Document:

Execution
      Copy

     

      
        

      

    

    

    CHINA
      SECURITY & SURVEILLANCE TECHNOLOGY, INC.

     

    as
      the
      Company

     

    CHINA
      SAFETECH HOLDINGS LIMITED

    CHINA
      SECURITY & SURVEILLANCE TECHNOLOGY (HK) LTD.

     

    as
      the
      Guarantors

     

    and

     

    THE
      BANK
      OF NEW YORK,

    a
      New
      York banking corporation

    as
      the
      Trustee

     

    __________________________

     

    INDENTURE

     

    Dated
      February 16, 2007

     

    __________________________

     

    1.0%
      Guaranteed Senior Unsecured Convertible Notes due 2012

     

    

     

      
        

      

    

    

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    TABLE
      OF CONTENTS

     

    
      	 	
              Page

            
	
               

              ARTICLE
                1

                 

                DEFINITIONS

                 

              

            
	
              Section
                1.01.  
                Definitions

            	
              1

            
	
              Section
                1.02.  
                Other Definitions

            	
              30

            
	
              Section
                1.03.  
                Rules of Construction.

            	
              31

            
	
               

              ARTICLE
                2

               

              ISSUE,
                DESCRIPTION, EXECUTION, REGISTRATION AND EXCHANGE OF NOTES

               

            
	
              Section
                2.01.  
                Designation Amount and Issue of Notes

            	
              32

            
	
              Section
                2.02.  
                Form of Notes

            	
              32

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

            	
              34

            
	
              Section
                2.04.  
                Execution of Notes

            	
              34

            
	
              Section
                2.05.  
                Exchange and Registration of Transfer of Notes; Restrictions on
                Transfer

            	
              35

            
	
              Section
                2.06.  
                Mutilated, Destroyed, Lost or Stolen Notes

            	
              37

            
	
              Section
                2.07.  
                Temporary Notes

            	
              38

            
	
              Section
                2.08.  
                Cancellation of Notes

            	
              38

            
	
              Section
                2.09.  
                Defaulted Interest

            	
              39

            
	
              Section
                2.10.  
                ISIN Numbers

            	
              39

            
	
               

              ARTICLE
                3

              REDEMPTION
                AND REPURCHASE OF NOTES

               

            
	
              Section
                3.01.  
                Redemption at Maturity

            	
              39

            
	
              Section
                3.02.  
                Offer to Purchase

            	
              39

            
	
               

              ARTICLE
                4

               

              PARTICULAR
                COVENANTS OF THE COMPANY

               

            
	
              Section
                4.01.  
                Payment of Principal and Interest

            	
              42

            
	
              Section
                4.02.  
                Maintenance of Office or Agency

            	
              42

            
	
              Section
                4.03.  
                Provisions as to Paying Agent

            	
              43

            
	
              Section
                4.04.  
                Existence

            	
              44

            
	
              Section
                4.05.  
                Maintenance of Properties

            	
              44

            
	
              Section
                4.06.  
                Payment of Taxes and Other Claims

            	
              44

            
	
              Section
                4.07.  
                Stay, Extension and Usury Laws

            	
              45

            
	
              Section
                4.08.  
                Payments for Consent

            	
              45

            

    

     

    
      
        
        

      

      
        i

        
          

        

      

      
        
        

      

    

     

    
      	
              Section
                4.09.  
                Incurrence of Additional Debt; Financial Covenants

            	
              45

            
	
              Section
                4.10.  
                Restricted Payments

            	
              46

            
	
              Section
                4.11.  
                Liens

            	
              47

            
	
              Section
                4.12.  
                Asset Sales

            	
              48

            
	
              Section
                4.13.  
                Restrictions on Distributions from Subsidiaries

            	
              49

            
	
              Section
                4.14.  
                Affiliate Transactions

            	
              50

            
	
              Section
                4.15.  
                Issuance or Sale of Capital Stock of Subsidiaries

            	
              51

            
	
              Section
                4.16.  
                Maintenance of Consolidated Tangible Net Worth

            	
              52

            
	
              Section
                4.17.  
                Repurchase at the Option of Holders Following a Change of
                Control

            	
              52

            
	
              Section
                4.18.  
                Future Guarantors

            	
              52

            
	
              Section
                4.19.  
                Business Activities

            	
              53

            
	
              Section
                4.20.  
                Sale and Leaseback Transactions

            	
              53

            
	
              Section
                4.21.  
                Use of Proceeds

            	
              53

            
	
              Section
                4.22.  
                Maintenance of Insurance

            	
              53

            
	
              Section
                4.23.  
                Repurchase Upon Termination of Trading

            	
              54

            
	
              Section
                4.24.  
                Government Approvals and Licenses; Compliance with Law

            	
              54

            
	
              Section
                4.25.  
                [RESERVED]

            	
              54

            
	
              Section
                4.26.  
                Notes to Rank Senior

            	
              54

            
	
              Section
                4.27.  
                Compliance Certificate

            	
              54

            
	
              Section
                4.28.  
                Calculation of Original Issue Discount

            	
              55

            
	
               

              ARTICLE
                5

               

              SUCCESSORS

               

            
	
              Section
                5.01.  
                Merger, Consolidation and Sale of Assets

            	
              55

            
	
              Section
                5.02.  
                Successor Corporation Substituted

            	
              57

            
	
               

              ARTICLE
                6

               

              REMEDIES
                OF THE TRUSTEE AND NOTEHOLDERS ON AN EVENT OF DEFAULT

               

            
	
              Section
                6.01.  
                Events of Default

            	
              57

            
	
              Section
                6.02.  
                Payments of Notes on Default; Suit Therefor

            	
              61

            
	
              Section
                6.03.  
                Application of Monies Collected by Trustee

            	
              62

            
	
              Section
                6.04.  
                Proceedings by Noteholder

            	
              63

            
	
              Section
                6.05.  
                Proceedings by Trustee

            	
              64

            
	
              Section
                6.06.  
                Remedies Cumulative and Continuing

            	
              64

            
	
              Section
                6.07.  
                Direction of Proceedings and Waiver of Defaults by Majority of
                Noteholders

            	
              64

            
	
              Section
                6.08.  
                Notice of Default

            	
              65

            
	
              Section
                6.09.  
                Undertaking to Pay Costs

            	
              65

            

    

     

    
      
        
        

      

      
        ii

        
          

        

      

      
        
        

      

    

     

    
      	
               

              ARTICLE
                7

               

              THE
                TRUSTEE

               

            
	
              Section
                7.01.  
                Duties and Responsibilities of Trustee

            	
              65

            
	
              Section
                7.02.  
                Rights of Trustee

            	
              67

            
	
              Section
                7.03.  
                No
                Responsibility for Recitals, Etc

            	
              69

            
	
              Section
                7.04.  
                Trustee, Paying Agents, Conversion Agents, Common Depositary or Registrar
                May Own Notes

            	
              69

            
	
              Section
                7.05.  
                Monies to Be Held in Trust

            	
              69

            
	
              Section
                7.06.  
                Compensation and Expenses of Trustee

            	
              70

            
	
              Section
                7.07.  
                Eligibility of Trustee

            	
              70

            
	
              Section
                7.08.  
                Resignation or Removal of Trustee

            	
              71

            
	
              Section
                7.09.  
                Acceptance by Successor Trustee

            	
              72

            
	
              Section
                7.10.  
                Succession by Merger

            	
              72

            
	
              Section
                7.11.  
                Trustee’s Application for Instructions from the Company

            	
              73

            
	
              Section
                7.12.  
                Reports by Trustee

            	
              73

            
	
              Section
                7.13.  
                Certain Provisions

            	
              74

            
	
               

              ARTICLE
                8

               

              SUPPLEMENTAL
                INDENTURES

               

            
	
              Section
                8.01.  
                Supplemental Indentures Without Consent of Noteholders

            	
              74

            
	
              Section
                8.02.  
                Supplemental Indenture with Consent of Noteholders

            	
              75

            
	
              Section
                8.03.  
                Effect of Supplemental Indenture

            	
              77

            
	
              Section
                8.04.  
                Notation on Notes

            	
              77

            
	
              Section
                8.05.  
                Evidence of Compliance of Supplemental Indenture to Be Furnished
                to
                Trustee

            	
              77

            
	
               

              ARTICLE
                9

               

              GUARANTEES

               

            
	
              Section
                9.01.  
                Guarantee

            	
              77

            
	
              Section
                9.02.  
                Limitation on Guarantor Liability

            	
              79

            
	
              Section
                9.03.  
                Execution and Delivery of Guarantee

            	
              80

            
	
              Section
                9.04.  
                Guarantors May Consolidate, etc., on Certain Terms

            	
              80

            
	
              Section
                9.05.  
                Releases Following Merger, Consolidation or Sale of Assets,
                Etc

            	
              81

            
	
               

              ARTICLE
                10

               

              [RESERVED]

               

            
	
               

              ARTICLE
                11 
                 

                SATISFACTION
                  AND DISCHARGE OF INDENTURE

              

               

            
	
               

            	 
	
              Section
                11.01.  
                Discharge of Indenture

            	
              82

            
	
              Section
                11.02.  
                Deposited Monies to Be Held in Trust by Trustee

            	
              82

            
	
              Section
                11.03.  
                Paying Agent to Repay Monies Held

            	
              83

            
	
              Section
                11.04.  
                Return of Unclaimed Monies

            	
              83

            
	
              Section
                11.05.  
                Reinstatement

            	
              83

            

    

     

    
      
        
        

      

      
        iii

        
          

        

      

      
        
        

      

    

     

    
      	
               

              ARTICLE
                12

               

              THE
                NOTEHOLDERS

               

            
	
              Section
                12.01.  
                Action by Noteholders

            	
              83

            
	
              Section
                12.02.  
                Proof of Execution by Noteholders

            	
              84

            
	
              Section
                12.03.  
                Who Are Deemed Absolute Owners

            	
              84

            
	
              Section
                12.04.  
                Company-owned Notes Disregarded

            	
              84

            
	
              Section
                12.05.  
                Revocation of Consents; Future Holders Bound

            	
              85

            
	
               

              ARTICLE
                13

               

              MEETINGS
                OF NOTEHOLDERS

               

            
	
              Section
                13.01.  
                Purpose of Meetings

            	
              85

            
	
              Section
                13.02.  
                Call of Meetings by Company or Noteholders

            	
              85

            
	
              Section
                13.03.  
                Qualifications for Voting

            	
              86

            
	
              Section
                13.04.  
                Regulations

            	
              86

            
	
              Section
                13.05.  
                Voting

            	
              87

            
	
              Section
                13.06.  
                No
                Delay of Rights by Meeting

            	
              87

            
	
               

              ARTICLE
                14

               

              CONVERSION
                OF NOTES

               

            
	
              Section
                14.01.  
                Right to Convert

            	
              87

            
	
              Section
                14.02.  
                Exercise of Conversion Right; Issuance of Common Stock on Conversion;
                No
                Adjustment for Interest or Dividends

            	
              88

            
	
              Section
                14.03.  
                Cash Payments in Lieu of Fractional Shares

            	
              89

            
	
              Section
                14.04.  
                Conversion Rate

            	
              90

            
	
              Section
                14.05.  
                Adjustment of Conversion Rate

            	
              90

            
	
              Section
                14.06.  
                    Effect of Reclassification, Consolidation, Merger or Sale

            	
              98

            
	
              Section
                14.07.  
                Mandatory Conversion

            	
              99

            
	
              Section
                14.08.  
                Taxes on Shares Issued

            	
              100

            
	
              Section
                14.09.  
                Reservation of Shares; Shares to Be Fully Paid; Compliance with
                Governmental Requirements; Listing of Common Stock

            	
              100

            
	
              Section
                14.10.  
                Responsibility of Trustee

            	
              101

            
	
              Section
                14.11.  
                Notice to Holders Prior to Certain Actions

            	
              102

            
	
              Section
                14.12.  
                Shareholder Rights Plans

            	
              102

            

    

     

    
      
        
        

      

      
        iv

        
          

        

      

      
        
        

      

    

    
      	
               

              ARTICLE
                15

               

              MISCELLANEOUS
                PROVISIONS

               

            
	
              Section
                15.01.  
                Provisions Binding on Company’s Successors

            	
              103

            
	
              Section
                15.02.  
                Official Acts by Successor Corporation

            	
              103

            
	
              Section
                15.03.  
                Addresses for Notices, Etc.

            	
              103

            
	
              Section
                15.04.  
                Governing Law

            	
              104

            
	
              Section
                15.05.  
                Evidence of Compliance with Conditions Precedent; Certificates to
                Trustee

            	
              104

            
	
              Section
                15.06.  
                Legal Holidays

            	
              105

            
	
              Section
                15.07.  
                Company Responsible for Making Calculations

            	
              105

            
	
              Section
                15.08.  
                Benefits of Indenture

            	
              105

            
	
              Section
                15.09.  
                Table of Contents, Headings, Etc.

            	
              105

            
	
              Section
                15.10.  
                Authenticating Agent

            	
              105

            
	
              Section
                15.11.  
                Indenture and Notes Solely Corporate Obligations

            	
              106

            
	
              Section
                15.12.  
                Execution in Counterparts

            	
              106

            
	
              Section
                15.13.  
                Severability

            	
              106

            

    

    

    
      	
              Exhibit
                A -

            	
              FORM
                OF NOTE

            
	
              Exhibit
                B -

            	
              FORM
                OF NOTATION OF GUARANTEE

            
	
              Exhibit
                C -

            	
              FORM
                OF CERTIFICATE OF TRANSFER

            
	
              Exhibit
                D -

            	
              FORM
                OF RESTRICTIVE LEGEND FOR COMMON STOCK ISSUED UPON
                CONVERSION

            

    

    

    
      
        
        

      

      
        v

        
          

        

      

      
        
        

      

    

    INDENTURE

     

    INDENTURE
      dated February 16, 2007, between CHINA SECURITY & SURVEILLANCE TECHNOLOGY,
      INC, a Delaware corporation (hereinafter called the “Company”),
      the
      Guarantors listed on the signature pages hereto, and THE BANK OF NEW YORK,
      a New
      York banking corporation, as trustee hereunder (hereinafter called the
“Trustee”).

     

    WITNESSETH:

     

    WHEREAS,
      for its lawful corporate purposes, the Company has duly authorized the issue
      of
      its 1.0% Guaranteed Senior Unsecured Convertible Notes due 2012 (hereinafter
      called the “Notes”),
      in an
      aggregate principal amount not to exceed $60,000,000 and, to provide the terms
      and conditions upon which the Notes are to be authenticated, issued and
      delivered, the Company has duly authorized the execution and delivery of this
      Indenture; and

     

    WHEREAS,
      for its lawful corporate purposes, each Guarantor has duly authorized the issue
      of its Guarantee of the Notes and, to provide the terms and conditions upon
      which the Guarantee is to be issued and delivered, each Guarantor has duly
      authorized the execution and delivery of this Indenture; and

     

    WHEREAS,
      the Notes, the certificate of authentication to be borne by the Notes, a form
      of
      notation of Guarantee, a form of Assignment, a form of Purchase Notice and
      a
      form of Conversion Notice to be borne by the Notes are to be substantially
      in
      the forms hereinafter provided for; and

     

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

     

    NOW,
      THEREFORE, THIS INDENTURE WITNESSETH:

     

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

     

    ARTICLE
      1

     

    DEFINITIONS

     

    Section
      1.01.  Definitions.
      

     

    The
      terms
      defined in this Section (except as herein otherwise expressly provided or unless
      the context otherwise requires) for all purposes of this Indenture and of any
      indenture supplemental hereto shall have the respective meanings specified
      in
      this Section. All other terms used in this Indenture that are defined in the
      Securities Act (except as herein otherwise expressly provided or unless the
      context otherwise requires) shall have the meanings assigned to such terms
      in
      the Securities Act as in force at the date of the execution of this Indenture.
      The words “herein”, “hereof”, “hereunder” and words of similar import refer to
      this Indenture as a whole and not to any particular Article, Section or other
      subdivision. The terms defined in this Article include the plural as well as
      the
      singular.

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    “Additional
      Assets”
      means:

     

    (a)
      any
      Property (other than cash, Cash Equivalent and securities) to be owned by the
      Company or any of its Subsidiaries and used in a Related Business; or

     

    (b)
      Capital Stock of a Person that becomes a Subsidiary of the Company as a result
      of the acquisition of such Capital Stock by the Company or another Subsidiary
      of
      the Company from any Person other than the Company or an Affiliate of the
      Company; provided,
      however,
      that,
      in the case of clause (b), such Subsidiary is primarily engaged in a Related
      Business.

     

    “Affiliate”
of
      any
      specified Person means:

     

    (a)
      any
      other Person directly or indirectly controlling or controlled by or under direct
      or indirect common control with such specified Person, or 

     

    (b)
      any
      other Person who is a director or officer of:

     

    (1)
      such
      specified Person, 

     

    (2)
      any
      Subsidiary of such specified Person, or

     

    (3)
      any
      Person described in clause (a) above. 

     

    For
      the
      purposes of this definition, “control,” when used with respect to any Person,
      means the power to direct the management and policies of such Person, directly
      or indirectly, whether through the ownership of voting securities, by contract
      or otherwise; and the terms “controlling” and “controlled” have meanings
      correlative to the foregoing. For purposes of Section 4.12 and Section 4.14
      and
      the definition of “Additional Assets” only, “Affiliate” shall also mean any
      Beneficial Owner of shares representing 5% or more of the total voting power
      of
      the Voting Stock (on a fully diluted basis) of the Company or of rights or
      warrants to purchase such Voting Stock (whether or not currently exercisable)
      and any Person who would be an Affiliate of any such Beneficial Owner pursuant
      to the first sentence hereof. Notwithstanding the foregoing, in no event shall
      Citadel Equity Fund Ltd. or any of its Affiliates be considered an Affiliate
      of
      the Company.

     

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

     

    “Asset
      Sale”
means
      any sale, lease, transfer, issuance or other disposition (or series of related
      sales, leases, transfers, issuances or dispositions) by the Company or any
      of
      its Subsidiaries, including any disposition by means of a merger, consolidation
      or similar transaction (each referred to for the purposes of this definition
      as
      a “disposition”), of 

     

    
      
        
        

      

      
        2

        
          

        

      

      
        
        

      

    

    (a)
      any
      shares of Capital Stock of a Subsidiary of the Company (other than directors’
qualifying shares), or

     

    (b)
      any
      other Property of the Company or any of its Subsidiaries outside of the ordinary
      course of business of the Company or such Subsidiary, 

     

    other
      than, in the case of clause (a) or (b) above, 

     

    (1)
      any
      disposition by a Subsidiary of the Company to the Company or by the Company
      or
      one of its Subsidiaries to a Wholly Owned Subsidiary, 

     

    (2)
      any
      disposition that constitutes a Permitted Investment or Restricted Payment
      permitted by Section 4.10,

     

    (3)
      any
      disposition effected in compliance with the first paragraph of Section 5.01,
      

     

    (4)
      any
      disposition of inventory of the Company or any of its Subsidiaries in the
      ordinary course of business, or inventory or other property that in the
      reasonable judgment of the Company have become uneconomic, obsolete or worn
      out,

     

    (5)
      the
      sale or discount of accounts receivable in connection with the compromise or
      collection thereof in the ordinary course of business, and

     

    (6)
      any
      disposition in a single transaction or a series of related transactions of
      assets for aggregate consideration of less than $2.5 million.

     

    “Attributable
      Debt”
in
      respect of a Sale and Leaseback Transaction means, at any date of determination,
      

     

    (a)
      if
      such Sale and Leaseback Transaction is a Capital Lease Obligation, the amount
      of
      Debt represented thereby according to the definition of “Capital Lease
      Obligations,” and 

     

    (b)
      in
      all other instances, the present value (discounted at the weighted average
      interest rate borne by the Notes, compounded annually in the most recently
      completed twelve months) of the total obligations of the lessee for rental
      payments during the remaining term of the lease included in such Sale and
      Leaseback Transaction (including any period for which such lease has been
      extended).

     

    “Average
      Life”
means,
      as of any date of determination, with respect to any Debt or Preferred Stock,
      the quotient obtained by dividing:

     

    (a)
      the
      sum of the product of the numbers of years (rounded to the nearest one-twelfth
      of one year) from the date of determination to the dates of each successive
      scheduled principal payment of such Debt or redemption or similar payment with
      respect to such Preferred Stock multiplied by the amount of such payment by
      

     

    
      
        
        

      

      
        3

        
          

        

      

      
        
        

      

    

    (b)
      the
      sum of all such payments.

     

    “Bankruptcy
      Law”
means
      Title 11, U.S. Code or any similar federal or state law for the relief of
      debtors, or the law of any other jurisdiction relating to bankruptcy,
      insolvency, winding up, liquidation, reorganization or relief of
      debtors.

     

    “Beneficial
      Owner”
has
      the
      meaning assigned to such term in Rule 13d-3 and Rule 13d-5 under the Exchange
      Act, except that in calculating the beneficial ownership of any particular
      “person” (as such term is used in Section 13(d)(3) of the Exchange Act), such
“person” shall be deemed to have beneficial ownership of all securities that
      such “person” has the right to acquire by conversion or exercise of other
      securities, whether such right is currently exercisable or is exercisable only
      upon the occurrence of a subsequent condition or passage of time. The terms
      “Beneficially Owns” and “Beneficially Owned” have a corresponding
      meaning.

     

    “Board
      of Directors”
means
      (1) in respect of a corporation, the board of directors of the corporation,
      or
      (except if used in the definition of “Change of Control”) any duly authorized
      committee thereof; and (2) in respect of any other Person, the board or
      committee of that Person serving an equivalent function.

     

    “Board
      Resolution”
of
      a
      Person means a copy of a resolution (in form and substance satisfactory to
      the
      Trustee) certified by the secretary or an assistant secretary (or individual
      performing comparable duties) of the applicable Person to have been duly adopted
      by the Board of Directors of such Person and to be in full force and effect
      on
      the date of such certification, and delivered to the Trustee.

     

    “Bridge
      Notes”
means
      the Company’s $60,000,000 Senior Notes due February 16, 2007, issued pursuant to
      a notes purchase agreement dated as of February 5, 2007 by and between the
      Company and Citadel Equity Fund Ltd.

     

    “Business
      Day”
means
      any day other than a Legal Holiday.

     

    “Capital
      Expenditures”
means
      expenditures (whether paid in cash or other consideration or accrued as a
      liability and including that portion of Capital Lease Obligations which is
      capitalized on the consolidated balance sheet of the Company and its
      Subsidiaries) by the Company and its Subsidiaries that, in conformity with
      GAAP,
      are included in “additions to property, plant and equipment” or as capitalized
      internally developed software or comparable items reflected in the consolidated
      balance sheet of the Company and its Subsidiaries.

     

    “Capital
      Lease Obligations”
means
      any obligation under a lease that is required to be capitalized for financial
      reporting purposes in accordance with GAAP; and the amount of Debt represented
      by such obligation shall be the capitalized amount of such obligations
      determined in accordance with GAAP; and the Stated Maturity thereof shall be
      the
      date of the last payment of rent or any other amount due under such lease prior
      to the first date upon which such lease may be terminated by the lessee without
      payment of a penalty. For purposes of Section 4.11 a Capital Lease Obligation
      shall be deemed secured by a Lien on the Property being leased.

     

    “Capital
      Stock”
means,
      with respect to any Person, any shares or other equivalents (however designated)
      of any class of corporate stock or partnership interests or any other
      participations, rights, warrants, options or other interests in the nature
      of an
      equity interest in such Person, including Preferred Stock, but excluding any
      debt security convertible or exchangeable into such equity
      interest.

     

    
      
        
        

      

      
        4

        
          

        

      

      
        
        

      

    

    “Capital
      Stock Sale Proceeds”
means
      the aggregate cash proceeds received by the Company from the issuance or sale
      (other than to a Subsidiary of the Company or an employee stock ownership plan
      or trust established by the Company or any such Subsidiary for the benefit
      of
      their employees) by the Company of its Capital Stock (other than Disqualified
      Stock) after the Issue Date, net of attorneys’ fees, accountants’ fees,
      underwriters’ or placement agents’ fees, discounts or commissions and brokerage,
      consultant and other fees actually incurred in connection with such issuance
      or
      sale and net of taxes paid or payable as a result thereof.

     

    “Cash
      Equivalents”
means
      any of the following: 

     

    (a)
      Investments in U.S. Government Securities maturing within 365 days of the date
      of acquisition thereof; 

     

    (b)
      Investments in time deposit accounts, certificates of deposit and money market
      deposits maturing within 90 days of the date of acquisition thereof issued
      by a
      bank or trust company organized under the laws of the United States of America
      or any state thereof having capital, surplus and undivided profits aggregating
      in excess of $500 million and whose long-term debt is rated “A-3” or “A-” or
      higher according to Moody’s or S&P (or such similar equivalent rating by at
      least one “nationally recognized statistical rating organization” (as defined in
      Rule 436 under the Securities Act)); 

     

    (c)
      repurchase obligations with a term of not more than 30 days for underlying
      securities of the types described in clause (a) entered into with:

     

    (1)
      a
      bank meeting the qualifications described in clause (b) above, or 

     

    (2)
      any
      primary government securities dealer reporting to the Market Reports Division
      of
      the Federal Reserve Bank of New York; 

     

    (d)
      Investments in commercial paper, maturing not more than 90 days after the date
      of acquisition, issued by a corporation (other than an Affiliate of the Company)
      organized and in existence under the laws of the United States of America with
      a
      rating at the time as of which any Investment therein is made of “P-1” (or
      higher) according to Moody’s or “A-1” (or higher) according to S&P (or such
      similar equivalent rating by at least one “nationally recognized statistical
      rating organization” (as defined in Rule 436 under the Securities
      Act));

     

    (e)
      direct obligations (or certificates representing an ownership interest in such
      obligations) of any state of the United States of America (including any agency
      or instrumentality thereof) for the payment of which the full faith and credit
      of such state are pledged and which are not callable or redeemable at the
      issuer’s option, provided
      that:

     

    (1)
      the
      long-term debt of such state is rated “A-3” or “A-” or higher according to
      Moody’s or S&P (or such similar equivalent rating by at least one
“nationally recognized statistical rating organization” (as defined in Rule 436
      under the Securities Act)), and

     

    
      
        
        

      

      
        5

        
          

        

      

      
        
        

      

    

    (2)
      such
      obligations mature within 180 days of the date of acquisition thereof;
      and

     

    (f)
      time
      deposit accounts, certificates of deposit and money market deposits with (i)
      Bank of China, Industrial and Commercial Bank of China, China Construction
      Bank
      and China Merchants Bank or (ii) any other bank or trust company organized
      under
      the laws of the PRC whose long-term debt is rated as high or higher than any
      of
      those banks.

     

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

     

    (a)
      the
      Permitted Holders cease to be the “beneficial owners” (as defined in Rule 13d-3
      under the Exchange Act, except that a Person will be deemed to have “beneficial
      ownership” of all shares that any such Person has the right to acquire, whether
      such right is exercisable immediately or only after the passage of time),
      directly or indirectly, of at least 20% of the total voting power of the Voting
      Stock of the Company, whether as a result of the issuance of securities of
      the
      Company, any merger, consolidation, liquidation or dissolution of the Company,
      any direct or indirect transfer of securities by the Permitted Holders or
      otherwise (for purposes of this clause (a), the Permitted Holders will be deemed
      to beneficially own any Voting Stock of a specified corporation held by a parent
      corporation so long as the Permitted Holders beneficially own, directly or
      indirectly, in the aggregate a majority of the total voting power of the Voting
      Stock of such parent corporation); or

     

    (b)
      the
      sale, transfer, assignment, lease, conveyance or other disposition, directly
      or
      indirectly, of all or substantially all the Property of the Company and its
      Subsidiaries, considered as a whole (other than a disposition of such Property
      as an entirety or virtually as an entirety to a Wholly Owned Subsidiary or
      one
      or more Permitted Holders), shall have occurred, or the Company merges,
      consolidates or amalgamates with or into any other Person (other than one or
      more Permitted Holders) or any other Person (other than one or more Permitted
      Holders) merges, consolidates or amalgamates with or into the Company, in any
      such event pursuant to a transaction in which the outstanding Voting Stock
      of
      the Company is reclassified into or exchanged for cash, securities or other
      Property, other than any such transaction where: 

     

    (1)
      the
      outstanding Voting Stock of the Company is reclassified into or exchanged for
      other Voting Stock of the Company or for Voting Stock of the Surviving Person,
      and 

     

    (2)
      the
      holders of the Voting Stock of the Company immediately prior to such transaction
      own, directly or indirectly, not less than a majority of the Voting Stock of
      the
      Company or the Surviving Person immediately after such transaction and in
      substantially the same proportion as before the transaction; or

     

    (c)
       Continuing
      Directors cease for any reason to constitute a majority of the Board of
      Directors then in office; or 

     

    (d)
       the
      shareholders of the Company shall have approved any plan of liquidation or
      dissolution of the Company.

     

    “Clearstream” means
      Clearstream Banking, société
      anonyme,
      and any
      successor thereto.

     

    
      
        
        

      

      
        6

        
          

        

      

      
        
        

      

    

    “Closing
      Sale Price”
of
      the
      shares of Common Stock on any date means (i) if Common Stock is primarily traded
      on a securities exchange, the last sale price on such securities exchange on
      the
      applicable day, or if no sale occurred on such day, the mean between the closing
      “bid” and “asked” prices on such day, (ii) if the principal market for Common
      Stock is in the over-the-counter market, the closing sale price on the
      applicable day as published by The NASDAQ Stock Market, Inc. or similar
      organization, or if such price is not so published on such day, the mean between
      the closing “bid” and “asked” prices, if available, on such day, which prices
      may be obtained from any reputable pricing service, broker or dealer, and (iii)
      if neither clause (i) nor clause (ii) is applicable, the Fair Market Value
      as
      determined in good faith by the Board of Directors of the Company or an
      Independent Financial Advisor, as applicable. The Closing Sale Price shall
      be
      determined based on regular market hours without reference to extended after
      hours trading or pre-market trading.

     

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

     

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

     

    “Commodity
      Price Protection Agreement”
means,
      in respect of a Person, any forward contract, commodity swap agreement,
      commodity option agreement or other similar agreement or arrangement designed
      to
      protect such Person against fluctuations in commodity prices.

     

    “Common
      Depositary”
means,
      with respect to the Notes issuable or issued in global form, The Bank of New
      York, a New York banking corporation, as the Common Depositary to Euroclear
      and
      Clearstream with respect to the Notes, and any and all successors thereto
      appointed as depositary hereunder and having become such pursuant to the
      applicable provisions of this Indenture.

     

    “Common
      Stock”
means
      any stock of any class of the Company which has no preference in respect of
      dividends or of amounts payable in the event of any voluntary or involuntary
      liquidation, dissolution or winding up of the Company and which is not subject
      to redemption by the Company. Subject to the provisions of Section
      14.06,
      however, shares issuable on conversion of Notes shall include only shares of
      the
      class designated as common stock of the Company at the date of this Indenture
      (namely, the Common Stock, par value $0.0001) or shares of any class or classes
      resulting from any reclassification or reclassifications thereof and which
      have
      no preference in respect of dividends or of amounts payable in the event of
      any
      voluntary or involuntary liquidation, dissolution or winding up of the Company
      and which are not subject to redemption by the Company; provided
      that, if
      at any time there shall be more than one such resulting class, the shares of
      each such class then so issuable on conversion shall be substantially in the
      proportion which the total number of shares of such class resulting from all
      such reclassifications bears to the total number of shares of all such classes
      resulting from all such reclassifications.

     

    “Company”
means
      the corporation named as the “Company” in the first paragraph of this Indenture,
      and, subject to the provisions of Article
      5
      and
Section
      14.06,
      shall
      include its successors and assigns.

     

    
      
        
        

      

      
        7

        
          

        

      

      
        
        

      

    

    “Consolidated
      Interest Expense”
means,
      for any period, the total interest expense of the Company and its consolidated
      Subsidiaries, plus, to the extent not included in such total interest expense,
      and to the extent Incurred by the Company or its Subsidiaries, without
      duplication,

     

    (a)
      interest expense attributable to leases constituting part of a Sale and
      Leaseback Transaction and to Capital Lease Obligations, 

     

    (b)
      amortization of debt discount and debt issuance cost, including commitment
      fees,

     

    (c)
      capitalized interest, 

     

    (d)
      non-cash interest expense, 

     

    (e)
      commissions, discounts and other fees and charges owed with respect to letters
      of credit and banker’s acceptance financing, 

     

    (f)
      net
      costs associated with Hedging Obligations (including amortization of fees),
      

     

    (g)
      Disqualified Stock Dividends (other than dividends payable in Capital Stock
      other than Disqualified Stock), 

     

    (h)
      Preferred Stock Dividends (other than dividends payable in Capital Stock other
      than Disqualified Stock) of Subsidiaries, 

     

    (i)
      interest accruing on any Debt of any other Person to the extent such Debt is
      guaranteed by the Company or any of its Subsidiaries, and 

     

    (j)
      the
      cash contributions to any employee stock ownership plan or similar trust, if
      any
      and to the extent such contributions are used by such plan or trust to pay
      interest or fees to any Person (other than the Company) in connection with
      Debt
      Incurred by such plan or trust.

     

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

     

    (a)
      any
      net income (loss) of any Person (other than the Company) if such Person is
      not a
      Subsidiary of the Company, except that:

     

    (1)
      subject to the exclusions contained in clauses (c), (d) and (e) below, equity
      of
      the Company and its consolidated Subsidiaries in the net income of any such
      Person for such period shall be included in such Consolidated Net Income up
      to
      the aggregate amount of cash distributed by such Person during such period
      to
      the Company or any of its Subsidiaries as a dividend or other distribution
      (subject, in the case of a dividend or other distribution to such Subsidiary,
      to
      the limitations contained in clause (b) below), and 

     

    (2)
      the
      equity of the Company and its consolidated Subsidiaries in a net loss of any
      such Person for such period shall be included in determining such Consolidated
      Net Income, 

     

    
      
        
        

      

      
        8

        
          

        

      

      
        
        

      

    

    (b)
      any
      net income (loss) of any Subsidiary of the Company if such Subsidiary is subject
      to restrictions, directly or indirectly, on the payment of dividends or the
      making of distributions, directly or indirectly, to the Company, except
      that:

     

    (1)
      subject to the exclusions contained in clauses (c), (d) and (e) below, the
      equity of the Company and its consolidated Subsidiaries in the net income of
      any
      such Subsidiary for such period shall be included in such Consolidated Net
      Income up to the aggregate amount of cash distributed by such Subsidiary during
      such period to the Company or another of its Subsidiaries as a dividend or
      other
      distribution (subject, in the case of a dividend or other distribution to
      another Subsidiary of the Company, to the limitation contained in this clause),
      and

     

    (2)
      the
      equity of the Company and its consolidated Subsidiaries in a net loss of any
      such Subsidiary for such period shall be included in determining such
      Consolidated Net Income, 

     

    (c)
      any
      gain (but not loss) realized upon the sale or other disposition of any Property
      of the Company or any of its consolidated Subsidiaries (including pursuant
      to
      any Sale and Leaseback Transaction) that is not sold or otherwise disposed
      of in
      the ordinary course of business,

     

    (d)
      any
      extraordinary gain or loss, and

     

    (e)
      the
      cumulative effect of a change in accounting principles. 

     

    “Consolidated
      Net Worth”
means
      the total of the amounts shown on the consolidated balance sheet of the Company
      and its Subsidiaries as of the end of the most recent Fiscal Quarter of the
      Company ending prior to the taking of any action for the purpose of which the
      determination is being made, as:

     

    (a)
      the
      par or stated value of all outstanding Capital Stock of the Company, plus

     

    (b)
      paid-in capital or capital surplus relating to such Capital Stock, plus

     

    (c)
      any
      retained earnings or earned surplus, less:

     

    (1)
      any
      accumulated deficit, and 

     

    (2)
      any
      amounts attributable to Disqualified Stock or any equity security convertible
      into or exchangeable for Debt, the cost of treasury stock and the principal
      amount of any promissory notes receivable from the sale of Capital Stock of
      the
      Company or any of its Subsidiaries, each item to be determined in conformity
      with GAAP.

     

    “Consolidated
      Tangible Net Worth”
means,
      as of any date of determination, the Consolidated Net Worth less the Intangible
      Assets.

     

    “Continuing
      Directors”
means,
      as of any date of determination, any member of the Board of Directors who (a)
      was a member of the Board of Directors on the date of this Indenture or (b)
      was
      nominated for election to the Board of Directors by, or whose election was
      ratified with the approval of, a majority of the Continuing Directors who were
      members of the Board of Directors at the time of such nomination or
      election.

     

    
      
        
        

      

      
        9

        
          

        

      

      
        
        

      

    

    “Conversion
      Price”
as
      of
      any day will equal $100,000 divided by the Conversion Rate as of such
      date.

     

    “Corporate
      Trust Office”
shall
      be the address of the Trustee specified in Section
      15.03
      hereof,
      or such other address as to which the Trustee may give notice to the
      Company.

     

    “Credit
      Facilities”
means,
      with respect to the Operating Subsidiaries, one or more debt or commercial
      paper
      facilities with banks or other institutional lenders in the PRC providing for
      revolving credit loans, term loans, receivables or inventory financing
      (including through the sale of receivables or inventory to such lenders or
      to
      special purpose, bankruptcy remote entities formed to borrow from such lenders
      against such receivables or inventory) or trade letters of credit, in each
      case
      together with any Refinancings thereof by any lender or syndicate of lenders.
      

     

    “CSST
      HK” means
      China Security & Surveillance (HK) Ltd., a wholly-owned subsidiary of
      Safetech, incorporated under the laws of Hong Kong.

     

    “Currency
      Exchange Protection Agreement”
means,
      in respect of a Person, any foreign exchange contract, currency swap agreement,
      currency option or other similar agreement or arrangement designed to protect
      such Person against fluctuations in currency exchange rates. 

     

    “Custodian”
means,
      with respect to the Notes issuable or issued in global form, the Person
      specified in Section
      2.02(e)
      as
      Custodian with respect to the Notes, and any and all successors thereto
      appointed as custodian hereunder and having become such pursuant to the
      applicable provisions of this Indenture.

     

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

     

    (a)
      the
      principal of and premium (if any) in respect of:

     

    (1)
      debt
      of such Person for money borrowed, and

     

    (2)
      debt
      evidenced by notes, debentures, bonds or other similar instruments for the
      payment of which such Person is responsible or liable; 

     

    (b)
      all
      Capital Lease Obligations of such Person and all Attributable Debt in respect
      of
      Sale and Leaseback Transactions entered into by such Person; 

     

    (c)
      all
      obligations of such Person representing the deferred purchase price of Property,
      all conditional sale obligations of such Person and all obligations of such
      Person under any title retention agreement (but excluding trade accounts payable
      arising in the ordinary course of business); 

     

    (d)
      all
      obligations of such Person for the reimbursement of any obligor on any letter
      of
      credit, banker’s acceptance or similar credit transaction (other than
      obligations with respect to letters of credit securing obligations (other than
      obligations described in (a) through (c) above) entered into in the ordinary
      course of business of such Person to the extent such letters of credit are
      not
      drawn upon or, if and to the extent drawn upon, such drawing is reimbursed
      no
      later than the third Business Day following receipt by such Person of a demand
      for reimbursement following payment on the letter of credit); 

     

    
      
        
        

      

      
        10

        
          

        

      

      
        
        

      

    

    (e)
      the
      amount of all obligations of such Person with respect to the Repayment of any
      Disqualified Stock or, with respect to any Subsidiary of such Person, any
      Preferred Stock (but excluding, in each case, any accrued dividends);

     

    (f)
      all
      obligations of the type referred to in clauses (a) through (e) above of other
      Persons and all dividends of other Persons for the payment of which, in either
      case, such Person is responsible or liable, directly or indirectly, as obligor,
      guarantor or otherwise, including by means of any guarantee; 

     

    (g)
      all
      obligations of the type referred to in clauses (a) through (f) above of other
      Persons secured by any Lien on any Property of such Person (whether or not
      such
      obligation is assumed by such Person), the amount of such obligation being
      deemed to be the lesser of the Fair Market Value of such Property and the amount
      of the obligation so secured; and 

     

    (h)
      to
      the extent not otherwise included in this definition, Hedging Obligations of
      such Person. 

     

    The
      amount of Debt of any Person at any date shall be the outstanding balance,
      or
      the accreted value of such Debt in the case of Debt issued with original issue
      discount, at such date of all unconditional obligations as described above
      and
      the maximum liability, upon the occurrence of the contingency giving rise to
      the
      obligation, of any contingent obligations at such date. The amount of Debt
      represented by a Hedging Obligation shall be equal to the
      notional amount of such Hedging Obligation. 

     

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

     

    “Definitive
      Note”
means
      a
      certificated Note registered in the name of the holder thereof and issued in
      accordance with Section
      2.05
      or
2.07
      hereof,
      in substantially the form of Exhibit
      A
      hereto
      except that such Note shall not bear the Global Note Legend and shall not have
      the “Schedule of Exchanges of Interests in the Global Note” attached
      thereto.

     

    “Disqualified
      Stock”
means
      any Capital Stock of the Company or any of its Subsidiaries that by its terms
      (or by the terms of any security into which it is convertible or for which
      it is
      exchangeable, in either case at the option of the holder thereof) or
      otherwise:

     

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

     

    (b)
      is or
      may become redeemable or repurchaseable at the option of the holder thereof
      (except that any Capital Stock that would constitute Disqualified Stock solely
      because the holders of such Capital Stock have the right to require the Company
      to repurchase such Capital Stock upon the occurrence of a Change of Control
      or
      an Asset Sale shall not constitute Disqualified Stock if the terms of such
      Capital Stock provide that the Company may not repurchase or redeem any such
      Capital Stock pursuant to such provisions unless such repurchase or redemption
      complies with Section
      4.10
      hereof),
      in whole or in part, or 

     

    
      
        
        

      

      
        11

        
          

        

      

      
        
        

      

    

    (c)
      is
      convertible or exchangeable at the option of the holder thereof for Debt or
      Disqualified Stock,

     

    on
      or
      prior to, in the case of clause (a), (b) or (c), the first anniversary of the
      Stated Maturity of the Notes.

     

    “Disqualified
      Stock Dividends”
means
      all dividends with respect to Disqualified Stock of the Company held by Persons
      other than a Wholly Owned Subsidiary. The amount of any such dividend shall
      be
      equal to the quotient of such dividend divided by the difference between one
      and
      the maximum statutory federal income tax rate (expressed as a decimal number
      between 1 and 0) then applicable to the Company.

     

    “Domestic
      Subsidiary”
means
      any Subsidiary of the Company other than (a) a Foreign Subsidiary or (b) a
      Subsidiary of a Foreign Subsidiary.

     

    “EBITDA”
means,
      for any period, an amount equal to, for the Company and its consolidated
      Subsidiaries:

     

    (a)
      the
      sum of Consolidated Net Income for such period, plus the following to the extent
      reducing Consolidated Net Income for such period: 

     

    (1)
      the
      provision for taxes based on income or profits or utilized in computing net
      loss,

     

    (2)
      Consolidated Interest Expense,

     

    (3)
      depreciation, 

     

    (4)
      amortization of intangibles, and 

     

    (5)
      any
      other non-cash items (other than any such non-cash item to the extent that
      it
      represents an accrual of, or reserve for, cash expenditures in any future period
      or amortization of a prepaid cash expense paid in a period prior to the period
      that is subject to calculation), minus 

     

    (b)
      all
      non-cash items increasing Consolidated Net Income for such period. 

