Document:

<PAGE>

                                                                    EXHIBIT 10.3

EMPLOYMENT AGREEMENT

1. EMPLOYMENT AGREEMENT, effective as of 21 December, 2005 (the "Start Date")
between Implantable Vision, Inc, a Utah Corporation (the "COMPANY") residing at
25730 Lorain Rd., North Olmsted, OH 44070 and Dr. Alexander Philip Hatsis, an
individual residing at 33 Park Lane Place, Massapequa, NY 11758 (the
"EMPLOYEE"), hereby defines the terms under which the EMPLOYEE shall provide his
business management services on behalf of COMPANY.

2. BACKGROUND. The COMPANY currently is developing its proprietary business
model to commercialize phakic refractive lenses and other ophthalmic products
and/or services. The COMPANY acknowledges the need to establish a qualified
team, with expertise including but not limited to project management, sales,
clinical, marketing and business planning and implementation. The EMPLOYEE also
acknowledges that the COMPANY is in its early stages and from time to time may
be asked and/or required to perform services outside of its designated roles.
The COMPANY hereby believes that the EMPLOYEE meets its criteria.

3. DUTIES AND RESPONSIBILITIES. During the term of this Agreement, EMPLOYEE
shall serve as the Chief Medical Officer of the COMPANY reporting directly to
the Chief Executive Officer or the President of the COMPANY, and he shall
perform such duties, and have such powers, authority, functions, duties and
responsibilities for the COMPANY as are reasonably assigned to him by the Chief
Executive Officer, the President and/or the Board of Directors of the COMPANY
and as are consistent with the duties, responsibilities, and activities of a
Chief Medical Officer of the COMPANY. To the extent that the COMPANY becomes a
division or subsidiary of another entity, EMPLOYEE shall report directly to, and
have such powers, authority, functions, duties and responsibilities as are
reasonably assigned to him by, the Chief Executive Officer, President or
comparable officer of such division or subsidiary.

4. TERM OF THE AGREEMENT. The Term of this Agreement shall be three (3) years
from the Start Date.

5. CASH COMPENSATION. EMPLOYEE shall initially earn cash fees at the rate of one
hundred thousand dollars ($100,000.00) per year. Compensation will be paid on
the 1st and 15th of each month.

     5.1. EXPENSES. COMPANY will pay or reimburse EMPLOYEE for business expenses
          for travel, lodging and meals which EMPLOYEE incurs in performing
          services hereunder and which (i) COMPANY authorizes in writing prior
          to the time such expenses are incurred or (ii) if not so authorized in
          writing, COMPANY, in its sole discretion, determines to be reasonable
          under the circumstances. COMPANY will pay or reimburse EMPLOYEE for
          all such expenses promptly (within 30 days) after EMPLOYEE furnishes
          COMPANY with receipts or other evidence showing the amount of each
          such expense.

     5.2. CONVERSION TO EQUITY. At any time, EMPLOYEE can request to receive
          Compensation in common stock of COMPANY with COMPANY's written
          approval. Compensation will be paid according a warrant package
          currently offered by COMPANY and must be stated by an amendment to
          this Agreement or by a separate written agreement between COMPANY and
          EMPLOYEE.

     5.3. INSURANCE. The EMPLOYEE agrees that the COMPANY may at any time and
          for the COMPANY's own benefit, apply for and take out life, health,
          accident, and/or other insurance covering the EMPLOYEE either
          independently or together with others in any amount which the COMPANY
          deems to be in its best interests and the COMPANY may maintain any
          existing insurance policies on the life of the EMPLOYEE owned by the
          COMPANY. The COMPANY shall own all rights in any such insurance
          policies and in the cash values and proceeds thereof

<PAGE>

IVI Employment Agreement                                             Page 2 of 7

          and, except as otherwise provided, the EMPLOYEE shall not have any
          right, title or interest therein. The EMPLOYEE agrees to assist the
          COMPANY at the COMPANY's expense in obtaining any such insurance by,
          among other things, submitting to the customary examinations and
          correctly preparing, signing and delivering such applications and
          other documents as may be required by insurers.

     5.4. TAX WITHHOLDING. The COMPANY may withhold from any amounts payable
          under this Agreement such federal, state or local taxes as shall be
          required to be withheld pursuant to any applicable law or regulation.

6. CONFIDENTIALITY; INVENTIONS. The EMPLOYEE shall respect and agrees not to use
in any way for his benefit or the benefit of others, except as directed by the
COMPANY, confidential and proprietary information relating to the technologies,
strategies and business practices and information of the COMPANY and/or its
affiliates, which has commercial value to the COMPANY and/or its affiliates and
which the COMPANY and/or its affiliates treats as confidential ("Confidential
Information"). By way of illustration, but not limitation, Confidential
Information includes (a) all ideas, discoveries, inventions, improvements, trade
secrets, formulas, know-how, works of authorship or other intellectual property,
(b) all inventions and other material produced or compiled by the COMPANY in
performing services under this agreement, (c) information labeled "Confidential"
or "Proprietary" or similarly identified by the COMPANY as confidential, (d)
information regarding plans for research, development, new products, marketing
and selling, business plans, budgets and unpublished financial statements,
licenses, prices and costs, (e) information concerning supplies, vendors and
customers, including without limitation, past, present and prospective customer
lists, and (f) information regarding the skills and compensation of employees of
the COMPANY. Confidential Information shall not include any information that (i)
is or becomes generally known or available to the public through no fault of you
or your representatives, agents or affiliates, (ii) is known and reduced to
tangible form by you prior to the time it is disclosed to you, (iii) is legally
acquired from a third party who has the right to disclose the information.

EMPLOYEE acknowledges the confidential and proprietary character of the
Confidential Information and agrees not to use, reproduce or disclose in any
form all or any part of the Confidential Information without the prior written
consent of the COMPANY in each instance, except as may be required in the
ordinary course of performing services under this agreement, or as may be
compelled by legal process. Upon termination of this agreement for any reason,
including expiration of the term, the EMPLOYEE agrees to cease using and return
to the COMPANY all whole or partial copies and derivatives of the Confidential
Information (including without limitation material compiled by you pursuant to
this agreement), whether in your possession or under your direct or indirect
control, if requested in writing within thirty (30) days of the EMPLOYEE's date
of termination from the COMPANY.

EMPLOYEE confirms that all confidential information is and shall remain the
exclusive property of the COMPANY. All memoranda, notes, reports, software,
sketches, photographs, drawings, plans, business records, papers or other
documents or computer-stored or disk-stored information kept or made by EMPLOYEE
relating to the business of the COMPANY shall be and will remain the sole and
exclusive property of the COMPANY and shall be promptly delivered and returned
to the COMPANY immediately upon the termination of his employment with the
COMPANY.

EMPLOYEE shall make full and prompt disclosure to the COMPANY of all inventions,
improvements, ideas, concepts, discoveries, methods, developments, software and
works of authorship, whether or not copyrightable, trademarkable or licensable,
which are created, made, conceived or reduced to practice by EMPLOYEE for the
COMPANY during his services with the COMPANY, whether or not during normal
working

<PAGE>

IVI Employment Agreement                                             Page 3 of 7

hours or on the premises of the COMPANY (the "Developments"). All Developments
shall be the sole property of the COMPANY, and EMPLOYEE hereby assigns to the
COMPANY, without further compensation, all of his rights, title and interests in
and to the Developments and any and all related patents, patent applications,
copyrights, copyright applications, trademarks and tradenames in the United
States and elsewhere.

EMPLOYEE shall assist the COMPANY in obtaining, maintaining and enforcing
patent, copyright and other forms of legal protection for intellectual property
in any country. Upon the request of the COMPANY, EMPLOYEE shall sign all
applications, assignments, instruments and papers and perform all acts necessary
or desired by the COMPANY in order to protect its rights and interests in any
Developments.

This Section shall survive the termination of this agreement for any reason,
including but not limited to expiration of the term of this agreement.

7. RESTRICTION ON COMPETITION. The EMPLOYEE shall not, without the prior written
consent of the COMPANY, directly or indirectly, for himself or for any other
person, whether as a proprietor, partner, EMPLOYEE, agent, consultant, director,
officer, shareholder or participant in any business entity other than the
COMPANY, engage in the business of developing, marketing or distributing
products that in any way infringe on claims made in issued or pending patents
from the COMPANY anywhere in the world during the term of this Agreement and for
two (2) year following the termination of this Agreement.

8. TERMINATION TERMS. The COMPANY may terminative this Agreement at any time for
any reason upon payment to the EMPLOYEE of any outstanding accrued amounts owed
the EMPLOYEE.

9. SUCCESSORS. This Agreement is personal to the EMPLOYEE and, without the prior
written consent of the COMPANY, shall not be assignable by the EMPLOYEE
otherwise than by will or the laws of descent and distribution. This Agreement
shall inure to the benefit of and be enforceable by the EMPLOYEE's legal
representatives.

This Agreement shall inure to the benefit of and be binding upon the COMPANY and
its successors. The COMPANY shall require any successor to all or substantially
all of the business and/or assets of the COMPANY, whether direct or indirect, by
purchase, merger, consolidation, acquisition of stock, or otherwise, expressly
to assume and agree to perform this Agreement in the same manner and to the same
extent as the COMPANY would be required to perform if no such succession had
taken place.

10. REPRESENTATIONS AND WARRANTIES. EMPLOYEE represents and warrants to COMPANY
that EMPLOYEE:

     10.1. has responded accurately and honestly to requests for professional
          background and credentials;

     10.2. has made no misrepresentations, whether express or by omission, of
          material fact regarding your professional history or credentials; and

     10.3. shall immediately notify the COMPANY if there is any material change
          in the status of representations made to the COMPANY.

     10.4. acknowledges that the COMPANY has relied on the accuracy of the
          foregoing representations, warranties and acknowledgements in entering
          into this agreement.

     10.5. agrees to perform all services in accordance with the policies,
          procedures and rules established by the COMPANY and will comply with
          all laws, rules and regulations that are generally applicable to the
          COMPANY or its subsidiaries and their respective employees, directors
          and officers.

<PAGE>

IVI Employment Agreement                                             Page 4 of 7

     10.6. will devote his best efforts to the performance of his duties and
          responsibilities on behalf of the COMPANY. Best Efforts need to be
          determined by the Management Board procedures. This agreement does not
          preclude EMPLOYEE from working for a company on other products deemed
          not to be in competition with the products or technology offered by
          COMPANY.

     10.7. agrees to provide COMPANY with reasonable notice of any new company
          and/or product with which he is working and with information regarding
          any potential conflicts during the term of this Agreement.

     10.8. agrees not to support (by way of investment or otherwise) any
          activity that may be competitive with the business of the COMPANY as
          it is defined at the signing of this agreement or similarly pose a
          conflict of interest with that business.

     10.9. has full power and lawful authority to perform under this Agreement
          on the terms and conditions herein set forth.

11. GENERAL PROVISIONS.

     11.1. This Agreement, combined with the Attachments, constitutes the full
          understanding between the parties with reference to the subject matter
          hereof, and no statements or agreements by or between the parties,
          whether orally or in writing, except as provided for elsewhere in this
          Section 9, made prior to or at the signing hereof, shall vary or
          modify the written terms of this Agreement. Neither party shall claim
          any amendment, modification, or release from any provisions of this
          Agreement by mutual agreement, acknowledgment, or otherwise, unless
          such mutual agreement is in writing, signed by the other party, and
          specifically states that it is an amendment to this Agreement. The
          terms of the recitals set forth above are incorporated by reference
          and made a part of this Agreement.

     11.2. This Agreement, and the rights of the parties under this Agreement,
          may not be sold, assigned or otherwise transferred without the prior
          written consent of the other parties, said approval not to be
          unreasonably withheld. This Agreement is binding upon the parties'
          heirs, successors and assigns. The duties and obligations of the
          EMPLOYEE under this letter, being personal, may not be delegated or
          assigned.

     11.3. This Agreement shall be construed and enforced in accordance with the
          laws of the State of Ohio. The parties hereby consent to the exclusive
          personal jurisdiction and venue of the federal courts located in
          Cleveland, Ohio and the state courts located in such District for any
          proceeding, claims or disputes arising out of or in connection with
          this agreement, and further consent that any process, notice of motion
          or other application to the court or a judge thereof may be served
          outside of the State of Ohio as permitted under the laws of the State
          of Ohio.

     11.4. In the unlikely event of a dispute between the COMPANY and the
          EMPLOYEE resulting from the relationship with the COMPANY defined by
          this Agreement or from the termination of this Agreement by the
          COMPANY (other than matters involving the disclosure of any
          confidential information or breach of any agreements for which the
          COMPANY may seek and obtain injunctive relief), the parties each agree
          to submit the dispute to final and binding arbitration in Cleveland,
          Ohio in accordance with the then-applicable rules for the resolution
          of employment disputes, as the exclusive remedy for such controversy,
          claim or dispute. This means that there will be no court or jury trial
          of disputes between us concerning the business relationship defined by
          this Agreement or the termination of this Agreement by the COMPANY.

<PAGE>

IVI Employment Agreement                                             Page 5 of 7

     11.5. All notices or other communications required or permitted under this
          Agreement shall be in writing and shall be deemed to have been duly
          given if delivered personally or sent by fax or email, with date and
          time of transmittal recorded therein, or by registered or certified
          mail, postage prepaid or via national or international courier,
          addressed as to the party entitled to notice at the address set forth
          on the books and record of the COMPANY, or such other address as is
          subsequently provided from such party to the other party.

     11.6. If any provision of this Agreement is unenforceable or illegal by any
          court of competent jurisdiction or an arbitrator, the remainder of the
          Agreement shall remain in full force and effect. If any one or more of
          the provisions contained in this Agreement shall for any reason be
          held to be excessively broad as to duration, geographical scope,
          activity or subject, such provision shall be construed by limiting and
          reducing it so as to be enforceable to the extent compatible with the
          applicable law.

     11.7. This Agreement may be executed in two or more counterparts, each of
          which, whether photocopy, facsimile or ink, shall be deemed an
          original, but all of which together shall constitute one instrument.
          No modification or amendment of this Agreement will be effective
          unless it is in writing and signed by both the COMPANY and the
          EMPLOYEE.

     11.8. No delay or failure of any party to exercise any right under this
          Agreement shall waive such right.

     11.9. The COMPANY and EMPLOYEE agree that facsimile transmissions,
          including this Agreement, directed to the other parties and exhibiting
          the time of the sending, shall be deemed to the original, binding, and
          an enforceable agreement, contract or document.

<PAGE>

IVI Employment Agreement                                             Page 6 of 7

Contact addresses and phone numbers are:

     COMPANY:

                 Implantable Vision, Inc.
                 25730 Lorain Road
                 North Olmsted, OH 44070
                 Phone: 1.440.777.0888
                 Fax: 1.440.777.2682

     EMPLOYEE:

                 Alexander Philip Hatsis
                 33 Park Lane Place
                 Massapequa, NY 11758
                 Phone: (516) 763-4106
                 Fax: (516) 763-5216

                 or to such other address as the addressee shall have designated
                 by notice to the other party given in accordance with this
                 Section. Any notice or other communication shall be deemed to
                 have been duly given if personally delivered or mailed via
                 registered or certified mail, postage prepaid return receipt
                 requested.

<PAGE>

IVI Employment Agreement                                             Page 7 of 7

     In Witness Whereof, the parties have duly executed this Agreement as of the
date of latest signature below to be effective December 21, 2005.

FOR: COMPANY

By: /S/ George W. Rozakis
    ----------------------------------
    George W. Rozakis
    President
    Implantable Vision, Inc.

    Date of Signature:
                       ---------------

FOR: EMPLOYEE

By: /S/ Alexander Philip Hatsis
    ----------------------------------
    Alexander Philip Hatsis

    Date of Signature:
                       ---------------EX-4.1

 

Exhibit 4.1

 

CONEXANT SYSTEMS, INC.

AND

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

AS TRUSTEE AND COLLATERAL AGENT

Floating Rate Senior Secured Notes due 2010

 

INDENTURE

Dated as of November 13, 2006

 

 

 

 

Table of Contents

	 	 	 	 	 	 	 
	 	 	 	 	Page
	 

	 	ARTICLE I	 	 	 	 
	 

	 	DEFINITIONS AND INCORPORATION BY REFERENCE	 	 	 	 
	 
	 	 	 	 	 	 
	SECTION 1.1.

	 	Definitions
	 	 	1	 
	SECTION 1.2.

	 	Other Definitions
	 	 	35	 
	SECTION 1.3.

	 	Incorporation by Reference of Trust Indenture Act
	 	 	36	 
	SECTION 1.4.

	 	Rules of Construction
	 	 	36	 
	 
	 	 	 	 	 	 
	 

	 	ARTICLE II	 	 	 	 
	 

	 	THE SECURITIES	 	 	 	 
	 
	 	 	 	 	 	 
	SECTION 2.1.

	 	Form, Dating and Terms
	 	 	37	 
	SECTION 2.2.

	 	Execution and Authentication
	 	 	45	 
	SECTION 2.3.

	 	Registrar, Paying Agent and Calculation Agent
	 	 	46	 
	SECTION 2.4.

	 	Paying Agent to Hold Money in Trust
	 	 	46	 
	SECTION 2.5.

	 	Holder Lists
	 	 	47	 
	SECTION 2.6.

	 	Transfer and Exchange
	 	 	47	 
	SECTION 2.7.

	 	Form of Certificate to be Delivered in Connection with Transfers to IAIs
	 	 	50	 
	SECTION 2.8.

	 	Form of Certificate to be Delivered in Connection with Transfers Pursuant to
Regulation S
	 	 	52	 
	SECTION 2.9.

	 	Mutilated, Destroyed, Lost or Stolen Securities
	 	 	53	 
	SECTION 2.10.

	 	Outstanding Securities
	 	 	54	 
	SECTION 2.11.

	 	Temporary Securities
	 	 	55	 
	SECTION 2.12.

	 	Cancellation
	 	 	55	 
	SECTION 2.13.

	 	Payment of Interest; Defaulted Interest
	 	 	55	 
	SECTION 2.14.

	 	Computation of Interest
	 	 	57	 
	SECTION 2.15.

	 	CUSIP, Common Code and ISIN Numbers
	 	 	57	 
	 
	 	 	 	 	 	 
	 

	 	ARTICLE III	 	 	 	 
	 

	 	COVENANTS	 	 	 	 
	 
	 	 	 	 	 	 
	SECTION 3.1.

	 	Payment of Securities
	 	 	57	 
	SECTION 3.2.

	 	Limitation on Indebtedness
	 	 	58	 
	SECTION 3.3.

	 	Limitation on Restricted Payments
	 	 	62	 
	SECTION 3.4.

	 	Limitation on Restrictions on Distributions from Restricted Subsidiaries
	 	 	67	 
	SECTION 3.5.

	 	Limitation on Sales of Assets and Subsidiary Stock
	 	 	69	 
	SECTION 3.6.

	 	Limitation on Liens
	 	 	75	 
	SECTION 3.7.

	 	Limitation on Sale/Leaseback Transaction
	 	 	75	 
	SECTION 3.8.

	 	Limitation on Affiliate Transactions
	 	 	76	 
	SECTION 3.9.

	 	Limitation on Sale of Capital Stock of Restricted Subsidiaries
	 	 	77	 
	SECTION 3.10.

	 	Limitation on Lines of Business
	 	 	78	 

i

 

	 	 	 	 	 	 	 
	 	 	 	 	Page
	SECTION 3.11.

	 	Change of Control
	 	 	78	 
	SECTION 3.12.

	 	SEC Reports
	 	 	80	 
	SECTION 3.13.

	 	Future Subsidiary Guarantors
	 	 	81	 
	SECTION 3.14.

	 	Maintenance of Office or Agency
	 	 	81	 
	SECTION 3.15.

	 	Corporate Existence
	 	 	82	 
	SECTION 3.16.

	 	Payment of Taxes and Other Claims
	 	 	82	 
	SECTION 3.17.

	 	Payments for Consent
	 	 	82	 
	SECTION 3.18.

	 	Compliance Certificate
	 	 	82	 
	SECTION 3.19.

	 	Further Instruments and Acts
	 	 	83	 
	SECTION 3.20.

	 	Statement by Officers as to Default
	 	 	83	 
	 
	 	 	 	 	 	 
	 

	 	ARTICLE IV	 	 	 	 
	 

	 	SUCCESSOR COMPANY	 	 	 	 
	 
	 	 	 	 	 	 
	SECTION 4.1.

	 	Merger and Consolidation
	 	 	83	 
	 
	 	 	 	 	 	 
	 

	 	ARTICLE V	 	 	 	 
	 

	 	REDEMPTION OF SECURITIES	 	 	 	 
	 
	 	 	 	 	 	 
	SECTION 5.1.

	 	Redemption
	 	 	85	 
	SECTION 5.2.

	 	Applicability of Article
	 	 	85	 
	SECTION 5.3.

	 	Election to Redeem; Notice to Trustee
	 	 	85	 
	SECTION 5.4.

	 	Selection by Trustee of Securities to Be Redeemed
	 	 	86	 
	SECTION 5.5.

	 	Notice of Redemption
	 	 	86	 
	SECTION 5.6.

	 	Deposit of Redemption Price
	 	 	87	 
	SECTION 5.7.

	 	Securities Payable on Redemption Date
	 	 	87	 
	SECTION 5.8.

	 	Securities Redeemed in Part
	 	 	88	 
	 
	 	 	 	 	 	 
	 

	 	ARTICLE VI	 	 	 	 
	 

	 	DEFAULTS AND REMEDIES	 	 	 	 
	 
	 	 	 	 	 	 
	SECTION 6.1.

	 	Events of Default
	 	 	88	 
	SECTION 6.2.

	 	Acceleration
	 	 	89	 
	SECTION 6.3.

	 	Other Remedies
	 	 	90	 
	SECTION 6.4.

