Document:

Unassociated Document

    

      Exhibit
        10.1

      

      (English
        Translation)

      

      May
        11,
        2007

      

        
          	 	
                  The
                    Transferor:

                	
                  LI
                    Yi

                

        

        

        
          	 	
                  The
                    Transferee:

                	
                  CHINA
                    SAFETECH HOLDINGS LIMITED

                

        

        

        
          	 	
                  Party
                    C:

                	
                  CHINA
                    SECURITY & SURVEILLANCE TECHNOLOGY,
                    INC.

                

        

      

      
        	 
	
                 

                Equity
                  Transfer Agreement

                of

                All
                  Issued Shares 

                of
                  

                Link
                  Billion Investment Limited

                 

              

      

      

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

      

      This
        Equity Transfer Agreement (the “Agreement”)
        is
        entered into by and among the following parties on May 11, 2007:

      

        
          	
                  (1)

                	
                  LI
                    Yi
                    whose address is Flat 616, Sheung Tsan House, Sheung Tak Estate,
                    Tseung
                    Kwan O, Kowloon, Hong Kong (hereinafter referred to as “Transferor”);

                

        

        

        
          	
                  (2)

                	
                  CHINA
                    SAFETECH HOLDINGS LIMITED,
                    a
                    company incorporated in British Virgin Islands, whose address
                    is
                    F13, Press Plaza, Shennan Avenue Special Zone, Futian District,
                    Shenzhen
                    (hereinafter
                    referred to as “Transferee”);

                

        

        

        
          	
                  (3)

                	
                  CHINA
                    SECURITY & SURVEILLANCE TECHNOLOGY, INC.,
                    a
                    company incorporated in Delaware, United States, whose address
                    is F13,
                    Press Plaza, Shennan Avenue Special Zone, Futian District, Shenzhen
                    (hereinafter
                    referred to as “Party
                    C”);

                

        

        

        
          	 	
                  The
                    Transferor, the Transferee and Party C above shall be individually
                    referred to as a “Party”
                    and collectively referred to as the “Parties”.

                

        

      

      
         

        
          	
                  WHEREAS

                	
                  LINK
                    BILLION INVESTMENTS LIMITED,
                    a
                    limited liability company legally organized and validly existing
                    under the
                    Company Ordinance of Hong Kong, whose information is listed as
                    Exhibit I
                    (hereinafter referred to as “Link
                    Billion”),
                    and whose all issued shares are beneficially held by the
                    Transferor.

                

        

        

        
          	
                  WHEREAS

                	
                  Link
                    Billion invests and establishes HiEasy
                    Electronic Technology Development Co., Ltd.,
                    a
                    wholly foreign owned company legally organized and validly existing
                    under
                    the laws of People’s Republic of China, whose information is listed as
                    Exhibit III (hereinafter referred to as “HiEasy”),
                    and whose all shares are beneficially held by Link
                    Billion.

                

        

        

        
          	
                  WHEREAS

                	
                  The
                    Transferee desires to purchase from the Transferor and the Transferor
                    desires to transfer to the Transferee 100% issued shares of Link
                    Billion.
                    Upon completion of the transfer under this Agreement, the Transferee
                    shall
                    indirectly and fully acquire 100% shares and control power of
                    HiEasy.

                

        

        

        
          	
                  WHEREAS

                	
                  The
                    Transferor and the Transferee have entered into Letter of Intent
                    of Share
                    Transfer (hereinafter referred to as “Letter
                    of Intent”)
                    on October 9, 2006.

                

        

      

      

      NOW,
        THEREFORE,
        the
        Parties hereby agree as follows:

      

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

      

      Article
        1 Definitions

      

        
          	
                  1.1

                	
                  Unless
                    otherwise defined in this Agreement, the following terms shall
                    have the
                    meanings indicated as follow:

                

        

      

      

        
          	 	
                  “Company
                    Ordinance”

                	
                  means
                    Chapter 32 Company Ordinance of the laws of Hong
                    Kong;

                

        

        

        
          	 	
                  “Shares
                    for Transfer”

                	
                  means
                    10,000 common share of Link Billion owned by the Transferor to
                    be
                    transferred from the Transferor to the Transferee under this
                    Agreement,
                    constituting 100% issued and outstanding stock of Link Billion
                    (for
                    details please refer to Exhibit II - Part
                    A);

                

        

        

        
          	 	
                  “Share
                    Transfer”

                	
                  means
                    100% issued shares of Link Billion to be transferred from the
                    Transferor
                    to the Transferee under Article 2.1
                    hereof;

                

        

        

        
          	 	
                  “Balance”

                	
                  shall
                    have the meaning as provided in Article
                    3.2.1(2);

                

        

        

        
          	 	
                  “Total
                    Transfer Price”

                	
                  means
                    total price paid to the Transferor by the Transferee under Article
                    3.1
                    hereof;

                

        

        

        
          	 	
                  “Closing
                    Date”

                	
                  May
                    11, 2007;

                

        

        

        
          	 	
                  “Accounts
                    of Link Billion”

                	
                  means
                    management and financial statements of Link Billion as of December
                    31,
                    2007, the copies of which are attached as Exhibit A
                    hereof;

                

        

        

        
          	 	
                  “HiEasy
                    Accounts”

                	
                  means
                    financial statements of HiEasy as of December 31, 2007 verified
                    by PRC
                    auditors, the copies of which are attached as Exhibit B
                    hereof;

                

        

        

        
          	 	
                  “Business
                    Day and Working Hours”

                	
                  means
                    the days when banks in Hong Kong normally provide general bank
                    services
                    (excluding Saturday, Sunday and other Hong Kong public holidays)
                    and
                    general working hours;

                

        

        

        
          	 	
                  “PRC”

                	
                  means
                    People’s Republic of China;

                

        

        

        
          	 	
                  “Hong
                    Kong”

                	
                  means
                    Hong Kong Special Administrative Region of
                    PRC;

                

        

         

        
          
            
            

          

          
            2

            
              

            

          

          
            
            

          

        

         

        
          	 	
                  “HKD”

                	
                  means
                    legal currency of Hong Kong;

                

        

        

        
          	 	
                  “USD”

                	
                  means
                    legal currency of United States;

                

        

        

        
          	 	
                  “RMB”

                	
                  means
                    legal currency of PRC.

                

        

      

      

        
          	
                  1.2

                	
                  In
                    this Agreement:

                

        

        

          
            	 	
                    (i)

                  	
                    Any
                      rule or law
                      involved herein shall include any and all amendments, supplements
                      or
                      reenactments hereof from time to
                      time;

                  

          

          

          
            	 	
                    (ii)

                  	
                    Words
                      and terms contained in Companies Ordinance shall be interpreted
                      according
                      to definitions stipulated in Companies Ordinance except as
                      otherwise
                      defined or stated in this Agreement, however, any amendment
                      or change to
                      Companies Ordinance shall be excluded which is not enforced
                      before or on
                      the date to execute this Agreement.

                  

          

          

          
            	 	
                    (iii)

                  	
                    Single
                      word also includes plural meaning; word referred to any gender
                      also
                      includes the other gender and neuter, word referred to person
                      also
                      includes groups (legal person or non-legal person) and (under
                      every
                      circumstance), vice versa;

                  

          

          

          
            	 	
                    (iv)

                  	
                    Hereabove
                      mentioned the parties, descriptions, exhibits, appendices and
                      terms and
                      conditions shall be respectively referred to the parties, descriptions,
                      exhibits, appendices and terms and conditions hereof;
                      and

                  

          

          

          
            	 	
                    (v)

                  	
                    The
                      headings and table of contents in this Agreement are provided
                      for
                      reference only and will not affect its construction or
                      interpretation.

                  

          

        

      

      

      Article
        2 Share Transfer

      

        
          	
                  2.1

                	
                  As
                    per stipulations in this Agreement, the Transferor, as the owner
                    of all
                    issued and outstanding shares of Link Billion (for more details
                    please
                    refer to Part A, Exhibit II), will transfer such Shares for Transfer
                    to
                    the Transferee (for more details please refer to Part B, Exhibit
                    II).
                    After such transfer, the Transferee will own 100% issued and
                    outstanding
                    shares of Link Billion.

                

        

        

        
          	
                  2.2

                	
                  Upon
                    the completion of transaction hereunder, Shares for Transfer
                    shall not be
                    attached with any mortgage, lien or property encumbrances of
                    any form, and
                    Shares for Transfer shall be transferred with all rights attached
                    or
                    accumulated thereto, including all dividends, profits, the investment
                    in
                    HiEasy by Link Billion and relevant benefits accumulated and
                    distributed
                    from the completion date.

                

        

        

        
          
            
            

          

          
            3

            
              

            

          

          
            
            

          

        

        

        Article
          3 Transfer
          Price

        

        
          	
                  3.1

                	
                  Transfer
                    Price

                

        

        

        
          	 	
                  The
                    Transferor and the Transferee agree, the Transferor shall transfer
                    to the
                    Transferee Shares for Transfer. In return, the Transferee shall
                    pay to the
                    Transferor Total Transfer Price of RMB80,000,000, consisting
                    of RMB
                    40,000,000 in cash and shares of Party C with the value of RMB
                    40,000,000.

                

        

        

        
          	
                  3.2

                	
                  Method
                    of Payment

                

        

      

      

        
          	 	
                  3.2.1

                	
                  The
                    Transferee shall pay the Total Transfer Price to the Transferor
                    as
                    follows:

                

        

      

       

      
        
          	 	
                  (1)

                	
                  The
                    Transferee has paid to the Transferor RMB32,292,750
                    before the Closing Date. 

                

        

        

        
          	 	
                  (2)

                	
                  The
                    Transferee shall pay the remaining price of RMB7,707,250 (“Balance”)
                    upon the execution of this
                    Agreement.

