Document:

exv4w5

EXHIBIT 4.5

 

LEGACY RESERVES LP

AND

LEGACY RESERVES FINANCE CORPORATION,

as Issuers,

AND

[                                        ],

as Trustee

 

INDENTURE

DATED AS OF                      __, 20__

 

SUBORDINATED DEBT SECURITIES

 

 

 

LEGACY RESERVES LP

RECONCILIATION AND TIE BETWEEN TRUST INDENTURE ACT OF 1939, AS AMENDED, 

AND INDENTURE, DATED AS OF
                     __, 20__

	 	 	 	 	 
	TRUST INDENTURE ACT SECTION	 	INDENTURE SECTION	 
	Section 310(a)(1)
	 	 	6.9	 
	(a)(2)
	 	 	6.9	 
	(a)(3)
	 	Not Applicable	 
	(a)(4)
	 	Not Applicable	 
	(a)(5)
	 	 	6.9	 
	(b)
	 	 	6.8	 
	 
	 	 	 	 
	Section 311
	 	 	6.13	 
	 
	 	 	 	 
	Section 312(a)
	 	 	7.1, 7.2 (a)	
	(b)
	 	 	7.2 (b)	
	(c)
	 	 	7.2 (c)	
	 
	 	 	 	 
	Section 313(a)
	 	 	7.3	 
	(b)
	 	 	*	 
	(c)
	 	 	*	 
	(d)
	 	 	7.3	 
	 
	 	 	 	 
	Section 314(a)
	 	 	7.4	 
	(a)(4)
	 	 	10.5	 
	(b)
	 	Not Applicable	 
	(c)(1)
	 	 	1.3	 
	(c)(2)
	 	 	1.3	 
	(c)(3)
	 	Not Applicable	 
	(d)
	 	Not Applicable	 
	(e)
	 	 	1.3	 
	 
	 	 	 	 
	Section 315(a)
	 	 	6.1 (a)	
	(b)
	 	 	6.2	 
	(c)
	 	 	6.1 (b)	
	(d)
	 	 	6.1 (c)	
	(d)(1)
	 	 	6.1 (a)(1)	
	(d)(2)
	 	 	6.1 (c)(2)	
	(d)(3)
	 	 	6.1 (c)(3)	
	(e)
	 	 	5.14	 
	 
	 	 	 	 
	Section 316(a)
	 	 	1.1, 1.2	 
	(a)(1)(A)
	 	 	5.2, 5.12	 
	(a)(1)(B)
	 	 	5.13	 
	(a)(2)
	 	Not Applicable	 
	(b)
	 	 	5.8	 
	(c)
	 	 	1.5 (f)	

 

 

	 	 	 	 	 
	TRUST INDENTURE ACT SECTION	 	INDENTURE SECTION	 
	Section 317(a)(1)
	 	 	5.3	 
	(a)(2)
	 	 	5.4	 
	(b)
	 	 	10.3	 
	 
	Section 318(a)
	 	 	1.8	 

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

 

			
	*	 	Deemed included pursuant to Section 318(c) of the Trust Indenture Act

 

 

TABLE OF CONTENTS

	 	 	 	 	 
	 	 	Page
	ARTICLE ONE DEFINITIONS AND OTHER PROVISIONS OF GENERAL APPLICATION
	 	 	1	 
	Section 1.1. Definitions
	 	 	1	 
	Section 1.2. Incorporation by Reference of Trust Indenture Act
	 	 	9	 
	Section 1.3. Compliance Certificates and Opinions
	 	 	9	 
	Section 1.4. Form of Documents Delivered to Trustee
	 	 	10	 
	Section 1.5. Acts of Holders; Record Dates
	 	 	10	 
	Section 1.6. Notices, Etc., to Trustee, Issuers and Guarantors
	 	 	11	 
	Section 1.7. Notice to Holders; Waiver
	 	 	12	 
	Section 1.8. Conflict with Trust Indenture Act
	 	 	12	 
	Section 1.9. Effect of Headings and Table of Contents
	 	 	13	 
	Section 1.10. Successors and Assigns
	 	 	13	 
	Section 1.11. Separability Clause
	 	 	13	 
	Section 1.12. Benefits of Indenture
	 	 	13	 
	Section 1.13. Force Majeure
	 	 	13	 
	Section 1.14. Waiver of Jury Trial
	 	 	13	 
	Section 1.15. Governing Law
	 	 	13	 
	Section 1.16. Legal Holidays
	 	 	13	 
	Section 1.17. Securities in a Composite Currency, Currency Unit or Foreign Currency
	 	 	14	 
	Section 1.18. Payment in Required Currency; Judgment Currency
	 	 	14	 
	Section 1.19. Language of Notices, Etc.
	 	 	15	 
	Section 1.20. Incorporators, Unitholders, Stockholders, Partners, Officers and Directors
of the Issuers and the Guarantors Exempt from Individual Liability
	 	 	15	 
	 
	 	 	 	 
	ARTICLE TWO SECURITY FORMS
	 	 	15	 
	Section 2.1. Forms Generally
	 	 	15	 
	Section 2.2. Form of Face of Security
	 	 	16	 
	Section 2.3. Form of Reverse of Security
	 	 	18	 
	Section 2.4. Global Securities
	 	 	23	 
	Section 2.5. Form of Trustee’s Certificate of Authentication
	 	 	23	 
	 
	 	 	 	 
	ARTICLE THREE THE SECURITIES
	 	 	24	 
	Section 3.1. Amount Unlimited; Issuable in Series
	 	 	24	 
	Section 3.2. Denominations
	 	 	26	 
	Section 3.3. Execution, Authentication, Delivery and Dating
	 	 	26	 
	Section 3.4. Temporary Securities
	 	 	28	 
	Section 3.5. Registration, Registration of Transfer and Exchange
	 	 	28	 
	Section 3.6. Mutilated, Destroyed, Lost and Stolen Securities
	 	 	30	 
	Section 3.7. Payment of Interest; Interest Rights Preserved
	 	 	31	 
	Section 3.8. Persons Deemed Owners
	 	 	32	 
	Section 3.9. Cancellation
	 	 	32	 
	Section 3.10. Computation of Interest
	 	 	33	 
	Section 3.11. CUSIP or CINS Numbers
	 	 	33	 
	 
	 	 	 	 
	ARTICLE FOUR SATISFACTION AND DISCHARGE
	 	 	33	 
	Section 4.1. Satisfaction and Discharge of Indenture
	 	 	33	 
	Section 4.2. Application of Trust Money
	 	 	34	 

i

 

	 	 	 	 	 
	 	 	Page
	ARTICLE FIVE REMEDIES
	 	 	34	 
	Section 5.1. Events of Default
	 	 	34	 
	Section 5.2. Acceleration of Maturity; Rescission and Annulment
	 	 	35	 
	Section 5.3. Collection of Indebtedness and Suits for Enforcement by Trustee
	 	 	36	 
	Section 5.4. Trustee May File Proofs of Claim
	 	 	37	 
	Section 5.5. Trustee May Enforce Claims Without Possession of Securities
	 	 	38	 
	Section 5.6. Application of Money Collected
	 	 	38	 
	Section 5.7. Limitation on Suits
	 	 	38	 
	Section 5.8. Unconditional Right of Holders to Receive Principal, Premium and Interest
	 	 	39	 
	Section 5.9. Restoration of Rights and Remedies
	 	 	39	 
	Section 5.10. Rights and Remedies Cumulative
	 	 	39	 
	Section 5.11. Delay or Omission Not Waiver
	 	 	39	 
	Section 5.12. Control by Holders
	 	 	39	 
	Section 5.13. Waiver of Past Defaults
	 	 	40	 
	Section 5.14. Undertaking for Costs
	 	 	40	 
	Section 5.15. Waiver of Stay, Extension or Usury Laws
	 	 	40	 
	 
	 	 	 	 
	ARTICLE SIX THE TRUSTEE
	 	 	41	 
	Section 6.1. Certain Duties and Responsibilities
	 	 	41	 
	Section 6.2. Notice of Defaults
	 	 	42	 
	Section 6.3. Certain Rights of Trustee
	 	 	42	 
	Section 6.4. Not Responsible for Recitals or Issuance of Securities
	 	 	43	 
	Section 6.5. May Hold Securities
	 	 	43	 
	Section 6.6. Money Held in Trust
	 	 	44	 
	Section 6.7. Compensation and Reimbursement
	 	 	44	 
	Section 6.8. Disqualification; Conflicting Interests
	 	 	44	 
	Section 6.9. Corporate Trustee Required; Eligibility
	 	 	45	 
	Section 6.10. Resignation and Removal; Appointment of Successor
	 	 	45	 
	Section 6.11. Acceptance of Appointment by Successor
	 	 	46	 
	Section 6.12. Merger, Conversion, Consolidation or Succession to Business
	 	 	47	 
	Section 6.13. Preferential Collection of Claims Against Issuers
	 	 	47	 
	Section 6.14. Appointment of Authenticating Agent
	 	 	48	 
	 
	 	 	 	 
	ARTICLE SEVEN HOLDERS’ LISTS AND REPORTS BY TRUSTEE AND COMPANY
	 	 	49	 
	Section 7.1. Issuers to Furnish Trustee Names and Addresses of Holders
	 	 	49	 
	Section 7.2. Preservation of Information; Communications to Holders
	 	 	49	 
	Section 7.3. Reports by Trustee
	 	 	50	 
	Section 7.4. Reports by Company
	 	 	51	 
	 
	 	 	 	 
	ARTICLE EIGHT CONSOLIDATION, AMALGAMATION, MERGER AND SALE
	 	 	51	 
	Section 8.1. Issuers May Consolidate, Etc., Only on Certain Terms
	 	 	51	 
	Section 8.2. Successor Substituted
	 	 	52	 
	 
	 	 	 	 
	ARTICLE NINE AMENDMENT, SUPPLEMENT AND WAIVER
	 	 	52	 
	Section 9.1. Without Consent of Holders
	 	 	52	 
	Section 9.2. With Consent of Holders
	 	 	54	 
	Section 9.3. Execution of Amendments and Supplemental Indentures
	 	 	55	 
	Section 9.4. Effect of Amendments and Supplemental Indentures
	 	 	55	 
	Section 9.5. Conformity with Trust Indenture Act
	 	 	55	 
	Section 9.6. Reference in Securities to Amendments or Supplemental Indentures
	 	 	55	 

ii

 

	 	 	 	 	 
	 	 	Page
	ARTICLE TEN COVENANTS
	 	 	56	 
	Section 10.1. Payment of Principal, Premium and Interest
	 	 	56	 
	Section 10.2. Maintenance of Office or Agency
	 	 	56	 
	Section 10.3. Money for Securities Payments to Be Held in Trust
	 	 	56	 
	Section 10.4. Existence
	 	 	57	 
	Section 10.5. Statement by Officers as to Default
	 	 	58	 
	 
	 	 	 	 
	ARTICLE ELEVEN REDEMPTION OF SECURITIES
	 	 	58	 
	Section 11.1. Applicability of Article
	 	 	58	 
	Section 11.2. Election to Redeem; Notice to Trustee
	 	 	58	 
	Section 11.3. Selection by Trustee of Securities to Be Redeemed
	 	 	58	 
	Section 11.4. Notice of Redemption
	 	 	59	 
	Section 11.5. Deposit of Redemption Price
	 	 	59	 
	Section 11.6. Securities Payable on Redemption Date
	 	 	59	 
	Section 11.7. Securities Redeemed in Part
	 	 	60	 
	 
	 	 	 	 
	ARTICLE TWELVE SINKING FUNDS
	 	 	60	 
	Section 12.1. Applicability of Article
	 	 	60	 
	Section 12.2. Satisfaction of Sinking Fund Payments with Securities
	 	 	60	 
	Section 12.3. Redemption of Securities for Sinking Fund
	 	 	61	 
	 
	 	 	 	 
	ARTICLE THIRTEEN DEFEASANCE
	 	 	61	 
	Section 13.1. Option to Effect Legal Defeasance or Covenant Defeasance
	 	 	61	 
	Section 13.2. Legal Defeasance and Discharge
	 	 	61	 
	Section 13.3. Covenant Defeasance
	 	 	62	 
	Section 13.4. Conditions to Legal or Covenant Defeasance
	 	 	62	 
	Section 13.5. Deposited Money and U.S. Government Obligations to be Held in Trust, Other
Miscellaneous Provisions
	 	 	63	 
	Section 13.6. Reinstatement
	 	 	64	 
	 
	 	 	 	 
	ARTICLE FOURTEEN GUARANTEE OF SECURITIES
	 	 	64	 
	Section 14.1. Securities Guarantee
	 	 	64	 
	Section 14.2. Limitation on Guarantor Liability
	 	 	66	 
	Section 14.3. Execution and Delivery of Securities Guarantee Notation
	 	 	66	 
	 
	 	 	 	 
	ARTICLE FIFTEEN SUBORDINATION OF SECURITIES
	 	 	66	 
	Section 15.1. Securities Subordinated to Senior Debt
	 	 	66	 
	Section 15.2. No Payment on Securities in Certain Circumstances
	 	 	66	 
	Section 15.3. Payment over of Proceeds upon Dissolution, Etc
	 	 	67	 
	Section 15.4. Subrogation
	 	 	69	 
	Section 15.5. Obligations of Issuers Unconditional
	 	 	69	 
	Section 15.6. Notice to Trustee
	 	 	70	 
	Section 15.7. Reliance on Judicial Order or Certificate of Liquidating Agent
	 	 	70	 
	Section 15.8. Trustee’s Relation to Senior Debt
	 	 	71	 
	Section 15.9. Subordination Rights Not Impaired by Acts or Omissions of the Issuers or
Holders of Senior Debt
	 	 	71	 
	Section 15.10. Holders Authorize Trustee to Effectuate Subordination of Securities
	 	 	71	 
	Section 15.11. Not to Prevent Events of Default
	 	 	71	 
	Section 15.12. Trustee’s Compensation Not Prejudiced
	 	 	71	 
	Section 15.13. No Waiver of Subordination Provisions
	 	 	72	 
	Section 15.14. Payments May Be Paid Prior to Dissolution
	 	 	72	 

iii

 

	 	 	 	 	 
	 	 	Page
	Section 15.15. Trust Moneys Not Subordinated
	 	 	72	 
	 
	 	 	 	 
	ARTICLE SIXTEEN SUBORDINATION OF SECURITIES GUARANTEE
	 	 	72	 
	Section 16.1. Securities Guarantee Subordinated to Guarantor Senior Debt
	 	 	72	 
	Section 16.2. No Payment on Securities Guarantee in Certain Circumstances
	 	 	73	 
	Section 16.3. Payment over of Proceeds upon Dissolution, Etc
	 	 	73	 
	Section 16.4. Subrogation
	 	 	75	 
	Section 16.5. Obligations of Guarantor Unconditional
	 	 	75	 
	Section 16.6. Notice to Trustee
	 	 	76	 
	Section 16.7. Reliance on Judicial Order or Certificate of Liquidating Agent
	 	 	77	 
	Section 16.8. Trustee’s Relation to Guarantor Senior Debt
	 	 	77	 
	Section 16.9. Subordination Rights Not Impaired by Acts or Omissions of a Guarantor or
Holders of Guarantor Senior Debt
	 	 	77	 
	Section 16.10. Holders Authorize Trustee to Effectuate Subordination of Securities Guarantee

	 	 	77	 
	Section 16.11. Not to Prevent Events of Default

	 	 	78	 
	Section 16.12. Trustee’s Compensation Not Prejudiced
	 	 	78	 
	Section 16.13. No Waiver of Subordination Provisions
	 	 	78	 
	Section 16.14. Payments May Be Paid Prior to Dissolution
	 	 	78	 

NOTE: This table of contents shall not, for any purpose, be deemed to be a part of the Indenture.

iv

 

PARTIES

     INDENTURE,
dated as of
                    ,
20        , among LEGACY RESERVES LP, a limited partnership
duly organized and existing under the laws of the State of Delaware (herein called the “Company”),
LEGACY RESERVES FINANCE CORPORATION, a Delaware corporation (“Finance Corp.,” and together with
the Company, the “Issuers”), the Guarantors (as defined hereinafter) and [                                        ], a
[                                        ], as trustee (the “Trustee”).

RECITALS OF THE ISSUERS:

     The Issuers have duly authorized the execution and delivery of this Indenture to provide for
the issuance from time to time of the Issuers’ unsecured subordinated debentures, notes or other
evidences of indebtedness (herein called the “Securities”), which may be guaranteed by the
Guarantors, to be issued in one or more series as provided in this Indenture.

     All things necessary to make this Indenture a valid agreement of the Issuers, in accordance
with its terms, have been done.

     This Indenture is subject to the provisions of the Trust Indenture Act (as defined herein)
that are required to be a part of this Indenture and, to the extent applicable, shall be governed
by such provisions.

     NOW, THEREFORE, THIS INDENTURE WITNESSETH:

     For and in consideration of the premises and the purchase of the Securities by the Holders
(as defined herein) thereof, it is mutually covenanted and agreed, for the equal and proportionate
benefit of all Holders of the Securities or of series thereof, as follows:

ARTICLE ONE

DEFINITIONS AND OTHER PROVISIONS OF GENERAL APPLICATION

Section 1.1.
Definitions.

     For all purposes of this Indenture, except as otherwise expressly provided or unless the
context otherwise requires:

     (a) the terms defined in this Article have the meanings assigned to them in this
Article and include the plural as well as the singular;

     (b) all accounting terms not otherwise defined herein have the meanings assigned to
them in accordance with GAAP;

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

     (d) the words “Article” and “Section” refer to an Article and Section, respectively, of
this Indenture;

     (e) the word “includes” and its derivatives means “includes, but is not limited to” and
corresponding derivative definitions; and

 

 

     (f) references to any officer of any partnership or limited liability company that does
not have officers but is managed or controlled, directly or indirectly, by an entity that
does have officers, shall be deemed to be references to the officers of such managing or
controlling entity.

     Certain terms, used principally in Article Six, are defined in that Article.

     “Act,” when used with respect to any Holder, has the meaning specified in Section 1.5.

     “Additional Defeasible Provision” means a covenant or other provision that is (a) made part of
this Indenture pursuant to an indenture supplemental hereto, a Board Resolution or an Officer’s
Certificate delivered pursuant to Section 3.1, and (b) pursuant to the terms set forth in such
supplemental indenture, Board Resolution or Officer’s Certificate, made subject to the provisions
of Article Thirteen.

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

     “Authenticating Agent” means any Person authorized by the Trustee to act on behalf of the
Trustee to authenticate Securities.

     “Banking Day” means, in respect of any city, any date on which commercial banks are open for
business in that city.

     “Bankruptcy Law” means any applicable Federal or State bankruptcy, insolvency, reorganization
or other similar law.

     “Board of Directors” means:

     (a) with respect to a corporation, the board of directors of the corporation or any committee
thereof duly authorized to act on behalf of such board;

     (b) with respect to a partnership, the Board of Directors of the general partner of the
partnership;

     (c) with respect to a limited liability company, the managing member or members or any
controlling committee of managers or members thereof or any board or committee serving a similar
management function; and

     (d) with respect to any other Person, the individual or board or committee of such Person
serving a management function similar to those described in clauses (a), (b) or (c) of this
definition.

     “Board Resolution” means a copy of a resolution certified by the Secretary or an Assistant
Secretary of the Company, Finance Corp. or a Guarantor, the principal financial officer of the
Company, Finance Corp. or a Guarantor, any other authorized officer of the Company, Finance Corp.
or a Guarantor, or a person duly authorized by any of them, in each case as applicable, to have
been duly adopted by the Board of Directors and to be in full force and effect on the date of such
certification, and delivered to the Trustee. Where any provision of this Indenture refers to
action to be taken pursuant to a Board Resolution (including the establishment of any series of the
Securities and the forms and terms thereof), such action may be taken by any committee, officer or
employee of the Company, Finance Corp.

2

 

or a Guarantor, as applicable, authorized to take such action by the Board of Directors, as
evidenced by a Board Resolution.

     “Business Day,” when used with respect to any Place of Payment or other location, means,
except as otherwise provided as contemplated by Section 3.1 with respect to any series of
Securities, each Monday, Tuesday, Wednesday, Thursday and Friday that is not a day on which banking
institutions and trust companies in that Place of Payment or other location are authorized or
obligated by law, executive order or regulation to close.

     “CINS” means CUSIP International Numbering System.

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

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

     “Corporate Trust Office” means the office of the Trustee at the address specified in Section
3.5 or such other address as to which the Trustee may give notice to the Issuers.

     “corporation,” when used in reference to the Trustee or any prospective Trustee, shall include
any corporation, company, association, partnership, limited partnership, limited liability company,
joint-stock company, trust or other entity, in each case, satisfying the requirements of Section
310(a)(1) of the Trust Indenture Act.

     “Covenant Defeasance” has the meaning specified in Section 13.3.

     “CUSIP” means the Committee on Uniform Security Identification Procedures.

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

     “Debt” means any obligation created or assumed by any Person for the repayment of money
borrowed and any purchase money obligation created or assumed by such Person and any guarantee of
the foregoing.

     “Default” means, with respect to a series of Securities, any event that is, or after notice or
lapse of time or both would be, an Event of Default.

     “Defaulted Interest” has the meaning specified in Section 3.7.

     “Definitive Security” means a security other than a Global Security or a temporary Security.

     “Depositary” means, with respect to the Securities of any series issuable or issued in whole
or in part in the form of one or more Global Securities, a clearing agency registered under the
Exchange Act that is designated to act as Depositary for such Securities as contemplated by Section
3.1, until a successor Depositary shall have become such pursuant to the applicable provisions of
this Indenture, and thereafter shall mean or include each Person which is a Depositary hereunder,
and if at any time there is more than one such Person, shall be a collective reference to such
Persons.

3

 

     “Designated Guarantor Senior Debt” shall have the meaning given to such term in a Board
Resolution, Officer’s Certificate or indenture supplemental hereto delivered pursuant to Section
3.1.

     “Designated Senior Debt” shall have the meaning given to such term in a Board Resolution,
Officer’s Certificate or indenture supplemental hereto delivered pursuant to Section 3.1.

     “Dollar” or “$” means the coin or currency of the United States of America, which at the time
of payment is legal tender for the payment of public and private debts.

     “Event of Default” has the meaning specified in Section 5.1.

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

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

     “Foreign Currency” means a currency used by the government of a country other than the United
States of America.

     “GAAP” means generally accepted accounting principles in the United States of America as in
effect from time to time, including those set forth in (1) the Financial Accounting Standards Board
Accounting Standards Codification and any related Accounting Standards Updates by the Financial
Accounting Standards Board, (2) such other statements by such other entity as are approved by a
significant segment of the accounting profession and (3) the rules and regulations of the SEC
governing the inclusion of financial statements in periodic reports required to be filed pursuant
to Section 13 of the Exchange Act, including opinions and pronouncements in staff accounting
bulletins and similar written statements from the accounting staff of the SEC. All computations
based on GAAP contained in the Indenture shall be computed in conformity with GAAP.

     “Global Security” means a Security in global form that evidences all or part of a series of
Securities and is authenticated and delivered to, and registered in the name of, the Depositary for
the Securities of such series or its nominee.

     “Guaranteed Securities” has the meaning specified in Section 14.1.

     “Guarantor” means each Person that becomes a guarantor of any Securities pursuant to the
applicable provisions of this Indenture.

     “Guarantor Senior Debt” means, unless otherwise provided with respect to the Securities of a
series as contemplated by Section 3.1, (a) all Debt of a Guarantor, whether currently outstanding
or hereafter issued, unless, by the terms of the instrument creating or evidencing such Debt, it is
provided that such Debt is not superior in right of payment to the Securities Guarantee or to other
Debt which is pari passu with or subordinated to the Securities Guarantee, and (b) any
modifications, refunding, deferrals, renewals or extensions of any such Debt or securities, notes
or other evidence of Debt issued in exchange for such Debt; provided that in no event shall
“Guarantor Senior Debt” include (i) Debt of a Guarantor owed or owing to any Subsidiary of such
Guarantor or any officer, director or employee of such Guarantor or any Subsidiary of such
Guarantor, (ii) Debt to trade creditors or (iii) any liability for taxes owed or owing by a
Guarantor.

4

 

     “Holder” means a Person in whose name a Security is registered in the Security Register.

     “Indenture” means this instrument as originally executed or as it may from time to time be
supplemented or amended by one or more amendments or indentures supplemental hereto entered into
pursuant to the applicable provisions hereof, including, for all purposes of this instrument, and
any such amendment or supplemental indenture, the provisions of the Trust Indenture Act that are
deemed to be part of and govern this instrument and any such amendment or supplemental indenture,
respectively. The term “Indenture” also shall include the terms of particular series of Securities
established as contemplated by Section 3.1.

     “interest,” when used with respect to an Original Issue Discount Security which by its terms
bears interest only after Maturity, means interest payable after Maturity.

     “Interest Payment Date,” when used with respect to any Security, means the Stated Maturity of
an installment of interest on such Security.

     “Issuer Request” or “Issuer Order” means, in the case of the Issuers, a written request or
order signed in the name of each of the Issuers by its Chairman of the Board, its Chief Executive
Officer, its Chief Financial Officer, its President, any of its Vice Presidents or any other duly
authorized officer of the respective Issuer or any person duly authorized by any of them, and
delivered to the Trustee and, in the case of a Guarantor, a written request or order signed in the
name of such Guarantor by its Chairman of the Board, its Chief Executive Officer, its President,
any of its Vice Presidents or any other duly authorized officer of such Guarantor or any person
duly authorized by any of them, and delivered to the Trustee.

     “Issuers” means the Company and Finance Corp.

     “Judgment Currency” has the meaning specified in Section 1.18.

     “Legal Defeasance” has the meaning specified in Section 13.2.

     “mandatory sinking fund payment” has the meaning specified in Section 12.1.

     “Market Exchange Rate” has the meaning specified in Section 1.17.

     “Maturity,” when used with respect to any Security, means the date on which the principal of
such Security or an installment of principal becomes due and payable as therein or herein provided,
whether at the Stated Maturity or by declaration of acceleration, call for redemption or otherwise.

     “Notice of Default” means a written notice of the kind specified in Section 5.1(c) or Section
5.1(d).

     “Officer’s Certificate” means, in the case of the Issuers, a certificate signed by the
Chairman of the Board, the Chief Executive Officer, the Chief Financial Officer, the President, any
Vice President or any other duly authorized officer of each of the Issuers, or a person duly
authorized by any of them, and delivered to the Trustee and, in the case of a Guarantor, a
certificate signed by the Chairman of the Board, the Chief Executive Officer, the President, any
Vice President or any other duly authorized officer of such Guarantor, or a person duly authorized
by any of them, and delivered to the Trustee.

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     “Opinion of Counsel” means a written opinion of counsel, who may be an employee of or counsel
for the any of the Issuers or a Guarantor, as the case may be, and who shall be reasonably
acceptable to the Trustee.

     “optional sinking fund payment” has the meaning specified in Section 12.1.

     “Original Issue Discount Security” means any Security which provides for an amount less than
the principal amount thereof to be due and payable upon a declaration of acceleration of the
Maturity thereof pursuant to Section 5.2.

     “Outstanding,” when used with respect to Securities, means, as of the date of determination,
all Securities theretofore authenticated and delivered under this Indenture, except:

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

     (b) Securities for whose payment or redemption money in the necessary amount has been
theretofore deposited with the Trustee or any Paying Agent (other than an Issuer) in trust
or set aside and segregated in trust by the Issuers (if an Issuer shall act as its own
Paying Agent) for the Holders of such Securities; provided, however, that, if such
Securities are to be redeemed, notice of such redemption has been duly given pursuant to
this Indenture or provision therefor satisfactory to the Trustee has been made; and

     (c) Securities which have been paid pursuant to Section 3.6 or in exchange for or in
lieu of which other Securities have been authenticated and delivered pursuant to this
Indenture, other than any such Securities in respect of which there shall have been
presented to the Trustee proof satisfactory to it that such Securities are held by a
protected purchaser in whose hands such Securities are valid obligations of the Issuers;

provided, however, that in determining whether the Holders of the requisite principal amount of the
Outstanding Securities have given any request, demand, authorization, direction, notice, consent or
waiver hereunder, (i) the principal amount of an Original Issue Discount Security that shall be
deemed to be Outstanding shall be the amount of the principal thereof that would be due and payable
as of the date of such determination upon acceleration of the Maturity thereof on such date
pursuant to Section 5.2, (ii) the principal amount of a Security denominated in one or more
currencies or currency units other than U.S. dollars shall be the U.S. dollar equivalent of such
currencies or currency units, determined in the manner provided as contemplated by Section 3.1 on
the date of original issuance of such Security or by Section 1.17, if not otherwise so provided
pursuant to Section 3.1, of the principal amount (or, in the case of an Original Issue Discount
Security, the U.S. dollar equivalent (as so determined) on the date of original issuance of such
Security of the amount determined as provided in clause (i) above) of such Security, and (iii)
Securities owned by an Issuer, any Guarantor or any other obligor upon the Securities or any
Affiliate of the Company or of such other obligor shall be disregarded and deemed not to be
Outstanding, except that, in determining whether the Trustee shall be protected in relying upon any
such request, demand, authorization, direction, notice, consent or waiver, only Securities which
the Trustee knows to be so owned shall be so disregarded. Securities so owned as described in
clause (iii) of the immediately preceding sentence which have been pledged in good faith may be
regarded as Outstanding if the pledgee establishes to the satisfaction of the Trustee the pledgee’s
right to act with respect to such Securities and that the pledgee is not an Issuer, a Guarantor or
any other obligor upon the Securities or any Affiliate of the Company or of such other obligor.

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     “Paying Agent” means any Person authorized by the Issuers to pay the principal of and any
premium or interest on any Securities on behalf of the Issuers.

     “Payment Blockage Period” has the meaning specified in Section 15.2.

     “Periodic Offering” means an offering of Securities of a series from time to time, the
specific terms of which Securities, including, without limitation, the rate or rates of interest or
formula for determining the rate or rates of interest thereon, if any, the Stated Maturity or
Stated Maturities thereof, the original issue date or dates thereof, the redemption provisions, if
any, with respect thereto, and any other terms specified as contemplated by Section 3.1 with
respect thereto, are to be determined by the Company upon the issuance of such Securities.

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

     “Place of Payment,” when used with respect to the Securities of any series, means, unless
otherwise specifically provided for with respect to such series as contemplated by Section 3.1, the
office or agency of the Issuers and such other place or places where, subject to the provisions of
Section 10.2, the principal of and any premium and interest on the Securities of that series are
payable as contemplated by Section 3.1.

     “Predecessor Security” of any particular Security means every previous Security evidencing all
or a portion of the same debt as that evidenced by such particular Security; and, for the purposes
of this definition, any Security authenticated and delivered under Section 3.6 in exchange for or
in lieu of a mutilated, destroyed, lost or stolen Security shall be deemed to evidence the same
debt as the mutilated, destroyed, lost or stolen Security.

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

     “Redemption Price,” when used with respect to any Security to be redeemed, means the price at
which it is to be redeemed pursuant to this Indenture.

     “Regular Record Date” for the interest payable on any Interest Payment Date on the Securities
of any series means the date specified for that purpose as contemplated by Section 3.1.

     “Required Currency” has the meaning specified in Section 1.18.

     “Responsible Officer,” when used with respect to the Trustee, means any officer within the
Corporate Trust Office of the Trustee (or any successor group of the Trustee) or any other officer
of the Trustee customarily performing functions similar to those performed by any of the above
designated officers and also means, with respect to a particular corporate trust matter, any other
officer to whom such matter is referred because of his knowledge of and familiarity with the
particular subject.

     “SEC” means the Securities and Exchange Commission, as from time to time constituted, created
under the Exchange Act, or, if at any time after the execution of this instrument such commission
is not existing and performing the duties now assigned to it under the Trust Indenture Act, then
the body performing such duties at such time.

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     “Securities” has the meaning stated in the first recital of this Indenture and more
particularly means any Securities authenticated and delivered under this Indenture.

     “Securities Guarantee” means each guarantee of the obligations of the Issuers under this
Indenture and the Securities by a Guarantor in accordance with the provisions hereof.

     “Securities Guarantee Payment Blockage Period” has the meaning specified in Section 16.2.

     “Security Register” and “Security Registrar” have the respective meanings specified in Section
3.5.

     “Senior Debt” means, unless otherwise provided with respect to the Securities of a series as
contemplated by Section 3.1, (a) all Debt of the Issuers, whether currently outstanding or
hereafter issued, unless, by the terms of the instrument creating or evidencing such Debt, it is
provided that such Debt is not superior in right of payment to the Securities or to other Debt
which is pari passu with or subordinated to the Securities, and (b) any modifications, refunding,
deferrals, renewals or extensions of any such Debt or securities, notes or other evidence of Debt
issued in exchange for such Debt; provided that in no event shall “Senior Debt” include (i) Debt of
the Issuers owed or owing to any Subsidiary of the Issuers or any officer, director or employee of
the Issuers or any Subsidiary of the Issuers, (ii) Debt to trade creditors or (iii) any liability
for taxes owned or owing by the Issuers.

     “Special Record Date” for the payment of any Defaulted Interest means a date fixed by the
Trustee pursuant to Section 3.7.

     “Stated Maturity,” when used with respect to any Security or any installment of principal
thereof or interest thereon, means the date specified in such Security as the fixed date on which
the principal of such Security or such installment of principal or interest is due and payable.

     “Subsidiary” means (a) a corporation more than 50% of the outstanding voting stock of which is
owned, directly or indirectly, by either of the Issuers or by one or more other Subsidiaries, or by
either of the Issuers and one or more other Subsidiaries or (b) any partnership or other business
organization more than 50% of the ownership interests having ordinary voting power of which is so
owned. For the purposes of this definition, “voting stock” means capital stock or equity interests
which ordinarily have voting power for the election of directors, whether at all times or only so
long as no senior class of stock has such voting power by reason of any contingency.

     “Trustee” means the Person named as the “Trustee” in the first paragraph of this instrument
until a successor Trustee shall have become such pursuant to the applicable provisions of this
Indenture, and thereafter “Trustee” shall mean or include each Person who is then a Trustee
hereunder, and if at any time there is more than one such Person, “Trustee” as used with respect to
the Securities of any series shall mean the Trustee with respect to Securities of that series.

     “Trust Indenture Act” means the Trust Indenture Act of 1939, as amended, as in force at the
date as of which this instrument was executed, except as provided in Section 9.5; provided,
however, that if the Trust Indenture Act of 1939 is amended after such date, “Trust Indenture Act”
means, to the extent required by any such amendment, the Trust Indenture Act of 1939 as so amended.

     “U.S. Person” shall have the meaning assigned to such term in Section 7701(a)(30) of the Code.

     “U.S. Government Obligations” means securities which are (a) direct obligations of the United
States for the payment of which its full faith and credit is pledged, or (b) obligations of a
Person

8

 

controlled or supervised by and acting as an agency or instrumentality of the United States,
the payment of which is unconditionally guaranteed as a full faith and credit obligation by the
United States, and which are not callable or redeemable at the option of the issuer thereof.

     “Vice President,” when used with respect to an Issuer, the Guarantor or the Trustee, means any
vice president, regardless of whether designated by a number or a word or words added before or
after the title “vice president.”

Section 1.2. Incorporation by Reference of Trust Indenture Act.

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

“commission” means the SEC.

“indenture securities” means the Securities.

“indenture security holder” means a Holder.

“indenture to be qualified” means this Indenture.

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

“obligor” on the indenture securities means the Issuers, the Guarantor (if
applicable) or any other obligor on the indenture securities.

     All terms used in this Indenture that are defined by the Trust Indenture Act, defined by a
Trust Indenture Act reference to another statute or defined by an SEC rule under the Trust
Indenture Act have the meanings so assigned to them.

Section 1.3. Compliance Certificates and Opinions.

     Upon any application or request by the Issuers or a Guarantor to the Trustee to take any
action under any provision of this Indenture, the Issuers or such Guarantor, as the case may be,
shall furnish to the Trustee an Officer’s Certificate stating that all conditions precedent, if
any, provided for in this Indenture relating to the proposed action have been complied with and an
Opinion of Counsel stating that in the opinion of such counsel all such conditions precedent, if
any, have been complied with, except that in the case of any such application or request as to
which the furnishing of such documents is specifically required by any provision of this Indenture
relating to such particular application or request, no additional certificate or opinion need be
furnished except as required under Section 314(c) of the Trust Indenture Act.

     Every certificate or opinion with respect to compliance with a condition or covenant provided
for in this Indenture (except for certificates provided for in Section 10.5) shall include:

     (a) a statement that each individual signing such certificate or opinion has read such
covenant or condition and the definitions herein relating thereto;

     (b) a brief statement as to the nature and scope of the examination or investigation
upon which the statements or opinions contained in such certificate or opinion are based;

9

 

     (c) a statement that, in the opinion of each such individual, he has made such
examination or investigation as is necessary to enable him to express an informed opinion as
to whether such covenant or condition has been complied with; and

     (d) a statement as to whether, in the opinion of each such individual, such condition
or covenant has been complied with.

Section 1.4. Form of Documents Delivered to Trustee.

     In any case where several matters are required to be certified by, or covered by an opinion
of, any specified Person, it is not necessary that all such matters be certified by, or covered by
the opinion of, only one such Person, or that they be so certified or covered by only one document,
but one such Person may certify or give an opinion with respect to some matters and one or more
other such Persons as to other matters, and any such Person may certify or give an opinion as to
such matters in one or several documents.

     Any certificate or opinion of an officer of an Issuer or a Guarantor may be based, insofar as
it relates to legal matters, upon a certificate or opinion of, or representations by, counsel,
unless such officer knows or, in the exercise of reasonable care, should know that the certificate
or opinion or representations with respect to the matters upon which his certificate or opinion is
based are erroneous. Any such certificate or Opinion of Counsel may be based, insofar as it
relates to factual matters, upon a certificate or opinion of, or representations by, an officer or
officers of an Issuer or a Guarantor, as the case may be, stating that the information with respect
to such factual matters is in the possession of the respective Issuer or the Guarantor, as the case
may be, unless such counsel knows that the certificate or opinion or representations with respect
to such matters are erroneous.

     Where any Person is required to make, give or execute two or more applications, requests,
consents, certificates, statements, opinions or other instruments under this Indenture, they may,
but need not, be consolidated and form one instrument.

Section 1.5. Acts of Holders; Record Dates.

     (a) Any request, demand, authorization, direction, notice, consent, waiver or other
action provided by this Indenture to be given or taken by Holders may be embodied in and
evidenced by one or more instruments of substantially similar tenor signed (either
physically or by means of a facsimile or an electronic transmission, provided that such
electronic transmission is transmitted through the facilities of a Depositary) by such
Holders in person or by agent duly appointed in writing; and, except as herein otherwise
expressly provided, such action shall become effective when such instrument or instruments
are delivered to the Trustee and, where it is hereby expressly required, to the Issuers or
the Guarantors. Such instrument or instruments (and the action embodied therein and
evidenced thereby) are herein sometimes referred to as the “Act” of the Holders signing such
instrument or instruments. Proof of execution of any such instrument or of a writing
appointing any such agent shall be sufficient for any purpose of this Indenture and
(subject to Section 315 of the Trust Indenture Act) conclusive in favor of the Trustee,
the Issuers and, if applicable, the Guarantors, if made in the manner provided in this
Section.

     (b) The fact and date of the execution by any Person of any such instrument or writing
may be proved by the affidavit of a witness of such execution or by a certificate of a
notary public or other officer authorized by law to take acknowledgments of deeds,
certifying that the individual signing such instrument or writing acknowledged to him the
execution thereof. Where such execution is by a signer acting in a capacity other than his
individual capacity, such

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certificate or affidavit shall also constitute sufficient proof of
his authority. The fact and date of the execution of any such instrument or writing, or the
authority of the Person executing the same, may also be proved in any other manner which the
Trustee deems sufficient.

     (c) The ownership, principal amount and serial numbers of Securities held by any
Person, and the date of commencement of such Person’s holding of same, shall be proved by
the Security Register.

     (d) Any request, demand, authorization, direction, notice, consent, waiver or other Act
of the Holder of any Security shall bind every future Holder of the same Security and the
Holder of every Security issued upon the registration of transfer thereof or in exchange
therefor or in lieu thereof in respect of anything done, omitted or suffered to be done by
the Trustee, the Issuers or, if applicable, the Guarantors in reliance thereon, regardless
of whether notation of such action is made upon such Security.

     (e) Without limiting the foregoing, a Holder entitled to give or take any action
hereunder with regard to any particular Security may do so with regard to all or any part of
the principal amount of such Security or by one or more duly appointed agents each of which
may do so pursuant to such appointment with regard to all or any different part of such
principal amount.

     (f) The Issuers may set any day as the record date for the purpose of determining the
Holders of Outstanding Securities of any series entitled to give or take any request,
demand, authorization, direction, notice, consent, waiver or other Act provided or permitted
by this Indenture to be given or taken by Holders of Securities of such series, but the
Issuers shall have no obligation to do so. With regard to any record date set pursuant to
this paragraph, the Holders of Outstanding Securities of the relevant series on such record
date (or their duly appointed agents), and only such Persons, shall be entitled to give or
take the relevant action, regardless of whether such Holders remain Holders after such
record date.

Section 1.6. Notices, Etc., to Trustee, Issuers and Guarantors.

     (a) Any notice, request, demand, authorization, direction, consent, waiver or other
communication by the Issuers, any of the Guarantors or the Trustee to the others is duly
given if in writing and delivered in person or mailed by first class mail, postage prepaid,
facsimile or overnight air courier guaranteeing next day delivery, to the others’ address:

If to the Issuers and/or any Guarantor:

Legacy Reserves LP

303 W. Wall Street, Suite 1400

Midland, Texas 79701

Facsimile: [                    ]

Attention: [                    ]

with a copy to:

Andrews Kurth LLP

600 Travis, Suite 4200

Houston, Texas 77002

Telephone: (713) 220-4200

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Facsimile: (713) 220-4285

Attention: Gislar Donnenberg

If to the Trustee:

[                    ]

[                    ]

[                    ]

Telephone: [                    ]

Facsimile: [                    ]

Attention: [                    ]

     (b) The Issuers, the Guarantors or the Trustee, by notice to the others, may designate
additional or different addresses for subsequent notices or communications.

     (c) All notices and communications (other than those sent to Holders, unless mailed in
the manner herein prescribed) shall be deemed to have been duly given: at the time
delivered by hand, if personally delivered; three Business Days after being deposited in the
mail, postage prepaid, if mailed; when receipt acknowledged, if telecopied; and the next
Business Day after timely delivery to the courier, if sent by overnight air courier
guaranteeing next day delivery.

Section 1.7. Notice to Holders; Waiver.

     Where this Indenture provides for notice to Holders of any event, such notice shall be
sufficiently given (unless otherwise herein expressly provided) if in writing and mailed,
first-class postage prepaid, to each Holder affected by such event, at such Holder’s address as it
appears in the Security Register, not later than the latest date, and not earlier than the earliest
date, prescribed for the giving of such notice. In any case where notice to Holders is given by
mail, neither the failure to mail such notice, nor any defect in any notice so mailed, to any
particular Holder shall affect the sufficiency of such notice with respect to other Holders. Any
notice mailed to a Holder in the manner herein prescribed shall be conclusively deemed to have been
received by such Holder, regardless of whether such Holder actually receives such notice.

     Where this Indenture provides for notice in any manner, such notice may be waived in writing
by the Person entitled to receive such notice, either before or after the event, and such waiver
shall be the equivalent of such notice. Waivers of notice by Holders shall be filed with the
Trustee, but such filing shall not be a condition precedent to the validity of any action taken in
reliance upon such waiver.

     In case it shall be impracticable to give such notice by mail by reason of the suspension of
regular mail service or by reason of any other cause, then such notification as shall be made with
the approval of the Trustee shall constitute a sufficient notification for every purpose hereunder.

Section 1.8. Conflict with Trust Indenture Act.

     If any provision hereof limits, qualifies or conflicts with a provision of the Trust Indenture
Act that is required under such Act to be a part of and govern this Indenture, the provision of the
Trust Indenture Act shall control. If any provision of this Indenture modifies or excludes any
provision of the Trust Indenture Act that may be so modified or excluded, the provision of the
Trust Indenture Act shall be deemed to apply to this Indenture as so modified or excluded, as the
case may be.

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Section 1.9. Effect of Headings and Table of Contents.

     The Article and Section headings herein and the Table of Contents are for convenience only and
shall not affect the construction hereof.

Section 1.10. Successors and Assigns.

     All covenants and agreements in this Indenture by each of the Issuers and the Guarantors shall
bind their respective successors and assigns, whether so expressed or not.

Section 1.11. Separability Clause.

     In case any provision in this Indenture or in the Securities or, if applicable, the Securities
Guarantee shall be invalid, illegal or unenforceable, the validity, legality and enforceability of
the remaining provisions shall not in any way be affected or impaired thereby.

Section 1.12. Benefits of Indenture.

     Nothing in this Indenture or in the Securities or, if applicable, the Securities Guarantee,
express or implied, shall give to any Person, other than the parties hereto and their successors
hereunder, the holders of Senior Debt and the Holders any benefit or any legal or equitable right,
remedy or claim under this Indenture.

Section 1.13. Force Majeure.

     In no event shall the Trustee be responsible or liable for any failure or delay in the
performance of its obligations hereunder arising out of or caused by, directly or indirectly,
forces beyond its control, including strikes, work stoppages, accidents, acts of war or terrorism,
civil or military disturbances,
nuclear or natural catastrophes or acts of God, and interruptions, loss or malfunctions of
utilities, communications or computer (software and hardware) services; it being understood that
the Trustee shall use reasonable efforts that are consistent with accepted practices in the banking
industry to resume performance as soon as practicable under the circumstances.

Section 1.14. Waiver of Jury Trial.

     EACH PARTY HERETO HEREBY WAIVES, TO THE FULLEST EXTENT PERMITTED BY APPLICABLE LAW, ANY RIGHT
IT MAY HAVE TO A TRIAL BY JURY IN RESPECT OF ANY LITIGATION DIRECTLY OR INDIRECTLY ARISING OUT OF,
UNDER OR IN CONNECTION WITH THIS INDENTURE.

Section 1.15. Governing Law.

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

Section 1.16. Legal Holidays.

