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                                                                    Exhibit 10.3

                         RIO VISTA ENERGY PARTNERS L.P.

                           2005 EQUITY INCENTIVE PLAN

1.   PURPOSE

     The purpose of this Rio Vista Energy Partners L.P. Equity Incentive Plan
(the "Plan") is to advance the interests of Rio Vista Energy Partners L.P., a
Delaware limited partnership, and its Subsidiaries (hereinafter collectively
"Rio Vista" or the "Partnership"), by stimulating the efforts of employees
(including employees of the general partner) who are selected to be participants
on behalf of Rio Vista, aligning the long-term interests of participants with
those of unitholders, heightening the desire of participants to continue in
working toward and contributing to the success of Rio Vista, assisting Rio Vista
in competing effectively with other enterprises for the services of new
employees necessary for the continued improvement of operations, and to attract
and retain the best available individuals for service as managers of the General
Partner of the Partnership. This Plan permits the grant of unit options, unit
appreciation rights, restricted unit and phantom units, each of which shall be
subject to such conditions based upon continued employment or service, passage
of time or satisfaction of performance criteria as shall be specified pursuant
to the Plan.

2.   DEFINITIONS

     (a)  "Award" means a unit option, unit appreciation right, restricted unit
or phantom unit granted to a Participant pursuant to the Plan.

     (b)  "Board of Managers" means the Board of Managers Rio Vista GP LLC, the
general partner of the Partnership.

     (c)  "Code" shall mean the Internal Revenue Code of 1986, as such is
amended from time to time, and any reference to a section of the Code shall
include any successor provision of the Code.

     (d)  "Committee" shall mean the committee appointed by the Board of
Managers from among its members to administer the Plan pursuant to Section 3.
Unless otherwise determined by the Board of Managers, the Committee shall be the
Compensation Committee of the Board of Managers.

     (e)  "Exchange Act" shall mean the Securities Exchange Act of 1934, as
amended from time to time, and any reference to a section of the Exchange Act
shall include any successor provision of the Exchange Act.

     (f)  "General Partner" shall mean Rio Vista GP LLC, a Delaware limited
liability company, which is the general partner of the Partnership.

     (g)  "Outside Manager" shall mean a member of the Board of Managers who is
not otherwise an employee of the General Partner or the Partnership.

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     (h)  "Participants" shall mean those individuals to whom Awards have been
granted from time to time and any authorized transferee of such individuals.

     (i)  "Partnership Agreement" means the First Amended and Restated Agreement
of Limited Partnership of Rio Vista Energy Partners L.P., dated as of September
16, 2004, as the same may be amended or restated from time to time.

     (j)  "Performance Award" means an Award that vests only upon the
satisfaction of one or more of the Qualifying Performance Criteria specified in
Section 10(b).

     (k)  "Plan" means this Rio Vista Energy Partners L.P. 2005 Equity Incentive
Plan.

     (l)  "Unit" shall mean a Common Unit of the Partnership as defined in the
Partnership Agreement or the number and kind of units or other securities which
shall be substituted or adjusted for such units as provided in Section 11.

     (m)  "Subsidiary" means any corporation, partnership, limited liability
company or other entity in which Rio Vista Energy Partners L.P. owns or
controls, directly or indirectly, fifty percent (50%) or more of the voting
power or economic interests of such entity.

3.   ADMINISTRATION

     (a)  Composition of Committee. This Plan shall be administered by the
Committee. The Committee shall consist of two or more Outside Managers who shall
be appointed by the Board of Managers. The Board of Managers shall fill
vacancies on the Committee and may from time to time remove or add members of
the Committee. The Board of Managers, in its sole discretion, may exercise any
authority of the Committee under this Plan in lieu of the Committee's exercise
thereof and in such instances references herein to the Committee shall refer to
the Board of Managers.

     (b)  Delegation and Administration. The Committee may delegate to one or
more separate committees (any such committee a "Subcommittee") composed of one
or more managers of the General Partner (who may but need not be members of the
Committee) the ability to grant Awards and take the other actions described in
Section 3(c) with respect to Participants who are not executive officers, and
such actions shall be treated for all purposes as if taken by the Committee. Any
action by any such Subcommittee within the scope of such delegation shall be
deemed for all purposes to have been taken by the Committee and references in
this Plan to the Committee shall include any such Subcommittee. The Committee
may delegate the administration of the Plan to an officer or officers of the
General Partner or the Partnership, and such administrator(s) may have the
authority to adopt and modify the form of Award agreements under this Plan,
execute and distribute Award agreements or other documents evidencing or
relating to Awards granted by the Committee under this Plan, to maintain records
relating to the grant, vesting, exercise, forfeiture or expiration of Awards, to
process or oversee the issuance of Units upon the exercise, vesting and/or
settlement of an Award, to interpret the terms of Awards and to take such other
actions as the Committee may specify, provided that in

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no case shall any such administrator be authorized to grant Awards under the
Plan. Any action by any such administrator within the scope of its delegation
shall be deemed for all purposes to have been taken by the Committee and
references in this Plan to the Committee shall include any such administrator,
provided that the actions and interpretations of any such administrator shall be
subject to review and approval, disapproval or modification by the Committee.

     (c)  Powers of the Committee. Subject to the express provisions and
limitations set forth in this Plan, the Committee shall be authorized and
empowered to do all things necessary or desirable, in its sole discretion, in
connection with the administration of this Plan, including, without limitation,
the following:

          (i)    to prescribe, amend and rescind rules and regulations relating
to this Plan and to define terms not otherwise defined herein;

          (ii)   to determine which persons are Participants, to which of such
Participants, if any, Awards shall be granted hereunder and the timing of any
such Awards, and to grant Awards;

          (iii)  to grant Awards to Participants and determine the terms and
conditions thereof, including the number of Units subject to Awards and the
exercise or purchase price of such Units and the circumstances under which
Awards become exercisable or vested or are forfeited or expire, which terms may
but need not be conditioned upon the passage of time, continued employment or
service, the satisfaction of performance criteria, the occurrence of certain
events, or other factors;

          (iv)   to establish or verify the extent of satisfaction of any
performance goals or other conditions applicable to the grant, issuance,
exercisability, vesting and/or ability to retain any Award;

          (v)    to prescribe and amend the terms of the agreements or other
documents evidencing Awards made under this Plan (which need not be identical);

          (vi)   to determine whether, and the extent to which, adjustments are
required pursuant to Section 11;

          (vii)  to interpret and construe this Plan, any rules and regulations
under this Plan and the terms and conditions of any Award granted hereunder, and
to make exceptions to any such provisions in good faith and for the benefit of
the Partnership; and

          (viii) to make all other determinations deemed necessary or advisable
for the administration of this Plan.

     (d)  Effect of Change in Status. The Committee shall have the discretion to
determine the effect upon an Award and upon an individual's status as an
employee or consultant under the Plan (including whether a Participant shall be
deemed to have experienced a termination of employment or service or other
change in status) and upon the vesting, expiration or forfeiture of

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an Award in the case of (i) any individual who is employed by an entity that
ceases to be a Subsidiary of the Partnership, (ii) any leave of absence approved
by the General Partner, the Partnership or a Subsidiary, (iii) any transfer
between locations of employment or service with the General Partner, the
Partnership or a Subsidiary or between the General Partner, the Partnership and
any Subsidiary or between any Subsidiaries, (iv) any change in the Participant's
status from an employee to a consultant or member of the Board of Managers, or
vice versa, and (v) at the request of the General Partner, the Partnership or a
Subsidiary any employee who becomes employed by any partnership, joint venture,
corporation or other entity not meeting the requirements of a Subsidiary.

     (e)  Determinations of the Committee. All decisions, determinations and
interpretations by the Committee regarding this Plan shall be final and binding
on all Participants. The Committee shall consider such factors as it deems
relevant to making such decisions, determinations and interpretations including,
without limitation, the recommendations or advice of any manager, officer or
employee of the General Partner and such attorneys, consultants and accountants
as it may select. A Participant or other holder of an Award may contest a
decision or action by the Committee with respect to such person or Award only on
the grounds that such decision or action was arbitrary or capricious or was
unlawful, and any review of such decision or action shall be limited to
determining whether the Committee's decision or action was arbitrary or
capricious or was unlawful.

4.   PARTICIPANTS

     Awards under the Plan may be granted to any person who is an employee or
consultant (independent contractor) of the Partnership or the General Partner or
any affiliate of the Partnership or the General Partner. Outside Managers may be
granted Awards only pursuant to Section 8(h) of the Plan. The status of any
person as an employee, consultant or Outside Manager shall be determined by the
Committee.

5.   EFFECTIVE DATE AND EXPIRATION OF PLAN

     (a)  Effective Date. This Plan was approved by the Board of Managers on
March 9, 2005 and became effective on that date.  Under the terms of the
Partnership Agreement and applicable rules of the Nasdaq Stock Market, no
further approval is required.

     (b)  Expiration Date. The Plan shall remain available for the grant of
Awards until March 9, 2015, or such earlier date as the Board of Managers may
determine. The expiration of the Committee's authority to grant Awards under the
Plan will not affect the operation of the terms of the Plan or the Partnership's
and Participants' rights and obligations with respect to Awards granted on or
prior to the expiration date of the Plan.

6.   UNITS SUBJECT TO THE PLAN

     (a)  Aggregate Limits. Subject to adjustment as provided in Section 11, the
aggregate number of Units authorized for issuance as Awards under the Plan is
750,000 (the "Reserve"). The Units subject to the Plan may be either Units
reacquired by the Partnership, including Units

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purchased in the open market, or authorized but unissued Units. Any Units
subject to an Award which for any reason expires or terminates unexercised or is
not earned in full shall be returned to the Reserve and may again be made
subject to an Award under the Plan.

     (b)  Tax Code Limits. The aggregate number of Units subject to Awards under
this Plan during any calendar year to any one Participant shall not exceed
150,000. Notwithstanding anything to the contrary in this Plan, the foregoing
limitation shall be subject to adjustment under Section 11, but only to the
extent that such adjustment will not affect the status of any Award intended to
qualify as "performance-based compensation" under Section 162(m) of the Code.

7.   PLAN AWARDS

     (a)  Award Types. The Committee, on behalf of the General Partner and the
Partnership, is authorized under this Plan to grant, award and enter into the
following arrangements or benefits under the Plan provided that their terms and
conditions are not inconsistent with the provisions of the Plan: unit options,
unit appreciation rights, restricted unit and phantom units. Such arrangements
and benefits are sometimes referred to herein as "Awards." The Committee, in its
discretion, may determine that any Award granted hereunder shall be a
Performance Award.

          (i)    Unit Options. A "Unit Option" is a right to purchase a number
of Units at such exercise price, at such times, and on such other terms and
conditions as are specified in or determined pursuant to the document(s)
evidencing the Award (the "Option Agreement"). All Unit Options granted by the
Committee are nonqualified Unit Options and are not intended to qualify as
incentive stock options pursuant to Section 422 of the Code.

          (ii)   Unit Appreciation Rights. A "Unit Appreciation Right" or "UAR"
is a right to receive, in Units, value with respect to a specific number of
Units equal to or otherwise based on the excess of (i) the market value of a
Unit at the time of exercise over (ii) the exercise price of the right, subject
to such terms and conditions as are expressed in the document(s) evidencing the
Award (the "UAR Agreement").

          (iii)  Restricted Unit. A "Restricted Unit" Award is an award of
Units, the grant, issuance, retention and/or vesting of which is subject to such
conditions as are expressed in the document(s) evidencing the Award (the
"Restricted Unit Agreement").

          (iv)   Phantom Unit. A "Phantom Unit" Award is an award of a right to
receive, in Units the market value of one Unit, the grant, issuance, retention
and/or vesting of which is subject to such conditions as are expressed in the
document(s) evidencing the Award (the "Phantom Unit Agreement").

     (b)  Grants of Awards. An Award may consist of one of the foregoing
arrangements or benefits or two or more of them in tandem or in the alternative.

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8.   GRANT, TERMS AND CONDITIONS OF UNIT OPTIONS AND UARS

     The Committee may grant Unit Options or UARs at any time and from time to
time prior to the expiration of the Plan to eligible Participants selected by
the Committee. No Participant shall have any rights as a unitholder, including
without limitation the right to receive distributions pursuant to the
Partnership Agreement, with respect to any Units subject to Unit Options or UARs
hereunder until said Units have been issued and delivered by the Partnership.
Each Unit Option or UAR shall be evidenced only by such agreements, notices
and/or terms or conditions documented in such form (including by electronic
communications) as may be approved by the Committee. Each Unit Option grant will
expressly identify the Unit Option as a nonqualified Unit Option. Unit Options
or UARs granted pursuant to the Plan need not be identical but each must contain
or be subject to the following terms and conditions:

     (a)  Price. The purchase price (also referred to as the exercise price)
under each Unit Option or UAR granted hereunder shall be established by the
Committee. The purchase price per Unit shall not be less than 100% of the market
value of a Unit on the date of grant. For purposes of the Plan, "market value"
shall mean the average of the high and low sales prices of the Partnership's
common units (or if no sales were reported on such date, the average on the last
preceding day on which a sale was made). The exercise price of a Unit Option
shall be paid in cash or in such other form if and to the extent permitted by
the Committee, including without limitation by delivery of already owned Units
(which have been owned by the Participant for more than six months on the date
of surrender), withholding (either actually or by attestation) of Units
otherwise issuable under such Unit Option and/or by payment under a
broker-assisted sale and remittance program acceptable to the Committee.

     (b)  No Repricing. Other than in connection with a change in the
Partnership's capitalization (as described in Section 11 of the Plan), the
exercise price of an Option or UAR may not be reduced without approval of the
Board of Managers.

     (c)  No Reload Grants. Unit Options shall not be granted under the Plan in
consideration for and shall not be conditioned upon the delivery of Units to the
Partnership in payment of the exercise price and/or tax withholding obligation
under any other employee unit option.

     (d)  Duration, Exercise and Termination of Unit Options and UARs. Each Unit
Option or UAR shall be exercisable at such times and in such installments during
the period prior to the expiration of the Unit Option or UAR as determined by
the Committee. The Committee shall have the right to make the timing of the
ability to exercise any Unit Option or UAR subject to continued employment or
service, the passage of time and/or such performance requirements as deemed
appropriate by the Committee. Without limiting the generality of the foregoing,
the Committee may limit the timing of exercise of Unit Options and UARs, or
limit the issuance and delivery of Units pursuant to such exercise, to specified
annual or quarterly dates in order to minimize accounting expenses associated
with the issuance of additional Units.  At any time after the grant of a Unit
Option, the Committee may reduce or eliminate any restrictions on the
Participant's right to exercise all or part of the Unit Option, subject to
applicable limitations under Section 409A of the Code.

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     Each Unit Option or UAR must expire within a period of not more than ten
(10) years from the grant date. In each case, the Option Agreement or UAR
Agreement may provide for expiration prior to the end of the stated term of the
Award in the event of the termination of employment or service of the
Participant to whom it was granted.

     (e)  Suspension or Termination of Unit Options and UARs. If at any time
(including after a notice of exercise has been delivered) the Committee,
including any Subcommittee or administrator authorized pursuant to Section 3(b)
(any such person, an "Authorized Officer"), reasonably believes that a
Participant has committed an act of misconduct as described in this Section, the
Authorized Officer may suspend the Participant's right to exercise any Unit
Option or UAR pending a determination of whether an act of misconduct has been
committed. If the Committee determines that a Participant has committed an act
of embezzlement, fraud, dishonesty, nonpayment of any obligation owed to Rio
Vista, breach of fiduciary duty or deliberate disregard of Partnership rules
resulting in loss, damage or injury to the Partnership, or if a Participant
makes an unauthorized disclosure of any Partnership trade secret or confidential
information, engages in any conduct constituting unfair competition, induces any
customer to breach a contract with the Partnership or induces any principal for
whom Rio Vista acts as agent to terminate such agency relationship, neither the
Participant nor his or her estate shall be entitled to exercise any Unit Option
or UAR whatsoever. Any determination by the Committee with respect to the
foregoing shall be final, conclusive, and binding on all interested parties. For
any Participant who is an executive officer of the Partnership or the General
Partner or a member of the Board of Managers, the determination of the Committee
shall be subject to the approval of the Board of Managers.

     (f)  Conditions and Restrictions Upon Securities Subject to Unit Options or
UARs. Subject to the express provisions of the Plan, the Committee may provide
that the Units issued upon exercise of a Unit Option or UAR shall be subject to
such further conditions or agreements as the Committee in its discretion may
specify prior to the exercise of such Unit Option or UAR, including without
limitation, conditions on vesting or transferability, forfeiture or repurchase
provisions. The obligation to make payments with respect to UARs shall be
satisfied through the delivery of Units. Subject to applicable limitations under
Section 409A of the Code, the Committee may establish rules for the deferred
delivery of Units upon exercise of a Unit Option or UAR with the deferral
evidenced by use of Phantom Units equal in number to the number of Units whose
delivery is so deferred.

     (g)  Other Terms and Conditions. Unit Options and UARs may also contain
such other provisions, which shall not be inconsistent with any of the foregoing
terms, as the Committee shall deem appropriate.

     (h)  Outside Manager Unit Options. Each Outside Manager shall be granted an
Unit Option (an "Outside Manager Option") once each fiscal year for not more
than 5,000 Units, in an equal amount as determined by the Board of Managers,
provided that if an Outside Manager is elected to begin serving as a manager on
a date not coincident with the grant date for such annual grant, then he or she
will be granted an initial Outside Manager Option as of the date of the first
meeting of the Board of Managers at which he or she serves for a prorated number
of Units

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based on the number of months remaining until the next annual Outside Manager
Option grant. Notwithstanding anything to the contrary in this Plan, the
foregoing limitations shall be subject to adjustment under Section 11. The
number of Units subject to each Outside Manager Option, or the formula pursuant
to which such number shall be determined, the date of grant and the vesting,
expiration and other terms applicable to such Unit Options shall be specified
from time to time by the Board of Managers, subject to the terms of this Plan
applicable to Unit Options in general.

9.   GRANT, TERMS AND CONDITIONS OF RESTRICTED UNITS AND PHANTOM UNITS

     The Committee may grant Restricted Units or Phantom Units at any time and
from time to time prior to the expiration of the Plan to eligible Participants
selected by the Committee. A Participant shall have rights as a unitholder with
respect to any Units subject to a Restricted Unit Award hereunder only to the
extent specified in this Plan or the Restricted Unit Agreement evidencing such
Award. Awards of Restricted Units or Phantom Units shall be evidenced only by
such agreements, notices and/or terms or conditions documented in such form
(including by electronic communications) as may be approved by the Committee.
Awards of Restricted Units or Phantom Units granted pursuant to the Plan need
not be identical but each must contain or be subject to the following terms and
conditions:

     (a)  Terms and Conditions. Each Restricted Unit Agreement and each Phantom
Unit Agreement shall contain provisions regarding (a) the number of Units
subject to such Award or a formula for determining such, (b) the purchase price
of the Units, if any, and the means of payment for the Units, (c) the
performance criteria, if any, and level of achievement versus these criteria
that shall determine the number of Units granted, issued, retainable and/or
vested, (d) such terms and conditions on the grant, issuance, vesting and/or
forfeiture of the Units as may be determined from time to time by the Committee,
(e) restrictions on the transferability of the Units and (f) such further terms
and conditions as may be determined from time to time by the Committee, in each
case not inconsistent with this Plan.

     (b)  Sale Price. Subject to the requirements of applicable law, the
Committee shall determine the price at which Units of Restricted Units or
Phantom Units shall be sold or awarded to a Participant, which price shall not
be less than 100% of the market value of such Units at the date of grant or
issuance.  For purposes of the Plan, "market value" shall mean the average of
the high and low sales prices of the Partnership's common units (or if no sales
were reported on such date, the average on the last preceding day on which a
sale was made).

     (c)  Unit Vesting. The grant, issuance, retention and/or vesting of Units
under Restricted Unit or Phantom Unit Awards shall be at such time and in such
installments as determined by the Committee or under criteria established by the
Committee. The Committee shall have the right to make the timing of the grant
and/or the issuance, ability to retain and/or vesting of Units under Restricted
Unit or Phantom Unit Awards subject to continued employment or service, passage
of time and/or such performance criteria and level of achievement versus these
criteria as deemed appropriate by the Committee, which criteria may be based on
financial performance and/or personal performance evaluations. Notwithstanding

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anything to the contrary herein, the performance criteria for any Restricted
Unit or Phantom Unit that is intended to satisfy the requirements for
"performance-based compensation" under Section 162(m) of the Code shall be a
measure based on one or more Qualifying Performance Criteria selected by the
Committee and specified at the time the Restricted Unit Award is granted.

