Document:

Exhibit 4.01 Saxon Indenture

    

      EXHIBIT
        4.01

      

      EXECUTION
        VERSION

      

       

      SAXON
        CAPITAL, INC.,

       

      

       

      AS
        ISSUER,

       

      

       

      THE
        GUARANTORS NAMED ON THE SIGNATURE PAGES HERETO

       

      

       

      AND

       

      

       

      DEUTSCHE
        BANK TRUST COMPANY AMERICAS,

       

      

       

      AS
        TRUSTEE

       

      

       

      INDENTURE

       

      

       

      DATED
        AS OF MAY 4, 2006

       

      

       

      

       

      12%
        SENIOR NOTES DUE 2014

       

      

      

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

      TABLE
        OF CONTENTS

       

      
        	
                ARTICLE
                  I

              
	 	 	
                Page

              
	
                DEFINITIONS
                  AND INCORPORATION BY REFERENCE

              
	
                SECTION
                  1.01.

              	
                Definitions

              	
                1

              
	
                SECTION
                  1.02.

              	
                Other
                  Definitions

              	
                33

              
	
                SECTION
                  1.03.

              	
                Incorporation
                  by Reference of Trust Indenture Act

              	
                34

              
	
                SECTION
                  1.04.

              	
                Rules
                  of Construction

              	
                35

              
	
                SECTION
                  1.05.

              	
                Acts
                  of Holders

              	
                36

              
	
                ARTICLE
                  II

              
	 	 	 
	
                THE
                  NOTES

              
	
                SECTION
                  2.01.

              	
                Form
                  and Dating

              	
                37

              
	
                SECTION
                  2.02.

              	
                Execution
                  and Authentication

              	
                38

              
	
                SECTION
                  2.03.

              	
                Registrar
                  and Paying Agent

              	
                39

              
	
                SECTION
                  2.04.

              	
                Paying
                  Agent to Hold Money in Trust

              	
                39

              
	
                SECTION
                  2.05.

              	
                Holder
                  Lists

              	
                40

              
	
                SECTION
                  2.06.

              	
                Transfer
                  and Exchange

              	
                40

              
	
                SECTION
                  2.07.

              	
                Replacement
                  Notes

              	
                41

              
	
                SECTION
                  2.08.

              	
                Outstanding
                  Notes

              	
                44

              
	
                SECTION
                  2.09.

              	
                Treasury
                  Notes

              	
                44

              
	
                SECTION
                  2.10.

              	
                Temporary
                  Notes

              	
                45

              
	
                SECTION
                  2.11.

              	
                Cancellation

              	
                45

              
	
                SECTION
                  2.12.

              	
                Defaulted
                  Interest

              	
                45

              

      

      
        	
                SECTION
                  2.13.

              	
                Record
                  Date

              	
                46

              
	
                SECTION
                  2.14.

              	
                Computation
                  of Interest

              	
                46

              
	
                SECTION
                  2.15.

              	
                CUSIP
                  Number

              	
                46

              
	
                SECTION
                  2.16.

              	
                Special
                  Transfer Provisions

              	
                46

              
	
                SECTION
                  2.17.

              	
                Issuance
                  of Additional Notes

              	
                49

              
	
                ARTICLE
                  III

              
	 	 	 
	
                REDEMPTION

              
	
                SECTION
                  3.01.

              	
                Notices
                  to Trustee

              	
                49

              
	
                SECTION
                  3.02.

              	
                Selection
                  of Notes to Be Redeemed

              	
                50

              
	
                SECTION
                  3.03.

              	
                Notice
                  of Redemption

              	
                5

              
	
                SECTION
                  3.04.

              	
                Effect
                  of Notice of Redemption

              	
                51

              
	
                SECTION
                  3.05.

              	
                Deposit
                  of Redemption Price

              	
                51

              
	
                SECTION
                  3.06.

              	
                Notes
                  Redeemed in Part

              	
                51

              
	
                SECTION
                  3.07.

              	
                Optional
                  Redemption

              	
                51

              
	
                SECTION
                  3.08.

              	
                Mandatory
                  Redemption or Repurchase

              	
                52

              
	
                SECTION
                  3.09.

              	
                Offer
                  to Purchase by Application of Net Proceeds

              	
                52

              
	 	 	 
	
                ARTICLE
                  IV

              
	 	 	 
	
                COVENANTS

              
	
                SECTION
                  4.01.

              	
                Payment
                  of Notes

              	
                54

              
	
                SECTION
                  4.02.

              	
                Maintenance
                  of Office or Agency

              	
                54

              
	
                SECTION
                  4.03.

              	
                Reports

              	
                55

              

      

      
        	
                SECTION
                  4.04.

              	
                Compliance
                  Certificate

              	
                56

              
	
                SECTION
                  4.05.

              	
                Taxes

              	
                56

              
	
                SECTION
                  4.06.

              	
                Stay,
                  Extension and Usury Laws

              	
                56

              
	
                SECTION
                  4.07.

              	
                Restricted
                  Payments

              	
                56

              
	
                SECTION
                  4.08.

              	
                Maintenance
                  of Total Unencumbered Assets

              	
                61

              
	
                SECTION
                  4.09.

              	
                Dividend
                  and Other Payment Restrictions Affecting Restricted
                  Subsidiaries

              	
                61

              
	
                SECTION
                  4.10.

              	
                Limitation
                  on Incurrence of Additional Non-Funding Indebtedness

              	
                63

              
	
                SECTION
                  4.11.

              	
                Limitation
                  on Asset Sales

              	
                64

              
	
                SECTION
                  4.12.

              	
                Additional
                  Restricted Subsidiary Guarantees

              	
                66

              
	
                SECTION
                  4.13.

              	
                Transactions
                  with Affiliates

              	
                66

              
	
                SECTION
                  4.14.

              	
                Liens

              	
                68

              
	
                SECTION
                  4.15.

              	
                Existence;
                  Conduct of Business

              	
                68

              
	
                SECTION
                  4.16.

              	
                Repurchase
                  at the Option of Holders upon a Change of Control

              	
                69

              
	
                SECTION
                  4.17.

              	
                Excess
                  Cash Flow Offer

              	
                71

              
	
                SECTION
                  4.18.

              	
                [Reserved]

              	
                72

              
	
                SECTION
                  4.19.

              	
                Application
                  of Suspension Covenants

              	
                72

              
	 	 	 
	
                ARTICLE
                  V

              
	 	 	 
	
                SUCCESSORS

              
	
                SECTION
                  5.01.

              	
                Merger,
                  Consolidation, or Sale of Assets

              	
                73

              
	
                SECTION
                  5.02.

              	
                Successor
                  Corporation Substituted

              	
                74

              
	
                SECTION
                  5.03.

              	
                Merger
                  of Guarantors

              	
                75

              

      

      
        	 	 	 
	
                ARTICLE
                  VI

              
	 	 	 
	
                DEFAULTS
                  AND REMEDIES

              
	
                SECTION
                  6.01.

              	
                Events
                  of Default

              	
                75

              
	
                SECTION
                  6.02.

              	
                Acceleration

              	
                77

              
	
                SECTION
                  6.03.

              	
                Other
                  Remedies

              	
                77

              
	
                SECTION
                  6.04.

              	
                Waiver
                  of Existing Defaults

              	
                77

              
	
                SECTION
                  6.05.

              	
                Control
                  by Majority

              	
                78

              
	
                SECTION
                  6.06.

              	
                Limitation
                  on Suits

              	
                78

              
	
                SECTION
                  6.07.

              	
                Rights
                  of Holders of Notes to Receive Payment

              	
                78

              
	
                SECTION
                  6.08.

              	
                Collection
                  Suit by Trustee

              	
                78

              
	
                SECTION
                  6.09.

              	
                Trustee
                  May File Proofs of Claim

              	
                79

              
	
                SECTION
                  6.10.

              	
                Priorities

              	
                79

              
	
                SECTION
                  6.11.

              	
                Undertaking
                  for Costs

              	
                80

              
	
                SECTION
                  6.12.

              	
                Restoration
                  of Rights and Remedies

              	
                80

              
	
                SECTION
                  6.13.

              	
                Rights
                  and Remedies Cumulative

              	
                80

              
	
                SECTION
                  6.14.

              	
                Delay
                  and Omission Not Waiver

              	
                80

              
	 	 	 
	
                ARTICLE
                  VII

              
	 	 	 
	
                TRUSTEE

              
	
                SECTION
                  7.01.

              	
                Duties
                  of Trustee

              	
                80

              
	
                SECTION
                  7.02.