                

        

        

        
          	 	
                  (3)

                	
                  The
                    Transferee (through its parent company, Party C) shall issue
                    restricted
                    shares equal to RMB40,000,000
                    to the
                    Transferor or its designees within
                    ninety days after the execution date of this Agreement, and the
                    share
                    value shall be calculated based on the average closing price
                    (USD6.4015/share) of twenty trading days before October 9, 2006,
                    which
                    means that the Transferee shall issue 811,804 shares to the Transferor.
                    The Transferor shall pledge certain shares to the Transferee
                    as provided
                    under Article 5.2 hereof.

                

        

      

      

        
          	 	
                  3.2.2

                	
                  The
                    Transferee shall remit the Balance to the following bank accounts
                    designated by the Transferor:

                

        

      

      

        USD
          Account

        Account
          Name: 

        Account
          No.: 

        Bank:
          

        Address
          of the bank: 

        SWIFT:

         

        
          
            
            

          

          
            4

            
              

            

          

          
            
            

          

        

      

       

      

        
          	
                  3.3

                	
                  Exchange
                    Rate

                

        

        

        
          	 	
                  Cash
                    of the total transfer price shall be paid by the Transferee to
                    the
                    Transferor in USD. Exchange Rate of RMB against USD shall be
                    1:7.76971.

                

        

        

        Article
          4 Closing

        

        
          	
                  4.1

                	
                  The
                    Share Transfer shall be completed on the Closing Date at the
                    place
                    stipulated by both parties in accordance with Exhibit
                    V.

                

        

        

          
            	
                    4.2

                  	
                    Terms
                      and conditions to be performed hereof shall remain in force
                      after the
                      Closing Date.

                  

          

           

        

        
          	
                  4.3

                	
                  From
                    the Closing Date, debts and credits and all risks of Link Billion
                    and
                    HiEasy shall be promptly borne by the Transferee (except otherwise
                    undertaken by the Transferor in Exhibit
                    IV).

                

        

        

        
          	
                  4.4

                	
                  From
                    the Closing Date, the Transferee shall have the right to consolidate
                    profits of Link Billion and HiEasy with the Transferee group.
                    At the
                    meantime, the Transferee shall have the right to appoint manager
                    or
                    financial person, or authorize to appoint existing personnel
                    of Link
                    Billion and HiEasy to take charge of management and operation
                    of Link
                    Billion and HiEasy as well as all files, materials, financial
                    documents
                    and so on. The Transferor shall not enjoy any right and/or interest
                    as
                    shareholder of Link Billion and HiEasy from the Closing Date
                    because of
                    such Share Transfer, provided that all relevant obligations shall
                    be borne
                    by the Transferor under law and this
                    Agreement.

                

        

        

        Article
          5 Warrants,
          Representations and Covenants of the Transferor

        

        
          	
                  5.1

                	
                  In
                    addition to the information disclosed in this Agreement, the
                    Transferor
                    shall warrant, represent and covenant to the Transferee under
                    terms and
                    conditions stipulated in Exhibit IV, which also constitute the
                    base for
                    the Transferee to accept such shares for
                    transfer.

                

        

        

        
          	
                  5.2

                	
                  The
                    Transferor covenants that the Transferee’s profits after tax in 2007
                    audited by US Auditors shall reach three levels: RMB6,000,000,
                    RMB8,000,000 and RMB10,000,000. If profits after tax reach RMB6,000,000,
                    the Transferee shall release shares pledge of the Transferor
                    equivalent to
                    RMB5,000,000; if Link Billion and HiEasy reach profits after
                    tax of
                    RMB8,000,000, the Transferee shall release shares pledge of the
                    Transferor
                    equivalent to RMB7,000,000; and if Link Billion and HiEasy reach
                    profits
                    after tax of RMB10,000,000, the Transferee shall release shares
                    pledge of
                    the Transferor equivalent to RMB10,000,000. The Transferor also
                    covenants
                    that the Transferor’s profits after tax in 2008 which are audited by US
                    Auditors shall reach three levels: RMB11,000,000, RMB13,000,000,
                    and
                    RMB15,000,000. If Link Billion and HiEasy reach profits after
                    tax of
                    RMB11,000,000, the Transferee shall release shares pledge of
                    the
                    Transferor equivalent to RMB7,500,000; if Link Billion and HiEasy
                    reach
                    profits after tax of RMB13,000,000, the Transferee shall release
                    shares
                    pledge of the Transferor equivalent to RMB10,000,000; and if
                    Link Billion
                    and HiEasy reach profits after tax of RMB15,000,000, the Transferee
                    shall
                    release shares pledge of the Transferor equivalent to
                    RMB15,000,000.

                

        

         

        
          
            
            

          

          
            5

            
              

            

          

          
            
            

          

        

        
          

          Article
            6 Warrants,
            Representations and Covenants of the Transferee and Party
            C

          

          
            	
                    6.1

                  	
                    The
                      Transferee covenants to keep the organization structure of
                      Link Billion
                      and HiEasy after the Share Transfer, expand its brand influence,
                      fully
                      support business development of Link Billion and HiEasy. The
                      Transferee
                      shall also provide financial support as required by
                      business.

                  

          

          

          
            	
                    6.2

                  	
                    The
                      Transferee undertakes that existing employees of Link Billion
                      and HiEasy
                      shall remain employed given that they are willing to stay and
                      their stay
                      will not impede development of companies after Share Transfer;
                      arrangement
                      of senior management and technical staff and the operation
                      rights and
                      benefits of such persons shall be governed by separate agreements
                      to be
                      entered after the Share Transfer. In addition, the Transferee
                      covenants
                      that benefits of such persons shall not be lower than their
                      previous
                      benefits.

                  

          

          

          
            	
                    6.3

                  	
                    The
                      Transferee shall provide appropriate operation funds to Link
                      Billion and
                      HiEasy in order to support the Transferor to realize profits
                      after tax for
                      2007 and 2008, dates and amounts of providing such funds shall
                      be
                      otherwise stipulated.

                  

          

          

          
            	
                    6.4

                  	
                    Party
                      C shall file relevant reports with the U.S. Securities and
                      Exchange
                      Committee (“SEC”) according to law and issue shares to the Transferor
                      under Article 3.2.1(3) hereof after the execution of this
                      Agreement.

                  

          

          

          Article
            7 Governing
            Law

          

          This
            Agreement shall be governed and construed by rules and laws of Hong
            Kong.

          

          Article
            8 Settlement
            of Disputes and Agent of Receiving Legal Procedure
            Documents

          

          
            	
                    8.1

                  	
                    Any
                      dispute arising out of or relating to this Agreement, shall
                      be settled by
                      friendly negotiation and discussion. If no agreement is reached
                      through
                      friendly negotiation and discussion, such dispute shall be
                      finally
                      arbitrated by Hong Kong International Arbitration Center(HKIAC)
                      in
                      accordance with HKIAC Arbitration Rules then in effect. Unless
                      otherwise
                      provided in the arbitration rules of HKIAC then in effect,
                      the arbitration
                      shall be the sole and exclusive method and procedure of any
                      dispute
                      arising out of or relating to this
                      Agreement.

                  

          

          

          
            	
                    8.2

                  	
                    The
                      Parties to this Agreement agree that unless not permitted by
                      the
                      applicable laws and rules, the arbitration terms hereto shall
                      be
                      interpreted as and constitute the currently effective arbitration
                      agreement in writing with legal effect, and shall be granted
                      with such
                      effect. The Parties to this Agreement hereby expressly waive
                      any right of
                      possibly requested local administrative, judicial or alternative
                      dispute
                      settlement methods, as the conditions of any settlement procedure
                      which
                      arising our of this
                      Agreement.

                  

          

        

      

       

      
        
          
          

        

        
          6

          
            

          

        

        
          
          

        

      

       

      
        
          	
                  8.3

                	
                  The
                    Parties to this Agreement expressly represent that the award
                    made
                    according to Article 8 hereof shall be final award binding upon
                    the
                    Parties. In addition, the Parties to this Agreement hereby waive
                    the right
                    to appeal the award made according to Article 8 hereof. The Article
                    8
                    shall constitute the most comprehensive exclusive agreement to
                    the extent
                    permitted by the applicable
                    laws.

                

        

      

      

        
          	
                  8.4

                	
                  (1)

                	
                  The
                    Transferee irrevocably entrusts BOYU ENTERPRISE CONSULTING CO.,
                    LIMITED,
                    whose address is Unit B1, 9/F, Loyong Court Commercial Building,
                    212-220
                    Lockhart Road, Wanchai, Hong Kong (“Agent”),
                    to receive legal procedure documents and to be on behalf of the
                    Transferee
                    to receive claims arising out of or relevant to the Agreement
                    or the legal
                    procedures in Hong Kong (including but not limited to, claims
                    for
                    reimbursement, summons, arbitration application and arbitration
                    award)
                    (“Legal Procedure Documents”).

                

        

        

        
          	 	
                  (2)

                	
                  Transferee
                    undertakes to consecutively entrust the Agent as the agent of
                    receiving
                    Legal Procedure Documents, in order to on behalf of the Transferee
                    receive
                    Legal Procedure Documents in Hong Kong and immediately notify
                    the
                    Transferor in writing if the Agent or its address is
                    modified.

                

        

        

        
          	 	
                  (3)

                	
                  The
                    Transferee agrees and confirms that Legal Procedure Documents
                    which have
                    been sent to its Agent shall be deemed as having been sent to
                    any
                    Transferee.

                

        

      

      

        Article
          9 Liabilities
          for Breach of Contract

        

        
          	
                  9.1

                	
                  If
                    any statement or warrants made by any Party in this Agreement
                    is untrue or
                    false, it shall be deemed as breach of contract by the
                    Party.

