Document:

exv4w04

 

Exhibit 4.04

 

CADENCE DESIGN SYSTEMS, INC.

as Issuer

and 

DEUTSCHE BANK TRUST COMPANY AMERICAS

as Trustee

INDENTURE

Dated as of December 19, 2006

1.500% Convertible Senior Notes due 2013

 

 

 

Table of Contents 

	 	 	 	 	 
	 	 	Page
	ARTICLE 1
	 	 	 	 
	Definitions
	 	 	 	 
	 
	 	 	 	 
	Section 1.01.
Definitions

	 	 	1	 
	Section 1.02.
Incorporation by Reference of Trust Indenture Act

	 	 	12	 
	 
	ARTICLE 2
	 	 	 	 
	Issue, Description, Execution, Registration and Exchange of Notes
	 	 	 	 
	 
	 	 	 	 
	Section 2.01. Designation and Amount

	 	 	13	 
	Section 2.02. Form of Notes

	 	 	13	 
	Section 2.03. Date and Denomination of Notes; Payments of Interest

	 	 	14	 
	Section 2.04. Date and Denomination of Notes

	 	 	15	 
	Section 2.05. Execution Authentication and Delivery of Notes

	 	 	15	 
	Section 2.06. Exchange and Registration of Transfer of Notes; Restrictions on Transfer; Depositary

	 	 	16	 
	Section 2.07. Mutilated Destroyed, Lost or Stolen Notes

	 	 	22	 
	Section 2.08. Temporary Notes

	 	 	24	 
	Section 2.09. Cancellation of Notes Paid, etc.

	 	 	24	 
	Section 2.10. CUSIP Numbers

	 	 	24	 
	Section 2.11. Additional Notes, Repurchases

	 	 	25	 
	 
	 	 	 	 
	ARTICLE 3
	 	 	 	 
	Particular Covenants of the Company
	 	 	 	 
	 
	 	 	 	 
	Section 3.01. Payment of Principal, Interest, Additional Interest, Extension Fee and Conversion Obligation

	 	 	25	 
	Section 3.02. Maintenance of Office or Agency

	 	 	25	 
	Section 3.03. Appointments to Fill Vacancies in Trustee’s Office 
	 	 	26	 
	Section 3.04. Provisions as to Paying Agent

	 	 	26	 
	Section 3.05. Existence

	 	 	28	 
	Section 3.06. Rule 144A Information Requirement

	 	 	28	 
	Section 3.07. Stay Extension and Usury Laws

	 	 	28	 
	Section 3.08. Compliance Certificate; Statements as to Defaults

	 	 	28	 
	Section 3.09. Additional Interest Notice

	 	 	29	 
	Section 3.10. Further Instruments and Acts

	 	 	29	 
	 
	 	 	 	 
	ARTICLE 4
	 	 	 	 
	Lists of Noteholders and Reports by the Company and the Trustee
	 	 	 	 
	 
	 	 	 	 
	Section 4.01. Lists of Noteholders

	 	 	29	 

i

 

	 	 	 	 	 
	 	 	Page
	Section 4.02. Preservation and Disclosure of Lists

	 	 	30	 
	Section 4.03. Reports by Trustee

	 	 	30	 
	Section 4.04. Reports by Company

	 	 	30	 
	 
	 	 	 	 
	ARTICLES 5
	 	 	 	 
	Defaults and Remedies
	 	 	 	 
	 
	 	 	 	 
	Section 5.01. Events of Default

	 	 	31	 
	Section 5.02. Payments of Notes on Default; Suit Therefor

	 	 	35	 
	Section 5.03. Application of Monies Collected by Trustee

	 	 	36	 
	Section 5.04. Proceedings by Noteholders

	 	 	37	 
	Section 5.05. Proceedings by Trustee

	 	 	38	 
	Section 5.06. Remedies Cumulative and Continuing

	 	 	38	 
	Section 5.07. Direction of Proceedings and Waiver of Defaults by Majority of Noteholders

	 	 	38	 
	Section 5.08. Notice of Defaults

	 	 	39	 
	Section 5.09. Undertaking to Pay Costs

	 	 	39	 
	 
	 	 	 	 
	 ARTICLE 6
	 	 	 	 
	 Concerning the Trustee 
	 	 	 	 
	 
	 	 	 	 
	Section 6.01. Duties and Responsibilities of Trustee

	 	 	40	 
	Section 6.02. Reliance on Documents, Opinions, etc.

	 	 	42	 
	Section 6.03. No Responsibility for Recitals, etc.

	 	 	44	 
	Section 6.04. Trustee, Paying Agents, Conversion Agents or Registrar May Own Notes

	 	 	44	 
	Section 6.05. Monies to be Held in Trust

	 	 	44	 
	Section 6.06. Compensation and Expenses of Trustee

	 	 	44	 
	Section 6.07. Officers’ Certificate as Evidence

	 	 	45	 
	Section 6.08. Conflicting Interests of Trustee

	 	 	46	 
	Section 6.09. Eligibility of Trustee

	 	 	46	 
	Section 6.10. Resignation or Removal of Trustee

	 	 	46	 
	Section 6.11. Acceptance by Successor Trustee

	 	 	47	 
	Section 6.12. Succession by Merger, etc.

	 	 	48	 
	Section 6.13. Limitation on Rights of Trustee as Creditor

	 	 	49	 
	Section 6.14. Trustee’s Application for Instructions from the Company

	 	 	49	 
	Section 6.15. Authorization of Trustee to Take Other Action

	 	 	49	 
	 
	 	 	 	 
	ARTICLE 7
	 	 	 	 
	Concerning the Noteholders
	 	 	 	 
	 
	 	 	 	 
	Section 7.01. Action by Noteholders

	 	 	50	 
	Section 7.02. Proof of Execution by Noteholders

	 	 	51	 
	Section 7.03. Who Are Deemed Absolute Owners

	 	 	51	 
	Section 7.04. Company-owned Notes Disregarded

	 	 	51	 

ii

 

	 	 	 	 	 
	 	 	Page
	Section 7.05. Revocation of Consents; Future Holders Bound

	 	 	52	 
	 
	 	 	 	 
	ARTICLE 8
	 	 	 	 
	Noteholders’ Meetings 
	 	 	 	 
	 
	 	 	 	 
	Section 8.01. Purpose of Meetings

	 	 	52	 
	Section 8.02. Call of Meetings by Trustee

	 	 	53	 
	Section 8.03. Call of Meetings by Company or Noteholders

	 	 	53	 
	Section 8.04. Qualifications for Voting

	 	 	53	 
	Section 8.05. Regulations

	 	 	53	 
	Section 8.06. Voting

	 	 	54	 
	Section 8.07. No Delay of Rights by Meeting

	 	 	55	 
	 
	 	 	 	 
	ARTICLE 9
	 	 	 	 
	Supplemental Indentures 
	 	 	 	 
	 
	 	 	 	 
	Section 9.01. Supplemental Indentures Without Consent of Noteholders

	 	 	55	 
	Section 9.02. Supplemental Indentures With Consent of Noteholders

	 	 	56	 
	Section 9.03. Effect of Supplemental Indentures

	 	 	57	 
	Section 9.04. Notation on Notes

	 	 	58	 
	Section 9.05. Evidence of Compliance of Supplemental Indenture to be Furnished to Trustee

	 	 	58	 
	 
	 	 	 	 
	 ARTICLE 10
	 	 	 	 
	Consolidation, Merger, Sale, Conveyance and Lease 
	 	 	 	 
	 
	 	 	 	 
	Section 10.01. Company May Consolidate, etc. on Certain Terms

	 	 	58	 
	Section 10.02. Successor Corporation to be Substituted

	 	 	59	 
	Section 10.03. Officers’ Certificate and Opinion of Counsel to be Given to Trustee

	 	 	60	 
	 
	 	 	 	 
	ARTICLE 11
	 	 	 	 
	Satisfaction and Discharge of Indenture 
	 	 	 	 
	 
	 	 	 	 
	Section 11.01. Discharge of Indenture

	 	 	60	 
	Section 11.02. Deposited Monies to be Held in Trust by Trustee

	 	 	61	 
	Section 11.03. Paying Agent to Repay Monies Held

	 	 	61	 
	Section 11.04. Return of Unclaimed Monies

	 	 	61	 
	Section 11.05. Reinstatement

	 	 	61	 
	 
	 	 	 	 
	ARTICLE 12
	 	 	 	 
	Immunity of Incorporators, Stockholders, Officers and Directors 
	 	 	 	 
	 
	 	 	 	 
	Section 12.01. Indenture and Notes Solely Corporate Obligations

	 	 	62	 

iii

 

	 	 	 	 	 
	 	 	Page
	 
	 	 	 	 
	ARTICLE 13
	 	 	 	 
	Conversion of Notes 
	 	 	 	 
	 
	 	 	 	 
	Section 13.01. Conversion Privilege

	 	 	62	 
	Section 13.02. Conversion Procedure

	 	 	66	 
	Section 13.03. Adjustment of Conversion Rate

	 	 	69	 
	Section 13.04. Shares to be Fully Paid; Compliance

	 	 	79	 
	Section 13.05. Effect of Reclassification, Consolidation, Merger or Sale

	 	 	79	 
	Section 13.06. Certain Covenants

	 	 	81	 
	Section 13.07. Responsibility of Trustee

	 	 	82	 
	Section 13.08. Notice to Holders Prior to Certain Actions

	 	 	82	 
	Section 13.09. Stockholder Rights Plans

	 	 	83	 
	Section 13.10. Exchange in Lieu of Conversion

	 	 	84	 
	 
	 	 	 	 
	ARTICLE 14
	 	 	 	 
	Repurchase of Notes at Option of Holders 
	 	 	 	 
	 
	 	 	 	 
	Section 14.01. Repurchase at Option of Holders Upon a Fundamental Change

	 	 	85	 
	 
	 	 	 	 
	ARTICLE 15
	 	 	 	 
	Miscellaneous Provisions 
	 	 	 	 
	 
	 	 	 	 
	Section 15.01. Provisions Binding on Company’s Successors

	 	 	89	 
	Section 15.02. Official Acts by Successor Corporation

	 	 	89	 
	Section 15.03. Addresses for Notices, Etc.

	 	 	89	 
	Section 15.04. Governing Law

	 	 	89	 
	Section 15.05. Evidence of Compliance with Conditions Precedent; Certificates and Opinions of Counsel to Trustee

	 	 	90	 
	Section 15.06. Legal Holidays

	 	 	90	 
	Section 15.07. No Security Interest Created

	 	 	90	 
	Section 15.08. Benefits of Indenture

	 	 	90	 
	Section 15.09. Table of Contents, Headings, etc.

	 	 	91	 
	Section 15.10. Authenticating Agent

	 	 	91	 
	Section 15.11. Execution in Counterparts

	 	 	92	 
	Section 15.12. USA PATRIOT Act

	 	 	92	 

iv

 

Cadence Design Systems, Inc. 

Reconciliation and tie between Trust Indenture Act of 1939 and

Indenture, dated as of December 19, 2006

	 	 	 	 	 
	 	 	 	 	Indenture
	 	 	TIA Section	 	Section
	§310
	 	(a)(l)	 	6.09
	 
	 	(a)(2)	 	6.09
	 
	 	(a)(3)	 	Not Applicable
	 
	 	(a)(4)	 	Not Applicable
	 
	 	(a)(5)	 	6.09
	 
	 	(b)	 	6.08; 6.10; 6.11
	311
	 	(a)	 	Not Applicable
	 
	 	(b)	 	6.13
	312
	 	(a)	 	4.01; 4.02(a)
	 
	 	(b)	 	4.02(b)
	 
	 	(c)	 	4.02(c)
	313
	 	(a)	 	4.03(a)
	 
	 	(b)	 	4.03(a)
	 
	 	(c)	 	4.03(a)
	 
	 	(d)	 	4.03(b)
	314
	 	(a)	 	4.04(a)
	 
	 	(b)	 	Not Applicable
	 
	 	(c)(l)	 	3.08
	 
	 	(c)(2)	 	3.08
	 
	 	(c)(3)	 	Not Applicable
	 
	 	(d)	 	Not Applicable
	 
	 	(e)	 	3.08
	315
	 	(a)	 	6.01
	 
	 	(b)	 	5.08
	 
	 	(c)	 	6.01
	 
	 	(d)	 	6.01
	 
	 	(e)	 	5.09
	316
	 	(a)	 	1.01
	 
	 	(a)(l)(A)	 	7.01; 5.01
	 
	 	(a)(l)(B)	 	5.07
	 
	 	(a)(2)	 	Not Applicable
	 
	 	(b)	 	5.04
	 
	 	(c)	 	7.01
	317
	 	(a)(l)	 	5.02; 5.03; 5.05
	 
	 	(a)(2)	 	5.02
	 
	 	(b)	 	6.05; 11.01
	318
	 	(a)	 	1.02
	 
	 	(c)	 	1.02

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

 

 

     INDENTURE dated as of December 19, 2006 between Cadence Design Systems, Inc., a Delaware
corporation, as issuer (hereinafter sometimes called the “Company”, as more fully set forth in
Section 1.01), and Deutsche Bank Trust Company Americas, a New York banking corporation, as trustee
(hereinafter sometimes called the “Trustee”, as more fully set forth in Section 1.01).

WITNESSETH:

     WHEREAS, for its lawful corporate purposes, the Company has duly authorized the issue of its
1.500% Convertible Senior Notes due 2013 (hereinafter sometimes called the “Notes”), initially in
an aggregate principal amount not to exceed $250,000,000, and in order to provide the terms and
conditions upon which the Notes are to be authenticated, issued and delivered, the Company has duly
authorized the execution and delivery of this Indenture;

     WHEREAS, the Notes, the certificate of authentication to be borne by the Notes, a form of
assignment, a form of the Fundamental Change Repurchase Notice and a form of conversion notice are
to be substantially in the forms hereinafter provided for; and

     WHEREAS, all acts and things necessary to make the Notes, when executed by the Company and
authenticated and delivered by the Trustee or a duly authorized authenticating agent, as in this
Indenture provided, the valid, binding and legal obligations of the Company, and to constitute this
Indenture a valid agreement according to its terms, have been done and performed, and the execution
of this Indenture and the issue hereunder of the Notes have in all respects been duly authorized.

     NOW, THEREFORE, THIS INDENTURE WITNESSETH:

     That in order to declare the terms and conditions upon which the Notes are, and are to be,
authenticated, issued and delivered, and in consideration of the premises and of the purchase and
acceptance of the Notes by the holders thereof, the Company covenants and agrees with the Trustee
for the equal and proportionate benefit of the respective holders from time to time of the Notes
(except as otherwise provided below), as follows:

ARTICLE 1

Definitions

     Section 1.01. Definitions.

     (a) The terms defined in this Section 1.01 (except as herein otherwise expressly provided
or unless the context otherwise requires) for all purposes of

 

 

this Indenture and of any indenture supplemental hereto shall have the respective meanings
specified in this Section 1.01 . All other terms used in this Indenture, which are defined in the
Trust Indenture Act or which are by reference therein defined in the Securities Act (except as
herein otherwise expressly provided or unless the context otherwise requires) shall have the
meanings assigned to such terms in said Trust Indenture Act and in said Securities Act as in force
at the date of the execution of this Indenture. If any provision hereof limits, qualifies or
conflicts with another provision hereof which is required to be included in this Indenture by any
of the provisions of the Trust Indenture Act, such required provision shall control. The words
“herein,” “hereof,” “hereunder,” and words of similar import refer to this Indenture as a whole and
not to any particular Article, Section or other Subdivision. The terms defined in this Article
include the plural as well as the singular.

     “2011 Notes” means the 1.375% Convertible Senior Notes due 2011 of the Company issued
pursuant to an indenture dated the date hereof between the Company and the Trustee.

     “Additional Extension Fee” shall have the meaning specified in Section 5.01.

     “Additional Interest” means all additional interest then owing pursuant to the
Registration Rights Agreement.

     “Additional
Shares” shall have the meaning specified in Section 13.10(e).

     “Adjustment Determination Date” shall have the meaning specified in Section 13.03(j).

     “Adjustment Event” shall have the meaning specified in Section 13.03(j).

     “Affiliate” of any specified person means any other person directly or indirectly controlling
or controlled by or under direct or indirect common control with such specified person. For the
purposes of this definition, “control,” when used with respect to any specified person means the
power to direct or cause the direction of the management and policies of such person, directly or
indirectly, whether through the ownership of voting securities, by contract or otherwise; and the
terms “controlling” and “controlled” have meanings correlative to the foregoing.

     “Beneficial Owner” and “Beneficial Ownership” means as determined in accordance with Rule
13d-3 under the Exchange Act.

2

 

     “Board of Directors” means the Board of Directors of the Company or, unless the context
otherwise requires, a committee of such Board duly authorized to act for it hereunder.

     “Board Resolution” means a copy of a resolution certified by the Secretary or an Assistant
Secretary of the Company to have been duly adopted by the Board of Directors, or a duly authorized
committee thereof (to the extent permitted by applicable law), and to be in full force and effect
on the date of such certification, and delivered to the Trustee.

     “Business Day” means any day, except a Saturday, Sunday or legal holiday on which banking
institutions in The City of New York or the city in which the Corporate Trust Office is located are
authorized or obligated by law or executive order to close.

     “Capital Lease” means a lease that, in accordance with accounting principles generally
accepted in the United States of America, would be recorded as a capital lease on the balance sheet
of the lessee.

     “Capital Stock” means, for any entity, any and all shares, interests, rights to purchase,
warrants, options, participations or other equivalents of or interests in (however designated)
stock issued by that entity.

     “Close of Business” means 5:00 p.m. (New York City time).

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

      “Commission” means the Securities
and Exchange Commission.

     “Common Stock” means, subject to Section 13.05, shares of common stock of the Company, par
value $0.01 per share, at the date of this Indenture or shares of any class or classes resulting
from any reclassification or reclassifications thereof and that have no preference in respect of
dividends or of amounts payable in the event of any voluntary or involuntary liquidation,
dissolution or winding up of the Company and that are not subject to redemption by the Company;
provided that if at any time there shall be more than one such resulting class, the shares of each
such class then so issuable shall be substantially in the proportion which the total number of
shares of such class resulting from all such reclassifications bears to the total number of shares
of all such classes resulting from all such reclassifications.

     “Company” means Cadence Design Systems, Inc., a Delaware corporation, and subject to the
provisions of Article 10 and Section 13.05, its successors and assigns.

3

 

     “Company Order” means a written order of the Company, signed by (a) the Company’s Chief
Executive Officer, President, Executive or Senior Vice President, Managing Director or any Vice
President (whether or not designated by a number or numbers or word or words added before or after
the title “Vice President”) and (b) any such other officer designated in (a) or the Company’s
Treasurer or Assistant Treasurer or Secretary or any Assistant Secretary, and delivered to the
Trustee.

     “Conversion Agent” shall have the meaning specified in Section 3.02.

      “Conversion Date”
shall have the meaning specified in Section 13.02(c).

      “Conversion Obligation” shall have
the meaning specified in Section 13.01(a).

     “Conversion Price” means as of any date $1,000 divided by the Conversion Rate as
of such date.

     “Conversion Rate” shall have the meaning specified in Section 13.01(a).

     “Conversion Rate Cap” shall have the meaning specified in Section 13.03(m).

     “Corporate Trust Office” or other similar term means the principal corporate trust office of
the Trustee at which at any particular time its corporate trust business shall be principally
administered, which office is, at the date as of which this Indenture is dated, located at 60 Wall
Street — 27th Floor, New York, New York 10005, Attention: Trust and Securities Services;
Re: Cadence Design Systems, Inc.

     “Custodian” means Deutsche Bank Trust Company Americas, as custodian for The Depository Trust
Company, with respect to the Notes in global form, or any successor entity thereto.

     “Daily Conversion Value” means, for each of the 20 consecutive Trading Days during the
Observation Period, one-twentieth (1/20) of the product of (a) the applicable Conversion Rate and
(b) the Daily VWAP of the Common Stock (or the Reference Property pursuant to Section 13.05) on
such day, as determined by the Company.

     “Daily Settlement Amount,” for each of the 20 Trading Days during the Observation Period,
shall consist of:

     (i) cash equal to the lesser of $50 and the Daily Conversion Value relating to such
day; and

4

 

     (ii) if such Daily Conversion Value exceeds $50, a number of shares of Common
Stock equal to (A) the difference between such Daily Conversion Value and $50, divided by (B) the
Daily VWAP of the Common Stock for such day.

     “Daily VWAP” for the Common Stock means, for each of the 20 consecutive Trading Days during
the Observation Period, the per share volume-weighted average price as displayed under the heading
“Bloomberg VWAP” on Bloomberg (or any successor service) page CDNS.UQ <equity> AQR in respect
of the period from 9:30 a.m. to 4:00 p.m. (New York City time) on such Trading Day (or if such
volume-weighted average price is unavailable, the market value of one share of Common Stock on such
Trading Day as determined by the Board of Directors in good faith using a volume-weighted method or
by a nationally recognized independent investment banking firm retained for this purpose by the
Company).

     “Day” or “day” means a calendar day unless the context otherwise requires or as
expressly stated.

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

     “Defaulted Interest” shall have the meaning specified in Section 2.03.

     “Depositary” means, with respect to the Notes issuable or issued in whole or in part in global
form, the person specified in Section 2.06(d) as the Depositary with respect to such Notes, until a
successor shall have been appointed and become such pursuant to the applicable provisions of this
Indenture, and thereafter, “Depositary” shall mean or include such successor.

     “Distributed Property” shall have the meaning specified in Section 13.03(c).

     “Effective Date” shall have the meaning specified in Section 13.01(e)(ii).

     “Event of Default” means, with respect to the Notes, any event specified in Section 5.01,
continued for the period of time, if any, and after the giving of notice, if any, therein
designated.

     “Extension Fee” shall have the meaning specified in Section 5.01.

     “Ex-Dividend Date” means, (a) with respect to Section 13.01(b), the first date upon which a
sale of the Common Stock does not automatically transfer the right to receive the relevant dividend
from the seller of the Common Stock to its buyer, and (b) in all other cases, with respect to any
issuance or distribution on the Common Stock or any other equity security, the first date on which
the shares of Common Stock or such other equity security trade on the applicable exchange or

5

 

in the applicable market, regular way, without the right to receive such issuance or
distribution.

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

     “First Extension Period” shall have the meaning specified in Section 5.01

     “Filing Default” shall have the meaning specified in Section 5.01.

      “Financial Institution”
shall have the meaning specified in Section 13.10.

      “Filing Default Date” shall have the
meaning specified in Section 5.01.

     “Filing Default Payment Date” shall have the meaning specified in Section 5.01.

     “Fundamental Change” means the occurrence of any transaction or event (whether by means of an
exchange offer, liquidation, tender offer, consolidation, merger, combination, reclassification,
recapitalization or otherwise) in connection with which more than 50% of the Common Stock is
exchanged for, converted into, acquired for or constitutes solely the right to receive,
consideration which is not at least 90% shares of common stock, or depositary receipts representing
such shares, that are listed on, or immediately after the transaction or event, will be listed on,
a U.S. national securities exchange or approved, or immediately after the occurrence of the
transaction or event, will be approved, for quotation on a U.S. system of automated dissemination
of quotations of securities prices similar to the NASDAQ National Market prior to its designation
as a national securities exchange.

     “Fundamental Change Repurchase Company Notice” shall have the meaning specified in Section
14.01(b).

     “Fundamental Change Expiration Time” shall have the meaning specified in Section
14.01(a).

     “Fundamental Change Repurchase Date” shall have the meaning specified in Section
14.01(a).

     “Fundamental Change Repurchase Notice” shall have the meaning specified in Section
14.01(a)(i).

     “Fundamental Change Repurchase Price” shall have the meaning specified in Section 14.01
(a).

6

 

     “Global Note” shall have the meaning specified in Section 2.06(b).

     “Indebtedness” as applied to any Person, means (i) obligations, contingent or otherwise, for
money borrowed (other than unamortized debt discount or premium); (ii) reimbursement and other
obligations pertaining to letters of credit issued for the account of such Person; (iii)
obligations under any swap, cap, collar, forward purchase contract, derivatives contract or other
similar agreement pursuant to which such Person hedges risks related to interest rates, currency
exchange rates, commodity prices, financial market conditions or other risks incurred by such
Person in the operation of its business; (iv) obligations evidenced by bonds, debentures,
promissory notes or other instruments or arrangements; (v) obligations as lessee under a Capital
Lease; and (vi) obligations of such Person under any amendments, renewals, extensions,
modifications and refundings of any such Indebtedness or obligations listed in clause (i), (ii),
(iii), (iv) or (v) above. All Indebtedness of any type described in the immediately preceding
sentence which is secured by a lien upon property owned by such Person, although such Person has
not assumed or become liable for the payment of such Indebtedness, shall for all purposes be deemed
to be Indebtedness of such Person. All Indebtedness for borrowed money incurred by any other
Persons which is directly guaranteed as to payment of principal by such Person shall for all
purposes be deemed to be Indebtedness of such Person, but no other contingent obligation of such
Person in respect of Indebtedness incurred by any other Persons shall for any purpose be deemed to
be Indebtedness of such Person.

     “Indenture” means this instrument as originally executed or, if amended or supplemented as
herein provided, as so amended or supplemented.

     “Initial Purchasers” means Merrill Lynch, Pierce, Fenner & Smith Incorporated, Morgan Stanley
& Co. Incorporated, J.P. Morgan Securities Inc. and Deutsche Bank Securities Inc.

     “Interest Payment Date” means June 15 and December 15 of each year, beginning on June 15,
2007.

     “Last Reported Sale Price” means, with respect to the Common Stock or any other security for
which a Last Reported Sale Price must be determined, on any date, the closing sale price per share
of the Common Stock or unit of such other security (or, if no closing sale price is reported, the
average of the closing bid and closing ask prices or, if more than one in either case, the average
of the average closing bid and the average closing ask prices) on such date as reported in
composite transactions for the principal U.S. national or regional securities exchange on which the
Common Stock or such other security is traded. If the Common Stock or such other security is not
listed for trading on a U.S. national or regional securities exchange on the relevant date, the
Last Reported Sale Price shall be the closing quoted bid price per share of Common Stock or such
other

7

 

security in the over-the-counter market on the relevant date, as reported by the National
Quotation Bureau or similar organization. In the absence of such quotation, the Last Reported Sale
Price shall be the average of the mid-point of the closing bid and ask prices for the Common Stock
or such other security on the relevant date from each of at least three nationally recognized
independent investment banking firms (which may include all or any of the Initial Purchasers)
selected from time to time by the Company for that purpose. The Last Reported Sale Price shall be
determined without reference to extended or after hours trading.

     “Market Disruption Event” means the occurrence or existence for more than a one-half hour
period in the aggregate on any scheduled Trading Day for the Common Stock of any suspension or
limitation imposed on trading (by reason of movements in price exceeding limits permitted by the
stock exchange or otherwise) in the Common Stock or in any options, contracts or future contracts
relating to the Common Stock, and such suspension or limitation occurs or exists at any time before
1:00 p.m. (New York City time) on such day.

     “Maturity Date” means December 15, 2013.

     “Measurement
Period” shall have the meaning specified in Section
13.01(a)(i).

     “Merger Event” shall have the meaning specified in Section 13.05.

     “NASDAQ Global Select Market” shall mean the NASDAQ Global Select Market of The NASDAQ Stock
Market, Inc. and any successor market or exchange.

     “Note” or “Notes” means any note or notes, as the case may be, authenticated and
delivered under this Indenture.

     “Noteholder” or “holder,” as applied to any Note, or other similar terms (but excluding the
term “beneficial holder”), means any person in whose name at the time a particular Note is
registered on the Note Register.

     “Note Register” shall have the meaning specified in Section 2.06(a).

      “Note Registrar”
shall have the meaning specified in Section 2.06(a).

     “Notice of Conversion” shall have the meaning specified in Section 13.02(c).

     “Observation Period” means:

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     (i) for Notes that are converted after the 23rd scheduled Trading Day prior to
the Maturity Date, the 20 consecutive Trading Day period beginning on the third Trading Day
following the 23rd scheduled Trading Day prior to the Maturity Date; and

     (ii) in all other instances, the 20 consecutive Trading Day period beginning on and
including the second Trading Day after the related Conversion Date in respect of such Note.

     “Officers’ Certificate,” when used with respect to the Company, means a certificate delivered
to the Trustee and signed by (a) one of the President, the Chief Executive Officer, any Executive
or Senior Vice President, Managing Director or any Vice President (whether or not designated by a
number or numbers or word added before or after the title “Vice President”) and (b) by any such
other officer designated in (a) or by one of the Treasurer or any Assistant Treasurer, Secretary or
any Assistant Secretary or Controller of the Company. Each such certificate shall include the
statements provided for in Section 15.05 if and to the extent required by the provisions of such
Section. One of the officers giving an Officers’ Certificate pursuant to Section 3.08 shall be the
principal executive, financial or accounting officer of the Company.

     “Opinion of Counsel” means an opinion in writing signed by legal counsel, who may be an
employee of or counsel to the Company, or other counsel acceptable to the Trustee, which is
delivered to the Trustee. Each such opinion shall include the statements provided for in Section
15.05 if and to the extent required by the provisions of such Section.

     “outstanding,” when used with reference to Notes, shall, subject to the provisions of Section
7.04, mean, as of any particular time, all Notes authenticated and delivered by the Trustee under
this Indenture, except:

     (i) Notes theretofore canceled by the Trustee or accepted by the Trustee for
cancellation,

     (ii) Notes, or portions thereof, for the payment or repurchase of which monies in the
necessary amount shall have been deposited in trust with the Trustee or with any Paying Agent
(other than the Company) or shall have been set aside and segregated in trust by the Company (if
the Company shall act as its own Paying Agent);

     (iii) Notes in lieu of which, or in substitution for which, other Notes shall have been
authenticated and delivered pursuant to the terms of Section 2.07 unless proof satisfactory to the
Trustee is presented that any such Notes are held by protected purchasers in due course; and

9

 

     (iv) Notes converted pursuant to Article 13.

     “Paying Agent” shall have the meaning specified in Section 3.02.

     “Person” means an individual, a corporation, a limited liability company, an association, a
partnership, a joint venture, a joint stock company, a trust, an unincorporated organization or a
government or an agency or a political subdivision thereof, including any syndicate or group that
would be deemed to be a “person” under Section 13(d)(3) of the Exchange Act.

     “Predecessor Note” of any particular Note means every previous Note evidencing all or a
portion of the same debt as that evidenced by such particular Note; and, for the purposes of this
definition, any Note authenticated and delivered under Section 2.07 in lieu of a lost, destroyed or
stolen Note shall be deemed to evidence the same debt as the lost, destroyed or stolen Note that it
replaces.

     “Purchase Agreement” means that certain Purchase Agreement dated December 14, 2006 among the
Company and the Initial Purchasers.

     “record date,” with respect to the payment of interest on any Interest Payment Date, shall
have the meaning specified in Section 2.03 and, with respect to adjustments of the Conversion Rate,
shall have the meaning specified in Section 13.03(f).

     “Reference Property” shall have the meaning specified in Section 13.05(b).

     “Registration Rights Agreement” means the Registration Rights Agreement, dated as of December
19, 2006, between the Company and the Initial Purchasers, for the benefit of themselves and the
Noteholders, as the same may be amended or modified from time to time in accordance with the terms
thereof.

     “Responsible Officer,” when used with respect to the Trustee, shall mean an officer of the
Trustee in the Corporate Trust Office, having direct responsibility for the administration of this
Indenture, and also, with respect to a particular matter, any other officer to whom such matter is
referred because of such officer’s knowledge of and familiarity with the particular subject.

     “Restricted Securities” has the meaning specified in Section 2.06(e).

     “Rule 144” means Rule 144 under the Securities Act (including any successor rule
thereto), as the same may be amended from time to time.

     “Rule 144A” means Rule 144A under the Securities Act (including any successor rule thereto),
as the same may be amended from time to time.

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

     “Spin-Off”
shall have the meaning specified in Section 13.03(c).

     “Significant Subsidiary” means such Subsidiary of the Company as meets the definition of
“significant subsidiary” in Rule 1-02 of Regulation S-X promulgated by the Commission.

     “Stock Price” means the price paid per share of Common Stock in connection with a Fundamental
Change pursuant to which Additional Shares shall be added to the Conversion Rate as set forth in
Section 13.01(d) hereof, which shall be equal to (i) if holders of Common Stock receive only cash
in such Fundamental Change, the cash amount paid per share of Common Stock and (ii) in all other
cases, the average of the Last Reported Sale Prices of the Common Stock over the ten consecutive
Trading Day period ending on the Trading Day preceding the Effective Date.

     “Subsidiary” of the Company means (i) a corporation a majority of whose Capital Stock with
voting power, under ordinary circumstances, to elect directors is at the time, directly or
indirectly, owned by the Company, by the Company and one or more Subsidiaries of the Company or by
one or more Subsidiaries of the Company or (ii) any other Person (other than a corporation) in
which the Company, one or more Subsidiaries of the Company or the Company and one or more
Subsidiaries of the Company, directly or indirectly, at the date of determination thereof, has
greater than a 50% ownership interest.

     “Successor Company” shall have the meaning specified in Section 10.01(a).

     “Trading Day” means a day during which (a) trading in the Common Stock generally occurs, (b)
there is no Market Disruption Event and (c) a Last Reported Sale Price for the Common Stock (other
than a Last Reported Sale Price referred to in the penultimate sentence of the definition of Last
Reported Sale Price) is available for such day.

     “Trading Price” with respect to the Notes, on any date of determination, means the average of
the secondary market bid quotations obtained by the Trustee for $2.0 million principal amount of
Notes at approximately 3:30 p.m., New York City time, on such determination date from three
independent nationally recognized securities dealers selected by the Company (which may include any
or all of the Initial Purchasers); provided that if three such bids cannot reasonably be obtained
by the Trustee, but two such bids are obtained, then the average of the two bids shall be used, and
if only one such bid can reasonably be obtained by the Trustee, that one bid shall be used. If the
Trustee cannot reasonably obtain at

11

 

least one bid for $2.0 million principal amount of Notes from a nationally recognized securities
dealer, then the Trading Price per $1,000 principal amount of Notes will be deemed to be less than
98% of the product of the Last Reported Sale Price of the Common Stock (as provided to the Trustee
by the Company) and the Conversion Rate.

     “Trigger
Event” shall have the meaning specified in Section 13.03(c).

     “Trust Indenture Act” means the Trust Indenture Act of 1939, as amended, as it was in force at
the date of execution of this Indenture; provided however, that in the event the Trust Indenture
Act of 1939 is amended after the date hereof, the term “Trust Indenture Act” shall mean, to the
extent required by such amendment, the Trust Indenture Act of 1939, as so amended.

     “Trustee” means Deutsche Bank Trust Company Americas, and its successors and any corporation
resulting from or surviving any consolidation or merger to which it or its successors may be a
party and any successor trustee at the time serving as successor trustee hereunder.

     Section 1.02. Incorporation by Reference of Trust Indenture Act.

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

     “indenture securities” means the Notes.

     “indenture security holder” means a Noteholder or 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 and any other obligor on the
indenture securities.

     All other terms in this Indenture that are defined by the Trust Indenture Act, defined by it
by reference to another statute or defined by Commission rule have the meanings assigned to them by
such definitions. If any provision hereof limits, qualifies or conflicts with another provision
hereof which is required to be included in this Indenture by the Trust Indenture Act, such required
provision shall control.

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ARTICLE 2

Issue, Description, Execution, Registration and Exchange of Notes

     Section 2.01. Designation and Amount. The Notes shall be designated as the “1.500%
Convertible Senior Notes due 2013.” The aggregate principal amount of Notes that may be
authenticated and delivered under this Indenture is initially limited to $250,000,000, subject to
Section 2.11 and except for Notes authenticated and delivered upon registration or transfer of, or
in exchange for, or in lieu of other Notes pursuant to Section 2.06, Section 2.07, Section 9.04 and
Section 13.02.

     Section 2.02. Form of Notes. The Notes and the Trustee’s certificate of authentication to be
borne by such Notes shall be substantially in the form set forth in Exhibit A.

     Any of the Notes may have such letters, numbers or other marks of identification and such
notations, legends or endorsements as the officers executing the same may approve (execution
thereof to be conclusive evidence of such approval) and as are not inconsistent with the provisions
of this Indenture, or as may be required by the Custodian, the Depositary or by the National
Association of Securities Dealers, Inc. in order for the Notes to be tradable on The PORTAL Market
or as may be required for the Notes to be tradable on any other market developed for trading of
securities pursuant to Rule 144A or as may be required to comply with any applicable law or with
any rule or regulation made pursuant thereto or with any rule or regulation of any securities
exchange or automated quotation system on which the Notes may be traded, or to conform to usage, or
to indicate any special limitations or restrictions to which any particular Notes are subject.

