Document:

Amendment 1 to the Purchase and Contribution Agreement

 EXHIBIT 10.4 
  
 AMENDMENT 1 TO PURCHASE AND CONTRIBUTION AGREEMENT 
  
 Amendment 1, dated as of September 29, 2004 (the “Amendment”) to the Purchase and Contribution Agreement, dated as
of April 24, 2003 (the “Agreement”) by and among SPX CORPORATION, a Delaware corporation (“SPX”), as seller and as Collection Agent, TRANSPORTATION & INDUSTRIAL SOLUTIONS (formerly Service Solutions, and referring
solely to the Tools and Equipment divisions and Advanced Test Products), a division of SPX (“TIS”), WAUKESHA ELECTRIC SYSTEMS, INC. (referring solely to the Waukesha and Goldsboro operations), a Wisconsin corporation
(“Waukesha”), MARLEY COOLING TECHNOLOGIES, INC., a Delaware corporation (“Marley”), and EDWARDS SYSTEMS TECHNOLOGY, INC., a Connecticut corporation (“EST,” and collectively with TIS, Waukesha,
Marley and EST, the “Originators”) and SPX RECEIVABLES, LLC, a Delaware limited liability company (the “Purchaser”), agree as follows: 
  
 PRELIMINARY STATEMENTS 
  
 WHEREAS, certain terms which are capitalized and used throughout this Amendment (in addition to those defined above and in these Preliminary Statements)
are defined in Article I of the Agreement, as modified by this Amendment. 
  
 WHEREAS, SPX has originated, and intends to originate Receivables from time to time through TIS. 
  
 WHEREAS, the Originators (other than TIS) intend to sell Receivables to SPX and SPX, in turn, will sell or contribute Receivables to the Purchaser from
time to time in accordance with the terms and conditions specified in the Agreement. 
  
 WHEREAS, the Purchaser desires to sell from time to time certain receivables to GE Capital Commercial Services, Inc., a North Carolina corporation, and its successors and assigns or any other subsidiary or affiliate
of General Electric Company (“GE”) under a factoring arrangement more particularly described herein. 
  
 WHEREAS, in accordance with the Receivables Purchase Agreement, the Agent will consent to the sale of certain of the Receivables by the Purchaser and upon
acknowledgment by the Agent of the sale of such receivables (as more fully defined herein, the “Factored Receivables”) the Agent will release its lien and security interest in such Factored Receivables from time to time. 
  
 WHEREAS, in connection with any contemplated sale to GE, the Purchaser will
be required to assign the representations and warranties made by SPX and the Originators relating to the Factored Receivables to GE. 
  
 WHEREAS, SPX and each Originator (other than TIS) agree to provide any representations and warranties desired in respect of the Factored Receivables and
related assets directly to GE in accordance with the terms herein. 
  

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 Amendment 1 to SPX Purchase and Contribution Agreement 
  

 WHEREAS, the Agent, SPX, the Originators and the Purchaser have agreed subject to the terms and
conditions of this Amendment, to amend the Agreement as hereinafter set forth. 
  
 NOW, THEREFORE, the parties agree as follows: 
  

	1.	Amendment of the Agreement. 

  
 (a) The definition of “Dilution” in Section 1.01 is hereby deleted in its entirety and replaced with the following: 
  
 “Dilution” means, with respect to any Receivable other than
any Defaulted Receivable,(i) the aggregate net amount of any reductions or adjustments in the Outstanding Balance of such Receivable as a result of any defective, rejected, returned, repossessed or foreclosed goods or services or any rebate, sales
allowance, cash discount or other adjustment or setoff and also includes, but is not limited to any reductions or adjustments as a result of, any charges or fees paid to any collecting bank or financial institution in connection with the collection
of Receivables paid using a credit card and (ii) the aggregate amount of any misapplied payments with respect to a Receivable, to the extent that such amount has not been previously reimbursed, until such time as such amounts are paid to the Agent.

  
 (b) The definition of “Related Security” in Section
1.01 is hereby deleted in its entirety and replaced with the following: 
  
 “Related Security” means with respect to any Receivable: 
  
 (i) all of the Originator’s or SPX’s, as the case may be, interest in any goods (including returned goods) relating to any sale giving rise to
such Receivable; 
  
 (ii) all security interests or liens and
property subject thereto from time to time purporting to secure payment of such Receivable, whether pursuant to the Contract related to such Receivable or otherwise, together with all financing statements authorized by an Obligor describing any
collateral securing such Receivable; 
  
 (iii) all guaranties,
insurance and other agreements or arrangements of whatever character from time to time supporting or securing payment of such Receivable whether pursuant to the Contract related to such Receivable or otherwise; 
  
 (iv) all instruments, chattel paper and general intangibles evidencing or
related to such Receivable; and 
  
 (v) the Contract and all
other books, records and other information (including, without limitation, computer programs, tapes, discs, punch cards, data processing 

  

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 Amendment 1 to SPX Purchase and Contribution Agreement 
  

 
software and related property and rights) to the extent relating to such Receivable and the related Obligor. 
  
