Document:

exv10w2

 

Exhibit 10.2

 

 

CPI HOLDCO, INC.

as Issuer

and

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

as Trustee

INDENTURE

Dated as of February 22, 2005

Floating Rate Senior Notes due 2015

 

 

 

 

CROSS-REFERENCE TABLE

	 	 	 	 	 
	Trust Indenture Act	 	 	 	Indenture
	Section	 	 	 	Section
	310(a)(1)
	 	 	 	7.10
	(a)(2)
	 	 	 	7.10
	(a)(3)
	 	 	 	N.A.
	(a)(4)
	 	 	 	N.A.
	(a)(5)
	 	 	 	7.08; 7.10
	(b)
	 	 	 	7.08; 7.10; 12.02
	(c)
	 	 	 	N.A.
	311(a)
	 	 	 	7.11
	(b)
	 	 	 	7.11
	(c)
	 	 	 	N.A.
	312(a)
	 	 	 	2.05
	(b)
	 	 	 	12.03
	(c)
	 	 	 	12.03
	313(a)
	 	 	 	7.06
	(b)(1)
	 	 	 	7.06
	(b)(2)
	 	 	 	7.06
	(c)
	 	 	 	7.06; 12.02
	(d)
	 	 	 	7.06
	314(a)
	 	 	 	4.06; 4.18; 12.02
	(b)
	 	 	 	N.A.
	(c)(1)
	 	 	 	7.02; 12.04; 12.05
	(c)(2)
	 	 	 	7.02; 12.04; 12.05
	(c)(3)
	 	 	 	N.A.
	(d)
	 	 	 	N.A.
	(e)
	 	 	 	12.05
	(f)
	 	 	 	N.A.
	315(a)
	 	 	 	7.01(b); 7.02(a)
	(b)
	 	 	 	7.05; 12.02
	(c)
	 	 	 	7.01
	(d)
	 	 	 	6.05; 7.01(c)
	(e)
	 	 	 	6.11
	316(a)(last sentence)
	 	 	 	2.09
	(a)(1)(A)
	 	 	 	6.05
	(a)(1)(B)
	 	 	 	6.04
	(a)(2)
	 	 	 	9.02
	(b)
	 	 	 	6.07
	(c)
	 	 	 	9.05
	317(a)(1)
	 	 	 	6.08
	(a)(2)
	 	 	 	6.09
	(b)
	 	 	 	2.04
	318(a)
	 	 	 	12.01
	(c)
	 	 	 	12.01

N.A. means Not Applicable

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

 

 

TABLE OF CONTENTS

	 	 	 	 	 	 	 
	 	 	 	 	Page	 
	ARTICLE ONE
	 
	 	 	 	 	 	 
	DEFINITIONS AND INCORPORATION BY REFERENCE
	 
	 	 	 	 	 	 
	SECTION 1.01.
	 	Definitions	 	 	1	 
	SECTION 1.02.
	 	Other Definitions	 	 	28	 
	SECTION 1.03.
	 	Incorporation by Reference of Trust Indenture Act	 	 	29	 
	SECTION 1.04.
	 	Rules of Construction	 	 	30	 
	 
	 	 	 	 	 	 
	ARTICLE TWO
	 
	 	 	 	 	 	 
	THE NOTES
	 
	 	 	 	 	 	 
	SECTION 2.01.
	 	Form and Dating	 	 	30	 
	SECTION 2.02.
	 	Execution, Authentication and Denomination; Additional Notes; Exchange Notes	 	 	32	 
	SECTION 2.03.
	 	Registrar and Paying Agent	 	 	33	 
	SECTION 2.04.
	 	Paying Agent To Hold Assets in Trust	 	 	33	 
	SECTION 2.05.
	 	Holder Lists	 	 	34	 
	SECTION 2.06.
	 	Transfer and Exchange	 	 	34	 
	SECTION 2.07.
	 	Replacement Notes	 	 	34	 
	SECTION 2.08.
	 	Outstanding Notes	 	 	35	 
	SECTION 2.09.
	 	Treasury Notes	 	 	35	 
	SECTION 2.10.
	 	Temporary Notes	 	 	36	 
	SECTION 2.11.
	 	Cancellation	 	 	36	 
	SECTION 2.12.
	 	Defaulted Interest	 	 	36	 
	SECTION 2.13.
	 	CUSIP and ISIN Numbers	 	 	36	 
	SECTION 2.14.
	 	Deposit of Moneys	 	 	37	 
	SECTION 2.15.
	 	Book-Entry Provisions for Global Notes	 	 	37	 
	SECTION 2.16.
	 	Special Transfer and Exchange Provisions	 	 	38	 
	 
	 	 	 	 	 	 
	ARTICLE THREE
	 
	 	 	 	 	 	 
	REDEMPTION
	 
	 	 	 	 	 	 
	SECTION 3.01.
	 	Notices to Trustee	 	 	42	 
	SECTION 3.02.
	 	Selection of Notes To Be Redeemed	 	 	42	 
	SECTION 3.03.
	 	Notice of Redemption	 	 	43	 
	SECTION 3.04.
	 	Effect of Notice of Redemption	 	 	44	 
	SECTION 3.05.
	 	Deposit of Redemption Price	 	 	44	 
	SECTION 3.06.
	 	Notes Redeemed in Part	 	 	44	 

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	 	 	 	 	Page	 
	ARTICLE FOUR
	 
	 	 	 	 	 	 
	COVENANTS
	 
	 	 	 	 	 	 
	SECTION 4.01.
	 	Payment of Notes	 	 	44	 
	SECTION 4.02.
	 	Maintenance of Office or Agency	 	 	45	 
	SECTION 4.03.
	 	Corporate Existence	 	 	45	 
	SECTION 4.04.
	 	Payment of Taxes	 	 	45	 
	SECTION 4.05.
	 	[Intentionally Omitted]	 	 	46	 
	SECTION 4.06.
	 	Compliance Certificate; Notice of Default	 	 	46	 
	SECTION 4.07.
	 	[Intentionally Omitted]	 	 	46	 
	SECTION 4.08.
	 	Waiver of Stay, Extension or Usury Laws	 	 	46	 
	SECTION 4.09.
	 	Change of Control	 	 	46	 
	SECTION 4.10.
	 	Limitations on Additional Indebtedness	 	 	48	 
	SECTION 4.11.
	 	Limitations on Restricted Payments	 	 	50	 
	SECTION 4.12.
	 	Limitations on Liens	 	 	53	 
	SECTION 4.13.
	 	Limitations on Asset Sales	 	 	53	 
	SECTION 4.14.
	 	Limitations on Transactions with Affiliates	 	 	57	 
	SECTION 4.15.
	 	Limitations on Dividend and Other Restrictions Affecting Restricted Subsidiaries	 	 	59	 
	SECTION 4.16.
	 	Additional Note Guarantees	 	 	60	 
	SECTION 4.17.
	 	[Intentionally Omitted.]	 	 	61	 
	SECTION 4.18.
	 	Reports to Holders	 	 	61	 
	SECTION 4.19.
	 	Limitations on Designation of Unrestricted Subsidiaries	 	 	62	 
	SECTION 4.20.
	 	Limitation on the Issuance or Sale of Equity Interests of Restricted Subsidiaries	 	 	63	 
	SECTION 4.21.
	 	Business Activities	 	 	63	 
	 
	 	 	 	 	 	 
	ARTICLE FIVE
	 
	 	 	 	 	 	 
	SUCCESSOR CORPORATION
	 
	 	 	 	 	 	 
	SECTION 5.01.
	 	Mergers, Consolidations, Etc.	 	 	64	 
	 
	 	 	 	 	 	 
	ARTICLE SIX
	 
	 	 	 	 	 	 
	DEFAULT AND REMEDIES
	 
	 	 	 	 	 	 
	SECTION 6.01.
	 	Events of Default	 	 	65	 
	SECTION 6.02.
	 	Acceleration	 	 	67	 
	SECTION 6.03.
	 	Other Remedies	 	 	67	 
	SECTION 6.04.
	 	Waiver of Past Defaults	 	 	68	 
	SECTION 6.05.
	 	Control by Majority	 	 	68	 
	SECTION 6.06.
	 	Limitation on Suits	 	 	68	 
	SECTION 6.07.
	 	Rights of Holders To Receive Payment	 	 	69	 
	SECTION 6.08.
	 	Collection Suit by Trustee	 	 	69	 

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	 	 	 	 	Page	 
	SECTION 6.09.
	 	Trustee May File Proofs of Claim	 	 	69	 
	SECTION 6.10.
	 	Priorities	 	 	69	 
	SECTION 6.11.
	 	Undertaking for Costs	 	 	70	 
	 
	 	 	 	 	 	 
	ARTICLE SEVEN
	 
	 	 	 	 	 	 
	TRUSTEE
	 
	 	 	 	 	 	 
	SECTION 7.01.
	 	Duties of Trustee	 	 	70	 
	SECTION 7.02.
	 	Rights of Trustee	 	 	71	 
	SECTION 7.03.
	 	Individual Rights of Trustee	 	 	73	 
	SECTION 7.04.
	 	Trustee’s Disclaimer	 	 	73	 
	SECTION 7.05.
	 	Notice of Default	 	 	73	 
	SECTION 7.06.
	 	Reports by Trustee to Holders	 	 	73	 
	SECTION 7.07.
	 	Compensation and Indemnity	 	 	74	 
	SECTION 7.08.
	 	Replacement of Trustee	 	 	75	 
	SECTION 7.09.
	 	Successor Trustee by Merger, Etc.	 	 	76	 
	SECTION 7.10.
	 	Eligibility; Disqualification	 	 	76	 
	SECTION 7.11.
	 	Preferential Collection of Claims Against the Issuer	 	 	76	 
	 
	 	 	 	 	 	 
	ARTICLE EIGHT
	 
	 	 	 	 	 	 
	DISCHARGE OF INDENTURE; DEFEASANCE
	 
	 	 	 	 	 	 
	SECTION 8.01.
	 	Termination of the Issuer’s Obligations	 	 	76	 
	SECTION 8.02.
	 	Legal Defeasance and Covenant Defeasance	 	 	77	 
	SECTION 8.03.
	 	Conditions to Legal Defeasance or Covenant Defeasance	 	 	79	 
	SECTION 8.04.
	 	Application of Trust Money	 	 	80	 
	SECTION 8.05.
	 	Repayment to the Issuer	 	 	80	 
	SECTION 8.06.
	 	Reinstatement	 	 	81	 
	 
	 	 	 	 	 	 
	ARTICLE NINE
	 
	 	 	 	 	 	 
	AMENDMENTS, SUPPLEMENTS AND WAIVERS
	 
	 	 	 	 	 	 
	SECTION 9.01.
	 	Without Consent of Holders	 	 	81	 
	SECTION 9.02.
	 	With Consent of Holders	 	 	82	 
	SECTION 9.03.
	 	[Intentionally Omitted]	 	 	83	 
	SECTION 9.04.
	 	Compliance with the Trust Indenture Act	 	 	83	 
	SECTION 9.05.
	 	Revocation and Effect of Consents	 	 	83	 
	SECTION 9.06.
	 	Notation on or Exchange of Notes	 	 	84	 
	SECTION 9.07.
	 	Trustee To Sign Amendments, Etc	 	 	84	 

-iii-

 

	 	 	 	 	 	 	 
	 	 	 	 	Page	 
	ARTICLE TEN
	 
	[INTENTIONALLY OMITTED]
	 
	 	 	 	 	 	 
	ARTICLE ELEVEN
	 
	 	 	 	 	 	 
	NOTE GUARANTEE
	 
	 	 	 	 	 	 
	SECTION 11.01.
	 	Guarantee	 	 	84	 
	SECTION 11.02.
	 	[Intentionally Omitted.]	 	 	85	 
	SECTION 11.03.
	 	Limitation on Guarantor Liability	 	 	85	 
	SECTION 11.04.
	 	Execution and Delivery of Note Guarantee	 	 	86	 
	SECTION 11.05.
	 	Release of a Guarantor	 	 	86	 
	 
	 	 	 	 	 	 
	ARTICLE TWELVE
	 
	 	 	 	 	 	 
	MISCELLANEOUS
	 
	 	 	 	 	 	 
	SECTION 12.01.
	 	Trust Indenture Act Controls	 	 	87	 
	SECTION 12.02.
	 	Notices	 	 	87	 
	SECTION 12.03.
	 	Communications by Holders with Other Holders	 	 	88	 
	SECTION 12.04.
	 	Certificate and Opinion as to Conditions Precedent	 	 	88	 
	SECTION 12.05.
	 	Statements Required in Certificate or Opinion	 	 	89	 
	SECTION 12.06.
	 	Rules by Paying Agent or Registrar	 	 	89	 
	SECTION 12.07.
	 	Legal Holidays	 	 	89	 
	SECTION 12.08.
	 	Governing Law	 	 	89	 
	SECTION 12.09.
	 	No Adverse Interpretation of Other Agreements	 	 	89	 
	SECTION 12.10.
	 	No Recourse Against Others	 	 	89	 
	SECTION 12.11.
	 	Successors	 	 	90	 
	SECTION 12.12.
	 	Duplicate Originals	 	 	90	 
	SECTION 12.13.
	 	Severability	 	 	90	 
	SECTION 12.14.
	 	Waiver of Substantive Consolidation Claims	 	 	90	 
	 
	 	 	 	 	 	 
	Signatures
	 	 	 	 	S-1	 

	 	 	 	 	 
	Exhibit A

	 	-
	 	Form of Note
	Exhibit B

	 	-
	 	Form of Legends
	Exhibit C

	 	-
	 	Form of Certificate To Be Delivered in Connection with Transfers to Non-QIB Accredited Investors
	Exhibit D

	 	-
	 	Form of Certificate To Be Delivered in Connection with Transfers Pursuant to Regulation S
	Exhibit E

	 	-
	 	Form of Certificate To Be Delivered in Connection with Transfers of Temporary Regulation S Global Note
	Exhibit F

	 	-
	 	Form of Notation of Guarantee

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

-iv-

 

          INDENTURE dated as of February 22, 2005 between CPI Holdco, Inc., a Delaware
corporation (the “Issuer”), and The Bank of New York Trust Company, N.A., a national banking
association, as Trustee (the “Trustee”).

The Issuer has duly authorized the creation of an issue of Floating Rate Senior Notes due 2015 and,
to provide therefor, the Issuer has duly authorized the execution and delivery of this Indenture.
All things necessary to make the Notes, when duly issued and executed by the Issuer and
authenticated and delivered hereunder, the valid and binding obligations of the Issuer and to make
this Indenture a valid and binding agreement of the Issuer have been done.

THIS INDENTURE WITNESSETH

For and in consideration of the premises and the purchase of the Notes by the Holders thereof,
the parties hereto covenant and agree, for the equal and proportionate benefit of all Holders, as
follows:

ARTICLE ONE

DEFINITIONS AND INCORPORATION BY REFERENCE

SECTION 1.01. Definitions.

          Set forth below are certain defined terms used in this Indenture.

          “Acquired Indebtedness” means (1) with respect to any Person that becomes a Restricted
Subsidiary after the Issue Date, Indebtedness of such Person and its Subsidiaries existing at the
time such Person becomes a Restricted Subsidiary that was not incurred in connection with, or in
contemplation of, such Person becoming a Restricted Subsidiary and (2) with respect to the Issuer
or any Restricted Subsidiary, any Indebtedness of a Person (other than the Issuer or a Restricted
Subsidiary) existing at the time such Person is merged with or into the Issuer or a Restricted
Subsidiary, or Indebtedness expressly assumed by the Issuer or any Restricted Subsidiary in
connection with the acquisition of an asset or assets from another Person, which Indebtedness was
not, in any case, incurred by such other Person in connection with, or in contemplation of, such
merger or acquisition.

          “Additional Interest” has the meaning set forth in the Registration Rights Agreement.

          “Affiliate” of any Person means any other Person which directly or indirectly controls or is
controlled by, or is under direct or indirect common control with, the referent Person. For
purposes of Section 4.14, Affiliates shall be deemed to include, with respect to any Person, any
other Person (1) which beneficially owns or holds, directly or indirectly, 10% or more of any class
of the Voting Stock of the referent Person, (2) of which 10% or more of the Voting Stock is
beneficially owned or held, directly or indirectly, by the referenced Person or (3) with respect to
an individual, any immediate family member of such Person. For purposes of this definition and the
definition of “Control Investment Affiliate,” “control” of a Person shall mean
the power to direct

 

 

the management and policies of such Person, directly or indirectly,
whether through the ownership of voting securities, by contract or otherwise.

          “Agent” means any Registrar or Paying Agent.

          “amend” means to amend, supplement, restate, amend and restate or otherwise modify including
successively, and “amendment” shall have a correlative meaning.

          “Applicable Premium” means, with respect to a Note at any Redemption Date, the greater of: (i)
1.0% of the principal amount of such Note; and (ii) the excess of (A) the present value at such
Redemption Date of (1) the redemption price of such Note on February 1, 2007 (such redemption price
being that described in the second paragraph of Section 5 of such Note) plus (2) all required
remaining scheduled interest payments due on such Note (assuming that the interest rate per annum
on the Note applicable on the date of which notice of redemption was given was in effect for the
entire period and that all interest is paid in cash) through February 1, 2007 (excluding accrued
but unpaid interest), computed using a discount rate equal to the Treasury Rate plus 50 basis
points per annum discounted on a semi-annual bond basis, over (B) the principal amount of such Note
on such Redemption Date.

          Calculation of the Applicable Premium will be made by the Issuer or on behalf of the Issuer by
such Person as the Issuer shall designate; provided, however, that such calculation shall not be a
duty or obligation of the Trustee.

          “asset” means any asset or property.

          “Asset Acquisition” means

    (1) an Investment by the Issuer or any Restricted Subsidiary of the Issuer in any other
Person if, as a result of such Investment, such Person shall become a Restricted Subsidiary
of the Issuer, or shall be merged with or into the Issuer or any Restricted Subsidiary of
the Issuer, or

    (2) the acquisition by the Issuer or any Restricted Subsidiary of the Issuer of all or
substantially all of the assets of any other Person or any division or line of business of
any other Person.

          “Asset Sale” means any sale, issuance, conveyance, transfer, lease, assignment or other
disposition by the Issuer or any Restricted Subsidiary to any Person other than the Issuer or any
Restricted Subsidiary (including by means of a Sale and Leaseback Transaction or a merger or
consolidation) (collectively, for purposes of this definition, a “transfer”), in one transaction or
a series of related transactions, of any assets of the Issuer or any of its Restricted Subsidiaries
other than in the ordinary course of business. For purposes of this definition, the term “Asset
Sale” shall not include:

    (1) transfers of cash or Cash Equivalents;

-2-

 

    (2) transfers of assets (including Equity Interests) that are governed by, and made in
accordance with Section 5.01;

    (3) Permitted Investments and Restricted Payments permitted under Section 4.11;

    (4) the creation of or realization on any Permitted Lien;

    (5) transfers of damaged, worn-out or obsolete equipment or assets that, in the
Issuer’s reasonable judgment, are no longer used or useful in the business of the Issuer or
its Restricted Subsidiaries; and

    (6) any transfer or series of related transfers that, but for this clause, would be
Asset Sales, if after giving effect to such transfers, the aggregate Fair Market Value of
the assets transferred in such transaction or any such series of related transactions does
not exceed $2.5 million.

          “Attributable Indebtedness” when used with respect to any Sale and Leaseback Transaction,
means, as at the time of determination, the present value (discounted at a rate borne by the Notes,
compounded on a semi-annual basis) of the total obligations of the lessee for rental payments
during the remaining term of the lease included in any such Sale and Leaseback Transaction.

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

          “Board of Directors” means, with respect to any Person, (i) in the case of any corporation,
the board of directors of such Person, (ii) in the case of any limited liability company, the board
of managers of such Person, (iii) in the case of any partnership, the Board of Directors of the
general partner of such Person and (iv) in any other case, the functional equivalent of the
foregoing.

          “Business Day” means a day other than a Saturday, Sunday or other day on which banking
institutions in New York are authorized or required by law to close.

          “Capitalized Lease” means a lease required to be capitalized for financial reporting purposes
in accordance with GAAP.

          “Capitalized Lease Obligations” of any Person means the obligations of such Person to pay rent
or other amounts under a Capitalized Lease, and the amount of such obligation shall be the
capitalized amount thereof determined in accordance with GAAP.

          “Cash Equivalents” means:

    (1) marketable obligations with a maturity of one year or less from the date of
determination issued or directly and fully guaranteed or insured by the United States of

-3-

 

America or any agency or instrumentality thereof (provided that the full faith and
credit of the United States of America is pledged in support thereof);

    (2) demand and time deposits and certificates of deposit or acceptances with a maturity
of 180 days or less of any financial institution that is a member of the Federal Reserve
System having combined capital and surplus and undivided profits of not less than $500
million and is assigned at least a “B” rating by Thomson Financial BankWatch;

    (3) commercial paper maturing no more than 180 days from the date of determination
thereof issued by a corporation that is not the Issuer or an Affiliate of the Issuer, and is
organized under the laws of any State of the United States of America or the District of
Columbia and rated at least A-2 by S&P or at least P-2 by Moody’s;

    (4) repurchase obligations with a term of not more than ten days for underlying
securities of the types described in clause (1) above entered into with any commercial bank
meeting the specifications of clause (2) above; and

    (5) investments in money market or other mutual funds substantially all of whose assets
comprise securities of the types described in clauses (1) through (4) above.

          “Change of Control” means the occurrence of any of the following events:

    (1) any “person” or “group” (as such terms are used in Sections 13(d) and 14(d) of the
Exchange Act, except that in no event shall the parties to the Stockholders’ Agreement be
deemed a “group” solely by virtue of being parties to the Stockholders’ Agreement), other
than one or more Permitted Holders, is or becomes the beneficial owner (as defined in Rules
13d-3 and 13d-5 under the Exchange Act, except that for purposes of this clause that person
or group shall be deemed to have “beneficial ownership” of all securities that any such
person or group has the right to acquire, whether such right is exercisable immediately or
only after the passage of time), directly or indirectly, of Voting Stock representing 50% or
more of the voting power of the total outstanding Voting Stock of the Issuer;

    (2) during any period of two consecutive years commencing after the Issue Date,
individuals who at the beginning of such period constituted the Board of Directors (together
with any new directors whose election to such Board of Directors or whose nomination for
election by the stockholders of the Issuer was approved by a vote of the majority of the
directors of the Issuer then still in office who were either directors at the beginning of
such period or whose election or nomination for election was previously so approved) cease
for any reason to constitute a majority of the Board of Directors of the Issuer;

    (3) (a) all or substantially all of the assets of the Issuer and the Restricted
Subsidiaries are sold or otherwise transferred to any Person other than a Wholly-Owned
Restricted Subsidiary or one or more Permitted Holders or (b) the Issuer consolidates or
merges with or into another Person or any Person consolidates or merges with or into
the

-4-

 

Issuer, in either case under this clause (3), in one transaction or a series of related
transactions in which immediately after the consummation thereof Persons beneficially owning
(as defined in Rules 13d-3 and 13d-5 under the Exchange Act), directly or indirectly, Voting
Stock representing in the aggregate a majority of the total voting power of the Voting Stock
of the Issuer immediately prior to such consummation, together with the Permitted Holders,
do not beneficially own (as defined in Rules 13d-3 and 13d-5 under the Exchange Act),
directly or indirectly, Voting Stock representing a majority of the total voting power of
the Voting Stock of the Issuer or the surviving or transferee Person; or

    (4) the Issuer shall adopt a plan of liquidation or dissolution or any such plan shall
be approved by the stockholders of the Issuer.

          “Consolidated Amortization Expense” for any period means the amortization expense of the
Issuer and the Restricted Subsidiaries for such period, determined on a consolidated basis in
accordance with GAAP.

          “Consolidated Cash Flow” for any period means, without duplication, the sum of the amounts for
such period of

    (1) Consolidated Net Income; plus

    (2) in each case only to the extent (and in the same proportion) deducted in
determining Consolidated Net Income:

    (a) Consolidated Income Tax Expense;

    (b) Consolidated Amortization Expense (but only to the extent not included in
Consolidated Interest Expense);

    (c) Consolidated Depreciation Expense;

    (d) Consolidated Interest Expense;

    (e) Restructuring Expenses; and

    (f) all other non-cash items reducing the Consolidated Net Income (excluding
any non-cash charge that results in an accrual of a reserve for cash charges in any
future period) for such period,

in each case determined on a consolidated basis in accordance with GAAP; minus

    (3) the aggregate amount of all non-cash items (excluding any item which represents the
reversal of any accrual of, or cash reserve for, anticipated cash charges in any period),
determined on a consolidated basis, to the extent such items increased Consolidated Net
Income for such period.

-5-

 

          “Consolidated Depreciation Expense” for any period means the depreciation expense of the
Issuer and the Restricted Subsidiaries for such period, determined on a consolidated basis in
accordance with GAAP.

          “Consolidated Income Tax Expense” for any period means the provision for taxes of the Issuer
and the Restricted Subsidiaries, determined on a consolidated basis in accordance with GAAP.

          “Consolidated Interest Coverage Ratio” means the ratio of Consolidated Cash Flow of CPI during
the Four-Quarter Period ending on or prior to the Transaction Date to Consolidated Interest Expense
for the Four-Quarter Period. For purposes of this definition, Consolidated Cash Flow and
Consolidated Interest Expense of CPI shall be calculated after giving effect on a pro forma basis
for the period of such calculation to:

    (1) the incurrence of any Indebtedness or the issuance of any Preferred Stock of CPI or
any of its Restricted Subsidiaries (and the application of the proceeds thereof) and any
repayment of other Indebtedness or redemption of other Preferred Stock (and the application
of the proceeds therefrom) (other than the incurrence or repayment of Indebtedness in the
ordinary course of business for working capital purposes pursuant to any revolving credit
arrangement) occurring during the Four-Quarter Period or at any time subsequent to the last
day of the Four-Quarter Period and on or prior to the Transaction Date, as if such
incurrence, repayment, issuance or redemption, as the case may be (and the application of
the proceeds thereof), occurred on the first day of the Four-Quarter Period; and

    (2) any Asset Sale or Asset Acquisition (including, without limitation, any Asset
Acquisition giving rise to the need to make such calculation as a result of CPI or any of
its Restricted Subsidiaries (including any Person who becomes a Restricted Subsidiary as a
result of such Asset Acquisition) incurring Acquired Indebtedness and also including any
Consolidated Cash Flow (including any pro forma expense and cost reductions calculated on a
basis consistent with Regulation S-X under the Exchange Act) associated with any such Asset
Acquisition) occurring during the Four-Quarter Period or at any time subsequent to the last
day of the Four-Quarter Period and on or prior to the Transaction Date, as if such Asset
Sale or Asset Acquisition (including the incurrence of, or assumption or liability for, any
such Indebtedness or Acquired Indebtedness) occurred on the first day of the Four-Quarter
Period.

          If CPI or any of its Restricted Subsidiaries directly or indirectly guarantees Indebtedness of
a third Person, the preceding sentence shall give effect to the incurrence of such guaranteed
Indebtedness as if CPI or such Restricted Subsidiary had directly incurred or otherwise assumed
such guaranteed Indebtedness.

-6-

 

          In calculating Consolidated Interest Expense for purposes of determining the denominator (but
not the numerator) of this Consolidated Interest Coverage Ratio:

    (1) interest on outstanding Indebtedness determined on a fluctuating basis as of the
Transaction Date and which will continue to be so determined thereafter shall be deemed to
have accrued at a fixed rate per annum equal to the rate of interest on this Indebtedness in
effect on the Transaction Date;

    (2) if interest on any Indebtedness actually incurred on the Transaction Date may
optionally be determined at an interest rate based upon a factor of a prime or similar rate,
a eurocurrency interbank offered rate, or other rates, then the interest rate in effect on
the Transaction Date will be deemed to have been in effect during the Four-Quarter Period;
and

    (3) notwithstanding clause (1) or (2) above, interest on Indebtedness determined on a
fluctuating basis, to the extent such interest is covered by agreements relating to Hedging
Obligations, shall be deemed to accrue at the rate per annum resulting after giving effect
to the operation of these agreements.

          “Consolidated Interest Expense” for any period means the sum, without duplication, of the
total interest expense minus the interest income of the Issuer and the Restricted Subsidiaries for
such period, determined on a consolidated basis in accordance with GAAP and including without
duplication,

    (1) imputed interest on Capitalized Lease Obligations and Attributable Indebtedness,

    (2) commissions, discounts and other fees and charges owed to Persons other than the
Issuer or any Restricted Subsidiary with respect to letters of credit securing financial
obligations, bankers’ acceptance financing and receivables financings,

    (3) the net costs associated with Hedging Obligations,

    (4) amortization of debt issuance costs, debt discount or premium and other financing
fees and expenses,

    (5) the interest portion of any deferred payment obligations,

    (6) all other non-cash interest expense,

    (7) capitalized interest,

    (8) the product of (a) all dividend payments on any series of Disqualified Equity
Interests of the Issuer or any Preferred Stock of any Restricted Subsidiary (other than any
such Disqualified Equity Interests or any Preferred Stock held by the Issuer or a
Wholly-Owned Restricted Subsidiary or to the extent paid in Qualified Equity Interests),

-7-

 

multiplied by (b) a fraction, the numerator of which is one and the denominator of
which is one minus the then current combined federal, state and local statutory tax rate of
the Issuer and the Restricted Subsidiaries, expressed as a decimal,

    (9) all interest payable with respect to discontinued operations, and

    (10) all interest on any Indebtedness described in clause (7) or (8) of the definition
of “Indebtedness.”

          Consolidated Interest Expense shall be calculated after giving effect to Hedging Obligations
related to interest rates (including associated costs) but excluding unrealized gains and losses
with respect to Hedging Obligations.

          “Consolidated Leverage Ratio” means, as of the Transaction Date, the ratio of (i) total
consolidated Indebtedness of the Issuer and the Restricted Subsidiaries (“Total Indebtedness”) as
of the Transaction Date, after giving effect to all incurrences and repayments of Indebtedness on
the Transaction Date, to (ii) Consolidated Cash Flow for the Four-Quarter Period ending on or prior
to the Transaction Date.

          For purposes of this definition, Consolidated Cash Flow shall be calculated after giving
effect on a pro forma basis to any Asset Sale or other disposition or Asset Acquisition (including,
without limitation, any Asset Acquisition giving rise to the need to make such calculation as a
result of the Issuer or any Restricted Subsidiary (including any Person who becomes a Restricted
Subsidiary as a result of such Asset Acquisition) incurring Acquired Indebtedness and also
including any Consolidated Cash Flow (including any pro forma expense and cost reductions
calculated on a basis consistent with Regulation S-X under the Exchange Act) associated with any
such Asset Acquisition) occurring during the Four-Quarter Period or at any time subsequent to the
last day of the Four-Quarter Period and on or prior to the Transaction Date, as if such Asset Sale
or Asset Acquisition or other disposition (including the incurrence of, or assumption or liability
for, any such Indebtedness or Acquired Indebtedness) occurred on the first day of the Four-Quarter
Period.

          “Consolidated Net Income” for any period means the net income (or loss) of the Issuer and the
Restricted Subsidiaries for such period determined on a consolidated basis in accordance with GAAP;
provided that there shall be excluded from such net income (to the extent otherwise included
therein), without duplication:

    (1) the net income (or loss) of any Person (other than a Restricted Subsidiary) in
which any Person other than the Issuer and the Restricted Subsidiaries has an ownership
interest, except to the extent that cash in an amount equal to any such income has actually
been received by the Issuer or any of its Wholly-Owned Restricted Subsidiaries during such
period;

    (2) except to the extent includible in the consolidated net income of the Issuer
pursuant to the foregoing clause (1), the net income (or loss) of any Person that accrued
prior to the date that (a) such Person becomes a Restricted Subsidiary or is merged into or

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consolidated with the Issuer or any Restricted Subsidiary or (b) the assets of such
Person are acquired by the Issuer or any Restricted Subsidiary;

    (3) solely for purposes of calculating the Restricted Payments Basket, the net income
of any Restricted Subsidiary during such period to the extent that the declaration or
payment of dividends or similar distributions by such Restricted Subsidiary of that income
is not permitted by operation of the terms of its charter or any agreement, instrument,
judgment, decree, order, statute, rule or governmental regulation applicable to such
Subsidiary during such period (unless (x) such restrictions with respect to the payment of
dividends or similar distributions have been legally waived or (y) such restriction is
permitted by Section 4.15), except that the Issuer’s equity in a net loss of any such
Restricted Subsidiary for such period shall be included in determining Consolidated Net
Income;

    (4) for the purposes of calculating the Restricted Payments Basket only, in the case of
a successor to the Issuer by consolidation, merger or transfer of its assets, any income (or
loss) of the successor prior to such merger, consolidation or transfer of assets;

    (5) other than for purposes of calculating the Restricted Payments Basket, any gain (or
loss), together with any related provisions for taxes on any such gain (or the tax effect of
any such loss), realized during such period by the Issuer or any Restricted Subsidiary upon
(a) the acquisition of any securities, or the extinguishment of any Indebtedness, of the
Issuer or any Restricted Subsidiary or (b) any Asset Sale by the Issuer or any Restricted
Subsidiary;

    (6) any increase in amortization or depreciation of goodwill or other intangible assets
resulting from purchase accounting in connection with the Merger;

    (7) gains and losses due solely to fluctuations in currency values and the related tax
effects according to GAAP;

    (8) unrealized gains and losses with respect to Hedging Obligations;

    (9) the cumulative effect of a change in accounting principles under GAAP;

    (10) any payments made in connection with the consummation of the Transactions; and

    (11) any extraordinary gain or loss and, other than for purposes of calculating the
Restricted Payments Basket, any nonrecurring gain or loss, together, as applicable, with any
related provision for taxes on any such extraordinary or nonrecurring gain (or the tax
effect of any such extraordinary or nonrecurring loss), realized by the Issuer or any
Restricted Subsidiary during such period.

    In addition:

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    (a) Consolidated Net Income shall be reduced to the extent not already reflected
therein by the amount of any payments by such Person and its Restricted Subsidiaries to or
on behalf of any direct or indirect parent of the Issuer made pursuant to Section
4.14(b)(4); and

    (b) any return of capital with respect to an Investment that increased the Restricted
Payments Basket pursuant to Section 4.11(a)(3)(d) or decreased the amount of Investments
outstanding pursuant to clause (12) of the definition of “Permitted Investments” shall be
excluded from Consolidated Net Income for purposes of calculating the Restricted Payments
Basket.

          For purposes of this definition of “Consolidated Net Income,” “nonrecurring” means any gain or
loss as of any date that is not reasonably likely to recur within the two years following such
date; provided that if there was a gain or loss similar to such gain or loss within the two years
preceding such date, such gain or loss shall not be deemed nonrecurring.

          “Consolidated Net Worth” means, with respect to any Person as of any date, the consolidated
stockholders’ equity of such Person, determined on a consolidated basis in accordance with GAAP,
less (without duplication) (1) any amounts thereof attributable to Disqualified Equity Interests of
such Person or its Subsidiaries or any amount attributable to Unrestricted Subsidiaries and (2) all
write-ups (other than write-ups resulting from foreign currency translations and write-ups of
tangible assets of a going concern business made within twelve months after the acquisition of such
business) subsequent to the Issue Date in the book value of any asset owned by such Person or a
Subsidiary of such Person.

          “Control Investment Affiliate” means, as to any Person, any other Person which directly or
indirectly is in control of, is controlled by, or is under common control with such Person and is
organized by such Person (or any Person controlling such Person) primarily for making equity or
debt investments in portfolio companies.

          “Corporate Trust Office” means the corporate trust office of the Trustee located at 700 S.
Flower Street, Suite 500, Los Angeles, CA 90017, Attention: Corporate Trust Department, or such
other office, designated by the Trustee by written notice to the Issuer, at which at any particular
time its corporate trust business shall be administered.

          “CPI” means Communications & Power Industries, Inc., a Delaware corporation.

          “Credit Agreement” means the Credit Agreement dated as of January 23, 2004, as amended and
restated on November 29, 2004, by and among CPI, as Borrower, UBS AG, Stamford Branch, as
administrative agent and collateral agent, UBS Securities LLC and Bear, Stearns & Co. Inc., as
joint lead arrangers and bookrunners, and the other agents and lenders named therein, including any
notes, guarantees, collateral and security documents, instruments and agreements executed in
connection therewith (including Hedging Obligations related to the Indebtedness incurred
thereunder), and in each case as amended or refinanced from time to time.

-10-

 

          “Credit Facilities” means one or more debt facilities (which may be outstanding at the same
time and including, without limitation, the Credit Agreement) providing for revolving credit loans,
term loans or letters of credit and, in each case, as such agreements may be amended, amended and
restated, supplemented, modified, refinanced, replaced or otherwise restructured, in whole or in
part from time to time (including increasing the amount of available borrowings thereunder or
adding Subsidiaries of the Issuer as additional borrowers or guarantors thereunder), with respect
to all or any portion of the Indebtedness under such agreement or agreements or any successor or
replacement agreement or agreements and whether or not with the same or any other agent, lender or
group of lenders and whether or not provided under the Credit Agreement or any other credit or
other agreement or indenture.

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

          “Default” means (1) any Event of Default or (2) any event, act or condition that, after notice
or the passage of time or both, would be an Event of Default.

          “Depository” means The Depository Trust Company, New York, New York, or a successor thereto
registered under the Exchange Act or other applicable statute or regulation.

          “Disqualified Equity Interests” of any Person means any class of Equity Interests of such
Person that, by its terms, or by the terms of any related agreement or of any security into which
it is convertible, puttable or exchangeable, is, or upon the happening of any event or the passage
of time would be, required to be redeemed by such Person, whether or not at the option of the
holder thereof, or matures or is mandatorily redeemable, pursuant to a sinking fund obligation or
otherwise, in whole or in part, on or prior to the date which is 91 days after the final maturity
date of the Notes; provided, however, that any class of Equity Interests of such Person that, by
its terms, authorizes such Person to satisfy in full its obligations with respect to the payment of
dividends or upon maturity, redemption (pursuant to a sinking fund or otherwise) or repurchase
thereof or otherwise by the delivery of Equity Interests that are not Disqualified Equity
Interests, and that is not convertible, puttable or exchangeable for Disqualified Equity Interests
or Indebtedness, will not be deemed to be Disqualified Equity Interests so long as such Person
satisfies its obligations with respect thereto solely by the delivery of Equity Interests that are
not Disqualified Equity Interests; provided, further, however, that any Equity Interests that would
not constitute Disqualified Equity Interests but for provisions thereof giving holders thereof (or

the holders of any security into or for which such Equity Interests are convertible, exchangeable
or exercisable) the right to require the Issuer to redeem such Equity Interests upon the occurrence
of a change in control or an asset disposition occurring prior to the final maturity date of the
Notes shall not constitute Disqualified Equity Interests if the change in control or asset
disposition provisions applicable to such Equity Interests are no more favorable to such holders
than the provisions set forth in Section 4.09 and Section 4.13, respectively, and such Equity
Interests specifically provide that the Issuer will not redeem any such Equity Interests pursuant
to such provisions prior to the Issuer’s purchase of the Notes as required pursuant to the
provisions described under Section 4.09 and Section 4.13, respectively.

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          “Equity Interests” of any Person means (1) any and all shares or other equity interests
(including common stock, preferred stock, limited liability company interests and partnership
interests) in such Person and (2) all rights to purchase, warrants or options (whether or not
currently exercisable), participations or other equivalents of or interests in (however designated)
such shares or other interests in such Person.

          “Exchange Act” means the U.S. Securities Exchange Act of 1934, as amended.

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

          “Exchange Offer” means the offer that may be made by the Issuer pursuant to the Registration
Rights Agreement to exchange Notes bearing the Private Placement Legend for the Exchange Notes.

          “Fair Market Value” means, with respect to any asset, the price (after taking into account any
liabilities relating to such assets) that would be negotiated in an arm’s-length transaction for
cash between a willing seller and a willing and able buyer, neither of which is under any
compulsion to complete the transaction, as such price is determined in good faith by members of the
Board of Directors of the Issuer disinterested with respect to the applicable transaction or a duly
authorized committee thereof, as evidenced by a resolution of such Board or committee.

          “Foreign Subsidiary” means any Restricted Subsidiary of the Issuer which (i) is not organized
under the laws of (x) the United States or any State thereof or (y) the District of Columbia and
(ii) conducts substantially all of its business operations outside the United States of America.

          “Four-Quarter Period” means the most recent four consecutive full fiscal quarters for which
financial statements are available.

          “GAAP” means generally accepted accounting principles set forth in the opinions and
pronouncements of the Accounting Principles Board of the American Institute of Certified Public
Accountants and statements and pronouncements of the Financial Accounting Standards Board or in
such other statements by such other entity as may be approved by a significant segment of the
accounting profession of the United States, as in effect on the Issue Date.