     In any case where any Interest Payment Date, Redemption Date or other date of Maturity of any
Security shall not be a Business Day at any Place of Payment, then (notwithstanding any other
provision of this Indenture or of the Securities or, if applicable, the Securities Guarantee (other
than a provision of

13

 

the Securities of any series or, if applicable, the Securities Guarantee that
specifically states that such provision shall apply in lieu of this Section 1.16)) payment of
interest or principal and any premium need not be made at such Place of Payment on such date, but
may be made on the next succeeding Business Day at such Place of Payment with the same force and
effect as if made on the Interest Payment Date or Redemption Date, or at the Stated Maturity, and
if payment is so made, no interest shall accrue for the period from and after such Interest Payment
Date, Redemption Date or Stated Maturity, as the case may be.

Section 1.17. Securities in a Composite Currency, Currency Unit or Foreign Currency.

     Unless otherwise specified in a Board Resolution, Officer’s Certificate or indenture
supplemental hereto delivered pursuant to Section 3.1 of this Indenture with respect to a
particular series of Securities, whenever for purposes of this Indenture any action may be taken by
the Holders of a specified percentage in aggregate principal amount of Securities of all series or
all series affected by a particular action at the time Outstanding and, at such time, there are
Outstanding Securities of any affected series which are denominated in a coin, currency or
currencies other than Dollars (including, but not limited to, any composite currency, currency
units or Foreign Currency), then the principal amount of Securities of such series which shall be
deemed to be Outstanding for the purpose of taking such action shall be that amount of Dollars that
could be obtained for such amount at the Market Exchange Rate. For purposes of this Section 1.17,
the term “Market Exchange Rate” shall mean the noon Dollar buying rate in The City of
New York for cable transfers of such currency or currencies as published by the Federal
Reserve Bank of New York, as of the most recent available date. If such Market Exchange Rate is
not so available for any reason with respect to such currency, such quotation of the Federal
Reserve Bank of New York as of the most recent available date, or quotations or rates of exchange
from one or more major banks in The City of New York or in the country of issue of the currency in
question, which for purposes of Euros shall be Brussels, Belgium, or such other quotations or rates
of exchange as appropriate shall be used. The provisions of this paragraph shall apply in
determining the equivalent principal amount in respect of Securities of a series denominated in a
currency other than Dollars in connection with any action taken by Holders of Securities pursuant
to the terms of this Indenture.

     In no event will the Trustee have any duty or liability regarding the Market Exchange Rate or
any alternative determination provided for in the preceding paragraph.

Section 1.18. Payment in Required Currency; Judgment Currency.

     Each of the Issuers and the Guarantors agrees, to the fullest extent that it may effectively
do so under applicable law, that (a) if for the purpose of obtaining judgment in any court it is
necessary to convert the sum due in respect of the principal of or interest on the Securities of
any series (the “Required Currency”) into a currency in which a judgment will be rendered (the
“Judgment Currency”), the rate of exchange used shall be the rate at which in accordance with
normal banking procedures the Required Currency could be purchased in The City of New York with the
Judgment Currency on the day on which final unappealable judgment is entered, unless such day is
not a Banking Day, then, to the extent permitted by applicable law, the rate of exchange used shall
be the rate at which in accordance with normal banking procedures the Required Currency could be
purchased in The City of New York with the Judgment Currency on the Banking Day next preceding the
day on which final unappealable judgment is entered and (b) its obligations under this Indenture to
make payments in the Required Currency (i) shall not be discharged or satisfied by any tender, or
any recovery pursuant to any judgment (regardless of whether entered in accordance with subclause
(a)), in any currency other than the Required Currency, except to the extent that such tender or
recovery shall result in the actual receipt, by the payee, of the full amount of the Required
Currency expressed to be payable in respect of such payments, (ii) shall be enforceable as an
alternative or additional cause of action for the purpose of recovering in the Required

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Currency
the amount, if any, by which such actual receipt shall fall short of the full amount of the
Required Currency so expressed to be payable and (iii) shall not be affected by judgment being
obtained for any other sum due under this Indenture.

Section 1.19. Language of Notices, Etc.

     Any request, demand, authorization, direction, notice, consent, waiver or Act required or
permitted under this Indenture shall be in the English language, except that any published notice
may be in an official language of the country of publication.

Section 1.20. Incorporators, Unitholders, Stockholders, Partners, Officers and Directors of the
Issuers and the Guarantors Exempt from Individual Liability.

     No recourse under or upon any obligation, covenant or agreement of or contained in this
Indenture or of or contained in any Security or, if applicable, the Securities Guarantee, or for
any claim based thereon or otherwise in respect thereof, or because of the creation of any
indebtedness represented thereby, shall be had against any incorporator, unitholder, stockholder,
member, officer, manager, employee, partner or director, as such, past, present or future, of an
Issuer, any Guarantor or any successor Person, either directly or through an Issuer, any Guarantor
or any successor Person, whether by virtue of any constitution, statute or rule of law, or by the
enforcement of any assessment or penalty or otherwise, it being expressly understood that all such
liability is hereby expressly waived and released as a condition of, and as a part of the
consideration for, the execution of this Indenture and the issue of the Securities.

ARTICLE TWO

SECURITY FORMS

Section 2.1. Forms Generally.

     The Securities of each series and, if applicable, the notation thereon relating to the
Securities Guarantee, shall be in substantially the form set forth in this Article Two, or in such
other form or forms as shall be established by or pursuant to a Board Resolution or in one or more
indentures supplemental hereto, in each case with such appropriate insertions, omissions,
substitutions and other variations as are required or permitted by this Indenture, and may have
such letters, numbers or other marks of identification and such legends or endorsements placed
thereon as may be required to comply with the rules of any securities exchange or as may,
consistently herewith, be determined by the officers executing such Securities and, if applicable,
any notation of the Securities Guarantee, as evidenced by their execution thereof.

     The definitive Securities shall be printed, lithographed or engraved on steel engraved borders
or may be produced in any other manner, all as determined by the officers executing such
Securities, as evidenced by their execution thereof. If the form of Securities of any series is
established by action taken pursuant to a Board Resolution, a copy of an appropriate record of such
action shall be certified by an authorized officer or other authorized person on behalf of each of
the Issuers and delivered to the Trustee at or prior to the delivery of the Issuer Order
contemplated by Section 3.3 for the authentication and delivery of such Securities.

     The forms of Global Securities of any series shall have such provisions and legends as are
customary for Securities of such series in global form, including without limitation any legend
required by the Depositary for the Securities of such series.

15

 

Section 2.2. Form of Face of Security.

[If the Security is an Original Issue Discount Security and is not “publicly offered” within the
meaning of Treasury Regulations Section 1.1275-1(h), insert—FOR PURPOSES OF SECTION 1275 OF THE
UNITED STATES INTERNAL REVENUE CODE OF 1986, AS AMENDED, THIS SECURITY WAS ISSUED WITH ORIGINAL
ISSUE DISCOUNT, THE AMOUNT OF THE ORIGINAL ISSUE DISCOUNT IS [. . . . . . . .% OF ITS PRINCIPAL
AMOUNT] [$. . . . PER $1,000 OF PRINCIPAL AMOUNT], THE ISSUE DATE IS . . . .  ., 20. . . AND, THE
YIELD TO MATURITY IS . . . . . . . . , COMPOUNDED [SEMIANNUALLY OR OTHER PROPER PERIOD].

[In the alternative instead of providing such legend, insert the following legend—FOR PURPOSES OF
SECTION 1275 OF THE UNITED STATES INTERNAL REVENUE CODE OF 1986, AS AMENDED THIS SECURITY WAS
ISSUED WITH ORIGINAL ISSUE DISCOUNT, AND. . . . . . . [THE NAME OR TITLE AND ADDRESS OR TELEPHONE
NUMBER OF A REPRESENTATIVE OF THE COMPANY] WILL, BEGINNING NO LATER THAN 10 DAYS AFTER THE ISSUE
DATE, PROMPTLY MAKE AVAILABLE TO HOLDERS THE AMOUNT OF ORIGINAL ISSUE DISCOUNT, THE ISSUE DATE, THE
YIELD TO MATURITY AND ANY OTHER INFORMATION REQUIRED BY APPLICABLE TREASURY REGULATIONS.]

[Insert any other legend required by the Code or the regulations thereunder.]

[If a Global Security,—insert legend required by Section 2.4 of the Indenture] [If applicable,
insert —UNLESS THIS SECURITY IS PRESENTED BY AN AUTHORIZED REPRESENTATIVE OF THE DEPOSITORY TRUST
COMPANY, A NEW YORK CORPORATION, TO THE ISSUERS OR ITS AGENT FOR REGISTRATION OF TRANSFER, EXCHANGE
OR PAYMENT, AND ANY SECURITY ISSUED IS REGISTERED IN THE NAME OF CEDE & CO. OR SUCH OTHER NAME AS
IS REQUESTED BY AN AUTHORIZED REPRESENTATIVE OF THE DEPOSITORY TRUST COMPANY (AND ANY PAYMENT IS
MADE TO CEDE & CO. OR TO SUCH OTHER ENTITY AS IS REQUESTED BY AN AUTHORIZED REPRESENTATIVE OF THE
DEPOSITORY TRUST COMPANY), ANY TRANSFER, PLEDGE OR OTHER USE HEREOF FOR VALUE OR OTHERWISE BY OR TO
ANY PERSON IS WRONGFUL SINCE THE REGISTERED OWNER HEREOF, CEDE & CO., HAS AN INTEREST HEREIN.]

LEGACY RESERVES LP

LEGACY RESERVES FINANCE CORPORATION

[TITLE OF SECURITY]

			
	 	 	 
	No. . . . . .
	 	U.S. $. . . . . .

[CUSIP No. ]

LEGACY RESERVES LP, a limited partnership duly organized and existing under the laws of the State
of Delaware (herein called the “Company,” which term includes any successor or resulting Person
under the Indenture hereinafter referred to), and LEGACY RESERVES FINANCE CORPORATION, a [Delaware]
corporation (herein called “Finance Corp.,” which term includes any successor or resulting Person
under the Indenture hereinafter referred to, and together with the Company, the “Issuers”), for
value received, hereby promise to pay to .. . . . . . . . . . . . . . . . . . . . . . ., or
registered assigns, the principal sum of . . . .  . . . .  . . . . United States Dollars on  . . . .  . . . .  . . . . [If the Security is to
bear interest prior to Maturity, insert—, and to pay interest thereon from . . . . . . . . . . or
from the most recent Interest Payment Date to which interest has been paid or duly provided for,
semi-

16

 

annually
on . . . . . . and . . . . . . in each year, commencing . . . . . ., at the rate of . . . . % per annum, until the principal hereof is paid or made available for payment [if applicable,
insert—, and at the rate of ___% per annum on any overdue principal and premium and on any
installment of interest (to the extent that the payment of such interest shall be legally
enforceable)]. The interest so payable, and punctually paid or duly provided for, on any Interest
Payment Date will, as provided in such Indenture, be paid to the Person in whose name this Security
(or one or more Predecessor Securities) is registered at the close of business on the Regular
Record Date for such interest, which shall be the . . . . or . . . . (regardless of whether a
Business Day), as the case may be, next preceding such Interest Payment Date. Any such interest
not so punctually paid or duly provided for will forthwith cease to be payable to the Holder on
such Regular Record Date and may either be paid to the Person in whose name this Security (or one
or more

Predecessor Securities) is registered at the close of business on a Special Record Date for the
payment of such Defaulted Interest to be fixed by the Trustee, notice whereof shall be given to
Holders of Securities of this series not less than 10 days prior to such Special Record Date, or be
paid at any time in any other lawful manner not inconsistent with the requirements of any
securities exchange on which the Securities of this series may be listed, and upon such notice as
may be required by such exchange, all as more fully provided in said Indenture].

[If the Security is not to bear interest prior to Maturity, insert—The principal of this Security
shall not bear interest except in the case of a default in payment of principal upon acceleration,
upon redemption or at Stated Maturity and in such case the overdue principal of this Security shall
bear interest at the rate of . . . .% per annum (to the extent that the payment of such interest
shall be legally enforceable), which shall accrue from the date of such default in payment to the
date payment of such principal has been made or duly provided for. Interest on any overdue
principal shall be payable on demand. Any such interest on any overdue principal that is not so
paid on demand shall bear interest at the rate of . . . . % per annum (to the extent that the
payment of such interest shall be legally enforceable), which shall accrue from the date of such
demand for payment to the date payment of such interest has been made or duly provided for, and
such interest shall also be payable on demand.]

[If a Global Security, insert—Payment of the principal of (and premium, if any) and [if
applicable, insert—any such] interest on this Security will be made by transfer of immediately
available funds to a bank account in                      designated by the Holder in such coin or currency
of the United States of America as at the time of payment is legal tender for payment of public and
private debts [state other currency].]

[If a Definitive Security, insert—Payment of the principal of (and premium, if any) and [if
applicable, insert—any such] interest on this Security will be made at the office or agency of the
Issuers maintained for that purpose in                     , in such coin or currency of the United
States of America as at the time of payment is legal tender for payment of public and private
debts] [state other currency] [or subject to any laws or regulations applicable thereto and to the
right of the Issuers (as provided in the Indenture) to rescind the designation of any such Paying
Agent, at the [main] offices of                      in                     , or at such other offices or
agencies as the Issuers may designate, by [United States Dollar] [state other currency] check drawn
on, or transfer to a [United States Dollar] account maintained by the payee with, a bank in The
City of New York (so long as the applicable Paying Agency has received proper transfer instructions
in writing at least ___ days prior to the payment date)] [if applicable, insert—; provided,
however, that payment of interest may be made at the option of the Issuers by [United States
Dollar] [state other currency] check mailed to the addresses of the Persons entitled thereto as
such addresses shall appear in the Security Register] [or by transfer to a [United States Dollar]
[state other currency] account maintained by the payee with a bank in The City of New York [state
other Place of Payment] (so long as the applicable Paying Agent has received proper transfer
instructions in writing by the record date prior to the applicable Interest Payment Date)].]

17

 

Reference is hereby made to the further provisions of this Security set forth on the reverse
hereof, which further provisions shall for all purposes have the same effect as if set forth at
this place.

Unless the certificate of authentication hereon has been executed by the Trustee referred to on the
reverse hereof by manual signature, this Security shall not be entitled to any benefit under the
Indenture or be valid or obligatory for any purpose.

     IN WITNESS WHEREOF, each of the Issuers has caused this instrument to be duly executed.

     Dated:

	 	 	 	 	 	 	 

	 	 	LEGACY RESERVES LP	 	 
	 
	 	 	 	 	 	 
	 

	 	By:
	 	 
 

	 	 
	 
	 	 	 	 	 	 
	 	 	LEGACY RESERVES FINANCE CORPORATION	 	 
	 
	 	 	 	 	 	 
	 

	 	By:
	 	 
 

	 	 

Section 2.3. Form of Reverse of Security.

This Security is one of a duly authorized issue of subordinated securities of the Issuers (herein
called the “Securities”), issued and to be issued in one or more series under an Indenture, dated
as of                     , 20__ (herein called the “Indenture”), between the Issuers, the Guarantors, if any,
and [                    ], as Trustee (herein called the “Trustee,” which term includes any
successor trustee under the Indenture), to which Indenture and all indentures supplemental thereto
reference is hereby made for a statement of the respective rights, limitations of rights, duties
and immunities thereunder of the Issuers, the Guarantors, if any, the Trustee and the Holders of
the Securities and of the terms upon which the Securities are, and are to be, authenticated and
delivered. As provided in the Indenture, the Securities may be issued in one or more series, which
different series may be issued in various aggregate principal amounts, may mature at different
times, may bear interest, if any, at different rates, may be subject to different redemption
provisions, if any, may be subject to different sinking, purchase or analogous funds, if any, may
be subject to different covenants and Events of Default and may otherwise vary as in the Indenture
provided or permitted. This Security is one of the series designated on the face hereof [, limited
in aggregate principal amount to $. . . . . . . . . . ].

This security is the general, unsecured, subordinated obligation of the Issuers [if applicable,
insert—and is guaranteed pursuant to a guarantee (the “Securities Guarantee”) by [insert name of
each Guarantor] (the “Guarantors”). The Securities Guarantee is the general, unsecured,
subordinated obligation of each Guarantor].

[If applicable, insert—The Securities of this series are subject to redemption upon not less than
.... days’ notice by mail, [if applicable, insert, —(1) on . . . . . . . . . . . . . . in any year
commencing with the year . . . . and ending with the year . . . . through operation of the sinking
fund for this series at a Redemption Price equal to 100% of the principal amount, and (2) ] at any
time [on or after . . . . . . . . . ., 20. . . ], as a whole or in part, at the election of the
Issuers, at the following Redemption Prices (expressed as percentages of

18

 

 the principal amount): If
redeemed [on or before . . . . . . . . . . . . . . . , . . . . . %, and if redeemed] during the
12-month period beginning . . . . . .  of the years indicated,

	 	 	 	 	 	 	 
	Year	 	Redemption Price	 	Year	 	Redemption Price

and thereafter at a Redemption Price equal to . . . . . % of the principal amount, together in the
case of any such redemption [if applicable, insert—(whether through operation of the sinking fund
or otherwise)] with accrued interest to the Redemption Date, but interest installments the Stated
Maturity of which is on or prior to such Redemption Date will be payable to the Holders of such
Securities, or one or more Predecessor Securities, of record at the close of business on the
relevant record dates referred to on the face hereof, all as provided in the Indenture.]

[If applicable, insert—The Securities of this series are subject to redemption upon not less
than... nor more than ... days’ notice by mail, (1)

on . . . . . . . . in any year commencing with
the year . . . . and ending with the year . . . . through operation of the sinking fund for this
series at the Redemption Prices for redemption through operation of the sinking fund (expressed as
percentages of the principal amount) set forth in the table below,
and (2) at anytime [on or after
.. . . . . . . . . . ], as a whole or in part, at the election of the Issuers, at the Redemption
Prices for redemption otherwise than through operation of the sinking fund (expressed as
percentages of the principal amount) set forth in the table below: If redeemed during the 12-month
period beginning . . . . . . . . . . . . . . of the years indicated,

	 	 	 	 	 
	 	 	 	 	Redemption Price for
	 	 	Redemption Price For	 	Redemption Otherwise Than
	 	 	Redemption Through	 	Through Operation of the
	Year	 	Operation of the Sinking Fund	 	Sinking Fund

and thereafter at a Redemption Price equal to . . . . % of the principal amount, together in the
case of any such redemption (whether through operation of the sinking fund or otherwise) with
accrued interest to the Redemption Date, but interest installments the Stated Maturity of which is
on or prior to such Redemption Date will be payable to the Holders of such Securities, or one or
more Predecessor Securities, of record at the close of business on the relevant record dates
referred to on the face hereof, all as provided in the Indenture.]

[If applicable, insert—Notwithstanding the foregoing, the Issuers may not, prior to . . . . . . .
.. . ., redeem any Securities of this series as contemplated by [clause (2) of] the preceding
paragraph as a part of, or in anticipation of, any refunding operation by the application, directly
or indirectly, of moneys borrowed

19

 

having an interest cost to the Issuers (calculated in accordance
with generally accepted financial practice) of less than . . . .% per annum.]

[If applicable, insert—The sinking fund for this series provides for the redemption on . . . . . .
.. . . . . . in each year beginning with the 

year . . . . and ending with the year . . . . of [not
less than] $. . . . . . . . . . . . [ (“mandatory sinking fund”) and not more than $. . . . . . . .
.. . . . ] aggregate principal amount of Securities of this series. [Securities of this series
acquired or redeemed by the Issuers otherwise than through [mandatory] sinking fund payments may be
credited against subsequent [mandatory] sinking fund payments otherwise required to be made [If
applicable, insert— in the inverse order in which they become due].]

[If the Securities are subject to redemption in part of any kind, insert—In the event of
redemption of this Security in part only, a new Security or Securities of this series and of like
tenor for the unredeemed portion hereof will be issued in the name of the Holder hereof upon the
cancellation hereof.]

[If applicable, insert—The Securities of this series are not redeemable prior to Stated Maturity.]

[If the Security is not an Original Issue Discount Security,—If an Event of Default with respect
to Securities of this series shall occur and be continuing, the principal of the Securities of this
series may be declared due and payable in the manner and with the effect provided in the
Indenture.]

[If the Security is an Original Issue Discount Security,—If an Event of Default with respect to
Securities of this series shall occur and be continuing, an amount of principal of the Securities
of this series may be declared due and payable in the manner and with the effect provided in the
Indenture. Such amount shall be equal to —insert formula for determining the amount. Upon
payment (i) of the amount of principal so declared due and payable and (ii) of interest on any
overdue principal and overdue interest (in each case to the extent that the payment of such
interest shall be legally enforceable), all of the Issuers’ obligations in respect of the payment
of the principal of and interest, if any, on the Securities of this series shall terminate.]

The Indenture permits, with certain exceptions as therein provided, the amendment thereof and the
modification of the rights and obligations of the Issuers [If applicable, insert—and the
Guarantors] and the rights of the Holders of the Securities of each series to be affected under the
Indenture at any time by the Issuers [If applicable, insert—and the Guarantors] and the Trustee
with the consent of the Holders of a majority in aggregate principal amount of the Securities at
the time Outstanding of each series to be affected. The Indenture also contains provisions
permitting the Holders of specified percentages in aggregate principal amount of the Securities of
each series at the time Outstanding, on behalf of the Holders of all Securities of such series, to
waive compliance by the Issuers [If applicable, insert—and the Guarantors] with certain
provisions of the Indenture and certain past defaults under the Indenture and their consequences.
Any such consent or waiver by the Holder of this Security shall be conclusive and binding upon such
Holder and upon all future Holders of this Security and of any Security issued upon the
registration of transfer hereof or in exchange herefor or in lieu hereof, regardless of whether
notation of such consent or waiver is made upon this Security.

No reference herein to the Indenture and no provision of this Security or of the Indenture shall
alter or impair the obligation of the Issuers, which is absolute and unconditional, to pay the
principal of (and premium, if any) and interest on this Security at the times, place(s) and rate,
and in the coin or currency, herein prescribed.

[If a Global Security, insert—This Global Security or portion hereof may not be exchanged for
Definitive Securities of this series except in the limited circumstances provided in the Indenture.
The holders of

20

 

 beneficial interests in this Global Security will not be entitled to receive
physical delivery of Definitive Securities except as described in the Indenture and will not be
considered the Holders thereof for any purpose under the Indenture.]

[If a Definitive Security, insert—As provided in the Indenture and subject to certain limitations
therein set forth, the transfer of this Security is registerable in the Security Register, upon
surrender of this Security for registration of transfer at the office or agency of the Issuers in
[if applicable, insert—any place where the principal of and any premium and interest on this
Security are payable] [if applicable, insert—The City of New York [, or, subject to any laws or
regulations applicable thereto and to the right of the Issuers (limited as provided in the
Indenture) to rescind the designation of any such transfer agent, at the [main] offices of
                     in                      or at such other offices or agencies as the Issuers may
designate]], duly endorsed by, or accompanied by a written instrument of transfer in form
satisfactory to the Issuers and the Security Registrar duly executed by, the Holder hereof or such
Holder’s attorney duly authorized in writing, and thereupon one or more new Securities of this
series and of like tenor, of authorized denominations and for the same aggregate principal amount,
will be issued to the designated transferee or transferees.]

The Securities of this series are issuable only in registered form without coupons in denominations
of U.S. $. . . . . . . . and any integral multiple thereof. As provided in the Indenture and
subject to certain limitations therein set forth, Securities of this series are exchangeable for a
like aggregate principal amount of Securities of this series and of like tenor of a different
authorized denomination, as requested by the Holder surrendering the same.

No service charge shall be made for any such registration of transfer or exchange, but the Issuers
may require payment of a sum sufficient to cover any tax or other governmental charge payable in
connection therewith.

Prior to due presentment of this Security for registration of transfer, the Issuers, [If
applicable, insert—any Guarantor,] the Trustee and any agent of an Issuer [If applicable,
insert—, a Guarantor] or the Trustee may treat the Person in whose name this Security is
registered as the owner hereof for all purposes, regardless of whether this Security be overdue,
and none of the Issuers, [If applicable, insert—the Guarantors,] the Trustee nor any such agent
shall be affected by notice to the contrary.

This Security is subordinated in right of payment to Senior Debt [If applicable, insert-and the
Securities Guarantee is subordinated in right of payment to Guarantor Senior Debt], to the extent
and in the manner provided in the Indenture.

No recourse under or upon any obligation, covenant or agreement of or contained in the Indenture or
of or contained in any Security, [If applicable, insert—, or the Securities Guarantee,] or for any
claim based thereon or otherwise in respect thereof, or because of the creation of any indebtedness
represented thereby, shall be had against any director, officer, employee, incorporator, unitholder
or stockholder, member, manager or partner, as such, past, present or future, of an Issuer [If
applicable, insert—or any Guarantor] or of any successor Person, either directly or through an
Issuer [If applicable, insert—or any Guarantor] or any successor Person, whether by virtue of any
constitution, statute or rule of law, or by the enforcement of any assessment, penalty or
otherwise; it being expressly understood that all such liability is hereby expressly waived and
released by the acceptance hereof and as a condition of, and as part of the consideration for, the
Securities and the execution of the Indenture.

The Indenture provides that the Issuers [If applicable, insert—and the Guarantors] (a) will be
discharged from any and all obligations in respect of the Securities (except for certain
obligations described in the Indenture), or (b) need not comply with certain restrictive covenants
of the Indenture, in each case if an

21

 

 Issuer [If applicable, insert—or a Guarantor] deposits, in
trust, with the Trustee money or U.S. Government Obligations (or a combination thereof) which
through the payment of interest thereon and principal thereof in accordance with their terms will
provide money, in an amount sufficient to pay all the
principal of and interest on the Securities, but such money need not be segregated from other funds
except to the extent required by law.

Except as otherwise defined herein, all terms used in this Security which are defined in the
Indenture shall have the meanings assigned to them in the Indenture.

[If a Definitive Security, insert as a separate page—

FOR VALUE RECEIVED, the undersigned hereby sell(s), assign(s) and transfer(s) unto

	 	 	 

	  

(Please
Print or Type Name and Address of Assignee)

	 	 

the within instrument of [                                        ] and does hereby irrevocably constitute and appoint
                                         Attorney to transfer said instrument on the books of the within-named Issuers,
with full power of substitution in the premises.

Please Insert Social Security or Other Identifying Number of Assignee:

	 	 	 	 	 	 	 	 	 

	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 
	Dated:
	 	 	 	 	 	 	 	 
	 

	 	 

	 	 	 	 

(Signature)
	 	 

NOTICE: The signature to this assignment must correspond with the name as written upon the face of
the within instrument in every particular, without alteration or enlargement or any change
whatsoever.]

[If a Security to which Article Fourteen has been made applicable, insert the following Form of
Notation on such Security relating to the Securities Guarantee—

Each of the Guarantors (which term includes any successor Person in such capacity under the
Indenture), has fully, unconditionally and absolutely guaranteed, to the extent set forth in the
Indenture and subject to the provisions in the Indenture, the due and punctual payment of the
principal of, and premium, if any, and interest on the Securities of this series and all other
amounts due and payable under the Indenture and the Securities of this series by the Issuers.

The obligations of the Guarantors to the Holders of Securities of this series and to the Trustee
pursuant to the Securities Guarantee and the Indenture are expressly set forth in Article Fourteen
of the Indenture and reference is hereby made to the Indenture for the precise terms of the
Securities Guarantee.

	 	 	 	 	 	 	 

	 	 	Guarantors:	 	 
	 
	 	 	 	 	 	 
	 	 	[NAME OF EACH GUARANTOR]	 	 
	 
	 	 	 	 	 	 
	 

	 	By:
	 	 
	 
	 
	 	 	 	 	 	 
	 

	 	 	 	 
	  ]	 

22

 

Section 2.4. Global Securities.

     Every Global Security authenticated and delivered hereunder shall bear a legend in
substantially the following form:

THIS SECURITY IS A GLOBAL SECURITY WITHIN THE MEANING OF THE INDENTURE HEREINAFTER
REFERRED TO AND IS REGISTERED IN THE NAME OF A DEPOSITARY OR A NOMINEE THEREOF.
THIS SECURITY MAY NOT BE TRANSFERRED TO, OR REGISTERED OR EXCHANGED FOR SECURITIES
REGISTERED IN THE NAME OF, ANY PERSON OTHER THAN THE DEPOSITARY OR A NOMINEE THEREOF
AND NO SUCH TRANSFER MAY BE REGISTERED, EXCEPT IN THE LIMITED CIRCUMSTANCES
DESCRIBED IN THE INDENTURE.

EVERY SECURITY AUTHENTICATED AND DELIVERED UPON REGISTRATION OF TRANSFER OF, OR IN
EXCHANGE FOR OR IN LIEU OF, THIS SECURITY SHALL BE A GLOBAL SECURITY SUBJECT TO THE
FOREGOING, EXCEPT IN SUCH LIMITED CIRCUMSTANCES.

     If Securities of a series are issuable in whole or in part in the form of one or more Global
Securities, as specified as contemplated by Section 3.1, then, notwithstanding clause (i) of
Section 3.1 and the provisions of Section 3.2, any Global Security shall represent such of the
Outstanding Securities of such series as shall be specified therein and may provide that it shall
represent the aggregate amount of Outstanding Securities from time to time endorsed thereon and
that the aggregate amount of Outstanding Securities represented thereby may from time to time be
reduced or increased, as the case may be, to reflect exchanges. Any endorsement of a Global
Security to reflect the amount, or any reduction or increase in the amount, of Outstanding
Securities represented thereby shall be made in such manner and upon instructions given by such
Person or Persons as shall be specified therein or in an Issuer Order. Subject to the provisions
of Section 3.3, Section 3.4 and Section 3.5, the Trustee shall deliver and redeliver any Global
Security in the manner and upon instructions given by the Person or Persons specified therein or in
the applicable Issuer Order. Any instructions by the Issuers with respect to endorsement or
delivery or redelivery of a Global Security shall be in an Issuer Order.

     The provisions of the last sentence of Section 3.3 shall apply to any Security represented by
a Global Security if such Security was never issued and sold by the Issuers and the Issuers deliver
to the Trustee the Global Security together with an Issuer Order with regard to the reduction or
increase, as the case may be, in the principal amount of Securities represented thereby, together
with the written statement contemplated by the last sentence of Section 3.3.

Section 2.5. Form of Trustee’s Certificate of Authentication.

     The Trustee’s certificate(s) of authentication shall be in substantially the following form:

This is one of the Securities of the series designated [insert title of applicable
series] referred to in the within-mentioned Indenture.

	 	 	 	 	 	 	 

	 	 	[                                        ], as Trustee	 	 
	 
	 	 	 	 	 	 
	 

	 	By:
	 	 
 

	 	 
	 

	 	 	 	Authorized Officer	 	 

23

 

ARTICLE THREE

THE SECURITIES

Section 3.1. Amount Unlimited; Issuable in Series.

     The aggregate principal amount of Securities that may be authenticated and delivered under
this Indenture is unlimited.

     The Securities may be issued in one or more series. There shall be established in or pursuant
to a Board Resolution, and set forth, or determined in the manner provided, in an Officer’s
Certificate, or established in one or more indentures supplemental hereto, prior to the issuance of
Securities of any series:

     (a) the title of the Securities of the series (which shall distinguish the Securities
of the series from all other Securities and which may be part of a series of Securities
previously issued);

     (b) any limit upon the aggregate principal amount of the Securities of the series that
may be authenticated and delivered under this Indenture (except for Securities authenticated
and delivered upon registration of transfer of, or in exchange for, or in lieu of, other
Securities of the series pursuant to Section 3.4, Section 3.5, Section 3.6, Section 9.6 or
Section 11.7 and except for any Securities which, pursuant to Section 3.3, are deemed never
to have been authenticated and delivered hereunder);

     (c) the Person to whom any interest on a Security of the series shall be payable, if
other than the Person in whose name that Security (or one or more Predecessor Securities) is
registered at the close of business on the Regular Record Date for such interest;

     (d) the date or dates on which the principal of the Securities of the series is payable
or the method of determination thereof;

     (e) the rate or rates at which the Securities of the series shall bear interest, if
any, or the formula, method or provision pursuant to which such rate or rates are
determined, the date or dates from which such interest shall accrue or the method of
determination thereof, the Interest Payment Dates on which such interest shall be payable
and the Regular Record Date for the interest payable on any Interest Payment Date;

     (f) the place or places where, subject to the provisions of Section 10.2, the principal
of and any premium and interest on Securities of the series shall be payable, Securities of
the series may be surrendered for registration of transfer, Securities of the series may be
surrendered for exchange, and notices and demands to or upon the Issuers in respect of the
Securities of the series and this Indenture may be served;

     (g) the period or periods within which, the price or prices at which and the terms and
conditions upon which Securities of the series may be redeemed, in whole or in part, at the
option of the Issuers;

     (h) the obligation, if any, of the Issuers to redeem or purchase Securities of the
series pursuant to any sinking fund or analogous provisions or at the option of a Holder
thereof and the
period or periods within which, the price or prices at which and the terms and
conditions upon

24

 

which Securities of the series shall be redeemed or purchased, in whole or
in part, pursuant to such obligation;

     (i) if other than denominations of $1,000 and any integral multiple thereof, the
denominations in which Securities of the series shall be issuable;

     (j) whether payment of principal of and premium, if any, and interest, if any, on the
Securities of the series shall be without deduction for taxes, assessments or governmental
charges paid by Holders of the series;

     (k) if other than the principal amount thereof, the portion of the principal amount of
Securities of the series which shall be payable upon declaration of acceleration of the
Maturity thereof pursuant to Section 5.2;

     (l) if the amount of payments of principal of and any premium or interest on the
Securities of the series may be determined with reference to an index, the manner in which
such amounts shall be determined;

     (m) if and as applicable, that the Securities of the series shall be issuable in whole
or in part in the form of one or more Global Securities and, in such case, the Depositary or
Depositaries for such Global Security or Global Securities and any circumstances other than
those set forth in Section 3.5 in which any such Global Security may be transferred to, and
registered and exchanged for Securities registered in the name of, a Person other than the
Depositary for such Global Security or a nominee thereof and in which any such transfer may
be registered;

     (n) any deletions from, modifications of or additions to the Events of Default set
forth in Section 5.1 or the covenants of the Issuers set forth in Article Ten with respect
to the Securities of such series;

     (o) whether and under what circumstances the Issuers will pay additional amounts on the
Securities of the series held by a Person who is not a U.S. Person in respect of any tax,
assessment or governmental charge withheld or deducted and, if so, whether the Issuers will
have the option to redeem the Securities of the series rather than pay such additional
amounts;

     (p) if the Securities of the series are to be issuable in definitive form (whether upon
original issue or upon exchange of a temporary Security of such series) only upon receipt of
certain certificates or other documents or satisfaction of other conditions, the form and
terms of such certificates, documents or conditions;

     (q) if the Securities of the series are to be convertible into or exchangeable for any
other security or property of the Issuers, including, without limitation, securities of
another Person held by the Issuers or their Affiliates and, if so, the terms thereof;

     (r) if other than as provided in Section 13.2 and Section 13.3, the means of Legal
Defeasance or Covenant Defeasance as may be specified for the Securities of the series;

     (s) if other than the Trustee, the identity of the initial Security Registrar and any
initial Paying Agent;

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     (t) whether the Securities of the series will be guaranteed pursuant to the Securities
Guarantee set forth in Article Fourteen, any modifications to the terms of Article Fourteen
applicable to the Securities of such series and the applicability of any other guarantees;
and

     (u) any other terms of the series (which terms shall not be inconsistent with the
provisions of this Indenture).

     All Securities of any one series shall be substantially identical except as to denomination
and except as may otherwise be provided in or pursuant to the Board Resolution referred to above
and (subject to Section 3.3) set forth, or determined in the manner provided, in the Officer’s
Certificate referred to above or in any such indenture supplemental hereto.

     All Securities of any one series need not be issued at the same time and, unless otherwise
provided, a series may be reopened, without the consent of the Holders, for increases in the
aggregate principal amount of such series of Securities and issuances of additional Securities of
such series or for the establishment of additional terms with respect to the Securities of such
series.

     If any of the terms of the series are established by action taken by or pursuant to a Board
Resolution, a copy of an appropriate record of such action shall be certified by an authorized
officer or other authorized person on behalf of each of the Issuers and, if applicable, the
Guarantors and delivered to the Trustee at or prior to the delivery of the Officer’s Certificate
setting forth, or providing the manner for determining, the terms of the series.

     With respect to Securities of a series subject to a Periodic Offering, such Board Resolution
or Officer’s Certificate may provide general terms for Securities of such series and provide either
that the specific terms of particular Securities of such series shall be specified in an Issuer
Order or that such terms shall be determined by the Issuers and, if applicable, the Guarantors or
one or more agents thereof designated in an Officer’s Certificate, in accordance with an Issuer
Order.

Section 3.2. Denominations.

     The Securities of each series shall be issuable in registered form without coupons in such
denominations as shall be specified as contemplated by Section 3.1. In the absence of any such
provisions with respect to the Securities of any series, the Securities of such series shall be
issuable in denominations of $1,000 and any integral multiple thereof.

Section 3.3. Execution, Authentication, Delivery and Dating.

     The Securities shall be executed on behalf of each of the Issuers by its Chairman of the
Board, its Chief Executive Officer, its President, its Chief Financial Officer or any of its Vice
Presidents and need not be attested. The signature of any of these officers on the Securities may
be manual or facsimile. Any notation of Securities Guarantee endorsed on the Securities shall be
executed on behalf of the applicable Guarantor by its Chairman of the Board, its Chief Executive
Officer, its President, its Chief Financial Officer or any of its Vice Presidents and need not be
attested. The signature of any of these officers on any notation of the Securities Guarantee may
be manual or facsimile.

     Securities and any notation of a Securities Guarantee bearing the manual or facsimile
signatures of individuals who were at any time the proper officers of the Company, Finance Corp. or
a Guarantor, as the case may be, shall bind the Company, Finance Corp. or such Guarantor, as the
case may be, notwithstanding that such individuals or any of them have ceased to hold such offices
prior to the authentication and delivery of such Securities or did not hold such offices at the
date of such Securities.

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     At any time and from time to time after the execution and delivery of this Indenture, the
Issuers may deliver Securities of any series executed by the Issuers to the Trustee for
authentication, together with an Issuer Order for the authentication and delivery of such
Securities, and the Trustee in accordance with the Issuer Order shall authenticate and deliver such
Securities; provided, however, that in the case of Securities offered in a Periodic Offering, the
Trustee shall authenticate and deliver such Securities from time to time in accordance with such
other procedures (including, without limitation, the receipt by the Trustee of written instructions
from the Issuers) acceptable to the Trustee as may be specified by or pursuant to an Issuer Order
delivered to the Trustee prior to the time of the first authentication of Securities of such
series. If the forms or terms of the Securities of the series have been established in or pursuant
to one or more Board Resolutions as permitted by Section 2.1 and Section 3.1, in authenticating
such Securities, and accepting the additional responsibilities under this Indenture in relation to
such Securities, the Trustee shall be fully protected in relying on such Board Resolution and shall
be entitled to receive such documents as it may reasonably request. The Trustee shall also be
entitled to receive, and (subject to Section 6.1) shall be fully protected in relying upon, an
Officer’s Certificate pursuant to Section 3.1 and complying with Section 1.3 and an Opinion of
Counsel complying with Section 1.3 stating:

     (a) if the form or forms of such Securities has been established by or pursuant to a
Board Resolution as permitted by Section 2.1, that each such form has been established in
conformity with the provisions of this Indenture;

     (b) if the terms of such Securities have been, or in the case of Securities of a series
offered in a Periodic Offering will be, established by or pursuant to a Board Resolution as
permitted by Section 3.1, that such terms have been, or in the case of Securities of a
series offered in a Periodic Offering will be, established in conformity with the provisions
of this Indenture, subject, in the case of Securities of a series offered in a Periodic
Offering, to any conditions specified in such Opinion of Counsel; and

     (c) that such Securities when authenticated and delivered by the Trustee and issued by
the Issuers in the manner and subject to any conditions and assumptions specified in such
Opinion of Counsel, will constitute valid and legally binding obligations of the Issuers
and, if applicable, the Subsidiary Guarantee will constitute valid and legally binding
obligations of the Guarantors, enforceable in accordance with their respective terms,
subject to the following limitations: (i) bankruptcy, insolvency, moratorium,
reorganization, liquidation, fraudulent conveyance or transfer and other similar laws of
general applicability relating to or affecting the enforcement of creditors’ rights, or to
general equity principles, (ii) the availability of equitable remedies being subject to the
discretion of the court to which application therefor is made; and (iii) such other usual
and customary matters as shall be specified in such Opinion of Counsel.

The Trustee shall not be required to authenticate such Securities if the issue of such Securities
pursuant to this Indenture will affect the Trustee’s own rights, duties or immunities under the
Securities and this Indenture or otherwise in a manner which is not reasonably acceptable to the
Trustee.

     Notwithstanding the provisions of Section 3.1 and of the preceding paragraph, if all
Securities of a series are not to be originally issued at one time, it shall not be necessary to
deliver the Officer’s
Certificate otherwise required pursuant to Section 3.1 or the Issuer Order and Opinion of
Counsel otherwise required pursuant to such preceding paragraph at or prior to the time of
authentication of each Security of such series if such documents are delivered at or prior to the
authentication upon original issuance of the first Security of such series to be issued.

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     With respect to Securities of a series offered in a Periodic Offering, the Trustee may rely,
as to the authorization by the Issuers of any of such Securities, on the form or forms and terms
thereof and the legality, validity, binding effect and enforceability thereof, upon the Opinion of
Counsel and the other documents delivered pursuant to Section 2.1 and Section 3.1 and this Section,
as applicable, in connection with the first authentication of Securities of such series.

     Each Security shall be dated the date of its authentication.

     No Security nor any related Securities Guarantee shall be entitled to any benefit under this
Indenture or be valid or obligatory for any purpose unless there appears on such Security a
certificate of authentication substantially in the form provided for herein executed by the Trustee
by manual signature of an authorized officer, and such certificate upon any Security shall be
conclusive evidence, and the only evidence, that such Security has been duly authenticated and
delivered hereunder and is entitled to the benefits of this Indenture. Notwithstanding the
foregoing, if any Security shall have been authenticated and delivered hereunder but never issued
and sold by the Issuers, and the Issuers shall deliver such Security to the Trustee for
cancellation as provided in Section 3.9, for all purposes of this Indenture such Security shall be
deemed never to have been authenticated and delivered hereunder and shall never be entitled to the
benefits of this Indenture.

Section 3.4. Temporary Securities.

     Pending the preparation of Definitive Securities of any series, the Issuers may execute, and
upon Issuer Order the Trustee shall authenticate and deliver, temporary Securities which are
printed, lithographed, typewritten, mimeographed or otherwise produced, in any authorized
denomination, substantially of the tenor of the Definitive Securities in lieu of which they are
issued and with such appropriate insertions, omissions, substitutions and other variations as the
officers executing such Securities may determine, as evidenced by their execution of such
Securities.

     If temporary Securities of any series are issued, the Issuers will cause Definitive Securities
of that series to be prepared without unreasonable delay. After the preparation of Definitive
Securities of such series, the temporary Securities of such series shall be exchangeable for
Definitive Securities of such series upon surrender of the temporary Securities of such series at
the office or agency of the Issuers in a Place of Payment for that series, without charge to the
Holder. Upon surrender for cancellation of any one or more temporary Securities of any series the
Issuers shall execute and the Trustee shall authenticate and deliver in exchange therefor a like
principal amount of Definitive Securities of the same series and tenor of authorized denominations.
Until so exchanged the temporary Securities of any series shall in all respects be entitled to the
same benefits under this Indenture as Definitive Securities of such series.

Section 3.5. Registration, Registration of Transfer and Exchange.

     The Issuers shall cause to be kept at the office or agency of the Issuers in a Place of
Payment required by Section 10.2 a register (the register maintained in such office being herein
sometimes referred
to as the “Security Register”) in which, subject to such reasonable regulations as the Issuers
may prescribe, the Issuers shall provide for the registration of Securities and of transfers of
Securities. The Trustee is hereby appointed as the initial “Security Registrar” for the purpose of
registering Securities and transfers of Securities as herein provided, and its Corporate Trust
Office, which, at the date hereof, is located at [                                        ], is the initial office or
agency where the Securities Register will be maintained. The Issuers may at any time replace such
Security Registrar, change such office or agency or act as its own Security Registrar. The Issuers
will give prompt written notice to the Trustee of any change of the Security Registrar or of the
location of such office or agency.

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     Upon surrender for registration of transfer of any Security of any series at the office or
agency maintained pursuant to Section 10.2 for such purpose, the Issuers and, if applicable, the
Guarantors shall execute, and the Trustee shall authenticate and deliver, in the name of the
designated transferee or transferees, one or more new Securities, with a notation of the Securities
Guarantee, if applicable, executed by the Guarantors, of the same series and tenor, of any
authorized denominations and of a like tenor and aggregate principal amount.

     At the option of the Holder, Securities of any series (except a Global Security) may be
exchanged for other Securities of the same series and tenor, of any authorized denominations and of
a like aggregate principal amount, upon surrender of the Securities to be exchanged at such office
or agency. Whenever any Securities are so surrendered for exchange, the Issuers and, if
applicable, the Guarantors shall execute and the Trustee shall authenticate and deliver, the
Securities, with a notation of the Securities Guarantee, if applicable, executed by the Guarantors,
which the Holder making the exchange is entitled to receive.

     All Securities issued upon any registration of transfer or exchange of Securities shall be the
valid obligations of the Issuers and, if applicable, the Guarantors evidencing the same debt, and
entitled to the same benefits under this Indenture, as the Securities surrendered upon such
registration of transfer or exchange.

     Every Security presented or surrendered for registration of transfer or for exchange shall (if
so required by the Issuers or the Trustee) be duly endorsed, or be accompanied by a written
instrument of transfer in form satisfactory to the Issuers and the Security Registrar duly
executed, by the Holder thereof or such Holder’s attorney duly authorized in writing.

     No service charge shall be made for any registration of transfer or exchange of Securities,
but the Issuers may require payment of a sum sufficient to cover any tax or other governmental
charge that may be imposed in connection with any registration of transfer or exchange of
Securities, other than exchanges pursuant to Section 3.4, Section 9.6 or Section 11.7 not involving
any transfer.

     The Issuers shall not be required (a) to issue, register the transfer of or exchange
Securities of any series during a period beginning at the opening of business 15 days before the
day of the mailing of a notice of redemption of Securities of that series selected for redemption
under Section 11.3 and ending at the close of business on the day of such mailing, or (b) to
register the transfer of or exchange any Security so selected for redemption in whole or in part,
except the unredeemed portion of any Security being redeemed in part.

