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    EXHIBIT
      4.1

    
 

    INDENTURE

     

    among

     

    AAMES
      MORTGAGE INVESTMENT TRUST 2006-1

    Issuer

     

    WELLS
      FARGO BANK, N.A.,

    Trust
      Administrator

     

    and

     

    DEUTSCHE
      BANK NATIONAL TRUST COMPANY

    Indenture
      Trustee

     

    Dated
      as
      of April 1, 2006

     

    
      
        
           

        

        
        

      

      
        
        

        
          

        

      

      
        
        

        
          

        

      

    

    TABLE
      OF
      CONTENTS

     

    

     

     

    ARTICLE
      I

     

    DEFINITIONS
      AND INCORPORATION BY REFERENCE

    
      	
              Section
                1.01

            	
              Definitions

            	 

    

    
      	
              Section
                1.02

            	
              Incorporation
                by Reference of Trust Indenture Act

            	 

    

    
      	
              Section
                1.03

            	
              Rules
                of Construction

            	 

    

     

    ARTICLE
      II

     

    THE
      NOTES

    
      	
              Section
                2.01

            	
              Form

            	 

    

    
      	
              Section
                2.02

            	
              Execution,
                Authentication and Delivery

            	 

    

    
      	
              Section
                2.03

            	
              Limitation
                on Transfer of Notes

            	 

    

    
      	
              Section
                2.04

            	
              Registration;
                Registration of Transfer and Exchange

            	 

    

    
      	
              Section
                2.05

            	
              Mutilated,
                Destroyed, Lost or Stolen Notes

            	 

    

    
      	
              Section
                2.06

            	
              Persons
                Deemed Owners

            	 

    

    
      	
              Section
                2.07

            	
              Payment
                of Principal and Interest

            	 

    

    
      	
              Section
                2.08

            	
              Cancellation

            	 

    

    
      	
              Section
                2.09

            	
              Release
                of Collateral

            	 

    

    
      	
              Section
                2.10

            	
              Book-Entry
                Notes

            	 

    

    
      	
              Section
                2.11

            	
              Notices
                to Clearing Agency

            	 

    

    
      	
              Section
                2.12

            	
              Definitive
                Notes

            	 

    

    
      	
              Section
                2.13

            	
              Tax
                Treatment

            	 

    

     

    ARTICLE
      III

     

    COVENANTS

    
      	
              Section
                3.01

            	
              Payment
                of Principal and Interest

            	 

    

    
      	
              Section
                3.02

            	
              Maintenance
                of Office or Agency

            	 

    

    
      	
              Section
                3.03

            	
              Money
                for Payments to be Held in Trust

            	 

    

    
      	
              Section
                3.04

            	
              Existence

            	 

    

    
      	
              Section
                3.05

            	
              Protection
                of Collateral

            	 

    

    
      	
              Section
                3.06

            	
              Opinions
                as to Collateral

            	 

    

    
      	
              Section
                3.07

            	
              Performance
                of Obligations

            	 

    

    
      	
              Section
                3.08

            	
              Negative
                Covenants

            	 

    

    
      	
              Section
                3.09

            	
              Annual
                Statement as to Compliance

            	 

    

    
      	
              Section
                3.10

            	
              Treatment
                of Notes as Debt for Tax Purposes

            	 

    

    
      	
              Section
                3.11

            	
              [Reserved]

            	 

    

    
      	
              Section
                3.12

            	
              No
                Other Business

            	 

    

    
      	
              Section
                3.13

            	
              No
                Borrowing

            	 

    

    
      	
              Section
                3.14

            	
              [Reserved].

            	 

    

    
      	
              Section
                3.15

            	
              Guarantees,
                Loans, Advances and Other Liabilities

            	 

    

    
      	
              Section
                3.16

            	
              Capital
                Expenditures

            	 

    

    
      	
              Section
                3.17

            	
              Removal
                of Trust Administrator

            	 

    

    
      	
              Section
                3.18

            	
              Restricted
                Payments

            	 

    

    
      	
              Section
                3.19

            	
              Notice
                of Events of Default

            	 

    

    
      	
              Section
                3.20

            	
              Further
                Instruments and Acts

            	 

    

    
      	
              Section
                3.21

            	
              Covenants
                of the Issuer

            	 

    

    
      	
              Section
                3.22

            	
              Representations
                and Warranties of the Issuer

            	 

    

     

    ARTICLE
      IV

     

    SATISFACTION
      AND DISCHARGE

    
      	
              Section
                4.01

            	
              Satisfaction
                and Discharge of Indenture

            	 

    

    
      	
              Section
                4.02

            	
              Application
                of Trust Money

            	 

    

    
      	
              Section
                4.03

            	
              Repayment
                of Moneys Held by Paying Agent

            	 

    

    
      	
              Section
                4.04

            	
              Trust
                Money Received by Indenture Trustee

            	 

    

     

    ARTICLE
      V

     

    REMEDIES

    
      	
              Section
                5.01

            	
              Events
                of Default

            	 

    

    
      	
              Section
                5.02

            	
              Acceleration
                of Maturity; Rescission and Annulment

            	 

    

    
      	
              Section
                5.03

            	
              Collection
                of Indebtedness and Suits for Enforcement by Indenture
                Trustee

            	 

    

    
      	
              Section
                5.04

            	
              Remedies;
                Priorities

            	 

    

    
      	
              Section
                5.05

            	
              Optional
                Preservation of the Collateral

            	 

    

    
      	
              Section
                5.06

            	
              Limitation
                of Suits

            	 

    

    
      	
              Section
                5.07

            	
              Unconditional
                Rights of Noteholders To Receive Principal and Interest

            	 

    

    
      	
              Section
                5.08

            	
              Restoration
                of Rights and Remedies

            	 

    

    
      	
              Section
                5.09

            	
              Rights
                and Remedies Cumulative

            	 

    

    
      	
              Section
                5.10

            	
              Delay
                or Omission Not a Waiver

            	 

    

    
      	
              Section
                5.11

            	
              Control
                by Noteholders

            	 

    

    
      	
              Section
                5.12

            	
              Waiver
                of Past Defaults

            	 

    

    
      	
              Section
                5.13

            	
              Undertaking
                for Costs

            	 

    

    
      	
              Section
                5.14

            	
              Waiver
                of Stay or Extension Laws

            	 

    

    
      	
              Section
                5.15

            	
              Action
                on Notes

            	 

    

    
      	
              Section
                5.16

            	
              Performance
                and Enforcement of Certain Obligations

            	 

    

     

    ARTICLE
      VI

     

    THE
      INDENTURE TRUSTEE

    
      	
              Section
                6.01

            	
              Duties
                of Indenture Trustee

            	 

    

    
      	
              Section
                6.02

            	
              Rights
                of Indenture Trustee

            	 

    

    
      	
              Section
                6.03

            	
              Individual
                Rights of Indenture Trustee

            	 

    

    
      	
              Section
                6.04

            	
              Indenture
                Trustee’s Disclaimer

            	 

    

    
      	
              Section
                6.05

            	
              Notice
                of Defaults

            	 

    

    
      	
              Section
                6.06

            	
              Reports
                by Trust Administrator to Holders

            	 

    

    
      	
              Section
                6.07

            	
              Compensation
                and Indemnity

            	 

    

    
      	
              Section
                6.08

            	
              Replacement
                of Indenture Trustee

            	 

    

    
      	
              Section
                6.09

            	
              Successor
                Indenture Trustee or Trust Administrator by Merger

            	 

    

    
      	
              Section
                6.10

            	
              Appointment
                of Co-Indenture Trustee or Separate Indenture Trustee

            	 

    

    
      	
              Section
                6.11

            	
              Eligibility;
                Disqualification

            	 

    

    
      	
              Section
                6.12

            	
              Representations
                and Warranties

            	 

    

    
      	
              Section
                6.13

            	
              Preferential
                Collection of Claims Against Issuer

            	 

    

     

    ARTICLE
      VII

     

    NOTEHOLDERS’
      LISTS AND REPORTS

    
      	
              Section
                7.01

            	
              Note
                Registrar To Furnish to the Indenture Trustee the Names and Addresses
                of
                Noteholders

            	 

    

    
      	
              Section
                7.02

            	
              Preservation
                of Information; Communications to Noteholders

            	 

    

    
      	
              Section
                7.03

            	
              Reports
                by Issuer

            	 

    

    
      	
              Section
                7.04

            	
              Reports
                by Indenture Trustee

            	 

    

     

    ARTICLE
      VIII

     

    ACCOUNTS,
      DISBURSEMENTS AND RELEASES

    
      	
              Section
                8.01

            	
              Collection
                of Money

            	 

    

    
      	
              Section
                8.02

            	
              Collection
                Account

            	 

    

    
      	
              Section
                8.03

            	
              Release
                of Collateral

            	 

    

     

    ARTICLE
      IX

     

    SUPPLEMENTAL
      INDENTURES

    
      	
              Section
                9.01

            	
              Supplemental
                Indentures Without Consent of Noteholders

            	 

    

    
      	
              Section
                9.02

            	
              Supplemental
                Indentures with Consent of Noteholders

            	 

    

    
      	
              Section
                9.03

            	
              Execution
                of Supplemental Indentures

            	 

    

    
      	
              Section
                9.04

            	
              Effect
                of Supplemental Indenture

            	 

    

    
      	
              Section
                9.05

            	
              Conformity
                with Trust Indenture Act

            	 

    

    
      	
              Section
                9.06

            	
              Reference
                in Notes to Supplemental Indentures

            	 

    

    
      	
              Section
                9.07

            	
              Opinion
                of Counsel

            	 

    

     

    ARTICLE
      X

     

    REDEMPTION
      OF NOTES

    
      	
              Section
                10.01

            	
              Redemption

            	 

    

    
      	
              Section
                10.02

            	
              Form
                of Redemption Notice

            	 

    

    
      	
              Section
                10.03

            	
              Notes
                Payable on Applicable Redemption Date

            	 

    

     

    ARTICLE
      XI

     

    MISCELLANEOUS

    
      	
              Section
                11.01

            	
              Compliance
                Certificates and Opinions, etc

            	 

    

    
      	
              Section
                11.02

            	
              Form
                of Documents Delivered to Indenture Trustee

            	 

    

    
      	
              Section
                11.03

            	
              Acts
                of Noteholders

            	 

    

    
      	
              Section
                11.04

            	
              Notices,
                etc., to Indenture Trustee, Trust Administrator, Issuer and Rating
                Agencies

            	 

    

    
      	
              Section
                11.05

            	
              Notices
                to Noteholders; Waiver

            	 

    

    
      	
              Section
                11.06

            	
              Conflict
                with Trust Indenture Act

            	 

    

    
      	
              Section
                11.07

            	
              Effect
                of Headings and Table of Contents

            	 

    

    
      	
              Section
                11.08

            	
              Successors
                and Assigns

            	 

    

    
      	
              Section
                11.09

            	
              Severability

            	 

    

    
      	
              Section
                11.10

            	
              Benefits
                of Indenture and Consents of Noteholders

            	 

    

    
      	
              Section
                11.11

            	
              Legal
                Holidays

            	 

    

    
      	
              Section
                11.12

            	
              Governing
                Law

            	 

    

    
      	
              Section
                11.13

            	
              Counterparts

            	 

    

    
      	
              Section
                11.14

            	
              Recording
                of Indenture

            	 

    

    
      	
              Section
                11.15

            	
              Trust
                Obligations

            	 

    

    
      	
              Section
                11.16

            	
              No
                Petition

            	 

    

    
      	
              Section
                11.17

            	
              Inspection

            	 

    

    

    

    EXHIBITS

     

    EXHIBIT
      A    Forms
      of
      Notes

    EXHIBIT
      B    Form
      of
      ERISA Transfer Affidavit

     

    
      
        
        

        
        

      

      
        
        

        
          

        

      

      
        
        

        
          

        

      

    

    This
      INDENTURE, dated as of April 1, 2006, is among AAMES MORTGAGE INVESTMENT TRUST
      2006-1, a Delaware statutory trust (the “Issuer”), WELLS FARGO BANK, N.A., as
      Trust Administrator (the “Trust Administrator”) and DEUTSCHE BANK NATIONAL TRUST
      COMPANY, as indenture trustee and not in its individual capacity (the “Indenture
      Trustee”).

     

    Each
      party agrees as follows for the benefit of the other party, for the equal and
      ratable benefit of the Holders of the Issuer’s variable rate Notes in the
      Classes specified herein (the “Notes”):

     

    GRANTING
      CLAUSE

     

    The
      Issuer hereby Grants to the Indenture Trustee at the Closing Date, as Indenture
      Trustee for the benefit of the Holders of the Notes, all of the Issuer’s right,
      title and interest, whether now owned or hereafter acquired, in and to: (i)
      the
      Trust Estate; (ii) the Issuer’s rights and benefits but none of its obligations
      under the Transfer and Servicing Agreement (including the Issuer’s right to
      cause the Seller to repurchase Mortgage Loans from the Issuer under the
      circumstances described therein); (iii) the Issuer’s rights and benefits but
      none of its obligations under the Custodial Agreement; (iv) the Issuer’s rights
      and benefits but none of its obligations under the Mortgage Loan Purchase
      Agreement; (v) the Trust Account and all amounts and property in the Trust
      Account from time to time, and the Security Entitlements to all Financial Assets
      credited to such accounts from time to time; (vi) all other property of the
      Trust from time to time; and (vii) all present and future claims, demands,
      causes of action and choses in action in respect of any or all of the foregoing
      and all payments on or under and all proceeds of every kind and nature
      whatsoever in respect of any or all of the foregoing, including all proceeds
      of
      the conversion thereof, voluntary or involuntary, into cash or other liquid
      property, all cash proceeds, accounts, accounts receivable, notes, drafts,
      acceptances, chattel paper, checks, deposit accounts, insurance proceeds,
      condemnation awards, rights to payment of any and every kind and other forms
      of
      obligations and receivables, instruments and other property which at any time
      constitute all or part of or are included in the proceeds of any of the
      foregoing (collectively, the “Collateral”).

     

    The
      foregoing Grant is made in trust to secure the payment of principal of and
      interest on, and any other amounts owing in respect of, the Notes, and to secure
      (i) the payment of all amounts due on the Notes in accordance with their terms,
      (ii) the payment of all other sums payable under the Indenture with respect
      to
      the Notes, and (iii) compliance with the provisions of this Indenture, all
      as
      provided in this Indenture.

     

    The
      Indenture Trustee, as Indenture Trustee on behalf of the Holders of the Notes,
      acknowledges such Grant, accepts the trusts under this Indenture in accordance
      with the provisions of this Indenture and agrees to perform its duties required
      of it in this Indenture in accordance with its terms.

     

    ARTICLE
      I

     

    DEFINITIONS
      AND INCORPORATION BY REFERENCE

     

    Section
      1.01  Definitions.
      (a)
      Except
      as otherwise specified herein or as the context may otherwise require, the
      following terms have the respective meanings set forth below for all purposes
      of
      this Indenture.

     

    Act:
      The
      meaning specified in Section 11.03(a).

     

    Authorized
      Officer:
      With
      respect to the Issuer, any officer of the Owner Trustee who is authorized to
      act
      for the Owner Trustee in matters relating to the Issuer and who is identified
      on
      the list of Authorized Officers delivered by the Owner Trustee to the Indenture
      Trustee on the Closing Date (as such list may be modified or supplemented from
      time to time thereafter) and, so long as the Transfer and Servicing Agreement
      is
      in effect, any Vice President, Assistant Vice President, Trust Officer or more
      senior officer of the Trust Administrator who is authorized to act for the
      Trust
      Administrator in matters relating to the Issuer and to be acted upon by the
      Trust Administrator pursuant to the Transfer and Servicing Agreement and who
      is
      identified on the list of Authorized Officers delivered by the Trust
      Administrator to the Indenture Trustee on the Closing Date (as such list may
      be
      modified or supplemented from time to time thereafter).

     

    Book-Entry
      Notes:
      Beneficial interests in Notes designated as “Book-Entry Notes” in this
      Indenture, ownership and transfers of which shall be evidenced or made through
      book entries by a Clearing Agency as described in Section 2.11; provided, that
      after the occurrence of a condition whereupon Definitive Notes are to be issued
      to Note Owners, such Book-Entry Notes shall no longer be “Book-Entry
      Notes.”

     

    Certificate
      of Trust:
      The
      certificate of trust of the Issuer substantially in the form of Exhibit C to
      the
      Trust Agreement.

     

    Clearing
      Agency:
      An
      organization registered as a “clearing agency” pursuant to Section 17A of the
      Exchange Act, as amended. As of the Closing Date, the Clearing Agency shall
      be
      The Depository Trust Company.

     

    Clearing
      Agency Participant:
      A
      broker, dealer, bank, other financial institution or other Person for whom
      from
      time to time a Clearing Agency effects book-entry transfers and pledges of
      securities deposited with the Clearing Agency.

     

    Clearstream:
      Clearstream Banking, société anonyme, and any successor thereto.

     

    Collateral:
      The
      meaning specified in the Granting Clause of this Indenture.

     

    Commission:
      The
      Securities and Exchange Commission.

     

    Corporate
      Trust Office:
      With
      respect to the Indenture Trustee, the designated office of the Indenture Trustee
      in the State of California at which at any particular time its corporate trust
      business with respect to this Agreement is administered, which office at the
      date of the execution of this Agreement is located at 1761 East St. Andrew
      Place, Santa Ana, California 92705, Attn: Trust Administration-AA0601, and
      which
      is the address to which notices to and correspondence with the Indenture Trustee
      should be directed, or at such other address as the Indenture Trustee may
      designate from time to time by notice to the Holders, the Issuer and the Trust
      Administrator or the principal corporate trust office of any successor Indenture
      Trustee. With respect to the Note Registrar and presentment of Notes for
      registration of transfer, exchange or final payment, Wells Fargo Bank, National
      Association, Sixth Street and Marquette Avenue, Minneapolis, Minnesota 55479,
      Attention: Corporate Trust, Aames 2006-1, and for all other purposes, P.O.
      Box
      98, Columbia, Maryland 21046 (or for overnight deliveries, 9062 Old Annapolis
      Road, Columbia, Maryland 21045), Attention: Corporate Trust, Aames
      2006-1.

     

    Current
      Interest:
      As
      defined
      in the
      Transfer and Servicing Agreement.

     

    Default:
      Any
      occurrence that is, or with notice or the lapse of time or both would become,
      an
      Event of Default.

     

    Definitive
      Notes:
      The
      meaning specified in Section 2.10.

     

    Depository
      Institution:
      Any
      depository institution or trust company, including the Indenture Trustee, that
      (a) is incorporated under the laws of the United States of America or any State
      thereof, (b) is subject to supervision and examination by federal or state
      banking authorities and (c) has outstanding unsecured commercial paper or other
      short-term unsecured debt obligations that are rated in the highest rating
      category by each Rating Agency, or is otherwise acceptable to each Rating
      Agency.

     

    Disregarded
      Entity:
      An
      entity that is both (a) solely owned by a REIT or Qualified REIT Subsidiary
      and
      (b) disregarded as an entity separate from its owner within the meaning of
      Section 301.7701-2(c)(2) of the Treasury Regulations.

     

    Eligible
      Corporation:
      A
      domestic corporation described in section 860L(a)(2) of the Code that (i) is
      not
      the obligor on any debt instrument held as part of the Trust, and (ii) is not
      related, within the meaning of section 860L(g), to any person who is an obligor
      on any debt instrument held as part of the Trust.

     

    Euroclear:
      Euroclear SA/NV, as operator of the Euroclear System.

     

    Event
      of Default:
      The
      meaning specified in Section 5.01.

     

    Exchange
      Act:
      The
      Securities Exchange Act of 1934, as amended.

     

    Executive
      Officer:
      With
      respect to any corporation or limited liability company, the Chief Executive
      Officer, Chief Operating Officer, Chief Financial Officer, President, Manager,
      Executive Vice President, any Vice President, the Secretary or the Treasurer
      of
      such entity; and with respect to any partnership, any general partner
      thereof.

     

    Global
      Securities:
      The
      meaning specified in Section 2.01(a).

     

    Grant:
      Mortgage, pledge, bargain, sell, warrant, alienate, remise, release, convey,
      assign, transfer, create, and grant a lien upon and a security interest in
      and a
      right of set-off against, deposit, set over and confirm pursuant to this
      Indenture. A Grant of the Collateral or of any other agreement or instrument
      shall include all rights, powers and options (but none of the obligations)
      of
      the granting party thereunder, including the immediate and continuing right
      to
      claim for, collect, receive and give receipt for principal and interest payments
      in respect of the Collateral and all other moneys payable thereunder, to give
      and receive notices and other communications, to make waivers or other
      agreements, to exercise all rights and options, to bring Proceedings in the
      name
      of the granting party or otherwise, and generally to do and receive anything
      that the granting party is or may be entitled to do or receive thereunder or
      with respect thereto.

     

    Holder
      or
Noteholder:
      A
      Person in whose name a Note is registered on the Note Register.

     

    Independent:
      When
      used with respect to any specified Person, that such Person (a) is in fact
      independent of the Issuer, any other obligor on the Notes, the Seller and any
      Affiliate of any of the foregoing Persons, (b) does not have any direct
      financial interest or any material indirect financial interest in the Issuer,
      any such other obligor, the Seller or any Affiliate of any of the foregoing
      Persons and (c) is not connected with the Issuer, any such other obligor, the
      Seller or any Affiliate of any of the foregoing Persons as an officer, employee,
      promoter, underwriter, trustee, partner, director or person performing similar
      functions.

     

    Independent
      Certificate:
      A
      certificate or opinion to be delivered to the Indenture Trustee under the
      circumstances described in, and otherwise complying with, the applicable
      requirements of Section 11.01, made by an Independent appraiser or other expert
      appointed by an Issuer Order, and such opinion or certificate shall state that
      the signer has read the definition of “Independent” in this Indenture and that
      the signer is Independent within the meaning thereof.

     

    Issuer:
      Aames
      Mortgage Investment Trust 2006-1, a Delaware statutory trust, or any successor
      and, for purposes of any provision contained herein and required by the TIA,
      each other obligor on the Notes.

     

    Issuer
      Order
      or
Issuer
      Request:
      A
      written order or request signed in the name of the Issuer by any one of its
      Authorized Officers and delivered to the Indenture Trustee.

     

    Non-Priority
      Class Note:
      As of
      any date of determination, any Outstanding Note other than the related Notes
      that comprise the Priority Class Notes.

     

    Note:
      Any of
      the Class A-1, Class A-2, Class A-3, Class A-4, Class M-1, Class M-2, Class
      M-3,
      Class M-4, Class M-5, Class M-6, Class M-7, Class M-8, Class M-9, Class M-10
      and
      Class M-11 Notes issued pursuant to this Indenture, substantially in the forms
      attached hereto as Exhibit A.

     

    Note
      Owner or Owner:
      With
      respect to a Book-Entry Note, the Person that is the beneficial owner of such
      Book-Entry Note, as reflected on the books of the Clearing Agency or on the
      books of a Person maintaining an account with such Clearing Agency (directly
      as
      a Clearing Agency Participant or as an indirect participant, in each case in
      accordance with the rules of such Clearing Agency), and with respect to a
      Definitive Note, the Person that is the registered owner of such Note as
      reflected in the Note Register.

     

    Note
      Register:
      The
      meaning specified in Section 2.04.

     

    Note
      Registrar:
      The
      meaning specified in Section 2.04. The initial Note Registrar shall be the
      Trust
      Administrator.

     

    Officer’s
      Certificate:
      A
      certificate signed by any Authorized Officer of the Issuer, under the
      circumstances described in, and otherwise complying with, the applicable
      requirements of Section 11.01, and delivered to the Indenture Trustee. Unless
      otherwise specified, any reference in this Indenture to an Officer’s Certificate
      shall be to an Officer’s Certificate of any Authorized Officer of the
      Issuer.

     

    Outstanding:
      As of
      the date of determination, all Notes theretofore authenticated and delivered
      under this Indenture except:

     

    (i) Notes
      theretofore cancelled by the Note Registrar or delivered to the Note Registrar
      for cancellation;

     

    (ii) Notes
      the
      payment for which money in the necessary amount has been theretofore deposited
      with the Trust Administrator or any Paying Agent in trust for the Holders of
      such Notes (provided,
      however,
      that if
      such Notes are to be redeemed, notice of such redemption has been duly given
      pursuant to this Indenture or provision for such notice has been made,
      satisfactory to the Trust Administrator); and

     

    (iii) Notes
      in
      exchange for or in lieu of which other Notes have been authenticated and
      delivered pursuant to this Indenture unless proof satisfactory to the Trust
      Administrator is presented that any such Notes are held by a protected
      purchaser;

     

    provided,
      that in
      determining whether the Holders of the requisite Outstanding Balance of the
      Notes have given any request, demand, authorization, direction, notice, consent
      or waiver hereunder or under any Operative Agreement, Notes owned by the Issuer,
      any other obligor upon the Notes, the Depositor, the Owner Trustee, the
      Indenture Trustee, the Master Servicer, any Servicer, the Trust Administrator
      or
      any Affiliate of any of the foregoing Persons shall be disregarded and deemed
      not to be Outstanding, except that, in determining whether the Indenture Trustee
      or Trust Administrator shall be protected in relying upon any such request,
      demand, authorization, direction, notice, consent or waiver, only Notes that
      the
      Indenture Trustee or Trust Administrator has actual knowledge to be so owned
      shall be so disregarded (unless such action requires the consent, waiver,
      request or demand of 100% of the Outstanding Balance represented by a particular
      Class and 100% of the Outstanding Balance represented by such Class is
      registered in the name of one or more of the foregoing entities). Notes so
      owned
      that have been pledged in good faith may be regarded as Outstanding if the
      pledgee establishes to the satisfaction of the Indenture Trustee or Trust
      Administrator the pledgee’s right so to act with respect to such Notes and that
      the pledgee is not the Issuer, any other obligor upon the Notes, the Depositor,
      the Owner Trustee, the Indenture Trustee, the Master Servicer, any Servicer,
      the
      Trust Administrator or any Affiliate of any of the foregoing
      Persons.

     

    Outstanding
      Balance:
      The
      aggregate principal amount of the Notes Outstanding as of the date of
      determination.

     

    Paying
      Agent:
      Initially, the Trust Administrator or any other Person that meets the
      eligibility standards for the Indenture Trustee specified in Section 6.11 and
      is
      authorized by the Issuer, in accordance with the provision of Section 3.03,
      to
      make payments to and distributions from the Trust Account, including payments
      of
      principal of or interest on the Notes on behalf of the Issuer.

     

    Predecessor
      Note:
      With
      respect to any particular Note, every previous Note evidencing all or a portion
      of the same debt as that evidenced by such particular Note; and, for the purpose
      of this definition, any Note authenticated and delivered under Section 2.04
      in
      lieu of a mutilated, lost, destroyed or stolen Note shall be deemed to evidence
      the same debt as the mutilated, lost, destroyed or stolen Note.

     

    Priority
      Class Notes:
      Until
      the Class Principal Amounts of the Senior Notes are reduced to zero and all
      sums
      payable to the Holders of the Senior Notes have been paid in full, the Senior
      Notes; when the Class Principal Amounts of the Senior Notes have been reduced
      to
      zero and all amounts payable to the Holders of the Senior Notes have been paid
      in full, the Class M-1 Notes; when the Class Principal Amounts of the Senior
      Notes and the Class M-1 Notes have been reduced to zero and all sums payable
      to
      the Holders of such Classes have been paid in full, the Class M-2 Notes; when
      the Class Principal Amounts of the Senior Notes, the Class M-1 Notes and the
      Class M-2 Notes have been reduced to zero and all sums payable to the Holders
      of
      such Classes have been paid in full, the Class M-3 Notes; when the Class
      Principal Amounts of the Senior Notes, the Class M-1 Notes, the Class M-2 Notes
      and the Class M-3 Notes have been reduced to zero and all sums payable to the
      Holders of such Classes have been paid in full, the Class M-4 Notes; when the
      Class Principal Amounts of the Senior Notes, the Class M-1 Notes, the Class
      M-2
      Notes, the Class M-3 Notes and the Class M-4 Notes have been reduced to zero
      and
      all sums payable to the Holders of such Classes have been paid in full, the
      Class M-5 Notes; when the Class Principal Amounts of the Senior Notes, the
      Class
      M-1 Notes, the Class M-2 Notes, the Class M-3 Notes, the Class M-4 Notes and
      the
      Class M-5 Notes have been reduced to zero and all sums payable to the Holders
      of
      such Classes have been paid in full, the Class M-6 Notes; when the Class
      Principal Amounts of the Senior Notes, the Class M-1 Notes, the Class M-2 Notes,
      the Class M-3 Notes, the Class M-4 Notes, the Class M-5 Notes and the Class
      M-6
      Notes have been reduced to zero and all sums payable to the Holders of such
      Classes have been paid in full, the Class M-7 Notes; when the Class Principal
      Amounts of the Senior Notes, the Class M-1 Notes, the Class M-2 Notes, the
      Class
      M-3 Notes, the Class M-4 Notes, the Class M-5 Notes, the Class M-6 Notes and
      the
      Class M-7 Notes have been reduced to zero and all sums payable to the Holders
      of
      such Classes have been paid in full, the Class M-8 Notes; when the Class
      Principal Amounts of the Senior Notes, the Class M-1 Notes, the Class M-2 Notes,
      the Class M-3 Notes, the Class M-4 Notes, the Class M-5 Notes, the Class M-6
      Notes, the Class M-7 Notes and the Class M-8 Notes have been reduced to zero
      and
      all sums payable to the Holders of such Classes have been paid in full, the
      Class M-9 Notes; when the Class Principal Amounts of the Senior Notes, the
      Class
      M-1 Notes, the Class M-2 Notes, the Class M-3 Notes, the Class M-4 Notes, the
      Class M-5 Notes, the Class M-6 Notes, the Class M-7 Notes, the Class M-8 Notes
      and the Class M-9 Notes have been reduced to zero and all sums payable to the
      Holders of such Classes have been paid in full, the Class M-10 Notes; when
      the
      Class Principal Amounts of the Senior Notes, the Class M-1 Notes, the Class
      M-2
      Notes, the Class M-3 Notes, the Class M-4 Notes, the Class M-5 Notes, the Class
      M-6 Notes, the Class M-7 Notes, the Class M-8 Notes, the Class M-9 Notes and
      the
      Class M-10 Notes have been reduced to zero and all sums payable to the Holders
      of such Classes have been paid in full, the Class M-11 Notes.

     

    Proceeding:
      Any
      suit in equity, action at law or other judicial or administrative
      proceeding.

     

    Prospective
      Owner:
      Each
      prospective purchaser and any subsequent transferee of a Note.

     

    Rating
      Agency Condition:
      With
      respect to any action to which the Rating Agency Condition applies, that each
      Rating Agency shall have been given 10 days (or such shorter period as is
      acceptable to each Rating Agency) prior notice thereof and that each Rating
      Agency shall have notified the Depositor, the Issuer and the Indenture Trustee
      in writing that such action will not result in a reduction or withdrawal of
      the
      then current rating of the rated Notes.

     

    Redemption
      Date:
      In the
      case of a redemption of the Notes pursuant to Section 10.01, the Payment Date
      specified by the Trust Administrator in the notice delivered pursuant to Section
      10.02.

     

    Responsible
      Officer:
      When
      used with respect to the Indenture Trustee, any vice president, any assistant
      vice president, any associate, or any other officer of the Indenture Trustee
      customarily performing functions similar to those performed by any of the above
      designated officers who at such time shall be officers to whom, with respect
      to
      a particular matter, such matter is referred because of such officer’s knowledge
      of and familiarity with the particular subject and who shall have direct
      responsibility for the administration of this Agreement. With respect to the
      Trust Administrator, any officer in the corporate trust department or similar
      group of the Trust Administrator with direct responsibility for the
      administration of this Agreement and also, with respect to a particular
      corporate trust matter, any other officer to whom such matter is referred
      because of his or her knowledge of and familiarity with the particular
      subject.

     

    Retained
      Notes:
      Means
      those certain classes, or portions of certain classes, of Notes which, at the
      time of their issuance, Aames Investment Corporation or one of its qualified
      REIT subsidiaries or a Disregarded Entity acquires beneficial ownership
      thereof.

     

    State:
      Any one
      of the 50 States of the United States of America or the District of
      Columbia.

     

    Transfer
      and Servicing Agreement:
      The
      Transfer and Servicing Agreement dated as of April 1, 2006, among the Issuer,
      Financial Asset Securities Corp., as depositor, Wells Fargo Bank, N.A., as
      master servicer and trust administrator, the Indenture Trustee, Aames Investment
      Corporation, as seller and Aames Funding Corporation, as servicer, as such
      may
      be amended or supplemented from time to time.

     

    Trust:
      The
      Delaware statutory trust known as “Aames Mortgage Investment Trust
      2006-1.”

     

    Trust
      Indenture Act or TIA:
      The
      Trust Indenture Act of 1939 as in force on the date hereof, unless otherwise
      specifically provided.

     

    (b)  Except
      as
      otherwise specified herein or as the context may otherwise require, capitalized
      terms used but not otherwise defined herein shall have the meanings assigned
      to
      them in the Transfer and Servicing Agreement.

     

    Section
      1.02  Incorporation
      by Reference of Trust Indenture Act.
      Whenever this Indenture refers to a provision of the TIA, the provision is
      incorporasted by reference in and made a part of this Indenture. The following
      TIA terms used in this Indenture have the following meanings:

     

    “indenture
      securities” means the Notes.

     

    “indenture
      security holder” means a Noteholder.

     

    “indenture
      to be qualified” means this Indenture.

     

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

     

    “obligor”
      on the indenture securities means the Issuer and any other obligor on the
      indenture securities.

     

    (b) All
      other
      TIA terms used in this Indenture that are defined in the TIA, defined by TIA
      reference to another statute or defined by rule of the Securities and Exchange
      Commission have the respective meanings assigned to them by such
      definitions.

     

    Section
      1.03  Rules
      of Construction.
      Unless
      the context otherwise requires:

     

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

     

    (ii)  an
      accounting term not otherwise defined has the meaning assigned to it in
      accordance with generally accepted accounting principles as in effect from
      time
      to time;

     

    (iii)  “or”
is
      not exclusive;

     

    (iv)  “including”
      means including without limitation;

     

    (v)  words
      in
      the singular include the plural and words in the plural include the
      singular;

     

    (vi)  any
      agreement, instrument or statute defined or referred to herein or in any
      instrument or certificate delivered in connection herewith means such agreement,
      instrument or statute as from time to time amended, modified or supplemented
      and
      includes (in the case of agreements or instruments) references to all
      attachments thereto and instruments incorporated therein; references to a Person
      are also to its permitted successors and assigns;

     

    (vii)  terms
      defined in the UCC and not otherwise defined herein shall have the meaning
      assigned to them in the UCC; and

     

    (viii)  to
“U.S.
      dollars”, “dollars”, or the sign “$” shall be construed as references to United
      States dollars which are freely transferable by residents and non-residents
      of
      the United States of America and convertible by such persons into any other
      freely convertible currency unless such transferability or convertibility is
      restricted by any law or regulation of general application in which event
      references to “U.S. dollars”, “dollars”, or the sign “$” shall be construed as
      references to such coin or currency of the United States of America as at the
      time of payment shall be legal tender for the payment of public and private
      debts in the United States of America, and “cents” shall be construed
      accordingly.

     

    ARTICLE
      II

     

    THE
      NOTES

     

    Section
      2.01  Form.
      (a)
      The
      Notes shall be designated as the “Aames Mortgage Investment Trust
      2006-1 Mortgage
      Backed Notes” The Notes, together with the Trust Administrator’s certificate of
      authentication, shall be in substantially the forms set forth in Exhibit A
      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, consistently herewith, be determined by the officers executing such
      Notes, as evidenced by their execution of the Notes. Any portion of the text
      of
      any Note may be set forth on the reverse thereof, with an appropriate reference
      thereto on the face of the Note.

     

    The
      Definitive Notes and the global certificates (“Global Securities”) representing
      the Book-Entry Notes shall be typewritten, printed, lithographed or engraved
      or
      produced by any combination of these methods (with or without steel engraved
      borders), all as determined by the officers executing such Notes, as evidenced
      by their execution of such Notes.

     

    Each
      Note
      shall be dated the date of its authentication. The terms of the Notes set forth
      in Exhibit A are part of the terms of this Indenture.

     

    Section
      2.02  Execution,
      Authentication and Delivery.
      The
      Notes shall be executed on behalf of the Issuer by any Authorized Officer of
      the
      Owner Trustee. The signature of any such Authorized Officer on the Notes may
      be
      manual or facsimile.

     

    Notes
      bearing the manual or facsimile signature of individuals who were at any time
      Authorized Officers of the Owner Trustee or the Trust Administrator shall bind
      the Issuer, notwithstanding that such individuals or any of them have ceased
      to
      hold such offices prior to the authentication and delivery of such Notes or
      did
      not hold such offices at the date of such Notes.

     

    The
      Trust
      Administrator shall, upon Issuer Order, authenticate and deliver the Notes
      for
      original issue in the aggregate principal amounts with respect to each Class
      as
      specified below:

     

    
      	
              Class

               

            	 	
              Class
                Principal Amount

               

            	 
	
              Class
                A-1

            	 	
              $

            	
              244,348,000

            	 
	
              Class
                A-2

            	 	
              $

            	
              62,902,000

            	 
	
              Class
                A-3

            	 	
              $

            	
              127,232,000

            	 
	
              Class
                A-4

            	 	
              $

            	
              22,641,000

            	 
	
              Class
                M-1

            	 	
              $

            	
              44,948,000

            	 
	
              Class
                M-2

            	 	
              $

            	
              13,148,000

            	 
	
              Class
                M-3

            	 	
              $

            	
              11,619,000

            	 
	
              Class
                M-4

            	 	
              $

            	
              11,313,000

            	 
	
              Class
                M-5

            	 	
              $

            	
              9,785,000

            	 
	
              Class
                M-6

            	 	
              $

            	
              12,231,000

            	 
	
              Class
                M-7

            	 	
              $

            	
              15,594,000

            	 
	
              Class
                M-8

            	 	
              $

            	
              6,115,000

            	 
	
              Class
                M-9

            	 	
              $

            	
              5,504,000

            	 
	
              Class
                M-10

            	 	
              $

            	
              3,058,000

            	 
	
              Class
                M-11

            	 	
              $

            	
              6,115,000

            	 

    

    ___________________________

     

    The
      aggregate principal amounts of such Classes of Notes outstanding at any time
      may
      not exceed such respective amounts.

     

    The
      Notes
      will be issued in minimum denominations of $25,000 and integral multiples of
      $1
      in excess thereof, provided, that the initial sale of any Notes shall be in
      increments of no less than $100,000.

     

    No
      Note
      shall be entitled to any benefit under this Indenture or be valid or obligatory
      for any purpose, unless there appears on such Note a certificate of
      authentication substantially in the form provided for herein executed by the
      Trust Administrator by the manual signature of one of its authorized
      signatories, and such certificate upon any Note shall be conclusive evidence,
      and the only evidence, that such Note has been duly authenticated and delivered
      hereunder.

     

    Section
      2.03  Limitation
      on Transfer of Notes.
      (a)
      No
      transfer of a Note in the form of a Definitive Note shall be made unless the
      Note Registrar shall have received a representation from the transferee of
      such
      Note, acceptable to and in form and substance satisfactory to the Note Registrar
      and the Depositor (such requirement is satisfied only by the Note Registrar’s
      receipt of a transfer affidavit from the transferee substantially in the form
      of
      Exhibit B hereto), to the effect that such transferee (i) is not acquiring
      such
      note for, or with the assets of, an employee benefit plan or other retirement
      arrangement that is subject to Section 406 of ERISA or to Section 4975 of the
      Code or to any substantially similar law (“Similar Law”), or any entity deemed
      to hold the plan assets of the foregoing (collectively, “Benefit Plans”), or
      (ii) its acquisition and holding of such Notes for, or with the assets of,
      a
      Benefit Plan will not result in a non-exempt prohibited transaction under
      Section 406 of ERISA or Section 4975 of the Code which is not covered under
      Prohibited Transaction Class Exemption (“PTCE”) 84-14, PTCE 90-1, PTCE 91-38,
      PTCE 95-60, PTCE 96-23 or some other applicable exemption, and will not result
      in a non-exempt violation of any Similar Law.

     

    In
      the
      case of a Note that is a Book-Entry Note, for purposes of clauses (i) or (ii)
      of
      the preceding paragraph, such representations shall be deemed to have been
      made
      to the Note Registrar by the transferee’s acceptance of such Note that is a
      Book-Entry Note (or the acceptance by a Note Holder of the beneficial interest
      in such Note).

     

    None
      of
      the Indenture Trustee, the Trust Administrator, the Note Registrar or the
      Depositor shall have any liability to any Person for any registration of
      transfer of any Note that is in fact not permitted by this Section 2.03(a)
      or
      for the Trust Administrator or the Paying Agent making any payments due on
      such
      Note to the Holder thereof or taking any other action with respect to such
      Holder under the provisions of this Agreement so long as the transfer was
      registered by the Note Registrar in accordance with the foregoing requirements.
      In addition, none of the Indenture Trustee, the Trust Administrator, the Note
      Registrar or the Depositor shall be required to monitor, determine or inquire
      as
      to compliance with the transfer restrictions with respect to any Note in the
      form of a Book-Entry Note, and none of the Indenture Trustee, the Trust
      Administrator, the Note Registrar or the Depositor shall have any liability
      for
      transfers of Book-Entry Notes or any interests therein made in violation of
      the
      restrictions on transfer described in the Prospectus and this
      Agreement.

     

    In
      the
      event that a Note is transferred to a Person that does not meet the requirements
      of this Section 2.03, such transfer shall be of no force and effect, shall
      be
      void ab
      initio,
      and
      shall not operate to transfer any rights to such Person, notwithstanding any
      instructions to the contrary to the Issuer, the Indenture Trustee or any
      intermediary; and the Trust Administrator shall not make any payments on such
      Note for as long as such Person is the Holder of such Note.

     

    Each
      Note
      shall contain a legend substantially similar to the applicable legend provided
      in Exhibit A hereto stating that transfer of such Notes is subject to certain
      restrictions as set forth herein.

     

    (b)  Any
      purported transfer of a Note (or any interest therein) not in accordance with
      this Section 2.03 shall be null and void and shall not be given effect for
      any
      purpose hereunder.

     

    (c)  The
      Trust
      Administrator will not have the ability to monitor transfers of the Notes while
      they are in book-entry form and will have no liability for transfers of
      Book-Entry Notes in violation of any of the transfer restrictions described
      in
      this Section 2.03.

     

    Section
      2.04  Registration;
      Registration of Transfer and Exchange.
      The
      Issuer shall cause the Note Registrar to keep a register (the “Note Register”)
      in which, subject to such reasonable regulations as it may prescribe and the
      restrictions on transfers of the Notes set forth herein, the Issuer shall
      provide for the registration of Notes and the registration of transfers of
      Notes. The Trust Administrator initially shall be the “Note Registrar” for the
      purpose of registering Notes and transfers of Notes as herein provided. Upon
      any
      resignation of any Note Registrar, the Issuer shall promptly appoint a successor
      or, if it elects not to make such an appointment, assume the duties of Note
      Registrar.

     

    If
      a
      Person other than the Trust Administrator is appointed by the Issuer as Note
      Registrar, the Issuer will give the Indenture Trustee and the Trust
      Administrator prompt written notice of the appointment of such Note Registrar
      and of the location, and any change in the location, of the Note Register,
      and
      the Indenture Trustee shall have the right to inspect the Note Register at
      all
      reasonable times and to obtain copies thereof, and the Indenture Trustee shall
      have the right to rely upon a certificate executed on behalf of the Note
      Registrar by an Executive Officer thereof as to the names and addresses of
      the
      Holders of the Notes and the principal amounts and number of such
      Notes.

     

    Subject
      to Section 2.03, upon surrender for registration of transfer of any Note at
      the
      office or agency of the Issuer to be maintained as provided in Section 3.02,
      the
      Issuer shall execute, and the Note Registrar shall authenticate and the
      Noteholder shall be entitled to obtain from the Note Registrar, in the name
      of
      the designated transferee or transferees, one or more new Notes of the same
      Class in any authorized denominations, of a like aggregate principal
      amount.

     

    At
      the
      option of the Holder, Notes may be exchanged for other Notes of the same Class
      in any authorized denominations, of a like aggregate principal amount, upon
      surrender of the Notes to be exchanged at such office or agency. Whenever any
      Notes are so surrendered for exchange, the Issuer shall execute, and the Note
      Registrar shall authenticate and the Noteholder shall be entitled to obtain
      from
      the Trust Administrator, the Notes which the Noteholder making the exchange
      is
      entitled to receive.

     

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

     

    Every
      Note presented or surrendered for registration of transfer or exchange shall
      be
      duly endorsed by, or be accompanied by a written instrument of transfer in
      form
      satisfactory to the Note Registrar duly executed by, the Holder thereof or
      such
      Holder’s attorney duly authorized in writing, with such signature guaranteed by
      an “eligible guarantor institution” meeting the requirements of the Note
      Registrar, which requirements include membership or participation in the
      Securities Transfer Agent’s Medallion Program (“STAMP”) or such other “signature
      guarantee program” as may be determined by the Note Registrar in addition to, or
      in substitution for, STAMP.

     

    No
      service charge shall be made to a Holder for any registration of transfer or
      exchange of Notes, but the Issuer or the Note Registrar 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 Notes, other
      than
      exchanges pursuant to Section 2.05 not involving any transfer.

     

    The
      preceding provisions of this Section notwithstanding, the Issuer shall not
      be
      required to make and the Note Registrar need not register transfers or exchanges
      of Notes selected for redemption or of any Note for a period of 15 days
      preceding the due date for any payment with respect to such Note.

     

    Section
      2.05  Mutilated,
      Destroyed, Lost or Stolen Notes.
      If (i)
      any mutilated Note is surrendered to the Trust Administrator, or the Trust
      Administrator receives evidence to its satisfaction of the destruction, loss
      or
      theft of any Note, and (ii) there is delivered to the Trust Administrator such
      security or indemnity as may be required by it to hold the Issuer and the Trust
      Administrator harmless, then, in the absence of actual notice to the Issuer,
      the
      Note Registrar or the Trust Administrator that such Note has been acquired
      by a
      protected purchaser, and upon certification provided by the Holder of such
      Note
      that the requirements of Section 8-405 of the Relevant UCC are met, the Issuer
      shall execute, and upon its request the Note Registrar shall authenticate and
      deliver, in exchange for or in lieu of any such mutilated, destroyed, lost
      or
      stolen Note, a replacement Note; provided,
      however,
      that if
      any such destroyed, lost or stolen Note, but not a mutilated Note, shall have
      become or within seven days shall be due and payable, or shall have been called
      for redemption, instead of issuing a replacement Note, the Issuer may pay such
      destroyed, lost or stolen Note when so due or payable or upon the Redemption
      Date without surrender thereof. If, after the delivery of such replacement
      Note
      or payment of a destroyed, lost or stolen Note pursuant to the proviso to the
      preceding sentence, a bona fide purchaser of the original Note in lieu of which
      such replacement Note was issued presents for payment such original Note, the
      Issuer and the Note Registrar shall be entitled to recover such replacement
      Note
      (or such payment) from the Person to whom it was delivered or any Person taking
      such replacement Note from such Person to whom such replacement Note was
      delivered or any assignee of such Person, except a protected purchaser, and
      shall be entitled to recover upon the security or indemnity provided therefor
      to
      the extent of any loss, damage, cost or expense incurred by the Issuer or the
      Trust Administrator in connection therewith.

     

    Upon
      the
      issuance of any replacement Note under this Section, the Issuer, the Trust
      Administrator or the Note Registrar may require the payment by the Holder of
      such Note of a sum sufficient to cover any tax or other governmental charge
      that
      may be imposed in relation thereto and any other reasonable expenses (including
      the fees and expenses of the Trust Administrator) connected
      therewith.

     

    Every
      replacement Note issued pursuant to this Section in replacement of any
      mutilated, destroyed, lost or stolen Note shall constitute an original
      additional contractual obligation of the Issuer, whether or not the mutilated,
      destroyed, lost or stolen Note 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 Notes 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 Notes.

     

    Section
      2.06  Persons
      Deemed Owners.
      Prior
      to due presentment for registration of transfer of any Note, the Issuer, the
      Trust Administrator, the Indenture Trustee and any agent of the Issuer, the
      Trust Administrator or the Indenture Trustee may treat the Person in whose
      name
      any Note is registered (as of the day of determination) as the owner of such
      Note for the purpose of receiving payments of principal of and interest, if
      any,
      on such Note and for all other purposes whatsoever, whether or not such Note
      be
      overdue, and none of the Issuer, the Trust Administrator, the Indenture Trustee
      or any agent of the Issuer, the Trust Administrator or the Indenture Trustee
      shall be affected by notice to the contrary.

     

    Section
      2.07  Payment
      of Principal and Interest.
      (a)
      Each
      Class of Notes shall accrue interest at the applicable Note Interest Rate as
      set
      forth in the Transfer and Servicing Agreement, and such interest shall be
      payable on each Payment Date, subject to Section 3.01. Interest shall be
      computed on each Class of Notes on the basis of a 360-day year and the actual
      number of days elapsed in each Accrual Period. With respect to each outstanding
      Class of Notes, the Trust Administrator shall determine LIBOR for each
      applicable Accrual Period on the second LIBOR Business Day prior thereto, in
      accordance with the provisions of the Transfer and Servicing Agreement. All
      interest payments on each Class of Notes shall be made in the order provided
      for
      in Section 6.02 of the Transfer and Servicing Agreement. Any installment of
      interest or principal payable on any Note shall be paid on the applicable
      Payment Date to the Person in whose name such Note (or one or more Predecessor
      Notes) is registered on the Record Date by check mailed first-class postage
      prepaid to such Person’s address as it appears on the Note Register on such
      Record Date or, upon written request made to the Note Registrar and the Paying
      Agent at least five Business Days prior to the related Record Date, by the
      Holder of a Note having an initial Note Principal Amount of not less than
      $2,500,000 by wire transfer in immediately available funds to an account
      specified in the request and at the expense of such Noteholder, except that,
      unless Definitive Notes have been issued pursuant to Section 2.12, with respect
      to Notes registered on the Record Date in the name of the nominee of the
      Clearing Agency (initially, such nominee to be Cede & Co.), payment will be
      made by wire transfer in immediately available funds to the account designated
      by such nominee, except for the final installment of principal payable with
      respect to such Note on a Payment Date or on the applicable Maturity Date for
      such Class of Notes (and except for the Termination Price for any Note called
      for redemption pursuant to Section 10.01), which shall be payable as provided
      below. The funds represented by any such checks returned undelivered shall
      be
      held in accordance with Section 3.03.

     

    (b)  The
      principal of the Notes shall be payable in installments on each Payment Date
      as
      provided herein and in the Notes, subject to Section 3.01. Notwithstanding
      the
      foregoing, the entire unpaid principal amount of the Notes shall be due and
      payable, if not previously paid, on the date on which an Event of Default shall
      have occurred and be continuing, or if the Indenture Trustee or Holders of
      the
      Notes representing not less than a majority of the Outstanding Balance of the
      Priority Class Notes have declared the Notes to be immediately due and payable
      in the manner provided in Section 5.02. All principal payments on a Class of
      Notes shall be made in accordance with Section 6.02 of the Transfer and
      Servicing Agreement. The Trust Administrator shall notify the Person in whose
      name a Note is registered at the close of business on the Record Date preceding
      the Payment Date on which the Issuer expects that the final installment of
      principal of and interest on such Note will be paid. Such notice shall be mailed
      or transmitted by facsimile no later than five Business Days prior to such
      final
      Payment Date and shall specify that such final installment will be payable
      only
      upon presentation and surrender of such Note and shall specify the place where
      such Note may be presented and surrendered for payment of such installment.
      Notices in connection with redemptions of Notes shall be mailed to Noteholders
      as provided in Section 10.02.

     

    Section
      2.08  Cancellation.
      All
      Notes surrendered for payment, registration of transfer, exchange or redemption
      shall, if surrendered to any Person other than the Trust Administrator, be
      delivered to the Trust Administrator and shall be promptly cancelled by the
      Trust Administrator. The Issuer may at any time deliver to the Note Registrar
      for cancellation any Notes previously authenticated and delivered hereunder
      which the Issuer may have acquired in any manner whatsoever, and all Notes
      so
      delivered shall be promptly cancelled by the Trust Administrator. No Notes
      shall
      be authenticated in lieu of or in exchange for any Notes cancelled as provided
      in this Section, except as expressly permitted by this Indenture. All cancelled
      Notes may be held or disposed of by the Note Registrar in accordance with its
      standard retention or disposal policy as in effect at the time unless the Issuer
      shall direct by an Issuer Order that they be destroyed or returned to it;
      provided, that such Issuer Order is timely and the Notes have not been
      previously disposed of by the Trust Administrator.

     

    Section
      2.09  Release
      of Collateral.
      (a)
      Except
      as otherwise provided in subsections (b) and (c) of this Section and the terms
      of the Operative Agreements, the Indenture Trustee shall release property from
      the lien of this Indenture only upon receipt by it of an Issuer Request
      accompanied by (i) an Officer’s Certificate, (ii) an Opinion of Counsel, (iii)
      certificates in accordance with TIA Sections 314(c) and (d)(1), and (iv)(A)
      Independent Certificates in accordance with TIA Sections 314(c) and 314(d)(1)
      or
      (B) an Opinion of Counsel in lieu of such Independent Certificates to the effect
      that the TIA does not require any such Independent Certificates; provided that
      no such Independent Certificates or Opinion of Counsel in lieu of such
      Independent Certificates shall be necessary in respect of property released
      from
      the lien of the Indenture in accordance with the provisions hereof if such
      property consists solely of cash.

     

    (b)  The
      Servicer (or if the Servicer does not do so, the Master Servicer), on behalf
      of
      the Issuer, shall be entitled to obtain a release from the lien of this
      Indenture for any Mortgage Loan and the Mortgaged Property at any time (i)
      after
      a payment by the Seller or the Issuer of the Purchase Price of the Mortgage
      Loan, (ii) after a Qualifying Substitute Mortgage Loan is substituted for such
      Mortgage Loan and payment of the Substitution Amount, if any, (iii) after
      liquidation of the Mortgage Loan in accordance with the Transfer and Servicing
      Agreement and the deposit of all Liquidation Proceeds and Insurance Proceeds
      in
      the Collection Account, (iv) upon the termination of a Mortgage Loan (due to,
      among other causes, a prepayment in full of the Mortgage Loan and sale or other
      disposition of the related Mortgaged Property), or (v) as contemplated by
      Section 9.02 of the Transfer and Servicing Agreement.

     

    (c)  The
      Indenture Trustee shall, if requested by the Servicer, temporarily release
      or
      cause the Custodian temporarily to release to such party the Mortgage File
      pursuant to the provisions of Section 5.15 of the Transfer and Servicing
      Agreement and Section 5 of the Custodial Agreement.

     

    Section
      2.10  Book-Entry
      Notes.
      Each
      Class of Notes will be issued in the form of typewritten Notes or Global
      Securities representing the Book-Entry Notes, to be delivered to, or to the
      Trust Administrator as custodian for, the initial Clearing Agency, by, or on
      behalf of, the Issuer. The Book-Entry Notes shall be registered initially on
      the
      Note Register in the name of Cede & Co., the nominee of the initial Clearing
      Agency, and no Owner thereof will receive a Definitive Note representing such
      Note Owner’s interest in such Note, except as provided in Section 2.12. Unless
      and until definitive, fully registered Notes (the “Definitive Notes”) have been
      issued to such Note Owners pursuant to Section 2.12:

     

    (i)  the
      provisions of this Section shall be in full force and effect;

     

    (ii)  the
      Note
      Registrar, the Indenture Trustee and the Trust Administrator shall be entitled
      to deal with the Clearing Agency for all purposes of this Indenture (including
      the payment of principal of and interest on the Notes and the giving of
      instructions or directions hereunder) as the sole holder of the Notes, and
      shall
      have no obligation to the Note Owners;

     

    (iii)  to
      the
      extent that the provisions of this Section conflict with any other provisions
      of
      this Indenture, the provisions of this Section shall control;

     

    (iv)  the
      rights of Note Owners shall be exercised only through the Clearing Agency and
      shall be limited to those established by law and agreements between such Note
      Owners and the Clearing Agency and/or the Clearing Agency Participants pursuant
      to the Note Depository Agreement. Unless and until Definitive Notes are issued
      pursuant to Section 2.12, the Note Registrar shall not register any transfer
      of
      a beneficial interest in a Book-Entry Note; and the initial Clearing Agency
      will
      make book-entry transfers among the Clearing Agency Participants and receive
      and
      transmit payments of principal of and interest on the Notes to such Clearing
      Agency Participants; and

     

    (v)  whenever
      this Indenture requires or permits actions to be taken based upon instructions
      or directions of Holders of Notes evidencing a specified percentage of the
      Outstanding Balance of the Notes (or the Priority Class Notes), the Clearing
      Agency shall be deemed to represent such percentage only to the extent that
      it
      has received instructions to such effect from Note Owners and/or Clearing Agency
      Participants owning or representing, respectively, such required percentage
      of
      the beneficial interest in the Notes and has delivered such instructions to
      the
      Indenture Trustee or the Trust Administrator, as the case may be.

     

    Section
      2.11  Notices
      to Clearing Agency.
      Whenever a notice or other communication to the Noteholders is required under
      this Indenture, unless and until Definitive Notes shall have been issued to
      such
      Note Owners pursuant to Section 2.12, the Trust Administrator shall give all
      such notices and communications specified herein to be given to Holders of
      the
      Notes to the Clearing Agency, and shall have no obligation to such Note
      Owners.

     

    Section
      2.12  Definitive
      Notes.
      If (i)
      the Clearing Agency is no longer willing or able to properly discharge its
      responsibilities with respect to the Book-Entry Notes and the Depositor is
      unable to locate a qualified successor or (ii) after the occurrence of an Event
      of Default hereunder, Note Owners of the Book-Entry Notes representing
      beneficial interests aggregating not less than 50% of the Outstanding Balance
      of
      the Book-Entry Notes advise the Clearing Agency and the Trust Administrator
      in
      writing that the continuation of a book-entry system through the Clearing Agency
      is no longer in the best interests of such Note Owners, then the Trust
      Administrator shall direct the Clearing Agency to notify all Note Owners and
      the
      Note Registrar of the occurrence of any such event and of the availability
      of
      Definitive Notes to Note Owners in place of their Book-Entry Notes. Upon
      surrender to the Note Registrar of the typewritten Notes representing the
      Book-Entry Notes by the Clearing Agency, accompanied by registration
      instructions, the Issuer shall execute and the Note Registrar shall authenticate
      the Definitive Notes in accordance with the instructions of the Clearing Agency.
      None of the Issuer, the Note Registrar, Trust Administrator or the Indenture
      Trustee shall be liable for any delay in delivery of such instructions and
      may
      conclusively rely on, and shall be protected in relying on, such instructions.
      Upon the issuance of Definitive Notes, the Indenture Trustee and the Trust
      Administrator shall recognize the Holders of the Definitive Notes as
      Noteholders.

     

    Section
      2.13  Tax
      Treatment.
      The
      Issuer has entered into this Indenture, and the Notes will be issued, with
      the
      intention that, for federal, state and local income, single business and
      franchise tax purposes, the Notes (other than the Retained Notes) will qualify
      as indebtedness of the Issuer secured by the Collateral. The Issuer, by entering
      into this Indenture, and each Noteholder, by its acceptance of a Note (and
      each
      Note Owner by its acceptance of an interest in the applicable Book-Entry Note),
      agree to treat the Notes for federal, state and local income, single business
      and franchise tax purposes as indebtedness of the Issuer.

     

    ARTICLE
      III

     

    COVENANTS

     

    Section
      3.01  Payment
      of Principal and Interest.
      The
      Issuer will duly and punctually pay (or will cause to be duly and punctually
      paid) the principal of and interest on the Notes in accordance with the terms
      of
      the Notes and this Indenture. Amounts properly withheld under the Code by any
      Person from a payment to any Noteholder of interest and/or principal shall
      be
      considered as having been paid by the Issuer to such Noteholder for all purposes
      of this Indenture.

     

    The
      Notes
      shall be non-recourse obligations of the Issuer and shall be limited in right
      of
      payment to amounts available from the Collateral as provided in this Indenture.
      The Issuer shall not otherwise be liable for payments of the Notes, and none
      of
      the owners, agents, officers, directors, employees, or successors or assigns
      of
      the Issuer shall be personally liable for any amounts payable, or performance
      due, under the Notes or this Indenture. If any other provision of this Indenture
      shall be deemed to conflict with the provisions of this Section 3.01, the
      provisions of this Section 3.01 shall control.

     

    Section
      3.02  Maintenance
      of Office or Agency.
      The
      Note Registrar on behalf of the Issuer will maintain an office or agency where
      Notes may be surrendered for registration of transfer or exchange, and where
      notices and demands to or upon the Issuer in respect of the Notes and this
      Indenture may be served.

     

    Section
      3.03  Money
      for Payments to be Held in Trust.
      As
      provided in Section 8.02, all payments of amounts due and payable with respect
      to any Notes that are to be made from amounts withdrawn from the Collection
      Account pursuant to Article VI of the Transfer and Servicing Agreement shall
      be
      made on behalf of the Issuer by the Trust Administrator or by another Paying
      Agent, and no amounts so withdrawn from the such account for payments of Notes
      shall be paid over to the Issuer except as provided in this
      Section.

     

    On
      or
      before the Business Day preceding each Payment Date, the Issuer shall deposit
      or
      cause to be deposited in the Collection Account an aggregate sum sufficient
      to
      pay the amounts then becoming due under the Notes, such sum to be held in trust
      for the benefit of the Persons entitled thereto, and (unless the Paying Agent
      is
      the Trust Administrator) shall promptly notify the Trust Administrator of its
      action or failure so to act.

     

    The
      Trust
      Administrator is hereby appointed the initial Paying Agent. Any successor Paying
      Agent shall be appointed by Issuer Order with written notice thereof to the
      Indenture Trustee and the Trust Administrator. Any Paying Agent appointed by
      the
      Issuer shall be a Person that would be eligible to be Trust Administrator
      hereunder as provided in Section 6.11. The Issuer shall not appoint any Paying
      Agent (other than the Trust Administrator) which is not, at the time of such
      appointment, a Depository Institution.

     

    The
      Issuer shall cause each Paying Agent other than the Trust Administrator, as
      initial Paying Agent, to execute and deliver to the Indenture Trustee and the
      Trust Administrator an instrument in which such Paying Agent shall agree with
      the Indenture Trustee (and if the Trust Administrator acts as Paying Agent,
      it
      hereby so agrees), subject to the provisions of this Section, that such Paying
      Agent will:

     

    (i)  hold
      all
      sums held by it for the payment of amounts due with respect to the Notes 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 and in the
      Transfer and Servicing Agreement and pay such sums to such Persons as herein
      provided;

     

    (ii)  give
      the
      Indenture Trustee notice of any default by the Issuer of which the Paying Agent
      has actual knowledge in the making of any payment required to be made with
      respect to the Notes;

     

    (iii)  at
      any
      time during the continuance of any such default, upon the written request of
      the
      Indenture Trustee, forthwith pay to the Trust Administrator all sums so held
      in
      trust by such Paying Agent;

     

    (iv)  immediately
      resign as a Paying Agent and forthwith pay to the Trust Administrator all sums
      held by it in trust for the payment of Notes if at any time it ceases to meet
      the standards required to be met by a Paying Agent at the time of its
      appointment; and

     

    (v)  comply
      with all requirements of the Code with respect to the withholding from any
      payments made by it on any Notes of any applicable withholding taxes imposed
      thereon and with respect to any applicable reporting requirements in connection
      therewith; provided,
      however,
      that
      with respect to reporting requirements applicable to original issue discount,
      the accrual of market discount or the amortization of premium on the Notes,
      the
      Depositor shall have first provided the calculations pertaining thereto and
      the
      amount of any resulting withholding taxes to the Trust Administrator and the
      Paying Agent.

     

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

     

    Subject
      to applicable laws with respect to escheat of funds, any money held by the
      Trust
      Administrator or any Paying Agent in trust for the payment of any amount due
      with respect to any Note and remaining unclaimed for two years after such amount
      has become due and payable shall be discharged from such trust and be paid
      to
      the Issuer on Issuer Request; and the Holder of such Note shall thereafter,
      as
      an unsecured general creditor, look only to the Issuer for payment thereof
      (but
      only to the extent of the amounts so paid to the Issuer), and all liability
      of
      the Trust Administrator or such Paying Agent with respect to such trust money
      shall thereupon cease; provided,
      however,
      that
      the Trust Administrator or such Paying Agent, before being required to make
      any
      such repayment, shall at the expense and direction of the Issuer cause to be
      published once, in a newspaper published in the English language, customarily
      published on each Business Day and of general circulation in The City of New
      York (including, but not limited to, The
      Bond Buyer),
      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 Issuer.
      The
      Trust Administrator or Paying Agent shall also adopt and employ, at the expense
      and direction of the Issuer, any other reasonable means of notification of
      such
      repayment (including, but not limited to, mailing notice of such repayment
      to
      Holders whose Notes have been called but have not been surrendered for
      redemption or whose right to or interest in moneys due and payable but not
      claimed is determinable from the records of the Trust Administrator or of any
      Paying Agent, at the last address of record for each such Holder).

     

    Section
      3.04  Existence.
      (a)
      The
      Issuer will keep in full effect its existence, rights and franchises as a
      statutory trust under the laws of the State of Delaware (unless it becomes,
      or
      any successor Issuer hereunder is or becomes, organized under the laws of any
      other State or of the United States of America, in which case the Issuer will
      keep in full effect its existence, rights and franchises under the laws of
      such
      other jurisdiction) and will obtain and preserve its qualification to do
      business in each jurisdiction in which such qualification is or shall be
      necessary to protect the validity and enforceability of this Indenture, the
      Notes, the Collateral and each other instrument or agreement included in the
      Collateral.

     

    (b)  Any
      successor to the Owner Trustee appointed pursuant to Section 9.03 of the Trust
      Agreement shall be the successor Owner Trustee under this Indenture without
      the
      execution or filing of any paper, instrument or further act to be done on the
      part of the parties hereto.

     

    (c)  Upon
      any
      consolidation or merger of or other succession to the Owner Trustee, the Person
      succeeding to the Owner Trustee under the Trust Agreement may exercise every
      right and power of the Owner Trustee under this Indenture with the same effect
      as if such Person had been named as the Owner Trustee herein.

     

    Section
      3.05  Protection
      of Collateral.
      The
      Issuer will from time to time execute, deliver and file all such supplements
      and
      amendments hereto and all such financing statements, continuation statements,
      instruments of further assurance and other instruments, and will take such
      other
      action necessary or advisable to:

     

    (i)  maintain
      or preserve the lien and security interest (and the priority thereof) of this
      Indenture or carry out more effectively the purposes hereof,

     

    (ii)  perfect,
      publish notice of or protect the validity of any Grant made or to be made by
      this Indenture;

     

    (iii)  enforce
      any rights with respect to the Collateral; or

     

    (iv)  preserve
      and defend title to the Collateral and the rights of the Indenture Trustee
      and
      the Noteholders in such Collateral against the claims of all persons and
      parties.

     

    The
      Issuer hereby designates the Trust Administrator as its agent and
      attorney-in-fact to prepare and file amendments, if a Responsible Officer of
      the
      Trust Administrator has actual knowledge of a need to amend, and to prepare
      and
      file continuation statements or other instruments required to be filed pursuant
      to this Section 3.05 and hereby authorizes it to file in any filing office
      such
      amendment to financing statement, or continuation statement required to be
      filed
      pursuant to this Section 3.05.

     

    Section
      3.06  Opinions
      as to Collateral.
      On the
      Closing Date, the Issuer shall furnish to the Trust Administrator and the
      Indenture Trustee an Opinion of Counsel to the effect that either, in the
      opinion of such counsel, such action has been taken with respect to the
      recording and filing of this Indenture, any indentures supplemental hereto,
      and
      any other requisite documents, and with respect to the execution and filing
      of
      any financing statements and continuation statements, as are necessary to make
      effective the lien and security interest of this Indenture, or stating that,
      in
      the opinion of such counsel, no such action is necessary to make such lien
      and
      security interest effective.

     

    Section
      3.07  Performance
      of Obligations.
      (a)
      The
      Issuer will not take any action and will use its best efforts not to permit
      any
      action to be taken by others that would release any Person from any of such
      Person’s material covenants or obligations under any instrument or agreement
      included in the Collateral or that would result in the amendment, hypothecation,
      subordination, termination or discharge of, or impair the validity or
      effectiveness of, any such instrument or agreement, except as expressly provided
      in this Indenture, the Transfer and Servicing Agreement or such other instrument
      or agreement.

     

    (b)  The
      Issuer may contract with other Persons to assist it in performing its duties
      under this Indenture, and any performance of such duties by a Person identified
      to the Indenture Trustee in an Officer’s Certificate of the Issuer shall be
      deemed to be action taken by the Issuer. Initially, the Issuer has contracted
      with the Trust Administrator pursuant to the Transfer and Servicing Agreement
      to
      assist the Issuer in performing certain of its duties under this
      Indenture.

     

    (c)  The
      Issuer will punctually perform and observe all of its obligations and agreements
      contained in this Indenture, the Operative Agreements and in the instruments
      and
      agreements included in the Collateral, including but not limited to filing
      or
      causing to be filed all financing statements and continuation statements
      required to be filed by the terms of this Indenture and the Transfer and
      Servicing Agreement in accordance with and within the time periods provided
      for
      herein and therein.

     

    (d)  If
      a
      responsible officer of the Owner Trustee shall have written notice or actual
      knowledge of the occurrence of an Event of Default under the Transfer and
      Servicing Agreement, the Issuer shall promptly notify the Indenture Trustee
      and
      each Rating Agency thereof.

     

    (e)  As
      promptly as possible after the giving of notice of termination to the Master
      Servicer of the Master Servicer’s rights and powers pursuant to Section 8.01(a)
      of the Transfer and Servicing Agreement, the Indenture Trustee shall proceed
      in
      accordance with Section 8.01 and 8.02 of the Transfer and Servicing
      Agreement

     

    (f)  Without
      derogating from the absolute nature of the assignment granted to the Indenture
      Trustee under this Indenture or the rights of the Indenture Trustee hereunder,
      the Issuer agrees (i) that it will not, without the prior written consent of
      the
      Holders of at least a majority in Outstanding Balance of the Notes affected
      thereby, amend, modify, waive, supplement, terminate or surrender, or agree
      to
      any amendment, modification, supplement, termination, waiver or surrender of,
      the terms of any Collateral or the Operative Agreements (except to the extent
      otherwise provided in any such Operative Agreement), or waive timely performance
      or observance by the Trust Administrator, Master Servicer or the Depositor
      of
      its respective duties under the Transfer and Servicing Agreement; and (ii)
      that
      any such amendment shall not (A) increase or reduce in any manner the amount
      of,
      or accelerate or delay the timing of, payments that are required to be made
      for
      the benefit of the Noteholders or (B) reduce the aforesaid percentage of the
      Notes that is required to consent to any such amendment, without the consent
      of
      the Holders of all the Outstanding Notes affected thereby. If any such
      amendment, modification, supplement or waiver shall be so consented to by such
      Holders, the Issuer agrees, promptly following a request by the Indenture
      Trustee to do so, to execute and deliver, in its own name and at its own
      expense, such agreements, instruments, consents and other documents as the
      Indenture Trustee may deem necessary or appropriate in the
      circumstances.