 (c) The following definitions shall be added to Section 1.01: 
  
 “Agent” Calyon New York Branch, as successor in interest to
Credit Lyonnais, a French banking corporation acting through its New York Branch, in its capacity as agent under the Receivables Purchase Agreement. 
  
 “Factored Receivable” means the indebtedness of any Obligor resulting from the provision or sale of goods or services by an Originator
under a Contract, and includes the right to payment of any interest or finance charges and other obligations of such Obligor with respect thereto that has been acquired by the Purchaser, either by purchase or by capital contribution pursuant to this
Agreement, and that: 
  
 (a) is sold to GE pursuant to the GE
Purchase Agreement; and 
  
 (b) is identified on a Release
Request that has been acknowledged by the Agent, in writing. 
  
 “Factored Receivable Collections” means, with respect to any Factored Receivable, (a) all funds which are received by the Agent, the Purchaser, the Collection Agent, any Originator or GE in payment of any amounts owed in
respect of such Factored Receivable (including, without limitation, purchase price, finance charges, interest and all other charges), or applied to amounts owed in respect of such Factored Receivable (including, without limitation, insurance
payments and net proceeds of the sale or other disposition of repossessed goods or other collateral or property of the related Obligor or any other party directly or indirectly liable for the payment of such Factored Receivable and available to be
applied thereon), and (b) all other cash proceeds of such Factored Receivable. 
  
 “Factored Receivable Related Security” means with respect to any Factored Receivable: 
  
 (a) all of the Purchaser’s interest in any goods (including returned goods) relating to any sale giving rise to such Factored Receivable; 

 
 (b) all security interests or liens and property subject thereto from
time to time purporting to secure payment of such Factored Receivable, whether pursuant to the Contract related to such Factored Receivable or otherwise, together with all financing statements authorized by an Obligor describing any collateral
securing such Factored Receivable; 
  
 (c) all guaranties,
insurance and other agreements or arrangements of whatever character from time to time supporting or securing payment of such Factored Receivable whether pursuant to the Contract related to such Factored Receivable or otherwise; 
  

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 Amendment 1 to SPX Purchase and Contribution Agreement 
  

 (d) all instruments, chattel paper, and general intangibles evidencing or related to such Factored
Receivable; and 
  
 (e) the Contract and all other books, records
and other information (including, without limitation, computer programs, tapes, discs, punch cards, data processing software and related property and rights) to the extent relating to such Factored Receivable and the related Obligor. 
  
 “GE” means GE Capital Commercial Services, Inc., a North
Carolina corporation, and its successors and assigns, or any other subsidiary or affiliate of General Electric Company. 
  
 “GE Purchase Agreement” means and shall collectively refer to (a) the Receivables Purchase Agreement, dated December 30, 2003, as amended
pursuant to Amendment No. 1, dated April 1, 2004, Amendment No. 2, dated June 30, 2004 and Amendment No. 3 dated the date of Amendment No. 1 to the Receivables Purchase Agreement, and the related Servicing Agreement, dated December 30, 2003, each of
which is among SPX, the Originators, GE and the other parties thereto, and (b) any Receivables Purchase Agreements and related Servicing Agreements entered into from time to time by the Purchaser, GE and others providing for the purchase and sale of
Factored Receivables of the Purchaser, in each case, in the form delivered to the Agent pursuant to the terms of the Receivables Purchase Agreement and together with all related documents, as the same may be amended, supplemented, restated or
otherwise modified from time to time with the consent of the Agent, which consent shall not be unreasonably withheld. 
  
 “Intercreditor Agreement” means the Intercreditor Agreement, dated as of September 29, 2004, among the Purchaser, GE, the Agent, on
behalf of the Investors and the Banks (each such term shall have the meaning assigned thereto in the Receivables Purchase Agreement) and the other parties thereto, as it may be amended, supplemented, restated or otherwise amended from time to time.

  
 “Release Request” means (i) a request from
the Purchaser to the Agent for the release of its lien and security interest in identified Receivables, including the pro forma recalculation of the Receivables Interest (as such term is defined in the Receivables Purchase Agreement), substantially
in the form of Annex J to the Receivables Purchase Agreement or (ii) the Release of Lien by Secured Party and Authorization to File UCC Amendments, executed by Calyon New York Branch in its capacity as Agent as of June 30, 2004. 

 
 “Transaction Document” means any of the Agreement, the
Fee Agreement, the Receivables Purchase Agreement, the GE Purchase Agreement and all other agreements executed by SPX or its Subsidiaries and delivered to the Agent related hereto or thereto identified on the Schedule of Closing Documents and such
other 

  

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 Amendment 1 to SPX Purchase and Contribution Agreement 
  

 
documents that are designated by agreement of the parties as “Transaction Documents.” 
  
 (d) Section 3.04(a) is amended and restated as follows: 
  
 Unless otherwise agreed, the Collection Agent shall, on each Settlement Date, deposit into an account of the Purchaser or
the Agent all Collections of Receivables (other than the Factored Receivables) then held by the Collection Agent. Unless otherwise agreed, the Collection Agent shall, on each Settlement Date, deposit into an account of the Purchaser or GE all
Factored Receivable Collections then held by the Collection Agent. 
  