     The Global Note shall represent such principal amount of the outstanding Notes as shall be
specified therein and shall provide that it shall represent the aggregate principal amount of
outstanding Notes from time to time endorsed thereon and that the aggregate principal amount of
outstanding Notes represented thereby may from time to time be increased or reduced to reflect
repurchases, conversions, transfers or exchanges permitted hereby. Any endorsement of the Global
Note to reflect the amount of any increase or decrease in the amount of outstanding Notes
represented thereby shall be made by the Trustee or the Custodian, at the direction of the Trustee,
in such manner and upon instructions given by the holder of such Notes in accordance with this
Indenture. Payment of principal and accrued and unpaid interest on the Global Note shall be made to
the holder of such Note on the date of payment, unless a record date or other means of determining
holders eligible to receive payment is provided for herein.

     The terms and provisions contained in the form of Note attached as Exhibit A hereto are
incorporated herein and shall constitute, and are hereby

13

 

expressly made, a part of this Indenture and to the extent applicable, the Company and the
Trustee, by their execution and delivery of this Indenture, expressly agree to such terms and
provisions and to be bound thereby.

     Section 2.03. Date and Denomination of Notes; Payments of Interest. The Notes shall be
issuable in registered form without coupons in denominations of $1,000 principal amount and
integral multiples thereof. Each Note shall be dated the date of its authentication and shall bear
interest from the date specified on the face of the form of Note attached as Exhibit A hereto.
Interest on the Notes shall be computed on the basis of a 360-day year comprised of twelve 30-day
months.

     The Person in whose name any Note (or its Predecessor Note) is registered on the Note Register
at the Close of Business on any record date with respect to any Interest Payment Date shall be
entitled to receive the interest payable on such Interest Payment Date. Interest shall be payable
at the office of the Company maintained by the Company for such purposes in the Borough of
Manhattan, City of New York, which shall initially be an office or agency of the Trustee. The
Company shall pay interest (i) on any Notes in certificated form by check mailed to the address of
the Person entitled thereto as it appears in the Note Register (or upon written application by such
Person to the Note Registrar not later than the relevant record date, by wire transfer in
immediately available funds to such Person’s account within the United States, if such Person is
entitled to interest on an aggregate principal in excess of $1,000,000) or (ii) on any Global Note
by wire transfer of immediately available funds to the account of the Depositary or its nominee.
The term “record date” with respect to any Interest Payment Date shall mean the June 1 and December
1 preceding the applicable June 15 or December 15 Interest Payment Date, respectively.

     Any interest on any Note which is payable, but is not punctually paid or duly provided for, on
any Interest Payment Date (herein called “Defaulted Interest”) shall forthwith cease to be payable
to the Noteholder on the relevant record date by virtue of his having been such Noteholder, and
such Defaulted Interest shall be paid by the Company, at its election in each case, as provided in
clause (1) or (2) below:

     (1) The Company may elect to make payment of any Defaulted Interest to the Persons in
whose names the Notes (or their respective Predecessor Notes) are registered at the Close of
Business on a special record date for the payment of such Defaulted Interest, which shall be fixed
in the following manner. The Company shall notify the Trustee in writing of the amount of Defaulted
Interest proposed to be paid on each Note and the date of the proposed payment (which shall be not
less than twenty-five (25) days after the receipt by the Trustee of such notice, unless the Trustee
shall consent to an earlier date), and at the same time the Company shall deposit with the Trustee
an amount of money equal to the

14

 

aggregate amount to be paid in respect of such Defaulted Interest or shall make arrangements
satisfactory to the Trustee for such deposit on or 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 Company shall fix a special record date for the
payment of such Defaulted Interest which shall be not more than fifteen (15) days and not less than
ten (10) days prior to the date of the proposed payment, and not less than ten (10) days after the
receipt by the Trustee of the notice of the proposed payment. The Company shall promptly notify the
Trustee in writing of such special record date and the Trustee, in the name and at the expense of
the Company, shall cause notice of the proposed payment of such Defaulted Interest and the special
record date therefor to be mailed, first-class postage prepaid, to each holder at his address as it
appears in the Note Register, not less than ten (10) days prior to such special record date. Notice
of the proposed payment of such Defaulted Interest and the special record date therefor having been
so mailed, such Defaulted Interest shall be paid to the Persons in whose names the Notes (or their
respective Predecessor Notes) are registered at the Close of Business on such special record date
and shall no longer be payable pursuant to the following clause (2) of this Section 2.03.

     (2) The Company may make payment of any Defaulted Interest in any other lawful manner
not inconsistent with the requirements of any securities exchange or automated quotation system on
which the Notes may be listed or designated for issuance, and upon such notice as may be required
by such exchange or automated quotation system, if, after notice given by the Company to the
Trustee of the proposed payment pursuant to this clause, such manner of payment shall be deemed
practicable by the Trustee.

     Section 2.04. Date and Denomination of Notes. The Notes shall be issuable in fully registered
form without coupons in denominations of $1,000 principal amount and integral multiples thereof.
Every Note shall be dated the date of its authentication.

     Section 2.05. Execution, Authentication and Delivery of Notes. The Notes shall be signed in
the name and on behalf of the Company by the manual or facsimile signature of its Chairman or
Vice-Chairman of the Board of Directors, Chief Executive Officer, President, any of its Executive
or Senior Vice Presidents, Managing Director, or any of its Vice Presidents (whether or not
designated by a number or numbers or word or words added before or after the title “Vice
President”).

     At any time and from time to time after the execution and delivery of this Indenture, the
Company may deliver Notes executed by the Company to the Trustee for authentication, together with
a Company Order for the authentication and delivery of such Notes, and the Trustee in accordance
with such Company

15

 

Order shall authenticate and deliver such Notes, without any further action by the Company
hereunder.

     Only such Notes as shall bear thereon a certificate of authentication substantially in the
form set forth on the form of Note attached as Exhibit A hereto, manually executed by the Trustee
(or an authenticating agent appointed by the Trustee as provided by Section 15.10), shall be
entitled to the benefits of this Indenture or be valid or obligatory for any purpose. Such
certificate by the Trustee (or such an authenticating agent) upon any Note executed by the Company
shall be conclusive evidence that the Note so authenticated has been duly authenticated and
delivered hereunder and that the holder is entitled to the benefits of this indenture.

     In case any officer of the Company who shall have signed any of the Notes shall cease to be
such officer before the Notes so signed shall have been authenticated and delivered by the Trustee,
or disposed of by the Company, such Notes nevertheless may be authenticated and delivered or
disposed of as though the person who signed such Notes had not ceased to be such officer of the
Company; and any Note may be signed on behalf of the Company by such persons as, at the actual date
of the execution of such Note, shall be the proper officers of the Company, although at the date of
the execution of this Indenture any such person was not such an officer.

     The Trustee shall have the right to decline to authenticate and deliver any Notes under this
Section if the Trustee, being advised by counsel of national reputation, determines that such
action may not lawfully be taken or if the Trustee in good faith shall determine that such action
would expose the Trustee to personal liability to existing Noteholders.

     Section 2.06. Exchange and Registration of Transfer of Notes; Restrictions on
Transfer; Depositary.

     (a) The Company shall cause to be kept at the Corporate Trust Office a register
(the register maintained in such office and in any other office or agency of the Company designated
pursuant to Section 3.02 being herein sometimes collectively referred to as the “Note Register”) in
which, subject to such reasonable regulations as it may prescribe, the Company shall provide for
the registration of Notes and transfers of Notes. Such register shall be in written form or in any
form capable of being converted into written form within a reasonable period of time. The Trustee
is hereby appointed “Note Registrar” for the purpose of registering Notes and transfers of Notes as
herein provided. The Company may appoint one or more co-registrars in accordance with Section 3.02.

     Upon surrender for registration of transfer of any Note to the Note Registrar or any
co-registrar, and satisfaction of the requirements for such transfer

16

 

set forth in this Section 2.06, the Company shall execute, and the Trustee shall authenticate and
deliver, in the name of the designated transferee or transferees, one or more new Notes of any
authorized denominations and of a like aggregate principal amount and bearing such restrictive
legends as may be required by this Indenture.

     Notes may be exchanged for other Notes of any authorized denominations and of a like aggregate
principal amount, upon surrender of the Notes to be exchanged at any such office or agency
maintained by the Company pursuant to Section 3.02. Whenever any Notes are so surrendered for
exchange, the Company shall execute, and the Trustee shall authenticate and deliver, the Notes
which the Noteholder making the exchange is entitled to receive, bearing registration numbers not
contemporaneously outstanding.

     All Notes presented or surrendered for registration of transfer or for exchange, repurchase or
conversion shall (if so required by the Company, the Trustee, the Note Registrar or any
co-registrar) be duly endorsed, or be accompanied by a written instrument or instruments of
transfer in form satisfactory to the Company and duly executed, by the Noteholder thereof or his
attorney-in-fact duly authorized in writing.

     No service charge shall be charged to the Noteholder for any exchange or registration of
transfer of Notes, but the Company or the Trustee may require payment of a sum sufficient to cover
any tax, assessments or other governmental charges that may be imposed in connection therewith.

     None of the Company, the Trustee, the Note Registrar or any co-registrar shall be required to
exchange or register a transfer of (a) any Notes surrendered for conversion or, if a portion of any
Note is surrendered for conversion, such portion thereof surrendered for conversion or (b) any
Notes, or a portion of any Note, surrendered for repurchase (and not withdrawn) except in
accordance with Article 8 for conversion and Article 14 for repurchase hereof, respectively.

     All Notes issued upon any registration of transfer or exchange of Notes in accordance with
this Indenture shall be the valid obligations of the Company, evidencing the same debt, and
entitled to the same benefits under this Indenture as the Notes surrendered upon such registration
of transfer or exchange.

     (b) So long as the Notes are eligible for book-entry settlement with the Depositary,
unless otherwise required by law, all Notes shall be represented by one or more Notes in global
form (each, a “Global Note”) registered in the name of the Depositary or the nominee of the
Depositary. The transfer and exchange of beneficial interests in a Global Note, which does not
involve the issuance of a definitive Note, shall be effected through the Depositary (but not the
Trustee or

17

 

the Custodian) in accordance with this Indenture (including the restrictions on transfer set forth
herein) and the procedures of the Depositary therefor.

     (c) Any Global Note may be endorsed with or have incorporated in the
text thereof such legends or recitals or changes not inconsistent with the
provisions of this Indenture as may be required by the Custodian, the Depositary
or by the National Association of Securities Dealers, Inc. to comply with any
applicable law or any regulation thereunder or with the rules and regulations of
any securities exchange or automated quotation system upon which the Notes
may be listed or traded or designated for issuance or to conform with any usage
with respect thereto, or to indicate any special limitations or restrictions to which
any particular Notes are subject.

     Notwithstanding any other provisions of this Indenture, a Global Note may not be transferred
as a whole or in part except by the Depositary to a nominee of the Depositary or by a nominee of
the Depositary to the Depositary or another nominee of the Depositary or by the Depositary or any
such nominee to a successor Depositary or a nominee of such successor Depositary.

     (d) The Depositary shall be a clearing agency registered under the
Exchange Act. The Company initially appoints The Depository Trust Company
to act as Depositary with respect to the Global Note. Initially, the Global Note
shall be issued to the Depositary, registered in the name of Cede & Co., as the
nominee of the Depositary, and deposited with the Trustee as custodian for Cede
& Co.

     If at any time the Depositary for a Global Note (i) notifies the Company that it is unwilling
or unable to continue as Depositary for such Note or (ii) ceases to be registered as a clearing
agency under the Exchange Act, the Company may appoint a successor Depositary with respect to such
Note. If (1) a successor Depositary for such Global Note is not appointed by the Company within
ninety (90) days after the Company receives such notice or the Depositary ceasing to be a
registered clearing agency or (2) an Event of Default has occurred and is continuing and the Note
Registrar has received a request from the Depositary for the issuance of Notes in definitive form
in exchange for a Global Note, the Company will execute, and the Trustee, upon receipt of an
Officers’ Certificate for the authentication and delivery of Notes, will authenticate and deliver
Notes in definitive form in an aggregate principal amount equal to the principal amount of such
Global Note, in exchange for such Global Note, and upon delivery of the Global Note to the Trustee
such Global Note shall be canceled.

     Definitive Notes issued in exchange for all or a part of the Global Note pursuant to this
Section 2.06(d) shall be registered in such names and in such authorized denominations as the
Depositary, pursuant to instructions from its direct or indirect participants or otherwise, shall
instruct the Trustee. Upon

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execution and authentication, the Trustee shall deliver such definitive Notes to the persons
in whose names such definitive Notes are so registered.

     At such time as all interests in a Global Note have been converted, canceled, repurchased or
transferred, such Global Note shall be, upon receipt thereof, canceled by the Trustee in accordance
with standing procedures and instructions existing between the Depositary and the Custodian. At any
time prior to such cancellation, if any interest in a Global Note is exchanged for definitive
Notes, converted, canceled, repurchased or transferred to a transferee who receives definitive
Notes therefor or any definitive Note is exchanged or transferred for part of such Global Note, the
principal amount of such Global Note shall, in accordance with the standing procedures and
instructions existing between the Depositary and the Custodian, be appropriately reduced or
increased, as the case may be, and an endorsement shall be made on such Global Note, by the Trustee
or the Custodian, at the direction of the Trustee, to reflect such reduction or increase.

     (e) Every Note that bears or is required under this Section 2.06(e) to bear the legend
set forth in this Section 2.06(e) (together with any Common Stock issued upon conversion of the
Notes and required to bear the legend set forth in Section 2.06(e), collectively, the “Restricted
Securities”) shall be subject to the restrictions on transfer set forth in this Section 2.06(e)
(including those set forth in the legend below) unless such restrictions on transfer shall be
waived by written consent of the Company, and the holder of each such Restricted Security, by such
Note holder’s acceptance thereof, agrees to be bound by all such restrictions on transfer. As used
in Section 2.06(e) and Section 2.06(f), the term “transfer” means any sale, pledge, loan, transfer
or other disposition whatsoever of any Restricted Security or any interest therein.

     Until the expiration of the holding period applicable to sales of Notes under Rule 144(k), any
certificate evidencing a Note (and all securities issued in exchange therefor or substitution
thereof, other than Common Stock, if any, issued upon conversion thereof, which shall bear the
legend set forth in Section 2.06(e), if applicable) shall bear a legend in substantially the
following form, unless such Note has been sold pursuant to a registration statement that has become
effective under the Securities Act (and which continues to be effective at the time of such
transfer) or sold pursuant to Rule 144, or unless otherwise agreed by the Company in writing, with
written notice thereof to the Trustee:

     THE NOTE EVIDENCED HEREBY HAS NOT BEEN REGISTERED UNDER THE UNITED STATES SECURITIES ACT OF
1933, AS AMENDED (THE “SECURITIES ACT”), OR ANY STATE SECURITIES LAWS AND, ACCORDINGLY, MAY NOT BE
OFFERED OR SOLD EXCEPT AS SET FORTH IN THE FOLLOWING SENTENCE. BY ITS ACQUISITION HEREOF, THE
HOLDER (1) REPRESENTS THAT IT IS A “QUALIFIED

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INSTITUTIONAL BUYER” (AS DEFINED IN RULE 144A UNDER THE SECURITIES ACT); (2) AGREES THAT IT WILL
NOT, PRIOR TO EXPIRATION OF THE HOLDING PERIOD APPLICABLE TO SALES OF THIS NOTE UNDER RULE 144(k)
UNDER THE SECURITIES ACT (OR ANY SUCCESSOR PROVISION), RESELL OR OTHERWISE TRANSFER THIS NOTE OR
THE COMMON STOCK ISSUABLE UPON CONVERSION OF THIS NOTE EXCEPT (A) TO CADENCE DESIGN SYSTEMS, INC.
OR ANY SUBSIDIARY THEREOF, (B) TO A QUALIFIED INSTITUTIONAL BUYER IN COMPLIANCE WITH RULE 144A
UNDER THE SECURITIES ACT, (C) PURSUANT TO THE EXEMPTION FROM REGISTRATION PROVIDED BY RULE 144
UNDER THE SECURITIES ACT (IF AVAILABLE) OR (D) PURSUANT TO A REGISTRATION STATEMENT WHICH HAS
BECOME EFFECTIVE UNDER THE SECURITIES ACT (AND WHICH CONTINUES TO BE EFFECTIVE AT THE TIME OF SUCH
TRANSFER); (3) PRIOR TO SUCH TRANSFER (OTHER THAN A TRANSFER PURSUANT TO CLAUSE 2(D) ABOVE), IT
WILL FURNISH TO DEUTSCHE BANK TRUST COMPANY AMERICAS, AS TRUSTEE (OR A SUCCESSOR TRUSTEE, AS
APPLICABLE), SUCH CERTIFICATIONS, LEGAL OPINIONS OR OTHER INFORMATION AS THE TRUSTEE MAY REASONABLY
REQUIRE 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; AND (4) AGREES
THAT IT WILL DELIVER TO EACH PERSON TO WHOM THIS NOTE IS TRANSFERRED A NOTICE SUBSTANTIALLY TO THE
EFFECT OF THIS LEGEND. IN CONNECTION WITH ANY TRANSFER OF THIS NOTE PRIOR TO THE EXPIRATION OF THE
HOLDING PERIOD APPLICABLE TO SALES OF THIS NOTE UNDER RULE 144(k) UNDER THE SECURITIES ACT (OR ANY
SUCCESSOR PROVISION), THE HOLDER MUST CHECK THE APPROPRIATE BOX SET FORTH ON THE REVERSE HEREOF
RELATING TO THE MANNER OF SUCH TRANSFER AND SUBMIT THIS CERTIFICATE TO DEUTSCHE BANK TRUST COMPANY
AMERICAS, AS TRUSTEE (OR A SUCCESSOR TRUSTEE, AS APPLICABLE). THIS LEGEND WILL BE REMOVED UPON THE
EARLIER OF THE TRANSFER OF THIS NOTE PURSUANT TO CLAUSE 2(D) ABOVE OR UPON ANY TRANSFER OF THIS
NOTE UNDER RULE 144 UNDER THE SECURITIES ACT (OR ANY SUCCESSOR PROVISION). THE INDENTURE CONTAINS A
PROVISION REQUIRING THE TRUSTEE TO REFUSE TO REGISTER ANY TRANSFER OF THIS NOTE IN VIOLATION OF THE
FOREGOING RESTRICTION.

     Any Note (or security issued in exchange or substitution therefor) as to which such
restrictions on transfer shall have expired in accordance with their terms or as to conditions
for removal of the foregoing legend set forth therein

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have been satisfied may, upon surrender of such Note for exchange to the Note Registrar in
accordance with the provisions of this Section 2.06, be exchanged for a new Note or Notes, of like
tenor and aggregate principal amount, which shall not bear the restrictive legend required by this
Section 2.06(e). If the Restricted Security surrendered for exchange is represented by a Global
Note bearing the legend set forth in this Section 2.06(e), the principal amount of the legended
Global Note shall be reduced by the appropriate principal amount and the principal amount of a
Global Note without the legend set forth in this Section 2.06(e) shall be increased by an equal
principal amount. If a Global Note without the legend set forth in this Section 2.06(e) is not then
outstanding, the Company shall execute and the Trustee shall authenticate and deliver an unlegended
Global Note to the Depositary.

     (f) Until the expiration of the holding period applicable to sales thereof under Rule
144(k), any stock certificate representing Common Stock issued upon conversion of any Note shall
bear a legend in substantially the following form, unless such Common Stock has been sold pursuant
to a registration statement that has become effective under the Securities Act (and which continues
to be effective at the time of such transfer) or pursuant to Rule 144, or such Common Stock has
been issued upon conversion of Notes that have been transferred pursuant to a registration
statement that has become effective under the Securities Act or pursuant to Rule 144, or unless
otherwise agreed by the Company in writing with written notice thereof to the transfer agent:

     THE COMMON STOCK EVIDENCED HEREBY HAS NOT BEEN REGISTERED UNDER THE UNITED STATES SECURITIES
ACT OF 1933, AS AMENDED (THE “SECURITIES ACT”), OR ANY STATE SECURITIES LAWS AND, ACCORDINGLY, MAY
NOT BE OFFERED OR SOLD EXCEPT AS SET FORTH IN THE FOLLOWING SENTENCE. THE HOLDER HEREOF AGREES
THAT, UNTIL THE EXPIRATION OF THE HOLDING PERIOD APPLICABLE TO SALES OF THE COMMON STOCK EVIDENCED
HEREBY UNDER RULE 144(k) UNDER THE SECURITIES ACT (OR ANY SUCCESSOR PROVISION), (1) IT WILL NOT
RESELL OR OTHERWISE TRANSFER THE COMMON STOCK EVIDENCED HEREBY EXCEPT (A) TO CADENCE DESIGN
SYSTEMS, INC. OR ANY SUBSIDIARY THEREOF, (B) TO A “QUALIFIED INSTITUTIONAL BUYER” (AS DEFINED IN
RULE 144A UNDER THE SECURITIES ACT) IN COMPLIANCE WITH RULE 144A, (C) PURSUANT TO THE EXEMPTION
FROM REGISTRATION PROVIDED BY RULE 144 UNDER THE SECURITIES ACT (IF AVAILABLE) OR (D) PURSUANT TO A
REGISTRATION STATEMENT WHICH HAS BECOME EFFECTIVE UNDER THE SECURITIES ACT (AND WHICH CONTINUES TO
BE EFFECTIVE AT THE TIME OF SUCH TRANSFER); (2) PRIOR TO SUCH TRANSFER (OTHER THAN A TRANSFER
PURSUANT TO CLAUSE 1(D) ABOVE), IT WILL FURNISH TO MELLON INVESTOR SERVICES LLC, AS TRANSFER AGENT
(OR A

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SUCCESSOR TRANSFER AGENT, AS APPLICABLE), SUCH CERTIFICATIONS, LEGAL OPINIONS OR OTHER
INFORMATION AS SUCH TRANSFER AGENT MAY REASONABLY REQUIRE 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 AND (3) IT WILL DELIVER TO EACH PERSON TO WHOM THE COMMON STOCK
EVIDENCED HEREBY IS TRANSFERRED (OTHER THAN A TRANSFER PURSUANT TO CLAUSE 1(D) ABOVE) A NOTICE
SUBSTANTIALLY TO THE EFFECT OF THIS LEGEND. THIS LEGEND WILL BE REMOVED UPON THE EARLIER OF THE
TRANSFER OF THE COMMON STOCK EVIDENCED HEREBY PURSUANT TO CLAUSE 1(D) ABOVE OR UPON ANY TRANSFER
OF THE COMMON STOCK EVIDENCED HEREBY AFTER THE EXPIRATION OF THE HOLDING PERIOD APPLICABLE TO SALES
OF THE SECURITY EVIDENCED HEREBY UNDER RULE 144(k) UNDER THE SECURITIES ACT (OR ANY SUCCESSOR
PROVISION).

     Any such Common Stock as to which such restrictions on transfer shall have expired in
accordance with their terms or as to which the conditions for removal of the foregoing legend set
forth therein have been satisfied may, upon surrender of the certificates representing such shares
of Common Stock for exchange in accordance with the procedures of the transfer agent for the Common
Stock, be exchanged for a new certificate or certificates for a like number of shares of Common
Stock, which shall not bear the restrictive legend required by this
Section 2.06(f).

     (g) Any Note or Common Stock issued upon the conversion of a Note that, prior to the
expiration of the holding period applicable to sales thereof under Rule 144(k), is purchased or
owned by the Company or any Affiliate thereof may not be resold by the Company or such Affiliate
unless registered under the Securities Act or resold pursuant to an exemption from the registration
requirements of the Securities Act in a transaction which results in such Notes or Common Stock, as
the case may be, no longer being “Restricted Securities” (as defined under Rule 144); provided,
however, that this Section shall not apply to any Notes or Common Stock that have previously been
sold pursuant to an effective Registration Statement or under Rule 144.

     Section 2.07. Mutilated, Destroyed, Lost or Stolen Notes. In case any Note shall become
mutilated or be destroyed, lost or stolen, the Company in its discretion may execute, and upon
delivery by the Company of a Company Order the Trustee or an authenticating agent appointed by the
Trustee shall authenticate and deliver, a new Note of like tenor (including the same date of
issuance) and principal amount, bearing a number not contemporaneously outstanding, in exchange and
substitution for the mutilated Note, or in lieu of and in substitution for the Note so destroyed,
lost or stolen. In every case the applicant for a

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substituted Note shall furnish to the Company, to the Trustee and, if applicable, to such
authenticating agent such security or indemnity as may be required by them to save each of them
harmless from any loss, liability, cost or expense caused by or connected with such substitution,
and, in every case of destruction, loss or theft, the applicant shall also furnish to the Company,
to the Trustee and, if applicable, to such authenticating agent evidence to their satisfaction of
the destruction, loss or theft of such Note and of the ownership thereof.

     The Trustee or such authenticating agent may authenticate any such substituted Note and
deliver the same upon the receipt of such security or indemnity as the Trustee, the Company and,
if applicable, such authenticating agent may require. Upon the issuance of any substituted Note,
the Company or the Trustee may require the payment by the holder of a sum sufficient to cover any
tax, assessment or other governmental charge that may be imposed in relation thereto and any other
expenses connected therewith.

     In case any Note which has matured or is about to mature or has been tendered for repurchase
upon a Fundamental Change or for conversion into Common Stock shall become mutilated or be
destroyed, lost or stolen, the Company may, in its sole discretion, instead of issuing a substitute
Note in exchange and substitution for the mutilated Note, or in lieu of a destroyed, lost or stolen
Note, pay or authorize the payment of or convert or authorize the conversion of the same (without
surrender thereof except in the case of a mutilated Note), as the case may be, if the applicant for
such payment or conversion shall furnish to the Company, to the Trustee and, if applicable, to any
Paying Agent or Conversion Agent, such security or indemnity as may be required by them to save
each of them harmless for any loss, liability, cost or expense caused by or connected with such
payment or conversion in lieu of substitution, and, in every case of destruction, loss or theft,
evidence satisfactory to the Company, the Trustee and, if applicable, any Paying Agent or
Conversion Agent of the destruction, loss or theft of such Note and of the ownership thereof.

     Every substitute Note issued pursuant to the provisions of this Section 2.07 by virtue of the
fact that any Note is destroyed, lost or stolen shall constitute an additional contractual
obligation of the Company, whether or not the destroyed, lost or stolen Note shall be found at any
time, and shall be entitled to all the benefits of (but shall be subject to all the limitations set
forth in) this Indenture equally and proportionately with any and all other Notes duly issued
hereunder. To the extent permitted by law, all Notes shall be held and owned upon the express
condition that the foregoing provisions are exclusive with respect to the replacement or payment or
conversion or repurchase of mutilated, destroyed, lost or stolen Notes and shall preclude any and
all other rights or remedies notwithstanding any law or statute existing or hereafter enacted to
the contrary with respect to the replacement or payment or conversion of negotiable instruments or
other securities without their surrender.

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     Section 2.08. Temporary Notes. Pending the preparation of Notes in certificated form, the
Company may execute and the Trustee or an authenticating agent appointed by the Trustee shall, upon
delivery by the Company of a Company Order, authenticate and deliver temporary Notes (printed or
lithographed). Temporary Notes shall be issuable in any authorized denomination, and substantially
in the form of the Notes in certificated form but with such omissions, insertions and variations as
may be appropriate for temporary Notes, all as may be determined by the Company. Every such
temporary Note shall be executed by the Company and authenticated by the Trustee or such
authenticating agent upon the same conditions and in substantially the same manner, and with the
same effect, as the Notes in certificated form. Without unreasonable delay the Company will execute
and deliver to the Trustee or such authenticating agent Notes in certificated form (other than in
the case of Notes in global form) and thereupon any or all temporary Notes (other than any Global
Note) may be surrendered in exchange therefor, at each office or agency maintained by the Company
pursuant to Section 3.02 and the Trustee or such authenticating agent shall authenticate and
deliver in exchange for such temporary Notes an equal aggregate principal amount of Notes in
certificated form. Such exchange shall be made by the Company at its own expense and without any
charge therefor. Until so exchanged, the temporary Notes shall in all respects be entitled to the
same benefits and subject to the same limitations under this Indenture as Notes in certificated
form authenticated and delivered hereunder.

     Section 2.09. Cancellation of Notes Paid, etc.. All Notes surrendered for the purpose of
payment, repurchase, conversion, exchange or registration of transfer, shall, if surrendered to the
Company or any Paying Agent or any Note Registrar or any Conversion Agent, be surrendered to the
Trustee and promptly canceled by it, or, if surrendered to the Trustee, shall be promptly canceled
by it, and no Notes shall be issued in lieu thereof except as expressly permitted by any of the
provisions of this Indenture. The Trustee shall destroy canceled Notes in accordance with its
customary procedures and, after such destruction, shall deliver a certificate of such destruction
to the Company upon delivery by the Company of a Company Order. If the Company shall acquire any of
the Notes, such acquisition shall not operate as satisfaction of the Indebtedness represented by
such Notes unless and until the same are delivered to the Trustee for cancellation.

     Section 2.10. CUSIP Numbers. The Company in issuing the Notes may use “CUSIP” numbers (if
then generally in use), and, if so, the Trustee shall use “CUSIP” numbers in notices to holders as
a convenience to holders of the Notes; provided, that any such notice may state that no
representation is made as to the correctness of such numbers either as printed on the Notes or in
such notice and that reliance may be placed only on the other identification numbers printed on the
Notes. The Company will promptly notify the Trustee in writing of any change in the “CUSIP”
numbers.

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     Section 2.11. Additional Notes, Repurchases. The Company may, without the consent of the
Noteholders and notwithstanding Section 2.01, reopen the Notes and issue additional Notes hereunder
with the same terms and with the same CUSIP number as the Notes initially issued hereunder in an
unlimited aggregate principal amount, which will form the same series with the Notes initially
issued hereunder, provided that no such additional Notes may be issued unless fungible with the
Notes initially issued hereunder for U.S. federal income tax purposes. The Company may also from
time to time repurchase the Notes in tender offers, open market purchases or negotiated
transactions without prior notice to Noteholders.

ARTICLE 3

Particular Covenants of the Company.

     Section 3.01. Payment of Principal, Interest, Additional Interest, Extension Fee and
Conversion Obligation. The Company covenants and agrees that it will cause to be paid the principal
of, accrued and unpaid interest on, Additional Interest, if any, and Extension Fee, if any, on each
of the Notes and if applicable, payment of the cash and shares of Common Stock (including any
Additional Shares) payable upon conversion of the Notes, at the places, at the respective times and
in the manner provided herein and in the Notes. Each installment of accrued and unpaid interest and
Additional Interest, if any, on the Notes due on any Interest Payment Date and the Extension Fees
and the Additional Extension Fees, if any, due on the Filing Default Payment Date may be paid by
mailing checks for the amount payable to or upon the written order of the Noteholders entitled
thereto as they shall appear on the registry books of the Company, provided that, with respect to
any Noteholder with an aggregate principal amount in excess of $1,000,000, at the application of
such holder in writing to the Note Registrar not later than the relevant record date or Filing
Default Date, as applicable, accrued and unpaid interest and Additional Interest, if any, or the
Extension Fees or Additional Extension Fees, if any, on such holder’s Notes shall be paid by wire
transfer in immediately available funds to such holder’s account in the United States supplied by
such holder from time to time to the Trustee and Paying Agent (if different from Trustee); provided
further that payment of accrued and unpaid interest and Additional Interest, if any, and Extension Fees, if any, made to the Depositary shall be paid by wire transfer in immediately
available funds in accordance with such wire transfer instructions and other procedures provided by
the Depositary from time to time.

     Section 3.02. Maintenance of Office or Agency. The Company will maintain in the Borough of
Manhattan, The City of New York, an office or agency where the Notes may be surrendered for
registration of transfer or exchange or for presentation for payment
or repurchase (“Paying Agent”)
or for

25

 

conversion (“Conversion Agent”) and where notices and demands to or upon the Company in
respect of the Notes and this Indenture may be served. The Company may change the Paying Agent
without prior notice to the Noteholders but with notice to the initial Paying Agent and the Company
may act as Paying Agent. The Company will give prompt written notice to the Trustee of the
location, and any change in the location, of such office or agency not designated or appointed by
the Trustee. If at any time the Company shall fail to maintain any such required office or agency
or shall fail to furnish the Trustee with the address thereof, such presentations, surrenders,
notices and demands may be made or served at the Corporate Trust Office or the office or agency of
the Trustee in the Borough of Manhattan, The City of New York.

     The Company may also from time to time designate one or more other offices or agencies where
the Notes may be presented or surrendered for any or all such purposes and may from time to time
rescind such designations; provided that no such designation or rescission shall in any manner
relieve the Company of its obligation to maintain an office or agency in the Borough of Manhattan,
The City of New York, for such purposes. The Company will give prompt written notice to the Trustee
of any such designation or rescission and of any change in the location of any such other office or
agency. The terms Paying Agent and Conversion Agent include any such additional or other offices or
agencies, as applicable.

     The Company hereby initially designates the Trustee as the Paying Agent, Note Registrar,
Custodian and Conversion Agent and the Corporate Trust Office and the office or agency of the
Trustee in the Borough of Manhattan shall be considered as the initial office or agency of the
Company for each of the aforesaid purposes.

     So long as the Trustee is the Note Registrar, the Trustee agrees to mail, or cause to be
mailed, the notices set forth in Section 6.10(a) and the third paragraph of Section 6.11.

     Section 3.03. Appointments to Fill Vacancies in Trustee’s Office. The Company, whenever
necessary to avoid or fill a vacancy in the office of Trustee, will appoint, in the manner provided
in Section 6.10, a Trustee, so that there shall at all times be a Trustee hereunder.

     Section 3.04. Provisions as to Paying Agent.

     (a) If the Company shall appoint a Paying Agent other than the Trustee or if the
Trustee shall appoint such a Paying Agent, the Company will cause such Paying Agent to execute and
deliver to the Trustee an instrument in which such agent shall agree with the Trustee, subject to
the provisions of this Section 3.04,

26

 

     (i) that it will hold all sums held by it as such agent for the payment of the
principal of, and accrued and unpaid interest (including Additional Interest, if any) and
the Extension Fees and Additional Extension Fees, if any, on, the Notes (whether such sums
have been paid to it by the Company or by any other obligor on the Notes) in trust for the
benefit of the holders of the Notes;

     (ii) that it will give the Trustee notice of any failure by the Company (or by
any other obligor on the Notes) to make any payment of the principal of, and accrued and
unpaid interest (including Additional Interest, if any) and Extension Fees and Additional
Extension Fees, if any, on, the Notes when the same shall be due and payable; and

     (iii) that at any time during the continuance of an Event of Default, upon
request of the Trustee, it will forthwith pay to the Trustee all sums so held in trust.

     The Company shall, on or before each due date of the principal of, or accrued and unpaid
interest (including Additional Interest, if any) and Extension Fees and Additional Extension Fees,
if any, on, the Notes, deposit with the Paying Agent a sum sufficient to pay such principal or
accrued and unpaid interest (including Additional Interest, if any) or Extension Fees or Additional
Extension Fees, if any, and (unless such Paying Agent is the Trustee) the Company will promptly
notify the Trustee in writing of any failure to take such action, provided that if such deposit is
made on the due date, such deposit must be received by the Paying Agent by 11:00 a.m., New York
City time, on such date.

     (b) If the Company shall act as its own Paying Agent, it will, on or
before each due date of the principal of, and accrued and unpaid interest
(including Additional Interest, if any) and Extension Fees and Additional
Extension Fees, if any, on, the Notes, set aside, segregate and hold in trust for the
benefit of the holders of the Notes a sum sufficient to pay such principal, accrued
and unpaid interest (including Additional Interest, if any) and Extension Fees and
Additional Extension Fees, if any, so becoming due and will notify the Trustee in
writing of any failure to take such action and of any failure by the Company (or
any other obligor under the Notes) to make any such payment on the Notes, when
the same shall become due and payable.

     (c) Anything in this Section 3.04 to the contrary notwithstanding, the
Company may, at any time, for the purpose of obtaining a satisfaction and
discharge of this Indenture, or for any other reason, pay or cause to be paid to the
Trustee all sums held in trust by the Company or any Paying Agent hereunder as
required by this Section 3.04, such sums to be held by the Trustee upon the trusts
herein contained and upon such payment by the Company or any Paying Agent to

27

 

the Trustee, the Company or such Paying Agent shall be released from all further liability with
respect to such sums.

     (d) Anything in this Section 3.04 to the contrary notwithstanding, the agreement to hold
sums in trust as provided in this Section 3.04 is subject to Section 11.03 and Section 11.04.

     Section 3.05. Existence. Subject to Article 10, the Company will do or cause to be done all
things necessary to preserve and keep in full force and effect its corporate existence.

     Section 3.06. Rule 144A Information Requirement. Within the period prior to the expiration of
the holding period applicable to sales under Rule 144(k) of Notes or any Common Stock issued upon
conversion thereof, the Company covenants and agrees that it shall, during any period in which it
is not subject to Section 13 or 15(d) under the Exchange Act, make available to any Noteholder or
beneficial holder of Notes or any holder or beneficial holder of Common Stock issued upon
conversion thereof which continue to be Restricted Securities in connection with any sale thereof
and any prospective purchaser of Notes or such Common Stock designated by such holder, the
information required pursuant to Rule 144A(d)(4) under the Securities Act upon the request of any
such holder and it will take such further action as any such holder may reasonably request, all to
the extent required from time to time to enable such holder to sell its Notes or Common Stock
without registration under the Securities Act within the limitation of the exemption provided by
Rule 144A. Upon the request of any such holder, the Company will deliver to such holder a written
statement as to whether it has complied with such requirements.