          “guarantee” means a direct or indirect guarantee by any Person of any Indebtedness of any
other Person and includes any obligation, direct or indirect, contingent or otherwise, of such
Person: (1) to purchase or pay (or advance or supply funds for the purchase or payment of)
Indebtedness of such other Person (whether arising by virtue of partnership arrangements, or by
agreements to keep-well, to purchase assets, goods, securities or services (unless such purchase
arrangements are on arm’s-length terms and are entered into in the ordinary course of business), to
take-or-pay, or to maintain financial statement conditions or otherwise); or (2) entered into for
purposes of assuring in any other manner the obligee of such Indebtedness of
the payment thereof or to protect such obligee against loss in respect thereof (in whole or in
part); “guarantee,” when used as a verb, and “guaranteed” have correlative meanings.

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          “Guarantors” means each Person that is required to, or at the election of the Issuer does,
become a Guarantor by the terms of this Indenture after the Issue Date, in each case, until such
Person is released from its Note Guarantee in accordance with the terms of this Indenture.

          “Hedging Obligations” of any Person means the obligations of such Person under swap, cap,
collar, forward purchase or similar agreements or arrangements dealing with interest rates,
currency exchange rates or commodity prices, either generally or under specific contingencies.

          “Holder” means any registered holder, from time to time, of the Notes.

          “incur” means, with respect to any Indebtedness or Obligation, incur, create, issue, assume,
guarantee or otherwise become directly or, indirectly liable, contingently or otherwise, with
respect to such Indebtedness or Obligation; provided that (1) the Indebtedness of a Person existing
at the time such Person became a Restricted Subsidiary shall be deemed to have been incurred by
such Restricted Subsidiary at such time and (2) the accrual of interest, the payment of interest in
the form of additional Indebtedness (including the issuance of Additional Notes in payment of
interest on the Notes) and the accretion of original issue discount shall not be deemed to be an
incurrence of Indebtedness.

          “Indebtedness” of any Person at any date means, without duplication:

    (1) all liabilities, contingent or otherwise, of such Person for borrowed money
(whether or not the recourse of the lender is to the whole of the assets of such Person or
only to a portion thereof);

    (2) all obligations of such Person evidenced by bonds, debentures, notes or other
similar instruments;

    (3) all reimbursement obligations of such Person in respect of letters of credit,
letters of guaranty, bankers’ acceptances and similar credit transactions;

    (4) all obligations of such Person to pay the deferred and unpaid purchase price of
property or services, except trade payables and accrued expenses incurred by such Person in
the ordinary course of business in connection with obtaining goods, materials or services;

    (5) the maximum fixed redemption or repurchase price of all Disqualified Equity
Interests of such Person;

    (6) all Capitalized Lease Obligations of such Person;

    (7) all Indebtedness of others secured by a Lien on any asset of such Person, whether
or not such Indebtedness is assumed by such Person;

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    (8) all Indebtedness of others guaranteed by such Person to the extent of such
guarantee; provided that Indebtedness of the Issuer or its Subsidiaries that is guaranteed
by the Issuer or the Issuer’s Subsidiaries shall only be counted once in the calculation of
the amount of Indebtedness of the Issuer and its Subsidiaries on a consolidated basis;

    (9) all Attributable Indebtedness;

    (10) to the extent not otherwise included in this definition, net obligations of such
Person under Hedging Obligations of such Person (the amounts of any such obligations to be
equal at any time to the termination value of such Hedging Obligation that would be payable
by, or to, such Person at such time); and

    (11) all obligations of such Person under conditional sale or other title retention
agreements relating to assets purchased by such Person.

The amount of any Indebtedness which is incurred at a discount to the principal amount at maturity
thereof as of any date shall be deemed to have been incurred at the accreted value thereof as of
such date. The amount of Indebtedness of any Person at any date shall be the outstanding balance
at such date of all unconditional obligations as described above, the maximum liability of such
Person for any such contingent obligations at such date and, in the case of clause (7), the lesser
of (a) the Fair Market Value of any asset subject to a Lien securing the Indebtedness of others on
the date that the Lien attaches and (b) the amount of the Indebtedness secured. For purposes of
clause (5), the “maximum fixed redemption or repurchase price” of any Disqualified Equity Interests
that do not have a fixed redemption or repurchase price shall be calculated in accordance with the
terms of such Disqualified Equity Interests as if such Disqualified Equity Interests were redeemed
or repurchased on any date on which an amount of Indebtedness outstanding shall be required to be
determined pursuant to this Indenture.

          “Indenture” means this Indenture, as amended or supplemented from time to time in accordance
with the terms hereof.

          “Independent Director” means a director of the Issuer who

    (1) is independent with respect to the transaction at issue;

    (2) does not have any material financial interest in the Issuer or any of its
Affiliates (other than as a result of holding securities of the Issuer or any direct or
indirect parent company of the Issuer); and

    (3) has not and whose Affiliates or affiliated firm has not, at any time during the
twelve months prior to the taking of any action hereunder, directly or indirectly, received,
or entered into any understanding or agreement to receive, any compensation, payment or
other benefit, of any type or form, from the Issuer or any of its Affiliates,
other than customary directors’ fees for serving on the Board of Directors of the
Issuer or any Affiliate and reimbursement of out-of-pocket expenses for attendance at the
Issuer’s or Affiliate’s board and board committee meetings.

-14-

 

          “Independent Financial Advisor” means an accounting, appraisal or investment banking firm of
nationally recognized standing that is, in the reasonable judgment of the Issuer’s Board of
Directors, qualified to perform the task for which it has been engaged and is not an Affiliate of
the Issuer and is otherwise disinterested with respect to the applicable transaction.

          “Initial Purchasers” means UBS Securities LLC, Wachovia Capital Markets, LLC and Bear, Stearns
& Co. Inc.

          “Institutional Accredited Investor” or “IAI” means an “accredited investor” within the meaning
of Rule 501(a)(1), (2), (3) or (7) under the Securities Act.

          “interest” means, with respect to the Notes, interest and Additional Interest, if any, on the
Notes.

          “Interest Payment Date” means the Stated Maturity of an installment of interest on the Notes.

          “Interest Period” means the period commencing on and including an Interest Payment Date and
ending on and including the day immediately preceding the next succeeding Interest Payment Date,
with the exception that the first Interest Period shall commence on and include the Issue Date and
end on and include July 31, 2005.

          “Investments” of any Person means:

    (1) all direct or indirect investments by such Person in any other Person in the form
of loans, advances or capital contributions or other credit extensions constituting
Indebtedness of such other Person, and any guarantee of Indebtedness of any other Person;

    (2) all purchases (or other acquisitions for consideration) by such Person of
Indebtedness, Equity Interests or other securities of any other Person (other than any such
purchase that constitutes a Restricted Payment of the type described in clause (2) of the
definition thereof);

    (3) all other items that would be classified as investments on a balance sheet of such
Person prepared in accordance with GAAP (including, if required by GAAP, purchases of assets
outside the ordinary course of business); and

    (4) the Designation of any Subsidiary as an Unrestricted Subsidiary.

Except as otherwise expressly specified in this definition, the amount of any Investment (other
than an Investment made in cash) shall be the Fair Market Value thereof on the date such Investment is made. The amount of Investment pursuant to clause (4) shall be the Designation Amount
determined in accordance with Section 4.19. If the Issuer or any Restricted Subsidiary sells or
otherwise disposes of any Equity Interests of any direct or indirect Restricted Subsidiary such
that, after giving effect to any such sale or disposition, such Person is no longer a Restricted

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Subsidiary, the Issuer shall be deemed to have made an Investment on the date of any such sale or
other disposition equal to the Fair Market Value of the Equity Interests of and all other
Investments in such Restricted Subsidiary not sold or disposed of, which amount shall be determined
by the Board of Directors. The acquisition by the Issuer or any Restricted Subsidiary of a Person
that holds an Investment in a third Person shall be deemed to be an Investment by the Issuer or
such Restricted Subsidiary in the third Person in an amount equal to the Fair Market Value of the
Investment held by the acquired Person in the third Person. Notwithstanding the foregoing,
purchases or redemptions of Equity Interests of the Issuer or any direct or indirect parent company
of the Issuer shall be deemed not to be Investments.

          “Issue Date” means the date on which the Notes are first issued.

          “Lien” means, with respect to any asset, any mortgage, deed of trust, lien (statutory or
other), pledge, lease, charge, security interest or other encumbrance of any kind or nature in
respect of such asset, whether or not filed, recorded or otherwise perfected under applicable law,
including any conditional sale or other title retention agreement, and any lease in the nature
thereof, and any filing of, or agreement to give, any financing statement under the Uniform
Commercial Code (or equivalent statutes) of any jurisdiction (other than cautionary filings in
respect of operating leases); provided that in no event shall an operating lease constitute a Lien.

          “Maturity Date” means February 1, 2012.

          “Merger” means the merger, on January 23, 2004, of CPI Merger Sub Corp., a Delaware
corporation and a wholly-owned subsidiary of CPI Holdco, Inc., a Delaware corporation, with and
into Communications & Power Industries Holding Corporation, a Delaware corporation, with
Communications & Power Industries Holding Corporation as the surviving corporation.

          “Moody’s” means Moody’s Investors Service, Inc., and its successors.

          “Net Available Proceeds” means, with respect to any Asset Sale, the proceeds thereof in the
form of cash or Cash Equivalents, net of:

    (1) brokerage commissions and other fees and expenses (including fees and expenses of
legal counsel, accountants and investment banks) of such Asset Sale;

    (2) relocation and demolition expenses incurred in connection with, or as a result of,
such Asset Sale;

    (3) provisions for taxes payable as a result of such Asset Sale (after taking into
account any available tax credits or deductions and any tax sharing arrangements);

    (4) amounts required to be paid to any Person (other than the Issuer or any Restricted
Subsidiary) owning a beneficial interest in the assets subject to the Asset Sale or having a
Lien thereon;

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    (5) payments of unassumed liabilities (not constituting Indebtedness) relating to the
assets sold at the time of, or within 30 days after the date of, such Asset Sale; and

    (6) appropriate amounts to be provided by the Issuer or any Restricted Subsidiary, as
the case may be, as a reserve required in accordance with GAAP against any adjustment in the
sale price of such asset or assets or liabilities associated with such Asset Sale and
retained by the Issuer or any Restricted Subsidiary, as the case may be, after such Asset
Sale, including pensions and other post-employment benefit liabilities, liabilities related
to environmental matters and liabilities under any indemnification obligations associated
with such Asset Sale, all as reflected in an Officers’ Certificate delivered to the Trustee;
provided, however, that any amounts remaining after adjustments, revaluations or
liquidations of such reserves shall constitute Net Available Proceeds at such time;

provided, that in the case of an Asset Sale of San Carlos, Net Available Proceeds shall mean the
amount calculated in accordance with this definition in excess of $6.0 million.

          “Non-Recourse Debt” means Indebtedness of an Unrestricted Subsidiary:

    (1) as to which neither the Issuer nor any Restricted Subsidiary (a) provides credit
support of any kind (including any undertaking, agreement or instrument that would
constitute Indebtedness), (b) is directly or indirectly liable as a guarantor or otherwise,
or (c) constitutes the lender;

    (2) no default with respect to which (including any rights that the holders thereof may
have to take enforcement action against an Unrestricted Subsidiary) would permit upon
notice, lapse of time or both any holder of any other Indebtedness (other than the Credit
Agreement or the Notes) of the Issuer or any Restricted Subsidiary to declare a default on
the other Indebtedness or cause the payment thereof to be accelerated or payable prior to
its Stated Maturity; and

    (3) as to which the lenders have been notified in writing that they will not have any
recourse to the Equity Interests or assets of the Issuer or any Restricted Subsidiary.

          “Non-U.S. Person” has the meaning assigned to such term in Regulation S.

          “Note Guarantee” means the guarantee by each Guarantor of the Issuer’s payment obligations
under this Indenture and the Notes, executed pursuant to this Indenture.

          “Notes” means, collectively, the Issuer’s Floating Rate Senior Notes due 2015 issued in
accordance with Section 2.02 (whether issued on the Issue Date, issued as Additional Notes, issued
as Exchange Notes or Private Exchange Notes, or otherwise issued after the Issue Date) treated as a
single class of securities under this Indenture, as amended or supplemented from time to time in
accordance with the terms of this Indenture.

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          “Obligation” means any principal, interest, penalties, fees, indemnification, reimbursements,
costs, expenses, damages and other liabilities payable under the documentation governing any
Indebtedness.

          “Offering Memorandum” means the offering memorandum of the Issuer relating to the Notes dated
February 16, 2005.

          “Officer” means any of the following of the Issuer or a Guarantor, as applicable: the
Chairman of the Board of Directors, the Chief Executive Officer, the Chief Financial Officer, the
President, any Vice President, the Treasurer or the Secretary.

          “Officers’ Certificate” means a certificate signed by two Officers.

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

          “Pari Passu Indebtedness” means any Indebtedness of the Issuer that ranks pari passu in right
of payment with the Notes.

          “Permanent Regulation S Global Note” has the meaning given to such term in Section 2.01.

          “Permitted Business” means the businesses engaged in by the Issuer and its Subsidiaries on the
Issue Date as described in the Offering Memorandum and businesses that are reasonably related
thereto or reasonable extensions thereof or complementary thereto.

          “Permitted Holder” means (i) Sponsor, (ii) its Control Investments Affiliates and (iii) any
Person with whom Sponsor or any of its Control Investment Affiliates (x) is part of a “group”
within the meaning of Section 13(d)(3) of the Exchange Act or (y) are parties to a Securityholders’
Agreement; provided that clause (iii) will be applicable only if on the first date that Sponsor and
its Control Investment Affiliates beneficially own (as defined in Rules 13d-3 and 13d-5 under the
Exchange Act), directly or indirectly, Voting Stock representing less than a majority of the voting
power of the total outstanding Voting Stock of the Issuer, the ratio of total Indebtedness of
Issuer and the Restricted Subsidiaries on a consolidated basis on such date to Consolidated Cash
Flow (calculated on a pro forma basis in accordance with Regulation S-X under the Exchange Act) for
the Four-Quarter Period is not higher than such ratio on the Issue Date.

          “Permitted Investments” means:

    (1) Investments by the Issuer or any Restricted Subsidiary in (a) any Restricted
Subsidiary or (b) in any Person that will become immediately after such Investment a
Restricted Subsidiary or that will merge or consolidate into the Issuer or a Restricted
Subsidiary;

-18-

 

    (2) Investments in the Issuer by any Restricted Subsidiary;

    (3) loans and advances to directors, employees and officers of the Issuer and the
Restricted Subsidiaries for bona fide business purposes and to purchase Equity Interests of
the Issuer not in excess of $2.0 million at any one time outstanding;

    (4) Hedging Obligations incurred pursuant to Section 4.10(b)(4);

    (5) cash and Cash Equivalents;

    (6) receivables owing to the Issuer or any Restricted Subsidiary if created or acquired
in the ordinary course of business and payable or dischargeable in accordance with customary
trade terms; provided, however, that such trade terms may include such concessionary trade
terms as the Issuer or any such Restricted Subsidiary deems reasonable under the
circumstances;

    (7) Investments in securities of trade creditors or customers received pursuant to any
plan of reorganization or similar arrangement upon the bankruptcy or insolvency of such
trade creditors or customers;

    (8) Investments made by the Issuer or any Restricted Subsidiary as a result of
consideration received in connection with an Asset Sale made in compliance with Section
4.13;

    (9) lease, utility and other similar deposits in the ordinary course of business;

    (10) Investments made by the Issuer or a Restricted Subsidiary for consideration
consisting only of Qualified Equity Interests of the Issuer;

    (11) stock, obligations or securities received in settlement of debts created in the
ordinary course of business and owing to the Issuer or any Restricted Subsidiary or in
satisfaction of judgments; and

    (12) other Investments in an aggregate amount not to exceed $15.0 million at any one
time outstanding (with each Investment being valued as of the date made and without regard
to subsequent changes in value).

The amount of Investments outstanding at any time pursuant to clause (12) above shall be deemed to
be reduced:

    (a) upon the disposition or repayment of or return on any Investment made pursuant to
clause (12) above, by an amount equal to the return of capital or principal with respect to
such Investment to the Issuer or any Restricted Subsidiary (to the extent not included in
the computation of Consolidated Net Income), less the cost of the disposition of such
Investment and net of taxes; and

-19-

 

    (b) upon a Redesignation of an Unrestricted Subsidiary as a Restricted Subsidiary, by
an amount equal to the lesser of (x) the Fair Market Value of the Issuer’s proportionate
interest in such Subsidiary immediately following such Redesignation, and (y) the aggregate
amount of Investments in such Subsidiary that increased (and did not previously decrease)
the amount of Investments outstanding pursuant to clause (12) above.

          “Permitted Liens” means the following types of Liens:

    (1) Liens for taxes, assessments or governmental charges or claims either (a) not
delinquent or (b) contested in good faith by appropriate proceedings and as to which the
Issuer or the Restricted Subsidiaries shall have set aside on its books such reserves as may
be required pursuant to GAAP;

    (2) statutory Liens of landlords and Liens of carriers, warehousemen, mechanics,
suppliers, materialmen, repairmen and other Liens imposed by law incurred in the ordinary
course of business for sums not yet delinquent or being contested in good faith, if such
reserve or other appropriate provision, if any, as shall be required by GAAP shall have been
made in respect thereof;

    (3) Liens incurred or deposits made in the ordinary course of business in connection
with workers’ compensation, unemployment insurance and other types of social security, or to
secure the performance of tenders, statutory obligations, surety and appeal bonds, bids,
leases, government contracts, performance and return-of-money bonds and other similar
obligations (exclusive of obligations for the payment of borrowed money);

    (4) Liens upon specific items of inventory or other goods and proceeds of any Person
securing such Person’s obligations in respect of bankers’ acceptances issued or created for
the account of such Person to facilitate the purchase, shipment or storage of such inventory
or other goods;

    (5) judgment Liens not giving rise to a Default so long as such Liens are adequately
bonded and any appropriate legal proceedings which may have been duly initiated for the
review of such judgment have not been finally terminated or the period within which the
proceedings may be initiated has not expired;

    (6) easements, rights-of-way, zoning restrictions and other similar charges,
restrictions or encumbrances in respect of real property or immaterial imperfections of
title which do not, in the aggregate, impair in any material respect the ordinary conduct of
the business of the Issuer and the Restricted Subsidiaries taken as a whole;

    (7) Liens securing reimbursement obligations with respect to commercial letters of
credit which encumber documents and other assets relating to such letters of credit and
products and proceeds thereof;

-20-

 

    (8) Liens encumbering deposits made to secure obligations arising from statutory,
regulatory, contractual or warranty requirements of the Issuer or any Restricted Subsidiary,
including rights of offset and setoff;

    (9) bankers’ Liens, rights of setoff and other similar Liens existing solely with
respect to cash and Cash Equivalents on deposit in one or more of accounts maintained by the
Issuer or any Restricted Subsidiary, in each case granted in the ordinary course of business
in favor of the bank or banks with which such accounts are maintained, securing amounts
owing to such bank with respect to cash management and operating account arrangements,
including those involving pooled accounts and netting arrangements; provided that in no case
shall any such Liens secure (either directly or indirectly) the repayment of any
Indebtedness;

    (10) leases or subleases granted to others that do not materially interfere with the
ordinary course of business of the Issuer or any Restricted Subsidiary;

    (11) Liens arising from filing Uniform Commercial Code financing statements regarding
leases;

    (12) Liens securing all of the Notes;

    (13) Liens existing on the Issue Date securing Indebtedness outstanding on the Issue
Date (other than Liens securing Indebtedness under the Credit Facilities);

    (14) Liens in favor of the Issuer or a Restricted Subsidiary;

    (15) Liens securing Indebtedness under the Credit Facilities;

    (16) Liens securing Indebtedness of any Restricted Subsidiary;

    (17) Liens securing Purchase Money Indebtedness and Capitalized Lease Obligations;
provided that such Liens shall not extend to any asset other than the specified asset being
financed and additions and improvements thereon;

    (18) Liens securing Acquired Indebtedness permitted to be incurred under this
Indenture; provided that the Liens do not extend to assets not subject to such Lien at the
time of acquisition (other than improvements thereon) and are no more favorable to the
lienholders than those securing such Acquired Indebtedness prior to the incurrence of such
Acquired Indebtedness by the Issuer or a Restricted Subsidiary;

    (19) Liens on assets of Foreign Subsidiaries securing Indebtedness of Foreign
Subsidiaries;

    (20) Liens on assets of a Person existing at the time such Person is acquired or merged
with or into or consolidated with the Issuer or any such Restricted Subsidiary (and not
created in anticipation or contemplation thereof);

-21-

 

    (21) Liens to secure Refinancing Indebtedness of Indebtedness secured by Liens referred
to in the foregoing clauses (13), (15) (17) and (18); provided that in the case of Liens
securing Refinancing Indebtedness of Indebtedness secured by Liens referred to in the
foregoing clauses (13) and (17) such Liens do not extend to any additional assets (other
than improvements thereon and replacements thereof);

    (22) Liens to secure Attributable Indebtedness; provided that any such Lien shall not
extend to or cover any assets of the Issuer or any Restricted Subsidiary other than the
assets which are the subject of the Sale and Leaseback Transaction in which the Attributable
Indebtedness is incurred;

    (23) Liens in favor of customs and revenue authorities arising as a matter of law to
secure payment of customs duties in connection with the importation of goods; and

    (24) Liens incurred in the ordinary course of business of the Issuer or any Restricted
Subsidiary with respect to obligations that do not in the aggregate exceed $10.0 million at
any one time outstanding.

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

          “Plan of Liquidation” with respect to any Person means a plan that provides for, contemplates
or the effectuation of which is preceded or accompanied by (whether or not substantially
contemporaneously, in phases or otherwise): (1) the sale, lease, conveyance or other disposition
of all or substantially all of the assets of such Person otherwise than as an entirety or
substantially as an entirety; and (2) the distribution of all or substantially all of the proceeds
of such sale, lease, conveyance or other disposition of all or substantially all of the remaining
assets of such Person to holders of Equity Interests of such Person.

          “Preferred Stock” means, with respect to any Person, any and all preferred or preference stock
or other equity interests (however designated) of such Person whether now outstanding or issued
after the Issue Date.

          “principal” means, with respect to the Notes, the principal of and premium, if any, on the
Notes.

          “Private Exchange” has the meaning given to it in the Registration Rights Agreement.

          “Private Exchange Notes” has the meaning given to it in the Registration Rights Agreement.

          “Private Placement Legend” means the legends initially set forth on the Notes in the form set
forth in Exhibit B.

-22-

 

          “Purchase Money Indebtedness” means Indebtedness, including Capitalized Lease Obligations, of
the Issuer or any Restricted Subsidiary incurred for the purpose of financing all or any part of
the purchase price of property, plant or equipment used in the business of the Issuer or any
Restricted Subsidiary or the cost of installation, construction or improvement thereof; provided,
however, that (1) the amount of such Indebtedness shall not exceed such purchase price or cost and
(2) such Indebtedness shall be incurred within 90 days after such acquisition of such asset by the
Issuer or such Restricted Subsidiary or such installation, construction or improvement.

          “Qualified Equity Interests” means Equity Interests of the Issuer other than Disqualified
Equity Interests; provided that such Equity Interests shall not be deemed Qualified Equity
Interests to the extent sold or owed to a Subsidiary of the Issuer or financed, directly or
indirectly, using funds (1) borrowed from the Issuer or any Subsidiary of the Issuer until and to
the extent such borrowing is repaid or (2) contributed, extended, guaranteed or advanced by the
Issuer or any Subsidiary of the Issuer (including, without limitation, in respect of any employee
stock ownership or benefit plan).

          “Qualified Equity Offering” means the issuance and sale of Qualified Equity Interests of the
Issuer or any direct or indirect parent company of the Issuer to Persons other than any Permitted
Holder or any other Person who is not, prior to such issuance and sale, an Affiliate of the Issuer,
other than in connection with a transaction or series of transactions constituting a Change of
Control; provided, however, that cash proceeds therefrom equal to not less than 100% of the
aggregate principal amount of any Notes to be redeemed are received by the Issuer as a capital
contribution immediately prior to such redemption.

          “Qualified Institutional Buyer” or “QIB” shall have the meaning specified in Rule 144A under
the Securities Act.

          “Record Date” means the applicable Record Date specified in the Notes; provided that if any
such date is not a Business Day, the Record Date shall be the first day immediately succeeding such
specified day that is a Business Day.

          “redeem” means to redeem, repurchase, purchase, defease, retire, discharge or otherwise
acquire or retire for value, and “redemption” shall have a correlative meaning; provided that this
definition shall not apply for purposes of Section 5 or Section 6 of the Notes or Article III.

          “Redemption Date,” when used with respect to any Note to be redeemed, means the date fixed for
such redemption pursuant to this Indenture and the Notes.

          “Redemption Price,” when used with respect to any Note to be redeemed, means the price fixed
for such redemption, payable in immediately available funds, pursuant to this Indenture and the
Notes.

          “Redesignation” has the meaning given to such term in Section 4.19(d).

-23-

 

          “refinance” means to refinance, repay, prepay, replace, renew or refund, including
successively.

          “Refinancing Indebtedness” means Indebtedness of the Issuer or a Restricted Subsidiary issued
in exchange for, or the proceeds of which are used, within 90 days of such issuance or receipt of
such proceeds, to redeem or refinance in whole or in part, or constituting an amendment of, any
Indebtedness of the Issuer or any Restricted Subsidiary (the “Refinanced Indebtedness”); provided
that:

    (1) the principal amount (or accreted value, in the case of Indebtedness issued at a
discount) of the Refinancing Indebtedness does not exceed the principal amount (or accreted
value, as the case may be) of the Refinanced Indebtedness plus the amount of accrued and
unpaid interest on the Refinanced Indebtedness, any premium paid to the holders of the
Refinanced Indebtedness and reasonable expenses incurred in connection with the incurrence
of the Refinancing Indebtedness;

    (2) if the Refinanced Indebtedness was subordinated to the Notes or the Note
Guarantees, as the case may be, then such Refinancing Indebtedness, by its terms, is
subordinate in right of payment to the Notes or the Note Guarantees, as the case may be, at
least to the same extent as the Refinanced Indebtedness;

    (3) the Refinancing Indebtedness is scheduled to mature no earlier than the earlier of
(a) the maturity of the Refinanced Indebtedness being repaid or amended or (b) after the
maturity date of the Notes; and

    (4) the portion, if any, of the Refinancing Indebtedness that is scheduled to mature on
or prior to the maturity date of the Notes has a Weighted Average Life to Maturity at the
time such Refinancing Indebtedness is incurred that is equal to or greater than the Weighted
Average Life to Maturity of the portion of the Refinanced Indebtedness being repaid that is
scheduled to mature on or prior to the maturity date of the Notes.

          “Registration Rights Agreement” means that certain registration rights agreement dated as of
the date of this Indenture by and among the Issuer and the initial purchasers set forth therein;
and with respect to any Additional Notes (other than Additional Notes issued as payment of interest
on Notes), one or more substantially similar registration rights agreements among the Issuer and
the other parties thereto, as such agreement(s) may be amended from time to time.

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

          “Regulation S Global Note” has the meaning given to such term in Section 2.01.

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

-24-

 

          “Restricted Payment” means any of the following:

    (1) the declaration or payment of any dividend or any other distribution on Equity
Interests of the Issuer or any Restricted Subsidiary, including, without limitation, any
payment in connection with any merger or consolidation involving the Issuer but excluding
(a) dividends or distributions payable solely in Qualified Equity Interests and (b) in the
case of Restricted Subsidiaries, dividends or distributions payable to the Issuer or to a
Restricted Subsidiary and pro rata dividends or distributions payable to minority
stockholders of any Restricted Subsidiary;

    (2) the redemption of any Equity Interests of the Issuer or any Restricted Subsidiary
or any direct or indirect parent company of the Issuer, including, without limitation, any
payment in connection with any merger or consolidation involving the Issuer but excluding
any such Equity Interests held by the Issuer or any Restricted Subsidiary;

    (3) any Investment other than a Permitted Investment; or

    (4) any redemption prior to the scheduled maturity or prior to any scheduled repayment
of principal or sinking fund payment, as the case may be, in respect of Subordinated
Indebtedness; it being understood that a redemption by a Subsidiary of the Issuer of such
Subsidiary’s Indebtedness, the guarantee by the Issuer of which Indebtedness is subordinated
to the Notes, shall not be deemed a Restricted Payment.

          “Restricted Payments Basket” has the meaning given to such term in Section 4.11(a).

          “Restricted Security” means a Note that constitutes a “Restricted Security” within the meaning
of Rule 144(a)(3) under the Securities Act; provided, however, that the Trustee shall be entitled
to request and conclusively rely on an Opinion of Counsel with respect to whether any Note
constitutes a Restricted Security.

          “Restricted Subsidiary” means, with respect to any Person, any Subsidiary of such Person other
than an Unrestricted Subsidiary. Unless otherwise indicated, “Restricted Subsidiary” shall refer
to a Restricted Subsidiary of the Issuer.

          “Restructuring Expenses” means losses, charges and expenses incurred in connection with
restructuring within the Issuer and/or one or more Restricted Subsidiaries, including in connection
with integration of acquired businesses or Persons, disposition of one or more Subsidiaries or
businesses, exiting of one or more lines of businesses and relocation or consolidation
of facilities, including severance, lease termination and other non-ordinary course,
non-operating costs and expenses in connection therewith.

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

          “S&P” means Standard & Poor’s Ratings Services, a division of the McGraw-Hill Companies, Inc.,
and its successors.

-25-

 

          “Sale and Leaseback Transactions” means with respect to any Person an arrangement with any
bank, insurance company or other lender or investor or to which such lender or investor is a party,
providing for the leasing by such Person of any asset of such Person which has been or is being
sold or transferred by such Person to such lender or investor or to any Person to whom funds have
been or are to be advanced by such lender or investor on the security of such asset.

          “San Carlos” means the Issuer’s San Carlos, California facility.

          “SEC” means the U.S. Securities and Exchange Commission.

          “Secretary’s Certificate” means a certificate signed by the Secretary of the Issuer.

          “Securities Act” means the U.S. Securities Act of 1933, as amended.

          “Securityholders’ Agreement” means an agreement among the Sponsor and/or its Control
Investment Affiliates and one or more Persons that beneficially own Voting Stock of the Issuer
pursuant to which (i) the vote of the Sponsor and/or its Control Investment Affiliates is required
for (a) the merger, consolidation or sale of all or substantially all of the assets of the Issuer
(other than a merger, consolidation or sale of all or substantially all of the assets with or to
any direct or indirect parent company of the Issuer or a Restricted Subsidiary), (b) a sale of
assets of the Issuer or any of its Subsidiaries with a Fair Market Value of $25.0 million or more
(c) the incurrence of Indebtedness by the Issuer or any of its Subsidiaries of $25.0 million in
principal amount or more and (ii) Sponsor and/or its Control Investment Affiliates shall be
entitled to designate a number of directors of the Board of Directors of the Issuer at least
proportional to its direct or indirect equity ownership of the Issuer (excluding directors who are
also officers of the Issuer) but not less than one.

          “Significant Subsidiary” means (1) any Restricted Subsidiary that would be a “significant
subsidiary” as defined in Regulation S-X promulgated pursuant to the Securities Act as such
Regulation is in effect on the Issue Date and (2) any Restricted Subsidiary that, when aggregated
with all other Restricted Subsidiaries that are not otherwise Significant Subsidiaries and as to
which any event described in clause (7) or (8) under Section 6.01 has occurred and is continuing,
would constitute a Significant Subsidiary under clause (1) of this definition.

          “Sponsor” means one or more investment funds controlled by The Cypress Group L.L.C.

          “Stockholders’ Agreement” means the stockholders’ agreement dated on or about January 23, 2004
among the Issuer and its stockholders.

          “Stated Maturity” means, with respect to any installment of interest or principal on any
Indebtedness, the date on which such payment of interest or principal is scheduled to be paid in
the documentation governing such Indebtedness, and shall not include any contingent obligations to
repay, redeem or repurchase any such interest or principal prior to the date originally scheduled
for the payment thereof.

-26-

 

          “Subordinated Indebtedness” means Indebtedness of the Issuer that is subordinated in right of
payment to the Notes.

          “Subsidiary” means, with respect to any Person:

    (1) any corporation, limited liability company, association or other business entity of
which more than 50% of the total voting power of the Equity Interests entitled (without
regard to the occurrence of any contingency) to vote in the election of the Board of
Directors thereof is at the time owned or controlled, directly or indirectly, by such Person
or one or more of the other Subsidiaries of that Person (or a combination thereof); and

    (2) any partnership (a) the sole general partner or the managing general partner of
which is such Person or of a Subsidiary of such Person or (b) the only general partners of
which are such Person or one or more Subsidiaries of such Person (or any combination
thereof).

Unless otherwise specified, “Subsidiary” refers to a Subsidiary of the Issuer.

          “Temporary Regulation S Global Note” has the meaning given to such term in Section 2.01.

          “Transaction Date” means as of the date of the transaction giving rise to the need to
calculate the Consolidated Interest Coverage Ratio or the Consolidated Leverage Ratio.

          “Transactions” means the Merger and the transactions related thereto, including the financing
and refinancing transactions.

          “Treasury Rate” means, with respect to a Redemption Date, the yield to maturity at the time of
computation of United States Treasury securities with a constant maturity (as compiled and
published in the most recent Federal Reserve Statistical Release H.15 (519) that has become
publicly available at least two Business Days prior to such Redemption Date (or, if such
Statistical Release is no longer published, any publicly available source of similar market data))
most nearly equal to the period from such Redemption Date to February 1, 2007; provided, however,
that if the period from such Redemption Date to February 1, 2007 is not equal to the constant
maturity of the United States Treasury security for which a weekly average yield is given, the
Treasury Rate shall be obtained by linear interpolation (calculated to the nearest one-twelfth
of a year) from the weekly average yields of United States Treasury securities for which such
yields are given, except that if the period from such Redemption Date to February 1, 2007 is less
than one year, the weekly average yield on actually traded United States Treasury securities
adjusted to a constant maturity of one year shall be used.

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

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

-27-

 

          “Unrestricted Subsidiary” means (1) any Subsidiary that at the time of determination shall be
designated an Unrestricted Subsidiary by the Board of Directors of the Issuer in accordance with
Section 4.19 and (2) any Subsidiary of an Unrestricted Subsidiary.

          “U.S. Government Obligations” means direct non-callable obligations of, or obligations
guaranteed by, the United States of America for the payment of which guarantee or obligations the
full faith and credit of the United States is pledged.

          “U.S. Legal Tender” means such coin or currency of the United States of America that at the
time of payment shall be legal tender for the payment of public and private debts.

          “Voting Stock” with respect to any Person means securities of any class of Equity Interests of
such Person entitling the holders thereof (whether at all times or only so long as no senior class
of stock or other relevant equity interest has voting power by reason of any contingency) to vote
in the election of members of the Board of Directors of such Person.

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

          “Wholly-Owned Restricted Subsidiary” means a Restricted Subsidiary of which 100% of the Equity
Interests (except for directors’ qualifying shares or certain minority interests owned by other
Persons solely due to local law requirements that there be more than one stockholder, but which
interest is not in excess of what is required for such purpose) are owned directly by the Issuer or
through one or more Wholly-Owned Restricted Subsidiaries.

SECTION 1.02. Other Definitions.

	 	 	 	 	 
	Term	 	 	 	Defined in Section
	“144A Global Note”
	 	 	 	2.01
	“Additional Notes”
	 	 	 	2.02
	“Affiliate Transaction”
	 	 	 	4.14
	“Authentication Order”
	 	 	 	2.02
	“Change of Control Payment Date”
	 	 	 	4.09
	“Change of Control Purchase Price”
	 	 	 	4.09
	“CPI Coverage Ratio Exception
	 	 	 	         4.10(a)(ii)
	“Covenant Defeasance”
	 	 	 	8.02
	“Coverage Ratio Exception”
	 	 	 	4.10
	“Designation”
	 	 	 	4.19
	“Designation Amount”
	 	 	 	4.19
	“Event of Default”
	 	 	 	6.01

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	Term	 	 	 	Defined in Section
	“Excess Proceeds”
	 	 	 	4.13
	“Four-Quarter Period”
	 	 	 	1.01
	“Guarantee Obligations”
	 	 	 	11.01
	“Global Note”
	 	 	 	2.01
	“IAI Global Note”
	 	 	 	2.01
	“Initial Global Note”
	 	 	 	2.01
	“Initial Notes”
	 	 	 	2.01
	“Issuer Coverage Ratio Exception”.
	 	 	 	        4.10(a)(i)
	“Legal Defeasance”
	 	 	 	8.02
	“Net Proceeds Deficiency”
	 	 	 	4.13
	“Net Proceeds Offer”
	 	 	 	4.13
	“Net Proceeds Payment Date”
	 	 	 	4.13
	“Offered Price”
	 	 	 	4.13
	“Pari Passu Indebtedness Price”
	 	 	 	4.13
	“Parent Successor”
	 	 	 	5.01
	“Participants”
	 	 	 	2.15
	“Paying Agent”
	 	 	 	2.03
	“Payment Amount”
	 	 	 	4.13
	“Permitted Indebtedness”
	 	 	 	4.10
	“Physical Notes”
	 	 	 	2.01
	“Redesignation”
	 	 	 	4.19
	“Registrar”
	 	 	 	2.03
	“Restricted Payments Basket”
	 	 	 	4.11
	“Successor”
	 	 	 	5.01
	“Transaction Date”
	 	 	 	1.01

SECTION 1.03. Incorporation by Reference of Trust Indenture Act.

          Whenever this Indenture refers to a provision of the Trust Indenture Act, such provision is
incorporated by reference in, and made a part of, this Indenture. The following Trust Indenture
Act terms used in this Indenture have the following meanings:

          “indenture securities” means the Notes.

          “indenture security holder” means a Holder.

          “indenture to be qualified” means this Indenture.

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

          “obligor” on the indenture securities means the Issuer, any Guarantor or any other
obligor on the Notes.

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          All other Trust Indenture Act terms used in this Indenture that are defined by the Trust
Indenture Act, defined by Trust Indenture Act reference to another statute or defined by SEC rule
and not otherwise defined herein have the meanings assigned to them therein.

SECTION 1.04. Rules of Construction.

          Unless the context otherwise requires:

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

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

    (3) “or” is not exclusive;

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

    (5) provisions apply to successive events and transactions;

    (6) the words “Guarantor”, “Guarantors” and “Note Guarantee” shall be deemed to be
followed by “if any.”

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

    (8) the words “including,” “includes” and similar words shall be deemed to be followed
by “without limitation.”

ARTICLE TWO

THE NOTES

SECTION 2.01. Form and Dating.

          The Notes and the Trustee’s certificate of authentication shall be substantially in the form
of Exhibit A hereto. The Notes may have notations, legends or endorsements required by
law, stock exchange rule or usage. The Issuer shall approve the form of the Notes and any
notation, legend or endorsement on them. Each Note shall be dated the date of its issuance and
show the date of its authentication.

          The terms and provisions contained in the Notes shall constitute, and are hereby expressly
made, a part of this Indenture and, to the extent applicable, the Issuer and the Trustee, by their
execution and delivery of this Indenture, expressly agree to such terms and provisions and to be
bound thereby.

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          Notes offered and sold in reliance on Rule 144A shall be issued initially in the form of a
single permanent global Note in registered form, substantially in the form set forth in Exhibit
A (the “144A Global Note”), deposited with the Trustee, as custodian for the Depository, duly
executed by the Issuer and authenticated by the Trustee as hereinafter provided and shall bear the
legends set forth in Exhibit B.

          Notes offered and sold in offshore transactions in reliance on Regulation S shall be issued
initially in the form of a single temporary global Note in registered form, substantially in the
form of Exhibit A (the “Temporary Regulation S Global Note”), deposited with the Trustee,
as custodian for the Depository, duly executed by the Issuer (and having an executed Note Guarantee
from each of the Guarantors endorsed thereon) and authenticated by the Trustee as hereinafter
provided and shall bear the legends set forth in Exhibit B. Reasonably promptly following
the date that is 40 days after the later of the commencement of the offering of the Notes in
reliance on Regulation S and the Issue Date, upon receipt by the Trustee and the Issuer of a duly
executed certificate certifying that the Holder of the beneficial interest in the Temporary
Regulation S Global Note is a Non-U.S. Person, substantially in the form of Exhibit E from
the Depository, a single permanent global Note in registered form substantially in the form of
Exhibit A (the “Permanent Regulation S Global Note,” and together with the Temporary
Regulation S Global Note, the “Regulation S Global Note”) duly executed by the Issuer (and having
an executed Note Guarantee from each of the Guarantors endorsed thereon) and authenticated by the
Trustee as hereinafter provided shall be deposited with the Trustee, as custodian for the
Depository, and the Registrar shall reflect on its books and records the cancellation of the
Temporary Regulation S Global Note and the issuance of the Permanent Regulation S Global Note.