     Notwithstanding any other provisions of this Indenture and except as otherwise specified with
respect to any particular series of Securities as contemplated by Section 3.1, a Global Security
representing all or a portion of the Securities of a series may not be transferred, except as a
whole by the Depositary for such series to a nominee of such Depositary or by a nominee of such
Depositary to such Depositary or another nominee of such Depositary or by such Depositary or any
such nominee to a successor Depositary for such series or a nominee of such successor Depositary.
Every Security
authenticated and delivered upon registration of, transfer of, or in exchange for or in lieu
of, a Global Security shall be a Global Security except as provided in the two paragraphs
immediately following.

     If at any time the Depositary for any Securities of a series represented by one or more Global
Securities notifies the Issuers that it is unwilling or unable to continue as Depositary for such
Securities or if at any time the Depositary for such Securities shall no longer be eligible to
continue as Depositary under Section 3.1 or ceases to be a clearing agency registered under the
Exchange Act, the Issuers shall appoint a successor Depositary with respect to such Securities. If
a successor Depositary for such Securities is not appointed by the Issuers within 90 days after the
Issuer receives such notice or becomes

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aware of such ineligibility, the Issuers’ election pursuant
to Section 3.1 that such Securities be represented by one or more Global Securities shall no longer
be effective and the Issuers and, if applicable, the Guarantors will execute and the Trustee, upon
receipt of an Issuer Order for the authentication and delivery of Definitive Securities of such
series, will authenticate and deliver, Securities, with a notation of the Securities Guarantee, if
applicable, executed by the Guarantors, of such series in definitive registered form without
coupons, in any authorized denominations, in an aggregate principal amount equal to the principal
amount of the Global Security or Securities representing such Securities in exchange for such
Global Security or Securities registered in the names of such Persons as the Depositary shall
direct.

     If specified by the Issuers pursuant to Section 3.1 with respect to Securities represented by
a Global Security, the Depositary for such Global Security may surrender such Global Security in
exchange in whole or in part for Securities of the same series and tenor in definitive registered
form on such terms as are acceptable to the Issuers , the Trustee and such Depositary. Thereupon,
the Issuers and, if applicable, the Guarantors shall execute, and the Trustee, upon receipt of an
Issuer Order for the authentication and delivery of Securities in definitive registered form, shall
authenticate and deliver, without service charge:

     (i) to the Person specified by such Depositary a new Security or Securities, with a
notation of the Securities Guarantee, if applicable, executed by the Guarantors, of the same
series and tenor, of any authorized denominations as requested by such Person, in an
aggregate principal amount equal to and in exchange for such Person’s beneficial interest in
the Global Security; and

     (ii) to such Depositary a new Global Security, with a notation of the Securities
Guarantee, if applicable, executed by the Guarantors, in a denomination equal to the
difference, if any, between the principal amount of the surrendered Global Security and the
aggregate principal amount of Securities authenticated and delivered pursuant to clause (i)
above.

     Every Person who takes or holds any beneficial interest in a Global Security agrees that:

     (A) the Issuers, the Guarantors (if applicable) and the Trustee may deal with the
Depositary as sole owner of the Global Security and as the authorized representative of such
Person;

     (B) such Person’s rights in the Global Security shall be exercised only through the
Depositary and shall be limited to those established by law and agreement between such
Person and the Depositary and/or direct and indirect participants of the Depositary;

     (C) the Depositary and its participants make book-entry transfers of beneficial
ownership among, and receive and transmit distributions of the principal of (and premium, if
any) and interest on the Global Securities to, such Persons in accordance with their own
procedures; and

     (D) none of the Issuers, the Guarantors (if applicable), the Trustee, nor any agent of
any of them will have any responsibility or liability for any aspect of the records relating
to or payments made on account of beneficial ownership interests of a Global Security or for
maintaining, supervising or reviewing any records relating to such beneficial ownership
interests.

Section 3.6. Mutilated, Destroyed, Lost and Stolen Securities.

     If any mutilated Security is surrendered to the Trustee, together with such security or
indemnity as may be required by the Issuers, the Guarantors (if applicable) and the Trustee to save
each of them and

30

 

any agent of any of them harmless, then, in the absence of notice to the Issuers
or the Trustee that such Security has been acquired by a protected purchaser, the Issuers and, if
applicable, the Guarantors shall execute and the Trustee shall authenticate and deliver in exchange
therefor a new Security, with a notation of the Securities Guarantee, if applicable, executed by
the Guarantors, of the same series and of like tenor and principal amount and bearing a number not
contemporaneously outstanding.

     If there shall be delivered to the Issuers, the Guarantors (if applicable) and the Trustee (a)
evidence to their satisfaction of the destruction, loss or theft of any Security and (b) such
security or indemnity as may be required by them to save each of them and any agent of any of them
harmless, then, in the absence of notice to the Issuers or the Trustee that such Security has been
acquired by a protected purchaser, the Issuers and, if applicable, the Guarantors shall execute and
the Trustee shall authenticate and deliver, in lieu of any such destroyed, lost or stolen Security,
a new Security, with a notation of the Securities Guarantee, if applicable, executed by the
Guarantors, of the same series and of like tenor and principal amount and bearing a number not
contemporaneously outstanding.

     In case any such mutilated, destroyed, lost or stolen Security has become or is about to
become due and payable, the Issuers in their discretion may, instead of issuing a new Security, pay
such Security (without surrender thereof save in the case of a mutilated Security).

     Upon the issuance of any new Security under this Section, the Issuers may require the payment
of a sum sufficient to cover any tax or other governmental charge that may be imposed in relation
thereto and any other expenses (including the fees and expenses of the Trustee) connected
therewith.

     Every new Security of any series issued pursuant to this Section in lieu of any destroyed,
lost or stolen Security shall constitute an original additional contractual obligation of the
Issuers and, if applicable, the Guarantors, regardless of whether the destroyed, lost or stolen
Security shall be at any time enforceable by anyone, and shall be entitled to all the benefits of
this Indenture equally and proportionately with any and all other Securities of that series duly
issued hereunder.

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

Section 3.7. Payment of Interest; Interest Rights Preserved.

     Except as otherwise provided as contemplated by Section 3.1 with respect to any series of
Securities, interest on any Security that is payable, and is punctually paid or duly provided for,
on any
Interest Payment Date shall be paid to the Person in whose name that Security (or one or more
Predecessor Securities) is registered at the close of business on the Regular Record Date for such
interest.

     Any interest on any Security of any series that is payable, but is not punctually paid or duly
provided for, on any Interest Payment Date (herein called “Defaulted Interest”) shall forthwith
cease to be payable to the Holder on the relevant Regular Record Date by virtue of having been such
Holder, and such Defaulted Interest may be paid by the Issuers, at their election in each case, as
provided in clause (a) or (b) below:

     (a) The Issuers may elect to make payment of any Defaulted Interest to the Persons in
whose names the Securities of such series (or their respective Predecessor Securities) are
registered at the close of business on a Special Record Date for the payment of such
Defaulted Interest, which shall be fixed in the following manner. The Issuers shall notify
the Trustee in writing of the amount of Defaulted Interest proposed to be paid on each
Security of such series

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and the date of the proposed payment, and at the same time the
Issuers shall deposit with the Trustee an amount of money equal to the aggregate amount
proposed to be paid in respect of such Defaulted Interest or shall make arrangements
satisfactory to the Trustee for such deposit prior to the date of the proposed payment, such
money when deposited to be held in trust for the benefit of the Persons entitled to such
Defaulted Interest as in this clause provided. Thereupon, the Trustee shall fix a Special
Record Date for the payment of such Defaulted Interest which shall be not more than 15 days
and not less than 10 days prior to the date of the proposed payment and not less than 10
days after the receipt by the Trustee of the notice of the proposed payment. The Trustee
shall promptly notify the Issuers of such Special Record Date and, in the name and at the
expense of the Issuers, shall cause notice of the proposed payment of such Defaulted
Interest and the Special Record Date therefor to be mailed, first-class postage prepaid, to
each Holder of Securities of such series at such Holder’s address as it appears in the
Security Register, not less than 10 days prior to such Special Record Date. Notice of the
proposed payment of such Defaulted Interest and the Special Record Date therefor having been
so mailed, such Defaulted Interest shall be paid to the Persons in whose names the
Securities of such series (or their respective Predecessor Securities) are registered at the
close of business on such Special Record Date and shall no longer be payable pursuant to the
following clause (b).

     (b) The Issuers may make payment of any Defaulted Interest on the Securities of any
series in any other lawful manner not inconsistent with the requirements of any securities
exchange on which such Securities may be listed, and upon such notice as may be required by
such exchange, if, after notice given by the Issuers to the Trustee of the proposed payment
pursuant to this clause, such manner of payment shall be deemed practicable by the Trustee.

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

Section 3.8. Persons Deemed Owners.

     Except as otherwise provided as contemplated by Section 3.1 with respect to any series of
Securities, prior to due presentment of a Security for registration of transfer, the Issuers, the
Trustee and, if applicable, the Guarantors and any agent thereof may treat the Person in whose name
such Security is registered as the owner of such Security for the purpose of receiving payment of
principal of, and any premium and (subject to Section 3.5 and Section 3.7) any interest on, such
Security and for all other
purposes whatsoever, regardless of whether such Security be overdue, and none of the Issuers,
the Trustee nor, if applicable, the Guarantors nor any agent of any of them shall be affected by
notice to the contrary.

     No holder of any beneficial interest in any Global Security held on its behalf by a Depositary
shall have any rights under this Indenture with respect to such Global Security, and such
Depositary may be treated by the Issuers, the Trustee, and, if applicable, the Guarantors and any
agent thereof as the owner of such Global Security for all purposes whatsoever.

Section 3.9. Cancellation.

     All Securities surrendered for payment, redemption, purchase, registration of transfer or
exchange or for credit against any sinking fund payment shall, if surrendered to any Person other
than the Trustee, be delivered to the Trustee and shall be promptly canceled by it. The Issuers
may at any time deliver to the Trustee for cancellation any Securities previously authenticated and
delivered hereunder which the Issuers may have acquired in any manner whatsoever, and may deliver
to the Trustee (or to any other Person for delivery to the Trustee) for cancellation any Securities
previously authenticated hereunder

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which the Issuers have not issued and sold, and all Securities
so delivered shall be promptly canceled by the Trustee. No Securities shall be authenticated in
lieu of or in exchange for any Securities canceled as provided in this Section, except as expressly
permitted by this Indenture. All canceled Securities held by the Trustee shall be disposed of in
accordance with its customary practices, and the Trustee shall thereafter deliver to the Issuers a
certificate with respect to such disposition from time to time upon written request.

Section 3.10. Computation of Interest.

     Except as otherwise specified as contemplated by Section 3.1 for Securities of any series,
interest on the Securities of each series shall be computed on the basis of a 360-day year
comprised of twelve 30-day months.

Section 3.11. CUSIP or CINS Numbers.

     The Issuers in issuing the Securities may use CUSIP or CINS numbers (if then generally in use,
and in addition to the other identification numbers printed on the Securities), and, if so, the
Trustee shall use CUSIP or CINS numbers in notices of redemption as a convenience to Holders;
provided, however, that any such notice may state that no representation is made as to the
correctness of such CUSIP or CINS numbers either as printed on the Securities or as contained in
any notice of a redemption and that reliance may be placed only on the other identification numbers
printed on the Securities, and any such redemption shall not be affected by any defect in or
omission of such CUSIP or CINS numbers.

ARTICLE FOUR

SATISFACTION AND DISCHARGE

Section 4.1. Satisfaction and Discharge of Indenture.

     This Indenture shall cease to be of further effect and will be discharged with respect to the
Securities of any series (except as to any surviving rights of registration of transfer or exchange
of Securities and certain rights of the Trustee, in each case, herein expressly provided for), and
the Trustee, upon Issuer Request and at the expense of the Issuers, shall execute proper
instruments acknowledging satisfaction and discharge of this Indenture with respect to such
Securities, when:

          (a) either:

     (i) all such Securities theretofore authenticated and delivered (other than (A)
such Securities which have been destroyed, lost or stolen and which have been
replaced or paid as provided in Section 3.6, and (B) such Securities for the payment
of which money or U.S. Government Obligations have theretofore been deposited in
trust or segregated and held in trust by the Issuers and thereafter repaid to the
Company or discharged from such trust, as provided in Section 10.3) have been
delivered to the Trustee for cancellation; or

     (ii) all such Securities not theretofore delivered to the Trustee for
cancellation:

     (A) have become due and payable; or

     (B) will become due and payable at their Stated Maturity within one
year; or

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     (C) are to be called for redemption within one year under arrangements
satisfactory to the Trustee for the giving of notice of redemption by the
Trustee in the name, and at the expense, of the Issuers,

and the Issuers, in the case of (ii)(A), (B) or (C) above, has deposited or caused
to be deposited with the Trustee as trust funds or U.S. Government Obligations in
trust for such purpose an amount sufficient to pay and discharge the entire
indebtedness on such Securities not theretofore delivered to the Trustee for
cancellation, for principal (and premium, if any) and interest to the date of such
deposit (in the case of Securities which have become due and payable) or to the
Stated Maturity or Redemption Date, as the case may be, together with instructions
from the Issuers irrevocably directing the Trustee to apply such funds to the
payment thereof at maturity or redemption, as the case may be;

     (b) the Issuers have paid or caused to be paid all other sums payable hereunder by the
Issuers with respect to such Securities; and

     (c) the Issuers have delivered to the Trustee an Officer’s Certificate and an Opinion
of Counsel, which, taken together, state that all conditions precedent herein provided for
relating to the satisfaction and discharge of this Indenture with respect to such Securities
have been complied with.

Notwithstanding the satisfaction and discharge of this Indenture with respect to the Securities of
any series, (x) the obligations of the Issuers to the Trustee under Section 6.7, the obligations of
the Trustee to any Authenticating Agent under Section 6.14 and the right of the Trustee to resign
under Section 6.10 shall survive, and (y) if money shall have been deposited with the Trustee
pursuant to clause (a) of this Section, the obligations of the Issuers and the Trustee under
Section 3.5, Section 3.6, Section 4.2, Section 6.6, Section 10.2, the last paragraph of Section
10.3 and Section 13.6 shall survive.

Section 4.2. Application of Trust Money.

     Subject to the provisions of the last paragraph of Section 10.3, all money deposited with the
Trustee pursuant to Section 4.1 shall be held in trust and applied by it, in accordance with the
provisions of the Securities and this Indenture, to the payment, either directly or through any
Paying Agent (including either of the Issuers acting as its own Paying Agent) as the Trustee may
determine, to the Persons entitled thereto, of the principal and any premium and interest for the
payment of which such money has been deposited with the Trustee.

ARTICLE FIVE

REMEDIES

Section 5.1. Events of Default.

     “Event of Default,” wherever used herein with respect to Securities of any series, means any
one of the following events (whatever the reason for such Event of Default and whether it shall be
voluntary or involuntary or be effected by operation of law or pursuant to any judgment, decree or
order of any court or any order, rule or regulation of any administrative or governmental body):

     (a) default in the payment of any interest upon any Security of that series when it
becomes due and payable, and continuance of such default for a period of 30 days
(regardless of whether such payment is prohibited by the provisions of Article Fifteen
hereof); or

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     (b) default in the payment of the principal of (or premium, if any, on) any Security of
that series at its Maturity (regardless of whether such payment is prohibited by the
provisions of Article Fifteen hereof); or

     (c) default in the performance, or breach, of any covenant set forth in Article Ten in
this Indenture (other than a covenant a default in the performance of which or the breach of
which is elsewhere in this Section specifically dealt with or which has expressly been
included in this Indenture solely for the benefit of series of Securities other than that
series), and continuance of such default or breach for a period of 90 days after there has
been given, by registered or certified mail, to the Issuers by the Trustee or to the Issuers
and the Trustee by the Holders of at least 25% in aggregate principal amount of the
Outstanding Securities of that series a written notice specifying such default or breach and
requiring it to be remedied and stating that such notice is a “Notice of Default” hereunder;
or

     (d) default in the performance, or breach, of any covenant in this Indenture (other
than a covenant in Article Ten or any other covenant a default in the performance of which
or the breach of which is elsewhere in this Section specifically dealt with or which has
expressly been included in this Indenture solely for the benefit of series of Securities
other than that series), and continuance of such default or breach for a period of 180 days
after there has been given, by registered or certified mail, to the Issuers by the Trustee
or to the Issuers and the Trustee by the Holders of at least 25% in aggregate principal
amount of the Outstanding Securities of that series a written notice specifying such default
or breach and requiring it to be remedied and stating that such notice is a “Notice of
Default” hereunder; or

     (e) either of the Issuers or any Guarantor pursuant to or within the meaning of any
Bankruptcy Law (i) commences a voluntary case, (ii) consents to the entry of any order for
relief against it in an involuntary case, (iii) consents to the appointment of a Custodian
of it or for all or substantially all of its property, or (iv) makes a general assignment
for the benefit of its creditors; or

     (f) a court of competent jurisdiction enters an order or decree under any Bankruptcy
Law that (i) is for relief against either of the Issuers or any Guarantor in an involuntary
case, (ii) appoints a Custodian of either of the Issuers or any Guarantor or for all or
substantially all of the property of either of the Issuers or any Guarantor, or (iii) orders
the liquidation of either of the Issuers or any Guarantor; and the order or decree remains
unstayed and in effect for 60 consecutive days; or

     (g)
default in the deposit of any sinking fund payment when due; or

     (h) the failure of any Securities Guarantee required with respect to Securities of that
series to be in full force and effect, except as provided in this Indenture or the terms of
such Securities; or

     (i) any other Event of Default provided with respect to Securities of that series in
accordance with Section 3.1.

Section 5.2. Acceleration of Maturity; Rescission and Annulment.

     If an Event of Default with respect to Securities of any series at the time Outstanding occurs
and is continuing, then in every such case the Trustee or the Holders of 25% in aggregate principal
amount of the Outstanding Securities of that series may declare the principal amount (or, if the
Securities of that

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series are Original Issue Discount Securities, such portion of the principal
amount as may be specified in the terms of that series) and all accrued and unpaid interest of all
of the Securities of that series to be due and payable immediately, by a notice in writing to the
Issuers (and to the Trustee if given by Holders), and upon any such declaration such principal
amount (or specified amount) shall become immediately due and payable. Notwithstanding the
foregoing, if an Event of Default specified in Section 5.1(e) or Section 5.1(f) occurs, the
Securities of any series at the time Outstanding shall be due and payable immediately without
further action or notice.

     At any time after such a declaration of acceleration with respect to Securities of any series
has been made and before a judgment or decree for payment of the money due has been obtained by the
Trustee as hereinafter in this Article Five provided, the Holders of a majority in aggregate
principal amount of the Outstanding Securities of that series, by written notice to the Issuers and
the Trustee, may rescind and annul such declaration and its consequences if:

     (a) the Issuers or, if applicable, one or more of the Guarantors has paid or deposited
with the Trustee a sum sufficient to pay:

     (i) all overdue interest on all Securities of that series;

     (ii) the principal of (and premium, if any, on) any Securities of that series
which have become due otherwise than by such declaration of acceleration and any
interest thereon at the rate or rates prescribed therefor in such Securities;

     (iii) to the extent that payment of such interest is lawful, interest upon
overdue interest at the rate or rates prescribed therefor in such Securities; and

     (iv) all sums paid or advanced by the Trustee hereunder and the reasonable
compensation, expenses, disbursements and advances of the Trustee, its agents and
counsel; and

     (b) all Events of Default with respect to Securities of that series, other than the
non-payment of the principal of Securities of that series which have become due solely by
such declaration of acceleration, have been cured or waived as provided in Section 5.13.

No such rescission shall affect any subsequent default or impair any right consequent thereon.

Section 5.3. Collection of Indebtedness and Suits for Enforcement by Trustee.

     The Issuers covenant that if:

     (a) default is made in the payment of any installment of interest on any Security when
such interest becomes due and payable and such default continues for a period of 30 days
(regardless of whether such payment is prohibited by the provisions of Article Fifteen
hereof); or

     (b) default is made in the payment of the principal of (or premium, if any, on) any
Security at the Maturity thereof (regardless of whether such payment is prohibited by the
provisions of Article Fifteen hereof),

the Issuers will, upon demand of the Trustee, pay to it, for the benefit of the Holders of such
Securities, the whole amount then due and payable on such Securities for principal and any premium
and interest and, to the extent that payment of such interest shall be legally enforceable,
interest on any overdue

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 principal and any premium and on any overdue interest, at the rate or rates
prescribed therefor in such Securities, and, in addition thereto, such further amount as shall be
sufficient to cover the costs and expenses of collection, including the reasonable compensation,
expenses, disbursements and advances of the Trustee, its agents and counsel.

     If the Issuers fail to pay such amounts forthwith upon such demand, the Trustee, in its own
name and as trustee of an express trust, may institute a judicial proceeding for the collection of
the sums so due and unpaid, may prosecute such proceeding to judgment or final decree and may
enforce the same against the Issuers or, if applicable, the Guarantors or any other obligor upon
such Securities and collect the moneys adjudged or decreed to be payable in the manner provided by
law out of the property of the Issuers or, if applicable, the Guarantors or any other obligor upon
such Securities, wherever situated.

     If an Event of Default with respect to Securities of any series occurs and is continuing, the
Trustee may in its discretion proceed to protect and enforce its rights and the rights of the
Holders of Securities of such series by such appropriate judicial proceedings as the Trustee shall
deem most effectual to protect and enforce any such rights, whether for the specific enforcement of
any covenant or agreement in this Indenture or in aid of the exercise of any power granted herein,
or to enforce any other proper remedy.

Section 5.4. Trustee May File Proofs of Claim.

     In case of the pendency of any receivership, insolvency, liquidation, bankruptcy,
reorganization, arrangement, adjustment, composition or other judicial proceeding relative to
either of the Issuers or, if applicable, any Guarantor or any other obligor upon the Securities,
its property or its creditors, the Trustee (irrespective of whether the principal of the Securities
shall then be due and payable as therein expressed or by declaration or otherwise and irrespective
of whether the Trustee shall have made any demand on the Issuers or, if applicable, the Guarantors
for the payment of overdue principal or interest) shall be entitled and empowered, by intervention
in such proceeding or otherwise:

     (a) to file and prove a claim for the whole amount of principal (and premium, if any)
and interest owing and unpaid in respect of the Securities and to file such other papers or
documents as may be necessary or advisable in order to have the claims of the Trustee
(including any claim for the reasonable compensation, expenses, disbursements and advances
of the Trustee, its agents and counsel) and of the Holders allowed in such judicial
proceeding; and

     (b) to collect and receive any moneys or other property payable or deliverable on any
such claims and to distribute the same;

and any custodian, receiver, assignee, trustee, liquidator, sequestrator or other similar official
in any such judicial proceeding is hereby authorized by each Holder to make such payments to the
Trustee and, if the Trustee shall consent to the making of such payments directly to the Holders,
to pay to the Trustee any amount due it for the reasonable compensation, expenses, disbursements
and advances of the Trustee, its agents and counsel, and any other amounts due the Trustee under
Section 6.7.

     No provision of this Indenture shall be deemed to authorize the Trustee to authorize or
consent to or accept or adopt on behalf of any Holder any plan of reorganization, compromise,
arrangement, adjustment or composition affecting the Securities or, if applicable, the Securities
Guarantee or the rights of any Holder thereof or to authorize the Trustee to vote in respect of the
claim of any Holder in any such proceeding; provided, however, that the Trustee may, on behalf of
the Holders, vote for the election of a trustee in bankruptcy or similar official and be a member
of a creditors’ or other similar committee.

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Section 5.5. Trustee May Enforce Claims Without Possession of Securities.

     All rights of action and claims under this Indenture or the Securities may be prosecuted and
enforced by the Trustee without the possession of any of the Securities or the production thereof
in any proceeding relating thereto, and any such proceeding instituted by the Trustee shall be
brought in its own name as trustee of an express trust, and any recovery of judgment shall, after
provision for the payment of the reasonable compensation, expenses, disbursements and advances of
the Trustee, its agents and counsel, be for the ratable benefit of the Holders of the Securities in
respect of which such judgment has been recovered.

Section 5.6. Application of Money Collected.

     Any money collected by the Trustee pursuant to this Article Five shall be applied in the
following order, at the date or dates fixed by the Trustee and, in case of the distribution of such
money on account of principal or any premium or interest, upon presentation of the Securities and
the notation thereon of the payment if only partially paid and upon surrender thereof if fully
paid:

     FIRST: To the payment of all amounts due the Trustee under Section 6.7;

     SECOND: Subject to Article Fifteen, to the payment of the amounts then due and unpaid
for principal of and any premium and interest on the Securities in respect of which or for
the benefit of which such money has been collected, ratably, without preference or priority
of any kind, according to the amounts due and payable on such Securities for principal and
any premium and interest, respectively; and

     THIRD: The balance, if any, to the Issuers.

Section 5.7. Limitation on Suits.

     No Holder of any Security of any series shall have any right to institute any proceeding,
judicial or otherwise, with respect to this Indenture (including, if applicable, the Securities
Guarantee), or for the appointment of a receiver or trustee, or for any other remedy hereunder,
unless:

     (a) such Holder has previously given written notice to the Trustee of a continuing
Event of Default with respect to the Securities of that series;

     (b) the Holders of not less than 25% in aggregate principal amount of the Outstanding
Securities of that series shall have made written request to the Trustee to institute
proceedings in respect of such Event of Default in its own name as Trustee hereunder;

     (c) such Holder or Holders have offered to the Trustee reasonable indemnity
satisfactory to the Trustee against the costs, expenses and liabilities to be incurred in
compliance with such request;

     (d) the Trustee for 60 days after its receipt of such notice, request and offer of
indemnity has failed to institute any such proceeding; and

     (e) no direction inconsistent with such written request has been given to the Trustee
during such 60-day period by the Holders of a majority in aggregate principal amount of the
Outstanding Securities of that series;

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it being understood and intended that no one or more of such Holders shall have any right in any
manner whatsoever by virtue of, or by availing of, any provision of this Indenture to affect,
disturb or prejudice the rights of any other of such Holders, or to obtain or to seek to obtain
priority or preference over any other of such Holders or to enforce any right under this Indenture,
except in the manner herein provided and for the equal and ratable benefit of all such Holders.

Section 5.8. Unconditional Right of Holders to Receive Principal, Premium and Interest.

     Notwithstanding any other provision in this Indenture, the Holder of any Security shall have
the right, which is absolute and unconditional (subject to Article Fifteen and Article Sixteen), to
receive payment of the principal of and any premium and interest on such Security on the Stated
Maturity or Maturities expressed in such Security (or, in the case of redemption or offer by the
Issuers to purchase the Securities as required by this Indenture, on the Redemption Date or
purchase date, as applicable) and to institute suit for the enforcement of any such payment, and
such rights shall not be impaired without the consent of such Holder.

Section 5.9. Restoration of Rights and Remedies.

     If the Trustee or any Holder has instituted any proceeding to enforce any right or remedy
under this Indenture and such proceeding has been discontinued or abandoned for any reason, or has
been determined adversely to the Trustee or to such Holder, then and in every such case, subject to
any determination in such proceeding, the Issuers, the Guarantors, the Trustee and the Holders
shall be restored severally and respectively to their former positions hereunder and thereafter all
rights and remedies of the Trustee and the Holders shall continue as though no such proceeding had
been instituted.

Section 5.10. Rights and Remedies Cumulative.

     Except as otherwise provided with respect to the replacement or payment of mutilated,
destroyed, lost or stolen Securities in the last paragraph of Section 3.6, no right or remedy
herein conferred upon or reserved to the Trustee or to the Holders is intended to be exclusive of
any other right or remedy, and every right and remedy shall, to the extent permitted by law, be
cumulative and in addition to every other right and remedy given hereunder or now or hereafter
existing at law or in equity or otherwise. The assertion or employment of any right or remedy
hereunder, or otherwise, shall not prevent the concurrent assertion or employment of any other
appropriate right or remedy.

Section 5.11. Delay or Omission Not Waiver.

     To the fullest extent permitted by applicable law, no delay or omission of the Trustee or of
any Holder of any Securities to exercise any right or remedy accruing upon any Event of Default
shall impair any such right or remedy or constitute a waiver of any such Event of Default or an
acquiescence therein. Every right and remedy given by this Article Five or by law to the Trustee
or to the Holders may be exercised from time to time, and as often as may be deemed expedient, by
the Trustee or by the Holders, as the case may be.

Section 5.12. Control by Holders.

     The Holders of a majority in aggregate principal amount of the Outstanding Securities of any
series shall have the right to direct the time, method and place of conducting any proceeding for
any remedy available to the Trustee, or exercising any trust or power conferred on the Trustee,
with respect to the Securities of such series; provided, however, that:

39

 

     (a) such direction shall not be in conflict with any rule of law or with this
Indenture;

     (b) the Trustee may take any other action deemed proper by the Trustee that is not
inconsistent with such direction; and

     (c) subject to the provisions of Section 6.1, the Trustee shall have the right to
decline to follow any such direction if the Trustee in good faith shall determine that the
direction would expose the Trustee to personal liability.

Section 5.13. Waiver of Past Defaults.

     By written notice to the Issuers and the Trustee, the Holders of a majority in aggregate
principal amount of the Outstanding Securities of any series may on behalf of the Holders of all
the Securities of such series waive any past default hereunder with respect to such series and its
consequences, except:

     (a) a continuing default in the payment of the principal of or any premium or interest
on any Security of such series; or

     (b) a default in respect of a covenant or provision hereof which under Article Nine
cannot be modified or amended without the consent of the Holder of each Outstanding Security
of such series affected.

Upon any such waiver, such default shall cease to exist, and any Event of Default arising therefrom
shall be deemed to have been cured, for every purpose of this Indenture, but no such waiver shall
extend to any subsequent or other default or impair any right consequent thereon.

Section 5.14. Undertaking for Costs.

     All parties to this Indenture agree, and each Holder of any Security by such Holder’s
acceptance thereof shall be deemed to have agreed, that any court may in its discretion require, in
any suit for the enforcement of any right or remedy under this Indenture, or in any suit against
the Trustee for any action taken, suffered or omitted by it as Trustee, the filing by any party
litigant, other than the Trustee, in such suit of an undertaking to pay the costs of such suit, and
that such court may in its discretion assess reasonable costs, including reasonable attorneys’
fees, against any party litigant in such suit, having due regard to the merits and good faith of
the claims or defenses made by such party litigant; but the provisions of this Section 5.14 shall
not apply to any suit instituted by the Issuers, to any suit instituted by the Trustee, to any suit
instituted by any Holder, or group of Holders, holding in the aggregate more than 10% in aggregate
principal amount of the Outstanding Securities of any series, or to any suit instituted by any
Holder for the enforcement of the payment of the principal of (or premium, if any) or interest on
any Security on or after the Stated Maturity or Maturities expressed in such Security (or, in the
case of redemption or offer by the Issuers to purchase the Securities as required by this
Indenture, on or after the Redemption Date or purchase date, as applicable).

Section 5.15. Waiver of Stay, Extension or Usury Laws.

     Each of the Issuers and the Guarantors covenants (to the extent that it may lawfully do so)
that it will not at any time insist upon, or plead, or in any manner whatsoever claim or take the
benefit or advantage of, any stay, extension or usury law wherever enacted, now or at any time
hereafter in force, which may affect the covenants or the performance of this Indenture; and each
of the Issuers and the Guarantors (to the extent that it may lawfully do so) hereby expressly
waives all benefit or advantage of any such law and covenants that it will not hinder, delay or
impede the execution of any power herein

40

 

granted to the Trustee, but will suffer and permit the
execution of every such power as though no such law had been enacted.

ARTICLE SIX

THE TRUSTEE

Section 6.1.
Certain Duties and Responsibilities.

     (a) Except during the continuance of an Event of Default:

     (i) the Trustee undertakes to perform such duties and only such duties as are
specifically set forth in this Indenture and as are provided by the Trust Indenture
Act, and no implied covenants or obligations shall be read into this Indenture
against the Trustee; and

     (ii) in the absence of bad faith on its part, the Trustee may conclusively
rely, as to the truth of the statements and the correctness of the opinions
expressed therein, upon certificates or opinions furnished to the Trustee and
conforming to the requirements of this Indenture; but in the case of any such
certificates or opinions which by any provision hereof are specifically required to
be furnished to the Trustee, the Trustee shall be under a duty to examine the same
to determine whether they conform to the requirements of this Indenture.

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

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

     (i) this Subsection shall not be construed to limit the effect of Subsection
(a) of this Section;

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

     (iii) the Trustee shall not be liable with respect to any action taken or
omitted to be taken by it in good faith in accordance with the direction of the
Holders of a majority in aggregate principal amount of the Outstanding Securities of
any series, given pursuant to Section 5.12, relating to the time, method and place
of conducting any
proceeding for any remedy available to the Trustee, or exercising any trust or
power conferred upon the Trustee, under this Indenture with respect to the
Securities of such series; and

     (iv) no provision of this Indenture shall require the Trustee to expend or risk
its own funds or otherwise incur any financial liability in the performance of any
of its duties hereunder, or in the exercise of any of its rights or powers, if it
shall have

41

 

reasonable grounds for believing that repayment of such funds or adequate
indemnity against such risk or liability is not reasonably assured to it.

     (d) Regardless of whether therein expressly so provided, every provision of this
Indenture relating to the conduct or affecting the liability of or affording protection to
the Trustee shall be subject to the provisions of this Section.

Section 6.2. Notice of Defaults.

     Within 90 days after the occurrence of any Default hereunder with respect to the Securities of
any series, the Trustee shall transmit by mail to all Holders of Securities of such series, as
their names and addresses appear in the Security Register, notice of such Default hereunder known
to the Trustee, unless such Default shall have been cured or waived; provided, however, that,
except in the case of a Default in the payment of the principal of or any premium or interest on
any Security of such series or in the payment of any sinking fund installment with respect to
Securities of such series, the Trustee may withhold from Holders of Securities notice of any
continuing Default or Event of Default if a Responsible Officer of the Trustee in good faith
determines that the withholding of such notice is in the interest of the Holders of Securities of
such series; and, provided, further, that in the case of any Default of the character specified in
Section 5.1(c) with respect to Securities of such series, no such notice to Holders shall be given
until at least 60 days after the occurrence thereof and that in the case of any Default of the
character specified in Section 5.1(d) with respect to Securities of such series, no such notice to
Holders shall be given until at least 90 days after the occurrence thereof.

Section 6.3. Certain Rights of Trustee.

     Subject to the provisions of Section 6.1:

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

     (b) any request or direction of the Issuers or a Guarantor mentioned herein shall be
sufficiently evidenced by an Issuer Request or Issuer Order and any resolution of the Board
of Directors of the Issuers or a Guarantor may be sufficiently evidenced by a Board
Resolution;

     (c) whenever in the administration of this Indenture the Trustee shall deem it
desirable that a matter be proved or established prior to taking, suffering or omitting any
action hereunder,
the Trustee (unless other evidence be herein specifically prescribed) shall be entitled
to receive and may, in the absence of bad faith on its part, rely upon an Officer’s
Certificate;

     (d) the Trustee may consult with counsel and the advice of such counsel or any Opinion
of Counsel shall be full and complete authorization and protection from liability in respect
of any action taken, suffered or omitted by it hereunder in good faith and in reliance
thereon;

     (e) the Trustee shall be under no obligation to exercise any of the rights or powers
vested in it by this Indenture at the request or direction of any of the Holders pursuant to
this Indenture, unless such Holders shall have offered to the Trustee reasonable security or
indemnity satisfactory to the Trustee against the costs, expenses and liabilities which
might be incurred by it in compliance with such request or direction;

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     (f) the Trustee shall not be bound to make any investigation into the facts or matters
stated in any resolution, certificate, statement, instrument, opinion, report, notice,
request, direction, consent, order, bond, debenture, note, other evidence of indebtedness or
other paper or document, but the Trustee, in its discretion, may make such further inquiry
or investigation into such facts or matters as it may see fit, and, if the Trustee shall
determine to make such further inquiry or investigation, it shall be entitled to examine the
books, records and premises of the Issuers, personally or by agent or attorney;

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

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

     (i) the Trustee shall be entitled to the rights and protections afforded to the Trustee
pursuant to this Article Six in acting as a Paying Agent or Security Registrar hereunder;

     (j) the Trustee shall not be deemed to have notice of any Default or Event of Default
unless a Responsible Officer of the Trustee has actual knowledge thereof or unless written
notice of any event which is in fact such a Default is received by the Trustee at the
Corporate Trust Office of the Trustee, and such notice references the Securities and this
Indenture; and

     (k) anything in this Indenture notwithstanding, in no event shall the Trustee be liable
for any special, indirect, punitive, incidental or consequential loss or damage of any kind
whatsoever (including but not limited to loss of profit), even if the Issuers have been
advised as to the likelihood of such loss or damage and regardless of the form of action.

Section 6.4. Not Responsible for Recitals or Issuance of Securities.

     The recitals contained herein and in the Securities and the notations of the Subsidiary
Guarantee, except the Trustee’s certificates of authentication, shall be taken as the statements of
the Issuers or, if applicable, the Guarantors, and neither the Trustee nor any Authenticating Agent
assumes any responsibility for their correctness. Neither the Trustee nor any Authenticating Agent
makes any representations as to the validity or sufficiency of this Indenture or of the Securities
or the Subsidiary Guarantee, if any. The Trustee or any Authenticating Agent shall not be
accountable for the use or application by the Issuers of Securities or the proceeds thereof.

Section 6.5. May Hold Securities.

     The Trustee, any Authenticating Agent, any Paying Agent, any Security Registrar or any other
agent of either of the Issuers or, if applicable, any Guarantor, in its individual or any other
capacity, may become the owner or pledgee of Securities and, subject to Sections 310(b) and 311 of
the Trust Indenture Act and Section 6.8, Section 6.9 and Section 6.13, may otherwise deal with the
Issuers or, if applicable, the Guarantors with the same rights it would have if it were not
Trustee, Authenticating Agent, Paying Agent, Security Registrar or such other agent.

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Section 6.6. Money Held in Trust.

     Money held by the Trustee in trust hereunder need not be segregated from other funds except to
the extent required by law. The Trustee shall be under no liability for interest on any money
received by it hereunder except as otherwise agreed in writing with the Issuers or, if applicable,
one or more of the Guarantors.

Section 6.7. Compensation and Reimbursement.

     The Issuers agree:

     (a) to pay to the Trustee from time to time reasonable compensation for all services
rendered by it hereunder (which compensation shall not be limited by any provision of law in
regard to the compensation of a trustee of an express trust);

     (b) except as otherwise expressly provided herein, to reimburse the Trustee upon its
request for all reasonable expenses, disbursements and advances incurred or made by the
Trustee in accordance with any provision of this Indenture (including the reasonable
compensation and the expenses and disbursements of its agents and counsel), except any such
expense, disbursement or advance as may be attributable to its negligence or bad faith; and

     (c) to indemnify each of the Trustee and its officers, directors, agents and employees
for, and to hold it and them harmless against, any loss, liability or expense incurred
without negligence, bad faith or willful misconduct on its or their part, arising out of or
in connection with the acceptance or administration of the trust or trusts hereunder,
including the costs and expenses of defending itself or themselves against any claim or
liability in connection with the exercise or performance of any of its or their powers or
duties hereunder.

     As security for the performance of the obligations of the Issuers under this Section, the
Trustee shall have a lien prior to the Securities upon all property and funds held or collected by
the Trustee as such, except funds held in trust for the payment of the principal of (and premium,
if any) or interest on particular Securities. Such obligations of the Issuers under this Section
shall not be subordinated to the payment of Senior Debt pursuant to Article Fifteen.

     Without limiting any rights available to the Trustee under applicable law, when the Trustee
incurs expenses or renders services in connection with an Event of Default specified in Section
5.1(e) or Section 5.1(f), the expenses (including the reasonable charges and expenses of its
counsel) and the compensation for the services of the Trustee are intended to constitute expenses
of administration under any applicable Bankruptcy Law.

     The provisions of this Section 6.7 shall survive the resignation or removal of the Trustee and
the termination or satisfaction and discharge of this Indenture and the Legal Defeasance of the
Securities.

Section 6.8. Disqualification; Conflicting Interests.

     Reference is made to Section 310(b) of the Trust Indenture Act. There shall be excluded from
the operation of Section 310(b)(1) of the Trust Indenture Act this Indenture with respect to the
Securities of more than one series.

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Section 6.9. Corporate Trustee Required; Eligibility.

     There shall at all times be a Trustee hereunder which shall be a corporation organized and
doing business under the laws of the United States of America, any State thereof or the District of
Columbia, authorized under such laws to exercise corporate trust powers, having a combined capital
and surplus required by the Trust Indenture Act, subject to supervision or examination by Federal
or State authority. If such corporation publishes reports of condition at least annually, pursuant
to law or to the requirements of said supervising or examining authority, then for the purposes of
this Section, the combined capital and surplus of such corporation shall be deemed to be its
combined capital and surplus as set forth in its most recent report of condition so published. The
Trustee shall not be an obligor upon the Securities or an Affiliate thereof. If at any time the
Trustee shall cease to be eligible in accordance with the provisions of this Section, it shall
resign immediately in the manner and with the effect hereinafter specified in this Article Six.

Section 6.10. Resignation and Removal; Appointment of Successor.

     (a) No resignation or removal of the Trustee and no appointment of a successor Trustee
pursuant to this Article shall become effective until the acceptance of appointment by the
successor Trustee in accordance with the applicable requirements of Section 6.11.

     (b) The Trustee may resign at any time with respect to the Securities of one or more
series by giving written notice thereof to the Issuers. If the instrument of acceptance of
appointment by a successor Trustee required by Section 6.11 shall not have been delivered to
the Trustee within 30 days after the giving of such notice of resignation, the resigning
Trustee may
petition any court of competent jurisdiction for the appointment of a successor Trustee
with respect to the Securities of such series.

     (c) The Trustee may be removed at any time with respect to the Securities of any series
by Act of the Holders of a majority in aggregate principal amount of the Outstanding
Securities of such series, delivered to the Trustee and to the Issuers.

     (d) If at any time:

     (i) the Trustee shall fail to comply with Section 310(b) of the Trust Indenture
Act after written request therefor by the Issuers or by any Holder who has been a
bona fide Holder of a Security for at least six months; or

     (ii) the Trustee shall cease to be eligible under Section 6.9 and shall fail to
resign after written request therefor by the Issuers or by any such Holder; or

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

then, in any such case, (A) the Issuers, by their respective Board Resolutions, may remove
the Trustee with respect to all Securities, or (B) subject to Section 5.14, any Holder who
has been a bona fide Holder of a Security for at least six months may, on behalf of himself
and all others similarly situated, petition any court of competent jurisdiction for the
removal of the Trustee with respect to all Securities and the appointment of a successor
Trustee or Trustees.

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     (e) If the Trustee shall resign, be removed or become incapable of acting, or if a
vacancy shall occur in the office of Trustee for any cause, with respect to the Securities
of one or more series, the Issuers, by their respective Board Resolutions, shall promptly
appoint a successor Trustee or Trustees with respect to the Securities of that or those
series (it being understood that any such successor Trustee may be appointed with respect to
the Securities of one or more or all of such series and that at any time there shall be only
one Trustee with respect to the Securities of any particular series), and the Issuers and
the successor Trustee shall comply with the applicable requirements of Section 6.11. If,
within one year after such resignation, removal or incapability, or the occurrence of such
vacancy, a successor Trustee with respect to the Securities of any series shall be appointed
by Act of the Holders of a majority in aggregate principal amount of the Outstanding
Securities of such series delivered to the Issuers and the retiring Trustee, the successor
Trustee so appointed shall, forthwith upon its acceptance of such appointment in accordance
with the applicable requirements of Section 6.11, become the successor Trustee with respect
to the Securities of such series and to that extent supersede the successor Trustee
appointed by the Issuers. If no successor Trustee with respect to the Securities of any
series shall have been so appointed by the Issuers or the Holders and accepted appointment
in the manner required by Section 6.11, any Holder who has been a bona fide Holder of a
Security of such series for at least six months may, on behalf of himself and all others
similarly situated, petition any court of competent jurisdiction for the appointment of a
successor Trustee with respect to the Securities of such series.

     (f) The Issuers shall give notice of each resignation and each removal of the Trustee
with respect to the Securities of any series and each appointment of a successor Trustee
with respect to the Securities of any series to all Holders of Securities of such series in
the manner
provided in Section 1.7. Each notice shall include the name of the successor Trustee
with respect to the Securities of such series and the address of its Corporate Trust Office.

Section 6.11. Acceptance of Appointment by Successor.

     (a) In case of the appointment hereunder of a successor Trustee with respect to all
Securities, the successor Trustee so appointed shall execute, acknowledge and deliver to the
Issuers, the Guarantors (if applicable) and to the retiring Trustee an instrument accepting
such appointment, and thereupon the resignation or removal of the retiring Trustee shall
become effective and such successor Trustee, without any further act, deed or conveyance,
shall become vested with all the rights, powers, trusts and duties of the retiring Trustee;
but, on the request of an Issuer, any Guarantor (if applicable) or the successor Trustee,
such retiring Trustee shall, upon payment of its charges, execute and deliver an instrument
transferring to such successor Trustee all the rights, powers and trusts of the retiring
Trustee and shall duly assign, transfer and deliver to such successor Trustee all property
and money held by such retiring Trustee hereunder, subject nevertheless to its lien under
Section 6.7.

     (b) In case of the appointment hereunder of a successor Trustee with respect to the
Securities of one or more (but not all) series, the Issuers, the Guarantors (if applicable),
the retiring Trustee and each successor Trustee with respect to the Securities of one or
more series shall execute and deliver an indenture supplemental hereto wherein each
successor Trustee shall accept such appointment and which (i) shall contain such provisions
as shall be necessary or desirable to transfer and confirm to, and to vest in, each
successor Trustee all the rights, powers, trusts and duties of the retiring Trustee with
respect to the Securities of that or those series to which the appointment of such successor
Trustee relates, (ii) if the retiring Trustee is not retiring with respect to all
Securities, shall contain such provisions as shall be deemed necessary or desirable to
confirm that all the rights, powers, trusts and duties of the retiring Trustee with

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respect
to the Securities of that or those series as to which the retiring Trustee is not retiring
shall continue to be vested in the retiring Trustee, and (iii) shall add to or change any of
the provisions of this Indenture as shall be necessary to provide for or facilitate the
administration of the trusts hereunder by more than one Trustee, it being understood that
nothing herein or in such supplemental indenture shall constitute such Trustees co-trustees
of the same trust and that each such Trustee shall be trustee of a trust or trusts hereunder
separate and apart from any trust or trusts hereunder administered by any other such
Trustee; and upon the execution and delivery of such supplemental indenture the resignation
or removal of the retiring Trustee shall become effective to the extent provided therein and
each such successor Trustee, without any further act, deed or conveyance, shall become
vested with all the rights, powers, trusts and duties of the retiring Trustee with respect
to the Securities of that or those series to which the appointment of such successor Trustee
relates; but, on request of an Issuer, any Guarantor (if applicable) or any successor
Trustee, such retiring Trustee, upon payment of its charges, shall execute and deliver an
instrument transferring to such successor Trustee all the rights, powers and trusts of the
retiring Trustee with respect to the Securities of the series to which the appointment of
such successor relates and shall duly assign, transfer and deliver to such successor Trustee
all property and money held by such retiring Trustee hereunder with respect to the
Securities of such series, subject nevertheless to its lien under Section 6.7.