     

    Notwithstanding
      the foregoing clause (a), the provision for taxes and the depreciation,
      amortization and non-cash items of a Subsidiary of the Company shall be added
      to
      Consolidated Net Income to compute EBITDA only to the extent (and in the same
      proportion) that the net income of such Subsidiary was included in calculating
      Consolidated Net Income and only if a corresponding amount would be permitted
      at
      the date of determination to be dividended to the Company by such Subsidiary
      without prior approval (that has not been obtained), pursuant to the terms
      of
      its charter and all agreements, instruments, judgments, decrees, orders,
      statutes, rules and governmental regulations applicable to such Subsidiary
      or
      its shareholders. 

     

    
      
        
        

      

      
        12

        
          

        

      

      
        
        

      

    

    “Euroclear”
means
      Euroclear Bank, S.A./N.V., and any successor thereto.

     

    “Exchange
      Act”
means
      the U.S. Securities Exchange Act of 1934, as amended, and the rules and
      regulations promulgated thereunder, as in effect from time to time.

     

    “Ex-Dividend
      Time”
means,
      with respect to any distribution on shares of Common Stock, the first date
      on
      which the shares of Common Stock trade regular way on the principal securities
      market on which the shares of Common Stock are then traded without the right
      to
      receive such distribution.

     

    “Fair
      Market Value”
means,
      with respect to any Property at the time of determination, the price that could
      be negotiated in an arm’s-length free market transaction, for cash, between a
      willing seller and a willing buyer, neither of whom is under undue pressure
      or
      compulsion to complete the transaction. Fair Market Value shall be determined,
      except as otherwise provided,

     

    (a)
      if
      such Property has a Fair Market Value equal to or less than $1.0 million, by
      any
      Officer of the Company,

     

    (b)
      if
      such Property has a Fair Market Value in excess of $1.0 million, by a majority
      of the Board of Directors and evidenced by a Board Resolution delivered to
      the
      Trustee, or 

     

    (c)
      if
      such Property has a Fair Market Value in excess of $5.0 million, by an
      Independent Financial Advisor and evidenced by a written opinion from such
      Independent Financial Advisor dated within 30 days of the relevant transaction
      delivered to the Trustee.

     

    “Fiscal
      Quarter”
means
      each of the three month periods ending on March 31, June 30, September 30 and
      December 31.

     

    “Fixed
      Charge Coverage Ratio”
means,
      as of any date of determination, the ratio of:

     

    (a)
      the
      aggregate amount of EBITDA for the most recent four consecutive Fiscal Quarters
      ending prior to such determination date to 

     

    (b)
      Consolidated Interest Expense for such four Fiscal Quarters; 

     

    provided,
      however,
      that:

     

    (1)
      if

     

    (A)
      since
      the beginning of such period the Company or any of its Subsidiaries has Incurred
      any Debt that remains outstanding or Repaid any Debt, or 

     

    (B)
      the
      transaction giving rise to the need to calculate the Fixed Charge Coverage
      Ratio
      is an Incurrence or Repayment of Debt, 

     

    
      
        
        

      

      
        13

        
          

        

      

      
        
        

      

    

    Consolidated
      Interest Expense for such period shall be calculated after giving effect on
      a
pro
      forma basis
      to
      such Incurrence or Repayment as if such Debt was Incurred or Repaid on the
      first
      day of such period, provided
      that,
      in
      the event of any such Repayment of Debt, EBITDA for such period shall be
      calculated as if the Company or such Subsidiary had not earned any interest
      income actually earned during such period in respect of the funds used to Repay
      such Debt, and provided
      further
      that the
      amount of Debt Incurred under revolving credit facilities shall be deemed to
      be
      the average daily balance of such Debt during such period (or any shorter period
      in which such facilities are in effect) and

     

    (2)
      if

     

    (A)
      since
      the beginning of such period the Company or any of its Subsidiaries shall have
      made any Asset Sale or an Investment (by merger or otherwise) in any Subsidiary
      of the Company (or any Person which becomes a Subsidiary of the Company) or
      an
      acquisition of Property which constitutes all or substantially all of an
      operating unit of a business, 

     

    (B)
      the
      transaction giving rise to the need to calculate the Fixed Charge Coverage
      Ratio
      is such an Asset Sale, Investment or acquisition, or 

     

    (C)
      since
      the beginning of such period any Person (that subsequently became a Subsidiary
      of the Company or was merged with or into the Company or any Subsidiary of
      the
      Company since the beginning of such period) shall have made such an Asset Sale,
      Investment or acquisition, 

     

    then
      EBITDA for such period shall be calculated after giving pro
      forma
      effect
      to such Asset Sale, Investment or acquisition as if such Asset Sale, Investment
      or acquisition had occurred on the first day of such period. 

     

    If
      any
      Debt bears a floating rate of interest and is being given pro
      forma
      effect,
      the interest expense on such Debt shall be calculated as if the base interest
      rate in effect for such floating rate of interest on the date of determination
      had been the applicable base interest rate for the entire period (taking into
      account any Interest Rate Agreement applicable to such Debt if such Interest
      Rate Agreement has a remaining term in excess of 12 months). In the event the
      Capital Stock of any Subsidiary of the Company is sold during the period, the
      Company shall be deemed, for purposes of clause (1) above, to have Repaid during
      such period the Debt of such Subsidiary to the extent the Company and its
      continuing Subsidiaries are no longer liable for such Debt after such
      sale.

     

    “Foreign
      Subsidiary”
means
      any Subsidiary of the Company which is not organized under the laws of the
      United States of America or any State thereof or the District of
      Columbia.

     

    “GAAP”
means
      United States generally accepted accounting principles as in effect on the
      Issue
      Date, including those set forth in:

     

    (a)
      the
      opinions and pronouncements of the Accounting Principles Board of the American
      Institute of Certified Public Accountants, 

     

    
      
        
        

      

      
        14

        
          

        

      

      
        
        

      

    

    (b)
      the
      statements and pronouncements of the Financial Accounting Standards Board,
      

     

    (c)
      such
      other statements by such other entity as approved by a significant segment
      of
      the accounting profession, and 

     

    (d)
      the
      rules and regulations of the Commission governing the inclusion of financial
      statements (including pro
      forma financial
      statements) in periodic reports required to be filed pursuant to Section 13
      of
      the Exchange Act, including opinions and pronouncements in staff accounting
      bulletins and similar written statements from the accounting staff of the
      Commission. 

     

    All
      ratios and computations based on GAAP contained in this Indenture will be
      computed in conformity with GAAP.

     

    “Global
      Note Legend”
means
      the legend set forth on all Global Notes issued under this
      Indenture.

     

    “Global
      Notes”
means
      the global Notes in the form of Exhibit
      A
      hereto
      issued in accordance with Article
      2
      hereof.

     

    “Governmental
      Approval”
means
      any authorization of or by, consent of, approval of, license from, ruling of,
      permit from, tariff by, rate of, certification by, exemption from, filing with
      (except any filing relating to the perfection of security interests), variance
      from, claim of, order from, judgment from, decree of, publication to or by,
      notice to, declaration of or with or registration by or with any Governmental
      Authority, whether tacit or express.

     

    “Governmental
      Authority”
means
      any federal, state, national, provincial, municipal, local, territorial or
      other
      government department, ministry (including local counterparts thereof),
      commission, board, agency, regulatory authority, instrumentality, judicial
      or
      administrative body, domestic or foreign.

     

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

     

    (a)
       to
      purchase or pay (or advance or supply funds for the purchase or payment of)
      such
      Debt of such other Person (whether arising by virtue of partnership
      arrangements, or by agreements to keep-well, to purchase assets, goods,
      securities or services, to take-or-pay or to maintain financial statement
      conditions or otherwise), or 

     

    (b)
       entered
      into for the purpose of assuring in any other manner the obligee against loss
      in
      respect thereof (in whole or in part); 

     

    provided,
      however,
      that the
      term “guarantee” shall not include:

     

    (1)
      endorsements for collection or deposit in the ordinary course of business,
      or

     

    
      
        
        

      

      
        15

        
          

        

      

      
        
        

      

    

    (2)
      a
      contractual commitment by one Person to invest in another Person for so long
      as
      such Investment is reasonably expected to constitute a Permitted Investment
      under clause (a), (b) or (c) of the definition of “Permitted Investment.”

     

    The
      term
“guarantee” used as
      a verb
      has a corresponding meaning. The term “guarantor” shall mean any Person
      Guaranteeing
      any
      obligation.

     

    “Guarantee”
means
      the Guarantee of the Notes by each of the Guarantors pursuant to Article
      9
      and in
      the form of the Guarantee attached as Exhibit
      B
      and any
      additional Guarantee of the Notes to be executed by any Subsidiary of the
      Company pursuant to Section
      4.18.

     

    “Guarantor”
means
      any of Safetech, CSST HK, and any other Subsidiary of the Company that becomes
      a
      Guarantor pursuant to Section
      4.18
      or who
      otherwise executes and delivers a supplemental indenture (in form satisfactory
      to the Trustee) to the Trustee providing for a Guarantee; provided
      that any
      Person constituting a Guarantor as described above shall cease to constitute
      a
      Guarantor when its respective Guarantee is released in accordance with the
      terms
      of this Indenture.

     

    “Hedging
      Obligation”
of
      any
      Person means any obligation of such Person pursuant to any Interest Rate
      Agreement, Currency Exchange Protection Agreement, Commodity Price Protection
      Agreement or any other similar agreement or arrangement

     

    “Incur”
means,
      with respect to any Debt or other obligation of any Person, to create, issue,
      incur (by merger, conversion, exchange or otherwise), extend, assume, Guarantee
      or become liable in respect of such Debt or other obligation or the recording,
      as required pursuant to GAAP or otherwise, of any such Debt or obligation on
      the
      balance sheet of such Person (and “Incurrence” and “Incurred” shall have
      meanings correlative to the foregoing); provided,
      however,
      that a
      change in GAAP that results in an obligation of such Person that exists at
      such
      time, and is not theretofore classified as Debt, becoming Debt shall not be
      deemed an Incurrence of such Debt; and provided
      further,
      however,
      that
      any Debt or other obligations of a Person existing at the time such Person
      becomes a Subsidiary (whether by merger, consolidation, acquisition or
      otherwise) shall be deemed to be Incurred by such Subsidiary at the time it
      becomes a Subsidiary.

     

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

     

    “Independent
      Financial Advisor”
means
      an investment banking firm of international standing or any third party
      appraiser of international standing, provided
      that
      such firm or appraiser is not an Affiliate of the Company. 

     

    “Intangible
      Assets” shall
      mean as of the date of any determination thereof the total amount of all assets
      of the Company and its Subsidiaries classified as goodwill, patents, trade
      names, trademarks, copyrights, franchises, experimental expense, organization
      expense, unamortized debt discount and expense, deferred assets other than
      prepaid insurance and prepaid taxes, the excess of cost of shares acquired
      over
      book value of related assets and such other assets as are properly classified
      as
“intangible
      assets”
in
      accordance with GAAP.

     

    
      
        
        

      

      
        16

        
          

        

      

      
        
        

      

    

    “Interest”
means,
      when used with reference to the Notes, any interest payable under the terms
      of
      the Notes.

     

    “Interest
      Rate Agreement”
means,
      for any Person, any interest rate swap agreement, interest rate cap agreement,
      interest rate collar agreement or other similar agreement designed to protect
      against fluctuations in interest rates.

     

    “Investment”
by
      any
      Person means any direct or indirect loan (other than advances to customers
      in
      the ordinary course of business that are recorded as accounts receivable on
      the
      balance sheet of such Person), advance or other extension of credit or capital
      contribution (by means of transfers of cash or other Property to others or
      payments for Property or services for the account or use of others, or
      otherwise) to, or Incurrence of a Guarantee of any obligation of, or purchase
      or
      acquisition of Capital Stock, bonds, notes, debentures or other securities
      or
      evidence of Debt issued by, any other Person. 

     

    In
      determining the amount of any Investment made by transfer of any Property other
      than cash, such Property shall be valued at its Fair Market Value at the time
      of
      such Investment.

     

    “Investor
      Rights Agreement”
means
      the investor rights agreement dated the Issue Date by and among the Company,
      the
      Guarantors, the Operating Subsidiaries, the Shareholders and Citadel Equity
      Fund
      Ltd.

     

    “Issue
      Date”
means
      February 16, 2007.

     

    “Legal
      Holiday”
means
      a
      Saturday, a Sunday or a day on which banking institutions in the City of New
      York, the PRC, London, England, the city in which the Corporate Trust Office
      of
      the Trustee is located or any other place of payment on the Notes are authorized
      by law, regulation or executive order to remain closed. 

     

    “Leverage
      Ratio”
means
      the ratio of:

     

    (a)
      the
      outstanding Debt of the Company and its Subsidiaries on a consolidated basis,
      to

     

    (b)
      EBITDA for the most recently completed four Fiscal Quarters;

     

    (1)
      if:

     

    (A)
       since
      the
      beginning of such period the Company or any of its Subsidiaries has Incurred
      any
      Debt that remains outstanding or Repaid any Debt, or 

     

    (B) the
      transaction giving rise to the need to calculate the Leverage Ratio is an
      Incurrence or Repayment of Debt, 

     

    Consolidated
      Interest Expense for such period shall be calculated after giving effect on
      a
pro
      forma basis
      to
      such Incurrence or Repayment as if such Debt was Incurred or Repaid on the
      first
      day of such period, provided
      that,
      in
      the event of any such Repayment of Debt, EBITDA for such period shall be
      calculated as if the Company or such Subsidiary had not earned any interest
      income actually earned during such period in respect of the funds used to Repay
      such Debt, and provided
      further
      that the
      amount of Debt Incurred under revolving credit facilities shall be deemed to
      be
      the average daily balance of such Debt during such period (or any shorter period
      in which such facilities are in effect) and

     

    
      
        
        

      

      
        17

        
          

        

      

      
        
        

      

    

    (2)
      if

     

    (A)
      since
      the beginning of such period, the Company or any of its Subsidiaries shall
      have
      made any Asset Sale or an Investment (by merger or otherwise) in any Subsidiary
      of the Company (or any Person that becomes such a Subsidiary) or an acquisition
      of Property, 

     

    (B)
      the
      transaction giving rise to the need to calculate the Leverage Ratio is such
      an
      Asset Sale, Investment or acquisition, or 

     

    (C)
      since
      the beginning of such period any Person (that subsequently became a Subsidiary
      of the Company or was merged with or into the Company or any of its Subsidiaries
      since the beginning of such period) shall have made such an Asset Sale,
      Investment or acquisition, 

     

    EBITDA
      for such period shall be calculated after giving pro
      forma
      effect
      to such Asset Sale, Investment or acquisition as if such Asset Sale, Investment
      or acquisition occurred on the first day of such period.

     

    If
      any
      Debt bears a floating rate of interest and is being given pro
      forma
      effect,
      the interest expense on such Debt shall be calculated as if the base interest
      rate in effect for such floating rate of interest on the date of determination
      had been the applicable base interest rate for the entire period (taking into
      account any Interest Rate Agreement applicable to such Debt if such Interest
      Rate Agreement has a remaining term in excess of 12 months). In the event the
      Capital Stock of any Subsidiary of the Company is sold during the period, the
      Company shall be deemed, for purposes of clause (1) above, to have Repaid during
      such period the Debt of such Subsidiary to the extent the Company and its
      continuing Subsidiaries are no longer liable for such Debt after such
      sale.

     

    “Lien”
means,
      with respect to any Property of any Person, any mortgage or deed of trust,
      pledge, hypothecation, assignment, deposit arrangement, security interest,
      lien,
      charge, easement (other than any easement not materially impairing usefulness
      or
      marketability), encumbrance, preference, priority or other security agreement
      or
      preferential arrangement of any kind or nature whatsoever on or with respect
      to
      such Property (including any Capital Lease Obligation, conditional sale or
      other
      title retention agreement having substantially the same economic effect as
      any
      of the foregoing or any Sale and Leaseback Transaction). 

     

    “Material
      Adverse Effect”
means
      a
      material adverse effect on (a) the property, business, operations, financial
      condition, liabilities or capitalization of the Company or any of its
      Subsidiaries, (b) the ability of any such Person to perform its payment
      obligations or any of its material obligations under any of the Transaction
      Documents to which such Person is a party, (c) the validity or enforceability
      of
      any of the Transaction Documents, (d) the material rights and remedies of the
      Trustee, under any of the Transaction Documents or (e) the timely payment of
      any
      principal or premium of, or interest on, any of the Notes.

     

    
      
        
        

      

      
        18

        
          

        

      

      
        
        

      

    

    “Moody’s”
means
      Moody’s Investors Service, Inc. or any successor to the rating agency business
      thereof.

     

    “Net
      Available Cash”
from
      any Asset Sale means cash payments received therefrom (including any cash
      payments received by way of deferred payment of principal pursuant to a note
      or
      installment receivable or otherwise, but only as and when received, but
      excluding any other consideration received in the form of assumption by the
      acquiring Person of Debt or other obligations relating to the Property that
      is
      the subject of such Asset Sale or received in any other non-cash form), in
      each
      case net of: 

     

    (a)
      all
      legal, title and recording tax expenses, commissions and other fees and expenses
      incurred, and all U.S. federal, state, national, provincial, foreign and local
      taxes required to be accrued as a liability under GAAP, as a consequence of
      such
      Asset Sale, 

     

    (b)
      all
      payments made on or in respect of any Debt that is secured by any Property
      subject to such Asset Sale, in accordance with the terms of any Lien upon such
      Property, or which must by its terms, or in order to obtain a necessary consent
      to such Asset Sale, or by applicable law, be repaid out of the proceeds from
      such Asset Sale, 

     

    (c)
      all
      distributions and other payments required to be made to minority interest
      holders in Subsidiaries or joint ventures as a result of such Asset Sale, and
      

     

    (d)
      the
      deduction of appropriate amounts provided by the seller as a reserve, in
      accordance with GAAP, against any liabilities associated with the Property
      disposed of in such Asset Sale and retained by the Company or any of its
      Subsidiaries after such Asset Sale.

     

    “Note
      Obligations”
means
      the Notes, the Guarantees and all other obligations of any obligor under this
      Indenture, the Notes and the Guarantees. 

     

    “Notes
      Purchase Agreement”
means
      the Notes purchase agreement dated February 16, 2007 by and among the Company,
      the Guarantors, the Operating Subsidiaries and Citadel Equity Fund
      Ltd.

     

    “Notes”
is
      defined in the preamble.

     

    “Noteholder”
or
      “holder”
as
      applied to any Note, or other similar terms (but excluding the term “Beneficial
      Holder”), means any Person in whose name at the time a particular Note is
      registered on the Registrar’s books.

     

    “Notice
      Date”
means
      the date of mailing of the notice pursuant to Section
      3.02(b).

     

    “Obligations”
means
      all obligations for principal, premium, interest, penalties, fees,
      indemnifications, reimbursements, damages and other liabilities payable under
      the documentation governing any Debt.

     

    “Officer”
means,
      with respect to the Company, its Chairman of the Board, the Chief Executive
      Officer, the Chief Financial Officer or any Vice President (whether or not
      designated by a number or numbers or word or words added before or after the
      title “Vice President”) and the Treasurer or any Assistant Treasurer, or the
      Secretary or Assistant Secretary.

     

    
      
        
        

      

      
        19

        
          

        

      

      
        
        

      

    

    “Officers’
      Certificate”
means
      a
      certificate, in form and substance satisfactory to the Trustee, signed by two
      Officers of the Company, at least one of whom shall be the principal executive
      officer or principal financial officer of the Company, and which certificate
      meets the requirements of Section
      15.05
      hereof
      and is delivered to the Trustee.

     

    “Operating
      Subsidiaries”
means
      (i) Golden Group Corporation (Shenzhen) Limited, a limited liability company
      organized and existing under the laws of the PRC and a wholly-owned Subsidiary
      of Safetech, (ii) Shanghai Cheng Feng Digital Technology Co., Ltd., a limited
      liability company organized and existing under the laws of the PRC and a
      wholly-owned Subsidiary of CSST HK and (iii) China Security & Surveillance
      Technology (PRC), Inc., a limited liability company organized and existing
      under
      the laws of the PRC and a wholly-owned Subsidiary of the Company.

     

    “Opinion
      of Counsel”
means
      a
      written opinion, in form and substance satisfactory to the Trustee, from legal
      counsel who is acceptable to the Trustee and which meets the requirements of
      Section
      15.05
      hereof.

     

    “Outstanding”,
      when
      used with reference to Notes and subject to the provisions of Section
      12.04,
      means,
      as of any particular time, all Notes authenticated and delivered by the Trustee
      under this Indenture, except:

     

    (a)
      Notes
      theretofore canceled by the Trustee or delivered to the Trustee for
      cancellation;

     

    (b)
      Notes, or portions thereof, (i) for the redemption of which monies in the
      necessary amount shall have been deposited in trust with the Trustee or with
      any
      paying agent (other than the Company) or (ii) which shall have been otherwise
      discharged in accordance with Article
      11;

     

    (c)
      Notes
      in lieu of which, or in substitution for which, other Notes shall have been
      authenticated and delivered pursuant to the terms of Section
      2.06;
      and

     

    (d)
      Notes
      converted into Common Stock pursuant to Article
      14
      and
      Notes deemed not outstanding pursuant to Article
      3.

     

    “Permitted
      Holders”
means
      Mr. Tu Guo Shen, a resident
      of Hangzhou in the PRC, and his estate, spouse, ancestors and lineal
      descendants, the legal representatives of any of the foregoing and the
      trustees
      of
      any bona fide trusts of which the foregoing are the sole beneficiaries or the
      grantors, or any Person of which the foregoing “beneficially owns” (as defined
      in Rule 13d-3 under the Exchange Act), individually or collectively with any
      of
      the foregoing, at least 50% of the total voting power of the Voting Stock of
      such Person.

     

    “Permitted
      Investment”
means
      any Investment by the Company or any of its Subsidiaries in: 

     

    
      
        
        

      

      
        20

        
          

        

      

      
        
        

      

    

    (a) the
      Company or any of its Subsidiaries engaged in a Related Business;

     

    (b)
       any
      Person that will, upon the making of such Investment, become a Subsidiary of
      the
      Company, provided
      that the
      primary business of such Subsidiary is a Related Business; 

     

    (c)
       any
      Person if as a result of such Investment such Person is merged or consolidated
      with or into, or transfers or conveys all or substantially all its Property
      to,
      the Company or a Subsidiary of the Company, provided
      that
      such Person’s primary business is a Related Business;

     

    (d)
       cash
      and
      Cash Equivalents; 

     

    (e)
       receivables
      owing to the Company or any of its Subsidiaries, 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 Company
      or
      such Subsidiary deems reasonable under the circumstances; 

     

    (f)
       payroll,
      travel and similar advances to cover matters that are expected at the time
      of
      such advances ultimately to be treated as expenses under GAAP and that are
      made
      in the ordinary course of business;

     

    (g)
       stock,
      obligations or other securities received in settlement of debts created in
      the
      ordinary course of business and owing to the Company or one of its Subsidiaries
      or in satisfaction of judgments; 

     

    (h)
       any
      Person to the extent such Investment represents the non-cash portion of the
      consideration received in connection with (A) an Asset Sale consummated in
      compliance with Section
      4.12
      or (B)
      any disposition of Property not constituting an Asset Sale;

     

    (i)
       Hedging
      Obligations by the Company or any Guarantor that are otherwise permitted to
      be
      incurred under this Indenture, and which were entered into for financial
      management of interest rates, foreign currency exchange rates or commodity
      prices and are directly related to transactions entered into by such Person
      in
      the ordinary course of its business, and not for speculative purposes;
      and

     

    (j)
       other
      Investments made for Fair Market Value that do not exceed 10% of the aggregate
      amount of Consolidated Net Income accrued during the period (treated as one
      accounting period) from the beginning of the Fiscal Quarter after the Issue
      Date
      to the end of the most recent Fiscal Quarter ending prior to the date of such
      Investment (or if the aggregate amount of Consolidated Net Income for such
      period shall be a deficit, minus 100% of such deficit).

     

    “Permitted
      Liens”
      means:

     

    (a)
       Liens
      in
      favor of the Company or the Guarantors;

     

    (b)
       Liens
      securing, or created for the benefit of securing, the Notes and the
      Guarantees;

     

    (c)
       Liens
      securing Debt of a PRC Subsidiary under Credit Facilities, provided
      that any
      such Lien is limited to the Property of such PRC Subsidiary;

     

    
      
        
        

      

      
        21

        
          

        

      

      
        
        

      

    

    (d) leases,
      licenses, subleases and sublicenses of assets (including, without limitation,
      real property and intellectual property rights) which do not materially
      interfere with the ordinary conduct of the business of the Company or any of
      the
      Subsidiaries;

     

    (e) Liens
      for
      taxes, assessments or governmental charges or levies on the Property of the
      Company or any of its Subsidiaries if the same shall not at the time be
      delinquent or thereafter can be paid without penalty, or are being contested
      in
      good faith and by appropriate proceedings promptly instituted and diligently
      concluded, provided
      that any
      reserve or other appropriate provision that shall be required in conformity
      with
      GAAP shall have been made therefor; 

     

    (f)
       Liens
      imposed by law, such as carriers’, warehousemen’s and mechanics’ Liens and other
      similar Liens, on the Property of the Company or any of its Subsidiaries arising
      in the ordinary course of business and securing payment of obligations that
      are
      not more than 60 days past due or are being contested in good faith and by
      appropriate proceedings;

     

    (g)
       Liens
      on
      the Property of the Company or any of its Subsidiaries Incurred in the ordinary
      course of business to secure performance of obligations with respect to
      statutory or regulatory requirements, performance or return-of-money bonds,
      surety bonds or other obligations of a like nature and Incurred in a manner
      consistent with industry practice, in each case which are not Incurred in
      connection with the borrowing of money, the obtaining of advances or credit
      or
      the payment of the deferred purchase price of Property from vendors and others
      and which do not in the aggregate impair in any material respect the use of
      Property in the operation of the business of the Company and its Subsidiaries
      taken as a whole;

     

    (h)
       Liens
      on
      Property at the time the Company or any of its Subsidiaries acquired such
      Property, including any acquisition by means of a merger or consolidation with
      or into the Company or any of its Subsidiaries; provided,
      however,
      that
      any such Lien may not extend to any other Property of the Company or any of
      its
      Subsidiaries; provided
      further, that
      such
      Liens shall not have been Incurred in anticipation of or in connection with
      the
      transaction or series of transactions pursuant to which such Property was
      acquired by the Company or any of its Subsidiaries; 

     

    (i)
       Liens
      on
      the Property of a Person at the time such Person becomes a Subsidiary of the
      Company; provided,
      however,
      that
      any such Lien may not extend to any other Property of the Company or any other
      Subsidiary of the Company that is not a direct Subsidiary of such Person;
provided
      further, that
      any
      such Lien was not Incurred in anticipation of or in connection with the
      transaction or series of transactions pursuant to which such Person became
      a
      Subsidiary of the Company; 

     

    (j)
       pledges
      or deposits by the Company or any of its Subsidiaries under workers’
compensation laws, unemployment insurance laws or similar legislation, or good
      faith deposits in connection with bids, tenders, contracts (other than for
      the
      payment of Debt) or leases to which the Company or any of its Subsidiaries
      is
      party, or deposits to secure public or statutory obligations of the Company, or
      deposits for the payment of rent, in each case Incurred in the ordinary course
      of business; 

     

    
      
        
        

      

      
        22

        
          

        

      

      
        
        

      

    

    (k)
       utility
      easements, building restrictions and such other encumbrances or charges against
      real Property as are of a nature generally existing with respect to properties
      of a similar character;

     

    (l)
       Liens
      existing on the Issue Date not otherwise described in clauses (a) through (h)
      above;

     

    (m)
       Liens
      on
      the Property of the Company or any of its Subsidiaries to secure any
      Refinancing, in whole or in part, of any Debt secured by Liens referred to
      in
      clause (g), (h) or (k) above; provided,
      however,
      that
      any such Lien shall be limited to all or part of the same Property that secured
      the original Lien (together with improvements and accessions to such Property),
      and the aggregate principal amount of Debt (and other obligations thereunder)
      that is secured by such Lien shall not be increased to an amount greater than
      the sum of:

     

    (1)
       the
      outstanding principal amount, or, if greater, the committed amount, of the
      Debt
      (and other obligations thereunder) secured by Liens described under clause
      (g),
      (h) or (k) above, as the case may be, at the time the original Lien became
      a
      Permitted Lien under this Indenture, and 

     

    (2)
       an
      amount
      necessary to pay any fees and expenses, including premiums and defeasance costs,
      incurred by the Company or such Subsidiary in connection with such
      Refinancing;

     

    (n)
       judgment
      Liens not giving rise to en Event of Default so long as such Lien is 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 such proceedings may be initiated has not expired; and

     

    (o) Liens
      securing Debt in respect of the purchase and development of an industrial park
      in Shenzhen, PRC, in
      an
      aggregate principal amount not to exceed RMB 200 million outstanding at any
      one
      time.

     

    “Permitted
      Refinancing Debt”
means
      any Debt that Refinances any other Debt, including any successive Refinancings,
      so long as:

     

    (a)
       such
      Debt
      is in an aggregate principal amount (or if Incurred with original issue
      discount, an aggregate issue price) not in excess of the sum of: 

     

    (1)
      the
      aggregate principal amount (or if Incurred with original issue discount, the
      aggregate accreted value) then outstanding of the Debt being Refinanced,
      and

     

    (2)
      an
      amount necessary to pay any fees and expenses, including premiums and defeasance
      costs, related to such Refinancing, 

     

    (b)
       the
      Average Life of such Debt is equal to or greater than the Average Life of the
      Debt being Refinanced,

     

    
      
        
        

      

      
        23

        
          

        

      

      
        
        

      

    

    (c)
       the
      Stated Maturity of such Debt is no earlier than the Stated Maturity of the
      Debt
      being Refinanced, 

     

    (d)
       the
      new
      Debt shall not be senior in right of payment to the Debt that is being
      Refinanced, and

     

    (e)
       the
      new
      Debt, the proceeds of which are used to Refinance the Notes or any Debt that
      is
pari
      passu
      with or
      subordinate to the Notes or a Guarantee, shall only be permitted if (A) in
      case
      the Notes are refinanced in part or the Debt to be Refinanced is pari
      passu
      with the
      Notes or a Guarantee, such new Debt, by its terms or by terms of any agreement
      or instrument pursuant to which such new Debt is outstanding, is expressly
      made
pari
      passu
      with, or
      subordinate in right of payment to, the remaining Notes or such Guarantee,
      or
      (B) in case the Debt to be Refinanced is subordinated in right of payment to
      the
      Notes or a Guarantee, such new Debt, by its terms or by the terms of any
      agreement or instrument to which such new Debt is issued or remains outstanding,
      is expressly made subordinate in right of payment to the Notes or such Guarantee
      at least to the extent that the Debt to be Refinanced is subordinated to the
      Notes or the Guarantee;

     

    provided,
      however,
      that
      Permitted Refinancing Debt shall not include the Debt of any Subsidiary that
      is
      not a Guarantor, if such Debt is used to Refinance Debt of the Company or a
      Subsidiary.

     

    “Person”
means
      a
      corporation, an association, a partnership, a limited liability company, an
      individual, a joint venture, a joint stock company, a trust, an unincorporated
      organization or a government or an agency or a political subdivision
      thereof.

     

    “PRC”
means
      the People’s Republic of China, exclusive of Taiwan, Macau and Hong
      Kong.

     

    “Predecessor
      Note” of
      any
      particular Note means every previous Note evidencing all or a portion of the
      same Debt as that evidenced by such particular Note; and any Note authenticated
      and delivered under Section
      2.06
      in lieu
      of a lost, destroyed or stolen Note shall be deemed to evidence the same Debt
      as
      the lost, destroyed or stolen Note.

     

    “Preferred
      Stock”
means
      any Capital Stock of a Person, however designated, which entitles the holder
      thereof to a preference with respect to the payment of dividends, or as to
      the
      distribution of assets upon any voluntary or involuntary liquidation or
      dissolution of such Person, over shares of any other class of Capital Stock
      issued by such Person.

     

    “Preferred
      Stock Dividends”
means
      all dividends with respect to Preferred Stock of the Company’s Subsidiaries held
      by Persons other than the Company or any of its Wholly Owned Subsidiaries.
      The
      amount of any such dividend shall be equal to the quotient of such dividend
      divided by the difference between one and the maximum statutory federal income
      rate (expressed as a decimal number between 1 and 0) then applicable to the
      issuer of such Preferred Stock.

     

    “pro
      forma”
means,
      with respect to any calculation made or required to be made pursuant to the
      terms hereof, a calculation performed in accordance with Article 11 of
      Regulation S-X promulgated under the Securities Act, as interpreted in good
      faith by the Board of Directors after consultation with the independent
      certified public accountants of the Company, or otherwise a calculation made
      in
      good faith by the Board of Directors after consultation with the independent
      certified public accountants of the Company, as the case may be.

     

    
      
        
        

      

      
        24

        
          

        

      

      
        
        

      

    

    “Property”
means,
      with respect to any Person, any interest of such Person in any kind of property
      or asset, whether real, personal or mixed, or tangible or intangible, including
      intellectual property rights and Capital Stock in, and other securities of,
      any
      other Person. For purposes of any calculation required pursuant to this
      Indenture, the value of any Property shall be its Fair Market
      Value.

     

    “Redemption
      Price”
means
      the amount calculated in accordance with the following formula, rounded (if
      necessary) to two decimal places with 0.005 being rounded upwards:

     

    
      	 	
              Redemption
                Price = I x (1 + r/4)d/90

               

            
	 	
              Where:

               

            	 	 
	 	
              I

               

            	
              =

               

            	
              Issue
                price (100% of principal amount) of the Notes;

               

            
	 	
              r

               

            	
              =

               

            	
              15.0%
                expressed as a decimal; and

               

            
	 	
              d

               

            	
              =

               

            	
              number
                of days from and including the Issue Date to but excluding, the date
                for
                redemption or repurchase, calculated on the basis of a 360-day year
                consisting of 12 months of 30 days each, and in the case of an incomplete
                month, the actual number of days elapsed.

               

            

    

    “Refinance”
means,
      in respect of any Debt, to refinance, extend, renew, refund or Repay (in whole
      or in part), or to issue other Debt, in exchange or replacement for (in whole
      or
      in part), such Debt. “Refinanced” and “Refinancing” shall have correlative
      meanings.

     

    “Related
      Business”
means
      the manufacturing, distributing, installing and maintaining security,
      surveillance, fire and alarm products and systems, and other products or systems
      in the similar nature.

     

    “Repay”
means,
      in respect of any Debt, to repay, prepay, repurchase, redeem, legally defease
      or
      otherwise retire such Debt. “Repayment” and “Repaid” shall have correlative
      meanings. For purposes of Section
      4.12
      , the
      definitions of “Fixed Charge Coverage Ratio” and “Leverage Ratio,” Debt shall be
      considered to have been Repaid only to the extent the related loan commitment,
      if any, shall have been permanently reduced in connection therewith.

     

    “Repurchase
      Amount”
means,
      with respect to any Note, the Redemption Price plus
      any
      accrued and unpaid Interest on such Note (including post-petition interest
      in
      any proceeding under any Bankruptcy Law) and interest accrued on overdue
      principal (and, to the extent lawful, on overdue installments of interest)
      and
      premium, if any, at a rate that is 5% per annum in excess of the rate of
      Interest then in effect.

     

    “Responsible
      Officer”
shall
      mean, when used with respect to the Trustee, any officer within the corporate
      trust department of the Trustee with direct responsibility for the
      administration of this Indenture.

     

    
      
        
        

      

      
        25

        
          

        

      

      
        
        

      

    

    “Restricted
      Payment”
      means:

     

    (a)
       any
      dividend or distribution (whether made in cash, securities or other Property)
      declared or paid on or with respect to any shares of Capital Stock of the
      Company or any of its Subsidiaries (including any payment in connection with
      any
      merger or consolidation with or into the Company or any of its Subsidiaries),
      except for any dividend or distribution that is made solely to the Company
      or
      any of its Subsidiaries (and, if such Subsidiary is not a Wholly Owned
      Subsidiary, to the other shareholders of such Subsidiary on a pro
      rata basis
      or
      on a basis that results in the receipt by the Company or any of its Subsidiaries
      of dividends or distributions of greater value than it would receive on a
pro
      rata basis)
      or
      any dividend or distribution payable solely in shares of Capital Stock (other
      than Disqualified Stock) of the Company; 

     

    (b)
       the
      purchase, repurchase, redemption, acquisition or retirement for value of any
      Capital Stock of the Company or any of its Subsidiaries (other than from the
      Company or any of its Subsidiaries) or any securities exchangeable for or
      convertible into any such Capital Stock, including the exercise of any option
      to
      exchange any Capital Stock (other than for or into Capital Stock of the Company
      that is not Disqualified Stock); 

     

    (c)
       the
      purchase, repurchase, redemption, acquisition or retirement for value, prior
      to
      the date for any scheduled maturity, sinking fund or amortization or other
      installment payment, of any Subordinated Obligation (other than the purchase,
      repurchase or other acquisition of any Subordinated Obligation purchased in
      anticipation of satisfying a scheduled maturity, sinking fund or amortization
      or
      other installment obligation, in each case due within one year of the date
      of
      acquisition); or

     

    (d)
       any
      Investment (other than Permitted Investments) in any Person.

     

    “RMB”
means
      the lawful currency of the PRC.

     

    “S&P”
means
      Standard & Poor’s Ratings Services, a division of McGraw Hill, Inc., or any
      successor to the rating agency business thereof.

     

    “Safetech” means
      China Safetech Holdings Limited, a wholly-owned subsidiary of the Company,
      incorporated under the laws of British Virgin Islands.

     

    “Sale
      and Leaseback Transaction”
means
      any direct or indirect arrangement relating to Property now owned or hereafter
      acquired whereby the Company or any of its Subsidiaries transfers such Property
      to another Person and the Company or any of its Subsidiaries leases it from
      such
      Person. 

     

    “Securities
      Act”
means
      the U.S. Securities Act of 1933, as amended, and the rules and regulations
      promulgated thereunder, as in effect from time to time.

     

    “Senior
      Debt”
of
      the
      Company means:

     

    (a)
       all
      obligations consisting of the principal, premium, if any, and accrued and unpaid
      interest (including interest accruing on or after the filing of any petition
      in
      bankruptcy or for reorganization relating to the Company whether or not such
      post-filing interest is allowed in such proceeding) in respect of:

     

    
      
        
        

      

      
        26

        
          

        

      

      
        
        

      

    

    (1)
      Debt
      of the Company for borrowed money, and

     

    (2)
      Debt
      of the Company evidenced by notes, debentures, bonds or other similar
      instruments permitted under this Indenture for the payment of which the Company
      is responsible or liable; 

     

    (b)
       all
      Capital Lease Obligations of the Company and all Attributable Debt in respect
      of
      Sale and Leaseback Transactions entered into by the Company; 

     

    (c)
       all
      obligations of the Company 

     

    (1)
      for
      the reimbursement of any obligor on any letter of credit, banker’s acceptance or
      similar credit transaction, 

     

    (2)
      under
      Hedging Obligations, or 

     

    (3)
      issued or assumed as the deferred purchase price of Property and all conditional
      sale obligations of the Company and all obligations under any title retention
      agreement permitted under this Indenture; and

     

    (d)
       all
      obligations of other Persons of the type referred to in clauses (a), (b) and
      (c)
      for the payment of which the Company is responsible or liable as
      Guarantor;

     

     provided,
      however,
      that
      Senior Debt shall not include:

     

    (A)
       Debt
      of
      the Company that is by its terms subordinate in right of payment to the
      Notes,
      including any
      Subordinated Obligations; 

     

    (B)
       any
      Debt
      Incurred in violation of the provisions of this Indenture; 

     

    (C)
       accounts
      payable or any other obligations of the Company to trade creditors created
      or
      assumed by the Company in the ordinary course of business in connection with
      the
      obtaining of materials or services (including Guarantees thereof or instruments
      evidencing such liabilities); 

     

    (D)
       any
      liability for U.S. federal, state, national, provincial, local or other taxes
      owed or owing by the Company; 

     

    (E)
       any
      obligation of the Company to any of its Subsidiaries; or

     

    (F)
       any
      obligations with respect to any Capital Stock of the Company. 

     

    To
      the
      extent that any payment of Senior Debt (whether by or on behalf of the Company
      as proceeds of security or enforcement or any right of setoff or otherwise)
      is
      declared to be fraudulent or preferential, set aside or required to be paid
      to a
      trustee, receiver or other similar party under any bankruptcy, insolvency,
      receivership or similar law, then if such payment is recovered by, or paid
      over
      to, such trustee, receiver or other similar party, the Senior Debt or part
      thereof originally intended to be satisfied shall be deemed to be reinstated
      and
      outstanding as if such payment had not occurred. 

     

    
      
        
        

      

      
        27

        
          

        

      

      
        
        

      

    

    “Senior
      Debt” of any Guarantor has a correlative meaning.

     

    “Shareholders”
means
      Mr. Tu Guo Shen, Ms. Li Zhi Qun, and Whitehorse Technology Limited, a British
      Virgin Islands company wholly-owned by Mr. Tu Guo Shen.

     

    “Significant
      Subsidiary”
means
      any Subsidiary that would be a “significant subsidiary” of the Company within
      the meaning of Rule 1-02 under Regulation S-X promulgated by the
      Commission.

     

    “Stated
      Maturity”
means,
      with respect to any installment of interest or principal on any series of Debt
      (including, without limitation, a scheduled repayment or a scheduled sinking
      fund payment), the date on which the payment of interest or principal was
      scheduled to be paid in the original documentation governing such Debt, and
      will
      not include any contingent obligations to repay, redeem or repurchase any such
      interest or principal prior to the date originally scheduled for the payment
      hereof.

     

    “Subordinated
      Obligation”
means
      any Debt of the Company or any Guarantor (whether outstanding on the Issue
      Date
      or thereafter Incurred) that is subordinate or junior in right of payment to
      the
      Notes or the applicable Guarantee pursuant to a written agreement to that
      effect. 

     

    “Subsidiary,”
with
      respect to any Person, means (i) any corporation of which the outstanding
      Capital Stock having a majority of the votes entitled to be cast in the election
      of directors under ordinary circumstances shall at the time be owned, directly
      or indirectly, through one or more intermediaries, by such Person or (ii) any
      other Person of which a majority of the voting interest under ordinary
      circumstances is at the time, directly or indirectly, through one or more
      intermediaries, owned by such Person.

     

    “Surviving
      Person”
means
      the surviving Person formed by a merger, consolidation or amalgamation and,
      for
      purposes of Section
      5.01,
      a
      Person to whom all or substantially all of the Property of the Company or a
      Guarantor is sold, transferred, assigned, leased, conveyed or otherwise
      disposed. 

     

    “Tax
      Original Issue Discount”
means
      the amount of ordinary interest income on a Note that must be accrued as
      original issue discount for United States federal income tax
      purposes.

     

    “Termination
      of Trading”
will
      be
      deemed to have occurred if, (i) the Common Stock (or other common stock,
      depositary receipts, ordinary shares or other certificates representing common
      equity interests into which the Notes are then convertible) is neither listed
      for trading on a United States national securities exchange, listed for trading
      on a United States national or regional securities exchange nor approved for
      trading on any of the Nasdaq’s Capital Market, Global Market, Global Select
      Market or the OTC Bulletin Board, (ii) trading in the Common Stock on any such
      exchange or market has been suspended for thirty or more consecutive Trading
      Days, or (iii) a transaction or event (whether by means of an exchange offer,
      liquidation, tender offer, consolidation, merger, combination, reclassification,
      recapitalization or otherwise) occurs in connection with which all or
      substantially all of the Common Stock is exchanged for, converted into, or
      acquired for, consideration which is not all or substantially all common stock,
      depositary receipts, ordinary shares or other certificates representing common
      equity interests that are (or, upon consummation of or immediately following
      such transaction or event, will be) listed on a United States national
      securities exchange or approved (or, upon consummation of or immediately
      following such transaction or event, will be approved) for quotation on the
      Nasdaq Capital Market, Nasdaq Global Market, Nasdaq Global Select Market, the
      OTC Bulletin Board or any similar United States system of automated
      dissemination of quotations of securities prices.