              	
                Rights
                  of Trustee

              	
                82

              
	
                SECTION
                  7.03.

              	
                Individual
                  Rights of Trustee

              	
                83

              
	
                SECTION
                  7.04.

              	
                Trustee’s
                  Disclaimer

              	
                83

              
	
                SECTION
                  7.05.

              	
                Notice
                  of Defaults

              	
                83

              
	
                SECTION
                  7.06.

              	
                Reports
                  by Trustee to Holders of the Notes

              	
                83

              
	
                SECTION
                  7.07.

              	
                Compensation
                  and Indemnity

              	
                84

              
	
                SECTION
                  7.08.

              	
                Replacement
                  of Trustee

              	
                85

              
	
                SECTION
                  7.09.

              	
                Successor
                  Trustee by Merger, etc.

              	
                85

              
	
                SECTION
                  7.10.

              	
                Eligibility;
                  Disqualification

              	
                86

              
	
                SECTION
                  7.11.

              	
                Preferential
                  Collection of Claims Against the Company

              	
                86

              
	 	 	 
	
                ARTICLE
                  VIII

              
	 	 	 
	
                LEGAL
                  DEFEASANCE AND COVENANT DEFEASANCE

              
	
                SECTION
                  8.01.

              	
                Option
                  to Effect Legal Defeasance or Covenant Defeasance

              	
                86

              
	
                SECTION
                  8.02.

              	
                Legal
                  Defeasance and Discharge

              	
                86

              
	
                SECTION
                  8.03.

              	
                Covenant
                  Defeasance

              	
                87

              
	
                SECTION
                  8.04.

              	
                Conditions
                  to Legal or Covenant Defeasance

              	
                87

              
	
                SECTION
                  8.05.

              	
                Deposited
                  Money and Government Securities to Be Held in Trust; Other Miscellaneous
                  Provisions

              	
                89

              
	
                SECTION
                  8.06.

              	
                Repayment
                  to Company

              	
                89

              
	
                SECTION
                  8.07.

              	
                Reinstatement

              	
                90

              
	 	 	 
	
                ARTICLE
                  IX

              
	 	 	 
	
                AMENDMENT,
                  SUPPLEMENT AND WAIVER

              
	
                SECTION
                  9.01.

              	
                Without
                  Consent of Holders of Notes

              	
                90

              
	
                SECTION
                  9.02.

              	
                With
                  Consent of Holders of Notes

              	
                91

              
	
                SECTION
                  9.03.

              	
                Compliance
                  with Trust Indenture Act

              	
                93

              
	
                SECTION
                  9.04.

              	
                Revocation
                  and Effect of Consents

              	
                93

              
	
                SECTION
                  9.05.

              	
                Notation
                  on or Exchange of Notes

              	
                93

              
	
                SECTION
                  9.06.

              	
                Trustee
                  to Sign Amendments, etc.

              	
                93

              
	
                SECTION
                  9.07.

              	
                Payments
                  for Consent

              	
                93

              
	 	 	 
	
                ARTICLE
                  X

              
	 	 	 
	
                GUARANTEE

              
	
                SECTION
                  10.01.

              	
                Unconditional
                  Guarantee

              	
                94

              
	
                SECTION
                  10.02.

              	
                Severability

              	
                95

              
	
                SECTION
                  10.03.

              	
                Waiver
                  of Subrogation

              	
                95

              
	
                SECTION
                  10.04.

              	
                Execution
                  of Guarantee

              	
                96

              
	
                SECTION
                  10.05.

              	
                Waiver
                  of Stay, Extension or Usury Laws

              	
                96

              
	
                SECTION
                  10.06.

              	
                Release
                  of Guarantors

              	
                97

              
	 	 	 
	
                ARTICLE
                  XI

              
	 	 	 
	
                MISCELLANEOUS

              
	
                SECTION
                  11.01.

              	
                Trust
                  Indenture Act Controls

              	
                97

              
	
                SECTION
                  11.02.

              	
                Notices

              	
                97

              
	
                SECTION
                  11.03.

              	
                Communication
                  by Holders of Notes with Other Holders of Notes

              	
                99

              
	
                SECTION
                  11.04.

              	
                Certificate
                  and Opinion as to Conditions Precedent

              	
                99

              
	
                SECTION
                  11.05.

              	
                Statements
                  Required in Certificate or Opinion

              	
                99

              
	
                SECTION
                  11.06.

              	
                Rules
                  by Trustee and Agents

              	
                100

              
	
                SECTION
                  11.07.

              	
                No
                  Personal Liability of Directors, Officers, Employees, Incorporators,
                  Members and Stockholders

              	
                100

              
	
                SECTION
                  11.08.

              	
                Governing
                  Law

              	
                100

              
	
                SECTION
                  11.09.

              	
                No
                  Adverse Interpretation of Other Agreements

              	
                100

              
	
                SECTION
                  11.10.

              	
                Successors

              	
                100

              
	
                SECTION
                  11.11.

              	
                Severability

              	
                100

              
	
                SECTION
                  11.12.

              	
                Counterpart
                  Originals

              	
                100

              
	
                SECTION
                  11.13.

              	
                Table
                  of Contents, Headings, etc.

              	
                100

              
	
                SECTION
                  11.14.

              	
                Qualification
                  of Indenture

              	
                100

              
	 	 	 
	
                ARTICLE
                  XII

              
	 	 	 
	
                SATISFACTION
                  AND DISCHARGE

              
	
                SECTION
                  12.01.

              	
                Satisfaction
                  and Discharge of Indenture

              	
                101

              
	
                SECTION
                  12.02.

              	
                Application
                  of Trust Money

              	
                102

              
	
                 

              	 	 
	
                ARTICLE
                  XIII

              
	 	 	 
	
                SUBORDINATION
                  OF CERTAIN GUARANTEES

              
	
                SECTION
                  13.01.

              	
                Agreement
                  to Subordinate

              	
                102

              
	
                SECTION
                  13.02.

              	
                Liquidation,
                  Dissolution, Bankruptcy

              	
                102

              
	
                SECTION
                  13.03.

              	
                Default
                  on Senior Indebtedness of a Servicing Guarantor

              	
                103

              
	
                SECTION
                  13.04.

              	
                Demand
                  for Payment

              	
                104

              
	
                SECTION
                  13.05.

              	
                When
                  Distribution Must Be Paid Over

              	
                104

              
	
                SECTION
                  13.06.

              	
                Subrogation

              	
                104

              
	
                SECTION
                  13.07.

              	
                Relative
                  Rights

              	
                104

              
	
                SECTION
                  13.08.

              	
                Subordination
                  May Not Be Impaired by a Servicing Guarantor

              	
                105

              
	
                SECTION
                  13.09.

              	
                Rights
                  of Trustee and Paying Agent

              	
                105

              
	
                SECTION
                  13.10.

              	
                Distribution
                  or Notice to Representative

              	
                105

              
	
                SECTION
                  13.11.

              	
                Article
                  XIII Not to Prevent Events of Default or Limit Right To Demand
                  Payment

              	
                105

              
	
                SECTION
                  13.12.

              	
                Trust
                  Moneys Not Subordinated

              	
                105

              
	
                SECTION
                  13.13.

              	
                Trustee
                  Entitled to Rely

              	
                106

              
	
                SECTION
                  13.14.

              	
                Trustee
                  to Effectuate Subordination

              	
                106

              
	
                SECTION
                  13.15.

              	
                Trustee
                  Not Fiduciary for Holders of Senior Indebtedness of Servicing
                  Guarantors

              	
                106

              
	
                SECTION
                  13.16.