          The initial offer and resale of the Notes shall not be to an Institutional Accredited
Investor. The Notes resold to Institutional Accredited Investors in connection with the first
transfer made pursuant to Section 2.16(a) shall be issued initially in the form of a single
permanent Global Note in registered form, substantially in the form set forth in Exhibit A
(the “IAI Global Note,” and, together with the 144A Global Note and the Regulation S Global Note,
the “Initial Global Notes”), deposited with the Trustee, as custodian for the Depository, duly
executed by the Issuer (and having an executed Note Guarantee from each of the Guarantors endorsed
thereon) and authenticated by the Trustee as hereinafter provided and shall bear the legend set
forth in Exhibit B.

          Notes issued after the Issue Date shall be issued initially in the form of one or more global
Notes in registered form, substantially in the form set forth in Exhibit A, deposited with
the Trustee, as custodian for the Depository, duly executed by the Issuer (and having an executed
Note Guarantee from each of the Guarantors endorsed thereon) and authenticated by
the Trustee as hereinafter provided and shall bear any legends required by applicable law
(together with the Initial Global Notes, the “Global Notes”) or as Physical Notes.

          The aggregate principal amount of the Global Notes may from time to time be increased or
decreased by adjustments made on the records of the Trustee, as custodian for the Depository, as
hereinafter provided. Notes issued in exchange for interests in a Global Note pursuant to Section
2.16 may be issued in the form of permanent certificated Notes in registered form

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in substantially
the form set forth in Exhibit A and bearing the applicable legends, if any, (the “Physical
Notes”).

SECTION 2.02. Execution, Authentication and Denomination; Additional Notes;
Exchange Notes

          One Officer of the Issuer (who shall have been duly authorized by all requisite corporate
actions) shall sign the Notes for such Issuer by manual or facsimile signature. One Officer of a
Guarantor (who shall have been duly authorized by all requisite corporate actions) shall sign the
Note Guarantee for such Guarantor by manual or facsimile signature.

          If an Officer whose signature is on a Note or Note Guarantee, as the case may be, was an
Officer at the time of such execution but no longer holds that office at the time the Trustee
authenticates the Note, the Note shall nevertheless be valid.

          A Note (and the Guarantees in respect thereof) shall not be valid until an authorized
signatory of the Trustee manually signs the certificate of authentication on the Note. The
signature shall be conclusive evidence that the Note has been authenticated under this Indenture.

          The Trustee shall authenticate (i) on the Issue Date, Notes for original issue in the
aggregate principal amount not to exceed $80,000,000 (the “Initial Notes”), (ii) additional Notes
(the “Additional Notes”) in an unlimited amount (so long as not otherwise prohibited by the terms
of this Indenture, including, without limitation, Section 4.10), (iii) Exchange Notes or Private
Exchange Notes (x) in exchange for a like principal amount of Initial Notes or (y) in exchange for
a like principal amount of Additional Notes and (iv) Additional Notes issued as payment of interest
on Notes issued pursuant to the foregoing clauses (i) through (iii) or this clause (iv), in each
case, upon a written order of the Issuer in the form of a certificate of an Officer of the Issuer
(an “Authentication Order”). Each such Authentication Order shall specify the amount of Notes to
be authenticated and the date on which the Notes are to be authenticated, whether the Notes are to
be Initial Notes, Exchange Notes, Private Exchange Notes or Additional Notes and whether the Notes
are to be issued as certificated Notes or Global Notes or such other information as the Trustee may
reasonably request. In addition, with respect to authentication pursuant to clause (ii) or (iii)
of the first sentence of this paragraph, the first such Authentication Order from the Issuer shall
be accompanied by an Opinion of Counsel of the Issuer in a form reasonably satisfactory to the
Trustee.

          All Notes issued under this Indenture shall be treated as a single class for all purposes
under this Indenture. The Additional Notes and the Private Exchange Notes shall bear any legend
required by applicable law.

          The Trustee may appoint an authenticating agent reasonably acceptable to the Issuer to
authenticate Notes. Unless otherwise provided in the appointment, an authenticating agent may
authenticate Notes whenever the Trustee may do so. Each reference in this Indenture to
authentication by the Trustee includes authentication by such agent. An authenticating agent has
the same rights as an Agent to deal with the Issuer and Affiliates of the Issuer. The Trustee
shall have the right to decline to authenticate and deliver any Notes under this Indenture if the

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Trustee, being advised by counsel, 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.

          The Notes shall be issuable only in registered form without coupons in denominations of $1,000
and integral multiples thereof; provided, however, that Additional Notes issued in payment of
interest or Additional Interest will be issued in denominations of $1 and integral multiples of $1.

SECTION 2.03. Registrar and Paying Agent.

          The Issuer shall maintain or cause to be maintained an office or agency in the Borough of
Manhattan, The City of New York, where (a) Notes may be presented or surrendered for registration
of transfer or for exchange (“Registrar”), (b) Notes may, subject to Section 2 of the Notes, be
presented or surrendered for payment (“Paying Agent”) and (c) notices and demands to or upon the
Issuer in respect of the Notes and this Indenture may be served. The Issuer 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, however, that no such designation or rescission shall in any manner relieve the Issuer of
its obligation to maintain or cause to be maintained an office or agency in the Borough of
Manhattan, The City of New York, for such purposes. The Issuer may act as Registrar or Paying
Agent, except that for the purposes of Articles Three and Eight and Sections 4.09 and 4.13, neither
the Issuer nor any Affiliate of the Issuer shall act as Paying Agent. The Registrar shall keep a
register of the Notes and of their transfer and exchange. The Issuer, upon notice to the Trustee,
may have one or more co-registrars and one or more additional paying agents reasonably acceptable
to the Trustee. The term “Registrar” includes any co-registrar and the term “Paying Agent”
includes any additional paying agent. The Issuer initially appoints the Trustee as Registrar and
Paying Agent until such time as the Trustee has resigned or a successor has been appointed.

          The Issuer shall enter into an appropriate agency agreement with any Agent not a party to this
Indenture, which agreement shall implement the provisions of this Indenture that relate to such
Agent. The Issuer shall notify the Trustee, in advance, of the name and address of any such Agent.
If the Issuer fails to maintain a Registrar or Paying Agent, the Trustee shall act as such.

SECTION 2.04. Paying Agent To Hold Assets in Trust.

          The Issuer shall require each Paying Agent other than the Trustee or the Issuer or any
Subsidiary to agree in writing that each Paying Agent shall hold in trust for the benefit of
Holders or the Trustee all assets held by the Paying Agent for the payment of principal of, or
interest on, the Notes (whether such assets have been distributed to it by the Issuer or any other
obligor on the Notes), and shall notify the Trustee of any Default by the Issuer (or any other
obligor on the Notes) in making any such payment. The Issuer at any time may require a Paying
Agent to distribute all assets held by it to the Trustee and account for any assets disbursed and
the Trustee may at any time during the continuance of any payment Default, upon written request

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to
a Paying Agent, require such Paying Agent to distribute all assets held by it to the Trustee and to
account for any assets distributed. Upon distribution to the Trustee of all assets that shall have
been delivered by the Issuer to the Paying Agent, the Paying Agent shall have no further liability
for such assets.

SECTION 2.05. Holder Lists.

          The Trustee shall preserve in as current a form as is reasonably practicable the most recent
list available to it of the names and addresses of Holders. If the Trustee is not the Registrar,
the Issuer shall furnish to the Trustee at least two (2) Business Days prior to each Interest
Payment Date and at such other times as the Trustee may request in writing a list, in such form and
as of such date as the Trustee may reasonably require, of the names and addresses of Holders, which
list may be conclusively relied upon by the Trustee.

SECTION 2.06. Transfer and Exchange.

          Subject to Sections 2.15 and 2.16, when Notes are presented to the Registrar with a request to
register the transfer of such Notes or to exchange such Notes for an equal principal amount of
Notes of other authorized denominations, the Registrar shall register the transfer or make the
exchange as requested if its requirements for such transaction are met; provided, however, that the
Notes surrendered for transfer or exchange shall be duly endorsed or accompanied by a written
instrument of transfer in form satisfactory to the Issuer and the Registrar, duly executed by the
Holder thereof or his or her attorney duly authorized in writing. To permit registrations of
transfers and exchanges, the Issuer shall execute and the Trustee shall authenticate Notes at the
Registrar’s request. No service charge shall be made for any registration of transfer or exchange,
but the Issuer may require payment of a sum sufficient to cover any transfer tax or similar
governmental charge payable in connection therewith.

          Without the prior written consent of the Issuer, the Registrar shall not be required to
register the transfer of or exchange of any Note (i) during a period beginning at the opening of
business 15 days before the mailing of a notice of redemption of Notes and ending at the close of
business on the day of such mailing, (ii) selected for redemption in whole or in part pursuant to
Article Three, except the unredeemed portion of any Note being redeemed in part, and (iii)
beginning at the opening of business on any Record Date and ending on the close of business on the
related Interest Payment Date.

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

SECTION 2.07. Replacement Notes.

          If a mutilated Note is surrendered to the Trustee or if the Holder of a Note claims that the
Note has been lost, destroyed or wrongfully taken, the Issuer shall issue and the Trustee

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shall
authenticate a replacement Note if the Trustee’s requirements are met. Such Holder must provide an
indemnity bond or other indemnity, sufficient in the judgment of both the Issuer and the Trustee,
to protect the Issuer, the Trustee or any Agent from any loss which any of them may suffer if a
Note is replaced. The Issuer may charge such Holder for its reasonable out-of-pocket expenses in
replacing a Note pursuant to this Section 2.07, including reasonable fees and expenses of counsel
and of the Trustee.

          Every replacement Note is an additional obligation of the Issuer and every replacement Note
Guarantee shall constitute an additional obligation of the Guarantor thereof.

          The provisions of this Section 2.07 are exclusive and shall preclude (to the extent lawful)
all other rights and remedies with respect to the replacement or payment of lost, destroyed or
wrongfully taken Notes.

SECTION 2.08. Outstanding Notes.

          Notes outstanding at any time are all the Notes that have been authenticated by the Trustee
except those cancelled by it, those delivered to it for cancellation and those described in this
Section as not outstanding. A Note does not cease to be outstanding because the Issuer, the
Guarantors or any of their respective Affiliates hold the Note (subject to the provisions of
Section 2.09).

          If a Note is replaced pursuant to Section 2.07 (other than a mutilated Note surrendered for
replacement), it ceases to be outstanding unless a Responsible Officer of the Trustee receives
proof satisfactory to it that the replaced Note is held by a bona fide purchaser. A mutilated Note
ceases to be outstanding upon surrender of such Note and replacement thereof pursuant to Section
2.07.

          If the principal amount of any Note is considered paid under Section 4.01, it ceases to be
outstanding and interest ceases to accrue. If on a Redemption Date or the Maturity Date the
Trustee or Paying Agent (other than the Issuer or an Affiliate thereof) holds U.S. Legal Tender or
U.S. Government Obligations sufficient to pay all of the principal and interest due on the Notes
payable on that date, then on and after that date such Notes cease to be outstanding and interest
on them ceases to accrue.

SECTION 2.09. Treasury Notes.

          In determining whether the Holders of the required principal amount of Notes have concurred in
any direction, waiver or consent, Notes owned by the Issuer or any of its Af
filiates shall be disregarded, except that, for the purposes of determining whether the
Trustee shall be protected in relying on any such direction, waiver or consent, only Notes that a
Responsible Officer of the Trustee actually knows are so owned shall be disregarded.

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SECTION 2.10. Temporary Notes.

           Until definitive Notes are ready for delivery, the Issuer may prepare and the Trustee shall
authenticate temporary Notes. Temporary Notes shall be substantially in the form of definitive
Notes but may have variations that the Issuer considers appropriate for temporary Notes. Without
unreasonable delay, the Issuer shall prepare and the Trustee shall authenticate definitive Notes in
exchange for temporary Notes. Until such exchange, temporary Notes shall be entitled to the same
rights, benefits and privileges as definitive Notes. Notwithstanding the foregoing, so long as the
Notes are represented by a Global Note, such Global Note may be in typewritten form.

SECTION 2.11. Cancellation.

           The Issuer at any time may deliver Notes to the Trustee for cancellation. The Registrar and
the Paying Agent shall forward to the Trustee any Notes surrendered to them for transfer, exchange
or payment. The Trustee, or at the direction of the Trustee, the Registrar or the Paying Agent
(other than the Issuer or a Subsidiary), and no one else, shall cancel and, at the written
direction of the Issuer, shall dispose of all Notes surrendered for transfer, exchange, payment or
cancellation in accordance with its customary procedures. Subject to Section 2.07, the Issuer may
not issue new Notes to replace Notes that it has paid or delivered to the Trustee for cancellation.
If the Issuer or any Guarantor shall acquire any of the Notes, such acquisition shall not operate
as a redemption or satisfaction of the Indebtedness represented by such Notes unless and until the
same are surrendered to the Trustee for cancellation pursuant to this Section 2.11.

SECTION 2.12. Defaulted Interest.

           If the Issuer defaults in a payment of interest on the Notes, it shall pay the defaulted
interest, plus (to the extent lawful) any interest payable on the defaulted interest, in any lawful
manner. The Issuer may pay the defaulted interest to the persons who are Holders on a subsequent
special record date, which date shall be the fifteenth day next preceding the date fixed by the
Issuer for the payment of defaulted interest or the next succeeding Business Day if such date is
not a Business Day. At least 15 days before any such subsequent special record date, the Issuer
shall mail to each Holder, with a copy to the Trustee, a notice that states the subsequent special
record date, the payment date and the amount of defaulted interest, and interest payable on such
defaulted interest, if any, to be paid.

SECTION 2.13. CUSIP and ISIN Numbers.

           The Issuer in issuing the Notes may use “CUSIP” or “ISIN” numbers, and if so, the Trustee
shall use the “CUSIP” or “ISIN” numbers in notices of redemption or exchange as a convenience to
Holders; provided, however, that any such notice may state that no representation
is made as to the correctness or accuracy of the “CUSIP” or “ISIN” numbers printed in the
notice or on the Notes, and that reliance may be placed only on the other identification numbers
printed on the Notes. The Issuer will promptly notify the Trustee of any change in the “CUSIP” or
“ISIN” numbers.

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SECTION 2.14. Deposit of Moneys.

           Subject to Section 2 of the Notes, prior to 10:00 a.m. New York City time on each Interest
Payment Date, Maturity Date, Redemption Date, Change of Control Payment Date and Net Proceeds
Payment Date, the Issuer shall have deposited with the Paying Agent in immediately available funds
money sufficient to make cash payments, if any, due on such Interest Payment Date, Maturity Date,
Redemption Date, Change of Control Payment Date and Net Proceeds Payment Date, as the case may be,
in a timely manner which permits the Paying Agent to remit payment to the Holders on such Interest
Payment Date, Maturity Date, Redemption Date, Change of Control Payment Date and Net Proceeds
Payment Date, as the case may be.

SECTION 2.15. Book-Entry Provisions for Global Notes.

           (a) The Global Notes initially shall (i) be registered in the name of the Depository or the
nominee of such Depository, (ii) be delivered to the Trustee as custodian for such Depository and
(iii) bear legends as set forth in Exhibit B, as applicable.

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

           (b) Transfers of Global Notes shall be limited to transfers in whole, but not in part, to the
Depository, its successors or their respective nominees. Interests of beneficial owners in the
Global Notes may be transferred or exchanged for Physical Notes in accordance with the rules and
procedures of the Depository and the provisions of Section 2.16. In addition, Physical Notes shall
be transferred to all beneficial owners in exchange for their beneficial interests in Global Notes
if (i) the Depository notifies the Issuer that it is unwilling or unable to act as Depository for
any Global Note, the Issuer so notifies the Trustee in writing and a successor Depository is not
appointed by the Issuer within 90 days of such notice, (ii) the Issuer, at its option, notifies the
Trustee in writing that it elects to cause the issuance of the Notes in the form of Physical Notes
under the Indenture, or (iii) a Default or Event of Default has occurred and is continuing and the
Registrar has received a written request from any owner of a beneficial interest in a Global Note
to issue Physical Notes. Upon any issuance of a Physical Note in accordance with this Section
2.15(b) the Trustee is required to register such Physical Note in the name
of, and cause the same to be delivered to, such person or persons (or the nominee of any
thereof). All such Physical Notes shall bear the applicable legends, if any.

           (c) In connection with any transfer or exchange of a portion of the beneficial interest in a
Global Note to beneficial owners pursuant to paragraph (b) of this Section 2.15, the Registrar
shall (if one or more Physical Notes are to be issued) reflect on its books and records

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the date
and a decrease in the principal amount of such Global Note in an amount equal to the principal
amount of the beneficial interest in the Global Note to be transferred, and the Issuer shall
execute, and the Trustee shall authenticate and deliver, one or more Physical Notes of authorized
denominations in an aggregate principal amount equal to the principal amount of the beneficial
interest in the Global Note so transferred.

           (d) In connection with the transfer of a Global Note as an entirety to beneficial owners
pursuant to paragraph (b) of this Section 2.15, such Global Note shall be deemed to be surrendered
to the Trustee for cancellation, and (i) the Issuer shall execute, (ii) the Guarantors shall
execute notations of Note Guarantees on and (iii) the Trustee shall upon written instructions from
the Issuer authenticate and deliver, to each beneficial owner identified by the Depository in
exchange for its beneficial interest in such Global Note, an equal aggregate principal amount of
Physical Notes of authorized denominations.

           (e) Any Physical Note constituting a Restricted Security delivered in exchange for an interest
in a Global Note pursuant to paragraph (b) or (c) of this Section 2.15 shall, except as otherwise
provided by Section 2.16, bear the Private Placement Legend.

           (f) The Holder of any Global Note may grant proxies and otherwise authorize any Person,
including Participants and Persons that may hold interests through Participants, to take any action
which a Holder is entitled to take under this Indenture or the Notes.

SECTION 2.16. Special Transfer and Exchange Provisions.

           (a) Transfers to Non-QIB Institutional Accredited Investors. The following provisions
shall apply with respect to the registration of any proposed transfer of a Restricted Security to
any Institutional Accredited Investor which is not a QIB:

     (i) the Registrar shall register the transfer of any Restricted Security, whether or
not such Note bears the Private Placement Legend, if (x) the requested transfer is after the
second anniversary of the Issue Date; provided, however, that neither the Issuer nor any
Affiliate of the Issuer has held any beneficial interest in such Note, or portion thereof,
at any time on or prior to the second anniversary of the Issue Date or (y) the proposed
transferee has delivered to the Registrar a certificate substantially in the form of
Exhibit C hereto and any legal opinions and certifications as may be reasonably
requested by the Trustee and the Issuer;

     (ii) if the proposed transferee is a Participant and the Notes to be transferred
consist of Physical Notes which after transfer are to be evidenced by an interest in the IAI
Global Note, upon receipt by the Registrar of the Physical Note and (x) written instructions given in accordance with the Depository’s and the Registrar’s procedures and (y)
the certificate, if required, referred to in clause (y) of paragraph (i) above (and any
legal opinion or other certifications), the Registrar shall register the transfer and
reflect on its books and records the date and an increase in the principal amount of the IAI
Global Note in an amount equal to the principal amount of Physical Notes to be transferred,
and the Registrar shall cancel the Physical Notes so transferred; and

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     (iii) if the proposed transferor is a Participant seeking to transfer an interest in a
Global Note, upon receipt by the Registrar of (x) written instructions given in accordance
with the Depository’s and the Registrar’s procedures and (y) the certificate, if required,
referred to in clause (y) of paragraph (i) above, the Registrar shall register the transfer
and reflect on its books and records the date and (A) a decrease in the principal amount of
the Global Note from which such interests are to be transferred in an amount equal to the
principal amount of the Notes to be transferred and (B) an increase in the principal amount
of the IAI Global Note in an amount equal to the principal amount of the Notes to be
transferred.

           (b) Transfers to QIBs. The following provisions shall apply with respect to the
registration of any proposed transfer of a Restricted Security to a QIB:

     (i) the Registrar shall register the transfer of any Restricted Security, whether or
not such Note bears the Private Placement Legend, if (x) the requested transfer is after the
second anniversary of the Issue Date; provided, however, that neither the Issuer nor any
Affiliate of the Issuer has held any beneficial interest in such Note, or portion thereof,
at any time on or prior to the second anniversary of the Issue Date or (y) such transfer is
being made by a proposed transferor who has checked the box provided for on the applicable
Global Note stating, or has otherwise advised the Issuer and the Registrar in writing, that
the sale has been made in compliance with the provisions of Rule 144A to a transferee who
has signed the certification provided for on the applicable Global Note stating, or has
otherwise advised the Issuer and the Registrar in writing, that it is purchasing the Note
for its own account or an account with respect to which it exercises sole investment
discretion and that it and any such account is a QIB within the meaning of Rule 144A, and is
aware that the sale to it is being made in reliance on Rule 144A and acknowledges that it
has received such information regarding the Issuer as it has requested pursuant to Rule 144A
or has determined not to request such information and that it is aware that the transferor
is relying upon its foregoing representations in order to claim the exemption from
registration provided by Rule 144A;

     (ii) if the proposed transferee is a Participant and the Notes to be transferred
consist of Physical Notes which after transfer are to be evidenced by an interest in the
144A Global Note, upon receipt by the Registrar of the Physical Note and written
instructions given in accordance with the Depository’s and the Registrar’s procedures, the
Registrar shall register the transfer and reflect on its book and records the date and an
increase in the principal amount of the 144A Global Note in an amount equal to the princi
pal amount of Physical Notes to be transferred, and the Registrar shall cancel the
Physical Notes so transferred; and

     (iii) if the proposed transferor is a Participant seeking to transfer an interest in
the IAI Global Note or the Regulation S Global Note, upon receipt by the Registrar of
written instructions given in accordance with the Depository’s and the Registrar’s
procedures, the Registrar shall register the transfer and reflect on its books and records
the date and (A) a decrease in the principal amount of the IAI Global Note or the Regulation
S

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Global Note, as the case may be, in an amount equal to the principal amount of the Notes
to be transferred and (B) an increase in the principal amount of the 144A Global Note in an
amount equal to the principal amount of the Notes to be transferred.

           (c) Transfers of Interests in the Temporary Regulation S Global Note. The following
provisions shall apply with respect to the registration of any proposed transfer of interests in
the Temporary Regulation S Global Note:

     (i) the Registrar shall register the transfer of an interest in the Temporary
Regulation S Global Note, whether or not such Global Note bears the Private Placement Legend
if the proposed transferor has delivered to the Registrar a certificate substantially in the
form of Exhibit E stating, among other things, that the proposed transferee is a
Non-U.S. Person (except for a transfer to an Initial Purchaser);

     (ii) if the proposed transferee is a Participant, upon receipt by the Registrar of the
documents referred to in clause (i)(x) above, if required, and instructions given in
accordance with the Depository’s and the Registrar’s procedures, the Registrar shall reflect
on its books and records the date and amount of such transfer of an interest in the
Temporary Regulation S Global Note.

           (d) Transfers to Non-U.S. Persons. The following provisions shall apply with respect
to any transfer of a Restricted Security to a Non-U.S. Person under Regulation S:

     (i) the Registrar shall register any proposed transfer of a Restricted Security to a
Non-U.S. Person upon receipt of a certificate substantially in the form of Exhibit D
from the proposed transferor and such certifications, legal opinions and other information
as the Trustee or the Issuer may reasonably request; and

     (ii) (a) if the proposed transferor is a Participant holding a beneficial interest in
the Rule 144A Global Note or the IAI Global Note or the Note to be transferred consists of
Physical Notes, upon receipt by the Registrar of (x) the documents required by paragraph (i)
and (y) instructions in accordance with the Depository’s and the Registrar’s procedures, the
Registrar shall reflect on its books and records the date and a decrease in the principal
amount of the Rule 144A Global Note or the IAI Global Note, as the case may be, in an amount
equal to the principal amount of the beneficial interest in the Rule 144A Global Note or the
IAI Global Note, as the case may be, to be transferred or cancel the Physical Notes to be
transferred, and (b) if the proposed transferee is a Participant, upon receipt by the
Registrar of instructions given in accordance with the Depository’s
and the Registrar’s procedures, the Registrar shall reflect on its books and records
the date and an increase in the principal amount of the Permanent Regulation S Global Note
in an amount equal to the principal amount of the Rule 144A Global Note, the IAI Global Note
or the Physical Notes, as the case may be, to be transferred.

           (e) Exchange Offer. Upon the occurrence of the Exchange Offer in accordance with the
Registration Rights Agreement, the Issuer shall issue and, upon receipt of an Authentication Order
in accordance with Section 2.02, the Trustee shall authenticate one or more

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Global Notes and/or
Physical Notes not bearing the Private Placement Legend in an aggregate principal amount equal to
the principal amount of the beneficial interests in the Initial Global Notes or Physical Notes, as
the case may be, tendered for acceptance in accordance with the Exchange Offer and accepted for
exchange in the Exchange Offer.

           (f) Restrictions on Transfer and Exchange of Global Notes. Notwithstanding any other
provisions of this Indenture, a Global Note may not be transferred as a whole except by the
Depository to a nominee of the Depository or by a nominee of the Depository to the Depository or
another nominee of the Depository or by the Depository or any such nominee to a successor
Depository or a nominee of such successor Depository.

           (g) Private Placement Legend. Upon the transfer, exchange or replacement of Notes not
bearing the Private Placement Legend unless otherwise required by applicable law, the Registrar
shall deliver Notes that do not bear the Private Placement Legend. Upon the transfer, exchange or
replacement of Notes bearing the Private Placement Legend, the Registrar shall deliver only Notes
that bear the Private Placement Legend unless (i) there is delivered to the Trustee an Opinion of
Counsel reasonably satisfactory to the Issuer and the Trustee to the effect that neither such
legend nor the related restrictions on transfer are required in order to maintain compliance with
the provisions of the Securities Act or (ii) such Note has been offered and sold (including
pursuant to the Exchange Offer) pursuant to an effective registration statement under the
Securities Act.

           (h) General. By its acceptance of any Note bearing the Private Placement Legend, each
Holder of such a Note acknowledges the restrictions on transfer of such Note set forth in this
Indenture and in the Private Placement Legend and agrees that it will transfer such Note only as
provided in this Indenture.

           The Registrar shall retain copies of all letters, notices and other written communications
received pursuant to Section 2.15 or Section 2.16. The Issuer shall have the right to inspect and
make copies of all such letters, notices or other written communications at any reasonable time
upon the giving of reasonable written notice to the Registrar.

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

           The Trustee shall have no responsibility for the actions or omissions of the Depository, or
the accuracy of the books and records of the Depository.

           (i) Cancellation and/or Adjustment of Global Note. At such time as all beneficial
interests in a particular Global Note have been exchanged for Physical Notes or a particular

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Global
Note has been redeemed, repurchased or canceled in whole and not in part, each such Global Note
shall be returned to or retained and canceled by the Trustee in accordance with Section 2.11
hereof. At any time prior to such cancellation, if any beneficial interest in a Global Note is
exchanged for or transferred to a Person who will take delivery thereof in the form of a beneficial
interest in another Global Note or for Physical Notes, the principal amount of Notes represented by
such Global Note shall be reduced accordingly and an endorsement shall be made on such Global Note
by the Trustee or by the Depositary at the direction of the Trustee to reflect such reduction; and
if the beneficial interest is being exchanged for or transferred to a Person who will take delivery
thereof in the form of a beneficial interest in another Global Note, such other Global Note shall
be increased accordingly and an endorsement shall be made on such Global Note by the Trustee or by
the Depositary at the direction of the Trustee to reflect such increase.

ARTICLE THREE

REDEMPTION

SECTION 3.01. Notices to Trustee.

           If the Issuer elects to redeem Notes pursuant to Section 5 or Section 6 of the Notes, it shall
notify the Trustee in writing of the Redemption Date, the Redemption Price and the principal amount
of Notes to be redeemed. The Issuer shall give notice of redemption to the Trustee at least 45
days but not more than 60 days before the Redemption Date (unless a shorter notice shall be agreed
to by the Trustee in writing), together with such documentation and records as shall enable the
Trustee to select the Notes to be redeemed.

SECTION 3.02. Selection of Notes To Be Redeemed.

           If less than all of the Notes are to be redeemed at any time pursuant to Sections 5 and 6 of
the Notes, the Trustee will select Notes for redemption as follows:

     (x) if the Notes are listed on a national securities exchange, in compliance with the
requirements of the principal national securities exchange on which the Notes are listed; or

     (y) if the Notes are not so listed, on a pro rata basis, by lot or by such method as
the Trustee shall deem fair and appropriate;

provided that, in the case of such redemption pursuant to Section 6 of the Notes, the Trustee will
select the Notes on a pro rata basis or on as nearly a pro rata basis as practicable (subject to
the procedures of the Depository) unless that method is otherwise prohibited.

     No Notes of $1,000 or less shall be redeemed in part.

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SECTION 3.03. Notice of Redemption.

           At least 30 days but not more than 60 days before a Redemption Date, the Issuer shall mail a
notice of redemption by first class mail, postage prepaid, to each Holder whose Notes are to be
redeemed at its registered address (except that a notice issued in connection with a redemption
referred to in Section 8.01 may be more than 60 days before such Redemption Date). At the Issuer’s
request, the Trustee shall forward the notice of redemption in the Issuer’s name and at the
Issuer’s expense. Each notice for redemption shall identify the Notes (including the CUSIP or ISIN
number) to be redeemed and shall state:

     (1) the Redemption Date;

     (2) the Redemption Price and the amount of accrued interest, if any, to be paid;

     (3) the name and address of the Paying Agent;

     (4) that Notes called for redemption must be surrendered to the Paying Agent to collect
the Redemption Price plus accrued interest, if any;

     (5) that, unless the Issuer defaults in making the redemption payment, interest on
Notes called for redemption ceases to accrue on and after the Redemption Date, and the only
remaining right of the Holders of such Notes is to receive payment of the Redemption Price
upon surrender to the Paying Agent of the Notes redeemed;

     (6) if any Note is being redeemed in part, the portion of the principal amount of such
Note to be redeemed and that, after the Redemption Date, and upon surrender and cancellation
of such Note, a new Note or Notes in aggregate principal amount equal to the unredeemed
portion thereof will be issued;

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

     (8) the Section of the Notes or this Indenture, as applicable, pursuant to which the
Notes are to be redeemed.

           The notice, if mailed in a manner herein provided, shall be conclusively presumed to have been
given, whether or not the Holder receives such notice. In any case, failure to give
such notice by mail or any defect in the notice to the Holder of any Note designated for
redemption in whole or in part shall not affect the validity of the proceedings for the redemption
of any other Note. Notices of redemption may not be conditional.

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SECTION 3.04. Effect of Notice of Redemption.

           Once notice of redemption is mailed in accordance with Section 3.03, Notes called for
redemption become due and payable on the Redemption Date and at the Redemption Price plus accrued
interest, if any. Upon surrender to the Trustee or Paying Agent, such Notes called for redemption
shall be paid at the Redemption Price (which shall include accrued interest thereon to, but not
including, the Redemption Date), but installments of interest, the maturity of which is on or prior
to the Redemption Date, shall be payable to Holders of record at the close of business on the
relevant Record Dates. On and after the Redemption Date interest shall cease to accrue on Notes or
portions thereof called for redemption unless the Issuer shall have not complied with its
obligations pursuant to Section 3.05.

SECTION 3.05. Deposit of Redemption Price.

           On or before 10:00 a.m. New York time on the Redemption Date, the Issuer shall deposit with
the Paying Agent U.S. Legal Tender sufficient to pay the Redemption Price plus accrued and unpaid
interest, if any, of all Notes to be redeemed on that date.

           If the Issuer complies with the preceding paragraph, then, unless the Issuer defaults in the
payment of such Redemption Price plus accrued interest, if any, interest on the Notes to be
redeemed will cease to accrue on and after the applicable Redemption Date, whether or not such
Notes are presented for payment.

SECTION 3.06. Notes Redeemed in Part.

           If any Note is to be redeemed in part only, the notice of redemption that relates to such Note
shall state the portion of the principal amount thereof to be redeemed. A new Note or Notes in
principal amount equal to the unredeemed portion of the original Note or Notes shall be issued in
the name of the Holder thereof upon surrender and cancellation of the original Note or Notes.

ARTICLE FOUR

COVENANTS

SECTION 4.01. Payment of Notes.

           The Issuer shall pay the principal of (and premium, if any) and interest on the Notes in the
manner provided in the Notes, the Registration Rights Agreement and this Indenture. An installment
of principal of, or interest on, the Notes shall be considered paid on the date it is due if the
Trustee or Paying Agent (other than the Issuer or an Affiliate thereof) holds on
that date U.S. Legal Tender designated for and sufficient to pay the installment. Interest on
the Notes will be computed on the basis of a 360-day year comprised of twelve 30-day months.

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           The Issuer shall pay interest on overdue principal (including, without limitation, post
petition interest in a proceeding under any Bankruptcy Law), and overdue interest, to the extent
lawful, at the same rate per annum borne by the Notes.

SECTION 4.02. Maintenance of Office or Agency.

           The Issuer shall maintain in the Borough of Manhattan, The City of New York, the office or
agency required under Section 2.03 (which may be an office of the Trustee or an affiliate of the
Trustee or Registrar). The Issuer shall give prompt written notice to the Trustee of the location,
and any change in the location, of such office or agency. If at any time the Issuer 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 address
of the Trustee set forth in Section 12.02.

           The Issuer 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. The Issuer 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 Issuer hereby initially designates The Bank of New York, located at 101 Barclay Street,
New York, New York 10286, Lobby Level, Attn: Corporate Trust, as such office of the Issuer in
accordance with Section 2.03 or any other office designated by the Trustee.

SECTION 4.03. Corporate Existence.

           Except as otherwise permitted by Article Five, the Issuer shall do or cause to be done all
things necessary to preserve and keep in full force and effect its corporate existence and the
corporate, partnership or other existence of each of its Restricted Subsidiaries in accordance with
the respective organizational documents of each such Restricted Subsidiary and the material rights
(charter and statutory) and material franchises of the Issuer and each of its Restricted
Subsidiaries; provided, however, that the Issuer shall not be required to preserve any such right,
franchise or corporate existence with respect to itself or any Restricted Subsidiary if the Board
of Directors shall determine that the preservation thereof is no longer desirable in the conduct of
the business of the Issuer and its Restricted Subsidiaries, taken as a whole, and that the loss
thereof is not adverse in any material respect to the Holders of the Notes.

SECTION 4.04. Payment of Taxes.

           The Issuer shall, and shall cause each of the Restricted Subsidiaries to, pay or discharge or
cause to be paid or discharged, before the same shall become delinquent, (a) all material taxes,
assessments and governmental charges levied or imposed upon it or any of the Restricted
Subsidiaries or upon the income, profits or property of it or any of the Restricted Sub
sidiaries and (b) all lawful claims for labor, materials and supplies which, in each case, if
unpaid, might by law become a material liability or Lien upon the property of it or any of the
Restricted Subsidiaries; provided, however, that neither the Issuer nor any of the Restricted
Subsidiaries

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shall be required to pay or discharge or cause to be paid or discharged any such tax,
assessment, charge or claim whose amount the applicability or validity is being contested in good
faith by appropriate actions and for which appropriate provision has been made.

SECTION 4.05. [Intentionally Omitted]

SECTION 4.06. Compliance Certificate; Notice of Default.

           (a) The Issuer shall deliver to the Trustee, within 120 days after the close of each fiscal
year, an Officers’ Certificate stating that a review of the activities of the Issuer and its
Subsidiaries has been made under the supervision of the signing Officers with a view to determining
whether the Issuer and the Guarantors have kept, observed, performed and fulfilled their
obligations under this Indenture and further stating, as to each such Officer signing such
certificate, that to the best of such Officer’s knowledge, the Issuer and the Guarantors during
such preceding fiscal year has kept, observed, performed and fulfilled each and every such covenant
and no Default occurred during such year and at the date of such certificate there is no Default
that has occurred and is continuing or, if such signers do know of such Default, the certificate
shall specify such Default and what action, if any, the Issuer is taking or proposes to take with
respect thereto. The Officers’ Certificate shall also notify the Trustee should the Issuer elect
to change the manner in which it fixes the fiscal year end.

           (b) The Issuer shall deliver to the Trustee promptly and in any event within five days after
the Issuer becomes aware of the occurrence of any Default an Officers’ Certificate specifying the
Default and what action, if any, the Issuer is taking or proposes to take with respect thereto.

SECTION 4.07. [Intentionally Omitted]

SECTION 4.08. Waiver of Stay, Extension or Usury Laws.

           The Issuer and each Guarantor covenants (to the extent permitted by applicable law) that it
will not at any time insist upon, plead, or in any manner whatsoever claim or take the benefit or
advantage of, any stay or extension law or any usury law or other law that would prohibit or
forgive such Issuer or such Guarantor from paying all or any portion of the principal of and/or
interest on the Notes or the Note Guarantee of any such Guarantor 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 (to the extent permitted by applicable law) each hereby
expressly waives all benefit or advantage of any such law, and covenants that it will not hinder,
delay or impede the execution of any power herein granted to the Trustee, but will suffer and
permit the execution of every such power as though no such law had been enacted.

SECTION 4.09. Change of Control.

           Upon the occurrence of any Change of Control, each Holder of Notes will have the right to
require the Issuer to repurchase all or any part (equal to $1,000 principal amount or an integral
multiple thereof in the case of any partial repurchase) of that Holder’s Notes pursuant

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to a Change
of Control Offer (the “Change of Control Offer”). In the Change of Control Offer, the Issuer will
offer to pay an amount in cash (the “Change of Control Purchase Price”) equal to 101% of the
aggregate principal amount of Notes purchased, plus accrued and unpaid interest thereon, if any, to
the date of purchase. Within 60 days following any Change of Control, the Issuer will mail, or
cause to be mailed, a notice to each Holder describing the transaction or transactions that
constitute the Change of Control and offering to purchase Notes on the date (the “Change of Control
Payment Date”) specified in such notice, which date shall be a Business Day no earlier than 30 days
and no later than 60 days from the date such notice is mailed, pursuant to the procedures described
below. Such notice shall state:

     (1) that the Change of Control Offer is being made pursuant to this Section 4.09 and
that all Notes tendered and not withdrawn will be accepted for payment;

     (2) the purchase price (including the amount of accrued interest) and the Change of
Control Payment Date;

     (3) that any Note not tendered will continue to accrue interest;

     (4) that, unless the Issuer defaults in making payment therefor, any Note accepted for
payment pursuant to the Change of Control Offer shall cease to accrue interest after the
Change of Control Payment Date;

     (5) that Holders electing to have a Note purchased pursuant to a Change of Control
Offer will be required to surrender the Note, with the form entitled “Option of Holder To
Elect Purchase” on the reverse of the Note completed, to the Paying Agent at the address
specified in the notice prior to the close of business on the third Business Day prior to
the Change of Control Payment Date;

     (6) that Holders will be entitled to withdraw their election if the Paying Agent
receives, not later than the second Business Day prior to the Change of Control Payment
Date, a telegram, facsimile transmission or letter setting forth the name of the Holder, the
principal amount of the Notes the Holder delivered for purchase and a statement that such
Holder is withdrawing his election to have such Note purchased;

     (7) that Holders whose Notes are purchased only in part will be issued new Notes in a
principal amount equal to the unpurchased portion of the Notes surrendered (equal to $1,000
or an integral multiple thereof); and

     (8) the circumstances and relevant facts regarding such Change of Control.

           On or before the Change of Control Payment Date, the Issuer will, to the extent lawful:

     (i) accept for payment all Notes or portions thereof properly tendered pursuant to the
Change of Control Offer;

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     (ii) deposit with the Paying Agent U.S. Legal Tender sufficient to pay the Change of
Control Purchase Price in respect of all Notes or portions thereof so tendered; and

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

           The Paying Agent will promptly mail to each Holder of Notes so tendered the Change of Control
Purchase Price for such Notes, and the Trustee will promptly authenticate and mail (or cause to be
transferred by book entry) to each Holder a new Note equal in principal amount to any unpurchased
portion of the Notes surrendered, if any.

           The Issuer will publicly announce the results of the Change of Control Offer on or as soon as
practicable after the Change of Control Payment Date.

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

           The Issuer shall cause the Change of Control Offer to remain open for at least 20 Business
Days or for such longer period as may be required by law. The Issuer will comply, and will cause
any third party making a Change of Control Offer to comply, with the requirements of Rule 14e-1
under the Exchange Act and any other securities laws and regulations thereunder to the extent such
laws and regulations are applicable in connection with a Change of Control Offer. To the extent
the provisions of any applicable securities laws or regulations conflict with the provisions of
this Section 4.09, the Issuer will not be deemed to have breached their obligations under this
Section 4.09 by virtue of complying with such laws or regulations.

SECTION 4.10. Limitations on Additional Indebtedness.