     (d)  Termination of Employment or Service. The Restricted Unit or Phantom
Unit Agreement may provide for the forfeiture or cancellation of the Restricted
Unit or Phantom Unit Award, in whole or in part, in the event of the termination
of employment or service of the Participant to whom it was granted.

     (e)  Phantom Units. Except to the extent this Plan or the Committee
specifies otherwise, Phantom Units represent an unfunded and unsecured
obligation of the Partnership and do not confer any of the rights of a
unitholder, including without limitation the right to receive distributions
pursuant to the Partnership Agreement, until Units are issued and delivered
thereunder by the Partnership.  Settlement of Phantom Units upon expiration of
the deferral or vesting period shall be made in Units. The number of Units to be
so distributed may be increased by an interest factor or by distribution
equivalents. Until a Phantom Unit is so settled, the number of Units represented
by a Phantom Unit shall be subject to adjustment pursuant to Section 11. Any
Phantom Units that are settled after the Participant's death shall be
distributed to the Participant's designated beneficiary(ies) or, if none was
designated, the Participant's estate.

10.  OTHER PROVISIONS APPLICABLE TO AWARDS

     (a)  Transferability. Unless the agreement or other document evidencing an
Award (or an amendment thereto authorized by the Committee) expressly states
that the Award is transferable as provided hereunder, no Award granted under
this Plan, nor any interest in such Award, may be sold, assigned, conveyed,
gifted, pledged, hypothecated or otherwise transferred in any manner prior to
the vesting or lapse of any and all restrictions applicable thereto, other than
by will or the laws of descent and distribution. The Committee may grant an
Award or amend an outstanding Award to provide that the Award is transferable or
assignable (a) in the case of a transfer without the payment of any
consideration, to any "family member" as such term is defined in Section 1(a)(5)
of the General Instructions to Form S-8 under the Securities Act of 1933 (the
"Securities Act"), as such may be amended from time to time, and (b) in any
transfer described in clause (ii) of Section 1(a)(5) of the General Instructions
to Form S-8 under the Securities Act, as amended from time to time, provided
that following any such transfer or assignment the Award will remain subject to
substantially the same terms applicable to the Award while held by the
Participant to whom it was granted, as modified as the Committee shall determine
appropriate, and as a condition to such transfer the transferee shall execute an
agreement agreeing to be bound by such terms. Any purported assignment, transfer
or encumbrance that does not qualify under this Section 10(a) shall be void and
unenforceable against the Partnership.

     (b)  Qualifying Performance Criteria. For purposes of this Plan, the term
"Qualifying Performance Criteria" shall mean any one or more of the following
performance criteria, either individually, alternatively or in any combination,
applied to either the Partnership as a whole or

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to a business unit or Subsidiary, either individually, alternatively or in any
combination, and measured either annually or cumulatively over a period of
years, on an absolute basis or relative to a pre-established target, to previous
years' results or to a designated comparison group, in each case as specified by
the Committee in the Award: (a) cash flow, (b) earnings per unit, (c) earnings
before interest, taxes, depreciation and amortization, (d) return on equity, (e)
total unitholder return, (f) unit price performance, (g) return on capital, (h)
return on assets or net assets, (i) revenue, (j) income or net income, (k)
operating income or net operating income, (l) operating profit or net operating
profit, (m) operating margin or profit margin, (n) return on operating revenue,
(o) return on invested capital, and (p) market segment unit. The Committee may
appropriately adjust any evaluation of performance under a Qualifying
Performance Criteria to exclude any of the following events that occurs during a
performance period: (i) asset write-downs, (ii) litigation or claim judgments or
settlements, (iii) the effect of changes in tax law, accounting principles or
other such laws or provisions affecting reported results, (iv) accruals for
reorganization and restructuring programs and (v) any extraordinary
non-recurring items as described in Accounting Principles Board Opinion No. 30
and/or in management's discussion and analysis of financial condition and
results of operations appearing in the Partnership's annual report for the
applicable year. Notwithstanding satisfaction of any completion of any
Qualifying Performance Criteria, to the extent specified at the time of grant of
an Award, the number of Units, Unit Options, UARs, Phantom Units or other
benefits granted, issued, retainable and/or vested under an Award on account of
satisfaction of such Qualifying Performance Criteria may be reduced by the
Committee on the basis of such further considerations as the Committee in its
sole discretion shall determine.

     (c)  Distributions. Unless otherwise provided by the Committee, no
adjustment shall be made in Units issuable under Awards on account of cash
distributions that may be paid or other rights that may be issued to the holders
of Units prior to their issuance under any Award. The Committee shall specify
whether distributions or distribution equivalent amounts shall be paid to any
Participant with respect to the Units subject to any Award that have not vested
or been issued or that are subject to any restrictions or conditions on the
record date for distributions.

     (d)  Documents Evidencing Awards. The Committee shall, subject to
applicable law, determine the date an Award is deemed to be granted. The
Committee or, except to the extent prohibited under applicable law, its
delegate(s) may establish the terms of agreements or other documents evidencing
Awards under this Plan and may, but need not, require as a condition to any such
agreement's or document's effectiveness that such agreement or document be
executed by the Participant, including by electronic signature or other
electronic indication of acceptance, and that such Participant agree to such
further terms and conditions as specified in such agreement or document. The
grant of an Award under this Plan shall not confer any rights upon the
Participant holding such Award other than such terms, and subject to such
conditions, as are specified in this Plan as being applicable to such type of
Award (or to all Awards) or as are expressly set forth in the agreement or other
document evidencing such Award.

     (e)  Additional Restrictions on Awards. Either at the time an Award is
granted or by subsequent action, the Committee may, but need not, impose such
restrictions, conditions or limitations as it determines appropriate as to the
timing and manner of any resales by a

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Participant or other subsequent transfers by a Participant of any Units issued
under an Award, including without limitation (a) restrictions under an insider
trading policy, (b) restrictions designed to delay and/or coordinate the timing
and manner of sales by the Participant or Participants, and (c) restrictions as
to the use of a specified brokerage firm for such resales or other transfers.

     (f)  Subsidiary Awards. In the case of a grant of an Award to any
Participant who is an employee or consultant of a Subsidiary, such grant may, if
the Committee so directs, be implemented by Rio Vista issuing the subject Units
to the Subsidiary, for such lawful consideration as the Committee may determine,
upon the condition or understanding that the Subsidiary will transfer the Units
to the Participant in accordance with the terms of the Award specified by the
Committee pursuant to the provisions of the Plan. Notwithstanding any other
provision hereof, such Award may be issued by and in the name of the Subsidiary
and shall be deemed granted on such date as the Committee shall determine.

11.  ADJUSTMENT OF AND CHANGES IN THE COMMON UNITS

     (a)  The existence of outstanding Awards shall not affect in any way the
right or power of the General Partner, the Partnership or its unitholders to
make or authorize any or all adjustments, recapitalizations, reorganizations,
exchanges, or other changes in the Partnership's capital structure or its
business, or any merger or consolidation of the Partnership or any issuance of
Units or other securities or subscription rights thereto, or any issuance of
bonds, debentures, preferred or prior preference unit ahead of or affecting the
Units or other securities of the Partnership or the rights thereof, or the
dissolution or liquidation of the Partnership, or any sale or transfer of all or
any part of its assets or business, or any other corporate act or proceeding,
whether of a similar character or otherwise. Further, except as expressly
provided herein or by the Committee, (i) the issuance by the Partnership of
securities or any class of securities convertible into securities of any class,
for cash, property, labor or services, upon direct sale, upon the exercise of
rights or warrants to subscribe therefor, or upon conversion of securities or
obligations of the Partnership convertible into such securities, (ii) the
payment of a distribution in property other than Units, or (iii) the occurrence
of any similar transaction, and in any case whether or not for fair value, shall
not affect, and no adjustment by reason thereof shall be made with respect to,
the number of Units subject to Unit Options or other Awards theretofore granted
or the purchase price per Unit, unless the Committee shall determine, in its
sole discretion, that an adjustment is necessary or appropriate.

     (b)  If the outstanding Units or other securities of the Partnership, or
both, for which the Award is then exercisable or as to which the Award is to be
settled shall at any time be changed or exchanged by declaration of a unit
distribution, unit split, combination of units, extraordinary distribution of
cash and/or assets, recapitalization, reorganization or any similar event
affecting the Units or other securities of the Partnership, the Committee shall
appropriately and equitably adjust the number and kind of Units or other
securities which are subject to this Plan or subject to any Awards theretofore
granted, and the exercise or settlement prices of such Awards, so as to maintain
the proportionate number of Units or other securities without changing the
aggregate exercise or settlement price.

                                       11
<PAGE>
     (c)  No right to purchase fractional Units shall result from any adjustment
in Unit Options or UARs pursuant to this Section 11. In case of any such
adjustment, the Units subject to the Unit Option or UAR shall be rounded down to
the nearest whole unit.

     (d)  Any other provision hereof to the contrary notwithstanding (except
Section 11(a)), in the event Rio Vista is a party to a merger or other
reorganization, outstanding Awards shall be subject to the agreement of merger
or reorganization.  Such agreement may provide, without limitation, for the
assumption of outstanding Awards by the surviving corporation or its parent, for
their continuation by Rio Vista (if Rio Vista is a surviving entity), and,
subject to applicable limitations under Section 409A of the Code, for
accelerated vesting and accelerated expiration or for settlement in cash.

12.  LISTING OR QUALIFICATION OF COMMON UNITS

     In the event that the Board of Managers determines in its discretion that
the listing or qualification of the Units available for issuance under the Plan
on any securities exchange or quotation or trading system or under any
applicable law or governmental regulation is necessary as a condition to the
issuance of such Units, a Unit Option or UAR may not be exercised in whole or in
part and a Restricted Unit or Phantom Unit Award shall not vest unless such
listing, qualification, consent or approval has been unconditionally obtained.

13.  TERMINATION OR AMENDMENT OF THE PLAN

     The Board of Managers may amend, alter or discontinue the Plan and the
Board or the Committee may to the extent permitted by the Plan amend any
agreement or other document evidencing an Award made under this Plan.

     In addition, no such amendment or alteration shall be made which would
impair the rights of any Participant, without such Participant's consent, under
any Award theretofore granted, provided that no such consent shall be required
with respect to any amendment or alteration if the Committee determines in its
sole discretion that such amendment or alteration either (i) is required or
advisable in order for the Partnership, the Plan or the Award to satisfy any law
or regulation or to meet the requirements of any accounting standard, or (ii) is
not reasonably likely to significantly diminish the benefits provided under such
Award, or that any such diminishment has been adequately compensated.

14.  WITHHOLDING

     To the extent required by applicable federal, state, local or foreign law,
the Committee may and/or a Participant shall make arrangements satisfactory to
the Partnership for the satisfaction of any withholding tax obligations that
arise with respect to any Unit Option, UAR, Restricted Unit or Phantom Unit
Award, or any sale of Units. The Partnership shall not be required to issue
Units or to recognize the disposition of such Units until such obligations are
satisfied. To the extent permitted or required by the Committee, these
obligations may or shall be satisfied by having the Partnership withhold a
portion of the Units of unit that otherwise would

                                       12
<PAGE>
be issued to a Participant under such Award or by tendering Units previously
acquired by the Participant.

15.  GENERAL PROVISIONS

     (a)  Employment At Will. Neither the Plan nor the grant of any Award nor
any action by the General Partner, the Partnership, any Subsidiary or the
Committee shall be held or construed to confer upon any person any right to be
continued in the employ or service of the General Partner, the Partnership or a
Subsidiary. The General Partner, the Partnership and each Subsidiary expressly
reserve the right to discharge, without liability but subject to his or her
rights under this Plan, any Participant whenever in the sole discretion of the
General Partner, the Partnership or a Subsidiary, as the case may be, its
interest may so require.

     (b)  Governing Law. This Plan and any agreements or other documents
hereunder shall be interpreted and construed in accordance with the laws of the
State of Delaware and applicable federal law. The Committee may provide that any
dispute as to any Award shall be presented and determined in such forum as the
Committee may specify, including through binding arbitration. Any reference in
this Plan or in the agreement or other document evidencing any Award to a
provision of law or to a rule or regulation shall be deemed to include any
successor law, rule or regulation of similar effect or applicability.

     (c)  Unfunded Plan. Insofar as it provides for Awards, the Plan shall be
unfunded. Although bookkeeping accounts may be established with respect to
Participants who are granted Awards under this Plan, any such accounts will be
used merely as a bookkeeping convenience. The Partnership shall not be required
to segregate any assets which may at any time be represented by Awards, nor
shall this Plan be construed as providing for such segregation, nor shall the
Partnership or the Committee be deemed to be a trustee of Units to be awarded
under the Plan.

16.  NON-EXCLUSIVITY OF PLAN

     The adoption of this Plan by the Board of Managers shall not be construed
as creating any limitations on the power of the Board of Managers or the
Committee to adopt such other incentive arrangements as either may deem
desirable, including without limitation, the granting of unit options, unit
appreciation rights, restricted unit or phantom units otherwise than under this
Plan, and such arrangements may be either generally applicable or applicable
only in specific cases.

17.  COMPLIANCE WITH OTHER LAWS AND REGULATIONS

     This Plan, the grant and exercise of Awards thereunder, and the obligation
of the Partnership to sell, issue or deliver Units under such Awards, shall be
subject to all applicable federal, state and local laws, rules and regulations
and to such approvals by any governmental or regulatory agency as may be
required. The Partnership shall not be required to register in a Participant's
name or deliver any Units prior to the completion of any registration or
qualification of such Units under any federal, state or local law or any ruling
or regulation of any

                                       13
<PAGE>
government body which the Committee shall determine to be necessary or
advisable. To the extent the Partnership is unable to or the Committee deems it
infeasible to obtain authority from any regulatory body having jurisdiction,
which authority is deemed by the Partnership's counsel to be necessary to the
lawful issuance and sale of any Units hereunder, the Partnership shall be
relieved of any liability with respect to the failure to issue or sell such
Units as to which such requisite authority shall not have been obtained. No Unit
Option shall be exercisable and no Units shall be issued and/or transferable
under any other Award unless a registration statement with respect to the Units
underlying such Unit Option is effective and current or the Partnership has
determined that such registration is unnecessary.

18.  LIABILITY OF PARTNERSHIP

     Neither the General Partner nor the  Partnership shall be liable to a
Participant or other persons as to: (a) the non-issuance or sale of Units as to
which the Partnership has been unable to obtain from any regulatory body having
jurisdiction the authority deemed by the Partnership's counsel to be necessary
to the lawful issuance and sale of any Units hereunder; and (b) any tax
consequence expected, but not realized, by any Participant or other person, or
any unexpected tax consequence to any Participant or other person, due to the
receipt, exercise or settlement of any Unit Option or other Award granted
hereunder.

                                       14<PAGE>
EXHIBIT 4.1

                          ----------------------------

                                    INDENTURE

                            Dated as of May __, 2005,

                                 by and between

                  CONSUMER PORTFOLIO SERVICES, INC., as obligor

                                       and

                     WELLS FARGO BANK, NATIONAL ASSOCIATION,

                   a national banking association, as trustee

                          ----------------------------

                                 $100,000,000.00

                     Renewable Unsecured Subordinated Notes

<PAGE>
<TABLE>
       <c>

                                                              TABLE OF CONTENTS

ARTICLE I DEFINITIONS AND INCORPORATION BY REFERENCE..............................................................1
   Section 1.1       Definitions..................................................................................1
   Section 1.2       Other Definitions............................................................................6
   Section 1.3       Incorporation by Reference of Trust Indenture Act............................................6
   Section 1.4       Rules of Construction........................................................................7
ARTICLE II THE SECURITIES.........................................................................................7
   Section 2.1       Security Terms; Amount; Accounts; Interest; Maturity.........................................7
   Section 2.2       Written Confirmation; Rejection; Rescission.................................................11
   Section 2.3       Registrar and Paying Agent..................................................................11
   Section 2.4       Paying Agent to Hold Money in Trust.........................................................12
   Section 2.5       List of Holders.............................................................................12
   Section 2.6       Transfer and Exchange.......................................................................12
   Section 2.7       Payment of Principal and Interest; Principal and Interest Rights Preserved..................13
   Section 2.8       Outstanding Securities......................................................................14
   Section 2.9       Treasury Securities.........................................................................14
   Section 2.10      Defaulted Interest..........................................................................15
   Section 2.11      Temporary Notes.............................................................................15
   Section 2.12      Execution, Authentication And Delivery......................................................15
   Section 2.13      Book-Entry Registration.....................................................................16
   Section 2.14      Initial and Periodic Statements.............................................................17
   Section 2.15      Appointment of Agents.......................................................................17
ARTICLE III REDEMPTION AND REPURCHASE............................................................................18
   Section 3.1       Redemption of Securities at the Company's Election..........................................18
   Section 3.2       Repurchase of Securities at the Holder's Request............................................18
ARTICLE IV COVENANTS.............................................................................................20
   Section 4.1       Payment of Securities.......................................................................20
   Section 4.2       Maintenance of Office or Agency.............................................................20
   Section 4.3       SEC Reports and Other Reports...............................................................21
   Section 4.4       Compliance Certificate......................................................................22
   Section 4.5       Stay, Extension and Usury Laws..............................................................22
   Section 4.6       Liquidation.................................................................................23
   Section 4.7       Financial Covenants.........................................................................23
   Section 4.8       Restrictions on Dividends and Certain Transactions with Affiliates..........................23
   Section 4.9       Securitization Transactions and Additional Indebtedness.....................................23
ARTICLE V SUCCESSORS.............................................................................................24
   Section 5.1       When the Company May Merge, etc.............................................................24
   Section 5.2       Successor Entity Substituted................................................................24
ARTICLE VI DEFAULTS AND REMEDIES.................................................................................24
   Section 6.1       Events of Default...........................................................................24
   Section 6.2       Acceleration................................................................................25
   Section 6.3       Other Remedies..............................................................................26
   Section 6.4       Waiver of Past Defaults.....................................................................26
   Section 6.5       Control by Majority.........................................................................26
   Section 6.6       Limitation on Suits.........................................................................26
   Section 6.7       Rights of Holders to Receive Payment........................................................27
   Section 6.8       Collection Suit by Trustee..................................................................27

<PAGE>

   Section 6.9       Trustee May File Proofs of Claim............................................................27
   Section 6.10      Priorities..................................................................................28
   Section 6.11      Undertaking for Costs.......................................................................28
ARTICLE VII TRUSTEE..............................................................................................29
   Section 7.1       Duties of Trustee...........................................................................29
   Section 7.2       Rights of Trustee...........................................................................30
   Section 7.3       Individual Rights of Trustee................................................................31
   Section 7.4       Trustee's Disclaimer........................................................................31
   Section 7.5       Notice of Defaults..........................................................................31
   Section 7.6       Reports by Trustee to Holders...............................................................31
   Section 7.7       Compensation and Indemnity..................................................................32
   Section 7.8       Replacement of Trustee......................................................................33
   Section 7.9       Successor Trustee by Merger, etc............................................................34
   Section 7.10      Eligibility; Disqualification...............................................................34
   Section 7.11      Preferential Collection of Claims Against Company...........................................34
ARTICLE VIII DISCHARGE OF INDENTURE..............................................................................34
   Section 8.1       Termination of Company's Obligations........................................................34
   Section 8.2       Application of Trust Money..................................................................35
   Section 8.3       Repayment to Company........................................................................36
   Section 8.4       Reinstatement...............................................................................36
ARTICLE IX AMENDMENTS............................................................................................36
   Section 9.1       Without Consent of Holders..................................................................36
   Section 9.2       With Consent of Holders.....................................................................37
   Section 9.3       Compliance with Trust Indenture Act.........................................................38
   Section 9.4       Effect of Consents..........................................................................38
   Section 9.5       Notation on or Exchange of Securities.......................................................38
   Section 9.6       Trustee to Sign Amendments, etc.............................................................39
ARTICLE X SUBORDINATION..........................................................................................39
   Section 10.1      Agreement to Subordinate....................................................................39
   Section 10.2      Liquidation; Dissolution; Bankruptcy........................................................39
   Section 10.3      Default of Senior Debt......................................................................40
   Section 10.4      When Distribution Must Be Paid Over.........................................................41
   Section 10.5      Notice by Company...........................................................................42
   Section 10.6      Subrogation.................................................................................42
   Section 10.7      Relative Rights.............................................................................42
   Section 10.8      Subordination May Not Be Impaired by the Company
                     or Holders of Senior Debt...................................................................42
   Section 10.9      Distribution or Notice to Representative....................................................44
   Section 10.10     Rights of Trustee and Paying Agent..........................................................44
   Section 10.11     Authorization to Effect Subordination.......................................................44
   Section 10.12     Article Applicable to Paying Agent..........................................................44
   Section 10.13     Miscellaneous...............................................................................45
ARTICLE XI MISCELLANEOUS.........................................................................................45
   Section 11.1      Trust Indenture Act Controls................................................................45
   Section 11.2      Notices.....................................................................................45
   Section 11.3      Communication by Holders with Other Holders.................................................46
   Section 11.4      Certificate and Opinion as to Conditions Precedent..........................................47

