	 

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	SECTION 7.2.	 	Rights of Trustee
	 	 	97	 
	SECTION 7.3.	 	Individual Rights of Trustee
	 	 	99	 
	SECTION 7.4.	 	Trustee’s Disclaimer
	 	 	99	 
	SECTION 7.5.	 	Notice of Defaults
	 	 	99	 
	SECTION 7.6.	 	[Reserved]
	 	 	99	 
	SECTION 7.7.	 	Compensation and Indemnity
	 	 	100	 
	SECTION 7.8.	 	Replacement of Trustee
	 	 	101	 
	SECTION 7.9.	 	Successor Trustee by Merger
	 	 	102	 
	SECTION 7.10.	 	Eligibility; Disqualification
	 	 	102	 
	SECTION 7.11.	 	[Reserved]
	 	 	102	 
	SECTION 7.12.	 	Trustee’s Application for Instruction from the Company
	 	 	102	 
	SECTION 7.13.	 	Paying Agents
	 	 	102	 

ARTICLE VIII

DISCHARGE OF INDENTURE; DEFEASANCE

	 	 	 	 	 	 	 
	SECTION 8.1.	 	Discharge of Liability on Notes; Defeasance
	 	 	103	 
	SECTION 8.2.	 	Conditions to Defeasance
	 	 	105	 
	SECTION 8.3.	 	Application of Trust Money
	 	 	107	 
	SECTION 8.4.	 	Repayment to the Company
	 	 	107	 
	SECTION 8.5.	 	Indemnity for U.S. Government Obligations
	 	 	107	 
	SECTION 8.6.	 	Reinstatement
	 	 	107	 

ARTICLE IX

AMENDMENTS

	 	 	 	 	 	 	 
	SECTION 9.1.	 	Without Consent of Holders
	 	 	107	 
	SECTION 9.2.	 	With Consent of Holders
	 	 	109	 
	SECTION 9.3.	 	[Reserved]
	 	 	110	 
	SECTION 9.4.	 	Revocation and Effect of Consents and Waivers
	 	 	110	 
	SECTION 9.5.	 	Notation on or Exchange of Notes
	 	 	111	 
	SECTION 9.6.	 	Trustee to Sign Amendments
	 	 	111	 

ARTICLE X

SUBSIDIARY GUARANTEES

	 	 	 	 	 	 	 
	SECTION 10.1.	 	Subsidiary Guarantees
	 	 	111	 
	SECTION 10.2.	 	Limitation on Liability; Termination, Release and Discharge
	 	 	113	 
	SECTION 10.3.	 	Right of Contribution
	 	 	114	 
	SECTION 10.4.	 	No Subrogation
	 	 	114	 

ARTICLE XI

COLLATERAL AND SECURITY

	 	 	 	 	 	 	 
	SECTION 11.1.	 	Collateral
	 	 	114	 
	SECTION 11.2.	 	Further Assurances
	 	 	116	 
	SECTION 11.3.	 	After-Acquired Property
	 	 	116	 
	SECTION 11.4.	 	Impairment of Security Interest
	 	 	117	 

iii

 

	 	 	 	 	 	 	 
	SECTION 11.5.	 	Agreements Requiring Application of Proceeds of Collateral
	 	 	117	 
	SECTION 11.6.	 	Maintenance of Collateral
	 	 	117	 
	SECTION 11.7.	 	[RESERVED]
	 	 	117	 
	SECTION 11.8.	 	Release of Liens
	 	 	118	 
	SECTION 11.9.	 	Authorization of Actions to be Taken by the Collateral Trustee Under the
Security Documents
	 	 	119	 
	SECTION 11.10.	 	Collateral Account
	 	 	120	 

ARTICLE XII

MISCELLANEOUS

	 	 	 	 	 	 	 
	SECTION 12.1.	 	[Reserved]
	 	 	121	 
	SECTION 12.2.	 	Notices
	 	 	121	 
	SECTION 12.3.	 	Communication by Holders with other Holders
	 	 	122	 
	SECTION 12.4.	 	Certificate and Opinion as to Conditions Precedent
	 	 	122	 
	SECTION 12.5.	 	Statements Required in Certificate or Opinion
	 	 	122	 
	SECTION 12.6.	 	When Notes Disregarded
	 	 	123	 
	SECTION 12.7.	 	Rules by Trustee, Paying Agent and Registrar
	 	 	123	 
	SECTION 12.8.	 	Legal Holidays
	 	 	123	 
	SECTION 12.9.	 	GOVERNING LAW
	 	 	123	 
	SECTION 12.10.	 	No Recourse Against Others
	 	 	123	 
	SECTION 12.11.	 	Successors
	 	 	123	 
	SECTION 12.12.	 	Multiple Originals
	 	 	124	 
	SECTION 12.13.	 	[Reserved]
	 	 	124	 
	SECTION 12.14.	 	Table of Contents; Headings
	 	 	124	 
	SECTION 12.15.	 	Force Majeure
	 	 	124	 
	SECTION 12.16.	 	Waiver of Jury Trial
	 	 	124	 
	SECTION 12.17.	 	Severability
	 	 	124	 
	SECTION 12.18.	 	USA PATRIOT ACT
	 	 	124	 
	 
	SCHEDULE 3.4	 	Existing Encumbrances or Restrictions
	 	 	 	 

	 	 	 
	EXHIBIT A
	 	Form of the Notes

	EXHIBIT B
	 	Form of Indenture Supplement to Add Subsidiary Guarantors

iv

 

          INDENTURE dated as of March 10, 2010, among CONEXANT SYSTEMS, INC, a Delaware corporation (the
“Company”) and certain subsidiaries of the Company (the “Subsidiary Guarantors”)
from time to time parties hereto and THE BANK OF NEW YORK MELLON TRUST COMPANY, N.A., a national
banking association, as Trustee (in such capacity, the “Trustee”) and as Collateral Trustee
(in such capacity, “Collateral Trustee”).

          For and in consideration of the premises and the purchase of the Notes by the Holders thereof,
each party hereto covenants and agrees as follows for the benefit of the other parties and for the
equal and ratable benefit of all Holders of (i) the Company’s 11.25% Senior Secured Notes due 2015
issued on the date hereof (the “Initial Notes”) and (ii) if and when issued, an unlimited
principal amount of additional 11.25% Senior Secured Notes due 2015 (subject to Sections 3.2
and 3.6) that may be offered from time to time subsequent to the Issue Date (the “Additional
Notes,” and together with the Initial Notes, collectively, the “Notes”).

ARTICLE I

DEFINITIONS AND INCORPORATION BY REFERENCE

          SECTION 1.1. Definitions.

          “ABL Collateral” means:

          (1) any Receivables and Related Receivable Rights; and

          (2) on and after the date the Company and/or any Subsidiary Guarantor enters into any credit
facility secured by collateral that includes Inventory (among other collateral that may secure such
credit facility, if any) providing for a commitment to extend Revolving Credit Debt in an aggregate
principal amount of at least $5.0 million, any Inventory and Related Inventory Rights.

          “Acquired Indebtedness” means Indebtedness (1) of a Person or any of its Subsidiaries existing
at the time such Person becomes a Restricted Subsidiary or (2) assumed in connection with the
acquisition of assets from such Person, in each case whether or not Incurred by such Person in
connection with, or in anticipation or contemplation of, such Person becoming a Restricted
Subsidiary or such acquisition. Acquired Indebtedness will be deemed to have been Incurred, with
respect to clause (1) of the preceding sentence, on the date such Person becomes a Restricted
Subsidiary and, with respect to clause (2) of the preceding sentence, on the date of consummation
of such acquisition of assets.

          “Act of Required Debtholders” means, as to any matter at any time, a direction in writing
delivered to the Collateral Trustee by or with the written consent of the holders of more than 50%
of the sum of:

          (1) the aggregate outstanding principal amount of Shared Lien Debt (including the face amount
of outstanding letters of credit whether or not then available or drawn); and

          (2) other than in connection with the exercise of remedies, the aggregate unfunded commitments
to extend credit which, when funded, would constitute Shared Lien Debt;

 

 

provided, however, that after (1) the termination or expiration of all commitments to extend credit
that would, when funded, constitute Shared Lien Debt, (2) the payment in full in cash of the
principal of, and premium and interest, if any, on, all Shared Lien Debt (other than any undrawn
letters of credit), (3) the discharge or cash collateralization (at the lower of (a) 105% of the
aggregate undrawn amount or (b) the percentage of the aggregate undrawn amount required for release
of Liens under the terms of the applicable Shared Lien Document) of all outstanding letters of
credit constituting Shared Lien Debt, and (4) the payment in full in cash of all other Shared Lien
Obligations (other than any Shared Lien Obligations consisting of Banking Product Obligations,
Hedging Obligations and Contingent Liabilities), the term “Act of Required Debtholders” will mean
the holders of more than 50% of the sum of the aggregate “settlement amount” (or similar term, in
each case as defined in the applicable Hedge Agreement relating to Shared Lien Obligations
consisting of a Hedging Obligation) under all Hedge Agreements relating to Shared Lien Obligations
consisting of Hedging Obligations or, with respect to any such Hedge Agreement that has been
terminated in accordance with its terms, the amount then due and payable (including any termination
payments then due) under such Hedge Agreement; provided that the “settlement amount” (or similar
term) as of the last business day of the month preceding any date of determination will be
calculated by the appropriate swap counterparties and reported to the Collateral Trustee upon
request; provided further, that any Hedging Obligation with a “settlement amount” (or similar term)
that is a negative number will be disregarded for purposes of all calculations required by the term
“Act of the Required Debtholders.”

          For purposes of this definition, (1) Shared Lien Debt registered in the name of, or
beneficially owned by, the Company or any Affiliate of the Company will be deemed not to be
outstanding, and (2) votes will be determined in accordance with Section 8.2 of the Collateral
Trust Agreement.

          “Additional Assets” means:

	 	(1)	 	any property, plant, equipment or other asset (excluding current assets) to be
used by the Company or a Restricted Subsidiary in a Related Business;
	 
	 	(2)	 	the Capital Stock of a Person that becomes a Restricted Subsidiary as a result
of the acquisition of such Capital Stock by the Company or a Restricted Subsidiary;
	 
	 	(3)	 	Capital Stock constituting a minority interest in any Person that at such time
is a Restricted Subsidiary; or
	 
	 	(4)	 	Investments in the Notes; provided that any such Investment must be at a price
equal to or greater than 100% of the principal amount of the Notes plus accrued and
unpaid interest to the date of such Investment.

provided, however, that, in the case of clauses (2) and (3), such Restricted Subsidiary is
primarily engaged in a Related Business.

          “Additional Notes” has the meaning ascribed to it in the second introductory paragraph of this
Indenture.

2

 

          “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 Person means the power
to direct the management and policies of such Person, directly or indirectly, whether through the
ownership of voting securities, by contract or otherwise; and the terms “controlling” and
“controlled” have meanings correlative to the foregoing; provided that exclusively for purposes of
Section 3.8, beneficial ownership of 10% or more of the Voting Stock of a Person will be
deemed to be control. No Person (other than the Company or any Subsidiary of the Company) in whom a
Receivables Entity makes an Investment in connection with a Qualified Receivables Transaction will
be deemed to be an Affiliate of the Company or any of its Subsidiaries solely by reason of such
Investment.

          “Applicable Premium” means, with respect to any Note on any redemption date, the greater of:

	 	(1)	 	1% of the principal amount of the Note; or
	 
	 	(2)	 	the excess of:

                (a) the present value at such redemption date of (i) the redemption price of the Note at March
15, 2013, (such redemption price being set forth in the table appearing in Section 5 of the Notes),
plus (ii) all required interest payments due on the Note through March 15, 2013 (excluding accrued
but unpaid interest to the redemption date), computed using a discount rate equal to the Treasury
Rate as of such redemption date, plus 50 basis points; over

                (b) the principal amount of the Note.

          “Applicable Procedures” means, with respect to any transfer or exchange of or for beneficial
interests in any Global Note, the rules and procedures of the Depositary, Euroclear and Clearstream
that apply to such transfer or exchange.

          “Asset Disposition” means any direct or indirect sale, lease (other than an operating lease
entered into in the ordinary course of business), transfer, issuance or other disposition, or a
series of related sales, leases, transfers, issuances or dispositions that are part of a common
plan, of shares of Capital Stock of a Subsidiary (other than directors’ qualifying shares),
property or other assets (each referred to for the purposes of this definition as a “disposition”)
by the Company or any of its Restricted Subsidiaries, including any disposition by means of a
merger, consolidation or similar transaction (provided that (i) the disposition of all or
substantially all of the assets of the Company and its Restricted Subsidiaries, taken as a whole,
will be governed by Section 3.11 and Section 4.1 and (ii) the disposition of all
the Voting Stock of or all or substantially all of the assets of any Subsidiary Guarantor will be
governed by Section 3.9 and Section 4.1).

          Notwithstanding the preceding, the following items will not be deemed to be Asset
Dispositions:

	 	(1)	 	dispositions of assets in any single transaction or series of related
transactions that involves assets having an aggregate fair market value of no greater
than $3.0 million in any fiscal year;

3

 

	 	(2)	 	a disposition of assets by a Restricted Subsidiary to the Company or by the
Company or a Restricted Subsidiary to a Restricted Subsidiary (other than a Receivables
Entity); provided that in the case of a sale by a Restricted Subsidiary to another
Restricted Subsidiary, the Company directly or indirectly owns an equal or greater
percentage of the Common Stock of the transferee than of the transferor; and provided
further that in the case of a sale of Collateral, the transferee will cause such
amendments, supplements or other instruments to be executed, filed, and recorded in
such jurisdictions as may be required by applicable law to preserve and protect the
Lien on the Collateral owned by or transferred to the transferee, together with such
financing statements or comparable documents as may be required to perfect any security
interests in such Collateral which may be perfected by the filing of a financing
statement or a similar document under the Uniform Commercial Code or other similar
statute or regulation of the relevant states or jurisdictions;
	 
	 	(3)	 	an issuance of Capital Stock by a Restricted Subsidiary to the Company or to
another Restricted Subsidiary (other than a Receivables Entity); provided that in the
case of an issuance by a Restricted Subsidiary to another Restricted Subsidiary, the
Company directly or indirectly owns an equal or greater percentage of the Common Stock
of the transferee than of the transferor;
	 
	 	(4)	 	a disposition of inventory in the ordinary course of business;
	 
	 	(5)	 	sales of accounts receivable and related assets or an interest therein of the
type specified in the definition of “Qualified Receivables Transaction” to a
Receivables Entity;
	 
	 	(6)	 	the licensing or sublicensing of intellectual property or other general
intangibles and licenses, leases or subleases of other property in the ordinary course
of business which do not materially interfere with the business of the Company and its
Restricted Subsidiaries;
	 
	 	(7)	 	a disposition in the ordinary course of business of obsolete, worn out or
damaged equipment or assets that are no longer needed for use in the business of the
Company and its Restricted Subsidiaries as determined in good faith by the Company;
	 
	 	(8)	 	the creation of a Permitted Lien and dispositions in connection with Permitted
Liens;
	 
	 	(9)	 	the sale of assets upon the foreclosure of a lien;
	 
	 	(10)	 	the sale of Cash Equivalents and Marketable Securities in the ordinary course
of business;
	 
	 	(11)	 	a transaction or series of related transactions that results in a Change of
Control;

4

 

	 	(12)	 	any surrender or waiver of contract rights or the settlement, release or
surrender of contract rights or other litigation claims in the ordinary course of
business;
	 
	 	(13)	 	dispositions of receivables in connection with the compromise, settlement or
collection thereof in the ordinary course of business or in bankruptcy or similar
proceedings and exclusive of factoring or similar arrangements;
	 
	 	(14)	 	transactions permitted under Section 4.1;
	 
	 	(15)	 	for purposes of Section 3.5 only, the making of a Permitted Investment
(other than a Permitted Investment to the extent such transaction results in the
receipt of cash or Cash Equivalents by the Company or its Restricted Subsidiaries) or a
Restricted Payment that is permitted under Section 3.3; and
	 
	 	(16)	 	the sale or other disposition of the Newport Beach Property at any time prior
to January 1, 2011 (but not at any time thereafter).

          “Asset Swap” means a concurrent purchase and sale or exchange of Related Business Assets
between the Company or any of its Restricted Subsidiaries and another Person; provided that any
cash received must be applied in accordance with Section 3.5; and provided, further, that
cross-licensing and similar arrangements with respect to intellectual property shall not be an
Asset Swap.

          “Attributable Indebtedness” in respect of a Sale/Leaseback Transaction means, as at the time
of determination, the present value (discounted at the interest rate implicit in the transaction)
of the total obligations of the lessee for rental payments during the remaining term of the lease
included in such Sale/Leaseback Transaction (including any period for which such lease has been
extended), determined in accordance with GAAP; provided, however, that if such Sale/Leaseback
Transaction results in a Capitalized Lease Obligation, the amount of Indebtedness represented
thereby will be determined in accordance with the definition of “Capitalized Lease Obligations.”

          “Average Life” means, as of the date of determination, with respect to any Indebtedness or
Preferred Stock, the quotient obtained by dividing (1) the sum of the products of the numbers of
years from the date of determination to the dates of each successive scheduled principal payment of
such Indebtedness or redemption or similar payment with respect to such Preferred Stock multiplied
by the amount of such payment by (2) the sum of all such payments.

          “Banking Product Obligations” means, with respect to the Company or any Subsidiary Guarantor,
any obligations of the Company or such Subsidiary Guarantor owed to any Person in respect of
treasury management services (including, without limitation, services in connection with operating,
collections, payroll, trust, or other depository or disbursement accounts, including automated
clearinghouse, e-payable, electronic funds transfer, wire transfer, controlled disbursement,
overdraft, depositary, information reporting, lock-box and stop payment services), commercial
credit card and merchant card services, stored valued card services, other cash management
services, or lock-box leases and other banking products or services related to any of the
foregoing.

5

 

          “Bankruptcy Law” means Title 11 of the United States Code or any similar federal or state law
for the relief of debtors.

          “Bankruptcy Law Event of Default” means:

	 	(1)	 	that either the Company or a Material Subsidiary, pursuant to or within the
meaning of any Bankruptcy Law: (i) commences a voluntary case or proceeding; (ii)
consents to the entry of judgment, decree or order for relief against it in an
involuntary case or proceeding; (iii) consents to the appointment of a Custodian of it
or for any substantial part of its property; (iii) makes a general assignment for the
benefit of its creditors; (iv) consents to or acquiesces in the institution of a
bankruptcy or an insolvency proceeding against it; (v) takes any corporate action to
authorize or effect any of the foregoing; (vi) takes any comparable action under any
foreign laws relating to insolvency; or
	 
	 	(2)	 	a court of competent jurisdiction enters an order or decree under any Bankruptcy
Law that: (i) is for relief in an involuntary case against the Company or a Material
Subsidiary, pursuant to or within the meaning of any Bankruptcy Law; (ii) appoints a
Custodian for all or substantially all of the property of the Company or a Material
Subsidiary, pursuant to or within the meaning of any Bankruptcy Law; or (iii) orders
the winding up or liquidation of the Company or a Material Subsidiary, pursuant to or
within the meaning of any Bankruptcy Law; and (iv) in each case the order, decree or
relief remains unstayed and in effect for 60 days.

          “Board of Directors” means, as to any Person, the board of directors of such Person or any
duly authorized committee thereof.

          “Board Resolution” means a copy of a resolution certified by the Secretary or an Assistant
Secretary of a Person to have been duly adopted by the Board of Directors of such Person and to be
in full force and effect on the date of such certification, and delivered to the Trustee.

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

          “Capital Stock” of any Person means: (1) in the case of a corporation or a company, corporate
stock or shares; (2) in the case of an association or business entity, any and all shares,
interests, participations, rights or other equivalents (however designated) of corporate stock; (3)
in the case of a partnership or limited liability company, partnership or membership interests
(whether general or limited); and (4) any other interest or participation that confers on a person
the right to receive a share of the profits and losses of, or distributions of assets of, the
issuing person, in each case, including any rights to purchase, warrants, options or similar
interest with regard to the foregoing, but excluding any debt securities convertible into such
Capital Stock.

          “Capitalized Lease Obligations” means an obligation that is required to be classified and
accounted for as a capitalized lease for financial reporting purposes in accordance with GAAP, and
the amount of Indebtedness represented by such obligation will be the capitalized amount of

6

 

such obligation at the time any determination thereof is to be determined in accordance with
GAAP, and the Stated Maturity thereof will be the date of the last payment of rent or any other
amount due under such lease prior to the first date such lease may be terminated without penalty.

          “Cash Equivalents” means:

	 	(1)	 	securities issued or directly and fully guaranteed or insured by the United
States government or any agency or instrumentality of the United States or any
enterprise sponsored by the United States government (including Federal Farm Credit
Bank, Federal Home Loan Bank, Federal Home Loan Mortgage Corporation, Federal National
Mortgage Association, and Student Loan Marketing Association); provided that the full
faith and credit of the United States is pledged in support of the payment of principal
and interest thereof;
	 
	 	(2)	 	marketable general obligations issued by any state of the United States of
America or any political subdivision of any such state or any public instrumentality
thereof maturing within one year from the date of acquisition and, at the time of
acquisition, having a credit rating of “A” or better from either Standard & Poor’s
Ratings Group, Inc. or Moody’s Investors Service, Inc.;
	 
	 	(3)	 	certificates of deposit, time deposits, eurodollar time deposits, overnight
bank deposits, bankers’ acceptances or other obligations of commercial banks the
long-term debt of which is rated at the time of acquisition thereof at least “A” or the
equivalent thereof by Standard & Poor’s Ratings Group, Inc., or “A-2” or equivalent
thereof by Moody’s Investors Service, Inc.;
	 
	 	(4)	 	repurchase obligations which (a) have a term of not more than twenty-eight
days, (b) are for underlying securities of the types described in clauses (1), (2) and
(3), (c) are for securities which are market-priced greater than the invested amount at
the time of purchase (by a minimum of 102%), (d) are entered into with (i) any bank
meeting the qualifications specified in clause (3) above or (ii) financial institutions
that have been elected Primary Government Securities Dealers by the Market Reports
Division of the Federal Reserve Bank of New York;
	 
	 	(5)	 	commercial paper and other short-term, unsecured promissory notes issued by
corporations or financial institutions including but not limited to Master Notes,
Medium-Term Notes, Deposit Notes, Eurodollar Notes and Yankee Notes and bonds, in each
case, having a short-term rating of at least “A-1” by Standard & Poor’s Ratings Group,
Inc., or “P-1” by Moody’s Investors Service, Inc. and a long-term debt rating of at
least an “A-2” by Moody’s Investors Service, Inc. or “A” by Standard & Poor’s Ratings
Group, Inc.;
	 
	 	(6)	 	shares of an open-end investment company registered under the Investment
Company Act of 1940, as amended, provided that company (a) complies with the SEC
regulations under 2a-7 and maintains a constant net asset value, offers daily
liquidity, and (b) has an average weighted maturity that does not exceed 90 days;

7

 

	 	(7)	 	simple or straight floating rate securities which (a) are rated at least “A-2”
by Moody’s Investors Service, Inc. or “A” by Standard & Poor’s Ratings Group, Inc. or
equivalent, (b) have interest rates that are linked to a well-recognized money market
index such as the 3-month Treasury Bill, LIBOR, Prime Rate, 11th District Cost of Funds
(COFI), Commercial Paper, or Federal Funds, and (c) have coupon resets weekly, monthly,
quarterly or semi-annually; and
	 
	 	(8)	 	Asset-Backed Securities which (a) have a weighted average life of 2.0 years or
less and (b) are rated at least “Aa2” by Moody’s Investors Service, Inc. and “AA” by
Standard & Poor’s Ratings Group, Inc.;

provided, that, the consolidated portfolio of Cash Equivalents shall (a) have a minimum weighted
average portfolio quality of at least “Aa2” by Moody’s Investors Service, Inc. and “AA” by Standard
& Poor’s Ratings Group, Inc., (b) have both a weighted average maturity and weighted average
modified duration of 1.0 year or less, (c) except for Investments referred to in clause (1) above,
have no more than 5% of the portfolio’s market value at any time invested in any one issuer, (c)
have no individual Investments with a stated maturity that exceeds 2.0 years at any time, and (d)
have no Investments referred to in clause (6) with a market value at any time that exceeds 5% of
the total assets of the investment company or money market fund involved (as set forth in the most
recent report furnished to the Company by such investment company or money market fund).

          “Change of Control” means:

	 	(1)	 	the direct or indirect sale, lease, transfer, conveyance or other disposition
(other than by way of merger or consolidation), in one or a series of related
transactions, of all or substantially all of the properties or assets of the Company
and its Restricted Subsidiaries taken as a whole to any “person” (as that term is used
in Section 13(d)(3) of the Exchange Act);
	 
	 	(2)	 	the adoption of a plan relating to the liquidation or dissolution of the
Company;
	 
	 	(3)	 	any “person” (as that term is used in Section 13(d)(3) of the Exchange Act)
becomes the beneficial owner, directly or indirectly, of more than 50% of the Voting
Stock of the Company, measured by voting power rather than number of shares; or
	 
	 	(4)	 	the first day on which a majority of the members of the Board of Directors of
the Company are not Continuing Directors.

          “Clearstream” means Clearstream Banking, S.A.

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

          “Collateral” means all properties and assets at any time owned or acquired by any Grantor,
except:

          (1) Excluded Assets;

8

 

          (2) any properties and assets in which the Collateral Trustee is required to release its Liens
in accordance with Section 11.8(a) and

          (3) any properties and assets that no longer secure the Notes or any obligations in respect
thereof in accordance with Section 11.8(b);

provided that, in the case of clauses (2) and (3), if such Liens are required to be released as a
result of the sale, transfer or other disposition of any properties or assets of any Grantor, such
assets or properties will cease to be excluded from the Collateral if any Grantor thereafter
acquires or reacquires such assets or properties.

          “Collateral Account” means any deposit or securities account in which the Collateral Trustee
has a perfected security interest (including any general cash management account of the Company or
its Restricted Subsidiaries in which the Collateral Trustee has such a perfected security interest)
that is free from all other Liens and includes all cash and Cash Equivalents received by the
Collateral Trustee from Asset Dispositions of Collateral, Recovery Events, Asset Swaps involving
the transfer of Collateral, foreclosures on or sales of Collateral, any issuance of Additional
Notes or any other awards or proceeds pursuant to the Security Documents, including earnings,
revenues, rents, issues, profits and income from the Collateral received pursuant to the Security
Documents, and interest earned thereon.

          “Collateral Trust Agreement” means that certain Collateral Trust Agreement, dated the date
hereof, among the Company, the Subsidiary Guarantors, the Trustee and the Collateral Trustee.

          “Collateral Trustee” means The Bank of New York Mellon Trust Company, N.A., in its capacity as
collateral trustee under the Collateral Trust Agreement, together with its successors in such
capacity.

          “Common Stock” means with respect to any Person, any and all shares, interests or other
participations in, and other equivalents (however designated and whether voting or nonvoting) of
such Person’s common stock whether or not outstanding on the Issue Date, and includes, without
limitation, all series and classes of such common stock.

          “Company” means Conexant Systems, Inc., or its successors and assigns.

          “Conexant CF” means Conexant CF LLC, a Delaware limited liability company.

          “Consolidated EBITDA” for any period means, without duplication, the Consolidated Net Income
for such period, plus the following to the extent deducted in calculating such Consolidated Net
Income:

	 	(1)	 	Consolidated Interest Expense; plus
	 
	 	(2)	 	Consolidated Income Taxes; plus
	 
	 	(3)	 	consolidated depreciation expense; plus

9

 

	 	(4)	 	consolidated amortization expense or impairment charges recorded in connection
with the application of FASB Statement of Financial Accounting Standards No. 142,
“Goodwill and Other Intangibles,” and FASB Statement of Financial Accounting Standards
No. 144, “Accounting for the Impairment or Disposal of Long Lived Assets” and FASB
Statement of Financial Accounting Standards No. 146, “Accounting for Costs Associated
with Exit or Disposal Activities;” plus
	 
	 	(5)	 	cash received for non-cash items that reduced Consolidated EBITDA in any prior
period; less
	 
	 	(6)	 	cash paid for non-cash items that increased Consolidated EBITDA in any prior
period; plus
	 
	 	(7)	 	other non-cash charges reducing Consolidated Net Income (excluding any such
non-cash charge to the extent it represents an accrual of or reserve for cash in any
future period or amortization of a prepaid cash expense that was paid in a prior period
not included in the calculation); less
	 
	 	(8)	 	non-cash items increasing Consolidated Net Income of such Person for such
period (excluding any items which represent the reversal of any accrual of, or reserve
for, anticipated cash charges made in any prior period).

          “Consolidated Income Taxes” means the amount of tax expense reflected in the Company’s
consolidated income statement prepared in accordance with GAAP.

          “Consolidated Interest Expense” means, for any period, the total interest expense of the
Company and its consolidated Restricted Subsidiaries, whether paid or accrued, plus, to the extent
not included in such interest expense:

	 	(1)	 	interest expense attributable to Capitalized Lease Obligations and the interest
portion of rent expense associated with Attributable Indebtedness in respect of the
relevant lease giving rise thereto, determined as if such lease were a capitalized
lease in accordance with GAAP and the interest component of any deferred payment
obligations;
	 
	 	(2)	 	amortization of debt discount and debt issuance cost; provided, however, that
any amortization of bond premium will be credited to reduce Consolidated Interest
Expense unless, pursuant to GAAP, such amortization of bond premium has otherwise
reduced Consolidated Interest Expense;
	 
	 	(3)	 	paid-in-kind interest, discount notes or comparable interest expense items;
	 
	 	(4)	 	commissions, discounts and other fees and charges owed with respect to letters
of credit and bankers’ acceptance financing;
	 
	 	(5)	 	the interest expense on Indebtedness of another Person that is Guaranteed by
such Person or any of its Restricted Subsidiaries or secured by a Lien on assets of
such Person or any of its Restricted Subsidiaries;

10

 

	 	(6)	 	net costs associated with Hedging Obligations (including amortization of fees);
provided, however, that if Hedging Obligations result in net benefits rather than
costs, such benefits will be credited to reduce Consolidated Interest Expense unless,
pursuant to GAAP, such net benefits are otherwise reflected in Consolidated Net Income;
	 
	 	(7)	 	the consolidated interest expense of such Person and its Restricted
Subsidiaries that was capitalized during such period;
	 
	 	(8)	 	the product of (a) all dividends paid or payable, in cash, Cash Equivalents or
Indebtedness or accrued during such period on any series of Disqualified Stock of such
Person or on Preferred Stock of its Restricted Subsidiaries that are not Subsidiary
Guarantors payable to a party other than the Company or a Wholly Owned Subsidiary,
times (b) a fraction, the numerator of which is one and the denominator of which is one
minus the then current combined federal, state, provincial and local statutory tax rate
of such Person, expressed as a decimal, in each case, on a consolidated basis and in
accordance with GAAP;
	 
	 	(9)	 	Receivables Fees; and
	 
	 	(10)	 	the cash contributions to any employee stock ownership plan or similar trust to
the extent such contributions are used by such plan or trust to pay interest or fees to
any Person (other than the Company and its Restricted Subsidiaries) in connection with
Indebtedness Incurred by such plan or trust.

          For purposes of the foregoing, total interest expense will be determined (1) after giving
effect to any net payments made or received by the Company and its Subsidiaries with respect to
interest rate agreements and (2) exclusive of amounts classified as other comprehensive income in
the balance sheet of the Company.

          “Consolidated Leverage Ratio” means, as of any date of determination (the “Test Date”), the
ratio of (1) Consolidated Total Indebtedness as of the Test Date to (2) the aggregate amount of
Consolidated EBITDA for the period of the most recent four consecutive fiscal quarters ending prior
to the Test Date (the “Reference Period”) for which financial statements are available.

          In determining the Consolidated Leverage Ratio:

          (1) if the transaction giving rise to the need to calculate the Consolidated Leverage Ratio is
an Incurrence of Indebtedness, the amount of such Indebtedness shall be calculated after giving
effect on a pro forma basis to the Incurrence of such Indebtedness and, if applicable, the
repayment of other Indebtedness, to the extent such repayment is consummated on a substantially
concurrent basis;

          (2) if the Company or any Restricted Subsidiary has repaid, repurchased, defeased or otherwise
discharged any Indebtedness that was outstanding as of the end of such fiscal quarter or if any
Indebtedness is to be repaid, repurchased, defeased or otherwise discharged on the date of the
transaction giving rise to the need to calculate the Consolidated Leverage Ratio (other

11

 

than, in each case, Indebtedness Incurred under any revolving credit agreement), the aggregate
amount of Indebtedness shall be calculated on a pro forma basis and Consolidated EBITDA shall be
calculated as if (x) such repaid, repurchased, defeased or otherwise discharged Indebtedness had
not been outstanding during the relevant period and (y) the Company or such Restricted Subsidiary
had not earned the interest income, if any, actually earned during the Reference Period in respect
of cash or Cash Equivalents used to repay, repurchase, defease or otherwise discharge such
Indebtedness;

          (3) if since the beginning of the Reference Period the Company or any Restricted Subsidiary
shall have made any Asset Disposition, the Consolidated EBITDA for the Reference Period shall be
reduced by an amount equal to the Consolidated EBITDA (if positive) directly attributable to the
assets which are the subject of such Asset Disposition for the Reference Period or increased by an
amount equal to the Consolidated EBITDA (if negative) directly attributable thereto for the
Reference Period;

          (4) if since the beginning of the Reference Period the Company or any Restricted Subsidiary
(by merger or otherwise) shall have made an Investment in any Restricted Subsidiary (or any Person
which becomes a Restricted Subsidiary) or an acquisition of assets which constitutes all or
substantially all of an operating unit of a business, Consolidated EBITDA for the Reference Period
shall be calculated after giving pro forma effect thereto (including the Incurrence of any
Indebtedness) as if such Investment or acquisition had occurred on the first day of the Reference
Period; and

          (5) if since the beginning of the Reference Period any Person (that subsequently became a
Restricted Subsidiary or was merged with or into the Company or any Restricted Subsidiary since the
beginning of such Reference Period) shall have made any Asset Disposition, any Investment or
acquisition of assets that would have required an adjustment pursuant to clause (3) or (4) above if
made by the Company or a Restricted Subsidiary during the Reference Period, Consolidated EBITDA for
the Reference Period shall be calculated after giving pro forma effect thereto as if such Asset
Disposition, Investment or acquisition had occurred on the first day of the Reference Period.

          Whenever pro forma effect is to be given to any calculation under this definition, the pro
forma calculations will be determined in good faith by a responsible financial or accounting
officer of the Company (including pro forma expense and cost reductions calculated on a basis
consistent with Regulation S-X under the Securities Act). If any Indebtedness bears a floating rate
of interest and is being given pro forma effect, the interest expense on such Indebtedness will be
calculated as if the rate in effect on the date of determination had been the applicable rate for
the entire period (taking into account any interest rate agreement applicable to such Indebtedness
if such interest rate agreement has a remaining term in excess of 12 months). If any Indebtedness
that is being given pro forma effect bears an interest rate at the option of the Company, the
interest rate will be calculated by applying such optional rate chosen by the Company.

          “Consolidated Net Income” means, for any period, the net income (loss) of the Company and its
consolidated Restricted Subsidiaries determined in accordance with GAAP; provided, however, that
there will not be included in such Consolidated Net Income:

12

 

	 	(1)	 	any net income (loss) of any Person if such Person is not a Restricted
Subsidiary, except that:

	 	(i)	 	subject to the limitations contained in clauses (3), (4) and
(5) below, the Company’s equity in the net income of any such Person for such
period will be included in such Consolidated Net Income up to the aggregate
amount of cash actually distributed by such Person during such period to the
Company or a Restricted Subsidiary as a dividend or other distribution
(subject, in the case of a dividend or other distribution to a Restricted
Subsidiary, to the limitations contained in clause (2) below); and
	 
	 	(ii)	 	the Company’s equity in a net loss of any such Person (other
than an Unrestricted Subsidiary) for such period will be included in
determining such Consolidated Net Income to the extent such loss has been
funded with cash from the Company or a Restricted Subsidiary;

	 	(2)	 	any net income (but not loss) of any Restricted Subsidiary if such Restricted
Subsidiary is subject to restrictions, directly or indirectly, on the payment of
dividends or the making of distributions by such Restricted Subsidiary, directly or
indirectly, to the Company, except that:

	 	(i)	 	subject to the limitations contained in clauses (3), (4) and
(5) below, the Company’s equity in the net income of any such Restricted
Subsidiary for such period will be included in such Consolidated Net Income up
to the aggregate amount of cash that could have been distributed by such
Restricted Subsidiary during such period to the Company or another Restricted
Subsidiary as a dividend (subject, in the case of a dividend to another
Restricted Subsidiary, to the limitation contained in this clause); and
	 
	 	(ii)	 	the Company’s equity in a net loss of any such Restricted
Subsidiary for such period will be included in determining such Consolidated
Net Income;

	 	(3)	 	any gain (loss) realized upon the sale or other disposition of any property,
plant or equipment of the Company or its consolidated Restricted Subsidiaries
(including pursuant to any Sale/Leaseback Transaction) which is not sold or otherwise
disposed of in the ordinary course of business and any gain (loss) realized upon the
sale or other disposition of any Capital Stock of any Person;
	 
	 	(4)	 	any extraordinary gain or loss (determined in accordance with GAAP); and
	 
	 	(5)	 	the cumulative effect of a change in accounting principles.

          “Consolidated Total Indebtedness” means the aggregate amount of Indebtedness of the Company
and its Restricted Subsidiaries on a consolidated basis.

13

 

          “Contingent Liabilities” means, at any time, any obligations for taxes, costs,
indemnifications, reimbursements, damages and other liabilities in respect of which no claim or
demand for payment has been made at such time.

          “Continuing Directors” means, as of any date of determination, any member of the Board of
Directors of the Company who:

	 	(1)	 	was a member of such Board of Directors on the Issue Date; or
	 
	 	(2)	 	was nominated for election or elected to such Board of Directors with the
approval of a majority of the Continuing Directors then still in office or with the
approval of a majority of Directors whose election was previously so approved.

          “Convertible Notes” means the Company’s outstanding 4.0% Convertible Subordinated Notes due
2026.

          “Currency Agreement” means, in respect of any Person, any foreign exchange contract, currency
swap agreement, futures contract, option contract or other similar agreement as to which such
Person is a party or a beneficiary.

          “Custodian” means any receiver, trustee, assignee, liquidator, custodian or similar official
under any Bankruptcy Law.

          “Default” means any event that is, or with the passage of time or the giving of notice or both
would be, an Event of Default.

          “Definitive Notes” means certificated Notes.

          “Discharge of Shared Lien Obligations” means the occurrence of all of the following:

          (1) termination or expiration of all commitments to extend credit that would constitute Shared
Lien Debt;

          (2) payment in full in cash of the principal of, and premium and interest, if any, on, all
Shared Lien Debt (other than any undrawn letters of credit);

          (3) discharge or cash collateralization (at the lower of (a) 105% of the aggregate undrawn
amount and (b) the percentage of the aggregate undrawn amount required for release of Liens under
the terms of the applicable Shared Lien Document) of all outstanding letters of credit constituting
Shared Lien Debt; and

          (4) payment in full in cash of all other Shared Lien Obligations that are outstanding and
unpaid at the time the Shared Lien Debt is paid in full in cash (other than any Contingent
Liabilities).

          “Disqualified Stock” means, with respect to any Person, any Capital Stock of such Person which
by its terms (or by the terms of any security into which it is convertible or for which it is
exchangeable) or upon the happening of any event:

14

 

	 	(1)	 	matures or is mandatorily redeemable pursuant to a sinking fund obligation or
otherwise;
	 
	 	(2)	 	is convertible or exchangeable for Indebtedness or Disqualified Stock
(excluding Capital Stock which is convertible or exchangeable solely at the option of
the Company or any Restricted Subsidiary); or
	 
	 	(3)	 	is redeemable at the option of the holder of the Capital Stock in whole or in
part,

in each case on or prior to the date that is 91 days after the earlier of the date (a) of the
Stated Maturity of the Notes or (b) on which there are no Notes outstanding, provided that only the
portion of Capital Stock which so matures or is mandatorily redeemable, is so convertible or
exchangeable or is so redeemable at the option of the holder thereof prior to such date will be
deemed to be Disqualified Stock; provided, further that any Capital Stock that would constitute
Disqualified Stock solely because the holders thereof have the right to require the Company to
repurchase such Capital Stock upon the occurrence of a change of control or asset sale (each
defined in a substantially identical manner to the corresponding definitions in this Indenture)
will not constitute Disqualified Stock if the terms of such Capital Stock (and all such securities
into which it is convertible or for which it is ratable or exchangeable) provide that the Company
may not repurchase or redeem any such Capital Stock (and all such securities into which it is
convertible or for which it is ratable or exchangeable) pursuant to such provision unless such
repurchase or redemption complies with Section 3.5 and Section 3.11; and, provided
further, that if Capital Stock is issued to any plan for the benefit of employees of a Person or
its Subsidiaries or by any such plan to those employees, that Capital Stock will not constitute
Disqualified Stock solely because it may be required to be repurchased by such Person in order to
satisfy applicable statutory or regulatory obligations.

          “Domestic Subsidiary” means any Restricted Subsidiary that is organized under the laws of the
United States of America or any state thereof or the District of Columbia.

          “DTC” means The Depository Trust Company, its nominees and their respective successors and
assigns, or such other depository institution hereinafter appointed by the Company.

          “Equity Offering” means an offering for cash by the Company of its Common Stock, or options,
warrants or rights with respect to its Common Stock, other than (1) public offerings with respect
to the Company’s Common Stock, or options, warrants or rights, registered on Form S-4 or S-8, (2)
an issuance to any Subsidiary or (3) any offering of Common Stock issued in connection with a
transaction that constitutes a Change of Control.

          “Euroclear” means Euroclear Bank, S.A./N.V., as operator of the Euroclear system.

          “Exchange Act” means the Securities Exchange Act of 1934, as amended, and the rules and
regulations of the SEC promulgated thereunder.

          “Excluded Assets” means:

15

 

          (1) any lease, license, contract or agreement to which the Company or any Subsidiary
Guarantor is a party, and any of its rights or interest thereunder, if and to the extent, but only
to the extent, that a security interest in such lease, license, contract or agreement is prohibited
by or in violation of:

     (a) any law, rule or regulation applicable to the Company or such Subsidiary Guarantor,
or

     (b) a term, provision or condition of any such lease, license, contract or agreement
(unless such law, rule, regulation, term, provision or condition would be rendered
ineffective with respect to the creation of the security interest hereunder pursuant to
Sections 9-406, 9-407, 9-408 or 9-409 of the Uniform Commercial Code (or any successor
provision or provisions) of any relevant jurisdiction or any other applicable law (including
the Bankruptcy Code) or principles of equity);

provided, however, that the Collateral shall include (and such security interest shall attach)
immediately at such time as the contractual or legal prohibition shall no longer be applicable and
to the extent severable, shall attach immediately to any portion of such lease, license, contract
or agreement not subject to the prohibitions specified in (a) or (b) above; provided, further, that
the exclusions referred to in this clause (1) shall not include any “proceeds” (as defined in the
Uniform Commercial Code (or any successor provision or provisions) of any relevant jurisdiction) of
any such lease, license, contract or agreement;

          (2) all Receivables and Related Receivable Rights;

          (3) to the extent a Receivable was sold to a Receivables Entity pursuant to a Qualified
Receivables Transaction permitted by the terms of this Indenture and any other Shared Lien
Documents, any Qualified Related Receivables Rights with respect to such Receivable but only to the
extent such Qualified Related Receivable Rights were required to be transferred to the Receivables
Entity free and clear of all Liens;

          (4) any of:

     (a) the outstanding capital stock of a “controlled foreign corporation” (as defined in
the Internal Revenue Code) (a “CFC”) in excess of 65% of the voting power of all classes of
capital stock of such CFC entitled to vote; provided that immediately upon the amendment of
the Internal Revenue Code to allow the pledge of a greater percentage of the voting power of
capital stock in a CFC without adverse tax consequences, the Collateral shall include, and
the security interest granted by the Company and each Subsidiary Guarantor shall attach to,
such greater percentage of capital stock of each CFC;

     (b) the outstanding Capital Stock of a CFC other than a First Tier Foreign Subsidiary;
and

     (c) the membership interests of Conexant CF;

16

 

          (5) any “intent-to-use” application for registration of a trademark filed pursuant to Section
1(b) of the Lanham Act, 15 U.S.C. § 1051, prior to the filing of a “Statement of Use” pursuant to
Section 1(d) of the Lanham Act or an “Amendment to Allege Use” pursuant to Section 1(c) of the
Lanham Act with respect thereto, solely to the extent, if any, that, and solely during the period,
if any, in which, the grant of a security interest therein would impair the validity or
enforceability of any registration that issues from such intent-to-use application under applicable
federal law;

          (6) the Newport Beach Property (provided, that the Newport Beach Property will no longer
constitute Excluded Assets at any time on or after January 1, 2011 if on such date the Newport
Beach Property has not been transferred in a bona fide sale to a third party that is not an
Affiliate of the Company);

          (7) any leasehold interest in real property;

          (8) on and after the date the Company enters into any credit facility secured by collateral
that includes Inventory (among other collateral that may secure such credit facility, if any)
providing for a commitment to extend Revolving Credit Debt in an aggregate principal amount of at
least $5.0 million, any Inventory and Related Inventory Rights;

          (9) all cash (other than cash proceeds of the Collateral), deposit accounts (other than the
Collateral Account) and securities accounts;

          (10) any motor vehicles, vessels and aircraft or other property subject to a certificate of
title statute of any jurisdiction; and

          (11) any Capital Stock in any joint venture with a third party that is not an Affiliate to the
extent a pledge of such Capital Stock is prohibited by the documents governing such joint venture;

provided, however, that, notwithstanding the foregoing, the Collateral shall include, and the
security interest granted by the Company and each Subsidiary Guarantor shall attach, to such
property or asset referred to in clauses (2) through (11) of this definition to the extent that the
Company or any Subsidiary Guarantor grants or permits any Lien on such property or asset to secure
any Shared Lien Obligation.

          “Existing Indebtedness” means any Indebtedness outstanding on the Issue Date, other than
Indebtedness described in clauses (1), (2)(i), (2)(ii) and (3) of the definition of Permitted Debt.

          “First Tier Foreign Subsidiary” means any Restricted Subsidiary organized outside the United
States that is directly owned by the Company or a Subsidiary Guarantor.

          “Foreign Subsidiary” means any Restricted Subsidiary of the Company that is not a Domestic
Subsidiary.

          “GAAP” means generally accepted accounting principles in the United States of America as in
effect as of the Issue Date, including those set forth in the opinions and pronouncements of

17

 

the Accounting Principles Board of the American Institute of Certified Public Accountants and
statements and pronouncements of the Financial Accounting Standards Board or in such other
statements by such other entity as have been approved by a significant segment of the accounting
profession. All ratios and computations based on GAAP contained in this Indenture will be computed
in conformity with GAAP, except that in the event the Company is acquired in a transaction that is
accounted for using purchase accounting, the effects of the application of purchase accounting will
be disregarded in the calculation of such ratios and other computations contained in this
Indenture.

          “Government Securities” means direct obligations of, or obligations guaranteed by, the United
States of America (including any agency or instrumentality thereof) for the payment of which
obligations or guarantee the full faith and credit of the United States is pledged and which are
not callable or redeemable at the option of the issuer thereof.

          “Grantors” means the Company, each Subsidiary Guarantor and any other Person (if any) that
pledges any Collateral under the Security Documents to secure any Shared Lien Obligations, together
in each case with their respective successors.

          “Guarantee” means any obligation, contingent or otherwise, of any Person directly or
indirectly guaranteeing any Indebtedness of any other Person and any obligation, direct or
indirect, contingent or otherwise, of such Person:

	 	(1)	 	to purchase or pay (or advance or supply funds for the purchase or payment of)
such Indebtedness of such other Person (whether arising by virtue of partnership
arrangements, or by agreement to keep-well, to purchase assets, goods, securities or
services, to take-or-pay, or to maintain financial statement conditions or otherwise);
or
	 
	 	(2)	 	entered into for purposes of assuring in any other manner the obligee of such
Indebtedness of the payment thereof or to protect such obligee against loss in respect
thereof (in whole or in part); provided, however, that the term “Guarantee” will not
include endorsements for collection or deposit in the ordinary course of business.

The term “Guarantee” used as a verb has a corresponding meaning.

          “Hedge Agreement” means any agreement evidencing Hedging Obligations.

          “Hedging Obligations” of any Person means the obligations of such Person pursuant to any
Interest Rate Agreement or Currency Agreement, including Guarantee obligations in respect thereof.

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

          “IAI” means an institutional “accredited investor” as described in Rule 501(a)(1), (2), (3) or
(7) under the Securities Act, other than a QIB.

18

 

          “Incur” means issue, create, assume, Guarantee, incur or otherwise become liable for;
provided, however, that any Indebtedness or Capital Stock of a Person existing at the time such
Person becomes a Restricted Subsidiary (whether by merger, consolidation, acquisition or otherwise)
will be deemed to be Incurred by such Restricted Subsidiary at the time it becomes a Restricted
Subsidiary; and the terms “Incurred” and “Incurrence” have meanings correlative to the foregoing.

          “Indebtedness” means, with respect to any Person on any date of determination (without
duplication):

	 	(1)	 	the principal of and premium, if any, in respect of indebtedness of such Person
for borrowed money;
	 
	 	(2)	 	the principal of and premium, if any, in respect of obligations of such Person
evidenced by bonds, debentures, notes or other similar instruments;
	 
	 	(3)	 	the principal component of all obligations of such Person in respect of letters
of credit, bankers’ acceptances or other similar instruments (including reimbursement
obligations with respect thereto except to the extent such reimbursement obligation
relates to a trade payable and such obligation is satisfied within 90 days of
Incurrence);
	 
	 	(4)	 	Capitalized Lease Obligations and all Attributable Indebtedness of such Person;
	 
	 	(5)	 	the principal component of all obligations of such Person to pay the deferred
and unpaid purchase price of property (except trade payables), which purchase price is
due more than six months after the date of placing such property in service or taking
delivery and title thereto;
	 
	 	(6)	 	the principal component or liquidation preference of all obligations of such
Person with respect to the redemption, repayment or other repurchase of any
Disqualified Stock or, with respect to any Subsidiary that is not a Subsidiary
Guarantor, any Preferred Stock;
	 
	 	(7)	 	the principal component of all Indebtedness of other Persons secured by a Lien
on any asset of such Person, whether or not such Indebtedness is assumed by such
Person; provided, however, that the amount of such Indebtedness will be the lesser of
(a) the fair market value of such asset at such date of determination and (b) the
amount of such Indebtedness of such other Persons;
	 
	 	(8)	 	the principal component of Indebtedness of other Persons to the extent
Guaranteed by such Person;
	 
	 	(9)	 	to the extent not otherwise included in this definition, net obligations of
such Person under Hedging Obligations (the amount of any such obligations to be equal
at any time to the termination value of such agreement or arrangement giving rise to
such obligation that would be payable by such Person at such time); and

19

 

	 	(10)	 	to the extent not otherwise included in this definition, the Receivables
Transaction Amount outstanding relating to a Qualified Receivables Transaction.

          The amount of Indebtedness of any Person at any date will be the outstanding balance at such
date of all unconditional obligations as described above and the maximum liability, upon the
occurrence of the contingency giving rise to the obligation, of any contingent obligations at such
date.

          In addition, “Indebtedness” of any Person will include Indebtedness described in the preceding
paragraph that would not appear as a liability on the balance sheet of such Person if:

	 	(1)	 	such Indebtedness is the obligation of a partnership or joint venture that is
not a Restricted Subsidiary (a “Joint Venture”);
	 
	 	(2)	 	such Person or a Restricted Subsidiary of such Person is a general partner of
the Joint Venture (a “General Partner”); and
	 
	 	(3)	 	there is recourse, by contract or operation of law, with respect to the payment
of such Indebtedness to property or assets of such Person or a Restricted Subsidiary of
such Person; and then such Indebtedness will be included in an amount not to exceed:

	 	(i)	 	the lesser of (x) the net assets of the General Partner and
(y) the amount of such obligations to the extent that there is recourse, by
contract or operation of law, to the property or assets of such Person or a
Restricted Subsidiary of such Person; or
	 
	 	(ii)	 	if less than the amount determined pursuant to clause (i)
immediately above, the actual amount of such Indebtedness that is recourse to
such Person or a Restricted Subsidiary of such Person, if the Indebtedness is
evidenced by a writing and is for a determinable amount.

          Notwithstanding the foregoing, “Indebtedness” will not include:

	 	(1)	 	contingent obligations incurred in the ordinary course of business and not in
respect of borrowed money;
	 
	 	(2)	 	deferred or prepaid revenues;
	 
	 	(3)	 	purchase price holdbacks in respect of a portion of the purchase price of an
asset to satisfy warranty or other unperformed obligations of the respective seller;
	 
	 	(4)	 	any obligations to make progress or incentive payments or risk money payments
under any contract to the extent not overdue by more than 90 days;
	 
	 	(5)	 	the effects of SFAS No. 133 and related interpretations to the extent such
effects would otherwise increase or decrease an amount of Indebtedness for any purpose

20

 

	 	 	 	under this Indenture as a result of accounting for any embedded derivatives created
by the terms of such Indebtedness;

	 	(6)	 	advance payments by customers in the ordinary course of business for services
or products to be provided or delivered in the future; or
	 
	 	(7)	 	deferred taxes.

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

          “Initial Purchaser” means, Goldman, Sachs & Co.

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

          “insolvency or liquidation proceeding” means:

          (1) any case commenced by or against any Grantor under Title 11 of the U.S. Code or any
similar federal or state law for the relief of debtors, any other proceeding for the
reorganization, recapitalization or adjustment or marshalling of the assets or liabilities of any
Grantor, any receivership or assignment for the benefit of creditors relating to any Grantor or any
similar case or proceeding relative to any Grantor or its creditors, as such, in each case whether
or not voluntary;

          (2) any liquidation, dissolution, marshalling of assets or liabilities or other winding up of
or relating to any Grantor, in each case whether or not voluntary and whether or not involving
bankruptcy or insolvency; or

          (3) any other proceeding of any type or nature in which substantially all claims of creditors
of any Grantor are determined and any payment or distribution is or may be made on account of such
claims.

          “Interest Rate Agreement” means, with respect to any Person any interest rate protection
agreement, interest rate future agreement, interest rate option agreement, interest rate swap
agreement, interest rate cap agreement, interest rate collar agreement, interest rate hedge
agreement or other similar agreement or arrangement as to which such Person is party or a
beneficiary.

          “Inventory” has the meaning given under the Uniform Commercial Code.

          “Investment” means, with respect to any Person, all direct or indirect investments by such
Person in other Persons (including Affiliates) in the form of any advance, loan (other than
advances or extensions of credit to customers in the ordinary course of business) or other
extensions of credit (including by way of Guarantee or similar arrangement, but excluding any debt
or extension of credit represented by a bank deposit other than a time deposit) or capital
contribution to (by means of any transfer of cash or other property to others or any payment for
property or services for the account or use of others), or any purchase or acquisition of Capital
Stock, Indebtedness or other similar instruments issued by such other Person and all other items

21

 

that are or would be classified as investments on a balance sheet prepared in accordance with
GAAP; provided that none of the following will be deemed to be an Investment:

	 	(1)	 	Hedging Obligations entered into in the ordinary course of business and in
compliance with this Indenture;
	 
	 	(2)	 	endorsements of negotiable instruments and documents in the ordinary course of
business; and
	 
	 	(3)	 	an acquisition of assets, Capital Stock or other securities by the Company or a
Subsidiary for consideration to the extent such consideration consists of Common Stock
of the Company or securities (other than Preferred Stock of a Restricted Subsidiary
that is not a Subsidiary Guarantor, Indebtedness or Disqualified Stock) that are
convertible, exchangeable or exercisable solely for Common Stock of the Company.