 (e) Section 3.04(b) is amended and restated as follows: 
  
 In the event that SPX believes that amounts that are not Collections of Receivables have been deposited into an account of the Purchaser, the Agent or GE, SPX shall so advise the Purchaser and, on the Business Day following such
identification, the Purchaser shall remit, or shall cause to be remitted, to SPX all amounts so deposited which are identified, to the Purchaser’s satisfaction, to be amounts that are not Collections of Receivables. 
  
 (f) Section 5.01(f) is amended and restated as follows: 
  
 The balance sheet of SPX and its Subsidiaries as of December 31, 2003, and
the related statements of income and retained earnings of SPX and its Subsidiaries for such fiscal year, copies of which have been furnished to the Purchaser, fairly present in all material respects the financial condition of SPX and its
Subsidiaries as at such date and the results of the operations of SPX and its Subsidiaries for the period ended on such date, all in accordance with generally accepted accounting principles consistently applied, and since the end of its most recent
fiscal year December 31, 2003 there has been no material adverse change in the business, operations, property or financial or other condition of SPX and its Subsidiaries that could reasonably be expected to affect the value or collectibility of the
Receivables. 
  
 (g) Section 5.01(i) is amended to add the
following to the last sentence thereof: 
  
 and those filed by GE
relating to any Factored Receivables, Factored Receivable Collections and Factored Receivable Related Security. 
  

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 Amendment 1 to SPX Purchase and Contribution Agreement 
  

 (h) Section 5.01(m) is amended to add the following to the end thereof: 
  
 subject to any rights or interests arising pursuant to the provisions of the
Intercreditor Agreement. 
  
 (i) Section 6.01(d) is amended and
restated as follows: 
  
 Sales, Liens, Etc. SPX will not
sell, assign (by operation of law or otherwise) or otherwise dispose of, or create or suffer to exist any Adverse Claim upon or with respect to, any Receivable, Related Security or Collections, or upon or with respect to any account to which any
Collections of any Receivable are sent, or assign any right to receive income in respect thereof, other than as specified herein and the other Transaction Documents or except as provided for under the GE Purchase Agreement. 
  
 (j) Section 6.01(g) is amended to add the following to the end thereof:

  
 or a change relating to Factored Receivables. 
  
 (k) Section 6.01(i) is amended and restated as follows: 
  
 Deposits to Lock-Box Accounts. SPX will deposit, or cause to be
deposited, all Collections of Receivables other than Factored Receivable Collections into Lock-Box Accounts. SPX will not deposit or otherwise credit, or cause or permit to be so deposited or credited, to any Lock-Box Account cash or cash proceeds
other than Collections of Receivables. 
  
 (l) Section 6.01(l) is
amended and restated as follows: 
  
 (l) Further Assurances.

  
 (i) SPX agrees from time to time, at its expense, promptly to
execute and deliver all further instruments and documents, and to take all further actions, that may be necessary or desirable, or that the Purchaser or the Agent may reasonably request, to perfect, protect or more fully evidence the sale and
contribution of Receivables under this Agreement, or to enable the Purchaser or the Agent to exercise and enforce their respective rights and remedies under this Agreement. Without limiting the foregoing, SPX will, upon the request of the Purchaser
or the Agent, 
  
 (x) execute and file such financing or
continuation statements, or amendments thereto, and such other instruments and documents, that may be necessary or desirable to perfect, protect or evidence such Receivables; and 
  
 (y) following the occurrence of an Incipient Event of Termination or an Event of Termination, deliver to the Purchaser and
the Agent copies of 
  

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 Amendment 1 to SPX Purchase and Contribution Agreement 
  

 all Contracts relating to the Receivables and all records relating to such Contracts and the
Receivables, whether in hard copy or in magnetic tape or diskette format (which if in magnetic tape or diskette format shall be compatible with the Purchaser’s or the Agent’s computer equipment). 
  
 (ii) SPX authorizes the Purchaser or the Agent to file financing or
continuation statements, and amendments thereto and assignments thereof, relating to the Receivables, the Related Security and the Collections with respect thereto without the signature of SPX where permitted by law. 
  
 (iii) SPX authorizes the Purchaser to take any and all steps in SPX’s
name and on behalf of SPX that are necessary or desirable, in the determination of the Purchaser, to collect amounts due under the Receivables, including, without limitation, endorsing SPX’s name on checks and other instruments representing
Collections of Receivables and following the occurrence of an Incipient Event of Termination or an Event of Termination, enforcing the Receivables and the Related Security. 
  