	 	Waiver of Past Defaults
	 	 	91	 
	SECTION 6.5.

	 	Control by Majority
	 	 	91	 
	SECTION 6.6.

	 	Limitation on Suits
	 	 	91	 
	SECTION 6.7.

	 	Rights of Holders to Receive Payment
	 	 	92	 
	SECTION 6.8.

	 	Collection Suit by Trustee
	 	 	92	 
	SECTION 6.9.

	 	Trustee May File Proofs of Claim
	 	 	92	 
	SECTION 6.10.

	 	Priorities
	 	 	92	 
	SECTION 6.11.

	 	Undertaking for Costs
	 	 	93	 
	 
	 	 	 	 	 	 
	 

	 	ARTICLE VII	 	 	 	 
	 

	 	TRUSTEE	 	 	 	 
	 
	 	 	 	 	 	 
	SECTION 7.1.

	 	Duties of Trustee
	 	 	93	 
	SECTION 7.2.

	 	Rights of Trustee
	 	 	94	 

ii

 

	 	 	 	 	 	 	 
	 	 	 	 	Page
	SECTION 7.3.

	 	Individual Rights of Trustee
	 	 	96	 
	SECTION 7.4.

	 	Trustee’s Disclaimer
	 	 	96	 
	SECTION 7.5.

	 	Notice of Defaults
	 	 	96	 
	SECTION 7.6.

	 	Reports by Trustee to Holders
	 	 	96	 
	SECTION 7.7.

	 	Compensation and Indemnity
	 	 	97	 
	SECTION 7.8.

	 	Replacement of Trustee
	 	 	98	 
	SECTION 7.9.

	 	Successor Trustee by Merger
	 	 	99	 
	SECTION 7.10.

	 	Eligibility; Disqualification
	 	 	99	 
	SECTION 7.11.

	 	Preferential Collection of Claims Against the Company
	 	 	99	 
	SECTION 7.12.

	 	Trustee’s Application for Instruction from the Company
	 	 	99	 
	SECTION 7.13.

	 	Paying Agents
	 	 	100	 
	 
	 	 	 	 	 	 
	 

	 	ARTICLE VIII	 	 	 	 
	 

	 	DISCHARGE OF INDENTURE; DEFEASANCE	 	 	 	 
	 
	 	 	 	 	 	 
	SECTION 8.1.

	 	Discharge of Liability on Securities; Defeasance
	 	 	100	 
	SECTION 8.2.

	 	Conditions to Defeasance
	 	 	103	 
	SECTION 8.3.

	 	Application of Trust Money
	 	 	104	 
	SECTION 8.4.

	 	Repayment to the Company
	 	 	104	 
	SECTION 8.5.

	 	Indemnity for U.S. Government Obligations
	 	 	104	 
	SECTION 8.6.

	 	Reinstatement
	 	 	104	 
	 
	 	 	 	 	 	 
	 

	 	ARTICLE IX	 	 	 	 
	 

	 	AMENDMENTS	 	 	 	 
	 
	 	 	 	 	 	 
	SECTION 9.1.

	 	Without Consent of Holders
	 	 	105	 
	SECTION 9.2.

	 	With Consent of Holders
	 	 	106	 
	SECTION 9.3.

	 	Compliance with Trust Indenture Act
	 	 	107	 
	SECTION 9.4.

	 	Revocation and Effect of Consents and Waivers
	 	 	107	 
	SECTION 9.5.

	 	Notation on or Exchange of Securities
	 	 	108	 
	SECTION 9.6.

	 	Trustee to Sign Amendments
	 	 	108	 
	 
	 	 	 	 	 	 
	 

	 	ARTICLE X	 	 	 	 
	 

	 	SUBSIDIARY GUARANTEES	 	 	 	 
	 
	 	 	 	 	 	 
	SECTION 10.1.

	 	Subsidiary Guarantees
	 	 	108	 
	SECTION 10.2.

	 	Limitation on Liability; Termination, Release and Discharge
	 	 	110	 
	SECTION 10.3.

	 	Right of Contribution
	 	 	111	 
	SECTION 10.4.

	 	No Subrogation
	 	 	111	 
	 
	 	 	 	 	 	 
	 

	 	ARTICLE XI	 	 	 	 
	 

	 	COLLATERAL AND SECURITY	 	 	 	 
	 
	 	 	 	 	 	 
	SECTION 11.1.

	 	Collateral
	 	 	111	 
	SECTION 11.2.

	 	Further Assurances
	 	 	112	 
	SECTION 11.3.

	 	After-Acquired Property
	 	 	113	 
	SECTION 11.4.

	 	Impairment of Security Interest
	 	 	113	 
	SECTION 11.5.

	 	Agreements Requiring Application of Proceeds of Collateral
	 	 	114	 

iii

 

	 	 	 	 	 	 	 
	 	 	 	 	Page
	SECTION 11.6.

	 	Maintenance of Collateral
	 	 	114	 
	SECTION 11.7.

	 	Real Estate Mortgages and Filings
	 	 	114	 
	SECTION 11.8.

	 	Release of Liens on the Collateral
	 	 	115	 
	SECTION 11.9.

	 	Authorization of Actions to be Taken by the Collateral Agent Under the
Collateral Documents
	 	 	116	 
	SECTION 11.10.

	 	Collateral Accounts
	 	 	117	 
	 
	 	 	 	 	 	 
	 

	 	ARTICLE XII	 	 	 	 
	 

	 	MISCELLANEOUS	 	 	 	 
	 
	 	 	 	 	 	 
	SECTION 12.1.

	 	Trust Indenture Act Controls
	 	 	118	 
	SECTION 12.2.

	 	Notices
	 	 	118	 
	SECTION 12.3.

	 	Communication by Holders with other Holders
	 	 	119	 
	SECTION 12.4.

	 	Certificate and Opinion as to Conditions Precedent
	 	 	119	 
	SECTION 12.5.

	 	Statements Required in Certificate or Opinion
	 	 	119	 
	SECTION 12.6.

	 	When Securities Disregarded
	 	 	120	 
	SECTION 12.7.

	 	Rules by Trustee, Paying Agent and Registrar
	 	 	120	 
	SECTION 12.8.

	 	Legal Holidays
	 	 	120	 
	SECTION 12.9.

	 	GOVERNING LAW
	 	 	120	 
	SECTION 12.10.

	 	No Recourse Against Others
	 	 	120	 
	SECTION 12.11.

	 	Successors
	 	 	121	 
	SECTION 12.12.

	 	Multiple Originals
	 	 	121	 
	SECTION 12.13.

	 	Qualification of Indenture
	 	 	121	 
	SECTION 12.14.

	 	Table of Contents; Headings
	 	 	121	 
	SECTION 12.15.

	 	Force Majeure
	 	 	121	 
	SECTION 12.16.

	 	Waiver of Jury Trial
	 	 	121	 
	SECTION 12.17.

	 	Severability
	 	 	121	 
	 
	 	 	 	 	 	 
	SCHEDULE 3.4

	 	Existing Encumbrances or Restrictions	 	 	 	 
	 
	 	 	 	 	 	 
	EXHIBIT A Form of the Series A Note	 	 	 	 
	EXHIBIT B Form of the Series B Note	 	 	 	 
	EXHIBIT C Form of Indenture Supplement to Add Subsidiary Guarantors	 	 	 	 

iv

 

CROSS-REFERENCE TABLE

	 	 	 
	TIA	 	Indenture
	Section	 	Section
	310(a)(1)

	 	7.10
	(a)(2)

	 	7.10
	(a)(3)

	 	N.A.
	(a)(4)

	 	N.A.
	(a)(5)

	 	7.10
	(b)

	 	7.3; 7.8; 7.10
	(c)

	 	N.A.
	311(a)

	 	7.11
	(b)

	 	7.11
	(c)

	 	N.A.
	312(a)

	 	2.5
	(b)

	 	12.3
	(c)

	 	12.3
	313(a)

	 	7.6
	(b)(1)

	 	7.6
	(b)(2)

	 	7.6
	(c)

	 	7.6
	(d)

	 	7.6
	314(a)

	 	3.12; 3.18; 12.5
	(b)

	 	N.A.
	(c)(1)

	 	8.1; 11.8; 12.4
	(c)(2)

	 	8.1; 11.8; 12.4
	(c)(3)

	 	N.A.
	(d)

	 	12.5
	(e)

	 	12
	315(a)

	 	7.1
	(b)

	 	7.5
	(c)

	 	7.1
	(d)

	 	7.1
	(e)

	 	6.11
	316(a)(last sentence)

	 	12.6
	(a)(1)(A)

	 	6.5
	(a)(1)(B)

	 	6.4
	(a)(2)

	 	N.A.
	(b)

	 	6.7
	(c)

	 	9.4
	317(a)(1)

	 	6.8
	(a)(2)

	 	6.9
	(b)

	 	2.4
	318(a)

	 	12.1

 

N.A. means Not Applicable.

Note: This Cross-Reference Table shall not, for any purpose, be deemed to be part of this
Indenture.

v

 

     INDENTURE dated as of November 13, 2006, 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 TRUST COMPANY, N.A., a
national banking association, as Trustee (in such capacity, the “Trustee”) and as
Collateral Agent (in such capacity, “Collateral Agent”).

     For and in consideration of the premises and the purchase of the Securities 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 Floating Rate Senior Secured
Notes due 2010 issued on the date hereof (the “Initial Securities”), (ii) if and when
issued, an unlimited principal amount of additional Floating Rate Senior Secured Notes, Series A,
due 2010 in a non-registered offering or Floating Rate Senior Secured Notes, Series B, due 2010 in
a registered offering of the Company, that may be offered from time to time subsequent to the Issue
Date (the “Additional Securities”), (iii) if and when issued, the Company’s Floating Rate
Senior Secured Notes, Series B, due 2010, that may be issued from time to time in exchange for
Initial Securities or any Additional Securities in an offer registered under the Securities Act as
provided in a Registration Rights Agreement (as hereinafter defined) (the “Exchange
Securities,” together with the Initial Securities and Additional Securities, the
“Securities”).

ARTICLE I

DEFINITIONS AND INCORPORATION BY REFERENCE

     SECTION 1.1. Definitions.

     “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 shall 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.

     “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 Securities; provided that any such Investment must be at a
price equal to or greater than 100% of the principal amount of the Securities 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 Interest” means additional interest, if any, payable pursuant to Section 2(d) of
the Registration Rights Agreement.

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

     “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 shall be
deemed to be control.

     “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 shall 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;
	 
	 	(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 shall 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

2

 

	 	 	 	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)	 	the sale of Capital Stock of Skyworks Solutions, Inc., a Delaware corporation,
and the use of proceeds therefrom;
	 
	 	(12)	 	a transaction or series of related transactions that results in a Change of
Control;
	 
	 	(13)	 	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;
	 
	 	(14)	 	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;
	 
	 	(15)	 	transactions permitted under Section 4.1;

3

 

	 	(16)	 	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
disposition subject to Section 3.3; and
	 
	 	(17)	 	an Asset Swap effected in compliance with Section 3.5.

     “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.

     “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

4

 

	 	 	 	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 such
obligation at the time any determination thereof is to be made as 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.;

5

 

	 	(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)	 	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 5.0% 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

6

 

(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.

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

     “Collateral” means all property and assets, whether now owned or hereafter acquired, in which
Liens are, from time to time, purported to be granted to secure the Securities pursuant to the
Collateral Documents.

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

     “Collateral Agent” means The Bank of New York, acting as the collateral agent under the
Collateral Documents.

     “Collateral Documents” means the mortgages, deeds of trust, deeds to secure debt, security
agreements, pledge agreements, agency agreements and other instruments and documents executed and
delivered pursuant to this Indenture or any of the foregoing, as the same may be amended,
supplemented or otherwise modified from time to time and pursuant to which Collateral is pledged,
assigned or granted to or on behalf of the Collateral Agent for the ratable benefit of the Holders
and the Trustee or notice of such pledge, assignment or grant is given.

7

 

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

     “Consolidated Coverage Ratio” means as of any date of determination, with respect to any
Person, the ratio of (x) the aggregate amount of Consolidated EBITDA of such Person for the period
of the most recent four consecutive fiscal quarters ending prior to the date of such determination
for which financial statements are in existence to (y) Consolidated Interest Expense for such four
fiscal quarters, provided, however, that:

	 	(1)	 	if the Company or any Restricted Subsidiary:

	 	(i)	 	has Incurred any Indebtedness since the beginning of such
period that remains outstanding on such date of determination or if the
transaction giving rise to the need to calculate the Consolidated Coverage
Ratio is an Incurrence of Indebtedness, Consolidated EBITDA and Consolidated
Interest Expense for such period will be calculated after giving effect on a
pro forma basis to such Indebtedness as if such Indebtedness had been Incurred
on the first day of such period (except that in making such computation, the
amount of Indebtedness under any revolving credit facility outstanding on the
date of such calculation will be deemed to be (a) the average daily balance of
such Indebtedness during such four fiscal quarters or such shorter period for
which such facility was outstanding or (b) if such facility was created after
the end of such four fiscal quarters, the average daily balance of such
Indebtedness during the period from the date of creation of such facility to
the date of such calculation) and the discharge of any other Indebtedness
repaid, repurchased, defeased or otherwise discharged with the proceeds of such
new Indebtedness as if such discharge had occurred on the first day of such
period; or
	 
	 	(ii)	 	has repaid, repurchased, defeased or otherwise discharged any
Indebtedness since the beginning of the period that is no longer outstanding on
such date of determination or if the transaction giving rise to the need to
calculate the Consolidated Coverage Ratio involves a discharge of Indebtedness
(in each case other than Indebtedness Incurred under any revolving credit
facility unless such Indebtedness has been permanently repaid and the related
commitment terminated), Consolidated EBITDA and Consolidated Interest Expense
for such period will be calculated after giving effect on a pro forma basis to
such discharge of such Indebtedness, including with the proceeds of such new
Indebtedness, as if such discharge had occurred on the first day of such
period;

8

 

	 	(2)	 	if since the beginning of such period the Company or any Restricted Subsidiary
will have made any Asset Disposition or disposed of any company, division, operating
unit, segment, business, group of related assets or line of business or if the
transaction giving rise to the need to calculate the Consolidated Coverage Ratio is
such an Asset Disposition:

	 	(i)	 	the Consolidated EBITDA for such period will be reduced by an
amount equal to the Consolidated EBITDA (if positive) directly attributable to
the assets which are the subject of such disposition for such period or
increased by an amount equal to the Consolidated EBITDA (if negative) directly
attributable thereto for such period; and
	 
	 	(ii)	 	Consolidated Interest Expense for such period will be reduced
by an amount equal to the Consolidated Interest Expense directly attributable
to any Indebtedness of the Company or any Restricted Subsidiary repaid,
repurchased, defeased or otherwise discharged with respect to the Company and
its continuing Restricted Subsidiaries in connection with such disposition for
such period (or, if the Capital Stock of any Restricted Subsidiary is sold, the
Consolidated Interest Expense for such period directly attributable to the
Indebtedness of such Restricted Subsidiary to the extent the Company and its
continuing Restricted Subsidiaries are no longer liable for such Indebtedness
after such sale);

	 	(3)	 	if since the beginning of such period the Company or any Restricted Subsidiary
(by merger or otherwise) will have made an Investment in any Restricted Subsidiary (or
any Person which becomes a Restricted Subsidiary or is merged with or into the Company)
or an acquisition of assets, including any acquisition of assets occurring in
connection with a transaction causing a calculation to be made hereunder, which
constitutes all or substantially all of a company, division, operating unit, segment,
business, group of related assets or line of business, Consolidated EBITDA and
Consolidated Interest Expense for such period will be calculated after giving pro forma
effect thereto (including the Incurrence of any Indebtedness) as if such Investment or
acquisition occurred on the first day of such period; and
	 
	 	(4)	 	if since the beginning of such 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 period) will have Incurred any Indebtedness or
discharged any Indebtedness, made any disposition or any Investment or acquisition of
assets that would have required an adjustment pursuant to clause (1), (2) or (3) above
if made by the Company or a Restricted Subsidiary during such period, Consolidated
EBITDA and Consolidated Interest Expense for such period will be calculated after
giving pro forma effect thereto as if such transaction occurred on the first day of
such period.

     For purposes of this definition, 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

9

 

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 shall be calculated by applying such optional
rate chosen by the 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
	 
	 	(4)	 	consolidated amortization expense or impairment charges recorded in connection
with the application of Financial Accounting Standard No. 142 “Goodwill and Other
Intangibles” and Financial Accounting Standard No. 144 “Accounting for the Impairment
or Disposal of Long Lived Assets;” 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 charges
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); plus
	 
	 	(9)	 	the one-time payment of $70 million for the settlement of the Company’s
litigation with Texas Instruments Incorporated in May 2006.

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

10

 

     “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 one of its Restricted Subsidiaries or secured by a Lien on assets of
such Person or one of its Restricted Subsidiaries;
	 
	 	(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 shall 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.

11

 

     For purposes of the foregoing, total interest expense will be determined (i) after giving
effect to any net payments made or received by the Company and its Subsidiaries with respect to
Interest Rate Agreements and (ii) exclusive of amounts classified as other comprehensive income in
the balance sheet of 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:

	 	(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 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;

12

 

	 	(4)	 	any extraordinary gain or loss (determined in accordance with GAAP); and
	 
	 	(5)	 	the cumulative effect of a change in accounting principles.

     “Consolidated Net Tangible Assets” means total consolidated assets of the Company and its
Restricted Subsidiaries determined in accordance with GAAP (less accumulated depreciation and
valuation reserves and other reserves and items deductible from gross book value of specific asset
accounts under GAAP) after deducting therefrom (1) all current liabilities; (2) any item
representing an Investment in an Unrestricted Subsidiary or any other Person (other than the
Company or a Restricted Subsidiary); (3) the Investment of any other Person representing Capital
Stock in a Restricted Subsidiary to the extent of such Investment; and (4) all goodwill, trade
names, trademarks, patents, unamortized debt discount, organization expenses and other like
intangibles, all as set forth on the most recent consolidated balance sheet of the Company and the
Restricted Subsidiaries and determined in accordance with GAAP.

     “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.

     “Currency Agreement” means in respect of a 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 Securities” means certificated Securities.

     “Determination Date” with respect to an Interest Period, means the second London Banking Day
preceding the first day of the Interest Period.

     “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:

	 	(1)	 	matures or is mandatorily redeemable pursuant to a sinking fund obligation or
otherwise;

13

 

	 	(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 a 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 Securities or (b) on which there are no Securities 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) shall 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 prior to
compliance by the Company with the provisions of this Indenture described in 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 shall 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 (x) public offerings with respect
to the Company’s Common Stock, or options, warrants or rights, registered on Form S-4 or S-8, (y)
an issuance to any Subsidiary or (z) any offering of Common Stock issued in connection with a
transaction that constitutes a Change of Control.

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

     “Exchange Offer” has the meaning set forth in the Registration Rights Agreement.

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

     “Foreign Subsidiary” means any Restricted Subsidiary that is not organized under the laws of
the United States of America or any state thereof or the District of Columbia and any Subsidiary of
such Restricted Subsidiary.

14

 

     “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 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 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
shall 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 for the payment of which obligations or guarantee the full faith and credit of
the United States is pledged and are not callable or redeemable at the option of the issuer
thereof.

     “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.

     “Guarantor Subordinated Obligation” means, with respect to a Subsidiary Guarantor, any
Indebtedness of such Subsidiary Guarantor (whether outstanding on the Issue Date or thereafter
Incurred) which is expressly subordinated in right of payment to the obligations of such Subsidiary
Guarantor under its Subsidiary Guarantee pursuant to a written agreement.

     “Hedging Obligations” of any Person means the obligations of such Person pursuant to any
Interest Rate Agreement or Currency Agreement.

     “Holder” means a Person in whose name a Security 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.

     “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

15

 

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

16

 

	 	(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 shall 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 shall 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” shall 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

17

 

	 	 	 	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 Purchasers” means, together, J.P. Morgan Securities Inc. and Credit Suisse Securities
(USA) LLC.

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

     “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.

     “Investment” means, with respect to any Person, all investments by such Person in other
Persons (including Affiliates) in the form of any direct or indirect 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 Person and all other items 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 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)

18

 

	 	 	 	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 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 November 13, 2006.

     “Jazz” means Jazz Semiconductor, Inc., a Delaware corporation.

     “LIBOR,” with respect to an Interest Period, will be the rate (expressed as a percentage per
annum) for deposits in U.S. dollars for a three-month period beginning on the second London Banking
Day after the Determination Date that appears on Telerate Page 3750 as of 11:00 a.m., London time,
on the Determination Date. If Telerate Page 3750 does not include such a rate or is unavailable on
a Determination Date, the Calculation Agent will request the principal London office of each of
four major banks in the London interbank market, as selected by the Calculation Agent, after
consultation with the Company, to provide such bank’s offered quotation (expressed as a percentage
per annum), as of approximately 11:00 a.m., London time, on such Determination Date, to prime banks
in the London interbank market for deposits in a Representative Amount in U.S. dollars for a
three-month period beginning on the second London Banking Day after the Determination Date. If at
least two such offered quotations are so provided, the rate for the Interest Period will be the
arithmetic mean of such quotations. If fewer than two such quotations are so provided, the
Calculation Agent will request each of three major banks in New York City, as selected by the
Calculation Agent, after consultation with the Company, to provide such bank’s rate (expressed as a
percentage per annum), as of approximately 11:00 a.m., New York City time, on such Determination
Date, for loans in a Representative Amount in U.S. dollars to leading European banks for a
three-month period beginning on the second London Banking Day after the Determination Date. If at
least two such rates are so provided, then the rate for the Interest Period will be the arithmetic
mean of such rates. If fewer than two such rates are so provided, then the rate for the Interest
Period will be the rate in effect with respect to the immediately preceding Interest Period.

     “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).