          For purposes of Section 3.3,

	 	(1)	 	“Investment” will include the portion (proportionate to the Company’s equity
interest in a Restricted Subsidiary to be designated as an Unrestricted Subsidiary) of
the fair market value of the net assets of such Restricted Subsidiary at the time that
such Restricted Subsidiary is designated an Unrestricted Subsidiary; provided, however,
that upon a redesignation of such Unrestricted Subsidiary as a Restricted Subsidiary,
the Company will be deemed to continue to have a permanent “Investment” in an
Unrestricted Subsidiary in an amount (if positive) equal to (a) the Company’s
“Investment” in such Subsidiary at the time of such redesignation less (b) the portion
(proportionate to the Company’s equity interest in such Subsidiary) of the fair market
value of the net assets (as conclusively determined by the Board of Directors of the
Company in good faith) of such Subsidiary at the time that such Subsidiary is so
re-designated a Restricted Subsidiary; and
	 
	 	(2)	 	any property transferred to or from an Unrestricted Subsidiary will be valued
at its fair market value at the time of such transfer, in each case as determined in
good faith by the Board of Directors of the Company.

          “Issue Date” means March 10, 2010.

          “Lien” means any mortgage, pledge, security interest, encumbrance, lien or charge of any kind
(including any conditional sale or other title retention agreement or lease in the nature thereof).

          “Lien Sharing and Priority Confirmation” means, as to any future Series of Shared Lien
Obligations, the written agreement of the holders of such Series of Shared Lien Obligations as set
forth in this Indenture, credit agreement or other agreement governing such Series of Shared Lien
Obligations, for the benefit of all current and future holders of Shared Lien Debt and each current
and future Shared Lien Representative:

22

 

	 	(1)	 	that all Shared Lien Obligations will be and are secured equally and
ratably by all Shared Liens at any time granted by any Grantor to secure any
Obligations in respect of such Series of Shared Lien Obligations and that all such
Shared Liens will be enforceable by the Collateral Trustee for the benefit of all
holders of Shared Lien Obligations;
	 
	 	(2)	 	that the holders of Obligations in respect of such Series of Shared Lien
Obligations are bound by the provisions of the Collateral Trust Agreement, including
the provisions relating to the ranking of Shared Liens and the order of application of
proceeds from enforcement of Shared Liens; and
	 
	 	(3)	 	consenting to the terms of the Collateral Trust Agreement and the Collateral
Trustee’s performance of, and directing the Collateral Trustee to perform its
obligations under, the Collateral Trust Agreement and the other Security Documents.

          “Marketable Securities” means marketable securities (other than Capital Stock) as shown on the
Company’s consolidated balance sheet prepared in accordance with GAAP.

          “Material Restricted Subsidiary” means any Domestic Subsidiary that would constitute a
Significant Subsidiary, except that for purposes of this Indenture, the 10% threshold in Article 1,
Rule 1-02 of Regulation S-X will be deemed to be 5%.

          “Material Subsidiary” means any Significant Subsidiary (or group of Restricted Subsidiaries
that, taken together (as of the latest audited consolidated financial statements for the Company
and its Restricted Subsidiaries) would constitute a Significant Subsidiary.

          “Net Available Cash” means aggregate cash proceeds received by the Company or any of its
Restricted Subsidiaries in respect of an Asset Disposition (including any cash payments received by
way of deferred payment of principal pursuant to a note or installment receivable or otherwise and
net proceeds from the sale or other disposition of any securities received as consideration, but
only as and when received, but excluding any other consideration received in the form of assumption
by the acquiring person of Indebtedness or other obligations relating to the properties or assets
that are the subject of such Asset Disposition or received in any other non-cash form) therefrom,
in each case net of:

	 	(1)	 	all legal, accounting, investment banking, title and recording tax expenses,
commissions and other fees and expenses Incurred, and all federal, state, provincial,
foreign and local taxes required to be paid or accrued as a liability under GAAP (after
taking into account any available tax credits or deductions and any tax sharing
agreements), as a consequence of such Asset Disposition;
	 
	 	(2)	 	all payments made on any Indebtedness which is secured by any assets subject to
such Asset Disposition, in accordance with the terms of any Lien upon such assets, or
which must by its terms, or in order to obtain a necessary consent to such Asset
Disposition, or by applicable law be repaid out of the proceeds from such Asset
Disposition;

23

 

	 	(3)	 	all distributions and other payments required to be made to minority interest
holders in Subsidiaries or joint ventures as a result of such Asset Disposition; and
	 
	 	(4)	 	the deduction of appropriate amounts to be provided by the seller as a reserve,
in accordance with GAAP, against any liabilities associated with the assets disposed of
in such Asset Disposition and retained by the Company or any Restricted Subsidiary
after such Asset Disposition.

          “Net Award” means any awards or proceeds in respect of any condemnation or other eminent
domain proceeding relating to any Collateral deposited in a Collateral Account pursuant to the
Security Documents.

          “Net Cash Proceeds,” with respect to any issuance or sale of Capital Stock, means the cash
proceeds of such issuance or sale net of attorneys’ fees, accountants’ fees, underwriters’ or
placement agents’ fees, listing fees, discounts or commissions and brokerage, consultant and other
fees and charges actually Incurred in connection with such issuance or sale and net of taxes paid
or payable as a result of such issuance or sale (after taking into account any available tax credit
or deductions and any tax sharing arrangements).

          “Net Insurance Proceeds” means any awards or proceeds in respect of any casualty insurance or
title insurance claim relating to any Collateral deposited in a Collateral Account pursuant to the
Security Documents.

          “Newport Beach Property” means the real property owned by the Company located at 4311-4321
Jamboree Road, Newport Beach, California 92660, including all fixtures and improvements thereon.

          “Non-Recourse Debt” means Indebtedness of a Person:

	 	(1)	 	as to which neither the Company nor any Restricted Subsidiary (a) provides any
Guarantee or credit support of any kind (including any undertaking, guarantee,
indemnity, agreement or instrument that would constitute Indebtedness) or (b) is
directly or indirectly liable (as a guarantor or otherwise); and
	 
	 	(2)	 	no default with respect to which (including any rights that the holders thereof
may have to take enforcement action against an Unrestricted Subsidiary) would permit
(upon notice, lapse of time or both) any holder of any other Indebtedness of the
Company or any Restricted Subsidiary to declare a default under such other Indebtedness
or cause the payment thereof to be accelerated or payable prior to its Stated Maturity.

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

          “Obligations” means any principal, interest, penalties, fees, expenses, indemnifications,
reimbursements, damages and other liabilities (including all interest, fees and expenses accruing
after the commencement of any insolvency or liquidation proceeding, even if such interest, fees and
expenses are not enforceable, allowable or allowed as a claim in such proceeding) under any

24

 

Shared
Lien Documents, Revolving Credit Debt documents or Qualified Receivables Transaction documents, as
the case may be.

          “Offering Circular” means the final Offering Circular dated as of March 3, 2010 relating to
the offering of the Notes.

          “Officer” means the Chairman of the Board, the Chief Executive Officer, the President, the
Chief Financial Officer, any Vice President, the Treasurer or the Secretary of the Company. Officer
of any Subsidiary Guarantor has a correlative meaning.

          “Officers’ Certificate” means a certificate signed by two Officers or by an Officer and either
an Assistant Treasurer or an Assistant Secretary of the Company. One of the officers executing an
Officer’s Certificate in accordance with Section 3.18 shall be the chief executive,
financial or operating officer of the Company.

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

          “Participant” means, with respect to DTC (or any and all successors thereto acting as
depositary hereunder), Euroclear or Clearstream, a Person who has an account with DTC, Euroclear or
Clearstream, respectively (and, with respect to DTC, shall include Euroclear and Clearstream).

          “Permitted Investment” means with respect to the Company or any Restricted Subsidiary:

	 	(1)	 	Investments in the Company or a Restricted Subsidiary (other than a Receivables
Entity);
	 
	 	(2)	 	cash, Cash Equivalents and Marketable Securities;
	 
	 	(3)	 	Investments in another Person if as a result of such Investment:

	 	(i)	 	such other Person becomes a Restricted Subsidiary; or
	 
	 	(ii)	 	such other person is merged, consolidated or amalgamated with
or into, or in one or a series of related transactions transfers or conveys all
or substantially all its assets to, or is liquidated into, the Company or a
Restricted Subsidiary (other than a Receivables Entity);

	 	 	 	provided, however, in either case, that such Person’s primary business is a
Related Business;
	 
	 	(4)	 	Investments made as a result of the receipt of non-cash consideration from an
Asset Disposition that was made pursuant to and in compliance with Section 3.5;
	 
	 	(5)	 	Investments in existence on the Issue Date;

25

 

	 	(6)	 	Investments to the extent made in exchange for the issuance of Capital Stock of
the Company (other than Disqualified Stock);
	 
	 	(7)	 	any Investments received in compromise or resolution of (a) obligations of
trade creditors or customers that were Incurred in the ordinary course of business of
the Company or any of its Restricted Subsidiaries, including pursuant to any plan of
reorganization or similar arrangement upon the bankruptcy or insolvency of any trade
creditor or customer, or (b) litigation, arbitration or other disputes with Persons who
are not Affiliates;
	 
	 	(8)	 	advances or extensions of credit on terms customary in the industry in the form
of accounts or other receivables incurred, and loans and advances made in settlement of
such accounts receivable, all in the ordinary course of business;
	 
	 	(9)	 	Hedging Obligations Incurred in compliance with Section 3.2;
	 
	 	(10)	 	Investments acquired by the Company or any Restricted Subsidiary as a result of
a foreclosure by the Company or any such Restricted Subsidiary with respect to any
secured Investment or other transfer of title with respect to any secured Investment in
default;
	 
	 	(11)	 	Guarantees issued in accordance with Section 3.2;
	 
	 	(12)	 	loans or advances to employees, officers or directors of the Company or any
Restricted Subsidiary in the ordinary course of business consistent with past practices
in an aggregate amount not in excess of $5.0 million with respect to all loans or
advances at any time outstanding; provided, however, that the Company and its
Subsidiaries will comply in all material respects with the provisions of the
Sarbanes-Oxley Act of 2002, as amended, and the rules and regulations promulgated in
connection therewith relating to the provision of such loans and advances;
	 
	 	(13)	 	Investments in the Notes;
	 
	 	(14)	 	any Investment consisting of the contribution of intellectual property in the
ordinary course of business;
	 
	 	(15)	 	Investments by the Company or any of its Restricted Subsidiaries, together with
all other Investments pursuant to this clause (15), in an aggregate amount at the time
of such Investment not to exceed $25.0 million outstanding at any one time (with the
fair market value of such Investment being measured at the time made and without giving
effect to subsequent changes in value);
	 
	 	(16)	 	Investments by the Company or a Restricted Subsidiary in a Receivables Entity
or any Investment by a Receivables Entity in any other Person, in each case, in
connection with a Qualified Receivables Transaction, provided, however, that any
Investment in any such Person is in the form of a Purchase Money Note, or any equity
interest or interests in Receivables and related assets generated by the

26

 

	 	 	 	Company or a
Restricted Subsidiary and transferred to any Person in connection with a Qualified
Receivables Transaction or any such Person owning such Receivables;
	 
	 	(17)	 	receivables owing to the Company or any Restricted Subsidiary created or
acquired in the ordinary course of business and payable or dischargeable in accordance
with customary trade terms; provided, however, that such trade terms may include such
concessionary trade terms as the Company or any such Restricted Subsidiary deems
reasonable under the circumstances;
	 
	 	(18)	 	payroll, travel and similar advances to cover matters that are expected at the
time of such advances ultimately to be treated as expenses for accounting purposes and
that are made in the ordinary course of business; and
	 
	 	(19)	 	any Asset Swap made in accordance with Section 3.5.
	 
	 	“Permitted Liens” means, with respect to any Person:

	 	(1)	 	Liens on ABL Collateral securing (a) Revolving Credit Debt and/or Indebtedness
with respect to a Qualified Receivables Transaction that, in each case, was permitted
to be Incurred pursuant to clause (1) of the definition of Permitted Debt, and (b) all
related Obligations (including Hedging Obligations and Banking Obligations with respect
thereto);
	 
	 	(2)	 	Shared Liens securing (a) Shared Lien Debt that was permitted to be Incurred
pursuant to clause (1) or clauses (2)(i) or 2(ii) of the definition of Permitted Debt
and (b) all other Shared Lien Obligations;
	 
	 	(3)	 	Liens securing Indebtedness or other obligations of a Restricted Subsidiary
(other than a Subsidiary Guarantor) owing to the Company or another Restricted
Subsidiary (other than a Receivables Entity);
	 
	 	(4)	 	Liens on property of a Person at the time such Person becomes a Restricted
Subsidiary or is merged with or into or consolidated with the Company or any Restricted
Subsidiary; provided that such Liens are not created, Incurred or assumed in connection
with, or in contemplation of, such Person becoming a Restricted Subsidiary of the
Company or such merger or consolidation and do not extend to any assets other than
those of the Person that becomes a Restricted Subsidiary of the Company or is merged
with or into or consolidated with the Company or any of its Restricted Subsidiaries;
	 
	 	(5)	 	Liens on property at the time the Company or a Restricted Subsidiary acquired
the property, including any acquisition by means of a merger or consolidation with or
into the Company or any Restricted Subsidiary; provided, however, that such Liens are
not created, Incurred or assumed in connection with, or in contemplation of, such
acquisition; provided, further, that such Liens may not extend to any other property
owned by the Company or any Restricted Subsidiary;

27

 

	 	(6)	 	Liens arising in the ordinary course of business (a) to secure payments of
workers’ compensation, unemployment insurance, pension or other social security or
retirement benefits, or to secure the performance of bids, tenders, leases, progress
payments, contracts (other than for the payment of money) or to secure public or
statutory obligations of the Company or any Restricted Subsidiary, or to secure surety,
judgment or appeal bonds, performance bonds, bids, trade contracts or other obligations
of a like nature incurred in the ordinary course of business to which the Company or
any Restricted Subsidiary is a party, (b) imposed by law dealing with materialmen’s,
mechanics’, workmen’s, repairmen’s, warehousemen’s, landlords’, vendors’ or carriers’
liens created by law, or deposits or pledges that are not yet due or, if due, the
validity of which is being contested in good faith by the Company or any Restricted
Subsidiary by appropriate proceedings promptly instituted and diligently conducted and
against which the Company has established appropriate reserves in accordance with GAAP
and (c) similar Liens that are imposed by applicable law;
	 
	 	(7)	 	Liens arising out of conditional sale, retention, consignment or similar
arrangements, incurred in the ordinary course of business, for the sale of goods;
	 
	 	(8)	 	Liens required by any contract or statute in order to permit the Company or a
Restricted Subsidiary to perform any contract or subcontract made by, with or at the
request of the United States or any state, or any department, agency, instrumentality
or political subdivision of any of the foregoing or the District of Columbia;
	 
	 	(9)	 	Liens for taxes, assessments, fees or other governmental charges not yet
subject to penalties for non-payment or which are being contested in good faith by
appropriate proceedings provided appropriate reserves required pursuant to GAAP have
been made in respect thereof;
	 
	 	(10)	 	judgment Liens not giving rise to an Event of Default;
	 
	 	(11)	 	Liens (other than Shared Liens) securing Refinancing Indebtedness permitted to
be Incurred under this Indenture; provided that (a) any such Lien is limited to all or
part of the same property or assets (plus improvements, accessions, proceeds or
dividends or distributions in respect thereof) that secured (or, under the written
arrangements under which the original Lien arose, could secure) the Indebtedness being
refinanced or is in respect of property that is the security for a Permitted Lien
hereunder and (b) the Indebtedness secured by the new Lien is not increased to any
amount greater than the sum of (i) the outstanding principal amount, or, if greater,
committed amount, of the Indebtedness renewed, refunded, refinanced, replaced, defeased
or discharged with such Refinancing Indebtedness and (ii) an amount necessary to pay
any fees and expenses, including premiums, related to such renewal, refunding,
refinancing, replacement, defeasance or discharge;
	 
	 	(12)	 	Liens in favor of issuers of surety or performance bonds or letters of credit
or bankers’ acceptances issued pursuant to the request of and for the account of such

28

 

	 	 	 	Person in the ordinary course of its business, including Liens on cash or Cash
Equivalents deposited in bank and similar accounts to secure such letters of credit,
surety or performance bonds or bankers’ acceptances; provided, however, that if and to
the extent such bond, letter of credit or bank guarantee is drawn upon, such drawing is
reimbursed no later than the 30th Business Day following a demand for reimbursement
following payment on the bond, letter of credit or bank guarantee;
	 
	 	(13)	 	Liens arising solely by virtue of any statutory or common law provisions
relating to banker’s Liens, rights of set-off or similar rights and remedies as to
deposit accounts or other funds maintained with a depositary institution; provided
that:

	 	(i)	 	such deposit account is not a dedicated cash collateral account
and is not subject to restrictions against access by the Company in excess of
those set forth by regulations promulgated by the Federal Reserve Board; and
	 
	 	(ii)	 	such deposit account is not intended by the Company or any
Restricted Subsidiary to provide collateral to the depository institution;

	 	(14)	 	Liens upon specific items of inventory or other goods and proceeds thereof of
any Person securing such Person’s obligations in respect of bankers’ acceptances issued
or created for the account of such Person to facilitate the purchase, shipment or
storage of such inventory or other goods;
	 
	 	(15)	 	Liens, not in respect of Indebtedness, arising from Uniform Commercial Code
financing statements for informational purposes with respect to operating leases
entered into by the Company or any of its Restricted Subsidiaries in the ordinary
course of business and not otherwise prohibited by this Indenture;
	 
	 	(16)	 	Liens for the purpose of securing Indebtedness represented by Capitalized Lease
Obligations, mortgage financings, purchase money obligations or other payments Incurred
to finance all or any part of the purchase price or cost of construction or improvement
of assets or property (other than Capital Stock or other Investments) acquired,
constructed or improved in the ordinary course of business; provided that:

	 	(i)	 	the aggregate principal amount of Indebtedness secured by such
Liens is otherwise permitted to be Incurred under this Indenture and does not
exceed the cost of the assets or property so acquired, constructed or improved;
and
	 
	 	(ii)	 	such Liens are created within 180 days of construction,
acquisition or improvement of such assets or property and do not encumber any
other assets or property of the Company or any Restricted Subsidiary other than
such assets or property and assets affixed or appurtenant thereto;

	 	(17)	 	deposits made in the ordinary course of business to secure liability to
insurance carriers other than in connection with financing premiums;

29

 

	 	(18)	 	Liens under licensing agreements for use of intellectual property entered into
in the ordinary course of business;
	 
	 	(19)	 	any interest or title of a lessor or lessee or sublessor or sublessee under any
operating lease entered into by the Company or any Restricted Subsidiary in the
ordinary course of business;
	 
	 	(20)	 	Liens in favor of customs and revenue authorities arising as a matter of law to
secure payment of customs duties in connection with the importation of goods;
	 
	 	(21)	 	leases, licenses, subleases and sublicenses of assets (including, without
limitation, real property and intellectual property rights) which do not secure any
Indebtedness and which do not materially interfere with the ordinary conduct of the
business of the Company or any of its Restricted Subsidiaries;
	 
	 	(22)	 	encumbrances, ground leases, easements or reservations of, or rights of others
for, licenses, rights of way, sewers, electric lines, telegraph and telephone lines and
other similar purposes, or zoning, building codes or other restrictions (including,
without limitation, minor defects or irregularities in title and similar encumbrances)
as to the use of real properties or liens incidental to the conduct of the business of
such Person or to the ownership of its properties which do not in the aggregate
materially adversely affect the value of said properties or materially impair their use
in the operation of the business of such Person;
	 
	 	(23)	 	Liens on property of the Company or any Restricted Subsidiary that are the
subject of a Sale/Leaseback Transaction securing Attributable Indebtedness Incurred in
connection with such Sale/Leaseback Transaction; provided that the Net Available Cash
from such Sale/ Leaseback Transaction is applied in accordance with Section
3.5; and
	 
	 	(24)	 	Liens created on assets (other than Collateral or ABL Collateral) in
substitution of or as replacements for any Liens permitted pursuant to this definition;
provided, however that, based on a good faith determination of an Officer of the
Company, the fair market value of the assets encumbered under any such substitute or
replacement Lien is not greater than the fair market value of the assets encumbered by
the otherwise Permitted Lien which is being replaced.

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

          “Preferred Stock,” as applied to the Capital Stock of any corporation, means Capital Stock of
any class or classes (however designated) which is preferred as to the payment of dividends, or as
to the distribution of assets upon any voluntary or involuntary liquidation or dissolution of such
corporation, over shares of Capital Stock of any other class of such corporation.

30

 

          “Purchase Money Note” means a promissory note of a Receivables Entity evidencing the deferred
purchase price of Receivables (and related assets) and a line of credit, which may be irrevocable,
from the Company or any Restricted Subsidiary in connection with a Qualified Receivables
Transaction with a Receivables Entity, which deferred purchase price or line is repayable from cash
available to the Receivables Entity, other than amounts required to be established as reserves
pursuant to agreements, amounts paid to investors in respect of interest, principal and other
amounts owing to such investors and amounts owing to such investors and amounts paid in connection
with the purchase of newly generated Receivables.

          “QIB” means any “qualified institutional buyer” as such term is defined in Rule 144A.

          “Qualified Receivables Transaction” means (1) any transaction relating to the Loan and
Security Agreement, dated as of December 22, 2009, between Conexant CF and Silicon Valley Bank, as
in effect from time to time and as may be modified, amended or extended, in each case to the extent
permitted by this Indenture, and (2) any other transaction or series of transactions that may be
entered into by the Company or any of its Restricted Subsidiaries pursuant to which the Company or
any of its Restricted Subsidiaries may sell, convey or otherwise transfer to (a) a Receivables
Entity (in the case of a transfer by the Company or any of its Restricted Subsidiaries) and (b) any
other Person (in the case of a transfer by a Receivables Entity), or may grant a security interest
in, any Receivables (whether now existing or arising in the future) of the Company or any of its
Restricted Subsidiaries, and any assets related thereto, including, without limitation, all
collateral securing such Receivables, all contracts and all guarantees or other obligations in
respect of such accounts receivable, the proceeds of such Receivables and other assets which are
customarily transferred (as determined by an Officer’s Certificate at the time the applicable
facility providing for Qualified Receivables Transactions is established), or in respect of which
security interests are customarily granted (as determined by an Officer’s Certificate at the time
the applicable facility providing for Qualified Receivables Transactions is established), in
connection with an asset securitization involving Receivables; provided, that any such transaction
is without recourse to the Company or to any other Restricted Subsidiary of the Company or their
assets (other than the applicable Receivables Entity and its assets and, as to the Company or any
Restricted Subsidiary of the Company, other than pursuant to representations, warranties, covenants
and indemnities customary for such transactions) and is not guaranteed by any such Person.

          “Qualified Related Receivable Rights ” means, with respect to a Receivable, whether now
existing or hereafter acquired or arising, those property and related rights that are customarily
sold, conveyed or otherwise transferred (as determined by an Officer’s Certificate at the time the
applicable facility providing for Qualified Receivable Transaction is established) to a Receivables
Entity in connection with an asset securitization involving Receivables including, without
limitation, (a) the goods represented by such Receivable and all goods returned by or reclaimed,
repossessed or recovered from the debtor of such Receivable, (b) all books and records relating
such Receivable, (c) rights in and to any contract or agreement which gives rise to such
Receivable, (d) all accounts, instruments, general intangibles, documents, chattel paper and letter
of credit rights related to such Receivable, (e) all of the collections or payments received and
all rights to receive payment and collections on such Receivable, (f) any rights of stoppage in
transit, replevin, and reclamation relating to such goods or Receivable, (g) rights in and to all
security for such goods or the payment of such Receivable and guaranties thereof, (h)

31

 

any
collections or casualty insurance proceeds or proceeds from any receivables or other insurance
collected or paid on account of such Receivable or any of the foregoing, and (g) any rights against
third parties with respect thereto.

          “Receivable” means a right to receive payment arising from a sale or lease of goods (other
than in respect of goods constituting Collateral which are not Inventory) or the performance of
services by a Person pursuant to an arrangement with another Person pursuant to which such other
Person is obligated to pay for such goods or services under terms that permit the purchase of such
goods and services on credit and will include, in any event, any items of property received in
respect of the sale or lease of such goods or services that would be classified as an “account,”
“chattel paper,” “payment intangible” or “instrument” under the Uniform Commercial Code as in
effect in the State of New York.

          “Receivables Entity” means (a) Conexant CF and (b) any other Subsidiary (or another Person in
which the Company or any Restricted Subsidiary makes an Investment and to which the Company or any
Restricted Subsidiary transfers Receivables and related assets) which engages in no activities
other than in connection with the financing of Receivables and which, in the case of any Person
other than Conexant CF, is designated by the Board of Directors of the Company (as provided below)
as a Receivables Entity:

	 	(1)	 	no portion of the Indebtedness or any other obligations (contingent or
otherwise) of which:

	 	(i)	 	is guaranteed by the Company or any Restricted Subsidiary
(excluding guarantees of obligations (other than the principal of, and interest
on, Indebtedness) pursuant to Standard Securitization Undertakings);
	 
	 	(ii)	 	is recourse to or obligates the Company or any Restricted
Subsidiary in any way other than pursuant to Standard Securitization
Undertakings; or
	 
	 	(iii)	 	subjects any property or asset of the Company or any
Restricted Subsidiary, directly or indirectly, contingently or otherwise, to
the satisfaction thereof, other than pursuant to Standard Securitization
Undertakings;

	 	(2)	 	with which neither the Company nor any Restricted Subsidiary has any material
contract, agreement, arrangement or understanding (except in connection with a Purchase
Money Note or Qualified Receivables Transaction) other than on terms no less favorable
to the Company or such Restricted Subsidiary than those that might be obtained at the
time from Persons that are not Affiliates of the Company, other than fees payable in
the ordinary course of business in connection with servicing Receivables; and
	 
	 	(3)	 	to which neither the Company nor any Restricted Subsidiary has any obligation
to maintain or preserve such entity’s financial condition or cause such entity to
achieve certain levels of operating results.

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Any such designation by the Board of Directors of the Company will be evidenced to the Trustee by
filing with the Trustee a certified copy of the resolution of the Board of Directors of the Company
giving effect to such designation and an Officers’ Certificate certifying that such designation
complied with the foregoing conditions.

          “Receivables Fees” means any fees, commissions, yields or interest paid to purchasers or
lenders providing the financing in connection with a Qualified Receivables Transaction, factoring
agreement or other similar agreement, including any such amounts paid by discounting the face
amount of Receivables or participations therein transferred in connection with a Qualified
Receivables Transaction, factoring agreement or other similar arrangement, regardless of whether
any such transaction is structured as on-balance sheet or off-balance sheet or through a Restricted
Subsidiary or an Unrestricted Subsidiary.

          “Receivables Transaction Amount” means the amount of obligations outstanding under the legal
documents entered into as part of such Qualified Receivables Transaction on any date of
determination that would be characterized as principal if such Qualified Receivables Transaction
were structured as a secured lending transaction rather than as a purchase.

          “Records” has the meaning assigned thereto in the Uniform Commercial Code as in effect in the
State of New York.

          “Recovery Event” means any event, occurrence, claim or proceeding that results in any Net
Award or Net Insurance Proceeds being deposited into a Collateral Account pursuant to the Security
Documents.

          “Redemption Date” means, with respect to any redemption of Notes, the date of redemption with
respect thereto.

          “Refinancing Indebtedness” means Indebtedness (other than Shared Lien Debt) that is Incurred
to refund, refinance, replace, exchange, renew, repay or extend (including pursuant to any
defeasance or discharge mechanism) (collectively, “refinance,” “refinances” and “refinanced” will
each have a correlative meaning) any Indebtedness existing on the Issue Date or Incurred in
compliance with this Indenture (including Indebtedness of the Company that refinances Indebtedness
of any Restricted Subsidiary and Indebtedness of any Restricted Subsidiary that refinances
Indebtedness of another Restricted Subsidiary) including Indebtedness that refinances Refinancing
Indebtedness, provided, however, that:

	 	(1)	 	(a) if the Stated Maturity of the Indebtedness being refinanced is earlier than
the Stated Maturity of the Notes, the Refinancing Indebtedness has a Stated Maturity no
earlier than the Stated Maturity of the Indebtedness being refinanced or (b) if the
Stated Maturity of the Indebtedness being refinanced is later than the Stated Maturity
of the Notes, the Refinancing Indebtedness has a Stated Maturity at least 91 days later
than the Stated Maturity of the Notes;
	 
	 	(2)	 	the Refinancing Indebtedness has an Average Life at the time such Refinancing
Indebtedness is Incurred that is equal to or greater than the Average Life of the
Indebtedness being refinanced;

33

 

	 	(3)	 	such Refinancing Indebtedness is Incurred in an aggregate principal amount (or
if issued with original issue discount, an aggregate issue price) that is equal to or
less than the sum of the aggregate principal amount (or if issued with original issue
discount, the aggregate accreted value) then outstanding of the Indebtedness being
refinanced (plus, without duplication, any additional Indebtedness Incurred to pay
interest or premiums required by the instruments governing such existing Indebtedness
and fees Incurred in connection therewith);
	 
	 	(4)	 	if the Indebtedness being refinanced is subordinated in right of payment to the
Notes or the Subsidiary Guarantee, such Refinancing Indebtedness is subordinated in
right of payment to the Notes or the Subsidiary Guarantee on terms at least as
favorable to the Holders as those contained in the documentation governing the
Indebtedness being extended, refinanced, renewed, replaced, defeased or refunded; and
	 
	 	(5)	 	if the Indebtedness being refinanced is secured, the Lien securing Refinancing
Indebtedness Incurred to refinance Indebtedness that was previously so secured is no
less favorable to the Holders and is no more favorable to the lienholder with respect
to such Lien than the Lien in respect of the Indebtedness being refinanced.

          “Regulation S” means Regulation S under the Securities Act.

          “Related Business” means any business which is the same as or related, ancillary or
complementary to, or a reasonable extension of, any of the businesses of the Company and its
Restricted Subsidiaries on the Issue Date, including the development of any of its assets.

          “Related Business Assets” means assets used or useful in a Related Business.

          “Related Inventory Rights” means, with respect to any Inventory, any “supporting obligations”
(as defined in the Uniform Commercial as in effect in the State of New York) related thereto, any
documents of title for such Inventory, all Records in respect thereof, any commercial tort claims
or other claims and causes of action to the extent related primarily to such Inventory and any
substitutions, replacements, accessions, products and proceeds thereof, provided in no event shall
Related Inventory Rights include intellectual property of the Grantors (for absence of doubt, this
proviso shall not prevent the grant of a non-exclusive license in intellectual property of the
Grantors).

          “Related Receivable Rights” means, with respect to any Receivable, any “supporting
obligations” (as defined in the Uniform Commercial Code as in effect in the State of New York)
related thereto, all Records in respect thereof, any commercial tort claims or other claims and
causes of action to the extent related primarily to such Receivable and any substitutions,
replacements, accessions, products and proceeds thereof.

          “Restoration” has the meaning ascribed to it in the applicable Security Document.

          “Restricted Investment” means any Investment other than a Permitted Investment.

34

 

          “Restricted Period”, with respect to any Regulation S Notes, means the period of
40 consecutive days beginning on and including the later of (A) the day on which the Notes are
first offered to Persons other than distributors (as defined in Regulation S), notice of which day
shall be promptly given by the Company to the Trustee, and (B) the issue date with respect to such
Notes.

          “Restricted Notes” means Notes bearing the Restricted Notes Legend.

          “Restricted Notes Legend” means the legend set forth in Section 2.1(d)(1).

          “Restricted Subsidiary” means any Subsidiary of the Company other than an Unrestricted
Subsidiary.

          “Revolving Credit Debt” means revolving credit Indebtedness Incurred pursuant to clause (1) of
the definition of Permitted Debt that is secured, in whole or in part, by ABL Collateral, and that
is designated as “Revolving Credit Debt” in an Officers’ Certificate delivered to the Trustee and
the Collateral Trustee (provided, that no Shared Lien Debt may be designated as “Revolving Credit
Debt”).

          “Rule 144A” means Rule 144A under the Securities Act.

          “Sale/Leaseback Transaction” means any arrangement with any Person providing for the leasing
by the Company or any Restricted Subsidiary of any properties or assets of the Company and/or such
Restricted Subsidiary (except for leases between the Company and any Restricted Subsidiary, or
between Restricted Subsidiaries), which properties or assets have been or are to be sold or
transferred by the Company or such Restricted Subsidiary to such Person and as to which the Company
or such Restricted Subsidiary takes back a lease of such properties or assets.

          “SEC” means the United States Securities and Exchange Commission.

          “Securities Act” means the Securities Act of 1933, as amended, and the rules and regulations
of the SEC promulgated thereunder.

          “Securities Custodian” means the Custodian with respect to the Global Notes (as appointed by
DTC), or any successor Person thereto and shall initially be the Trustee.

          “Securities Register” means the register of Notes, maintained by the Registrar, pursuant to
Section 2.3.

          “Security Documents” means the Collateral Trust Agreement, each Lien Sharing and Priority
Confirmation and all security agreements, intercreditor agreements, pledge agreements, collateral
assignments, mortgages, deeds of trust, collateral agency agreements, control agreements or other
grants or transfers for security executed and delivered by any Grantor creating (or purporting to
create) a Lien on Collateral in favor of the Collateral Trustee, for the benefit of the holders of
Shared Lien Obligations, in each case, as amended, modified, renewed, restated or replaced, in
whole or in part, from time to time, in accordance with Article IX.

35

 

          “Series of Shared Lien Obligations” means, severally, the Notes, and any Additional Notes
(other than Additional Notes with the same CUSIP number as the Notes) or other Indebtedness
(including Hedging Obligations) under any other indenture or agreement for which a separate
transfer register is maintained or that otherwise constitutes a distinct class or series of Shared
Lien Obligations.

          “Shared Lien” means a Lien granted by a Security Document to the Collateral Trustee, at any
time, upon any property of any Grantor to secure Shared Lien Obligations.

          “Shared Lien Debt” means:

          (1) the Initial Notes; and

          (2) additional notes issued under any indenture (including any Additional Notes) or other
Indebtedness (including, without duplication, letters of credit and reimbursement obligations with
respect thereto but excluding Hedging Obligations) of any Grantor that is secured equally and
ratably with the Notes in accordance with the terms of the Collateral Trust Agreement by a Lien
that is permitted to be Incurred and so secured under each applicable Shared Lien Document;
provided that, in the case of any Indebtedness referred to in this clause (2) (other than
Additional Notes), that:

          (a) on or before the date on which such Indebtedness is Incurred by the Company, such
Indebtedness is designated by the Company or any other Grantor, in an Officers’ Certificate
delivered to each Shared Lien Representative and the Collateral Trustee, as “Shared Lien Debt” for
the purposes of the Shared Lien Documents (provided that no Indebtedness may be designated as both
“Shared Lien Debt” and “Revolving Credit Debt”);

          (b) the Shared Lien Representative for such Indebtedness executes a joinder in the form
required under the Collateral Trust Agreement and such Indebtedness is governed by a credit
agreement or other agreement that includes a Lien Sharing and Priority Confirmation; and

          (c) all requirements set forth in the Collateral Trust Agreement as to the confirmation, grant
or perfection of the Collateral Trustee’s Lien to secure such Indebtedness or Obligations in
respect thereof are satisfied (and the satisfaction of such requirements and the other provisions
of this clause (c) will be conclusively established if the Company delivers to the Collateral
Trustee an Officers’ Certificate stating that such requirements and other provisions have been
satisfied and that such Indebtedness is “Shared Lien Debt”).

          For the avoidance of doubt, Banking Product Obligations and Hedging Obligations do not
constitute Shared Lien Debt, but may constitute Shared Lien Obligations.

          “Shared Lien Documents” means, collectively, this Indenture and any additional indenture,
credit agreement or other agreement governing each Series of Shared Lien Obligations and the
Security Documents.

          “Shared Lien Obligations” means (1) Shared Lien Debt and all other Obligations in respect
thereof, (2) Hedging Obligations that are secured, or intended to be secured, under the Security
Documents if (a) the provider of such Hedging Obligations has agreed to be bound by

36

 

the terms of
the Collateral Trust Agreement as a holder of Shared Lien Obligations in accordance with the terms
of the Collateral Trust Agreement, or (b) if such provider’s interest in the Collateral is subject
to the terms of the Collateral Trust Agreement as a holder of Shared Lien Obligations under the
terms of a Shared Lien Document with respect to Shared Lien Debt, pursuant to which such provider
is represented by the Shared Lien Representative for such Shared Lien Debt, (3) Banking Product
Obligations Incurred in the ordinary course of business that are secured, or intended to be
secured, under the Security Documents if (a) the Holder of such Banking Product Obligations has
agreed to be bound by the terms of the Collateral Trust Agreement as a holder of Shared Lien
Obligations in accordance with the terms of the Collateral Trust Agreement, or (b) if such holder’s
interest in the Collateral is subject to the terms of the Collateral Trust Agreement as a holder of
Shared Lien Obligations under the terms of a Shared Lien Document with respect to Shared Lien Debt,
pursuant to which such holder is represented by the Shared Lien Representative for such Shared Lien
Debt and (4) each Guarantee by any Grantor of the Obligations described in clauses (1), (2) or (3)
of this definition that is secured equally and ratably with the Notes by a Shared Lien that is
permitted to be Incurred and so secured under each applicable Shared Lien Document.

          “Shared Lien Refinancing Debt” means Shared Lien Debt that is incurred:

          (1) to refund, refinance, replace, exchange, renew, repay or extend (including pursuant to any
defeasance or discharge mechanism) the Notes or other Indebtedness incurred pursuant to clause
(2)(i) of the definition of Permitted Debt; and

          (2) in an aggregate principal amount (or if issued with original issue discount, an aggregate
issue price) that is equal to or less than the sum of the aggregate principal amount (or if issued
with original issue discount, the aggregate accreted value) then outstanding of the Notes or other
Indebtedness being refinanced (plus, without duplication, any additional Indebtedness Incurred to
pay interest or premiums required by the instruments governing such existing Indebtedness and fees
Incurred in connection therewith).

          “Shared Lien Representative” means (1) the Trustee, in the case of the Notes, or (2) in the
case of any other Series of Shared Lien Obligations, the trustee, agent, dealer, provider or other
representative of the holders of such Series of Shared Lien Obligations who maintains the transfer
register, if any, for such Series of Shared Lien Obligations and serves as a representative of the
applicable Series of Shared Lien Obligations (for purposes related to the administration of the
security documents) pursuant to the indenture, credit agreement, Hedge Agreement or other agreement
governing such Series of Shared Lien Obligations, together with its successors in such capacity.

          “Significant Subsidiary” means any Subsidiary that satisfies the criteria for a “significant
subsidiary” as defined in Article 1, Rule 1-02 of Regulation S-X, promulgated pursuant to the
Securities Act, as such Regulation is in effect on the Issue Date.

          “Standard Securitization Undertakings” means representations, warranties, covenants,
repurchase obligations and indemnities entered into by the Company or any Restricted Subsidiary
which are reasonably customary in Qualified Receivables Transactions.

37

 

          “Stated Maturity” means, with respect to any security, the date specified in such security as
the fixed date on which the payment of principal of such security is due and payable, including
pursuant to any mandatory redemption provision, but will not include any date on which the payment
of principal of such security is due and payable as a result of any contingent obligations to
repay, redeem or repurchase any such principal prior to the date originally scheduled for the
payment thereof.

          “Subsidiary” of any Person at any date means:

	 	(1)	 	any corporation, association or other business entity (other than a
partnership, joint venture, limited liability company or similar entity) of which
ownership interests representing more than 50% of the total voting power of shares of
Capital Stock entitled (without regard to the occurrence of any contingency) to vote in
the election of directors, managers or trustee of the corporation, association or other
business entity is at the time owned by that Person or one or more of the other
Subsidiaries of that Person (or a combination thereof); and
	 
	 	(2)	 	any partnership, joint venture limited liability company or similar entity of
which more than 50% of the capital accounts, distribution rights, total equity and
voting interests or general or limited partnership interests, as applicable, is at the
time owned or controlled, directly or indirectly, by (a) such Person, (b) such Person
and one or more Subsidiaries of such Person or (c) one or more Subsidiaries of such
Person.
	 
	 	 	 	Unless otherwise specified herein, each reference to a Subsidiary
will refer to a Subsidiary of the Company.

          “Subsidiary Guarantee” means, individually, any Guarantee of payment of the Notes by a
Subsidiary Guarantor pursuant to the terms of this Indenture and any supplemental indenture
thereto, and, collectively, all such Guarantees.

          “Subsidiary Guarantor” means each of Conexant, Inc., Brooktree Broadband Holding, Inc. and
Conexant Systems Worldwide, Inc. and any other Subsidiary of the Company that executes a Subsidiary
Guarantee in accordance with the provisions of this Indenture, and their respective successors and
assigns; provided that upon release or discharge of such Subsidiary Guarantor from its Subsidiary
Guarantee in accordance with this Indenture, such Subsidiary shall cease to be a Subsidiary
Guarantor.

          “Treasury Rate” means, as of any redemption date, the yield to maturity as of such redemption
date of United States Treasury securities with a constant maturity (as compiled and published in
the most recent Federal Reserve Statistical Release H.15 (519) that has become publicly available
at least two business days prior to the redemption date (or, if such Statistical Release is no
longer published, any publicly available source of similar market data)) most nearly equal to the
period from the redemption date to March 15, 2013; provided, however, that if the period from the
redemption date to March 15, 2013, is less than one year, the weekly average yield on actually
traded United States Treasury securities adjusted to a constant maturity of one year will be used.

38

 

          “Trust Officer” shall mean, when used with respect to the Trustee, any officer within the
corporate trust department of the Trustee having direct responsibility for the administration of
this Indenture, or any other officer to whom any corporate trust matter is referred because of such
person’s knowledge of and familiarity with the particular subject.

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

          “Uniform Commercial Code” means the Uniform Commercial Code as in effect in the State of New
York.

          “Unrestricted Subsidiary” means:

	 	(1)	 	any Subsidiary of the Company that at the time of determination will be
designated an Unrestricted Subsidiary by the Board of Directors of the Company in the
manner provided below; and
	 
	 	(2)	 	any Subsidiary of an Unrestricted Subsidiary.

          The Board of Directors of the Company may designate any Subsidiary of the Company (including
any newly acquired or newly formed Subsidiary or a Person becoming a Subsidiary through merger or
consolidation or Investment therein) to be an Unrestricted Subsidiary only if:

	 	(1)	 	such Subsidiary or any of its Subsidiaries does not own any Capital Stock or
Indebtedness of or have any Investment in, or own or hold any Lien on any property of,
any other Subsidiary of the Company which is not a Subsidiary of the Subsidiary to be
so designated or otherwise an Unrestricted Subsidiary;
	 
	 	(2)	 	all of the Indebtedness of such Subsidiary and its Subsidiaries will, at the date of
designation, and at all times thereafter, consist of Non-Recourse Debt;
	 
	 	(3)	 	such designation and the Investment of the Company in such Subsidiary complies with
Section 3.3;
	 
	 	(4)	 	such Subsidiary, either alone or in the aggregate with all other Unrestricted
Subsidiaries, does not operate, directly or indirectly, all or substantially all of the
business of the Company and its Subsidiaries;
	 
	 	(5)	 	such Subsidiary is a Person with respect to which neither the Company nor any of its
Restricted Subsidiaries has any direct or indirect obligation:

	 	(i)	 	to subscribe for additional Capital Stock of such Person; or
	 
	 	(ii)	 	to maintain or preserve such Person’s financial condition or to
cause such Person to achieve any specified levels of operating results;

	 	(6)	 	on the date such Subsidiary is designated an Unrestricted Subsidiary, such
Subsidiary is not a party to any agreement, contract, arrangement or

39

 

	 	 	 	understanding with
the Company or any Restricted Subsidiary with terms substantially less favorable to the
Company than those that might have been obtained from Persons who are not Affiliates of
the Company; and
	 
	 	(7)	 	such Subsidiary has not guaranteed or otherwise directly or indirectly provided
credit support for any Indebtedness of the Company or any of its Restricted
Subsidiaries.

          Any such designation by the Board of Directors of the Company will be evidenced to the Trustee
by filing with the Trustee a Board Resolution giving effect to such designation and an Officers’
Certificate certifying that such designation complies with the foregoing conditions. If, at any
time, any Unrestricted Subsidiary would fail to meet the foregoing requirements as an Unrestricted
Subsidiary, it will thereafter cease to be an Unrestricted Subsidiary for purposes of this
Indenture and any Indebtedness of such Subsidiary will be deemed to be Incurred as of such date.

          The Board of Directors of the Company may designate any Unrestricted Subsidiary to be a
Restricted Subsidiary; provided that immediately after giving effect to such designation, no
Default or Event of Default will have occurred and be continuing or would occur as a consequence
thereof and the Company could Incur at least $1.00 of additional Indebtedness pursuant to
Section 3.2(a) on a pro forma basis taking into account such designation.

          “Voting Stock” of a Person means all classes of Capital Stock of such Person then outstanding
that is entitled to vote in the election of directors, managers or trustees, as applicable.

          “Weighted Average Life to Maturity” means, when applied to any Indebtedness at any date, the
number of years obtained by dividing (1) the sum of the products obtained by multiplying (a) the
amount of each then remaining installment, sinking fund, serial maturity or other required payments
of principal (or redemption payments), including payment at final maturity (or mandatory
redemption), in respect of such Indebtedness, by (b) the number of years (calculated to the nearest
one twelfth) that will elapse between such date and the making of such payment, by (2) the then
outstanding principal amount or liquidation preference of such Indebtedness.

          “Wholly Owned Subsidiary” means a Restricted Subsidiary, all of the Capital Stock of which
(other than directors’ qualifying shares) is owned by the Company or another Wholly-Owned
Subsidiary.

          SECTION 1.2. Other Definitions.

	 	 	 
	Term	 	Defined in Section
	“Additional Restricted Notes”
	 	2.1(b)
	“Affiliate Transaction”
	 	3.8(a)
	“Agent”
	 	3.14
	“Agent Members”
	 	2.1(e)(iii)
	“Asset Disposition Offer”
	 	3.5(c)

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	Term	 	Defined in Section
	“Asset Disposition Offer Amount”
	 	3.5(e)
	“Asset Disposition Offer Period”
	 	3.5(e)
	“Asset Disposition Purchase Date”
	 	3.5(e)
	“Authenticating Agent”
	 	2.2
	“Change of Control Offer”
	 	3.11(b)
	“Change of Control Payment”
	 	3.11(a)
	“Change of Control Payment Date”
	 	3.11(b)(ii)
	“Collateral Disposition Offer”
	 	3.5(a)
	“Company Order”
	 	2.2
	“Covenant Defeasance”
	 	8.1(b)(ii)
	“Defaulted Interest”
	 	2.13
	“Early Asset Disposition Offer”
	 	3.5(d)
	“Early Collateral Disposition Offer”
	 	3.5(b)
	“Early Disposition Offer”
	 	3.5(d)
	“Event of Default”
	 	6.1
	“Excess Collateral Proceeds”
	 	3.5(a)
	“Excess Proceeds”
	 	3.5(c)
	“Global Notes”
	 	2.1(b)
	“Guarantor Obligations”
	 	10.1
	“Institutional Accredited Investor Global Note”
	 	2.1(b)
	“Institutional Accredited Investor Notes”
	 	2.1(b)
	“Legal Defeasance”
	 	8.1(b)(i)
	“Legal Holiday”
	 	12.8
	“original
issue discount”
	 	2.1(g)
	“payment default”
	 	6.1(v)(A)
	“Paying Agent”
	 	2.3
	“Permitted Debt”
	 	3.2(b)
	“protected purchaser”
	 	2.9
	“Registrar”
	 	2.3
	“Regulation S Global Note”
	 	2.1(b)
	“Regulation S Notes”
	 	2.1(b)
	“Resale Restriction Termination Date”
	 	2.6(a)
	“Restricted Payment”
	 	3.3(a)(iv)
	“Restricted Notes”
	 	2.1(a)
	“Rule 144A Global Note”
	 	2.1(b)
	“Rule 144A Notes”
	 	2.1(b)
	“Special Interest Payment Date”
	 	2.13(a)
	“Special Record Date”
	 	2.13(a)
	“Successor Company”
	 	4.1(a)(i)

          SECTION 1.3. [Reserved].

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

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

41

 

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

          (3) “including” means including without limitation;

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

          (5) the principal amount of any non-interest bearing or other discount security at any
date shall be the principal amount thereof that would be shown on a balance sheet of the
issuer dated such date prepared in accordance with GAAP;

          (6) the principal amount of any Preferred Stock shall be (i) the maximum liquidation
value of such Preferred Stock or (ii) the maximum mandatory redemption or mandatory
repurchase price with respect to such Preferred Stock, whichever is greater;

          (7) all amounts expressed in this Indenture or in any of the Notes in terms of money
refer to the lawful currency of the United States of America; and

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

ARTICLE II

THE SECURITIES

          SECTION 2.1. Form, Dating and Terms.

          (a) The aggregate principal amount of Notes that may be authenticated and delivered under this
Indenture is unlimited. The Initial Notes issued on the date hereof will be in an aggregate
principal amount of $175,000,000. In addition, the Company may issue, from time to time in
accordance with the provisions of this Indenture, Additional Notes. Furthermore, Notes may be
authenticated and delivered upon registration or transfer, or in lieu of, other Notes pursuant to
Section 2.6, 2.9, 2.11, 5.8 or 9.5 or in connection with a
Change of Control Offer pursuant to Section 3.11 or an Asset Disposition Offer under
Section 3.5.

               The Initial Notes shall be known and designated as “11.25% Senior Secured Notes due 2015” of
the Company. Additional Notes, if any, shall also be known and designated as “11.25% Senior
Secured Notes due 2015” of the Company.

               With respect to any Additional Notes, the Company shall set forth in (a) a Board Resolution of
the Company and (b) (i) an Officers’ Certificate or (ii) one or more indentures supplemental
hereto, the following information:

          (1) the aggregate principal amount of such Additional Notes to be authenticated and
delivered pursuant to this Indenture which may be in an unlimited aggregate principal
amount;

42

 

               (2) the issue price and the issue date of such Additional Notes, including the
date from which interest shall accrue; and

               (3) whether such Additional Notes shall be Restricted Notes.

               The Initial Notes and the Additional Notes shall be considered collectively as a single class
for all purposes of this Indenture. Holders of the Initial Notes, and the Additional Notes will
vote and consent together on all matters to which such Holders are entitled to vote or consent as
one class, and none of the Holders of the Initial Notes and the Additional Notes shall have the
right to vote or consent as a separate class on any matter to which such Holders are entitled to
vote or consent.

               If any of the terms of any Additional Notes are established by action taken pursuant to a
Board Resolution of the Company, a copy of an appropriate record of such action shall be certified
by the Secretary or any Assistant Secretary of the Company and delivered to the Trustee upon
request by the Trustee at or prior to the delivery of the Officers’ Certificate or the indenture
supplemental hereto setting forth the terms of the Additional Notes.

          (b) The Initial Notes are being offered and sold by the Company pursuant to a Purchase
Agreement, dated March 3, 2010, among the Company and the Initial Purchaser. The Initial Notes and
any Additional Notes (if issued as Restricted Notes) (the “Additional Restricted Notes”)
will be resold initially only to (A) QIBs in reliance on Rule 144A and (B) Non-U.S. Persons in
reliance on Regulation S. Such Initial Notes and Additional Restricted Notes may thereafter be
transferred to, among others, QIBs, purchasers in reliance on Regulation S and IAIs in accordance
with Rule 501 of the Securities Act, in each case, in accordance with the procedures described
herein. Additional Notes offered after the date hereof may be offered and sold by the Company from
time to time pursuant to one or more purchase agreements in accordance with applicable law.

               Initial Notes and Additional Restricted Notes offered and sold to QIBs in the United States of
America in reliance on Rule 144A (the “Rule 144A Notes”) shall be issued in the form of a
permanent global Note, without interest coupons, substantially in the form of Exhibit A,
which is hereby incorporated by reference and made a part of this Indenture, including appropriate
legends as set forth under Section 2.1(d) (the “Rule 144A Global Note”), deposited
with the Trustee, as Securities Custodian, duly executed by the Company and authenticated by the
Trustee as hereinafter provided. The Rule 144A Global Note may be represented by more than one
certificate, if so required by DTC’s rules regarding the maximum principal amount to be represented
by a single certificate. The aggregate principal amount of the Rule 144A Global Note may from time
to time be increased or decreased by adjustments made on the Rule 144A Global Note and on the
records of the Trustee, as Securities Custodian or its nominee, as hereinafter provided.

               Initial Notes and Additional Notes offered and sold outside the United States of America (the
"Regulation S Notes”) in reliance on Regulation S shall be issued in the form of a
permanent global Note, without interest coupons, substantially in the form of Exhibit A
including appropriate legends as set forth under Section 2.1(d) and issued in a
denomination equal to the outstanding principal amount of the Notes sold in reliance on Rule 903 of
Regulation

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S (the “Regulation S Global Note”). The Regulation S Global Note will be deposited
upon issuance with the Trustee, as Custodian for DTC, duly executed by the Company and
authenticated by the Trustee as hereinafter provided. During the Restricted Period, interests in
the Regulation S Global Note may be transferred to Non-U.S. Persons pursuant to Regulation S or to
QIBs and IAIs in accordance with this Indenture. The Regulation S Global Note may be represented
by more than one certificate, if so required by DTC’s rules regarding the maximum principal amount
to be represented by a single certificate. The aggregate principal amount of the Regulation S
Global Note may from time to time be increased or decreased by adjustments made on the Regulation S
Global Note and on the records of the Trustee, as Securities Custodian or its nominee, as
hereinafter provided.

               Initial Notes and Additional Notes resold to IAIs (the “Institutional Accredited Investor
Notes”) in the United States of America shall be issued in the form of a permanent global Note,
without interest coupons, substantially in the form of Exhibit A including appropriate
legends as set forth under Section 2.1(d) (the “Institutional Accredited Investor
Global Note”) deposited with the Trustee, as Custodian for DTC, duly executed by the Company
and authenticated by the Trustee as hereinafter provided. The Institutional Accredited Investor
Global Note may be represented by more than one certificate, if so required by DTC’s rules
regarding the maximum principal amount to be represented by a single certificate. The aggregate
principal amount of the Institutional Accredited Investor Global Note may from time to time be
increased or decreased by adjustments made on the Institutional Accredited Investor Note and on the
records of the Trustee, as Securities Custodian or its nominee, as hereinafter provided.

               The Regulation S Notes will be issued in the form of a permanent global Note, without interest
coupons, substantially in the form of Exhibit A, which is hereby incorporated by reference
and made a part of this Indenture, deposited with the Trustee as hereinafter provided, including
the appropriate legend set forth under Section 2.1(d). The Rule 144A Global Note, the
Regulation S Global Note and the Institutional Accredited Investor Global Note are sometimes
collectively herein referred to as the “Global Notes.”