 (iv) SPX agrees from time to time, at the expense of SPX, promptly to execute and deliver all further instruments and
documents, and to take all further actions, that may be reasonably necessary or desirable, or that the Purchaser or GE may reasonably request, to perfect, protect or more fully evidence the sale of a Factored Receivable, together with the Factor
Receivable Related Security, purchased by GE, or to enable GE to exercise and enforce its rights and remedies under the GE Purchase Agreement or applicable law with respect to the Factored Receivables, the Factored Receivable Related Security and
the Factored Receivable Collections. Without limiting the foregoing, SPX will, upon the request of the Purchaser or GE, 
  
 (x) execute and file such financing or termination statements or amendments thereto, and such other instruments and documents, that may be reasonably
necessary or desirable, or that the Purchaser or GE may reasonably request, to transfer such Factored Receivables and Factored Receivable Related Security to GE and to release any Factored Receivables, Factored Receivable Related Security and
Factored Receivable Collections from the security interest granted therein under this Agreement or any Transaction Document (other than the GE Purchase Agreement), in each case, only to the extent such documents are prepared by the Purchaser or GE
and acceptable to the Agent, in its reasonable judgment; and 
  
 (y) forward any Factored Receivable Collections to GE in accordance with, and take such other actions as required by, the terms and conditions of the GE Purchase Agreement. 
  

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 Amendment 1 to SPX Purchase and Contribution Agreement 
  

 (m) The following is added as clause (n) to Section 6.01: 
  
 Upon any sale of Factored Receivables to GE in accordance with the terms of
the GE Purchase Agreement, SPX, the Purchaser and the Originators agree to treat GE as the owner of such Factored Receivables, the related Factored Receivable Collections and Factored Receivable Related Security. Each of SPX, the Purchaser and the
Originators acknowledges that GE will be entitled to rely directly on all of the representations, warranties and covenants provided by SPX, the Purchaser and the Originators pursuant to this Agreement and that GE will have the direct right to
enforce any remedies relating to the breach of any such representations, warranties and covenants. 
  
 (n) The provisions of Article VII of the Agreement do not apply to Factored Receivables. 
  
 (o) Section 8.01(c) is amended and restated as follows: 
  
 Any representation or warranty made or deemed made by SPX or any Originator (or any of its officers) under or in connection
with this Agreement or any other Transaction Document (other than the GE Purchase Agreement) or any information or report, taken as a whole, delivered by SPX or any Originator pursuant to this Agreement or any other Transaction Document (other than
the GE Purchase Agreement) shall prove to have been incorrect or untrue in any material respect when made or deemed made or delivered; 
  
 (p) Section 8.01(d) is amended and restated as follows: 
  
 SPX shall fail to perform or observe, in any material respect, any other term, covenant or agreement contained in this Agreement or in any other
Transaction Document (other than the GE Purchase Agreement) on its part to be performed or observed and any such failure shall remain unremedied for ten days after written notice thereof shall have been given to SPX by the Purchaser; or 

 
 (q) Section 8.01 (i) is amended and restated as follows: 
  
 There shall have occurred any change in the business, financial condition or
operations of SPX since December 31, 2003 that materially adversely affects the collectibility of the Receivables or the ability of SPX to collect the Receivables otherwise perform its obligations under this Agreement; 
  

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 Amendment 1 to SPX Purchase and Contribution Agreement 
  

 (r) Section 10.03(a) is amended and restated as follows: 
  
 This Agreement shall be binding upon and inure to the benefit of the
Originators, SPX, the Purchaser and their respective successors and assigns. In connection with any sale or assignment by the Purchaser of all or a portion of the Receivables under the Receivables Purchase Agreement, the buyer or assignee, as the
case may be, shall, to the extent of its purchase or assignment, have all rights of the Purchaser under this Agreement (as if such buyer or assignee, as the case may be, were the Purchaser hereunder). In connection with any sale or assignment by the
Purchaser of any Factored Receivable under the GE Purchase Agreement, the buyer or assignee, as the case may be, shall, to the extent of its purchase or assignment, have all rights of the Purchaser under this Agreement (as if such buyer or assignee,
as the case may be, were the Purchaser hereunder). The rights of any buyer, assignee or transferee of the Purchaser in respect of the Receivables other than the Factored Receivables (including the Issuer, the Agent or the Bank’s under and as
defined in the Receivables Purchase Agreement) under this Agreement and any third-party beneficiaries contemplated by Section 10.10 shall be subject to the limits, conditions and restrictions on the analogous rights under the Receivables
Purchase Agreement (including, without limitation, caps on expenses and payment or indemnification for Taxes and Other Taxes, as such terms are used and defined in the Receivables Purchase Agreement). The rights of any buyer, assignee or transferee
of the Purchaser in respect of the Factored Receivables (including GE under and as defined in the GE Purchase Agreement) under this Agreement and any third-party beneficiaries contemplated by Section 10.10 shall be subject to the limits,
conditions and restrictions on the analogous rights under the GE Purchase Agreement. 
  