           (a) The Issuer will not, and will not permit any Restricted Subsidiary to, directly or
indirectly, incur any Indebtedness; provided that (i) the Issuer or any Restricted Subsidiary of
the Issuer (other than CPI and any of its Restricted Subsidiaries) may incur additional
Indebtedness if, after giving effect thereto, the Issuer’s Consolidated Leverage Ratio would not
exceed 6.50 to 1.00 (the “Issuer Leverage Ratio Exception”) and (ii) CPI or any of its Restricted
Subsidiaries may incur additional Indebtedness if, after giving effect thereto, CPI’s Consolidated
Interest Coverage Ratio (calculated by replacing the references to the Issuer in the rele
vant definitions with CPI and its Restricted Subsidiaries) would be at least 2.00 to 1.00 (the
“CPI Coverage Ratio Exception”).

           (b) Notwithstanding Section 4.10(a), each of the following shall be permitted (the “Permitted
Indebtedness”):

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     (1) Indebtedness of the Issuer or any of the Restricted Subsidiaries under the Credit
Facilities in an aggregate amount at any time outstanding not to exceed $90.0 million, less,
to the extent a permanent repayment and/or commitment reduction is required thereunder as a
result of such application, the aggregate amount of Net Available Proceeds applied to
repayments under the Credit Facilities in accordance with Section 4.13(d) plus the greater
of (x) $40.0 million and (y) the sum of (i) 85% of the book value of the accounts receivable
plus (ii) 65% of the book value of inventory of the Issuer and the Restricted Subsidiaries,
calculated on a consolidated basis and in accordance with GAAP;

     (2) the Notes issued on the Issue Date, the Exchange Notes to be issued pursuant to the
Registration Rights Agreement and Additional Notes issued from time to time in payment of
accrued interest on the Notes;

     (3) Indebtedness of the Issuer and the Restricted Subsidiaries to the extent
outstanding on the Issue Date (other than Indebtedness referred to in clauses (1) and (2)
above);

     (4) Indebtedness under Hedging Obligations entered into in the ordinary course of
business for bona fide hedging purposes and not for the purpose of speculation; provided
that if such Hedging Obligations relate to interest rates, (a) such Hedging Obligations
relate to payment obligations on Indebtedness otherwise permitted to be incurred by this
Section 4.10 and (b) the notional principal amount of such Hedging Obligations at the time
incurred does not exceed the principal amount of the Indebtedness to which such Hedging
Obligations relate;

     (5) Indebtedness of the Issuer owed to a Restricted Subsidiary and Indebtedness of any
Restricted Subsidiary owed to the Issuer or any other Restricted Subsidiary; provided,
however, that upon any such Restricted Subsidiary ceasing to be a Restricted Subsidiary or
such Indebtedness being owed to any Person other than the Issuer or a Restricted Subsidiary,
the Issuer or such Restricted Subsidiary, as applicable, shall be deemed to have incurred
Indebtedness not permitted by this clause (5);

     (6) Indebtedness in respect of bid, performance or surety bonds issued for the account
of the Issuer or any Restricted Subsidiary in the ordinary course of business, including
guarantees or obligations of the Issuer or any Restricted Subsidiary with respect to letters
of credit supporting such bid, performance or surety obligations (in each case other than
for an obligation for money borrowed);

     (7) Purchase Money Indebtedness incurred by the Issuer or any Restricted Subsidiary,
and Refinancing Indebtedness thereof, in an aggregate amount not to exceed at any time
outstanding $20.0 million;

     (8) Indebtedness arising from the honoring by a bank or other financial institution of
a check, draft or similar instrument inadvertently (except in the case of daylight
overdrafts) drawn against insufficient funds in the ordinary course of business; provided,

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however, that such Indebtedness is extinguished within fifteen Business Days of incurrence;

     (9) Indebtedness arising in connection with endorsement of instruments for deposit in
the ordinary course of business;

     (10) Refinancing Indebtedness with respect to Indebtedness incurred pursuant to the
Coverage Ratio Exception or clause (2) or (3) above or (12) below;

     (11) Indebtedness of the Issuer or a Restricted Subsidiary arising in connection with
the sale, remediation or relocation work at San Carlos not to exceed $20.0 million at any
time outstanding; provided that such Indebtedness shall be extinguished upon the
consummation of the sale of San Carlos;

     (12) Indebtedness of Foreign Subsidiaries; provided that at the time of incurrence of
Indebtedness under this clause (12) and after giving effect thereto, Consolidated Interest
Coverage Ratio of the Foreign Subsidiaries (calculated by replacing the references to the
Issuer in the relevant definitions to all Foreign Subsidiaries) is at least 2.00 to 1.00;
and

     (13) Indebtedness of the Issuer or any Restricted Subsidiary in an aggregate amount not
to exceed $30.0 million at any time outstanding.

           (c) For purposes of determining compliance with this Section 4.10, in the event that an item
of Indebtedness meets the criteria of more than one of the categories of Permitted Indebtedness
described in clauses (1) through (13) of Section 4.10(b) or is entitled to be incurred pursuant to
the Coverage Ratio Exception, the Issuer shall in its sole discretion, classify such item of
Indebtedness and may divide and classify such Indebtedness in more than one of the types of
Indebtedness described, except that Indebtedness incurred under the Credit Facilities on the Issue
Date shall be deemed to have been incurred under clause (1) of Section 4.10(b) and may later
reclassify any item of Indebtedness described in clauses (1) through (13) above (provided that at
the time of reclassification it meets the criteria in such category or categories). In addition,
for purposes of determining any particular amount of Indebtedness under this Section 4.10,
guarantees, Liens or letter of credit obligations supporting Indebtedness otherwise included in the
determination of such particular amount shall not be included so long as incurred by a Person that
could have incurred such Indebtedness.

SECTION 4.11. Limitations on Restricted Payments.

           (a) The Issuer will not, and will not permit any Restricted Subsidiary to, directly or
indirectly, make any Restricted Payment if at the time of such Restricted Payment:

     (1) a Default shall have occurred and be continuing or shall occur as a consequence
thereof;

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     (2) (A) with respect to a Restricted Payment by the Issuer or any Restricted Subsidiary
of the Issuer (other than CPI and its Restricted Subsidiaries), immediately after giving
effect to such transaction on a pro forma basis, the Issuer could not incur $1.00 of
additional Indebtedness pursuant to the Issuer Leverage Ratio Exception or (B) with respect
to a Restricted Payment by CPI. or any Restricted Subsidiary of CPI, immediately after
giving effect to such transaction on a pro forma basis, CPI could not incur at least $1.00
of additional Indebtedness pursuant to the CPI Coverage Ratio Exception (calculated by
replacing the references to the Issuer in the relevant definitions with CPI and its
Restricted Subsidiaries); or

     (3) the amount of such Restricted Payment, when added to the aggregate amount of all
other Restricted Payments made after January 23, 2004 (other than Restricted Payments made
pursuant to clause (2), (3), (4), (5), (6) or (7) of Section 4.11(b)), exceeds the sum (the
“Restricted Payments Basket”) of (without duplication):

     (a) 50% of Consolidated Net Income for the period (taken as one accounting
period) commencing on January 1, 2004 to and including the last day of the fiscal
quarter ended immediately prior to the date of such calculation for which
consolidated financial statements are available (or, if such Consolidated Net Income
shall be a deficit, minus 100% of such aggregate deficit); plus

     (b) 100% of the aggregate net proceeds, including cash and the Fair Market
Value of property other than cash, received by the Issuer either (x) as
contributions to the common equity of the Issuer after January 23, 2004, or (y) from
the issuance and sale of Qualified Equity Interests after January 23, 2004, other
than any such proceeds which are used to redeem Notes in accordance with Section 6
of the Notes; plus

     (c) the aggregate amount by which Indebtedness (other than any Subordinated
Indebtedness) incurred by the Issuer or any Restricted Subsidiary subsequent to
January 23, 2004 is reduced on the Issuer’s balance sheet upon the conversion or
exchange (other than by a Subsidiary of the Issuer) into Qualified Equity Interests
(less the amount of any cash, or the fair value of assets, distributed by the Issuer
or any Restricted Subsidiary upon such conversion or exchange); plus

     (d) in the case of the disposition or repayment of or return on any Investment
that was treated as a Restricted Payment made after January 23, 2004,
an amount (to the extent not included in the computation of Consolidated Net
Income) equal to the lesser of (i) 100% of the aggregate amount received by the
Issuer or any Restricted Subsidiary in cash or other property (valued at the Fair
Market Value thereof) as the return of capital with respect to such Investment and
(ii) the amount of such Investment that was treated as a Restricted Payment, in
either case, less the cost of the disposition of such Investment and net of taxes;
plus

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     (e) upon a Redesignation of an Unrestricted Subsidiary as a Restricted
Subsidiary the lesser of (i) the Fair Market Value of the Issuer’s proportionate
interest in such Subsidiary immediately following such Redesignation and (ii) the
aggregate amount of the Issuer’s Investments in such Subsidiary to the extent such
Investments reduced the Restricted Payments Basket and were not previously repaid or
otherwise reduced.

           (b) The foregoing provisions will not prohibit:

     (1) the payment by the Issuer or any Restricted Subsidiary of any dividend within 60
days after the date of declaration thereof, if on the date of declaration the payment would
have complied with the provisions of this Indenture;

     (2) the redemption of any Equity Interests of the Issuer or any Restricted Subsidiary
in exchange for, or out of the proceeds of the substantially concurrent issuance and sale
of, Qualified Equity Interests;

     (3) the redemption of Subordinated Indebtedness of the Issuer or any Restricted
Subsidiary (a) in exchange for, or out of the proceeds of the substantially concurrent
issuance and sale of, Qualified Equity Interests; (b) in exchange for, or out of the
proceeds of the substantially concurrent incurrence of, Refinancing Indebtedness permitted
to be incurred under Section 4.10 and the other terms of this Indenture; or (c) upon a
Change of Control or in connection with an Asset Sale to the extent required by the
agreement governing such Subordinated Indebtedness but only if the Issuer shall have
complied with Section 4.09 and Section 4.13 and purchased all Notes validly tendered
pursuant to the relevant offer prior to purchasing or repaying such Subordinated
Indebtedness;

     (4) payments (a) by the Issuer or (b) to any direct or indirect parent company of the
Issuer to permit such parent company, and which are used by such parent company, to redeem
Equity Interests of the Issuer or such parent company held by officers, directors or
employees or former officers, directors or employees (or their transferees, estates or
beneficiaries under their estates) of the Issuer or any of the Restricted Subsidiaries, upon
their death, disability, retirement, severance or termination of employment or service;
provided that the aggregate cash consideration paid for all such redemptions shall not
exceed $2.0 million during any calendar year (with unused amounts in any calendar year being
usable, without duplication, in subsequent calendar years, provided that not more than $4.0
million of unused amounts from previous calendar years may be utilized in any single
calendar year);

     (5) payments, distributions or Investments permitted pursuant to clauses (2), (3) and
(4) of Section 4.14(b);

     (6) repurchases of Equity Interests deemed to occur upon the exercise of stock options
or warrants if the Equity Interests represent a portion of the exercise price thereof;

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     (7) the declaration or payment of dividends or distributions or other payments to
stockholders and optionholders of the Issuer, or repurchases of Equity Interests of the
Issuer, with the net proceeds received by the Issuer from the sale of the Notes on the Issue
Date; or

     (8) other Restricted Payments in an aggregate amount not to exceed $30.0 million;

provided that (a) in the case of any Restricted Payment pursuant to clause (2), (3) or (4) above,
no Default shall have occurred and be continuing or occur as a consequence thereof and (b) to the
extent the issuance and sale of Qualified Equity Interests are used to make a payment pursuant to
clause (2) or (3) above, such issuance and sale shall not increase the Restricted Payments Basket.

SECTION 4.12. Limitations on Liens.

           The Issuer shall not, and shall not permit any Restricted Subsidiary to, directly or
indirectly, create, incur, assume or permit or suffer to exist any Lien of any nature whatsoever
against any assets of the Issuer or any Restricted Subsidiary (including Equity Interests of a
Restricted Subsidiary), whether owned at the Issue Date or thereafter acquired, or any proceeds
therefrom, or assign or otherwise convey any right to receive income or profits therefrom securing
any Indebtedness (other than Permitted Liens), unless contemporaneously therewith:

     (1) in the case of any Lien securing an obligation that ranks pari passu with the Notes
or a Note Guarantee, effective provision is made to secure the Notes or such Note Guarantee,
as the case may be, at least equally and ratably with or prior to such obligation with a
Lien on the same collateral; and

     (2) in the case of any Lien securing an obligation that is subordinated in right of
payment to the Notes or a Note Guarantee, effective provision is made to secure the Notes or
such Note Guarantee, as the case may be, with a Lien on the same collateral that is prior to
the Lien securing such subordinated obligation,

in each case, for so long as such obligation is secured by such Lien.

SECTION 4.13. Limitations on Asset Sales.

           (a) The Issuer will not, and will not permit any Restricted Subsidiary to, directly or
indirectly, consummate any Asset Sale unless:

     (1) the Issuer or such Restricted Subsidiary receives consideration at the time of such
Asset Sale at least equal to the Fair Market Value of the assets included in such Asset
Sale; and

     (2) at least 75% of the total consideration received in such Asset Sale consists of
cash or Cash Equivalents.

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           (b) For purposes of clause (2) of Section 4.13(a), the following shall be deemed to be cash:

     (1) the amount (without duplication) of any Indebtedness (other than Subordinated
Indebtedness) of the Issuer or such Restricted Subsidiary that is expressly assumed by the
transferee in such Asset Sale and with respect to which the Issuer or such Restricted
Subsidiary, as the case may be, is unconditionally released by the holder of such
Indebtedness,

     (2) the amount of any obligations received from such transferee that are within 30 days
converted by the Issuer or such Restricted Subsidiary to cash (to the extent of the cash
actually so received), and

     (3) the Fair Market Value of (i) any assets (other than securities) received by the
Issuer or any Restricted Subsidiary to be used by it in a Permitted Business, (ii) Equity
Interests in a Person that is a Restricted Subsidiary or in a Person engaged in a Permitted
Business that shall become a Restricted Subsidiary immediately upon the acquisition of such
Person by the Issuer or (iii) a combination of (i) and (ii).

           (c) If at any time any non-cash consideration received by the Issuer or any Restricted
Subsidiary of the Issuer, as the case may be, in connection with any Asset Sale is repaid or
converted into or sold or otherwise disposed of for cash (other than interest received with respect
to any such non-cash consideration), then the date of such repayment, conversion or disposition
shall be deemed to constitute the date of an Asset Sale hereunder and the Net Available Proceeds
thereof shall be applied in accordance with this Section 4.13.

           (d) If the Issuer or any Restricted Subsidiary engages in an Asset Sale, the Issuer or such
Restricted Subsidiary shall, no later than 395 days following the consummation thereof, apply all
or any of the Net Available Proceeds therefrom to:

     (1) repay Indebtedness of a Restricted Subsidiary, and in the case of any such
repayment under any revolving credit facility, effect a permanent reduction in the
availability under such revolving credit facility;

     (2) repay any Indebtedness which was secured by the assets sold in such Asset Sale;
and/or

     (3) (A) invest all or any part of the Net Available Proceeds thereof in the purchase of
assets (other than securities) to be used by the Issuer or any Restricted Subsidi
ary in the Permitted Business, (B) acquire Equity Interests in a Person that is a
Restricted Subsidiary or in a Person engaged in a Permitted Business that shall become a
Restricted Subsidiary immediately upon the consummation of such acquisition or (C) a
combination of (A) and (B).

The amount of Net Available Proceeds not applied or invested as provided in this paragraph will
constitute “Excess Proceeds.”

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           (e) When the aggregate amount of Excess Proceeds equals or exceeds $15.0 million, the Issuer
will be required to make an offer to purchase from all Holders and, if applicable, redeem (or make
an offer to do so) any Pari Passu Indebtedness of the Issuer the provisions of which require the
Issuer to redeem such Indebtedness with the proceeds from any Asset Sales (or offer to do so), in
an aggregate principal amount of Notes and such Pari Passu Indebtedness equal to the amount of such
Excess Proceeds as follows:

     (1) the Issuer will (a) make an offer to purchase (a “Net Proceeds Offer”) to all
Holders in accordance with the procedures set forth below, and (b) redeem (or make an offer
to do so) any such other Pari Passu Indebtedness, pro rata in proportion to the respective
principal amount of the Notes and such other Indebtedness required to be redeemed, the
maximum principal amount of Notes and Pari Passu Indebtedness that may be redeemed out of
the amount (the “Payment Amount”) of such Excess Proceeds;

     (2) the offer price for the Notes will be payable in cash in an amount equal to 100% of
the principal amount of the Notes tendered pursuant to a Net Proceeds Offer, plus accrued
and unpaid interest thereon, if any, to the date such Net Proceeds Offer is consummated (the
“Offered Price”), in accordance with the procedures set forth in this Indenture and the
redemption price for such Pari Passu Indebtedness (the “Pari Passu Indebtedness Price”)
shall be as set forth in the related documentation governing such Indebtedness;

     (3) if the aggregate Offered Price of Notes validly tendered and not withdrawn by
Holders thereof exceeds the pro rata portion of the Payment Amount allocable to the Notes,
Notes to be purchased will be selected on a pro rata basis; and

     (4) upon completion of such Net Proceeds Offer in accordance with the foregoing
provisions, the amount of Excess Proceeds with respect to which such Net Proceeds Offer was
made shall be deemed to be zero,

provided, however, that, notwithstanding the foregoing, in the case of an Asset Sale by a
Restricted Subsidiary of the Issuer, the Issuer shall not be required to make a Net Proceeds Offer
to the extent such Restricted Subsidiary is not permitted pursuant to the terms of its outstanding
Indebtedness or applicable law to make such Net Available Proceeds available to the Issuer to fund
such Net Proceeds Offer. For the avoidance of doubt, the Issuer may make the Net Proceeds Offer
and redeem Pari Passu Indebtedness in accordance with the foregoing at any time following an Asset
Sale (and need not wait for the 395-day period referred to above to elapse).

           (f) To the extent that the sum of the aggregate Offered Price of Notes tendered pursuant to a
Net Proceeds Offer and the aggregate Pari Passu Indebtedness Price paid to the holders of such Pari
Passu Indebtedness is less than the Payment Amount relating thereto (such shortfall constituting a
“Net Proceeds Deficiency”), the Issuer may use the Net Proceeds Deficiency, or a portion thereof,
for general corporate purposes, subject to the provisions of this Indenture.

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           (g) In the event of the transfer of substantially all (but not all) of the assets of the
Issuer and the Restricted Subsidiaries as an entirety to a Person in a transaction covered by and
effected in accordance with Article Five, the successor shall be deemed to have sold for cash at
Fair Market Value the assets of the Issuer and the Restricted Subsidiaries not so transferred for
purposes of this Section 4.13, and the successor shall comply with the provisions of this Section
4.13 with respect to such deemed sale as if it were an Asset Sale (with such Fair Market Value
being deemed to be Net Available Proceeds for such purpose).

           (h) Upon the commencement of a Net Proceeds Offer, the Issuer shall send, by first class mail,
a notice to the Trustee and to each Holder at is registered address. The notice shall contain all
instructions and materials necessary to enable such Holder to tender Notes pursuant to the Net
Proceeds Offer. Any Net Proceeds Offer shall be made to all Holders. The notice, which shall
govern the terms of the Net Proceeds Offer, shall state:

     (1) that the Net Proceeds Offer is being made pursuant to this Section;

     (2) the Payment Amount, the Offered Price, and the date on which Notes tendered and
accepted for payment shall be purchased, which date shall be at least 30 days and not later
than 60 days from the date such notices is mailed (the “Net Proceeds Payment Date”);

     (3) that any Notes not tendered or accepted for payment shall continue to accrue
interest;

     (4) that, unless the Issuer defaults in making such payment, any Notes accepted for
payment pursuant to the Net Proceeds Offer shall cease to accrue interest on and after the
Net Proceeds Payment Date;

     (5) that Holders electing to have any Notes purchased pursuant to any Net Proceeds
Offer shall be required to surrender the Notes, with the form entitled “Option of Holder To
Elect Purchase” on the reverse of the Note completed, or transfer by book-entry transfer, to
the Issuer, a depository, if appointed by the Issuer, or the Paying Agent at the address
specified in the notice at least three days before the Net Proceeds Payment Date;

     (6) that Holders shall be entitled to withdraw their election if the Issuer, the
Depository or the Paying Agent, as the case may be, receives, not later than the Net
Proceeds Payment Date, a notice setting forth the name of the Holder, the principal amount
of the Note the Holder delivered for purchase and a statement that such Holder is
withdrawing his election to have such Note purchased;

     (7) that if the aggregate principal amount of Notes surrendered by Holders exceeds the
Payment Amount, the Issuer shall select the Notes to be purchased on a pro rata basis (with
such adjustments as may be deemed appropriate by the Issuer so that only Notes in
denominations of $1,000, or integral multiples thereof, shall be purchased); and

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     (8) that Holders whose Notes were purchased only in part shall be issued new Notes
equal in principal amount to the unpurchased portion of the Notes surrendered (or
transferred by book-entry).

           (i) On the Net Proceeds Payment Date, the Issuer shall, to the extent lawful: (1) accept for
payment all Notes or portions thereof properly tendered pursuant to the Net Proceeds Offer, subject
to pro ration if the aggregate Notes tendered exceed the Payment Amount allocable to the Notes; (2)
deposit with the Paying Agent U.S. Legal Tender equal to the lesser of the Payment Amount allocable
to the Notes and the amount sufficient to pay the Offered Price in respect of all Notes or portions
thereof so tendered; and (3) deliver or cause to be delivered to the Trustee the Notes so accepted
together with an Officers’ Certificate stating the aggregate principal amount of Notes or portions
thereof being repurchased by the Issuer. The Issuer shall publicly announce the results of the Net
Proceeds Offer on the Net Proceeds Payment Date.

           (j) The Paying Agent shall promptly mail to each Holder of Notes so tendered the Offered Price
for such Notes, and the Trustee shall promptly authenticate pursuant to an Authentication Order and
mail (or cause to be transferred by book-entry) to each Holder a new Note equal in principal amount
to any unrepurchased portion of the Notes surrendered, if any. However, if the Net Proceeds
Payment Date is on or after an interest record date and on or before the related Interest Payment
Date, any accrued and unpaid interest shall be paid to the Person in whose name a Note is
registered at the close of business on such record date, and no additional interest shall be
payable to Holders who tender Notes pursuant to the Net Proceeds Offer.

           (k) The Issuer will comply with applicable tender offer rules, including the requirements of
Rule 14e-1 under the Exchange Act and any other applicable laws and regulations in connection with
the purchase of Notes pursuant to a Net Proceeds Offer. To the extent that the provisions of any
securities laws or regulations conflict with the provisions of this Section 4.13, the Issuer shall
comply with the applicable securities laws and regulations and will not be deemed to have breached
its obligations under this Section 4.13 by virtue of this compliance.

SECTION 4.14. Limitations on Transactions with Affiliates.

           (a) The Issuer will not, and will not permit any Restricted Subsidiary to, directly or
indirectly, in one transaction or a series of related transactions, sell, lease, transfer or
otherwise dispose of any of its assets to, or purchase any assets from, or enter into any contract,
agreement, understanding, loan, advance or guarantee with, or for the benefit of, any Affiliate (an
“Affiliate Transaction”), unless:

     (1) such Affiliate Transaction is on terms that are not materially less favorable to
the Issuer or the relevant Restricted Subsidiary than those that would have been obtained in
a comparable transaction at such time on an arm’s-length basis by the Issuer or that
Restricted Subsidiary from a Person that is not an Affiliate of the Issuer or that
Restricted Subsidiary; and

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     (2) the Issuer delivers to the Trustee:

     (x) with respect to any Affiliate Transaction involving aggregate value in
excess of $5.0 million, an Officers’ Certificate certifying that such Affiliate
Transaction complies with clause (1) above and a Secretary’s Certificate which sets
forth and authenticates a resolution that has been adopted by the Independent
Directors approving such Affiliate Transaction; and

     (y) with respect to any Affiliate Transaction involving aggregate value of
$25.0 million or more, the certificates described in the preceding clause (x) and a
written opinion as to the fairness of such Affiliate Transaction to the Issuer or
such Restricted Subsidiary from a financial point of view issued by an Independent
Financial Advisor.

           (b) The foregoing restrictions shall not apply to:

     (1) transactions exclusively between or among (a) the Issuer and one or more Restricted
Subsidiaries or (b) Restricted Subsidiaries; provided, in each case, that no Affiliate of
the Issuer (other than another Restricted Subsidiary) owns Equity Interests of any such
Restricted Subsidiary;

     (2) reasonable director, officer and employee compensation (including bonuses) and
other benefits (including retirement, health, stock option and other benefit plans) and
indemnification arrangements, in each case approved by the Independent Directors, and
payments to any Person of which the Issuer is a direct or indirect wholly-owned subsidiary
or on behalf of such Person to pay such amounts incurred by such Person;

     (3) payments by the Issuer and/or one or more Subsidiaries to any other Person with
which the Issuer or such Subsidiaries are required or permitted to file a consolidated tax
return or with which the Issuer or such Subsidiaries are part of a consolidated group for
tax purposes, to be used by such Person to pay taxes, and which payments by the Issuer and
such Subsidiaries are not in excess of the tax liabilities that would have been payable by
them on a stand-alone basis;

     (4) payments by the Issuer to or on behalf of any direct or indirect parent company of
the Issuer in an amount sufficient to pay out-of-pocket legal, accounting and filing costs,
franchise taxes and other fees required to maintain the corporate existence of such parent
company actually incurred by such parent company, in any case in an aggregate amount not to
exceed $1.0 million in any calendar year;

     (5) loans and advances permitted by clause (3) of the definition of “Permitted
Investments”;

     (6) any Restricted Payments which are made in accordance with Section 4.11;

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     (7) any transaction with an Affiliate where the only consideration paid by the Issuer
or any Restricted Subsidiary is Qualified Equity Interests; or

     (8) payments by the Issuer or any of its Restricted Subsidiaries on behalf of any
direct or indirect parent company of the Issuer to Sponsor and its Control Investment
Affiliates for any (a) management, consulting, monitoring or advisory fees and expenses not
in excess of $1.0 million per annum and (b) transaction fees and expenses not in excess of
2% of the value of the transaction for which such transaction fees and expenses are being
paid.

SECTION 4.15. Limitations on Dividend and Other Restrictions Affecting
Restricted Subsidiaries.

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

     (a) pay dividends or make any other distributions on or in respect of its Equity
Interests;

     (b) make loans or advances or pay any Indebtedness or other obligation owed to the
Issuer or any other Restricted Subsidiary; or

     (c) transfer any of its assets to the Issuer or any other Restricted Subsidiary;

     except for:

     (1) encumbrances or restrictions existing under or by reason of applicable law;

     (2) encumbrances or restrictions existing under this Indenture and the Notes;

     (3) non-assignment provisions of any contract or any lease entered into in the
ordinary course of business;

     (4) encumbrances or restrictions existing under agreements existing on the date
of this Indenture (including, without limitation, the Credit Facilities, CPI’s 8%
senior subordinated notes due 2012, the indenture governing such notes and the
guarantees of such notes) as in effect on that date;

     (5) restrictions on the transfer of assets subject to any Lien permitted under
this Indenture imposed by the holder of such Lien;

     (6) restrictions on the transfer of assets imposed under any agreement to sell
such assets permitted under this Indenture to any Person pending the closing of such
sale;

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     (7) any instrument governing Acquired Indebtedness, which encumbrance or
restriction is not applicable to any Person, or the properties or assets of any
Person, other than the Person or the properties or assets of the Person so acquired;

     (8) any other agreement governing Indebtedness entered into after the Issue
Date; provided that such encumbrances and restrictions contained therein (a) are not
materially more restrictive than those in effect on the Issue Date pursuant to
agreements in effect on the Issue Date or (b) do not prohibit (except upon a default
or event of default thereunder or, if after giving effect to any such dividend, a
default or event of default would occur thereunder) the payment of dividends in an
amount sufficient, as determined by the Board of Directors of the Issuer, in its
reasonable and good faith judgment, to make scheduled cash payments on the Notes
when due;

     (9) customary provisions in partnership agreements, limited liability company
organizational governance documents, joint venture agreements and other similar
agreements entered into in the ordinary course of business that restrict the
transfer of ownership interests in such partnership, limited liability company,
joint venture or similar Person;

     (10) Purchase Money Indebtedness incurred in compliance with Section 4.10, that
impose restrictions of the nature described in clause (c) above on the assets
acquired;

     (11) encumbrances or restrictions contained in Indebtedness of Foreign
Subsidiaries permitted to be incurred under this Indenture; provided that any such
encumbrances or restrictions are ordinary and customary with respect to the type of
Indebtedness being incurred under the relevant circumstances and do not, in the good
faith judgment of the Board of Directors of the Issuer, materially impair the
Issuer’s ability to make payment on the Notes when due; and

     (12) any encumbrances or restrictions imposed by any amendments or refinancings
of the contracts, instruments or obligations referred to in clauses (1) through (11)
above; provided that such amendments or refinancings are, in the good faith judgment
of the Issuer’s Board of Directors, no more materially restrictive with respect to
such encumbrances and restrictions than those prior to such amendment or
refinancing.

SECTION 4.16. Additional Note Guarantees.

           (a) If, after the Issue Date, any Restricted Subsidiary of the Issuer shall guarantee any
Indebtedness of the Issuer, then the Issuer shall cause such Restricted Subsidiary to:

     (1) execute and deliver to the Trustee a supplemental indenture in form and substance
satisfactory to the Trustee pursuant to which such Restricted Subsidiary shall

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unconditionally guarantee all of the Issuer’s obligations under the Notes and this Indenture
and, if the Exchange Offer has not been consummated or if the Shelf Registration Statement
is required to be filed (so long as it is effective), the Registration Rights Agreement; and

     (2) deliver to the Trustee one or more opinions of counsel that such supplemental
indenture (a) has been duly authorized, executed and delivered by such Restricted Subsidiary
and (b) constitutes a valid and legally binding obligation of such Restricted Subsidiary in
accordance with its terms.

Thereafter, such Restricted Subsidiary shall be a Guarantor for all purposes of this Indenture.

           (b) Notwithstanding Section 4.16(a), a Guarantor will be automatically and unconditionally
released and discharged from its obligations under its Note Guarantee, the Indenture and the
Registration Rights Agreement under the circumstances set forth in Section 11.05. The form of the
Note Guarantee is attached hereto as Exhibit F.

SECTION 4.17. [Intentionally Omitted.]

SECTION 4.18. Reports to Holders.

           Whether or not required by the SEC, so long as any Notes are outstanding, the Issuer will
furnish to the Holders of Notes, or file electronically with the SEC through the SEC’s Electronic
Data Gathering, Analysis and Retrieval System (or any successor system), within the time periods
that would be applicable to the Issuer if it were subject to Section 13(a) or 15(d) of the Exchange
Act:

     (1) all quarterly and annual financial information that would be required to be
contained in a filing with the SEC on Forms 10-Q and 10-K if the Issuer were required to
file these Forms, including a “Management’s Discussion and Analysis of Financial Condition
and Results of Operations” and, with respect to the annual information only, a report on the
annual financial statements by the Issuer’s certified independent accountants; and

     (2) all current reports that would be required to be filed with the SEC on Form 8-K if
the Issuer were required to file these reports.

           In addition, whether or not required by the SEC, the Issuer will file a copy of all of the
information and reports referred to in clauses (1) and (2) above with the SEC for public
availability within the time periods specified in the SEC’s rules and regulations (unless the
SEC will not accept the filing) and make the information available to prospective investors upon
request. The Issuer has agreed that, for so long as any Notes remain outstanding, the Issuer will
furnish to the Holders and to prospective investors, upon their request, the information required
to be delivered pursuant to Rule 144A(d)(4) under the Securities Act.

           If any direct or indirect parent company of the Issuer has complied with the reporting
requirements of Section 13(a) or 15(d) of the Exchange Act, if applicable, or has furnished

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the
Holders the reports described herein with respect to such parent company (including any
consolidating financial information required by Regulation S-X relating to the Issuer), the Issuer
shall be deemed to be in compliance with the provisions of this covenant.

           The Issuer shall not provide information to any Person or the public not otherwise authorized
to receive such information relative to performance requirements or performance contracts when such
information requires access to information classified pursuant to Executive Order 12356, April 2,
1982 (47 Federal Register 14874, April 6, 1982), or successor or predecessor orders, or the Atomic
Energy Act of 1954 (as amended). The Issuer shall not be required to acknowledge to any Person or
the public not otherwise authorized to receive such information the existence or non-existence of
work under special access or compartmented programs. Notwithstanding the foregoing, should the
Issuer withhold information permitted pursuant to this paragraph, such entity shall nonetheless use
its commercially reasonable efforts to comply with the rules and regulations of the SEC relating to
the information to be provided pursuant to the first paragraph above, but shall not be obligated to
make disclosures required by the rules and regulations of the SEC to the extent such disclosures
would conflict with the two preceding sentences.

SECTION 4.19. Limitations on Designation of Unrestricted Subsidiaries.

           (a) The Issuer may designate any Subsidiary of the Issuer as an “Unrestricted Subsidiary”
under this Indenture (a “Designation”) only if:

     (1) no Default shall have occurred and be continuing at the time of or after giving
effect to such Designation; and

     (2) the Issuer would be permitted to make, at the time of such Designation, (a) a
Permitted Investment or (b) an Investment pursuant to Section 4.11(a), in either case, in an
amount (the “Designation Amount”) equal to the Fair Market Value of the Issuer’s
proportionate interest in such Subsidiary on such date.

           (b) No Subsidiary shall be Designated as an “Unrestricted Subsidiary” unless such Subsidiary:

     (1) has no Indebtedness other than Non-Recourse Debt;

     (2) is not party to any agreement, contract, arrangement or understanding with the
Issuer or any Restricted Subsidiary unless the terms of the agreement, contract, ar
rangement or understanding are no less favorable to the Issuer or the Restricted
Subsidiary than those that might be obtained at the time from Persons who are not
Affiliates;

     (3) is a Person with respect to which neither the Issuer nor any Restricted Subsidiary
has any direct or indirect obligation (a) to subscribe for additional Equity Interests or
(b) to maintain or preserve the Person’s financial condition or to cause the Person to
achieve any specified levels of operating results; and

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     (4) has not guaranteed or otherwise directly or indirectly provided credit support for
any Indebtedness of the Issuer or any Restricted Subsidiary, except for any guarantee given
solely to support the pledge by the Issuer or any Restricted Subsidiary of the Equity
Interests of such Unrestricted Subsidiary, which guarantee is not recourse to the Issuer or
any Restricted Subsidiary.

           (c) If, at any time, any Unrestricted Subsidiary fails to meet the requirements of Sections
4.19(a) and (b) as an Unrestricted Subsidiary, it shall thereafter cease to be an Unrestricted
Subsidiary for purposes of this Indenture and any Indebtedness of the Subsidiary and any Liens on
assets of such Subsidiary shall be deemed to be incurred by a Restricted Subsidiary as of the date
and, if the Indebtedness is not permitted to be incurred under Section 4.10 or the Lien is not
permitted by Section 4.12, the Issuer shall be in default of the applicable covenant.
Notwithstanding anything to the contrary, CPI shall not be designated an Unrestricted Subsidiary.

           (d) The Issuer may designate an Unrestricted Subsidiary as a Restricted Subsidiary (a
“Redesignation”) only if:

     (1) no Default shall have occurred and be continuing at the time of and after giving
effect to such Redesignation; and

     (2) all Liens, Indebtedness and Investments of such Unrestricted Subsidiary outstanding
immediately following such Redesignation would, if incurred or made at such time, have been
permitted to be incurred or made for all purposes of this Indenture.

           (e) All Designations and Redesignations must be evidenced by resolutions of the Board of
Directors of the Issuer, delivered to the Trustee certifying compliance with the foregoing
provisions.

SECTION 4.20. Limitation on the Issuance or Sale of Equity Interests of
Restricted Subsidiaries.

           The Issuer will not, and will not permit any Restricted Subsidiary to, directly or indirectly,
sell or issue any shares of Equity Interests of any Restricted Subsidiary except (1) to the Issuer,
a Restricted Subsidiary or the minority stockholders of any Restricted Subsidiary, on a pro rata
basis, at Fair Market Value, or (2) to the extent such shares represent directors’ qualifying
shares or shares required by applicable law to be held by a Person other than the Issuer or a
Wholly-Owned Restricted Subsidiary. The sale of all the Equity Interests of any Restricted
Subsidiary is permitted by this Section 4.20 but is subject to Section 4.13.

SECTION 4.21. Business Activities.

           The Issuer will not, and will not permit any Restricted Subsidiary to, engage in any business
other than the Permitted Business.

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ARTICLE FIVE

SUCCESSOR CORPORATION

SECTION 5.01. Mergers, Consolidations, Etc.

           (a) The Issuer will not, directly or indirectly, in a single transaction or a series of
related transactions, (i) consolidate or merge with or into another Person (other than a merger
with a Wholly-Owned Restricted Subsidiary solely for the purpose of changing the Issuer’s
jurisdiction of incorporation to another State of the United States), or sell, lease, transfer,
convey or otherwise dispose of or assign all or substantially all of the assets of the Issuer or
the Issuer and the Restricted Subsidiaries (taken as a whole) or (ii) adopt a Plan of Liquidation
unless, in either case:

     (1) either:

     (a) the Issuer will be the surviving or continuing Person; or

     (b) the Person formed by or surviving such consolidation or merger or to which
such sale, lease, conveyance or other disposition shall be made (or, in the case of
a Plan of Liquidation, any Person to which assets are transferred) (collectively,
the “Successor”) is a corporation, limited liability company or limited partnership
organized and existing under the laws of any State of the United States of America
or the District of Columbia, and the Successor expressly assumes, by supplemental
indenture in form and substance satisfactory to the Trustee, all of the obligations
of the Issuer under the Notes, this Indenture and the Registration Rights Agreement;

     (2) immediately prior to and immediately after giving effect to such transaction and
the assumption of the obligations as set forth in clause (1)(b) above and the incurrence of
any Indebtedness to be incurred in connection therewith, no Default shall have occurred and
be continuing; and

     (3) immediately after and giving effect to such transaction and the assumption of the
obligations set forth in clause (1)(b) above and the incurrence of any Indebtedness to be
incurred in connection therewith, and the use of any net proceeds therefrom on a pro forma
basis, (a) the Consolidated Net Worth of the Issuer or the Successor, as the case may be,
would be at least equal to the Consolidated Net Worth of the Issuer immediately prior to
such transaction and (b) either (x) the Issuer or the Successor, as the case may be, could
incur $1.00 of additional Indebtedness pursuant to the Issuer Leverage Ratio Exception or
(y) the Consolidated Leverage Ratio of the Issuer or the Successor, as
the case may be, would not exceed the Consolidated Leverage Ratio of the Issuer
immediately prior to such transaction.

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           For purposes of this Section 5.01(a), any Indebtedness of the Successor which was not
Indebtedness of the Issuer immediately prior to the transaction shall be deemed to have been
incurred in connection with such transaction.

           (b) Additionally, for purposes of the foregoing, the transfer (by lease, assignment, sale or
otherwise, in a single transaction or series of transactions) of all or substantially all of the
properties or assets of one or more Restricted Subsidiaries, the Equity Interests of which
constitute all or substantially all of the properties and assets of the Issuer, will be deemed to
be the transfer of all or substantially all of the properties and assets of the Issuer.

           (c) Upon any consolidation, combination or merger of the Issuer, or any transfer of all or
substantially all of the assets of the Issuer in accordance with the foregoing, in which the Issuer
is not the continuing obligor under the Notes, the surviving entity formed by such consolidation or
into which the Issuer is merged or the entity to which the conveyance, lease or transfer is made
will succeed to, and be substituted for, and may exercise every right and power of, the Issuer
under this Indenture and the Notes with the same effect as if such surviving entity had been named
therein as the Issuer and, except in the case of a lease, the Issuer will be released from the
obligation to pay the principal of and interest on the Notes and all of the Issuer’s other
obligations and covenants under the Notes and this Indenture.

ARTICLE SIX

DEFAULT AND REMEDIES

SECTION 6.01. Events of Default.