     

    
      
        
        

      

      
        28

        
          

        

      

      
        
        

      

    

    “Transaction
      Document”
means
      this Indenture, the Notes, the Guarantees, Notes Purchase Agreement, the
      Investor Rights Agreement, certain Non-Competition Covenant and Agreement dated
      the Issue Date by and between Citadel Equity Fund Ltd. and Mr. Tu Guo Shen,
      or
      any of them as the context may so require.

     

    “Trading
      Day”
shall
      mean (x) if the applicable security is quoted on the Nasdaq National Market,
      a
      day on which trades may be made thereon, (y) if the applicable security is
      listed or admitted for trading on the American Stock Exchange, New York Stock
      Exchange or another national securities exchange, a day on which the American
      Stock Exchange, New York Stock Exchange or another national securities exchange
      is open for business, or (z) if the applicable security is not so listed,
      admitted for trading or quoted, any day other than a Saturday or Sunday or
      a day
      on which banking institutions in the State of New York are authorized or
      obligated by law or executive order to close.

     

    “Trading
      Market”
means
      the following markets or exchanges on which the Common Stock is listed or quoted
      for trading on the date in question: the Nasdaq Capital Market, the American
      Stock Exchange, the New York Stock Exchange, the Nasdaq Global Market, the
      Nasdaq Global Select Market or the OTC Bulletin Board.

     

    “Trading
      Reference VWAP”
means,
      as of February 16 or August 16 of each year, the simple arithmetic average
      of
      the VWAPs as shown on Bloomberg for the forty-five Trading Days preceding such
      February 16 or August 16, as the case may be, as proportionally adjusted for
      any
      subdivision, consolidation, reclassification or similar event of the Shares;
      provided
      that if
      the actual Trading Reference VWAP be less than $9.00, the Trading Reference
      VWAP
      shall be deemed to be exactly $9.00.

     

    “Trustee”
means
      the Person named as the “Trustee” in the first paragraph of this instrument
      until a successor Trustee shall have become such pursuant to the applicable
      provisions of this Indenture, and thereafter “Trustee” shall mean such successor
      Trustee.

     

    “U.S.
      Government Securities”
means
      direct obligations (or certificates representing an ownership interest in such
      obligations) of the United States of America (including any agency or
      instrumentality thereof) for the payment of which the full faith and credit
      of
      the United States of America are pledged and which are not callable or
      redeemable at the issuer’s option.

     

    “Voting
      Stock”
of
      any
      Person means all classes of Capital Stock or other interests (including
      partnership interests) of such Person then outstanding and normally entitled
      (without regard to the occurrence of any contingency) to vote in the election
      of
      directors, managers or trustees thereof. 

     

    
      
        
        

      

      
        29

        
          

        

      

      
        
        

      

    

    “VWAP”
means,
      for any date, the price determined by the first of the following clauses that
      applies: (a) if the Common Stock is then listed or quoted on a Trading Market,
      the daily volume weighted average price of the Common Stock for such date (or
      the nearest preceding date) on the Trading Market on which the Common Stock
      is
      then listed or quoted for trading as reported by Bloomberg Financial L.P.
      through its “Volume at Price” functions (based on a Trading Day from 9:30 a.m.
      (New York City time) to 4:02 p.m. (New York City time); (b) if the OTC Bulletin
      Board is not a Trading Market, the volume weighted average price of the Common
      Stock for such date (or the nearest preceding date) on the OTC Bulletin Board;
      or (c) if the Common Stock is not then quoted for trading on the OTC Bulletin
      Board and if prices for the Common Stock are then reported in the “Pink Sheets”
published by Pink Sheets, LLC (or a similar organization or agency succeeding
      to
      its functions of reporting prices), the average of the highest closing bid
      price
      and lowest closing ask price of any of the market makers for such security
      as
      reported, and in each of the foregoing clauses ignoring any block trade (which
      for purposes of this definition means any transfer of more than 100,000 shares).
      If the VWAP cannot be calculated for such security on such date on any of the
      foregoing bases, the VWAP
      of such
      security on such date shall be the fair market value as mutually determined
      by
      the Company and the Noteholders of at least a majority in aggregate principal
      amount of the Notes then outstanding.

     

    “Wholly
      Owned Subsidiary”
means,
      at any time, a Subsidiary all the Voting Stock of which (except directors’
qualifying shares) is at such time owned, directly or indirectly, by the Company
      and its other Wholly Owned Subsidiaries.

     

    Section
      1.02.   Other
      Definitions

    

      
        	 	 	
                Defined
                  in

              
	
                Term

              	 	
                 Section

              
	
                “Adjustment
                  Event”

              	 	
                14.05(m)

              
	
                “Affiliate
                  Transaction”

              	 	
                4.14

              
	
                “Allocable
                  Excess Proceeds”

              	 	
                4.12

              
	
                “Asset
                  Sale Offer”

              	 	
                4.12

              
	
                “Authentication
                  Order”

              	 	
                2.04

              
	
                “Benefited
                  Party”

              	 	
                9.01

              
	
                “Change
                  of Control Offer”

              	 	
                4.17

              
	
                “Conversion
                  Date”

              	 	
                14.02

              
	
                “Conversion
                  Notice”

              	 	
                14.02

              
	
                “Conversion
                  Rate”

              	 	
                14.04

              
	
                “Current
                  Market Price”

              	 	
                14.05

              
	
                “Determination
                  Date”

              	 	
                14.05(m)

              
	
                “Event
                  of Default”

              	 	
                6.01

              
	
                “Excess
                  Proceeds”

              	 	
                4.12

              
	
                “Expiration
                  Time”

              	 	
                14.05(f)

              
	
                “Future
                  Guarantor”

              	 	
                9.03

              
	
                “Interest
                  Payment Date”

              	 	
                2.03

              
	
                “Non-electing
                  share”

              	 	
                14.06

              
	
                “Offer
                  Amount”

              	 	
                3.02(b)

              
	
                “Offer
                  Period”

              	 	
                3.02(c)

              
	
                “Offer
                  to Purchase”

              	 	
                3.02(a)

              

      

       

      
        
          
          

        

        
          30

          
            

          

        

        
          
          

        

      

      
        	
                “Paying
                  Agent”

              	 	
                4.02

              
	
                “Purchase
                  Date”

              	 	
                3.02(c)

              
	
                “Purchase
                  Price”

              	 	
                3.02(b)

              
	
                “Purchased
                  Shares”

              	 	
                14.05(f)

              
	
                “Record
                  Date”

              	 	
                14.05(i)

              
	
                “Registrar”

              	 	
                4.02

              
	
                “Securities”

              	 	
                14.05(d)

              
	
                “Security
                  Register”

              	 	
                4.02

              
	
                “Termination
                  of Trading
                  Offer”

              	 	
                4.23

              
	
                “Trading
                  Day”

              	 	
                14.05(i)

              
	
                “Trigger
                  Event”

              	 	
                14.05(d)

              
	
                “2010
                  Mandatory Conversion Trigger”
                  

              	 	
                14.07

              
	
                “2011
                  Mandatory Conversion Trigger”
                  

              	 	
                14.07

              
	
                “45-day
                  VWAP” 

              	 	
                14.07

              

      

    Section
      1.03.   Rules
      of Construction.

     

    (a) Unless
      the context otherwise requires:

     

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

     

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

     

    (iii) “or”
is
      not exclusive;

     

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

     

    (v) all
      references in this instrument to “Articles,” “Sections” and other subdivisions
      are to the designated Articles, Sections and subdivisions of this instrument
      as
      originally executed;

     

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

     

    (vii) “including”
      means “including without limitation;”

     

    (viii) provisions
      apply to successive events and transactions; 

     

    (ix) “$”
means
      the lawful currency of the United States of America; and

     

    (x) references
      to sections of or rules under the Securities Act or the Exchange Act shall
      be
      deemed to include substitute, replacement or successor sections or rules adopted
      by the Commission from time to time thereunder.

     

    
      
        
        

      

      
        31

        
          

        

      

      
        
        

      

    

    ARTICLE
      2

     

    ISSUE,
      DESCRIPTION, EXECUTION, REGISTRATION AND EXCHANGE OF NOTES

     

    Section
      2.01.   Designation
      Amount and Issue of Notes.
      

     

    The
      Notes
      shall be designated as “1.0% Guaranteed Senior Unsecured Convertible Notes due
      2012”. Notes not to exceed the aggregate principal amount of $60,000,000 (except
      pursuant to Sections
      2.05
      and
2.06
      hereof)
      upon the execution of this Indenture, or from time to time thereafter, may
      be
      executed by the Company and delivered to the Trustee for authentication, and
      the
      Trustee shall thereupon authenticate and deliver said Notes to or upon the
      written order of the Company, signed by its Chairman of the Board, Chief
      Executive Officer, President or any Vice President (whether or not designated
      by
      a number or numbers or word or words added before or after the title “Vice
      President”), the Treasurer or any Assistant Treasurer or the Secretary or
      Assistant Secretary, without any further action by the Company hereunder.

     

    Section
      2.02.   Form
      of Notes.
      

     

    (a) The
      Notes
      and the Trustee’s certificate of authentication to be borne by such Notes shall
      be substantially in the form set forth in Exhibit
      A.
      The
      terms and provisions contained in the form of Note attached as Exhibit
      A
      hereto
      shall constitute, and are hereby expressly made, a part of this Indenture and,
      to the extent applicable, the Company, the Guarantors and the Trustee, by their
      execution and delivery of this Indenture, expressly agree to such terms and
      provisions and to be bound thereby.

     

    (b) Any
      of
      the Notes may have such letters, numbers or other marks of identification and
      such notations, legends, endorsements or changes as the officers executing
      the
      same may approve (execution thereof to be conclusive evidence of such approval)
      and as are not inconsistent with the provisions of this Indenture, or as may
      be
      required by the Custodian, the Common Depositary or as may be required to comply
      with any applicable law or with any rule or regulation made pursuant thereto
      or
      with any rule or regulation of any securities exchange or automated quotation
      system on which the Notes may be listed, or to conform to usage, or to indicate
      any special limitations or restrictions to which any particular Notes are
      subject.

     

    (c) So
      long
      as the Notes are eligible for book-entry settlement with the Common Depositary,
      or unless otherwise required by law, or otherwise contemplated by Section
      2.05(a),
      all of
      the Notes will be represented by one or more Notes in global form registered
      in
      the name of the Common Depositary or the nominee of the Common Depositary.
      The
      transfer and exchange of beneficial interests in any such Global Note shall
      be
      effected through the Common Depositary in accordance with this Indenture and
      the
      applicable procedures of the Common Depositary. Except as provided in
Section
      2.05(a),
      beneficial owners of a Global Note shall not be entitled to have certificates
      registered in their names, will not receive or be entitled to receive physical
      delivery of certificates in definitive form and will not be considered holders
      of such Global Note.

     

    (d) Any
      Global Note shall represent such of the outstanding Notes as shall be specified
      therein and shall provide that it shall represent the aggregate amount of
      outstanding Notes from time to time endorsed thereon and that the aggregate
      amount of outstanding Notes represented thereby may from time to time be
      increased or reduced to reflect redemptions, repurchases, conversions, transfers
      or exchanges permitted hereby. Any endorsement of a Global Note to reflect
      the
      amount of any increase or decrease in the amount of outstanding Notes
      represented thereby shall be made by the Trustee or the Custodian, at the
      direction of the Trustee, in such manner and upon instructions given by the
      holder of such Notes in accordance with this Indenture. Payment of principal
      of,
      premium, if any, and Interest on any Global Note shall be made to the holder
      of
      such Note.

     

    
      
        
        

      

      
        32

        
          

        

      

      
        
        

      

    

    (e) This
      Section
      2.02(e)
      shall
      apply only to Global Notes deposited with the Trustee, as custodian for the
      Common Depositary. Participants shall have no rights under this Indenture or
      any
      Global Note with respect to any Global Note held on their behalf by the Common
      Depositary or by the Trustee as custodian for the Common Depositary, and the
      Common Depositary shall be treated by the Company, the Trustee and any agent
      of
      the Company or the Trustee as the absolute owner of such Global Note for all
      purposes whatsoever. Notwithstanding the foregoing, nothing herein shall prevent
      the Company, the Trustee or any agent of the Company or the Trustee from giving
      effect to any written certification, proxy or other authorization furnished
      by
      the Common Depositary or impair, as between the Common Depositary and its
      Participants, the Applicable Procedures or the operation of customary practices
      of the Common Depositary governing the exercise of the rights of a holder of
      a
      beneficial interest in any Global Note.

     

    The
      provisions of the “Terms and Conditions Governing Use of Euroclear” and the
“General Terms and Conditions of Clearstream” and “Customer Handbook” of
      Clearstream shall be applicable to transfers of beneficial interests in Global
      Notes that are held by Participants through Euroclear or
      Clearstream.

     

    The
      Company shall exchange Global Notes for Definitive Notes if: (1) at any time
      either Euroclear or Clearstream or any alternative clearing agency on behalf
      of
      which the Notes evidenced by the Global Note may be held is closed for business
      for a continuous period of 14 days (other than reason of holidays, statutory
      or
      otherwise) or announces an intention permanently to cease business or does
      in
      fact do so, and, in either case, the Company shall not have appointed a
      successor Common Depositary within 90 days after the Company receives such
      notice or becomes aware of such ineligibility, or (2) upon written request
      of a
      holder or the Trustee if a Default or Event of Default shall have occurred
      and
      be continuing. 

     

    Upon
      the
      occurrence of any of the events set forth in clauses (1) or (2) of the
      immediately preceding paragraph, the Company shall execute, and, upon receipt
      of
      an Authentication Order in accordance with Section
      2.04
      hereof,
      the Trustee shall authenticate and deliver, Definitive Notes, in authorized
      denominations, in an aggregate principal amount equal to the principal amount
      of
      the Global Notes in exchange for such Global Notes.

     

    Upon
      the
      exchange of a Global Note for Definitive Notes, such Global Note shall be
      cancelled by the Trustee or an agent of the Company or the Trustee. Definitive
      Notes issued in exchange for a Global Note pursuant to this Section shall be
      registered in such names and in such authorized denominations as the Common
      Depositary, pursuant to instructions from its Participants or its Applicable
      Procedures, shall instruct the Trustee or an agent of the Company or the Trustee
      in writing. The Trustee or such agent shall deliver such Definitive Notes to
      or
      as directed by the Persons in whose names such Definitive Notes are so
      registered or to the Common Depositary.

     

    
      
        
        

      

      
        33

        
          

        

      

      
        
        

      

    

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

     

    The
      Notes
      shall be issuable in registered form without coupons in denominations of
      $100,000 principal amount and integral multiples thereof. Each Note shall be
      dated the date of its authentication and shall bear Interest from the date
      specified on the face of the form of Note attached as Exhibit
      A
      hereto.
      Interest on the Notes shall be computed on the basis of a 360-day year comprised
      of twelve 30-day months.

     

    The
      Person in whose name any Note (or its Predecessor Note) is registered on the
      Security Register at the close of business on any record date with respect
      to
      any interest payment date shall be entitled to receive the Interest payable
      on
      such interest payment date, except that the Interest payable upon redemption
      or
      repurchase will be payable to the Person to whom principal is payable pursuant
      to such redemption or repurchase (unless the redemption date or the repurchase
      date, as the case may be, falls after a record date and on or prior to the
      corresponding interest payment date, in which case accrued and unpaid Interest
      to, but excluding, such redemption date or repurchase date shall be payable
      on
      such interest payment date to the holders of such Notes registered as such
      on
      the applicable record date).

     

    Notwithstanding
      the foregoing, if any Note (or portion thereof) is converted into Common Stock
      during the period after a record date for the payment of Interest to, but
      excluding, the next succeeding interest payment date and such Note (or portion
      thereof) has been called or tendered for redemption on a redemption date which
      occurs during such period, the Company shall not be required to pay interest
      on
      such interest payment date in respect of any such Note (or portion thereof).
      Interest shall be payable at the office of the Company maintained by the Company
      for such purposes in the City of New York, which shall initially be an office
      or
      agency of the Trustee. The Company shall pay Interest (i) on any Notes in
      certificated form by (x) check mailed to the address of the Person entitled
      thereto as it appears in the Security Register (or upon written notice, by
      wire
      transfer in immediately available funds, if such Person is entitled to Interest
      on aggregate principal in excess of $1 million) or (y) by transfer to an account
      maintained by such person in the City of New York or
      (ii)
      on any Global Note by wire transfer of immediately available funds to the
      account of the Common Depositary or its nominee. The term “record date” with
      respect to any interest payment date shall mean the February 2 or August 2
      preceding the applicable February 16 or August 16 interest payment date (each,
      an “Interest
      Payment Date”),
      respectively.

     

    Section
      2.04.   Execution
      of Notes.
      

     

    The
      Notes
      shall be signed in the name and on behalf of the Company by the manual or
      facsimile signature of its Chairman of the Board, Chief Executive Officer,
      President or any Vice President (whether or not designated by a number or
      numbers or word or words added before or after the title “Vice President”) and
      attested by the manual or facsimile signature of its Secretary or any of its
      Assistant Secretaries or its Treasurer or any of its Assistant Treasurers (which
      may be printed, engraved or otherwise reproduced thereon, by facsimile or
      otherwise). Only such Notes as shall bear thereon a certificate of
      authentication substantially in the form set forth on the form of Note attached
      as Exhibit
      A
      hereto upon
      a
      written order of the Company signed by an Officer (an “Authentication
      Order”),
      manually executed by the Trustee (or an authenticating agent appointed by the
      Trustee as provided by Section
      15.10),
      shall
      be entitled to the benefits of this Indenture or be valid or obligatory for
      any
      purpose. Such certificate by the Trustee (or such an authenticating agent)
      upon
      any Note executed by the Company shall be conclusive evidence that the Note
      so
      authenticated has been duly authenticated and delivered hereunder and that
      the
      holder is entitled to the benefits of this Indenture.

     

    
      
        
        

      

      
        34

        
          

        

      

      
        
        

      

    

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

     

    Section
      2.05.   Exchange
      and Registration of Transfer of Notes; Restrictions on Transfer.

     

    (a) As
      provided herein, interests in a Global Note will be exchanged, upon 45 days’
notice by a holder of an interest in such Global Note for Definitive Notes.
      Each
      Global Note shall be deposited with the Common Depositary, which shall hold
      such
      Global Note in safe custody for the account of Euroclear and/or Clearstream
      and
      instruct Euroclear or Clearstream or both of them, as the case may be, to credit
      the principal amounts of the Notes represented by such Global Note to the
      holder’s distribution account with Euroclear or Clearstream. Each relevant
      Global Note shall be exchangeable in whole for an interest, equal to the
      principal amount of such Global Note being exchanged, for Definitive Notes
      in
      the same principal amount, upon request of Euroclear or Clearstream to the
      Registrar, but only upon delivery by Euroclear or Clearstream, acting on behalf
      of the beneficial owners of such interests, to the Registrar at its principal
      office in the City of New York, of certificates substantially in the form of
      Exhibit
      C
      hereto.
      The delivery to the Registrar of any certificate in the form referred to above
      may be relied upon by the Company, the Trustee and the Registrar as conclusive
      evidence that related certificates have been delivered to Euroclear or
      Clearstream as contemplated by the terms of this Section.

     

    (b) In
      accordance with the terms of a Global Note and this Indenture, the Registrar
      shall deliver at the cost of the Company, upon not less than 45 days’ notice to
      the Registrar by Euroclear or Clearstream, the relevant Definitive Notes in
      exchange for interests in such Global Note. For this purpose, the Registrar
      is
      authorized and it shall (A) authenticate each such Definitive Note and (B)
      deliver each such Definitive Note to or to the order of Euroclear or
      Clearstream, in exchange for interests in such Global Note. The Registrar shall
      promptly notify the Company upon receipt of a request for issue of Definitive
      Notes the aggregate principal amount of the relevant Global Note to be exchanged
      in connection therewith. The Company undertakes to deliver to, or to the order
      of, the Registrar sufficient numbers of duly executed Definitive Notes to enable
      the Registrar to comply with its obligations under this Section
      2.05(b).
      Such
      exchange shall be made free of charge to the holder and the beneficial owners
      of
      the relevant Global Note and to the holders of the Definitive Notes issued
      in
      exchange as provided above, except that a Person receiving Definitive Notes
      must
      bear the cost of insurance, postage, transportation and the like in the event
      that such Person does not receive such Definitive Notes in person at the offices
      of a Registrar. Notwithstanding the above, interests in a Global Note shall
      be
      exchangeable in whole (but not in part) at the cost of the Company for
      Definitive Notes under the conditions described in Section
      2.02(e).

     

    
      
        
        

      

      
        35

        
          

        

      

      
        
        

      

    

    (c) Upon
      any
      exchange of an interest in a Global Note for Definitive Notes, the relevant
      Global Note shall be endorsed by the Trustee or the Registrar to reflect the
      reduction of its principal amount by the aggregate principal amount so
      exchanged. Until exchanged in full, the holder of any interest in any Global
      Note shall in all respects be entitled to the same benefits under this Indenture
      as Definitive Notes authenticated and delivered hereunder. Once exchanged in
      full, a Global Note shall be canceled and disposed of by the Trustee in
      accordance with its customary procedures and a certificate of disposition will
      be sent to the Company.

     

    (d) The
      Trustee or the Registrar shall cause all Global Notes and Definitive Notes
      delivered to it and held by it hereunder to be maintained in safe custody in
      accordance with this Section.

     

    (e) The
      Security Register shall be in written form in the English language and shall
      include a record of the certificate number of each Note that has been issued,
      and shall show the amount of such Notes, the date of issue, all subsequent
      transfers and changes in ownership in respect thereof and the names, tax
      identifying numbers (if relevant to a specific holder), addresses of the holders
      of the Notes and any payment instructions with respect thereto (if different
      from a holder’s registered address).

     

    (f) The
      Registrar shall at all reasonable times during office hours make the Security
      Register available to the Trustee, the Paying Agent, the Company and the holders
      of such Notes or any person authorized by the Company in writing for inspection
      and for taking of copies thereof or extracts therefrom, and at the expense
      of
      the Company, the Registrar shall deliver to such persons all lists of holders
      of
      such Notes, their addresses, amounts of such holdings and other details as
      they
      may request.

     

    (g) The
      Registrar shall handle all requests for the registration of transfer, or
      exchange, repurchase or conversion, of Notes and receive certificates for the
      Notes deposited with the transfer agent for transfer, or exchange, repurchase
      or
      conversion, and in doing so, shall ensure that every Note presented or
      surrendered for registration of transfer, or exchange, repurchase or conversion,
      (if so required by the Company, the Trustee, the Paying Agent or the Registrar)
      be duly endorsed by, or be accompanied by a written instrument or instruments
      of
      transfer (in form satisfactory to the Company and the Registrar) duly executed
      by the holder thereof or by such holder’s attorney duly authorized in
      writing.

     

    (h) Neither
      the Company nor the Trustee nor any Registrar shall be required to exchange
      or
      register a transfer of (a) any Notes or portions thereof surrendered for
      conversion pursuant to Article
      14
      or (b)
      any Notes or portions thereof tendered for purchase pursuant to Section
      3.02
      (and not
      withdrawn).

     

    (i) Until
      the
      expiration of the holding period applicable to sales thereof under Rule 144(k)
      under the Securities Act (or any successor provision), any certificate
      evidencing such Note (and all securities issued in exchange therefor or
      substitution thereof, other than Common Stock, if any, issued upon conversion
      thereof, which shall bear the legend set forth in Exhibit
      D,
      if
      applicable) shall bear a legend set forth in Exhibit
      A,
      unless
      such Note has been sold pursuant to a registration statement that has been
      declared effective under the Securities Act (and which continues to be effective
      at the time of such transfer) or pursuant to Rule 144 under the Securities
      Act
      or any similar provision then in force, or unless otherwise agreed by the
      Company in writing, with written notice thereof to the Trustee.

     

    
      
        
        

      

      
        36

        
          

        

      

      
        
        

      

    

    (j) Any
      stock
      certificate representing Common Stock issued upon conversion of such Note shall
      bear a legend substantially in the form of Exhibit
      D.

     

    (k) The
      Trustee and the Registrar shall be entitled to treat a telephone, telex or
      facsimile communication from a person purporting to be (and who the Trustee
      or
      the Registrar believe in good faith to be) the authorized representative of
      the
      Company, named in a list furnished to the Trustee and the Registrar from time
      to
      time, as sufficient instructions and authority of the Company for the Trustee
      and the Registrar to act in accordance with this Section.

     

    (l) Title
      to
      the Notes shall pass by delivery. However, title to Notes issued in the form
      of
      Global Notes held through Euroclear and Clearstream shall be transferable only
      in accordance with the rules and procedures of Euroclear and Clearstream, as
      appropriate.

     

    Section
      2.06.   Mutilated,
      Destroyed, Lost or Stolen Notes.
      

     

    In
      case
      any Note shall become mutilated or be destroyed, lost or stolen, the Company
      in
      its discretion may execute, and upon its written request the Trustee or an
      authenticating agent appointed by the Trustee shall authenticate and make
      available for delivery, a new Note, bearing a number not contemporaneously
      outstanding, in exchange and substitution for the mutilated Note, or in lieu
      of
      and in substitution for the Note so destroyed, lost or stolen. In every case,
      the applicant for a substituted Note shall furnish to the Company, to the
      Trustee and, if applicable, to such authenticating agent such security or
      indemnity as may be required by them to save each of them harmless for any
      loss,
      liability, cost or expense caused by or connected with such substitution, and,
      in every case of destruction, loss or theft, the applicant shall also furnish
      to
      the Company, to the Trustee and, if applicable, to such authenticating agent
      evidence to their satisfaction of the destruction, loss or theft of such Note
      and of the ownership thereof.

     

    Following
      receipt by the Trustee or such authenticating agent, as the case may be, of
      satisfactory security or indemnity and evidence, as described in the preceding
      paragraph, the Trustee or such authenticating agent may authenticate any such
      substituted Note and make available for delivery such Note. Upon the issuance
      of
      any substituted Note, the Company or the Trustee, as the case may be, may
      require the payment by the holder of a sum sufficient to cover any tax,
      assessment or other governmental charge that may be imposed in relation thereto
      and any other expenses connected therewith. In case any Note which has matured
      or is about to mature or has been called for redemption or has been tendered
      for
      repurchase upon a Termination of Trading (and not withdrawn) or is to be
      converted into Common Stock shall become mutilated or be destroyed, lost or
      stolen, the Company may, instead of issuing a substitute Note, pay or authorize
      the payment of or convert or authorize the conversion of the same (without
      surrender thereof except in the case of a mutilated Note), as the case may
      be,
      if the applicant for such payment or conversion shall furnish to the Company,
      to
      the Trustee and, if applicable, to such authenticating agent such security
      or
      indemnity as may be required by them to save each of them harmless for any
      loss,
      liability, cost or expense caused by or in connection with such substitution,
      and, in every case of destruction, loss or theft, the applicant shall also
      furnish to the Company, the Trustee and, if applicable, any paying agent or
      conversion agent evidence to their satisfaction of the destruction, loss or
      theft of such Note and of the ownership thereof.

     

    
      
        
        

      

      
        37

        
          

        

      

      
        
        

      

    

    Every
      substitute Note issued pursuant to the provisions of this Section by virtue
      of
      the fact that any Note is destroyed, lost or stolen shall constitute an
      additional contractual obligation of the Company, whether or not the destroyed,
      lost or stolen Note shall be found at any time, and shall be entitled to all
      the
      benefits of (but shall be subject to all the limitations set forth in) this
      Indenture equally and proportionately with any and all other Notes duly issued
      hereunder. If, after the delivery of such replacement Note, a protected
      purchaser of the original Note in lieu of which such replacement Note was issued
      presents for payment, registration or conversion of such original Note, the
      Trustee shall be entitled to recover such replacement Note from the Person
      to
      whom it was delivered or any Person taking therefrom, except a protected
      purchaser, and shall be entitled to recover upon the security or indemnity
      provided therefor to the extent of any loss, damage, cost or expense incurred
      by
      the Company, the Trustee and any authenticating agent in connection
      therewith.

     

    Section
      2.07.   Temporary
      Notes.
      

     

    Pending
      the preparation of Notes in certificated form, the Company may execute and
      the
      Trustee or an authenticating agent appointed by the Trustee shall, upon the
      written request of the Company, authenticate and deliver temporary Notes
      (printed or lithographed). Temporary Notes shall be issuable in any authorized
      denomination, and substantially in the form of the Notes in certificated form,
      but with such omissions, insertions and variations as may be appropriate for
      temporary Notes, all as may be determined by the Company. Every such temporary
      Note shall be executed by the Company and authenticated by the Trustee or such
      authenticating agent upon the same conditions and in substantially the same
      manner, and with the same effect, as the Notes in certificated form. Without
      unreasonable delay, the Company will execute and deliver to the Trustee or
      such
      authenticating agent Notes in certificated form and thereupon any or all
      temporary Notes may be surrendered in exchange therefor, at each office or
      agency maintained by the Company pursuant to Section
      4.02
      and the
      Trustee or such authenticating agent shall authenticate and make available
      for
      delivery in exchange for such temporary Notes an equal aggregate principal
      amount of Notes in certificated form. Such exchange shall be made by the Company
      at its own expense and without any charge therefor. Until so exchanged, the
      temporary Notes shall in all respects be entitled to the same benefits and
      subject to the same limitations under this Indenture as Notes in certificated
      form authenticated and delivered hereunder.

     

    Section
      2.08.   Cancellation
      of Notes.
      

     

    All
      Notes
      surrendered for the purpose of payment, redemption, repurchase, conversion,
      exchange or registration of transfer shall, if surrendered to the Company or
      any
      paying agent or any Registrar or any conversion agent, be surrendered to the
      Trustee and promptly canceled by it, or, if surrendered to the Trustee, shall
      be
      promptly canceled by it, and no Notes shall be issued in lieu thereof except
      as
      expressly permitted by any of the provisions of this Indenture. The Trustee
      shall dispose of such canceled Notes in accordance with its customary
      procedures. If the Company shall acquire any of the Notes, such acquisition
      shall not operate as a redemption, repurchase or satisfaction of the
      indebtedness represented by such Notes unless and until the same are delivered
      to the Trustee for cancellation.

     

    
      
        
        

      

      
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    Section
      2.09.   Defaulted
      Interest.
      

     

    If
      the
      Company defaults in a payment of interest on the Notes, it shall pay the
      defaulted interest in any lawful manner plus, to the extent lawful, interest
      payable on the defaulted interest, to the Persons who are holders on a
      subsequent special record date, in each case at the rate provided in the Notes
      and in Section
      4.01
      hereof.
      The Company shall notify the Trustee in writing of the amount of defaulted
      interest proposed to be paid on each Note and the date of the proposed payment.
      The Company shall fix or cause to be fixed each such special record date and
      payment date; provided
      that no
      such special record date shall be less than 10 days prior to the related
      Interest Payment Date for such defaulted interest. At least 15 days before
      the
      special record date, the Company (or, upon the written request of the Company,
      the Trustee in the name and at the expense of the Company) shall mail or cause
      to be mailed to holders a notice that states the special record date, the
      related Interest Payment Date and the amount of such interest to be
      paid.

     

    Section
      2.10.   ISIN
      Numbers.
      

     

    The
      Company in issuing the Notes may use ISIN numbers (if then generally in use),
      and, if so, the Trustee shall use ISIN numbers in notices of redemption or
      repurchases as a convenience to Noteholders; provided
      that any
      such notice may state that no representation is made as to the correctness
      of
      such numbers either as printed on the Notes or as contained in any notice of
      a
      redemption or a repurchase and that reliance may be placed only on the other
      identification numbers printed on the Notes, and any such redemption or
      repurchase shall not be affected by any defect in or omission of such numbers.
      The Company will promptly notify the Trustee in writing of any change in the
      ISIN numbers.

     

    ARTICLE
      3

     

    REDEMPTION
      AND REPURCHASE OF NOTES

     

    Section
      3.01.   Redemption
      at Maturity.
      

     

    Unless
      previously redeemed or converted or purchased and cancelled, the Company shall
      redeem the Notes at the Repurchase Amount on February 16, 2012.

     

    The
      Notes
      may not be redeemed at the election of the Company, in whole or in part at
      any
      time prior to February 16, 2012.

     

    Section
      3.02.  Offer
      to Purchase.

     

    (a) In
      the
      event that, pursuant to Section
      4.12,
      Section
      4.17
      or
Section
      4.23
      hereof,
      the Company shall be required to commence an Asset Sale Offer, a Change of
      Control Offer or a Termination of Trading Offer (each of the foregoing, an
      “Offer
      to Purchase”),
      respectively, it shall follow the procedures specified below.

     

    
      
        
        

      

      
        39

        
          

        

      

      
        
        

      

    

    (b) The
      Company shall commence the Offer to Purchase by sending, by first-class mail,
      with a copy to the Trustee, to each holder at such holder’s address appearing in
      the Security Register, a notice the terms of which shall govern the Offer to
      Purchase stating:

     

    (i) that
      the
      Offer to Purchase is being made pursuant to this Section and Section
      4.12,
      Section
      4.17
      or
Section
      4.23,
      as the
      case may be, and, in the case of a Change of Control Offer or Termination of
      Trading Offer, that such event has occurred, the circumstances and relevant
      facts regarding such event and that a Change of Control Offer or Termination
      of
      Trading Offer is being made pursuant to Section
      4.17
      or
Section
      4.23,
      respectively;

     

    (ii) the
      principal amount of Notes required to be purchased pursuant to Section
      4.12,
      Section
      4.17
      or
Section
      4.23,
      as the
      case may be (the “Offer
      Amount”),
      the
      purchase price set forth in Section
      4.12,
      Section
      4.17
      or
Section
      4.23,
      as
      applicable (the “Purchase
      Price”),
      the
      Offer Period and the Purchase Date (each as defined below);

     

    (iii) except
      as
      provided in clause (ix), that all Notes timely tendered and not withdrawn shall
      be accepted for payment;

     

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

     

    (v) that,
      unless the Company defaults in making such payment, any Note accepted for
      payment pursuant to the Offer to Purchase shall cease to accrue interest after
      the Purchase Date;

     

    (vi) that
      holders electing to have a Note purchased pursuant to an Offer to Purchase
      may
      elect to have Notes purchased in integral multiples of $100,000
      only;

     

    (vii) that
      holders electing to have a Note purchased pursuant to any Offer to Purchase
      shall be required to surrender the Note, with the form entitled “Purchase
      Notice” on the reverse of the Note completed, or transfer by book-entry
      transfer, to the Company, the Common Depositary, if appointed by the Company,
      or
      a Paying Agent at the address specified in the notice before the close of
      business on the third Business Day before the Purchase Date;

     

    (viii) that
      holders shall be entitled to withdraw their election if the Company, the Common
      Depositary or the Paying Agent, as the case may be, receives, not later than
      the
      expiration of the Offer Period, a telegram, facsimile transmission or letter
      setting forth the name of the holder, the principal amount of the Note (or
      portions thereof) the holder delivered for purchase and a statement that such
      holder is withdrawing his election to have such Note purchased;

     

    (ix) that,
      in
      the case of an Asset Sale Offer, if the aggregate principal amount of Notes
      surrendered by holders exceeds the Offer Amount, the Company shall select the
      Notes to be purchased on a pro
      rata
      basis
      (with such adjustments as may be deemed appropriate by the Company so that
      only
      Notes in denominations of $100,000 or integral multiples thereof shall be
      purchased); 

     

    
      
        
        

      

      
        40

        
          

        

      

      
        
        

      

    

    (x) that
      holders whose Notes were purchased in part shall be issued new Notes equal
      in
      principal amount to the unpurchased portion of the Notes surrendered (or
      transferred by book-entry transfer); and

     

    (xi) any
      other
      procedures the holders must follow in order to tender their Notes (or portions
      thereof) for payment and the procedures that holders must follow in order to
      withdraw an election to tender Notes (or portions thereof) for
      payment.

     

    (c) The
      Offer
      to Purchase shall remain open for a period of at least 30 days but no more
      than
      60 days following its commencement, except to the extent that a longer period
      is
      required by applicable law (the “Offer
      Period”).
      No
      later than five (5) Business Days (and in any event no later than the 60th
      day
      following any Change of Control or Termination of Trading) after the termination
      of the Offer Period (the “Purchase
      Date”),
      the
      Company shall purchase the Offer Amount or, if less than the Offer Amount has
      been tendered, all Notes tendered in response to the Offer to Purchase. Payment
      for any Notes so purchased shall be made in the same manner as interest payments
      are made. The Company shall publicly announce the results of the Offer to
      Purchase on the Purchase Date.

     

    (d) On
      or
      prior to the Purchase Date, the Company shall, to the extent
      lawful:

     

    (i) accept
      for payment (on a pro
      rata
      basis to
      the extent necessary in connection with an Asset Sale Offer) from each tendering
      holder, the Offer Amount of Notes or portions of Notes properly tendered and
      not
      withdrawn pursuant to the Offer to Purchase, or if less than the Offer Amount
      has been tendered, all Notes tendered; and

     

    (ii) surrender
      to the Trustee the Notes properly accepted to be cancelled by the Trustee in
      accordance Section
      2.08
      hereof,
      together with an Officers’ Certificate stating the aggregate principal amount of
      Notes or portions of Notes being purchased by the Company and that such Notes
      or
      portions thereof were accepted for payment by the Company in accordance with
      the
      terms of this Section. 

     

    (e) Upon
      receipt of the Notes in accordance with Section
      3.02(d)(i),
      the
      Company shall promptly, and in any event within (1) Business Day after the
      Purchase Date, deliver to each tendering holder the Purchase Price. In the
      event
      that any portion of the Notes surrendered is not purchased by the Company,
      the
      Company shall promptly execute and issue a new Note in a principal amount equal
      to such unpurchased portion of the Note surrendered, and, upon receipt of an
      Authentication Order in accordance with Section
      2.04
      hereof,
      the Trustee shall authenticate and deliver (or cause to be transferred by
      book-entry) such new Note to such holder, in a principal amount equal to any
      unpurchased portion of the Note surrendered; provided,
      however,
      that
      each such new Note shall be in a principal amount of $100,000 or an integral
      multiple thereof. Any Note not so accepted shall be promptly mailed or delivered
      by the Company to the holder thereof.

     

    (f) If
      the
      Purchase Date is on or after a record date for the payment of interest 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 for the payment of interest, and no further
      Interest shall be payable to holders who tender Notes pursuant to the Offer
      to
      Purchase.

     

    
      
        
        

      

      
        41

        
          

        

      

      
        
        

      

    

    (g) The
      Company shall comply, to the extent applicable, with the requirements of Rule
      14e-1 under the Exchange Act and any other securities laws and regulations
      thereunder to the extent those laws and regulations are applicable in connection
      with the Offer to Purchase. To the extent that the provisions of any securities
      laws or regulations conflict with Section
      4.12,
      Section
      4.17
      or
Section
      4.23,
      as
      applicable, this Section or other provisions of this Indenture, the Company
      shall comply with applicable securities laws and regulations and shall not
      be
      deemed to have breached its obligations under Section
      4.12,
      Section
      4.17
      or
Section
      4.23,
      as
      applicable, this Section or such other provision by virtue of such
      compliance.

     

    ARTICLE
      4

     

    PARTICULAR
      COVENANTS OF THE COMPANY

     

    Section
      4.01.   Payment
      of Principal and Interest.
      

     

    The
      Company covenants and agrees that it will duly and punctually pay or cause
      to be
      paid the principal of (including the purchase price upon an Offer to Purchase
      or
      the repurchase price upon repurchase, in each case pursuant to Article
      3)
      and
      Interest, on each of the Notes at the places, at the respective times and in
      the
      manner provided herein and in the Notes.

     

    The
      Company shall pay, from time to time on demand, interest (including
      post-petition interest in any proceeding under any Bankruptcy Law) accrued
      on
      overdue principal and premium, if any, at a rate that is 5% per annum in excess
      of the rate then in effect from the due date and ending on the date immediately
      preceding the related Interest Payment Date; 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
      shall be computed on the basis of a 360-day year of twelve 30-day
      months.

     

    Section
      4.02.  Maintenance
      of Office or Agency.
      

     

    The
      Company will maintain an office or agency in the City of New York, where the
      Notes may be surrendered for registration of transfer or exchange (“Registrar”)
      or for
      presentation for payment or for conversion, redemption or repurchase
      (“Paying
      Agent”)
      and
      where notices and demands to or upon the Company in respect of the Notes and
      this Indenture may be served. The Registrar shall keep a register (the
“Security
      Register”)
      of the
      Notes and of their transfer and exchange. The Company will give prompt written
      notice to the Trustee of the location, and any change in the location, of such
      office or agency not designated or appointed by the Trustee. If at any time
      the
      Company shall fail to maintain any such required office or agency or shall
      fail
      to furnish the Trustee with the address thereof, such presentations, surrenders,
      notices and demands may be made or served at the Corporate Trust
      Office.

     

    The
      Company may also from time to time designate co-registrars and one or more
      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
      Company will give prompt written notice of any such designation or rescission
      and of any change in the location of any such other office or
      agency.

     

    
      
        
        

      

      
        42

        
          

        

      

      
        
        

      

    

    The
      Company hereby initially designates the Trustee as paying agent, Registrar,
      Custodian and conversion agent and each of the Corporate Trust Office and the
      office of agency of the Trustee in City of New York, shall be considered as
      one
      such office or agency of the Company for each of the aforesaid
      purposes.

     

    So
      long
      as the Trustee is the Registrar, the Trustee agrees to mail, or cause to be
      mailed, the notices set forth in Section
      7.08(a)
      and the
      third paragraph of Section
      7.09.
      If
      co-registrars have been appointed in accordance with this Section, the Trustee
      shall mail such notices only to the Company and the holders of Notes it can
      identify from its records.

     

    Section
      4.03.   Provisions
      as to Paying Agent.
      

     

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

     

    (i) that
      it
      will hold all sums held by it as such agent for the payment of the principal
      of
      or Interest on the Notes (whether such sums have been paid to it by the Company
      or by any other obligor on the Notes) in trust for the benefit of the holders
      of
      the Notes;

     

    (ii) that
      it
      will give the Trustee notice of any failure by the Company (or by any other
      obligor on the Notes) to make any payment of the principal of or Interest on
      the
      Notes when the same shall be due and payable; and

     

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

     

    The
      Company shall, on the Business Day prior to each due date of the principal
      or
      Interest on the Notes, deposit with the paying agent a sum (in funds which
      are
      immediately available on the due date for such payment) sufficient to pay such
      principal or Interest, and (unless such paying agent is the Trustee) the Company
      will promptly notify the Trustee in writing of any failure to take such action;
      provided
      that if
      such deposit is made on the due date, such deposit shall be received by the
      paying agent by 10:00 a.m. New York City time, on such date.

     

    (b) If
      the
      Company shall act as its own paying agent, it will, on the Business Day prior
      to
      each due date of the principal of or Interest on the Notes, set aside, segregate
      and hold in trust for the benefit of the holders of the Notes a sum sufficient
      to pay such principal or Interest so becoming due and will promptly notify
      the
      Trustee in writing of any failure to take such action and of any failure by
      the
      Company (or any other obligor under the Notes) to make any payment of the
      principal of or Interest on the Notes when the same shall become due and
      payable.

     

    (c) Anything
      in this Section to the contrary notwithstanding, the Company may, at any time,
      for the purpose of obtaining a satisfaction and discharge of this Indenture,
      or
      for any other reason, pay or cause to be paid to the Trustee all sums held
      in
      trust by the Company or any paying agent hereunder as required by this Section,
      such sums to be held by the Trustee upon the trusts herein contained and upon
      such payment by the Company or any paying agent to the Trustee, the Company
      or
      such paying agent shall be released from all further liability with respect
      to
      such sums.