     “London Banking Day” is any day on which dealings in U.S. dollars are transacted or, with
respect to any future date, are expected to be transacted in the London interbank market.

19

 

     “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.

     “Mindspeed” means Mindspeed Technologies, Inc., a Delaware corporation.

     “Mortgages” means the mortgages, deeds of trust, deeds to secure Indebtedness or other similar
documents securing Liens on the Premises, as well as the other Collateral secured by and described
in the mortgages, deeds of trust, deeds to secure Indebtedness or other similar documents.

     “Net Available Cash” from an Asset Disposition, Recovery Event or Asset Swap means cash
payments received (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;
	 
	 	(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.

20

 

     “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
Collateral 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
Collateral Documents.

     “Newport Beach Property” means the real property and improvements owned by the Company in
Newport Beach, California located at 4311 and 4321 Jamboree Road.

     “Non-Guarantor Restricted Subsidiary” means any Restricted Subsidiary that is not a Subsidiary
Guarantor.

     “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.

     “Offering Memorandum” means the final Offering Memorandum dated as of November 7, 2006
relating to the offering of the Securities.

     “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.

21

 

     “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.

     “Pari Passu Indebtedness” means Indebtedness that ranks equally in right of payment to the
Securities.

     “Pari Passu Secured Indebtedness” means any Indebtedness of the Company or any Subsidiary
Guarantor that ranks pari passu in right of payment with the Securities or the relevant Subsidiary
Guarantee and is secured by a Lien on the Collateral that has the same priority as the Lien
securing the Securities and that is designated in writing as such by the Company to the Trustee and
the holders of such indebtedness enter into an appropriate agency agreement with the Collateral
Agent.

     “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;
	 
	 	(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;

22

 

	 	(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 $10.0 million with respect to all loans or
advances at any time outstanding; provided, however, that the Company and its
Subsidiaries shall comply in all material respects with the provisions of the
Sarbanes-Oxley Act of 2002 and the rules and regulations promulgated in connection
therewith relating to the provision of such loans and advances;
	 
	 	(13)	 	Investments in the Securities;
	 
	 	(14)	 	any Investment consisting of the contribution of intellectual property;
	 
	 	(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 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;

23

 

	 	(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;
	 
	 	(19)	 	any Asset Swap made in accordance with Section 3.5; and
	 
	 	(20)	 	any Investment consisting of the contribution of the Newport Beach Property to
any Person; provided that the consideration received by the Company (whether cash or
non-cash) in return for such contribution is not less than the fair market value (as
evidenced by a resolution of the Board of Directors of the Company) of the Newport
Beach Property.

     “Permitted Liens” means, with respect to any Person:

	 	(1)	 	Liens on assets transferred to a Receivables Entity or on assets of a
Receivables Entity, in either case Incurred in connection with a Qualified Receivables
Transaction;
	 
	 	(2)	 	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);
	 
	 	(3)	 	Liens on property or shares of stock of a Person at the time such Person
becomes a Restricted Subsidiary; provided, however, that such Liens are not created,
Incurred or assumed in connection with, or in contemplation of, such other Person
becoming a Restricted Subsidiary; provided further, however, that any such Lien may not
extend to any other property owned by the Company or any Restricted Subsidiary;
	 
	 	(4)	 	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, however, that such Liens may not extend to any other
property owned by the Company or any Restricted Subsidiary;
	 
	 	(5)	 	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

24

 

	 	 	 	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;
	 
	 	(6)	 	Liens arising out of conditional sale, retention, consignment or similar
arrangements, incurred in the ordinary course of business, for the sale of goods;
	 
	 	(7)	 	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;
	 
	 	(8)	 	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;
	 
	 	(9)	 	judgment Liens not giving rise to an Event of Default;
	 
	 	(10)	 	Liens securing Refinancing Indebtedness Incurred to refinance, refund, replace,
amend, extend or modify, as a whole or in part, Indebtedness that was previously so
secured pursuant to clauses (3), (4), (16) and (23) of this definition, 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) any such Lien 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;
	 
	 	(11)	 	Liens securing Hedging Obligations so long as the related Indebtedness is, and
is permitted to be under this Indenture, secured by a Lien on the same property
securing such Hedging Obligation;
	 
	 	(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
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:

25

 

	 	(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 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 and 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;
	 
	 	(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;

26

 

	 	(21)	 	leases, licenses, subleases and sublicenses of assets (including, without
limitation, real property and intellectual property rights) 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 securing the Securities (and any Additional Securities issued pursuant
to, and in accordance with, the terms of this Indenture) and Subsidiary Guarantees or
any obligations owing to the Trustee or the Collateral Agent under this Indenture or
the Collateral Documents;
	 
	 	(24)	 	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;
	 
	 	(25)	 	Liens created 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;
	 
	 	(26)	 	Liens securing cash to be used in the ordinary course of business in an
aggregate amount at any one time not to exceed $25.0 million; and
	 
	 	(27)	 	Liens securing Indebtedness (other than Subordinated Obligations and Guarantor
Subordinated Obligations) in an aggregate principal amount outstanding at any one time
not to exceed $15.0 million.

     “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.

27

 

     “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 (a) any transaction relating to the Credit and
Security Agreement dated as of November 29, 2005 by and between Conexant USA and Wachovia Bank,
National Association, as in effect from time to time and (b) 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 (1) a Receivables Entity (in the case of a transfer by the Company or any of its Restricted
Subsidiaries) and (2) any other Person, 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, or
in respect of which security interests are customarily granted, in connection with an asset
securitization involving Receivables.

     “Receivable” means a right to receive payment arising from a sale or lease of goods 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 goods or services under terms that permit the
purchase of such goods and services on credit and shall include, in any event, any items of
property 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 and any
“supporting obligations” as so defined.

     “Receivables Entity” means (a) Conexant USA 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 USA, 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);

28

 

	 	(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.

Any such designation by the Board of Directors of the Company shall 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.

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

     “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.

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

     “Refinancing Indebtedness” means Indebtedness 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” shall each have a

29

 

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 Securities, 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 Securities, the Refinancing Indebtedness has a Stated Maturity
at least 91 days later than the Stated Maturity of the Securities;
	 
	 	(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;
	 
	 	(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
Securities or the Subsidiary Guarantee, such Refinancing Indebtedness is subordinated
in right of payment to the Securities 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.

     “Registration Rights Agreement” means that certain registration rights agreement dated as of
the Issue Date by and among the Company, the Subsidiary Guarantors and the initial purchasers set
forth therein and, with respect to any Additional Securities, one or more substantially similar
registration rights agreements among the Company and the other parties thereto, as such agreements
may be amended from time to time.

     “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.

30

 

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

     “Representative Amount” means a principal amount of not less than $1.0 million for a single
transaction in the relevant market at the relevant time.

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

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

     “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 Securities 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
Securities.

     “Restricted Securities Legend” means the Private Placement Legend set forth in Section
2.1(d)(1) or the Regulation S Legend set forth in Section 2.1(d)(2), as applicable.

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

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

     “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 Securities (as appointed
by DTC), or any successor Person thereto and shall initially be the Trustee.

     “Securities Documents” means this Indenture, the Securities and the Collateral Documents.

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

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     “Shelf Registration Statement” has the meaning set forth in the Registration Rights Agreement.

     “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 date hereof.

     “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 securitization of Receivables transactions.

     “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 shall 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.

     “Subordinated Obligation” means any Indebtedness of the Company (whether outstanding on the
Issue Date or thereafter Incurred) which is subordinated or junior in right of payment to the
Securities pursuant to a written agreement.

     “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, in the
case of clauses (1) and (2), 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 Securities and
Exchange Securities issued in a registered exchange offer pursuant to the Registration Rights
Agreement by a Subsidiary Guarantor pursuant to the terms of this Indenture and any supplemental
indenture thereto, and, collectively, all such Guarantees. Each such Subsidiary Guarantee will be
in the form prescribed by Article X of this Indenture.

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     “Subsidiary Guarantor” means each of Conexant, Inc., Brooktree Broadband Holding, Inc. and
Ficon Technology, Inc.; 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.

     “Telerate Page 3750” means the display designated as “Page 3750” on the Moneyline Telerate
service (or such other page as may replace Page 3750 on that service).

     “TIA” or “Trust Indenture Act” means the Trust Indenture Act of 1939, as in effect on the date
of this Indenture; provided, however, that in the event the Trust Indenture Act of 1939 is amended
after such date, “TIA” or “Trust Indenture Act” means, to the extent required by any such amendment
the Trust Indenture Act of 1939 as so amended.

     “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 New York Uniform Commercial Code as in effect from time to
time.

     “Unrestricted Subsidiary” means:

	 	(1)	 	any Subsidiary of the Company that at the time of determination shall 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 the Indebtedness of such Subsidiary and its Subsidiaries shall, at the date of
designation, and will 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;

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(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; and

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

     Any such designation by the Board of Directors of the Company shall 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 shall thereafter cease to be an Unrestricted Subsidiary for purposes of
this Indenture and any Indebtedness of such Subsidiary shall 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 shall 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.

     “U.S. Government Obligations” means securities that are (a) direct obligations of the United
States of America for the timely payment of which its full faith and credit is pledged or (b)
obligations of a Person controlled or supervised by and acting as an agency or instrumentality of
the United States of America the timely payment of which is unconditionally guaranteed as a full
faith and credit obligation of the United States of America, which, in either case, are not
callable or redeemable at the option of the issuer thereof, and shall also include a depositary
receipt issued by a bank (as defined in Section 3(a)(2) of the Securities Act), as custodian with
respect to any such U.S. Government Obligations or a specific payment of principal of or interest
on any such U.S. Government Obligations held by such custodian for the account of the holder of
such depositary receipt; provided that (except as required by law) such custodian is not authorized
to make any deduction from the amount payable to the holder of such depositary receipt from any
amount received by the custodian in respect of the U.S. Government Obligations or the specific
payment of principal of or interest on the U.S. Government Obligations evidenced by such depositary
receipt.

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

     “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 Securities”
	 	2.1(b)
	“Affiliate Transaction”
	 	3.8
	“Agent”
	 	3.14
	“Agent Members”
	 	2.1(e)(iii)
	“Asset Disposition Offer”
	 	3.5(c)
	“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
	“bankruptcy provisions”
	 	6.1(a)(7)
	“Calculation Agent”
	 	2.3
	“Change of Control Offer”
	 	3.11(b)
	“Change of Control Payment”
	 	3.11(b)(1)
	“Change of Control Payment Date”
	 	3.11(b)(2)
	“Company Order”
	 	2.2
	“Covenant Defeasance”
	 	8.1(b)(2)
	“cross acceleration provision”
	 	6.1(a)(5)(ii)
	“Defaulted Interest”
	 	2.13
	“Event of Default”
	 	6.1(a)
	“Excess Proceeds”
	 	3.5(c)
	“Exchange Global Note”
	 	2.1(b)
	“Global Securities”
	 	2.1(b)
	“Guarantor Obligations”
	 	10.1
	“Institutional Accredited Investor Global Note”
	 	2.1(b)
	“Institutional Accredited Investor Notes”
	 	2.1(b)
	“judgment default provision”
	 	6.1(a)(6)
	“Legal Defeasance”
	 	8.1(b)(1)
	“Legal Holiday”
	 	12.8
	“payment default”
	 	6.1(a)(5)(i)
	“Paying Agent”
	 	2.3
	“Private Placement Legend”
	 	2.1(d)(A)
	“protected purchaser”
	 	2.9
	“Registrar”
	 	2.3
	“Regulation S Global Note”
	 	2.1(b)
	“Regulation S Legend”
	 	2.1(d)(B)

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	Term	 	Defined in Section
	“Regulation S Notes”
	 	2.1(b)
	“Resale Restriction Termination Date”
	 	2.6(a)
	“Restricted Payment”
	 	3.3(a)(5)
	“Restricted Securities”
	 	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(1)

     SECTION 1.3. Incorporation by Reference of Trust Indenture Act. This Indenture is
subject to the mandatory provisions of the TIA, which are incorporated by reference in and made a
part of this Indenture. The following TIA terms have the following meanings:

     “Commission” means the SEC.

     “indenture securities” means the Securities.

     “indenture security holder” means a Holder.

     “indenture to be qualified” means this Indenture.

     “indenture trustee” or “institutional trustee” means the Trustee.

     “obligor” on the indenture securities means the Company, any Subsidiary Guarantors and any
other obligor on the indenture securities.

     All other TIA terms used in this Indenture that are defined by the TIA, defined in the TIA by
reference to another statute or defined by SEC rule have the meanings assigned to them by such
definitions.

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

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

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

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     (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 Securities 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 Securities that may be authenticated and delivered under
this Indenture is unlimited. The Initial Securities issued on the date hereof will be in an
aggregate principal amount of $275,000,000. In addition, the Company may issue, from time to time
in accordance with the provisions of this Indenture, Additional Securities and Exchange Securities.
Furthermore, Securities may be authenticated and delivered upon registration or transfer, or in
lieu of, other Securities 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 Securities shall be known and designated as “Floating Rate Senior Secured Notes,
Series A, due 2010” of the Company. Additional Securities issued as securities bearing one of the
restrictive legends described under Section 2.1(d) (“Restricted Securities”) shall
be known and designated as “Floating Rate Senior Secured Notes, Series A, due 2010” of the Company.
Additional Securities issued other than as Restricted Securities shall be known and designated as
“Floating Rate Senior Secured Notes, Series B, due 2010” of the Company, and Exchange Securities
shall be known and designated as “Floating Rate Senior Secured Notes, Series B, due 2010” of the
Company.

          With respect to any Additional Securities, 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 Securities to be authenticated
and delivered pursuant to this Indenture which may be in an unlimited aggregate principal
amount;

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

     (3) whether such Additional Securities shall be Restricted Securities issued in the
form of Exhibit A hereto and/or shall be issued in the form of Exhibit B
hereto.

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          The Initial Securities, the Additional Securities and the Exchange Securities shall be
considered collectively as a single class for all purposes of this Indenture. Holders of the
Initial Securities, the Additional Securities and the Exchange Securities 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 Securities, the Additional Securities or the Exchange Securities
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 Securities 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 Securities.

     (b) The Initial Securities are being offered and sold by the Company pursuant to a Purchase
Agreement, dated November 7, 2006, among the Company and the Initial Purchasers. The Initial
Securities and any Additional Securities (if issued as Restricted Securities) (the “Additional
Restricted Securities”) 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 Securities and Additional
Restricted Securities 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 Securities 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 Securities and Additional Restricted Securities 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 Security, 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 Securities and Additional Securities 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 Security, without interest coupons, substantially in the form of Exhibit
A including appropriate legends as set forth under Section 2.1(d) (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

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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 Securities and Additional Securities 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.

          Exchange Securities exchanged for interests in the Rule 144A Notes, the Regulation S Notes and
the Institutional Accredited Investor Notes will be issued in the form of a permanent global
Security, without interest coupons, substantially in the form of Exhibit B, 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
“Exchange Global Note”). The Exchange Global Note will be deposited upon issuance with, or
on behalf of, the Trustee as Securities Custodian, duly executed by the Company and authenticated
by the Trustee as hereinafter provided. The Exchange 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 Rule 144A Global Note, the Regulation S Global Note, the Institutional Accredited Investor
Global Note and the Exchange Global Note are sometimes collectively herein referred to as the
“Global Securities.”

          The principal of (and premium, if any) and interest on the Securities shall be payable 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; provided, however, that, at the option
of the Company, each installment of interest may be paid by (i) check mailed to addresses of the
Persons entitled thereto as such addresses shall appear on the Securities Register or (ii) wire
transfer to an account located in the United States maintained by the payee. Payments in respect
of Securities represented by a Global Security (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 Securities (including principal,
premium, if any, and interest) held by a Holder of at least $1,000,000 aggregate principal amount
of Securities represented by Definitive Securities will be made by wire transfer to a U.S. dollar
account maintained by the payee with a bank in the United

39

 

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).

          The Securities may have notations, legends or endorsements required by law, stock exchange
rule or usage, in addition to those set forth on Exhibit A and Exhibit B and under
Section 2.1(d). The Company and the Trustee shall approve the forms of the Securities and
any notation, endorsement or legend on them. Each Security shall be dated the date of its
authentication. The terms of the Securities set forth in Exhibit A and Exhibit B
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 Securities 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. Unless and until (i) an Initial Security is sold under an
effective registration statement or (ii) an Initial Security is exchanged for an Exchange Security
in connection with an effective registration statement, in each case pursuant to the Registration
Rights Agreement or a similar agreement,

     (1) the Rule 144A Global Note and the Institutional Accredited Investor Global Note
shall bear the following legend (the “Private Placement Legend”) on the face
thereof:

THIS SECURITY HAS NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE
“SECURITIES ACT”), OR THE SECURITIES LAWS OF ANY STATE OR OTHER JURISDICTION. NEITHER THIS
SECURITY NOR ANY INTEREST OR PARTICIPATION HEREIN MAY BE REOFFERED, SOLD, ASSIGNED,
TRANSFERRED, PLEDGED, ENCUMBERED OR OTHERWISE DISPOSED OF IN THE ABSENCE OF SUCH
REGISTRATION OR UNLESS SUCH TRANSACTION IS EXEMPT FROM, OR NOT SUBJECT TO, SUCH
REGISTRATION. THE HOLDER OF THIS SECURITY, BY ITS ACCEPTANCE HEREOF, AGREES ON ITS OWN
BEHALF AND ON BEHALF OF ANY INVESTOR ACCOUNT FOR WHICH IT HAS PURCHASED SECURITIES, TO
OFFER, SELL OR OTHERWISE TRANSFER SUCH SECURITY, PRIOR TO THE DATE (THE “RESALE RESTRICTION
TERMINATION DATE”) THAT IS TWO YEARS AFTER THE LATER OF THE ORIGINAL ISSUE DATE HEREOF AND
THE LAST DATE ON WHICH THE ISSUER OR ANY AFFILIATE OF THE ISSUER WAS THE OWNER OF THIS
SECURITY (OR ANY PREDECESSOR OF SUCH SECURITY), ONLY (A) TO THE ISSUER, (B) PURSUANT TO A
REGISTRATION STATEMENT THAT HAS BEEN DECLARED EFFECTIVE UNDER THE SECURITIES ACT, (C) FOR SO
LONG AS THE SECURITIES ARE ELIGIBLE FOR RESALE PURSUANT TO RULE 144A UNDER THE SECURITIES
ACT, TO A PERSON IT REASONABLY BELIEVES IS A “QUALIFIED INSTITUTIONAL BUYER” AS DEFINED IN
RULE 144A UNDER THE SECURITIES ACT THAT PURCHASES FOR ITS OWN ACCOUNT OR FOR THE ACCOUNT OF
A QUALIFIED INSTITUTIONAL BUYER

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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 AN
INSTITUTIONAL ACCREDITED INVESTOR ACQUIRING THE SECURITY FOR ITS OWN ACCOUNT OR FOR THE
ACCOUNT OF SUCH AN INSTITUTIONAL ACCREDITED INVESTOR, IN EACH CASE IN A MINIMUM PRINCIPAL
AMOUNT OF THE SECURITIES 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 ANOTHER AVAILABLE EXEMPTION FROM THE REGISTRATION REQUIREMENTS OF THE SECURITIES
ACT, SUBJECT TO THE ISSUER’S AND THE TRUSTEE’S RIGHT PRIOR TO ANY SUCH OFFER, SALE OR
TRANSFER PURSUANT TO CLAUSES (D), (E) OR (F) TO REQUIRE THE DELIVERY OF AN OPINION OF
COUNSEL, CERTIFICATION AND/OR OTHER INFORMATION SATISFACTORY TO EACH OF THEM. THIS LEGEND
WILL BE REMOVED UPON THE REQUEST OF THE HOLDER AFTER THE RESALE RESTRICTION TERMINATION
DATE.

     (2) the Regulation S Global Note shall bear the following legend (the “Regulation S
Legend”) on the face thereof:

THIS SECURITY HAS NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE
“SECURITIES ACT”), OR THE SECURITIES LAWS OF ANY STATE OR OTHER JURISDICTION. NEITHER THIS
SECURITY NOR ANY INTEREST OR PARTICIPATION HEREIN MAY BE REOFFERED, SOLD, ASSIGNED,
TRANSFERRED, PLEDGED, ENCUMBERED OR OTHERWISE DISPOSED OF IN THE ABSENCE OF SUCH
REGISTRATION OR UNLESS SUCH TRANSACTION IS EXEMPT FROM, OR NOT SUBJECT TO, SUCH
REGISTRATION. THE HOLDER OF THIS SECURITY, BY ITS ACCEPTANCE HEREOF, AGREES ON ITS OWN
BEHALF AND ON BEHALF OF ANY INVESTOR ACCOUNT FOR WHICH IT HAS PURCHASED SECURITIES, TO
OFFER, SELL OR OTHERWISE TRANSFER SUCH SECURITY, PRIOR TO THE DATE (THE “RESALE RESTRICTION
TERMINATION DATE”) THAT IS 40 DAYS AFTER THE LATER OF THE ORIGINAL ISSUE DATE HEREOF AND THE
LAST DATE ON WHICH THE ISSUER OR ANY AFFILIATE OF THE ISSUER WAS THE OWNER OF THIS SECURITY
(OR ANY PREDECESSOR OF SUCH SECURITY), ONLY (A) TO THE ISSUER, (B) PURSUANT TO A
REGISTRATION STATEMENT THAT HAS BEEN DECLARED EFFECTIVE UNDER THE SECURITIES ACT, (C) FOR SO
LONG AS THE SECURITIES ARE ELIGIBLE FOR RESALE PURSUANT TO RULE 144A UNDER THE SECURITIES
ACT, TO A PERSON IT REASONABLY BELIEVES IS A “QUALIFIED INSTITUTIONAL BUYER” AS DEFINED IN
RULE 144A UNDER THE SECURITIES ACT THAT PURCHASES FOR ITS OWN ACCOUNT OR FOR THE ACCOUNT OF
A QUALIFIED INSTITUTIONAL BUYER TO WHOM NOTICE IS GIVEN THAT THE TRANSFER IS BEING MADE IN

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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 AN INSTITUTIONAL ACCREDITED INVESTOR ACQUIRING THE SECURITY FOR ITS
OWN ACCOUNT OR FOR THE ACCOUNT OF SUCH AN INSTITUTIONAL ACCREDITED INVESTOR, IN EACH CASE IN
A MINIMUM PRINCIPAL AMOUNT OF THE SECURITIES 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 ANOTHER AVAILABLE EXEMPTION FROM THE REGISTRATION
REQUIREMENTS OF THE SECURITIES ACT, SUBJECT TO THE ISSUER’S AND THE TRUSTEE’S RIGHT PRIOR TO
ANY SUCH OFFER, SALE OR TRANSFER PURSUANT TO CLAUSES (D), (E) OR (F) TO REQUIRE THE DELIVERY
OF AN OPINION OF COUNSEL, CERTIFICATION AND/ OR OTHER INFORMATION SATISFACTORY TO EACH OF
THEM. THIS LEGEND WILL BE REMOVED UPON THE REQUEST OF THE HOLDER AFTER THE RESALE
RESTRICTION TERMINATION DATE. BY ITS ACQUISITION HEREOF, THE HOLDER HEREOF REPRESENTS THAT
IT IS NOT A U.S. PERSON NOR IS IT PURCHASING FOR THE ACCOUNT OF A U.S. PERSON AND IS
ACQUIRING THIS SECURITY IN AN OFFSHORE TRANSACTION IN ACCORDANCE WITH REGULATION S UNDER THE
SECURITIES ACT.