           Each of the following is an “Event of Default”:

     (1) failure by the Issuer to pay interest on any of the Notes when it becomes due and
payable and the continuance of any such failure for 30 days, which payment shall be in cash
unless, for any Interest Payment Date on or after August 1, 2006 and on or before February
1, 2010, the Issuer has elected to pay interest through the issuance of Additional Notes in
accordance with this Indenture, in which case payment of interest due on such Interest
Payment Date shall be through the issuance of Additional Notes;

     (2) failure by the Issuer to pay the principal of any of the Notes when it becomes due
and payable, whether at Stated Maturity, upon redemption, upon purchase, upon acceleration
or otherwise;

     (3) failure by the Issuer to comply with Section 5.01 or in respect of its obligations
to make a Change of Control Offer as described under Section 4.09;

     (4) failure by the Issuer to comply with any other agreement or covenant in this
Indenture and continuance of such failure for 60 days after notice of such failure has been
given to the Issuer by the Trustee or by the Holders of at least 25% of the aggregate
principal amount of the Notes then outstanding;

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     (5) default under any mortgage, indenture or other instrument or agreement under which
there may be issued or by which there may be secured or evidenced Indebtedness of the Issuer
or any Restricted Subsidiary, whether such Indebtedness now exists or is incurred after the
Issue Date, which default:

     (a) is caused by a failure to pay at final maturity, principal on such
Indebtedness within the applicable express grace period and any extensions thereof,

     (b) results in the acceleration of such Indebtedness prior to its express final
maturity or

     (c) results in the commencement of judicial proceedings to foreclose upon, or
to exercise remedies under applicable law or applicable security documents to take
ownership of, the assets securing such Indebtedness,

and in each case, the principal amount of such Indebtedness, together with any other
Indebtedness with respect to which an event described in clause (a), (b) or (c) has occurred
and is continuing, aggregates $25.0 million or more;

     (6) one or more judgments or orders that exceed $25.0 million in the aggregate (net of
amounts covered by insurance or bonded) for the payment of money have been entered by a
court or courts of competent jurisdiction against the Issuer or any Restricted Subsidiary
and such judgment or judgments have not been satisfied, stayed, annulled or rescinded within
60 days of being entered;

     (7) the Issuer or any Significant Subsidiary pursuant to or within the meaning of any
Bankruptcy Law:

     (a) commences a voluntary case,

     (b) consents to the entry of an order for relief against it in an involuntary
case,

     (c) consents to the appointment of a Custodian of it or for all or
substantially all of its assets, or

     (d) makes a general assignment for the benefit of its creditors; or

     (8) a court of competent jurisdiction enters an order or decree under any Bankruptcy
Law that:

     (a) is for relief against the Issuer or any Significant Subsidiary as debtor in
an involuntary case,

     (b) appoints a Custodian of the Issuer or any Significant Subsidiary or a
Custodian for all or substantially all of the assets of the Issuer or any
Significant Subsidiary, or

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     (c) orders the liquidation of the Issuer or any Significant Subsidiary,

and the order or decree remains unstayed and in effect for 60 days.

SECTION 6.02. Acceleration.

           If an Event of Default specified in clause (7) or (8) of Section 6.01 with respect to the
Issuer occurs, all outstanding Notes shall become due and payable without any further action or
notice. If an Event of Default (other than an Event of Default specified in clause (7) or (8) of
Section 6.01 with respect to the Issuer) shall have occurred and be continuing under this
Indenture, the Trustee, by written notice to the Issuer, or the Holders of at least 25% in
aggregate principal amount of the Notes then outstanding, by written notice to the Issuer and the
Trustee, may declare (an “acceleration declaration”) all amounts owing under the Notes to be due
and payable immediately. Upon such declaration of acceleration, the aggregate principal amount of
and accrued and unpaid interest, if any, on the outstanding Notes shall become due and payable
immediately; provided, however, that after such acceleration, but before a judgment or decree based
on acceleration, the Holders of a majority in aggregate principal amount of such outstanding Notes
may rescind and annul such acceleration:

     (1) if the rescission would not conflict with any judgment or decree;

     (2) if all existing Defaults have been cured or waived except nonpayment of principal
and interest, if any, that has become due solely because of this acceleration;

     (3) to the extent the payment of such interest is lawful, interest on overdue
installments of interest and overdue principal, which has become due otherwise than by such
declaration of acceleration, has been paid;

     (4) if the Issuer has paid to the Trustee its reasonable compensation and reimbursed
the Trustee of its expenses, disbursements and advances; and

     (5) in the event of a cure or waiver of a Default of the type set forth in Section
6.01(7) or (8), the Trustee shall have received an Officers’ Certificate and an Opinion of
Counsel that such Default has been cured or waived.

No such rescission shall affect any subsequent Default or impair any right consequent thereto.

SECTION 6.03. Other Remedies.

           If a Default occurs and is continuing, the Trustee may pursue any available remedy by
proceeding at law or in equity to collect the payment of principal of, or interest on, the Notes or
to enforce the performance of any provision of the Notes or this Indenture.

           The Trustee may maintain a proceeding even if it does not possess any of the Notes or does not
produce any of them in the proceeding. A delay or omission by the Trustee or any Holder in
exercising any right or remedy accruing upon a Default shall not impair the right

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or remedy or
constitute a waiver of or acquiescence in the Default. No remedy is exclusive of any other remedy.
All available remedies are cumulative to the extent permitted by law.

SECTION 6.04. Waiver of Past Defaults.

           Subject to Sections 2.09, 6.07 and 9.02, the Holders of a majority in principal amount of the
outstanding Notes (which may include consents obtained in connection with a tender offer or
exchange offer of Notes) by notice to the Trustee may waive an existing Default and its
consequences, except a Default in the payment of principal of, or interest on, any Note as
specified in Section 6.01(1) or (2). The Issuer shall deliver to the Trustee an Officers’
Certificate stating that the requisite percentage of Holders have consented to such waiver and
attaching copies of such consents. When a Default is waived, it is cured and ceases.

SECTION 6.05. Control by Majority.

           The Holders of not less than a majority in principal amount of the outstanding Notes may
direct the time, method and place of conducting any proceeding for any remedy available to the
Trustee or exercising any trust or power conferred on it. Subject to Section 7.01, however, the
Trustee may refuse to follow any direction that conflicts with any law or this Indenture, that the
Trustee determines may be unduly prejudicial to the rights of another Holder, or that may involve
the Trustee in personal liability; provided that the Trustee may take any other action deemed
proper by the Trustee which is not inconsistent with such direction.

           In the event the Trustee takes any action or follows any direction pursuant to this Indenture,
the Trustee shall be entitled to indemnification against any loss or expense caused by taking such
action or following such direction.

SECTION 6.06. Limitation on Suits.

           No Holder will have any right to institute any proceeding with respect to this Indenture or
for any remedy thereunder, unless the Trustee:

     (1) has failed to act for a period of 60 days after receiving written notice of a
continuing Event of Default by such Holder and a request to act by Holders of at least 25%
in aggregate principal amount of Notes outstanding;

     (2) has been offered indemnity satisfactory to it in its reasonable judgment; and

     (3) has not received from the Holders of a majority in aggregate principal amount of
the outstanding Notes a direction inconsistent with such request.

However, such limitations do not apply to a suit instituted by a Holder of any Note for enforcement
of payment of the principal of or interest on such Note on or after the due date therefor.

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

SECTION 6.07. Rights of Holders To Receive Payment.

           Notwithstanding any other provision of this Indenture, the right of any Holder to receive
payment of principal of, and interest on, a Note, on or after the respective due dates therefor, or
to bring suit for the enforcement of any such payment on or after such respective dates, shall not
be impaired or affected without the consent of the Holder.

SECTION 6.08. Collection Suit by Trustee.

           If a Default in payment of principal or interest specified in Section 6.01(1) or (2) occurs
and is continuing, the Trustee may recover judgment in its own name and as trustee of an express
trust against the Issuer or any other obligor on the Notes for the whole amount of principal and
accrued interest and fees remaining unpaid, together with interest on overdue principal and, to the
extent that payment of such interest is lawful, interest on overdue installments of interest, in
each case at the rate per annum borne by the Notes and such further amount as shall be sufficient
to cover the costs and expenses of collection, including the reasonable compensation, expenses,
disbursements and advances of the Trustee, its agents and counsel.

SECTION 6.09. Trustee May File Proofs of Claim.

           The Trustee may file such proofs of claim and other papers or documents as may be necessary or
advisable in order to have the claims of the Trustee (including any claim for the compensation,
expenses, disbursements and advances of the Trustee, its agents and counsel) and the Holders
allowed in any judicial proceedings relating to the Issuer, their creditors or their property and
shall be entitled and empowered to collect and receive any monies or other property payable or
deliverable on any such claims and to distribute the same, and any Custodian in any such judicial
proceedings is hereby authorized by each Holder to make such payments to the Trustee and, in the
event that the Trustee shall consent to the making of such payments directly to the Holders, to pay
to the Trustee any amount due to it for the reasonable compensation, expenses, disbursements and
advances of the Trustee, its agent and counsel, and any other amounts due the Trustee under Section
7.07. Nothing herein contained shall be deemed to authorize the Trustee to authorize or consent to
or accept or adopt on behalf of any Holder any plan of reorganization, arrangement, adjustment or
composition affecting the Notes or the rights of any Holder thereof, or to authorize the Trustee to
vote in respect of the claim of any Holder in any
such proceeding. The Trustee shall be entitled to participate as a member of any official
committee of creditors in the matters as it deems necessary or advisable.

SECTION 6.10. Priorities.

           If the Trustee collects any money or property pursuant to this Article Six, it shall pay out
the money or property in the following order:

           First: to the Trustee for amounts due under Section 7.07;

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     Second: to Holders for interest accrued on the Notes, ratably, without preference or
priority of any kind, according to the amounts due and payable on the Notes for interest;

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

     Fourth: to the Issuer or, if applicable, the Guarantors, as their respective interests
may appear.

           The Trustee, upon prior notice to the Issuer, may fix a record date and payment date for any
payment to Holders pursuant to this Section 6.10.

SECTION 6.11. Undertaking for Costs.

           In any suit for the enforcement of any right or remedy under this Indenture or in any suit
against the Trustee for any action taken or omitted by it as Trustee, a court in its discretion may
require the filing by any party litigant in the suit of an undertaking to pay the costs of the
suit, and the court in its discretion may assess reasonable costs, including reasonable attorneys’
fees and expenses, against any party litigant in the suit, having due regard to the merits and good
faith of the claims or defenses made by the party litigant. This Section 6.11 does not apply to a
suit by the Trustee, a suit by a Holder pursuant to Section 6.07, or a suit by a Holder or Holders
of more than 10% in principal amount of the outstanding Notes.

ARTICLE SEVEN

TRUSTEE

SECTION 7.01. Duties of Trustee.

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

           (b) Except during the continuance of a Default:

     (1) The Trustee need perform only those duties as are specifically set forth herein or
in the Trust Indenture Act and no duties, covenants, responsibilities or obligations shall
be implied in this Indenture against the Trustee.

     (2) In the absence of bad faith on its part, the Trustee may conclusively rely, as to
the truth of the statements and the correctness of the opinions expressed therein, upon
certificates (including Officers’ Certificates) or opinions (including Opinions of Counsel)
furnished to the Trustee and conforming to the requirements of this Indenture.

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However, in
the case of any such certificates or opinions which by any provision hereof are specifically
required to be furnished to the Trustee, the Trustee shall examine the certificates and
opinions to determine whether or not they conform to the requirements of this Indenture.

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

     (1) This paragraph does not limit the effect of Section 7.01(b).

     (2) The Trustee shall not be liable for any error of judgment made in good faith by a
Responsible Officer, unless it is proved that the Trustee was negligent in ascertaining the
pertinent facts.

     (3) The Trustee shall not be liable with respect to any action it takes or omits to
take in good faith in accordance with a direction received by it pursuant to Section 6.05.

           (d) No provision of this Indenture shall require the Trustee to expend or risk its own funds
or otherwise incur any financial liability in the performance of any of its duties hereunder or to
take or omit to take any action under this Indenture or take any action at the request or direction
of Holders if it shall have reasonable grounds for believing that repayment of such funds is not
assured to it.

           (e) Whether or not therein expressly so provided, every provision of this Indenture that in
any way relates to the Trustee is subject to this Section 7.01.

           (f) The Trustee shall not be liable for interest on any money received by it except as the
Trustee may agree in writing with the Issuer. Money held in trust by the Trustee need not be
segregated from other funds except to the extent required by law.

           (g) In the absence of bad faith, negligence or willful misconduct on the part of the Trustee,
the Trustee shall not be responsible for the application of any money by any Paying Agent other
than the Trustee.

SECTION 7.02. Rights of Trustee.

           Subject to Section 7.01:

     (a) The Trustee may rely conclusively on any resolution, certificate (including any
Officers’ Certificate), statement, instrument, opinion (including any Opinion of Counsel),
notice, request, direction, consent, order, bond, debenture, or other paper or document
believed by it to be genuine and to have been signed or presented by the proper Person. The
Trustee need not investigate any fact or matter stated in the document.

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

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

     (d) The Trustee shall not be liable for any action it takes or omits to take in good
faith which it reasonably believes to be authorized or within its rights or powers under
this Indenture.

     (e) The Trustee may consult with counsel of its selection and the advice or opinion of
such counsel as to matters of law shall be full and complete authorization and protection
from liability in respect of any action taken, omitted or suffered by it hereunder in good
faith and in accordance with the advice or opinion of such counsel.

     (f) The Trustee shall 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 Holders
pursuant to the provisions of this Indenture, unless such Holders shall have offered to the
Trustee reasonable security or indemnity satisfactory to it against the costs, expenses and
liabilities which may be incurred therein or thereby.

     (g) The Trustee shall not be bound to make any investigation into the facts or matters
stated in any resolution, certificate (including any Officers’ Certificate), statement,
instrument, opinion (including any Opinion of Counsel), notice, request, direction, consent,
order, bond, debenture, or other paper or document, but the Trustee, in its discretion, may
make such further inquiry or investigation into such facts or matters as it may see fit and,
if the Trustee shall determine to make such further inquiry or investigation, it shall be
entitled, upon reasonable notice to the Issuer, to examine the books, records, and premises
of the Issuer, personally or by agent or attorney at the sole cost of the Issuer.

     (h) The Trustee shall not be required to give any bond or surety in respect of the
performance of its powers and duties hereunder.

     (i) The permissive rights of the Trustee to do things enumerated in this Indenture
shall not be construed as duties.

     (j) Except with respect to Sections 4.01 and 4.06, the Trustee shall have no duty to
inquire as to the performance of the Issuer with respect to the covenants contained in
Article Four. In addition, the Trustee shall not be deemed to have knowledge of an Event of
Default except (i) any Default or Event of Default occurring pursuant to Sections 4.01,
6.01(1) or 6.01(2) or (ii) any Default or Event of Default of which the Trustee shall have
received written notification.

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

SECTION 7.03. Individual Rights of Trustee.

           The Trustee in its individual or any other capacity may become the owner or pledgee of Notes
and may otherwise deal with the Issuer, its Subsidiaries or its respective Affiliates with the same
rights it would have if it were not Trustee. Any Agent may do the same with like rights. However,
the Trustee must comply with Sections 7.10 and 7.11.

SECTION 7.04. Trustee’s Disclaimer.

           The Trustee shall not be responsible for and makes no representation as to the validity or
adequacy of this Indenture or the Notes, it shall not be accountable for the Issuer’s use of the
proceeds from the Notes, and it shall not be responsible for any statement of the Issuer in this
Indenture or any document issued in connection with the sale of Notes or any statement in the Notes
other than the Trustee’s certificate of authentication. The Trustee makes no representations with
respect to the effectiveness or adequacy of this Indenture.

SECTION 7.05. Notice of Default.

           If a Default occurs and is continuing and the Trustee receives actual notice of such Default,
the Trustee shall mail to each Holder notice of the uncured Default within 30 days after such
Default occurs. Except in the case of a Default in payment of principal of, or interest on, any
Note, including an accelerated payment and the failure to make a payment on the Change of Control
Payment Date pursuant to a Change of Control Offer or the Net Proceeds Payment Date pursuant to a
Net Proceeds Offer, or a Default in complying with the provisions of Article Five, the Trustee may
withhold the notice if and so long as the Board of Directors, the executive committee, or a trust
committee of directors and/or Responsible Officers, of the Trustee in good faith determines that
withholding the notice is in the interest of the Holders.

SECTION 7.06. Reports by Trustee to Holders.

           Within 60 days after each January 1, beginning with January 1, 2006, the Trustee shall, to the
extent that any of the events described in Trust Indenture Act § 313(a) occurred within the
previous twelve months, but not otherwise, mail to each Holder a brief report dated as of such date
that complies with Trust Indenture Act § 313(a). The Trustee also shall comply with Trust
Indenture Act §§ 313(b), 313(c) and 313(d).

           A copy of each report at the time of its mailing to Holders shall be mailed to the Issuer and
filed with the SEC and each securities exchange, if any, on which the Notes are listed.

           The Issuer shall notify the Trustee if the Notes become listed on any securities exchange or
of any delisting thereof and the Trustee shall comply with Trust Indenture Act § 313(d).

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SECTION 7.07. Compensation and Indemnity.

           The Issuer shall pay to the Trustee from time to time such compensation as the Issuer and the
Trustee shall from time to time agree in writing for its services hereunder. The Trustee’s
compensation shall not be limited by any law on compensation of a trustee of an express trust. The
Issuer shall reimburse the Trustee upon request for all reasonable disbursements, expenses and
advances (including reasonable fees and expenses of counsel) incurred or made by it in addition to
the compensation for its services, except any such disbursements, expenses and advances as may be
attributable to the Trustee’s negligence, bad faith or willful misconduct. Such expenses shall
include the reasonable fees and expenses of the Trustee’s agents and counsel.

           The Issuer shall indemnify each of the Trustee or any predecessor Trustee and its officers,
directors, employees and agents for, and hold them harmless against, any and all loss, damage,
claims including taxes (other than taxes based upon, measured by or determined by the income of the
Trustee), liability or expense incurred by them except for such actions to the extent caused by any
negligence, bad faith or willful misconduct on their part, arising out of or in connection with the
acceptance or administration of this trust including the reasonable costs and expenses of defending
themselves against or investigating any claim or liability in connection with the exercise or
performance of any of the Trustee’s rights, powers or duties hereunder. The Trustee shall notify
the Issuer promptly of any claim asserted against the Trustee or any of its agents for which it may
seek indemnity. The Issuer may, subject to the approval of the Trustee (which approval shall not
be unreasonably withheld), defend the claim and the Trustee shall cooperate in the defense. The
Trustee and its agents subject to the claim may have separate counsel and the Issuer shall pay the
reasonable fees and expenses of such counsel; provided, however, that the Issuer will not be
required to pay such fees and expenses if, subject to the approval of the Trustee (which approval
shall not be unreasonably withheld), it assumes the Trustee’s defense and there is no conflict of
interest between the Issuer and the Trustee and its agents subject to the claim in connection with
such defense as reasonably determined by the Trustee. The Issuer need not pay for any settlement
made without its written consent. The Issuer need not reimburse any
expense or indemnify against any loss or liability to the extent incurred by the Trustee
through its negligence, bad faith or willful misconduct.

           To secure the Issuer’s payment obligations in this Section 7.07, the Trustee shall have a Lien
prior to the Notes against all money or property held or collected by the Trustee, in its capacity
as Trustee, except money or property held in trust to pay principal and interest on particular
Notes.

           When the Trustee incurs expenses or renders services after a Default specified in Section
6.01(7) or (8) occurs, such expenses and the compensation for such services shall be paid to the
extent allowed under any Bankruptcy Law.

           Notwithstanding any other provision in this Indenture, the foregoing provisions of this
Section 7.07 shall survive the satisfaction and discharge of this Indenture or the appointment of a
successor Trustee.

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           In no event shall the Trustee be liable for any failure or delay in the performance of its
obligations hereunder solely due to circumstances beyond its control, including, but not limited
to, acts of God, flood, war (whether declared or undeclared), terrorism, fire, riot, embargo,
government action, including any laws, ordinances, regulations, governmental action or the like
which delay, restrict or prohibit the providing of the services contemplated by this agreement.

SECTION 7.08. Replacement of Trustee.

     The Trustee may resign at any time by so notifying the Issuer in writing. The Holders of a
majority in principal amount of the outstanding Notes may remove the Trustee by so notifying the
Issuer and the Trustee and may appoint a successor Trustee. The Issuer may remove the Trustee if:

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

     (2) the Trustee is adjudged a bankrupt or an insolvent;

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

     (4) the Trustee becomes incapable of acting.

           If the Trustee resigns or is removed or if a vacancy exists in the office of Trustee for any
reason, the Issuer shall notify each Holder of such event and shall promptly appoint a successor
Trustee. Within one year after the successor Trustee takes office, the Holders of a majority in
principal amount of the Notes may appoint a successor Trustee to replace the successor Trustee
appointed by the Issuer.

           A successor Trustee shall deliver a written acceptance of its appointment to the retiring
Trustee and to the Issuer. Immediately after that, the retiring Trustee shall transfer, after
payment of all sums then owing to the Trustee pursuant to Section 7.07, all property held by it as
Trustee to the successor Trustee, subject to the Lien provided in Section 7.07, the resignation or
removal of the retiring Trustee shall become effective, and the successor Trustee shall have all
the rights, powers and duties of the Trustee under this Indenture. A successor Trustee shall mail
notice of its succession to each Holder.

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

           If the Trustee fails to comply with Section 7.10, any Holder may petition any court of
competent jurisdiction for the removal of the Trustee and the appointment of a successor Trustee.

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           Notwithstanding replacement of the Trustee pursuant to this Section 7.08, the Issuer’s
obligations under Section 7.07 shall continue for the benefit of the retiring Trustee.

SECTION 7.09. Successor Trustee by Merger, Etc.

           If the Trustee consolidates with, merges or converts into, or transfers all or substantially
all of its corporate trust business to, another corporation, the resulting, surviving or transferee
corporation without any further act shall, if such resulting, surviving or transferee corporation
is otherwise eligible hereunder, be the successor Trustee; provided that such corporation shall be
otherwise qualified and eligible under this Article Seven.

SECTION 7.10. Eligibility; Disqualification.

           This Indenture shall always have a Trustee who satisfies the requirement of Trust Indenture
Act §§ 310(a)(1), 310(a)(2) and 310(a)(5). The Trustee shall have a combined capital and surplus
of at least $150,000,000 as set forth in its most recent published annual report of condition. The
Trustee shall comply with Trust Indenture Act § 310(b); provided, however, that there shall be
excluded from the operation of Trust Indenture Act § 310(b)(1) any indenture or indentures under
which other securities, or certificates of interest or participation in other securities, of the
Issuer are outstanding, if the requirements for such exclusion set forth in Trust Indenture Act §
310(b)(1) are met. The provisions of Trust Indenture Act § 310 shall apply to the Issuer and any
other obligor of the Notes.

SECTION 7.11. Preferential Collection of Claims Against the Issuer.

           The Trustee, in its capacity as Trustee hereunder, shall comply with Trust Indenture Act §
311(a), excluding any creditor relationship listed in Trust Indenture Act § 311(b). A Trustee who
has resigned or been removed shall be subject to Trust Indenture Act § 311(a) to the extent
indicated.

ARTICLE EIGHT

DISCHARGE OF INDENTURE; DEFEASANCE

SECTION 8.01. Termination of the Issuer’s Obligations.

           The Issuer may terminate its obligations under the Notes and this Indenture and the
obligations of the Guarantors under the Note Guarantees and this Indenture and this Indenture shall
cease to be of further effect, except those obligations referred to in the penultimate paragraph of
this Section 8.01, if:

     (1) all the Notes that have been authenticated and delivered (except lost, stolen or
destroyed Notes which have been replaced or paid and Notes for whose payment money has been
deposited in trust or segregated and held in trust by the Issuer and thereafter repaid to
the Issuer or discharged from this trust) have been delivered to the Trustee for
cancellation, or

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     (2) (a) all Notes not delivered to the Trustee for cancellation otherwise have become
due and payable or have been called for redemption pursuant to Section 5 or Section 6 of the
Notes and the Issuer has irrevocably deposited or caused to be deposited with the Trustee
funds in trust sufficient to pay and discharge the entire Indebtedness (including all
principal of and accrued interest, if any, and premium, if any) on the Notes not theretofore
delivered to the Trustee for cancellation,

     (b) the Issuer has paid all sums payable by it under this Indenture, and

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

           In addition, in the case of clause (2), the Issuer must deliver an Officers’ Certificate and
an Opinion of Counsel stating that all conditions precedent to satisfaction and discharge have been
complied with.

           In the case of clause (2) of this Section 8.01, and subject to the next sentence and
notwithstanding the foregoing paragraph, the Issuer’s obligations in Sections 2.05, 2.06, 2.07,
2.08, 4.01, 4.02, 4.03 (as to legal existence of the Issuer only), 7.07, 8.05 and 8.06 shall
survive until the Notes are no longer outstanding pursuant to the last paragraph of Section 2.08.
After the Notes are no longer outstanding, the Issuer’s obligations in Sections 7.07, 8.05 and 8.06
shall survive.

           After such delivery or irrevocable deposit, the Trustee upon request shall acknowledge in
writing the discharge of the Issuer’s obligations under the Notes and this Indenture except for
those surviving obligations specified above.

SECTION 8.02. Legal Defeasance and Covenant Defeasance.

           (a) The Issuer may, at its option and at any time, elect to have either paragraph (b) or (c)
below applied to all outstanding Notes upon compliance with the conditions set forth in Section
8.03.

           (b) Upon the Issuer’s exercise under Section 8.02(a) hereof of the option applicable to this
Section 8.02(b), the Issuer and the Guarantors shall, subject to the satisfaction of the conditions
set forth in Section 8.03, be deemed to have been discharged from their Obligations with respect to
all outstanding Notes on the date the conditions set forth below are satisfied (hereinafter, “Legal
Defeasance”). For this purpose, Legal Defeasance means that the Issuer and the Guarantors shall be
deemed to have paid and discharged the entire Indebtedness represented by the outstanding Notes and
the Note Guarantees, which shall thereafter be deemed to be “outstanding” only for the purposes of
Section 8.04 hereof and the other Sections of this Indenture referred to in (i) and (ii) below, and
to have satisfied all their other obligations under such Notes and this Indenture and the
Guarantors shall be deemed to have satisfied all of their obligations under the Note Guarantees and
this Indenture (and the Trustee, on demand of and at the expense

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of the Issuer, shall execute
proper instruments acknowledging the same), except for the following provisions which shall survive
until otherwise terminated or discharged hereunder:

     (i) the rights of Holders of outstanding Notes to receive, solely from the trust fund
described in Section 8.04 hereof, and as more fully set forth in such Section 8.04, payments
in respect of the principal of, premium, if any, and interest on such Notes when such
payments are due;

     (ii) the Issuer’s Obligations with respect to such Notes under Article Two and Section
4.02 hereof;

     (iii) the rights, powers, trusts, duties and immunities of the Trustee hereunder and
the Issuer’s obligations in connection therewith including, but not limited to, Section
7.07; and

     (iv) the provisions of this Article Eight applicable to Legal Defeasance.

           Subject to compliance with this Article Eight, the Issuer may exercise its option under this
Section 8.02(b) notwithstanding the prior exercise of its option under Section 8.02(c) hereof.

           (c) Upon the Issuer’s exercise under paragraph (a) hereof of the option applicable to this
paragraph (c), the Issuer and the Guarantors shall, subject to the satisfaction of the conditions
set forth in Section 8.03 hereof, be released from their respective Obligations under the covenants
contained in Sections 4.03 (other than with respect to the legal existence of the Issuer), 4.04,
and 4.09 through 4.21, clause (3) of Section 5.01(a) and Article Eleven hereof with respect to the
outstanding Notes on and after the date the conditions set forth in Section 8.03 are satisfied
(hereinafter, “Covenant Defeasance”), and the Notes shall thereafter be deemed not “outstanding”
for the purposes of any direction, waiver, consent or declaration or act of Holders
(and the consequences of any thereof) in connection with such covenants, but shall continue to
be deemed “outstanding” for all other purposes hereunder (it being understood that such Notes shall
not be deemed outstanding for accounting purposes). For this purpose, Covenant Defeasance means
that, with respect to the outstanding Notes, the Issuer and the Guarantors may omit to comply with
and shall have no liability in respect of any term, condition or limitation set forth in any such
covenant, whether directly or indirectly, by reason of any reference elsewhere herein to any such
covenant or by reason of any reference in any such covenant to any other provision herein or in any
other document and such omission to comply shall not constitute an Event of Default under Section
6.01 hereof, but, except as specified above, the remainder of this Indenture and such Notes shall
be unaffected thereby. In addition, upon the Issuer’s exercise under paragraph (a) hereof of the
option applicable to this paragraph (c), subject to the satisfaction of the conditions set forth in
Section 8.03 hereof, clauses (3), (4), (5), (6) and (9) of Section 6.01 hereof shall not constitute
Events of Default.

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SECTION 8.03. Conditions to Legal Defeasance or Covenant Defeasance.

           The following shall be the conditions to the application of either Section 8.02(b) or 8.02(c)
hereof to the outstanding Notes:

     (1) the Issuer must irrevocably deposit with the Trustee, in trust, for the benefit of
the Holders, U.S. Legal Tender, U.S. Government Obligations or a combination thereof, in
such amounts as will be sufficient (without reinvestment), in the opinion of a nationally
recognized firm of independent public accountants selected by the Issuer, to pay the
principal of and interest, if any, and premium, if any, on the Notes on the stated date for
payment or on the redemption date of the Notes,

     (2) in the case of Legal Defeasance, the Issuer shall have delivered to the Trustee an
Opinion of Counsel in the United States reasonably acceptable to the Trustee confirming
that:

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

     (b) since the date of this Indenture, there has been a change in the applicable
U.S. federal income tax law,

in either case to the effect that, and based thereon the Holders will not recognize income,
gain or loss for U.S. federal income tax purposes as a result of such Legal Defeasance and
will be subject to U.S. federal income tax on the same amounts, in the same manner and at
the same times as would have been the case if such Legal Defeasance had not occurred,

     (3) in the case of Covenant Defeasance, the Issuer shall have delivered to the Trustee
an Opinion of Counsel in the United States reasonably acceptable to the Trustee confirming
that the Holders will not recognize income, gain or loss for U.S. federal income tax
purposes as a result of such Covenant Defeasance and will be subject to U.S.
federal income tax on the same amounts, in the same manner and at the same times as
would have been the case if such Covenant Defeasance had not occurred,

     (4) no Default shall have occurred and be continuing on the date of such deposit (other
than a Default resulting from the borrowing of funds to be applied to such deposit),

     (5) the Legal Defeasance or Covenant Defeasance shall not result in a breach or
violation of, or constitute a Default under this Indenture or a default under any other
material agreement or instrument to which the Issuer or any of its Subsidiaries is a party
or by which the Issuer or any of its Subsidiaries is bound (other than any such Default or
default resulting solely from the borrowing of funds to be applied to such deposit).

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     (6) the Issuer shall have delivered to the Trustee an Officers’ Certificate stating
that the deposit was not made by it with the intent of preferring the Holders over any other
creditors of the Issuer or with the intent of defeating, hindering, delaying or defrauding
any other of its creditors, and

     (7) the Issuer shall have delivered to the Trustee an Officers’ Certificate and an
Opinion of Counsel, each stating that the conditions provided for in, in the case of the
Officers’ Certificate, clauses (1) through (6), as applicable, and, in the case of the
Opinion of Counsel, clauses (2), if applicable, and/or (3) and (5) of this Section 8.03 have
been complied with.

SECTION 8.04. Application of Trust Money.

           The Trustee or Paying Agent shall hold in trust U.S. Legal Tender and U.S. Government
Obligations deposited with it pursuant to this Article Eight, and shall apply the deposited U.S.
Legal Tender and the money from U.S. Government Obligations in accordance with this Indenture to
the payment of the principal of and the interest on the Notes. The Trustee shall be under no
obligation to invest said U.S. Legal Tender and U.S. Government Obligations, except as it may agree
with the Issuer.

           The Issuer shall pay and indemnify the Trustee against any tax, fee or other charge imposed on
or assessed against the U.S. Legal Tender and U.S. Government Obligations deposited pursuant to
Section 8.03 or the principal and interest received in respect thereof, other than any such tax,
fee or other charge which by law is for the account of the Holders of the outstanding Notes.

           Anything in this Article Eight to the contrary notwithstanding, the Trustee shall deliver or
pay to the Issuer from time to time upon the Issuer’s request any U.S. Legal Tender and U.S.
Government Obligations held by it as provided in Section 8.03 which, in the opinion of a nationally
recognized firm of independent public accountants expressed in a written certification thereof
delivered to the Trustee, are in excess of the amount thereof that would then be required to be
deposited to effect an equivalent Legal Defeasance or Covenant Defeasance.

SECTION 8.05. Repayment to the Issuer.

           The Trustee and the Paying Agent shall pay to the Issuer upon request any money held by them
for the payment of principal or interest that remains unclaimed for two years; provided that the
Trustee or such Paying Agent, before being required to make any payment, may at the expense of the
Issuer cause to be published once in a newspaper of general circulation in the City of New York or
mail to each Holder entitled to such money notice that such money remains unclaimed and that after
a date specified therein which shall be at least 30 days from the date of such publication or
mailing any unclaimed balance of such money then remaining will be repaid to the Issuer. After
payment to the Issuer, Holders entitled to such money must look to the Issuer for payment as
general creditors unless an applicable law designates another Person.

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SECTION 8.06. Reinstatement.

           If the Trustee or Paying Agent is unable to apply any U.S. Legal Tender and U.S. Government
Obligations in accordance with this Article Eight by reason of any legal proceeding or by reason of
any order or judgment of any court or governmental authority enjoining, restraining or otherwise
prohibiting such application, or if the funds deposited with the Trustee to effect Covenant
Defeasance are insufficient to pay the principal of, and interest on, the Notes when due, the
Issuer’s obligations under this Indenture, and the Notes shall be revived and reinstated as though
no deposit had occurred pursuant to this Article Eight until such time as the Trustee or Paying
Agent is permitted to apply all such U.S. Legal Tender and U.S. Government Obligations in
accordance with this Article Eight; provided that if the Issuer has made any payment of interest
on, or principal of, any Notes because of the reinstatement of its obligations, the Issuer shall be
subrogated to the rights of the Holders of such Notes to receive such payment from the U.S. Legal
Tender and U.S. Government Obligations held by the Trustee or Paying Agent.

ARTICLE NINE

AMENDMENTS, SUPPLEMENTS AND WAIVERS

SECTION 9.01. Without Consent of Holders.

           (a) The Issuer and the Trustee, together, may amend or supplement this Indenture or the Notes
without notice to or consent of any Holder:

     (1) to cure any ambiguity, defect or inconsistency;

     (2) to provide for uncertificated Notes in addition to or in place of certificated
Notes;

     (3) to provide for the assumption of the Issuer’s obligations to the Holders of the
Notes in the case of a merger, consolidation or sale of all or substantially all of the
assets, in accordance with Article Five;

     (4) to provide for Note Guarantees;

     (5) to make any change that would not materially adversely affect the rights of any
Holder; or

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

provided that the Issuer has delivered to the Trustee an Opinion of Counsel and an Officers’
Certificate, each stating that such amendment or supplement complies with the provisions of this
Section 9.01.

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SECTION 9.02. With Consent of Holders.

           (a) Subject to Section 6.07, the Issuer, the Guarantors and the Trustee, together, with the
written consent of the Holder or Holders of a majority in aggregate principal amount of the
outstanding Notes may amend or supplement this Indenture, the Notes or the Note Guarantees, without
notice to any other Holders. Subject to Section 6.07, the Holder or Holders of a majority in
aggregate principal amount of the outstanding Notes may waive compliance with any provision of this
Indenture, the Notes or the Note Guarantees without notice to any other Holders;

           (b) Notwithstanding Section 9.02(a), without the consent of each Holder affected, no amendment
or waiver may:

     (1) reduce, or change the maturity, of the principal of any Note;

     (2) reduce the rate of or extend the time for payment of interest on any Note, change
any date on which interest is payable in cash or change the definitions of “Applicable
Margin,” “Cash Margin” or “Applicable Step-Up” or otherwise change the manner in which
interest is calculated in a manner adverse to the Holders;

     (3) reduce any premium payable upon optional redemption of the Notes or change any date
on which a premium is payable upon optional redemption of the Notes;

     (4) after a Change of Control has occurred, modify the obligation of the Issuer to make
a Change of Control Offer relating to such Change of Control;

     (5) make any Note or interest thereon payable in money or currency other than that
stated in the Notes, except that interest may be paid through the issuance of Additional
Notes in accordance with this Indenture;

     (6) modify or change any provision of this Indenture or the related definitions to
affect the ranking of the Notes in a manner that adversely affects the Holders;

     (7) reduce the percentage of Holders necessary to consent to an amendment or waiver to
this Indenture or the Notes;

     (8) waive a default in the payment of principal of or premium or interest on any Notes
(except a rescission of acceleration of the Notes by the Holders thereof as provided in this
Indenture and a waiver of the payment default that resulted from such acceleration);

     (9) impair the rights of Holders to receive payments of principal of or interest on the
Notes on or after the due date therefor or to institute suit for the enforcement of any
payment on the Notes; or

     (10) make any change in these amendment and waiver provisions.

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           (c) It shall not be necessary for the consent of the Holders under this Section to approve the
particular form of any proposed amendment, supplement or waiver but it shall be sufficient if such
consent approves the substance thereof.

           (d) A consent to any amendment, supplement or waiver under this Indenture by any Holder given
in connection with an exchange (in the case of an exchange offer) or a tender (in the case of a
tender offer) of such Holder’s Notes will not be rendered invalid by such tender or exchange.

           (e) After an amendment, supplement or waiver under this Section 9.02 becomes effective, the
Issuer shall mail to the Holders affected thereby a notice briefly describing the amendment,
supplement or waiver. Any failure of the Issuer to mail such notice, or any defect therein, shall
not, however, in any way impair or affect the validity of any such amendment, supplement or waiver.

SECTION 9.03. [Intentionally Omitted.]

SECTION 9.04. Compliance with the Trust Indenture Act.

           From the date on which this Indenture is qualified under the Trust Indenture Act, every
amendment, waiver or supplement of this Indenture, the Notes or the Note Guarantees shall comply
with the Trust Indenture Act as then in effect.

SECTION 9.05. Revocation and Effect of Consents.

           Until an amendment, waiver or supplement becomes effective, a consent to it by a Holder is a
continuing consent by the Holder and every subsequent Holder of a Note or portion of a Note that
evidences the same debt as the consenting Holder’s Note, even if notation of the consent is not
made on any Note. However, any such Holder or subsequent Holder may revoke the consent as to his
Note or portion of his Note by notice to the Trustee or the Issuer received before the date on
which the Trustee receives an Officers’ Certificate certifying that the Holders of the requisite
principal amount of Notes have consented (and not theretofore revoked such consent) to the
amendment, supplement or waiver.

           The Issuer may, but shall not be obligated to, fix a record date for the purpose of
determining the Holders entitled to consent to any amendment, supplement or waiver, which record
date shall be at least 30 days prior to the first solicitation of such consent. If a record date
is fixed, then notwithstanding the last sentence of the immediately preceding paragraph, those
Persons who were Holders at such record date (or their duly designated proxies), and only those
Persons, shall be entitled to revoke any consent previously given, whether or not such Persons
continue to be Holders after such record date. No such consent shall be valid or effective for
more than 90 days after such record date. The Issuer shall inform the Trustee in writing of the
fixed record date if applicable.

           After an amendment, supplement or waiver becomes effective, it shall bind every Holder, unless
it makes a change described in any of clauses (1) through (10) of Section 9.02(b),

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in which case,
the amendment, supplement or waiver shall bind only each Holder of a Note who has consented to it
and every subsequent Holder of a Note or portion of a Note that evidences the same debt as the
consenting Holder’s Note; provided that any such waiver shall not impair or affect the right of any
Holder to receive payment of principal of, and interest on, a Note, on or after the respective due
dates therefor, or to bring suit for the enforcement of any such payment on or after such
respective dates without the consent of such Holder.

SECTION 9.06. Notation on or Exchange of Notes.

           If an amendment, supplement or waiver changes the terms of a Note, the Issuer may require the
Holder of the Note to deliver it to the Trustee. The Issuer shall provide the Trustee with an
appropriate notation on the Note about the changed terms and cause the Trustee to return it to the
Holder at the Issuer’s expense. Alternatively, if the Issuer or the Trustee so determines, the
Issuer in exchange for the Note shall issue, and the Trustee shall authenticate, a new Note that
reflects the changed terms. Failure to make the appropriate notation or issue a new Note shall not
affect the validity and effect of such amendment, supplement or waiver.

SECTION 9.07. Trustee To Sign Amendments, Etc.

           The Trustee shall execute any amendment, supplement or waiver authorized pursuant to this
Article Nine; provided that the Trustee may, but shall not be obligated to, execute any such
amendment, supplement or waiver which affects the Trustee’s own rights, duties or immunities under
this Indenture. The Trustee shall be entitled to receive, and shall be fully protected in relying
upon, an Opinion of Counsel and an Officers’ Certificate each stating that the execution of any
amendment, supplement or waiver authorized pursuant to this Article Nine is authorized or permitted
by this Indenture and constitutes legal, valid and binding obligations of the Issuer enforceable in
accordance with its terms. Such Opinion of Counsel shall be at the expense of the Issuer.

ARTICLE TEN

[INTENTIONALLY OMITTED]

ARTICLE ELEVEN

NOTE GUARANTEE

SECTION 11.01. Guarantee.