     (c) Upon request of any such successor Trustee, the Issuers and, if applicable, the
Guarantors shall execute any and all instruments for more fully and certainly vesting in and
confirming to such successor Trustee all such rights, powers and trusts referred to in
paragraph (a) or (b) of this Section, as the case may be.

     (d) No successor Trustee shall accept its appointment unless at the time of such
acceptance such successor Trustee shall be qualified and eligible under this Article and the
Trust Indenture Act.

Section 6.12. Merger, Conversion, Consolidation or Succession to Business.

     Any corporation into which the Trustee may be merged or converted or with which it may be
consolidated, or any corporation resulting from any merger, conversion or consolidation to which
the Trustee shall be a party, or any corporation succeeding to all or substantially all the
corporate trust business of the Trustee, shall be the successor of the Trustee hereunder, provided
such corporation shall be otherwise qualified and eligible under this Article Six, without the
execution or filing of any paper or any further act on the part of any of the parties hereto. As
soon as practicable, the successor Trustee shall mail a notice of its succession to the Issuers and
the Holders of the Securities then Outstanding. In case any Securities shall have been
authenticated, but not delivered, by the Trustee then in office, any successor by merger,
conversion or consolidation to such authenticating Trustee may adopt such authentication and
deliver the Securities so authenticated with the same effect as if such successor Trustee had
itself authenticated such Securities.

Section 6.13. Preferential Collection of Claims Against Issuers.

     Reference is made to Section 311 of the Trust Indenture Act. For purposes of Section 311(b)
of the Trust Indenture Act:

     (a) the term “cash transaction” means any transaction in which full payment for goods
or securities sold is made within seven days after delivery of the goods or securities in
currency or in checks or other orders drawn upon banks or bankers and payable upon demand;

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     (b) the term “self-liquidating paper” means any draft, bill of exchange, acceptance or
obligation which is made, drawn, negotiated or incurred by an Issuer or, if applicable, any
Guarantor for the purpose of financing the purchase, processing, manufacturing, shipment,
storage or sale of goods, wares or merchandise and which is secured by documents evidencing
title to, possession of, or a lien upon, the goods, wares or merchandise or the receivables
or proceeds arising from the sale of the goods, wares or merchandise previously constituting
the security, provided the security is received by the Trustee simultaneously with the
creation of the creditor relationship with such Issuer or, if applicable, such Guarantor
arising from the making, drawing, negotiating or incurring of the draft, bill of exchange,
acceptance or obligation.

Section 6.14. Appointment of Authenticating Agent.

     The Trustee may appoint an Authenticating Agent or Agents with respect to one or more series
of Securities which shall be authorized to act on behalf of the Trustee to authenticate Securities
of such series issued upon original issue and upon exchange, registration of transfer or partial
redemption thereof
or pursuant to Section 3.6, and Securities so authenticated shall be entitled to the benefits
of this Indenture and shall be valid and obligatory for all purposes as if authenticated by the
Trustee hereunder. Wherever reference is made in this Indenture to the authentication and delivery
of Securities by the Trustee or the Trustee’s certificate of authentication, such reference shall
be deemed to include authentication and delivery on behalf of the Trustee by an Authenticating
Agent and a certificate of authentication executed on behalf of the Trustee by an Authenticating
Agent. Each Authenticating Agent shall be acceptable to the Issuers and shall at all times be a
corporation organized and doing business under the laws of the United States of America, any State
thereof or the District of Columbia, authorized under such laws to act as Authenticating Agent,
having a combined capital and surplus of not less than $50,000,000 and subject to supervision or
examination by Federal or State authority. If such Authenticating Agent publishes reports of
condition at least annually, pursuant to law or to the requirements of said supervising or
examining authority, then for the purposes of this Section, the combined capital and surplus of
such Authenticating Agent shall be deemed to be its combined capital and surplus as set forth in
its most recent report of condition so published. If at any time an Authenticating Agent shall
cease to be eligible in accordance with the provisions of this Section, such Authenticating Agent
shall resign immediately in the manner and with the effect specified in this Section.

     Any corporation into which an Authenticating Agent may be merged or converted or with which it
may be consolidated, or any corporation resulting from any merger, conversion or consolidation to
which such Authenticating Agent shall be a party, or any corporation succeeding to all or
substantially all of the corporate agency or corporate trust business of an Authenticating Agent,
shall continue to be an Authenticating Agent, provided such corporation shall be otherwise eligible
under this Section, without the execution or filing of any paper or any further act on the part of
the Trustee or the Authenticating Agent.

     An Authenticating Agent may resign at any time by giving written notice thereof to the Trustee
and to the Issuers and, if applicable, the Guarantors. The Trustee for any series of Securities
may at any time terminate the agency of an Authenticating Agent by giving written notice thereof to
such Authenticating Agent and to the Issuers and, if applicable, the Guarantors. Upon receiving
such a notice of resignation or upon such a termination, or in case at any time such Authenticating
Agent shall cease to be qualified and eligible in accordance with the provisions of this Section,
the Trustee for such series may appoint a successor Authenticating Agent which shall be acceptable
to the Issuers and, if applicable, the Guarantors and shall mail written notice of such appointment
by first-class mail, postage prepaid, to all Holders of Securities of the series with respect to
which such Authenticating Agent will serve, as their names and addresses appear in the Security
Register. Any successor Authenticating Agent upon acceptance of its appointment hereunder shall
become vested with all the rights, powers and duties of its

48

 

predecessor hereunder, with like effect
as if originally named as an Authenticating Agent. No successor Authenticating Agent shall be
appointed unless eligible under the provisions of this Section.

     Except with respect to an Authenticating Agent appointed at the request of the Issuers or, if
applicable, the Guarantors, the Trustee agrees to pay to each Authenticating Agent from time to
time reasonable compensation for its services under this Section 6.14, and the Trustee shall be
entitled to be reimbursed by the Issuers or, if applicable, the Guarantors for such payments,
subject to the provisions of Section 6.7.

     If an appointment with respect to one or more series is made pursuant to this Section 6.14,
the Securities of such series may have endorsed thereon, in addition to the Trustee’s certificate
of authentication, an alternate certificate of authentication in the following form:

     This is one of the Securities of the series designated therein referred to in the
within-mentioned Indenture.

	 	 	 	 	 	 	 

	 	 	[                    ], as Trustee	 	 
	 
	 	 	 	 	 	 
	 

	 	By:	 	 	 	 
	 

	 	 	 	 

As Authenticating Agent
	 	 
	 
	 	 	 	 	 	 
	 

	 	By:	 	 	 	 
	 

	 	 	 	 

Authorized Officer
	 	 

ARTICLE SEVEN

HOLDERS’ LISTS AND REPORTS BY TRUSTEE AND COMPANY

Section 7.1. Issuers to Furnish Trustee Names and Addresses of Holders.

     The Issuers will furnish or cause to be furnished to the Trustee:

     (a) semi-annually, not more than 5 days after each Regular Record Date for a series of
Securities, a list for such series of Securities, in such form as the Trustee may reasonably
require, of the names and addresses of the Holders of Securities of such series as of such
Regular Record Date; and

     (b) at such other times as the Trustee may request in writing, within 30 days after the
receipt by the Issuers of any such request, a list of similar form and content as of a date
not more than 15 days prior to the time such list is furnished;

     provided, however, that if and so long as the Trustee shall be the Security Registrar, no such
list need be furnished with respect to such series of Securities.

Section 7.2. Preservation of Information; Communications to Holders.

     (a) The Trustee shall preserve, with respect to each series of Securities, in as
current a form as is reasonably practicable, the names and addresses of Holders contained in
the most recent list furnished to the Trustee as provided in Section 7.1 or the names and
addresses of Holders received by the Trustee in its capacity as Security Registrar. The
Trustee may destroy any list furnished to it as provided in Section 7.1 upon receipt of a
new list so furnished.

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     (b) If three or more Holders (herein referred to as “applicants”) apply in writing to
the Trustee, and furnish to the Trustee reasonable proof that each such applicant has owned
a Security for a period of at least six months preceding the date of such application, and
such application states that the applicants desire to communicate with other Holders with
respect to their rights under this Indenture or under the Securities and is accompanied by a
copy of the form of proxy or other communication which such applicants propose to transmit,
then the Trustee shall, within five business days after the receipt of such application, at
its election, either:

     (i) afford such applicants access to the information preserved at the time by
the Trustee in accordance with Section 7.2(a); or

     (ii) inform such applicants as to the approximate number of Holders whose names
and addresses appear in the information preserved at the time by the Trustee in
accordance with Section 7.2(a), and as to the approximate cost of mailing to such
Holders the form of proxy or other communication, if any, specified in such
application.

     If the Trustee shall elect not to afford such applicants access to such
information, the Trustee shall, upon the written request of such applicants, mail to
each Holder whose name and address appear in the information preserved at the time
by the Trustee in accordance with Section 7.2(a) a copy of the form of proxy or
other communication which is specified in such request, with reasonable promptness
after a tender to the Trustee of the material to be mailed and of payment, or
provision for the payment, of the reasonable expenses of mailing, unless within five
days after such tender the Trustee shall mail to such applicants and file with the
SEC, together with a copy of the material to be mailed, a written statement to the
effect that, in the opinion of the Trustee, such mailing would be contrary to the
best interest of the Holders or would be in violation of applicable law. Such
written statement shall specify the basis of such opinion. If the SEC, after
opportunity for a hearing upon the objections specified in the written statement so
filed, shall enter an order refusing to sustain any of such objections or if, after
the entry of an order sustaining one or more of such objections, the SEC shall find,
after notice and opportunity for hearing, that all the objections so sustained have
been met and shall enter an order so declaring, the Trustee shall mail copies of
such material to all such Holders with reasonable promptness after the entry of such
order and the renewal of such tender; otherwise the Trustee shall be relieved of any
obligation or duty to such applicants respecting their application.

     (c) Every Holder of Securities, by receiving and holding the same, agrees with the
Issuers, the Guarantors (if applicable) and the Trustee that none of the Issuers, the
Guarantors (if applicable) nor the Trustee nor any agent of any of them shall be held
accountable by reason of the disclosure of any such information as to the names and
addresses of the Holders in accordance with Section 7.2(b), regardless of the source from
which such information was derived, and that the Trustee shall not be held accountable by
reason of mailing any material pursuant to a request made under Section 7.2(b).

Section 7.3. Reports by Trustee.

     Any Trustee’s report required pursuant to Section 313(a) of the Trust Indenture Act shall be
dated as of May 15, and shall be transmitted within 60 days after May 15 of each year (but in all
events at intervals of not more than 12 months), commencing with the year 20__, by mail to all
Holders, as their names and addresses appear in the Security Register. A copy of each such report
shall, at the time of such transmission to Holders, be filed by the Trustee with each stock
exchange upon which any Securities are

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listed, and with the SEC. The Issuers will notify the
Trustee when any Securities are listed on any stock exchange.

Section 7.4. Reports by Company.

     The Company shall:

     (a) file with the Trustee, within 15 days after the Company files the same with the
SEC, copies of the annual reports and of the information, documents and other reports (or
copies of such portions of any of the foregoing as the SEC may from time to time by rules
and regulations prescribe) which the Company may be required to file with the SEC pursuant
to Section 13 or Section 15(d) of the Exchange Act; or, if the Company is not required to
file information, documents or reports pursuant to either of said Sections, then it shall
file with the Trustee and the SEC, in accordance with rules and regulations prescribed from
time to time by the SEC, such of the supplementary and periodic information, documents and
reports which may be required pursuant to Section 13 of the Exchange Act in respect of a
security listed and registered on a national securities exchange as may be prescribed from
time to time in such rules and regulations;

     (b) file with the Trustee and the SEC, in accordance with rules and regulations
prescribed from time to time by the SEC, such additional information, documents and reports
with respect to compliance by the Company with the conditions and covenants of this
Indenture as may be required from time to time by such rules and regulations; and

     (c) transmit by mail to all Holders, as their names and addresses appear in the
Security Register, within 30 days after the filing thereof with the Trustee, such summaries
of any information, documents and reports required to be filed by the Company pursuant to
clauses (a) and (b) of this Section as may be required by rules and regulations prescribed
from time to time by the SEC.

ARTICLE EIGHT

CONSOLIDATION, AMALGAMATION, MERGER AND SALE

Section 8.1. Issuers May Consolidate, Etc., Only on Certain Terms.

     Neither of the Issuers shall convert into, or consolidate, amalgamate or merge with or into
any other Person or sell, assign, transfer, convey, lease or otherwise dispose of all or
substantially all of its properties and assets on a consolidated basis to any other Person unless:

     (a) either: (i) such Issuer is the surviving Person; or (ii) the Person formed by or
surviving any such consolidation, amalgamation or merger or resulting from such conversion
(if other than such Issuer) or to which such sale, assignment, transfer, conveyance, lease
or other disposition has been made is a corporation, limited liability company or limited
partnership, in the case of the Company (and a corporation, in the case of Finance Corp. for
so long as the Company is not a corporation), organized or existing under the laws of the
United States, any State thereof or the District of Columbia;

     (b) the Person formed by or surviving any such conversion, consolidation, amalgamation
or merger (if other than such Issuer) or the Person to which such sale, assignment,
transfer, conveyance, lease or other disposition has been made assumes by an indenture
supplemental hereto, executed and delivered to the Trustee, the due and punctual payment of
the principal of

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(and premium, if any) and interest on all the Securities and the
performance of every covenant of this Indenture on the part of such Issuer to be performed
or observed;

     (c) immediately after giving effect to such transaction, no Event of Default, and no
event which, after notice or lapse of time or both, would become an Event of Default, shall
have occurred and be continuing; and

     (d) the Issuers have delivered to the Trustee an Officer’s Certificate and an Opinion
of Counsel, each stating that such consolidation, amalgamation, merger, conveyance, sale,
assignment, transfer, lease or other disposition and such supplemental indenture comply with
this Article Eight and that all conditions precedent herein provided for relating to such
transaction have been complied with.

Section 8.2. Successor Substituted.

     Upon any consolidation, amalgamation or merger of an Issuer with or into any other Person or
any sale, assignment, transfer, conveyance, lease or other disposition of all or substantially all
of its properties and assets and, if applicable, the Guarantors on a consolidated basis in
accordance with Section 8.1, the successor or resulting Person formed by or resulting upon such
consolidation, amalgamation or merger (if other than such Issuer) or to which such sale,
assignment, transfer, conveyance, lease or other disposition is made shall succeed to, and be
substituted for, and may exercise every right and power of, such Issuer under this Indenture with
the same effect as if such successor Person had been named herein as the respective Issuer party to
this Indenture, and thereafter, except in the case of a lease, the predecessor entity and, if
applicable, each of the Guarantors shall be relieved of all obligations and covenants under this
Indenture and the Securities.

ARTICLE NINE

AMENDMENT, SUPPLEMENT AND WAIVER

Section 9.1. Without Consent of Holders.

     The Issuers, the Guarantors, if any, and the Trustee may amend or supplement this Indenture,
the Securities Guarantee or the Securities without the consent of any holder of a Security:

     (a) to cure any ambiguity or defect or to correct or supplement any provision herein
that may be inconsistent with any other provision herein; or

     (b) to evidence the succession of another Person to either of the Issuers and the
assumption by any such successor of the covenants of such predecessor Issuer herein and, to
the extent applicable, of the Securities; or

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

     (d) to add a Securities Guarantee and cause any Person to become a Guarantor, and/or to
evidence the succession of another Person to a Guarantor and the assumption by any such
successor of the Securities Guarantee of such Guarantor herein and, to the extent
applicable, endorsed upon any Securities of any series; or

52

 

     (e) to secure the Securities of any series; or

     (f) to add to the covenants of the Issuers such further covenants, restrictions,
conditions or provisions as the Issuers shall consider to be appropriate for the benefit of
the Holders of all or any series of Securities (and if such covenants, restrictions,
conditions or provisions are to be for the benefit of less than all series of Securities,
stating that such covenants are expressly being included solely for the benefit of such
series), to make the occurrence, or the occurrence and continuance, of a Default in any such
additional covenants, restrictions, conditions or provisions an Event of Default permitting
the enforcement of all or any of the several remedies provided in this Indenture as herein
set forth, or to surrender any right or power herein conferred upon the Issuers; provided,
that in respect of any such additional covenant, restriction, condition or provision such
amendment or supplemental indenture may provide for a particular period of grace after
default (which period may be shorter or longer than that allowed in the case of other
defaults), may provide for an immediate enforcement upon such an Event of Default, may limit
the remedies available to the Trustee upon such an Event of Default or may limit the right
of the Holders of a majority in aggregate principal amount of the Securities of such series
to waive such an Event of Default; or

     (g) to make any change to any provision of this Indenture that does not adversely
affect the rights or interests of any Holder of Securities; or

     (h) to provide for the issuance of additional Securities in accordance with the
provisions set forth in this Indenture; or

     (i) to add any additional Defaults or Events of Default in respect of all or any series
of Securities; or

     (j) to add to, change or eliminate any of the provisions of this Indenture to such
extent as shall be necessary to permit or facilitate the issuance of Securities in bearer
form, registrable or not registrable as to principal, and with or without interest coupons;
or

     (k) to change or eliminate any of the provisions of this Indenture; provided that any
such change or elimination shall become effective only when there is no Security Outstanding
of any series created prior to the execution of such amendment or supplemental indenture
that is entitled to the benefit of such provision; or

     (l) to establish the form or terms of Securities of any series as permitted by Section
2.1 and Section 3.1, including to reopen any series of any Securities as permitted under
Section 3.1; or

     (m) to evidence and provide for the acceptance of appointment hereunder by a successor
Trustee with respect to the Securities of one or more series and to add to or change any of
the provisions of this Indenture as shall be necessary to provide for or facilitate the
administration of the trusts hereunder by more than one Trustee, pursuant to the
requirements of Section 6.11(b); or

     (n) to conform the text of this Indenture (and/or any supplemental indenture) or any
Securities issued thereunder to any provision of a description of such text or Securities
appearing in a prospectus, prospectus supplement, offering memorandum or offering circular
relating to the sale thereof to the extent that such provision was intended by the Issuers
to be a verbatim recitation of a provision of this Indenture (and/or any supplemental
indenture) or any Securities issued thereunder, with such intention being evidenced by an
Officer’s Certificate; or

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     (o) to modify, eliminate or add to the provisions of this Indenture to such extent as
shall be necessary to effect the qualification of this Indenture under the Trust Indenture
Act or under any similar federal statute subsequently enacted, and to add to this Indenture
such other provisions as may be expressly required under the Trust Indenture Act.

Section 9.2. With Consent of Holders.

     The Issuers, the Guarantors, if any, and the Trustee may amend or supplement this Indenture,
the Securities Guarantee and the Securities with the consent of the Holders of a majority in
aggregate principal amount of the Outstanding Securities of each series of Securities affected by
such amendment or supplemental indenture, with each such series voting as a separate class
(including, without limitation, consents obtained in connection with a purchase of, or tender offer
or exchange offer for, Securities) and, subject to Section 5.8 and Section 5.13 hereof, any
existing Default or Event of Default or compliance with any provision of this Indenture, the
Securities Guarantee or the Securities may be waived with respect to each series of Securities with
the consent of the Holders of a majority in aggregate principal amount of the Outstanding
Securities of such series voting as a separate class (including consents obtained in connection
with a purchase of, or tender offer or exchange offer for, Securities).

     It is not necessary for the consent of the Holders of Securities under this Section 9.2 to
approve the particular form of any proposed amendment, supplement or waiver, but it is sufficient
if such consent approves the substance of the proposed amendment, supplement or waiver.

     After an amendment, supplement or waiver under this Section 9.2 becomes effective, the Issuers
will mail to the Holders of Securities affected thereby a notice briefly describing the amendment,
supplement or waiver. Any failure of the Issuers to mail such notice, or any defect therein, will
not, however, in any way impair or affect the validity of any such amendment, supplemental
indenture or waiver. Notwithstanding anything contained herein to the contrary, without the
consent of each Holder affected, an amendment, supplement or waiver under this Section 9.2 may not
(with respect to any Securities held by a non-consenting Holder):

     (a) change the Stated Maturity of the principal of, or any installment of principal of
or interest on, any Security, or reduce the principal amount thereof or the rate of interest
thereon or any premium payable upon the redemption thereof, or reduce the amount of the
principal of an Original Issue Discount Security that would be due and payable upon a
declaration of acceleration of the Maturity thereof pursuant to Section 5.2, or change the
coin or currency in which any Security or any premium or the interest thereon is payable, or
impair the right to institute suit for the enforcement of any such payment on or after the
Stated Maturity thereof (or, in the case of redemption, on or after the Redemption Date); or

     (b) reduce the percentage in aggregate principal amount of the Outstanding Securities
of any series, the consent of the Holders of which is required for any such amendment or
supplemental indenture, or the consent of the Holders of which is required for any waiver of
compliance with certain provisions of this Indenture or certain defaults hereunder and their
consequences provided for in this Indenture; or

     (c) modify any of the provisions of Section 5.8 or Section 5.13; or

     (d) waive a redemption payment with respect to any Security; provided, however, that
any purchase or repurchase of Securities shall not be deemed a redemption of the Securities;
or

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     (e) release any Guarantor from any of its obligations under its Securities Guarantee or
this Indenture, except in accordance with the terms of this Indenture (as amended or
supplemented); or

     (f) make any change in the foregoing amendment and waiver provisions, except to
increase any percentage provided for therein or to provide that certain other provisions of
this Indenture cannot be modified or waived without the consent of the Holder of each
Outstanding Security affected thereby.

     An amendment or supplemental indenture that changes or eliminates any covenant or other
provision of this Indenture that has expressly been included solely for the benefit of one or more
particular series of Securities, or that modifies the rights of the Holders of Securities of such
series with respect to such covenant or other provision, shall be deemed not to affect the rights
under this Indenture of the Holders of Securities of any other series.

Section 9.3. Execution of Amendments and Supplemental Indentures.

     In executing, or accepting the additional trusts created by, any amendment or supplemental
indenture permitted by this Article or the modifications thereby of the trusts created by this
Indenture, the Trustee shall be entitled to receive, and (subject to Section 6.1) shall be fully
protected in relying upon, an Opinion of Counsel stating that the execution of such amendment or
supplemental indenture is authorized or permitted by this Indenture.

     Upon the request of the Issuers accompanied by respective Board Resolutions authorizing the
execution of any such amendment or supplemental indenture, and upon the filing with the Trustee of
evidence satisfactory to the Trustee of the consent of the Holders of Securities as aforesaid, and
upon receipt by the Trustee of the documents described in Section 6.3 hereof, the Trustee will join
with the Issuers and the Guarantors in the execution of such amendment or supplemental indenture
unless such amendment or supplemental indenture directly affects the Trustee’s own rights, duties
or immunities under this Indenture or otherwise, in which case the Trustee may in its discretion,
but will not be obligated to, enter into such amendment or supplemental Indenture.

Section 9.4. Effect of Amendments and Supplemental Indentures.

     Upon the execution of any amendment or supplemental indenture under this Article Nine, this
Indenture shall be modified in accordance therewith, and such amendment or supplemental indenture
shall form a part of this Indenture for all purposes; and every Holder of Securities theretofore or
thereafter authenticated and delivered hereunder shall be bound thereby.

Section 9.5. Conformity with Trust Indenture Act.

     Every amendment or supplemental indenture executed pursuant to this Article Nine shall conform
to the requirements of the Trust Indenture Act as then in effect.

Section 9.6. Reference in Securities to Amendments or Supplemental Indentures.

     Securities of any series authenticated and delivered after the execution of any amendment or
supplemental indenture pursuant to this Article Nine may, and shall if required by the Trustee,
bear a notation in form approved by the Trustee as to any matter provided for in such amendment or
supplemental indenture. If the Issuers shall so determine, new Securities of any series so
modified as to conform, in the opinion of the Trustee and the Issuers, to any such amendment or
supplemental indenture

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may be prepared and executed by the Issuers and authenticated and delivered
by the Trustee in exchange for Outstanding Securities of such series.

ARTICLE TEN

COVENANTS

Section 10.1. Payment of Principal, Premium and Interest.

     The Issuers, for the benefit of each series of Securities, will duly and punctually pay the
principal of and any premium and interest on the Securities of that series in accordance with the
terms of the Securities and this Indenture.

Section 10.2. Maintenance of Office or Agency.

     The Issuers will maintain in the United States an office or agency (which may be an office of
the Trustee or Security Registrar or agent of the Trustee or Security Registrar) where Securities
of each series may be presented or surrendered for payment and surrendered for registration of
transfer or exchange and where notices and demands to or upon the Issuers in respect of the
Securities of that series and this Indenture may be served. The Issuers will give prompt written
notice to the Trustee of the location, and any change in the location, of such office or agency.
If at any time the Issuers shall fail to maintain any such required office or agency or shall fail
to furnish the Trustee with the address thereof, such presentations, surrenders, notices and
demands may be made or served at the Corporate Trust Office of the Trustee.

     The Issuers may also from time to time designate one or more other offices or agencies where
the Securities of one or more series may be presented or surrendered for any or all such purposes
and may from time to time rescind such designations. The Issuers will give prompt written notice to
the Trustee of any such designation or rescission and of any change in the location of any such
other office or agency.

     Except as otherwise specified with respect to a series of Securities as contemplated by
Section 3.1, the Issuers hereby initially designates the Corporate Trust Office of the Trustee as
the Issuers’ office or agency for each such purpose for each series of Securities. The Trustee
shall initially serve as Paying Agent. In the event the Issuers make any payment in any currency
in which the Trustee is unable to pay, and notwithstanding anything herein to the contrary, the
Issuers will appoint a Paying Agent other than the Trustee to make such payment and the Trustee
will have no obligations with respect to such payment and will incur no liability with respect to
the failure by the Issuers or such other Paying Agent to make, or cause to be made, such payment.

Section 10.3. Money for Securities Payments to Be Held in Trust.

     If the Issuers shall at any time act as their own Paying Agent, with respect to any series of
Securities, it will, on or before each due date of the principal of or any premium or interest on
any of the Securities of that series, segregate and hold in trust for the benefit of the Persons
entitled thereto a sum sufficient to pay the principal and any premium and interest so becoming due
until such sums shall be paid to such Persons or otherwise disposed of as herein provided and will
promptly notify the Trustee of its action or failure so to act.

     Whenever the Issuers shall have one or more Paying Agents for any series of Securities, it
will, prior to each due date of the principal of or any premium or interest on any Securities of
that series, deposit with a Paying Agent a sum sufficient to pay the principal and any premium or
interest so becoming due, such sum to be held in trust for the benefit of the Persons entitled to
such principal,

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premium or interest, and (unless such Paying Agent is the Trustee) the Issuers will
promptly notify the Trustee of its action or failure so to act. For purposes of this Section 10.3,
should a due date for principal of or any premium or interest on, or sinking fund payment with
respect to any series of Securities not be on a Business Day, such payment shall be due on the next
Business Day without any interest for the period from the due date until such Business Day.

     The Issuers will cause each Paying Agent for any series of Securities other than the Trustee
to execute and deliver to the Trustee an instrument in which such Paying Agent shall agree with the
Trustee, subject to the provisions of this Section, that such Paying Agent will:

     (a) hold all sums held by it for the payment of the principal of or any premium or
interest on Securities of that series in trust for the benefit of the Persons entitled
thereto until such sums shall be paid to such Persons or otherwise disposed of as herein
provided;

     (b) give the Trustee notice of any Default by the Issuers (or any other obligor upon
the Securities of that series) in the making of any payment of principal or any premium or
interest on the Securities of that series; and

     (c) at any time during the continuance of any such Default, upon the written request of
the Trustee, forthwith pay to the Trustee all sums so held in trust by such Paying Agent.

     The Issuers and, if applicable, the Guarantors may at any time, for the purpose of obtaining
the satisfaction and discharge of this Indenture or for any other purpose, pay, or by Issuer Order
direct any Paying Agent to pay, to the Trustee all sums held in trust by the Issuers or such Paying
Agent, such sums to be held by the Trustee upon the same trusts as those upon which such sums were
held by the Issuers or such Paying Agent; and, upon such payment by any Paying Agent to the
Trustee, such Paying Agent shall be released from all further liability with respect to such money.

     Subject to any applicable escheat or abandoned property laws, any money deposited with the
Trustee or any Paying Agent, or then held by the Issuers, in trust for the payment of the principal
of or any premium or interest on any Security of any series and remaining unclaimed for one year
after such principal, premium or interest has become due and payable shall be paid to the Company
on Issuer Request, or (if then held by the Issuers) shall be discharged from such trust; and the
Holder of such Security shall thereafter, as an unsecured general creditor, look only to the
Company for payment thereof, and all liability of the Trustee or such Paying Agent with respect to
such trust money, and all liability of the Issuers as trustee thereof, shall thereupon cease;
provided, however, that the Trustee or such Paying
Agent, before being required to make any such repayment, may at the expense of the Issuers
cause to be published once, in The New York Times and The Wall Street Journal (national edition),
notice that such money remains unclaimed and that, after a date specified therein, which shall not
be less than 30 days from the date of such publication, any unclaimed balance of such money then
remaining will be repaid to the Company.

Section 10.4. Existence.

     Subject to Article Eight, the Issuers and, if any Securities of a series to which Article
Fourteen has been made applicable are Outstanding, each Guarantor will do or cause to be done all
things necessary to preserve and keep in full force and effect its existence, rights (charter and
statutory) and franchises; provided, however, that each Issuer and, if applicable, each Guarantor
shall not be required to preserve any such right or franchise if its Board of Directors shall
determine that the preservation thereof is no longer desirable in the conduct of the business of
such Issuer or such Guarantor, as the case may be.

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Section 10.5. Statement by Officers as to Default.

     Annually, within 120 days after the close of each fiscal year beginning with the first fiscal
year during which one or more series of Securities are Outstanding, each of the Issuers and, if any
Securities of a series to which Article Fourteen has been made applicable are Outstanding, each
Guarantor will deliver to the Trustee a brief certificate (which need not include the statements
set forth in Section 1.3) from the principal executive officer, principal financial officer or
principal accounting officer of such Issuer and, if applicable, such Guarantor, stating that a
review of the activities of the Issuers during such year and of performance under this Indenture
has been made, and as to his or her knowledge of such Issuer’s or such Guarantor’s, as the case
may be, compliance (without regard to any period of grace or requirement of notice provided herein)
with all conditions and covenants under this Indenture and, if such Issuer or such Guarantor, as
the case may be, shall be in Default, specifying all such Defaults and the nature and status
thereof of which such officer has knowledge.

ARTICLE ELEVEN

REDEMPTION OF SECURITIES

Section 11.1. Applicability of Article.

     Securities of any series which are redeemable before their Stated Maturity shall be redeemable
in accordance with their terms and (except as otherwise specified as contemplated by Section 3.1
for Securities of any series) in accordance with this Article Eleven.

Section 11.2. Election to Redeem; Notice to Trustee.

     The election of the Issuers to redeem any Securities shall be evidenced by respective Board
Resolutions. In case of any redemption at the election of the Issuers of less than all the
Securities of any series, the Issuers shall, at least 15 days prior to the last date for the giving
of notice of such redemption
(unless a shorter notice shall be satisfactory to the Trustee), notify the Trustee of such
Redemption Date and of the principal amount of Securities of such series to be redeemed and, if
applicable, of the tenor of the Securities to be redeemed. In the case of any redemption of
Securities (a) prior to the expiration of any restriction on such redemption provided in the terms
of such Securities or elsewhere in this Indenture or (b) pursuant to an election of the Issuers
that is subject to a condition specified in the terms of the Securities of the series to be
redeemed, the Issuers shall furnish the Trustee with an Officer’s Certificate evidencing compliance
with such restriction or condition.

Section 11.3. Selection by Trustee of Securities to Be Redeemed.

     If less than all the Securities of any series are to be redeemed (unless all of the Securities
of such series and of a specified tenor are to be redeemed), the particular Securities to be
redeemed shall be selected not more than 45 days prior to the Redemption Date by the Trustee, from
the Outstanding Securities of such series not previously called for redemption, by such method as
the Trustee shall deem fair and appropriate and which may provide for the selection for redemption
of portions (equal to the minimum authorized denomination for Securities of that series or any
integral multiple thereof) of the principal amount of Securities of such series of a denomination
larger than the minimum authorized denomination for Securities of that series.

     The Trustee shall promptly notify the Issuers in writing of the Securities selected for
redemption and, in the case of any Securities selected for partial redemption, the principal amount
thereof to be redeemed. If the Securities of any series to be redeemed consist of Securities
having different dates on which the principal is payable or different rates of interest, or
different methods by which interest may be

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determined or have any other different tenor or terms,
then the Issuers may, by written notice to the Trustee, direct that the Securities of such series
to be redeemed shall be selected from among the groups of such Securities having specified tenor or
terms and the Trustee shall thereafter select the particular Securities to be redeemed in the
manner set forth in the preceding paragraph from among the group of such Securities so specified.

     For all purposes of this Indenture, unless the context otherwise requires, all provisions
relating to the redemption of Securities shall relate, in the case of any Securities redeemed or to
be redeemed only in part, to the portion of the principal amount of such Securities which has been
or is to be redeemed.

Section 11.4. Notice of Redemption.

     Notice of redemption shall be given by first-class mail, postage prepaid, mailed not less than
30 nor more than 60 days prior to the Redemption Date, to each Holder of Securities to be redeemed,
at such Holder’s address appearing in the Security Register.

     All notices of redemption shall state:

     (a) the Redemption Date;

     (b) the Redemption Price, or if not then ascertainable, the manner of calculation
thereof;

     (c) if less than all the Outstanding Securities of any series are to be redeemed, the
identification (and, in the case of partial redemption, the principal amounts) of the
particular Securities to be redeemed;

     (d) that on the Redemption Date the Redemption Price will become due and payable upon
each such Security to be redeemed and, if applicable, that interest thereon will cease to
accrue on and after said date;

     (e) the place or places where such Securities are to be surrendered for payment of the
Redemption Price; and

     (f) that the redemption is for a sinking fund, if such is the case.

Notice of redemption of Securities to be redeemed at the election of the Issuers shall be given by
the Issuers or, at the Issuers’ request, by the Trustee in the name and at the expense of the
Issuers.

Section 11.5. Deposit of Redemption Price.

     Prior to any Redemption Date, the Issuers shall deposit with the Trustee or with a Paying
Agent (or, if either of the Issuers are acting as a Paying Agent, segregate and hold in trust as
provided in Section 10.3) an amount of money sufficient to pay the Redemption Price of, and (except
if the Redemption Date shall be an Interest Payment Date) accrued interest on, all the Securities
which are to be redeemed on that date.

Section 11.6. Securities Payable on Redemption Date.

     Notice of redemption having been given as aforesaid, the Securities so to be redeemed shall,
on the Redemption Date, become due and payable at the Redemption Price therein specified, and from
and after such date (unless the Issuers shall default in the payment of the Redemption Price and
accrued

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interest) such Securities shall cease to bear interest. Upon surrender of any such
Security for redemption in accordance with said notice, such Security shall be paid by the Issuers
at the Redemption Price, together with accrued interest to the Redemption Date; provided, however,
that unless otherwise specified with respect to Securities of any series as contemplated in Section
3.1, installments of interest the Stated Maturity of which is on or prior to the Redemption Date
shall be payable to the Holders of such Securities, or one or more Predecessor Securities,
registered as such at the close of business on the relevant record dates according to their terms
and the provisions of Section 3.7.

     If any Security called for redemption shall not be so paid upon surrender thereof for
redemption, the principal (and premium, if any) shall, until paid, bear interest from the
Redemption Date at the rate prescribed therefor in the Security.

Section 11.7. Securities Redeemed in Part.

     Any Security which is to be redeemed only in part shall be surrendered at a Place of Payment
therefor (with, if the Issuers or the Trustee so requires, due endorsement by, or a written
instrument of
transfer in form satisfactory to the Issuers and the Trustee duly executed by, the Holder
thereof or such Holder’s attorney duly authorized in writing), and the Issuers shall execute, and
the Trustee shall authenticate and deliver to the Holder of such Security without service charge, a
new Security or Securities of the same series and tenor, of any authorized denomination as
requested by such Holder, in aggregate principal amount equal to and in exchange for the unredeemed
portion of the principal of the Security so surrendered.

ARTICLE TWELVE

SINKING FUNDS

Section 12.1. Applicability of Article.

     The provisions of this Article Twelve shall be applicable to any sinking fund for the
retirement of Securities of a series except as otherwise specified as contemplated by Section 3.1
for Securities of such series.

     The minimum amount of any sinking fund payment provided for by the terms of Securities of any
series is herein referred to as a “mandatory sinking fund payment,” and any payment in excess of
such minimum amount provided for by the terms of Securities of any series is herein referred to as
an “optional sinking fund payment.” If provided for by the terms of Securities of any series, the
cash amount of any sinking fund payment may be subject to reduction as provided in Section 12.2.
Each sinking fund payment shall be applied to the redemption of Securities of any series as
provided for by the terms of Securities of such series.

Section 12.2. Satisfaction of Sinking Fund Payments with Securities.

     The Issuers (a) may deliver Outstanding Securities of a series (other than any previously
called for redemption) and (b) may apply as a credit Securities of a series which have been
redeemed either at the election of the Issuers pursuant to the terms of such Securities or through
the application of permitted optional sinking fund payments pursuant to the terms of such
Securities, in each case in satisfaction of all or any part of any sinking fund payment with
respect to the Securities of such series required to be made pursuant to the terms of such
Securities as provided for by the terms of such series; provided that such Securities have not been
previously so credited. Such Securities shall be received and credited for such purpose by the
Trustee at the Redemption Price specified in such Securities for redemption through operation of
the sinking fund and the amount of such sinking fund payment shall be reduced accordingly.

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Section 12.3. Redemption of Securities for Sinking Fund.

     Not less than 45 days prior to each sinking fund payment date for any series of Securities
(unless a shorter period shall be satisfactory to the Trustee), the Issuers will deliver to the
Trustee an Officer’s Certificate specifying the amount of the next ensuing sinking fund payment for
that series pursuant to the terms of that series, the portion thereof, if any, which is to be
satisfied by payment of cash and the portion thereof, if any, which is to be satisfied by
delivering and crediting Securities of that series pursuant to Section 12.2 and stating the basis
for such credit and that such Securities have not been previously so credited, and will also
deliver to the Trustee any Securities to be so delivered. Not less than 30 days
before each such sinking fund payment date the Trustee shall select the Securities to be
redeemed upon such sinking fund payment date in the manner specified in Section 11.3 and cause
notice of the redemption thereof to be given in the name of and at the expense of the Issuers in
the manner provided in Section 11.4. Such notice having been duly given, the redemption of such
Securities shall be made upon the terms and in the manner stated in Section 11.6 and Section 11.7.

ARTICLE THIRTEEN

DEFEASANCE

Section 13.1. Option to Effect Legal Defeasance or Covenant Defeasance.

     The Issuers may, at the option of each of their Board of Directors evidenced by respective
Board Resolutions, and at any time, elect to have either Section 13.2 or Section 13.3 hereof be
applied to all Outstanding Securities of any series upon compliance with the conditions set forth
below in this Article Thirteen.

Section 13.2. Legal Defeasance and Discharge.

     Upon the Issuers’ exercise under Section 13.1 hereof of the option applicable to this Section
13.2, each of the Issuers and each of the Guarantors will, subject to the satisfaction of the
conditions set forth in Section 13.4 hereof, be deemed to have been discharged from their
obligations with respect to all Outstanding Securities of such series (including the Securities
Guarantee) on the date the conditions set forth below are satisfied (hereinafter, “Legal
Defeasance”). For this purpose, Legal Defeasance means that the Issuers and the Guarantors will be
deemed to have paid and discharged the entire Debt represented by the Outstanding Securities of
such series (including the Securities Guarantee), which will thereafter be deemed to be
“outstanding” only for the purposes of Section 13.5 hereof and the other sections of this Indenture
referred to in clauses (a) and (b) below, and to have satisfied all their other obligations under
such Securities, the Securities Guarantee and this Indenture (and the Trustee, on demand of and at
the expense of the Issuers, shall execute proper instruments acknowledging the same), except for
the following provisions which will survive until otherwise terminated or discharged hereunder:

     (a) the rights of Holders of Outstanding Securities of such series to receive payments
in respect of the principal of, or interest or premium, if any, on, such Securities when
such payments are due from the trust referred to in Section 13.4 hereof;

     (b) the Issuers’ obligations with respect to such Securities under Section 3.4, Section
3.5, Section 3.6, Section 10.2 and Section 10.3 hereof;

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     (c) the rights, powers, trusts, duties and immunities of the Trustee hereunder and the
Issuers’ and the Guarantors’ obligations in connection therewith; and

     (d) this Article Thirteen.

     Subject to compliance with this Article Thirteen, the Issuers may exercise their option under
this Section 13.2 notwithstanding the prior exercise of their option under Section 13.3 hereof with
respect to the same series of Securities.

Section 13.3. Covenant Defeasance.

     Upon the Issuers’ exercise under Section 13.1 hereof of the option applicable to this Section
13.3, each of the Issuers and each of the Guarantors will, subject to the satisfaction of the
conditions set forth in Section 13.4 hereof, be released from each of their obligations respecting
the Securities of such series under the covenants contained in Section 8.1 and Section 10.4 hereof
as well as any Additional Defeasible Provisions (such release and termination hereinafter referred
to as “Covenant Defeasance”), and the Securities of such series will thereafter be deemed not
“outstanding” for the purposes of any direction, waiver, consent or declaration or act of Holders
(and the consequences of any thereof) in connection with such covenants, but will continue to be
deemed “outstanding” for all other purposes hereunder (it being understood that such Securities
will not be deemed outstanding for accounting purposes to the extent permitted by GAAP). For this
purpose, Covenant Defeasance means that, with respect to the Outstanding Securities of such series
and the Securities Guarantee, the Issuers and the Guarantors may fail to comply with and will have
no liability in respect of any term, condition or limitation set forth in any such covenant,
whether directly or indirectly, by reason of any reference elsewhere herein to any such covenant or
by reason of any reference in any such covenant to any other provision herein or in any other
document and such failure to comply will not constitute a Default or an Event of Default under
Section 5.1 hereof, but, except as specified above, the remainder of this Indenture and such
Securities and Securities Guarantee will be unaffected thereby. In addition, upon the Issuers’
exercise under Section 13.1 hereof of the option applicable to this Section 13.3 hereof, subject to
the satisfaction of the conditions set forth in Section 13.4 hereof, any Event of Default that
constitutes an Additional Defeasible Provision will no longer constitute an Event of Default.

Section 13.4. Conditions to Legal or Covenant Defeasance.

     In order to exercise either Legal Defeasance or Covenant Defeasance with respect to any series
of Securities under either Section 13.2 or Section 13.3 hereof:

     (a) the Issuers must irrevocably deposit with the Trustee, in trust, for the benefit of
the Holders of the Securities of such series, cash in U.S. dollars, non-callable U.S.
Government Obligations, or a combination of cash in U.S. dollars and non-callable U.S.
Government Obligations, in such amounts as will be sufficient, in the opinion of a
nationally recognized investment bank, appraisal firm, or firm of independent public
accountants, to pay the principal of, and interest and premium, if any, on, the Outstanding
Securities of such series on the stated date for payment thereof or on the applicable
redemption date, as the case may be, and the Issuers must specify whether the Securities are
being defeased to such stated date for payment or to a particular redemption date;

     (b) in the case of an election under Section 13.2 hereof, the Issuers must deliver to
the Trustee an Opinion of Counsel stating that:

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     (i) the Issuers have received from, or there has been published by, the
Internal Revenue Service a ruling; or

     (ii) since the Issue Date, there has been a change in the applicable federal
income tax law,

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

     (c) in the case of an election under Section 13.3 hereof, the Issuers must deliver to
the Trustee an Opinion of Counsel stating that the Holders of the Outstanding Securities of
such series will not recognize income, gain or loss for federal income tax purposes as a
result of such Covenant Defeasance and will be subject to federal income tax on the same
amounts, in the same manner and at the same times as would have been the case if such
Covenant Defeasance had not occurred;

     (d) no Default or Event of Default respecting such series of Securities shall have
occurred and be continuing on the date of such deposit (other than a Default or Event of
Default resulting from the borrowing of funds to be applied to such deposit);

     (e) the deposit must not result in a breach or violation of, or constitute a default
under, any other instrument to which either Issuer or any Guarantor is a party or by which
either Issuer or any Guarantor is bound;

     (f) such Legal Defeasance or Covenant Defeasance must not result in a breach or
violation of, or constitute a default under, any material agreement or instrument (other
than this Indenture) to which either Issuer or any of its Subsidiaries is a party or by
which either Issuer or any of its Subsidiaries is bound;

     (g) the Issuers must deliver to the Trustee an Officer’s Certificate stating that the
deposit was not made by the Issuers with the intent of preferring the Holders of Securities
of such series over the other creditors of the Issuers with the intent of defeating,
hindering, delaying or defrauding any other creditors of the Issuers or others;

     (h) the Issuers must deliver to the Trustee an Officer’s Certificate stating that all
conditions precedent set forth in clauses (a) through (f) of this Section 13.4 have been
complied with; and

     (i) the Issuers must deliver to the Trustee an Opinion of Counsel (which Opinion of
Counsel may be subject to customary assumptions, qualifications and exclusions) stating that
all conditions precedent set forth in clauses (b), (c) and (f) of this Section 13.4 have
been complied with.

Section 13.5. Deposited Money and U.S. Government Obligations to be Held in Trust, Other
Miscellaneous Provisions.