     (3) Each Global Security, whether or not an Initial Security, 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 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.

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     (e) Book-Entry Provisions.

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

     (ii) Each Global Security 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 Security held on their behalf by DTC
or by the Trustee as Securities Custodian or under such Global Security, 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 Security for all purposes whatsoever. Notwithstanding the
foregoing, nothing herein shall prevent the Company, the Trustee or any agent of the Company
or the Trustee from giving effect to any written certification, proxy or other authorization
furnished by 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 Security.

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

     (v) In connection with the transfer of an entire Global Security to beneficial owners
pursuant to subsection (f) of this Section 2.1, such Global Security 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 Security, an equal
aggregate principal amount of Definitive Securities of authorized denominations.

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

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

43

 

and that ownership of a beneficial interest in such Global Security shall be required
to be reflected in a book entry.

     (f) Definitive Securities.

     (i) Except as provided below, owners of beneficial interests in Global Securities will
not be entitled to receive Definitive Securities. If required to do so pursuant to any
applicable law or regulation, beneficial owners may obtain Definitive Securities in exchange
for their beneficial interests in a Global Security upon written request in accordance with
DTC’s and the Registrar’s procedures. In addition, Definitive Securities shall be
transferred to all beneficial owners in exchange for their beneficial interests in a Global
Security if (A) DTC notifies the Company at any time that it is unwilling or unable to
continue as depositary for such Global Security 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
Security 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 Securities in fully
registered form without interest coupons.

     (ii) Any Definitive Security delivered in exchange for an interest in a Global Security
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 Security set forth under Section 2.1(d).

     (iii) In connection with the exchange of a portion of a Definitive Security for a
beneficial interest in a Global Security, the Trustee shall cancel such Definitive Security,
and the Company shall execute, and the Trustee shall authenticate and make available for
delivery, to the transferring Holder a new Definitive Security representing the principal
amount not so transferred.

     (g) OID Legend. Each Security issued with “original issue discount” as
defined in Section 1273 of the Code, whether an Initial Security, Additional Security or Exchange
Security, 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.

44

 

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

          A Security shall not be valid until an authorized signatory of the Trustee manually
authenticates the Security. The signature of the Trustee on a Security shall be conclusive
evidence that such Security has been duly and validly authenticated and issued under this
Indenture. A Security 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 Securities for original
issue on the Issue Date in an aggregate principal amount of $275,000,000, (2) subject to the terms
of this Indenture, Additional Securities for original issue in an unlimited principal amount and
(3) Exchange Securities for issue only in an Exchange Offer or upon resale under an effective Shelf
Registration Statement, and only in exchange for Initial Securities or Additional Securities of an
equal principal amount, in each case upon a written order of the Company signed by one Officer of
the Company (the “Company Order”). Such Company Order shall specify whether the Securities
will be in the form of Definitive Securities or Global Securities, the amount of the Securities to
be authenticated and the date on which the original issue of Securities is to be authenticated and
whether the Securities are to be Initial Securities, Additional Securities or Exchange Securities.

          The Trustee may appoint an agent (the “Authenticating Agent”) reasonably acceptable to
the Company to authenticate the Securities. 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 Securities
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
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 Securities 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 Securities 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 Securities 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 Securities as specified in such order for the purpose of such exchange. If
Securities 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

45

 

of
transfer of any Securities, such successor Person, at the option of the Holders but without expense
to them, shall provide for the exchange of all Securities at the time outstanding for Securities
authenticated and delivered in such new name.

     SECTION 2.3. Registrar, Paying Agent and Calculation Agent. The Company shall
maintain an office or agency where Securities may be presented for registration of transfer or for
exchange (the “Registrar”) and an office or agency where Securities may be presented for
payment (the “Paying Agent”). In addition, the Company shall appoint and maintain at all
times a Calculation Agent (the “Calculation Agent”) for purposes of calculating the
interest on the Securities, which shall initially be the Trustee. 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 Securities 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 advise the Calculation Agent in writing prior to any interest payment date
of any Additional Interest payable pursuant to the Registration Rights Agreement.

          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 Company initially appoints the Trustee as Registrar and Paying Agent and Calculation Agent
for the Securities. 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 Security
is due and payable, the Company shall deposit with the Paying Agent a sum sufficient in 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 Securities (whether such assets
have been distributed to it by the Company or other obligors on the Securities) 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

46

 

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 Securities.

     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
and shall otherwise comply with TIA § 312(a). If the Trustee is not the Registrar, or to the
extent otherwise required under the TIA, 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, and the Company and the Subsidiary
Guarantors shall otherwise comply with TIA § 312(a).

     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 two years 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 Securities (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 Security, that it
is purchasing the Security 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
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

47

 

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 Security, that it is purchasing the Security 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.

     (c) Restricted Securities Legend. Upon the transfer, exchange or replacement of
Securities not bearing a Restricted Securities Legend, the Registrar shall deliver Securities that
do not bear a Restricted Securities Legend. Upon the transfer, exchange or replacement of
Securities bearing a Restricted Securities Legend, the Registrar shall deliver only Securities that
bear a Restricted Securities Legend unless (i) Initial Securities are being exchanged for Exchange
Securities in an Exchange Offer, in which case the Exchange Securities shall not bear a Restricted
Securities Legend, (ii) an Initial Security is being transferred pursuant to the Shelf

48

 

Registration
Statement or other effective registration statement or (iii) 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. Any Additional Securities sold in a
registered offering shall not be required to bear the Restricted Securities 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 Securities.

     (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 Securities and Global Securities at the Registrar’s request.

     (ii) No service charge shall be made to a Holder for any registration of transfer or
exchange, but the Company or the Trustee may require the Holder to pay a sum sufficient to
cover any transfer tax, assessment or similar governmental charge payable 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 Security for a period beginning 15 days before the mailing of a notice of
an offer to repurchase or redeem Securities 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 Security selected for redemption.

     (iv) Prior to the due presentation for registration of transfer of any Security, the
Company, the Trustee, the Paying Agent or the Registrar may deem and treat the
person in whose name a Security is registered as the absolute owner of such Security
for the purpose of receiving payment of principal of, premium, if any, and interest on such
Security and for all other purposes whatsoever, including the transfer or exchange of such
Security, whether or not such Security 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 Securities 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 Securities surrendered upon such DTC registration of
transfer or exchange.

     (f) No Obligation of the Trustee.

     (i) The Trustee shall have no responsibility or obligation to any beneficial owner of a
Global Security, 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 Securities or with respect to

49

 

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
Securities (or other security or property) under or with respect to such Securities. All
notices and communications to be given to the Holders and all payments to be made to Holders
in respect of the Securities 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 Security).
The rights of beneficial owners in any Global Security 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 Security (including any
transfers between or among DTC participants, members or beneficial owners in any Global
Security) other than to require delivery of such certificates and other documentation or
evidence as are expressly required by, and to do so if and when expressly required by, the
terms of this Indenture, and to examine the same to determine substantial compliance as to
form with the express requirements hereof.

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

[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.
	 

	 	 	 	Floating Rate Senior Secured Notes, Series A, due 2010

Ladies and Gentlemen:

          This certificate is delivered to request a transfer of $                      principal amount of the
Floating Rate Senior Secured Notes, Series A, due 2010 (the “Securities”) of Conexant
Systems, Inc. (the “Company”).

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

          Name:                                                             

          Address:                                                            

          Taxpayer ID Number:                                        

50

 

          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 Securities, and we are acquiring the Securities 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 Securities, and we invest in or purchase securities
similar to the Securities 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 Securities 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 Securities to
offer, sell or otherwise transfer such Securities prior to the date that is two years 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 Securities (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 Securities 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
Securities 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 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 Securities for investment purposes and not for
distribution in violation of the 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 Securities 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.

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          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.
	 

	 	 	 	Floating Rate Senior Secured Notes, Series A, due 2010

Ladies and Gentlemen:

          In connection with our proposed sale of $                     aggregate principal amount of the
Floating Rate Senior Secured Notes, Series A, due 2010 (the “Securities”) 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 Securities 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;

     (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.

52

 

          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 Securities. If a mutilated Security
is surrendered to the Registrar or if the Holder claims that the Security has been lost, destroyed
or wrongfully taken, the Company shall issue and the Trustee shall authenticate a replacement
Security 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 Security 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
Security is replaced, and, in the absence of notice to the Company, any Subsidiary Guarantor or the
Trustee that such Security 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 Security or in lieu of any such destroyed, lost or
stolen Security, a new Security of like tenor and principal amount, bearing a number not
contemporaneously outstanding.

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

     Upon the issuance of any new Security 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

53

 

imposed in
relation thereto and any other expenses (including the fees and expenses of counsel and of the
Trustee) in connection therewith.

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

     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 Securities.

     SECTION 2.10. Outstanding Securities. Securities outstanding at any time are all
Securities 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 Security does not cease to
be outstanding in the event either of the Company or an Affiliate of the Company holds the
Security; 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 Securities are present at a meeting of Holders of
Securities 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 Securities 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 Security is replaced pursuant to Section 2.9 (other than a mutilated Security
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 Security is
held by a protected purchaser. A mutilated Security ceases to be outstanding upon surrender of
such Security and replacement pursuant to Section 2.9.

     Securities, 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 Securities cease to be outstanding at the time such
Securities are accepted for payment in accordance with the provisions of this Indenture.

     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 Securities (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

54

 

that
date such Securities (or portions thereof) cease to be outstanding and interest on them ceases to
accrue.

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

     SECTION 2.12. Cancellation. The Company at any time may deliver Securities to the
Trustee for cancellation. The Registrar and the Paying Agent shall forward to the Trustee any
Securities surrendered to them for registration of transfer, exchange or payment. The Trustee and
no one else shall cancel all Securities surrendered for registration of transfer, exchange, payment
or cancellation and dispose of such Securities in accordance with its internal policies and
customary procedures and shall deliver canceled Securities to the Company pursuant to written
direction by an Officer of the Company. If the Company or any Subsidiary Guarantor acquires any of
the Securities, such acquisition shall not operate as a redemption or satisfaction of the
Indebtedness represented by such Securities unless and until the same are surrendered to the
Trustee for cancellation pursuant to this Section 2.12. The Company may not issue new
Securities to replace Securities 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 Security have either been exchanged for
Definitive Securities, transferred, redeemed, repurchased or canceled, such Global Security 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 Security is exchanged for
Definitive Securities, transferred in exchange for an interest in another Global Security,
redeemed, repurchased or canceled, the principal amount of Securities represented by such Global
Security 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 Security) with respect to such Global
Security, by the Trustee or the Securities Custodian, to reflect such reduction.

     SECTION 2.13. Payment of Interest; Defaulted Interest. Interest on any Security 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 Security (or one or more predecessor Securities) 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.

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     Any interest on any Security 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 borne by the Securities (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 Securities (or their respective predecessor Securities) 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
Security 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 11.6 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 Securities (or their respective predecessor Securities) 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 Securities
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.

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

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     SECTION 2.14. Computation of Interest. Interest on the Securities 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 Securities.

     SECTION 2.15. CUSIP, Common Code and ISIN Numbers. The Company in issuing the
Securities 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 Securities or as contained in any notice of a
redemption or purchase and that reliance may be placed only on the other identification numbers
printed on the Securities, and any such redemption or purchase shall not be affected by any defect
in or omission of such 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 Securities. The Company shall promptly pay the principal of,
premium, if any, and interest on the Securities on the dates and in the manner provided in the
Securities 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
Securities, 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 Securities, 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 Securities 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 Securities, the
Subsidiary Guarantees or any other such document or instrument following the occurrence of any
Event of Default with respect to the Securities. The Company or the Subsidiary Guarantors, if any,
will agree to indemnify the Holders for any such taxes paid by such Holders.

     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.

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     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:

     (i) the Consolidated Coverage Ratio for the Company and its Restricted Subsidiaries is
at least 2.00 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 transactions relating to such Incurrence.

     (b) Section 3.2(a) will not prohibit the Incurrence of the following Indebtedness:

     (i) Indebtedness represented by (A) the Securities issued on the Issue Date, the
Subsidiary Guarantees and the related Exchange Securities and exchange guarantees issued in
a registered exchange offer pursuant to the Registration Rights Agreement, (B) any
Indebtedness (other than the Indebtedness described in clauses (ii), (iv), (v), (vi), (vii),
(viii) and (xii) of this Section 3.2(b)) outstanding on the Issue Date and (C) any
Refinancing Indebtedness Incurred in respect of any Indebtedness described in this clause
(i) or clause (xi) of this Section 3.2(b) or Incurred pursuant to this Section
3.2(a);

     (ii) the Incurrence by any Receivables Entity of Indebtedness represented by Qualified
Receivables Transactions;

     (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 the greater of (x) $10.0 million or (y) 5% of Consolidated Net
Tangible Assets, 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 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
Securities;

          (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

58

 

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)

shall be deemed, in each case, to constitute an Incurrence of such Indebtedness by the
Company or such Restricted Subsidiary, as the case may be;

     (v) Indebtedness under Hedging Obligations that are Incurred in the ordinary course of
business (and not for speculative purposes) (i) for the purpose of fixing or hedging
interest rate risk with respect to any Indebtedness Incurred in accordance with this
Indenture; (ii) for the purpose of fixing or hedging currency exchange rate risk with
respect to any currency exchanges; or (iii) 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) Non-Guarantor Restricted Subsidiaries of Indebtedness Incurred by Non-Guarantor
Restricted Subsidiaries in accordance with the provisions of this Indenture; provided that
in the event such Indebtedness that is being Guaranteed is a Subordinated Obligation or a
Guarantor Subordinated Obligation, then the related Guarantee shall be subordinated in right
of payment to the Securities or the Subsidiary Guarantee, as the case may be;

     (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 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

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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, however, that after giving 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 Coverage Ratio of the Company and the Restricted Subsidiaries
would be greater than 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) in addition to the items referred to in clauses (i) through (xiii) above,
Indebtedness of the Company and its Restricted Subsidiaries in an aggregate outstanding
principal amount which, when taken together with the principal amount of all other
Indebtedness Incurred pursuant to this clause (xiv) and then outstanding, will not exceed
$25.0 million at any time outstanding;

     (xv) Subordinated Obligations of the Company or any Subsidiary Guarantor in an
aggregate principal amount which, when taken together with the principal amount of all other
Subordinated Obligations Incurred pursuant to this clause (xv), does not exceed the greater
of (A) $25.0 million and (B) $100.0 million less the amount of any outstanding Indebtedness
represented by Qualified Receivables Transactions; provided, that no such Subordinated
Obligation is subject to a sinking fund or has a maturity date earlier than the final
maturity date of the Securities; and

     (xvi) Indebtedness of the Company or a Restricted Subsidiary to the extent the net
proceeds thereof are (A) promptly deposited to defease all outstanding Securities as

60

 

described in Section 8.1 (B) used by the Company to repurchase Securities following
a Change of Control as described in Section 3.11 or (C) used to discharge this
Indenture.

     (c) The Company will not Incur any Indebtedness under Section 3.2(b) if the proceeds
thereof are used, directly or indirectly, to refinance any Subordinated Obligations of the Company
unless such Indebtedness will be subordinated to the Securities to at least the same extent in all
material respects as such Subordinated Obligations. No Subsidiary Guarantor will Incur any
Indebtedness under Section 3.2(b) if the proceeds thereof are used, directly or indirectly,
to refinance any Guarantor Subordinated Obligations of such Subsidiary Guarantor unless such
Indebtedness will be subordinated to the obligations of such Subsidiary Guarantor under its
Subsidiary Guarantee to at least the same extent in all material respects as such Guarantor
Subordinated Obligations. No Restricted Subsidiary (other than a Subsidiary Guarantor) may Incur
any Indebtedness if the proceeds are used to refinance Indebtedness of the Company or a Subsidiary
Guarantor. 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;

     (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 shall 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 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.

     (d) 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

61

 

outstanding as of any date shall 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.

     (e) 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 shall
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 shall 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 shall 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 shall 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 may Incur pursuant to this Section 3.2 shall 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, shall 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:

     (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);

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     (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
Subordinated Obligations or Guarantor Subordinated Obligations (other than (A) Indebtedness
of the Company owing to and held by any Subsidiary Guarantor or Indebtedness of a Subsidiary
Guarantor owing to and held by the Company or any other Subsidiary Guarantor permitted under
clause (iv) of Section 3.2(b) or (B) the purchase, repurchase, redemption,
defeasance or other acquisition or retirement of Subordinated Obligations or Guarantor
Subordinated Obligations purchased in anticipation of satisfying a sinking fund obligation,
principal installment or final maturity, in each case due within one year of the date of
purchase, repurchase, redemption, defeasance or other acquisition or retirement); or

     (iv) make any Restricted Investment in any Person;

     (v) (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 shall have occurred and be continuing (or would result therefrom); or

          (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 (i), (iii), (iv), (v), (vii), (viii) 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 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
the Issue Date 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

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	 	 	 	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 Securities in compliance with the provisions of Article V
as it relates to paragraph 5 of the Securities; plus
	 
	 	(3)	 	the amount by which Indebtedness of the Company or its Restricted Subsidiaries
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,
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) any purchase, repurchase, redemption, defeasance or other acquisition or
retirement of Capital Stock, Disqualified Stock or Subordinated Obligations of the

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Company
or Guarantor Subordinated Obligations of any Subsidiary Guarantor made by 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 the substantially concurrent contribution of common Capital
Stock to the Company; provided, however, that the Net Cash Proceeds from such sale or
contribution of Capital Stock will be excluded from Section 3.3(a)(v)(C)(2);

     (iii) any purchase, repurchase, redemption, defeasance or other acquisition or
retirement of Subordinated Obligations of the Company or Guarantor Subordinated Obligations
of any Subsidiary Guarantor made by exchange for, or out of the proceeds of the
substantially concurrent sale of, Subordinated Obligations of the Company or any purchase,
repurchase, redemption, defeasance or other acquisition or retirement of Guarantor
Subordinated Obligations made by exchange for or out of the proceeds of the substantially
concurrent sale of Guarantor Subordinated Obligations that, in each case, is permitted to be
Incurred pursuant to Section 3.2 and that in each case 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 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 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,

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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)(v)(C)(2) of the preceding paragraph);

          (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 shall comply in all material
respects with the provisions of the Sarbanes Oxley Act of 2002 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 any Subordinated Obligation (a) at a purchase price not greater than
101% of the principal amount of such Subordinated Obligation 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 accordance with provisions
similar to Section 3.5; provided that, prior to or simultaneously with such
purchase, repurchase, redemption, defeasance or other acquisition or retirement, the Company
has made the Change of Control Offer or Asset Disposition Offer, as applicable, as provided
in Section 3.11 and Section 3.5, as applicable, with respect to the
Securities and has completed the repurchase or redemption of all Securities validly tendered
for payment in connection with such Change of Control Offer or Asset Disposition Offer;

     (ix) so long as no Default or Event of Default has occurred and is continuing, any
purchase or redemption of Subordinated Obligations or Guarantor Subordinated Obligations of
a Subsidiary Guarantor from Net Available Cash to the extent permitted under Section
3.5;

     (x) so long as no Default or Event of Default has occurred and is continuing, the
declaration and payment of dividends to holders of any class or series of Disqualified Stock
of the Company issued in accordance with the terms of this Indenture to the extent such
dividends are included in the definition of “Consolidated Interest Expense;” and

     (xi) so long as no default has occurred and is continuing, Restricted Payments in an
amount not to exceed $25.0 million.

     (c) The amount of all Restricted Payments (other than cash) shall 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 shall be its

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face amount
and any non-cash Restricted Payment shall 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 shall 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, 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
shall 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 shall
not be deemed a restriction on the ability to make loans or advances); or

     (iii) transfer any of its property or assets to the Company or any Restricted
Subsidiary (it being understood that such transfers shall 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 Securities, the Exchange Securities, the Subsidiary Guarantees and the
Collateral 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

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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 shall 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 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 (3) of this Section 3.4(b) 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 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;

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     (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 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 a 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 to
secure the Securities.

     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 securing
the Securities.