               The principal of (and premium, if any) and interest on the Notes shall be payable as follows:
(i) if the Holder has given wire instructions to the Company, the Company will make payments on
such Holder’s Notes in accordance with those instructions and (ii) all other payments on the Notes
will be made at the office or agency of the Company maintained for such purpose in the Borough of
Manhattan, The City of New York, State of New York, or at such other office or agency of the
Company as may be maintained for such purpose pursuant to Section 2.3, unless the Company
elects to make interest payments by check mailed to addresses of the Persons entitled thereto as
such addresses shall appear on the Securities Register. Payments in respect of Notes represented by
a Global Note (including principal, premium, if any, and interest) will be made by wire transfer of
immediately available funds to the accounts specified by DTC. Payments in respect of Securities
represented by Definitive Notes (including principal, premium, if any, and interest) held by a
Holder of at least $1,000,000 aggregate principal amount of Notes represented by Definitive Notes
will be made by wire transfer to a U.S. dollar account maintained by the payee with a bank in the
United States if such Holder elects payment by wire transfer by giving written notice to the
Trustee or the Paying Agent to

44

 

such effect designating such account no later than 15 days immediately preceding the relevant
due date for payment (or such other date as the Trustee may accept in its discretion).

               The Notes may have notations, legends or endorsements required by law, stock exchange rule or
usage, in addition to those set forth on Exhibit A and under Section 2.1(d). The
Company and the Trustee shall approve the forms of the Notes and any notation, endorsement or
legend on them. Each Note shall be dated the date of its authentication. The terms of the Notes
set forth in Exhibit A are part of the terms of this Indenture and, to the extent
applicable, the Company and the Trustee by their execution and delivery of this Indenture,
expressly agree to be bound by such terms.

          (c) Denominations. The Notes shall be issuable only in fully registered form, without
interest coupons, and only in denominations of $1,000 and an integral multiple thereof.

          (d) Restrictive Legends.

     (1) Unless and until sold under an effective registration statement or earlier removed
in accordance with Section 2.6(c), the Notes (including both Global Notes and
Definitive Notes) shall bear the following legend on the face thereof:

THE NOTES EVIDENCED HEREBY HAVE NOT BEEN REGISTERED UNDER THE UNITED STATES SECURITIES ACT
OF 1933 (THE “SECURITIES ACT”) AND MAY NOT BE OFFERED, SOLD, PLEDGED OR OTHERWISE
TRANSFERRED EXCEPT (A) (1) TO A PERSON WHO THE SELLER REASONABLY BELIEVES IS A QUALIFIED
INSTITUTIONAL BUYER WITHIN THE MEANING OF RULE 144A UNDER THE SECURITIES ACT PURCHASING FOR
ITS OWN ACCOUNT OR FOR THE ACCOUNT OF A QUALIFIED INSTITUTIONAL BUYER IN A TRANSACTION
MEETING THE REQUIREMENTS OF RULE 144A, (2) IN AN OFFSHORE TRANSACTION COMPLYING WITH RULE
903 OR RULE 904 OF REGULATION S UNDER THE SECURITIES ACT, (3) PURSUANT TO AN EXEMPTION FROM
REGISTRATION UNDER THE SECURITIES ACT PROVIDED BY RULE 144 THEREUNDER (IF AVAILABLE), (4) TO
AN INSTITUTIONAL ACCREDITED INVESTOR WITHIN THE MEANING OF RULE 501(A)(1), (2), (3) OR (7)
OF REGULATION D UNDER THE SECURITIES ACT IN A TRANSACTION EXEMPT FROM THE REGISTRATION
REQUIREMENTS OF THE SECURITIES ACT OR (5) PURSUANT TO AN EFFECTIVE REGISTRATION STATEMENT
UNDER THE SECURITIES ACT AND (B) IN ACCORDANCE WITH ALL APPLICABLE SECURITIES LAWS OF THE
STATES OF THE UNITED STATES AND OTHER JURISDICTIONS.

(2) [Reserved].

(3) Each Global Note, whether or not an Initial Note, shall bear the following legend
on the face thereof:

UNLESS THIS CERTIFICATE IS PRESENTED BY AN AUTHORIZED REPRESENTATIVE OF THE DEPOSITORY TRUST
COMPANY, A NEW YORK

45

 

CORPORATION (“DTC”), NEW YORK, NEW YORK, TO THE ISSUER OR ITS AGENT FOR REGISTRATION OF
TRANSFER, EXCHANGE OR PAYMENT, AND ANY CERTIFICATE ISSUED IS REGISTERED IN THE NAME OF CEDE
& CO. OR IN SUCH OTHER NAME AS IS REQUESTED BY AN AUTHORIZED REPRESENTATIVE OF DTC (AND ANY
PAYMENT IS MADE TO CEDE & CO. OR TO SUCH OTHER ENTITY AS IS REQUESTED BY AN AUTHORIZED
REPRESENTATIVE OF DTC), ANY TRANSFER, PLEDGE OR OTHER USE HEREOF FOR VALUE OR OTHERWISE BY
OR TO ANY PERSON IS WRONGFUL INASMUCH AS THE REGISTERED OWNER HEREOF, CEDE & CO., HAS AN
INTEREST HEREIN.

TRANSFERS OF THIS GLOBAL SECURITY SHALL BE LIMITED TO TRANSFERS IN WHOLE, BUT NOT IN PART,
TO DTC, TO NOMINEES OF DTC OR TO A SUCCESSOR THEREOF OR SUCH SUCCESSOR’S NOMINEE, AND
TRANSFERS OF PORTIONS OF THIS GLOBAL SECURITY SHALL BE LIMITED TO TRANSFERS MADE IN
ACCORDANCE WITH THE RESTRICTIONS SET FORTH IN THE INDENTURE REFERRED TO ON THE REVERSE
HEREOF.

          (e) Book-Entry Provisions.

     (i) This Section 2.1(e) shall apply only to Global Notes deposited with the
Trustee, as Custodian for DTC.

     (ii) Each Global Note initially shall (x) be registered in the name of DTC or the
nominee of DTC, (y) be delivered to the Trustee as Securities Custodian and (z) bear legends
as set forth under Section 2.1(d).

     (iii) Members of, or participants in, DTC (“Agent Members”) shall have no
rights under this Indenture with respect to any Global Note held on their behalf by DTC or
by the Trustee as Securities Custodian or under such Global Note, and DTC may be treated by
the Company, the Trustee and any agent of the Company or the Trustee as the absolute owner
of such Global Note for all purposes whatsoever. Notwithstanding the foregoing, nothing
herein shall prevent the Company, the Trustee or any agent of the Company or the Trustee
from giving effect to any written certification, proxy or other authorization furnished by
DTC or impair, as between DTC and its Agent Members, the operation of customary practices of
DTC governing the exercise of the rights of a Holder of a beneficial interest in any Global
Note.

     (iv) In connection with any transfer of a portion of the beneficial interest in a
Global Note pursuant to subsection (f) of this Section 2.1 to beneficial owners who
are required to hold Definitive Notes, the Securities Custodian shall reflect on its books
and records the date and a decrease in the principal amount of such Global Note in an amount
equal to the principal amount of the beneficial interest in the Global Note to be
transferred, and the Company shall execute, and the Trustee shall authenticate and make
available for delivery, one or more Definitive Notes of like tenor and amount.

46

 

     (v) In connection with the transfer of an entire Global Note to beneficial owners
pursuant to subsection (f) of this Section 2.1, such Global Note shall be deemed to
be surrendered to the Trustee for cancellation, and the Company shall execute, and the
Trustee shall authenticate and make available for delivery, to each beneficial owner
identified by DTC in exchange for its beneficial interest in such Global Note, an equal
aggregate principal amount of Definitive Notes of authorized denominations.

     (vi) The registered Holder of a Global Note may grant proxies and otherwise authorize
any person, including Agent Members and persons that may hold interests through Agent
Members, to take any action which a Holder is entitled to take under this Indenture or the
Notes.

     (vii) Any Holder of a Global Note shall, by acceptance of such Global Note, agree that
transfers of beneficial interests in such Global Note may be effected only through a
book-entry system maintained by (a) the Holder of such Global Note (or its agent) or (b) any
Holder of a beneficial interest in such Global Note, and that ownership of a beneficial
interest in such Global Note shall be required to be reflected in a book entry.

          (f) Definitive Notes.

     (i) Except as provided below, owners of beneficial interests in Global Notes will not
be entitled to receive Definitive Notes. If required to do so pursuant to any applicable
law or regulation, beneficial owners may obtain Definitive Notes in exchange for their
beneficial interests in a Global Note upon written request in accordance with DTC’s and the
Registrar’s procedures. In addition, Definitive Notes shall be transferred to all
beneficial owners in exchange for their beneficial interests in a Global Note if (A) DTC
notifies the Company at any time that it is unwilling or unable to continue as depositary
for such Global Note or DTC ceases to be a clearing agency registered under the Exchange
Act, at a time when DTC is required to be so registered in order to act as depositary, and
in each case a successor depositary is not appointed by the Company within 90 days of such
notice or (B) the Company in its sole discretion executes and delivers to the Trustee and
Registrar an Officers’ Certificate stating that such Global Note shall be so exchangeable or
(C) an Event of Default has occurred and is continuing and the Registrar has received a
request from DTC. In the event of the occurrence of any of the events specified in
clause (A), (B) or (C) of the preceding sentence, the Company shall promptly make available
to the Trustee a reasonable supply of Definitive Notes in fully registered form without
interest coupons.

     (ii) Any Definitive Note delivered in exchange for an interest in a Global Note
pursuant to Section 2.1(e)(iv) or (v) shall, except as otherwise provided by
Section 2.6(c), bear the applicable legend regarding transfer restrictions
applicable to the Definitive Note set forth under Section 2.1(d).

     (i) In connection with the exchange of a portion of a Definitive Note for a beneficial
interest in a Global Note, the Trustee shall cancel such Definitive Note, and the Company
shall execute, and the Trustee shall authenticate and make available for

47

 

delivery, to the transferring Holder a new Definitive Note representing the principal
amount not so transferred.

          (g) OID Legend. Each Note issued with “original issue discount” as defined in
Section 1273 of the Code, whether a Global Note or Definitive Note, shall bear the following legend
on the face thereof:

THIS SECURITY WAS ISSUED WITH “ORIGINAL ISSUE DISCOUNT” AS DEFINED IN SECTION 1273 OF THE
INTERNAL REVENUE CODE OF 1986, AS AMENDED. YOU MAY OBTAIN INFORMATION REGARDING THE AMOUNT
OF ORIGINAL ISSUE DISCOUNT, THE ISSUE PRICE, THE ISSUE DATE AND THE YIELD TO MATURITY BY
CONTACTING THE CHIEF FINANCIAL OFFICER OF CONEXANT SYSTEMS, INC. AT 4000 MACARTHUR
BOULEVARD, WEST TOWER, NEWPORT BEACH, CALIFORNIA 92660, OR AT (949) 483-4600.

          SECTION 2.2. Execution and Authentication. One Officer shall sign the Notes for the
Company by manual or facsimile signature. If an Officer whose signature is on a Note no longer
holds that office at the time the Trustee authenticates the Note, the Note shall be valid
nevertheless.

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

               At any time and from time to time after the execution and delivery of this Indenture, the
Trustee shall authenticate and make available for delivery: (1) Initial Notes for original issue
on the Issue Date in an aggregate principal amount of $175,000,000 and (2) subject to the terms of
this Indenture, Additional Notes for original issue in an unlimited principal amount (subject to
Section 3.2 and Section 3.6), in each case upon a written order of the Company
signed by the officer of the Company (the “Company Order”). Such Company Order shall
specify whether the Notes will be in the form of Definitive Notes or Global Notes, the amount of
the Notes to be authenticated and the date on which the original issue of Notes is to be
authenticated and whether the Notes are to be Initial Notes or Additional Notes.

               The Trustee may appoint an agent (the “Authenticating Agent”) reasonably acceptable to
the Company to authenticate the Notes. Any such appointment shall be evidenced by an instrument
signed by a Trust Officer, a copy of which shall be furnished to the Company. Unless limited by
the terms of such appointment, any such Authenticating Agent may authenticate Notes whenever the
Trustee may do so. Each reference in this Indenture to authentication by the Trustee includes
authentication by the Authenticating Agent. An Authenticating Agent has the same rights as any
Registrar, Paying Agent or agent for service of notices and demands.

               In case the Company, pursuant to Article IV, shall be consolidated or merged with or
into any other Person or shall convey, transfer, lease or otherwise dispose of its properties and
assets substantially as an entirety to any Person, and the successor Person resulting from such

48

 

consolidation, or surviving such merger, or into which the Company shall have been merged, or
the Person which shall have received a conveyance, transfer, lease or other disposition as
aforesaid, shall have executed an indenture supplemental hereto with the Trustee pursuant to
Article IV, any of the Notes authenticated or delivered prior to such consolidation,
merger, conveyance, transfer, lease or other disposition may, from time to time, at the request of
the successor Person, be exchanged for other Notes executed in the name of the successor Person
with such changes in phraseology and form as may be appropriate, but otherwise in substance of like
tenor as the Notes surrendered for such exchange and of like principal amount; and the Trustee,
upon Company Order of the successor Person, shall authenticate and make available for delivery
Notes as specified in such order for the purpose of such exchange. If Notes shall at any time be
authenticated and delivered in any new name of a successor Person pursuant to this
Section 2.2 in exchange or substitution for or upon registration of transfer of any Notes,
such successor Person, at the option of the Holders but without expense to them, shall provide for
the exchange of all Notes at the time outstanding for Notes authenticated and delivered in such new
name.

          SECTION 2.3. Registrar and Paying Agent. The Company shall maintain an office or
agency where Notes may be presented for registration of transfer or for exchange (the
"Registrar”) and an office or agency where Notes may be presented for payment (the
"Paying Agent”). The Company shall cause each of the Registrar and the Paying Agent to
maintain an office or agency in New York, New York. The Registrar shall keep a register of the
Notes and of their transfer and exchange. The Company may have one or more co-registrars and one
or more additional paying agents. The term “Paying Agent” includes any additional paying agent,
and the term “Registrar” includes any co-registrar.

               The Company shall enter into an appropriate agency agreement with any Registrar or Paying
Agent not a party to this Indenture, which shall incorporate the terms of the TIA. The agreement
shall implement the provisions of this Indenture that relate to such agent. The Company shall
notify the Trustee of the name and address of each such agent. If the Company fails to maintain a
Registrar or Paying Agent, the Trustee shall act as such and shall be entitled to appropriate
compensation therefor pursuant to Section 7.7. Any of the Company’s Restricted
Subsidiaries organized in the United States may act as Paying Agent, Registrar or transfer agent.

               The Trustee will initially act as Registrar and Paying Agent for the Notes. The Company may
remove any Registrar or Paying Agent without notice to any Holder upon written notice to such
Registrar or Paying Agent and to the Trustee; provided, however, that no such removal shall become
effective until (i) acceptance of any appointment by a successor as evidenced by an appropriate
agreement entered into by the Company and such successor Registrar or Paying Agent, as the case may
be, and delivered to the Trustee or (ii) notification to the Trustee that the Trustee shall serve
as Registrar or Paying Agent until the appointment of a successor in accordance with clause (i)
above. The Registrar or Paying Agent may resign at any time upon written notice to the Company and
the Trustee.

          SECTION 2.4. Paying Agent to Hold Money in Trust. By no later than 10:00 a.m. (New York City time) on the date on which any principal of,
premium, if any, or interest on any Note is due and payable, the Company shall deposit with the
Paying Agent a sum sufficient in

49

 

immediately available funds to pay such principal, premium, if any, or interest when due. The Company shall require each Paying Agent (other than the Trustee) to
agree in writing that such Paying Agent shall hold in trust for the benefit of the Holders or the
Trustee all money held by such Paying Agent for the payment of principal, premium, if any, of or
interest on the Notes (whether such assets have been distributed to it by the Company or other
obligors on the Notes) and shall notify the Trustee in writing of any default by the Company or any
Subsidiary Guarantor in making any such payment. If any Subsidiary Guarantor of the Company acts
as Paying Agent, it shall segregate the money held by it as Paying Agent and hold it as a separate
trust fund. The Company at any time may require a Paying Agent (other than the Trustee) to pay all
money held by it to the Trustee and to account for any funds or assets disbursed by such Paying
Agent. Upon complying with this Section 2.4, the Paying Agent (if other than a Subsidiary
Guarantor of the Company) shall have no further liability for the money delivered to the Trustee.
Upon any bankruptcy, reorganization or similar proceeding with respect to the Company, the Trustee
shall serve as Paying Agent for the Notes.

          SECTION 2.5. Holder Lists. The Trustee shall preserve in as current a form as is
reasonably practicable the most recent list available to it of the names and addresses of Holders.
If the Trustee is not the Registrar, the Company, on its own behalf and on behalf of each of the
Subsidiary Guarantors, if any, shall furnish or cause the Registrar to furnish to the Trustee, in
writing at least five Business Days before each interest payment date and at such other times as
the Trustee may request in writing, a list in such form and as of such date as the Trustee may
reasonably require of the names and addresses of the Holders.

          SECTION 2.6. Transfer and Exchange.

          (a) The following provisions shall apply with respect to any proposed transfer of a Rule 144A
Note or an Institutional Accredited Investor Note prior to the date
which is one year after the
later of the date of its original issue and the last date on which the Company or any Affiliate of
the Company was the owner of such Notes (or any predecessor thereto) (the “Resale Restriction
Termination Date”):

     (i) a transfer of a Rule 144A Note or an Institutional Accredited Investor Note or a
beneficial interest therein to a QIB shall be made upon the representation of the
transferee, in the form of assignment as set forth on the reverse of the Note, that it is
purchasing the Note for its own account or an account with respect to which it exercises
sole investment discretion and that it and any such account is a “qualified institutional
buyer” within the meaning of Rule 144A, and is aware that the sale to it is being made in
reliance on Rule 144A and acknowledges that it has received such information regarding the
Company as the undersigned has requested pursuant to Rule 144A or has determined not to
request such information and that it is aware that the transferor is relying upon its
foregoing representations in order to claim the exemption from registration provided by
Rule 144A;

     (ii) a transfer of a Rule 144A Note or an Institutional Accredited Investor Note or a
beneficial interest therein to an IAI shall be made upon receipt by the Trustee or its agent
of a certificate substantially in the form set forth under Section 2.7 from the
proposed transferee and, if requested by the Company or the Trustee, the receipt by the

50

 

     Trustee or its agent of an Opinion of Counsel, certification and/or other information
satisfactory to each of them; and

     (iii) a transfer of a Rule 144A Note or an Institutional Accredited Investor Note or a
beneficial interest therein to a Non-U.S. Person shall be made upon receipt by the Trustee
or its agent of a certificate substantially in the form set forth under Section 2.8
from the proposed transferor and, if requested by the Company or the Trustee, the delivery
of an Opinion of Counsel, certification and/or other information satisfactory to each of
them.

               After the Resale Restriction Termination Date, interests in a Rule 144A Note or an
Institutional Accredited Investor Note may be transferred in accordance with applicable law without
requiring the certifications set forth under Section 2.7 or Section 2.8 or any
additional certification.

          (b) The following provisions shall apply with respect to any proposed transfer of a
Regulation S Note prior to the expiration of the Restricted Period:

     (i) a transfer of a Regulation S Note or a beneficial interest therein to a QIB shall
be made upon the representation of the transferee, in the form of assignment as set forth on
the reverse of the Note, that it is purchasing the Note for its own account or an account
with respect to which it exercises sole investment discretion and that it and any such
account is a QIB, and is aware that the sale to it is being made in reliance on Rule 144A
and acknowledges that it has received such information regarding the Company as the
undersigned has requested pursuant to Rule 144A or has determined not to request such
information and that it is aware that the transferor is relying upon its foregoing
representations in order to claim the exemption from registration provided by Rule 144A;

     (ii) a transfer of a Regulation S Note or a beneficial interest therein to an IAI shall
be made upon receipt by the Trustee or its agent of a certificate substantially in the form
set forth under Section 2.7 from the proposed transferee and, if requested by the
Company or the Trustee, the delivery of an Opinion of Counsel, certification and/or other
information satisfactory to each of them; and

     (iii) a transfer of a Regulation S Note or a beneficial interest therein to a Non-U.S.
Person shall be made upon receipt by the Trustee or its agent of a certificate substantially
in the form set forth under Section 2.8 hereof from the proposed transferor and, if
requested by the Company or the Trustee, receipt by the Trustee or its agent of an Opinion
of Counsel, certification and/or other information satisfactory to each of them.

               After the expiration of the Restricted Period, interests in the Regulation S Note may be
transferred in accordance with applicable law without requiring the certifications set forth under
Section 2.7 or Section 2.8 or any additional certification.

               The provisions of the “Operating Procedures of the Euroclear System” and “Terms and Conditions
Governing Use of Euroclear” and the “General Terms and Conditions of Clearstream Banking” and
“Customer Handbook” of Clearstream will be applicable to transfers

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of beneficial interests in the Regulation S Global Note that are held by Participants through Euroclear or Clearstream.

          (c) Restricted Notes Legend. Upon the transfer, exchange or replacement of Notes not
bearing a Restricted Notes Legend, the Registrar shall deliver Notes that do not bear a Restricted
Notes Legend. Upon the transfer, exchange or replacement of Notes bearing a Restricted Notes
Legend, the Registrar shall deliver only Notes that bear a Restricted Notes Legend unless there is
delivered to the Registrar an Opinion of Counsel reasonably satisfactory to the Company and the
Trustee to the effect that neither such legend nor the related restrictions on transfer are
required in order to maintain compliance with the provisions of the Securities Act and, with
respect to transfers of beneficial interests in Global Notes bearing
a Restricted Notes Legend, such transfers are otherwise made in accordance the Applicable Procedures. Any Additional
Notes sold in a registered offering shall not be required to bear the Restricted Notes Legend.

          (d) The Registrar shall retain copies of all letters, notices and other written communications
received pursuant to Section 2.1 or this Section 2.6. The Company shall have the
right to inspect and make copies of all such letters, notices or other written communications at
any reasonable time upon the giving of reasonable prior written notice to the Registrar.

          (e) Obligations with Respect to Transfers and Exchanges of Notes.

     (i) To permit registrations of transfers and exchanges, the Company shall, subject to
the other terms and conditions of this Article II, execute, and the Trustee shall
authenticate, Definitive Notes and Global Notes at the Registrar’s request.

     (ii) The Holder will be required to pay any transfer tax, assessment or similar
governmental charges due in connection therewith (other than any such transfer taxes,
assessments or similar governmental charges payable upon exchange pursuant to Section 9.5).

     (iii) The Company (and the Registrar) shall not be required to register the transfer of
or exchange of any Note for a period beginning 15 days before the mailing of a notice of an
offer to repurchase or redeem Notes and ending at the close of business on the day of such
mailing. The Company (and the Registrar) shall not be required to register the transfer of
or exchange of any Note selected for redemption.

     (iv) Prior to the due presentation for registration of transfer of any Note, the
Company, the Trustee, the Paying Agent or the Registrar may deem and treat the person in
whose name a Note is registered as the absolute owner of such Note for the purpose of
receiving payment of principal of, premium, if any, and interest on such Note and for all
other purposes whatsoever, including the transfer or exchange of such Note, whether or not such Note is overdue, and none of the Company, the Trustee, the Paying Agent or the
Registrar shall be affected by notice to the contrary.

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

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          (f) No Obligation of the Trustee.

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

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

          SECTION 2.7. Form of Certificate to be Delivered in Connection with Transfers to IAIs.

[Date]

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

227 West Monroe, Suite 2600

Chicago, Illinois 60606

Attention: Corporate Trust Administration

	 	 	 	 	 
	 

	 	Re:
	 	Conexant Systems, Inc.
	 

	 	 	 	11.25% Senior Secured Notes due 2015

Ladies and Gentlemen:

               This certificate is delivered to request a transfer of $                     principal amount of the
11.25% Senior Secured Notes due 2015 (the “Notes”) of Conexant Systems, Inc. (the
“Company”).

               Upon transfer, the Notes would be registered in the name of the new beneficial owner as
follows:

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	 	Name:	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 

	 	 	 	 	 	 	 	 	 	 	 
	 

	 	Address:	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 

	 	 	 	 	 	 	 	 	 	 	 
	 	 	Taxpayer ID Number:	 	 	 	 
	 

	 	 	 	 	 	 	 	 

	 	 

               The undersigned represents and warrants to you that:

               1. We are an institutional “accredited investor” (as defined in Rule 501(a)(1), (2), (3) or
(7) under the Securities Act of 1933, as amended (the “Securities Act”)), purchasing for
our own account or for the account of such an institutional “accredited investor” at least $250,000
principal amount of the Notes, and we are acquiring the Notes not with a view to, or for offer or
sale in connection with, any distribution in violation of the Securities Act. We have such
knowledge and experience in financial and business matters as to be capable of evaluating the
merits and risk of our investment in the Notes, and we invest in or purchase securities similar to
the Notes in the normal course of our business. We and any accounts for which we are acting are
each able to bear the economic risk of our or its investment.

               2. We understand that the Notes have not been registered under the Securities Act and, unless
so registered, may not be sold except as permitted in the following sentence. We agree on our own
behalf and on behalf of any investor account for which we are purchasing Notes to offer, sell or
otherwise transfer such Notes prior to the date that is one year after the later of the date of
original issue and the last date on which the Company or any affiliate of the Company was the owner
of such Notes (or any predecessor thereto) (the “Resale Restriction Termination Date”) only
(a) to the Company, (b) pursuant to a registration statement that has been declared effective under
the Securities Act, (c) in a transaction complying with the requirements of Rule 144A under the
Securities Act, to a person we reasonably believe is a “qualified institutional buyer” under
Rule 144A under the Securities Act (a “QIB”) that is purchasing for its own account or for
the account of a QIB and to whom notice is given that the transfer is being made in reliance on Rule 144A, (d) pursuant to offers and sales that occur
outside the United States within the meaning of Regulation S under the Securities Act, (e) to an
institutional “accredited investor” within the meaning of Rule 501(a)(1), (2), (3) or (7) under the
Securities Act that is purchasing for its own account or for the account of such an institutional
“accredited investor,” in each case in a minimum principal amount of Notes of $250,000, for
investment purposes and not with a view to or for offer or sale in connection with any distribution
in violation of the Securities Act or (f) pursuant to any other available exemption from the
registration requirements of the Securities Act, subject in each of the foregoing cases to any
requirement of law that the disposition of our property or the property of such investor account or
accounts be at all times within our or their control and in compliance with any applicable state
securities laws. The foregoing restrictions on resale will not apply subsequent to the Resale
Restriction Termination Date. If any resale or other transfer of the Notes is proposed to be made
pursuant to clause (e) above prior to the Resale Restriction Termination Date, the transferor shall
deliver a letter from the transferee substantially in the form of this letter to the Company and
The Bank of New York Mellon Trust Company, N.A., as Trustee (the “Trustee”), which shall
provide, among other things, that the transferee is an institutional “accredited investor” (within
the meaning of Rule 501(a)(1), (2), (3) or (7) under the Securities Act) and that it is acquiring
such Notes for investment purposes and not for distribution in violation of the

54

 

Securities
Act. Each purchaser acknowledges that the Company and the Trustee reserve the right prior to any offer,
sale or other transfer prior to the Resale Termination Date of the Notes pursuant to clause (d),
(e) or (f) above to require the delivery of an opinion of counsel, certifications and/or other
information satisfactory to the Company and the Trustee.

     The Trustee and the Company 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 proceedings or official inquiry with respect to the matters covered hereby.

TRANSFEREE:                                        

BY:                                                             

cc: Conexant Systems, Inc.

          SECTION 2.8. Form of Certificate to be Delivered in Connection with Transfers Pursuant to
Regulation S.

[Date]

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

227 West Monroe, Suite 2600

Chicago, Illinois 60606

Attention: Corporate Trust Administration

	 	 	 	 	 
	 

	 	Re:
	 	Conexant Systems, Inc.
	 

	 	 	 	11.25% Senior Secured Notes due 2015

Ladies and Gentlemen:

               In connection with our proposed sale of $                     aggregate principal amount of the 11.25%
Senior Secured Notes due 2015 (the “Notes”) of Conexant Systems, Inc. (the
“Company”), we confirm that such sale has been effected pursuant to and in accordance with
Regulation S under the United States Securities Act of 1933, as amended (the “Securities
Act”), and, accordingly, we represent that:

               (a) the offer of the Notes was not made to a person in the United States;

     (b) either (i) at the time the buy order was originated, the transferee was outside the
United States or we and any person acting on our behalf reasonably believed that the
transferee was outside the United States or (ii) the transaction was executed in, on or
through the facilities of a designated off-shore securities market and neither we nor any
person acting on our behalf knows that the transaction has been pre-arranged with a buyer in
the United States;

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     (c) no directed selling efforts have been made in the United States in contravention of
the requirements of Rule 903(a)(2) or Rule 904(a)(2) of Regulation S, as applicable; and

     (d) the transaction is not part of a plan or scheme to evade the registration
requirements of the Securities Act.

               In addition, if the sale is made during a restricted period and the provisions of
Rule 903(b)(2) or Rule 904(b)(1) of Regulation S are applicable thereto, we confirm that such sale
has been made in accordance with the applicable provisions of Rule 903(b)(2) or Rule 904(b)(1), as
the case may be.

               The Bank of New York Trust Company, N.A., as Trustee, and the Company 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 proceedings or official inquiry with respect to the
matters covered hereby. Terms used in this certificate have the meanings set forth in
Regulation S.

               Very truly yours,

               [Name of Transferor]

	 	 	 	 	 	 	 
	 

	 	By:	 	 	 	 
	 

	 	 	 	 

	 	 
	 
	 	 	 	 	 	 
	 	 	 	 	 
	 

	 	 	 	Authorized Signature	 	 

cc: Conexant Systems, Inc.

          SECTION 2.9. Mutilated, Destroyed, Lost or Stolen Notes. If a mutilated Note is
surrendered to the Registrar or if the Holder claims that the Note has been lost, destroyed or
wrongfully taken, the Company shall issue and the Trustee shall authenticate a replacement Note if
the requirements of Section 8-405 of the Uniform Commercial Code are met, such that the Holder
(a) notifies the Company or the Trustee within a reasonable time after such Holder has notice of
such loss, destruction or wrongful taking and the Registrar has not registered a transfer prior to
receiving such notification, (b) makes such request to the Company or the Trustee prior to the Note
being acquired by a protected purchaser as defined in Section 8-303 of the Uniform Commercial Code
(a “protected purchaser”) and (c) satisfies any other reasonable requirements of the
Trustee. If required by the Trustee or the Company, such Holder shall furnish an indemnity bond
sufficient in the judgment of the Company and the Trustee to protect the Company, the Trustee, the
Paying Agent and the Registrar from any loss which any of them may suffer if a Note is replaced,
and, in the absence of notice to the Company, any Subsidiary Guarantor or the Trustee that such
Note has been acquired by a bona fide purchaser, the Company shall execute and, upon receipt of a
Company Order, the Trustee shall authenticate and make available for delivery, in exchange for any
such mutilated Note or in lieu of any such destroyed, lost or stolen Note, a new Note of like tenor
and principal amount, bearing a number not contemporaneously outstanding.

56

 

          In case any such mutilated, destroyed, lost or stolen Note has become or is about to become
due and payable, the Company in its discretion may, instead of issuing a new Note, pay such Note.

          Upon the issuance of any new Note under this Section, the Company may require that such Holder
pay a sum sufficient to cover any tax or other governmental charge that may be imposed in relation
thereto and any other expenses (including the fees and expenses of counsel and of the Trustee) in
connection therewith.

          Every new Note issued pursuant to this Section in lieu of any mutilated, destroyed, lost or
stolen Note shall constitute an original additional contractual obligation of the Company, any
Subsidiary Guarantor (if applicable) and any other obligor upon the Notes, whether or not the
mutilated, destroyed, lost or stolen Note shall be at any time enforceable by anyone, and shall be
entitled to all benefits of this Indenture equally and proportionately with any and all other Notes
duly issued hereunder.

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

          SECTION 2.10. Outstanding Notes. Notes outstanding at any time are all Notes
authenticated by the Trustee except for those cancelled by it, those delivered to it for
cancellation and those described in this Section as not outstanding. A Note does not cease to be
outstanding in the event either of the Company or an Affiliate of the Company holds the Note;
provided, however, that (i) for purposes of determining which are outstanding for consent or voting
purposes hereunder, the provisions of Section 12.6 shall apply and (ii) in determining
whether the Trustee shall be protected in making a determination whether the Holders of the
requisite principal amount of outstanding Notes are present at a meeting of Holders of Notes for
quorum purposes or have consented to or voted in favor of any request, demand, authorization,
direction, notice, consent, waiver, amendment or modification hereunder, or relying upon any such
quorum, consent or vote, only Notes which a Trust Officer of the Trustee actually knows to be held
by the Company or an Affiliate of the Company shall not be considered outstanding.

          If a Note is replaced pursuant to Section 2.9 (other than a mutilated Note surrendered
for replacement), it ceases to be outstanding and interest on it ceases to accrue unless the
Trustee and the Company receive proof satisfactory to them that the replaced Note is held by a
protected purchaser. A mutilated Note ceases to be outstanding upon surrender of such Note and
replacement pursuant to Section 2.9.

          Notes, or portions thereof, for whose payment, redemption or purchase (including pursuant to a
Collateral Disposition Offer, Early Collateral Disposition Offer, Asset Disposition Offer or Change
of Control Offer, but not including pursuant to Section 8.2(b) hereof) money in the necessary
amount has been theretofore deposited with the Trustee or any Paying Agent (other than the Company)
in trust or set aside and segregated in trust by the Company (if the Company shall act as Paying
Agent) for the Holders of such Notes cease to be outstanding at the time such Notes are accepted
for payment in accordance with the provisions of this Indenture.

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          If the Paying Agent segregates and holds in trust, in accordance with this Indenture, on a
Redemption Date or maturity date money sufficient to pay all principal, premium, if any, and
accrued interest payable on that date with respect to the Notes (or portions thereof) to be
redeemed or maturing, as the case may be, and the Paying Agent is not prohibited from paying such
money to the Holders on that date pursuant to the terms of this Indenture, then on and after that
date such Notes (or portions thereof) cease to be outstanding and interest on them ceases to
accrue.

          SECTION 2.11. Temporary Notes. In the event that Definitive Notes are to be issued
under the terms of this Indenture, until such Definitive Notes are ready for delivery, the Company
may prepare and the Trustee shall authenticate temporary Notes. Temporary Notes shall be
substantially in the form, and shall carry all rights, of Definitive Notes but may have variations
that the Company considers appropriate for temporary Notes. Without unreasonable delay, the Company shall
prepare and the Trustee shall authenticate Definitive Notes. After the preparation of Definitive
Notes, the temporary Notes shall be exchangeable for Definitive Notes upon surrender of the
temporary Notes at any office or agency maintained by the Company for that purpose and such
exchange shall be without charge to the Holder. Upon surrender for cancellation of any one or more
temporary Notes, the Company shall execute, and the Trustee shall authenticate and make available
for delivery in exchange therefor, one or more Definitive Notes representing an equal principal
amount of Notes. Until so exchanged, the Holder of temporary Notes shall in all respects be
entitled to the same benefits under this Indenture as a Holder of Definitive Notes.

          SECTION 2.12. Cancellation. The Company at any time may deliver Notes to the Trustee
for cancellation. The Registrar and the Paying Agent shall forward to the Trustee any Notes
surrendered to them for registration of transfer, exchange or payment. The Trustee and no one else
shall cancel all Notes surrendered for registration of transfer, exchange, payment or cancellation
and dispose of such Notes in accordance with its internal policies and customary procedures and
shall deliver canceled Notes to the Company pursuant to written direction by an Officer of the
Company. If the Company or any Subsidiary Guarantor acquires any of the Notes, such acquisition
shall not operate as a redemption or satisfaction of the Indebtedness represented by such Notes
unless and until the same are surrendered to the Trustee for cancellation pursuant to this
Section 2.12. The Company may not issue new Notes to replace Notes it has paid or
delivered to the Trustee for cancellation for any reason other than in connection with a transfer
or exchange.

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

58

 

          SECTION 2.13. Payment of Interest; Defaulted Interest. Interest on any Note which is
payable, and is punctually paid or duly provided for, on any interest payment date shall be paid to
the Person in whose name such Note (or one or more predecessor Notes) is registered at the close of
business on the regular record date for such payment at the office or agency of the Company
maintained for such purpose pursuant to Section 2.3.

          Any interest on any Note which is payable, but is not paid when the same becomes due and
payable and such nonpayment continues for a period of 30 days shall forthwith cease to be payable
to the Holder on the regular record date, and such defaulted interest and (to the extent lawful)
interest on such defaulted interest at the rate specified therefor in the Notes (such defaulted interest and interest thereon herein collectively called “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 Notes (or their respective predecessor Notes) are registered at the close of
business on a Special Record Date (as defined below) 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 proposed to be paid on each Note and
the date (not less than 30 days after such notice) of the proposed payment (the “Special
Interest Payment Date”), and at the same time the Company shall deposit with the Trustee
an amount of money equal to the aggregate amount proposed to be paid in respect of such
Defaulted Interest or shall make arrangements satisfactory to the Trustee for such deposit
prior to the date of the proposed payment, such money when deposited to be held in trust for
the benefit of the Persons entitled to such Defaulted Interest as in this clause provided.
Thereupon the Trustee shall fix a record date (the “Special Record Date”) for the
payment of such Defaulted Interest, which date shall be not more than 15 days and not less
than 10 days prior to the Special Interest Payment Date and not less than 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 and Special Interest Payment Date therefor to be given in the manner
provided for under Section 12.2 not less than 10 days prior to such Special Record
Date. Notice of the proposed payment of such Defaulted Interest and the Special Record Date
and Special Interest Payment Date therefor having been so given, such Defaulted Interest
shall be paid on the Special Interest Payment Date to the Persons in whose names the Notes
(or their respective predecessor Notes) are registered at the close of business on such
Special Record Date and shall no longer be payable pursuant to the following clause (b).

     (b) The Company may make payment of any Defaulted Interest in any other lawful manner
not inconsistent with the requirements of any securities exchange on which the Notes may be
listed, and upon such notice as may be required by such exchange, if, after notice 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.

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          Subject to the foregoing provisions of this Section, each Note delivered under this Indenture
upon registration of, transfer of or in exchange for or in lieu of any other Note shall carry the
rights to interest accrued and unpaid, and to accrue, which were carried by such other Note.

          SECTION 2.14. Computation of Interest. Interest on the Notes will be computed on the
basis of the actual number of days in an interest period and a 360-day year, as provided in Section
1 of the Notes.

          SECTION 2.15. CUSIP, Common Code and ISIN Numbers. The Company in issuing the Notes
may use “CUSIP,” “Common Code” or “ISIN” numbers and, if so, the Trustee shall use “CUSIP,” “Common
Code” or “ISIN” numbers in notices of redemption or purchase as a convenience to Holders; provided,
however, that any such notice may state that no representation is made as to the correctness of
such numbers either as printed on the Notes or as contained in any notice of a redemption or
purchase and that reliance may be placed only on the other identification numbers printed on the
Notes, and any such redemption or purchase shall not be affected by any defect in or omission of
such CUSIP, Common Code or ISIN number. The Company shall promptly notify the Trustee in writing
of any change in any CUSIP, Common Code or ISIN number.

ARTICLE III

COVENANTS

          SECTION 3.1. Payment of Notes. The Company shall promptly pay the principal of,
premium, if any, and interest on the Notes on the dates and in the manner provided in the Notes and
in this Indenture. Principal, premium, if any, and interest shall be considered paid on the date
due if on such date the Trustee or the Paying Agent holds in accordance with this Indenture
immediately available funds sufficient to pay all principal, premium, if any, and interest then due
and the Trustee or the Paying Agent, as the case may be, is not prohibited from paying such money
to the Holders on that date pursuant to the terms of this Indenture.

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

          The Company and any Subsidiary Guarantors will pay any present or future stamp, court or
documentary taxes or any other excise or property taxes, charges or similar levies that arise in
any jurisdiction from the execution, delivery, enforcement or registration of the Notes, the
Subsidiary Guarantees (if any), this Indenture or any other document or instrument in relation
thereof, or the receipt of any payments with respect to the Notes or any Subsidiary Guarantees,
excluding such taxes, charges or similar levies imposed by any jurisdiction outside of the United
States, the jurisdiction of incorporation of any successor of the Company or any Subsidiary
Guarantor or any jurisdiction in which a Paying Agent is located, other than those resulting from,
or required to be paid in connection with, the enforcement of the Notes, the Subsidiary Guarantees
or any other such document or instrument following the occurrence of any Event of Default with
respect to the Notes. The Company or the Subsidiary Guarantors, if any, will agree to indemnify
the Holders for any such taxes paid by such Holders.

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          Notwithstanding anything to the contrary contained in this Indenture, the Company or any
Subsidiary Guarantor may, to the extent it is required to do so by law, deduct or withhold income
or other similar taxes imposed by the United States of America from principal, premium or interest
payments hereunder.

          SECTION 3.2. Limitation on Indebtedness.

          (a) The Company will not, and will not permit any of its Restricted Subsidiaries to,
Incur any Indebtedness (including Acquired Indebtedness); provided, however, that the Company and
the Subsidiary Guarantors may Incur Indebtedness if on the date thereof and after giving effect to
such Incurrence and the application of proceeds therefrom on a pro forma basis:

     (i) the Consolidated Leverage Ratio for the Company and its Restricted Subsidiaries
would not exceed 4.00 to 1.00; and

     (ii) no Default or Event of Default will have occurred or be continuing or would occur
as a consequence of Incurring the Indebtedness or applying the proceeds therefrom.

          (b) Section 3.2(a) will not prohibit the Incurrence of the following Indebtedness
(collectively, “Permitted Debt”):

     (i) the Incurrence of Shared Lien Debt, Revolving Credit Debt and/or Indebtedness with
respect to a Qualified Receivables Transaction in an aggregate principal amount at any one
time outstanding under this clause (i) (with letters of credit being deemed to have a
principal amount equal to the maximum potential liability of the Company and its Restricted
Subsidiaries thereunder and Indebtedness with respect to a Qualified Receivables Transaction
being deemed to have a principal amount equal to the Receivables Transaction Amount), not to
exceed the greater of (x) $30.0 million or (y) 50% of Consolidated EBITDA as of the date of
such Incurrence;

     (ii) Indebtedness represented by (A) the Notes issued on the Issue Date and the
Subsidiary Guarantees in respect thereof, (B) Shared Lien Refinancing Debt and the
guarantees in respect thereof and (C) Existing Indebtedness;

     (iii) the Incurrence by the Company or any Restricted Subsidiary of Indebtedness
represented by Capitalized Lease Obligations, mortgage financings, purchase money
obligations or other payments, in each case Incurred to finance all or any part of the
purchase price or cost of construction or improvement of assets or property (other than
Capital Stock or other Investments) acquired, constructed or improved in the ordinary course
of business of the Company or such Restricted Subsidiary, and Attributable Indebtedness, in
an aggregate principal amount, including all Refinancing Indebtedness Incurred to refund,
defease, renew, extend, refinance or replace any Indebtedness Incurred pursuant to this
clause (iii), not to exceed $15.0 million at any time outstanding;

     (iv) Indebtedness of the Company owing to and held by any Restricted Subsidiary (other
than a Receivables Entity) or Indebtedness of a Restricted Subsidiary

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owing to and held by the Company or any other Restricted Subsidiary (other than a Receivables Entity); provided,
however,

          (A) if the Company is the obligor on such Indebtedness, such Indebtedness is expressly
subordinated to the prior payment in full in cash of all obligations with respect to the
Notes;

          (B) if a Subsidiary Guarantor is the obligor on such Indebtedness and the Company or a
Subsidiary Guarantor is not the obligee, such Indebtedness is subordinated in right of
payment to the Subsidiary Guarantees of such Subsidiary Guarantor; and

          (C) (1) any subsequent issuance or transfer of Capital Stock or any other event which
results in any such Indebtedness being beneficially held by a Person other than the Company
or a Restricted Subsidiary (other than a Receivables Entity); and

               (2) any sale or other transfer of any such Indebtedness to a Person
other than the Company or a Restricted Subsidiary (other than a
Receivables Entity)

will be deemed, in each case, to constitute an Incurrence of such Indebtedness by the
Company or such Restricted Subsidiary, as the case may be, that was not permitted by this
clause (iv);

     (v) Indebtedness under Hedging Obligations that are Incurred in the ordinary course of
business (and not for speculative purposes) (A) for the purpose of fixing or hedging
interest rate risk with respect to any Indebtedness Incurred in accordance with this
Indenture; (B) for the purpose of fixing or hedging currency exchange rate risk with respect
to any currency exchanges; or (C) for the purpose of fixing or hedging commodity price risk
with respect to any commodities;

     (vi) Guarantees by (A) the Company or Subsidiary Guarantors of Indebtedness Incurred by
the Company or a Subsidiary Guarantor in accordance with the provisions of this Indenture
and (B) Restricted Subsidiaries that are not Subsidiary Guarantors of Indebtedness Incurred
by other Restricted Subsidiaries that are not Subsidiary Guarantors in accordance with the
provisions of this Indenture; provided that, if the Indebtedness being Guaranteed is
subordinated to the Notes or the Subsidiary Guarantee, then the Guarantee must be
subordinated to the same extent as the Indebtedness being Guaranteed;

     (vii) Indebtedness Incurred in respect of performance bonds, bankers’ acceptances,
workers’ compensation claims, surety or appeal bonds, payment obligations in connection with
self-insurance obligations and completion guarantees provided by the Company or a Restricted
Subsidiary in the ordinary course of business;

     (viii) Indebtedness arising from agreements of the Company or a Restricted Subsidiary
providing for indemnification, adjustment of purchase price or similar obligations, in each
case, Incurred or assumed in connection with the disposition of any

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business,
assets or Capital Stock of a Restricted Subsidiary; provided that the maximum aggregate liability in
respect of all such Indebtedness shall at no time exceed the gross proceeds actually received by the Company and its Restricted Subsidiaries in connection
with such disposition;

     (ix) Indebtedness of the Company or any Restricted Subsidiary represented by letters of
credit or bank guarantees entered into in the ordinary course of business to the extent that
such letters of credit or bank guarantees are not drawn upon or, if and to the extent drawn
upon, such drawing is reimbursed no later than the 30th Business Day following a demand for
reimbursement following payment on the letter of credit or bank guarantee; provided that
such letter of credit or bank guarantee must comply with Section 3.2(a) if it is
issued in support of other Indebtedness;

     (x) Indebtedness of the Company or any Restricted Subsidiary Incurred in connection
with any Sale/Leaseback Transaction permitted pursuant to Section 3.7;

     (xi) Indebtedness of a Restricted Subsidiary Incurred and outstanding on the date on
which such Restricted Subsidiary was acquired by, or merged into, the Company or any
Restricted Subsidiary (other than Indebtedness Incurred (A) to provide all or any portion of
the funds utilized to consummate the transaction or series of related transactions pursuant
to which such Restricted Subsidiary became a Restricted Subsidiary or was otherwise acquired
by the Company or (B) otherwise in connection with, or in contemplation of, such
acquisition); provided, that after giving pro forma effect to such acquisition or merger and
the Incurrence of such Indebtedness pursuant to this clause (xi):

          (A) the Company would have been able to Incur $1.00 of additional Indebtedness pursuant
to Section 3.2(a); or

          (B) the Consolidated Leverage Ratio of the Company and the Restricted Subsidiaries
would be less than the Consolidated Leverage Ratio immediately prior to such acquisition or
merger;

     (xii) Indebtedness arising from the honoring by a bank or other financial institution
of a check, draft or similar instrument (except in the case of daylight overdrafts) drawn
against insufficient funds in the ordinary course of business; provided, however, that such
Indebtedness is extinguished within five Business Days of Incurrence;

     (xiii) Indebtedness of the Company or any Restricted Subsidiary consisting of (A) the
financing of insurance premiums or (B) take-or-pay obligations contained in supply
arrangements, in each case, in the ordinary course of business;

     (xiv) any Refinancing Indebtedness Incurred in respect of Indebtedness described in
clause (ii), (xi) or this clause (xiv) of this Section
3.2(b) or incurred pursuant to Section 3.2(a); provided, however, that no Refinancing Indebtedness may be
Incurred with respect to the Convertible Notes pursuant to this clause (xiv); and

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     (xv) Indebtedness of the Company or a Restricted Subsidiary to the extent the net
proceeds thereof are (A) promptly deposited to defease all outstanding Notes pursuant to
Section 8.1, (B) used by the Company to repurchase Notes following a Change of
Control pursuant to Section 3.11 or (C) used to discharge this Indenture.

          (c) Notwithstanding anything herein to the contrary, the Company will not, and will not permit
any Restricted Subsidiary to, Incur any Indebtedness (including Permitted Debt) that is unsecured
or that is contractually subordinated in right of payment to any other Indebtedness of the Company
or such Restricted Subsidiary, unless such Indebtedness has both a final maturity date and a
Weighted Average Life to Maturity later than the six-month anniversary of the maturity date of the
Notes. In addition, the Company will not, and will not permit any Subsidiary Guarantor to, Incur
any Indebtedness (including Permitted Debt) that is contractually subordinated in right of payment
to any other Indebtedness of the Company or such Subsidiary Guarantor unless such Indebtedness is
also contractually subordinated in right of payment to the Notes and the Subsidiary Guarantees on
substantially identical terms; provided, however, that no Indebtedness will be deemed to be
contractually subordinated in right of payment to any other Indebtedness of the Company solely by
virtue of being unsecured or by virtue of being secured on a junior priority basis.

          (d) For purposes of determining compliance with, and the outstanding principal amount of any
particular Indebtedness Incurred pursuant to and in compliance with, this Section 3.2:

     (i) in the event that Indebtedness meets the criteria of more than one of the types of
Indebtedness described in Section 3.2(a) and (b), the Company, in its sole
discretion, will classify such item of Indebtedness on the date of Incurrence and may later
classify such item of Indebtedness in any manner that complies with this Section 3.2
and only be required to include the amount and type of such Indebtedness in one of such
clauses; provided that all Revolving Credit Debt and all Indebtedness incurred at any time
with respect to a Qualified Receivables Transaction will be deemed to be incurred under
clause (i) of the definition of Permitted Debt and may not later be reclassified and the
Notes issued on the Issue Date will be deemed to be incurred under clause (ii)(A) of the
definition of Permitted Debt and may not later be reclassified;

     (ii) Guarantees of, or obligations in respect of letters of credit relating to,
Indebtedness which is otherwise included in the determination of a particular amount of
Indebtedness will not be included;

     (iii) the principal amount of any Disqualified Stock of the Company or a Restricted
Subsidiary, or Preferred Stock of a Restricted Subsidiary that is not a Subsidiary
Guarantor, will be equal to the greater of the maximum mandatory redemption or repurchase
price (not including, in either case, any redemption or repurchase premium) or the
liquidation preference thereof;

     (iv) Indebtedness permitted by this Section 3.2 need not be permitted solely by
reference to one provision permitting such Indebtedness but may be permitted in part by

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one such provision and in part by one or more other provisions of this Section
3.2 permitting such Indebtedness; and

     (v) the amount of Indebtedness issued at a price that is less than the principal amount
thereof will be equal to the amount of the liability in respect thereof determined in
accordance with GAAP.

          (e) Accrual of interest, accrual of dividends, the accretion of accreted value, the payment of
interest in the form of additional Indebtedness and the payment of dividends in the form of
additional shares of Preferred Stock or Disqualified Stock will not be deemed to be an Incurrence
of Indebtedness for purposes of this Section 3.2. The amount of any Indebtedness
outstanding as of any date will be (i) the accreted value thereof in the case of any Indebtedness
issued with original issue discount and (ii) the principal amount or liquidation preference
thereof, together with any interest thereon that is more than 30 days past due, in the case of any
other Indebtedness.

          (f) The Company will not permit any of its Unrestricted Subsidiaries to Incur any Indebtedness
or issue any shares of Disqualified Stock, other than Non-Recourse Debt. If at any time an
Unrestricted Subsidiary becomes a Restricted Subsidiary, any Indebtedness of such Subsidiary will
be deemed to be Incurred by a Restricted Subsidiary as of such date (and, if such Indebtedness is
not permitted to be Incurred as of such date under this Section 3.2, the Company will be in
Default of this Section 3.2).

          For purposes of determining compliance with any U.S. dollar-denominated restriction on the
Incurrence of Indebtedness, the U.S. dollar-equivalent principal amount of Indebtedness denominated
in a foreign currency will be calculated based on the relevant currency exchange rate in effect on
the date such Indebtedness was Incurred, in the case of term Indebtedness, or first committed, in
the case of revolving credit Indebtedness; provided that if such Indebtedness is Incurred to
refinance other Indebtedness denominated in a foreign currency, and such refinancing would cause
the applicable U.S. dollar-denominated restriction to be exceeded if calculated at the relevant
currency exchange rate in effect on the date of such refinancing, such U.S. dollar-denominated
restriction will be deemed not to have been exceeded so long as the principal amount of such
Refinancing Indebtedness does not exceed the principal amount of such Indebtedness being
refinanced. Notwithstanding any other provision of this Section 3.2, the maximum amount of
Indebtedness that the Company or any Restricted Subsidiary may Incur pursuant to this Section
3.2 will not be deemed to be exceeded solely as a result of fluctuations in the exchange rate
of currencies. The principal amount of any Indebtedness Incurred to refinance other Indebtedness,
if Incurred in a different currency from the Indebtedness being refinanced, will be calculated
based on the currency exchange rate applicable to the currencies in which such Refinancing
Indebtedness is denominated that is in effect on the date of such refinancing.

          SECTION
3.3. Limitation on Restricted Payments.