 (s) Section 10.10 is amended and restated as follows: 
  
 Each of the parties hereto hereby acknowledges that the Purchaser intends to assign rights under this Agreement pursuant to the Receivables Agreement and the GE Purchase Agreement and that such assignees may (except
as otherwise agreed to by such assignees) further assign their rights under this Agreement, and the Originators hereby consent to any such assignments. All such assignees, including parties to the Receivables Purchase Agreement and parties to the GE
Purchase Agreement in the case of assignment to such parties, shall be third party beneficiaries of, and shall be entitled to enforce the Purchaser’s rights and remedies under, this Agreement to the same extent as if they were parties 

  

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 Amendment 1 to SPX Purchase and Contribution Agreement 
  

 
hereto, except to the extent specifically limited under the terms of their assignment. 
  
 2. Consent by the Agent. In accordance with clause (m) of Exhibit IV of the Receivables Purchase Agreement, the Agent acknowledges,
and hereby consents to the amendment of the Agreement as provided for in this Amendment. 
  
 3. Consent by the Originators, SPX, the Purchaser and the Agent. Each of the Originators, SPX, the Purchaser and the Agent agree to, and hereby do, consent to the execution, delivery and performance of the GE
Purchase Agreement by the parties thereto and the consummation of each of the transactions contemplated by the GE Purchase Agreement, notwithstanding any provision of the Agreement or any other Transaction Document (including, without limitation the
Lock-Box Agreements) to the contrary. 
  
 4. Conditions to Effectiveness.
The effectiveness of this Amendment is subject to the satisfaction of the conditions precedent identified in Amendment 1 to the Receivables Purchase Agreement, dated as of September 29, 2004, by and among the Purchaser, SPX, Atlantic Asset
Securitization Corp. and Calyon New York Branch, individually and as Agent or any waiver of any such conditions precedent mutually agreed upon by the parties thereto. 
  
 5. Execution in Counterparts, Etc. This Amendment may be executed in any number of counterparts, each of which when so executed shall
be deemed to be an original and all of which when taken together shall constitute one and the same Amendment. The delivery of an executed signature page to this Amendment by telecopy transmission shall constitute due execution and delivery of this
Amendment for all purposes. 
  
 6. Agreement in Full Force and Effect.
Except as amended by this Amendment, all of the provisions of the Agreement and all of the provisions of all other documentation required to be delivered with respect thereto shall remain in full force and effect from and after the date hereof.

  
 7. References to the Agreement. From and after the date hereof, (a) all
references in the Agreement to “this Agreement,” “hereof,” “herein,” or similar terms and (b) all references to the Agreement in each agreement, instrument and other document executed or delivered in connection with the
Agreement, shall mean and refer to the Agreement, as amended by this Amendment. 
  
 8. Further Assurances. The parties hereto agree to execute and deliver any and all further agreements, certificates and other documents reasonably necessary to implement the provisions of this Amendment. 
  
 9. GOVERNING LAW. THIS AGREEMENT SHALL BE GOVERNED BY, AND CONSTRUED
IN ACCORDANCE WITH, THE LAW OF THE STATE OF NEW YORK (WITHOUT GIVING EFFECT TO THE CONFLICT OF LAWS PRINCIPLES THEREOF), OTHER THAN SECTIONS 5-1401 AND 5-1402 OF THE NEW YORK GENERAL OBLIGATIONS LAW WHICH SHALL APPLY HERETO, EXCEPT TO THE EXTENT
THAT THE PERFECTION OF THE PURCHASER’S OWNERSHIP OF OR SECURITY INTERESTS IN THE RECEIVABLES AND RELATED SECURITY OR 

  

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 Amendment 1 to SPX Purchase and Contribution Agreement 
  

 
REMEDIES HEREUNDER, IN RESPECT THEREOF, ARE GOVERNED BY THE LAWS OF A JURISDICTION OTHER THAN THE STATE OF NEW YORK. 
  
 [Signature Page to Follow] 
  

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 Amendment 1 to SPX Purchase and Contribution Agreement 
  

  
 IN WITNESS WHEREOF, the parties have
caused this Amendment to be executed by their respective officers thereunto duly authorized, as of the date first above written. 
  

			
	SPX RECEIVABLES, LLC
		
	By	 	 /s/    Christopher J. Kearney

	Name:	 	 Christopher J. Kearney

	Title:	 	 Vice President and Secretary

	
	SPX CORPORATION
		
	By	 	 /s/    Christopher J. Kearney

	Name:	 	 Christopher J. Kearney

	Title:	 	 Vice President, Secretary and General Counsel

	
	TRANSPORTATION & INDUSTRIAL
SOLUTIONS, a division of SPX Corporation
		
	By	 	 /s/    Christopher J. Kearney

	Name:	 	 Christopher J. Kearney

	Title:	 	 Vice President, Secretary and General Counsel

	
	WAUKESHA ELECTRIC SYSTEMS, INC.
		
	By	 	 /s/    Christopher J. Kearney

	Name:	 	 Christopher J. Kearney

	Title:	 	 Vice President and Secretary

  

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 Amendment 1 to SPX Purchase and Contribution Agreement 
  

					
	MARLEY COOLING TECHNOLOGIES, INC.
		