     Section 3.07. Stay, Extension and Usury Laws. The Company covenants (to the extent that it may
lawfully do so) that it shall not at any time insist upon, plead, or in any manner whatsoever claim
or take the benefit or advantage of, any stay, extension or usury law or other law which would
prohibit or forgive the Company from paying all or any portion of the principal of, or interest
(including Additional Interest, if any) or Extension Fees or Additional Extension Fees, if any, on,
the Notes as contemplated herein, wherever enacted, now or at any time hereafter in force, or which
may affect the covenants or the performance of this Indenture; and the Company (to the extent it
may lawfully do so) hereby expressly waives all benefit or advantage of any such law, and covenants
that it will not, by resort to any such law, hinder, delay or impede the execution of any power
herein granted to the Trustee, but will suffer and permit the execution of every such power as
though no such law had been enacted.

     Section 3.08. Compliance Certificate; Statements as to Defaults. The Company shall deliver to
the Trustee within 120 calendar days after the end of each fiscal year of the Company (beginning
with the fiscal year ending on

28

 

December 31, 2006) an Officers’ Certificate stating whether or not the signer thereof has knowledge
of any failure by the Company to comply with all conditions and covenants then required to be
performed under this Indenture and, if so, specifying each such failure and the nature thereof.

     In addition, the Company shall deliver to the Trustee, as soon as practicable and in any event
within 30 days after the Company becomes aware of the occurrence of any Event of Default or
Default, an Officers’ Certificate setting forth the details of such Event of Default or Default,
its status and the action which the Company proposes to take with respect thereto.

     Section 3.09. Additional Interest Notice. In the event that the Company is required to pay
Additional Interest to the Noteholders pursuant to the Registration Rights Agreement, the Company
will provide written notice (“Additional Interest Notice”) to the Trustee of its obligation to pay
Additional Interest no later than fifteen (15) days prior to the proposed payment date for the
Additional Interest, and the Additional Interest Notice shall set forth the amount of Additional
Interest to be paid by the Company on such payment date. The Trustee shall not at any time be under
any duty or responsibility to any Noteholders to determine the Additional Interest, or with respect
to the nature, extent or calculation of the amount of Additional Interest when made, or with
respect to the method employed in such calculation of the Additional Interest.

     Section 3.10. Further Instruments and Acts. Upon request of the Trustee, the Company will
execute and deliver such further instruments and do such further acts as may be reasonably
necessary or proper to carry out more effectively the purposes of this Indenture.

ARTICLE 4

Lists of Noteholders and Reports by the Company and the Trustee

     Section 4.01. Lists of Noteholders. The Company covenants and agrees that it will
furnish or cause to be furnished to the Trustee, semi-annually, not more than fifteen (15) days
after each June 1 and December 1 in each year beginning with June 1 and December 1, 2007, and at
such other times as the Trustee may request in writing, within thirty (30) days after receipt by
the Company of any such request (or such lesser time as the Trustee may reasonably request in order
to enable it to timely provide any notice to be provided by it hereunder), a list in such form as
the Trustee may reasonably require of the names and addresses of the Noteholders as of a date not
more than fifteen (15) days (or such other date as the Trustee may reasonably request in order to
so provide any such notices) prior to the time such information is furnished, except that no such
list need be furnished so long as the Trustee is acting as Note Registrar.

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     Section 4.02. Preservation and Disclosure of Lists.

     (a) The Trustee shall preserve, in as current a form as is reasonably
practicable, all information as to the names and addresses of the Noteholders
contained in the most recent list furnished to it as provided in Section 4.01 or
maintained by the Trustee in its capacity as Note Registrar, if so acting. The
Trustee may destroy any list furnished to it as provided in Section 4.01 upon
receipt of a new list so furnished.

     (b) The rights of Noteholders to communicate with other Noteholders
with respect to their rights under this Indenture or under the Notes and the
corresponding rights and duties of the Trustee, shall be as provided by the Trust
Indenture Act.

     (c) Every Noteholder, by receiving and holding the same, agrees with
the Company and the Trustee that neither the Company nor the Trustee nor any
agent of either of them shall be held accountable by reason of any disclosure of
information as to names and addresses of Noteholders made pursuant to the Trust
Indenture Act.

     Section 4.03. Reports by Trustee.

     (a) Within sixty (60) days after May 1 of each year commencing with
May 1, 2007, the Trustee shall transmit to Noteholders such reports dated as of
May 1 of each year in which such reports are made concerning the Trustee and its
actions under this Indenture as may be required pursuant to the Trust Indenture
Act at the times and in the manner provided pursuant thereto.

     (b) A copy of such report shall, at the time of such transmission to
Noteholders, be filed by the Trustee with each stock exchange and automated
quotation system upon which the Notes are listed, if any, and with the Company.
The Company will notify the Trustee in writing within a reasonable time when the
Notes are listed on any stock exchange or automated quotation system and when
any such listing is discontinued.

     Section 4.04. Reports by Company.

     (a) The Company shall file with the Trustee and the Commission, and transmit to
Noteholders, such information, documents and other reports and such summaries thereof, as may be
required pursuant to the Trust Indenture Act at the times and in the manner provided pursuant to
such Act; provided that any such information, documents or reports required to be filed with the
Commission pursuant to Section 13 or 15(d) of the Exchange Act shall be filed with the Trustee
within 15 days after the same is filed with the Commission. The Company shall be deemed to have
complied with the previous sentence to the

30

 

extent that the Company shall have filed or furnished such information, documents or reports
to the Commission via EDGAR (or any successor electronic delivery procedure).

     (b) Delivery of such reports, information and documents to the Trustee is for
informational purposes only, and the Trustee’s receipt of such shall not constitute constructive
notice of any information contained therein or determinable from information contained therein,
including the Company’s compliance with any of its covenants hereunder (as to which the Trustee is
entitled to conclusively rely exclusively on an Officers’ Certificate).

ARTICLE 5

Defaults and Remedies

     Section 5.01. Events of Default. The following events shall be events of default
(each, an “Event of Default”) with respect to the Notes:

     (a) default in any payment of interest (including Additional Interest, if
any), and any payment of an Extension Fee or an Additional Extension Fee, if
any, on any Note when due and payable and the default continues for a period of
30 days;

     (b) default in the payment of principal of any Note when due and
payable on the Maturity Date, upon required repurchase or upon declaration;

     (c) failure by the Company to comply with its obligation to convert the
Notes into cash or a combination of cash and Common Stock, as applicable, upon
exercise of a holder’s conversion right;

     (d) failure by the Company to comply with its obligations under Section
10.01;

     (e) failure by the Company to issue a Fundamental Change Repurchase
Company Notice in accordance with Section 14.01(b) when due or to provide
notice of a Fundamental Change pursuant to Section 13.01(d).

     (f) failure by the Company for 60 days to comply with any of its other
agreements (other than a covenant or warranty or default in whose performance or
whose breach is elsewhere in this Section specifically provided for) contained in
the Notes or the Indenture after written notice of such default from the Trustee at
the written direction of the holders of at least 25% in principal amount of the
Notes then outstanding has been received by the Company;

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     (g) default by the Company or any Subsidiary of the Company in the payment of the
principal or interest on any mortgage, agreement or other instrument under which there may be
outstanding, or by which there may be secured or evidenced, any debt for money borrowed in excess
of $50 million in the aggregate of the Company and/or any such Subsidiary (other than debt for
borrowed money secured only by the real property to which the debt relates and which is
non-recourse to the Company or its Subsidiaries), whether such debt now exists or shall hereafter
be created, which default results in such debt becoming or being declared due and payable, and
such acceleration shall not have been rescinded or annulled within 30 days after written notice of
such acceleration has been received by the Company or such Subsidiary;

     (h) the Company shall commence a voluntary case or other proceeding seeking liquidation,
reorganization or other relief with respect to the Company or any of its Significant Subsidiaries
or its debts under any bankruptcy, insolvency or other similar law now or hereafter in effect or
seeking the appointment of a trustee, receiver, liquidator, custodian or other similar official of
the Company or any of its Significant Subsidiaries or any substantial part of the property of the
Company or any of its Significant Subsidiaries, or shall consent to any such relief or to the
appointment of or taking possession by any such official in an involuntary case or other
proceeding commenced against it, or shall make a general assignment for the benefit of creditors;
or

     (i) an involuntary case or other proceeding shall be commenced against the Company or any
of its Significant Subsidiaries seeking liquidation, reorganization or other relief with respect to
the Company or its debts under any bankruptcy, insolvency or other similar law now or hereafter in
effect or seeking the appointment of a trustee, receiver, liquidator, custodian or other similar
official of the Company or any of its Significant Subsidiaries or any substantial part of the
property of the Company and its Significant Subsidiaries, taken as a whole, and such involuntary
case or other proceeding shall remain undismissed “ and unstayed for a period of ninety (90)
consecutive days.

     In case one or more Events of Default shall have occurred and be continuing (whatever the
reason for such Event of Default and whether it shall be voluntary or involuntary or be effected
by operation of law or pursuant to any judgment, decree or order of any court or any order, rule
or regulation of any administrative or governmental body), then, and in each and every such case
(other than an Event of Default specified in Section 5.01(h) or Section 5.01(i) with respect to
the Company), unless the principal of all of the Notes shall have already become due and payable,
the Trustee may and, at the written request of the holders of at least 25% in aggregate principal
amount of the Notes then outstanding determined in accordance with Section 7.04, by notice in
writing to the Company (and to the Trustee if given by Noteholders), the Trustee shall declare
100% of the principal of, and accrued and unpaid interest (including

32

 

Additional Interest, if any) and Extension Fees and Additional Extension Fees, if any, on,
all the Notes to be due and payable immediately, and upon any such declaration the same shall
become and shall be immediately due and payable, anything in this Indenture or in the Notes
contained to the contrary notwithstanding (except in regards to a Filing Default). If an Event of
Default specified in Section 5.01(h) or Section 5.01(i) occurs and is continuing with respect to
the Company, the principal of all the Notes and accrued and unpaid interest (including Additional
Interest, if any) and Extension Fees and Additional Extension Fees, if any, shall be immediately
due and payable. This provision, however, is subject to the conditions that if, at any time after
the principal of the Notes shall have been so declared due and payable, and before any judgment or
decree for the payment of the monies due shall have been obtained or entered as hereinafter
provided, the Company shall pay or shall deposit with the Trustee a sum sufficient to pay
installments of accrued and unpaid interest (including Additional Interest, if any) and Extension
Fees and Additional Extension Fees, if any, upon all Notes and the principal of any and all Notes
that shall have become due otherwise than by acceleration and amounts due to the Trustee pursuant
to Section 6.06, and if (1) rescission and annulment of the declaration of acceleration would not
conflict with any judgment or decree of a court of competent jurisdiction and (2) any and all
Events of Defaults under this Indenture, other than the nonpayment of principal of and accrued and
unpaid interest (including Additional Interest, if any) and Extension Fees and Additional Extension
Fees, if any, on Notes that shall have become due solely by such acceleration, shall have been
cured or waived pursuant to Section 5.07, then and in every such case the holders of a majority in
aggregate principal amount of the Notes then outstanding, by written notice to the Company and to
the Trustee, may waive all Defaults or Events of Default with respect to the Notes and rescind and
annul such declaration and its consequences and such Default shall cease to exist, and any Event of
Default arising therefrom shall be deemed to have been cured for every purpose of this Indenture;
but no such waiver or rescission and annulment shall extend to or shall affect any subsequent
Default or Event of Default, or shall impair any right consequent thereon. The Company shall notify
the Responsible Officer of the Trustee in writing, promptly upon becoming aware thereof, of any
Event of Default by delivering to the Trustee a statement specifying such Event of Default and any
action the Company has taken, is taking or proposes to take with respect thereto.

     In case the Trustee shall have proceeded to enforce any right under this Indenture and such
proceedings shall have been discontinued or abandoned because of such waiver or rescission and
annulment or for any other reason or shall have been determined adversely to the Trustee, then and
in every such case the Company, the Noteholders, and the Trustee shall, subject to any
determination in such proceeding, be restored respectively to their several positions and rights

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hereunder, and all rights, remedies and powers of the Company, the Noteholders, and the Trustee
shall continue as though no such proceeding had been instituted.

     Notwithstanding the foregoing, at the election of the Company, the sole remedy for an Event of
Default specified in Section 5.01(f) relating to the failure by the Company to comply with Section
4.04(a) (the “Filing Default”), shall for the first 90 days after the occurrence of such Filing
Default (the “First Extension Period”) consist exclusively of the right to receive an extension fee
on the Notes in an amount equal to 0.25% of the principal amount of the Notes (the “Extension Fee”)
and will for the next 30 days after the expiration of the First Extension Period consist
exclusively of the right to receive an additional extension fee on the Notes in an amount equal to
0.25% of the principal amount of the Notes (the “Additional Extension Fee”). If the Company elects
to pay the Extension Fee or the Additional Extension Fee, such fee shall be payable in respect of
all Notes outstanding on the date on which the related Filing Default first occurs, which will be
the 60th day after notice to the Company of its failure to so comply (the “Filing Default Date”).
On or after such 90th day, or if the Company elects to pay the Additional Extension Fee, the 120th
day (if the Filing Default has not been cured or waived prior to such 90th or 120th day, as
applicable) after the Filing Default, the Trustee or the holders of not less than 25% in principal
amount of the Notes may declare the principal of and accrued and unpaid interest (including
Additional Interest) on all such Notes to be due and payable immediately. This provision shall not
affect the rights of Noteholders in the event of the occurrence of any other Event of Default. In
order to elect to pay the Extension Fee and, if applicable, the Additional Extension Fee as the
sole remedy for a Filing Default during the first 90 or 120 days, as applicable, after the
occurrence of such Event of Default, the Company shall notify, in the manner provided for in
Section 15.03, the Noteholders and the Trustee of such election at any time on or before the Close
of Business on the Filing Default Date. If the Extension Fee and, if applicable, the Additional
Extension Fee is payable under this Section 5.01, on the date the Company elects to pay the
Extension Fee or the Additional Extension Fee, the Company shall deliver to the Trustee a
certificate to that effect stating (i) the amount of Extension Fee and, if applicable, the
Additional Extension Fee that is payable, and (ii) the Filing Default Date. The Extension Fee and
the Additional Extension Fee shall be paid to the Holders entitled thereto within 15 days of the
date on which the Company elected to pay such Extension Fee or Additional Extension Fee under this
Section 5.01 (the “Filing Default Payment Date”). Unless and until a Responsible Officer of the
Trustee receives at the Corporate Trust Office such a certificate, the Trustee may assume without
inquiry that no Extension Fee or Additional Extension Fee is payable. If the Extension Fee and, if
applicable, the Additional Extension Fee has been paid by the Company directly to the persons
entitled thereto, the Company shall deliver to the Trustee a certificate setting forth the
particulars of such payment.

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     Section 5.02. Payments of Notes on Default; Suit Therefor. In the event that the Trustee has,
either upon its own initiative or upon the request of the holders of not less than 25% in aggregate
principal amount of the Notes then outstanding, declared the principal of, and accrued and unpaid
interest (including Additional Interest, if any) and Extension Fees and Additional Extension Fees,
if any, on, the Notes, to be due and payable immediately in accordance with Section 5.01, and the
Company shall have failed forthwith to pay such amounts, the Trustee, in its own name and as
trustee of an express trust, after being furnished suitable indemnity pursuant to Section 6.01,
shall be entitled and empowered to institute any actions or proceedings at law or in equity for the
collection of the sums so due and unpaid (including such further amounts as shall be sufficient to
cover the reasonable costs and expenses of collection, including reasonable compensation to the
Trustee, its agents, attorneys and counsel, and any expenses or liabilities incurred by the Trustee
hereunder other than through its negligence or bad faith), and may prosecute any such action or
proceeding to judgment or final degree, and may enforce any such judgment or final decree against
the Company or any other obligor on the Notes and collect in the manner provided by law out of the
property of the Company or any other obligor on the Notes wherever situated the monies adjudged or
decreed to be payable.

     In case there shall be pending proceedings for the bankruptcy or for the reorganization of the
Company or any Significant Subsidiary, as provided in Section 5.01(h) or Section 5.01(i), the
Trustee, irrespective of whether the principal of the Notes shall then be due and payable as
therein expressed or by declaration or otherwise and irrespective of whether the Trustee shall have
made any demand pursuant to the provisions of this Section 5.02, shall be entitled and empowered,
by intervention in such proceedings or otherwise, to file and prove a claim or claims for the whole
amount of principal and accrued and unpaid interest (including Additional Interest, if any) and
Extension Fees and Additional Extension Fees, if any, in respect of the Notes, and, in case of any
judicial proceedings, to file such proofs of claim and other papers or documents and to take such
other actions as it may deem 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 of the Noteholders allowed in such judicial proceedings
relative to the Company or any other obligor on the Notes, its or their creditors, or its or their
property, and to collect and receive any monies or other property payable or deliverable on any
such claims, and to distribute the same after the deduction of any amounts due the Trustee under
Section 6.06; and any receiver, assignee or trustee in bankruptcy or reorganization, liquidator,
custodian or similar official is hereby authorized by each of the Noteholders to make such payments
to the Trustee, as administrative expenses, and, in the event that the Trustee shall consent to the
making of such payments directly to the Noteholders, to pay to the Trustee any amount due it for
reasonable compensation, expenses, advances and disbursements, including

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agents and counsel fees, and including any other amounts due to the Trustee under Section 6.06
hereof, incurred by it up to the date of such distribution. To the extent that such payment of
reasonable compensation, expenses, advances and disbursements out of the estate in any such
proceedings shall be denied for any reason, payment of the same shall be secured by a lien on, and
shall be paid out of, any and all distributions, dividends, monies, securities and other property
which the holders of the Notes may be entitled to receive in such proceedings, whether in
liquidation or under any plan of reorganization or arrangement or otherwise.

     Nothing herein contained shall be deemed to authorize the Trustee to authorize or consent to
or accept or adopt on behalf of any Noteholder any plan of reorganization, arrangement, adjustment
or composition affecting the Noteholder or the rights of any Noteholder thereof, or to authorize
the Trustee to vote in respect of the claim of any Noteholder in any such proceeding.

     All rights of action and of asserting claims under this Indenture, or under any of the Notes,
may be enforced by the Trustee without the possession of any of the Notes, or the production
thereof at any trial or other proceeding relative thereto, and any such suit or proceeding
instituted by the Trustee shall be brought in its own name as trustee of an express trust, and any
recovery of judgment shall, after provision for the payment of the reasonable compensation,
expenses, disbursements and advances of the Trustee, its agents and counsel, be for the ratable
benefit of the holders of the Notes.

     In any proceedings brought by the Trustee (and in any proceedings involving the interpretation
of any provision of this Indenture to which the Trustee shall be a party) the Trustee shall be held
to represent all the holders of the Notes, and it shall not be necessary to make any holders of the
Notes parties to any such proceedings.

     Section 5.03. Application of Monies Collected by Trustee. Any monies collected by the Trustee
pursuant to this Article 5 with respect to the Notes shall be applied in the order following, at
the date or dates fixed by the Trustee for the distribution of such monies, upon presentation of
the several Notes, and stamping thereon the payment, if only partially paid, and upon surrender
thereof, if fully paid:

     First, to the payment of all amounts due the Trustee under Section 6.06;

     Second, in case the principal of the outstanding Notes shall not have become due and be
unpaid, to the payment of interest (including Additional Interest, if any) and Extension Fees and
Additional Extension Fees, if any, on the Notes in default in the order of the maturity of the
installments of such interest;

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     Third, in case the principal of the outstanding Notes shall have become due, by
declaration or otherwise, and be unpaid, to the payment of the whole amount (including, if
applicable, payments in respect of the Conversion Obligation and Additional Shares) then owing and
unpaid upon the Notes for principal and interest (including Additional Interest, if any), and
Extension Fees and Additional Extension Fees, if any, and in case such monies shall be insufficient
to pay in full the whole amounts so due and unpaid upon the Notes, then to the payment of such
principal and interest (including Additional Interest, if any) and
Extension Fees and Additional
Extension Fees, if any, without preference or priority of principal over interest or over extension
fees, or of interest over principal or extension fees or of any installment of interest over any
other installment of interest, or any extension fee over any other extension fee or of any Note
over any other Note, ratably to the aggregate of such principal and accrued and unpaid interest
(including Additional Interest, if any) and Extension Fees and Additional Extension Fees, if any;
and

     Fourth, to the payment of the remainder, if any, to the Company or any other Person lawfully
entitled thereto.

     Section 5.04. Proceedings by Noteholders. No holder of any Note shall have any right by virtue
of or by availing of any provision of this Indenture to institute any suit, action or proceeding in
equity or at law upon or under or with respect to this Indenture, or for the appointment of a
receiver, trustee, liquidator, custodian or other similar official, or for any other remedy
hereunder, unless such holder previously shall have given to the Trustee written notice of an Event
of Default and of the continuance thereof, as hereinbefore provided, and unless also the holders of
not less than 25% in aggregate principal amount of the Notes then outstanding shall have made
written request upon the Trustee to institute such action, suit or proceeding in its own name as
Trustee hereunder and shall have offered to the Trustee such security or indemnity reasonably
satisfactory to it against any loss, liability or expense to be incurred therein or thereby, and
the Trustee for sixty (60) days after its receipt of such notice, request and offer of indemnity,
shall have neglected or refused to institute any such action, suit or proceeding and no direction
that, in the opinion of the Trustee, is inconsistent with such written request shall have been
given to the Trustee by the holders of a majority in principal amount of the Notes outstanding
pursuant to Section 5.07; it being understood and intended, and being expressly covenanted by the
taker and holder of every Note with every other taker and holder and the Trustee, that no one or
more Noteholders shall have any right in any manner whatever by virtue of or by availing of any
provision of this Indenture to affect, disturb or prejudice the rights of any other Noteholder, or
to obtain or seek to obtain priority over or preference to any other such holder, or to enforce any
right under this Indenture, except in the manner herein provided and for the equal, ratable and
common benefit of all Noteholders (except as otherwise provided herein). For the protection and
enforcement of this Section 5.04, each and every Noteholder and

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the Trustee shall be entitled to such relief as can be given either at law or in equity.

     Notwithstanding any other provision of this Indenture and any provision of any Note, the right
of any Noteholder to receive payment of the principal of, and accrued and unpaid interest
(including Additional Interest, if any) and Extension Fees and Additional Extension Fees, if any,
on, such Note, on or after the respective due dates expressed in such Note, or to institute suit
for the enforcement of any such payment on or after such respective dates against the Company shall
not be impaired or affected without the consent of such Noteholder.

     Anything in this Indenture or the Notes to the contrary notwithstanding, the holder of any
Note, without the consent of either the Trustee or the holder of any other Note, in his own behalf
and for his own benefit, may enforce, and may institute and maintain any proceeding suitable to
enforce, his rights of conversion as provided herein.

     Section 5.05. Proceedings by Trustee. In case of an Event of Default the Trustee may in its
discretion proceed to protect and enforce the rights vested in it by this Indenture by such
appropriate judicial proceedings as are necessary to protect and enforce any of such rights, either
by suit in equity or by action at law or by proceeding in bankruptcy or otherwise, whether for the
specific enforcement of any covenant or agreement contained in this Indenture or in aid of the
exercise of any power granted in this Indenture, or to enforce any other legal or equitable right
vested in the Trustee by this Indenture or by law.

     Section 5.06. Remedies Cumulative and Continuing. Except as provided in the last paragraph of
Section 2.07, all powers and remedies given by this Article 5 to the Trustee or to the Noteholders
shall, to the extent permitted by law, be deemed cumulative and not exclusive of any other power or
remedy given hereunder or otherwise available to the Trustee or the holders of the Notes, by
judicial proceedings or otherwise, to enforce the performance or observance of the covenants and
agreements contained in this Indenture, and no delay or omission of the Trustee or of any holder of
any of the Notes to exercise any right or power accruing upon any default or Event of Default shall
impair any such right or power, or shall be construed to be a waiver of any such default or any
acquiescence therein; and, subject to the provisions of Section 5.04, every power and remedy given
by this Article 5 or by law to the Trustee or to the Noteholders may be exercised from time to
time, and as often as shall be deemed expedient by the Trustee or by the Noteholders.

     Section 5.07. Direction of Proceedings and Waiver of Defaults by Majority of Noteholders. The
holders of a majority in aggregate principal amount of the Notes at the time outstanding determined
in accordance with Section 7.04

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shall have the right to direct the time, method, and place of conducting any proceeding for any
remedy available to the Trustee or exercising any trust or power conferred on the Trustee with
respect to Notes; provided, however, that (a) such direction shall not be in conflict with any rule
of law or with this Indenture, and (b) the Trustee may take any other action deemed proper by the
Trustee that is not inconsistent with such direction. The Trustee may refuse to follow any
direction that it determines is unduly prejudicial to the rights of any other holder or that would
involve the Trustee in personal liability. The holders of a majority in aggregate principal amount
of the Notes at the time outstanding determined in accordance with Section 7.04 may, on behalf of
the holders of all of the Notes waive any past Default or Event of Default hereunder and its
consequences except (i) a Default in the payment of accrued and unpaid interest (including
Additional Interest, if any) or Extension Fees or Additional Extension Fees, if any, on, or the
principal of, the Notes when due which has not been cured pursuant to the provisions of Section
5.01, (ii) a failure by the Company to deliver cash and, if applicable, shares of Common Stock (and
cash in lieu of fractional shares) upon conversion of the Notes, or (iii) a Default in respect of a
covenant or provisions hereof which under Article 9 cannot be modified or amended without the
consent of each holder of an outstanding Note affected thereby. Upon any such waiver the Company,
the Trustee and the holders of the Notes shall be restored to their former positions and rights
hereunder, but no such waiver shall extend to any subsequent or other Default or Event of Default
or impair any right consequent thereon. Whenever any Default or Event of Default hereunder shall
have been waived as permitted by this Section 5.07, said Default or Event of Default shall for all
purposes of the Notes and this Indenture be deemed to have been cured and to be not continuing; but
no such waiver shall extend to any subsequent or other Default or Event of Default or impair any
right consequent thereon.

     Section 5.08. Notice of Defaults. The Trustee shall, within ninety (90) days after the
occurrence and continuance of a Default of which a Responsible Officer has actual knowledge, mail
to all Noteholders as the names and addresses of such holders appear upon the Note Register, notice
of all Defaults known to a Responsible Officer, unless such Defaults shall have been cured or
waived before the giving of such notice; and provided that, except in the case of a Default in the
payment of the principal of, and accrued and unpaid interest (including Additional Interest, if
any) and Extension Fees or Additional Extension Fees, if any, on, any of the Notes, in any such
event the Trustee shall be protected in withholding such notice if and so long as a committee of
trust officers of the Trustee in good faith determine that the withholding of such notice is in the
interests of the Noteholders.

     Section 5.09. Undertaking to Pay Costs. All parties to this Indenture agree, and each holder
of any Note by his acceptance thereof shall be deemed to have agreed, that any court may, in its
discretion, require, in any suit for the enforcement of any right or remedy under this Indenture,
or in any suit against the

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Trustee for any action taken or omitted by it as Trustee, the filing by any party litigant in
such suit of an undertaking to pay the costs of such suit and that such court may in its discretion
assess reasonable costs, including reasonable attorneys’ fees, against any party litigant in such
suit, having due regard to the merits and good faith of the claims or defenses made by such party
litigant; provided that the provisions of this Section 5.09 (to the extent permitted by law) shall
not apply to any suit instituted by the Trustee, to any suit instituted by any Noteholder, or group
of Noteholders, holding in the aggregate more than 10% in principal amount of the Notes at the time
outstanding determined in accordance with Section 7.04, or to any suit instituted by any Noteholder
for the enforcement of the payment of the principal of, and accrued and unpaid interest (including
Additional Interest, if any) and Extension Fees and Additional Extension Fees, if any, on, any Note
on or after the due date expressed in such Note or in the Indenture or to any suit for the
enforcement of the right to convert any Note in accordance with the provisions of Article 13.

ARTICLE 6

Concerning the Trustee

     Section 6.01. Duties and Responsibilities of Trustee. The Trustee, prior to the
occurrence of an Event of Default and after the curing or waiver of all Events of Default which may
have occurred, undertakes to perform such duties and only such duties as are specifically set forth
in this Indenture. In case an Event of Default has occurred (which has not been cured or waived)
the Trustee shall exercise such of the rights and powers vested in it by this Indenture, and use
the same degree of care and skill in their exercise, as a prudent person would exercise or use
under the circumstances in the conduct of such person’s own affairs; provided that if an Event of
Default occurs and is continuing, the Trustee will be under no obligation to exercise any of the
rights or powers under this Indenture at the request or direction of any of the holders unless such
holders have provided to the Trustee reasonable indemnity or security against loss, liability or
expense.

     No provision of this Indenture shall be construed to relieve the Trustee from liability for
its own grossly negligent action, its own grossly negligent failure to act or its own willful
misconduct, except that

     (a) prior to the occurrence of an Event of Default and after the curing or waiving of all
Events of Default which may have occurred:

     (i) the duties and obligations of the Trustee shall be determined solely by the
express provisions of this Indenture and, after it has been qualified thereunder, the
Trust Indenture Act, and the Trustee shall not be liable except for the performance of
such duties and obligations as are specifically set forth in this Indenture and no implied

40

 

covenants or obligations shall be read into this Indenture and the Trust Indenture
Act against the Trustee; and

     (ii) in the absence of bad faith and willful misconduct on the part of the
Trustee, the Trustee may conclusively rely, as to the truth of the statements and the
correctness of the opinions expressed therein, upon any certificates or opinions furnished
to the Trustee and conforming to the requirements of this Indenture; but, in the case of
any such certificates or opinions which by any provisions hereof are specifically required
to be furnished to the Trustee, the Trustee shall be under a duty to examine the same to
determine whether or not they conform to the requirements of this Indenture;

     (b) the Trustee shall not be liable for any error of judgment made in
good faith by a Responsible Officer of the Trustee, unless it shall be established
by a court of competent jurisdiction that the Trustee was grossly negligent in
ascertaining the pertinent facts;

     (c) the Trustee shall not be liable with respect to any action taken or
omitted to be taken by it in good faith and either (i) believed by it to be authorized
or within the discretion or rights or powers conferred upon it by this Indenture or
(ii) in accordance with the direction of the holders of not less than a majority in
principal amount of the Notes at the time outstanding determined as provided in
Section 7.04 relating to the time, method and place of conducting any proceeding
for any remedy available to the Trustee, or exercising any trust or power
conferred upon the Trustee, under this Indenture;

     (d) whether or not therein provided, every provision of this Indenture
relating to the conduct or affecting the liability of, or affording protection to, the
Trustee shall be subject to the provisions of this Section;

     (e) the Trustee shall not be liable in respect of any payment (as to the
correctness of amount, entitlement to receive or any other matters relating to
payment) or notice effected by the Company or any Paying Agent or any records
maintained by any co-registrar with respect to the Notes;

     (f) if any party fails to deliver a notice relating to an event the fact of
which, pursuant to this Indenture, requires notice to be sent to the Trustee, the
Trustee may conclusively rely on its failure to receive such notice as reason to act
as if no such event occurred, unless such Responsible Officer of the Trustee had
actual knowledge of such event;

     (g) in the absence of written investment direction from the Company, all
cash received by the Trustee shall be placed in a non-interest bearing trust
account. In no event shall the Trustee be liable for the selection of investments or

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for investment losses incurred thereon or for losses incurred as a result of the liquidation of any
such investments prior to its stated maturity or the failure of the party directing such
investments prior to its stated maturity or the failure of the party directing such investment to
provide timely written investment direction, and the Trustee shall have no obligation to invest or
reinvest any amounts held hereunder in the absence of such written investment direction from the
Company; and

     (h) in the event that the Trustee is also acting as Custodian, Note Registrar, Paying
Agent or Conversion Agent hereunder, the rights and protections afforded to the Trustee pursuant to
this Article 6 shall also be afforded to it in its capacity as such.

     None of the provisions contained in this Indenture shall require the Trustee to expend
or risk its own funds or otherwise incur personal financial liability in the performance of
any of its duties or in the exercise of any of its rights or powers.

     Section 6.02. Reliance on Documents, Opinions, etc. Except as otherwise provided in Section
6.01:

     (a) the Trustee may conclusively rely and shall be fully protected in
acting upon any resolution, certificate, statement, instrument, opinion, report,
notice, request, consent, order, bond, note or other paper or document believed by
it in good faith to be genuine and to have been signed or presented by the proper
party or parties;

     (b) any request, direction, order or demand of the Company mentioned
herein shall be sufficiently evidenced by an Officers’ Certificate (unless other
evidence in respect thereof be herein specifically prescribed); and any resolution
of the Board of Directors may be evidenced to the Trustee by a copy thereof
certified by the Secretary or an Assistant Secretary of the Company;

     (c) the Trustee may consult with counsel and require an Opinion of
Counsel and any advice of such counsel or Opinion of Counsel shall be full and
complete authorization and protection in respect of any action taken or omitted by
it hereunder in good faith and in accordance with such advice or Opinion of
Counsel;

     (d) the Trustee shall be under no obligation to exercise any of the rights
or powers vested in it by this Indenture at the request, order or direction of any of
the Noteholders pursuant to the provisions of this Indenture, unless such
Noteholders shall have provided to the Trustee security or indemnity satisfactory
to it against the costs, expenses and liabilities which may be incurred therein or
thereby;

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     (e) the Trustee shall not be bound to make any investigation into the
facts or matters stated in any resolution, certificate, statement, instrument,
opinion, report, notice, request, consent, order, bond, note or other paper or
document, but the Trustee, in its discretion, may make such further inquiry or
investigation into such facts or matters as it may see fit, and, if the Trustee shall
determine to make such further inquiry or investigation, it shall be entitled to
examine the books, records and premises of the Company, personally or by agent
or attorney; provided, however, that if the payment within a reasonable time to the
Trustee of the costs, expenses or liabilities likely to be incurred by it in the
making of such investigation is, in the opinion of the Trustee, not reasonably
assured to the Trustee by the security afforded to it by the terms of this Indenture,
the Trustee may require indemnity satisfactory to the Trustee from the
Noteholders against such expenses or liability as a condition to so proceeding; the
reasonable expenses of every such examination shall be paid by the Company or,
if paid by the Trustee or any predecessor Trustee, shall be repaid by the Company
upon demand;

     (f) the Trustee may execute any of the trusts or powers hereunder or
perform any duties hereunder either directly or by or through agents, custodians,
nominees or attorneys and the Trustee shall not be responsible for any misconduct
or negligence on the part of any agent, custodian, nominee or attorney appointed
by it with due care hereunder;

     (g) the permissive rights of the Trustee enumerated herein shall not be
construed as duties;

     (h) 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 Officers’
Certificates or Opinions of Counsel furnished to the Trustee and conforming to the requirements of
this Indenture; but in the case of any such certificates or opinions which by any provisions hereof
are specifically required to be furnished to the Trustee, the Trustee shall be under a duty to
examine the same to determine whether or not they conform to the requirements of this Indenture
(but need not confirm or investigate the accuracy of mathematical calculations or other facts
stated therein); and

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

     In no event shall the Trustee be liable for any consequential loss or damage of any kind
whatsoever (including but not limited to lost profits), even if

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the Trustee has been advised of the likelihood of such loss or damage and regardless of the form of
action other than through the Trustee’s willful misconduct or gross negligence. The Trustee shall
not be charged with knowledge of any default or Event of Default with respect to the Notes, unless
either (1) a Responsible Officer shall have actual knowledge of such default or Event of Default or
(2) written notice of such default or Event of Default shall have been given to the Trustee by the
Company or by any holder of the Notes at the Corporate Trust Office of the Trustee, and such notice
references the Notes and this Indenture; and the permissive rights of the Trustee enumerated herein
shall not be construed as duties.

     Section 6.03. No Responsibility for Recitals, etc. The recitals contained herein and in the
Notes (except in the Trustee’s certificate of authentication) shall be taken as the statements of
the Company, and the Trustee assumes no responsibility for the correctness of the same. The Trustee
makes no representations as to the validity or sufficiency of this Indenture or of the Notes. The
Trustee shall not be accountable for the use or application by the Company of any Notes or the
proceeds of any Notes authenticated and delivered by the Trustee in conformity with the provisions
of this Indenture. The Trustee shall not be responsible or liable for any loss suffered in
connection with any investment of funds made by it in accordance with this Indenture or at the
direction of the Company. Except for information provided by the Trustee concerning the Trustee,
the Trustee shall have no responsibility for any information in any offering memorandum, prospectus
or other disclosure material distributed with respect to the Notes.

     Section 6.04. Trustee, Paying Agents, Conversion Agents or Registrar May Own Notes. The
Trustee, any Paying Agent, any Conversion Agent or Note Registrar, in its individual or any other
capacity, may become the owner or pledgee of Notes with the same rights it would have if it were
not Trustee, Paying Agent, Conversion Agent or Note Registrar.