     

    Section
      3.08  Negative
      Covenants.
      So long
      as any Notes are Outstanding, the Issuer shall not:

     

    (i)  except
      as
      expressly permitted by this Indenture, the Mortgage Loan Purchase Agreement
      or
      the Transfer and Servicing Agreement, sell, transfer, exchange or otherwise
      dispose of any of the properties or assets of the Issuer, including those
      included in the Collateral;

     

    (ii)  claim
      any
      credit on, or make any deduction from the principal or interest payable in
      respect of, the Notes (other than amounts properly withheld from such payments
      under the Code) or assert any claim against any present or former Noteholder
      by
      reason of the payment of the taxes levied or assessed upon any part of the
      Collateral;

     

    (iii)  (A)
      permit the validity or effectiveness of this Indenture to be impaired, or permit
      the lien of this Indenture to be amended, hypothecated, subordinated, terminated
      or discharged, or permit any Person to be released from any covenants or
      obligations with respect to the Notes under this Indenture except as may be
      expressly permitted hereby, (B) permit any lien, charge, excise, claim, security
      interest, mortgage or other encumbrance (other than the lien of this Indenture)
      to be created on or extend to or otherwise arise upon or burden the Collateral
      or any part thereof or any interest therein or the proceeds thereof (other
      than
      tax liens, mechanics’ liens and other liens that arise by operation of law, in
      each case with respect to any Collateral and arising solely as a result of
      an
      action or omission of a Borrower or as otherwise permitted in the Transfer
      and
      Servicing Agreement) or (C) permit the lien of this Indenture not to constitute
      a valid first priority (other than with respect to any such tax, mechanics’ or
      other lien) or as otherwise permitted in the Transfer and Servicing Agreement)
      security interest in the Collateral;

     

    (iv)  dissolve
      or liquidate in whole or in part or merge or consolidate with any other
      Person;

     

    (v)  remove
      the Trust Administrator without cause unless the Rating Agency Condition shall
      have been satisfied in connection with such removal;

     

    (vi)  take
      any
      other action or fail to take any action that would jeopardize the status of
      the
      Holder of the Ownership Certificate as a REIT, Qualified REIT Subsidiary or
      Disregarded Entity under the Code or result in an imposition of tax on the
      Issuer; or

     

    (vii)  except
      with the prior written consent of the Noteholders, take any action described
      in
      Section 5.06 of the Trust Agreement.

     

    Section
      3.09  Annual
      Statement as to Compliance.
      The
      Issuer will deliver to the Indenture Trustee, within 120 days after the end
      of
      each fiscal year of the Issuer (commencing with the fiscal year 2005), an
      Officer’s Certificate stating, as to the Authorized Officer signing such
      Officer’s Certificate, that:

     

    (i)  a
      review
      of the activities of the Issuer during such year and of its performance under
      this Indenture has been made under such Authorized Officer’s supervision;
      and

     

    (ii)  to
      the
      best of such Authorized Officer’s knowledge, based on such review, the Issuer
      has complied with all conditions and covenants under this Indenture throughout
      such year or, if there has been a default in its compliance with any such
      condition or covenant, specifying each such default known to such Authorized
      Officer and the nature and status thereof.

     

    Section
      3.10  Treatment
      of Notes as Debt for Tax Purposes.
      The
      Issuer shall, and shall cause the Trust Administrator and the Master Servicer
      to, treat the Notes as indebtedness for all federal, state and local income,
      single business, and franchise tax purposes.

     

    Section
      3.11  [Reserved] 

     

    Section
      3.12  No
      Other Business.
      The
      Issuer shall not engage in any business other than financing, purchasing,
      owning, selling and managing the Collateral in the manner contemplated by this
      Indenture and the Operative Agreements and activities incidental
      thereto.

     

    Section
      3.13  No
      Borrowing.
      The
      Issuer shall not issue, incur, assume, guarantee or otherwise become liable,
      directly or indirectly, for any indebtedness other than the Notes.

     

    Section
      3.14   [Reserved].

     

    Section
      3.15  Guarantees,
      Loans, Advances and Other Liabilities.
      Except
      as contemplated by the Transfer and Servicing Agreement or this Indenture,
      the
      Issuer shall not make any loan or advance or credit to, or guarantee (directly
      or indirectly or by an instrument having the effect of assuring another’s
      payment or performance on any obligation or capability of so doing or
      otherwise), endorse or otherwise become contingently liable, directly or
      indirectly, in connection with the obligations, stocks or dividends of, or
      own,
      purchase, repurchase or acquire (or agree contingently to do so) any stock,
      obligations, assets or securities of, or any other interest in, or make any
      capital contribution to, any other Person.

     

    Section
      3.16  Capital
      Expenditures.
      The
      Issuer shall not make any expenditure (by long-term or operating lease or
      otherwise) for capital assets (either realty or personalty).

     

    Section
      3.17  [Reserved].

     

    Section
      3.18  Restricted
      Payments.
      The
      Issuer shall not, directly or indirectly, (i) pay any dividend or make any
      payment (by reduction of capital or otherwise), whether in cash, property,
      securities or a combination thereof, to the Owner Trustee or any owner of a
      beneficial interest in the Issuer or otherwise with respect to any ownership
      or
      equity interest or security in or of the Issuer, (ii) redeem, purchase, retire
      or otherwise acquire for value any such ownership or equity interest or security
      or (iii) set aside or otherwise segregate any amounts for any such purpose;
      provided, however,
      the
      Issuer may make, or cause to be made, payments and distributions as contemplated
      by, and to the extent funds are available for such purpose under, the Transfer
      and Servicing Agreement, this Indenture or the Trust Agreement. The Issuer
      will
      not, directly or indirectly, make payments to or from the Collection Account
      except in accordance with this Indenture and the Operative
      Agreements.

     

    Section
      3.19  Notice
      of Events of Default.
      The
      Issuer shall promptly, and in no event more than three Business Days following
      such event, give the Indenture Trustee, Trust Administrator and each Rating
      Agency written notice of each Event of Default hereunder, and each default
      on
      the part of the Trust Administrator, Master Servicer or the Depositor of its
      obligations under the Transfer and Servicing Agreement, to the extent a
      responsible officer of the Owner Trustee shall have written notice or actual
      knowledge thereof.

     

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

     

    Section
      3.21  Covenants
      of the Issuer.
      All
      covenants of the Issuer in this Indenture are covenants of the Issuer and are
      not covenants of the Owner Trustee in its individual capacity. The Owner Trustee
      is, and any successor Owner Trustee under the Trust Agreement will be, entering
      into this Indenture on behalf of the Issuer solely as Owner Trustee under the
      Trust Agreement and not in its respective individual capacity, and in no case
      whatsoever shall the Owner Trustee or any such successor Owner Trustee be
      personally liable on, or for any loss in respect of, any of the statements,
      representations, warranties or obligations of the Issuer hereunder, as to all
      of
      which the parties hereto agree to look solely to the property of the
      Issuer.

     

    Section
      3.22  Representations
      and Warranties of the Issuer.
      With
      respect to the Mortgage Notes, the Issuer represents and warrants
      that:

     

    (i)  This
      Indenture creates a valid and continuing security interest (as defined in the
      applicable Uniform Commercial Code (the “UCC”) in the Mortgage Notes in favor of
      the Indenture Trustee, which security interest is prior to all other liens,
      and
      is enforceable as such against creditors of and purchasers from the
      Issuer;

     

    (ii)  The
      Mortgage Notes constitute “instruments” within the meaning of the applicable
      UCC;

     

    (iii)  The
      Issuer owns and has good title to the Mortgage Notes free and clear of any
      lien,
      claim or encumbrance of any Person;

     

    (iv)  The
      Issuer has received all consents and approvals required by the terms of the
      Mortgage Notes to the pledge of the Mortgage Notes hereunder to the Indenture
      Trustee;

     

    (v)  All
      original executed copies of each Mortgage Note have been or will be delivered
      to
      the Indenture Trustee (or its custodian), as set forth in the Transfer and
      Servicing Agreement;

     

    (vi)  The
      Issuer has received a written acknowledgement from the Indenture Trustee (or
      its
      custodian) that it is holding the Mortgage Notes solely on behalf and for the
      benefit of the Indenture Trustee;

     

    (vii)  Other
      than the security interest granted to the Indenture Trustee pursuant to this
      Indenture, the Issuer has not pledged, assigned, sold, granted a security
      interest in, or otherwise conveyed any of the Mortgage Notes. The Issuer has
      not
      authorized the filing of and is not aware of any financing statements against
      the Issuer that include a description of the collateral covering the Mortgage
      Notes other than a financing statement relating to the security interest granted
      to the Indenture Trustee hereunder or that has been terminated. The Issuer
      is
      not aware of any judgment or tax lien filings against the Issuer;
      and

     

    (viii)  None
      of
      the Mortgage Notes has any marks or notations indicating that they have been
      pledged, assigned or otherwise conveyed to any Person other than the Indenture
      Trustee.

     

    (b)  The
      representations and warranties set forth in this Section 3.22 shall survive
      the
      Closing Date and shall not be waived.

     

    ARTICLE
      IV

     

    SATISFACTION
      AND DISCHARGE

     

    Section
      4.01  Satisfaction
      and Discharge of Indenture.
      This
      Indenture shall cease to be of further effect with respect to the Notes, except
      as to (i) rights of registration of transfer and exchange, (ii) substitution
      of
      mutilated, destroyed, lost or stolen Notes, (iii) rights of Noteholders to
      receive payments of principal thereof and interest thereon, (iv) Sections 3.03,
      3.04, 3.05, 3.08, 3.12 and 3.13, (v) the rights, obligations and immunities
      of
      the Indenture Trustee hereunder (including the rights of the Indenture Trustee
      under Section 6.07), (vi) the rights, obligations and immunities of the Trust
      Administrator hereunder (including the obligations of the Trust Administrator
      under Section 4.02) and (vii) the rights of Noteholders as beneficiaries hereof
      with respect to the property so deposited with the Trust Administrator payable
      to all or any of them, and the Indenture Trustee, on demand of and at the
      expense of the Issuer, shall execute proper instruments acknowledging
      satisfaction and discharge of this Indenture with respect to the Notes, when
      either (I) the Transfer and Servicing Agreement has been terminated pursuant
      to
      Section 9.01 thereof or (II):

     

    (A)        
       either

     

    (1) all
      Notes
      theretofore authenticated and delivered (other than (i) Notes that have been
      destroyed, lost or stolen and that have been replaced or paid as provided in
      Section 2.05 and (ii) Notes for whose payment money has theretofore been
      deposited in trust or segregated and held in trust by the Issuer and thereafter
      repaid to the Issuer or discharged from such trust, as provided in Section
      3.03)
      have been delivered to the Trust Administrator for cancellation; or

     

    (2) all
      Notes
      not theretofore delivered to the Trust Administrator for
      cancellation

     

    a. have
      become due and payable,

     

    b. will
      become due and payable at the applicable Maturity Date within one year,
      or

     

    c. are
      to be
      called for redemption within one year under arrangements satisfactory to the
      Trust Administrator for the giving of notice of redemption by the Trust
      Administrator in the name, and at the expense, of the Issuer,

     

    and
      the
      Issuer, in the case of a., b. or c. above, has irrevocably deposited or caused
      to be irrevocably deposited with the Trust Administrator cash or direct
      obligations of or obligations guaranteed by the United States of America (which
      will mature prior to the date such amounts are payable), in trust for such
      purpose, in an amount sufficient to pay and discharge the entire indebtedness
      on
      such Notes not theretofore delivered to the Trust Administrator or Note
      Registrar for cancellation when due to the Maturity Date or Redemption Date
      (if
      the Notes are called for redemption pursuant to Section 10.01 hereof), as the
      case may be;

     

    (B) the
      Issuer has paid or caused to be paid all other sums payable hereunder by the
      Issuer;

     

    (C) the
      Issuer has delivered to the Indenture Trustee an Officer’s Certificate and an
      Opinion of Counsel (at the Issuer’s expense) and (if required by the TIA or the
      Indenture Trustee) an Independent Certificate from a firm of certified public
      accountants, each meeting the applicable requirements of Section 11.01 hereof
      and, subject to Section 11.02 hereof, each stating that all conditions precedent
      herein provided for relating to the satisfaction and discharge of this Indenture
      with respect to the Notes have been complied with; and

     

    (D) the
      Issuer has delivered to each Rating Agency notice of such satisfaction and
      discharge.

     

    Section
      4.02  Application
      of Trust Money.
      All
      moneys deposited with the Trust Administrator pursuant to Sections 3.03 and
      4.01
      hereof shall be held in trust and applied by it, in accordance with the
      provisions of the Notes and this Indenture, to the payment, either directly
      or
      through any Paying Agent, as the Trust Administrator may determine, to the
      Holders of the particular Notes for the payment or redemption of which such
      moneys have been deposited with the Trust Administrator, of all sums due and
      to
      become due thereon for principal and interest; but such moneys need not be
      segregated from other funds except to the extent required herein or in the
      Transfer and Servicing Agreement or required by law.

     

    Section
      4.03  Repayment
      of Moneys Held by Paying Agent.
      In
      connection with the satisfaction and discharge of this Indenture with respect
      to
      the Notes, all moneys then held by any Paying Agent other than the Trust
      Administrator under the provisions of this Indenture with respect to such Notes
      shall, upon demand of the Issuer, be paid to the Trust Administrator to be
      held
      and applied according to Section 3.03 and thereupon such Paying Agent shall
      be
      released from all further liability with respect to such moneys.

     

    Section
      4.04  Trust
      Money Received by Indenture Trustee.
      If the
      Indenture Trustee receives any moneys in respect of the Collateral (other than
      with respect to any amounts in respect of any payments or reimbursements of
      fees, expenses or indemnity amounts properly owing to the Indenture Trustee
      pursuant to the terms of any of the Operative Agreements), the Indenture Trustee
      shall remit promptly such funds to the Trust Administrator.

     

    ARTICLE
      V

     

    REMEDIES

     

    Section
      5.01  Events
      of Default.
“Event
      of Default”, wherever used herein, 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):

     

    (i)  Default
      for one month or more in the payment of any Current Interest on the Notes when
      the same becomes due and payable under Section 6.02 of the Transfer and
      Servicing Agreement;

     

    (ii)  failure
      to pay the entire principal of any Note when the same becomes due and payable
      under the Transfer and Servicing Agreement or on the applicable Maturity
      Date;

     

    (iii)  failure
      to observe or perform any covenant or agreement of the Issuer made in this
      Indenture (other than a covenant or agreement, a default in the observance
      or
      performance of which is elsewhere in this Section specifically dealt with),
      or
      any representation or warranty of the Issuer made in this Indenture or in any
      certificate or other writing delivered pursuant hereto or in connection herewith
      proving to have been incorrect in any material respect as of the time when
      the
      same shall have been made, and such default shall continue or not be cured,
      or
      the circumstance or condition in respect of which such misrepresentation or
      warranty was incorrect shall not have been eliminated or otherwise cured, for
      a
      period of 30 days after there shall have been given, by registered or certified
      mail, to the Issuer by the Indenture Trustee or to the Issuer and the Indenture
      Trustee by the Holders of at least 25% of the Outstanding Balance of the Notes,
      a written notice specifying such default or incorrect representation or warranty
      and requiring it to be remedied and stating that such notice is a notice of
      Default hereunder;

     

    (iv)  the
      filing of a decree or order for relief by a court having jurisdiction in the
      premises in respect of the Issuer or any substantial part of the Collateral
      in
      an involuntary case under any applicable federal or state bankruptcy, insolvency
      or other similar law now or hereafter in effect, or appointing a receiver,
      liquidator, assignee, custodian, trustee, sequestrator or similar official
      of
      the Issuer or for any substantial part of the Collateral, or ordering the
      winding-up or liquidation of the Issuer’s affairs, and such decree or order
      shall remain unstayed and in effect for a period of 60 consecutive
      days;

     

    (v)  the
      receipt of notice from the Holder of the Ownership Certificate to the Indenture
      Trustee of such Holder’s failure to qualify as a REIT, a Qualified REIT
      Subsidiary or a Disregarded Entity; or

     

    (vi)  the
      commencement by the Issuer of a voluntary case under any applicable federal
      or
      state bankruptcy, insolvency or other similar law now or hereafter in effect,
      or
      the consent by the Issuer to the entry of an order for relief in an involuntary
      case under any such law, or the consent by the Issuer to the appointment or
      taking possession by a receiver, liquidator, assignee, custodian, trustee,
      sequestrator or similar official of the Issuer or for any substantial part
      of
      the Collateral, or the making by the Issuer of any general assignment for the
      benefit of creditors, or the failure by the Issuer generally to pay its debts
      as
      such debts become due, or the taking of any action by the Issuer in furtherance
      of any of the foregoing.

     

    The
      Issuer shall deliver to the Indenture Trustee, within five days after the
      occurrence thereof, written notice in the form of an Officer’s Certificate of
      any event which with the giving of notice and the lapse of time would become
      an
      Event of Default under clause (iii), its status and what action the Issuer
      is
      taking or proposes to take with respect thereto.

     

    Section
      5.02  Acceleration
      of Maturity; Rescission and Annulment.
      If an
      Event of Default should occur and be continuing, then and in every such case
      the
      Indenture Trustee may, or shall, at the direction of the Holders of Notes
      representing not less than a majority of the Outstanding Balance of the Priority
      Class Notes, declare all the Notes to be immediately due and payable, by a
      notice in writing to the Issuer (and to the Indenture Trustee if given by
      Noteholders), and upon any such declaration the unpaid principal amount of
      such
      Notes, together with accrued and unpaid interest on the Notes through the date
      of acceleration, shall become immediately due and payable.

     

    At
      any
      time after such declaration of acceleration of maturity has been made and before
      a judgment or decree for payment of the money due has been obtained by the
      Indenture Trustee as hereinafter in this Article Five provided, the Holders
      of
      Notes representing a majority of the Outstanding Balance of the Priority Class
      Notes, by written notice to the Issuer and the Indenture Trustee, may rescind
      and annul such declaration and its consequences if:

     

    (i)  the
      Issuer has paid or deposited with the Trust Administrator a sum sufficient
      to
      pay:

     

    (A) all
      payments of principal of and interest on all affected Priority Class Notes
      and
      all other amounts that would then be due hereunder or upon such Notes if the
      Event of Default giving rise to such acceleration had not occurred;
      and

     

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

     

    (ii)  all
      Events of Default, other than the nonpayment of the principal of the Notes
      that
      has become due solely by such acceleration, have been cured or waived as
      provided in Section 5.12.

     

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

     

    The
      Holders of Non-Priority Class Notes shall have no right to exercise any
      Noteholders’ rights referred to in this Article Five, except to the extent
      expressly provided herein.

     

    Section
      5.03  Collection
      of Indebtedness and Suits for Enforcement by Indenture Trustee.
      (a) The
      Issuer covenants that if (i) default is made in the payment of any Current
      Interest on any Note when the same becomes due and payable, and such default
      continues for a period of five days, or (ii) default is made in the payment
      of
      the principal of any Note when the same becomes due and payable on the
      applicable Maturity Date, the Issuer will, upon demand of the Indenture Trustee,
      pay to the Trust Administrator, for the benefit of the Holders of the Notes,
      the
      whole amount then due and payable on such Notes for principal and interest,
      with
      interest on the overdue principal and, to the extent payment at such rate of
      interest shall be legally enforceable, on overdue installments of interest
      at
      the rate borne by the Notes and, in addition thereto, pay to the Indenture
      Trustee 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 Indenture Trustee and its agents and
      counsel.

     

    (a)  In
      case
      the Issuer shall fail forthwith to pay such amounts upon such demand, the
      Indenture Trustee, in its own name and as trustee of an express trust, may
      institute a Proceeding for the collection of the sums so due and unpaid, and
      may
      prosecute such Proceeding to judgment or final decree, and may enforce the
      same
      against the Issuer upon such Notes and collect in the manner provided by law
      out
      of the property of the Issuer upon such Notes, wherever situated, the moneys
      adjudged or decreed to be payable.

     

    (b)  If
      an
      Event of Default occurs and is continuing, the Indenture Trustee may, in its
      discretion, or shall, at the direction of the Holders of Priority Class Notes
      representing not less than a majority of the Outstanding Balance thereof, as
      more particularly provided in Section 5.04, proceed to protect and enforce
      its
      rights and the rights of the Noteholders, by such appropriate Proceedings as
      the
      Indenture Trustee shall deem most effective 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 or legal or equitable right vested in the
      Indenture Trustee by this Indenture or by law.

     

    (c)  In
      case
      there shall be pending, relative to the Issuer or any other obligor upon the
      Notes or any Person having or claiming an ownership interest in the Collateral,
      Proceedings under Title 11 of the United States Code or any other applicable
      federal or state bankruptcy, insolvency or other similar law, or in case a
      receiver, assignee or trustee in bankruptcy or reorganization, or liquidator,
      sequestrator or similar official shall have been appointed for or taken
      possession of the Issuer or its property or such other obligor or Person, or
      in
      case of any other comparable judicial Proceedings relative to the Issuer or
      other obligor upon the Notes, or to the creditors or property of the Issuer
      or
      such other obligor, the Indenture Trustee, irrespective of whether the principal
      of any Notes shall then be due and payable as therein expressed or by
      declaration or otherwise and irrespective of whether the Indenture Trustee
      shall
      have made any demand pursuant to the provisions of this Section, shall be
      entitled and empowered, by intervention in such Proceedings or
      otherwise:

     

    (i)  to
      file
      and prove a claim or claims for the whole amount of principal and interest
      owing
      and unpaid in respect of the Notes and to file such other papers or documents
      as
      may be necessary or advisable in order to have the claims of the Indenture
      Trustee (including any claim for reasonable compensation to the Indenture
      Trustee and each predecessor Indenture Trustee, and their respective agents,
      attorneys and counsel, and for reimbursement of all expenses and liabilities
      incurred, and all advances made, by the Indenture Trustee and each predecessor
      Indenture Trustee, except as a result of negligence or bad faith) and of the
      Noteholders allowed in such Proceedings;

     

    (ii)  unless
      prohibited by applicable law and regulations, to vote on behalf of the Holders
      of Notes in any election of a trustee, a standby trustee or Person performing
      similar functions in any such Proceedings;

     

    (iii)  to
      collect and receive any moneys or other property payable or deliverable on
      any
      such claims and to distribute all amounts received with respect to the claims
      of
      the Noteholders and of the Indenture Trustee on their behalf; and

     

    (iv)  to
      file
      such proofs of claim and other papers or documents as may be necessary or
      advisable in order to have the claims of the Indenture Trustee or the Holders
      of
      Notes allowed in any Proceedings relative to the Issuer, its creditors and
      its
      property;

     

    and
      any
      trustee, receiver, liquidator, custodian or other similar official in any such
      Proceeding is hereby authorized by each of such Noteholders to make payments
      to
      the Trust Administrator and, in such event or in the event that the Indenture
      Trustee shall consent to the making of payments directly to such Noteholders,
      to
      pay to the Indenture Trustee such amounts as shall be sufficient to cover
      reasonable compensation to the Indenture Trustee, each predecessor Indenture
      Trustee and their respective agents, attorneys and counsel, and all other
      expenses and liabilities incurred by it or its agents, and all advances made,
      by
      the Indenture Trustee and each predecessor Indenture Trustee except as a result
      of negligence or bad faith.

     

    (d)  Nothing
      herein contained shall be deemed to authorize the Indenture Trustee to authorize
      or consent to or vote for or accept or adopt on behalf of any Noteholder any
      plan of reorganization, arrangement, adjustment or composition affecting the
      Notes or the rights of any Holder thereof or to authorize the Indenture Trustee
      to vote in respect of the claim of any Noteholder in any such proceeding except,
      as aforesaid, to vote for the election of a trustee in bankruptcy or similar
      Person.

     

    (e)  All
      rights of action and of asserting claims under this Indenture, or under any
      of
      the Notes, may be enforced by the Indenture Trustee without the possession
      of
      any of the Notes or the production thereof in any trial or other Proceedings
      relative thereto, and any such action or Proceedings instituted by the Indenture
      Trustee shall be brought in its own name as trustee of an express trust, and
      any
      recovery of judgment, subject to the payment of the expenses, disbursements
      and
      compensation of the Indenture Trustee, each predecessor Indenture Trustee and
      their respective agents and attorneys, shall be for the ratable benefit of
      the
      Holders of the Notes.

     

    (f)  In
      any
      Proceedings brought by the Indenture Trustee (and also any Proceedings involving
      the interpretation of any provision of this Indenture to which the Indenture
      Trustee shall be a party), the Indenture Trustee shall be held to represent
      all
      the Holders of the Notes, and it shall not be necessary to make any Noteholder
      a
      party to any such Proceedings.

     

    Section
      5.04  Remedies;
      Priorities.
      (a)
      If an
      Event of Default shall have occurred and be continuing, the Indenture Trustee
      may, and at the direction of Holders of Priority Class Notes representing a
      majority of the Outstanding Balance thereof shall, do one or more of the
      following (subject to Section 5.05):

     

    (i)  institute
      Proceedings in its own name and as trustee of an express trust for the
      collection of all amounts then payable on the Notes or under this Indenture
      with
      respect thereto, whether by declaration or otherwise, enforce any judgment
      obtained and collect from the Issuer and any other obligor upon such Notes
      moneys adjudged due;

     

    (ii)  institute
      Proceedings from time to time for the complete or partial foreclosure of this
      Indenture with respect to the Collateral;

     

    (iii)  exercise
      any remedies of a secured party under the Relevant UCC and take any other
      appropriate action to protect and enforce the rights and remedies of the
      Indenture Trustee and the Holders of the Notes; and

     

    (iv)  sell
      the
      Collateral or any portion thereof or rights or interest therein, at one or
      more
      public or private sales called and conducted in any manner permitted by
      law;

     

    provided,
      however,
      that
      the Indenture Trustee may not sell or otherwise liquidate any Collateral
      following an Event of Default, other than an Event of Default described in
      Section 5.01(a)(i) or (ii), unless (A) the Holders of 100% of the Outstanding
      Balance of the Notes consent thereto or (B) the proceeds of such sale or
      liquidation distributable to the Noteholders are sufficient to discharge in
      full
      all amounts then due and unpaid upon such Notes for principal and interest
      or
      (C) the Indenture Trustee determines, based on information provided by the
      Trust
      Administrator, that the Collateral will not continue to provide sufficient
      funds
      for the payment of principal of and interest on the Notes as they would have
      become due if the Notes had not been declared due and payable, and the Indenture
      Trustee obtains the consent of Holders of 66-2/3% of the Outstanding Balance
      of
      the Notes. In determining such sufficiency or insufficiency with respect to
      clauses (B) and (C), the Indenture Trustee may, but need not, obtain and rely
      upon an opinion of an Independent investment banking or accounting firm of
      national reputation as to the feasibility of such proposed action and as to
      the
      sufficiency of the Collateral for such purpose.

     

    (b)  If
      the
      Indenture Trustee collects any money or property pursuant to this Article Five,
      it shall pay out the money or property in the following order:

     

    first:
      to the
      Indenture Trustee, for any costs or expenses, including any reasonable
      out-of-pocket attorneys’ fees, incurred by it in connection with the enforcement
      of the remedies provided for in this Article Five and for any other unpaid
      amounts due to the Indenture Trustee hereunder, to the Trust Administrator
      for
      any amounts due and owing to it under the Transfer and Servicing Agreement,
      to
      the Custodian for any amounts due and owing to them under the Custodial
      Agreement, and to the Owner Trustee, to the extent of any fees and expenses
      due
      and owing to it (including pursuant to Section 7.03 of the Trust Agreement)
      and
      for any other unpaid amounts due to the Owner Trustee under the Transfer and
      Servicing Agreement;

     

    second:
      to the
      Master Servicer and Servicer for any Servicing Fees then due and unpaid and
      any
      unreimbursed Advances and other servicing advances;

     

    third:
      to the
      Notes, all accrued and unpaid interest thereon and amounts in respect of
      principal according to the priorities set forth in Section 6.02 of the Transfer
      and Servicing Agreement; provided, however, that accrued and unpaid interest
      shall be paid to Noteholders of each Class of Notes before any payments in
      respect of principal; and

     

    fourth:
      to the
      Owner Trustee or its Paying Agent for any amounts to be distributed to the
      Holder of the Ownership Certificate.

     

    The
      Trust
      Administrator may fix a record date and payment date for any payment to
      Noteholders pursuant to this Section. At least 15 days before such record date,
      the Issuer shall mail to each Noteholder and the Indenture Trustee a notice
      that
      states the record date, the payment date and the amount to be paid.

     

    Section
      5.05  Optional
      Preservation of the Collateral.
      If the
      Notes have been declared to be due and payable under Section 5.02 following
      an
      Event of Default and such declaration and its consequences have not been
      rescinded and annulled, the Indenture Trustee may, but need not, elect to
      maintain possession of the Collateral. It is the desire of the parties hereto
      and the Noteholders that there be at all times sufficient funds for the payment
      of principal of and interest on the Notes, and the Indenture Trustee shall
      take
      such desire into account when determining whether or not to maintain possession
      of the Collateral. In determining whether to maintain possession of the
      Collateral, the Indenture Trustee may, but need not, obtain and rely upon an
      opinion (at the expense of the Issuer) of an Independent investment banking
      or
      accounting firm of national reputation as to the feasibility of such proposed
      action and as to the sufficiency of the Collateral for such
      purpose.

     

    Section
      5.06  Limitation
      of Suits.
      Other
      than as otherwise expressly provided herein in the case of an Event of Default,
      no Holder of any Note shall have any right to institute any Proceeding, judicial
      or otherwise, with respect to this Indenture, or for the appointment of a
      receiver or trustee, or for any other remedy hereunder, unless:

     

    (i)  such
      Holder has previously given written notice to the Indenture Trustee of a
      continuing Event of Default;

     

    (ii)  the
      Holders of not less than 25% of the Outstanding Balance of the Notes have made
      written request to the Indenture Trustee to institute such Proceeding in respect
      of such Event of Default in its own name as Indenture Trustee
      hereunder;

     

    (iii)  such
      Holder or Holders have offered to the Indenture Trustee indemnity reasonably
      satisfactory to it against the costs, expenses and liabilities to be incurred
      in
      complying with such request;

     

    (iv)  the
      Indenture Trustee for 60 days after its receipt of such notice, request and
      offer of indemnity has failed to institute such Proceedings; and

     

    (v)  no
      direction inconsistent with such written request has been given to the Indenture
      Trustee during such 60-day period by the Holders of a majority of the
      Outstanding Balance of the Notes.

     

    It
      is
      understood and intended that no one or more Holders of Notes shall have any
      right in any manner whatever by virtue of, or by availing of, any provision
      of
      this Indenture to affect, disturb or prejudice the rights of any other Holders
      of Notes or to obtain or to seek to obtain priority or preference over any
      other
      Holders or to enforce any right under this Indenture, except in the manner
      herein provided.

     

    In
      the
      event the Indenture Trustee shall receive conflicting or inconsistent requests
      and indemnity from two or more groups of Holders of Notes, each representing
      less than a majority of the Outstanding Balance of the Notes, the Indenture
      Trustee shall take the action requested by the Holders of the largest percentage
      in Outstanding Balance of the Notes, notwithstanding any other provisions of
      this Indenture.

     

    Section
      5.07  Unconditional
      Rights of Noteholders To Receive Principal and Interest.
      Notwithstanding any other provisions in this Indenture, the Holder of any Note
      shall have the right, which is absolute and unconditional, to receive payment
      of
      the principal of and interest, if any, on such Note on or after the respective
      due dates thereof expressed in such Note or in this Indenture (or, in the case
      of redemption, on or after the Redemption Date) and to institute suit for the
      enforcement of any such payment, and such right shall not be impaired without
      the consent of such Holder.

     

    Section
      5.08  Restoration
      of Rights and Remedies.
      If the
      Indenture Trustee or any Noteholder 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 Indenture
      Trustee or to such Noteholder, then and in every such case the Issuer, the
      Indenture Trustee and the Noteholders shall, subject to any determination in
      such Proceeding, be restored severally and respectively to their former
      positions hereunder, and thereafter all rights and remedies of the Indenture
      Trustee and the Noteholders shall continue as though no such Proceeding had
      been
      instituted.

     

    Section
      5.09  Rights
      and Remedies Cumulative.
      No
      right or remedy herein conferred upon or reserved to the Indenture Trustee
      or to
      the Noteholders 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
      5.10  Delay
      or Omission Not a Waiver.
      No
      delay or omission of the Indenture Trustee or any Holder of any Note to exercise
      any right or remedy accruing upon any Default or Event of Default shall impair
      any such right or remedy or constitute a waiver of any such Default or Event
      of
      Default or an acquiescence therein. Every right and remedy given by this Article
      Five or by law to the Indenture Trustee or to the Noteholders may be exercised
      from time to time, and as often as may be deemed expedient, by the Indenture
      Trustee or by the Noteholders, as the case may be.

     

    Section
      5.11  Control
      by Noteholders.
      Except
      as otherwise provided in Section 5.02, the Holders of a majority of the
      Outstanding Balance of the Notes shall have the right to direct the time, method
      and place of conducting any Proceeding for any remedy available to the Indenture
      Trustee with respect to the Notes or exercising any trust or power conferred
      on
      the Indenture Trustee; provided that:

     

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

     

    (ii)  subject
      to the express terms of Section 5.04, any direction to the Indenture Trustee
      to
      sell or liquidate the Collateral shall be by Holders of Notes representing
      not
      less than 100% of the Outstanding Balance of the Notes;

     

    (iii)  if
      the
      conditions set forth in Section 5.05 have been satisfied and the Indenture
      Trustee elects to retain the Collateral pursuant to such Section, then any
      direction to the Indenture Trustee by Holders of Notes representing less than
      100% of the Outstanding Balance of the Notes to sell or liquidate the Collateral
      shall be of no force and effect; and

     

    (iv)  the
      Indenture Trustee may take any other action deemed proper by the Indenture
      Trustee that is not inconsistent with such direction.

     

    Notwithstanding
      the rights of the Noteholders set forth in this Section, subject to Section
      6.01(g), the Indenture Trustee need not take any action that it determines
      might
      involve it in liability or might materially adversely affect the rights of
      any
      Noteholders not consenting to such action.

     

    Section
      5.12  Waiver
      of Past Defaults.
      Prior
      to the declaration of the acceleration of the maturity of the Notes as provided
      in Section 5.02, the Holders of Notes of not less than a majority of the
      Outstanding Balance of the Notes may waive, in writing, any past Default or
      Event of Default and its consequences except a Default (a) in payment of
      principal of or interest on any of the Notes or (b) in respect of a covenant
      or
      provision hereof which cannot be modified or amended without the consent of
      the
      Holder of each Note. In the case of any such waiver, the Issuer, the Indenture
      Trustee and the Holders of the Notes shall be restored to their former positions
      and rights hereunder, respectively; but no such waiver shall extend to any
      subsequent or other Default or impair any right consequent thereto.

     

    Upon
      any
      such waiver, such Default shall cease to exist and be deemed to have been cured
      and not to have occurred, and any Event of Default arising therefrom shall
      be
      deemed to have been cured and not to have occurred, for every purpose of this
      Indenture; but no such waiver shall extend to any subsequent or other Default
      or
      Event of Default or impair any right consequent thereto.

     

    Section
      5.13  Undertaking
      for Costs.
      All
      parties to this Indenture agree, and each Holder of a Note 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 Indenture Trustee for any action
      taken, suffered or omitted by it as Indenture Trustee, the filing by any party
      litigant in such suit of an undertaking to pay the costs of such suit, and
      that
      such court may in its discretion assess reasonable costs, including reasonable
      attorneys’ fees, against any party litigant in such suit, having due regard to
      the merits and good faith of the claims or defenses made by such party litigant;
      but the provisions of this Section shall not apply to (a) any suit instituted
      by
      the Indenture Trustee, (b) any suit instituted by any Noteholder, or group
      of
      Noteholders, in each case holding in the aggregate more than 10% of the
      Outstanding Balance of the Notes or (c) any suit instituted by any Noteholder
      for the enforcement of the payment of principal of or interest on any Note
      on or
      after the respective due dates expressed in such Note and in this Indenture
      (or,
      in the case of redemption, on or after the Redemption Date).

     

    Section
      5.14  Waiver
      of Stay or Extension Laws.
      The
      Issuer 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 or extension law wherever enacted, now or
      at
      any time hereafter in force, that may affect the covenants or the performance
      of
      this Indenture; and the Issuer (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 granted
      to
      the Indenture Trustee, but will suffer and permit the execution of every such
      power as though no such law had been enacted.

     

    Section
      5.15  Action
      on Notes.
      The
      Indenture Trustee’s right to seek and recover judgment on the Notes or under
      this Indenture shall not be affected by the seeking, obtaining or application
      of
      any other relief under or with respect to this Indenture. Neither the lien
      of
      this Indenture nor any rights or remedies of the Indenture Trustee or the
      Noteholders shall be impaired by the recovery of any judgment by the Indenture
      Trustee against the Issuer or by the levy of any execution under such judgment
      upon any portion of the Collateral or upon any of the assets of the Issuer.
      Any
      money or property collected by the Indenture Trustee and remitted to the Trust
      Administrator shall be applied by the Trust Administrator in accordance with
      Section 5.04(b).

     

    Section
      5.16  Performance
      and Enforcement of Certain Obligations.
      (a)
      Promptly
      following a request from the Indenture Trustee to do so, the Issuer shall take
      all such lawful action as the Indenture Trustee may request to compel or secure
      the performance and observance by the Seller, the Depositor, the Trust
      Administrator or the Master Servicer, as applicable, of each of their
      obligations to the Issuer under or in connection with the Mortgage Loan Purchase
      Agreement and Transfer and Servicing Agreement, and to exercise any and all
      rights, remedies, powers and privileges lawfully available to the Issuer under
      or in connection with the Transfer and Servicing Agreement, including the
      transmission of notices of default on the part of the Seller, the Depositor,
      the
      Trust Administrator or the Master Servicer, as applicable, under the Mortgage
      Loan Purchase Agreement and Transfer and Servicing Agreement and the institution
      of legal or administrative actions or proceedings to compel or secure
      performance by the Seller, the Depositor, the Trust Administrator or the Master
      Servicer of each of their applicable obligations under the Mortgage Loan
      Purchase Agreement and Transfer and Servicing Agreement.

     

    (b)  If
      an
      Event of Default has occurred and is continuing, the Indenture Trustee may,
      and
      at the direction (which direction shall be in writing or by telephone (confirmed
      in writing promptly thereafter)) of the Holders of a majority of the Outstanding
      Balance of the Priority Class Notes shall, exercise all rights, remedies,
      powers, privileges and claims of the Issuer against the Depositor, the Trust
      Administrator or the Master Servicer under or in connection with the Transfer
      and Servicing Agreement or the Seller under or in connection with the Mortgage
      Loan Purchase Agreement, including the right or power to take any action to
      compel or secure performance or observance by the Seller, the Depositor or
      the
      Master Servicer, of each of their applicable obligations to the Issuer
      thereunder and to give any consent, request, notice, direction, approval,
      extension or waiver under the Transfer and Servicing Agreement, and any right
      of
      the Issuer to take such action shall be suspended.

     

    ARTICLE
      VI

     

    THE
      INDENTURE TRUSTEE

     

    Section
      6.01  Duties
      of Indenture Trustee.
      (a)
      If an
      Event of Default has occurred and is continuing, the Indenture Trustee shall
      exercise the rights and powers vested in it by this Indenture and use the same
      degree of care and skill in its exercise as a prudent person would exercise
      or
      use under the circumstances in the conduct of such person’s own
      affairs.

     

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

     

    (i)  the
      Indenture Trustee undertakes to perform such duties and only such duties as
      are
      specifically set forth in this Indenture and shall not be liable except for
      the
      performance of such duties and obligations as are specifically set forth in
      this
      Indenture and no implied covenants or obligations shall be read into this
      Indenture against the Indenture Trustee; and

     

    (ii)  in
      the
      absence of bad faith on its part, the Indenture 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 Indenture Trustee and
      on
      their face conforming to the requirements of this Indenture; however, the
      Indenture Trustee shall examine the certificates and opinions to determine
      whether or not they conform on their face to the requirements of this
      Indenture.

     

    (c)  The
      Indenture Trustee may not be relieved from liability for its own negligent
      action, its own negligent failure to act, its own willful misconduct or its
      own
      bad faith, except that:

     

    (i)  this
      paragraph does not limit the effect of paragraph (a) of this
      Section;

     

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

     

    (iii)  the
      Indenture Trustee shall not be liable with respect to any action it takes or
      omits to take in good faith in accordance with this Indenture or upon a
      direction received by it from the requisite Noteholders pursuant to Article
      Five; and

     

    (iv)  the
      Indenture Trustee shall not be required to take notice or be deemed to have
      notice or knowledge of (a) any failure by the Issuer to comply with its
      obligations hereunder or in the Operative Agreements or (b) any Default or
      Event
      of Default, unless a Responsible Officer of the Indenture Trustee assigned
      to
      and working in its corporate trust department obtains actual knowledge of such
      Default or Event of Default or shall have received written notice thereof.
      In
      the absence of such actual knowledge or notice, the Indenture Trustee may
      conclusively assume that there is no Default or Event of Default.

     

    (d)  Every
      provision of this Indenture that in any way relates to the Indenture Trustee
      is
      subject to the provisions of this Section.

     

    (e)  The
      Indenture Trustee shall not be liable for indebtedness evidenced by or arising
      under any of the Operative Agreements, including principal of or interest on
      the
      Notes, or interest on any money received by it except as the Indenture Trustee
      may agree in writing with the Issuer.

     

    (f)  Money
      held in trust by the Indenture Trustee need not be segregated from other funds
      except to the extent required by law or the terms of this Indenture or the
      Transfer and Servicing Agreement.

     

    (g)  No
      provision of this Indenture shall require the Indenture Trustee to expend,
      advance or risk its own funds or otherwise incur 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 reasonable grounds to believe that repayment
      of such funds or adequate indemnity against such risk or liability is not
      reasonably assured to it provided,
      however,
      that the
      Indenture Trustee shall not refuse or fail to perform any of its duties
      hereunder solely as a result of nonpayment of its normal fees and
      expenses.

     

    (h)  Every
      provision of this Indenture or any Operative Agreement relating to the conduct
      or affecting the liability of or affording protection to the Indenture Trustee
      shall be subject to the provisions of this Section, Section 6.02 and to the
      provisions of the TIA.

     

    (i)  The
      Indenture Trustee shall execute and deliver the Transfer and Servicing Agreement
      and perform its duties thereunder.

     

    (j)  The
      Indenture Trustee shall not have any duty or obligation to manage, make any
      payment with respect to, register, record, sell, dispose of, or otherwise deal
      with the Collateral, or to otherwise take or refrain from taking any action
      under, or in connection with, any document contemplated hereby to which the
      Indenture Trustee is a party, except as expressly provided (i) in accordance
      with the powers granted to and the authority conferred upon the Indenture
      Trustee pursuant to this Agreement or any other Operative Agreement, and (ii)
      in
      accordance with any document or instruction delivered to the Indenture Trustee
      pursuant to the terms of this Agreement; and no implied duties or obligations
      shall be read into this Agreement or any Operative Agreement against the
      Indenture Trustee. The Indenture Trustee agrees that it will, at the cost and
      expense of the Issuer, promptly take all action as may be necessary to discharge
      any liens on any part of the Collateral that result from actions by, or claims
      against itself (in its individual capacity, and not in the capacity of Indenture
      Trustee) that are not related to the administration of the
      Collateral.

     

    (k)  Neither
      the Indenture Trustee nor the Trust Administrator shall have any liability
      or
      responsibility for the acts or omissions of the other Person, it being
      understood that this Indenture shall not be construed to render them agents
      of
      one another.

     

    (l)  In
      order
      to comply with laws, rules, regulations and executive orders in effect from
      time
      to time applicable to banking institutions, including those relating to the
      funding of terrorist activities and money laundering (“Applicable Law”),
      the Indenture Trustee is required to obtain, verify and record certain
      information relating to individuals and entities which maintain a business
      relationship with the Indenture Trustee. Accordingly, each of the parties
      agrees to provide to the Indenture Trustee upon its request from time to
      time such identifying information and documentation as may be available for
      such
      party in order to enable the Indenture Trustee to comply with Applicable
      Law.

     

    Section
      6.02  Rights
      of Indenture Trustee.
      (a)
      The
      Indenture Trustee may rely on any document believed by it to be genuine and
      to
      have been signed or presented by the proper person. The Indenture Trustee need
      not investigate any fact or matter stated in the document.

     

    (b)  Before
      the Indenture Trustee acts or refrains from acting, it may require an Officer’s
      Certificate or an Opinion of Counsel, which shall not be at the expense of
      the
      Indenture Trustee. The Indenture Trustee shall not be liable for any action
      it
      takes or omits to take in good faith in reliance on an Officer’s Certificate or
      Opinion of Counsel. The right of the Indenture Trustee to perform any
      discretionary act enumerated in this Indenture or in any Operative Agreement
      shall not be construed as a duty and the Indenture Trustee shall not be
      answerable for other than its negligence or willful misconduct in the
      performance of such act.

     

    (c)  The
      Indenture Trustee may execute any of the trusts or powers hereunder or perform
      any duties hereunder either directly or by or through agents or attorneys or
      a
      custodian or nominee.

     

    (d)  The
      Indenture Trustee shall not be liable for any action it takes or omits to take
      in good faith which it believes to be authorized or within its rights or powers;
      provided, that the Indenture Trustee’s conduct does not constitute willful
      misconduct, negligence or bad faith.

     

    (e)  The
      Indenture Trustee may consult with counsel, and any Opinion of Counsel with
      respect to legal matters relating to this Indenture, any Operative Agreement
      and
      the Notes shall be full and complete authorization and protection from liability
      in respect to any action taken, omitted or suffered by it hereunder in good
      faith and in accordance with any Opinion of Counsel of such
      counsel.

     

    (f)  In
      the
      event that the Indenture Trustee is also acting as Custodian hereunder or under
      any Operative Agreement, the rights and protections afforded to the Indenture
      Trustee pursuant to this Article Six shall be afforded to such
      Custodian.

     

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

     

    Section
      6.03  Individual
      Rights of Indenture Trustee.
      The
      Indenture Trustee in its individual or any other capacity may become the owner
      or pledgee of Notes and may otherwise deal with the Issuer or its Affiliates
      with the same rights it would have if it were not Indenture Trustee. Any Paying
      Agent, Note Registrar, co-registrar or co-paying agent may do the same with
      like
      rights. However, the Indenture Trustee must comply with Section
      6.11.

     

    Section
      6.04  Indenture
      Trustee’s Disclaimer.
      The
      Indenture Trustee shall not be responsible for and makes no representation
      as to
      the validity or adequacy of any of the Operative Agreements or the Notes or
      the
      sufficiency of the Collateral; it shall not be accountable for the Issuer’s use
      of the proceeds from the Notes, and it shall not be responsible for any
      statement of the Issuer or the Servicer in this Indenture, any Operative
      Agreement or in any other document issued in connection with the sale of the
      Notes or in the Notes.

     

    Section
      6.05  Notice
      of Defaults.
      If a
      Default occurs and is continuing and if a Responsible Officer of the Indenture
      Trustee has actual knowledge thereof, the Indenture Trustee shall give prompt
      written notice thereof to each Noteholder.

     

    Section
      6.06  Reports
      by
      Trust
      Administrator to Holders.
      The
      Trust Administrator shall deliver to each Noteholder such information with
      respect to the Notes as may be required to enable such holder to prepare its
      federal and state income tax returns and shall file such information returns
      with the Internal Revenue Service with respect to payments or accruals of
      interest on the Notes as are required to be filed under the Code or applicable
      Treasury Regulations.

     

    Section
      6.07  Compensation
      and Indemnity.
      The
      Indenture Trustee shall be entitled, as compensation for its services, a fee
      to
      be paid by the Master Servicer as provided in a separate agreement between
      such
      parties. The Indenture Trustee’s compensation shall not be limited by any law on
      compensation of a trustee of an express trust. The Indenture Trustee and any
      co-trustee shall be reimbursed on behalf of the Issuer from funds in the
      Collection Account, as provided in the Transfer and Servicing Agreement, for
      all
      reasonable ordinary out-of-pocket expenses incurred or made by it, including
      costs of collection, in addition to the compensation for its services (as
      provided in the Transfer and Servicing Agreement). Reimbursable expenses under
      this Section shall include the reasonable compensation and expenses,
      disbursements and advances of the Indenture Trustee’s agents, counsel,
      accountants and experts. The Issuer shall indemnify the Indenture Trustee,
      any
      co-trustee and their respective employees, directors and agents, as provided
      in
      the Transfer and Servicing Agreement and from funds in the Collection Account,
      against any and all claim, loss, liability or expense (including attorneys’
fees) incurred by it in connection with the administration of this trust and
      the
      performance of its duties hereunder or under any Operative Agreement. The
      Indenture Trustee or co-trustee, as applicable, shall notify the Issuer and
      the
      Trust Administrator promptly of any claim for which it may seek indemnity.
      Failure by the Indenture Trustee or the co-trustee, as applicable, to so notify
      the Issuer and the Trust Administrator shall not relieve the Issuer or the
      Trust
      Administrator of its obligations hereunder. The Issuer shall defend any such
      claim, and the Indenture Trustee and any co-trustee may have separate counsel
      and the fees and expenses of such counsel shall be payable on behalf of the
      Issuer from funds in the Collection Account. The Issuer shall not be required
      to
      reimburse any expense or indemnify against any loss, liability or expense
      incurred by the Indenture Trustee or any co-trustee, as applicable, through
      the
      Indenture Trustee’s or co-trustee’s, as the case may be, own willful misconduct,
      negligence or bad faith.

     

    The
      Issuer’s obligations to the Indenture Trustee and any co-trustee pursuant to
      this Section shall survive the resignation or removal of the Indenture Trustee
      and the termination of discharge of this Indenture. When the Indenture Trustee
      or any co-trustee incurs expenses after the occurrence of a Default specified
      in
      Section 5.01(iv) or (vi) with respect to the Issuer, the expenses are intended
      to constitute expenses of administration under Title 11 of the United States
      Code or any other applicable federal or state bankruptcy, insolvency or similar
      law.

     

    Section
      6.08  Replacement
      of Indenture Trustee.
      No
      resignation or removal of the Indenture Trustee and no appointment of a
      successor Indenture Trustee shall become effective until the acceptance of
      appointment by the successor Indenture Trustee pursuant to this Section. The
      Indenture Trustee may resign at any time by giving 30 days’ written notice
      thereof to the Depositor, the Issuer, each Noteholder and each Rating Agency.
      The Issuer shall remove the Indenture Trustee if:

     

    (i)  the
      Indenture Trustee fails to comply with Section 6.11;

     

    (ii)  the
      Indenture Trustee is adjudged bankrupt or insolvent;

     

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

     

    (iv)  the
      Indenture Trustee otherwise becomes incapable of acting.

     

    If
      the
      Indenture Trustee resigns or is removed or if a vacancy exists in the office
      of
      the Indenture Trustee for any reason (the Indenture Trustee in such event being
      referred to herein as the retiring Indenture Trustee), the Issuer shall promptly
      appoint a successor Indenture Trustee that satisfies the eligibility
      requirements of Section 6.11.

     

    The
      resigning or removed Indenture Trustee agrees to cooperate with any successor
      Indenture Trustee in effecting the termination of the resigning or removed
      Indenture Trustee’s responsibilities and rights hereunder and shall promptly
      provide such successor Indenture Trustee all documents and records reasonably
      requested by it to enable it to assume the Indenture Trustee’s functions
      hereunder.

     

    A
      successor Indenture Trustee shall deliver a written acceptance of its
      appointment to the retiring Indenture Trustee and to the Issuer. Thereupon
      the
      resignation or removal of the retiring Indenture Trustee shall become effective,
      and the successor Indenture Trustee shall have all the rights, powers and duties
      of the Indenture Trustee under this Indenture. The successor Indenture Trustee
      shall mail a notice of its succession to Noteholders. The retiring Indenture
      Trustee shall promptly transfer all property held by it as Indenture Trustee
      to
      the successor Indenture Trustee.

     

    If
      a
      successor Indenture Trustee does not take office after the retiring Indenture
      Trustee resigns or is removed, the retiring Indenture Trustee, the Issuer or
      the
      Holders of a majority in Outstanding Balance of the Notes may petition any
      court
      of competent jurisdiction for the appointment of a successor Indenture
      Trustee.

     

    If
      the
      Indenture Trustee fails to comply with Section 6.11, any Noteholder may petition
      any court of competent jurisdiction for the removal of the Indenture Trustee
      and
      the appointment of a successor Indenture Trustee.

     

    Section
      6.09  Successor
      Indenture Trustee or Trust Administrator by Merger.
      (a)
      If the
      Indenture Trustee or Trust Administrator consolidates with, merges or converts
      into, or transfers all or substantially all its corporate trust business or
      assets to, another corporation or banking association, as applicable, the
      resulting, surviving or transferee corporation without any further act shall
      be
      the successor Indenture Trustee or successor Trust Administrator, as the case
      may be; provided, that such corporation or banking association shall be
      otherwise qualified and eligible hereunder and under any other Operative
      Document. The Indenture Trustee shall provide each Rating Agency prior written
      notice of any such transaction.

     

    (b)  In
      case
      at the time such successor or successors by merger, conversion or consolidation
      shall succeed to the Trust Administrator, for any of the Notes which have been
      authenticated by the Trust Administrator but not delivered, such successor
      Trust
      Administrator may adopt the certificate of authentication of any predecessor
      trust administrator and deliver such Notes so authenticated; and in case at
      that
      time any of the Notes shall not have been authenticated, any successor Trust
      Administrator may authenticate such Notes either in the name of any predecessor
      hereunder or in the name of the successor Trust Administrator; and in all such
      cases such certificates shall have the full force which it is anywhere in the
      Notes or in this Indenture provided that the certificate of the Trust
      Administrator shall have.

     

    Section
      6.10  Appointment
      of Co-Indenture Trustee or Separate Indenture Trustee.
      (a)
      Notwithstanding any other provisions of this Indenture, at any time, for the
      purpose of meeting any legal requirement of any jurisdiction in which any part
      of the Collateral may at the time be located, the Indenture Trustee shall have
      the power and may execute and deliver all instruments to appoint one or more
      Persons to act as a co-trustee or co-trustees, or separate trustee or separate
      trustees, of all or any part of the Trust, and to vest in such Person or
      Persons, in such capacity and for the benefit of the Noteholders, such title
      to
      the Collateral, or any part hereof, and, subject to the other provisions of
      this
      Section, such powers, duties, obligations, rights and trusts as the Indenture
      Trustee may consider necessary or desirable. No co-trustee or separate trustee
      hereunder shall be required to meet the terms of eligibility as a successor
      trustee under Section 6.11 and no notice to Noteholders of the appointment
      of
      any co-trustee or separate trustee shall be required under Section 6.08
      hereof.

     

    (b)  Every
      separate trustee and co-trustee shall, to the extent permitted by law, be
      appointed and act subject to the following provisions and
      conditions:

     

    (i)  all
      rights, powers, duties and obligations conferred or imposed upon the Indenture
      Trustee shall be conferred or imposed upon and exercised or performed by the
      Indenture Trustee and such separate trustee or co-trustee jointly (it being
      understood that such separate trustee or co-trustee is not authorized to act
      separately without the Indenture Trustee joining in such act), except to the
      extent that under any law of any jurisdiction in which any particular act or
      acts are to be performed the Indenture Trustee shall be incompetent or
      unqualified to perform such act or acts, in which event such rights, powers,
      duties and obligations (including the holding of title to the Collateral or
      any
      portion thereof in any such jurisdiction) shall be exercised and performed
      singly by such separate trustee or co-trustee, but solely at the direction
      of
      the Indenture Trustee;

     

    (ii)  no
      trustee hereunder shall be personally liable by reason of any act or omission
      of
      any other trustee hereunder; and

     

    (iii)  the
      Indenture Trustee may at any time accept the resignation of or remove any
      separate trustee or co-trustee.

     

    (c)  Any
      notice, request or other writing given to the Indenture Trustee shall be deemed
      to have been given to each of the then separate trustees and co-trustees, as
      effectively as if given to each of them. Every instrument appointing any
      separate trustee or co-trustee shall refer to this Indenture and the conditions
      of this Article Six. Each separate trustee and co-trustee, upon its acceptance
      of the trusts conferred, shall be vested with the estates or property specified
      in its instrument of appointment, either jointly with the Indenture Trustee
      or
      separately, as may be provided therein, subject to all the provisions of this
      Indenture, specifically including every provision of this Indenture relating
      to
      the conduct of, affecting the liability of, or affording protection to, the
      Indenture Trustee. Every such instrument shall be filed with the Indenture
      Trustee.

     

    (d)  Any
      separate trustee or co-trustee may at any time constitute the Indenture Trustee,
      its agent or attorney-in-fact with full power and authority, to the extent
      not
      prohibited by law, to do any lawful act under or in respect of this Indenture
      on
      its behalf and in its name. If any separate trustee or co-trustee shall die,
      become incapable of acting, resign or be removed, all of its estates,
      properties, rights, remedies and trusts shall vest in and be exercised by the
      Indenture Trustee, to the extent permitted by law, without the appointment
      of a
      new or successor trustee.

     

    Section
      6.11  Eligibility;
      Disqualification.
      The
      Indenture Trustee shall at all times (i) satisfy the requirements of TIA Section
      310(a), (ii) have a combined capital and surplus of at least $100,000,000 as
      set
      forth in its most recently published annual report of condition, (iii) have
      a
      long-term debt rating equivalent to “A” or better by the Rating Agencies or be
      otherwise acceptable to the Rating Agencies and (iv) not be an Affiliate of
      the
      Issuer or the Owner Trustee. The Indenture Trustee shall comply with TIA Section
      310(b), including the optional provision permitted by the second sentence of
      TIA
      Section 310(b)(9); provided, however, that there shall be excluded from the
      operation of TIA Section 310(b)(1) any indenture or indentures under which
      other
      securities of the Issuer are outstanding if the requirements for such exclusion
      set forth in TIA Section 310(b)(1) are met.

     

    Section
      6.12  Representations
      and Warranties.
      The
      Indenture Trustee hereby represents that:

     

    (a)  the
      Indenture Trustee is duly organized and validly existing as a national banking
      association in good standing under the laws of the United States with power
      and
      authority to own its properties and to conduct its business as such properties
      are currently owned and such business is presently conducted;

     

    (b)  the
      Indenture Trustee has the power and authority to execute and deliver this
      Indenture and to carry out its terms; and the execution, delivery and
      performance of this Indenture have been duly authorized by the Indenture Trustee
      by all necessary corporate action;

     

    (c)  the
      consummation of the transactions contemplated by this Indenture and the
      fulfillment of the terms hereof do not conflict with, result in any breach
      of
      any of the terms and provisions of, or constitute (with or without notice or
      lapse of time) a default under the articles of organization or bylaws of the
      Indenture Trustee or, to the knowledge of the Indenture Trustee, any material
      agreement or other instrument to which the Indenture Trustee is a party or
      by
      which it is bound; and

     

    (d)  to
      the
      Indenture Trustee’s best knowledge, there are no proceedings or investigations
      pending or threatened before any court, regulatory body, administrative agency
      or other governmental instrumentality having jurisdiction over the Indenture
      Trustee: (i) asserting the invalidity of this Indenture, (ii) seeking to prevent
      the consummation of any of the transactions contemplated by this Indenture
      or
      (iii) seeking any determination or ruling that might materially and adversely
      affect the performance by the Indenture Trustee of its obligations under, or
      the
      validity or enforceability of, this Indenture.

     

    Section
      6.13  Preferential
      Collection of Claims Against Issuer.
      The
      Indenture Trustee shall comply with TIA Section 311(a), excluding any creditor
      relationship listed in TIA Section 311(b). An Indenture Trustee which has
      resigned or been removed shall be subject to TIA Section 311(a) to the extent
      indicated.

     

    ARTICLE
      VII

     

    NOTEHOLDERS’
      LISTS AND REPORTS

     

    Section
      7.01  Note
      Registrar To Furnish to the Indenture Trustee the Names and Addresses of
      Noteholders.
      The
      Note Registrar will furnish or cause to be furnished to the Indenture Trustee
      at
      such times as the Indenture Trustee may request in writing, within 30 days
      after
      receipt by the Note Registrar of any such request, a list in such form as the
      Indenture Trustee may reasonably require, of the names and addresses of the
      Holders of Notes as of a date not more than 10 days prior to the time such
      list
      is furnished.

     

    Section
      7.02  Preservation
      of Information; Communications to Noteholders.
      (a)
      The
      Trust Administrator shall preserve, in as current a form as is reasonably
      practicable, the names and addresses of the Holders of Notes contained in the
      most recent list furnished to the Trust Administrator as provided in Section
      7.01 and the names and addresses of Holders of Notes received by the Trust
      Administrator in its capacity as Note Registrar. The Trust Administrator may
      destroy any list furnished to it as provided in such Section 7.01 upon receipt
      of a new list so furnished. If three or more Noteholders, or one or more Holders
      of a Class of Notes evidencing not less than 25% of the Outstanding Balance
      thereof (hereinafter referred to as “Applicants”), apply in writing to the Trust
      Administrator or the Indenture Trustee, and such application states that the
      Applicants desire to communicate with other holders with respect to their rights
      under this Indenture or under the Notes, then the Trust Administrator shall,
      within five Business Days after the receipt of such application, afford such
      Applicants access, during normal business hours, to the current list of Holders.
      Every Holder, by receiving and holding a Note, agrees with the Issuer, the
      Indenture Trustee and the Trust Administrator that neither the Issuer, the
      Indenture Trustee nor the Trust Administrator shall be held accountable by
      reason of the disclosure of any such information as to the names and addresses
      of the Holders under this Indenture, regardless of the source from which such
      information was derived.

     

    (b)  Noteholders
      may communicate pursuant to TIA Section 312(b) with other Noteholders with
      respect to their rights under this Indenture or under the Notes.

     

    (c)  The
      Issuer, the Indenture Trustee and the Trust Administrator shall have the
      protection of TIA Section 312(c).

     

    Section
      7.03  Reports
      by Issuer.
      (a) The
      Issuer shall:

     

    (i)  file
      with
      the Indenture Trustee and the Commission in accordance with the rules and
      regulations prescribed from time to time by the Commission such additional
      information, documents and reports with respect to compliance by the Issuer
      with
      the conditions and covenants of this Indenture as may be required from time
      to
      time by such rules and regulations. Delivery of such information, documents
      and
      reports to the Indenture Trustee is for informational purposes only and the
      Indenture Trustee’s receipt of such reports shall not constitute constructive
      notice of any information contained therein or determinable from information
      contained therein, including the Issuer’s compliance with any of its covenants
      hereunder (as to which the Indenture Trustee is entitle to rely exclusively
      on
      Officers’ Certificates); and

     

    (ii)  supply
      to
      the Trust Administrator (and the Trust Administrator shall transmit by mail
      to
      all Noteholders described in TIA Section 313(c)) such summaries of any
      information, documents and reports required to be filed by the Issuer pursuant
      to clause (i) of this Section 7.03(a) and by rules and regulations prescribed
      from time to time by the Commission.

     

    (b)  Unless
      the Issuer otherwise determines, the fiscal year of the Issuer shall end on
      December 31 of each year.

     

    Section
      7.04  Reports
      by Indenture Trustee.
      If
      required by TIA Section 313(a), within 60 days after each March 1, beginning
      with March 1, 2006, the Indenture Trustee shall
      mail to each Noteholder as required by TIA Section 313(c) a brief report dated
      as of such date that complies with TIA Section 313(a). The Indenture Trustee
      also shall comply with TIA Section 313(b).

     

    A
      copy of
      each report at the time of its mailing to Noteholders shall be filed by the
      Indenture Trustee with the Commission and each securities exchange, if any,
      on
      which the Notes are listed. The Issuer shall notify the Indenture Trustee if
      and
      when the Notes are listed on any securities exchange.

     

    ARTICLE
      VIII

     

    ACCOUNTS,
      DISBURSEMENTS AND RELEASES

     

    Section
      8.01  Collection
      of Money.
      Except
      as otherwise expressly provided herein, the Indenture Trustee may demand payment
      or delivery of, and shall receive and collect (or direct such funds to the
      Trust
      Administrator), directly and without intervention or assistance of any fiscal
      agent or other intermediary, all money and other property payable to or
      receivable by the Indenture Trustee pursuant to this Indenture. The Trust
      Administrator shall apply all such money received by it as provided in this
      Indenture. Except as otherwise expressly provided in this Indenture, if any
      default occurs in the making of any payment or performance under any agreement
      or instrument that is part of the Collateral, the Indenture Trustee may take
      such action as may be appropriate to enforce such payment or performance,
      including the institution and prosecution of appropriate Proceedings. Any such
      action shall be without prejudice to any right to claim a Default or Event
      of
      Default under this Indenture and any right to proceed thereafter as provided
      in
      Article Five.

     

    Section
      8.02  Collection
      Account.
      On each
      Payment Date and Redemption Date, the Paying Agent (or, if the Trust
      Administrator acts as Paying Agent, the Trust Administrator) shall distribute
      all amounts on deposit in the Collection Account as provided in Sections 5.08
      and 6.02 of the Transfer and Servicing Agreement. On the Closing Date and on
      each anniversary of the Closing Date, the Trust Administrator shall pay from
      its
      own funds the Owner Trustee’s annual fee.

     

    Section
      8.03  Release
      of Collateral.
      (a)
      Subject
      to the payment of its fees and expenses pursuant to Section 6.07, the Indenture
      Trustee may, and when required by the provisions of this Indenture and the
      Transfer and Servicing Agreement shall, execute instruments to release property
      from the lien of this Indenture, or convey the Indenture Trustee’s interest in
      the same, in a manner and under circumstances that are not inconsistent with
      the
      provisions of this Indenture. No party relying upon an instrument executed
      by
      the Indenture Trustee as provided in this Article Eight shall be bound to
      ascertain the Indenture Trustee’s authority, inquire into the satisfaction of
      any conditions precedent or see to the application of any monies.

     

    (b)  The
      Indenture Trustee shall, at such time as the Trust Administrator notifies the
      Indenture Trustee in writing that there are no Notes outstanding and all sums
      due to the Noteholders pursuant to the Transfer and Servicing Agreement and
      all
      fees and expenses of the Indenture Trustee, the Master Servicer, the Trust
      Administrator and the Custodian pursuant to this Indenture or any other
      Operative Agreement have been paid, release any remaining portion of the
      Collateral that secured the Notes from the lien of this Indenture and the Trust
      Administrator shall release to the Issuer or any other Person entitled thereto
      any funds then on deposit in the Trust Account. The Indenture Trustee shall
      release property from the lien of this Indenture pursuant to this subsection
      (b)
      only upon receipt of an Issuer Request accompanied by an Officer’s Certificate,
      an Opinion of Counsel and (if required by the TIA) Independent Certificates
      in
      accordance with TIA Sections 314(c) and 314(d)(1) meeting the applicable
      requirements of Section 11.01 hereof.

     

    ARTICLE
      IX

     

    SUPPLEMENTAL
      INDENTURES

     

    Section
      9.01  Supplemental
      Indentures Without Consent of Noteholders.
      (a)
      Without
      the consent of the Holders of any Notes but with prior notice to each Rating
      Agency, the Issuer and the Indenture Trustee, when authorized by an Issuer
      Order, at any time and from time to time, may enter into one or more indentures
      supplemental hereto (which shall conform to the provisions of the Trust
      Indenture Act as in force at the date of the execution thereof), in form
      satisfactory to the Indenture Trustee, for any of the following
      purposes:

     

    (i)  to
      correct or amplify the description of any property at any time subject to the
      lien of this Indenture, or better to assure, convey and confirm unto the
      Indenture Trustee any property subject or required to be subjected to the lien
      of this Indenture, or to subject to the lien of this Indenture additional
      property;

     

    (ii)  to
      evidence the succession, in compliance with the applicable provisions hereof,
      of
      another person to the Issuer, and the assumption by any such successor of the
      covenants of the Issuer herein and in the Notes contained;

     

    (iii)  to
      add to
      the covenants of the Issuer, for the benefit of the Holders of the Notes, or
      to
      surrender any right or power herein conferred upon the Issuer;

     

    (iv)  to
      convey, transfer, assign, mortgage or pledge any property to or with the
      Indenture Trustee;

     

    (v)  (A)
      to
      cure any ambiguity, (B) to correct or supplement any provision herein or in
      any
      supplemental indenture that may be inconsistent with any other provisions herein
      or in any supplemental indenture or to conform the provisions hereof to those
      of
      the Prospectus, (C) to obtain or maintain a rating for a Class of Notes from
      a
      nationally recognized statistical rating organization, (D) to make any other
      provisions with respect to matters or questions arising under this Indenture;
      provided,
      however,
      that no
      such supplemental indenture entered into pursuant to clause (D) of this
      subparagraph (v) shall adversely affect in any material respect the interests
      of
      any Holder not consenting thereto;

     

    (vi)  to
      evidence and provide for the acceptance of the appointment hereunder by a
      successor trustee with respect to the Notes and to add to or change any of
      the
      provisions of this Indenture as shall be necessary to facilitate the
      administration of the trusts hereunder by more than one trustee, pursuant to
      the
      requirements of Article Six; or

     

    (vii)  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
      TIA
      or under any similar federal statute hereafter enacted and to add to this
      Indenture such other provisions as may be expressly required by the
      TIA.

     

    provided,
      however,
      that no
      such supplemental indenture shall be entered into unless the Indenture Trustee
      shall have received an Opinion of Counsel stating that as a result of such
      supplemental indenture, the Trust will not be subject to federal income tax
      as
      long as an entity that qualifies as a REIT under the Code holds directly, or
      indirectly through one or more Qualified REIT Subsidiaries or a Disregarded
      Entity, a 100% ownership interest in the Ownership Certificate, and the
      Indenture Trustee receives an Officer’s Certificate from the Holder of the
      Ownership Certificate that the Holder of the Ownership Certificate either
      qualifies as a REIT, a Qualified REIT Subsidiary or a Disregarded Entity under
      the Code and the Holder of the Ownership Certificate holds a 100% ownership
      Interest in the Ownership Certificate.

     

    The
      Indenture Trustee is hereby authorized to join in the execution of any such
      supplemental indenture and to make any further appropriate agreements and
      stipulations that may be therein contained.

     

    (b)  A
      letter
      from each Rating Agency addressed and delivered to the Indenture Trustee to
      the
      effect that any supplemental indenture entered into pursuant to this Section
      9.01 will not cause the then-current ratings on the Notes to be qualified,
      reduced or withdrawn shall constitute conclusive evidence that such amendment
      does not adversely affect in any material respect the interests of the
      Noteholders.

     

    Section
      9.02  Supplemental
      Indentures with Consent of Noteholders.
      The
      Issuer and the Indenture Trustee, when authorized by an Issuer Order, also
      may,
      with prior notice to each Rating Agency and with the consent of the Holders
      of
      not less than 66-2/3% of the Outstanding Balance of the Notes, by Act of such
      Holders delivered to the Issuer and the Indenture Trustee, enter into an
      indenture or indentures supplemental hereto for the purpose of adding any
      provisions to or changing in any manner or eliminating any of the provisions
      of
      this Indenture or of modifying in any manner the rights of the Holders of the
      Notes under this Indenture; provided, however,
      that no
      such supplemental indenture shall, adversely affect the interests of the
      Noteholders without the consent of the Holder of each Outstanding Note affected
      thereby (i) reduce in any manner the amount of, or delay the timing of, payments
      in respect of any Note, (ii) alter the obligations of the Servicer to make
      an
      Advance or alter the servicing standards set forth in the Transfer and Servicing
      Agreement or the Servicing Agreement, (iii) reduce the aforesaid percentages
      of
      Notes the Holders of which are required to consent to any such supplemental
      indenture, without the consent of the Holders of all Notes affected thereby,
      or
      (iv) permit the creation of any lien ranking prior to or on a parity with the
      lien of this Indenture with respect to any part of the Collateral or, except
      as
      otherwise permitted or contemplated herein, terminate the lien of this Indenture
      on any property at any time subject hereto or deprive the Holder of any Note
      of
      the security provided by the lien of this Indenture and provided,
      further,
      that
      such action shall not, as evidenced by an Opinion of Counsel, subject the Trust
      to federal income tax as long as an entity that qualifies as a REIT under the
      Code holds directly, or indirectly through one or more Qualified REIT
      Subsidiaries or Disregarded Entities, a 100% ownership interest in the Ownership
      Certificate, and provided
      further,
      that
      the Indenture Trustee receives an Officer’s Certificate from the Holder of the
      Ownership Certificate that the Holder of the Ownership Certificate either
      qualifies as a REIT, a Qualified REIT Subsidiary or a Disregarded Entity under
      the Code and the Holder of the Ownership Certificate holds a 100% ownership
      Interest in the Ownership Certificate.

     

    The
      Indenture Trustee shall be entitled to conclusively rely on an Opinion of
      Counsel as to whether or not any Notes would be affected by any supplemental
      indenture and any such determination shall be conclusive upon the Holders of
      all
      Notes, whether theretofore or thereafter authenticated and delivered
      hereunder.

     

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

     

    Promptly
      after the execution by the Issuer and the Indenture Trustee of any supplemental
      indenture pursuant to this Section, the Issuer shall mail to the Holders of
      the
      Notes to which such amendment or supplemental indenture relates and each Rating
      Agency a notice setting forth in general terms the substance of such
      supplemental indenture. Any failure of the Indenture Trustee to mail such
      notice, or any defect therein, shall not, however, in any way impair or affect
      the validity of any such supplemental indenture.