<PAGE>

   Section 11.5      Statements Required in Certificate or Opinion...............................................47
   Section 11.6      Rules by Trustee and Agents.................................................................47
   Section 11.7      Legal Holidays..............................................................................47
   Section 11.8      No Recourse Against Others..................................................................48
   Section 11.9      Duplicate Originals.........................................................................48
   Section 11.10     Governing Law...............................................................................48
   Section 11.11     No Adverse Interpretation of Other Agreements...............................................48
   Section 11.12     Successors..................................................................................48
   Section 11.13     Severability................................................................................48
   Section 11.14     Counterpart Originals.......................................................................48
   Section 11.15     Table of Contents, Headings, etc............................................................48

EXHIBITS:
---------

A - Form of Note

<PAGE>

                                                  CROSS-REFERENCE TABLE
*Trust Indenture Act Section                                                                     Indenture Section
310(a)(1).....................................................................................................7.10
(a)(2)....................................................................................................... 7.10
(a)(3)........................................................................................................N.A.
(a)(4)........................................................................................................N.A.
(a)(5)........................................................................................................N.A.
(b)......................................................................................................7.8; 7.10
(c)...........................................................................................................N.A.
311(a)........................................................................................................7.11
(b)...........................................................................................................7.11
(c)...........................................................................................................N.A.
312(a).........................................................................................................2.5
(b)...........................................................................................................11.3
(c)...........................................................................................................11.3
313(a).........................................................................................................7.6
(b)(1)........................................................................................................N.A.
(b)(2).........................................................................................................7.6
(c)......................................................................................................7.6; 11.2
(d)............................................................................................................7.6
314(a)..............................................................................................4.3; 4.4; 11.2
(b)...........................................................................................................N.A.
(c)(1)........................................................................................................11.4
(c)(2)........................................................................................................11.4
(c)(3)...................................................................................................11.4; 1.1
(d)...........................................................................................................N.A.
(e)...........................................................................................................11.5
(f)...........................................................................................................N.A.
315(a)......................................................................................................7.1(b)
(b)......................................................................................................7.5; 11.2
(c).........................................................................................................7.1(a)
(d).........................................................................................................7.1(c)
(e)...........................................................................................................6.11
316(a)(last sentence)..........................................................................................2.9
(a)(1)(A)......................................................................................................6.5
(a)(1)(B)......................................................................................................6.4
(a)(2)........................................................................................................N.A.
(b)............................................................................................................6.7
(c)...........................................................................................................N.A.
317(a)(1)......................................................................................................6.8
(a)(2).........................................................................................................6.9
(b)............................................................................................................2.4
318(a)........................................................................................................11.1

N.A. means not applicable
* This Cross Reference Table is not part of the Indenture

</TABLE>

<PAGE>

         THIS INDENTURE is hereby entered into as of May ___, 2005, by and
between Consumer Portfolio Services, Inc., a California corporation (the
"COMPANY"), as obligor, and Wells Fargo Bank, National Association, a national
banking association, as trustee (the "TRUSTEE").

         The Company and the Trustee agree as follows for the benefit of each
other and for the equal and ratable benefit of the Holders of the renewable,
unsecured, subordinated debt securities of the Company issued pursuant to the
Company's registration statement on Form S-2, declared effective by the
Securities and Exchange Commission on or about May 12, 2005 (the "REGISTRATION
STATEMENT"):

                                   ARTICLE I
                   DEFINITIONS AND INCORPORATION BY REFERENCE

SECTION 1.1 DEFINITIONS.

         "ACCOUNT" means the record of beneficial ownership of a Security
maintained by the Registrar.

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

         "AGENT" means any Registrar, Paying Agent or co-registrar of the
Securities or any Person appointed and retained by the Company to perform
certain of the duties or obligations, or exercise certain of the rights and
discretions, of the Company hereunder, on behalf of the Company pursuant to
Section 2.15 hereof.

         "BOARD OF DIRECTORS" means the Board of Directors of the Company or any
authorized committee of the Board of Directors.

         "BUSINESS DAY" means any day other than a Legal Holiday.

         "COMPANY" means Consumer Portfolio Services, Inc., a California
corporation, unless and until replaced by a successor in accordance with Article
V hereof and thereafter means such successor.

         "CORPORATE TRUST OFFICE" means the office of the Trustee at which the
corporate trust business of the Trustee shall, at any particular time, be
principally administered, which office is, at the date as of which this
Indenture is originally dated, located at Sixth Street and Marquette Avenue, MAC
N9303-120, Minneapolis, Minnesota, 55479, Attention: Consumer Portfolio
Services, Inc. Administrator.

<PAGE>

         "DEFAULT" means any event that is or with the passage of time or the
giving of notice or both would be an Event of Default.

         "EXCHANGE ACT" means the Securities Exchange Act of 1934, as amended.

         "FISCAL YEAR" means a year ending December 31.

         "GAAP" means, as of any date, generally accepted accounting principles
set forth in the opinions and pronouncements of the Accounting Principles Board
of the American Institute of Certified Public Accountants and statements and
pronouncements of the Financial Accounting Standards Board or in such other
statements by such other entity as approved by a significant segment of the
accounting profession, which are in effect from time to time.

         "GUARANTEE" means a guarantee (other than by endorsement of negotiable
instruments for collection in the ordinary course of business), direct or
indirect, in any manner (including, without limitation, letters of credit and
reimbursement agreements in respect thereof), of all or any part of any
Indebtedness.

         "HOLDER" means a Person in whose name a Security is registered.

         "INDEBTEDNESS" means, with respect to any Person and without
duplication, any indebtedness of such Person, whether or not contingent, in
respect of borrowed money or evidenced by bonds, notes, debentures or similar
instruments or letters of credit (or reimbursement agreements in respect
thereof) or representing the balance deferred and unpaid of the purchase price
of any property (including capital lease obligations) or the expenditure for any
services or representing any hedging obligations, including without limitation,
any such balance that constitutes an accrued expense or an account or trade
payable, if and to the extent any of the foregoing indebtedness (other than
letters of credit and hedging obligations) would appear as a liability upon a
balance sheet of such Person prepared in accordance with GAAP, and also
includes, to the extent not otherwise included, (a) the Guarantee of items that
would be included within this definition, and (b) liability for items that would
arise by operation of a Person's status as a general partner of a partnership.

         "INDENTURE" means this Indenture as amended or supplemented from time
to time.

         "INTEREST ACCRUAL PERIOD" means, as to each Security, the period from
the later of the Issue Date of such Security or the last Payment Date upon which
an interest payment was made until and including the day before the following
Payment Date during which interest accrues on each Security with respect to any
Payment Date.

         "ISSUE DATE" means, with respect to any Security, the date on which
such Security is deemed registered on the books and records of the Registrar,
which shall be (i) the date the Company accepts funds for the purchase of the
Security if such funds are received prior to 12:01 p.m. (Central Time) on a
Business Day, or if such funds are not so received, on the next Business Day, or
(ii) the date that the Security is renewed as of the Maturity Date pursuant to
Section 2.1(e).

INDENTURE - Page 2
<PAGE>

         "MATURITY DATE" means, with respect to any Security, the date on which
the principal of such Security becomes due and payable as therein provided.

         "MATURITY RECORD DATE" means, with respect to any Security, as of 11:59
p.m. of the date 15 days prior to the Maturity Date or Redemption Date
applicable to such Security.

         "NOTICE OF MATURITY" means a written notice from the Company to a
Holder (as further described in Section 2.1(d)) that the Holder's Securities
will be maturing on the related Maturity Date occurring within 15 days but not
less than 10 days of the delivery of such notice.

         "OBLIGATIONS" means, with respect to any Indebtedness, any principal,
premium, interest (including Post-Petition Interest), penalties, fees,
indemnifications, reimbursements, damages and other liabilities or amounts of
whatever nature payable under the documentation governing, or with respect to,
any such Indebtedness.

         "OFFICER" means the Chairman of the Board or principal executive
officer of the Company, the President or principal operating officer of the
Company, the Chief Financial Officer or principal financial officer of the
Company, the Treasurer, Controller or principal accounting officer of the
Company, Secretary or any Executive or Senior Vice-President of the Company.

         "OFFICERS' CERTIFICATE" means a certificate signed by two Officers, one
of whom must be the principal executive officer, principal operating officer,
principal financial officer or principal accounting officer of the Company;
provided, however, that if the opinion of an accountant is required pursuant to
TIA ss. 314(c)(3), the certificate must be signed by an Officer who is an
accountant.

         "OPINION OF COUNSEL" means an opinion from legal counsel who is
reasonably acceptable to the Trustee. The counsel may be an employee of or
counsel to the Company or the Trustee.

         "PARI PASSU DEBT" means any Indebtedness of the Company that is payable
on a pari passu basis with the Securities, including without limitation the
Indebtedness evidenced by the Company's Rising Interest Subordinated Redeemable
Securities (RISRS).

         "PAYMENT ACCOUNT" means the bank account designated by the Holder to
receive payments of interest and/or principal due on such Holder's Securities,
as may be amended by the Holder by written notice to the Registrar from time to
time.

         "PAYMENT DATE" means (i) with respect to any Security for which monthly
interest payments are required to be made, the first day of the following
calendar month or such other date as is designated by the Holder pursuant to
subsection 2.1(c), (ii) with respect to any Security for which interest is
required to be made quarterly, semi-annually or annually, the same day of the
month as the quarterly, semi-annual or annual anniversary of the Issue Date of
the Security (except in the case where the Issue Date of a Security is the 29th,
30th or 31st day of the month and there is no like date in the anniversary
month, in which case the Payment Date for such month shall be the first day of
the following month) and (iii) with respect to each Security, the Maturity Date
(or such date following the Maturity Date on which payment is made pursuant to
subsection 2.1(d) hereof), the Repurchase Date or the Redemption Date of the
Security; provided, that if any such day in the preceding clauses (i) through
(iii) is not a Business Day, the Business Day immediately following such day.

INDENTURE - Page 3
<PAGE>

         "PERSON" means any individual, corporation, partnership, limited
liability company, joint venture, association, joint stock company, trust,
unincorporated organization or government or any agency or political subdivision
thereof.

         "POST-PETITION INTEREST" means interest accruing after the commencement
of any bankruptcy or insolvency case or proceeding with respect to the Company
or any receivership, liquidation, reorganization or other similar case or
proceeding in connection therewith, at the rate applicable to the related
Indebtedness, whether or not such interest is an allowable claim in any such
proceeding.

         "PROSPECTUS" means the prospectus included in the Registration
Statement at the time it was declared effective by the SEC, as supplemented by
any prospectus supplement (including interest rate supplements) relating to the
Securities that are filed with the SEC pursuant to Rule 424(b) under the
Securities Act. References herein to the Prospectus shall be deemed to refer to
and include the documents incorporated therein by reference.

         "QUALIFIED SALES AND FINANCING TRANSACTION" means any transaction or
series of transactions (including without limitation the performance and
liquidation or termination of such transactions) that may be entered into,
sponsored or conducted by the Company or any of its Affiliates pursuant to which
the Company or any of its Affiliates may sell, convey, finance, pledge or
otherwise transfer to (a) a Special Purpose Entity (in the case of a transfer by
the Company or any of its Affiliates) or (b) any other Person (in the case of a
transfer by the Company or a Special Purpose Entity), or may grant a security
interest in or pledge, any Receivables, any securities backed by or any
interests in Receivables (whether now existing or arising or acquired in the
future) and any assets related thereto including, without limitation, all
collateral securing such Receivables, all contracts and contract rights and all
guarantees or other obligations in respect of such Receivables, proceeds of such
Receivables and other assets (including contract rights), which are customarily
sold, transferred or pledged as security in connection with asset
securitization, secured financing or other transactions involving Receivables,
including the ability to finance and sell the residual cash flows retained from
all such transactions.

         "RECEIVABLES" means installment sale contracts, loans evidenced by
promissory notes secured by assets, leases, mortgages or other finance
receivables or instruments purchased, originated or owned by the Company or any
of its Affiliates.

         "REDEMPTION NOTICE" means a written notice from the Company to the
Holders (as further described in Section 2.1(f)) stating that the Company is
redeeming all or a specified portion of Securities pursuant to Section 3.1, with
a copy to the Registrar and the Trustee.

         "REDEMPTION PRICE" means, with respect to any Security to be redeemed,
the principal amount of such Security plus the interest accrued but unpaid
during the Interest Accrual Period up to and not including the Redemption Date
for such Security.

INDENTURE - Page 4
<PAGE>

         "REGULAR RECORD DATE" means, with respect to each Payment Date, as of
11:59 p.m. of the date 15 days prior to such Payment Date.

         "REPAYMENT ELECTION" means a written notice from a Holder to the
Company (as further described in Section 2.1(d)) stating that repayment of the
Holder's Securities is required in connection with the maturity of such
Securities.

         "REPURCHASE PRICE" means, with respect to any Security to be
repurchased, the principal amount of such Security plus the interest accrued but
unpaid during the Interest Accrual Period up to and not including the Repurchase
Date for such Security, minus the Repurchase Penalty, if any.

         "REPURCHASE REQUEST" means a written notice from a Holder to the
Company (as further described in Section 2.1(g)) stating that such Holder is
making an irrevocable request for the Company to repurchase such Holder's
Securities pursuant to Section 3.2.

         "RESPONSIBLE OFFICER" when used with respect to the Trustee, means any
officer in its Corporate Trust Office, or any other assistant officer of the
Trustee in its Corporate Trust Office 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.

         "SEC" means the U.S. Securities and Exchange Commission.

         "SECURITIES ACT" means the Securities Act of 1933, as amended.

         "SECURITY" or "SECURITIES" means, the Company's renewable, unsecured,
subordinated notes issued under this Indenture pursuant to the Registration
Statement.

         "SENIOR DEBT" means any Indebtedness other than the Securities and any
Pari Passu Debt (whether outstanding on the date hereof or thereafter created)
incurred by the Company (including its subsidiaries) whether such Indebtedness
is or is not specifically designated by the Company as being "Senior Debt" in
its defining instruments. Without limiting the generality of the foregoing, the
term "Senior Debt" shall include any and all Indebtedness and other liabilities
and Obligations owed from time to time by the Company to Levine Leichtman
Capital Partners II, L.P. (or any of its affiliates).

         "SPECIAL PURPOSE ENTITIES" means Affiliates of the Company formed for
the specific purpose of securitizing auto loan receivables or facilitating the
Company's warehouse, residual and other financing facilities.

         "SUBSCRIPTION AGREEMENT" means a Subscription Agreement entered into by
a Person under which such Person has committed to purchase certain Securities as
identified thereby and which is in substantially the form filed as Exhibit 4.4
to the Registration Statement.

         "SERVICING AGENT" means Sumner Harrington Ltd., a Minnesota
corporation.

INDENTURE - Page 5
<PAGE>

         "TIA" means the Trust Indenture Act of 1939 (15 U.S.C. ss.ss.
77aaa-77bbbb) as in effect on the date on which this Indenture is qualified
under the TIA.

         "TOTAL PERMANENT DISABILITY" means a determination by a physician
approved by the Company that the Holder of a Security who is a natural person,
who was gainfully employed on a full time basis at the Issue Date of such
Security is unable to work on a full time basis during the succeeding
twenty-four months. For purposes of this definition, "working on a full time
basis" shall mean working at least forty hours per week.

         "TRUSTEE" means Wells Fargo Bank, National Association, a national
banking association, until a successor replaces it in accordance with the
applicable provisions of this Indenture and thereafter means the successor
serving hereunder.

         "U.S. GOVERNMENT OBLIGATIONS" means direct obligations of the United
States of America, or any agency or instrumentality thereof for the payment of
which the full faith and credit of the United States of America is pledged.

         "WRITTEN CONFIRMATION" means a written confirmation of the acceptance
of a subscription for, or the transfer or pledge of, a Security or Securities in
the form of a transaction statement executed or issued by the Company or its
duly authorized Agent and delivered to the Holder of such Security or Securities
with a copy to the Registrar and the Trustee, which is in substantially the form
of Exhibit 4.3 to the Registration Statement.

SECTION 1.2 OTHER DEFINITIONS.

         TERM                               DEFINED IN SECTION
         ----                               ------------------

     "Bankruptcy Law"                              6.1

     "Custodian"                                   6.1

     "Event of Default"                            6.1

     "Legal Holiday"                              11.7

     "Paying Agent"                                2.3

     "Payment Blockage Period"                    10.3

     "Payment Notice"                             10.3

     "Redemption Date"                             2.1(f)

     "Registrar"                                   2.3

     "Registration Statement"                  Introduction

     "Repurchase Date"                             3.2(d)

     "Repurchase Penalty"                          3.2(b)

     "Securities Register"                         2.3

INDENTURE - Page 6
<PAGE>

SECTION 1.3 INCORPORATION BY REFERENCE OF TRUST INDENTURE ACT.

(a)      Whenever this Indenture refers to a provision of the TIA, the provision
         is incorporated 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 Securities;

                  "INDENTURE SECURITY HOLDER" means any Holder of the
         Securities;

                  "INDENTURE TO BE QUALIFIED" means this Indenture;

                  "INDENTURE TRUSTEE" or "INSTITUTIONAL TRUSTEE" means the
         Trustee;

                  "OBLIGOR" on the Securities means the Company or any successor
         obligor upon the Securities.

                  (b) All other terms used in this Indenture that are defined by
         the TIA, defined by TIA reference to another statute or defined by a
         SEC rule under the TIA have the meanings so assigned to them.

SECTION 1.4 RULES OF CONSTRUCTION.

         Unless the context otherwise requires: (a) a term has the meaning
assigned to it; (b) an accounting term not otherwise defined has the meaning
assigned to it in accordance with GAAP; (c) references to GAAP, as of any date,
shall mean GAAP in effect in the United States as of such date; (d) "or" is not
exclusive; (e) words in the singular include the plural, and in the plural
include the singular; and (f) provisions apply to successive events and
transactions.

INDENTURE - Page 7
<PAGE>

                                   ARTICLE II

                                 THE SECURITIES

SECTION 2.1 SECURITY TERMS; AMOUNT; ACCOUNTS; INTEREST; MATURITY.

                  (a) UNLIMITED AMOUNT AND FORM OF SECURITY. The outstanding
         aggregate principal amount of Securities to be issued hereunder (absent
         an amendment to the Registration Statement) is limited to $100 million,
         provided, however, that the Company may, without the consent of any
         Holder, increase such aggregate principal amount of Securities which
         may be outstanding at any time. The Securities are unsecured
         obligations of the Company and shall be subordinate in right of payment
         to the Senior Debt of the Company as further described in Article X.
         The Securities are an obligation and liability of the Company, and not
         of any other Person, including, without limitation, any shareholder,
         director, Officer, employee, Affiliate or Agent of the Company. The
         Securities are not certificates of deposit or similar obligations of,
         and are not guaranteed or insured by, any depository institution, the
         Federal Deposit Insurance Corporation, any other governmental or
         private fund, any securities insurer or any other Person.

                  In the event issued in certificated form pursuant to Section
         2.13(b): (i) the Securities, together with the Trustee's certificate of
         authentication, shall be in substantially the form set forth as EXHIBIT
         A to this Indenture, with any appropriate insertions, omissions,
         substitutions and other variations as are required or permitted by this
         Indenture and may have such letters, numbers or other marks of
         identification and such legends or endorsements placed thereon as may
         be required to comply with the rules of any securities exchange or as
         may, consistently herewith, be determined by the officers executing
         such Securities, as evidenced by their execution of the Securities;
         (ii) any portion of the text of any Securities may be set forth on the
         reverse thereof, with an appropriate reference thereto on the face of
         the Securities; and (iii) the Securities may be subject to notations,
         legends or endorsements required by law, stock exchange rule, or
         agreements to which the Company is subject or usage.

                  (b) BOOK-ENTRY; DENOMINATIONS; TERM. Except as provided in
         Section 2.13(b), each Security shall neither be issued as, nor
         evidenced by, a promissory note or certificated security, but rather
         each Security shall be issued in book entry or uncertificated form, in
         which the record of beneficial ownership of each such Security shall be
         established and maintained as Accounts by the Registrar pursuant to
         Section 2.13. In connection with the issuance of each Security in book
         entry form in accordance with Section 2.13, each such Security shall be
         deemed to be represented in an uncertificated form that includes the
         same terms and provisions as those set forth in the form of Security in
         EXHIBIT A to this Indenture, and the related Account for each such
         Security shall be deemed to include these same terms and provisions.