          (a) The Company will not, and will not permit any of its Restricted Subsidiaries, directly or
indirectly, to:

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     (i) declare or pay any dividend or make any distribution (whether made in cash,
securities or other property) on or in respect of its Capital Stock (including any payment
in connection with any merger or consolidation involving the Company or any of its
Restricted Subsidiaries) except:

               (A) dividends or distributions payable in Capital Stock of the Company (other than
Disqualified Stock) or in options, warrants or other rights to purchase such Capital Stock
of the Company; and

               (B) dividends or distributions payable to the Company or a Restricted Subsidiary (and
if such Restricted Subsidiary is not a Wholly Owned Subsidiary, to its other holders of
common Capital Stock on a pro rata basis);

          (ii) purchase, redeem, retire or otherwise acquire for value any Capital Stock of the
Company or any direct or indirect parent of the Company held by Persons other than the
Company or a Restricted Subsidiary (other than in exchange for Capital Stock of the Company
(other than Disqualified Stock));

          (iii) purchase, repurchase, redeem, defease or otherwise acquire or retire for value,
prior to scheduled maturity, scheduled repayment or scheduled sinking fund payment, any
Indebtedness of the Company or any Subsidiary Guarantor that is contractually subordinated
to the Notes or to any Subsidiary Guarantee (excluding intercompany Indebtedness between or
among the Company and any of its Restricted Subsidiaries), except a payment of interest,
principal or premium at the Stated Maturity thereof; or

          (iv) make any Restricted Investment in any Person; (any such dividend, distribution,
purchase, redemption, repurchase, defeasance, other acquisition, retirement or Restricted
Investment referred to in clauses (i) through (iv) shall be referred to herein as a
“Restricted Payment”),

if at the time the Company or such Restricted Subsidiary makes such Restricted Payment:

               (A) a Default has occurred and is continuing (or would result therefrom);

               (B) the Company is not able to Incur $1.00 of additional Indebtedness pursuant to
Section 3.2(a) after giving effect, on a pro forma basis, to such Restricted
Payment; or

               (C) the aggregate amount of such Restricted Payment and all other Restricted Payments
declared or made subsequent to the Issue Date (excluding Restricted Payments made pursuant
to clauses (ii), (iii), (iv), (v), (vii), (viii), (ix) and (x) of Section 3.3(b))
would exceed the sum of:

               (1) 50% of Consolidated Net Income for the period (treated as one accounting
period) from the beginning of the first fiscal quarter commencing after the Issue
Date to the end of the most recent fiscal quarter ending prior to the

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date of such Restricted Payment for which financial statements are in existence
(or, in case such Consolidated Net Income is a deficit, minus 100% of such deficit);
plus

               (2) 100% of the aggregate Net Cash Proceeds received by the Company subsequent
to January 1, 2011, from the issue or sale of its Capital Stock (other than
Disqualified Stock) or from the issue or sale of convertible or exchangeable
Disqualified Stock or convertible or exchangeable debt securities of the Company
that, in each case, have been converted into or exchanged for Capital Stock that is
not Disqualified Stock (other than Net Cash Proceeds received from an issuance or
sale of such Capital Stock, Disqualified Stock or convertible or exchangeable debt
securities to a Subsidiary of the Company or an employee stock ownership plan,
option plan or similar trust to the extent such sale to an employee stock ownership
plan or similar trust is financed by loans from or Guaranteed by the Company or any
Restricted Subsidiary unless such loans have been repaid with cash on or prior to
the date of determination) excluding in any event Net Cash Proceeds received by the
Company from the issue and sale of its Capital Stock, Disqualified Stock or
convertible or exchangeable debt securities or capital contributions to the extent
applied to redeem Notes pursuant to the second paragraph of Section 5 of the Notes;
plus

               (3) the amount by which Indebtedness of the Company or its Restricted
Subsidiaries (other than the Convertible Notes) is reduced on the Company’s balance
sheet upon the conversion or exchange (other than by a Subsidiary of the Company)
subsequent to the Issue Date of any Indebtedness of the Company or its Restricted
Subsidiaries convertible or exchangeable for Capital Stock (other than Disqualified
Stock) of the Company (less the amount of any cash, or the fair market value of any
other property, distributed by the Company upon such conversion or exchange); plus

               (4) the amount equal to the net reduction in Restricted Investments made by the
Company or any of its Restricted Subsidiaries in any Person resulting from:

               (I) repurchases or redemptions of such Restricted Investments by such
Person, proceeds realized upon the sale of such Restricted Investment to an
unaffiliated purchaser, repayments of loans or advances or other transfers
of assets (including by way of dividend or distribution) by such Person to
the Company or any Restricted Subsidiary (other than for reimbursement of
tax payments); or

               (II) the redesignation of Unrestricted Subsidiaries as Restricted
Subsidiaries (valued in each case as provided in the definition of
“Investment”) not to exceed, in the case of any Unrestricted Subsidiary, the
amount of Investments previously made by the Company or any Restricted
Subsidiary in such Unrestricted Subsidiary,

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which amount in each case under this clause (4) was included in the calculation of
the amount of Restricted Payments; provided, however, that no amount will be
included under this clause (4) to the extent it is already included in Consolidated
Net Income.

(b) The provisions of Section 3.3(a) will not prohibit:

     (i) the payment of any dividend or the consummation of any irrevocable redemption
within 60 days after the date of declaration of the dividend or irrevocable redemption
notice, if at the date of declaration or notice, the dividend or redemption payment would
have complied with the provisions of this Indenture;

     (ii) the making of any Restricted Payment after January 1, 2011, in exchange for, or
out of the proceeds of the substantially concurrent sale of, Capital Stock of the Company
(other than Disqualified Stock and other than Capital Stock issued or sold to a
Subsidiary or an employee stock ownership plan or similar trust to the extent such sale
to an employee stock ownership plan or similar trust is financed by loans from or
Guaranteed by the Company or any Restricted Subsidiary unless such loans have been repaid
with cash on or prior to the date of determination) or from a substantially concurrent
contribution to the common equity capital of the Company; provided, however, that the Net
Cash Proceeds from such sale or contribution will be excluded from Section
3.3(a)(C)(2);

     (iii) any purchase, repurchase, redemption, defeasance or other acquisition or
retirement of Indebtedness of the Company or any Subsidiary Guarantor that is
contractually subordinated to the Notes or to any Subsidiary Guarantee made in exchange
for, or out of the proceeds of the substantially concurrent sale of, Indebtedness of the
Company or any Subsidiary Guarantor that is contractually subordinated to the Notes or to
any Subsidiary Guarantee that is permitted to be Incurred pursuant to Section 3.2
and that constitutes Refinancing Indebtedness;

     (iv) any purchase, repurchase, redemption, defeasance or other acquisition or
retirement of Disqualified Stock of the Company or a Restricted Subsidiary made by
exchange for, or out of the proceeds of the substantially concurrent sale of,
Disqualified Stock of the Company or such Restricted Subsidiary, as the case may be,
that, in each case, is permitted to be Incurred pursuant to Section 3.2 and that,
in each case, constitutes Refinancing Indebtedness;

     (v) the payment of any dividend by a Restricted Subsidiary to the holders of its
Capital Stock on a pro rata basis;

     (vi) so long as no Default or Event of Default has occurred and is continuing,

     (A) the purchase, redemption or other acquisition, cancellation or
retirement for value of Capital Stock, or options, warrants, equity appreciation
rights or other rights to purchase or acquire Capital Stock of the Company or any
Restricted Subsidiary or any direct or indirect parent of the Company held by any
existing or former employees or directors of the Company or any

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Subsidiary of the Company or their assigns, estates or heirs, in each case
in connection with the repurchase provisions under employee stock option or stock
purchase agreements or other agreements to compensate employees or directors;
provided that such Capital Stock, or options, warrants, equity appreciation
rights or other rights to purchase or acquire Capital Stock, were received for
services related to, or for the benefit of, the Company and its Restricted
Subsidiaries; and provided further that such redemptions or repurchases pursuant
to this clause (A) will not exceed $5.0 million in the aggregate during any
twelve-month period, plus the amount of any capital contributions to the Company
as a result of sales of Capital Stock, or options, warrants, equity appreciation
rights or other rights to purchase or acquire Capital Stock, of the Company or
any direct or indirect parent of the Company to such persons (provided, however,
that the Net Cash Proceeds from such sale of Capital Stock will be excluded from
Section 3.3(a)(C)(2) of the preceding paragraph); and

     (B) loans or advances to employees, officers or directors of the Company or
any Subsidiary of the Company the proceeds of which are used to purchase Capital
Stock of the Company, in an aggregate amount not in excess of $5.0 million with
respect to all loans or advances made since the Issue Date (without giving effect
to the forgiveness of any such loan); provided, however, that the Company and its
Subsidiaries will comply in all material respects with the provisions of the
Sarbanes Oxley Act of 2002, as amended, and the rules and regulations promulgated
in connection therewith relating to the provisions of any such loans and
advances;

     (vii) repurchases of Capital Stock deemed to occur upon the exercise of stock
options, warrants or other convertible securities if such Capital Stock represents a
portion of the exercise price thereof;

     (viii) the purchase, repurchase, redemption, defeasance or other acquisition or
retirement for value of Indebtedness of the Company or any Subsidiary Guarantor that is
contractually subordinated to the Notes or to any Subsidiary Guarantee (a) at a purchase
price not greater than 101% of the principal amount thereof in the event of a Change of
Control in accordance with provisions similar to Section 3.11 or (b) at a
purchase price not greater than 100% of the principal amount thereof in the event of an
Asset Disposition (other than an Asset Disposition of Collateral) in accordance with
provisions similar to Section 3.5, but only if the Company has first made the
Change of Control Offer or Asset Disposition Offer, as applicable, as provided in
Section 3.11 and Section 3.5, as applicable, and has completed the
repurchase or redemption of all Notes properly tendered for payment in connection with
such Change of Control Offer or Asset Disposition Offer (for absence of doubt, clause
(viii)(b) shall not permit the purchase, repurchase, redemption, defeasance or other
acquisition or retirement for value of Indebtedness of the Company or any Subsidiary
Guarantor that is contractually subordinated to the Notes or to any Subsidiary Guarantee
with the proceeds from an Asset Disposition of Collateral);

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     (ix) so long as no Default or Event of Default has occurred and is continuing, the
declaration and payment of regularly scheduled or accrued dividends to holders of any
class or series of Disqualified Stock of the Company issued in accordance with
Section 3.2.

     (x) any purchase, repurchase, redemption, defeasance or other acquisition or
retirement of the Convertible Notes; and

     (xi) so long as no Default or Event of Default has occurred and is continuing,
Restricted Payments in an aggregate amount not to exceed $15.0 million.

          (c) The amount of all Restricted Payments (other than cash) will be the fair market value on
the date of such Restricted Payment of the asset(s) or securities proposed to be paid, transferred
or issued by the Company or such Restricted Subsidiary, as the case may be, pursuant to such
Restricted Payment. The fair market value of any cash Restricted Payment will be its face amount
and any non-cash Restricted Payment will be determined conclusively by the Board of Directors of
the Company acting in good faith whose resolution with respect thereto shall be delivered to the
Trustee, such determination to be based upon an opinion or appraisal issued by an accounting,
appraisal or investment banking firm of national standing if such fair market value is estimated in
good faith by the Board of Directors of the Company to exceed $20.0 million. Not later than the
date of making any Restricted Payment, the Company will deliver to the Trustee an Officers’
Certificate stating that such Restricted Payment is permitted and setting forth the basis upon
which the calculations required by this Section 3.3 were computed, together with a copy of
any fairness opinion or appraisal required by this Indenture.

          SECTION
3.4. Limitation on Restrictions on Distributions from Restricted Subsidiaries.

          (a) The Company will not, and will not permit any Restricted Subsidiary to, directly or
indirectly, create or otherwise cause or permit to exist or become effective any consensual
encumbrance or consensual restriction on the ability of any Restricted Subsidiary to:

     (i) pay dividends or make any other distributions on its Capital Stock or with respect
to any other interest in or participation in, or measured by, its profits or pay any
Indebtedness or other obligations owed to the Company or any Restricted Subsidiary (it being
understood that the priority of any Preferred Stock in receiving dividends or liquidating
distributions prior to dividends or liquidating distributions being paid on Common Stock
will not be deemed a restriction on the ability to make distributions on Capital Stock);

     (ii) make any loans or advances to the Company or any Restricted Subsidiary (it being
understood that the subordination of loans or advances made to the Company or any Restricted
Subsidiary to other Indebtedness Incurred by the Company or any Restricted Subsidiary will
not be deemed a restriction on the ability to make loans or advances); or

70

 

     (iii) transfer any of its property or assets to the Company or any Restricted
Subsidiary (it being understood that such transfers will not include any type of transfer
described in clause (i) or (ii) above).

(b) Section 3.4(a) will not prohibit:

     (i) any encumbrance or restriction pursuant to an agreement in effect at or entered
into on the Issue Date and identified on Schedule 3.4 hereto, including, without
limitation, this Indenture, the Notes, the Subsidiary Guarantees and the Security
Documents in effect on such date;

     (ii) any encumbrance or restriction with respect to a Restricted Subsidiary pursuant
to an agreement relating to any Capital Stock or Indebtedness Incurred by a Restricted
Subsidiary on or before the date on which such Restricted Subsidiary was acquired by the
Company or a Restricted Subsidiary (other than Capital Stock or Indebtedness Incurred as
consideration in, or to provide all or any portion of the funds utilized to consummate,
the transaction or series of related transactions pursuant to which such Restricted
Subsidiary became a Restricted Subsidiary or was acquired by the Company or in
contemplation of the transaction) and outstanding on such date; provided, that any such
encumbrance or restriction will not extend to any assets or property of the Company or
any other Restricted Subsidiary other than the assets and property so acquired and that,
in the case of Indebtedness, was permitted to be Incurred pursuant to this Indenture;

     (iii) any encumbrance or restriction with respect to a Restricted Subsidiary
pursuant to an agreement effecting a refunding, replacement or refinancing of
Indebtedness Incurred pursuant to an agreement referred to in clause (i) or (ii) of this
Section 3.4(b) or this clause (iii) or contained in any amendment, restatement,
modification, renewal, supplement, refunding, replacement or refinancing of an agreement
referred to in clause (i) or (ii) of Section 3.4(b) or this clause (iii);
provided, however, that the encumbrances and restrictions with respect to such Restricted
Subsidiary contained in any such agreement are not more restrictive in any material
respect, taken as a whole, to the Holders than the encumbrances and restrictions
contained in such agreements referred to in clauses (i) or (ii) of Section 3.4(b)
on the Issue Date or the date such Restricted Subsidiary became a Restricted Subsidiary
or was merged into a Restricted Subsidiary, whichever is applicable;

     (iv) encumbrances or restrictions arising or existing by reason of applicable law or
any applicable rule, regulation or order;

     (v) in the case of clause (iii) of Section 3.4(a), any encumbrance or
restriction:

               (A) that restricts in a customary manner the subletting, assignment or transfer of any
property or asset that is subject to a lease, license or similar contract, or the assignment
or transfer of any such lease, license or other contract;

               (B) contained in mortgages, pledges or other security agreements permitted under this
Indenture securing Indebtedness of the Company or a Restricted

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Subsidiary to the extent such encumbrances or restrictions restrict the transfer of the
property subject to such mortgages, pledges or other security agreements; or

               (C) pursuant to customary provisions restricting dispositions of real property
interests set forth in any reciprocal easement agreements of the Company or any Restricted
Subsidiary;

          (vi) (a) purchase money obligations for property acquired in the ordinary course of
business and (b) Capitalized Lease Obligations permitted under this Indenture, in each
case, that impose encumbrances or restrictions of the nature described in clause (iii) of
Section 3.4(a) on the property so acquired;

          (vii) any restriction with respect to a Restricted Subsidiary (or any of its
property or assets) imposed pursuant to an agreement entered into for the direct or
indirect sale or disposition of all or substantially all of the Capital Stock or assets
of such Restricted Subsidiary (or the property or assets that are subject to such
restriction) pending the closing of such sale or disposition;

          (viii) encumbrances or restrictions contained in indentures or debt instruments or
other debt arrangements Incurred or Preferred Stock issued by Subsidiary Guarantors in
accordance with Section 3.2, which encumbrances or restrictions are not more
restrictive, taken as a whole, than those applicable to the Company and its Restricted
Subsidiaries in this Indenture;

          (ix) any Purchase Money Note or other Indebtedness or contractual requirements
Incurred with respect to a Qualified Receivables Transaction relating exclusively to a
Receivables Entity that in the good faith determination of the Board of Directors are
necessary to effect such Qualified Receivables Transaction;

          (x) customary provisions limiting or prohibiting the encumbrance, disposition or
distribution of assets or property in joint venture agreements, asset sale agreements,
sale/leaseback agreements, stock sale agreements and other similar agreements entered
into in the ordinary course of business, which limitation or prohibition is applicable
only to the assets that are the subject of such agreements; and

          (xi) restrictions on cash or other deposits or net worth provisions in leases and
other agreements entered into by the Company or any Restricted Subsidiary in the ordinary
course of business.

SECTION
3.5. Limitation on Sales of Assets and Subsidiary Stock.

          (a) The Company will not, and will not permit any of its Restricted Subsidiaries to, make any
Asset Disposition of Collateral unless:

          (i) the Company or such Restricted Subsidiary, as the case may be, receives
consideration at least equal to the fair market value (such fair market value to be
determined on the date of contractually agreeing to such Asset Disposition), as

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determined in good faith by the Board of Directors (including as to the value of all
non-cash consideration), of the Collateral subject to such Asset Disposition;

     (ii) at least 75% of the consideration from such Asset Disposition received by the
Company or such Restricted Subsidiary, as the case may be, is in the form of cash or Cash
Equivalents and 100% of the Net Available Cash therefrom is deposited directly by the
Company into the Collateral Account; and

     (iii) the remaining consideration from such Asset Disposition that is not in the form
of cash or Cash Equivalents is thereupon with its acquisition pledged as Collateral.

          Any Net Available Cash deposited into a Collateral Account from any Asset Dispositions of
Collateral, Recovery Events (as described below) or Asset Swaps involving the transfer of
Collateral (as described below) may be withdrawn by the Company to be invested by the Company in
Additional Assets within 360 days of the date of such Asset Disposition, Recovery Event or Asset
Swap, which Additional Assets are thereupon with their acquisition added to the Collateral.

          All of the Net Available Cash received by the Company or such Restricted Subsidiary, as the
case may be, from any Recovery Event shall be deposited directly into a Collateral Account and may
be withdrawn by the Company or such Restricted Subsidiary to be invested in Additional Assets
(which may include performance of a Restoration of the affected Collateral) in accordance with the
preceding paragraph within 360 days of the date of such Recovery Event.

          Any Net Available Cash from Asset Dispositions of Collateral, Asset Swaps involving the
transfer of Collateral or Recovery Events that are not applied or
invested as provided in this Section 3.5(a)
or in accordance with the Security Documents will be deemed to constitute
“Excess Collateral Proceeds.” On the 361st day after an Asset Disposition, Asset Swap or
Recovery Event pursuant to this Section 3.5(a), if the aggregate amount of Excess Collateral
Proceeds exceeds $10.0 million, the Company will be required to make an offer (“Collateral
Disposition Offer”) to all holders of Notes and, to the extent required by the terms of other
Shared Lien Debt, to all holders of other Shared Lien Debt outstanding with similar provisions
requiring the Company to make an offer to purchase such Shared Lien Debt with the proceeds from any
such Asset Disposition, to purchase the maximum principal amount of Notes and any such Shared Lien
Debt to which the Collateral Disposition Offer applies that may be purchased out of the Excess
Collateral Proceeds, at an offer price in cash in an amount equal to 100% of the principal amount
of the Notes and such other Shared Lien Debt, plus accrued and unpaid interest to the date of
purchase, in accordance with the procedures set forth in the Shared Lien Documents in minimum
denominations of $2,000 and integral multiples of $1,000 in excess thereof. To the extent that the
aggregate amount of Notes and other Shared Lien Debt, if applicable, validly tendered and not
properly withdrawn pursuant to a Collateral Disposition Offer is less than the Excess Collateral
Proceeds, the Company may use any remaining Excess Collateral Proceeds for general corporate
purposes, subject to the other covenants contained in the applicable Shared Lien Documents. If the
aggregate principal amount of Notes surrendered by holders thereof and other Shared Lien Debt
surrendered by holders or lenders, collectively, exceeds the amount of Excess Collateral Proceeds
as set forth in an Officers’ Certificate, the
Trustee shall select the Notes to be purchased on a pro rata basis on the basis of the
aggregate

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principal amount of tendered Notes and the agent for the Shared Lien Debt shall select
the Shared Lien Debt to be purchased on a pro rata basis on the basis of the aggregate principal
amount of tendered Shared Lien Debt. Upon completion of such Collateral Disposition Offer, the
amount of Excess Collateral Proceeds shall be reset at zero.

          (b) Notwithstanding Section 3.5(a), at any time prior to the 361st day after any Asset
Disposition, Asset Swap or Recovery Event involving the transfer of Collateral, the Company may, at
its option and in satisfaction of its obligation to make a Collateral Disposition Offer pursuant to
Section 3.5(a), use any Excess Collateral Proceeds from such Asset Disposition, Asset Swap
or Recovery Event to make an offer (an “Early Collateral Disposition Offer”) to all holders
of Notes and, to the extent required by the terms of other Shared Lien Debt, to all holders of
other Shared Lien Debt outstanding with similar provisions requiring the Company to make an offer
to purchase such Shared Lien Debt with the proceeds from any such Asset Disposition, to purchase
the maximum principal amount of Notes and any such Shared Lien Debt to which the Collateral
Disposition Offer applies that may be purchased out of the Excess Collateral Proceeds, at an offer
price in cash in an amount equal to or exceeding 100% of the principal amount of the Notes and such
other Shared Lien Debt, plus accrued and unpaid interest to the date of purchase, in accordance
with the procedures set forth in the Shared Lien Documents in minimum denominations of $2,000 and
integral multiples of $1,000 in excess thereof. To the extent that the aggregate amount of Notes
and other Shared Lien Debt, if applicable, validly tendered and not properly withdrawn pursuant to
an Early Collateral Disposition Offer is less than the Excess Collateral Proceeds used to make such
Early Collateral Disposition Offer, the Company may use any such remaining Excess Collateral
Proceeds for general corporate purposes, subject to other covenants contained in the applicable
Shared Lien Documents; provided that such remaining Excess Collateral Proceeds shall not be deemed
to be Excess Collateral Proceeds for purposes of the requirement to make a Collateral Disposition
Offer. If the aggregate principal amount of Notes surrendered by holders thereof and other Shared
Lien Debt surrendered by holders or lenders, collectively, exceeds the amount of Excess Collateral
Proceeds used to make such Early Collateral Disposition Offer, the Trustee shall select the Notes
to be purchased on a pro rata basis on the basis of the aggregate principal amount of tendered
Notes and the agent for the Shared Lien Debt shall select the Shared Lien Debt to be purchased on a
pro rata basis on the basis of the aggregate principal amount of tendered Shared Lien Debt. Upon
completion of such Early Collateral Disposition Offer, any Notes acquired by the Company shall be
canceled and will not be used to secure the Notes.

          (c) The Company will not, and will not permit any of its Restricted Subsidiaries to, make any
Asset Disposition (other than an Asset Disposition of Collateral) unless:

     (i) the Company or such Restricted Subsidiary, as the case may be, receives
consideration at least equal to the fair market value (such fair market value to be
determined on the date of contractually agreeing to such Asset Disposition), as determined
in good faith by the Board of Directors (including as to the value of all non-cash
consideration), of the shares and assets subject to such Asset Disposition;

     (ii) at least 75% of the consideration from such Asset Disposition received by the
Company or such Restricted Subsidiary, as the case may be, is in the form of cash or

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Cash Equivalents. For purposes of this provision only, each of the following shall be
deemed to be cash:

               (A) the amount of any liabilities, as shown on the Company’s most recent consolidated
balance sheet or in the notes thereto, of the Company or such Restricted Subsidiary (other
than contingent liabilities and liabilities that are by their terms subordinated to the
Notes or any Subsidiary Guarantee) that are assumed by the transferee of any such assets
pursuant to a customary novation agreement that releases the Company or such Restricted
Subsidiary from further liability;

               (B) any securities, notes or other obligations received by the Company or any such
Restricted Subsidiary from such transferee that are converted by the Company or such
Restricted Subsidiary into cash or Cash Equivalents (to the extent of the cash or Cash
Equivalents received in that conversion) within 180 days of their receipt; and

               (C) any stock or assets received as consideration for such Asset Sale that would
otherwise constitute a permitted application of Net Available Cash (or other cash in such
amount) under clause (iii)(C) below; and

     (iii) an amount equal to 100% of the Net Available Cash from such Asset Disposition is
applied by the Company or such Restricted Subsidiary, as the case may be, within 360 days
after receipt:

               (A) to the extent the Company or any Restricted Subsidiary, as the case may be, elects
(or is required by the terms of any Indebtedness), to prepay, repay, purchase, repurchase,
redeem, retire, defease or otherwise acquire Indebtedness of the Company or any Restricted
Subsidiary (other than any Disqualified Stock or any Indebtedness that is contractually
subordinated to the Notes or to any Subsidiary Guarantee) (in each case other than
Indebtedness owed to the Company or an Affiliate of the Company); provided, however, that,
in connection with any prepayment, repayment, purchase, repurchase, redemption, retirement,
defeasance or other acquisition of Indebtedness pursuant to this clause (i), the Company or
such Restricted Subsidiary will retire such Indebtedness and will cause the related
commitment (if any) to be permanently reduced in an amount equal to the principal amount so
prepaid, repaid, purchased, repurchased, redeemed, retired, defeased or otherwise acquired;

               (B) to invest in Additional Assets;

               (C) to make a capital expenditure; or

               (D) in any combination of applications and investments specified in the preceding
clauses;

provided that pending the final application of any such Net Available Cash in accordance with
clause (iii) of this Section 3.5(c), the Company and its Restricted Subsidiaries may
temporarily reduce Indebtedness or otherwise invest such Net Available Cash in any manner not
prohibited by this Indenture.

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          Any Net Available Cash from Asset Dispositions (other than Asset Dispositions of Collateral)
that are not applied or invested as provided in this Section 3.5(c) will be deemed to constitute
“Excess Proceeds.” On the 361st day after such an Asset Disposition, if the aggregate
amount of Excess Proceeds exceeds $10.0 million, the Company will be required to make an offer
(“Asset Disposition Offer”) to all holders of Notes and, to the extent required by the
terms of other Shared Lien Debt, to all holders of other Shared Lien Debt outstanding with similar
provisions requiring the Company to make an offer to purchase such Shared Lien Debt with the
proceeds from any such Asset Disposition, to purchase the maximum principal amount of Notes and any
such Shared Lien Debt to which the Asset Disposition Offer applies that may be purchased out of the
Excess Proceeds, at an offer price in cash in an amount equal to 100% of the principal amount of
the Notes and such other Shared Lien Debt, plus accrued and unpaid interest to the date of
purchase, in accordance with the procedures set forth in the Shared Lien Documents in minimum
denominations of $2,000 and integral multiples of $1,000 in excess thereof. To the extent that the
aggregate amount of Notes and other Shared Lien Debt, if applicable, so validly tendered and not
properly withdrawn pursuant to an Asset Disposition Offer is less than the Excess Proceeds, the
Company may use any remaining Excess Proceeds for general corporate purposes, subject to the other
covenants contained in the applicable Shared Lien Documents. If the aggregate principal amount of
Notes surrendered by holders thereof and other Shared Lien Debt surrendered by holders or lenders,
collectively, exceeds the amount of Excess Proceeds as set forth in an Officers’ Certificate, the
Trustee shall select the Notes to be purchased on a pro rata basis on the basis of the aggregate
principal amount of tendered Notes and the agent for the Shared Lien Debt shall select the Shared
Lien Debt to be purchased on a pro rata basis on the basis of the aggregate principal amount of
tendered Shared Lien Debt. Upon completion of such Asset Disposition Offer, the amount of Excess
Proceeds shall be reset at zero.

          (d) Notwithstanding Section 3.5(c), at any time prior to the 361st day after any Asset
Disposition (other than an Asset Disposition of Collateral), the Company may, at its option and in
satisfaction of its obligation to make an Asset Disposition Offer pursuant to Section
3.5(c), use any Excess Proceeds from such Asset Disposition to make an offer (an “Early
Asset Disposition Offer”) to all holders of Notes and, to the extent required by the terms of
other Shared Lien Debt, to all holders of other Shared Lien Debt outstanding with similar
provisions requiring the Company to make an offer to purchase such Shared Lien Debt with the
proceeds from any such Asset Disposition, to purchase the maximum principal amount of Notes and any
such Shared Lien Debt to which the Asset Disposition Offer applies that may be purchased out of the
Excess Proceeds, at an offer price in cash in an amount equal to or exceeding 100% of the principal
amount of the Notes and such other Shared Lien Debt, plus accrued and unpaid interest to the date
of purchase, in accordance with the procedures set forth in the Shared Lien Documents in minimum
denominations of $2,000 and integral multiples of $1,000 in excess thereof. To the extent that the
aggregate amount of Notes and other Shared Lien Debt, if applicable, so validly tendered and not
properly withdrawn pursuant to an Early Asset Disposition Offer is less than the Excess Proceeds
used to make such Early Asset Disposition Offer, the Company may use any such remaining Excess
Proceeds for general corporate purposes, subject to the other covenants contained in the applicable
Shared Lien Documents; provided that such remaining Excess Proceeds shall not be deemed to be
Excess Proceeds for purposes of the requirement to make an Asset Disposition Offer. If the
aggregate principal amount of Notes surrendered by holders thereof and other Shared Lien Debt
surrendered by holders or lenders, collectively, exceeds the

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amount of Excess Proceeds used to make such Early Asset Disposition Offer, the Trustee shall
select the Notes to be purchased on a pro rata basis on the basis of the aggregate principal amount
of tendered Notes and the agent for the Shared Lien Debt shall select the Shared Lien Debt to be
purchased on a pro rata basis on the basis of the aggregate principal amount of tendered Shared
Lien Debt. Upon completion of such Early Asset Disposition Offer, any Notes acquired by the Company
shall be canceled and will not be used to secure the Notes.

          (e) Any Collateral Disposition Offer, Early Collateral Disposition Offer, Asset Disposition
Offer or Early Asset Disposition Offer will remain open for a period of 20 Business Days following
its commencement, except to the extent that a longer period is required by applicable law (the
“Asset Disposition Offer Period”). No later than five Business Days after the termination
of the Asset Disposition Offer Period (the “Asset Disposition Purchase Date”), the Company
will purchase the principal amount of Notes and other Shared Lien Debt, if any, required to be
purchased pursuant to this Section 3.5 (the “Asset Disposition Offer Amount”) or, if
less than the Asset Disposition Offer Amount has been so validly tendered, all Notes and other
Shared Lien Debt, if applicable, validly tendered in response to the Collateral Disposition Offer,
Early Collateral Disposition Offer, Asset Disposition Offer or Early Asset Disposition Offer, as
applicable.

          If the Asset Disposition Purchase Date is on or after an interest record date and on or before
the related interest payment date, any accrued and unpaid interest will be paid on such Asset
Disposition Purchase Date to the Person in whose name a Note is registered at the close of business
on such record date, and no additional interest will be payable to holders who tender Notes
pursuant to the Collateral Disposition Offer, Early Collateral Disposition Offer, Asset Disposition
Offer or Early Asset Disposition Offer.

          On or before the Asset Disposition Purchase Date, the Company will, to the extent lawful,
accept for payment, on a pro rata basis to the extent necessary, the Asset Disposition Offer Amount
of Notes and other Shared Lien Debt or portions of Notes and other Shared Lien Debt so validly
tendered and not properly withdrawn pursuant to the Collateral Disposition Offer, Early Collateral
Disposition Offer, Asset Disposition Offer or Early Asset Disposition Offer, or if less than the
Asset Disposition Offer Amount has been validly tendered and not properly withdrawn, all Notes and
other Shared Lien Debt so validly tendered and not properly withdrawn, in each case in minimum
denominations of $2,000 and integral multiples of $1,000 in excess thereof. The Company will
deliver to the Trustee an Officers’ Certificate stating that such Notes or portions thereof were
accepted for payment by the Company in accordance with the terms of this Section 3.5 and,
in addition, the Company will deliver all certificates and notes required, if any, by the
agreements governing such other Shared Lien Debt. The Company or the Paying Agent, as the case may
be, will promptly (but in any case not later than five Business Days after termination of the Asset
Disposition Offer Period) mail or deliver to each tendering holder or lender of Notes or other
Shared Lien Debt, as the case may be, an amount equal to the purchase price of the Notes, or such
other Shared Lien Debt so validly tendered and not properly withdrawn by such holder or lender, as
the case may be, and accepted by the Company for purchase, and the Company will promptly issue a
new Note, and the Trustee, upon delivery of an Officers’ Certificate from the Company will
authenticate and mail or deliver such new Note to such holder, in a principal amount equal to any
unpurchased portion of the Note surrendered; provided that each such new Note will be in a
principal amount of $2,000 or an integral multiple

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of $1,000 in excess thereof. In addition, the Company will take any and all other actions
required by the agreements governing any other Shared Lien Debt. Any Note not so accepted will be
promptly mailed or delivered by the Company to the holder thereof. The Company will publicly
announce the results of the Collateral Disposition Offer, Early Collateral Disposition Offer, Asset
Disposition Offer or Early Asset Disposition Offer, as the case may be, on the Asset Disposition
Purchase Date.

          (f) The Company will not, and will not permit any Restricted Subsidiary to, engage in any
Asset Swaps, unless:

     (i) at the time of entering into such Asset Swap and immediately after giving effect to
such Asset Swap, no Default or Event of Default shall have occurred and be continuing or
would occur as a consequence thereof;

     (ii) in the event such Asset Swap involves the transfer by the Company or any
Restricted Subsidiary of assets having an aggregate fair market value, as determined by the
Board of Directors of the Company in good faith, in excess of $10.0 million, the terms of
such Asset Swap have been approved by a majority of the members of the Board of Directors of
the Company;

     (iii) in the event such Asset Swap involves the transfer by the Company or any
Restricted Subsidiary of assets having an aggregate fair market value, as determined by the
Board of Directors of the Company in good faith, in excess of $20.0 million, the Company has
received a written opinion from an independent investment banking firm of nationally
recognized standing that such Asset Swap is fair to the Company or such Restricted
Subsidiary, as the case may be, from a financial point of view; and

     (iv) in the event such Asset Swap involves the transfer by the Company or any
Restricted Subsidiary of Collateral, (1) any Related Business Assets received by the Company
or any Restricted Subsidiary shall be pledged as Collateral securing the Notes and (2) any
Net Available Cash received by the Company or any Restricted Subsidiary shall be deposited
directly into a Collateral Account and may be withdrawn by the Company or such Restricted
Subsidiary to be invested in Additional Assets in the manner set
forth under Section 3.5(a)
above.

     (g) The Company will comply, to the extent applicable, with the requirements of Section 14(e)
of the Exchange Act and any other securities laws or regulations in connection with the repurchase
of Notes pursuant to this Indenture. To the extent that the provisions of any securities laws or
regulations conflict with provisions of this Section 3.5, the Company will comply with the
applicable securities laws and regulations and will not be deemed to have breached its obligations
under this Indenture by virtue of any conflict.

     (h) The Company will provide certain opinions and certificates to the Trustee in connection
with an Asset Disposition or Asset Swap pursuant to this Section 3.5 as provided in this
Indenture.

     SECTION 3.6. Limitation on Liens. The Company will not, and will not permit any of its Restricted Subsidiaries to, directly
or indirectly, create, Incur or suffer to exist any Lien

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(other than Permitted Liens) upon any of
its property or assets (including Capital Stock of Subsidiaries), whether owned on the Issue Date
or acquired after that date, which Lien is securing any Indebtedness.

          SECTION 3.7. Limitation on Sale/Leaseback Transaction. The Company will not, and will not permit any of its Restricted Subsidiaries to, enter into any
Sale/Leaseback Transaction unless:

          (a) the Company or such Restricted Subsidiary, as the case may be, receives consideration at
the time of such Sale/Leaseback Transaction at least equal to the fair market value (as evidenced
by a resolution of the Board of Directors of the Company) of the property subject to such
transaction;

          (b) the Company or such Restricted Subsidiary could have Incurred Indebtedness in an amount
equal to the Attributable Indebtedness in respect of such Sale/Leaseback Transaction pursuant to
Section 3.2;

          (c) the Company or such Restricted Subsidiary would be permitted to create a Lien on the
property subject to such Sale/Leaseback Transaction securing such Attributable Indebtedness without
securing the Notes pursuant to Section 3.6; and

          (d) the Sale/Leaseback Transaction is treated as an Asset Disposition and all of the
conditions in Section 3.5 (including the provisions concerning the application of Net
Available Cash) are satisfied with respect to such Sale/Leaseback Transaction, treating all of the
consideration received in such Sale/Leaseback Transaction as Net Available Cash for purposes of
Section 3.5.

          SECTION
3.8. Limitation on Affiliate Transactions.

          (a) The Company will not, and will not permit any of its Restricted Subsidiaries to, directly
or indirectly, enter into or conduct any transaction (including the purchase, sale, lease or
exchange of any property or the rendering of any service) with any Affiliate of the Company (an
“Affiliate Transaction”), unless:

     (i) the terms of such Affiliate Transaction are not materially less favorable to the
Company or such Restricted Subsidiary, as the case may be, than those that could be obtained
in a comparable transaction at the time of such transaction in arm’s-length dealings with a
Person who is not such an Affiliate;

     (ii) in the event such Affiliate Transaction or series of related Affiliate
Transactions involves an aggregate consideration in excess of $10.0 million, the terms of
such transaction have been approved by a majority of the members of the Board of Directors
of the Company and by a majority of the members of such Board having no personal stake in
such transaction or transactions, if any (and such majority or majorities, as the case may
be, determines that such Affiliate Transaction or series of related Affiliate Transactions
satisfies the criteria in clause (i) of this Section 3.8(a)); and

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          (iii) in the event such Affiliate Transaction or series of related Affiliate
Transactions involves an aggregate consideration in excess of $20.0 million, the Company has
received a written opinion from an independent investment banking, accounting or appraisal
firm of nationally recognized standing that such Affiliate Transaction or series of related
Affiliate Transactions is not materially less favorable than those that might reasonably
have been obtained in a comparable transaction at such time on an arm’s-length basis from a
Person that is not an Affiliate.

     (b) Section 3.8(a) will not apply to:

     (i) any issuance of securities, or other payments, awards or grants in cash, securities
or otherwise pursuant to, or the funding of, employment agreements and other compensation
arrangements, options to purchase Capital Stock of the Company, restricted stock plans,
long-term incentive plans, stock appreciation rights plans, participation plans or similar
employee benefits plans and/or indemnity provided on behalf of officers and employees
approved by the Board of Directors of the Company;

     (ii) any transaction between the Company and a Restricted Subsidiary (other than a
Receivables Entity) or between Restricted Subsidiaries (other than a Receivables Entity or
Receivables Entities) and Guarantees issued by the Company or a Restricted Subsidiary for
the benefit of the Company or a Restricted Subsidiary, as the case may be, in accordance
with Section 3.2;

     (iii) the payment of reasonable and customary fees paid to, and indemnity provided on
behalf of, officers, directors, employees or consultants of the Company or any Restricted
Subsidiary;

     (iv) pledges of Capital Stock of Unrestricted Subsidiaries;

     (v) sales or other transfers or dispositions of accounts receivable and other related
assets customarily transferred in an asset securitization transaction involving accounts
receivable to a Receivables Entity in a Qualified Receivables Transaction; acquisitions of
Permitted Investments in connection with a Qualified Receivables Transaction; servicing,
collection and other services in connection with a Qualified Receivables Transaction (and
any fees paid or payable in connection therewith); and any repurchase of Receivables by the
Company or a Restricted Subsidiary in connection with a Qualified Receivables Transaction;

     (vi) the existence of, and the performance of obligations of the Company or any of its
Restricted Subsidiaries under the terms of, any agreement to which the Company or any of its
Restricted Subsidiaries is a party as of or on the Issue Date, as these agreements may be
amended, modified, supplemented, extended or renewed from time to time; provided, however,
that any future amendment, modification, supplement, extension or renewal entered into after
the Issue Date will be permitted to the extent that its terms are not more disadvantageous
to the Holders than the terms of the agreements in effect on the Issue Date;

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     (vii) any Restricted Payment (other than a Restricted Investment) permitted to be made
pursuant to Section 3.3;

     (viii) loans or advances to employees, officers or directors of the Company or any
Restricted Subsidiary in the ordinary course of business consistent with past practices, in
an aggregate amount not in excess of $5.0 million with respect to all loans or advances at
any time outstanding; provided, however, that the Company and its Subsidiaries will comply
in all material respects with all provisions of the Sarbanes-Oxley Act of 2002, as amended,
and the rules and regulations promulgated in connection therewith relating to the provision
of any such loans and advances; and

     (ix) transactions with customers, clients, suppliers or purchasers or sellers of goods
or services, in each case in the ordinary course of the business of the Company and its
Restricted Subsidiaries and otherwise in compliance with the terms of this Indenture;
provided that in the reasonable determination of the members of the Board of Directors or
senior management of the Company, such transactions are on terms that are no less favorable
to the Company or the relevant Restricted Subsidiary than those that would have been
obtained in a comparable transaction by the Company or such Restricted Subsidiary with an
unrelated Person.

     SECTION 3.9. Limitation on Sale of Capital Stock of Restricted Subsidiaries.

     (a) The Company will not, and will not permit any Restricted Subsidiary to, transfer, convey,
sell, lease or otherwise dispose of any Voting Stock of any Restricted Subsidiary or, with respect
to a Restricted Subsidiary, to issue any of the Voting Stock of a Restricted Subsidiary (other
than, if necessary, shares of its Voting Stock constituting directors’ qualifying shares) to any
Person except:

     (i) to the Company or a Wholly Owned Subsidiary (other than a Receivables Entity); or

     (ii) in compliance with Section 3.5 and immediately after giving effect to such
issuance or sale, such Restricted Subsidiary would continue to be a Restricted Subsidiary.

     (b) Notwithstanding Section 3.9(a), the Company and its Restricted Subsidiaries may
sell all the Voting Stock of a Restricted Subsidiary as long as the Company or its Restricted
Subsidiaries comply with the terms of Section 3.5. In that case, such Restricted
Subsidiary, if a Subsidiary Guarantor, will be automatically released from all its obligations
under this Indenture, its Subsidiary Guarantee, the Security Documents and the Liens, if any, on
the Collateral pledged by such Subsidiary Guarantor pursuant to the Security Documents will be
released with respect to the Notes if all the obligations of such Subsidiary Guarantor under any
Qualified Receivables Transaction and any other agreements relating to any other Indebtedness of
the Company or its Restricted Subsidiaries terminate upon consummation of such sale.

     SECTION 3.10. Limitation on Lines of Business. The Company will not, and will not
permit any Restricted Subsidiary to, engage in any business other than a Related Business.

     SECTION 3.11. Change of Control.

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     (a) If a Change of Control occurs, unless the Company has exercised its right to redeem all of
the Notes pursuant to Article V and Section 5 of the Notes, each Holder will have the right
to require the Company to repurchase all or any part (equal to $2,000 or an integral multiple of
$1,000 in excess thereof) of such Holder’s Notes at a purchase price in cash equal to 101% of the
principal amount of the Notes plus accrued and unpaid interest, if any, to the date of purchase
(subject to the right of holders of Notes on the relevant record date to receive interest due on
the relevant interest payment date) (the “Change of Control Payment”).

     (b) Within 45 days following any Change of Control, unless the Company has exercised its right
to redeem all of the Notes pursuant to Article V and Section 5 of the Notes, the Company
will mail a notice (the “Change of Control Offer”) to each Holder, with a copy to the
Trustee, stating:

     (i) that a Change of Control has occurred and that such Holder has the right to require
the Company to purchase such Holder’s Notes at a purchase price in cash equal to the Change
of Control Payment;

     (ii) the repurchase date (which shall be no earlier than 30 days nor later than 60 days
from the date such notice is mailed) (the “Change of Control Payment Date”); and

     (iii) the procedures, consistent with this Indenture, that a Holder must follow in
order to have its Notes repurchased.

     (c) On the Change of Control Payment Date, the Company will, to the extent lawful:

     (i) accept for payment all Notes or portions of Notes (in minimum denominations of
$2,000 or in integral multiples of $1,000 in excess thereof) properly tendered pursuant to
the Change of Control Offer;

     (ii) deposit with the Paying Agent an amount equal to the Change of Control Payment in
respect of all Notes or portions of Notes so tendered; and

     (iii) deliver or cause to be delivered to the Trustee (by book entry or otherwise) the
Notes so accepted together with an Officers’ Certificate stating the aggregate principal
amount of Notes or portions of Notes being purchased by the Company.

     (d) The Paying Agent will promptly mail to each holder of Notes so tendered the Change of
Control Payment for such Notes, and the Trustee will promptly authenticate and mail (or cause to be
transferred by book entry) to each holder a new Note equal in principal amount to any unpurchased
portion of the Notes surrendered, if any; provided that each such new Note will be in a principal
amount of $2,000 or an integral multiple of $1,000 in excess thereof.

     (e) If the Change of Control Payment Date is on or after an interest record date and on or
before the related interest payment date, any accrued and unpaid interest, if any, will be paid on
such Change of Control Payment Date to the Person in whose name a Note is registered at the close
of business on such record date, and no additional interest will be payable to holders who tender
pursuant to the Change of Control Offer.

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     (f) This Section 3.11 will be applicable whether or not any other provisions of this
Indenture are applicable.

     (g) The Company will not be required to make a Change of Control Offer upon a Change of
Control if a third party makes the Change of Control Offer in the manner, at the times and
otherwise in compliance with the requirements set forth in this Indenture applicable to a Change of
Control Offer made by the Company and purchases all Notes validly tendered and not withdrawn under
such Change of Control Offer.

     (h) The Company will comply, to the extent applicable, with the requirements of Rule 14e-1
under the Exchange Act and any other securities laws or regulations in connection with the
repurchase of Notes pursuant to this Section 3.11. To the extent that the provisions of any
securities laws or regulations conflict with provisions of this Indenture, the Company will comply
with the applicable securities laws and regulations and will not be deemed to have breached its
obligations described in this Indenture by virtue of the conflict.

     SECTION 3.12. SEC Reports.

     (a) Notwithstanding that the Company may not be subject to the reporting requirements of
Section 13 or 15(d) of the Exchange Act, to the extent permitted by the Exchange Act, the Company
will file with the SEC, and make available to the Trustee and the registered holders of the Notes,
the quarterly, annual and current reports and the information, documents and other reports (or
copies of such portions of any of the foregoing as the SEC may by rules and regulations prescribe)
that are specified in Sections 13 and 15(d) of the Exchange Act with respect to U.S. issuers within
the time periods specified therein or in the relevant forms. In the event that the Company is not
permitted to file such reports, documents and information with the SEC pursuant to the Exchange
Act, the Company will nevertheless make available such Exchange Act information to the Trustee and
the holders of the Notes as if the Company were subject to the reporting requirements of Section 13
or 15(d) of the Exchange Act within the time periods specified therein or in the relevant forms.
The financial information filed with the SEC or delivered to holders pursuant to this Section
3.12 shall include consolidated financial statements for the Company, the Subsidiary Guarantors
and Subsidiaries that are not Subsidiary Guarantors in the form prescribed by the SEC.

     (b) If the Company has designated any of its Subsidiaries as Unrestricted Subsidiaries, then
the quarterly and annual financial information required by the preceding paragraph will include a
reasonably detailed presentation, either on the face of the financial statements or in the
footnotes to the financial statements and in Management’s Discussion and Analysis of Financial
Condition and Results of Operations, of the financial condition and results of operations of the
Company and its Restricted Subsidiaries.

     (c) 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
conclusively rely upon an Officers’ Certificate).

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     SECTION 3.13. Future Subsidiary Guarantors. The Company will cause each Material
Restricted Subsidiary (other than a Receivables Entity or Foreign Subsidiary that does not
guarantee any Indebtedness of the Company or any Restricted Subsidiary) created, designated or
acquired by the Company or one or more of its Restricted Subsidiaries to execute and deliver to the
Trustee a Subsidiary Guarantee pursuant to which such Subsidiary Guarantor will unconditionally
Guarantee, on a joint and several basis with the other Subsidiary Guarantors, the full and prompt
payment of the principal of, and premium and interest, if any, on, the Notes on a senior secured
basis. In addition, the Company will (A) pledge the Capital Stock of each Material Restricted
Subsidiary (other than any Receivables Entity) and 65% of each First Tier Foreign Subsidiary
pursuant to the Security Documents and (B) cause each such Material Restricted Subsidiary (other
than any Receivables Entity) to become a party to the applicable Security Documents, and in each
case take such actions necessary or advisable to grant to the Collateral Trustee, for the benefit
of itself and the holders of the Notes and any other Shared Lien Obligations, a perfected security
interest in any Collateral held by such Material Restricted Subsidiary or such Capital Stock, as
applicable, subject to Permitted Liens.

     The obligations of each Subsidiary Guarantor will be limited to the maximum amount as will,
after giving effect to all other contingent and fixed liabilities of such Subsidiary Guarantor and
after giving effect to any collections from or payments made by or on behalf of any other
Subsidiary Guarantor in respect of the obligations of such other Subsidiary Guarantor under its
Subsidiary Guarantee or pursuant to its contribution obligations under this Indenture, result in
the obligations of such Subsidiary Guarantor under its Subsidiary Guarantee not constituting a
fraudulent conveyance or fraudulent transfer under federal or state law.

     Each Subsidiary Guarantee shall be released in accordance with Section 10.2.

     SECTION 3.14. Maintenance of Office or Agency. The Company shall maintain an office or
agency where the Notes may be presented or surrendered for payment, where, if applicable, the Notes
may be surrendered for registration of transfer or exchange and where notices and demands to or
upon the Company in respect of the Notes and this Indenture may be served. The agency of The Bank
of New York Mellon Trust Company, N.A. (the “Agent”), currently located at 227 West Monroe,
Suite 2600, Chicago, Illinois 60606, Attention: Corporation Trust Administration (or at such
address in the Borough of Manhattan, The City of New York as the Agent shall designate upon request
therefor from the Company or any Holder), shall be such office or agency of the Company, unless the
Company shall designate and maintain some other office or agency for one or more of such purposes.
The Company shall give prompt written notice to the Trustee of any change in the location of any
such office or agency. If at any time the Company shall fail to maintain any such required office
or agency or shall fail to furnish the Trustee with the address thereof, such presentations,
surrenders, notices and demands may be made or served at the Agent of the Trustee, and the Company
hereby appoints the Trustee as its agent to receive all such presentations, surrenders, notices and
demands.

     The Company may also from time to time designate one or more other offices or agencies where
the Notes may be presented or surrendered for any or all such purposes and may from time to time
rescind any such designation. The Company shall give prompt written notice to the
Trustee of any such designation or rescission and any change in the location of any such other
office or agency.

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     SECTION 3.15. Corporate Existence. Except as otherwise provided in Article
III, Article IV and Section 10.2(b), the Company shall do or cause to be done
all things necessary to preserve and keep in full force and effect its corporate existence and the
corporate, partnership, limited liability company or other existence of each Subsidiary Guarantor,
if any, in accordance with their respective organizational documents (as the same may be amended
from time to time) and the rights (charter and statutory) licenses and franchises of the Company
and each such Subsidiary Guarantor; provided, however, that the Company shall not be required to
preserve any such right, license or franchise or the corporate, partnership, limited liability
company or other existence of any Subsidiary Guarantor if the Board of Directors of the Company
shall determine that the preservation thereof is no longer desirable in the conduct of the business
of the Company and each of its Restricted Subsidiaries, taken as a whole, and that the loss thereof
is not, and will not be, disadvantageous in any material respect to the Holders; provided, further,
that the foregoing shall not prohibit a sale, transfer, or conveyance of a Restricted Subsidiary or
any of its assets in compliance with the terms of this Indenture.

     SECTION 3.16. Payment of Taxes and Other Claims. The Company shall pay or discharge
or cause to be paid or discharged, before the same shall become delinquent, (i) all material taxes,
assessments and governmental charges levied or imposed upon the Company or any Restricted
Subsidiary or upon the income, profits or property of the Company or any Restricted Subsidiary and
(ii) all lawful claims for labor, materials and supplies, which, if unpaid, might by law become a
material liability or lien upon the property of the Company or any Restricted Subsidiary; provided,
however, that the Company shall not be required to pay or discharge or cause to be paid or
discharged any such tax, assessment, charge or claim the amount, applicability or validity of which
is being contested in good faith by appropriate actions and for which appropriate reserves, if
necessary (in the good faith judgment of management of the Company), are being maintained in
accordance with GAAP or where the failure to effect such payment will not be disadvantageous to the
Holders.

     SECTION 3.17. Payments for Consent. Neither the Company nor any of its Restricted
Subsidiaries will, directly or indirectly, pay or cause to be paid any consideration, whether by
way of interest, fees or otherwise, to any Holder for or as an inducement to any consent, waiver or
amendment of any of the terms or provisions of this Indenture, the Notes, the Subsidiary Guarantees
or the Security Documents unless such consideration is offered to be paid or is paid to all Holders
that consent, waive or agree to amend in the time frame set forth in the solicitation documents
relating to such consent, waiver or amendment.

     SECTION 3.18. Compliance Certificate. The Company shall deliver to the Trustee within
120 days after the end of each fiscal year of the Company an Officers’ Certificate stating that in
the course of the performance by the signers of their duties as Officers of the Company they would
normally have knowledge
of any Default or Event of Default and whether or not the signers know of any Default or Event
of Default that occurred during the previous fiscal year. If they do, the certificate shall
describe the Default or Event of Default, its status and the action the Company is taking or
proposes to take with respect thereto.

     SECTION 3.19. Further Instruments and Acts. The Company shall execute and deliver
such further instruments and do such further acts as the Trustee may request as reasonably
necessary or proper to comply with any future developments or requirements.

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     SECTION 3.20. Statement by Officers as to Default. The Company shall deliver to the
Trustee, as soon as possible and in any event within 30 days after the occurrence of any Event of
Default or an event which, with notice or the lapse of time or both, would constitute an Event of
Default, an Officers’ Certificate setting forth the details of such Event of Default or Default,
its status and the actions which the Company is taking or proposes to take with respect thereto.

ARTICLE IV

SUCCESSOR COMPANY

     SECTION 4.1. Merger and Consolidation.

     (a) The Company will not, directly or indirectly, consolidate with or merge with or into, or
convey, transfer or lease all or substantially all its assets to, any Person, unless:

     (i) the resulting, surviving or transferee Person (the “Successor Company”)
will be a corporation, organized and existing under the laws of the United States of
America, any State of the United States or the District of Columbia and the Successor
Company (if not the Company) will expressly assume, by supplemental indenture, executed and
delivered to the Trustee, in form satisfactory to the Trustee, all of the obligations of the
Company under the Notes and this Indenture and will expressly assume, by written agreement,
all the obligations of the Company under the Security Documents and will cause such
amendments, supplements or other instruments to be executed, filed, and recorded in such
jurisdictions as may be required by applicable law to preserve and protect the Lien on the
Collateral owned by or transferred to the Successor Company, together with such financing
statements or comparable documents as may be required to perfect any security interests in
such Collateral which may be
perfected by the filing of a financing statement or a similar document under the
Uniform Commercial Code or other similar statute or regulation of the relevant states or
jurisdictions;

     (ii) immediately after giving effect to such transaction (and treating any Indebtedness
that becomes an obligation of the Successor Company or any Subsidiary of the Successor
Company as a result of such transaction as having been Incurred by the Successor Company or
such Subsidiary at the time of such transaction), no Default or Event of Default will have
occurred and be continuing;

     (iii) immediately after giving effect to such transaction, the Successor Company would:

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          (A) have a consolidated net worth equal to or greater than the consolidated net worth
of the Company and the Restricted Subsidiaries immediately before the transaction; and

          (B) (1) be able to Incur at least $1.00 of additional Indebtedness pursuant to
Section 3.2(a) or (2) have a Consolidated Leverage Ratio less than the Consolidated
Leverage Ratio of the Company and the Restricted Subsidiaries immediately prior to such
acquisition or merger;

     (iv) each Subsidiary Guarantor (unless it is the other party to the transactions above,
in which case clause (i) will apply) will have by supplemental indenture confirmed that its
Subsidiary Guarantee will apply to such Person’s obligations in respect of this Indenture
and the Notes and will have by written agreement confirmed that its obligations under the
Security Documents will continue to be in effect and will cause such amendments, supplements
or other instruments to be executed, filed, and recorded in such jurisdictions as may be
required by applicable law to preserve and protect the Lien on the Collateral owned by such
Subsidiary Guarantor, together with such financing statements or comparable documents as may
be required to perfect any security interests in such Collateral which may be perfected by
the filing of a financing statement or a similar document under the Uniform Commercial Code
or other similar statute or regulation of the relevant states or jurisdictions; and

     (v) the Company will have delivered to the Trustee an Officers’ Certificate and an
Opinion of Counsel, each stating that such consolidation, merger or transfer and such
supplemental indenture (if any) comply with this Indenture.