              	
                Reliance
                  by Holders of Senior Indebtedness of a Servicing Guarantor on
                  Subordination Provisions

              	
                106

              

      

       

      Exhibits:

       

      Exhibit
        A Form
        of
        Note

      Exhibit
        B Form
        of
        Certificate to Be Delivered in Connection with Transfers Pursuant to Rule
        144A

      Exhibit
        C Form
        of
        Certificate to Be Delivered in Connection with Transfers Pursuant to
        Regulation S

      Exhibit
        D Form
        of
        Certificate from Acquiring Accredited Investor

      

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

      CROSS-REFERENCE
        TABLE

       

      
        	
                TIA
                  Section

                 

              	
                Indenture
                  Section

                 

              
	
                310

              	
                (a)(1)

              	
                7.10

              
	 	
                (a)(2)

              	
                7.10

              
	 	
                (a)(3)

              	
                N/A

              
	 	
                (a)(4)

              	
                N/A

              
	 	
                (b)

              	
                7.08;
                  7.10

              
	 	
                (c)

              	
                N/A

              
	
                311

              	
                (a)

              	
                7.11

              
	 	
                (b)

              	
                7.11

              
	 	
                (c)

              	
                N/A

              
	
                312

              	
                (a)

              	
                2.05

              
	 	
                (b)

              	
                11.03

              
	 	
                (c)

              	
                11.03

              
	
                313

              	
                (a)

              	
                7.06

              
	 	
                (b)(1)

              	
                N/A

              
	 	
                (b)(2)

              	
                7.06

              
	 	
                (c)

              	
                11.02

              
	 	
                (d)

              	
                7.06

              
	
                314

              	
                (a)

              	
                4.03;
                  4.04

              
	 	
                (b)

              	
                N/A

              
	 	
                (c)(1)

              	
                11.04

              
	 	
                (c)(2)

              	
                11.04

              
	 	
                (c)(3)

              	
                11.04

              
	 	
                (d)

              	
                N/A

              
	 	
                (e)

              	
                11.05

              
	 	
                (f)

              	
                N/A

              
	
                315

              	
                (a)

              	
                7.01

              
	 	
                (b)

              	
                7.05;
                  12.02

              
	 	
                (c)

              	
                7.01

              
	 	
                (d)

              	
                7.01

              
	 	
                (e)

              	
                6.11

              
	
                316

              	
                (a)
                  (last sentence)

              	
                2.09

              
	 	
                (a)(1)(A)

              	
                6.05

              
	 	
                (a)(1)(B)

              	
                6.04

              
	 	
                (a)(2)

              	
                N/A

              
	 	
                (b)

              	
                6.07

              
	 	
                317(a)(1)

              	
                6.08

              
	 	
                (a)(2)

              	
                6.09

              
	 	
                (b)

              	
                2.04

              
	
                318

              	
                (a)

              	
                1.01

                 

              

      

      N/A
        means
        Not Applicable

      
        	
                Note:

              	
                This
                  Cross-Reference Table shall not, for any purpose, be deemed to
                  be part of
                  this Indenture.

              

      

      

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

          
            

          

        

      

      INDENTURE
        dated as of May 4, 2006 among Saxon Capital, Inc., a Maryland corporation
        (as
        further defined below, the “Company”),
        the
        Guarantors (the “Guarantors”)
        and
        Deutsche Bank Trust Company Americas, as trustee (the “Trustee”).

       

      The
        Company, the Guarantors and the Trustee agree as follows for the benefit
        of each
        other and for the equal and ratable benefit of the Holders of the
        Notes:

       

      ARTICLE
        I  

       

       

      DEFINITIONS
        AND INCORPORATION BY REFERENCE

       

      SECTION
        1.01.  Definitions.

       

      “Accredited
        Investor”
means
        an institutional “accredited investor” (as defined in Rule 501(a)(1), (2), (3)
        or (7) under the Securities Act).

       

      “Acquired
        Indebtedness”
means
        Indebtedness of a Person or any of its Restricted Subsidiaries existing at
        the
        time such Person becomes a Restricted Subsidiary of the Company or at the
        time
        it merges or consolidates with the Company or any of its Restricted Subsidiaries
        or assumed in connection with the acquisition of assets from such Person
        and in
        each case not incurred by such Person in connection with, or in anticipation
        or
        contemplation of, such Person becoming a Restricted Subsidiary of the Company
        or
        such acquisition, merger or consolidation.

       

      “Additional
        Notes”
means
        any Notes issued under this Indenture (including Initial Additional Notes)
        in
        addition to the Initial Notes (other than any Notes issued in respect of
        Initial
        Notes pursuant to Section 2.06, 2.07, 2.10, 3.06, 3.09, 4.11, 4.16, 4.17
        or
        9.05).

       

      “Affiliate”
means,
        with respect to any specified Person, any other Person who directly or
        indirectly through one or more intermediaries, controls, or is controlled
        by, or
        is under common control with, such specified Person. The term “control” means
        the possession, directly or indirectly, of the power to direct or cause the
        direction of the management and policies of a Person, whether through the
        ownership of voting securities, by contract or otherwise; and the terms
“controlling” and “controlled” have meanings correlative of the
        foregoing.

       

      “Agent”
means
        any Registrar or Paying Agent.

       

      “Applicable
        Premium”
means,
        with respect to any Note on any applicable redemption date, the greater
        of:

       

      (1) 1.0%
        of
        the principal amount of such Note; and

       

      (2) the
        excess, if any, of:

       

      (a) the
        present value at such redemption date of (i) the outstanding principal amount
        of
        such Note at its final maturity plus (ii) all required interest payments
        (excluding accrued and unpaid interest to such redemption date) due on such
        Note
        through its final maturity, computed using a discount rate equal to the Treasury
        Rate as of such redemption date plus 50 basis points; over

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

      (b) the
        principal amount of such Note.

       

      “Asset
        Acquisition”
means:
        (1) an Investment by the Company or any Restricted Subsidiary of the Company
        in
        any other Person pursuant to which such Person shall become a Restricted
        Subsidiary of the Company or of any Restricted Subsidiary of the Company,
        or
        shall be merged with or into the Company or any Restricted Subsidiary of
        the
        Company; or (2) the acquisition by the Company or any Restricted Subsidiary
        of
        the Company of the assets of any Person (other than a Restricted Subsidiary
        of
        the Company) that constitute all or substantially all of the assets of such
        Person or comprise any division or line of business of such Person or any
        other
        properties or assets of such Person other than in the ordinary course of
        business.

       

      “Asset
        Sale”
means
        any direct or indirect sale, issuance, conveyance, transfer, lease, assignment
        or other transfer for value by the Company or any of its Restricted Subsidiaries
        (including any sale and leaseback transaction) to any Person of (A) shares
        of
        Capital Stock of a Restricted Subsidiary, (B) all or substantially all the
        assets of any division or line of operating business of the Company or any
        Restricted Subsidiary or (C) any other assets of the Company or any Restricted
        Subsidiary.

       

      Notwithstanding
        the preceding, the following items shall not be deemed to be Asset
        Sales:

       

      (1) the
        sale,
        lease, conveyance, disposition or other transfer of all or substantially
        all of
        the assets of the Company as permitted by Section 5.01 hereof;

       

      (2) a
        transfer of assets or an issuance of Capital Stock by a Restricted Subsidiary
        to
        the Company or to another Restricted Subsidiary or a transfer of assets by
        the
        Company to a Restricted Subsidiary;

       

      (3) solely
        for purposes of Section 4.11, a Permitted Investment or a Restricted Payment
        that is permitted by Section 4.07 (including any formation of or contribution
        of
        assets to a Subsidiary or a joint venture);

       

      (4) leases
        or
        subleases to third parties, of real property owned in fee or leased by the
        Company or its Subsidiaries or a disposition or assignment (as lessor) of
        a
        lease of real property, or a license of intellectual property, in each case,
        in
        the ordinary course of business;

       

      (5) any
        disposition of property or assets (including inventory and accounts receivable)
        of the Company or any of its Subsidiaries in the ordinary course of business,
        or
        that in the reasonable judgment of the Company, have become uneconomic, obsolete
        or worn out;

       

      (6) the
        disposition of Cash Equivalents or cash;

       

      (7) the
        sale
        or other disposition of Capital Stock of, or other Investments in, any
        Unrestricted Subsidiary;

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

      (8) the
        sale
        or
        other disposition of Receivables, Residual Interests, net interest margin
        securities, Securitization Securities and other direct or indirect interests
        in
        Securitization Vehicles and related assets, in each case in the ordinary
        course
        of business (including by way of a Securitization);

       

      (9) Permitted
        Liens; 

       

      (10) without
        limitation of clause (8), the sale of delinquent loans to unaffiliated third
        parties;
        and

       

      (11) the
        disposition of assets with a Fair Market Value of less than $2.5
        million.

       

      “Bankruptcy
        Law”
means
        Title 11, U.S. Code or any federal or state law of any jurisdiction relating
        to
        bankruptcy, insolvency, winding up, liquidation, reorganization or relief
        of
        debtors.

       

      “Beneficial
        Owner”
has
        the
        meaning assigned to such term in Rule 13d-3 and Rule 13d-5 under the
        Exchange Act. 

       

      “Board
        of Directors”
means,
        as to any Person, the board of directors (or similar governing body) of such
        Person or any duly authorized committee thereof. Unless otherwise specified,
        “Board of Directors” means the Board of Directors of the Company.