INDENTURE - Page 8
<PAGE>

                  Each Security shall be in such denominations as provided by
         this Indenture and as may be designated from time to time by the
         Company, but in no event in an original denomination less than $1,000.
         Separate purchases may not be cumulated to satisfy the minimum
         denomination requirements. Each Security shall have a term of three or
         six months, or one, two, three, four, five or ten years, as designated
         by the Holder at the time of purchase, subject to the Company's
         acceptance thereof.

                  (c) INTEREST AND INTEREST PAYMENTS. Each Security shall bear
         interest from and commencing on its Issue Date at such rate of interest
         as the Company shall determine from time to time, which rate may vary
         from Holder to Holder depending upon the aggregate principal amount of
         Securities held by such Holder and all immediate family members, as set
         forth in the Prospectus; provided, however, that the interest rate of
         each Security will be fixed for the term of such Security upon
         issuance, subject to change upon the renewal of the Security at
         maturity. Interest on the Securities will compound daily based on a
         calendar year consisting of 365 days and the Holder thereof may elect
         to have interest paid monthly, quarterly, semi-annually, annually, or
         upon maturity, which payments shall be made on the Payment Date, except
         that a Holder who elects monthly payments may select the day of the
         month on which to receive interest payments; provided that no interest
         shall be paid to a Holder until the expiration of the Holder's
         rescission right under Section 2.2(b) and, if the monthly interest
         payment date selected by the Holder is within five Business Days of the
         Issue Date of the Security, the first interest payment will be made in
         the following month and will include all of the interest earned since
         the Issue Date. If the Holder does not elect an interest payment
         option, interest will be paid on the Maturity Date of the Note. A
         Holder may change this election once during the term of the Security,
         subject to the Company's approval, which change shall be effective by
         the first Business Day following the 45th day after receipt of written
         notice from the Holder requesting such change.

                  (d) REPAYMENT ELECTION AT MATURITY. The Company will send each
         Holder of a Security (existing as of the applicable Maturity Record
         Date) a Notice of Maturity approximately 15 but not less than 10 days
         prior to the Maturity Date of the Security held by such Holder
         reminding such Holder of the pending maturity of the Security and
         reminding the Holder that the automatic renewal provision described in
         Section 2.1(e) will take effect, unless (i) the Company states in the
         Notice of Maturity that it will not allow the Holder to renew the
         Security (in which case the Company shall pay the Holder principal and
         accrued interest with regard to the Security on the Maturity Date), or
         (ii) the Holder delivers a Repayment Election to the Company for the
         payment of all principal and interest due on the Security as of the
         Maturity Date so that such Repayment Election is received by the
         Company within 15 days after the Maturity Date. Such Notice of Maturity
         shall also state that payment of principal of a Security shall be made
         upon presentation of a Repayment Election requiring payment of such
         Security and shall specify the place where such Repayment Election may
         be presented. Upon or following the delivery of a Notice of Maturity
         for a Security, the Holder thereof, in their discretion, may deliver to
         the Company a Repayment Election; provided that such Repayment Election
         must be delivered to the Company no later than 15 days after the
         Maturity Date. If a Holder delivers a Repayment Election requiring
         repayment on or prior to the 15th day following the Maturity Date, no
         interest will accrue after the Maturity Date and the Holder will be
         sent payment upon the later of the Maturity Date or five days following
         the date the Company receives such Repayment Election from the Holder;
         provided that if the Company has previously paid interest to the Holder
         for periods after the Maturity Date, such interest shall be deducted
         from such payment.

INDENTURE - Page 9
<PAGE>

                  The Notice of Maturity also shall state that the Holder may,
         and the Holder may, submit a Repayment Election for the repayment of
         the maturing Security and use all or a portion of the proceeds thereof
         to purchase a new Security with a different term. To exercise this
         option, the Holder shall complete a new Subscription Agreement for the
         new Security and send it along with the Holder's Repayment Election to
         the Company. The Issue Date of the new Security shall be the Maturity
         Date of the maturing Security. Any proceeds from the maturing Security
         that are not applied to the purchase of the new Security shall be sent
         to the Holder of such maturing Security.

                  If a Security pays interest only on the Maturity Date, then
         the Notice of Maturity also shall state that the Holder may, and the
         Holder may, submit an "interest-only" Repayment Election in which the
         Holder requires the payment of the accrued interest that such Holder
         has earned on the maturing Security up to the Maturity Date and allows
         the principal amount of such maturing Security to renew in the manner
         provided in subsection (e) below.

                  (e) AUTOMATIC RENEWAL. If a Holder of such Security has not
         delivered a Repayment Election for repayment of the Security on or
         prior to the 15th day following the Maturity Date, and the Company did
         not notify the Holder of its intention to repay the Security in the
         Notice of Maturity, then such maturing Security shall be extended
         automatically for an additional term equal to the original term, and
         shall be deemed to be renewed by the Holder and the Company as of the
         Maturity Date of such maturing Security. A maturing Security will
         continue to renew as described herein absent a Redemption Notice or
         Repurchase Request by the Holder or an indication by the Company that
         it will repay and not allow the Security to be renewed in the Notice of
         Maturity. Interest on the renewed Security shall accrue from the Issue
         Date thereof, which is the first day of such renewed term (i.e., the
         Maturity Date of the maturing Security). Such renewed Security will be
         deemed to have the identical terms and provisions of the maturing
         Security, including provisions relating to payment, except that the
         interest rate payable during the term of the renewed Security shall be
         the interest rate which is being offered by the Company on other
         Securities having the same term and to Persons holding the same
         aggregate principal amount of Securities (including holdings of
         immediate family members, as described in the Prospectus) as of the
         Issue Date of such renewal. If other Securities having the same term
         are not then being issued on the Issue Date of such renewal, the
         interest rate upon renewal will be the rate specified by the Company on
         or before the Maturity Date of such Security, or the then existing rate
         of the Security being renewed if no such rate is specified. If the
         maturing Security pays interest only on the Maturity Date, then, except
         as provided in subsection (d) above, all accrued interest thereon shall
         be added to the principal amount of the renewed Security upon renewal.

INDENTURE - Page 10
<PAGE>

                  Notwithstanding the foregoing or anything in Section 2.1(d) to
         the contrary, if a Repayment Election is given or is due at a time when
         the Company has determined that a post-effective amendment to the
         Registration Statement was required but not yet effective, the Company
         will provide notice to the Holder (including a copy of the
         post-effective amendment to the Prospectus), and the Holder will be
         entitled to rescind his or her Repayment Election, if made, or to make
         a Repayment Election, if not previously made, by delivering a written
         rescission of the earlier Repayment Election, or a Repayment Election,
         as the case may be, to the Company no later than 10 days following the
         postmark date on the Company's notice of such post-effective amendment.

                  (f) REDEMPTION NOTICE FROM COMPANY. Pursuant to Section 3.1,
         each Security shall be redeemable by the Company at any time, without
         penalty, upon the delivery of a Redemption Notice to the Holder of such
         Security. Such Redemption Notice shall set forth a date for the
         redemption of such Security (the "REDEMPTION DATE") that is at least 30
         days after the date that such Redemption Notice has been delivered by
         the Company to the Holder hereunder.

                  (g) REPURCHASE REQUEST BY HOLDER. Pursuant to and subject to
         the limitations set forth in Section 3.2, each Security shall be
         subject to repurchase at the request of the Holder upon the delivery of
         a Repurchase Request to the Company. Subject to the limitations on
         repurchase and the Repurchase Penalties described in Section 3.2, the
         payment of interest and principal due upon the repurchase of a Security
         shall be made to the Holder on a Repurchase Date that is within 10 days
         of the delivery of such Repurchase Request to the Company or, in the
         case of a repurchase of a Security in connection with the death or
         Total Permanent Disability of a Holder, a Repurchase Date that is
         within 10 days after the Company's receipt of satisfactory
         establishment or such Holder's death or Total Permanent Disability.

                  (h) TERMS OF SECURITIES. The terms and provisions contained in
         the Securities shall constitute, and are hereby expressly made, a part
         of this Indenture and to the extent applicable, the Company and the
         Trustee, by their execution and delivery of this Indenture, and the
         Holders by accepting the Securities, expressly agree to such terms and
         provisions and to be bound hereby and thereby. In case of a conflict,
         the provisions of this Indenture shall control.

SECTION 2.2 WRITTEN CONFIRMATION; REJECTION; RESCISSION.

                  (a) Except with respect to an automatically renewed Security
         pursuant to Section 2.1(e), a Security shall not be validly issued to a
         Person until the following have occurred: (i) such Person has remitted
         good and available funds for the full principal amount of such Security
         to the Company or a duly authorized Agent of the Company; (ii) a
         Written Confirmation of the acceptance of the subscription is sent by
         the Company or a duly authorized Agent of the Company to such Person;
         and (iii) an Account is established by the Registrar in the name of
         such Person as the Holder of such Security pursuant to Section 2.13
         hereof. The Company or a duly authorized Agent of the Company, in their
         sole discretion, may reject any subscription from a Person for the
         purchase of Securities, in which event any funds received from such
         Person pursuant to such subscription shall be promptly returned to such
         Person. No interest shall be paid on any funds returned on a rejected
         subscription.

INDENTURE - Page 11
<PAGE>

                  (b) For a period of five Business Days following the mailing
         by the Company of (i) a Written Confirmation that evidences the valid
         issuance of a Security at the time of original purchase (but not upon
         transfer or automatic renewal of a Security), or (ii) notice from the
         Company that a Holder's purchase of a Security occurred at a time when
         a post-effective amendment to the Registration Statement was required
         but not yet effective (which notice shall be accompanied by a copy of
         the post-effective amendment to the Prospectus), such Holder shall have
         the right to rescind the Security and receive repayment of the
         principal by presenting a written request for such rescission to the
         Company. Such written request for rescission (A) if personally
         delivered or delivered via facsimile or electronic transmission, must
         be received by the Company on or prior to the 5th Business Day
         following the mailing of such Written Confirmation or post-effective
         amendment notice by the Company or (B) if mailed must be postmarked on
         or before the 5th Business Day following the mailing by the Company of
         such Written Confirmation or post-effective amendment notice. Repayment
         of the principal shall be made within 10 days of the Company's receipt
         of such request from the Holder. No interest shall be paid on any such
         rescinded Security.

SECTION 2.3 REGISTRAR AND PAYING AGENT.

                  (a) The Company shall maintain (i) an office or agency where
         Securities may be presented for registration of transfer or for
         exchange ("REGISTRAR") and (ii) an office or agency where Securities
         may be presented for payment ("PAYING AGENT"). The Registrar shall keep
         a register of the Securities and of their transfer and exchange, which
         shall include the name, address for notices and Payment Account of the
         Holder and the payment election information, principal amount, term and
         interest rate for each Security (the "SECURITIES REGISTER"). The
         Company may appoint one or more co-registrars and one or more
         additional paying agents. The term "REGISTRAR" includes any
         co-registrar, and the term "PAYING AGENT" includes any additional
         paying agent. The Company may change any Paying Agent or Registrar
         without prior notice to any Holder; provided that the Company shall
         promptly notify the Holders and the Trustee of the name and address of
         any Agent not a party to this Indenture. The Company may act as Paying
         Agent and/or Registrar. In the event the Company uses any Agent other
         than the Company or the Trustee, the Company shall enter into an
         appropriate agency agreement with such Agent, which agreement shall
         incorporate the provisions of the TIA or provide that the duties
         performed thereunder are subject to and governed by the provisions of
         this Indenture. The agreement shall implement or be subject to the
         provisions of this Indenture that relate to such Agent. The Company
         shall notify the Trustee of the name and address of any such Agent. If
         the Company fails to maintain a Registrar or Paying Agent, or fails to
         give the foregoing notice, the Trustee shall act as such, and shall be
         entitled to appropriate compensation in accordance with Section 7.7
         hereof. In no event shall the Trustee be liable for the acts or
         omissions of any predecessor Paying Agent or Registrar.

                  (b) Pursuant to Section 2.15, the Company hereby appoints the
         Servicing Agent as the initial Registrar and as agent for service of
         notices and demands in connection with the Securities. The Servicing
         Agent shall act as Registrar and agent for service of notices and
         demands in connection with the Securities until such time as the
         Company gives the Trustee written notice to the contrary. Also pursuant
         to Section 2.15, the Company hereby appoints Wells Fargo Bank, National
         Association as the initial Paying Agent.

INDENTURE - Page 12
<PAGE>

SECTION 2.4 PAYING AGENT TO HOLD MONEY IN TRUST.

         Prior to each Payment Date, the Company shall deposit with the Paying
Agent sufficient funds to pay principal and interest then so becoming due and
payable in cash. The Company shall require each Paying Agent other than the
Trustee to agree in writing that the Paying Agent will hold in trust for the
benefit of Holders or the Trustee all money held by the Paying Agent for the
payment of principal or interest on the Securities, and will notify the Trustee
promptly in writing of any default by the Company in making any such payment.
While any such default continues, the Trustee shall require a Paying Agent (if
other than the Company) to pay all money held by it to the Trustee. The Company
at any time may require a Paying Agent to pay all money held by it to the
Trustee. Upon payment over to the Trustee, the Paying Agent (if other than the
Company) shall have no further liability for the money delivered to the Trustee.
If the Company acts as Paying Agent, then the Company shall segregate and hold
in a separate trust fund for the benefit of the Holders all money held by it as
Paying Agent. The Company shall notify the Trustee in writing at least five days
before the Payment Date of the name and address of the Paying Agent if a person
other than the Trustee is named Paying Agent at any time or from time to time.

SECTION 2.5 LIST OF HOLDERS.

         The Trustee shall preserve in as current a form as is reasonably
practicable the most recent list available to it of the names and addresses of
Holders and shall otherwise comply with TIA ss. 312(a). If the Trustee is not
the Registrar, the Registrar shall furnish to the Trustee within 10 days after
the end of each fiscal quarter during the term of this Indenture and at such
other times as the Trustee may request in writing, a copy of the current
Securities Register as of such date as the Trustee may reasonably require and
the Company shall otherwise comply with TIA ss. 312(a).

SECTION 2.6 TRANSFER AND EXCHANGE.

                  (a) The Securities are not negotiable instruments and cannot
         be transferred without the prior written consent of the Company (which
         consent shall not be unreasonably withheld). Requests to the Registrar
         for the transfer of any Security shall be:

                           (i) made to the Registrar in writing on a form
                  supplied by the Registrar;

                           (ii) duly executed by the Holder of the Security, as
                  reflected on the Registrar's records as of the date of receipt
                  of such transfer request, or such Holder's attorney duly
                  authorized in writing;

                           (iii) accompanied by the written consent of the
                  Company to the transfer (which consent may not be unreasonably
                  withheld); and

INDENTURE - Page 13
<PAGE>

                           (iv) if requested by the Company or the Registrar, an
                  opinion of Holder's counsel (which counsel shall be reasonably
                  acceptable to the requesting party) that the transfer does not
                  violate any applicable securities laws and/or a signature
                  guarantee.

                  (b) Upon transfer of a Security, the Company, or the Registrar
         on behalf of the Company, will provide the new registered owner of the
         Security with a Written Confirmation that will evidence the transfer of
         the Security in the Securities Register and will establish a
         corresponding Account.

                  (c) The Company or the Registrar may assess reasonable service
         charges to a Holder for any registration or transfer or exchange, and
         the Company may require payment of a sum sufficient to cover any
         transfer tax or similar governmental charge payable in connection
         therewith (other than any such transfer taxes or similar governmental
         charge payable upon exchange pursuant to Section 9.5 hereof).

                  (d) With respect to the relevant Regular Record Date, the
         Company shall treat the individual or entity listed on each Account
         maintained by the Registrar as the absolute owner of the Security
         represented thereby for purposes of receiving payments thereon and for
         all other purposes whatsoever.

SECTION 2.7 PAYMENT OF PRINCIPAL AND INTEREST; PRINCIPAL AND INTEREST RIGHTS
PRESERVED.

                  (a) Each Security shall accrue interest at the rate specified
         for such Security in the Securities Register and such interest shall be
         payable on each Payment Date following the Issue Date for such
         Security, until the principal thereof becomes due and payable. Any
         installment of interest payable on a Security that is caused to be
         punctually paid or duly provided for by the Company on the applicable
         Payment Date shall be paid to the Holder in whose name such Security is
         registered in the Securities Register on the applicable Regular Record
         Date with respect to the Securities outstanding, by electronic deposit
         to such Holder's Payment Account as it appears in the Securities
         Register on such Regular Record Date. The payment of any interest
         payable in connection with the payment of any principal payable with
         respect to such Security on a Maturity Date shall be payable as
         provided below. In the event any payments made by electronic deposit
         are not accepted into the Holder's Payment Account for any reason, such
         funds shall be held in accordance with Sections 2.4 and 8.3 hereof. Any
         installment of interest not punctually paid or duly provided for shall
         be payable in the manner and to the Holders as specified in Section
         2.10 hereof.

                  (b) Each of the Securities shall have stated maturities of
         principal as shall be indicated on such Securities or in the Written
         Confirmation and as set forth in the Securities Register. The principal
         of each Security shall be paid in full as of the Maturity Date thereof
         pursuant to Section 2.1(d), unless the term of such Security is renewed
         pursuant to Section 2.1(e) hereof or such Security becomes due and
         payable at an earlier date by acceleration, redemption, repurchase or
         otherwise. Interest on each Security shall be due and payable on each

INDENTURE - Page 14
<PAGE>

         Payment Date at the interest rate applicable to such Security for the
         Interest Accrual Period related to such Security and such Payment Date.
         Notwithstanding any of the foregoing provisions with respect to
         payments of principal of and interest on the Securities, if the
         Securities have become or been declared due and payable following an
         Event of Default, then payments of principal of and interest on the
         Securities shall be made in accordance with Article VI hereof. If
         definitive, certificated securities are issued, then the principal
         payment made on any Security on any Maturity Date (or the Redemption
         Price or the Repurchase Price of any Security required to be redeemed
         or repurchased, respectively), and any accrued interest thereon, shall
         be payable on or after the Maturity Date, Redemption Date or the
         Repurchase Date therefore at the office or agency of the Company
         maintained by it for such purpose pursuant to Section 2.3 hereof or at
         the office of any Paying Agent for such Security.

                  (c) All computations of interest due with respect to any
         Security shall be made, unless otherwise specified in the Security,
         based upon a 365-day year.

SECTION 2.8 OUTSTANDING SECURITIES.

                  (a) The Securities outstanding at any time are the outstanding
         principal balances of all Accounts representing the Securities
         maintained by the Company or such other entity as the Company
         designated as Registrar.

                  (b) If the principal amount of any Security is considered paid
         under Section 4.1 hereof, it ceases to be outstanding and interest on
         it ceases to accrue.

                  (c) Subject to Section 2.9 hereof, a Security does not cease
         to be outstanding because the Company or an Affiliate of the Company
         holds the Security.

SECTION 2.9 TREASURY SECURITIES.

         In determining whether the Holders of the required principal amount of
Securities have concurred in any direction, waiver or consent, Securities owned
by the Company or any Affiliate of the Company shall be considered as though not
outstanding, except that for purposes of determining whether the Trustee shall
be protected in relying on any such direction, waiver or consent, only
Securities that a Responsible Officer of the Trustee actually knows to be so
owned shall be so disregarded.

SECTION 2.10 DEFAULTED INTEREST.

         If the Company defaults in a payment of interest on any Security, it
shall pay the defaulted interest plus, to the extent lawful, any interest
payable on the defaulted interest, to the Holder of such Security on a
subsequent special Payment Date, which date shall be at the earliest practicable
date, but in all events within 15 days following the scheduled Payment Date of
the defaulted interest, in each case at the rate provided in the Security. The
Regular Record Date for the scheduled Payment Date shall be the record date for
the special Payment Date. Prior to any such special Payment Date, the Company
(or the Trustee, in the name of and at the expense of the Company) shall mail to
Holder(s) a notice that states the special Payment Date and the amount of such
interest to be paid.

INDENTURE - Page 15
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SECTION 2.11 TEMPORARY NOTES.

         If Securities are issued in certificated form in the limited
circumstances contemplated under Section 2.13(b), pending the preparation of
definitive Securities, the Company may execute, and direct that the Trustee
authenticate and deliver, temporary Securities which are printed, lithographed,
typewritten, mimeographed or otherwise produced, in any authorized denomination,
substantially of the tenor of the definitive Securities, in lieu of which they
are issued and with such appropriate insertions, omissions, substitutions and
other variations as the officers executing such Securities may determine, as
evidenced by their execution of such Securities.