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     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
subsection (a) or in accordance with the Collateral 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 subsection (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 to purchase the maximum principal amount of Securities 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
Securities plus accrued and unpaid interest to the date of purchase, in accordance with the
procedures set forth in this Indenture in minimum denominations of $1,000 and integral multiples of
$1,000 in excess thereof. To the extent that the aggregate amount of Securities 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 other covenants contained in this Indenture. If the aggregate
principal amount of Securities surrendered by Holders thereof exceeds the amount of Excess
Collateral Proceeds, the Securities to be purchased shall be selected on a pro rata basis on the
basis of the aggregate principal amount of tendered Securities. 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
to purchase the maximum principal amount of Securities 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 Securities plus accrued and
unpaid interest to the date of purchase, in accordance with the
procedures set forth in this Indenture in minimum denominations of $1,000 and integral
multiples of $1,000 in excess thereof. To the extent that the aggregate amount of Securities
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 this Indenture; 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 Securities
surrendered by holders thereof exceeds the amount of Excess Collateral Proceeds used to make such
Early Collateral Disposition Offer, the Securities to be purchased shall be selected on a pro rata
basis on the basis of the aggregate principal amount of tendered Securities. Upon

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completion of
such Early Collateral Disposition Offer, any Securities acquired by the Company shall be canceled
and will not be used to secure the Securities.

     (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 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
Securities 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 (other than any
Disqualified Stock or Subordinated Obligations) or Indebtedness of a Restricted Subsidiary
(other than any Disqualified Stock or Guarantor Subordinated Obligations) (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

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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.

     Any Net Available Cash from Asset Dispositions (other than Asset Dispositions of Collateral)
that are not applied or invested as provided in this subsection (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 and, to the extent required by the terms of other Pari
Passu Indebtedness, to all holders of other Pari Passu Indebtedness outstanding with similar
provisions requiring the Company to make an offer to purchase such Pari Passu Indebtedness with the
proceeds from any such Asset Disposition, to purchase the maximum principal amount of Securities
and any such Pari Passu Indebtedness 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 Securities and Pari Passu Indebtedness plus accrued and unpaid interest to
the date of purchase, in accordance with the procedures set forth in this Indenture or the
agreements governing the Pari Passu Indebtedness, as applicable, in each case in minimum
denominations of $1,000 and integral multiples of $1,000 in excess thereof. To the extent that the
aggregate amount of Securities and Pari Passu Indebtedness, 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 other covenants contained in this Indenture. If the aggregate
principal amount of Securities surrendered by holders thereof and other Pari Passu Indebtedness
surrendered by holders or lenders, collectively, exceeds the amount of Excess Proceeds as set forth
in an Officers’ Certificate, the Trustee shall select the Securities to be purchased on a pro rata
basis on the basis of the aggregate principal amount of tendered Securities and the agent for the
Pari Passu Indebtedness shall select the Pari Passu Indebtedness to be purchased on a pro rata
basis on the basis of the aggregate principal amount of tendered Pari Passu Indebtedness. 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

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Offer”) to all Holders and, to the extent required by the terms of other Pari Passu
Indebtedness, to all holders of other Pari Passu Indebtedness outstanding with similar provisions
requiring the Company to make an offer to purchase such Pari Passu Indebtedness with the proceeds
from any such Asset Disposition, to purchase the maximum principal amount of Securities and any
such Pari Passu Indebtedness 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 Securities and Pari Passu Indebtedness plus accrued and unpaid interest to
the date of purchase, in accordance with the procedures set forth in this Indenture or the
agreements governing the Pari Passu Indebtedness, as applicable, in each case in minimum
denominations of $1,000 and integral multiples of $1,000 in excess thereof. To the extent that the
aggregate amount of Securities and Pari Passu Indebtedness, 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 other covenants contained in this
Indenture; 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 Securities surrendered by holders thereof and other Pari Passu Indebtedness surrendered
by holders or lenders, collectively, exceeds the amount of Excess Proceeds used to make such Early
Asset Disposition Offer, the Trustee shall select the Securities to be purchased on a pro rata
basis on the basis of the aggregate principal amount of tendered Securities and the agent for the
Pari Passu Indebtedness shall select the Pari Passu Indebtedness to be purchased on a pro rata
basis on the basis of the aggregate principal amount of tendered Pari Passu Indebtedness. Upon
completion of such Early Asset Disposition Offer, any Securities acquired by the Company shall be
canceled and will not be used to secure the Securities.

     (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 Securities and Pari Passu Indebtedness required to be
purchased pursuant to Section 3.5(d) (the “Asset Disposition Offer Amount”) or, if
less than the Asset Disposition Offer Amount has been so validly tendered, all Securities and Pari
Passu Indebtedness, 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 Security is registered at the close of
business on such record date, and no additional interest will be payable to holders who tender
Securities 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 Securities (and Pari Passu Indebtedness required to be purchased pursuant

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Section
3.5(d)) or portions of Securities (and Pari Passu Indebtedness required to be purchased
pursuant to Section 3.5(d)) 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 Securities (and Pari Passu Indebtedness required to be
purchased pursuant to Section 3.5(d)) so validly tendered and not properly withdrawn, in
each case in minimum denominations of $1,000 and integral multiples of $1,000 in excess thereof.
The Company will deliver to the Trustee an Officers’ Certificate stating that such Securities 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 the Pari Passu Indebtedness required to be purchased pursuant
to Section 3.5(d). 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 holder or lender of such Pari Passu
Indebtedness an amount equal to the purchase price of the Securities, such Pari Passu Indebtedness
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 Security, and the
Trustee, upon delivery of an Officers’ Certificate from the Company will authenticate and mail or
deliver such new Security to such holder, in a principal amount equal to any unpurchased portion of
the Security surrendered; provided that each such new Security will be in a principal amount of
$2,000 or an integral multiple of $1,000 in excess thereof. In addition, the Company will take any
and all other actions required by the agreements governing the Pari Passu Indebtedness required to
be purchased pursuant Section 3.5(d). Any Security 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

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     (iv) in the event such Asset Swap involves the transfer by the Company or any
Restricted Subsidiary of Collateral, (i) any Related Business Assets received by the Company
or any Restricted Subsidiary shall be pledged as Collateral securing the Securities and (ii)
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
subsection (1) 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 Securities 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
(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 Securities pursuant to Section 3.6; and

     (d) the Sale/Leaseback Transaction is treated as an Asset Disposition and all of the
conditions of 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.

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     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

     (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;

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     (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;

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

     (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 shall comply
in all material respects with all provisions of the Sarbanes-
Oxley Act of 2002 and the rules and regulations promulgated in connection therewith
relating to the provision of any such loans and advances;

     (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;

     (x) any transactions between or among Jazz and the Company and its Restricted
Subsidiaries pursuant to agreements in effect on the Issue Date or in the ordinary course of
business; and

     (xi) any transactions between or among Mindspeed and the Company and its Restricted
Subsidiaries pursuant to agreements in effect on the Issue Date in the ordinary course of
business.

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

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     (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 hereof. 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 Registration Rights Agreement, the Collateral
Documents and the Liens, if any, on the Collateral pledged by such Subsidiary Guarantor pursuant to
the Collateral Documents shall be released with respect to the Securities 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.

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

     (b) Within 45 days following any Change of Control, unless the Company has exercised its right
to redeem all of the Securities as described in Article V, 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 Securities at a purchase price in cash equal to 101%
of the principal amount of such Securities plus accrued and unpaid interest, if any, to the
date of purchase (subject to the right of holders of record on a record date to receive
interest on the relevant interest payment date) (the “Change of Control Payment”);

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     (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 Securities repurchased.

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

     (i) accept for payment all Securities or portions of Securities (in minimum
denominations of $1,000 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 Securities or portions of Securities so tendered; and

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

     (d) The paying agent will promptly mail to each holder of Securities so tendered the Change of
Control Payment for such Securities, and the Trustee will promptly authenticate and
mail (or cause to be transferred by book entry) to each holder a new Security equal in
principal amount to any unpurchased portion of the Securities surrendered, if any; provided that
each such new Security 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 Security 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.

     (f) The Change of Control provisions described in this Section 3.11 will be applicable
whether or not any other provisions of this Indenture are applicable. Except as described above
with respect to a Change of Control, this Indenture does not contain provisions that permit the
holders to require that the Company repurchase or redeem the Securities in the event of a takeover,
recapitalization or similar transaction.

     (g) Prior to mailing a Change of Control Offer, and as a condition to such mailing, (1) the
requisite holders of each issue of Indebtedness issued under an indenture or other agreement that
would be violated by such payment shall have consented to such Change of Control Offer being made
and waived the event of default, if any, caused under such indenture or other agreement by the
Change of Control or (2) the Company shall have repaid, or cause to have been repaid, all
outstanding Indebtedness issued under an indenture or other agreement that would be violated by a
payment to the Holders under a Change of Control Offer or (3) the Company shall have offered to
repay all such Indebtedness, made payment to the holders of such Indebtedness

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that accept such
offer and obtained waivers of any event of default from the remaining holders of such Indebtedness.

     (h) The Company covenants to effect such repayment or obtain such consent and/or waiver within
30 days following any Change of Control, it being a Default of the Change of Control provisions of
this Indenture if the Company fails to comply with Section 3.11.

     (i) 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 Securities validly tendered and not withdrawn
under such Change of Control Offer.

     (j) 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 Securities 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
Securities, the annual 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 Securities 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 shall 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

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notice of any
information contained therein or determinable from information contained therein, including the
Company’s compliance with any of their covenants hereunder (as to which the Trustee is entitled to
conclusively rely exclusively on an Officers’ Certificate).

     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, premium, if any and interest on the Securities on a senior secured
basis. In addition, the Company will cause such Material Restricted Subsidiary to become a party to
the Collateral Documents and take such actions necessary or advisable to grant to the Collateral
Agent, for the benefit of itself and the Holders, a perfected security interest in any Collateral
held by such Material Restricted Subsidiary, 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 the provisions of this
Indenture described in Section 10.1.

     SECTION 3.14. Maintenance of Office or Agency. The Company shall maintain an office or
agency where the Securities may be presented or surrendered for payment, where, if applicable, the
Securities may be surrendered for registration of transfer or exchange and where notices and
demands to or upon the Company in respect of the Securities and this Indenture may be served. The
agency of The Bank of New York 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 Securities 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

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Trustee of
any such designation or rescission and any change in the location of any such other office or
agency.

     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 Securities, the Subsidiary
Guarantees or the Collateral 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. The Company also shall comply with TIA §
314(a)(4).

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     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.

     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 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 the obligations of the
Company under the Securities and this Indenture and will expressly assume, by written
agreement, all the obligations of the Company under the Registration Rights Agreement and
the Collateral Documents (as applicable) and shall 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 shall have
occurred and be continuing;

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

          (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

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          (B) be able to incur at least $1.00 of additional Indebtedness pursuant to Section
3.2(a);

     (iv) each Subsidiary Guarantor (unless it is the other party to the transactions above,
in which case clause (i) shall apply) shall have by supplemental indenture confirmed that
its Subsidiary Guarantee shall apply to such Person’s obligations in respect of this
Indenture and the Securities and shall have by written agreement confirmed that its
obligations under the Registration Rights Agreement and the Collateral Documents shall
continue to be in effect and shall 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 shall 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, shall 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 Collateral 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 Securities.

     (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).

     (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:

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     (i) (A) if such entity remains a Subsidiary Guarantor, 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 the
Company under the Registration Rights Agreement and the related Collateral Documents and
shall 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 of Event of Default shall 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 Securities may be redeemed, as a whole or from time to
time in part, subject to the conditions and at the redemption prices specified in paragraph 5 of
the form of Securities set forth in Exhibit A and Exhibit B 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 Securities 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 Securities 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 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 Securities to be redeemed and shall deliver to the Trustee such documentation and records
as shall enable the Trustee to select the Securities

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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 Securities to Be Redeemed. If less than all the
Securities are to be redeemed at any time pursuant to an optional redemption, the particular
Securities to be redeemed shall be selected not more than 60 days prior to the Redemption Date by
the Trustee, from the outstanding Securities not previously called for redemption, in compliance
with the requirements of the principal national securities exchange, if any, on which such
Securities are listed, or, if such Securities are not so listed, on a pro rata basis, by lot or by
such other method as the Trustee in its sole discretion 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 Securities; provided, however, that no such
partial redemption shall reduce the portion of the principal amount of a Security not redeemed to
less than $1,000 and no Securities 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 Securities selected for
redemption and, in the case of any Securities selected for partial redemption, the method it has
chosen for the selection of Securities 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 Securities shall relate, in the case of any Security redeemed or to be
redeemed only in part, to the portion of the principal amount of such Security 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 Securities 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 Securities are to be redeemed, the identification of the
particular Securities (or portion thereof) to be redeemed, as well as the aggregate principal
amount of Securities to be redeemed and the aggregate principal amount of Securities to be
outstanding after such partial redemption,

     (d) in case any Security is to be redeemed in part only, the notice which relates to such
Security shall state that on and after the Redemption Date, upon surrender of such Security,

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the
Holder will receive, without charge, a new Security or Securities 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 Security, or the portion thereof, to be redeemed, and, unless the Company defaults in
making the redemption payment, that interest on Securities called for redemption (or the portion
thereof) will cease to accrue on and after said date,

     (f) the place or places where such Securities 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 Securities 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 Securities, and

     (j) the paragraph 5 of the Securities pursuant to which the Securities 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 Securities which are to be redeemed on that date, other
than Securities or portions of Securities 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. Securities Payable on Redemption Date. Notice of redemption having been
given as aforesaid, the Securities or portions of Securities 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 Securities 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 Securities to the Redemption Date. Upon surrender of
any such Security for redemption in accordance with said notice, such Security 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 Security 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 Securities.

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     SECTION 5.8. Securities Redeemed in Part. Any Security 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 Security at the expense of the
Company, a new Security or Securities, 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 Security so surrendered, provided, that each such new Security will be in a
principal amount of $1,000 or an integral multiple 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, or Additional Interest
(if required by the Registration Rights Agreement) with respect to, any Security;

     (ii) default in the payment of principal of or premium, if any, on any Security 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;

     (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 (the
“cross acceleration provision”);

          (C) 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

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been a payment 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 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 (the “judgment default provision”);

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

     (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) the security interest under the Collateral
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 Agent that was
required to be taken or not taken by the Collateral Agent pursuant to the Collateral
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) the security interest created under the Collateral 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
Collateral 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) hereof, 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 Securities.

     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
Securities notify the Company of the 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
described in clause (vii) of Section 6.1(a)) occurs and is continuing, the Trustee by
notice to the Company, or the Holders of at least 25% in principal amount of the outstanding
Securities by

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notice to the Company and the Trustee, may, and the Trustee at the request of such
Holders shall, declare the principal of, premium, if any, and accrued and unpaid interest, if any,
on all the Securities 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 Securities because an Event of Default
described in clause (v) of Section 6.1(a) has occurred and is continuing, the declaration
of acceleration of the Securities 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(a)
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 Securities would not conflict with any judgment
or decree of a court of competent jurisdiction and (2) all existing Events of Default, except
nonpayment of principal, premium or interest on the Securities that became due solely because of
the acceleration of the Securities, have been cured or waived.

     If an Event of Default described in clause (vii) of Section 6.1(a) occurs and is
continuing, the principal of, premium, if any, and accrued and unpaid interest on all the
Securities 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 Securities may waive all past
defaults (except with respect to nonpayment of principal, premium or interest) and rescind any such
acceleration with respect to the Securities 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 Securities that have become due solely by such declaration of acceleration, 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.

     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 Securities or to enforce the performance of
any provision of the Securities or this Indenture.

     The Trustee may maintain a proceeding even if it does not possess any of the Securities or
does not produce any of them in the proceeding. A delay or omission by the Trustee or any 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 Securities 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, Securities), 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 Security, and (b) rescind any such acceleration with respect to the
Securities 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 Securities 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, the Holders of a
majority in principal amount of the outstanding Securities may direct the time, method and place of
conducting any proceeding for any remedy available to the Trustee or the Collateral Agent of
exercising any trust or power conferred on the Trustee or Collateral Agent. The Trustee, however,
may refuse to follow any direction that conflicts with law or this Indenture, the Securities, the
Subsidiary Guarantees or the Collateral 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 or the Collateral Agent, if an Event of Default occurs and is
continuing, the Trustee or the
Collateral Agent will be under no obligation to exercise any of the rights or powers under
this Indenture, the Securities, the Subsidiary Guarantees or the Collateral Documents at the
request or direction of any of the Holders unless such Holders have offered to the Trustee or the
Collateral Agent reasonable indemnity or security against any loss, liability or expense.

     Except to enforce the right to receive payment of principal, premium, if any, or interest when
due, no Holder may pursue any remedy with respect to this Indenture, the Securities, the Collateral
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 principal amount of the outstanding Securities have requested
the Trustee to pursue the remedy,

     (c) such 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 principal amount of the outstanding Securities 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 Securities held by such Holder, on or
after the respective due dates expressed in the Securities, 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(a) 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 Trustee and Collateral Agent for amounts due under Section 7.7 and to
the Collateral Agent for any other amounts due under the Collateral Documents;

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

     THIRD: to the Company, 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 Securities.

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

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     (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.

     (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
and to the provisions of the TIA.

     (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.

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     (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 Securities shall be full
and complete authorization and protection from liability in respect of any action taken, omitted or
suffered by it hereunder in good faith and in accordance with the advice or opinion of such
counsel.

     (f) The Trustee shall 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 Securities and this
Indenture.

     (g) In the event the Trustee receives inconsistent or conflicting requests and indemnity from
two or more groups of Holders of Securities, each representing less than a majority in aggregate
principal amount of the Securities 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
Securities and this Indenture.

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     (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.

     (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 Securities 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 Sections 7.10 and 7.11. In
addition, the Trustee shall be permitted to engage in transactions with the Company; provided,
however, that if the Trustee acquires any conflicting interest, as defined in TIA § 310(b), 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 Securities, shall not be
accountable for the Company’s use of the proceeds from the sale of the Securities, 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 Securities or in the Securities 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 Security, 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. Reports by Trustee to Holders. As promptly as practicable after each May
15th following the date of this Indenture beginning May 15, 2007, and in any event prior to

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July
15th in each year, the Trustee shall mail to each Holder a brief report dated as of such mail date
that complies with TIA § 313(a) if and to the extent required thereby. The Trustee also shall
comply with TIA § 313(b) and TIA § 313(c).

     A copy of each report at the time of its mailing to Holders shall be filed with the SEC and
each stock exchange (if any) on which the Securities are listed. The Company agrees to notify
promptly the Trustee whenever the Securities become listed on any stock exchange and of any
delisting thereof and the Trustee shall comply with TIA § 313(d).

     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
Agent from time to time reasonable compensation for the Trustee’s acceptance of this Indenture and
services hereunder and the Collateral Agent’s acceptance of the Collateral Documents and services
thereunder, respectively, as the Company and the Trustee or the Collateral Agent, 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 Agent
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 Agent, 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 Agent’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.

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     To secure the Company’s and the Subsidiary Guarantors’ payment obligations in this Section
7.7, each of the Trustee and the Collateral Agent shall have a lien prior to the Securities on
all money or property held or collected by the Trustee or Collateral Agent other than money
or property held in trust to pay principal of and interest on particular Securities. Each of
the Trustee’s and Collateral Agent’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).

     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 Agent incurs expenses after the occurrence of a
Default specified in clause (vii) of Section 6.1(a) 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 Securities
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 Securities 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
Securities may petition, at the Company’s expense, any court of competent jurisdiction for the
appointment of a successor Trustee.

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     If the Trustee fails to comply with Section 7.10, unless the Trustee’s duty to resign
is stayed as provided in TIA § 310(b), any Holder, who has been a bona fide holder of a Security
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.

     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 Securities 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 Securities so authenticated; and in
case at that time any of the Securities shall not have been authenticated, any successor to the
Trustee may authenticate such Securities 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 Securities 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 that satisfies the requirements of TIA § 310 in every respect. 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. The Trustee shall comply with TIA § 310(b); provided, however, that
there shall be excluded from the operation of TIA § 310(b)(1) any indenture or indentures under
which other securities or certificates of interest or participation in other securities of the
Company are outstanding if the requirements for such exclusion set forth in TIA § 310(b)(1) are
met.

     SECTION 7.11. Preferential Collection of Claims Against the Company. The Trustee
shall comply with TIA § 311(a), excluding any creditor relationship listed in TIA § 311(b). A
Trustee who has resigned or been removed shall be subject to TIA § 311(a) to the extent indicated.

     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

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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 Securities (whether such sums have been paid to it by the
Company or by any obligor on the Securities) in trust for the benefit of Holders of the Securities
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

     (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 Securities) in the payment of any installment of the
principal of, premium, if any, or interest on, the Securities when the same shall be due and
payable.

ARTICLE VIII

DISCHARGE OF INDENTURE; DEFEASANCE

     SECTION 8.1. Discharge of Liability on Securities; Defeasance.

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

     (i) either:

          (A) all Securities that have been authenticated and delivered, except lost, stolen or
destroyed Securities that have been replaced or paid, and all Securities 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 Securities 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 Securities not delivered to the Trustee for cancellation for
principal and premium, if any, and accrued interest to the date of maturity or redemption;

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     (ii) no Bankruptcy Law Event of Default or other Default or Event of Default that would
cause the repayment of the Securities 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 Securities 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.

     (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 Securities 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(a)(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 Securities 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 Securities, 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 Securities, this Indenture, and the Collateral
Documents and (y) each Subsidiary Guarantor shall be deemed to have satisfied its
obligations under Article X and XI and any Collateral Documents to which it
is a party (and the Trustee and Collateral Agent, 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 described in Section 8.2
hereof, and as more fully set forth in such Section, payments in respect of the principal of
and interest and Additional Interest, if any, on such Securities when such payments are due,
(B) the Company’s obligations with respect to such Securities 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 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

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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 Collateral 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 Collateral Documents to which it is a party, each with respect to the
outstanding Securities on and after the date the conditions set forth in Section 8.2
are satisfied (hereinafter, “Covenant Defeasance”), and the Securities 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 Securities shall not be deemed outstanding for accounting
purposes). For this purpose, Covenant Defeasance means that, with respect to the
outstanding Securities, 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 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 Security shall be unaffected thereby.