       

      “Board
        Resolution”
means,
        with respect to any Person, a copy of a resolution certified by the Secretary
        or
        an Assistant Secretary of such Person to have been duly adopted by the Board
        of
        Directors of such Person and to be in full force and effect on the date of
        such
        certification. Unless otherwise specified “Board Resolution” means a Board
        Resolution of the Company.

       

      “Business
        Day”
means
        any day other than a Legal Holiday.

       

      “Capital
        Stock”
        means:

       

      (1) with
        respect to any Person that is a corporation, any and all shares, interests,
        participations or other equivalents (however designated and whether or not
        voting) of corporate stock, including each class of Common Stock and Preferred
        Stock of such Person; and

       

      (2) with
        respect to any Person that is not a corporation, any and all partnership,
        membership or other equity interests of such Person.

       

      “Capitalized
        Lease Obligation”
means,
        as to any Person, the obligations of such Person under a lease that are required
        to be classified and accounted for as capital lease obligations under GAAP
        and,
        for purposes of this definition, the amount of such obligations at any date
        shall be the capitalized amount of such obligations at such date, determined
        in
        accordance with GAAP and the final maturity thereof will be the date of the
        last
        payment of rent or any other amount due under such lease prior to the first
        date
        such lease may be terminated without penalty.

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

      “Cash
        Equivalents”
        means:

       

      (1) marketable
        direct obligations issued by, or unconditionally guaranteed by, the United
        States government or issued by any agency thereof and backed by the full
        faith
        and credit of the United States, in each case maturing within one year from
        the
        date of acquisition thereof;

       

      (2) marketable
        direct obligations issued by any state of the United States of America or
        any
        political subdivision of any such state or any public instrumentality thereof
        maturing within one year from the date of acquisition thereof and, at the
        time
        of acquisition, having one of the two highest ratings obtainable from either
        S&P or Moody’s;

       

      (3) commercial
        paper maturing no more than one year from the date of creation thereof and,
        at
        the time of acquisition, having a rating of at least A-1 from S&P or at
        least P-1 from Moody’s;

       

      (4) certificates
        of deposit or bankers’ acceptances maturing within one year from the date of
        acquisition thereof issued by any bank organized under the laws of the United
        States of America or any state thereof or the District of Columbia or any
        U.S.
        branch of a foreign bank having at the date of acquisition thereof combined
        capital and surplus of not less than $250.0 million;

       

      (5) repurchase
        obligations with a term of not more than seven days for underlying securities
        of
        the types described in clause (1) above entered into with any bank meeting
        the qualifications specified in clause (4) above; and

       

      (6) investments
        in money market funds that invest substantially all their assets in securities
        of the types described in clauses (1) through (5) above.

       

      “Change
        of Control”
means
        the occurrence of one or more of the following events:

       

      (1) any
        sale,
        lease, exchange or other transfer (in one transaction or a series of related
        transactions) of all or substantially all of the assets of the Company to
        any
        Person or group of related Persons for purposes of Section 13(d) of the Exchange
        Act (a “Group”),
        together with any Affiliates thereof (whether or not otherwise in compliance
        with the provisions of this Indenture), unless more than 65% of the aggregate
        ordinary voting power represented by the issued and outstanding Capital Stock
        of
        such transferee Person is owned, immediately following such transaction,
        by
        Persons who owned ordinary voting stock of the Company immediately prior
        to such
        transaction;

       

      (2) the
        approval by the holders of Capital Stock of the Company of any plan or proposal
        for the liquidation or dissolution of the Company (whether or not otherwise
        in
        compliance with the provisions of this Indenture);

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

      (3) any
        Person or Group shall become the owner, directly or indirectly, beneficially
        or
        of record, of shares representing more than 35% of the aggregate ordinary
        voting
        power represented by the issued and outstanding Capital Stock of the Company;
        or

       

      (4) the
        replacement of a majority of the Board of Directors over a two-year period
        from
        the directors who constituted the Board of Directors at the beginning of
        such
        period, and such replacement shall not have been approved by a vote of at
        least
        a majority of the Board of Directors then still in office who either were
        members of such Board of Directors at the beginning of such period or whose
        election as a member of such Board of Directors was previously so
        approved.

       

      “Clearstream”
means
        Clearstream Banking, société anonyme (formerly Cedelbank).

       

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

       

      “Common
        Stock”
of
        any
        Person means any and all shares, interests or other participations in, and
        other
        equivalents (however designated and whether voting or non-voting) of such
        Person’s common stock, whether outstanding on the Measurement Date or issued
        after the Measurement Date, and includes, all series and classes of such
        common
        stock.

       

      “Company”
means
        Saxon Capital, Inc., a Maryland corporation, and any successor Person
        thereto.

       

      “Consolidated
        Depreciation of Fixed Assets”
means,
        with respect to any Person for any period depreciation of fixed assets expense
        of such Person and its Restricted Subsidiaries for such period determined
        on a
        consolidated basis in accordance with GAAP.

       

      “Consolidated
        EBITDA”
means,
        with respect to any Person, for any period, the sum (without duplication)
        of:

       

      (1) Consolidated
        Net Income; plus

       

      (2) to
        the
        extent Consolidated Net Income has been reduced thereby:

       

      (a) all
        income taxes, franchise and similar taxes of such Person and its Restricted
        Subsidiaries paid or accrued in accordance with GAAP for such
        period;

       

      (b) Consolidated
        Interest Expense;

       

      (c) Consolidated
        Depreciation of Fixed Assets for such period;

       

      (d) amortization
        expense, including the amortization of Mortgage Servicing Rights and
        amortization of deferred financing costs, but excluding (i) amortization
        of loan
        origination and acquisition costs and (ii) amortization of deferred financing
        costs related to Funding Indebtedness;

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

      (e) the
        amount of any severance or restructuring charge or reserve deducted (and
        not
        added back) in such period in computing Consolidated Net Income;

       

      (f) any
        other
        non-cash charges (including any write-offs or write-downs of goodwill, deferred
        financing costs (other than related to Funding Indebtedness) and other assets)
        reducing Consolidated Net Income for such period (provided
        that if
        any such non-cash charges represent an accrual or reserve for potential cash
        items in any future period, the cash payment in respect thereof in such future
        period shall be subtracted from Consolidated EBITDA to such extent during
        such
        future period, and excluding amortization of a prepaid cash item that was
        paid
        in a prior period); and

       

      (g) expenses
        and charges related to any equity offering, incurrence of Indebtedness,
        Permitted Investment or acquisition or divestiture permitted to be incurred
        or
        made under this Indenture (including any such expenses or charges relating
        to
        the success and transition bonuses); plus (minus)

       

      (3) to
        the
        extent Consolidated Net Income has been reduced (increased) thereby, items
        classified as non-recurring losses (gains); provided
        that
        such losses (gains) are not reasonably likely to recur within two years or
        there
        was a similar loss (gain) within the prior two years;

       

      all
        as
        determined on a consolidated basis for such Person and its Restricted
        Subsidiaries in accordance with GAAP.

       

      “Consolidated
        Interest Expense”
means,
        with respect to any Person for any period, the sum of, without
        duplication:

       

      (1) the
        aggregate of the interest expense of such Person and its Restricted Subsidiaries
        for such period determined on a consolidated basis in accordance with GAAP
        (other than interest expense with respect to Funding Indebtedness), including
        (a) any amortization of debt discount; (b) the net costs under
        Interest Swap Obligations (whether or not related to Funding Indebtedness);
        (c) all capitalized interest; and (d) the interest portion of any
        deferred payment obligation;

       

      (2) to
        the
        extent not already included in clause (1), the interest component of
        Capitalized Lease Obligations paid, accrued and/or scheduled to be paid or
        accrued by such Person and its Restricted Subsidiaries during such period
        as
        determined on a consolidated basis in accordance with GAAP; and

       

      (3) the
        amount of all dividend payments on any series of Disqualified Capital Stock
        or
        Preferred Stock of such Person (other than Preferred Stock of the Company)
        and,
        to the extent permitted under this Indenture, its Restricted Subsidiaries
        (other
        than dividends paid in Qualified Capital Stock) paid, accrued or scheduled
        to be
        paid or accrued during such period.