         If temporary Securities are issued, the Company will cause definitive
Securities to be prepared without unreasonable delay. After the preparation of
definitive Securities, the temporary Securities shall be exchangeable for
definitive Securities upon surrender of the temporary Securities at any office
or agency of the Registrar without charge to the Holder.

         Upon surrender for cancellation of any one or more temporary
Securities, the Company shall execute and the Trustee shall authenticate and
deliver in exchange therefor a like principal amount of definitive Securities of
authorized denominations. Until so exchanged the temporary Securities shall in
all respects be entitled to the same benefits under this Indenture as definitive
Securities.

SECTION 2.12 EXECUTION, AUTHENTICATION AND DELIVERY.

                  (a) Subject to subsection (b) below, the Securities shall be
         executed on behalf of the Company by an Officer and attested by its
         Secretary or Assistant Secretary. The signature of any of these
         officers on the Securities may be manual or facsimile. Securities
         bearing the manual or facsimile signatures of individuals who were at
         any time the proper Officers of the Company shall bind the Company,
         notwithstanding that such individuals or any of them have ceased to
         hold such offices prior to the authentication and delivery of such
         Securities or did not hold such offices at the date of such Securities.

                  At the time of and from time to time after the execution and
         delivery of this Indenture, the Company will deliver definitive or
         certificated forms of Securities, if any, executed by the Company to
         the Trustee for authentication, together with a direction from the
         Company for the authentication and delivery of such Securities. The
         Trustee in accordance with such direction from the Company shall
         authenticate and deliver such Securities as in this Indenture provided
         and not otherwise. Securities issued hereunder shall be dated as of
         their Issue Date.

                  No Security shall be entitled to any benefit under this
         Indenture or be valid or obligatory for any purpose unless there
         appears on such Security an authentication executed by or on behalf of
         the Trustee by manual signature, and such authentication upon any
         Security shall be conclusive evidence, and the only evidence, that such
         Security has been duly authenticated and delivered hereunder and is
         entitled to the benefits of the Indenture.

INDENTURE - Page 16
<PAGE>

(b)      Notwithstanding the preceding subsection (a) of this Section, in
         connection with the issuance of each Security in book-entry form
         pursuant to Section 2.13, each Security shall be deemed to be executed
         and attested to by the Company and authenticated and delivered by the
         Trustee, in the same manner as provided in the preceding subsection
         (a), upon the delivery by the Company (or the Company's duly authorized
         Agent) to the Holder of such Security of a Written Confirmation, with a
         copy of such Written Confirmation delivered to the Trustee, and the
         establishment by the Registrar of an Account for such Security in the
         name of the Holder pursuant to Section 2.13 hereof.

SECTION 2.13 BOOK-ENTRY REGISTRATION.

                  (a) The Registrar shall maintain a book-entry registration and
         transfer system through the establishment and maintenance of Accounts
         for the benefit of Holders of Securities as the sole method of
         recording the ownership and transfer of ownership interests in such
         Securities. The registered owners of the Accounts established by the
         Registrar in connection with the purchase or transfer of the Securities
         shall be deemed to be the Holders of the Securities outstanding for all
         purposes under this Indenture. The Company (or its duly authorized
         Agent) shall promptly notify the Registrar of the acceptance of a
         subscriber's order to purchase a Security by providing a copy of the
         accepted Subscription Agreement and the related Written Confirmation,
         and upon receipt of such notices, the Registrar shall establish an
         Account for such Security by recording a credit to its book-entry
         registration and transfer system to the Account of the related Holder
         of such Security for the principal amount of such Security owned by
         such Holder and issue a Written Confirmation to the Holder, with a copy
         being delivered to the Trustee, on behalf of the Company. The Registrar
         shall make appropriate credit and debit entries within each Account to
         record all of the applicable actions under this Indenture that relate
         to the ownership of the related Security and issue Written
         Confirmations to the related Holders as set forth herein, with copies
         being delivered to the Trustee, on behalf of the Company. For example,
         the total amount of any principal and/or interest due and payable to
         the Holders of the Accounts maintained by the Registrar as provided in
         this Indenture shall be credited to such Accounts by the Registrar
         within the time frames provided in this Indenture, and the amount of
         any payments of principal and/or interest distributed to the Holders of
         the Accounts as provided in this Indenture shall be debited to such
         Accounts by the Registrar. The Trustee may review the book-entry
         registration and transfer system as it deems necessary to ensure the
         Registrar's compliance with the terms of the Indenture.

                  (b) Book-entry Accounts evidencing ownership of the Securities
         shall be exchangeable for definitive or certificated forms of
         Securities in denominations of $1,000 and any amount in excess thereof
         and fully registered in the names as each Holder directs only if (i)
         the Company at its option advises the Trustee and the Registrar in
         writing of its election to terminate the book-entry system, or (ii)
         after the occurrence of any Event of Default, Holders of a majority of
         the aggregate outstanding principal amount of the Securities (as
         determined based upon the latest quarterly statement provided to the
         Trustee pursuant to Section 2.5 hereof) advise the Trustee in writing
         that the continuation of the book-entry system is no longer in the best
         interests of such Holders and the Trustee notifies all Holders of the
         Securities, of such event and the availability of certificated forms of
         securities to the Holders of Securities.

INDENTURE - Page 18
<PAGE>

SECTION 2.14 INITIAL AND PERIODIC STATEMENTS.

                  (a) Subject to the rejection of a Subscription Agreement
         pursuant to Section 2.2(a), the Registrar shall send Written
         Confirmations to initial purchasers, registered owners, registered
         pledgees, former registered owners and former pledgees, within two
         Business Days of its receipt of proper notice regarding the purchase,
         transfer or pledge of a Security, with copies of such Written
         Confirmations being delivered to the Trustee, on behalf of the Company.

                  (b) The Registrar shall send each Holder of a Security (and
         each registered pledgee) via U.S. mail not later than 10 Business Days
         after each quarter end in which such Holder had an outstanding balance
         in such Holder's Account, a statement which indicates as of the quarter
         end preceding the mailing: (i) the balance of such Account; (ii)
         interest credited for the period; (iii) repayments, redemptions or
         repurchases, if any, during the period; and (iv) the interest rates
         paid on the Securities in such Account during the period. The Registrar
         shall provide additional statements as the Holders or registered
         pledgees of the Securities may reasonably request from time to time.
         The Registrar may charge such Holders or pledgees requesting such
         statements a fee to cover the charges incurred by the Registrar in
         providing such additional statements.

SECTION 2.15 APPOINTMENT OF AGENTS.

         The Company may from time to time engage Agents to perform its
obligations and exercise its rights and discretion under the terms of this
Indenture. In each such case, the Company will provide the Trustee with a copy
of each agreement under which any such Agent is engaged and the name, address,
telephone number and capacity of the Agent appointed. If any such Agent shall
resign, or such Agent's engagement is terminated by the Company, subsequent to
the Agent's appointment by the Company under this Section 2.15, the Company
shall promptly notify the Trustee of such resignation or termination, along with
the name, address, telephone number and capacity of any successor Agent.
Notwithstanding any engagement of an Agent hereunder, the Company shall remain
obligated to fulfill each of its obligations under this Indenture.

                                  ARTICLE III

                            REDEMPTION AND REPURCHASE

SECTION 3.1 REDEMPTION OF SECURITIES AT THE COMPANY'S ELECTION.

                  (a) The Company may redeem, in whole or in part, any Security
         prior to the scheduled Maturity Date of the Security by providing
         pursuant to Section 2.1(f) a Redemption Notice to the Holder thereof
         listed on the records maintained by the Registrar, which notice shall
         include the Redemption Date and the Redemption Price to be paid to the
         Holder on the Redemption Date. No interest shall accrue on a Security
         to be redeemed under this Section 3.1 for any period of time after the
         Redemption Date for such Security, provided that the Company or the
         Paying Agent has timely tendered the Redemption Price to the Holder.

INDENTURE - Page 18
<PAGE>

                  (b) The Company shall have no mandatory redemption or sinking
         fund obligations with respect to any of the Securities.

                  (c) In its sole discretion, the Company may offer certain
         Holders the ability to extend the maturity of an existing Security
         through the redemption of such Security and the issuance of a new
         Security. This redemption option shall not be subject to the 30 day
         notice of redemption described in Section 2.1(f).

SECTION 3.2 REPURCHASE OF SECURITIES AT THE HOLDER'S REQUEST.

                  (a) REPURCHASE UPON DEATH OR DISABILITY. Subject to subsection
         (c) below, within 45 days of the death or Total Permanent Disability of
         a Holder who is a natural person (including Securities held in an
         individual retirement account), the estate of such Holder (in the event
         of death) or such Holder (in the event of Total Permanent Disability)
         may request that the Company repurchase, in whole and not in part,
         without penalty, the Security held by such Holder, by delivering to the
         Company a Repurchase Request. If a Security is held jointly by natural
         persons who are legally married, then a Repurchase Request may be made
         when either registered Holder of such Security dies or becomes subject
         to a Total Permanent Disability, the surviving Holder or the disabled
         Holder may request that the Company repurchase in whole and not in
         part, without penalty, such Security as jointly held by the Holders by
         delivering to the Company a Repurchase Request. In the event a Security
         is held jointly by two or more natural persons that are not legally
         married, neither of these persons shall have the right to request that
         the Company repurchase such Security unless all joint holders of such
         Security have either died or suffered a Total Permanent Disability. If
         the Security is held by a Holder who is not a natural person, such as a
         trust, partnership, corporation or other similar entity, the right to
         request repurchase upon death or disability does not apply.

                  (b) REPURCHASE UPON HOLDER'S ELECTION. Subject to subsection
         (c) below, a Holder may request the Company to repurchase, in whole and
         not in part, the Security held by such Holder by delivering a
         Repurchase Request to the Company. Any such requested repurchase shall
         be made only at the Company's discretion and, if made, will be subject
         to an early Repurchase Penalty to be deducted from the payment of such
         Holder's Repurchase Price on the Repurchase Date. The early repurchase
         penalty (the "REPURCHASE Penalty") shall equal the following: (i) with
         respect to a Security with a three month maturity, the interest accrued
         on a simple interest basis on such Security from the Issue Date to the
         Repurchase Date at the existing interest rate thereof, but not to
         exceed three months of simple interest on such Security, or (ii) with
         respect to a Security with a maturity of six months or longer, the
         interest accrued on a simple interest basis on such Security from the
         Issue Date to the Repurchase Date at the existing interest rate
         thereof, but not to exceed six months of simple interest on such
         Security.

INDENTURE - Page 19
<PAGE>

                  (c) LIMITATION ON REPURCHASES. The Company will only be
         required to repurchase Securities for which Repurchase Requests have
         been received pursuant to paragraph (a) above, and, if accepted by the
         Company, paragraph (b) above, to the extent that the aggregate
         Repurchase Price for all Securities for which Repurchase Requests are
         then outstanding in any calendar quarter would not exceed the greater
         of (i) two percent of the aggregate outstanding principal balance of
         all Securities as of the last day of the previous calendar quarter or
         (ii) $1 million. For the purposes of applying such limits on the
         aggregate Repurchase Price for outstanding Repurchase Requests, such
         outstanding Repurchase Requests will be honored in the order of the
         date received or, in the case of Repurchase Requests made in connection
         with a Holder's death or Total Permanent Disability, the later of the
         date received or the date such death or Total Permanent Disability is
         established to the reasonable satisfaction of the Company, and to the
         extent any Repurchase Request is not paid in the quarter received or so
         established due to such limitations, it will be honored in the
         subsequent quarter, to the extent possible, subject to the
         applicability of such limits on aggregate Repurchase Requests in each
         subsequent quarter. For the avoidance of doubt, in the event that the
         Company would otherwise be required to repurchase a Security hereunder
         in a given quarter by reason of the priority of the Repurchase Request
         (as established in this Section) but for the fact that the Repurchase
         Price exceeds the amount remaining under the forgoing limitations
         (after giving effect to all other Repurchase Requests having priority
         during such quarter), the Company may, at its option, effect a partial
         repurchase of such Security, up to the portion of the Repurchase Price
         covered by the amount remaining, and carry the Repurchase Request for
         the balance of such Security forward as provided above.

                  (d) REPURCHASE DATE. To the extent a Security for which a
         Repurchase Request has been received during the then current calendar
         quarter is determined not to be subject to the limitation in subsection
         (c) above and thus, will be repurchased during the current quarter,
         then the Company shall designate a date for the repurchase of such
         Security (the "REPURCHASE DATE"), which date shall not be more than 10
         days after the Company's receipt of the Repurchase Request or, in the
         case of a Repurchase Request following the death or Total Permanent
         Disability of the Holder, 10 days after the Company's receipt of
         satisfactory establishment of such Holder's death or Total Permanent
         Disability. On the Repurchase Date, the Company shall pay the
         Repurchase Price to the Holder (or the estate of the Holder, in the
         case of a request following death) in accordance with Section 2.7. With
         respect to a Security for which a Repurchase Request has been received
         during a prior calendar quarter and for which the Repurchase Price was
         not paid during such prior calendar quarter, but rather the Repurchase
         Request has been carried over to and is still outstanding in the
         current calendar quarter (because of the limitation in subsection (c)
         above), the Company shall designate a Repurchase Date not later than
         the tenth (10th) day after the start of such calendar quarter, unless
         subsection (c) is again applicable, in which case such obligation shall
         be met not later than the tenth (10th) day after the start of the next
         calendar quarter during which such limitation is no longer applicable.
         No interest shall accrue on a Security to be repurchased under this
         Section 3.2 for any period of time on or after the Repurchase Date for
         such Security, provided that the Company or the Paying Agent has timely
         tendered the Repurchase Price to the Holder or the estate of the
         Holder, as the case may be.

INDENTURE - Page 20
<PAGE>

                  (e) WAIVER AND MODIFICATION OF REPURCHASE POLICIES. The
         Company may waive or reduce any early Repurchase Penalty in its sole
         discretion and may modify at any time its policy on the repurchase of
         Securities at the request of Holders; provided that no such
         modification shall adversely affect the rights of Holders to the
         repurchase of Securities for which Repurchase Requests are then
         outstanding.

                                   ARTICLE IV

                                    COVENANTS

SECTION 4.1 PAYMENT OF SECURITIES.

                  (a) Subject to Article X, the Company shall duly pay the
         principal of and interest on each Security on the dates and in the
         manner provided under this Indenture. Principal and interest (to the
         extent such interest is paid in cash) shall be considered paid on the
         date due if the Paying Agent, if other than the Company, holds, at
         least one Business Day before that date, money deposited by the Company
         in immediately available funds and designated for and sufficient to pay
         all principal and interest then due; provided, however, that principal
         and interest shall not be considered paid within the meaning of this
         Section 4.1 if money is held by the Paying Agent for the benefit of
         holders of Senior Debt pursuant to the provisions of Article X hereof.
         Such Paying Agent shall return to the Company, no later than five days
         following the date of payment, any money (including accrued interest,
         if any) that exceeds such amount of principal and interest paid on the
         Securities in accordance with this Section 4.1.

                  (b) Subject to Article X, to the extent lawful, the Company
         shall pay interest (including Post-Petition Interest in any proceeding
         under any Bankruptcy Law) on overdue principal at the rate borne by the
         Securities, compounded semi-annually; it shall pay interest (including
         Post-Petition Interest in any proceeding under any Bankruptcy Law) on
         overdue installments of interest (without regard to any applicable
         grace period) at the same rate, compounded semi-annually.

SECTION 4.2 MAINTENANCE OF OFFICE OR AGENCY.

                  (a) The Company will maintain an office or agency (which may
         be an office of the Trustee, Registrar or co-registrar) where
         Securities may be surrendered for registration of transfer or exchange
         and where notices and demands to or upon the Company in respect of the
         Securities and this Indenture may be served. The Company will give
         prompt written notice to the Trustee of the location, and any change in
         the location, of such office or agency. If at any time the Company
         shall fail to maintain any such required office or agency or shall fail
         to furnish the Trustee with the address thereof, such presentations,
         surrenders, notices and demands may be made or served at the Corporate
         Trust Office of the Trustee.

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

INDENTURE - Page 21
<PAGE>

                  (c) The Company hereby designates its office at 16355 Laguna
         Canyon Road, Irvine, California 92618, as one such office or agency of
         the Company in accordance with Section 2.3.

SECTION 4.3 SEC REPORTS AND OTHER REPORTS.

                  (a) The Company shall provide to the Trustee, within 45 days
         after filing with the SEC, paper copies or, if such documents are
         readily available on the SEC's website, notification of the
         availability of, the annual reports and of the information, documents,
         and other reports (or copies of such portions of any of the foregoing
         as the SEC may by rules and regulations prescribe) that the Company is
         required to file with the SEC pursuant to Section 13 or 15(d) of the
         Exchange Act. The Company shall otherwise comply with the periodic
         reporting requirements as set forth in TIA ss. 314(a), and the Company
         shall file with the Trustee and the SEC, in accordance with the rules
         and regulations prescribed by the SEC, such additional information,
         documents and reports with respect to compliance by the Company with
         the conditions and covenants of this Indenture as may be required from
         time to time by such rules and regulations. Notwithstanding anything to
         the contrary herein, the Trustee shall have no duty to review such
         documents for purposes of determining compliance with any provisions of
         the Indenture.

                  (b) The Company, or such other entity as the Company shall
         designate as Registrar, shall provide the Trustee at intervals of not
         more than six months with management reports which provide the Trustee
         with such information regarding the Accounts maintained by the Company
         for the benefit of the Holders of the Securities as the Trustee may
         reasonably request which information shall include at least the
         following for the relevant time interval from the date of the
         immediately preceding report: (i) the outstanding balance of each
         Account at the end of the period; (ii) interest credited for the
         period; (iii) repayments, repurchases and redemptions, if any, made
         during the period; and (iv) the interest rate paid on each Security in
         such Account maintained by the Registrar during the period.

                  (c) Notwithstanding any provision of this Indenture to the
         contrary, the Company shall not have any obligation to maintain any of
         its securities (other than the Securities hereunder), including without
         limitation its common stock, as securities registered under the
         Exchange Act or the Securities Act, as amended, or as securities listed
         and publicly traded on any national securities exchange.

SECTION 4.4 COMPLIANCE CERTIFICATE.

                  (a) The Company shall deliver to the Trustee, within 120 days
         after the end of each Fiscal Year, beginning in 2006, an Officers'
         Certificate stating that a review of the activities of the Company
         during the preceding fiscal year has been made under the supervision of
         the signing Officers with a view to determining whether the Company has
         kept, observed, performed and fulfilled its obligations under this

INDENTURE - Page 22
<PAGE>

         Indenture, and further stating, as to each such Officer signing such
         certificate, that to the best of their knowledge the Company has kept,
         observed, performed and fulfilled each and every covenant contained in
         this Indenture and is not in default in the performance or observance
         of any of the terms, provisions and conditions hereof (or, if a Default
         or Event of Default shall have occurred, describing all such Defaults
         or Events of Default of which he or she may have knowledge and what
         action the Company is taking or proposes to take with respect thereto)
         and that to the best of their knowledge no event has occurred and
         remains in existence by reason of which payments on account of the
         principal of or interest, if any, on the Securities are prohibited or
         if such event has occurred, a description of the event and what action
         the Company is taking or proposes to take with respect thereto.

                  (b) So long as not contrary to the then current
         recommendations of the American Institute of Certified Public
         Accountants, the annual financial statements delivered pursuant to
         Section 4.3 above shall be accompanied by a written statement of the
         Company's independent public accountants that in making the examination
         necessary for certification of such financial statements nothing has
         come to their attention which would lead them to believe that the
         Company has violated the provisions of Section 4.1 of this Indenture
         or, if any such violation has occurred, specifying the nature and
         period of existence thereof, it being understood that such accountants
         shall not be liable directly or indirectly to any Person for any
         failure to obtain knowledge of any such violation.

                  (c) The Company will, so long as any of the Securities are
         outstanding, deliver to the Trustee, forthwith upon any Officer
         becoming aware of any Default or Event of Default, an Officers'
         Certificate specifying such Default or Event of Default and what action
         the Company is taking or proposes to take with respect thereto.

SECTION 4.5 STAY, EXTENSION AND USURY LAWS.

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

SECTION 4.6 LIQUIDATION.