                

        

        

        
          	
                  9.2

                	
                  Any
                    Party to this Agreement changes minds on purpose and cause the
                    failure of
                    the share transfer, it shall be deemed as breach of contract
                    by the
                    Party.

                

        

        

        
          	
                  9.3

                	
                  The
                    breaching party shall, in addition to performance of other obligations
                    under this Agreement, compensate the observant party all losses,
                    damages,
                    expenses suffered by the observant party due to breach of contract
                    caused
                    by breaching party.

                

        

        

        
          	
                  9.4

                	
                  If
                    the Transferor changes minds on purpose and cause that the shares
                    can not
                    be transferred to the Transferee or the shares is forfeited after
                    transfer, the Transferee shall have the right to terminate the
                    Agreement,
                    and The Transferor shall return the share transfer price or the
                    shares and
                    assume liabilities under Article 9.3 of this
                    Agreement.

                

        

        

        
          
            
            

          

          
            7

            
              

            

          

          
            
            

          

        

        

        Article
          10 Force
          Majeure and Change of Circumstances

        

        
          	
                  10.1
                    

                	
                  If
                    any Party to this Agreement can not perform any part or all of
                    the terms
                    hereto directly or indirectly because of events such as fire,
                    flood,
                    earthquake or other unforeseeable, unavoidable and/or uncontrollable
                    events, the Party shall be exempted from liabilities to the extent
                    as
                    affected by force majeure.

                

        

        

        
          	
                  10.2
                    

                	
                  If
                    any Party or Parties lose(s) its/their interests under this Agreement
                    because of legislation, or administration order or specific administration
                    act of government, any Party shall have the right to terminate
                    this
                    Agreement and to restore to the conditions before the execution
                    of this
                    Agreement.

                

        

        

        
          	
                  10.3
                    

                	
                  Any
                    Party affected by force majeure shall deliver the other Party
                    the written
                    notice regarding the occurrence of force majeure within 12 days
                    after the
                    occurrence of the force majeure
                    event.

                

        

        

        
          	
                  10.4
                    

                	
                  After
                    the occurrence of force majeure event, the Parties to this Agreement
                    shall
                    immediately consultant and decide whether to delay the performance
                    of this
                    Agreement to a day in the future agreed by the Parties or to
                    terminate
                    this Agreement.

                

        

        

        
          	
                  10.5
                    

                	
                  If
                    any Party delays or unable to perform all or part of the terms
                    of this
                    Agreement for more than 30 days as a result of force majeure,
                    the other
                    Party shall have the right to rescind this Agreement, and the
                    Parties
                    shall take all necessary actions to restore the rights and obligations
                    of
                    all parties to their respective original
                    positions.

                

        

        

        Article
          11 Miscellaneous

        

        
          	
                  11.1

                	
                  This
                    Agreement and its involved relevant documents constitute the
                    full
                    understanding of the Parties regarding the share transfer, and
                    replace any
                    previous intention, expression and understanding of the
                    Parties.

                

        

        

        
          	
                  11.2

                	
                  If
                    any term of this Agreement is regarded as illegal, invalid or
                    unenforceable at any time, the validity, effectiveness and enforceability
                    of other terms of this Agreement shall not affected or impaired
                    in any way
                    and shall remain the full validity.

                

        

        

        
          	
                  11.3

                	
                  This
                    Agreement shall bind the Parties and their respective successors
                    and
                    assignees. The interests of this Agreement shall be assigned
                    to the
                    Parties hereto and their respective successors and assignees.
                    Without the
                    permission of the Parties in writing, any Party shall not amend,
                    modify or
                    revise this Agreement.

                

        

         

        
          
            
            

          

          
            8

            
              

            

          

          
            
            

          

        

         

        
          	
                  11.4

                	
                  This
                    Agreement shall be effective upon
                    signing.

                

        

        

        
          	
                  11.5

                	
                  Without
                    the permission of the Parties in writing (the relevant permission
                    shall
                    not be withheld without reasonable reasons), the Parties hereto
                    shall not
                    transfer any rights or obligations under this
                    Agreement.

                

        

        

        
          	
                  11.6

                	
                  The
                    Parties agree to bear all the cost and expense in respect of
                    the
                    negotiation, preparation, execution and performance of the Agreement
                    and
                    the taxes arising from the transfer of Shares for Transfer. The
                    stamp tax
                    and all other tax and expenses arising out of the transfer of
                    Shares for
                    Transfer (including but not limited to, arising out of in China
                    or in any
                    other areas), shall be borne and paid by the
                    Transferor.

                

        

        

        
          	
                  11.7

                	
                  Unless
                    provided and required by laws, regulations, order or judgments
                    by the
                    competent authorities or courts (including, but not limited to,
                    applicable
                    regulation of security exchanges), without the previous permission
                    of the
                    other Party in writing (the relevant permission shall not be
                    withheld
                    without reasonable reasons), any Party shall not make or distribute
                    any
                    related press statement or
                    announcement.

                

        

        

        
          	
                  11.8

                	
                  Without
                    the prior permission of the other Party in writing, any Party
                    shall not
                    disclose the Agreement or any content or material in connection
                    with any
                    transaction of this Agreement, excluding the following
                    disclosure:

                

        

        

          
            	 	
                    (1)

                  	
                    the
                      disclosure is made according to the provisions of applicable
                      laws,
                      regulations and rules (including, but not limited to, regulations
                      of
                      security exchanges) or requirements of relevant government
                      authorities or
                      supervision authorities, or court
                      orders;

                  

          

          

          
            	 	
                    (2)

                  	
                    the
                      disclosure is made to Link Billion, HiEasy,
                      or its higher competent authorities or approval and examination
                      authorities, or to contacted bank or professional consultant
                      of the
                      disclosing Party;

                  

          

          

          
            	 	
                    (3)

                  	
                    the
                      disclosure is made by the Transferor to the company of its
                      company group
                      or senior management thereof.

                  

          

        

         

        
          	
                  11.9

                	
                  If
                    any term of this Agreement is or becomes illegal, invalid or
                    unenforceable
                    at any time in any respect, other terms of this Agreement shall
                    not be
                    affected or impaired.

                

        

        

        
          	
                  11.10

                	
                  Any
                    notice required to be sent under this Agreement shall be sent
                    in writing.
                    The notice shall be delivered to the following address or fax
                    number or
                    other address or fax number that the recipient designates according
                    to
                    this Agreement:

                

        

      

      

        
          	 	
                  (1)

                	
                  The
                    Transferor:

                	
                  LI
                    Yi

                  
                    Address:
                      Flat 616, Sheung Tsan House, Sheung Tak Estate, Tseung Kwan
                      O, Kowloon,
                      Hong Kong

                    Telephone: (852)
                      2116 1199

                    Fax:              (852)
                      2116 1232

                  

                

        

      

       

      
        
          
          

        

        
          9

          
            

          

        

        
          
          

        

      

      

        	
              	
                (2)

              	
                The
                  Transferee:

              	
                CHINA
                  SAFETECH HOLDINGS LIMITED

                
                  
                    Address:
                      Floor
                      13, Press Plaza, Shennan Avenue Special Zone, Futian District,
                      Shenzhen

                    Telephone:
                      (86-755)
                      8351 0888

                    Fax:             
                      (86-755) 8351 0815

                  

                

              

      

       

      
        	
              	
                (3)

              	
                Party
                  C: 

              	
                CHINA
                  SECURITY & SURVEILLANCE TECHNOLOGY, INC.

                
                  
                    Address:
                      Floor
                      13, Press Plaza, Shennan Avenue Special Zone, Futian District,
                      Shenzhen

                    Telephone:
                      (86-755)
                      8351 0888

                    Fax:         
                         
                      (86-755) 8351 0815

                  

                

              

      

      
        

        
          	
                  11.11

                	
                  Any
                    notice can be sent by mail with postage pre-paid, personal delivery,
                    courier with good reputation or by facsimile, and shall be deemed
                    as
                    delivered at the following time:

                

        

        

        
          	 	
                  (1)

                	
                  two
                    days (seven days if sending by airmail with postage prepaid)
                    after post
                    (the date of postmark is the posting date) for those sent by
                    mail with
                    postage prepaid;

                

        

        

        
          	 	
                  (2)

                	
                  the
                    next business day for those sent by
                    fax;

                

        

        

        
          	 	
                  (3)

                	
                  the
                    receiving time for those sent by courier or personal
                    delivery.

                

        

        

          Any
            notice to the Transferee, when properly delivered to any Transferee,
            shall be
            regarded as delivered to the other Transferee.

        

        

        
          	
                  11.12

                	
                  This
                    Agreement shall be written in Chinese in three copies with each
                    Party
                    holding one copy.

                

        

         

        
          
            
            

          

          
            10

            
              

            

          

          
            
            

          

        

IN
        WITNESS WHEREOF,
        this
        Agreement has been executed by the Parties on the date first above written
        and
        the Parties confirm that the Parties have carefully reviewed and fully
        understand all the provisions of the Agreement.

      

      
        	
                The
                  Transferor

                LI
                  Yi

              	 	 
	
                Signature:
                  /s/
                  Li Yi

              	 	 
	
                Place
                  of Signature: Shenzhen

              	 	 

      

      

      Witness:
        PENG
        Yaoguang

      

      The
        Transferee

      

      
        	
                TU
                  Guoshen
                  for and on behalf of

                CHINA
                  SAFETECH HOLDINGS 

                LIMITED 

              	 	 
	
                Signature:
                  /s/
                  Tu Guoshen

                Place
                  of Signature: Shenzhen

              	 	 
	
                 

                Witness:
                  LUO
                  Ganqi

                 

                Party
                  C

                To
                  execute, chop and deliver

                TU
                  Guoshen
                  for and on behalf of

                CHINA
                  SECURITY &

                SURVEILLANCE
                  

                TECHNOLOGY,
                  INC.