     

    Section
      9.03  Execution
      of Supplemental Indentures.
      In
      executing, or permitting the additional trusts created by, any supplemental
      indenture permitted by this Article Nine or the modification thereby of the
      trusts created by this Indenture, the Indenture Trustee shall be entitled to
      receive, and subject to Section 6.02, shall be fully protected in relying upon,
      in addition to the documents required under Section 11.01, an Opinion of Counsel
      to the effect provided in Section 9.07. The Indenture Trustee may, but shall
      not
      be obligated to, enter into any such supplemental indenture that affects the
      Indenture Trustee’s own rights, duties, liabilities or immunities under this
      Indenture or otherwise.

     

    Section
      9.04  Effect
      of Supplemental Indenture.
      Upon
      the execution of any supplemental indenture pursuant to the provisions hereof,
      this Indenture shall be and shall be deemed to be modified and amended in
      accordance therewith with respect to the Notes affected thereby, and the
      respective rights, limitations of rights, obligations, duties, liabilities
      and
      immunities under this Indenture of the Indenture Trustee, the Issuer and the
      Holders of the Notes shall thereafter be determined, exercised and enforced
      hereunder subject in all respects to such modifications and amendments, and
      all
      the terms and conditions of any such supplemental indenture shall be and be
      deemed to be part of the terms and conditions of this Indenture for any and
      all
      purposes.

     

    Section
      9.05  Conformity
      with Trust Indenture Act.
      Every
      amendment of this Indenture and every supplemental indenture executed pursuant
      to this Article Nine shall conform to the requirements of the Trust Indenture
      Act as then in effect so long as this Indenture shall then be qualified under
      the Trust Indenture Act.

     

    Section
      9.06  Reference
      in Notes to Supplemental Indentures.
      Notes
      authenticated and delivered after the execution of any supplemental indenture
      pursuant to this Article Nine may, and if required by the Trust Administrator
      shall, bear a notation in a form approved by the Trust Administrator as to
      any
      matter provided for in such supplemental indenture. If the Issuer or the Trust
      Administrator shall so determine, new Notes so modified as to conform, in the
      opinion of the Trust Administrator and the Issuer, to any such supplemental
      indenture may be prepared and executed by the Issuer and authenticated and
      delivered by the Trust Administrator in exchange for Outstanding
      Notes.

     

    Section
      9.07  Opinion
      of Counsel.
      In
      connection with any supplemental indenture pursuant to this Article Nine, the
      Indenture Trustee shall be entitled to receive an Opinion of Counsel to the
      effect that such supplemental indenture is authorized or permitted by this
      Indenture and that all conditions precedent to the execution of such
      supplemental indenture in accordance with the relevant provisions of this
      Article Nine have been met.

     

    Nothing
      in this Section shall be construed to require that any Person obtain the consent
      of the Indenture Trustee to any amendment or waiver or any provision of any
      document where the making of such amendment or the giving of such waiver without
      obtaining the consent of the Indenture Trustee is not prohibited by this
      Indenture or by the terms of the document that is the subject of the proposed
      amendment or waiver.

     

    ARTICLE
      X

     

    REDEMPTION
      OF NOTES

     

    Section
      10.01  Redemption.
      The
      Notes are subject to redemption pursuant to Section 9.02 of the Transfer and
      Servicing Agreement. The Issuer shall furnish each Rating Agency, the Trust
      Administrator and the Indenture Trustee notice of such redemption at least
      15
      days prior to such redemption. If the Notes are to be redeemed pursuant to
      Section 9.02 of the Transfer and Servicing Agreement, Aames Investment
      Acceptance Corporation or the Servicer, as applicable, shall furnish notice
      of
      its exercise of its option to redeem the Notes to the Indenture Trustee and
      the
      Trust Administrator not later than 15 days prior to the applicable Redemption
      Date and Aames Investment Acceptance Corporation or the Servicer, as applicable,
      shall deposit by 10:00 A.M. New York City time on the applicable Redemption
      Date
      with the Trust Administrator in the Collection Account the Termination Price
      of
      the Notes to be redeemed, whereupon all such Notes shall be due and payable
      on
      the applicable Redemption Date upon the furnishing of a notice complying with
      Section 10.02 hereof to each Holder of the Notes.

     

    Section
      10.02  Form
      of Redemption Notice.
      Notice
      of redemption under Section 10.01 shall be given by the Trust Administrator
      by
      first-class mail, postage prepaid, or by facsimile mailed or transmitted not
      later than 10 days prior to the applicable Redemption Date to each Holder of
      Notes, as of the close of business on the Record Date preceding the applicable
      Redemption Date, at such Holder’s address or facsimile number appearing in the
      Note Register.

     

    All
      notices of redemption shall state:

     

    (i)  the
      Redemption Date;

     

    (ii)  the
      Termination Price; and

     

    (iii)  the
      place
      where such Notes are to be surrendered for payment of the Termination Price
      (which shall be the office or agency of the Issuer to be maintained as provided
      in Section 3.02).

     

    Notice
      of
      redemption of the Notes shall be given by the Trust Administrator in the name
      and at the expense of the Issuer. Failure to give notice of redemption, or
      any
      defect therein, to any Holder of any Note shall not impair or affect the
      validity of the redemption of any other Note.

     

    Section
      10.03  Notes
      Payable on Applicable Redemption Date.
      The
      Notes or portions thereof to be redeemed shall, following notice of redemption
      as required under Section 10.02 (in the case of redemption pursuant to Section
      10.01) and remittance to the Trust Administrator of
      the
      Termination Price as required under Section 10.01, on the applicable Redemption
      Date become due and payable at the Termination Price and (unless the Issuer
      shall default in the payment of the Termination Price) no interest shall accrue
      on the Termination Price for any period after the date to which accrued interest
      is calculated for purposes of calculating the Termination Price.

     

    ARTICLE
      XI

     

    MISCELLANEOUS

     

    Section
      11.01  Compliance
      Certificates and Opinions, etc.
      Upon any
      application or request by the Issuer to the Indenture Trustee to take any action
      under any provision of this Indenture, the Issuer shall furnish to the Indenture
      Trustee: (i) 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, (ii) an Opinion of Counsel stating that in the opinion of such
      counsel all such conditions precedent, if any, have been complied with, and
      (iii) (if required by the TIA) an Independent Certificate from a firm of
      certified public accountants meeting the applicable requirements of this
      Section, 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, no additional certificate or opinion need be
      furnished.

     

    Every
      certificate or opinion with respect to compliance with a condition or covenant
      provided for in this Indenture shall include:

     

    (i)  a
      statement that each signatory of such certificate or opinion has read or has
      caused to be read such covenant or condition and the definitions herein relating
      thereto;

     

    (ii)  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;

     

    (iii)  a
      statement that, in the opinion of each such signatory, such signatory has made
      such examination or investigation as is necessary to enable such signatory
      to
      express an informed opinion as to whether or not such covenant or condition
      has
      been complied with; and

     

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

     

    Section
      11.02  Form
      of Documents Delivered to Indenture 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 Authorized Officer of the Issuer 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 such officer’s certificate or opinion is
      based are erroneous. Any such certificate of an Authorized Officer 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
      the
      Servicer, Sub-Servicer, the Depositor, the Issuer or the Trust Administrator,
      stating that the information with respect to such factual matters is in the
      possession of the Servicer, the Sub-Servicer, the Depositor, the Issuer or
      the
      Trust Administrator, unless such counsel knows, or in the exercise of reasonable
      care should know, 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.

     

    Whenever
      in this Indenture, in connection with any application or certificate or report
      to the Indenture Trustee, it is provided that the Issuer shall deliver any
      document as a condition of the granting of such application, or as evidence
      of
      the Issuer’s compliance with any term hereof, it is intended that the truth and
      accuracy, at the time of the granting of such application or at the effective
      date of such certificate or report (as the case may be), of the facts and
      opinions stated in such document shall in such case be conditions precedent
      to
      the right of the Issuer to have such application granted or to the sufficiency
      of such certificate or report. The foregoing shall not, however, be construed
      to
      affect the Indenture Trustee’s right to rely upon the truth and accuracy of any
      statement or opinion contained in any such document as provided in Article
      Six.

     

    Section
      11.03  Acts
      of Noteholders.
      (a)
      Any
      request, demand, authorization, direction, notice, consent, waiver or other
      action provided by this Indenture to be given or taken by Noteholders may be
      embodied in and evidenced by one or more instruments of substantially similar
      tenor signed by such Noteholders in person or by agents 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
      Indenture Trustee and, where it is hereby expressly required, to the Issuer.
      Such instrument or instruments (and the action embodied therein and evidenced
      thereby) are herein sometimes referred to as the “Act” of the Noteholders
      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 6.01) conclusive in favor
      of
      the Indenture Trustee and the Issuer, 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 in any manner that the Indenture Trustee deems sufficient.

     

    (c)  The
      ownership of Notes shall be proved by the Note Register.

     

    (d)  Any
      request, demand, authorization, direction, notice, consent, waiver or other
      action by the Holder of any Notes shall bind the Holder of every Note issued
      upon the registration thereof or in exchange therefor or in lieu thereof, in
      respect of anything done, omitted or suffered to be done by the Indenture
      Trustee or the Issuer in reliance thereon, whether or not notation of such
      action is made upon such Note.

     

    Section
      11.04  Notices,
      etc., to Indenture Trustee, Trust Administrator, Issuer and Rating
      Agencies.
      Any
      request, demand, authorization, direction, notice, consent, waiver or Act of
      Noteholders or other documents provided or permitted by this Indenture shall
      be
      in writing and if such request, demand, authorization, direction, notice,
      consent, waiver or Act of Noteholders is to be made upon, given or furnished
      to
      or filed with:

     

    (i)  the
      Indenture Trustee by any Noteholder or by the Issuer shall be sufficient for
      every purpose hereunder if in writing and mailed by certified mail, return
      receipt requested, to the Indenture Trustee at its Corporate Trust Office,
      or

     

    (ii)  the
      Trust
      Administrator by the Indenture Trustee, any Noteholder or by the Issuer shall
      be
      sufficient for every purpose hereunder if made, given, furnished or filed in
      writing to or with the Trust Administrator at its Corporate Trust Office,
      or

     

    (iii)  the
      Issuer by the Indenture Trustee, the Trust Administrator or any Noteholder
      shall
      be sufficient for every purpose hereunder if in writing and mailed first-class,
      postage prepaid to the Issuer addressed to the address provided in the Transfer
      and Servicing Agreement, or at any other address previously furnished in writing
      to the Indenture Trustee by the Issuer. The Issuer shall promptly transmit
      any
      notice received by it from the Noteholders to the Indenture
      Trustee.

     

    Notices
      required to be given to the Rating Agencies by the Issuer, the Indenture
      Trustee, the Trust Administrator or the Owner Trustee shall be in writing,
      personally delivered or mailed by certified mail, return receipt requested,
      to
      the address provided in the Transfer and Servicing Agreement or such other
      address as shall be designated by written notice to the other
      parties.

     

    Section
      11.05  Notices
      to Noteholders; Waiver.
      Where
      this Indenture provides for notice to Noteholders 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 Noteholder affected
      by
      such event, at such Holder’s address as it appears on the Note 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 Noteholders is given
      by mail, neither the failure to mail such notice nor any defect in any notice
      so
      mailed to any particular Noteholder shall affect the sufficiency of such notice
      with respect to other Noteholders, and any notice that is mailed in the manner
      herein provided shall conclusively be presumed to have been duly
      given.

     

    Where
      this Indenture provides for notice in any manner, such notice may be waived
      in
      writing by any 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 Noteholders shall be filed with the Indenture Trustee but such filing
      shall not be a condition precedent to the validity of any action taken in
      reliance upon such a waiver.

     

    In
      case,
      by reason of the suspension of regular mail service as a result of a strike,
      work stoppage or similar activity, it shall be impractical to mail notice of
      any
      event to Noteholders when such notice is required to be given pursuant to any
      provision of this Indenture, then any manner of giving such notice as shall
      be
      satisfactory to the Indenture Trustee shall be deemed to be a sufficient giving
      of such notice.

     

    Where
      this Indenture provides for notice to the Rating Agencies, failure to give
      such
      notice shall not affect any other rights or obligations created hereunder,
      and
      shall not under any circumstance constitute a Default or Event of
      Default.

     

    Section
      11.06  Conflict
      with Trust Indenture Act.
      If any
      provision hereof limits, qualifies or conflicts with another provision hereof
      that is required to be included in this Indenture by any of the provisions
      of
      the Trust Indenture Act, such required provision shall control.

     

    The
      provisions of TIA Sections 310 through 317 that impose duties on any person
      (including the provisions automatically deemed included herein unless expressly
      excluded by this Indenture) are a part of and govern this Indenture, whether
      or
      not physically contained herein.

     

    Section
      11.07  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
      11.08  Successors
      and Assigns.
      All
      covenants and agreements in this Indenture and the Notes by the Issuer shall
      bind its successors and assigns, whether so expressed or not. All agreements
      of
      the Indenture Trustee in this Indenture shall bind its successors, co-trustees
      and agents.

     

    Section
      11.09  Severability.
      In case
      any provision in this Indenture or in the Notes 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
      11.10  Benefits
      of Indenture and Consents of Noteholders.
      Nothing
      in this Indenture or in the Notes, express or implied, shall give to any Person,
      other than the parties hereto and their successors hereunder, the Owner Trustee
      and the Noteholders, any benefit or any legal or equitable right, remedy or
      claim under this Indenture. Each Noteholder and Note Owner, by acceptance of
      a
      Note or, in the case of a Note Owner, a beneficial interest in a Note, consents
      to and agrees to be bound by the terms and conditions of this
      Indenture.

     

    Section
      11.11  Legal
      Holidays.
      In any
      case where the date on which any payment is due shall not be a Business Day,
      then (notwithstanding any other provision of the Notes or this Indenture)
      payment need not be made on such date, but may be made on the next succeeding
      Business Day with the same force and effect as if made on the date on which
      nominally due, and no interest shall accrue for the period from and after any
      such nominal date.

     

    Section
      11.12  Governing
      Law.
      THIS
      INDENTURE SHALL BE GOVERNED BY AND CONSTRUED IN ACCORDANCE WITH THE LAWS OF
      THE
      STATE OF NEW YORK, WITHOUT REFERENCE TO ITS CONFLICT OF LAW PROVISIONS (OTHER
      THAN SECTION 5-1401 OF THE GENERAL OBLIGATIONS LAW), AND THE OBLIGATIONS, RIGHTS
      AND REMEDIES OF THE PARTIES HEREUNDER SHALL BE DETERMINED IN ACCORDANCE WITH
      SUCH LAWS.

     

    Section
      11.13  Counterparts.
      This
      Indenture 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.

     

    Section
      11.14  Recording
      of Indenture.
      If this
      Indenture is subject to recording in any appropriate public recording offices,
      such recording is to be effected by the Issuer and at its expense accompanied
      by
      an Opinion of Counsel (which may be counsel to the Indenture Trustee or any
      other counsel reasonably acceptable to the Indenture Trustee) to the effect
      that
      such recording is necessary either for the protection of the Noteholders or
      any
      other Person secured hereunder or for the enforcement of any right or remedy
      granted to the Indenture Trustee under this Indenture.

     

    Section
      11.15  Trust
      Obligations.
      (a)
      No
      recourse may be taken, directly or indirectly, with respect to the obligations
      of the Issuer, the Owner Trustee or the Indenture Trustee on the Notes or under
      this Indenture or any certificate or other writing delivered in connection
      herewith or therewith, against (i) the Indenture Trustee or the Owner Trustee
      in
      their respective individual capacities, (ii) any owner of a beneficial interest
      in the Issuer or (iii) any partner, owner, beneficiary, agent, officer,
      director, employee or agent of the Indenture Trustee or the Owner Trustee in
      its
      respective individual capacity, any holder of a beneficial interest in the
      Issuer, the Owner Trustee or the Indenture Trustee or of any successor or assign
      of the Indenture Trustee or the Owner Trustee in its individual capacity, except
      as any such Person may have expressly agreed (it being understood that the
      Indenture Trustee and the Owner Trustee have no such obligations in their
      respective individual capacities) and except that any such partner, owner or
      beneficiary shall be fully liable, to the extent provided by applicable law,
      for
      any unpaid consideration for stock, unpaid capital contribution or failure
      to
      pay any installment or call owing to such entity. For all purposes of this
      Indenture, in the performance of any duties or obligations of the Issuer
      hereunder, the Owner Trustee shall be subject to, and entitled to the benefits
      of, the terms and provisions of Articles VI, VII and VIII of the Trust
      Agreement.

     

    (b)  In
      addition, (i) this Indenture is executed and delivered by Wilmington Trust
      Company, not individually or personally but solely as Owner Trustee, in the
      exercise of the powers and authority conferred and vested in it, (ii) each
      of
      the representations, undertakings and agreements herein made on the part of
      the
      Issuer or the Owner Trustee is made and intended not as personal
      representations, undertakings and agreements by Wilmington Trust Company but
      is
      made and intended for the purpose for binding only the Trust, (iii) nothing
      herein contained shall be construed as creating any liability on Wilmington
      Trust Company, individually or personally, to perform any covenant either
      expressed or implied contained herein, all such liability, if any, being
      expressly waived by the Indenture Trustee and by any Person claiming by, through
      or under the Indenture Trustee, and (iv) under no circumstances shall Wilmington
      Trust Company be personally liable for the payment of any indebtedness or
      expenses of the Issuer or be liable for the breach or failure of any obligation,
      representation, warranty or covenant made or undertaken by the Issuer under
      this
      Indenture or the Operative Agreements.

     

    Section
      11.16  No
      Petition.
      The
      Indenture Trustee, by entering into this Indenture, and each Noteholder, by
      accepting a Note, hereby covenant and agree that they will not at any time
      institute against the Depositor or the Issuer, or join in any institution
      against the Depositor or the Issuer of, any bankruptcy, reorganization,
      arrangement, insolvency or liquidation proceedings, or other proceedings under
      any United States federal or state bankruptcy or similar law in connection
      with
      any obligations relating to the Notes, this Indenture or any of the Operative
      Agreements; provided,
      however,
      nothing
      contained herein shall prevent the Indenture Trustee from filing proofs of
      claim.

     

    Section
      11.17  Inspection.
      The
      Issuer agrees that, on reasonable prior notice, it will permit any
      representative of the Indenture Trustee, during the Issuer’s normal business
      hours, to examine all the books of account, records, reports and other papers
      of
      the Issuer, to make copies and extracts therefrom, to cause such books to be
      audited by Independent Public Accountants, and to discuss the Issuer’s affairs,
      finances and accounts with the Issuer’s officers, employees and Independent
      certified public accountants, all at such reasonable times and as often as
      may
      be reasonably requested. The Indenture Trustee shall, and shall cause its
      representatives to, hold in confidence all such information except to the extent
      disclosure may be required by law (and all reasonable applications for
      confidential treatment are unavailing) and except to the extent that the
      Indenture Trustee may reasonably determine that such disclosure is consistent
      with its obligations hereunder; provided,
      further,
      that
      the Indenture Trustee may disclose on a confidential basis any such information
      to its agents, attorneys and auditors in connection with the performance of
      its
      responsibilities hereunder.

     

    
      
        
        

        
        

      

      
        
        

        
          

        

      

      
        
        

        
          

        

      

    

    IN
      WITNESS WHEREOF, the Issuer, the Trust Administrator and the Indenture Trustee
      have caused this Indenture to be duly executed by their respective officers,
      thereunto duly authorized and duly attested, all as of the day and year first
      above written.

     

     

    
      	 	 	
               

            
	 	
              AAMES
                MORTGAGE INVESTMENT TRUST 2006-1, as Issuer

            
	 	 	 
	
              
 

            	By: 	WILMINGTON
              TRUST
              COMPANY, 
              not
                in its individual capacity but solely as

              Owner
                Trustee

            
	 	 	 
	 	By:  	/s/ Patricia
              A. Evans
	 	
              
Name:
              Patricia A. Evans
	 	Title:
              Vice President

    

     

    
      	 	 	 
	 	
              WELLS
                FARGO BANK, N.A.,

              as
                Trust Administrator

            
	 
 	 
 	 
 
	 	By:  	/s/ Sandra
              Whalen
	 	
              
Name:
              Sandra Whalen
	 	Title:
              Vice President

    

     

    
      	 	 	 
	 	
              DEUTSCHE
                BANK NATIONAL TRUST COMPANY, not in its individual capacity but solely
                as
                Indenture Trustee

            
	 
 	 
 	 
 
	 	By:  	/s/ Jennifer
              Hermansader
	 	
              
Name:
              Jennifer Hermansader
	 	Title:
              Associate 

    

     

    
      	 	 	 
	 	By:  	/s/ Barbara
              Campbell
	 	
              
Name:
              Barbara Campbell
	 	Title:
              Vice President

    

     

    
      
        
           

        

        
        

      

      
        
        

        
          

        

      

      
        
        

        
          

        

      

    

    EXHIBIT
      A

     

    FORMS
      OF
      NOTES

    

    

      UNLESS
        THIS NOTE IS PRESENTED BY AN AUTHORIZED REPRESENTATIVE OF THE DEPOSITORY
        TRUST
        COMPANY, A NEW YORK CORPORATION (“DTC”), TO THE ISSUER OR ITS AGENT FOR
        REGISTRATION OF TRANSFER, EXCHANGE OR PAYMENT, AND ANY NOTE ISSUED IS REGISTERED
        IN THE NAME OF CEDE & CO. OR IN SUCH OTHER NAME AS IS REQUESTED BY AN
        AUTHORIZED REPRESENTATIVE OF DTC (AND ANY PAYMENT IS MADE TO CEDE & CO. OR
        TO SUCH OTHER ENTITY AS IS REQUESTED BY AN AUTHORIZED REPRESENTATIVE OF DTC),
        ANY TRANSFER, PLEDGE OR OTHER USE HEREOF FOR VALUE OR OTHERWISE BY OR TO
        ANY
        PERSON IS WRONGFUL INASMUCH AS THE REGISTERED OWNER HEREOF, CEDE & CO., HAS
        AN INTEREST HEREIN.

       

      THIS
        NOTE
        DOES NOT EVIDENCE AN OBLIGATION OF OR AN INTEREST IN, AND IS NOT GUARANTEED
        BY,
        THE ISSUER, THE DEPOSITOR, THE MASTER SERVICER, THE SELLER, THE SERVICER,
        THE
        INDENTURE TRUSTEE, THE OWNER TRUSTEE, THE TRUST ADMINISTRATOR, OR ANY AFFILIATE
        OF ANY OF THEM AND IS NOT INSURED OR GUARANTEED BY ANY GOVERNMENTAL AGENCY
        OR
        PRIVATE INSURER.

       

      THE
        PRINCIPAL OF THIS NOTE IS PAYABLE IN INSTALLMENTS AS SET FORTH HEREIN.
        ACCORDINGLY, THE OUTSTANDING PRINCIPAL AMOUNT OF THIS NOTE AT ANY TIME MAY
        BE
        LESS THAN THE AMOUNT SHOWN ON THE FACE HEREOF.

       

      EACH
        PURCHASER OF THIS NOTE WILL BE DEEMED TO HAVE MADE THE REPRESENTATIONS AND
        AGREEMENTS SET FORTH IN SECTION 2.03 OF THE INDENTURE. ANY TRANSFER IN VIOLATION
        OF THE FOREGOING WILL BE OF NO FORCE AND EFFECT, WILL BE VOID AB
        INITIO,
        AND
        WILL NOT OPERATE TO TRANSFER ANY RIGHTS TO THE TRANSFEREE, NOTWITHSTANDING
        ANY
        INSTRUCTIONS TO THE CONTRARY TO THE ISSUER, THE INDENTURE TRUSTEE OR ANY
        INTERMEDIARY.

       

      THIS
        NOTE
        MAY NOT BE ACQUIRED BY A TRANSFEREE FOR, OR ON BEHALF OF AN EMPLOYEE BENEFIT
        PLAN OR OTHER RETIREMENT ARRANGEMENT THAT IS SUBJECT TO THE EMPLOYEE RETIREMENT
        INCOME SECURITY ACT OF 1974, AS AMENDED (“ERISA”) OR SECTION 4975 OF THE
        INTERNAL REVENUE CODE OF 1986, AS AMENDED (THE “CODE”) OR TO ANY SUBSTANTIALLY
        SIMILAR LAW (“SIMILAR LAW”) OR ANY ENTITY DEEMED TO HOLD THE PLAN ASSETS OF THE
        FOREGOING (“BENEFIT PLAN”), UNLESS THE TRANSFEREE REPRESENTS AND WARRANTS THAT
        THE ACQUISITION AND HOLDING OF THIS NOTE: (X) WILL NOT RESULT IN A NON-EXEMPT
        PROHIBITED TRANSACTION UNDER SECTION 406 OF ERISA OR SECTION 4975 OF THE
        CODE
        WHICH IS NOT COVERED BY PROHIBITED TRANSACTION CLASS EXEMPTION (“PTCE”) 84-14,
        PTCE 90-1, PTCE 91-38, PTCE 95-60, PTCE 96-23 OR SOME OTHER APPLICABLE EXEMPTION
        AND (Y) WILL NOT RESULT IN A NON-EXEMPT VIOLATION OF ANY SUBSTANTIALLY SIMILAR
        APPLICABLE LAW. EACH INVESTOR IN THIS NOTE WILL BE DEEMED TO MAKE THE FOREGOING
        REPRESENTATIONS AND WILL FURTHER BE DEEMED TO REPRESENT, WARRANT AND COVENANT
        THAT IT WILL NOT SELL, PLEDGE OR OTHERWISE TRANSFER THIS NOTE IN VIOLATION
        OF
        THE FOREGOING.

       

      

      

      AAMES
        MORTGAGE INVESTMENT TRUST 2006-1

      

       

      CLASS
        A-1
        NOTES

       

      

       

      
        	
                Aggregate
                  Class Principal Amount of

              	
                Class
                  Principal Amount

              
	
                the
                  Class A-1 Notes: $244,348,000.00

              	
                of
                  this Note: $244,348,000.00

                 

              
	
                Interest
                  Rate: Adjustable

              	
                Cut-off
                  Date: April 1, 2006

                 

              
	
                Number:
                  1

              	
                CUSIP
                  No.: 00252G AA 7

              

      

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

      AAMES
        MORTGAGE INVESTMENT TRUST 2006-1, a statutory trust organized and existing
        under
        the laws of the State of Delaware (herein referred to as the “Issuer”), for
        value received, hereby promises to pay to CEDE & CO., or registered assigns,
        the principal sum of TWO HUNDRED FORTY-FOUR MILLION THREE HUNDRED FORTY-EIGHT
        THOUSAND DOLLARS
        AND NO/100
        ($244,348,000.00) payable on each Payment Date in an amount equal to the
        result
        obtained by multiplying (A) the Percentage Interest evidenced by this Note
        (obtained by dividing the initial Class Principal Amount of this Note by
        the
        initial Class Principal Amount of all Class A-1 Notes, both as specified
        above)
        and (B) the amount payable on such Payment Date in respect of principal of
        the
        Class A-1 Notes pursuant to the Indenture dated as of April 1, 2006 (as amended
        and supplemented from time to time, the “Indenture”), among the Issuer, Wells
        Fargo Bank, N.A., as Trust Administrator (the “Trust Administrator”) and
        Deutsche Bank National Trust Company, as Indenture Trustee (the “Indenture
        Trustee”); provided,
        however,
        that
        the entire unpaid principal amount of this Note shall be due and payable
        on the
        Payment Date occurring in April 2036 (the “Maturity Date”) or as otherwise
        specified in the Indenture. Capitalized terms used but not defined herein
        have
        the meanings assigned to such terms in the Indenture or the Transfer and
        Servicing Agreement dated as of April 1, 2006 (as amended and supplemented
        from
        time to time, the “Transfer and Servicing Agreement”), by and among the Issuer,
        Financial Asset Securities Corp., as depositor (the “Depositor”), Wells Fargo
        Bank, N.A., as trust administrator (in such capacity, the “Trust Administrator”)
        and as master servicer (in such capacity, the “Master Servicer”), Aames Funding
        Corporation, as servicer, Aames Investment Corporation, as seller, and the
        Indenture Trustee, which agreements also contain rules as to construction
        that
        shall be applicable herein.

       

      The
        Issuer will pay interest on this Note at a per annum rate equal to the
        applicable Interest Rate, on the principal amount of this Note outstanding
        on
        the immediately preceding Payment Date (after giving effect to all payments
        of
        principal made on such preceding Payment Date) on each Payment Date until
        the
        principal of this Note is paid or made available for payment in
        full.

       

      Payments
        on this Note will be made on the 25th day of each month or, if such a day
        is not
        a Business Day, then on the next succeeding Business Day, commencing in May
        2006
        (each, a “Payment Date”), to the Person in whose name this Note is registered at
        the close of business on the Business Day immediately preceding such Payment
        Date (the “Record Date”), in an amount equal to the product of the Percentage
        Interest evidenced by this Note and the amount, if any, required to be
        distributed to all the Notes of the Class represented by this Note. All sums
        distributable on this Note are payable in 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. Such principal of and interest on this Note
        shall
        be paid in the manner specified on the reverse hereof.

       

      All
        payments made by the Issuer with respect to this Note shall be applied as
        provided in the Transfer and Servicing Agreement.

       

      Reference
        is made to the further provisions of this Note set forth on the reverse hereof,
        which shall have the same effect as though fully set forth on the face of
        this
        Note. 

       

      Unless
        the certificate of authentication hereon has been executed by the Trust
        Administrator whose name appears below by manual signature, this Note shall
        not
        be entitled to any benefit under the Indenture referred to on the reverse
        hereof, or be valid or obligatory for any purpose. 

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

      IN
        WITNESS WHEREOF, the Issuer has caused this instrument to be signed, manually
        or
        in facsimile, by its Authorized Officer, as of the date set forth below.
        

       

      AAMES
        MORTGAGE INVESTMENT TRUST 2006-1

       

      
        	 	
                By:

              	
                WILMINGTON
                  TRUST COMPANY, not in its individual 

                capacity
                  but solely as Owner Trustee under the Trust
                  Agreement

              

      

       

      By:
        _______________________________________

      Authorized
        Signatory 

       

      Dated:
        ____________________, 2006

       

      TRUST
        ADMINISTRATOR’S CERTIFICATE OF AUTHENTICATION

       

      This
        is
        one of the Notes designated above and referred to in the within-mentioned
        Indenture. 

       

      WELLS
        FARGO BANK, N.A.,

      not
        in
        its individual capacity but solely as Trust Administrator, 

       

      By:
        _______________________________________

      Authorized
        Signatory 

       

      Dated:
        ___________________, 2006

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

      AAMES
        MORTGAGE INVESTMENT TRUST 2006-1

       

      This
        Note
        is one of a duly authorized issue of Notes of the Issuer, all issued under
        the
        Indenture, to which Indenture and all indentures supplemental thereto reference
        is hereby made for a statement of the respective rights and obligations
        thereunder of the Issuer, the Indenture Trustee and the Holders of the Notes.
        To
        the extent that any provision of this Note contradicts or is inconsistent
        with
        the provisions of the Indenture, the provisions of the Indenture shall control
        and supersede such contradictory or inconsistent provision herein. This Note
        is
        subject to all terms of the Indenture. 

       

      The
        Class
        A-1, Class A-2, Class A-3 and Class A-4 Notes (the “Senior Notes”) are, and will
        be, equally and ratably secured by the collateral pledged as security therefor
        as provided in the Indenture. The rights of the Holders of the Class M-1,
        Class
        M-2, Class M-3, Class M-4, Class M-5, Class M-6, Class M-7, Class M-8, Class
        M-9, Class M-10 and Class M-11 Notes (the “Subordinate Notes”) to receive
        payments or distribution of interest and principal are, and will be, subordinate
        to the rights of the Holders of the Senior Notes to receive payments of interest
        and principal, respectively, as provided in the Indenture.

       

      Payments
        to each Noteholder shall be made upon written request made to the Note Registrar
        and Paying Agent at least five Business Days prior to the related Record
        Date by
        the Holder of a Note having an initial Note Principal Amount of not less
        than
        $2,500,000, by wire transfer in immediately available funds to an account
        specified in writing by such Noteholder. The final payment in retirement
        of this
        Note shall be made only upon surrender of this Note to the Note Registrar
        and
        Paying Agent at the office thereof specified in the notice to Noteholders
        of
        such final payment mailed prior to the Payment Date on which the final payment
        is expected to be made to the Holder thereof.

       

      As
        provided in the Indenture and subject to certain limitations set forth therein,
        the transfer of this Note may be registered by the Note Registrar upon surrender
        of this Note for registration of transfer at the office or agency designated
        by
        the Issuer pursuant to the Indenture, duly endorsed by, or accompanied by
        a
        written instrument of transfer in form satisfactory to the Note Registrar
        duly
        executed by, the Holder hereof or such Holder’s attorney duly authorized in
        writing, with such signature guaranteed by an “eligible guarantor institution”
meeting the requirements of the Note Registrar, which requirements include
        membership or participation in the Securities Transfer Agent’s Medallion Program
        (“STAMP”) or such other “signature guarantee program” as may be determined by
        the Note Registrar in addition to, or in substitution for, STAMP, all in
        accordance with the Securities Exchange Act of 1934, as amended, and thereupon
        one or more new Notes of authorized denominations and in the same aggregate
        principal amount will be issued to the designated transferee or transferees.
        No
        service charge will be charged for any registration of transfer or exchange
        of
        this Note, but the transferor may be required to pay a sum sufficient to
        cover
        any tax or other governmental charge that may be imposed in connection with
        any
        such registration of transfer or exchange. 

       

      The
        Notes
        will be issued in minimum denominations of $25,000 in original principal
        amount
        and integral multiples of $1 in excess thereof, provided, that the initial
        sale
        of any Notes shall be in increments of no less than $100,000.

       

      The
        Notes
        are subject to optional redemption in accordance with the Indenture and the
        Transfer and Servicing Agreement. 

       

      Each
        Noteholder and Note Owner, by acceptance of a Note or, in the case of a Note
        Owner, a beneficial interest in a Note, covenants and agrees that no recourse
        may be taken, directly or indirectly, with respect to the obligations of
        the
        Issuer, the Owner Trustee or the Indenture Trustee on the Notes or under
        the
        Indenture or any certificate or other writing delivered in connection therewith,
        against (i) the Indenture Trustee, or the Owner Trustee in their respective
        individual capacities, (ii) any owner of a beneficial interest in the Issuer
        or
        (iii) any partner, owner, beneficiary, agent, officer, director or employee
        of
        the Indenture Trustee or the Owner Trustee in its individual capacity, any
        holder of a beneficial interest in the Issuer, the Owner Trustee or the
        Indenture Trustee or of any successor or assign of the Indenture Trustee
        or the
        Owner Trustee in its individual capacity, except as any such Person may have
        expressly agreed and except that any such partner, owner or beneficiary shall
        be
        fully liable, to the extent provided by applicable law, for any unpaid
        consideration for stock, unpaid capital contribution or failure to pay any
        installment or call owing to such entity.

       

      Each
        Noteholder and Note Owner, by acceptance of a Note or, in the case of a Note
        Owner, a beneficial interest in a Note, covenants and agrees by accepting
        the
        benefits of the Indenture that such Noteholder or Note Owner will not at
        any
        time institute against the Depositor or the Issuer, or join in any institution
        against the Depositor or the Issuer of, any bankruptcy, reorganization,
        arrangement, insolvency or liquidation proceedings under any United States
        federal or state bankruptcy or similar law in connection with any obligations
        relating to the Notes, the Indenture or the other Operative Agreements.

       

      Each
        Noteholder and Note Owner, by acceptance of a Note or, in the case of a Note
        Owner, a beneficial interest in a Note, consents to and agrees to be bound
        by
        the terms and conditions of the Indenture.

       

      The
        Issuer has entered into the Indenture and this Note is issued with the intention
        that, for federal, state and local income, single business and franchise
        tax
        purposes, the Notes will qualify as indebtedness of the Issuer secured by
        the
        Collateral. Each Noteholder, by acceptance of a Note (and each Note Owner
        by
        acceptance of a beneficial interest in a Note), agrees to treat the Notes
        for
        all federal, state and local income tax purposes as indebtedness (except
        that
        any Note held by a person that, for federal income tax purposes, owns or
        is
        treated as owning a 100% Percentage Interest of the Ownership Certificate
        shall
        not be treated as outstanding indebtedness). 

       

      Prior
        to
        the due presentment for registration of transfer of this Note, the Issuer,
        the
        Indenture Trustee, the Trust Administrator, the Note Registrar, the Paying
        Agent
        and any agent of the Issuer, the Indenture Trustee, the Trust Administrator,
        the
        Note Registrar or the Paying Agent may treat the Person in whose name this
        Note
        (as of the day of determination or as of such other date as may be specified
        in
        the Indenture) is registered as the owner hereof for all purposes, whether
        or
        not this Note be overdue, and none of the Issuer, the Indenture Trustee,
        the
        Note Registrar, the Paying Agent or any such agent shall be affected by notice
        to the contrary. 

       

      The
        Indenture permits, with certain exceptions as therein provided, the amendment
        thereof by supplemental indenture and the modification of the rights and
        obligations of the Issuer and the rights of the Holders of the Notes under
        the
        Indenture at any time by the Depositor, the Issuer and the Indenture Trustee
        with the consent of the Holders of not less than 66-2/3% of the Outstanding
        Balance of the Notes for the purpose of adding any provisions to or changing
        in
        any manner or eliminating any of the provisions of the Indenture or of modifying
        in any manner the rights of the Noteholders. Any such consent or waiver by
        the
        Holder of this Note (or any one or more Predecessor Notes) shall be conclusive
        and binding upon such Holder and upon all future Holders of this Note and
        of any
        Note issued upon the registration of transfer hereof or in exchange hereof
        or in
        lieu hereof whether or not notation of such consent or waiver is made upon
        this
        Note. The Indenture also permits the amendment thereof, in certain limited
        circumstances, or the waiver of certain terms and conditions set forth in
        the
        Indenture, without the consent of Holders of the Notes issued thereunder.
        

       

      The
        term
“Issuer” as used in this Note includes any successor to the Issuer under the
        Indenture. 

       

      The
        Notes
        are issuable only in registered form in denominations as provided in the
        Indenture, subject to certain limitations therein set forth. 

       

      THIS
        NOTE
        AND THE INDENTURE SHALL BE GOVERNED BY AND CONSTRUED IN ACCORDANCE WITH THE
        LAWS
        OF THE STATE OF NEW YORK, WITHOUT REFERENCE TO ITS CONFLICT OF LAW PROVISIONS
        (OTHER THAN SECTION 5-1401 OF THE GENERAL OBLIGATIONS LAW), AND THE OBLIGATIONS,
        RIGHTS AND REMEDIES OF THE PARTIES HEREUNDER SHALL BE DETERMINED IN ACCORDANCE
        WITH SUCH LAWS. 

       

      No
        reference herein to the Indenture and no provision of this Note or of the
        Indenture shall alter or impair the obligation of the Issuer, which is absolute
        and unconditional, to pay the principal of and interest on this Note at the
        times, place and rate, and in the coin or currency herein prescribed.

       

      Anything
        herein to the contrary notwithstanding, except as expressly provided in the
        Operative Agreements, none of the Issuer in its individual capacity, the
        Owner
        Trustee in its individual capacity, the Indenture Trustee in its individual
        capacity, any owner of a beneficial interest in the Issuer, the Trust
        Administrator in its individual capacity, the Note Registrar, the Paying
        Agent
        or any of their respective partners, beneficiaries, agents, officers, directors,
        employees or successors or assigns shall be personally liable for, nor shall
        recourse be had to any of them for, the payment of principal of or interest
        on
        this Note or performance of, or omission to perform, any of the covenants,
        obligations or indemnifications contained in the Indenture. The Holder of
        this
        Note by its acceptance hereof agrees that, except as expressly provided in
        the
        Operative Agreements, in the case of an Event of Default under the Indenture,
        the Holder shall have no claim against any of the foregoing for any deficiency,
        loss or claim therefrom; provided,
        however,
        that
        nothing contained herein shall be taken to prevent recourse to, and enforcement
        against, the assets of the Issuer for any and all liabilities, obligations
        and
        undertakings contained in the Indenture or in this Note. 

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

      ASSIGNMENT

       

      Social
        Security or taxpayer I.D. or other identifying number of assignee:
        ________________________

       

      FOR
        VALUE
        RECEIVED, the undersigned hereby sells, assigns and transfers unto:

       

      
        	 	 	 

      

      (name
        and
        address of assignee)

       

      the
        within Note and all rights thereunder, and hereby irrevocably constitutes
        and
        appoints ________________________, attorney, to transfer said Note on the
        books
        kept for registration thereof, with full power of substitution in the premises.
        

       

      Dated:__________________________*/

       

      Signature
        Guaranteed: 

       

      ________________________________*/
        

       

      */
        NOTICE:
        The signature to this assignment must correspond with the name of the registered
        owner as it appears on the face of the within Note in every particular, without
        alteration, enlargement or any change whatever. Such signature must be
        guaranteed by an “eligible guarantor institution” meeting the requirements of
        the Note Registrar, which requirements include membership or participation
        in
        STAMP or such other “signature guarantee program” as may be determined by the
        Note Registrar in addition to, or in substitution for, STAMP, all in accordance
        with the Securities Exchange Act of 1934, as amended.

       

      

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

      UNLESS
        THIS NOTE IS PRESENTED BY AN AUTHORIZED REPRESENTATIVE OF THE DEPOSITORY
        TRUST
        COMPANY, A NEW YORK CORPORATION (“DTC”), TO THE ISSUER OR ITS AGENT FOR
        REGISTRATION OF TRANSFER, EXCHANGE OR PAYMENT, AND ANY NOTE ISSUED IS REGISTERED
        IN THE NAME OF CEDE & CO. OR IN SUCH OTHER NAME AS IS REQUESTED BY AN
        AUTHORIZED REPRESENTATIVE OF DTC (AND ANY PAYMENT IS MADE TO CEDE & CO. OR
        TO SUCH OTHER ENTITY AS IS REQUESTED BY AN AUTHORIZED REPRESENTATIVE OF DTC),
        ANY TRANSFER, PLEDGE OR OTHER USE HEREOF FOR VALUE OR OTHERWISE BY OR TO
        ANY
        PERSON IS WRONGFUL INASMUCH AS THE REGISTERED OWNER HEREOF, CEDE & CO., HAS
        AN INTEREST HEREIN.

       

      THIS
        NOTE
        DOES NOT EVIDENCE AN OBLIGATION OF OR AN INTEREST IN, AND IS NOT GUARANTEED
        BY,
        THE ISSUER, THE DEPOSITOR, THE MASTER SERVICER, THE SELLER, THE SERVICER,
        THE
        INDENTURE TRUSTEE, THE OWNER TRUSTEE, THE TRUST ADMINISTRATOR, OR ANY AFFILIATE
        OF ANY OF THEM AND IS NOT INSURED OR GUARANTEED BY ANY GOVERNMENTAL AGENCY
        OR
        PRIVATE INSURER.

       

      THE
        PRINCIPAL OF THIS NOTE IS PAYABLE IN INSTALLMENTS AS SET FORTH HEREIN.
        ACCORDINGLY, THE OUTSTANDING PRINCIPAL AMOUNT OF THIS NOTE AT ANY TIME MAY
        BE
        LESS THAN THE AMOUNT SHOWN ON THE FACE HEREOF.

       

      EACH
        PURCHASER OF THIS NOTE WILL BE DEEMED TO HAVE MADE THE REPRESENTATIONS AND
        AGREEMENTS SET FORTH IN SECTION 2.03 OF THE INDENTURE. ANY TRANSFER IN VIOLATION
        OF THE FOREGOING WILL BE OF NO FORCE AND EFFECT, WILL BE VOID AB
        INITIO,
        AND
        WILL NOT OPERATE TO TRANSFER ANY RIGHTS TO THE TRANSFEREE, NOTWITHSTANDING
        ANY
        INSTRUCTIONS TO THE CONTRARY TO THE ISSUER, THE INDENTURE TRUSTEE OR ANY
        INTERMEDIARY.

       

      THIS
        NOTE
        MAY NOT BE ACQUIRED BY A TRANSFEREE FOR, OR ON BEHALF OF AN EMPLOYEE BENEFIT
        PLAN OR OTHER RETIREMENT ARRANGEMENT THAT IS SUBJECT TO THE EMPLOYEE RETIREMENT
        INCOME SECURITY ACT OF 1974, AS AMENDED (“ERISA”) OR SECTION 4975 OF THE
        INTERNAL REVENUE CODE OF 1986, AS AMENDED (THE “CODE”) OR TO ANY SUBSTANTIALLY
        SIMILAR LAW (“SIMILAR LAW”) OR ANY ENTITY DEEMED TO HOLD THE PLAN ASSETS OF THE
        FOREGOING (“BENEFIT PLAN”), UNLESS THE TRANSFEREE REPRESENTS AND WARRANTS THAT
        THE ACQUISITION AND HOLDING OF THIS NOTE: (X) WILL NOT RESULT IN A NON-EXEMPT
        PROHIBITED TRANSACTION UNDER SECTION 406 OF ERISA OR SECTION 4975 OF THE
        CODE
        WHICH IS NOT COVERED BY PROHIBITED TRANSACTION CLASS EXEMPTION (“PTCE”) 84-14,
        PTCE 90-1, PTCE 91-38, PTCE 95-60, PTCE 96-23 OR SOME OTHER APPLICABLE EXEMPTION
        AND (Y) WILL NOT RESULT IN A NON-EXEMPT VIOLATION OF ANY SUBSTANTIALLY SIMILAR
        APPLICABLE LAW. EACH INVESTOR IN THIS NOTE WILL BE DEEMED TO MAKE THE FOREGOING
        REPRESENTATIONS AND WILL FURTHER BE DEEMED TO REPRESENT, WARRANT AND COVENANT
        THAT IT WILL NOT SELL, PLEDGE OR OTHERWISE TRANSFER THIS NOTE IN VIOLATION
        OF
        THE FOREGOING.

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

      

       

      AAMES
        MORTGAGE INVESTMENT TRUST 2006-1

      

       

      CLASS
        A-2
        NOTES

       

      

       

      
        	
                Aggregate
                  Class Principal Amount of

              	
                Class
                  Principal Amount

              
	
                the
                  Class A-2 Notes: $62,902,000.00

              	
                of
                  this Note: $62,902,000.00

                 

              
	
                Interest
                  Rate: Adjustable

              	
                Cut-off
                  Date: April 1, 2006

                 

              
	
                Number:
                  1

              	
                CUSIP
                  No.: 00252G AB 5

              

      

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

      AAMES
        MORTGAGE INVESTMENT TRUST 2006-1, a statutory trust organized and existing
        under
        the laws of the State of Delaware (herein referred to as the “Issuer”), for
        value received, hereby promises to pay to CEDE & CO., or registered assigns,
        the principal sum of SIXTY TWO MILLION DOLLARS NINE HUNDRED AND TWO THOUSAND
        DOLLARS AND NO/100 ($62,902,000.00)
        payable on each Payment Date in an amount equal to the result obtained by
        multiplying (A) the Percentage Interest evidenced by this Note (obtained
        by
        dividing the initial Class Principal Amount of this Note by the initial Class
        Principal Amount of all Class A-2 Notes, both as specified above) and (B)
        the
        amount payable on such Payment Date in respect of principal of the Class
        A-2
        Notes pursuant to the Indenture dated as of April 1, 2006 (as amended and
        supplemented from time to time, the “Indenture”), among the Issuer, Wells Fargo
        Bank, N.A., as Trust Administrator (the “Trust Administrator”) and Deutsche Bank
        National Trust Company, as Indenture Trustee (the “Indenture Trustee”);
provided,
        however,
        that
        the entire unpaid principal amount of this Note shall be due and payable
        on the
        Payment Date occurring in April 2036 (the “Maturity Date”) or as otherwise
        specified in the Indenture. Capitalized terms used but not defined herein
        have
        the meanings assigned to such terms in the Indenture or the Transfer and
        Servicing Agreement dated as of April 1, 2006 (as amended and supplemented
        from
        time to time, the “Transfer and Servicing Agreement”), by and among the Issuer,
        Financial Asset Securities Corp., as depositor (the “Depositor”), Wells Fargo
        Bank, N.A., as trust administrator (in such capacity, the “Trust Administrator”)
        and as master servicer (in such capacity, the “Master Servicer”), Aames Funding
        Corporation, as servicer, Aames Investment Corporation, as seller, and the
        Indenture Trustee, which agreements also contain rules as to construction
        that
        shall be applicable herein.

       

      The
        Issuer will pay interest on this Note at a per annum rate equal to the
        applicable Interest Rate, on the principal amount of this Note outstanding
        on
        the immediately preceding Payment Date (after giving effect to all payments
        of
        principal made on such preceding Payment Date) on each Payment Date until
        the
        principal of this Note is paid or made available for payment in
        full.

       

      Payments
        on this Note will be made on the 25th day of each month or, if such a day
        is not
        a Business Day, then on the next succeeding Business Day, commencing in May
        2006
        (each, a “Payment Date”), to the Person in whose name this Note is registered at
        the close of business on the Business Day immediately preceding such Payment
        Date (the “Record Date”), in an amount equal to the product of the Percentage
        Interest evidenced by this Note and the amount, if any, required to be
        distributed to all the Notes of the Class represented by this Note. All sums
        distributable on this Note are payable in 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. Such principal of and interest on this Note
        shall
        be paid in the manner specified on the reverse hereof.

       

      All
        payments made by the Issuer with respect to this Note shall be applied as
        provided in the Transfer and Servicing Agreement.

       

      Reference
        is made to the further provisions of this Note set forth on the reverse hereof,
        which shall have the same effect as though fully set forth on the face of
        this
        Note. 

       

      Unless
        the certificate of authentication hereon has been executed by the Trust
        Administrator whose name appears below by manual signature, this Note shall
        not
        be entitled to any benefit under the Indenture referred to on the reverse
        hereof, or be valid or obligatory for any purpose. 

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

      IN
        WITNESS WHEREOF, the Issuer has caused this instrument to be signed, manually
        or
        in facsimile, by its Authorized Officer, as of the date set forth below.
        

       

      AAMES
        MORTGAGE INVESTMENT TRUST 2006-1

       

      By: WILMINGTON
        TRUST COMPANY, 

      not
        in
        its individual capacity but solely as Owner 

      Trustee
        under the Trust Agreement

       

      By:
        ______________________________________

      Authorized
        Signatory 

       

      Dated:
        ____________________, 2006

       

      TRUST
        ADMINISTRATOR’S CERTIFICATE OF AUTHENTICATION

       

      This
        is
        one of the Notes designated above and referred to in the within-mentioned
        Indenture. 

       

      WELLS
        FARGO BANK, N.A.,

      not
        in
        its individual capacity but solely as Trust Administrator,

       

      By:
        ______________________________________

      Authorized
        Signatory 

       

      Dated:
        ___________________, 2006

       

      

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

      AAMES
        MORTGAGE INVESTMENT TRUST 2006-1

       

      This
        Note
        is one of a duly authorized issue of Notes of the Issuer, all issued under
        the
        Indenture, to which Indenture and all indentures supplemental thereto reference
        is hereby made for a statement of the respective rights and obligations
        thereunder of the Issuer, the Indenture Trustee and the Holders of the Notes.
        To
        the extent that any provision of this Note contradicts or is inconsistent
        with
        the provisions of the Indenture, the provisions of the Indenture shall control
        and supersede such contradictory or inconsistent provision herein. This Note
        is
        subject to all terms of the Indenture. 

       

      The
        Class
        A-1, Class A-2, Class A-3 and Class A-4 Notes (the “Senior Notes”) are, and will
        be, equally and ratably secured by the collateral pledged as security therefor
        as provided in the Indenture. The rights of the Holders of the Class M-1,
        Class
        M-2, Class M-3, Class M-4, Class M-5, Class M-6, Class M-7, Class M-8, Class
        M-9, Class M-10 and Class M-11 Notes (the “Subordinate Notes”) to receive
        payments or distribution of interest and principal are, and will be, subordinate
        to the rights of the Holders of the Senior Notes to receive payments of interest
        and principal, respectively, as provided in the Indenture.

       

      Payments
        to each Noteholder shall be made upon written request made to the Note Registrar
        and Paying Agent at least five Business Days prior to the related Record
        Date by
        the Holder of a Note having an initial Note Principal Amount of not less
        than
        $2,500,000, by wire transfer in immediately available funds to an account
        specified in writing by such Noteholder. The final payment in retirement
        of this
        Note shall be made only upon surrender of this Note to the Note Registrar
        and
        Paying Agent at the office thereof specified in the notice to Noteholders
        of
        such final payment mailed prior to the Payment Date on which the final payment
        is expected to be made to the Holder thereof.

       

      As
        provided in the Indenture and subject to certain limitations set forth therein,
        the transfer of this Note may be registered by the Note Registrar upon surrender
        of this Note for registration of transfer at the office or agency designated
        by
        the Issuer pursuant to the Indenture, duly endorsed by, or accompanied by
        a
        written instrument of transfer in form satisfactory to the Note Registrar
        duly
        executed by, the Holder hereof or such Holder’s attorney duly authorized in
        writing, with such signature guaranteed by an “eligible guarantor institution”
meeting the requirements of the Note Registrar, which requirements include
        membership or participation in the Securities Transfer Agent’s Medallion Program
        (“STAMP”) or such other “signature guarantee program” as may be determined by
        the Note Registrar in addition to, or in substitution for, STAMP, all in
        accordance with the Securities Exchange Act of 1934, as amended, and thereupon
        one or more new Notes of authorized denominations and in the same aggregate
        principal amount will be issued to the designated transferee or transferees.
        No
        service charge will be charged for any registration of transfer or exchange
        of
        this Note, but the transferor may be required to pay a sum sufficient to
        cover
        any tax or other governmental charge that may be imposed in connection with
        any
        such registration of transfer or exchange. 

       

      The
        Notes
        will be issued in minimum denominations of $25,000 in original principal
        amount
        and integral multiples of $1 in excess thereof, provided, that the initial
        sale
        of any Notes shall be in increments of no less than $100,000.

       

      The
        Notes
        are subject to optional redemption in accordance with the Indenture and the
        Transfer and Servicing Agreement. 

       

      Each
        Noteholder and Note Owner, by acceptance of a Note or, in the case of a Note
        Owner, a beneficial interest in a Note, covenants and agrees that no recourse
        may be taken, directly or indirectly, with respect to the obligations of
        the
        Issuer, the Owner Trustee or the Indenture Trustee on the Notes or under
        the
        Indenture or any certificate or other writing delivered in connection therewith,
        against (i) the Indenture Trustee, or the Owner Trustee in their respective
        individual capacities, (ii) any owner of a beneficial interest in the Issuer
        or
        (iii) any partner, owner, beneficiary, agent, officer, director or employee
        of
        the Indenture Trustee or the Owner Trustee in its individual capacity, any
        holder of a beneficial interest in the Issuer, the Owner Trustee or the
        Indenture Trustee or of any successor or assign of the Indenture Trustee
        or the
        Owner Trustee in its individual capacity, except as any such Person may have
        expressly agreed and except that any such partner, owner or beneficiary shall
        be
        fully liable, to the extent provided by applicable law, for any unpaid
        consideration for stock, unpaid capital contribution or failure to pay any
        installment or call owing to such entity.

       

      Each
        Noteholder and Note Owner, by acceptance of a Note or, in the case of a Note
        Owner, a beneficial interest in a Note, covenants and agrees by accepting
        the
        benefits of the Indenture that such Noteholder or Note Owner will not at
        any
        time institute against the Depositor or the Issuer, or join in any institution
        against the Depositor or the Issuer of, any bankruptcy, reorganization,
        arrangement, insolvency or liquidation proceedings under any United States
        federal or state bankruptcy or similar law in connection with any obligations
        relating to the Notes, the Indenture or the other Operative Agreements.

       

      Each
        Noteholder and Note Owner, by acceptance of a Note or, in the case of a Note
        Owner, a beneficial interest in a Note, consents to and agrees to be bound
        by
        the terms and conditions of the Indenture.

       

      The
        Issuer has entered into the Indenture and this Note is issued with the intention
        that, for federal, state and local income, single business and franchise
        tax
        purposes, the Notes will qualify as indebtedness of the Issuer secured by
        the
        Collateral. Each Noteholder, by acceptance of a Note (and each Note Owner
        by
        acceptance of a beneficial interest in a Note), agrees to treat the Notes
        for
        all federal, state and local income tax purposes as indebtedness (except
        that
        any Note held by a person that, for federal income tax purposes, owns or
        is
        treated as owning a 100% Percentage Interest of the Ownership Certificate
        shall
        not be treated as outstanding indebtedness). 

       

      Prior
        to
        the due presentment for registration of transfer of this Note, the Issuer,
        the
        Indenture Trustee, the Trust Administrator, the Note Registrar, the Paying
        Agent
        and any agent of the Issuer, the Indenture Trustee, the Trust Administrator,
        the
        Note Registrar or the Paying Agent may treat the Person in whose name this
        Note
        (as of the day of determination or as of such other date as may be specified
        in
        the Indenture) is registered as the owner hereof for all purposes, whether
        or
        not this Note be overdue, and none of the Issuer, the Indenture Trustee,
        the
        Note Registrar, the Paying Agent or any such agent shall be affected by notice
        to the contrary. 

       

      The
        Indenture permits, with certain exceptions as therein provided, the amendment
        thereof by supplemental indenture and the modification of the rights and
        obligations of the Issuer and the rights of the Holders of the Notes under
        the
        Indenture at any time by the Depositor, the Issuer and the Indenture Trustee
        with the consent of the Holders of not less than 66-2/3% of the Outstanding
        Balance of the Notes for the purpose of adding any provisions to or changing
        in
        any manner or eliminating any of the provisions of the Indenture or of modifying
        in any manner the rights of the Noteholders. Any such consent or waiver by
        the
        Holder of this Note (or any one or more Predecessor Notes) shall be conclusive
        and binding upon such Holder and upon all future Holders of this Note and
        of any
        Note issued upon the registration of transfer hereof or in exchange hereof
        or in
        lieu hereof whether or not notation of such consent or waiver is made upon
        this
        Note. The Indenture also permits the amendment thereof, in certain limited
        circumstances, or the waiver of certain terms and conditions set forth in
        the
        Indenture, without the consent of Holders of the Notes issued thereunder.

       

      The
        term
“Issuer” as used in this Note includes any successor to the Issuer under the
        Indenture. 

       

      The
        Notes
        are issuable only in registered form in denominations as provided in the
        Indenture, subject to certain limitations therein set forth. 

       

      THIS
        NOTE
        AND THE INDENTURE SHALL BE GOVERNED BY AND CONSTRUED IN ACCORDANCE WITH THE
        LAWS
        OF THE STATE OF NEW YORK, WITHOUT REFERENCE TO ITS CONFLICT OF LAW PROVISIONS
        (OTHER THAN SECTION 5-1401 OF THE GENERAL OBLIGATIONS LAW), AND THE OBLIGATIONS,
        RIGHTS AND REMEDIES OF THE PARTIES HEREUNDER SHALL BE DETERMINED IN ACCORDANCE
        WITH SUCH LAWS. 

       

      No
        reference herein to the Indenture and no provision of this Note or of the
        Indenture shall alter or impair the obligation of the Issuer, which is absolute
        and unconditional, to pay the principal of and interest on this Note at the
        times, place and rate, and in the coin or currency herein prescribed.

       

      Anything
        herein to the contrary notwithstanding, except as expressly provided in the
        Operative Agreements, none of the Issuer in its individual capacity, the
        Owner
        Trustee in its individual capacity, the Indenture Trustee in its individual
        capacity, any owner of a beneficial interest in the Issuer, the Trust
        Administrator in its individual capacity, the Note Registrar, the Paying
        Agent
        or any of their respective partners, beneficiaries, agents, officers, directors,
        employees or successors or assigns shall be personally liable for, nor shall
        recourse be had to any of them for, the payment of principal of or interest
        on
        this Note or performance of, or omission to perform, any of the covenants,
        obligations or indemnifications contained in the Indenture. The Holder of
        this
        Note by its acceptance hereof agrees that, except as expressly provided in
        the
        Operative Agreements, in the case of an Event of Default under the Indenture,
        the Holder shall have no claim against any of the foregoing for any deficiency,
        loss or claim therefrom; provided,
        however,
        that
        nothing contained herein shall be taken to prevent recourse to, and enforcement
        against, the assets of the Issuer for any and all liabilities, obligations
        and
        undertakings contained in the Indenture or in this Note. 

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

      ASSIGNMENT

       

      Social
        Security or taxpayer I.D. or other identifying number of assignee:
        ________________________

       

      FOR
        VALUE
        RECEIVED, the undersigned hereby sells, assigns and transfers unto:

       

      
        	 	 	 

      

      (name
        and
        address of assignee)

       

      the
        within Note and all rights thereunder, and hereby irrevocably constitutes
        and
        appoints ________________________, attorney, to transfer said Note on the
        books
        kept for registration thereof, with full power of substitution in the premises.
        

       

      Dated:__________________________*/

       

      Signature
        Guaranteed: 

       

      ________________________________*/
        

       

      

       

      */
        NOTICE:
        The signature to this assignment must correspond with the name of the registered
        owner as it appears on the face of the within Note in every particular, without
        alteration, enlargement or any change whatever. Such signature must be
        guaranteed by an “eligible guarantor institution” meeting the requirements of
        the Note Registrar, which requirements include membership or participation
        in
        STAMP or such other “signature guarantee program” as may be determined by the
        Note Registrar in addition to, or in substitution for, STAMP, all in accordance
        with the Securities Exchange Act of 1934, as amended.

       

      

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

      UNLESS
        THIS NOTE IS PRESENTED BY AN AUTHORIZED REPRESENTATIVE OF THE DEPOSITORY
        TRUST
        COMPANY, A NEW YORK CORPORATION (“DTC”), TO THE ISSUER OR ITS AGENT FOR
        REGISTRATION OF TRANSFER, EXCHANGE OR PAYMENT, AND ANY NOTE ISSUED IS REGISTERED
        IN THE NAME OF CEDE & CO. OR IN SUCH OTHER NAME AS IS REQUESTED BY AN
        AUTHORIZED REPRESENTATIVE OF DTC (AND ANY PAYMENT IS MADE TO CEDE & CO. OR
        TO SUCH OTHER ENTITY AS IS REQUESTED BY AN AUTHORIZED REPRESENTATIVE OF DTC),
        ANY TRANSFER, PLEDGE OR OTHER USE HEREOF FOR VALUE OR OTHERWISE BY OR TO
        ANY
        PERSON IS WRONGFUL INASMUCH AS THE REGISTERED OWNER HEREOF, CEDE & CO., HAS
        AN INTEREST HEREIN.

       

      THIS
        NOTE
        DOES NOT EVIDENCE AN OBLIGATION OF OR AN INTEREST IN, AND IS NOT GUARANTEED
        BY,
        THE ISSUER, THE DEPOSITOR, THE MASTER SERVICER, THE SELLER, THE SERVICER,
        THE
        INDENTURE TRUSTEE, THE OWNER TRUSTEE, THE TRUST ADMINISTRATOR, OR ANY AFFILIATE
        OF ANY OF THEM AND IS NOT INSURED OR GUARANTEED BY ANY GOVERNMENTAL AGENCY
        OR
        PRIVATE INSURER.

       

      THE
        PRINCIPAL OF THIS NOTE IS PAYABLE IN INSTALLMENTS AS SET FORTH HEREIN.
        ACCORDINGLY, THE OUTSTANDING PRINCIPAL AMOUNT OF THIS NOTE AT ANY TIME MAY
        BE
        LESS THAN THE AMOUNT SHOWN ON THE FACE HEREOF.

       

      EACH
        PURCHASER OF THIS NOTE WILL BE DEEMED TO HAVE MADE THE REPRESENTATIONS AND
        AGREEMENTS SET FORTH IN SECTION 2.03 OF THE INDENTURE. ANY TRANSFER IN VIOLATION
        OF THE FOREGOING WILL BE OF NO FORCE AND EFFECT, WILL BE VOID AB
        INITIO,
        AND
        WILL NOT OPERATE TO TRANSFER ANY RIGHTS TO THE TRANSFEREE, NOTWITHSTANDING
        ANY
        INSTRUCTIONS TO THE CONTRARY TO THE ISSUER, THE INDENTURE TRUSTEE OR ANY
        INTERMEDIARY.

       

      THIS
        NOTE
        MAY NOT BE ACQUIRED BY A TRANSFEREE FOR, OR ON BEHALF OF AN EMPLOYEE BENEFIT
        PLAN OR OTHER RETIREMENT ARRANGEMENT THAT IS SUBJECT TO THE EMPLOYEE RETIREMENT
        INCOME SECURITY ACT OF 1974, AS AMENDED (“ERISA”) OR SECTION 4975 OF THE
        INTERNAL REVENUE CODE OF 1986, AS AMENDED (THE “CODE”) OR TO ANY SUBSTANTIALLY
        SIMILAR LAW (“SIMILAR LAW”) OR ANY ENTITY DEEMED TO HOLD THE PLAN ASSETS OF THE
        FOREGOING (“BENEFIT PLAN”), UNLESS THE TRANSFEREE REPRESENTS AND WARRANTS THAT
        THE ACQUISITION AND HOLDING OF THIS NOTE: (X) WILL NOT RESULT IN A NON-EXEMPT
        PROHIBITED TRANSACTION UNDER SECTION 406 OF ERISA OR SECTION 4975 OF THE
        CODE
        WHICH IS NOT COVERED BY PROHIBITED TRANSACTION CLASS EXEMPTION (“PTCE”) 84-14,
        PTCE 90-1, PTCE 91-38, PTCE 95-60, PTCE 96-23 OR SOME OTHER APPLICABLE EXEMPTION
        AND (Y) WILL NOT RESULT IN A NON-EXEMPT VIOLATION OF ANY SUBSTANTIALLY SIMILAR
        APPLICABLE LAW. EACH INVESTOR IN THIS NOTE WILL BE DEEMED TO MAKE THE FOREGOING
        REPRESENTATIONS AND WILL FURTHER BE DEEMED TO REPRESENT, WARRANT AND COVENANT
        THAT IT WILL NOT SELL, PLEDGE OR OTHERWISE TRANSFER THIS NOTE IN VIOLATION
        OF
        THE FOREGOING.

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

      

       

      AAMES
        MORTGAGE INVESTMENT TRUST 2006-1

      

       

      CLASS
        A-3
        NOTES

       

      

       

      
        	
                Aggregate
                  Class Principal Amount of

              	
                Class
                  Principal Amount

              
	
                the
                  Class A-3 Notes: $127,232,000.00

              	
                of
                  this Note: $127,232,000.00

                 

              
	
                Interest
                  Rate: Adjustable

              	
                Cut-off
                  Date: April 1, 2006

                 

              
	
                Number:
                  1

              	
                CUSIP
                  No.: 00252G AC 3

              

      

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

      AAMES
        MORTGAGE INVESTMENT TRUST 2006-1, a statutory trust organized and existing
        under
        the laws of the State of Delaware (herein referred to as the “Issuer”), for
        value received, hereby promises to pay to CEDE & CO., or registered assigns,
        the principal sum of ONE HUNDRED TWENTY SEVEN MILLION TWO HUNDRED THIRTY
        TWO
        DOLLARS AND NO/100 ($127,232,000.00)
        payable on each Payment Date in an amount equal to the result obtained by
        multiplying (A) the Percentage Interest evidenced by this Note (obtained
        by
        dividing the initial Class Principal Amount of this Note by the initial Class
        Principal Amount of all Class A-3 Notes, both as specified above) and (B)
        the
        amount payable on such Payment Date in respect of principal of the Class
        A-3
        Notes pursuant to the Indenture dated as of April 1, 2006 (as amended and
        supplemented from time to time, the “Indenture”), among the Issuer, Wells Fargo
        Bank, N.A., as Trust Administrator (the “Trust Administrator”) and Deutsche Bank
        National Trust Company, as Indenture Trustee (the “Indenture Trustee”);
provided,
        however,
        that
        the entire unpaid principal amount of this Note shall be due and payable
        on the
        Payment Date occurring in April 2036 (the “Maturity Date”) or as otherwise
        specified in the Indenture. Capitalized terms used but not defined herein
        have
        the meanings assigned to such terms in the Indenture or the Transfer and
        Servicing Agreement dated as of April 1, 2006 (as amended and supplemented
        from
        time to time, the “Transfer and Servicing Agreement”), by and among the Issuer,
        Financial Asset Securities Corp., as depositor (the “Depositor”), Wells Fargo
        Bank, N.A., as trust administrator (in such capacity, the “Trust Administrator”)
        and as master servicer (in such capacity, the “Master Servicer”), Aames Funding
        Corporation, as servicer, Aames Investment Corporation, as seller, and the
        Indenture Trustee, which agreements also contain rules as to construction
        that
        shall be applicable herein.

       

      The
        Issuer will pay interest on this Note at a per annum rate equal to the
        applicable Interest Rate, on the principal amount of this Note outstanding
        on
        the immediately preceding Payment Date (after giving effect to all payments
        of
        principal made on such preceding Payment Date) on each Payment Date until
        the
        principal of this Note is paid or made available for payment in
        full.

       

      Payments
        on this Note will be made on the 25th day of each month or, if such a day
        is not
        a Business Day, then on the next succeeding Business Day, commencing in May
        2006
        (each, a “Payment Date”), to the Person in whose name this Note is registered at
        the close of business on the Business Day immediately preceding such Payment
        Date (the “Record Date”), in an amount equal to the product of the Percentage
        Interest evidenced by this Note and the amount, if any, required to be
        distributed to all the Notes of the Class represented by this Note. All sums
        distributable on this Note are payable in 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. Such principal of and interest on this Note
        shall
        be paid in the manner specified on the reverse hereof.

       

      All
        payments made by the Issuer with respect to this Note shall be applied as
        provided in the Transfer and Servicing Agreement.

       

      Reference
        is made to the further provisions of this Note set forth on the reverse hereof,
        which shall have the same effect as though fully set forth on the face of
        this
        Note. 

       

      Unless
        the certificate of authentication hereon has been executed by the Trust
        Administrator whose name appears below by manual signature, this Note shall
        not
        be entitled to any benefit under the Indenture referred to on the reverse
        hereof, or be valid or obligatory for any purpose. 

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

      IN
        WITNESS WHEREOF, the Issuer has caused this instrument to be signed, manually
        or
        in facsimile, by its Authorized Officer, as of the date set forth below.
        

       

      AAMES
        MORTGAGE INVESTMENT TRUST 2006-1

       

      By: WILMINGTON
        TRUST COMPANY, 

      not
        in
        its individual capacity but solely as Owner Trustee 

      under
        the
        Trust Agreement

       

      By:
        ________________________________________

      Authorized
        Signatory 

       

      Dated:
        ____________________, 2006

       

      TRUST
        ADMINISTRATOR’S CERTIFICATE OF AUTHENTICATION

       

      This
        is
        one of the Notes designated above and referred to in the within-mentioned
        Indenture. 

       

      WELLS
        FARGO BANK, N.A.,

      not
        in
        its individual capacity but solely as Trust Administrator,

       

      By:
        ________________________________________

      Authorized
        Signatory 

       

      Dated:
        ___________________, 2006

       

      

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

      AAMES
        MORTGAGE INVESTMENT TRUST 2006-1

       

      This
        Note
        is one of a duly authorized issue of Notes of the Issuer, all issued under
        the
        Indenture, to which Indenture and all indentures supplemental thereto reference
        is hereby made for a statement of the respective rights and obligations
        thereunder of the Issuer, the Indenture Trustee and the Holders of the Notes.
        To
        the extent that any provision of this Note contradicts or is inconsistent
        with
        the provisions of the Indenture, the provisions of the Indenture shall control
        and supersede such contradictory or inconsistent provision herein. This Note
        is
        subject to all terms of the Indenture. 

       

      The
        Class
        A-1, Class A-2, Class A-3 and Class A-4 Notes (the “Senior Notes”) are, and will
        be, equally and ratably secured by the collateral pledged as security therefor
        as provided in the Indenture. The rights of the Holders of the Class M-1,
        Class
        M-2, Class M-3, Class M-4, Class M-5, Class M-6, Class M-7, Class M-8, Class
        M-9, Class M-10 and Class M-11 Notes (the “Subordinate Notes”) to receive
        payments or distribution of interest and principal are, and will be, subordinate
        to the rights of the Holders of the Senior Notes to receive payments of interest
        and principal, respectively, as provided in the Indenture.

       

      Payments
        to each Noteholder shall be made upon written request made to the Note Registrar
        and Paying Agent at least five Business Days prior to the related Record
        Date by
        the Holder of a Note having an initial Note Principal Amount of not less
        than
        $2,500,000, by wire transfer in immediately available funds to an account
        specified in writing by such Noteholder. The final payment in retirement
        of this
        Note shall be made only upon surrender of this Note to the Note Registrar
        and
        Paying Agent at the office thereof specified in the notice to Noteholders
        of
        such final payment mailed prior to the Payment Date on which the final payment
        is expected to be made to the Holder thereof.