	By	 	 /s/ Christopher J. Kearney

	Name:	 	 	 	 Christopher J. Kearney

	Title:	 	 	 	 Executive Vice President and Secretary

	
	EDWARDS SYSTEMS TECHNOLOGY, INC.
		
	By	 	 /s/ Christopher J. Kearney

	Name:	 	 	 	 Christopher J. Kearney

	Title:	 	 	 	 Vice President and Secretary

  

  

 2 

							
	AGENT:	 	CALYON NEW YORK BRANCH
			
	 	 	By:	 	 /s/ David Fink

	 	 	Name:	 	 	 	 David Fink

	 	 	Title:	 	 	 	 Managing Director

  

							
			
	 	 	By:	 	 /s/ Tina Kourmpetis

	 	 	Name:	 	 	 	 Tina Kourmpetis

	 	 	Title:	 	 	 	 Managing Director

  

 3Specimen certificate for Accredited Mortgage Loan

 Exhibit 4.1 
  

Number: 
  
 Shares 
  
 CUSIP
NO.: 00438G 20 5 
  
 9.75% Series A Perpetual Cumulative
Preferred Shares 
  
 (par value $1.00 per share)

  
 (liquidation preference $25.00 per share)

  
 of 
  
 Accredited Mortgage Loan REIT Trust 
  
 FACE OF SECURITY 
  
 UNLESS THIS CERTIFICATE IS PRESENTED BY AN AUTHORIZED REPRESENTATIVE OF THE DEPOSITORY TRUST COMPANY, A NEW YORK CORPORATION
(“DTC”), TO THE TRUST OR ITS AGENT FOR REGISTRATION OF TRANSFER, EXCHANGE OR PAYMENT, AND ANY CERTIFICATE ISSUED IS REGISTERED IN THE NAME OF CEDE & CO. OR IN SUCH OTHER NAME AS IS REQUESTED BY AN AUTHORIZED REPRESENTATIVE OF DTC (AND
ANY PAYMENT IS MADE TO CEDE & CO., OR TO SUCH OTHER ENTITY AS IS REQUESTED BY AN AUTHORIZED REPRESENTATIVE OF DTC), ANY TRANSFER, PLEDGE OR OTHER USE HEREOF FOR VALUE OR OTHERWISE BY OR TO ANY PERSON IS WRONGFUL IN AS MUCH AS THE REGISTERED
OWNER HEREOF, CEDE & CO. HAS AN INTEREST HEREIN. 
  
 TRANSFERS OF THIS
GLOBAL SECURITY SHALL BE LIMITED TO TRANSFERS IN WHOLE, BUT NOT IN PART, TO NOMINEES OF DTC OR TO A SUCCESSOR THEREOF OR SUCH SUCCESSOR’S NOMINEE AND TRANSFERS OF PORTIONS OF THIS GLOBAL SECURITY SHALL BE LIMITED TO TRANSFERS MADE IN ACCORDANCE
WITH THE RESTRICTIONS SET FORTH IN THE DECLARATION OF TRUST REFERRED TO BELOW. 
  
 The preferred shares evidenced by this certificate are subject to restrictions on transfer for the purpose of the Trust’s maintenance of its status as a real estate investment trust (a “REIT”) under
the Internal Revenue Code of 1986, as amended (the “Code”). Subject to certain further restrictions and except as provided in the Declaration of Trust (as defined below), no Person may (i) Beneficially Own Shares in excess of 9.8% of the
value of all outstanding Shares, (ii) Beneficially Own Shares that would result in the Shares being Beneficially Owned by fewer than 100 Persons (determined without reference to any rules of attribution), (iii) Beneficially Own Shares that would
result in the Trust being “closely held” under Section 856(h) of the Code or otherwise cause the Trust to fail to 

 qualify as a REIT, or (iv) Constructively Own Shares that would cause the Trust to Constructively Own 10% or more of
the ownership interests in a tenant of the Trust’s real property, within the meaning of Section 856(d)(2)(B) of the Code. Any Person who attempts to Beneficially or Constructively Own Shares in excess of the above limitations must immediately
notify the Trust in writing. If any restrictions above are violated, the Shares evidenced hereby will be transferred automatically to a Share Trust and shall be designated Shares-in-Trust for the benefit of one or more charitable beneficiaries. In
addition, upon the occurrence of certain events, attempted transfers in violation of the restrictions described above may be void ab initio. A copy of the Declaration of Trust, including the restrictions on transfer, will be sent without charge to
each Shareholder who so requests. Such request must be made to the Secretary of the Trust at its principal office or to the Transfer Agent. 
  
 The Trust will furnish to any shareholder, on request and without charge, a full statement of the information required by Section 8-203(d) of the
Corporations and Associations Article of the Annotated Code of Maryland with respect to the designations and any preferences, conversion and other rights, voting powers, restrictions, limitations as to dividends and other distributions,
qualifications, and terms and conditions of redemption of the shares of each class of beneficial interest which the Trust has authority to issue and, if the Trust is authorized to issue any preferred or special class in series, (i) the differences
in the relative rights and preferences between the shares of each series to the extent set, and (ii) the authority of the Board of Trustees to set such rights and preferences of subsequent series. The foregoing summary does not purport to be
complete and is subject to and qualified in its entirety by reference to the Trust’s Declaration of Trust, as amended and restated, and as supplemented by the Articles Supplementary relating to the preferred shares evidenced hereby, as the same
may be further amended and supplemented from time to time. 
  