     (b) For purposes of this Section 4.1, the sale, lease, conveyance, assignment,
transfer, or other disposition of all or substantially all of the properties and assets of one or
more Subsidiaries of the Company, in a single or a series of related transactions, which properties
and assets, if held by the Company instead of such Subsidiaries, would constitute all or
substantially all of the properties and assets of the Company on a consolidated basis, will be
deemed to be the transfer of all or substantially all of the properties and assets of the Company.

     (c) The predecessor Company will be released from its obligations under this Indenture and the
Successor Company will succeed to, and be substituted for, and may exercise
every right and power of, the Company under this Indenture and the Security Documents, but, in
the case of a lease of all or substantially all its assets, the predecessor Company will not be
released from the obligation to pay the principal of and interest on the Notes.

     (d) Notwithstanding Section 4.1(a)(iii), (i) any Restricted Subsidiary may consolidate
with, merge into or transfer all or part of its properties and assets to the Company and (ii) the
Company may merge with an Affiliate incorporated solely for the purpose of reincorporating the
Company in another jurisdiction to realize tax benefits; provided that, in the case of a Restricted
Subsidiary that merges into the Company, the Company will not be required to comply with
Section 4.1(a)(v).

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     (e) The Company will not permit any Subsidiary Guarantor to consolidate with or merge with or
into any Person (other than the Company or another Subsidiary Guarantor) and will not permit the
conveyance, transfer or lease of all or substantially all of the assets of any Subsidiary Guarantor
(other than to the Company or another Subsidiary Guarantor) unless:

     (i) if such entity remains a Subsidiary Guarantor, (A) the resulting, surviving or
transferee Person will be a corporation, partnership, trust or limited liability company
organized and existing under the laws of the United States of America, any State of the
United States or the District of Columbia and such Person (if not such Subsidiary Guarantor)
will expressly assume, by supplemental indenture, executed and delivered to the Trustee, all
the obligations of such Subsidiary Guarantor under its Subsidiary Guarantee and this
Indenture, and will expressly assume, by written agreement, all the obligations of such
Subsidiary Guarantor under the Security Documents and will cause such amendments,
supplements or other instruments to be executed, filed, and recorded in such jurisdictions
as may be required by applicable law to preserve and protect the Lien on the Collateral
owned by or transferred to the surviving entity, together with such financing statements or
comparable documents as may be required to perfect any security interests in such Collateral
which may be perfected by the filing of a financing statement or a similar document under
the Uniform Commercial Code or other similar statute or regulation of the relevant states or
jurisdictions; (B) immediately after giving effect to such transaction (and treating any
Indebtedness that becomes an obligation of the resulting, surviving or transferee Person or
any Restricted Subsidiary as a result of such transaction as having been Incurred by such
Person or such Restricted Subsidiary at the time of such transaction), no Default or Event
of Default will have occurred and be continuing; and (C) the Company will have delivered to
the Trustee an Officers’ Certificate and an Opinion of Counsel, each stating that such
consolidation, merger or transfer and such supplemental indenture (if any) comply with this
Indenture; or

     (ii) the transaction is made in compliance with Section 3.5 and Section
3.9.

ARTICLE V

REDEMPTION OF SECURITIES

     SECTION 5.1. Redemption. The Notes may be redeemed, as a whole or from time to time in part, subject to the
conditions and at the redemption prices specified in Section 5 of the form of Note set forth in
Exhibit A hereto, which are hereby incorporated by reference and made a part of this
Indenture, together with accrued and unpaid interest, if any, to the Redemption Date.

     SECTION 5.2. Applicability of Article. Redemption of Notes at the election of the
Company or otherwise, as permitted or required by any provision of this Indenture, shall be made in
accordance with such provision and this Article.

     SECTION 5.3. Election to Redeem; Notice to Trustee. The election of the Company to
redeem any Notes pursuant to Section 5.1 shall be evidenced by a Board Resolution of the
Company. In case of any redemption at the election of the Company, the Company shall, upon not
later than the earlier of the date that is 45 days prior to the Redemption Date fixed by the

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Company or the date on which notice is given to the Holders (except as provided under Section
5.5 or unless a shorter notice shall be satisfactory to the Trustee), notify the Trustee of
such Redemption Date and of the principal amount of Notes to be redeemed and shall deliver to the
Trustee such documentation and records as shall enable the Trustee to select the Notes to be
redeemed pursuant to Section 5.4. Any such notice may be cancelled at any time prior to
notice of such redemption being mailed to any Holder and shall thereby be void and of no effect.

     SECTION 5.4. Selection by Trustee of Notes to Be Redeemed. If less than all the Notes
are to be redeemed at any time pursuant to an optional redemption, the particular Notes to be
redeemed shall be selected not more than 60 days prior to the Redemption Date by the Trustee, from
the outstanding Notes not previously called for redemption, in compliance with the requirements of
the principal national securities exchange, if any, on which such Notes are listed, or, if such
Notes are not so listed, on a pro rata basis (or, in the case of Notes issued in global form
pursuant to Section 2.1(b), based on such method that most nearly approximates a pro rata selection
as the Trustee shall deem fair and appropriate and in such manner as complies with applicable legal
requirements) and which may provide for the selection for redemption of portions of the principal
of the Notes; provided, however, that no such partial redemption shall reduce the portion of the
principal amount of a Note not redeemed to less than $1,000 and no Notes of $2,000 in original
principal amount or less will be redeemed in part.

     The Trustee shall promptly notify the Company in writing of the Notes selected for redemption
and, in the case of any Notes selected for partial redemption, the method it has chosen for the
selection of Notes and the principal amount thereof to be redeemed.

     For all purposes of this Indenture, unless the context otherwise requires, all provisions
relating to redemption of Notes shall relate, in the case of any Note redeemed or to be redeemed
only in part, to the portion of the principal amount of such Note which has been or is to be
redeemed.

     SECTION 5.5. Notice of Redemption. Notice of redemption shall be given in the manner
provided for under Section 12.2 not less than 30 nor more than 60 days prior to the
Redemption Date, to each Holder of Notes to be redeemed. At the Company’s request, the Trustee
shall give notice of redemption in the Company’s name and at the Company’s expense; provided,
however, that the Company shall deliver to the Trustee, at least 45 days prior to the Redemption
Date, an Officers’ Certificate requesting that the Trustee give such notice at the Company’s
expense and the form of notice that shall include the following items.

     All notices of redemption shall state:

     (a) the Redemption Date,

     (b) the redemption price and the amount of accrued interest to the Redemption Date
payable as provided under Section 5.7, if any,

     (c) if less than all outstanding Notes are to be redeemed, the identification of the
particular Notes (or portion thereof) to be redeemed, as well as the aggregate principal
amount of Notes to be redeemed and the aggregate principal amount of Notes to be outstanding
after such partial redemption,

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     (d) in case any Note is to be redeemed in part only, the notice which relates to such
Note shall state that on and after the Redemption Date, upon surrender of such Note, the
Holder will receive, without charge, a new Notes or Notes of authorized denominations for
the principal amount thereof remaining unredeemed,

     (e) that on the Redemption Date the redemption price (and accrued interest, if any, to
the Redemption Date payable as provided under Section 5.7) will become due and
payable upon each such Note, or the portion thereof, to be redeemed, and, unless the Company
defaults in making the redemption payment, that interest on Notes called for redemption (or
the portion thereof) will cease to accrue on and after said date,

     (f) the place or places where such Notes are to be surrendered for payment of the
redemption price and accrued interest, if any,

     (g) the name and address of the Paying Agent,

     (h) that Notes called for redemption must be surrendered to the Paying Agent to collect
the redemption price,

     (i) the CUSIP, Common Code and ISIN numbers, if applicable, and that no representation
is made as to the accuracy or correctness of the CUSIP, Common Code and ISIN numbers, if
applicable, if any, listed in such notice or printed on the Notes, and

     (j)
the paragraph of Section 5 of the Notes pursuant to which the Notes are to be redeemed.

     SECTION 5.6. Deposit of Redemption Price. Prior to 10:00 a.m., New York City time, on any Redemption Date, the Company shall deposit
with the Trustee or with a Paying Agent (or, if the Company or any of the Company’s Subsidiaries is
acting as its own Paying Agent, segregate and hold in trust as provided under Section 2.4)
an amount of money sufficient to pay the redemption price of, and accrued interest on, all the
Notes which are to be redeemed on that date, other than Notes or portions of Notes called for
redemption that are beneficially owned by the Company and have been delivered by the Company to the
Trustee for cancellation.

     SECTION 5.7. Notes Payable on Redemption Date. Notice of redemption having been given
as aforesaid, the Notes or portions of Notes so to be redeemed shall, on the Redemption Date,
become due and payable at the redemption price therein specified (together with accrued interest,
if any, to the Redemption Date), and on and after such date (unless the Company shall default in
the payment of the redemption price and accrued interest) such Notes shall cease to bear interest
and the only right of the Holders thereof will be to receive payment of the redemption price and,
subject to the next sentence, unpaid interest on such Notes to the Redemption Date. Upon surrender
of any such Note for redemption in accordance with said notice, such Note shall be paid by the
Company at the redemption price, together with accrued interest, if any, to the Redemption Date
(subject to the rights of Holders of record on the relevant record date to receive interest due on
the relevant interest payment date).

     If any Note called for redemption shall not be so paid upon surrender thereof for redemption,
the unpaid principal (and premium, if any) shall, until paid, bear interest from the Redemption
Date at the rate borne by the Notes.

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     SECTION 5.8. Notes Redeemed in Part. Any Note which is to be redeemed only in part
(pursuant to the provisions of this Article) shall be surrendered at the office or agency of the
Company maintained for such purpose pursuant to Section 3.14 (with, if the Company or the
Trustee so require, due endorsement by, or a written instrument of transfer in form satisfactory to
the Company and the Trustee duly executed by the Holder thereof or such Holder’s attorney duly
authorized in writing), and the Company shall execute, and the Trustee shall authenticate and make
available for delivery to the Holder of such Note at the expense of the Company, a new Note or
Notes, of any authorized denomination as requested by such Holder, in an aggregate principal amount
equal to and in exchange for the unredeemed portion of the principal of the Note so surrendered,
provided, that each such new Note will be in a principal amount of $2,000 and integral multiples of
$1,000 in excess thereof.

ARTICLE VI

DEFAULTS AND REMEDIES

     SECTION 6.1. Events of Default. Each of the following is an event of default (each,
an “Event of Default”):

     (i) default for 30 days in any payment when due of interest on any Note;

     (ii) default in the payment of principal of, or premium, if any, on, any Note when due
at its Stated Maturity, upon optional redemption, upon required repurchase, upon declaration
or otherwise;

     (iii) failure by the Company or any Subsidiary Guarantor to comply with its obligations
under Article IV hereof;

     (iv) failure by the Company or any of its Restricted Subsidiaries to comply for 60 days
after notice as provided below with its other agreements contained in this Indenture or the
Security Documents;

     (v) default under any mortgage, indenture or instrument under which there may be issued
or by which there may be secured or evidenced any Indebtedness for money borrowed by the
Company or any of its Restricted Subsidiaries (or the payment of which is guaranteed by the
Company or any of its Restricted Subsidiaries), other than Indebtedness owed to the Company
or a Restricted Subsidiary, whether such Indebtedness or Guarantee now exists, or is created
after the Issue Date, which default:

          (A) is caused by a failure to pay principal of, or interest or premium, if any, on such
Indebtedness prior to the expiration of the grace period provided in such Indebtedness
(“payment default”); or

          (B) results in the acceleration of such Indebtedness prior to its maturity;

and, in each case, the principal amount of any such Indebtedness, together with the
principal amount of any other such Indebtedness under which there has been a payment

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default
or the maturity of which has been so accelerated, aggregates $15.0 million or more;

     (vi) failure by the Company or any Material Subsidiary of the Company to pay final
judgments aggregating in excess of $15.0 million (net of any amounts that a reputable and
creditworthy insurance company has acknowledged liability for in writing), which judgments
are not paid, discharged or stayed for a period of 60 days;

     (vii) a Bankruptcy Law Event of Default with respect to the Company or any Material
Subsidiary;

     (viii) any Subsidiary Guarantee of a Material Subsidiary ceases to be in full force and
effect (except as contemplated by the terms of this Indenture) or is declared null and void
in a judicial proceeding or any Subsidiary Guarantor that is a Material Subsidiary denies or
disaffirms its obligations under this Indenture or its Subsidiary Guarantee; or

     (ix) with respect to any Collateral having a fair market value in excess of $15.0
million, individually or in the aggregate, (A) any security interest under the Security
Documents, at any time, ceases to be in full force and effect for any reason (other than
solely as a result of any action taken or not taken by the Collateral Trustee that was
required to be taken or not taken by the Collateral Trustee pursuant to the Security
Documents) other than in accordance with their terms and the terms of this Indenture and
other than the satisfaction in full of all obligations under this Indenture and discharge of
this Indenture, (B) any security interest created under the Security Documents is declared
invalid or unenforceable in any material respect by a court of competent jurisdiction or (C)
the Company or any Subsidiary Guarantor asserts that any such security interest or Security
Document is invalid or unenforceable prior to the time that the Collateral is to be released
to the Company or the Subsidiary Guarantors, and in the case of any default referred to in
clause (A) or (B) above, such default continues uncured for 30 days after written notice
thereof is given to the Company by the Trustee or holders of at least 25% in principal
amount of the outstanding Notes.

     However, a default under clause (iv) of this Section 6.1 will not constitute an Event
of Default until the Trustee or the holders of 25% in principal amount of the outstanding Notes
notify the Company of such default and the Company does not cure such default within the time
specified in clause (iv) of this paragraph after receipt of such notice.

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

     SECTION 6.2. Acceleration. If an Event of Default (other than an Event of Default
pursuant to clause (vii) of Section 6.1) occurs and is continuing, the Trustee by notice to
the Company, or the Holders of at least 25% in principal amount of the outstanding Notes by notice
to the Company and the Trustee, may, and the Trustee at the request of such Holders shall,

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declare
the principal of, premium, if any, and accrued and unpaid interest, if any, on all the Notes to be
due and payable. Upon such a declaration, such principal, premium and accrued and unpaid interest
will be due and payable immediately.

     In the event of a declaration of acceleration of the Notes because an Event of Default
pursuant to clause (v) of Section 6.1 has occurred and is continuing, the declaration of
acceleration of the Notes shall be automatically annulled if the event of default or payment
default triggering such Event of Default pursuant to clause (v) of Section 6.1 shall be
remedied or cured by the Company or a Restricted Subsidiary or waived by the holders of the
relevant Indebtedness within 30 days after the declaration of acceleration with respect thereto and
if (1) the annulment of the acceleration of the Notes would not conflict with any judgment or
decree of a court of competent jurisdiction, (2) all existing Events of Default, except nonpayment
of principal, premium or interest on the Notes that became due solely because of the acceleration
of the Notes, have been cured or waived. The Company shall pay or deposit, or caused to be paid or
deposited, with the Trustee a sum sufficient to pay all sums paid or advanced by the Trustee
hereunder in connection with any such waiver or past default and the reasonable compensation,
expenses, disbursements and advances of the Trustee, its agents and counsel in connection with any
such waiver or past default.

     If an Event of Default pursuant to clause (vii) of Section 6.1 occurs and is
continuing, the principal of, premium, if any, and accrued and unpaid interest on all the Notes
will become and be immediately due and payable without any declaration or other act on the part of
the Trustee or any Holders.

     The Holders of a majority in principal amount of the outstanding Notes may waive all past
defaults (except with respect to nonpayment of principal, premium or interest) and rescind any such
acceleration with respect to the Notes and its consequences if (1) rescission would not conflict
with any judgment or decree of a court of competent jurisdiction, (2) all existing Events of
Default, other than the nonpayment of the principal of, premium, if any, and interest on the Notes
that have become due solely by such declaration of acceleration, have been cured or waived and (3)
there has been paid or deposited with the Trustee a sum sufficient to pay all amounts, if any, due
to the Trustee and to reimburse the Trustee for any and all fees, expenses and disbursements
advanced by the Trustee, its agents and its counsel incurred in connection with such Event of
Default.

     SECTION 6.3. Other Remedies. If an Event of Default occurs and is continuing, the
Trustee may pursue any available remedy by proceeding at law or in equity to collect the payment of
principal of (or premium, if any) or interest on the Notes or to enforce the performance of any
provision of the Notes or this Indenture.

     The Trustee may maintain a proceeding even if it does not possess any of the Notes or does not
produce any of them in the proceeding. A delay or omission by the Trustee or any Holder in
exercising any right or remedy accruing upon an Event of Default shall not impair the right or
remedy or constitute a waiver of or acquiescence in the Event of Default. No remedy is exclusive
of any other remedy. All available remedies are cumulative.

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     SECTION 6.4. Waiver of Past Defaults. Subject to Section 6.2, the Holders of
a majority in principal amount of the outstanding Notes by notice to the Trustee may (a) waive, by
their consent (including consents obtained in connection with a purchase of, or tender offer or
exchange offer for, Notes), an existing Default or Event of Default and its consequences, except a
Default or Event of Default in the payment of the principal of, or premium, if any, or interest on
a Note, and (b) rescind any such acceleration with respect to the Notes and its consequences if (1)
rescission would not conflict with any judgment or decree of a court of competent jurisdiction and
(2) all existing Events of Default, other than the nonpayment of the principal of, premium, if any,
and interest on the Notes that have become due solely by such declaration of acceleration, have
been cured or waived. When a Default or Event of Default is waived, it is deemed cured, but no
such waiver shall extend to any subsequent or other Default or Event of Default or impair any
consequent right.

     SECTION 6.5. Control by Majority. Subject to Section 6.6 and the terms of the
Collateral Trust Agreement, the Holders of a majority in principal amount of the outstanding Notes
may direct the time, method
and place of conducting any proceeding for any remedy available to the Trustee or the
Collateral Trustee of exercising any trust or power conferred on the Trustee or Collateral Trustee.
The Trustee, however, may refuse to follow any direction that conflicts with law or this
Indenture, the Notes, the Subsidiary Guarantees or the Security Documents, subject to Sections
7.1 and 7.2, that the Trustee determines is unduly prejudicial to the rights of any
other Holder or would involve the Trustee in personal liability. Prior to taking any action under
this Indenture, the Trustee shall be entitled to indemnification satisfactory to it in its sole
discretion against all losses and expenses caused by taking or not taking such action.

     SECTION 6.6. Limitation on Suits. Subject to the provisions of this Indenture
relating to the duties of the Trustee, in case an Event of Default occurs and is continuing, the
Trustee will be under no obligation to exercise any of the rights or powers under this Indenture at
the request or direction of any of the Holders of Notes unless such Holders have offered to the
Trustee reasonable indemnity or security against any loss, liability or expense.

     Except to enforce the right to receive payment of principal of, or premium or interest, if
any, when due, no Holder may pursue any remedy with respect to this Indenture, the Notes, the
Security Documents or the Subsidiary Guarantees unless:

     (a) such Holder has previously given the Trustee notice that an Event of Default is
continuing;

     (b) Holders of at least 25% in aggregate principal amount of the then outstanding Notes have
requested the Trustee to pursue the remedy,

     (c) such Holder or Holders have offered the Trustee reasonable security or indemnity against
any loss, liability or expense;

     (d) the Trustee has not complied with such request within 60 days after the receipt of the
request and the offer of security or indemnity; and

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     (e) the Holders of a majority in aggregate principal amount of the then outstanding Notes have
not given the Trustee a direction that, in the opinion of the Trustee, is inconsistent with such
request within such 60-day period.

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

     SECTION 6.7. Rights of Holders to Receive Payment. Notwithstanding any other
provision of this Indenture (including Section 6.6), the right of any Holder to receive
payment of principal of, premium, if any, or interest on the Notes held by such Holder, on or after
the respective due dates expressed in the Notes, or to bring suit for the enforcement of any such
payment on or after such respective dates, shall not be impaired or affected without the consent of
such Holder.

     SECTION 6.8. Collection Suit by Trustee. If an Event of Default specified in clauses
(i) or (ii) of Section 6.1 occurs and is continuing, the Trustee may recover judgment in
its own name and as trustee of an express trust against the Company for the whole amount then due
and owing (together with interest on any unpaid interest to the extent lawful) and the amounts
provided for under Section 7.7.

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

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

     FIRST:
to the extent required by the Collateral Trust Agreement to be
applied in accordance therewith prior to payment in accordance with
this Indenture, to the Collateral Trustee to be so applied;

     SECOND:
to the Trustee and Collateral Trustee for amounts due under
Section 7.7;

     THIRD: to Holders for amounts due and unpaid on the Notes for principal, premium, if any,
and interest, ratably, without preference or priority of any kind, according to the amounts due and
payable on the Notes for principal and interest, respectively; and

     FOURTH: to the Company, or to the extent the Trustee collects any amount from any Subsidiary
Guarantor pursuant to Article X, to such Subsidiary Guarantor, or to whomever may be
lawfully entitled to receive the same.

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     The Trustee may fix a record date and payment date for any payment to Holders pursuant to this
Section 6.10.

     SECTION 6.11. Undertaking for Costs. In any suit for the enforcement of any right or
remedy under this Indenture or in any suit against the Trustee for any action taken or omitted by
it as Trustee, a court in its discretion may require the filing by any party litigant in the suit
of an undertaking to pay the costs of the suit, and the court in its discretion may assess
reasonable costs, including reasonable
attorneys’ fees and expenses, against any party litigant in the suit, having due regard to the
merits and good faith of the claims or defenses made by the party litigant. This Section
6.11 does not apply to a suit by the Trustee, a suit by a Holder pursuant to Section
6.7 or a suit by Holders of more than 10% in outstanding principal amount of the Notes.

ARTICLE VII

TRUSTEE

     SECTION 7.1. Duties of Trustee.

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

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

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

     (ii) in the absence of bad faith on its part, the Trustee may conclusively rely, as to
the truth of the statements and the correctness of the opinions expressed therein, upon
certificates, opinions or orders furnished to the Trustee and conforming to the requirements
of this Indenture. However, 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 examine such certificates and opinions to determine whether or not they conform to the
requirements of this Indenture (but need not confirm or investigate the accuracy of
mathematical calculations or other facts stated therein).

     (c) The Trustee may not be relieved from liability for its own negligent action, its own
negligent failure to act or its own willful misconduct, except that:

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

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

     (iii) the Trustee shall not be liable with respect to any action it takes or omits to
take in good faith in accordance with a direction received by it pursuant to Section
6.5.

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     (d) The Trustee shall not be liable for interest on any money received by it except as the
Trustee may agree in writing with the Company.

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

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

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

     (h) Unless otherwise specifically provided in this Indenture, any demand, request, direction
or notice from the Company shall be sufficient if signed by an Officer of the Company.

     (i) The Trustee shall be under no obligation to exercise any of the rights or powers vested in
it by this Indenture at the request or direction of any of the Holders unless such Holders shall
have offered to the Trustee indemnity or security reasonably satisfactory to it against the costs,
expenses (including reasonable attorneys’ fees and expenses) and liabilities that might be incurred
by it in compliance with such request or direction.

     SECTION 7.2. Rights of Trustee. Subject to Section 7.1:

     (a) The Trustee may conclusively rely on any document (whether in its original or facsimile
form) reasonably believed by it to be genuine and to have been signed or presented by the proper
person. The Trustee need not investigate any fact or matter stated in the document. The Trustee
shall receive and retain financial reports and statements of the Company as provided herein, but
shall have no duty to review or analyze such reports or statements to determine compliance under
covenants or other obligations of the Company.

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

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

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

     (e) The Trustee may consult with counsel of its selection, and the advice or opinion of
counsel with respect to legal matters relating to this Indenture and the Notes shall be full and
complete authorization and protection from liability in respect of any action taken, omitted or

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suffered by it hereunder in good faith and in accordance with the advice or opinion of such
counsel.

     (f) The Trustee shall not be deemed to have notice of any Default or Event of Default unless a
Trust Officer of the Trustee has actual knowledge thereof or unless written notice of any
event which is in fact such a default is received by the Trustee at the corporate trust office
of the Trustee specified under Section 12.2, and such notice references the Notes and this
Indenture.

     (g) In the event the Trustee receives inconsistent or conflicting requests and indemnity from
two or more groups of Holders of Notes, each representing less than a majority in aggregate
principal amount of the Notes outstanding, pursuant to the provisions of this Indenture, the
Trustee, in its sole discretion, may determine what action, if any, will be taken.

     (h) The rights, privileges, protections, immunities and benefits given to the Trustee,
including its right to be indemnified, are extended to, and shall be enforceable by, the Trustee in
each of its capacities hereunder, and to each agent, custodian and other Person employed to act
hereunder.

     (i) The Trustee shall not be deemed to have knowledge of any fact or matter unless such fact
or matter is known to a Trust Officer of the Trustee.

     (j) Whenever in the administration of this Indenture the Trustee shall deem it desirable that
a matter be proved or established prior to taking, suffering or omitting any action hereunder, the
Trustee (unless other evidence be herein specifically prescribed) may request, and in the absence
of bad faith or willful misconduct on its part, rely upon an Officers’ Certificate and an Opinion
of Counsel.

     (k) The Trustee may request that the Company deliver an Officers’ Certificate setting forth
the names of individuals and/or titles of officers authorized at such time to take specified
actions pursuant to this Indenture, which Officers’ Certificate may be signed by any person
specified as so authorized in any such certificate previously delivered and not superseded.

     (l) In no event shall the Trustee be responsible or liable for special, indirect, or
consequential loss or damage of any kind whatsoever (including, but not limited to, loss of profit)
irrespective of whether the Trustee has been advised of the likelihood of such loss or damage and
regardless of the form of action.

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

     (n) The rights, privileges, protections, immunities and benefits given to the Trustee,
including, without limitation, its right to be indemnified, are extended to, and shall be
enforceable by, the Trustee in each of its capacities hereunder, and to each agent, custodian and
other Person employed by the Trustee to act hereunder.

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     (o) The Trustee may request that the Company or the Guarantor deliver an Officers’ Certificate
setting forth the names of individuals and/or titles of officers authorized at such time to take
specified actions pursuant to this Indenture, which Officers’ Certificate may be signed by any
person authorized to sign an Officers’ Certificate, including any person specified as so authorized
in any such certificate previously delivered and not superseded.

     (p) The permissive rights of the Trustee enumerated herein shall not be construed as duties.

     (q) The Trustee shall at no time have any responsibility or liability for or with respect to
the legality, validity or enforceability of any Collateral or any arrangement or agreement between
the Company and any Person with respect thereto, or the perfection or priority of any security
interest created in any of the Collateral or the maintenance of any such perfection and priority,
or for or with respect to the sufficiency of the Collateral following an Event of Default.

     SECTION 7.3. Individual Rights of Trustee. The Trustee in its individual or any other
capacity may become the owner or pledgee of Notes and may otherwise deal with the Company, the
Subsidiary Guarantors or their Affiliates with the same rights it would have if it were not
Trustee. However, the Trustee must comply with Section 7.10. In addition, the Trustee
shall be permitted to engage in transactions with the Company; provided, however, that if the
Trustee acquires any conflicting interest, the Trustee must (i) eliminate such conflict within 90
days of acquiring such conflicting interest, (ii) apply to the SEC for permission to continue
acting as Trustee or (iii) resign. Any Paying Agent, Registrar, co-registrar or co-paying agent
may do the same with like rights.

     SECTION 7.4. Trustee’s Disclaimer. The Trustee shall not be responsible for and makes
no representation as to the validity or adequacy of this Indenture or the Notes, shall not be
accountable for the Company’s use of the proceeds from the sale of the Notes, shall not be
responsible for the use or application of any money received by any Paying Agent other than the
Trustee or any money paid to the Company pursuant to the terms of this Indenture and shall not be
responsible for any statement of the Company in this Indenture or in any document issued in
connection with the sale of the Notes or in the Notes other than the Trustee’s certificate of
authentication.

     SECTION 7.5. Notice of Defaults. If a Default occurs and is continuing and is known
to the Trustee, the Trustee must mail to each Holder notice of the Default within 90 days after it
occurs. Except in the case of a Default in the payment of principal of, premium, if any, or
interest on any Note, the Trustee may withhold notice if and so long as a committee of Trust
Officers of the Trustee in good faith determines that withholding notice is in the interests of the
Holders.

     SECTION
7.6. [Reserved]

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     SECTION 7.7. Compensation and Indemnity. The Company and each Subsidiary Guarantor,
if any, shall be jointly and severally liable for paying to each of the Trustee and Collateral
Trustee from time to time reasonable compensation for the Trustee’s acceptance of this Indenture
and services hereunder and the Collateral Trustee’s acceptance of the Security Documents and
services thereunder, respectively, as the Company and the Trustee or the Collateral Trustee,
respectively, shall from time to time agree in writing. The Trustee’s compensation shall not be
limited by any law on compensation of a trustee of an express trust. The Company and each
Subsidiary Guarantor, if any, shall be jointly and severally liable for reimbursing the Trustee and
the Collateral Trustee upon request for all reasonable out-of-pocket expenses incurred or made by
each of them, including costs of collection, costs of preparing and reviewing reports, certificates
and other documents, costs of preparation and mailing of notices to Holders and reasonable fees and
expenses of counsel retained by the Trustee or the Collateral Trustee, as applicable, in addition
to the compensation for each agent’s services. Such expenses shall include the reasonable
compensation and expenses, disbursements and advances of the Trustee’s or Collateral Trustee’s (as
applicable) agents, counsel, accountants and experts.

     The Company and each Subsidiary Guarantor (if any), jointly and severally, shall indemnify the
Trustee against any and all loss, liability, damages, claims or expense (including reasonable
attorneys’ fees and expenses) incurred by it without negligence, bad faith or willful misconduct on
its part in connection with the administration of this trust and the performance of its duties
hereunder, including the costs and expenses of enforcing this Indenture (including this Section
7.7) and of defending itself against any claims (whether asserted by any Holder, the Company or
otherwise) or liability in connection with the exercise or performance of any of its powers or
duties hereunder. The Trustee shall notify the Company promptly of any claim for which it may seek
indemnity. Failure by the Trustee to so notify the Company shall not relieve the Company or any
Subsidiary Guarantor of its obligations hereunder, except to the extent that they were prejudiced
by such failure to notify. The Company shall defend the claim and the Trustee shall provide
reasonable cooperation at the Company’s expense in the defense. The Trustee may have separate
counsel and the Company and the Subsidiary Guarantors, if any, shall pay the fees and expenses of
such counsel; provided that the Company shall not be required to pay such fees and expenses if they
assume the Trustee’s defense, and, in the reasonable judgment of responsible officers of the
Trustee, there is no conflict of interest between the Company and the Trustee in connection with
such defense. Notwithstanding the foregoing, the Company and the Subsidiary Guarantors, if any,
need not reimburse any expense or indemnify against any loss, liability or expense which is finally
determined by a court of competent jurisdiction to have been caused by the Trustee’s own willful
misconduct, negligence or bad faith.

     To secure the Company’s and the Subsidiary Guarantors’ payment obligations in this Section
7.7, each of the Trustee and the Collateral Trustee shall have a lien prior to the Notes on all
money or property held or collected by the Trustee or Collateral Trustee other than money or
property held in trust to pay principal of and interest on particular Notes. Each of the Trustee’s
and Collateral Trustee’s rights to receive payment of any amounts due under this Section
7.7 shall not be subordinate to any other liability or Indebtedness of the Company or the
Subsidiary Guarantors (if any).

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     The Company’s and the Subsidiary Guarantors’ payment obligations pursuant to this Section
7.7 shall survive the resignation or removal of the Trustee and the satisfaction and discharge
of this Indenture. When the Trustee or Collateral Trustee incurs expenses after the occurrence of
a Default specified in clause (vii) of Section 6.1 with respect to the Company, the
expenses are intended to constitute expenses of administration under any Bankruptcy Law.

     SECTION 7.8. Replacement of Trustee. The Trustee may resign at any time by so
notifying the Company in writing. The Holders of a majority in principal amount of the Notes may
remove the Trustee by so notifying the removed Trustee in writing and may appoint a successor
Trustee with the Company’s written consent, which consent will not be unreasonably withheld. The
Company shall remove the Trustee if:

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

     (b) the Trustee is adjudged bankrupt or insolvent;

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

     (d) the Trustee otherwise becomes incapable of acting as trustee hereunder.

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

     A successor Trustee shall deliver a written acceptance of its appointment to the retiring
Trustee and to the Company. Thereupon the resignation or removal of the retiring Trustee shall
become effective, and the successor Trustee shall have all the rights, powers and duties of the
Trustee under this Indenture. The successor Trustee shall mail a notice of its succession to
Holders. The retiring Trustee, upon payment of its charges hereunder, shall promptly transfer all
property held by it as Trustee to the successor Trustee, subject to the lien provided for under
Section 7.7.

     If a successor Trustee does not take office within 60 days after the retiring Trustee resigns
or is removed, the retiring Trustee or the Holders of at least 10% in principal amount of the Notes
may petition, at the Company’s expense, any court of competent jurisdiction for the appointment of
a successor Trustee.

     If the Trustee fails to comply with Section 7.10, unless the Trustee’s duty to resign
is stayed, any Holder, who has been a bona fide holder of a Note for at least six months, may
petition any court of competent jurisdiction for the removal of the Trustee and the appointment of
a successor Trustee.

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

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     SECTION 7.9. Successor Trustee by Merger. If the Trustee consolidates with, merges or
converts into, or transfers all or substantially all its corporate trust business or assets to,
another corporation or banking association, the resulting, surviving or transferee corporation
without any further act shall be the successor Trustee.

     In case at the time such successor or successors by merger, conversion or consolidation to the
Trustee shall succeed to the trusts created by this Indenture, any of the Notes shall have been
authenticated but not delivered, any such successor to the Trustee may adopt the certificate of
authentication of any predecessor trustee, and deliver such Notes so authenticated; and in case at
that time any of the Notes shall not have been authenticated, any successor to the Trustee may
authenticate such Notes either in the name of any predecessor hereunder or in the name of the
successor to the Trustee; provided that the right to adopt the certificate of authentication of any
predecessor Trustee or authenticate Notes in the name of any predecessor Trustee shall only apply
to its successor or successors by merger, consolidation or conversion.

     SECTION 7.10. Eligibility; Disqualification. This Indenture shall always have a
Trustee. The Trustee shall have a combined capital and surplus of at least $50 million as set
forth in its most recent published annual report of condition.

     SECTION 7.11. [Reserved].

     SECTION 7.12. Trustee’s Application for Instruction from the Company. Any application
by the Trustee for written instructions from the Company may, at the option of the Trustee, set
forth in writing any action proposed 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 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.

     SECTION 7.13. Paying Agents. The Company shall cause each Paying Agent other than the
Trustee to execute and deliver to it and the Trustee an instrument in which such agent shall agree
with the Trustee, subject to the provisions of this Section 7.13:

     (a) that it will hold all sums held by it as agent for the payment of principal of, or
premium, if any, or interest on, the Notes (whether such sums have been paid to it by the Company
or by any obligor on the Notes) in trust for the benefit of Holders of the Notes or the Trustee;

     (b) that it will at any time during the continuance of any Event of Default, upon written
request from the Trustee, deliver to the Trustee all sums so held in trust by it together with a
full accounting thereof; and

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     (c) that it will give the Trustee written notice within three Business Days of any failure of
the Company (or by any obligor on the Notes) in the payment of any installment of the principal of,
premium, if any, or interest on, the Notes when the same shall be due and payable.

ARTICLE VIII

DISCHARGE OF INDENTURE; DEFEASANCE

     SECTION 8.1. Discharge of Liability on Notes; Defeasance.

     (a) This Indenture will be discharged and will cease to be of further effect as to all Notes
issued thereunder, when:

     (i) either:

          (A) all Notes that have been authenticated and delivered, except lost, stolen or
destroyed Notes that have been replaced or paid, and all Notes for whose payment money has
been deposited in trust and thereafter repaid to the Company, have been delivered to the
Trustee for cancellation; or

          (B) all Notes that have not been delivered to the Trustee for cancellation, (1) have
become due and payable by reason of the mailing of a notice of redemption pursuant to
Article V or otherwise or (2) will become due and payable within one year and the
Company or any Subsidiary Guarantor has irrevocably deposited or caused to be deposited with
the Trustee as trust funds in trust solely for the benefit of the Holders, cash in U.S.
dollars, non-callable Government Securities, or a combination of cash in U.S. dollars and
non-callable Government Securities, in amounts as will be sufficient without consideration
of any reinvestment of interest, to pay and discharge the entire Indebtedness on the Notes
not delivered to the Trustee for cancellation for principal and premium, if any, and accrued
interest to the date of maturity or redemption;

     (ii) no Bankruptcy Law Event of Default or other Default or Event of Default that would
cause the repayment of the Notes or the deposit of funds therefor as provided in Section
8.1(a)(i)(B) to be a fraudulent conveyance has occurred and is continuing on the date of
the deposit or will occur as a result of such deposit (other than a Default or Event of
Default resulting from the borrowing of funds to be applied to such deposit);

     (iii) the Company or any Subsidiary Guarantor has paid or caused to be paid all sums
then payable by it under this Indenture; and

     (iv) the Company has delivered irrevocable instructions to the Trustee under this
Indenture to apply the deposited money toward the payment of the Notes at maturity or on the
redemption date, as the case may be.

     The Company must deliver an Officers’ Certificate and an Opinion of Counsel to the Trustee
stating that all conditions precedent to satisfaction and discharge have been satisfied.

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     (b) The Company may, at its option, at any time, elect to have either paragraph (i) or (ii) of
this Section 8.1(b) be applied to all outstanding Notes upon compliance with the conditions set
forth in Section 8.2.

     (i) Upon the Company’s exercise under Section 8.1 hereof of the option
applicable to this Section 8.1(b)(i), the Company shall, subject to the satisfaction
of the conditions set forth in Section 8.2, be deemed to have been discharged from
its obligations with respect to all outstanding Notes on the date the conditions set forth
below are satisfied (hereinafter, “Legal Defeasance”). For this purpose, Legal
Defeasance means that (x) the Company shall be deemed to have paid and discharged the entire
Debt represented by the outstanding Notes, which shall thereafter be deemed to be
“outstanding” only for the purposes of Section 8.3 hereof and the other Sections of
this Indenture referred to in (A) and (B) of this paragraph below, and to have satisfied all
its other obligations under such Notes, this Indenture, and the Security Documents and (y)
each Subsidiary Guarantor shall be deemed to have satisfied its obligations under
Article X and XI and any Security Documents to which it is a party (and the
Trustee and Collateral Trustee, on demand of and at the expense of the Company, shall
execute proper instruments acknowledging the same), except for the following provisions
which shall survive until otherwise terminated or discharged hereunder: (A) the rights of
Holders to receive solely from the trust fund pursuant to Section 8.2 hereof, and as
more fully set forth in such Section, payments in respect of the principal of and interest,
if any, on such Notes when such payments are due, (B) the Company’s obligations with respect
to such Notes under Sections 2.2, 2.3, 2.4, 2.5,
2.6, 2.9, 2.10, 2.11, 2.12, 2.14,
2.15 and 3.14 hereof, (C) the rights, powers, trusts, duties and immunities
of the Trustee hereunder and the Company’s and the Subsidiary Guarantor’s obligations in
connection therewith and (D) this Article VIII.

     (ii) Upon the Company’s exercise under Section 8.1 hereof of the option
applicable to this Section 8.1(b)(ii), (x) the Company shall, subject to the
satisfaction of the conditions set forth in Section 8.2 hereof, be released from its
obligations under the covenants contained in Sections 3.2, 3.3, 3.4,
3.5, 3.6, 3.7, 3.8, 3.9, 3.10, 3.11,
3.12, 3.13, 3.17 and 4.1(a)(iii), Article XI and all
the covenants in the Security Documents to which the Company is a party and (y) each
Subsidiary Guarantor shall, subject to the satisfaction of the conditions set forth in
Section 8.2 hereof, be released from its covenants in Article X and XI
and any Security Documents to which it is a party, each with respect to the outstanding
Notes on and after the date the conditions set forth in Section 8.2 are satisfied
(hereinafter, “Covenant Defeasance”), and the Notes shall thereafter be deemed not
“outstanding” for the purposes of any direction, waiver, consent or declaration or act of
Holders (and the consequences of any thereof) in connection with such covenants, but shall
continue to be deemed “outstanding” for all other purposes hereunder (it being understood
that such Notes shall not be deemed outstanding for accounting purposes). For this purpose,
Covenant Defeasance means that, with respect to the outstanding Notes, the Company and each
Subsidiary Guarantor may omit to comply with and shall have no liability in respect of any
term, condition or limitation set forth in
any such covenant, whether directly or indirectly, by reason of any reference elsewhere
herein to any such covenant or by reason of any reference in any such covenant to any other
provision herein or in any other document and such omission to comply shall not

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constitute a
Default or an Event of Default under Section 6.1 hereof, but, except as specified
above, the remainder of this Indenture and such Note shall be unaffected thereby.

     If the Company exercises its legal defeasance option, payment of the Notes may not be
accelerated because of an Event of Default and the Subsidiary Guarantees in effect at such time
shall terminate. If the Company exercises its covenant defeasance option, payment of the Notes may
not be accelerated because of an Event of Default specified under Section 6.1(iii) (only
with respect to Section 4.1(a)(iii)), 6.1(iv) (only with respect to Sections
3.2, 3.3, 3.4, 3.5, 3.6, 3.7, 3.8, 3.9,
3.10, 3.11, 3.12 and 3.13), 6.1(v) (with respect only to
Significant Subsidiaries), 6.1(vi) or 6.1(ix).

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

     (c) Notwithstanding the provisions of Sections 8.1(a), the Company’s obligations under
Sections 2.3, 2.5, 2.10, 2.12, 3.14, 3.15 (solely
as to the corporate or other existence of the Company), 6.7, 7.7, and 7.8
and in this Article VIII shall survive until the Notes have been paid in full (or funds
sufficient therefor have been deposited as provided in Section 8.1(a)(i)(B) hereof). After
the Notes have been paid in full (or funds sufficient therefor have been deposited as provided in
Section 8.1(a)(i)(B) hereof), the Company’s obligations under Sections 7.7,
8.5 and 8.6 shall survive such satisfaction and discharge.

     (d) Notwithstanding the provisions of Sections 8.1(b), the Company’s obligations under
Sections 2.2, 2.3, 2.4, 2.5, 2.6, 2.9,
2.10, 2.11, 2.12, 3.1, 3.14, 3.15, 3.16,
3.18, 3.19, 3.20, 6.7, 7.7 and 7.8 and in this
Article VIII shall survive until the Notes have been paid in full. After the Notes have
been paid in full, the Company’s obligations under Sections 7.7, 8.5 and
8.6 shall survive such defeasance.

     SECTION 8.2. Conditions to Defeasance. The Company may exercise its legal defeasance
option or its covenant defeasance option only if:

     (a) the Company irrevocably deposits in trust with the Trustee, for the benefit of the
Holders, cash in U.S. dollars, non-callable Government Securities, or a combination of cash in U.S.
dollars and non-callable Government Securities, in amounts as will be sufficient, in the opinion of
a nationally recognized firm of independent public accountants, to pay the principal of, and
interest and premium (and additional interest, if any) on, the outstanding Notes on the Stated
Maturity of the Notes or on the applicable redemption date, as the case may be, and the Company
must specify whether the Notes are being defeased to maturity or to a particular redemption date;

     (b) in the case of legal defeasance, the Company must deliver to the Trustee an Opinion of
Counsel reasonably acceptable to the Trustee confirming that:

     (i) the Company has received from, or there has been published by, the Internal Revenue
Service, a ruling; or

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     (ii) since the Issue Date, there has been a change in the applicable federal income tax
law,

          in either case to the effect that, and based thereon such Opinion of Counsel will confirm
that, the Holders will not recognize income, gain or loss for federal income tax purposes as a
result of such legal defeasance and will be subject to federal income tax on the same amounts, in
the same manner and at the same times as would have been the case if such legal defeasance had not
occurred;

          (c) in the case of covenant defeasance, the Company must deliver to the Trustee an Opinion of
Counsel reasonably acceptable to the Trustee confirming that the Holders will not recognize income,
gain or loss for federal income tax purposes as a result of such covenant defeasance and will be
subject to federal income tax on the same amounts, in the same manner and at the same times as
would have been the case if such covenant defeasance had not occurred;

          (d) no Default or Event of Default will have occurred and be continuing on the date of such
deposit under this Indenture (other than a Default or Even of Default resulting from the borrowing
of funds to be applied to such deposit) and the deposit will not result in a breach or violation
of, or constitute a default under, any other instrument to which the Company or any Subsidiary
Guarantor is a party or by which the Company or any Subsidiary Guarantor is bound or insofar as
Events of Default from bankruptcy or insolvency events are concerned, at any time in the period
ending on the 91st day after the date of deposit;

          (e) such legal defeasance or covenant defeasance will not result in a breach or violation of,
or constitute a default under, any material agreement or instrument (other than this Indenture and
the instruments governing any other Indebtedness being defeased, discharged or replaced) to which
the Company or any Restricted Subsidiary is a party or by which the Company or any Restricted
Subsidiary is bound;

          (f) the Company must deliver to the Trustee an Officers’ Certificate stating that the deposit
was not made by the Company with the intent of preferring the Holders being defeased over the other
creditors of the Company with the intent of defeating, hindering, delaying or defrauding creditors
of the Company or others; and

          (g) the Company must deliver to the Trustee an Officers’ Certificate and an Opinion of
Counsel, each stating that all conditions precedent relating to the legal defeasance or the
covenant defeasance have been complied with.

The Collateral will be released from the Liens securing the Notes pursuant to Section 11.8(b) upon
a legal defeasance or covenant defeasance in accordance with the provisions described above.

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          SECTION 8.3. Application of Trust Money. The Trustee shall hold in trust all money or
U.S. Government Obligations (including proceeds thereof) deposited with it pursuant to this
Article VIII. It shall apply the deposited money and the money from U.S. Government
Obligations through the Paying Agent and in accordance with this Indenture and the Notes to the
Holders of the Notes of all sums due in respect of the payment of principal of, premium, if any,
and accrued interest on the Notes.

          SECTION 8.4. Repayment to the Company. The Trustee and the Paying Agent shall
promptly turn over to the Company upon request any excess money, U.S. Government Obligations or
securities held by them upon payment of all the obligations under this Indenture.

          Subject to any applicable abandoned property law, the Trustee and the Paying Agent shall pay
to the Company upon request any money held by them for the payment of principal of or premium, if
any, or interest on the Notes that remains unclaimed by the Holders thereof for two years, and,
thereafter, Holders entitled to the money must look to the Company for payment as unsecured general
creditors.

          SECTION 8.5. Indemnity for U.S. Government Obligations. The Company shall pay and
shall indemnify the Trustee against any tax, fee or other charge imposed on or assessed against
deposited U.S. Government Obligations or the principal and interest received on such U.S.
Government Obligations other than any such tax, fee or other charge that is for the account of the
Holder of the Notes.

          SECTION 8.6. Reinstatement. If the Trustee or Paying Agent is unable to apply any
money or U.S. Government Obligations in accordance with this Article VIII by reason of any
legal proceeding or by reason of any order or judgment of any court or governmental authority
enjoining, restraining or otherwise prohibiting such application, the obligations of the Company
and each Subsidiary Guarantor, if any, under this Indenture and the Notes shall be revived and
reinstated as though no deposit had occurred pursuant to this Article VIII until such time
as the Trustee or Paying Agent is permitted to apply all such money or U.S. Government Obligations
in accordance with this Article VIII; provided, however, that, if the Company or the
Subsidiary Guarantors have made any payment of principal, premium, if any, interest on or principal
of any Notes because of the reinstatement of its obligations, the Company or Subsidiary Guarantors,
as the case may be, shall be subrogated to the rights of the Holders of such Notes to receive such
payment from the money or U.S. Government Obligations held by the Trustee or Paying Agent.

          The Trustee’s rights under Section 8.5 shall survive termination of this Indenture.

ARTICLE IX

AMENDMENTS

          SECTION 9.1. Without Consent of Holders. The Company, the Subsidiary Guarantors and
the Trustee may amend or supplement this Indenture, the Notes, the Subsidiary Guarantees or the
Security Documents without the consent of any Holder to:

          (a) cure any ambiguity, omission, defect or inconsistency;

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

          (c) provide for the assumption of the Company’s or a Subsidiary Guarantor’s obligations to
holders of Notes and Subsidiary Guarantees under this Indenture, the Notes, the Subsidiary
Guarantees and the Security Documents in the case of a merger or consolidation or sale of all or
substantially all of the Company’s or such Subsidiary Guarantor’s assets, as applicable;

          (d) make any change that would provide any additional rights or benefits to the holders of
Notes or that does not adversely affect the legal rights of any such holder under this Indenture,
the Notes, the Subsidiary Guarantees or the Security Documents;

          (e) provide for the issuance of Additional Notes in accordance with the provisions set forth
in this Indenture;

          (f) evidence and provide for the acceptance of an appointment of a successor Trustee; provided
that the successor Trustee is otherwise qualified and eligible to act as such under the terms of
this Indenture;

          (g) conform the text of this Indenture, the Notes, the Subsidiary Guarantees or the Security
Documents to any provision of the “Description of Notes” section of the Offering Circular to the
extent that such provision in the Description of Notes was intended to be a verbatim recitation of
a provision of this Indenture, the Notes, the Subsidiary Guarantees or the Security Documents,
which intent may be evidenced by an Officers’ Certificate to that effect;

          (h) release a Subsidiary Guarantor from its obligations under its Subsidiary Guarantee, the
Notes or this Indenture in accordance with the applicable provisions of this Indenture;

          (i) add Subsidiary Guarantees with respect to the Notes;

          (j) add additional Collateral to secure the Notes;

          (k) release Liens in favor of the Collateral Trustee in the Collateral as provided under
Section 11.8 and the Security Documents;

          (l) comply with requirements of the SEC in order to effect the qualification of this Indenture
under the Trust Indenture Act of 1939, as amended (and to maintain such qualification if effected);

          (m) comply with the rules of any applicable securities depositary; or

          (n) provide for the accession or succession of any parties to the Security Documents (and
other amendments that are administrative or ministerial in nature) in connection with an amendment,
renewal, extension, substitution, refinancing, restructuring, replacement,

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supplementing or other
modification from time to time of any agreement or action that is not prohibited by this Indenture.

          In addition, without the consent of the holders of Notes, the Company may, and the Collateral
Trustee and the Trustee will be authorized to, amend the Security Documents to add additional
secured parties to the extent Shared Liens securing Shared Lien Obligations held by such parties
are permitted under this Indenture.

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

          SECTION 9.2. With Consent of Holders. Except as provided in Section 9.1 and
this Section 9.2, this Indenture, the Notes, the Subsidiary Guarantees or the Security
Documents (subject to the requirements of the Collateral Trust Agreement) may be amended or
supplemented with the consent of the holders of at least a majority in aggregate principal amount
of the Notes then outstanding (including, without limitation, consents obtained in connection with
a purchase of, or tender offer or exchange offer for, Notes), and any existing Default or Event of
Default or compliance with any provision of this Indenture or the Notes or the Subsidiary
Guarantees may be waived with the consent of the Holders of a majority in aggregate principal
amount of the then outstanding Notes voting as a single class (including, without limitation,
consents obtained in connection with a purchase of, or tender offer or exchange offer for, Notes).

          Without the consent of each Holder affected, an amendment, supplement or waiver may not (with
respect to any Notes held by a non-consenting Holder):

          (a) reduce the principal amount of Notes whose Holders must consent to an amendment,
supplement or waiver;

          (b) reduce the principal of (or the premium on) or change the Stated Maturity of any Note or
alter the provisions with respect to the redemption of the Notes;

          (c) reduce the rate of or change the time for payment of interest on any Note;

          (d) waive a Default or Event of Default in the payment of principal of, or interest or
premium, if any, on, the Notes (except a rescission of acceleration of the Notes by the holders of
at least a majority in aggregate principal amount of the then outstanding Notes and a waiver of the
payment default that resulted from such acceleration);

          (e) make any Note payable in currency other than that stated in the Notes;

          (f) make any change in the provisions of this Indenture relating to waivers of past Defaults
or the rights of holders of Notes to receive payments of principal of, or interest or premium, if
any, on, the Notes or to institute suit for the enforcement of any payment on or with respect to
such Holder’s Notes;

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          (g) waive a redemption payment with respect to any Note;

          (h) release any Subsidiary Guarantor from any of its obligations under its Subsidiary
Guarantee or this Indenture, except in accordance with the terms of this Indenture; or

          (i) make any change in the preceding amendment and waiver provisions.

          In addition, any amendment to, or waiver of, the provisions of this Indenture or any Security
Document that has the effect of releasing all or substantially all of the Collateral from the Liens
securing the Notes will require the consent of holders of at least 75% in aggregate principal
amount of then outstanding Notes.

          It shall not be necessary for the consent of the Holders under this Section 9.2 to
approve the particular form of any proposed amendment, supplement or waiver, but it shall be
sufficient if such consent approves the substance thereof. A consent to any amendment, supplement
or waiver under this Indenture by any Holder of the Notes given in connection with a purchase,
tender or exchange of such Holder’s Notes will not be rendered invalid by such purchase, tender or
exchange.

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

          SECTION 9.3. [Reserved].

          SECTION 9.4. Revocation and Effect of Consents and Waivers. A consent to an
amendment, supplement or a waiver by a Holder of a Note shall bind the Holder and every subsequent
Holder of that Note or portion of the Note that evidences the same debt as the consenting Holder’s
Note, even if notation of the consent or waiver is not made on the Note. Any such Holder or
subsequent Holder may revoke the consent or waiver as to such Holder’s Note or portion of the Note
if the Trustee receives the notice of revocation before the date the amendment, supplement or
waiver becomes effective or otherwise in
accordance with any related solicitation documents. After an amendment, supplement or waiver
becomes effective, it shall bind every Holder unless it makes a change described in any of clauses
(a) through (i) of Section 9.2, in which case the amendment, supplement, waiver or other
action shall bind each Holder who has consented to it and every subsequent Holder that evidences
the same debt as the consenting Holder’s Notes. An amendment, supplement or waiver shall become
effective upon receipt by the Trustee of the requisite number of written consents under Section
9.1 or Section 9.2 as applicable.

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

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such Persons continue to be Holders after such record date. No such consent shall become valid or
effective more than 120 days after such record date.

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

          SECTION 9.6. Trustee to Sign Amendments. The Trustee shall sign any amendment,
supplement or waiver authorized pursuant to this Article IX if the amendment, supplement or
waiver does not adversely affect the rights, duties, liabilities or immunities of the Trustee. If
it does, the Trustee may but need not sign it. In signing such amendment, supplement or waiver the
Trustee shall be entitled to receive indemnity reasonably satisfactory to it and shall be provided
with, and (subject to Sections 7.1 and 7.2) shall be fully protected in relying
upon an Officers’ Certificate and an Opinion of Counsel each stating that such amendment,
supplement or waiver is authorized or permitted by this Indenture and that such amendment,
supplement or waiver is the legal, valid and binding obligation of the Company and any Subsidiary
Guarantors, enforceable against them in accordance with its terms, subject to customary exceptions,
and complies with the provisions hereof (including Section 9.3).