              	 	 
	 	 	 
	
                Place
                  of Signature: Shenzhen

                 

                Witness:
                  LUO
                  Ganqi

              	 	 

      

       

      
        
          
          

        

        
          11

          
            

          

        

        
          
          

        

      

      Exhibit
        I

       

      Information
        of Link Billion

      

        
          	
                  Name
                    in Chinese

                	
                  :

                	
                  
                    [Chinese
                      Language]

                  

                
	 	 	 
	
                  Name
                    in English

                	
                  :

                	
                  LINK
                    BILLION INVESTMENT LIMITED

                
	 	 	 
	
                  Place
                    of Registration

                	
                  :

                	
                  Hong
                    Kong

                
	 	 	 
	
                  Registered
                    Address

                	
                  :

                	
                  Unit
                    B1, 9/F, Loyong Court Commercial Building, 212- 220 Lockhart
                    Road,
                    Wanchai, Hong Kong

                
	 	 	 
	
                  Date
                    of Registration and Establishment :
                    February
                    26, 2007

                
	 	 	 
	
                  Company
                    Form

                	
                  :

                	
                  Limited
                    Liability Company

                
	 	 	 
	
                  Registered
                    No.

                	
                  :

                	
                  1112061

                
	 	 	 
	
                  Director

                	
                  :

                	
                  LI
                    Yi

                
	 	 	 
	
                  Company
                    Secretary

                	
                  :

                	
                  JPS
                    CONSULTING LIMITED

                
	 	 	 
	
                  Shares

                	
                  :

                	
                  Legally:
                    HKD10,000, divided into 10,000 shares with face value of HKD1.00
                    per
                    share

                  Issued
                    and fully paid: HKD10,000,
                    divided into 10,000 share with face value of HKD1.00 per
                    share

                

        

      

       

      
        
          
          

        

        
          12

          
            

          

        

        
          
          

        

      

       

      Exhibit
        II

       

      Part
        A

       

      Information
        of Share for Transfer

      

        
          	
                   

                	
                   

                	
                   

                	
                   

                	
                   

                	
                   

                	
                   

                	
                   

                	
                  Percent
                    of 

                	
                   

                
	
                  Company

                	
                   

                	
                   

                	
                  Registered
                    Shareholder

                	
                   

                	
                   

                	
                  Quantity
                    of Common Shares

                	
                   

                	
                   

                	
                  Face
                    Value Per Share

                	
                   

                	
                   

                	
                  issued
                    Shares

                	
                   

                
	
                   

                	
                   

                	
                   

                	
                   

                	
                   

                	
                   

                	
                   

                	
                   

                	
                   

                	
                   

                	
                   

                	
                   

                	
                   

                	
                   

                
	
                  Link
                    Billion

                	
                   

                	
                   

                	
                  LI
                    Yi

                	
                   

                	
                   

                	
                  10,000

                	
                   

                	
                   

                	
                  HKD
                    1 yuan

                	
                   

                	
                   

                	
                  100%

                	
                   

                

        

      

      

      Part
        B

      

      Information
        of the Recipient of Share for Transfer

      

        
          	
                  The
                    Transferee

                	
                  Amount
                    of Share to Be Transferred

                
	 	 
	
                  CHINA
                    SAFETECH HOLDINGS LIMITED

                	
                  10,000

                

        

         

        
          
            
            

          

          
            13

            
              

            

          

          
            
            

          

        

      

       

      Exhibit
        III

       

      Information
        of HiEasy

      

        
          	
                  Name

                	
                  :

                	
                  HiEasy
                    Electronic Technology Development Co., Ltd.

                
	 	 	 
	
                  Legal
                    Address

                	
                  :

                	
                  No.
                    618, Luoyu Road, Guanshan Street, Hongshan 

                  District,
                    Wuhan, PRC

                
	 	 	 
	
                  Enterprise
                    Type

                	
                  :

                	
                  Wholly
                    Foreign Owned Enterprise

                
	 	 	 
	
                  Date
                    of Establishment

                	
                  :

                	
                  January
                    16, 2001

                
	 	 	 
	
                  Business
                    License No.

                	:	
                   

                
	 	 	 
	
                  Operational
                    Term

                	
                  :

                	
                  10
                    years

                
	 	 	 
	
                  Total
                    Investment

                	
                  :

                	
                  RMB10
                    million Yuan

                
	 	 	 
	
                  Registered
                    Capital

                	
                  :

                	
                  RMB10
                    million Yuan

                
	 	 	 
	
                  Investor

                	
                  :

                	
                  LINK
                    BILLION INVESTMENT LIMITED

                
	 	 	 
	
                  Legal
                    Representative

                	
                  :

                	
                  CHEN
                    Yong

                
	 	 	 
	
                  Directors

                	
                  :

                	
                  CHEN
                    Yong, HU Zhixiong, JIN Weizheng 

                
	 	 	 
	
                  Business
                    Scope

                	
                  :

                	
                  To
                    research and develop, manufacture, and distribute computer equipments,
                    electronic products; system integration of electronic products;
                    maintenance service for cultural office equipments and
                    computers.

                

        

      

      

      
        
          
          

        

        
          14

          
            

          

        

        
          
          

        

      

       

      Exhibit
        IV

       

      Representations
        and Warranties

      

        
          	
                  1.

                	
                  Link
                    Billion and HiEasy are companies legally established and validly
                    existing
                    under the laws of their respective places of
                    establishment.

                

        

        

        
          	
                  2.

                	
                  Link
                    Billion and HiEasy have been authorized and qualified to conduct
                    business
                    within the jurisdiction of their existing
                    businesses.

                

        

        

        
          	
                  3.

                	
                  The
                    operation businesses and their operation of Link Billion and
                    HiEasy have
                    been materially in compliance with the relevant
                    laws.

                

        

        

        
          	
                  4.

                	
                  Accounts
                    of Link Billion and HiEasy have been properly recorded in accordance
                    with
                    the account categories and the generally accepted account principles,
                    standards and laws of their establishment place, which have truly
                    represented and reflected the status of Link Billion and HiEasy
                    respectively for the fiscal year or the period ending on the
                    date of the
                    relevant book account.

                

        

      

      

        
          	
                  5.

                	
                  (a)

                	
                  Exhibit
                    I has listed all the directors and company secretaries of Link
                    Billion
                    before the completion of the transaction as of the Closing
                    Date.

                

        

        

        
          	 	
                  (b)

                	
                  Exhibit
                    III has listed the legal representative and all the directors
                    of HiEasy
                    before the completion of the transaction as of the Closing
                    Date.

                

        

        

        
          	 	
                  (c)

                	
                  There
                    has not been any shareholder resolution adopted to liquidate
                    Link Billion
                    and HiEasy before the completion of the transaction as of the
                    Closing
                    Date.

                

        

      

      

        
          	
                  6.

                	
                  The
                    register of shareholders of Link Billion has truly and correctly
                    recorded
                    the date and the changes of shareholders from the establishment
                    to the
                    completion date and before the completion of the
                    transition.

                

        

         

        
          	
                  7.

                	
                  Any
                    share warrant has not been sent or given to any person in respect
                    of any
                    share of Link Billion and HiEasy by the Transferor, Link Billion
                    and
                    HiEasy.

                

        

      

      
        

          
            	
                    8.

                  	
                    (a)

                  	
                    Link
                      Billion has not conducted any business activities other than
                      holding
                      shares of HiEasy.

                  

          

          

          
            	 	
                    (b)

                  	
                    Link
                      Billion has HiEasy as its only one subsidiary company. HiEasy
                      has no
                      subsidiary companies.

                  

          

           

        

      

      
        
          	
                  9

                	
                  Articles
                    of associations of Link Billion and duplicate of articles of
                    associations
                    of HiEasy have been delivered to Transferee, which shall be true
                    and
                    complete. 

                

        

         

        
          
            
            

          

          
            15

            
              

            

          

          
            
            

          

        

         

        
          	
                  10

                	
                  If
                    any thing conflicts or is inconsistent with foregoing warrants
                    before the
                    closing date, the Transferee agrees to immediately notify the
                    Transferor
                    in writing.

                

        

        

        
          	
                  11.

                	
                  Link
                    Billion has fully paid the issued shares. HiEasy has fully contributed
                    the
                    registered capital.

                

        

        

        
          	
                  12.

                	
                  The
                    Transferor shall be the solely and legal beneficial owner of
                    the shares
                    for transfer. The shares for transfer shall not be imposed of
                    any
                    mortgage, lien or property
                    encumbrances.

                

        

        

        
          	
                  13.

                	
                  Link
                    Billion owns 100% of shares of HiEasy. Link Billion shall be
                    the solely
                    and legal beneficial owner of the shares. The shares shall not
                    be imposed
                    of any mortgage, lien or property
                    encumbrances.

                

        

        

        
          	
                  14.

                	
                  The
                    Transferor shall have the authority to execute the Agreement
                    and can sell
                    any shares for transfer without any third party’s permission. The
                    Agreement shall be legally binding on the
                    Transferor.

                

        

        

        
          	
                  15.

                	
                  Except
                    for the ongoing litigations disclosed to the Transferee, Link
                    Billion and
                    HiEasy have not currently been involved in any material litigation
                    or a
                    party to any litigation and/or any unexecuted verdict, and have
                    not been
                    subject to any ongoing material injunction or
                    order.

                

        

        

        
          	
                  16.

                	
                  Up
                    to the Closing Date, all or part of the assets or businesses
                    of Link
                    Billion and HiEasy have not been entrusted to take over by any
                    person, and
                    there are not any orders or applications before court or adopted
                    solutions
                    to close down Link Billion and
                    HiEasy.

                

        

        

        
          	
                  17.