         The Board of Directors or the stockholders of the Company shall not
adopt a plan of liquidation that provides for, contemplates or the effectuation
of which is preceded by (a) the sale, lease, conveyance or other disposition of
all or substantially all of the assets of the Company, otherwise than (i)
substantially as an entirety (Section 5.1 of this Indenture being the Section
hereof which governs any such sale, lease, conveyance or other disposition
substantially as an entirety), or (ii) and Qualified Sales and Financing
Transaction, and (b) the distribution of all or substantially all of the
proceeds of such sale, lease, conveyance or other disposition and of the
remaining assets of the Company to the holders of capital stock of the Company,
unless the Company, prior to making any liquidating distribution pursuant to
such plan, makes provision for the satisfaction of the Company's Obligations
hereunder and under the Securities as to the payment of principal and interest.

INDENTURE - Page 23
<PAGE>

SECTION 4.7 FINANCIAL COVENANTS.

         The Company covenants that, so long as any of the Securities are
outstanding, the Company will maintain a positive net worth, which includes all
equity held by the Company's common and preferred stockholders and any
subordinated debt of the Company that is subordinate to these Securities.

SECTION 4.8 RESTRICTIONS ON DIVIDENDS.

         The Company covenants that, so long as any of the Securities are
outstanding, it shall not declare or pay any dividends or other payments of cash
or other property solely on account of its capital stock to its common or
preferred stockholders (other than any dividend payable in shares of or rights
to acquire shares of the Company's capital stock on a pro rata basis to all
stockholders), unless no Default or Event of Default specified under Section
6.1(a) or (b) then exists or would exist immediately following the declaration
or payment of such dividend or other payment.

SECTION 4.9 SECURITIZATION TRANSACTIONS AND ADDITIONAL INDEBTEDNESS.

         Notwithstanding any provision to the contrary within this Indenture,
the Company shall not be prohibited, restricted or otherwise limited under this
Indenture from entering into, sponsoring or conducting any Qualified Sales and
Financing Transaction.

         Except as otherwise provided in Section 4.8(b), the Company shall not
be prohibited, restricted or otherwise limited from incurring or refinancing any
Indebtedness subsequent to the date hereof, which Indebtedness will have such
terms and provisions as the Company and the lender thereof may agree upon
without any restriction or limitation hereunder and such Indebtedness will
likely be senior in right of payment to the Securities.

                                   ARTICLE V

                                   SUCCESSORS

SECTION 5.1 WHEN THE COMPANY MAY MERGE, ETC.

                  (a) The Company may not consolidate or merge with or into
         (whether or not the Company is the surviving corporation), or sell,
         assign, transfer, lease, convey or otherwise dispose of all or
         substantially all of its properties or assets in one or more related
         transactions to another corporation, Person or entity unless (i) the
         Company is the surviving corporation or the entity or the Person formed
         by or surviving any such consolidation or merger (if other than the
         Company) or to which such sale, assignment, transfer, lease, conveyance

INDENTURE - Page 24
<PAGE>

         or other disposition shall have been made is a corporation, limited
         liability company or limited partnership organized or existing under
         the laws of the United States, any state thereof or the District of
         Columbia; (ii) the entity or Person formed by or surviving any such
         consolidation or merger (if other than the Company) or the entity or
         Person to which such sale, assignment, transfer, lease, conveyance or
         other disposition will have been made assumes all the obligations of
         the Company pursuant to a supplemental indenture in a form reasonably
         satisfactory to the Trustee, under the Securities and this Indenture;
         and (iii) immediately after such transaction no Default or Event of
         Default exists.

(b)      The Company shall deliver to the Trustee prior to the consummation of
         the proposed transaction an Officers' Certificate to the foregoing
         effect and an Opinion of Counsel stating that the proposed transaction
         and such supplemental indenture comply with this Indenture. The Trustee
         shall be entitled to conclusively rely upon such Officers' Certificate
         and Opinion of Counsel.

SECTION 5.2 SUCCESSOR ENTITY SUBSTITUTED.

         Upon any consolidation or merger, or any sale, lease, conveyance or
other disposition of all or substantially all of the assets of the Company in
accordance with Section 5.1, the successor entity or Person formed by such
consolidation or into or with which the Company, is merged or to which such
sale, lease, conveyance or other disposition is made shall succeed to, and be
substituted for, and may exercise every right and power of, the Company under
this Indenture with the same effect as if such successor entity or Person has
been named as the Company herein, and upon such succession and substitution, the
Company shall be released from all of its obligations and liabilities under this
Indenture and the Securities.

                                   ARTICLE VI

                              DEFAULTS AND REMEDIES

SECTION 6.1 EVENTS OF DEFAULT.

         An "EVENT OF DEFAULT" occurs if:

                  (a) the Company fails to pay interest on a Security when the
         same becomes due and payable and such failure continues for a period of
         15 days, whether or not such payment is prohibited by the provisions of
         Article X hereof;

                  (b) the Company fails to pay the principal amount of any
         Security when the same becomes due and payable on any Payment Date, and
         such failure continues for a period of 15 days, whether or not
         prohibited by the provisions of Article X hereof;

                  (c) the Company fails to observe or perform any material
         covenant, condition or agreement on the part of the Company under this
         Indenture or the breach by the Company of any material representation
         or warranty of the Company under this Indenture, and such failure or
         breach continues unremedied for a period of 60 days after the Company's
         receipt of written notice of such failure or breach;

INDENTURE - Page 25
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                  (d) the Company defaults in any other payment obligation of
         the Company (other than a payment obligation relating to a Qualified
         Sales and Financing Transaction) with an outstanding principal amount
         in excess of $1,000,000, such default results in such payment
         obligation becoming or being declared immediately due and payable and
         such declaration is not rescinded or annulled within a period of 60
         days after the Company's receipt of written notice of such declaration;

                  (e) 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; (iv) makes a general assignment for
         the benefit of its creditors; or (v) admits in writing its inability to
         pay debts as the same become due; or

                  (f) a court of competent jurisdiction enters an order or
         decree under any Bankruptcy Law that (i) is for relief against the
         Company in an involuntary case; (ii) appoints a custodian of the
         Company or for all or substantially all of its property; (iii) orders
         the liquidation of the Company, and in each case the order or decree
         remains unstayed and in effect for 120 consecutive days.

         The term "BANKRUPTCY LAW" means Title 11 of the U.S. Code or any
similar federal or state law for the relief of debtors. The term "custodian"
means any receiver, trustee, assignee, liquidator or similar official under any
Bankruptcy Law.

         A Default under clause (c) of this Section 6.1 (except for a Default
with respect to Section 4.6 or 5.1) is not an Event of Default until the Trustee
or the Holders of at least a majority in principal amount of the then
outstanding Securities notify the Company in writing of the Default and the
Company does not cure the Default or such Default is not waived within 60 days
after receipt of the notice pursuant to Section 6.4. The notice must specify the
Default, demand that it be remedied and state that the notice is a "Notice of
Default."

SECTION 6.2 ACCELERATION.

         If an Event of Default (other than an Event of Default specified in
clauses (e) or (f) of Section 6.1) occurs and is continuing, the Trustee by
notice to the Company or the Holders of at least a majority in principal amount
of the then outstanding Securities by written notice to the Company and the
Trustee may declare the unpaid principal of and any accrued interest on all the
Securities to be due and payable. Upon such declaration, all unpaid principal of
and accrued interest on all Securities shall be due and payable immediately;
provided, however, that if any Indebtedness or Obligation is outstanding
pursuant to, or with respect to, the Senior Debt, such a declaration of
acceleration by the Holders shall not become effective until the later of (i)
the day which is five Business Days after the receipt by each of the Company and
the holders of Senior Debt of such written notice of acceleration or (ii) the
date of acceleration of any Indebtedness under any Senior Debt; and provided,
further, that, so long as any Senior Debt is outstanding, any such declaration
by the Trustee or the Holders shall not become effective if any period during
which the Company is not permitted to make payment on account of the Securities
pursuant to Section 10.3 is then in effect. If an Event of Default specified in
clause (e) or (f) of Section 6.1 occurs, all unpaid principal of and accrued
interest on all Securities shall ipso facto become and be immediately due and
payable without any declaration or other act on the part of the Trustee or any
Holder.

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<PAGE>

SECTION 6.3 OTHER REMEDIES.

         If an Event of Default occurs and is continuing, the Trustee may, after
a declaration of acceleration under Section 6.2 above, pursue any available
remedy to collect the payment of principal or interest on the Securities or to
enforce the performance of any provision of the Securities or this Indenture.
The Trustee may maintain a proceeding even if it does not possess any of the
Securities or does not produce any of them in the proceeding. A delay or
omission by the Trustee or any Holder in exercising any right or remedy accruing
upon an Event of Default shall not impair the right or remedy or constitute a
waiver of or acquiescence in the Event of Default. All remedies are cumulative
to the extent permitted by law.

SECTION 6.4 WAIVER OF PAST DEFAULTS.

         Holders of a majority in principal amount of the then outstanding
Securities by notice to the Trustee may, on behalf of the Holders of all
Securities, waive any existing Default or Event of Default and its consequences
under this Indenture, including without limitation a rescission of an
acceleration pursuant to Section 6.2, except for a continuing Default or Event
of Default in the payment of interest on or the principal of any Security held
by a non-consenting Holder, or except for a waiver that would conflict with any
judgment or decree. Upon actual receipt of any such notice of waiver by a
Responsible Officer of the Trustee, such Default shall cease to exist, and any
Event of Default arising therefrom shall be deemed to have been cured for every
purpose of this Indenture; but no such waiver shall extend to any subsequent or
other Default or Event of Default or impair any right consequent thereon.

SECTION 6.5 CONTROL BY MAJORITY.

         The Holders of a majority in principal amount of the then outstanding
Securities may direct the time, method and place of conducting any proceeding
for any remedy available to the Trustee or exercising any trust or power
conferred on it, provided, that indemnification for the Trustee's fees and
expenses, in a form reasonably satisfactory to the Trustee, shall have been
provided. However, the Trustee may refuse to follow any direction that conflicts
with law or this Indenture, that the Trustee determines may be unduly
prejudicial to the rights of other Holders, or that may involve the Trustee in
personal liability.

SECTION 6.6 LIMITATION ON SUITS.

         A Holder may pursue a remedy with respect to this Indenture only if:

                  (a) the Holder gives to the Trustee written notice of a
         continuing Event of Default;

                  (b) the Holders of at least a majority in principal amount of
         the then outstanding Securities make a written request to the Trustee
         to pursue the remedy;

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<PAGE>

                  (c) such Holder or Holders offer and, if requested, provide to
         the Trustee indemnity satisfactory to the Trustee against any loss,
         liability or expense;

                  (d) the Trustee does not comply with the request within 60
         days after receipt of the request and the offer and, if requested, the
         provision of indemnity; and

                  (e) during such 60 day period the Holders of a majority in
         principal amount of the then outstanding Securities do not give the
         Trustee a direction inconsistent with the request.

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

SECTION 6.7 RIGHTS OF HOLDERS TO RECEIVE PAYMENT.

         Notwithstanding any other provision of this Indenture, but subject to
Article X hereof, the right of any Holder of a Security to receive payment of
principal and interest on the Security, on or after the respective due dates
expressed in the Security, or to bring suit for the enforcement of any such
payment on or after such respective dates, shall not be impaired or affected
without the consent of the Holder.

SECTION 6.8 COLLECTION SUIT BY TRUSTEE.

         If an Event of Default specified in Section 6.1(a) or (b) occurs and is
continuing, the Trustee is authorized to recover judgment in its own name and as
trustee of an express trust against the Company for the whole amount of
principal and interest remaining unpaid on the Securities and interest on
overdue principal and, to the extent lawful, interest and such further amount as
shall be sufficient to cover the costs and expenses of collection, including the
reasonable compensation, expenses, disbursements and advances of the Trustee,
its agents and counsel.

SECTION 6.9 TRUSTEE MAY FILE PROOFS OF CLAIM.

                  (a) The Trustee is authorized to file such proofs of claim and
         other papers or documents as may be necessary or advisable in order to
         have the claims of the Trustee (including any claim for the reasonable
         compensation, expenses, disbursements and advances of the Trustee, its
         agents and counsel) and the Holders allowed in any judicial proceedings
         relative to the Company (or any other obligor upon the Securities), its
         creditors or its property and shall be entitled and empowered to
         collect, receive and distribute any money or other property payable or
         deliverable on any such claims and any custodian in any such judicial
         proceeding is hereby authorized by each Holder to make such payments to
         the Trustee, and in the event that the Trustee shall consent to the
         making of such payments directly to the Holders, to pay to the Trustee
         any amount due to it for the reasonable compensation, expenses,
         disbursements and advances of the Trustee, its agents and counsel, and
         any other amounts due the Trustee under Section 7.7 hereof. To the
         extent that the payment of any such compensation, expenses,

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<PAGE>

         disbursements and advances of the Trustee, its agents and counsel, and
         any other amounts due the Trustee under Section 7.7 hereof out of the
         estate in any such proceeding, shall be denied for any reason, payment
         of the same shall be secured by a lien on, and shall be paid out of,
         any and all distributions, dividends, money, securities and other
         properties which the Holders of the Securities may be entitled to
         receive in such proceeding whether in liquidation or under any plan of
         reorganization or arrangement or otherwise. Nothing herein contained
         shall be deemed to authorize the Trustee to authorize or consent to or
         accept or adopt on behalf of any Holder any plan of reorganization,
         arrangement, adjustment or composition affecting the Securities or the
         rights of any Holder thereof, or to authorize the Trustee to vote in
         respect of the claim of any Holder in any such proceeding.

                  (b) If the Trustee does not file a proper claim or proof of
         debt in the form required in any such proceeding prior to 30 days
         before the expiration of the time to file such claims or proofs, then
         any holder of Senior Debt shall have the right to demand, sue for,
         collect and receive the payments and distributions in respect of the
         Securities which are required to be paid or delivered to the holders of
         Senior Debt as provided in Article X hereof and to file and prove all
         claims therefor and to take all such other action in the name of the
         Holders or otherwise, as such holder of Senior Debt may determine to be
         necessary or appropriate for the enforcement of the provisions of
         Article X hereof.

SECTION 6.10 PRIORITIES.

         If the Trustee collects any money pursuant to this Article, it shall,
subject to the provisions of Article X hereof, pay out the money in the
following order:

                  (a) FIRST: to the Trustee, its agents and attorneys for
         amounts due under Section 7.7, including payment of all compensation,
         expenses and liabilities incurred, and all advances made, if any, by
         the Trustee and the costs and expenses of collection;

                  (b) SECOND: to holders of Senior Debt to the extent required
         by Article X hereof;

                  (c) THIRD: to (i) Holders for amounts due and unpaid on the
         Securities for principal and interest, and (ii) holders of Pari Passu
         Debt for amounts due and unpaid on such Pari Passu Debt for principal
         and interest, ratably, without preference or priority of any kind,
         according to the amounts due and payable on the Securities and/or such
         Pari Passu Debt for principal and interest, respectively; and

                  (d) FOURTH: to the Company or to such party as a court of
         competent jurisdiction shall direct.

         The Trustee may fix a record date and payment date for any payment to
Holders.

SECTION 6.11 UNDERTAKING FOR COSTS.

         In any suit for the enforcement of any right or remedy under this
Indenture or in any suit against the Trustee for any action taken or omitted by
it as a Trustee, a court in its discretion may require the filing by any party
litigant in the suit of an undertaking to pay the costs of the suit, and the
court in its discretion may assess reasonable costs, including reasonable
attorneys' fees, against any party litigant in the suit, having due regard to
the merits and good faith of the claims or defenses made by the party litigant.
This Section does not apply to a suit by the Trustee, a suit by a Holder
pursuant to Section 6.7, or a suit by Holders of more than ten percent (10%) in
principal amount of the then outstanding Securities.

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<PAGE>

                                  ARTICLE VII

                                     TRUSTEE

SECTION 7.1 DUTIES OF TRUSTEE.

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

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

                           (i) The duties of the Trustee shall be determined
                  solely by the express provisions of this Indenture and the
                  Trustee need perform only those duties that are specifically
                  set forth in this Indenture and no others, and no implied
                  covenants or obligations shall be read into this Indenture
                  against the Trustee.

                           (ii) In the absence of bad faith on its part, the
                  Trustee may conclusively rely, as to the truth of the
                  statements and the correctness of the opinions expressed
                  therein, upon resolutions, statements, reports, documents,
                  orders, certificates, opinions or other instruments furnished
                  to the Trustee and conforming to the requirements of this
                  Indenture. However, in the case of any of the above that are
                  specifically required to be furnished to the Trustee pursuant
                  to this Indenture, the Trustee shall examine them to determine
                  whether they substantially conform to the requirements of this
                  Indenture.

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

                           (i) This paragraph does not limit the effect of
                  paragraph (b)(i) and (b)(ii) of this Section.

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

                           (iii) The Trustee shall not be liable to the Holders
                  with respect to any action it takes or omits to take in good
                  faith in accordance with a direction received by it pursuant
                  to Section 6.5.

                  (d) Whether or not therein expressly so provided, every
         provision of this Indenture that in any way relates to the Trustee is
         subject to paragraphs (a), (b) and (c) of this Section.

INDENTURE - Page 30
<PAGE>

                  (e) No provision of this Indenture shall require the Trustee
         to expend or risk its own funds or incur any liability. The Trustee may
         refuse to perform any duty or exercise any right or power unless it
         receives indemnity satisfactory to it against any loss, liability or
         expense.

                  (f) The Trustee shall not be liable for interest on any money
         received by it, except as the Trustee may agree in writing with the
         Company or, except with respect to any money held by the Trustee over a
         holiday or weekend, in which event the Trustee shall remit to the
         Company the interest earnings on such money at a rate equal to the then
         current rate for money market funds invested by the Trustee; provided
         that the Company has directed the Trustee to invest such money. Money
         held in trust by the Trustee need not be segregated from other funds
         except to the extent required by law.

SECTION 7.2 RIGHTS OF TRUSTEE.

                  (a) The Trustee may conclusively rely upon any document
         believed by it to be genuine and to have been signed or presented to it
         by the proper Person. The Trustee need not investigate any fact or
         matter stated in the document. The Trustee shall have no duty to
         inquire as to the performance of the Company's covenants in Article IV
         hereof. In addition, the Trustee shall not be deemed to have knowledge
         of any Default or any Event of Default except any Default or Event of
         Default of which the Trustee shall have received written notification
         or obtained actual knowledge.

         Delivery of reports, information and documents to the Trustee under
         Sections 4.3(a), 4.3(b) and 4.4(b) is for informational purposes only
         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 hereunder (as to which
         the Trustee is entitled to rely conclusively on Officers'
         Certificates).

                  (b) Before the Trustee acts or refrains from acting, it may
         require an Officers' Certificate or an Opinion of Counsel or both. The
         Trustee shall not be liable for any action it takes or omits to take in
         good faith in reliance on such Officers' Certificate or Opinion of
         Counsel. 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 from liability in respect of any action
         taken, suffered or omitted by it hereunder in good faith and in
         reliance thereon.

                  (c) The Trustee may act through agents, attorneys, custodians
         or nominees and shall not be responsible for the misconduct or
         negligence or the supervision of any agents, attorneys, custodians or
         nominees appointed by it with due care.

                  (d) The 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 the rights or powers conferred upon it by this Indenture.

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<PAGE>

                  (e) Unless otherwise specifically provided in this Indenture,
         any demand, request, direction or notice from the Company shall be
         sufficient if signed by an Officer of the Company.

                  (f) The Trustee shall not be deemed to have notice of an Event
         of Default for any purpose under this Indenture unless notified of such
         Event of Default by the Company, the Paying Agent (if other than the
         Company) or a Holder of the Securities.

SECTION 7.3 INDIVIDUAL RIGHTS OF TRUSTEE.

         The Trustee in its individual or any other capacity may become the
owner or pledgee of Securities and may otherwise deal with the Company or an
Affiliate of the Company with the same rights it would have if it were not
Trustee. Any Agent may do the same with like rights. However, the Trustee is
subject to Sections 7.10 and 7.11.

SECTION 7.4 TRUSTEE'S DISCLAIMER.

         The Trustee shall not be responsible for and makes no representation as
to the validity or adequacy of this Indenture or the Securities, it shall not be
accountable for the Company's use of the proceeds from the Securities or any
money paid to the Company or upon the Company's direction under any provision
hereof, it shall not be responsible for the use or application of any money
received by any Paying Agent other than the Trustee and it shall not be
responsible for any statement or recital herein or any statement in the
Securities or any other document in connection with the sale of the Securities
or pursuant to this Indenture other than its certificate of authentication.

SECTION 7.5 NOTICE OF DEFAULTS.