     Section 6.05. Monies to be Held in Trust. Subject to the provisions of Section 11.04, all
monies received by the Trustee shall, until used or applied as herein provided, be held in trust
for the purposes for which they were received. Money held by the Trustee in trust hereunder need
not be segregated from other funds except to the extent required by law. The Trustee shall be under
no liability for interest on any money received by it hereunder except as may be agreed from time
to time by the Company and the Trustee.

     Section 6.06. Compensation and Expenses of Trustee. The Company covenants and agrees to pay
to the Trustee from time to time, and the Trustee shall be entitled to, reasonable compensation for
all services rendered by it hereunder in any capacity (which shall not be limited by any provision
of law in regard to the compensation. of a trustee of an express trust) as mutually agreed to

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in writing between the Trustee and the Company, and the Company promptly will pay or reimburse the
Trustee upon its request for all reasonable expenses, disbursements and advances reasonably
incurred or made by the Trustee in accordance with any of the provisions of this Indenture
(including the reasonable compensation and the expenses and disbursements of its agents and counsel
and of all persons not regularly in its employ) except any such expense, disbursement or advance as
may arise from its gross negligence, willful misconduct or bad faith. The Company also covenants to
indemnify the Trustee in any capacity under this Indenture and any other document or transaction
entered into in connection herewith and its agents and any authenticating agent for, and to hold
them harmless against, any loss, liability or expense incurred without gross negligence, willful
misconduct or bad faith on the part of the Trustee, its officers, directors, agents or employees,
or such agent or authenticating agent, as the case may be, and arising out of or in connection with
the acceptance or administration of this trust or in any other capacity hereunder, including the
costs and expenses of defending themselves against any claim of liability in the premises. The
obligations of the Company under this Section 6.06 to compensate or indemnify the Trustee and to
pay or reimburse the Trustee for expenses, disbursements and advances shall be secured by a lien
prior to that of the Notes upon all property and funds held or collected by the Trustee as such,
except, subject to the effect of Section 5.03, funds held in trust herewith for the benefit of the
holders of particular Notes prior to the date of the accrual of such unpaid compensation or
identifiable claim. The Trustee’s right to receive payment of any amounts due under this Section
6.06 shall not be subordinate to any other liability or Indebtedness of the Company. The obligation
of the Company under this Section 6.06 shall survive the satisfaction and discharge of this
Indenture and the earlier resignation or removal or the Trustee. The Company need not pay for any
settlement made without its consent, which consent shall not be unreasonably withheld. The
indemnification provided in this Section 6.06 shall extend to the officers, directors, agents and
employees of the Trustee.

     When the Trustee and its agents and any authenticating agent incur expenses or render services
after an Event of Default specified in Section 5.01(h) or Section 5.01(i) occurs, the expenses and
the compensation for the services are intended to constitute expenses of administration under any
bankruptcy, insolvency or similar laws.

     Section 6.07. Officers’ Certificate as Evidence. Whenever in the administration of the
provisions of this Indenture the Trustee shall deem it necessary or desirable that a matter be
proved or established prior to taking or omitting any action hereunder, such matter (unless other
evidence in respect thereof be herein specifically prescribed) may, in the absence of gross
negligence, willful misconduct, recklessness and bad faith on the part of the Trustee, be deemed to
be conclusively proved and established by an Officers’ Certificate delivered to the Trustee, and
such Officers’ Certificate, in the absence of gross

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negligence, willful misconduct, recklessness and bad faith on the part of the Trustee, shall be
full warrant to the Trustee for any action taken or omitted by it under the provisions of this
Indenture upon the faith thereof.

     Section 6.08. Conflicting Interests of Trustee. If the Trustee has or shall acquire a
conflicting interest within the meaning of the Trust Indenture Act, the Trustee shall either
eliminate such interest or resign, to the extent and in the manner provided by, and subject to the
provisions of, the Trust Indenture Act and this Indenture.

     Section 6.09. Eligibility of Trustee. There shall at all times be a Trustee hereunder which
shall be a Person that is eligible pursuant to the Trust Indenture Act to act as such and has a
combined capital and surplus of at least $50,000,000. If such Person publishes reports of condition
at least annually, pursuant to law or to the requirements of any supervising or examining
authority, then for the purposes of this Section, the combined capital and surplus of such Person
shall be deemed to be its combined capital and surplus as set forth in its most recent report of
condition so published. If at any time the Trustee shall cease to be eligible in accordance with
the provisions of this Section, it shall resign immediately in the manner and with the effect
hereinafter specified in this Article.

     Section 6.10. Resignation or Removal of Trustee.

     (a) The Trustee may at any time resign by giving written notice of such
resignation to the Company and by mailing notice thereof to the Noteholders at
their addresses as they shall appear on the Note Register. Upon receiving such
notice of resignation, the Company shall promptly, but in no event later than 60
days after such resignation or removal, appoint a successor trustee by written
instrument, in duplicate, executed by order of the Board of Directors, one copy of
which instrument shall be delivered to the resigning Trustee and one copy to the
successor trustee. If no successor trustee shall have been so appointed and have
accepted appointment sixty (60) days after the retiring Trustee resigns or is
removed, the resigning Trustee may petition any court of competent jurisdiction
for the appointment of a successor trustee, or any Noteholder who has been a
bona fide holder of a Note or Notes for at least six months may, subject to the
provisions of Section 5.09, on behalf of himself and all others similarly situated,
petition any such court for the appointment of a successor trustee. Such court
may thereupon, after such notice, if any, as it may deem proper and prescribe,
appoint a successor trustee.

     (b) (x) At any time at which no Default or Event of Default has
occurred and is continuing or (y) in case at any time any of the following shall
occur:

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     (i) the Trustee shall fail to comply with Section 6.08 within a reasonable time
after written request therefor by the Company or by any Noteholder who has been a bona
fide holder of a Note or Notes for at least six (6) months, or

     (ii) the Trustee shall cease to be eligible in accordance with the provisions of
Section 6.09 and shall fail to resign after written request therefor by the Company or by
any such Noteholder, or

     (iii) the Trustee shall become incapable of acting, or shall be adjudged a
bankrupt or insolvent, or a receiver of the Trustee or of its property shall be appointed,
or any public officer shall take charge or control of the Trustee or of its property or
affairs for the purpose of rehabilitation, conservation or liquidation,

then, in any such case of (x) or (y), the Company may by a Board Resolution remove the Trustee and
appoint a successor trustee by written instrument, in duplicate, executed by order of the Board of
Directors, one copy of which instrument shall be delivered to the Trustee so removed and one copy
to the successor trustee, or, subject to the provisions of Section 5.09, any Noteholder who has
been a bona fide holder of a Note or Notes for at least six (6) months may, on behalf of himself
and all others similarly situated, petition any court of competent jurisdiction for the removal of
the Trustee and the appointment of a successor trustee. Such court may thereupon, after such
notice, if any, as it may deem proper and prescribe, remove the Trustee and appoint a successor
Trustee.

     (c) The holders of a majority in aggregate principal amount of the Notes
at the time outstanding, as determined in accordance with Section 7.04, may at
any time remove the Trustee and nominate a successor trustee which shall be
deemed appointed as successor trustee unless within ten (10) days after notice to
the Company of such nomination the Company objects thereto, in which case the
Trustee so removed or any Noteholder, upon the terms and conditions and
otherwise as in Section 6.10(a) provided, may petition any court of competent
jurisdiction for an appointment of a successor Trustee.

     (d) Any resignation or removal of the Trustee and appointment of a
successor trustee pursuant to any of the provisions of this Section 6.10 shall
become effective upon acceptance of appointment by the successor Trustee as
provided in Section 6.11.

     Section 6.11. Acceptance by Successor Trustee. Any successor Trustee appointed as provided in
Section 6.10 shall execute, acknowledge and deliver to the Company and to its predecessor Trustee
an instrument accepting such appointment hereunder, and thereupon the resignation or removal of the
predecessor Trustee shall become effective and such successor Trustee, without

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any further act, deed or conveyance, shall become vested with all the rights, powers, duties and
obligations of its predecessor hereunder, with like effect as if originally named as Trustee
herein; but, nevertheless, on the written request of the Company or of the successor Trustee, the
Trustee ceasing to act shall, upon payment of any amounts then due it pursuant to the provisions of
Section 6.06, execute and deliver an instrument transferring to such successor Trustee all the
rights and powers of the Trustee so ceasing to act. Upon request of any such successor Trustee, the
Company shall execute any and all instruments in writing for more fully and certainly vesting in
and confirming to such successor Trustee all such rights and powers. Any Trustee ceasing to act
shall, nevertheless, retain a lien upon all property and funds held or collected by such Trustee as
such, except for funds held in trust for the benefit of holders of particular Notes, to secure any
amounts then due it pursuant to the provisions of Section 6.06.

     No successor Trustee shall accept appointment as provided in this Section 6.11 unless at the
time of such acceptance such successor Trustee shall be qualified under the provisions of Section
6.08 and be eligible under the provisions of Section 6.09.

     Upon acceptance of appointment by a successor Trustee as provided in this Section 6.11, each
of the Company and the successor Trustee, at the written direction and at the expense of the
Company shall mail or cause to be mailed notice of the succession of such Trustee hereunder to the
Noteholders at their addresses as they shall appear on the Note Register. If the Company fails to
mail such notice within ten (10) days after acceptance of appointment by the successor Trustee, the
successor Trustee shall cause such notice to be mailed at the expense of the Company.

     Section 6.12. Succession by Merger, etc. Any corporation or other entity into which the
Trustee may be merged or converted or with which it may be consolidated, or any corporation or
other entity resulting from any merger, conversion or consolidation to which the Trustee shall be a
party, or any corporation or other entity succeeding to all or substantially all of the corporate
trust business of the Trustee (including the administration of this Indenture), shall be the
successor to the Trustee hereunder without the execution or filing of any paper or any further act
on the part of any of the parties hereto, provided that in the case of any corporation or other
entity succeeding to all or substantially all of the corporate trust business of the Trustee such
corporation or other entity shall be qualified under the provisions of Section 6.08 and eligible
under the provisions of Section 6.09.

     In case at the time such successor to the Trustee shall succeed to the trusts created by this
Indenture, any of the Notes shall have been authenticated but not delivered, any such successor to
the Trustee may adopt the certificate of authentication of any predecessor trustee or
authenticating agent appointed by

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such predecessor trustee, and deliver such Notes so authenticated, and in case at that time any of
the Notes shall not have been authenticated, any successor to the Trustee or an authenticating
agent appointed by such successor trustee may authenticate such Notes either in the name of any
predecessor trustee hereunder or in the name of the successor trustee; and in all such cases such
certificates shall have the full force which it is anywhere in the Notes or in this Indenture
provided that the certificate of the Trustee shall have; provided, however, that the right to adopt
the certificate of authentication of any predecessor Trustee or to authenticate Notes in the name
of any predecessor Trustee shall apply only to its successor or successors by merger, conversion or
consolidation.

     Section 6.13. Limitation on Rights of Trustee as Creditor. If and when the Trustee shall be or
become a creditor of the Company (or any other obligor upon the Notes), the Trustee shall be
subject to the provisions of the Trust Indenture Act regarding the collection of the claims against
the Company (or any such other obligor).

     Section 6.14. Trustee’s Application for Instructions from the Company. Any application by the
Trustee for written instructions from the Company (other than with regard to any action proposed to
be taken or omitted to be taken by the Trustee that affects the rights of the holders of the Notes
under this Indenture) 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 (3) Business Days after the date any officer of the Company actually receives such
application, unless any such officer shall have consented in writing to any earlier date), unless,
prior to taking any such action (or the effective date in the case of any omission), the Trustee
shall have received written instructions in response to such proposal specifying the action to be
taken or omitted.

     Section 6.15. Authorization of Trustee to Take Other Action. The Trustee is hereby authorized
and directed to enter into and take any actions or deliver such consents required by or requested
under this Indenture and to take such other actions and enter into such other documents as directed
by the Holders of a majority of outstanding aggregate principal amount of the Notes (except as
expressly stated herein, including as set forth in Sections 5.01, 5.02 5.04 and Section 9.02).
Subject to Section 9.02, if at any time any action by or the consent of the Trustee is required
under this Indenture or any other document entered into by the Trustee at the direction of a
majority of the Holders of outstanding aggregate principal amount of the Notes, such action or
consent shall be taken or given by the Trustee upon the consent to such action by the Holders of a
majority of outstanding aggregate principal amount of the Notes.

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     The Trustee shall not be liable with respect to any action taken or omitted to be taken by it
in good faith in accordance with the direction from the Holders of at least 25% in aggregate
principal amount of the then outstanding Notes as expressly set forth herein, including as set
forth in Sections 5.01, 5.02 and 5.04 or, if not expressly set forth herein, in accordance with the
direction from the Holders of a majority of outstanding aggregate principal amount of Notes
hereunder. This provision is intended solely for the benefit of the Trustee and its successor and
assigns and is not intended to and will not entitle the other parties hereto to any defense, claim
or counterclaim under or in relation to any of the Notes or this Indenture, or confer any rights or
benefits on any other party hereto.

ARTICLE 7

Concerning the Noteholders

     Section 7.01. Action by Noteholders. Whenever in this Indenture it is provided that the
holders of a specified percentage in aggregate principal amount of the Notes may take any action
(including the making of any demand or request, the giving of any notice, consent or waiver or the
taking of any other action), the fact that at the time of taking any such action, the holders of
such specified percentage have joined therein may be evidenced (a) by any instrument or any number
of instruments of similar tenor executed by Noteholders in person or by agent or proxy appointed in
writing, or (b) by the record of the Noteholders voting in favor thereof at any meeting of
Noteholders duly called and held in accordance with the provisions of Article 8, or (c) by a
combination of such instrument or instruments and any such record of such a meeting of Noteholders
and, except as herein otherwise expressly provided, such action shall become effective when such
instrument or instruments or such record are delivered to the Trustee and, where it is hereby
expressly required, to the Company. Proof of execution of any such instrument or record or of a
writing appointing any such agent shall be sufficient for any purpose of this Indenture and
conclusive in favor of the Trustee and the Company, if made in the manner provided in this Section.
Whenever the Company or the Trustee solicits the taking of any action by the holders of the Notes,
the Company or the Trustee may fix, but shall not be required to, in advance of such solicitation,
a date as the record date for determining Noteholders entitled to take such action. The record date
if one is selected shall be not more than fifteen (15) days prior to the date of commencement of
solicitation of such action. Any request, demand, authorization, direction, notice, consent, waiver
or other action by a Holder of any Note shall bind every future Holder of the same Note, and the
holder of every Note issued upon the registration of transfer thereof or in exchange therefor or in
lieu thereof in respect of anything done, omitted, or suffered to be done by the Trustee or the
Company in reliance thereon, whether or not notation of such action is made upon such Note.

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     Section 7.02. Proof of Execution by Noteholders. Subject to the provisions of Section 6.01,
Section 6.02 and Section 8.05, proof of the execution of any instrument by a Noteholder or his
agent or proxy shall be sufficient if made in accordance with such reasonable rules and regulations
as may be prescribed by the Trustee or in such manner as shall be satisfactory to the Trustee. The
holding of Notes shall be proved by the Note Register or by a certificate of the Note Registrar.
The record of any Noteholders’ meeting shall be proved in the manner provided in Section 8.06.

     Section 7.03. Who Are Deemed Absolute Owners. The Company, the Trustee, any authenticating
agent, any Paying Agent, any Conversion Agent and any Note Registrar may deem the person in whose
name such Note shall be registered upon the Note Register to be, and may treat such person as, the
absolute owner of such Note (whether or not such Note shall be overdue and notwithstanding any
notation of ownership or other writing thereon made by any Person other than the Company or any
Note Registrar) for the purpose of receiving payment of or on account of the principal of, and
accrued and unpaid interest (including Additional Interest, if any) and Extension Fees and
Additional Extension Fees, if any, on, such Note, for conversion of such Note and for all other
purposes; and neither the Company nor the Trustee nor any Paying Agent nor any Conversion Agent nor
any Note Registrar shall be affected by any notice to the contrary. All such payments so made to
any holder for the time being, or upon his order, shall be valid, and, to the extent of the sum or
sums so paid, effectual to satisfy and discharge the liability for monies payable upon any such
Note. Notwithstanding anything to the contrary in this Indenture or the Notes, following an Event
of Default, any holder of a beneficial interest in a Global Note may directly enforce against the
Company, without the consent, solicitation, proxy, authorization or any other action of the
Depositary or any other person, such holder’s right to exchange such beneficial interest for a Note
in certificated form in accordance with the provisions of this Indenture.

     Section 7.04. Company-owned Notes Disregarded. In determining whether the holders of the
requisite aggregate principal amount of Notes have concurred in any direction, consent, waiver or
other action under this Indenture, Notes that are owned by the Company or any other obligor on the
Notes or by any person directly or indirectly controlling or controlled by or under direct or
indirect common control with the Company or any other obligor on such Notes shall be disregarded
and deemed not to be outstanding for the purpose of any such determination; provided that, for the
purposes of determining whether the Trustee shall be protected in relying on any such direction,
consent, waiver or other action, only Notes that a Responsible Officer knows are so owned shall be
so disregarded. Notes so owned that have been pledged in good faith may be regarded as outstanding
for the purposes of this Section 7.04 if the pledgee shall establish to the satisfaction of the
Trustee the pledgee’s right to vote such Notes and that the pledgee is not the Company, any other
obligor on the Notes or a

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person directly or indirectly controlling or controlled by or under direct or indirect common
control with the Company or any such other obligor. In the case of a dispute as to such right, any
decision by the Trustee taken upon the advice of counsel shall be full protection to the Trustee.
Upon request of the Trustee, the Company shall furnish to the Trustee promptly an Officers’
Certificate listing and identifying all Notes, if any, known by the Company to be owned or held by
or for the account of any of the above described persons; and, subject to Section 6.01, the Trustee
shall be entitled to accept such Officers’ Certificate as conclusive evidence of the facts therein
set forth and of the fact that all Notes not listed therein are outstanding for the purpose of any
such determination.

     Section 7.05.
Revocation of Consents; Future Holders Bound. At any time prior to (but not
after) the evidencing to the Trustee, as provided in Section 9.01, of the taking of any action by
the holders of the percentage in aggregate principal amount of the Notes specified in this
Indenture in connection with such action, any holder of a Note that is shown by the evidence to be
included in the Notes the holders of which have consented to such action may, by filing written
notice with the Trustee at its Corporate Trust Office and upon proof of holding as provided in
Section 7.02, revoke such action so far as concerns such Note. Except as aforesaid, any such action
taken by the holder of any Note shall be conclusive and binding upon such holder and upon all
future holders and owners of such Note and of any Notes issued in exchange or substitution
therefor, irrespective of whether any notation in regard thereto is made upon such Note or any Note
issued in exchange or substitution therefor.

ARTICLE 8

Noteholders’ Meetings

     Section 8.01. Purpose of Meetings. A meeting of Noteholders may be called at any time and from
time to time pursuant to the provisions of this Article 8 for any of the following purposes:

     (a) to give any notice to the Company or to the Trustee or to give any
directions to the Trustee permitted under this Indenture, or to consent to the
waiving of any default or Event of Default hereunder and its consequences, or to
take any other action authorized to be taken by Noteholders pursuant to any of the
provisions of Article 5;

     (b) to remove the Trustee and nominate a successor trustee pursuant to
the provisions of Article 6;

     (c) to consent to the execution of an indenture or indentures
supplemental hereto pursuant to the provisions of Section 9.02; or

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     (d) to take any other action authorized to be taken by or on behalf of the holders of any
specified aggregate principal amount of the Notes under any other provision of this Indenture or
under applicable law.

     Section 8.02. Call of Meetings by Trustee. The Trustee may at any time call a meeting of
Noteholders to take any action specified in Section 8.01, to be held at such time and at such place
as the Trustee shall determine. Notice of every meeting of the Noteholders, setting forth the time
and the place of such meeting and in general terms the action proposed to be taken at such meeting
and the establishment of any record date pursuant to Section 7.01, shall be mailed to holders of
such Notes at their addresses as they shall appear on the Note Register. Such notice shall also be
mailed to the Company. Such notices shall be mailed not less than twenty (20) nor more than ninety
(90) days prior to the date fixed for the meeting.

     Any meeting of Noteholders shall be valid without notice if the holders of all Notes then
outstanding are present in person or by proxy or if notice is waived before or after the meeting by
the holders of all Notes outstanding, and if the Company and the Trustee are either present by duly
authorized representatives or have, before or after the meeting, waived notice.

     Section 8.03. Call of Meetings by Company or Noteholders. In case at any time the Company,
pursuant to a resolution of its Board of Directors, or the holders of at least 10% in aggregate
principal amount of the Notes then outstanding, shall have requested the Trustee to call a meeting
of Noteholders, by written request setting forth in reasonable detail the action proposed to be
taken at the meeting, and the Trustee shall not have mailed the notice of such meeting within
twenty (20) days after receipt of such request, then the Company or such Noteholders may determine
the time and the place for such meeting and may call such meeting to take any action authorized in
Section 8.01, by mailing notice thereof as provided in Section 8.02.

     Section 8.04. Qualifications for Voting. To be entitled to vote at any meeting of Noteholders
a person shall (a) be a holder of one or more Notes on the record date pertaining to such meeting
or (b) be a person appointed by an instrument in writing as proxy by a holder of one or more Notes.
The only persons who shall be entitled to be present or to speak at any meeting of Noteholders
shall be the persons entitled to vote at such meeting and their counsel and any representatives of
the Trustee and its counsel and any representatives of the Company and its counsel.

     Section 8.05. Regulations. Notwithstanding any other provisions of this Indenture, the Trustee
may make such reasonable regulations as it may deem advisable for any meeting of Noteholders, in
regard to proof of the holding of Notes and of the appointment of proxies, and in regard to the
appointment and

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duties of inspectors of votes, the submission and examination of proxies, certificates and
other evidence of the right to vote, and such other matters concerning the conduct of the
meeting as it shall think fit.

     The Trustee shall, by an instrument in writing, appoint a temporary chairman of the meeting,
unless the meeting shall have been called by the Company or by Noteholders as provided in Section
8.03, in which case the Company or the Noteholders calling the meeting, as the case may be, shall
in like manner appoint a temporary chairman. A permanent chairman and a permanent secretary of the
meeting shall be elected by vote of the holders of a majority in principal amount of the Notes
represented at the meeting and entitled to vote at the meeting.

     Subject to the provisions of Section 7.04, at any meeting of Noteholders each Noteholder or
proxyholder shall be entitled to one vote for each $1,000 principal amount of Notes held or
represented by him; provided, however, that no vote shall be cast or counted at any meeting in
respect of any Note challenged as not outstanding and ruled by the chairman of the meeting to be
not outstanding. The chairman of the meeting shall have no right to vote other than by virtue of
Notes held by him or instruments in writing as aforesaid duly designating him as the proxy to vote
on behalf of other Noteholders. Any meeting of Noteholders duly called pursuant to the provisions
of Section 8.02 or Section 8.03 may be adjourned from time to time by the holders of a majority of
the aggregate principal amount of Notes represented at the meeting, whether or not constituting a
quorum, and the meeting may be held as so adjourned without further notice.

     Section 8.06. Voting. The vote upon any resolution submitted to any meeting of Noteholders
shall be by written ballot on which shall be subscribed the signatures of the Noteholders or of
their representatives by proxy and the principal amount of the Notes held or represented by them.
The permanent chairman of the meeting shall appoint two inspectors of votes who shall count all
votes cast at the meeting for or against any resolution and who shall make and file with the
secretary of the meeting their verified written reports in duplicate of all votes cast at the
meeting. A record in duplicate of the proceedings of each meeting of Noteholders shall be prepared
by the secretary of the meeting and there shall be attached to said record the original reports of
the inspectors of votes on any vote by ballot taken thereat and affidavits by one or more persons
having knowledge of the facts setting forth a copy of the notice of the meeting and showing that
said notice was mailed as provided in Section 8.02 or 8.03, as applicable. The record shall show
the principal amount of the Notes voting in favor of or against any resolution. The record shall be
signed and verified by the affidavits of the permanent chairman and secretary of the meeting and
one of the duplicates shall be delivered to the Company and the other to the Trustee to be
preserved by the Trustee, the latter to have attached thereto the ballots voted at the meeting.

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     Any record so signed and verified shall be conclusive evidence of the matters
therein stated.

     Section 8.07. No Delay of Rights by Meeting. Nothing contained in this Article 8 shall be
deemed or construed to authorize or permit, by reason of any call of a meeting of Noteholders or
any rights expressly or impliedly conferred hereunder to make such call, any hindrance or delay in
the exercise of any right or rights conferred upon or reserved to the Trustee or to the Noteholders
under any of the provisions of this Indenture or of the Notes.

ARTICLE 9

Supplemental Indentures

     Section 9.01. Supplemental Indentures Without Consent of Noteholders. The Company, when
authorized by the resolutions of the Board of Directors, and the Trustee, at the Company’s expense,
may from time to time and at any time enter into an indenture or indentures supplemental hereto for
one or more of the following purposes:

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

     (b) to provide for the assumption by a Successor Company of the
obligations of the Company under the Indenture pursuant to Article 10;

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

     (d) to add guarantees with respect to the Notes;

     (e) to secure the Notes;

     (f) to add to the covenants of the Company for the benefit of the holders
or surrender any right or power conferred upon the Company;

     (g) to make any change that does not materially and adversely affect the
rights of any holder;

     (h) to comply with any requirements of the Commission in connection with the qualification
of the Indenture under the Trust Indenture Act; or

     (i) to provide for a successor trustee with respect to the notes.

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     Upon the written request of the Company, accompanied by a Board Resolution authorizing
the execution of such supplemental indenture, the Trustee is hereby authorized to join with the
Company in the execution of any such supplemental indenture, to make any further appropriate
agreements and stipulations which may be therein contained and to accept the conveyance, transfer
and assignment of any property thereunder, but the Trustee shall not be obligated to enter into any
supplemental indenture which affects the Trustee’s own rights, duties or immunities under this
Indenture or otherwise.

     Any supplemental indenture authorized by the provisions of this Section 9.01 may be executed
by the Company and the Trustee without the consent of the holders of any of the Notes at the time
outstanding.

     Section 9.02. Supplemental Indentures With Consent of Noteholders. With the consent (evidenced
as provided in Article 7) of the holders of at least a majority in aggregate principal amount of
the Notes at the time outstanding (determined in accordance with Article 7 and including, without
limitation, consents obtained in connection with a purchase of, or tender offer or exchange offer
for, Notes), the Company, when authorized by the resolutions of the Board of Directors, and the
Trustee may from time to time and at any time enter into an indenture or indentures supplemental
hereto for the purpose of adding any provisions to or changing in any manner or eliminating any of
the provisions of this Indenture or any supplemental indenture or of modifying in any manner the
rights of the holders of the Notes; provided, however, that no such supplemental indenture shall:

     (a) reduce the percentage in aggregate principal amount of Notes the
holders of which must consent to an amendment;

     (b) reduce the rate or amount, or extend the stated time for payment, of
interest (including Additional Interest, if any) or Extension Fees or Additional
Extension Fees, if any, on any Note;

     (c) reduce the principal, or extend the Maturity Date, of any Note;

     (d) make any change that adversely affects the conversion rights of any
Notes;

     (e) reduce the Fundamental Change Repurchase Price of any Note or
amend or modify in any manner adverse to the holders of the Notes the
Company’s obligation to make such payments;

     (f) change the place or currency of payment of principal or interest
(including Additional Interest, if any) and Extension Fees and Additional
Extension Fees, if any, in respect of any Note;

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     (g) impair the right of any holder to receive payment of principal of, and interest
(including Additional Interest and, if any) and Extension Fees and Additional Extension Fees, if
any, on, such holder’s Notes on or after the due dates therefor or to institute suit for the
enforcement of any payment on or with respect to such holder’s Notes; or

     (h) make any change in the provisions of this Article 9 that require each holder’s consent
or in the waiver provisions in Section 5.01 and Section 5.07.

in each case without the consent of each holder of an outstanding Note affected.

     Notwithstanding the foregoing, any amendment to the Indenture or the Notes or waiver of
compliance with a provision which (i) requires the consent of the Holders of the Notes in
accordance with this Section 9.02, and (ii) similarly affects the holders of the Notes and the
holders of the 2011 Notes, shall instead require the consent of the holders of at least a majority
in principal amount of the then outstanding 2011 Notes and Notes voting together as a single class.

     Upon the written request of the Company, accompanied by a copy of the Board Resolutions
authorizing the execution of any such supplemental indenture, and upon the filing with the Trustee
of evidence of the consent of Noteholders as aforesaid, the Trustee shall join with the Company in
the execution of such supplemental indenture unless such supplemental indenture affects the
Trustee’s own rights, duties or immunities under this Indenture or otherwise, in which case the
Trustee shall not be obligated to enter into such supplemental indenture.

     It shall not be necessary for the consent of the Noteholders under this Section 9.02 to
approve the particular form of any proposed supplemental indenture, but it shall be sufficient if
such consent shall approve the substance thereof. After an amendment under the Indenture becomes
effective, the Company shall mail to the holders a notice briefly describing such amendment.
However, the failure to give such notice to all the holders, or any defect in the notice, will not
impair or affect the validity of the amendment.

     Section 9.03. Effect of Supplemental Indentures. Any supplemental indenture executed pursuant
to the provisions of this Article 9 shall comply with the Trust Indenture Act, as then in effect,
provided that this Section 9.03 shall not require such supplemental indenture or the Trustee to be
qualified under the Trust Indenture Act prior to the time such qualification is in fact required
under the terms of the Trust Indenture Act, nor shall it constitute any admission or acknowledgment
by any party to such supplemental indenture that any such qualification is required prior to the
time such qualification is in fact required under the terms of the Trust Indenture Act. Upon the
execution of any supplemental indenture pursuant to the provisions of this Article 9, this
Indenture shall be and be deemed to be modified and amended in accordance therewith and

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the respective rights, limitation of rights, obligations, duties and immunities under this
Indenture of the Trustee, the Company, any other obligor hereunder and the Noteholders shall
thereafter be determined, exercised and enforced hereunder subject in all respects to such
modifications and amendments and all the terms and conditions of any such supplemental indenture
shall be and be deemed to be part of the terms and conditions of this Indenture for any and all
purposes.

     Section 9.04. Notation on Notes. Notes authenticated and delivered after the execution of any
supplemental indenture pursuant to the provisions of this Article 9 may bear a notation in a form
approved by the Trustee as to any matter provided for in such supplemental indenture. If the
Company or the Trustee shall so determine, new Notes so modified as to conform, in the opinion of
the Trustee and the Board of Directors, to any modification of this Indenture contained in any such
supplemental indenture may, at the Company’s expense, be prepared and executed by the Company,
authenticated by the Trustee (or an authenticating agent duly appointed by the Trustee pursuant to
Section 15.10) and delivered in exchange for the Notes then outstanding, upon surrender of such
Notes then outstanding.

     Section 9.05. Evidence of Compliance of Supplemental Indenture to be Furnished to Trustee. The
Trustee is entitled to receive, and will be fully protected in relying upon, an Opinion of Counsel
and Officers’ Certificate stating that the execution of any amendment, supplement or waiver
authorized pursuant to this Article is authorized or permitted by the Indenture.

ARTICLE 10

Consolidation, Merger, Sale, Conveyance and Lease

     Section 10.01. Company May Consolidate, etc. on Certain Terms. Subject to the provisions
of Section 10.02, the Company shall not consolidate with, merge with or into, or convey, transfer,
lease or otherwise dispose of all or substantially all of its assets and properties to another
Person, in a single transaction or a series of transactions, unless:

     (a) the resulting, surviving or transferee Person (the “Successor Company”) if not the
Company shall be a corporation, partnership, trust or limited liability company organized and
existing under the laws of the United States of America, any State thereof or the District of
Columbia and the Successor Company (if not the Company) shall 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 Notes and this Indenture and, to the extent that it is
otherwise still operative, shall expressly assume all the obligations of the Company under the
Registration Rights Agreement; and

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     (b) immediately after giving effect to such transaction, no Default or Event of
Default shall have occurred and be continuing.

     For purposes of this Section 10.01, 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, 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.

     Section 10.02. Successor Corporation to be Substituted. In case of any such consolidation,
merger, conveyance, transfer, lease or other disposition and upon the assumption by the Successor
Company, by supplemental indenture, executed and delivered to the Trustee and satisfactory in form
to the Trustee, of the due and punctual payment of the principal of, and accrued and unpaid
interest (including Additional Interest, if any) and Extension Fees and Additional Extension Fees,
if any, on, all of the Notes, the due and punctual conversion of the Notes and the due and punctual
performance of all of the covenants and conditions of this Indenture to be performed by the
Company, such Successor Company shall succeed to and be substituted for the Company with the same
effect as if the Successor Company had been named herein as the Company and thereafter, except in
the case of a lease, the Company shall be relieved of all obligations under this indenture and the
Notes. Such Successor Company thereupon may cause to be signed, and may issue either in its own
name or in the name of the Company any or all of the Notes issuable hereunder which theretofore
shall not have been signed by the Company and delivered to the Trustee; and, upon the order of such
Successor Company instead of the Company and subject to all the terms, conditions and limitations
in this Indenture prescribed, the Trustee shall authenticate and shall deliver, or cause to be
authenticated and delivered, any Notes which previously shall have been signed and delivered by the
officers of the Company to the Trustee for authentication, and any Notes which such Successor
Company thereafter shall cause to be signed and delivered to the Trustee for that purpose. All the
Notes so issued shall in all respects have the same legal rank and benefit under this Indenture as
the Notes theretofore or thereafter issued in accordance with the terms of this Indenture as though
all of such Notes had been issued at the date of the execution hereof. In the event of any such
consolidation, merger, conveyance, transfer, lease or other disposition, the person named as the
“Company” in the first paragraph of this Indenture or any successor which shall thereafter have
become such in the manner prescribed in this Article 10 may be dissolved, wound up and liquidated
at any time thereafter and such person shall be released from its liabilities as obligor and maker
of the Notes and from its obligations under this Indenture.

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     In case of any such consolidation, merger, conveyance, transfer, lease or other
disposition, such changes in phraseology and form (but not in substance) may be made in the Notes
thereafter to be issued as may be appropriate.

     Section 10.03. Officers’ Certificate and Opinion of Counsel to be Given to Trustee. No
consolidation, merger, conveyance, transfer, lease or other disposition shall be effective unless
the Trustee shall receive an Officers’ Certificate and an Opinion of Counsel as conclusive evidence
that any such consolidation, merger, conveyance, transfer, lease or other disposition and any such
assumption complies with the provisions of this Article 10.

ARTICLE 11

Satisfaction and Discharge of Indenture

     Section 11.01. Discharge of Indenture. When (a) the Company shall deliver to the Trustee
for cancellation all Notes theretofore authenticated (other than any Notes that have been
destroyed, lost or stolen and in lieu of or in substitution for which other Notes shall have been
authenticated and delivered) and not theretofore canceled, or (b) all the Notes not theretofore
canceled or delivered to the Trustee for cancellation shall have become due and payable, whether on
the Maturity Date or on any earlier Fundamental Change Repurchase Date or upon conversion or
otherwise, and the Company shall deposit with the Trustee, in trust, cash and shares of Common
Stock, if applicable, sufficient to pay at maturity all of the Notes (other than any Notes that
shall have been mutilated, destroyed, lost or stolen and in lieu of or in substitution for which
other Notes shall have been authenticated and delivered) not theretofore canceled or delivered to
the Trustee for cancellation, including principal and accrued and unpaid interest (including
Additional Interest, if any) and Extension Fees or Additional Extension Fees, if any, due thereon,
and if the Company shall also pay or cause to be paid all other sums payable hereunder by the
Company, then this Indenture shall cease to be of further effect except as to (i) the right of
holders to receive payments of principal of, and accrued and unpaid interest (including Additional
Interest, if any) and Extension Fees or Additional Extension Fees, if any, and any unpaid
Conversion Obligation and Additional Shares, if any, on, the Notes and the other rights, duties and
obligations of Noteholders, as beneficiaries hereof with respect to the amounts, if any, so
deposited with the Trustee, (ii) the rights, obligations and immunities of the Trustee hereunder
and (iii) the obligations of the Company under Section 6.06, and the Trustee, on written demand of
the Company accompanied by an Officers’ Certificate and an Opinion of Counsel as required by
Section 15.05 and at the cost and expense of the Company, shall execute proper instruments
acknowledging satisfaction of and discharging this Indenture; the Company, however, hereby agrees
to reimburse the Trustee for any costs or expenses thereafter reasonably and properly incurred

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by the Trustee and to compensate the Trustee for any services thereafter reasonably and
properly rendered by the Trustee in connection with this Indenture or the Notes.

     Section 11.02. Deposited Monies to be Held in Trust by Trustee. Subject to Section 11.04, all
monies deposited with the Trustee pursuant to Section 11.01 shall be held in trust and applied by
it to the payment, either directly or through any Paying Agent (including the Company if acting as
its own Paying Agent), to the holders of the particular Notes for the payment of which such monies
have been deposited with the Trustee, of all sums due thereon for principal and accrued and unpaid
interest (including Additional Interest, if any) and Extension Fees and Additional Extension Fees,
if any.