           Subject to this Article Eleven, each of the Guarantors, hereby, jointly and severally,
unconditionally guarantees to each Holder of a Note authenticated and delivered by the Trustee and
to the Trustee and its successors and assigns, irrespective of the validity and enforceability of
this Indenture, the Notes or the obligations of the Issuer hereunder or thereunder, that: (a) the
principal of and interest on the Notes will be promptly paid in full when due, whether at maturity,
by acceleration, redemption or otherwise, and interest on the overdue principal of and interest on
the Notes, if any, if lawful, and all other obligations of the Issuer to the

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Holders or the Trustee
hereunder or thereunder will be promptly paid in full or performed, all in accordance with the
terms hereof and thereof; and (b) in case of any extension of time of payment or renewal of any
Notes or any of such other obligations, that same will be promptly paid in full when due or
performed in accordance with the terms of the extension or renewal, whether at stated maturity, by
acceleration or otherwise. Failing payment when due of any amount so guaranteed or any performance
so guaranteed for whatever reason, the Guarantors shall be jointly and severally obligated to pay
the same immediately. Each Guarantor agrees that this is a guarantee of payment and not a
guarantee of collection.

           The Guarantors hereby agree that their obligations hereunder shall be unconditional,
irrespective of the validity, regularity or enforceability of the Notes or this Indenture, the
absence of any action to enforce the same, any waiver or consent by any Holder of the Notes with
respect to any provisions hereof or thereof, the recovery of any judgment against the Issuer, any
action to enforce the same or any other circumstance which might otherwise constitute a legal or
equitable discharge or defense of a guarantor. Each Guarantor hereby waives, to the extent
permitted by applicable law, diligence, presentment, demand of payment, filing of claims with a
court in the event of insolvency or bankruptcy of the Issuer, any right to require a proceeding
first against the Issuer, protest, notice and all demands whatsoever and covenant that this Note
Guarantee shall not be discharged except by complete performance of the obligations contained in
the Notes and this Indenture.

           If any Holder or the Trustee is required by any court or otherwise to return to the Issuer,
the Guarantors or any custodian, trustee, liquidator or other similar official acting in relation
to either the Issuer or the Guarantors, any amount paid by either to the Trustee or such Holder,
this Note Guarantee, to the extent theretofore discharged, shall be reinstated in full force and
effect.

           Each Guarantor agrees that it shall not be entitled to any right of subrogation in relation to
the Holders in respect of any obligations guaranteed hereby until payment in full of all
obligations guaranteed hereby. Each Guarantor further agrees that, as between the Guarantors,
on the one hand, and the Holders and the Trustee, on the other hand, (x) the maturity of the
obligations guaranteed hereby may be accelerated as provided in Article Six hereof for the purposes
of this Note Guarantee, notwithstanding any stay, injunction or other prohibition preventing such
acceleration in respect of the obligations guaranteed hereby, and (y) in the event of any
declaration of acceleration of such obligations as provided in Article Six hereof, such obligations
(whether or not due and payable) shall forthwith become due and payable by the Guarantors for the
purpose of this Note Guarantee.

SECTION 11.02. [Intentionally Omitted.]

SECTION 11.03. Limitation on Guarantor Liability.

           Each Guarantor, and by its acceptance of Notes, each Holder, hereby confirms that it is the
intention of all such parties that the Note Guarantee of such Guarantor not constitute a fraudulent
transfer or conveyance for purposes of Bankruptcy Law, the Uniform Fraudulent Conveyance Act, the
Uniform Fraudulent Transfer Act or any similar federal or state law to the

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extent applicable to any Note Guarantee. To effectuate the foregoing intention, the Trustee, the Holders and each Guarantor
hereby irrevocably agree that the obligations of such Guarantor will, after giving effect to such
maximum amount and all other contingent and fixed liabilities of such Guarantor that are relevant
under such laws, and after giving effect to any collections from, rights to receive contribution
from or payments made by or on behalf of any other Guarantor in respect of the obligations of such
other Guarantor under this Article Eleven, result in the obligations of such Guarantor under its
Note Guarantee not constituting a fraudulent transfer or conveyance. Each Guarantor that makes a
payment for distribution under its Note Guarantee is entitled to a contribution from each other
Guarantor in a pro rata amount based on the adjusted net assets of each Guarantor.

SECTION 11.04. Execution and Delivery of Note Guarantee.

          To evidence its Note Guarantee set forth in Section 11.01, each Guarantor hereby agrees that a
notation of such Note Guarantee substantially in the form included in Exhibit F shall be endorsed
by an Officer of such Guarantor on each Note authenticated and delivered by the Trustee and that
this Indenture shall be executed on behalf of such Guarantor by an Officer.

          Each Guarantor hereby agrees that its Note Guarantee set forth in Section 11.01 shall remain
in full force and effect notwithstanding any failure to endorse on each Note a notation of such
Note Guarantee.

          If an Officer whose signature is on this Indenture or on the Note Guarantee no longer holds
that office at the time the Trustee authenticates the Note on which a Note Guarantee is endorsed,
the Note Guarantee shall be valid nevertheless.

          The delivery of any Note by the Trustee, after the authentication thereof hereunder, shall
constitute due delivery of the Note Guarantee set forth in this Indenture on behalf of the
Guarantors.

SECTION 11.05. Release of a Guarantor.

          A Guarantor shall be released from its obligations under its Note Guarantee and its
obligations under this Indenture and the Registration Rights Agreement:

     (1) in the event of a sale or other disposition of all or substantially all of the
assets of such Guarantor, by way of merger, consolidation or otherwise, or a sale or other
disposition of all of the Equity Interests of such Guarantor then held by the Issuer and the
Restricted Subsidiaries;

     (2) if such Guarantor is designated as an Unrestricted Subsidiary or otherwise ceases
to be a Restricted Subsidiary, in each case in accordance with the provisions of
this Indenture, upon effectiveness of such designation or when it first ceases to be a
Restricted Subsidiary, respectively; or

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     (3) if such Guarantor shall not guarantee any Indebtedness of the Issuer (other than if
such Guarantor no longer guarantees any Indebtedness of the Issuer as a result of payment
under any guarantee of any such Indebtedness by any Guarantor).

          The Trustee shall execute an appropriate instrument prepared by the Issuer evidencing the
release of a Guarantor from its obligations under its Note Guarantee and this Indenture upon
receipt of a request by the Issuer or such Guarantor accompanied by an Officers’ Certificate and an
Opinion of Counsel certifying as to the compliance with this Section 11.05; provided, however, that
the legal counsel delivering such Opinion of Counsel may rely as to matters of fact on one or more
Officers’ Certificates of the Issuer.

          Nothing contained in this Indenture or in any of the Notes shall prevent any consolidation or
merger of a Guarantor with or into the Issuer (in which case such Guarantor shall no longer be a
Guarantor) or another Guarantor or shall prevent any sale or conveyance of the property of a
Guarantor as an entirety or substantially as an entirety to the Issuer or another Guarantor.

ARTICLE TWELVE

MISCELLANEOUS

SECTION 12.01. Trust Indenture Act Controls.

          If any provision of this Indenture limits, qualifies, or conflicts with another provision
which is required or deemed to be included in this Indenture by the Trust Indenture Act, such
required or deemed provision shall control.

SECTION 12.02. Notices.

          Any notices or other communications required or permitted hereunder shall be in writing, and
shall be sufficiently given if made by hand delivery, by telex, by nationally recognized overnight
courier service, by telecopier or registered or certified mail, postage prepaid, return receipt
requested, addressed as follows:

          if to the Issuer or a Guarantor:

	 	 	 
	

	 	c/o Communications & Power Industries, Inc.
	

	 	811 Hansen Way
	

	 	Palo Alto, CA 94303
	

	 	Attention: Joel A. Littman
	 
	 	 
	

	 	Telephone: (650) 846-2900
	

	 	Facsimile: (650) 846-3276

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          if to the Trustee:

	 	 	 
	

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

	 	700 S. Flower Street, Suite 500
	

	 	Los Angeles, CA 90017
	

	 	Attention: Corporate Trust Department
	 
	 	 
	

	 	Telephone: (213) 630-6447
	

	 	Facsimile: (213) 630-6210

          Each of the Issuer and the Trustee by written notice to each other such Person may designate
additional or different addresses for notices to such Person. Any notice or communication to the
Issuer and the Trustee, shall be deemed to have been given or made as of the date so delivered if
personally delivered; when replied to; when receipt is acknowledged, if telecopied; five (5)
calendar days after mailing if sent by registered or certified mail, postage prepaid (except that a
notice of change of address shall not be deemed to have been given until actually received by the
addressee); and next Business Day if by nationally recognized overnight courier service.

          Any notice or communication mailed to a Holder shall be mailed to him by first class mail or
other equivalent means at his address as it appears on the registration books of the Registrar and
shall be sufficiently given to him if so mailed within the time prescribed.

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

SECTION 12.03. Communications by Holders with Other Holders.

          Holders may communicate pursuant to Trust Indenture Act § 312(b) with other Holders with
respect to their rights under this Indenture, the Notes or the Note Guarantees. The Issuer, the
Trustee, the Registrar and any other Person shall have the protection of Trust Indenture Act §
312(c).

SECTION 12.04. Certificate and Opinion as to Conditions Precedent.

          Upon any request or application by the Issuer to the Trustee to take any action under this
Indenture, the Issuer shall furnish to the Trustee at the request of the Trustee:

     (1) an Officers’ Certificate, in form and substance satisfactory to the Trustee,
stating that, in the opinion of the signers, all conditions precedent to be performed or
effected by the Issuer, if any, provided for in this Indenture relating to the proposed
action have been complied with; and

     (2) an Opinion of Counsel stating that, in the opinion of such counsel, all such
conditions precedent have been complied with.

-88-

 

SECTION 12.05. Statements Required in Certificate or Opinion.

          Each certificate or opinion with respect to compliance with a condition or covenant provided
for in this Indenture, other than the Officers’ Certificate required by Section 4.06, 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 statements or opinions contained in such certificate or opinion are 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 or satisfied; and

     (4) a statement as to whether or not, in the opinion of each such Person, such
condition or covenant has been complied with; provided, however, that with respect to
matters of fact, an Opinion of Counsel may rely on an Officers’ Certificate or certificates
of public officials.

SECTION 12.06. Rules by Paying Agent or Registrar.

          The Paying Agent or Registrar may make reasonable rules and set reasonable requirements for
their functions.

SECTION 12.07. Legal Holidays.

          If a payment date is not a Business Day, payment may be made on the next succeeding day that
is a Business Day.

SECTION 12.08. Governing Law.

          This Indenture, the Notes and the Note Guarantees will be governed by and construed in
accordance with the laws of the State of New York.

SECTION 12.09. No Adverse Interpretation of Other Agreements.

          This Indenture may not be used to interpret another indenture, loan or debt agreement of any
of the Issuer or any of its Subsidiaries. Any such indenture, loan or debt agreement may not be
used to interpret this Indenture.

SECTION 12.10. No Recourse Against Others.

          No director, officer, employee, incorporator, stockholder, member or manager of the Issuer or
any Guarantor shall have any liability for any obligations of the Issuer under the

-89-

 

Notes or this Indenture or of any Guarantor under its Note Guarantee or this Indenture for any
claim based on, in respect of, or by reason of, such obligations or their creation. Each Holder of
Notes by accepting a Note waives and releases all such liability. Such waiver and release are part
of the consideration for issuance of the Notes.

SECTION 12.11. Successors.

          All agreements of the Issuer and the Guarantors in this Indenture, the Notes and the Note
Guarantees shall bind their respective successors. All agreements of the Trustee in this Indenture
shall bind its successor.

SECTION 12.12. Duplicate Originals.

          All parties may sign any number of copies of this Indenture. Each signed copy or counterpart
shall be an original, but all of them together shall represent the same agreement.

SECTION 12.13. Severability.

          To the extent permitted by applicable law, in case any one or more of the provisions in this
Indenture, in the Notes or in the Note Guarantees shall be held invalid, illegal or unenforceable,
in any respect for any reason, the validity, legality and enforceability of any such provision in
every other respect and of the remaining provisions shall not in any way be affected or impaired
thereby, it being intended that all of the provisions hereof shall be enforceable to the full
extent permitted by law.

SECTION 12.14. Waiver of Substantive Consolidation Claims.

          The Trustee and each Holder and beneficial owner of Notes, by accepting a Note, agree that, in
any proceeding under the U.S. Bankruptcy Code or any proceeding under any similar law, they will
not, directly or indirectly, request, join in or support any request, or provide any assistance or
encouragement or solicit any other person to make any request, for substantive consolidation of the
Issuer with any one or more of its Subsidiaries or for a determination that piercing the corporate
veil, alter ego or any similar theory is applicable to the Issuer and one or more of its
Subsidiaries and waive any and all rights they may have to do so. In the event that the Issuer is
substantively consolidated with one or more of its Subsidiaries, the Trustee and each Holder and
beneficial owner agree that they will not benefit from such substantive consolidation and will be
treated as if the substantive consolidation did not occur (and any such benefit that would have
accrued to the Holders shall be turned over to the creditors of the Subsidiary or Subsidiaries that
are so substantively consolidated). The Trustee and each Holder and beneficial owner acknowledge
that the lenders under the senior secured credit facilities of CPI are expressly relying on the
separateness of the Issuer from its Subsidiaries, and agree that such lenders, the holders of the
8% senior subordinated notes due 2012 of CPI and other creditors of Subsidiaries of the Issuer are
entitled to rely on the agreements and waivers in this paragraph. The provisions of this paragraph
are not binding on creditors of the Issuer other than the Trustee and the Holders and beneficial
owners of Notes, in their capacities as such.

-90-

 

SIGNATURES

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

	 	 	 	 	 
	 	 	CPI HOLDCO, INC., as Issuer
	 

	

	 	By:
	 	 
	

	 	 
	 	

	

	 	 	 	Name:
	

	 	 	 	Title:

S-1

 

	 	 	 
	

	 	THE BANK OF NEW YORK TRUST
	

	 	     COMPANY, N.A.,
	

	 	as Trustee

	 	 	 	 	 
	

	 	By:
	 	 
	

	 	 
	 	

	

	 	 	 	Name:
	

	 	 	 	Title:

S-2

 

EXHIBIT A

[Insert the Global Note Legend, if applicable pursuant to the provisions of the Indenture]

[Insert the Private Placement Legend, if applicable pursuant to the provisions of the Indenture]

CPI HOLDCO, INC.

Floating Rate Senior Notes 2015

	 	 	 	 	 
	No.

	 	 	 	CUSIP No.
$

          THIS NOTE IS ISSUED WITH ORIGINAL ISSUE DISCOUNT FOR PUR-POSES OF SECTION 1271 ET SEQ. OF THE
INTERNAL REVENUE CODE. A HOLDER MAY OBTAIN THE ISSUE PRICE, AMOUNT OF ORIGINAL ISSUE DISCOUNT,
ISSUE DATE AND YIELD TO MATURITY FOR SUCH NOTES BY SUBMITTING A REQUEST FOR SUCH INFORMATION TO
THE ISSUER AT THE FOLLOWING ADDRESS: 811 HANSEN WAY, PALO ALTO, CA 94303 ATTENTION: CHIEF FINANCIAL
OFFICER.

          CPI HOLDCO, INC., a Delaware corporation (the “Issuer”), for value received promise to pay to
___or its registered assigns, the principal sum of [or such
other amount as is provided in a schedule attached hereto] a  on February 1,
2015.

          Interest Payment Dates: February 1 and August 1, commencing August 1, 2005.

          Record Dates: January 15 and July 15.

          Reference is made to the further provisions of this Note contained herein, which will for all
purposes have the same effect as if set forth at this place.

	a	 	This language should be included only if
the Note is issued in global form.

A-1

 

          IN WITNESS WHEREOF, the Issuer has caused this Note to be signed manually or by facsimile by
its duly authorized officer.

Dated:

	 	 	 
	

	 	CPI HOLDCO, INC., as Issuer

	 	 	 	 	 
	 	 	 
	 	By:  	
 	 
	

	 
	
	 
	 	 	Name:	 	 
	 	 	Title:  	 	 
	 

A-2

 

[FORM OF] TRUSTEE’S CERTIFICATE OF AUTHENTICATION

          This is one of the Floating Rate Senior Notes due 2015 described in the within-mentioned
Indenture.

Dated:

	 	 	 
	

	 	THE BANK OF NEW YORK TRUST
	

	 	     COMPANY, N.A.,
	

	 	     as Trustee

	 	 	 	 	 
	 	 	 
	 	By:  	
 	 
	

	 
	
	 
	 	 	               Authorized Signatory 	 
	 	 	 	 

A-3

 

	 	 	 	 	 

(Reverse of Note)

Floating Rate Senior Notes due 2015

          Capitalized terms used herein shall have the meanings assigned to them in the Indenture
referred to below unless otherwise indicated.

          SECTION 1. Interest. CPI Holdco, Inc., a Delaware corporation (the “Issuer”),
promises to pay interest at a rate per annum, reset semi-annually, equal to LIBOR plus the
Applicable Margin, as determined by an agent appointed by the Issuer to calculate LIBOR for
purposes of the Indenture (the “Calculation Agent”), which shall initially be the Trustee. The
Issuer will pay interest semi-annually on February 1 and August 1 of each year, or if any such day
is not a Business Day, on the next succeeding Business Day (each an “Interest Payment Date”),
commencing August 1, 2005. Interest on the Notes will accrue from the most recent date to which
interest has been paid or, if no interest has been paid, from the date of original issuance. The
Issuer shall pay interest (including post-petition interest in any proceeding under any Bankruptcy
Law) on overdue principal and premium, if any, from time to time on demand to the extent lawful at
the interest rate applicable to the Notes; it shall pay interest (including post-petition interest
in any proceeding under any Bankruptcy Law) on overdue installments of interest (without regard to
any applicable grace periods) from time to time on demand at the same rate to the extent lawful.
Interest will be computed on the basis of a 360-day year of twelve 30-day months.

          For any Interest Payment Date on or after August 1, 2006 and on or prior to February 1, 2010,
interest will be payable in cash or, at the election of the Issuer made prior to the relevant
Determination Date, through the issuance of Additional Notes in a principal amount equal to such
interest amount. If the Issuer makes the election to pay interest through the issuance of
Additional Notes, it will mail, or cause to be mailed, to the Holders a notice of such election on
or before the relevant Determination Date. The Additional Notes issued to pay interest will be
identical to the originally issued Notes except that interest will begin to accrue from the date
they are issued rather than the Issue Date. For any Interest Payment Date before August 1, 2006 or
after February 1, 2010, interest will be payable only in cash.

          The Notes will be issued in registered form, without coupons, and in denominations of $1,000
and integral multiples of $1,000; provided, however, that Additional Notes issued in payment of
interest or Additional Interest will be issued in denominations of $1 and integral multiples of $1.

          Set forth below are certain of the defined terms used in this Section 1 relating to the
calculation of the interest rate of the Notes.

          “Applicable Margin” means (1) for any Interest Payment Date on or after August 1, 2006 and on
or before February 1, 2010, (a) unless clause (b) applies, 575 basis points (the “Cash Margin”) and
(b) if the Issuer elects to pay interest through the issuance of Additional Notes, the Cash Margin
plus the Applicable Step-Up and (2) for any Interest Payment Date before August 1, 2006 or after
February 1, 2010, the Cash Margin.

A-4

 

          “Applicable Step-Up” means (1) for the first interest payment elected to be made through the
issuance of Additional Notes, 100 basis points, (2) for the second interest payment elected to be
made through the issuance of Additional Notes (whether or not consecutive), 200 basis points, (3)
for the third interest payment elected to be made through the issuance of Additional Notes (whether
or not consecutive), 300 basis points and (4) for all subsequent interest payments elected to be
made through the issuance of Additional Notes (whether or not consecutive), 400 basis points.

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

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

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

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

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

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

A-5

 

          All percentages resulting from any of the above calculations will be rounded, if necessary, to
the nearest one hundred-thousandth of a percentage point, with five one-millionths of a percentage
point being rounded upwards (e.g., 9.876545% (or 0.09876545) being rounded to 9.87655% (or
0.0987655)) and all dollar amounts used in or resulting from such calculations will be rounded to
the nearest cent (with one-half cent being rounded upwards).

          The interest rate on the Notes will in no event be higher than the maximum rate permitted by
New York law as the same may be modified by United States law of general application.

          SECTION 2. Method of Payment. The Issuer will pay interest on the Notes to the
Persons who are registered Holders of Notes at the close of business on the January 15 or July 15
next preceding the Interest Payment Date, even if such Notes are canceled after such record date
and on or before such Interest Payment Date, except as provided in Section 2.12 of the Indenture
with respect to defaulted interest. With respect to any cash payments, the Issuer shall pay
principal, premium, if any, and interest on the Notes in such coin or currency of the United States
of America as at the time of payment is legal tender for payment of public and private debts (“U.S.
Legal Tender”). Principal, premium, if any, and cash interest on the Notes will be payable at the
office or agency of the Issuer maintained for such purpose except that, at the option of the
Issuer, the payment of interest may be made by check mailed to the Holders of the Notes at their
respective addresses set forth in the register of Holders of Notes; provided that for Holders of at
least $5.0 million in principal amount of the Notes that have given wire transfer instructions to
the Issuer at least ten Business Days prior to the applicable payment date, the Issuer will make
all payments of principal, premium and cash interest by wire transfer of immediately available
funds to the accounts specified by the Holders thereof. With respect to any payments of interest
and Additional Interest in the form of Additional Notes, payment shall be made by deposit of such
Additional Notes into the account specified by the Holder or Holders thereof to the Issuer, through
the Paying Agent or otherwise. Until otherwise designated by the Issuer, the Issuer’s office or
agency in New York will be the office of the Trustee maintained for such purpose.

          SECTION 3. Paying Agent and Registrar. Initially, The Bank of New York Trust
Company, N.A., the Trustee under the Indenture, will act as Paying Agent, Calculation Agent and
Registrar. The Issuer may change any Paying Agent or Registrar without notice to any Holder.
Except as provided in the Indenture, the Issuer or any of their Subsidiaries may act in any such
capacity.

          SECTION 4. Indenture. The Issuer issued the Notes under an Indenture dated as of
February 22, 2005 (“Indenture”) by and among the Issuer and the Trustee. The terms of the Notes
include those stated in the Indenture and those made part of the Indenture by reference to the
Trust Indenture Act of 1939, as amended (15 U.S. Code §§ 77aaa-77bbbb) (the “Trust Indenture Act”).
The Notes are subject to all such terms, and Holders are referred to the Indenture and the Trust
Indenture Act for a statement of such terms.

          SECTION 5. Optional Redemption. At any time or from time to time prior to
February 1, 2007, the Issuer, at its option, may redeem the Notes in whole or in part, at a price
equal to 100% of the principal amount thereof plus the Applicable Premium as of, together with

A-6

 

accrued and unpaid interest, if any, to, the Redemption Date (subject to the right of Holders
of record on the relevant record date to receive interest due on the relevant Interest Payment
Date).

          At any time or from time to time on or after February 1, 2007, the Issuer, at its option, may
redeem the Notes, in whole or in part, at the redemption prices (expressed as percentages of
principal amount) set forth below, together with accrued and unpaid interest thereon, if any, to
the Redemption Date (subject to the right of Holders of record on the relevant record date to
receive interest due on the relevant Interest Payment Date), if redeemed during the 12-month period
beginning on February 1 of the years indicated:

	 	 	 	 	 
	 	 	Optional	 
	Year	 	Redemption Price	 
	2007
	 	 	103.00	%
	2008
	 	 	102.00	%
	2009
	 	 	101.00	%
	2010 and thereafter
	 	 	100.00	%

          SECTION 6. Optional Redemption With Proceeds From Equity Offerings. At any time
or from time to time prior to February 1, 2007, the Issuer, at its option, may redeem up to 35% of
the aggregate principal amount of the Notes with the net cash proceeds of one or more Qualified
Equity Offerings at a redemption price equal to 100% of the principal amount of the Notes to be
redeemed, plus a premium equal to the interest rate per annum on the Notes applicable on the date
on which the notice of redemption is given, plus accrued and unpaid interest thereon, if any, to
the Redemption Date; provided that (1) at least 65% of the aggregate principal amount of Notes
issued under the Indenture remains outstanding immediately after the occurrence of such redemption
and (2) the redemption occurs within 90 days of the date of the closing of any such Qualified
Equity Offering.

          SECTION 7. Notice of Redemption. Notice of redemption will be mailed by first class
mail at least 30 days but not more than 60 days before the redemption date to each Holder of Notes
to be redeemed at its registered address. Notes in denominations larger than $1,000 may be
redeemed in part. If any Note is to be redeemed in part only, the notice of redemption that
relates to such Note shall state the portion of the principal amount thereof to be redeemed. A new
Note in principal amount equal to the unredeemed portion thereof will be issued in the name of the
Holder thereof upon cancellation of the original Note. On and after the redemption date interest
ceases to accrue on Notes or portions thereof called for redemption.

          SECTION 8. Mandatory Redemption. For the avoidance of doubt, an offer to purchase
pursuant to Section 8 hereof shall not be deemed a redemption. The Issuer shall not be required to
make mandatory redemption payments with respect to the Notes.

          SECTION 9. Repurchase at Option of Holder. Upon the occurrence of a Change of
Control, and subject to certain conditions set forth in the Indenture, the Issuer will be required
to offer to purchase all of the outstanding Notes at a purchase price equal to 101% of the
principal amount thereof, plus accrued and unpaid interest, if any, thereon to the date of
repurchase.

A-7

 

          The Issuer is, subject to certain conditions and exceptions, obligated to make an offer to
purchase Notes at 100% of their principal amount, plus accrued and unpaid interest, if any, thereon
to the date of repurchase, with certain net cash proceeds of certain sales or other dispositions of
assets in accordance with the Indenture.

          SECTION 10. Denominations, Transfer, Exchange. The Notes are in registered form
without coupons in denominations of $1,000 and integral multiples of $1,000; provided, however,
that Additional Notes issued in payment of interest or Additional Interest will be issued in
denominations of $1 and integral multiples of $1. The transfer of Notes may be registered and
Notes may be exchanged as provided in the Indenture. The Registrar and the Trustee may require a
Holder, among other things, to furnish appropriate endorsements and transfer documents and the
Issuer may require a Holder to pay any taxes and fees required by law or permitted by the
Indenture. The Issuer and the Registrar are not required to transfer or exchange any Note selected
for redemption. Also, the Issuer and the Registrar are not required to transfer or exchange any
Notes for a period of 15 days before a selection of Notes to be redeemed.

          SECTION 11. Persons Deemed Owners. The registered Holder of a Note may be treated as
its owner for all purposes.

          SECTION 12. Amendment, Supplement and Waiver. Subject to certain exceptions, the
Indenture and the Notes may be amended or supplemented with the written consent of the Holders of
at least a majority in aggregate principal amount of the Notes then outstanding, and any existing
Default or compliance with any provision may be waived with the consent of the Holders of a
majority in aggregate principal amount of the Notes then outstanding. Without notice to or consent
of any Holder, the parties thereto may amend or supplement the Indenture and the Notes to, among
other things, cure any ambiguity, defect or inconsistency in the Indenture, provide for
uncertificated Notes in addition to certificated Notes, comply with any requirements of the SEC in
connection with the qualification of the Indenture under the Trust Indenture Act, or make any
change that does not materially adversely affect the rights of any Holder of a Note.

          SECTION 13. Defaults and Remedies. If a Default occurs and is continuing, the
Trustee or the Holders of at least 25% in principal amount of the then outstanding Notes generally
may declare all the Notes to be due and payable immediately. Notwithstanding the foregoing, in the
case of a Default arising from certain events of bankruptcy or insolvency as set forth in the
Indenture, with respect to the Issuer, all outstanding Notes will become due and payable without
further action or notice. Holders of the Notes may not enforce the Indenture or the Notes except
as provided in the Indenture. Subject to certain limitations, Holders of a majority in principal
amount of the then outstanding Notes may direct the Trustee in its exercise of any trust or power.
The Trustee may withhold from Holders of the Notes notice of any continuing Default (except a
Default relating to the payment of principal or interest including an accelerated payment or the
failure to make a payment on the Change of Control Payment Date or the Net Proceeds Payment Date
pursuant to a Net Proceeds Offer) or a Default in complying with the provisions of Article Five of
the Indenture if it determines that withholding notice is in their interest. The Holders of a
majority in aggregate principal amount of the Notes then outstanding by notice to the Trustee may
on behalf of the Holders of all of the Notes waive any existing Default and its

A-8

 

consequences under the Indenture except a continuing Default in the payment of interest on, or
the principal of, or the premium on, the Notes.

          SECTION 14. Restrictive Covenants. The Indenture contains certain covenants that,
among other things, limit the ability of the Issuer and its Restricted Subsidiaries to make
restricted payments, to incur indebtedness, to create liens, to sell assets, to permit restrictions
on dividends and other payments by Restricted Subsidiaries of the Issuer, to consolidate, merge or
sell all or substantially all of its assets or to engage in transactions with affiliates. The
limitations are subject to a number of important qualifications and exceptions. The Issuer must
annually report to the Trustee on compliance with such limitations and other provisions in the
Indenture.

          SECTION 15. No Recourse Against Others. No director, officer, employee,
incorporator, stockholder, member or manager of the Issuer or any Guarantor, if any, shall have any
liability for any obligations of the Issuer under the Notes or the Indenture, or of any Guarantor,
if any, under its Note Guarantee or the Indenture or for any claim based on, in respect of, or by
reason of, such obligations or their creation. Each Holder of Notes by accepting a Note waives and
releases all such liability. The waiver and release are part of the consideration for issuance of
the Notes.

          SECTION 16. Note Guarantees. This Note will be entitled to the benefits of certain
Note Guarantees, if any, made for the benefit of the Holders. Reference is hereby made to the
Indenture for a statement of the respective rights, limitations of rights, duties and obligations
thereunder of the Guarantors, the Trustee and the Holders.

          SECTION 17. Trustee Dealings with the Issuer. Subject to certain terms, the Trustee
under the Indenture, in its individual or any other capacity, may become the owner or pledgee of
Notes and may otherwise deal with the Issuer, their Subsidiaries or their respective Affiliates as
if it were not the Trustee.

          SECTION 18. Authentication. This Note shall not be valid until authenticated by the
manual signature of the Trustee or an authenticating agent.

          SECTION 19. Abbreviations. Customary abbreviations may be used in the name of a
Holder or an assignee, such as: TEN COM (= tenants in common), TEN ENT (= tenants by the
entirety), JT TEN (= joint tenants with right of survivorship and not as tenants in common), CUST
(= Custodian), and U/G/M/A (= Uniform Gifts to Minors Act).

          SECTION 20. Additional Rights of Holders of Restricted Global Notes and Restricted
Definitive Notes. Pursuant to, but subject to the exceptions in, the Registration Rights
Agreement, the Issuer and the Guarantors will be obligated to consummate an exchange offer pursuant
to which the Holder of this Note shall have the right to exchange this Note for an Floating Rate
Senior Note due 2015 of the Issuer which shall have been registered under the Securities Act, in
like principal amount and having terms identical in all material respects to this Note (except that
such note shall not be entitled to Additional Interest and shall not contain terms with respect to
transfer restrictions). The Holders shall be entitled to receive certain Additional Interest in
the event such exchange offer is not consummated or the Notes are not offered for resale

A-9

 

and upon certain other conditions, all pursuant to and in accordance with the terms of the
Registration Rights Agreement. a

          SECTION 21. CUSIP and ISIN Numbers. Pursuant to a recommendation promulgated by
the Committee on Uniform Security Identification Procedures, the Issuer has caused CUSIP and ISIN
numbers to be printed on the Notes and the Trustee may use CUSIP or ISIN numbers in notices of
redemption as a convenience to Holders. No representation is made as to the accuracy of such
numbers either as printed on the Notes or as contained in any notice of redemption and reliance may
be placed only on the other identification numbers placed thereon.

          SECTION 22. Governing Law. This Note shall be governed by, and construed in
accordance with, the laws of the State of New York.

          The Issuer will furnish to any Holder upon written request and without charge a copy of the
Indenture.

	a	 	This Section not to appear on Exchange
Notes or Private Exchange Notes or Additional Notes unless required by the
terms of such Additional Notes.

A-10

 

ASSIGNMENT FORM

I or we assign and transfer this Note to

	 	 	 
	 
	 
	 	 
	 
	 	 
	 
	(Print or type name, address and zip code of assignee or transferee)
	 
	 	 
	 
	(Insert Social Security or other identifying number of assignee or transferee)

and irrevocably appoint _______________________________________ agent to transfer this Note on the
books of the Issuer. The agent may substitute another to act for him.

	 	 	 
	Dated:                                         

	 	Signed:                                                                                 
	

	 	                    (Sign exactly as name appears on
	

	 	                    the other side of this Note)
	 
	 	 
	Signature Guarantee:

	 	                                                                                                    
	

	 	Participant in a recognized Signature Guarantee
	

	 	Medallion Program (or other signature guarantor
	

	 	program reasonably acceptable to the Trustee)

          In connection with any transfer of this Note occurring prior to the date which is the date
following the second anniversary of the original issuance of this Note, the undersigned confirms
that it has not utilized any general solicitation or general advertising in connection with the
transfer and is making the transfer pursuant to one of the following:

[Check One]

	 	 	 
	(1) ___

	 	to the Issuer or a subsidiary thereof; or
	 
	 	 
	(2) ___

	 	to a person who the transferor reasonably believes is a “qualified institutional buyer”
pursuant to and in compliance with Rule 144A under the Securities Act of 1933, as amended (the
“Securities Act”); or
	 
	 	 
	(3) ___

	 	to an institutional “accredited investor” (as defined in Rule 501(a)(1), (2), (3) or (7)
under the Securities Act) that has furnished to the Trustee a signed letter containing certain
representations and agreements (the form of which letter can be obtained from the Trustee); or
	 
	 	 
	(4) ___

	 	outside the United States to a non-“U.S. person” as defined in Rule 902 of Regulation S
under the Securities Act in compliance with Rule 904 of Regulation S under the Securities Act;
or

 

 

	 	 	 
	(5) ___

	 	pursuant to the exemption from registration provided by Rule 144 under the Securities
Act; or
	 
	 	 
	(6) ___

	 	pursuant to an effective registration statement under the Securities Act.

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

          o       The transferee is an Affiliate of the Issuer.

          Unless one of the foregoing items (1) through (6) is checked, the Trustee will refuse to
register any of the Notes evidenced by this certificate in the name of any person other than the
registered Holder thereof; provided, however, that if item (3), (4) or (5) is checked, the Issuer
or the Trustee may require, prior to registering any such transfer of the Notes, in their sole
discretion, such written legal opinions, certifications (including an investment letter in the case
of box (3) or (4)) and other information as the Trustee or the Issuer has reasonably requested 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.

          If none of the foregoing items (1) through (6) are checked, the Trustee or Registrar shall not
be obligated to register this Note in the name of any person other than the Holder hereof unless
and until the conditions to any such transfer of registration set forth herein and in Section 2.16
of the Indenture shall have been satisfied.

	 	 	 
	Dated:
	 	Signed:
	

	 	

	

	 	(Sign exactly as name appears on the other
	

	 	side of this Note)
	 
	 	 

	 	 	 
	Signature Guarantee:  	 	

	 	 	 
	

	 	Participant in a recognized Signature Guarantee Medallion Program (or other
signature guarantor program reasonably acceptable to the Trustee)

TO BE COMPLETED BY PURCHASER IF (2) ABOVE IS CHECKED

          The undersigned represents and warrants that it is purchasing this Note for its own account or
an account with respect to which it exercises sole investment discretion and that it and any such
account is a “qualified institutional buyer” within the meaning of Rule 144A under the Securities
Act and is aware that the sale to it is being made in reliance on Rule 144A and acknowledges that
it has received such information regarding the Issuer as the undersigned has requested pursuant to
Rule 144A or has determined not to request such information and that it is aware that the
transferor is relying upon the undersigned’s foregoing representations in order to claim the
exemption from registration provided by Rule 144A.

	 	 	 
	Dated:

	 	 
	

	 	

	

	 	NOTICE: To be executed by an executive officer

 - 2 -

 

OPTION OF HOLDER TO ELECT PURCHASE

          If you want to elect to have this Note purchased by the Issuer pursuant to Section 4.09 or
Section 4.13 of the Indenture, check the appropriate box:

	 	 	 	 	 
	

	 	Section 4.09
[     ]
	 	Section 4.13
[     ]

          If you want to elect to have only part of this Note purchased by the Issuer pursuant to
Section 4.09 or Section 4.13 of the Indenture, state the amount (in denominations of $1,000 and
integral multiples thereof): $___

	 	 	 
	Dated:
	 	Signed:
	

	 	

	

	 	(Sign exactly as name
	

	 	appears on the other
	

	 	side of this Note)

	 	 	 
	Signature Guarantee:

	 	                                                                                
	

	 	Participant in a recognized Signature Guarantee
	

	 	Medallion Program (or other signature guarantor
	

	 	program reasonably acceptable to the Trustee)

 - 3 -

 

SCHEDULE OF EXCHANGES OF INTERESTS IN THE GLOBAL NOTE a

          The following exchanges of a part of this Global Note for an interest in another Global
Note or for a Physical Note, or exchanges of a part of another Global Note or Physical Note for an
interest in this Global Note, have been made:

	 	 	 	 	 	 	 	 	 
	
	 	 	 	 	 	Principal Amount of
	 	Signature of
	
	 	Amount of decrease in
	 	Amount of increase in
	 	this Global Note
	 	authorized officer of
	
	 	Principal Amount of
	 	Principal Amount of
	 	following such decrease
	 	Trustee or Note
	Date of Exchange
	 	this Global Note
	 	this Global Note
	 	(or increase)
	 	Custodian
	 
	 	 
	 	 
	 	 
	 	 

	a	 	This schedule should be included only if
the Note is issued in global form.

 - 4 -

 

EXHIBIT B

FORM OF LEGENDS

          Each Global Note and Physical Note that constitutes a Restricted Security shall bear the
following legend (the “Private Placement Legend”) on the face thereof until after the second
anniversary of the Issue Date, unless otherwise agreed by the Issuer and the Holder thereof or if
such legend is no longer required by Section 2.16(f) of the Indenture:

     THE SECURITY (OR ITS PREDECESSOR) EVIDENCED BY THIS CERTIFICATE WAS ORIGINALLY ISSUED
IN A TRANSACTION EXEMPT FROM REGISTRATION UNDER SECTION 5 OF THE U.S. SECURITIES ACT OF
1933, AND THE SECURITY EVIDENCED BY THIS CERTIFICATE MAY NOT BE OFFERED, SOLD, PLEDGED OR
OTHERWISE TRANSFERRED IN THE ABSENCE OF REGISTRATION OR AN APPLICABLE EXEMPTION FROM THE
SECURITIES ACT. EACH PURCHASER OF THE SECURITY EVIDENCED BY THIS CERTIFICATE (1) BY ITS
ACQUISITION OF THE SECURITY REPRESENTS THAT (A) IT IS A “QUALIFIED INSTITUTIONAL BUYER (AS
DEFINED IN RULE 144A UNDER THE SECURITIES ACT) OR (B) IT IS NOT A U.S. PERSON AND IS
ACQUIRING THE SECURITY EVIDENCED BY THIS CERTIFICATE IN AN OFFSHORE TRANSACTION IN
COMPLIANCE WITH REGULATION S UNDER THE SECURITIES ACT, AND (2) IS HEREBY NOTIFIED THAT THE
SELLER MAY BE RELYING ON THE EXEMPTION FROM THE PROVISIONS OF SECTION 5 OF THE SECURITIES
ACT PROVIDED BY RULE 144A OR ANOTHER EXEMPTION UNDER THE SECURITIES ACT. THE HOLDER OF THE
SECURITY EVIDENCED BY THIS CERTIFICATE AGREES FOR THE BENEFIT OF THE ISSUER AND THE
GUARANTORS THAT (X) THIS SECURITY MAY BE RESOLD, PLEDGED OR OTHERWISE TRANSFERRED ONLY
(1)(A) TO A PERSON WHO THE SELLER REASONABLY BELIEVES IS A QUALIFIED INSTITUTIONAL BUYER (AS
DEFINED IN RULE 144A UNDER THE SECURITIES ACT) IN A TRANSACTION MEETING THE REQUIREMENTS OF
RULE 144A, (B) IN A TRANSACTION MEETING THE REQUIREMENTS OF RULE 144 UNDER THE SECURITIES
ACT, IF AVAILABLE, (C) OUTSIDE THE UNITED STATES TO A PERSON THAT IS NOT A U.S. PERSON (AS
DEFINED IN RULE 902 UNDER THE SECURITIES ACT) IN A TRANSACTION MEETING THE REQUIREMENTS OF
REGULATION S UNDER THE SECURITIES ACT, (D) TO AN ACCREDITED INVESTOR (WITHIN THE MEANING OF
RULE 501(a)(1), (2), (3), OR (7) UNDER THE SECURITIES ACT) (AN “INSTITUTIONAL ACCREDITED
INVESTOR”) THAT IS PURCHASING AT LEAST $250,000 OF NOTES FOR ITS OWN ACCOUNT OR FOR THE
ACCOUNT OF AN INSTITUTIONAL ACCREDITED INVESTOR (AND BASED UPON AN OPINION OF COUNSEL IF THE
ISSUER SO REQUESTS), (2) TO THE ISSUER OR ANY OF ITS SUBSIDIARIES OR (3) UNDER AN EFFECTIVE
REGISTRATION STATEMENT AND, IN EACH CASE, IN COMPLIANCE WITH ANY APPLICABLE

B-1

 

SECURITIES LAWS OF ANY STATE OF THE UNITED STATES OR ANY OTHER APPLICABLE JURISDICTION
AND (Y) THE HOLDER WILL, AND EACH SUBSEQUENT HOLDER IS REQUIRED TO, NOTIFY ANY PURCHASER
FROM IT OF THE SECURITY EVIDENCED BY THIS CERTIFICATE OF THE RESALE RESTRICTIONS DESCRIBED
IN (X) ABOVE. IN CONNECTION WITH ANY TRANSFER OF THIS SECURITY WITHIN TWO YEARS AFTER THE
ORIGINAL ISSUANCE OF THIS SECURITY OR IF THE PROPOSED TRANSFEREE IS AN INSTITUTIONAL
ACCREDITED INVESTOR, THE HOLDER MUST, PRIOR TO SUCH TRANSFER, FURNISH TO THE TRUSTEE AND THE
ISSUER SUCH CERTIFICATIONS, LEGAL OPINIONS OR OTHER INFORMATION AS EITHER OF THEM 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.