     Subject to the last paragraph of Section 10.3 hereof, all money and non-callable U.S.
Government Obligations (including the proceeds thereof) deposited with the Trustee (or other
qualifying trustee,

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collectively for purposes of this Section 13.5, the “Trustee”) pursuant to
Section 13.4 hereof in respect of the Outstanding Securities of any series will be held in trust
and applied by the Trustee, in accordance with the provisions of such Securities and this
Indenture, to the payment, either directly or through any Paying Agent (including either of the
Issuers acting as a Paying Agent) as the Trustee may determine, to

the Holders of such Securities of all sums due and to become due thereon in respect of
principal, premium, if any, and interest, but such money need not be segregated from other funds
except to the extent required by law.

     The Issuers will pay and indemnify the Trustee against any tax, fee or other charge imposed on
or assessed against the cash or non-callable U.S. Government Obligations deposited pursuant to
Section 13.4 hereof or the principal and interest received in respect thereof other than any such
tax, fee or other charge which by law is for the account of the Holders of such Outstanding
Securities.

     Notwithstanding anything in this Article Thirteen to the contrary, the Trustee will deliver or
pay to the Issuers from time to time upon the request of the Issuers any money or non-callable U.S.
Government Obligations held by it as provided in Section 13.4 hereof which, in the opinion of a
nationally recognized investment bank, appraisal firm or firm of independent public accountants
expressed in a written certification thereof delivered to the Trustee (which may be the opinion
delivered under Section 13.4(a) hereof), are in excess of the amount thereof that would then be
required to be deposited to effect an equivalent Legal Defeasance or Covenant Defeasance.

Section 13.6. Reinstatement.

     If the Trustee or Paying Agent is unable to apply any United States dollars or non-callable
U.S. Government Obligations in accordance with Section 4.1, Section 13.2 or Section 13.3 hereof
with respect to the Securities of any series, as the case may be, by reason of any order or
judgment of any court or governmental authority enjoining, restraining or otherwise prohibiting
such application, then the Issuers’ and the Guarantors’ obligations under this Indenture and such
Securities and the Securities Guarantee will be revived and reinstated as though no deposit had
occurred pursuant to Section 4.1, Section 13.2 or Section 13.3 hereof until such time as the
Trustee or Paying Agent is permitted to apply all such money or non-callable U.S. Government
Obligations in accordance with Section 4.1, Section 13.2 or Section 13.3 hereof, as the case may
be; provided, however, that, if the Issuers make any payment of principal of or premium, if any, or
interest on any such Security following the reinstatement of its obligations, the Issuers will be
subrogated to the rights of the Holders of such Securities to receive such payment from the money
or non-callable U.S. Government Obligations held by the Trustee or Paying Agent.

ARTICLE FOURTEEN

GUARANTEE OF SECURITIES

Section 14.1. Securities Guarantee.

     (a) Subject to the other provisions of this Article Fourteen, each of the Guarantors
hereby fully and unconditionally and jointly and severally guarantees to each Holder of a
Security of each series to which this Article Fourteen has been made applicable as provided
in Section 3.1(t) (the Securities of such series being referred to herein as the “Guaranteed
Securities”) (which Security has been authenticated and delivered by the Trustee), and to
the Trustee and its successors and assigns, irrespective of the validity and enforceability
of this Indenture, the Guaranteed Securities, or the obligations of the Issuers hereunder or
thereunder, that:

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     (i) the principal of and premium, if any, and interest on the Guaranteed
Securities will be promptly paid in full when due, whether at Stated Maturity, or by
acceleration, redemption or otherwise, and interest on the overdue principal of
and interest on the Guaranteed Securities, if any, if lawful, and all other
obligations of the Issuers to the Holders of Guaranteed Securities, or the Trustee
hereunder or thereunder, will be promptly paid in full or performed, all in
accordance with the terms hereof and thereof; and

     (ii) in case of any extension of time of payment or renewal of any Guaranteed
Securities or any of such other obligations, that same will be promptly paid in full
when due or performed in accordance with the terms of the extension or renewal,
whether at Stated Maturity, by acceleration or otherwise.

Failing payment when due of any amount so guaranteed or any performance so guaranteed for
whatever reason, the Guarantors will be jointly and severally obligated to pay the same
immediately. Each Guarantor agrees that this is a guarantee of payment and not a guarantee
of collection.

     (b) To the extent permissible under applicable law, the obligations of the Guarantors
under this Securities Guarantee are unconditional, irrespective of the validity, regularity
or enforceability of the Guaranteed Securities or this Indenture, the absence of any action
to enforce the same, any waiver or consent by any Holder of the Guaranteed Securities with
respect to any provisions hereof or thereof, the recovery of any judgment against the
Issuers, any action to enforce the same or any other circumstance which might otherwise
constitute a legal or equitable discharge or defense of a guarantor. To the extent
permitted by applicable law, each Guarantor hereby waives diligence, presentment, demand of
payment, filing of claims with a court in the event of insolvency or bankruptcy of either of
the Issuers, any right to require a proceeding first against either of the Issuers, protest,
notice and all demands whatsoever and covenants that this Securities Guarantee will not be
discharged except by complete performance of the obligations contained in the Guaranteed
Securities and this Indenture.

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

     (d) Each Guarantor agrees that it will not be entitled to any right of subrogation in
relation to the Holders in respect of any obligations guaranteed hereby until payment in
full of all obligations guaranteed hereby. Each Guarantor further agrees that, to the
extent permitted by applicable law, as between the Guarantors, on the one hand, and the
Holders of Guaranteed Securities and the Trustee, on the other hand, (i) the maturity of the
obligations guaranteed hereby may be accelerated as provided in Article Five hereof for the
purposes of this Securities Guarantee, notwithstanding any stay, injunction or other
prohibition preventing such acceleration in respect of the obligations guaranteed hereby,
and (ii) in the event of any declaration of acceleration of such obligations as provided in
Article Five hereof, such obligations (regardless of whether due and payable) will forthwith
become due and payable by the Guarantors for the purpose of this Securities Guarantee. The
Guarantors will have the right to seek contribution from any non-paying Guarantor so long as
the exercise of such right does not impair the rights of the Holders under the Securities
Guarantee.

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Section 14.2. Limitation on Guarantor Liability.

     Each Guarantor and, by its acceptance of Guaranteed Securities, each Holder thereof, hereby
confirm that it is the intention of all such parties that the Securities Guarantee of such
Guarantor not constitute a fraudulent transfer or conveyance for purposes of Bankruptcy Law, the
Uniform Fraudulent Conveyance Act, the Uniform Fraudulent Transfer Act or any similar Federal or
State law to the extent applicable to any Securities Guarantee. To effectuate the foregoing
intention, to the extent permitted under applicable law, the Holders and each Guarantor hereby
irrevocably agree that the obligations of such Guarantor will be limited to the maximum amount that
will, after giving effect to such maximum amount and all other contingent and fixed liabilities of
such Guarantor that are relevant under such laws, and after giving effect to any collections from,
rights to receive contribution from or payments made by or on behalf of any other Guarantor in
respect of the obligations of such other Guarantor under this Article Fourteen, result in the
obligations of such Guarantor under its Securities Guarantee not constituting a fraudulent transfer
or conveyance.

Section 14.3. Execution and Delivery of Securities Guarantee Notation.

     To evidence its Securities Guarantee set forth in Section 14.1 hereof, each Guarantor hereby
agrees that a notation of such Securities Guarantee substantially in the form set forth in Section
2.3 or established in or pursuant to a Board Resolution or in an indenture supplemental hereto, in
accordance with the provisions of Section 2.1, will be endorsed by an officer of such Guarantor on
each Guaranteed Security authenticated and delivered by the Trustee and that this Indenture or a
supplement to this Indenture will be executed on behalf of such Guarantor by one of its officers.

     Each Guarantor hereby agrees that its Securities Guarantee set forth in Section 14.1 hereof
will remain in full force and effect notwithstanding any failure to endorse on each Guaranteed
Security a notation of such Securities Guarantee.

     The delivery of any Guaranteed Security by the Trustee, after the authentication thereof
hereunder, will constitute due delivery of the Securities Guarantee of such Guaranteed Security set
forth in this Indenture on behalf of the Guarantors.

ARTICLE FIFTEEN

SUBORDINATION OF SECURITIES

Section 15.1. Securities Subordinated to Senior Debt.

     Each Issuer covenants and agrees, and each Holder, by its acceptance of a Security, likewise
covenants and agrees, that all Securities shall be issued subject to the provisions of this Article
Fifteen; and each Person holding any Security, whether upon original issue or upon transfer,
assignment or exchange thereof, accepts and agrees that the payment of the principal of and
interest and premium, if any, on each and all of the Securities shall, to the extent and in the
manner set forth in this Article Fifteen, be subordinated in right of payment to the prior payment
in full, in cash or cash equivalents, of all existing and future Senior Debt.

Section 15.2. No Payment on Securities in Certain Circumstances.

     (a) No direct or indirect payment by or on behalf of the Issuers of the principal of or
interest or premium, if any, on each and all of the Securities (other than with the money,
securities or proceeds held under any defeasance trust established in accordance with this
Indenture), whether pursuant to the terms of the Securities or upon acceleration or
otherwise,

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shall be made if, at the time of such payment, there exists a default in the
payment of all or any portion of the obligations on any Designated Senior Debt and such
default shall not have been cured or waived or the benefits of this sentence waived by or on
behalf of the holders of such Senior Debt.

     (b) During the continuance of any other event of default with respect to any Designated
Senior Debt pursuant to which the maturity thereof may be accelerated, upon receipt by the
Trustee of written notice from the trustee or other representative for the holders of such
Designated Senior Debt (or the holders of at least a majority in aggregate principal amount
of such Designated Senior Debt then outstanding), no payment of the principal of or interest
or premium, if any, on each and all of the Securities (other than with the money, securities
or proceeds held under any defeasance trust established in accordance with this Indenture)
may be made by or on behalf of the Issuers upon or in respect of the Securities for a period
(a “Payment Blockage Period”) commencing on the date of receipt of such notice and ending
179 days thereafter (unless, in each case, such Payment Blockage Period has been terminated
by written notice to the Trustee from such trustee of, or other representatives for, such
holders or by payment in full in cash or cash equivalents of such Designated Senior Debt or
such event of default has been cured or waived). Not more than one Payment Blockage Period
may be commenced with respect to the Securities during any period of 360 consecutive days.
Notwithstanding anything in this Indenture to the contrary, there must be 180 consecutive
days in any 360-day period in which no Payment Blockage Period is in effect. No event of
default that existed or was continuing (it being acknowledged that any subsequent action
that would give rise to an event of default pursuant to any provision under which an event
of default previously existed or was continuing shall constitute a new event of default for
this purpose) on the date of the commencement of any Payment Blockage Period with respect to
the Designated Senior Debt initiating such Payment Blockage Period shall be, or shall be
made, the basis for the commencement of a second Payment Blockage Period by the trustee or
other representative for the holders of such Designated Senior Debt, whether or not within a
period of 360 consecutive days, unless such event of default shall have been cured or waived
for a period of not less than 90 consecutive days.

     (c) In the event that, notwithstanding the foregoing, any payment shall be received by
the Trustee or any Holder when such payment is prohibited by clause (a) or (b) above, such
payment shall be held in trust for the benefit of, and shall be paid over or delivered to,
the trustee in bankruptcy, receiver, liquidating trustee, custodian, assignee, agent or
other Persons making payment or distribution of the assets of either of the Issuers for
application to the payment of all Senior Debt remaining unpaid, or to the trustee or
trustees under any indenture pursuant to which any of such Senior Debt may have been issued,
and any excess above such amounts due and owing on Senior Debt shall be paid to the Company.

Section 15.3. Payment over of Proceeds upon Dissolution, Etc.

     (a) Upon any payment or distribution of assets or securities of either of the Issuers
of any kind or character, whether in cash, property or securities (other than with the
money, securities or proceeds held under any defeasance trust established in accordance with
this Indenture), in connection with any dissolution or winding up or total or partial
liquidation or reorganization of such Issuer, whether voluntary or involuntary, or in
bankruptcy, insolvency, receivership or other proceedings, assignment of assets for the
benefit of creditors or other marshalling of assets and liabilities of such Issuer, all
amounts due or to become due upon all Senior Debt shall first be paid in full, in cash or
cash equivalents, before the Holders or the Trustee on their behalf shall be entitled to
receive any payment by (or on behalf of) the Issuers on account of the Securities, or

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any
payment to acquire any of the Securities for cash, property or securities, or any
distribution with respect to the Securities of any cash, property or securities. Before any
payment may be made by, or on behalf of, the Issuers on any Security (other than with the
money, securities or proceeds held under any defeasance trust established in accordance with
this Indenture) in connection with any such dissolution, winding up, liquidation or
reorganization, any payment or distribution of assets or securities of either of the Issuers
of any kind or character, whether in cash, property or securities, to which the Holders or
the Trustee on their behalf would be entitled, but for the provisions of this Article
Fifteen, shall be made by the Issuers or by any receiver, trustee in bankruptcy, liquidating
trustee, agent or other similar Person making such payment or distribution, or by the
Holders or the Trustee if received by them or it, to the trustee in bankruptcy, receiver,
liquidating trustee, custodian, assignee, agent, or other Persons making payment or
distribution of the assets of such Issuer for application to the payment of all Senior Debt
remaining unpaid, or to the trustee or trustees under any indenture pursuant to which any
such Senior Debt may have been issued, to the extent necessary to pay all such Senior Debt
in full, in cash or cash equivalents, after giving effect to any concurrent payment,
distribution or provision therefor to or for the holders of such Senior Debt.

     (b) To the extent any payment of Senior Debt (whether by or on behalf of either of the
Issuers, as proceeds of security or enforcement of any right of setoff or otherwise) is
declared to be fraudulent or preferential, set aside or required to be paid to any receiver,
trustee in bankruptcy, liquidating trustee, agent or other similar Person under any
bankruptcy, insolvency, receivership, fraudulent conveyance or similar law, then if such
payment is recovered by, or paid over to, such receiver, trustee in bankruptcy, liquidating
trustee or other similar Person, the Senior Debt or part thereof originally intended to be
satisfied shall be deemed to be reinstated and outstanding as if such payment had not
occurred. To the extent the obligation to repay any Senior Debt is declared to be fraudulent
or invalid or otherwise set aside under any bankruptcy, insolvency, receivership, fraudulent
conveyance or similar law, then the obligation so declared fraudulent or invalid or
otherwise set aside (and all other amounts that would come due with respect thereto had such
obligation not been so affected) shall be deemed to be reinstated and outstanding as Senior
Debt for all purposes hereof as if such declaration or setting aside had not occurred.

     (c) In the event that, notwithstanding the provision in clause (a) above prohibiting
such payment or distribution, any payment or distribution of assets or securities of either
of the Issuers of any kind or character, whether in cash, property or securities, shall be
received by the Trustee or any Holder at a time when such payment or distribution is
prohibited by clause (a) above and before all obligations in respect of Senior Debt are paid
in full, in cash or cash equivalents, such payment or distribution shall be received and
held in trust for the benefit of, and shall be paid over or delivered to, the trustee in
bankruptcy, receiver, liquidating trustee, custodian, assignee, agent, or other Persons
making payment or distribution of the assets of such Issuer for application to the payment
of all Senior Debt remaining unpaid, or to the trustee or trustees under any indenture
pursuant to which any such Senior Debt may have been issued, after giving effect to
any concurrent payment, distribution or provision therefor to or for the holders of
such Senior Debt.

     (d) For purposes of this Section 15.3, the words “cash, property or securities” shall
not be deemed to include, so long as the effect of this clause is not to cause the
Securities to be treated in any case or proceeding or similar event described in this
Section 15.3 as part of the same class of claims as the Senior Debt or any class of claims
pari passu with, or senior to, the Senior Debt for any payment or distribution, securities
of either of the Issuers or any other Person provided for by a plan of reorganization or
readjustment that are subordinated, at least to the

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extent that the Securities are
subordinated, to the payment of all Senior Debt then outstanding; provided that (i) if a new
Person results from such reorganization or readjustment, such Person assumes the Senior Debt
and (ii) the rights of the holders of the Senior Debt are not, without the consent of such
holders, altered by such reorganization or readjustment. The consolidation of the either of
the Issuers with, or the merger of either of the Issuers with or into, another Person or the
liquidation or dissolution of either of the Issuers following the sale, conveyance,
transfer, lease or other disposition of all or substantially all of its property and assets
to another Person upon the terms and conditions provided in Section 8.1 of this Indenture
shall not be deemed a dissolution, winding up, liquidation or reorganization for the
purposes of this Section 15.3 if such other Person shall, as a part of such consolidation,
merger, sale, conveyance, transfer, lease or other disposition, comply (to the extent
required) with the conditions stated in Section 8.1 of this Indenture.

Section 15.4. Subrogation.

     (a) Upon the payment in full of all Senior Debt in cash or cash equivalents, the
Holders shall be subrogated to the rights of the holders of Senior Debt to receive payments
or distributions to the holders of Senior Debt of cash, property or securities of the
Issuers made on such Senior Debt until the principal of and premium, if any, and interest on
the Securities shall be paid in full; and, for the purposes of such subrogation, no payments
or distributions of any cash, property or securities to which the Holders or the Trustee on
their behalf would be entitled except for the provisions of this Article Fifteen, and no
payment pursuant to the provisions of this Article Fifteen to the holders of Senior Debt by
the Holders or the Trustee on their behalf shall, as between each Issuer, its creditors
other than holders of Senior Debt, and the Holders, be deemed to be a payment by such Issuer
to or on account of the Senior Debt. It is understood that the provisions of this Article
Fifteen are intended solely for the purpose of defining the relative rights of the Holders,
on the one hand, and the holders of the Senior Debt, on the other hand.

     (b) If any payment or distribution to which the Holders would otherwise have been
entitled but for the provisions of this Article Fifteen shall have been applied, pursuant to
the provisions of this Article Fifteen, to the payment of all amounts payable under Senior
Debt, then, and in such case, the Holders shall be entitled to receive from the holders of
such Senior Debt any payments or distributions received by such holders of Senior Debt in
excess of the amount required to make payment in full, in cash or cash equivalents, of such
Senior Debt of such holders.

Section 15.5. Obligations of Issuers Unconditional.

     (a) Nothing contained in this Article Fifteen or elsewhere in this Indenture or in the
Securities is intended to or shall impair, as among the Issuers and the Holders, the
obligation of the Issuers, which is absolute and unconditional, to pay to the Holders the
principal of and premium, if any, and interest on the Securities as and when the same shall
become due and payable in accordance with their terms, or is intended to or shall affect the
relative rights of the Holders and creditors of the Issuers other than the holders of the
Senior Debt, nor shall anything herein or therein prevent the Holders or the Trustee on
their behalf from exercising all remedies otherwise permitted by applicable law upon default
under this Indenture, subject to the rights, if any, under this Article Fifteen of the
holders of the Senior Debt.

     (b) Without limiting the generality of the foregoing, nothing contained in this Article
Fifteen will restrict the right of the Trustee or the Holders to take any action to declare
the Securities to be due and payable prior to their Stated Maturity pursuant to Section 5.2
of this

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Indenture or to pursue any rights or remedies hereunder; provided, however, that all
Senior Debt then due and payable or thereafter declared to be due and payable shall first be
paid in full, in cash or cash equivalents, before the Holders or the Trustee are entitled to
receive any direct or indirect payment from the Issuers with respect to any Security.

Section 15.6. Notice to Trustee.

     (a) The Issuers shall give prompt written notice to the Trustee of any fact known to
the Issuers that would prohibit the making of any payment to or by the Trustee in respect of
the Securities pursuant to the provisions of this Article Fifteen. The Trustee shall not be
charged with the knowledge of the existence of any default or event of default with respect
to any Senior Debt or of any other facts that would prohibit the making of any payment to or
by the Trustee unless and until the Trustee shall have received notice in writing at its
Corporate Trust Office to that effect signed by an officer of each of the Issuers, or by a
holder of Senior Debt or trustee or agent thereof; and prior to the receipt of any such
written notice, the Trustee shall, subject to Article Six, be entitled to assume that no
such facts exist; provided that, if the Trustee shall not have received the notice provided
for in this Section 15.6 at least three Business Days prior to the date upon which, by the
terms of this Indenture, any monies shall become payable for any purpose (including, without
limitation, the payment of the principal of or premium, if any, or interest on any
Security), then, notwithstanding anything herein to the contrary, the Trustee shall have
full power and authority to receive any monies from the Issuers and to apply the same to the
purpose for which they were received, and shall not be affected by any notice to the
contrary that may be received by it on or after such three Business Day period except for an
acceleration of the Securities prior to such application. Nothing contained in this Section
15.6 shall limit the right of the holders of Senior Debt to recover payments as contemplated
by this Article Fifteen. The foregoing shall not apply if the Paying Agent is either of the
Issuers. The Trustee shall be entitled to rely on the delivery to it of a written notice by
a Person representing himself or itself to be a holder of any Senior Debt (or a trustee on
behalf of, or other representative of, such holder) to establish that such notice has been
given by a holder of such Senior Debt or a trustee or representative on behalf of any such
holder.

     (b) In the event that the Trustee determines in good faith that any evidence is
required with respect to the right of any Person as a holder of Senior Debt to participate
in any payment or distribution pursuant to this Article Fifteen, the Trustee may request
such Person to furnish evidence to the reasonable satisfaction of the Trustee as to the
amount of Senior Debt held by such Person, the extent to which such Person is entitled to
participate in such payment or
distribution and any other facts pertinent to the rights of such Person under this
Article Fifteen and, if such evidence is not furnished to the Trustee, the Trustee may defer
any payment to such Person pending judicial determination as to the right of such Person to
receive such payment.

Section 15.7. Reliance on Judicial Order or Certificate of Liquidating Agent.

     Upon any payment or distribution of assets or securities referred to in this Article Fifteen,
the Trustee and the Holders shall be entitled to rely upon any order or decree made by any court of
competent jurisdiction in which bankruptcy, dissolution, winding up, liquidation or reorganization
proceedings are pending, or upon a certificate of the receiver, trustee in bankruptcy, liquidating
trustee, agent or other similar Person making such payment or distribution, delivered to the
Trustee or to the Holders for the purpose of ascertaining the persons entitled to participate in
such distribution, the holders of the Senior

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Debt and other Debt of the Issuers, the amount thereof
or payable thereon, the amount or amounts paid or distributed thereon and all other facts pertinent
thereto or to this Article Fifteen.

Section 15.8. Trustee’s Relation to Senior Debt.

     (a) Each of the Trustee and any Paying Agent shall be entitled to all the rights set
forth in this Article Fifteen with respect to any Senior Debt that may at any time be held
by it in its individual or any other capacity to the same extent as any other holder of
Senior Debt and nothing in this Indenture shall deprive the Trustee or any Paying Agent of
any of its rights as such holder.

     (b) With respect to the holders of Senior Debt, the Trustee undertakes to perform or to
observe only such of its covenants and obligations as are specifically set forth in this
Article Fifteen, and no implied covenants or obligations with respect to the holders of
Senior Debt shall be read into this Indenture against the Trustee. The Trustee shall not be
deemed to owe any fiduciary duty to the holders of Senior Debt and shall not be liable to
any such holders if the Trustee shall in good faith mistakenly pay over or distribute to
Holders of Securities or to the Issuers or to any other person cash, property or securities
to which any holders of Senior Debt shall be entitled by virtue of this Article Fifteen or
otherwise.

Section 15.9. Subordination Rights Not Impaired by Acts or Omissions of the Issuers or Holders
of Senior Debt.

     No right of any present or future holders of any Senior Debt to enforce subordination as
provided in this Article Fifteen will at any time in any way be prejudiced or impaired by any act
or failure to act on the part of either of the Issuers or by any act or failure to act, in good
faith, by any such holder, or by any noncompliance by either of the Issuers with the terms of this
Indenture, regardless of any knowledge thereof that any such holder may have or otherwise be
charged with. The provisions of this Article Fifteen are intended to be for the benefit of, and
shall be enforceable directly by, the holders of Senior Debt.

Section 15.10. Holders Authorize Trustee to Effectuate Subordination of Securities.

     Each Holder by such Holder’s acceptance of any Securities authorizes and expressly directs the
Trustee on such Holder’s behalf to take such action as may be necessary or appropriate to
effectuate the subordination provided in this Article Fifteen, and appoints the Trustee such
Holder’s attorney-in-fact for such purposes, including, in the event of any dissolution, winding
up, liquidation or reorganization of either of the Issuers (whether in bankruptcy, insolvency,
receivership, reorganization or similar proceedings or upon an assignment for the benefit of
creditors or otherwise) tending towards liquidation of the property and assets of such Issuer, the
filing of a claim for the unpaid balance of its Securities in the form required in those
proceedings.

Section 15.11. Not to Prevent Events of Default.

     The failure to make a payment on account of principal of or premium, if any, or interest on
the Securities by reason of any provision of this Article Fifteen will not be construed as
preventing the occurrence of an Event of Default.

Section 15.12. Trustee’s Compensation Not Prejudiced.

     Nothing in this Article Fifteen will apply to amounts due to the Trustee pursuant to other
sections of this Indenture, including Section 6.7.

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Section 15.13. No Waiver of Subordination Provisions.

     Without in any way limiting the generality of Section 15.9, the holders of Senior Debt may, at
any time and from time to time, without the consent of or notice to the Trustee or the Holders,
without incurring responsibility to the Holders and without impairing or releasing the
subordination provided in this Article Fifteen or the obligations hereunder of the Holders to the
holders of Senior Debt, do any one or more of the following: (a) change the manner, place or terms
of payment or extend the time of payment of, or renew or alter, Senior Debt or any instrument
evidencing the same or any agreement under which Senior Debt is outstanding or secured; (b) sell,
exchange, release or otherwise deal with any property pledged, mortgaged or otherwise securing
Senior Debt; (c) release any Person liable in any manner for the collection of Senior Debt; and (d)
exercise or refrain from exercising any rights against the Issuers and any other Person.

Section 15.14. Payments May Be Paid Prior to Dissolution.

     Nothing contained in this Article Fifteen or elsewhere in this Indenture shall prevent (a) the
Issuers, except under the conditions described in Section 15.2 or Section 15.3, from making
payments of principal of and premium, if any, and interest on the Securities, or from depositing
with the Trustee any money for such payments, or (b) the application by the Trustee of any money
deposited with it for the
purpose of making such payments of principal of and premium, if any, and interest on the
Securities to the holders entitled thereto unless, at least two Business Days prior to the date
upon which such payment becomes due and payable, the Trustee shall have received the written notice
provided for in Section 15.2(b) of this Indenture (or there shall have been an acceleration of the
Securities prior to such application) or in Section 15.6 of this Indenture. An Issuer shall give
prompt written notice to the Trustee of any dissolution, winding up, liquidation or reorganization
of such Issuer.

Section 15.15. Trust Moneys Not Subordinated.

     Notwithstanding anything contained herein to the contrary, payments from money or the proceeds
of U.S. Government Obligations held in trust under Article Four by the Trustee for the payment of
principal of and premium, if any, and interest on the Securities shall not be subordinated to the
prior payment of any Senior Debt (provided that, at the time deposited, such deposit did not
violate any then outstanding Senior Debt), and none of the Holders shall be obligated to pay over
any such amount to any holder of Senior Debt.

ARTICLE SIXTEEN

SUBORDINATION OF SECURITIES GUARANTEE

Section 16.1. Securities Guarantee Subordinated to Guarantor Senior Debt.

     Each Guarantor covenants and agrees, and each Holder, by its acceptance of a Securities
Guarantee, likewise covenants and agrees, that all Securities Guarantee shall be issued subject to
the provisions of this Article Sixteen; and each Person holding any Security, whether upon original
issue or upon transfer, assignment or exchange thereof, accepts and agrees that the payment of all
obligations on each and all of the Securities Guarantee shall, to the extent and in the manner set
forth in this Article Sixteen, be subordinated in right of payment to the prior payment in full, in
cash or cash equivalents, of all existing and future Guarantor Senior Debt of such Guarantor.

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Section 16.2. No Payment on Securities Guarantee in Certain Circumstances.

     (a) No direct or indirect payment by or on behalf of any Guarantor of any obligations
on each and all of the Securities Guarantee (other than with the money, securities or
proceeds held under any defeasance trust established in accordance with this Indenture),
whether pursuant to the terms of the Securities Guarantee or upon acceleration or otherwise,
shall be made if, at the time of such payment, there exists a default in the payment of all
or any portion of the obligations on any Designated Guarantor Senior Debt of such Guarantor
and such default shall not have been cured or waived or the benefits of this sentence waived
by or on behalf of the holders of such Guarantor Senior Debt.

     (b) During the continuance of any other event of default with respect to any Designated
Guarantor Senior Debt pursuant to which the maturity thereof may be accelerated, upon
receipt by the Trustee of written notice from the trustee or other representative for the
holders of such Designated Guarantor Senior Debt (or the holders of at least a majority in
aggregate principal amount of such Designated Guarantor Senior Debt then outstanding), no
payment of any
obligations on each and all of the Securities Guarantee (other than with the money,
securities or proceeds held under any defeasance trust established in accordance with this
Indenture) may be made by or on behalf of any Guarantor upon or in respect of the Securities
Guarantee for a period (a “Securities Guarantee Payment Blockage Period”) commencing on the
date of receipt of such notice and ending 179 days thereafter (unless, in each case, such
Securities Guarantee Payment Blockage Period has been terminated by written notice to the
Trustee from such trustee of, or other representatives for, such holders or by payment in
full in cash or cash equivalents of such Designated Guarantor Senior Debt or such event of
default has been cured or waived). Not more than one Securities Guarantee Payment Blockage
Period may be commenced with respect to the Securities Guarantee during any period of 360
consecutive days. Notwithstanding anything in this Indenture to the contrary, there must be
180 consecutive days in any 360-day period in which no Securities Guarantee Payment Blockage
Period is in effect. No event of default that existed or was continuing (it being
acknowledged that any subsequent action that would give rise to an event of default pursuant
to any provision under which an event of default previously existed or was continuing shall
constitute a new event of default for this purpose) on the date of the commencement of any
Securities Guarantee Payment Blockage Period with respect to the Designated Guarantor Senior
Debt initiating such Securities Guarantee Payment Blockage Period shall be, or shall be
made, the basis for the commencement of a second Securities Guarantee Payment Blockage
Period by the trustee or other representative for the holders of such Designated Guarantor
Senior Debt, whether or not within a period of 360 consecutive days, unless such event of
default shall have been cured or waived for a period of not less than 90 consecutive days.

     (c) In the event that, notwithstanding the foregoing, any payment shall be received by
the Trustee or any Holder when such payment is prohibited by clause (a) or (b) above, such
payment shall be held in trust for the benefit of, and shall be paid over or delivered to,
the trustee in bankruptcy, receiver, liquidating trustee, custodian, assignee, agent or
other Persons making payment or distribution of the assets of either of the Issuers for
application to the payment of all Guarantor Senior Debt remaining unpaid, or to the trustee
or trustees under any indenture pursuant to which any of such Guarantor Senior Debt may have
been issued, and any excess above such amounts due and owing on Guarantor Senior Debt shall
be paid to such Guarantor.

Section 16.3. Payment over of Proceeds upon Dissolution, Etc.

     (a) Upon any payment or distribution of assets or securities of a Guarantor of any kind
or character, whether in cash, property or securities (other than with the money, securities
or

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proceeds held under any defeasance trust established in accordance with this Indenture),
in connection with any dissolution or winding up or total or partial liquidation or
reorganization of such Guarantor, whether voluntary or involuntary, or in bankruptcy,
insolvency, receivership or other proceedings, assignment of assets for the benefit of
creditors or other marshalling of assets and liabilities of such Guarantor, all amounts due
or to become due upon all Guarantor Senior Debt shall first be paid in full, in cash or cash
equivalents, before the Holders or the Trustee on their behalf shall be entitled to receive
any payment by (or on behalf of) such Guarantor on account of the Securities Guarantee, or
any payment to acquire any of the Securities Guarantee for cash, property or securities, or
any distribution with respect to the Securities Guarantee of any cash, property or
securities. Before any payment may be made by, or on behalf of, any Guarantor on any
Securities Guarantee (other than with the money, securities or proceeds held under any
defeasance trust established in accordance with this Indenture) in connection with any such
dissolution, winding up, liquidation or reorganization, any payment or distribution of
assets or securities of such Guarantor of any kind or character, whether in cash, property
or securities, to
which the Holders or the Trustee on their behalf would be entitled, but for the
provisions of this Article Sixteen, shall be made by such Guarantor or by any receiver,
trustee in bankruptcy, liquidating trustee, agent or other similar Person making such
payment or distribution, or by the Holders or the Trustee if received by them or it, to the
trustee in bankruptcy, receiver, liquidating trustee, custodian, assignee, agent, or other
Persons making payment or distribution of the assets of such Guarantor for application to
the payment of all Guarantor Senior Debt remaining unpaid, or to the trustee or trustees
under any indenture pursuant to which any such Guarantor Senior Debt may have been issued,
to the extent necessary to pay all such Guarantor Senior Debt in full, in cash or cash
equivalents, after giving effect to any concurrent payment, distribution or provision
therefor to or for the holders of such Guarantor Senior Debt.

     (b) To the extent any payment of Guarantor Senior Debt (whether by or on behalf of any
Guarantor, as proceeds of security or enforcement of any right of setoff or otherwise) is
declared to be fraudulent or preferential, set aside or required to be paid to any receiver,
trustee in bankruptcy, liquidating trustee, agent or other similar Person under any
bankruptcy, insolvency, receivership, fraudulent conveyance or similar law, then if such
payment is recovered by, or paid over to, such receiver, trustee in bankruptcy, liquidating
trustee or other similar Person, the Guarantor Senior Debt or part thereof originally
intended to be satisfied shall be deemed to be reinstated and outstanding as if such payment
had not occurred. To the extent the obligation to repay any Guarantor Senior Debt is
declared to be fraudulent or invalid or otherwise set aside under any bankruptcy,
insolvency, receivership, fraudulent conveyance or similar law, then the obligation so
declared fraudulent or invalid or otherwise set aside (and all other amounts that would come
due with respect thereto had such obligation not been so affected) shall be deemed to be
reinstated and outstanding as Guarantor Senior Debt for all purposes hereof as if such
declaration or setting aside had not occurred.

     (c) In the event that, notwithstanding the provision in clause (a) above prohibiting
such payment or distribution, any payment or distribution of assets or securities of any
Guarantor of any kind or character, whether in cash, property or securities, shall be
received by the Trustee or any Holder at a time when such payment or distribution is
prohibited by clause (a) above and before all obligations in respect of Guarantor Senior
Debt are paid in full, in cash or cash equivalents, such payment or distribution shall be
received and held in trust for the benefit of, and shall be paid over or delivered to, the
trustee in bankruptcy, receiver, liquidating trustee, custodian, assignee, agent, or other
Persons making payment or distribution of the assets of such Guarantor for application to
the payment of all Guarantor Senior Debt remaining unpaid, or to the trustee or trustees
under any indenture pursuant to which any such Guarantor Senior Debt may

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have been issued,
after giving effect to any concurrent payment, distribution or provision therefor to or for
the holders of such Guarantor Senior Debt.

     (d) For purposes of this Section 16.3, the words “cash, property or securities” shall
not be deemed to include, so long as the effect of this clause is not to cause the
Securities Guarantee to be treated in any case or proceeding or similar event described in
this Section 16.3 as part of the same class of claims as the Guarantor Senior Debt or any
class of claims pari passu with, or senior to, the Guarantor Senior Debt for any payment or
distribution, securities of any Guarantor or any other Person provided for by a plan of
reorganization or readjustment that are subordinated, at least to the extent that the
Securities Guarantee are subordinated, to the payment of all Guarantor Senior Debt then
outstanding; provided that (i) if a new Person results from such reorganization or
readjustment, such Person assumes the Guarantor Senior Debt and (ii) the rights of the
holders of the Guarantor Senior Debt are not, without the consent of such holders, altered
by such reorganization or readjustment. The consolidation of a Guarantor with, or the merger
a Guarantor with or into, another Person or the liquidation or dissolution of a Guarantor
following
the sale, conveyance, transfer, lease or other disposition of all or substantially all
of its property and assets to another Person without violation of the terms and conditions
provided in this Indenture shall not be deemed a dissolution, winding up, liquidation or
reorganization for the purposes of this Section 16.3.

Section 16.4. Subrogation.

     (a) Upon the payment in full of all Guarantor Senior Debt in cash or cash equivalents,
the Holders shall be subrogated to the rights of the holders of Guarantor Senior Debt to
receive payments or distributions of cash, property or securities of the Guarantors made on
such Guarantor Senior Debt until all obligations arising under the Securities Guarantee
shall be paid in full; and, for the purposes of such subrogation, no payments or
distributions to the holders of the Guarantor Senior Debt of any cash, property or
securities to which the Holders or the Trustee on their behalf would be entitled except for
the provisions of this Article Sixteen, and no payment pursuant to the provisions of this
Article Sixteen to the holders of Guarantor Senior Debt by the Holders or the Trustee on
their behalf shall, as between each Guarantor, its creditors other than holders of Guarantor
Senior Debt, and the Holders, be deemed to be a payment by such Guarantor to or on account
of the Guarantor Senior Debt. It is understood that the provisions of this Article Sixteen
are intended solely for the purpose of defining the relative rights of the Holders, on the
one hand, and the holders of the Guarantor Senior Debt, on the other hand.

     (b) If any payment or distribution to which the Holders would otherwise have been
entitled but for the provisions of this Article Sixteen shall have been applied, pursuant to
the provisions of this Article Sixteen, to the payment of all amounts payable under
Guarantor Senior Debt, then, and in such case, the Holders shall be entitled to receive from
the holders of such Guarantor Senior Debt any payments or distributions received by such
holders of Guarantor Senior Debt in excess of the amount required to make payment in full,
in cash or cash equivalents, of such Guarantor Senior Debt of such holders.

Section 16.5. Obligations of Guarantor Unconditional.

     (a) Nothing contained in this Article Sixteen or elsewhere in this Indenture or in the
Securities is intended to or shall impair, as among the Guarantors and the Holders, the
obligation of such Guarantors, which is absolute and unconditional, to pay to the Holders
all obligations arising under the Securities Guarantee as and when the same shall become due
and payable in accordance with their terms, or is intended to or shall affect the relative
rights of the Holders and

75

 

creditors of the Guarantors other than the holders of the
Guarantor Senior Debt, nor shall anything herein or therein prevent the Holders or the
Trustee on their behalf from exercising all remedies otherwise permitted by applicable law
upon default under this Indenture, subject to the rights, if any, under this Article Sixteen
of the holders of the Guarantor Senior Debt.

     (b) Without limiting the generality of the foregoing, nothing contained in this Article
Sixteen will restrict the right of the Trustee or the Holders to take any action to declare
the Securities to be due and payable prior to their Stated Maturity pursuant to Section 5.2
of this Indenture or to pursue any rights or remedies hereunder; provided, however, that all
Guarantor Senior Debt then due and payable or thereafter declared to be due and payable
shall first be paid
in full, in cash or cash equivalents, before the Holders or the Trustee are entitled to
receive any direct or indirect payment from any Guarantor with respect to its Securities
Guarantee.

Section 16.6. Notice to Trustee.

     (a) Each Guarantor shall give prompt written notice to the Trustee of any fact known to
such Guarantor that would prohibit the making of any payment to or by the Trustee in respect
of the Securities Guarantee pursuant to the provisions of this Article Sixteen. The Trustee
shall not be charged with the knowledge of the existence of any default or event of default
with respect to any Guarantor Senior Debt of any Guarantor or of any other facts that would
prohibit the making of any payment to or by the Trustee unless and until the Trustee shall
have received notice in writing at its Corporate Trust Office to that effect signed by an
officer of such Guarantor, or by a holder of such Guarantor Senior Debt or trustee or agent
thereof; and prior to the receipt of any such written notice, the Trustee shall, subject to
Article Six, be entitled to assume that no such facts exist; provided that, if the Trustee
shall not have received the notice provided for in this Section 16.6 at least three Business
Days prior to the date upon which, by the terms of this Indenture, any monies shall become
payable for any purpose (including, without limitation, the payment of all obligations
arising under any Securities Guarantee), then, notwithstanding anything herein to the
contrary, the Trustee shall have full power and authority to receive any monies from such
Guarantor and to apply the same to the purpose for which they were received, and shall not
be affected by any notice to the contrary that may be received by it on or after such three
Business Day period except for an acceleration of the Securities prior to such application.
Nothing contained in this Section 16.6 shall limit the right of the holders of Guarantor
Senior Debt to recover payments as contemplated by this Article Sixteen. The foregoing shall
not apply if the Paying Agent is either of the Issuers. The Trustee shall be entitled to
rely on the delivery to it of a written notice by a Person representing himself or itself to
be a holder of any Guarantor Senior Debt (or a trustee on behalf of, or other representative
of, such holder) to establish that such notice has been given by a holder of such Guarantor
Senior Debt or a trustee or representative on behalf of any such holder.

     (b) In the event that the Trustee determines in good faith that any evidence is
required with respect to the right of any Person as a holder of Guarantor Senior Debt to
participate in any payment or distribution pursuant to this Article Sixteen, the Trustee may
request such Person to furnish evidence to the reasonable satisfaction of the Trustee as to
the amount of Guarantor Senior Debt held by such Person, the extent to which such Person is
entitled to participate in such payment or distribution and any other facts pertinent to the
rights of such Person under this Article Sixteen and, if such evidence is not furnished to
the Trustee, the Trustee may defer any payment to such Person pending judicial determination
as to the right of such Person to receive such payment.

76

 

Section 16.7. Reliance on Judicial Order or Certificate of Liquidating Agent.

     Upon any payment or distribution of assets or securities referred to in this Article Sixteen,
the Trustee and the Holders shall be entitled to rely upon any order or decree made by any court of
competent jurisdiction in which bankruptcy, dissolution, winding up, liquidation or reorganization
proceedings are
pending, or upon a certificate of the receiver, trustee in bankruptcy, liquidating trustee,
agent or other similar Person making such payment or distribution, delivered to the Trustee or to
the Holders for the purpose of ascertaining the persons entitled to participate in such
distribution, the holders of the Guarantor Senior Debt and other Debt of a Guarantor, the amount
thereof or payable thereon, the amount or amounts paid or distributed thereon and all other facts
pertinent thereto or to this Article Sixteen.

Section 16.8. Trustee’s Relation to Guarantor Senior Debt.

     (a) Each of the Trustee and any Paying Agent shall be entitled to all the rights set
forth in this Article Sixteen with respect to any Guarantor Senior Debt that may at any time
be held by it in its individual or any other capacity to the same extent as any other holder
of Guarantor Senior Debt and nothing in this Indenture shall deprive the Trustee or any
Paying Agent of any of its rights as such holder.

     (b) With respect to the holders of Guarantor Senior Debt, the Trustee undertakes to
perform or to observe only such of its covenants and obligations as are specifically set
forth in this Article Sixteen, and no implied covenants or obligations with respect to the
holders of Guarantor Senior Debt shall be read into this Indenture against the Trustee. The
Trustee shall not be deemed to owe any fiduciary duty to the holders of Guarantor Senior
Debt and shall not be liable to any such holders if the Trustee shall in good faith
mistakenly pay over or distribute to Holders of Securities Guarantee or to a Guarantor or to
any other person cash, property or securities to which any holders of Guarantor Senior Debt
shall be entitled by virtue of this Article Sixteen or otherwise.

Section 16.9. Subordination Rights Not Impaired by Acts or Omissions of a Guarantor or Holders
of Guarantor Senior Debt.

     No right of any present or future holders of any Guarantor Senior Debt to enforce
subordination as provided in this Article Sixteen will at any time in any way be prejudiced or
impaired by any act or failure to act on the part of a Guarantor or by any act or failure to act,
in good faith, by any such holder, or by any noncompliance by such Guarantor with the terms of this
Indenture, regardless of any knowledge thereof that any such holder may have or otherwise be
charged with. The provisions of this Article Sixteen are intended to be for the benefit of, and
shall be enforceable directly by, the holders of Guarantor Senior Debt.

Section 16.10. Holders Authorize Trustee to Effectuate Subordination of Securities
Guarantee.

     Each Holder by such Holder’s acceptance of any Securities Guarantee authorizes and expressly
directs the Trustee on such Holder’s behalf to take such action as may be necessary or appropriate
to effectuate the subordination provided in this Article Sixteen, and appoints the Trustee such
Holder’s attorney-in-fact for such purposes, including, in the event of any dissolution, winding
up, liquidation or reorganization of a Guarantor (whether in bankruptcy, insolvency, receivership,
reorganization or similar proceedings or upon an assignment for the benefit of creditors or
otherwise) tending towards liquidation of the property and assets of such Guarantor, the filing of
a claim for the unpaid balance of its Securities Guarantee in the form required in those
proceedings. If the Trustee does not file a proper claim or proof of
indebtedness in the form required in such proceeding at least 30 days before the expiration of
the time to

77

 

file such claim or proof, each holder of Guarantor Senior Debt is hereby authorized to
file an appropriate claim for and on behalf of the Holders.

Section 16.11. Not to Prevent Events of Default.

     The failure to fulfill any obligation arising under the Securities Guarantee by reason of any
provision of this Article Sixteen will not be construed as preventing the occurrence of an Event of
Default.

Section 16.12. Trustee’s Compensation Not Prejudiced.

     Nothing in this Article Sixteen will apply to amounts due to the Trustee pursuant to other
sections of this Indenture, including Section 6.7.

Section 16.13. No Waiver of Subordination Provisions.

     Without in any way limiting the generality of Section 16.9, the holders of Guarantor Senior
Debt may, at any time and from time to time, without the consent of or notice to the Trustee or the
Holders, without incurring responsibility to the Holders and without impairing or releasing the
subordination provided in this Article Sixteen or the obligations hereunder of the Holders to the
holders of Guarantor Senior Debt, do any one or more of the following: (a) change the manner, place
or terms of payment or extend the time of payment of, or renew or alter, Guarantor Senior Debt or
any instrument evidencing the same or any agreement under which Guarantor Senior Debt is
outstanding or secured; (b) sell, exchange, release or otherwise deal with any property pledged,
mortgaged or otherwise securing Guarantor Senior Debt; (c) release any Person liable in any manner
for the collection of Guarantor Senior Debt; and (d) exercise or refrain from exercising any rights
against the Issuers and any other Person.

Section 16.14. Payments May Be Paid Prior to Dissolution.