     Section 11.03. Paying Agent to Repay Monies Held. Upon the satisfaction and discharge of this
Indenture, all monies then held by any Paying Agent of the Notes (other than the Trustee) shall,
upon written request of the Company, be repaid to it or paid to the Trustee, and thereupon such
Paying Agent shall be released from all further liability with respect to such monies.

     Section 11.04. Return of Unclaimed Monies. Subject to the requirements of applicable law, any
monies deposited with or paid to the Trustee for payment of the principal of, or accrued and unpaid
interest (including Additional Interest, if any) and Extension Fees and Additional Extension Fees,
if any, on, Notes and not applied but remaining unclaimed by the Noteholders for two years after
the date upon which the principal of, or such accrued and unpaid interest or fees, if any, on, such
Notes, as the case may be, shall have become due and payable, shall be repaid to the Company by the
Trustee on written request and all liability of the Trustee shall thereupon cease with respect to
such monies; and the holder of any of the Notes shall thereafter look only to the Company for any
payment which such holder may be entitled to collect unless an applicable abandoned property law
designates another person. The Trustee shall, promptly after such payment of the principal of, and
any accrued and unpaid interest (including Additional Interest, if any) and Extension Fees and
Additional Extension Fees, if any, on, Notes, as described in this Section 11.04 and upon written
request of the Company, return to the Company any funds in excess of the amount required for such
payment.

     Section 11.05. Reinstatement. If (i) the Trustee or the Paying Agent is unable to apply any
money in accordance with Section 11.02 by reason of any order or judgment of any court or
governmental authority enjoining, restraining or otherwise prohibiting such application and (ii)
the holders of at least a majority in principal amount of the then outstanding Notes so request by
written notice to the Trustee, the Company’s obligations under this Indenture shall be revived and
reinstated as though no deposit had occurred pursuant to Section 11.01 until such time as the
Trustee or the Paying Agent is permitted to apply all such money in

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accordance with Section 11.02; provided, however, that if the Company makes any payment of interest
(including Additional Interest, if any) or Extension Fees or Additional Extension Fees, if any, on,
or principal of, any Note following the reinstatement of its obligations, the Company shall be
subrogated to the rights of the Noteholders to receive such payment from the money held by the
Trustee or Paying Agent.

ARTICLE 12

Immunity of Incorporators,
Stockholders, Officers and Directors

     Section 12.01. Indenture and Notes Solely Corporate Obligations. No recourse for the
payment of the principal of, or accrued and unpaid interest (including Additional Interest, if any)
or Extension Fees or Additional Extension Fees, if any, on, any Note, or for any claim based
thereon or otherwise in respect thereof, and no recourse under or upon any obligation, covenant or
agreement of the Company in this Indenture or in any supplemental indenture or in any Note, or
because of the creation of any Indebtedness represented thereby, shall be had against any past,
present or future incorporator, stockholder, employee, agent, officer or director or Subsidiary of
the Company as such or of any successor corporation, either directly or through the Company or any
successor corporation, whether by virtue of any constitution, statute or rule of law, or by the
enforcement of any assessment or penalty or otherwise; it being expressly understood that all such
liability is hereby expressly waived and released as a condition of, and as a consideration for,
the execution of this Indenture and the issue of the Notes.

ARTICLE 13

Conversion of Notes

     Section 13.01. Conversion Privilege.

     (a) Subject to the conditions described in clause (i), (ii), and (iii) below, and
upon compliance with the provisions of this Article 13, a Noteholder shall have the right, at such
holder’s option, to convert all or any portion (if the portion to be converted is $1,000 principal
amount or an integral multiple thereof) of such Note at any time prior to the Close of Business on
the scheduled Trading Day immediately preceding November 1, 2013 at a rate (the “Conversion Rate”)
of 47.2813 shares of Common Stock (subject to adjustment by the Company as provided in Section
13.03) per $1,000 principal amount Note (the “Conversion Obligation”) under the circumstances and
during the periods set forth below. On and after November 1, 2013, regardless of the conditions
described in clause (i), (ii) and (iii) below, and upon compliance with the provisions of this
Article 13, a Noteholder shall have the right, at such holder’s option, to convert all or any

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portion (if the portion to be converted is $1,000 principal amount or an integral multiple thereof)
of such Note at the Conversion Rate at any time prior to the Close of Business on the scheduled
Trading Day immediately preceding the Maturity Date.

     (i) The Notes shall be convertible prior to November 1, 2013, during the five
Business Day period after any five consecutive Trading Day period (the “Measurement Period”)
in which the Trading Price per $1,000 principal amount of Notes for each day of such
Measurement Period was less than 98% of the product of the Last Reported Sale Price of the
Common Stock on such date and the Conversion Rate on such date, all as determined by the
Trustee. The Trustee shall have no obligation to determine the Trading Price of the Notes
unless requested by the Company to do so in writing, and the Company shall have no obligation
to make such request unless a Noteholder provides the Company with reasonable evidence that
the Trading Price per $1,000 principal amount of Notes would be less than 98% of the product
of (a) the then-applicable Conversion Rate of the Notes and (b) the Last Reported Sale Price
at such time, at which time the Company shall instruct the Trustee to determine the Trading
Price of the Notes beginning on the next Trading Day and on each successive Trading Day until
the Trading Price per $1,000 principal amount of Notes is greater than or equal to 98% of the
product of (a) the then-applicable Conversion Rate of the Notes and (b) the Last Reported
Sale Price on such date. If the Trading Price condition set forth above has been met, the
Company shall so notify the Noteholders. If, at any time after the Trading Price condition
set forth above has been met, the Trading Price per $1,000 principal amount of Notes is
greater than 98% of the product of (a) the then-applicable Conversion Rate of the Notes and
(b) the Last Reported Sale Price on such date, the Company shall so notify the Noteholders.

     (ii) The Notes shall be convertible prior to the Maturity Date during any calendar
quarter (and only during such calendar quarter) commencing after the calendar quarter ending
March 31, 2007, if the Last Reported Sale Price of the Common Stock for twenty (20) or more
Trading Days in a period of thirty (30) consecutive Trading Days ending on the last Trading
Day df the immediately preceding calendar quarter exceeds 130% of the applicable Conversion
Price in effect on the last Trading Day of the immediately preceding calendar quarter.

     (iii) The Notes shall be convertible prior to the Maturity Date as provided in
Section 13.01(b), Section 13.01(c) and Section 13.01(d).

     (b) In the event that the Company elects to:

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     (i) distribute to all or substantially all holders of the Common Stock rights
entitling them to purchase, for a period expiring within 60 days after the record date for
such distribution, Common Stock at a price less than the Last Reported Sale Price of the
Common Stock for the Trading Day immediately preceding the declaration date of such
distribution; or

     (ii) distribute to all or substantially all holders of Common Stock, assets or debt
securities of the Company or rights to purchase the Company’s securities, which distribution
has a per share value (as determined by the Board of Directors) exceeding 10% of the Last
Reported Sale Price of the Common Stock for the Trading Day immediately preceding the date of
declaration of such distribution,

then, in either case, holders may surrender the Notes for conversion at any time on and after the
date that the Company provides notice to holders referred to in the next sentence until the earlier
of the Close of Business on the Business Day immediately preceding the Ex-Dividend Date for such
distribution or the date the Company announces that such distribution will not take place, even if
the Notes are not otherwise convertible at such time. The Company shall notify holders of any
distribution referred to in either clause (i) or clause (ii) above and of the resulting conversion
right at least twenty (20) Business Days prior to the Ex-Dividend Date for such distribution.
Holders may not exercise this right if such holder participates in the distribution without
conversion.

     (c) If the Company combines or consolidates with or merges with or into another Person or is a
party to a binding share exchange or sells or conveys all or substantially all of its properties
and assets in each case pursuant to which the Common Stock would be converted into cash, securities
and/or other property, then holders may surrender Notes for conversion at any time from and after
the date which is fifteen (15) scheduled Trading Days prior to the anticipated effective date of
the transaction until and including the date that is fifteen (15) scheduled Trading Days after the
effective date of such transaction; provided such transaction does not otherwise constitute a
Fundamental Change to which the provisions of Section 13.01 (d) shall apply. The Company will
notify holders of Notes of the resulting conversion right at least fifteen (15) scheduled Trading
Days prior to the anticipated effective date of such transaction. The Board of Directors shall
determine in good faith the anticipated effective date of the transaction, and such determination
shall be conclusive and binding on the holders and shall be publicly announced by the Company not
later than two Business Days prior to the end of such 15-day period.

     (d) If the Company is a party to any transaction or event that constitutes a Fundamental
Change, a holder may surrender Notes for conversion at any time from and after the date which is
fifteen (15) scheduled Trading Days prior to the

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anticipated effective date of such transaction or event until and including the later of the date
which is fifteen (15) scheduled Trading Days after the effective date of such transaction or event
or the related Fundamental Change Repurchase Date. The Company shall give notice in writing to all
record Noteholders and the Trustee of the Fundamental Change no later than fifteen (15) scheduled
Trading Days prior to the anticipated effective date of the Fundamental Change. The Board of
Directors shall determine in good faith the anticipated effective date of the Fundamental Change,
and such determination shall be conclusive and binding on the holders and shall be publicly
announced by the Company not later than two Business Days prior to the end of such 15-day period.

     (e) (i) If a Noteholder elects to convert Notes at any time on or after the
15th scheduled Trading Day prior to the anticipated effective date of a Fundamental
Change in connection with a Fundamental Change and prior to the Fundamental Change Repurchase Date,
the Conversion Rate applicable to each $1,000 principal amount of Notes so converted shall be
increased by an additional number of shares of Common Stock (the “Additional Shares”) as described
below. Settlement of Notes tendered for conversion to which Additional Shares shall be added to the
Conversion Rate as provided in this subsection shall be settled pursuant to Section 13.02(d) below.
For purposes of this Section 13.01(e), a conversion shall be deemed to be “in connection” with a
Fundamental Change to the extent that such conversion is effected during the time period specified
in Section 13.01(d) (regardless of whether the provisions of clause (a)(i), (a)(ii), (b) or (c) of
this Section 13.01 shall apply to such conversion).

     (ii) The number of Additional Shares by which the Conversion Rate will be increased
shall be determined by reference to the table attached as Schedule A hereto, based on the
date on which the Fundamental Change occurs or becomes effective (the “Effective Date”), and
the Stock Price; provided that if the actual Stock Price is between two Stock Price amounts
in the table or the Effective Date is between two Effective Dates in the table, the number of
Additional Shares shall be determined by a straight-line interpolation between the number of
Additional Shares set forth for the next higher and next lower Stock Price amounts and the
two nearest Effective Dates, as applicable, based on a 365-day year; provided further that if
(1) the Stock Price is greater than $60.00 per share of Common Stock (subject to adjustment
in the same manner as set forth in Section 13.03), no Additional Shares will be added to the
Conversion Rate, and (2) the Stock Price is less than $18.00 per share (subject to adjustment
in the same manner as set forth in Section 13.03), no Additional Shares will be added to the Conversion Rate. Notwithstanding the foregoing, in no event will the number of additional
shares of Common Stock issuable upon conversion in connection with a Fundamental Change
exceed 8.2743 per $1,000 principal amount of Notes (subject to adjustment in the same manner
as set forth in Section 13.03).

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     (iii) The Stock Prices set forth in the first row of the table in Schedule A hereto
shall be adjusted by the Company as of any date on which the Conversion Rate of the Notes is
adjusted. The adjusted Stock Prices shall equal the Stock Prices applicable immediately prior
to such adjustment, multiplied by a fraction, the numerator of which is the Conversion Rate
in effect immediately prior to the adjustment giving rise to the Stock Price adjustment and
the denominator of which is the Conversion Rate as so adjusted. The number of Additional
Shares within the table shall be adjusted in the same manner as the Conversion Rate as set
forth in Section 13.03 (other than by operation of an adjustment to the Conversion Rate by
adding Additional Shares).

     Section 13.02. Conversion Procedure.

     (a) Subject to Section 13.02(b), the Company will satisfy the Conversion Obligation
with respect to each $1,000 principal amount of Notes tendered for conversion in cash and shares of
fully paid Common Stock, if applicable, by delivering, on the third Trading Day immediately
following the last day of the related Observation Period, cash and shares of Common Stock, if any,
equal to the sum of the Daily Settlement Amounts for each of the 20 Trading Days during the related
Observation Period; provided that the Company will deliver cash in lieu of fractional shares of
Common Stock as set forth pursuant to clause (k) below. The Daily Settlement Amounts shall be
determined by the Company promptly following the last day of the Observation Period.

     (b) Notwithstanding Section 13.02(a), the Company shall satisfy the Conversion Obligation with
respect to each $1,000 principal amount of Notes tendered for conversion to which Additional Shares
shall be added to the Conversion Rate on the later to occur of (1) the Effective Date and (2) the
third Trading Day immediately following the last day of the applicable Observation Period.

     (c) Before any holder of a Note shall be entitled to convert the same as set forth above, such
holder shall (1) in the case of a Global Note, comply with the procedures of the Depositary in
effect at that time and, if required, pay funds equal to interest payable on the next Interest
Payment Date to which such holder is not entitled as set forth in Section 13.02(i) and, if
required, pay all taxes or duties, if any, and (2) in the case of a Note issued in certificated
form, (A) complete and manually sign and deliver an irrevocable written notice to the Conversion
Agent in the form on the reverse of such certificated Note, (or a
facsimile thereof) (a “Notice of
Conversion”) at the office of the Conversion Agent and shall state in writing therein the principal
amount of Notes to be converted and the name or names (with addresses) in which such holder wishes
the certificate or certificates for any shares of Common Stock, if any, to be delivered upon
settlement of the Conversion Obligation to be registered, (B)

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surrender such Notes, duly endorsed to the Company or in blank (and accompanied by appropriate
endorsement and transfer documents), at the office of the Conversion Agent, (C) if required, pay
funds equal to interest payable on the next Interest Payment Date to which such holder is not
entitled as set forth in Section 13.02(i), and (D) if required, pay all taxes or duties, if any. A
Note shall be deemed to have been converted immediately prior to the Close of Business on the date
(the “Conversion Date”) that the holder has complied with the requirements set forth in this
Section 13.02(c).

     No Notice of Conversion with respect to any Notes may be tendered by a holder thereof if such
holder has also tendered a Fundamental Change Repurchase Notice and not validly withdrawn such
Fundamental Change Repurchase Notice in accordance with the applicable provisions of Section 14.01,
as the case may be.

     If more than one Note shall be surrendered for conversion at one time by the same holder, the
Conversion Obligation with respect to such Notes, if any, that shall be payable upon conversion
shall be computed on the basis of the aggregate principal amount of the Notes (or specified
portions thereof to the extent permitted thereby) so surrendered.

     (d) Delivery of the amounts owing in satisfaction of the Conversion Obligation shall be made
by the Company in no event later than the date specified in Section 13.02(a), except to the extent
specified in Section 13.02(b). The Company shall make such delivery by paying the cash amount owed
to the Conversion Agent or to the holder of the Note surrendered for conversion, or such holder’s
nominee or nominees, and by issuing, or causing to be issued, and delivering to the Conversion
Agent or to such holder, or such holder’s nominee or nominees, certificates or a book-entry
transfer through the Depositary for the number of full shares of Common Stock, if any, to which
such holder shall be entitled as part of such Conversion Obligation (together with any cash in lieu
of fractional shares).

     (e) In case any Note shall be surrendered for partial conversion, the Company shall execute
and the Trustee shall authenticate and deliver to or upon the written order of the holder of the
Note so surrendered, without charge to such holder, a new Note or Notes in authorized denominations
in an aggregate principal amount equal to the unconverted portion of the surrendered Notes.

     (f) If a holder submits a Note for conversion, the Company shall pay all documentary, stamp
and other duties, if any, which may be imposed by the United States or any political subdivision
thereof or taxing authority thereof or therein with respect to the issuance of shares of Common
Stock, if any, upon the conversion. However, the holder shall pay any such tax which is due because
the holder requests any shares of Common Stock to be issued in a name other than the holder’s name.
The Conversion Agent may refuse to deliver the certificates

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representing the shares of Common Stock being issued in a name other than the holder’s name until
the Trustee receives a sum sufficient to pay any tax which will be due because the shares are to be
issued in a name other than the holder’s name. Nothing herein shall preclude any tax withholding
required by law or regulations.

     (g) Except as provided in Section 13.03, no adjustment shall be made for dividends on any
shares issued upon the conversion of any Note as provided in this Article.

     (h) Upon the conversion of an interest in a Global Note, the Trustee, or the Custodian at
the direction of the Trustee, shall make a notation on such Global Note as to the reduction in the
principal amount represented thereby. The Company shall notify the Trustee in writing of any
conversion of Notes effected through any Conversion Agent other than the Trustee.

     (i) Upon conversion, a Noteholder will not receive any separate cash payment for accrued
and unpaid interest (including Additional Interest and Extension Fee, if any) and the Conversion
Rate shall not be adjusted except as set forth below. The Company’s settlement of the Conversion
Obligations as described above shall be deemed to satisfy its obligation to pay the principal
amount of the Note. Upon conversion, accrued and unpaid interest (including Additional Interest, if
any) to, but not including, the Conversion Date shall be deemed forfeited. Notwithstanding the
preceding sentence, if Notes are converted after the Close of Business on a record date, holders of
such Notes as of the Close of Business on the record date will receive the interest (including
Additional Interest, if any) payable on such Notes on the corresponding Interest Payment Date
notwithstanding the conversion. Notes surrendered for conversion during the period from the Close
of Business on any regular record date to 9:00 a.m., New York City time, on the immediately
following Interest Payment Date must be accompanied by payment of an amount equal to the interest
(including Additional Interest, if any) payable on the Notes so converted; provided, however, that
no such payment need be made (i) in connection with a conversion following the last regular record
date preceding the Maturity Date; (ii) if the Company has specified a Fundamental Change Repurchase
Date that is after a record date and on or prior to the corresponding Interest Payment Date; or
(iii) to the extent of any overdue interest existing at the time of conversion with respect to such
Note. Except as described above, no payment or adjustment will be made for accrued interest
(including Additional Interest, if any) on converted Notes.

     (j) The Person in whose name the certificate for any shares of Common Stock issued upon
conversion is registered shall be treated as a stockholder of record on and after the Conversion
Date; provided, however, that no surrender of Notes on any date when the stock transfer books of
the Company shall be closed shall be effective to constitute the Person or Persons entitled to
receive the shares

68

 

of Common Stock upon such conversion as the record holder or holders of such shares of Common Stock
on such date, but such surrender shall be effective to constitute the Person or Persons entitled to
receive such shares of Common Stock as the record holder or holders thereof for all purposes at the
Close of Business on the next succeeding day on which such stock transfer books are open; such
conversion shall be at the Conversion Rate in effect on the date that such Notes shall have been
surrendered for conversion, as if the stock transfer books of the Company had not been closed. Upon
conversion of Notes, such Person shall no longer be a Noteholder.

     (k) No fractional shares of Common Stock shall be issued upon conversion of any Note or
Notes. Instead of any fractional share of Common Stock that would otherwise be issued upon
conversion of any Note or Notes (or specified portions thereof), the Company shall pay a cash
adjustment in respect of such fraction (calculated to the nearest one-100th of a share) in an
amount equal to the same fraction of the Last Reported Sale Price of the Common Stock on the last
day of the applicable Observation Period.

     Section 13.03. Adjustment of Conversion Rate. The Conversion Rate shall be adjusted from time
to time by the Company as follows; except that no adjustment shall be made to the Conversion Rate
if Holders participate, as a result of holding the Notes, in any of the transactions described in
this Section 13.03 without having to convert the Notes:

     (a) In case the Company shall issue shares of Common Stock as a dividend or distribution
on shares of Common Stock or shall effect a share split or combination, the Conversion Rate shall
be adjusted based on the following formula:

	 	 	 	 	 
	CR’=  CR0
x

	  	OS’
 

OS0	 	 

	 	 	 	 	 	 	 
	 	 	where	 	 
	 
	 	 	 	 	 	 
	 
	 	CR0	 	=	 	the Conversion Rate in effect
immediately prior to the Ex-Dividend Date for such dividend or
distribution or the effective date of such share split or combination, as the case may be;
	 
	 	 	 	 	 	 
	 
	 	CR’	 	=	 	the Conversion Rate in effect
immediately on and after the Ex-Dividend Date for such dividend or
distribution or the effective date of such share split or combination, as the case may be;
	 
	 	 	 	 	 	 
	 
	 	 	 	 	 	 

69

 

	 	 	 	 	 	 	 
	 
	 	OS0	 	=	 	the number of shares of Common
Stock outstanding immediately prior to the Ex-Dividend Date for such
dividend or distribution or the effective date of such share split or combination, as the case may be; and
	 
	 	 	 	 	 	 
	 
	 	OS’	 	=	 	the number of shares of Common
Stock outstanding immediately on and after the Ex-Dividend Date for
such dividend or distribution or the effective date of such share split or combination, as the case may be.
	 
	 	 	 	 	 	 
	 
	 	 	 	 	 	 

Such adjustment shall become effective immediately after 9:00 a.m., New York City time, on the
Business Day following the record date fixed for such determination in the case of a dividend or
distribution or following the effective date of such share split or combination. If any dividend or
distribution of the type described in this Section 13.03(a) is declared but not so paid or made, or
the outstanding shares of Common Stock are not split or combined, as the case may be, the
Conversion Rate shall be immediately readjusted, effective as of the date the Board of Directors
determines not to pay such dividend or distribution, or split or combine the outstanding shares of
Common Stock, as the case may be, to the Conversion Rate that would then be in effect if such
dividend, distribution, split or combination had not been declared.

     (b) In case the Company shall issue to all or substantially all holders of its
outstanding shares of Common Stock rights or warrants entitling them (for a period expiring within
sixty (60) calendar days after the issuance thereof) to subscribe for or purchase shares of Common
Stock at a price per share less than the Last Reported Sale Price of the Common Stock on the
Trading Day immediately preceding the date of announcement of such issuance, the Conversion Rate
shall be adjusted based on the following formula:

	 	 	 	 	 
	CR’= CR0 x 

	 	OS0 + X
 

OS0 + Y	 	 

	 	 	 	 	 	 	 
	 	 	where	 	 
	 
	 	 	 	 	 	 
	 
	 	CR0	 	=	 	the Conversion Rate in effect
immediately prior to the Ex-Dividend Date for such event;
	 
	 	 	 	 	 	 
	 
	 	CR’	 	=	 	the Conversion Rate in effect
immediately on and after the Ex-Dividend Date for such event;
	 
	 	 	 	 	 	 
	 
	 	OS0	 	=	 	the number of shares of Common
Stock outstanding immediately prior to the Ex-Dividend Date for such event;
	 
	 	 	 	 	 	 

70

 

	 	 	 	 	 	 	 
	 
	 	X	 	=	 	the total number of shares of
Common Stock issuable pursuant to such rights or warrants; and
	 
	 	 	 	 	 	 
	 
	 	Y	 	=	 	the number of shares of Common
Stock equal to the aggregate price payable to exercise or convert
such rights or warrants divided by the average of the Last Reported
Sale Prices of Common Stock over the ten consecutive Trading Day
period ending on the Business Day immediately preceding the Ex-Dividend Date relating to such distribution.

Such adjustment shall be successively made whenever any such rights or warrants are issued and
shall become effective immediately after 9:00 a.m., New York City time, on the Business Day
following the record date fixed for such determination. If such rights or warrants are not so
issued, the Conversion Rate shall be immediately readjusted to be the Conversion Rate that would
then be in effect if such record date for such distribution had not been fixed. To the extent that
shares of Common Stock are not delivered after the expiration of such rights or warrants, the
Conversion Rate shall be immediately readjusted to the Conversion Rate that would then be in effect
had the adjustments made upon the issuance of such rights or warrants been made on the basis of
delivery of only the number of shares of Common Stock actually delivered.

     In determining whether any rights or warrants entitle the holders to subscribe for or purchase
shares of Common Stock at less than such Last Reported Sale Price, and in determining the aggregate
offering price of such shares of Common Stock, there shall be taken into account any consideration
received by the Company for such rights or warrants and any amount payable on exercise or
conversion thereof, the value of such consideration, if other than cash, to be determined by the
Board of Directors.

     (c) In case the Company shall, by dividend or otherwise, distribute to all or
substantially all holders of its Common Stock shares of any class of Capital Stock of the Company
(other than Common Stock as covered by Section 13.03 (a)), evidences of its Indebtedness or other
assets or property of the Company (including securities, but excluding dividends or distributions
and rights or warrants covered by Section 13.03(b), Section 13.03(d) or Section 13.03(e) and
distributions described below in this paragraph (c) with respect to Spin-Offs) (any of such shares
of Capital Stock, Indebtedness, or other asset or property hereinafter in this Section 13.03(c)
called the “Distributed Property”), then, in each such case the Conversion Rate shall be adjusted
based on the following formula:

	 	 	 	 	 
	CR’=
CR0 x 

	 	SP0
 

SP0 –
FMV
	 	 

71

 

	 	 	 	 	 	 	 
	 	 	where	 	 
	 
	 	 	 	 	 	 
	 
	 	CR0	 	=	 	the Conversion Rate in effect
immediately prior to the Ex-Dividend Date for such distribution;
	 
	 	 	 	 	 	 
	 
	 	CR’	 	=	 	the Conversion Rate in effect
immediately on and after the Ex-Dividend Date for such distribution;
	 
	 	 	 	 	 	 
	 
	 	SP0	 	=	 	the average of the Last Reported
Sale Prices of the Common Stock over the ten consecutive Trading Day
period ending on the Business Day immediately preceding the Ex-Dividend Date relating to such distribution; and
	 
	 	 	 	 	 	 
	 
	 	FMV	 	=	 	the fair market value (as
determined by the Board of Directors) of the Distributed Property
distributed with respect to each outstanding share of Common Stock on the Ex-Dividend Date relating to such distribution.
	 
	 	 	 	 	 	

Such adjustment shall become effective immediately prior to 9:00 a.m., New York City time, on the
Business Day following the record date fixed for such distribution; provided that if the then fair
market value (as so determined) of the portion of the Distributed Property so distributed
applicable to one share of Common Stock is equal to or greater than
SP0 as set forth above, in lieu
of the foregoing adjustment, adequate provision shall be made so that each Noteholder shall have
the right to receive, for each $1,000 principal amount of Notes upon conversion, the amount of
Distributed Property such holder would have received had such holder owned a number of shares of
Common Stock equal to the Conversion Rate on the record date. If such dividend or distribution is
not so paid or made, the Conversion Rate shall again be adjusted to be the Conversion Rate that
would then be in effect if such dividend or distribution had not been declared. If the Board of
Directors determines the fair market value of any distribution for purposes of this Section
13.03(c) by reference to the actual or when issued trading market for any securities, it must in
doing so consider the prices in such market over the same period used
in determining SP0 above.

     With respect to an adjustment pursuant to this Section 13.03(c) where there has been a payment
of a dividend or other distribution on the Common Stock in shares of Capital Stock of any class or
series, or similar equity interest, of or relating to a Subsidiary or other business unit (a
“Spin-Off”), the Conversion Rate in effect immediately before the Close of Business on the 10th
Trading Day immediately following, and including, the effective date of the Spin-Off, will be
increased based on the following formula:

	 	 	 	 	 
	CR’=
CR0 x 

	 	FMV0 + MP0
 

MP0
	 	 

72

 

	 	 	 	 	 	 	 
	 	 	where	 	 
	 
	 	 	 	 	 	 
	 
	 	CR0	 	=	 	the Conversion Rate in effect
immediately prior to the Close of Business on the 10th Trading Day
immediately following, and including, the effective date of the Spin-Off;
	 
	 	 	 	 	 	 
	 
	 	CR’	 	=	 	the Conversion Rate in effect
immediately from and after the Close of Business on the 10th Trading
Day immediately following, and including, the effective date of the Spin-Off;
	 
	 	 	 	 	 	 
	 
	 	FMV0	 	=	 	the average of the Last Reported
Sale Prices of the Capital Stock or similar equity interest
distributed to holders of Common Stock applicable to one share of
Common Stock over the first 10 consecutive Trading Day period after, and including, the effective date of the Spin-Off; and
	 
	 	 	 	 	 	 
	 
	 	MP0	 	=	 	the average of the Last Reported
Sale Prices of Common Stock over the first ten consecutive Trading
Day period after, and including, the effective date of the Spin-Off.

Such adjustment shall occur at the Close of Business on the 10th Trading Day from, and including,
the effective date of the Spin-Off; provided that in respect of any conversion within the ten
Trading Days following and including the effective date of any Spin-Off, references within this
paragraph (c) to ten Trading Days shall be deemed replaced with such lesser number of Trading Days
as have elapsed between such Spin-Off and the Conversion Date in determining the applicable
Conversion Rate.

     Rights or warrants distributed by the Company to all holders of Common Stock, entitling the
holders thereof to subscribe for or purchase shares of the Company’s Capital Stock, including
Common Stock (either initially or under certain circumstances), which rights or warrants, until the
occurrence of a specified event or events (“Trigger
Event”): (i) are deemed to be transferred with
such shares of Common Stock; (ii) are not exercisable; and (iii) are also issued in respect of
future issuances of Common Stock, shall be deemed not to have been distributed for purposes of this
Section 13.03 (and no adjustment to the Conversion Rate under this Section 13.03 will be required)
until the occurrence of the earliest Trigger Event, whereupon such rights and warrants shall be
deemed to have been distributed and an appropriate adjustment (if any is required) to the
Conversion Rate shall be made under this Section 13.03(c). If any such right or warrant, including
any such existing rights or warrants distributed prior to the date of this Indenture, are subject
to events, upon the occurrence of which such rights or warrants become exercisable to purchase
different securities, evidences of Indebtedness or other assets, then the date of the occurrence of
any and each such event shall be deemed to be the date of distribution and record date with respect
to

73

 

new rights or warrants with such rights (and a termination or expiration of the existing rights or
warrants without exercise by any of the holders thereof). In addition, in the event of any
distribution (or deemed distribution) of rights or warrants, or any Trigger Event or other event
(of the type described in the preceding sentence) with respect thereto that was counted for
purposes of calculating a distribution amount for which an adjustment to the Conversion Rate under
this Section 13.03 was made, (1) in the case of any such rights or warrants that shall all have
been redeemed or repurchased without exercise by any holders thereof, the Conversion Rate shall be
readjusted upon such final redemption or repurchase to give effect to such distribution or Trigger
Event, as the case may be, as though it were a cash distribution, equal to the per share redemption
or repurchase price received by a holder or holders of Common Stock with respect to such rights or
warrants (assuming such holder had retained such rights or warrants), made to all holders of Common
Stock as of the date of such redemption or repurchase, and (2) in the case of such rights or
warrants that shall have expired or been terminated without exercise by any holders thereof, the
Conversion Rate shall be readjusted as if such rights and warrants had not been issued.

     For purposes of this Section 13.03(c), Section 13.03(a) and Section 13.03(b), any dividend or
distribution to which this Section 13.03(c) is applicable that also includes shares of Common Stock
to which Section 13.03(a) applies or rights or warrants to subscribe for or purchase shares of
Common Stock to which Section 13.03(b) applies, shall be deemed instead to be (1) a dividend or
distribution of the evidences of Indebtedness, assets or shares of capital stock other than such
shares of Common Stock or rights or warrants to which Section 13.03(b) applies (and any Conversion
Rate adjustment required by this Section 13.03(c) with respect to such dividend or distribution
shall then be made) immediately followed by (2) a dividend or distribution of such shares of Common
Stock or such rights or warrants (and any further Conversion Rate adjustment required by Section
13.03(a) and Section 13.03(b) with respect to such dividend or distribution shall then be made),
except (A) the record date of such dividend or distribution shall be substituted as “the record
date” and “the date fixed for such determination” within the meaning of Section 13.03(a) and
Section 13.03(b) and (B) any shares of Common Stock included in such dividend or distribution shall
not be deemed “outstanding immediately prior to such event” within the meaning of Section 13.03(a).

     (d) In case the Company shall pay a dividend or make a distribution consisting
exclusively of cash to all or substantially all holders of its Common Stock (but excluding
distributions covered by Section 13.03(c) or Section 13.03(e)), the Conversion Rate shall be
adjusted based on the following formula:

	 	 	 	 	 
	CR’=
CR0
x

	 	SP0
 

SP0 — C
	 	 

74

 

	 	 	 	 	 	 	 
	 	 	where	 	 
	 
	 	 	 	 	 	 
	 
	 	CR0	 	=	 	the Conversion Rate in effect
immediately prior to the Ex-Dividend Date for such distribution;
	 
	 	 	 	 	 	 
	 
	 	CR’	 	=	 	the Conversion Rate in effect
immediately on and after the Ex-Dividend Date for such distribution;
	 
	 	 	 	 	 	 
	 
	 	SP0	 	=	 	the Last Reported Sale Price of the
Common Stock on the Trading Day immediately preceding the Ex-Dividend Date relating to such distribution; and
	 
	 	 	 	 	 	 
	 
	 	C	 	=	 	the amount in cash per share the
Company distributes to holders of Common Stock.

Such adjustment shall become effective immediately after 9:00 a.m., New York City time, on the
Business Day following the record date fixed for such dividend or distribution; provided that if
the portion of the cash so distributed applicable to one share of Common Stock is equal to or
greater than SP0 as set forth above, in lieu of the foregoing adjustment, adequate provision shall
be made so that each Noteholder shall have the right to receive, for each $1,000 principal amount
upon conversion, the amount of cash such holder would have received had such holder owned a number
of shares of Common Stock equal to the Conversion Rate on the record date. If such dividend or
distribution is not so paid or made, the Conversion Rate shall be immediately readjusted to be the
Conversion Rate that would then be in effect if such dividend or distribution had not been
declared.

     For the avoidance of doubt, for purposes of this Section 13.03(d), in the event of any
reclassification of the Common Stock, as a result of which the Notes become convertible into more
than one class of Common Stock, if an adjustment to the Conversion Rate is required pursuant to
this Section 13.03(d), references in this Section to one share of Common Stock or Last Reported
Sale Price of one share of Common Stock shall be deemed to refer to a unit or to the price of a
unit consisting of the number of shares of each class of Common Stock into which the Notes are then
convertible equal to the numbers of shares of such class issued in respect of one share of Common
Stock in such reclassification. The above provisions of this paragraph shall similarly apply to
successive reclassifications.

     (e) In case the Company or any of its Subsidiaries makes a payment in respect of a tender
offer or exchange offer for all or any portion of the Common Stock, to the extent that the cash and
value of any other consideration included in the payment per share of Common Stock exceeds the Last
Reported Sale Price of the Common Stock on the Trading Day next succeeding the last date on which
tenders or exchanges may be made pursuant to such tender or exchange offer (as

75

 

it may be amended), the Conversion Rate shall be increased based on the following formula:

	 	 	 	 	 
	CR’
= CR0 x

	 	AC + (SP’x OS’)
 

OS0
x SP’
	 	 

	 	 	 	 	 	 	 
	 	 	where	 	 
	 
	 	 	 	 	 	 
	 
	 	CR0	 	=	 	the Conversion Rate in effect on
the date such tender or exchange offer expires;
	 
	 	 	 	 	 	 
	 
	 	CR’	 	=	 	the Conversion Rate in effect on
the day next succeeding the date such tender or exchange offer expires;
	 
	 	 	 	 	 	 
	 
	 	AC	 	=	 	the aggregate value of all cash and
any other consideration (as determined by the Board of Directors)
paid or payable for shares purchased in such tender or exchange offer;
	 
	 	 	 	 	 	 
	 
	 	OS0	 	=	 	the number of shares of Common
Stock outstanding immediately prior to the date such tender or exchange offer expires;
	 
	 	 	 	 	 	 
	 
	 	OS’	 	=	 	the number of shares of Common
Stock outstanding immediately after the date such tender or exchange offer expires; and
	 
	 	 	 	 	 	 
	 
	 	SP’	 	=	 	the Last Reported Sale Price of
Common Stock on the Trading Day next succeeding the date such tender or exchange offer expires,

such adjustment to become effective immediately prior to 9:00 a.m., New York City time, on the day
following the last date on which tenders or exchanges may be made pursuant to such tender or
exchange offer. If the Company is obligated to purchase shares pursuant to any such tender or
exchange offer, but the Company is permanently prevented by applicable law from effecting all or
any such purchases or all or any portion of such purchases are rescinded, the Conversion Rate shall
be immediately readjusted to be the Conversion Rate that would then be in effect if such tender or
exchange offer had not been made or had only been made in respect of the purchases that had been
effected.

     (f) For purposes of this Section 13.03, the term “record date” shall mean, with respect
to any dividend, distribution or other transaction or event in which the holders of Common Stock
have the right to receive any cash, securities, assets or other property or in which the Common
Stock (or other applicable security) is exchanged for or converted into any combination of cash,
securities, assets or other property, the date fixed for determination of stockholders entitled

76

 

to receive such cash, securities, assets or other property (whether such date is fixed by the
Board of Directors or by statute, contract or otherwise).