                	
                  Except
                    for debts (including the outstanding tax fees)disclosed by the
                    Transferor,
                    the Agreement or accounts of Link Billion and HiEasy, Link Billion
                    and
                    HiEasy shall not have any other debts and/or outstanding tax
                    fees as of
                    the Closing Date, which shall be assumed by the Transferor (if
                    any).

                

        

        

        
          	
                  18.

                	
                  Except
                    for the information disclosed by the Transferor, the Agreement
                    or accounts
                    of Link Billion and HiEasy, Link Billion and HiEasy shall not
                    have other
                    unperformed material contracts.

                

        

        

          
            	
                    19.

                  	
                    The
                      net assets in 2006 audited by the US auditor and verified by
                      a third party
                      appraiser shall be more than RMB 10,000,000, and the net profits
                      shall be
                      no less than RMB 5,000,000.

                  

          

        

        

        
          	
                  20.

                	
                  The
                    shareholders and the meeting of board of directors according
                    to the
                    Company Law, have reached a resolution to approve the share transfer
                    for
                    the issue of the share transfer under the
                    Agreement.

                

        

        

        
          	
                  21.

                	
                  The
                    existing and outstanding legal liabilities of Link Billion and
                    HiEasy
                    before the Closing Date such as labor compensation disputes,
                    bad debts and
                    losses of bad assets, debt disputes and/or risks of contingent
                    debts shall
                    be assumed by the Transferor. For the losses which can be calculated
                    into
                    money, if the net assets of the target company are less than
                    RMB10,000,000, the Transferor shall be obliged to make it up
                    to
                    RMB10,000,000.

                

        

         

        
          
            
            

          

          
            16

            
              

            

          

          
            
            

          

        

         

        
          	
                  22.

                	
                  The
                    Transferor shall be fully responsible for all civil and criminal
                    liabilities of Link Billion and HiEasy before and on the Closing
                    Date.

                

        

        

        
          	
                  23.

                	
                  The
                    Transferor shall not manipulate any adverse change to the operations
                    of
                    Link Billion and HiEasy on purpose (excluding the normal operation
                    and
                    force majeure) as of execution of this Agreement. The Transferor
                    shall
                    immediately inform the Transferee if there is any thing causing
                    the
                    material change to the operation of Link Billion and
                    HiEasy.

                

        

        

          
            	
                    24.

                  	
                    The
                      Transferor undertakes to continue to be the CEO of Link Billion
                      and HiEasy
                      for another five years and maintain the stability of Link Billion
                      and
                      HiEasy.

                  

          

        

        

        
          	
                  25.

                	
                  The
                    Transferor undertakes that the Transferor and its direct relatives
                    (parents, spouse or children) shall not engage in security and
                    protection
                    industry or operation in similar industry in five
                    years.

                

        

         

        
          
            
            

          

          
            17

            
              

            

          

          
            
            

          

           

        

      

      Exhibit
        V

       

      Provisions
        for the Closing

      

        
          	
                  1.

                	
                  Liabilities
                    of the Transferee

                

        

        

        
          	 	
                  (i)

                	
                  The
                    Transferee shall pay the Balance of the total price to the Transferor
                    according to Article 3.2.1 (2) of the Agreement and submit the
                    proof
                    document of payment to the
                    Transferor.

                

        

        

        
          	 	
                  (ii)

                	
                  The
                    Transferee shall provide a consent letter executed by two persons
                    to be
                    the directors of Link Billion and a consent letter executed by
                    two persons
                    to be the directors of HiEasy.

                

        

        

        
          	
                  2.

                	
                  Liabilities
                    of the Transferor

                

          	 	 

          	 	After the transferor confirms that its bank
                  account under
                  Article 3.2.2 of the Agreement has received all the payment by
                  the
                  Transferee under Article 3.2.1, the Transferor shall deliver and
                  arrange
                  the following to the Transferee:

        

        

        
          	 	
                  (i)

                	
                  The
                    transfer documents (subject to official execution by the registered
                    shareholders of Link Billion) and instruments for sale along
                    with shares
                    in connection with the Shares for Transfer;

                

        

        

        
          	 	
                  (ii)

                	
                  The
                    original copy of resignation executed by two current directors
                    of HiEasy
                    with stating that there are not any claims against
                    HiEasy;

                

        

        

        
          	 	
                  (iii)

                	
                  All
                    account books, registration certificates, business registration
                    certificates, articles of association, meeting records, statutory
                    books,
                    application forms, seals, offset printing, steel seals and all
                    documents
                    relevant to the company businesses (if any) of Link Billion controlled
                    by
                    the Transferor;

                

        

         

        
          
            
            

          

          
            18

            
              

            

          

          
            
            

          

        

         

        
          	 	
                  (iv)

                	
                  The
                    Transferor shall incentive Link Billion and HiEasy to hold a
                    board meeting
                    to approve (1) the transfer of the Shares for Sale relevant to
                    Link
                    Billion, and registration after payment of appropriate stamp
                    taxes; (2)
                    appointment of the persons nominated by the Transferee according
                    to law
                    and who are qualified to be directors of company under laws as
                    the two new
                    directors of Link Billion and the two new directors of HiEasy
                    under the
                    written instruction of the Transferee; (3) after the completion
                    of the
                    foregoing (2), acceptance of resignation of the two directors
                    of the
                    HiEasy under the above (ii); and (4) suspension and change of
                    the
                    operation of the bank accounts of Link Billion and HiEasy, and
                    appointment
                    of the person nominated by the Transferee as the authorized person
                    to
                    execute the bank accounts of Link Billion and HiEasy under the
                    written
                    instruction of the Transferee at least before two business
                    days;

                

        

        

        
          	 	
                  (v)

                	
                  The
                    original copy of records of the board meeting held for the issue
                    of the
                    above (iv) executed and confirmed by the directors of Link Billion
                    and
                    HiEasy;

                

        

        

        
          	 	
                  (vi)

                	
                  The
                    documents controlled by HiEasy (refer to the list of Exhibit
                    C);
                    and

                

        

        

        
          	 	
                  (vii)

                	
                  Legal
                    opinion reports issued by Hong Kong law firms and China law
                    firms.

                

        

        

        
          	
                  3.

                	
                  The
                    Transferor and the Transferee shall make obvious marks on the
                    seals and
                    enter into the delivery memorandum to present the differences
                    between the
                    new and the old.

                

        

      

      

      
        
          
          

        

        
          19Unassociated Document

    EXHIBIT
      10.01 

    CREDIT
      AGREEMENT

     

    

    This
      CREDIT AGREEMENT (as the same may be amended, restated, supplemented or
      otherwise modified from time to time, this "Agreement")
      is
      made as of May 16, 2007, by and between SAN HOLDINGS, INC., a Colorado
      corporation (the "Company"),
      and
      SUN CAPITAL PARTNERS II, LP, as administrative agent (in such capacity,
“Administrative
      Agent”
or
      “Agent”)
      and as
      a lender (in such capacity, the “Lender”).
      

    

    WHEREAS,
      pursuant to the terms of this Agreement, Lender has agreed to extend loans
      to
      the Company.

     

    In
      consideration of the mutual covenants contained herein and other good and
      valuable consideration, the receipt and sufficiency of which are hereby
      acknowledged, the parties hereby agree as follows:

     

    Section
      1. The
      Loans; Authorization and Closing.

     

    1.A.
      The
      Transaction.
      

     

    All
      loans
      and advances from the Lender to the Company under this Agreement (the
      "Loans")
      shall
      be made against and evidenced by the Company’s promissory note or notes payable
      to the order of the Lender in the aggregate principal amount of $10,000,000.00
      (the “Maximum
      Credit”),
      such
      notes to be in the form of Exhibit
      A
      attached
      hereto (collectively, the "Note").
      

    

    On
      the
      Closing Date, the Lender shall advance to the Company a Loan in the amount
      set
      forth in the Initial Notice of Borrowing executed and delivered by the Company
      to the Administrative Agent on the date of this Agreement. 

    

    Lender
      may, in its sole discretion, provide additional Loans to the Company from time
      to time up to the Maximum Credit. The Company shall not request any Loan which,
      when taken together with the Loans then outstanding, would exceed the Maximum
      Credit; provided
      that the
      Company may re-borrow pursuant to the terms set forth herein any amount that
      has
      been repaid. Each request by the Company for, and the making by the Lender
      of,
      any Loan shall constitute a reaffirmation by the Company of the terms hereof
      (including, without limitation, a re-making by the Company of the
      representations and warranties contained herein). At the time of any additional
      Loan made by the Lender to the Company, the Lender shall be entitled to receive,
      and the Company shall be obligated to deliver, representations and warranties
      in
      addition to those contained herein and all other information and documentation
      as Lender may reasonably request. 

    

    The
      Company agrees and acknowledges that the Lender shall have no obligation to
      make
      additional Loans to the Company. 

    

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    The
      Lender agrees that notwithstanding the fact that the Note is in the principal
      amount of the Maximum Credit, it shall evidence only the actual unpaid principal
      balance of Loans made under this Agreement. All Loans made against the Note
      and
      the status of all amounts evidenced by the Note shall be recorded by the Lender
      on its books and records or, at its option in any instance, endorsed on a
      schedule to the Note and the unpaid principal balance and status so recorded
      or
      endorsed by the Lender shall be prima
      facie
      evidence
      in any court or other proceeding brought to enforce the Note of the principal
      amount remaining unpaid thereon and the status of the Loans evidenced thereby,
      absent manifest error; provided that
      the
      failure of the Lender to record any of the foregoing shall not limit or
      otherwise affect the obligation of the Company to repay the principal amount
      of
      the Note together with accrued interest thereon. 
      The
      Lender agrees that if it transfers or assigns the Note, the Lender will stamp
      thereon a statement of the actual principal amount evidenced thereby at the
      time
      of transfer. The Company agrees that in any action or proceeding instituted
      to
      collect or enforce collection of the Note, the amount shown as owing to the
      Lender on its records shall be prima
      facie evidence
      of the unpaid balance of principal and interest on the Note, absent manifest
      error. 