     If the Company exercises its legal defeasance option, payment of the Securities 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
Securities may not be accelerated because of an Event of Default specified under Section
6.1(a)(iii) (only with respect to Section 4.1(a)(iii)), 6.1(a)(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(a)(v) (with respect only to Significant Subsidiaries), 6.1(a)(vi) or
6.1(a)(ix).

     Upon satisfaction of the conditions set forth herein and upon request of the Company, the
Trustee and the Collateral Agent 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 Securities have been paid in full (or
funds sufficient therefor have been deposited as provided in Section 8.1(a)(i)(B) hereof).
After the Securities 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 Securities have been paid in full. After the
Securities have been paid in full, the Company’s obligations under Sections 7.7,
8.5 and 8.6 shall survive such defeasance.

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     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 Securities on the Stated
Maturity of the Securities or on the applicable redemption date, as the case may be, and the
Company must specify whether the Securities 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

     (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 shall 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) 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

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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.

     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 Securities to
the Holders of the Securities of all sums due in respect of the payment of principal of, premium,
if any, and accrued interest on the Securities.

     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 Securities 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 Securities.

     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 Securities 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 Securities 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 Securities
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.

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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 Securities, the Subsidiary Guarantees or
the Collateral Documents without the consent of any Holder to:

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

     (b) provide for uncertificated Securities in addition to or in place of certificated
Securities (provided that the uncertificated Securities are issued in registered form for purposes
of Section 163(f) of the Code, or in a manner such that the uncertificated Securities 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 Securities and Subsidiary Guarantees under this Indenture, the Securities, the
Subsidiary Guarantees, the Registration Rights Agreement and the Collateral 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
Securities or that does not adversely affect the legal rights of any such holder under this
Indenture, the Securities, the Subsidiary Guarantees or the Collateral Documents;

     (e) provide for the issuance of Additional Securities and Exchange Securities 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 Securities, the Subsidiary Guarantees or the
Collateral Documents to any provision of the “Description of notes” section of the Offering
Memorandum 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 Securities, the Subsidiary
Guarantees or the Collateral Documents;

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

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

     (j) add additional Collateral to secure the Securities;

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

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     (l) comply with requirements of the SEC in order to effect or maintain the qualification of
this Indenture under the Trust Indenture Act;

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

     (n) provide for the accession or succession of any parties to the Collateral Documents (and
other amendments that are administrative or ministerial in nature) in connection with an amendment,
renewal, extension, substitution, refinancing, restructuring, replacement, supplementing or other
modification from time to time of any agreement or action that is not prohibited by 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 Securities, the Subsidiary Guarantees or the
Collateral Documents may be amended or supplemented with the consent of the holders of at least a
majority in aggregate principal amount of the Securities then outstanding (including, without
limitation, consents obtained in connection with a purchase of, or tender offer or exchange offer
for, Securities), and any existing Default or Event of Default or compliance with any provision of
this Indenture or the Securities or the Subsidiary Guarantees may be waived with the consent of the
Holders of a majority in aggregate principal amount of the then outstanding Securities (including,
without limitation, consents obtained in connection with a purchase of, or tender offer or exchange
offer for, Securities).

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

     (a) reduce the principal amount of Securities 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 Security
or alter the provisions with respect to the redemption of the Securities;

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

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

     (e) make any Security payable in currency other than that stated in the Securities;

     (f) make any change in the provisions of this Indenture relating to waivers of past Defaults
or the rights of holders of Securities to receive payments of principal of, or interest or

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premium,
if any, on, the Securities or to institute suit for the enforcement of any payment on or with
respect to such Holder’s Securities;

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

     (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;

     (i) modify any Collateral Document or the provisions in this Indenture dealing with the
Collateral Documents or application of trust moneys in any manner adverse to the Holders or
otherwise release any Collateral other than in accordance with this Indenture and the Collateral
Documents; or

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

     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 Securities given in connection with a purchase,
tender or exchange of such Holder’s Securities 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. Compliance with Trust Indenture Act. Every amendment or supplement to
this Indenture or the Securities shall comply with the TIA as then in effect.

     SECTION 9.4. Revocation and Effect of Consents and Waivers. A consent to an amendment, supplement or a waiver by a Holder of a Security shall bind the
Holder and every subsequent Holder of that Security or portion of the Security that evidences the
same debt as the consenting Holder’s Security, even if notation of the consent or waiver is not
made on the Security. Any such Holder or subsequent Holder may revoke the consent or waiver as to
such Holder’s Security or portion of the Security 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 (j) 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 Securities. 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

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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 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 Securities. If an amendment, supplement or
waiver changes the terms of a Security, the Trustee may require the Holder of the Security to
deliver it to the Trustee. The Trustee may place an appropriate notation on the Security 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 Security shall issue and the Trustee shall authenticate
a new Security that reflects the changed terms. Failure to make the appropriate notation or to
issue a new Security 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 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 Securities 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 Securities 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

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nonpayment. Each
Subsidiary Guarantor waives (to the extent permitted by law) notice of any default under the
Securities or the Guarantor Obligations.

     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
Securities, the other Securities 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 Securities, the other Securities 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

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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).

     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) Upon the sale or disposition of a Subsidiary Guarantor (by merger, consolidation, the sale
of its Capital Stock (such that it is not a direct or indirect Subsidiary of the Company) or the
sale of all or substantially all of its assets (other than by lease)), and whether or not the
Subsidiary Guarantor is the surviving corporation in such transaction, to or with a Person which is
not the Company or a Restricted Subsidiary of the Company (other than a Receivables Entity), such
Subsidiary Guarantor will be automatically released from all its obligations under this Indenture
and its Subsidiary Guarantee, the Registration Rights Agreement and any Collateral Documents to
which it is a party and such Subsidiary Guarantee will terminate; provided, however, that the sale
or other disposition is in compliance with this Indenture, including Sections 3.5,
3.9 and 4.1.

     (c) Each Subsidiary Guarantor shall be deemed released from all its obligations under this
Indenture, the Registration Rights Agreement and the Collateral Documents to which it is a party
and such Subsidiary Guarantee shall terminate (x) upon the legal defeasance of the Securities
pursuant to the provisions of Article VIII hereof or (y) in accordance with Section
3.13 of this Indenture.

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     (d) Each Subsidiary Guarantor shall be released from all of its obligations under this
Indenture, its Subsidiary Guarantee, the Registration Rights Agreement and the Collateral Documents
to which it is a party if the Company designates such Subsidiary Guarantor as an Unrestricted
Subsidiary and such designation complies with the other applicable provisions of this Indenture.

     (e) Each Subsidiary Guarantor shall be released from all of its obligations under this
Indenture, its Subsidiary Guarantee, the Registration Rights Agreement and the Collateral Documents
to which it is a party upon satisfaction and discharge of this
Indenture pursuant to Section
8.1(a).

     (f) 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 11.6.

     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.

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     (a) The due and punctual payment of the principal of, premium, if any, and interest (including
Additional Interest) on the Securities and 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 Securities 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 Securities and the Guarantees
thereof and the Collateral Documents, shall be secured by (i) first-priority Liens and security
interests in the Collateral, in each case subject to Permitted Liens, as and when provided in the
Collateral 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 Collateral
Documents hereafter delivered as required or permitted by this Indenture and the Collateral
Documents. The Company and the Subsidiary Guarantors hereby agree that the Collateral Agent shall
hold the Collateral in trust for the benefit of itself all of the Holders, the Trustee and holders
of Pari Passu Indebtedness, in each case pursuant to the terms of the Collateral Documents and the
Collateral Agent is hereby authorized to execute and deliver the Collateral Documents.

     (b) The Trustee and each Holder, by its acceptance of any Securities and the Guarantees
thereof, consents and agrees to the terms of the Collateral 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 Agent to perform its obligations and exercise its rights under the Collateral Documents
in accordance therewith.

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

     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 Agent holds, for the benefit of the
Collateral Agent, the Holders, the Trustee and the holders of any Pari Passu Secured Indebtedness,
duly created, enforceable and perfected first-priority Liens and security interests in the
Collateral (subject to Permitted Liens).

     (b) 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 this Indenture or by the Collateral Documents, including with respect to after-acquired
Collateral. If the Company or such Subsidiary Guarantor fails to do so, the Collateral Agent is
hereby irrevocably authorized and empowered, with full power of substitution, to execute,
acknowledge and deliver such Collateral Documents, instruments, certificates, notices

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and other
documents and, subject to the provisions of the Collateral 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 Agent 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 will otherwise comply with the provisions of TIA §314(b). Promptly after the
effectiveness of this Indenture, to the extent required by the TIA, the Company shall deliver the
opinion(s) required by Section 314(b)(1) of the TIA. Subsequent to the execution and delivery of
this Indenture, to the extent required by the TIA, the Company shall furnish to the Trustee on or
prior to each anniversary of the Issue Date, an Opinion of Counsel, dated as of such date, stating
either that (i) in the opinion of such counsel, all action has been taken with respect to any
filing, re-filing, recording or re-recording with respect to the Collateral as is necessary to
maintain the Lien on the Collateral in favor of the Holders or (ii) in the opinion of such counsel,
that no such action is necessary to maintain such Lien.

     (d) To the extent applicable, the Company will cause Section 313(b) of the Trust Indenture
Act, relating to reports, and Section 314(d) of the Trust Indenture Act, relating to the
release of property and the substitution therefor of any property to be pledged as Collateral
for the Securities, to be complied with. Any certificate or opinion required by Section 314(d) of
the Trust Indenture Act may be made by an Officer of the Company except in cases where Section
314(d) of the Trust Indenture Act requires that such certificate or opinion be made by an
independent engineer, appraiser or other expert, who shall be reasonably satisfactory to the
Trustee. Notwithstanding anything to the contrary in this paragraph, the Company will not be
required to comply with all or any portion of Section 314(d) of the Trust Indenture Act if it
determines, in good faith based on an Opinion of Counsel (which opinion shall also be delivered to
the Trustee), that under the terms of Section 314(d) of the Trust Indenture Act or any
interpretation or guidance as to the meaning thereof of the SEC and its staff, including “no
action” letters or exemptive orders, all or any portion of Section 314(d) is inapplicable.

     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
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 the Company or such Subsidiary Guarantor shall 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 Agent a perfected security interest, subject only to
Permitted Liens, in such after-acquired property and to have such after-acquired property 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.

     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 Agent and the Holders 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,

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redeem,
defease or otherwise acquire or retire any Indebtedness of any Person, other than as permitted by
this Indenture, the Securities and the Collateral 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 Pari Passu Indebtedness that requires the proceeds received from any sale of Collateral
to be applied, in priority or in parity with the Securities (and any Pari Passu Indebtedness), to
repay, redeem, defease or otherwise acquire or retire any Indebtedness of any Person, other than as
permitted by this Indenture, the Securities, the Subsidiary Guarantees and the Collateral
Documents. Proceeds received from the destruction or condemnation of the Collateral or from
eminent domain proceedings shall be deposited into a Collateral Account to be
invested in Additional Assets (which may include performance of a Restoration of the
Collateral). 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. Real Estate Mortgages and Filings. With respect to any fee interest in
any real property (individually and collectively, the “Premises”) owned by the Company or a
Subsidiary Guarantor on the Issue Date or acquired by the Company or a Subsidiary Guarantor after
the Issue Date:

     (a) the Company shall deliver to the Collateral Agent, as mortgagee or beneficiary, as
applicable, fully executed counterparts of Mortgages, each dated as of the Issue Date (or as soon
as practical thereafter) or the date of acquisition of such property, as the case may be, duly
executed by the Company or the applicable Subsidiary Guarantor, together with evidence of the
completion (or satisfactory arrangements for the completion) of all recordings and filings of such
Mortgage (and payment of any taxes or fees in connection therewith) as may be necessary to create a
valid, perfected Lien, subject to Permitted Liens, against the properties purported to be covered
thereby;

     (b) the Collateral Agent shall have received mortgagee’s title insurance policies in favor of
the Collateral Agent, as mortgagee for the ratable benefit of itself, the Holders of the Securities
and holders of any Pari Passu Secured Indebtedness in the amounts and in the form necessary, with
respect to the property purported to be covered by such Mortgage, to insure that title to such
property is marketable and that the interests created by the Mortgage constitute valid Liens
thereon free and clear of all Liens, defects and encumbrances, other than Permitted Liens, and such
policies shall also include, to the extent available, such other necessary endorsements and shall
be accompanied by evidence of the payment in full of all premiums thereon; and

     (c) the Company shall, or shall cause its Subsidiary Guarantors to, deliver to the Collateral
Agent (i) with respect to each of the covered Premises owned on the Issue Date, such filings,
surveys (or any updates or affidavits that the title company may reasonably require in

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connection
therewith), local counsel opinions and fixture filings, along with such other documents,
instruments, certificates and agreements, as the Initial Purchasers and their counsel shall
reasonably request, and (ii) with respect to each of the covered Premises acquired after the Issue
Date, such filings, surveys, instruments, certificates, agreements and/or other documents necessary
to comply with Sections 11.7(a) and 11.7(b) above and to perfect the Collateral Agent’s
security interest in such acquired covered Premises, together with such local counsel opinions
concerning perfection of such security interest as the Collateral Agent may reasonably request
(acting upon the instructions of the Holders given in accordance with the Collateral
Documents and without any obligation on the part of the Collateral Agent to request such
opinions without instructions from such Holders).

     The mortgages, title insurance policies, filings, surveys, opinions and other documents
referred to in Sections 11.7(a) through 11.7(c) above with respect to each of the covered
Premises owned on the Issue Date shall be delivered or furnished to the Collateral Agent, as and
when required under the Collateral Documents.

     SECTION 11.8. Release of Liens on the Collateral.

     (a) The Liens on the Collateral will be released with respect to the Securities and the
Subsidiary Guarantees:

     (i) in whole, upon payment in full of the principal of, accrued and unpaid interest,
including Additional Interest, and premium, if any, on the Securities;

     (ii) in whole, upon satisfaction and discharge of this Indenture in accordance with
Section 8.1(a);

     (iii) in whole, upon a legal defeasance as set forth in Article VIII;

     (iv) in part, as to any property constituting Collateral (A) that is sold or otherwise
disposed of by the Company or any of its Restricted Subsidiaries in a transaction permitted
by Section 3.5 or by the Collateral Documents, to the extent of the interest sold or
disposed of, (B) that is cash or Net Available Cash withdrawn from a Collateral Account for
any one or more purposes permitted by Section 3.5(a); (C) that is of the nature
described in clauses (1), (4), (5), (7), (8), (10), (11) or (16) of the proviso in the
definition of “Asset Disposition,” and is subject to a disposition as therein provided, (D)
that is owned or at any time acquired by a Subsidiary of the Company that has been released
from its Subsidiary Guarantee in accordance with this Indenture, concurrently with the
release thereof, (E) that is Capital Stock of a Subsidiary of the Company to the extent
necessary for such Subsidiary not to be subject to any requirement pursuant to Rule 3-16 or
Rule 3-10 of Regulation S-X under the Securities Act, due to the fact that such Subsidiary’s
Capital Stock secures the Securities, to file separate financial statements with the SEC (or
any other governmental agency) or (F) otherwise in accordance with, and as expressly
provided for under, this Indenture;

     (v) with the consent of each holder of the Securities affected thereby (including,
without limitation, consents obtained in connection with a tender offer or exchange offer
for, or purchase of, Securities); and

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     (vi) with respect to the Newport Beach Property and any mortgage thereon, at the time
any Permitted Investment is made with such Newport Beach Property; provided that the Company
or the applicable Restricted Subsidiary shall 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 Agent a perfected
security interest, subject only to Permitted Liens, in any consideration received by
the Company or its Restricted Subsidiaries in connection with such Permitted Investment and
to have such after-acquired property 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;

provided, that, in the case of any release in whole pursuant to clauses (i) through (v) above, all
amounts then owing to the Trustee under this Indenture, the Securities, the Subsidiary Guarantees,
the Registration Rights Agreement and the Collateral Documents have been paid.

     (b) To the extent applicable, the Company and each Subsidiary Guarantor will furnish to the
Trustee and the Collateral Agent, prior to each proposed release of Collateral pursuant to the
Collateral Documents and this Indenture:

     (i) an Officers’ Certificate and Opinion of Counsel as required by this Indenture; and

     (ii) all documents required by §314(d) of the Trust Indenture Act, the Collateral
Documents and this Indenture.

     Upon compliance by the Company or the Subsidiary Guarantors, as the case may be, with the
conditions precedent set forth above, the Trustee or the Collateral Agent shall promptly cause to
be released and reconveyed to the Company, or its Subsidiary Guarantors, as the case may be, the
released Collateral, and the Collateral Agent shall take such other actions and execute and deliver
such other instruments as may be requested in accordance with the Collateral Documents.

     SECTION 11.9. Authorization of Actions to be Taken by the Collateral Agent Under the
Collateral Documents.

     (a) Subject to the provisions of the Collateral Documents, the Collateral Agent 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 Collateral 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 Collateral Documents, the
Collateral Agent 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 Collateral Documents or this Indenture, and such suits and proceedings as the
Collateral Agent 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

116

 

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 Agent 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 Agent, or (y) with respect to the Collateral Agent, a violation of any standard of
care required of a secured party under Article 9 of the Uniform Commercial Code), for the 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 Agent 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 Collateral 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 Agent
such Mortgages, Collateral Documents and financing statements, if any, as are necessary to perfect
the Collateral Agent’s security interest in such Collateral.

     (d) The Trustee or the Collateral Agent, in giving any consent or approval with respect to the
Collateral under this Indenture or the Collateral Documents, shall be entitled to receive, as a
condition to such consent or approval, 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 Collateral Documents, and the Trustee or the Collateral
Agent 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 Accounts.

     (a) The Trustee is authorized to receive any funds for the benefit of the Holders distributed
under the Collateral Documents, and to make further distributions of such funds to the Holders
according to the provisions of this Indenture and the Collateral 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 Collateral Documents, including earnings,
revenues, rents, issues, profits and income from the Collateral received pursuant to the Collateral
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).

117

 

ARTICLE XII

MISCELLANEOUS

     SECTION 12.1. Trust Indenture Act Controls. If and to the extent that any provision
of this Indenture limits, qualifies or conflicts with another provision which is required to be
included in this Indenture by the TIA, the provision required by the TIA shall control. Each
Subsidiary Guarantor in addition to performing its obligations under its Subsidiary Guarantee shall
perform such other obligations as may be imposed upon it with respect to this Indenture under the
TIA.

     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.

West Tower

Newport Beach, CA 92660

Fax: (419) 325-2585

Attention: Dennis E. O’Reilly, Esq.

with copies to:

Chadbourne & Parke LLP

30 Rockefeller Plaza

New York, NY 10112

Fax: (646) 710-5564

Attention: Peter R. Kolyer, Esq.

if to the Trustee:

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

227 West Monroe

Suite 2600

Chicago, Illinois 60606

Fax: (312) 267-5207

Attention: Corporate Trust Administration

118

 

with copies to:

Pryor Cashman Sherman & Flynn LLP

410 Park Avenue

New York, NY 10022

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.

     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
pursuant to TIA § 312(b) with other Holders with respect to their rights under this Indenture or
the Securities. The Company, the Trustee, the Registrar and anyone else shall have the protection
of TIA § 312(c).

     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:

119

 

     (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.

     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 Securities Disregarded. In determining whether the Holders of the
required aggregate principal amount of Securities have concurred in any direction, waiver or
consent, Securities 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
Securities which the Trustee actually knows are so owned shall be so disregarded. Also, subject to
the foregoing, only Securities 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 COLLATERAL
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

120

 

such, shall have any liability for any obligations of the Company or such Subsidiary Guarantor
under the Securities, this Indenture, a Guarantee, the Collateral Documents or for any claim based
on, in respect of, or by reason of, such obligations or their creation. Each Holder of Securities
by accepting a Security 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
Securities. 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.

     SECTION 12.11. Successors. All agreements of the Company and each Subsidiary
Guarantor in this Indenture and the Securities shall bind their respective successors. All
agreements of the Trustee in this Indenture shall bind its successors.

     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. Qualification of Indenture. The Company shall qualify this Indenture
under the TIA in accordance with the terms and conditions of the Registration Rights Agreement.
The Trustee shall be entitled to receive from the Company any such Officers’ Certificates, Opinions
of Counsel or other documentation as it may reasonably request in connection with any such
qualification of this Indenture under the TIA.

     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 Securities 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.

121

 

     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/ J. Scott Blouin
 	 
	 	 	Name:  	J. Scott Blouin 	 
	 	 	Title:  	Senior Vice President and

Chief Financial Officer 	 
	 

 

 

	 	 	 	 	 
	 	CONEXANT, INC.

 	 
	 	By:  	/s/ Dennis E. O’Reilly
 	 
	 	 	Name:  	Dennis E. O’Reilly 	 
	 	 	Title:  	Vice President and Secretary 	 
	 

 

 

	 	 	 	 	 
	 	BROOKTREE BROADBAND HOLDING, INC.

 	 
	 	By  	/s/ Dennis E. O’Reilly
 	 
	 	 	Name:  	Dennis E. O’Reilly 	 
	 	 	Title:  	President, Chief Executive Officer and 
Chief
Financial Officer 	 
	 

 

 

	 	 	 	 	 
	 	FICON TECHNOLOGY, INC.