     (g) In addition to those required by clauses (a), (b), (c), (d), and (e) of this Section
13.03, and to the extent permitted by applicable law and subject to the applicable rules of the
principal U.S. national securities exchange on which our common stock is traded, the Company from
time to time may increase the Conversion Rate by any amount for a period of at least 20 calendar
days if the Board of Directors determines that such increase would be in the Company’s best
interest. In addition, the Company may also (but is not required to) increase the Conversion Rate
to avoid or diminish any income tax to holders of Common Stock or rights to purchase Common Stock
in connection with any dividend or distribution of shares (or rights to acquire shares) or similar
event. Notwithstanding the foregoing, in no event shall the Company increase the Conversion Rate
pursuant to this Section 13.03(g) such that the number of shares of Common Stock required to be
delivered upon conversion of the then-outstanding Notes would exceed 35,460,975 Shares. Whenever
the Conversion Rate is increased pursuant to the preceding sentence, the Company shall mail to the
holder of each Note at his last address appearing on the Note Register provided for in Section 2.06
a notice of the increase at least fifteen (15) days prior to the date the increased Conversion Rate
takes effect, and such notice shall state the increased Conversion Rate and the period during which
it will be in effect.

     (h) All calculations and other determinations under this Article 13 shall be made by the
Company and shall be made to the nearest cent or to the nearest one-ten thousandth (1/10,000) of a
share, as the case may be. No adjustment shall be made for the Company’s issuance of Common Stock
or convertible or exchangeable securities or rights to purchase Common Stock or convertible or
exchangeable securities, other than as provided in this Section 13.03. No adjustment shall be made
to the Conversion Rate unless such adjustment would require a change of at least 1% in the
Conversion Rate then in effect at such time. The Company shall carry forward any adjustments that
are less than 1% of the Conversion Rate and make such carried forward adjustments, regardless of
whether the aggregate adjustment is less than 1 %, upon any subsequent adjustment, but in any case
within one year of the first such adjustment carried forward, upon a Fundamental Change, or upon
maturity. No adjustment to the Conversion Rate shall be made pursuant to Section 13.03(a)(other
than an adjustment to the Conversion Rate for a share combination), Section 13.03(b), Section
13.03(c), Section 13.03(d) and Section 13.03(e) if the application of the applicable adjustment
formula would result in a decrease in the Conversion Rate.

     (i) Whenever the Conversion Rate is adjusted as herein provided, the Company shall
promptly file with the Trustee and any Conversion Agent other than the Trustee an Officers’
Certificate setting forth the Conversion Rate after such adjustment and setting forth a brief
statement of the facts requiring such

77

 

adjustment. The Trustee and Conversion Agent may conclusively rely on the accuracy of the
Conversion Rate adjustment provided by the Company. Unless and until a Responsible Officer of the
Trustee shall have received such Officers’ Certificate, the Trustee shall not be deemed to have
knowledge of any adjustment of the Conversion Rate and may assume without inquiry that the last
Conversion Rate of which it has knowledge is still in effect. Promptly after delivery of such
certificate, the Company shall prepare a notice of such adjustment of the Conversion Rate setting
forth the adjusted Conversion Rate and the date on which each adjustment became effective and shall
mail such notice of such adjustment of the Conversion Rate to the holder of each Note at his last
address appearing on the Note Register provided for in Section 2.06 of this Indenture, within
twenty (20) days after the effective date of such adjustment. Failure to deliver such notice shall
not affect the legality or validity of any such adjustment.

     (j) In any case in which this Section 13.03 provides that an adjustment shall become
effective immediately after (1) a record date for an event, (2) the date fixed for the
determination of stockholders entitled to receive a dividend or distribution or the effective date
of a share split or combination pursuant to Section 13.03(a), (3) a date fixed for the
determination of stockholders entitled to receive rights or warrants pursuant to Section 13.03(b),
or (4) the last date on which tenders or exchanges may be made pursuant to any tender or exchange
offer pursuant to Section 13.03(e) (each an “Adjustment Determination Date”), the Company may elect
to defer until the occurrence of the applicable Adjustment Event (as hereinafter defined) (x)
issuing to the holder of any Note converted after such Adjustment Determination Date and before the
occurrence of such Adjustment Event, the additional cash and, if applicable, shares of Common Stock
or other securities issuable upon such conversion by reason of the adjustment required by such
Adjustment Event over and above the amounts deliverable upon such conversion before giving effect
to such adjustment and (y) paying to such holder any amount in cash in lieu of any fraction
pursuant to Section 13.03. For purposes of this Section 13.03(j), the term “Adjustment Event” shall
mean:

     (i) in any case referred to in clause (1) hereof, the occurrence of such event,

     (ii) in any case referred to in clause (2) hereof, the date any such dividend or
distribution is paid or made,

     (iii) in any case referred to in clause (3) hereof, the date of expiration of
such rights or warrants, and

     (iv) in any case referred to in clause (4) hereof, the date a sale or exchange of
Common Stock pursuant to such tender or exchange offer is consummated and becomes
irrevocable.

78

 

     (k) For purposes of this Section 13.03, the number of shares of Common Stock at any
time outstanding shall not include shares held in the treasury of the Company but shall include
shares issuable in respect of scrip certificates issued in lieu of fractions of shares of
Common Stock.

     (1) For the avoidance of doubt, if a holder converts Notes prior to the effective date of
a Fundamental Change, and the Fundamental Change does not occur, the holder will not be entitled to
an increased Conversion Rate in connection with such conversion.

     (m) Notwithstanding anything in this Article 13 (subject only to the provisions of the
second succeeding sentence), the Conversion Rate shall not exceed 111.8594 shares per $1,000
principal amount of the Notes, equivalent to a Conversion Price of $8.94 per share of Common Stock,
other than as a result of proportional adjustments to the Conversion Rate in the manner set forth
in Section 13.03(a) and Section 13.03(b) (such limitations herein referred to as the “Conversion
Rate Cap”). Other than as a result of such proportional adjustments to the Conversion Rate pursuant
to Section 13.03(a) and Section 13.03(b) (subject only to the provisions of the next succeeding
sentence), in no event will the shares issuable upon conversion of the Notes exceed 20% of the
Common Stock of the Company outstanding before the issuance of the Notes or such other percentage
as may subsequently be required by the NASD rules or any listing standards applicable to the
Company. The Company shall not take any action if, as a result of such action, the adjustment to
the Conversion Rate that would otherwise be made pursuant to the provisions of Section 13.03(c),
Section 13.03(d) and Section 13.03(e) would result in a violation of NASD Rule 4350, as such rule
or successor to such rule may be then in effect and interpreted by the NASD (or any similar rule of
any U.S. national securities exchange which is the principal exchange upon which our common stock
is listed). If such action would not result in a violation of NASD Rule 4350 (or any such similar
rule), then the Conversion Rate Cap shall not apply to such action taken by the Company.

     Section 13.04. Shares to be Fully Paid; Compliance. The Company shall provide, free from
preemptive rights, out of its authorized but unissued shares or shares held in treasury, sufficient
shares of Common Stock to provide for conversion of the Notes from time to time as such Notes are
presented for conversion.

     Section 13.05. Effect of Reclassification, Consolidation, Merger or Sale.

     If any of the following events occur, namely (i) any reclassification or change of the
outstanding shares of Common Stock (other than a change in par value, or from par value to no par
value, or from no par value to par value, or as a result of a split, subdivision or combination),
(ii) any consolidation, merger or combination of the Company with another corporation, partnership,
trust or

79

 

limited liability company, or (iii) any conveyance, transfer, lease or other disposition of all or
substantially all of the property and assets of the Company to any corporation, partnership, trust
or limited liability company, in any case as a result of which holders of Common Stock shall be
entitled to receive cash, securities or other property or assets with respect to or in exchange for
such Common Stock (any such event a “Merger Event”), then:

     (a) the Company or the successor or purchasing corporation, partnership, trust or limited
liability company, as the case may be, shall execute with the Trustee a supplemental indenture
(which shall comply with the Trust Indenture Act as in force at the date of execution of such
supplemental indenture if such supplemental indenture is then required to so comply) permitted
under Section 9.01(a) providing for the conversion and settlement of the Notes as set forth in
this Indenture. Such supplemental indenture shall provide for adjustments which shall be as nearly
equivalent as may be practicable to the adjustments provided for in this Article and the Trustee
may conclusively rely on the determination by the Company of the equivalency of such adjustments.
If, in the case of any Merger Event, the Reference Property includes shares of stock or other
securities and assets of a corporation other than the successor or purchasing corporation,
partnership, trust or limited liability company, as the case may be, in such reclassification,
change, consolidation, merger, combination, conveyance, transfer, lease or other disposition then
such supplemental indenture shall also be executed by such other corporation, partnership, trust or
limited liability company and shall contain such additional provisions to protect the interests of
the holders of the Notes as the Board of Directors shall reasonably consider necessary by reason of
the foregoing, including to the extent required by the Board of Directors and practicable the
provisions providing for the repurchase rights set forth in Article 14 herein.

     In the event the Company shall execute a supplemental indenture pursuant to this Section
13.05, the Company shall promptly file with the Trustee an Officers’ Certificate briefly stating
the reasons therefor, the kind or amount of cash, securities or property or asset that will
constitute the Reference Property after any such Merger Event, any adjustment to be made with
respect thereto and that all conditions precedent have been complied with, and shall promptly mail
notice thereof to all Noteholders.

     (b) Notwithstanding the provisions of Section 13.02(a) and Section 13.02(b), and subject to
the provisions of Section 13.01, at the effective time of such Merger Event, the right to convert
each $1,000 principal amount of Notes will be changed to a right to convert such Note by reference
to the kind and amount of cash, securities or other property or assets that a holder of a number of
shares of Common Stock equal to the Conversion Rate immediately prior to such transaction would
have owned or been entitled to receive (the “Reference Property”) such that from and after the
effective time of such transaction, a

80

 

Noteholder will be entitled thereafter to convert its Notes into cash (up to the aggregate
principal amount thereof) and, in lieu of any shares of Common Stock otherwise deliverable, the
same type (and in the same proportion) of Reference Property, based on the Daily Settlement Amounts
of Reference Property in an amount equal to the applicable Conversion Rate, as described under
Section 13.02(a). For purposes of determining the constitution of Reference Property, the type and
amount of consideration that a holder of Common Stock would have been entitled to in the case of
reclassifications, changes, consolidations, mergers, combinations, conveyances, transfers, leases
or other dispositions of assets that cause the Common Stock to be converted into the right to
receive more than a single type of consideration (determined based in part upon any form of
stockholder election) will be deemed to be the weighted average of the types and amounts of
consideration received by the holders of Common Stock that affirmatively make such an election. The
Company shall not become a party to any such transaction unless its terms are consistent with the
preceding. None of the foregoing provisions shall affect the right of a holder of Notes to convert
its Notes in accordance with the provisions of Article 13 hereof prior to the effective date of
such transaction.

     (c) The Company shall cause notice of the execution of such supplemental indenture to be
mailed to each Noteholder, at his address appearing on the Note Register provided for in this
Indenture, within twenty (20) days after execution thereof. Failure to deliver such notice shall
not affect the legality or validity of such supplemental indenture.

     (d) The above provisions of this Section shall similarly apply to successive Merger
Events.

     Section 13.06. Certain Covenants.

     (a) Before taking any action which would cause an adjustment reducing the Conversion
Price below the then par value, if any, of the shares of Common Stock issuable upon conversion of
the Notes, the Company will take all corporate action which may, in the opinion of its counsel, be
necessary in order that the Company may validly and legally issue shares of such Common Stock at
such adjusted Conversion Price.

     The Company covenants that all shares of Common Stock issued upon conversion of Notes will be
fully paid and non-assessable by the Company and
free from all taxes, liens and changes with respect to the issue thereof.

     (b) The Company covenants that, if any shares of Common Stock to be provided for the purpose
of conversion of Notes hereunder require registration with or approval of any governmental
authority under any federal or state law before such shares may be validly issued upon conversion,
the Company will in

81

 

good faith and as expeditiously as practicable, to the extent then permitted by the
rules and interpretations of the Commission (or any successor thereto), endeavor to secure such
registration or approval, as the case may be.

     (c) The Company further covenants that if at any time the Common Stock shall be listed on
any national securities exchange or automated quotation system the Company will, if permitted and
required by the rules of such exchange or automated quotation system, list and keep listed, so long
as the Common Stock shall be so listed on such exchange or automated quotation system, all Common
Stock issuable upon conversion of the Notes.

     Section 13.07. Responsibility of Trustee. Notwithstanding any provision of this Indenture to
the contrary, the Trustee and any other Conversion Agent shall not at any time be under any duty or
responsibility to any Noteholder to determine the Conversion Rate or whether any facts exist which
may require any adjustment of the Conversion Rate, or with respect to the nature or extent or
calculation of any such adjustment when made, or with respect to the method employed, or herein or
in any supplemental indenture provided to be employed, in making the same. The Trustee and any
other Conversion Agent shall not be accountable with respect to the validity or value (or the kind
or amount) of any shares of Common Stock, or of any securities or property, which may at any time
be issued or delivered upon the conversion of any Note; and the Trustee and any other Conversion
Agent make no representations with respect thereto. Neither the Trustee nor any Conversion Agent
shall be responsible for any failure of the Company to issue, transfer or deliver any shares of
Common Stock or stock certificates or other securities or property or cash upon the surrender of
any Note for the purpose of conversion or to comply with any of the duties, responsibilities or
covenants of the Company contained in this Article.

     Without limiting the generality of the foregoing, neither the Trustee nor any Conversion Agent
shall be under any responsibility to determine the correctness of any provisions contained in any
supplemental indenture entered into pursuant to Section 13.05 relating either to the kind or amount
of shares of stock or securities or property or asset (including cash) receivable by Noteholders
upon the conversion of their Notes after any event referred to in such Section 13.05 or to any
adjustment to be made with respect thereto, but, subject to the provisions of Section 6.01, may
accept as conclusive evidence of the correctness of any such provisions, and shall be protected in
relying upon, the Officers’ Certificate (which the Company shall be obligated to file with the
Trustee prior to the execution of any such supplemental indenture) with respect thereto.

     Section 13.08. Notice to Holders Prior to Certain Actions.

     In case:

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     (a) the Company shall declare a dividend (or any other distribution) on its
Common Stock that would require an adjustment in the Conversion Rate pursuant to Section 13.03; or

     (b) the Company shall authorize the granting to all or substantially all of the holders of its
Common Stock of rights or warrants to subscribe for or purchase any share of any class or any other
rights or warrants, or

     (c) of any reclassification of the Common Stock of the Company (other than a subdivision or
combination of its outstanding Common Stock, or a change in par value, or from par value to no par
value, or from no par value to par value), or of any consolidation or merger to which the Company
is a party and for which approval of any stockholders of the Company is required, or of the sale or
transfer of all or substantially all of the assets of the Company; or

     (d) of the voluntary or involuntary dissolution, liquidation or winding-up of the Company;

the Company shall cause to be filed with the Trustee and to be mailed to each Noteholder at his
address appearing on the Note Register, provided for in Section 2.06 of this Indenture, as promptly
as possible but in any event at least twenty (20) days prior to the applicable date specified in
clause (x) or (y) below, as the case may be, a notice stating (x) the date on which a record is to
be taken for the purpose of such dividend, distribution or rights or warrants, or, if a record is
not to be taken, the date as of which the holders of Common Stock of record to be entitled to such
dividend, distribution or rights are to be determined, or (y) the date on which such
reclassification, consolidation, merger, sale, transfer, dissolution, liquidation or winding-up is
expected to become effective or occur, and the date as of which it is expected that holders of
Common Stock of record shall be entitled to exchange their Common Stock for securities or other
property deliverable upon such reclassification, consolidation, merger, sale, transfer,
dissolution, liquidation or winding-up. Failure to give such notice, or any defect therein, shall
not affect the legality or validity of such dividend, distribution, reclassification,
consolidation, merger, sale, transfer, dissolution, liquidation or winding-up.

     Section 13.09. Stockholder Rights Plans. Upon conversion of the Notes, the holders shall
receive, in addition to any shares of Common Stock issuable upon such conversion, any associated
rights issued under any future stockholder rights plan the Company adopts unless, prior to
conversion, the rights have separated from the Common Stock, expired, terminated or been redeemed
or exchanged in accordance with such rights plan. If the rights have separated from the Common
Stock, the Conversion Rate shall be adjusted at the time of separation as if the Company
distributed to all holders of Common Stock, shares of Capital Stock, evidences of Indebtedness or
assets as described in Section

83

 

13.03(c), subject to readjustment in the event of the expiration, termination or redemption
of such rights.

     Section 13.10.
Exchange in Lieu of Conversion. (a) Notwithstanding anything in this Indenture
to the contrary, when a holder surrenders Notes for conversion, the Company may direct the
Conversion Agent to surrender, on or prior to the commencement of the relevant Observation Period,
such Notes to a financial institution designated by the Company (a “Financial Institution”) for
exchange in lieu of conversion.

     (b) In order to accept any such Notes surrendered for conversion, the Financial Institution
must agree to deliver, in exchange for such Notes, cash and shares of Common Stock, if any, equal
to the consideration due upon conversion as provided in Section 13.02.

     (c) By the Close of Business on the Trading Day immediately preceding the start of the
Observation Period, the Company must notify the holder surrendering Notes for conversion that it
has directed the Financial Institution to make an exchange in lieu of conversion and such Financial
Institution must notify the Conversion Agent of the cash and shares of Common Stock, if any, to be
delivered upon exchange.

     (d) If the Financial Institution accepts any such Notes, it will deliver the appropriate
amount of cash and appropriate number of shares of Common Stock, if any, to the Conversion Agent
and the Conversion Agent will deliver the cash and shares of Common Stock, if any, to the holder.
Any Notes exchanged by such Financial Institution will remain outstanding.

     (e) If such Financial Institution agrees to accept any Notes for exchange but does not timely
deliver the related consideration, or if such Financial Institution does not accept the Notes for
exchange, the Company will, as promptly as practical thereafter, but not later than the third
Trading Day immediately following the last day of the Observation Period, convert the Notes into
cash and shares, if any, of Common Stock, pursuant to Section 13.02.

     In no event will the Company’s designation of a Financial Institution pursuant to this Section
13.10 require such Financial Institution to accept any Notes for exchange. The Company shall not be
obligated to pay any consideration to, or otherwise enter into any agreement or arrangement with, a
Financial Institution for or with respect to such designation pursuant to this Section 13.10.

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ARTICLE 14

Repurchase of Notes at Option
of Holders

     Section 14.01. Repurchase at Option of Holders Upon a Fundamental Change.

     (a) If a Fundamental Change occurs at any time, then each Noteholder shall have
the right, at such holder’s option, to require the Company to repurchase all of such holder’s Notes
or any portion of the principal amount thereof that is equal to $1,000 or an integral multiple of
$1,000, for cash on the date (the “Fundamental Change Repurchase Date”) specified by the Company
that is not less than twenty (20) days and not more than thirty five (35) days after the date of
the Fundamental Change Repurchase Company Notice at a repurchase price equal to 100% of the
principal amount thereof, together with accrued and unpaid interest (including Additional Interest,
if any) and Extension Fees and Additional Extension Fees, if any, thereon to, but excluding, the
Fundamental Change Repurchase Date (unless the Fundamental Change Repurchase Date is between a
regular record date and the corresponding Interest Payment Date) (the “Fundamental Change
Repurchase Price”).

     Repurchases of Notes under this Section 14.01 shall be made, at the option of the holder
thereof, upon:

     (i) delivery to the Trustee (or other Paying Agent appointed by the Company) by a
holder of a duly completed notice (the “Fundamental Change Repurchase Notice”) in the form
set forth on the reverse of the Note prior to the Close of Business on the Fundamental Change
Repurchase Date (the “Fundamental Change Expiration Time”); and

     (ii) delivery or book-entry transfer of the Notes to the Trustee (or other Paying
Agent appointed by the Company) at any time after delivery of the Fundamental Change
Repurchase Notice (together with all necessary endorsements) at the Corporate Trust Office of
the Trustee (or other Paying Agent appointed by the Company) in the Borough of Manhattan,
such delivery being a condition to receipt by the holder of the Fundamental Change Repurchase
Price therefor; provided that such Fundamental Change Repurchase Price shall be so paid
pursuant to this Section 14.01 only if the Note so delivered to the Trustee (or other Paying
Agent appointed by the Company) shall conform in all respects to the description thereof in
the related Fundamental Change Repurchase Notice.

     The Fundamental Change Repurchase Notice shall state:

     (A) if certificated, the certificate numbers of Notes to be delivered for
repurchase;

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     (B) the portion of the principal amount of Notes to be repurchased, which
must be $1,000 or an integral multiple thereof, and

     (C) that the Notes are to be repurchased by the Company pursuant to the
applicable provisions of the Notes and the Indenture.

     Any purchase by the Company contemplated pursuant to the provisions of this Section 14.01
shall be consummated by the delivery of the consideration to be received by the holder promptly
following the later of the Fundamental Change Repurchase Date and the time of the book-entry
transfer or delivery of the Note surrendered for repurchase.

     The Trustee (or other Paying Agent appointed by the Company) shall promptly notify the Company
of the receipt by it of any Fundamental Change Repurchase Notice or written notice of withdrawal
thereof in accordance with the provisions of Section 14.01(c).

     Any Note that is to be repurchased only in part shall be surrendered to the Trustee (with, if
the Company or the Trustee so requires, due endorsement by, or a written instrument of transfer in
form satisfactory to the Company and the Trustee duly executed by the holder thereof or his
attorney duly authorized in writing), and the Company shall execute, and the Trustee shall
authenticate and make available for delivery to the holder of such Note without service charge, a
new Note or Notes, containing identical terms and conditions, each in an authorized denomination in
aggregate principal amount equal to and in exchange for the unrepurchased portion of the principal
amount of the Note so surrendered.

     (b) On or before the tenth day after the date on which any Fundamental Change occurs or
is effective, the Company shall provide to all holders of record of the Notes and the Trustee and
Paying Agent a notice (the “Fundamental Change Repurchase Company Notice”) of the occurrence of
such Fundamental Change and of the repurchase right at the option of the holders arising as a
result thereof. Such mailing shall be by first class mail. Simultaneously with providing such
Fundamental Change Repurchase Company Notice, the Company shall publish a notice containing the
information included therein in a newspaper of general circulation in The City of New York, or
publish the information on the Company’s website or through such other public medium as the Company
may use at such time.

     Each Fundamental Change Repurchase Company Notice shall specify:

     (i) the events
causing the Fundamental Change;

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     (ii) the date of the Fundamental Change;

     (iii) the Fundamental Change Repurchase Date and the last date on which a holder may
exercise the repurchase right;

     (iv) the Fundamental Change Repurchase Price;

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

     (vi) the applicable Conversion Rate and any adjustments to the applicable Conversion
Rate;

     (vii) that the Notes with respect to which a Fundamental Change Repurchase Notice
has been delivered by a holder may be converted only if the holder withdraws the Fundamental
Change Repurchase Notice in accordance with the terms of the indenture;

     (viii) that the holder must exercise the repurchase right before the Fundamental
Change Expiration Time;

     (ix) that the holder shall have the right to withdraw any Notes surrendered prior to
the Fundamental Change Expiration Time, and

     (x) the procedures that holders must follow to require the Company to repurchase
their Notes.

     No failure of the Company to give the foregoing notices and no defect therein shall limit the
Noteholders’ repurchase rights or affect the validity of the proceedings for the repurchase of the
Notes pursuant to this Section 14.01.

     (c) A Fundamental Change Repurchase Notice may be withdrawn by means of a written notice
of withdrawal delivered to the Paying Agent in accordance with the Fundamental Change Repurchase
Company Notice at any time prior to the Close of Business on the Business Day prior to the
Fundamental Change Repurchase Date, specifying:

     (i) if certificated Notes have been issued, the certificate numbers of the
withdrawn Notes,

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

     (iii) the principal amount, if any, of such Note that remains subject to the
original Fundamental Change Repurchase Notice, which

87

 

portion must be in principal amounts of $1,000 or an integral multiple of $1,000;

provided, however, that if the Notes are not in certificated form, the notice must comply with
appropriate procedures of the Depositary.

     (d) On or prior to 11:00 a.m. (local time in The City of New York) on the Business Day
following the Fundamental Change Repurchase Date, the Company will deposit with the Trustee (or
other Paying Agent appointed by the Company or if the Company is acting as its own Paying Agent,
set aside, segregate and hold in trust as provided in Section 5.04) an amount of money or
securities sufficient to pay the Fundamental Change Repurchase Price on all of the Notes to be
repurchased. Subject to receipt of funds and/or Notes by the Trustee (or other Paying Agent
appointed by the Company), payment for Notes surrendered for repurchase (and not withdrawn) prior
to the Fundamental Change Expiration Time will be made promptly after the later of (x) the
Fundamental Change Repurchase Date with respect to such Note (provided the holder has satisfied the
conditions to the payment of the Fundamental Change Repurchase Price in Section 14.01) and (y) the
time of book-entry transfer or the delivery of such Note to the Trustee (or other Paying Agent
appointed by the Company) by the holder thereof in the manner required by Section 14.01 by mailing
checks for the amount payable to the holders of such Notes entitled thereto as they shall appear in
the Note Register, provided, however, that payments to the Depositary shall be made by wire
transfer of immediately available funds to the account of the Depositary or its nominee. The
Trustee shall, promptly after such payment and upon written demand by the Company, return to the
Company any funds in excess of the Fundamental Change Repurchase Price.

     (e) If the Trustee (or other Paying Agent appointed by the Company) holds money or securities
sufficient to repurchase on the Business Day following the Fundamental Change Repurchase Date all
the Notes or portions thereof that are to be purchased as of the Business Day following the
Fundamental Change Repurchase Date, then on and after the Fundamental Change Repurchase Date (i)
such Notes will cease to be outstanding, (ii) interest (including Additional Interest, if any) will
cease to accrue on such Notes, and (iii) all other rights of the holders of such Notes will
terminate, whether or not book-entry transfer of the Notes has been made or the Notes have been
delivered to the Trustee or Paying Agent, other than the right to receive the Fundamental Change
Repurchase Price upon delivery of the Notes.

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ARTICLE 15

Miscellaneous Provisions

     Section 15.01. Provisions Binding on Company’s Successors. All the covenants,
stipulations, promises and agreements of the Company contained in this Indenture shall bind its
successors and assigns whether so expressed or not.

     Section 15.02. Official Acts by Successor Corporation. Any act or proceeding by any provision
of this Indenture authorized or required to be done or performed by the Board of Directors or any
committee thereof or any officer of the Company shall and may be done and performed with like force
and effect by the like board, committee or officer of any Successor Company that shall at the time
be the lawful sole successor of the Company.

     Section 15.03. Addresses for Notices, Etc. Any notice or demand which by any provision of this
Indenture is required or permitted to be given or served by the Trustee or by the Noteholders on
the Company shall be deemed to have been sufficiently given or made for all purposes if given or
served by being deposited postage prepaid by registered or certified mail in a post office letter
box addressed (until another address is filed by the Company with the Trustee) to Cadence Design
Systems, Inc., 2655 Seely Avenue, Building 5, San Jose, California 95134, Attention: General
Counsel. Any notice, direction, request or demand hereunder to or upon the Trustee shall be deemed
to have been sufficiently given or made, for all purposes, if given or served by being deposited
postage prepaid by registered or certified mail in a post office letter box addressed to the
Corporate Trust Office.

     The Trustee, by notice to the Company, may designate additional or different addresses for
subsequent notices or communications.

     Any notice or communication mailed to a Noteholder shall be mailed to him by first class
mail, postage prepaid, at the address of such Noteholder as it appears on the Note Register and
shall be sufficiently given to him if so mailed within the time prescribed.

     Failure to mail a notice or communication to a Noteholder or any defect in it shall not affect
its sufficiency with respect to other Noteholders. If a notice or communication is mailed in the
manner provided above, it is duly given, whether or not the addressee receives it.

     Section 15.04. Governing Law. THIS INDENTURE AND EACH NOTE SHALL BE DEEMED TO BE A CONTRACT
MADE UNDER THE LAWS OF THE STATE OF NEW YORK, AND FOR ALL PURPOSES SHALL BE CONSTRUED IN ACCORDANCE
WITH THE LAWS OF THE STATE OF NEW YORK APPLICABLE TO CONTRACTS ENTERED INTO AND TO BE

89

 

PERFORMED THEREIN (WITHOUT REGARD TO CONFLICT OF LAW PRINCIPLES OTHER THAN SECTIONS 5-1401
AND 5-1402 OF THE NEW YORK GENERAL OBLIGATIONS LAW).

     Section 15.05. Evidence of Compliance with Conditions Precedent; Certificates and Opinions of
Counsel to Trustee. Upon any application or demand by the Company to the Trustee to take any action
under any of the provisions of this Indenture, the Company shall furnish to the Trustee an
Officers’ Certificate stating that all conditions precedent, if any, provided for in this Indenture
relating to the proposed action have been complied with, and an Opinion of Counsel stating that, in
the opinion of such counsel, all such conditions precedent have been complied with.

     Each certificate or opinion provided for by or on behalf of the Company in this Indenture and
delivered to the Trustee with respect to compliance with a condition or covenant provided for in
this Indenture shall include (1) a statement that the person making such certificate or opinion has
read such covenant or condition; (2) a brief statement as to the nature and scope of the
examination or investigation upon which the statement or opinion contained in such certificate or
opinion is based; (3) a statement that, in the opinion of such person, he 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 (4) a statement as to whether or not, in the
opinion of such person, such condition or covenant has been complied with.

     Section 15.06. Legal Holidays. In any case where any Interest Payment Date, Fundamental Change
Repurchase Date, Conversion Date or Maturity Date is not a Business Day, then any action to be
taken on such date need not be taken on such date, but may be taken on the next succeeding Business
Day with the same force and effect as if taken on such date, and no interest (including Additional
Interest, if any) shall accrue for the period from and after such date to the next succeeding
Business Day.

     Section 15.07. No Security Interest Created. Nothing in this Indenture or in the Notes,
expressed or implied, shall be construed to constitute a security interest under the Uniform
Commercial Code or similar legislation, as now or hereafter enacted and in effect, in any
jurisdiction.

     Section 15.08. Benefits of Indenture. Nothing in this Indenture or in the Notes, expressed or
implied, shall give to any person, other than the parties hereto, any Paying Agent, any Conversion
Agent, any authenticating agent, any Note Registrar and any of their successors hereunder, and the
Noteholders, any benefit or any legal or equitable right, remedy or claim under this Indenture.

90

 

     Section 15.09. Table of Contents, Headings, etc. The table of contents and the
titles and headings of the articles and sections of this Indenture have been inserted for
convenience of reference only, are not to be considered a part hereof, and shall in no way modify
or restrict any of the terms or provisions hereof.

     Section 15.10. Authenticating Agent. The Trustee may appoint an authenticating agent which
shall be authorized to act on its behalf and subject to its direction in the authentication and
delivery of Notes in connection with the original issuance thereof and transfers and exchanges of
Notes hereunder, including under Section 2.05, Section 2.06, Section 2.07 and Section 2.08, as
fully to all intents and purposes as though the authenticating agent had been expressly authorized
by this Indenture and those Sections to authenticate and deliver Notes. For all purposes of this
Indenture, the authentication and delivery of Notes by the authenticating agent shall be deemed to
be authentication and delivery of such Notes “by the Trustee” and a certificate of authentication
executed on behalf of the Trustee by an authenticating agent shall be deemed to satisfy any
requirement hereunder or in the Notes for the Trustee’s certificate of authentication. Such
authenticating agent shall at all times be a person eligible to serve as trustee hereunder pursuant
to Section 6.09.

     Any corporation into which any authenticating agent may be merged or converted or with which
it may be consolidated, or any corporation resulting from any merger, consolidation or conversion
to which any authenticating agent shall be a party, or any corporation succeeding to the corporate
trust business of any authenticating agent, shall be the successor of the authenticating agent
hereunder, if such successor corporation is otherwise eligible under this Section, without the
execution or filing of any paper or any further act on the part of the parties hereto or the
authenticating agent or such successor corporation.

     Any authenticating agent may at any time resign by giving written notice of resignation to the
Trustee and to the Company. The Trustee may at any time terminate the agency of any authenticating
agent by giving written notice of termination to such authenticating agent and to the Company. Upon
receiving such a notice of resignation or upon such a termination, or in case at any time any
authenticating agent shall cease to be eligible under this Section, the Trustee shall promptly
appoint a successor authenticating agent (which may be the Trustee), shall give written notice of
such appointment to the Company and shall mail notice of such appointment to all Noteholders as the
names and addresses of such holders appear on the Note Register.

     The Company agrees to pay to the authenticating agent from time to time reasonable
compensation for its services although the Company may terminate the authenticating agent, if it
determines such agent’s fees to be unreasonable.

91

 

     The provisions of Section 6.02, Section 6.03, Section 6.04, Section 7.03 and this
Section 15.10 shall be applicable to any authenticating agent.

     Section 15.11. Execution in Counterparts. This Indenture may be executed in any number of
counterparts, each of which shall be an original, but such counterparts shall together constitute
but one and the same instrument.

     Section 15.12. USA PATRIOT Act. The parties hereto acknowledge that in accordance with
Section 326 of the USA PATRIOT Act (Title III of Pub. L. 107-56 (signed into law October 26, 2001))
(as amended, modified or supplemented from time to time, the “USA PATRIOT Act”), the Trustee, like
all financial institutions and in order to help fight the funding of terrorism and money
laundering, is required to obtain, verify, and record information that identifies each person or
legal entity that establishes a relationship or opens an account with Deutsche Bank Trust Company
Americas. The parties to this Indenture agree that they will provide the Trustee with such
information as it may request in order for the Trustee to satisfy the requirements of the USA
PATRIOT Act.

92

 

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

	 	 	 	 	 
	 	CADENCE DESIGN SYSTEMS, INC.