       

      As
        provided in the Indenture and subject to certain limitations set forth therein,
        the transfer of this Note may be registered by the Note Registrar upon surrender
        of this Note for registration of transfer at the office or agency designated
        by
        the Issuer pursuant to the Indenture, duly endorsed by, or accompanied by
        a
        written instrument of transfer in form satisfactory to the Note Registrar
        duly
        executed by, the Holder hereof or such Holder’s attorney duly authorized in
        writing, with such signature guaranteed by an “eligible guarantor institution”
meeting the requirements of the Note Registrar, which requirements include
        membership or participation in the Securities Transfer Agent’s Medallion Program
        (“STAMP”) or such other “signature guarantee program” as may be determined by
        the Note Registrar in addition to, or in substitution for, STAMP, all in
        accordance with the Securities Exchange Act of 1934, as amended, and thereupon
        one or more new Notes of authorized denominations and in the same aggregate
        principal amount will be issued to the designated transferee or transferees.
        No
        service charge will be charged for any registration of transfer or exchange
        of
        this Note, but the transferor may be required to pay a sum sufficient to
        cover
        any tax or other governmental charge that may be imposed in connection with
        any
        such registration of transfer or exchange. 

       

      The
        Notes
        will be issued in minimum denominations of $25,000 in original principal
        amount
        and integral multiples of $1 in excess thereof, provided, that the initial
        sale
        of any Notes shall be in increments of no less than $100,000.

       

      The
        Notes
        are subject to optional redemption in accordance with the Indenture and the
        Transfer and Servicing Agreement. 

       

      Each
        Noteholder and Note Owner, by acceptance of a Note or, in the case of a Note
        Owner, a beneficial interest in a Note, covenants and agrees that no recourse
        may be taken, directly or indirectly, with respect to the obligations of
        the
        Issuer, the Owner Trustee or the Indenture Trustee on the Notes or under
        the
        Indenture or any certificate or other writing delivered in connection therewith,
        against (i) the Indenture Trustee, or the Owner Trustee in their respective
        individual capacities, (ii) any owner of a beneficial interest in the Issuer
        or
        (iii) any partner, owner, beneficiary, agent, officer, director or employee
        of
        the Indenture Trustee or the Owner Trustee in its individual capacity, any
        holder of a beneficial interest in the Issuer, the Owner Trustee or the
        Indenture Trustee or of any successor or assign of the Indenture Trustee
        or the
        Owner Trustee in its individual capacity, except as any such Person may have
        expressly agreed and except that any such partner, owner or beneficiary shall
        be
        fully liable, to the extent provided by applicable law, for any unpaid
        consideration for stock, unpaid capital contribution or failure to pay any
        installment or call owing to such entity.

       

      Each
        Noteholder and Note Owner, by acceptance of a Note or, in the case of a Note
        Owner, a beneficial interest in a Note, covenants and agrees by accepting
        the
        benefits of the Indenture that such Noteholder or Note Owner will not at
        any
        time institute against the Depositor or the Issuer, or join in any institution
        against the Depositor or the Issuer of, any bankruptcy, reorganization,
        arrangement, insolvency or liquidation proceedings under any United States
        federal or state bankruptcy or similar law in connection with any obligations
        relating to the Notes, the Indenture or the other Operative Agreements.

       

      Each
        Noteholder and Note Owner, by acceptance of a Note or, in the case of a Note
        Owner, a beneficial interest in a Note, consents to and agrees to be bound
        by
        the terms and conditions of the Indenture.

       

      The
        Issuer has entered into the Indenture and this Note is issued with the intention
        that, for federal, state and local income, single business and franchise
        tax
        purposes, the Notes will qualify as indebtedness of the Issuer secured by
        the
        Collateral. Each Noteholder, by acceptance of a Note (and each Note Owner
        by
        acceptance of a beneficial interest in a Note), agrees to treat the Notes
        for
        all federal, state and local income tax purposes as indebtedness (except
        that
        any Note held by a person that, for federal income tax purposes, owns or
        is
        treated as owning a 100% Percentage Interest of the Ownership Certificate
        shall
        not be treated as outstanding indebtedness). 

       

      Prior
        to
        the due presentment for registration of transfer of this Note, the Issuer,
        the
        Indenture Trustee, the Trust Administrator, the Note Registrar, the Paying
        Agent
        and any agent of the Issuer, the Indenture Trustee, the Trust Administrator,
        the
        Note Registrar or the Paying Agent may treat the Person in whose name this
        Note
        (as of the day of determination or as of such other date as may be specified
        in
        the Indenture) is registered as the owner hereof for all purposes, whether
        or
        not this Note be overdue, and none of the Issuer, the Indenture Trustee,
        the
        Note Registrar, the Paying Agent or any such agent shall be affected by notice
        to the contrary. 

       

      The
        Indenture permits, with certain exceptions as therein provided, the amendment
        thereof by supplemental indenture and the modification of the rights and
        obligations of the Issuer and the rights of the Holders of the Notes under
        the
        Indenture at any time by the Depositor, the Issuer and the Indenture Trustee
        with the consent of the Holders of not less than 66-2/3% of the Outstanding
        Balance of the Notes for the purpose of adding any provisions to or changing
        in
        any manner or eliminating any of the provisions of the Indenture or of modifying
        in any manner the rights of the Noteholders. Any such consent or waiver by
        the
        Holder of this Note (or any one or more Predecessor Notes) shall be conclusive
        and binding upon such Holder and upon all future Holders of this Note and
        of any
        Note issued upon the registration of transfer hereof or in exchange hereof
        or in
        lieu hereof whether or not notation of such consent or waiver is made upon
        this
        Note. The Indenture also permits the amendment thereof, in certain limited
        circumstances, or the waiver of certain terms and conditions set forth in
        the
        Indenture, without the consent of Holders of the Notes issued thereunder.
        

       

      The
        term
“Issuer” as used in this Note includes any successor to the Issuer under the
        Indenture. 

       

      The
        Notes
        are issuable only in registered form in denominations as provided in the
        Indenture, subject to certain limitations therein set forth. 

       

      THIS
        NOTE
        AND THE INDENTURE SHALL BE GOVERNED BY AND CONSTRUED IN ACCORDANCE WITH THE
        LAWS
        OF THE STATE OF NEW YORK, WITHOUT REFERENCE TO ITS CONFLICT OF LAW PROVISIONS
        (OTHER THAN SECTION 5-1401 OF THE GENERAL OBLIGATIONS LAW), AND THE OBLIGATIONS,
        RIGHTS AND REMEDIES OF THE PARTIES HEREUNDER SHALL BE DETERMINED IN ACCORDANCE
        WITH SUCH LAWS. 

       

      No
        reference herein to the Indenture and no provision of this Note or of the
        Indenture shall alter or impair the obligation of the Issuer, which is absolute
        and unconditional, to pay the principal of and interest on this Note at the
        times, place and rate, and in the coin or currency herein prescribed.

       

      Anything
        herein to the contrary notwithstanding, except as expressly provided in the
        Operative Agreements, none of the Issuer in its individual capacity, the
        Owner
        Trustee in its individual capacity, the Indenture Trustee in its individual
        capacity, any owner of a beneficial interest in the Issuer, the Trust
        Administrator in its individual capacity, the Note Registrar, the Paying
        Agent
        or any of their respective partners, beneficiaries, agents, officers, directors,
        employees or successors or assigns shall be personally liable for, nor shall
        recourse be had to any of them for, the payment of principal of or interest
        on
        this Note or performance of, or omission to perform, any of the covenants,
        obligations or indemnifications contained in the Indenture. The Holder of
        this
        Note by its acceptance hereof agrees that, except as expressly provided in
        the
        Operative Agreements, in the case of an Event of Default under the Indenture,
        the Holder shall have no claim against any of the foregoing for any deficiency,
        loss or claim therefrom; provided,
        however,
        that
        nothing contained herein shall be taken to prevent recourse to, and enforcement
        against, the assets of the Issuer for any and all liabilities, obligations
        and
        undertakings contained in the Indenture or in this Note. 

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

      ASSIGNMENT

       

      Social
        Security or taxpayer I.D. or other identifying number of assignee:
        ________________________

       

      FOR
        VALUE
        RECEIVED, the undersigned hereby sells, assigns and transfers unto:

       

      
        	 	 	 

      

      (name
        and
        address of assignee)

       

      the
        within Note and all rights thereunder, and hereby irrevocably constitutes
        and
        appoints ________________________, attorney, to transfer said Note on the
        books
        kept for registration thereof, with full power of substitution in the premises.
        

       

      Dated:__________________________*/

       

      Signature
        Guaranteed: 

       

      ________________________________*/
        

       

      

       

      */
        NOTICE:
        The signature to this assignment must correspond with the name of the registered
        owner as it appears on the face of the within Note in every particular, without
        alteration, enlargement or any change whatever. Such signature must be
        guaranteed by an “eligible guarantor institution” meeting the requirements of
        the Note Registrar, which requirements include membership or participation
        in
        STAMP or such other “signature guarantee program” as may be determined by the
        Note Registrar in addition to, or in substitution for, STAMP, all in accordance
        with the Securities Exchange Act of 1934, as amended.

       

      

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

      UNLESS
        THIS NOTE IS PRESENTED BY AN AUTHORIZED REPRESENTATIVE OF THE DEPOSITORY
        TRUST
        COMPANY, A NEW YORK CORPORATION (“DTC”), TO THE ISSUER OR ITS AGENT FOR
        REGISTRATION OF TRANSFER, EXCHANGE OR PAYMENT, AND ANY NOTE ISSUED IS REGISTERED
        IN THE NAME OF CEDE & CO. OR IN SUCH OTHER NAME AS IS REQUESTED BY AN
        AUTHORIZED REPRESENTATIVE OF DTC (AND ANY PAYMENT IS MADE TO CEDE & CO. OR
        TO SUCH OTHER ENTITY AS IS REQUESTED BY AN AUTHORIZED REPRESENTATIVE OF DTC),
        ANY TRANSFER, PLEDGE OR OTHER USE HEREOF FOR VALUE OR OTHERWISE BY OR TO
        ANY
        PERSON IS WRONGFUL INASMUCH AS THE REGISTERED OWNER HEREOF, CEDE & CO., HAS
        AN INTEREST HEREIN.

       

      THIS
        NOTE
        DOES NOT EVIDENCE AN OBLIGATION OF OR AN INTEREST IN, AND IS NOT GUARANTEED
        BY,
        THE ISSUER, THE DEPOSITOR, THE MASTER SERVICER, THE SELLER, THE SERVICER,
        THE
        INDENTURE TRUSTEE, THE OWNER TRUSTEE, THE TRUST ADMINISTRATOR, OR ANY AFFILIATE
        OF ANY OF THEM AND IS NOT INSURED OR GUARANTEED BY ANY GOVERNMENTAL AGENCY
        OR
        PRIVATE INSURER.

       

      THE
        PRINCIPAL OF THIS NOTE IS PAYABLE IN INSTALLMENTS AS SET FORTH HEREIN.
        ACCORDINGLY, THE OUTSTANDING PRINCIPAL AMOUNT OF THIS NOTE AT ANY TIME MAY
        BE
        LESS THAN THE AMOUNT SHOWN ON THE FACE HEREOF.

       

      EACH
        PURCHASER OF THIS NOTE WILL BE DEEMED TO HAVE MADE THE REPRESENTATIONS AND
        AGREEMENTS SET FORTH IN SECTION 2.03 OF THE INDENTURE. ANY TRANSFER IN VIOLATION
        OF THE FOREGOING WILL BE OF NO FORCE AND EFFECT, WILL BE VOID AB
        INITIO,
        AND
        WILL NOT OPERATE TO TRANSFER ANY RIGHTS TO THE TRANSFEREE, NOTWITHSTANDING
        ANY
        INSTRUCTIONS TO THE CONTRARY TO THE ISSUER, THE INDENTURE TRUSTEE OR ANY
        INTERMEDIARY.

       

      THIS
        NOTE
        MAY NOT BE ACQUIRED BY A TRANSFEREE FOR, OR ON BEHALF OF AN EMPLOYEE BENEFIT
        PLAN OR OTHER RETIREMENT ARRANGEMENT THAT IS SUBJECT TO THE EMPLOYEE RETIREMENT
        INCOME SECURITY ACT OF 1974, AS AMENDED (“ERISA”) OR SECTION 4975 OF THE
        INTERNAL REVENUE CODE OF 1986, AS AMENDED (THE “CODE”) OR TO ANY SUBSTANTIALLY
        SIMILAR LAW (“SIMILAR LAW”) OR ANY ENTITY DEEMED TO HOLD THE PLAN ASSETS OF THE
        FOREGOING (“BENEFIT PLAN”), UNLESS THE TRANSFEREE REPRESENTS AND WARRANTS THAT
        THE ACQUISITION AND HOLDING OF THIS NOTE: (X) WILL NOT RESULT IN A NON-EXEMPT
        PROHIBITED TRANSACTION UNDER SECTION 406 OF ERISA OR SECTION 4975 OF THE
        CODE
        WHICH IS NOT COVERED BY PROHIBITED TRANSACTION CLASS EXEMPTION (“PTCE”) 84-14,
        PTCE 90-1, PTCE 91-38, PTCE 95-60, PTCE 96-23 OR SOME OTHER APPLICABLE EXEMPTION
        AND (Y) WILL NOT RESULT IN A NON-EXEMPT VIOLATION OF ANY SUBSTANTIALLY SIMILAR
        APPLICABLE LAW. EACH INVESTOR IN THIS NOTE WILL BE DEEMED TO MAKE THE FOREGOING
        REPRESENTATIONS AND WILL FURTHER BE DEEMED TO REPRESENT, WARRANT AND COVENANT
        THAT IT WILL NOT SELL, PLEDGE OR OTHERWISE TRANSFER THIS NOTE IN VIOLATION
        OF
        THE FOREGOING.

       

      

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

      

      AAMES
        MORTGAGE INVESTMENT TRUST 2006-1

      

       

      CLASS
        A-4
        NOTES

       

      

       

      
        	
                Aggregate
                  Class Principal Amount of

              	
                Class
                  Principal Amount

              
	
                the
                  Class A-4 Notes: $22,641,000.00

              	
                of
                  this Note: $22,641,000.00

                 

              
	
                Interest
                  Rate: Adjustable

              	
                Cut-off
                  Date: April 1, 2006

                 

              
	
                Number:
                  1

              	
                CUSIP
                  No.: 00252G AD 1

              

      

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

      AAMES
        MORTGAGE INVESTMENT TRUST 2006-1, a statutory trust organized and existing
        under
        the laws of the State of Delaware (herein referred to as the “Issuer”), for
        value received, hereby promises to pay to CEDE & CO., or registered assigns,
        the principal sum of TWENTY-TWO MILLION SIX HUNDRED FORTY-ONE
        THOUSAND DOLLARS
        AND NO/100 ($22,641,000.00)
        payable on each Payment Date in an amount equal to the result obtained by
        multiplying (A) the Percentage Interest evidenced by this Note (obtained
        by
        dividing the initial Class Principal Amount of this Note by the initial Class
        Principal Amount of all Class A-4 Notes, both as specified above) and (B)
        the
        amount payable on such Payment Date in respect of principal of the Class
        A-4
        Notes pursuant to the Indenture dated as of April 1, 2006 (as amended and
        supplemented from time to time, the “Indenture”), among the Issuer, Wells Fargo
        Bank, N.A., as Trust Administrator (the “Trust Administrator”) and Deutsche Bank
        National Trust Company, as Indenture Trustee (the “Indenture Trustee”);
provided,
        however,
        that
        the entire unpaid principal amount of this Note shall be due and payable
        on the
        Payment Date occurring in April 2036 (the “Maturity Date”) or as otherwise
        specified in the Indenture. Capitalized terms used but not defined herein
        have
        the meanings assigned to such terms in the Indenture or the Transfer and
        Servicing Agreement dated as of April 1, 2006 (as amended and supplemented
        from
        time to time, the “Transfer and Servicing Agreement”), by and among the Issuer,
        Financial Asset Securities Corp., as depositor (the “Depositor”), Wells Fargo
        Bank, N.A., as trust administrator (in such capacity, the “Trust Administrator”)
        and as master servicer (in such capacity, the “Master Servicer”), Aames Funding
        Corporation, as servicer, Aames Investment Corporation, as seller, and the
        Indenture Trustee, which agreements also contain rules as to construction
        that
        shall be applicable herein.

       

      The
        Issuer will pay interest on this Note at a per annum rate equal to the
        applicable Interest Rate, on the principal amount of this Note outstanding
        on
        the immediately preceding Payment Date (after giving effect to all payments
        of
        principal made on such preceding Payment Date) on each Payment Date until
        the
        principal of this Note is paid or made available for payment in
        full.

       

      Payments
        on this Note will be made on the 25th day of each month or, if such a day
        is not
        a Business Day, then on the next succeeding Business Day, commencing in May
        2006
        (each, a “Payment Date”), to the Person in whose name this Note is registered at
        the close of business on the Business Day immediately preceding such Payment
        Date (the “Record Date”), in an amount equal to the product of the Percentage
        Interest evidenced by this Note and the amount, if any, required to be
        distributed to all the Notes of the Class represented by this Note. All sums
        distributable on this Note are payable in 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. Such principal of and interest on this Note
        shall
        be paid in the manner specified on the reverse hereof.

       

      All
        payments made by the Issuer with respect to this Note shall be applied as
        provided in the Transfer and Servicing Agreement.

       

      Reference
        is made to the further provisions of this Note set forth on the reverse hereof,
        which shall have the same effect as though fully set forth on the face of
        this
        Note. 

       

      Unless
        the certificate of authentication hereon has been executed by the Trust
        Administrator whose name appears below by manual signature, this Note shall
        not
        be entitled to any benefit under the Indenture referred to on the reverse
        hereof, or be valid or obligatory for any purpose. 

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

      IN
        WITNESS WHEREOF, the Issuer has caused this instrument to be signed, manually
        or
        in facsimile, by its Authorized Officer, as of the date set forth below.
        

       

      AAMES
        MORTGAGE INVESTMENT TRUST 2006-1

       

      
        	 	
                By:

              	
                WILMINGTON
                  TRUST COMPANY, not in its individual 

                capacity
                  but solely as Owner Trustee under the Trust
                  Agreement

              

      

       

      By:
        ________________________________________

      Authorized
        Signatory 

       

      Dated:
        ____________________, 2006

       

      TRUST
        ADMINISTRATOR’S CERTIFICATE OF AUTHENTICATION

       

      This
        is
        one of the Notes designated above and referred to in the within-mentioned
        Indenture. 

       

      WELLS
        FARGO BANK, N.A.,

      not
        in
        its individual capacity but solely as Trust Administrator, 

       

      By:
        ________________________________________

      Authorized
        Signatory 

       

      Dated:
        ___________________, 2006

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

      AAMES
        MORTGAGE INVESTMENT TRUST 2006-1

       

      This
        Note
        is one of a duly authorized issue of Notes of the Issuer, all issued under
        the
        Indenture, to which Indenture and all indentures supplemental thereto reference
        is hereby made for a statement of the respective rights and obligations
        thereunder of the Issuer, the Indenture Trustee and the Holders of the Notes.
        To
        the extent that any provision of this Note contradicts or is inconsistent
        with
        the provisions of the Indenture, the provisions of the Indenture shall control
        and supersede such contradictory or inconsistent provision herein. This Note
        is
        subject to all terms of the Indenture. 

       

      The
        Class
        A-1, Class A-2, Class A-3 and Class A-4 Notes (the “Senior Notes”) are, and will
        be, equally and ratably secured by the collateral pledged as security therefor
        as provided in the Indenture. The rights of the Holders of the Class M-1,
        Class
        M-2, Class M-3, Class M-4, Class M-5, Class M-6, Class M-7, Class M-8, Class
        M-9, Class M-10 and Class M-11 Notes (the “Subordinate Notes”) to receive
        payments or distribution of interest and principal are, and will be, subordinate
        to the rights of the Holders of the Senior Notes to receive payments of interest
        and principal, respectively, as provided in the Indenture.

       

      Payments
        to each Noteholder shall be made upon written request made to the Note Registrar
        and Paying Agent at least five Business Days prior to the related Record
        Date by
        the Holder of a Note having an initial Note Principal Amount of not less
        than
        $2,500,000, by wire transfer in immediately available funds to an account
        specified in writing by such Noteholder. The final payment in retirement
        of this
        Note shall be made only upon surrender of this Note to the Note Registrar
        and
        Paying Agent at the office thereof specified in the notice to Noteholders
        of
        such final payment mailed prior to the Payment Date on which the final payment
        is expected to be made to the Holder thereof.

       

      As
        provided in the Indenture and subject to certain limitations set forth therein,
        the transfer of this Note may be registered by the Note Registrar upon surrender
        of this Note for registration of transfer at the office or agency designated
        by
        the Issuer pursuant to the Indenture, duly endorsed by, or accompanied by
        a
        written instrument of transfer in form satisfactory to the Note Registrar
        duly
        executed by, the Holder hereof or such Holder’s attorney duly authorized in
        writing, with such signature guaranteed by an “eligible guarantor institution”
meeting the requirements of the Note Registrar, which requirements include
        membership or participation in the Securities Transfer Agent’s Medallion Program
        (“STAMP”) or such other “signature guarantee program” as may be determined by
        the Note Registrar in addition to, or in substitution for, STAMP, all in
        accordance with the Securities Exchange Act of 1934, as amended, and thereupon
        one or more new Notes of authorized denominations and in the same aggregate
        principal amount will be issued to the designated transferee or transferees.
        No
        service charge will be charged for any registration of transfer or exchange
        of
        this Note, but the transferor may be required to pay a sum sufficient to
        cover
        any tax or other governmental charge that may be imposed in connection with
        any
        such registration of transfer or exchange. 

       

      The
        Notes
        will be issued in minimum denominations of $25,000 in original principal
        amount
        and integral multiples of $1 in excess thereof, provided, that the initial
        sale
        of any Notes shall be in increments of no less than $100,000.

       

      The
        Notes
        are subject to optional redemption in accordance with the Indenture and the
        Transfer and Servicing Agreement. 

       

      Each
        Noteholder and Note Owner, by acceptance of a Note or, in the case of a Note
        Owner, a beneficial interest in a Note, covenants and agrees that no recourse
        may be taken, directly or indirectly, with respect to the obligations of
        the
        Issuer, the Owner Trustee or the Indenture Trustee on the Notes or under
        the
        Indenture or any certificate or other writing delivered in connection therewith,
        against (i) the Indenture Trustee, or the Owner Trustee in their respective
        individual capacities, (ii) any owner of a beneficial interest in the Issuer
        or
        (iii) any partner, owner, beneficiary, agent, officer, director or employee
        of
        the Indenture Trustee or the Owner Trustee in its individual capacity, any
        holder of a beneficial interest in the Issuer, the Owner Trustee or the
        Indenture Trustee or of any successor or assign of the Indenture Trustee
        or the
        Owner Trustee in its individual capacity, except as any such Person may have
        expressly agreed and except that any such partner, owner or beneficiary shall
        be
        fully liable, to the extent provided by applicable law, for any unpaid
        consideration for stock, unpaid capital contribution or failure to pay any
        installment or call owing to such entity.

       

      Each
        Noteholder and Note Owner, by acceptance of a Note or, in the case of a Note
        Owner, a beneficial interest in a Note, covenants and agrees by accepting
        the
        benefits of the Indenture that such Noteholder or Note Owner will not at
        any
        time institute against the Depositor or the Issuer, or join in any institution
        against the Depositor or the Issuer of, any bankruptcy, reorganization,
        arrangement, insolvency or liquidation proceedings under any United States
        federal or state bankruptcy or similar law in connection with any obligations
        relating to the Notes, the Indenture or the other Operative Agreements.

       

      Each
        Noteholder and Note Owner, by acceptance of a Note or, in the case of a Note
        Owner, a beneficial interest in a Note, consents to and agrees to be bound
        by
        the terms and conditions of the Indenture.

       

      The
        Issuer has entered into the Indenture and this Note is issued with the intention
        that, for federal, state and local income, single business and franchise
        tax
        purposes, the Notes will qualify as indebtedness of the Issuer secured by
        the
        Collateral. Each Noteholder, by acceptance of a Note (and each Note Owner
        by
        acceptance of a beneficial interest in a Note), agrees to treat the Notes
        for
        all federal, state and local income tax purposes as indebtedness (except
        that
        any Note held by a person that, for federal income tax purposes, owns or
        is
        treated as owning a 100% Percentage Interest of the Ownership Certificate
        shall
        not be treated as outstanding indebtedness). 

       

      Prior
        to
        the due presentment for registration of transfer of this Note, the Issuer,
        the
        Indenture Trustee, the Trust Administrator, the Note Registrar, the Paying
        Agent
        and any agent of the Issuer, the Indenture Trustee, the Trust Administrator,
        the
        Note Registrar or the Paying Agent may treat the Person in whose name this
        Note
        (as of the day of determination or as of such other date as may be specified
        in
        the Indenture) is registered as the owner hereof for all purposes, whether
        or
        not this Note be overdue, and none of the Issuer, the Indenture Trustee,
        the
        Note Registrar, the Paying Agent or any such agent shall be affected by notice
        to the contrary. 

       

      The
        Indenture permits, with certain exceptions as therein provided, the amendment
        thereof by supplemental indenture and the modification of the rights and
        obligations of the Issuer and the rights of the Holders of the Notes under
        the
        Indenture at any time by the Depositor, the Issuer and the Indenture Trustee
        with the consent of the Holders of not less than 66-2/3% of the Outstanding
        Balance of the Notes for the purpose of adding any provisions to or changing
        in
        any manner or eliminating any of the provisions of the Indenture or of modifying
        in any manner the rights of the Noteholders. Any such consent or waiver by
        the
        Holder of this Note (or any one or more Predecessor Notes) shall be conclusive
        and binding upon such Holder and upon all future Holders of this Note and
        of any
        Note issued upon the registration of transfer hereof or in exchange hereof
        or in
        lieu hereof whether or not notation of such consent or waiver is made upon
        this
        Note. The Indenture also permits the amendment thereof, in certain limited
        circumstances, or the waiver of certain terms and conditions set forth in
        the
        Indenture, without the consent of Holders of the Notes issued thereunder.
        

       

      The
        term
“Issuer” as used in this Note includes any successor to the Issuer under the
        Indenture. 

       

      The
        Notes
        are issuable only in registered form in denominations as provided in the
        Indenture, subject to certain limitations therein set forth. 

       

      THIS
        NOTE
        AND THE INDENTURE SHALL BE GOVERNED BY AND CONSTRUED IN ACCORDANCE WITH THE
        LAWS
        OF THE STATE OF NEW YORK, WITHOUT REFERENCE TO ITS CONFLICT OF LAW PROVISIONS
        (OTHER THAN SECTION 5-1401 OF THE GENERAL OBLIGATIONS LAW), AND THE OBLIGATIONS,
        RIGHTS AND REMEDIES OF THE PARTIES HEREUNDER SHALL BE DETERMINED IN ACCORDANCE
        WITH SUCH LAWS. 

       

      No
        reference herein to the Indenture and no provision of this Note or of the
        Indenture shall alter or impair the obligation of the Issuer, which is absolute
        and unconditional, to pay the principal of and interest on this Note at the
        times, place and rate, and in the coin or currency herein prescribed.

       

      Anything
        herein to the contrary notwithstanding, except as expressly provided in the
        Operative Agreements, none of the Issuer in its individual capacity, the
        Owner
        Trustee in its individual capacity, the Indenture Trustee in its individual
        capacity, any owner of a beneficial interest in the Issuer, the Trust
        Administrator in its individual capacity, the Note Registrar, the Paying
        Agent
        or any of their respective partners, beneficiaries, agents, officers, directors,
        employees or successors or assigns shall be personally liable for, nor shall
        recourse be had to any of them for, the payment of principal of or interest
        on
        this Note or performance of, or omission to perform, any of the covenants,
        obligations or indemnifications contained in the Indenture. The Holder of
        this
        Note by its acceptance hereof agrees that, except as expressly provided in
        the
        Operative Agreements, in the case of an Event of Default under the Indenture,
        the Holder shall have no claim against any of the foregoing for any deficiency,
        loss or claim therefrom; provided,
        however,
        that
        nothing contained herein shall be taken to prevent recourse to, and enforcement
        against, the assets of the Issuer for any and all liabilities, obligations
        and
        undertakings contained in the Indenture or in this Note. 

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

      ASSIGNMENT

       

      Social
        Security or taxpayer I.D. or other identifying number of assignee:
        ________________________

       

      FOR
        VALUE
        RECEIVED, the undersigned hereby sells, assigns and transfers unto:

       

      
        	 	 	 

      

      (name
        and
        address of assignee)

       

      the
        within Note and all rights thereunder, and hereby irrevocably constitutes
        and
        appoints ________________________, attorney, to transfer said Note on the
        books
        kept for registration thereof, with full power of substitution in the premises.
        

       

      Dated:__________________________*/

       

      Signature
        Guaranteed: 

       

      ________________________________*/
        

       

      

       

      */
        NOTICE:
        The signature to this assignment must correspond with the name of the registered
        owner as it appears on the face of the within Note in every particular, without
        alteration, enlargement or any change whatever. Such signature must be
        guaranteed by an “eligible guarantor institution” meeting the requirements of
        the Note Registrar, which requirements include membership or participation
        in
        STAMP or such other “signature guarantee program” as may be determined by the
        Note Registrar in addition to, or in substitution for, STAMP, all in accordance
        with the Securities Exchange Act of 1934, as amended.

       

      

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

      UNLESS
        THIS NOTE IS PRESENTED BY AN AUTHORIZED REPRESENTATIVE OF THE DEPOSITORY
        TRUST
        COMPANY, A NEW YORK CORPORATION (“DTC”), TO THE ISSUER OR ITS AGENT FOR
        REGISTRATION OF TRANSFER, EXCHANGE OR PAYMENT, AND ANY NOTE ISSUED IS REGISTERED
        IN THE NAME OF CEDE & CO. OR IN SUCH OTHER NAME AS IS REQUESTED BY AN
        AUTHORIZED REPRESENTATIVE OF DTC (AND ANY PAYMENT IS MADE TO CEDE & CO. OR
        TO SUCH OTHER ENTITY AS IS REQUESTED BY AN AUTHORIZED REPRESENTATIVE OF DTC),
        ANY TRANSFER, PLEDGE OR OTHER USE HEREOF FOR VALUE OR OTHERWISE BY OR TO
        ANY
        PERSON IS WRONGFUL INASMUCH AS THE REGISTERED OWNER HEREOF, CEDE & CO., HAS
        AN INTEREST HEREIN.

       

      THIS
        NOTE
        DOES NOT EVIDENCE AN OBLIGATION OF OR AN INTEREST IN, AND IS NOT GUARANTEED
        BY,
        THE ISSUER, THE DEPOSITOR, THE MASTER SERVICER, THE SELLER, THE SERVICER,
        THE
        INDENTURE TRUSTEE, THE OWNER TRUSTEE, THE TRUST ADMINISTRATOR, OR ANY AFFILIATE
        OF ANY OF THEM AND IS NOT INSURED OR GUARANTEED BY ANY GOVERNMENTAL AGENCY
        OR
        PRIVATE INSURER.

       

      THE
        PRINCIPAL OF THIS NOTE IS PAYABLE IN INSTALLMENTS AS SET FORTH HEREIN.
        ACCORDINGLY, THE OUTSTANDING PRINCIPAL AMOUNT OF THIS NOTE AT ANY TIME MAY
        BE
        LESS THAN THE AMOUNT SHOWN ON THE FACE HEREOF.

       

      THIS
        NOTE
        IS SUBORDINATE IN RIGHT OF PAYMENT AS PROVIDED IN THE INDENTURE REFERRED
        TO
        HEREIN.

       

      EACH
        PURCHASER OF THIS NOTE WILL BE DEEMED TO HAVE MADE THE REPRESENTATIONS AND
        AGREEMENTS SET FORTH IN SECTION 2.03 OF THE INDENTURE. ANY TRANSFER IN VIOLATION
        OF THE FOREGOING WILL BE OF NO FORCE AND EFFECT, WILL BE VOID AB
        INITIO,
        AND
        WILL NOT OPERATE TO TRANSFER ANY RIGHTS TO THE TRANSFEREE, NOTWITHSTANDING
        ANY
        INSTRUCTIONS TO THE CONTRARY TO THE ISSUER, THE INDENTURE TRUSTEE OR ANY
        INTERMEDIARY.

       

      THIS
        NOTE
        MAY NOT BE ACQUIRED BY A TRANSFEREE FOR, OR ON BEHALF OF AN EMPLOYEE BENEFIT
        PLAN OR OTHER RETIREMENT ARRANGEMENT THAT IS SUBJECT TO THE EMPLOYEE RETIREMENT
        INCOME SECURITY ACT OF 1974, AS AMENDED (“ERISA”) OR SECTION 4975 OF THE
        INTERNAL REVENUE CODE OF 1986, AS AMENDED (THE “CODE”) OR TO ANY SUBSTANTIALLY
        SIMILAR LAW (“SIMILAR LAW”) OR ANY ENTITY DEEMED TO HOLD THE PLAN ASSETS OF THE
        FOREGOING (“BENEFIT PLAN”), UNLESS THE TRANSFEREE REPRESENTS AND WARRANTS THAT
        THE ACQUISITION AND HOLDING OF THIS NOTE: (X) WILL NOT RESULT IN A NON-EXEMPT
        PROHIBITED TRANSACTION UNDER SECTION 406 OF ERISA OR SECTION 4975 OF THE
        CODE
        WHICH IS NOT COVERED BY PROHIBITED TRANSACTION CLASS EXEMPTION (“PTCE”) 84-14,
        PTCE 90-1, PTCE 91-38, PTCE 95-60, PTCE 96-23 OR SOME OTHER APPLICABLE EXEMPTION
        AND (Y) WILL NOT RESULT IN A NON-EXEMPT VIOLATION OF ANY SUBSTANTIALLY SIMILAR
        APPLICABLE LAW. EACH INVESTOR IN THIS NOTE WILL BE DEEMED TO MAKE THE FOREGOING
        REPRESENTATIONS AND WILL FURTHER BE DEEMED TO REPRESENT, WARRANT AND COVENANT
        THAT IT WILL NOT SELL, PLEDGE OR OTHERWISE TRANSFER THIS NOTE IN VIOLATION
        OF
        THE FOREGOING.

       

      

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

      AAMES
        MORTGAGE INVESTMENT TRUST 2006-1

      

       

      CLASS
        M-1
        NOTES

       

      

       

      
        	
                Aggregate
                  Class Principal Amount of

              	
                Class
                  Principal Amount

              
	
                the
                  Class M-1 Notes: $44,948,000.00

              	
                of
                  this Note: $44,948,000.00

                 

              
	
                Interest
                  Rate: Adjustable

              	
                Cut-off
                  Date: April 1, 2006

                 

              
	
                Number:
                  1

              	
                CUSIP
                  No.: 00252G AE 9

              

      

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

      AAMES
        MORTGAGE INVESTMENT TRUST 2006-1, a statutory trust organized and existing
        under
        the laws of the State of Delaware (herein referred to as the “Issuer”), for
        value received, hereby promises to pay to CEDE & CO., or registered assigns,
        the principal sum of FORTY-FOUR MILLION NINE HUNDRED AND FORTY EIGHT
        THOUSAND DOLLARS
        AND NO/100 ($44,948,000.00)
        payable on each Payment Date in an amount equal to the result obtained by
        multiplying (A) the Percentage Interest evidenced by this Note (obtained
        by
        dividing the initial Class Principal Amount of this Note by the initial Class
        Principal Amount of all Class M-1 Notes, both as specified above) and (B)
        the
        amount payable on such Payment Date in respect of principal of the Class
        M-1
        Notes pursuant to the Indenture dated as of April 1, 2006 (as amended and
        supplemented from time to time, the “Indenture”), among the Issuer, Wells Fargo
        Bank, N.A., as Trust Administrator (the “Trust Administrator”) and Deutsche Bank
        National Trust Company, as Indenture Trustee (the “Indenture Trustee”);
provided,
        however,
        that
        the entire unpaid principal amount of this Note shall be due and payable
        on the
        Payment Date occurring in April 2036 (the “Maturity Date”) or as otherwise
        specified in the Indenture. Capitalized terms used but not defined herein
        have
        the meanings assigned to such terms in the Indenture or the Transfer and
        Servicing Agreement dated as of April 1, 2006 (as amended and supplemented
        from
        time to time, the “Transfer and Servicing Agreement”), by and among the Issuer,
        Financial Asset Securities Corp., as depositor (the “Depositor”), Wells Fargo
        Bank, N.A., as trust administrator (in such capacity, the “Trust Administrator”)
        and as master servicer (in such capacity, the “Master Servicer”), Aames Funding
        Corporation, as servicer, Aames Investment Corporation, as seller, and the
        Indenture Trustee, which agreements also contain rules as to construction
        that
        shall be applicable herein.

       

      The
        Issuer will pay interest on this Note at a per annum rate equal to the
        applicable Interest Rate, on the principal amount of this Note outstanding
        on
        the immediately preceding Payment Date (after giving effect to all payments
        of
        principal made on such preceding Payment Date) on each Payment Date until
        the
        principal of this Note is paid or made available for payment in
        full.

       

      Payments
        on this Note will be made on the 25th day of each month or, if such a day
        is not
        a Business Day, then on the next succeeding Business Day, commencing in May
        2006
        (each, a “Payment Date”), to the Person in whose name this Note is registered at
        the close of business on the Business Day immediately preceding such Payment
        Date (the “Record Date”), in an amount equal to the product of the Percentage
        Interest evidenced by this Note and the amount, if any, required to be
        distributed to all the Notes of the Class represented by this Note. All sums
        distributable on this Note are payable in 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. Such principal of and interest on this Note
        shall
        be paid in the manner specified on the reverse hereof.

       

      All
        payments made by the Issuer with respect to this Note shall be applied as
        provided in the Transfer and Servicing Agreement.

       

      Reference
        is made to the further provisions of this Note set forth on the reverse hereof,
        which shall have the same effect as though fully set forth on the face of
        this
        Note. 

       

      Unless
        the certificate of authentication hereon has been executed by the Trust
        Administrator whose name appears below by manual signature, this Note shall
        not
        be entitled to any benefit under the Indenture referred to on the reverse
        hereof, or be valid or obligatory for any purpose. 

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

      IN
        WITNESS WHEREOF, the Issuer has caused this instrument to be signed, manually
        or
        in facsimile, by its Authorized Officer, as of the date set forth below.
        

       

      AAMES
        MORTGAGE INVESTMENT TRUST 2006-1

       

      By: WILMINGTON
        TRUST COMPANY, 

      not
        in
        its individual capacity but solely as Owner Trustee 

      under
        the
        Trust Agreement

       

      By:
        ________________________________________

      Authorized
        Signatory 

       

      Dated:
        ____________________, 2006

       

      TRUST
        ADMINISTRATOR’S CERTIFICATE OF AUTHENTICATION

       

      This
        is
        one of the Notes designated above and referred to in the within-mentioned
        Indenture. 

       

      WELLS
        FARGO BANK, N.A.,

      not
        in
        its individual capacity but solely as Trust Administrator,

       

      By:
        ________________________________________

      Authorized
        Signatory 

       

      Dated:
        ___________________, 2006

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

      AAMES
        MORTGAGE INVESTMENT TRUST 2006-1

       

      This
        Note
        is one of a duly authorized issue of Notes of the Issuer, all issued under
        the
        Indenture, to which Indenture and all indentures supplemental thereto reference
        is hereby made for a statement of the respective rights and obligations
        thereunder of the Issuer, the Indenture Trustee and the Holders of the Notes.
        To
        the extent that any provision of this Note contradicts or is inconsistent
        with
        the provisions of the Indenture, the provisions of the Indenture shall control
        and supersede such contradictory or inconsistent provision herein. This Note
        is
        subject to all terms of the Indenture. 

       

      The
        Class
        A-1, Class A-2, Class A-3 and Class A-4 Notes (the “Senior Notes”) are, and will
        be, equally and ratably secured by the collateral pledged as security therefor
        as provided in the Indenture. The rights of the Holders of the Class M-1,
        Class
        M-2, Class M-3, Class M-4, Class M-5, Class M-6, Class M-7, Class M-8, Class
        M-9, Class M-10 and Class M-11 Notes (the “Subordinate Notes”) to receive
        payments or distribution of interest and principal are, and will be, subordinate
        to the rights of the Holders of the Senior Notes to receive payments of interest
        and principal, respectively, as provided in the Indenture.

       

      Payments
        to each Noteholder shall be made upon written request made to the Note Registrar
        and Paying Agent at least five Business Days prior to the related Record
        Date by
        the Holder of a Note having an initial Note Principal Amount of not less
        than
        $2,500,000, by wire transfer in immediately available funds to an account
        specified in writing by such Noteholder. The final payment in retirement
        of this
        Note shall be made only upon surrender of this Note to the Note Registrar
        and
        Paying Agent at the office thereof specified in the notice to Noteholders
        of
        such final payment mailed prior to the Payment Date on which the final payment
        is expected to be made to the Holder thereof.

       

      As
        provided in the Indenture and subject to certain limitations set forth therein,
        the transfer of this Note may be registered by the Note Registrar upon surrender
        of this Note for registration of transfer at the office or agency designated
        by
        the Issuer pursuant to the Indenture, duly endorsed by, or accompanied by
        a
        written instrument of transfer in form satisfactory to the Note Registrar
        duly
        executed by, the Holder hereof or such Holder’s attorney duly authorized in
        writing, with such signature guaranteed by an “eligible guarantor institution”
meeting the requirements of the Note Registrar, which requirements include
        membership or participation in the Securities Transfer Agent’s Medallion Program
        (“STAMP”) or such other “signature guarantee program” as may be determined by
        the Note Registrar in addition to, or in substitution for, STAMP, all in
        accordance with the Securities Exchange Act of 1934, as amended, and thereupon
        one or more new Notes of authorized denominations and in the same aggregate
        principal amount will be issued to the designated transferee or transferees.
        No
        service charge will be charged for any registration of transfer or exchange
        of
        this Note, but the transferor may be required to pay a sum sufficient to
        cover
        any tax or other governmental charge that may be imposed in connection with
        any
        such registration of transfer or exchange. 

       

      The
        Notes
        will be issued in minimum denominations of $25,000 in original principal
        amount
        and integral multiples of $1 in excess thereof, provided, that the initial
        sale
        of any Notes shall be in increments of no less than $100,000.

       

      The
        Notes
        are subject to optional redemption in accordance with the Indenture and the
        Transfer and Servicing Agreement. 

       

      Each
        Noteholder and Note Owner, by acceptance of a Note or, in the case of a Note
        Owner, a beneficial interest in a Note, covenants and agrees that no recourse
        may be taken, directly or indirectly, with respect to the obligations of
        the
        Issuer, the Owner Trustee or the Indenture Trustee on the Notes or under
        the
        Indenture or any certificate or other writing delivered in connection therewith,
        against (i) the Indenture Trustee, or the Owner Trustee in their respective
        individual capacities, (ii) any owner of a beneficial interest in the Issuer
        or
        (iii) any partner, owner, beneficiary, agent, officer, director or employee
        of
        the Indenture Trustee or the Owner Trustee in its individual capacity, any
        holder of a beneficial interest in the Issuer, the Owner Trustee or the
        Indenture Trustee or of any successor or assign of the Indenture Trustee
        or the
        Owner Trustee in its individual capacity, except as any such Person may have
        expressly agreed and except that any such partner, owner or beneficiary shall
        be
        fully liable, to the extent provided by applicable law, for any unpaid
        consideration for stock, unpaid capital contribution or failure to pay any
        installment or call owing to such entity.

       

      Each
        Noteholder and Note Owner, by acceptance of a Note or, in the case of a Note
        Owner, a beneficial interest in a Note, covenants and agrees by accepting
        the
        benefits of the Indenture that such Noteholder or Note Owner will not at
        any
        time institute against the Depositor or the Issuer, or join in any institution
        against the Depositor or the Issuer of, any bankruptcy, reorganization,
        arrangement, insolvency or liquidation proceedings under any United States
        federal or state bankruptcy or similar law in connection with any obligations
        relating to the Notes, the Indenture or the other Operative Agreements.

       

      Each
        Noteholder and Note Owner, by acceptance of a Note or, in the case of a Note
        Owner, a beneficial interest in a Note, consents to and agrees to be bound
        by
        the terms and conditions of the Indenture.

       

      The
        Issuer has entered into the Indenture and this Note is issued with the intention
        that, for federal, state and local income, single business and franchise
        tax
        purposes, the Notes will qualify as indebtedness of the Issuer secured by
        the
        Collateral. Each Noteholder, by acceptance of a Note (and each Note Owner
        by
        acceptance of a beneficial interest in a Note), agrees to treat the Notes
        for
        all federal, state and local income tax purposes as indebtedness (except
        that
        any Note held by a person that, for federal income tax purposes, owns or
        is
        treated as owning a 100% Percentage Interest of the Ownership Certificate
        shall
        not be treated as outstanding indebtedness). 

       

      Prior
        to
        the due presentment for registration of transfer of this Note, the Issuer,
        the
        Indenture Trustee, the Trust Administrator, the Note Registrar, the Paying
        Agent
        and any agent of the Issuer, the Indenture Trustee, the Trust Administrator,
        the
        Note Registrar or the Paying Agent may treat the Person in whose name this
        Note
        (as of the day of determination or as of such other date as may be specified
        in
        the Indenture) is registered as the owner hereof for all purposes, whether
        or
        not this Note be overdue, and none of the Issuer, the Indenture Trustee,
        the
        Note Registrar, the Paying Agent or any such agent shall be affected by notice
        to the contrary. 

       

      The
        Indenture permits, with certain exceptions as therein provided, the amendment
        thereof by supplemental indenture and the modification of the rights and
        obligations of the Issuer and the rights of the Holders of the Notes under
        the
        Indenture at any time by the Depositor, the Issuer and the Indenture Trustee
        with the consent of the Holders of not less than 66-2/3% of the Outstanding
        Balance of the Notes for the purpose of adding any provisions to or changing
        in
        any manner or eliminating any of the provisions of the Indenture or of modifying
        in any manner the rights of the Noteholders. Any such consent or waiver by
        the
        Holder of this Note (or any one or more Predecessor Notes) shall be conclusive
        and binding upon such Holder and upon all future Holders of this Note and
        of any
        Note issued upon the registration of transfer hereof or in exchange hereof
        or in
        lieu hereof whether or not notation of such consent or waiver is made upon
        this
        Note. The Indenture also permits the amendment thereof, in certain limited
        circumstances, or the waiver of certain terms and conditions set forth in
        the
        Indenture, without the consent of Holders of the Notes issued thereunder.
        

       

      The
        term
“Issuer” as used in this Note includes any successor to the Issuer under the
        Indenture. 

       

      The
        Notes
        are issuable only in registered form in denominations as provided in the
        Indenture, subject to certain limitations therein set forth. 

       

      THIS
        NOTE
        AND THE INDENTURE SHALL BE GOVERNED BY AND CONSTRUED IN ACCORDANCE WITH THE
        LAWS
        OF THE STATE OF NEW YORK, WITHOUT REFERENCE TO ITS CONFLICT OF LAW PROVISIONS
        (OTHER THAN SECTION 5-1401 OF THE GENERAL OBLIGATIONS LAW), AND THE OBLIGATIONS,
        RIGHTS AND REMEDIES OF THE PARTIES HEREUNDER SHALL BE DETERMINED IN ACCORDANCE
        WITH SUCH LAWS. 

       

      No
        reference herein to the Indenture and no provision of this Note or of the
        Indenture shall alter or impair the obligation of the Issuer, which is absolute
        and unconditional, to pay the principal of and interest on this Note at the
        times, place and rate, and in the coin or currency herein prescribed.

       

      Anything
        herein to the contrary notwithstanding, except as expressly provided in the
        Operative Agreements, none of the Issuer in its individual capacity, the
        Owner
        Trustee in its individual capacity, the Indenture Trustee in its individual
        capacity, any owner of a beneficial interest in the Issuer, the Trust
        Administrator in its individual capacity, the Note Registrar, the Paying
        Agent
        or any of their respective partners, beneficiaries, agents, officers, directors,
        employees or successors or assigns shall be personally liable for, nor shall
        recourse be had to any of them for, the payment of principal of or interest
        on
        this Note or performance of, or omission to perform, any of the covenants,
        obligations or indemnifications contained in the Indenture. The Holder of
        this
        Note by its acceptance hereof agrees that, except as expressly provided in
        the
        Operative Agreements, in the case of an Event of Default under the Indenture,
        the Holder shall have no claim against any of the foregoing for any deficiency,
        loss or claim therefrom; provided,
        however,
        that
        nothing contained herein shall be taken to prevent recourse to, and enforcement
        against, the assets of the Issuer for any and all liabilities, obligations
        and
        undertakings contained in the Indenture or in this Note. 

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

      ASSIGNMENT

       

      Social
        Security or taxpayer I.D. or other identifying number of assignee:
        ________________________

       

      FOR
        VALUE
        RECEIVED, the undersigned hereby sells, assigns and transfers unto:

       

      
        	 	 	 

      

      (name
        and
        address of assignee)

       

      the
        within Note and all rights thereunder, and hereby irrevocably constitutes
        and
        appoints ________________________, attorney, to transfer said Note on the
        books
        kept for registration thereof, with full power of substitution in the premises.
        

       

      Dated:__________________________*/

       

      Signature
        Guaranteed: 

       

      ________________________________*/
        

       

      

       

      */
        NOTICE:
        The signature to this assignment must correspond with the name of the registered
        owner as it appears on the face of the within Note in every particular, without
        alteration, enlargement or any change whatever. Such signature must be
        guaranteed by an “eligible guarantor institution” meeting the requirements of
        the Note Registrar, which requirements include membership or participation
        in
        STAMP or such other “signature guarantee program” as may be determined by the
        Note Registrar in addition to, or in substitution for, STAMP, all in accordance
        with the Securities Exchange Act of 1934, as amended.

       

      

       

      

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

      UNLESS
        THIS NOTE IS PRESENTED BY AN AUTHORIZED REPRESENTATIVE OF THE DEPOSITORY
        TRUST
        COMPANY, A NEW YORK CORPORATION (“DTC”), TO THE ISSUER OR ITS AGENT FOR
        REGISTRATION OF TRANSFER, EXCHANGE OR PAYMENT, AND ANY NOTE ISSUED IS REGISTERED
        IN THE NAME OF CEDE & CO. OR IN SUCH OTHER NAME AS IS REQUESTED BY AN
        AUTHORIZED REPRESENTATIVE OF DTC (AND ANY PAYMENT IS MADE TO CEDE & CO. OR
        TO SUCH OTHER ENTITY AS IS REQUESTED BY AN AUTHORIZED REPRESENTATIVE OF DTC),
        ANY TRANSFER, PLEDGE OR OTHER USE HEREOF FOR VALUE OR OTHERWISE BY OR TO
        ANY
        PERSON IS WRONGFUL INASMUCH AS THE REGISTERED OWNER HEREOF, CEDE & CO., HAS
        AN INTEREST HEREIN.

       

      THIS
        NOTE
        DOES NOT EVIDENCE AN OBLIGATION OF OR AN INTEREST IN, AND IS NOT GUARANTEED
        BY,
        THE ISSUER, THE DEPOSITOR, THE MASTER SERVICER, THE SELLER, THE SERVICER,
        THE
        INDENTURE TRUSTEE, THE OWNER TRUSTEE, THE TRUST ADMINISTRATOR, OR ANY AFFILIATE
        OF ANY OF THEM AND IS NOT INSURED OR GUARANTEED BY ANY GOVERNMENTAL AGENCY
        OR
        PRIVATE INSURER.

       

      THE
        PRINCIPAL OF THIS NOTE IS PAYABLE IN INSTALLMENTS AS SET FORTH HEREIN.
        ACCORDINGLY, THE OUTSTANDING PRINCIPAL AMOUNT OF THIS NOTE AT ANY TIME MAY
        BE
        LESS THAN THE AMOUNT SHOWN ON THE FACE HEREOF.

       

      THIS
        NOTE
        IS SUBORDINATE IN RIGHT OF PAYMENT AS PROVIDED IN THE INDENTURE REFERRED
        TO
        HEREIN.

       

      EACH
        PURCHASER OF THIS NOTE WILL BE DEEMED TO HAVE MADE THE REPRESENTATIONS AND
        AGREEMENTS SET FORTH IN SECTION 2.03 OF THE INDENTURE. ANY TRANSFER IN VIOLATION
        OF THE FOREGOING WILL BE OF NO FORCE AND EFFECT, WILL BE VOID AB
        INITIO,
        AND
        WILL NOT OPERATE TO TRANSFER ANY RIGHTS TO THE TRANSFEREE, NOTWITHSTANDING
        ANY
        INSTRUCTIONS TO THE CONTRARY TO THE ISSUER, THE INDENTURE TRUSTEE OR ANY
        INTERMEDIARY.

       

      THIS
        NOTE
        MAY NOT BE ACQUIRED BY A TRANSFEREE FOR, OR ON BEHALF OF AN EMPLOYEE BENEFIT
        PLAN OR OTHER RETIREMENT ARRANGEMENT THAT IS SUBJECT TO THE EMPLOYEE RETIREMENT
        INCOME SECURITY ACT OF 1974, AS AMENDED (“ERISA”) OR SECTION 4975 OF THE
        INTERNAL REVENUE CODE OF 1986, AS AMENDED (THE “CODE”) OR TO ANY SUBSTANTIALLY
        SIMILAR LAW (“SIMILAR LAW”) OR ANY ENTITY DEEMED TO HOLD THE PLAN ASSETS OF THE
        FOREGOING (“BENEFIT PLAN”), UNLESS THE TRANSFEREE REPRESENTS AND WARRANTS THAT
        THE ACQUISITION AND HOLDING OF THIS NOTE: (X) WILL NOT RESULT IN A NON-EXEMPT
        PROHIBITED TRANSACTION UNDER SECTION 406 OF ERISA OR SECTION 4975 OF THE
        CODE
        WHICH IS NOT COVERED BY PROHIBITED TRANSACTION CLASS EXEMPTION (“PTCE”) 84-14,
        PTCE 90-1, PTCE 91-38, PTCE 95-60, PTCE 96-23 OR SOME OTHER APPLICABLE EXEMPTION
        AND (Y) WILL NOT RESULT IN A NON-EXEMPT VIOLATION OF ANY SUBSTANTIALLY SIMILAR
        APPLICABLE LAW. EACH INVESTOR IN THIS NOTE WILL BE DEEMED TO MAKE THE FOREGOING
        REPRESENTATIONS AND WILL FURTHER BE DEEMED TO REPRESENT, WARRANT AND COVENANT
        THAT IT WILL NOT SELL, PLEDGE OR OTHERWISE TRANSFER THIS NOTE IN VIOLATION
        OF
        THE FOREGOING.

       

      

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

      AAMES
        MORTGAGE INVESTMENT TRUST 2006-1

      

       

      CLASS
        M-2
        NOTES

       

      

       

      
        	
                Aggregate
                  Class Principal Amount of

              	
                Class
                  Principal Amount

              
	
                the
                  Class M-2 Notes: $13,148,000.00

              	
                of
                  this Note: $13,148,000.00

                 

              
	
                Interest
                  Rate: Adjustable

              	
                Cut-off
                  Date: April 1, 2006

                 

              
	
                Number:
                  1

              	
                CUSIP
                  No.: 00252G AF 6

              

      

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

      AAMES
        MORTGAGE INVESTMENT TRUST 2006-1, a statutory trust organized and existing
        under
        the laws of the State of Delaware (herein referred to as the “Issuer”), for
        value received, hereby promises to pay to CEDE & CO., or registered assigns,
        the principal sum of THIRTEEN MILLION ONE HUNDRED AND FORTY-EIGHT THOUSAND
        DOLLARS AND NO/100 ($13,148,000.00)
        payable on each Payment Date in an amount equal to the result obtained by
        multiplying (A) the Percentage Interest evidenced by this Note (obtained
        by
        dividing the initial Class Principal Amount of this Note by the initial Class
        Principal Amount of all Class M-2 Notes, both as specified above) and (B)
        the
        amount payable on such Payment Date in respect of principal of the Class
        M-2
        Notes pursuant to the Indenture dated as of April 1, 2006 (as amended and
        supplemented from time to time, the “Indenture”), among the Issuer, Wells Fargo
        Bank, N.A., as Trust Administrator (the “Trust Administrator”) and Deutsche Bank
        National Trust Company, as Indenture Trustee (the “Indenture Trustee”);
provided,
        however,
        that
        the entire unpaid principal amount of this Note shall be due and payable
        on the
        Payment Date occurring in April 2036 (the “Maturity Date”) or as otherwise
        specified in the Indenture. Capitalized terms used but not defined herein
        have
        the meanings assigned to such terms in the Indenture or the Transfer and
        Servicing Agreement dated as of April 1, 2006 (as amended and supplemented
        from
        time to time, the “Transfer and Servicing Agreement”), by and among the Issuer,
        Financial Asset Securities Corp., as depositor (the “Depositor”), Wells Fargo
        Bank, N.A., as trust administrator (in such capacity, the “Trust Administrator”)
        and as master servicer (in such capacity, the “Master Servicer”), Aames Funding
        Corporation, as servicer, Aames Investment Corporation, as seller, and the
        Indenture Trustee, which agreements also contain rules as to construction
        that
        shall be applicable herein.

       

      The
        Issuer will pay interest on this Note at a per annum rate equal to the
        applicable Interest Rate, on the principal amount of this Note outstanding
        on
        the immediately preceding Payment Date (after giving effect to all payments
        of
        principal made on such preceding Payment Date) on each Payment Date until
        the
        principal of this Note is paid or made available for payment in
        full.

       

      Payments
        on this Note will be made on the 25th day of each month or, if such a day
        is not
        a Business Day, then on the next succeeding Business Day, commencing in May
        2006
        (each, a “Payment Date”), to the Person in whose name this Note is registered at
        the close of business on the Business Day immediately preceding such Payment
        Date (the “Record Date”), in an amount equal to the product of the Percentage
        Interest evidenced by this Note and the amount, if any, required to be
        distributed to all the Notes of the Class represented by this Note. All sums
        distributable on this Note are payable in 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. Such principal of and interest on this Note
        shall
        be paid in the manner specified on the reverse hereof.

       

      All
        payments made by the Issuer with respect to this Note shall be applied as
        provided in the Transfer and Servicing Agreement.

       

      Reference
        is made to the further provisions of this Note set forth on the reverse hereof,
        which shall have the same effect as though fully set forth on the face of
        this
        Note. 

       

      Unless
        the certificate of authentication hereon has been executed by the Trust
        Administrator whose name appears below by manual signature, this Note shall
        not
        be entitled to any benefit under the Indenture referred to on the reverse
        hereof, or be valid or obligatory for any purpose. 

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

      IN
        WITNESS WHEREOF, the Issuer has caused this instrument to be signed, manually
        or
        in facsimile, by its Authorized Officer, as of the date set forth below.
        

       

      AAMES
        MORTGAGE INVESTMENT TRUST 2006-1

       

      By: WILMINGTON
        TRUST COMPANY, 

      not
        in
        its individual capacity but solely as Owner Trustee 

      under
        the
        Trust Agreement

       

      By:
        ________________________________________

      Authorized
        Signatory 

       

      Dated:
        ____________________, 2006

       

      TRUST
        ADMINISTRATOR’S CERTIFICATE OF AUTHENTICATION

       

      This
        is
        one of the Notes designated above and referred to in the within-mentioned
        Indenture. 

       

      WELLS
        FARGO BANK, N.A.,

      not
        in
        its individual capacity but solely as Trust Administrator,

       

      By:
        ________________________________________

      Authorized
        Signatory 

       

      Dated:
        ___________________, 2006

       

      

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

      AAMES
        MORTGAGE INVESTMENT TRUST 2006-1

       

      This
        Note
        is one of a duly authorized issue of Notes of the Issuer, all issued under
        the
        Indenture, to which Indenture and all indentures supplemental thereto reference
        is hereby made for a statement of the respective rights and obligations
        thereunder of the Issuer, the Indenture Trustee and the Holders of the Notes.
        To
        the extent that any provision of this Note contradicts or is inconsistent
        with
        the provisions of the Indenture, the provisions of the Indenture shall control
        and supersede such contradictory or inconsistent provision herein. This Note
        is
        subject to all terms of the Indenture. 

       

      The
        Class
        A-1, Class A-2, Class A-3 and Class A-4 Notes (the “Senior Notes”) are, and will
        be, equally and ratably secured by the collateral pledged as security therefor
        as provided in the Indenture. The rights of the Holders of the Class M-1,
        Class
        M-2, Class M-3, Class M-4, Class M-5, Class M-6, Class M-7, Class M-8, Class
        M-9, Class M-10 and Class M-11 Notes (the “Subordinate Notes”) to receive
        payments or distribution of interest and principal are, and will be, subordinate
        to the rights of the Holders of the Senior Notes to receive payments of interest
        and principal, respectively, as provided in the Indenture.

       

      Payments
        to each Noteholder shall be made upon written request made to the Note Registrar
        and Paying Agent at least five Business Days prior to the related Record
        Date by
        the Holder of a Note having an initial Note Principal Amount of not less
        than
        $2,500,000, by wire transfer in immediately available funds to an account
        specified in writing by such Noteholder. The final payment in retirement
        of this
        Note shall be made only upon surrender of this Note to the Note Registrar
        and
        Paying Agent at the office thereof specified in the notice to Noteholders
        of
        such final payment mailed prior to the Payment Date on which the final payment
        is expected to be made to the Holder thereof.

       

      As
        provided in the Indenture and subject to certain limitations set forth therein,
        the transfer of this Note may be registered by the Note Registrar upon surrender
        of this Note for registration of transfer at the office or agency designated
        by
        the Issuer pursuant to the Indenture, duly endorsed by, or accompanied by
        a
        written instrument of transfer in form satisfactory to the Note Registrar
        duly
        executed by, the Holder hereof or such Holder’s attorney duly authorized in
        writing, with such signature guaranteed by an “eligible guarantor institution”
meeting the requirements of the Note Registrar, which requirements include
        membership or participation in the Securities Transfer Agent’s Medallion Program
        (“STAMP”) or such other “signature guarantee program” as may be determined by
        the Note Registrar in addition to, or in substitution for, STAMP, all in
        accordance with the Securities Exchange Act of 1934, as amended, and thereupon
        one or more new Notes of authorized denominations and in the same aggregate
        principal amount will be issued to the designated transferee or transferees.
        No
        service charge will be charged for any registration of transfer or exchange
        of
        this Note, but the transferor may be required to pay a sum sufficient to
        cover
        any tax or other governmental charge that may be imposed in connection with
        any
        such registration of transfer or exchange. 

       

      The
        Notes
        will be issued in minimum denominations of $25,000 in original principal
        amount
        and integral multiples of $1 in excess thereof, provided, that the initial
        sale
        of any Notes shall be in increments of no less than $100,000.

       

      The
        Notes
        are subject to optional redemption in accordance with the Indenture and the
        Transfer and Servicing Agreement. 

       

      Each
        Noteholder and Note Owner, by acceptance of a Note or, in the case of a Note
        Owner, a beneficial interest in a Note, covenants and agrees that no recourse
        may be taken, directly or indirectly, with respect to the obligations of
        the
        Issuer, the Owner Trustee or the Indenture Trustee on the Notes or under
        the
        Indenture or any certificate or other writing delivered in connection therewith,
        against (i) the Indenture Trustee, or the Owner Trustee in their respective
        individual capacities, (ii) any owner of a beneficial interest in the Issuer
        or
        (iii) any partner, owner, beneficiary, agent, officer, director or employee
        of
        the Indenture Trustee or the Owner Trustee in its individual capacity, any
        holder of a beneficial interest in the Issuer, the Owner Trustee or the
        Indenture Trustee or of any successor or assign of the Indenture Trustee
        or the
        Owner Trustee in its individual capacity, except as any such Person may have
        expressly agreed and except that any such partner, owner or beneficiary shall
        be
        fully liable, to the extent provided by applicable law, for any unpaid
        consideration for stock, unpaid capital contribution or failure to pay any
        installment or call owing to such entity.

       

      Each
        Noteholder and Note Owner, by acceptance of a Note or, in the case of a Note
        Owner, a beneficial interest in a Note, covenants and agrees by accepting
        the
        benefits of the Indenture that such Noteholder or Note Owner will not at
        any
        time institute against the Depositor or the Issuer, or join in any institution
        against the Depositor or the Issuer of, any bankruptcy, reorganization,
        arrangement, insolvency or liquidation proceedings under any United States
        federal or state bankruptcy or similar law in connection with any obligations
        relating to the Notes, the Indenture or the other Operative Agreements.

       

      Each
        Noteholder and Note Owner, by acceptance of a Note or, in the case of a Note
        Owner, a beneficial interest in a Note, consents to and agrees to be bound
        by
        the terms and conditions of the Indenture.

       

      The
        Issuer has entered into the Indenture and this Note is issued with the intention
        that, for federal, state and local income, single business and franchise
        tax
        purposes, the Notes will qualify as indebtedness of the Issuer secured by
        the
        Collateral. Each Noteholder, by acceptance of a Note (and each Note Owner
        by
        acceptance of a beneficial interest in a Note), agrees to treat the Notes
        for
        all federal, state and local income tax purposes as indebtedness (except
        that
        any Note held by a person that, for federal income tax purposes, owns or
        is
        treated as owning a 100% Percentage Interest of the Ownership Certificate
        shall
        not be treated as outstanding indebtedness). 

       

      Prior
        to
        the due presentment for registration of transfer of this Note, the Issuer,
        the
        Indenture Trustee, the Trust Administrator, the Note Registrar, the Paying
        Agent
        and any agent of the Issuer, the Indenture Trustee, the Trust Administrator,
        the
        Note Registrar or the Paying Agent may treat the Person in whose name this
        Note
        (as of the day of determination or as of such other date as may be specified
        in
        the Indenture) is registered as the owner hereof for all purposes, whether
        or
        not this Note be overdue, and none of the Issuer, the Indenture Trustee,
        the
        Note Registrar, the Paying Agent or any such agent shall be affected by notice
        to the contrary. 

       

      The
        Indenture permits, with certain exceptions as therein provided, the amendment
        thereof by supplemental indenture and the modification of the rights and
        obligations of the Issuer and the rights of the Holders of the Notes under
        the
        Indenture at any time by the Depositor, the Issuer and the Indenture Trustee
        with the consent of the Holders of not less than 66-2/3% of the Outstanding
        Balance of the Notes for the purpose of adding any provisions to or changing
        in
        any manner or eliminating any of the provisions of the Indenture or of modifying
        in any manner the rights of the Noteholders. Any such consent or waiver by
        the
        Holder of this Note (or any one or more Predecessor Notes) shall be conclusive
        and binding upon such Holder and upon all future Holders of this Note and
        of any
        Note issued upon the registration of transfer hereof or in exchange hereof
        or in
        lieu hereof whether or not notation of such consent or waiver is made upon
        this
        Note. The Indenture also permits the amendment thereof, in certain limited
        circumstances, or the waiver of certain terms and conditions set forth in
        the
        Indenture, without the consent of Holders of the Notes issued thereunder.
        

       

      The
        term
“Issuer” as used in this Note includes any successor to the Issuer under the
        Indenture. 

       

      The
        Notes
        are issuable only in registered form in denominations as provided in the
        Indenture, subject to certain limitations therein set forth. 

       

      THIS
        NOTE
        AND THE INDENTURE SHALL BE GOVERNED BY AND CONSTRUED IN ACCORDANCE WITH THE
        LAWS
        OF THE STATE OF NEW YORK, WITHOUT REFERENCE TO ITS CONFLICT OF LAW PROVISIONS
        (OTHER THAN SECTION 5-1401 OF THE GENERAL OBLIGATIONS LAW), AND THE OBLIGATIONS,
        RIGHTS AND REMEDIES OF THE PARTIES HEREUNDER SHALL BE DETERMINED IN ACCORDANCE
        WITH SUCH LAWS. 

       

      No
        reference herein to the Indenture and no provision of this Note or of the
        Indenture shall alter or impair the obligation of the Issuer, which is absolute
        and unconditional, to pay the principal of and interest on this Note at the
        times, place and rate, and in the coin or currency herein prescribed.

       

      Anything
        herein to the contrary notwithstanding, except as expressly provided in the
        Operative Agreements, none of the Issuer in its individual capacity, the
        Owner
        Trustee in its individual capacity, the Indenture Trustee in its individual
        capacity, any owner of a beneficial interest in the Issuer, the Trust
        Administrator in its individual capacity, the Note Registrar, the Paying
        Agent
        or any of their respective partners, beneficiaries, agents, officers, directors,
        employees or successors or assigns shall be personally liable for, nor shall
        recourse be had to any of them for, the payment of principal of or interest
        on
        this Note or performance of, or omission to perform, any of the covenants,
        obligations or indemnifications contained in the Indenture. The Holder of
        this
        Note by its acceptance hereof agrees that, except as expressly provided in
        the
        Operative Agreements, in the case of an Event of Default under the Indenture,
        the Holder shall have no claim against any of the foregoing for any deficiency,
        loss or claim therefrom; provided,
        however,
        that
        nothing contained herein shall be taken to prevent recourse to, and enforcement
        against, the assets of the Issuer for any and all liabilities, obligations
        and
        undertakings contained in the Indenture or in this Note. 

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

      ASSIGNMENT

       

      Social
        Security or taxpayer I.D. or other identifying number of assignee:
        ________________________

       

      FOR
        VALUE
        RECEIVED, the undersigned hereby sells, assigns and transfers unto:

       

      
        	 	 	 

      

      (name
        and
        address of assignee)

       

      the
        within Note and all rights thereunder, and hereby irrevocably constitutes
        and
        appoints ________________________, attorney, to transfer said Note on the
        books
        kept for registration thereof, with full power of substitution in the premises.
        

       

      Dated:__________________________*/

       

      Signature
        Guaranteed: 

       

      ________________________________*/
        

       

      

       

      */
        NOTICE:
        The signature to this assignment must correspond with the name of the registered
        owner as it appears on the face of the within Note in every particular, without
        alteration, enlargement or any change whatever. Such signature must be
        guaranteed by an “eligible guarantor institution” meeting the requirements of
        the Note Registrar, which requirements include membership or participation
        in
        STAMP or such other “signature guarantee program” as may be determined by the
        Note Registrar in addition to, or in substitution for, STAMP, all in accordance
        with the Securities Exchange Act of 1934, as amended.

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

      UNLESS
        THIS NOTE IS PRESENTED BY AN AUTHORIZED REPRESENTATIVE OF THE DEPOSITORY
        TRUST
        COMPANY, A NEW YORK CORPORATION (“DTC”), TO THE ISSUER OR ITS AGENT FOR
        REGISTRATION OF TRANSFER, EXCHANGE OR PAYMENT, AND ANY NOTE ISSUED IS REGISTERED
        IN THE NAME OF CEDE & CO. OR IN SUCH OTHER NAME AS IS REQUESTED BY AN
        AUTHORIZED REPRESENTATIVE OF DTC (AND ANY PAYMENT IS MADE TO CEDE & CO. OR
        TO SUCH OTHER ENTITY AS IS REQUESTED BY AN AUTHORIZED REPRESENTATIVE OF DTC),
        ANY TRANSFER, PLEDGE OR OTHER USE HEREOF FOR VALUE OR OTHERWISE BY OR TO
        ANY
        PERSON IS WRONGFUL INASMUCH AS THE REGISTERED OWNER HEREOF, CEDE & CO., HAS
        AN INTEREST HEREIN.

       

      THIS
        NOTE
        DOES NOT EVIDENCE AN OBLIGATION OF OR AN INTEREST IN, AND IS NOT GUARANTEED
        BY,
        THE ISSUER, THE DEPOSITOR, THE MASTER SERVICER, THE SELLER, THE SERVICER,
        THE
        INDENTURE TRUSTEE, THE OWNER TRUSTEE, THE TRUST ADMINISTRATOR, OR ANY AFFILIATE
        OF ANY OF THEM AND IS NOT INSURED OR GUARANTEED BY ANY GOVERNMENTAL AGENCY
        OR
        PRIVATE INSURER.

       

      THE
        PRINCIPAL OF THIS NOTE IS PAYABLE IN INSTALLMENTS AS SET FORTH HEREIN.
        ACCORDINGLY, THE OUTSTANDING PRINCIPAL AMOUNT OF THIS NOTE AT ANY TIME MAY
        BE
        LESS THAN THE AMOUNT SHOWN ON THE FACE HEREOF.