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

      “Consolidated
        Net Income”
means,
        with respect to any Person, for any period, the aggregate net income (or
        loss)
        of such Person and its Restricted Subsidiaries before the payment of dividends
        on Preferred Stock of such Person for such period on a consolidated basis,
        determined in accordance with GAAP; provided
        that
        there shall be excluded therefrom:

       

      (1) gains
        or
        losses from Asset Sales or abandonments or reserves relating
        thereto;

       

      (2) items
        classified as extraordinary gains or losses and direct impairment charges
        or the
        reversal of such charges on the Company’s assets;

       

      (3) the
        net
        income (but not loss) of any Restricted Subsidiary of such Person to the
        extent
        that the declaration of dividends or similar distributions by that Restricted
        Subsidiary of that income is restricted by a contract, operation of law or
        otherwise, except (x) for such restrictions permitted by clauses (b), (f),
        (g),
        (h), (i) (to the extent relating to such clause (b)) or clause (m) of Section
        4.09, whether such permitted restrictions exist on the Measurement Date or
        are
        created thereafter, and (y) to the extent distributions are actually made
        during
        such period or after such period and prior to the relevant date of
        determination;

       

      (4) the
        net
        income or loss of any other Person, other than a Consolidated Restricted
        Subsidiary of the referent Person, except:

       

      (a) to
        the
        extent (in the case of net income) of cash dividends or distributions paid
        to
        the referent Person, or to a Restricted Subsidiary of the referent Person
        (subject, however, to clause (3) above), by such other Person;
        or

       

      (b) that
        the
        referent Person’s share of any net income or loss of such other Person under the
        equity method of accounting for Affiliates shall not be excluded;

       

      (5) any
        restoration to income of any contingency reserve of an extraordinary,
        nonrecurring or unusual nature, except to the extent that provision for such
        reserve was made out of Consolidated Net Income accrued at any time following
        the Measurement Date;

       

      (6) income
        or
        loss attributable to discontinued operations (including operations disposed
        of
        during such period whether or not such operations were classified as
        discontinued);

       

      (7) any
        unrealized non-cash gains or losses or charges in respect of Hedging Obligations
        (including those resulting from the application of SFAS 133);

       

      (8) any
        non-cash compensation charge arising from any grant of stock, stock options
        or
        other equity-based awards; provided
        that the
        proceeds resulting from any such grant will be excluded from clause (iii)(v)
        of
        the first paragraph of Section 4.07; and

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

      (9) the
        cumulative effect of a change in accounting principles (effected either through
        cumulative effect adjustment or a retroactive application, in each case,
        in
        accordance with GAAP).

       

      “Consolidated
        Net Worth”
of
        any
        Person means the consolidated stockholders’ equity of such Person, as of the
        specified date (in the case of Section 4.08) or otherwise as of the end of
        the
        last completed fiscal quarter ending on or prior to the date of the transaction
        giving rise to the need to calculate Consolidated Net Worth for which internal
        financial statements are available, determined on a consolidated basis in
        accordance with GAAP, less (without duplication) amounts attributable to
        Disqualified Capital Stock of such Person and interests in such Person’s
        Consolidated Restricted Subsidiaries not owned, directly or indirectly, by
        such
        Person, as of such date.

       

      “Consolidated
        Non-Funding Indebtedness Interest Coverage Ratio”
means,
        with respect to any Person, the ratio of (i) Consolidated EBITDA of such
        Person
        during the four full fiscal quarters (the “Four
        Quarter Period”)
        ended
        most recently prior to the date of the transaction giving rise to the need
        to
        calculate the Consolidated Non-Funding Indebtedness Interest Coverage Ratio
        (the
“Transaction
        Date”)
        for
        which internal financial statements are available to (ii) Consolidated Interest
        Expense of such Person for the Four Quarter Period. In addition to the
        foregoing, for purposes of this definition, “Consolidated EBITDA” and
“Consolidated Interest Expense” shall be calculated after giving effect on a
pro
        forma
        basis
        for the period of such calculation to:

       

      (1) the
        incurrence or repayment of any Non-Funding Indebtedness of such Person or
        any of
        its Restricted Subsidiaries (and the application of the proceeds thereof)
        giving
        rise to the need to make such calculation and any incurrence or repayment
        of
        other Non-Funding Indebtedness (and the application of the proceeds thereof),
        other than (i) the incurrence or repayment of Non-Funding Indebtedness in
        the
        ordinary course of business for working capital purposes pursuant to working
        capital facilities, occurring during the Four Quarter Period or at any time
        subsequent to the last day of the Four Quarter Period and on or prior to
        the
        Transaction Date and (ii) the incurrence of Permitted Indebtedness on (but
        not
        prior to) the Transaction Date, in each case as if such incurrence or repayment,
        as the case may be (and the application of the proceeds thereof), occurred
        on
        the first day of the Four Quarter Period; and

       

      (2) any
        Asset
        Sales or Asset Acquisitions (including any Asset Acquisition giving rise
        to the
        need to make such calculation as a result of such Person or one of its
        Restricted Subsidiaries (including any Person who becomes a Restricted
        Subsidiary as a result of the Asset Acquisition) incurring, assuming or
        otherwise being liable for Acquired Indebtedness and also including any
        Consolidated EBITDA (including any pro
        forma
        expense
        and cost reductions determined in good faith by the Board of Directors to
        be
        (x) reasonably expected to be realized within six months of the Asset
        Acquisition; provided
        that if
        such expense or cost reductions are not actually achieved within such six
        month
        period, only the amount actually realized shall be taken in to account after
        such six month period or (y) calculated on a basis consistent with
        Regulation S-X under the Exchange Act) attributable to the assets which are
        the subject of the Asset Acquisition or

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

      Asset
        Sale during the Four Quarter Period) occurring during the Four Quarter Period
        or
        at any time subsequent to the last day of the Four Quarter Period and on
        or
        prior to the Transaction Date, as if such Asset Sale or Asset Acquisition
        (including the incurrence, assumption or liability for any such Acquired
        Indebtedness) occurred on the first day of the Four Quarter Period.

       

      If
        such
        Person or any of its Restricted Subsidiaries directly or indirectly guarantees
        Indebtedness of a third Person, the preceding sentence shall give effect
        to the
        incurrence of such guaranteed Indebtedness as if such Person or any Restricted
        Subsidiary of such Person had directly incurred or otherwise assumed such
        guaranteed Indebtedness.

       

      Furthermore,
        in calculating “Consolidated Interest Expense” for purposes of determining the
        denominator of this “Consolidated Non-Funding Indebtedness Interest Coverage
        Ratio”:

       

      (1) interest
        on outstanding Indebtedness determined on a fluctuating basis as of the
        Transaction Date and which will continue to be so determined thereafter shall
        be
        deemed to have accrued at a fixed rate per annum equal to the rate of interest
        on such Indebtedness in effect on the Transaction Date; and 

       

      (2) notwithstanding
        clause (1) above, interest on Indebtedness determined on a fluctuating
        basis, to the extent such interest is covered by agreements relating to Interest
        Swap Obligations, shall be deemed to accrue at the rate per annum resulting
        after giving effect to the operation of such agreements.

       

      “Consolidated
        Restricted Subsidiary”
means,
        with respect to any Person, a Restricted Subsidiary of such Person, the
        financial statements of which are consolidated with the financial statements
        of
        such Person in accordance with GAAP.

       

      “Consolidated
        Tangible Net Worth”
of
        any
        Person means the Consolidated Net Worth of such Person, excluding goodwill
        as of
        the date used to calculate Consolidated Net Worth.

       

      “Corporate
        Trust Office of the Trustee”
shall
        be at the address of the Trustee specified in Section 11.02 or such other
        address as to which the Trustee may give notice to the Company.

       

      “Credit
        Enhancement Agreements”
means,
        collectively, any documents, instruments, guarantees or agreements entered
        into
        by the Company or any of its Restricted Subsidiaries for the purpose of
        providing credit support (that is reasonably customary as determined by Company
        senior management) with respect to any Funding Indebtedness.

       

      “Currency
        Agreement”
means
        any foreign exchange contract, currency swap agreement, future contract,
        options
        on future contracts or other similar agreement or arrangement designed to
        protect the Company or any Restricted Subsidiary of the Company against
        fluctuations in currency values.

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

      “Default”
means
        an event or condition the occurrence of which is, or with the lapse of time
        or
        the giving of notice or both would be, an Event of Default.

       

      “Definitive
        Note”
means
        a
        certificated Note registered in the name of the Holder thereof and issued
        in
        accordance with Section 2.06, substantially in the form of Exhibit A
        hereto, except that such Note shall not bear the Global Note Legend and shall
        not have the “Schedule of Exchanges of Interests in the Global Note” attached
        thereto.

       

      “Depositary”
means,
        with respect to the Global Notes, the Person specified in Section 2.03 as
        the Depositary with respect to the Notes, and any and all successors thereto
        appointed as depositary hereunder and having become such pursuant to the
        applicable provision of this Indenture.