 Accredited Mortgage Loan REIT Trust, a Maryland real estate investment trust (the “Trust”), hereby certifies that (the “Holder”) is the registered owner of fully paid and non-assessable preferred shares of the Trust
designated the 9.75% Series A Perpetual Cumulative Preferred Shares, par value $1.00 per share and liquidation preference $25.00 per share (the “Series A Preferred Shares”). The Series A Preferred Shares are transferable on the books and
records of the Registrar, in person or by a duly authorized attorney, upon surrender of this certificate duly endorsed and in proper form for transfer. The designation, rights, privileges, restrictions, preferences and other terms and provisions of
the preferred shares evidenced hereby are issued and shall in all respects be subject to the provisions of the Declaration of Trust and Amended and Restated Bylaws of the Trust. Capitalized terms used but not defined herein shall have the respective
meanings given to them in the Declaration of Trust. 
  
 This
Certificate and the Series A Preferred Shares evidenced hereby are issued and shall be held subject to all of the provisions of the Declaration of Trust and Bylaws of the Trust and any amendments thereto. 
  
 Unless the Transfer Agent’s Certificate of Authentication hereon has
been properly executed, the Holder of the preferred shares evidenced hereby shall not be entitled to any benefit under the Declaration of Trust and this certificate shall not be valid or obligatory for any purpose. 
  

 2 

 IN WITNESS WHEREOF, Accredited Mortgage Loan REIT Trust has executed this certificate as of the date set
forth below. 
  

			
	ACCREDITED MORTGAGE LOAN REIT TRUST
		
	 By:
	 	  

		
	 Name:
	 	 
		
	 Title:
	 	 

  
 Dated: 
  

 3 

 TRANSFER AGENT’S CERTIFICATE OF AUTHENTICATION 
  
 This is one of the certificates evidencing Series A Preferred Shares referred
to in the within mentioned Articles Supplementary. 
  

			
		
	 By:
	 	  

		
	 Name:
	 	 
		
	 Title:
	 	 

  
 Dated:
             
  

 4 

 ASSIGNMENT 
  
 FOR VALUE RECEIVED, the undersigned assigns and transfers the Series A Preferred Shares evidenced hereby to: 
  
 __________________________________________________________________________________ 
  
 _______________ 
  
 __________________________________________________________________________________ 
  
 _______________ 
  
  
 (Insert assignee’s social security or tax identification number) 
  
 __________________________________________________________________________________ 
  
 _______________ 
  
 (Insert address and zip code of assignee) 
  
 __________________________________________________________________________________ 
  
 _______________ 
  
 __________________________________________________________________________________ 
  
 _______________ 
  
 and irrevocably appoints: 
  
  
 ___________________________________________________________________________________ 
  
 as agent to transfer the Preferred Shares evidenced hereby on the books of the Transfer Agent and Registrar. The agent may substitute another to act for him or her. 
  

 5 

 Date:
                     
  
 Signature:
                                        
                                        
             
  
 (Sign exactly as your name appears on the other side of this Preferred Shares Certificate) 
  
 Signature Guarantee:
                                1 

	1.	Signature must be guaranteed by an “eligible guarantor institution” (i.e., a bank, stockbroker, savings and loan association or credit union) meeting the requirements of
the Registrar, which requirements include 

  

 6 

 SCHEDULE OF EXCHANGES FOR GLOBAL SECURITY 
  
 The initial number of Series A Preferred Shares evidenced by this Global
Preferred Share shall be             . The following exchanges of a part of this Global Preferred Share have been made: 
  

							
	 Date of Exchange

	 	 Amount of increase in
 the number of shares
 evidenced by this Global
 Preferred Share

	 	 Number of shares evidenced by this
 Global Preferred Share following
 such
increase or decrease

	 	 Signature of
 authorized
 officer
 of Registrar

	 	 	 	 	 	 	 
	 	 	 	 	 	 	 
	 	 	 	 	 	 	 
	 	 	 	 	 	 	 
	 	 	 	 	 	 	 
	 	 	 	 	 	 	 
	 	 	 	 	 	 	 

  