     

    
      
        
        

      

      
        43

        
          

        

      

      
        
        

      

    

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

     

    The
      Trustee shall not be responsible for the actions of any other paying agents
      (including the Company if acting as its own paying agent) and shall have no
      control of any funds held by such other paying agents.

     

    Section
      4.04.   Existence.
      

     

    Subject
      to Article
      5,
      the
      Company will do or cause to be done all things necessary to preserve and keep
      in
      full force and effect its existence and rights (charter and statutory);
provided
      that the
      Company shall not be required to preserve any such right if the Company shall
      determine that the preservation thereof is no longer desirable in the conduct
      of
      the business of the Company and that the loss thereof is not disadvantageous
      in
      any material respect to the Noteholders.

     

    Section
      4.05.   Maintenance
      of Properties.
      

     

    The
      Company will cause all properties used or useful in the conduct of its business
      or the business of any Significant Subsidiary to be maintained and kept in
      good
      condition, repair and working order and supplied with all necessary equipment
      and will cause to be made all necessary repairs, renewals, replacements,
      betterments and improvements thereof, all as in the judgment of the Company
      may
      be necessary so that the business carried on in connection therewith may be
      properly and advantageously conducted at all times; provided
      that
      nothing in this Section shall prevent the Company from discontinuing the
      operation or maintenance of any of such properties if such discontinuance is,
      in
      the judgment of the Company, desirable in the conduct of its business or the
      business of any subsidiary and not disadvantageous in any material respect
      to
      the Noteholders.

     

    Section
      4.06.   Payment
      of Taxes and Other Claims.
      

     

    The
      Company will pay or discharge, or cause to be paid or discharged, before the
      same may become delinquent, (i) all taxes, assessments and governmental charges
      levied or imposed upon the Company or any Significant Subsidiary or upon the
      income, profits or property of the Company or any Significant Subsidiary, (ii)
      all claims for labor, materials and supplies which, if unpaid, might by law
      become a lien or charge upon the property of the Company or any Significant
      Subsidiary and (iii) all stamp taxes and other duties, if any, which may be
      imposed by the United States or any political subdivision thereof or therein
      in
      connection with the issuance, transfer, exchange, conversion, redemption or
      repurchase of any Notes or with respect to this Indenture; provided
      that, in
      the case of clauses (i) and (ii), the Company shall not be required to pay
      or
      discharge or cause to be paid or discharged any such tax, assessment, charge
      or
      claim (A) if the failure to do so will not, in the aggregate, have a material
      adverse impact on the Company, or (B) if the amount, applicability or validity
      is being contested in good faith by appropriate proceedings.

     

    
      
        
        

      

      
        44

        
          

        

      

      
        
        

      

    

    Section
      4.07.  Stay,
      Extension and Usury Laws.
      

     

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

     

    Section
      4.08.   Payments
      for Consent.

     

    The
      Company shall not, and shall not permit any of its Subsidiaries to, directly
      or
      indirectly, pay or cause to be paid any consideration, whether by way of
      interest, fee or otherwise, to or for the benefit of any holder for or as an
      inducement to any consent, waiver or amendment of any of the terms or provisions
      of this Indenture or the Notes unless such consideration is offered to be paid
      and is paid to all holders that consent, waive or agree to amend in the time
      frame set forth in the solicitation documents relating to such consent, waiver
      or agreement.

     

    Section
      4.09.  Incurrence
      of Additional Debt;
      Financial Covenants.

     

    (a) The
      Company shall not, and shall not permit any of its Subsidiaries to, Incur,
      directly or indirectly, any Debt unless, after giving effect to the application
      of the proceeds thereof, no Default or Event of Default would occur as a
      consequence of such Incurrence or be continuing following such
      Incurrence.

     

    (b) The
      Company shall maintain: 

     

    (i) a
      Fixed
      Charge Coverage Ratio, as determined as of the last day of each Fiscal Quarter,
      for the four Fiscal Quarters ending on such day, of at least 12.00 to
      1.00.

     

    (ii) a
      Leverage Ratio, as determined as of the last day of each Fiscal Quarter, for
      the
      four Fiscal Quarters ending on such day, not exceeding 2.50 to
      1.00.

     

    (c) Notwithstanding
      anything to the contrary contained in this Section,

     

    (i) the
      Company shall not, and
      shall
      not permit any Guarantor to, Incur any Debt pursuant to this covenant if the
      proceeds thereof are used, directly or indirectly, to Refinance any Subordinated
      Obligations unless such Debt shall be subordinated to the Notes or the
      applicable Guarantee, as the case may be, to at least the same extent as such
      Subordinated Debt; 

     

    (ii) the
      Company shall not permit any of its Subsidiaries that is not a Guarantor to
      Incur any Debt pursuant to this covenant if the proceeds thereof are used,
      directly or indirectly, to Refinance any Debt of the Company or any Guarantor;
      and

     

    
      
        
        

      

      
        45

        
          

        

      

      
        
        

      

    

    (iii) accrual
      of interest, accretion or amortization of original issue discount and the
      payment of interest or dividends in the form of additional Debt, will be deemed
      not to be an Incurrence of Debt for purposes of this Section.

     

    Section
      4.10.   Restricted
      Payments.

     

    The
      Company shall not make, and shall not permit any of its Subsidiaries to make,
      directly or indirectly, any Restricted Payment if at the time of, and after
      giving effect to, such proposed Restricted Payment,

     

    (a) a
      Default
      or Event of Default shall have occurred and be continuing, or

     

    (b) the
      Company could not Incur at least $1.00 of additional Debt in compliance with
      Section
      4.09,
      or

     

    (c) the
      aggregate amount of such Restricted Payment and all other Restricted Payments
      declared or made since the Issue Date (the amount of any Restricted Payment,
      if
      made other than in cash, to be based upon Fair Market Value at the time of
      such
      Restricted Payment) would exceed an amount equal to the sum of:

     

    (1) 10%
      of
      the aggregate amount of Consolidated Net Income accrued during the period
      (treated as one accounting period) from the beginning of the Fiscal Quarter
      after the Issue Date to the end of the most recent Fiscal Quarter ending prior
      to the date of such Restricted Payment (or if the aggregate amount of
      Consolidated Net Income for such period shall be a deficit, minus 100% of such
      deficit), plus

     

    (2) 100%
      of
      the Capital Stock Sale Proceeds, plus

     

    (3) the
      sum
      of:

     

    (A) the
      aggregate net cash proceeds received by the Company or any Guarantor from the
      issuance or sale after the Issue Date of convertible or exchangeable Debt that
      has been converted into or exchanged for Capital Stock (other than Disqualified
      Stock) of the Company, and 

     

    (B) the
      aggregate amount by which Debt (other than Subordinated Obligations) of the
      Company or any Guarantor is reduced on the Company’s consolidated balance sheet
      on or after the Issue Date upon the conversion or exchange of any Debt issued
      or
      sold on or prior to the Issue Date that is convertible or exchangeable for
      Capital Stock (other than Disqualified Stock) of the Company,

     

    excluding,
      in the case of clause (A) or (B):

     

    
      
        
        

      

      
        46

        
          

        

      

      
        
        

      

    

    (x)
      any
      such Debt issued or sold to the Company or a Subsidiary of the Company or an
      employee stock
      ownership plan or trust established by the Company or any such Subsidiary for
      the benefit of their employees, and 

     

    (y)
      the
      aggregate amount
      of any
      cash or other Property distributed by the Company or any of its Subsidiaries
      upon any such conversion or exchange, plus

     

    (4) an
      amount
      equal to the net reduction in Investments in any Person other than the Company
      or any of its Subsidiaries resulting from dividends, repayments of loans or
      advances or other transfers of Property, in each case to the Company or any
      of
      its Subsidiaries from such Person.

     

    Notwithstanding
      the foregoing limitation, the Company may:

     

    (a) pay
      dividends on its Capital Stock within 60 days of the declaration thereof if,
      on
      the declaration date, such dividends could have been paid in compliance with
      the
      Indenture; provided,
      however,
      that at
      the time of such payment of such dividend, no other Default or Event of Default
      shall have occurred and be continuing (or result therefrom); provided
      further,
      however,
      that
      such dividend shall be included in the calculation of the amount of Restricted
      Payments;

     

    (b) purchase,
      repurchase, redeem, legally defease,
      acquire
      or retire for value Capital Stock of the
      Company
      or Subordinated
      Obligations in exchange for, or out of the proceeds of the substantially
      concurrent sale of, Capital Stock of the Company (other than Disqualified Stock
      and other than Capital Stock issued or sold to a Subsidiary of the Company
      or an
      employee stock ownership plan or trust established by the Company or any such
      Subsidiary for the benefit of their employees); provided,
      however,
      that

     

    (1) such
      purchase, repurchase, redemption, legal defeasance, acquisition or retirement
      shall be excluded in the calculation of the amount of Restricted Payments
      and

     

    (2) the
      Capital Stock Sale Proceeds from such exchange or sale shall be excluded from
      the calculation pursuant to clause (c)(2) above; and

     

    (c) purchase,
      repurchase, redeem, legally defease, acquire or retire for value any
      Subordinated Obligations in exchange for, or out of the proceeds of the
      substantially concurrent sale of, Permitted Refinancing Debt; provided,
      however,
      that
      such purchase, repurchase, redemption, legal defeasance, acquisition or
      retirement shall be excluded in the calculation of the amount of Restricted
      Payments.

     

    Section
      4.11.  Liens.

     

    The
      Company shall not, and shall not permit any of its Subsidiaries to, directly
      or
      indirectly, Incur or suffer to exist, any Lien (other than Permitted Liens)
      upon
      any of its Property (including Capital Stock of any of its Subsidiaries),
      whether owned at the Issue Date or thereafter acquired, or any interest therein
      or any income or profits therefrom, unless it has made or will make effective
      provision whereby the Notes or the applicable Guarantee will be secured by
      such
      Lien equally and ratably with (or, if such other Debt constitutes Subordinated
      Debt, prior to) all other Debt of the Company or any of its Subsidiaries secured
      by such Lien for so long as such other Debt is secured by such
      Lien.

     

    
      
        
        

      

      
        47

        
          

        

      

      
        
        

      

    

    Section
      4.12.   Asset
      Sales.

     

    The
      Company shall not, and shall not permit any of its Subsidiaries to, directly
      or
      indirectly, consummate any Asset Sale unless: 

     

    (a) the
      Company or such Subsidiary receives consideration at the time of such Asset
      Sale
      at least equal to the Fair Market Value of the Property subject to such Asset
      Sale;

     

    (b) at
      least
      75% of the consideration paid to the Company or such Subsidiary in connection
      with such Asset Sale is in the form of cash or Cash Equivalents or the
      assumption by the purchaser of liabilities of the Company or any of its
      Subsidiaries (other than contingent liabilities or liabilities that are by
      their
      terms subordinated to the Notes or the applicable Guarantee) as a result of
      which the Company and its Subsidiaries are no longer obligated with respect
      to
      such liabilities; and 

     

    (c) the
      Company delivers an Officers’ Certificate to the Trustee certifying that such
      Asset Sale complies with the foregoing clauses (a) and (b).

     

    The
      Net
      Available Cash (or any portion thereof) from Asset Sales may be applied by
      the
      Company or any of its Subsidiaries, to the extent the Company or such Subsidiary
      elects (or is required by the terms of any Debt) (i) to Repay Senior Debt of
      the
      Company or any Guarantor or Debt of any Subsidiary that is not a Guarantor
      (excluding, in any such case, any Debt owed to the Company or an Affiliate
      of
      the Company), or (ii) to reinvest in Additional Assets (including by means
      of an
      Investment in Additional Assets by any Subsidiary of the Company with Net
      Available Cash received by the Company or another Subsidiary of the
      Company).

     

    Any
      Net
      Available Cash from an Asset Sale not applied in accordance with the preceding
      paragraph within 180 days from the date of the receipt of such Net Available
      Cash shall constitute “Excess
      Proceeds”.
      

     

    When
      the
      aggregate amount of Excess Proceeds exceeds $5.0 million (taking into account
      income earned on such Excess Proceeds, if any), the Company will be required
      to
      make an offer to repurchase (the “Asset
      Sale Offer”)
      the
      Notes, which offer shall be in the amount of the Allocable Excess Proceeds
      (rounded to the nearest $100,000), on a pro
      rata
      basis
      according to principal amount, at the Repurchase Amount, in accordance with
      the
      procedures (including prorating in the event of oversubscription) set forth
      in
Section
      3.02.
      To the
      extent that any portion of the amount of Net Available Cash remains after
      compliance with the preceding sentence and provided
      that
      all
      holders of Notes have been given the opportunity to tender their Notes for
      repurchase in accordance with Section
      3.02,
      the
      Company or such Subsidiary may use such remaining amount first to Repay the
      Credit Facilities or any other Senior Debt of the Company or any Guarantor
      or
      Debt of any Subsidiary of the Company that is not a Guarantor (excluding, in
      any
      such case, any Debt owed to the Company or an Affiliate of the Company), and
      only thereafter, for any purpose permitted by this Indenture, and the amount
      of
      Excess Proceeds will be reset to zero. 

     

    
      
        
        

      

      
        48

        
          

        

      

      
        
        

      

    

    The
      term
“Allocable
      Excess Proceeds”
shall
      mean the product of: 

     

    (a) the
      Excess Proceeds and 

     

    (b) a
      fraction, 

     

    (1) the
      numerator of which is the aggregate principal amount of the Notes outstanding
      on
      the date of the Asset Sale Offer, and 

     

    (2) the
      denominator of which is the sum of the aggregate principal amount of the Notes
      outstanding on the date of the Asset Sale Offer and the aggregate principal
      amount (or accreted value, if applicable) of other Debt of the Company
      outstanding on the date of the Asset Sale Offer that is pari
      passu in
      right
      of payment with the Notes and subject to terms and conditions in respect of
      Asset Sales similar in all material respects to this Section and requiring
      the
      Company to make an offer to repurchase such Debt at substantially the same
      time
      as the Asset Sale Offer.

     

    Section
      4.13.   Restrictions
      on Distributions from Subsidiaries.

     

    The
      Company shall not, and shall not permit any of its Subsidiaries to, directly
      or
      indirectly, create or otherwise cause or suffer to exist any consensual
      restriction on the right of any of its Subsidiaries to:

     

    (a) pay
      dividends, in cash or otherwise, or make any other distributions on or in
      respect of its Capital Stock owned by, or pay any Debt or other obligation
      owed,
      to, the Company or any other Subsidiary of the Company, 

     

    (b) make
      any
      loans or advances to the Company or any other Subsidiary of the Company, or
      

     

    (c) transfer
      any of its Property to the Company or any other Subsidiary of the Company.
      

     

    The
      foregoing limitations will not apply:

     

    (1) with
      respect to clauses (a), (b) and (c), to restrictions:

     

    (A) in
      effect
      on the Issue Date (including, without limitation, restrictions pursuant to
      the
      Notes and this Indenture), 

     

    (B) relating
      to Debt of any Subsidiary of the Company and existing at the time it became
      a
      Subsidiary of the Company if such restriction was not created in connection
      with
      or in anticipation of the transaction or series of transactions pursuant to
      which such Subsidiary became a Subsidiary of the Company or was acquired by
      the
      Company, or 

     

    
      
        
        

      

      
        49

        
          

        

      

      
        
        

      

    

    (C) that
      result from the Refinancing of Debt Incurred pursuant to an agreement referred
      to in clause (1)(A) or (B) above or in clause (2)(A) or (B) below, provided
      such
      restrictions are not less favorable to the holders of Notes than those under
      the
      agreement evidencing the Debt so Refinanced, and

     

    (2) with
      respect to clause (c) only, to restrictions:

     

    (A) relating
      to Debt that is permitted to be Incurred and secured without also securing
      the
      Notes or the applicable Guarantee in
      compliance with Section
      4.09
      and
Section
      4.11
      that
      limit the right of the debtor to dispose of the Property securing such
      Debt,

     

    (B) encumbering
      Property at the time such Property was acquired by the Company or any of its
      Subsidiaries, so long as such restrictions relate solely to the Property so
      acquired and were not created in connection with or in anticipation of such
      acquisition,

     

    (C) resulting
      from customary provisions restricting subletting or assignment of leases or
      customary provisions in other agreements that restrict assignment of such
      agreements or rights thereunder, or

     

    (D) customary
      restrictions contained in asset sale agreements limiting the transfer of such
      Property pending the closing of such sale.

     

    Section
      4.14.  Affiliate
      Transactions.

     

    The
      Company shall not, and shall not permit any of its Subsidiaries to, directly
      or
      indirectly, conduct any business or enter into or suffer to exist any
      transaction or series of transactions (including the purchase, sale, transfer,
      assignment, lease, conveyance or exchange of any Property or the rendering
      of
      any service) with, or for the benefit of, any Affiliate of the Company (an
      “Affiliate
      Transaction”),
      unless:

     

    (a) the
      terms
      of such Affiliate Transaction are:

     

    (1) set
      forth
      in writing, 

     

    (2) in
      the
      best interest of the Company or such Subsidiary, as the case may be, and

     

    (3) no
      less
      favorable to the Company or such Subsidiary, as the case may be, than those
      that
      could be obtained in a comparable arm’s-length transaction with a Person that is
      not an Affiliate of the Company,

     

    
      
        
        

      

      
        50

        
          

        

      

      
        
        

      

    

    (b) if
      such
      Affiliate Transaction involves aggregate payments or value in excess of $1.0
      million, the Board of Directors (including a majority of the disinterested
      members of the Board of Directors) approves such Affiliate Transaction and,
      in
      its good faith judgment, believes that such Affiliate Transaction complies
      with
      clauses (a)(2) and (3) of this paragraph as evidenced by a Board Resolution
      promptly delivered to the Trustee, and 

     

    (c) if
      such
      Affiliate Transaction involves aggregate payments or value in excess of $5.0
      million, the Company obtains a written opinion from an Independent Financial
      Advisor to the effect that the consideration to be paid or received in
      connection with such Affiliate Transaction is fair, from a financial point
      of
      view, to the Company and its Subsidiaries.

     

    Notwithstanding
      the foregoing limitation, the Company or any of its Subsidiaries may enter
      into
      or suffer to exist the following:

     

    (a) any
      transaction or series of transactions between the Company and one or more of
      its
      Subsidiaries or between two or more of its Subsidiaries in the ordinary course
      of business, provided
      that no
      more than 5% of the total voting power of the Voting Stock (on a fully diluted
      basis) of any such Subsidiary is owned by an Affiliate of the Company (other
      than any Subsidiary of the Company);

     

    (b) any
      Restricted Payment permitted to be made pursuant to Section
      4.10
      or any
      Permitted Investment;

     

    (c) the
      payment of compensation (including amounts paid pursuant to employee benefit
      plans) for the personal services of officers, directors and employees of the
      Company or any of its Subsidiaries, so long as the Board of Directors in good
      faith shall have approved the terms thereof and deemed the services theretofore
      or thereafter to be performed for such compensation to be fair consideration
      therefor; and

     

    (d) loans
      and
      advances to employees made in the ordinary course of business and consistent
      with the past practices of the Company or such Subsidiary, as the case may
      be,
provided
      that
      such
      loans and advances do not exceed $300,000 in the aggregate at any one time
      outstanding; provided,
      however,
      that
      the Company and its Subsidiaries shall comply in all material respects with
      all
      provisions of the Sarbanes-Oxley Act of 2002 and the rules and regulations
      promulgated in connection therewith that would be applicable to an issuer with
      debt securities registered under the Securities Act relating to such loans
      and
      advances.

     

    Section
      4.15.   Issuance
      or Sale of Capital Stock of Subsidiaries.

     

    The
      Company shall not:

     

    (a) sell,
      pledge, hypothecate or otherwise dispose of any shares of Capital Stock of
      any
      of its Subsidiaries, or 

     

    
      
        
        

      

      
        51

        
          

        

      

      
        
        

      

    

    (b) permit
      any Subsidiary of the Company to, directly or indirectly, issue or sell or
      otherwise dispose of any shares of its Capital Stock, 

     

    other
      than, in the case of either (a) or (b):

     

    (1) directors’
      qualifying shares, 

     

    (2) to
      the
      Company or a Wholly Owned Subsidiary, or

     

    (3) a
      disposition of 100% of the shares of Capital Stock of such Subsidiary;
provided,
      however,
      that, in
      the case of this clause (3),

     

    (A) such
      disposition is effected in compliance with Section
      4.12,
      and

     

    (B) upon
      consummation of such disposition and execution and delivery of a supplemental
      indenture in form satisfactory to the Trustee, such Subsidiary shall be released
      from any Guarantee previously made by such Subsidiary.

     

    Section
      4.16.   Maintenance
      of Consolidated Tangible Net Worth.

     

    The
      Company shall not, on the Issue Date (after giving effect to the issuance of
      the
      Notes) or at the end of any Fiscal Quarter thereafter, permit its Consolidated
      Tangible Net Worth to be less than the Consolidated Tangible Net Worth
      Threshold. The “Consolidated Tangible Net Worth Threshold” shall be equal to
      $150.0 million from the Issue Date until the first annual anniversary thereof,
      and at each annual anniversary of the Issue Date shall increase by an amount
      equal to $50.0 million.

     

    Section
      4.17.  Repurchase
      at the Option of Holders Following a Change of Control.

     

    (a) Upon
      the
      occurrence of a Change of Control, the Company shall, within 7 days thereafter
      notify the Trustee and the holders of such Change of Control, and within 30
      days
      of a Change of Control, make an offer (the “Change
      of Control Offer”)
      pursuant to the procedures set forth in Section
      3.02.
      Each
      holder shall have the right to accept such offer and require the Company to
      repurchase all or any portion (equal to $100,000 or an integral multiple
      thereof) of such holder’s Notes pursuant to the Change of Control Offer at a
      purchase price, in cash equal to the Repurchase Amount.

     

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

     

    Section
      4.18.   Future
      Guarantors.

     

    
      
        
        

      

      
        52

        
          

        

      

      
        
        

      

    

    (a) Each
      of
      the Operating Subsidiaries hereby agrees, and each of the Company, Safetech
      and
      CSST HK, hereby agrees, jointly and severally, to cause each Operating
      Subsidiary, to execute and deliver to the Trustee a Guarantee to the fullest
      extent permitted under applicable laws (including the laws of the PRC) and
      subject to obtaining all necessary Governmental Approvals. 

     

    (b) The
      Company shall cause each Person that becomes a Subsidiary following the Issue
      Date to execute and deliver to the Trustee a Guarantee at the time such Person
      becomes a Subsidiary, provided that, in the case of a Person that becomes a
      Subsidiary incorporated in the PRC, the Company shall cause such Subsidiary
      to
      execute and deliver to the Trustee a Guarantee to the fullest extent permitted
      by applicable laws (including the laws of the PRC) and subject to obtaining
      all
      necessary Governmental Approval. 

     

    Section
      4.19.   Business
      Activities.

     

    The
      Company shall not, and the Company shall not permit any of its Subsidiaries
      to,
      directly or indirectly, engage in any business other than a Related
      Business.

     

    Section
      4.20.   Sale
      and Leaseback Transactions.

     

    The
      Company shall not, and shall not permit any of its Subsidiaries to, enter into
      any Sale and Leaseback Transaction with respect to any Property
      unless:

     

    (a) the
      Company or such Subsidiary would be entitled to:

     

    (1) Incur
      Debt in an amount equal to the Attributable Debt with respect to such Sale
      and
      Leaseback Transaction in compliance with Section
      4.09
      and

     

    (2) create
      a
      Lien on such Property securing such Attributable Debt without also securing
      the
      Notes or the applicable Guarantee pursuant
      to Section
      4.11
      and

     

    (b) such
      Sale
      and Leaseback Transaction is effected in compliance with Section
      4.12.

     

    Section
      4.21.   Use
      of
      Proceeds.

     

    The
      Company will not use the net proceeds from the sale of the Notes, in any amount,
      for any purpose other than for repayment of the Bridge Notes, Capital
      Expenditures, working capital and general corporate purposes, and pending the
      application of all of such net proceeds in such manner, to invest the portion
      of
      such net proceeds not yet so applied in Cash Equivalents. Following the
      application of net proceeds in such manner, any remaining net proceeds may
      be
      applied for general corporate purposes not otherwise prohibited by the terms
      of
      this Indenture.

     

    Section
      4.22.   Maintenance
      of Insurance.

     

    
      
        
        

      

      
        53

        
          

        

      

      
        
        

      

    

    The
      Company shall, and shall cause its Subsidiaries to, maintain insurance policies
      covering such risks, in such amounts and with such terms as are normally carried
      by similar companies engaged in a similar business to the Related Business
      in
      the PRC.

     

    Section
      4.23.   Repurchase
      Upon Termination of Trading.

     

    Upon
      the
      occurrence of a Termination of Trading, the Company shall, within 7 days
      thereafter notify the Trustee and the holders of such Termination of Trading,
      and within 30 days of a Termination of Trading, make an offer (the “Termination
      of Trading Offer”)
      pursuant to the procedures set forth in Section
      3.02.
      Each
      holder shall have the right to accept such offer and require the Company to
      repurchase all or any portion (equal to $100,000 or an integral multiple of
      $100,000) of such holder’s Notes pursuant to the Termination of Trading Offer at
      a purchase price, in cash equal to the Repurchase Amount.

     

    Section
      4.24.   Government
      Approvals and Licenses; Compliance with Law.

     

    The
      Company shall, and shall cause its Subsidiaries to, (a) obtain and maintain
      in
      full force and effect all Governmental Approvals, authorizations, consents,
      permits, concessions and licenses as are necessary to engage in a Related
      Business, (b) preserve and maintain good and valid title to its properties
      and
      assets (including land-use rights) free and clear of any Liens other than
      Permitted Liens and (c) comply with all laws, regulations, orders, judgments
      and
      decrees of any governmental body, except to the extent that failure so to
      obtain, maintain, preserve and comply would reasonably be expected to have
      a
      material adverse effect on (1) the business, results of operations or prospects
      of the Company and its Subsidiaries taken as a whole or (2) the ability of
      the
      Company or any Guarantor to perform its obligations under the Notes, the
      relevant Guarantee of the Notes or this Indenture.

     

    Section
      4.25.   [RESERVED].

     

    Section
      4.26.   Notes
      to Rank Senior.

     

    The
      Notes
      and all other obligations of the Company and the Guarantors under this Indenture
      are and at all times shall remain direct and unsecured obligations of the
      Company and each Guarantor ranking pari
      passu
      in right
      and priority of payment, without any preference or priority among themselves
      and
      at least equally with all other present and future unsecured Indebtedness
      (actual or contingent) of the Company and each Guarantor (except as otherwise
      required by law).

     

    Section
      4.27.   Compliance
      Certificate.
      

     

    The
      Company shall deliver to the Trustee, within one hundred twenty (120) days
      after
      the end of each fiscal year of the Company, a certificate signed by either
      the
      principal executive officer, principal financial officer or principal accounting
      officer of the Company, stating whether or not to the best knowledge of the
      signer thereof the Company is in default in the performance and observance
      of
      any of the terms, provisions and conditions of this Indenture (without regard
      to
      any period of grace or requirement of notice provided hereunder) and, if the
      Company shall be in default, specifying all such defaults and the nature and
      the
      status thereof of which the signer may have knowledge.

     

    
      
        
        

      

      
        54

        
          

        

      

      
        
        

      

    

    The
      Company will deliver to the Trustee, forthwith upon becoming aware of (i) any
      default in the performance or observance of any covenant, agreement or condition
      contained in this Indenture, or (ii) any Event of Default, an Officers’
Certificate specifying with particularity such Default or Event of Default
      and
      further stating what action the Company has taken, is taking or proposes to
      take
      with respect thereto.

     

    Any
      notice required to be given under this Section shall be delivered to a
      Responsible Officer of the Trustee at its Corporate Trust Office.

     

    Section
      4.28.   Calculation
      of Original Issue Discount.
      

     

    The
      Company shall file with the Trustee, solely for purposes of making such
      information available to the holders upon request, promptly at the end of each
      calendar year (i) a written notice specifying the amount of Tax Original Issue
      Discount (including daily rates and accrual periods) accrued on outstanding
      Notes as of the end of such year and (ii) such other specific information
      relating to such Tax Original Issue Discount as may then be required under
      the
      Code, or the Treasury regulations promulgated thereunder.

     

    ARTICLE
      5

     

    SUCCESSORS

     

    Section
      5.01.   Merger,
      Consolidation and Sale of Assets.

     

    (a) The
      Company shall not merge, consolidate or amalgamate with or into any other Person
      (other than a merger of a Wholly Owned Subsidiary into the Company) or sell,
      transfer, assign, lease, convey or otherwise dispose of all or substantially
      all
      of its Property in any one transaction or series of transactions unless:

     

    (i) the
      Company shall be the Surviving Person in such merger, consolidation or
      amalgamation, or the Surviving Person (if other than the Company) formed by
      such
      merger, consolidation or amalgamation or to which such sale, transfer,
      assignment, lease, conveyance or disposition is made shall be a corporation
      organized and existing under the laws of the United States of America, any
      State
      thereof or the District of Columbia;

     

    (ii) the
      Surviving Person (if other than the Company) expressly assumes, by supplemental
      indenture in form satisfactory to the Trustee, executed and delivered to the
      Trustee by such Surviving Person, the due and punctual payment of the principal
      of, and premium, if any, and interest on, all the Notes, according to their
      tenor, and the due and punctual performance and observance of all the covenants
      and conditions of this Indenture to be performed by the Company; 

     

    (iii) in
      the
      case of a sale, transfer, assignment, lease, conveyance or other disposition
      of
      all or substantially all the Property of the Company, such Property shall have
      been transferred as an entirety or virtually as an entirety to one Person or
      a
      group of related persons; 

     

    
      
        
        

      

      
        55

        
          

        

      

      
        
        

      

    

    (iv) immediately
      before and after giving effect to such transaction or series of transactions
      on
      a pro forma basis (and treating, for purposes of this clause (iv) and clauses
      (v) and (vi) below, any Debt that becomes, or is anticipated to become, an
      obligation of the Surviving Person or any Subsidiary of the Company as a result
      of such transaction or series of transactions as having been Incurred by the
      Surviving Person or such Subsidiary at the time of such transaction or series
      of
      transactions), no Default or Event of Default shall have occurred and be
      continuing; 

     

    (v) immediately
      after giving effect to such transaction or series of transactions on a pro
      forma
      basis, the Surviving Person shall have a Consolidated Net Worth in an amount
      which is not less than the Consolidated Net Worth of the Company immediately
      prior to such transaction or series of transactions;

     

    (vi) the
      Company shall deliver, or cause to be delivered, to the Trustee, an Officers’
Certificate and an Opinion of Counsel, each stating that such transaction or
      series of transactions and the supplemental indenture, if any, in respect
      thereto comply with this covenant and that all conditions precedent herein
      provided for relating to such transaction or series of transactions have been
      satisfied; and

     

    (vii) the
      Company shall have delivered to the Trustee an Opinion of Counsel to the effect
      that the holders will not recognize income, gain or loss for federal income
      tax
      purposes as a result of such transaction and will be subject to federal income
      tax on the same amounts, in the same manner and at the same times as would
      have
      been the case if such transaction had not occurred.

     

    The
      foregoing provisions (other than clause (iv)) shall not apply to any transaction
      or series of transactions which constitute an Asset Sale if the Company has
      complied with Section
      4.12.

     

    (b) The
      Company shall not permit any Guarantor to merge, consolidate or amalgamate
      with
      or into any other Person (other than a merger of a Wholly Owned Subsidiary
      into
      the Company or such Guarantor) or sell, transfer, assign, lease, convey or
      otherwise dispose of all or substantially all its Property in any one
      transaction or series of transactions unless:

     

    (i) the
      Surviving Person (if other than such Guarantor) expressly assumes, to the extent
      permitted by applicable laws, by supplemental indenture in form satisfactory
      to
      the Trustee, executed and delivered to the Trustee by such Surviving Person,
      the
      due and punctual performance and observance of all the obligations of such
      Guarantor under its Guarantee; 

     

    (ii) in
      the
      case of a sale, transfer, assignment, lease, conveyance or other disposition
      of
      all or substantially all the Property of such Guarantor, such Property shall
      have been transferred as an entirety or virtually as an entirety to one Person;
      

     

    (iii) immediately
      before and after giving effect to such transaction or series of transactions
      on
      a pro forma basis (and treating, for purposes of this clause (iii) and clauses
      (iv) and (v) below, any Debt that becomes, or is anticipated to become, an
      obligation of the Surviving Person, the Company or any of its Subsidiaries
      as a
      result of such transaction or series of transactions as having been Incurred
      by
      the Surviving Person, the Company or such Subsidiary at the time of such
      transaction or series of transactions), no Default or Event of Default shall
      have occurred and be continuing; 

     

    
      
        
        

      

      
        56

        
          

        

      

      
        
        

      

    

    (iv) immediately
      after giving effect to such transaction or series of transactions on a pro
      forma
      basis, the Company shall have a Consolidated Net Worth in an amount which is
      not
      less than the Consolidated Net Worth of the Company immediately prior to such
      transaction or series of transactions;

     

    (v) the
      Company shall deliver, or cause to be delivered, to the Trustee, an Officers’
Certificate and an Opinion of Counsel, each stating that such transaction or
      series of transactions and the supplemental indenture, if any, in respect
      thereto comply with this covenant and that all conditions precedent herein
      provided for relating to such transaction or series of transactions have been
      satisfied; and

     

    (vi) the
      Company shall have delivered to the Trustee an Opinion of Counsel to the effect
      that the holders will not recognize income, gain or loss for federal income
      tax
      purposes as a result of such transaction and will be subject to federal income
      tax on the same amounts, in the same manner and at the same times as would
      have
      been the case if such transaction had not occurred.

     

    The
      foregoing provisions (other than clause (iii)) shall not apply to any
      transaction or series of transactions which constitute an Asset Sale if the
      Company has complied with Section
      4.12.

     

    Section
      5.02.  Successor
      Corporation Substituted.

     

    The
      Surviving Person shall succeed to, and be substituted for, and may exercise
      every right and power of the Company or a Guarantor, as applicable, under this
      Indenture; provided,
      however,
      that
      the predecessor entity shall not be released from any of the obligations or
      covenants under this Indenture, including with respect to the payment of the
      Notes and obligations under the Guarantee, as the case may be, in the case
      of:

     

    (a) a
      sale,
      transfer, assignment, conveyance or other disposition (unless such sale,
      transfer, assignment, conveyance or other disposition is of all or substantially
      all of the assets of the Company, taken as a whole or, in the case of a
      Guarantor, such sale, transfer, assignment, conveyance or other disposition
      is
      of all or substantially all of the assets of such Guarantor to a Person that
      is
      not (either before or after giving effect to such transaction) a Subsidiary
      of
      the Company, or such portion of the Capital Stock of such Guarantor ceases
      to be
      a Subsidiary of the Company), or

     

    (b) a
      lease.

     

    ARTICLE
      6

     

    REMEDIES
      OF THE TRUSTEE AND NOTEHOLDERS ON AN EVENT OF DEFAULT

     

    Section
      6.01.   Events
      of Default.
      

     

    
      
        
        

      

      
        57

        
          

        

      

      
        
        

      

    

    In
      case
      one or more of the following Events of Default (whatever the reason for such
      Event of Default and whether it shall be voluntary or involuntary or be effected
      by operation of law or pursuant to any judgment, decree or order of any court
      or
      any order, rule or regulation of any administrative or governmental body) shall
      have occurred and be continuing:

     

    (a) default
      in the payment of any installment of Interest upon any of the Notes as and
      when
      the same shall become due and payable and continuance of such default for a
      period of fifteen (15) days; or

     

    (b) default
      in the payment of the principal of, and premium, if any, on, any of the Notes
      as
      and when the same shall become due and payable either at maturity or in
      connection with any redemption, repurchase or otherwise, in each case pursuant
      to Article
      3,
      by
      acceleration or otherwise; or

     

    (c) default
      in the Company’s obligation to provide an Offer to Purchase when required in
      connection with an Asset Sale, a Change of Control or Termination of Trading
      as
      provided in Section
      3.02;
      or

     

    (d) failure
      to comply with Section
      5.01;

     

    (e) failure
      on the part of the Company duly to observe or perform any other of the covenants
      or agreements on the part of the Company in the Notes or in this Indenture
      (other than a covenant or agreement a default in whose performance or whose
      breach is elsewhere in this Section specifically dealt with) continued for
      a
      period of thirty (30) days after the date on which written notice of such
      failure, requiring the Company to remedy the same, shall have been given to
      the
      Company by the Trustee, or the Company and a Responsible Officer of the Trustee
      by the holders of at least twenty-five percent (25%) in aggregate principal
      amount of the Notes at the time outstanding determined in accordance with
Section
      12.04;
      or

     

    (f) the
      Company, any of its Significant Subsidiaries (or any group of Subsidiaries
      that,
      when taken together, would constitute a Significant Subsidiary) pursuant to
      or
      within the meaning of any Bankruptcy Law:

     

    (i) commences
      a voluntary case or gives notice of intention to make a proposal under any
      Bankruptcy Law;

     

    (ii) consents
      to the entry of an order for relief against it in an involuntary case or
      consents to its dissolution or winding up;

     

    (iii) consents
      to the appointment of a receiver, interim receiver, receiver and manager,
      liquidator, trustee or custodian of it or for all or substantially all of its
      property;

     

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

     

    (v) admits
      in
      writing its inability to pay its debts as they become due or otherwise admits
      its insolvency; or

     

    
      
        
        

      

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

     

    (i) is
      for
      relief against the Company, any of its Significant Subsidiaries (or any group
      of
      Subsidiaries that, when taken together, would constitute a Significant
      Subsidiary) in an involuntary case; or

     

    (ii) appoints
      a receiver, interim receiver, receiver and manager, liquidator, trustee or
      custodian of the Company, any of its Significant Subsidiaries (or any group
      of
      Subsidiaries that, when taken together, would constitute a Significant
      Subsidiary) for all or substantially all of the property of the Company, any
      of
      its Significant Subsidiaries (or any group of Subsidiaries that, when taken
      together, would constitute a Significant Subsidiary); or

     

    (iii) orders
      the liquidation of the Company, any of its Significant Subsidiaries (or any
      group of Subsidiaries that, when taken together, would constitute a Significant
      Subsidiary);

     

    and
      such
      order or decree remains unstayed and in effect for 60 consecutive
      days;

     

    (h) a
      default
      under any Debt by the Company or any of its Subsidiaries that results in
      acceleration of the maturity of such Debt, or failure to pay any such Debt
      when
      due, in an aggregate amount greater than $4.0 million or its foreign currency
      equivalent at the time;

     

    (i) any
      legal
      proceedings in respect of, or judgment or judgments for, the payment of money
      in
      an aggregate amount potentially in excess of $4.0 million (or its foreign
      currency equivalent at the time) that shall be instituted or rendered against
      the Company or any of its Subsidiaries;

     

    (j) any
      Guarantee ceases to be in full force and effect (other than in accordance with
      the terms of such Guarantee) or any Guarantor or a group of Guarantors that,
      taken as a whole, would constitute a Significant Subsidiary denies or disaffirms
      its obligations under its Guarantee;

     

    (k) the
      Company or the Operating Subsidiaries amends or modifies their respective
      constitutive documents in such a manner that would have a Material Adverse
      Effect or engages any business other than a Related Business;

     

    (l) 
      the
      Indenture, the Notes, any Guarantee or any loan made directly or indirectly
      from
      the Company to the Operating Subsidiaries, shall be (A) declared by any
      Governmental Authority to be illegal or unenforceable or (B) terminated prior
      to
      its scheduled termination date;

     

    (m) (i)
      the
      confiscation, expropriation or nationalization by any Governmental Authority
      of
      any material Property of the Company or any of its Subsidiaries, provided
      that for
      the purposes of this paragraph (i), the determination of what is “material”
shall be determined by the holders of not less than 25% in aggregate principal
      amount of the Notes then outstanding; or (ii) if such revocation or repudiation
      could reasonably be expected to have a Material Adverse Effect, the revocation
      or repudiation by any Governmental Authority of any previously granted
      Governmental Approval to the Operating Subsidiaries that is material to the
      operation of the Related Business; or (iii) the imposition or introduction
      of
      material and discriminatory taxes, tariffs, royalties, customs or excise duties
      imposed on the Operating Subsidiaries, or the material and discriminatory
      withdrawal or suspension of material privileges or specifically granted material
      rights of a fiscal nature; or

     

    
      
        
        

      

      
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    (n) failure
      by the Company or any Affiliate thereof (other than any Person who is an
      Affiliate solely because such Person is a holder of Notes) to comply with any
      of
      the agreements in the Investor Rights Agreement if such failure continues for
      30
      days after written notice is given to the Company by the Trustee or the holders
      of not less than 25% in aggregate principal amount of the Notes then outstanding
      specifying the default, demanding that it be remedied and stating that such
      notice is a “Notice of Default;”

     

    then,
      and
      in each and every such case (other than an Event of Default specified in
Section
      6.01(f)
      or
6.01(g)),
      unless
      the principal of all of the Notes shall have already become due and payable,
      either the Trustee or the holders of not less than twenty-five percent (25%)
      in
      aggregate principal amount of the Notes then outstanding hereunder determined
      in
      accordance with Section
      12.04,
      by
      notice in writing to the Company (and to the Trustee if given by Noteholders),
      may declare the principal of all the Notes, the Interest accrued thereon to
      be
      due and payable immediately, and upon any such declaration the same shall become
      and shall be immediately due and payable, anything in this Indenture or in
      the
      Notes contained to the contrary notwithstanding. If an Event of Default
      specified in Section
      6.01(f)
      or
6.01(g)
      occurs,
      the principal of all the Notes and the Interest accrued thereon shall be
      immediately and automatically due and payable without necessity of further
      action. 

     

    This
      provision, however, is subject to the conditions that if, at any time after
      the
      principal of the Notes shall have been so declared due and payable, and before
      any judgment or decree for the payment of the monies due shall have been
      obtained or entered as hereinafter provided, (i) the Company shall pay or shall
      deposit with the Trustee a sum sufficient to pay all matured installments of
      Interest upon all Notes and the principal of any and all Notes which shall
      have
      become due otherwise than by acceleration (with interest on overdue installments
      of Interest (to the extent that payment of such interest is enforceable under
      applicable law) and on such principal at the rate borne by the Notes, to the
      date of such payment or deposit) and amounts due to the Trustee pursuant to
      Section
      7.06,
      (ii) if
      any and all defaults under this Indenture, other than the nonpayment of
      principal of and accrued Interest on Notes which shall have become due by
      acceleration, shall have been cured or waived pursuant to Section
      6.07,
      then
      and in every such case the holders of a majority in aggregate principal amount
      of the Notes then outstanding, by written notice to the Company and to the
      Trustee, may waive all Defaults or Events of Default and rescind and annul
      such
      declaration and its consequences; but no such waiver or rescission and annulment
      shall extend to or shall affect any subsequent Default or Event of Default,
      or
      shall impair any right consequent thereon. The Company shall notify in writing
      a
      Responsible Officer of the Trustee, promptly upon becoming aware thereof, of
      any
      Event of Default.

     

    
      
        
        

      

      
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    In
      case
      the Trustee shall have proceeded to enforce any right under this Indenture
      and
      such proceedings shall have been discontinued or abandoned because of such
      waiver or rescission and annulment or for any other reason or shall have been
      determined adversely to the Trustee, then and in every such case the Company,
      the holders of Notes, and the Trustee shall be restored respectively to their
      several positions and rights hereunder, and all rights, remedies and powers
      of
      the Company, the holders of Notes, and the Trustee shall continue as though
      no
      such proceeding had been taken.

     

    Section
      6.02.   Payments
      of Notes on Default; Suit Therefor.
      