ARTICLE X

SUBSIDIARY GUARANTEES

          SECTION 10.1. Subsidiary Guarantees. Each Subsidiary Guarantor hereby fully,
unconditionally and irrevocably guarantees, as primary obligor and not merely as surety, jointly
and severally with each other
Subsidiary Guarantor, to each Holder of the Notes and the Trustee the full and punctual
payment when due, whether at maturity, by acceleration, by redemption or otherwise, of the
principal of, premium, if any, and interest on the Notes and all other monetary obligations of the
Company under this Indenture (including interest accruing after the filing of any petition in
bankruptcy, or the commencement of any insolvency, reorganization or like proceeding, relating to
the Company or any Subsidiary Guarantor whether or not a claim for post-filing or post-petition
interest is allowed in such proceeding) (all the foregoing being hereinafter collectively called
the “Guarantor Obligations”). Each Subsidiary Guarantor further agrees (to the extent
permitted by law) that the Guarantor Obligations may be extended or renewed, in whole or in part,
without notice or further assent from it, and that it will remain bound under this Article
X notwithstanding any extension or renewal of any Guarantor Obligation.

          Each Subsidiary Guarantor waives presentation to, demand of payment from and protest to the
Company of any of the Guarantor Obligations and also waives notice of protest for nonpayment. Each
Subsidiary Guarantor waives (to the extent permitted by law) notice of any default under the Notes
or the Guarantor Obligations.

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          Each Subsidiary Guarantor further agrees that its Subsidiary Guarantee herein constitutes a
Guarantee of payment when due (and not a Guarantee of collection) and waives any right to require
that any resort be had by any Holder to any security held for payment of the Guarantor Obligations.

          Except as set forth under Section 10.2, the obligations of each Subsidiary Guarantor
hereunder shall not be subject to any reduction, limitation, impairment or termination for any
reason (other than payment of the Guarantor Obligations in full), including any claim of waiver,
release, surrender, alteration or compromise, and shall not be subject to any defense of setoff,
counterclaim, recoupment or termination whatsoever or by reason of the invalidity, illegality or
unenforceability of the Guarantor Obligations or otherwise. Without limiting the generality of the
foregoing, the Guarantor Obligations of each Subsidiary Guarantor herein shall not be discharged or
impaired or otherwise affected by (a) the failure of any Holder to assert any claim or demand or to
enforce any right or remedy against the Company or any other person under this Indenture, the
Notes, the Security Documents or any other agreement or otherwise; (b) any extension or renewal of
any thereof; (c) any rescission, waiver, amendment or modification of any of the terms or
provisions of this Indenture, the Notes, the Security Documents or any other agreement; (d) the
release of any security held by any Holder or the Trustee for the Guarantor Obligations or any of
them; (e) the failure of any Holder to exercise any right or remedy against any other Subsidiary
Guarantor, (f) any change in the ownership of the Company; (g) by any default, failure or delay,
willful or otherwise, in the performance of the Guarantor Obligations, or (h) by any other act or
thing or omission or delay to do any other act or thing which may or might in any manner or to any
extent vary the risk of any Subsidiary Guarantor or would otherwise operate as a discharge of such
Subsidiary Guarantor as a matter of law or equity.

          Subject to the provisions of Section 3.13, each Subsidiary Guarantor agrees that its
Subsidiary Guarantee herein shall remain in full force and effect until payment in full of all the
Guarantor Obligations or such Subsidiary Guarantor is released from its Subsidiary Guarantee in
compliance with Section 10.2. Each Subsidiary Guarantor further agrees that its Subsidiary
Guarantee herein shall continue to be effective or be reinstated, as the case may be, if at any
time payment, or any part thereof, of principal of, premium, if any, or interest on any of the
Guarantor Obligations is rescinded or must otherwise be restored by any Holder upon the bankruptcy
or reorganization of the Company or otherwise.

          In furtherance of the foregoing and not in limitation of any other right which any Holder has
at law or in equity against any Subsidiary Guarantor by virtue hereof, upon the failure of the
Company to pay any of the Guarantor Obligations when and as the same shall become due, whether at
maturity, by acceleration, by redemption or otherwise, each Subsidiary Guarantor hereby promises to
and will, upon receipt of written demand by the Trustee, forthwith pay, or cause to be paid, in
cash, to the Holders an amount equal to the sum of (i) the unpaid amount of such Guarantor
Obligations then due and owing and (ii) accrued and unpaid interest on such Guarantor Obligations
then due and owing (but only to the extent not prohibited by law) (including interest accruing
after the filing of any petition in bankruptcy or the commencement of any insolvency,
reorganization or like proceeding relating to the Company or any Subsidiary Guarantor whether or
not a claim for post-filing or post-petition interest is allowed in such proceeding).

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          Each Subsidiary Guarantor further agrees that, as between such Subsidiary Guarantor, on the
one hand, and the Holders, on the other hand, (x) the maturity of the Guarantor Obligations
guaranteed hereby may be accelerated as provided in this Indenture for the purposes of its
Subsidiary Guarantee herein, notwithstanding any stay, injunction or other prohibition preventing
such acceleration in respect of the Guarantor Obligations guaranteed hereby and (y) in the event of
any such declaration of acceleration of such Guarantor Obligations, such Guarantor Obligations
(whether or not due and payable) shall forthwith become due and payable by the Subsidiary Guarantor
for the purposes of this Subsidiary Guarantee.

          Each Subsidiary Guarantor also agrees to pay any and all costs and expenses (including
reasonable attorneys’ fees and expenses) incurred by the Trustee or the Holders in enforcing any
rights under this Section.

          SECTION 10.2. Limitation on Liability; Termination, Release and Discharge.

          (a) Any term or provision of this Indenture to the contrary notwithstanding, the obligations
of each Subsidiary Guarantor hereunder will be limited to the maximum amount as will, after giving
effect to all other contingent and fixed liabilities of such Subsidiary Guarantor and after giving
effect to any collections from or payments made by or on behalf of any other Subsidiary Guarantor
in respect of the obligations of such other Subsidiary Guarantor under its Subsidiary Guarantee or
pursuant to its contribution obligations under this Indenture, result in the obligations of such
Subsidiary Guarantor under its Subsidiary Guarantee not constituting a fraudulent conveyance or
fraudulent transfer under federal or state law and not otherwise being void or voidable under any
similar laws affecting the rights of creditors generally.

          (b) The Subsidiary Guarantee of a Subsidiary Guarantor will be deemed released in connection
with any sale or other disposition of all or substantially all of the assets of such Subsidiary
Guarantor, by way of merger, consolidation or otherwise, to a Person that is not (either before or
after giving effect to such transaction) the Company or a Restricted Subsidiary
of the Company, if the sale or other disposition does not violate the “Asset Disposition”
provisions of this Indenture;

          (c) The Subsidiary Guarantee of a Subsidiary Guarantor will be deemed released in connection
with any sale or other disposition of Capital Stock of such Subsidiary Guarantor to a Person that
is not (either before or after giving effect to such transaction) the Company or a Restricted
Subsidiary of the Company, if the sale or other disposition does not violate the “Asset
Disposition” provisions of this Indenture and the Subsidiary Guarantor ceases to be a Restricted
Subsidiary of the Company as a result of the sale or other disposition;

          (d) The Subsidiary Guarantee of a Subsidiary Guarantor will be deemed released upon the legal
defeasance and covenant defeasance of this Indenture pursuant to the provisions of Article VIII
hereof or (y) in accordance with Section 3.13 of this Indenture.

          (e) The Subsidiary Guarantee of a Subsidiary Guarantor will be released if the Company
designates any Restricted Subsidiary that is a Subsidiary Guarantor to be an Unrestricted
Subsidiary in accordance with the other applicable provisions of this Indenture.

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          (f) The Subsidiary Guarantee of a Subsidiary Guarantor will be released from all of its
obligations under this Indenture, its Subsidiary Guarantee and the Security Documents to which it
is a party upon satisfaction and discharge of this Indenture pursuant to Section 8.1(a).

          (g) The Trustee shall promptly execute and deliver an appropriate instrument prepared and
delivered to it at the expense of the Company evidencing any such release upon receipt of a request
by the Company accompanied by an Officers’ Certificate certifying as to the compliance with this
Section 10.2.

          SECTION 10.3. Right of Contribution. Each Subsidiary Guarantor hereby agrees that to
the extent that any Subsidiary Guarantor shall have paid more than its proportionate share of any
payment made on the obligations under the Subsidiary Guarantees, such Subsidiary Guarantor shall be
entitled to seek and receive contribution from and against the Company, or any other Subsidiary
Guarantor who has not paid its proportionate share of such payment. The provisions of this
Section 10.3 shall in no respect limit the obligations and liabilities of each Subsidiary
Guarantor to the Trustee and the Holders and each Subsidiary Guarantor shall remain liable to the
Trustee and the Holders for the full amount guaranteed by such Subsidiary Guarantor hereunder.

          SECTION 10.4. No Subrogation. Notwithstanding any payment or payments made by each
Subsidiary Guarantor hereunder, no Subsidiary Guarantor shall be entitled to be subrogated to any
of the rights of the Trustee or any Holder against the Company or any other Subsidiary Guarantor or
any collateral security or guarantee or right of offset held by the Trustee or any Holder for the
payment of the Guarantor Obligations, nor shall any Subsidiary Guarantor seek or be entitled to
seek any contribution or reimbursement from the Company or any other Subsidiary Guarantor in
respect of payments made by such Subsidiary Guarantor hereunder, until all amounts owing to the
Trustee and the Holders by the Company on account of the Guarantor Obligations are paid in
full. If any amount shall be paid to any Subsidiary Guarantor on account of such subrogation
rights at any time when all of the Guarantor Obligations shall not have been paid in full, such
amount shall be held by such Subsidiary Guarantor in trust for the Trustee and the Holders,
segregated from other funds of such Subsidiary Guarantor, and shall, forthwith upon receipt by such
Subsidiary Guarantor, be turned over to the Trustee in the exact form received by such Subsidiary
Guarantor (duly indorsed by such Subsidiary Guarantor to the Trustee, if required), to be applied
against the Guarantor Obligations.

ARTICLE XI

COLLATERAL AND SECURITY

          SECTION 11.1. Collateral.

          (a) The due and punctual payment of the principal of, premium, if any, and interest on the
Notes, the Guarantees thereof when and as the same shall be due and payable, whether on an interest
payment date, at maturity, by acceleration, repurchase, redemption or otherwise, interest on the
overdue principal of and interest (to the extent permitted by law), if any, on the Notes and the
Guarantees thereof and performance of all other obligations under this Indenture, including,
without limitation, the obligations of the Company set forth in Section 7.7 and Section 8.5 herein,
and the Notes and the Guarantees thereof and the Security Documents, shall be

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secured by (i) a senior Lien on all assets of the Company and each Subsidiary Guarantor that constitute Collateral,
subject to Permitted Liens, as and when provided in the Security Documents to which the Company and
the Subsidiary Guarantors, as the case may be, have entered into and will be secured by all of the
Collateral pledged pursuant to the Security Documents hereafter delivered as required or permitted
by this Indenture and the Security Documents. The Company and the Subsidiary Guarantors hereby
agree that the Collateral Trustee shall hold the Collateral in trust for the benefit of itself all
of the Holders, the Trustee and holders of Shared Lien Obligations, in each case pursuant to the
terms of the Security Documents and the Collateral Trustee is hereby authorized to execute and
deliver the Security Documents.

          (b) The Trustee and each Holder, by its acceptance of any Notes and the Guarantees thereof,
consents and agrees to the terms of the Security Documents (including, without limitation, the
provisions providing for foreclosure) as the same may be in effect or may be amended from time to
time in accordance with their terms and authorizes and directs the Collateral Trustee to perform
its obligations and exercise its rights under the Security Documents in accordance therewith.

          (c) The Trustee and each Holder, by accepting the Notes and the Guarantees thereof,
acknowledges that, as more fully set forth in the Security Documents, the Collateral as now or
hereafter constituted shall be held for the benefit of all the Holders, the Trustee, the Collateral
Trustee and holders of Shared Lien Obligations, and that the Lien of this Indenture and the
Security Documents in respect of the Trustee, Collateral Trustee and the Holders and holders of
Shared Lien Obligations is subject to and qualified and limited in all respects by the Security
Documents and actions that may be taken thereunder.

          (d) With respect to any Collateral in existence on the date hereof, each Grantor shall use
commercially reasonable efforts to comply with the requirements of Section 4 of the Security
Agreement on the date hereof and, should any Grantor be unable to comply with the requirements of
Section 4 of the Security Agreement on the date hereof after employing such commercially reasonable
efforts with respect to any Collateral in existence on the date hereof, such Grantor shall use
commercially reasonable efforts with respect to such Collateral to comply with the requirements of
Section 4 of the Security Agreement within ninety (90) days of the date hereof. Each Grantor shall
promptly inform the Collateral Trustee of its acquisition of any Collateral for which any action is
required by Section 4 of the Security Agreement hereof (including, for the avoidance of doubt, the
filing of any applications for, or the issuance or registration of, any Patents, Copyrights or
Trademarks). With respect to any such Collateral hereafter owned or acquired, such Grantor shall
comply with such requirements within 10 (ten) days of Grantor acquiring rights therein; provided
that notwithstanding the 10 (ten) day requirement above, (x) with respect to Collateral owned by
any Grantor that becomes evidenced by an Instrument, Certificated Security or Chattel Paper with a
value in excess of $250,000, such Grantor shall have 30 (thirty) days to deliver such Instrument,
Certificated Security or Chattel Paper to the Collateral Trustee, (y) with respect to any
Intellectual Property for which a Grantor shall (i) file an application for registration with the
United States Patent and Trademark Office or the United States Copyright Office, (ii) file a
statement of use or any amendment to allege use with respect to any “intent to use” trademark
application or (iii) acquire any patent, registered trademark, registered copyright or any
application for the foregoing, such Grantor shall report

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such filing to the Collateral Trustee
within thirty (30) days after the last day of the fiscal quarter in which such filing or
acquisition occurs, and (z) with respect to any after acquired real property acquired by any
Grantor after the Issue Date, such Grantor shall execute and deliver such mortgages, deeds of
trust, security instruments and other documentation required by applicable law to vest in the
Collateral Trustee a perfected security interest in such after acquired real property within ninety
(90) days of the acquisition of such after acquired real property.

          SECTION 11.2. Further Assurances.

          (a) The Company and the Subsidiary Guarantors shall, at their sole expense, do all acts which
may be reasonably necessary to confirm that the Collateral Trustee holds, for the benefit of the
holders of Shared Lien Obligations, duly created, enforceable and perfected first-priority Liens
and security interests in the Collateral (subject to Permitted Liens). This Indenture and the
Security Documents does not require perfection under the laws of any jurisdiction outside the
United States.

          (b) As required by applicable law (other than foreign laws), or upon request of the Collateral
Trustee or any Shared Lien Representative, the Company and the Subsidiary Guarantors shall, at
their sole expense, execute, acknowledge and deliver such documents and instruments and take such
other actions, which may be necessary to assure, perfect, transfer and confirm the Liens, benefits,
property and rights conveyed by the Shared Lien Documents, including with respect to after-acquired
Collateral. If the Company or such Subsidiary Guarantor fails to do so, the Collateral Trustee is
hereby irrevocably authorized and empowered, with full power of substitution, to execute,
acknowledge and deliver such Security Documents, instruments, certificates, notices and other
documents and, subject to the provisions of the Security Documents, take such other actions in the
name, place and stead and at the expense of
the Company or such Subsidiary Guarantor, but the Trustee or the Collateral Trustee will have
no obligation to do so and no liability for any action taken or omitted by it in good faith in
connection therewith.

          (c) The Company and the Subsidiary Guarantors shall: (1) keep their properties adequately
insured at all times by financially sound and reputable insurers; (2) maintain such other
insurance, to such extent and against such risks (and with such deductibles, retentions and
exclusions), including fire and other risks insured against by extended coverage, as is customary
with companies in the same or similar businesses operating in the same or similar locations,
including public liability insurance against claims for personal injury or death or property damage
occurring upon, in, about or in connection with the use of any properties owned, occupied or
controlled by them; (3) maintain such other insurance as may be required by law; (4) maintain title
insurance on all real property Collateral insuring the Lien of the Collateral Trustee on that
property, subject only to Permitted Liens and other exceptions to title approved by the Collateral
Trustee (acting in accordance with the Collateral Trust Agreement); provided that title insurance need only be maintained on any particular parcel of real
property having a fair market value of less than $1.0 million if and to the extent title insurance
is maintained in respect of Shared Liens on that property; and (5) maintain such other insurance as
may be required by the Security Documents.

          SECTION 11.3. After-Acquired Property. Upon the acquisition by the Company or any
Subsidiary Guarantor after the Issue Date of (1) any assets, including, but not limited to, any

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after-acquired real property (other than leased real property) or any equipment or fixtures which
constitute accretions, additions or technological upgrades to the equipment or fixtures that form
part of the Collateral or (2) any Additional Assets out of the Net Cash Proceeds in compliance with
Section 3.5 (other than Excluded Assets) the Company or such
Subsidiary Guarantor shall (in accordance with
Section 11.1 (d), where
applicable) execute and
deliver such mortgages, deeds of trust, security instruments, financing statements, certificates
and opinions of counsel as may be necessary to vest in the Collateral Trustee a perfected security
interest, subject only to Permitted Liens, in such after-acquired property (other than Excluded
Assets) and to have such after-acquired property (other than Excluded Assets) added to the
Collateral, and thereupon all provisions of this Indenture relating to the Collateral shall be
deemed to relate to such after-acquired property to the same extent and with the same force and
effect. In the event the Newport Beach Property has not been transferred in a bona fide sale to a
third party that is not an Affiliate of the Company by January 1, 2011, the Company will have the
same obligations with respect to the Newport Beach Property as if it were after-acquired property.

          SECTION 11.4. Impairment of Security Interest. Neither the Company nor any of its
Restricted Subsidiaries will take or omit to take any action which would materially adversely
affect or impair the Liens in favor of the Collateral Trustee and the Holders of the Shared Lien
Obligations with respect to the Collateral. Neither the Company nor any of the Subsidiary
Guarantors will enter into any agreement that requires the proceeds received from any sale of
Collateral to be applied to repay, redeem, defease or otherwise acquire or retire any Indebtedness
of any Person, other than as permitted by this Indenture, the Notes and the Security Documents. The
Company shall, and shall cause each Subsidiary Guarantor to, at its sole cost and expense, execute
and deliver all such agreements and instruments as necessary, or as the Collateral Trustee or any
Shared Lien Representative shall reasonably request, to more fully or accurately describe the
assets and property intended to be Collateral or the obligations intended to be
secured by the Security Documents.

          SECTION 11.5. Agreements Requiring Application of Proceeds of Collateral.

          (a) Neither the Company nor any of its Restricted Subsidiaries shall enter into any agreement
other than Shared Lien Documents that require the proceeds received from any sale of Collateral to
be applied, in parity with the Notes (and any other Shared Lien Obligations), to repay, redeem,
defease or otherwise acquire or retire any Indebtedness of any Person, other than as permitted by
this Indenture, the Notes, the Subsidiary Guarantees and the Security Documents. Proceeds received
from the destruction or condemnation of the Collateral or from eminent domain proceedings shall be
deposited into the Collateral Account to be invested in Additional Assets. Any remaining proceeds shall be applied in
accordance with Section 3.5.

          SECTION 11.6. Maintenance of Collateral. The Company and the Subsidiary Guarantors
shall maintain the Collateral in good, safe and insurable operating order, condition and repair and
do all other acts as may be reasonably necessary or appropriate to maintain and preserve the value
of the Collateral, except where the failure to maintain such Collateral would not reasonably be
expected to have a material adverse effect on the Collateral, taken as a whole.

          SECTION 11.7. [RESERVED]

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          SECTION 11.8. Release of Liens.

          (a) The Liens of the Collateral Trustee on the Collateral will be released:

     (i) in whole, upon (A) payment in full and discharge of all outstanding Shared Lien
Debt and all other Shared Lien Obligations that are due and payable at the time all of the
Shared Lien Debt is paid in full and discharged (other than Hedging Obligations and Banking
Product Obligations) and (B) termination or expiration of all commitments to extend credit
under all Shared Lien Documents and the cancellation or termination or cash
collateralization (at the lower of (x) 105% of the aggregate undrawn amount and (y) the
percentage of the aggregate undrawn amount required for release of Shared Liens under the
terms of the applicable Shared Lien Documents) of all outstanding letters of credit issued
pursuant to any Shared Lien Documents;

     (ii) as to any Collateral that is sold, transferred or otherwise disposed of by any
Grantor to a Person that is not (either before or after such sale, transfer or disposition)
the Company or a Restricted Subsidiary of the Company in either (A) a foreclosure sale or
other similar transaction approved by an Act of Required Debtholders or (B) a transaction or
other circumstance that is permitted under this Indenture and is permitted by all of the
other Shared Lien Documents, at the time of such sale, transfer or other disposition or to
the extent of the interest sold, transferred or otherwise disposed of; provided that the
Liens of the Collateral Trustee on the Collateral will not be released pursuant to
sub-clause (B) of this clause (ii) if the sale or disposition is subject to Section
4.1.

     (iii) as to less than all or substantially all of the Collateral, if (A) consent to the
release of all Shared Liens on such Collateral has been given by an Act of Required
Debtholders and is permitted by all of the Shared Lien Documents and (B) the Grantors have
delivered an Officers’ Certificate to the Collateral Trustee certifying that all such
necessary consents have been obtained;

     (iv) as to all or substantially all of the Collateral, if (A) consent to the release of
such Collateral has been given by the requisite percentage or number of holders of each
Series of Shared Lien Obligations at the time outstanding as provided for in the applicable
Shared Lien Documents and (B) the Grantors have delivered an Officers’ Certificate to the
Collateral Trustee certifying that all such necessary consents have been obtained; and

     (v) as to Inventory (and Related Inventory Rights), automatically on the date the
Company and/or one or more Subsidiary Guarantors enter into any credit facility that is
secured by collateral that includes Inventory (among other collateral that may secure such
credit facility, if any) providing for a commitment to extend Revolving Credit Debt in an
aggregate principal amount of at least $5.0 million, to the extent such facility is
permitted under each applicable Shared Lien Document.

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In addition, in the case of a Subsidiary Guarantor that is released from its obligations under its
Subsidiary Guarantee in accordance with this Indenture, all Liens on the assets and property of
such Subsidiary Guarantor will be released.

          (b) In addition to a release pursuant to clause (a) above, the Liens of the Collateral Trustee
on the Collateral will no longer secure the Notes outstanding under this Indenture, any Subsidiary
Guarantor’s obligations under the Subsidiary Guarantees or any other obligations under this
Indenture, and the right of the holders of the Notes to the benefits and proceeds of the Liens of
the Collateral Trustee on the Collateral will terminate and be discharged:

	 	(i)	 	upon satisfaction and discharge of this Indenture pursuant to Section
8.1;
	 
	 	(ii)	 	upon a legal defeasance or covenant defeasance of the Notes pursuant to
Section 8.2;
	 
	 	(iii)	 	upon payment in full and discharge of all Notes outstanding under this
Indenture and all obligations that are outstanding, due and payable under this
Indenture at the time the Notes are paid in full and discharged; or
	 
	 	(iv)	 	in whole or in part, with the consent of the holders of the requisite
percentage of Notes pursuant to Article IX.

          SECTION 11.9. Authorization of Actions to be Taken by the Collateral Trustee Under the
Security Documents.

          (a) Subject to the provisions of the Security Documents, the Collateral Trustee may, in its
sole discretion and without the consent of the Holders, on behalf of the Holders, take all actions
it deems necessary or appropriate in order to (1) enforce any of its rights or any of the
rights of the Holders under the Security Documents and (2) collect and receive any and all
amounts payable in respect of the Collateral in respect of the obligations of the Company and the
Subsidiary Guarantors hereunder and thereunder. Subject to the provisions of the Security
Documents, the Collateral Trustee shall have the power to institute and to maintain such suits and
proceedings as it may deem expedient to prevent any impairment of the Collateral by any acts that
may be unlawful or in violation of the Security Documents or this Indenture, and such suits and
proceedings as the Collateral Trustee may deem expedient to preserve or protect its interest and
the interests of the Holders in the Collateral (including power to institute and maintain suits or
proceedings to restrain the enforcement of or compliance with any legislative or other governmental
enactment, rule or order that may be unconstitutional or otherwise invalid if the enforcement of,
or compliance with, such enactment, rule or order would impair the security interest hereunder or
be prejudicial to the interests of the Holders or the Trustee).

          (b) The Trustee or the Collateral Trustee shall not be responsible for the existence,
genuineness or value of any of the Collateral or for the validity, perfection, priority or
enforceability of the Liens in any of the Collateral, whether impaired by operation of law or by
reason of any action or omission to act on its part hereunder (except (x) to the extent such action
or omission constitutes negligence, bad faith or willful misconduct on the part of the Trustee or
the Collateral Trustee, or (y) with respect to the Collateral Trustee, a violation of any standard
of care required of a secured party under Article 9 of the Uniform Commercial Code), for the

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validity or sufficiency of the Collateral or any agreement or assignment contained therein, for the
validity of the title of the Company to the Collateral, for insuring the Collateral or for the
payment of taxes, charges, assessments or Liens upon the Collateral or otherwise as to the
maintenance of the Collateral. The Trustee or the Collateral Trustee shall have no responsibility
for recording, filing, re-recording or refiling any financing statement, continuation statement,
document, instrument or other notice in any public office at any time or times or to otherwise take
any action to perfect or maintain the perfection of any security interest granted to it under the
Security Documents or otherwise.

          (c) Where any provision of this Indenture requires that additional property or assets be added
to the Collateral, the Company and each Subsidiary Guarantor shall deliver to the Collateral
Trustee such Mortgages, Security Documents and financing statements, if any, as are necessary to
perfect the Collateral Trustee’s security interest in such Collateral.

          (d) The Trustee or the Collateral Trustee, in giving any consent or approval with respect to
the Collateral under this Indenture or the Security Documents, shall be entitled to receive, as a
condition to such consent or approval, to the extent required in the Security Documents, an
Officers’ Certificate and an Opinion of Counsel to the effect that the action or omission for which
consent or approval is to be given does not violate the provisions of this Indenture and the
Security Documents, and the Trustee or the Collateral Trustee shall be fully protected in giving
such consent or approval on the basis of such Officers’ Certificate and Opinion of Counsel.

          SECTION 11.10. Collateral Account.

          (a) The Trustee is authorized to receive any funds for the benefit of the Holders distributed
under the Security Documents, and to make further distributions of such funds to the Holders
according to the provisions of this Indenture and the Security Documents.

          (b) All cash and Cash Equivalents received from Asset Dispositions of Collateral, Recovery
Events, Asset Swaps involving the transfer of Collateral, foreclosures of or sales of the
Collateral, and other awards or proceeds pursuant to the Security Documents, including earnings,
revenues, rents, issues, profits and income from the Collateral received pursuant to the Security
Documents, shall be deposited and thereafter shall be held, applied and/or disbursed in accordance
with the terms of this Indenture (including, without limitation, Section 2.1(a),
Section 3.5, Section 6.10 and Section 11.10(a).

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ARTICLE XII

MISCELLANEOUS

          SECTION 12.1. [Reserved].

          SECTION 12.2. Notices. Any notice or communication shall be in writing and delivered
in person, sent by facsimile, delivered by commercial courier service or mailed by first-class
mail, postage prepaid, addressed as follows:

If to the Company or any Subsidiary Guarantor:

Conexant Systems, Inc.

4000 MacArthur Blvd.

Newport Beach, CA 92660

Fax: (949) 483-5536

Attention: Chief Legal Officer

with copies to:

O’Melveny & Myers LLP

1999 Avenue of the Stars

Los Angeles, CA 90067

Attention: David J. Johnson, Jr.

If to the Trustee:

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

2 North LaSalle Street

Suite 1020

Chicago, Illinois 60602

Fax: (402) 496-2014

Attention: Corporate Trust Division

with copies to:

Pryor Cashman LLP

7 Times Square

New York, NY 10036

Fax: (212) 798-6909

Attention: Michael Fruchter, Esq.

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

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          Any notice or communication to the Company or the Subsidiary Guarantors shall be deemed to
have been given or made as of the date so delivered if personally delivered; when receipt is
acknowledged, if telecopied; and five calendar days after mailing if sent by registered or
certified mail, postage prepaid (except that a notice of change of address shall not be deemed to
have been given until actually received by the addressee).

          Any notice or communication mailed to a registered Holder shall be mailed to the Holder at the
Holder’s address as it appears on the registration books of the Registrar and shall be sufficiently
given if so mailed within the time prescribed.

          Failure to mail a notice or communication to a Holder or any defect in it shall not affect its
sufficiency with respect to other Holders. If a notice or communication is mailed in the manner
provided above, it is duly given, whether or not the addressee receives it, except that notices to
the Trustee shall be effective only upon receipt.

          SECTION 12.3. Communication by Holders with other Holders. Holders may communicate
with other Holders with respect to their rights under this Indenture or the Notes.

          SECTION 12.4. Certificate and Opinion as to Conditions Precedent. Upon any request or
application by the Company to the Trustee to take or refrain from taking any action under this
Indenture, the Company shall furnish to the Trustee:

          (a) an Officers’ Certificate in form and substance reasonably satisfactory to the Trustee
stating that, in the opinion of the signers, all conditions precedent, if any, provided for in this
Indenture relating to the proposed action have been complied with; and

          (b) an Opinion of Counsel in form and substance reasonably satisfactory to the Trustee stating
that, in the opinion of such counsel, all such conditions precedent, if any, provided for in this
Indenture relating to the proposed action have been complied with.

          SECTION 12.5. Statements Required in Certificate or Opinion. Each certificate or
opinion with respect to compliance with a covenant or condition provided for in this Indenture
(other than pursuant to Section 3.18) shall include:

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

          (b) a brief statement as to the nature and scope of the examination or investigation upon
which the statements or opinions contained in such certificate or opinion are based;

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

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

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          In giving such Opinion of Counsel, counsel may rely as to factual matters on an Officers’
Certificate or on certificates of public officials.

          SECTION 12.6. When Notes Disregarded. In determining whether the Holders of the
required aggregate principal amount of Notes have concurred in any direction, waiver or consent,
Notes owned by the Company, any Subsidiary Guarantor or any Affiliate of them shall be disregarded
and deemed not to be outstanding, except that, for the purpose of determining whether the Trustee
shall be protected in relying on any such direction, waiver or consent, only Notes which the
Trustee actually knows are so owned shall be so disregarded. Also, subject to the foregoing, only
Notes outstanding at the time shall be considered in any such determination.

          SECTION 12.7. Rules by Trustee, Paying Agent and Registrar. The Trustee may make
reasonable rules for action by, or at meetings of, Holders. The Registrar and the Paying Agent may
make reasonable rules for their functions.

          SECTION 12.8. Legal Holidays. A “Legal Holiday” is a Saturday, a Sunday or
other day on which commercial banking institutions are authorized or required to be closed in New
York, New York. If a
payment date is a Legal Holiday, payment shall be made on the next succeeding day that is not
a Legal Holiday, and no interest shall accrue for the intervening period. If a regular record date
is a Legal Holiday, the record date shall not be affected.

          SECTION 12.9. GOVERNING LAW. THIS INDENTURE, THE SECURITIES AND THE SECURITY
DOCUMENTS SHALL BE GOVERNED BY, AND CONSTRUED IN ACCORDANCE WITH, THE LAWS OF THE STATE OF NEW
YORK. EACH OF THE PARTIES HERETO AGREES TO SUBMIT TO THE JURISDICTION OF THE COURTS OF THE STATE
OF NEW YORK OR OF THE UNITED STATES SITTING IN THE BOROUGH OF MANHATTAN, THE CITY OF NEW YORK IN
ANY ACTION OR PROCEEDING ARISING OUT OF OR RELATING TO THIS INDENTURE, THE SECURITIES OR THE
SUBSIDIARY GUARANTEES. HOWEVER, THE MORTGAGES WILL BE GOVERNED BY, AND CONSTRUED IN ACCORDANCE
WITH, THE LAWS OF THE STATES IN WHICH THE APPLICABLE PREMISES ARE LOCATED.

          SECTION 12.10. No Recourse Against Others. No director, officer, employee,
incorporator or stockholder of the Parent, the Company or any of the Subsidiary Guarantors, as
such, will have any liability for any obligations of the Company or such Subsidiary Guarantor under
the Notes, this Indenture, a Guarantee, the Security Documents or for any claim based on, in
respect of, or by reason of, such obligations or their creation. Each Holder of Notes by accepting
a Note waives and releases all such liability to the extent permitted by applicable law. The waiver
and release are part of the consideration for issuance of the Notes. Such waiver may not be
effective to waive liabilities under the federal securities laws.

          SECTION 12.11. Successors. All agreements of the Company and each Subsidiary
Guarantor in this Indenture and the Notes shall bind their respective successors. All agreements
of the Trustee in this Indenture shall bind its successors.

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          SECTION 12.12. Multiple Originals. The parties may sign any number of copies of this
Indenture. Each signed copy shall be an original, but all of them together represent the same
agreement. One signed copy is enough to prove this Indenture.

          SECTION 12.13. [Reserved].

          SECTION 12.14. Table of Contents; Headings. The table of contents, cross-reference
sheet and headings of the Articles and Sections of this Indenture have been inserted for
convenience of reference only, are not intended to be considered a part hereof and shall not modify
or restrict any of the terms or provisions hereof.

          SECTION 12.15. Force Majeure. In no event shall the Trustee be responsible or liable
for any failure or delay in the performance of its obligations hereunder arising out of or caused
by, directly or indirectly, forces beyond its control, including strikes, work stoppages,
accidents, acts of war or terrorism, civil or military disturbances, nuclear or natural
catastrophes or acts of God, and interruptions, loss or malfunctions of utilities, communications
or computer (software and hardware) services; it being understood that the Trustee shall use
reasonable efforts which are consistent with accepted practices in the banking industry to resume
performance as soon as practicable under the circumstances.

          SECTION 12.16. Waiver of Jury Trial. EACH PARTY HERETO HEREBY WAIVES, TO THE FULLEST
EXTENT PERMITTED BY APPLICABLE LAW, ANY RIGHT IT MAY HAVE TO A TRIAL BY JURY IN RESPECT OF ANY
LITIGATION DIRECTLY OR INDIRECTLY ARISING OUT OF, UNDER OR IN CONNECTION WITH THIS AGREEMENT.

          SECTION 12.17. Severability. In case any one or more of the provisions in this
Indenture or in the Notes shall be held invalid, illegal or unenforceable, in any respect for any
reason, the validity, legality and enforceability of any such provision in every other respect and
of the remaining provisions shall not in any way be affected or impaired thereby, it being intended
that all of the provisions hereof shall be enforceable to the full extent permitted by law.

          SECTION 12.18. USA PATRIOT ACT. The parties hereto acknowledge that, in
accordance with Section 326 of the USA Patriot Act (Title III of Pub. L. 107-56 (signed into law
October 26, 2001)) (as amended, modified or supplemented from time to time, the “USA Patriot Act”),
the Trustee, like all financial institutions, is required to obtain, verify, and record information
that identifies each person or legal entity that opens an account. The parties to this Agreement
agree that they will provide the Trustee with such information as the Trustee may request in order
for the Trustee to satisfy the requirements of the USA Patriot Act.

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

	 	 	 	 	 
	 	CONEXANT SYSTEMS, INC.

 	 
	 	By:  	/s/ Mark D. Peterson
 	 
	 	 	Name:  	Mark D. Peterson 	 
	 	 	Title:  	Senior Vice President, Chief Legal
Officer and Secretary 	 

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	 	CONEXANT, INC.

 	 
	 	By:  	/s/ Mark D. Peterson
 	 
	 	 	Name:  	Mark D. Peterson 	 
	 	 	Title:  	Vice President and Chief Legal Officer 	 

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	 	BROOKTREE BROADBAND HOLDING, INC.

 	 
	 	By  	/s/ Mark D. Peterson
 	 
	 	 	Name:  	Mark D. Peterson 	 
	 	 	Title:  	President 	 

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	 	CONEXANT SYSTEMS WORLDWIDE, INC.

 	 
	 	By  	/s/ Mark D. Peterson
 	 
	 	 	Name:  	Mark D. Peterson 	 
	 	 	Title:  	President 	 

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	 	THE BANK OF NEW YORK MELLON TRUST COMPANY, N.A., 

as Trustee

 	 
	 	By  	/s/ Sharon McGrath
 	 
	 	 	 	 
	 	 	 	 
	 
	 	THE BANK OF NEW YORK MELLON TRUST COMPANY, N.A., 

as Collateral Trustee

 	 
	 	By  	/s/ Sharon McGrath
 	 
	 	 	 	 
	 	 	 	 

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SCHEDULE 3.4

EXISTING ENCUMBRANCES OR RESTRICTIONS

	1.	 	The Indenture, including:

	 	a.	 	The Notes.
	 
	 	b.	 	The Subsidiary Guarantees.
	 
	 	c.	 	The related Security Documents.

	2.	 	Loan and Security Agreement, dated as of December 22, 2009, by and between Conexant CF,
LLC (the “Receivables Entity”) and Silicon Valley Bank, together with that certain
Amendment No. 1 to Loan and Security Agreement dated March 3, 2010, including related
servicing agreements, subordinated note and charter and by-laws of the Receivables Entity.

3.4-1

 

EXHIBIT A

 

[FORM OF FACE OF NOTE]

[Insert OID Legend, if applicable]

	 	 	 	 	 	 	 	 	 
	No. _________	 	Principal Amount $______ ,000, as
	 	 	 	 	 	 	revised by the Schedule of Increases and
	 	 	 	 	 	 	Decreases in Global Note attached hereto
	 

	 	 	 	 	 	CUSIP NO.	 	 
	 

	 	 	 	 	 	 	 	 
	 

	 	 	 	 	 	ISIN:	 	 
	 

	 	 	 	 	 	 	 	 

CONEXANT SYSTEMS, INC.

11.25% Senior Secured Note due 2015

          CONEXANT SYSTEMS, INC., a Delaware corporation, promises to pay to Cede & Co., or its
registered assigns, the principal sum of                                          DOLLARS, as revised by the Schedule of
Increases and Decreases in Global Note attached hereto, on March 15, 2015.

     Interest Payment Dates: March 15 and September 15 commencing                                         

     Record Dates: March 1 and September 1

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

	 	 	 	 	 
	 	CONEXANT SYSTEMS, INC.

 	 
	 	By:  	 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 
	 

	 	 	 	 	 	 	 
	 

	 	Date:	 	 	 	 
	 

	 	 	 	 

	 	 

      

A-1

 

TRUSTEE’S CERTIFICATE OF AUTHENTICATION

THE BANK OF NEW YORK MELLON TRUST COMPANY, N.A.

as Trustee, certifies that this is one of

the Notes referred to in the within

mentioned Indenture.

	 	 	 	 	 
	By:
	 	 	 	 
	 

	 	 

Authorized Signatory
	 	 

Date:                                         

A-2

 

[FORM OF REVERSE SIDE OF NOTE]

CONEXANT SYSTEMS, INC.

11.25% Senior Secured Note due 2015

[Applicable Restricted Notes Legend]

[Depository Legend, if applicable]

1. Interest

Conexant Systems, Inc., a Delaware corporation (such corporation, and its successors and assigns
under the Indenture hereinafter referred to, being herein called the “Company”), promises
to pay interest on the principal amount of this Note at a rate of 11.25% per annum, commencing
                     or from the most recent date on which interest has been paid or duly provided for,
semi-annually in arrears on March 15 and September 15 of each year (each an “Interest Payment
Date”) and at maturity. The first payment of interest will be made on                      for the
period from and including                      to but excluding                     . Interest will be calculated
on the basis of a 360-day year of twelve 30-day months.

If a date for the payment of principal or interest on this Note falls on a day that is not a
Business Day, the related payment of principal or interest will be made on the next succeeding
Business Day as if made on the date the payment was due. No interest shall accrue on any amounts
payable for the period from and after the date for payment of principal or interest on this Note.

Interest on overdue principal and interest, if any, will accrue at a rate that is 2% higher than
the then applicable interest rate on the Notes. The interest rate on the Notes will in no event be
higher than the maximum rate permitted by applicable law.

2. Method of Payment

          By no later than 10:00 a.m. (New York City time) on the date on which any principal of,
premium, if any, or interest on any Note is due and payable, the Company shall irrevocably deposit
with the Trustee or the Paying Agent money sufficient to pay such principal, premium, if any,
and/or interest. The Company will pay interest (except Defaulted Interest) to the Persons who are
registered Holders of Notes at the close of business on the March 1 or September 1 next preceding
the interest payment date even if Notes are cancelled, repurchased or redeemed after the record
date and on or before the interest payment date. Holders must surrender Notes to a Paying Agent to
collect principal payments. The Company will pay principal, premium, if any, and interest in money
of the United States that at the time of payment is legal tender for payment of public and private
debts. Payments in respect of Notes represented by a Global Note (including principal, premium, if
any, and interest) will be made by the transfer of immediately available funds to the accounts
specified by The Depository Trust Company, or any successor depository. The Company will make all
payments in respect of a Definitive Note (including principal, premium, if any, and interest) by
mailing a check to the registered address

A-1

 

of each Holder thereof; provided, however, that payments on the Notes may also be made, in the
case of a Holder of at least $1,000,000 aggregate principal amount of Notes, by wire transfer to a
U.S. dollar account maintained by the payee with a bank in the United States if such Holder elects
payment by wire transfer by giving written notice to the Trustee or the Paying Agent to such effect
designating such account no later than 15 days immediately preceding the relevant due date for
payment (or such other date as the Trustee may accept in its discretion).

3. Paying Agent and Registrar

          Initially, The Bank of New York Mellon Trust Company, N.A. (the “Trustee”) will act as
Trustee, Paying Agent and Registrar. The Company may appoint and change any Paying Agent,
Registrar or co-registrar without notice to any Holder. Any of the domestically organized
Restricted Subsidiaries may act as Paying Agent, Registrar or co-registrar.

4. Indenture

          The Company issued the Notes under an Indenture dated as of March 10, 2010 (as it may be
amended or supplemented from time to time in accordance with the terms thereof, the
“Indenture”), among the Company and the Trustee. Capitalized terms used herein and not
defined herein have the meanings ascribed thereto in the Indenture. The Notes are subject to all
terms and provisions of the Indenture, and Holders are referred to the Indenture for a statement of
those terms.

          The Notes are general senior secured obligations of the Company. The aggregate principal
amount of securities that may be authenticated and delivered under the Indenture is unlimited.
This Note is one of the 11.25% Senior Secured Notes due 2015 referred to in the Indenture. The
Notes include (i) $175,000,000 aggregate principal amount of the Company’s 11.25% Senior Secured
Notes due 2015 issued under the Indenture on March 10, 2010 (herein called “Initial Notes”)
and (ii) if and when issued, additional 11.25% Senior Secured Notes due 2015 of the Company that
may be issued from time to time under the Indenture subsequent to March 10, 2010 (herein called
“Additional Notes”). The Initial Notes and Additional Notes are treated as a single class
of securities under the Indenture. The Indenture imposes certain limitations on the incurrence of
indebtedness, the making of restricted payments, the sale of assets and subsidiary stock, the
incurrence of certain liens, affiliate transactions, the sale of capital stock of restricted
subsidiaries, the making of payments for consents, the entering into of agreements that restrict
distributions from restricted subsidiaries and the consummation of mergers and consolidations. The
Indenture also imposes requirements with respect to the provision of financial information and the
provision of guarantees of the Notes by certain subsidiaries.

          To guarantee the due and punctual payment of the principal, premium, if any, and interest
(including post-filing or post-petition interest) on the Notes and all other amounts payable by the
Company under the Indenture and the Notes when and as the same shall be due and payable, whether at
maturity, by acceleration or otherwise, according to the terms of the Notes and the Indenture, the
Subsidiary Guarantors have fully, unconditionally and irrevocably Guaranteed (and future
guarantors, together with the Subsidiary Guarantors, will fully, unconditionally and irrevocably
Guarantee), jointly and severally, to each Holder of the Notes

A-2

 

and the Trustee the Guarantor Obligations pursuant to Article X of the Indenture on a
senior basis.

5. Redemption

          Optional Redemption

          Except as set forth below, the Notes will not be redeemable at the option of the Company until
March 15, 2013. On and after such date, the Notes will be redeemable, at the Company’s option, in
whole or in part, at any time from time to time, upon not less than 30 nor more than 60 days’ prior
notice, at the following redemption prices (expressed in percentages of principal amount), plus
accrued and unpaid interest on the Notes to be redeemed, if any, to the applicable redemption date
(subject to the right of Holders of Notes on the relevant record date to receive interest due on
the relevant interest payment date), if redeemed during the 12-month period commencing on March 15
of the years set forth below:

	 	 	 	 	 
	Period	 	Percentage	 
	2013
	 	 	105.625	%
	2014 and thereafter
	 	 	100.00	%

     On and after January 1, 2011 until March 15, 2013, the Company may on any one or more
occasions redeem up to 35% of the original principal amount of the Notes, upon not less than 30 nor
more than 60 day’s notice, with the Net Cash Proceeds of Equity Offerings at a redemption price
equal to 111.25% of the principal amount of the Notes redeemed, plus accrued and unpaid interest,
if any, to the applicable redemption date, subject to the right of Holders of Notes on the relevant
record date to receive interest due on the relevant interest payment date; provided, that at least
65% of the original principal amount of the Notes (excluding Notes held by the Company and its
Subsidiaries) must remain outstanding after each such redemption and that each such redemption
occurs within 90 days of the date of closing of such Equity Offering.

          At any time prior to March 13, 2013, the Company may, on any one or more occasions, redeem all
or a part of the Notes, upon not less than 30 nor more than 60 days’ notice, at a redemption price
equal to 100% of the principal amount of Notes redeemed, plus the Applicable Premium as of, and the
accrued and unpaid interest, if any, to, the applicable redemption date, subject to the rights of
Holders of Notes on the relevant record date to receive interest due on the relevant interest
payment date.

          Unless the Company defaults in payment of the redemption price, interest will cease to accrue
on the Notes or portion thereof called for redemption on the applicable redemption date.

          Mandatory Redemption

     The Company is not required to make mandatory redemption payments or sinking fund payments
with respect to the Notes.

A-3

 

6. Repurchase Provisions

          If a Change of Control occurs, unless the Company has exercised its right to redeem all of the
Notes pursuant to Section 5 of the Notes, then such Change of Control shall constitute a triggering
event which shall trigger the obligation of the Company to offer to repurchase from each Holder all
or any part (equal to $2,000 or an integral of $1,000 in excess thereof) of such Holder’s Notes at
a purchase price in cash equal to 101% of the principal amount thereof, plus accrued and unpaid
interest, if any, to the date of repurchase (subject to the right of Holders of record on the
relevant record date to receive interest due on the relevant interest payment date) as provided in,
and subject to the terms of, the Indenture.

7. Denominations; Transfer; Exchange

          The Notes are in registered form without coupons in denominations of principal amount of
$2,000 and whole multiples of $1,000 in excess thereof. A Holder may transfer or exchange Notes in
accordance with the Indenture. The Registrar may require a Holder, among other things, to furnish
appropriate endorsements or transfer documents and to pay a sum sufficient to cover any transfer
tax or other governmental taxes and fees required by law or permitted by the Indenture. The
Registrar need not register the transfer of or exchange of any Note for a period beginning 15 days
before the mailing of a notice of an offer to repurchase or redeem Notes and ending at the close of
business on the day of such mailing. The Registrar shall not be required to register the transfer
of or exchange of any Note selected for redemption.

8. Persons Deemed Owners

          The registered Holder of this Note may be treated as the owner of it for all purposes.

9. Unclaimed Money

          Subject to any applicable abandoned property law, the Trustee and the Paying Agent shall pay
to the Company upon request any money held by them for the payment of principal of or premium, if
any, or interest on the Notes that remains unclaimed by the Holders thereof for two years, and,
thereafter, Holders entitled to the money must look to the Company for payment as unsecured general
creditors.

10. Defeasance

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

11. Amendment, Supplement, Waiver

          The Indenture, the Guarantees, the Security Documents and the Notes may be amended or
supplemented as provided in the Indenture.

A-4

 

12. Defaults and Remedies

          The Events of Default relating to the Notes are defined in Section 6.1 of the Indenture. Upon
the occurrence of an Event of Default, the rights and obligations of the Company, the Guarantors,
the Trustee and the Holders shall be as set forth in the Indenture.

13. Trustee Dealings with the Company

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

14. No Recourse Against Others

          No director, officer, employee, incorporator, stockholder or member of the Company or any
Subsidiary or Affiliate of the Company, as such, shall have any liability for any obligations of
the Company under the Notes, the Indenture, the Subsidiary Guarantees or the Security Documents or
for any claim based on, in respect of, or by reason of, such obligations or their creation. Each
Holder by accepting a Note waives and releases all such liability. The waiver and release are part
of the consideration for issuance of the Notes. Such waiver may not be effective to waive
liabilities under the federal securities laws and it is the view of the SEC that such a waiver is
against public policy.

15. Authentication

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

16. Abbreviations

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

17. CUSIP, Common Code and ISIN Numbers

          The Company has caused CUSIP, Common Code or ISIN numbers, if applicable, to be printed on the
Notes and has directed the Trustee to use CUSIP, Common Code or ISIN numbers, if applicable, in
notices of redemption as a convenience to Holders. No representation is made as to the accuracy of
such numbers either as printed on the Notes or as contained in any notice of redemption, and
reliance may be placed only on the other identification numbers placed thereon.

A-5

 

18. Governing Law

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

          The Company will furnish to any Holder upon written request and without charge to the Holder a
copy of the Indenture. Requests may be made to:

Conexant Systems, Inc.

4000 MacArthur Blvd.

West Tower

Newport Beach, CA 92660

Attention: Chief Legal Officer

A-6

 

ASSIGNMENT FORM

          To assign this Note, fill in the form below:

          I or we assign and transfer this Note to:

 

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

 

(Insert assignee’s social security or tax I.D. No.)

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

 

 

	 	 	 	 	 	 	 
	Date:

	 	 	 	Your Signature:	 	 
	 

	 	 
	 	 	 	 

	 	 	 
	Signature Guarantee:
	 	 
	 

	 	 
	 

	 	(Signature must be guaranteed)

 

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

The signature(s) should be guaranteed by an eligible guarantor institution (banks, stockbrokers,
savings and loan associations and credit unions with membership in an approved signature guarantee
medallion program), pursuant to SEC Rule 17Ad-15.

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

CHECK ONE BOX BELOW:

	 	1o	 	acquired for the undersigned’s own account, without transfer; or
	 
	 	2o	 	transferred to the Company; or
	 
	 	3o	 	transferred pursuant to and in compliance with Rule 144A under the Securities Act
of 1933, as amended (the “Securities Act”); or
	 
	 	4o	 	transferred pursuant to an effective registration statement under the Securities
Act; or
	 
	 	5o	 	transferred pursuant to and in compliance with Regulation S under the Securities
Act; or

A-7

 

	 	6o	 	transferred to an institutional “accredited investor” (within the meaning of Rule
501(a)(1), (2), (3) or (7) under the Securities Act), that has furnished to the Trustee
a signed letter containing certain representations and agreements (the form of which
letter appears as Section 2.7 of the Indenture); or
	 
	 	7o	 	transferred pursuant to another available exemption from the registration
requirements of the Securities Act.

Unless one of the boxes is checked, the Trustee will refuse to register any of the Notes evidenced
by this certificate in the name of any person other than the registered Holder thereof; provided,
however, that if box (5), (6) or (7) is checked, the Trustee or the Company may require, prior to
registering any such transfer of the Notes, the delivery of an opinion of counsel, certification
and/or other information satisfactory to each of them to confirm that such transfer is being made
pursuant to an exemption from, or in a transaction not subject to, the registration requirements of
the Securities Act, such as the exemption provided by Rule 144 under such Act.

	 	 	 
	 
	 	 
	 

	 	 
	 

	 	Signature
	 
	 	 
	 
	 	 
	Signature Guarantee:
	 	 
	 
	 	 
	 
	 	 
	 

	 	 
	(Signature must be guaranteed)

	 	Signature
	 
	 	 
	 

The signature(s) should be guaranteed by an eligible guarantor institution (banks, stockbrokers,
savings and loan associations and credit unions with membership in an approved signature guarantee
medallion program), pursuant to SEC Rule 17Ad-15.

TO BE COMPLETED BY PURCHASER IF (1) OR (3) ABOVE IS CHECKED.

          The undersigned represents and warrants that it is purchasing this Note for its own account or
an account with respect to which it exercises sole investment discretion and that it and any such
account is a “qualified institutional buyer” within the meaning of Rule 144A under the Securities
Act of 1933, as amended, and is aware that the sale to it is being made in reliance on Rule 144A
and acknowledges that it has received such information regarding the Company as the undersigned has
requested pursuant to Rule 144A or has determined not to request such information and that it is
aware that the transferor is relying upon the undersigned’s foregoing representations in order to
claim the exemption from registration provided by Rule 144A.

	 	 	 
	 

	 	 
	 

	 	Dated:

A-8

 

[TO BE ATTACHED TO GLOBAL SECURITIES]

SCHEDULE OF INCREASES AND DECREASES IN GLOBAL SECURITY

          The following increases and decreases in this Global Note have been made:

	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	Signature of
	 	 	 	 	 	 	Principal Amount of	 	authorized
	 	 	 	 	 	 	this Global Note	 	signatory of
	 	 	Amount of decrease	 	Amount of increase	 	following such	 	Trustee or
	Date of Decrease or	 	in Principal Amount	 	in Principal Amount	 	decrease or	 	Securities
	Increase	 	of this Global Note	 	of this Global Note	 	increase	 	Custodian
	 	 	 	 	 	 	 	 	 

A-9

 

OPTION OF HOLDER TO ELECT PURCHASE

          If you elect to have this Note purchased by the Company pursuant to Section 3.5 or
3.11 of the Indenture, check either box:

	 	 	 	 	 
	o

	 	  o

	3.5

	 	3.11	 

          If you want to elect to have only part of this Note purchased by the Company pursuant to
Section 3.5 or Section 3.11 of the Indenture, state the amount in principal amount
(must be integral multiple of $1,000): $                                          
                                                           

	 	 	 	 	 	 	 
	Date:

	 	 	 	Your Signature:	 	 
	 

	 	 
	 	 	 	 
	 	 	 	 	(Sign exactly as your name appears on the other side of the Note)

	 	 	 
	Signature Guarantee:
	 	 
	 

	 	 
	 

	 	(Signature must be guaranteed)

The signature(s) should be guaranteed by an
eligible guarantor institution (banks,
stockbrokers, savings and loan associations
and credit unions with membership in an
approved signature guarantee medallion
program), pursuant to SEC Rule
17Ad-15.

A-10

 

EXHIBIT B

FORM OF INDENTURE SUPPLEMENT TO ADD SUBSIDIARY GUARANTORS

          This Supplemental Indenture, dated as of _______ ____, 20___ (this “Supplemental
Indenture” or “Guarantee”), among [name of future Subsidiary Guarantor] (the
“Guarantor”), CONEXANT SYSTEMS, INC. (together with its successors and assigns, the
“Company”), each other then-existing Guarantors under the Indenture referred to below, and
The Bank of New York Mellon Trust Company, N.A., as Trustee under the Indenture referred to below.