    

    The
      Company hereby waives diligence, presentment, protest and demand and notice
      of
      protest and demand, dishonor and nonpayment of the Loans or the Note, and
      expressly agrees that the Loans and the Note, or any payment hereunder or
      thereunder, may be extended from time to time and that the Lender may accept
      security for the Loans and the Note or release security for the Loans and the
      Note, all without in any way affecting the liability of the Company hereunder
      and thereunder.

     

    1.B. Interest.
      Interest shall accrue on the Loans outstanding at a rate of fifteen percent
      (15.0%) per annum. Interest on the Loans shall be payable in kind (i) monthly
      in
      arrears on the first Business Day of each month, commencing with the month
      immediately following the Closing Date, (ii) upon repayment of the Loans in
      full
      and (iii) upon termination of this Agreement, whether by acceleration or
      otherwise. Interest paid in kind shall be added to the outstanding principal
      balance of the Note as of any of the foregoing payments dates and thereafter
      shall be treated as outstanding principal under the Note.

    

    1.C. Reserved.
      

    

    1.D. Procedure
      for Borrowing and Notice of Borrowing.
      

    

    (i)
      Each
      request for a Loan shall be made by notice, given not later than noon (New
      York
      time) one (1) Business Date prior to the date of the proposed Loan, by the
      Company to the Administrative Agent. Each such notice of a requested Loan shall
      be by telephone, confirmed immediately in writing (by facsimile or otherwise
      as
      permitted hereunder), in substantially the form of Exhibit
      B
      attached
      hereto (a “Notice
      of Borrowing”),
      specifying therein the requested (a) date of such borrowing, which in all events
      shall be a Business Day and (b) aggregate principal amount of such Loan,
      and containing such representations, warranties and information as the
      Administrative Agent shall require, including, without limitation, the following
      representations by the Company:

    

    (I) all
      representations and warranties contained in this Agreement and the other Loan
      Documents shall be true and correct in all material respects on and as of the
      date of such Loan as if then made;

    

    
      
         

      

      
        -2-

        
          

        

      

      
         

      

    

    (II) no
      Event
      of Default shall have occurred and be continuing or would result from the making
      of the requested Loan as of the date of such request; and

    

    (III) after
      giving effect to such Loan, the aggregate amount of outstanding Loans and shall
      not exceed the Maximum Credit.

    

    (ii) The
      proceeds of all Loans made pursuant to this Agreement are to be funded by the
      Administrative Agent by wire transfer to the account designated by the Company
      below (the “Disbursement
      Account”):

    

    
      	
              Bank:

            	
              Wells
                Fargo Bank, N.A.

            
	
              Bank
                Address:

            	
              MAC
                C7300-081

              Wells
                Fargo Center, 8th Floor

              1700
                Lincoln Street

              Denver,
                Colorado 80203

            
	
              ABA
                No.:

            	
              102-000-076

            
	
              Account
                No.:

            	
              2758004514

            
	
              Acct.
                Name:

            	
              San
                Holdings, Inc.

            
	
              Reference:

            	
              Sun
                Loan

            

    

     

    or
      to
      such other account as the Company may from time to time specify to the
      Administrative Agent by prior written notice, with the consent of the
      Administrative Agent to such other account.

    

    (iii)
       The
      proceeds of any Loan shall be used by the Company solely to lend the proceeds
      thereof to Sanz Inc., a Colorado corporation (“Borrower”),
      a
      wholly-owned subsidiary of the Company, for the Borrower’s working capital
      purposes, except for (x) the proceeds of the initial Loan, a portion of which
      shall be used by the Company to repay in full all obligations it owes to Harris
      N.A. and (y) a portion of the proceeds of any Loan may be used by the Company
      to
      pay its reasonable out-of-pocket operating expenses incurred in its ordinary
      course of business. 

    

       1.E. Payments
      of Principal and other Amounts.
      

    

    The
      Company shall pay to the Administrative Agent, for the benefit of the Lender,
      the principal amount of all outstanding Loans, together with any accrued
      interest and unpaid interest thereon, ON DEMAND, but in no case later May 16,
      2012. Any demand for payment shall be made in writing to the Company, except
      for
      (x) any demand in connection with an Event of Default under 1.F.(ii), which
      demand shall occur automatically without any writing or other type of notice
      upon the occurrence of any Event of Default set forth in Section 1.F.(ii) or
      (y)
      any demand on May 16, 2012, which demand shall occur automatically without
      any
      writing or other type of notice. 

    

    The
      Company may, at any time and from time to time without premium or penalty,
      pay
      all or any portion of the outstanding principal amount of, or interest on,
      the
      Loans. 

    

    
      
         

      

      
        -3-

        
          

        

      

      
         

      

    

    In
      the
      absence of an Event of Default, payments in connection with the Loans shall
      be
      applied (i) first, to the payment of accrued interest on the Loans until all
      such interest is paid, (ii) second, to the repayment of the principal amount
      of
      the Loans outstanding and (iii) third, to the payment of Fees and Expenses
      (as
      defined in Section 3.B. of this Agreement).

    

    During
      the existence of an Event of Default, payments in connection with the Loans
      shall be applied (i) first, to the payment of Fees and Expenses until such
      Fees
      and Expenses are paid in full, (ii) second, to the payment of accrued interest
      on the Loans until all such interest is paid, and (iii) third, to the repayment
      of the principal amount of the Loans outstanding.

    

    1.F. Events
      of Default.
      For
      purposes of this Agreement, an “Event of Default” shall be deemed to have
      occurred if: 

    

    (i) the
      Company fails to pay when due and payable (whether at maturity or otherwise)
      the
      full amount of interest then accrued, due and payable on the Loans, or the
      full
      amount of any principal payment on the Loans, or the full amount of any Fees
      and
      Expenses, and such failure to pay is not cured within five (5) business days
      after the occurrence thereof; 

    

    (ii) the
      Company makes an assignment for the benefit of creditors or admits in writing
      its inability to pay its debts generally as they become due; or an order,
      judgment or decree is entered adjudicating the Company bankrupt or insolvent;
      or
      any order for relief with respect to the Company is entered under the Federal
      Bankruptcy Code; or the Company petitions or applies to any tribunal for the
      appointment of a custodian, trustee, receiver or liquidator of the Company,
      or
      of any substantial part of the assets of the Company, or commences any
      proceeding relating to the Company under any bankruptcy reorganization,
      arrangement, insolvency, readjustment of debt, dissolution or liquidation law
      of
      any jurisdiction; or any such petition or application is filed, or any such
      proceeding is commenced, against the Company and either (A) the Company by
      any
      act indicates its approval thereof, consent thereto or acquiescence therein
      or
      (B) such petition, application or proceeding is not dismissed within 60 days;
      

    

    (iii) reserved;

    

    (iv) there
      is
      a default in any agreement with respect to indebtedness of $100,000 or more
      to
      which the Company is a party and such default (i) occurs at the final maturity
      of the obligations thereunder, or (ii) results in a right by the other party
      thereto, irrespective of whether exercised, to accelerate the maturity of such
      person’s obligations thereunder, to terminate such agreement, or to refuse to
      renew such agreement pursuant to an automatic renewal right therein,
provided
      that, if
      the Senior Lender waives any “event of default” under the Senior Loan Agreement,
      such waiver shall be effective for purposes of this clause (iv); 

    

    (iv) the
      Company is sold to a third party or group of third parties pursuant to which
      such party or parties acquire (i) capital stock of the Company possessing
      the voting power to elect a majority of the board of directors of the Company
      (whether by merger, consolidation, sale, or transfer of the Company's capital
      stock) or (ii) all or substantially all the Company's assets determined on
      a consolidated basis; 

    

    
      
         

      

      
        -4-

        
          

        

      

      
         

      

    

    (v)
       any
      of
      the following shall have occurred: (a) a material adverse change in the business
      prospects, operations, results of operations, assets, liabilities or condition
      (financial or otherwise) of the Company, (b) a material impairment of the
      Company’s ability to perform its obligations under this Agreement or the Note,
      or of the Lender's ability to enforce the Company's obligations under this
      Agreement or the Note;

    

    (vi) any
      representation or warranty made by the Company in any Loan Document is untrue
      or
      incorrect in any material respect as of the date when made or deemed made;
      or

    

    (vii) the
      Company shall fail to perform, keep or observe any covenant, agreement,
      provision, term or condition contained in any Loan Documents and such failure
      shall continue after the expiration of any applicable grace period
      therefor.

    

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

    

    1.G. Consequences
      of Events of Default.
      

    

    If
      any
      Event of Default has occurred and is continuing, the interest rate on the Loans
      and any other amounts owing under any of the Loan Documents shall increase
      immediately by an increment of two percent (2.0%) per annum. Any increase of
      the
      interest rate resulting from the operation of this subparagraph shall terminate
      as of the close of business on the date on which no Events of Default exist
      (subject to subsequent increases pursuant to this subparagraph).

    

    If
      an
      Event of Default under Section 1.F.(ii) has occurred and is continuing, the
      aggregate principal amount of the Loans (together with all accrued interest
      and
      unpaid interest thereon and all other amounts due and payable with respect
      thereto, including, without limitation, the Fees and Expenses) shall become
      immediately due and payable without any action on the part of the Administrative
      Agent or the Lender, and the Company shall immediately pay to the Administrative
      Agent all amounts due and payable with respect to the Loans, all accrued
      interest and unpaid interest thereon and all other amounts due and payable
      with
      respect thereto, including, without limitation, the Fees and
      Expenses.