     

    The
      Company covenants that (a) in case default shall be made in the payment of
      any
      installment of Interest upon any of the Notes as and when the same shall become
      due and payable, and such default shall have continued for a period of thirty
      (30) days, or (b) in case default shall be made in the payment of the principal
      of any of the Notes as and when the same shall have become due and payable,
      whether at maturity of the Notes or in connection with any redemption or
      repurchase, by or under this Indenture by declaration or otherwise, then, upon
      demand of the Trustee, the Company will pay to the Trustee, for the benefit
      of
      the holders of the Notes, the whole amount that then shall have become due
      and
      payable on all such Notes for principal or Interest, as the case may be, with
      interest upon the overdue principal and (to the extent that payment of such
      interest is enforceable under applicable law) upon the overdue installments
      of
      Interest at the rate borne by the Notes, plus 1% and, in addition thereto,
      such
      further amount as shall be sufficient to cover the costs and expenses of
      collection, including compensation to the Trustee, its agents, attorneys and
      counsel, and all other amounts due the Trustee under Section
      7.06.
      Until
      such demand by the Trustee, the Company may pay the principal of and Interest
      on
      the Notes to the registered holders, whether or not the Notes are
      overdue.

     

    In
      case
      the Company shall fail forthwith to pay such amounts upon such demand, the
      Trustee, in its own name and as trustee of an express trust, shall be entitled
      and empowered to institute any actions or proceedings at law or in equity for
      the collection of the sums so due and unpaid, and may prosecute any such action
      or proceeding to judgment or final decree, and may enforce any such judgment
      or
      final decree against the Company or any other obligor on the Notes and collect
      in the manner provided by law out of the property of the Company or any other
      obligor on the Notes wherever situated the monies adjudged or decreed to be
      payable.

     

    In
      case
      there shall be pending proceedings for the bankruptcy or for the reorganization
      of the Company or any other obligor on the Notes under any Bankruptcy Law,
      or in
      case a receiver, assignee or trustee in bankruptcy or reorganization,
      liquidator, sequestrator or similar official shall have been appointed for
      or
      taken possession of the Company or such other obligor, the property of the
      Company or such other obligor, or in the case of any other judicial proceedings
      relative to the Company or such other obligor upon the Notes, or to the
      creditors or property of the Company or such other obligor, the Trustee,
      irrespective of whether the principal of the Notes shall then be due and payable
      as therein expressed or by declaration or otherwise and irrespective of whether
      the Trustee shall have made any demand pursuant to the provisions of this
      Section, shall be entitled and empowered, by intervention in such proceedings
      or
      otherwise, to file and prove a claim or claims for the whole amount of principal
      and Interest owing and unpaid in respect of the Notes, and, in case of any
      judicial proceedings, to file such proofs of claim and other papers or documents
      as may be necessary or advisable in order to have the claims of the Trustee
      and
      of the Noteholders allowed in such judicial proceedings relative to the Company
      or any other obligor on the Notes, its or their creditors, or its or their
      property, and to collect and receive any monies or other property payable or
      deliverable on any such claims, and to distribute the same after the deduction
      of any amounts due the Trustee under Section
      7.06,
      and to
      take any other action with respect to such claims, including participating
      as a
      member of any official committee of creditors, as it reasonably deems necessary
      or advisable, and, unless prohibited by law or applicable regulations, and
      any
      receiver, assignee or trustee in bankruptcy or reorganization, liquidator,
      custodian or similar official is hereby authorized by each of the Noteholders
      to
      make such payments to the Trustee, and, in the event that the Trustee shall
      consent to the making of such payments directly to the Noteholders, to pay
      to
      the Trustee any amount due it for compensation, expenses, advances and
      disbursements, including counsel fees and expenses incurred by it up to the
      date
      of such distribution. To the extent that such payment of compensation, expenses,
      advances and disbursements out of the estate in any such proceedings shall
      be
      denied for any reason, payment of the same shall be secured by a lien on, and
      shall be paid out of, any and all distributions, dividends, monies, securities
      and other property which the holders of the Notes may be entitled to receive
      in
      such proceedings, whether in liquidation or under any plan of reorganization
      or
      arrangement or otherwise.

     

    
      
        
        

      

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

     

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

     

    Section
      6.03.   Application
      of Monies Collected by Trustee.
      

     

    Any
      monies or property collected by the Trustee pursuant to this Article shall
      be
      applied in the order following, at the date or dates fixed by the Trustee for
      the distribution of such monies or property, upon presentation of the several
      Notes and either (i) stamping thereon the payment, if only partially paid,
      or
      (ii) upon surrender thereof, if fully paid.

     

    FIRST:
      To
      the payment of all amounts due the Trustee under Section
      7.06
      in
      connection with the Trustee’s performance of its duties under this Indenture or
      the Notes;

     

    SECOND:
      In case the principal of the outstanding Notes shall not have become due and
      be
      unpaid, to the payment of Interest on the Notes in default in the order of
      the
      maturity of the installments of such Interest, with interest (to the extent
      that
      such interest has been collected by the Trustee) upon the overdue installments
      of Interest at the rate specified in the Notes, such payments to be made ratably
      to the Persons entitled thereto;

     

    
      
        
        

      

      
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    THIRD:
      In
      case the principal of the outstanding Notes shall have become due, by
      declaration or otherwise, and be unpaid to the payment of the whole amount
      then
      owing and unpaid upon the Notes for principal and Interest, with Interest on
      the
      overdue principal and (to the extent that such Interest has been collected
      by
      the Trustee) upon overdue installments of Interest at the rate specified in
      the
      Notes, and in case such monies shall be insufficient to pay in full the whole
      amounts so due and unpaid upon the Notes, then to the payment of such principal
      and Interest without preference or priority of principal over Interest, or
      of
      Interest over principal, or of any installment of Interest over any other
      installment of Interest, or of any Note over any other Note, ratably to the
      aggregate of such principal and accrued and unpaid Interest; and

     

    FOURTH:
      To the payment of the remainder, if any, to the Company or the Guarantors or to
      whomever may be lawfully entitled thereto.

     

    Section
      6.04.   Proceedings
      by Noteholder.
      

     

    No
      holder
      of any Note shall have any right by virtue of or by reference to any provision
      of this Indenture to institute any suit, action or proceeding in equity or
      at
      law upon or under or with respect to this Indenture, or for the appointment
      of a
      receiver, trustee, liquidator, custodian or other similar official, or for
      any
      other remedy hereunder, unless (a) such holder previously shall have given
      to
      the Trustee written notice of an Event of Default and of the continuance
      thereof, as hereinbefore provided, (b) the holders of not less than twenty-five
      percent (25%) in aggregate principal amount of the Notes then outstanding shall
      have made written request upon the Trustee to institute such action, suit or
      proceeding in its own name as Trustee hereunder and shall have offered to the
      Trustee such security or indemnity as it may require against the costs, expenses
      and liabilities to be incurred therein or thereby, and the Trustee for sixty
      (60) days after its receipt of such notice, request and offer of indemnity
      shall
      have neglected or refused to institute any such action, suit or proceeding
      and
      no direction inconsistent with such written request shall have been given to
      the
      Trustee pursuant to Section
      6.07;
      it
      being understood and intended, and being expressly covenanted by the taker
      and
      holder of every Note with every other taker and holder and the Trustee, that
      no
      one or more holders of Notes shall have any right in any manner whatever by
      virtue of or by reference to any provision of this Indenture to affect, disturb
      or prejudice the rights of any other holder of Notes, or to obtain or seek
      to
      obtain priority over or preference to any other such holder, or to enforce
      any
      right under this Indenture, except in the manner herein provided and for the
      equal, ratable and common benefit of all holders of Notes (except as otherwise
      provided herein). For the protection and enforcement of this Section each and
      every Noteholder and the Trustee shall be entitled to such relief as can be
      given either at law or in equity.

     

    Notwithstanding
      any other provision of this Indenture and any provision of any Note, the right
      of any holder of any Note to receive payment of the principal of (including
      the
      purchase price upon an Offer to Purchase or the repurchase price, in each case
      pursuant to Article
      3)
      and
      accrued Interest on such Note, on or after the respective due dates expressed
      in
      such Note or in the event of an Offer to Purchase or a repurchase, as the case
      may be, or to institute suit for the enforcement of any such payment on or
      after
      such respective dates against the Company shall not be impaired or affected
      without the consent of such holder.

     

    
      
        
        

      

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

     

    Section
      6.05.   Proceedings
      by Trustee.
      

     

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

     

    Section
      6.06.   Remedies
      Cumulative and Continuing.
      

     

    Except
      as
      provided in Section
      2.06,
      all
      powers and remedies given by this Article to the Trustee or to the Noteholders
      shall, to the extent permitted by law, be deemed cumulative and not exclusive
      of
      any thereof or of any other powers and remedies available to the Trustee or
      the
      holders of the Notes, by judicial proceedings or otherwise, to enforce the
      performance or observance of the covenants and agreements contained in this
      Indenture, and no delay or omission of the Trustee or of any holder of any
      of
      the Notes to exercise any right or power accruing upon any Default or Event
      of
      Default occurring and continuing as aforesaid shall impair any such right or
      power, or shall be construed to be a waiver of any such default or any
      acquiescence therein, and, subject to the provisions of Section
      6.04,
      every
      power and remedy given by this Article or by law to the Trustee or to the
      Noteholders may be exercised from time to time, and as often as shall be deemed
      expedient, by the Trustee or by the Noteholders.

     

    Section
      6.07.   Direction
      of Proceedings and Waiver of Defaults by Majority of Noteholders.
      

     

    The
      holders of a majority in aggregate principal amount of the Notes at the time
      outstanding determined in accordance with Section
      12.04
      shall
      have the right to direct the time, method and place of conducting any proceeding
      for any remedy available to the Trustee or exercising any trust or power
      conferred on the Trustee; provided
      that (a)
      such direction shall not be in conflict with any rule of law or with this
      Indenture, (b) the Trustee may take any other action which is not inconsistent
      with such direction, (c) the Trustee may decline to take any action that would
      benefit some Noteholder to the detriment of other Noteholders and (d) the
      Trustee may decline to take any action that would involve the Trustee in
      personal liability. Subject to Section
      6.01,
      the
      holders of a majority in aggregate principal amount of the Notes at the time
      outstanding determined in accordance with Section
      12.04
      may, on
      behalf of the holders of all of the Notes, waive any past Default or Event
      of
      Default hereunder and its consequences except (i) a default in the payment
      of
      Interest on, or the principal of, the Notes, (ii) a failure by the Company
      to
      convert any Notes into Common Stock, (iii) a default in the payment of the
      purchase price pursuant to Section
      3.02
      or (iv)
      a default in respect of a covenant or provisions hereof which under Article
      8
      cannot
      be modified or amended without the consent of the holders of each or all of
      the
      Notes then outstanding or affected thereby. Upon any such waiver, the Company,
      the Trustee and the holders of the Notes shall be restored to their former
      positions and rights hereunder; but no such waiver shall extend to any
      subsequent or other Default or Event of Default or impair any right consequent
      thereon. Whenever any Default or Event of Default hereunder shall have been
      waived as permitted by this Section, said Default or Event of Default shall
      for
      all purposes of the Notes and this Indenture be deemed to have been cured and
      to
      be not continuing; but no such waiver shall extend to any subsequent or other
      Default or Event of Default or impair any right consequent thereon.

     

    
      
        
        

      

      
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    Section
      6.08.   Notice
      of Default.
      

     

    If
      the
      Trustee receives notice of any Default or Event of Default from the Company,
      the
      Trustee shall mail to all Noteholders, as the names and addresses of such
      holders appear upon the Security Register, Notice of the Default or Event of
      Default within 90 days after it occurs, unless the Default or Event of Default
      shall have been cured or waived before the giving of such notice; provided
      that
      except in the case of default in the payment of the principal of or Interest
      on
      any of the Notes, the Trustee shall be protected in withholding such notice
      if
      and so long as a trust committee of directors and/or Responsible Officers of
      the
      Trustee in good faith determines that the withholding of such notice is in
      the
      interests of the Noteholders.

     

    Section
      6.09.   Undertaking
      to Pay Costs.
      

     

    All
      parties to this Indenture agree, and each holder of any Note by his acceptance
      thereof shall be deemed to have agreed, that any court may, in its discretion,
      require, in any suit for the enforcement of any right or remedy under this
      Indenture, or in any suit against the Trustee for any action taken or omitted
      by
      it as Trustee, the filing by any party litigant in such suit of an undertaking
      to pay the costs of such suit and that such court may in its discretion assess
      reasonable costs, including reasonable attorneys’ fees and expenses, against any
      party litigant in such suit, having due regard to the merits and good faith
      of
      the claims or defenses made by such party litigant; provided
      that the
      provisions of this Section (to the extent permitted by law) shall not apply
      to
      any suit instituted by the Trustee, to any suit instituted by any Noteholder,
      or
      group of Noteholders, holding in the aggregate more than ten percent in
      principal amount of the Notes at the time outstanding determined in accordance
      with Section
      12.04,
      or to
      any suit instituted by any Noteholder for the enforcement of the payment of
      the
      principal of or Interest on any Note on or after the due date expressed in
      such
      Note or to any suit for the enforcement of the right to convert any Note in
      accordance with the provisions of Article
      14.

     

    ARTICLE
      7

     

    THE
      TRUSTEE

     

    Section
      7.01.   Duties
      and Responsibilities of Trustee.
      

     

    The
      Trustee, prior to the occurrence of an Event of Default and after the curing
      of
      all Events of Default which may have occurred, undertakes to perform such duties
      and only such duties as are specifically set forth in this Indenture. In case
      an
      Event of Default has occurred (which has not been cured or waived), the Trustee
      shall exercise such of the rights and powers vested in it by this Indenture,
      and
      use the same degree of care and skill in their exercise, as a prudent person
      would exercise or use under the circumstances in the conduct of such person’s
      own affairs.

     

    
      
        
        

      

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

     

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

     

    (i) the
      duties and obligations of the Trustee shall be determined solely by the express
      provisions of this Indenture, and the Trustee shall not be liable except for
      the
      performance of such duties and obligations as are specifically set forth in
      this
      Indenture and no implied covenants, duties or obligations shall be read into
      this Indenture against the Trustee; and

     

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

     

    (b) the
      Trustee shall not be liable for any error of judgment made in good faith by
      a
      Responsible Officer or Officers of the Trustee, unless the Trustee was negligent
      in ascertaining the pertinent facts;

     

    (c) the
      Trustee shall not be liable with respect to any action taken or omitted to
      be
      taken by it in good faith in accordance with the written direction of the
      holders of not less than a majority in principal amount of the Notes at the
      time
      outstanding determined as provided in Section
      12.04
      relating
      to the time, method and place of conducting any proceeding for any remedy
      available to the Trustee, or exercising any trust or power conferred upon the
      Trustee under this Indenture;

     

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

     

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

     

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

     

    
      
        
        

      

      
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    (g) the
      Trustee shall not be deemed to have knowledge of any Default or Event of Default
      hereunder unless a Responsible Officer of the Trustee at the Corporate Trust
      Office shall have been notified in writing of such Default or Event of Default
      by the Company or the holders of at least 25% in aggregate principal amount
      of
      the Notes.

     

    None
      of
      the provisions contained in this Indenture shall require the Trustee to expend
      or risk its own funds or otherwise incur personal financial liability in the
      performance of any of its duties or in the exercise of any of its rights or
      powers, if there is reasonable ground for believing that the repayment of such
      funds or adequate indemnity against such risk or liability is not reasonably
      assured to it.

     

    Section
      7.02.   Rights
      of Trustee.
      

     

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

     

    (b) Any
      request, direction, order or demand of the Company mentioned herein shall be
      sufficiently evidenced by an Officers’ Certificate (unless other evidence in
      respect thereof be herein specifically prescribed); and any resolution of the
      Board of Directors may be evidenced to the Trustee by a copy thereof certified
      by the Secretary or an Assistant Secretary of the Company; the Trustee shall
      be
      entitled to accept such certificate as sufficient and conclusive evidence of
      the
      fulfillment of the applicable conditions precedent, in which event it shall
      be
      conclusive and binding on the Noteholders.

     

    (c) The
      Trustee may consult with counsel of its own selection and any advice or Opinion
      of Counsel shall be full and complete authorization and protection in respect
      of
      any action taken or omitted by it hereunder in good faith and in accordance
      with
      such advice or Opinion of Counsel; the Trustee shall be entitled to accept
      such
      opinion as sufficient and conclusive evidence of the fulfillment of the
      applicable conditions precedent, in which event it shall be conclusive and
      binding on the Noteholders.

     

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

     

    (e) The
      Trustee shall not be bound to make any investigation into the facts or matters
      stated in any resolution, certificate, statement, instrument, opinion, report,
      notice, request, direction, consent, order, bond, debenture or other paper
      or
      document, but the Trustee may make such further inquiry or investigation into
      such facts or matters as it may see fit, and, if the Trustee shall determine
      to
      make such further inquiry or investigation, it shall be entitled to examine
      the
      books, records and premises of the Company, personally or by agent or attorney
      at the expense of the Company, and shall incur no liability of any kind by
      reason of such inquiry or investigation.

     

    
      
        
        

      

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

     

    (g) The
      Trustee shall not be liable for any action taken, suffered or omitted to be
      taken by it in good faith and reasonably believed by it to be authorized or
      within the discretion or rights or powers conferred upon it by this
      Indenture.

     

    (h) 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
      each agent, custodian and other Person employed to act hereunder.

     

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

     

    (j) Any
      permissive right or authority granted to the Trustee shall not be construed
      as a
      mandatory duty.

     

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

     

    (l) The
      Trustee shall have no duty to inquire as to the performance of the Company’s
      covenants herein.

     

    (m) Neither
      the Trustee nor any clearing system through which the Notes are traded shall
      have any obligation or duty to monitor, determine or inquire as to compliance,
      and shall not be responsible or liable for compliance, with restrictions on
      transfer, exchange, redemption, purchase or repurchase, as applicable, of
      minimum denominations imposed hereunder or under applicable law or regulation
      with respect of any transfer, exchange, redemption, purchase or repurchase,
      as
      applicable, of interest in any Note.

     

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

     

    (o) The
      Trustee is entitled to enter into business transactions with the Company, its
      Affiliates or any entity related thereto without accounting for any
      profit.

     

    
      
        
        

      

      
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    (p) In
      connection with the exercise of its functions (including but not limited to
      those in relation to any proposed modification, authorization, waiver or
      substitution), the Trustee will have regard to the interests of the Noteholders
      as a class, and will not have regard to the consequences of such exercise for
      individual Noteholders. The Trustee will not be entitled to require, nor will
      any Noteholder be entitled to claim, from the Company or any Guarantor, any
      indemnification or payment in respect of any tax consequences of any such
      exercise upon individual Noteholders.

     

    (q) The
      Trustee may refrain from taking any action in any jurisdiction if the taking
      of
      such action in that jurisdiction would, in its opinion based upon legal advice
      in the relevant jurisdiction, be contrary to any law of that jurisdiction or,
      to
      the extent applicable, of the State of New York. Furthermore, the Trustee may
      also refrain from taking such action if it would otherwise render it liable
      to
      any person in that jurisdiction or the State of New York or if, in its opinion
      based upon such legal advice, it would not have the power to do the relevant
      thing in that jurisdiction by virtue of any applicable law in that jurisdiction
      or in the State of New York or if it is determined by any court or other
      competent authority in that jurisdiction or in the State of New York that it
      does not have such power.

     

    Notwithstanding
      any provision herein to the contrary, the Trustee shall not be obligated to
      take
      any action with respect to an Event of Default pursuant to Sections 6.01(k)
      and
6.01(m),
      unless
      it has been first notified to do so in writing by the Holders of at least 25%
      in
      aggregate principal amount of the outstanding Notes.

     

    Section
      7.03.   No
      Responsibility for Recitals, Etc.
      

     

    The
      recitals contained herein and in the Notes (except in the Trustee’s certificate
      of authentication) shall be taken as the statements of the Company, and the
      Trustee assumes no responsibility for the correctness of the same. The Trustee
      makes no representations as to the validity or sufficiency of this Indenture
      or
      of the Notes. The Trustee shall not be accountable for the use or application
      by
      the Company of any Notes or the proceeds of any Notes authenticated and
      delivered by the Trustee in conformity with the provisions of this
      Indenture.

     

    Section
      7.04.   Trustee,
      Paying Agents, Conversion Agents, Common Depositary or Registrar May Own
      Notes.
      

     

    The
      Trustee, any paying agent, any conversion agent, Common Depositary or Registrar,
      in its individual or any other capacity, may become the owner or pledgee of
      Notes with the same rights it would have if it were not Trustee, paying agent,
      conversion agent, Common Depositary or Registrar.

     

    Section
      7.05.   Monies
      to Be Held in Trust.
      

     

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

     

    
      
        
        

      

      
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    Section
      7.06.   Compensation
      and Expenses of Trustee.
      

     

    The
      Company and each Guarantor, jointly and severally, covenants and agrees to
      pay
      to the Trustee from time to time, and the Trustee shall be entitled to, such
      compensation for all services rendered by it hereunder in any capacity (which
      shall not be limited by any provision of law in regard to the compensation
      of a
      trustee of an express trust) as mutually agreed to from time to time in writing
      between the Company and the Trustee, and the Company and each Guarantor, jointly
      and severally, will pay or reimburse the Trustee upon its request for all
      expenses, disbursements and advances incurred or made by the Trustee in
      accordance with any of the provisions of this Indenture (including the
      compensation and the expenses and disbursements of its counsel and of all
      Persons not regularly in its employ), except any such expense, disbursement
      or
      advance as shall be determined to have been caused by its own gross negligence
      or willful misconduct. The Company and each Guarantor, jointly and severally,
      also covenants to indemnify the Trustee and any predecessor Trustee (or any
      officer, director or employee of the Trustee) in any capacity under this
      Indenture (which, for the avoidance of doubt, includes its duties as paying
      agent, conversion agent, Common Depositary or Registrar) and its agents and
      any
      authenticating agent for, and to hold them harmless against, any and all loss,
      liability, damage, claim or expense, including taxes (other than taxes based
      on
      the income of the Trustee) incurred without gross negligence, bad faith or
      willful misconduct on the part of the Trustee or such officers, directors,
      employees and agents or authenticating agent, as the case may be, and arising
      out of or in connection with the acceptance or administration of this trust
      or
      in any other capacity hereunder, including the costs and expenses of defending
      themselves against any claim (whether asserted by the Company, any holder or
      any
      other Person) of liability in the premises. The obligations of the Company
      under
      this Section to compensate or indemnify the Trustee and to pay or reimburse
      the
      Trustee for expenses, disbursements and advances shall be secured by a lien
      prior to that of the Notes upon all property and funds held or collected by
      the
      Trustee as such, except funds held in trust for the benefit of the holders
      of
      particular Notes. The obligation of the Company under this Section shall survive
      the satisfaction and discharge of this Indenture pursuant to Article
      11
      hereof,
      the termination of this Indenture, the resignation or removal of the Trustee
      or
      payment in full of the Notes through the expiration of the applicable statute
      of
      limitations.

     

    To
      secure
      the Company’s payment obligations in this Section, the Trustee shall have a Lien
      prior to the Notes on all money or property held or collected by the Trustee,
      except that held in trust to pay principal, premium, if any, and interest on
      particular Notes. Such Lien shall survive the satisfaction and discharge of
      this
      Indenture pursuant to Article
      11
      hereof,
      the termination of this Indenture, the resignation or removal of the Trustee
      or
      payment in full of the Notes through the expiration of the applicable statute
      of
      limitations.

     

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

     

    Section
      7.07.   Eligibility
      of Trustee.
      

     

    
      
        
        

      

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

     

    Section
      7.08.   Resignation
      or Removal of Trustee.

     

    (a) The
      Trustee may at any time resign by giving written notice of such resignation
      to
      the Company and to the holders of Notes. Upon receiving such notice of
      resignation, the Company shall promptly appoint a successor trustee by written
      instrument, in duplicate, executed by order of the Board of Directors, one
      copy
      of which instrument shall be delivered to the resigning Trustee and one copy
      to
      the successor trustee. If no successor trustee shall have been so appointed
      and
      have accepted appointment sixty (60) days after the mailing of such notice
      of
      resignation to the Noteholders, the resigning Trustee may, upon ten (10)
      Business Days’ notice to the Company and the Noteholders, petition, at the
      expense of the Company, any court of competent jurisdiction for the appointment
      of a successor trustee, or, any Noteholder who has been a bona fide holder
      of a
      Note or Notes for at least six (6) months may, subject to the provisions of
      Section
      6.09,
      on
      behalf of himself and all others similarly situated, petition any such court
      for
      the appointment of a successor trustee. Such court may thereupon, after such
      notice, if any, as it may deem proper and prescribe, appoint a successor
      trustee.

     

    (b) In
      case
      at any time any of the following shall occur:

     

    (i) the
      Trustee shall cease to be eligible in accordance with the provisions of
Section
      7.09
      and
      shall fail to resign after written request therefor by the Company or by any
      such Noteholder; or

     

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

     

    then,
      in
      any such case, the Company may remove the Trustee and appoint a successor
      trustee by written instrument, in duplicate, executed by order of the Board
      of
      Directors, one copy of which instrument shall be delivered to the Trustee so
      removed and one copy to the successor trustee, or, subject to the provisions
      of
Section
      6.09,
      any
      Noteholder who has been a bona fide holder of a Note or Notes for at least
      six
      (6) months may, on behalf of himself and all others similarly situated, petition
      any court of competent jurisdiction for the removal of the Trustee and the
      appointment of a successor trustee; provided
      that if
      no successor Trustee shall have been appointed and have accepted appointment
      sixty (60) days after either the Company or such Noteholder has removed the
      Trustee, or the Trustee resigns, the Trustee so removed may petition, at the
      expense of the Company, any court of competent jurisdiction for an appointment
      of a successor trustee. Such court may thereupon, after such notice, if any,
      as
      it may deem proper and prescribe, remove the Trustee and appoint a successor
      trustee.

     

    
      
        
        

      

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

     

    (d) Any
      resignation or removal of the Trustee and appointment of a successor trustee
      pursuant to any of the provisions of this Section shall become effective upon
      acceptance of appointment by the successor trustee as provided in Section
      7.09.

     

    (e) Notwithstanding
      the replacement of the Trustee pursuant to this Section, the Company’s
      obligations under Section
      7.06
      shall
      continue for the benefit of the retiring Trustee.

     

    Section
      7.09.   Acceptance
      by Successor Trustee.
      

     

    Any
      successor trustee appointed as provided in Section
      7.08
      shall
      execute, acknowledge and deliver to the Company and to its predecessor trustee
      an instrument accepting such appointment hereunder, and thereupon the
      resignation or removal of the predecessor trustee shall become effective and
      such successor trustee, without any further act, deed or conveyance, shall
      become vested with all the rights, powers, duties and obligations of its
      predecessor hereunder, with like effect as if originally named as trustee
      herein; but, nevertheless, on the written request of the Company or of the
      successor trustee, the trustee ceasing to act shall, upon payment of any amount
      then due it pursuant to the provisions of Section
      7.06,
      execute
      and deliver an instrument transferring to such successor trustee all the rights
      and powers of the trustee so ceasing to act. Upon request of any such successor
      trustee, the Company shall execute any and all instruments in writing for more
      fully and certainly vesting in and confirming to such successor trustee all
      such
      rights and powers. Any trustee ceasing to act shall, nevertheless, retain a
      lien
      upon all property and funds held or collected by such trustee as such, except
      for funds held in trust for the benefit of holders of particular Notes, to
      secure any amounts then due it pursuant to the provisions of Section
      7.06.

     

    No
      successor trustee shall accept appointment as provided in this Section unless,
      at the time of such acceptance, such successor trustee shall be eligible under
      the provisions of Section
      7.07.

     

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

     

    Section
      7.10.   Succession
      by Merger.
      

     

    
      
        
        

      

      
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    Any
      corporation into which the Trustee may be merged or converted or with which
      it
      may be consolidated, or any corporation resulting from any merger, conversion
      or
      consolidation to which the Trustee shall be a party, or any corporation
      succeeding to all or substantially all of the corporate trust business of the
      Trustee (including any trust created by this Indenture), shall be the successor
      to the Trustee hereunder without the execution or filing of any paper or any
      further act on the part of any of the parties hereto, provided
      that in
      the case of any corporation succeeding to all or substantially all of the
      corporate trust business of the Trustee, such corporation shall be eligible
      under the provisions of Section
      7.09.
      The
      Trustee shall provide the Company with a written notice within thirty (30)
      days
      after the closing of such merger, conversion or consolidation.

     

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

     

    Section
      7.11.   Trustee’s
      Application for Instructions from the Company.
      

     

    Any
      application by the Trustee for written instructions from the Company (other
      than
      with regard to any action proposed to be taken or omitted to be taken by the
      Trustee that affects the rights of the holders of the Notes under this
      Indenture) may, at the option of the Trustee, set forth in writing any action
      proposed to be taken or omitted by the Trustee under this Indenture and the
      date
      on and/or after which such action shall be taken or such omission shall be
      effective. The Trustee shall not be liable for any action taken by, or omission
      of, the Trustee in accordance with a proposal included in such application
      on or
      after the date specified in such application (which date shall not be less
      than
      three (3) Business Days after the date any Officer of the Company actually
      receives such application, unless any such Officer shall have consented in
      writing to any earlier date) unless prior to taking any such action (or the
      effective date in the case of an omission), the Trustee shall have received
      written instructions in response to such application specifying the action
      to be
      taken or omitted.

     

    Section
      7.12.   Reports
      by Trustee.
      

     

    (a) Within
      60
      days after each May 15 beginning with the May 15 following the date of this
      Indenture, and for so long as Notes remain outstanding, the Trustee shall mail
      to the holders a brief report dated as of such reporting date with respect
      to
      any of the following events which may have occurred within the previous 12
      months (but if no such event has occurred such date, no report need be
      transmitted).

     

    (i) the
      character and amount of any disbursements made by it, as the Trustee under
      this
      Indenture, which remain unpaid on the date of such report, and for the
      reimbursement of which it claims or may claim a lien or charge, prior to that
      of
      Notes, on property or funds held or collected by it as the Trustee under this
      Indenture, if such disbursements so remaining unpaid aggregate more than
      one-half of 1 per centum of the principal amount of the Notes outstanding on
      such date; and

     

    
      
        
        

      

      
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    (ii) any
      action taken by it in the performance of its duties under this Indenture which
      it has not previously reported and which in its opinion materially affects
      the
      Notes, except action in respect of a default, notice of which has been or is
      to
      be withheld by it in accordance with this Indenture.

     

    (b) A
      copy of
      each report at the time of its mailing to the holders shall be mailed to the
      Company. The Company shall promptly notify the Trustee when the Notes are listed
      on any stock exchange and any delisting thereof.

     

    Section
      7.13.   Certain
      Provisions.

     

    Each
      Noteholder by accepting a Note authorizes and directs on his or her behalf
      the
      Trustee to enter into and to take such actions and to make such acknowledgements
      as are set forth in this Indenture or other documents entered into in connection
      therewith.

     

    ARTICLE
      8

     

    SUPPLEMENTAL
      INDENTURES

     

    Section
      8.01.   Supplemental
      Indentures Without Consent of Noteholders.
      

     

    The
      Company, when authorized by the resolutions of the Board of Directors, and
      the
      Trustee may, from time to time, and at any time enter into an indenture or
      indentures supplemental hereto for one or more of the following
      purposes:

     

    (a) make
      provision with respect to the conversion rights of the holders of Notes pursuant
      to the requirements of Section
      14.05
      and the
      purchase obligations of the Company pursuant to the requirements of Section
      3.02;

     

    (b) to
      convey, transfer, assign, mortgage or pledge to the Trustee as security for
      the
      Notes, any property or assets;

     

    (c) to
      evidence the succession of another Person to the Company, or successive
      successions, and the assumption by the successor Person of the covenants,
      agreements and obligations of the Company pursuant to Article
      11;

     

    (d) to
      add to
      the covenants of the Company such further covenants, restrictions or conditions
      as the Board of Directors and the Trustee shall consider to be for the benefit
      of the holders of Notes, and to make the occurrence, or the occurrence and
      continuance, of a default in any such additional covenants, restrictions or
      conditions a Default or an Event of Default permitting the enforcement of all
      or
      any of the several remedies provided in this Indenture as herein set forth;
      provided
      that, in
      respect of any such additional covenant, restriction or condition, such
      supplemental indenture may provide for a particular period of grace after
      Default (which period may be shorter or longer than that allowed in the case
      of
      other Defaults) or may provide for an immediate enforcement upon such default
      or
      may limit the remedies available to the Trustee upon such Default;

     

    
      
        
        

      

      
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    (e) to
      provide for the issuance under this Indenture of Notes in coupon form (including
      Notes registrable as to principal only) and to provide for exchangeability
      of
      such Notes with the Notes issued hereunder in fully registered form and to
      make
      all appropriate changes for such purpose;

     

    (f) to
      cure
      any ambiguity or to correct or supplement any provision contained herein or
      in
      any supplemental indenture that may be defective or inconsistent with any other
      provision contained herein or in any supplemental indenture, or to make such
      other provisions in regard to matters or questions arising under this Indenture
      that shall not materially adversely affect the interests of the holders of
      the
      Notes;

     

    (g) to
      evidence and provide for the acceptance of appointment hereunder by a successor
      Trustee with respect to the Notes;

     

    (h) add
      additional Guarantees or additional obligors with respect to the Notes or
      release Guarantors from guarantees as permitted by the terms of this Indenture;
      or

     

    (i) to
      increase, from time to time, the per annum interest rate on the Notes for any
      period.

     

    Upon
      the
      written request of the Company, accompanied by a copy of the resolutions of
      the
      Board of Directors certified by its Secretary or Assistant Secretary authorizing
      the execution of any supplemental indenture (in form satisfactory to the
      Trustee), the Trustee is hereby authorized to join with the Company in the
      execution of any such supplemental indenture, to make any further appropriate
      agreements and stipulations that may be therein contained and to accept the
      conveyance, transfer and assignment of any property thereunder; provided
      that the
      Trustee shall not be obligated to, but may in its discretion, enter into any
      supplemental indenture that affects the Trustee’s own rights, duties or
      immunities under this Indenture or otherwise.

     

    Any
      supplemental indenture authorized by the provisions of this Section may be
      executed by the Company and the Trustee without the consent of the holders
      of
      any of the Notes at the time outstanding, notwithstanding any of the provisions
      of Section
      8.02.

     

    Section
      8.02.   Supplemental
      Indenture with Consent of Noteholders.
      

     

    With
      the
      consent (evidenced as provided in Article
      12)
      of the
      holders of a majority in aggregate principal amount of the Notes at the time
      outstanding, the Company, when authorized by the resolutions of the Board of
      Directors, and the Trustee may, from time to time and at any time, enter into
      an
      indenture or indentures supplemental hereto for the purpose of adding any
      provisions to or changing in any manner or eliminating any of the provisions
      of
      this Indenture or any supplemental indenture or of modifying in any manner
      the
      rights of the holders of the Notes; provided
      that no
      such supplemental indenture shall:

     

    (a) extend
      the fixed maturity of any Note; 

     

    
      
        
        

      

      
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    (b) reduce
      the rate or extend the time of payment of Interest thereon; 

     

    (c) reduce
      the principal amount thereof or reduce any amount payable on redemption or
      repurchase thereof; 

     

    (d) change
      the obligation of the Company to repurchase any Note upon the happening of
      a
      Termination of Trading in a manner adverse to the holders of Notes;

     

    (e) impair
      the right of any Noteholder to institute suit for the payment thereof;

     

    (f) make
      the
      principal thereof or Interest thereon payable in any coin or currency other
      than
      that provided in the Notes; 

     

    (g) impair
      the right to convert the Notes into Common Stock or reduce the number of shares
      of Common Stock or any other property receivable by a Noteholder upon conversion
      subject to the terms set forth herein, including Section
      14.05,
      in each
      case, without the consent of the holder of each Note so affected; 

     

    (h) modify
      any of the provisions of this Section or Section
      6.07,
      except
      to increase any such percentage or to provide that certain other provisions
      of
      this Indenture cannot be modified or waived without the consent of the holder
      of
      each Note so affected; 

     

    (i) change
      any obligation of the Company to maintain an office or agency in the places
      and
      for the purposes set forth in Section
      4.02;
      

     

    (j) reduce
      the quorum or voting requirements set forth in Article
      13;
      

     

    (k) subordinate
      the Notes or any Guarantee to any other obligation of the Company or the
      applicable Guarantor; 

     

    (l) release
      any security interest that may have been granted in favor of the holders of
      the
      Notes other than pursuant to the terms of such security interest; 

     

    (m) at
      any
      time after a Change of Control has occurred, change the time at which the Change
      of Control Offer relating thereto must be made or at which the Notes must be
      repurchased pursuant to such Change of Control Offer; 

     

    (n) at
      any
      time after the Company is obligated to make an Asset Sale Offer with the Excess
      Proceeds from Asset Sales, change the time at which such Asset Sale Offer must
      be made or at which the Notes must be repurchased pursuant thereto;

     

    (o) make
      any
      change in any Guarantee that would adversely affect the holders; or

     

    (p) reduce
      the aforesaid percentage of Notes, the holders of which are required to consent
      to any such supplemental indenture, without the consent of the holders of all
      Notes then outstanding.

     

    
      
        
        

      

      
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    Upon
      the
      written request of the Company, accompanied by a copy of the resolutions of
      the
      Board of Directors certified by its Secretary or Assistant Secretary authorizing
      the execution of any such supplemental indenture (in form satisfactory to the
      Trustee), and upon the filing with the Trustee of evidence of the consent of
      Noteholders as aforesaid, the Trustee shall join with the Company in the
      execution of such supplemental indenture unless such supplemental indenture
      affects the Trustee’s own rights, duties or immunities under this Indenture or
      otherwise, in which case the Trustee may in its discretion, but shall not be
      obligated to, enter into such supplemental indenture.

     

    It
      shall
      not be necessary for the consent of the Noteholders under this Section to
      approve the particular form of any proposed supplemental indenture, but it
      shall
      be sufficient if such consent shall approve the substance thereof.

     

    Section
      8.03.   Effect
      of Supplemental Indenture.
      

     

    Upon
      the
      execution of any supplemental indenture pursuant to the provisions of this
      Article, this Indenture shall be and shall be deemed to be modified and amended
      in accordance therewith and the respective rights, limitation of rights,
      obligations, duties and immunities under this Indenture of the Trustee, the
      Company and the holders of Notes shall thereafter be determined, exercised
      and
      enforced hereunder, subject in all respects to such modifications and amendments
      and all the terms and conditions of any such supplemental indenture shall be
      and
      shall be deemed to be part of the terms and conditions of this Indenture for
      any
      and all purposes.

     

    Section
      8.04.   Notation
      on Notes.
      

     

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

     

    Section
      8.05.   Evidence
      of Compliance of Supplemental Indenture to Be Furnished to
      Trustee.
      

     

    Prior
      to
      entering into any supplemental indenture, the Trustee shall be provided with
      an
      Officers’ Certificate and an Opinion of Counsel as conclusive evidence that any
      supplemental indenture executed pursuant hereto complies with the requirements
      of this Article and is otherwise authorized or permitted by this
      Indenture.

     

    ARTICLE
      9

     

    GUARANTEES

     

    Section
      9.01.   Guarantee.

     

    
      
        
        

      

      
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    Subject
      to this Article
      9,
      each
      Guarantor hereby unconditionally guarantees to each holder of a Note
      authenticated and delivered by the Trustee and to the Trustee and its successors
      and assigns: (a) the due and punctual payment of the principal of, premium,
      if
      any, and interest on the Notes, subject to any applicable grace period, whether
      at Stated Maturity, by acceleration, redemption or otherwise, the due and
      punctual payment of interest on the overdue principal of and premium, if any,
      and, to the extent permitted by law, interest, and the due and punctual
      performance of all other obligations of the Company to the holders or the
      Trustee under this Indenture or any other agreement with or for the benefit
      of
      the holders or the Trustee, 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 shall 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 pursuant to Section
      6.01,
      redemption 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.

     

    Each
      Guarantor hereby agrees that its obligations with regard to its Guarantee shall
      be joint and several, unconditional, irrespective of the validity or
      enforceability of the Notes or the obligations of the Company under this
      Indenture, the absence of any action to enforce the same, the recovery of any
      judgment against the Company or any other obligor with respect to this
      Indenture, the Notes or the Obligations of the Company under this Indenture
      or
      the Notes, any action to enforce the same or any other circumstances (other
      than
      complete performance) which might otherwise constitute a legal or equitable
      discharge or defense of a Guarantor. Each Guarantor further, to the extent
      permitted by law, waives and relinquishes all claims, rights and remedies
      accorded by applicable law to guarantors and agrees not to assert or take
      advantage of any such claims, rights or remedies, including but not limited
      to:
      (a) any right to require any of the Trustee, the holders or the Company (each
      a
“Benefited
      Party”),
      as a
      condition of payment or performance by such Guarantor, to (1) proceed against
      the Company, any other guarantor (including any other Guarantor) of the
      Obligations under the Guarantees or any other Person, (2) proceed against or
      exhaust any security held from the Company, any such other guarantor or any
      other Person, (3) proceed against or have resort to any balance of any deposit
      account or credit on the books of any Benefited Party in favor of the Company
      or
      any other Person, or (4) pursue any other remedy in the power of any Benefited
      Party whatsoever; (b) any defense arising by reason of the incapacity, lack
      of
      authority or any disability or other defense of the Company including any
      defense based on or arising out of the lack of validity or the unenforceability
      of the Obligations under the Guarantees or any agreement or instrument relating
      thereto or by reason of the cessation of the liability of the Company from
      any
      cause other than payment in full of the Obligations under the Guarantees; (c)
      any defense based upon any statute or rule of law which provides that the
      obligation of a surety must be neither larger in amount nor in other respects
      more burdensome than that of the principal; (d) any defense based upon any
      Benefited Party’s errors or omissions in the administration of the Obligations
      under the Guarantees, except behavior which amounts to bad faith; (e)(1) any
      principles or provisions of law, statutory or otherwise, which are or might
      be
      in conflict with the terms of the Guarantees and any legal or equitable
      discharge of such Guarantor’s obligations hereunder, (2) the benefit of any
      statute of limitations affecting such Guarantor’s liability hereunder or the
      enforcement hereof, (3) any rights to set-offs, recoupments and counterclaims
      and (4) promptness, diligence and any requirement that any Benefited Party
      protect, secure, perfect or insure any security interest or lien or any property
      subject thereto; (f) notices, demands, presentations, protests, notices of
      protest, notices of dishonor and notices of any action or inaction, including
      acceptance of the Guarantees, notices of Default under the Notes or any
      agreement or instrument related thereto, notices of any renewal, extension
      or
      modification of the Obligations under the Guarantees or any agreement related
      thereto, and notices of any extension of credit to the Company and any right
      to
      consent to any thereof; (g) to the extent permitted under applicable law, the
      benefits of any “One Action” rule and (h) any defenses or benefits that may be
      derived from or afforded by law which limit the liability of or exonerate
      guarantors or sureties, or which may conflict with the terms of the Guarantees.
      Except to the extent expressly provided herein, including Section
      9.05,
      each
      Guarantor hereby covenants that its Guarantee shall not be discharged except
      by
      complete performance of the obligations contained in its Guarantee and this
      Indenture.

     

    
      
        
        

      

      
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    If
      any
      holder or the Trustee is required by any court or otherwise to return to the
      Company, the Guarantors or any custodian, trustee, liquidator or other similar
      official acting in relation to either the Company or the Guarantors, any amount
      paid by either to the Trustee or such holder, the Guarantee of such Guarantor,
      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 Section
      6.01
      hereof
      for the purposes of this 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 Section
      6.01
      hereof,
      such obligations (whether or not due and payable) shall forthwith become due
      and
      payable by the Guarantors for the purpose of this Guarantee. The Guarantors
      shall have the right to seek contribution from any non-paying Guarantor so
      long
      as the exercise of such right does not impair the rights of the holders under
      the Guarantee.