         If an Event of Default occurs and is continuing and if it is known to a
Responsible Officer of the Trustee, the Trustee shall mail to Holders a notice
of the Event of Default within 90 days after it occurs or as soon as practicable
after it is known to a Responsible Officer of the Trustee. Except in the case of
an Event of Default in payment on any Security, the Trustee may withhold the
notice if and so long as the Responsible Officer of the Trustee in good faith
determines that withholding the notice is in the interests of the Holders.

SECTION 7.6 REPORTS BY TRUSTEE TO HOLDERS.

                  (a) Within 60 days of the end of each Fiscal Year, commencing
         with the fiscal year ending December 31, 2006, the Trustee shall mail
         to Holders (with a copy to the Company) a brief report dated as of such
         reporting date that complies with TIA ss. 313(a) (but if no event
         described in TIA ss. 313(a) has occurred within the 12 months preceding
         the reporting date, no report need be prepared or transmitted). The
         Trustee also shall comply with TIA ss. 313(b). The Trustee shall also
         transmit by mail all reports as required by TIA ss. 313(c).

INDENTURE - Page 32
<PAGE>

                  (b) Commencing at the time this Indenture is qualified under
         the TIA, a copy of each report mailed to Holders under this Section 7.6
         (at the time of its mailing to Holders) shall be filed with the SEC and
         each stock exchange, if any, on which the Securities are listed. The
         Company shall promptly notify the Trustee if and when the Securities
         are listed on any stock exchange.

SECTION 7.7 COMPENSATION AND INDEMNITY.

                  (a) The Company shall pay to the Trustee from time to time
         reasonable compensation for its acceptance of this Indenture and its
         performance of the duties and services required hereunder. The
         Trustee's compensation shall not be limited by any law on compensation
         of a trustee of an express trust. The Company shall reimburse the
         Trustee promptly upon request for all reasonable disbursements,
         advances and expenses incurred or made by it in addition to the
         compensation for its services. Such expenses shall include the
         reasonable compensation, disbursements and expenses of the Trustee's
         agents and counsel.

                  (b) The Company shall indemnify the Trustee against any and
         all losses, liabilities or expenses incurred by it arising out of or in
         connection with the acceptance or administration of its duties under
         this Indenture, except as set forth in Section 7.7(d). The Trustee
         shall notify the Company promptly of any claim for which it may seek
         indemnity. Failure by the Trustee to so notify the Company shall not
         relieve the Company of its obligations hereunder, except to the extent
         the Company is prejudiced thereby. The Company shall defend the claim
         and the Trustee shall reasonably cooperate in such defense. The Trustee
         may have separate counsel and the Company shall pay the reasonable fees
         and expenses of one such counsel. The Company need not pay for any
         settlement made without its consent, which consent shall not be
         unreasonably withheld.

                  (c) The obligations of the Company to pay compensation under
         Section 7.7(a) through the date of termination, and for indemnification
         under Section 7.7(b) shall survive the satisfaction and discharge of
         this Indenture.

                  (d) The Company need not reimburse any expense or indemnify
         against any loss or liability incurred by the Trustee through its own
         negligence, bad faith or willful misconduct.

                  (e) To secure the Company's payment obligations in this
         Section, the Trustee shall have a lien prior to the Securities on all
         money or property held or collected by the Trustee, except that held in
         trust to pay principal and interest on the Securities or to pay Senior
         Debt. Such lien shall survive the satisfaction and discharge of this
         Indenture.

                  (f) When the Trustee incurs expenses or renders services after
         an Event of Default specified in Section 6.1(e) or (f) occurs, the
         expenses and the compensation for the services are intended to
         constitute expenses of administration under any Bankruptcy Law.

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<PAGE>

SECTION 7.8 REPLACEMENT OF TRUSTEE.

                  (a) A resignation or removal of the Trustee and appointment of
         a successor Trustee shall become effective only upon the successor
         Trustee's acceptance of appointment as provided in this Section 7.8.

                  (b) The Trustee may resign at any time and be discharged from
         the trust hereby created by so notifying the Company. The Holders of a
         majority of the aggregate principal amount of the outstanding
         Securities may remove the Trustee (including any successor Trustee) at
         any time by so notifying the Trustee and the Company in writing. The
         Company may remove the Trustee if:

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

                           (ii) the Trustee is adjudged a bankrupt or an
                  insolvent or an order for relief is entered with respect to
                  the Trustee under any Bankruptcy Law;

                           (iii) a Custodian or public officer takes charge of
                  the Trustee or its property;

                           (iv) the Trustee becomes incapable of acting as
                  Trustee under this Indenture, or

                           (v) the Company so elects, provided such replacement
                  Trustee is qualified.

                  (c) If the Trustee resigns or is removed or if a vacancy
         exists in the office of Trustee for any reason, the Company shall
         promptly appoint a successor Trustee.

                  (d) If a successor Trustee does not take office within 30 days
         after notice that the Trustee has resigned or has been removed, the
         Company or the Trustee or the Holders of at least a majority in
         principal amount of the then outstanding Securities may petition any
         court of competent jurisdiction for the appointment of a successor
         Trustee.

                  (e) If the Trustee after written request by any Holder who has
         been a Holder for at least six months fails to comply with Section
         7.10, such Holder may petition any court of competent jurisdiction for
         the removal of the Trustee and the appointment of a successor Trustee.

                  (f) A successor Trustee shall deliver a written acceptance of
         its appointment to the retiring Trustee and to the Company. Thereupon
         the resignation or removal of the retiring Trustee shall become
         effective, and the successor Trustee shall have all the rights, powers
         and duties of the Trustee under this Indenture. The successor Trustee
         shall mail a notice of its succession to all Holders. The retiring
         Trustee shall promptly transfer all property held by it as Trustee to
         the successor Trustee, provided all sums owing to the Trustee hereunder
         have been paid and subject to the lien provided for in Section 7.7.
         Notwithstanding replacement of the Trustee pursuant to this Section
         7.8, the Company's obligations to pay compensation under Section 7.7(a)
         through the date of termination, and for indemnification under Section
         7.7(b) hereof shall continue for the benefit of the retiring Trustee.

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<PAGE>

SECTION 7.9 SUCCESSOR TRUSTEE BY MERGER, ETC.

         If the Trustee consolidates, merges or converts into, or transfers all
or substantially all of its corporate trust business to, another corporation,
the successor corporation without any further act shall be the successor
Trustee.

SECTION 7.10 ELIGIBILITY; DISQUALIFICATION.

                  (a) There shall at all times be a Trustee hereunder which
         shall be a corporation organized and doing business under the laws of
         the United States of America or of any state or territory thereof or of
         the District of Columbia authorized under such laws to exercise
         corporate trustee power, shall be subject to supervision or examination
         by Federal, state, territorial or District of Columbia authority and
         shall have a combined capital and surplus of at least $5,000,000 as set
         forth in its most recent published annual report of condition.

                  (b) This Indenture shall always have a Trustee who satisfies
         the requirements of TIA ss. 310(a)(1) and (2). The Trustee shall be
         subject to TIA ss. 310(b).

SECTION 7.11 PREFERENTIAL COLLECTION OF CLAIMS AGAINST COMPANY.

         The Trustee shall be subject to TIA ss. 311(a), excluding any creditor
relationship listed in TIA ss. 311(b). A Trustee who has resigned or been
removed shall be subject to TIA ss. 311(a) to the extent indicated therein.

                                  ARTICLE VIII

                             DISCHARGE OF INDENTURE

SECTION 8.1 TERMINATION OF COMPANY'S OBLIGATIONS.

                  (a) This Indenture shall cease to be of further effect (except
         that the Company's obligations to pay compensation under Section 7.7(a)
         through the date of termination, and for indemnification under Section
         7.7(b) and its obligations under Section 8.4, and the Company's,
         Trustee's and Paying Agent's obligations under Section 8.3 shall
         survive) when, without violating Article X hereof, all outstanding
         Securities have been paid in full and the Company has paid all sums
         payable by the Company hereunder. In addition, the Company may
         terminate all of its obligations under this Indenture if, without
         violating Article X hereof:

                           (i) the Company irrevocably deposits in trust with
                  the Trustee or, at the option of the Trustee, with a trustee
                  reasonably satisfactory to the Trustee and the Company under
                  the terms of an irrevocable trust agreement in form and
                  substance satisfactory to the Trustee, money or U.S.
                  Government Obligations sufficient (as certified by an
                  independent public accountant designated by the Company) to
                  pay principal and interest on the Securities to maturity or
                  redemption, as the case may be, and to pay all other sums
                  payable by it hereunder, provided that (A) the trustee of the

INDENTURE - Page 35
<PAGE>

                  irrevocable trust shall have been irrevocably instructed to
                  pay such money or the proceeds of such U.S. Government
                  Obligations to the Trustee and (B) the Trustee shall have been
                  irrevocably instructed to apply such money or the proceeds of
                  such U.S. Government Obligations to the payment of said
                  principal and interest with respect to the Securities;

                           (ii) the Company delivers to the Trustee an Officers'
                  Certificate stating that all conditions precedent to
                  satisfaction and discharge of this Indenture have been
                  complied with; and

                           (iii) no Default or Event of Default with respect to
                  the Securities shall have occurred and be continuing on the
                  date of such deposit.

         Then, this Indenture shall cease to be of further effect (except as
         provided in this paragraph), and the Trustee, on demand of the Company,
         shall execute proper instruments acknowledging confirmation of and
         discharge under this Indenture. The Company may make the deposit only
         if Article X hereof does not prohibit such payment. However, the
         Company's obligations in Sections 2.3, 2.4, 2.5, 2.6, 2.7, 4.2, 7.7(c),
         7.8, 8.3 and 8.4 and the Trustee's and Paying Agent's obligations in
         Section 8.3 shall survive until the Securities are no longer
         outstanding. Thereafter, only the Company's obligations to pay
         compensation under Section 7.7(a) through the date of termination, and
         for indemnification under Section 7.7(b), its obligations under Section
         8.4 and the Company's, Trustee's and Paying Agent's obligations in
         Section 8.3 shall survive.

                  (b) After such irrevocable deposit made pursuant to this
         Section 8.1 and satisfaction of the other conditions set forth herein,
         the Trustee upon written request shall acknowledge in writing the
         discharge of the Company's obligations under this Indenture except for
         those surviving obligations specified above.

                  (c) In order to have money available on a payment date to pay
         principal or interest on the Securities, the U.S. Government
         Obligations shall be payable as to principal or interest at least one
         Business Day before such payment date in such amounts as will provide
         the necessary money. U.S. Government Obligations shall not be callable
         at the issuer's option.

SECTION 8.2 APPLICATION OF TRUST MONEY.

         The Trustee or a trustee satisfactory to the Trustee and the Company
shall hold in trust money or U.S. Government Obligations deposited with it
pursuant to Section 8. 1. It shall apply the deposited money and the money from
U.S. Government Obligations through the Paying Agent and in accordance with this
Indenture to the payment of principal and interest on the Securities.

INDENTURE - Page 36
<PAGE>

SECTION 8.3 REPAYMENT TO COMPANY.

                  (a) The Trustee and the Paying Agent shall promptly pay to the
         Company upon written request any excess money or securities held by
         them at any time.

                  (b) The Trustee and the Paying Agent shall pay to the Company
         upon written request any money held by them for the payment of
         principal or interest on the Securities that remains unclaimed for two
         years after the date upon which such payment shall have become due;
         provided, however, that the Company shall have either caused notice of
         such payment to be mailed to each Holder entitled thereto no less than
         30 days prior to such repayment or within such period shall have
         published such notice in a newspaper of widespread circulation
         published in Orange County, California. After payment to the Company,
         Holders entitled to the money must look to the Company for payment as
         general creditors unless an applicable abandoned property law
         designates another Person, and all liability of the Trustee and such
         Paying Agent with respect to such money shall cease.

SECTION 8.4 REINSTATEMENT.

         If the Trustee or Paying Agent is unable to apply any money or U.S.
Government Obligations in accordance with Section 8.2 by reason of any legal
proceeding or by reason of any order or judgment of any court or governmental
authority enjoining, restraining or otherwise prohibiting such application, the
Company's obligations under this Indenture and the Securities shall be revived
and reinstated as though no deposit had occurred pursuant to Section 8.1 until
such time as the Trustee or Paying Agent is permitted to apply all such money or
U.S. Government Obligations in accordance with Section 8.2; provided, however,
that if the Company has made any payment of interest on or principal of any
Securities because of the reinstatement of its obligations, the Company shall be
subrogated to the rights of the Holders of such Securities to receive such
payment, as long as no money is owed to the Trustee by the Company, from the
money or U.S. Government Obligations held by the Trustee or Paying Agent.

                                   ARTICLE IX

                                   AMENDMENTS

SECTION 9.1 WITHOUT CONSENT OF THE HOLDERS.

         The Company and the Trustee may amend this Indenture or the Securities
without the consent of any Holder:

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

                  (b) to comply with Section 5.1;

                  (c) to provide for the issuance of uncertificated Securities
         or certificated Securities in excess of an aggregate outstanding
         principal balance of $100 million;

INDENTURE - Page 37
<PAGE>

                  (d) to make any change that does not adversely affect the
         legal rights hereunder of any Holder, including but not limited to, an
         increase in the aggregate dollar amount of Securities which may be
         outstanding under this Indenture;

                  (e) make any change in Section 3.2; provided, however, that no
         such change shall adversely affect the rights of any outstanding or
         issued Security; or

                  (f) to comply with any requirements of the SEC in connection
         with the qualification of this Indenture under the TIA.

SECTION 9.2 WITH CONSENT OF THE HOLDERS.

                  (a) The Company and the Trustee may amend this Indenture or
         the Securities with the written consent of the Holders of at least a
         majority in principal amount of the then outstanding Securities. The
         Holders of a majority in principal of the then outstanding Securities
         may also waive on behalf of all Holders any existing Default or Event
         of Default or compliance with any provision of this Indenture or the
         Securities. However, without the consent of the Holder of each Security
         affected, an amendment or waiver under this Section may not (with
         respect to any Security held by a nonconsenting Holder):

                           (i) reduce the aggregate principal amount of
                  Securities whose Holders must consent to an amendment,
                  supplement or waiver;

                           (ii) reduce the rate of or change the time for
                  payment of interest, including default interest, on any
                  outstanding Security;

                           (iii) reduce the principal of or change the fixed
                  maturity of any Security or alter the redemption provisions or
                  the price at which the Company shall offer to purchase such
                  Security pursuant to Section 3.1 of Article III hereof;

                           (iv) make any Security payable in money other than
                  that stated in the Prospectus;

                           (v) modify or eliminate the right of the estate of a
                  Holder or a Holder to cause the Company to repurchase a
                  Security upon the death or Total Permanent Disability of a
                  Holder pursuant to Article III; provided, however, that the
                  Company may not modify or eliminate such right, as it may be
                  in effect on the Issue Date, of any Security which was issued
                  with such right, and after an amendment under this subsection
                  9.2(a)(v) becomes effective, the Company shall mail to the
                  Holders of each Security then outstanding a notice briefly
                  describing the amendment;

                           (vi) make any change in Section 6.4 or 6.7 hereof or
                  in this sentence of this Section 9.2;

                           (vii) make any change in Article X that materially
                  adversely affects the rights of any Holders; or

INDENTURE - Page 38
<PAGE>

                           (viii) waive a Default or Event of Default in the
                  payment of principal of or interest on any Security (except a
                  rescission of acceleration of the Securities by the Holders of
                  at least a majority in aggregate principal amount of the
                  Securities and a waiver of the payment default that resulted
                  from such acceleration).

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

                  (c) After an amendment or waiver under this Section becomes
         effective, the Company shall mail to the Holders of each Security
         affected thereby a notice briefly describing the amendment or waiver.
         Any failure of the Company to mail such notice, or any defect therein,
         shall not, however, in any way impair or affect the validity of any
         such supplemental indenture or waiver. Subject to Sections 6.4 and 6.7
         hereof, the Holders of a majority in principal amount of the Securities
         then outstanding may waive compliance in a particular instance by the
         Company with any provision of this Indenture or the Securities.

SECTION 9.3 COMPLIANCE WITH TRUST INDENTURE ACT.

         If at the time this Indenture shall be qualified under the TIA, every
amendment to this Indenture or the Securities shall be set forth in a
supplemental indenture that complies with the TIA as then in effect.

SECTION 9.4 EFFECT OF CONSENTS.

                  (a) Until an amendment or waiver becomes effective, a consent
         to it by a Holder of a Security is a continuing consent by the Holder
         and every subsequent Holder of a Security or portion of a Security that
         evidences the same debt as the consenting Holder's Security, even if
         notation of the consent is not made on any Security. An amendment or
         waiver becomes effective in accordance with its terms and thereafter
         binds every Holder.

                  (b) The Company may fix a record date for determining which
         Holders must consent to such amendment or waivers. If the Company fixes
         a record date, the record date shall be fixed at (i) the later of 30
         days prior to the first solicitation of such consent or the date of the
         most recent list of Holders furnished to the Trustee prior to such
         solicitation pursuant to Section 2.5, or (ii) such other date as the
         Company shall designate.

SECTION 9.5 NOTATION ON OR EXCHANGE OF SECURITIES.

         The Trustee may place an appropriate notation about an amendment or
waiver on any Security, if certificated, or any Account statement. Failure to
make any notation or issue a new Security shall not affect the validity and
effect of such amendment or waiver.

INDENTURE - Page 39
<PAGE>

SECTION 9.6 TRUSTEE TO SIGN AMENDMENTS, ETC.

         The Trustee shall sign any amendment or supplemental indenture
authorized pursuant to this Article IX if, in the Trustee's reasonable
discretion, the amendment does not adversely affect the rights, duties,
liabilities or immunities of the Trustee. If it does, the Trustee may, but need
not, sign it. In signing or refusing to sign such amendment or supplemental
indenture, the Trustee shall be entitled to receive, if requested, an indemnity
reasonably satisfactory to it and to receive and, subject to Section 7.1, shall
be fully protected in relying upon, an Officers' Certificate and an Opinion of
Counsel (or written advice of counsel) as conclusive evidence that such
amendment or supplemental indenture is authorized or permitted by this
Indenture, that it is not inconsistent herewith, and that it will be valid and
binding upon the Company in accordance with its terms. The Company may not sign
an amendment or supplemental indenture until its Board of Directors approves it.

                                   ARTICLE X

                                  SUBORDINATION

SECTION 10.1 AGREEMENT TO SUBORDINATE.

                  (a) The Company agrees, and each Holder by accepting a
         Security consents and agrees, that the Indebtedness evidenced by the
         Securities and the payment of the principal of, and interest on and
         other amounts owing with respect to, the Securities is subordinated in
         right of payment, to the extent and in the manner provided in this
         Article, to the prior payment in full, in cash, cash equivalents or
         otherwise in a manner satisfactory to the holders of Senior Debt, of
         all Obligations due in respect of Senior Debt of the Company whether
         outstanding on the date hereof or hereafter incurred, and that the
         subordination is for the benefit of the holders of Senior Debt.

                  (b) For purposes of this Article X, a payment or distribution
         on account of the Securities may consist of cash, property or
         securities, by set-off or otherwise, and a payment or distribution on
         account of any of the Securities shall include, without limitation, any
         redemption, purchase or other acquisition of the Securities.

SECTION 10.2 LIQUIDATION; DISSOLUTION; BANKRUPTCY.

                  (a) Upon any payment or distribution of assets of the Company
         of any kind or character, whether in cash, property or securities, to
         creditors upon (i) any dissolution or winding-up or total or partial
         liquidation or reorganization of the Company whether voluntary or
         involuntary and whether or not involving insolvency or bankruptcy or
         (ii) any bankruptcy or insolvency case or proceeding or any
         receivership, liquidation, reorganization or other similar case or
         proceeding in connection therewith, relative to the Company or to its
         assets, (iii) any assignment for the benefit of creditors or any other
         marshaling of assets of the Company, all obligations due, or to become
         due, in respect of Senior Debt (including interest after the
         commencement of any such proceeding at the rate specified in the
         applicable Senior Debt) shall first indefeasibly be paid in full, or
         provision shall have been made for such payment, in cash, cash
         equivalents or otherwise in a manner satisfactory to the holders of
         Senior Debt, before any payment is made on account of the principal of

INDENTURE - Page 40
<PAGE>

         or interest on the Securities. Upon any such dissolution, winding-up,
         liquidation or reorganization, any payment or distribution of assets of
         the Company of any kind or character, whether in cash, property or
         securities, to which the Holders of the Securities or the Trustee under
         this Indenture would be entitled, except for the provisions hereof,
         shall be paid by the Company or by any receiver, trustee in bankruptcy,
         liquidating trustee, agent or other Person making such payment or
         distribution, or by the Holders of the Securities or by the Trustee
         under this Indenture if received by them, directly to the holders of
         Senior Debt (in order of priority, and when of equal priority, pro rata
         to such holders of equal priority on the basis of the amounts of Senior
         Debt held by such holders) or their representative or representatives,
         or to the trustee or trustees under any indenture pursuant to which any
         of such Senior Debt may have been issued, as their interests may
         appear, for application to the payment of Senior Debt remaining unpaid
         until all such Senior Debt has been indefeasibly paid in full, or
         provisions shall have been made for such payment, in cash, cash
         equivalents or otherwise in a manner satisfactory to the holders of
         Senior Debt, after giving effect to any concurrent payment,
         distribution or provision therefor to or for the holders of Senior
         Debt.