       

      THIS
        NOTE
        IS SUBORDINATE IN RIGHT OF PAYMENT AS PROVIDED IN THE INDENTURE REFERRED
        TO
        HEREIN.

       

      EACH
        PURCHASER OF THIS NOTE WILL BE DEEMED TO HAVE MADE THE REPRESENTATIONS AND
        AGREEMENTS SET FORTH IN SECTION 2.03 OF THE INDENTURE. ANY TRANSFER IN VIOLATION
        OF THE FOREGOING WILL BE OF NO FORCE AND EFFECT, WILL BE VOID AB
        INITIO,
        AND
        WILL NOT OPERATE TO TRANSFER ANY RIGHTS TO THE TRANSFEREE, NOTWITHSTANDING
        ANY
        INSTRUCTIONS TO THE CONTRARY TO THE ISSUER, THE INDENTURE TRUSTEE OR ANY
        INTERMEDIARY.

       

      THIS
        NOTE
        MAY NOT BE ACQUIRED BY A TRANSFEREE FOR, OR ON BEHALF OF AN EMPLOYEE BENEFIT
        PLAN OR OTHER RETIREMENT ARRANGEMENT THAT IS SUBJECT TO THE EMPLOYEE RETIREMENT
        INCOME SECURITY ACT OF 1974, AS AMENDED (“ERISA”) OR SECTION 4975 OF THE
        INTERNAL REVENUE CODE OF 1986, AS AMENDED (THE “CODE”) OR TO ANY SUBSTANTIALLY
        SIMILAR LAW (“SIMILAR LAW”) OR ANY ENTITY DEEMED TO HOLD THE PLAN ASSETS OF THE
        FOREGOING (“BENEFIT PLAN”), UNLESS THE TRANSFEREE REPRESENTS AND WARRANTS THAT
        THE ACQUISITION AND HOLDING OF THIS NOTE: (X) WILL NOT RESULT IN A NON-EXEMPT
        PROHIBITED TRANSACTION UNDER SECTION 406 OF ERISA OR SECTION 4975 OF THE
        CODE
        WHICH IS NOT COVERED BY PROHIBITED TRANSACTION CLASS EXEMPTION (“PTCE”) 84-14,
        PTCE 90-1, PTCE 91-38, PTCE 95-60, PTCE 96-23 OR SOME OTHER APPLICABLE EXEMPTION
        AND (Y) WILL NOT RESULT IN A NON-EXEMPT VIOLATION OF ANY SUBSTANTIALLY SIMILAR
        APPLICABLE LAW. EACH INVESTOR IN THIS NOTE WILL BE DEEMED TO MAKE THE FOREGOING
        REPRESENTATIONS AND WILL FURTHER BE DEEMED TO REPRESENT, WARRANT AND COVENANT
        THAT IT WILL NOT SELL, PLEDGE OR OTHERWISE TRANSFER THIS NOTE IN VIOLATION
        OF
        THE FOREGOING.

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

      AAMES
        MORTGAGE INVESTMENT TRUST 2006-1

      

       

      CLASS
        M-3
        NOTES

       

      

       

      
        	
                Aggregate
                  Class Principal Amount of

              	
                Class
                  Principal Amount

              
	
                the
                  Class M-3 Notes: $11,619,000.00

              	
                of
                  this Note: $11,619,000.00

                 

              
	
                Interest
                  Rate: Adjustable

              	
                Cut-off
                  Date: April 1, 2006

                 

              
	
                Number:
                  1

              	
                CUSIP
                  No.: 00252G AG 4

              

      

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

      AAMES
        MORTGAGE INVESTMENT TRUST 2006-1, a statutory trust organized and existing
        under
        the laws of the State of Delaware (herein referred to as the “Issuer”), for
        value received, hereby promises to pay to CEDE & CO., or registered assigns,
        the principal sum of ELEVEN MILLION SIX HUNDRED AND NINETEEN
        THOUSAND DOLLARS
        AND NO/100 ($11,619,000.00)
        payable on each Payment Date in an amount equal to the result obtained by
        multiplying (A) the Percentage Interest evidenced by this Note (obtained
        by
        dividing the initial Class Principal Amount of this Note by the initial Class
        Principal Amount of all Class M-3 Notes, both as specified above) and (B)
        the
        amount payable on such Payment Date in respect of principal of the Class
        M-3
        Notes pursuant to the Indenture dated as of April 1, 2006 (as amended and
        supplemented from time to time, the “Indenture”), among the Issuer, Wells Fargo
        Bank, N.A., as Trust Administrator (the “Trust Administrator”) and Deutsche Bank
        National Trust Company, as Indenture Trustee (the “Indenture Trustee”);
provided,
        however,
        that
        the entire unpaid principal amount of this Note shall be due and payable
        on the
        Payment Date occurring in April 2036 (the “Maturity Date”) or as otherwise
        specified in the Indenture. Capitalized terms used but not defined herein
        have
        the meanings assigned to such terms in the Indenture or the Transfer and
        Servicing Agreement dated as of April 1, 2006 (as amended and supplemented
        from
        time to time, the “Transfer and Servicing Agreement”), by and among the Issuer,
        Financial Asset Securities Corp., as depositor (the “Depositor”), Wells Fargo
        Bank, N.A., as trust administrator (in such capacity, the “Trust Administrator”)
        and as master servicer (in such capacity, the “Master Servicer”), Aames Funding
        Corporation, as servicer, Aames Investment Corporation, as seller, and the
        Indenture Trustee, which agreements also contain rules as to construction
        that
        shall be applicable herein.

       

      The
        Issuer will pay interest on this Note at a per annum rate equal to the
        applicable Interest Rate, on the principal amount of this Note outstanding
        on
        the immediately preceding Payment Date (after giving effect to all payments
        of
        principal made on such preceding Payment Date) on each Payment Date until
        the
        principal of this Note is paid or made available for payment in
        full.

       

      Payments
        on this Note will be made on the 25th day of each month or, if such a day
        is not
        a Business Day, then on the next succeeding Business Day, commencing in May
        2006
        (each, a “Payment Date”), to the Person in whose name this Note is registered at
        the close of business on the Business Day immediately preceding such Payment
        Date (the “Record Date”), in an amount equal to the product of the Percentage
        Interest evidenced by this Note and the amount, if any, required to be
        distributed to all the Notes of the Class represented by this Note. All sums
        distributable on this Note are payable in 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. Such principal of and interest on this Note
        shall
        be paid in the manner specified on the reverse hereof.

       

      All
        payments made by the Issuer with respect to this Note shall be applied as
        provided in the Transfer and Servicing Agreement.

       

      Reference
        is made to the further provisions of this Note set forth on the reverse hereof,
        which shall have the same effect as though fully set forth on the face of
        this
        Note. 

       

      Unless
        the certificate of authentication hereon has been executed by the Trust
        Administrator whose name appears below by manual signature, this Note shall
        not
        be entitled to any benefit under the Indenture referred to on the reverse
        hereof, or be valid or obligatory for any purpose. 

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

      IN
        WITNESS WHEREOF, the Issuer has caused this instrument to be signed, manually
        or
        in facsimile, by its Authorized Officer, as of the date set forth below.
        

       

      AAMES
        MORTGAGE INVESTMENT TRUST 2006-1

       

      By: WILMINGTON
        TRUST COMPANY, 

      not
        in
        its individual capacity but solely as Owner Trustee 

      under
        the
        Trust Agreement

       

      By:
        ________________________________________

      Authorized
        Signatory 

       

      Dated:
        ____________________, 2006

       

      TRUST
        ADMINISTRATOR’S CERTIFICATE OF AUTHENTICATION

       

      This
        is
        one of the Notes designated above and referred to in the within-mentioned
        Indenture. 

       

      WELLS
        FARGO BANK, N.A.,

      not
        in
        its individual capacity but solely as Trust Administrator,

       

      By:
        ________________________________________

      Authorized
        Signatory 

       

      Dated:
        ___________________, 2006

       

      

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

      AAMES
        MORTGAGE INVESTMENT TRUST 2006-1

       

      This
        Note
        is one of a duly authorized issue of Notes of the Issuer, all issued under
        the
        Indenture, to which Indenture and all indentures supplemental thereto reference
        is hereby made for a statement of the respective rights and obligations
        thereunder of the Issuer, the Indenture Trustee and the Holders of the Notes.
        To
        the extent that any provision of this Note contradicts or is inconsistent
        with
        the provisions of the Indenture, the provisions of the Indenture shall control
        and supersede such contradictory or inconsistent provision herein. This Note
        is
        subject to all terms of the Indenture. 

       

      The
        Class
        A-1, Class A-2, Class A-3 and Class A-4 Notes (the “Senior Notes”) are, and will
        be, equally and ratably secured by the collateral pledged as security therefor
        as provided in the Indenture. The rights of the Holders of the Class M-1,
        Class
        M-2, Class M-3, Class M-4, Class M-5, Class M-6, Class M-7, Class M-8, Class
        M-9, Class M-10 and Class M-11 Notes (the “Subordinate Notes”) to receive
        payments or distribution of interest and principal are, and will be, subordinate
        to the rights of the Holders of the Senior Notes to receive payments of interest
        and principal, respectively, as provided in the Indenture.

       

      Payments
        to each Noteholder shall be made upon written request made to the Note Registrar
        and Paying Agent at least five Business Days prior to the related Record
        Date by
        the Holder of a Note having an initial Note Principal Amount of not less
        than
        $2,500,000, by wire transfer in immediately available funds to an account
        specified in writing by such Noteholder. The final payment in retirement
        of this
        Note shall be made only upon surrender of this Note to the Note Registrar
        and
        Paying Agent at the office thereof specified in the notice to Noteholders
        of
        such final payment mailed prior to the Payment Date on which the final payment
        is expected to be made to the Holder thereof.

       

      As
        provided in the Indenture and subject to certain limitations set forth therein,
        the transfer of this Note may be registered by the Note Registrar upon surrender
        of this Note for registration of transfer at the office or agency designated
        by
        the Issuer pursuant to the Indenture, duly endorsed by, or accompanied by
        a
        written instrument of transfer in form satisfactory to the Note Registrar
        duly
        executed by, the Holder hereof or such Holder’s attorney duly authorized in
        writing, with such signature guaranteed by an “eligible guarantor institution”
meeting the requirements of the Note Registrar, which requirements include
        membership or participation in the Securities Transfer Agent’s Medallion Program
        (“STAMP”) or such other “signature guarantee program” as may be determined by
        the Note Registrar in addition to, or in substitution for, STAMP, all in
        accordance with the Securities Exchange Act of 1934, as amended, and thereupon
        one or more new Notes of authorized denominations and in the same aggregate
        principal amount will be issued to the designated transferee or transferees.
        No
        service charge will be charged for any registration of transfer or exchange
        of
        this Note, but the transferor may be required to pay a sum sufficient to
        cover
        any tax or other governmental charge that may be imposed in connection with
        any
        such registration of transfer or exchange. 

       

      The
        Notes
        will be issued in minimum denominations of $25,000 in original principal
        amount
        and integral multiples of $1 in excess thereof, provided, that the initial
        sale
        of any Notes shall be in increments of no less than $100,000.

       

      The
        Notes
        are subject to optional redemption in accordance with the Indenture and the
        Transfer and Servicing Agreement. 

       

      Each
        Noteholder and Note Owner, by acceptance of a Note or, in the case of a Note
        Owner, a beneficial interest in a Note, covenants and agrees that no recourse
        may be taken, directly or indirectly, with respect to the obligations of
        the
        Issuer, the Owner Trustee or the Indenture Trustee on the Notes or under
        the
        Indenture or any certificate or other writing delivered in connection therewith,
        against (i) the Indenture Trustee, or the Owner Trustee in their respective
        individual capacities, (ii) any owner of a beneficial interest in the Issuer
        or
        (iii) any partner, owner, beneficiary, agent, officer, director or employee
        of
        the Indenture Trustee or the Owner Trustee in its individual capacity, any
        holder of a beneficial interest in the Issuer, the Owner Trustee or the
        Indenture Trustee or of any successor or assign of the Indenture Trustee
        or the
        Owner Trustee in its individual capacity, except as any such Person may have
        expressly agreed and except that any such partner, owner or beneficiary shall
        be
        fully liable, to the extent provided by applicable law, for any unpaid
        consideration for stock, unpaid capital contribution or failure to pay any
        installment or call owing to such entity.

       

      Each
        Noteholder and Note Owner, by acceptance of a Note or, in the case of a Note
        Owner, a beneficial interest in a Note, covenants and agrees by accepting
        the
        benefits of the Indenture that such Noteholder or Note Owner will not at
        any
        time institute against the Depositor or the Issuer, or join in any institution
        against the Depositor or the Issuer of, any bankruptcy, reorganization,
        arrangement, insolvency or liquidation proceedings under any United States
        federal or state bankruptcy or similar law in connection with any obligations
        relating to the Notes, the Indenture or the other Operative Agreements.

       

      Each
        Noteholder and Note Owner, by acceptance of a Note or, in the case of a Note
        Owner, a beneficial interest in a Note, consents to and agrees to be bound
        by
        the terms and conditions of the Indenture.

       

      The
        Issuer has entered into the Indenture and this Note is issued with the intention
        that, for federal, state and local income, single business and franchise
        tax
        purposes, the Notes will qualify as indebtedness of the Issuer secured by
        the
        Collateral. Each Noteholder, by acceptance of a Note (and each Note Owner
        by
        acceptance of a beneficial interest in a Note), agrees to treat the Notes
        for
        all federal, state and local income tax purposes as indebtedness (except
        that
        any Note held by a person that, for federal income tax purposes, owns or
        is
        treated as owning a 100% Percentage Interest of the Ownership Certificate
        shall
        not be treated as outstanding indebtedness). 

       

      Prior
        to
        the due presentment for registration of transfer of this Note, the Issuer,
        the
        Indenture Trustee, the Trust Administrator, the Note Registrar, the Paying
        Agent
        and any agent of the Issuer, the Indenture Trustee, the Trust Administrator,
        the
        Note Registrar or the Paying Agent may treat the Person in whose name this
        Note
        (as of the day of determination or as of such other date as may be specified
        in
        the Indenture) is registered as the owner hereof for all purposes, whether
        or
        not this Note be overdue, and none of the Issuer, the Indenture Trustee,
        the
        Note Registrar, the Paying Agent or any such agent shall be affected by notice
        to the contrary. 

       

      The
        Indenture permits, with certain exceptions as therein provided, the amendment
        thereof by supplemental indenture and the modification of the rights and
        obligations of the Issuer and the rights of the Holders of the Notes under
        the
        Indenture at any time by the Depositor, the Issuer and the Indenture Trustee
        with the consent of the Holders of not less than 66-2/3% of the Outstanding
        Balance of the Notes for the purpose of adding any provisions to or changing
        in
        any manner or eliminating any of the provisions of the Indenture or of modifying
        in any manner the rights of the Noteholders. Any such consent or waiver by
        the
        Holder of this Note (or any one or more Predecessor Notes) shall be conclusive
        and binding upon such Holder and upon all future Holders of this Note and
        of any
        Note issued upon the registration of transfer hereof or in exchange hereof
        or in
        lieu hereof whether or not notation of such consent or waiver is made upon this
        Note. The Indenture also permits the amendment thereof, in certain limited
        circumstances, or the waiver of certain terms and conditions set forth in
        the
        Indenture, without the consent of Holders of the Notes issued thereunder.
        

       

      The
        term
“Issuer” as used in this Note includes any successor to the Issuer under the
        Indenture. 

       

      The
        Notes
        are issuable only in registered form in denominations as provided in the
        Indenture, subject to certain limitations therein set forth. 

       

      THIS
        NOTE
        AND THE INDENTURE SHALL BE GOVERNED BY AND CONSTRUED IN ACCORDANCE WITH THE
        LAWS
        OF THE STATE OF NEW YORK, WITHOUT REFERENCE TO ITS CONFLICT OF LAW PROVISIONS
        (OTHER THAN SECTION 5-1401 OF THE GENERAL OBLIGATIONS LAW), AND THE OBLIGATIONS,
        RIGHTS AND REMEDIES OF THE PARTIES HEREUNDER SHALL BE DETERMINED IN ACCORDANCE
        WITH SUCH LAWS. 

       

      No
        reference herein to the Indenture and no provision of this Note or of the
        Indenture shall alter or impair the obligation of the Issuer, which is absolute
        and unconditional, to pay the principal of and interest on this Note at the
        times, place and rate, and in the coin or currency herein prescribed.

       

      Anything
        herein to the contrary notwithstanding, except as expressly provided in the
        Operative Agreements, none of the Issuer in its individual capacity, the
        Owner
        Trustee in its individual capacity, the Indenture Trustee in its individual
        capacity, any owner of a beneficial interest in the Issuer, the Trust
        Administrator in its individual capacity, the Note Registrar, the Paying
        Agent
        or any of their respective partners, beneficiaries, agents, officers, directors,
        employees or successors or assigns shall be personally liable for, nor shall
        recourse be had to any of them for, the payment of principal of or interest
        on
        this Note or performance of, or omission to perform, any of the covenants,
        obligations or indemnifications contained in the Indenture. The Holder of
        this
        Note by its acceptance hereof agrees that, except as expressly provided in
        the
        Operative Agreements, in the case of an Event of Default under the Indenture,
        the Holder shall have no claim against any of the foregoing for any deficiency,
        loss or claim therefrom; provided,
        however,
        that
        nothing contained herein shall be taken to prevent recourse to, and enforcement
        against, the assets of the Issuer for any and all liabilities, obligations
        and
        undertakings contained in the Indenture or in this Note. 

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

      ASSIGNMENT

       

      Social
        Security or taxpayer I.D. or other identifying number of assignee:
        ________________________

       

      FOR
        VALUE
        RECEIVED, the undersigned hereby sells, assigns and transfers unto:

       

      
        	 	 	 

      

      (name
        and
        address of assignee)

       

      the
        within Note and all rights thereunder, and hereby irrevocably constitutes
        and
        appoints ________________________, attorney, to transfer said Note on the
        books
        kept for registration thereof, with full power of substitution in the premises.
        

       

      Dated:__________________________*/

       

      Signature
        Guaranteed: 

       

      ________________________________*/
        

       

      

       

      */
        NOTICE:
        The signature to this assignment must correspond with the name of the registered
        owner as it appears on the face of the within Note in every particular, without
        alteration, enlargement or any change whatever. Such signature must be
        guaranteed by an “eligible guarantor institution” meeting the requirements of
        the Note Registrar, which requirements include membership or participation
        in
        STAMP or such other “signature guarantee program” as may be determined by the
        Note Registrar in addition to, or in substitution for, STAMP, all in accordance
        with the Securities Exchange Act of 1934, as amended.

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

      UNLESS
        THIS NOTE IS PRESENTED BY AN AUTHORIZED REPRESENTATIVE OF THE DEPOSITORY
        TRUST
        COMPANY, A NEW YORK CORPORATION (“DTC”), TO THE ISSUER OR ITS AGENT FOR
        REGISTRATION OF TRANSFER, EXCHANGE OR PAYMENT, AND ANY NOTE ISSUED IS REGISTERED
        IN THE NAME OF CEDE & CO. OR IN SUCH OTHER NAME AS IS REQUESTED BY AN
        AUTHORIZED REPRESENTATIVE OF DTC (AND ANY PAYMENT IS MADE TO CEDE & CO. OR
        TO SUCH OTHER ENTITY AS IS REQUESTED BY AN AUTHORIZED REPRESENTATIVE OF DTC),
        ANY TRANSFER, PLEDGE OR OTHER USE HEREOF FOR VALUE OR OTHERWISE BY OR TO
        ANY
        PERSON IS WRONGFUL INASMUCH AS THE REGISTERED OWNER HEREOF, CEDE & CO., HAS
        AN INTEREST HEREIN.

       

      THIS
        NOTE
        DOES NOT EVIDENCE AN OBLIGATION OF OR AN INTEREST IN, AND IS NOT GUARANTEED
        BY,
        THE ISSUER, THE DEPOSITOR, THE MASTER SERVICER, THE SELLER, THE SERVICER,
        THE
        INDENTURE TRUSTEE, THE OWNER TRUSTEE, THE TRUST ADMINISTRATOR, OR ANY AFFILIATE
        OF ANY OF THEM AND IS NOT INSURED OR GUARANTEED BY ANY GOVERNMENTAL AGENCY
        OR
        PRIVATE INSURER.

       

      THE
        PRINCIPAL OF THIS NOTE IS PAYABLE IN INSTALLMENTS AS SET FORTH HEREIN.
        ACCORDINGLY, THE OUTSTANDING PRINCIPAL AMOUNT OF THIS NOTE AT ANY TIME MAY
        BE
        LESS THAN THE AMOUNT SHOWN ON THE FACE HEREOF.

       

      THIS
        NOTE
        IS SUBORDINATE IN RIGHT OF PAYMENT AS PROVIDED IN THE INDENTURE REFERRED
        TO
        HEREIN.

       

      EACH
        PURCHASER OF THIS NOTE WILL BE DEEMED TO HAVE MADE THE REPRESENTATIONS AND
        AGREEMENTS SET FORTH IN SECTION 2.03 OF THE INDENTURE. ANY TRANSFER IN VIOLATION
        OF THE FOREGOING WILL BE OF NO FORCE AND EFFECT, WILL BE VOID AB
        INITIO,
        AND
        WILL NOT OPERATE TO TRANSFER ANY RIGHTS TO THE TRANSFEREE, NOTWITHSTANDING
        ANY
        INSTRUCTIONS TO THE CONTRARY TO THE ISSUER, THE INDENTURE TRUSTEE OR ANY
        INTERMEDIARY.

       

      THIS
        NOTE
        MAY NOT BE ACQUIRED BY A TRANSFEREE FOR, OR ON BEHALF OF AN EMPLOYEE BENEFIT
        PLAN OR OTHER RETIREMENT ARRANGEMENT THAT IS SUBJECT TO THE EMPLOYEE RETIREMENT
        INCOME SECURITY ACT OF 1974, AS AMENDED (“ERISA”) OR SECTION 4975 OF THE
        INTERNAL REVENUE CODE OF 1986, AS AMENDED (THE “CODE”) OR TO ANY SUBSTANTIALLY
        SIMILAR LAW (“SIMILAR LAW”) OR ANY ENTITY DEEMED TO HOLD THE PLAN ASSETS OF THE
        FOREGOING (“BENEFIT PLAN”), UNLESS THE TRANSFEREE REPRESENTS AND WARRANTS THAT
        THE ACQUISITION AND HOLDING OF THIS NOTE: (X) WILL NOT RESULT IN A NON-EXEMPT
        PROHIBITED TRANSACTION UNDER SECTION 406 OF ERISA OR SECTION 4975 OF THE
        CODE
        WHICH IS NOT COVERED BY PROHIBITED TRANSACTION CLASS EXEMPTION (“PTCE”) 84-14,
        PTCE 90-1, PTCE 91-38, PTCE 95-60, PTCE 96-23 OR SOME OTHER APPLICABLE EXEMPTION
        AND (Y) WILL NOT RESULT IN A NON-EXEMPT VIOLATION OF ANY SUBSTANTIALLY SIMILAR
        APPLICABLE LAW. EACH INVESTOR IN THIS NOTE WILL BE DEEMED TO MAKE THE FOREGOING
        REPRESENTATIONS AND WILL FURTHER BE DEEMED TO REPRESENT, WARRANT AND COVENANT
        THAT IT WILL NOT SELL, PLEDGE OR OTHERWISE TRANSFER THIS NOTE IN VIOLATION
        OF
        THE FOREGOING.

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

      AAMES
        MORTGAGE INVESTMENT TRUST 2006-1

      

       

      CLASS
        M-4
        NOTES

       

      

       

      
        	
                Aggregate
                  Class Principal Amount of

              	
                Class
                  Principal Amount

              
	
                the
                  Class M-4 Notes: $11,313,000.00

              	
                of
                  this Note: $11,313,000.00

                 

              
	
                Interest
                  Rate: Adjustable

              	
                Cut-off
                  Date: April 1, 2006

                 

              
	
                Number:
                  1

              	
                CUSIP
                  No.: 00252G AH 2

              

      

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

      AAMES
        MORTGAGE INVESTMENT TRUST 2006-1, a statutory trust organized and existing
        under
        the laws of the State of Delaware (herein referred to as the “Issuer”), for
        value received, hereby promises to pay to CEDE & CO., or registered assigns,
        the principal sum of ELEVEN MILLION THREE HUNDRED AND THIRTEEN THOUSAND DOLLARS
        AND NO/100 ($11,313,000.00)
        payable on each Payment Date in an amount equal to the result obtained by
        multiplying (A) the Percentage Interest evidenced by this Note (obtained
        by
        dividing the initial Class Principal Amount of this Note by the initial Class
        Principal Amount of all Class M-4 Notes, both as specified above) and (B)
        the
        amount payable on such Payment Date in respect of principal of the Class
        M-4
        Notes pursuant to the Indenture dated as of April 1, 2006 (as amended and
        supplemented from time to time, the “Indenture”), between the Issuer, Wells
        Fargo Bank, N.A., as Trust Administrator (the “Trust Administrator”) and
        Deutsche Bank National Trust Company, as Indenture Trustee (the “Indenture
        Trustee”); provided,
        however,
        that
        the entire unpaid principal amount of this Note shall be due and payable
        on the
        Payment Date occurring in April 2036 (the “Maturity Date”) or as otherwise
        specified in the Indenture. Capitalized terms used but not defined herein
        have
        the meanings assigned to such terms in the Indenture or the Transfer and
        Servicing Agreement dated as of April 1, 2006 (as amended and supplemented
        from
        time to time, the “Transfer and Servicing Agreement”), by and among the Issuer,
        Financial Asset Securities Corp., as depositor (the “Depositor”), Wells Fargo
        Bank, N.A., as trust administrator (in such capacity, the “Trust Administrator”)
        and as master servicer (in such capacity, the “Master Servicer”), Aames Funding
        Corporation, as servicer, Aames Investment Corporation, as seller, and the
        Indenture Trustee, which agreements also contain rules as to construction
        that
        shall be applicable herein.

       

      The
        Issuer will pay interest on this Note at a per annum rate equal to the
        applicable Interest Rate, on the principal amount of this Note outstanding
        on
        the immediately preceding Payment Date (after giving effect to all payments
        of
        principal made on such preceding Payment Date) on each Payment Date until
        the
        principal of this Note is paid or made available for payment in
        full.

       

      Payments
        on this Note will be made on the 25th day of each month or, if such a day
        is not
        a Business Day, then on the next succeeding Business Day, commencing in May
        2006
        (each, a “Payment Date”), to the Person in whose name this Note is registered at
        the close of business on the Business Day immediately preceding such Payment
        Date (the “Record Date”), in an amount equal to the product of the Percentage
        Interest evidenced by this Note and the amount, if any, required to be
        distributed to all the Notes of the Class represented by this Note. All sums
        distributable on this Note are payable in 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. Such principal of and interest on this Note
        shall
        be paid in the manner specified on the reverse hereof.

       

      All
        payments made by the Issuer with respect to this Note shall be applied as
        provided in the Transfer and Servicing Agreement.

       

      Reference
        is made to the further provisions of this Note set forth on the reverse hereof,
        which shall have the same effect as though fully set forth on the face of
        this
        Note. 

       

      Unless
        the certificate of authentication hereon has been executed by the Trust
        Administrator whose name appears below by manual signature, this Note shall
        not
        be entitled to any benefit under the Indenture referred to on the reverse
        hereof, or be valid or obligatory for any purpose. 

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

      IN
        WITNESS WHEREOF, the Issuer has caused this instrument to be signed, manually
        or
        in facsimile, by its Authorized Officer, as of the date set forth below.
        

       

      AAMES
        MORTGAGE INVESTMENT TRUST 2006-1

       

      By: WILMINGTON
        TRUST COMPANY, 

      not
        in
        its individual capacity but solely as Owner Trustee 

      under
        the
        Trust Agreement

       

      By:
        ________________________________________

      Authorized
        Signatory 

       

      Dated:
        ____________________, 2006

       

      TRUST
        ADMINISTRATOR’S CERTIFICATE OF AUTHENTICATION

       

      This
        is
        one of the Notes designated above and referred to in the within-mentioned
        Indenture. 

       

      WELLS
        FARGO BANK, N.A.,

      not
        in
        its individual capacity but solely as Trust Administrator,

       

      By:
        ________________________________________

      Authorized
        Signatory 

       

      Dated:
        ___________________, 2006

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

      AAMES
        MORTGAGE INVESTMENT TRUST 2006-1

       

      This
        Note
        is one of a duly authorized issue of Notes of the Issuer, all issued under
        the
        Indenture, to which Indenture and all indentures supplemental thereto reference
        is hereby made for a statement of the respective rights and obligations
        thereunder of the Issuer, the Indenture Trustee and the Holders of the Notes.
        To
        the extent that any provision of this Note contradicts or is inconsistent
        with
        the provisions of the Indenture, the provisions of the Indenture shall control
        and supersede such contradictory or inconsistent provision herein. This Note
        is
        subject to all terms of the Indenture. 

       

      The
        Class
        A-1, Class A-2, Class A-3 and Class A-4 Notes (the “Senior Notes”) are, and will
        be, equally and ratably secured by the collateral pledged as security therefor
        as provided in the Indenture. The rights of the Holders of the Class M-1,
        Class
        M-2, Class M-3, Class M-4, Class M-5, Class M-6, Class M-7, Class M-8, Class
        M-9, Class M-10 and Class M-11 Notes (the “Subordinate Notes”) to receive
        payments or distribution of interest and principal are, and will be, subordinate
        to the rights of the Holders of the Senior Notes to receive payments of interest
        and principal, respectively, as provided in the Indenture.

       

      Payments
        to each Noteholder shall be made upon written request made to the Note Registrar
        and Paying Agent at least five Business Days prior to the related Record
        Date by
        the Holder of a Note having an initial Note Principal Amount of not less
        than
        $2,500,000, by wire transfer in immediately available funds to an account
        specified in writing by such Noteholder. The final payment in retirement
        of this
        Note shall be made only upon surrender of this Note to the Note Registrar
        and
        Paying Agent at the office thereof specified in the notice to Noteholders
        of
        such final payment mailed prior to the Payment Date on which the final payment
        is expected to be made to the Holder thereof.

       

      As
        provided in the Indenture and subject to certain limitations set forth therein,
        the transfer of this Note may be registered by the Note Registrar upon surrender
        of this Note for registration of transfer at the office or agency designated
        by
        the Issuer pursuant to the Indenture, duly endorsed by, or accompanied by
        a
        written instrument of transfer in form satisfactory to the Note Registrar
        duly
        executed by, the Holder hereof or such Holder’s attorney duly authorized in
        writing, with such signature guaranteed by an “eligible guarantor institution”
meeting the requirements of the Note Registrar, which requirements include
        membership or participation in the Securities Transfer Agent’s Medallion Program
        (“STAMP”) or such other “signature guarantee program” as may be determined by
        the Note Registrar in addition to, or in substitution for, STAMP, all in
        accordance with the Securities Exchange Act of 1934, as amended, and thereupon
        one or more new Notes of authorized denominations and in the same aggregate
        principal amount will be issued to the designated transferee or transferees.
        No
        service charge will be charged for any registration of transfer or exchange
        of
        this Note, but the transferor may be required to pay a sum sufficient to
        cover
        any tax or other governmental charge that may be imposed in connection with
        any
        such registration of transfer or exchange. 

       

      The
        Notes
        will be issued in minimum denominations of $25,000 in original principal
        amount
        and integral multiples of $1 in excess thereof, provided, that the initial
        sale
        of any Notes shall be in increments of no less than $100,000.

       

      The
        Notes
        are subject to optional redemption in accordance with the Indenture and the
        Transfer and Servicing Agreement. 

       

      Each
        Noteholder and Note Owner, by acceptance of a Note or, in the case of a Note
        Owner, a beneficial interest in a Note, covenants and agrees that no recourse
        may be taken, directly or indirectly, with respect to the obligations of
        the
        Issuer, the Owner Trustee or the Indenture Trustee on the Notes or under
        the
        Indenture or any certificate or other writing delivered in connection therewith,
        against (i) the Indenture Trustee, or the Owner Trustee in their respective
        individual capacities, (ii) any owner of a beneficial interest in the Issuer
        or
        (iii) any partner, owner, beneficiary, agent, officer, director or employee
        of
        the Indenture Trustee or the Owner Trustee in its individual capacity, any
        holder of a beneficial interest in the Issuer, the Owner Trustee or the
        Indenture Trustee or of any successor or assign of the Indenture Trustee
        or the
        Owner Trustee in its individual capacity, except as any such Person may have
        expressly agreed and except that any such partner, owner or beneficiary shall
        be
        fully liable, to the extent provided by applicable law, for any unpaid
        consideration for stock, unpaid capital contribution or failure to pay any
        installment or call owing to such entity.

       

      Each
        Noteholder and Note Owner, by acceptance of a Note or, in the case of a Note
        Owner, a beneficial interest in a Note, covenants and agrees by accepting
        the
        benefits of the Indenture that such Noteholder or Note Owner will not at
        any
        time institute against the Depositor or the Issuer, or join in any institution
        against the Depositor or the Issuer of, any bankruptcy, reorganization,
        arrangement, insolvency or liquidation proceedings under any United States
        federal or state bankruptcy or similar law in connection with any obligations
        relating to the Notes, the Indenture or the other Operative Agreements.

       

      Each
        Noteholder and Note Owner, by acceptance of a Note or, in the case of a Note
        Owner, a beneficial interest in a Note, consents to and agrees to be bound
        by
        the terms and conditions of the Indenture.

       

      The
        Issuer has entered into the Indenture and this Note is issued with the intention
        that, for federal, state and local income, single business and franchise
        tax
        purposes, the Notes will qualify as indebtedness of the Issuer secured by
        the
        Collateral. Each Noteholder, by acceptance of a Note (and each Note Owner
        by
        acceptance of a beneficial interest in a Note), agrees to treat the Notes
        for
        all federal, state and local income tax purposes as indebtedness (except
        that
        any Note held by a person that, for federal income tax purposes, owns or
        is
        treated as owning a 100% Percentage Interest of the Ownership Certificate
        shall
        not be treated as outstanding indebtedness). 

       

      Prior
        to
        the due presentment for registration of transfer of this Note, the Issuer,
        the
        Indenture Trustee, the Trust Administrator, the Note Registrar, the Paying
        Agent
        and any agent of the Issuer, the Indenture Trustee, the Trust Administrator,
        the
        Note Registrar or the Paying Agent may treat the Person in whose name this
        Note
        (as of the day of determination or as of such other date as may be specified
        in
        the Indenture) is registered as the owner hereof for all purposes, whether
        or
        not this Note be overdue, and none of the Issuer, the Indenture Trustee,
        the
        Note Registrar, the Paying Agent or any such agent shall be affected by notice
        to the contrary. 

       

      The
        Indenture permits, with certain exceptions as therein provided, the amendment
        thereof by supplemental indenture and the modification of the rights and
        obligations of the Issuer and the rights of the Holders of the Notes under
        the
        Indenture at any time by the Depositor, the Issuer and the Indenture Trustee
        with the consent of the Holders of not less than 66-2/3% of the Outstanding
        Balance of the Notes for the purpose of adding any provisions to or changing
        in
        any manner or eliminating any of the provisions of the Indenture or of modifying
        in any manner the rights of the Noteholders. Any such consent or waiver by
        the
        Holder of this Note (or any one or more Predecessor Notes) shall be conclusive
        and binding upon such Holder and upon all future Holders of this Note and
        of any
        Note issued upon the registration of transfer hereof or in exchange hereof
        or in
        lieu hereof whether or not notation of such consent or waiver is made upon
        this
        Note. The Indenture also permits the amendment thereof, in certain limited
        circumstances, or the waiver of certain terms and conditions set forth in
        the
        Indenture, without the consent of Holders of the Notes issued thereunder.
        

       

      The
        term
“Issuer” as used in this Note includes any successor to the Issuer under the
        Indenture. 

       

      The
        Notes
        are issuable only in registered form in denominations as provided in the
        Indenture, subject to certain limitations therein set forth. 

       

      THIS
        NOTE
        AND THE INDENTURE SHALL BE GOVERNED BY AND CONSTRUED IN ACCORDANCE WITH THE
        LAWS
        OF THE STATE OF NEW YORK, WITHOUT REFERENCE TO ITS CONFLICT OF LAW PROVISIONS
        (OTHER THAN SECTION 5-1401 OF THE GENERAL OBLIGATIONS LAW), AND THE OBLIGATIONS,
        RIGHTS AND REMEDIES OF THE PARTIES HEREUNDER SHALL BE DETERMINED IN ACCORDANCE
        WITH SUCH LAWS. 

       

      No
        reference herein to the Indenture and no provision of this Note or of the
        Indenture shall alter or impair the obligation of the Issuer, which is absolute
        and unconditional, to pay the principal of and interest on this Note at the
        times, place and rate, and in the coin or currency herein prescribed.

       

      Anything
        herein to the contrary notwithstanding, except as expressly provided in the
        Operative Agreements, none of the Issuer in its individual capacity, the
        Owner
        Trustee in its individual capacity, the Indenture Trustee in its individual
        capacity, any owner of a beneficial interest in the Issuer, the Trust
        Administrator in its individual capacity, the Note Registrar, the Paying
        Agent
        or any of their respective partners, beneficiaries, agents, officers, directors,
        employees or successors or assigns shall be personally liable for, nor shall
        recourse be had to any of them for, the payment of principal of or interest
        on
        this Note or performance of, or omission to perform, any of the covenants,
        obligations or indemnifications contained in the Indenture. The Holder of
        this
        Note by its acceptance hereof agrees that, except as expressly provided in
        the
        Operative Agreements, in the case of an Event of Default under the Indenture,
        the Holder shall have no claim against any of the foregoing for any deficiency,
        loss or claim therefrom; provided,
        however,
        that
        nothing contained herein shall be taken to prevent recourse to, and enforcement
        against, the assets of the Issuer for any and all liabilities, obligations
        and
        undertakings contained in the Indenture or in this Note. 

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

      ASSIGNMENT

       

      Social
        Security or taxpayer I.D. or other identifying number of assignee:
        ________________________

       

      FOR
        VALUE
        RECEIVED, the undersigned hereby sells, assigns and transfers unto:

       

      
        	 	 	 

      

      (name
        and
        address of assignee)

       

      the
        within Note and all rights thereunder, and hereby irrevocably constitutes
        and
        appoints ________________________, attorney, to transfer said Note on the
        books
        kept for registration thereof, with full power of substitution in the premises.
        

       

      Dated:__________________________*/

       

      Signature
        Guaranteed: 

       

      ________________________________*/
        

       

      

       

      */
        NOTICE:
        The signature to this assignment must correspond with the name of the registered
        owner as it appears on the face of the within Note in every particular, without
        alteration, enlargement or any change whatever. Such signature must be
        guaranteed by an “eligible guarantor institution” meeting the requirements of
        the Note Registrar, which requirements include membership or participation
        in
        STAMP or such other “signature guarantee program” as may be determined by the
        Note Registrar in addition to, or in substitution for, STAMP, all in accordance
        with the Securities Exchange Act of 1934, as amended.

       

      

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

      UNLESS
        THIS NOTE IS PRESENTED BY AN AUTHORIZED REPRESENTATIVE OF THE DEPOSITORY
        TRUST
        COMPANY, A NEW YORK CORPORATION (“DTC”), TO THE ISSUER OR ITS AGENT FOR
        REGISTRATION OF TRANSFER, EXCHANGE OR PAYMENT, AND ANY NOTE ISSUED IS REGISTERED
        IN THE NAME OF CEDE & CO. OR IN SUCH OTHER NAME AS IS REQUESTED BY AN
        AUTHORIZED REPRESENTATIVE OF DTC (AND ANY PAYMENT IS MADE TO CEDE & CO. OR
        TO SUCH OTHER ENTITY AS IS REQUESTED BY AN AUTHORIZED REPRESENTATIVE OF DTC),
        ANY TRANSFER, PLEDGE OR OTHER USE HEREOF FOR VALUE OR OTHERWISE BY OR TO
        ANY
        PERSON IS WRONGFUL INASMUCH AS THE REGISTERED OWNER HEREOF, CEDE & CO., HAS
        AN INTEREST HEREIN.

       

      THIS
        NOTE
        DOES NOT EVIDENCE AN OBLIGATION OF OR AN INTEREST IN, AND IS NOT GUARANTEED
        BY,
        THE ISSUER, THE DEPOSITOR, THE MASTER SERVICER, THE SELLER, THE SERVICER,
        THE
        INDENTURE TRUSTEE, THE OWNER TRUSTEE, THE TRUST ADMINISTRATOR, OR ANY AFFILIATE
        OF ANY OF THEM AND IS NOT INSURED OR GUARANTEED BY ANY GOVERNMENTAL AGENCY
        OR
        PRIVATE INSURER.

       

      THE
        PRINCIPAL OF THIS NOTE IS PAYABLE IN INSTALLMENTS AS SET FORTH HEREIN.
        ACCORDINGLY, THE OUTSTANDING PRINCIPAL AMOUNT OF THIS NOTE AT ANY TIME MAY
        BE
        LESS THAN THE AMOUNT SHOWN ON THE FACE HEREOF.

       

      THIS
        NOTE
        IS SUBORDINATE IN RIGHT OF PAYMENT AS PROVIDED IN THE INDENTURE REFERRED
        TO
        HEREIN.

       

      EACH
        PURCHASER OF THIS NOTE WILL BE DEEMED TO HAVE MADE THE REPRESENTATIONS AND
        AGREEMENTS SET FORTH IN SECTION 2.03 OF THE INDENTURE. ANY TRANSFER IN VIOLATION
        OF THE FOREGOING WILL BE OF NO FORCE AND EFFECT, WILL BE VOID AB
        INITIO,
        AND
        WILL NOT OPERATE TO TRANSFER ANY RIGHTS TO THE TRANSFEREE, NOTWITHSTANDING
        ANY
        INSTRUCTIONS TO THE CONTRARY TO THE ISSUER, THE INDENTURE TRUSTEE OR ANY
        INTERMEDIARY.

       

      THIS
        NOTE
        MAY NOT BE ACQUIRED BY A TRANSFEREE FOR, OR ON BEHALF OF AN EMPLOYEE BENEFIT
        PLAN OR OTHER RETIREMENT ARRANGEMENT THAT IS SUBJECT TO THE EMPLOYEE RETIREMENT
        INCOME SECURITY ACT OF 1974, AS AMENDED (“ERISA”) OR SECTION 4975 OF THE
        INTERNAL REVENUE CODE OF 1986, AS AMENDED (THE “CODE”) OR TO ANY SUBSTANTIALLY
        SIMILAR LAW (“SIMILAR LAW”) OR ANY ENTITY DEEMED TO HOLD THE PLAN ASSETS OF THE
        FOREGOING (“BENEFIT PLAN”), UNLESS THE TRANSFEREE REPRESENTS AND WARRANTS THAT
        THE ACQUISITION AND HOLDING OF THIS NOTE: (X) WILL NOT RESULT IN A NON-EXEMPT
        PROHIBITED TRANSACTION UNDER SECTION 406 OF ERISA OR SECTION 4975 OF THE
        CODE
        WHICH IS NOT COVERED BY PROHIBITED TRANSACTION CLASS EXEMPTION (“PTCE”) 84-14,
        PTCE 90-1, PTCE 91-38, PTCE 95-60, PTCE 96-23 OR SOME OTHER APPLICABLE EXEMPTION
        AND (Y) WILL NOT RESULT IN A NON-EXEMPT VIOLATION OF ANY SUBSTANTIALLY SIMILAR
        APPLICABLE LAW. EACH INVESTOR IN THIS NOTE WILL BE DEEMED TO MAKE THE FOREGOING
        REPRESENTATIONS AND WILL FURTHER BE DEEMED TO REPRESENT, WARRANT AND COVENANT
        THAT IT WILL NOT SELL, PLEDGE OR OTHERWISE TRANSFER THIS NOTE IN VIOLATION
        OF
        THE FOREGOING.

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

      AAMES
        MORTGAGE INVESTMENT TRUST 2006-1

      

       

      CLASS
        M-5
        NOTES

       

      

       

      
        	
                Aggregate
                  Class Principal Amount of

              	
                Class
                  Principal Amount

              
	
                the
                  Class M-5 Notes: $9,785,000.00

              	
                of
                  this Note: $9,785,000.00

                 

              
	
                Interest
                  Rate: Adjustable

              	
                Cut-off
                  Date: April 1, 2006

                 

              
	
                Number:
                  1

              	
                CUSIP
                  No.: 00252G AJ 8

              

      

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

      AAMES
        MORTGAGE INVESTMENT TRUST 2006-1, a statutory trust organized and existing
        under
        the laws of the State of Delaware (herein referred to as the “Issuer”), for
        value received, hereby promises to pay to CEDE & CO., or registered assigns,
        the principal sum of NINE MILLION SEVEN HUNDRED AND EIGHTY-FIVE THOUSAND
        DOLLARS
        AND NO/100 ($9,785,000.00)
        payable on each Payment Date in an amount equal to the result obtained by
        multiplying (A) the Percentage Interest evidenced by this Note (obtained
        by
        dividing the initial Class Principal Amount of this Note by the initial Class
        Principal Amount of all Class M-5 Notes, both as specified above) and (B)
        the
        amount payable on such Payment Date in respect of principal of the Class
        M-5
        Notes pursuant to the Indenture dated as of April 1, 2006 (as amended and
        supplemented from time to time, the “Indenture”), among the Issuer, Wells Fargo
        Bank, N.A., as Trust Administrator (the “Trust Administrator”) and Deutsche Bank
        National Trust Company, as Indenture Trustee (the “Indenture Trustee”);
provided,
        however,
        that
        the entire unpaid principal amount of this Note shall be due and payable
        on the
        Payment Date occurring in April 2036 (the “Maturity Date”) or as otherwise
        specified in the Indenture. Capitalized terms used but not defined herein
        have
        the meanings assigned to such terms in the Indenture or the Transfer and
        Servicing Agreement dated as of April 1, 2006 (as amended and supplemented
        from
        time to time, the “Transfer and Servicing Agreement”), by and among the Issuer,
        Financial Asset Securities Corp., as depositor (the “Depositor”), Wells Fargo
        Bank, N.A., as trust administrator (in such capacity, the “Trust Administrator”)
        and as master servicer (in such capacity, the “Master Servicer”), Aames Funding
        Corporation, as servicer, Aames Investment Corporation, as seller, and the
        Indenture Trustee, which agreements also contain rules as to construction
        that
        shall be applicable herein.

       

      The
        Issuer will pay interest on this Note at a per annum rate equal to the
        applicable Interest Rate, on the principal amount of this Note outstanding
        on
        the immediately preceding Payment Date (after giving effect to all payments
        of
        principal made on such preceding Payment Date) on each Payment Date until
        the
        principal of this Note is paid or made available for payment in
        full.

       

      Payments
        on this Note will be made on the 25th day of each month or, if such a day
        is not
        a Business Day, then on the next succeeding Business Day, commencing in May
        2006
        (each, a “Payment Date”), to the Person in whose name this Note is registered at
        the close of business on the Business Day immediately preceding such Payment
        Date (the “Record Date”), in an amount equal to the product of the Percentage
        Interest evidenced by this Note and the amount, if any, required to be
        distributed to all the Notes of the Class represented by this Note. All sums
        distributable on this Note are payable in 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. Such principal of and interest on this Note
        shall
        be paid in the manner specified on the reverse hereof.

       

      All
        payments made by the Issuer with respect to this Note shall be applied as
        provided in the Transfer and Servicing Agreement.

       

      Reference
        is made to the further provisions of this Note set forth on the reverse hereof,
        which shall have the same effect as though fully set forth on the face of
        this
        Note. 

       

      Unless
        the certificate of authentication hereon has been executed by the Trust
        Administrator whose name appears below by manual signature, this Note shall
        not
        be entitled to any benefit under the Indenture referred to on the reverse
        hereof, or be valid or obligatory for any purpose. 

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

      IN
        WITNESS WHEREOF, the Issuer has caused this instrument to be signed, manually
        or
        in facsimile, by its Authorized Officer, as of the date set forth below.
        

       

      AAMES
        MORTGAGE INVESTMENT TRUST 2006-1

       

      By: WILMINGTON
        TRUST COMPANY, 

      not
        in
        its individual capacity but solely as Owner Trustee 

      under
        the
        Trust Agreement

       

      By:
        ________________________________________

      Authorized
        Signatory 

       

      Dated:
        ____________________, 2006

       

      TRUST
        ADMINISTRATOR’S CERTIFICATE OF AUTHENTICATION

       

      This
        is
        one of the Notes designated above and referred to in the within-mentioned
        Indenture. 

       

      WELLS
        FARGO BANK, N.A.,

      not
        in
        its individual capacity but solely as Trust Administrator,

       

      By:
        ________________________________________

      Authorized
        Signatory 

       

      Dated:
        ___________________, 2006

      

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

      AAMES
        MORTGAGE INVESTMENT TRUST 2006-1

       

      This
        Note
        is one of a duly authorized issue of Notes of the Issuer, all issued under
        the
        Indenture, to which Indenture and all indentures supplemental thereto reference
        is hereby made for a statement of the respective rights and obligations
        thereunder of the Issuer, the Indenture Trustee and the Holders of the Notes.
        To
        the extent that any provision of this Note contradicts or is inconsistent
        with
        the provisions of the Indenture, the provisions of the Indenture shall control
        and supersede such contradictory or inconsistent provision herein. This Note
        is
        subject to all terms of the Indenture. 

       

      The
        Class
        A-1, Class A-2, Class A-3 and Class A-4 Notes (the “Senior Notes”) are, and will
        be, equally and ratably secured by the collateral pledged as security therefor
        as provided in the Indenture. The rights of the Holders of the Class M-1,
        Class
        M-2, Class M-3, Class M-4, Class M-5, Class M-6, Class M-7, Class M-8, Class
        M-9, Class M-10 and Class M-11 Notes (the “Subordinate Notes”) to receive
        payments or distribution of interest and principal are, and will be, subordinate
        to the rights of the Holders of the Senior Notes to receive payments of interest
        and principal, respectively, as provided in the Indenture.

       

      Payments
        to each Noteholder shall be made upon written request made to the Note Registrar
        and Paying Agent at least five Business Days prior to the related Record
        Date by
        the Holder of a Note having an initial Note Principal Amount of not less
        than
        $2,500,000, by wire transfer in immediately available funds to an account
        specified in writing by such Noteholder. The final payment in retirement
        of this
        Note shall be made only upon surrender of this Note to the Note Registrar
        and
        Paying Agent at the office thereof specified in the notice to Noteholders
        of
        such final payment mailed prior to the Payment Date on which the final payment
        is expected to be made to the Holder thereof.

       

      As
        provided in the Indenture and subject to certain limitations set forth therein,
        the transfer of this Note may be registered by the Note Registrar upon surrender
        of this Note for registration of transfer at the office or agency designated
        by
        the Issuer pursuant to the Indenture, duly endorsed by, or accompanied by
        a
        written instrument of transfer in form satisfactory to the Note Registrar
        duly
        executed by, the Holder hereof or such Holder’s attorney duly authorized in
        writing, with such signature guaranteed by an “eligible guarantor institution”
meeting the requirements of the Note Registrar, which requirements include
        membership or participation in the Securities Transfer Agent’s Medallion Program
        (“STAMP”) or such other “signature guarantee program” as may be determined by
        the Note Registrar in addition to, or in substitution for, STAMP, all in
        accordance with the Securities Exchange Act of 1934, as amended, and thereupon
        one or more new Notes of authorized denominations and in the same aggregate
        principal amount will be issued to the designated transferee or transferees.
        No
        service charge will be charged for any registration of transfer or exchange
        of
        this Note, but the transferor may be required to pay a sum sufficient to
        cover
        any tax or other governmental charge that may be imposed in connection with
        any
        such registration of transfer or exchange. 

       

      The
        Notes
        will be issued in minimum denominations of $25,000 in original principal
        amount
        and integral multiples of $1 in excess thereof, provided, that the initial
        sale
        of any Notes shall be in increments of no less than $100,000.

       

      The
        Notes
        are subject to optional redemption in accordance with the Indenture and the
        Transfer and Servicing Agreement. 

       

      Each
        Noteholder and Note Owner, by acceptance of a Note or, in the case of a Note
        Owner, a beneficial interest in a Note, covenants and agrees that no recourse
        may be taken, directly or indirectly, with respect to the obligations of
        the
        Issuer, the Owner Trustee or the Indenture Trustee on the Notes or under
        the
        Indenture or any certificate or other writing delivered in connection therewith,
        against (i) the Indenture Trustee, or the Owner Trustee in their respective
        individual capacities, (ii) any owner of a beneficial interest in the Issuer
        or
        (iii) any partner, owner, beneficiary, agent, officer, director or employee
        of
        the Indenture Trustee or the Owner Trustee in its individual capacity, any
        holder of a beneficial interest in the Issuer, the Owner Trustee or the
        Indenture Trustee or of any successor or assign of the Indenture Trustee
        or the
        Owner Trustee in its individual capacity, except as any such Person may have
        expressly agreed and except that any such partner, owner or beneficiary shall
        be
        fully liable, to the extent provided by applicable law, for any unpaid
        consideration for stock, unpaid capital contribution or failure to pay any
        installment or call owing to such entity.

       

      Each
        Noteholder and Note Owner, by acceptance of a Note or, in the case of a Note
        Owner, a beneficial interest in a Note, covenants and agrees by accepting
        the
        benefits of the Indenture that such Noteholder or Note Owner will not at
        any
        time institute against the Depositor or the Issuer, or join in any institution
        against the Depositor or the Issuer of, any bankruptcy, reorganization,
        arrangement, insolvency or liquidation proceedings under any United States
        federal or state bankruptcy or similar law in connection with any obligations
        relating to the Notes, the Indenture or the other Operative Agreements.

       

      Each
        Noteholder and Note Owner, by acceptance of a Note or, in the case of a Note
        Owner, a beneficial interest in a Note, consents to and agrees to be bound
        by
        the terms and conditions of the Indenture.

       

      The
        Issuer has entered into the Indenture and this Note is issued with the intention
        that, for federal, state and local income, single business and franchise
        tax
        purposes, the Notes will qualify as indebtedness of the Issuer secured by
        the
        Collateral. Each Noteholder, by acceptance of a Note (and each Note Owner
        by
        acceptance of a beneficial interest in a Note), agrees to treat the Notes
        for
        all federal, state and local income tax purposes as indebtedness (except
        that
        any Note held by a person that, for federal income tax purposes, owns or
        is
        treated as owning a 100% Percentage Interest of the Ownership Certificate
        shall
        not be treated as outstanding indebtedness). 

       

      Prior
        to
        the due presentment for registration of transfer of this Note, the Issuer,
        the
        Indenture Trustee, the Trust Administrator, the Note Registrar, the Paying
        Agent
        and any agent of the Issuer, the Indenture Trustee, the Trust Administrator,
        the
        Note Registrar or the Paying Agent may treat the Person in whose name this
        Note
        (as of the day of determination or as of such other date as may be specified
        in
        the Indenture) is registered as the owner hereof for all purposes, whether
        or
        not this Note be overdue, and none of the Issuer, the Indenture Trustee,
        the
        Note Registrar, the Paying Agent or any such agent shall be affected by notice
        to the contrary. 

       

      The
        Indenture permits, with certain exceptions as therein provided, the amendment
        thereof by supplemental indenture and the modification of the rights and
        obligations of the Issuer and the rights of the Holders of the Notes under
        the
        Indenture at any time by the Depositor, the Issuer and the Indenture Trustee
        with the consent of the Holders of not less than 66-2/3% of the Outstanding
        Balance of the Notes for the purpose of adding any provisions to or changing
        in
        any manner or eliminating any of the provisions of the Indenture or of modifying
        in any manner the rights of the Noteholders. Any such consent or waiver by
        the
        Holder of this Note (or any one or more Predecessor Notes) shall be conclusive
        and binding upon such Holder and upon all future Holders of this Note and
        of any
        Note issued upon the registration of transfer hereof or in exchange hereof
        or in
        lieu hereof whether or not notation of such consent or waiver is made upon
        this
        Note. The Indenture also permits the amendment thereof, in certain limited
        circumstances, or the waiver of certain terms and conditions set forth in
        the
        Indenture, without the consent of Holders of the Notes issued thereunder.
        

       

      The
        term
“Issuer” as used in this Note includes any successor to the Issuer under the
        Indenture. 

       

      The
        Notes
        are issuable only in registered form in denominations as provided in the
        Indenture, subject to certain limitations therein set forth. 

       

      THIS
        NOTE
        AND THE INDENTURE SHALL BE GOVERNED BY AND CONSTRUED IN ACCORDANCE WITH THE
        LAWS
        OF THE STATE OF NEW YORK, WITHOUT REFERENCE TO ITS CONFLICT OF LAW PROVISIONS
        (OTHER THAN SECTION 5-1401 OF THE GENERAL OBLIGATIONS LAW), AND THE OBLIGATIONS,
        RIGHTS AND REMEDIES OF THE PARTIES HEREUNDER SHALL BE DETERMINED IN ACCORDANCE
        WITH SUCH LAWS. 

       

      No
        reference herein to the Indenture and no provision of this Note or of the
        Indenture shall alter or impair the obligation of the Issuer, which is absolute
        and unconditional, to pay the principal of and interest on this Note at the
        times, place and rate, and in the coin or currency herein prescribed.

       

      Anything
        herein to the contrary notwithstanding, except as expressly provided in the
        Operative Agreements, none of the Issuer in its individual capacity, the
        Owner
        Trustee in its individual capacity, the Indenture Trustee in its individual
        capacity, any owner of a beneficial interest in the Issuer, the Trust
        Administrator in its individual capacity, the Note Registrar, the Paying
        Agent
        or any of their respective partners, beneficiaries, agents, officers, directors,
        employees or successors or assigns shall be personally liable for, nor shall
        recourse be had to any of them for, the payment of principal of or interest
        on
        this Note or performance of, or omission to perform, any of the covenants,
        obligations or indemnifications contained in the Indenture. The Holder of
        this
        Note by its acceptance hereof agrees that, except as expressly provided in
        the
        Operative Agreements, in the case of an Event of Default under the Indenture,
        the Holder shall have no claim against any of the foregoing for any deficiency,
        loss or claim therefrom; provided,
        however,
        that
        nothing contained herein shall be taken to prevent recourse to, and enforcement
        against, the assets of the Issuer for any and all liabilities, obligations
        and
        undertakings contained in the Indenture or in this Note. 

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

      ASSIGNMENT

       

      Social
        Security or taxpayer I.D. or other identifying number of assignee:
        ________________________

       

      FOR
        VALUE
        RECEIVED, the undersigned hereby sells, assigns and transfers unto:

       

      
        	 	 	 

      

      (name
        and
        address of assignee)

       

      the
        within Note and all rights thereunder, and hereby irrevocably constitutes
        and
        appoints ________________________, attorney, to transfer said Note on the
        books
        kept for registration thereof, with full power of substitution in the premises.
        

       

      Dated:__________________________*/

       

      Signature
        Guaranteed: 

       

      ________________________________*/
        

       

      

       

      */
        NOTICE:
        The signature to this assignment must correspond with the name of the registered
        owner as it appears on the face of the within Note in every particular, without
        alteration, enlargement or any change whatever. Such signature must be
        guaranteed by an “eligible guarantor institution” meeting the requirements of
        the Note Registrar, which requirements include membership or participation
        in
        STAMP or such other “signature guarantee program” as may be determined by the
        Note Registrar in addition to, or in substitution for, STAMP, all in accordance
        with the Securities Exchange Act of 1934, as amended.

       

      

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

      UNLESS
        THIS NOTE IS PRESENTED BY AN AUTHORIZED REPRESENTATIVE OF THE DEPOSITORY
        TRUST
        COMPANY, A NEW YORK CORPORATION (“DTC”), TO THE ISSUER OR ITS AGENT FOR
        REGISTRATION OF TRANSFER, EXCHANGE OR PAYMENT, AND ANY NOTE ISSUED IS REGISTERED
        IN THE NAME OF CEDE & CO. OR IN SUCH OTHER NAME AS IS REQUESTED BY AN
        AUTHORIZED REPRESENTATIVE OF DTC (AND ANY PAYMENT IS MADE TO CEDE & CO. OR
        TO SUCH OTHER ENTITY AS IS REQUESTED BY AN AUTHORIZED REPRESENTATIVE OF DTC),
        ANY TRANSFER, PLEDGE OR OTHER USE HEREOF FOR VALUE OR OTHERWISE BY OR TO
        ANY
        PERSON IS WRONGFUL INASMUCH AS THE REGISTERED OWNER HEREOF, CEDE & CO., HAS
        AN INTEREST HEREIN.

       

      THIS
        NOTE
        DOES NOT EVIDENCE AN OBLIGATION OF OR AN INTEREST IN, AND IS NOT GUARANTEED
        BY,
        THE ISSUER, THE DEPOSITOR, THE MASTER SERVICER, THE SELLER, THE SERVICER,
        THE
        INDENTURE TRUSTEE, THE OWNER TRUSTEE, THE TRUST ADMINISTRATOR, OR ANY AFFILIATE
        OF ANY OF THEM AND IS NOT INSURED OR GUARANTEED BY ANY GOVERNMENTAL AGENCY
        OR
        PRIVATE INSURER.

       

      THE
        PRINCIPAL OF THIS NOTE IS PAYABLE IN INSTALLMENTS AS SET FORTH HEREIN.
        ACCORDINGLY, THE OUTSTANDING PRINCIPAL AMOUNT OF THIS NOTE AT ANY TIME MAY
        BE
        LESS THAN THE AMOUNT SHOWN ON THE FACE HEREOF.

       

      THIS
        NOTE
        IS SUBORDINATE IN RIGHT OF PAYMENT AS PROVIDED IN THE INDENTURE REFERRED
        TO
        HEREIN.

       

      EACH
        PURCHASER OF THIS NOTE WILL BE DEEMED TO HAVE MADE THE REPRESENTATIONS AND
        AGREEMENTS SET FORTH IN SECTION 2.03 OF THE INDENTURE. ANY TRANSFER IN VIOLATION
        OF THE FOREGOING WILL BE OF NO FORCE AND EFFECT, WILL BE VOID AB
        INITIO,
        AND
        WILL NOT OPERATE TO TRANSFER ANY RIGHTS TO THE TRANSFEREE, NOTWITHSTANDING
        ANY
        INSTRUCTIONS TO THE CONTRARY TO THE ISSUER, THE INDENTURE TRUSTEE OR ANY
        INTERMEDIARY.

       

      THIS
        NOTE
        MAY NOT BE ACQUIRED BY A TRANSFEREE FOR, OR ON BEHALF OF AN EMPLOYEE BENEFIT
        PLAN OR OTHER RETIREMENT ARRANGEMENT THAT IS SUBJECT TO THE EMPLOYEE RETIREMENT
        INCOME SECURITY ACT OF 1974, AS AMENDED (“ERISA”) OR SECTION 4975 OF THE
        INTERNAL REVENUE CODE OF 1986, AS AMENDED (THE “CODE”) OR TO ANY SUBSTANTIALLY
        SIMILAR LAW (“SIMILAR LAW”) OR ANY ENTITY DEEMED TO HOLD THE PLAN ASSETS OF THE
        FOREGOING (“BENEFIT PLAN”), UNLESS THE TRANSFEREE REPRESENTS AND WARRANTS THAT
        THE ACQUISITION AND HOLDING OF THIS NOTE: (X) WILL NOT RESULT IN A NON-EXEMPT
        PROHIBITED TRANSACTION UNDER SECTION 406 OF ERISA OR SECTION 4975 OF THE
        CODE
        WHICH IS NOT COVERED BY PROHIBITED TRANSACTION CLASS EXEMPTION (“PTCE”) 84-14,
        PTCE 90-1, PTCE 91-38, PTCE 95-60, PTCE 96-23 OR SOME OTHER APPLICABLE EXEMPTION
        AND (Y) WILL NOT RESULT IN A NON-EXEMPT VIOLATION OF ANY SUBSTANTIALLY SIMILAR
        APPLICABLE LAW. EACH INVESTOR IN THIS NOTE WILL BE DEEMED TO MAKE THE FOREGOING
        REPRESENTATIONS AND WILL FURTHER BE DEEMED TO REPRESENT, WARRANT AND COVENANT
        THAT IT WILL NOT SELL, PLEDGE OR OTHERWISE TRANSFER THIS NOTE IN VIOLATION
        OF
        THE FOREGOING.

       

      

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

      AAMES
        MORTGAGE INVESTMENT TRUST 2006-1

       

      

       

      CLASS
        M-6
        NOTES

       

      

       

      
        	
                Aggregate
                  Class Principal Amount of

              	
                Class
                  Principal Amount

              
	
                the
                  Class M-6 Notes: $12,231,000.00

              	
                of
                  this Note: $12,231,000.00

                 

              
	
                Interest
                  Rate: Adjustable

              	
                Cut-off
                  Date: April 1, 2006

                 

              
	
                Number:
                  1

              	
                CUSIP
                  No.: 00252G AK 5

              

      

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

      AAMES
        MORTGAGE INVESTMENT TRUST 2006-1, a statutory trust organized and existing
        under
        the laws of the State of Delaware (herein referred to as the “Issuer”), for
        value received, hereby promises to pay to CEDE & CO., or registered assigns,
        the principal sum of TWELVE MILLION TWO HUNDRED THIRTY ONE THOUSAND DOLLARS
        AND
        NO/100 ($12,231,000.00)
        payable on each Payment Date in an amount equal to the result obtained by
        multiplying (A) the Percentage Interest evidenced by this Note (obtained
        by
        dividing the initial Class Principal Amount of this Note by the initial Class
        Principal Amount of all Class M-6 Notes, both as specified above) and (B)
        the
        amount payable on such Payment Date in respect of principal of the Class
        M-6
        Notes pursuant to the Indenture dated as of April 1, 2006 (as amended and
        supplemented from time to time, the “Indenture”), among the Issuer, Wells Fargo
        Bank, N.A., as Trust Administrator (the “Trust Administrator”) and Deutsche Bank
        National Trust Company, as Indenture Trustee (the “Indenture Trustee”);
provided,
        however,
        that
        the entire unpaid principal amount of this Note shall be due and payable
        on the
        Payment Date occurring in April 2036 (the “Maturity Date”) or as otherwise
        specified in the Indenture. Capitalized terms used but not defined herein
        have
        the meanings assigned to such terms in the Indenture or the Transfer and
        Servicing Agreement dated as of April 1, 2006 (as amended and supplemented
        from
        time to time, the “Transfer and Servicing Agreement”), by and among the Issuer,
        Financial Asset Securities Corp., as depositor (the “Depositor”), Wells Fargo
        Bank, N.A., as trust administrator (in such capacity, the “Trust Administrator”)
        and as master servicer (in such capacity, the “Master Servicer”), Aames Funding
        Corporation, as servicer, Aames Investment Corporation, as seller, and the
        Indenture Trustee, which agreements also contain rules as to construction
        that
        shall be applicable herein.

       

      The
        Issuer will pay interest on this Note at a per annum rate equal to the
        applicable Interest Rate, on the principal amount of this Note outstanding
        on
        the immediately preceding Payment Date (after giving effect to all payments
        of
        principal made on such preceding Payment Date) on each Payment Date until
        the
        principal of this Note is paid or made available for payment in
        full.

       

      Payments
        on this Note will be made on the 25th day of each month or, if such a day
        is not
        a Business Day, then on the next succeeding Business Day, commencing in May
        2006
        (each, a “Payment Date”), to the Person in whose name this Note is registered at
        the close of business on the Business Day immediately preceding such Payment
        Date (the “Record Date”), in an amount equal to the product of the Percentage
        Interest evidenced by this Note and the amount, if any, required to be
        distributed to all the Notes of the Class represented by this Note. All sums
        distributable on this Note are payable in 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. Such principal of and interest on this Note
        shall
        be paid in the manner specified on the reverse hereof.

       

      All
        payments made by the Issuer with respect to this Note shall be applied as
        provided in the Transfer and Servicing Agreement.

       

      Reference
        is made to the further provisions of this Note set forth on the reverse hereof,
        which shall have the same effect as though fully set forth on the face of
        this
        Note. 

       

      Unless
        the certificate of authentication hereon has been executed by the Trust
        Administrator whose name appears below by manual signature, this Note shall
        not
        be entitled to any benefit under the Indenture referred to on the reverse
        hereof, or be valid or obligatory for any purpose. 

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

      IN
        WITNESS WHEREOF, the Issuer has caused this instrument to be signed, manually
        or
        in facsimile, by its Authorized Officer, as of the date set forth below.
        

       

      AAMES
        MORTGAGE INVESTMENT TRUST 2006-1

       

      By: WILMINGTON
        TRUST COMPANY, 

      not
        in
        its individual capacity but solely as Owner Trustee 

      under
        the
        Trust Agreement

       

      By:
        ________________________________________

      Authorized
        Signatory 

       

      Dated:
        ____________________, 2006

       

      TRUST
        ADMINISTRATOR’S CERTIFICATE OF AUTHENTICATION

       

      This
        is
        one of the Notes designated above and referred to in the within-mentioned
        Indenture. 

       

      WELLS
        FARGO BANK, N.A.,

      not
        in
        its individual capacity but solely as Trust Administrator,

       

      By:
        ________________________________________

      Authorized
        Signatory 

       

      Dated:
        ___________________, 2006

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

      AAMES
        MORTGAGE INVESTMENT TRUST 2006-1

       

      This
        Note
        is one of a duly authorized issue of Notes of the Issuer, all issued under
        the
        Indenture, to which Indenture and all indentures supplemental thereto reference
        is hereby made for a statement of the respective rights and obligations
        thereunder of the Issuer, the Indenture Trustee and the Holders of the Notes.
        To
        the extent that any provision of this Note contradicts or is inconsistent
        with
        the provisions of the Indenture, the provisions of the Indenture shall control
        and supersede such contradictory or inconsistent provision herein. This Note
        is
        subject to all terms of the Indenture. 

       

      The
        Class
        A-1, Class A-2, Class A-3 and Class A-4 Notes (the “Senior Notes”) are, and will
        be, equally and ratably secured by the collateral pledged as security therefor
        as provided in the Indenture. The rights of the Holders of the Class M-1,
        Class
        M-2, Class M-3, Class M-4, Class M-5, Class M-6, Class M-7, Class M-8, Class
        M-9, Class M-10 and Class M-11 Notes (the “Subordinate Notes”) to receive
        payments or distribution of interest and principal are, and will be, subordinate
        to the rights of the Holders of the Senior Notes to receive payments of interest
        and principal, respectively, as provided in the Indenture.

       

      Payments
        to each Noteholder shall be made upon written request made to the Note Registrar
        and Paying Agent at least five Business Days prior to the related Record
        Date by
        the Holder of a Note having an initial Note Principal Amount of not less
        than
        $2,500,000, by wire transfer in immediately available funds to an account
        specified in writing by such Noteholder. The final payment in retirement
        of this
        Note shall be made only upon surrender of this Note to the Note Registrar
        and
        Paying Agent at the office thereof specified in the notice to Noteholders
        of
        such final payment mailed prior to the Payment Date on which the final payment
        is expected to be made to the Holder thereof.

       

      As
        provided in the Indenture and subject to certain limitations set forth therein,
        the transfer of this Note may be registered by the Note Registrar upon surrender
        of this Note for registration of transfer at the office or agency designated
        by
        the Issuer pursuant to the Indenture, duly endorsed by, or accompanied by
        a
        written instrument of transfer in form satisfactory to the Note Registrar
        duly
        executed by, the Holder hereof or such Holder’s attorney duly authorized in
        writing, with such signature guaranteed by an “eligible guarantor institution”
meeting the requirements of the Note Registrar, which requirements include
        membership or participation in the Securities Transfer Agent’s Medallion Program
        (“STAMP”) or such other “signature guarantee program” as may be determined by
        the Note Registrar in addition to, or in substitution for, STAMP, all in
        accordance with the Securities Exchange Act of 1934, as amended, and thereupon
        one or more new Notes of authorized denominations and in the same aggregate
        principal amount will be issued to the designated transferee or transferees.
        No
        service charge will be charged for any registration of transfer or exchange
        of
        this Note, but the transferor may be required to pay a sum sufficient to
        cover
        any tax or other governmental charge that may be imposed in connection with
        any
        such registration of transfer or exchange. 

       

      The
        Notes
        will be issued in minimum denominations of $25,000 in original principal
        amount
        and integral multiples of $1 in excess thereof, provided, that the initial
        sale
        of any Notes shall be in increments of no less than $100,000.

       

      The
        Notes
        are subject to optional redemption in accordance with the Indenture and the
        Transfer and Servicing Agreement. 