     

    Section
      9.02.   Limitation
      on Guarantor Liability.

     

    (a) Each
      Guarantor, and by its acceptance of Notes, each holder, hereby confirms that
      it
      is the intention of all such parties that the 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 extent applicable to any guarantee.
      To
      effectuate the foregoing intention, the Trustee, the holders and the Guarantors
      hereby irrevocably agree that each Guarantor’s liability shall be that amount
      from time to time equal to the aggregate liability of such Guarantor under
      the
      guarantee, but shall be limited to the lesser of (a) the aggregate amount of
      the
      Company’s obligations under the Notes and this Indenture or (b) the amount, if
      any, which would not have (1) rendered the Guarantor “insolvent” (as such term
      is defined in Bankruptcy Law and in the Debtor and Creditor Law of the State
      of
      New York) or (2) left it with unreasonably small capital at the time its
      guarantee with respect to the Notes was entered into, after giving effect to
      the
      incurrence of existing Debt immediately before such time; provided,
      however,
      it
      shall be a presumption in any lawsuit or proceeding in which a Guarantor is
      a
      party that the amount guaranteed pursuant to the guarantee with respect to
      the
      Notes is the amount described in clause (a) above unless any creditor, or
      representative of creditors of the Guarantor, or debtor in possession or trustee
      in bankruptcy of the Guarantor, otherwise proves in a lawsuit that the aggregate
      liability of the Guarantor is limited to the amount described in clause (b).
      

     

    
      
        
        

      

      
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    (b) In
      making
      any determination as to the solvency or sufficiency of capital of a Guarantor
      in
      accordance with the proviso of Section
      9.02(a),
      the
      right of each Guarantor to contribution from other Guarantors and any other
      rights such Guarantor may have, contractual or otherwise, shall be taken into
      account.

     

    Section
      9.03.   Execution
      and Delivery of Guarantee.

     

    To
      evidence its Guarantee set forth in Section
      9.01,
      each
      Guarantor hereby agrees that a notation of such Guarantee in substantially
      the
      form included in Exhibit
      B
      attached
      hereto 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 its President or one of its Vice
      Presidents.

     

    Each
      Guarantor hereby agrees that its Guarantee set forth in Section
      9.01
      shall
      remain in full force and effect notwithstanding any failure to endorse on each
      Note a notation of such Guarantee.

     

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

     

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

     

    The
      Company hereby agrees that it shall cause each Person that becomes obligated
      to
      provide a Guarantee pursuant to Section
      4.18
      (each, a
“Future
      Guarantor”)
      to
      execute a supplemental indenture in form and substance satisfactory to the
      Trustee, pursuant to which such Person provides the guarantee set forth in
      this
Article
      9
      and
      otherwise assumes the obligations and accepts the rights of a Guarantor under
      this Indenture, in each case with the same effect and to the same extent as
      if
      such Person had been named herein as a Guarantor. The Company also hereby agrees
      to cause each such new Guarantor to evidence its guarantee by endorsing a
      notation of such guarantee on each Note as provided in this
      Section.

     

    Section
      9.04.   Guarantors
      May Consolidate, etc., on Certain Terms.

     

    Except
      as
      otherwise provided in Section
      9.05,
      no
      Guarantor may consolidate with or merge with or into (whether or not such
      Guarantor is the Surviving Person) another Person whether or not affiliated
      with
      such Guarantor unless:

     

    (a) subject
      to Section
      9.05,
      the
      Person formed by or surviving any such consolidation or merger (if other than
      a
      Guarantor or the Company) unconditionally assumes all the obligations of such
      Guarantor, pursuant to a supplemental indenture in form and substance
      satisfactory to the Trustee, under this Indenture, the Guarantee on the terms
      set forth herein or therein; and

     

    
      
        
        

      

      
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    (b) the
      Guarantor complies with the requirements of Article
      5
      hereof.

     

    In
      case
      of any such consolidation, merger, sale or conveyance and upon the assumption
      by
      the successor Person, by supplemental indenture, executed and delivered to
      the
      Trustee and satisfactory in form and substance to the Trustee, of the Guarantee
      endorsed upon the Notes and the due and punctual performance of all of the
      covenants and conditions of this Indenture to be performed by the Guarantor,
      such successor Person shall succeed to and be substituted for the Guarantor
      with
      the same effect as if it had been named herein as a Guarantor. Such successor
      Person thereupon may cause to be signed any or all of the Guarantees to be
      endorsed upon all of the Notes issuable hereunder which theretofore shall not
      have been signed by the Company and delivered to the Trustee. All the Guarantees
      so issued shall in all respects have the same legal rank and benefit under
      this
      Indenture as the Guarantees theretofore and thereafter issued in accordance
      with
      the terms of this Indenture as though all of such Guarantees had been issued
      at
      the date of the execution hereof.

     

    Except
      as
      set forth in Articles
      4
      and
5,
      and
      notwithstanding clauses (a) and (b) above, nothing contained in this Indenture
      or in any of the Notes shall prevent any consolidation or merger of a Guarantor
      with or into the Company 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 Company or another Guarantor.

     

    Section
      9.05.   Releases
      Following Merger, Consolidation or Sale of Assets, Etc.

     

    In
      the
      event of a sale or other disposition of all or substantially all of the assets
      of any Guarantor, by way of merger, consolidation or otherwise, or a sale or
      other disposition of all of the Capital Stock of any Guarantor, in each case
      to
      a Person that is not (either before or after giving effect to such transactions)
      a Subsidiary of the Company, then such Guarantor (in the event of a sale or
      other disposition, by way of merger, consolidation or otherwise, of all of
      the
      Capital Stock of such Guarantor) or the corporation acquiring the property
      (in
      the event of a sale or other disposition of all or substantially all of the
      assets of such Guarantor) shall be released and relieved of any obligations
      under its Guarantee; provided
      that the
      net proceeds of such sale or other disposition shall be applied in accordance
      with the applicable provisions of this Indenture, including without limitation
      Section
      4.12.
      Upon
      delivery by the Company to the Trustee of an Officers’ Certificate and an
      Opinion of Counsel to the effect that such sale or other disposition was made
      by
      the Company in accordance with the provisions of this Indenture, including
      without limitation Section
      4.12,
      the
      Trustee shall execute any documents reasonably required in order to evidence
      the
      release of any Guarantor from its obligations under its Guarantee.

     

    Any
      Guarantor not released from its obligations under its Guarantee shall remain
      liable for the full amount of principal of and interest on the Notes and for
      the
      other obligations of any Guarantor under this Indenture as provided in this
      Article
      9.

     

    
      
        
        

      

      
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    ARTICLE
      10

     

    [RESERVED]

     

    ARTICLE
      11

     

    SATISFACTION
      AND DISCHARGE OF INDENTURE

     

    Section
      11.01.   Discharge
      of Indenture.
      

     

    When
      (a)
      the Company shall deliver to the Trustee for cancellation all Notes theretofore
      authenticated (other than any Notes that have been mutilated, destroyed, lost
      or
      stolen and in lieu of or in substitution for which other Notes shall have been
      authenticated and delivered) and not theretofore canceled, or (b) all the Notes
      not theretofore canceled or delivered to the Trustee for cancellation shall
      have
      become due and payable, or are by their terms to become due and payable within
      three years or are to be called for redemption within three years under
      arrangements satisfactory to the Trustee for the giving of notice of redemption,
      and the Company shall deposit with the Trustee, in trust, funds sufficient
      to
      pay at maturity or upon redemption of all of the Notes (other than any Notes
      that shall have been mutilated, destroyed, lost or stolen and in lieu of or
      in
      substitution for which other Notes shall have been authenticated and delivered)
      not theretofore canceled or delivered to the Trustee for cancellation, including
      principal and Interest due or to become due to such date of maturity or
      redemption date, as the case may be, accompanied by a verification report,
      as to
      the sufficiency of the deposited amount, from an independent certified
      accountant or other financial professional satisfactory to the Trustee, and
      if
      the Company shall also pay or cause to be paid all other sums payable hereunder
      by the Company, and in the case of either clause (a) or (b), no Default or
      Event
      of Default with respect to this Indenture or the Notes shall have occurred
      and
      be continuing on the date of such deposit or shall occur as a result of such
      deposit and such deposit shall not result in a breach or violation of, or
      constitute a default under, any other instrument or agreement to which the
      Company is a party or by which it is bound, then this Indenture shall cease
      to
      be of further effect (except as to (i) remaining rights of registration of
      transfer, substitution and exchange and conversion of Notes, (ii) rights
      hereunder of Noteholders to receive payments of principal of and Interest on
      the
      Notes and the other rights, duties and obligations of Noteholders, as
      beneficiaries hereof with respect to the amounts, if any, so deposited with
      the
      Trustee and (iii) the rights, obligations and immunities of the Trustee
      hereunder), and the Trustee, on written demand of the Company accompanied by
      an
      Officers’ Certificate and an Opinion of Counsel as required by Section
      15.05
      and at
      the cost and expense of the Company, shall execute proper instruments
      acknowledging satisfaction of and discharging this Indenture; the Company,
      however, hereby agrees to reimburse the Trustee for any costs or expenses
      thereafter incurred by the Trustee and to compensate the Trustee for any
      services thereafter rendered by the Trustee in connection with this Indenture
      or
      the Notes. The Trustee shall hold in trust money deposited with it pursuant
      to
      this Article. It shall apply the deposited money through the Paying Agent and
      in
      accordance with this Indenture to the payment of principal of and Interest
      on
      the Notes. 

     

    Section
      11.02.   Deposited
      Monies to Be Held in Trust by Trustee.
      

     

    
      
        
        

      

      
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    Subject
      to Section
      11.04,
      all
      monies deposited with the Trustee pursuant to Section
      11.01
      shall be
      held in trust for the sole benefit of the Noteholders, and such monies shall
      be
      applied by the Trustee to the payment, either directly or through any paying
      agent (including the Company if acting as its own paying agent), to the holders
      of the particular Notes for the payment or redemption of which such monies
      have
      been deposited with the Trustee of all sums due and to become due thereon for
      principal, premium, if any, and Interest.

     

    Section
      11.03.   Paying
      Agent to Repay Monies Held.
      

     

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

     

    Section
      11.04.   Return
      of Unclaimed Monies.
      

     

    Subject
      to the requirements of applicable law, any monies deposited with or paid to
      the
      Trustee for payment of the principal or Interest on Notes and not applied but
      remaining unclaimed by the holders of Notes for two years (or such shorter
      period of time under applicable escheat law) after the date upon which the
      principal of or Interest on such Notes, as the case may be, shall have become
      due and payable, shall be repaid to the Company by the Trustee on demand and
      all
      liability of the Trustee shall thereupon cease with respect to such monies;
      and
      the holder of any of the Notes shall thereafter look only to the Company for
      any
      payment that such holder may be entitled to collect unless an applicable
      abandoned property law designates another Person.

     

    Section
      11.05.   Reinstatement.
      

     

    If
      the
      Trustee or the paying agent is unable to apply any money in accordance with
      Section
      11.02
      by
      reason of any order or judgment of any court or governmental authority
      enjoining, restraining or otherwise prohibiting such application, the Company’s
      obligations under this Indenture and the Notes shall be revived and reinstated
      as though no deposit had occurred pursuant to Section
      11.01
      until
      such time as the Trustee or the paying agent is permitted to apply all such
      money in accordance with Section
      11.02;
      provided
      that, if
      the Company makes any payment of Interest on or principal of any Note following
      the reinstatement of its obligations, the Company shall be subrogated to the
      rights of the holders of such Notes to receive such payment from the money
      held
      by the Trustee or paying agent.

     

    ARTICLE
      12

     

    THE
      NOTEHOLDERS

     

    Section
      12.01.   Action
      by Noteholders.
      

     

    Whenever
      in this Indenture it is provided that the holders of a specified percentage
      in
      aggregate principal amount of the Notes may take any action (including the
      making of any demand or request, the giving of any notice, consent or waiver
      or
      the taking of any other action), the fact that, at the time of taking any such
      action, the holders of such specified percentage have joined therein may be
      evidenced (a) by any instrument or any number of instruments of similar tenor
      executed by Noteholders in person or by agent or proxy appointed in writing,
      or
      (b) by the record of the holders of Notes voting in favor thereof at any meeting
      of Noteholders duly called and held in accordance with the provisions of
Article
      13,
      or (c)
      by a combination of such instrument or instruments and any such record of such
      a
      meeting of Noteholders. Whenever the Company or the Trustee solicits the taking
      of any action by the Noteholders, the Company or the Trustee may fix in advance
      of such solicitation a date as the record date for determining holders entitled
      to take such action. The record date shall be not more than fifteen (15) days
      prior to the date of commencement of solicitation of such action.

     

    
      
        
        

      

      
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    Section
      12.02.   Proof
      of Execution by Noteholders.
      

     

    Subject
      to the provisions of Sections
      7.01,
      7.02
      and
13.04,
      proof
      of the execution of any instrument by a Noteholder or its agent or proxy shall
      be sufficient if made in accordance with such reasonable rules and regulations
      as may be prescribed by the Trustee or in such manner as shall be satisfactory
      to the Trustee. The holding of Notes shall be proved by the registry of such
      Notes or by a certificate of the Registrar.

     

    The
      record of any Noteholders’ meeting shall be proved in the manner provided in
Section
      13.05.

     

    Section
      12.03.   Who
      Are Deemed Absolute Owners.
      

     

    The
      Company, the Trustee, any paying agent, any conversion agent, any Common
      Depositary and any Registrar may deem the Person in whose name such Note shall
      be registered upon the Security Register to be, and may treat it as, the
      absolute owner of such Note (whether or not such Note shall be overdue and
      notwithstanding any notation of ownership or other writing thereon made by
      any
      Person other than the Company or any Registrar) for the purpose of receiving
      payment of or on account of the principal of and Interest on such Note, for
      conversion of such Note and for all other purposes; and neither the Company
      nor
      the Trustee nor any paying agent, Common Depositary, conversion agent nor any
      Registrar shall be affected by any notice to the contrary. All such payments
      so
      made to any holder for the time being, or upon such holder’s order, shall be
      valid and, to the extent of the sum or sums so paid, effectual to satisfy and
      discharge the liability for monies payable upon any such Note.

     

    Section
      12.04.   Company-owned
      Notes Disregarded.
      

     

    In
      determining whether the holders of the requisite aggregate principal amount
      of
      Notes have concurred in any direction, consent, waiver or other action under
      this Indenture, Notes which are owned by the Company or any other obligor on
      the
      Notes or any Affiliate of the Company or any other obligor on the Notes shall
      be
      disregarded and deemed not to be outstanding for the purpose of any such
      determination; provided
      that,
      for the purposes of determining whether the Trustee shall be protected in
      relying on any such direction, consent, waiver or other action, only Notes
      which
      a Responsible Officer knows are so owned shall be so disregarded. Notes so
      owned
      which have been pledged in good faith may be regarded as outstanding for the
      purposes of this Section if the pledgee shall establish to the satisfaction
      of
      the Trustee the pledgee’s right to vote such Notes and that the pledgee is not
      the Company, any other obligor on the Notes or any Affiliate of the Company
      or
      any such other obligor. In the case of a dispute as to such right, any decision
      by the Trustee taken upon the advice of counsel shall be full protection to
      the
      Trustee. Upon request of the Trustee, the Company shall furnish to the Trustee
      promptly an Officers’ Certificate listing and identifying all Notes, if any,
      known by the Company to be owned or held by or for the account of any of the
      above-described Persons, and, subject to Section
      7.01,
      the
      Trustee shall be entitled to accept such Officers’ Certificate as conclusive
      evidence of the facts therein set forth and of the fact that all Notes not
      listed therein are outstanding for the purpose of any such
      determination.

     

    
      
        
        

      

      
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    Section
      12.05.   Revocation
      of Consents; Future Holders Bound.
      

     

    At
      any
      time prior to (but not after) the evidencing to the Trustee, as provided in
      Section
      12.01,
      of the
      taking of any action by the holders of the percentage in aggregate principal
      amount of the Notes specified in this Indenture in connection with such action,
      any holder of a Note which is shown by the evidence to be included in the Notes
      the holders of which have consented to such action may, by filing written notice
      with the Trustee at its Corporate Trust Office and upon proof of holding as
      provided in Section
      12.02,
      revoke
      such action so far as concerns such Note. Except as aforesaid, any such action
      taken by the holder of any Note shall be conclusive and binding upon such holder
      and upon all future holders and owners of such Note and of any Notes issued
      in
      exchange or substitution therefor, irrespective of whether any notation in
      regard thereto is made upon such Note or any Note issued in exchange or
      substitution therefor.

     

    ARTICLE
      13

     

    MEETINGS
      OF NOTEHOLDERS

     

    Section
      13.01.   Purpose
      of Meetings.
      

     

    A
      meeting
      of Noteholders may be called at any time and from time to time pursuant to
      the
      provisions of this Article for any of the following purposes:

     

    (a) to
      give
      any notice to the Company or to the Trustee or to give any directions to the
      Trustee permitted under this Indenture, or to consent to the waiving of any
      Default or Event of Default hereunder and its consequences, or to take any
      other
      action authorized to be taken by Noteholders pursuant to any of the provisions
      of Article
      6;

     

    (b) to
      remove
      the Trustee and nominate a successor trustee pursuant to the provisions of
      Article
      7;

     

    (c) to
      consent to the execution of an indenture or indentures supplemental hereto
      pursuant to the provisions of Section
      8.02;
      or

     

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

     

    Section
      13.02.   Call
      of Meetings by Company or Noteholders.
      

     

    In
      case
      at any time the Company, pursuant to a resolution of its Board of Directors,
      or
      the holders of at least twenty-five percent (25%) in aggregate principal amount
      of the Notes then outstanding, shall have requested the Trustee to call a
      meeting of Noteholders, by written request setting forth in reasonable detail
      the action proposed to be taken at the meeting, and the Trustee shall not have
      mailed the notice of such meeting within twenty (20) days after receipt of
      such
      request, then the Company or such Noteholders may determine the time and the
      place for such meeting and may call such meeting to take any action authorized
      in Section
      13.01
      by
      mailing notice a notice of meeting. Notice of every meeting of the Noteholders,
      setting forth the time and place of such meeting and in general terms the action
      proposed to be taken at such meeting and the establishment of any record date
      pursuant to Section
      12.01,
      shall
      be mailed to holders of Notes at their addresses as they shall appear on the
      Security Register. Such notice shall also be mailed to the Company. Such notices
      shall be mailed not less than twenty (20) nor more than ninety (90) days prior
      to the date fixed for the meeting.

     

    
      
        
        

      

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

     

    Section
      13.03.   Qualifications
      for Voting.
      

     

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

     

    Section
      13.04.   Regulations.
      

     

    Notwithstanding
      any other provisions of this Indenture, the Trustee may make such reasonable
      regulations as it may deem advisable for any meeting of Noteholders, in regard
      to proof of the holding of Notes and of the appointment of proxies, and in
      regard to the appointment and duties of inspectors of votes, the submission
      and
      examination of proxies, certificates and other evidence of the right to vote,
      and such other matters concerning the conduct of the meeting as it shall think
      fit.

     

    The
      Company or the Noteholders calling the meeting, as the case may be, shall,
      by an
      instrument in writing, appoint a temporary chairman of the meeting. A permanent
      chairman and a permanent secretary of the meeting shall be elected by vote
      of
      the holders of a majority in principal amount of the Notes represented at the
      meeting and entitled to vote at the meeting.

     

    Subject
      to the provisions of Section
      12.04,
      at any
      meeting each Noteholder or proxyholder shall be entitled to one vote for each
      $100,000 principal amount of Notes held or represented by him; provided
      that no
      vote shall be cast or counted at any meeting in respect of any Note challenged
      as not outstanding and ruled by the chairman of the meeting to be not
      outstanding. The chairman of the meeting shall have no right to vote other
      than
      by virtue of Notes held by him or instruments in writing as aforesaid duly
      designating him as the proxy to vote on behalf of other Noteholders. Any meeting
      of Noteholders duly called pursuant to the provisions of Section
      13.02
      may be
      adjourned from time to time by the holders of a majority of the aggregate
      principal amount of Notes represented at the meeting, whether or not
      constituting a majority of the aggregate principal amount of Notes outstanding,
      the latter of which shall constitute a quorum, and the meeting may be held
      as so
      adjourned without further notice.

     

    
      
        
        

      

      
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    Section
      13.05.   Voting.
      

     

    The
      vote
      upon any resolution submitted to any meeting of Noteholders shall be by written
      ballot on which shall be subscribed the signatures of the holders of Notes
      or of
      their representatives by proxy and the outstanding principal amount of the
      Notes
      held or represented by them. The permanent chairman of the meeting shall appoint
      two inspectors of votes who shall count all votes cast at the meeting for or
      against any resolution and who shall make and file with the secretary of the
      meeting their verified written reports in duplicate of all votes cast at the
      meeting. A record in duplicate of the proceedings of each meeting of Noteholders
      shall be prepared by the secretary of the meeting, and there shall be attached
      to said record the original reports of the inspectors of votes on any vote
      by
      ballot taken thereat and affidavits by one or more persons having knowledge
      of
      the facts setting forth a copy of the notice of the meeting and showing that
      said notice was mailed as provided in Section
      13.02.
      The
      record shall show the principal amount of the Notes voting in favor of or
      against any resolution. The record shall be signed and verified by the
      affidavits of the permanent chairman and secretary of the meeting and one of
      the
      duplicates shall be delivered to the Company and the other to the Trustee to
      be
      preserved by the Trustee, the latter to have attached thereto the ballots voted
      at the meeting.

     

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

     

    Section
      13.06.   No
      Delay
      of Rights by Meeting.
      

     

    Nothing
      contained in this Article shall be deemed or construed to authorize or permit,
      by reason of any call of a meeting of Noteholders or any rights expressly or
      impliedly conferred hereunder to make such call, any hindrance or delay in
      the
      exercise of any right or rights conferred upon or reserved to the Trustee or
      to
      the Noteholders under any of the provisions of this Indenture or of the
      Notes.

     

    ARTICLE
      14

     

    CONVERSION
      OF NOTES

     

    Section
      14.01.   Right
      to
      Convert.
      

     

    (a) Subject
      to and upon compliance with the provisions of this Indenture, the holder of
      any
      Note shall have the right, at such holder’s option at any time prior to the
      close of business on the date of maturity of the Notes, to convert the principal
      amount of the Note, or any portion of such principal amount which is a multiple
      of $100,000, into fully paid and non-assessable shares of Common Stock (as
      such
      shares shall then be constituted) at the Conversion Rate in effect at such
      time,
      by surrender of the Note so to be converted in whole or in part, together with
      any required funds, under the circumstances described in this Section and in
      the
      manner provided in Section
      14.02.
      

     

    
      
        
        

      

      
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    (b) A
      Note in
      respect of which a holder is electing to exercise its option to require the
      Company to purchase such holder’s Notes upon an Asset Sale Offer, Change of
      Control Offer or Termination of Trading Offer pursuant to Section
      3.02
      may be
      converted only if such holder withdraws its election in accordance with
Section
      3.02.
      A
      holder of Notes is not entitled to any rights of a holder of Common Stock until
      such holder has converted his Notes to Common Stock, and only to the extent
      such
      Notes are deemed to have been converted to Common Stock under this
      Article.

     

    Section
      14.02.   Exercise
      of Conversion Right; Issuance of Common Stock on Conversion; No Adjustment
      for
      Interest or Dividends.
      

     

    In
      order
      to exercise the conversion right with respect to any Note in certificated form,
      the Company must receive at the office or agency of the Company maintained
      for
      that purpose or, at the option of such holder, the Corporate Trust Office,
      such
      Note with the original or facsimile of the form entitled “Conversion
      Notice”
on
      the
      reverse thereof, duly completed and manually signed, together with such Notes
      duly endorsed for transfer, accompanied by the funds, if any, required by this
      Section. Such notice shall also state the name or names (with address or
      addresses) in which the certificate or certificates for shares of Common Stock
      which shall be issuable on such conversion shall be issued, and shall be
      accompanied by transfer or similar taxes, if required pursuant to Section
      14.08.

     

    In
      order
      to exercise the conversion right with respect to any interest in a Global Note,
      the beneficial holder must complete, or cause to be completed, the appropriate
      instruction form for conversion pursuant to the Common Depositary’s book-entry
      conversion program, deliver, or cause to be delivered, by book-entry delivery
      an
      interest in such Global Note, furnish appropriate endorsements and transfer
      documents if required by the Company or the Trustee or conversion agent, and
      pay
      the funds, if any, required by this Section and any transfer taxes if required
      pursuant to Section
      14.08.

     

    As
      promptly as practicable after satisfaction of the requirements for conversion
      set forth above, subject to compliance with any restrictions on transfer if
      shares issuable on conversion are to be issued in a name other than that of
      the
      Noteholder (as if such transfer were a transfer of the Note or Notes (or portion
      thereof) so converted), the Company shall issue and shall deliver to such
      Noteholder at the office or agency maintained by the Company for such purpose
      pursuant to Section
      4.02
      a
      certificate or certificates for the number of full shares of Common Stock
      issuable upon the conversion of such Note or portion thereof as determined
      by
      the Company in accordance with the provisions of this Article and a check or
      cash in respect of any fractional interest in respect of a share of Common
      Stock
      arising upon such conversion, calculated by the Company as provided in
Section
      14.03.
      In case
      any Note of a denomination greater than $100,000 shall be surrendered for
      partial conversion, and subject to Section
      2.03,
      the
      Company shall execute and the Trustee shall authenticate and deliver to the
      holder of the Note so surrendered, without charge to such holder, a new Note
      or
      Notes in authorized denominations in an aggregate principal amount equal to
      the
      unconverted portion of the surrendered Note.

     

    
      
        
        

      

      
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    Each
      conversion shall be deemed to have been effected as to any such Note (or portion
      thereof) on the date (the “Conversion
      Date”)
      on
      which the requirements set forth above in this Section have been satisfied
      as to
      such Note (or portion thereof), and the Person in whose name any certificate
      or
      certificates for shares of Common Stock shall be issuable upon such conversion
      shall be deemed to have become on said date the holder of record of the shares
      represented thereby; provided
      that any
      such surrender on any date when the stock transfer books of the Company shall
      be
      closed shall constitute the Person in whose name the certificates are to be
      issued as the record holder thereof for all purposes on the next succeeding
      day
      on which such stock transfer books are open, but such conversion shall be at
      the
      Conversion Rate in effect on the date upon which such Note shall be
      surrendered.

     

    Any
      Note
      or portion thereof surrendered for conversion during the period from the close
      of business on the record date for any Interest Payment Date to the close of
      business on the Business Day preceding such Interest Payment Date shall be
      accompanied by payment, in immediately available funds or other funds acceptable
      to the Company, of an amount equal to the Interest otherwise payable on such
      Interest Payment Date on the principal amount being converted; provided
      that no
      such payment need be made (1) if the Company has specified a Purchase Date
      that
      is after a record date and on or prior to the next Interest Payment Date or
      (2)
      to the extent of any overdue Interest, if any overdue Interest exists at the
      time of conversion with respect to such Note. Except as provided above in this
      Section, no payment or other adjustment shall be made for Interest accrued
      on
      any Note converted or for dividends on any shares issued upon the conversion
      of
      such Note as provided in this Article.

     

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

     

    Upon
      the
      conversion of a Note, that portion of the accrued but unpaid Interest to the
      Conversion Date, with respect to the converted Note shall not be canceled,
      extinguished or forfeited, but rather shall be deemed to be paid in full to
      the
      holder thereof through delivery of the Common Stock (together with the cash
      payment, if any in lieu of fractional shares) in exchange for the Note being
      converted pursuant to the provisions hereof, and the Fair Market Value of such
      shares of Common Stock (together with any such cash payment in lieu of
      fractional shares) shall be treated as issued, to the extent thereof, first
      in
      exchange for and in satisfaction of the Company’s obligation to pay the
      principal amount of the converted Note, the accrued but unpaid Interest through
      the Conversion Date and the balance, if any, of such Fair Market Value of such
      Common Stock (and any such cash payment) shall be treated as issued in exchange
      for and in satisfaction of the right to convert the Note being converted
      pursuant to the provisions hereof.

     

    Section
      14.03.   Cash
      Payments in Lieu of Fractional Shares.
      

     

    No
      fractional shares of Common Stock or scrip certificates representing fractional
      shares shall be issued upon conversion of Notes. If more than one Note shall
      be
      surrendered for conversion at one time by the same holder, the number of full
      shares that shall be issuable upon conversion shall be computed on the basis
      of
      the aggregate principal amount of the Notes (or specified portions thereof
      to
      the extent permitted hereby) so surrendered. If any fractional share of stock
      would be issuable upon the conversion of any Note or Notes, the Company shall
      make an adjustment and payment therefor in cash at the Closing Sale Price on
      the
      last Trading Day immediately preceding the Conversion Date thereof to the holder
      of Notes. 

     

    
      
        
        

      

      
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    Section
      14.04.   Conversion
      Rate.
      

     

    Each
      $100,000 principal amount of the Notes shall be initially convertible into
      5,555 shares
      of
      Common Stock at the initial Conversion Price of $18.00 per share, as specified
      in the form of Note (herein called the “Conversion
      Rate”)
      attached as Exhibit
      A
      hereto,
      subject to adjustment as provided in this Article.

     

    Section
      14.05.   Adjustment
      of Conversion Rate.
      

     

    The
      Conversion Rate shall be adjusted from time to time by the Company as
      follows:

     

    (a) In
      case
      the Company shall hereafter pay a dividend or make a distribution to all holders
      of the outstanding Common Stock in shares of Common Stock, the Conversion Rate
      shall be increased so that the same shall equal the rate determined by
      multiplying the Conversion Rate in effect at the opening of business on the
      date
      following the date fixed for the determination of shareholders entitled to
      receive such dividend or other distribution by a fraction,

     

    (i) the
      numerator of which shall be the sum of the number of shares of Common Stock
      outstanding at the close of business on the date fixed for the determination
      of
      shareholders entitled to receive such dividend or other distribution plus the
      total number of shares of Common Stock constituting such dividend or other
      distribution; and

     

    (ii) the
      denominator of which shall be the number of shares of Common Stock outstanding
      at the close of business on the date fixed for such determination,

     

    such
      increase to become effective immediately after the opening of business on the
      day following the date fixed for such determination. For the purpose of this
      paragraph (a), the number of shares of Common Stock at any time outstanding
      shall not include shares held in the treasury of the Company. The Company will
      not pay any dividend or make any distribution on shares of Common Stock held
      in
      the treasury of the Company. If any dividend or distribution of the type
      described in this Section
      14.05(a)
      is
      declared but not so paid or made, the Conversion Rate shall again be adjusted
      to
      the Conversion Rate that would then be in effect if such dividend or
      distribution had not been declared.

     

    (b) In
      case
      the Company shall issue rights or warrants to all holders of its outstanding
      shares of Common Stock entitling them (for a period expiring within forty-five
      (45) days after the date fixed for determination of shareholders entitled to
      receive such rights or warrants) to subscribe for or purchase shares of Common
      Stock at a price per share less than the Current Market Price immediately
      preceding the date such distribution is first publicly announced by the Company,
      the Conversion Rate shall be increased so that the same shall equal the rate
      determined by multiplying the Conversion Rate in effect immediately prior to
      the
      date fixed for determination of shareholders entitled to receive such rights
      or
      warrants by a fraction,

     

    
      
        
        

      

      
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    (i) the
      numerator of which shall be the number of shares of Common Stock outstanding
      on
      the date fixed for determination of shareholders entitled to receive such rights
      or warrants plus the total number of additional shares of Common Stock offered
      for subscription or purchase, and

     

    (ii) the
      denominator of which shall be the sum of the number of shares of Common Stock
      outstanding at the close of business on the date fixed for determination of
      shareholders entitled to receive such rights or warrants plus the number of
      shares that the aggregate offering price of the total number of shares so
      offered would purchase at a price equal to the Current Market Price immediately
      preceding the date such distribution is first publicly announced by the
      Company,

     

    such
      adjustment shall be successively made whenever any such rights or warrants
      are
      issued, and shall become effective immediately after the opening of business
      on
      the day following the date fixed for determination of shareholders entitled
      to
      receive such rights or warrants. To the extent that shares of Common Stock
      are
      not delivered after the expiration of such rights or warrants, the Conversion
      Rate shall be readjusted to the Conversion Rate that would then be in effect
      had
      the adjustments made upon the issuance of such rights or warrants been made
      on
      the basis of delivery of only the number of shares of Common Stock actually
      delivered. If such rights or warrants are not so issued, the Conversion Rate
      shall again be adjusted to be the Conversion Rate that would then be in effect
      if such date fixed for the determination of shareholders entitled to receive
      such rights or warrants had not been fixed. In determining whether any rights
      or
      warrants entitle the holders to subscribe for or purchase shares of Common
      Stock
      at a price less than the Current Market Price immediately preceding the date
      such distribution is first publicly announced by the Company, and in determining
      the aggregate offering price of such shares of Common Stock, there shall be
      taken into account any consideration received by the Company for such rights
      or
      warrants and any amount payable on exercise or conversion thereof, the value
      of
      such consideration, if other than cash, to be determined by the Board of
      Directors.

     

    (c) In
      case
      outstanding shares of Common Stock shall be subdivided into a greater number
      of
      shares of Common Stock, the Conversion Rate in effect at the opening of business
      on the day following the day upon which such subdivision becomes effective
      shall
      be proportionately increased, and, conversely, in case outstanding shares of
      Common Stock shall be combined into a smaller number of shares of Common Stock,
      the Conversion Rate in effect at the opening of business on the day following
      the day upon which such combination becomes effective shall be proportionately
      reduced, such increase or reduction, as the case may be, to become effective
      immediately after the opening of business on the day following the day upon
      which such subdivision or combination becomes effective.

     

    (d) In
      case
      the Company shall, by dividend or otherwise, distribute to all holders of Common
      Stock shares of any class of capital stock of the Company or evidences of its
      indebtedness or assets (including securities, but excluding any rights or
      warrants referred to in Section
      14.05(b),
      and
      excluding any dividend or distribution (x) paid exclusively in cash or (y)
      referred to in Section
      14.05(a)
      (any of
      the foregoing hereinafter in this Section
      14.05(d)
      called
      the “Securities”)),
      then, in each such case (unless the Company elects to reserve such Securities
      for distribution to the Noteholders upon the conversion of the Notes so that
      any
      such holder converting Notes will receive upon such conversion, in addition
      to
      the shares of Common Stock to which such holder is entitled, the amount and
      kind
      of such Securities which such holder would have received if such holder had
      converted its Notes into Common Stock immediately prior to the Record Date
      for
      such distribution of the Securities) the Conversion Rate shall be increased
      so
      that the same shall be equal to the rate determined by multiplying the
      Conversion Rate in effect on the Record Date with respect to such distribution
      by a fraction,

     

    
      
        
        

      

      
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    (i) the
      numerator of which shall be the Current Market Price on such Record Date;
      and

     

    (ii) the
      denominator of which shall be the Current Market Price on such Record Date
      less
      the Fair Market Value (as determined by the Board of Directors, whose
      determination shall be conclusive, and described in a resolution of the Board
      of
      Directors) on the Record Date of the portion of the Securities so distributed
      applicable to one share of Common Stock,

     

    such
      adjustment to become effective immediately prior to the opening of business
      on
      the day following such Record Date; provided
      that, if
      the then Fair Market Value (as so determined) of the portion of the Securities
      so distributed applicable to one share of Common Stock is equal to or greater
      than the Current Market Price on the Record Date, in lieu of the foregoing
      adjustment, adequate provision shall be made so that each Noteholder shall
      have
      the right to receive upon conversion the amount of Securities such holder would
      have received had such holder converted each Note on the Record Date. If such
      dividend or distribution is not so paid or made, the Conversion Rate shall
      again
      be adjusted to be the Conversion Rate that would then be in effect if such
      dividend or distribution had not been declared. If the Board of Directors
      determines the Fair Market Value of any distribution for purposes of this
Section
      14.05(d)
      by
      reference to the actual or when issued trading market for any securities, it
      must in doing so consider the prices in such market over the same period used
      in
      computing the Current Market Price on the applicable Record Date.
      Notwithstanding the foregoing, if the Securities distributed by the Company
      to
      all holders of its Common Stock consist of capital stock of, or similar equity
      interests in, a Subsidiary or other business unit, the Conversion Rate shall
      be
      increased so that the same shall be equal to the rate determined by multiplying
      the Conversion Rate in effect on the Record Date with respect to such
      distribution by a fraction,

     

    (i) the
      numerator of which shall be the sum of (A) the average of the Closing Sale
      Prices of the Common Stock for the ten (10) Trading Days commencing on and
      including the fifth Trading Day after the Ex-Dividend Time plus (B) the Fair
      Market Value of the securities distributed in respect of each share of Common
      Stock for which this Section
      14.05(d)
      applies,
      which shall equal the number of Securities distributed in respect of each share
      of Common Stock multiplied by the average of the closing sale prices of those
      Securities distributed (where such closing sale prices are available) for the
      ten (10) Trading Days commencing on and including the fifth Trading Day after
      the Ex-Dividend Time; and

     

    
      
        
        

      

      
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    (iii) the
      denominator of which shall be the average of the Closing Sale Prices of the
      Common Stock for the ten (10) Trading Days commencing on and including the
      fifth
      Trading Day after the Ex-Dividend Time,

     

    such
      adjustment to become effective immediately prior to the opening of business
      on
      the day following such Record Date; provided
      that the
      Company may in lieu of the foregoing adjustment make adequate provision so
      that
      each Noteholder shall have the right to receive upon conversion the amount
      of
      Securities such holder would have received had such holder converted each Note
      on the Record Date with respect to such distribution.

     

    Rights
      or
      warrants distributed by the Company to all holders of Common Stock entitling
      the
      holders thereof to subscribe for or purchase shares of the Company’s capital
      stock (either initially or under certain circumstances), which rights or
      warrants, until the occurrence of a specified event or events (“Trigger
      Event”):
      (i)
      are deemed to be transferred with such shares of Common Stock; (ii) are not
      exercisable; and (iii) are also issued in respect of future issuances of Common
      Stock, shall be deemed not to have been distributed for purposes of this Section
      (and no adjustment to the Conversion Rate under this Section will be required)
      until the occurrence of the earliest Trigger Event, whereupon such rights and
      warrants shall be deemed to have been distributed and an appropriate adjustment
      (if any is required) to the Conversion Rate shall be made under this
Section
      14.05(d).
      If any
      such right or warrant, including any such existing rights or warrants
      distributed prior to the date of this Indenture, are subject to events, upon
      the
      occurrence of which such rights or warrants become exercisable to purchase
      different securities, evidences of indebtedness or other assets, then the date
      of the occurrence of any and each such event shall be deemed to be the date
      of
      distribution and record date with respect to new rights or warrants with such
      rights (and a termination or expiration of the existing rights or warrants
      without exercise by any of the holders thereof). In addition, in the event
      of
      any distribution (or deemed distribution) of rights or warrants, or any Trigger
      Event or other event (of the type described in the preceding sentence) with
      respect thereto that was counted for purposes of calculating a distribution
      amount for which an adjustment to the Conversion Rate under this Section was
      made, (1) in the case of any such rights or warrants that shall all have been
      redeemed or repurchased without exercise by any holders thereof, the Conversion
      Rate shall be readjusted upon such final redemption or repurchase to give effect
      to such distribution or Trigger Event, as the case may be, as though it were
      a
      cash distribution, equal to the per share redemption or repurchase price
      received by a holder or holders of Common Stock with respect to such rights
      or
      warrants (assuming such holder had retained such rights or warrants), made
      to
      all holders of Common Stock as of the date of such redemption or repurchase,
      and
      (2) in the case of such rights or warrants that shall have expired or been
      terminated without exercise by any holders thereof, the Conversion Rate shall
      be
      readjusted as if such rights and warrants had not been issued.

     

    No
      adjustment of the Conversion Rate shall be made pursuant to this Section
      14.05(d)
      in
      respect of rights or warrants distributed or deemed distributed on any Trigger
      Event to the extent that such rights or warrants are actually distributed,
      or
      reserved by the Company for distribution to holders of Notes upon conversion
      by
      such holders of Notes to Common Stock.

     

    
      
        
        

      

      
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    For
      purposes of this Section
      14.05(d)
      and
Sections
      14.05(a)
      and
14.05(b),
      any
      dividend or distribution to which
      this
Section
      14.05(d)
      is
      applicable that also includes shares of Common Stock, or rights or warrants
      to
      subscribe for or purchase shares of Common Stock (or both), shall be deemed
      instead to be (1) a dividend or distribution of the evidences of indebtedness,
      assets or shares of capital stock other than such shares of Common Stock or
      rights or warrants (and any Conversion Rate adjustment required by this
Section
      14.05(d)
      with
      respect to such dividend or distribution shall then be made) immediately
      followed by (2) a dividend or distribution of such shares of Common Stock or
      such rights or warrants (and any further Conversion Rate adjustment required
      by
Sections
      14.05(a)
      and
14.05(b)
      with
      respect to such dividend or distribution shall then be made), except (A) the
      Record Date of such dividend or distribution shall be substituted as “the date
      fixed for the determination of shareholders entitled to receive such dividend
      or
      other distribution”, “the date fixed for the determination of shareholders
      entitled to receive such rights or warrants” and “the date fixed for such
      determination” within the meaning of Sections
      14.05(a)
      and
14.05(b)
      and (B)
      any shares of Common Stock included in such dividend or distribution shall
      not
      be deemed “outstanding at the close of business on the date fixed for such
      determination” within the meaning of Section
      14.05(a).

     

    (e) In
      case
      the Company shall, by dividend or otherwise, distribute to all holders of its
      Common Stock cash (excluding any dividend or distribution in connection with
      the
      liquidation, dissolution or winding up of the Company, whether voluntary or
      involuntary), then, in such case, the Conversion Rate shall be increased so
      that
      the same shall equal the rate determined by multiplying the Conversion Rate
      in
      effect immediately prior to the close of business on such Record Date by a
      fraction,

     

    (i) the
      numerator of which shall be the Current Market Price on such Record Date;
      and

     

    (ii) the
      denominator of which shall be the Current Market Price on such Record Date
      less
      the amount of cash so distributed applicable to one share of Common
      Stock,

     

    such
      adjustment to be effective immediately prior to the opening of business on
      the
      day following the Record Date; provided
      that if
      the portion of the cash so distributed applicable to one share of Common Stock
      is equal to or greater than the Current Market Price on the Record Date, in
      lieu
      of the foregoing adjustment, adequate provision shall be made so that each
      Noteholder shall have the right to receive upon conversion the amount of cash
      such holder would have received had such holder converted each Note on the
      Record Date. If such dividend or distribution is not so paid or made, the
      Conversion Rate shall again be adjusted to be the Conversion Rate that would
      then be in effect if such dividend or distribution had not been
      declared.