          Each Global Note authenticated and delivered hereunder shall also bear the following legend:

     THIS NOTE IS A GLOBAL NOTE WITHIN THE MEANING OF THE INDENTURE HEREINAFTER REFERRED TO
AND IS REGISTERED IN THE NAME OF A DEPOSITORY OR A NOMINEE OF A DEPOSITORY OR A SUCCESSOR
DEPOSITORY. THIS NOTE IS NOT EXCHANGEABLE FOR NOTES REGISTERED IN THE NAME OF A PERSON
OTHER THAN THE DEPOSITORY OR ITS NOMINEE EXCEPT IN THE LIMITED CIRCUMSTANCES DESCRIBED IN
THE INDENTURE, AND NO TRANSFER OF THIS NOTE (OTHER THAN A TRANSFER OF THIS NOTE AS A WHOLE
BY THE DEPOSITORY TO A NOMINEE OF THE DEPOSITORY OR BY A NOMINEE OF THE DEPOSITORY TO THE
DEPOSITORY OR ANOTHER NOMINEE OF THE DEPOSITORY) MAY BE REGISTERED EXCEPT IN THE LIMITED
CIRCUMSTANCES DESCRIBED IN THE INDENTURE.

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

     TRANSFERS OF THIS GLOBAL NOTE SHALL BE LIMITED TO TRANSFERS IN WHOLE, BUT NOT IN PART,
TO NOMINEES OF CEDE & CO. OR TO A SUCCESSOR THEREOF OR SUCH SUCCESSOR’S NOMINEE AND
TRANSFERS

B-2

 

OF PORTIONS OF THIS GLOBAL NOTE SHALL BE LIMITED TO TRANSFERS MADE IN ACCORDANCE WITH
THE RESTRICTIONS SET FORTH IN SECTION 2.16 OF THE INDENTURE.

     Each Temporary Regulation S Global Note shall also bear the following legend:

THIS GLOBAL NOTE IS A TEMPORARY GLOBAL NOTE FOR PURPOSES OF REGULATION S UNDER THE UNITED
STATES SECURITIES ACT OF 1933, AS AMENDED (THE “SECURITIES ACT”). NEITHER THIS TEMPORARY
GLOBAL NOTE NOR ANY INTEREST HEREIN MAY BE OFFERED, SOLD OR DELIVERED, EXCEPT AS PERMITTED
UNDER THE INDENTURE REFERRED TO BELOW.

NO BENEFICIAL OWNERS OF THIS TEMPORARY GLOBAL NOTE SHALL BE ENTITLED TO RECEIVE PAYMENT OF
PRINCIPAL OR INTEREST HEREON UNLESS THE REQUIRED CERTIFICATIONS HAVE BEEN DELIVERED PURSUANT
TO THE TERMS OF THE INDENTURE.

B-3

 

EXHIBIT C

Form of Certificate To Be

Delivered in Connection with

Transfers to Non-QIB Institutional Accredited Investors

[      ], [ ]

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

700 S. Flower Street, Suite 500

Los Angeles, CA 90017

T: (213) 630-6447

F: (213) 630-6210

Attention: Corporate Trust Department

Ladies and Gentlemen:

          In connection with our proposed purchase of Floating Rate Senior Notes due 2015 (the “Notes”)
of CPI Holdco, Inc., a Delaware corporation (the “Issuer”), we confirm that:

     1. We understand that any subsequent transfer of the Notes is subject to certain
restrictions and conditions set forth in the Indenture relating to the Notes (the
“Indenture”) and the undersigned agrees to be bound by, and not to resell, pledge or
otherwise transfer the Notes except in compliance with, such restrictions and conditions and
the Securities Act of 1933, as amended (the “Securities Act”), and all applicable state
securities laws.

     2. We understand that the offer and sale of the Notes have not been registered under
the Securities Act, and that the Notes may not be offered, sold, pledged or otherwise
transferred except as permitted in the following sentence. We agree, on our own behalf and
on behalf of any accounts for which we are acting as hereinafter stated, that if we should
sell, offer, pledge or otherwise transfer any Notes, we will do so only (i) to the Issuer or
any of its subsidiaries, (ii) inside the United States in a transaction meeting the
requirements of Rule 144A under the Securities Act to a person who we reasonably believe to
be a “qualified institutional buyer” (as defined in Rule 144A under the Securities Act),
(iii) inside the United States to an institutional “accredited investor” (as defined below)
that is purchasing at least $250,000 of Notes for its own account or for the account of an
institutional accredited investor and who, prior to such transfer, furnishes (or has
furnished on its behalf by a U.S. broker-dealer) to the Trustee (as defined in the
Indenture) a signed letter containing certain representations and agreements relating to the
restrictions on transfer of the Notes (the form of which letter can be obtained from the
Trustee), (iv) outside the United States to a person that is not a U.S. person (as defined
in Rule 902 under the Securities Act) in accordance with Regulation S promulgated under the
Securities Act, (v) pursuant to the exemption from registration provided by Rule 144 under
the Securities Act (if available) or (vi) pursuant to an
effective registration state -

C-1

 

ment under the Securities Act, and we further agree to provide to any person purchasing
any of the Notes from us a notice advising such purchaser that resales of the Notes are
restricted as stated herein.

     3. We are not acquiring the Notes for or on behalf of, and will not transfer the Notes
to, any employee benefit plan subject to Title I of the Employee Retirement Income Security
Act of 1974, as amended (“ERISA”), any plan, individual retirement accounts or other
arrangements subject to Section 4975 of the Internal Revenue Code of 1986, as amended (the
“Code”), or provisions under any federal, state, local, or non-U.S. or other laws or
regulations that are similar to such provisions of ERISA of the Code or any entity whose
underlying assets are considered to include “plan assets” of such plans, accounts or
arrangements, except as permitted in the sections entitled “Notice to investors” and
“Certain ERISA considerations” of the Offering Memorandum.

     4. We understand that, on any proposed resale of any Notes, we will be required to
furnish to the Trustee and the Issuer such certification, legal opinions and other
information as the Trustee and the Issuer may reasonably require to confirm that the
proposed sale complies with the foregoing restrictions. We further understand that the
Notes purchased by us will bear a legend to the foregoing effect.

     5. We are an institutional “accredited investor” (as defined in Rule 501(a)(1), (2),
(3) or (7) of Regulation D under the Securities Act) and have such knowledge and experience
in financial and business matters as to be capable of evaluating the merits and risks of our
investment in the Notes, and we and any accounts for which we are acting are each able to
bear the economic risk of our or their investment, as the case may be.

     6. We are acquiring the Notes purchased by us for our account or for one or more
accounts (each of which is an institutional “accredited investor”) as to each of which we
exercise sole investment discretion.

C-2

 

          You, as Trustee, the Issuer, counsel for the Issuer and others are entitled to rely upon this
letter and are irrevocably authorized to produce this letter or a copy hereof to any interested
party in any administrative or legal proceeding or official inquiry with respect to the matters
covered hereby.

	 	 	 	 	 
	 	 	Very truly yours,
	 

	 	 	[Name of Transferee]
	 

	

	 	By:
	 	 
	

	 	 
	 	

	

	 	 	 	Name:
	

	 	 	 	Title:

C-3

 

EXHIBIT D

Form of Certificate To Be Delivered

in Connection with Transfers

 Pursuant to Regulation S 

[     ], [  ]

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

700 S. Flower Street, Suite 500

Los Angeles, CA 90017

T: (213) 630-6447

F: (213) 630-6210

Attention: Corporate Trust Department

	 	 	 	 	 
	

	 	Re:
	 	CPI Holdco, Inc. (the “Issuer”)
	

	 	 	 	Floating Rate Senior Notes due 2015 (the “Notes”) 

Ladies and Gentlemen:

          In connection with our proposed sale of $[      ] aggregate principal amount of the Notes,
we confirm that such sale has been effected pursuant to and in accordance with Regulation S under
the U.S. Securities Act of 1933, as amended (the “Securities Act”), and, accordingly, we represent
that:

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

     (2) either (a) at the time the buy offer was originated, the transferee was outside the
United States or we and any person acting on our behalf reasonably believed that the
transferee was outside the United States, or (b) the transaction was executed in, on or
through the facilities of a designated offshore securities market and neither we nor any
person acting on our behalf knows that the transaction has been prearranged with a buyer in
the United States;

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

     (4) the transaction is not part of a plan or scheme to evade the registration
requirements of the Securities Act; and

     (5) we have advised the transferee of the transfer restrictions applicable to the
Notes.

          You, as Trustee, the Issuer, counsel for the Issuer and others are entitled to rely upon this
letter and are irrevocably authorized to produce this letter or a
copy hereof to any inter -

D-1

 

ested party in any administrative or legal proceedings or official inquiry with respect to the
matters covered hereby. Terms used in this certificate have the meanings set forth in Regulation
S.

	 	 	 	 	 
	 	Very truly yours,

[Name of Transferor]

 	 
	 	By:  	 	 
	 	 	 	 
	 	 	Authorized Signatory 	 
	 

D-2

 

EXHIBIT E

FORM OF CERTIFICATE TO BE DELIVERED IN CONNECTION WITH TRANSFERS

OF TEMPORARY REGULATION S GLOBAL NOTE

___________________,_______

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

700 S. Flower Street, Suite 500

Los Angeles, CA 90017

T: (213) 630-6447

F: (213) 630-6210

Attention: Corporate Trust Department

	 	 	 	 	 
	

	 	Re:
	 	CPI Holdco, (the “Issuer”)
	

	 	 	 	Floating Rate Senior Notes due 2015 (the “Notes”)

Dear Sirs:

          This letter relates to U.S. $ ___principal amount of Notes represented by a
certificate (the “Legended Certificate”) which bears a legend outlining restrictions upon transfer
of such Legended Certificate. Pursuant to Section 2.16(c) of the Indenture (the “Indenture”) dated
as of February [ ], 2005 relating to the Notes, we hereby certify that we are (or we will hold
such securities on behalf of) a person outside the United States (or to an Initial Purchaser (as
defined in the Indenture)) to whom the Notes could be transferred in accordance with Rule 904 of
Regulation S promulgated under the U.S. Securities Act of 1933, as amended.

          You, as Trustee, the Issuer, counsel for the Issuer and others are entitled to rely upon this
letter and are irrevocably authorized to produce this letter or a copy hereof to any interested
party in any administrative or legal proceedings or official inquiry with respect to the matters
covered hereby. Terms used in this letter have the meanings set forth in Regulation S.

	 	 	 	 	 
	 	Very truly yours,

[Name of Holder]

 	 
	 	By:  	 	 
	 	 	Authorized Signature 	 
	 	 	 	 
	 

E-1

 

EXHIBIT F

NOTE GUARANTEE

          For value received, each of the undersigned (including any successor Person under the
Indenture) hereby unconditionally guarantees, jointly and severally, to the extent set forth in the
Indenture (as defined below) to the Holder of this Note the payment of principal, premium, if any,
and interest on this Note in the amounts and at the times when due and interest on the overdue
principal, premium, if any, and interest, if any, of this Note when due, if lawful, and, to the
extent permitted by law, the payment or performance of all other obligations of the Issuer under
the Indenture or the Notes, to the Holder of this Note and the Trustee, all in accordance with and
subject to the terms and limitations of this Note, the Indenture, including Article Eleven thereof,
and this Note Guarantee. This Note Guarantee will become effective in accordance with Article
Eleven of the Indenture and its terms shall be evidenced therein. The validity and enforceability
of any Note Guarantee shall not be affected by the fact that it is not affixed to any particular
Note.

          Capitalized terms used but not defined herein shall have the meanings ascribed to them in the
Indenture dated as of February [ ], 2005, among CPI Holdco, Inc., a Delaware corporation (the
“Issuer”), and The Bank of New York Trust Company, N.A., as trustee (the “Trustee”), as amended or
supplemented (the “Indenture”).

          The obligations of the undersigned to the Holders of Notes and to the Trustee pursuant to this
Note Guarantee and the Indenture are expressly set forth in Article Eleven of the Indenture and
reference is hereby made to the Indenture for the precise terms of the Note Guarantee and all of
the other provisions of the Indenture to which this Note Guarantee relates.

          No director, officer, employee, incorporator, stockholder, member or manager of any Guarantor,
as such, shall have any liability for any obligations of such Guarantors under such Guarantors’
Note Guarantee or the Indenture or for any claim based on, in respect of, or by reason of, such
obligation or its creation.

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

          This Note Guarantee is subject to release upon the terms set forth in the Indenture.

F-1

 

          IN WITNESS WHEREOF, each Guarantor has caused its Note Guarantee to be duly executed.

Date:

	 	 	 	 	 
	 	 	[          ]
	 

	

	 	By:
	 	 
	

	 	 
	 	

	

	 	 	 	Name:
	

	 	 	 	Title:

F-2exv10w3

 

Exhibit 10.3

	 	 
	 

REGISTRATION RIGHTS AGREEMENT

Dated as of February 22, 2005

By and Among

CPI HOLDCO, INC.

and

UBS SECURITIES LLC

and

WACHOVIA CAPITAL MARKETS,
LLC

BEAR, STEARNS & CO. INC.

as Initial Purchasers

Floating Rate Senior Notes due 2015

	 	 
	 

 

 

TABLE OF CONTENTS

	 	 	 	 	 	 	 
	 	 	 	 	Page	 
	Section 1.  
	 	Definitions	 	 	1	 
	Section 2.  
	 	Exchange Offer	 	 	4	 
	Section 3.  
	 	Shelf Registration	 	 	7	 
	Section 4.  
	 	Additional Interest	 	 	8	 
	Section 5.  
	 	Registration Procedures	 	 	9	 
	Section 6.  
	 	Registration Expenses	 	 	17	 
	Section 7.  
	 	Indemnification	 	 	18	 
	Section 8.  
	 	[Intentionally Omitted]	 	 	21	 
	Section 9.  
	 	Underwritten Registrations	 	 	21	 
	Section 10.
	 	Miscellaneous	 	 	21	 
	(a)
	 	No Inconsistent Agreements	 	 	21	 
	(b)
	 	Adjustments Affecting Registrable Notes	 	 	21	 
	(c)
	 	Amendments and Waivers	 	 	21	 
	(d)
	 	Notices	 	 	22	 
	(e)
	 	Guarantors	 	 	23	 
	(f)
	 	Successors and Assigns	 	 	23	 
	(g)
	 	Counterparts	 	 	23	 
	(h)
	 	Headings	 	 	23	 
	(i)
	 	Governing Law	 	 	23	 
	(j)
	 	Severability	 	 	23	 
	(k)
	 	Securities Held by the Company or Its Affiliates	 	 	23	 
	(l)
	 	Third-Party Beneficiaries	 	 	23	 
	(m)
	 	Entire Agreement	 	 	24	 

 

 

REGISTRATION RIGHTS AGREEMENT

          This Registration Rights Agreement (this “Agreement”) is dated as of February 22,
2005, by and among CPI HOLDCO, INC., a Delaware corporation (the “Company”), on the one
hand, and UBS SECURITIES LLC (the “Representative”), WACHOVIA CAPITAL MARKETS, LLC and BEAR,
STEARNS & CO. INC. (together with the Representative, the “Initial Purchasers”), on the
other hand.

          This Agreement is entered into in connection with the Purchase Agreement, dated as of February
16, 2005, by and among the Company and the Initial Purchasers (the “Purchase Agreement”),
relating to the offering of $80,000,000 aggregate principal amount of Floating Rate Senior Notes
due 2015 of the Company (the “Notes”). The execution and delivery of this Agreement is a
condition to the Initial Purchasers’ obligation to purchase the Notes under the Purchase Agreement.

          The parties hereby agree as follows:

     Section 1. Definitions

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

          “action” shall have the meaning set forth in Section 7(c) hereof.

          “Additional Interest” shall have the meaning set forth in Section 4(a) hereof.

          “Additional Notes” shall mean additional notes issued in lieu of cash interest
payments on any outstanding Notes pursuant to the Indenture or issued in lieu of cash payments of
Additional Interest pursuant to Section 4(b) hereof.

          “Additional Interest Payment Date” shall have the meaning set forth in Section 4(b)
hereof.

          “Agreement” shall have the meaning set forth in the first introductory paragraph
hereto.

          “Applicable Period” shall have the meaning set forth in Section 2(b) hereof.

          “Board of Directors” shall have the meaning set forth in Section 5 hereof.

          “Business Day” shall mean a day that is not a Legal Holiday.

          “Commission” shall mean the Securities and Exchange Commission.

          “Company” shall have the meaning set forth in the introductory paragraph hereto and
shall also include the Company’s successors and assigns.

          “day” shall mean a calendar day.

 

 

-2-

          “Delay Period” shall have the meaning set forth in Section 5 hereof.

          “Effectiveness Period” shall have the meaning set forth in Section 3(b) hereof.

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

          “Exchange Notes” shall have the meaning set forth in Section 2(a) hereof. References
in this Agreement to Exchange Notes shall be deemed to include any Additional Notes relating
thereto, to the extent applicable.

          “Exchange Offer” shall have the meaning set forth in Section 2(a) hereof.

          “Exchange Offer Registration Statement” shall have the meaning set forth in Section
2(a) hereof.

          “Holder” shall mean any holder of a Registrable Note or Registrable Notes.

          “Indenture” shall mean the Indenture, dated as of February 22, 2005, by and among the
Company and Trustee, as trustee, pursuant to which the Notes are being issued, as amended or
supplemented from time to time in accordance with the terms thereof.

          “Initial Purchasers” shall have the meaning set forth in the first introductory
paragraph hereof.

          “Inspectors” shall have the meaning set forth in Section 5(m) hereof.

          “Issue Date” shall mean February 22, 2005, the date of original issuance of the Notes.

          “Legal Holiday” shall mean a Saturday, a Sunday or a day on which banking institutions
in New York are authorized or required by law to close.

          “Losses” shall have the meaning set forth in Section 7(a) hereof.

          “NASD” shall mean the National Association of Securities Dealers, Inc.

          “Notes” shall have the meaning set forth in the second introductory paragraph hereto.

          “Participant” shall have the meaning set forth in Section 7(a) hereof.

          “Participating Broker-Dealer” shall have the meaning set forth in Section 2(b) hereof.

          “Person” shall mean an individual, corporation, partnership, joint venture
association, joint stock company, trust, unincorporated limited liability company, government or
any agency or political subdivision thereof or any other entity.

          “Private Exchange” shall have the meaning set forth in Section 2(b) hereof.

 

 

-3-

          “Private Exchange Notes” shall have the meaning set forth in Section 2(b) hereof.

          “Prospectus” shall mean the prospectus included in any Registration Statement
(including, without limitation, any prospectus subject to completion and a prospectus that includes
any information previously omitted from a prospectus filed as part of an effective registration
statement in reliance upon Rule 430A promulgated under the Securities Act), as amended or
supplemented by any prospectus supplement, and all other amendments and supplements to the
Prospectus, including post-effective amendments, and all material incorporated by reference or
deemed to be incorporated by reference in such Prospectus.

          “Purchase Agreement” shall have the meaning set forth in the second introductory
paragraph hereof.

          “Records” shall have the meaning set forth in Section 5(m) hereof.

          “Registrable Notes” shall mean each Note upon its original issuance and at all times
subsequent thereto, each Additional Note and each Exchange Note as to which Section 2(c)(iv) hereof
is applicable upon original issuance and at all times subsequent thereto and each Private Exchange
Note upon original issuance thereof and at all times subsequent thereto, in each case until (i) a
Registration Statement covering such Note, Additional Note, Exchange Note or Private Exchange Note
has been declared effective by the Commission and such Note, Exchange Note or such Private Exchange
Note, as the case may be, has been disposed of in accordance with such effective Registration
Statement, (ii) such Note or Additional Note has been exchanged pursuant to the Exchange Offer for
an Exchange Note or Exchange Notes that may be resold without restriction under federal securities
laws, (iii) such Note, Additional Note, Exchange Note or Private Exchange Note, as the case may be,
ceases to be outstanding for purposes of the Indenture or (iv) such Note, Exchange Note or Private
Exchange Note has been sold in compliance with Rule 144 or is salable pursuant to Rule 144(k). In
addition, “Registrable Notes” shall not include Additional Notes issued after the consummation of
the Exchange Offer that were covered in the Registration Statement with respect to the Exchange
Offer.

          “Registration Default” shall have the meaning set forth in Section 4(a) hereof.

          “Registration Statement” shall mean any appropriate registration statement of the
Company covering any of the Registrable Notes filed with the Commission under the Securities Act,
and all amendments and supplements to any such Registration Statement, including post-effective
amendments, in each case including the Prospectus contained therein, all exhibits thereto and all
material incorporated by reference therein.

          “Representative” shall have the meaning set forth in the introductory paragraph
hereto.

          “Requesting Participating Broker-Dealer” shall have the meaning set forth in Section
2(b) hereof.

 

 

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          “Rule 144” shall mean Rule 144 promulgated under the Securities Act, as such Rule may
be amended from time to time, or any similar rule (other than Rule 144A) or regulation hereafter
adopted by the Commission.

          “Rule 144A” shall mean Rule 144A promulgated under the Securities Act, as such Rule
may be amended from time to time, or any similar rule (other than Rule 144) or regulation hereafter
adopted by the Commission.

          “Rule 415” shall mean Rule 415 promulgated under the Securities Act, as such Rule may
be amended from time to time, or any similar rule or regulation hereafter adopted by the
Commission.

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

          “Shelf Filing Event” shall have the meaning set forth in Section 2(c) hereof.

          “Shelf Registration” shall have the meaning set forth in Section 3(a) hereof.

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

          “Trustee” shall mean the trustee under the Indenture and, if the Exchange Notes and
Private Exchange Notes are not governed by the Indenture, the trustee under the indenture governing
such Exchange Notes and Private Exchange Notes.

          “underwritten registration” or “underwritten offering” shall mean a
registration in which securities of the Company are sold to an underwriter for reoffering to the
public.

     Section 2. Exchange Offer

          (a) Unless the Exchange Offer would violate applicable law or interpretation of the staff of
the Commission, the Company shall (i) file a registration statement (the “Exchange Offer
Registration Statement”) with the Commission on an appropriate registration form with respect
to a registered offer (the “Exchange Offer”) to, subject to the Holders that participate
complying with the immediately following paragraph, exchange any and all of the Registrable Notes
for a like aggregate principal amount of notes (the “Exchange Notes”) that have provisions
that are identical in all material respects to the Notes (except that the Exchange Notes shall not
contain restrictive legends, terms with respect to transfer restrictions or Additional Interest
upon a Registration Default), (ii) use its reasonable efforts to cause the Exchange Offer
Registration Statement to be declared effective under the Securities Act and (iii) use its
reasonable efforts to consummate the Exchange Offer within 210 days after the Issue Date. Upon the
Exchange Offer Registration Statement being declared effective by the Commission, the Company will
offer the Exchange Notes in exchange for surrender of the Notes. The Company shall keep the
Exchange Offer open for not less than 20 business days (or longer if required by applicable law)
after the date notice of the Exchange Offer is mailed to Holders.

 

 

-5-

          Each Holder that participates in the Exchange Offer will be required to represent to the
Company in writing that (i) any Exchange Notes to be received by it will be acquired in the
ordinary course of its business, (ii) it has no arrangement or understanding with any Person to
participate in the distribution (within the meaning of the Securities Act) of the Exchange Notes in
violation of the provisions of the Securities Act, (iii) it is not an affiliate of the Company, as
defined by Rule 405 of the Securities Act, or if it is an affiliate, it will comply with the
registration and prospectus delivery requirements of the Securities Act to the extent applicable,
(iv) if such Holder is not a broker-dealer, it is not engaged in, and does not intend to engage in,
a distribution of Exchange Notes and (v) if such Holder is a broker-dealer that will receive
Exchange Notes for its own account in exchange for Notes that were acquired as a result of
market-making or other trading activities, it will deliver a prospectus in connection with any
resale of such Exchange Notes.

          (b) The Company and the Initial Purchasers acknowledge that the staff of the Commission has
taken the position that any broker-dealer that elects to exchange Notes that were acquired by such
broker-dealer for its own account as a result of market-making or other trading activities for
Exchange Notes in the Exchange Offer (a “Participating Broker-Dealer”) may be deemed to be
an “underwriter” within the meaning of the Securities Act and must deliver a prospectus meeting the
requirements of the Securities Act in connection with any resale of such Exchange Notes (other than
a resale of an unsold allotment resulting from the original offering of the Notes).

          The Company and the Initial Purchasers also acknowledge that the staff of the Commission has
taken the position that if the Prospectus contained in the Exchange Offer Registration Statement
includes a plan of distribution containing a statement to the above effect and the means by which
Participating Broker-Dealers may resell the Exchange Notes, without naming the Participating
Broker-Dealers or specifying the amount of Exchange Notes owned by them, such Prospectus may be
delivered by Participating Broker-Dealers to satisfy their prospectus delivery obligations under
the Securities Act in connection with resales of Exchange Notes for their own accounts, so long as
the Prospectus otherwise meets the requirements of the Securities Act.

          In light of the foregoing, if requested by a Participating Broker-Dealer (a “Requesting
Participating Broker-Dealer”), the Company agrees to use its reasonable efforts to keep the
Exchange Offer Registration Statement continuously effective for a period necessary to comply with
applicable law in connection with such resales but in no event more than 180 days after the date on
which the Exchange Registration Statement is declared effective, or such longer period if extended
pursuant to any Delay Period in accordance with the last paragraph of Section 5 hereof (such
period, the “Applicable Period”), or such earlier date as each Requesting Participating
Broker-Dealer shall have notified the Company in writing that such Requesting Participating
Broker-Dealer has resold all Exchange Notes acquired by it in the Exchange Offer. The Company
shall include a plan of distribution in such Exchange Offer Registration Statement that meets the
requirements set forth in the preceding paragraph.

          If, prior to consummation of the Exchange Offer, any Initial Purchaser holds any Notes
acquired by it that have, or that are reasonably likely to be determined to have, the status of an
unsold allotment in an initial distribution, or if any Holder is not entitled to participate in the
Exchange Offer, the Company upon the request of any Initial Purchaser or any such Holder, as the
case may be, shall simultaneously with the delivery of the Exchange Notes in the Exchange Offer,
issue and deliver

 

 

-6-

to the Initial Purchasers or any such Holder, as the case may be, in exchange (the
“Private Exchange”) for such Notes held by such Initial Purchaser or any such Holder a like
principal amount of notes (the “Private Exchange Notes”) of the Company that are identical
in all material respects to the Exchange Notes except that the Private Exchange Notes may be
subject to restrictions on transfer and bear a legend to such effect. The Private Exchange Notes
shall be issued pursuant to the same indenture as the Exchange Notes and bear the same CUSIP number
as the Exchange Notes (if permitted by the CUSIP Service Bureau).

          Upon consummation of the Exchange Offer in accordance with this Section 2, the Company shall
have no further registration obligations other than the Company’s continuing registration
obligations with respect to (i) Private Exchange Notes, (ii) Exchange Notes held by Participating
Broker-Dealers and (iii) Notes or Exchange Notes as to which clause (c)(iv) of this Section 2
applies.

          In connection with the Exchange Offer, the Company shall:

     (1) mail or cause to be mailed to each Holder entitled to participate in the Exchange
Offer a copy of the Prospectus forming part of the Exchange Offer Registration Statement,
together with an appropriate letter of transmittal and related documents;

     (2) utilize the services of a depositary for the Exchange Offer with an address in the
Borough of Manhattan, The City of New York, which may be the Trustee or an affiliate of the
Trustee;

     (3) permit Holders to withdraw tendered Notes at any time prior to the close of
business, New York time, on the last Business Day on which the Exchange Offer shall remain
open; and

     (4) otherwise comply in all material respects with all applicable laws, rules and
regulations.

          As soon as practicable after the close of the Exchange Offer and the Private Exchange, if any,
the Company shall:

     (1) accept for exchange all Notes validly tendered and not validly withdrawn by the
Holders pursuant to the Exchange Offer and the Private Exchange, if any;

     (2) deliver or cause to be delivered to the Trustee for cancellation all Registrable
Notes so accepted for exchange; and

     (3) cause the Trustee to authenticate and deliver promptly to each such Holder of
Notes, Exchange Notes or Private Exchange Notes, as the case may be, equal in principal
amount to the Registrable Notes of such Holder so accepted for exchange.

          The Exchange Offer and the Private Exchange shall not be subject to any conditions, other than
that (i) the Exchange Offer or Private Exchange, as the case may be, does not violate applicable
law or any applicable interpretation of the staff of the Commission, (ii) no action or proceeding

 

 

-7-

shall have been instituted or threatened in any court or by any governmental agency which
might materially impair the ability of the Company to proceed with the Exchange Offer or the
Private Exchange, and no material adverse development shall have occurred in any existing action or
proceeding with respect to the Company and (iii) all governmental approvals shall have been
obtained, which approvals the Company deems necessary for the consummation of the Exchange Offer or
Private Exchange.

          The Exchange Notes and the Private Exchange Notes shall be issued under (i) the Indenture or
(ii) an indenture identical in all material respects to the Indenture (in either case, with such
changes as are necessary to comply with any requirements of the Commission to effect or maintain
the qualification thereof under the TIA) and which, in either case, has been qualified under the
TIA and shall provide that (a) the Exchange Notes shall not be subject to the transfer restrictions
set forth in the Indenture and (b) the Private Exchange Notes shall be subject to the transfer
restrictions set forth in the Indenture. The Indenture or such indenture shall provide that the
Exchange Notes, the Private Exchange Notes and the Notes shall vote and consent together on all
matters as one class and that none of the Exchange Notes, the Private Exchange Notes or the Notes
will have the right to vote or consent as a separate class on any matter.

          (c) In the event that (i) any changes in applicable law or the applicable interpretations of
the staff of the Commission do not permit the Company to effect the Exchange Offer, (ii) for any
other reason the Exchange Offer is not consummated within 210 days of the Issue Date, (iii) any
Holder notifies the Company prior to the 20th day following consummation of the Exchange Offer that
it is prohibited by law or the applicable interpretations of the staff of the Commission from
participating in the Exchange Offer, (iv) in the case of any Holder who participates in the
Exchange Offer, such Holder does not receive Exchange Notes on the date of the exchange that may be
sold without restriction under state and federal securities laws (other than due solely to the
status of such Holder as an affiliate of the Company within the meaning of the Securities Act) or
(v) any Initial Purchaser so requests with respect to Notes or Private Exchange Notes that have, or
that are reasonably likely to be determined to have, the status of unsold allotments in an initial
distribution (each such event referred to in clauses (i) through (v) of this sentence, a “Shelf
Filing Event”), then the Company shall file a Shelf Registration pursuant to Section 3 hereof.

     Section 3. Shelf Registration

          If at any time a Shelf Filing Event shall occur, then:

          (a) Shelf Registration. The Company shall file with the Commission a Registration
Statement for an offering to be made on a continuous basis pursuant to Rule 415 covering all of the
Registrable Notes not exchanged in the Exchange Offer, Private Exchange Notes and Exchange Notes as
to which Section 2(c)(iv) is applicable (the “Shelf Registration”). The Shelf Registration
shall be on an appropriate form permitting registration of such Registrable Notes for resale by
Holders in the manner or manners designated by them (including, without limitation, one or more
underwritten offerings). The Company shall not permit any securities other than the Registrable
Notes to be included in the Shelf Registration.

 

 

-8-

          (b) The Company shall use its reasonable efforts (x) to cause the Shelf Registration to be
declared effective under the Securities Act on or prior to the later of (A) the 210th day after the
Issue Date and (B) the 150th day after the occurrence of the applicable Shelf Filing Event and (y)
to keep the Shelf Registration continuously effective under the Securities Act for the time period
referred to in Rule 144(k) under the Securities Act, subject to extension pursuant to the
penultimate paragraph of Section 5 hereof (the “Effectiveness Period”), or such shorter
period ending when all Registrable Notes covered by the Shelf Registration have been sold in the
manner set forth and as contemplated in the Shelf Registration; provided, however,
that (i) the Effectiveness Period in respect of the Shelf Registration shall be extended to the
extent required to permit dealers to comply with the applicable prospectus delivery requirements of
Rule 174 under the Securities Act and as otherwise provided herein and (ii) the Company may suspend
the effectiveness of the Shelf Registration by written notice to the Holders solely (A) as a result
of the filing of a post-effective amendment to the Shelf Registration to incorporate annual audited
financial information with respect to the Company where such post-effective amendment is not yet
effective and needs to be declared effective to permit Holders to use the related Prospectus or (B)
to the extent and for so long as permitted by the penultimate paragraph of Section 5.

          (c) Supplements and Amendments. The Company agrees to supplement or make amendments
to the Shelf Registration as and when required by the rules, regulations or instructions applicable
to the registration form used for such Shelf Registration or by the Securities Act or rules and
regulations thereunder for shelf registration, or if reasonably requested by the Holders of a
majority in aggregate principal amount of the Registrable Notes covered by such Registration
Statement or by any underwriter of such Registrable Notes.

     Section 4. Additional Interest

          (a) The Company and the Initial Purchasers agree that the Holders will suffer damages if the
Company fails to fulfill its obligations under Section 2 or Section 3 hereof and that it would not
be feasible to ascertain the extent of such damages with precision. Accordingly, the Company
agrees that if:

     (i) the Exchange Offer is not consummated on or prior to the 210th day following the
Issue Date, or, if that day is not a Business Day, the next day that is a Business Day; or

     (ii) the Shelf Registration is required to be filed but is not declared effective
within the time period specified in Section 3(b)(x), or is declared effective by such date
but thereafter ceases to be effective or usable (unless the Shelf Registration ceases to be
effective or usable as specifically permitted by the penultimate paragraph of Section 5
hereof),

(each such event referred to in clauses (i) and (ii) a “Registration Default”), additional
interest (“Additional Interest”) will accrue on the Registrable Notes required to be
registered on a Shelf Registration Statement. The rate of Additional Interest will be 0.25% per
annum for the first 90-day period immediately following the occurrence of a Registration Default,
increasing by an additional 0.25% per annum with respect to each subsequent 90-day period up to a
maximum amount of Additional Interest of 1.00% per annum, from and including the date on which any
such Registration Default shall occur to, but excluding, the earlier of (1) the date on which all
Registration Defaults have been cured or (2) the

 

 

-9-

date on which such Registrable Note ceases to be a Registrable Note or otherwise become freely
transferable by Holders thereof (including, without limitation, pursuant to an effective Shelf
Registration Statement), other than affiliates of the Company, without further registration under
the Securities Act. If, after the cure of all Registration Defaults then in effect, there is a
subsequent Registration Default, the rate of Additional Interest for such subsequent Registration
Default shall initially be 0.25% regardless of the rate in effect with respect to any prior
Registration Default at the time of cure of such Registration Default and shall increase in the
manner and be subject to the maximum Additional Interest rate contained in the preceding sentence.

          Notwithstanding the foregoing, (1) the amount of Additional Interest payable shall not
increase because more than one Registration Default has occurred and is pending and (2) a Holder of
Registrable Notes that is not entitled to the benefits of the Shelf Registration (e.g.,
such Holder has not elected to include information as required by this Agreement) shall not be
entitled to Additional Interest with respect to a Registration Default that pertains to the Shelf
Registration.

          (b) So long as Notes remain outstanding, the Company shall notify the Trustee within five
Business Days after each and every date on which an event occurs in respect of which Additional
Interest is required to be paid. Any amounts of Additional Interest due pursuant to clauses (a)(i)
or (a)(ii) of this Section 4 will be payable in, at the election of the Issuer (made prior to the
relevant record date in the case of cash interest payments), either (x) in cash or (y) for any
interest payment date on or after August 1, 2006 and on or prior to February 1, 2010, through the
issuance of Additional Notes in principal amount equal to such Additional Interest amount, in
either case, semi-annually on each February 1 and August 1 (each a “Additional Interest Payment
Date”), commencing with the first such date occurring after any such Additional Interest
commences to accrue, to Holders to whom regular interest is payable on such Additional Interest
Payment Date with respect to Notes that are Registrable Notes. The amount of Additional Interest
for each Registrable Note will be determined by multiplying the applicable rate of Additional
Interest by the aggregate principal amount of such Registrable Note outstanding on the Additional
Interest Payment Date following such Registration Default in the case of the first such payment of
Additional Interest with respect to a Registration Default (and thereafter at the next succeeding
Additional Interest Payment Date until the cure of such Registration Default), and multiplying the
product of the foregoing by a fraction, the numerator of which is the number of days such
Additional Interest rate was applicable during such period (determined on the basis of a 360 day
year comprised of twelve 30 day months and, in the case of a partial month, the actual number of
days elapsed), and the denominator of which is 360.

     Section 5. Registration Procedures

          In connection with the filing of any Registration Statement pursuant to Section 2 or 3 hereof,
the Company shall effect such registrations to permit the sale of the securities covered thereby in
accordance with the intended method or methods of disposition thereof, and pursuant thereto and in
connection with any Registration Statement filed by the Company hereunder, the Company shall:

     (a) Prepare and file with the Commission the Registration Statement or Registration
Statements prescribed by Section 2 or 3 hereof, and use its reasonable efforts to cause each
such Registration Statement to become effective and remain effective as provided herein;
provided, however, that, if (1) such filing is pursuant to Section 3 hereof,
or (2) a Prospectus

 

 

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contained in the Exchange Offer Registration Statement filed pursuant to Section 2
hereof is required to be delivered under the Securities Act by any Participating
Broker-Dealer who seeks to sell Exchange Notes during the Applicable Period, before filing
any Registration Statement or Prospectus or any amendments or supplements thereto, the
Company shall furnish to and afford the Holders of the Registrable Notes covered by such
Registration Statement or each such Participating Broker-Dealer, as the case may be, their
counsel (if requested by any such person) and the managing underwriters, if any, a
reasonable opportunity to review copies of all such documents (including copies of any
documents to be incorporated by reference therein and all exhibits thereto) proposed to be
filed (in each case at least five Business Days prior to such filing).

     (b) Prepare and file with the Commission such amendments and post-effective amendments
to each Shelf Registration or Exchange Offer Registration Statement, as the case may be, as
may be necessary to keep such Registration Statement continuously effective for the
Effectiveness Period or the Applicable Period, as the case may be; cause the related
Prospectus to be supplemented by any Prospectus supplement required by applicable law, and
as so supplemented to be filed pursuant to Rule 424 (or any similar provisions then in
force) promulgated under the Securities Act; and comply with the applicable provisions of
the Securities Act and the Exchange Act with respect to the disposition of all securities
covered by such Registration Statement as so amended or in such Prospectus as so
supplemented and with respect to the subsequent resale of any securities being sold by a
Participating Broker-Dealer covered by any such Prospectus, in each case, in accordance with
the intended methods of distribution set forth in such Registration Statement or Prospectus,
as so amended or supplemented.