       

      “Disqualified
        Capital Stock”
means
        that portion of any Capital Stock that, by its terms (or by the terms of
        any
        security into which it is convertible or for which it is exchangeable at
        the
        option of the holder thereof), or upon the happening of any event (other
        than an
        event which would constitute a Change of Control), matures or is mandatorily
        redeemable, pursuant to a sinking fund obligation or otherwise, or is redeemable
        at the sole option of the holder thereof (except, in each case, upon the
        occurrence of a Change of Control) on or prior to the final maturity date
        of the
        Notes.

       

      “Domestic
        Restricted Subsidiary”
means
        a
        Restricted Subsidiary incorporated or otherwise organized or existing under
        the
        laws of the United States, any state thereof or any territory or possession
        of
        the United States.

       

      “Equity
        Offering”
means
        an underwritten public offering of Qualified Capital Stock of the Company
        pursuant to a registration statement filed with the SEC in accordance with
        the
        Securities Act.

       

      “Euroclear”
means
        Morgan Guaranty Trust Company of New York, Brussels office, as operator of
        the
        Euroclear system.

       

      “Excess
        Cash Flow”
means,
        for any Excess Cash Flow Period, net income (or loss) of the Taxable REIT
        Subsidiaries calculated on a consolidated basis in accordance with GAAP
plus,
        in each
        case to the extent subtracted in calculating such net income and without
        duplication, the sum of the following, in each case for such Excess Cash
        Flow
        Period (except to the extent otherwise expressly provided) and determined
        for
        the Taxable REIT Subsidiaries on a consolidated basis in accordance with
        GAAP:

       

      (a) provision
        for mortgage loan losses;

       

      (b) Consolidated
        Depreciation of Fixed Assets;

       

      (c) any
        unrealized non-cash losses or charges in respect of Hedging Obligations
        (including those resulting from the application of SFAS 133);

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

      (d) non-cash
        losses from the sale, conveyance, transfer or other disposition of loans
        and
        other mortgage-related receivables (including Servicing Receivables, Mortgage
        Servicing Rights, Residual Interests and net interest margin
        securities);

       

      (e) if
        deducted in calculating net income of the Taxable REIT Subsidiaries, the
        cumulative effect of a change in accounting principles (effected either through
        cumulative effect adjustment or a retroactive application);

       

      (f) any
        non-cash compensation charge arising from any grant of stock, stock options
        or
        other equity-based awards;

       

      (g) the
        amount of any non-cash severance or restructuring charge or
        reserve;

       

      (h) all
        income taxes, franchise and similar taxes of the Taxable REIT Subsidiaries
        paid
        or accrued in accordance with GAAP; and

       

      (i) amortization
        expense, including the amortization of Mortgage Servicing Rights and
        amortization of deferred financing costs, but excluding (x) amortization
        of loan
        origination and acquisition costs and (y) amortization of deferred financing
        costs related to Funding Indebtedness;

       

      minus
        in each
        case to the extent not subtracted in calculating net income and without
        duplication, the sum of the following, in each case for such Excess Cash
        Flow
        Period (except to the extent otherwise expressly provided) and determined
        for
        the Taxable REIT Subsidiaries on a consolidated basis in accordance with
        GAAP:

       

      (i)any
        unrealized non-cash gains in respect of Hedging Obligations (including those
        resulting from the application of SFAS 133);

       

      (ii)non-cash
        gains from the sale, conveyance, transfer or other disposition of loans and
        other mortgage-related receivables (including Servicing Receivables, Mortgage
        Servicing Rights, Residual Interests and net interest margin
        securities);

       

      (iii)if
        an
        addition in calculating net income of the Taxable REIT Subsidiaries, the
        cumulative effect of a change in accounting principles (effected either through
        cumulative effect adjustment or a retroactive application, in each case,
        in
        accordance with GAAP);

       

      (iv)(x)
        the
        value of Receivables (including Servicing Receivables, Residual Interests
        and
        net interest margin securities, but excluding Mortgage Servicing Rights)
        acquired during such Excess Cash Flow Period less the aggregate principal
        amount
        of Indebtedness incurred solely to finance such acquisitions and (y) the
        value
        of Receivables (including Servicing Receivables, Residual Interests and net
        interest margin securities, but excluding Mortgage Servicing Rights) that
        the
        Taxable REIT Subsidiaries have become contractually obligated during such
        Excess
        Cash Flow Period to acquire within 90 days after the last day of such Excess
        Cash Flow Period less the aggregate principal

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

      amount
        of
        Indebtedness senior management of the Company expects, in its good faith
        judgment, to incur solely to finance such acquisitions;

       

      (v)(x)
        the
        value of Mortgage Servicing Rights acquired during such Excess Cash Flow
        Period
        less the aggregate principal amount of Indebtedness incurred solely to finance
        such acquisitions and (y) the value of Mortgage Servicing Rights that the
        Taxable REIT Subsidiaries have become contractually obligated during such
        Excess
        Cash Flow Period to acquire within 90 days after the last day of such Excess
        Cash Flow Period less the aggregate principal amount of Indebtedness senior
        management of the Company expects, in its good faith judgment, to incur solely
        to finance such acquisitions;

       

      (vi)(x)
        capital expenditures made during such Excess Cash Flow Period less the proceeds
        received during such Excess Cash Flow Period of any Indebtedness incurred
        to
        finance such capital expenditures and (y) the amount of capital expenditures
        that the Taxable REIT Subsidiaries have become contractually obligated during
        such Excess Cash Flow Period to make within 90 days after the last day of
        such
        Excess Cash Flow Period less the aggregate principal amount of Indebtedness
        senior management of the Company expects, in its good faith judgment, to
        incur
        solely to finance such capital expenditures;

       

      (vii)all
        income taxes, franchise and similar taxes of the Taxable REIT Subsidiaries
        paid
        in cash during such Excess Cash Flow Period;

       

      (viii)amounts
        paid (including by way of funding any intercompany Indebtedness) to the Company
        or any of its Subsidiaries that are qualified REIT subsidiaries which, in
        the
        good faith judgment of senior management of the Company, were used or will
        be
        used within 90 days after the last day of such Excess Cash Flow Period to
        (x)
        make interest payments on the Notes or (y) make the dividends or distributions
        referred to in clause (5) of the second paragraph of Section 4.07; provided
        that to
        the extent such dividends or distributions are to be made within 90 days
        after
        the last day of such Excess Cash Flow Period, such dividends or distributions
        shall have been declared during such Excess Cash Flow Period;

       

      (ix)the
        amount of Investments made pursuant to (A) clause (1) of the definition of
        Permitted Investments in a Person that becomes a Restricted Subsidiary as
        a
        result of such Investment, or (B) clause (2) of the definition of Permitted
        Investments, in each case except and solely to the extent that such Investment
        is funded with non-cash consideration or the cash proceeds from the incurrence
        of Indebtedness or the issuance of Capital Stock; and

       

      (x)the
        amount used to repurchase or otherwise redeem Notes pursuant to Section 3.07(2),
        4.11, 4.16 or 4.17 in each case solely to the extent that such repurchases
        or
        redemptions are not financed with the cash proceeds from the incurrence of
        Indebtedness or the issuance of Capital Stock.

       

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

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

      “Exchange
        Notes”
means
        Notes containing terms substantially identical to the Initial Notes or any
        Initial Additional Notes (except that (i) such Exchange Notes shall not
        contain terms with respect to transfer restrictions and shall be registered
        under the Securities Act and (ii) certain provisions relating to an
        increase in the stated rate of interest thereon shall be eliminated), that
        are
        issued and exchanged for (a) the Initial Notes, as provided for in the
        Registration Rights Agreement relating to such Initial Notes and this Indenture
        or (b) such Initial Additional Notes, as may be provided in any
        Registration Rights Agreement relating to such Initial Additional Notes and
        this
        Indenture (including any amendment or supplement thereto).

       

      “Excluded
        Subsidiary”
means
        Saxon Securities and Certificates, Inc., a Maryland corporation, and TRS
        Securities and Certificates, Inc., a Maryland corporation, and any other
        bankruptcy remote subsidiaries principally engaged in holding Residual
        Interests.

       

      “Fair
        Market Value”
means,
        with respect to any asset or property, the price which could be negotiated
        in an
        arm’s-length, free market transaction, for cash, between a willing seller and
        a
        willing and able buyer, neither of whom is under undue pressure or compulsion
        to
        complete the transaction. Other than with respect to the Intangible Valuation
        Report, Fair Market Value shall be determined by the senior management of
        the
        Company when the fair market value of any asset other than cash is estimated
        in
        good faith to be below $20.0 million and by the Board of Directors acting
        reasonably and in good faith in each other case in which case Fair Market
        Value
        shall be evidenced by a Board Resolution of the Board of Directors delivered to
        the Trustee.