     

    
      
        
        

      

      
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    (f) In
      case a
      tender or exchange offer made by the Company or any Subsidiary for all or any
      portion of the Common Stock shall expire and such tender or exchange offer
      (as
      amended upon the expiration thereof) shall require the payment to shareholders
      of consideration per share of Common Stock having a Fair Market Value (as
      determined by the Board of Directors, whose determination shall be conclusive
      and described in a resolution of the Board of Directors) that as of the last
      time (the “Expiration
      Time”)
      tenders or exchanges may be made pursuant to such tender or exchange offer
      (as
      it may be amended) exceeds the Closing Sale Price of a share of Common Stock
      on
      the Trading Day next succeeding the Expiration Time, the Conversion Rate shall
      be increased so that the same shall equal the rate determined by multiplying
      the
      Conversion Rate in effect immediately prior to the Expiration Time by a
      fraction,

     

    (i) the
      numerator of which shall be the sum of (x) the Fair Market Value (determined
      as
      aforesaid) of the aggregate consideration payable to shareholders based on
      the
      acceptance (up to any maximum specified in the terms of the tender or exchange
      offer) of all shares validly tendered or exchanged and not withdrawn as of
      the
      Expiration Time (the shares deemed so accepted up to any such maximum, being
      referred to as the “Purchased
      Shares”)
      and
      (y) the product of the number of shares of Common Stock outstanding (less any
      Purchased Shares) at the Expiration Time and the Closing Sale Price of a share
      of Common Stock on the Trading Day next succeeding the Expiration Time,
      and

     

    (ii) the
      denominator of which shall be the number of shares of Common Stock outstanding
      (including any tendered or exchanged shares) at the Expiration Time multiplied
      by the Closing Sale Price of a share of Common Stock on the Trading Day next
      succeeding the Expiration Time,

     

    such
      adjustment to become effective immediately prior to the opening of business
      on
      the day following the Expiration Time. If the Company is obligated to purchase
      shares pursuant to any such tender or exchange offer, but the Company is
      permanently prevented by applicable law from effecting any such purchases or
      all
      such purchases are rescinded, the Conversion Rate shall again be adjusted to
      be
      the Conversion Rate that would then be in effect if such tender or exchange
      offer had not been made.

     

    (g) On
      February 16 and August 16 of each year, beginning with February 16, 2009, the
      Conversion Rate shall be adjusted to equal the quotient obtained by dividing
      (i)
      $100,000 by (ii) the Trading Reference VWAP; provided
      that no
      such adjustment shall be made if the number of shares issuable upon conversion
      of the Notes at such adjusted Conversion Rate would be lower than the number
      of
      shares issuable at then existing Conversion Rate (after giving effect to prior
      adjustments permitted pursuant to this clause).

     

    (h) If
      at any
      time after the Issue Date the Company shall issue or sell its Common Stock
      at a
      price per share less than the Current Market Price then in effect, the
      Conversion Rate shall be increased such that the Conversion Price is equal
      to
      the lowest price at which the Company has issued or sold its Common Stock after
      the Issue Date such adjustment to take effect as of the date of the issuance
      or
      sale of such Common Stock; provided,
      however,
      that no
      adjustment shall be made to the Conversion Price for the (i) issuance of Common
      Stock pursuant to exercise of warrants or (ii) issuance of Common Stock or
      any
      other securities exercisable into shares of Common Stock (so long as all such
      issuances in the aggregate do not exceed fifteen percent (15%) of the Common
      Stock of the Company issued and outstanding immediately prior to such issuance
      or grants) pursuant to exercise of stock options whether granted or reserved
      under the Company’s employee stock plan, in each case of (i) and (ii), existing
      on the Issue Date, or (iii) issuance or sale of any Common Stock in connection
      with the Acquisitions. For purposes of this paragraph, “Acquisitions”
means
      the acquisitions of Shenzhen Hongtianzhi Electronics Co., Ltd., Wuhan Higheasy
      Electronic Technology Co., Changzhou Minking Electronic Co., Ltd., Shenzhen
      Huiruitong Electrical Appliance Co., Ltd. and Vorx Telecommunications Co.,
      Ltd.
      (in Beijing).

     

    
      
        
        

      

      
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    (i) For
      purposes of this Section
      14.05,
      the
      following terms shall have the meaning indicated:

     

    (i) “Current
      Market Price”
shall
      mean the average of the daily Closing Sale Prices per share of Common Stock
      for
      the twenty (20) consecutive Trading Days ending on the earlier of the Trading
      Day immediately preceding the relevant date and the day before the “ex” date
      with respect to the closing of the issuance, distribution, subdivision or
      combination requiring such computation. For purpose of this paragraph, the
      term
“ex” date, (1) when used with respect to any issuance or distribution, means the
      first date on which the Common Stock trades, regular way, on the relevant
      exchange or in the relevant market from which the Closing Sale Price was
      obtained without the right to receive such issuance or distribution, and (2)
      when used with respect to any subdivision or combination of shares of Common
      Stock, means the first date on which the Common Stock trades, regular way,
      on
      such exchange or in such market after the time at which such subdivision or
      combination becomes effective.

     

    If
      another issuance, distribution, subdivision or combination to which Section
      14.05
      applies
      occurs during the period applicable for calculating “Current Market Price”
pursuant to the definition in the preceding paragraph, “Current Market Price”
shall be calculated for such period in a manner determined by the Board of
      Directors to reflect the impact of such issuance, distribution, subdivision
      or
      combination on the Closing Sale Price of the Common Stock during such
      period.

     

    (ii) “Record
      Date”
shall
      mean, with respect to any dividend, distribution or other transaction or event
      in which the holders of Common Stock have the right to receive any cash,
      securities or other property or in which the Common Stock (or other applicable
      security) is exchanged for or converted into any combination of cash, securities
      or other property, the date fixed for determination of shareholders entitled
      to
      receive such cash, securities or other property (whether such date is fixed
      by
      the Board of Directors or by statute, contract or otherwise).

     

    (iii) “Trading
      Day”
shall
      mean (x) if the applicable security is quoted on the Nasdaq Global Market,
      Global Select Market or Capital Market, a day on which trades may be made
      thereon, (y) if the applicable security is listed or admitted for trading on
      the
      American Stock Exchange, New York Stock Exchange or another national securities
      exchange, a day on which the American Stock Exchange, New York Stock Exchange
      or
      another national securities exchange is open for business, or (z) if the
      applicable security is not so listed, admitted for trading or quoted, any day
      other than a Saturday or Sunday or a day on which banking institutions in the
      State of New York are authorized or obligated by law or executive order to
      close.

     

    
      
        
        

      

      
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    (j) The
      Company may make such increases in the Conversion Rate, in addition to those
      required by Section
      14.05(a)
      through
(i)
      as the
      Board of Directors considers to be advisable to avoid or diminish any income
      tax
      to holders of Common Stock or rights to purchase Common Stock resulting from
      any
      dividend or distribution of stock (or rights to acquire stock) or from any
      event
      treated as such for income tax purposes.

     

    To
      the
      extent permitted by applicable law and Nasdaq Marketplace rules, the Company
      from time to time may increase the Conversion Rate by any amount for any period
      of time if the period is at least twenty (20) Business Days, the increase is
      irrevocable during the period and the Board of Directors shall have made a
      determination that such increase would be in the best interests of the Company,
      which determination shall be conclusive. Whenever the Conversion Rate is
      increased pursuant to the preceding sentence, the Company shall mail to holders
      of record of the Notes a notice of the increase at least fifteen (15) days
      prior
      to the date the increased Conversion Rate takes effect, and such notice shall
      state the increased Conversion Rate and the period during which it will be
      in
      effect.

     

    (k) No
      adjustment in the Conversion Rate shall be required unless such adjustment
      would
      require an increase or decrease of at least one percent (1%) in such rate;
      provided
      that any
      adjustments that by reason of this Section
      14.05(l)
      are not
      required to be made shall be carried forward and taken into account in any
      subsequent adjustment. All calculations under this Article shall be made by
      the
      Company and shall be made to the nearest cent or to the nearest one-ten
      thousandth (1/10,000) of a share, as the case may be. No adjustment need be
      made
      for rights to purchase Common Stock pursuant to a Company plan for reinvestment
      of dividends or interest or for any issuance of Common Stock or convertible
      or
      exchangeable securities or rights to purchase Common Stock or convertible or
      exchangeable securities. To the extent the Notes become convertible into cash,
      assets, property or securities (other than capital stock of the Company), no
      adjustment need be made thereafter as to the cash, assets, property or such
      securities. Interest will not accrue on any cash into which the Notes are
      convertible.

     

    (l) Whenever
      the Conversion Rate is adjusted as herein provided, the Company shall promptly
      file with the Trustee and any conversion agent other than the Trustee an
      Officers’ Certificate setting forth the Conversion Rate after such adjustment
      and setting forth a brief statement of the facts requiring such adjustment.
      Unless and until a Responsible Officer of the Trustee shall have received such
      Officers’ Certificate, the Trustee shall not be deemed to have knowledge of any
      adjustment of the Conversion Rate and may assume that the last Conversion Rate
      of which it has knowledge is still in effect. Promptly after delivery of such
      certificate, the Company shall prepare a notice of such adjustment of the
      Conversion Rate setting forth the adjusted Conversion Rate and the date on
      which
      each adjustment becomes effective and shall mail such notice of such adjustment
      of the Conversion Rate to the holder of each Note at his last address appearing
      on the Security Register provided for in Section
      4.02
      of this
      Indenture, within twenty (20) days after execution thereof. Failure to deliver
      such notice shall not affect the legality or validity of any such
      adjustment.

     

    
      
        
        

      

      
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    (m) In
      any
      case in which this Section provides that an adjustment shall become effective
      immediately after (1) a record date or Record Date for an event, (2) the date
      fixed for the determination of shareholders entitled to receive a dividend
      or
      distribution pursuant to Section
      14.05(a),
      (3) a
      date fixed for the determination of shareholders entitled to receive rights
      or
      warrants pursuant to Section
      14.05(b),
      or (4)
      the Expiration Time for any tender or exchange offer pursuant to Section
      14.05(f),
      (each a
“Determination
      Date”),
      the
      Company may elect to defer until the occurrence of the applicable Adjustment
      Event (as hereinafter defined) (x) issuing to the holder of any Note converted
      after such Determination Date and before the occurrence of such Adjustment
      Event, the additional shares of Common Stock or other securities issuable upon
      such conversion by reason of the adjustment required by such Adjustment Event
      over and above the Common Stock issuable upon such conversion before giving
      effect to such adjustment and (y) paying to such holder any amount in cash
      in
      lieu of any fraction pursuant to Section
      14.03.
      For
      purposes of this Section
      14.05(n),
      the
      term “Adjustment
      Event”
shall
      mean:

     

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

     

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

     

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

     

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

     

    (n) For
      purposes of this Section, the number of shares of Common Stock at any time
      outstanding shall not include shares held in the treasury of the Company but
      shall include shares issuable in respect of scrip certificates issued in lieu
      of
      fractions of shares of Common Stock. The Company will not pay any dividend
      or
      make any distribution on shares of Common Stock held in the treasury of the
      Company.

     

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

     

    If
      any of
      the following events occur, namely (i) any reclassification or change of the
      outstanding shares of Common Stock (other than (x) a subdivision or combination
      to which Section
      14.05(c)
      applies)
      as a result of which holders of Common Stock shall be entitled to receive stock,
      other securities or other property or assets (including cash) with respect
      to or
      in exchange for such Common Stock, (ii) any consolidation, merger or combination
      of the Company with another Person as a result of which holders of Common Stock
      shall be entitled to receive stock, other securities or other property or assets
      (including cash) with respect to or in exchange for such Common Stock, or (iii)
      any sale or conveyance of all or substantially all of the properties and assets
      of the Company to any other Person as a result of which holders of Common Stock
      shall be entitled to receive stock, other securities or other property or assets
      (including cash) with respect to or in exchange for such Common Stock, then
      the
      Company or the successor or purchasing Person, as the case may be, shall execute
      with the Trustee a supplemental indenture (in form satisfactory to the Trustee)
      providing that each Note shall be convertible into the kind and amount of shares
      of stock, other securities or other property or assets (including cash)
      receivable upon such reclassification, change, consolidation, merger,
      combination, sale or conveyance by a holder of a number of shares of Common
      Stock issuable upon conversion of such Notes (assuming, for such purposes,
      a
      sufficient number of authorized shares of Common Stock are available to convert
      all such Notes) immediately prior to such reclassification, change,
      consolidation, merger, combination, sale or conveyance assuming such holder
      of
      Common Stock did not exercise such holder’s rights of election, if any, as to
      the kind or amount of stock, other securities or other property or assets
      (including cash) receivable upon such reclassification, change, consolidation,
      merger, combination, sale or conveyance (provided
      that, if
      the kind or amount of stock, other securities or other property or assets
      (including cash) receivable upon such reclassification, change, consolidation,
      merger, combination, sale or conveyance is not the same for each share of Common
      Stock in respect of which such rights of election shall not have been exercised
      (“Non-electing
      share”),
      then
      for the purposes of this Section the kind and amount of stock, other securities
      or other property or assets (including cash) receivable upon such
      reclassification, change, consolidation, merger, combination, sale or conveyance
      for each Non-electing share shall be deemed to be the kind and amount so
      receivable per share by a plurality of the Non-electing shares). Such
      supplemental indenture shall provide for adjustments which shall be as nearly
      equivalent as may be practicable to the adjustments provided for in this
      Article.

     

    
      
        
        

      

      
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    The
      Company shall cause notice of the execution of such supplemental indenture
      to be
      mailed to each holder of Notes, at its address appearing on the Security
      Register provided for in Section
      4.02
      of this
      Indenture, within twenty (20) days after execution thereof. Failure to deliver
      such notice shall not affect the legality or validity of such supplemental
      indenture.

     

    The
      above
      provisions of this Section shall similarly apply to successive
      reclassifications, changes, consolidations, mergers, combinations, sales and
      conveyances.

     

    If
      this
      Section applies to any event or occurrence, Section
      14.05
      shall
      not apply.

     

    Section
      14.07.   Mandatory
      Conversion.
      

     

    In
      addition to the rights of the Noteholders to convert the Notes as set forth
      in
Section
      14.01(a),

     

    (a) if
      2010
      Mandatory Conversion Trigger shall have occurred, on the next succeeding Trading
      Day, 50% of the Notes then outstanding shall be mandatorily converted, on a
      pro
      rata
      basis
      according to principal amount, at the applicable Conversion Ratio;

     

    
      
        
        

      

      
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    (b) if
      both
      2010 Mandatory Conversion Trigger and 2011 Mandatory Conversion Trigger shall
      have occurred, in addition to Section 14.07(a) above, on the next succeeding
      Trading Day after 2011 Mandatory Conversion Trigger, all of the Notes then
      outstanding shall be mandatorily converted at the applicable Conversion Ratio;
      and

     

    (c) if
      2010
      Mandatory Conversion Trigger shall not have occurred and only 2011 Mandatory
      Conversion Trigger shall have occurred, on the next succeeding Trading Day,
      50%
      of the Notes then outstanding shall be mandatorily converted, on a pro
      rata
      basis
      according to principal amount, at the applicable Conversion Ratio.

     

    The
      Company shall promptly take all steps necessary to provide for the issuance
      of
      shares of Common Stock to the holders of Notes in connection with any such
      mandatory conversion of the Notes.

     

    “2010
      Mandatory Conversion Trigger”
means,
      during the one year period from February 16, 2009 to February 15, 2010 (such
      dates inclusive), the 45-day VWAP equals or is greater than $30.00 per share
      of
      Common Stock; and

     

    “2011
      Mandatory Conversion Trigger”
means,
      during the one year period from February 16, 2010 to February 15, 2011 (such
      dates inclusive), the 45-day VWAP equals or is greater than $35.00 per share
      of
      Common Stock.

     

    “45-day
      VWAP”
means
      as of February
      15 of the applicable year, the simple arithmetic average of the VWAPs as shown
      on Bloomberg for the forty-five Trading Days preceding such February 15, as
      proportionally adjusted for any subdivision, consolidation, reclassification
      or
      similar event of the shares of the Common Stock. For the purposes this
Section
      14.07
      only,
“Trading Day” shall mean a trading day on which the minimum trading volume of
      shares of the Common Stock on the Trading Market exceed 150,000 shares of the
      Common Stock.

     

    Section
      14.08.   Taxes
      on Shares Issued.
      

     

    The
      issue
      of stock certificates on conversions of Notes shall be made without charge
      to
      the converting Noteholder for any documentary, stamp or similar issue or
      transfer tax in respect of the issue thereof. The Company shall not, however,
      be
      required to pay any such tax which may be payable in respect of any transfer
      involved in the issue and delivery of stock in any name other than that of
      the
      holder of any Note converted, and the Company shall not be required to issue
      or
      deliver any such stock certificate unless and until the Person or Persons
      requesting the issue thereof shall have paid to the Company the amount of such
      tax or shall have established to the satisfaction of the Company that such
      tax
      has been paid.

     

    Section
      14.09.   Reservation
      of Shares; Shares to Be Fully Paid; Compliance with Governmental Requirements;
      Listing of Common Stock.
      

     

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

     

    
      
        
        

      

      
        100

        
          

        

      

      
        
        

      

    

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

     

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

     

    The
      Company covenants that, if any shares of Common Stock to be provided for the
      purpose of conversion of Notes hereunder require registration with or approval
      of any governmental authority under any federal or state law before such shares
      may be validly issued upon conversion, the Company will in good faith and as
      expeditiously as possible, to the extent then permitted by the rules and
      interpretations of the Commission (or any successor thereto), endeavor to secure
      such registration or approval, as the case may be.

     

    The
      Company further covenants that, if at any time the Common Stock shall be listed
      on the Nasdaq Global Market, Nasdaq Global Select Market or Nasdaq Capital
      Market or any other national securities exchange or automated quotation system,
      the Company will, if permitted by the rules of such exchange or automated
      quotation system, list and keep listed, so long as the Common Stock shall be
      so
      listed on such exchange or automated quotation system, all Common Stock issuable
      upon conversion of the Notes; provided
      that if
      the rules of such exchange or automated quotation system permit the Company
      to
      defer the listing of such Common Stock until the first conversion of the Notes
      into Common Stock in accordance with the provisions of this Indenture, the
      Company covenants to list such Common Stock issuable upon conversion of the
      Notes in accordance with the requirements of such exchange or automated
      quotation system at such time.

     

    Section
      14.10.   Responsibility
      of Trustee.
      

     

    The
      Trustee and any other conversion agent shall not at any time be under any duty
      or responsibility to any Noteholder to determine the Conversion Rate or whether
      any facts exist which may require any adjustment of the Conversion Rate, or
      with
      respect to the nature or extent or calculation of any such adjustment when
      made,
      or with respect to the method employed, or herein or in any supplemental
      indenture provided to be employed, in making the same. The Trustee and any
      other
      conversion agent shall not be accountable with respect to the validity or value
      (or the kind or amount) of any shares of Common Stock, or of any securities
      or
      property, which may at any time be issued or delivered upon the conversion
      of
      any Note; and the Trustee and any other conversion agent make no representations
      with respect thereto. Neither the Trustee nor any conversion agent shall be
      responsible for any failure of the Company to issue, transfer or deliver any
      shares of Common Stock or stock certificates or other securities or property
      or
      cash upon the surrender of any Note for the purpose of conversion or to comply
      with any of the duties, responsibilities or covenants of the Company contained
      in this Article. Without limiting the generality of the foregoing, neither
      the
      Trustee nor any conversion agent shall be under any responsibility to determine
      the correctness of any provisions contained in any supplemental indenture
      entered into pursuant to Section
      14.06
      relating
      either to the kind or amount of shares of stock or securities or property
      (including cash) receivable by Noteholders upon the conversion of their Notes
      after any event referred to in such Section
      14.06
      or to
      any adjustment to be made with respect thereto, but, subject to the provisions
      of Section
      7.01,
      may
      accept as conclusive evidence of the correctness of any such provisions, and
      shall be protected in relying upon, the Officers’ Certificate (which the Company
      shall be obligated to file with the Trustee prior to the execution of any such
      supplemental indenture) with respect thereto.

     

    
      
        
        

      

      
        101

        
          

        

      

      
        
        

      

    

    Section
      14.11.   Notice
      to Holders Prior to Certain Actions.
      

     

    In
      case:

     

    (a) the
      Company shall declare a dividend (or any other distribution) on its Common
      Stock
      that would require an adjustment in the Conversion Rate pursuant to Section
      14.05;
      or

     

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

     

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

     

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

     

    the
      Company shall cause to be filed with the Trustee and to be mailed to each
      Noteholder at such holder’s address appearing on the Security Register provided
      for in Section
      4.02
      of this
      Indenture, as promptly as possible but in any event at least ten (10) days
      prior
      to the applicable date hereinafter specified, a notice stating (x) the date
      on
      which a record is to be taken for the purpose of such dividend, distribution
      or
      rights or warrants, or, if a record is not to be taken, the date as of which
      the
      holders of Common Stock of record to be entitled to such dividend, distribution
      or rights are to be determined, or (y) the date on which such reclassification,
      consolidation, merger, sale, transfer, dissolution, liquidation or winding-up
      is
      expected to become effective or occur, and the date as of which it is expected
      that holders of Common Stock of record shall be entitled to exchange their
      Common Stock for securities or other property deliverable upon such
      reclassification, consolidation, merger, sale, transfer, dissolution,
      liquidation or winding-up. Failure to give such notice, or any defect therein,
      shall not affect the legality or validity of such dividend, distribution,
      reclassification, consolidation, merger, sale, transfer, dissolution,
      liquidation or winding-up.

     

    Section
      14.12.   Shareholder
      Rights Plans.
      

     

    Each
      share of Common Stock issued upon conversion of Notes pursuant to this Article
      shall be entitled to receive the appropriate number of rights, if any, and
      the
      certificates representing the Common Stock issued upon such conversion shall
      bear such legends, if any, in each case as may be provided by the terms of
      any
      shareholder rights plan adopted by the Company, as the same may be amended
      from
      time to time. If at the time of conversion, however, the rights have separated
      from the shares of Common Stock in accordance with the provisions of the
      applicable shareholder rights agreement so that the holders of the Notes would
      not be entitled to receive any rights in respect of Common Stock issuable upon
      conversion of the Notes, the conversion rate will be adjusted in accordance
      with
Section
      14.05(d)
      treating
      all rights previously issued as Securities for purposes of such adjustment,
      subject to readjustment in the event of the expiration, termination or
      redemption of the rights.

     

    
      
        
        

      

      
        102

        
          

        

      

      
        
        

      

    

    ARTICLE
      15

     

    MISCELLANEOUS
      PROVISIONS

     

    Section
      15.01.   Provisions
      Binding on Company’s Successors.
      

     

    All
      the
      covenants, stipulations, promises and agreements by the Company contained in
      this Indenture shall bind its successors and assigns whether so expressed or
      not.

     

    Section
      15.02.   Official
      Acts by Successor Corporation.
      

     

    Any
      act
      or proceeding by any provision of this Indenture authorized or required to
      be
      done or performed by any board, committee or officer of the Company shall and
      may be done and performed with like force and effect by the like board,
      committee or officer of any Person that shall at the time be the lawful sole
      successor of the Company.

     

    Section
      15.03.   Addresses
      for Notices, Etc.

     

    Any
      notice or demand which by any provision of this Indenture is required or
      permitted to be given or served by the Trustee or by the holders of Notes on
      the
      Company shall be deemed to have been sufficiently given or made, for all
      purposes, if given or served by being deposited postage prepaid by registered
      or
      certified mail in a post office letter box or sent by telecopier transmission
      addressed as follows: 

     

    If
      to the
      Company:

     

    China
      Security & Surveillance Technology, Inc.

    13/F,
      Shenzhen Special Zone Press Tower

    Shennan
      Road, Futian, Shenzhen

    People’s
      Republic of China

    Attention:
      Mr. Tu Guo Shen 

     

    Facsimile
      No: +86 755 83510815

     

    With
      a
      copy to:

     

    Thelen
      Reid Brown Raysman & Steiner LLC

    701
      8th
      Street,
      N.W.

    Washington,
      DC 20001

    U.S.A.

    Attention:
      Lou Bevilacqua, Esq.

    Facsimile
      No: +1 202 654 1804

     

    
      
        
        

      

      
        103

        
          

        

      

      
        
        

      

    

    If
      to the
Trustee:

     

    The
      Bank
      of New York

    101
      Barclay Street

    Floor
      4E

    New
      York,
      NY 10286

    U.S.A.

    Attention:
      Global Corporate Trust

    Facsimile
      No: +1 212 815 5802/5803 

     

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

     

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

     

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

     

    Section
      15.04.   Governing
      Law

     

    .
      

    THIS
      INDENTURE, THE GUARANTEE AND THE NOTES SHALL BE GOVERNED BY AND CONSTRUED IN
      ACCORDANCE WITH THE LAW OF THE STATE OF NEW YORK.

     

    Section
      15.05.   Evidence
      of Compliance with Conditions Precedent; Certificates to Trustee.
      

     

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

     

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

     

    
      
        
        

      

      
        104

        
          

        

      

      
        
        

      

    

    Section
      15.06.   Legal
      Holidays.
      

     

    In
      any
      case in which the date of maturity of Interest on or principal of the Notes
      or
      the redemption date of any Note will not be a Business Day, then payment of
      such
      Interest on or principal of the Notes need not be made on such date, but may
      be
      made on the next succeeding Business Day with the same force and effect as
      if
      made on the date of maturity or the redemption date, and no Interest shall
      accrue for the period from and after such date.

     

    Section
      15.07.   Company
      Responsible for Making Calculations.

     

    The
      Company will be responsible for making all calculations required under the
      Notes. The Company will make these calculations in good faith and absent
      manifest error, these calculations will be final and binding on the Noteholders.
      Promptly after the calculation thereof, the Company will provide to each of
      the
      Trustee and any other conversion agent and Officers’ Certificate setting forth a
      schedule of its calculations, and each of the Trustee and any other conversion
      agent is entitled to conclusively rely upon the accuracy of such calculations
      without independent verification. The Trustee will forward the Company’s
      calculations to any holder upon the written request of such holder.

     

    Section
      15.08.   Benefits
      of Indenture.
      

     

    Nothing
      in this Indenture or in the Notes, express or implied, shall give to any Person,
      other than the parties hereto, any paying agent, any authenticating agent,
      any
      conversion agent, any Common Depositary, any Registrar and their successors
      hereunder and the holders of Notes any benefit or any legal or equitable right,
      remedy or claim under this Indenture.

     

    Section
      15.09.   Table
      of Contents, Headings, Etc.

     

    The
      table
      of contents and the titles and headings of the Articles and Sections of this
      Indenture have been inserted for convenience of reference only, are not to
      be
      considered a part hereof, and shall in no way modify or restrict any of the
      terms or provisions hereof.

     

    Section
      15.10.   Authenticating
      Agent.
      

     

    The
      Trustee may appoint an authenticating agent that shall be authorized to act
      on
      its behalf, and subject to its direction, in the authentication and delivery
      of
      Notes in connection with the original issuance thereof and transfers and
      exchanges of Notes hereunder, including under Sections
      2.04,
      2.05,
      2.06,
      2.07,
      3.02
      and
14.02,
      as
      fully to all intents and purposes as though the authenticating agent had been
      expressly authorized by this Indenture and those Sections to authenticate and
      deliver Notes. For all purposes of this Indenture, the authentication and
      delivery of Notes by the authenticating agent shall be deemed to be
      authentication and delivery of such Notes “by the Trustee” and a certificate of
      authentication executed on behalf of the Trustee by an authenticating agent
      shall be deemed to satisfy any requirement hereunder or in the Notes for the
      Trustee’s certificate of authentication. Such authenticating agent shall at all
      times be a Person eligible to serve as trustee hereunder pursuant to
Section
      7.07.

     

    
      
        
        

      

      
        105

        
          

        

      

      
        
        

      

    

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

     

    Any
      authenticating agent may at any time resign by giving written notice of
      resignation to the Trustee and to the Company. The Trustee may at any time
      terminate the agency of any authenticating agent by giving written notice of
      termination to such authenticating agent and to the Company. Upon receiving
      such
      a notice of resignation or upon such a termination, or in case at any time
      any
      authenticating agent shall cease to be eligible under this Section, the Trustee
      shall either promptly appoint a successor authenticating agent or itself assume
      the duties and obligations of the former authenticating agent under this
      Indenture and, upon such appointment of a successor authenticating agent, if
      made, shall give written notice of such appointment of a successor
      authenticating agent to the Company and shall mail notice of such appointment
      of
      a successor authenticating agent to all holders of Notes as the names and
      addresses of such holders appear on the Security Register.

     

    The
      Company agrees to pay to the authenticating agent from time to time such
      compensation for its services as shall be agreed upon in writing between the
      Company and the authenticating agent.

     

    The
      provisions of Sections
      7.02,
      7.03,
      7.04
      and
12.03
      and this
      Section shall be applicable to any authenticating agent.

     

    Section
      15.11.   Indenture
      and Notes Solely Corporate Obligations.
      

     

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

     

    Section
      15.12.   Execution
      in Counterparts.
      

     

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

     

    Section
      15.13.   Severability.
      

     

    
      
        
        

      

      
        106

        
          

        

      

      
        
        

      

    

    In
      case
      any provision in this Indenture or in the Notes shall be invalid, illegal or
      unenforceable, then (to the extent permitted by law) the validity, legality
      and
      enforceability of the remaining provisions shall not in any way be affected
      or
      impaired thereby.

     

    

     

    [Signature
      page(s) to follow.]

     

    
      
        
        

      

      
        107

        
          

        

      

      
        
        

      

    

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

     

    

    CHINA
      SECURITY & SURVEILLANCE TECHNOLOGY, INC.

     

    By:
      /s/ Tu Guo
      Shen                                                    

    Name:
      Tu
      Guo Shen 

    Title:
      Chief Executive Officer

    

    

    CHINA
      SAFETECH HOLDINGS LIMITED 

    

    
      By:
        /s/ Tu Guo
        Shen                                                    

      Name:
        Tu
        Guo Shen 

      Title:
        Chief Executive Officer

    

    

    CHINA
      SECURITY & SURVEILLANCE TECHNOLOGY (HK) LTD. 

    

    

    
      By:
        /s/ Tu Guo
        Shen                                                    

      Name:
        Tu
        Guo Shen 

      Title:
        Chief Executive Officer

    

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    

    FOR
      THE
      PURPOSE OF SECTION 4.18(A) ONLY

    

    GOLDEN
      GROUP CORPORATION (SHENZHEN) LIMITED

    

    

    
      By:
        /s/ Tu Guo
        Shen                                                    

      Name:
        Tu
        Guo Shen 

      Title:
        Chief Executive Officer

    

    SHANGHAI
      CHENG FENG DIGITAL TECHNOLOGY CO., LTD.

    

    

    
      By:
        /s/ Tu Guo
        Shen                                                    

      Name:
        Tu
        Guo Shen 

      Title:
        Chief Executive Officer 

    

    

    

    CHINA
      SECURITY & SURVEILLANCE TECHNOLOGY (PRC), INC.

    

    

    
      By:
        /s/ Tu Guo
        Shen                                                    

      Name:
        Tu
        Guo Shen 

      Title:
        Chief Executive Officer

    

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    

    THE
      BANK
      OF NEW YORK,

    a
      New
      York banking corporation, 

    as
      Trustee

    

    

    
      By:
        /s/ Lici Zhu        
                                                    

      Name: Lici
        Zhu 

      Title:EXECUTION
      COPY

    INVESTOR
      RIGHTS AGREEMENT

     

    THIS
      INVESTOR RIGHTS AGREEMENT (this
      “Agreement”)
      is
      made and entered into as of February 16, 2007,
      by and
      among (i) (a) China Security & Surveillance Technology, Inc., a Delaware
      corporation (the “Company”),
      (b)
      China Safetech Holdings Limited, a wholly-owned subsidiary of the Company,
      incorporated under the laws of British Virgin Islands (“Safetech”)
      and
      China Security & Surveillance Technology (HK) Ltd., a wholly-owned
      subsidiary of Safetech, incorporated under the laws of Hong Kong (“CSST
      HK”),
      (c)
      Golden Group Corporation (Shenzhen) Limited,
      a
      limited liability company organized and existing under the laws of the
People’s
      Republic of China (the “PRC”)
      and a
      wholly-owned subsidiary of Safetech (“Golden”),
      Shanghai Cheng Feng Digital Technology Co., Ltd., a limited liability company
      organized and existing under the laws of the PRC and a wholly-owned subsidiary
      of CSST HK (“Cheng
      Feng”)
      and
      China Security & Surveillance Technology (PRC), Inc., a
      limited
      liability company organized and existing under the laws of the PRC and a
      wholly-owned subsidiary of the Company (“CSST
      PRC”,
      and
      collectively with the Company, Safetech, CSST HK, Golden and Cheng Feng, the
      “Group
      Companies”),
      (d)
      Mr. Tu Guo Shen (“Mr.
      Tu”),
      a
      resident of the City of Hangzhou in the PRC, Ms. Li Zhi Qun (“Ms.
      Li”),
      a
      resident of the City of Shenzhen in the PRC and Whitehorse Technology Limited,
      a
      British Virgin Islands company wholly owned by Mr. Tu and the registered owner
      of Mr. Tu’s equity interest in the Company (“Whitehorse”,
      and
      collectively with Mr. Tu and Ms. Li, the “Controlling
      Shareholders”)
      and
      (ii) Citadel Equity Fund Ltd. (“Citadel”).
      Capitalized terms used herein but not otherwise defined herein shall have the
      respective meanings set forth in the Notes Purchase Agreement (as defined
      below).

     

    WITNESSETH:

     

    WHEREAS,
      the Company, Safetech, CSST HK, Golden, Cheng Feng, CSST PRC and Citadel have
      entered into that certain Notes
      Purchase
      Agreement dated as of February 16, 2007 (the “Notes
      Purchase
      Agreement”),
      pursuant to which the Company has agreed to issue to Citadel, and Citadel has
      agreed to purchase from the Company, US$60,000,000 1%
      Guaranteed Senior Unsecured Convertible Notes due 2012 (the
      “Notes”),
      which
      are convertible into the Company’s common stock, par value $.0001
      (the
“Common
      Stock”),
      which
      are being issued pursuant to that certain Indenture dated as of the date hereof
      by and among the
      Company, the other Group Companies and The Bank of New York, as trustee (the
      “Indenture”);

     

    WHEREAS,
      in consideration of Citadel entering into the
      Notes
      Purchase
      Agreement, the Company has agreed to provide certain rights set forth in this
      Agreement; and

     

    WHEREAS,
      it is a
      condition to the Closing under the Notes Purchase Agreement that the parties
      hereto shall have executed this Agreement.

     

    NOW,
      THEREFORE, in consideration of the premises and other good and valuable
      consideration, the receipt and sufficiency of which are hereby acknowledged,
      the
      parties hereto, intending to be legally bound by this agreement, agree as
      follows:

     

    
      
        
        

      

      
        1

        
          

        

      

      
        
        

      

    

    1. Representations
      and Warranties of the Group Companies.
      Each of
      the Group Companies, jointly and severally, represents and warrants that:

     

    1.1 Each
      of
      the Group Companies has full power and authority to make, enter into and carry
      out the terms of this Agreement. This Agreement has been duly executed and
      delivered by each Group Company and constitutes the legal, valid and binding
      obligations of such Group Company enforceable against such Group Company in
      accordance with its terms.

     

    1.2 The
      execution and delivery of this Agreement by each Group Company do not, and
      the
      performance of this Agreement by such Group Company will not: (i) conflict
      with
      or violate any law, rule, regulation, order, decree or judgment applicable
      to
      any Group Company or by which any Group Company or any of the properties of
      any
      Group Company is or may be bound or affected, or the Charter Documents of any
      Group Company; (ii) result in or constitute (with or without notice or lapse
      of
      time) any breach of or default under any contract to which any Group Company
      is
      a party or by which any Group Company or any of the affiliates or properties
      of
      any Group Company is or may be bound or affected, or (iii) result in the
      creation of any encumbrance or restriction on any of the shares of Common Stock
      or equity interests in any other Group Company or properties of any Group
      Company. The execution and delivery of this Agreement by each Group Company
      do
      not, and the performance of this Agreement by each Group Company will not,
      require any consent or approval of any Person. 

     

    1.3 Each
      of
      the Group Companies (i) has been duly organized, is validly existing and is
      in
      good standing under the laws of its jurisdiction of organization, (ii) has
      all
      requisite power (corporate and other) and authority to carry on its business
      and
      to own, lease and operate its properties and assets, and (iii) is duly qualified
      or licensed to do business and is in good standing as a foreign corporation
      or
      limited liability company, as the case may be, authorized to do business in
      each
      jurisdiction in which the nature of such business or the ownership or leasing
      of
      such properties requires such qualification, except where the failure to be
      so
      qualified would not, individually or in the aggregate, have a material adverse
      effect on (A) the properties, business, operations, earnings, assets,
      liabilities or condition (financial or otherwise) of the Group Companies, taken
      as a whole, (B) the ability of the Group Companies to perform their respective
      obligations under any Transaction Document or (C) the validity of any of the
      Transaction Documents or the consummation of any of the transactions
      contemplated therein (each, a “Material
      Adverse Effect”).

     

    1.4 Except
      as
      set forth on Schedule
      1.4
      of the
      Disclosure Schedule, there are no outstanding (A) options, warrants or other
      rights to purchase from any Group Company, (B) agreements, contracts,
      arrangements or other obligations of any Group Company to issue, or (C) other
      rights to convert any obligation into or exchange any securities for, in the
      case of each of clauses (A) through (C), shares of capital stock of, or other
      ownership or equity interests in, any Group Company. Except as otherwise
      contemplated in this Agreement, the Company is not a party or subject to any
      agreement or understanding, and there is no agreement or understanding with
      any
      Person that affects or relates to (i) the voting or giving of written consents
      with respect to any security of the Company (including, without limitation,
      any
      voting agreements, voting trust agreements, shareholder agreements or similar
      agreements) or the voting by a director of the Company or (ii) the sale,
      transfer or other disposition with respect to any security of the
      Company.

     

    
      
        
        

      

      
        2

        
          

        

      

      
        
        

      

    

    1.5 Each
      of
      the Notes, when issued, sold and delivered in accordance with the terms thereof
      and for the consideration set forth herein, will be free of restrictions on
      transfer, other than restrictions on transfer under applicable state and federal
      securities laws. Assuming the accuracy of Citadel’s representations in Section 8
      of the Notes Purchase Agreement, the Notes will be issued in compliance with
      applicable state and federal securities laws. The Notes, when issued, will
      be in
      the form contemplated by the Indenture. The Notes have been duly authorized
      by
      the Company and, when executed and delivered by the Company, authenticated
      by
      the Trustee and delivered to the Purchaser in accordance with the terms of
      the
      Notes Purchase Agreement and the Indenture, the Notes will have been duly
      executed, issued and delivered by the Company and will constitute legal, valid
      and binding obligations of the Company, entitled to the benefits of the
      Indenture, and enforceable against the Company in accordance with their terms,
      except as limited by applicable bankruptcy, insolvency, reorganization,
      moratorium and other laws of general application affecting enforcement of
      creditors’ rights generally. The Guarantees have been duly authorized, and, when
      the Notes have been duly executed, authenticated and issued in accordance with
      the provisions of the Indenture and delivered to and paid for by Citadel with
      the Guarantees endorsed thereon by the Guarantors, will constitute the legal,
      valid and binding obligations of each of the Guarantors entitled to the benefits
      of such Indenture.

     

    1.6 The
      Conversion Shares have been duly and validly authorized for issuance by the
      Company, and when issued pursuant to the terms of the Indenture, will be validly
      issued, fully paid and non-assessable, not subject to any preemptive or similar
      rights, free from all taxes, Liens, charges and security interests with respect
      to the issuance thereof and free of restrictions on transfer other than as
      expressly contemplated by the Transaction Documents.

     

    1.7 Except
      as
      disclosed in the SEC Reports, there is no action, claim, suit, demand, hearing,
      notice of violation or deficiency, or proceeding, domestic or foreign
      (collectively, “Proceedings”),
      pending or, to the knowledge of the Company, threatened, that seeks to restrain,
      enjoin, prevent the consummation of, or otherwise challenges any of the
      Transaction Documents, any agreements relating to the Acquisitions or any of
      the
      transactions contemplated therein. Except as disclosed in the SEC Reports,
      none
      of the Group Companies is subject to any judgment, order or decree of which
      the
      Company has knowledge.

     

    1.8 Each
      of
      the Group Companies has good and marketable title to all real property and
      personal property owned by it, in each case free and clear of any Liens as
      of
      the Closing Date, except such Liens as permitted under the Transaction
      Documents. For the real property not owned by any of the Group Companies and
      currently used or planned to be used for the business operations of the Group
      Companies, each of such Group Companies has good and marketable title to all
      leasehold estates in real and personal property being leased by it and, in
      each
      case free and clear of all Liens as of the Closing Date.

     

    1.9 All
      Debt
      (as defined in the Indenture) represented by the Notes and the Guarantees is
      being incurred for proper purposes and in good faith. Based on the financial
      condition of the Company as of the Closing Date after giving effect to the
      receipt by the Company of the proceeds from the sale of the Notes, (i) the
      fair
      saleable value of the Group Companies’ assets exceeds the amount that will be
      required to be paid on or in respect of the Group Companies’ existing debts and
      other liabilities (including contingent liabilities) as they mature; (ii) the
      present fair saleable value of the assets of the Group Companies is greater
      than
      the amount that will be required to pay the probable liabilities of the Group
      Companies on their respective debt as they become absolute and mature, and
      (iii)
      the Group Companies are able to realize upon their assets and pay their debt
      and
      other liabilities (including contingent obligations) as they mature; (iv) the
      Group Companies’ assets do not constitute unreasonably small capital to carry on
      their respective businesses as now conducted and as proposed to be conducted
      including their respective capital needs taking into account the particular
      capital requirements of the business conducted by the Group Companies, and
      projected capital requirements and capital availability thereof; and (v) the
      current cash flow of each of the Group Companies, together with the proceeds
      the
      Company would receive, were it to liquidate all of its assets, after taking
      into
      account all anticipated uses of the cash, would be sufficient to pay all amounts
      on or in respect of its liabilities when such amounts are required to be paid.
      None of the Group Companies intends to incur Debts beyond its ability to pay
      such Debts as they mature (taking into account the timing and amounts of cash
      to
      be payable on or in respect of its Debt). The Company has no knowledge of any
      facts or circumstances which lead it to believe that it or any other Group
      Company will file for reorganization or liquidation under the bankruptcy or
      reorganization laws of any jurisdiction within one year from the Closing Date.
      None of the Group Companies is, or is reasonably likely to be, in default with
      respect to any Debt and no waiver of default is currently in effect. None of
      the
      Group Companies has agreed or consented to cause or permit in the future (upon
      the happening of a contingency or otherwise) any of its property, whether now
      owned or hereafter acquired, to be subject to a Lien. None of the Group
      Companies is a party to, or otherwise subject to any provision contained in,
      any
      instrument evidencing Debt of any of the Group Companies, any agreement relating
      thereto or any other agreement (including, but not limited to, its Charter
      Document) which limits the amount of, or otherwise imposes restrictions on
      the
      incurring of, Debt of the Company.

     

    
      
        
        

      

      
        3

        
          

        

      

      
        
        

      

    

    2. Representations
      and Warranties of the Controlling Shareholders.
      Each of
      the Controlling Shareholders, jointly and severally, represents and warrants
      that: 

     

    2.1 (i)
      Whitehorse is the direct owner of record, free and clear of all Liens, of
      11,000,000
      shares
      of Common
      Stock, which constitutes 33.04% of the outstanding voting power of the Company’s
      capital stock, (ii) Ms. Li is the direct owner of record, free and clear of
      all
      Liens (except for the Lien already provided to a third party by Ms. Li on
      2,044,126 shares of Common Stock (the “Encumbered
      Securities”)),
      of
      2,627,500
      shares
      of Common
      Stock, which constitutes 7.89%
      of the
      outstanding voting power of the Company’s capital stock, and (iii) Mr. Tu is the
      beneficial owner, free and clear of all Liens (except for the Lien on the
      Encumbered Securities), of 13,627,500
      shares
      of Common
      Stock (through the ownership by Whitehorse and Mr. Li), which constitutes
      40.93%
      of the
      outstanding voting power of the Company’s capital stock. Each of the Controlling
      Shareholders has full power and authority to make, enter into and carry out
      the
      terms of this Agreement. This Agreement has been duly executed and delivered
      by
      each Controlling Shareholder and constitutes the legal, valid and binding
      obligations of such Controlling Shareholder enforceable against such Controlling
      Shareholder in accordance with its terms.