 	 
	 	By:  	/s/
William Porter
 	 
	 	 	Name:  	William Porter           	 
	 	 	Title:  	Executive Vice President
and Chief Financial Officer 	 
	 
	 	DEUTSCHE BANK TRUST COMPANY AMERICAS

 	 
	 	By:  	/s/ Wanda Camacho
 	 
	 	 	Name:  	Wanda Camacho 	 
	 	 	Title:  	Vice President 	 

	 	 	 	 	 
	 	        /s/ Richard L. Buckwalter
 	 
	 	Richard L. Buckwalter 	 
	 	Vice President 	 
	 

[Signature Page of the Indenture for the 2013 Notes]

 

 

SCHEDULE A

	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	Stock Price
	Effective Date	 	$	 	$	 	$	 	$	 	$	 	$	 	$	 	$	 	$	 	$	 	$	 	$
	 
	 	 	18.00	 	 	 	20.00	 	 	 	22.50	 	 	 	25.00	 	 	 	27.50	 	 	 	30.00	 	 	 	35.00	 	 	 	40.00	 	 	 	45.00	 	 	 	50.00	 	 	 	55.00	 	 	 	60.00	 
	December 15, 2006
	 	 	8.2743	 	 	 	6.4512	 	 	 	4.8932	 	 	 	3.8393	 	 	 	3.1010	 	 	 	2.5661	 	 	 	1.8590	 	 	 	1.4200	 	 	 	1.1222	 	 	 	0.9061	 	 	 	0.7414	 	 	 	0.6115	 
	December 15, 2007
	 	 	8.2743	 	 	 	6.3488	 	 	 	4.7097	 	 	 	3.6253	 	 	 	2.8832	 	 	 	2.3580	 	 	 	1.6844	 	 	 	1.2798	 	 	 	1.0110	 	 	 	0.8179	 	 	 	0.6711	 	 	 	0.5552	 
	December 15, 2008
	 	 	8.2743	 	 	 	6.1312	 	 	 	4.4188	 	 	 	3.3167	 	 	 	2.5849	 	 	 	2.0823	 	 	 	1.4625	 	 	 	1.1055	 	 	 	0.8739	 	 	 	0.7091	 	 	 	0.5840	 	 	 	0.4847	 
	December 15, 2009
	 	 	8.2743	 	 	 	5.8548	 	 	 	4.0555	 	 	 	2.9386	 	 	 	2.2263	 	 	 	1.7571	 	 	 	1.2087	 	 	 	0.9103	 	 	 	0.7221	 	 	 	0.5891	 	 	 	0.4877	 	 	 	0.4066	 
	December 15, 2010
	 	 	8.2743	 	 	 	5.5165	 	 	 	3.6043	 	 	 	2.4758	 	 	 	1.7976	 	 	 	1.3779	 	 	 	0.9253	 	 	 	0.6978	 	 	 	0.5584	 	 	 	0.4596	 	 	 	0.3832	 	 	 	0.3213	 
	December 15, 2011
	 	 	8.2743	 	 	 	5.0599	 	 	 	2.9990	 	 	 	1.8780	 	 	 	1.2696	 	 	 	0.9324	 	 	 	0.6148	 	 	 	0.4716	 	 	 	0.3841	 	 	 	0.3199	 	 	 	0.2690	 	 	 	0.2269	 
	December 15, 2012
	 	 	8.2743	 	 	 	4.3400	 	 	 	2.0716	 	 	 	1.0447	 	 	 	0.6114	 	 	 	0.4290	 	 	 	0.2979	 	 	 	0.2403	 	 	 	0.2000	 	 	 	0.1682	 	 	 	0.1422	 	 	 	0.1205	 
	December 15, 2013
	 	 	8.2743	 	 	 	2.7187	 	 	 	0.0000	 	 	 	0.0000	 	 	 	0.0000	 	 	 	0.0000	 	 	 	0.0000	 	 	 	0.0000	 	 	 	0.0000	 	 	 	0.0000	 	 	 	0.0000	 	 	 	0.0000	 

 

 

EXHIBIT A

[FORM OF FACE OF NOTE]

[INCLUDE IF NOTE IS A RESTRICTED SECURITY — THE NOTE
EVIDENCED HEREBY HAS NOT BEEN REGISTERED UNDER THE UNITED STATES SECURITIES ACT OF 1933, AS
AMENDED (THE “SECURITIES ACT”), OR ANY STATE SECURITIES LAWS AND, ACCORDINGLY, MAY NOT BE OFFERED
OR SOLD EXCEPT AS SET FORTH IN THE FOLLOWING SENTENCE. BY ITS ACQUISITION HEREOF, THE HOLDER (1)
REPRESENTS THAT IT IS A “QUALIFIED INSTITUTIONAL BUYER” (AS DEFINED IN RULE 144A UNDER THE
SECURITIES ACT); (2) AGREES THAT IT WILL NOT, PRIOR TO EXPIRATION OF THE HOLDING PERIOD APPLICABLE
TO SALES OF THIS NOTE UNDER RULE 144(K) UNDER THE SECURITIES ACT (OR ANY SUCCESSOR PROVISION),
RESELL OR OTHERWISE TRANSFER THIS NOTE OR THE COMMON STOCK ISSUABLE UPON CONVERSION OF THIS NOTE
EXCEPT (A) TO CADENCE DESIGN SYSTEMS, INC. OR ANY SUBSIDIARY THEREOF, (B) TO A QUALIFIED
INSTITUTIONAL BUYER IN COMPLIANCE WITH RULE 144A UNDER THE SECURITIES ACT, (C) PURSUANT TO THE
EXEMPTION FROM REGISTRATION PROVIDED BY RULE 144 UNDER THE SECURITIES ACT (IF AVAILABLE) OR (D)
PURSUANT TO A REGISTRATION STATEMENT WHICH HAS BECOME EFFECTIVE UNDER THE SECURITIES ACT (AND WHICH
CONTINUES TO BE EFFECTIVE AT THE TIME OF SUCH TRANSFER); (3) PRIOR TO SUCH TRANSFER (OTHER THAN A
TRANSFER PURSUANT TO CLAUSE 2(D) ABOVE), IT WILL FURNISH TO DEUTSCHE BANK TRUST COMPANY AMERICAS,
AS TRUSTEE (OR A SUCCESSOR TRUSTEE, AS APPLICABLE), SUCH CERTIFICATIONS, LEGAL OPINIONS OR OTHER
INFORMATION AS THE TRUSTEE MAY REASONABLY REQUIRE 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; AND (4) AGREES THAT IT WILL DELIVER TO EACH PERSON TO WHOM THIS NOTE IS
TRANSFERRED A NOTICE SUBSTANTIALLY TO THE EFFECT OF THIS LEGEND. IN CONNECTION WITH ANY TRANSFER OF
THIS NOTE PRIOR TO THE EXPIRATION OF THE HOLDING PERIOD APPLICABLE TO SALES OF THIS NOTE UNDER RULE
144(K) UNDER THE SECURITIES ACT (OR ANY SUCCESSOR PROVISION), THE HOLDER MUST CHECK THE APPROPRIATE
BOX SET FORTH ON THE REVERSE HEREOF RELATING TO THE MANNER OF SUCH TRANSFER AND SUBMIT THIS
CERTIFICATE TO DEUTSCHE BANK TRUST COMPANY AMERICAS, AS TRUSTEE (OR A SUCCESSOR TRUSTEE, AS
APPLICABLE). THIS LEGEND WILL BE REMOVED UPON THE EARLIER

A-1

 

 

OF THE TRANSFER OF THE NOTE EVIDENCED HEREBY PURSUANT TO CLAUSE 2(D) ABOVE OR UPON ANY
TRANSFER OF THIS NOTE UNDER RULE 144 UNDER THE SECURITIES ACT (OR ANY SUCCESSOR PROVISION). THE
INDENTURE CONTAINS A PROVISION REQUIRING THE TRUSTEE TO REFUSE TO REGISTER ANY TRANSFER OF THIS
NOTE IN VIOLATION OF THE FOREGOING RESTRICTION.

[INCLUDE IF NOTE IS A GLOBAL NOTE — THIS NOTE IS A GLOBAL NOTE WITHIN THE MEANING OF THE INDENTURE
HEREINAFTER REFERRED TO AND IS REGISTERED IN THE NAME OF A DEPOSITARY OR A NOMINEE THEREOF. THIS
NOTE MAY NOT BE EXCHANGED IN WHOLE OR IN PART FOR A NOTE REGISTERED, AND NO TRANSFER OF THIS NOTE
IN WHOLE OR IN PART MAY BE REGISTERED, IN THE NAME OF ANY PERSON OTHER THAN SUCH DEPOSITARY OR A
NOMINEE THEREOF, EXCEPT IN THE LIMITED CIRCUMSTANCES DESCRIBED IN THE INDENTURE.

     UNLESS THIS CERTIFICATE IS PRESENTED BY AN AUTHORIZED REPRESENTATIVE OF THE DEPOSITORY TRUST
COMPANY (“DTC”), A NEW YORK CORPORATION, TO THE COMPANY OR ITS AGENT FOR REGISTRATION OF TRANSFER,
EXCHANGE OR PAYMENT, AND ANY CERTIFICATE ISSUED IS REGISTERED IN THE NAME OF CEDE & CO. OR IN SUCH
OTHER NAME AS 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.]

A-2

 

 

CADENCE DESIGN SYSTEMS, INC.

1.500% Convertible Senior Notes due 2013

			
	 	 	 
	No.  1
	 	$250,000,000

CUSIPNo. 127387
AE8

ISIN: US127387 AE81

     Cadence Design Systems, Inc., a corporation duly organized and validly existing under the laws
of the State of Delaware (herein called the “Company,” which term includes any successor
corporation under the Indenture referred to on the reverse hereof), for value received hereby
promises to pay to CEDE & CO., or registered assigns, the principal sum of Two Hundred Fifty
Million Dollars or such other principal amount as shall be set forth on Schedule I hereto on
December 15, 2013.

     This Note shall bear interest at the rate of 1.500% per year from December 19, 2006 or from
the most recent date to which interest had been paid or provided. Interest is payable semi-annually
in arrears on each June 15 and December 15, commencing June 15, 2007, to holders of record at the
Close of Business on the preceding June 1 and December 1, respectively. Interest payable on each
Interest Payment Date shall equal the amount of interest accrued from and including the immediately
preceding Interest Payment Date (or from and including December 19, 2006 if no interest has been
paid hereon) to but excluding such Interest Payment Date.

     Payment of the principal of and interest (including Additional Interest, if any) accrued on
this Note shall be made at the office or agency off the Company maintained for that purpose in the
Borough of Manhattan, The City of New York, or, at the option of the holder of this Note, at the
Corporate Trust Office, in such lawful money of the United States of America as at the time of
payment shall be legal tender for the payment of public and private debts; provided, however,
interest may be paid by check mailed to such holder’s address as it appears in the Note Register;
provided, further, however, that, with respect to any Noteholder with an aggregate principal amount
in excess of $1,000,000, at the application of such holder in writing to the Company, interest on
such holder’s Notes shall be paid by wire transfer in immediately available funds to such holder’s
account in the United States supplied by such holder from time to time to the Trustee and Paying
Agent (if different from the Trustee) not later than the applicable record date; provided that any
payment to the Depositary or its nominee shall be paid by wire transfer in immediately available
funds in accordance with the wire transfer instruction supplied by the Depositary or its nominee
from time to time to the Trustee and Paying Agent (if different from Trustee).

A-3

 

 

     Reference is made to the further provisions of this Note set forth on the reverse
hereof, including, without limitation, provisions giving the holder of this Note the right to
convert this Note into cash and Common Stock, if any, of the Company on the terms and subject to
the limitations referred to on the reverse hereof and as more fully specified in the Indenture.
Such further provisions shall for all purposes have the same effect as though fully set forth at
this place.

     This Note shall be deemed to be a contract made under the laws of the State of New York, and
for all purposes shall be construed in accordance with the laws of the State of New York applicable
to contracts entered into and to be performed therein.

     This Note shall not be valid or become obligatory for any purpose until (a) this Note shall
have been signed in the name and on behalf of the Company by the manual or facsimile signature of
any officer of the Company authorized to do so under the Indenture and (b) the certificate of
authentication hereon shall have been manually signed by the Trustee or a duly authorized
authenticating agent under the Indenture.

[Remainder of page intentionally left blank]

A-4

 

 

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

	 	 	 	 	 
	 	CADENCE DESIGN SYSTEMS, INC. 

 	 
	 	By:  	 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 
	 
	 	 	 
	 	By:  	
 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 
	 

TRUSTEE’S CERTIFICATE OF

AUTHENTICATION

DEUTSCHE BANK TRUST COMPANY

AMERICAS,

as Trustee, certifies that this is one of the

Notes described in the within-named

Indenture.

	 	 	 	 	 
	 	 	 
	By:  	 	 
	 	 	Name:  	 	 
	 	 	Authorized Officer: 	 
	 

A-5

 

 

[FORM OF REVERSE OF NOTE]

CADENCE DESIGN SYSTEMS, INC.

1.500% Convertible Senior Notes due 2013

     This Note is one of a duly authorized issue of Notes of the Company, designated as its 1.500%
Convertible Senior Notes due 2013 (herein called the “Notes”), issued under and pursuant to an
Indenture dated as of December 19, 2006 (herein called the “Indenture”), between the Company and
Deutsche Bank Trust Company Americas (herein called the “Trustee”), to which Indenture and all
indentures supplemental thereto reference is hereby made for a description of the rights,
limitations of rights, obligations, duties and immunities thereunder of the Trustee, the Company
and the holders of the Notes. Additional Notes may be issued in an unlimited aggregate principal
amount, subject to certain conditions specified in the Indenture.

     [INCLUDE IF NOTE IS A GLOBAL NOTE — In the event of a deposit or withdrawal of an interest in
this Note, including an exchange, transfer, repurchase or conversion of this Note in part only, the
Trustee, as custodian of the Depositary, shall make an adjustment on its records to reflect such
deposit or withdrawal in accordance with the rules and procedures of the Depositary.]

     [INCLUDE IF NOTE IS A RESTRICTED SECURITY — Subject to certain limitations in the Indenture,
at any time when the Company is not subject to Section 13 or 15(d) of the United States Securities
Exchange Act of 1934, as amended, upon the request of a Holder of a Restricted Security, the
Company will promptly furnish or cause to be furnished Rule 144A Information (as defined below) to
such Holder of Restricted Securities, or to a prospective purchaser of any such Note designated by
any such Holder, to the extent required to permit compliance by any such Holder with Rule 144A
under the Securities Act of 1933, as amended (the “Securities Act”). “Rule 144A Information” shall
be such information as is specified pursuant to Rule 144A(d)(4) under the Securities Act (or any
successor provision thereto).]

     In case an Event of Default, as defined in the Indenture, shall have occurred and be
continuing, the principal of, and accrued and unpaid interest (including Additional Interest, if
any) and Extension Fees and Additional Extension Fees, if any, on, all Notes, may be declared, and
upon said declaration shall become, due and payable, in the manner, with the effect and subject to
the conditions provided in the Indenture.

     Subject to the terms and conditions of the Indenture, the Company will make all payments and
deliveries in respect of the Fundamental Change Repurchase Price and the principal amount on the
Maturity Date, as the case may be, to the holder who surrenders a Note to a Paying Agent to collect
such

A-6

 

payments in respect of the Note. The Company will pay cash amounts in money of the United States
that at the time of payment is legal tender for payment of public and private debts.

     The Indenture contains provisions permitting the Company and the Trustee in certain
circumstances, without the consent of the holders of the Notes, and in other circumstances, with
the consent of the holders of not less than a majority in aggregate principal amount of the Notes
at the time outstanding, evidenced as in the Indenture provided, to execute supplemental indentures
adding any provisions to or changing in any manner or eliminating any of the provisions of the
Indenture or of any supplemental indenture or modifying in any manner the rights of the holders of
the Notes; provided, however, that no such supplemental indenture shall make any of the changes set
forth in Section 9.02 of the Indenture, without the consent of each holder of an outstanding Note
affected thereby. It is also provided in the Indenture that, prior to any declaration accelerating
the maturity of the Notes, the holders of a majority in aggregate principal amount of the Notes at
the time outstanding may on behalf of the holders of all of the Notes waive any past default or
Event of Default under the Indenture and its consequences except as provided in the Indenture. Any
such consent or waiver by the holder of this Note (unless revoked as provided in the Indenture)
shall be conclusive and binding upon such holder and upon all future holders and owners of this
Note and any Notes which may be issued in exchange or substitution hereof, irrespective of whether
or not any notation thereof is made upon this Note or such other Notes.

     No reference herein to the Indenture and no provision of this Note or of the Indenture shall
alter or impair the obligation of the Company, which is absolute and unconditional, to pay the
principal of, and accrued and unpaid interest (including Additional Interest, if any) and Extension
Fees and Additional Extension Fees, if any, on, this Note, at the place, at the respective times,
at the rate and in the lawful money herein prescribed.

     The Notes are issuable in registered form without coupons in denominations of $1,000
principal amount and integral multiples thereof. At the office or agency of the Company referred to
on the face hereof, and in the manner and subject to the limitations provided in the Indenture,
without payment of any service charge but with payment of a sum sufficient to cover any tax or
other governmental charge that may be imposed in connection with any registration or exchange of
Notes, Notes may be exchanged for a like aggregate principal amount of Notes of other authorized
denominations.

     The Notes are not subject to redemption through the operation of any sinking fund.

A-7

 

     Upon the occurrence of a Fundamental Change, the holder has the right, at such holder’s
option, to require the Company to repurchase all of such holder’s Notes or any portion thereof (in
principal amounts of $1,000 or integral multiples thereof) on the Fundamental Change Repurchase
Date at a price equal to 100% of the principal amount of the Notes such holder elects to require
the Company to repurchase, together with accrued and unpaid interest (including Additional
Interest, if any) to but excluding the Fundamental Change Repurchase Date and Extension Fees and
Additional Extension Fees, if any. The Company or, at the written request of the Company, the
Trustee shall mail to all holders of record of the Notes a notice of the occurrence of a
Fundamental Change and of the repurchase right arising as a result thereof by the date specified in
the Indenture.

     Subject to the provisions of the Indenture, the holder hereof has the right, at its option, on
and after November 1, 2013, or earlier upon the occurrence of certain conditions specified in the
Indenture and prior to the Close of Business on the Trading Day immediately preceding the Maturity
Date, to convert any Notes or portion thereof which is $1,000 or an integral multiple thereof, into
cash and, if applicable, shares of Common Stock, in each case at the Conversion Rate specified in
the Indenture, as adjusted from time to time as provided in the Indenture, upon surrender of this
Note, together with a Notice of Conversion, a form of which is attached to the Note, as provided in
the Indenture and this Note, to the Company at the office or agency of the Company maintained for
that purpose in the Borough of Manhattan, The City of New York, or at the option of such holder,
the Corporate Trust Office, and, unless the shares issuable upon conversion are to be issued in the
same name as this Note, duly endorsed by, or accompanied by instruments of transfer in form
satisfactory to the Company duly executed by, the holder or by his duly authorized attorney. The
initial Conversion Rate shall be 47.2813 shares for each $1,000 principal amount of Notes. No
fractional shares of Common Stock will be issued upon any conversion, but an adjustment in cash
will be paid to the holder, as provided in the Indenture, in respect of any fraction of a share
which would otherwise be issuable upon the surrender of any Note or Notes for conversion. No
adjustment shall be made for dividends or any shares issued upon conversion of such Note except as
provided in the Indenture.

     Upon due presentment for registration of transfer of this Note at the office or agency of the
Company in the Borough of Manhattan, The City of New York, a new Note or Notes of authorized
denominations for an equal aggregate principal amount will be issued to the transferee in exchange
thereof, subject to the limitations provided in the Indenture, without charge except for any tax,
assessments or other governmental charge imposed in connection therewith.

     The Company, the Trustee, any authenticating agent, any Paying Agent, any Conversion Agent and
any Note Registrar may deem and treat the registered holder hereof as the absolute owner of this
Note (whether or not this Note shall be

A-8

 

overdue and notwithstanding any notation of ownership or other writing hereon), for the
purpose of receiving payment hereof, or on account hereof, for the conversion hereof and for all
other purposes, and neither the Company nor the Trustee nor any other authenticating agent nor any
Paying Agent nor any other Conversion Agent nor any Note Registrar shall be affected by any notice
to the contrary. All payments made to or upon the order of such registered holder shall, to the
extent of the sum or sums paid, satisfy and discharge liability for monies payable on this Note.

     No recourse for the payment of the principal of, or accrued and unpaid interest (including
Additional Interest, if any) or Extension Fees or Additional Extension Fees, if any, on, this Note,
or for any claim based hereon or otherwise in respect hereof, and no recourse under or upon any
obligation, covenant or agreement of the Company in the Indenture or any indenture supplemental
thereto or in any Note, or because of the creation of any Indebtedness represented thereby, shall
be had against any incorporator, stockholder, employee, agent, officer, director or subsidiary, as
such, past, present or future, of the Company or of any successor corporation, either directly or
through the Company or any successor corporation, whether by virtue of any constitution, statute or
rule of law or by the enforcement of any assessment or penalty or otherwise, all such liability
being, by the acceptance hereof and as part of the consideration for the issue hereof, expressly
waived and released.

     Terms used in this Note and defined in the Indenture are used herein as therein defined.

     Customary abbreviations may be used in the name of a Holder or an assignee, such as TEN COM
(=tenants in common), TENANT (=tenants by the entireties), JT TEN (joint tenants with right of
survivorship and not as tenants in common), CUST (=custodian), and U/G/M/A (=Uniform gift to Minors
Act).

A-9

 

[FORM OF CONVERSION NOTICE]

To: CADENCE DESIGN SYSTEMS, INC.

       DEUTSCHE BANK TRUST COMPANY AMERICAS, as Conversion Agent

     The undersigned registered owner of this Note hereby exercises the option to convert this
Note, or the portion hereof (which is $1,000 principal amount or an integral multiple thereof)
below designated, into cash and shares of Common Stock, if any, in accordance with the terms of the
Indenture referred to in this Note, and directs that the cash and shares, if any, issuable and
deliverable upon such conversion, together with any Notes representing any unconverted principal
amount hereof, be issued and delivered to the registered holder hereof unless a different name has
been indicated below. If shares or any portion of this Note not converted are to be issued in the
name of a person other than the undersigned, the undersigned will pay all transfer taxes payable
with respect thereto. Any amount required to be paid to the undersigned on account of interest
accompanies this Note.

Dated:                                        

	 	 	 
	 

	 	 
	 
	 	 
	 

	 	 
	 

	 	Signature(s)
	 
	 	 
	 

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

	 	 
	 

	 	Signature Guarantee

A-10

 

	 	 	 
	For Physical Delivery of Shares:
	 	 
	 
	 	 
	Fill in for registration of shares if to be issued,
and Notes if to be delivered, other than to and in the
name of the registered holder:
	 	 
	 
	 	 
	 

(Name)

	 	 
	 
	 	 
	 

(Street Address)

	 	 
	 
	 	 
	 

(City, State and Zip Code)

	 	 
	Please print name and address
	 	 
	 
	 	 
	For Book-Entry Delivery of Shares:
	 	 
	 
	 	 
	Fill in for registration of shares if to be issued,
and Notes if to be delivered, other than to and in the
name of the registered holder:
	 	 
	 
	 	 
	 

(Name)

	 	 
	 
	 	 
	 

(Street Address)

	 	 
	 
	 	 
	 

(City, State and Zip Code)

	 	 
	Please print name and address
	 	 

	 	 	 
	DTC Participant Name:
	 	 
	 

	 	 
	DTC Participant Number:
	 	 
	 

	 	 
	 
	 	 
	Deliver Notes (if any) via Book-Entry Delivery to:
	 
	 	 
	DTC Participant Name:
	 	 
	 

	 	 
	DTC Participant Number:
	 	 
	 

	 	 

	 	 	 	 	 
	 	 	Principal amount to be converted
	 	 	(if less than all): $ ,000
	 
	 	 	 	 
	 	 	 
	 	 	Social Security or Other Taxpayer
	 

	 	Identification Number:	 	 
	 

	 	 	 	 

A-11

 

[FORM OF FUNDAMENTAL CHANGE REPURCHASE NOTICE]

To: Cadence Design Systems, Inc.

     The undersigned registered owner of this Note hereby acknowledges receipt of a notice from
Cadence Design Systems, Inc. (the “Company”) as to the occurrence of a Fundamental Change with
respect to the Company and requests and instructs the Company to repay the entire principal amount
of this Note, or the portion thereof (which is $1,000 principal amount or an integral multiple
thereof) below designated, in accordance with the terms of the Indenture referred to in this Note,
to the registered holder hereof.

Dated:                                        

	 	 	 
	 

	 	 
	 
	 	 
	 

	 	 
	 

	 	Signature(s)
	 
	 	 
	 

	 	 
	 

	 	Social Security or Other Taxpayer Identification Number

Principal amount to be repaid (if less than
all): $_,000
	 
	 	 
	 

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

 

 

[ASSIGNMENT FORM]

     For value received                   
                     hereby sell(s)
assign(s) and transfer(s) unto                                                             (Please
insert social security or other Taxpayer Identification Number of assignee) the within Note, and
hereby irrevocably constitutes and appoints

                                                            attorney to transfer said Note on
the books of the Company, with full power of substitution in the premises.

     In connection with any transfer of the Note prior to the expiration of the holding period
applicable to sales thereof under Rule 144(k) under the Securities Act (or any successor
provision), the undersigned confirms that such Note is being transferred:

	 	 	 	 	 
	 

	 	o
	 	To Cadence Design Systems, Inc. or a subsidiary thereof; or
	 
	 	 	 	 
	 

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

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

	 	o
	 	Pursuant to a Registration Statement which has become effective
under the Securities Act of 1933, as amended, and which continues to be effective at
the time of transfer;

and unless the Note has been transferred to Cadence Design Systems, Inc. or a subsidiary thereof,
the undersigned confirms that such Note is not being transferred to an “affiliate” of the Company
as defined in Rule 144 under the Securities Act of 1933, as amended.

     Unless one of the boxes is checked, the Trustee will refuse to register any of the Notes
evidenced by this certificate in the name of any person other than the registered holder thereof.

Dated:                                        

	 	 	 
	 

	 	 
	 
	 	 
	 

	 	 
	 

	 	Signature(s)
	 
	 	 
	 

	 	Signature(s) must be guaranteed by an “eligible
guarantor institution” meeting the requirements of the
Note Registrar,

 

 

	 	 	 
	 

	 	which requirements include membership or
participation in the Security Transfer Agent
Medallion Program (“STAMP”) or such other “signature
guarantee program” as may be determined by the Note
Registrar in addition to, or in substitution for,
STAMP, al in accordance with the Securities Exchange
Act of 1934, as amended.
	 
	 	 
	 

	 	 
	 

	 	Signature Guarantee

     NOTICE: The signature on the Conversion Notice, the Option to Elect Redemption Upon a
Fundamental Change, or the Assignment must correspond with the name as written upon the face of the
Note in every particular without alteration or enlargement or any change whatsoever.

 

 

Schedule 1

CADENCE DESIGN SYSTEMS, INC.

1.500% Convertible Senior Notes Due 2013

	 	 	 	 	 	 	 
	No.

	 	1	 	 	 	 
	 

	 	 	 
	 	 	 

	 	 	 	 	 	 	 
	 	 	 	 	Notation Explaining	 	Authorized
	 	 	Principal	 	Principal Amount	 	Signature of Trustee
	Date	 	Amount	 	Recorded	 	or Custodianexv4w05

 

Exhibit 4.05

REGISTRATION RIGHTS AGREEMENT

     This Registration Rights Agreement (the “Agreement”) dated as of December 19, 2006 is made and
entered into by Cadence Design Systems, Inc., a Delaware corporation (the “Company”), Merrill
Lynch, Pierce, Fenner & Smith Incorporated, Morgan Stanley & Co. Incorporated and J.P. Morgan
Securities Inc. (the “Representatives”), acting on behalf of the several initial purchasers named
in Schedule I to the Purchase Agreement (as defined below) (collectively, the “Initial
Purchasers”).

     This Agreement is made pursuant to the Purchase Agreement dated December 14, 2006 among the
Company and the Initial Purchasers (the “Purchase Agreement”), which provides for the sale by the
Company to the Initial Purchasers of $250,000,000 aggregate principal amount of the Company’s
1.375% Convertible Senior Notes Due 2011 (the “2011 Notes”) and $250,000,000 aggregate principal
amount of the Company’s 1.500% Convertible Senior Notes Due 2013 (the “2013 Notes” and, together
with the 2011 Notes, the “Notes” and, together with the shares of Common Stock (as defined below)
into which the Notes are convertible (the “Securities”). In order to induce the Initial Purchasers
to enter into the Purchase Agreement, the Company has agreed to provide to the Initial Purchasers
and their direct and indirect transferees the registration rights set forth in this Agreement. The
execution of this Agreement is a condition to the closing under the Purchase Agreement.

     In consideration of the foregoing, the parties hereto agree as follows:

ARTICLE 1

Definitions

     Section 1.01. Definitions.

     As used in this Agreement, the following capitalized defined terms shall have the
following meanings:

     “1933 Act” shall mean the Securities Act of 1933, as amended.

     “1934 Act”
shall mean the Securities Exchange Act of 1934, as amended.

     “1939 Act” shall
mean the Trust Indenture Act of 1939, as amended.

     “2011 Notes” shall have the
meaning set forth in the preamble.

     “2013 Notes” shall have the meaning set
forth in the preamble.

     “Additional Interest” shall have the meaning set forth
in Section 2.04.

     “Agreement” shall have the meaning set forth in the
preamble.

 

 

     “Automatic Shelf Registration Statement” shall have the meaning set forth in Rule 405
under the 1933 Act.

     “Business Day” shall mean any day that is not a Saturday, Sunday or legal holiday on which
banking institutions in The City of New York are authorized or required by law or executive order
to close.

     “Closing Date” shall have the meaning given to it in the Purchase Agreement.

     “Company” shall have the meaning set forth in the preamble and shall also include the
Company’s successors.

     “Common Stock” shall mean the shares of common stock, $0.01 par value per share, of the
Company and any other shares of Common Stock as may constitute Common Stock for purposes of the
Indentures, including the Underlying Common Stock.

     “Depositary” shall mean The Depository Trust Company, or any other depositary appointed by the
Company, provided, however, that such depositary must have an address in the Borough of Manhattan,
in the City of New York.

     “Deferral Period” shall have the meaning set forth in Section 2.05.

     “Effectiveness Period” shall have the meaning set forth in Section 2.01(b).

     “Final Memorandum” shall mean the final offering memorandum dated December 14, 2006.

     “Free Writing Prospectus” shall have the meaning set forth in Rule 405 of the 1933 Act.

     “Holder” shall mean any Initial Purchaser, for so long as it owns any Registrable Securities,
and each of its successors, assigns and direct and indirect transferees who become owners of
Registrable Securities under the Indentures.

     “Indentures” shall mean the Indenture dated as of December 19, 2006 between the Company and
Deutsche Bank Trust Company Americas, as Trustee (the “2011 Notes Indenture”), together with the
Indenture dated as of December 19, 2006 between the Company and Deutsche Bank Trust Company
Americas, as Trustee (the “2013 Notes Indenture”), pursuant to which the 2011 Notes and the 2013
Notes are being issued.

     “Initial Purchasers” shall have the meaning set forth in the preamble.

     “Issuer Free Writing Prospectus” shall have the meaning set forth in Rule 433 under the 1933
Act.

     “NASD” shall have the meaning set forth in the definition of Registration Expenses.

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     “Notes” shall have the meaning set forth in the preamble.

     “Person” shall mean an individual, partnership (general or limited), corporation, limited
liability company, trust, unincorporated organization or other entity, or a government or agency
or political subdivision thereof.

     “Prospectus” shall mean the prospectus relating to the Securities included in a Shelf
Registration Statement, including any preliminary prospectus, and any such prospectus as amended or
supplemented by any prospectus supplement, including any such prospectus supplement with respect to
the terms of the offering of any portion of the Registrable Securities covered by a Shelf
Registration Statement, and by all other amendments and supplements to a prospectus, including
post-effective amendments, and in each case including all materials incorporated by reference
therein.

     “Purchase Agreement” shall have the meaning set forth in the preamble.

     “Questionnaire” shall have the meaning set forth in Section 2.01(d).

     “Registrable Securities” shall mean the Notes until such Notes have been converted into or
exchanged for the Underlying Common Stock and, at all times subsequent to any such conversion, the
Underlying Common Stock and any securities into or for which such Underlying Common Stock has been
converted or exchanged, and any security issued with respect thereto upon any stock dividend, split
or similar event until, in the case of any such security, (A) the earliest of (i) its effective
registration under the Securities Act and resale in accordance with the Registration Statement
covering it, (ii) expiration of the holding period that would be applicable thereto under Rule
144(k) or (iii) its sale to the public pursuant to Rule 144 under the Securities Act, and (B) as a
result of the event or circumstance described in any of the foregoing clauses (i) through (iii),
the legend with respect to transfer restrictions required under the Indentures is removed or
removable in accordance with the terms of the Indenture or such legend, as the case may be.

     “Registration Default” shall have the meaning set forth in Section 2.04.

     “Registration Expenses” shall mean any and all expenses incident to performance of or
compliance by the Company with this Agreement, including without limitation: (a) all SEC, stock
exchange or National Association of Securities Dealers, Inc. (the“NASD”) registration and filing
fees, including, if applicable, the fees and expenses of any “qualified independent underwriter”
(and its counsel) that is required to be retained by any holder of Registrable Securities in
accordance with the rules and regulations of the NASD, (b) all fees and expenses incurred in
connection with compliance with state securities or blue sky laws and compliance with the rules of
the NASD (including reasonable fees and disbursements of counsel for any underwriters or Holders in
connection with blue sky qualification of any of the Registrable Securities and any filings with
the NASD), (c) all expenses of the Company in preparing or assisting in preparing, word processing,
printing and distributing any Shelf Registration Statement, any Prospectus, any amendments or
supplements thereto, any securities sales

3

 

agreements and other documents relating to the performance of and compliance with this Agreement,
(d) all fees and expenses incurred in connection with the listing, if any, of any of the
Registrable Securities on any securities exchange or exchanges, (e) all rating agency fees, if any,
(f) the fees and disbursements of counsel for the Company and of the independent public accountants
of the Company, including the expenses of any special audits or “comfort” letters required by or
incident to such performance and compliance, (g) the reasonable fees and expenses of the Trustee,
the paying agent, the conversion agent, the securities registrar and any escrow agent or custodian
and (h) any fees and expenses of any special experts retained by the Company in connection with any
Shelf Registration Statement, but excluding any underwriting discounts and commissions and transfer
taxes, if any, relating to the sale or disposition of Registrable Securities by a Holder.

     “Representatives” shall have the meaning set forth in the preamble.

     “SEC” shall mean the Securities and Exchange Commission or any successor agency or government
body performing the functions currently performed by the United States Securities and Exchange
Commission.

     “Securities” shall have the meaning set forth in the preamble.

     “Shelf Registration” shall mean a registration effected pursuant to Section 2.01.

     “Shelf Registration Statement” shall mean a “shelf” registration statement of the Company
pursuant to the provisions of Section 2.01 of this Agreement which covers all of the Registrable
Securities on an appropriate form under Rule 415 under the 1933 Act, or any similar rale that may
be adopted by the SEC, and all amendments and supplements to such registration statement, including
post-effective amendments, in each case including the Prospectus contained therein, all exhibits
thereto and all materials incorporated by reference therein; provided, however, that a registration
statement shall not be deemed a Shelf Registration Statement until such time as it includes a
Prospectus relating to the Securities.

     “Trustee” shall mean the trustee with respect to the Securities under the Indentures.

     “Underlying Common Stock” means the Common Stock into which the Notes are convertible or
issued upon any such conversion.

     “Underwriter” shall have the meaning set forth in Section 4.01(a).

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ARTICLE 2

Registration Under The 1933 Act

     Section 2.01. Shelf Registration.

     (a) The Company shall, at its cost, file with the SEC, and use its reasonable best efforts to
cause to become effective a Shelf Registration Statement relating to the offer and sale of the
Registrable Securities by the Holders that have provided the information pursuant to Section
2.01(d), provided, that such Shelf Registration Statement shall be an Automatic Shelf Registration
Statement, if the Company is then eligible to use an Automatic Shelf Registration Statement. The
Shelf Registration Statement shall be on Form S-3 or another appropriate form permitting
registration of the Registrable Securities for resale by the Holders in accordance with the methods
of distribution elected by the Holders and set forth in the Shelf Registration Statement. The
Company shall use its reasonable best efforts to cause the Shelf Registration Statement to become
effective under the Securities Act as promptly as possible but in any event by the date that is 270
days after the Closing Date.

     (b) The Company shall, at its cost, use its reasonable best efforts, subject to Section 2.05,
to keep the Shelf Registration Statement continuously effective in order to permit the Prospectus
forming a part thereof to be usable by Holders until the earlier of (i) the second anniversary of
the Closing Date and (ii) such time as the Securities cease to be Registrable Securities (the
“Effectiveness Period”).

     (c) If a Shelf Registration Statement covering resales of the Registrable Securities ceases to
be effective for any reason at any time during the Effectiveness Period (other than because all
securities registered thereunder shall have been resold pursuant thereto or shall have otherwise
ceased to be Registrable Securities), the Company shall use its reasonable best efforts to obtain
the prompt withdrawal of any order suspending the effectiveness thereof, and in any event shall
within 45 days of such cessation of effectiveness amend the Shelf Registration Statement in a
manner reasonably expected to obtain the withdrawal of the order suspending the effectiveness
thereof, or file an additional Shelf Registration Statement so that all Registrable Securities
outstanding as of the date of such filing are covered by a Shelf Registration Statement. If a new
Shelf Registration Statement is filed, the Company shall use its reasonable best efforts to cause
the new Shelf Registration Statement to become effective as promptly as is practicable after such
filing and to keep the new Shelf Registration Statement continuously effective until the end of the
Effectiveness Period.

     (d) Notwithstanding any other provision hereof, no Holder of Registrable Securities may
include any of its Registrable Securities in the Shelf Registration Statement pursuant to this
Agreement unless the Holder furnishes to the Company a fully completed notice and questionnaire in
the form attached as Annex A to the Final Memorandum (the “Questionnaire”) and such other
information in writing as the Company may reasonably request in writing for use in connection with
the Shelf Registration Statement or Prospectus included therein and in any application to be filed
with or under state securities laws. At least 30 days prior to the filing of the Shelf Registration
Statement, the Company will provide notice to the Holders of its intention

5

 

to file the Shelf Registration Statement; provided, however, that if the Company elects to
register the offer and sale of Registrable Securities pursuant to a Prospectus to a Shelf
Registration Statement that has already been declared effective, the Company will provide notice to
the Holders of its intention to file the prospectus supplement made available to selling
securityholders at least 30 days prior to such filing. In order to be named as a selling
securityholder in the Shelf Registration Statement or Prospectus at the time of effectiveness of
the Shelf Registration Statement or such Prospectus, as applicable, each Holder must no later than
20 days following notice by the Company of such intention to file such Shelf Registration Statement
or Prospectus, furnish the completed Questionnaire and such other information that the Company may
reasonably request in writing, if any, to the Company in writing and the Company will include the
information from the completed Questionnaire and such other information, if any, in the Shelf
Registration Statement and the Prospectus, as necessary and in a manner, so that upon effectiveness
of the Shelf Registration Statement the Holder will be permitted to deliver the Prospectus to
purchasers of the Holder’s Registrable Securities. From and after the date that the Shelf
Registration Statement becomes effective, upon receipt of a completed Questionnaire and such other
information that the Company may reasonably request in writing, if any, the Company shall as
promptly as practicable file any amendments or supplements to the Shelf Registration Statement
necessary for such Holder to be named as a selling securityholder in the Prospectus contained
therein to permit such Holder to deliver the Prospectus to purchasers of the Holder’s Securities
(subject to the Company’s right to suspend the Shelf Registration Statement as described in Section
2.05 below), provided, however, that the Company shall not be required to file more than one
post-effective amendment to the Shelf Registration Statement in any calendar quarter. Holders that
do not deliver a completed written Questionnaire and such other information, as provided for in
this Section 2.01(d), will not be named as selling securityholders in the Prospectus or to be
entitled to Additional Interest. Each Holder named as a selling securityholder in the Prospectus
agrees to promptly furnish to the Company all information required to be disclosed in order to make
information previously furnished to the Company by the Holder not materially misleading and any
other information regarding such Holder and the distribution of such Holder’s Registrable
Securities as the Company may from time to time reasonably request in writing.