     Nothing contained in this Article Sixteen or elsewhere in this Indenture shall prevent (a) a
Guarantor, except under the conditions described in Section 16.2 or Section 16.3, from fulfilling
any obligation arising under the Securities Guarantee, or from depositing with the Trustee any
money for such payments, or (b) the application by the Trustee of any money deposited with it for
the purpose of fulfilling any obligation arising under the Securities Guarantee to the holders
entitled thereto unless, at least two Business Days prior to the date upon which such payment
becomes due and payable, the Trustee shall have received the written notice provided for in Section
16.2(b) of this Indenture (or there shall have been an acceleration of the Securities Guarantee
prior to such application) or in Section 16.6 of this Indenture. An Issuer shall give prompt
written notice to the Trustee of any dissolution, winding up, liquidation or reorganization of such
Guarantor.

* * *

78

 

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

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

	 	 	 	 	 	 	 

	 	 	LEGACY RESERVES LP	 	 
	 
	 	 	 	 	 	 
	 

	 	By:
	 	 
 

	 	 
	 

	 	Name:
	 	 
 

	 	 
	 

	 	Title:
	 	 
 

	 	 
	 
	 	 	 	 	 	 
	 	 	LEGACY RESERVES FINANCE CORPORATION	 	 
	 
	 	 	 	 	 	 
	 

	 	By:
	 	 
 

	 	 
	 

	 	Name:
	 	 
 

	 	 
	 

	 	Title:
	 	 
 

	 	 
	 
	 	 	 	 	 	 
	 	 	[                    ]	 	 
	 
	 	 	 	 	 	 
	 

	 	By:
	 	 
 

	 	 
	 

	 	Name:
	 	 
 

	 	 
	 

	 	Title:Exhibit 4.14

Exhibit 4.14

SHARE PURCHASE AGREEMENT

This SHARE PURCHASE AGREEMENT (the “Agreement”) is made on the 1st day of January, 2010, by
and among CITYLEAD LIMITED, a company limited by shares duly incorporated and validly existing
under the Laws of the British Virgin Islands (the “Company”), the purchaser listed on Schedule
1 attached to this Agreement (the “Purchaser”), ACTIVE CENTURY HOLDINGS LIMITED, a company
limited by shares duly incorporated and validly existing under the Laws of British Virgin Islands
(the “Founder Holdco”), the Persons listed on Schedule 2 attached to this Agreement (each a
“Founder” and collectively the “Founders”, and together with the Founder Holdco, the “Key Holders”
and each a “Key Holder”), QIGI&BODEE Technology Limited, a company organized and existing under the
Laws of Hong Kong (the “HK Co”), and QIGI&BODEE Technology (Beijing) Co., Ltd., a domestic company
duly incorporated and validly existing under the Laws of the PRC (the “Domestic Company”). Each of
the Company, the HK Co, the Purchaser, the Key Holders, and the Domestic Company shall be referred
to individually as a “Party” and collectively as the “Parties”. Capitalized terms used herein shall
have the meaning set forth in Schedule 3 attached hereto.

RECITALS

WHEREAS, prior to the Closing and pursuant to the Plan of Restructuring, the HK Co shall form
a wholly owned foreign enterprise organized and existing under the Laws of the PRC (the “WFOE”),
which shall become a party to this Agreement by executing and delivering a counterpart signature
page hereto.

WHEREAS, this Agreement shall be effective as to all parties except for the WFOE as of the
date hereof, and effective all parties and the WFOE as of the date of its execution and delivery of
its counterpart signature page.

WHEREAS, the Purchaser desires to purchase from the Company the Shares (as defined in
Section 1.1) and the Company desires to sell the Shares (as defined in Section 1.1)
to the Purchaser pursuant to the terms and subject to the conditions of this Agreement.

NOW, THEREFORE, THE PARTIES HEREBY AGREE AS FOLLOWS:

	1.	 	PURCHASE AND SALE OF SHARES.
	 
	1.1	 	Sale and Issuance of Share.

Subject to the terms and conditions of this Agreement, the Purchaser agrees to purchase at
the Closing (as defined below) and the Company agrees to sell and issue to the Purchaser at
the Closing that number of Class B Ordinary Shares of the Company set forth opposite the
Purchaser’s name on Schedule 1, at a purchase price of US$125,000 per share for an
aggregate purchase price of US$500,000 (the “Purchase Price”). The Class B Ordinary Shares
issued to the Purchaser pursuant to this Agreement shall be referred to in this Agreement as
the “Shares”.

 

1

 

	1.2	 	Closing; Delivery.

	 	(a)	 	The purchase and sale of the Shares shall take place remotely via the exchange
of documents and signatures, on a date specified by the Parties, or at such other time
and place as the Company and the Purchaser mutually agree upon, which date shall be no
later than five (5) Business Days after the satisfaction or waiver of each condition to
the Closing set forth in Section 2 and Section 3 (other than conditions
that by their nature ate to be satisfied at the Closing, but subject to the
satisfaction or waiver of such conditions) (which time and place are designated as the
“Closing”)

	 	(b)	 	At the Closing, the Company shall cause its register of members to be updated
to reflect the Shares purchased by the Purchaser and deliver a copy of such updated
share register certified by the Company’s registered agent to the Purchaser.

	 	(c)	 	At the Closing, the Purchaser shall deposit the Purchase Price as indicated on
Schedule 1 by wire transfer of immediately available U S dollar hunds into a
bank account of the Company acceptable to the Purchaser. All bank charges and related
expenses for remittance and receipt of funds shall be for the account of the Company.

	 	(d)	 	Within five (5) Business Days after the Closing, the Company shall deliver to
the Purchaser one or more certificates representing the Shares being purchased by the
Purchaser hereunder at the Closing as set forth on Schedule 1.

	1.3	 	Use of Proceeds. 

In accordance with the directions of the Board of Directors, as it shall be constituted in
accordance with the Shareholders’ Agreement, the Company shall use the proceeds from the
sale of the Shares for general working capital and other general corporate purposes for the
Group Companies.

	1.4	 	Termination of Agreement.

This Agreement may be terminated before the Closing as follows:

	 	(a)	 	at the election of the Purchaser on or after March 31, 2010, if the Closing
shall not have occurred on or before such date unless such date is extended by the
mutual written consent of the Company and the Purchaser, provided that: (i) the
Purchaser is not in material default of any of their obligations hereunder, and (ii)
the right to terminate this Agreement pursuant to this
Section 1.4(a) shall not
be available to the Purchaser if its breach of any provision of this Agreement has been
the cause of, or resulted, directly or indirectly, in, the failure of the Closing to be
consummated by March 31, 2010;

	 	(b)	 	by mutual written consent of Company and the Purchaser as evidenced in writing
signed by each of the Company and the Purchaser;

	 	(c)	 	by the Purchaser’ in the event of any breach or violation of any representation
or warranty, covenant or agreement contained herein or in any of the other Transaction
Documents by any Warrantor that is not cured or curable within ten (10) Business Days
of written notice;

 

2

 

	 	(d)	 	by the Purchaser if any event, circumstance or change shall have occurred that,
individually or in the aggregate with one or more other events, circumstances or
changes, have had or reasonably could be expected to have a Material Adverse Effect on
the Company or any other Group Company; or

	 	(e)	 	by the Company in the event of any breach or violation of any representation or
warranty, covenant or agreement contained herein or in any of the other Transaction
Documents by the Purchaser with respect to such Purchaser that is not cured or curable
within ten (10) Business Days of written notice.

The date of termination of this Agreement pursuant to this Section 1.4 hereof shall
be referred to as “Termination Date”. In the event of termination by the Company and/or the
Purchaser pursuant to this Section 1.4 hereof, written notice thereof shall
forthwith be given to the other Party and this Agreement shall terminate, and the purchase
of the Shares hereunder shall be abandoned and rescinded, without further action by the
Parties hereto.

	1.5	 	Effect of Termination.

In the event that this Agreement is validly terminated pursuant to Section 1.4, then
each of the Parties shall be relieved of their duties and obligations arising under this
Agreement after the date of such termination and such termination shall be without liability
to the Company or the Purchaser; provided that no such termination shall relieve any
Party hereto from liability for any breach of this Agreement. The provisions of this
Section 1.5, Section 7, Section 8.1, Section 8.2,
Section 8.9, and Section 8.15, hereof shall survive any termination of this
Agreement

	2.	 	CONDITIONS TO THE OBLIGATIONS OF THE PURCHASER AT CLOSING.

The obligations of the Purchaser to purchase the Shares at the Closing are subject to the
fulfillment, on or before the Closing, of each of the following conditions, unless otherwise
waived in writing by the Purchaser:

	2.1	 	Completion of Due Diligence.

The Purchaser shall have satisfactorily completed its business, legal and financial due
diligence review, including but not limited to the receipt by the Purchaser of the Financial
Statements with respect to each Group Company hereof at the Company’s expense.

	2.2	 	Material Adverse Effect.

Since the date of this Agreement, no event, circumstance or change shall have occurred that,
individually or in the aggregate with one or more other events, circumstances or changes,
have had or reasonably could be expected to have a Material Adverse Effect on the Company or
any other Group Company.

	2.3	 	Proceedings and Documents.

All corporate and other proceedings in connection with the transactions contemplated at the
Closing and all documents incident thereto shall be reasonably satisfactory in
form and substance to the Purchaser, and the Purchaser (or its legal counsel) shall have
received all such counterpart original and certified or other copies of such documents as
reasonably requested. The Group Companies shall have performed and complied with all
covenants, agreements, obligations and conditions contained in this Agreement that are
required to be performed or complied with by such Group Companies on or before the Closing.

 

3

 

	2.4	 	Authorizations.

The Warrantors shall have obtained all authorizations, approvals, waivers or permits of any
Person or any Governmental Authority necessary for the consummation of all of the
transactions contemplated by this Agreement and other Transaction Documents, including
without limitation any authorizations, approvals, waivers or permits that are required in
connection with the lawful issuance of the Shares and all such authorizations, approvals,
waivers and permits shall be effective as of the Closing. The Company shall have fully
satisfied (including with respect to rights of timely notification) or obtained enforceable
waivers in respect of any preemptive or similar rights directly or indirectly affecting any
of its shares or securities, as applicable.

	2.5	 	Business Plan.

The Company shall have submitted the Business Plan for the fiscal year of 2010 and 2011 to
the satisfaction of the Purchaser.

	2.6	 	Representations and Warranties.

The representations and warranties of the Warrantors contained in Schedule 5 shall
be true, complete and correct as of the Closing, except for those representations and
warranties that address matters only as of a particular date, which representations will
have been true and correct as of such particular date.

	2.7	 	Restated Articles.

The memorandum and articles of association of the Company shall have been amended as set
forth in the form attached hereto as Exhibit B (the “Restated Articles”). Such
Restated Articles shall have been duly adopted by all necessary actions of the Board of
Directors and/or the members of the Company, and shall have been duly filed with the
Registrar of Companies of the British Virgin Islands.

	2.8	 	Shareholders’ Agreement.

The Company, the Key Holders, the Domestic Company, the WFOE and the HK Co shall have
executed and delivered the Shareholders’ Agreement in the form attached hereto as
Exhibit C.

	2.9	 	Letters of Commitment and Non-Compete.

Each Founder shall have entered into a Letter of Commitment and Non-compete in the form and
substance attached hereto as Exhibit D.

 

4

 

	2.10	 	Board of Directors.

As of the Closing, the authorized size of the Board of Directors of the Company, HK Co and
WFOE shall be respectively three {3), and the Board of Directors of the Company, HK Co and
WFOE shall be comprised of the following members: DONG Defu , DONG Deyou and XU Enhai as
set forth in the register of directors, a copy of which shall be certified by the registered
agent and shall be delivered to the Purchaser. As of the Closing, the authorized size of the
Board of Directors of the Domestic Company shall be three (3), and the Board of Directors of
the Domestic Company shall be comprised of the following members: DONG Defu , DONG Deyou
and XU Enhai as registered with the relevant company registration authority in Beijing,
PRC.

	2.11	 	Employment Agreements.

Each Key Employee listed on Schedule 4 shall have entered into an employment
agreement {the “Employment Agreement”) with the WFOE in form and substance attached hereto
as Exhibit E.

Each employee of the WFOE or the Domestic Company other than the Key Employees shall enter
into an employment agreement with the WFOE or the Domestic Company (where applicable) in the
form and substance satisfactory and acceptable to the Purchaser.

	2.12	 	Proprietary Information and Inventions Assignment Agreements.

Each employee (including the Key Employees) and each consultant of each Group Company shall
have entered into a confidentiality and proprietary information agreement in the form and
substance satisfactory and acceptable to the Purchaser that shall include provisions
relating to the assignment of inventions, non-solicitation and non-competition, and the
Company shall provide evidence of such agreements to the Purchaser.

	2.13	 	Compliance Certificates.

The Purchaser shall have received (a) a certificate executed and delivered by a director of
the Company in the form attached hereto as Exhibit F-1, and (b) a certificate
executed and delivered by each Founder in the form attached as Exhibit F-2.

	2.14	 	Indemnification Agreement.

The Company shall have executed and delivered to the Purchaser the Indemnification Agreement
in the form and substance attached hereto as Exhibit G.

	2.15	 	Management Rights Letter.

The Company shall have executed and delivered to the Purchaser a Management Rights Letter in
the form attached hereto as Exhibit H.

	2.16	 	Compliance with Circular 75.

Each direct and indirect equity interest holder of the Company shall have complied with the
registration requirements under Circular 75 issued by the State Administration of Foreign
Exchange (“SAFE”) of the PRC on October 21, 2005, titled “Notice Regarding Certain
Administrative Measures on Financing and Inbound Investments by PRC Residents Through Offshore Special Purpose Vehicles”, effective as of
November 1, 2005 (“Circular 75”), or any successor rule or regulation under PRC law, in
relation to the transactions contemplated under this Agreement and the Plan of
Restructuring.

 

5

 

	2.17	 	WFOE; Documentation for the Restructuring.

The WFOE shall have been lawfully incorporated under the laws of the PRC. The Company, the
Key Holders, the Domestic Company and the WFOE shall have completed the key documentation in
connection with the transactions contemplated under the plan of restructuring substantially
in the form and substance as attached hereto as Exhibit A-1 (the “Plan of
Restructuring”), as may be amended from time to time as required by the Purchaser or as may
be approved by the Purchaser, such Plan of Restructuring shall have been completed, and each
of the Control Documents attached hereto as Exhibit A-2 shall have been executed and
delivered as of the Closing.

	2.18	 	Intellectual Property Assignment.

The Domestic Company shall have entered into an intellectual property assignment agreement
with the WFOE in form and substance attached hereto as Exhibit I.

	3.	 	CONDITIONS OF THE OBLIGATIONS OF THE COMPANY AT CLOSING.

The obligations of the Company to sell Shares to the Purchaser at the Closing are subject to
the fulfillment by such Purchaser, on or before the Closing, of each of the following
conditions, unless otherwise waived by writing:

	3.1	 	Representations and Warranties.

The representations and warranties of the Purchaser contained in Schedule 7 shall be
true, complete and correct in all material respects as of the Closing.

	3.2	 	Performance.

The Purchaser shall have performed and complied with all covenants, agreements, obligations
and conditions contained in this Agreement that are required to be performed or complied
with by it on or before the Closing.

	3.3	 	Qualifications.

All authorizations, approvals or permits, if any, of any Governmental Authority that are
required in connection with the lawful issuance and sale of the Share pursuant to this
Agreement shall be obtained and effective as of the Closing.

	3.4	 	Shareholders’ Agreement.

The Purchaser shall have executed and delivered the Shareholders’ Agreement.

 

6

 

	4.	 	REPRESENTATIONS AND WARRANTIES OF THE WARRANTORS.

The Company, the Group Companies and the Key Holders (collectively the “Warrantors”),
jointly and severally, represent and warrant to the Purchaser that the statements contained
in Schedule 5 attached hereto are true, correct and complete with respect to each
Warrantor on and as of the Execution Date, with the same effect as if made on and as of the
date of the Closing, except as set forth on the Disclosure Schedule attached hereto
as Schedule 6 (the “Disclosure Schedule”), which exceptions shall be deemed to be
representations and warranties as if made hereunder. The Disclosure Schedule shall be
arranged in sections corresponding to the numbered and lettered sections and subsections
contained in Schedule 5, and the disclosures in any section or subsection of the
Disclosure Schedule shall qualify other sections and subsections in Schedule 5 only
to the extent it is readily apparent from a reading of the disclosure that such disclosure
is applicable to such other sections and subsections.

	5.	 	REPRESENTATIONS AND WARRANTIES OF THE PURCHASER.

The Purchaser represents and warrants to the Company that the statements contained in
Schedule 7 attached hereto are true, correct and complete with respect to such
Purchaser as of the Closing.

	6.	 	UNDERTAKINGS.

	6.1	 	Ordinary Course of Business.

From the Execution Date until the earlier of the Termination Date or the Closing, the Key
Holders shall cause each of the Group Companies to be conducted in the ordinary course of
business and shall use its commercially reasonable efforts to maintain the present character
and quality of the business, including without limitation, its present operations, physical
facilities, working conditions, goodwill and relationships with lessors, licensors,
suppliers, customers, employees and independent contractors. Commencing with the execution
and delivery of this Agreement and continuing until the earlier of the Termination Date or
the Closing, no Group Company may take any of the actions specified in Section 6.1
of the Shareholders Agreement without satisfying the conditions as provided therein.

	6.2	 	Exclusivity.

From the Execution Date until the earlier of the Termination Date or the Closing, the Group
Companies agree not to (i) discuss the sale of any equity securities or any other
instruments convertible into the equity securities of any Group Company with any third
party, or (ii) to provide any information with respect to any Group Company to a third patty
in connection with a potential investment by such third party in any equity securities or
any other instruments convertible into the equity securities of such Group Company, or (iii)
to close any financing transaction of any equity securities or any other instruments
convertible into the equity securities of any Group Company with any third party (the
“Exclusivity Period”). This Section 6.2 shall terminate and be of no further force
and effect immediately following the Closing.

 

7

 

	6.3	 	Regulatory Filings.

The Group Companies and the Key Holders shall complete all filings and registrations with
the PRC authorities as required by the applicable Laws, including but not limited to the
relevant filing and registrations with the Ministry of Commerce, the State Administration of
Industry and Commerce, the SAFE, etc. Specifically, each direct and indirect equity interest
holder of the Company shall update its registration with the Beijing Branch of the SAFE in
accordance with the requirements of Circular 75 or any successor rule or regulation under
PRC law within thirty (30) days following the Closing.

	6.4	 	Use of Purchaser’s Name or Logo.

Except with the prior written authorization of the Purchaser, none of the Company or the
Group Companies shall be entitled to use, publish or reproduce the name, trademark or logo
of “Techfaith”, or any similar name, trademark and/or logo in any of their marketing,
advertising or promotion materials or otherwise for any marketing, advertising or
promotional purposes.

	7.	 	CURE OF BREACHES; INDEMNITY.

	7.1	 	In the event of (a) any breach or violation of or inaccuracy or misrepresentation in, any
representation or warranty made by the Warrantors contained herein or any of the other
Transaction Documents or (b) any breach or violation of any covenant or agreement contained
herein or any of the other Transaction Documents (each of (a) or (b), a “Breach”, the Key
Holders shall, jointly and severally, or cause the other Warrantors to, cure such Breach (to
the extent that such Breach is curable) to the satisfaction of the Purchaser (it being
understood that any cure shall be without recourse to cash or assets of any Group Companies).
Notwithstanding the foregoing, the Key Holders shall also, jointly and severally, indemnify
the Purchaser and its respective Affiliates, limited partners, members, stockholders,
employees, agents and representatives (each, an “Indemnitee”) for any and all losses,
liabilities, damages, liens, claims, obligations, penalties, settlements, deficiencies, costs
and expenses, including without limitation reasonable advisor’s fees and other reasonable
expenses of investigation, defense and resolution of any Breach paid, suffered, sustained or
incurred by the Indemnitees (each, an “Indemnifiable Loss”), resulting from, or arising out of
or due to, directly or indirectly, any Breach.

 

8

 

	7.2	 	Notwithstanding the foregoing, the Key Holders shall, jointly and severally, indemnify and
keep indemnified the Indemnitees at all times and hold them harmless against any and all
Indemnifiable Losses resulting from, or arising out of or due to, directly or indirectly, any
claim for tax which has been made or may hereafter be made against any Group Company wholly or
partly in respect of or in consequence of any event occurring or any income, profits or gains
earned, accrued or received by such Group Company on or before the Closing and any reasonable
costs, fees or expenses incurred and other liabilities which such Group Company may properly
incur in connection with the investigation, assessment or the contesting of any claim, the
settlement of any claim for tax, any legal proceedings in which any Group Company claims for
tax and in which an arbitration award or judgment is given for such Group Company and the
enforcement of any such arbitration award or judgment whether or not such tax is chargeable
against or attributable to any other person, provided, however, that the Key Holders
shall be under no liability in respect of taxation:

	 	(a)	 	that is promptly cured without recourse to cash or other assets of any Group
Company;

	 	(b)	 	to the extent that provision, reserve or allowance has been made for such tax
in the audited consolidated financial statement of the Company;

	 	(c)	 	if it has arisen in and relates to the ordinary course of business of the Group
Companies;

	 	(d)	 	to the extent that the liability arises as a result only of a provision or
reserve in respect of the liability made in the Financial Statement being insufficient
by reason of any increase in rates of tax announced after the Closing with
retrospective effect; and

	 	(e)	 	to the extent that the liability arises as a result of legislation which comes
into force after the Closing and which is retrospective in effect.

The survival period for any indemnity obligation relating to claims for tax matters arising
under this Section 7.2 shall be the applicable statue of limitations for tax claims.

	7.3	 	In the event that an Indemnitee suffers an Indemnifiable Loss as provided in Section
7.1 or 7.2 and the Key Holders are either unwilling or unable to fulfill their
obligations under Section 7.1 or 7.2 to indemnify the Indemnitees for the full
amount of such Indemnifiable Loss within sixty (60) days of receipt of written notice thereof
from the Purchaser, then the Company (or any other Warrantor selected by a majority in
interest of the Indemnitees) shall indemnify the Indemnitees such that the Indemnitees shall
receive the full amount of such Indemnifiable Loss. Any indemnification provided by the
Warrantors other than the Key Holders pursuant to this Section 7.3 shall not prejudice
or otherwise affect the right of the Indemnitees to seek indemnification from the Key Holders
pursuant to Section 7.1 or 7.2; provided, however, that to the extent the
Indemnitees are able to recover any Indemnifiable Loss fiom the Key Holders, the Warrantors
other than the Key Holders shall not be obligated to indemnify the Indemnitees with respect to
such amount.

	7.4	 	If the Purchaser or other Indemnitee believes that it has a claim that may give rise to an
obligation of any Wanantor pursuant to this Section 7, it shall give prompt notice
thereof to the Warrantors stating specifically the basis on which such claim is being made,
the material facts related thereto, and the amount of the claim asserted. In the event of a
third party claim against an Indemnitee for which such Indemnitee seeks indemnification from
the Warrantors pursuant to this Section 7, no settlement shall be deemed conclusive
with respect to whether there was an Indemnifiable Loss or the amount of such Indemnifiable
Loss unless such settlement is consented to by one Key Holder acting on behalf of the other
Key Holders, which shall not be unreasonably withheld. Any dispute related to this Section
7 shall be resolved pursuant to Section 8.15 of this Agreement.

	7.5	 	This Section 7 shall not be deemed to preclude or otherwise limit the Purchaser in
any way the exercise of any other rights or pursuit of other remedies for any breach of this
Agreement or any other Transaction Documents.

 

9

 

	8.	 	MISCELLANEOUS.

	8.1	 	Survival of Warranties.

Unless otherwise set forth in this Agreement, the representations and warranties of the
Warrantors contained in or made pursuant to this Agreement shall survive the execution and
delivery of this Agreement and the Closing and shall in no way be affected by any
investigation or knowledge of the subject matter thereof made by or on behalf of the
Purchaser or the Company.

	8.2	 	Confidentiality.

	 	(a)	 	Disclosure of Terms. The terms and conditions of this Agreement, any
term sheet or memorandum of understanding entered into pursuant to the transactions
contemplated hereby, all exhibits and schedules attached hereto and thereto, and the
transactions contemplated hereby and thereby (collectively, the “Transaction Terms”),
including their existence, shall be considered confidential information and shall not
be disclosed by any Party hereto to any third party except as permitted in accordance
with the provisions set forth below.

	 	(b)	 	Permitted Disclosures. Notwithstanding the foregoing, the Company may
disclose the transaction terms to its current shareholders, employees, bankers,
lenders, accountants and legal counsels, in each case only where such persons or
entities are under appropriate nondisclosure obligations substantially similar to those
set forth in this Section 8.2, or to any person or entity to which disclosure
is approved in writing by the Purchaser, which such approval is not to be unreasonably
withheld. The Purchaser may disclose (x) the existence of the investment and the
Transaction Terms to any Affiliate, partner, limited partner, former partner, potential
partner or potential limited partner of the Purchaser or other third patties and (y)
the fact of the investment to the public, in each case as it deems appropriate in its
sole discretion. Any Party hereto may also provide disclosure in order to comply with
applicable Laws, as set forth in Section 8.2(c) below.

	 	(c)	 	Legally Compelled Disclosure. In the event that any Party is requested
or becomes legally compelled (including without limitation, pursuant to any applicable
tax, securities, or other Laws and regulations of any jurisdiction) to disclose the
existence of this Agreement or content of any of the Transaction Terms, such Party (the
“Disclosing Party”) shall provide the other Parties with prompt written notice of that
fact and shall consult with the other Patties regarding such disclosure. At the request
of another Party, the Disclosing Party shall, to the extent reasonably possible and
with the cooperation and reasonable efforts of the other Parties, seek a protective
order, confidential treatment or other appropriate remedy. In any event, the Disclosing
Party shall furnish only that portion of the information that is legally required and
shall exercise reasonable efforts to obtain reliable assurance that confidential
treatment will be accorded such information.

 

10

 

	 	(d)	 	Other Exceptions. Notwithstanding any other provision of this
Section 8.2, the confidentiality obligations of the Parties shall not apply to:
(i) information
which a restricted Party learns from a third party having the right to make the
disclosure, provided the restricted Party complies with any restrictions imposed by
the third party; (ii) information which is rightfully in the restricted Party’s
possession prior to the time of disclosure by the protected Party and not acquired
by the restricted Patty under a confidentiality obligation; or (iii) information
which enters the public domain without breach of confidentiality by the restricted
Party.

	 	(e)	 	Press Releases, Etc. No announcements regarding the Purchaser’s
investment in the Company may be made by any Party hereto in any press conference,
professional or trade publication, marketing materials or otherwise to the public
without the prior written consent of the Purchaser.

	 	(f)	 	Other Information. The provisions of this Section 8.2 shall
terminate and supersede the provisions of any separate nondisclosure agreement executed
by any of the Parties with respect to the transactions contemplated hereby

	8.3	 	Transfer, Successors and Assigns.

The terms and conditions of this Agreement shall inure to the benefit of and be binding upon
the respective successors and assigns of the Parties. Save as expressly provided in this
Agreement, nothing in this Agreement, express or implied, is intended to confer upon any
party other than the Parties hereto or their respective successors and assigns any rights,
remedies, obligations, or liabilities under or by reason of this Agreement.

	8.4	 	Governing Law.

This Agreement shall be governed by and construed in accordance with the Law of Hong Kong as
to matters within the scope hereof, without regard to its principles of conflicts of laws.

	8.5	 	Counterparts; Facsimile.

This Agreement may be executed and delivered by facsimile or other electronic signature and
in two or more counterparts, each of which shall be deemed an original, but all of which
together shall constitute one and the same instrument.

	8.6	 	Titles and Subtitles.

The titles and subtitles used in this Agreement are used for convenience only and are not to
be considered in construing or interpreting this Agreement.

	8.7	 	Notices.

All notices and other communications given or made pursuant to this Agreement shall be in
writing and shall be deemed effectively given: (a) upon personal delivery to the Party to be
notified, (b) when sent by confirmed electronic mail or facsimile if sent during normal
business hours of the recipient, and if not so confirmed, then on the next business day, (c)
five (5) days after having been delivered by registered or certified mail, return receipt
requested, postage prepaid, or (d) one (1) day after delivery by an internationally
recognized overnight courier, specifying next day
delivery, with written verification of receipt. All communications shall be sent to the
respective Parties at their address as set forth on the signature pages, Schedule 1
or Schedule 2, as the case may be, or to such e-mail address, facsimile number or
address as subsequently modified by written notice given in accordance with this Section
8.7.

 

11

 

	8.8	 	No Finder’s Fees.

Each Party represents that it neither is nor will be obligated for any finder’s fee or
commission in connection with this transaction The Purchaser agrees to indemnify and to hold
harmless the Company from any liability for any commission or compensation in the nature of
a finder’s or broker’s fee arising out of this transaction (and the costs and expenses of
defending against such liability or asserted liability) for which the Purchaser or any of
its officers, employees, or representatives is responsible. The Company agrees to indemnify
and hold harmless the Purchaser from any liability for any commission or compensation in the
nature of a finder’s or broker’s fee arising out of this transaction (and the costs and
expenses of defending against such liability or asserted liability) for which the Company or
any of its officers, employees or representatives is responsible.

	8.9	 	Fees and Expenses.

	 	(a)	 	The Company shall pay all of its own costs and expenses incurred in connection
with the negotiation, execution, delivery and performance of this Agreement and other
Transaction Documents and the transactions contemplated hereby and thereby.

	 	(b)	 	The Company shall pay the legal costs and expenses incurred or to be incurred
by the Purchaser, up to US$50,000 plus taxes and disbursements, including all
reasonable costs and expenses in conducting legal due diligence investigations on the
Group Companies and in preparing, negotiating and executing all documentation by the
outside legal counsel of the Purchaser, which may be deducted at the Purchaser election
at Closing from the cash consideration payable by the Purchaser.

	 	(c)	 	In the event that the Closing does not proceed as a result of a termination by
the Purchaser in accordance with Section 1.4(a), (c) or (d),
the Company shall bear all the legal costs and expenses incurred by or on behalf of the
Purchaser in the preparation of the agreements(s) and all other documents.

	8.10	 	Attorney’s Fees.

If any action at law or in equity (including arbitration) is necessary to enforce or
interpret the terms of any of the Transaction Documents, the prevailing Party shall be
entitled to reasonable attorney’s fees, costs and necessary disbursements in addition to any
other relief to which such Party may be entitled.

	8.11	 	Amendments and Waivers.

Any term of this Agreement may be amended, terminated or waived only with the written
consent of the Company and the Purchaser. Any amendment or waiver
effected in accordance with this Section 8.11 shall be binding upon the Company, the
Key Holders, the Purchaser, and each transferee of the Shares and each future holder of all
such securities.

 

12

 

	8.12	 	Severability.

The invalidity or unenforceability of any provision hereof shall in no way affect the
validity or enforceability of any other provision.

	8.13	 	Delays or Omissions.

No delay or omission to exercise any right, power or remedy accruing to any Party under this
Agreement, upon any breach or default of any other Party under this Agreement, shall impair
any such right, power or remedy of such non-breaching or non-defaulting Party nor shall it
be construed to be a waiver of any such breach or default, or an acquiescence therein, or of
or in any similar breach or default thereafter occurring; nor shall any waiver of any single
breach or default be deemed a waiver of any other breach or default theretofore or
thereafter occurring. Any waiver, permit, consent or approval of any kind or character on
the part of any Party of any breach or default under this Agreement, or any waiver on the
part of any Party of any provisions or conditions of this Agreement, must be in writing and
shall be effective only to the extent specifically set forth in such writing. All remedies,
either under this Agreement or by law or otherwise afforded to any Patty, shall be
cumulative and not alternative.

	8.14	 	Entire Agreement.

This Agreement (including the Schedules and Exhibits hereto), the Restated Articles and the
other Transaction Documents constitute the fukk and entire understanding and agreement
between the Patties with respect to the subject matter hereof, and any other written or oral
agreement relating to the subject matter hereof existing between the Parties are expressly
canceled.

	8.15	 	Dispute Resolution.

	 	(a)	 	Any dispute, controversy or claim arising out of or relating to this Agreement,
or the interpretation, breach, termination or validity hereof, shall first be subject
to resolution through consultation of the parties to such dispute, controversy or
claim. Such consultation shall begin within seven (7) days after one Party hereto has
delivered to the other Parties involved a written request for such consultation. If
within thirty (30) days following the commencement of such consultation the dispute
cannot be resolved, the dispute shall be submitted to arbitration upon the request of
any Party with notice to the other Parties.

	 	(b)	 	The arbitration shall be conducted in Hong Kong under the auspices of the Hong
Kong International Arbitration Centre (the “HKIAC”) There shall be three arbitrators.
The complainant and the respondent to such dispute shall each select one arbitrator
within thirty (.30) days after giving or receiving the demand for arbitration. Such
arbitrators shall be freely selected, and the Parties shall not be limited in their
selection to any prescribed list. The Chairman of the HKIAC shall select the third
arbitrator, who shall be qualified
to practice Law in Hong Kong. If either party to the arbitration does not appoint
an arbitrator who has consented to participate within thirty (30) days after
selection of the first arbitrator, the relevant appointment shall be made by the
Chairman of the HKIAC.

 

13

 

	 	(c)	 	The arbitration proceedings shall be conducted in English. The arbitration
tribunal shall apply the Arbitration Rules of the HKIAC in effect at the time of the
arbitration. However, if such rules are in conflict with the provisions of this
Section 8.15, including the provisions concerning the appointment of
arbitrators, the provisions of this Section 8.15 shall prevail.

	 	(d)	 	The arbitrators shall decide any dispute submitted by the parties to the
arbitration strictly in accordance with the substantive Law of Hong Kong and shall not
apply any other substantive law.

	 	(e)	 	Each Party hereto shall cooperate with any party to the dispute in making full
disclosure of and providing complete access to all information and documents requested
by such party in connection with such arbitration proceedings, subject only to any
confidentiality obligations binding on the Party receiving the request.

	 	(f)	 	The award of the arbitration tribunal shall be final and binding upon the
disputing parties, and any party to the dispute may apply to a court of competent
jurisdiction for enforcement of such award.

	 	(g)	 	Any party to the dispute shall be entitled to seek preliminary injunctive
relief, if possible, from any court of competent jurisdiction pending the constitution
of the arbitral tribunal.

	8.16	 	No Commitment for Additional Financing.

The Company acknowledges and agrees that no Purchaser has made any representation,
undertaking, commitment or agreement to provide or assist the Company in obtaining any
financing, investment or other assistance, other than the purchase of the Shares as set
forth herein and subject to the conditions set forth herein. In addition, the Company
acknowledges and agrees that (i) no oral statements made by the Purchaser or its
representatives on or after the date of this Agreement shall create an obligation,
commitment or agreement to provide or assist the Company in obtaining any financing or
investment, (ii) the Company shall not rely on any such statement by the Purchaser or its
representatives and (iii) an obligation, commitment or agreement to provide or assist the
Company in obtaining any financing or investment may only be created by a written agreement,
signed by such Purchaser and the Company, setting forth the terms and conditions of such
financing or investment and stating that the Parties intend for such writing to be a binding
obligation or agreement. The Purchaser shall have the right, in it sole and absolute
discretion, to refuse or decline to participate in any other financing of or investment in
the Company, and shall have no obligation to assist or cooperate with the Company in
obtaining any financing, investment or other assistance.

 

14

 

	8.17	 	Rights Cumulative.

Each and all of the various rights, powers and remedies of a Party will be considered to be
cumulative with and in addition to any other rights, powers and remedies which such Party
may have at law or in equity in the event of the breach of any of the terms of this
Agreement The exercise or partial exercise of any right, power or remedy will neither
constitute the exclusive election thereof not the waiver of any other right, power or remedy
available to such Party.

	8.18	 	No Waiver.

Failure to insist upon strict compliance with any of the terms, covenants, or conditions
hereof will not be deemed a waiver of such term, covenant, or condition, nor will any waiver
or relinquishment of, or failure to insist upon strict compliance with, any right, power or
remedy power hereunder at any one or more times be deemed a waiver or relinquishment of such
right, power or remedy at any other time or times.

	8.19	 	No Presumption.

The Parties acknowledge that any applicable law that would require interpretation of any
claimed ambiguities in this Agreement against the Party that drafted it has no application
and is expressly waived. If any claim is made by a Party relating to any conflict, omission
or ambiguity in the provisions of this Agreement, no presumption or burden of proof or
persuasion will be implied because this Agreement was prepared by or at the request of any
Party or its counsel.

	8.20	 	Third Party Beneficiaries.

Each of the Indemnitees shall be a third party beneficiary of this Agreement with the full
ability to enforce Section 7 of this Agreement as if it were a Party hereto.

[Remainder of Page Intentionally Left Blank]

 

15

 

IN WITNESS WHEREOF, the Parties have executed this Share Purchase Agreement as of the date
firs written above.

COMPANY

CITYLEAD LIMITED

	 	 	 	 	 
	By:  	/s/ XU Enhai
 	 	 
	 	Name:  	XU Enhai 	 	 
	 	Capacity: Director 	 	 

HK CO

QIGI&BODEE TECHNOLOGY LIMITED

	 	 	 	 	 
	By:  	 /s/ XU Enhai
 	 	 
	 	Name:  	XU Enhai 	 	 
	 	Capacity: Director 	 	 

 

16

 

IN WITNESS WHEREOF, the Parties have executed this Share Purchase Agreement as of the date
firs written above.

WFOE

QIGI&BODEE INTERNATIONAL TECHNOLOGY (BEIJING) CO., LTD.

	 	 	 	 	 
	By:  	/s/ XU Enhai
 	 	 
	 	Name:  	XU Enhai 	 	 
	 	Capacity: Board Chairman 	 	 

 

17

 

IN WITNESS WHEREOF, the Parties have executed this Share Purchase Agreement as of the date
firs written above.

DOMESTIC COMPANY

QIGI&BODEE TECHNOLOGY (BEIJING) CO., LTD.

	 	 	 	 	 
	By:  	/s/ XU Enhai
 	 	 
	 	Name:  	XU Enhai 	 	 
	 	Capacity: Board Chairman 	 	 

 

18

 

IN WITNESS WHEREOF, the Parties have executed this Share Purchase Agreement as of the date
firs written above.

KEY HOLDERS

ACTIVE CENTURY HOLDINGS LIMITED

	 	 	 	 	 
	By:  	/s/ XU Enhai
 	 	 
	 	Name:  	XU Enhai 	 	 
	 	Capacity: Director 	 	 

XU ENHAI

	 	 	 	 	 
	By:  	/s/ XU Enhai
 	 	 

HAN DELING

	 	 	 	 	 
	By:  	/s/ HAN Deling
 	 	 

 

19

 

IN WITNESS WHEREOF, the Parties have executed this Share Purchase Agreement as of the date
firs written above.

PURCHASER

CHINA TECHFAITH WIRELESS COMMUNICATION TECHNOLOGY LIMITED

	 	 	 	 	 
	By:  	/s/ Dong Defu
 	 	 
	 	Name:  	DONG Defu 	 	 
	 	Capacity: Director 	 	 

 

20

 

SCHEDULE AND EXHIBITS

	 	 	 
	Schedules	 	 
	 
	 	 
	Schedule 1

	 	Schedule of Purchaser
	 
	 	 
	Schedule 2

	 	Schedule of Key Holders
	 
	 	 
	Schedule 3

	 	Definitions
	 
	 	 
	Schedule 4

	 	Schedule of Key Employees
	 
	 	 
	Schedule 5

	 	Representations and Warranties of the Warrantors
	 
	 	 
	Schedule 6

	 	Disclosure Schedule
	 
	 	 
	Schedule 7

	 	Representations and Warranties of the Purchaser
	 
	 	 
	Schedule 8

	 	Capitalization Table

	 	 	 
	Exhibits	 	 
	 
	 	 
	Exhibit A-1

	 	Plan of Restructuring
	 
	 	 
	Exhibit A-2

	 	Control Documents
	 
	 	 
	Exhibit B

	 	Form of Restated Articles
	 
	 	 
	Exhibit C

	 	Shareholders’ Agreement
	 
	 	 
	Exhibit D

	 	Letter of Commitment and Non-Compete
	 
	 	 
	Exhibit E

	 	Form of Employment Agreement
	 
	 	 
	Exhibit F

	 	Form of Compliance Certificates
	 
	 	 
	Exhibit G

	 	Form of Indemnification Agreement
	 
	 	 
	Exhibit H

	 	Form of Management Rights Letter
	 
	 	 
	Exhibit I

	 	Form of Intellectual Property Assignment Agreement

 

21

 

SCHEDULE 1

SCHEDULE OF PURCHASER

	 	 	 	 	 	 	 	 	 
	Purchaser	 	Purchase Price	 	 	Number of Shares	 
	CHINA TECHFAITH WIRELESS COMMUNICATION TECHNOLOGY LIMITED
	 	US$	500,000	 	 	 	4	 
	Address for Notices:
	 	 	—	 	 	 	—	 
	P. O. Box 309GT, Ugland House, South Church Street, George Town, Grand Cayman, Cayman Islands
	 	 	 	 	 	 	 	 

 

22

 

SCHEDULE 2

SCHEDULE OF KEY HOLDERS

	 	 	 
	Name	 	Addresses and Fax No. for Notice
	ACTIVE CENTURY HOLDINGS LIMITED

	 	Address: PO. Box 957, Offshore Incorporations Centre, Road Town, Tortola, British Virgin Islands

Facsimile: (8610) 6263-8372
	XU, ENHAI

	 	Address: No. 2399 Liaoning Road, Chaoyang District, Changchun City, Jilin Province, PRC

Facsimile: (8610) 6263-8372
	HAN, DELING

	 	Address: 402 Hu, Unit 4, No 2 Building, No. 49 Dunhua Road, Shibei District, Qingdao City, Shandong Province, PRC

Facsimile: (8610) 6263-8372

 

23

 

SCHEDULE 3

DEFINITIONS

“Affiliate” means, with respect to any specified Person, any other Person who or which, directly or
indirectly, controls, is controlled by, or is under common control with such specified Person,
including, without limitation, any partner, officer, director, member or employee of such Person
and any venture capital fund now or hereafter existing that is controlled by or under common
control with one or more general partners or managing members of, or shares the same management
company with, such Person.

“Agreement” has the meaning ascribed to it in Preamble to this Agreement.

“Breach” has the meaning set forth in Section 7.1.

“Business Day” means any day, other than a Saturday, Sunday or other day on which the commercial
banks in Hong Kong or Beijing are authorized or required to be closed for the conduct of regular
banking business.

“Business Plan” has the meaning set forth in Section 25 of Schedule 5.

“Circular 75” has the meaning ascribed to it in Section 2.16.

“Class B Ordinary Shares” means Class B Ordinary Shares of the Company, US$1 per share, which
shares are convertible into Company Ordinary Shares in accordance with the terms of Restated
Articles

“Closing” has the meaning ascribed to it in Section 1.2(a).

“Company” has the meaning ascribed to it in the Preamble to this Agreement.

“Company Intellectual Property” means all patents, patent applications, trademarks, trademark
applications, service marks, trade names, copyrights, trade secrets, licenses, domain names, mask
works, information and proprietary rights and processes as are necessary to the conduct of the
Company’s business as now conducted and as presently proposed to be conducted.

“Confidential Information Agreements” has the meaning ascribed to it in Section 19 of
Schedule 5.

“Contract” means a legally binding contract, agreement, understanding, indenture, note, bond, loan,
instrument, lease, mortgage, franchise or license.

“Control” of a given Person means the power or authority, whether exercised or not, to direct
the business, management and policies of such Person, directly or indirectly, whether through the
ownership of voting securities, by contract or otherwise, which power or authority shall
conclusively be presumed to exist upon possession of beneficial ownership or power to direct the
vote of more than fifty percent (50%) of the votes entitled to be cast at a meeting of the members
or shareholders of such Person or power to control the composition of a majority of the board of
directors of such Person; the terms “Controlling” and “Controlled” have meanings correlative to the
foregoing.

 

24

 

“Control Documents” means the following set of contracts in form and substance attached hereto as
Exhibit A-2: the Framework Agreement, the Exclusive Business Cooperation Agreement, the Exclusive
Option Agreement, the Proxy and the Equity Pledge Agreement.

“Convertible Securities” means, with respect to any specified Person, Securities convertible or
exchangeable into any shares of any class of such specified Person, however described and whether
voting or non-voting.

“Directors” means the members of the Board of Directors.

“Disclosing Party” has the meaning ascribed to it in Section 8.2(c).

“Disclosure Schedule” has the meaning ascribed to it in Section 4.

“Domestic Company” has the meaning ascribed to it in Preamble to this Agreement.

“Employee Benefit Plans” has the meaning ascribed to it in Section 16.7 of Schedule 5.

“Employment Agreements” has the meaning ascribed to it in Section 2.11.

“Exclusivity Period” has the meaning ascribed to it in Section 6.2.

“Execution Date” shall mean the date of this Agreement.

“Financial Statements” shall mean the consolidated balance sheet, income statement and statement of
cash flows, prepared in accordance with the PRC generally accepted accounting principles (“PRC
GAAP”) and applied on a consistent basis throughout the periods indicated.

“Founder” or “Founders” shall mean each of XU, ENHAI and HAN, DELING as listed in Schedule 2.

“Founders Holdco” means ACTIVE CENTURY HOLDINGS LIMITED as listed in Schedule 2.

“Governmental Authority” means the government of any nation, province, state, city, locality or
other political subdivision of any thereof, any entity exercising executive, legislative, judicial,
regulatory or administrative functions of or pertaining to government, regulation or compliance,
and any corporation or other entity owned or controlled, through share or capital ownership or
otherwise, by any of the foregoing.

“Group Companies” means the Company, the HK Co, the WFOE, the Domestic Company and any other direct
or indirect Subsidiary of any Group Company, whether in existence now or in the future,
collectively, and “Group Company” means any one of them.

“GC Product or Service” has the meaning ascribed to it in Section 8.7 of Schedule 5.

“HKIAC” has the meaning ascribed to it in Section 8.15(b).

“Hong Kong” means the Hong Kong Special Administrative Region of the PRC.

“Indemnifiable Loss” has the meaning set forth in Section 7.1.

“Indemnitee” has the meaning set forth in Section 7.1.

 

25

 

“Intellectual Property” means all patents, patent applications, trademarks, service marks, trade
names, copyrights, trade secrets, processes, compositions of matter, formulas, designs, inventions,
proprietary rights, know-how and any other confidential or proprietary information owned or
otherwise used by the Company Group.

“Key Employee” means each of the Persons listed in Schedule 4.

“Knowledge” including the phrase “to the Warrantors’ knowledge” shall mean the actual knowledge
after reasonable investigation of the Founders.