 	 
	 	By  	/s/ Dennis E. O’Reilly
 	 
	 	 	Name:  	Dennis E. O’Reilly 	 
	 	 	Title:  	Vice President and Secretary 	 
	 

 

 

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

as Trustee

 	 
	 	By  	/s/ Janice Ott Rotunno
 	 
	 	 	 	 
	 	 	 	 
	 
	 	 THE BANK OF NEW YORK TRUST COMPANY, N.A., 

as Collateral Agent

 	 
	 	By  	/s/ Janice Ott Rotunno
 	 
	 	 	 	 
	 	 	 	 
	 

 

 

SCHEDULE 3.4

EXISTING ENCUMBRANCES OR RESTRICTIONS

Indenture dated November 13, 2006 between Conexant Systems, Inc. and The Bank of New York Trust
Company, N.A.

Floating Rate Senior Secured Note, Series A, due 2010

Floating Rate Senior Secured Note, Series B, due 2010

Subsidiary Guarantees under the Indenture dated November 13, 2006 between Conexant Systems, Inc.
and The Bank of New York Trust Company, N.A.

Security Agreement dated as of November 13, 2006 entered into by Conexant Systems, Inc. and the
Guarantors in favor of the Bank of New York Trust Company, as Collateral Agent

Deed of Trust, Fixture Filing, Security Agreement and Assignment of Leases and Rents dated November
13, 2006 from Conexant Systems, Inc. to Commonwealth Land Title Company, as trustee for the use and
benefit of The Bank of New York Trust Company, N.A., as Trustee and Collateral Agent

The Stockholder Support Agreement dated as of September 26, 2006 by and between Acquicor Technology
Inc., a Delaware Corporation, Conexant Systems, Inc. and certain other persons named therein with
respect to the Capital Stock of Jazz Semiconductor, Inc.

 

 

EXHIBIT A

[FORM OF FACE OF SERIES A NOTE]

[Applicable Restricted Securities Legend]

[Depository Legend, if applicable]

[OID Legend, if applicable]

	 	 	 	 	 	 	 
	No. ___	 	Principal Amount
$       , as	 	 
	 	 	revised by the Schedule of Increases and	 	 
	 	 	Decreases in Global Security attached hereto	 	 
	 	 	CUSIP NO.	 	 
	 

	 	 	 	
 
	 	 
	 

	 	ISIN:	 	 	 	 
	 

	 	 	 	 	 	 

CONEXANT SYSTEMS, INC.

Floating Rate Senior Secured Note, Series A, due 2010

          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 Security attached hereto, on November 15, 2010.

     Interest
Payment Dates: February 15, May 15, August 15, and November 15 commencing on February 15, 2007

     Record Dates: February 1, May 1, August 1, and November 1

          Additional provisions of this Security are set forth on the other side of this Security.

A-1

 

	 	 	 	 	 	 	 	 	 
	 	 	CONEXANT SYSTEMS, INC.
	 
	 	 	 	 	 	 	 	 
	 

	 	By:	 	 	 	 	 	 
	 	 	 	 	 	 	 
	 

	 	 	 	Name:
	 	J. Scott Blouin	 	 
	 

	 	 	 	Title:
	 	Senior Vice President and 

Chief Financial Officer	 	 
	 

	 	Date:	 	 	 	 	 	 

A-2

 

TRUSTEE’S CERTIFICATE OF

   AUTHENTICATION

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

as Trustee, certifies

that this is one of

the Securities referred

to in the within mentioned Indenture.

	 	 	 	 	 
	By:
	 	 	 	 
	 

	 	 

Authorized Signatory
	 	 

Date:

A-3

 

[FORM OF REVERSE SIDE OF SERIES A NOTE]

CONEXANT SYSTEMS, INC.

Floating Rate Senior Secured Note, Series A, due 2010

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 Security at a rate per annum, reset
quarterly, equal to LIBOR (as defined below) plus 3.75% as determined by the calculation agent (the
“Calculation Agent”), which shall initially be the Trustee, commencing November 9, 2006
until maturity and shall pay Additional Interest, if any, payable pursuant to Section 2(d) of the
Registration Rights Agreement referred to below. The Company shall make each interest payment in
cash quarterly in arrears on February 15, May 15, August 15 and November 15 of each year commencing
February 15, 2007, or if any such day is not a Business Day, on the next succeeding Business Day
(each an “Interest Payment Date”). Notwithstanding the foregoing, if any such Interest
Payment Date (other than an Interest Payment Date at maturity) would otherwise be a day that is not
a Business Day, then the interest payment will be postponed to the next succeeding Business Day
(except if that Business Day falls in the next succeeding calendar month, then interest will be
paid on the immediately preceding Business Day). If the maturity date of the Securities is a day
that is not a Business Day, all payments to be made on such day will be made on the next succeeding
Business Day, with the same force and effect as if made on the maturity date, and no additional
interest will be payable as a result of such delay in payment. The interest rate for each Interest
Period (as defined below), other than the Interest Period commencing November 13, 2006 and
continuing until February 14, 2007, for which the interest rate shall be 9.12625%, shall be
adjusted with effect from the Interest Payment Date on which such Interest Period begins. Interest
on this Security will accrue from the most recent date to which interest has been paid or, if no
interest has been paid, from November 15, 2006; provided, that the first Interest Payment Date
shall be February 15, 2007. The Company shall pay interest on overdue principal, and on overdue
premium, if any (plus interest on such interest to the extent lawful), at the rate borne by the
Securities to the extent lawful. Interest on the Securities will be computed on the basis of the
actual number of days in an Interest Period and a 360-day year of twelve 30-day months.

The amount of interest for each day that any Security is outstanding (the “Daily Interest Amount”)
shall be calculated by dividing the interest rate in effect for such day by 360 and multiplying the
result by the principal amount of such Securities. The amount of interest to be paid on the
Securities for each Interest Period will be calculated by adding the Daily Interest Amounts for
each day in the Interest Period. Each interest period shall end on (but not include) the relevant
interest payment date.

All percentages resulting from any of the above calculations shall be rounded, if necessary, to the
nearest one hundredth thousandth of a percentage point, with five one-millionths of a percentage

A-4

 

point being rounded upwards (e.g., 9.876545% (or 0.09876545) being rounded to 9.87655% (or
0.0987655)) and all dollar amounts used in or resulting from such calculations shall be rounded to
the nearest cent (with one-half cent being rounded upwards). In no event shall

the actual interest rate exceed that permitted by applicable law.

     “Determination Date,” with respect to an Interest Period, will be the second London
Banking Day preceding the first day of the Interest Period.

     “Interest Period” means the period commencing on and including an Interest Payment
Date and ending on and including the day immediately preceding the next succeeding Interest Payment
Date; provided that the first Interest Period shall commence on and include November 13, 2006, and
end on and include February 14, 2007.

     “LIBOR,” with respect to an Interest Period, will be the rate (expressed as a
percentage per annum) for deposits in U.S. dollars for a three-month period beginning on the second
London Banking Day after the Determination Date that appears on Telerate Page 3750 as of 11:00
a.m., London time, on the Determination Date. If Telerate Page 3750 does not include such a rate or
is unavailable on a Determination Date, the Calculation Agent will request the principal London
office of each of four major banks in the London interbank market, as selected by the Calculation
Agent, after consultation with the Company, to provide such bank’s offered quotation (expressed as
a percentage per annum), as of approximately 11:00 a.m., London time, on such Determination Date,
to prime banks in the London interbank market for deposits in a Representative Amount in U.S.
dollars for a three-month period beginning on the second London Banking Day after the Determination
Date. If at least two such offered quotations are so provided, the rate for the Interest Period
will be the arithmetic mean of such quotations. If fewer than two such quotations are so provided,
the Calculation Agent will request each of three major banks in New York City, as selected by the
Calculation Agent, after consultation with the Company, to provide such bank’s rate (expressed as a
percentage per annum), as of approximately 11:00 a.m., New York City time, on such Determination
Date, for loans in a Representative Amount in U.S. dollars to leading European banks for a
three-month period beginning on the second London Banking Day after the Determination Date. If at
least two such rates are so provided, then the rate for the Interest Period will be the arithmetic
mean of such rates. If fewer than two such rates are so provided, then the rate for the Interest
Period will be the rate in effect with respect to the immediately preceding Interest Period.

     “London Banking Day” is any day on which dealings in U.S. dollars are transacted or,
with respect to any future date, are expected to be transacted in the London interbank market.

     “Representative Amount” means a principal amount of not less than $1,000,000 for a
single transaction in the relevant market at the relevant time.

     The interest rate on the Securities will in no event be higher than the maximum rate permitted
by applicable law. The Calculation Agent will, upon the request of the Holder of any Securities,
provide the interest rate then in effect with respect to the Securities. All calculations made by
the Calculation Agent in the absence of manifest error will be conclusive

A-5

 

for all purposes and binding on the Company, the Subsidiary Guarantors and the Holders of the
Securities.

     In the event that either the exchange offer registered under the Securities Act (the
“Exchange Offer”) is not completed within 270 calendar days after the Securities are issued
or the shelf registration statement (the “Shelf Registration Statement”), if required by
the Registration Rights Agreement, dated as of November 13, 2006, among the Company and the Initial
Purchasers (the “Registration Rights Agreement”), has not become effective on or prior to
90 calendar days after the later of (x) the date on which the Company and the Subsidiary Guarantors
determine that an Exchange Offer is not available or would violate an applicable law or
interpretation of the staff of the Securities and Exchange Commission or (y) the date that is 270
days after the Issue Date (the “Target Registration Date”), the interest rate on the
Securities will be increased by (i) 0.25% per annum for the first 90-day period immediately
following the Target Registration Date and (ii) an additional 0.25% per annum with respect to each
subsequent 90-day period, in each case until the Exchange Offer is completed or the Shelf
Registration Statement, if required by the Registration Rights Agreement, becomes effective or the
Securities become freely tradable under the Securities Act, up to a maximum increase of 1.00% per
annum. In the event the Company receives a request pursuant to Section 2(b)(iii) of the
Registration Rights Agreement (a “Shelf Request”), and the Shelf Registration Statement
required to be filed thereby has not become effective by the later of (x) 270 calendar days after
the Securities are issued or (y) 90 days after the delivery of such Shelf Request (such later date,
the “Shelf Additional Interest Date”), then the interest rate on the Securities to be
covered by the Shelf Registration Statement will be increased by (i) 0.25% per annum for the first
90-day period immediately following the Shelf Additional Interest Date and (ii) an additional 0.25%
per annum with respect to each subsequent 90-day period, in each case until the Shelf Registration
Statement becomes effective or the Securities become freely tradable under the Securities Act, up
to a maximum increase of 1.00% per annum.

     If the Shelf Registration Statement, if required by the Registration Rights Agreement, has
become effective and thereafter either ceases to be effective or the Prospectus contained therein
ceases to be usable, in each case whether or not permitted by the Registration Rights Agreement, at
any time during the Shelf Effectiveness Period (as defined in the Registration Rights Agreement),
and such failure to remain effective or usable exists for more than 30 consecutive calendar days in
any twelve-month period or 60 calendar days, whether or not consecutive in any 12-month period,
then the interest rate on the Securities covered by the Shelf Registration Statement will be
increased by (i) 0.25% per annum for the first 90-day period commencing on the 31st day
in such 12-month period or the 61st day in such twelve month period, as applicable, and
(ii) an additional 0.25% per annum with respect to each subsequent 90-day period and ending, in the
case of clauses (i) and (ii) on such date that the Shelf Registration Statement has again become
effective or the Prospectus again becomes usable, up to a maximum increase of 1.00% per annum.

     The Holder of this Security is entitled to the benefits of the Registration Rights Agreement.

A-6

 

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 Security 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 Securities at the close of business on the February 1, May 1, August 1 or
November 1 next preceding the interest payment date even if Securities are cancelled, repurchased
or redeemed after the record date and on or before the interest payment date. Holders must
surrender Securities 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 Securities
represented by a Global Security (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
Security (including principal, premium, if any, and interest) by mailing a check to the registered
address of each Holder thereof; provided, however, that payments on the Securities may also be
made, in the case of a Holder of at least $1,000,000 aggregate principal amount of Securities, 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 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 Securities under an Indenture dated as of November 13, 2006 (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. The terms of the Securities include those
stated in the Indenture and those made part of the Indenture by reference to the Trust Indenture
Act of 1939 (15 U.S.C. §§ 77aaa-77bbbb) as in effect on the date of the Indenture (the
“Act”). Capitalized terms used herein and not defined herein have the meanings ascribed
thereto in the Indenture. The Securities are subject to all terms and provisions of the Indenture,
and Holders are referred to the Indenture and the Act for a statement of those terms.

     The Securities 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 Security is one of the Floating Rate Senior Secured Notes, Series A, due 2010 referred to in
the Indenture. The Securities include (i) $275,000,000 aggregate principal amount of the Company’s
Floating Rate Senior Secured Notes, Series A, due 2010

A-7

 

issued under the Indenture on November 13, 2006 (herein called “Initial Securities”),
(ii) if and when issued, additional Floating Rate Senior Secured Notes, Series A, due 2010 or
Floating Rate Senior Secured Notes, Series B, due 2010 of the Company that may be issued from time
to time under the Indenture subsequent to November 13, 2006 (herein called “Additional
Securities”) and (iii) if and when issued, the Company’s Floating Rate Senior Secured Notes,
Series B, due 2011 that may be issued from time to time under the Indenture in exchange for Initial
Securities or Additional Securities in an offer registered under the Securities Act as provided in
the Registration Rights Agreement (herein called “Exchange Securities”). The Initial
Securities, Additional Securities and Exchange Securities 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 Securities 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 Securities and all other amounts payable
by the Company under the Indenture and the Securities when and as the same shall be due and
payable, whether at maturity, by acceleration or otherwise, according to the terms of the
Securities 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 Securities
and the Trustee the Guarantor Obligations pursuant to Article X of the Indenture on a
senior basis.

5. Redemption

     Except as set forth below, the Securities will not be redeemable at the option of the Company
prior to November 15, 2008. On and after such date, the Securities 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 Securities, if any, to the applicable
redemption date (subject to the right of Holders of record on the relevant record date to receive
interest due on the relevant interest payment date), if redeemed during the 12-month period
commencing on November 15 of the years set forth below:

	 	 	 	 	 
	Period	 	Percentage	 
	2008
	 	 	102.00	%
	2009
	 	 	101.00	%
	2010
	 	 	100.00	%

A-8

 

In addition, at any time and from time to time prior to November 15, 2008, the Company may on any
one or more occasions redeem up to 35% of the original principal amount of the Securities with the
Net Cash Proceeds of one or more Equity Offerings at a redemption price of 100% of the principal
amount thereof, plus a premium equal to the interest rate per annum on the Securities applicable on
the date on which notice of redemption was given, plus accrued and unpaid interest, if any, to the
redemption date (subject to the right of Holders of record 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 Securities 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.

     If the optional redemption date is on or after an interest record date and on or before the
related interest payment date, the accrued and unpaid interest, if any, will be paid to the Person
in whose name the Security is registered at the close of business on such record date, and no
additional interest will be payable to Holders whose Securities will be subject to redemption by
the Company.

     In the case of any partial redemption, selection of the Securities for redemption will be made
by the Trustee on a pro rata basis, by lot or by such other method as the Trustee in its sole
discretion shall deem to be fair and appropriate, although no Securities of $2,000 in original
principal amount or less will be redeemed in part. Any such notice to the Trustee 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. If any Security is to be redeemed in part only, the notice of redemption
relating to such Security shall state the portion of the principal amount thereof to be redeemed. A
new Security in principal amount equal to the unredeemed portion thereof will be issued in the name
of the Holder thereof upon cancellation of the original Security. On and after the redemption
date, interest will cease to accrue on Securities or portions thereof called for redemption as long
as the Company has deposited with the Paying Agent funds in satisfaction of the applicable
redemption price pursuant to the Indenture.

6. Repurchase Provisions

     If a Change of Control occurs, unless the Company has exercised its right to redeem all of the
Securities as described under paragraph 5 of the Securities, 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 $1,000 or an integral multiple in excess
thereof) of such Holder’s Securities 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 Securities 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
Securities 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

A-9

 

law or permitted by the Indenture. The Registrar need not register the transfer of or
exchange of any Security for a period beginning 15 days before the mailing of a notice of an offer
to repurchase or redeem Securities 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 Security
selected for redemption.

8. Persons Deemed Owners

     The registered Holder of this Security 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 Securities 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 Securities and the Indenture if the
Company deposits with the Trustee money or U.S. Government Obligations for the payment of
principal, premium, if any, and interest on the Securities to redemption or maturity, as the case
may be.

11. Amendment, Supplement, Waiver

     Subject to certain exceptions set forth in the Indenture, (i) the Indenture, the Securities
and the Collateral Documents and any Subsidiary Guarantee may be amended or supplemented by the
Company, the Subsidiary Guarantors and the Trustee with the written consent of the Holders of at
least a majority in principal amount of the then outstanding Securities and (ii) any default (other
than with respect to nonpayment (except in accordance with Section 6.4 of the Indenture))
or noncompliance with any provision may be waived with the written consent of the Holders of a
majority in principal amount of the then outstanding Securities and except as otherwise set forth
in the Indenture, in each case other than in respect of a provision that cannot be amended without
the written consent of each Holder affected. Subject to certain exceptions set forth in the
Indenture, without the consent of any Holder, the Company, the Subsidiary Guarantors and the
Trustee may amend or supplement the Indenture or the Securities to: cure any ambiguity, omission,
defect or inconsistency; provide for uncertificated Securities in addition to or in place of
certificated Securities (provided that the uncertificated Securities are issued in registered form
for purposes of Section 163(f) of the Code, or in a manner such that the uncertificated Securities
are described in Section 163(f)(2)(B) of the Code); provide for the assumption of the Company’s or
a Subsidiary Guarantor’s obligations to Holders and Subsidiary Guarantees under the Indenture, the
Securities, the Subsidiary Guarantees, the Registration Rights Agreement and the Collateral
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

A-10

 

assets, as applicable; make any change that would provide any additional rights or benefits to
the Holders of Securities or that does not adversely affect the legal rights of any such Holder
under the Indenture, the Securities, the Subsidiary Guarantees or the Collateral Documents; provide
for the issuance of Additional Securities in accordance with the provisions set forth in the
Indenture; 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 the Indenture; conform the text of the Indenture, the Securities, the Subsidiary
Guarantees or the Collateral Documents to any provision of the “Description of notes” section of
the Offering Memorandum to the extent that such provision in the “Description of notes” was
intended to be a verbatim recitation of a provision of the Indenture, the Securities, the
Subsidiary Guarantees or the Collateral Documents; release a Subsidiary Guarantor from its
obligations under its Subsidiary Guarantee, the Securities or the Indenture in accordance with the
applicable provisions of the Indenture; add Subsidiary Guarantees with respect to the Securities;
add additional Collateral to secure the Securities; release Liens in favor of the Collateral Agent
in the Collateral as provided in Section 11.8; comply with requirements of the SEC in order
to effect or maintain the qualification of the Indenture under the Trust Indenture Act; comply with
the rules of any applicable securities depositary; or provide for the accession or succession of
any parties to the Collateral Documents (and other amendments that are administrative or
ministerial in nature) in connection with an amendment, renewal, extension, substitution,
refinancing, restructuring, replacement, supplementing or other modification from time to time of
any agreement or action that is not prohibited by the Indenture.

12. Defaults and Remedies

Under the Indenture, Events of Default include (each of which are more specifically described in
the Indenture): (i) default for 30 days in any payment when due of interest on, or Additional
Interest (if required by the Registration Rights Agreement) with respect to, any Security; (ii)
default in the payment of principal of or premium, if any, on any Security 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 Section
4.1; (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 the Indenture; (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 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 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 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) certain Bankruptcy Law Events of Default;
(viii) any Subsidiary

A-11

 

Guarantee of a Material Subsidiary ceases to be in full force and effect (except as contemplated by
the terms of the 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 the 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) the security interest under the
Collateral 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 Agent that was required to be
taken or not taken by the Collateral Agent pursuant to the Collateral Documents) other than in
accordance with their terms and the terms of the Indenture and other than the satisfaction in full
of all obligations under the Indenture and discharge of the Indenture, (b) the security interest
created under the Collateral 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 Collateral 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) hereof, 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 Securities. However, a default under clause (iv) of this
paragraph will not constitute an Event of Default until the Trustee or the Holders of 25% in
principal amount of the outstanding Securities notify the Company of the default and the Company
does not cure such default within the time specified in clause (iv) of this paragraph after receipt
of such notice.

     If an Event of Default (other than an Event of Default described in clause (vii) above) occurs
and is continuing, the Trustee by notice to the Company, or the Holders of at least 25% in
principal amount of the outstanding Securities by notice to the Company and the Trustee, may, and
the Trustee at the request of such Holders shall, declare the principal of, premium, if any, and
accrued and unpaid interest, if any, on all the Securities to be due and payable. Upon such a
declaration, such principal, premium and accrued and unpaid interest will be due and payable
immediately. If an Event of Default described in clause (vii) above occurs and is continuing, the
principal of, premium, if any, and accrued and unpaid interest on all the Securities will become
and be immediately due and payable without any declaration or other act on the part of the Trustee
or any Holders.

     Holders may not enforce the Indenture or the Securities except as provided in the Indenture.
The Trustee may refuse to enforce the Indenture or the Securities unless it receives indemnity or
security reasonably satisfactory to it. Subject to certain limitations, Holders of a majority in
principal amount of the Securities may direct the Trustee in its exercise of any trust or power.
The Trustee may withhold from Holders notice of any continuing Default or Event of Default (except
a Default or Event of Default in payment of principal, premium, if any, or interest) if it
determines in good faith that withholding notice is in their interest.

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 Securities and may
otherwise deal with and collect obligations owed to it by the Company, the Subsidiary

A-12

 

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 Securities, the Indenture, the Subsidiary Guarantees, the Registration Rights
Agreement or the Collateral Documents or for any claim based on, in respect of, or by reason of,
such obligations or their creation. Each Holder by accepting a Security waives and releases all
such liability. The waiver and release are part of the consideration for issuance of the
Securities. 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 Security 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 Security.