       

      Each
        Noteholder and Note Owner, by acceptance of a Note or, in the case of a Note
        Owner, a beneficial interest in a Note, covenants and agrees that no recourse
        may be taken, directly or indirectly, with respect to the obligations of
        the
        Issuer, the Owner Trustee or the Indenture Trustee on the Notes or under
        the
        Indenture or any certificate or other writing delivered in connection therewith,
        against (i) the Indenture Trustee, or the Owner Trustee in their respective
        individual capacities, (ii) any owner of a beneficial interest in the Issuer
        or
        (iii) any partner, owner, beneficiary, agent, officer, director or employee
        of
        the Indenture Trustee or the Owner Trustee in its individual capacity, any
        holder of a beneficial interest in the Issuer, the Owner Trustee or the
        Indenture Trustee or of any successor or assign of the Indenture Trustee
        or the
        Owner Trustee in its individual capacity, except as any such Person may have
        expressly agreed and except that any such partner, owner or beneficiary shall
        be
        fully liable, to the extent provided by applicable law, for any unpaid
        consideration for stock, unpaid capital contribution or failure to pay any
        installment or call owing to such entity.

       

      Each
        Noteholder and Note Owner, by acceptance of a Note or, in the case of a Note
        Owner, a beneficial interest in a Note, covenants and agrees by accepting
        the
        benefits of the Indenture that such Noteholder or Note Owner will not at
        any
        time institute against the Depositor or the Issuer, or join in any institution
        against the Depositor or the Issuer of, any bankruptcy, reorganization,
        arrangement, insolvency or liquidation proceedings under any United States
        federal or state bankruptcy or similar law in connection with any obligations
        relating to the Notes, the Indenture or the other Operative Agreements.

       

      Each
        Noteholder and Note Owner, by acceptance of a Note or, in the case of a Note
        Owner, a beneficial interest in a Note, consents to and agrees to be bound
        by
        the terms and conditions of the Indenture.

       

      The
        Issuer has entered into the Indenture and this Note is issued with the intention
        that, for federal, state and local income, single business and franchise
        tax
        purposes, the Notes will qualify as indebtedness of the Issuer secured by
        the
        Collateral. Each Noteholder, by acceptance of a Note (and each Note Owner
        by
        acceptance of a beneficial interest in a Note), agrees to treat the Notes
        for
        all federal, state and local income tax purposes as indebtedness (except
        that
        any Note held by a person that, for federal income tax purposes, owns or
        is
        treated as owning a 100% Percentage Interest of the Ownership Certificate
        shall
        not be treated as outstanding indebtedness). 

       

      Prior
        to
        the due presentment for registration of transfer of this Note, the Issuer,
        the
        Indenture Trustee, the Trust Administrator, the Note Registrar, the Paying
        Agent
        and any agent of the Issuer, the Indenture Trustee, the Trust Administrator,
        the
        Note Registrar or the Paying Agent may treat the Person in whose name this
        Note
        (as of the day of determination or as of such other date as may be specified
        in
        the Indenture) is registered as the owner hereof for all purposes, whether
        or
        not this Note be overdue, and none of the Issuer, the Indenture Trustee,
        the
        Note Registrar, the Paying Agent or any such agent shall be affected by notice
        to the contrary. 

       

      The
        Indenture permits, with certain exceptions as therein provided, the amendment
        thereof by supplemental indenture and the modification of the rights and
        obligations of the Issuer and the rights of the Holders of the Notes under
        the
        Indenture at any time by the Depositor, the Issuer and the Indenture Trustee
        with the consent of the Holders of not less than 66-2/3% of the Outstanding
        Balance of the Notes for the purpose of adding any provisions to or changing
        in
        any manner or eliminating any of the provisions of the Indenture or of modifying
        in any manner the rights of the Noteholders. Any such consent or waiver by
        the
        Holder of this Note (or any one or more Predecessor Notes) shall be conclusive
        and binding upon such Holder and upon all future Holders of this Note and
        of any
        Note issued upon the registration of transfer hereof or in exchange hereof
        or in
        lieu hereof whether or not notation of such consent or waiver is made upon
        this
        Note. The Indenture also permits the amendment thereof, in certain limited
        circumstances, or the waiver of certain terms and conditions set forth in
        the
        Indenture, without the consent of Holders of the Notes issued thereunder.
        

       

      The
        term
“Issuer” as used in this Note includes any successor to the Issuer under the
        Indenture. 

       

      The
        Notes
        are issuable only in registered form in denominations as provided in the
        Indenture, subject to certain limitations therein set forth. 

       

      THIS
        NOTE
        AND THE INDENTURE SHALL BE GOVERNED BY AND CONSTRUED IN ACCORDANCE WITH THE
        LAWS
        OF THE STATE OF NEW YORK, WITHOUT REFERENCE TO ITS CONFLICT OF LAW PROVISIONS
        (OTHER THAN SECTION 5-1401 OF THE GENERAL OBLIGATIONS LAW), AND THE OBLIGATIONS,
        RIGHTS AND REMEDIES OF THE PARTIES HEREUNDER SHALL BE DETERMINED IN ACCORDANCE
        WITH SUCH LAWS. 

       

      No
        reference herein to the Indenture and no provision of this Note or of the
        Indenture shall alter or impair the obligation of the Issuer, which is absolute
        and unconditional, to pay the principal of and interest on this Note at the
        times, place and rate, and in the coin or currency herein prescribed.

       

      Anything
        herein to the contrary notwithstanding, except as expressly provided in the
        Operative Agreements, none of the Issuer in its individual capacity, the
        Owner
        Trustee in its individual capacity, the Indenture Trustee in its individual
        capacity, any owner of a beneficial interest in the Issuer, the Trust
        Administrator in its individual capacity, the Note Registrar, the Paying
        Agent
        or any of their respective partners, beneficiaries, agents, officers, directors,
        employees or successors or assigns shall be personally liable for, nor shall
        recourse be had to any of them for, the payment of principal of or interest
        on
        this Note or performance of, or omission to perform, any of the covenants,
        obligations or indemnifications contained in the Indenture. The Holder of
        this
        Note by its acceptance hereof agrees that, except as expressly provided in
        the
        Operative Agreements, in the case of an Event of Default under the Indenture,
        the Holder shall have no claim against any of the foregoing for any deficiency,
        loss or claim therefrom; provided,
        however,
        that
        nothing contained herein shall be taken to prevent recourse to, and enforcement
        against, the assets of the Issuer for any and all liabilities, obligations
        and
        undertakings contained in the Indenture or in this Note. 

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

      ASSIGNMENT

       

      Social
        Security or taxpayer I.D. or other identifying number of assignee:
        ________________________

       

      FOR
        VALUE
        RECEIVED, the undersigned hereby sells, assigns and transfers unto:

       

      
        	 	 	 

      

      (name
        and
        address of assignee)

       

      the
        within Note and all rights thereunder, and hereby irrevocably constitutes
        and
        appoints ________________________, attorney, to transfer said Note on the
        books
        kept for registration thereof, with full power of substitution in the premises.
        

       

      Dated:__________________________*/

       

      Signature
        Guaranteed: 

       

      ________________________________*/
        

       

      

       

      */
        NOTICE:
        The signature to this assignment must correspond with the name of the registered
        owner as it appears on the face of the within Note in every particular, without
        alteration, enlargement or any change whatever. Such signature must be
        guaranteed by an “eligible guarantor institution” meeting the requirements of
        the Note Registrar, which requirements include membership or participation
        in
        STAMP or such other “signature guarantee program” as may be determined by the
        Note Registrar in addition to, or in substitution for, STAMP, all in accordance
        with the Securities Exchange Act of 1934, as amended.

       

      

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

      UNLESS
        THIS NOTE IS PRESENTED BY AN AUTHORIZED REPRESENTATIVE OF THE DEPOSITORY
        TRUST
        COMPANY, A NEW YORK CORPORATION (“DTC”), TO THE ISSUER OR ITS AGENT FOR
        REGISTRATION OF TRANSFER, EXCHANGE OR PAYMENT, AND ANY NOTE ISSUED IS REGISTERED
        IN THE NAME OF CEDE & CO. OR IN SUCH OTHER NAME AS IS REQUESTED BY AN
        AUTHORIZED REPRESENTATIVE OF DTC (AND ANY PAYMENT IS MADE TO CEDE & CO. OR
        TO SUCH OTHER ENTITY AS IS REQUESTED BY AN AUTHORIZED REPRESENTATIVE OF DTC),
        ANY TRANSFER, PLEDGE OR OTHER USE HEREOF FOR VALUE OR OTHERWISE BY OR TO
        ANY
        PERSON IS WRONGFUL INASMUCH AS THE REGISTERED OWNER HEREOF, CEDE & CO., HAS
        AN INTEREST HEREIN.

       

      THIS
        NOTE
        DOES NOT EVIDENCE AN OBLIGATION OF OR AN INTEREST IN, AND IS NOT GUARANTEED
        BY,
        THE ISSUER, THE DEPOSITOR, THE MASTER SERVICER, THE SELLER, THE SERVICER,
        THE
        INDENTURE TRUSTEE, THE OWNER TRUSTEE, THE TRUST ADMINISTRATOR, OR ANY AFFILIATE
        OF ANY OF THEM AND IS NOT INSURED OR GUARANTEED BY ANY GOVERNMENTAL AGENCY
        OR
        PRIVATE INSURER.

       

      THE
        PRINCIPAL OF THIS NOTE IS PAYABLE IN INSTALLMENTS AS SET FORTH HEREIN.
        ACCORDINGLY, THE OUTSTANDING PRINCIPAL AMOUNT OF THIS NOTE AT ANY TIME MAY
        BE
        LESS THAN THE AMOUNT SHOWN ON THE FACE HEREOF.

       

      THIS
        NOTE
        IS SUBORDINATE IN RIGHT OF PAYMENT AS PROVIDED IN THE INDENTURE REFERRED
        TO
        HEREIN.

       

      EACH
        PURCHASER OF THIS NOTE WILL BE DEEMED TO HAVE MADE THE REPRESENTATIONS AND
        AGREEMENTS SET FORTH IN SECTION 2.03 OF THE INDENTURE. ANY TRANSFER IN VIOLATION
        OF THE FOREGOING WILL BE OF NO FORCE AND EFFECT, WILL BE VOID AB
        INITIO,
        AND
        WILL NOT OPERATE TO TRANSFER ANY RIGHTS TO THE TRANSFEREE, NOTWITHSTANDING
        ANY
        INSTRUCTIONS TO THE CONTRARY TO THE ISSUER, THE INDENTURE TRUSTEE OR ANY
        INTERMEDIARY.

       

      THIS
        NOTE
        MAY NOT BE ACQUIRED BY A TRANSFEREE FOR, OR ON BEHALF OF AN EMPLOYEE BENEFIT
        PLAN OR OTHER RETIREMENT ARRANGEMENT THAT IS SUBJECT TO THE EMPLOYEE RETIREMENT
        INCOME SECURITY ACT OF 1974, AS AMENDED (“ERISA”) OR SECTION 4975 OF THE
        INTERNAL REVENUE CODE OF 1986, AS AMENDED (THE “CODE”) OR TO ANY SUBSTANTIALLY
        SIMILAR LAW (“SIMILAR LAW”) OR ANY ENTITY DEEMED TO HOLD THE PLAN ASSETS OF THE
        FOREGOING (“BENEFIT PLAN”), UNLESS THE TRANSFEREE REPRESENTS AND WARRANTS THAT
        THE ACQUISITION AND HOLDING OF THIS NOTE: (X) WILL NOT RESULT IN A NON-EXEMPT
        PROHIBITED TRANSACTION UNDER SECTION 406 OF ERISA OR SECTION 4975 OF THE
        CODE
        WHICH IS NOT COVERED BY PROHIBITED TRANSACTION CLASS EXEMPTION (“PTCE”) 84-14,
        PTCE 90-1, PTCE 91-38, PTCE 95-60, PTCE 96-23 OR SOME OTHER APPLICABLE EXEMPTION
        AND (Y) WILL NOT RESULT IN A NON-EXEMPT VIOLATION OF ANY SUBSTANTIALLY SIMILAR
        APPLICABLE LAW. EACH INVESTOR IN THIS NOTE WILL BE DEEMED TO MAKE THE FOREGOING
        REPRESENTATIONS AND WILL FURTHER BE DEEMED TO REPRESENT, WARRANT AND COVENANT
        THAT IT WILL NOT SELL, PLEDGE OR OTHERWISE TRANSFER THIS NOTE IN VIOLATION
        OF
        THE FOREGOING.

       

      

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

      AAMES
        MORTGAGE INVESTMENT TRUST 2006-1

       

      

       

      CLASS
        M-7
        NOTES

       

      

       

      
        	
                Aggregate
                  Class Principal Amount of

              	
                Class
                  Principal Amount

              
	
                the
                  Class M-7 Notes: $15,594,000.00

              	
                of
                  this Note: $15,594,000.00

                 

              
	
                Interest
                  Rate: Adjustable

              	
                Cut-off
                  Date: April 1, 2006

                 

              
	
                Number:
                  1

              	
                CUSIP
                  No.: 00252G AL 3

              

      

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

      AAMES
        MORTGAGE INVESTMENT TRUST 2006-1, a statutory trust organized and existing
        under
        the laws of the State of Delaware (herein referred to as the “Issuer”), for
        value received, hereby promises to pay to CEDE & CO., or registered assigns,
        the principal sum of FIFTEEN MILLION FIVE HUNDRED AND NINETY FOUR THOUSAND
        DOLLARS AND NO/100 ($15,594,000.00)
        payable on each Payment Date in an amount equal to the result obtained by
        multiplying (A) the Percentage Interest evidenced by this Note (obtained
        by
        dividing the initial Class Principal Amount of this Note by the initial Class
        Principal Amount of all Class M-7 Notes, both as specified above) and (B)
        the
        amount payable on such Payment Date in respect of principal of the Class
        M-7
        Notes pursuant to the Indenture dated as of April 1, 2006 (as amended and
        supplemented from time to time, the “Indenture”), among the Issuer, Wells Fargo
        Bank, N.A., as Trust Administrator (the “Trust Administrator”) and Deutsche Bank
        National Trust Company, as Indenture Trustee (the “Indenture Trustee”);
provided,
        however,
        that
        the entire unpaid principal amount of this Note shall be due and payable
        on the
        Payment Date occurring in April 2036 (the “Maturity Date”) or as otherwise
        specified in the Indenture. Capitalized terms used but not defined herein
        have
        the meanings assigned to such terms in the Indenture or the Transfer and
        Servicing Agreement dated as of April 1, 2006 (as amended and supplemented
        from
        time to time, the “Transfer and Servicing Agreement”), by and among the Issuer,
        Financial Asset Securities Corp., as depositor (the “Depositor”), Wells Fargo
        Bank, N.A., as trust administrator (in such capacity, the “Trust Administrator”)
        and as master servicer (in such capacity, the “Master Servicer”), Aames Funding
        Corporation, as servicer, Aames Investment Corporation, as seller, and the
        Indenture Trustee, which agreements also contain rules as to construction
        that
        shall be applicable herein.

       

      The
        Issuer will pay interest on this Note at a per annum rate equal to the
        applicable Interest Rate, on the principal amount of this Note outstanding
        on
        the immediately preceding Payment Date (after giving effect to all payments
        of
        principal made on such preceding Payment Date) on each Payment Date until
        the
        principal of this Note is paid or made available for payment in
        full.

       

      Payments
        on this Note will be made on the 25th day of each month or, if such a day
        is not
        a Business Day, then on the next succeeding Business Day, commencing in May
        2006
        (each, a “Payment Date”), to the Person in whose name this Note is registered at
        the close of business on the Business Day immediately preceding such Payment
        Date (the “Record Date”), in an amount equal to the product of the Percentage
        Interest evidenced by this Note and the amount, if any, required to be
        distributed to all the Notes of the Class represented by this Note. All sums
        distributable on this Note are payable in 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. Such principal of and interest on this Note
        shall
        be paid in the manner specified on the reverse hereof.

       

      All
        payments made by the Issuer with respect to this Note shall be applied as
        provided in the Transfer and Servicing Agreement.

       

      Reference
        is made to the further provisions of this Note set forth on the reverse hereof,
        which shall have the same effect as though fully set forth on the face of
        this
        Note. 

       

      Unless
        the certificate of authentication hereon has been executed by the Trust
        Administrator whose name appears below by manual signature, this Note shall
        not
        be entitled to any benefit under the Indenture referred to on the reverse
        hereof, or be valid or obligatory for any purpose. 

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

      IN
        WITNESS WHEREOF, the Issuer has caused this instrument to be signed, manually
        or
        in facsimile, by its Authorized Officer, as of the date set forth below.
        

       

      AAMES
        MORTGAGE INVESTMENT TRUST 2006-1

       

      By: WILMINGTON
        TRUST COMPANY, 

      not
        in
        its individual capacity but solely as Owner Trustee 

      under
        the
        Trust Agreement

       

      By:
        ________________________________________

      Authorized
        Signatory 

       

      Dated:
        ____________________, 2006

       

      TRUST
        ADMINISTRATOR’S CERTIFICATE OF AUTHENTICATION

       

      This
        is
        one of the Notes designated above and referred to in the within-mentioned
        Indenture. 

       

      WELLS
        FARGO BANK, N.A.,

      not
        in
        its individual capacity but solely as Trust Administrator,

       

      By:
        ________________________________________

      Authorized
        Signatory 

       

      Dated:
        ___________________, 2006

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

      AAMES
        MORTGAGE INVESTMENT TRUST 2006-1

       

      This
        Note
        is one of a duly authorized issue of Notes of the Issuer, all issued under
        the
        Indenture, to which Indenture and all indentures supplemental thereto reference
        is hereby made for a statement of the respective rights and obligations
        thereunder of the Issuer, the Indenture Trustee and the Holders of the Notes.
        To
        the extent that any provision of this Note contradicts or is inconsistent
        with
        the provisions of the Indenture, the provisions of the Indenture shall control
        and supersede such contradictory or inconsistent provision herein. This Note
        is
        subject to all terms of the Indenture. 

       

      The
        Class
        A-1, Class A-2, Class A-3 and Class A-4 Notes (the “Senior Notes”) are, and will
        be, equally and ratably secured by the collateral pledged as security therefor
        as provided in the Indenture. The rights of the Holders of the Class M-1,
        Class
        M-2, Class M-3, Class M-4, Class M-5, Class M-6, Class M-7, Class M-8, Class
        M-9, Class M-10 and Class M-11 Notes (the “Subordinate Notes”) to receive
        payments or distribution of interest and principal are, and will be, subordinate
        to the rights of the Holders of the Senior Notes to receive payments of interest
        and principal, respectively, as provided in the Indenture.

       

      Payments
        to each Noteholder shall be made upon written request made to the Note Registrar
        and Paying Agent at least five Business Days prior to the related Record
        Date by
        the Holder of a Note having an initial Note Principal Amount of not less
        than
        $2,500,000, by wire transfer in immediately available funds to an account
        specified in writing by such Noteholder. The final payment in retirement
        of this
        Note shall be made only upon surrender of this Note to the Note Registrar
        and
        Paying Agent at the office thereof specified in the notice to Noteholders
        of
        such final payment mailed prior to the Payment Date on which the final payment
        is expected to be made to the Holder thereof.

       

      As
        provided in the Indenture and subject to certain limitations set forth therein,
        the transfer of this Note may be registered by the Note Registrar upon surrender
        of this Note for registration of transfer at the office or agency designated
        by
        the Issuer pursuant to the Indenture, duly endorsed by, or accompanied by
        a
        written instrument of transfer in form satisfactory to the Note Registrar
        duly
        executed by, the Holder hereof or such Holder’s attorney duly authorized in
        writing, with such signature guaranteed by an “eligible guarantor institution”
meeting the requirements of the Note Registrar, which requirements include
        membership or participation in the Securities Transfer Agent’s Medallion Program
        (“STAMP”) or such other “signature guarantee program” as may be determined by
        the Note Registrar in addition to, or in substitution for, STAMP, all in
        accordance with the Securities Exchange Act of 1934, as amended, and thereupon
        one or more new Notes of authorized denominations and in the same aggregate
        principal amount will be issued to the designated transferee or transferees.
        No
        service charge will be charged for any registration of transfer or exchange
        of
        this Note, but the transferor may be required to pay a sum sufficient to
        cover
        any tax or other governmental charge that may be imposed in connection with
        any
        such registration of transfer or exchange. 

       

      The
        Notes
        will be issued in minimum denominations of $25,000 in original principal
        amount
        and integral multiples of $1 in excess thereof, provided, that the initial
        sale
        of any Notes shall be in increments of no less than $100,000.

       

      The
        Notes
        are subject to optional redemption in accordance with the Indenture and the
        Transfer and Servicing Agreement. 

       

      Each
        Noteholder and Note Owner, by acceptance of a Note or, in the case of a Note
        Owner, a beneficial interest in a Note, covenants and agrees that no recourse
        may be taken, directly or indirectly, with respect to the obligations of
        the
        Issuer, the Owner Trustee or the Indenture Trustee on the Notes or under
        the
        Indenture or any certificate or other writing delivered in connection therewith,
        against (i) the Indenture Trustee, or the Owner Trustee in their respective
        individual capacities, (ii) any owner of a beneficial interest in the Issuer
        or
        (iii) any partner, owner, beneficiary, agent, officer, director or employee
        of
        the Indenture Trustee or the Owner Trustee in its individual capacity, any
        holder of a beneficial interest in the Issuer, the Owner Trustee or the
        Indenture Trustee or of any successor or assign of the Indenture Trustee
        or the
        Owner Trustee in its individual capacity, except as any such Person may have
        expressly agreed and except that any such partner, owner or beneficiary shall
        be
        fully liable, to the extent provided by applicable law, for any unpaid
        consideration for stock, unpaid capital contribution or failure to pay any
        installment or call owing to such entity.

       

      Each
        Noteholder and Note Owner, by acceptance of a Note or, in the case of a Note
        Owner, a beneficial interest in a Note, covenants and agrees by accepting
        the
        benefits of the Indenture that such Noteholder or Note Owner will not at
        any
        time institute against the Depositor or the Issuer, or join in any institution
        against the Depositor or the Issuer of, any bankruptcy, reorganization,
        arrangement, insolvency or liquidation proceedings under any United States
        federal or state bankruptcy or similar law in connection with any obligations
        relating to the Notes, the Indenture or the other Operative Agreements.

       

      Each
        Noteholder and Note Owner, by acceptance of a Note or, in the case of a Note
        Owner, a beneficial interest in a Note, consents to and agrees to be bound
        by
        the terms and conditions of the Indenture.

       

      The
        Issuer has entered into the Indenture and this Note is issued with the intention
        that, for federal, state and local income, single business and franchise
        tax
        purposes, the Notes will qualify as indebtedness of the Issuer secured by
        the
        Collateral. Each Noteholder, by acceptance of a Note (and each Note Owner
        by
        acceptance of a beneficial interest in a Note), agrees to treat the Notes
        for
        all federal, state and local income tax purposes as indebtedness (except
        that
        any Note held by a person that, for federal income tax purposes, owns or
        is
        treated as owning a 100% Percentage Interest of the Ownership Certificate
        shall
        not be treated as outstanding indebtedness). 

       

      Prior
        to
        the due presentment for registration of transfer of this Note, the Issuer,
        the
        Indenture Trustee, the Trust Administrator, the Note Registrar, the Paying
        Agent
        and any agent of the Issuer, the Indenture Trustee, the Trust Administrator,
        the
        Note Registrar or the Paying Agent may treat the Person in whose name this
        Note
        (as of the day of determination or as of such other date as may be specified
        in
        the Indenture) is registered as the owner hereof for all purposes, whether
        or
        not this Note be overdue, and none of the Issuer, the Indenture Trustee,
        the
        Note Registrar, the Paying Agent or any such agent shall be affected by notice
        to the contrary. 

       

      The
        Indenture permits, with certain exceptions as therein provided, the amendment
        thereof by supplemental indenture and the modification of the rights and
        obligations of the Issuer and the rights of the Holders of the Notes under
        the
        Indenture at any time by the Depositor, the Issuer and the Indenture Trustee
        with the consent of the Holders of not less than 66-2/3% of the Outstanding
        Balance of the Notes for the purpose of adding any provisions to or changing
        in
        any manner or eliminating any of the provisions of the Indenture or of modifying
        in any manner the rights of the Noteholders. Any such consent or waiver by
        the
        Holder of this Note (or any one or more Predecessor Notes) shall be conclusive
        and binding upon such Holder and upon all future Holders of this Note and
        of any
        Note issued upon the registration of transfer hereof or in exchange hereof
        or in
        lieu hereof whether or not notation of such consent or waiver is made upon
        this
        Note. The Indenture also permits the amendment thereof, in certain limited
        circumstances, or the waiver of certain terms and conditions set forth in
        the
        Indenture, without the consent of Holders of the Notes issued thereunder.
        

       

      The
        term
“Issuer” as used in this Note includes any successor to the Issuer under the
        Indenture. 

       

      The
        Notes
        are issuable only in registered form in denominations as provided in the
        Indenture, subject to certain limitations therein set forth. 

       

      THIS
        NOTE
        AND THE INDENTURE SHALL BE GOVERNED BY AND CONSTRUED IN ACCORDANCE WITH THE
        LAWS
        OF THE STATE OF NEW YORK, WITHOUT REFERENCE TO ITS CONFLICT OF LAW PROVISIONS
        (OTHER THAN SECTION 5-1401 OF THE GENERAL OBLIGATIONS LAW), AND THE OBLIGATIONS,
        RIGHTS AND REMEDIES OF THE PARTIES HEREUNDER SHALL BE DETERMINED IN ACCORDANCE
        WITH SUCH LAWS. 

       

      No
        reference herein to the Indenture and no provision of this Note or of the
        Indenture shall alter or impair the obligation of the Issuer, which is absolute
        and unconditional, to pay the principal of and interest on this Note at the
        times, place and rate, and in the coin or currency herein prescribed.

       

      Anything
        herein to the contrary notwithstanding, except as expressly provided in the
        Operative Agreements, none of the Issuer in its individual capacity, the
        Owner
        Trustee in its individual capacity, the Indenture Trustee in its individual
        capacity, any owner of a beneficial interest in the Issuer, the Trust
        Administrator in its individual capacity, the Note Registrar, the Paying
        Agent
        or any of their respective partners, beneficiaries, agents, officers, directors,
        employees or successors or assigns shall be personally liable for, nor shall
        recourse be had to any of them for, the payment of principal of or interest
        on
        this Note or performance of, or omission to perform, any of the covenants,
        obligations or indemnifications contained in the Indenture. The Holder of
        this
        Note by its acceptance hereof agrees that, except as expressly provided in
        the
        Operative Agreements, in the case of an Event of Default under the Indenture,
        the Holder shall have no claim against any of the foregoing for any deficiency,
        loss or claim therefrom; provided,
        however,
        that
        nothing contained herein shall be taken to prevent recourse to, and enforcement
        against, the assets of the Issuer for any and all liabilities, obligations
        and
        undertakings contained in the Indenture or in this Note. 

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

      ASSIGNMENT

       

      Social
        Security or taxpayer I.D. or other identifying number of assignee:
        ________________________

       

      FOR
        VALUE
        RECEIVED, the undersigned hereby sells, assigns and transfers unto:

       

      
        	 	 	 

      

      (name
        and
        address of assignee)

       

      the
        within Note and all rights thereunder, and hereby irrevocably constitutes
        and
        appoints ________________________, attorney, to transfer said Note on the
        books
        kept for registration thereof, with full power of substitution in the premises.
        

       

      Dated:__________________________*/

       

      Signature
        Guaranteed: 

       

      ________________________________*/
        

       

      

       

      */
        NOTICE:
        The signature to this assignment must correspond with the name of the registered
        owner as it appears on the face of the within Note in every particular, without
        alteration, enlargement or any change whatever. Such signature must be
        guaranteed by an “eligible guarantor institution” meeting the requirements of
        the Note Registrar, which requirements include membership or participation
        in
        STAMP or such other “signature guarantee program” as may be determined by the
        Note Registrar in addition to, or in substitution for, STAMP, all in accordance
        with the Securities Exchange Act of 1934, as amended.

       

      

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

      UNLESS
        THIS NOTE IS PRESENTED BY AN AUTHORIZED REPRESENTATIVE OF THE DEPOSITORY
        TRUST
        COMPANY, A NEW YORK CORPORATION (“DTC”), TO THE ISSUER OR ITS AGENT FOR
        REGISTRATION OF TRANSFER, EXCHANGE OR PAYMENT, AND ANY NOTE ISSUED IS REGISTERED
        IN THE NAME OF CEDE & CO. OR IN SUCH OTHER NAME AS IS REQUESTED BY AN
        AUTHORIZED REPRESENTATIVE OF DTC (AND ANY PAYMENT IS MADE TO CEDE & CO. OR
        TO SUCH OTHER ENTITY AS IS REQUESTED BY AN AUTHORIZED REPRESENTATIVE OF DTC),
        ANY TRANSFER, PLEDGE OR OTHER USE HEREOF FOR VALUE OR OTHERWISE BY OR TO
        ANY
        PERSON IS WRONGFUL INASMUCH AS THE REGISTERED OWNER HEREOF, CEDE & CO., HAS
        AN INTEREST HEREIN.

       

      THIS
        NOTE
        DOES NOT EVIDENCE AN OBLIGATION OF OR AN INTEREST IN, AND IS NOT GUARANTEED
        BY,
        THE ISSUER, THE DEPOSITOR, THE MASTER SERVICER, THE SELLER, THE SERVICER,
        THE
        INDENTURE TRUSTEE, THE OWNER TRUSTEE, THE TRUST ADMINISTRATOR, OR ANY AFFILIATE
        OF ANY OF THEM AND IS NOT INSURED OR GUARANTEED BY ANY GOVERNMENTAL AGENCY
        OR
        PRIVATE INSURER.

       

      THE
        PRINCIPAL OF THIS NOTE IS PAYABLE IN INSTALLMENTS AS SET FORTH HEREIN.
        ACCORDINGLY, THE OUTSTANDING PRINCIPAL AMOUNT OF THIS NOTE AT ANY TIME MAY
        BE
        LESS THAN THE AMOUNT SHOWN ON THE FACE HEREOF.

       

      THIS
        NOTE
        IS SUBORDINATE IN RIGHT OF PAYMENT AS PROVIDED IN THE INDENTURE REFERRED
        TO
        HEREIN.

       

      EACH
        PURCHASER OF THIS NOTE WILL BE DEEMED TO HAVE MADE THE REPRESENTATIONS AND
        AGREEMENTS SET FORTH IN SECTION 2.03 OF THE INDENTURE. ANY TRANSFER IN VIOLATION
        OF THE FOREGOING WILL BE OF NO FORCE AND EFFECT, WILL BE VOID AB
        INITIO,
        AND
        WILL NOT OPERATE TO TRANSFER ANY RIGHTS TO THE TRANSFEREE, NOTWITHSTANDING
        ANY
        INSTRUCTIONS TO THE CONTRARY TO THE ISSUER, THE INDENTURE TRUSTEE OR ANY
        INTERMEDIARY.

       

      THIS
        NOTE
        MAY NOT BE ACQUIRED BY A TRANSFEREE FOR, OR ON BEHALF OF AN EMPLOYEE BENEFIT
        PLAN OR OTHER RETIREMENT ARRANGEMENT THAT IS SUBJECT TO THE EMPLOYEE RETIREMENT
        INCOME SECURITY ACT OF 1974, AS AMENDED (“ERISA”) OR SECTION 4975 OF THE
        INTERNAL REVENUE CODE OF 1986, AS AMENDED (THE “CODE”) OR TO ANY SUBSTANTIALLY
        SIMILAR LAW (“SIMILAR LAW”) OR ANY ENTITY DEEMED TO HOLD THE PLAN ASSETS OF THE
        FOREGOING (“BENEFIT PLAN”), UNLESS THE TRANSFEREE REPRESENTS AND WARRANTS THAT
        THE ACQUISITION AND HOLDING OF THIS NOTE: (X) WILL NOT RESULT IN A NON-EXEMPT
        PROHIBITED TRANSACTION UNDER SECTION 406 OF ERISA OR SECTION 4975 OF THE
        CODE
        WHICH IS NOT COVERED BY PROHIBITED TRANSACTION CLASS EXEMPTION (“PTCE”) 84-14,
        PTCE 90-1, PTCE 91-38, PTCE 95-60, PTCE 96-23 OR SOME OTHER APPLICABLE EXEMPTION
        AND (Y) WILL NOT RESULT IN A NON-EXEMPT VIOLATION OF ANY SUBSTANTIALLY SIMILAR
        APPLICABLE LAW. EACH INVESTOR IN THIS NOTE WILL BE DEEMED TO MAKE THE FOREGOING
        REPRESENTATIONS AND WILL FURTHER BE DEEMED TO REPRESENT, WARRANT AND COVENANT
        THAT IT WILL NOT SELL, PLEDGE OR OTHERWISE TRANSFER THIS NOTE IN VIOLATION
        OF
        THE FOREGOING.

       

      

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

      AAMES
        MORTGAGE INVESTMENT TRUST 2006-1

       

      

       

      CLASS
        M-8
        NOTES

       

      

       

      
        	
                Aggregate
                  Class Principal Amount of

              	
                Class
                  Principal Amount

              
	
                the
                  Class M-8 Notes: $6,115,000.00

              	
                of
                  this Note: $6,115,000.00

                 

              
	
                Interest
                  Rate: Adjustable

              	
                Cut-off
                  Date: April 1, 2006

                 

              
	
                Number:
                  1

              	
                CUSIP
                  No.: 00252G AM 1

              

      

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

      AAMES
        MORTGAGE INVESTMENT TRUST 2006-1, a statutory trust organized and existing
        under
        the laws of the State of Delaware (herein referred to as the “Issuer”), for
        value received, hereby promises to pay to CEDE & CO., or registered assigns,
        the principal sum of SIX MILLION ONE HUNDRED AND FIFTEEN THOUSAND DOLLARS
        AND
        NO/100 ($6,115,000.00)
        payable on each Payment Date in an amount equal to the result obtained by
        multiplying (A) the Percentage Interest evidenced by this Note (obtained
        by
        dividing the initial Class Principal Amount of this Note by the initial Class
        Principal Amount of all Class M-8 Notes, both as specified above) and (B)
        the
        amount payable on such Payment Date in respect of principal of the Class
        M-8
        Notes pursuant to the Indenture dated as of April 1, 2006 (as amended and
        supplemented from time to time, the “Indenture”), among the Issuer, Wells Fargo
        Bank, N.A., as Trust Administrator (the “Trust Administrator”) and Deutsche Bank
        National Trust Company, as Indenture Trustee (the “Indenture Trustee”);
provided,
        however,
        that
        the entire unpaid principal amount of this Note shall be due and payable
        on the
        Payment Date occurring in April 2036 (the “Maturity Date”) or as otherwise
        specified in the Indenture. Capitalized terms used but not defined herein
        have
        the meanings assigned to such terms in the Indenture or the Transfer and
        Servicing Agreement dated as of April 1, 2006 (as amended and supplemented
        from
        time to time, the “Transfer and Servicing Agreement”), by and among the Issuer,
        Financial Asset Securities Corp., as depositor (the “Depositor”), Wells Fargo
        Bank, N.A., as trust administrator (in such capacity, the “Trust Administrator”)
        and as master servicer (in such capacity, the “Master Servicer”), Aames Funding
        Corporation, as servicer, Aames Investment Corporation, as seller, and the
        Indenture Trustee, which agreements also contain rules as to construction
        that
        shall be applicable herein.

       

      The
        Issuer will pay interest on this Note at a per annum rate equal to the
        applicable Interest Rate, on the principal amount of this Note outstanding
        on
        the immediately preceding Payment Date (after giving effect to all payments
        of
        principal made on such preceding Payment Date) on each Payment Date until
        the
        principal of this Note is paid or made available for payment in
        full.

       

      Payments
        on this Note will be made on the 25th day of each month or, if such a day
        is not
        a Business Day, then on the next succeeding Business Day, commencing in May
        2006
        (each, a “Payment Date”), to the Person in whose name this Note is registered at
        the close of business on the Business Day immediately preceding such Payment
        Date (the “Record Date”), in an amount equal to the product of the Percentage
        Interest evidenced by this Note and the amount, if any, required to be
        distributed to all the Notes of the Class represented by this Note. All sums
        distributable on this Note are payable in 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. Such principal of and interest on this Note
        shall
        be paid in the manner specified on the reverse hereof.

       

      All
        payments made by the Issuer with respect to this Note shall be applied as
        provided in the Transfer and Servicing Agreement.

       

      Reference
        is made to the further provisions of this Note set forth on the reverse hereof,
        which shall have the same effect as though fully set forth on the face of
        this
        Note. 

       

      Unless
        the certificate of authentication hereon has been executed by the Trust
        Administrator whose name appears below by manual signature, this Note shall
        not
        be entitled to any benefit under the Indenture referred to on the reverse
        hereof, or be valid or obligatory for any purpose. 

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

      IN
        WITNESS WHEREOF, the Issuer has caused this instrument to be signed, manually
        or
        in facsimile, by its Authorized Officer, as of the date set forth below.
        

       

      AAMES
        MORTGAGE INVESTMENT TRUST 2006-1

       

      By: WILMINGTON
        TRUST COMPANY, 

      not
        in
        its individual capacity but solely as Owner Trustee 

      under
        the
        Trust Agreement

       

      By:
        ________________________________________

      Authorized
        Signatory 

       

      Dated:
        ____________________, 2006

       

      TRUST
        ADMINISTRATOR’S CERTIFICATE OF AUTHENTICATION

       

      This
        is
        one of the Notes designated above and referred to in the within-mentioned
        Indenture. 

       

      WELLS
        FARGO BANK, N.A.,

      not
        in
        its individual capacity but solely as Trust Administrator,

       

      By:
        ________________________________________

      Authorized
        Signatory 

       

      Dated:
        ___________________, 2006

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

      AAMES
        MORTGAGE INVESTMENT TRUST 2006-1

       

      This
        Note
        is one of a duly authorized issue of Notes of the Issuer, all issued under
        the
        Indenture, to which Indenture and all indentures supplemental thereto reference
        is hereby made for a statement of the respective rights and obligations
        thereunder of the Issuer, the Indenture Trustee and the Holders of the Notes.
        To
        the extent that any provision of this Note contradicts or is inconsistent
        with
        the provisions of the Indenture, the provisions of the Indenture shall control
        and supersede such contradictory or inconsistent provision herein. This Note
        is
        subject to all terms of the Indenture. 

       

      The
        Class
        A-1, Class A-2, Class A-3 and Class A-4 Notes (the “Senior Notes”) are, and will
        be, equally and ratably secured by the collateral pledged as security therefor
        as provided in the Indenture. The rights of the Holders of the Class M-1,
        Class
        M-2, Class M-3, Class M-4, Class M-5, Class M-6, Class M-7, Class M-8, Class
        M-9, Class M-10 and Class M-11 Notes (the “Subordinate Notes”) to receive
        payments or distribution of interest and principal are, and will be, subordinate
        to the rights of the Holders of the Senior Notes to receive payments of interest
        and principal, respectively, as provided in the Indenture.

       

      Payments
        to each Noteholder shall be made upon written request made to the Note Registrar
        and Paying Agent at least five Business Days prior to the related Record
        Date by
        the Holder of a Note having an initial Note Principal Amount of not less
        than
        $2,500,000, by wire transfer in immediately available funds to an account
        specified in writing by such Noteholder. The final payment in retirement
        of this
        Note shall be made only upon surrender of this Note to the Note Registrar
        and
        Paying Agent at the office thereof specified in the notice to Noteholders
        of
        such final payment mailed prior to the Payment Date on which the final payment
        is expected to be made to the Holder thereof.

       

      As
        provided in the Indenture and subject to certain limitations set forth therein,
        the transfer of this Note may be registered by the Note Registrar upon surrender
        of this Note for registration of transfer at the office or agency designated
        by
        the Issuer pursuant to the Indenture, duly endorsed by, or accompanied by
        a
        written instrument of transfer in form satisfactory to the Note Registrar
        duly
        executed by, the Holder hereof or such Holder’s attorney duly authorized in
        writing, with such signature guaranteed by an “eligible guarantor institution”
meeting the requirements of the Note Registrar, which requirements include
        membership or participation in the Securities Transfer Agent’s Medallion Program
        (“STAMP”) or such other “signature guarantee program” as may be determined by
        the Note Registrar in addition to, or in substitution for, STAMP, all in
        accordance with the Securities Exchange Act of 1934, as amended, and thereupon
        one or more new Notes of authorized denominations and in the same aggregate
        principal amount will be issued to the designated transferee or transferees.
        No
        service charge will be charged for any registration of transfer or exchange
        of
        this Note, but the transferor may be required to pay a sum sufficient to
        cover
        any tax or other governmental charge that may be imposed in connection with
        any
        such registration of transfer or exchange. 

       

      The
        Notes
        will be issued in minimum denominations of $25,000 in original principal
        amount
        and integral multiples of $1 in excess thereof, provided, that the initial
        sale
        of any Notes shall be in increments of no less than $100,000.

       

      The
        Notes
        are subject to optional redemption in accordance with the Indenture and the
        Transfer and Servicing Agreement. 

       

      Each
        Noteholder and Note Owner, by acceptance of a Note or, in the case of a Note
        Owner, a beneficial interest in a Note, covenants and agrees that no recourse
        may be taken, directly or indirectly, with respect to the obligations of
        the
        Issuer, the Owner Trustee or the Indenture Trustee on the Notes or under
        the
        Indenture or any certificate or other writing delivered in connection therewith,
        against (i) the Indenture Trustee, or the Owner Trustee in their respective
        individual capacities, (ii) any owner of a beneficial interest in the Issuer
        or
        (iii) any partner, owner, beneficiary, agent, officer, director or employee
        of
        the Indenture Trustee or the Owner Trustee in its individual capacity, any
        holder of a beneficial interest in the Issuer, the Owner Trustee or the
        Indenture Trustee or of any successor or assign of the Indenture Trustee
        or the
        Owner Trustee in its individual capacity, except as any such Person may have
        expressly agreed and except that any such partner, owner or beneficiary shall
        be
        fully liable, to the extent provided by applicable law, for any unpaid
        consideration for stock, unpaid capital contribution or failure to pay any
        installment or call owing to such entity.

       

      Each
        Noteholder and Note Owner, by acceptance of a Note or, in the case of a Note
        Owner, a beneficial interest in a Note, covenants and agrees by accepting
        the
        benefits of the Indenture that such Noteholder or Note Owner will not at
        any
        time institute against the Depositor or the Issuer, or join in any institution
        against the Depositor or the Issuer of, any bankruptcy, reorganization,
        arrangement, insolvency or liquidation proceedings under any United States
        federal or state bankruptcy or similar law in connection with any obligations
        relating to the Notes, the Indenture or the other Operative Agreements.

       

      Each
        Noteholder and Note Owner, by acceptance of a Note or, in the case of a Note
        Owner, a beneficial interest in a Note, consents to and agrees to be bound
        by
        the terms and conditions of the Indenture.

       

      The
        Issuer has entered into the Indenture and this Note is issued with the intention
        that, for federal, state and local income, single business and franchise
        tax
        purposes, the Notes will qualify as indebtedness of the Issuer secured by
        the
        Collateral. Each Noteholder, by acceptance of a Note (and each Note Owner
        by
        acceptance of a beneficial interest in a Note), agrees to treat the Notes
        for
        all federal, state and local income tax purposes as indebtedness (except
        that
        any Note held by a person that, for federal income tax purposes, owns or
        is
        treated as owning a 100% Percentage Interest of the Ownership Certificate
        shall
        not be treated as outstanding indebtedness). 

       

      Prior
        to
        the due presentment for registration of transfer of this Note, the Issuer,
        the
        Indenture Trustee, the Trust Administrator, the Note Registrar, the Paying
        Agent
        and any agent of the Issuer, the Indenture Trustee, the Trust Administrator,
        the
        Note Registrar or the Paying Agent may treat the Person in whose name this
        Note
        (as of the day of determination or as of such other date as may be specified
        in
        the Indenture) is registered as the owner hereof for all purposes, whether
        or
        not this Note be overdue, and none of the Issuer, the Indenture Trustee,
        the
        Note Registrar, the Paying Agent or any such agent shall be affected by notice
        to the contrary. 

       

      The
        Indenture permits, with certain exceptions as therein provided, the amendment
        thereof by supplemental indenture and the modification of the rights and
        obligations of the Issuer and the rights of the Holders of the Notes under
        the
        Indenture at any time by the Depositor, the Issuer and the Indenture Trustee
        with the consent of the Holders of not less than 66-2/3% of the Outstanding
        Balance of the Notes for the purpose of adding any provisions to or changing
        in
        any manner or eliminating any of the provisions of the Indenture or of modifying
        in any manner the rights of the Noteholders. Any such consent or waiver by
        the
        Holder of this Note (or any one or more Predecessor Notes) shall be conclusive
        and binding upon such Holder and upon all future Holders of this Note and
        of any
        Note issued upon the registration of transfer hereof or in exchange hereof
        or in
        lieu hereof whether or not notation of such consent or waiver is made upon
        this
        Note. The Indenture also permits the amendment thereof, in certain limited
        circumstances, or the waiver of certain terms and conditions set forth in
        the
        Indenture, without the consent of Holders of the Notes issued thereunder.
        

       

      The
        term
“Issuer” as used in this Note includes any successor to the Issuer under the
        Indenture. 

       

      The
        Notes
        are issuable only in registered form in denominations as provided in the
        Indenture, subject to certain limitations therein set forth. 

       

      THIS
        NOTE
        AND THE INDENTURE SHALL BE GOVERNED BY AND CONSTRUED IN ACCORDANCE WITH THE
        LAWS
        OF THE STATE OF NEW YORK, WITHOUT REFERENCE TO ITS CONFLICT OF LAW PROVISIONS
        (OTHER THAN SECTION 5-1401 OF THE GENERAL OBLIGATIONS LAW), AND THE OBLIGATIONS,
        RIGHTS AND REMEDIES OF THE PARTIES HEREUNDER SHALL BE DETERMINED IN ACCORDANCE
        WITH SUCH LAWS. 

       

      No
        reference herein to the Indenture and no provision of this Note or of the
        Indenture shall alter or impair the obligation of the Issuer, which is absolute
        and unconditional, to pay the principal of and interest on this Note at the
        times, place and rate, and in the coin or currency herein prescribed.

       

      Anything
        herein to the contrary notwithstanding, except as expressly provided in the
        Operative Agreements, none of the Issuer in its individual capacity, the
        Owner
        Trustee in its individual capacity, the Indenture Trustee in its individual
        capacity, any owner of a beneficial interest in the Issuer, the Trust
        Administrator in its individual capacity, the Note Registrar, the Paying
        Agent
        or any of their respective partners, beneficiaries, agents, officers, directors,
        employees or successors or assigns shall be personally liable for, nor shall
        recourse be had to any of them for, the payment of principal of or interest
        on
        this Note or performance of, or omission to perform, any of the covenants,
        obligations or indemnifications contained in the Indenture. The Holder of
        this
        Note by its acceptance hereof agrees that, except as expressly provided in
        the
        Operative Agreements, in the case of an Event of Default under the Indenture,
        the Holder shall have no claim against any of the foregoing for any deficiency,
        loss or claim therefrom; provided,
        however,
        that
        nothing contained herein shall be taken to prevent recourse to, and enforcement
        against, the assets of the Issuer for any and all liabilities, obligations
        and
        undertakings contained in the Indenture or in this Note. 

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

      ASSIGNMENT

       

      Social
        Security or taxpayer I.D. or other identifying number of assignee:
        ________________________

       

      FOR
        VALUE
        RECEIVED, the undersigned hereby sells, assigns and transfers unto:

       

      
        	 	 	 

      

      (name
        and
        address of assignee)

       

      the
        within Note and all rights thereunder, and hereby irrevocably constitutes
        and
        appoints ________________________, attorney, to transfer said Note on the
        books
        kept for registration thereof, with full power of substitution in the premises.
        

       

      Dated:__________________________*/

       

      Signature
        Guaranteed: 

       

      ________________________________*/
        

       

      

       

      */
        NOTICE:
        The signature to this assignment must correspond with the name of the registered
        owner as it appears on the face of the within Note in every particular, without
        alteration, enlargement or any change whatever. Such signature must be
        guaranteed by an “eligible guarantor institution” meeting the requirements of
        the Note Registrar, which requirements include membership or participation
        in
        STAMP or such other “signature guarantee program” as may be determined by the
        Note Registrar in addition to, or in substitution for, STAMP, all in accordance
        with the Securities Exchange Act of 1934, as amended.

       

      

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

      UNLESS
        THIS NOTE IS PRESENTED BY AN AUTHORIZED REPRESENTATIVE OF THE DEPOSITORY
        TRUST
        COMPANY, A NEW YORK CORPORATION (“DTC”), TO THE ISSUER OR ITS AGENT FOR
        REGISTRATION OF TRANSFER, EXCHANGE OR PAYMENT, AND ANY NOTE ISSUED IS REGISTERED
        IN THE NAME OF CEDE & CO. OR IN SUCH OTHER NAME AS IS REQUESTED BY AN
        AUTHORIZED REPRESENTATIVE OF DTC (AND ANY PAYMENT IS MADE TO CEDE & CO. OR
        TO SUCH OTHER ENTITY AS IS REQUESTED BY AN AUTHORIZED REPRESENTATIVE OF DTC),
        ANY TRANSFER, PLEDGE OR OTHER USE HEREOF FOR VALUE OR OTHERWISE BY OR TO
        ANY
        PERSON IS WRONGFUL INASMUCH AS THE REGISTERED OWNER HEREOF, CEDE & CO., HAS
        AN INTEREST HEREIN.

       

      THIS
        NOTE
        DOES NOT EVIDENCE AN OBLIGATION OF OR AN INTEREST IN, AND IS NOT GUARANTEED
        BY,
        THE ISSUER, THE DEPOSITOR, THE MASTER SERVICER, THE SELLER, THE SERVICER,
        THE
        INDENTURE TRUSTEE, THE OWNER TRUSTEE, THE TRUST ADMINISTRATOR, OR ANY AFFILIATE
        OF ANY OF THEM AND IS NOT INSURED OR GUARANTEED BY ANY GOVERNMENTAL AGENCY
        OR
        PRIVATE INSURER.

       

      THE
        PRINCIPAL OF THIS NOTE IS PAYABLE IN INSTALLMENTS AS SET FORTH HEREIN.
        ACCORDINGLY, THE OUTSTANDING PRINCIPAL AMOUNT OF THIS NOTE AT ANY TIME MAY
        BE
        LESS THAN THE AMOUNT SHOWN ON THE FACE HEREOF.

       

      THIS
        NOTE
        IS SUBORDINATE IN RIGHT OF PAYMENT AS PROVIDED IN THE INDENTURE REFERRED
        TO
        HEREIN.

       

      EACH
        PURCHASER OF THIS NOTE WILL BE DEEMED TO HAVE MADE THE REPRESENTATIONS AND
        AGREEMENTS SET FORTH IN SECTION 2.03 OF THE INDENTURE. ANY TRANSFER IN VIOLATION
        OF THE FOREGOING WILL BE OF NO FORCE AND EFFECT, WILL BE VOID AB
        INITIO,
        AND
        WILL NOT OPERATE TO TRANSFER ANY RIGHTS TO THE TRANSFEREE, NOTWITHSTANDING
        ANY
        INSTRUCTIONS TO THE CONTRARY TO THE ISSUER, THE INDENTURE TRUSTEE OR ANY
        INTERMEDIARY.

       

      THIS
        NOTE
        MAY NOT BE ACQUIRED BY A TRANSFEREE FOR, OR ON BEHALF OF AN EMPLOYEE BENEFIT
        PLAN OR OTHER RETIREMENT ARRANGEMENT THAT IS SUBJECT TO THE EMPLOYEE RETIREMENT
        INCOME SECURITY ACT OF 1974, AS AMENDED (“ERISA”) OR SECTION 4975 OF THE
        INTERNAL REVENUE CODE OF 1986, AS AMENDED (THE “CODE”) OR TO ANY SUBSTANTIALLY
        SIMILAR LAW (“SIMILAR LAW”) OR ANY ENTITY DEEMED TO HOLD THE PLAN ASSETS OF THE
        FOREGOING (“BENEFIT PLAN”), UNLESS THE TRANSFEREE REPRESENTS AND WARRANTS THAT
        THE ACQUISITION AND HOLDING OF THIS NOTE: (X) WILL NOT RESULT IN A NON-EXEMPT
        PROHIBITED TRANSACTION UNDER SECTION 406 OF ERISA OR SECTION 4975 OF THE
        CODE
        WHICH IS NOT COVERED BY PROHIBITED TRANSACTION CLASS EXEMPTION (“PTCE”) 84-14,
        PTCE 90-1, PTCE 91-38, PTCE 95-60, PTCE 96-23 OR SOME OTHER APPLICABLE EXEMPTION
        AND (Y) WILL NOT RESULT IN A NON-EXEMPT VIOLATION OF ANY SUBSTANTIALLY SIMILAR
        APPLICABLE LAW. EACH INVESTOR IN THIS NOTE WILL BE DEEMED TO MAKE THE FOREGOING
        REPRESENTATIONS AND WILL FURTHER BE DEEMED TO REPRESENT, WARRANT AND COVENANT
        THAT IT WILL NOT SELL, PLEDGE OR OTHERWISE TRANSFER THIS NOTE IN VIOLATION
        OF
        THE FOREGOING.

       

      

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

      AAMES
        MORTGAGE INVESTMENT TRUST 2006-1

       

      

       

      CLASS
        M-9
        NOTES

       

      

       

      
        	
                Aggregate
                  Class Principal Amount of

              	
                Class
                  Principal Amount

              
	
                the
                  Class M-9 Notes: $5,504,000.00

              	
                of
                  this Note: $5,504,000.00

                 

              
	
                Interest
                  Rate: Adjustable

              	
                Cut-off
                  Date: April 1, 2006

                 

              
	
                Number:
                  1

              	
                CUSIP
                  No.: 00252G AN 9

              

      

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

      AAMES
        MORTGAGE INVESTMENT TRUST 2006-1, a statutory trust organized and existing
        under
        the laws of the State of Delaware (herein referred to as the “Issuer”), for
        value received, hereby promises to pay to CEDE & CO., or registered assigns,
        the principal sum of FIVE MILLION FIVE HUNDRED AND FOUR THOUSAND DOLLARS
        AND NO/100 ($5,504,000.00)
        payable on each Payment Date in an amount equal to the result obtained by
        multiplying (A) the Percentage Interest evidenced by this Note (obtained
        by
        dividing the initial Class Principal Amount of this Note by the initial Class
        Principal Amount of all Class M-9 Notes, both as specified above) and (B)
        the
        amount payable on such Payment Date in respect of principal of the Class
        M-9
        Notes pursuant to the Indenture dated as of April 1, 2006 (as amended and
        supplemented from time to time, the “Indenture”), among the Issuer, Wells Fargo
        Bank, N.A., as Trust Administrator (the “Trust Administrator”) and Deutsche Bank
        National Trust Company, as Indenture Trustee (the “Indenture Trustee”);
provided,
        however,
        that
        the entire unpaid principal amount of this Note shall be due and payable
        on the
        Payment Date occurring in April 2036 (the “Maturity Date”) or as otherwise
        specified in the Indenture. Capitalized terms used but not defined herein
        have
        the meanings assigned to such terms in the Indenture or the Transfer and
        Servicing Agreement dated as of April 1, 2006 (as amended and supplemented
        from
        time to time, the “Transfer and Servicing Agreement”), by and among the Issuer,
        Financial Asset Securities Corp., as depositor (the “Depositor”), Wells Fargo
        Bank, N.A., as trust administrator (in such capacity, the “Trust Administrator”)
        and as master servicer (in such capacity, the “Master Servicer”), Aames Funding
        Corporation, as servicer, Aames Investment Corporation, as seller, and the
        Indenture Trustee, which agreements also contain rules as to construction
        that
        shall be applicable herein.

       

      The
        Issuer will pay interest on this Note at a per annum rate equal to the
        applicable Interest Rate, on the principal amount of this Note outstanding
        on
        the immediately preceding Payment Date (after giving effect to all payments
        of
        principal made on such preceding Payment Date) on each Payment Date until
        the
        principal of this Note is paid or made available for payment in
        full.

       

      Payments
        on this Note will be made on the 25th day of each month or, if such a day
        is not
        a Business Day, then on the next succeeding Business Day, commencing in May
        2006
        (each, a “Payment Date”), to the Person in whose name this Note is registered at
        the close of business on the Business Day immediately preceding such Payment
        Date (the “Record Date”), in an amount equal to the product of the Percentage
        Interest evidenced by this Note and the amount, if any, required to be
        distributed to all the Notes of the Class represented by this Note. All sums
        distributable on this Note are payable in 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. Such principal of and interest on this Note
        shall
        be paid in the manner specified on the reverse hereof.

       

      All
        payments made by the Issuer with respect to this Note shall be applied as
        provided in the Transfer and Servicing Agreement.

       

      Reference
        is made to the further provisions of this Note set forth on the reverse hereof,
        which shall have the same effect as though fully set forth on the face of
        this
        Note. 

       

      Unless
        the certificate of authentication hereon has been executed by the Trust
        Administrator whose name appears below by manual signature, this Note shall
        not
        be entitled to any benefit under the Indenture referred to on the reverse
        hereof, or be valid or obligatory for any purpose. 

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

      IN
        WITNESS WHEREOF, the Issuer has caused this instrument to be signed, manually
        or
        in facsimile, by its Authorized Officer, as of the date set forth below.
        

       

      AAMES
        MORTGAGE INVESTMENT TRUST 2006-1

       

      By: WILMINGTON
        TRUST COMPANY, 

      not
        in
        its individual capacity but solely as Owner Trustee 

      under
        the
        Trust Agreement

       

      By:
        ________________________________________

      Authorized
        Signatory 

       

      Dated:
        ____________________, 2006

       

      TRUST
        ADMINISTRATOR’S CERTIFICATE OF AUTHENTICATION

       

      This
        is
        one of the Notes designated above and referred to in the within-mentioned
        Indenture. 

       

      WELLS
        FARGO BANK, N.A.,

      not
        in
        its individual capacity but solely as Trust Administrator,

       

      By:
        ________________________________________

      Authorized
        Signatory 

       

      Dated:
        ___________________, 2006

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

      AAMES
        MORTGAGE INVESTMENT TRUST 2006-1

       

      This
        Note
        is one of a duly authorized issue of Notes of the Issuer, all issued under
        the
        Indenture, to which Indenture and all indentures supplemental thereto reference
        is hereby made for a statement of the respective rights and obligations
        thereunder of the Issuer, the Indenture Trustee and the Holders of the Notes.
        To
        the extent that any provision of this Note contradicts or is inconsistent
        with
        the provisions of the Indenture, the provisions of the Indenture shall control
        and supersede such contradictory or inconsistent provision herein. This Note
        is
        subject to all terms of the Indenture. 

       

      The
        Class
        A-1, Class A-2, Class A-3 and Class A-4 Notes (the “Senior Notes”) are, and will
        be, equally and ratably secured by the collateral pledged as security therefor
        as provided in the Indenture. The rights of the Holders of the Class M-1,
        Class
        M-2, Class M-3, Class M-4, Class M-5, Class M-6, Class M-7, Class M-8, Class
        M-9, Class M-10 and Class M-11 Notes (the “Subordinate Notes”) to receive
        payments or distribution of interest and principal are, and will be, subordinate
        to the rights of the Holders of the Senior Notes to receive payments of interest
        and principal, respectively, as provided in the Indenture.

       

      Payments
        to each Noteholder shall be made upon written request made to the Note Registrar
        and Paying Agent at least five Business Days prior to the related Record
        Date by
        the Holder of a Note having an initial Note Principal Amount of not less
        than
        $2,500,000, by wire transfer in immediately available funds to an account
        specified in writing by such Noteholder. The final payment in retirement
        of this
        Note shall be made only upon surrender of this Note to the Note Registrar
        and
        Paying Agent at the office thereof specified in the notice to Noteholders
        of
        such final payment mailed prior to the Payment Date on which the final payment
        is expected to be made to the Holder thereof.

       

      As
        provided in the Indenture and subject to certain limitations set forth therein,
        the transfer of this Note may be registered by the Note Registrar upon surrender
        of this Note for registration of transfer at the office or agency designated
        by
        the Issuer pursuant to the Indenture, duly endorsed by, or accompanied by
        a
        written instrument of transfer in form satisfactory to the Note Registrar
        duly
        executed by, the Holder hereof or such Holder’s attorney duly authorized in
        writing, with such signature guaranteed by an “eligible guarantor institution”
meeting the requirements of the Note Registrar, which requirements include
        membership or participation in the Securities Transfer Agent’s Medallion Program
        (“STAMP”) or such other “signature guarantee program” as may be determined by
        the Note Registrar in addition to, or in substitution for, STAMP, all in
        accordance with the Securities Exchange Act of 1934, as amended, and thereupon
        one or more new Notes of authorized denominations and in the same aggregate
        principal amount will be issued to the designated transferee or transferees.
        No
        service charge will be charged for any registration of transfer or exchange
        of
        this Note, but the transferor may be required to pay a sum sufficient to
        cover
        any tax or other governmental charge that may be imposed in connection with
        any
        such registration of transfer or exchange. 

       

      The
        Notes
        will be issued in minimum denominations of $25,000 in original principal
        amount
        and integral multiples of $1 in excess thereof, provided, that the initial
        sale
        of any Notes shall be in increments of no less than $100,000.

       

      The
        Notes
        are subject to optional redemption in accordance with the Indenture and the
        Transfer and Servicing Agreement. 

       

      Each
        Noteholder and Note Owner, by acceptance of a Note or, in the case of a Note
        Owner, a beneficial interest in a Note, covenants and agrees that no recourse
        may be taken, directly or indirectly, with respect to the obligations of
        the
        Issuer, the Owner Trustee or the Indenture Trustee on the Notes or under
        the
        Indenture or any certificate or other writing delivered in connection therewith,
        against (i) the Indenture Trustee, or the Owner Trustee in their respective
        individual capacities, (ii) any owner of a beneficial interest in the Issuer
        or
        (iii) any partner, owner, beneficiary, agent, officer, director or employee
        of
        the Indenture Trustee or the Owner Trustee in its individual capacity, any
        holder of a beneficial interest in the Issuer, the Owner Trustee or the
        Indenture Trustee or of any successor or assign of the Indenture Trustee
        or the
        Owner Trustee in its individual capacity, except as any such Person may have
        expressly agreed and except that any such partner, owner or beneficiary shall
        be
        fully liable, to the extent provided by applicable law, for any unpaid
        consideration for stock, unpaid capital contribution or failure to pay any
        installment or call owing to such entity.

       

      Each
        Noteholder and Note Owner, by acceptance of a Note or, in the case of a Note
        Owner, a beneficial interest in a Note, covenants and agrees by accepting
        the
        benefits of the Indenture that such Noteholder or Note Owner will not at
        any
        time institute against the Depositor or the Issuer, or join in any institution
        against the Depositor or the Issuer of, any bankruptcy, reorganization,
        arrangement, insolvency or liquidation proceedings under any United States
        federal or state bankruptcy or similar law in connection with any obligations
        relating to the Notes, the Indenture or the other Operative Agreements.

       

      Each
        Noteholder and Note Owner, by acceptance of a Note or, in the case of a Note
        Owner, a beneficial interest in a Note, consents to and agrees to be bound
        by
        the terms and conditions of the Indenture.

       

      The
        Issuer has entered into the Indenture and this Note is issued with the intention
        that, for federal, state and local income, single business and franchise
        tax
        purposes, the Notes will qualify as indebtedness of the Issuer secured by
        the
        Collateral. Each Noteholder, by acceptance of a Note (and each Note Owner
        by
        acceptance of a beneficial interest in a Note), agrees to treat the Notes
        for
        all federal, state and local income tax purposes as indebtedness (except
        that
        any Note held by a person that, for federal income tax purposes, owns or
        is
        treated as owning a 100% Percentage Interest of the Ownership Certificate
        shall
        not be treated as outstanding indebtedness). 

       

      Prior
        to
        the due presentment for registration of transfer of this Note, the Issuer,
        the
        Indenture Trustee, the Trust Administrator, the Note Registrar, the Paying
        Agent
        and any agent of the Issuer, the Indenture Trustee, the Trust Administrator,
        the
        Note Registrar or the Paying Agent may treat the Person in whose name this
        Note
        (as of the day of determination or as of such other date as may be specified
        in
        the Indenture) is registered as the owner hereof for all purposes, whether
        or
        not this Note be overdue, and none of the Issuer, the Indenture Trustee,
        the
        Note Registrar, the Paying Agent or any such agent shall be affected by notice
        to the contrary. 

       

      The
        Indenture permits, with certain exceptions as therein provided, the amendment
        thereof by supplemental indenture and the modification of the rights and
        obligations of the Issuer and the rights of the Holders of the Notes under
        the
        Indenture at any time by the Depositor, the Issuer and the Indenture Trustee
        with the consent of the Holders of not less than 66-2/3% of the Outstanding
        Balance of the Notes for the purpose of adding any provisions to or changing
        in
        any manner or eliminating any of the provisions of the Indenture or of modifying
        in any manner the rights of the Noteholders. Any such consent or waiver by
        the
        Holder of this Note (or any one or more Predecessor Notes) shall be conclusive
        and binding upon such Holder and upon all future Holders of this Note and
        of any
        Note issued upon the registration of transfer hereof or in exchange hereof
        or in
        lieu hereof whether or not notation of such consent or waiver is made upon
        this
        Note. The Indenture also permits the amendment thereof, in certain limited
        circumstances, or the waiver of certain terms and conditions set forth in
        the
        Indenture, without the consent of Holders of the Notes issued thereunder.
        

       

      The
        term
“Issuer” as used in this Note includes any successor to the Issuer under the
        Indenture. 

       

      The
        Notes
        are issuable only in registered form in denominations as provided in the
        Indenture, subject to certain limitations therein set forth. 

       

      THIS
        NOTE
        AND THE INDENTURE SHALL BE GOVERNED BY AND CONSTRUED IN ACCORDANCE WITH THE
        LAWS
        OF THE STATE OF NEW YORK, WITHOUT REFERENCE TO ITS CONFLICT OF LAW PROVISIONS
        (OTHER THAN SECTION 5-1401 OF THE GENERAL OBLIGATIONS LAW), AND THE OBLIGATIONS,
        RIGHTS AND REMEDIES OF THE PARTIES HEREUNDER SHALL BE DETERMINED IN ACCORDANCE
        WITH SUCH LAWS. 

       

      No
        reference herein to the Indenture and no provision of this Note or of the
        Indenture shall alter or impair the obligation of the Issuer, which is absolute
        and unconditional, to pay the principal of and interest on this Note at the
        times, place and rate, and in the coin or currency herein prescribed.

       

      Anything
        herein to the contrary notwithstanding, except as expressly provided in the
        Operative Agreements, none of the Issuer in its individual capacity, the
        Owner
        Trustee in its individual capacity, the Indenture Trustee in its individual
        capacity, any owner of a beneficial interest in the Issuer, the Trust
        Administrator in its individual capacity, the Note Registrar, the Paying
        Agent
        or any of their respective partners, beneficiaries, agents, officers, directors,
        employees or successors or assigns shall be personally liable for, nor shall
        recourse be had to any of them for, the payment of principal of or interest
        on
        this Note or performance of, or omission to perform, any of the covenants,
        obligations or indemnifications contained in the Indenture. The Holder of
        this
        Note by its acceptance hereof agrees that, except as expressly provided in
        the
        Operative Agreements, in the case of an Event of Default under the Indenture,
        the Holder shall have no claim against any of the foregoing for any deficiency,
        loss or claim therefrom; provided,
        however,
        that
        nothing contained herein shall be taken to prevent recourse to, and enforcement
        against, the assets of the Issuer for any and all liabilities, obligations
        and
        undertakings contained in the Indenture or in this Note. 

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

      ASSIGNMENT

       

      Social
        Security or taxpayer I.D. or other identifying number of assignee:
        ________________________

       

      FOR
        VALUE
        RECEIVED, the undersigned hereby sells, assigns and transfers unto:

       

      
        	 	 	 

      

      (name
        and
        address of assignee)

       

      the
        within Note and all rights thereunder, and hereby irrevocably constitutes
        and
        appoints ________________________, attorney, to transfer said Note on the
        books
        kept for registration thereof, with full power of substitution in the premises.
        

       

      Dated:__________________________*/

       

      Signature
        Guaranteed: 

       

      ________________________________*/
        

       

      

       

      */
        NOTICE:
        The signature to this assignment must correspond with the name of the registered
        owner as it appears on the face of the within Note in every particular, without
        alteration, enlargement or any change whatever. Such signature must be
        guaranteed by an “eligible guarantor institution” meeting the requirements of
        the Note Registrar, which requirements include membership or participation
        in
        STAMP or such other “signature guarantee program” as may be determined by the
        Note Registrar in addition to, or in substitution for, STAMP, all in accordance
        with the Securities Exchange Act of 1934, as amended.

       

      

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

      UNLESS
        THIS NOTE IS PRESENTED BY AN AUTHORIZED REPRESENTATIVE OF THE DEPOSITORY
        TRUST
        COMPANY, A NEW YORK CORPORATION (“DTC”), TO THE ISSUER OR ITS AGENT FOR
        REGISTRATION OF TRANSFER, EXCHANGE OR PAYMENT, AND ANY NOTE ISSUED IS REGISTERED
        IN THE NAME OF CEDE & CO. OR IN SUCH OTHER NAME AS IS REQUESTED BY AN
        AUTHORIZED REPRESENTATIVE OF DTC (AND ANY PAYMENT IS MADE TO CEDE & CO. OR
        TO SUCH OTHER ENTITY AS IS REQUESTED BY AN AUTHORIZED REPRESENTATIVE OF DTC),
        ANY TRANSFER, PLEDGE OR OTHER USE HEREOF FOR VALUE OR OTHERWISE BY OR TO
        ANY
        PERSON IS WRONGFUL INASMUCH AS THE REGISTERED OWNER HEREOF, CEDE & CO., HAS
        AN INTEREST HEREIN.

       

      THIS
        NOTE
        DOES NOT EVIDENCE AN OBLIGATION OF OR AN INTEREST IN, AND IS NOT GUARANTEED
        BY,
        THE ISSUER, THE DEPOSITOR, THE MASTER SERVICER, THE SELLER, THE SERVICER,
        THE
        INDENTURE TRUSTEE, THE OWNER TRUSTEE, THE TRUST ADMINISTRATOR, OR ANY AFFILIATE
        OF ANY OF THEM AND IS NOT INSURED OR GUARANTEED BY ANY GOVERNMENTAL AGENCY
        OR
        PRIVATE INSURER.

       

      THE
        PRINCIPAL OF THIS NOTE IS PAYABLE IN INSTALLMENTS AS SET FORTH HEREIN.
        ACCORDINGLY, THE OUTSTANDING PRINCIPAL AMOUNT OF THIS NOTE AT ANY TIME MAY
        BE
        LESS THAN THE AMOUNT SHOWN ON THE FACE HEREOF.

       

      THIS
        NOTE
        IS SUBORDINATE IN RIGHT OF PAYMENT AS PROVIDED IN THE INDENTURE REFERRED
        TO
        HEREIN.

       

      EACH
        PURCHASER OF THIS NOTE WILL BE DEEMED TO HAVE MADE THE REPRESENTATIONS AND
        AGREEMENTS SET FORTH IN SECTION 2.03 OF THE INDENTURE. ANY TRANSFER IN VIOLATION
        OF THE FOREGOING WILL BE OF NO FORCE AND EFFECT, WILL BE VOID AB
        INITIO,
        AND
        WILL NOT OPERATE TO TRANSFER ANY RIGHTS TO THE TRANSFEREE, NOTWITHSTANDING
        ANY
        INSTRUCTIONS TO THE CONTRARY TO THE ISSUER, THE INDENTURE TRUSTEE OR ANY
        INTERMEDIARY.