“Law” means any constitutional provision, statute or other law, rule, regulation, official policy
or interpretation of any Governmental Authority and any injunction, judgment, order, ruling,
assessment or writ issued by any Governmental Authority.

“Lien” means any mortgage, pledge, claim, security interest, encumbrance, title defect, lien,
charge or other restriction or limitation.

“Material Adverse Effect” means a material adverse effect on the business, assets (including
intangible assets), liabilities, financial condition, property, prospects or results of operations
of the Group Companies, taken as a whole.

“Material Agreements” has the meaning ascribed to such term in Section 10.1 of Schedule 5.

“Order” means any order, injunction, judgment, decree, ruling, writ, assessment or arbitration
award of a Governmental Authority.

“Ordinary Share” means Ordinary Shares of the Company, US$1 per share.

“Party” or “Parties” has the meaning set forth in the Preamble hereof.

“Person” means any individual, corporation, partnership, limited partnership, proprietorship,
association, limited liability company, firm, trust, estate or other enterprise or entity

“Plan of Restructuring” has the meaning ascribed to it in Section 2.17.

“PRC” or “China” means the Peoples’ Republic of China, excluding Hong Kong, the Macau Special
Administrative Region and Taiwan.

“Projections” has the meaning ascribed to such term in Section 24 of Schedule 5.

“Public Official” means an employee of a Governmental Authority, a member of a political party, a
political candidate, an officer of a public international organization, or an officer or employee
of a state-owned enterprise, including a PRC state-owned enterprise.

“Public Software” has the meaning ascribed to it in Section 8.7 of Schedule 5.

“Purchaser” has the meaning ascribed to such term in Preamble hereof.

“Purchase Price” has the meaning ascribed to it in Section 1.1.

 

26

 

“Related Party Transaction” means any transaction between any Group Company on the one hand, and
any Founder, or any Affiliate of any Founder on the other hand, other than transactions arising in
the ordinary course of an employer/employee relationship

“Reserve” or “Reservation” has the meaning ascribed to such term in Section 4 of
Schedule 5.

“Restated Articles” has the meaning ascribed to such term in Section 2.7.

“RMB” means the Renminbi, the lawful currency of the PRC.

“SAFE” has the meaning ascribed to it in Section 2.16.

“Securities Act” means the United States Securities Act of 1933, as amended, and the rules and
regulations promulgated thereunder (or comparable Laws in jurisdictions other than the United
States).

“Shareholders’ Agreement” means the agreement proposed to be entered into among the Company, the
Key Holders, the Purchaser and certain other parties thereto, in the form of Exhibit C
attached to this Agreement.

“Shares” has the meaning ascribed to it in Section 1.1.

“Subsidiary” or “subsidiary” means, as of the relevant date of determination, with respect to any
Person (the “subject entity”), (i) any Person (x) more than 50% of whose shares or other interests
entitled to vote in the election of directors or (y) more than a 50% interest in the profits or
capital of such Person are owned or controlled directly or indirectly by the subject entity or
through one (1) or more Subsidiaries of the subject entity, (ii) any Person whose assets, or
portions thereof, are consolidated with the net earnings of the subject entity and are recorded on
the books of the subject entity for financial reporting purposes in accordance with the PRC GAAP or
U S. GAAP, or (iii) any Person with respect to which the subject entity has the power to otherwise
direct the business and policies of that entity directly or indirectly through another subsidiary.
For the avoidance of doubt, the Subsidiaries of the Company shall include the Group Companies.

“Techfaith” means China Techfaith Wireless Communication Technology Limited, including their
respective successors and permitted assigns.

“Transaction Documents” means this Agreement, the Shareholders’ Agreement, the Control Documents
and any other agreements, instruments or documents entered into in connection with this Agreement.

“Transaction Terms” has the meaning ascribed to such term in Section 8.2(a).

“US$” means the United States dollar, the lawful currency of the United States of America.

“Warrantors” has the meaning ascribed to such term in Section 4.

“WFOE” has the meaning ascribed to it in Recitals to this Agreement.

 

27

 

SCHEDULE 4 

SCHEDULE OF KEY EMPLOYEES

	 	 	 
	NAME:	 	ID Number
	•    XU Enhai

	 	 220224197109224214
	•    KE Zhonghui

	 	 341021197807242418
	•    RAO Xiaobo

	 	 6012219701216721X

 

28

 

SCHEDULE 5 

REPRESENTATIONS AND WARRANTIES OF THE WARRANTORS

	9.	 	Organization, Good Standing, Corporate Power and Qualification.

Each Group Company is a corporation duly organized, validly existing and in good standing
under the laws of their jurisdiction of incorporation and has all requisite corporate power
and authority to carry on its business as presently conducted and as proposed to be
conducted. Each Group Company is duly qualified to transact business and is in good standing
in each jurisdiction in which the failure to so qualify would have a Material Adverse
Effect.

	10.	 	Capitalization of the Company.

The authorized shares of the Company consist, immediately prior to the Closing, of:

	10.1	 	49,000 Ordinary Shares and 1,000 Class B Ordinary Shares, of which 96 Ordinary Shares are
issued and outstanding, immediately prior to the Closing. All of the outstanding Ordinary
Shares have been duly authorized, are fully paid and non-assessable and were issued in
compliance with all applicable securities laws. The Company holds no treasury shares.

	10.2	 	Schedule 8 sets forth the capitalization of the Company immediately following the
Closing including the number of shares of the following: (i) issued and outstanding Ordinary
Shares and Class B Ordinary Shares, and (ii) warrants or stock purchase rights, if any. Except
for the rights provided in the Shareholders’ Agreement, there are no outstanding options,
warrants, rights (including conversion or preemptive rights and rights of first refusal or
similar rights) or agreements, orally or in writing, to purchase or acquire from the Company
any Ordinary Share or any securities convertible into or exchangeable for Ordinary Share.

	10.3	 	The Company is the sole legal and beneficial owner of one hundred percent (100%) of the
equity interest of the HK Co. The HK Co is the sole legal and beneficial owner of one hundred
percent (100%) of’ the equity interest of the WFOE.

	10.4	 	The Founders and the Founder Holdco are the sole legal and beneficial owners of the Ordinary
Shares of the Company.

	11.	 	Subsidiaries.

Except as set forth in Section 3 of the Disclosure Schedule, the Company and
each Group Company do not currently own or control, directly or indirectly, any interest in
any other company, corporation, partnership, trust, joint venture, association, or other
business entity. Neither the Company nor any Group Company is a participant in any joint
venture, partnership or similar arrangement.

 

29

 

	12.	 	Authorization. 

All corporate action required to be taken by each Group Company’s board of directors and
shareholders in order to authorize each respective Group Company to enter into the
Transaction Documents to which each such Group Company is a party, and to
issue the Shares at the Closing, has been taken or will be taken prior to the Closing. All
action on the part of the officers of each Group Company necessary for the execution and
delivery of the Transaction Documents, the performance of all obligations of such Group
Company under the Transaction Documents to be performed as of the Closing, and the issuance
and delivery of the Shares has been taken or will be taken prior to the Closing. All action
on the part of the officers of each Group Company necessary for the performance of all
obligations of such Group Company under the Transaction Documents to be performed as of the
Closing has been taken or will be taken prior to the Closing. The Transaction Documents,
when executed and delivered by each Group Company, shall constitute valid and legally
binding obligations of each Group Company, enforceable against each Group Company in
accordance with their respective terms except (i) as limited by applicable bankruptcy,
insolvency, reorganization, moratorium, fraudulent conveyance, or other laws of general
application relating to or affecting the enforcement of creditors’ rights generally, (ii) as
limited by laws relating to the availability of specific performance, injunctive relief, or
other equitable remedies, or (iii) to the extent the indemnification provisions contained in
the Shareholders’ Agreement and the Indemnification Agreement may be limited by applicable
securities laws. The issuance of any Shares is not subject to any preemptive rights or
rights of first refusal, or if any such preemptive rights or rights of first refusal exist,
waiver of such rights has been obtained from the holders thereof. For the purpose only of
this Agreement, “reserve,” “reservation” or similar words with respect to a specified number
of Ordinary Shares of the Company shall mean that the Company shall, and the Board of
Directors shall procure that the Company shall, refrain from issuing such number of shares
so that such number of shares will remain in the authorized but unissued share capital of
the Company until the conversion rights of the holders of any Convertible Securities
exercisable for such shares are exercised in accordance with the Restated Articles or
otherwise.

	13.	 	Valid Issuance of Shares.

	13.1	 	The Shares, when issued, sold and delivered in accordance with the terms and for the
consideration set forth in this Agreement, will be validly issued, fully paid and
nonassessable and free of restrictions on transfer other than restrictions on transfer under
the this agreement, the Shareholders’ Agreement, applicable securities laws and liens or
encumbrances created by or imposed by the Purchaser. Subject in part to the accuracy of the
representations of the Purchaser in Schedule 7 of this Agreement, the Shares will be
issued in compliance with all applicable securities laws. Immediately following the Closing,
the Purchaser will be the sole legal and beneficial owner of; and will have good and
marketable title to the Shares.

	13.2	 	All presently outstanding Ordinary Shares of the Company were duly and validly issued, fully
paid and non-assessable, and are free and clear of any liens and free of restrictions on
transfer (except for any restrictions on transfer under applicable securities laws) and have
been issued in compliance in all material respects with the requirements of all applicable
securities laws and regulations, including, to the extent applicable, the Securities Act.

 

30

 

	14.	 	Governmental Consents and Filings.

No consent, approval, order or authorization of or registration, qualification, designation,
declaration or filing with, any Governmental Authority is required on the part of the
Company is required in connection with the valid execution, delivery and consummation of the
transactions contemplated by this Agreement, Shareholder’s Agreement or the offer, sale,
issuance or reservation for issuance of the Shares.

	15.	 	Litigation.

There is no claim, action, suit, proceeding, arbitration, complaint, charge or investigation
pending or to the Warrantors’ knowledge, currently threatened (i) against any Group Company
or any officer, director or Employee of any Group Company that would either individually or
in aggregate, reasonably be expected to have a Material Adverse Effect; or (ii) to the
Warrantors’ knowledge, that questions the validity of the Transaction Documents or the right
of any Group Company to enter into them, or to consummate the transactions contemplated by
the Transaction Documents. None of the Group Companies, its officers or directors, is a
party or is named as subject to the provisions of any order, writ, injunction, judgment or
decree of any court or government agency or instrumentality which would either individually
or in the aggregate, reasonably be expected to have a Material Adverse Effect. There is no
action, suit, proceeding or investigation by any Group Company pending or which any Group
Company intends to initiate. The foregoing includes, without limitation, actions, suits,
proceedings or investigations pending or threatened in writing (or any basis therefor known
to the Warrantors’) involving the prior employment of any of the Group Company’s employees,
their services provided in connection with Group Company’s business, or any information or
techniques allegedly proprietary to any of their former employers, or their obligations
under any agreements with prior employers.

	16.	 	Intellectual Property.

	16.1	 	Each Group Company owns or possesses sufficient legal tights to (i) all trademarks, service
marks, trade names, copyrights, trade secrets, licenses, information and proprietary rights
and processes and (ii) to the Warrantors’ knowledge, all patents and patent rights, as are
necessary to the conduct of such Group Company’s business as now conducted and as presently
proposed to be conducted, without any known conflict with, or infringement of, the rights of
others. Section 8.1 of the Disclosure Schedule contains a complete and
accurate list of all Intellectual Property owned, licensed to or used by each Group Company,
whether registered or not, and a complete and accurate list of all licenses granted by such
Group Company to any third party with respect to any Intellectual Property. No product or
service marketed or sold (or proposed to be marketed or sold) by any Group Company violates or
will violate any license or infringe any intellectual property rights of any other party.

	16.2	 	No Group Company has received any communications alleging that any Group Company has
violated or, by conducting its business, would violate any of the patents, trademarks, service
marks, trade names, copyrights, trade secrets or other proprietary rights or processes of any
other person or entity. Except as set forth in Section 8.2 of the Disclosure
Schedule, each Group Company has obtained and possesses valid licenses to use all of the
software programs present on the computers and other
software-enabled electronic devices that it owns or leases or that it has otherwise provided
to its employees for their use in connection with such Group Company’s business. To the
Warrantors’ knowledge, it will not be necessary to use any inventions of any of its
employees (or persons it currently intends to hire) made prior to their employment by a
Group Company. Each Employee has assigned to the Group Companies all intellectual property
rights he or she owns that are related to the Group Companies’ business as now conducted.

 

31

 

	16.3	 	Other than with respect to commercially available software products under standard end-user
object code license agreements, there are no outstanding options, licenses, agreements,
claims, encumbrances or shared ownership interests of any kind relating to the foregoing, nor
is any Group Company bound by or a party to any options, licenses or agreements of any kind
with respect to the patents, trademarks, service marks, trade names, copyrights, trade
secrets, licenses, information, proprietary rights and processes of any other person or
entity.

	16.4	 	No proceedings or claims in which any Group Company alleges that any person is infringing
upon, or otherwise violating, its Intellectual Property rights are pending, and none has been
served, instituted or asserted by any Group Company.

	16.5	 	None of the employees of any Group Company or the Founders is obligated under any Contract
(including a Contract of employment), or subject to any judgment, decree or order of any court
or administrative agency, that would interfere with the use of his or her best efforts to
promote the interests of the Company Group, or that would conflict with the business of any
Group Company as presently conducted. To the knowledge of the Warrantors, it will not be
necessary to utilize in the course of the any Group Company’s business operations any
inventions of any of the employees of any Group Company made prior to their employment by the
such Group Company, except for inventions that have been validly and properly assigned or
licensed to such Group Company as of the date hereof.

	16.6	 	Each Group Company has taken all security measures that in the judgment of such Person are
commercially prudent in order to protect the secrecy, confidentiality, and value of its
material Intellectual Property.

	16.7	 	No Public Software (as defined below) forms part of the any product or service provided by
any the Group Company (“GC Product or Service”) and no Public Software was or is used in
connection with the development of any GC Product or Service or is incorporated into, in whole
or in part, or has been distributed with, in whole or in part, any GC Product or Service. As
used in this Section 8.7, “Public Software” means any software that contains, or is
derived in any manner (in whole or in part) from, any software that is distributed as free
software (as defined by the Free Software Foundation), open source software (e.g., Linux or
software distributed under any license approved by the Open Source Initiative as set forth www
opensource.org) or similar licensing or distribution models which require the distribution or
making available of source code as well as object code of the software to licensees without
charge (except for the cost of the medium) and (b) the right of the licensee to modify the
software and redistribute both the modified and unmodified versions of the software, including
software licensed or distributed under any of the following licenses: (i) GNU’s General Public
License (GPL) or Lesser/Library GPL (LGPL); (ii)
the Artistic License (e g , PERL); (iii) the Mozilla Public License; (iv) the Netscape
Public License; (v) the BSD License; or (vi) the Apache License.

 

32

 

	17.	 	Compliance with Other Instruments.

The Group Companies and the Key Holders are not in violation or default (i) of any
provisions of its Memorandum of Association (if any), Articles of Association or any other
applicable constitutional document, (ii) of any instrument, judgment, order, writ or decree,
(iii) under any note, indenture or mortgage, or (iv) under any lease, agreement, contract or
purchase order to which it is a party or by which it is bound that is required to be listed
on the Disclosure Schedule, or, of any provision of statute, rule or regulation applicable
to such Group Company, the violation of which would either individually or in the aggregate,
reasonably be expected to have a Material Adverse Effect. The execution, delivery and
performance of the Transaction Documents and the consummation of the transactions
contemplated by the Transaction Documents will not result in any such violation or be in
conflict with or constitute, with or without the passage of time and giving of notice,
either (i) a default under any such provision, instrument, judgment, order, writ, decree,
contract or agreement or (ii) an event which results in the creation of any lien, charge or
encumbrance upon any assets of any Group Company or the suspension, revocation, forfeiture,
or nonrenewal of any material permit or license applicable to any Group Company, which would
either individually or in the aggregate, reasonably be expected to have a Material Adverse
Effect.

	18.	 	Agreements; Actions.

	18.1	 	Save for the agreements set out in Section 10.1 of the Disclosure Schedule
(the “Material Agreements”) and the Transaction Documents, there are no other agreements,
understandings, instruments, contracts or proposed transactions entered into during the period
from January 1, 2009, and September. 30, 2009, to which any Group Company is a party or by
which it is bound that involve (i) obligations (contingent or otherwise) of or payments to,
any Group Company in excess of US$10,000 per annum or in excess of US$25,000 in the aggregate,
(ii) the transfer or license of any patent, copyright, trade secret or other proprietary right
to or from any Group Company, other than from or to another Group Company or from a Key Holder
to a Group Company, (iii) the grant of rights to manufacture, produce, assemble, license,
market, or sell its products to any other person or affect any Group Company’s exclusive tight
to develop, manufacture, assemble, distribute, market or sell its products, or (iv)
indemnification by any Group Company with respect to infringements of proprietary rights. All
the Material Agreements are valid, binding and enforceable obligations of the patties thereto
and the terms thereof have been complied with by the relevant Group Company, and to the
knowledge of the Warrantors’, by all the other parties thereto. There are to the knowledge of
the Warrantors’, no circumstances likely to give rise to any material breach of such terms, no
grounds for rescission, avoidance or repudiation of any of the Material Agreements which would
have a Material Adverse Effect and no notice of termination or of intention to terminate has
been received in respect of any Material Agreement.

 

33

 

	18.2	 	Save as set out in Section 10.2 of the Disclosure Schedule, the Company has
not declared or paid any dividends, or authorized or made any distribution upon or with
respect to any class of its share capital, and no Group Company has (i) incurred any
indebtedness for money borrowed or incurred any other liabilities individually in excess of
US$10,000 or in excess of US$25,000 in the aggregate, (ii) made any loans or advances to any
person, other than ordinary advances for travel expenses and trade receivables in the
ordinary course of business, or (iii) sold, exchanged or otherwise disposed of any of its
assets or rights, other than the sale of its inventory in the ordinary course of business or
otherwise envisaged in this Agreement. For the purposes of Sections 10.1 and
10.2 of this Schedule 5 all indebtedness, liabilities, agreements,
understandings, instruments, contracts and proposed transactions involving the same person
or entity shall be aggregated for the purpose of meeting the individual minimum dollar
amounts of such subsection.

	18.3	 	No Group Company is a guarantor or indemnitor of any indebtedness of any other person, firm
or corporation that is not a Group Company.

	18.4	 	Save as set out in Section 10.4 of the Disclosure Schedule or in connection
with this Agreement and the other Transaction Documents, no Group Company has engaged in the
past three (3) months in any discussion with any representative of any corporation,
partnership, trust, joint venture, limited liability company, association or other entity, or
any individual, regarding (i) a sale of all or substantially all of such Group Company’s
assets, or (ii) any merger, consolidation or other business combination transaction of such
Group Company with or into another corporation, entity or person.

	19.	 	Conflict of Interest.

	19.1	 	Other than (i) standard employee benefits generally made available to all employees, (ii)
standard director and officer indemnification agreements approved by the Board of Directors,
and (iii) the purchase of the Company’s share capital in accordance with applicable law, in
each instance, disclosed in Section 11.1 of the Disclosure Schedule, there are
no agreements, understandings or proposed transactions between any Group Company and any of
its officers, directors, consultants or Employees, or any Affiliate thereof, respectively.

	19.2	 	No Group Company is indebted, directly or indirectly, to any of its directors, officers or
employees or to their respective spouses or children or to any Affiliate of any of the
foregoing, other than in connection with expenses or advances of expenses incurred in the
ordinary course of business or employee relocation expenses. None of the Group Companies’
directors, officers or employees, or any members of their immediate families, or any Affiliate
of the foregoing (i) are, directly or indirectly, indebted to any Group Company or, (ii) to
the Warrantors’ knowledge, have any direct or indirect ownership interest in any firm or
corporation with which the Company is affiliated or with which any Group Company has a
business relationship, or any firm or corporation which competes with any Group Company except
that directors, officers or employees or shareholders of the Company may own shares in (but
not exceeding one percent (1%) of the outstanding shares of) publicly traded companies that
may compete with any Group Company. To the Warrantors’ knowledge, none of the Group Companies’
employees or directors or any members of their immediate families or any Affiliate of any of
the foregoing are, directly or indirectly, interested in any contract with any Group Company.
None of the directors or officers, or any members of their immediate families, has any
material commercial, industrial, banking, consulting, legal, accounting, charitable or
familial relationship with any of
the Group Companies’ five (5) largest business relationship partners, service providers,
joint venture partners, licensees and competitors.

 

34

 

	19.3	 	Except for the Group Companies and the entities set forth in Section 11.3 of
Disclosure Schedule, there are no corporations, partnerships, trusts, joint ventures,
limited liability companies or other business entities in which any Key Holder owns or
controls, directly or indirectly, 10% or more of the outstanding voting interests.

	20.	 	Rights of Registration and Voting Rights.

Except as provided in the Shareholders’ Agreement, no Group Company is under any obligation
to register under the Securities Act or any other applicable securities laws, any of its
currently outstanding securities or any securities issuable upon exercise or conversion of
its currently outstanding securities. To the Warrantors’ knowledge, except as contemplated
in the Shareholders’ Agreement, no shareholder of any Group Company has entered into any
agreements with respect to the voting of shares in the capital of the Company. Except as
contemplated by or disclosed in the Transaction Documents, no Founder is a party to or has
any knowledge of any agreements, written or oral, relating to the acquisition, disposition,
registration under the Securities Act, or voting of the shares or securities of any Group
Company.

	21.	 	Absence of Liens.

Except as provided in Section 13 of the Disclosure Schedule, the property
and assets owned by the Group Companies are flee and clear of all mortgages, deeds of trust,
liens, loans and encumbrances, except for statutory liens for the payment of current taxes
that are not yet delinquent and encumbrances and liens that arise in the ordinary course of
business and do not materially impair the Group Companies’ ownership or use of such property
or assets With respect to the property and assets it leases, each Group Company is in
compliance with such leases and, to the Warrantors’ knowledge, holds a valid leasehold
interest free of any liens, claims or encumbrances other than those of the lessors of such
property or assets.

	22.	 	Financial Statements.

The Domestic Company has delivered to the Purchaser its audited Financial Statements for the
fiscal year ended December 31, 2007, and December 31, 2008, and for the 9 month period ended
September 30, 2009. The Financial Statements fairly present in all material respects the
financial condition and operating results of the Domestic Company as of the dates, and for
the periods, indicated therein. Except as set forth in the Financial Statements, the
Domestic Company has no material liabilities or obligations, contingent or otherwise, as of
December 31, 2008, other than (i) liabilities incurred in the ordinary course of business
subsequent to December 31, 2008; (ii) obligations under contracts and commitments incurred
in the ordinary course of business and (iii) liabilities and obligations of a type or nature
not required under the PRC GAAP to be reflected in the Financial Statements, which, in all
such cases, individually and in the aggregate would not have a Material Adverse Effect.
However, the Domestic Company commits to maintain a standard system of accounting
established and administered in accordance with U.S. GAAP.

 

35

 

	23.	 	Changes.

Since December 31, 2008, except as set forth in Section 15 of the Disclosure
Schedule or as contemplated by this Agreement or the Transaction Documents, there has
not been:

	 	(a)	 	any change in the assets, liabilities, financial condition or operating results
of any Group Company from that reflected in the Financial Statements, except changes in
the ordinary course of business that have not caused, in the aggregate, a Material
Adverse Effect on a Group Company;

	 	(b)	 	any damage, destruction or loss, whether or not covered by insurance, that
would have a Material Adverse Effect on a Group Company;

	 	(c)	 	any waiver or compromise by any Group Company of a valuable right or of a
material debt owed to it;

	 	(d)	 	any satisfaction or discharge of any lien, claim, or encumbrance or payment of
any obligation by any Group Company, except in the ordinary course of business and the
satisfaction or discharge of which would not have a Material Adverse Effect;

	 	(e)	 	any material change to a material contract or agreement by which any Group
Company or any of its assets is bound or subject;

	 	(f)	 	any material change in any compensation arrangement or agreement with any
employee, officer, director or shareholder;

	 	(g)	 	any resignation or termination of employment of any officer or Employee of any
Group Company;

	 	(h)	 	any mortgage, pledge, transfer of a security interest in, or lien, created by
any Group Company, with respect to any of its material properties or assets, except
liens for taxes not yet due or payable and liens that arise in the ordinary course of
business and do not materially impair such Company’s ownership or use of such property
or assets;

	 	(i)	 	any dividend, loans or guarantees made by any Group Company to or for the
benefit of its employees, officers or directors, or any members of their immediate
families, other than travel advances and other advances made in the ordinary course of
its business;

	 	(j)	 	any declaration, setting aside or payment or other distribution in respect of
any Group Company’s share capital, or any direct or indirect redemption, purchase, or
other acquisition of any of such shares by any Group Company;

	 	(k)	 	any sale, assignment or transfer of any Group Company Intellectual Property
that could reasonably be expected to result in a Material Adverse Effect;

	 	(l)	 	receipt of notice that there has been a loss of, or material order cancellation
by, any major customer of any Group Company;

 

36

 

	 	(m)	 	to the Warrantors’ knowledge, any other event or condition of any character,
other than events affecting the economy or the Company’s industry generally, that could
reasonably be expected to result in a Material Adverse Effect; or

	 	(n)	 	any arrangement or commitment by the Company to do any of the things described
in this Section 15.

	24.	 	Employee Matters. 

	24.1	 	Section 16.1 of the Disclosure Schedule sets forth a detailed description of
all compensation, including salary, bonus, severance obligations and deferred compensation
payable for each officer, employee, consultant and independent contractor of any Group Company
who is anticipated to receive compensation in excess of US$50,000 for the fiscal year ending
December 31, 2009.

	24.2	 	To the Warrantors’ knowledge, no employee of any Group Company is obligated under any
contract (including licenses, covenants or commitments of any nature) or other agreement, or
subject to any judgment, decree or order of any court or administrative agency, that would
materially interfere with such employee’s ability to promote the interest of the Group
Companies or that would conflict with the Group Companies’ business. Neither the execution or
delivery of the Transaction Documents, nor the carrying on of the Company’s business by the
employees of the Group Companies, nor the conduct of the business as now conducted and as
presently proposed to be conducted, will, to the Warrantors’ knowledge, conflict with or
result in a breach of the terms, conditions, or provisions of, or constitute a default under,
any contract, covenant or instrument under which any such employee is now obligated.

	24.3	 	No Group Company is delinquent in payments to any of its employees, consultants, or
independent contractors for any wages, salaries, commissions, bonuses, or other direct
compensation for any service performed for it to the date hereof or amounts required to be
reimbursed to such employees, consultants, or independent contractors. Each Group Company has
complied in all material respects with all applicable laws related to employment, including
those related to wages, hours, worker classification, and collective bargaining, and the
payment and withholding of taxes and other sums as required by law except where noncompliance
with any applicable law would not result in a Material Adverse Effect. Each Group Company has
withheld and paid to the appropriate governmental entity or is holding for payment not yet due
to such governmental entity all amounts required to be withheld from employees of such Group
Company and is not liable for any arrears of wages, taxes, penalties, or other sums for
failure to comply with any of the foregoing.

	24.4	 	To the Warrantors’ knowledge, no employee intends to terminate employment with any Group
Company or is otherwise likely to become unavailable to continue as an employee, nor does any
Group Company have a present intention to terminate the employment of any of the foregoing The
employment of each employee of the Company is terminable at the will of the Company Except as
set forth in Section 16.4 of the Disclosure Schedule or as required by law,
upon termination of the employment of any such employees, no severance or other payments will
become due. Except as set forth in Section 16.4 of the Disclosure Schedule,
the Company has no policy, practice, plan, or program of paying severance pay or any form of
severance compensation in connection with the termination of employment services.

 

37

 

	24.5	 	The Company has not made any representations regarding equity incentives to any officer,
employees, director or consultant that are inconsistent with the share amounts and terms set
forth in the Company’s board minutes.

	24.6	 	Each former employee whose employment was terminated by the Company has entered into an
agreement with the Company providing for the full release of any claims against the Company or
any related party arising out of such employment.

	24.7	 	Section 16.7 of the Disclosure Schedule sets forth each and every employee benefit
plan maintained, established or sponsored by any Group Company, or in which any Group Company
participates in or contributes to in any jurisdiction, including without limitation, the PRC
(the “Employee Benefit Plans”). Save as set out in Section 16.7 of the Disclosure
Schedule, there is no other pension, retirement, profit-sharing, deferred compensation,
bonus, incentive or other employee benefit program, arrangement, agreement or understanding to
which any Group Company contributes, is bound, or under which any employees or former
employees (or their beneficiaries) are eligible to participate or derive a benefit. Each
Group Company has made all required contributions under all the Employee Benefit Plans
including without limitation all contributions required to be made under the PRC social
insurance and housing schemes, and has complied in all material respects with all applicable
laws of any jurisdiction, in relation to the Employee Benefit Plans.

	24.8	 	No Group Company is bound by or subject to (and none of its assets or properties is bound by
or subject to) any written or oral, express or implied, contract, commitment or arrangement
with any labor union, and no labor union has requested or, to the Warrantors’ knowledge, has
sought to represent any of the employees, representatives or agents of any Group Company.
There is no strike or other labor dispute involving any Group Company pending, or to the
Warrantors’ knowledge, threatened, which could have a Material Adverse Effect, nor is the
Company aware of any labor organization activity involving its employees.

	24.9	 	To the Warrantors’ knowledge, none of the employees or directors of any Group Company during
the previous three (3) years, has been (a) subject to voluntary or involuntary petition under
any applicable bankruptcy laws or any state insolvency laws or the appointment of manager, a
receiver or similar officer by a court for his business or property; (b) convicted in a
criminal proceeding or named as a subject of a pending criminal proceeding (excluding traffic
violations and other minor offenses); (c) subject to any order, judgment, or decree (not
subsequently reversed, suspended, or vacated) of any court of competent jurisdiction
permanently or temporarily enjoining him from engaging, or otherwise imposing limits or
conditions on his engagement in any securities, investment advisory, banking, insurance, or
other type of business or acting as an officer or director of a public company; or (d) found
by a court of competent jurisdiction in a civil action or by any relevant regulatory
organization to have violated any applicable securities, commodities, or unfair trade
practices law, which such judgment or finding has not been subsequently reversed, suspended,
or vacated.

 

38

 

	25.	 	Tax Matters.

	25.1	 	The provisions for taxes as shown on the balance sheet included in the Financial Statements
are sufficient in all material respects for the payment of all accrued and
unpaid applicable taxes of the Group Companies as of’ the date of each such balance sheet,
whether or not assessed or disputed as of the date of each such balance sheet. Except as set
forth in Section 17 of the Disclosure Schedule, there have been no
extraordinary examinations or audits of any tax returns or reports by any applicable
Governmental Authority. Except as set forth in Section 17 of the Disclosure
Schedule, each Group Company has filed or caused to be filed on a timely basis all tax
returns that are or were required to be filed (to the extent applicable), all such returns
are correct and complete, and each Group Company has paid all taxes that have become due, or
have reflected such taxes in accordance with the PRC GAAP as a reserve for taxes on the
Financial Statements. There are in effect no waivers of applicable statutes of limitations
with respect to taxes for any year.

	25.2	 	No member of the Company Group is, nor expects to become, a passive foreign investment
company (“PFIC”) as described in Section 1297 of the United States Internal Revenue Code of
1986, as amended (the “Code”).

	25.3	 	No shareholder of any member of a Group Company, solely by virtue of its status as
shareholder of such Group Company, have personal liability under local law for the debts and
claims of such Group Company. There has been no communication from any tax authority relating
to or affecting the tax classification of any member of the Company Group.

	26.	 	Insurance.

Section 18 of the Disclosure Schedule provides a complete list of each Group
Company’s insurance policies currently in effect. No Group Company has done or omitted to do
or suffered anything to be done or not to be done other than any acts in the ordinary course
of business which has or would render any policies of insurance taken out by it or by any
other person in relation to any of such Group Company’s assets void or voidable or which
would result in an increase in the rate of premiums on the said policies and there are no
claims outstanding and no circumstances which would give rise to any claim under any of such
policies of insurance.

	27.	 	Confidential Information and Invention Assignment Agreements.

Each current and former employee, consultant and officer of the Company or any Group Company
has executed an agreement with the Company or that Group Company regarding confidentiality
and proprietary information substantially in the form or forms delivered to the counsel for
the Purchaser (the “Confidential Information Agreements”). No current or former employee has
excluded works or inventions from his or her assignment of inventions pursuant to such
employee’s Confidential Information Agreement. The Company and any Group Company are not
aware that any of their Key Employees is in violation thereof.

	28.	 	Governmental and Other Permits.

Each Group Company has all franchises, governmental permits, licenses and any similar
authority necessary for the conduct of its business. No Group Company is in default in any
material respect under any of such franchises, Governmental permits, licenses or other
similar authority.

 

39

 

	29.	 	Corporate Documents.

The memorandum of association, articles of association, and all other. constitutional
documents (or analogous constitutional documents) of each Group Company are in the form
provided to the Purchaser. The copy of the minute books of the Company provided to the
Purchaser contains minutes of all meetings of directors and shareholders and all actions by
written consent without a meeting by the directors and shareholders since the date of
incorporation and accurately reflects in all material respects all actions by the directors
(and any committee of directors) and shareholders with respect to all transactions referred
to in such minutes.

	30.	 	Liabilities.

Except as set forth in Section 22 of the Disclosure Schedule or arising
under the instruments set forth in Section 10 of the Disclosure Schedule,
the Company has no liabilities of any nature, whether accrued, absolute, contingent or
otherwise, and whether due or to become due, except for (i) liabilities set forth in the
Financial Statements, (ii) trade or business liabilities incurred in the ordinary course of
business, and (iii) other liabilities that do not exceed US$5,000 in the aggregate.

	31.	 	Compliance with Laws.

	31.1	 	Except as set forth in Section 23.1 of the Disclosure Schedule, each Group
Company is in material compliance with all applicable Laws applicable to it or to the conduct
or operation of its business or the ownership or use of any of its assets or properties.

	31.2	 	Except as set forth in Section 23.2 of the Disclosure Schedule, no event has
occurred and no circumstance exists that to the Warrantors’ knowledge (1) may constitute or
result in a violation by any Group Company, or a failure on the part of any Group Company to
comply with any Law, or (ii) may give rise to any obligation on the part of any Group Company
to undertake, or to bear all or any portion of the cost of any remedial action of any nature,
except for such violations or failures by a Group Company that, individually or in the
aggregate, would not result in any Material Adverse Effect.

	31.3	 	No Group Company has received any written notice from any Governmental Authority regarding
(i) any actual, alleged or likely material violation of; or material failure to comply with,
any Law, or (ii) any actual, alleged or likely material obligation on the part of any Group
Company to undertake, or to bear all or any portion of the cost of any remedial action of any
nature.

	31.4	 	No Group Company, nor any director, agent, employee or any other person acting for or on
behalf of any Group Company, has directly or indirectly (i) made any contribution, gift,
bribe, payoff, influence payment, kickback, or any other fraudulent payment in any form,
whether in money, property, or services to any public official or otherwise (A) to obtain
favorable treatment in securing business for a Group Company, (B) to pay for favorable
treatment for business secured, or (C) to obtain special concessions or for special
concessions already obtained, for or in respect of any Group Company, in each case which would
have been in violation of any applicable Law or (ii) established or maintained any fund or
assets in which any
Group Company shall have proprietary rights that have not been recorded in the books and
records of a Group Company.

 

40

 

	31.5	 	During the previous five (5) years, no Founder has been (i) subject to voluntary or
involuntary petition under any applicable bankruptcy laws or any applicable insolvency law or
the appointment of a manager, receiver, or similar officer by a court for his business or
property; (ii) convicted in a criminal proceeding or named as a subject of a pending criminal
proceeding (excluding traffic violations and other minor offences); (iii) subject to any
order, judgment, or decree (not subsequently reversed, suspended, or vacated) of any court of
competent jurisdiction permanently or temporarily enjoining him from engaging, or otherwise
imposing limits or conditions on his engagement in any securities, investment advisory,
banking, insurance, or other type of business or acting as an officer or director of a public
company; or (iv) found by a court of competent jurisdiction in a civil action or by any
regulatory organization to have violated any applicable securities, commodities or unfair
trade practices law whatsoever, which such judgment or finding has not been subsequently
reversed, suspended, or vacated,

	32.	 	Disclosure; Projections.

The Company has made available to the Purchaser all the information reasonably available to
the Company that the Purchaser has requested for deciding whether to acquire the Shares,
including certain of the Company’s financial projections (the “Projections”), each of which
were prepared in good faith. To the Warrantors’ knowledge, no representation or warranty of
any Warrantor contained in this Agreement, as qualified by the Disclosure Schedule, and no
certificate furnished or to be furnished to the Purchaser at the Closing contains any untrue
statement of a material fact or omits to state a material fact necessary in order to make
the statements contained herein or therein not misleading in light of the circumstances
under which they were made.

	33.	 	Use of Proceeds Plan and Budget.

The Company has delivered to the Purchaser on or before the Closing an interim use of
proceeds plan and operation budget (the “Business Plan”) in accordance with Section
2.5. Such Business Plan was prepared in good faith based upon assumptions and
projections which the Founders believe are reasonable and not materially misleading.

	34.	 	Entire Business.

There are no material facilities, services, assets or properties shared with any entity
other than the Group Company which are used in connection with the business of the Domestic
Company.

 

41

 

SCHEDULE 6

DISCLOSURE SCHEDULE

Section 1 Introduction

	1.1	 	This Disclosure Schedule forms an inseparable part of the Share Purchase Agreement (the
“Agreement”) relating to the subscription of Class B Ordinary Shares of CITYLEAD Limited, a
company limited by shares duly incorporated and validly existing under the Laws of the British
Virgin Islands (the “Company”). Unless the context otherwise specifies, all capitalized terms
used herein shall have the meanings given to such terms in the Agreement.

	1.2	 	The purpose of this Disclosure Schedule is to disclose matters which may be relevant to
and/or to qualify the representations and warranties made by certain parties contained in
Schedule 5 of the Agreement (collectively, the “Warranties” and each, a “Warranty”).

	1.3	 	In the event that any inconsistency is revealed between any provision of the Agreement and
any part of this Disclosure Schedule, this Disclosure Schedule shall prevail and shall be
deemed to be the relevant disclosure.

	1.4	 	The matters disclosed in this Disclosure Schedule be deemed to be representations and
warranties under Schedule 5 of the Agreement.

	1.5	 	Inclusion of any item in this Disclosure Schedule (i) does not represent a determination that
such item is material or establish a standard of materiality; (ii) does not represent a
determination that such item did not arise in the ordinary course of business; (iii) except as
specifically set forth herein, does not represent a determination that the transactions
contemplated in the Agreement require the consent of third parties.

	1.6	 	The section numbers below correspond to the section numbers of the Warranties in the Schedule
5 of this Agreement; provided however, that any information disclosed herein under any section
number shall be deemed-disclosed and incorporated into any other sections of this Disclosure
Schedule to which there is an express cross-reference.

 

42

 

Section 2 Disclosure Schedule

	 	 	 	 	 	 	 
	Section Number	 	Specific Disclosure
	Section 3	 	 	nil
	Section 8.1	 	 	• Trademark in the process of application:
	 	 	 	1.
“QiGi” (Application date: 1-10-2008; Application number:
6501874; Category: 09)

	 	 	 	2.
“QIGI (piture)” (Application date: 3-11-2009; Application
number: 7247382; Category: 09)

	 	 	 	3.
“i-mate” (Application date: 9-27-2007; Application number:
6299651; Category: 09)

	 	 	 	• Domain names:
	 	 	 	1.
qigi.cc;

	 	 	 	2.
bode cc

	Section 8.2	 	 	nil
	Section 10.1

	 	 	1.	 	 	Sales contract dated January 5, 2009, between the Domestic Company (hereinafter referred to as “QiGI” in this section of the Disclosure Schedule) and Henan Jielong Tongxing Technology Co., Ltd.;
	 

	 	 	2.	 	 	Sales contract dated January 5, 2009, between QiGi and Taiwan Tianfu Weiye Communications Equipment Co., Ltd.;
	 

	 	 	3.	 	 	Sales contract dated .January 5, 2009, between QiGi and Tianjin Everyday Commerce Co., Ltd.;
	 

	 	 	4.	 	 	Sales contract dated January 7, 2009, between QiGi and Changde Yongxiang Trade Co., Ltd.;
	 

	 	 	5.	 	 	Sales contract dated .January 8, 2009, between QiGi and Foshan Nanhaitian Electronics Co., Ltd.;
	 

	 	 	6.	 	 	Sales contract dated January 9, 2009, between QiGi and Chongqing Century Communications Technology Development Co., Ltd.;
	 

	 	 	7.	 	 	Sales contract dated January 9, 2009, between QiGi and Chongqing Tiandi Sheyuan Shangmao Co., Ltd.;
	 

	 	 	8.	 	 	Sales contract dated
..January 12, 2009, between QiGi and Chengdu Hua- Shangmao Co., Ltd.;
	 

	 	 	9.	 	 	Sales contract dated January 12, 2009, between QiGi and Guangzhou Xiangjin Digital Technology Co., Ltd.;
	 

	 	 	10.	 	 	Sales contract dated January 13, 2009, between QiGi and Dongguan Lianyu Electronics Co., Ltd.;
	 

	 	 	11.	 	 	Sales contract dated .January 15, 2009, between QiGi and Guangzhou Chuangwei Electronics Technology Co., Ltd.;
	 

	 	 	12.	 	 	Sales contract dated January 15, 2009, between QiGi and Hanzhou Quanyong Maoyi Co., Ltd.;
	 

	 	 	13.	 	 	Sales contract dated January 15, 2009, between QiGi and Kunming Wuyao Tongxun Shebei Co., Ltd.;
	 

	 	 	14.	 	 	Sales contract dated January 15, 2009, between QiGi and Quanzhou Huachen Telecommunications Maoyi Co., Ltd.;
	 

	 	 	15.	 	 	Sales contract dated January 15, 2009, between QiGi and Shanghai Kun- Shiye Co., Ltd.;
	 

	 	 	16.	 	 	Sales contract dated January 15, 2009, between QiGi and Chengdu Sanling Shengan Information Systems Co., Ltd.;

 

43

 

	 	 	 	 	 	 	 
	Section Number	 	Specific Disclosure
	 

	 	 	17.	 	 	Sales contract dated January 16, 2009, between QiGi and Kunming Jingzheng Technology Electronics Co., Ltd.;
	 

	 	 	18.	 	 	Sales contract dated .January 16, 2009, between QiGi and Shanghai Boxuan Tongxun Technology Co., Ltd.;
	 

	 	 	19.	 	 	Sales contract dated January 16, 2009, between QiGi and Xiamen Huidesheng Maoyi Co., Ltd.;
	 

	 	 	20.	 	 	Sales contract dated January 19, 2009, between QiGi and Shenzhen Linda Microelectronics Shiye Co., Ltd.;
	 

	 	 	21.	 	 	Sales contract dated January 20, 2009, between QiGi and Wuhan Jiayuan Digital Technology Co., Ltd.;
	 

	 	 	22.	 	 	Sales contract dated January 20, 2009, between QiGi and Beijing Hanming Xingtong Technology Co., Ltd.;
	 

	 	 	23.	 	 	Sales contract dated January 21, 2009, between QiGi and Guiyang Naming District Huamei Tongxun Equipment Co., Ltd.;
	 

	 	 	24.	 	 	Sales contract dated January 21, 2009, between QiGi and JInan Depu Tongxing Equipment Co., Ltd.;
	 

	 	 	25.	 	 	Sales contract dated .January 21, 2009, between QiGi and Shanghai Shoushang Intelligence Communication Equipment Co., Ltd.;
	 

	 	 	26.	 	 	Sales contract dated January 21, 2009, between QiGi and Shanghai Situman Electronic Technology Co., Ltd.;
	 

	 	 	27.	 	 	Sales contract dated January 23, 2009, between QiGi and Shanxi Fanggeng Technology Development Co., Ltd.;
	 

	 	 	28.	 	 	Sales contract dated February 1, 2009, between QiGi and Hanzhou Renxing Digital Technology Co., Ltd.;
	 

	 	 	29.	 	 	Machinery purchase contract dated February 1, 2009, between QiGi and Guangdong Hexing Technology Co., Ltd.;
	 

	 	 	30.	 	 	Sales contract dated February 3, 2009, between QiGi and Shenzen Quanqi Digital Co., Ltd.;
	 

	 	 	31.	 	 	Sales contract dated February 3, 2009, between QiGi and Shenzhen Jingyu Shikong Tongxun Equipment Co., Ltd.;
	 

	 	 	32.	 	 	Sales contract dated February 3, 2009, between QiGi and Suzhou Jingpai Mobile Phone Internet Co., Ltd.;
	 

	 	 	33.	 	 	Sales contract dated February 3, 2009, between QiGi and Zhuhai Sanken Electronics Technology Co., Ltd.;
	 

	 	 	34.	 	 	Sales contract dated February 3, 2009, between QiGi and Chengdu Hanbo Shangmao Co., Ltd.;
	 

	 	 	35.	 	 	Sales contract dated February 3, 2009, between QiGi and Chongqing Bada Electronics Construction Co., Ltd.;
	 

	 	 	36.	 	 	Sales contract dated February 3, 2009, between QiGi and Jinan Depu Tongxun Equipment Co., Ltd.;
	 

	 	 	37.	 	 	Sales contract dated February 3, 2009, between QiGi and Yunnan Gelin Digital Technology Co., Ltd.;
	 

	 	 	38.	 	 	Order form dated February 3, 2009, between QiGi and Dexing Intelligence Mobile Phone Technology (HK) Co., Ltd.;
	 

	 	 	39.	 	 	Order form dated February 4, 2009, between QiGi and Dexing Intelligence Mobile Phone Technology (HK) Co., Ltd.;
	 

	 	 	40.	 	 	Sales contract dated February 4, 2009, between QiGi and Changsha Jianfeng Chaoliu Tongxun Equipment Co., Ltd.;

 

44

 

	 	 	 	 	 	 	 
	Section Number	 	Specific Disclosure
	 

	 	 	41.	 	 	Sales contract dated February 4, 2009, between QiGi and Shenzhen Linda Mictroelectronics Shiye Co., Ltd.;
	 

	 	 	42.	 	 	Sales contract dated February 5, 2009, between QiGi and Shanghai E-te Digital Co., Ltd.;
	 

	 	 	43.	 	 	Sales contract dated February 5, 2009, between QiGi and Beijing Sanren Weiye Shangmao Co., Ltd.;
	 

	 	 	44.	 	 	Machinery purchase contract dated February 5, 2009, between QiGi and Guangzhou Gaoke Tongxing Technology Co., Ltd.;
	 