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
Securities 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 Securities or as contained in any notice of redemption,
and reliance may be placed only on the other identification numbers placed thereon.

18. Governing Law

     This Security 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.

A-13

 

West Tower

Newport Beach, CA 92660

Attention: Treasurer

A-14

 

ASSIGNMENT FORM

     To assign this Security, fill in the form below:

     I or we assign and transfer this Security 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 Security 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 Security.

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 Securities evidenced by this
certificate occurring prior to the date that is two years after the later of the date of original
issuance of such Securities and the last date, if any, on which such Securities were owned by the
Company, or any Affiliate of the Company, the undersigned confirms that such Securities are being:

CHECK ONE BOX BELOW:

	 	 	 
	1 ̈

	 	acquired for the undersigned’s own account, without transfer; or
	 
	 	 
	2 ̈

	 	transferred to the Company; or
	 
	 	 
	3 ̈

	 	transferred pursuant to and in compliance with Rule 144A under the Securities Act
of 1933, as amended (the “Securities Act”); or
	 
	 	 
	4 ̈

	 	transferred pursuant to an effective registration statement under the Securities
Act; or
	 
	 	 
	5 ̈

	 	transferred pursuant to and in compliance with Regulation S under the Securities
Act; or

A-15

 

	 	 	 
	6 ̈

	 	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
	 
	 	 
	7 ̈

	 	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 Securities
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 Securities, 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 Security 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-16

 

[TO BE ATTACHED TO GLOBAL SECURITIES]

SCHEDULE OF INCREASES AND DECREASES IN GLOBAL SECURITY

     The following increases and decreases in this Global Security have been made:

	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	Signature of	 
	 	 	 	 	 	 	 	 	 	 	Principal Amount of	 	 	authorized	 
	 	 	Amount of decrease	 	 	Amount of increase	 	 	this Global	 	 	signatory of	 
	 	 	in Principal Amount	 	 	in Principal Amount	 	 	Security following	 	 	Trustee or	 
	Date of Decrease or	 	of this Global	 	 	of this Global	 	 	such decrease or	 	 	Securities	 
	Increase	 	Security	 	 	Security	 	 	increase	 	 	Custodian	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 

A-17

 

OPTION OF HOLDER TO ELECT PURCHASE

     If you elect to have this Security 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 Security 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 Security)

	 	 	 	 	 
	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-18

 

EXHIBIT B

[FORM OF FACE OF SERIES B NOTE]

[Depository Legend, if applicable]

[OID Legend, if applicable]

	 	 	 
	No. ___

	 	Principal Amount $           , as
	 

	 	revised by the Schedule of Increases and
	 

	 	Decreases in Global Security attached hereto
	 

	 	CUSIP NO.                                         
	 

	 	ISIN:                                                             

CONEXANT SYSTEMS, INC.

Floating Rate Senior Secured Note, Series B, due 2010

          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 Security attached hereto, on November 15, 2010.

     Interest Payment Dates: February 15, May 15, August 15 and November 15 commencing
on February 15, 2007

     Record Dates: February 1, May 1, August 1 and November 1

          Additional provisions of this Security are set forth on the other side of this Security.

B-1

 

	 	 	 	 	 
	 	CONEXANT SYSTEMS, INC.

 	 
	 	By:  	 	 
	 	 	Name:  	J. Scott Blouin 	 
	 	 	Title:  	Senior Vice President and

Chief Financial Officer 	 
	 
	 	Date: 

B-2

 

TRUSTEE’S CERTIFICATE OF

      AUTHENTICATION

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

as Trustee, certifies

that this is one of

the Securities referred

to in the within mentioned Indenture.

	 	 	 	 	 
	By:
	 	 	 	 
	 

	 	 

Authorized Signatory
	 	 
	Date:	 	 

B-3

 

EXHIBIT B

[FORM OF REVERSE SIDE OF SERIES B NOTE]

CONEXANT SYSTEMS, INC.

Floating Rate Senior Secured Note, Series B, due 2010

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 Security at a rate per annum, reset
quarterly, equal to LIBOR (as defined below) plus 3.75% as determined by the calculation agent (the
“Calculation Agent”), which shall initially be the Trustee, commencing November 9, 2006
until maturity and shall pay Additional Interest, if any, payable pursuant to Section 2(d) of the
Registration Rights Agreement referred to below. The Company shall make each interest payment in
cash quarterly in arrears on February 15, May 15, August 15 and November 15 of each year commencing
February 15, 2007, or if any such day is not a Business Day, on the next succeeding Business Day
(each an “Interest Payment Date”). Notwithstanding the foregoing, if any such Interest
Payment Date (other than an Interest Payment Date at maturity) would otherwise be a day that is not
a Business Day, then the interest payment will be postponed to the next succeeding Business Day
(except if that Business Day falls in the next succeeding calendar month, then interest will be
paid on the immediately preceding Business Day). If the maturity date of the Securities is a day
that is not a Business Day, all payments to be made on such day will be made on the next succeeding
Business Day, with the same force and effect as if made on the maturity date, and no additional
interest will be payable as a result of such delay in payment. The interest rate for each Interest
Period (as defined below), other than the Interest Period commencing November 13, 2006 and
continuing until February 14, 2007, for which the interest rate shall be 9.12625%, shall be
adjusted with effect from the Interest Payment Date on which such Interest Period begins. Interest
on this Security will accrue from the most recent date to which interest has been paid or, if no
interest has been paid, from November 15, 2006; provided, that the first Interest Payment Date
shall be February 15, 2007. The Company shall pay interest on overdue principal, and on overdue
premium, if any (plus interest on such interest to the extent lawful), at the rate borne by the
Securities to the extent lawful. Interest on the Securities will be computed on the basis of the
actual number of days in an Interest Period and a 360-day year of twelve 30-day months.

The amount of interest for each day that any Security is outstanding (the “Daily Interest Amount”)
shall be calculated by dividing the interest rate in effect for such day by 360 and multiplying the
result by the principal amount of such Securities. The amount of interest to be paid on the
Securities for each Interest Period will be calculated by adding the Daily Interest

B-4

 

Amounts for each day in the Interest Period. Each interest period shall end on (but not include)
the relevant interest payment date.

All percentages resulting from any of the above calculations shall be rounded, if necessary, to the
nearest one hundredth thousandth of a percentage point, with five one-millionths of a percentage
point being rounded upwards (e.g., 9.876545% (or 0.09876545) being rounded to 9.87655% (or
0.0987655)) and all dollar amounts used in or resulting from such calculations shall be rounded to
the nearest cent (with one-half cent being rounded upwards). In no
event shall the actual interest rate exceed that permitted by applicable law.

     “Determination Date,” with respect to an Interest Period, will be the second London
Banking Day preceding the first day of the Interest Period.

     “Interest Period” means the period commencing on and including an Interest Payment
Date and ending on and including the day immediately preceding the next succeeding Interest Payment
Date; provided that the first Interest Period shall commence on and include November 13, 2006, and
end on and include February 14, 2007.

     “LIBOR,” with respect to an Interest Period, will be the rate (expressed as a
percentage per annum) for deposits in U.S. dollars for a three-month period beginning on the second
London Banking Day after the Determination Date that appears on Telerate Page 3750 as of 11:00
a.m., London time, on the Determination Date. If Telerate Page 3750 does not include such a rate or
is unavailable on a Determination Date, the Calculation Agent will request the principal London
office of each of four major banks in the London interbank market, as selected by the Calculation
Agent, after consultation with the Company, to provide such bank’s offered quotation (expressed as
a percentage per annum), as of approximately 11:00 a.m., London time, on such Determination Date,
to prime banks in the London interbank market for deposits in a Representative Amount in U.S.
dollars for a three-month period beginning on the second London Banking Day after the Determination
Date. If at least two such offered quotations are so provided, the rate for the Interest Period
will be the arithmetic mean of such quotations. If fewer than two such quotations are so provided,
the Calculation Agent will request each of three major banks in New York City, as selected by the
Calculation Agent, after consultation with the Company, to provide such bank’s rate (expressed as a
percentage per annum), as of approximately 11:00 a.m., New York City time, on such Determination
Date, for loans in a Representative Amount in U.S. dollars to leading European banks for a
three-month period beginning on the second London Banking Day after the Determination Date. If at
least two such rates are so provided, then the rate for the Interest Period will be the arithmetic
mean of such rates. If fewer than two such rates are so provided, then the rate for the Interest
Period will be the rate in effect with respect to the immediately preceding Interest Period.

     “London Banking Day” is any day on which dealings in U.S. dollars are transacted or,
with respect to any future date, are expected to be transacted in the London interbank market.

     “Representative Amount” means a principal amount of not less than $1,000,000 for a
single transaction in the relevant market at the relevant time.

B-5

 

     The interest rate on the Securities will in no event be higher than the maximum rate permitted
by applicable law. The Calculation Agent will, upon the request of the Holder of any Securities,
provide the interest rate then in effect with respect to the Securities. All calculations made by
the Calculation Agent in the absence of manifest error will be conclusive for all purposes and
binding on the Company, the Subsidiary Guarantors and the Holders of the Securities.

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 Security 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 Securities at the close of business on the February 1, May 1, August 1 or
November 1 next preceding the interest payment date even if Securities are cancelled, repurchased
or redeemed after the record date and on or before the interest payment date. Holders must
surrender Securities 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 Securities
represented by a Global Security (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
Security (including principal, premium, if any, and interest) by mailing a check to the registered
address of each Holder thereof; provided, however, that payments on the Securities may also be
made, in the case of a Holder of at least $1,000,000 aggregate principal amount of Securities, 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 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 Securities under an Indenture dated as of November 13, 2006 (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. The terms of the Securities include those
stated in the Indenture and those made part of the Indenture by reference to the Trust Indenture
Act of 1939 (15 U.S.C. §§ 77aaa-77bbbb) as in effect on the date of the Indenture (the
“Act”). Capitalized terms used herein and not defined herein have the meanings

B-6

 

ascribed thereto in the Indenture. The Securities are subject to all terms and provisions of
the Indenture, and Holders are referred to the Indenture and the Act for a statement of those
terms.

     The Securities 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 Security is one of the Floating Rate Senior Secured Notes, Series A, due 2010 referred to in
the Indenture. The Securities include (i) $275,000,000 aggregate principal amount of the Company’s
Floating Rate Senior Secured Notes, Series A, due 2010 issued under the Indenture on November 13,
2006 (herein called “Initial Securities”), (ii) if and when issued, additional Floating
Rate Senior Secured Notes, Series A, due 2010 or Floating Rate Senior Secured Notes, Series B, due
2010 of the Company that may be issued from time to time under the Indenture subsequent to November
13, 2006 (herein called “Additional Securities”) and (iii) if and when issued, the
Company’s Floating Rate Senior Secured Notes, Series B, due 2011 that may be issued from time to
time under the Indenture in exchange for Initial Securities or Additional Securities in an offer
registered under the Securities Act as provided in the Registration Rights Agreement (herein called
“Exchange Securities”). The Initial Securities, Additional Securities and Exchange
Securities 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 Securities 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 Securities and all other amounts payable
by the Company under the Indenture and the Securities when and as the same shall be due and
payable, whether at maturity, by acceleration or otherwise, according to the terms of the
Securities 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 Securities
and the Trustee the Guarantor Obligations pursuant to Article X of the Indenture on a
senior basis.

5. Redemption

     Except as set forth below, the Securities will not be redeemable at the option of the Company
prior to November 15, 2008. On and after such date, the Securities 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 Securities, if any, to the applicable
redemption date (subject to the right of Holders of record on the relevant record date to receive
interest due on the relevant interest payment date), if redeemed during the 12-month period
commencing on November 15 of the years set forth below:

B-7

 

	 	 	 	 	 
	Period	 	Percentage
	2008
	 	 	102.00	%
	2009
	 	 	101.00	%
	2010
	 	 	100.00	%

     In addition, at any time and from time to time prior to November 15, 2008, the Company may on
any one or more occasions redeem up to 35% of the original principal amount of the Securities with
the Net Cash Proceeds of one or more Equity Offerings at a redemption price of 100% of the
principal amount thereof, plus a premium equal to the interest rate per annum on the Securities
applicable on the date on which notice of redemption was given, plus accrued and unpaid interest,
if any, to the redemption date (subject to the right of Holders of record 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 Securities 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.

     If the optional redemption date is on or after an interest record date and on or before the
related interest payment date, the accrued and unpaid interest, if any, will be paid to the Person
in whose name the Security is registered at the close of business on such record date, and no
additional interest will be payable to Holders whose Securities will be subject to redemption by
the Company.

     In the case of any partial redemption, selection of the Securities for redemption will be made
by the Trustee on a pro rata basis, by lot or by such other method as the Trustee in its sole
discretion shall deem to be fair and appropriate, although no Securities of $2,000 in original
principal amount or less will be redeemed in part. Any such notice to the Trustee 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. If any Security is to be redeemed in part only, the notice of redemption
relating to such Security shall state the portion of the principal amount thereof to be redeemed. A
new Security in principal amount equal to the unredeemed portion thereof will be issued in the name
of the Holder thereof upon cancellation of the original Security. On and after the redemption
date, interest will cease to accrue on Securities or portions thereof called for redemption as long
as the Company has deposited with the Paying Agent funds in satisfaction of the applicable
redemption price pursuant to the Indenture.

6. Repurchase Provisions

     If a Change of Control occurs, unless the Company has exercised its right to redeem all of the
Securities as described under paragraph 5 of the Securities, 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 $1,000 or an integral multiple in excess
thereof) of such Holder’s Securities 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.

B-8

 

7. Denominations; Transfer; Exchange

     The Securities 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
Securities 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 Security for a
period beginning 15 days before the mailing of a notice of an offer to repurchase or redeem
Securities 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 Security selected for redemption.

8. Persons Deemed Owners

     The registered Holder of this Security 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 Securities 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 Securities and the Indenture if the
Company deposits with the Trustee money or U.S. Government Obligations for the payment of
principal, premium, if any, and interest on the Securities to redemption or maturity, as the case
may be.

11. Amendment, Supplement, Waiver

     Subject to certain exceptions set forth in the Indenture, (i) the Indenture, the Securities
and the Collateral Documents and any Subsidiary Guarantee may be amended or supplemented by the
Company, the Subsidiary Guarantors and the Trustee with the written consent of the Holders of at
least a majority in principal amount of the then outstanding Securities and (ii) any default (other
than with respect to nonpayment (except in accordance with Section 6.4 of the Indenture))
or noncompliance with any provision may be waived with the written consent of the Holders of a
majority in principal amount of the then outstanding Securities and except as otherwise set forth
in the Indenture, in each case other than in respect of a provision that cannot be amended without
the written consent of each Holder affected. Subject to certain exceptions set forth in the
Indenture, without the consent of any Holder, the Company, the Subsidiary Guarantors and the
Trustee may amend or supplement the Indenture or the Securities to: cure any ambiguity, omission,
defect or inconsistency; provide for uncertificated

B-9

 

Securities in addition to or in place of certificated Securities (provided that the
uncertificated Securities are issued in registered form for purposes of Section 163(f) of the Code,
or in a manner such that the uncertificated Securities are described in Section 163(f)(2)(B) of the
Code); provide for the assumption of the Company’s or a Subsidiary Guarantor’s obligations to
Holders of Securities and Subsidiary Guarantees under the Indenture, the Securities, the Subsidiary
Guarantees and the Collateral 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; make any
change that would provide any additional rights or benefits to the Holders of Securities or that
does not adversely affect the legal rights of any such Holder under the Indenture, the Securities,
the Subsidiary Guarantees or the Collateral Documents; (5) provide for the issuance of Additional
Securities in accordance with the provisions set forth in the Indenture; 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 the Indenture; conform the text
of the Indenture, the Securities, the Subsidiary Guarantees or the Collateral Documents to any
provision of the “Description of notes” to the extent that such provision in the “Description of
notes” was intended to be a verbatim recitation of a provision of the Indenture, the Securities,
the Subsidiary Guarantees or the Collateral Documents; release a Subsidiary Guarantor from its
obligations under its Subsidiary Guarantee, the Securities or the Indenture in accordance with the
applicable provisions of the Indenture; add Subsidiary Guarantees with respect to the Securities;
add additional Collateral to secure the Securities; release Liens in favor of the Collateral Agent
in the Collateral as provided in Section 11.8; comply with requirements of the SEC in order
to effect or maintain the qualification of the Indenture under the Trust Indenture Act; comply with
the rules of any applicable securities depositary; or provide for the accession or succession of
any parties to the Collateral Documents (and other amendments that are administrative or
ministerial in nature) in connection with an amendment, renewal, extension, substitution,
refinancing, restructuring, replacement, supplementing or other modification from time to time of
any agreement or action that is not prohibited by the Indenture.

12. Defaults and Remedies

Under the Indenture, Events of Default include (each of which are more specifically described in
the Indenture): (i) default for 30 days in any payment when due of interest on, or Additional
Interest (as required by the Registration Rights Agreement) with respect to, any Security; (ii)
default in the payment of principal of or premium, if any, on any Security 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 Section
4.1; (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 the Indenture; (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 or (b) results in the
acceleration of such Indebtedness prior to its maturity,

B-10

 

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 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 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) certain
Bankruptcy Law Events of Default; (viii) any Subsidiary Guarantee of a Material Subsidiary ceases
to be in full force and effect (except as contemplated by the terms of the 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 the 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) the security interest under the Collateral 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 Agent that was required to be taken or not taken by the
Collateral Agent pursuant to the Collateral Documents) other than in accordance with their terms
and the terms of the Indenture and other than the satisfaction in full of all obligations under the
Indenture and discharge of the Indenture, (b) the security interest created under the Collateral
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 Collateral 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) hereof, 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 Securities. However, a default under clause (iv) of this paragraph will not constitute
an Event of Default until the Trustee or the Holders of 25% in principal amount of the outstanding
Securities notify the Company of the default and the Company does not cure such default within the
time specified in clause (iv) of this paragraph after receipt of such notice.

     If an Event of Default (other than an Event of Default described in clause (vii) above) occurs
and is continuing, the Trustee by notice to the Company, or the Holders of at least 25% in
principal amount of the outstanding Securities by notice to the Company and the Trustee, may, and
the Trustee at the request of such Holders shall, declare the principal of, premium, if any, and
accrued and unpaid interest, if any, on all the Securities to be due and payable. Upon such a
declaration, such principal, premium and accrued and unpaid interest will be due and payable
immediately. If an Event of Default described in clause (vii) above occurs and is continuing, the
principal of, premium, if any, and accrued and unpaid interest on all the Securities will become
and be immediately due and payable without any declaration or other act on the part of the Trustee
or any Holders.

     Holders may not enforce the Indenture or the Securities except as provided in the Indenture.
The Trustee may refuse to enforce the Indenture or the Securities unless it receives indemnity or
security reasonably satisfactory to it. Subject to certain limitations, Holders of a majority in
principal amount of the Securities may direct the Trustee in its exercise of any trust or power.
The Trustee may withhold from Holders notice of any continuing Default or Event of Default (except
a Default or Event of Default in payment of principal, premium, if any, or interest) if it
determines in good faith that withholding notice is in their interest.

B-11

 

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 Securities 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 Securities, the Indenture, the Subsidiary Guarantees or the Collateral
Documents or for any claim based on, in respect of, or by reason of, such obligations or their
creation. Each Holder by accepting a Security waives and releases all such liability. The waiver
and release are part of the consideration for issuance of the Securities. 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 Security 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 Security.

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
Securities 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 Securities or as contained in any notice of redemption,
and reliance may be placed only on the other identification numbers placed thereon.

18. Governing Law

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

B-12

 

     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: Treasurer

B-13

 

ASSIGNMENT FORM

          To assign this Security, fill in the form below:

          I or we assign and transfer this Security 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 Security 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 Security.

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.

B-14

 

[TO BE ATTACHED TO GLOBAL SECURITIES]

SCHEDULE OF INCREASES AND DECREASES IN GLOBAL SECURITY

          The following increases and decreases in this Global Security have been made:

	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	Signature of	 
	 	 	Amount of	 	 	Amount of	 	 	Principal Amount	 	 	authorized	 
	Date of	 	decrease in	 	 	increase in	 	 	of this Global	 	 	signatory of	 
	Decrease	 	Principal Amount	 	 	Principal Amount	 	 	Security following	 	 	Trustee or	 
	or	 	of this Global	 	 	of this Global	 	 	such decrease or	 	 	Securities	 
	Increase	 	Security	 	 	Security	 	 	increase	 	 	Custodian	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 

B-15

 

OPTION OF HOLDER TO ELECT PURCHASE

          If you elect to have this Security 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 Security 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 Security)

	 	 	 
	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.

B-16

 

EXHIBIT C

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 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 November [___], 2006 (as amended, supplemented, waived or
otherwise modified, the “Indenture”), providing for the issuance of Floating Rate Senior
Secured Notes due 2010 of the Company (the “Securities”);

          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 Securities 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 Securities 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
“herein,” “hereof” and “hereby” and other words of similar import used in this Supplemental

C-1

 

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 Securities 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
Securities 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.

C-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.

C-3

 

          IN WITNESS WHEREOF, the parties hereto have caused the Indenture to be duly executed as of the
date first above written.

	 	 	 	 	 
	 	[SECURITIES GUARANTOR],

as a Guarantor

 	 
	 	By:  	 	 
	 	 	Name:  	 	 
	 	 	Title:  	

  [Address] 	 
	 
	 	THE BANK OF NEW YORK TRUST COMPANY, N.A.

as Trustee

 	 
	 	By:  	 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 
	 
	 	CONEXANT SYSTEMS, INC.

 	 
	 	By:  	 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 
	 
	 	[EXISTING GUARANTORS]

 	 
	 	By:  	 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 
	 

C-4

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