       

      "Four
        Quarter Period"
        has the
        meaning ascribed to such term in the definition of Consolidated Non-Funding
        Indebtedness Interest Coverage Ratio.

       

      “Funding
        Indebtedness”
means
        (i) any Permitted Warehouse Indebtedness and any Permitted Securitization
        Indebtedness of the Company or any of its Restricted Subsidiaries, (ii) any
        Residual or Servicing Interests Funding Indebtedness and (iii) any Indebtedness
        Refinancing any of the Indebtedness under clause (i) or (ii) and advanced
        to the
        Company or any of its Restricted Subsidiaries based upon, and secured by,
        Receivables, REO Assets, Residual or Servicing Interests or net interest
        margin
        securities; provided,
        however
        that the
        excess (determined as of the most recent date for which internal financial
        statements are available), if any, of (x) the amount of any Indebtedness
        advanced in accordance with this clause (iii) for which the holder thereof
        has
        contractual recourse to the Company or its Restricted Subsidiaries to satisfy
        claims with respect thereto over (y) the aggregate (without duplication of
        amounts) Realizable Value of the assets which secure such Indebtedness shall
        not
        be Funding Indebtedness (but shall not be deemed to be a new incurrence of
        Non-Funding Indebtedness except with respect to, and solely to the extent
        of,
        any such excess that exists upon the initial incurrence of such Indebtedness
        advanced under this clause (iii)). The amount of any Funding Indebtedness
        shall
        be determined in accordance with the definition of “Indebtedness.”

       

      “GAAP”
means
        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
        may be approved by a significant segment of the accounting profession of
        the
        United States, which are in effect from time to time.

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

      “Global
        Note Legend”
means
        the legend set forth in Section 2.06(f)(ii), which is required to be placed
        on all Global Notes issued under this Indenture.

       

      “Global
        Notes”
means,
        individually and collectively, each of the Restricted Global Notes and the
        Unrestricted Global Notes.

       

      “Government
        Securities”
means
        direct obligations of, or obligations guaranteed by, the United States of
        America, and the payment for which the United States pledges its full faith
        and
        credit.

       

      “Guarantee”
means
        a
        guarantee of the Notes by a Guarantor.

       

      “Guarantor”
means
        (1) each of the Company’s Domestic Restricted Subsidiaries in existence on the
        Measurement Date (other than Securitization Vehicles and Excluded Subsidiaries)
        and (2) each of the Company’s Domestic Restricted Subsidiaries (other than
        Securitization Vehicles and Excluded Subsidiaries) that in the future executes
        a
        supplemental indenture in which such Restricted Subsidiary agrees to be bound
        by
        the terms of this Indenture as a Guarantor in accordance with the terms of
        this
        Indenture; provided
        that any
        Person constituting a Guarantor as described above shall cease to constitute
        a
        Guarantor when its respective Guarantee is released in accordance with the
        terms
        of this Indenture.

       

      “Hedging
        Obligations”
means,
        with respect to any Person, the Obligations of such Person under any Interest
        Swap Obligations, Currency Agreements or similar agreements providing for
        the
        transfer or mitigation of interest rate or currency risks either generally
        or
        under specific contingencies.

       

      “Holder”
means
        a
        holder of the Notes.

       

      “IAI
        Global Note”
means
        a
        global note substantially in the form of Exhibit A hereto bearing the
        Global Note Legend and the Private Placement Legend and deposited with or
        on
        behalf of, and registered in the name of, the Depositary or its nominee that
        will be issued (or the principal amount of which will be increased) in
        connection with a transfer to Accredited Investors pursuant to Section
        2.06(c).

       

      “Indebtedness”
means
        with respect to any Person, without duplication:

       

      (1) all
        Obligations of such Person for borrowed money;

       

      (2) all
        Obligations of such Person evidenced by bonds, debentures, notes or other
        similar instruments;

       

      (3) all
        Capitalized Lease Obligations of such Person;

       

      (4) all
        Obligations of such Person issued or assumed as the deferred purchase price
        of
        property, all conditional sale obligations and all Obligations under any
        title
        retention agreement (but excluding trade accounts payable and other accrued
        liabilities arising in the ordinary course of business that are not overdue
        by
        90 days or more or are being

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

      contested
        in good faith by appropriate proceedings promptly instituted and diligently
        conducted);

       

      (5) all
        Obligations for the reimbursement of any obligor on any letter of credit,
        banker’s acceptance or similar credit transaction (other than obligations with
        respect to letters of credit (other than obligations described in clauses
        (1),
        (2) and (4) above) securing obligations entered into in the ordinary course
        of
        business of such Person to the extent such letters of credit are not drawn
        upon
        or, if and to the extent drawn upon, such drawing is reimbursed no later
        than
        the tenth business day following payment on the letter of credit);

       

      (6) guarantees
        and other contingent obligations in respect of Indebtedness referred to in
        clauses (1) through (5) above and clause (8) below;

       

      (7) all
        Obligations of any other Person of the type referred to in clauses (1)
        through (6) above which are secured by any Lien on any property or asset
        of the
        first Person, the amount of such Obligation being deemed to be the lesser
        of the
        Fair Market Value of such property or asset and the amount of the Obligation
        so
        secured;

       

      (8) all
        Obligations under Currency Agreements and Interest Swap Obligations of such
        Person; and

       

      (9) all
        Disqualified Capital Stock issued by such Person and all Preferred Stock
        issued
        by a Subsidiary of such Person with the amount of Indebtedness represented
        by
        such Disqualified Capital Stock or Preferred Stock being equal to the greater
        of
        its voluntary or involuntary liquidation preference and its maximum fixed
        repurchase price, but excluding accrued dividends, if any.

       

      For
        purposes hereof, the “maximum fixed repurchase price” of any Disqualified
        Capital Stock or Preferred Stock which does not have a fixed repurchase price
        shall be calculated in accordance with the terms of such Disqualified Capital
        Stock or Preferred Stock as if such Disqualified Capital Stock or Preferred
        Stock were purchased on any date on which Indebtedness shall be required
        to be
        determined pursuant to this Indenture, and if such price is based upon, or
        measured by, the Fair Market Value of such Disqualified Capital Stock or
        Preferred Stock.

       

      Except
        as
        otherwise expressly provided in this definition or in the definition of
“Capitalized Lease Obligation,” the amount of any Indebtedness outstanding as of
        any date shall be:

       

      (1) with
        respect to contingent obligations, the maximum liability upon the occurrence
        of
        the contingency giving rise to the obligation;

       

      (2) with
        respect to any Hedging Obligation, the net amount payable if such Hedging
        Obligation terminated at that time due to default by such Person;

       

      (3) the
        accreted value thereof, in the case of any Indebtedness issued at a discount
        to
        par; or

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

      (4) except
        as
        provided above, the principal amount or liquidation preference thereof, in
        the
        case of any other Indebtedness.

       

      “Indenture”
means
        this Indenture, as amended or supplemented from time to time.

       

      “Initial
        Additional Notes”
means
        Additional Notes issued in an offering not registered under the Securities
        Act.

       

      “Initial
        Notes”
means
        the Notes issued on the Measurement Date (and any Notes issued in respect
        thereof pursuant to Section 2.06, 2.07, 2.10, 3.06, 3.09, 4.11, 4.16, 4.17
        or 9.05).

       

      “Intangible
        Valuation Report”
means
        a
        report by an independent investment banking, appraisal or accounting firm,
        in
        each case of national standing in the Company’s industry, providing an opinion
        as to the Fair Market Value of Residual Interests or Mortgage Servicing Rights,
        in each case that are not required to appear on the Company’s consolidated
        balance sheet in accordance with GAAP.

       

      “Interest
        Swap Obligations”
means
        the obligations of any Person pursuant to any arrangement with any other
        Person,
        whereby, directly or indirectly, such Person is entitled to receive from
        time to
        time periodic payments calculated by applying either a floating or a fixed
        rate
        of interest on a stated notional amount in exchange for periodic payments
        made
        by such other Person calculated by applying a fixed or a floating rate of
        interest on the same notional amount and shall include interest rate swaps,
        caps, floors, collars and similar agreements, “interest only” mortgage
        derivative assets or other mortgage derivative products, futures contracts
        and
        options on futures contracts on the Eurodollar, Federal Funds, Treasury bills
        and Treasury rates and similar financial instruments, but shall exclude forward
        loan sales.