     (e) Each Holder agrees that if such Holder wishes to sell Registrable Securities pursuant to a
Shelf Registration Statement and related Prospectus it will do so only in accordance with Section
2.01(d) and Section 2.05.

     (f) The Company represents and agrees that, unless it obtains the prior consent of a majority
(with Holders of Notes deemed to be the Holders, for purposes of determining such majority, of the
number of shares of Underlying Common Stock into which the Notes are or would be convertible as of
the date on which such consent is requested) of the Registrable Securities that are registered
under the Shelf Registration Statement at such time or the consent of the managing underwriter in
connection with any underwritten offering of Registrable Securities, and each Holder represents and
agrees that, unless it obtains the prior consent of the Company and any such underwriter, it will
not make any offer relating to the Securities that would constitute an Issuer Free Writing
Prospectus, or that would otherwise constitute a “free writing prospectus,” as defined in Rule 405,
required to be filed with the SEC. Nothing in this

6

 

section shall prevent the Company from using an Issuer Free Writing Prospectus relating to
shares of its common stock that are not included in the Securities. The Company represents that any
Issuer Free Writing Prospectus will not include any information that conflicts with the information
contained in the Shelf Registration Statement or the Prospectus and, any Issuer Free Writing
Prospectus, when taken together with the information in the Shelf Registration Statement and the
Prospectus, will not include any untrue statement of a material fact or omit to state any material
fact necessary in order to make the statements therein, in light of the circumstances under which
they were made, not misleading.

     The Company agrees to supplement or amend the Shelf Registration Statement if required by the
rules, regulations or instructions applicable to the registration form used by the Company if
required by the 1933 Act, or to the extent the Company does not reasonably object, as reasonably
requested by the Initial Purchasers with respect to information relating to such Initial Purchaser
or by the Trustee on behalf of the Holders with respect to information relating to such Holder, and
to furnish to the Holders of Registrable Securities copies of any such supplement or amendment
promptly after its being used or filed with the SEC; provided, however, that the Company shall have
no obligation to deliver to Holders of Registrable Securities copies of any amendment consisting
exclusively of a report or other filing made under the 1934 Act that is otherwise publicly
available on the Company’s or the SEC’s website.

     Section 2.02. Expenses. The Company shall pay all Registration Expenses in connection with the
Shelf Registration. Each Holder shall pay all underwriting discounts and commissions and transfer
taxes, if any, relating to the sale or disposition of such Holder’s Registrable Securities pursuant
to the Shelf Registration Statement.

     Section 2.03. Effectiveness. After a Shelf Registration Statement is effective, if the
offering of Registrable Securities pursuant to a Shelf Registration Statement is interfered with by
any stop order, injunction or other order or requirement of the SEC or any other governmental
agency or court, such Shelf Registration Statement will be deemed not to have been effective during
the period of such interference, until the offering of Registrable Securities pursuant to such
Shelf Registration Statement may legally resume.

     Section 2.04. Interest. In the event that (a) a Shelf Registration Statement does not become
effective on or before the 270th calendar day following the Closing Date, (b) after effectiveness,
subject to Section 2.05, the Shelf Registration Statement fails to be effective or usable by the
Holders without being succeeded within one Business Day by a post-effective amendment or a report
filed with the SEC pursuant to the 1934 Act that cures the failure to be effective or usable, or
(c) the Shelf Registration Statement is unusable by the Holders for any reason, and the number of
days for which the Shelf Registration Statement shall not be usable exceeds the Deferral Period
(each such event in (a), (b) and (c) being a “Registration Default”), commencing on (and including)
any date that a Registration Default has begun (which, for the avoidance of doubt, means the 271st
day after the Closing Date in the case of (a) above) and ending on (but excluding) the next date on
which there are no Registration Defaults that have occurred and are continuing, additional interest
(“Additional Interest”) will accrue at a rate per annum of 0.25% of the principal amount of the
Notes then outstanding for the first 90-day period

7

 

from the date of the Registration Default, and thereafter at a rate per annum of 0.5% of the
principal amount of the Notes; provided that, in no event shall Additional Interest accrue at a
rate per annum exceeding 0.5% of the outstanding principal amount of the Notes; provided further
that Additional Interest shall not accrue under clauses (a), (b) and (c) above with respect to any
Holder that (x) does not submit a properly completed Questionnaire, and (y) therefore is not (or
could not be upon filing) named as a selling securityholder in the Shelf Registration Statement.
Upon the cure of all Registration Defaults then continuing, the accrual of Additional Interest will
automatically cease and the interest rate borne by the Notes will revert to the original interest
rate at such time. Additional Interest shall be computed based on the actual number of days elapsed
in each 90-day period in which the Shelf Registration Statement is not effective or is unusable,
subject to Section 2.05. Holders who have converted Securities into Common Stock will not be
entitled to receive any Additional Interest with respect to such Common Stock or the Notes pursuant
to which such Common Stock was issued. Notwithstanding the foregoing, no Additional Interest shall
accrue as to any Note from and after the earlier of (x) the date such Note is no longer a
Registrable Security and (y) expiration of the Effectiveness Period.

     The Trustee shall be entitled, but shall not be obligated, on behalf of the Holders of
Registrable Securities, to seek any available remedy for the enforcement of this Agreement,
including for the payment of any Additional Interest. Notwithstanding the foregoing, the parties
agree that the sole monetary damages payable for a violation of the terms of this Agreement with
respect to which Additional Interest are expressly provided shall be such Additional Interest.
Nothing shall preclude a Holder of Registrable Securities from pursuing or obtaining specific
performance or equitable relief with regard to this Agreement.

     A Registration Default under clause (a) above shall be cured on the date that the Shelf
Registration Statement is filed and has become effective. A Registration Default under clause (b)
or (c) above shall be cured on the date an amended Shelf Registration Statement becomes effective
or the Company otherwise declares the Shelf Registration Statement and the Prospectus useable, as
applicable. The Company will have no liabilities for monetary damages other than the Additional
Interest with respect to any Registration Default.

     The parties agree that the Additional Interest provided for in this Section 2.04 constitutes a
reasonable estimate of the damages that may be incurred by Holders of Registrable Securities and
does not constitute a penalty.

     Section 2.05. Suspension. The Company may suspend the use of any Prospectus, without incurring
or accruing any obligation to pay Additional Interest pursuant to Section 2.04, for a period not to
exceed 45 consecutive calendar days in any 90-day period or an aggregate of 120 calendar days in
any consecutive 12-month period, (each, a “Deferral Period”) if the Company shall have determined
in good faith that, due to the occurrence or existence of any pending corporate development, it is
in the best interests of the Company to suspend such use, and prior to suspending such use the
Company provides the Holders with notice of such suspension, which notice need not specify the
nature of the event giving rise to such suspension. Each Holder shall keep confidential any
communications received by it from the Company regarding the suspension of the use of the
Prospectus, except as required by applicable law.

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ARTICLE 3

Registration Procedures

     Section 3.01. Registration Procedures. In connection with the obligations of the
Company with respect to the Shelf Registration, the Company shall:

     (a) at a reasonable time prior to filing the Shelf Registration Statement, any Prospectus
forming a part thereof, any amendment to the Shelf Registration Statement or amendment or
supplement to such Prospectus (other than amendments and supplements that do nothing more than name
Holders and provide information with respect thereto), furnish to the Representatives and one
special counsel to the Initial Purchasers copies of all such documents proposed to be filed and use
its reasonable best efforts to reflect in each such document when so filed with the SEC such
comments as the Initial Purchasers and such special counsel to the Initial Purchasers reasonably
shall propose within three (3) Business Days of the delivery of such copies to the Initial
Purchasers and counsel to the Initial Purchasers. In addition, if any Holder that has provided the
information required by Section 2.01(d) shall so request in writing, at a reasonable time prior to
filing any such documents, the Company shall furnish to such Holder copies of all such documents
proposed to be filed and use its reasonable best efforts to reflect in each such document when so
filed with the SEC such comments as such Holder reasonably shall propose within three (3) Business
Days of the delivery of such copies to such Holder;

     (b) prepare and file with the SEC such amendments and post-effective amendments to each Shelf
Registration Statement as may be necessary under applicable law to keep the Shelf Registration
Statement effective for the Effectiveness Period, subject to Section 2.05; and cause each
Prospectus to be supplemented by any required prospectus supplement, and as so supplemented to be
filed pursuant to Rule 424 (or any similar provision then in force) under the 1933 Act and use
reasonable best efforts to comply during the Effectiveness Period with the provisions of the 1933
Act, the 1934 Act and the rules and regulations thereunder to enable the disposition of all
Registrable Securities covered by the Shelf Registration Statement in accordance with the intended
method or methods of distribution by the selling Holders thereof;

     (c) (i) notify the Initial Purchasers and each Holder of Registrable Securities of the filing
of a Shelf Registration Statement, any related Prospectus and any amendment or supplement with the
SEC; (ii) during the Effectiveness Period, furnish to each Holder of Registrable Securities that
has provided the information required by Section 2.01(d), to each Initial Purchaser and to each
underwriter of an underwritten offering of Registrable Securities, if any, without charge, as many
copies of each Prospectus, including each preliminary Prospectus, and any amendment or supplement
thereto and such other documents as such Holder or underwriter may reasonably request in writing,
including the related Shelf Registration Statement, each document incorporated by reference therein
and each exhibit thereto; and (iii) subject to Section 2.05 and to any notice by the Company in
accordance with Section 3.01(e) of the existence of any fact of the kind described in Section
3.01(e)(ii), (iii), (iv), (v) and (vi), hereby consent to the use of the Prospectus or any
amendment or supplement thereto by each of the selling Holders of Registrable Securities that has
provided the information required by

9

 

Section 2.01(d) in connection with the offering and sale of the Registrable Securities covered by
such Prospectus or any amendment or supplement thereto in the manner set forth therein;

     (d) use its reasonable best efforts to register or qualify or cooperate with the Holders in
connection with the registration or qualification (or exemption from such registration or
qualification) of the Registrable Securities under all applicable state securities or “blue sky”
laws of such jurisdictions as any Holder of Registrable Securities covered by a Shelf Registration
Statement and each underwriter of an underwritten offering of Registrable Securities shall
reasonably request in writing, and do any and all other acts and things which may be reasonably
necessary or advisable to enable each such Holder and underwriter to consummate the disposition in
each such jurisdiction of such Registrable Securities owned by such Holder; provided, however, that
the Company shall not be required to (i) qualify as a foreign corporation or as a dealer in
securities in any jurisdiction where it would not otherwise be required to qualify but for this
Section 3.01(d), or (ii) take any action which would subject it to general service of process or
taxation in any such jurisdiction where it is not then so subject;

     (e) notify as promptly as reasonably practicable each Holder of Registrable Securities covered
by a Shelf Registration that has provided the information required by Section 2.01(d) and, if
requested by such Holder, confirm such advice in writing promptly (i) when a Shelf Registration
Statement has become effective and when any post-effective amendments thereto become effective,
(ii) of any request, following the effectiveness of the Shelf Registration Statement under the 1933
Act, by the SEC or any other federal or state securities authority for post-effective amendments
and supplements to a Shelf Registration Statement or the related Prospectus or for additional
information, (iii) of the issuance by the SEC or any state securities authority of any stop order
suspending the effectiveness of a Shelf Registration Statement or the initiation of any proceedings
for that purpose, (iv) of the occurrence (but not the nature of or details concerning) of any event
or the discovery of any facts during the Effectiveness Period which makes any statement made in
such Shelf Registration Statement or the related Prospectus untrue in any material respect or which
requires the making of any changes in such Shelf Registration Statement or Prospectus in order to
make the statements therein not misleading, (v) of the receipt by the Company of any notification
with respect to the suspension of the qualification of the Registrable Securities for sale in any
jurisdiction or the initiation or threatening of any proceeding for such purpose and (vi) of any
determination by the Company that a post-effective amendment to such Shelf Registration Statement
would be required by applicable law;

     (f) as promptly as reasonably practicable furnish to the Representatives and one special
counsel to the Initial Purchasers on behalf of the Holders (i) copies of any comment letters
received from the SEC with respect to a Shelf Registration Statement or any documents incorporated
therein and (ii) any other request by the SEC or any state securities authority for amendments or
supplements to a Shelf Registration Statement and Prospectus or for additional information with
respect to the Shelf Registration Statement and Prospectus;

     (g) use its reasonable best efforts to obtain the withdrawal of any order suspending the
effectiveness of a Shelf Registration Statement at the earliest practicable moment or, if any such

10

 

order or suspension is made effective during any Deferral Period, at the earliest practicable
moment after the Deferral Period and provide immediate notice to each Holder of Registrable
Securities that has provided the information required by Section 2.01(d) of such withdrawal;

     (h) upon the occurrence of any event or the discovery of any facts, each as contemplated
by Sections 3.01(e)(ii), (iii), (iv), (v) and (vi), as promptly as practicable after the occurrence
of such an event, use its reasonable best efforts to, as promptly as practicable, prepare and file
a supplement or post-effective amendment to the Shelf Registration Statement or the related
Prospectus or any document incorporated therein by reference or file any other required document so
that, as thereafter delivered to the purchasers of the Registrable Securities, such Prospectus will
not contain at the time of such delivery any untrue statement of a material fact or omit to state a
material fact necessary to make the statements therein, in light of the circumstances under which
they were made, not misleading or will remain so qualified, and, in the case of a post-effective
amendment to a Shelf Registration Statement, use its reasonable best efforts to cause it to be
declared effective as promptly as practicable. At such time as such public disclosure is otherwise
made or the Company determines that such disclosure is not necessary, in each case to correct any
misstatement of a material fact or to include any omitted material fact, the Company agrees
promptly to notify each Holder that has provided the information required by Section 2.01(d) of
such determination and to furnish each Holder such number of copies of the Prospectus as amended or
supplemented, as such Holder may reasonably request;

     (i) enter into such customary agreements and take all other customary and appropriate actions
in order to expedite or facilitate the disposition of such Registrable Securities, including, but
not limited to:

     (i) obtain opinions of counsel to the Company and updates thereof addressed to
each selling Holder and the underwriters, if any, covering the matters set forth in the
opinion of counsel to the Company delivered at the Closing Date;

     (ii) obtain “comfort” letters and updates thereof from the Company’s independent
certified public accountants (and, if necessary, any other independent certified public
accountants of any subsidiary of the Company or of any business acquired by the Company for
which financial statements are, or are required to be, included in the Shelf Registration
Statement) addressed to the underwriters, if any, and use reasonable best efforts to have
such letter addressed to the selling Holders of Registrable Securities (to the extent
consistent with Statement on Auditing Standards No. 72 of the American Institute of
Certified Public Accounts), such letters substantially in the form and covering the matters
covered in the comfort letter delivered on each Closing Date;

     (iii) if an underwriting agreement is entered into, cause the same to set forth
indemnification provisions and procedures substantially equivalent to the indemnification
provisions and procedures set forth in Section 4 with respect to the underwriters and all
other parties to be indemnified pursuant to said Section or, at the request of any

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underwriters, in the form customarily provided to such underwriters in similar types of
transactions; and

     (iv) deliver such documents and certificates as may be reasonably requested and
as are customarily delivered in similar offerings to the Holders and the managing
underwriters, if any.

     The agreements and actions in this Section 3.01(i) shall be required only in connection with
any underwritten offering of Registrable Securities using such Shelf Registration Statement
pursuant to an underwriting or similar agreement as and to the extent required thereunder, and as
reasonably requested by any of the parties thereto; provided, however, that in no event will an
underwritten offering of Registrable Securities be made without the prior written agreement of the
Company;

     (j) if reasonably requested in connection with a disposition of Registrable Securities,
make reasonably available for inspection during normal business hours by representatives of the
Holders of the Registrable Securities, any underwriters participating in any disposition pursuant
to a Shelf Registration Statement and any counsel or accountant retained by any of the foregoing,
all relevant financial and other records, pertinent corporate documents and properties of the
Company reasonably requested by any such persons, and cause the appropriate officers, directors and
designated employees to make reasonably available for inspection during normal business hours all
relevant information reasonably requested by any such representative, underwriter, special counsel
or accountant in connection with a Shelf Registration Statement, and make such representatives of
the Company available for discussion of such documents as shall be reasonably requested by
representatives of the Holders or the Underwriters, in each case as is customary for “due
diligence” investigations; provided that such persons shall first agree with the Company that any
information that is reasonably designated by the Company as confidential at the time of delivery
shall be kept confidential by such persons and shall be used solely for the purposes of exercising
rights under this Agreement and satisfying “due diligence” obligations under the 1933 Act and such
person shall not engage in trading any securities of the Company until such material non-public
information becomes properly publicly available, unless (i) disclosure of such information is
required by court or administrative order or is necessary to respond to inquiries of regulatory
authorities, (ii) disclosure of such information is required by law (including any disclosure
requirements pursuant to federal securities laws in connection with the filing of any Shelf
Registration Statement or the use of any Prospectus referred to in this Agreement upon a customary
opinion of counsel for such persons delivered and reasonably satisfactory to the Company), (iii)
such information becomes generally available to the public other than as a result of a disclosure
or failure to safeguard by any such person, or (iv) such information becomes available to any such
person from a source other than the Company and such source is not bound by a confidentiality
agreement; provided further, that, the foregoing inspection and information gathering shall, to the
greatest extent possible, be coordinated on behalf of all the Holders and the other parties
entitled thereto by special counsel to the Holders.

     The foregoing actions in this Section 3.01(j) shall be required only in connection with any
underwritten offering of Registrable Securities using such Shelf Registration Statement

12

 

pursuant to an underwriting or similar agreement as and to the extent required thereunder, and as
reasonably requested by any of the parties thereto; provided, however, that in no event will an
underwritten offering of Registrable Securities be made without the prior written agreement of the
Company;

     (k) make generally available to its security holders, as soon as reasonably practicable,
earning statements covering at least 12 months (which need not be audited) satisfying the
provisions of Section 11(a) of the 1933 Act and Rule 158 thereunder;

     (1) cooperate and assist in any filings required to be made with the NASD;

     (m) cooperate with each Holder to facilitate the timely preparation and delivery of
certificates representing Registrable Securities sold or to be sold pursuant to a Shelf
Registration Statement, which certificates shall not bear any restrictive legends, unless required
by applicable law, and cause such Registrable Securities to be in such denominations as are
permitted by the Indentures and registered in such names as such Holder may request in writing at
least two (2) Business Days prior to any sale of such Registrable Securities;

     (n) provide a CUSIP number for all Registrable Securities covered by each Shelf
Registration Statement not later than the effective date of such Shelf Registration Statement and
provide the Trustee and the transfer agent for the Common Stock with printed certificates for the
Registrable Securities that are in a form eligible for deposit with the Depository; and

     (o) promptly after (i) the filing of the initial Shelf Registration Statement and (ii) the
effectiveness of the Shelf Registration Statement, announce the same, in each case by release to
Reuters Economic Services and Bloomberg Business News.

     Without limiting the provisions of Section 2.01(d), the Company may (as a condition to such
Holder’s participation in the Shelf Registration) require each Holder of Registrable Securities to
furnish to the Company such information regarding the Holder and the proposed distribution by such
Holder of such Registrable Securities as the Company may from time to time reasonably request in
writing. Each Holder agrees promptly to furnish to the Company in writing all information required
to be disclosed in order to make the information previously furnished to the Company by such Holder
not misleading, any other information regarding such Holder and the distribution of such
Registrable Securities as may be required to be disclosed in the Shelf Registration Statement under
applicable law or pursuant to SEC comments and any information otherwise reasonably required by the
Company to comply with applicable law or regulations.

     Each Holder agrees that, upon receipt of any notice from the Company of a Deferral Period or
the happening of any event or the discovery of any facts, each of the kind described in Section
3.01(e)(ii), (iii), (iv), (v) and (vi), such Holder will forthwith discontinue disposition of
Registrable Securities pursuant to the Prospectus included in the Shelf Registration Statement
until such Holder’s receipt of the copies of the supplemented or amended Prospectus contemplated by
Section 3.01(h) or notice from the Company that the Shelf Registration

13

 

Statement is again effective and no amendment or supplement is needed, and, if so directed by the
Company, such Holder will deliver to the Company (at its expense) all copies in such Holder’s
possession, other than permanent file copies then in such Holder’s possession, of the Prospectus
covering such Registrable Securities current at the time of receipt of such notice.

     If any of the Registrable Securities covered by any Shelf Registration Statement are to be
sold in an underwritten offering, the underwriter or underwriters and representative or
representatives that will manage such offering will be selected by the written consent of the
Holders of at least a majority (with Holders of Notes deemed to be the Holders, for purposes of
determining such majority of the number of shares of Underlying Common Stock into which the Notes
are or would be convertible as of the date on which such consent is required) of the Registrable
Securities to be included in such offering. Any such underwriter or representative shall be
acceptable to the Company. No Holder of Registrable Securities may participate in any underwritten
registration hereunder unless such Holder (a) agrees to sell such Holder’s Registrable Securities
on the basis provided in any underwriting arrangements approved by the persons entitled hereunder
to approve such arrangements and (b) completes and executes all questionnaires, powers of attorney,
indemnities, underwriting agreements and other documents required under the terms of such
underwriting arrangements.

ARTICLE 4

Indemnification; Contribution

     Section 4.01. Indemnification; Contribution.

     (a) The Company agrees to indemnify and hold harmless each Holder (including, without
limitation, each Initial Purchaser) who has provided information to the Company in accordance with
Section 2.01(d), and each Person, if any, who controls any such Initial Purchaser or Holder within
the meaning of Section 15 of the 1933 Act or Section 20 of the 1934 Act from and against any and
all losses, claims, damages and liabilities (including, without limitation, any legal or other
expenses reasonably incurred in connection with defending or investigating any such claim) caused
by any untrue statement or alleged untrue statement of a material fact contained in any Shelf
Registration Statement, any Issuer Free Writing Prospectus or any Prospectus or caused by any
omission or alleged omission to state therein a material fact required to be stated therein or
necessary to make the statements therein not misleading, except insofar as such losses, claims
damages or liabilities are caused by any such untrue statement or omission or alleged untrue
statement or omission based upon information furnished to the Company in writing by such Holder or
Initial Purchaser through the Representatives expressly for use therein.

     (b) Each Holder who has provided information to the Company in accordance with Section 2.01(d)
agrees severally and not jointly to indemnify and hold harmless the Company, and the other selling
Holders (including, without limitation, each Initial Purchaser) who have provided information to
the Company in accordance with Section 2.01(d) and each Person, if any, who controls the Company or
any such other selling Holder within the meaning of Section

14

 

15 of the 1933 Act or Section 20 of the 1934 Act to the same extent as the foregoing indemnity from
the Company to such Holder, such Initial Purchaser, and such other Holders, but only with reference
to information relating to such Holder furnished to the Company in writing by such Holder expressly
for use in the Shelf Registration Statement, any such Issuer Free Writing Prospectus or such
Prospectus.

     (c) In case any proceeding (including any governmental investigation) shall be instituted
involving any person in respect of which indemnity may be sought pursuant to Section 4.01(a) or
(b), such Person (the “indemnified party”) shall promptly notify the Person against whom such
indemnity may be sought (the “indemnifying party”) in writing and the indemnifying party, upon
request of the indemnified party, shall retain counsel reasonably satisfactory to the indemnified
party to represent the indemnified party and any others the indemnifying party may designate in
such proceeding and shall pay the fees and disbursements of such counsel related to such
proceeding. In any such proceeding, any indemnified party shall have the right to retain its own
counsel, but the fees and expenses of such counsel shall be at the expense of such indemnified
party unless (i) the indemnifying party and the indemnified party shall have mutually agreed to the
retention of such counsel or (ii) the named parties to any such proceeding (including any impleaded
parties) include both the indemnifying party and the indemnified party and representation of both
parties by the same counsel would be inappropriate due to actual or potential differing interests
between them. It is understood that the indemnifying party shall not, in connection with any
proceeding or related proceedings in the same jurisdiction, be liable for the fees and expenses of
more than one separate firm (in addition to any local counsel) for all such indemnified parties and
that all such fees and expenses shall be reimbursed as they are incurred. In the case of any such
separate firm for the Initial Purchasers and such control persons of the Initial Purchasers, such
firm shall be designated in writing by the Representatives. In the case of any such separate firm
for the Company and such directors, officers and controlling persons of the Company, such firm
shall be designated in writing by the Company. In the case of any such separate firm for the
Holders indemnified pursuant to Section 4.01(a), such firm shall be designated in writing by the
Holders of a majority (with Holders of Notes deemed to be the Holders, for purposes of determining
such majority, of the number of shares of Underlying Common Stock into which such Notes are or
would be convertible as of the date on which such designation is made) of the Registrable
Securities covered by the Shelf Registration Statement and sold by Holders that are indemnified
parties pursuant to Section 4.01(a). The indemnifying party shall not be liable for any settlement
of any proceeding effected without its written consent, but if settled with such consent or if
there be a final judgment for the plaintiff, the indemnifying party agrees to indemnify the
indemnified party from and against any loss or liability by reason of such settlement or judgment.
Notwithstanding the foregoing sentence, if at any time an indemnified party shall have requested an
indemnifying party to reimburse the indemnified party for fees and expenses of counsel as
contemplated by the second and third sentences of this paragraph, the indemnifying party agrees
that is shall be liable for any such settlement of any proceeding effected without its written
consent if (i) such settlement is entered into more than 30 days after receipt by such indemnifying
party of the aforesaid request and (ii) such indemnifying party shall not have reimbursed the
indemnified party in accordance with such request prior to the date of such settlement. No
indemnifying party shall, without the

15

 

prior written consent of the indemnified party, effect any settlement of any pending or threatened
proceeding in respect of which any indemnified party is or could have been a party and indemnity
could have been sought hereunder by such indemnified party, unless such settlement includes an
unconditional release of such indemnified party from all liability on claims that are the subject
matter of such proceeding and does not include a statement as to or an admission of fault,
culpability or a failure to act, by or on behalf of any indemnified party.

     (d) If the indemnification provided for in Section 4.01(a) or (b) is unavailable to an
indemnified party in respect of any losses, claims, damages or liabilities for which
indemnification is provided therein, then each indemnifying party under such Section, in lieu of
indemnifying such indemnified party thereunder, shall contribute to the amount paid or payable by
such indemnified party as a result of such losses, claims, damages or liabilities (i) in such
proportion as is appropriate to reflect the relative benefits received by the indemnifying party or
parties on the one hand and the indemnified party or parties on the other hand or (ii) if the
allocation provided by clause (i) above is not permitted by applicable law, in such proportion as
is appropriate to reflect not only the relative benefits referred to in clause (i) above but also
the relative fault of the indemnifying party or parties on the one hand and of the indemnified
party or parties on the other hand in connection with the statements or omissions that resulted in
such losses, claims, damages or liabilities, as well as any other relevant equitable
considerations. The relative benefits received by the Company shall be deemed to be equal to the
total net proceeds from the initial placement pursuant to the Purchase Agreement (before deducting
expenses) of the Registrable Securities to which such losses, claims, damages or liabilities
relate. The relative benefits received by any Holder shall be deemed to be equal to the value of
receiving registration rights under this Agreement for the Registrable Securities. The relative
fault of the Holders on the one hand and the Company on the other hand shall be determined by
reference to, among other things, whether the untrue or alleged untrue statement of a material fact
or the omission or alleged omission to state a material fact relates to information supplied by the
Holders or by the Company, and the parties’ relative intent, knowledge, access to information and
opportunity to correct or prevent such statement or omission. The Holders’ respective obligations
to contribute pursuant to this Section 4.01(d) are several in proportion to the respective number
of Registrable Securities they have sold pursuant to a Shelf Registration Statement, and not joint.

     (e) The parties agree that it would not be just and equitable if contribution pursuant to this
Section 4.01 were determined by pro rata allocation or by any other method of allocation which does
not take account of the equitable considerations referred to in Section 4.01(d). The amount paid or
payable by an indemnified party as a result of the losses, claims, damages and liabilities referred
to in Section 4.01(d) shall be deemed to include, subject to the limitations set forth above, any
legal or other expenses reasonably incurred by such indemnified party in connection with
investigating or defending any such action or claim. Notwithstanding the provisions of this Section
4.01(e), no indemnifying party that is a selling Holder shall be required to contribute any amount
in excess of the amount by which the total price at which the Securities sold by it exceeds the
amount of any damages which such indemnifying party has otherwise paid or been required to pay by
reason of such untrue or alleged untrue statement or omission or alleged omission. No Person guilty
of fraudulent misrepresentation (within the meaning of

16

 

Section 11(f) of the 1933 Act) shall be entitled to contribution from any Person who was not
guilty of such fraudulent misrepresentation.

     (f) The indemnity and contribution agreement contained in this Section 4.01, and the
representations and warranties of the Company contained in this Agreement shall remain operative
and in full force and effect regardless of (i) any termination of this Agreement, (ii) any
investigation made by or on behalf of any Holder, any Initial Purchaser or any Person controlling
such Holder or Initial Purchaser or by or on behalf of the Company, its officers or directors or
any other Person controlling the Company and (iii) acceptance of and payment for any of the
Securities.

     (g) The remedies provided for in this Section 4.01 are not exclusive and shall not limit any
rights or remedies which may otherwise be available to an indemnified party at law or in equity,
hereunder, under the Purchase Agreement or otherwise.

ARTICLE 5

Miscellaneous

     Section 5.01. No Inconsistent Agreements. The Company has not entered into and the
Company will not after the date of this Agreement enter into any agreement with respect to its
securities which is inconsistent with the rights granted to the Holders of Registrable Securities
in this Agreement or otherwise conflicts with the provisions hereof. The rights granted to the
Holders hereunder do not for the term of this Agreement conflict with the rights granted to the
holders of the Company’s other issued and outstanding securities under any such agreements.

     Section 5.02.
Amendments and Waivers. (a) The provisions of this Agreement, including the
provisions of this sentence, may not be amended, modified or supplemented, and waivers or consents
to departures from the provisions hereof may not be given unless the Company has obtained the
written consent of a majority (with Holders of Notes deemed to be the Holders, for the purpose of
this Section, of the number of outstanding shares of Underlying Common Stock into which such Notes
are or would be convertible as of the date on which such consent is requested) of the then
outstanding Underlying Common Stock constituting Registrable Securities affected by such amendment,
modification, supplement, waiver or departure. Notwithstanding the foregoing, this Agreement may be
amended by a written agreement between the Company and the Representatives, on behalf of the
Initial Purchasers, without the consent of the Holders of the Registrable Securities, in order to
cure any ambiguity or to correct or supplement any provision contained herein, provided that no
such amendment shall adversely affect the interests of the Holders of Registrable Securities. Each
Holder of Registrable Securities outstanding at the time of any amendment, modification,
supplements, waiver or consent pursuant to this Section 5.02, shall be bound by such amendment,
modification, supplements, waiver or consent, whether or not any notice or writing indicating such
amendment, modification, supplements, waiver or consent is delivered to such Holder;

17

 

     (b) Whenever the consent or approval of Holders of a specified percentage of Registrable
Securities is required hereunder, Registrable Securities held by the Company or its affiliates (as
such term is defined in Rule 405 under the Securities Act) (other than the Initial Purchasers or
subsequent Holders if such subsequent Holders are deemed to be such affiliates solely by reason of
their holdings of such Registrable Securities) shall not be counted in determining whether such
consent or approval was given by the Holders of such required percentage.

     Section 5.03. Notices. All notices and other communications provided for or permitted
hereunder shall be made in writing by hand delivery, registered first-class mail, facsimile, or any
courier guaranteeing overnight delivery (a) if to a Holder, at the most current address given by
such Holder to the Company in a Questionnaire or by means of a notice given in accordance with the
provisions of this Section 5.03, which address initially is the address set forth in the Purchase
Agreement with respect to the Initial Purchasers; and (b) if to the Company, initially at the
Company’s address set forth in the Purchase Agreement, and thereafter at such other address of
which notice is given in accordance with the provisions of this Section 5.03, with a copy to
Gibson, Dunn & Crutcher LLP, One Montgomery Street, 31st floor, San Francisco, CA 94104, Attention:
Stewart McDowell.

     All such notices and communications shall be deemed to have been duly given: at the time
delivered by hand, if personally delivered; two Business Days after being deposited in the mail,
postage prepaid, if mailed; when receipt is acknowledged, if sent by facsimile; and on the next
business day if timely delivered to an overnight courier.

     Notices, demands or other communications to any Holder shall be deemed to have been duly
given if such notice has been duly given to the Trustee under the Indentures, at the address for
the Trustee specified in such Indentures.

     Section 5.04. Successor and Assigns. This Agreement shall inure to the benefit of and be
binding upon the successors, assigns and transferees of each of the parties, including, without
limitation and without the need for an express assignment, subsequent Holders; provided that,
nothing herein shall be deemed to permit any assignment, transfer or other disposition of
Registrable Securities in violation of the terms of the Purchase Agreement or the Indentures. If
any transferee of any Holder shall acquire Registrable Securities, in any manner, whether by
operation of law or otherwise, such Registrable Securities shall be held subject to all of the
terms of this Agreement, and by taking and holding such Registrable Securities such person shall be
conclusively deemed to have agreed to be bound by and to perform all of the terms and provisions of
this Agreement, including the restrictions on resale set forth in this Agreement and, if
applicable, the Purchase Agreement, and such person shall be entitled to receive the benefits
hereof.

     Section 5.05. Third Party Beneficiaries. Each Initial Purchaser (even if such Initial
Purchaser is not a Holder of Registrable Securities) shall be a third party beneficiary to the
agreements made hereunder between the Company, on the one hand, and the Holders, on the other hand,
and shall have the right to enforce such agreements directly to the extent it deems

18

 

such enforcement necessary or advisable to protect its rights or the rights of Holders hereunder.
Each Holder of Registrable Securities shall be a third party beneficiary to the agreements made
hereunder between the Company, on the one hand, and the Initial Purchasers, on the other hand, and
shall have the right to enforce such agreements directly to the extent it deems such enforcement
necessary or advisable to protect its rights hereunder.

     Section 5.06. Specific Enforcement. Without limiting the remedies available to the Initial
Purchasers and the Holders, the Company acknowledges that any failure by the Company to comply with
its obligations under Section 2.01 may result in material irreparable injury to the Initial
Purchasers or the Holders for which there is no adequate remedy at law, that it may not be possible
to measure damages for such injuries precisely and that, in the event of any such failure, any
Initial Purchaser or any Holder may seek such relief as may be required to specifically enforce the
Company’s obligations under Section 2.01.

     Section 5.07. Counterparts. This Agreement may be signed in any number of counterparts, each
of which shall be an original, with the same effect as if the signatures thereto and hereto were
upon the same instrument.

     Section 5.08. Headings. The headings in this Agreement are for convenience of reference
only and shall not limit or otherwise affect the meaning hereof.

     Section 5.09. GOVERNING LAW. THIS AGREEMENT SHALL BE GOVERNED BY AND CONSTRUED IN ACCORDANCE
WITH THE LAW OF THE STATE OF NEW YORK.

     Section 5.10. Severability. In the event that any one or more of the provisions contained
herein, or the application thereof in any circumstance, is held invalid, illegal or unenforceable,
the validity, legality and enforceability of any such provision in every other respect and of the
remaining provisions contained herein shall not be affected or impaired thereby, it being intended
that all of the rights and privileges of the parties shall be enforceable to the fullest extent
permitted by the law.

     Section 5.11. Entire Agreement. This Agreement is intended by the parties as a final
expression of their agreement and intended to be a complete and exclusive statement of the
agreement and understanding of the parties hereto in respect of the subject matter contained
herein. There are no restrictions, promises, warranties or undertakings, other than those set forth
or referred to herein with respect to the registration rights granted by the Company with respect
to the Registrable Securities. This Agreement supersedes all prior agreements and understandings
between the parties with respect to such subject matter.

19

 

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

	 	 	 	 	 
	 	CADENCE SYSTEM DESIGNS, INC.

 	 
	 	By:  	/s/ William Porter
 	 
	 	 	Name:  	William Porter    	 
	 	 	Title:  	Executive Vice President and Chief Financial Officer 	 
	 

 

 

	 	 	 	 	 
	Confirmed and accepted as of the
date first above written:	 	 
	 
	 	 	 	 
	By:

	 	MERRILL LYNCH, PIERCE, FENNER

& SMITH INCORPORATED	 	 
	 
	 	 	 	 
	By:

	 	/s/ Mathew J. Schultz	 	 
	 

	 	 

Name: Mathew J. Schultz
	 	 
	 

	 	Title: Managing Director	 	 
	 
	 	 	 	 
	By:

	 	MORGAN STANLEY & CO. INCORPORATED	 	 
	 
	 	 	 	 
	By:
	 	/s/ David Oakes 	 	 
	 

	 	 

Name: David Oakes
	 	 
	 

	 	Title: Managing Director	 	 
	 
	 	 	 	 
	By:

	 	J.P. MORGAN SECURITIES INC.	 	 
	 
	 	 	 	 
	By:
	 	/s/ David Seamen	 	 
	 

	 	 

Name: David Seamen
	 	 
	 

	 	Title: Managing Director

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