    

    If
      any
      Event of Default other than one arising under 1.F.(ii) has occurred and is
      continuing, the aggregate principal amount of the Loans (together with all
      accrued interest and unpaid interest thereon and all other amounts due and
      payable with respect thereto, including, without limitation, the Fees and
      Expenses) shall become immediately due and payable at the option of the
      Administrative Agent or the Lender, and if such option is elected, the Company
      shall immediately pay to the Administrative Agent all amounts due and payable
      with respect to the Loans, all accrued interest and unpaid interest thereon
      and
      all other amounts due and payable with respect thereto, including, without
      limitation, the Fees and Expenses.

    

    
      
         

      

      
        -5-

        
          

        

      

      
         

      

    

    The
      Administrative Agent and the Lender shall also have any other rights which
      any
      such person may have been afforded under any contract or agreement at any time
      and any other rights which any such person may have pursuant to applicable
      law.

    

    1.H. Conditions
      to Lender's Obligations.
      The
      obligations of the Lender under this Agreement are, at the option of the Lender,
      subject to satisfaction of the following conditions precedent on or before
      the
      Closing Date:

     

    (i) the
      Company shall duly authorize, execute and deliver to the Administrative Agent
      this Agreement, the Note and such other documents, agreements, certificates
      and/or assignments as the Administrative Agent may request;

    

    (ii)
       the
      Company shall deliver to the Administrative Agent such other documents relating
      to the transactions contemplated by this Agreement as the Administrative Agent
      or its counsel may request; and,

    

    (iii) the
      representations and warranties of the Company contained herein shall be true
      in
      correct in all material respects on the Closing Date.

    

    1.I. The
      Closing.
      The
      closing of the transactions contemplated by this Agreement (the "Closing")
      shall
      take place at the offices of Kirkland & Ellis, 200 East Randolph Drive,
      Chicago, Illinois at 1:00 p.m. (Chicago time) on the date hereof, or at such
      other place or on such other date as may be mutually agreeable to the Company
      and the Administrative Agent. 

     

    Section
      2. Representations
      and Warranties of the Company.
      As a
      material inducement to the Administrative Agent and the Lender to enter into
      this Agreement and to make the Loans hereunder, the Company hereby represents
      and warrants that:

     

    2.A. Organization
      and Corporate Power.
      The
      Company is a corporation company duly organized, validly existing and in good
      standing under the laws of the State of Colorado and is qualified to do business
      in every jurisdiction in which its ownership of property or conduct of business
      requires it to qualify. The Company has all requisite corporate power and
      authority and all material licenses, permits and authorizations necessary to
      own
      and operate its properties, to carry on its businesses as now conducted and
      presently proposed to be conducted and to carry out the transactions
      contemplated by this Agreement.

     

    2.B. Authorization;
      No Breach.
      The
      execution, delivery and performance of this Agreement and all other agreements
      and instruments (including, without limitation, the Note) contemplated hereby
      to
      which the Company is a party (the "Loan
      Documents")
      have
      been duly authorized by the Company. Each of the Loan Documents constitutes
      a
      valid and binding obligation of the Company, enforceable in accordance with
      its
      terms. The execution and delivery by the Company of the Loan Documents, the
      issuance of the Note hereunder, and the fulfillment of and compliance with
      the
      respective terms hereof and thereof by the Company, do not and shall not
      (i) conflict with or result in a breach of the terms, conditions or
      provisions of, (ii) constitute a default under, (iii) result in the
      creation of any lien, security interest charge or encumbrance upon the Company’s
      securities or assets pursuant to, (iv) give any third party the right to
      modify, terminate or accelerate any obligation under, (v) result in a
      violation of, or (vi) require any authorization, consent, approval, exemption
      or
      other action by or notice to any court or administrative or governmental body
      pursuant to, the Loan Documents, or any material law, statute, rule or
      regulation to which the Company is subject, or any material agreement,
      instrument, order, judgment or decree to which the Company is subject, except
      for those that have already been obtained as of the date hereof. 

     

    
      
         

      

      
        -6-

        
          

        

      

      
         

      

    

    2.C. Litigation.
      There
      is
      no pending or, to the Company's knowledge, threatened action or proceeding
      affecting the Company before any court, governmental agency or arbitrator,
      which
      may materially adversely affect the Company’s financial condition or operations
      or which purports to affect the legality, validity, or enforceability of this
      Agreement, the Note or any of the other Loan Documents.

     

    2.D. Reserved.
      

     

    2.E. No
      Encumbrances.
      The
      Company has good and indefeasible title to its assets, free and clear of all
      liens, security interests or other types of encumbrances or security
      arrangements.

     

    2.F. Insurance.
      The
      Company maintains the insurance required under the Senior Loan Agreement as
      in
      effect on the Closing Date.

     

    Section
      3. Miscellaneous.

     

    3.A. Remedies.
      The
      Administrative Agent and the Lender shall have all rights and remedies set
      forth
      in this Agreement and all rights and remedies which such person has been granted
      at any time under any other agreement or contract and all of the rights which
      it
      has under any law. The Administrative Agent and the Lender shall be entitled
      to
      enforce any rights under any provision of this Agreement specifically (without
      posting a bond or other security) to recover damages by reason of any breach
      of
      any provision of this Agreement and to exercise all other rights granted by
      law.

     

    3.B.Fees
      and Expenses.
      The
      Company agrees to pay to the Administrative Agent on demand each of the
      following (collectively, the “Fees
      and Expenses”):
      all
      out-of-pocket costs and expenses (including, without limitation, attorneys
      fees
      and expenses) of the Administrative Agent and the Lender in connection with
      the
      preparation, execution, delivery and administration of this Agreement, the
      other
      Loan Documents and all other documents
      provided for herein or delivered or to be delivered hereunder or in connection
      herewith (including any proposed or actual amendment, supplement or waiver
      to
      any Loan Document), and all out-of-pocket costs and expenses (including, without
      limitation, attorneys fees and expenses) incurred by the Administrative Agent
      and the Lender after an Event of Default in connection with the collection
      of
      the Loans and/or the enforcement of this Agreement, the other Loan Documents
      or
      any such other documents. In addition, the Company agrees to pay, and to save
      the Administrative Agent and the Lender harmless from all liability for, any
      fees of the Company's auditors in connection with any exercise by the
      Administrative Agent and the Lender of their rights under this Agreement and
      any
      of the other Loan Documents. The obligations of the Company provided for in
      this
      Section shall
      survive
      repayment of the Loans and the termination of this Agreement.

     

    
      
         

      

      
        -7-

        
          

        

      

      
         

      

    

    3.C.Place
      of Payments with Respect to the Note.
      All
      payments to be made to the Administrative Agent, for the benefit of the Lender,
      with respect to the Note shall be delivered to the Administrative Agent via
      wire
      transfer to the following account of the Administrative Agent at:

    

    
      	
              Bank:

            	
              Wachovia
                Bank

            
	
              Bank
                Address:

            	
              Boca
                Raton, Florida

            
	
              ABA
                No.:

            	
              063-000-021

            
	
              Account
                No.:

            	
              2000029360240

            
	
              Reference:

            	
              Sun
                Capital Partners II, LP loan to SAN Holdings,
                Inc.

            

    

     

    or
      to
      such other person or account as the Administrative Agent may from time to time
      specify to the Company by prior written notice. All such payments shall be
      made
      in the lawful money of the United States of America in immediately available
      funds.

    

    3.D.Amendments.
      The
      provisions of this Agreement may be amended and waived only with the prior
      written consent of the Company, the Adminstrative Agent and the
      Lender.

    

    3.E. Survival
      of Representations and Warranties.
      All
      representations and warranties contained herein or made in writing by any party
      in connection herewith shall survive the execution and delivery of this
      Agreement and the consummation of the transactions contemplated hereby,
      regardless of any investigation made by the Administrative Agent, the Lender
      or
      on such person’s behalf.

     

    3.F. Successors
      and Assigns.
      This
      Agreement and any other document referred to herein shall be binding upon and
      inure to the benefit of and be enforceable by the Administrative Agent, the
      Lender, the Company and their respective successors and assigns, except that
      the
      Company may not assign its rights under this Agreement and any other Loan
      Document without the prior written consent of the Administrative Agent. The
      Lender or the Administrative Agent may, without the Company’s consent, assign
      its rights and delegate its obligations under this Agreement and any other
      Loan
      Document and further may assign, or sell participations in, all or any part
      of
      the Loans or any other interest herein to another financial institution or
      other
      person, in which event, the assignee or participant shall have, to the extent
      of
      such assignment or participation, the same rights and benefits as it would
      have
      if it were Lender, except as otherwise provided by the terms of such assignment
      or participation. 

     

    3.G. Severability.
      Whenever possible, each provision of this Agreement shall be interpreted in
      such
      manner as to be effective and valid under applicable law, but if any provision
      of this Agreement is held to be prohibited by or invalid under applicable law,
      such provision shall be ineffective only to the extent of such prohibition
      or
      invalidity, without invalidating the remainder of this Agreement.

     

    3.H. Counterparts;
      Facsimile Signature.
      This
      Agreement may be executed in two or more counterparts, any one of which need
      not
      contain the signatures of more than one party, but all such counterparts taken
      together shall constitute one and the same Agreement. This Agreement may be
      executed by facsimile signature.

     

    
      
         

      

      
        -8-

        
          

        

      

      
         

      

    

    3.I. Descriptive
      Headings; Interpretation.
      The
      descriptive headings of this Agreement are inserted for convenience only and
      do
      not constitute a part of this Agreement. The use of the word "including" in
      this
      Agreement shall be by way of example rather than by limitation.

     

    3.J. Governing
      Law.
      All
      questions concerning the construction, validity, enforcement and interpretation
      of this Agreement and the exhibits and schedules hereto shall be governed by,
      and construed in accordance with, the laws of the State of Delaware, without
      giving effect to any choice of law or conflict of law rules or provisions
      (whether of the State of Delaware or any other jurisdiction) that would cause
      the application of the laws of any jurisdiction other than the State of
      Delaware.