W I T N E S S E T H:

          WHEREAS, the Company, the Subsidiary Guarantors and the Trustee have heretofore executed and
delivered an Indenture, dated as of March [___], 2010 (as amended, supplemented, waived or otherwise
modified, the “Indenture”), providing for the issuance of 11.25% Senior Secured Notes due
2015 of the Company (the “Notes”);

          WHEREAS, Section 3.13 of the Indenture provides that under certain circumstances the
Company is required to cause each Restricted Subsidiary that Guarantees any Indebtedness of the
Company or of any other Restricted Subsidiary to execute and deliver to the Trustee a supplemental
indenture pursuant to which such Restricted Subsidiary will unconditionally Guarantee, on a joint
and several basis with the other Subsidiary Guarantors, the full and prompt payment of the
principal of, premium, if any, and interest on the Notes on a senior basis; and

          WHEREAS, pursuant to Section 10.1 of the Indenture, the Trustee, the Company and the
Subsidiary Guarantors are authorized to execute and deliver this Supplemental Indenture to amend or
supplement the Indenture, without the consent of any Holder;

          NOW, THEREFORE, in consideration of the foregoing and for other good and valuable
consideration, the receipt of which is hereby acknowledged, the Guarantor, the Company, the other
Subsidiary Guarantors and the Trustee mutually covenant and agree for the equal and ratable benefit
of the Holders of the Notes as follows:

ARTICLE I

Definitions

          SECTION 1.1 Defined Terms. As used in this Supplemental Indenture, terms defined in
the Indenture or in the preamble or recital hereto are used herein as therein defined, except that
the term “Holders” in this Guarantee shall refer to the term “Holders” as defined
in the Indenture and the Trustee acting on behalf or for the benefit of such Holders. The words

B-1

 

“herein,” “hereof” and “hereby” and other words of similar import used in this Supplemental
Indenture refer to this Supplemental Indenture as a whole and not to any particular section hereof.

ARTICLE II

Agreement to be Bound; Guarantee

          SECTION 2.1 Agreement to be Bound. The Guarantor hereby becomes a party to the
Indenture as a Subsidiary Guarantor and as such will have all of the rights and be subject to all
of the obligations and agreements of a Subsidiary Guarantor under the Indenture. The Guarantor
agrees to be bound by all of the provisions of the Indenture applicable to a Subsidiary Guarantor
and to perform all of the obligations and agreements of a Subsidiary Guarantor under the Indenture.

          SECTION 2.2 Guarantee. The Guarantor agrees, on a joint and several basis with all
the existing Subsidiary Guarantors, to fully, unconditionally and irrevocably Guarantee to each
Holder of the Notes and the Trustee the Guarantor Obligations pursuant to Article X of the
Indenture on a senior basis.

ARTICLE III

Miscellaneous

          SECTION 3.1 Notices. All notices and other communications to the Guarantor shall be
given as provided in the Indenture to the Guarantor, at its address set forth below, with a copy to
the Company as provided in the Indenture for notices to the Company.

          SECTION 3.2 Parties. Nothing expressed or mentioned herein is intended or shall be
construed to give any Person, firm or corporation, other than the Holders and the Trustee, any
legal or equitable right, remedy or claim under or in respect of this Supplemental Indenture or the
Indenture or any provision herein or therein contained.

          SECTION 3.3 Governing Law. This Supplemental Indenture shall be governed by, and
construed in accordance with, the laws of the State of New York.

          SECTION 3.4 Ratification of Indenture; Supplemental Indenture Part of Indenture.
Except as expressly amended hereby, the Indenture is in all respects ratified and confirmed and all
the terms, conditions and provisions thereof shall remain in full force and effect. This
Supplemental Indenture shall form a part of the Indenture for all purposes, and every Holder of
Notes heretofore or hereafter authenticated and delivered shall be bound hereby. The Trustee makes
no representation or warranty as to the validity or sufficiency of this Supplemental Indenture.

B-2

 

          SECTION 3.5 Counterparts. The parties hereto may sign one or more copies of this
Supplemental Indenture in counterparts, all of which together shall constitute one and the same
agreement.

          SECTION 3.6 Headings. The headings of the Articles and the Sections in this
Guarantee are for convenience of reference only and shall not be deemed to alter or affect the
meaning or interpretation of any provisions hereof.

          SECTION 3.7 Trustee. The Trustee makes no representation as to the validity or
sufficiency of this Supplemental Indenture. The recitals and statements herein are deemed to be
those of the Guarantor and not of the Trustee.

B-3

 

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

	 	 	 	 	 
	 	[GUARANTOR],

as a Guarantor

 	 
	 	By:  	 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 

	 	 	 	 	 
	 	                [Address]

	 

	 	 	 	 	 
	 	THE BANK OF NEW YORK MELLON TRUST COMPANY, N.A.

as Trustee

 	 
	 	By:  	 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 

	 	 	 	 	 
	 	CONEXANT SYSTEMS, INC.

 	 
	 	By:  	 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 

	 	 	 	 	 
	 	[EXISTING GUARANTORS]	 

	 	 	 	 	 
	 	By:  	
 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 
	 

B-4exv4w2

Exhibit 4.2

 

BLANKET LIEN PLEDGE AND SECURITY AGREEMENT

among

EACH OF CONEXANT SYSTEMS, INC.

and

THE GRANTORS PARTY HERETO

and

THE BANK OF NEW YORK MELLON TRUST COMPANY, N.A.,

as Collateral Trustee

dated as of March 10, 2010

 

 

 

TABLE OF CONTENTS

	 	 	 	 	 
	 	 	Page	 
	SECTION 1. DEFINITIONS; INTERPRETATION.
	 	 	1	 
	1.1 General Definitions
	 	 	1	 
	1.2 Certain Definitions; Interpretation
	 	 	7	 
	 
	 	 	 	 
	SECTION 2. GRANT OF SECURITY.
	 	 	7	 
	2.1 Grant of Security
	 	 	7	 
	2.2 Certain Limited Exclusions
	 	 	8	 
	 
	 	 	 	 
	SECTION
3. GRANTORS REMAIN LIABLE.
	 	 	10	 
	 
	 	 	 	 
	SECTION
4. CERTAIN PERFECTION REQUIREMENTS.
	 	 	11	 
	4.1 Delivery Requirements
	 	 	11	 
	4.2 Control Requirements
	 	 	11	 
	4.3 Intellectual Property Recording Requirements
	 	 	12	 
	4.4 Other Actions
	 	 	12	 
	4.5 Timing and Notice
	 	 	12	 
	 
	 	 	 	 
	SECTION 5. REPRESENTATIONS AND WARRANTIES.
	 	 	13	 
	5.1 Grantor Information & Status
	 	 	13	 
	5.2 Collateral Identification, Special Collateral
	 	 	14	 
	5.3 Ownership of Collateral and Absence of Other Liens
	 	 	15	 
	5.4 Status of Security Interest
	 	 	15	 
	5.5 Goods
	 	 	16	 
	5.6 Pledged Equity Interests, Investment Related Property
	 	 	16	 
	5.7 Intellectual Property
	 	 	16	 
	5.8 Miscellaneous
	 	 	18	 
	 
	 	 	 	 
	SECTION 6. COVENANTS AND AGREEMENTS.
	 	 	18	 
	6.1 Grantor Information & Status
	 	 	18	 
	6.2 Collateral Identification; Special Collateral
	 	 	18	 
	6.3 Ownership of Collateral and Absence of Other Liens
	 	 	18	 
	6.4 Status of Security Interest
	 	 	19	 
	6.5 Goods
	 	 	19	 
	6.6 Pledged Equity Interests, Investment Related Property
	 	 	20	 
	6.7 Intellectual Property
	 	 	21	 
	6.8 Maintenance of Collateral
	 	 	22	 
	6.9 Certain Proceeds.
	 	 	22	 
	6.10 After-Acquired Property
	 	 	23	 
	6.11 Collateral Account
	 	 	23	 
	 
	 	 	 	 
	SECTION 7. RIGHT OF INSPECTION AND FURTHER ASSURANCES; ADDITIONAL GRANTORS.
	 	 	23	 
	7.1 Right of Inspection
	 	 	23	 
	7.2 Further Assurances
	 	 	23	 
	7.3 Additional Grantors
	 	 	25	 
	 
	 	 	 	 
	SECTION 8. COLLATERAL TRUSTEE APPOINTED ATTORNEY-IN-FACT.
	 	 	25	 
	8.1 Power of Attorney
	 	 	25	 

i

 

	 	 	 	 	 
	 	 	Page	 
	8.2 No Duty on the Part of Collateral Trustee or Secured Parties
	 	 	26	 
	 
	 	 	 	 
	SECTION 9. REMEDIES.
	 	 	27	 
	9.1 Generally
	 	 	27	 
	9.2 Application of Proceeds
	 	 	28	 
	9.3 Sales on Credit
	 	 	28	 
	9.4 Investment Related Property
	 	 	28	 
	9.5 Grant of Intellectual Property License
	 	 	29	 
	9.6 Intellectual Property
	 	 	29	 
	 
	 	 	 	 
	SECTION 10. COLLATERAL TRUSTEE.
	 	 	31	 
	 
	 	 	 	 
	SECTION 11. CONTINUING SECURITY INTEREST.
	 	 	31	 
	 
	 	 	 	 
	SECTION 12. STANDARD OF CARE; COLLATERAL TRUSTEE MAY PERFORM.
	 	 	31	 
	 
	 	 	 	 
	SECTION 13. MISCELLANEOUS.
	 	 	32	 

	 
	SCHEDULES

	SCHEDULE 5.1 — GENERAL INFORMATION

	SCHEDULE 5.2 — COLLATERAL IDENTIFICATION

	SCHEDULE 5.3 —REPRESENTATION EXCEPTIONS

	SCHEDULE 5.4 — FINANCING STATEMENTS

	SCHEDULE 5.5 — LOCATION OF EQUIPMENT AND INVENTORY

	 

	EXHIBITS

	EXHIBIT A — PLEDGE SUPPLEMENT

	EXHIBIT B — UNCERTIFICATED SECURITIES CONTROL AGREEMENT

	EXHIBIT C — TRADEMARK SECURITY AGREEMENT

	EXHIBIT D — PATENT SECURITY AGREEMENT

	EXHIBIT E — COPYRIGHT SECURITY AGREEMENT

	EXHIBIT F — DEPOSIT ACCOUNT CONTROL AGREEMENT

	EXHIBIT G — CONSENT TO EQUITY PLEDGE

Index of Defined Terms

	 	 	 	 	 
	Additional Grantor
	 	 	24	 
	Agreement
	 	 	1	 
	Assigned Agreements
	 	 	1	 
	Bankruptcy Code
	 	 	8	 
	Board of Directors
	 	 	1	 
	CFC
	 	 	9	 
	Collateral
	 	 	7	 
	Collateral Account
	 	 	1	 
	Collateral Records
	 	 	2	 
	Collateral Support
	 	 	2	 
	Collateral Trust Agreement
	 	 	1	 
	Collateral Trustee
	 	 	1	 
	Company
	 	 	1	 
	Control
	 	 	2	 
	Controlled Foreign Corporation
	 	 	2	 
	Controlled Issuer
	 	 	2	 
	Copyright Licenses
	 	 	2	 
	Copyrights
	 	 	2	 
	Excluded Asset
	 	 	3	 
	Excluded Property
	 	 	8	 
	First Tier Foreign Subsidiary
	 	 	3	 
	Grantor
	 	 	1	 
	Guarantor Obligations
	 	 	3	 
	Indemnitee
	 	 	3	 
	Indenture
	 	 	1	 
	Insurance
	 	 	3	 

ii

 

	 	 	 	 	 
	Intellectual Property

	 	 	3	 
	Intellectual Property Security Agreement
	 	 	3	 
	Internal Revenue Code
	 	 	3	 
	Investment Accounts
	 	 	3	 
	Investment Related Property
	 	 	3	 
	Material Adverse Effect
	 	 	3	 
	Material Intellectual Property
	 	 	3	 
	Newport Beach Property
	 	 	9	 
	Patent Licenses
	 	 	4	 
	Patents
	 	 	4	 
	Pledge Supplement
	 	 	4	 
	Pledged Debt
	 	 	4	 
	Pledged Equity Interests
	 	 	4	 
	Pledged LLC Interests
	 	 	4	 
	Pledged Partnership Interests
	 	 	4	 
	Pledged Stock
	 	 	5	 
	Qualified Related Receivable Rights
	 	 	5	 
	Receivable
	 	 	5	 
	Receivables Entity
	 	 	5	 
	Records
	 	 	5	 
	Related Inventory Rights
	 	 	5	 
	Related Receivable Rights
	 	 	5	 
	Restoration
	 	 	22	 
	Secured Debt Default
	 	 	6	 
	Secured Obligations
	 	 	6	 
	Secured Parties
	 	 	6	 
	Securities
	 	 	6	 
	Securities Act
	 	 	6	 
	Trade Secret Licenses
	 	 	6	 
	Trade Secrets
	 	 	6	 
	Trademark Licenses
	 	 	6	 
	Trademarks
	 	 	6	 
	Trustee
	 	 	1	 
	UCC
	 	 	7	 
	United States
	 	 	7	 

iii

 

BLANKET LIEN PLEDGE AND SECURITY AGREEMENT

This BLANKET LIEN PLEDGE AND SECURITY AGREEMENT is dated as of March 10, 2010 (as it may be
amended, restated, supplemented or otherwise modified from time to time, this “Agreement”),
among CONEXANT SYSTEMS, INC. (the “Company”), and each of the subsidiary guarantors party
hereto from time to time, whether as an original signatory hereto or as an Additional Grantor (as
herein defined) (the Company and each such additional party, a “Grantor”), and THE BANK OF
NEW YORK MELLON TRUST COMPANY, N.A., as Collateral Trustee for the Secured Parties (as herein
defined) (in such capacity as Collateral Trustee, together with its successors and permitted
assigns, the “Collateral Trustee”).

RECITALS:

WHEREAS, reference is made to (a) that certain Indenture dated as of the date hereof (as it
may be amended, restated, supplemented or otherwise modified from time to time, the
“Indenture”), by and among the Company, the subsidiary guarantors named therein and The
Bank of New York Mellon Trust Company, N.A., as trustee thereunder (the “Trustee”), and (b)
that certain Collateral Trust Agreement, dated as of the date hereof (as it may be amended,
restated, supplemented or otherwise modified from time to time, the “Collateral Trust
Agreement”) by and among the Company, the subsidiary guarantors from time to time party
thereto, the Trustee and the Collateral Trustee; and

WHEREAS, each Grantor has agreed to secure such Grantor’s obligations under the Indenture and any
future Shared Lien Documents (as defined in the Collateral Trust Agreement) as set forth herein;
and

NOW, THEREFORE, in consideration of the premises and the agreements, provisions and covenants
herein contained, each Grantor and the Collateral Trustee agree as follows:

SECTION 1. DEFINITIONS; INTERPRETATION.

	 	1.1	 	General Definitions.  In this Agreement, the following terms shall have the
following meanings:

“Assigned Agreements” means all agreements and contracts to which such Grantor is a party
as of the date hereof, or to which such Grantor becomes a party after the date hereof, other than
agreements and contracts constituting Excluded Assets, including, without limitation, each material
contract (including, without limitation, those so identified on Schedule 5.2(VI), as each
such agreement may be amended, supplemented or otherwise modified from time to time in accordance
with the terms of the Shared Lien Documents.

“Board of Directors” means (a) with respect to a corporation, the board of directors of the
corporation or any committee thereof duly authorized to act on behalf of such board, (b) with
respect to a partnership, the Board of Directors of the general partner of the partnership, (c)
with respect to a limited liability company, the managing member or members or any controlling
committee of managing members thereof and (d) with respect to any other Person, the board or
committee of such Person serving a similar function.

1

 

“Collateral Account” means any account established by the Collateral Trustee pursuant to
Section 6.11 of this Agreement, which shall be a Deposit Account.

“Collateral Records” means books, records, ledger cards, files, correspondence, customer
lists, supplier lists, blueprints, technical specifications, manuals, computer software and related
documentation, computer printouts, tapes, disks and other electronic storage media and related data
processing software and similar items that at any time evidence or contain information relating to
any of the Collateral or are otherwise necessary or helpful in the collection thereof or
realization thereupon.

“Collateral Support” means all property (real or personal) assigned, hypothecated or
otherwise securing any Collateral and shall include any security agreement or other agreement
granting a Lien or security interest in such real or personal property.

“Control” means: (1) with respect to any Deposit Accounts, control within the meaning of
Section 9-104 of the UCC, (2) with respect to any Security Entitlements, Commodity Contract or
Commodity Account, control within the meaning of Section 9-106 of the UCC, (3) with respect to any
Uncertificated Securities, control within the meaning of Section 8-106(c) of the UCC, (4) with
respect to any Certificated Security, control within the meaning of Section 8-106(a) or (b) of the
UCC, (5) with respect to any Electronic Chattel Paper, control within the meaning of Section 9-105
of the UCC, (6) with respect to Letter of Credit Rights, control within the meaning of Section
9-107 of the UCC and (7) with respect to any “transferable record” (as that term is defined in
Section 201 of the Federal Electronic Signatures in Global and National Commerce Act or in Section
16 of the Uniform Electronic Transactions Act as in effect in any relevant jurisdiction), control
within the meaning of Section 201 of the Federal Electronic Signatures in Global and National
Commerce Act or in Section 16 of the Uniform Electronic Transactions Act as in effect in the
jurisdiction relevant to such transferable record.

“Controlled Foreign Corporation” means “controlled foreign corporation” within the meaning
of Section 957 of the Internal Revenue Code.

“Controlled Issuer” means any issuer that any Grantor beneficially owns and controls in the
aggregate (a) at least 51%, on a fully-diluted basis, of the voting power in the Capital Stock of
such issuer and (6) equity interests in such issuer sufficient to elect a majority of the Board of
Directors of such issuer.

“Copyright Licenses” means any and all agreements, licenses and covenants providing for the
granting of any right in or to any Copyright or otherwise providing for a covenant not to sue for
infringement or other violation of any Copyright (whether such Grantor is licensee or licensor
thereunder) including, without limitation, each agreement required to be listed in Schedule
5.2(II) under the heading “Copyright Licenses” (as such schedule may be amended or supplemented
from time to time in accordance with the terms of the Collateral Trust Agreement).

“Copyrights” means all United States and foreign copyrights (whether or not the underlying
works of authorship have been published), including but not limited to copyrights in software and
all rights in and to databases, all designs (including but not limited to industrial designs,
Protected Designs within the meaning of 17 U.S.C. 1301 et. Seq. and Community designs), and all
Mask Works (as defined under 17 U.S.C. 901 of the U.S. Copyright Act), whether registered or
unregistered, as well as all moral rights, reversionary interests, and termination rights, and,
with respect to any and all of the foregoing: (i) all registrations and applications therefor
including, without limitation, the registrations and applications required to be listed in
Schedule 5.2(II) under the heading “Copyrights” (as such schedule may be amended or
supplemented from time to time in accordance with the terms of the
Collateral Trust Agreement), (ii) all extensions and renewals thereof, (iii) the right to sue or
otherwise recover for any past, present and future infringement or other violation thereof, (iv)
all Proceeds of the foregoing,

2

 

including, without limitation, license fees, royalties, income, payments, claims, damages and proceeds of suit now or hereafter due and/or payable with respect
thereto, and (v) all other rights of any kind accruing thereunder or pertaining thereto throughout
the world.

“Excluded Asset” means any asset of any Grantor excluded from the security interest
hereunder by virtue of Section 2.2 hereof but only to the extent, and for so long as, so
excluded thereunder.

“First Tier Foreign Subsidiary” means any Restricted Subsidiary organized outside the
United States that is directly owned by the Company or a Grantor.

“Guarantor Obligations” means, with respect to any Grantor other than the Company, all
obligations and liabilities of such Grantor which may arise under or in connection with this
Agreement or any other Shared Lien Document to which such Grantor is a party (including, without
limitation, Article 11 of the Indenture), in each case whether on account of guarantee obligations,
reimbursement obligations, fees, indemnities, costs, expenses or otherwise (including, without
limitation, all attorney costs that are required to be paid by such Grantor pursuant to the terms
of this Agreement or any other Shared Lien Document).

“Indemnitee” means the Collateral Trustee, and its and its Affiliates’ officers, partners,
directors, trustees, employees, agents.

“Insurance” means all insurance policies covering any or all of the Collateral (regardless
of whether the Collateral Trustee is the loss payee thereof).

“Intellectual Property” means, the collective reference to all rights, priorities and
privileges relating to intellectual property, whether arising under the United States,
multinational or foreign laws or otherwise, including without limitation, Copyrights, Copyright
Licenses, Patents, Patent Licenses, Trademarks, Trademark Licenses, Trade Secrets, and Trade Secret
Licenses, and the right to sue or otherwise recover for any past, present and future infringement,
dilution, misappropriation, or other violation or impairment thereof, including the right to
receive all Proceeds therefrom, including without limitation license fees, royalties, income,
payments, claims, damages and proceeds of suit, now or hereafter due and/or payable with respect
thereto.

“Intellectual Property Security Agreement” means each intellectual property security
agreement executed and delivered by the applicable Grantors, substantially in the form set forth in
Exhibit C, Exhibit D and Exhibit E, as applicable.

“Internal Revenue Code” means the Internal Revenue Code of 1986 (U.S.C. Title 26), as
amended.

“Investment Accounts” means the Collateral Account and Commodity Accounts.

“Investment Related Property” means: (i) all “investment property” (as such term is
defined in Article 9 of the UCC) other than Securities Accounts (as defined in Section 8-501 of the
UCC) and “investment property” contained in such Securities Accounts and (ii) all of the following
(regardless of whether classified as investment property under the UCC): all Pledged Equity
Interests, Pledged Debt, the Investment Accounts and certificates of deposit.

“Material Adverse Effect” means a material adverse effect on (a) the business, results of
operations or financial condition of the Company or the Company and its Subsidiaries taken as a
whole (b) the rights and remedies of the Collateral Trustee under any Shared Lien Document or
(c) the ability of any Grantor to perform its obligations under any Shared Lien Document to which
it is a party.

3

 

“Material Intellectual Property” means any Intellectual Property included in the Collateral
that is material to the business of any Grantor or is otherwise of material value.

“Patent Licenses” means all agreements, licenses and covenants providing for the granting
of any right in or to any Patent or otherwise providing for a covenant not to sue for infringement
or other violation of any Patent (whether such Grantor is licensee or licensor thereunder)
including, without limitation, each agreement required to be listed in Schedule 5.2(II)
under the heading “Patent Licenses” (as such schedule may be amended or supplemented from time to
time in accordance with the terms of the Collateral Trust Agreement).

“Patents” means all United States and foreign patents and certificates of invention, or
similar industrial property rights, and applications for any of the foregoing, including, without
limitation: (i) each patent and patent application required to be listed in Schedule
5.2(II) under the heading “Patents” (as such schedule may be amended or supplemented from time
to time in accordance with the terms of the Collateral Trust Agreement), (ii) all reissues,
divisions, continuations, continuations-in-part, extensions, renewals, and reexaminations thereof,
(iii) all patentable inventions and improvements thereto, (iv) the right to sue or otherwise
recover for any past, present and future infringement or other violation thereof, (v) all Proceeds
of the foregoing, including, without limitation, license fees, royalties, income, payments, claims,
damages, and proceeds of suit now or hereafter due and/or payable with respect thereto, and (vi)
all other rights of any kind accruing thereunder or pertaining thereto throughout the world.

“Pledge Supplement” means any supplement to this Agreement in substantially the form of
Exhibit A.

“Pledged Debt” means all indebtedness for borrowed money owed to any Grantor, whether or
not evidenced by any Instrument, including, without limitation, all indebtedness described on
Schedule 5.2(I) under the heading “Pledged Debt” (as such schedule may be amended or
supplemented from time to time in accordance with the terms thereof), issued by the obligors named
therein, the instruments, if any, evidencing any of the foregoing, any other promissory note at any
time issued to or held by any Grantor, and all interest, cash, instruments and other property or
proceeds from time to time received, receivable or otherwise distributed in respect of or in
exchange for any or all of the foregoing.

“Pledged Equity Interests” means all Pledged Stock, Pledged LLC Interests, and Pledged
Partnership Interests (excluding any Excluded Assets).

“Pledged LLC Interests” means all interests owned by a Grantor in any limited liability
company and each series thereof including, without limitation, all limited liability company
interests listed on Schedule 5.2(I) under the heading “Pledged LLC Interests” (as such
schedule may be amended or supplemented from time to time in accordance with the terms hereof) and
the certificates, if any, representing such limited liability company interests and any interest of
such Grantor on the books and records of such limited liability company or on the books and records
of any securities intermediary pertaining to such interest and all dividends, distributions, cash,
warrants, rights, options, instruments, securities and other property or proceeds from time to time
received, receivable or otherwise distributed in respect of or in exchange for any or all of such
limited liability company interests (excluding any Excluded Assets).

“Pledged Partnership Interests” means all interests owned by a Grantor in any general
partnership, limited partnership, limited liability partnership or other partnership including,
without limitation, all partnership interests listed on Schedule 5.2(I) under the heading
“Pledged Partnership Interests” (as such schedule may be amended or supplemented from time to time
in accordance with the terms hereof) and the certificates, if any, representing such partnership
interests and any interest of such Grantor on the books and records of such partnership or on the
books and records of any securities intermediary pertaining to such interest and all dividends,
distributions, cash, warrants, rights, options, instruments, securities and

4

 

other property or proceeds from time to time received, receivable or otherwise distributed in respect of or in
exchange for any or all of such partnership interests (excluding any Excluded Assets).

“Pledged Stock” means all shares of Capital Stock owned by a Grantor, including, without
limitation, all shares of Capital Stock described on Schedule 5.2(I) under the heading
“Pledged Stock” (as such schedule may be amended or supplemented from time to time in accordance
with the terms hereof), and the certificates, if any, representing such shares and any interest of
such Grantor in the entries on the books of the issuer of such shares or on the books of any
securities intermediary pertaining to such shares, and all dividends, distributions, cash,
warrants, rights, options, instruments, securities and other property or proceeds from time to time
received, receivable or otherwise distributed in respect of or in exchange for any or all of such
shares (excluding any Excluded Assets).

“Qualified Related Receivable Rights” means, with respect to a Receivable, whether now
existing or hereafter acquired or arising, those property and related rights that are customarily
sold, conveyed or otherwise transferred (as determined by an Officer’s Certificate at the time the
applicable facility providing for a Qualified Receivables Transaction (as defined under the
Collateral Trust Agreement) is established) to a Receivables Entity in connection with an asset
securitization involving Receivables including, without limitation, (a) the goods represented by
such Receivable and all goods returned by or reclaimed, repossessed or recovered from the debtor of
such Receivable, (b) all books and records relating such Receivable, (c) rights in and to any
contract or agreement which gives rise to such Receivable, (d) all accounts, instruments, general
intangibles, documents, chattel paper and letter of credit rights related to such Receivable, (e)
all of the collections or payments received and all rights to receive payment and collections on
such Receivable, (f) any rights of stoppage in transit, replevin, and reclamation relating to such
goods or Receivable, (g) rights in and to all security for such goods or the payment of such
Receivable and guaranties thereof, (h) any collections or casualty insurance proceeds or proceeds
from any receivables or other insurance collected or paid on account of such Receivable or any of
the foregoing, and (g) any rights against third parties with respect thereto.

“Receivable” means a right to receive payment arising from a sale or lease of goods (other
than in respect of goods constituting Collateral which are not Inventory) or the performance of
services by a Person pursuant to an arrangement with another Person pursuant to which such other
Person is obligated to pay for such goods or services under terms that permit the purchase of such
goods and services on credit and will include, in any event, any items of property received in
respect of the sale or lease of such goods or services that would be classified as an “account,”
“chattel paper,” “payment intangible” or “instrument” under the UCC.

“Receivables Entity” has the meaning assigned thereto in the Indenture.

“Records” has the meaning assigned thereto in the UCC.

“Related Inventory Rights” means, with respect to any Inventory, any “supporting
obligations” (as defined in the UCC) related thereto, any documents of title for such
Inventory, all Records in respect thereof, any commercial tort claims or other claims and causes of
action to the extent related primarily to such Inventory and any substitutions, replacements,
accessions, products and proceeds thereof, provided that in no event shall Related Inventory Rights
include intellectual property of the Grantors (for the avoidance of doubt, this proviso shall not
prevent the grant of a non-exclusive license in the Intellectual Property of the Grantors).

“Related Receivable Rights” means, with respect to any Receivable, any “supporting
obligations” (as defined in the UCC) related thereto, all Records in respect thereof, any
commercial tort claims or other claims and causes of action to the extent related primarily to such
Receivable and any substitutions,

5

 

replacements, accessions, products and proceeds thereof .

“Secured Debt Default” means an Event of Default, as defined in the Indenture and/or a
Shared Lien Default, as defined in the Collateral Trust Agreement.

“Secured Obligations” means (i) in the case of the Company, its Shared Lien Obligations (as
defined in the Collateral Trust Agreement), and (ii) in the case of each other Grantor, its
Guarantor Obligations.

“Secured Parties” means the holders of the Shared Lien Obligations.

“Securities” means any stock, shares, partnership interests, voting trust certificates,
certificates of interest or participation in any profit-sharing agreement or arrangement, options,
warrants, bonds, debentures, notes, or other evidences of indebtedness, secured or unsecured,
convertible, subordinated or otherwise, or in general any instruments commonly known as
“securities” or any certificates of interest, shares or participations in temporary or interim
certificates for the purchase or acquisition of, or any right to subscribe to, purchase or acquire,
any of the foregoing.

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

“Trademark Licenses” means any and all agreements, licenses and covenants providing for the
granting of any right in or to any Trademark or otherwise providing for a covenant not to sue for
infringement dilution or other violation of any Trademark or permitting co-existence with respect
to a Trademark (whether such Grantor is licensee or licensor thereunder) including, without
limitation, each agreement required to be listed in Schedule 5.2(II) under the heading
“Trademark Licenses” (as such schedule may be amended or supplemented from time to time in
accordance with the terms hereof).

“Trademarks” means all United States, and foreign trademarks, trade names, trade dress,
corporate names, company names, business names, fictitious business names, Internet domain names,
service marks, certification marks, collective marks, logos, other source or business identifiers,
designs and general intangibles of a like nature, whether or not registered, and with respect to
any and all of the foregoing: (i) all registrations and applications therefor including, without
limitation, the registrations and applications required to be listed in Schedule 5.2(II)
under the heading “Trademarks“(as such schedule may be amended or supplemented from time to time in
accordance with the terms hereof), (ii) all extensions or renewals of any of the foregoing, (iii)
all of the goodwill of the business connected with the use of and symbolized by any of the
foregoing, (iv) the right to sue or otherwise recover for any past, present and future
infringement, dilution or other violation of any of the foregoing or for any injury to the related
goodwill, (v) all Proceeds of the foregoing, including, without limitation, license fees,
royalties, income, payments, claims, damages, and proceeds of suit now or hereafter due and/or
payable with respect thereto, and (vi) all other rights of any kind accruing thereunder or
pertaining thereto throughout the world.

“Trade Secret Licenses” means any and all agreements providing for the granting of any
right in or to Trade Secrets (whether such Grantor is licensee or licensor thereunder) including,
without limitation, each agreement required to be listed in Schedule 5.2(II) under the
heading “Trade Secret Licenses” (as such schedule may be amended or supplemented from time to time
in accordance with the terms hereof).

“Trade Secrets” means all trade secrets and all other confidential or proprietary
information and know-how whether or not the foregoing has been reduced to a writing or other
tangible form, including all documents and things embodying, incorporating, or referring in any way
to the foregoing, and with respect to any and all of the foregoing: (i) the right to sue or
otherwise recover for any past, present and future misappropriation or other violation thereof,
(ii) all Proceeds of the foregoing, including, without

6

 

limitation, license fees, royalties, income, payments, claims, damages, and proceeds of suit now or hereafter due and/or payable with respect
thereto; and (iii) all other rights of any kind accruing thereunder or pertaining thereto
throughout the world.

“UCC” means the Uniform Commercial Code as in effect from time to time in the State of New
York; provided, however, that in the event that, by reason of mandatory provisions of law, any or
all of the perfection or priority of, or remedies with respect to, any Collateral is governed by
the Uniform Commercial Code as enacted and in effect in a jurisdiction other than the State of New
York, the term “UCC” means the Uniform Commercial Code as enacted and in effect in such other
jurisdiction solely for purposes of the provisions hereof relating to such perfection, priority or
remedies.

“United States” means the United States of America.

     1.2 Certain Definitions; Interpretation.

          (a) In this Agreement, the following capitalized terms shall have the meaning given
to them in the UCC (and, if defined in more than one Article of the UCC, shall have the meaning
given in Article 9 thereof): Account, Account Debtor, As-Extracted Collateral, Bank, Certificated
Security, Chattel Paper, Consignee, Consignment, Consignor, Commercial Tort Claims, Commodity
Account, Commodity Contract, Commodity Intermediary, Deposit Account, Document, Entitlement Order,
Electronic Chattel Paper, Equipment, Farm Products, Fixtures, General Intangible, Goods,
Health-Care-Insurance Receivable, Instrument, Inventory, Letter of Credit Right, Manufactured Home,
Money, Payment Intangible, Proceeds, Record, Securities Account, Securities Intermediary, Security
Certificate, Security Entitlement, Supporting Obligations, Tangible Chattel Paper and
Uncertificated Security.

          (b) All other capitalized terms used herein (including the preamble and recitals
hereto) and not otherwise defined herein shall have the meanings ascribed thereto in the Collateral
Trust Agreement. The incorporation by reference of terms defined in the Collateral Trust Agreement
shall survive any termination of the Collateral Trust Agreement until this Agreement is terminated
as provided in Section 11 hereof. Any of the terms defined herein may, unless the context
otherwise requires, be used in the singular or the plural, depending on the reference. References
herein to any Section, Appendix, Schedule or Exhibit shall be to a Section, an Appendix, a Schedule
or an Exhibit, as the case may be, hereof unless otherwise specifically provided. The use herein
of the word “include” or “including”, when following any general statement, term or matter, shall
not be construed to limit such statement, term or matter to the specific items or matters set forth
immediately following such word or to similar items or matters, whether or not non-limiting
language (such as “without limitation” or “but not limited to” or words of similar import) is used
with reference thereto, but rather shall be deemed to refer to all other items or matters that fall
within the broadest possible scope of such general statement, term or matter. The terms lease and
license shall include sub-lease and sub-license, as applicable. If any conflict or inconsistency
exists between this Agreement and the Collateral Trust Agreement, the Collateral Trust
Agreement shall govern. All references herein to provisions of the UCC shall include all
successor provisions under any subsequent version or amendment to any Article of the UCC.

SECTION 2. GRANT OF SECURITY.

     2.1
Grant of Security.
Each Grantor hereby grants to the Collateral Trustee, for
the ratable benefit of the Secured Parties, a security interest in and continuing Lien
on all of such Grantor’s right, title and interest in, to and under all personal
property of such Grantor, subject to the limitations set forth
inSection 2.2,
including, but not

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limited to the following, in each case whether now owned or existing
or hereafter acquired, created or arising in which any Grantor now has or hereafter
acquires an interest and wherever located (all of which being hereinafter collectively
referred to as the “Collateral”) as collateral security for, the prompt and
complete payment or performance in full when due, whether at stated maturity, by
required prepayment, declaration, acceleration, demand or otherwise (including the
payment of amounts that would become due but for the operation of the automatic stay
under Section 362(a) of the bankruptcy code of the United States (11 U.S.C. and related
provisions) (the “Bankruptcy Code”) (and any successor provision thereof)), of
such Grantor’s Secured Obligations:

          (a) Accounts;

          (b) Chattel Paper;

          (c) Documents;

          (d) Fixtures

          (e) General Intangibles;

          (f) Goods (including, without limitation, Inventory and Equipment);

          (g) Instruments;

          (h) Insurance;

          (i) Intellectual Property;

          (j) Investment Related Property (excluding Deposit Accounts except for the
Collateral Account);

          (k) Letter of Credit Rights;

          (l) Money;

          (m) Commercial Tort Claims now or
hereafter listed on Schedule 5.2(III) (as
amended from time to time in accordance with the terms hereof);

          (n) to the extent not otherwise included above, all other personal property of any
kind and all Collateral Records, Collateral Support and Supporting Obligations relating to any of
the foregoing; and

          (o) to the extent not otherwise included above, all Proceeds, products, accessions,
rents and profits of or in respect of any of the foregoing.

     2.2
Certain Limited Exclusions.
Notwithstanding anything herein to the contrary,
in no event shall the Collateral include or the security interest granted under
Section 2.1 hereof attach to any of the following (collectively, the
“Excluded Property”).

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          (a) any lease, license, contract or agreement to which the Company or any Grantor is
a party, and any of its rights or interest thereunder, if and to the extent, but only to the
extent, that a security interest in such lease, license, contract or agreement is prohibited by or
in violation of:

          (i) any law, rule or regulation applicable to the Company or such Grantor, or

          (ii) a term, provision or condition of any such lease, license, contract or
agreement (unless such law, rule, regulation, term, provision or condition would be rendered
ineffective with respect to the creation of the security interest hereunder pursuant to
Sections 9-406, 9-407, 9-408 or 9-409 of the UCC (or any successor provision or provisions)
of any relevant jurisdiction or any other applicable law (including the Bankruptcy Code) or
principles of equity);

provided, however, that the Collateral shall include (and a security interest shall attach)
immediately at such time as the contractual or legal prohibition shall no longer be applicable and
to the extent severable, shall attach immediately to any portion of such lease, license, contract
or agreement not subject to the prohibitions specified in (i) or (ii) above; provided, further,
that the exclusions referred to in this clause 2.2(a) shall not include any “proceeds” (as
defined in the UCC (or any successor provision or provisions) of any relevant jurisdiction) of any
such lease, license, contract or agreement;

          (b) all:

          (i) Receivables and Related Receivable Rights; and

          (ii) to the extent a Receivable was sold to a Receivables Entity pursuant to
a Qualified Receivables Transaction (as defined in the Indenture) permitted by the terms of
the Indenture and any other Shared Lien Documents, any Qualified Related Receivable Rights
with respect to such Receivable but only to the extent such Qualified Related Receivable
Rights were required to be transferred to the Receivables Entity free and clear of all Liens

          (c) any of:

          (i) the outstanding Capital Stock of any “controlled foreign corporation” (as
defined in the Internal Revenue Code) (a “CFC”) in excess of 65% of the voting power
of all classes of Capital Stock of such CFC entitled to vote; provided that immediately upon
the amendment of the Internal Revenue Code to allow the pledge of a greater percentage of
the voting power of Capital Stock in a CFC without adverse tax consequences, the Collateral
shall include, and the security interest granted by the Company and each Grantor shall
attach to, such greater percentage of Capital Stock of each CFC;

          (ii) the outstanding Capital Stock of a CFC other than a First Tier Foreign
Subsidiary; and

          (iii) the membership interests of Conexant CF LLC, a Delaware limited
liability company;

          (d) any “intent-to-use” application for registration of a Trademark filed pursuant
to Section 1(b) of the Lanham Act, 15 U.S.C. § 1051, prior to the filing of a “Statement of Use”
pursuant to Section 1(d) of the Lanham Act or an “Amendment to Allege Use” pursuant to Section 1(c)
of the Lanham Act with respect thereto, solely to the extent, if any, that, and solely during the
period, if any, in

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which, the grant of a security interest therein would impair the validity or
enforceability of any registration that issues from such intent-to-use application under applicable
federal law;

          (e) the real property owned by the Company and located at 4311-4321 Jamboree Road,
Newport Beach, California 92660 (the “Newport Beach Property”), provided that such property
will no longer constitute Excluded Property at any time on or after January 1, 2011 if prior to
such date such property has not been transferred in a bona fide sale to a third party that is not
an Affiliate of the Company;

          (f) any leasehold interest in real property;

          (g) all cash (other than cash proceeds of the Collateral or other amounts required
to be deposited into the Collateral Account pursuant to Section 6.11 hereof), Deposit
Accounts (other than the Collateral Account) and Securities Accounts;

          (h) any motor vehicles, vessels and aircraft or other property subject to a
certificate of title statute of any jurisdiction; and

          (i) any Capital Stock in any joint venture with a third party that is not an
affiliate to the extent a pledge of such Capital Stock is prohibited by the documents governing
such joint venture.

In the event that the Company or any Grantor enters into any credit facility secured by Inventory
(among other collateral that may secure such credit facility, if any) providing for a commitment to
extend Revolving Credit Debt in an aggregate principal amount of at least $5,000,000 that is
permitted pursuant to the terms of the Indenture and any Shared Lien Documents, the Liens granted
hereby on such Inventory and any Related Inventory Rights will be released on the date the Company
enters into such Revolving Credit Debt facility, and such Inventory and Related Inventory Rights
then owned or later acquired will no longer constitute Collateral. Notwithstanding the foregoing,
the Collateral shall include, and the security interest granted by the Company and each Grantor
shall attach, to such property or asset referred to in clauses (b) through (i) of this
definition to the extent that the Company or any Grantor grants or permits any Lien on such
property or asset to secure any Shared Lien Obligation.

SECTION 3. GRANTORS REMAIN LIABLE

Notwithstanding anything herein to the contrary, (i) each Grantor shall remain liable for all
obligations under the Collateral and nothing contained herein is intended or shall be a delegation
of duties to the Collateral Trustee or any other Secured Party, (ii) each Grantor shall remain
liable under each of the agreements included in the Collateral, including, without limitation, any
agreements relating to Pledged Partnership Interests or Pledged LLC Interests, to perform all of
the obligations undertaken by it thereunder all in accordance with
and pursuant to the terms and provisions thereof and neither the
 Collateral Trustee nor any Secured Party shall have any obligation or liability under any of such
agreements by reason of or arising out of this Agreement or any other document related thereto nor
shall the Collateral Trustee nor any Secured Party have any obligation to make any inquiry as to
the nature or sufficiency of any payment received by it or have any obligation to take any action
to collect or enforce any rights under any agreement included in the Collateral, including, without
limitation, any agreements relating to Pledged Partnership Interests or Pledged LLC Interests, and
(iii) the exercise by the Collateral Trustee of any of its rights hereunder shall not release any
Grantor from any of its duties or obligations under the contracts and agreements included in the
Collateral.

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SECTION 4. CERTAIN PERFECTION REQUIREMENTS

     4.1 Delivery Requirements.

          (a) With respect to any Certificated Securities included in the Collateral, each
Grantor shall deliver to the Collateral Trustee the Security Certificates evidencing such
Certificated Securities duly indorsed by an effective endorsement (within the meaning of Section
8-107 of the UCC), or accompanied by share transfer powers or other instruments of transfer duly
endorsed by such an effective endorsement, in each case, to the Collateral Trustee or in blank. In
addition, each Grantor shall cause any certificates evidencing any Pledged Equity Interests,
including, without limitation, any Pledged Partnership Interests or Pledged LLC Interests, to be
similarly delivered to the Collateral Trustee regardless of whether such Pledged Equity Interests
constitute Certificated Securities.

          (b) With respect to any Instruments or Tangible Chattel Paper included in the
Collateral, each Grantor shall deliver to the Collateral Trustee all such Instruments or Tangible
Chattel Paper to the Collateral Trustee duly indorsed in blank.

     4.2 Control Requirements.

          (a) With respect to the Collateral Account included in the Collateral, each Grantor
shall ensure that the Collateral Trustee has Control thereof. Without limiting the generality of
the foregoing, with respect to the Collateral Account, each Grantor shall cause the depositary
institution maintaining such account to enter into a control agreement substantially in the form of
Exhibit F hereto (or such other agreement in form and substance reasonably satisfactory to
the Collateral Trustee), pursuant to which the Bank shall agree to comply with the Collateral
Trustee’s instructions with respect to disposition of funds in the Collateral Account without
further consent by such Grantor. With respect to any Commodity Accounts or Commodity Contracts,
each Grantor shall cause Control in favor of the Collateral Trustee in a manner reasonably
acceptable to the Collateral Trustee.

          (b) With respect to any Uncertificated Security included in the Collateral, each
Grantor shall cause the issuer of such Uncertificated Security to either (i) register the
Collateral Trustee as the registered owner thereof on the books and records of the issuer or (ii)
execute an agreement substantially in the form of Exhibit B hereto (or such other agreement
in form and substance reasonably satisfactory to the Collateral Trustee), pursuant to which such
issuer agrees to comply with the Collateral Trustee’s instructions with respect to such
Uncertificated Security without further consent by such Grantor.

          (c) With respect to any material Letter of Credit Rights included in the Collateral
(other than any Letter of Credit Rights constituting a Supporting Obligation for a Receivable in
which the Collateral Trustee has a valid and perfected security interest), Grantor shall ensure that
Collateral Trustee has Control thereof by obtaining the written consent of each issuer of each
related letter of credit to the assignment of the proceeds of such letter of credit to the
Collateral Trustee.

          (d) With respect to any Electronic Chattel Paper or “transferable record” (as that
term is defined in Section 201 of the Federal Electronic Signatures in Global and National Commerce
Act or in Section 16 of the Uniform Electronic Transactions Act as in effect in any relevant
jurisdiction) included in the Collateral, Grantor shall ensure that the Collateral Trustee has
Control thereof.

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     4.3 Intellectual Property Recording Requirements.

          (a) In the case of any Collateral (whether now owned or hereafter acquired)
consisting of issued U.S. Patents and applications therefor, each Grantor shall execute and deliver
to the Collateral Trustee Patent Security Agreements in substantially the form of Exhibit D
hereto (or a supplement thereto) covering all such Patents in appropriate form for recordation with
the U.S. Patent and Trademark Office with respect to the security interest of the Collateral
Trustee.

          (b) In the case of any Collateral (whether now owned or hereafter acquired)
consisting of registered U.S. Trademarks and applications therefor, each Grantor shall execute and
deliver to the Collateral Trustee a Trademark Security Agreement in substantially the form of
Exhibit C hereto (or a supplement thereto) covering all such Trademarks in appropriate form
for recordation with the U.S. Patent and Trademark Office with respect to the security interest of
the Collateral Trustee.

          (c) In the case of any Collateral (whether now owned or hereafter acquired)
consisting of registered U.S. Copyrights and exclusive Copyright Licenses in respect of registered
U.S. Copyrights for which any Grantor is the licensee, each Grantor shall (at the time of first
acquiring an interest in such U.S. Copyrights and exclusive Copyright Licenses in respect of
registered U.S. Copyrights for which any Grantor is the licensee) execute and deliver to the
Collateral Trustee a Copyright Security Agreement in substantially the form of Exhibit E
hereto (or a supplement thereto) covering all such Copyrights and Copyright Licenses in appropriate
form for recordation with the U.S. Copyright Office with respect to the security interest of the
Collateral Trustee.

     4.4 Other Actions.

          (a) With respect to any Pledged Partnership Interests and Pledged LLC Interests
included in the Collateral, if the Grantors own less than 100% of the equity interests in any
issuer of such Pledged Partnership Interests or Pledged LLC Interests, Grantors shall use their
commercially reasonable efforts to obtain the consent (substantially in the form of Exhibit G) of
each other holder of partnership interest or limited liability company interests in such issuer to
the security interest of the Collateral Trustee hereunder and during the continuance of a Secured
Debt Default, the transfer of such Pledged Partnership Interests and Pledged LLC Interests to the
Collateral Trustee or its designee, and to the substitution of the Collateral Trustee or its
designee as a partner or member with all the rights and powers related thereto.

          (b) Each Grantor consents to the grant by each other Grantor of a Lien in all
Investment Related Property that constitutes Collateral hereunder to the Collateral Trustee and
without limiting the generality of the foregoing consents to the transfer of any Pledged
Partnership Interest and any Pledged LLC Interest to the Collateral Trustee or its designee if a
Secured Debt Default has occurred and is continuing and to the substitution of the Collateral
Trustee or its designee as a partner in any partnership or as a member in any limited liability
company with all the rights and powers related thereto if a Secured Debt Default has occurred and
is continuing.

     4.5 Timing and Notice.
With respect to any Collateral in existence on the date
hereof, each Grantor shall use commercially reasonable efforts to comply with the
requirements of Section 4 on the date hereof and, should any Grantor be unable
to comply with the requirements of this Section 4 on the date hereof after
employing such commercially reasonable efforts with respect to any Collateral in
existence on the date hereof, such Grantor shall use commercially reasonable efforts
with respect to such Collateral to comply with the requirements of this Section
4 within ninety (90) days of the date hereof. Each Grantor shall promptly inform
the Collateral

12

 

Trustee of its acquisition of any Collateral
for which any action is
required by Section 4 hereof (including, for the avoidance of doubt, the filing
of any applications for, or the issuance or registration of, any Patents, Copyrights or
Trademarks). With respect to any such Collateral hereafter owned or acquired, such
Grantor shall comply with such requirements within 10 (ten) days of Grantor acquiring
rights therein; provided that notwithstanding the 10 (ten) day requirement above, (a)
with respect to Collateral owned by any Grantor that becomes evidenced by an
Instrument, Certificated Security or Chattel Paper with a value in excess of $250,000,
such Grantor shall have 30 (thirty) days to deliver such Instrument, Certificated
Security or Chattel Paper to the Collateral Trustee, (b) with respect to any
Intellectual Property for which a Grantor shall (i) file an application for
registration with the United States Patent and Trademark Office or the United States
Copyright Office, (ii) file a statement of use or any amendment to allege use with
respect to any “intent to use” trademark application or (iii) acquire any patent,
registered trademark, registered copyright or any application for the foregoing, such
Grantor shall report such filing to the Collateral Trustee within thirty (30) days
after the last day of the fiscal quarter in which such filing or acquisition occurs,
and (c) with respect to any after acquired real property acquired by any Grantor after
the Issue Date (as defined in the Indenture), such Grantor shall execute and deliver
such mortgages, deeds of trust, security instruments and other documentation required
by applicable law to vest in the Collateral Trustee a perfect security interest in such
after-acquired real property within ninety (90) days of the acquisition of such
after-acquired real property.

SECTION 5. REPRESENTATIONS AND WARRANTIES. 

Each Grantor hereby represents and warrants, on the date hereof and on the date of Incurrence of
any Shared Lien Obligation that:

     5.1 Grantor Information & Status.

          (a) Schedule 5.1(A) & (B) (as such schedule may be amended or
supplemented from time to time in accordance with the terms hereof) sets forth under the
appropriate headings: (1) the full legal name of such Grantor, (2) all trade names or other names
under which such Grantor currently conducts business, (3) the type of organization of such Grantor,
(4) the jurisdiction of organization of such Grantor, (5) its organizational identification number,
if any, and (6) the jurisdiction where the chief executive office or its sole place of business is
located.

          (b) except as provided on Schedule 5.1(C), it has not changed its name,
jurisdiction of organization, chief executive office or sole place of business (or principal
residence if such Grantor is a natural person) or its corporate structure in any way (e.g., by
merger, consolidation, change in corporate form or otherwise) and has not done business under any other name, in each case, within the
past five (5) years;

          (c) except as provided in Schedule 5.1(D), it has not within the last five
(5) years become bound (whether as a result of merger or otherwise) as debtor under a security
agreement entered into by another Person, which has not heretofore been terminated;

13

 

          (d) such Grantor has been duly organized and is validly existing as an entity of the
type as set forth opposite such Grantor’s name on Schedule 5.1(A) solely under the laws of
the jurisdiction as set forth opposite such Grantor’s name on Schedule 5.1(A) and remains
duly existing as such. Such Grantor has not filed any certificates of dissolution or liquidation,
any certificates of domestication, transfer or continuance in any other jurisdiction; and

          (e) no Grantor is a “transmitting utility” (as defined in Section 9-102(a)(80) of
the UCC).

          (f) the execution, delivery and performance by such Grantor of this Agreement are
within such Grantor’s corporate or other powers, have been duly authorized by all necessary
corporate or other organizational action, and do not and will not (a) violate the terms of such
Grantor’s organizational documents, (b) violate or result in any breach of, or the creation of any
Lien under (other than Liens created by this Agreement and other Permitted Liens), or require any
payment to be made under (i) any contractual obligation to which such Grantor is a party or which
is binding upon such Grantor or the properties of such Grantor or any of its Subsidiaries or (ii)
any order, injunction, writ or decree of any Governmental Authority or any arbitral award to which
such Grantor or its property is subject; or (c) violate any law; except with respect to any
violation or breach (but not creation of Liens) referred to in clause (b) and (c) above, to the
extent that such violation or breach could not reasonably be expected to have a Material Adverse
Effect; and

          (g) this Agreement has been duly executed and delivered by each Grantor, and
constitutes a legal, valid and binding obligation of such Grantor, enforceable against such Grantor
in accordance with its terms, subject to the effects of bankruptcy, insolvency, fraudulent
conveyance, reorganization, moratorium and other similar laws relating to or affecting creditors’
rights generally, general equitable principles (whether considered in a proceeding in equity or at
law) and an implied covenant of good faith and fair dealing.

     5.2 Collateral Identification, Special Collateral.

          (a) Schedule 5.2 (as such schedule may be amended or supplemented from time
to time in accordance with the terms hereof) sets forth under the appropriate headings all of such
Grantor’s: (1) Pledged Equity Interests, (2) Pledged Debt, (3) Commodity Contracts and Commodity
Accounts, (4) United States and foreign registrations and issuances of and applications for
Patents, Trademarks, and Copyrights owned by each Grantor, (5) Patent Licenses, Trademark Licenses,
Trade Secret Licenses and Copyright Licenses, in each case that constitute Material Intellectual
Property, (6) Commercial Tort Claims, (7) Letter of Credit Rights for letters of credit, (8) the
name and address of any warehouseman, bailee or other third party in possession of any Inventory,
Equipment and other tangible personal property. Each Grantor shall supplement such schedules as
necessary to ensure that such schedules are accurate on the date of incurrence of any Shared Lien
Debt, unless waived by the Collateral Trustee in accordance with the terms of the Collateral Trust
Agreement;

          (b) none of the Collateral constitutes, or is the Proceeds of, (1) Farm Products,
(2) As-Extracted Collateral, (3) Manufactured Homes, (4) Health-Care-Insurance Receivables; (5)
timber to be cut, or (6) aircraft, aircraft engines, satellites, ships or railroad rolling stock. No
material portion of the collateral consists of motor vehicles or other goods subject to a
certificate of title statute of any jurisdiction; and

          (c) all written information supplied by any Grantor with respect to any of the
Collateral (in each case taken as a whole with respect to any particular Collateral) is accurate
and complete in all material respects.

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     5.3 Ownership of Collateral and Absence of Other Liens.

          (a) except as set forth on Schedule 5.3(a), it owns the Collateral purported
to be owned by it or otherwise has the rights it purports to have in each item of Collateral and,
as to all Collateral whether now existing or hereafter acquired, developed or created (including by
way of lease or license), will continue to own or have such rights in each item of the Collateral
(except as otherwise permitted by the Shared Lien Documents), in each case free and clear of any
and all Liens, rights or claims of all other Persons, including, without limitation, (i) Liens
arising as a result of such Grantor becoming bound (as a result of merger or otherwise) as debtor
under a security agreement entered into by another Person other than any Permitted Liens and (ii)
the Lien granted to the Collateral Trustee pursuant to this Agreement; and

          (b) other than any financing statements filed in favor of the Collateral Trustee, no
effective financing statement, fixture filing or other instrument similar in effect under any
applicable law covering all or any part of the Collateral is on file in any filing or recording
office except for (x) financing statements for which duly authorized proper termination statements
have been delivered to the Collateral Trustee for filing and (y) financing statements filed in
connection with Permitted Liens. Other than the Collateral Trustee and any automatic control in
favor of a Bank or commodity intermediary maintaining a Deposit Account, or Commodity Contract, no
Person is in Control of any Collateral.