	 	 	45.	 	 	Sales contract dated February 7, 2009, between QiGi and Taiyuan Tianfu Weiye Tongxun Equipment Co., Ltd.;
	 

	 	 	46.	 	 	Sales contract dated February 7, 2009, between QiGi and Tianjin Meiritong Shangmao Co., Ltd.;
	 

	 	 	47.	 	 	Sales contract dated February 7, 2009, between QiGi and Hefei Jiada Tongxun Technology Co., Ltd.;
	 

	 	 	48.	 	 	Sales contract dated February 7, 2009, between QiGi and Shijiazhuang Tianwen Communication Tongxun Equipment Co., Ltd.;
	 

	 	 	49.	 	 	Machinery purchase contract dated February 7, 2009, between QiGi and Guangdong Hexin Technology Co., Ltd.;
	 

	 	 	50.	 	 	Sales contract dated February 8, 2009, between QiGi and Wuhan Zhongyu Electronics Co., Ltd.;
	 

	 	 	51.	 	 	Sales contract dated February 10, 2009, between QiGi and Beijing Yihengteng Technology Development Co., Ltd.;
	 

	 	 	52.	 	 	Sales contract dated February 13, 2009, between QiGi and Nanjing Lanbiao Digital Technology Co., Ltd.
	 

	 	 	53.	 	 	Sales contract dated February 13, 2009, between QiGi and Henan Jielong Tongxun Technology Co., Ltd.;
	 

	 	 	54.	 	 	Sales contract dated February 13, 2009, between QiGi and Beijing Mobile Xingzhi Tongxun Technology Co., Ltd.;
	 

	 	 	55.	 	 	Sales contract dated February 1.3, 2009, between QiGi and Taiyuan Huilin Tongxun Information Technology Co., Ltd.;
	 

	 	 	56.	 	 	Sales contract dated February 14, 2009, between QiGi and Qingdao Jingwei Tiandi Electronics Co., Ltd.;
	 

	 	 	57.	 	 	Sales contract dated February 14, 2009, between QiGi and Huizhou Yicheng Technology Co., Ltd.;
	 

	 	 	58.	 	 	Sales contract dated February 14, 2009, between QiGi and Quhan Jiayuan Digital Technology Co., Ltd.;
	 

	 	 	59.	 	 	Sales contract dated February 14, 2009, between QiGi and Nanjing Runchang Electronics Co., Ltd.;
	 

	 	 	60.	 	 	Sales contract dated February 18, 2009, between QiGi and Guangzhou Yuanchang Moayi Co., Ltd.;
	 

	 	 	61.	 	 	Order form dated February 24, 2009, between QiGi and Dexing Intelligence Mobile Phone Technology (HK) Co., Ltd.;
	 

	 	 	62.	 	 	Order form dated February 24, 2009, between QiGi and Dexing Wireless Tongxun Technology (Beijing) Co., Ltd.;
	 

	 	 	63.	 	 	Order form dated February 26, 2009, between QiGi and Dexing Intelligence Mobile Phone Technology (Beijing) Co., Ltd.;
	 

	 	 	64.	 	 	Sales contract dated March 2, 2009, between QiGi and Nanning Hengrongchang Shangmao Co., Ltd.;
	 

	 	 	65.	 	 	Sales contract dated March 26, 2009, between QiGi and Wuhan Bohong Information Technology Co., Ltd.;

 

45

 

	 	 	 	 	 	 	 
	Section Number	 	Specific Disclosure
	 

	 	 	66.	 	 	Sales contract dated March 2, 2009, between QiGi and Tianjing Chiwuxian Tongxun Technology Co., Ltd.;
	 

	 	 	67.	 	 	Sales contract dated March 3, 2009, between QiGi and Shishi Fanhua Dianxun Maoyi Co., Ltd.;
	 

	 	 	68.	 	 	Sales contract dated March 3, 2009, between QiGi and Shenzhen Jinbaolong Digital Technology Co., Ltd.;
	 

	 	 	69.	 	 	Sales contract dated March, 2009, between QiGi and Shenzhen Chuangfeier Electronics Technology Co., Ltd.;
	 

	 	 	70.	 	 	Sales contract dated March, 2009, between QiGi and Shanghai Yitianxia Technology Co., Ltd.;
	 

	 	 	71.	 	 	Sales contract dated Match, 2009, between QiGi and Shanghai Longding Shangwu Co., Ltd.;
	 

	 	 	72.	 	 	Sales contract dated March, 2009, between QiGi and Shanghai Zhengqi Shiye Co., Ltd.;
	 

	 	 	73.	 	 	Sales contract dated March, 2009, between QiGi and Rizhao Taitong Electronics Co., Ltd.;
	 

	 	 	74.	 	 	Sales contract dated March, 2009, between QiGi and Nanjing Puhan Gongmao Shiye Co., Ltd.;
	 

	 	 	75.	 	 	Sales contract dated March, 2009, between QiGi and Hunan Bopu Technology Co., Ltd.;
	 

	 	 	76.	 	 	Sales contract dated March, 2009,
between QiGi and Changzhou Yuntuo Shangmao Co., Ltd.;
	 

	 	 	77.	 	 	Machinery purchase contract dated March 5, 2009, between QiGi and Guangzhou Gaoke Tongxing Technology Co., Ltd.;
	 

	 	 	78.	 	 	Sales contract dated March 6,
2009, between QiGi and Kunming Bangsheng Technology Co., Ltd.;
	 

	 	 	79.	 	 	Sales contract dated March 7, 2009, between QiGi and Henan Zhongzheng Tongxun Co., Ltd.;
	 

	 	 	80.	 	 	Sales contract dated March 7, 2009, between QiGi and Guangzhou Yuanchang Maoyi Co., Ltd.;
	 

	 	 	81.	 	 	Sales contract dated March 7, 2009, between QiGi and Fujian Huaqiao Shiye Group Company;
	 

	 	 	82.	 	 	Sales contract dated March 8, 2009, between QiGi and Hangzhou Jingpusheng Technology Co., Ltd.;
	 

	 	 	83.	 	 	Sales contract dated March 8,
2009, between QiGi and Guangzhou Hengmi Maoyi Co., Ltd.;
	 

	 	 	84.	 	 	Sales contract dated March 8,
2009, between QiGi and Dongguan Shilongjingyingtong Electronics Co., Ltd.;
	 

	 	 	85.	 	 	Sales contract dated March 8, 2009, between QiGi and Chongmingyali Tongxun Technology Co., Ltd.;
	 

	 	 	86.	 	 	Machinery purchase contract dated March 9, 2009, between QiGi and Guangdong Hexin Technology Co., Ltd.;
	 

	 	 	87.	 	 	Machinery purchase contract dated March 10, 2009, between QiGi and Hangzhou Guanyuan Technology Co., Ltd.;
	 

	 	 	88.	 	 	Sales contract dated March 12, 2009, between QiGi and Changsha Zhongtian Tongxun Technology Co., Ltd.;
	 

	 	 	89.	 	 	Sales contract dated March 16,
2009, between QiGi and Kunming Wuyao Tongxun Equipment Co., Ltd.;
	 

	 	 	90.	 	 	Sales contract dated March 16, 2009, between QiGi and Beijing Hanming Tongxing Technology Co., Ltd.;

 

46

 

	 	 	 	 	 	 	 
	Section Number	 	Specific Disclosure
	 

	 	 	91.	 	 	Sales contract dated March 16, 2009, between QiGi and Nanjing Yingshui Tongxun Co., Ltd.;
	 

	 	 	92.	 	 	Sales contract dated March 16, 2009, between QiGi and Hunan Yingyuan Zhongxing Information Technology Co., Ltd.;
	 

	 	 	93.	 	 	Sales contract dated March 16, 2009, between QiGi and Kunming Xingkangcheng Information Technology Co., Ltd.;
	 

	 	 	94.	 	 	Order form dated March 25, 2009, between QiGi and Dexing Wireless Tongxun Technology (Beijing) Co., Ltd.;
	 

	 	 	95.	 	 	Sales contract dated March 2’7, 2009, between QiGi and Yiwu Daoye Internet Technology Co., Ltd.;
	 

	 	 	96.	 	 	Sales contract dated April 1, 2009, between QiGi and Yancheng Ninghu Qiandao Tongxun Equipment Co., Ltd.;
	 

	 	 	97.	 	 	Sales contract dated April 2,
2009, between QiGi and Xuzhou Sanjiu Intelligence Tongxun Co., Ltd.;
	 

	 	 	98.	 	 	Sales contract dated April 2, 2009, between QiGi and Xiamen Huidesheng Maoyi Co., Ltd.;
	 

	 	 	99.	 	 	Sales contract dated April 2, 2009, between QiGi and Wuhan Feiyang Technology Co., Ltd.;
	 

	 	 	100.	 	 	Sales contract dated April 3, 2009, between QiGi and Tianjing Meiritong Shangmao Co., Ltd.;
	 

	 	 	101.	 	 	Sales contract dated April 3, 2009, between QiGi and Suzhou Jingpai Mobile Internet Co., Ltd.;
	 

	 	 	102.	 	 	Sales contract dated April 3, 2009, between QiGi and Shenzhen Guoxing Tongxun Technology Co., Ltd.;
	 

	 	 	103	 	 	Sales contract dated April 3, 2009, between QiGi and Shanghai Shoushang Intelligence Tongxun Equipment Company;
	 

	 	 	104.	 	 	Machinery purchase contract dated April 3, 2009, between QiGi and Shenzhen Zhongketianbo Technology Co., Ltd.;
	 

	 	 	105.	 	 	Sales contract dated April, 2009, between QiGi and Shenzhen Quanqi Digital Co., Ltd.;
	 

	 	 	106.	 	 	Sales contract dated April, 2009, between QiGi and Hefei Jiada Tongxun Technology Co., Ltd.;
	 

	 	 	107.	 	 	Sales contract dated April 4, 2009, between QiGi and Shanghai Liangzeng Gongmao Co., Ltd.;
	 

	 	 	108.	 	 	Sales contract dated April 4,
2009, between QiGi and Qingdao Jingweitiandi Electronics Co., Ltd.;
	 

	 	 	109.	 	 	Sales contract dated April 4, 2009, between QiGi and Nanjing Lanbiao Digital Technology Co., Ltd.;
	 

	 	 	110	 	 	Sales contract dated April 4, 2009, between QiGi and Nanjing Chaoyue Tongxun Equipment Co., Ltd.;
	 

	 	 	111.	 	 	Sales contract dated April 4, 2009, between QiGi and Kunming Hengsheng Tongxun Co., Ltd.;
	 

	 	 	112.	 	 	Sales contract dated April 6,
2009, between QiGi and Jinan Depu Tongxing Equipment Co., Ltd.;
	 

	 	 	113.	 	 	Sales contract dated April 6,
2009, between QiGi and Huizhou Yicheng Technology Co., Ltd.;
	 

	 	 	114.	 	 	Sales contract dated April 7, 2009, between QiGi and Henan Ruite Tongxun Equipment Co., Ltd.;
	 

	 	 	115.	 	 	Sales contract dated April 8, 2009, between QiGi and Hangzhou Maoyi Co., Ltd.;

 

47

 

	 	 	 	 	 	 	 
	Section Number	 	Specific Disclosure
	 

	 	 	116.	 	 	Sales
contract dated April 8, 2009, between QiGi and Guangzhou Chuangwei
Electronics  Technology Co., Ltd.;
	 

	 	 	117.	 	 	Sales contract dated April 8, 2009, between QiGi and Hanzhou Renxing Digital Technology Co., Ltd.;
	 

	 	 	118.	 	 	Sales contract dated April 8, 2009, between QiGi and Foshan Nanhai Tianjun Electronics Co., Ltd.;
	 

	 	 	119.	 	 	Sales contract dated April 8, 2009, between QiGi and Dongguan Lianyu Electronics Co., Ltd.;
	 

	 	 	120.	 	 	Sales contract dated April 8, 2009, between QiGi and Dalian Sanhe Weiye Digital Technology Co., Ltd.;
	 

	 	 	121.	 	 	Sales contract dated April 8, 2009, between QiGi and BeijingBode Technology Service Co., Ltd.;
	 

	 	 	122.	 	 	Sales contract dated April, 2009, between QiGi and Chengdu Huadao Shangmao Co., Ltd.;
	 

	 	 	123.	 	 	Sales contract dated April, 2009, between QiGi and Changde Yongxiang Maoyi Co., Ltd.;
	 

	 	 	124.	 	 	Sales contract dated April, 2009, between QiGi and Wuhan Zhongguang Tongxing Company;
	 

	 	 	125.	 	 	Sales contract dated April, 2009, between QiGi and Shandong Zhonglu Tongxing Technology Co., Ltd.;
	 

	 	 	126.	 	 	Sales contract dated April, 2009, between QiGi and Zhenzhou Ridian Huaxing Technology Co., Ltd.;
	 

	 	 	127.	 	 	Sales contract dated April, 2009, between QiGi and Yunnan Dianxing Co., Ltd. Information Technology Branch;
	 

	 	 	128.	 	 	Machinery purchase contract dated April 15, 2009, between QiGi and Zhejiang Rongxing Technology Development Co., Ltd.;
	 

	 	 	129.	 	 	Machinery purchase contract dated April 16, 2009, between QiGi and Guangzhou Technology Tongxing Technology Co., Ltd.;
	 

	 	 	130.	 	 	Machinery purchase contract dated April 16, 2009, between QiGi and Hangzhou Guangyuan Technology Co., Ltd.;
	 

	 	 	131.	 	 	Machinery purchase contract dated April 18, 2009, between QiGi and Guangdong Hexing Technology Co., Ltd.;
	 

	 	 	132.	 	 	Sales contract dated May 4, 2009, between QiGi and Tianjing Meiritong Shangmao Co., Ltd.;
	 

	 	 	133.	 	 	Sales contract dated May 5, 2009, between QiGi and Changsha Jianfengchaoliu Tongxun Equipment Company;
	 

	 	 	134.	 	 	Sales contract dated May 6, 2009, between QiGi and Shenzhen Lindawei Electronics Technology Shiye Co., Ltd.;
	 

	 	 	135.	 	 	Sales contract dated May 6, 2009, between QiGi and Chongming Yali Tongxun Technology Co., Ltd.;
	 

	 	 	136.	 	 	Sales contract dated May 7, 2009, between QiGi and Jinan Putongxing Equipment Co., Ltd.;
	 

	 	 	137.	 	 	Sales contract dated May 7, 2009, between QiGi and Guangzhou Yuanchang Maoyi Co., Ltd.;
	 

	 	 	138.	 	 	Sales contract dated May 7, 2009, between QiGi and Chengdu Hanbo Shangmao Co., Ltd.;
	 

	 	 	139.	 	 	Sales contract dated May 8, 2009, between QiGi and Chongqing Badatong Electronics Gongcheng Co., Ltd.;
	 

	 	 	140.	 	 	Sales contract dated May 8, 2009, between QiGi and Taiyuan Tianfuweiye Tongxun Equipment Co., Ltd.;

 

48

 

	 	 	 	 	 	 	 
	Section Number	 	Specific Disclosure
	 

	 	 	141.	 	 	Machinery purchase contract dated
May 10, 2009, between QiGi and Shenzhen Zhongketianbo Technology Co., Ltd.
	 

	 	 	142.	 	 	Machinery purchase contract dated May II, 2009, between QiGi and Zhejiang Rongxing Technology Development Co., Ltd.;
	 

	 	 	143.	 	 	Sales contract dated May 11,
2009, between QiGi and Shenzhen Jingyushikong Tongxun Equipment Co., Ltd.;
	 

	 	 	144	 	 	Sales contract dated May 2009,
between QiGi and Shenzhen Quanqi Digital Co., Ltd.;
	 

	 	 	145.	 	 	Machinery purchase contract dated May 12, 2009, between QiGi and Guangzhou Gaoketongxing Technology Co., Ltd.;
	 

	 	 	146.	 	 	Machinery purchase contract dated May 12, 2009, between QiGi and Hanzhou Guangyuan Technology Co., Ltd.;
	 

	 	 	147.	 	 	Sales contract dated May 12, 2009, between QiGi and Wuhan Zhongyu Electronics Co., Ltd.;
	 

	 	 	148.	 	 	Sales contract dated May 12, 2009, between QiGi and Shanghai E-Te Digital Co., Ltd.;
	 

	 	 	149.	 	 	Sales contract dated May 13, 2009, between QiGi and Yunnan Geling Digital Technology Co., Ltd.;
	 

	 	 	150	 	 	Sales contract dated May 13, 2009, between QiGi and Beijing Yiheng Technology Development Co., Ltd.;
	 

	 	 	151	 	 	Sales contract dated May 14, 2009, between QiGi and; Huizhou Yicheng Technology Co., Ltd.
	 

	 	 	152.	 	 	Sales contract dated May 14, 2009, between QiGi and Shijiazhuang Tianwen Tongxun Equipment Co., Ltd.;
	 

	 	 	153.	 	 	Sales contract dated May 15, 2009, between QiGi and Nanjing Runchang Electronics Co., Ltd.;
	 

	 	 	154.	 	 	Sales contract dated May 15, 2009, between QiGi and Wuhan Jiayuan Digital Technology Co., Ltd.;
	 

	 	 	155.	 	 	Sales contract dated May 18, 2009, between QiGi and Nanjing Lanbiao Digital Technology Co., Ltd.;
	 

	 	 	156.	 	 	Sales contract dated May 18, 2009, between QiGi and Hanzhong Yongquan Maoyi Co., Ltd.;
	 

	 	 	157.	 	 	Sales contract dated May 19, 2009, between QiGi and Guangzhou Chuangwei Electronics Technology Co., Ltd.;
	 

	 	 	158.	 	 	Sales contract dated May 20, 2009, between QiGi and Foshan Nanhai Tianjun Electronics Co., Ltd.;
	 

	 	 	159.	 	 	Sales contract dated May 22,
2009, between QiGi and Hennan Jielong Tongxing Technology Co., Ltd.;
	 

	 	 	160.	 	 	Order formdated May 22, 2009, between QiGi and Dexig Intelligent Mobile Technology(Beijing) Co., Ltd.;
	 

	 	 	161.	 	 	Sales contract dated May 25, 2009, between QiGi and Guangzhou Xiangjing Digital Technology Co., Ltd.;
	 

	 	 	162	 	 	Sales contract dated May 28, 2009, between QiGi and Changde Yongxiang Maoyi Co., Ltd.;
	 

	 	 	163.	 	 	Sales contract dated May 28, 2009, between QiGi and Langfang Langbo Tongxun Electronics Technology Co., Ltd.;
	 

	 	 	164.	 	 	Sales contract dated May 29, 2009, between QiGi and Chengdu Jiashi Shiye Jingchukou Maoyi Co., Ltd.;
	 

	 	 	165.	 	 	Sales contract dated May 29, 2009, between QiGi and Xingqiang Gongzhong Information Chanye Co., Ltd.;

 

49

 

	 	 	 	 	 	 	 
	Section Number	 	Specific Disclosure
	 

	 	 	166.	 	 	Sales contract dated June 1, 2009, between QiGi and Henan Zhongzheng Tongxun Co., Ltd.;
	 

	 	 	167.	 	 	Sales contract dated June 1, 2009, between QiGi and Hangzhou Jingpusheng Technology Co., Ltd.;
	 

	 	 	168.	 	 	Sales contract dated June 2, 2009, between QiGi and Kunming Bangsheng Technology Co., Ltd.;
	 

	 	 	169.	 	 	Machinery purchase contract dated June 3, 2009, between QiGi and Zhejiang Rongxing Technology Development Co., Ltd.;
	 

	 	 	170.	 	 	Order form dated June 4, 2009,
between QiGi and Dexing Intelligent Mobile Technology (HK) Co., Ltd.;
	 

	 	 	171.	 	 	Sales contract dated June 5, 2009, between QiGi and Kunming Wuyao Tongxun Equipment Co., Ltd.;
	 

	 	 	172.	 	 	Machinery purchase contract dated
June 7, 2009, between QiGi and Shenzhen Zhongketianbo Technology Co., Ltd.;
	 

	 	 	173.	 	 	Sales contract dated June 8, 2009, between QiGi and Nanning Hengrongchang Shangmao Co., Ltd.;
	 

	 	 	174.	 	 	Sales contract dated June 8, 2009, between QiGi and Rizhao Taitong Electronics Co., Ltd.;
	 

	 	 	175.	 	 	Machinery purchase contract dated June 8, 2009, between QiGi and Hangzhoug Guangyuan Technology Co., Ltd.;
	 

	 	 	176.	 	 	Machinery purchase contract dated June 9, 2009, between QiGi and Guangzhou Gaoke Tongxing Technology Co., Ltd.;
	 

	 	 	177.	 	 	Sales contract dated June 9, 2009, between QiGi and Zhuhai Sankeng Electronics Technology Co., Ltd.;
	 

	 	 	178.	 	 	Sales contract dated June 10, 2009, between QiGi and Zhuhai Shunlian Electronics Co., Ltd.;
	 

	 	 	179.	 	 	Sales contract dated June 10, 2009, between QiGi and Chongqing Kemei Tongxun Equipment Co., Ltd.;
	 

	 	 	180.	 	 	Sales contract dated June 11, 2009, between QiGi and Zhengzhou Yuguang Shangmao Copmany;
	 

	 	 	181.	 	 	Sales contract dated June 11,
2009, between QiGi and Shijiazhuang Tianwen Tongxun Equipment Co., Ltd.;
	 

	 	 	182.	 	 	Sales contract dated June 12,
2009, between QiGi and Beijing Yihengteng Technology Development Co., Ltd.;
	 

	 	 	183.	 	 	Sales contract dated June 15, 2009, between QiGi and Qingdao Jingweitiandi Electronics Co., Ltd.;
	 

	 	 	184.	 	 	Sales contract dated June 15, 2009, between QiGi and Shanghai Situman Sianxing Technology Co., Ltd.;
	 

	 	 	185.	 	 	Sales contract dated
June 2009, between QiGi and Quanzhou Huacheng Dianxing Maoyi Co., Ltd.;
	 

	 	 	186.	 	 	Sales contract dated June 18,
2009, between QiGi and Guangzhou Hengyoumi Maoyi Co., Ltd.;
	 

	 	 	187.	 	 	Sales contract dated June 19, 2009, between QiGi and Guangzhou Yuanchang Maoyi Co., Ltd.;
	 

	 	 	188.	 	 	Sales contract dated June, 2009, between QiGi and Fujian Huaqiao Group Shiye Company;
	 

	 	 	189.	 	 	Sales contract dated June, 2009, between QiGi and Changzhou Yuntuo Shangmao Co., Ltd.;
	 

	 	 	190.	 	 	Sales contract dated June 22, 2009, between QiGi and Changsha Zhongtian Tongxun Technology Co., Ltd.;

 

50

 

	 	 	 	 	 	 	 
	Section Number	 	Specific Disclosure
	 

	 	 	191.	 	 	Sales contract dated June 22,
2009, between QiGi and Nanjing Yingshui Tongxun Co., Ltd.;
	 

	 	 	192.	 	 	Sales contract dated June 23, 2009, between QiGi and Shanghai Yitianxia Technology Co., Ltd.;
	 

	 	 	193.	 	 	Sales contract dated June, 2009, between QiGi and Shenzhen Chuangfeier Electronics Technology Co., Ltd.;
	 

	 	 	194.	 	 	Sales contract dated June, 2009, between QiGi and Shanghai Longding Shangwu Co., Ltd.;
	 

	 	 	195.	 	 	Sales contract dated June 26, 2009, between QiGi and Shenzhen Jingbaolong Digital Technology Co., Ltd.;
	 

	 	 	196.	 	 	Sales contract dated June 26, 2009, between QiGi and Shishi Fanhua Dianxun Maoyi Co., Ltd.;
	 

	 	 	197.	 	 	Sales contract dated .June 26, 2009, between QiGi and Tianjing Chiwuxian Tongxun Technology Co., Ltd.;
	 

	 	 	198.	 	 	Sales contract dated June 29, 2009, between QiGi and Wuhan Bohong Information Technology Co., Ltd.;
	 

	 	 	199.	 	 	Sales contract dated .June 29, 2009, between QiGi and Shanxi Fanggeng Technology Development Co., Ltd.;
	 

	 	 	200.	 	 	Sales contract dated June 30, 2009, between QiGi and Tianjing Tiandi Weiye Technology Co., Ltd.;
	 

	 	 	201.	 	 	Sales contract dated June, 2009, between QiGi and Shandong Yiwei Information Technology Co., Ltd.;
	 

	 	 	202.	 	 	Sales contract dated June, 2009, between QiGi and Beijing Taixing Jiye Technology Development Co., Ltd.;
	 

	 	 	203.	 	 	Sales contract dated July 1, 2009, between QiGi and Chongqing Zhangshangqiankun Digital Technology Co., Ltd.;
	 

	 	 	204.	 	 	Sales contract dated July 1, 2009, between QiGi and Dalian Sanhe Weiye Digital Technology Co., Ltd.;
	 

	 	 	205.	 	 	Sales contract dated .July 2, 2009, between QiGi and Beijing Bote Technology Services Co., Ltd.;
	 

	 	 	206.	 	 	Machinery purchase contract dated July 2, 2009, between QiGi and Hangzhou Guangyuan Technology Co., Ltd.;
	 

	 	 	207.	 	 	Machinery purchase contract dated .July 3, 2009, between QiGi and Shenzhen Zhongketianbo Technology Co., Ltd.;
	 

	 	 	208.	 	 	Sales contract dated .July 3, 2009, between QiGi and Dongguan Lianyu Electronics Co., Ltd.;
	 

	 	 	209.	 	 	Sales contract dated July, 2009, between QiGi and Guangzhou Chuangwei Electronics Technology Co., Ltd.;
	 

	 	 	210.	 	 	Sales contract dated July, 2009, between QiGi and Hangzhou Yongquan Maoyi Co., Ltd.;
	 

	 	 	211.	 	 	Sales contract dated July, 2009,
between QiGi and Nanjing Chaoyue Tongxun Equipment Co., Ltd.;
	 

	 	 	212.	 	 	Sales contract dated July, 2009,
between QiGi and Wuhan Feiyang Technology Co., Ltd.;
	 

	 	 	213.	 	 	Sales contract dated July, 2009, between QiGi and Chengdu Sanling Shengan Information System Co., Ltd.;
	 

	 	 	214.	 	 	Sales contract dated .July 6, 2009, between QiGi and Hanzhou Renxing Digital Technology Co., Ltd.;
	 

	 	 	215.	 	 	Sales contract dated July 6, 2009, between QiGi and Hefei JIada Tongxun Technology Co., Ltd.;

 

51

 

	 	 	 	 	 	 	 
	Section Number	 	Specific Disclosure
	 

	 	 	216.	 	 	Sales contract dated .July 7, 2009, between QiGi and Huizhou Yicheng Technology Co., Ltd.;
	 

	 	 	217.	 	 	Machinery purchase contract dated .July 7, 2009, between QiGi and Zhejiang Rongxing Technology Development Co., Ltd.;
	 

	 	 	218.	 	 	Sales contract dated .July 8, 2009, between QiGi and Henan Ruite Tongxun Equipment Co., Ltd.;
	 

	 	 	219.	 	 	Sales contract dated July 8, 2009, between QiGi and Henan Depu Tongxing Equipment Co., Ltd.;
	 

	 	 	220.	 	 	Sales contract dated July 9, 2009, between QiGi and Kunming Hengsheng Tongxun Co., Ltd.;
	 

	 	 	221.	 	 	Sales contract dated .July 9, 2009, between QiGi and Nanjing Lanbiao Digital Technology Co., Ltd.;
	 

	 	 	222.	 	 	Sales contract dated July 10, 2009, between QiGi and Shanghai Liangzeng Gongcheng Co., Ltd.;
	 

	 	 	223.	 	 	Sales contract dated .July 10, 2009, between QiGi and Qingdao Weitiandi Electronics Co., Ltd.;
	 

	 	 	224.	 	 	Sales contract dated July 13, 2009, between QiGi and Shenzhen Quanqi Digital Co., Ltd.;
	 

	 	 	225.	 	 	Machinery purchase contract dated July 13, 2009, between QiGi and Guangzhou Gaoke Tongxing Technology Co., Ltd.;
	 

	 	 	226.	 	 	Sales contract dated July 13, 2009, between QiGi and Shanghai Shoushang Intelligence Tongxun Equipment Company;
	 

	 	 	227.	 	 	Sales contract dated July 15, 2009, between QiGi and Shenzhen Guoxing Tongxun Technology Co., Ltd.;
	 

	 	 	228.	 	 	Sales contract dated July 15, 2009, between QiGi and Suzhou Jingpai Mibile Phone Network Co., Ltd.;
	 

	 	 	229.	 	 	Sales contract dated July 16,
2009, between QiGi and Xiamen Huidesheng Maoyi Co., Ltd.;
	 

	 	 	230.	 	 	Sales contract dated July 16, 2009, between QiGi and Xuzhou Sanjiu Intelligence Tongxun Co., Ltd.;
	 

	 	 	231.	 	 	Sales contract dated .July 18, 2009, between QiGi and Yanhu Ninghu District Qiandao Tongxun Equipment Co., Ltd.;
	 

	 	 	232.	 	 	Sales contract dated July 20,
2009, between QiGi and Yiwu Daoye Internet Technology Co., Ltd.;
	 

	 	 	233.	 	 	Sales contract dated July 20, 2009, between QiGi and Kunming Changcheng Information Technology Co., Ltd.;
	 

	 	 	234.	 	 	Sales contract dated .July 21, 2009, between QiGi and Beijing Mobile Xingzhi Tongxun Technology Co., Ltd.;
	 

	 	 	235.	 	 	Sales contract dated .July 21, 2009, between QiGi and Taiyuan Huiling Tongxing Information Technology Co., Ltd.;
	 

	 	 	236.	 	 	Machinery purchase contract dated
August 2, 2009, between QiGi and Shenzhen Zhongketianbo Technology Co., Ltd.;
	 

	 	 	237.	 	 	Machinery purchase contract dated August 3, 2009, between QiGi and Zhejiang Rongxing Technology Development Co., Ltd.;
	 

	 	 	238.	 	 	Sales contract dated August 4, 2009, between QiGi and Chengdu Huadao Shangmao Co., Ltd.;
	 

	 	 	239.	 	 	Sales contract dated August 4, 2009, between QiGi and Guangzhou Zhongxian Electronics Technology Co., Ltd.;
	 

	 	 	240.	 	 	Sales contract dated August 4, 2009, between QiGi and Wuxi Intelligence Mobile Phone Technology Service Company;

 

52

 

	 	 	 	 	 	 	 
	Section Number	 	Specific Disclosure
	 

	 	 	241.	 	 	Machinery purchase contract dated August 5, 2009, between QiGi and Guangzhou Gaoke Tongxung Technology Co., Ltd.;
	 

	 	 	242.	 	 	Sales contract dated August, 2009, between QiGi and Xuzhou Yitong Intelligence Tongxun Co., Ltd.;
	 

	 	 	243.	 	 	Sales contract dated August, 2009, between QiGi and Chongqing Feihong Mobile Tongxun Equipment Co., Ltd.;
	 

	 	 	244.	 	 	Sales contract dated August, 2009, between QiGi and Taiyuan Tianfu Weiye Tongxun Equipment Co., Ltd.;
	 

	 	 	245.	 	 	Sales contract dated August, 2009, between QiGi and Shanghai E-Te Digital Co., Ltd.;
	 

	 	 	246.	 	 	Sales contract dated August, 2009, between QiGi and Wuhan Jiayuan Digital Technology Co., Ltd.;
	 

	 	 	247.	 	 	Sales contract dated August, 2009, between QiGi and Nanjing Lanbiao Digital Technology Co., Ltd.;
	 

	 	 	248.	 	 	Sales contract dated August, 2009, between QiGi and Foshan Nanhai Tianjun Electronics Co., Ltd.;
	 

	 	 	249.	 	 	Sales contract dated August, 2009, between QiGi and Zhengzhou Ridianhua Information Technology Co., Ltd.;
	 

	 	 	250.	 	 	Sales contract dated August, 2009, between QiGi and Yunnan Dianxing Co., Ltd. Information Technology Branch;
	 

	 	 	251.	 	 	Sales contract dated August 7, 2009, between QiGi and Jinan Depu Tongxing Equipment Co., Ltd.;
	 

	 	 	252.	 	 	Sales contract dated August 7, 2009, between QiGi and Chongming Yali Tongxun Technology Co., Ltd.;
	 

	 	 	253.	 	 	Sales contract dated August 10, 2009, between QiGi and Shenzhen Lindawei Electronics Technology Shiye Co., Ltd.;
	 

	 	 	254.	 	 	Sales contract dated August 10, 2009, between QiGi and Changsha Jianfenghu Chaoliu Tongxun Equipment Company;
	 

	 	 	255.	 	 	Sales contract dated August 13, 2009, between QiGi and Tianjin Miritong Shangmao Co., Ltd.;
	 

	 	 	256.	 	 	Sales contract dated August 17, 2009, between QiGi and Shenzhen  Tongxun Equipment Co., Ltd.;
	 

	 	 	257.	 	 	Sales contract dated August 19, 2009, between QiGi and Shenzhen  Digital Co., Ltd.;
	 

	 	 	258.	 	 	Sales contract dated August 19, 2009, between QiGi and Wuhan Zhongyu Electronics Co., Ltd.;
	 

	 	 	259.	 	 	Sales contract dated August 21, 2009, between QiGi and Yunnan Gelin Digital Technology Co., Ltd.;
	 

	 	 	260.	 	 	Sales contract dated August 21, 2009, between QiGi and Beijing Yihenteng Technology Development Co., Ltd.;
	 

	 	 	261.	 	 	Sales contract dated August 24, 2009, between QiGi and Huizhou Yicheng Technology Co., Ltd.;
	 

	 	 	262.	 	 	Sales contract dated August 27, 2009, between QiGi and Guangzhou Chuangwei Electronics  Technology Co., Ltd.;
	 

	 	 	263.	 	 	Sales contract dated August 28, 2009, between QiGi and Henan Jielong Tongxin Technology Co., Ltd.;
	 

	 	 	264.	 	 	Sales contract dated August 28, 2009, between QiGi and Guangzhou Xiangjin Digital Technology Co., Ltd.;
	 

	 	 	265.	 	 	Sales contract dated August 31, 2009, between QiGi and Changde Yongxiang Maoyi Co., Ltd.;

 

53

 

	 	 	 	 	 	 	 
	Section Number	 	Specific Disclosure
	 

	 	 	266.	 	 	Sales contract dated August 31, 2009, between QiGi and Hunan Yingyuan Zhongxing Information Technology Co., Ltd.;
	 

	 	 	267.	 	 	Sales contract dated September 1, 2009, between QiGi and Yunnan Dianxing Co., Ltd. Information Technology Branch;
	 

	 	 	268.	 	 	Sales contract dated September 1, 2009, between QiGi and Shanghai Yitianxia Technology Co., Ltd.;
	 

	 	 	269.	 	 	Sales contract dated September 2, 2009, between QiGi and Shenzhen Jingbaolong Digital Technology Co., Ltd.;
	 

	 	 	270.	 	 	Machinery purchase contract dated September 2, 2009, between QiGi and Zhejiang Rongxing Technology Development Co., Ltd.;
	 

	 	 	271.	 	 	Machinery purchase contract dated September 2, 2009, between QiGi and Shenzhen Zhongke Tianbo Technology Co., Ltd.;
	 

	 	 	272.	 	 	Machinery purchase contract dated September 3, 2009, between QiGi and Shenzhen Zhongke Tianbo Technology Co., Ltd.;
	 

	 	 	273.	 	 	Sales contract dated September,
2009, between QiGi and Shenzhen Chuangfeier Electronics Technology Co., Ltd.;
	 

	 	 	274.	 	 	Sales contract dated September, 2009, between QiGi and Nanjing Yingshui Tongxun Co., Ltd.;
	 

	 	 	275.	 	 	Sales contract dated September, 2009, between QiGi and Guangzhou Hengmi Maoyi Co., Ltd.;
	 

	 	 	276.	 	 	Sales contract dated September, 2009, between QiGi and Beijing Hanming Xingtong Technology Co., Ltd.;
	 

	 	 	277.	 	 	Sales contract dated September, 2009, between QiGi and Kunming Bangsheng Technology Co., Ltd.;
	 

	 	 	278.	 	 	Sales contract dated September, 2009, between QiGi and Kunming Wuyao Tongxun Equipment Co., Ltd.;
	 

	 	 	279.	 	 	Sales contract dated September, 2009, between QiGi and Dongguan Lianyu Electronics Co., Ltd.;
	 

	 	 	280.	 	 	Sales contract dated September,
2009, between QiGi and Shijiazhuang Tainwen Tongxun Equipment Co., Ltd.;
	 

	 	 	281.	 	 	Sales contract dated September,
2009, between QiGi and Changzhou Yuntuo Shangmao Co., Ltd.;
	 

	 	 	282.	 	 	Sales contract dated September, 2009, between QiGi and Chengdu Jiashi Shiye Jingchukou Maoyi Co., Ltd.;
	 

	 	 	283.	 	 	Sales contract dated September, 2009, between QiGi and Zhenzhou Ridianhua Information Technology Co., Ltd.;
	 

	 	 	284.	 	 	Sales contract dated September, 2009, between QiGi and Xingqiang Gongzhong Information Chanye Co., Ltd.;
	 

	 	 	285.	 	 	Sales contract dated September, 2009, between QiGi and Langfang Langbo Tongxun Electronics Technology Co., Ltd.;
	 

	 	 	286.	 	 	Sales contract dated September 4, 2009, between QiGi and Shanghai Longding Shangwu Co., Ltd.;
	 

	 	 	287.	 	 	Sales contract dated September 4, 2009, between QiGi and Changsha Zhongtian Tongxun Technology Co., Ltd.;
	 

	 	 	288.	 	 	Sales contract dated September 4, 2009, between QiGi and Shanghai Longding Shangwu Co., Ltd.;
	 

	 	 	289.	 	 	Sales contract dated September 7, 2009, between QiGi and Guangzhou Yuanchang Maoyi Co., Ltd.;
	 

	 	 	290.	 	 	Machinery purchase contract dated September 8, 2009, between QiGi and Guangzhou Gaoke Tongxing Technology Co., Ltd.;

 

54

 

	 	 	 	 	 	 	 
	Section Number	 	Specific Disclosure
	 

	 	 	291.	 	 	Advertising information distribution contract dated September 8, 2009, between QiGi and Beiheng Chaomeng Wangxing Technology Co., Ltd.;
	 

	 	 	292.	 	 	Sales contract dated September 9, 2009, between QiGi and Quanzhou Huachen Dianxun Maoyi Co., Ltd.;
	 

	 	 	293.	 	 	Sales contract dated September 9, 2009, between QiGi and Qingdao Jingwei Tiandi Electronics Co., Ltd.;
	 

	 	 	294.	 	 	Machinery purchase contract dated September 10, 2009, between QiGi and Zhejiang Rongxing Technology Development Co., Ltd.;
	 

	 	 	295.
	 	 	Machinery purchase contract dated September 10, 2009, between QiGi and Shenzhen Zhongke Tianbo Technology Co., Ltd.;

	 

	 	 	
296.	 	 	
Sales contract dated September 11, 2009, between QiGi and Hefei Jiada Tongxun Technology Co., Ltd.;
	 

	 	 	297.	 	 	Sales contract dated September 11, 2009, between QiGi and Xiamen Huidesheng Maoyi Co., Ltd.;
	 

	 	 	298.	 	 	Sales contract dated September 14, 2009, between QiGi and Chongqing Tiandisheyuan Shangmao Co., Ltd.;
	 

	 	 	299.	 	 	Sales contract dated September 14, 2009, between QiGi and Henan Zhongzheng Tongxun Co., Ltd.;
	 

	 	 	300.	 	 	Sales contract dated September 16, 2009, between QiGi and Hangzhou Jingpu Technology Co., Ltd.;
	 

	 	 	301.	 	 	Sales contract dated September 17, 2009, between QiGi and Nanning Hengrongchang Shangmao Co., Ltd.;
	 

	 	 	302.	 	 	Sales contract dated September 17, 2009, between QiGi and Rizhao Taitong Electronics Co., Ltd.;
	 

	 	 	303.	 	 	Machinery purchase contract dated September 20, 2009, between QiGi and Zhejiang Rongxing Technology Development Co., Ltd.;
	 

	 	 	304.	 	 	Sales contract dated September 21, 2009, between QiGi and Zhuhai Sanken Electronics Technology Co., Ltd.;
	 

	 	 	305.	 	 	Sales contract dated September 21, 2009, between QiGi and Chongqing Kemei Tongxun Shebei Co., Ltd.;
	 

	 	 	306.	 	 	Sales contract dated September 23, 2009, between QiGi and Zhengzhou Yuguang Shangmao Co., Ltd.;
	 

	 	 	307.	 	 	Sales contract dated September 25, 2009, between QiGi and Beijing Yihengteng Technology Development Co., Ltd.;
	 

	 	 	308.	 	 	Sales contract dated September 28, 2009, between QiGi and Shanghai Tuman Dianxing Technology Co., Ltd.;
	 

	 	 	309.	 	 	Sales contract dated September 28, 2009, between QiGi and Fujian Huaqiao Shiye Group Co., Ltd.;
	 

	 	 	310.	 	 	Sales contract dated September 29, 2009, between QiGi and Shandong Zhonglu Tongxing Technology Co., Ltd.;
	 

	 	 	311.	 	 	Sales contract dated September 30, 2009, between QiGi and Tianjin Tiandi Weiye Technology Co., Ltd.

 

55

 

	 	 	 	 	 	 	 
	Section Number	 	Specific Disclosure
	Section 10.4	 	nil
	Section 11.1	 	nil
	Section 11.3	 	nil
	Section 13	 	nil
	Section 15	 	nil
	Section 16.1	 	nil
	Section 16.7	 	All the employees of the Domestic Company has participated in the mandatory social insurance scheme and the housing funds scheme.
	Section 17	 	nil
	Section 18	 	nil
	Section 22	 	nil
	Section 23.1	 	nil
	Section 23.2	 	nil

 

56

 

SCHEDULE 7

REPRESENTATIONS AND WARRANTIES OF THE PURCHASER

The Purchaser represents and warrants to the Company that the statements contained in this
Schedule 7 attached hereto are true, correct and complete with respect to such Purchaser as
of the Closing.

	1.	 	Authorization.

The Purchaser has full power, authority and legal capacity to enter into, deliver and
perform the Transaction Documents. The Transaction Documents to which the Purchaser is a
party, when executed and delivered by such Purchaser, will constitute valid and legally
binding obligations of the Purchaser, enforceable in accordance with their terms, except (i)
as limited by applicable bankruptcy, insolvency, reorganization, moratorium, fraudulent
conveyance, and any other laws of general application affecting enforcement of creditors’
rights generally, and as limited by laws relating to the availability of a specific
performance, injunctive relief, or other equitable remedies, or (ii) to the extent the
indemnification provisions contained in the Shareholders’ Agreement may be limited by
applicable securities laws.

	2.	 	Compliance with other Instruments. 

The execution, delivery and performance by the Purchaser of the Transaction Documents does
not and will not contravene, breach or violate the terms of any agreement, document or
instrument to which such Purchaser is a party or by which any of such Purchaser ‘s assets or
properties are bound.

	3.	 	Disclosure of Information.

The Purchaser has had an opportunity to discuss the Group Companies’ business, management,
financial affairs and the terms and conditions of the offering of the Shares with the Group
Companies’ management and has had an opportunity to review the Group Companies’ facilities.
The foregoing, however, does not limit or modify the representations and warranties of the
Warrantor in Section 4 of this Agreement, or the right of the Purchaser to rely
thereon save as set forth in the Disclosure Schedule.

	4.	 	Purchase Entirely for Own Account.

This Agreement is made with the Purchaser in reliance upon the Purchaser’s representation to
the Company, which by the Purchaser’s execution of this Agreement, the Purchaser hereby
confirms, that the Shares to be acquired by the Purchaser will be acquired for investment
for the Purchaser’s own account, not as a nominee or agent, and not with a view to the
resale or distribution of any part thereof, and that the Purchaser has no present intention
of selling, granting any participation in, or otherwise distributing the same. By executing
this Agreement, the Purchaser further represents that the Purchaser does not presently have
any contract, undertaking, agreement or arrangement with any Person to sell, transfer or
grant participations to such Person or to any third Person, with respect to any of the
Shares. The Purchaser has not been formed for the specific purpose of acquiring the Shares.

 

57

 

SCHEDULE 8 

CAPITALIZATION TABLE

	 	 	 	 	 	 	 	 	 	 	 
	 	 	Shareholders	 	 	 	 	 	 
	Shareholders	 	(Class B Ordinary	 	 	 	 	 	 
	(Ordinary Shares)	 	Shares)	 	Number	 	 	Percentage	 
	 
	 
	Active Century Holdings Limited
	 	 	 	 	96	 	 	 	96	%
	 
	 	China Techfaith Wireless Communication Technology Limited	 	 	4	 	 	 	4	%
	 
	 	 	 	 	 	 	 	 	 	 
	Total
	 	 	 	 	100	 	 	 	100	%

 

58

 

EXHIBIT A-1

PLAN OF RESTRUCTURING

(attached)

 

59

 

EXHIBIT A-2

FORM OF CONTROL DOCUMENTS

(attached)

 

60

 

EXHIBIT B

RESTATED ARTICLES

(attached)

 

61

 

EXHIBIT C

SHAREHOLDERS’ AGREEMENT

(attached)

 

62

 

EXHIBIT D

LETTER OF COMMITMENT AND NON-COMPETE

(attached)

 

63

 

EXHIBIT E

FORM OF EMPLOYMENT AGREEMENT

(attached)

 

64

 

EXHIBIT F-1

FORM OF DIRECTOR COMPLIANCE CERTIFICATE

(attached)

 

65

 

EXHIBIT F-2

FORM OF FOUNDERS COMPLIANCE CERTIFICATE

(attached)

 

66

 

EXHIBIT G

FORM OF INDEMNIFICATION AGREEMENT

(attached)

 

67

 

EXHIBIT H

FORM OF MANAGEMENT RIGHTS LETTER

(attached)

 

68

 

EXHIBIT I

FORM OF INTELLECTUAL PROPERTY ASSIGNMENT AGREEMENT

(attached)

 

69

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