     

    3.K. Notices.
      Any
      notice, request, instruction or other document to be given hereunder by a party
      hereto shall be in writing and shall be deemed to have been given, (a) when
      received if given in person, (b) on the date of transmission if sent by
      telex, telecopy or other wire transmission (with answer back confirmation of
      such transmission), (c) upon delivery, if delivered by a nationally known
      commercial courier service providing next day delivery service (such as Federal
      Express), or (d) upon delivery, or refusal of delivery, if deposited in the
      U.S.
      mail, certified or registered mail, return receipt requested, postage
      prepaid:

    
       

      
        	 	To the Company: 	SAN Holdings, Inc.

        	 	 	9800 Pyramid Court, Suite 130

        	 	 	Englewood, Colorado 80112

        	 	 	Attention: Chief
                Executive Officer and Controller

        	 	 	Facsimile: (303)
                814-0693

         

      

    

    
      	 	
              With
                a copies to: 

            	
              Sun
                Capital Partners, Inc.

            

      	 	 	5200 Town Center Circle, Suite
              407

      	 	 	Boca Raton, Florida 33486

      	 	 	Attention: C.
              Deryl Couch and Brian Urbanek

      	 	 	Facsimile: (561)
              394-0540

      	 	 	 

      	 	 	                 
              and

    

     

    
      	 	 	
              Kirkland
                & Ellis LLP

            

    

    
      	 	 	
              200
                East Randolph Drive

            

    

    
      	 	 	
              Chicago,
                Illinois 60601

            

    

    
      	 	 	
              Attention:
                Douglas C. Gessner, P.C. and James C.
                Anderson

            

    

    
      	 	 	
              Facsimile:
                (312) 861-2200

            

    

     

    
      
         

      

      
        -9-

        
          

        

      

      
         

      

    

     

    To
      Administrative 

    Agent
      or
      the 

    
      	 	
              Lender,
                to:

            	
              Sun
                Capital Partners II, LP

            

    

    c/o
      Sun
      Capital Partners, Inc.

    5200
      Town
      Center Circle, Suite 407

    Boca
      Raton, Florida 33486

    Attention: C.
      Deryl
      Couch and Brian Urbanek

    Facsimile: (561)
      394-0540

    

    
      	 	
              With
                a copies to: 

            	
              Kirkland
                & Ellis LLP

            

    

    
      	 	 	
              200
                East Randolph Drive

            

    

    
      	 	 	
              Chicago,
                Illinois 60601

            

    

    
      	 	 	
              Attention:
                Douglas C. Gessner, P.C. and James C.
                Anderson

            

    

    Facsimile:
      (312) 861-2200 

    

    or
      to
      such other individual or address as a party hereto may designate for itself
      by
      notice given as herein provided.

    

    3.L. Usury
      Laws.
      It is
      the intention of the Company and the Lender to conform strictly to all
      applicable usury laws now or hereafter in force, and any interest payable under
      this Agreement shall be subject to reduction to the amount not in excess of
      the
      maximum legal amount allowed under the applicable usury laws as now or hereafter
      construed by the courts having jurisdiction over such matters. If the maturity
      of the Loans is accelerated by reason of an Event of Default or otherwise,
      then
      earned interest may never include more than the maximum amount permitted by
      law,
      computed from the date hereof until payment, and any interest in excess of
      the
      maximum amount permitted by law shall be canceled automatically and, if
      theretofore paid, shall at the option of the Lender either be rebated to the
      Company or credited on the principal amount of the Loans, or if the Loans have
      been paid, then the excess shall be rebated to the Company. The aggregate of
      all
      interest (whether designated as interest, service charges, points or otherwise)
      contracted for, chargeable, or receivable under this Agreement shall under
      no
      circumstances exceed the maximum legal rate upon the unpaid principal balance
      of
      the Loans remaining unpaid from time to time. If such interest does exceed
      the
      maximum legal rate, it shall be deemed a mistake and such excess shall be
      canceled automatically and, if theretofore paid, rebated to the Company or
      credited on the principal amount of the Loans, or if the Loans have been repaid,
      then such excess shall be rebated to the Company.

    

    3.M. Reserved.
      

    

    Section
      4. Definitions.

     

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

    

    “Business
      Day”
means
      any day other than a Saturday, a Sunday or any other day on which commercial
      banks in New York, New York are required or permitted by law to
      close.

     

    “Closing
      Date”
means
      May 16, 2007.

     

    
      
         

      

      
        -10-

        
          

        

      

      
         

      

    

    “Loan
      Documents”
means
      this Agreement, the Note and all other documents, agreements, certificates,
      notices and instruments executed and/or delivered by the Company in connection
      with the Loans or this Agreement.

     

    “Senior
      Lender”
means
      Wells Fargo Business Credit, Inc..

     

    “Senior
      Loan Agreement”
means
      that certain Credit and Security Agreement dated May 31, 2001, by and between
      the Borrower and the Senior Lender, as the same may be amended, restated,
      supplemented or otherwise modified from time to time.

     

    [remainder
      of this page intentionally left blank; signature page follows]

     

    
      
         

      

      
        -11-

        
          

        

      

      
         

      

    

    IN
      WITNESS WHEREOF, the parties hereto have executed this Credit Agreement on
      the
      date first written above.

     

    SAN
      HOLDINGS, INC.

    

    By:
      /s/
      Robert
      Ogden                                           

    Name:
      Robert
      Ogden                                            

    Title:
      CFO                                                               
      

    

    

    SUN
      CAPITAL PARTNERS II, LP, as 

    Administrative
      Agent and the Lender 

    

    By: Sun
      Capital Advisors II, LP, its 

    general
      partner

    

    By: Sun
      Capital Partners, LLC, its

    general
      partner

    

    By:
      /s/
      Michael
      McConnery                                 

    Name:
      Michael
      McConnery                                  

    Title:
      Vice
      President                                               

    

    

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    Exhibit
      A

    

    FORM
      OF PROMISSORY NOTE

     

     

    SAN
      HOLDINGS, INC.

    

    PROMISSORY
      NOTE

     

    
 

    
      	May 16, 2007	
              $10,000,000.00

            

    

     

    ON
      DEMAND, SAN HOLDINGS, INC., a Colorado corporation (the "Company"),
      hereby promises to pay to the order of SUN CAPITAL PARTNERS II, LP (the
      "Lender"),
      the
      principal amount of $10,000,000.00, or if less, the amount outstanding under
      the
      Credit Agreement referred to below, together with interest thereon payable
      at
      the times and at the rates and in the manner set forth in the Credit Agreement.
      

    

    This
      Promissory Note (this "Note")
      is
      issued pursuant to that certain Credit Agreement of even date herewith (as
      the
      same may be amended, restated, supplemented or otherwise modified from time
      to
      time, the "Credit
      Agreement"),
      by
      and among the Company and the Lender. The Credit Agreement contains terms
      governing the rights of the Lender, and all provisions of the Credit Agreement
      are hereby incorporated herein by reference. The undersigned agrees to pay
      to
      the holder hereof all court costs and other reasonable expenses, legal or
      otherwise, incurred or paid by such holder in connection with the collection
      of
      this Note. It is agreed that this Note and the rights and remedies of the holder
      hereof shall be construed in accordance with and governed by the laws of the
      State of Delaware.

    

    Upon
      the
      payment in full of all principal and accrued interest and unpaid interest owed
      on this Note and the termination of the Credit Agreement, this Note shall be
      surrendered to the Company for cancellation and shall not be reissued.

    

    The
      Company hereby waives presentment for payment, protest, demand, notice of
      protest, notice of nonpayment and diligence with respect to this Note, and
      waives and renounces all rights to the benefits of any statute of limitations
      or
      any moratorium, appraisement, exemption, or homestead now provided or that
      hereafter may be provided by any federal or applicable state statute, including
      but not limited to exemptions provided by or allowed under the Federal
      Bankruptcy Code, both as to itself and as to all of its property, whether real
      or personal, against the enforcement and collection of the obligations evidenced
      by this Note and any and all extensions, renewals, and modifications
      hereof.

     

    *
      * * *
      *

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    

    IN
      WITNESS WHEREOF, the Company has executed and delivered this Promissory Note
      on
      the date first above written.

    

    SAN
      HOLDINGS, INC., a Colorado corporation

    

    By:
      __________________________

    Name:________________________

    Title:_________________________

    

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    Exhibit
      B

    

    SAN
      HOLDINGS, INC.

    

    FORM
      OF NOTICE OF BORROWING

     

    

    Reference
      is made to that certain Credit Agreement dated as of May 16, 2007 (as the same
      may be amended, restated, supplemented or otherwise modified from time to time,
      the "Credit
      Agreement"),
      by
      and between the undersigned (the "Company"),
      the
      lenders party thereto from time to time, and Sun Capital Partners II, LP, as
      the
      Administrative Agent and the Lender. Capitalized terms used herein and not
      otherwise defined shall have the meanings ascribed thereto in the Credit
      Agreement. This notice is given pursuant to Section 1.D of the Credit Agreement.
      The Company hereby requests a Loan under the Credit Agreement as
      follows:

     

    The
      amount of the proposed Loan is $______________. 

     

    The
      requested borrowing date for the proposed Loan (which is a Business Day) is
      _____________, 200__. 

     

    In
      connection with the proposed Loan, the Company hereby makes the representations
      set forth in Section 1.D. to the Administrative Agent and the
      Lender.

    

    The
      Company has caused this Notice of Borrowing to be executed and delivered by
      its
      officer thereunto duly authorized on _____________, 200__.

     

    

    
      	 	
              SAN
                HOLDINGS, INC.

               

              By:_________________________________

              Name:_______________________________

              Title:________________________________

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00123-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00123-of-00352.parquet"}]]