     5.4 Status of Security Interest.

          (a) upon the filing by each Grantor of financing statements naming each Grantor as
“debtor” and the Collateral Trustee as “secured party” and describing the Collateral in the filing
offices set forth opposite such Grantor’s name on Schedule 5.4 hereof (as such schedule may
be amended or supplemented from time to time in accordance with the terms hereof), the security
interest of the Collateral Trustee in all Collateral in the United States that can be perfected by
the filing of a financing statement under the UCC as in effect in the relevant jurisdiction will
constitute a valid, perfected, first priority Liens subject in the case of priority only, to any
Permitted Liens with respect to such Collateral. Each agreement purporting to give the Collateral
Trustee Control over any Collateral is effective to establish the Collateral Trustee’s Control of
the Collateral subject thereto;

          (b) to the extent perfection or priority of the security interest therein is not
subject to Article 9 of the UCC, upon recordation by each Grantor of the security interests granted
hereunder in Patents, Trademarks, Copyrights and exclusive Copyright Licenses in the applicable
intellectual property registries, including but not limited to the United States Patent and
Trademark Office and the United States Copyright Office, the security interests granted to the
Collateral Trustee hereunder shall constitute valid, perfected, first priority Liens (subject, in
the case of priority only, to Permitted Liens);

          (c) no authorization, consent, approval or other action by, and no notice to or
filing with, any Governmental Authority or regulatory body or any other Person is required for
either (i) the pledge or grant by any Grantor of the Liens purported to be created in favor of the
Collateral Trustee hereunder or (ii) the exercise by Collateral Trustee of any rights or remedies
in respect of any Collateral (whether specifically granted or created hereunder or created or provided for by applicable
law), except (A) for the filings contemplated by clause (a) above and (B) as may be required, in
connection with the disposition of any Investment Related Property that constitutes Collateral
hereunder, by laws generally affecting the offering and sale of Securities; and

          (d) each Grantor is in compliance with its obligations under Section 4 hereof.

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     5.5 Goods.

          (a) No material portion of any Goods now or hereafter produced by any Grantor and
included in the Collateral have been or will be produced in violation of the requirements of the
Fair Labor Standards Act, as amended, or the rules and regulations promulgated thereunder; and

          (b) other than any Inventory or Equipment in transit, all of the Equipment and
Inventory included in the Collateral is located only at the locations specified in Schedule
5.5 (as such schedule may be amended or supplemented from time to time in accordance with the
terms hereof).

     5.6 Pledged Equity Interests, Investment Related Property.

          (a) it is the record and beneficial owner of the Pledged Equity Interests free of
all Liens, rights or claims of other Persons and there are no outstanding warrants, options or
other rights to purchase, or shareholder, voting trust or similar agreements outstanding with
respect to, or property that is convertible into, or that requires the issuance or sale of, any
Pledged Equity Interests. All of the Pledged Equity Interests as to which the Company or a
Restricted Subsidiary is the issuer have been duly and validly issued and are fully paid and
nonassessable;

          (b) no consent of any Person including any other general or limited partner, any
other member of a limited liability company, any other shareholder or any other trust beneficiary
is necessary or desirable in connection with the creation, perfection or first priority status of
the security interest of the Collateral Trustee in any Pledged Equity Interests or the exercise by
the Collateral Trustee of the voting or other rights provided for in this Agreement or the exercise
of remedies in respect thereof except such as have been obtained; and

          (c) all of the Pledged LLC Interests and Pledged Partnership Interests are or
represent interests that by their terms provide that they are securities governed by the UCC of an
applicable jurisdiction.

     5.7 Intellectual Property.

          (a) Except as set forth on Schedule 5.3, (i) it is the sole and exclusive
owner of the entire right, title, and interest in and to the Intellectual Property listed on
Schedule 5.2(II)(A), (C) and (E) (as such schedule may be amended or supplemented
from time to time in accordance with the terms hereof), and, (ii) to such Grantor’s knowledge,
except as would not be expected to result in a Material Adverse Effect, it owns or has the valid
right to use and, where Grantor does so, sublicense others to use, all other Intellectual Property
used in or necessary to conduct its business;

          (b) no Copyright registrations, or applications therefore, are Material Intellectual
Property;

          (c) all Material Intellectual Property of such Grantor is, to such Grantor’s
knowledge, subsisting and has not been adjudged invalid or unenforceable, in whole or in part, nor,
in the case of Patents, is any of the Material Intellectual Property the subject of a reexamination
proceeding, and, except in the exercise of such Grantor’s reasonable business judgment, each
Grantor has performed all acts and has paid all renewal, maintenance, and other fees and taxes
required to maintain each and every registration and application of Copyrights, Patents and
Trademarks in full force and effect;

          (d) to such Grantor’s actual knowledge, all of its registered or issued Material
Intellectual Property is valid and enforceable; no holding, decision, ruling, or judgment has been
rendered

16

 

in any action or proceeding before any court or administrative authority adversely
affecting the validity, enforceability, or scope of, or such Grantor’s right to register, own or
use, any Material Intellectual Property, and no such action or proceeding is pending or, to the
best of such Grantor’s knowledge, threatened in writing;

          (e) except as set forth on Schedule 5.3, all registrations, issuances and
applications for Copyrights, Patents and Trademarks of such Grantor are standing in the name of
such Grantor, and none of the Trademarks, Patents, Copyrights or Trade Secrets owned by such
Grantor has been licensed by such Grantor to any Affiliate or third party where such license (i)
restricts such Grantor’s use or exploitation of any such Intellectual Property in the operation of
its business in any material respect or (ii) is material to the business of such Grantor, except as
disclosed in Schedule 5.2(II) (as such schedule may be amended or supplemented from time to
time in accordance with the terms hereof);

          (f) each Grantor, in the exercise of its reasonable business judgment, has used
appropriate statutory notices of registration in connection with its use of registered Trademarks
to the extent constituting Material Intellectual Property;

          (g) to the extent such Grantor has not engaged in patent marking practices in
connection with its use of Patents, such decision has been made in such Grantor’s reasonable
business judgment and is consistent with industry standards, except as would not be expected to
result in a Material Adverse Effect;

          (h) each Grantor has taken commercially reasonable steps to protect the
confidentiality of its Trade Secrets constituting Material Intellectual Property in accordance with
industry standards;

          (i) each Grantor controls the nature and quality in accordance with industry
standards of all products sold and all services rendered under or in connection with all Trademarks
of such Grantor, in each case consistent with industry standards, and has taken all action which,
in its reasonable business judgment, is necessary or desirable to insure that all licensees of the
Trademarks owned by such Grantor comply with such Grantor’s standards of quality, in each case, to
the extent such Trademarks constitute Material Intellectual Property;

          (j) except as set forth on Schedule 5.3, (i) to such Grantor’s knowledge,
the conduct of such Grantor’s business does not infringe, misappropriate, dilute or otherwise
violate any Intellectual Property right of any other Person; (ii) no claim has been made in writing
that the use of any Intellectual Property owned or used by such Grantor (or any of its respective
licensees) infringes, misappropriates, dilutes or otherwise violates the asserted rights of any
other Person; and (iii) to such Grantor’s knowledge, no demand that such Grantor enter into a
license or co-existence agreement has been made but not resolved, in each case except as would not
be expected to result in a Material Adverse Effect;

          (k) except as set forth on Schedule 5.3, to the best of such Grantor’s
knowledge, no Person is infringing, misappropriating, diluting or otherwise violating any rights in
any Material Intellectual Property owned, licensed or used by such Grantor, or any of its respective
licensees, except as would not be expected to result in a Material Adverse Effect; and

          (l) except as set forth on Schedule 5.3, no settlement or consents,
covenants not to sue, co-existence agreements, non-assertion assurances, or releases have been
entered into by such Grantor or bind such Grantor in a manner that could adversely affect such
Grantor’s rights to own, license or use any Material Intellectual Property.

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     5.8 Miscellaneous. No material contract prohibits assignment or requires consent
of or notice to any Person in connection with the assignment to the Collateral Trustee
hereunder, except such as has been given or made.

SECTION 6. COVENANTS AND AGREEMENTS.

Each Grantor hereby covenants and agrees that:

     6.1 Grantor Information & Status.  Without limiting any prohibitions or
restrictions on mergers or other transactions set forth in the Shared Lien Documents,
it shall not change such Grantor’s name, identity, corporate structure (e.g. by merger,
consolidation, change in corporate form or otherwise), sole place of business, chief
executive office, type of organization or jurisdiction of organization or establish any
trade names unless it shall have (a) notified the Collateral Trustee in writing at
least fifteen (15) days prior to any such change or establishment, identifying such new
proposed name, identity, corporate structure, sole place of business, chief executive
office, jurisdiction of organization or trade name and providing such other information
in connection therewith as the Collateral Trustee may reasonably request and (b) taken
all actions necessary or to maintain the continuous validity, perfection and the same
or better priority of the Collateral Trustee’s security interest in the Collateral
granted or intended to be granted and agreed to hereby, which shall include, without
limitation, executing and delivering to the Collateral Trustee a completed Pledge
Supplement together with all Supplements to Schedules thereto, substantially in the
form of Exhibit A attached hereto, confirming the grant of the security
interest hereunder.

     6.2 Collateral Identification; Special Collateral.

            (a) In the event that it hereafter acquires any Collateral of a type described in
Section 5.2(b) hereof, it shall promptly notify there Collateral Trustee thereof in writing
and take such actions and execute such documents and make such filings all at Grantor’s expense as
the Collateral Trustee may reasonably request in order to ensure that the Collateral Trustee has a
valid, perfected, first priority security interest in such Collateral, subject in the case of
priority only, to any Permitted Liens. Notwithstanding the foregoing, no Grantor shall be required
to notify the Collateral Trustee or take any such action unless such Collateral is of a material
value or is material to such Grantor’s business.

             (b) In the event that it hereafter acquires or has any Commercial Tort Claim, it
shall deliver to the Collateral Trustee a completed Pledge Supplement, substantially in the form of
Exhibit A attached hereto, together with all Supplements to Schedules thereto, identifying
such new Commercial Tort Claims.

     6.3 Ownership of Collateral and Absence of Other Liens.

             (a) Except for the security interest created by this Agreement or otherwise in favor
of Collateral Trustee, it shall not create or suffer to exist any Lien upon or with respect to any
of the Collateral, other than Permitted Liens, and such Grantor shall defend the Collateral against
all Persons at any time claiming any interest therein;

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          (b) Upon such Grantor or any officer of such Grantor obtaining knowledge thereof, it
shall promptly notify the Collateral Trustee in writing of any event that occurs with respect to
the Collateral that may have a Material Adverse Effect on the value of the Collateral or any
material portion thereof, the ability of any Grantor or the Collateral Trustee to dispose of the
Collateral or any material portion thereof, or the rights and remedies of the Collateral Trustee in
relation thereto, including, without limitation, the levy of any legal process against the
Collateral or any portion thereof; and

          (c) Each Grantor shall not sell, transfer or assign (by operation of law or
otherwise) or exclusively license to another Person any Collateral except as otherwise permitted or
not prohibited by the Shared Lien Documents.

      6.4

Status of Security Interest.  Subject to each Grantor’s obligations under
Section 4 hereof and the limitations set forth in the following sentence, each
Grantor shall maintain the security interest of the Collateral Trustee hereunder in all
Collateral as valid, perfected, first priority Liens (subject, in the case of priority
only, to Permitted Liens). Notwithstanding the foregoing, no Grantor shall be required
to take any action to maintain the security interest of the Collateral Trustee
hereunder, except as and to the extent specified in Section 4 and
Section 7.2 hereof. Neither the Company nor any Grantor will take or omit to
take any action that would materially adversely affect or impair the Liens in favor of
the Collateral Trustee with respect to the Collateral. Neither the Company nor any
Grantor shall grant to any Person, or permit any Person to retain (other than the
Collateral Trustee, the Company or the Grantors), any interest whatsoever in the
Collateral, other than Permitted Liens.

     6.5 Goods.

          (a) Each Grantor shall not deliver any Document evidencing any Equipment and
Inventory to any Person other than the issuer of such Document to claim the Goods evidenced
therefor or the Collateral Trustee;

          (b) If any Equipment or Inventory is in possession or control of any warehouseman,
bailee or other third party (other than a Consignee under a Consignment for which such Grantor is
the Consignor), each Grantor shall use commercially reasonable efforts to notify the third party of
the Collateral Trustee’s security interest and obtaining an acknowledgment from the third party
that it is holding the Equipment and Inventory for the benefit of the Collateral Trustee and will
permit the Collateral Trustee or its designee to have access to Equipment or Inventory for purposes
of inspecting such Collateral or, following the occurrence and during the continuance of a Secured
Debt Default, to remove same from such premises if the Collateral Trustee so elects; and with
respect to any Goods subject to a Consignment for which such Grantor is the Consignor, Grantor
shall file appropriate financing statements against the Consignee and take such other action as may
be reasonably necessary to ensure that the Collateral Trustee has a first priority perfected
security interest in such Goods.

          (c) Each Grantor shall keep the Equipment, Inventory and any Documents evidencing
any Equipment and Inventory in the locations specified on Schedule 5.5 (as such schedule
may be amended or supplemented from time to time in accordance with the terms hereof) unless it
shall have (a) notified the Collateral Trustee in writing, by executing and delivering to the
Collateral Trustee a completed Pledge Supplement together with all Supplements to Schedules
thereto, at least fifteen (15) days prior to any change in locations, identifying such new
locations and providing such other information in connection therewith as the Collateral Trustee
may reasonably request in accordance with the terms of the Collateral Trust Agreement;

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     6.6 Pledged Equity Interests, Investment Related Property.

          (a) Except as provided in the next sentence, and subject to Section 6.4, in
the event such Grantor receives any dividends, interest or distributions on any Pledged Equity
Interest or other Investment Related Property that constitutes Collateral hereunder, upon the
merger, consolidation, liquidation or dissolution of any issuer of any Pledged Equity Interest or
Investment Related Property that constitutes Collateral hereunder, then (a) such dividends,
interest or distributions and securities or other property shall be included in the definition of
Collateral without further action and (b) such Grantor shall take all steps, if any, that are
necessary or advisable to ensure the validity, perfection, priority and, if applicable, control of
the Collateral Trustee over such Investment Related Property (including, without limitation,
delivery thereof to the Collateral Trustee) and pending any such action such Grantor shall be
deemed to hold such dividends, interest, distributions, securities or other property in trust for
the benefit of the Collateral Trustee and shall segregate such dividends, distributions, Securities
or other property that constitutes Collateral from all other property of such Grantor.
Notwithstanding the foregoing, so long as no Secured Debt Default shall have occurred and be
continuing, Grantor may retain all ordinary cash dividends and distributions paid in the normal
course of the business of the issuer and consistent with the past practice of the issuer and all
scheduled payments of principal and interest.

          (b) Voting.

          (i) So long as no Secured Debt of Default shall have occurred and be
continuing, each Grantor shall be entitled to exercise or refrain from exercising any and
all voting and other consensual rights pertaining to the Investment Related Property that
constitutes Collateral hereunder or any part thereof for any purpose;

          (ii) Upon the occurrence and during the continuation of a Secured Debt
Default and upon written notice from the Collateral Trustee to such Grantor of the
Collateral Trustee’s intention to exercise such rights:

          (1) all rights of each Grantor to exercise or refrain from exercising the
voting and other consensual rights which it would otherwise be entitled to exercise
pursuant hereto shall cease and all such rights shall thereupon become vested in the
Collateral Trustee who shall thereupon have the sole right to exercise such voting
and other consensual rights; and

          (2) in order to permit the Collateral Trustee to exercise the voting and other
consensual rights which it may be entitled to exercise pursuant hereto and to
receive all dividends and other distributions which it may be entitled to receive
hereunder: (1) each Grantor shall promptly execute and deliver (or cause to be
executed and delivered) to the Collateral Trustee all proxies, dividend payment
orders and other instruments as the Collateral Trustee may from time to time
reasonably request and (2) each Grantor acknowledges that the Collateral Trustee may utilize the power of
attorney set forth in Section 8.1.

          (c) Except as expressly permitted by the Shared Lien Documents, without the prior
written consent of the Collateral Trustee given in accordance with the terms of the Collateral
Agreement, it shall not vote to enable or take any other action to: (i) amend or terminate any
partnership agreement, limited liability company agreement, certificate of incorporation, by-laws
or other organizational documents in any way that materially changes the rights of such Grantor
with respect to any Investment Related Property that is issued by a Controlled Issuer or adversely
affects the validity, perfection or priority of the Collateral Trustee’s security interest, (ii)
permit any issuer that is a Controlled Issuer of any

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Pledged Equity Interest to issue any additional stock, partnership interests, limited liability company interests or other equity
interests of any nature or to issue securities convertible into or granting the right of purchase
or exchange for any stock or other equity interest of any nature of such issuer, or (iii) other
than as permitted under the Shared Lien Documents, permit any issuer that is a Controlled Issuer of
any Pledged Equity Interest to dispose of all or a material portion of their assets, cause any
issuer of any Pledged Partnership Interests or Pledged LLC Interests of a Controlled Issuer which
are not securities (for purposes of the UCC) on the date hereof to elect or otherwise take any
action to cause such Pledged Partnership Interests or Pledged LLC Interests of a Controlled Issuer
to be treated as securities for purposes of the UCC; provided, however, notwithstanding the
foregoing, if any issuer of any Pledged Partnership Interests or Pledged LLC Interests takes any
such action in violation of the foregoing in this clause (e), such Grantor shall promptly notify
the Collateral Trustee in writing of any such election or action and, in such event, shall take all
steps necessary or advisable to establish the Collateral Trustee’s “control” thereof; and

          (d) Except as expressly permitted by the Shared Lien Documents, without the prior
written consent of the Collateral Trustee given in accordance with the terms of the Collateral
Trust Agreement, it shall not permit any issuer of any Pledged Equity Interest issued by a
Controlled Issuer to merge or consolidate unless (i) such issuer creates a security interest that
is perfected by a filed financing statement (that is not effective solely under section 9-508 of
the UCC) in collateral in which such new debtor has or acquires rights, (ii) all the outstanding
Capital Stock or other equity interests of the surviving or resulting corporation, limited
liability company, partnership or other entity is, upon such merger or consolidation, pledged
hereunder and no cash, securities or other property is distributed in respect of the outstanding
equity interests of any other constituent Grantor; provided that if the surviving or resulting
Grantors upon any such merger or consolidation involving an issuer which is a Controlled Foreign
Corporation, then such Grantor shall only be required to pledge equity interests in accordance with
Section 2.2 and (iii) Grantor promptly complies with the delivery and control requirements
of Section 4 hereof.

     6.7 Intellectual Property.

          (a) It shall not knowingly, except in its reasonable business judgment, do any act
or omit to do any act whereby any of the Material Intellectual Property may become prematurely
abandoned, canceled, dedicated to the public, forfeited, unenforceable or otherwise impaired, or
which would adversely affect the validity, grant, or enforceability of the security interest
granted therein;

          (b) It shall not, with respect to any Trademarks constituting Material Intellectual
Property, cease the use of any of such Trademarks, except in such Grantor’s reasonable business
judgment, or fail to maintain the level of the quality of products sold and services rendered under
any of such Trademark at a level at least substantially consistent with the quality of such
products and services as of the date hereof, and such Grantor shall take all steps, in the exercise
of its reasonable business judgment, necessary or desirable to ensure that licensees of such Trademarks use such
consistent standards of quality;

          (c) It shall notify the Collateral Trustee within 30 days after the last day of the
fiscal quarter in which such event occurs, if it knows or has reason to know that any item of
Material Intellectual Property may become (i) abandoned or dedicated to the public or placed in the
public domain, (ii) invalid or unenforceable, (iii) subject to any adverse determination or
development regarding such Grantor’s ownership, registration or use or the validity or
enforceability of such item of Intellectual Property (including the institution of, or any adverse
development with respect to, any action or proceeding in the United States Patent and Trademark
Office, the United States Copyright Office, any

21

 

state registry, any foreign counterpart of the foregoing, or any court) or (iv) the subject of any reversion or termination rights;

          (d) It shall, in the exercise of its reasonable business judgment, take all
reasonable steps, including in any proceeding before the United States Patent and Trademark Office,
the United States Copyright Office, any state registry or any foreign counterpart of the foregoing,
to pursue any application and maintain any registration or issuance of each Trademark, Patent, and
Copyright owned by any Grantor and constituting Material Intellectual Property;

          (e) It shall use best efforts so as not to permit the inclusion in any contract to
which it hereafter becomes a party of any provision that could or may in any way materially impair
or prevent the creation of a security interest in, or the assignment of, such Grantor’s rights and
interests in any property included within the definitions of any Material Intellectual Property
acquired under such contracts;

          (f) In the event that any Material Intellectual Property owned by or exclusively
licensed to any Grantor is infringed, misappropriated, diluted or otherwise violated by a third
party, such Grantor shall take such actions as such Grantor shall reasonably deem appropriate under
the circumstances to protect its business, including to protect its rights in such Material
Intellectual Property, which may include, among other things, taking no action or the initiation of
a suit for injunctive relief where appropriate and to recover damages;

          (g) It shall take all commercially reasonable steps necessary to protect the secrecy
of all Trade Secrets, which may include, among other things, entering into confidentiality
agreements with employees and consultants and labeling and restricting access to secret information
and documents;

          (h) It shall, in the exercise of its reasonable business judgment consistent with
current standard industry practice, use (or not use) statutory notice in connection with its use of
any of the Material Intellectual Property, except as would not be expected to have a material
adverse effect on the value of the Patents comprising the Material Intellectual Property, taken as
a whole; and

          (i) It shall continue to collect, at its own expense, all amounts due or to become
due to such Grantor in respect of the Material Intellectual Property or any portion thereof. In
connection with such collections, such Grantor may take (and, at the Collateral Trustee’s
reasonable direction, shall take) such action as such Grantor may deem reasonably necessary or
advisable to enforce collection of such amounts. Notwithstanding the foregoing, the Collateral
Trustee shall have the right at any time, to notify, or require any Grantor to notify, any obligors
with respect to any such amounts of the existence of the security interest created hereby.

     6.8 Maintenance of Collateral. Each Grantor shall maintain the Collateral in good,
safe and insurable operating order, condition and repair and shall do all other acts as
may be reasonably necessary or appropriate to maintain and preserve the value of the
Collateral. The Company and each Grantor shall pay all real estate and other taxes,
and shall maintain in full force and effect all material permits. The Company and
each Grantor shall provide to the Collateral Trustee evidence of such payment upon
request. The Company and each Grantor shall main such commercially reasonable
insurance coverage, and shall provide to the Collateral Trustee evidence of such
coverage upon request.

     6.9 Certain Proceeds. Proceeds from the destruction or condemnation of the
Collateral or from eminent domain proceedings shall be deposited into the Collateral
Account,

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to be invested in Additional Assets (as defined in the Indenture), which may
include the performance to completion of rebuilding or restoration to a wholly operable
state and a value and utility no less than that prior to the event of destruction or
condemnation (such rebuilding or restoration, a “Restoration”) of the affected
Collateral. Any remaining proceeds shall then be applied in accordance with Section 3.4
of the Collateral Trust Agreement.

     6.10 After-Acquired Property. 
Upon the acquisition , development or creation by the
Company or any Grantor after the Issue Date (as defined in the Indenture) of (1) any
assets, including, but not limited to, any after-acquired real property (other than
leased real property) or any equipment or fixtures that constitute accretions,
additions or technological upgrades to the equipment or fixtures that form part of the
Collateral or (2) any Additional Assets (other than Excluded Assets) out of the Net
Cash Proceeds (as defined in the Indenture) in compliance with the covenant described
in the Indenture and any relevant Shared Lien Documents, the Company or such Grantor
shall execute and deliver such mortgages, deeds of trust, security instruments,
financing statements, certificates and opinions of counsel as are required under the
terms of the Indenture and the other Shared Lien Documents and as may be necessary or
required by applicable law to vest in the Collateral Trustee a perfected security
interest, subject only to Permitted Liens, in such after-acquired property (other than
Excluded Assets) and to have such after-acquired property (other than Excluded Assets)
added to the Collateral, and thereupon all provisions of this Agreement relating to the
Collateral shall be deemed to relate to such after-acquired property to the same extent
and with the same force and effect. For the avoidance of doubt, in the event that the
Newport Beach Property has not been transferred on or prior to January 1, 2011 in a
bona fide sale to a third party that is not an Affiliate of the Company, then such
Newport Beach Property shall constitute after-acquired real property hereunder as if it
was acquired on January 1, 2011. Furthermore, the Company and each Grantor shall
comply with any other provisions set forth in the Indenture or any other Shared Lien
Document with respect to the after-acquired property.

     6.11 Collateral Account. Each Grantor shall cause to be deposited into the
Collateral Account funds as, when and to the extent contemplated by the Indenture and
any Shared Lien Documents.

SECTION 7. RIGHT OF INSPECTION AND FURTHER ASSURANCES; ADDITIONAL GRANTORS.

     7.1 Right of Inspection. The Collateral Trustee shall at all times have access and
inspection rights with respect to the Grantors and the Collateral as provided for in
the Collateral Trust Agreement.

	 
	 	7.2	 	Further Assurances.

          (a) Subject to Section 6.4, each Grantor agrees that from time to time, at
the expense of such Grantor, that it shall promptly execute and deliver all further instruments and
documents (including preparing and making all necessary filings to perfect the security interest
granted to the Collateral Trustee herein), and take all further action, that may be reasonably
necessary or required by

23

 

applicable law in order to create and/or maintain the validity, perfection
or priority of and protect any security interest granted or purported to be granted hereby or to
enable the Collateral Trustee to exercise and enforce its rights and remedies hereunder with
respect to any Collateral. The Company shall, and shall cause each Grantor to, at its sole cost
and expense, execute and deliver all such agreements and instruments as necessary or required by
applicable law to more fully or accurately describe the assets and property intended to be
Collateral or the obligations intended to be secured hereby. Without limiting the generality of
the foregoing, each Grantor shall:

          (i) file (or authorize the filing of) such financing or continuation
statements, or amendments thereto, record security interests in Intellectual Property and
execute and deliver such other agreements, instruments, endorsements, powers of attorney or
notices, as may be necessary or required by applicable law in order to effect, reflect,
perfect and preserve the security interests granted or purported to be granted hereby;

          (ii) take all actions necessary to ensure the recordation of appropriate
evidence of the Liens and security interest granted hereunder in the Intellectual Property
with any intellectual property registry in which said Intellectual Property is registered or
issued or in which an application for registration or issuance is pending, including,
without limitation, the United States Patent and Trademark Office, the United States
Copyright Office, the various Secretaries of State;

          (iii) at any reasonable time, upon request by the Collateral Trustee, allow
inspection of the Collateral during regular business hours by the Collateral Trustee, or
persons designated by the Collateral Trustee (provided that, unless a Secured Debt Default
has occurred and is continuing, no more than one (1) such inspection shall occur per each
twelve-month period);

          (iv) at the Collateral Trustee’s reasonable request, appear in and defend any
action or proceeding that may affect such Grantor’s title to or the Collateral Trustee’s
security interest in all or any part of the Collateral; and

          (v) furnish the Collateral Trustee with such information regarding the
Collateral, including, without limitation, the location thereof, as the Collateral Trustee
may reasonably request from time to time.

          (b) Notwithstanding any provision of this Agreement, including without limitation,
Section 7.2(a), Grantor shall not be obligated to make any filings or recordings outside of
the United States solely with respect to the perfection or priority of any security interest in any
such Intellectual Property in connection with this Agreement, and Grantor shall not be responsible for any costs
or expenses arising from any such filings, recordings or other actions made outside of the United
States with respect to any such Intellectual Property in connection with this Agreement, or any
costs or expenses arising from the preparation, execution or delivery or any instruments or
documents relating thereto.

          (c) Each Grantor hereby authorizes the Collateral Trustee to file a Record or
Records, including, without limitation, financing or continuation statements, Intellectual Property
Security Agreements and amendments and supplements to any of the foregoing, in any jurisdictions
and with any filing offices as may be required by applicable law are necessary to perfect or
otherwise protect the security interest granted to the Collateral Trustee herein. Such financing
statements may describe the Collateral in the same manner as described herein or may contain an
indication or description of collateral that describes such property in any other manner as may be
required by applicable law or is necessary, to ensure the perfection of the security interest in
the Collateral granted to the Collateral Trustee herein,

24

 

including, without limitation, describing
such property as “all assets, whether now owned or hereafter acquired, developed or created” or
words of similar effect. Each Grantor shall furnish to the Collateral Trustee from time to time
statements and schedules further identifying and describing the Collateral and such other reports
in connection with the Collateral as the Collateral Trustee may reasonably request, all in reasonable detail.

               (d) Each Grantor hereby authorizes the Collateral Trustee to modify this Agreement
after obtaining such Grantor’s approval of or signature to such modification by amending
Schedule 5.2 (as such schedule may be amended or supplemented from time to time in
accordance with the terms hereof) to include reference to any right, title or interest in any
existing Intellectual Property or any Intellectual Property acquired or developed by any Grantor
after the execution hereof or to delete any reference to any right, title or interest in any
Intellectual Property in which any Grantor no longer has or claims any right, title or interest.
Notwithstanding anything to the contrary contained herein, the Collateral Trustee shall have no
responsibility for the preparing, recording, filing, re-recording, or re-filing of any financing
statement, continuation statement or other instrument in any public office.

     7.3 Additional Grantors.
 From time to time subsequent to the date hereof,
additional Persons may become parties hereto as additional Grantors (each, an
“Additional Grantor”), by executing a Pledge Supplement. Upon delivery of any
such Pledge Supplement to the Collateral Trustee, notice of which is hereby waived by
Grantors, each Additional Grantor shall be a Grantor and shall be as fully a party
hereto as if the Additional Grantor were an original signatory hereto.

The terms “Material Restricted Subsidiary” and “First Tier Foreign Subsidiary” used in the
following sentence have the meanings given to them in the Indenture. The Company additionally will
execute a Pledge Supplement and take such further actions as are necessary to (A) pledge the
Capital Stock of each Material Restricted Subsidiary (other than any Receivables Entity) and 65% of
each First Tier Foreign Subsidiary (provided that such pledge of the Capital Stock of each First
Tier Foreign Subsidiary shall not require perfection under foreign law) and (B) in each case take
such actions necessary or advisable to grant to the Collateral Trustee a perfected security
interest in any Collateral held by such Material Restricted Subsidiary or such Capital Stock, as
applicable, subject to Permitted Liens.

Each Grantor expressly agrees that its obligations arising hereunder shall not be affected or
diminished by the addition or release of any other Grantor hereunder, nor by any election of
Collateral Trustee not to cause any Subsidiary of the Company to become an Additional Grantor
hereunder. This Agreement shall be fully effective as to any Grantor that is or becomes a party
hereto regardless of whether any other Person becomes or fails to become or ceases to be a Grantor
hereunder.

	 	 	SECTION 8. COLLATERAL TRUSTEE APPOINTED ATTORNEY-IN-FACT.

     8.1 Power of Attorney.

 Until the discharge of Shared Lien Obligations, each
Grantor hereby irrevocably appoints the Collateral Trustee (such appointment being
coupled with an interest) as such Grantor’s attorney-in-fact, with full authority in
the place and stead of such Grantor and in the name of such Grantor, the Collateral
Trustee or otherwise, from time to time in the Collateral Trustee’s discretion to take
any action and to execute any instrument that the Collateral Trustee may, acting in
accordance with the terms of the Collateral Trust Agreement, deem reasonably necessary
or, in the Collateral Trustee’s reasonable judgment, advisable to

25

 

accomplish the purposes of this Agreement, including, without limitation, the following:

               (a) upon the occurrence and during the continuance of any Secured Debt Default, to
obtain and adjust insurance required to be maintained by such Grantor or paid to the Collateral
Trustee pursuant to the Shared Lien Documents or the Collateral Trust Agreement;

               (b) upon the occurrence and during the continuance of any Secured Debt Default, to
ask for, demand, collect, sue for, recover, compound, receive and give acquittance and receipts for
moneys due and to become due under or in respect of any of the Collateral;

               (c) upon the occurrence and during the continuance of any Secured Debt Default, to
receive, endorse and collect any drafts or other instruments, documents and chattel paper in
connection with clause (b) above;

               (d) upon the occurrence and during the continuance of any Secured Debt Default, to
file any claims or take any action or institute any proceedings for the collection of any of the
Collateral or otherwise to enforce the rights of the Collateral Trustee with respect to any of the
Collateral;

               (e) to prepare and file any UCC financing statements against such Grantor as debtor;

               (f) to prepare, sign, and file for recordation in the intellectual property
registry, appropriate evidence of the Lien and security interest granted herein in any Intellectual
Property in the name of such Grantor as debtor;

               (g) upon the occurrence and during the continuance of any Secured Debt Default, to
take or cause to be taken all actions necessary to perform or comply or cause performance or
compliance with the terms of this Agreement, including, without limitation, access to pay or
discharge taxes or Liens (other than Permitted Liens) levied or placed upon or threatened against
the Collateral, the legality or validity thereof and the amounts necessary to discharge the same,
as reasonably determined by the Collateral Trustee, any such payments made by the Collateral
Trustee to become obligations of such Grantor to the Collateral Trustee, due and payable
immediately without demand; and

               (h) upon the occurrence and during the continuance of any Secured Debt Default,
generally to sell, transfer, lease, license, pledge, make any agreement with respect to or
otherwise deal with any of the Collateral as fully and completely as though the Collateral Trustee
were the absolute owner thereof for all purposes, and to do, at the Collateral Trustee’s option and
such Grantor’s expense, at any time or from time to time, all acts and things that the Collateral
Trustee, acting in accordance with the Collateral Trust Agreement, determines are reasonably
necessary to protect, preserve or realize upon the Collateral and the Collateral Trustee’s security
interest therein in order to effect the intent of this Agreement, all as fully and effectively as
such Grantor might do.

	 	8.2	 	No Duty on the Part of Collateral Trustee or Secured Parties.

The powers conferred on the Collateral Trustee hereunder are solely to protect the interests of
the Secured Parties in the Collateral and shall not impose any duty upon the Collateral
Trustee or any other Secured Party to exercise any such powers. The Collateral Trustee
and the other Secured Parties shall be accountable only for amounts that they actually
receive as a result of the exercise of such powers, and neither they nor any of their
officers, directors, employees or agents shall be responsible to any Grantor for any
act or failure to act hereunder, except for their own gross negligence or willful
misconduct.

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SECTION 9. REMEDIES.

          9.1 Generally.

               (a) If any Secured Debt Default shall have occurred and be continuing, the
Collateral Trustee may exercise in respect of the Collateral, in addition to all other rights and
remedies provided for herein or otherwise available to it at law or in equity, all the rights and
remedies of the Collateral Trustee on default under the UCC (whether or not the UCC applies to the
affected Collateral) to collect, enforce or satisfy any Secured Obligations then owing, whether by
acceleration or otherwise, and also may, without limiting the generality of the foregoing, pursue
any of the following separately, successively or simultaneously, in each case without demand of
performance or any other demand, presentment, protest, advertisement or notice of any kind (except
any notice required by law referred to below) to or upon Grantor or any Person (all of which
demands, defenses, advertisements and notices are hereby waived):

               (i) require any Grantor to, and each Grantor hereby agrees that it shall at
its expense and promptly upon request of the Collateral Trustee forthwith, assemble all or
part of the Collateral as directed by the Collateral Trustee, in accordance with the terms
of the Collateral Trust Agreement, and make it available to the Collateral Trustee at a
place to be designated by the Collateral Trustee that is reasonably convenient to both
parties;

               (ii) enter onto the property where any Collateral is located and take
possession thereof with or without judicial process;

               (iii) prior to the disposition of the Collateral, store, process, repair or
recondition the Collateral or otherwise prepare the Collateral for disposition in any manner
to the extent the Collateral Trustee deems appropriate, in accordance with the terms of the
Collateral Trust Agreement; and

               (iv) without notice except as specified below or under the UCC, collect,
receive, appropriate and realize upon the Collateral or any part thereof and/or sell,
assign, lease, license (on an exclusive or nonexclusive basis) or otherwise dispose of the
Collateral or any part thereof in one or more parcels at public or private sale, at any of
the Collateral Trustee’s offices or elsewhere, for cash, on credit or for future delivery,
at such time or times and at such price or prices and upon such other terms as the
Collateral Trustee may deem commercially reasonable.

               (b) The Collateral Trustee or any other Secured Party may be the purchaser of any or
all of the Collateral at any public or private (to the extent to the portion of the Collateral
being privately sold is of a kind that is customarily sold on a recognized market or the subject of
widely distributed standard price quotations) sale in accordance with the UCC and the Collateral
Trustee, as Collateral
Trustee for and representative of the Secured Parties, shall be entitled, for the purpose of
bidding and making settlement or payment of the purchase price for all or any portion of the
Collateral sold at any such sale made in accordance with the UCC, to use and apply any of the
Secured Obligations as a credit on account of the purchase price for any Collateral payable by the
Collateral Trustee at such sale. Each purchaser at any such sale shall hold the property sold
absolutely free from any claim or right on the part of any Grantor, and each Grantor hereby waives
(to the extent permitted by applicable law) all rights of redemption, stay and/or appraisal which
it now has or may at any time in the future have under any rule of law or statute now existing or
hereafter enacted. Each Grantor agrees that, to the extent notice of sale shall be required by
law, at least ten (10) days notice to such Grantor (or such greater minimum amount if prescribed by
applicable law) of the time and place of any public sale or the time after which any private sale
is to be made shall constitute reasonable notification. The Collateral Trustee shall not be
obligated to make any sale of Collateral regardless of notice of sale having been given. The
Collateral Trustee may

27

 

adjourn any public or private sale from time to time by announcement at the
time and place fixed therefor, and such sale may, without further notice, be made at the time and
place to which it was so adjourned. Each Grantor hereby waives any claims against the Collateral
Trustee arising by reason of the fact that the price at which any Collateral may have been sold at
such a private sale was less than the price which might have been obtained at a public sale, even
if the Collateral Trustee accepts the first offer received and does not offer such Collateral to
more than one offeree. If the proceeds of any sale or other disposition of the Collateral are
insufficient to pay all the Secured Obligations, Grantors shall be liable for the deficiency and
the fees of any attorneys employed by the Collateral Trustee to collect such deficiency. Each
Grantor further agrees that a breach of any of the covenants contained in this Section will cause
irreparable injury to the Collateral Trustee, that the Collateral Trustee has no adequate remedy at
law in respect of such breach and, as a consequence, that each and every covenant contained in this
Section shall be specifically enforceable against such Grantor, and such Grantor hereby waives and
agrees not to assert any defenses against an action for specific performance of such covenants
except for a defense that no default has occurred giving rise to the Secured Obligations becoming
due and payable prior to their stated maturities. Nothing in this Section shall in any way limit
the rights of the Collateral Trustee hereunder.

               (c) The Collateral Trustee may sell the Collateral without giving any warranties as
to the Collateral. The Collateral Trustee may specifically disclaim or modify any warranties of
title or the like. This procedure will not be considered to adversely affect the commercial
reasonableness of any sale of the Collateral.

               (d) The Collateral Trustee shall have no obligation to marshal any of the
Collateral.

     9.2 Application of Proceeds. All proceeds received by the Collateral Trustee in
respect of any sale, any collection from, or other realization upon all or any part of
the Collateral shall be applied in full or in part by the Collateral Trustee in
accordance with Section 3.4 of the Collateral Trust
Agreement.

     9.3 Sales on Credit. If Collateral Trustee sells any of the Collateral upon
credit, Grantor will be credited only with payments actually made by purchaser and
received by Collateral Trustee and applied to indebtedness of the purchaser. In the
event the purchaser fails to pay for the Collateral, Collateral Trustee may resell the
Collateral and Grantor shall be credited with proceeds of the
sale.

     9.4 Investment Related Property. Each Grantor recognizes that, by reason of
certain prohibitions contained in the Securities Act and applicable state securities
laws, the Collateral Trustee may be compelled, with respect to any sale of all or any
part of the Investment Related Property conducted without prior registration or
qualification of such Investment Related Property under the Securities Act and/or
such state securities laws, to limit purchasers to those who will agree, among other
things, to acquire the Investment Related Property for their own account, for
investment and not with a view to the distribution or resale thereof. Each Grantor
acknowledges that any such private sale may be at prices and on terms less favorable
than those obtainable through a public sale without such restrictions (including a
public offering made pursuant to a registration statement under the Securities Act)
and, notwithstanding such circumstances, each Grantor agrees that any such private
sale shall be deemed to have been made in a commercially reasonable manner and that
the Collateral Trustee shall have no obligation to engage in public sales and no
obligation to delay the sale of any Investment Related Property for the period of
time necessary to permit the issuer thereof to register it for a form of public sale
requiring registration under the Securities Act or under

28

 

applicable state securities
laws, even if such issuer would, or should, agree to so register it. If the
Collateral Trustee determines to exercise its right to sell any or all of the
Investment Related Property, upon written request, each Grantor shall and shall
cause each issuer of any Pledged Stock to be sold hereunder, each partnership and
each limited liability company from time to time to furnish to the Collateral
Trustee all such information as the Collateral Trustee may request in order to
determine the number and nature of interest, shares or other instruments included in
the Investment Related Property which may be sold by the Collateral Trustee in
exempt transactions under the Securities Act and the rules and regulations of the
Securities and Exchange Commission thereunder, as the same are from time to time in
effect.

     9.5 Grant of Intellectual Property License.
 For the purpose of enabling the
Collateral Trustee, during the continuance of a Secured Debt Default, to exercise
rights and remedies under Section 9 hereof at such time as the Collateral
Trustee shall be lawfully entitled to exercise such rights and remedies, and for no
other purpose, each Grantor hereby grants to the Collateral Trustee, to the extent
assignable, an irrevocable (during the continuance of a Secured Debt Default),
non-exclusive license, subject, in the case of Trademarks, to sufficient rights to
quality control and inspection in favor of such Grantor to avoid the risk of
invalidation of such Trademarks, to use, assign, license or sublicense and otherwise
exploit any of the Intellectual Property now owned or hereafter owned by such Grantor,
wherever the same may be located and including in such license access to all media in
which any of the licensed items may be recorded or stored and to all computer programs
used for the compilation or printout hereof.

	 	9.6	 	Intellectual Property.

               (a) Anything contained herein to the contrary notwithstanding, in addition to the
other rights and remedies provided herein, upon the occurrence and during the continuation of a
Secured Debt Default:

               (i) the Collateral Trustee shall have the right (but not the obligation) to
bring suit or otherwise commence any action or proceeding in the name of any Grantor, the
Collateral Trustee or otherwise, in the Collateral Trustee’s sole discretion, to enforce any
Intellectual Property rights of such Grantor, in which event such Grantor shall, at the
request of the Collateral Trustee, do any and all lawful acts and execute any and all
documents required by the Collateral Trustee in aid of such enforcement, and such Grantor
shall promptly, upon demand, reimburse
and indemnify the Collateral Trustee as provided in Section 12 hereof in
connection with the exercise of its rights under this Section 9.6;

               (ii) upon written demand from the Collateral Trustee, each Grantor shall
grant, assign, convey or otherwise transfer to the Collateral Trustee or such Collateral
Trustee’s designee all of such Grantor’s right, title and interest in and to any
Intellectual Property and shall execute and deliver to the Collateral Trustee such documents
as are necessary or appropriate to carry out the intent and purposes of this Agreement;

               (iii) each Grantor agrees that such an assignment and/or recording shall be
applied to reduce the Secured Obligations outstanding only to the extent that the Collateral
Trustee (or any other Secured Party) receives cash proceeds in respect of the sale of, or
other realization upon, any such Intellectual Property;

29

 

               (iv) within five (5) Business Days after written notice from the Collateral
Trustee, each Grantor shall make available to the Collateral Trustee, to the extent within
such Grantor’s power and authority, such personnel in such Grantor’s employ on the date of
such Secured Debt Default as the Collateral Trustee may reasonably designate, by name, title
or job responsibility, to permit such Grantor to continue, directly or indirectly, to
produce, advertise and sell the products and services sold or delivered by such Grantor
under or in connection with any Trademarks or Trademark Licenses, such persons to be
available to perform their prior functions on the Collateral Trustee’s behalf and to be
compensated by the Collateral Trustee at such Grantor’s expense on a per diem, pro-rata
basis consistent with the salary and benefit structure applicable to each as of the date of
such Secured Debt Default; and

               (v) the Collateral Trustee shall have the right to notify, or require each
Grantor to notify, any obligors with respect to amounts due or to become due to such Grantor
in respect of any Intellectual Property of such Grantor, of the existence of the security
interest created herein, to direct such obligors to make payment of all such amounts
directly to the Collateral Trustee, and, upon such notification and at the expense of such
Grantor, to enforce collection of any such amounts and to adjust, settle or compromise the
amount or payment thereof, in the same manner and to the same extent as such Grantor might
have done;

               (1) all amounts and proceeds (including checks and other instruments) received
by Grantor in respect of amounts due to such Grantor in respect of the Collateral or
any portion thereof shall be received in trust for the benefit of the Collateral
Trustee hereunder, shall be segregated from other funds of such Grantor and shall be
forthwith paid over or delivered to the Collateral Trustee in the same form as so
received (with any necessary endorsement) to be held as cash Collateral and applied
as provided by Section 9.7 hereof; and

               (2) Grantor shall not adjust, settle or compromise the amount or payment of any
such amount or release wholly or partly any obligor with respect thereto or allow
any credit or discount thereon.

               (b) If (i) a Secured Debt Default shall have occurred and, by reason of cure,
waiver, modification, amendment or otherwise, no longer be continuing, (ii) no other Secured Debt
Default shall have occurred and be continuing, (iii) an assignment or other transfer to the
Collateral Trustee of any rights, title and interests in and to any Intellectual Property of such
Grantor shall have been previously made and shall have become absolute and effective, and (iv) the
Secured Obligations shall not have become immediately due and payable, upon the written request of
any Grantor, the Collateral Trustee
shall promptly execute and deliver to such Grantor, at such Grantor’s sole cost and expense,
such assignments or other transfer as may be necessary to reassign to such Grantor any such rights,
title and interests as may have been assigned to the Collateral Trustee as aforesaid, subject to
any disposition thereof that may have been made by the Collateral Trustee; provided, after giving
effect to such reassignment, the Collateral Trustee’s security interest granted pursuant hereto, as
well as all other rights and remedies of the Collateral Trustee granted hereunder, shall continue
to be in full force and effect; and provided further, the rights, title and interests so reassigned
shall be free and clear of any other Liens granted by or on behalf of the Collateral Trustee and
the Secured Parties.

30

 

SECTION 10. COLLATERAL TRUSTEE.

The Collateral Trustee has been appointed to act as Collateral Trustee hereunder by the Secured
Parties. In furtherance of the foregoing provisions of this Section, each Secured Party, by its
acceptance of the benefits hereof, agrees that it shall have no right individually to realize upon
any of the Collateral hereunder, it being understood and agreed by such Secured Party that all
rights and remedies hereunder may be exercised solely by the Collateral Trustee for the benefit of
Secured Parties in accordance with the terms of this Section. Notwithstanding anything herein to
the contrary, the Lien and security interest granted to the Collateral Trustee pursuant to this
Agreement and the exercise of any right or remedy by such Collateral Trustee hereunder are subject
to the terms of the Collateral Trust Agreement.

SECTION 11. CONTINUING SECURITY INTEREST.

This Agreement shall create a continuing security interest in the Collateral and shall remain in
full force and effect until the Discharge of Shared Lien Obligations, be binding upon each Grantor,
its successors and assigns, and inure, together with the rights and remedies of the Collateral
Trustee hereunder, to the benefit of the Collateral Trustee and its successors, transferees and
assigns. To the extent a release of Liens upon all or any portion of the Collateral is expressly
contemplated pursuant to the Collateral Trust Agreement and the relevant release provisions of the
Collateral Trust Agreement have been complied with in respect of such Collateral, then upon the
Collateral Trustee’s execution and delivery of such release in accordance with the terms of the
Collateral Trust Agreement, the security interest granted hereby in such Collateral shall be
released of record and all rights to such Collateral shall revert to the Grantors.

Upon any such termination the Collateral Trustee shall, at the Grantors’ expense, execute and
deliver to the Grantors or otherwise authorize the filing of such documents as the Grantors shall
reasonably request and provide, including financing statement amendments to evidence such
termination, the Liens granted herein shall be deemed to be automatically released and such
property shall automatically revert to the applicable Grantor with no further action on the part of
any Person. The Collateral Trustee shall, at the applicable Grantor’s expense, execute and deliver
or otherwise authorize the filing of such documents as Grantors shall reasonably request and
provide, including financing statement amendments to evidence such release.

SECTION 12. STANDARD OF CARE; COLLATERAL TRUSTEE MAY PERFORM.

The powers conferred on the Collateral Trustee hereunder are solely to protect its interest in the
Collateral and shall not impose any duty upon it to exercise any such powers. Except for the
exercise of reasonable care in the custody of any Collateral in its possession and the accounting
for moneys actually received by it hereunder, and its duty to release Collateral under Section
11 of this Agreement, the Collateral Trustee shall have no duty as to any Collateral or as to
the taking of any necessary steps to preserve rights against prior parties or any other rights
pertaining to any Collateral. Neither the Collateral Trustee nor any of its directors, officers,
employees or agents shall be liable for failure to demand, collect or realize upon all or any part
of the Collateral or for any delay in doing so or shall be under any obligation to sell or
otherwise dispose of any Collateral upon the request of any Grantor or otherwise. If any Grantor
fails to perform any agreement contained herein, the Collateral Trustee may (but without an
obligation to do so) itself perform, or cause performance of, such agreement, and the expenses of
the Collateral Trustee incurred in connection therewith shall be payable by each Grantor under
Section 7.10 of the Collateral Trust

31

 

Agreement. In the performance of its obligations hereunder,
the Collateral Trustee shall be entitled to the same rights, benefits, protections, indemnities and
immunities afforded to it pursuant to the Collateral Trust Agreement.

SECTION 13. MISCELLANEOUS.

Any notice required or permitted to be given under this Agreement shall be given in accordance with
Section 7.7 of the Collateral Trust Agreement. No failure or delay on the part of the Collateral
Trustee in the exercise of any power, right or privilege hereunder or under any other Shared Lien
Document shall impair such power, right or privilege or be construed to be a waiver of any default
or acquiescence therein, nor shall any single or partial exercise of any such power, right or
privilege preclude other or further exercise thereof or of any other power, right or privilege.
All rights and remedies existing under this Agreement and the other Collateral Trust Agreement are
cumulative to, and not exclusive of, any rights or remedies otherwise available. In case any
provision in or obligation under this Agreement shall be invalid, illegal or unenforceable in any
jurisdiction, the validity, legality and enforceability of the remaining provisions or obligations,
or of such provision or obligation in any other jurisdiction, shall not in any way be affected or
impaired thereby. All covenants hereunder shall be given independent effect so that if a
particular action or condition is not permitted by any of such covenants, the fact that it would be
permitted by an exception to, or would otherwise be within the limitations of, another covenant
shall not avoid the occurrence of a Default or a Secured Debt Default if such action is taken or
condition exists. This Agreement shall be binding upon and inure to the benefit of the Collateral
Trustee and the Grantors and their respective successors and assigns. No Grantor shall, without
the prior written consent of the Collateral Trustee given in accordance with the Collateral Trust
Agreement, assign any right, duty or obligation hereunder. This Agreement, the Collateral Trust
Agreement and the other Shared Lien Documents embody the entire agreement and understanding between
the Grantors and the Collateral Trustee and supersede all prior agreements and understandings
between such parties relating to the subject matter hereof and thereof. Accordingly, the
Collateral Trust Agreement may not be contradicted by evidence of prior, contemporaneous or
subsequent oral agreements of the parties. There are no unwritten oral agreements between the
parties. This Agreement may be amended only by a writing signed by all parties hereto including in
the Collateral Trustee acting under the authority of the Collateral Trust Agreement. This
Agreement may be executed in one or more counterparts and by different parties hereto in separate
counterparts, each of which when so executed and delivered shall be deemed an original, but all
such counterparts together shall constitute but one and the same instrument; signature pages may be
detached from multiple separate counterparts and attached to a single counterpart so that all
signature pages are physically attached to the same document. Delivery of an executed signature
page to
this Agreement by facsimile, pdf file or other electronic transmission shall be as effective as
delivery of a manually signed counterpart of this Agreement.

THIS AGREEMENT AND THE RIGHTS AND OBLIGATIONS OF THE PARTIES HEREUNDER AND ALL CLAIMS AND
CONTROVERSIES ARISING OUT OF THE SUBJECT MATTER HEREOF WHETHER SOUNDING IN CONTRACT LAW, TORT LAW
OR OTHERWISE SHALL BE GOVERNED BY, AND SHALL BE CONSTRUED AND ENFORCED IN ACCORDANCE WITH, THE LAWS
OF THE STATE OF NEW YORK, WITHOUT REGARD TO CONFLICTS OF LAW PROVISIONS THAT WOULD RESULT IN THE
APPLICATION OF ANY OTHER LAW (OTHER THAN ANY MANDATORY PROVISIONS OF THE UCC RELATING TO THE LAW
GOVERNING PERFECTION AND THE EFFECT OF PERFECTION OF THE SECURITY INTEREST).

THE PROVISIONS OF THE COLLATERAL TRUST AGREEMENT UNDER THE HEADINGS “CONSENT TO JURISDICTION” AND
“WAIVER OF JURY TRIAL” ARE INCORPORATED

32

 

HEREIN BY THIS REFERENCE AND SUCH INCORPORATION SHALL
SURVIVE ANY TERMINATION OF THE COLLATERAL TRUST AGREEMENT.

Notwithstanding anything herein to the contrary, the Lien and security interest granted to the
Collateral Trustee pursuant to this Agreement and the exercise of any right or remedy by the
Collateral Trustee hereunder may be subject to the provisions of an ABL Intercreditor Agreement
and/or Receivables Facility Intercreditor Agreement. In the event of any conflict between the
terms of an ABL Intercreditor Agreement or Receivables Facility Intercreditor Agreement and this
Agreement, the terms of the ABL Intercreditor Agreement or Receivables Facility Intercreditor
Agreement shall govern and control.

33

 

IN WITNESS WHEREOF, each Grantor and the Collateral Trustee have caused this Agreement to be duly
executed and delivered by their respective officers thereunto duly authorized as of the date first
written above.

	 	 	 	 	 
	 	CONEXANT SYSTEMS, INC., as Grantor

 	 
	 	By:  	/s/ Mark. D. Peterson
 	 
	 	 	Name:  	Mark. D. Peterson 	 
	 	 	Title:  	Senior Vice President 	 
	 
	 	CONEXANT, INC., as Grantor

 	 
	 	By:  	/s/ Mark. D. Peterson
 	 
	 	 	Name:  	Mark. D. Peterson 	 
	 	 	Title:  	Senior Vice President 	 
	 
	 	CONEXANT SYSTEMS WORLDWIDE, INC., as Grantor

 	 
	 	By:  	/s/ Mark. D. Peterson
 	 
	 	 	Name:  	Mark. D. Peterson 	 
	 	 	Title:  	President 	 
	 
	 	BROOKTREE BROADBAND HOLDING, INC., as Grantor

 	 
	 	By:  	/s/ Mark. D. Peterson
 	 
	 	 	Name:  	Mark. D. Peterson 	 
	 	 	Title:  	President 	 
	 
	 	THE BANK OF NEW YORK MELLON TRUST COMPANY, N.A.,
as Collateral Trustee

 	 
	 	By:  	/s/ Sharon McGrath
 	 
	 	 	Name:  	 Sharon McGrath 	 
	 	 	Title:  	Vice President 	 
	 

34

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