     (c) If (1) a Shelf Registration is filed pursuant to Section 3 hereof, or (2) a
Prospectus contained in the Exchange Offer Registration Statement filed pursuant to Section
2 hereof is required to be delivered under the Securities Act by any Participating
Broker-Dealer who seeks to sell Exchange Notes during the Applicable Period relating thereto
from whom the Company has received written notice that such Broker-Dealer will be a
Participating Broker-Dealer in the applicable Exchange Offer, notify the selling Holders of
Registrable Notes, or each such Participating Broker-Dealer, as the case may be, their
counsel (if such counsel is known to the Company) and the managing underwriters, if any, as
promptly as possible, and, if requested by any such Person, confirm such notice in writing,
(i) when a Prospectus or any Prospectus supplement or post-effective amendment has been
filed, and, with respect to a Registration Statement or any post-effective amendment, when
the same has become effective under the Securities Act (including in such notice a written
statement that any Holder may, upon request, obtain, at the sole expense of the Company, one
conformed copy of such Registration Statement or post-effective amendment including
financial statements and schedules, documents incorporated or deemed to be incorporated by
reference and exhibits), (ii) of the issuance by the Commission of any stop order suspending
the effectiveness of a Registration Statement or of any order preventing or suspending the
use of any preliminary prospectus or the initiation of any proceedings for that purpose,
(iii) if at any time when a Prospectus is required by the Securities Act to be delivered in
connection with sales of the Registrable Notes or resales of Exchange Notes by Participating
Broker-Dealers the representations and warranties of the Company contained in any agreement
(including any underwriting agreement) con

 

 

-11-

templated by Section 5(l) hereof cease to be true and correct in all material respects,
(iv) of the receipt by any of the Company of any notification with respect to the suspension
of the qualification or exemption from qualification of a Registration Statement or any of
the Registrable Notes or the Exchange Notes for offer or sale in any jurisdiction, or the
initiation or threatening of any proceeding for such purpose, (v) of the happening of any
event, the existence of any condition or any information becoming known to the Company that
makes any statement made in such Registration Statement or related Prospectus or any
document incorporated or deemed to be incorporated therein by reference untrue in any
material respect or that requires the making of any changes in or amendments or supplements
to such Registration Statement, Prospectus or documents so that, in the case of the
Registration Statement, it will not contain any untrue statement of a material fact or omit
to state any material fact required to be stated therein or necessary to make the statements
therein not misleading, and that in the case of the Prospectus, it will not contain any
untrue statement of a material fact or omit to state any material fact required to be stated
therein or necessary to make the statements therein, in the light of the circumstances under
which they were made, not misleading, and (vi) of the Company’s determination that a
post-effective amendment to a Registration Statement would be appropriate.

     (d) If (1) a Shelf Registration is filed pursuant to Section 3 hereof, or (2) a
Prospectus contained in the Exchange Offer Registration Statement filed pursuant to Section
2 hereof is required to be delivered under the Securities Act by any Participating
Broker-Dealer who seeks to sell Exchange Notes during the Applicable Period, use its
reasonable efforts other than during a Delay Period pursuant to the penultimate paragraph of
this Section 5, to prevent the issuance of any order suspending the effectiveness of a
Registration Statement or of any order preventing or suspending the use of a Prospectus or
suspending the qualification (or exemption from qualification) of any of the Registrable
Notes or the Exchange Notes, as the case may be, for sale in any jurisdiction, and, if any
such order is issued, to use its reasonable efforts to obtain the withdrawal of any such
order at the earliest practicable moment.

     (e) If (1) a Shelf Registration is filed pursuant to Section 3 hereof, or (2) a
Prospectus contained in the Exchange Offer Registration Statement filed pursuant to Section
2 hereof is required to be delivered under the Securities Act by any Participating
Broker-Dealer who seeks to sell Exchange Notes during the Applicable Period and if
reasonably requested by the managing underwriter or underwriters (if any), the Holders of a
majority in aggregate principal amount of the Registrable Notes covered by such Registration
Statement or any Participating Broker-Dealer, as the case may be, (i) promptly incorporate
in such Registration Statement or Prospectus a prospectus supplement or post-effective
amendment such information as the managing underwriter or underwriters (if any), such
Holders or any Participating Broker-Dealer, as the case may be (based upon advice of
counsel), determine is reasonably required to be included therein and (ii) make all required
filings of such prospectus supplement or such post-effective amendment as soon as
practicable after the Company has received notification of the matters to be incorporated in
such prospectus supplement or post-effective amendment; provided, however,
that the Company shall not be required to take any action hereunder that would, in the
reasonable opinion of counsel to the Company, violate applicable laws.

 

 

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     (f) If (1) a Shelf Registration is filed pursuant to Section 3 hereof, or (2) a
Prospectus contained in the Exchange Offer Registration Statement filed pursuant to Section
2 hereof is required to be delivered under the Securities Act by any Participating
Broker-Dealer who seeks to sell Exchange Notes during the Applicable Period, furnish to each
selling Holder of Registrable Notes or each such Participating Broker-Dealer, as the case
may be, who so requests, their counsel (if requested by any such person) and each managing
underwriter, if any, at the sole expense of the Company, one conformed copy of the
Registration Statement or Registration Statements and each post-effective amendment thereto,
including financial statements and schedules, and, if requested, all documents incorporated
or deemed to be incorporated therein by reference and all exhibits.

     (g) If (1) a Shelf Registration is filed pursuant to Section 3 hereof, or (2) a
Prospectus contained in the Exchange Offer Registration Statement filed pursuant to Section
2 hereof is required to be delivered under the Securities Act by any Participating
Broker-Dealer who seeks to sell Exchange Notes during the Applicable Period, deliver to each
selling Holder of Registrable Notes or each such Participating Broker-Dealer, as the case
may be, their respective counsel (if requested) and the underwriters, if any, at the sole
expense of the Company, as many copies of the Prospectus or Prospectuses (including each
form of preliminary prospectus) and each amendment or supplement thereto and any documents
incorporated by reference therein as such Persons may reasonably request; and, subject to
the last paragraph of this Section 5, the Company hereby consents to the use, in the manner
described in such Prospectus or any amendment or supplement thereto and in accordance with
applicable law, of such Prospectus and each amendment or supplement thereto by each of the
selling Holders of Registrable Notes or each such Participating Broker-Dealer, as the case
may be, and the underwriters or agents, if any, and dealers (if any), in connection with the
offering and sale of the Registrable Notes covered by, or the sale by Participating
Broker-Dealers of the Exchange Notes pursuant to, such Prospectus and any amendment or
supplement thereto.

     (h) Prior to any public offering of Registrable Notes or Exchange Notes or any delivery
of a Prospectus contained in the Exchange Offer Registration Statement by any Participating
Broker-Dealer who seeks to sell Exchange Notes during the Applicable Period, use its
reasonable efforts to register or qualify, and to cooperate with the selling Holders of
Registrable Notes or each such Participating Broker-Dealer, as the case may be, the managing
underwriter or underwriters, if any, and their respective counsel in connection with the
registration or qualification (or exemption from such registration or qualification) of such
Registrable Notes or Exchange Notes, as the case may be, for offer and sale under the
securities or Blue Sky laws of such jurisdictions within the United States as any selling
Holder, Participating Broker-Dealer, or the managing underwriter or underwriters reasonably
request; provided, however, that where Exchange Notes or Registrable Notes
are offered other than through an underwritten offering, the Company agrees to cause the
Company’s counsel to file registrations and qualifications required to be filed pursuant to
this Section 5(h); keep each such registration or qualification (or exemption therefrom)
effective during the period such Registration Statement is required to be kept effective and
do any and all other acts or things reasonably necessary or advisable to enable the
disposition in such jurisdictions of such Exchange Notes or Registrable Notes covered by the
applicable Registration Statement; provided, however, that the Company shall
not be required to (A) qualify generally to do business in any
jurisdic -

 

 

-13-

tion where it is not then so qualified, (B) take any action that would subject it to
general service of process in any such jurisdiction where it is not then so subject or (C)
subject itself to taxation in any such jurisdiction where it is not then so subject.

     (i) If a Shelf Registration is filed pursuant to Section 3 hereof, cooperate with the
selling Holders of Registrable Notes and the managing underwriter or underwriters, if any,
to facilitate the timely preparation and delivery of certificates representing Registrable
Notes to be sold, which certificates shall not bear any restrictive legends and shall be in
a form eligible for deposit with The Depository Trust Company; and enable such Registrable
Notes to be in such denominations and registered in such names as the managing underwriter
or underwriters, if any, or selling Holders may request at least two Business Days prior to
any sale of such Registrable Notes.

     (j) If (1) a Shelf Registration is filed pursuant to Section 3 hereof, or (2) a
Prospectus contained in the Exchange Offer Registration Statement filed pursuant to Section
2 hereof is required to be delivered under the Securities Act by any Participating
Broker-Dealer who seeks to sell Exchange Notes during the Applicable Period, upon the
occurrence of any event contemplated by Section 5(c)(v) or 5(c)(vi) hereof, as promptly as
practicable prepare and (subject to Section 5(a) and the penultimate paragraph of this
Section 5) file with the Commission, at the sole expense of the Company, a supplement or
post-effective amendment to the Registration Statement or a supplement to the related
Prospectus or any document incorporated or deemed to be incorporated therein by reference,
or file any other required document so that, as thereafter delivered to the purchasers of
the Registrable Notes being sold thereunder or to the purchasers of the Exchange Notes to
whom such Prospectus will be delivered by a Participating Broker-Dealer, any such Prospectus
will not contain an untrue statement of a material fact or omit to state a material fact
required to be stated therein or necessary to make the statements therein, in the light of
the circumstances under which they were made, not misleading.

     (k) Prior to the effective date of the first Registration Statement relating to the
Registrable Notes, provide a CUSIP number for the Registrable Notes or Exchange Notes, as
the case may be.

     (l) In connection with any underwritten offering of Registrable Notes pursuant to a
Shelf Registration, enter into an underwriting agreement as is customary in underwritten
offerings of debt securities similar to the Notes and take all such other actions as are
reasonably requested by the managing underwriter or underwriters in order to expedite or
facilitate the registration or the disposition of such Registrable Notes and, (i) to the
extent possible, make such representations and warranties to the underwriter or underwriters
(and to any Holder that has advised the Company that such Holder may have a “due diligence”
defense under Section 11 of the Securities Act), and covenants with, the underwriters with
respect to the business of the Company and its subsidiaries (including any acquired
business, properties or entity, if applicable), and the Registration Statement, Prospectus
and documents, if any, incorporated or deemed to be incorporated by reference therein, in
each case, as are customarily made by the issuers to underwriters in underwritten offerings
of debt securities similar to the Notes, and confirm the same in writing if and when
requested; (ii) use its reasonable efforts to obtain

 

 

-14-

the written opinions of counsel to the Company in form, scope and substance reasonably
satisfactory to the managing underwriter or underwriters, addressed to the underwriters (and
to any Initial Purchaser selling in such offering that has advised the Company that such
Initial Purchaser may have a “due diligence” defense under Section 11 of the Securities Act)
covering the matters customarily covered in opinions requested in underwritten offerings;
(iii) use its reasonable efforts to obtain “cold comfort” letters and updates thereof in
form, scope and substance reasonably satisfactory to the managing underwriter or
underwriters from the independent certified public accountants of the Company (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 and
financial data are, or are required to be, included or incorporated by reference in the
Registration Statement), addressed to each of the underwriters (and to any Initial Purchaser
selling in such offering that has advised the Company that such Initial Purchaser may have a
“due diligence” defense under Section 11 of the Securities Act), such letters to be in
customary form and covering matters of the type customarily covered in “cold comfort”
letters in connection with underwritten offerings; and (iv) if an underwriting agreement is
entered into, the same shall contain indemnification provisions and procedures no less
favorable than those set forth in Section 7 hereof (or such other provisions and procedures
acceptable to the managing underwriter or underwriters or agents) with respect to all
parties to be indemnified pursuant to said Section; provided that the Company shall
not be required to provide indemnification to any underwriter with respect to information
relating to such underwriter furnished in writing to the Company by or on behalf of such
underwriter expressly for inclusion in such Registration Statement.

     (m) If (1) a Shelf Registration is filed pursuant to Section 3 hereof, or (2) a
Prospectus contained in the Exchange Offer Registration Statement filed pursuant to Section
2 hereof is required to be delivered under the Securities Act by any Participating
Broker-Dealer who seeks to sell Exchange Notes during the Applicable Period, make available
for inspection by any selling Holder of such Registrable Notes being sold or each such
Participating Broker-Dealer, as the case may be, any underwriter participating in any such
disposition of Registrable Notes, if any, and any attorney, accountant or other agent
retained by any such selling Holder or each such Participating Broker-Dealer, as the case
may be, or by any underwriter (collectively, the “Inspectors”), at the offices where
normally kept, during reasonable business hours, all pertinent financial and other records,
pertinent corporate documents and instruments of the Company and its subsidiaries
(collectively, the “Records”) as shall be reasonably necessary to enable them to
exercise any applicable due diligence responsibilities, and cause the officers, directors
and employees of the Company and its subsidiaries to supply all information reasonably
requested by any such Inspector in connection with such Registration Statement and
Prospectus. Each Inspector shall agree in writing that it will keep the Records
confidential and that it will not disclose, or use in connection with any market
transactions in violation of any applicable securities laws, any Records that the Company
determines, in good faith, to be confidential and that it notifies the Inspectors in writing
are confidential unless (i) the disclosure of such Records is necessary to avoid or correct
a misstatement or omission in such Registration Statement or Prospectus, (ii) the release of
such Records is ordered pursuant to a subpoena or other order from a court of competent
jurisdiction, (iii) disclosure of such information is necessary or advisable in the opinion
of counsel for an Inspector in connection with any action, claim, suit or proceeding,
directly or indirectly, involving or potentially involving

 

 

-15-

such Inspector and arising out of, based upon, relating to, or involving this Agreement
or the Purchase Agreement, or any transactions contemplated hereby or thereby or arising
hereunder or thereunder, or (iv) the information in such Records has been made generally
available to the public; provided, however, that (i) each Inspector shall
agree to use reasonable efforts to provide notice to the Company of the potential disclosure
of any information by such Inspector pursuant to clause (i), (ii) or (iii) of this sentence
to permit the Company to obtain a protective order (or waive the provisions of this
paragraph (m)) and (ii) each such Inspector shall take such actions as are reasonably
necessary to protect the confidentiality of such information to the extent such action is
otherwise not inconsistent with, an impairment of or in derogation of the rights and
interests of the Holder or any Inspector.

     (n) Provide a Trustee for the Registrable Notes or the Exchange Notes, as the case may
be, and cause the Indenture or the trust indenture provided for in Section 2(a) hereof to be
qualified under the TIA not later than the effective date of the Exchange Offer or the first
Registration Statement relating to the Registrable Notes; and in connection therewith,
cooperate with the Trustee under any such indenture and the Holders of the Registrable Notes
or Exchange Notes, as applicable, to effect such changes to such indenture as may be
required for such indenture to be so qualified in accordance with the terms of the TIA; and
execute, and use its reasonable efforts to cause such Trustee to execute, all documents as
may be required to effect such changes, and all other forms and documents required to be
filed with the Commission to enable such indenture to be so qualified in a timely manner.

     (o) Comply with all applicable rules and regulations of the Commission and make
generally available to the Company’s securityholders earnings statements satisfying the
provisions of Section 11(a) of the Securities Act and Rule 158 thereunder (or any similar
rule promulgated under the Securities Act) no later than 45 days after the end of any
12-month period (or 90 days after the end of any 12-month period if such period is a fiscal
year) (i) commencing at the end of any fiscal quarter in which Registrable Notes or Exchange
Notes are sold to underwriters in a firm commitment or best efforts underwritten offering
and (ii) if not sold to underwriters in such an offering, commencing on the first day of the
first fiscal quarter of the Company after the effective date of a Registration Statement,
which statements shall cover said 12-month periods consistent with the requirements of Rule
158.

     (p) Upon the request of the Trustee, upon consummation of the Exchange Offer or a
Private Exchange, use its reasonable efforts to obtain an opinion of counsel to the Company,
in a form reasonably acceptable to the Trustee, addressed to the Trustee, that the Exchange
Notes or Private Exchange Notes, as the case may be, and the related indenture constitute
legal, valid and binding obligations of the Company, enforceable against the Company in
accordance with its respective terms, subject to customary exceptions and qualifications.

     (q) If the Exchange Offer or a Private Exchange is to be consummated, upon delivery of
the Registrable Notes by Holders to the Company (or to such other Person as directed by the
Company) in exchange for the Exchange Notes or the Private Exchange Notes, as the case may
be, mark, or cause to be marked, on such Registrable Notes that such Registrable Notes are
being cancelled in exchange for the Exchange Notes or the Private Exchange Notes,

 

 

-16-

as the case may be; provided that in no event shall such Registrable Notes be
marked as paid or otherwise satisfied.

     (r) Cooperate with each seller of Registrable Notes covered by any Registration
Statement and each underwriter, if any, participating in the disposition of such Registrable
Notes and their respective counsel in connection with any filings required to be made with
the NASD.

     (s) Use reasonable efforts to take all other steps reasonably necessary to effect the
registration of the Exchange Notes and/or Registrable Notes covered by a Registration
Statement contemplated hereby.

          The Company may require each seller of Registrable Notes or Exchange Notes as to which any
registration is being effected to furnish to the Company such information regarding such seller and
the distribution of such Registrable Notes or Exchange Notes as the Company may, from time to time,
reasonably request. The Company may exclude from such registration the Registrable Notes of any
seller so long as such seller fails to furnish such information within a reasonable time after
receiving such request and in the event of such an exclusion, the Company shall have no further
obligation under this Agreement (including, without limitation, the obligations under Section 4)
with respect to such seller or any subsequent Holder of such Registrable Notes. Each seller as to
which any Shelf Registration is being effected agrees to furnish promptly to the Company all
information required to be disclosed in order to make any information previously furnished to the
Company by such seller not materially misleading.

          If any such Registration Statement refers to any Holder by name or otherwise as the holder of
any securities of the Company, then such Holder shall have the right to require (i) the insertion
therein of language, in form and substance reasonably satisfactory to such Holder, to the effect
that the holding by such Holder of such securities is not to be construed as a recommendation by
such Holder of the investment quality of the securities covered thereby and that such holding does
not imply that such Holder will assist in meeting any future financial requirements of the Company,
or (ii) in the event that such reference to such Holder by name or otherwise is not required by the
Securities Act or any similar federal statute then in force, the deletion of the reference to such
Holder in any amendment or supplement to the applicable Registration Statement filed or prepared
subsequent to the time that such reference ceases to be required.

          Each Holder of Registrable Notes and each Participating Broker-Dealer agrees by acquisition of
such Registrable Notes or Exchange Notes that, upon the Company providing notice to such Holder or
Participating Broker-Dealer, as the case may be, (x) of the happening of any event of the kind
described in Section 5(c)(ii), 5(c)(iii), 5(c)(iv), 5(c)(v) or 5(c)(vi) hereof, or (y) that the
Board of Directors of the Company (the “Board of Directors”) has resolved that the Company
has a bona fide business purpose for doing so, then, upon providing such notice (which shall refer
to this penultimate paragraph of this Section 5), the Company may delay the filing or the
effectiveness of the Exchange Offer Registration Statement or the Shelf Registration (if not then
filed or effective, as applicable) and shall not be required to maintain the effectiveness thereof
or amend or supplement the Exchange Offer Registration Statement or the Shelf Registration, in all
cases, for a period (a “Delay Period”) expiring upon the earlier to occur of (i) in the
case of the immediately preceding clause (x), such Holder’s or

 

 

-17-

Participating Broker-Dealer’s receipt of the copies of the supplemented or amended Prospectus
contemplated by Section 5(j) hereof or until it is advised in writing (the “Advice”) by the
Company that the use of the applicable Prospectus may be resumed, and has received copies of any
amendments or supplements thereto or (ii) in the case of the immediately preceding clause (y), the
date which is the earlier of (A) the date on which such business purpose ceases to interfere with
the Company’s obligations to file or maintain the effectiveness of any such Registration Statement
pursuant to this Agreement or (B) 90 days after the Company notifies the Holders of such
determination by the Board of Directors. There shall not be more than 90 days of Delay Periods
during any 12-month period. The maximum length of the Applicable Period set forth in Section 2(b)
shall be extended by a number of days equal to the number of days during any Delay Period. Any
Delay Period will not alter the obligations of the Company to pay Additional Interest under the
circumstances set forth in Section 4 hereof.

          Each Holder or Participating Broker-Dealer, by its acceptance of any Registrable Note, agrees
that during any Delay Period, each Holder or Participating Broker-Dealer will discontinue
disposition of such Notes or Exchange Notes covered by such Registration Statement or Prospectus or
Exchange Notes to be sold by such Holder or Participating Broker-Dealer, as the case may be.

     Section 6. Registration Expenses

          All fees and expenses incident to the performance of or compliance with this Agreement by the
Company (other than any underwriting discounts or commissions) shall be borne by the Company,
whether or not the Exchange Offer Registration Statement or the Shelf Registration is filed or
becomes effective or the Exchange Offer is consummated, including, without limitation, (i) all
registration and filing fees (including, without limitation, reasonable fees and expenses of
compliance with state securities or Blue Sky laws (including, without limitation, reasonable fees
and disbursements of counsel in connection with Blue Sky qualifications of the Registrable Notes or
Exchange Notes and determination of the eligibility of the Registrable Notes or Exchange Notes for
investment under the laws of such jurisdictions as provided in Section 5(h) hereof, in the case of
a Shelf Registration or in the case of Exchange Notes to be sold by a Participating Broker-Dealer
during the Applicable Period)), (ii) printing expenses, including, without limitation, expenses of
printing certificates for Registrable Notes or Exchange Notes in a form eligible for deposit with
The Depository Trust Company and of printing prospectuses if the printing of prospectuses is
requested by the managing underwriter or underwriters, if any, or by the Holders of a majority in
aggregate principal amount of the Registrable Notes included in any Registration Statement or in
respect of Exchange Notes to be sold by any Participating Broker-Dealer during the Applicable
Period, as the case may be, (iii) messenger, telephone and delivery expenses, (iv) fees and
disbursements of counsel for the Company and the reasonable fees and disbursements of one special
counsel for all of the sellers of Registrable Notes (exclusive of any counsel retained pursuant to
Section 7 hereof) selected by the Holders of a majority in aggregate principal amount of Notes,
Exchange Notes and Private Exchange Notes being registered and reasonably satisfactory to the
Company, (v) fees and disbursements of all independent certified public accountants referred to in
Section 5(l)(iii) hereof (including, without limitation, the expenses of any “cold comfort” letters
required by or incident to such performance), (vi) Securities Act liability insurance, if the
Company desire such insurance, (vii) fees and expenses of all other Persons retained by the
Company, (viii) internal expenses of the Company (including, without limitation, all salaries and
expenses of officers and employees of the Company performing legal or accounting duties), (ix) the
expense of any annual audit, (x) any required fees and expenses incurred in connection with

 

 

-18-

any filing required to be made with the NASD and (xi) the expenses relating to printing, word
processing and distributing all Registration Statements, underwriting agreements, indentures and
any other documents necessary in order to comply with this Agreement. Notwithstanding the
foregoing or anything to the contrary, each Holder shall pay all underwriting discounts and
commissions of any underwriters and transfer taxes, if any, with respect to any Registrable Notes
sold by or on behalf of it.

     Section 7. Indemnification

          (a) The Company agrees to indemnify and hold harmless each Holder of Registrable Notes selling
Notes during the Effectiveness Period and each Participating Broker-Dealer selling Exchange Notes
during the Applicable Period, each Person, if any, who controls any such Person within the meaning
of Section 15 of the Securities Act or Section 20(a) of the Exchange Act, the agents, employees,
officers and directors of each Holder and each such Participating Broker-Dealer and the agents,
partners, members, employees, officers, and directors of any such controlling Person (each, a
“Participant”) from and against any and all losses, liabilities, claims, damages and
expenses whatsoever (including, but not limited to, reasonable attorneys’ fees and any and all
reasonable expenses whatsoever actually incurred in investigating, preparing or defending against
any litigation, commenced or threatened, or any claim whatsoever, and any and all reasonable
amounts paid in settlement of any claim or litigation) (collectively, “Losses”) to which
they or any of them may become subject under the Securities Act, the Exchange Act or otherwise
insofar as such Losses (or actions in respect thereof) arise out of or are based upon any untrue
statement or alleged untrue statement of a material fact contained in any Registration Statement
(or any amendment thereto) or Prospectus (as amended or supplemented if the Company shall have
furnished any amendments or supplements thereto) or any preliminary prospectus, or arising out of
or based upon any omission or alleged omission to state therein a material fact required to be
stated therein or necessary to make the statements therein, in the case of the Prospectus, in the
light of the circumstances under which they were made, not misleading, provided that (i)
the foregoing indemnity shall not be available to any Participant insofar as such Losses arise out
of or are based upon any untrue statement or omission or alleged untrue statement or omission made
in reliance upon and in conformity with information relating to such Participant’s related Holder
furnished to the Company in writing by or on behalf of such Holder expressly for use therein, and
(ii) the foregoing indemnity shall not inure to the benefit of any Participant from whose related
Holder the Person asserting such Losses purchased Registrable Notes if (x) such Holder failed to
send or give a copy of the Prospectus (as amended or supplemented if such amendment or supplement
was furnished to such Holder prior to the written confirmation of such sale) to such Person with or
prior to the written confirmation of such sale and (y) the untrue statement or omission or alleged
untrue statement or omission was completely corrected in the Prospectus (as amended or supplemented
if amended or supplemented as aforesaid) and such Prospectus does not contain any other untrue
statement or omission or alleged untrue statement or omission that was the subject matter of such
Losses. This indemnity agreement will be in addition to any liability that the Company may
otherwise have, including, but not limited to, liability under this Agreement.

          (b) Each Participant agrees, severally and not jointly, to indemnify and hold harmless the
Company, each Person, if any, who controls the Company within the meaning of Section 15 of the
Securities Act or Section 20(a) of the Exchange Act, and each of their respective agents, partners,
members, employees, officers and directors and the agents, partners, members, employees, officers
and directors of any such controlling person from and against any Losses to which they or any

 

 

-19-

of them may become subject under the Securities Act, the Exchange Act or otherwise insofar as
such Losses (or actions in respect thereof) arise out of or are based upon any untrue statement or
alleged untrue statement of a material fact contained in any Registration Statement (or any
amendment thereto) or Prospectus (as amended or supplemented if the Company shall have furnished
any amendments or supplements thereto) or any preliminary prospectus, or arising out of or based
upon any omission or alleged omission to state therein a material fact required to be stated
therein or necessary to make the statements therein, in the case of the Prospectus, in the light of
the circumstances under which they were made, not misleading, in each case to the extent, but only
to the extent, that any such Loss arises out of or is based upon any untrue statement or alleged
untrue statement or omission or alleged omission made in reliance upon and in conformity with
information relating to such Participant furnished in writing to the Company by or on behalf of
such Participant expressly for use therein. This indemnity agreement will be in addition to any
liability that such Participant may otherwise have, including, but not limited to liability under
this Agreement.

          (c) Promptly after receipt by an indemnified party under subsection 7(a) or 7(b) above of
notice of the commencement of any action, suit or proceeding (collectively, an “action”),
such indemnified party shall, if a claim in respect thereof is to be made against the indemnifying
party under such subsection, notify each party against whom indemnification is to be sought in
writing of the commencement of such action (but the failure so to notify an indemnifying party
shall not relieve such indemnifying party from any liability that it may have under this Section 7
except to the extent that it has been prejudiced in any material respect by such failure). In case
any such action is brought against any indemnified party, and it notifies an indemnifying party of
the commencement of such action, the indemnifying party will be entitled to participate in such
action, and to the extent it may elect by written notice delivered to the indemnified party
promptly after receiving the aforesaid notice from such indemnified party, to assume the defense of
such action with counsel reasonably satisfactory to such indemnified party. Notwithstanding the
foregoing, the indemnified party or parties shall have the right to employ its or their own counsel
in any such action, but the reasonable fees and expenses of such counsel shall be at the expense of
such indemnified party or parties unless (i) the employment of such counsel shall have been
authorized in writing by the indemnifying parties in connection with the defense of such action,
(ii) the indemnifying parties shall not have employed counsel to take charge of the defense of such
action within a reasonable time after notice of commencement of the action, or (iii) the named
parties to such action (including any impleaded parties) include such indemnified party and the
indemnifying party or parties (or such indemnifying parties have assumed the defense of such
action), and such indemnified party or parties shall have reasonably concluded, after consultation
with counsel, that there may be defenses available to it or them that are different from or
additional to those available to one or all of the indemnifying parties (in which case the
indemnifying party or parties shall not have the right to direct the defense of such action on
behalf of the indemnified party or parties), in any of which events such reasonable fees and
expenses of counsel shall be borne by the indemnifying parties. In no event shall the indemnifying
party be liable for the reasonable fees and expenses of more than one counsel (together with
appropriate local counsel) at any time for all indemnified parties in connection with any one
action or separate but substantially similar or related actions arising in the same jurisdiction
out of the same general allegations or circumstances. Any such separate firm for the Participants
shall be designated in writing by Participants who sold a majority in interest of Registrable Notes
sold by all such Participants and shall be reasonably acceptable to the Company. An indemnifying
party shall not be liable for any settlement of any claim or action effected without its prior
written consent, which consent may not be unreasonably withheld.

 

 

-20-

No indemnifying party shall, without the 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 (x) includes an unconditional release of such indemnified
party from all liability on claims that are the subject matter of such proceeding and (y) does not
include a statement as to or an admission of fault, culpability or a failure to act by or on behalf
of any indemnified party.

          (d) In order to provide for contribution in circumstances in which the indemnification
provided for in this Section 7 is for any reason held to be unavailable from the indemnifying party
for any Losses referred to therein, or is insufficient to hold harmless a party indemnified under
this Section 7 for any Losses referred to therein, each indemnifying party shall contribute to the
amount paid or payable by such indemnified party as a result of such aggregate Losses (i) in such
proportion as is appropriate to reflect the relative benefits received by each indemnifying party,
on the one hand, and each indemnified party, on the other hand, from the sale of the Notes to the
Initial Purchasers or the resale of the Registrable Notes by such Holder, as applicable, or (ii) if
such allocation 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 each
indemnified party, on the one hand, and each indemnifying party, on the other hand, in connection
with the statements or omissions that resulted in such Losses, as well as any other relevant
equitable considerations. The relative benefits received by the Company, on the one hand, and each
Participant, on the other hand, shall be deemed to be in the same proportion as (x) the total
proceeds from the sale of the Notes to the Initial Purchasers (net of discounts and commissions but
before deducting expenses) received by the Company are to (y) the total net profit received by such
Participant in connection with the sale of the Registrable Notes. The relative fault of the
parties 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 Company or such Participant and the parties’ relative
intent, knowledge, access to information and opportunity to correct or prevent such statement or
omission or alleged statement or omission.

          (e) The parties agree that it would not be just and equitable if contribution pursuant to this
Section 7 were determined by pro rata allocation or by any other method of allocation that does not
take into account the equitable considerations referred to above. Notwithstanding the provisions
of this Section 7, (i) in no case shall any Participant be required to contribute any amount in
excess of the amount by which the net profit received by such Participant in connection with the
sale of the Registrable Notes exceeds the amount of any damages that such Participant has otherwise
been required to pay by reason of any untrue or alleged untrue statement or omission or alleged
omission and (ii) no person guilty of fraudulent misrepresentation (within the meaning of Section
11(f) of the Securities Act) shall be entitled to contribution from any person who was not guilty
of such fraudulent misrepresentation. Any party entitled to contribution will, promptly after
receipt of notice of commencement of any action against such party in respect of which a claim for
contribution may be made against another party or parties under this Section 7, notify in writing
such party or parties from whom contribution may be sought, but the omission to so notify such
party or parties shall not relieve the party or parties from whom contribution may be sought from
any obligation it or they may have under this Section 7 or otherwise, except to the extent that it
has been prejudiced in any material respect by such failure; provided, however,
that no additional notice shall be required with respect to any action for which notice has been
given under this Section 7 for purposes of indemnification. Anything in this

 

 

-21-

section to the contrary notwithstanding, no party shall be liable for contribution with
respect to any action or claim settled without its written consent, provided,
however, that such written consent was not unreasonably withheld.

     Section 8. [Intentionally Omitted]

     Section 9. Underwritten Registrations

          If any of the Registrable Notes covered by any Shelf Registration are to be sold in an
underwritten offering, the investment banker or investment bankers and manager or managers that
will manage the offering will be selected by the Holders of a majority in aggregate principal
amount of such Registrable Notes included in such offering and shall be reasonably acceptable to
the Company.

          No Holder of Registrable Notes may participate in any underwritten registration hereunder if
such Holder does not (a) agree to sell such Holder’s Registrable Notes on the basis provided in any
underwriting arrangements approved by the Persons entitled hereunder to approve such arrangements
and (b) complete and execute all questionnaires, powers of attorney, indemnities, underwriting
agreements and other documents required under the terms of such underwriting arrangements.

     Section 10. Miscellaneous

          (a) No Inconsistent Agreements. The Company has not, as of the date hereof, and shall
not, after the date of this Agreement, enter into any agreement with respect to any of its
securities that is inconsistent with the rights granted to the Holders of Registrable Notes in this
Agreement or otherwise conflicts with the provisions hereof. The rights granted to the Holders
hereunder do not conflict with and are not inconsistent with, in any material respect, the rights
granted to the holders of any of the Company’s other issued and outstanding securities under any
such agreements. The Company has not entered and will not enter into any agreement with respect to
any of its securities which will grant to any Person piggy-back registration rights with respect to
any Registration Statement.

          (b) Adjustments Affecting Registrable Notes. The Company shall not, directly or
indirectly, take any action with respect to the Registrable Notes as a class that would adversely
affect the ability of the Holders of Registrable Notes to include such Registrable Notes in a
registration undertaken pursuant to this Agreement.

          (c) Amendments and Waivers. The provisions of this Agreement may not be amended,
modified or supplemented, and waivers or consents to departures from the provisions hereof may not
be given except pursuant to a written agreement duly signed and delivered by (I) the Company and
(II)(A) the Holders of not less than a majority in aggregate principal amount of the then
outstanding Registrable Notes and (B) in circumstances that would adversely affect the
Participating Broker-Dealers, the Participating Broker-Dealers holding not less than a majority in
aggregate principal amount of the Exchange Notes held by
all Participating Broker-Dealers; provided, however, that Section 7 and this
Section 10(c) may not be amended, modified or supplemented except pursuant to a written agreement
duly signed and delivered by the Company and each Holder and each Participating Broker-Dealer
(including any Person who was a Holder or Participating Broker-Dealer of Registrable Notes or
Exchange Notes, as the case may be, disposed of pursuant to any Registration Statement)

 

 

-22-

affected by
any such amendment, modification, waiver or supplement. Notwithstanding the foregoing, a waiver or
consent to depart from the provisions hereof with respect to a matter that relates exclusively to
the rights of Holders of Registrable Notes whose securities are being sold pursuant to a
Registration Statement and that does not directly or indirectly affect, impair, limit or compromise
the rights of other Holders of Registrable Notes may be given by Holders of at least a majority in
aggregate principal amount of the Registrable Notes being sold pursuant to such Registration
Statement.

          (d) Notices. All notices and other communications (including, without limitation, any
notices or other communications to the Trustee) provided for or permitted hereunder shall be made
in writing by hand-delivery, registered first-class mail, next-day air courier or telecopier:

     (i) if to a Holder of the Registrable Notes or any Participating Broker-Dealer, at the
most current address of such Holder or Participating Broker-Dealer, as the case may be, set
forth on the records of the registrar under the Indenture.

	 	 	 	 	 	 	 
	 	 	(ii)	 	if to the Company, to it
	 
	 	 	 	 	 	 
	 	 	 	 	811 Hansen Way, Palo Alto, CA 94303
	 	 	 	 	Fax: 650-846-3276
	 	 	 	 	Attention: Chief Financial Officer
	 
	 	 	 	 	 	 
	 	 	 	 	with a copy to:
	 
	 	 	 	 	 	 
	

	 	 	 	 	 	The Cypress Group L.L.C.,
	

	 	 	 	 	 	65 East 55th Street, 28th Floor
	

	 	 	 	 	 	New York, NY 10022
	

	 	 	 	 	 	Fax: 212-705-0196
	

	 	 	 	 	 	Attention: Lynn Horn
	 
	 	 	 	 	 	 
	 	 	(iii)	 	if to the Initial Purchasers, at the address as follows:
	 
	 	 	 	 	 	 
	

	 	 	 	 	 	UBS Securities LLC
	

	 	 	 	 	 	677 Washington Blvd.
	

	 	 	 	 	 	Stamford, Connecticut 06901
	

	 	 	 	 	 	Fax number: (203) 719-0680
	

	 	 	 	 	 	Attention: High Yield Syndicate Department

          All such notices and communications shall be deemed to have been duly given: when delivered
by hand, if personally delivered; five Business Days after being deposited in the mail, post
age prepaid, if mailed; when receipt is acknowledged by the recipient’s telecopier machine, if
telecopied; and on the next Business Day, if timely delivered to an air courier guaranteeing
overnight delivery.

          Copies of all such notices, demands or other communications shall be concurrently delivered by
the Person giving the same to the Trustee at the address and in the manner specified in such
Indenture.

 

 

-23-

          (e) Guarantors. So long as the Exchange Offer has not been consummated or if the
Shelf Registration Statement is required to be filed (so long as it is effective), the Company
shall cause each Person that becomes a guarantor of the Notes under the Indenture to execute and
deliver a counterpart to this Agreement which subjects such Person to the provisions of this
Agreement as a guarantor. Each of such guarantors agrees to join the Company in all of its
undertakings hereunder to effect the Exchange Offer for the Exchange Notes and the filing of any
Shelf Registration as required hereunder.

          (f) Successors and Assigns. This Agreement shall inure to the benefit of and be
binding upon the successors and assigns of each of the parties hereto, the Holders and the
Participating Broker-Dealers; provided, that this Agreement shall not inure to the benefit of or be
binding upon a successor or assign of a Holder unless and to the extent such successor or assign
holds Registrable Notes; provided, further, 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 Indenture.

          (g) Counterparts. This Agreement may be executed in any number of counterparts and by
the parties hereto in separate counterparts, each of which when so executed shall be deemed to be
an original and all of which taken together shall constitute one and the same agreement.

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

          (i) Governing Law. THIS AGREEMENT SHALL BE GOVERNED BY AND CONSTRUED IN ACCORDANCE
WITH THE LAWS OF THE STATE OF NEW YORK.

          (j) Severability. To the extent permitted by applicable law, if any term, provision,
covenant or restriction of this Agreement is held by a court of competent jurisdiction to be
invalid, illegal, void or unenforceable, the remainder of the terms, provisions, covenants and
restrictions set forth herein shall
remain in full force and effect and shall in no way be affected, impaired or invalidated, and
the parties hereto shall use their best efforts to find and employ an alternative means to achieve
the same or substantially the same result as that contemplated by such term, provision, covenant or
restriction. It is hereby stipulated and declared to be the intention of the parties that they
would have executed the remaining terms, provisions, covenants and restrictions without including
any of such that may be hereafter declared invalid, illegal, void or unenforceable.

          (k) Securities Held by the Company or Its Affiliates. Whenever the consent or
approval of Holders of a specified percentage of Registrable Notes is required hereunder,
Registrable Notes held by the Company or any of its affiliates (as such term is defined in Rule 405
under the Securities Act) shall not be counted in determining whether such consent or approval was
given by the Holders of such required percentage.

          (l) Third-Party Beneficiaries. Holders and beneficial owners of Registrable Notes and
Participating Broker-Dealers are intended third-party beneficiaries of this Agreement, and

 

 

-24-

this
Agreement may be enforced by such Persons. No other Person is intended to be, or shall be
construed as, a third-party beneficiary of this Agreement.

          (m) Entire Agreement. This Agreement is intended by the parties as a final and
exclusive statement of the agreement and understanding of the parties hereto in respect of the
subject matter contained herein and any and all prior oral or written agreements, representations,
or warranties, contracts, understandings, correspondence, conversations and memoranda between the
Initial Purchasers on the one hand and the Company on the other, or between or among any agents,
representatives, parents, subsidiaries, affiliates, predecessors in interest or successors in
interest with respect to the subject matter hereof are merged herein and replaced hereby.

 

 

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

	 	 	 	 	 
	 	 	CPI HOLDCO, INC.
	

	 	By:
	 	 
	

	 	 	 	Name:
	

	 	 	 	Title:

 

 

	 	 	 	 	 	 
	Confirmed and accepted
as of the date first above written:

	 	 	UBS SECURITIES LLC	 
	 	 	WACHOVIA CAPITAL MARKETS, LLC
	 
	 	 	BEAR, STEARNS & CO. INC.
	 
	 
	 	 	 	 	 

	 	 	 	 
	By:

	  	UBS SECURITIES LLC	 
	

	 	as Representative of the several Initial Purchasers	 
	 
	 	 	 
	By:

	 	 	 
	

	 	Name:	 
	

	 	Title:	 
	 
	 	 	 
	By:

	 	 	 
	

	 	Name:	 
	

	 	Title:

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00078-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00078-of-00352.parquet"}]]