       

      THIS
        NOTE
        MAY NOT BE ACQUIRED BY A TRANSFEREE FOR, OR ON BEHALF OF AN EMPLOYEE BENEFIT
        PLAN OR OTHER RETIREMENT ARRANGEMENT THAT IS SUBJECT TO THE EMPLOYEE RETIREMENT
        INCOME SECURITY ACT OF 1974, AS AMENDED (“ERISA”) OR SECTION 4975 OF THE
        INTERNAL REVENUE CODE OF 1986, AS AMENDED (THE “CODE”) OR TO ANY SUBSTANTIALLY
        SIMILAR LAW (“SIMILAR LAW”) OR ANY ENTITY DEEMED TO HOLD THE PLAN ASSETS OF THE
        FOREGOING (“BENEFIT PLAN”), UNLESS THE TRANSFEREE REPRESENTS AND WARRANTS THAT
        THE ACQUISITION AND HOLDING OF THIS NOTE: (X) WILL NOT RESULT IN A NON-EXEMPT
        PROHIBITED TRANSACTION UNDER SECTION 406 OF ERISA OR SECTION 4975 OF THE
        CODE
        WHICH IS NOT COVERED BY PROHIBITED TRANSACTION CLASS EXEMPTION (“PTCE”) 84-14,
        PTCE 90-1, PTCE 91-38, PTCE 95-60, PTCE 96-23 OR SOME OTHER APPLICABLE EXEMPTION
        AND (Y) WILL NOT RESULT IN A NON-EXEMPT VIOLATION OF ANY SUBSTANTIALLY SIMILAR
        APPLICABLE LAW. EACH INVESTOR IN THIS NOTE WILL BE DEEMED TO MAKE THE FOREGOING
        REPRESENTATIONS AND WILL FURTHER BE DEEMED TO REPRESENT, WARRANT AND COVENANT
        THAT IT WILL NOT SELL, PLEDGE OR OTHERWISE TRANSFER THIS NOTE IN VIOLATION
        OF
        THE FOREGOING.

       

      

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

      AAMES
        MORTGAGE INVESTMENT TRUST 2006-1

       

      

       

      CLASS
        M-10 NOTES

       

      

       

      
        	
                Aggregate
                  Class Principal Amount of

              	
                Class
                  Principal Amount

              
	
                the
                  Class M-10 Notes: $3,058,000.00

              	
                of
                  this Note: $3,058,000.00

                 

              
	
                Interest
                  Rate: Adjustable

              	
                Cut-off
                  Date: April 1, 2006

                 

              
	
                Number:
                  1

              	
                CUSIP
                  No.: 0252G AP 4

              

      

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

      AAMES
        MORTGAGE INVESTMENT TRUST 2006-1, a statutory trust organized and existing
        under
        the laws of the State of Delaware (herein referred to as the “Issuer”), for
        value received, hereby promises to pay to CEDE & CO., or registered assigns,
        the principal sum of THREE MILLION FIFTY EIGHT THOUSAND DOLLARS
        AND NO/100 ($3,058,000.00)
        payable on each Payment Date in an amount equal to the result obtained by
        multiplying (A) the Percentage Interest evidenced by this Note (obtained
        by
        dividing the initial Class Principal Amount of this Note by the initial Class
        Principal Amount of all Class M-10 Notes, both as specified above) and (B)
        the
        amount payable on such Payment Date in respect of principal of the Class
        M-10
        Notes pursuant to the Indenture dated as of April 1, 2006 (as amended and
        supplemented from time to time, the “Indenture”), among the Issuer, Wells Fargo
        Bank, N.A., as Trust Administrator (the “Trust Administrator”) and Deutsche Bank
        National Trust Company, as Indenture Trustee (the “Indenture Trustee”);
provided,
        however,
        that
        the entire unpaid principal amount of this Note shall be due and payable
        on the
        Payment Date occurring in April 2036 (the “Maturity Date”) or as otherwise
        specified in the Indenture. Capitalized terms used but not defined herein
        have
        the meanings assigned to such terms in the Indenture or the Transfer and
        Servicing Agreement dated as of April 1, 2006 (as amended and supplemented
        from
        time to time, the “Transfer and Servicing Agreement”), by and among the Issuer,
        Financial Asset Securities Corp., as depositor (the “Depositor”), Wells Fargo
        Bank, N.A., as trust administrator (in such capacity, the “Trust Administrator”)
        and as master servicer (in such capacity, the “Master Servicer”), Aames Funding
        Corporation, as servicer, Aames Investment Corporation, as seller, and the
        Indenture Trustee, which agreements also contain rules as to construction
        that
        shall be applicable herein.

       

      The
        Issuer will pay interest on this Note at a per annum rate equal to the
        applicable Interest Rate, on the principal amount of this Note outstanding
        on
        the immediately preceding Payment Date (after giving effect to all payments
        of
        principal made on such preceding Payment Date) on each Payment Date until
        the
        principal of this Note is paid or made available for payment in
        full.

       

      Payments
        on this Note will be made on the 25th day of each month or, if such a day
        is not
        a Business Day, then on the next succeeding Business Day, commencing in May
        2006
        (each, a “Payment Date”), to the Person in whose name this Note is registered at
        the close of business on the Business Day immediately preceding such Payment
        Date (the “Record Date”), in an amount equal to the product of the Percentage
        Interest evidenced by this Note and the amount, if any, required to be
        distributed to all the Notes of the Class represented by this Note. All sums
        distributable on this Note are payable in 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. Such principal of and interest on this Note
        shall
        be paid in the manner specified on the reverse hereof.

       

      All
        payments made by the Issuer with respect to this Note shall be applied as
        provided in the Transfer and Servicing Agreement.

       

      Reference
        is made to the further provisions of this Note set forth on the reverse hereof,
        which shall have the same effect as though fully set forth on the face of
        this
        Note. 

       

      Unless
        the certificate of authentication hereon has been executed by the Trust
        Administrator whose name appears below by manual signature, this Note shall
        not
        be entitled to any benefit under the Indenture referred to on the reverse
        hereof, or be valid or obligatory for any purpose. 

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

      IN
        WITNESS WHEREOF, the Issuer has caused this instrument to be signed, manually
        or
        in facsimile, by its Authorized Officer, as of the date set forth below.
        

       

      AAMES
        MORTGAGE INVESTMENT TRUST 2006-1

       

      By: WILMINGTON
        TRUST COMPANY, 

      not
        in
        its individual capacity but solely as Owner Trustee 

      under
        the
        Trust Agreement

       

      By:
        ________________________________________

      Authorized
        Signatory 

       

      Dated:
        ____________________, 2006

       

      TRUST
        ADMINISTRATOR’S CERTIFICATE OF AUTHENTICATION

       

      This
        is
        one of the Notes designated above and referred to in the within-mentioned
        Indenture. 

       

      WELLS
        FARGO BANK, N.A.,

      not
        in
        its individual capacity but solely as Trust Administrator,

       

      By:
        ________________________________________

      Authorized
        Signatory 

       

      Dated:
        ___________________, 2006

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

      AAMES
        MORTGAGE INVESTMENT TRUST 2006-1

       

      This
        Note
        is one of a duly authorized issue of Notes of the Issuer, all issued under
        the
        Indenture, to which Indenture and all indentures supplemental thereto reference
        is hereby made for a statement of the respective rights and obligations
        thereunder of the Issuer, the Indenture Trustee and the Holders of the Notes.
        To
        the extent that any provision of this Note contradicts or is inconsistent
        with
        the provisions of the Indenture, the provisions of the Indenture shall control
        and supersede such contradictory or inconsistent provision herein. This Note
        is
        subject to all terms of the Indenture. 

       

      The
        Class
        A-1, Class A-2, Class A-3 and Class A-4 Notes (the “Senior Notes”) are, and will
        be, equally and ratably secured by the collateral pledged as security therefor
        as provided in the Indenture. The rights of the Holders of the Class M-1,
        Class
        M-2, Class M-3, Class M-4, Class M-5, Class M-6, Class M-7, Class M-8, Class
        M-9, Class M-10 and Class M-11 Notes (the “Subordinate Notes”) to receive
        payments or distribution of interest and principal are, and will be, subordinate
        to the rights of the Holders of the Senior Notes to receive payments of interest
        and principal, respectively, as provided in the Indenture.

       

      Payments
        to each Noteholder shall be made upon written request made to the Note Registrar
        and Paying Agent at least five Business Days prior to the related Record
        Date by
        the Holder of a Note having an initial Note Principal Amount of not less
        than
        $2,500,000, by wire transfer in immediately available funds to an account
        specified in writing by such Noteholder. The final payment in retirement
        of this
        Note shall be made only upon surrender of this Note to the Note Registrar
        and
        Paying Agent at the office thereof specified in the notice to Noteholders
        of
        such final payment mailed prior to the Payment Date on which the final payment
        is expected to be made to the Holder thereof.

       

      As
        provided in the Indenture and subject to certain limitations set forth therein,
        the transfer of this Note may be registered by the Note Registrar upon surrender
        of this Note for registration of transfer at the office or agency designated
        by
        the Issuer pursuant to the Indenture, duly endorsed by, or accompanied by
        a
        written instrument of transfer in form satisfactory to the Note Registrar
        duly
        executed by, the Holder hereof or such Holder’s attorney duly authorized in
        writing, with such signature guaranteed by an “eligible guarantor institution”
meeting the requirements of the Note Registrar, which requirements include
        membership or participation in the Securities Transfer Agent’s Medallion Program
        (“STAMP”) or such other “signature guarantee program” as may be determined by
        the Note Registrar in addition to, or in substitution for, STAMP, all in
        accordance with the Securities Exchange Act of 1934, as amended, and thereupon
        one or more new Notes of authorized denominations and in the same aggregate
        principal amount will be issued to the designated transferee or transferees.
        No
        service charge will be charged for any registration of transfer or exchange
        of
        this Note, but the transferor may be required to pay a sum sufficient to
        cover
        any tax or other governmental charge that may be imposed in connection with
        any
        such registration of transfer or exchange. 

       

      The
        Notes
        will be issued in minimum denominations of $25,000 in original principal
        amount
        and integral multiples of $1 in excess thereof, provided, that the initial
        sale
        of any Notes shall be in increments of no less than $100,000.

       

      The
        Notes
        are subject to optional redemption in accordance with the Indenture and the
        Transfer and Servicing Agreement. 

       

      Each
        Noteholder and Note Owner, by acceptance of a Note or, in the case of a Note
        Owner, a beneficial interest in a Note, covenants and agrees that no recourse
        may be taken, directly or indirectly, with respect to the obligations of
        the
        Issuer, the Owner Trustee or the Indenture Trustee on the Notes or under
        the
        Indenture or any certificate or other writing delivered in connection therewith,
        against (i) the Indenture Trustee, or the Owner Trustee in their respective
        individual capacities, (ii) any owner of a beneficial interest in the Issuer
        or
        (iii) any partner, owner, beneficiary, agent, officer, director or employee
        of
        the Indenture Trustee or the Owner Trustee in its individual capacity, any
        holder of a beneficial interest in the Issuer, the Owner Trustee or the
        Indenture Trustee or of any successor or assign of the Indenture Trustee
        or the
        Owner Trustee in its individual capacity, except as any such Person may have
        expressly agreed and except that any such partner, owner or beneficiary shall
        be
        fully liable, to the extent provided by applicable law, for any unpaid
        consideration for stock, unpaid capital contribution or failure to pay any
        installment or call owing to such entity.

       

      Each
        Noteholder and Note Owner, by acceptance of a Note or, in the case of a Note
        Owner, a beneficial interest in a Note, covenants and agrees by accepting
        the
        benefits of the Indenture that such Noteholder or Note Owner will not at
        any
        time institute against the Depositor or the Issuer, or join in any institution
        against the Depositor or the Issuer of, any bankruptcy, reorganization,
        arrangement, insolvency or liquidation proceedings under any United States
        federal or state bankruptcy or similar law in connection with any obligations
        relating to the Notes, the Indenture or the other Operative Agreements.

       

      Each
        Noteholder and Note Owner, by acceptance of a Note or, in the case of a Note
        Owner, a beneficial interest in a Note, consents to and agrees to be bound
        by
        the terms and conditions of the Indenture.

       

      The
        Issuer has entered into the Indenture and this Note is issued with the intention
        that, for federal, state and local income, single business and franchise
        tax
        purposes, the Notes will qualify as indebtedness of the Issuer secured by
        the
        Collateral. Each Noteholder, by acceptance of a Note (and each Note Owner
        by
        acceptance of a beneficial interest in a Note), agrees to treat the Notes
        for
        all federal, state and local income tax purposes as indebtedness (except
        that
        any Note held by a person that, for federal income tax purposes, owns or
        is
        treated as owning a 100% Percentage Interest of the Ownership Certificate
        shall
        not be treated as outstanding indebtedness). 

       

      Prior
        to
        the due presentment for registration of transfer of this Note, the Issuer,
        the
        Indenture Trustee, the Trust Administrator, the Note Registrar, the Paying
        Agent
        and any agent of the Issuer, the Indenture Trustee, the Trust Administrator,
        the
        Note Registrar or the Paying Agent may treat the Person in whose name this
        Note
        (as of the day of determination or as of such other date as may be specified
        in
        the Indenture) is registered as the owner hereof for all purposes, whether
        or
        not this Note be overdue, and none of the Issuer, the Indenture Trustee,
        the
        Note Registrar, the Paying Agent or any such agent shall be affected by notice
        to the contrary. 

       

      The
        Indenture permits, with certain exceptions as therein provided, the amendment
        thereof by supplemental indenture and the modification of the rights and
        obligations of the Issuer and the rights of the Holders of the Notes under
        the
        Indenture at any time by the Depositor, the Issuer and the Indenture Trustee
        with the consent of the Holders of not less than 66-2/3% of the Outstanding
        Balance of the Notes for the purpose of adding any provisions to or changing
        in
        any manner or eliminating any of the provisions of the Indenture or of modifying
        in any manner the rights of the Noteholders. Any such consent or waiver by
        the
        Holder of this Note (or any one or more Predecessor Notes) shall be conclusive
        and binding upon such Holder and upon all future Holders of this Note and
        of any
        Note issued upon the registration of transfer hereof or in exchange hereof
        or in
        lieu hereof whether or not notation of such consent or waiver is made upon
        this
        Note. The Indenture also permits the amendment thereof, in certain limited
        circumstances, or the waiver of certain terms and conditions set forth in
        the
        Indenture, without the consent of Holders of the Notes issued thereunder.
        

       

      The
        term
“Issuer” as used in this Note includes any successor to the Issuer under the
        Indenture. 

       

      The
        Notes
        are issuable only in registered form in denominations as provided in the
        Indenture, subject to certain limitations therein set forth. 

       

      THIS
        NOTE
        AND THE INDENTURE SHALL BE GOVERNED BY AND CONSTRUED IN ACCORDANCE WITH THE
        LAWS
        OF THE STATE OF NEW YORK, WITHOUT REFERENCE TO ITS CONFLICT OF LAW PROVISIONS
        (OTHER THAN SECTION 5-1401 OF THE GENERAL OBLIGATIONS LAW), AND THE OBLIGATIONS,
        RIGHTS AND REMEDIES OF THE PARTIES HEREUNDER SHALL BE DETERMINED IN ACCORDANCE
        WITH SUCH LAWS. 

       

      No
        reference herein to the Indenture and no provision of this Note or of the
        Indenture shall alter or impair the obligation of the Issuer, which is absolute
        and unconditional, to pay the principal of and interest on this Note at the
        times, place and rate, and in the coin or currency herein prescribed.

       

      Anything
        herein to the contrary notwithstanding, except as expressly provided in the
        Operative Agreements, none of the Issuer in its individual capacity, the
        Owner
        Trustee in its individual capacity, the Indenture Trustee in its individual
        capacity, any owner of a beneficial interest in the Issuer, the Trust
        Administrator in its individual capacity, the Note Registrar, the Paying
        Agent
        or any of their respective partners, beneficiaries, agents, officers, directors,
        employees or successors or assigns shall be personally liable for, nor shall
        recourse be had to any of them for, the payment of principal of or interest
        on
        this Note or performance of, or omission to perform, any of the covenants,
        obligations or indemnifications contained in the Indenture. The Holder of
        this
        Note by its acceptance hereof agrees that, except as expressly provided in
        the
        Operative Agreements, in the case of an Event of Default under the Indenture,
        the Holder shall have no claim against any of the foregoing for any deficiency,
        loss or claim therefrom; provided,
        however,
        that
        nothing contained herein shall be taken to prevent recourse to, and enforcement
        against, the assets of the Issuer for any and all liabilities, obligations
        and
        undertakings contained in the Indenture or in this Note. 

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

      ASSIGNMENT

       

      Social
        Security or taxpayer I.D. or other identifying number of assignee:
        ________________________

       

      FOR
        VALUE
        RECEIVED, the undersigned hereby sells, assigns and transfers unto:

       

      
        	 	 	 

      

      (name
        and
        address of assignee)

       

      the
        within Note and all rights thereunder, and hereby irrevocably constitutes
        and
        appoints ________________________, attorney, to transfer said Note on the
        books
        kept for registration thereof, with full power of substitution in the premises.
        

       

      Dated:__________________________*/

       

      Signature
        Guaranteed: 

       

      ________________________________*/
        

       

      

       

      */
        NOTICE:
        The signature to this assignment must correspond with the name of the registered
        owner as it appears on the face of the within Note in every particular, without
        alteration, enlargement or any change whatever. Such signature must be
        guaranteed by an “eligible guarantor institution” meeting the requirements of
        the Note Registrar, which requirements include membership or participation
        in
        STAMP or such other “signature guarantee program” as may be determined by the
        Note Registrar in addition to, or in substitution for, STAMP, all in accordance
        with the Securities Exchange Act of 1934, as amended.

       

      

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

      UNLESS
        THIS NOTE IS PRESENTED BY AN AUTHORIZED REPRESENTATIVE OF THE DEPOSITORY
        TRUST
        COMPANY, A NEW YORK CORPORATION (“DTC”), TO THE ISSUER OR ITS AGENT FOR
        REGISTRATION OF TRANSFER, EXCHANGE OR PAYMENT, AND ANY NOTE ISSUED IS REGISTERED
        IN THE NAME OF CEDE & CO. OR IN SUCH OTHER NAME AS IS REQUESTED BY AN
        AUTHORIZED REPRESENTATIVE OF DTC (AND ANY PAYMENT IS MADE TO CEDE & CO. OR
        TO SUCH OTHER ENTITY AS IS REQUESTED BY AN AUTHORIZED REPRESENTATIVE OF DTC),
        ANY TRANSFER, PLEDGE OR OTHER USE HEREOF FOR VALUE OR OTHERWISE BY OR TO
        ANY
        PERSON IS WRONGFUL INASMUCH AS THE REGISTERED OWNER HEREOF, CEDE & CO., HAS
        AN INTEREST HEREIN.

       

      THIS
        NOTE
        DOES NOT EVIDENCE AN OBLIGATION OF OR AN INTEREST IN, AND IS NOT GUARANTEED
        BY,
        THE ISSUER, THE DEPOSITOR, THE MASTER SERVICER, THE SELLER, THE SERVICER,
        THE
        INDENTURE TRUSTEE, THE OWNER TRUSTEE, THE TRUST ADMINISTRATOR, OR ANY AFFILIATE
        OF ANY OF THEM AND IS NOT INSURED OR GUARANTEED BY ANY GOVERNMENTAL AGENCY
        OR
        PRIVATE INSURER.

       

      THE
        PRINCIPAL OF THIS NOTE IS PAYABLE IN INSTALLMENTS AS SET FORTH HEREIN.
        ACCORDINGLY, THE OUTSTANDING PRINCIPAL AMOUNT OF THIS NOTE AT ANY TIME MAY
        BE
        LESS THAN THE AMOUNT SHOWN ON THE FACE HEREOF.

       

      THIS
        NOTE
        IS SUBORDINATE IN RIGHT OF PAYMENT AS PROVIDED IN THE INDENTURE REFERRED
        TO
        HEREIN.

       

      EACH
        PURCHASER OF THIS NOTE WILL BE DEEMED TO HAVE MADE THE REPRESENTATIONS AND
        AGREEMENTS SET FORTH IN SECTION 2.03 OF THE INDENTURE. ANY TRANSFER IN VIOLATION
        OF THE FOREGOING WILL BE OF NO FORCE AND EFFECT, WILL BE VOID AB
        INITIO,
        AND
        WILL NOT OPERATE TO TRANSFER ANY RIGHTS TO THE TRANSFEREE, NOTWITHSTANDING
        ANY
        INSTRUCTIONS TO THE CONTRARY TO THE ISSUER, THE INDENTURE TRUSTEE OR ANY
        INTERMEDIARY.

       

      THIS
        NOTE
        MAY NOT BE ACQUIRED BY A TRANSFEREE FOR, OR ON BEHALF OF AN EMPLOYEE BENEFIT
        PLAN OR OTHER RETIREMENT ARRANGEMENT THAT IS SUBJECT TO THE EMPLOYEE RETIREMENT
        INCOME SECURITY ACT OF 1974, AS AMENDED (“ERISA”) OR SECTION 4975 OF THE
        INTERNAL REVENUE CODE OF 1986, AS AMENDED (THE “CODE”) OR TO ANY SUBSTANTIALLY
        SIMILAR LAW (“SIMILAR LAW”) OR ANY ENTITY DEEMED TO HOLD THE PLAN ASSETS OF THE
        FOREGOING (“BENEFIT PLAN”), UNLESS THE TRANSFEREE REPRESENTS AND WARRANTS THAT
        THE ACQUISITION AND HOLDING OF THIS NOTE: (X) WILL NOT RESULT IN A NON-EXEMPT
        PROHIBITED TRANSACTION UNDER SECTION 406 OF ERISA OR SECTION 4975 OF THE
        CODE
        WHICH IS NOT COVERED BY PROHIBITED TRANSACTION CLASS EXEMPTION (“PTCE”) 84-14,
        PTCE 90-1, PTCE 91-38, PTCE 95-60, PTCE 96-23 OR SOME OTHER APPLICABLE EXEMPTION
        AND (Y) WILL NOT RESULT IN A NON-EXEMPT VIOLATION OF ANY SUBSTANTIALLY SIMILAR
        APPLICABLE LAW. EACH INVESTOR IN THIS NOTE WILL BE DEEMED TO MAKE THE FOREGOING
        REPRESENTATIONS AND WILL FURTHER BE DEEMED TO REPRESENT, WARRANT AND COVENANT
        THAT IT WILL NOT SELL, PLEDGE OR OTHERWISE TRANSFER THIS NOTE IN VIOLATION
        OF
        THE FOREGOING.

       

      

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

      AAMES
        MORTGAGE INVESTMENT TRUST 2006-1

       

      

       

      CLASS
        M-11 NOTES

       

      

       

      
        	
                Aggregate
                  Class Principal Amount of

              	
                Class
                  Principal Amount

              
	
                the
                  Class M-11 Notes: $6,115,000.00

              	
                of
                  this Note: $6,115,000.00

                 

              
	
                Interest
                  Rate: Adjustable

              	
                Cut-off
                  Date: April 1, 2006

                 

              
	
                Number:
                  1

              	
                CUSIP
                  No.: 00252G AQ 2

              

      

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

      AAMES
        MORTGAGE INVESTMENT TRUST 2006-1, a statutory trust organized and existing
        under
        the laws of the State of Delaware (herein referred to as the “Issuer”), for
        value received, hereby promises to pay to CEDE & CO., or registered assigns,
        the principal sum of SIX MILLION ONE HUNDRED FIFTEEN THOUSAND DOLLARS AND
        NO/100
        ($6,115,000.00)
        payable on each Payment Date in an amount equal to the result obtained by
        multiplying (A) the Percentage Interest evidenced by this Note (obtained
        by
        dividing the initial Class Principal Amount of this Note by the initial Class
        Principal Amount of all Class M-11 Notes, both as specified above) and (B)
        the
        amount payable on such Payment Date in respect of principal of the Class
        M-11
        Notes pursuant to the Indenture dated as of April 1, 2006 (as amended and
        supplemented from time to time, the “Indenture”), among the Issuer, Wells Fargo
        Bank, N.A., as Trust Administrator (the “Trust Administrator”) and Deutsche Bank
        National Trust Company, as Indenture Trustee (the “Indenture Trustee”);
provided,
        however,
        that
        the entire unpaid principal amount of this Note shall be due and payable
        on the
        Payment Date occurring in April 2036 (the “Maturity Date”) or as otherwise
        specified in the Indenture. Capitalized terms used but not defined herein
        have
        the meanings assigned to such terms in the Indenture or the Transfer and
        Servicing Agreement dated as of April 1, 2006 (as amended and supplemented
        from
        time to time, the “Transfer and Servicing Agreement”), by and among the Issuer,
        Financial Asset Securities Corp., as depositor (the “Depositor”), Wells Fargo
        Bank, N.A., as trust administrator (in such capacity, the “Trust Administrator”)
        and as master servicer (in such capacity, the “Master Servicer”), Aames Funding
        Corporation, as servicer, Aames Investment Corporation, as seller, and the
        Indenture Trustee, which agreements also contain rules as to construction
        that
        shall be applicable herein.

       

      The
        Issuer will pay interest on this Note at a per annum rate equal to the
        applicable Interest Rate, on the principal amount of this Note outstanding
        on
        the immediately preceding Payment Date (after giving effect to all payments
        of
        principal made on such preceding Payment Date) on each Payment Date until
        the
        principal of this Note is paid or made available for payment in
        full.

       

      Payments
        on this Note will be made on the 25th day of each month or, if such a day
        is not
        a Business Day, then on the next succeeding Business Day, commencing in May
        2006
        (each, a “Payment Date”), to the Person in whose name this Note is registered at
        the close of business on the Business Day immediately preceding such Payment
        Date (the “Record Date”), in an amount equal to the product of the Percentage
        Interest evidenced by this Note and the amount, if any, required to be
        distributed to all the Notes of the Class represented by this Note. All sums
        distributable on this Note are payable in 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. Such principal of and interest on this Note
        shall
        be paid in the manner specified on the reverse hereof.

       

      All
        payments made by the Issuer with respect to this Note shall be applied as
        provided in the Transfer and Servicing Agreement.

       

      Reference
        is made to the further provisions of this Note set forth on the reverse hereof,
        which shall have the same effect as though fully set forth on the face of
        this
        Note. 

       

      Unless
        the certificate of authentication hereon has been executed by the Trust
        Administrator whose name appears below by manual signature, this Note shall
        not
        be entitled to any benefit under the Indenture referred to on the reverse
        hereof, or be valid or obligatory for any purpose. 

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

      IN
        WITNESS WHEREOF, the Issuer has caused this instrument to be signed, manually
        or
        in facsimile, by its Authorized Officer, as of the date set forth below.
        

       

      AAMES
        MORTGAGE INVESTMENT TRUST 2006-1

       

      By: WILMINGTON
        TRUST COMPANY, 

      not
        in
        its individual capacity but solely as Owner Trustee 

      under
        the
        Trust Agreement

       

      By:
        ________________________________________

      Authorized
        Signatory 

       

      Dated:
        ____________________, 2006

       

      TRUST
        ADMINISTRATOR’S CERTIFICATE OF AUTHENTICATION

       

      This
        is
        one of the Notes designated above and referred to in the within-mentioned
        Indenture. 

       

      WELLS
        FARGO BANK, N.A.,

      not
        in
        its individual capacity but solely as Trust Administrator,

       

      By:
        ________________________________________

      Authorized
        Signatory 

       

      Dated:
        ___________________, 2006

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

      AAMES
        MORTGAGE INVESTMENT TRUST 2006-1

       

      This
        Note
        is one of a duly authorized issue of Notes of the Issuer, all issued under
        the
        Indenture, to which Indenture and all indentures supplemental thereto reference
        is hereby made for a statement of the respective rights and obligations
        thereunder of the Issuer, the Indenture Trustee and the Holders of the Notes.
        To
        the extent that any provision of this Note contradicts or is inconsistent
        with
        the provisions of the Indenture, the provisions of the Indenture shall control
        and supersede such contradictory or inconsistent provision herein. This Note
        is
        subject to all terms of the Indenture. 

       

      The
        Class
        A-1, Class A-2, Class A-3 and Class A-4 Notes (the “Senior Notes”) are, and will
        be, equally and ratably secured by the collateral pledged as security therefor
        as provided in the Indenture. The rights of the Holders of the Class M-1,
        Class
        M-2, Class M-3, Class M-4, Class M-5, Class M-6, Class M-7, Class M-8, Class
        M-9, Class M-10 and Class M-11 Notes (the “Subordinate Notes”) to receive
        payments or distribution of interest and principal are, and will be, subordinate
        to the rights of the Holders of the Senior Notes to receive payments of interest
        and principal, respectively, as provided in the Indenture.

       

      Payments
        to each Noteholder shall be made upon written request made to the Note Registrar
        and Paying Agent at least five Business Days prior to the related Record
        Date by
        the Holder of a Note having an initial Note Principal Amount of not less
        than
        $2,500,000, by wire transfer in immediately available funds to an account
        specified in writing by such Noteholder. The final payment in retirement
        of this
        Note shall be made only upon surrender of this Note to the Note Registrar
        and
        Paying Agent at the office thereof specified in the notice to Noteholders
        of
        such final payment mailed prior to the Payment Date on which the final payment
        is expected to be made to the Holder thereof.

       

      As
        provided in the Indenture and subject to certain limitations set forth therein,
        the transfer of this Note may be registered by the Note Registrar upon surrender
        of this Note for registration of transfer at the office or agency designated
        by
        the Issuer pursuant to the Indenture, duly endorsed by, or accompanied by
        a
        written instrument of transfer in form satisfactory to the Note Registrar
        duly
        executed by, the Holder hereof or such Holder’s attorney duly authorized in
        writing, with such signature guaranteed by an “eligible guarantor institution”
meeting the requirements of the Note Registrar, which requirements include
        membership or participation in the Securities Transfer Agent’s Medallion Program
        (“STAMP”) or such other “signature guarantee program” as may be determined by
        the Note Registrar in addition to, or in substitution for, STAMP, all in
        accordance with the Securities Exchange Act of 1934, as amended, and thereupon
        one or more new Notes of authorized denominations and in the same aggregate
        principal amount will be issued to the designated transferee or transferees.
        No
        service charge will be charged for any registration of transfer or exchange
        of
        this Note, but the transferor may be required to pay a sum sufficient to
        cover
        any tax or other governmental charge that may be imposed in connection with
        any
        such registration of transfer or exchange. 

       

      The
        Notes
        will be issued in minimum denominations of $25,000 in original principal
        amount
        and integral multiples of $1 in excess thereof, provided, that the initial
        sale
        of any Notes shall be in increments of no less than $100,000.

       

      The
        Notes
        are subject to optional redemption in accordance with the Indenture and the
        Transfer and Servicing Agreement. 

       

      Each
        Noteholder and Note Owner, by acceptance of a Note or, in the case of a Note
        Owner, a beneficial interest in a Note, covenants and agrees that no recourse
        may be taken, directly or indirectly, with respect to the obligations of
        the
        Issuer, the Owner Trustee or the Indenture Trustee on the Notes or under
        the
        Indenture or any certificate or other writing delivered in connection therewith,
        against (i) the Indenture Trustee, or the Owner Trustee in their respective
        individual capacities, (ii) any owner of a beneficial interest in the Issuer
        or
        (iii) any partner, owner, beneficiary, agent, officer, director or employee
        of
        the Indenture Trustee or the Owner Trustee in its individual capacity, any
        holder of a beneficial interest in the Issuer, the Owner Trustee or the
        Indenture Trustee or of any successor or assign of the Indenture Trustee
        or the
        Owner Trustee in its individual capacity, except as any such Person may have
        expressly agreed and except that any such partner, owner or beneficiary shall
        be
        fully liable, to the extent provided by applicable law, for any unpaid
        consideration for stock, unpaid capital contribution or failure to pay any
        installment or call owing to such entity.

       

      Each
        Noteholder and Note Owner, by acceptance of a Note or, in the case of a Note
        Owner, a beneficial interest in a Note, covenants and agrees by accepting
        the
        benefits of the Indenture that such Noteholder or Note Owner will not at
        any
        time institute against the Depositor or the Issuer, or join in any institution
        against the Depositor or the Issuer of, any bankruptcy, reorganization,
        arrangement, insolvency or liquidation proceedings under any United States
        federal or state bankruptcy or similar law in connection with any obligations
        relating to the Notes, the Indenture or the other Operative Agreements.

       

      Each
        Noteholder and Note Owner, by acceptance of a Note or, in the case of a Note
        Owner, a beneficial interest in a Note, consents to and agrees to be bound
        by
        the terms and conditions of the Indenture.

       

      The
        Issuer has entered into the Indenture and this Note is issued with the intention
        that, for federal, state and local income, single business and franchise
        tax
        purposes, the Notes will qualify as indebtedness of the Issuer secured by
        the
        Collateral. Each Noteholder, by acceptance of a Note (and each Note Owner
        by
        acceptance of a beneficial interest in a Note), agrees to treat the Notes
        for
        all federal, state and local income tax purposes as indebtedness (except
        that
        any Note held by a person that, for federal income tax purposes, owns or
        is
        treated as owning a 100% Percentage Interest of the Ownership Certificate
        shall
        not be treated as outstanding indebtedness). 

       

      Prior
        to
        the due presentment for registration of transfer of this Note, the Issuer,
        the
        Indenture Trustee, the Trust Administrator, the Note Registrar, the Paying
        Agent
        and any agent of the Issuer, the Indenture Trustee, the Trust Administrator,
        the
        Note Registrar or the Paying Agent may treat the Person in whose name this
        Note
        (as of the day of determination or as of such other date as may be specified
        in
        the Indenture) is registered as the owner hereof for all purposes, whether
        or
        not this Note be overdue, and none of the Issuer, the Indenture Trustee,
        the
        Note Registrar, the Paying Agent or any such agent shall be affected by notice
        to the contrary. 

       

      The
        Indenture permits, with certain exceptions as therein provided, the amendment
        thereof by supplemental indenture and the modification of the rights and
        obligations of the Issuer and the rights of the Holders of the Notes under
        the
        Indenture at any time by the Depositor, the Issuer and the Indenture Trustee
        with the consent of the Holders of not less than 66-2/3% of the Outstanding
        Balance of the Notes for the purpose of adding any provisions to or changing
        in
        any manner or eliminating any of the provisions of the Indenture or of modifying
        in any manner the rights of the Noteholders. Any such consent or waiver by
        the
        Holder of this Note (or any one or more Predecessor Notes) shall be conclusive
        and binding upon such Holder and upon all future Holders of this Note and
        of any
        Note issued upon the registration of transfer hereof or in exchange hereof
        or in
        lieu hereof whether or not notation of such consent or waiver is made upon
        this
        Note. The Indenture also permits the amendment thereof, in certain limited
        circumstances, or the waiver of certain terms and conditions set forth in
        the
        Indenture, without the consent of Holders of the Notes issued thereunder.
        

       

      The
        term
“Issuer” as used in this Note includes any successor to the Issuer under the
        Indenture. 

       

      The
        Notes
        are issuable only in registered form in denominations as provided in the
        Indenture, subject to certain limitations therein set forth. 

       

      THIS
        NOTE
        AND THE INDENTURE SHALL BE GOVERNED BY AND CONSTRUED IN ACCORDANCE WITH THE
        LAWS
        OF THE STATE OF NEW YORK, WITHOUT REFERENCE TO ITS CONFLICT OF LAW PROVISIONS
        (OTHER THAN SECTION 5-1401 OF THE GENERAL OBLIGATIONS LAW), AND THE OBLIGATIONS,
        RIGHTS AND REMEDIES OF THE PARTIES HEREUNDER SHALL BE DETERMINED IN ACCORDANCE
        WITH SUCH LAWS. 

       

      No
        reference herein to the Indenture and no provision of this Note or of the
        Indenture shall alter or impair the obligation of the Issuer, which is absolute
        and unconditional, to pay the principal of and interest on this Note at the
        times, place and rate, and in the coin or currency herein prescribed.

       

      Anything
        herein to the contrary notwithstanding, except as expressly provided in the
        Operative Agreements, none of the Issuer in its individual capacity, the
        Owner
        Trustee in its individual capacity, the Indenture Trustee in its individual
        capacity, any owner of a beneficial interest in the Issuer, the Trust
        Administrator in its individual capacity, the Note Registrar, the Paying
        Agent
        or any of their respective partners, beneficiaries, agents, officers, directors,
        employees or successors or assigns shall be personally liable for, nor shall
        recourse be had to any of them for, the payment of principal of or interest
        on
        this Note or performance of, or omission to perform, any of the covenants,
        obligations or indemnifications contained in the Indenture. The Holder of
        this
        Note by its acceptance hereof agrees that, except as expressly provided in
        the
        Operative Agreements, in the case of an Event of Default under the Indenture,
        the Holder shall have no claim against any of the foregoing for any deficiency,
        loss or claim therefrom; provided,
        however,
        that
        nothing contained herein shall be taken to prevent recourse to, and enforcement
        against, the assets of the Issuer for any and all liabilities, obligations
        and
        undertakings contained in the Indenture or in this Note. 

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

      ASSIGNMENT

       

      Social
        Security or taxpayer I.D. or other identifying number of assignee:
        ________________________

       

      FOR
        VALUE
        RECEIVED, the undersigned hereby sells, assigns and transfers unto:

       

      
        	 	 	 

      

      (name
        and
        address of assignee)

       

      the
        within Note and all rights thereunder, and hereby irrevocably constitutes
        and
        appoints ________________________, attorney, to transfer said Note on the
        books
        kept for registration thereof, with full power of substitution in the premises.
        

       

      Dated:__________________________*/

       

      Signature
        Guaranteed: 

       

      ________________________________*/
        

       

      

       

      */
        NOTICE:
        The signature to this assignment must correspond with the name of the registered
        owner as it appears on the face of the within Note in every particular, without
        alteration, enlargement or any change whatever. Such signature must be
        guaranteed by an “eligible guarantor institution” meeting the requirements of
        the Note Registrar, which requirements include membership or participation
        in
        STAMP or such other “signature guarantee program” as may be determined by the
        Note Registrar in addition to, or in substitution for, STAMP, all in accordance
        with the Securities Exchange Act of 1934, as amended.

        
          
            
               

            

            
            

          

          
            
            

            
              

            

          

          
            
            

            
              

            

          

        

    

    EXHIBIT
      B

     

    FORM
      OF
      ERISA TRANSFER AFFIDAVIT

     

    ____________

    date            
      

    STATE
      OF
      NEW
      YORK                   
 )

    )
      ss.:

    COUNTY
      OF
      NEW
      YORK                 )

     

    Re:
       Aames
      Mortgage Investment Trust 2006-1

           
      Mortgage Backed Notes, Series
      2006-1                                               
 

     

    1.  
       The
      undersigned is the ______________________ of ______________________ (the
“Investor”), a [corporation duly organized] and existing under the laws of
      __________, on behalf of which he makes this affidavit.

     

    2.   
       Either
      (i) the Investor is not, and on ___________ [date of transfer] will not be,
      acquiring the Notes for, or with the assets of, an employee benefit plan or
      other retirement arrangement that is subject to Section 406 of the Employee
      Retirement Income Security Act of 1974, as amended (“ERISA”), or to Section 4975
      of the Internal Revenue Code of 1986, as amended (or to any substantially
      similar law (“Similar Law”)) or any entity deemed to hold the plan assets of the
      foregoing (a “Benefit Plan”) or (ii) the Investor’s acquisition and holding of
      the Notes for, or on behalf of, a Benefit Plan will not result in a non-exempt
      prohibited transaction under Section 406 of ERISA or Section 4975 of the Code
      which is not covered under Prohibited Transaction Class Exemption (“PTCE”)
      84-14, PTCE 90-1, PTCE 91-38, PTCE 95-60, PTCE 96-23 or some other applicable
      exemption, and will not result in a non-exempt violation of any Similar
      Law.

     

    3.  
       The
      Investor hereby acknowledges that under the terms of the Indenture among Aames
      Mortgage Investment Trust 2006-1, as Issuer, Wells Fargo Bank, N.A., as Trust
      Administrator, and Deutsche Bank National Trust Company, as Indenture Trustee,
      dated as of April 1, 2006, no transfer of any Note shall be permitted to be
      made
      to any person unless the Trust Administrator has received a certificate from
      such transferee in the form hereof.

     

    
      
         

         

        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    IN
      WITNESS WHEREOF, the Investor has caused this instrument to be executed on
      its
      behalf, pursuant to proper authority, by its duly authorized officer, duly
      attested, this ____ day of _______________, 20__.

     

    ________________________________________

    [Investor]

    

    

    By:______________________________________

    Name:

    Title:

    ATTEST:

     

    ___________________________

     

    STATE
      OF                                            )

    )
      ss.:

    COUNTY
      OF                                      
 )

     

    Personally
      appeared before me the above-named ___________________, known or proved to
      me to
      be the same person who executed the foregoing instrument and to be the
      _________________ of the Investor, and acknowledged that he executed the same
      as
      his free act and deed and the free act and deed of the Investor.

     

    Subscribed
      and sworn before me this _____ day of ___________ 20___.

     

    

    ____________________________________

    NOTARY
      PUBLIC

    

    My
      commission expires the

    ____
      day
      of __________, 20__.exv4w4

 

Exhibit 4.4

SOLEXA, INC.,

ISSUER

AND

[TRUSTEE], TRUSTEE

 

INDENTURE

DATED AS OF [_______], 200_

 

SENIOR DEBT SECURITIES

 

 

Table
of Contents

	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	Page	 
	ARTICLE 1	 	DEFINITIONS	 	 	1	 
	 
	 	 	 	 	 	 	 	 	 	 
	 

	 	 	1.01	 	 	Definitions Of Terms
	 	 	1	 
	 
	 	 	 	 	 	 	 	 	 	 
	ARTICLE 2	 	ISSUE, DESCRIPTION, TERMS, EXECUTION, REGISTRATION AND EXCHANGE OF SECURITIES	 	 	4	 
	 
	 	 	 	 	 	 	 	 	 	 
	 

	 	 	2.01	 	 	Designation And Terms Of Securities
	 	 	4	 
	 

	 	 	2.02	 	 	Form Of Securities And Trustee’s Certificate
	 	 	5	 
	 

	 	 	2.03	 	 	Denominations: Provisions For Payment
	 	 	6	 
	 

	 	 	2.04	 	 	Execution And Authentications
	 	 	7	 
	 

	 	 	2.05	 	 	Registration Of Transfer And Exchange
	 	 	7	 
	 

	 	 	2.06	 	 	Temporary Securities
	 	 	8	 
	 

	 	 	2.07	 	 	Mutilated, Destroyed, Lost Or Stolen Securities
	 	 	8	 
	 

	 	 	2.08	 	 	Cancellation
	 	 	9	 
	 

	 	 	2.09	 	 	Benefits Of Indenture
	 	 	9	 
	 

	 	 	2.10	 	 	Authenticating Agent
	 	 	9	 
	 

	 	 	2.11	 	 	Global Securities
	 	 	9	 
	 
	 	 	 	 	 	 	 	 	 	 
	ARTICLE 3	 	REDEMPTION OF SECURITIES AND SINKING FUND PROVISIONS	 	 	10	 
	 
	 	 	 	 	 	 	 	 	 	 
	 

	 	 	3.01	 	 	Redemption
	 	 	10	 
	 

	 	 	3.02	 	 	Notice Of Redemption
	 	 	10	 
	 

	 	 	3.03	 	 	Payment Upon Redemption
	 	 	11	 
	 

	 	 	3.04	 	 	Sinking Fund
	 	 	11	 
	 

	 	 	3.05	 	 	Satisfaction Of Sinking Fund Payments With Securities
	 	 	12	 
	 

	 	 	3.06	 	 	Redemption Of Securities For Sinking Fund
	 	 	12	 
	 
	 	 	 	 	 	 	 	 	 	 
	ARTICLE 4	 	COVENANTS	 	 	12	 
	 
	 	 	 	 	 	 	 	 	 	 
	 

	 	 	4.01

4.02

4.03

4.04

4.05	 	 	Payment Of Principal, Premium And Interest

Maintenance Of Office Or Agency

Paying Agents

Appointment To Fill Vacancy In Office Of Trustee

Compliance With Consolidation Provisions
	 	 	12

12

12

13

13	 
	 
	 	 	 	 	 	 	 	 	 	 
	ARTICLE 5	 	SECURITYHOLDERS’ LISTS AND REPORTS BY THE COMPANY AND THE TRUSTEE	 	 	13	 
	 
	 	 	 	 	 	 	 	 	 	 
	 

	 	 	5.01	 	 	Company To Furnish Trustee Names And Addresses Of Securityholders	 	 	13	 
	 

	 	 	5.02	 	 	Preservation Of Information; Communications With Securityholders
	 	 	14	 
	 

	 	 	5.03	 	 	Reports By The Company
	 	 	14	 
	 

	 	 	5.04	 	 	Reports By The Trustee
	 	 	14	 
	 
	 	 	 	 	 	 	 	 	 	 
	ARTICLE 6	 	REMEDIES OF THE TRUSTEE AND SECURITYHOLDERS ON EVENT OF DEFAULT	 	 	14	 

  -i-

 

 

Table of Contents

(CONTINUED)

	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	Page	 
	 
	 
	 	6.01	 	Events Of Default	 	 	14	 
	 
	 	6.02	 	Collection Of Indebtedness And Suits For Enforcement By Trustee	 	 	16	 
	 
	 	6.03	 	Application Of Moneys Collected	 	 	17	 
	 
	 	6.04	 	Limitation On Suits	 	 	17	 
	 
	 	6.05	 	Rights And Remedies Cumulative; Delay Or Omission Not Waiver	 	 	17	 
	 
	 	6.06	 	Control By Securityholders	 	 	18	 
	 
	 	6.07	 	Undertaking To Pay Costs	 	 	18	 
	 
	 	 	 	 	 	 	 	 
	ARTICLE 7	 	CONCERNING THE TRUSTEE	 	 	18	 
	 
	 	 	 	 	 	 	 	 
	 
	 	7.01	 	Certain Duties And Responsibilities Of Trustee	 	 	18	 
	 
	 	7.02	 	Certain Rights Of Trustee	 	 	19	 
	 
	 	7.03	 	Trustee Not Responsible For Recitals Or Issuance Or Securities	 	 	20	 
	 
	 	7.04	 	May Hold Securities	 	 	20	 
	 
	 	7.05	 	Moneys Held In Trust	 	 	20	 
	 
	 	7.06	 	Compensation And Reimbursement	 	 	20	 
	 
	 	7.07	 	Reliance On Officers’ Certificate	 	 	21	 
	 
	 	7.08	 	Disqualification; Conflicting Interests	 	 	21	 
	 
	 	7.09	 	Corporate Trustee Required; Eligibility	 	 	21	 
	 
	 	7.10	 	Resignation And Removal; Appointment Of Successor	 	 	21	 
	 
	 	7.11	 	Acceptance Of Appointment By Successor	 	 	22	 
	 
	 	7.12	 	Merger, Conversion, Consolidation Or Succession To Business	 	 	23	 
	 
	 	7.13	 	Preferential Collection Of Claims Against The Company	 	 	23	 
	 
	 	7.14	 	Notice Of Default	 	 	23	 
	 
	 	 	 	 	 	 	 	 
	ARTICLE 8	 	CONCERNING THE SECURITYHOLDERS	 	 	23	 
	 
	 	 	 	 	 	 	 	 
	 
	 	8.01	 	Evidence Of Action By Securityholders	 	 	24	 
	 
	 	8.02	 	Proof Of Execution By Securityholders	 	 	24	 
	 
	 	8.03	 	Who May Be Deemed Owners	 	 	24	 
	 
	 	8.04	 	Certain Securities Owned By Company Disregarded	 	 	24	 
	 
	 	8.05	 	Actions Binding On Future Securityholders	 	 	25	 
	 
	 	 	 	 	 	 	 	 
	ARTICLE 9	 	SUPPLEMENTAL INDENTURES	 	 	25	 
	 
	 	 	 	 	 	 	 	 
	 
	 	9.01	 	Supplemental Indentures Without The Consent Of Securityholders	 	 	25	 
	 
	 	9.02	 	Supplemental Indentures With Consent Of Securityholders	 	 	26	 
	 
	 	9.03	 	Effect Of Supplemental Indentures	 	 	26	 
	 
	 	9.04	 	Securities Affected By Supplemental Indentures	 	 	26	 
	 
	 	9.05	 	Execution Of Supplemental Indentures	 	 	26	 
	 
	 	 	 	 	 	 	 	 
	ARTICLE 10	 	SUCCESSOR ENTITY	 	 	27	 

  -ii-

 

 

Table of Contents

(CONTINUED)

	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	Page
	 
	 

	 	 	10.01

10.02

10.03	 	 	Company May Consolidate, Etc

Successor Entity Substituted

Evidence Of Consolidation, Etc. To Trustee
	 	 	27

27

27	 
	 
	 	 	 	 	 	 	 	 	 	 
	ARTICLE 11	 	SATISFACTION AND DISCHARGE	 	 	27	 
	 
	 	 	 	 	 	 	 	 	 	 
	 

	 	 	11.01

11.02

11.03

11.04

11.05	 	 	Satisfaction And Discharge Of Indenture

Discharge Of Obligations

Deposited Moneys To Be Held In Trust

Payment Of Moneys Held By Paying Agents

Repayment To Company
	 	 	28

28

28

28

28	 
	 
	 	 	 	 	 	 	 	 	 	 
	ARTICLE 12	 	IMMUNITY OF INCORPORATORS, STOCKHOLDERS, OFFICERS AND DIRECTORS	 	 	29	 
	 
	 	 	 	 	 	 	 	 	 	 
	 

	 	 	12.01	 	 	No Recourse
	 	 	29	 
	 
	 	 	 	 	 	 	 	 	 	 
	ARTICLE 13	 	MISCELLANEOUS PROVISIONS	 	 	29	 
	 
	 	 	 	 	 	 	 	 	 	 
	 

	 	 	13.01

13.02

13.03

13.04

13.05

13.06

13.07

13.08

13.09

13.10

13.11

13.12	 	 	Effect On Successors And Assigns

Actions By Successor

Surrender Of Company Powers

Notices

Governing Law

Treatment Of Securities As Debt

Certificates And Opinions As To Conditions Precedent

Payments On Business Days

Conflict With Trust Indenture Act

Counterparts

Separability

Compliance Certificates
	 	 	29

29

29

29

29

29

30

30

30

30

30

30	 

  -iii-

 

 

     Indenture,
dated as of [___], 200_, among
Solexa,
Inc., a
Delaware corporation (the “Company”), and
[Trustee ], as trustee (the “Trustee”):

     Whereas, for its lawful corporate purposes, the Company has duly authorized the
execution and delivery of this Indenture to provide for the issuance of debt securities
(hereinafter referred to as the “Securities”), in an unlimited aggregate principal amount to be
issued from time to time in one or more series as in this Indenture provided, as registered
Securities without coupons, to be authenticated by the certificate of the Trustee;

     Whereas, to provide the terms and conditions upon which the Securities are to be
authenticated, issued and delivered, the Company has duly authorized the execution of this
Indenture; and

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

     Now,
Therefore, in consideration of the premises and the purchase of the
Securities by the holders thereof, it is mutually covenanted and agreed as follows for the equal
and ratable benefit of the holders of Securities:

ARTICLE 1

DEFINITIONS

1.01 Definitions Of Terms. The terms defined in this Section (except as in this Indenture or any
indenture supplemental hereto otherwise expressly provided or unless the context otherwise
requires) for all purposes of this Indenture and of any indenture supplemental hereto shall have
the respective meanings specified in this Section and shall include the plural as well as the
singular. All other terms used in this Indenture that are defined in the Trust Indenture Act of
1939, as amended, or that are by reference in such Act defined in the Securities Act of 1933, as
amended (except as herein or any indenture supplemental hereto otherwise expressly provided or
unless the context otherwise requires), shall have the meanings assigned to such terms in said
Trust Indenture Act and in said Securities Act as in force at the date of the execution of this
instrument.

     “Authenticating Agent” means an authenticating agent with respect to all or any of the series
of Securities appointed by the Trustee pursuant to Section 2.10.

     “Bankruptcy Law” means Title 11, U.S. Code, or any similar federal or state law for the relief
of debtors.

     “Board Of Directors” means the Board of Directors of the Company or any duly authorized
committee of such Board.

     “Board Resolution” means a copy of a resolution certified by the Secretary or an Assistant
Secretary of the Company to have been duly adopted by the Board of Directors and to be in full
force and effect on the date of such certification.

     “Business Day” means, with respect to any series of Securities, any day other than a day on
which federal or state banking institutions in the Borough of Manhattan, the City of New York, or
in the city of the Corporate Trust Office of the Trustee, are authorized or obligated by law,
executive order or regulation to close.

     “Certificate” means a certificate signed by any Officer. The Certificate need not comply with
the provisions of Section 13.07.

     “Company” means Solexa, Inc., a corporation duly organized and existing under the laws of the
State of Delaware, and, subject to the provisions of Article Ten, shall also include its successors
and assigns.

     “Corporate Trust Office” means the office of the Trustee at which, at any particular time, its
corporate trust business shall be principally administered, which office at the date hereof is
located at [___].

 

 

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

     “Default” means any event, act or condition that with notice or lapse of time, or both, would
constitute an Event of Default.

     “Depositary” means, with respect to Securities of any series for which the Company shall
determine that such Securities will be issued as a Global Security, The Depository Trust Company,
New York, New York, another clearing agency, or any successor registered as a clearing agency under
the Securities and Exchange Act of 1934, as amended (the “Exchange Act”), or other applicable
statute or regulation, which, in each case, shall be designated by the Company pursuant to either
Section 2.01 or 2.11.

     “Event Of Default” means, with respect to Securities of a particular series, any event
specified in Section 6.01, continued for the period of time, if any, therein designated.

     “Global Security” means, with respect to any series of Securities, a Security executed by the
Company and delivered by the Trustee to the Depositary or pursuant to the Depositary’s instruction,
all in accordance with the Indenture, which shall be registered in the name of the Depositary or
its nominee.

     “Governmental Obligations” means securities that are (a) direct obligations of the United
States of America for the payment of which its full faith and credit is pledged or (b) obligations
of a Person controlled or supervised by and acting as an agency or instrumentality of the United
States of America, the payment of which is unconditionally guaranteed as a full faith and credit
obligation by the United States of America that, in either case, are not callable or redeemable at
the option of the issuer thereof at any time prior to the stated maturity of the Securities, and
shall also include a depositary receipt issued by a bank or trust company ascustodian with respect
to any such Governmental Obligation or a specific payment of principal of or interest on any such
Governmental Obligation held by such custodian for the account of the holder of such depositary
receipt; provided, however, that (except as required by law) such custodian is not authorized to
make any deduction from the amount payable to the holder of such depositary receipt from any amount
received by the custodian in respect of the Governmental Obligation or the specific payment of
principal of or interest on the Governmental Obligation evidenced by such depositary receipt.

     “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.

     “Indenture” means this instrument as originally executed or as it may from time to time be
supplemented or amended by one or more indentures supplemental hereto entered into in accordance
with the terms hereof.

     “Interest Payment Date”, when used with respect to any installment of interest on a Security
of a particular series, means the date specified in such Security or in a Board Resolution or in an
indenture supplemental hereto with respect to such series as the fixed date on which an installment
of interest with respect to Securities of that series is due and payable.

     “Officer” means, with respect to the Company, the chairman of the Board of Directors, a chief
executive officer, a president, a chief operating officer, any senior vice president, any vice
president or a chief financial officer, the treasurer or any assistant treasurer, the controller or
any assistant controller or the secretary or any assistant secretary.

     “Officers’ Certificate” means a certificate signed by any two Officers. Each such certificate
shall include the statements provided for in Section 13.07, if and to the extent required by the
provisions thereof.

     “Opinion Of Counsel” means an opinion in writing subject to customary exceptions of legal
counsel, who may be an employee of or counsel for the Company, that is delivered to the Trustee in
accordance with the terms hereof. Each such opinion shall include the statements provided for in
Section 13.07, if and to the extent required by the provisions thereof.

2

 

     “Outstanding”, when used with reference to Securities of any series, means, subject to the
provisions of Section 8.04, as of any particular time, all Securities of that series theretofore
authenticated and delivered by the Trustee under this Indenture, except (a) Securities theretofore
canceled by the Trustee or any paying agent, or delivered to the Trustee or any paying agent for
cancellation or that have previously been canceled; (b) Securities or portions thereof for the
payment or redemption of which moneys or Governmental Obligations in the necessary amount shall
have been deposited in trust with the Trustee or with any paying agent (other than the Company) or
shall have been set aside and segregated in trust by the Company (if the Company shall act as its
own paying agent); provided, however, that if such Securities or portions of such Securities are to
be redeemed prior to the maturity thereof, notice of such redemption shall have been given as in
Article Three provided, or provision satisfactory to the Trustee shall have been made for giving
such notice; and (c) Securities in lieu of or in substitution for which other Securities shall have
been authenticated and delivered pursuant to the terms of Section 2.07.

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

     “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 2.07 in lieu of a lost,
destroyed or stolen Security shall be deemed to evidence the same debt as the lost, destroyed or
stolen Security.

     “Responsible Officer” when used with respect to the Trustee means the chairman of its board of
directors, the chief executive officer, the president, any vice president, the secretary, the
treasurer, any trust officer, any corporate trust officer or any other officer or assistant officer
of the Trustee customarily performing functions similar to those performed by the Persons who at
the time shall be such officers, respectively, or to whom any corporate trust matter is referred
because of his or her knowledge of and familiarity with the particular subject.

     “Securities” means the debt Securities authenticated and delivered under this Indenture.

     “Securityholder”, “holder of Securities”, “registered holder”, or other similar term, means
the Person or Persons in whose name or names a particular Security shall be registered on the books
of the Company kept for that purpose in accordance with the terms of this Indenture.

     “Security Register” and “Security Registrar” shall have the meanings as set forth in Section
2.05.

     “Subsidiary” means, with respect to any Person, (i) any corporation at least a majority of
whose outstanding Voting Stock shall at the time be owned, directly or indirectly, by such Person
or by one or more of its Subsidiaries or by such Person and one or more of its Subsidiaries, (ii)
any general partnership, joint venture or similar entity, at least a majority of whose outstanding
partnership or similar interests shall at the time be owned by such Person, or by one or more of
its Subsidiaries, or by such Person and one or more of its Subsidiaries and (iii) any limited
partnership of which such Person or any of its Subsidiaries is a general partner.

     “Trustee” means [___], and, subject to the provisions of Article Seven, shall also include
its successors and assigns, and, if at any time there is more than one Person acting in such
capacity hereunder, “Trustee” shall mean each such Person. The term “Trustee” as used with respect
to a particular series of the Securities shall mean the trustee with respect to that series.

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

     “Voting Stock”, as applied to stock of any Person, means shares, interests, participations or
other equivalents in the equity interest (however designated) in such Person having ordinary voting
power for the election of a majority of the directors (or the equivalent) of such Person, other
than shares, interests, participations or other equivalents having such power only by reason of the
occurrence of a contingency.

3

 

ARTICLE 2

ISSUE, DESCRIPTION, TERMS, EXECUTION, REGISTRATION

AND EXCHANGE OF SECURITIES

2.01 Designation And Terms Of Securities.

     (a) 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 up to the aggregate
principal amount of Securities of that series from time to time authorized by or pursuant to a
Board Resolution or pursuant to one or more indentures supplemental hereto. Prior to the initial
issuance of Securities of any series, there shall be established in or pursuant to a Board
Resolution, and set forth in an Officers’ Certificate, or established in one or more indentures
supplemental hereto:

     (1) the title of the Securities of the series (which shall distinguish the Securities of that
series from all other Securities);

     (2) any limit upon the aggregate principal amount of the Securities of that 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 that
series);

     (3) the date or dates on which the principal of the Securities of the series is payable, any
original issue discount that may apply to the Securities of that series upon their issuance, the
principal amount due at maturity, and the place(s) of payment;

     (4) the rate or rates at which the Securities of the series shall bear interest or the manner
of calculation of such rate or rates, if any;

     (5) the date or dates from which such interest shall accrue, the Interest Payment Dates on
which such interest will be payable or the manner of determination of such Interest Payment Dates,
the place(s) of payment, and the record date for the determination of holders to whom interest is
payable on any such Interest Payment Dates or the manner of determination of such record dates;

     (6) the right, if any, to extend the interest payment periods and the duration of such
extension;

     (7) 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 Company;

     (8) the obligation, if any, of the Company to redeem or purchase Securities of the series
pursuant to any sinking fund, mandatory redemption, or analogous provisions (including payments
made in cash in satisfaction of future sinking fund obligations) 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 which, Securities of the series shall be redeemed or purchased, in whole or in
part, pursuant to such obligation;

     (9) the form of the Securities of the series including the form of the Certificate of
Authentication for such series;

     (10) if other than denominations of one thousand U.S. dollars ($1,000) or any integral
multiple thereof, the denominations in which the Securities of the series shall be issuable;

     (11) any and all other terms (including terms, to the extent applicable, relating to any
auction or remarketing of the Securities of that series and any security for the obligations of the
Company with respect to such Securities) with respect to such series (which terms shall not be
inconsistent with the terms of this Indenture, as amended by any supplemental indenture) including
any terms which may be required by or advisable under United States laws or regulations or
advisable in connection with the marketing of Securities of that series;

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     (12) whether the Securities are issuable as a Global Security and, in such case, the terms and
the identity of the Depositary for such series;

     (13) whether the Securities will be convertible into or exchangeable for shares of common
stock or other securities of the Company or any other Person and, if so, the terms and conditions
upon which such Securities will be so convertible or exchangeable, including the conversion or
exchange price, as applicable, or how it will be calculated and may be adjusted, any mandatory or
optional (at the Company’s option or the holders’ option) conversion or exchange features, and the
applicable conversion or exchange period;

     (14) 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 6.01;

     (15) any additional or different Events of Default or restrictive covenants (which may
include, among other restrictions, restrictions on the Company’s ability or the ability of the
Company’s Subsidiaries to: incur additional indebtedness; issue additional securities; create
liens; pay dividends or make distributions in respect of their capital stock; redeem capital stock;
place restrictions on such Subsidiaries placing restrictions on their ability to pay dividends,
make distributions or transfer assets; make investments or other restricted payments; sell or
otherwise dispose of assets; enter into sale-leaseback transactions; engage in transactions with
stockholders and affiliates; issue or sell stock of their Subsidiaries; or effect a consolidation
or merger) or financial covenants (which may include, among other financial covenants, financial
covenants that require the Company and its Subsidiaries to maintain specified interest coverage,
fixed charge, cash flow-based or asset-based ratios) provided for with respect to the Securities of
the series;

     (16) if other than dollars, the coin or currency in which the Securities of the series are
denominated (including, but not limited to, foreign currency);

     (17) the terms and conditions, if any, upon which the Company shall pay amounts in addition to
the stated interest, premium, if any and principal amounts of the Securities of the series to any
Securityholder that is not a “United States person” for federal tax purposes; and

     (18) any restrictions on transfer, sale or assignment of the Securities of the series.

     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 any such Board Resolution or in any
indentures supplemental hereto.

     If any of the terms of the series are established by action taken pursuant to a Board
Resolution of the Company, a copy of an appropriate record of such action shall be certified by the
secretary or an assistant secretary of the Company and delivered to the Trustee at or prior to the
delivery of the Officers’ Certificate of the Company setting forth the terms of the series.

     Securities of any particular series may be issued at various times, with different dates on
which the principal or any installment of principal is payable, with different rates of interest,
if any, or different methods by which rates of interest may be determined, with different dates on
which such interest may be payable and with different redemption dates.

2.02 Form Of Securities And Trustee’s Certificate. The Securities of any series and the Trustee’s
certificate of authentication to be borne by such Securities shall be substantially of the tenor
and purport as set forth in one or more indentures supplemental hereto or as provided in a Board
Resolution, and set forth in an Officers’ Certificate, and they may have such letters, numbers or
other marks of identification or designation and such legends or endorsements printed, lithographed
or engraved thereon as the Company may deem appropriate and as are not inconsistent with the
provisions of this Indenture, or as may be required to comply with any law or with any rule or
regulation made pursuant thereto or with any rule or regulation of any securities exchange on which
Securities of that series may be listed, or to conform to usage.

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2.03 Denominations: Provisions For Payment. The Securities shall be issuable as registered
Securities and in the denominations of one thousand U.S. dollars ($1,000) or any integral multiple
thereof, subject to Section 2.01(10). The Securities of a particular series shall bear interest
payable on the dates and at the rate specified with respect to that series. The principal of and
the interest on the Securities of any series, as well as any premium thereon in case of redemption
thereof prior to maturity, shall be payable in the coin or currency of the United States of America
that at the time is legal tender for public and private debt, at the office or agency of the
Company maintained for that purpose in the Borough of Manhattan, the City and State of New York.
Each Security shall be dated the date of its authentication. Interest on the Securities shall be
computed on the basis of a 360-day year composed of twelve 30-day months.

     The interest installment on any Security that is payable, and is punctually paid or duly
provided for, on any Interest Payment Date for Securities of that series shall be paid to the
Person in whose name said Security (or one or more Predecessor Securities) is registered at the
close of business on the regular record date for such interest installment. In the event that any
Security of a particular series or portion thereof is called for redemption and the redemption date
is subsequent to a regular record date with respect to any Interest Payment Date and prior to such
Interest Payment Date, interest on such Security will be paid upon presentation and surrender of
such Security as provided in Section 3.03.

     Any interest on any Security that is payable, but is not punctually paid or duly provided for,
on any Interest Payment Date for Securities of the same series (herein called “Defaulted Interest”)
shall forthwith cease to be payable to the registered holder on the relevant regular record date by
virtue of having been such holder; and such Defaulted Interest shall be paid by the Company, at its
election, as provided in clause (1) or clause (2) below:

     (1) The Company may make payment of any Defaulted Interest on Securities to the Persons in
whose names such Securities (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 Company shall notify the Trustee in writing of the amount of
Defaulted Interest proposed to be paid on each such Security and the date of the proposed payment,
and at the same time the Company 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 not be more than 15 nor 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 Company
of such special record date and, in the name and at the expense of the Company, shall cause notice
of the proposed payment of such Defaulted Interest and the special record date therefor to be
mailed, first class postage prepaid, to each Securityholder at his or her address as it appears in
the Security Register (as hereinafter defined), 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 mailed as aforesaid, such Defaulted Interest shall be paid to the Persons in
whose names such Securities (or their respective Predecessor Securities) are registered on such
special record date.

     (2) The Company may make payment of any Defaulted Interest on any Securities 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 Company to the Trustee of the proposed payment pursuant to this clause, such
manner of payment shall be deemed practicable by the Trustee.

     Unless otherwise set forth in a Board Resolution or one or more indentures supplemental hereto
establishing the terms of any series of Securities pursuant to Section 2.01 hereof, the term
“regular record date” as used in this Section with respect to a series of Securities and any
Interest Payment Date for such series shall mean either the fifteenth day of the month immediately
preceding the month in which an Interest Payment Date established for such series pursuant to
Section 2.01 hereof shall occur, if such Interest Payment Date is the first day of a month, or the
first day of the month in which an Interest Payment Date established for such series pursuant to
Section 2.01 hereof shall occur, if such Interest Payment Date is the fifteenth day of a month,
whether or not such date is a Business Day.

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

2.04 Execution And Authentications. The Securities shall be signed on behalf of the Company by one
of its Officers. Signatures may be in the form of a manual or facsimile signature.

     The Company may use the facsimile signature of any Person who shall have been an Officer,
notwithstanding the fact that at the time the Securities shall be authenticated and delivered or
disposed of such Person shall have ceased to be such an officer of the Company. The Securities may
contain such notations, legends or endorsements required by law, stock exchange rule or usage. Each
Security shall be dated the date of its authentication by the Trustee.

     A Security shall not be valid until authenticated manually by an authorized signatory of the
Trustee, or by an Authenticating Agent. Such signature shall be conclusive evidence that the
Security so authenticated has been duly authenticated and delivered hereunder and that the holder
is entitled to the benefits of this Indenture. At any time and from time to time after the
execution and delivery of this Indenture, the Company may deliver Securities of any series executed
by the Company to the Trustee for authentication, together with a written order of the Company for
the authentication and delivery of such Securities, signed by an Officer, and the Trustee in
accordance with such written order shall authenticate and deliver such Securities.

     In authenticating such Securities and accepting the additional responsibilities under this
Indenture in relation to such Securities, the Trustee shall be entitled to receive, and (subject to
Section 7.01) shall be fully protected in relying upon, an Opinion of Counsel stating that the form
and terms thereof have been established in conformity with the provisions of this Indenture.

     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 that is not reasonably acceptable
to the Trustee.

2.05 Registration Of Transfer And Exchange.

     (a) Securities of any series may be exchanged upon presentation thereof at the office or
agency of the Company designated for such purpose in the Borough of Manhattan, the City and State
of New York, for other Securities of such series of authorized denominations, and for a like
aggregate principal amount, upon payment of a sum sufficient to cover any tax or other governmental
charge in relation thereto, all as provided in this Section. In respect of any Securities so
surrendered for exchange, the Company shall execute, the Trustee shall authenticate and such office
or agency shall deliver in exchange therefor the Security or Securities of the same series that the
Securityholder making the exchange shall be entitled to receive, bearing numbers not
contemporaneously outstanding.

     (b) The Company shall keep, or cause to be kept, at its office or agency designated for such
purpose in the Borough of Manhattan, the City and State of New York, or such other location
designated by the Company, a register or registers (herein referred to as the “Security Register”)
in which, subject to such reasonable regulations as it may prescribe, the Company shall register
the Securities and the transfers of Securities as in this Article provided and which at all
reasonable times shall be open for inspection by the Trustee. The registrar for the purpose of
registering Securities and transfer of Securities as herein provided shall be appointed as
authorized by Board Resolution (the “Security Registrar”).

     Upon surrender for transfer of any Security at the office or agency of the Company designated
for such purpose, the Company shall execute, the Trustee shall authenticate and such office or
agency shall deliver in the name of the transferee or transferees a new Security or Securities of
the same series as the Security presented for a like aggregate principal amount.

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     All Securities presented or surrendered for exchange or registration of transfer, as provided
in this Section, shall be accompanied (if so required by the Company or the Security Registrar) by
a written instrument or instruments of transfer, in form satisfactory to the Company or the
Security Registrar, duly executed by the registered holder or by such holder’s duly authorized
attorney in writing.

     (c) Except as provided pursuant to Section 2.01 pursuant to a Board Resolution, and set forth
in an Officers’ Certificate, or established in one or more indentures supplemental to this
Indenture, no service charge shall be made for any exchange or registration of transfer of
Securities, or issue of new Securities in case of partial redemption of any series, but the Company
may require payment of a sum sufficient to cover any tax or other governmental charge in relation
thereto, other than exchanges pursuant to Section 2.06, Section 3.03(b) and Section 9.04 not
involving any transfer.

     (d) The Company shall not be required (i) to issue, exchange or register the transfer of any
Securities during a period beginning at the opening of business 15 days before the day of the
mailing of a notice of redemption of less than all the Outstanding Securities of the same series
and ending at the close of business on the day of such mailing, nor (ii) to register the transfer
of or exchange any Securities of any series or portions thereof called for redemption, other than
the unredeemed portion of any such Securities being redeemed in part. The provisions of this
Section 2.05 are, with respect to any Global Security, subject to Section 2.11 hereof.

2.06 Temporary Securities. Pending the preparation of definitive Securities of any series, the
Company may execute, and the Trustee shall authenticate and deliver, temporary Securities (printed,
lithographed or typewritten) of any authorized denomination. Such temporary Securities shall be
substantially in the form of the definitive Securities in lieu of which they are issued, but with
such omissions, insertions and variations as may be appropriate for temporary Securities, all as
may be determined by the Company. Every temporary Security of any series shall be executed by the
Company and be authenticated by the Trustee upon the same conditions and in substantially the same
manner, and with like effect, as the definitive Securities of such series. Without unnecessary
delay, the Company will execute and will furnish definitive Securities of such series and thereupon
any or all temporary Securities of such series may be surrendered in exchange therefor (without
charge to the holders), at the office or agency of the Company designated for the purpose in the
Borough of Manhattan, the City and State of New York, and the Trustee shall authenticate and such
office or agency shall deliver in exchange for such temporary Securities an equal aggregate
principal amount of definitive Securities of such series, unless the Company advises the Trustee to
the effect that definitive Securities need not be executed and furnished until further notice from
the Company. Until so exchanged, the temporary Securities of such series shall be entitled to the
same benefits under this Indenture as definitive Securities of such series authenticated and
delivered hereunder.

2.07 Mutilated, Destroyed, Lost Or Stolen Securities. In case any temporary or definitive Security
shall become mutilated or be destroyed, lost or stolen, the Company (subject to the next succeeding
sentence) shall execute, and upon the Company’s request the Trustee (subject as aforesaid) shall
authenticate and deliver, a new Security of the same series, bearing a number not contemporaneously
outstanding, in exchange and substitution for the mutilated Security, or in lieu of and in
substitution for the Security so destroyed, lost or stolen. In every case the applicant for a
substituted Security shall furnish to the Company and the Trustee such security or indemnity as may
be required by them to save each of them harmless, and, in every case of destruction, loss or
theft, the applicant shall also furnish to the Company and the Trustee evidence to their
satisfaction of the destruction, loss or theft of the applicant’s Security and of the ownership
thereof. The Trustee may authenticate any such substituted Security and deliver the same upon the
written request or authorization of any officer of the Company. Upon the issuance of any
substituted Security, the Company 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.