                  (b) For purposes of this Article X, the words "cash, property
         or securities" shall be deemed to include securities of the Company or
         any other corporation provided for by a plan of reorganization or
         readjustment which are subordinated, to at least the same extent as the
         Securities, to the payment of all Senior Debt then outstanding or to
         the payment of all securities issued in exchange therefor to the
         holders of Senior Debt at the time outstanding. The consolidation of
         the Company with, or the merger of the Company with or into, another
         corporation or the liquidation or dissolution of the Company following
         the conveyance or transfer of its property as an entirety, or
         substantially as an entirety, to another corporation upon the terms and
         conditions provided in Article V shall not be deemed a dissolution,
         winding-up, liquidation or reorganization for the purposes of this
         Section if such other corporation shall, as part of such consolidation,
         merger, conveyance or transfer, comply with the conditions stated in
         Article V.

                  (c) The provisions of Section 10.2(a) and (b) shall not
         prohibit, restrict or otherwise limit the Company from entering into,
         sponsoring or conducting any Qualified Sales and Financing Transaction.

SECTION 10.3 DEFAULT OF SENIOR DEBT.

                  (a) In the event and during the continuation of any default in
         the payment of principal of (or premium, if any) or interest on any
         Senior Debt, or any amount owing from time to time under or in respect
         of Senior Debt or in the event that any nonpayment event of default
         with respect to any Senior Debt shall have occurred and be continuing
         and shall have resulted in such Senior Debt becoming or being declared
         due and payable prior to the date on which it would otherwise have
         become due and payable, or (b) in the event that any other nonpayment
         event of default with respect to any Senior Debt shall have occurred
         and be continuing permitting the holders of such Senior Debt (or a
         trustee on behalf of the holders thereof) to declare such Senior Debt
         due and payable prior to the date on which it would otherwise have
         become due and payable, then the Company shall make no payment, direct
         or indirect (including any payment which may be payable by reason of

INDENTURE - Page 41
<PAGE>

         the payment of any other Indebtedness of the Company being subordinated
         to the payment of the Securities) on account of any Securities unless
         and until (i) such event of default shall have been cured or waived or
         shall have ceased to exist or such acceleration shall have been
         rescinded or annulled, or (ii) in case of any nonpayment event of
         default specified in (b), during the period (a "PAYMENT BLOCKAGE
         PERIOD") commencing on the date the Company and the Trustee receive
         written notice (a "PAYMENT NOTICE") of such event of default (which
         notice shall be binding on the Trustee and the Holders as to the
         occurrence of such an event of default) from a holder of the Senior
         Debt to which such default relates and ending on the earliest of (A)
         179 days after such date, (B) the date, if any, on which such Senior
         Debt to which such default relates is discharged or such default is
         waived by the holders of such Senior Debt or otherwise cured and (C)
         the date on which the Trustee receives written notice from the holder
         of such Senior Debt to which such default relates terminating the
         Payment Blockage Period. Notwithstanding the foregoing, during any
         Payment Blockage Period, the Company shall make payments for rescinded
         subscriptions under Section 2.2(b) (including subscriptions that occur
         at a time when a post-effective amendment to the Registration Statement
         was required but not yet effective). The holders of the Senior Debt may
         deliver up to three (3) Payment Notices to the Company and the Trustee
         in any 360 day period, provided that in no event shall the cumulative
         Payment Blockage Periods exceed 179 days in a 360 day period.

                  (b) Subject to the provisions of Sections 6.9 and 10.7,
         neither the Trustee nor the Holders may take any action to assert,
         demand, sue for, collect, enforce or realize upon the Securities or the
         related Obligations or any part thereof in any period during which the
         Company is not permitted to make payment on account of the Securities
         pursuant to Section 10.3, unless and only to the extent that the
         commencement of a legal action may be required to toll the running of
         any applicable statute of limitations.

SECTION 10.4 WHEN DISTRIBUTION MUST BE PAID OVER.

                  (a) If the Trustee or any Holder receives any payment with
         respect to the Securities, whether in cash, property or securities,
         such payment shall be held by the Trustee or such Holder, in trust for
         the benefit of, and shall be paid forthwith over and delivered to, the
         holders of Senior Debt (in order of their priority, and when of equal
         priority, pro rata to such holders of equal priority on the basis of
         the amounts of Senior Debt held by such holders) for application to the
         payment of all Obligations with respect to Senior Debt remaining unpaid
         to the extent necessary to pay such Obligations in full, in cash, cash
         equivalents or otherwise in a manner satisfactory to the holders of
         Senior Debt, in accordance with the terms of such Senior Debt, after
         giving effect to any concurrent payment or distribution to or for the
         holders of Senior Debt.

                  (b) With respect to the holders of Senior Debt, the Trustee
         undertakes to perform only such obligations on the part of the Trustee
         as are specifically set forth in this Article X, and no implied
         covenants or obligations with respect to the holders of Senior Debt

INDENTURE - Page 42
<PAGE>

         shall be read into this Indenture against the Trustee. The Trustee
         shall not be deemed to owe any fiduciary duty to the holders of Senior
         Debt, and shall not be liable to any such holders if the Trustee shall
         pay over or distribute to or on behalf of Holders or the Company or any
         other Person money or assets to which any holders of Senior Debt shall
         be entitled by virtue of this Article X, except if such payment is made
         as a result of the willful misconduct or negligence of the Trustee.

SECTION 10.5 NOTICE BY COMPANY.

         The Company shall promptly notify the Trustee and the Paying Agent in
writing of any facts known to the Company that would cause a payment of any
Obligations with respect to the Company to violate this Article, but failure to
give such notice shall not affect the subordination of the Securities to the
Senior Debt provided in this Article.

SECTION 10.6 SUBROGATION.

         After all Senior Debt is paid in full, in cash, cash equivalents or
otherwise in a manner satisfactory to the holders of such Senior Debt, and until
the Securities are paid in full, Holders shall be subrogated (equally and
ratably with all other Indebtedness pari passu with the Securities) to the
rights of holders of Senior Debt to receive distributions applicable to Senior
Debt to the extent that distributions otherwise payable to the Holders have been
applied to the payment of Senior Debt.

SECTION 10.7 RELATIVE RIGHTS.

                  (a) This Article defines the relative rights of Holders and
         holders of Senior Debt. Nothing in this Indenture shall:

                           (i) impair, as between the Company and Holders, the
                  obligations of the Company, which are absolute and
                  unconditional, to pay principal of and interest on the
                  Securities in accordance with their terms;

                           (ii) affect the relative rights of Holders and
                  creditors of the Company other than their rights in relation
                  to holders of Senior Debt; or

                           (iii) prevent the Trustee or any Holder from
                  exercising its available remedies upon a Default or Event of
                  Default, subject to the rights of holders and owners of Senior
                  Debt to receive distributions and payments otherwise payable
                  to Holders.

                  (b) If the Company fails because of this Article to pay
         principal of or interest on a Security on the due date, the failure is
         still a Default or Event of Default.

SECTION 10.8 SUBORDINATION MAY NOT BE IMPAIRED BY THE COMPANY OR HOLDERS OF
SENIOR DEBT.

                  (a) No right of any present or future holder of Senior Debt to
         enforce the subordination of the Indebtedness evidenced by the
         Securities and the Obligations related thereto shall be prejudiced or
         impaired by any act or failure to act by any such holder or by the
         Company, the Trustee or any Agent or by the failure of the Company to
         comply with this Indenture, regardless of any knowledge thereof which
         any such holder may have or otherwise be charged with.

INDENTURE - Page 43
<PAGE>

                  (b) Without limiting the effect of the preceding paragraph,
         any holder of Senior Debt may at any time and from time to time without
         the consent of or notice to any other holder or to the Trustee, without
         impairing or releasing any of the rights of any holder of Senior Debt
         under this Indenture, upon or without any terms or conditions and in
         whole or in part:

                           (i) change the manner, place or term of payment, or
                  change or extend the time of payment of, renew or alter any
                  Senior Debt or any other liability of the Company to such
                  holder, any security therefor, or any liability incurred
                  directly or indirectly in respect thereof, and the provisions
                  of this Article X shall apply to the Senior Debt as so
                  changed, extended, renewed or altered;

                           (ii) notwithstanding the provisions of Section 5.1
                  hereof, sell, exchange, release, surrender, realize upon or
                  otherwise deal with in any manner and in any order any
                  property by whomsoever at any time pledged or mortgaged to
                  secure, or howsoever securing, any Senior Debt or any other
                  liability of the Company to such holder or any other
                  liabilities incurred directly or indirectly in respect thereof
                  or hereof or any offset thereagainst;

                           (iii) exercise or refrain from exercising any rights
                  or remedies against the Company or others or otherwise act or
                  refrain from acting or, for any reason, fail to file, record
                  or otherwise perfect any security interest in or lien on any
                  property of the Company or any other Person; and

                           (iv) settle or compromise any Senior Debt or any
                  other liability of the Company to such holder, or any security
                  therefor, or any liability incurred directly or indirectly in
                  respect thereof.

                  (c) All rights and interests under this Indenture of any
         holder of Senior Debt and all agreements and obligations of the
         Trustee, the Holders, and the Company under Article VI and under this
         Article X shall remain in full force and effect irrespective of (i) any
         lack of validity or enforceability of any agreement or instrument
         relating to any Senior Debt or (ii) any other circumstance that might
         otherwise constitute a defense available to, or a discharge of, the
         Trustee, any Holder, or the Company.

                  (d) Any holder of Senior Debt is hereby authorized to demand
         specific performance of the provisions of this Article X, whether or
         not the Company shall have complied with any of the provisions of this
         Article X applicable to it, at any time when the Trustee or any Holder
         shall have failed to comply with any of these provisions. The Trustee
         and the Holders irrevocably waive any defense based on the adequacy of
         a remedy at law that might be asserted as a bar to such remedy of
         specific performance.

INDENTURE - Page 44
<PAGE>

SECTION 10.9 DISTRIBUTION OR NOTICE TO REPRESENTATIVE.

                  (a) Whenever a distribution is to be made or a notice given to
         holders of Senior Debt, the distribution may be made and the notice
         given to their representative.

                  (b) Upon any payment or distribution of assets of the Company
         referred to in this Article X, the Trustee and the Holders shall be
         entitled to rely upon any order or decree made by any court of
         competent jurisdiction in which bankruptcy, dissolution, winding-up,
         liquidation or reorganization proceedings are pending or upon any
         certificate of any representative of any holder of Senior Debt or of
         the liquidating trustee or agent or other Person making any
         distribution, delivered to the Trustee or to the Holders, for the
         purpose of ascertaining the Persons entitled to participate in such
         distribution, the holders of the Senior Debt and other Indebtedness of
         the Company, the amount thereof or payable thereon, the amount or
         amounts paid or distributed thereon and all other facts pertinent
         thereto or to this Article X.

SECTION 10.10 RIGHTS OF TRUSTEE AND PAYING AGENT.

                  (a) Notwithstanding the provisions of this Article X or any
         other provision of this Indenture, the Trustee shall not be charged
         with knowledge of the existence of any facts which would prohibit the
         making of any payment or distribution by the Trustee, or the taking of
         any action by the Trustee, and the Trustee or Paying Agent may continue
         to make payments on the Securities unless it shall have received at its
         Corporate Trust Office at least five Business Days prior to the date of
         such payment written notice of facts that would cause the payment of
         any Obligations with respect to the Securities to violate this Article,
         which notice, unless specified by a holder of Senior Debt as such,
         shall not be deemed to be a Payment Notice. The Trustee may
         conclusively rely on such notice. Only the Company or a holder of
         Senior Debt may give the notice. Nothing in this Article X shall apply
         to amounts due to, or impair the claims of, or payments to, the Trustee
         under or pursuant to Section 7.7 hereof.

                  (b) The Trustee in its individual or any other capacity may
         hold Senior Debt with the same rights it would have if it were not
         Trustee. Any Agent may do the same with like rights.

SECTION 10.11 AUTHORIZATION TO EFFECT SUBORDINATION.

         Each Holder of a Security by his acceptance thereof authorizes and
directs the Trustee on his behalf to take such action as may be necessary or
appropriate to effectuate, as between the holders of Senior Debt and the
Holders, the subordination as provided in this Article X, and appoints the
Trustee his attorney-in-fact for any and all such purposes.

SECTION 10.12 ARTICLE APPLICABLE TO PAYING AGENT.

         In case at any time any Paying Agent (other than the Trustee or the
Company) shall have been appointed by the Company and be then acting hereunder,
the term "Trustee" as used in this Article X shall in such case (unless the
context otherwise requires) be construed as extending to and including such
Paying Agent within its meaning as fully for all intents and purposes as if such
Paying Agent were named in this Article X in addition to or in place of the
Trustee.

INDENTURE - Page 45
<PAGE>

SECTION 10.13 MISCELLANEOUS.

                  (a) The agreements contained in this Article X shall continue
         to be effective or be reinstated, as the case may be, if at any time
         any payment of any of the Senior Debt is rescinded or must otherwise be
         returned by any holder of Senior Debt upon the insolvency, bankruptcy
         or reorganization of the Company or otherwise, all as though such
         payment had not been made.

                  (b) The Trustee shall notify all holders of Senior Debt (of
         whose identity the Trustee has received reasonable advance written
         notice) of the existence of any Default or Event of Default under
         Section 6.1 promptly after a Responsible Officer of the Trustee
         actually becomes aware thereof; provided, however, that at least five
         Business Days prior to the notification of any holder of Senior Debt
         under this Section 10.13, the Trustee shall provide the Company with
         notice of its intent to provide such notification, provided further,
         however, that no defect in the form or delivery of the Trustee's notice
         to the Company shall preclude the timely notice by the Trustee to the
         holders of Senior Debt.

                                   ARTICLE XI

                                  MISCELLANEOUS

SECTION 11.1 TRUST INDENTURE ACT CONTROLS.

         If any provision of this Indenture limits, qualifies or conflicts with
the duties imposed by TIA ss. 318(c), the imposed duties shall control.

SECTION 11.2 NOTICES.

(a)      Any notice, instruction, direction, request or other communication by
         the Company, the Trustee or any other holder of Senior Debt to the
         others is duly given if in writing and delivered in person or mailed by
         first-class mail (registered or certified, return receipt requested),
         telex, telecopier or overnight air courier guaranteeing next day
         delivery, to the other's address:

                  If to the Company:

                  Consumer Portfolio Services, Inc.
                  16355 Laguna Canyon Road
                  Irvine, CA 92618

                  Attention:  Chief Financial Officer
                  Telecopier: 949-753-6897

INDENTURE - Page 46
<PAGE>

                  With a copy to:

                  Andrews Kurth LLP
                  1717 Main Street, Suite 3700
                  Dallas, TX 75201..

                  Attention:  Mark W. Harris
                  Telecopier:  214-659-4773

                  If to the Trustee:

                  Wells Fargo Bank, National Association
                  Sixth Street and Marquette Avenue
                  MAC N9303-120
                  Minneapolis, Minnesota, 55479

                  Attention:  Consumer Portfolio Services, Inc, Administrator
                  Telecopier:  (612) 667-9825

         If to a holder of Senior Debt, such address as such holder of Senior
Debt shall have provided in writing to the Company and the Trustee.

                  (b) The Company, the Trustee or a holder of Senior Debt by
         notice to the Company and the Trustee may designate additional or
         different addresses for subsequent notices or communications.

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

                  (d) Any notice or communication to a Holder shall be mailed by
         first-class mail to his address shown on the register kept by the
         Registrar. Failure to mail a notice or communication to a Holder or any
         defect in it shall not affect its sufficiency with respect to other
         Holders.

                  (e) If a notice or communication is mailed in the manner
         provided above within the time prescribed, it is duly given, whether or
         not the addressee receives it.

                  (f) If the Company mails a notice or communication to Holders,
         it shall mail a copy to the Trustee and each Agent at the same time.

SECTION 11.3 COMMUNICATION BY HOLDERS WITH OTHER HOLDERS.

         Holders may communicate pursuant to TIA ss. 312(b) with other Holders
with respect to their rights under this Indenture or the Securities. The Trustee
shall be subject to ss. 312(b). The Company, the Trustee, the Registrar and
anyone else shall have the protection of TIA ss. 312(c).

INDENTURE - Page 47
<PAGE>

SECTION 11.4 CERTIFICATE AND OPINION AS TO CONDITIONS PRECEDENT.

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

                  (a) an Officers' Certificate in form and substance reasonably
         satisfactory to the Trustee (which shall include the statements set
         forth in Section 11.5) stating that, in the opinion of the signers, all
         conditions precedent and covenants, if any, provided for in this
         Indenture relating to the proposed action have been complied with; and

                  (b) an Opinion of Counsel in form and substance reasonably
         satisfactory to the Trustee (which shall include the statements set
         forth in Section 11.5) stating that, in the opinion of such counsel,
         all such conditions precedent and covenants have been complied with.

SECTION 11.5 STATEMENTS REQUIRED IN CERTIFICATE OR OPINION.

         Each certificate or opinion with respect to compliance with a condition
or covenant provided for in this Indenture (other than a certificate provided
pursuant to TIA ss. 314(a)(4)) shall include:

                  (a) a statement that the Person making such certificate or
         opinion has read such covenant or condition;

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

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

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

SECTION 11.6 RULES BY TRUSTEE AND AGENTS.

         The Trustee may make reasonable rules for action by or at a meeting of
Holders. The Registrar or Paying Agent may make reasonable rules and set
reasonable requirements for its functions.

SECTION 11.7 LEGAL HOLIDAYS.

         A "Legal Holiday" is a Saturday, a Sunday or a day on which banking
institutions in the State of Minnesota or at a place of payment are authorized
or obligated by law, regulation or executive order to remain closed. If a
payment date is a Legal Holiday at a place of payment, payment may be made at
that place on the next succeeding day that is not a Legal Holiday, and no
interest shall accrue for the intervening period.

INDENTURE - Page 48
<PAGE>

SECTION 11.8 NO RECOURSE AGAINST OTHERS.

         No director, officer, employee, agent, manager or stockholder of the
Company as such, shall have any liability for any Obligations of the Company
under the Securities or this Indenture or for any claim based on, in respect of
or by reason of such Obligations or their creation. Each Holder by accepting a
Security waives and releases all such liability.

SECTION 11.9 DUPLICATE ORIGINALS.

         The parties may sign any number of copies of this Indenture. One signed
copy is enough to prove this Indenture.

SECTION 11.10 GOVERNING LAW.

         THE INTERNAL LAW OF THE STATE OF NEW YORK SHALL GOVERN THIS INDENTURE
AND THE SECURITIES, WITHOUT REGARD TO THE CONFLICT OF LAWS PROVISIONS THEREOF.

SECTION 11.11 NO ADVERSE INTERPRETATION OF OTHER AGREEMENTS.

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

SECTION 11.12 SUCCESSORS.

         All agreements of the Company in this Indenture and the Securities
shall bind its successors. All agreements of the Trustee in this Indenture shall
bind its successors.

SECTION 11.13 SEVERABILITY.

         In case any provision in this Indenture or in the Securities 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 11.14 COUNTERPART ORIGINALS.

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

SECTION 11.15 TABLE OF CONTENTS, HEADINGS, ETC.

         The Table of Contents, Cross-Reference Table and Headings of the
Articles and Sections of this Indenture have been inserted for convenience of
reference only, are not to be considered a part hereof and shall in no way
modify or restrict any of the terms or provisions thereof.

INDENTURE - Page 49
<PAGE>

                            [REMAINDER OF PAGE BLANK]

INDENTURE - Page 50
<PAGE>

                                   SIGNATURES:

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

                                         CONSUMER PORTFOLIO SERVICES, INC.

                                         By:
                                             -----------------------------------
                                         Name:
                                               ---------------------------------
                                         Title:
                                                --------------------------------

                                         WELLS FARGO BANK, NATIONAL ASSOCIATION,
                                         a national banking association,
                                         as Trustee

                                         By:
                                             -----------------------------------
                                         Name:
                                               ---------------------------------
                                         Title:
                                                --------------------------------

INDENTURE - Page 51

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