 7 

 GUARANTEE 
  

For value received, Accredited Home Lenders Holding Co., a Delaware corporation (the “Guarantor”) hereby fully and unconditionally guarantees
to each Holder the due and punctual payment of the Guarantee Payments, as and to the extent applicable (without duplication of amounts theretofore paid by Accredited Mortgage Loan REIT Trust, a Maryland real estate investment trust (“the
Issuer”)), when and as the same shall become due and payable, according to the terms of the 9.75% Series A Perpetual Cumulative Preferred Shares, par value $1.00 per share and liquidation preference $25.00 per share (the “Series A
Preferred Shares”) as set forth in the Issuer’s Declaration of Trust, as amended and restated and as supplemented by the Articles Supplementary relating to the Series A Preferred Shares, as amended and supplemented from time to time,
regardless of any defense, right of set-off or counterclaim which the Issuer or the Guarantor may have or assert. In case of the failure of the Issuer or any successor thereto punctually to pay any such Guarantee Payments, as and to the extent
applicable, the Guarantor hereby agrees to cause any such payment to be made punctually when and as the same shall become due and payable, as if such payment were made by the Issuer. The Guarantor’s obligation to make a Guarantee Payment may be
satisfied by direct payment of the required amounts by the Guarantor to or for the benefit of the Holders or by payment by the Issuer of such amounts to or for the benefit of the Holders. All terms used in this Guarantee that are defined in the
Preferred Shares Guarantee Agreement to which this Guarantee relates shall have the meanings assigned to them in such Preferred Shares Guarantee Agreement, dated as of October 6, 2004, from the Guarantor to the Holders of the Series A Preferred
Shares. 
  
 The Guarantor hereby waives notice of acceptance of
the Guarantee Agreement and of any liability to which it applies or may apply, presentment, demand for payment, any right to require a proceeding first against the Issuer or any other Person before proceeding against the Guarantor, protest, notice
of nonpayment, notice of dishonor, notice of redemption and all other notices and demands. 
  
 The Guarantor hereby agrees that its obligations under the Guarantee Agreement shall be as if it were a principal obligor and not merely a surety and shall be full and unconditional, irrespective of the validity,
regularity or enforceability of any provision of the Series A Preferred Shares, the absence of any action to enforce the same, any waiver or consent by the Holder of any Series A Preferred Shares with respect to any terms thereof, the recovery of
any judgment against the Issuer or any action to enforce the same, or any circumstance which might otherwise constitute a legal or equitable discharge or defense of a guarantor. The Guarantor acknowledges that its obligations hereunder are
independent of the obligations of the Issuer with respect to the Series A Preferred Shares and that the Guarantor shall be liable as a principal obligor hereunder to make Guarantee Payments pursuant to the terms of the Guarantee Agreement
notwithstanding the occurrence of any event referred to in Section 2.03 of the Guarantee Agreement. 
  
 Any Holder of Series A Preferred Shares may institute a legal proceeding directly against the Guarantor to enforce its rights under the Guarantee
Agreement, without first instituting a legal proceeding against the Issuer or any other Person. 
  
 The Guarantee Agreement creates a guarantee of payment and not merely of collection. The Guarantee Agreement will not be discharged except (i) by payment
of the Dividend 
  

 8 

 Payments, the Redemption Price or the Liquidation Distribution, if and as applicable, in full by the Issuer, (ii) by
payment of the Guarantee Payments in full (without duplication of amounts theretofore paid by the Issuer) by the Guarantor or (iii) upon termination of the Guarantee Agreement pursuant to Section 5.01 thereof. 
  
 The Guarantor shall be subrogated to all (if any) rights of the Holders
against the Issuer in respect of any amounts paid by the Guarantor to the Holders by the Guarantor under the Guarantee Agreement; provided, however, that the Guarantor shall not (except to the extent required by mandatory provisions of law) be
entitled to enforce or exercise any rights which it may acquire by way of subrogation or any indemnity, reimbursement or other agreement, in all cases as a result of payment under the Guarantee Agreement, if, at the time of any such payment, any
amounts are due and unpaid under the Guarantee Agreement. If any amount shall be paid to the Guarantor in violation of the preceding sentence, the Guarantor agrees to hold such amount in trust for the applicable Holders and to pay over such amount
to or for the applicable Holders. 
  
 If any Holder of Series A
Preferred Shares is required by any court or otherwise to return to the Issuer or the Guarantor, or any custodian, receiver, liquidator, assignee, trustee, sequestrator or similar official acting in relation to the Issuer or the Guarantor, any
amount paid to such Holder in respect of such Guarantee Payments, the Guarantee issued under the Guarantee Agreement, to the extent theretofore discharged, shall be reinstated in full force and effect. 
  
 This Guarantee shall not be valid or obligatory for any purpose unless and
until the Series A Preferred Shares to which this Guarantee relates are duly authorized, issued and outstanding. 
  
 Reference is made to the Preferred Shares Guarantee Agreement for further provisions with respect to this Guarantee. 
  
 [REMAINDER OF PAGE INTENTIONALLY LEFT BLANK] 
  

 9 

 THE GUARANTEE AGREEMENT AND THIS GUARANTEE SHALL BE GOVERNED BY AND CONSTRUED IN ACCORDANCE WITH THE LAWS
OF THE STATE OF NEW YORK, WITHOUT REGARD TO CONFLICT OF LAWS PRINCIPLES THEREUNDER, THAT WOULD APPLY THE LAWS OF ANOTHER JURISDICTION. 
  

			
	 Accredited Home Lenders Holding Co.
 as Guarantor

		
	 By:
	 	  

	 Name:
 Title:
	 	 

  

 10

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