     In case any Security that has matured or is about to mature shall become mutilated or be
destroyed, lost or stolen, the Company may, instead of issuing a substitute Security, pay or
authorize the payment of the same (without surrender thereof except in the case of a mutilated
Security) if the applicant for such payment shall furnish to the Company and the Trustee such
security or indemnity as they may require to save them harmless, and, in case of destruction, loss
or theft, evidence to the satisfaction of the Company and the Trustee of the destruction, loss or
theft of such Security and of the ownership thereof.

8

 

     Every replacement Security issued pursuant to the provisions of this Section shall constitute
an additional contractual obligation of the Company whether or not the mutilated, destroyed, lost
or stolen Security shall be found at any time, or be enforceable by anyone, and shall be entitled
to all the benefits of this Indenture equally and proportionately with any and all other Securities
of the same series duly issued hereunder. All Securities shall be held and owned upon the express
condition that the foregoing provisions are exclusive with respect to the replacement or payment of
mutilated, destroyed, lost or stolen Securities, and shall preclude (to the extent lawful) any and
all other rights or remedies, notwithstanding any law or statute existing or hereafter enacted to
the contrary with respect to the replacement or payment of negotiable instruments or other
securities without their surrender.

2.08 Cancellation. All Securities surrendered for the purpose of payment, redemption, exchange or
registration of transfer shall, if surrendered to the Company or any paying agent, be delivered to
the Trustee for cancellation, or, if surrendered to the Trustee, shall be cancelled by it, and no
Securities shall be issued in lieu thereof except as expressly required or permitted by any of the
provisions of this Indenture. On request of the Company at the time of such surrender, the Trustee
shall deliver to the Company canceled Securities held by the Trustee. In the absence of such
request the Trustee may dispose of canceled Securities in accordance with its standard procedures
and deliver a certificate of disposition to the Company. If the Company shall otherwise acquire any
of the Securities, however, such acquisition shall not operate as a redemption or satisfaction of
the indebtedness represented by such Securities unless and until the same are delivered to the
Trustee for cancellation.

2.09 Benefits Of Indenture. Nothing in this Indenture or in the Securities, express or implied,
shall give or be construed to give to any Person, other than the parties hereto and the holders of
the Securities any legal or equitable right, remedy or claim under or in respect of this Indenture,
or under any covenant, condition or provision herein contained; all such covenants, conditions and
provisions being for the sole benefit of the parties hereto and of the holders of the Securities.

2.10 Authenticating Agent. So long as any of the Securities of any series remain Outstanding there
may be an Authenticating Agent for any or all such series of Securities which the Trustee shall
have the right to appoint. Said Authenticating Agent shall be authorized to act on behalf of the
Trustee to authenticate Securities of such series issued upon exchange, transfer or partial
redemption thereof, 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. All references in this Indenture to the authentication of Securities by the Trustee
shall be deemed to include authentication by an Authenticating Agent for such series. Each
Authenticating Agent shall be acceptable to the Company and shall be a corporation that has a
combined capital and surplus, as most recently reported or determined by it, sufficient under the
laws of any jurisdiction under which it is organized or in which it is doing business to conduct a
trust business, and that is otherwise authorized under such laws to conduct such business and is
subject to supervision or examination by federal or state authorities. If at any time any
Authenticating Agent shall cease to be eligible in accordance with these provisions, it shall
resign immediately.

     Any Authenticating Agent may at any time resign by giving written notice of resignation to the
Trustee and to the Company. The Trustee may at any time (and upon request by the Company shall)
terminate the agency of any Authenticating Agent by giving written notice of termination to such
Authenticating Agent and to the Company. Upon resignation, termination or cessation of eligibility
of any Authenticating Agent, the Trustee may appoint an eligible successor Authenticating Agent
acceptable to the Company. Any successor Authenticating Agent, upon acceptance of its appointment
hereunder, shall become vested with all the rights, powers and duties of its predecessor hereunder
as if originally named as an Authenticating Agent pursuant hereto.

2.11 Global Securities.

     (a) If the Company shall establish pursuant to Section 2.01 that the Securities of a
particular series are to be issued as a Global Security, then the Company shall execute and the
Trustee shall, in accordance with Section 2.04, authenticate and deliver, a Global Security that
(i) shall represent, and shall be denominated in an amount equal to the aggregate principal amount
of, all of the Outstanding Securities of such series, (ii) shall be registered in the name of the
Depositary or its nominee, (iii) shall be delivered by the Trustee to the Depositary or pursuant to
the Depositary’s instruction and (iv) shall bear a legend substantially to the following effect:
“Except as otherwise provided in Section 2.11 of the Indenture, this Security may be transferred,
in whole but not in part, only to another nominee of the Depositary or to a successor Depositary or
to a nominee of such successor Depositary.”

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     (b) Notwithstanding the provisions of Section 2.05, the Global Security of a series may be
transferred, in whole but not in part and in the manner provided in Section 2.05, only to another
nominee of the Depositary for such series, or to a successor Depositary for such series selected or
approved by the Company or to a nominee of such successor Depositary.

     (c) If at any time the Depositary for a series of the Securities notifies the Company that it
is unwilling or unable to continue as Depositary for such series or if at any time the Depositary
for such series shall no longer be registered or in good standing under the Exchange Act, or other
applicable statute or regulation, and a successor Depositary for such series is not appointed by
the Company within 90 days after the Company receives such notice or becomes aware of such
condition, as the case may be, or if an Event of Default has occurred and is continuing and the
Company has received a request from the Depositary, this Section 2.11 shall no longer be applicable
to the Securities of such series and the Company will execute, and subject to Section 2.04, the
Trustee will authenticate and deliver the Securities of such series in definitive registered form
without coupons, in authorized denominations, and in an aggregate principal amount equal to the
principal amount of the Global Security of such series in exchange for such Global Security. In
addition, the Company may at any time determine that the Securities of any series shall no longer
be represented by a Global Security and that the provisions of this Section 2.11 shall no longer
apply to the Securities of such series. In such event the Company will execute and, subject to
Section 2.04, the Trustee, upon receipt of an Officers’ Certificate evidencing such determination
by the Company, will authenticate and deliver the Securities of such series in definitive
registered form without coupons, in authorized denominations, and in an aggregate principal amount
equal to the principal amount of the Global Security of such series in exchange for such Global
Security. Upon the exchange of the Global Security for such Securities in definitive registered
form without coupons, in authorized denominations, the Global Security shall be canceled by the
Trustee. Such Securities in definitive registered form issued in exchange for the Global Security
pursuant to this Section 2.11(c) shall be registered in such names and in such authorized
denominations as the Depositary, pursuant to instructions from its direct or indirect participants
or otherwise, shall instruct the Trustee. The Trustee shall deliver such Securities to the
Depositary for delivery to the Persons in whose names such Securities are so registered.

ARTICLE 3

REDEMPTION OF SECURITIES AND SINKING FUND PROVISIONS

3.01 Redemption. The Company may redeem the Securities of any series issued hereunder on and after
the dates and in accordance with the terms established for such series pursuant to Section 2.01
hereof.

3.02 Notice Of Redemption.

     (a) In case the Company shall desire to exercise such right to redeem all or, as the case may
be, a portion of the Securities of any series in accordance with any right the Company reserved for
itself to do so pursuant to Section 2.01 hereof, the Company shall, or shall cause the Trustee to,
give notice of such redemption to holders of the Securities of such series to be redeemed by
mailing, first class postage prepaid, a notice of such redemption not less than 30 days and not
more than 90 days before the date fixed for redemption of that series to such holders at their last
addresses as they shall appear upon the Security Register, unless a shorter period is specified in
the Securities to be redeemed. Any notice that is mailed in the manner herein provided shall be
conclusively presumed to have been duly given, whether or not the registered holder receives the
notice. In any case, failure duly to give such notice to the holder of any Security of any series
designated for redemption in whole or in part, or any defect in the notice, shall not affect the
validity of the proceedings for the redemption of any other Securities of such series or any other
series. In the case of any redemption of Securities prior to the expiration of any restriction on
such redemption provided in the terms of such Securities or elsewhere in this Indenture, the
Company shall furnish the Trustee with an Officers’ Certificate evidencing compliance with any such
restriction.

     Each such notice of redemption shall specify the date fixed for redemption and the redemption
price at which Securities of that series are to be redeemed, and shall state that payment of the
redemption price of such Securities to be redeemed will be made at the office or agency of the
Company in the Borough of Manhattan, the City and State of New York, upon presentation and
surrender of such Securities, that interest accrued to the date fixed for redemption will be paid
as specified in said notice, that from and after said date interest will cease to accrue and that
the redemption is for a sinking fund, if such is the case. If less than all the Securities of a
series are to

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be redeemed, the notice to the holders of Securities of that series to be redeemed in part
shall specify the particular Securities to be so redeemed.

     In case any Security is to be redeemed in part only, the notice that relates to such Security
shall state the portion of the principal amount thereof to be redeemed, and shall state that on and
after the redemption date, upon surrender of such Security, a new Security or Securities of such
series in principal amount equal to the unredeemed portion thereof will be issued.

     (b) If less than all the Securities of a series are to be redeemed, the Company shall give the
Trustee at least 45 days’ notice (unless a shorter notice shall be satisfactory to the Trustee) in
advance of the date fixed for redemption as to the aggregate principal amount of Securities of the
series to be redeemed, and thereupon the Trustee shall select, by lot or in such other manner as it
shall deem appropriate and fair in its discretion and that may provide for the selection of a
portion or portions (equal to one thousand U.S. dollars ($1,000) or any integral multiple thereof)
of the principal amount of such Securities of a denomination larger than $1,000, the Securities to
be redeemed and shall thereafter promptly notify the Company in writing of the numbers of the
Securities to be redeemed, in whole or in part. The Company may, if and whenever it shall so elect,
by delivery of instructions signed on its behalf by an Officer, instruct the Trustee or any paying
agent to call all or any part of the Securities of a particular series for redemption and to give
notice of redemption in the manner set forth in this Section, such notice to be in the name of the
Company or its own name as the Trustee or such paying agent may deem advisable. In any case in
which notice of redemption is to be given by the Trustee or any such paying agent, the Company
shall deliver or cause to be delivered to, or permit to remain with, the Trustee or such paying
agent, as the case may be, such Security Register, transfer books or other records, or suitable
copies or extracts therefrom, sufficient to enable the Trustee or such paying agent to give any
notice by mail that may be required under the provisions of this Section.

3.03 Payment Upon Redemption.

     (a) If the giving of notice of redemption shall have been completed as above provided, the
Securities or portions of Securities of the series to be redeemed specified in such notice shall
become due and payable on the date and at the place stated in such notice at the applicable
redemption price, together with interest accrued to the date fixed for redemption and interest on
such Securities or portions of Securities shall cease to accrue on and after the date fixed for
redemption, unless the Company shall default in the payment of such redemption price and accrued
interest with respect to any such Security or portion thereof. On presentation and surrender of
such Securities on or after the date fixed for redemption at the place of payment specified in the
notice, said Securities shall be paid and redeemed at the applicable redemption price for such
series, together with interest accrued thereon to the date fixed for redemption (but if the date
fixed for redemption is an interest payment date, the interest installment payable on such date
shall be payable to the registered holder at the close of business on the applicable record date
pursuant to Section 2.03).

     (b) Upon presentation of any Security of such series that is to be redeemed in part only, the
Company shall execute and the Trustee shall authenticate and the office or agency where the
Security is presented shall deliver to the holder thereof, at the expense of the Company, a new
Security of the same series of authorized denominations in principal amount equal to the unredeemed
portion of the Security so presented.

3.04 Sinking Fund. The provisions of Sections 3.04, 3.05 and 3.06 shall be applicable to any
sinking fund for the retirement of Securities of a series, except as otherwise specified as
contemplated by Section 2.01 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 3.05.
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.

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3.05 Satisfaction Of Sinking Fund Payments With Securities. The Company (i) may deliver
Outstanding Securities of a series and (ii) may apply as a credit Securities of a series that have
been redeemed either at the election of the Company 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.

3.06 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 Company will deliver to the Trustee an Officers’ Certificate specifying the amount of
the next ensuing sinking fund payment for that series pursuant to the terms of the series, the
portion thereof, if any, that is to be satisfied by delivering and crediting Securities of that
series pursuant to Section 3.05 and the basis for such credit and will, together with such
Officers’ Certificate, 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 3.02 and cause
notice of the redemption thereof to be given in the name of and at the expense of the Company in
the manner provided in Section 3.02. Such notice having been duly given, the redemption of such
Securities shall be made upon the terms and in the manner stated in Section 3.03.

ARTICLE 4

COVENANTS

4.01 Payment Of Principal, Premium And Interest. The Company will duly and punctually pay or cause
to be paid the principal of (and premium, if any) and interest on the Securities of that series at
the time and place and in the manner provided herein and established with respect to such
Securities.

4.02 Maintenance Of Office Or Agency. So long as any series of the Securities remain Outstanding,
the Company agrees to maintain an office or agency in the Borough of Manhattan, the City and State
of New York, with respect to each such series and at such other location or locations as may be
designated as provided in this Section 4.02, where (i) Securities of that series may be presented
for payment, (ii) Securities of that series may be presented as herein above authorized for
registration of transfer and exchange, and (iii) notices and demands to or upon the Company in
respect of the Securities of that series and this Indenture may be given or served, such
designation to continue with respect to such office or agency until the Company shall, by written
notice signed by any officer authorized to sign an Officers’ Certificate and delivered to the
Trustee, designate some other office or agency for such purposes or any of them. If at any time the
Company shall fail to maintain any such required office or agency or shall fail to furnish the
Trustee with the address thereof, such presentations, notices and demands may be made or served at
the Corporate Trust Office of the Trustee, and the Company hereby appoints the Trustee as its agent
to receive all such presentations, notices and demands. The Company initially appoints the
Corporate Trust Office of the Trustee located in the Borough of Manhattan, the City of New York as
its paying agent with respect to the Securities.

4.03 Paying Agents.

     (a) If the Company shall appoint one or more paying agents for all or any series of the
Securities, other than the Trustee, the Company will cause each such paying agent to execute and
deliver to the Trustee an instrument in which such agent shall agree with the Trustee, subject to
the provisions of this Section:

     (1) that it will hold all sums held by it as such agent for the payment of the principal of
(and premium, if any) or interest on the Securities of that series (whether such sums have been
paid to it by the Company or by any other obligor of such Securities) in trust for the benefit of
the Persons entitled thereto;

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     (2) that it will give the Trustee notice of any failure by the Company (or by any other
obligor of such Securities) to make any payment of the principal of (and premium, if any) or
interest on the Securities of that series when the same shall be due and payable;

     (3) that it will, at any time during the continuance of any failure referred to in the
preceding paragraph (a)(2) above, upon the written request of the Trustee, forthwith pay to the
Trustee all sums so held in trust by such paying agent; and

     (4) that it will perform all other duties of paying agent as set forth in this Indenture.

     (b) If the Company shall act as its own paying agent with respect to any series of the
Securities, it will on or before each due date of the principal of (and premium, if any) or
interest on Securities of that series, set aside, segregate and hold in trust for the benefit of
the Persons entitled thereto a sum sufficient to pay such principal (and premium, if any) or
interest so becoming due on Securities of that series until such sums shall be paid to such Persons
or otherwise disposed of as herein provided and will promptly notify the Trustee of such action, or
any failure (by it or any other obligor on such Securities) to take such action. Whenever the
Company shall have one or more paying agents for any series of Securities, it will, prior to each
due date of the principal of (and premium, if any) or interest on any Securities of that series,
deposit with the paying agent a sum sufficient to pay the principal (and premium, if any) or
interest so becoming due, such sum to be held in trust for the benefit of the Persons entitled to
such principal, premium or interest, and (unless such paying agent is the Trustee) the Company will
promptly notify the Trustee of this action or failure so to act.

     (c) Notwithstanding anything in this Section to the contrary, (i) the agreement to hold sums
in trust as provided in this Section is subject to the provisions of Section 11.05, and (ii) the
Company may at any time, for the purpose of obtaining the satisfaction and discharge of this
Indenture or for any other purpose, pay, or direct any paying agent to pay, to the Trustee all sums
held in trust by the Company or such paying agent, such sums to be held by the Trustee upon the
same terms and conditions as those upon which such sums were held by the Company or such paying
agent; and, upon such payment by the Company or any paying agent to the Trustee, the Company or
such paying agent shall be released from all further liability with respect to such money.

4.04 Appointment To Fill Vacancy In Office Of Trustee. The Company, whenever necessary to avoid or
fill a vacancy in the office of Trustee, will appoint, in the manner provided in Section 7.10, a
Trustee, so that there shall at all times be a Trustee hereunder.

4.05 Compliance With Consolidation Provisions. The Company will not, while any of the Securities
remain Outstanding, consolidate with or merge into any other Person, in either case where the
Company is not the survivor of such transaction, or sell or convey all or substantially all of its
property to any other Person unless the provisions of Article Ten hereof are complied with.

ARTICLE 5

SECURITYHOLDERS’ LISTS AND REPORTS BY THE COMPANY AND THE TRUSTEE

5.01 Company To Furnish Trustee Names And Addresses Of Securityholders. The Company will furnish
or cause to be furnished to the Trustee (a) within 15 days after each regular record date (as
defined in Section 2.03) a list, in such form as the Trustee may reasonably require, of the names
and addresses of the holders of each series of Securities as of such regular record date, provided
that the Company shall not be obligated to furnish or cause to furnish such list at any time that
the list shall not differ in any respect from the most recent list furnished to the Trustee by the
Company and (b) at such other times as the Trustee may request in writing within 30 days after the
receipt by the Company 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, in either
case, no such list need be furnished for any series for which the Trustee shall be the Security
Registrar.

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5.02 Preservation Of Information; Communications With Securityholders.

     (a) The Trustee shall preserve, in as current a form as is reasonably practicable, all
information as to the names and addresses of the holders of Securities contained in the most recent
list furnished to it as provided in Section 5.01 and as to the names and addresses of holders of
Securities received by the Trustee in its capacity as Security Registrar (if acting in such
capacity).

     (b) The Trustee may destroy any list furnished to it as provided in Section 5.01 upon receipt
of a new list so furnished.

     (c) Securityholders may communicate as provided in Section 312(b) of the Trust Indenture Act
with other Securityholders with respect to their rights under this Indenture or under the
Securities, and, in connection with any such communications, the Trustee shall satisfy its
obligations under Section 312(b) of the Trust Indenture Act in accordance with the provisions of
Section 312(b) of the Trust Indenture Act.

5.03 Reports By The Company. The Company covenants and agrees to provide a copy to the Trustee,
after the Company is required to file the same with the Securities and Exchange Commission, 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 Securities and Exchange Commission may from time to time by
rules and regulations prescribe) that the Company may be required to file with the Securities and
Exchange Commission pursuant to Section 13 or Section 15(d) of the Exchange Act.

5.04 Reports By The Trustee.

     (a) On or before July 1 in each year in which any of the Securities are Outstanding, the
Trustee shall transmit by mail, first class postage prepaid, to the Securityholders, as their names
and addresses appear upon the Security Register, a brief report dated as of the preceding May 1, if
and to the extent required under Section 313(a) of the Trust Indenture Act.

     (b) The Trustee shall comply with Section 313(b) and 313(c) of the Trust Indenture Act.

     (c) A copy of each such report shall, at the time of such transmission to Securityholders, be
filed by the Trustee with the Company, with each securities exchange upon which any Securities are
listed (if so listed) and also with the Securities and Exchange Commission. The Company agrees to
notify the Trustee when any Securities become listed on any securities exchange.

ARTICLE 6

REMEDIES OF THE TRUSTEE AND SECURITYHOLDERS ON EVENT OF DEFAULT

6.01 Events Of Default.

     (a) Whenever used herein with respect to Securities of a particular series, “Event of Default”
means any one or more of the following events that has occurred and is continuing:

     (1) the Company defaults in the payment of any installment of interest upon any of the
Securities of that series, as and when the same shall become due and payable, and such default
continues for a period of 90 days; provided, however, that a valid extension of an interest payment
period by the Company in accordance with the terms of any indenture supplemental hereto shall not
constitute a default in the payment of interest for this purpose;

     (2) the Company defaults in the payment of the principal of (or premium, if any, on) any of
the Securities of that series as and when the same shall become due and payable whether at
maturity, upon redemption, by declaration or otherwise, or in any payment required by any sinking
or analogous fund established with respect to that series; provided, however, that a valid
extension of the maturity of such Securities in accordance with the terms of any indenture
supplemental hereto shall not constitute a default in the payment of principal or premium, if any;

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     (3) the Company fails to observe or perform any other of its covenants or agreements with
respect to that series contained in this Indenture or otherwise established with respect to that
series of Securities pursuant to Section 2.01 hereof (other than a covenant or agreement that has
been expressly included in this Indenture solely for the benefit of one or more series of
Securities other than such series) for a period of 90 days after the date on which written notice
of such failure, requiring the same to be remedied and stating that such notice is a “Notice of
Default” hereunder, shall have been given to the Company by the Trustee, by registered or certified
mail, or to the Company and the Trustee by the holders of at least 25% in principal amount of the
Securities of that series at the time Outstanding;

     (4) the Company pursuant to or within the meaning of any Bankruptcy Law (i) commences a
voluntary case, (ii) consents to the entry of an 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

     (5) a court of competent jurisdiction enters an order under any Bankruptcy Law that (i) is for
relief against the Company in an involuntary case, (ii) appoints a Custodian of the Company for all
or substantially all of its property or (iii) orders the liquidation of the Company, and the order
or decree remains unstayed and in effect for 90 days.

     (b) In each and every such case (other than an Event of Default specified in clause (4) or
clause (5) above), unless the principal of all the Securities of that series shall have already
become due and payable, either the Trustee or the holders of not less than 25% in aggregate
principal amount of the Securities of that series then Outstanding hereunder, by notice in writing
to the Company (and to the Trustee if given by such Securityholders), may declare the principal of
(and premium, if any, on) and accrued and unpaid interest on all the Securities of that series to
be due and payable immediately, and upon any such declaration the same shall become and shall be
immediately due and payable. If an Event of Default specified in clause (4) or clause (5) above
occurs, the principal of and accrued and unpaid interest on all the Securities of that series shall
automatically be immediately due and payable without any declaration or other act on the part of
the Trustee or the holders of the Securities.

     (c) At any time after the principal of (and premium, if any, on) and accrued and unpaid
interest on the Securities of that series shall have been so declared due and payable, and before
any judgment or decree for the payment of the moneys due shall have been obtained or entered as
hereinafter provided, the holders of a majority in aggregate principal amount of the Securities of
that series then Outstanding hereunder, by written notice to the Company and the Trustee, may
rescind and annul such declaration and its consequences if: (i) the Company has paid or deposited
with the Trustee a sum sufficient to pay all matured installments of interest upon all the
Securities of that series and the principal of (and premium, if any, on) any and all Securities of
that series that shall have become due otherwise than by acceleration (with interest upon such
principal and premium, if any, and, to the extent that such payment is enforceable under applicable
law, upon overdue installments of interest, at the rate per annum expressed in the Securities of
that series to the date of such payment or deposit) and the amount payable to the Trustee under
Section 7.06, and (ii) any and all Events of Default under the Indenture with respect to such
series, other than the nonpayment of principal on (and premium, if any, on) and accrued and unpaid
interest on Securities of that series that shall not have become due by their terms, shall have
been remedied or waived as provided in Section 6.06.

     No such rescission and annulment shall extend to or shall affect any subsequent default or
impair any right consequent thereon.

     (d) In case the Trustee shall have proceeded to enforce any right with respect to Securities
of that series under this Indenture and such proceedings shall have been discontinued or abandoned
because of such rescission or annulment or for any other reason or shall have been determined
adversely to the Trustee, then and in every such case, subject to any determination in such
proceedings, the Company and the Trustee shall be restored respectively to their former positions
and rights hereunder, and all rights, remedies and powers of the Company and the Trustee shall
continue as though no such proceedings had been taken.

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6.02 Collection Of Indebtedness And Suits For Enforcement By Trustee.

     (a) The Company covenants that (i) in case it shall default in the payment of any installment
of interest on any of the Securities of a series, or in any payment required by any sinking or
analogous fund established with respect to that series as and when the same shall have become due
and payable, and such default shall have continued for a period of 90 Business Days, or (ii) in
case it shall default in the payment of the principal of (or premium, if any, on) any of the
Securities of a series when the same shall have become due and payable, whether upon maturity of
the Securities of a series or upon redemption or upon declaration or otherwise then, upon demand of
the Trustee, the Company will pay to the Trustee, for the benefit of the holders of the Securities
of that series, the whole amount that then shall have been become due and payable on all such
Securities for principal (and premium, if any) or interest, or both, as the case may be, with
interest upon the overdue principal (and premium, if any) and (to the extent that payment of such
interest is enforceable under applicable law) upon overdue installments of interest at the rate per
annum expressed in the Securities of that series; and, in addition thereto, such further amount as
shall be sufficient to cover the costs and expenses of collection, and the amount payable to the
Trustee under Section 7.06.

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

     (c) In case of any receivership, insolvency, liquidation, bankruptcy, reorganization,
readjustment, arrangement, composition or judicial proceedings affecting the Company, or its
creditors or property, the Trustee shall have power to intervene in such proceedings and take any
action therein that may be permitted by the court and shall (except as may be otherwise provided by
law) be entitled to file such proofs of claim and other papers and documents as may be necessary or
advisable in order to have the claims of the Trustee and of the holders of Securities of such
series allowed for the entire amount due and payable by the Company under the Indenture at the date
of institution of such proceedings and for any additional amount that may become due and payable by
the Company after such date, and to collect and receive any moneys or other property payable or
deliverable on any such claim, and to distribute the same after the deduction of the amount payable
to the Trustee under Section 7.06; and any receiver, assignee or trustee in bankruptcy or
reorganization is hereby authorized by each of the holders of Securities of such series to make
such payments to the Trustee, and, in the event that the Trustee shall consent to the making of
such payments directly to such Securityholders, to pay to the Trustee any amount due it under
Section 7.06.

     (d) All rights of action and of asserting claims under this Indenture, or under any of the
terms established with respect to Securities of that series, may be enforced by the Trustee without
the possession of any of such Securities, or the production thereof at any trial or other
proceeding relative thereto, and any such suit or proceeding instituted by the Trustee shall be
brought in its own name as trustee of an express trust, and any recovery of judgment shall, after
provision for payment to the Trustee of any amounts due under Section 7.06, be for the ratable
benefit of the holders of the Securities of such series.

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

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

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6.03 Application Of Moneys Collected. Any moneys collected by the Trustee pursuant to this Article
with respect to a particular series of Securities shall be applied in the following order, at the
date or dates fixed by the Trustee and, in case of the distribution of such moneys on account of
principal (or premium, if any) or interest, upon presentation of the Securities of that series, and
notation thereon of the payment, if only partially paid, and upon surrender thereof if fully paid:

     FIRST: To the payment of reasonable costs and expenses of collection and of all amounts
payable to the Trustee under Section 7.06;

     SECOND: To the payment of the amounts then due and unpaid upon Securities of such series for
principal (and premium, if any) and interest, 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 premium, if any) and interest,
respectively; and

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

6.04 Limitation On Suits. No holder of any Security of any series shall have any right by virtue
or by availing of any provision of this Indenture to institute any suit, action or proceeding in
equity or at law upon or under or with respect to this Indenture or for the appointment of a
receiver or trustee, or for any other remedy hereunder, unless (i) such holder previously shall
have given to the Trustee written notice of an Event of Default and of the continuance thereof with
respect to the Securities of such series specifying such Event of Default, as hereinbefore
provided; (ii) the holders of not less than 25% in aggregate principal amount of the Securities of
such series then Outstanding shall have made written request upon the Trustee to institute such
action, suit or proceeding in its own name as Trustee hereunder; (iii) such holder or holders shall
have offered to the Trustee such reasonable indemnity as it may require against the costs, expenses
and liabilities to be incurred therein or thereby; (iv) the Trustee for 90 days after its receipt
of such notice, request and offer of indemnity, shall have failed to institute any such action,
suit or proceeding; and (v) during such 90 day period, the holders of a majority in principal
amount of the Securities of that series do not give the Trustee a direction inconsistent with the
request.

     Notwithstanding anything contained herein to the contrary or any other provisions of this
Indenture, the right of any holder of any Security to receive payment of the principal of (and
premium, if any) and interest on such Security, as therein provided, on or after the respective due
dates expressed in such Security (or in the case of redemption, on the redemption date), or to
institute suit for the enforcement of any such payment on or after such respective dates or
redemption date, shall not be impaired or affected without the consent of such holder and by
accepting a Security hereunder it is expressly understood, intended and covenanted by the taker and
holder of every Security of such series with every other such taker and holder and the Trustee,
that no one or more holders of Securities of such series shall have any right in any manner
whatsoever by virtue or by availing of any provision of this Indenture to affect, disturb or
prejudice the rights of the holders of any other of such Securities, or to obtain or seek to obtain
priority over or preference to any other such holder, or to enforce any right under this Indenture,
except in the manner herein provided and for the equal, ratable and common benefit of all holders
of Securities of such series. For the protection and enforcement of the provisions of this Section,
each and every Securityholder and the Trustee shall be entitled to such relief as can be given
either at law or in equity.

6.05 Rights And Remedies Cumulative; Delay Or Omission Not Waiver.

     (a) Except as otherwise provided in Section 2.07, all powers and remedies given by this
Article to the Trustee or to the Securityholders shall, to the extent permitted by law, be deemed
cumulative and not exclusive of any other powers and remedies available to the Trustee or the
holders of the Securities, by judicial proceedings or otherwise, to enforce the performance or
observance of the covenants and agreements contained in this Indenture or otherwise established
with respect to such Securities.

     (b) No delay or omission of the Trustee or of any holder of any of the Securities to exercise
any right or power accruing upon any Event of Default occurring and continuing as aforesaid shall
impair any such right or power, or shall be construed to be a waiver of any such default or an
acquiescence therein; and, subject to the provisions of Section 6.04, every power and remedy given
by this Article or by law to the Trustee or the

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Securityholders may be exercised from time to time, and as often as shall be deemed expedient,
by the Trustee or by the Securityholders.

6.06 Control By Securityholders. The holders of a majority in aggregate principal amount of the
Securities of any series at the time Outstanding, determined in accordance with Section 8.04, shall
have the right to direct the time, method and place of conducting any proceeding for any remedy
available to the Trustee, or exercising any trust or power conferred on the Trustee with respect to
such series; provided, however, that such direction shall not be in conflict with any rule of law
or with this Indenture. Subject to the provisions of Section 7.01, the Trustee shall have the right
to decline to follow any such direction if the Trustee in good faith shall, by a Responsible
Officer or officers of the Trustee, determine that the proceeding so directed, subject to the
Trustee’s duties under the Trust Indenture Act, would involve the Trustee in personal liability or
might be unduly prejudicial to the Securityholders not involved in the proceeding. The holders of a
majority in aggregate principal amount of the Securities of any series at the time Outstanding
affected thereby, determined in accordance with Section 8.04, may on behalf of the holders of all
of the Securities of such series waive any past default in the performance of any of the covenants
contained herein or established pursuant to Section 2.01 with respect to such series and its
consequences, except a default in the payment of the principal of, or premium, if any, or interest
on, any of the Securities of that series as and when the same shall become due by the terms of such
Securities otherwise than by acceleration (unless such default has been cured and a sum sufficient
to pay all matured installments of interest and principal and any premium has been deposited with
the Trustee (in accordance with Section 6.01(c)). Upon any such waiver, the default covered thereby
shall be deemed to be cured for all purposes of this Indenture and the Company, the Trustee and the
holders of the Securities of such series shall be restored to their former positions and rights
hereunder, respectively; but no such waiver shall extend to any subsequent or other default or
impair any right consequent thereon.

6.07 Undertaking To Pay Costs. All parties to this Indenture agree, and each holder of any
Securities 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 or omitted by it as Trustee, the
filing by any party litigant in such suit of an undertaking to pay the costs of such suit, and that
such court may in its discretion assess reasonable costs, including reasonable attorneys’ fees,
against any party litigant in such suit, having due regard to the merits and good faith of the
claims or defenses made by such party litigant; but the provisions of this Section shall not apply
to any suit instituted by the Trustee, to any suit instituted by any Securityholder, or group of
Securityholders, holding more than 10% in aggregate principal amount of the Outstanding Securities
of any series, or to any suit instituted by any Securityholder for the enforcement of the payment
of the principal of (or premium, if any) or interest on any Security of such series, on or after
the respective due dates expressed in such Security or established pursuant to this Indenture.

ARTICLE 7

CONCERNING THE TRUSTEE

7.01 Certain Duties And Responsibilities Of Trustee.

     (a) The Trustee, prior to the occurrence of an Event of Default with respect to the Securities
of a series and after the curing of all Events of Default with respect to the Securities of that
series that may have occurred, shall undertake to perform with respect to the Securities of such
series such duties and only such duties as are specifically set forth in this Indenture, and no
implied covenants shall be read into this Indenture against the Trustee. In case an Event of
Default with respect to the Securities of a series has occurred (that has not been cured or
waived), the Trustee shall exercise with respect to Securities of that series 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.

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

     (i) prior to the occurrence of an Event of Default with respect to the Securities of a series
and after the curing or waiving of all such Events of Default with respect to that series that may
have occurred:

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

     (b) in the absence of bad faith on the part of the Trustee, the Trustee may with respect to
the Securities of such series conclusively rely, as to the truth of the statements and the
correctness of the opinions expressed therein, upon any certificates or opinions furnished to the
Trustee and conforming to the requirements of this Indenture; but in the case of any such
certificates or opinions that 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 or not they
conform to the requirement of this Indenture;

     (ii) the Trustee shall not be liable for any error of judgment made in good faith by a
Responsible Officer or Responsible Officers of the Trustee, 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 not less than a majority in
principal amount of the Securities of any series at the time Outstanding 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 that series; and

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

7.02 Certain Rights Of Trustee. Except as otherwise provided in Section 7.01:

     (a) The Trustee may rely and shall be protected in acting or refraining from acting upon any
resolution, certificate, statement, instrument, opinion, report, notice, request, consent, order,
approval, bond, security 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, direction, order or demand of the Company mentioned herein shall be
sufficiently evidenced by a Board Resolution or an instrument signed in the name of the Company by
any authorized officer of the Company (unless other evidence in respect thereof is specifically
prescribed herein);

     (c) The Trustee may consult with counsel and the written advice of such counsel or any Opinion
of Counsel shall be full and complete authorization and protection in respect of any action taken
or suffered or omitted hereunder in good faith and in reliance thereon;

     (d) The Trustee shall be under no obligation to exercise any of the rights or powers vested in
it by this Indenture at the request, order or direction of any of the Securityholders pursuant to
the provisions of this Indenture, unless such Securityholders shall have offered to the Trustee
reasonable security or indemnity against the costs, expenses and liabilities that may be incurred
therein or thereby; nothing contained herein shall, however, relieve the Trustee of the obligation,
upon the occurrence of an Event of Default with respect to a series of the Securities (that has not
been cured or waived), to exercise with respect to Securities of that series such of the rights and
powers vested in it by this Indenture, and to 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;

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

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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, consent,
order, approval, bond, security, or other papers or documents, unless requested in writing so to do
by the holders of not less than a majority in principal amount of the Outstanding Securities of the
particular series affected thereby (determined as provided in Section 8.04); provided, however,
that if the payment within a reasonable time to the Trustee of the costs, expenses or liabilities
likely to be incurred by it in the making of such investigation is, in the opinion of the Trustee,
not reasonably assured to the Trustee by the security afforded to it by the terms of this
Indenture, the Trustee may require reasonable indemnity against such costs, expenses or liabilities
as a condition to so proceeding. The reasonable expense of every such examination shall be paid by
the Company or, if paid by the Trustee, shall be repaid by the Company upon demand; and

     (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.

     In addition, the Trustee shall not be deemed to have knowledge of any Default or Event of
Default except (1) any Event of Default occurring pursuant to Sections 6.01(a)(1), 6.01(a)(2) and
4.01 hereof or (2) any Default or Event of Default of which the Trustee shall have received written
notification in the manner set forth in this Indenture or a Responsible Officer of the Trustee
shall have obtained actual knowledge. Delivery of reports, information and documents to the Trustee
under Section 5.03 is for informational purposes only and the information and the Trustee’s receipt
of the foregoing shall not constitute constructive notice of any information contained therein, or
determinable from information contained therein including the Company’s compliance with any of
their covenants thereunder (as to which the Trustee is entitled to rely exclusively on an Officers’
Certificate).

7.03 Trustee Not Responsible For Recitals Or Issuance Or Securities.

     (a) The recitals contained herein and in the Securities shall be taken as the statements of
the Company, and the Trustee assumes no responsibility for the correctness of the same.

     (b) The Trustee makes no representations as to the validity or sufficiency of this Indenture
or of the Securities.

     (c) The Trustee shall not be accountable for the use or application by the Company of any of
the Securities or of the proceeds of such Securities, or for the use or application of any moneys
paid over by the Trustee in accordance with any provision of this Indenture or established pursuant
to Section 2.01, or for the use or application of any moneys received by any paying agent other
than the Trustee.

7.04 May Hold Securities. The Trustee or any paying agent or Security Registrar, in its individual
or any other capacity, may become the owner or pledgee of Securities with the same rights it would
have if it were not Trustee, paying agent or Security Registrar.

7.05 Moneys Held In Trust. Subject to the provisions of Section 11.05, all moneys received by the
Trustee shall, until used or applied as herein provided, be held in trust for the purposes for
which they were received, but 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 moneys received by it hereunder
except such as it may agree with the Company to pay thereon.

7.06 Compensation And Reimbursement.

     (a) The Company covenants and agrees to pay to the Trustee, and the Trustee shall be entitled
to, such reasonable compensation (which shall not be limited by any provision of law in regard to
the compensation of a trustee of an express trust) as the Company and the Trustee may from time to
time agree in writing, for all services rendered by it in the execution of the trusts hereby created and in the exercise and
performance of any of the powers and duties hereunder of the Trustee, and, except as otherwise
expressly provided herein, the Company will pay or reimburse the Trustee upon its request for all
reasonable expenses, disbursements and advances incurred or made by the Trustee in accordance with
any of the provisions of this Indenture (including the reasonable compensation and

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the expenses and disbursements of its counsel and of all Persons not regularly in its employ), except any such
expense, disbursement or advance as may arise from its negligence or bad faith and except as the
Company and Trustee may from time to time agree in writing. The Company also covenants to indemnify
the Trustee (and its officers, agents, directors and employees) for, and to hold it harmless
against, any loss, liability or expense incurred without negligence or bad faith on the part of the
Trustee and arising out of or in connection with the acceptance or administration of this trust,
including the reasonable costs and expenses of defending itself against any claim of liability in
the premises.

     (b) The obligations of the Company under this Section to compensate and indemnify the Trustee
and to pay or reimburse the Trustee for reasonable expenses, disbursements and advances shall
constitute additional indebtedness hereunder. Such additional indebtedness shall be secured by a
lien prior to that of the Securities upon all property and funds held or collected by the Trustee
as such, except funds held in trust for the benefit of the holders of particular Securities.

7.07 Reliance On Officers’ Certificate. Except as otherwise provided in Section 7.01, whenever in
the administration of the provisions of this Indenture the Trustee shall deem it reasonably
necessary or desirable that a matter be proved or established prior to taking or suffering or
omitting to take any action hereunder, such matter (unless other evidence in respect thereof be
herein specifically prescribed) may, in the absence of negligence or bad faith on the part of the
Trustee, be deemed to be conclusively proved and established by an Officers’ Certificate delivered
to the Trustee and such certificate, in the absence of negligence or bad faith on the part of the
Trustee, shall be full warrant to the Trustee for any action taken, suffered or omitted to be taken
by it under the provisions of this Indenture upon the faith thereof.

7.08 Disqualification; Conflicting Interests. If the Trustee has or shall acquire any “conflicting
interest” within the meaning of Section 310(b) of the Trust Indenture Act, the Trustee and the
Company shall in all respects comply with the provisions of Section 310(b) of the Trust Indenture
Act.

7.09 Corporate Trustee Required; Eligibility. There shall at all times be a Trustee with respect
to the Securities issued hereunder which shall at all times be a corporation organized and doing
business under the laws of the United States of America or any state or territory thereof or of the
District of Columbia, or a corporation or other Person permitted to act as trustee by the
Securities and Exchange Commission, authorized under such laws to exercise corporate trust powers,
having a combined capital and surplus of at least fifty million U.S. dollars ($50,000,000), and
subject to supervision or examination by federal, state, territorial, or District of Columbia
authority.

     If such corporation or other Person publishes reports of condition at least annually, pursuant
to law or to the requirements of the aforesaid supervising or examining authority, then for the
purposes of this Section, the combined capital and surplus of such corporation or other Person
shall be deemed to be its combined capital and surplus as set forth in its most recent report of
condition so published. The Company may not, nor may any Person directly or indirectly controlling,
controlled by, or under common control with the Company, serve as Trustee. In case at any time the
Trustee shall cease to be eligible in accordance with the provisions of this Section, the Trustee
shall resign immediately in the manner and with the effect specified in Section 7.10.

7.10 Resignation And Removal; Appointment Of Successor.

     (a) The Trustee or any successor hereafter appointed may at any time resign with respect to
the Securities of one or more series by giving written notice thereof to the Company and by
transmitting notice of resignation by mail, first class postage prepaid, to the Securityholders of
such series, as their names and addresses appear upon the Security Register. Upon receiving such
notice of resignation, the Company shall promptly appoint a successor trustee with respect to
Securities of such series by written instrument, in duplicate, executed by order of the Board of
Directors, one copy of which instrument shall be delivered to the resigning Trustee and one copy to
the successor trustee. If no successor trustee shall have been so appointed and have accepted
appointment within 30 days after the mailing 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
Securities of such series, or any Securityholder of that series who has been a bona fide holder of
a Security or Securities for at least six months may on behalf of

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himself and all others similarly situated, petition any such court for the appointment of a successor trustee. Such court may
thereupon after such notice, if any, as it may deem proper and prescribe, appoint a successor
trustee.

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

     (i) the Trustee shall fail to comply with the provisions of Section 7.08 after written request
therefor by the Company or by any Securityholder who has been a bona fide holder of a Security or
Securities for at least six months; or

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

     (iii) the Trustee shall become incapable of acting, or shall be adjudged a bankrupt or
insolvent, or commence a voluntary bankruptcy proceeding, or a receiver of the Trustee or of its
property shall be appointed or consented to, or any public officer shall take charge or control of
the Trustee or of its property or affairs for the purpose of rehabilitation, conservation or
liquidation; then, in any such case, the Company may remove the Trustee with respect to all
Securities and appoint a successor trustee by written instrument, in duplicate, executed by order
of the Board of Directors, one copy of which instrument shall be delivered to the Trustee so
removed and one copy to the successor trustee, or any Securityholder who has been a bona fide
holder of a Security or Securities for at least six months may, on behalf of that holder and all
others similarly situated, petition any court of competent jurisdiction for the removal of the
Trustee and the appointment of a successor trustee. Such court may thereupon after such notice, if
any, as it may deem proper and prescribe, remove the Trustee and appoint a successor trustee.

     (c) The holders of a majority in aggregate principal amount of the Securities of any series at
the time Outstanding may at any time remove the Trustee with respect to such series by so notifying
the Trustee and the Company and may appoint a successor Trustee for such series with the consent of
the Company.

     (d) Any resignation or removal of the Trustee and appointment of a successor trustee with
respect to the Securities of a series pursuant to any of the provisions of this Section shall
become effective upon acceptance of appointment by the successor trustee as provided in Section
7.11.

     (e) Any successor trustee appointed pursuant to this Section may be appointed with respect to
the Securities of one or more series or all of such series, and at any time there shall be only one
Trustee with respect to the Securities of any particular series.

7.11 Acceptance Of Appointment By Successor.

     (a) In case of the appointment hereunder of a successor trustee with respect to all
Securities, every such successor trustee so appointed shall execute, acknowledge and deliver to the
Company 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 the Company 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.

     (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 Company, 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) 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 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

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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, 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 that no Trustee shall be responsible for any
act or failure to act on the part of any other Trustee hereunder; 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, such retiring Trustee shall with respect to the
Securities of that or those series to which the appointment of such successor trustee relates have
no further responsibility for the exercise of rights and powers or for the performance of the
duties and obligations vested in the Trustee under this Indenture, 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 the Company or any
successor trustee, such retiring Trustee shall duly assign, transfer and deliver to such successor
trustee, to the extent contemplated by such supplemental indenture, the property and money held by
such retiring Trustee hereunder with respect to the Securities of that or those series to which the
appointment of such successor trustee relates.

     (c) Upon request of any such successor trustee, the Company 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.

     (e) Upon acceptance of appointment by a successor trustee as provided in this Section, the
Company shall transmit notice of the succession of such trustee hereunder by mail, first class
postage prepaid, to the Securityholders, as their names and addresses appear upon the Security
Register. If the Company fails to transmit such notice within ten days after acceptance of
appointment by the successor trustee, the successor trustee shall cause such notice to be
transmitted at the expense of the Company.

7.12 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 the corporate trust business of the Trustee, shall be the successor
of the Trustee hereunder, provided that such corporation shall be qualified under the provisions of
Section 7.08 and eligible under the provisions of Section 7.09, without the execution or filing of
any paper or any further act on the part of any of the parties hereto, anything herein to the
contrary notwithstanding. 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.

7.13 Preferential Collection Of Claims Against The Company. The Trustee shall comply with Section
311(a) of the Trust Indenture Act, excluding any creditor relationship described in Section 311(b)
of the Trust Indenture Act. A Trustee who has resigned or been removed shall be subject to Section
311(a) of the Trust Indenture Act to the extent included therein.

7.14 Notice Of Default. If any Default or any Event of Default occurs and is continuing and if
such Default or Event of Default is known to a Responsible Officer of the Trustee, the Trustee
shall mail to each Securityholder in the manner and to the extent provided in Section 313(c) of the
Trust Indenture Act notice of the Default or Event of Default within 45 days after it occurs,
unless such Default or Event of Default has been cured; provided, however, that, except in the case
of a default in the payment of the principal of (or premium, if any) or interest on any Security,
the Trustee shall be protected in withholding such notice if and so long as the board of directors,
the executive committee or a trust committee of directors and/or Responsible Officers of the
Trustee in good faith determine that the withholding of such notice is in the interest of the
Securityholders.

ARTICLE 8

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CONCERNING THE SECURITYHOLDERS

8.01 Evidence Of Action By Securityholders. Whenever in this Indenture it is provided that the
holders of a majority or specified percentage in aggregate principal amount of the Securities of a
particular series may take any action (including the making of any demand or request, the giving of
any notice, consent or waiver or the taking of any other action), the fact that at the time of
taking any such action the holders of such majority or specified percentage of that series have
joined therein may be evidenced by any instrument or any number of instruments of similar tenor
executed by such holders of Securities of that series in person or by agent or proxy appointed in
writing.

     If the Company shall solicit from the Securityholders of any series any request, demand,
authorization, direction, notice, consent, waiver or other action, the Company may, at its option,
as evidenced by an Officers’ Certificate, fix in advance a record date for such series for the
determination of Securityholders entitled to give such request, demand, authorization, direction,
notice, consent, waiver or other action, but the Company shall have no obligation to do so. If such
a record date is fixed, such request, demand, authorization, direction, notice, consent, waiver or
other action may be given before or after the record date, but only the Securityholders of record
at the close of business on the record date shall be deemed to be Securityholders for the purposes
of determining whether Securityholders of the requisite proportion of Outstanding Securities of
that series have authorized or agreed or consented to such request, demand, authorization,
direction, notice, consent, waiver or other action, and for that purpose the Outstanding Securities
of that series shall be computed as of the record date; provided, however, that no such
authorization, agreement or consent by such Securityholders on the record date shall be deemed
effective unless it shall become effective pursuant to the provisions of this Indenture not later
than six months after the record date.

8.02 Proof Of Execution By Securityholders. Subject to the provisions of Section 7.01, proof of
the execution of any instrument by a Securityholder (such proof will not require notarization) or
his agent or proxy and proof of the holding by any Person of any of the Securities shall be
sufficient if made in the following manner:

     (a) The fact and date of the execution by any such Person of any instrument may be proved in
any reasonable manner acceptable to the Trustee.

     (b) The ownership of Securities shall be proved by the Security Register of such Securities or
by a certificate of the Security Registrar thereof.

     The Trustee may require such additional proof of any matter referred to in this Section as it
shall deem necessary.

8.03 Who May Be Deemed Owners. Prior to the due presentment for registration of transfer of any
Security, the Company, the Trustee, any paying agent and any Security Registrar may deem and treat
the Person in whose name such Security shall be registered upon the books of the Company as the
absolute owner of such Security (whether or not such Security shall be overdue and notwithstanding
any notice of ownership or writing thereon made by anyone other than the Security Registrar) for
the purpose of receiving payment of or on account of the principal of, premium, if any, and
(subject to Section 2.03) interest on such Security and for all other purposes; and neither the
Company nor the Trustee nor any paying agent nor any Security Registrar shall be affected by any
notice to the contrary.

8.04 Certain Securities Owned By Company Disregarded. In determining whether the holders of the
requisite aggregate principal amount of Securities of a particular series have concurred in any
direction, consent or waiver under this Indenture, the Securities of that series that are owned by
the Company or any other obligor on the Securities of that series or by any Person directly or
indirectly controlling or controlled by or under common control with the Company or any other
obligor on the Securities of that series shall be disregarded and deemed not to be Outstanding for
the purpose of any such determination, except that for the purpose of determining whether the
Trustee shall be protected in relying on any such direction, consent or waiver, only Securities of
such series that the Trustee actually knows are so owned shall be so disregarded. The Securities so
owned that have been pledged in good faith may be regarded as Outstanding for the purposes of this Section, if the pledgee shall
establish to the satisfaction of the Trustee the pledgee’s right so to act with respect to such
Securities and that the pledgee is not a

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Person directly or indirectly controlling or controlled by or under direct or indirect common control with the Company or any such other obligor. In case of a
dispute as to such right, any decision by the Trustee taken upon the advice of counsel shall be
full protection to the Trustee.

8.05 Actions Binding On Future Securityholders. At any time prior to (but not after) the
evidencing to the Trustee, as provided in Section 8.01, of the taking of any action by the holders
of the majority or percentage in aggregate principal amount of the Securities of a particular
series specified in this Indenture in connection with such action, any holder of a Security of that
series that is shown by the evidence to be included in the Securities the holders of which have
consented to such action may, by filing written notice with the Trustee, and upon proof of holding
as provided in Section 8.02, revoke such action so far as concerns such Security. Except as
aforesaid any such action taken by the holder of any Security shall be conclusive and binding upon
such holder and upon all future holders and owners of such Security, and of any Security issued in
exchange therefor, on registration of transfer thereof or in place thereof, irrespective of whether
or not any notation in regard thereto is made upon such Security. Any action taken by the holders
of the majority or percentage in aggregate principal amount of the Securities of a particular
series specified in this Indenture in connection with such action shall be conclusively binding
upon the Company, the Trustee and the holders of all the Securities of that series.

ARTICLE 9

SUPPLEMENTAL INDENTURES

9.01 Supplemental Indentures Without The Consent Of Securityholders. In addition to any
supplemental indenture otherwise authorized by this Indenture, the Company and the Trustee may from
time to time and at any time enter into an indenture or indentures supplemental hereto (which shall
conform to the provisions of the Trust Indenture Act as then in effect), without the consent of the
Securityholders, for one or more of the following purposes:

     (a) to cure any ambiguity, defect, or inconsistency herein or in the Securities of any series;

     (b) to comply with Article Ten;

     (c) to provide for uncertificated Securities in addition to or in place of certificated
Securities;

     (d) to add to the covenants, restrictions, conditions or provisions relating to the Company
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, restrictions, conditions or provisions are expressly being
included solely for the benefit of such series), to make the occurrence, or the occurrence and the
continuance, of a default in any such additional covenants, restrictions, conditions or provisions
an Event of Default, or to surrender any right or power herein conferred upon the Company;

     (e) to add to, delete from, or revise the conditions, limitations, and restrictions on the
authorized amount, terms, or purposes of issue, authentication, and delivery of Securities, as
herein set forth;

     (f) to make any change that does not adversely affect the rights of any Securityholder in any
material respect;

     (g) to provide for the issuance of and establish the form and terms and conditions of the
Securities of any series as provided in Section 2.01, to establish the form of any certifications
required to be furnished pursuant to the terms of this Indenture or any series of Securities, or to
add to the rights of the holders of any series of Securities;

     (h) to evidence and provide for the acceptance of appointment hereunder by a successor
trustee; or

     (i) to comply with any requirements of the Securities and Exchange Commission or any successor
in connection with the qualification of this Indenture under the Trust Indenture Act.

25

 

     The Trustee is hereby authorized to join with the Company in the execution of any such
supplemental indenture, and to make any further appropriate agreements and stipulations that may be
therein contained, but the Trustee shall not be obligated to enter into any such supplemental
indenture that affects the Trustee’s own rights, duties or immunities under this Indenture or
otherwise.

     Any supplemental indenture authorized by the provisions of this Section may be executed by the
Company and the Trustee without the consent of the holders of any of the Securities at the time
Outstanding, notwithstanding any of the provisions of Section 9.02.

9.02 Supplemental Indentures With Consent Of Securityholders. With the consent (evidenced as
provided in Section 8.01) of the holders of not less than a majority in aggregate principal amount
of the Securities of each series affected by such supplemental indenture or indentures at the time
Outstanding, the Company, when authorized by a Board Resolution, and the Trustee may from time to
time and at any time enter into an indenture or indentures supplemental hereto (which shall conform
to the provisions of the Trust Indenture Act as then in effect) for the purpose of adding any
provisions to or changing in any manner or eliminating any of the provisions of this Indenture or
of any supplemental indenture or of modifying in any manner not covered by Section 9.01 the rights
of the holders of the Securities of such series under this Indenture; provided, however, that no
such supplemental indenture shall, without the consent of the holders of each Security then
Outstanding and affected thereby, (a) extend the fixed maturity of any Securities of any series, or
reduce the principal amount thereof, or reduce the rate or extend the time of payment of interest
thereon, or reduce any premium payable upon the redemption thereof or (b) reduce the aforesaid
percentage of Securities, the holders of which are required to consent to any such supplemental
indenture.

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

9.03 Effect Of Supplemental Indentures. Upon the execution of any supplemental indenture pursuant
to the provisions of this Article or of Section 10.01, this Indenture shall, with respect to such
series, be and be deemed to be modified and amended in accordance therewith and the respective
rights, limitations of rights, obligations, duties and immunities under this Indenture of the
Trustee, the Company and the holders of Securities of the series affected thereby shall thereafter
be determined, exercised and enforced hereunder subject in all respects to such modifications and
amendments, and all the terms and conditions of any such supplemental indenture shall be and be
deemed to be part of the terms and conditions of this Indenture for any and all purposes.

9.04 Securities Affected By Supplemental Indentures. Securities of any series affected by a
supplemental indenture, authenticated and delivered after the execution of such supplemental
indenture pursuant to the provisions of this Article or of Section 10.01, may bear a notation in
form approved by the Company, provided such form meets the requirements of any securities exchange
upon which such series may be listed, as to any matter provided for in such supplemental indenture.
If the Company shall so determine, new Securities of that series so modified as to conform, in the
opinion of the Board of Directors, to any modification of this Indenture contained in any such
supplemental indenture may be prepared by the Company, authenticated by the Trustee and delivered
in exchange for the Securities of that series then Outstanding.

9.05 Execution Of Supplemental Indentures. Upon the request of the Company, accompanied by its
Board Resolutions authorizing the execution of any such supplemental indenture, and upon the filing
with the Trustee of evidence of the consent of Securityholders required to consent thereto as
aforesaid, the Trustee shall join with the Company in the execution of such supplemental indenture
unless such supplemental indenture affects the Trustee’s own rights, duties or immunities under
this Indenture or otherwise, in which case the Trustee may in its discretion but shall not be
obligated to enter into such supplemental indenture. The Trustee, subject to the provisions of
Section 7.01, may receive an Officers’ Certificate or an Opinion of Counsel as conclusive evidence
that any supplemental indenture executed pursuant to this Article is authorized or permitted by,
and conforms to, the terms of this Article and that it is proper for the Trustee under the
provisions of this Article to join in the execution thereof; provided, however, that such Officers’ Certificate or Opinion of Counsel need not be provided in
connection with the execution of a supplemental indenture that establishes the terms of a series of
Securities pursuant to Section 2.01 hereof.

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     Promptly after the execution by the Company and the Trustee of any supplemental indenture
pursuant to the provisions of this Section, the Trustee shall transmit by mail, first class postage
prepaid, a notice, setting forth in general terms the substance of such supplemental indenture, to
the Securityholders of all series affected thereby as their names and addresses appear upon the
Security Register. Any failure of the Trustee to mail such notice, or any defect therein, shall
not, however, in any way impair or affect the validity of any such supplemental indenture.

ARTICLE 10

SUCCESSOR ENTITY

10.01 Company May Consolidate, Etc. Except as provided pursuant to Section 4.05 pursuant to a
Board Resolution, and set forth in an Officers’ Certificate, or established in one or more
indentures supplemental to this Indenture, nothing contained in this Indenture shall prevent any
consolidation or merger of the Company with or into any other Person (whether or not affiliated
with the Company) or successive consolidations or mergers in which the Company or its successor or
successors shall be a party or parties, or shall prevent any sale, conveyance, transfer or other
disposition of the property of the Company or its successor or successors as an entirety, or
substantially as an entirety, to any other corporation (whether or not affiliated with the Company
or its successor or successors) authorized to acquire and operate the same; provided, however, the
Company hereby covenants and agrees that, upon any such consolidation or merger (in each case, if
the Company is not the survivor of such transaction), sale, conveyance, transfer or other
disposition, the due and punctual payment of the principal of (premium, if any) and interest on all
of the Securities of all series in accordance with the terms of each series, according to their
tenor, and the due and punctual performance and observance of all the covenants and conditions of
this Indenture with respect to each series or established with respect to such series pursuant to
Section 2.01 to be kept or performed by the Company shall be expressly assumed, by supplemental
indenture (which shall conform to the provisions of the Trust Indenture Act, as then in effect)
reasonably satisfactory in form to the Trustee executed and delivered to the Trustee by the entity
formed by such consolidation, or into which the Company shall have been merged, or by the entity
which shall have acquired such property.

10.02 Successor Entity Substituted.

     (a) In case of any such consolidation, merger, sale, conveyance, transfer or other disposition
and upon the assumption by the successor entity by supplemental indenture, executed and delivered
to the Trustee and satisfactory in form to the Trustee, of the obligations set forth under Section
10.01 on all of the Securities of all series Outstanding, such successor entity shall succeed to
and be substituted for the Company with the same effect as if it had been named as the Company
herein, and thereupon the predecessor corporation shall be relieved of all obligations and
covenants under this Indenture and the Securities.

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

     (c) Nothing contained in this Article shall require any action by the Company in the case of a
consolidation or merger of any Person into the Company where the Company is the survivor of such
transaction, or the acquisition by the Company, by purchase or otherwise, of all or any part of the
property of any other Person (whether or not affiliated with the Company).

10.03 Evidence Of Consolidation, Etc. To Trustee. The Trustee, subject to the provisions of
Section 7.01, may receive an Officers’ Certificate or an Opinion of Counsel as conclusive evidence
that any such consolidation, merger, sale, conveyance, transfer or other disposition, and any such
assumption, comply with the provisions of this Article.

ARTICLE 11

SATISFACTION AND DISCHARGE

27

 

     11.01 Satisfaction And Discharge Of Indenture. If at any time: (a) the Company shall have
delivered to the Trustee for cancellation all Securities of a series theretofore authenticated and
not delivered to the Trustee for cancellation (other than any Securities that shall have been
destroyed, lost or stolen and that shall have been replaced or paid as provided in Section 2.07 and
Securities for whose payment money or Governmental Obligations have theretofore been deposited in
trust or segregated and held in trust by the Company and thereupon repaid to the Company or
discharged from such trust, as provided in Section 11.05); or (b) all such Securities of a
particular series not theretofore delivered to the Trustee for cancellation shall have become due
and payable, or are by their terms to become due and payable within one year or are to be called
for redemption within one year under arrangements satisfactory to the Trustee for the giving of
notice of redemption, and the Company shall deposit or cause to be deposited with the Trustee as
trust funds the entire amount in moneys or Governmental Obligations or a combination thereof,
sufficient in the opinion of a nationally recognized firm of independent public accountants
expressed in a written certification thereof delivered to the Trustee, to pay at maturity or upon
redemption all Securities of that series not theretofore delivered to the Trustee for cancellation,
including principal (and premium, if any) and interest due or to become due to such date of
maturity or date fixed for redemption, as the case may be, and if the Company shall also pay or
cause to be paid all other sums payable hereunder with respect to such series by the Company then
this Indenture shall thereupon cease to be of further effect with respect to such series except for
the provisions of Sections 2.03, 2.05, 2.07, 4.01, 4.02, 4.03 and 7.10, that shall survive until
the date of maturity or redemption date, as the case may be, and Sections 7.06 and 11.05, that
shall survive to such date and thereafter, and the Trustee, on demand of the Company and at the
cost and expense of the Company shall execute proper instruments acknowledging satisfaction of and
discharging this Indenture with respect to such series.

     11.02 Discharge Of Obligations. If at any time all such Securities of a particular series not
heretofore delivered to the Trustee for cancellation or that have not become due and payable as
described in Section 11.01 shall have been paid by the Company by depositing irrevocably with the
Trustee as trust funds moneys or an amount of Governmental Obligations sufficient to pay at
maturity or upon redemption all such Securities of that series not theretofore delivered to the
Trustee for cancellation, including principal (and premium, if any) and interest due or to become
due to such date of maturity or date fixed for redemption, as the case may be, and if the Company
shall also pay or cause to be paid all other sums payable hereunder by the Company with respect to
such series, then after the date such moneys or Governmental Obligations, as the case may be, are
deposited with the Trustee the obligations of the Company under this Indenture with respect to such
series shall cease to be of further effect except for the provisions of Sections 2.03, 2.05, 2.07,
4,01, 4.02, 4,03, 7.06, 7.10 and 11.05 hereof that shall survive until such Securities shall mature
and be paid.

     Thereafter, Sections 7.06 and 11.05 shall survive.

11.03 Deposited Moneys To Be Held In Trust. All moneys or Governmental Obligations deposited with
the Trustee pursuant to Sections 11.01 or 11.02 shall be held in trust and shall be available for
payment as due, either directly or through any paying agent (including the Company acting as its
own paying agent), to the holders of the particular series of Securities for the payment or
redemption of which such moneys or Governmental Obligations have been deposited with the Trustee.

11.04 Payment Of Moneys Held By Paying Agents. In connection with the satisfaction and discharge
of this Indenture all moneys or Governmental Obligations then held by any paying agent under the
provisions of this Indenture shall, upon demand of the Company, be paid to the Trustee and
thereupon such paying agent shall be released from all further liability with respect to such
moneys or Governmental Obligations.

11.05 Repayment To Company. Any moneys or Governmental Obligations deposited with any paying agent
or the Trustee, or then held by the Company, in trust for payment of principal of or premium, if
any, or interest on the Securities of a particular series that are not applied but remain unclaimed
by the holders of such Securities for at least two years after the date upon which the principal of
(and premium, if any) or interest on such Securities shall have respectively become due and
payable, or such other shorter period set forth in applicable escheat or abandoned or unclaimed
property law, shall be repaid to the Company on May 31 of each year or upon the Company’s request or (if then held by the Company) shall be discharged from such trust; and
thereupon the paying agent and the Trustee shall be released from all further liability with
respect to such moneys or Governmental Obligations, and the holder of any of the Securities
entitled to receive such payment shall thereafter, as a general creditor, look only to the Company
for the payment thereof.

28

 

ARTICLE 12

IMMUNITY OF INCORPORATORS, STOCKHOLDERS, OFFICERS

AND DIRECTORS

12.01 No Recourse. No recourse under or upon any obligation, covenant or agreement of this
Indenture, or of any Security, or for any claim based thereon or otherwise in respect thereof,
shall be had against any incorporator, stockholder, officer or director, past, present or future as
such, of the Company or of any predecessor or successor corporation, either directly or through the
Company or any such predecessor or successor corporation, whether by virtue of any constitution,
statute or rule of law, or by the enforcement of any assessment or penalty or otherwise; it being
expressly understood that this Indenture and the obligations issued hereunder are solely corporate
obligations, and that no such personal liability whatever shall attach to, or is or shall be
incurred by, the incorporators, stockholders, officers or directors as such, of the Company or of
any predecessor or successor corporation, or any of them, because of the creation of the
indebtedness hereby authorized, or under or by reason of the obligations, covenants or agreements
contained in this Indenture or in any of the Securities or implied therefrom; and that any and all
such personal liability of every name and nature, either at common law or in equity or by
constitution or statute, of, and any and all such rights and claims against, every such
incorporator, stockholder, officer or director as such, because of the creation of the indebtedness
hereby authorized, or under or by reason of the obligations, covenants or agreements contained in
this Indenture or in any of the Securities or implied therefrom, are hereby expressly waived and
released as a condition of, and as a consideration for, the execution of this Indenture and the
issuance of such Securities.

ARTICLE 13

MISCELLANEOUS PROVISIONS

13.01 Effect On Successors And Assigns. All the covenants, stipulations, promises and agreements
in this Indenture made by or on behalf of the Company shall bind its successors and assigns,
whether so expressed or not.

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

13.03 Surrender Of Company Powers. The Company by instrument in writing executed by authority of
its Board of Directors and delivered to the Trustee may surrender any of the powers reserved to the
Company, and thereupon such power so surrendered shall terminate both as to the Company and as to
any successor corporation.

13.04 Notices. Except as otherwise expressly provided herein, any notice, request or demand that
by any provision of this Indenture is required or permitted to be given, made or served by the
Trustee or by the holders of Securities or by any other Person pursuant to this Indenture to or on
the Company may be given or served by being deposited in first class mail, postage prepaid,
addressed (until another address is filed in writing by the Company with the Trustee), as follows:
25861 Industrial Boulevard, Hayward, California 94545, Attention: Chief Executive Officer. Any
notice, election, request or demand by the Company or any Securityholder or by any other Person
pursuant to this Indenture to or upon the Trustee shall be deemed to have been sufficiently given
or made, for all purposes, if given or made in writing at the Corporate Trust Office of the
Trustee.

13.05 Governing Law. This Indenture and each Security shall be deemed to be a contract made under
the internal laws of the State of New York, and for all purposes shall be construed in accordance
with the laws of said State, except to the extent that the Trust Indenture Act is applicable.

13.06 Treatment Of Securities As Debt. It is intended that the Securities will be treated as
indebtedness and not as equity for federal income tax purposes. The provisions of this Indenture
shall be interpreted to further this intention.

29

 

13.07 Certificates And Opinions As To Conditions Precedent.

     (a) Upon any application or demand by the Company to the Trustee to take any action under any
of the provisions of this Indenture, the Company shall furnish to the Trustee an Officers’
Certificate stating that all conditions precedent provided for in this Indenture (other than the
certificate to be delivered pursuant to Section 13.12) relating to the proposed action have been
complied with and an Opinion of Counsel stating that in the opinion of such counsel all such
conditions precedent have been complied with, except that in the case of any such application or
demand as to which the furnishing of such documents is specifically required by any provision of
this Indenture relating to such particular application or demand, no additional certificate or
opinion need be furnished.

     (b) Each certificate or opinion provided for in this Indenture and delivered to the Trustee
with respect to compliance with a condition or covenant in this Indenture shall include (i) a
statement that the Person making such certificate or opinion has read such covenant or condition;
(ii) 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; (iii) a statement
that, in the opinion of such Person, he has made such examination or investigation as is reasonably
necessary to enable him to express an informed opinion as to whether or not such covenant or
condition has been complied with; and (iv) a statement as to whether or not, in the opinion of such
Person, such condition or covenant has been complied with.

13.08 Payments On Business Days. Except as provided pursuant to Section 2.01 pursuant to a Board
Resolution, and set forth in an Officers’ Certificate, or established in one or more indentures
supplemental to this Indenture, in any case where the date of maturity of interest or principal of
any Security or the date of redemption of any Security shall not be a Business Day, then payment of
interest or principal (and premium, if any) may be made on the next succeeding Business Day with
the same force and effect as if made on the nominal date of maturity or redemption, and no interest
shall accrue for the period after such nominal date.

13.09 Conflict With Trust Indenture Act. If and to the extent that any provision of this Indenture
limits, qualifies or conflicts with the duties imposed by Sections 310 to 317, inclusive, of the
Trust Indenture Act, such imposed duties shall control.

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

13.11 Separability In case any one or more of the provisions contained in this Indenture or in the
Securities of any series shall for any reason be held to be invalid, illegal or unenforceable in
any respect, such invalidity, illegality or unenforceability shall not affect any other provisions
of this Indenture or of such Securities, but this Indenture and such Securities shall be construed
as if such invalid or illegal or unenforceable provision had never been contained herein or
therein.

13.12 Compliance Certificates. The Company shall deliver to the Trustee, within 120 days after the
end of each fiscal year during which any Securities of any series were outstanding, an officer’s
certificate stating whether or not the signers know of any Default or Event of Default that
occurred during such fiscal year. Such certificate shall contain a certification from the principal
executive officer, principal financial officer or principal accounting officer of the Company that
a review has been conducted of the activities of the Company and the Company’s performance under
this Indenture and that the Company has complied with all conditions and covenants under this
Indenture. For purposes of this Section 13.12, such compliance shall be determined without regard
to any period of grace or requirement of notice provided under this Indenture. If the officer of
the Company signing such certificate has knowledge of such a Default or Event of Default, the certificate shall describe any
such Default or Event of Default and its status.

     In Witness Whereof, the parties hereto have caused this Indenture
to be duly executed all as of the day and year first above written.

Solexa, Inc.

30

 

	 	 	 	 	 
	 

	 	 	 	 
	By:
	 	 	 	 
	 

	 	 	 	 
	 
	 	 	 	 
	Name:
	 	 	 	 
	 

	 	 	 	 
	 
	 	 	 	 
	Title:
	 	 	 	 
	 

	 	 	 	 
	 
	 	 	 	 
	[Trustee],
as Trustee	 	 
	 
	 	 	 	 
	By:
	 	 	 	 
	 

	 	 	 	 
	 
	 	 	 	 
	Name:
	 	 	 	 
	 

	 	 	 	 
	 
	 	 	 	 
	Title:
	 	 	 	 
	 

	 	 	 	 

31

 

CROSS-REFERENCE TABLE (1)

	 	 	 	 	 
	SECTION OF TRUST INDENTURE ACT OF 1939,	 	SECTION OF INDENTURE
	AS AMENDED	 	 	 	 
	310(a)

310(b)

	 	 	7.09

7.08	 
	 

	 	 	7.10	 
	310(c)

	 	 	  Inapplicable

	311(a)

	 	 	7.13	 
	311(b)

	 	 	7.13	 
	311(c)

	 	 	  Inapplicable

	312(a)

	 	 	5.01	 
	 

	 	 	5.02	(a)
	312(b)

	 	 	5.02	(c)
	312(c)

	 	 	5.02	(c)
	313(a)

	 	 	5.04	(a)
	313(b)

	 	 	5.04	(b)
	313(c)

	 	 	5.04	(a)
	 

	 	 	5.04	(b)
	313(d)

	 	 	5.04	(c)
	314(a)

	 	 	5.03	 
	 

	 	 	  13.12
	314(b)

	 	 	  Inapplicable

	314(c)

	 	 	  13.07(a)
	314(d)

	 	 	  Inapplicable

	314(e)

	 	 	  13.07(b)
	314(f)

	 	 	  Inapplicable

	315(a)

	 	 	7.01	(a)
	 

	 	 	7.01	(b)
	315(b)

	 	 	7.14	 
	315(c)

	 	 	7.01	 
	315(d)

	 	 	7.01	(b)
	315(e)

	 	 	6.07	 
	316(a)

	 	 	6.06	 
	 

	 	 	8.04	 
	316(b)

	 	 	6.04	 
	316(c)

	 	 	8.01	 
	317(a)

	 	 	6.02	 
	317(b)

	 	 	4.03	 
	318(a)

	 	 	13.09	 

 

			
	(1)	 	This Cross-Reference Table does not constitute part of the Indenture and shall not have any
bearing on the interpretation of any of its terms or provisions.

32

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