     

    2.2 The
      execution and delivery of this Agreement by each Controlling Shareholder do
      not,
      and the performance of this Agreement by such Controlling Shareholder will
      not:
      (i) conflict with or violate any law, rule, regulation, order, decree or
      judgment applicable to any Controlling Shareholder or by which any Controlling
      Shareholder or any of the properties of any Controlling Shareholder is or may
      be
      bound or affected, or the Charter Documents of Whitehorse; (ii) result in or
      constitute (with or without notice or lapse of time) any breach of or default
      under any contract to which any Controlling Shareholder is a party or by which
      any Controlling Shareholder or any of the affiliates or properties of any
      Controlling Shareholder is or may be bound or affected, or (iii) result in
      the
      creation of any encumbrance or restriction on any of the shares of Common Stock
      or equity interests in Whitehorse or properties of any Controlling Shareholder.
      The execution and delivery of this Agreement by each Controlling Shareholder
      do
      not, and the performance of this Agreement by each Controlling Shareholder
      will
      not, require any consent or approval of any Person. 

     

    
      
        
        

      

      
        4

        
          

        

      

      
        
        

      

    

    3. Covenants
      and Agreements.

     

    Unless
      the context requires otherwise, each Group Company hereby, jointly and
      severally, covenants and agrees, and Mr. Tu (with respect to Sections
      3.2,
      3.3
      and
3.4
      only)
      covenants and agrees to cause each Group Company to do, as follows:

     

    3.1 Inspection.
      As long
      as Citadel holds Convertible Notes then outstanding (including the principal
      amount of the Convertible Notes converted into Conversion Shares as if such
      conversion had not taken place and to the extent such Conversion Shares are
      held
      by Citadel at the time of calculating such percentage), the principal amount
      of
      which is at least 25% of the principal amount of the Convertible Notes then
      outstanding (including the principal amount of the Convertible Notes converted
      into Conversion Shares as if such conversion had not taken place and to the
      extent such Conversion Shares are held by Citadel at the time of calculating
      such percentage) (the “Minimum
      Holdings”),
      each
      Group Company shall permit Citadel and any authorized representative thereof,
      to
      visit and inspect the properties of such Group Company, including its corporate
      and financial records, to examine its records and make copies thereof and to
      discuss its affairs, finances and accounts with its officers, at all such
      reasonable times and as
      often
      as may be reasonably requested upon
      reasonable notice,
      provided
      that
      such visits and inspections shall not unduly interrupt the daily operation
      of
      such Group Company. Citadel and its participating agents and representatives,
      in
      exercising its rights of inspection hereunder, agrees to maintain the
      confidentiality of all financial and other confidential information of such
      Group Company acquired by them. If requested by such Group Company, Citadel,
      in
      exercising its rights under this Section
      3.1
      shall
      execute a confidentiality agreement with such Group Company in such reasonable
      form and substance as agreed between Citadel and such Group Company.

     

    3.2 FCPA.
      Each of
      the Group Companies and Mr. Tu (during the term while he serves as the Company’s
      director, Chief Executive Officer or President) shall, and shall cause each
      Group Company, any of the Company’s Subsidiaries and their respective management
      to, (i) comply with the U.S. Foreign Corrupt Practices Act of 1977, as amended,
      and the rules and regulations thereunder (the “FCPA”),
      including, without limitation, not making use of the mails or any means or
      instrumentality of interstate commerce corruptly in furtherance of an offer,
      payment, promise to pay or authorization of the payment of any money, or other
      property, gift, promise to give, or authorization of the giving of value to
      any
“foreign official” (as the term is defined in the FCPA) or any foreign political
      party or official thereof or any candidate for foreign political office, in
      contravention of the FCPA, (ii) conduct each such company’s respective business
      in compliance with the FCPA, and (iii) institute and maintain policies and
      procedures designed to ensure, and which are reasonably expected to continue
      to
      ensure, continued compliance therewith.

     

    
      
        
        

      

      
        5

        
          

        

      

      
        
        

      

    

    3.3 PFIC.
      No
      Group Company shall become a “passive foreign investment company” within the
      meaning of Section 1297 of the U.S. Internal Revenue Code of 1986. 

     

    3.4  OFAC.
      Neither
      any Group Company nor, to the knowledge of any Group Company, any director,
      officer, agent, employee, Affiliate or Person acting on behalf of any Group
      Company is currently subject to any U.S. sanctions administered by the Office
      of
      Foreign Assets Control of the U.S. Treasury Department (“OFAC”);
      and
      no Group Company shall, and Mr. Tu (during the term while he serves as the
      Company’s director, Chief Executive Officer or President) shall cause each Group
      Company not to, directly or indirectly use the proceeds of the sale of the
      Notes, or lend, contribute or otherwise make available such proceeds to any
      Subsidiary, joint venture partner or other Person or entity, towards any sales
      or operations in Cuba, Iran, Syria, Sudan, Myanmar or any other
      country sanctioned by OFAC or for the purpose of financing the activities of
      any
      Person currently subject to any U.S. sanctions administered by
      OFAC.

     

    3.5 Money
      Laundering Laws.
      Each of
      the Group Companies shall, and Mr. Tu (during the term while he serves as the
      Company’s director, Chief Executive Officer or President) shall cause each Group
      Company to, conduct its operations at all times in compliance with the money
      laundering statutes of applicable jurisdictions, the rules and regulations
      thereunder and any related or similar rules, regulations or guidelines, issued,
      administered or enforced by any applicable governmental agency.

     

    3.6 Potential
      Acquisitions.
      Subject
      to Citadel entering into a confidentiality agreement with the Company on terms
      reasonably acceptable to Citadel and the Company, the Company shall notify
      Citadel of any plan of all or a material portion of the acquisition of assets
      or
      securities of another Person if such Person’s assets or operations are primarily
      in the PRC, including the Acquisition (each such acquisition, a “Potential
      Acquisition”),
      and
      provide Citadel with all material documents pertaining to each Potential
      Acquisition, including but not limited to, any and all agreements, memorandums
      of understanding, term sheets or letters of intent, whether in draft or executed
      form, together with any and all applications, forms or similar documents
      (including exhibits, schedules and annexures thereto) prepared for the purpose
      of filing or registrations with, or obtaining consents, approvals,
      authorizations, licenses or orders of, any Governmental Authority under all
      Applicable Laws (the “Acquisition
      Documents”)
      and
      all other material documents reasonably requested by Citadel, reasonably in
      advance of the consummation of such Potential Acquisition, for Citadel and
      its
      counsels to review, and provide comments and suggestions on, the legal structure
      contemplated by the Acquisition Documents. Citadel shall provide any such
      comments to the Company as promptly as possible and, in any event, no later
      than
      three (3) business days from the receipt of all Acquisition Documents provided
      that the Acquisition Documents are timely delivered by the Company to Citadel.
      The Company covenants that it shall reflect, and cause to be reflected, in
      such
      Acquisition Documents and the legal structure contemplated thereby, any comments
      and suggestions provided by Citadel and its counsels, that, in the opinion
      of
      such counsel, are required or necessary to comply with all Applicable Laws
      and
      all conditions and requirements under any filings, registrations, consents,
      approvals, authorizations, licenses or orders of any Governmental Authority
      relating to such Potential Acquisition; provided,
      that,
      for
      the avoidance of doubt, the Company shall, at all times, comply with all
      Applicable Laws and all conditions and requirements under any filings,
      registrations, consents, approvals, authorizations, licenses or orders of any
      Governmental Authority relating to any Potential Acquisition. All legal fees
      incurred by Citadel in connection with such review and comment shall be borne
      by
      Citadel.

     

    
      
        
        

      

      
        6

        
          

        

      

      
        
        

      

    

    3.7 Trading
      Restrictions.
      Each of
      the Company, the Controlling Shareholders, Citadel and their respective
      Affiliates shall not directly or indirectly transact, or induce or procure
      any
      other Person to transact, any purchase or sale in any shares of Common Stock
      during the forty-five (45) Trading Days preceding the determination of any
      Trading Reference VWAP.

     

    In
      this
      Agreement,

     

    “Trading
      Day”
means
      (x) if the applicable security is quoted on the Nasdaq National Market, a day
      on
      which trades may be made thereon, (y) if the applicable security is listed
      or
      admitted for trading on the American Stock Exchange, New York Stock Exchange
      or
      another national securities exchange, a day on which the American Stock
      Exchange, New York Stock Exchange or another national securities exchange is
      open for business, or (z) if the applicable security is not so listed, admitted
      for trading or quoted, any day other than a Saturday or Sunday or a day on
      which
      banking institutions in the State of New York are authorized or obligated by
      law
      or executive order to close;

     

    “Trading
      Market”
means
      the following markets or exchanges on which the Common Stock is listed or quoted
      for trading on the date in question: the Nasdaq Capital Market, the American
      Stock Exchange, the New York Stock Exchange, the Nasdaq Global Market, the
      Nasdaq Global Select Market or the OTC Bulletin Board;

     

    “Trading
      Reference VWAP”
means,
      as of February 16 or August 16 of each year, the simple arithmetic average
      of
      the VWAPs as shown on Bloomberg for the forty-five Trading Days preceding such
      February 16 or August 16, as the case may be, as proportionally adjusted for
      any
      subdivision, consolidation, reclassification or similar event of the shares
      of
      Common Stock (“Shares”);
      provided
      that if
      the actual Trading Reference VWAP be less than $9.00, the Trading Reference
      VWAP
      shall be deemed to be exactly $9.00; and

     

    “VWAP”
means,
      for any date, the price determined by the first of the following clauses that
      applies: (a) if the Common Stock is then listed or quoted on a Trading Market,
      the daily volume weighted average price of the Common Stock for such date (or
      the nearest preceding date) on the Trading Market on which the Common Stock
      is
      then listed or quoted for trading as reported by Bloomberg Financial L.P.
      through its “Volume at Price” functions (based on a Trading Day from 9:30 a.m.
      (New York City time) to 4:02 p.m. (New York City time); (b) if the OTC Bulletin
      Board is not a Trading Market, the volume weighted average price of the Common
      Stock for such date (or the nearest preceding date) on the OTC Bulletin Board;
      or (c) if the Common Stock is not then quoted for trading on the OTC Bulletin
      Board and if prices for the Common Stock are then reported in the “Pink Sheets”
published by Pink Sheets, LLC (or a similar organization or agency succeeding
      to
      its functions of reporting prices), the average of the highest closing bid
      price
      and lowest closing ask price of any of the market makers for such security
      as
      reported, and in each of the foregoing clauses ignoring any block trade (which
      for purposes of this definition means any transfer of more than 100,000 shares).
      If the VWAP cannot be calculated for such security on such date on any of the
      foregoing bases, the VWAP
      of such
      security on such date shall be the fair market value as mutually determined
      by
      the Company and the holders of the Notes of at least a majority in aggregate
      principal amount of the Notes then outstanding.

     

    
      
        
        

      

      
        7

        
          

        

      

      
        
        

      

    

    3.8 New
      Issuances or Sales to Third Parties.
      The
      Company shall not issue or sell any Common Stock or securities or options
      exercisable, exchangeable or convertible into Common Stock to a purchaser that
      is not an Affiliate of Citadel or the Company, if the issuance or sale price
      of
      such securities (as appropriately adjusted taking into account applicable
      exercise or conversion prices) is not greater than (i) 90% of the closing price
      of the Common Stock on the Trading Market as of the date of closing of such
      issuance or sale or (ii) the simple
      arithmetic average of the closing prices of the Common Stock on
      the
      Trading Market for
      the
      twenty Trading Days preceding the date of closing of such issuance or sale.
      Notwithstanding the foregoing, the prohibitions in the immediately preceding
      sentence shall not apply to (x) issuance pursuant to the Company’s employee
      stock plan or (y) in connection with the Acquisitions.

     

    In
      this
      Agreement, “Acquisitions”
means
      the acquisitions of Shenzhen Hongtianzhi Electronics Co., Ltd., Wuhan Higheasy
      Electronic Technology Co., Changzhou Minking Electronic Co., Ltd., Shenzhen
      Huiruitong Electrical Appliance Co., Ltd. and Vorx Telecommunications Co.,
      Ltd.
      (in Beijing).

     

    3.9 Outstanding
      Number of Common Stock.
      Until
      the maturity of the Notes, the Company shall not (i) have more than 60,000,000
      shares of Common Stock outstanding at any time or (ii) issue any new class
      of
      Equity Securities of the Company, in each case without the prior written
      agreement between the Company and Citadel.

     

    In
      this
      Agreement, “Equity
      Securities”
means,
      with respect to any Person, any and all shares of Capital Stock of such Person,
      securities of such Person convertible into, or exchangeable or exercisable
      for,
      such shares, and options, warrants or other rights to acquire such shares and
      any securities that represent the right to receive the Equity
      Securities.

     

    3.10 Other
      Covenants.
      As long
      as Citadel holds the Minimum Holdings, each Group Company hereby covenants
      and
      agrees as follows, unless Citadel otherwise provides prior written consent
      in
      its sole discretion:

     

    (a) No
      Group
      Company shall change
      the substantive responsibilities of Mr. Tu as a member of the management of
      such
      Group Company and
      its
      Subsidiaries, or substitute any other Person to perform the substantive
      responsibilities of Mr. Tu as such member of management as they are performed
      as
      of the date hereof, other than in the case of incapacity of Mr. Tu.

     

    (b) No
      Group
      Company or its Subsidiaries shall issue
      any
      securities, create any security interest or enter
      into any transaction or a series of related transactions the completion of
      which
      will result in a Change of Control of the Company. “Change
      of Control”
shall
      have the meaning as defined in the Indenture.

     

    
      
        
        

      

      
        8

        
          

        

      

      
        
        

      

    

    (c) No
      Group
      Company shall amend,
      alter, waive or repeal any provision of such Group Company’s or its
      Subsidiaries’ certificate of incorporation, memorandum and articles of
      association or any other organizational or constitutional documents of such
      Group Company or its Subsidiaries, provided
      that
      Citadel’s consent for such amendment, alteration, waiver or repeal shall not be
      unreasonably withheld.

     

    (d) No
      Group
      Company
      or its Subsidiaries
      shall
      enter into any activities which
      are
      not in the ordinary course of business of such Group Company or such Subsidiary,
      as the case may be, and that would have a material adverse effect on the
      interests of Citadel.

     

    (e) No
      Group
      Company shall change the nature of operations or the business of such Group
      Company and its Subsidiaries.

     

    4. Right
      of First Refusal for Future Securities Offerings.
      

     

    4.1 Issuance
      Notice.
      As long
      as Citadel holds the Minimum Holdings, subject to the terms and conditions
      of
      this Section
      and applicable securities laws, if, following the date hereof and until December
      31, 2010, the Company proposes to issue or sell any securities to a purchaser
      or
      purchasers that are not an Affiliate of the Company (the “Proposed
      Third Party Purchaser”),
      the
      Company shall, (i) not less than three (3) business days prior to the
      consummation of such issuance or sale in the case of a proposed public offering
      of Equity Securities of the Company, and (ii) not less than fifteen (15)
      business days prior to the consummation of such issuance or sale in the case
      of
      all other issuances and sales of securities of the Company, offer such
      securities to Citadel by sending written notice (an “Issuance
      Notice”)
      to
      Citadel, which shall state (a)
      the
      identity of the Proposed Third Party Purchaser, (b) a description of the
      securities to be issued or sold, including detailed terms of such securities,
      (c) the amount of the securities proposed to be issued to the Proposed Third
      Party Purchaser (the “Offered
      New Securities”);
      (d)
      the proposed purchase price for the Offered Securities (the “Issuance
      Price”);
      and
      (e) the terms and conditions of such proposed sale.
      The
      Issuance Notice shall also certify that the Company has received a firm offer
      from the Proposed Third Party Purchaser and in good faith believes a binding
      agreement for the Offered New Securities is obtainable on the terms set forth
      in
      the Issuance Notice. The Issuance Notice shall also include a copy of any
      written proposal, term sheet or letter of intent or other agreement or
      understanding relating to the Offered New Securities and proof satisfactory
      to
      the Company that the Offered New Securities will not violate any applicable
      securities laws. Upon delivery of the Issuance Notice, such offer shall be
      irrevocable unless and until the rights of first refusal provided for herein
      shall have been waived or shall have expired. 

     

    4.2 Option;
      Exercise.
      By
      notification to the Company (i) within three (3) business days after the
      Issuance Notice is given in the case of a proposed public offering of Equity
      Securities of the Company, and (ii) within fifteen (15) business after the
      Issuance Notice is given in the case of all other issuances and sales of
      securities of the Company, Citadel may elect to purchase or otherwise acquire,
      at the price and on the terms specified in the Issuance Notice, up to all of
      the
      Offered New Securities.
      The
      closing of any sale pursuant to this Section
      4.2
      shall
      occur within sixty (60) days after the date on which such notification is given
      by Citadel.
      Citadel
      shall be entitled to apportion the rights of first refusal hereby granted to
      it
      among itself and its Affiliates in such proportions as it deems
      appropriate.

     

    
      
        
        

      

      
        9

        
          

        

      

      
        
        

      

    

    4.3 If
      less
      than all of the Offered New Securities are elected to be purchased or acquired
      as provided in Section
      4.2,
      the
      Company may, during the thirty (30) day period following the expiration of
      the
      3-day period as set forth in Section
      4.2(i)
      or the
      15-day period as set forth in Section 4.2(ii) herein, as the case may be, offer
      and sell the remaining unsubscribed portion of such securities to the Proposed
      Third Party Purchaser in the Issuance Notice at a price not less than, and
      upon
      terms no more favorable to the Proposed Third Party Purchaser than, those
      specified in the Issuance Notice. If the Company does not enter into an
      agreement for the sale of such securities within such period, or if such
      agreement is not consummated within thirty (30) days after the execution
      thereof, the right of first refusal provided hereunder shall be deemed to be
      revived and such securities shall not be offered to a third party unless first
      reoffered to Citadel in accordance with this Section.

     

    5. Right
      of First Refusal for Controlling Shareholder’s Transfer and Tag-Along
      Right.

     

    5.1 Securities
      Notice.
      As long
      as Citadel holds the Minimum Holdings, subject to Section
      5.8
      of this
      Agreement, if any of the Controlling Shareholders proposes to sell or transfer
      any securities of the Company directly or indirectly held by it to a third
      party
      purchaser (the “Third
      Party Purchaser”)
      (for
      the avoidance of doubt, including any sale or transfer by Mr. Tu of the Equity
      Securities of Whitehorse) other than as otherwise agreed by Citadel in writing
      prior to such sale or transfer, or in the case of any Exempt Transfer (as
      defined in Section
      5.7
      below),
      such Controlling Shareholder shall, within fifteen (15) business days prior
      to
      the consummation of such transfer or sale, offer such securities to Citadel
      by
      sending written notice (an “Offering
      Notice”)
      to
      Citadel, which shall state (a) the identity of the Third Party Purchaser, (b)
      the type and number of such securities proposed to be transferred (the
“Offered
      Securities”),
      including detailed terms of such securities (if other than Common Stock); (c)
      the proposed purchase price per share for the Offered Securities (the
“Offer
      Price”);
      and
      (d) the terms and conditions of such sale. The Offering Notice shall also
      certify that such Controlling Shareholder has received a firm offer from the
      Third Party Purchaser and in good faith believes a binding agreement for the
      Offered Securities is obtainable on the terms set forth on the Offering Notice.
      The Offering Notice shall also include a copy of any written proposal, term
      sheet or letter of intent or other agreement or understanding relating to the
      Offered Securities and proof satisfactory to the Company that the Offered
      Securities will not violate any applicable securities laws. Upon delivery of
      the
      Offering Notice, such offer shall be irrevocable unless and until the rights
      of
      first refusal provided for herein shall have been waived or shall have expired.
      

     

    5.2 Option;
      Exercise.
      For a
      period of fifteen (15) business days after the giving of the Offering Notice
      pursuant to Section
      5.1
      (the
“Option
      Period”),
      Citadel shall have the right to purchase all or any part of the Offered
      Securities at a purchase price equal to the Offer Price and upon terms and
      conditions no less favorable than those set forth in the Offering Notice.
      Citadel may assign to any of its Affiliates all or any portion of its rights
      pursuant to this Section.

     

    5.3 The
      right
      of Citadel to purchase all or any part of the Offered Securities under
Section
      5.2
      above
      shall be exercisable by delivering written notice of the exercise thereof (the
      “ROFR
      Exercise Notice”),
      prior
      to the expiration of the Option Period, to the Controlling Shareholder. Such
      notice shall state the number of Offered Securities that Citadel is willing
      to
      purchase pursuant to this Section. The failure of Citadel to respond within
      the
      Option Period to the Controlling Shareholder shall be deemed to be a waiver
      of
      Citadel’s rights under Section
      5.1
      above,
provided
      that
      Citadel may waive its rights under Section
      5.2
      above
      prior to the expiration of the Option Period by giving written notice to the
      Controlling Shareholder that sent to Citadel the Offering Notice.

     

    
      
        
        

      

      
        10

        
          

        

      

      
        
        

      

    

    5.4 Closing.
      The
      closing of the purchases of Offered Securities subscribed for by Citadel under
      Section
      5.3
      shall be
      held at the executive office of the Company at 11:00 a.m., local time, on the
      30th
      day
      after the giving of the ROFR Exercise Notice pursuant to Section
      5.3
      or at
      such other time and place as the parties to the transaction may agree. At such
      closing, the Controlling Shareholder that sent to Citadel the Offering Notice
      shall deliver certificates representing the Offered Securities, duly endorsed
      for transfer and accompanied by all requisite transfer taxes, if any, and such
      Offered Securities shall be free and clear of any Liens (other than those
      arising hereunder and those attributable to actions by the purchasers thereof)
      and such Controlling Shareholder shall so represent and warrant, and shall
      further represent and warrant that it is the sole beneficial and record owner
      of
      such Offered Securities. Citadel shall deliver at the closing payment in full
      in
      immediately available funds for the Offered Securities purchased by it or its
      Affiliates. At such closing, all of the parties to the transaction shall execute
      such additional documents as are otherwise necessary or
      appropriate.

     

    5.5 Sale
      to a Third Party Purchaser.
      Unless
      Citadel elects to purchase all of the Offered Securities under Section
      5.2,
      the
      Controlling Shareholder that sent to Citadel the Offering Notice may, subject
      to
Section
      5.8,
      sell
      the remaining Offered Securities not purchased by Citadel to the Third Party
      Purchaser identified in the Offering Notice at a price not less than the Offer
      Price, and on terms not more favorable than the terms set forth in the Offering
      Notice; provided,
      however,
      that
      such sale is bona fide and made pursuant to a contract entered into within
      thirty (30) days after the earlier to occur of (i) the waiver by Citadel of
      its
      right to purchase the Offered Securities as set forth in Sections
      5.1,
      5.2,
      5.3
      and
5.4
      herein
      and (ii) the expiration of the Option Period (the “Contract
      Date”);
      and
provided
      further,
      that
      such sale shall not be consummated unless and until (x) such Third Party
      Purchaser shall represent in writing to Citadel that it is aware of the rights
      of Citadel contained in this Agreement and (y) prior to the purchase by such
      Third Party Purchaser of any of such Offered Securities, such Third Party
      Purchaser shall become a party to this Agreement and agree to be bound by the
      terms and conditions hereof that are applicable to the Controlling Shareholder.
      If such sale is not consummated within thirty (30) days after the earlier to
      occur of (i) the waiver by Citadel of its options to purchase the offer and
      (ii)
      the Contract Date for any reason, then the restrictions provided for herein
      shall again become effective, and no transfer of such Offered Securities may
      be
      made thereafter by the Controlling Shareholder without again offering the same
      to Citadel in accordance with this Section.

     

    5.6  Tag-Along
      Right.
      (a) If
      the Controlling Shareholder is directly or indirectly transferring Offered
      Securities to a Third Party Purchaser pursuant to Section
      5.5,
      then
      Citadel shall have the right to sell to such Third Party Purchaser that number
      Shares (or Notes representing as closely as possible such number of Shares
      held
      by Citadel) equal to that percentage of the Offered Securities determined by
      dividing (i) the total number of outstanding Shares (on an as-converted basis)
      then owned, directly or indirectly, by Citadel by (ii) the sum of (x) the total
      number of Shares (on an as-converted basis) then owned, directly or indirectly,
      by Citadel and (y) the total number of Shares then owned, directly or
      indirectly, by the Controlling Shareholder, at a price equal to (i) the Offer
      Price in the case of sale of Shares (and in the event that the Offered
      Securities are Equity Securities of Whitehorse, the Offer Price shall be
      adjusted to reflect the equity interest in the Company represented by such
      Offered Securities) (ii) or the Offer Price less the then applicable Conversion
      Price in the case of the sale of the Notes (and in the event that the Offered
      Securities are Equity Securities of Whitehorse, the Offer Price shall be
      adjusted to reflect the equity interest in the Company represented by such
      Offered Securities), in either case, in accordance with the other terms set
      forth in the Offering Notice. The Controlling Shareholder and Citadel shall
      effect the sale of the Offered Securities and Citadel shall sell the number
      of
      Offered Securities to be sold by it pursuant to this Section, and the number
      of
      Offered Securities to be sold to such Third Party Purchaser by the Controlling
      Shareholder shall be reduced accordingly.

     

    
      
        
        

      

      
        11

        
          

        

      

      
        
        

      

    

    (b)
      The
      Controlling Shareholder shall give notice to Citadel of each proposed sale
      by it
      of Offered Securities which gives rise to the rights of Citadel set forth in
      this Section, at least fifteen (15) business days prior to the proposed
      consummation of such sale, setting forth the type and number of Offered
      Securities, including detailed terms of such securities (if other than Shares),
      the name and address of the proposed Third Party Purchaser, the proposed amount
      and form of consideration and terms and conditions of payment offered by such
      Third Party Purchaser, the percentage of Shares (or Notes representing such
      Shares) that Citadel may sell to such Third Party Purchaser (determined in
      accordance with Section
      5.6(a)),
      and a
      representation that such Third Party Purchaser has been informed of the
“tag-along” rights provided for in this Section and has agreed to purchase
      Offered Securities in accordance with the terms hereof. The tag-along rights
      provided by this Section must be exercised by Citadel within fifteen (15)
      business days following receipt of the notice required by the preceding
      sentence, by delivery of a written notice to such Controlling Shareholder
      indicating Citadel’s election to exercise its rights and specifying the number
      of Shares or Notes (up to the maximum number of Shares or Notes owned by Citadel
      required to be purchased by such Third Party Purchaser) it elects to sell (the
      “Tag-along
      Exercise Notice”),
      provided
      that
      Citadel may waive its rights under this Section prior to the expiration of
      such
      fifteen (15) business day period by giving written notice to such Controlling
      Shareholder, with a copy to the Company. The failure of Citadel to respond
      within such fifteen (15) business day period shall be deemed to be a waiver
      of
      Citadel’s rights under this Section. If a Third Party Purchaser fails to
      purchase Shares or Notes from Citadel, notwithstanding Citadel’s proper exercise
      of its tag-along rights pursuant to this Section
      5.6(b),
      then
      such Controlling Shareholder shall either contemporaneously purchase from
      Citadel (i) at the Offer Price such number of Shares as the Third Party
      Purchaser failed to purchase from Citadel or (ii) at the Offer Price less the
      then applicable Conversion Price such number of Notes as the Third Party
      Purchaser failed to purchase from Citadel, as the case may be, or if the
      Controlling Shareholder does not so purchase, it shall not be permitted to
      consummate the proposed sale of the Offered Securities, and any such attempted
      sale shall be null and void ab
      initio.

     

    5.7 Exempt
      Transfers.
      The
      right of first refusal and tag-along rights set forth in this Section
      5
      shall
      not apply to (i) any transfer to a Permitted Holder (as defined in the
      Indenture); provided
      that
      adequate documentation therefor is provided to Citadel to its satisfaction
      and
      that any such Permitted Holder agrees in writing to be bound by this Agreement
      in place of the relevant transferor; provided,
      further,
      that
      such transferor shall remain liable for any breach by such Permitted Holder
      of
      any provision hereunder,
      (ii)
      the sale in an unsolicited broker’s transaction pursuant to Rule 144 under the
      Securities Act of 1933, as amended, or (iii) a Transfer (as defined below)
      by
      the Controlling Shareholders not resulting in the Controlling Shareholders,
      in
      the aggregate, having Transferred more than 5% of the Equity Securities of
      the
      Company on a fully-diluted basis held, directly or indirectly, by all
      Controlling Shareholders as of the date hereof (the “Exempt
      Transfers”).

     

    
      
        
        

      

      
        12

        
          

        

      

      
        
        

      

    

    5.8 Prohibited
      Transfers.
      (a)
      Notwithstanding anything to the contrary contained herein, to the extent
      permitted under applicable laws, the Controlling Shareholders shall not, without
      the prior written consent of Citadel, directly or indirectly, transfer, sell,
      assign, pledge, hypothecate, encumber, or otherwise dispose of, all or any
      portion of any Common Stock or other Equity Securities of the Company (for
      the
      avoidance of doubt, including any Equity Securities of Whitehorse held by Mr.
      Tu) or any economic interest therein (including without limitation by means
      of
      any participation or swap transaction or by entering into any voting trust
      or
      other contract, option or other arrangement or understanding with respect
      thereto) (each, a “Transfer”)
      through one or a series of transactions to any Person;
      provided
      that the
      foregoing provision shall not apply to any Exempt Transfer.
      For the
      avoidance of doubt, the Encumbered Securities shall not be subject to this
      Section
      5.8.

     

    (b) Any
      attempt by any Controlling Shareholder to Transfer any Equity Securities of
      the
      Company or Whitehorse held (directly or indirectly) by it in violation of this
      Section shall be void and each of the Company and Whitehorse hereby agrees
      that
      it will not effect such Transfer on its share register nor will it treat any
      alleged transferee as the holder of such Equity Securities.

     

    6. Board
      Observer.

     

    6.1 Appointment
      of Board Observer.

     

    (a)
       As
      long
      as Citadel holds the Minimum Holdings, Citadel shall have the right to appoint
      one individual (the “Board
      Observer”)
      who
      will have the right to participate in meetings of the Board of Directors of
      the
      Company (the “Company
      Board”)
      as an
      observer. The Board Observer shall be entitled to attend each meeting of the
      Company Board but shall not be entitled to any management power or voting rights
      at such meetings.

     

    (b) Citadel
      shall provide the Company Board with notice of the name, address and phone
      number of the individual selected by Citadel to serve as the Board Observer.
      Such notice shall be provided to the Company in the manner set forth in this
      Agreement.

     

    (c) The
      Board
      Observer’s rights pursuant to this Section
      6
      shall be
      effective only upon the Board Observer and the Company entering into a
      confidentiality agreement with terms to be mutually and reasonably agreed upon
      by and between Citadel and the Company.

     

    6.2 Notice
      of Board Meetings.
      The
      Company shall give the Board Observer notice of any meetings of the Company
      Board or any committee of the Company Board in the same manner as notice is
      given to individuals who are members of the Company Board or such committee
      and
      shall provide the Board Observer with the same materials provided to the
      individuals who are members of the Company Board or such committee; provided
      that
      if
      the provision of such materials would waive any legal privilege, the Company
      shall not be required to provide such materials to the Board
      Observer.

     

    
      
        
        

      

      
        13

        
          

        

      

      
        
        

      

    

    6.3 Removal
      and Replacement of Board Observer.
      Citadel
      shall have the sole and absolute right to remove an individual currently acting
      as Board Observer and to replace such individual with another individual who
      will act as the Board Observer. Upon any replacement of a Board Observer,
      Citadel will provide the Company Board with notice of the contact information
      for the replacement Board Observer in the manner set forth in Section
      6.2.

     

    7. Indemnification.

     

    (a) In
      addition to all rights and remedies available to Citadel at law or in equity,
      each of the Group Companies shall jointly and severally indemnify Citadel,
      and
      its Affiliates, stockholders, officers, directors, employees, agents,
      representatives, successors and permitted assigns (collectively, the
“Indemnified
      Parties”)
      and
      save and hold each of them harmless against and pay on behalf of or reimburse
      such party as and when incurred for any loss (including, without limitation,
      diminutions in value), liability, demand, claim, action, cause of action, cost,
      damage, deficiency, tax, penalty, fine or expense, whether or not arising out
      of
      any claims by or on behalf of any third party, including interest, penalties,
      reasonable attorneys’ fees and expenses and all reasonable amounts paid in
      investigation, defense or settlement of any of the foregoing (collectively,
      “Losses”)
      which
      any such party may suffer, sustain or become subject to, as a result of, in
      connection with, relating or incidental to or by virtue of:

     

    (i)  any
      misrepresentation or breach of a representation or warranty on the part of
      any
      of the Group Companies herein;

     

    (ii) any
      nonfulfillment or breach of any covenant or agreement on the part of any of
      the
      Group Companies herein; or

     

    (iii) any
      action, demand, proceeding, investigation or claim by any third party
      (including, without limitation, governmental agencies) against or affecting
      any
      Group Company and/or its Affiliates or Subsidiaries which, if successful, would
      give rise to or evidence the existence of or relate to a breach of (A) any
      of
      the representations or warranties at the time made or (B) covenants of any
      of
      the Group Companies.

     

    (b) In
      addition to all rights and remedies available to Citadel at law or in equity,
      each of the Controlling Shareholders shall jointly and severally indemnify
      the
      Indemnified Parties and save and hold each of them harmless against and pay
      on
      behalf of or reimburse such party as and when incurred for any Losses which
      any
      such party may suffer, sustain or become subject to, as a result of, in
      connection with, relating or incidental to or by virtue of:

     

    (i)  any
      misrepresentation or breach of a representation or warranty under Sections 2.1
      and
2.2
      herein
      of a Controlling Shareholder; or

     

    (ii) any
      action, demand, proceeding, investigation or claim by any third party
      (including, without limitation, governmental agencies) against or affecting
      a
      Controlling Shareholder which, if successful, would give rise to or evidence
      the
      existence of or relate to a breach of any such representations or warranties
      at
      the time made of a Controlling Shareholder.

     

    
      
        
        

      

      
        14

        
          

        

      

      
        
        

      

    

    (c) Notwithstanding
      the foregoing, and subject to the following sentence, upon judicial
      determination, which is final and no longer appealable, that the act or omission
      giving rise to the indemnification hereinabove provided resulted primarily
      out
      of or was based primarily upon the Indemnified Party’s gross negligence, fraud
      or willful misconduct (unless such action was based upon the Indemnified Party’s
      reliance in good faith upon any of the representations, warranties, covenants
      or
      promises made by any Group Company or Controlling Shareholder herein) by the
      Indemnified Party, neither any Group Company nor any Controlling Shareholder,
      as
      the case may be, shall be responsible for any Losses sought to be indemnified
      in
      connection therewith, and each of the Group Companies or the Controlling
      Shareholders, as the case may be, shall be entitled to recover from the
      Indemnified Party all amounts previously paid in full or partial satisfaction
      of
      such indemnity, together with all costs and expenses of such Group Company
      or
      Controlling Shareholder, as the case may be, reasonably incurred in effecting
      such recovery, if any.

     

    (d) All
      indemnification rights hereunder shall survive indefinitely, regardless of
      any
      investigation, inquiry or examination made for or on behalf of, or any knowledge
      of Citadel and/or any of the other Indemnified Parties.

     

    (e) The
      indemnity obligations that each of the Group Companies and the Controlling
      Shareholders has under this Section shall be in addition to any liability that
      such Group Company and the Controlling Shareholder may otherwise
      have.

     

    (f) Without
      limiting the generality of the foregoing paragraphs in this Section
      7,
      each of
      the Group Companies and Mr. Tu will, jointly and severally, agree to indemnify,
      defend and hold harmless the Indemnified Parties from and against (i) any and
      all losses (including without limitation, losses arising from or as a result
      of
      a decrease in the value of the Company or the value of the Common Stock or
      the
      Notes) incurred by any member of the Indemnified Parties and (ii) any and all
      claims, actions or causes of action, assessments, demands, damages, judgments,
      settlements, liabilities, costs and expenses (including, without limitation,
      interest, penalties and attorneys’ and accounting fees and expenses) of any
      nature whatsoever, asserted against or imposed upon any member of the
      Indemnified Parties, in each case, by reason of or resulting from any breach
      or
      violation (whether such breach or violation was due to actions taken or failure
      to take actions, in whole or in part, prior to or after the date hereof) of
      laws, rules, regulations or orders of any governmental authority by any of
      the
      Group Companies, the Subsidiaries or the Controlling Shareholders.

     

    8. Miscellaneous.

     

    8.1 Termination.
      Except
      for Sections
      7
      and
8,
      which
      shall survive the termination of this Agreement, or as otherwise expressly
      provided herein, this Agreement will be automatically terminated with no further
      effect at such time that Citadel no longer holds the Minimum
      Holdings.

     

    
      
        
        

      

      
        15

        
          

        

      

      
        
        

      

    

    8.2 Specific
      Enforcement.
      Upon a
      breach by any of the Controlling Shareholders or the Group Companies of this
      Agreement, in addition to any such damages as Citadel is entitled to, directly
      or indirectly, by reason of said breach, Citadel shall be entitled to injunctive
      relief against such Controlling Shareholder or Group Company if such relief
      is
      applicable and available, as a remedy at law would be inadequate and
      insufficient. Nothing in this Section shall be construed as limiting Citadel’s
      remedies in any way.

     

    8.3 Notices.
      Notices
      given pursuant to any provision of this Agreement shall be addressed as follows:
      (i) if to the any of the Group Companies or the Controlling Shareholders, to:
      13/F, Shenzhen Special Zone Press Tower, Shennan Road, Futian, Shenzhen, China,
      Fax: (86) 755-83510815, Attention: Mr. Tu Guo Shen, with a copy to Thelen Reid
      Brown Raysman & Steiner LLP, 701 8th
      Street,
      N.W., Washington, DC 20001, Fax: (1-202) 654-1804, Attention: Mr. Lou
      Bevilacqua, Esq., (ii) if to Citadel, to: c/o
      131
      South Dearborn Street, Chicago, Illinois 60609, USA,
      Fax:
(1-312)
      267 7300,
      Attention: Mr.
      Adam
      C. Cooper,
      with a
      copy to 18/F
      Chater House, 8 Connaught Road, Central, Hong Kong, Fax: (852) 3667 5511,
      Attention: Mr. Andrew Fong and Mr. Max Liu,
      and with
      a copy to Simpson Thacher & Bartlett LLP, ICBC Tower 35th Floor, 3 Garden
      Road, Central, Hong Kong SAR, China, Fax: (852) 2869 7694, Attention: Mr.
      Youngjin Sohn, Esq.

     

    All
      notices, requests, consents and other communications hereunder shall be in
      writing and shall be personally delivered or delivered by overnight courier
      or
      mailed by first-class registered or certified mail, postage prepaid, return
      receipt requested, or by facsimile transmission. Every notice hereunder shall
      be
      deemed to have been duly given or served on the date on which personally
      delivered, with receipt acknowledged, upon transmission by facsimile and
      confirmed facsimile receipt, or two (2) days after the same shall have been
      deposited with a reputable international overnight courier.

     

    8.4 Amendments
      and Waiver.
      Unless
      otherwise specifically stated herein, any term of this Agreement may be amended
      with the written consent of the party against whom enforcement may be sought
      and
      the observance of any term of this Agreement may be waived (either generally
      or
      in a particular instance and either retroactively or prospectively) by the
      Company and the Controlling Shareholders, in the case of Citadel’s obligations,
      and by Citadel in the case of the obligations of any other parties hereto.
      No
      waivers of or exceptions to any term, condition or provision of this Agreement,
      in any one or more instances, shall be deemed to be, or construed as, a further
      or continuing waiver of any such term, condition or provision.

     

    8.5 Entire
      Agreement.
      This
      Agreement, together with the other Transaction Documents, embodies the entire
      agreement and understanding between the parties hereto and supersedes all prior
      agreements and understandings relating to the subject matter
      hereof.

     

    8.6 Severability.
      The
      invalidity or unenforceability of any provision of this Agreement shall not
      affect the validity or enforceability of any other provisions of this Agreement
      to the extent permitted by law.

     

    8.7 Governing
      Law.
      This
      Agreement shall be governed by and construed in accordance with the laws of
      the
      State of New York. 

     

    8.8 Successors
      and Assigns.
      Except
      as otherwise provided herein, the terms and conditions of this Agreement shall
      be binding upon, and inure to the benefit of, the respective representatives,
      successors and assigns of the parties hereto. Unless otherwise provided herein,
      Citadel
      may
      assign its rights hereunder to any of
      its
      Affiliates
      (as
      defined below).
      For
      purposes of this Agreement, an “Affiliate”
shall
      refer to: (i) any Person directly or indirectly controlling, controlled by
      or
      under common control with another Person, (ii) any Person owning or controlling
      50% or more of the outstanding voting securities of such other Person, (iii)
      any
      officer, director or partner of such Person, (iv)
      a trust
      for the benefit of such Person referred to in the foregoing clause (ii) of
      this
      definition. 

     

    
      
        
        

      

      
        16

        
          

        

      

      
        
        

      

    

    8.9 Counterparts.
      This
      Agreement may be executed in two or more counterparts, each of which shall
      be
      deemed an original, but all of which together shall constitute one and the
      same
      instrument.

     

    

     

    [Signature
      page(s) to follow]

     

    

    
      
        
        

      

      
        17

        
          

        

      

      
        
        

      

    

    IN
      WITNESS WHEREOF, the undersigned have executed this Investor Rights Agreement
      as
      of the day and year written above.

     

    

     

    GROUP
      COMPANIES:

    

    China
      Security & Surveillance Technology, Inc.

    
       

      By:
        /s/ Tu Guo
        Shen                                                    

      Name:
        Tu
        Guo Shen 

      Title:
        Chief Executive Officer

    

     

    

    China
      Safetech Holdings Limited

     

    
      By:
        /s/ Tu Guo
        Shen                                                    

      Name:
        Tu
        Guo Shen 

      Title:
        Chief Executive Officer

    

    China
      Security & Surveillance 

    Technology
      (HK) Ltd.

     

    
      By:
        /s/ Tu Guo
        Shen                                                    

      Name:
        Tu
        Guo Shen 

      Title:
        Chief Executive Officer

    

    Golden
      Group Corporation (Shenzhen) Limited

     

    
      By:
        /s/ Tu Guo
        Shen                                                    

      Name:
        Tu
        Guo Shen 

      Title:
        Chief Executive Officer

    

    

    

    Shanghai
      Cheng Feng Digital 

    Technology
      Co., Ltd.

     

    
      By:
        /s/ Tu Guo
        Shen                                                    

      Name:
        Tu
        Guo Shen 

      Title:
        Chief Executive Officer

    

    

     

    China
      Security & Surveillance 

    Technology
      (PRC), Inc.

     

    
      By:
        /s/ Tu Guo
        Shen                                                    

      Name:
        Tu
        Guo Shen 

      Title:
        Chief Executive Officer

    

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    CONTROLLING
      SHAREHOLDERS:

     

    By:
      /s/ Tu Guo
      Shen                                                    

    Mr.
      Tu
      Guo Shen

    
 

    By:
      /s/ Li Zhi
      Qun                                 
                      

     Ms.
      Li
      Zhi Qun   

    

    

    

    Whitehorse
      Technology Limited

     

     

      By:
        /s/ Tu Guo
        Shen                                                    

      Name:
        Tu
        Guo Shen 

      Title:
        Chief Executive Officer

    

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    Accepted
      and Agreed to:

     

    CITADEL
      EQUITY FUND LTD.

    

    By:
      Citadel Limited Partnership, its Portfolio Manager

    

    By:
      Citadel Investment Group, L.L.C., its General Partner

    

    By:
      /s/ Andrew
      Fong                                     

    Name:
      Andrew Fong

    Title:
      Authorized Signatory

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00117-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00117-of-00352.parquet"}]]