       

      “Investment”
means,
        with respect to any Person, any direct or indirect loan or other extension
        of
        credit (including a guarantee) or capital contribution to (by means of any
        transfer of cash or other property to others or any payment for property
        or
        services for the account or use of others), or any purchase or acquisition
        by
        such Person of any Capital Stock, bonds, notes, debentures or other securities
        or evidences of Indebtedness issued by, any Person. “Investment” shall exclude
        extensions of trade credit by the Company and its Restricted Subsidiaries
        on
        commercially reasonable terms in accordance with normal trade practices of
        the
        Company or such Restricted Subsidiary, as the case may be.

       

      “Investment
        Grade”
means
        a
        rating of the Notes by both S&P and Moody’s, each such rating being one of
        such agency’s four highest generic rating categories that signifies investment
        grade (i.e.,
        BBB-
        (or the equivalent) or higher by S&P and Baa3 (or the equivalent) or higher
        by Moody’s); provided,
        in each
        case, such ratings are publicly available; provided,
        further,
        that in
        the event Moody’s or S&P is no longer in existence for purposes of
        determining whether the Notes are rated “Investment Grade,” such organization
        may be replaced by a nationally recognized statistical rating organization
        (as
        defined in Rule 436 under the Securities Act) designated by the Company,
        notice
        of which shall be given to the Trustee.

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

      “Legal
        Holiday”
means
        a
        Saturday, a Sunday or a day on which commercial banking institutions in New
        York
        State or The City of New York or at a place of payment are authorized 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
        on such
        payment for the intervening period.

       

      “Lien”
means
        any lien, mortgage, deed of trust, pledge, security interest, charge or
        encumbrance of any kind (including any conditional sale or other title retention
        agreement or any lease in the nature thereof).

       

      “Measurement
        Date”
means
        May 4, 2006.

       

      “Moody’s”
means
        Moody’s Investors Service, Inc. or any successor to the rating agency business
        thereof.

       

      “Mortgage
        Servicing Rights”
means,
        with respect to any Person, the mortgage servicing rights of such Person
        and its
        Restricted Subsidiaries that are either (a) capitalized on such Person’s
        consolidated balance sheet or (b) not required to appear on such Person’s
        consolidated balances sheet, in each case as of the most recent date for
        which
        internal financial statements are available, determined in accordance with
        GAAP.

       

      “MSR
        Advances”
means
        advances made to the Company or any of its Restricted Subsidiaries under
        a
        Warehouse Facility to finance the purchase of, and that are secured by, Mortgage
        Servicing Rights.

       

      “Net
        Cash Proceeds”
means,
        with respect to any Asset Sale, the proceeds in the form of cash or Cash
        Equivalents including payments in respect of deferred payment obligations
        when
        received in the form of cash or Cash Equivalents (other than the portion
        of any
        such deferred payment constituting interest) received by the Company or any
        of
        its Restricted Subsidiaries from such Asset Sale net of:

       

      (1) out-of-pocket
        expenses and fees relating to such Asset Sale (including legal, accounting
        and
        investment banking fees and sales commissions);

       

      (2) taxes
        paid or payable after taking into account any reduction in consolidated tax
        liability due to available tax credits or deductions and any tax sharing
        arrangements;

       

      (3) repayment
        of Indebtedness that is secured by the property or assets that are the subject
        of such Asset Sale;

       

      (4) appropriate
        amounts to be provided by the Company or any Restricted Subsidiary, as the
        case
        may be, as a reserve, in accordance with GAAP, against any liabilities
        associated with such Asset Sale and retained by the Company or any Restricted
        Subsidiary, as the case may be, after such Asset Sale, including pension
        and
        other post

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

      employment
        benefit liabilities, liabilities related to environmental matters and
        liabilities under any indemnification obligations associated with such Asset
        Sale; and

       

      (5) all
        distributions and other payments required to be made to minority interest
        holders in Subsidiaries or joint ventures as a result of such Asset
        Sale.

       

      “Net
        Interest Margin Securitizations”
means
        any funding arrangement pursuant to which advances are made to the Company
        or
        any of its Restricted Subsidiaries in exchange for or secured by net interest
        margin securities or other similar direct or indirect interests in
        Securitization Vehicles.

       

      “Non-Funding
        Credit Facilities”
means,
        with respect to the Company or any of its Restricted Subsidiaries, one or
        more
        debt facilities with banks or other institutional lenders providing for
        revolving credit loans, term loans, or letters of credit or other credit
        facilities; provided
        that in
        no event will any such facility that constitutes a Warehouse Facility be
        deemed
        to qualify as a Non-Funding Credit Facility.

       

      “Non-Funding
        Indebtedness”
means
        all Indebtedness of the Company and its Restricted Subsidiaries (other than
        Funding Indebtedness). The amount of any Non-Funding Indebtedness shall be
        determined in accordance with the definition of “Indebtedness.”

       

      “Note”
or
        “Notes”
means
        the Initial Notes, any Additional Notes and the Exchange Notes.

       

      “Note
        Custodian”
means
        the Trustee when serving as custodian for the Depositary with respect to
        the
        Global Notes, or any successor entity thereto.

       

      “Obligations”
means
        all obligations for principal, premium, interest, penalties, fees,
        indemnification, reimbursements, damages and other liabilities payable under
        the
        documentation governing any Indebtedness.

       

      “Officer”
means,
        with respect to any Person, the Chairman of the Board, the Chief Executive
        Officer, the President, the Chief Operating Officer, the Chief Financial
        Officer, the Treasurer, any Assistant Treasurer, the Controller, the Secretary
        or any Executive Vice President, Senior Vice President or Vice President
        of such
        Person.

       

      “Officers’
        Certificate”
means
        a
        certificate signed on behalf of the Company by two Officers of the Company,
        one
        of whom must be the principal executive officer, the chief financial officer
        or
        the treasurer of the Company, that meets the requirements of
        Section 11.05.

       

      “Opinion
        of Counsel”
means
        an opinion from legal counsel that meets the requirements of Section 11.05.
        The counsel may be an employee of or counsel to the Company or any Subsidiary
        of
        the Company. 

       

      “Other
        Global Note”
means
        a
        global note substantially in the form of Exhibit A hereto bearing the
        Global Note Legend and the Private Placement Legend and deposited with or
        on
        behalf of, and registered in the name of, the Depositary or its nominee that
        will be issued (or

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

      the
        principal amount of which will be increased) in connection with a transfer
        pursuant to Section 2.16(e).

       

      “Pari
        Passu Indebtedness”
means
        any Indebtedness of the Company or any Guarantor that ranks equally in right
        of
        payment with the Notes or the Guarantee of such Guarantor, as
        applicable.

       

      “Participant”
means,
        with respect to the Depositary, Euroclear or Clearstream, a Person who has
        an
        account with the Depositary, Euroclear or Clearstream, respectively (and,
        with
        respect to DTC, shall include Euroclear and Clearstream).

       

      “Permitted
        Indebtedness”
means,
        without duplication, each of the following:

       

      (1) Indebtedness
        under the Notes issued on the Measurement Date and the related Guarantees
        and
        Notes issued in exchange for such Notes and the related Guarantees in accordance
        with the Registration Rights Agreement;

       

      (2) Non-Funding
        Indebtedness of the Company and its Restricted Subsidiaries outstanding on
        the
        Measurement Date (other than Indebtedness described in clause (1)) reduced
        by
        the amount of any scheduled amortization payments or mandatory prepayments
        when
        actually paid or permanent reductions thereon;

       

      (3) Hedging
        Obligations of the Company or any of its Restricted Subsidiaries; provided,
        however,
        that
        such Hedging Obligations are entered into for good faith hedging and not
        entered
        into for speculative purposes;

       

      (4) Indebtedness
        of a Restricted Subsidiary of the Company to the Company or to a Restricted
        Subsidiary of the Company for so long as such Indebtedness is held by the
        Company or a Restricted Subsidiary of the Company; provided
        that:
        (a) any Indebtedness of a Restricted Subsidiary that is a Guarantor to any
        other Restricted Subsidiary of the Company that is not a Guarantor is unsecured
        and subordinated, pursuant to a written agreement, to such Guarantor’s
        obligations under this Indenture and the Notes; and (b) if as of any date
        any Person other than the Company or a Restricted Subsidiary of the Company
        owns
        or holds, directly or indirectly, any such Indebtedness, such date shall
        be
        deemed the incurrence by the Company of Indebtedness not constituting Permitted
        Indebtedness under this clause (4);

       

      (5) Indebtedness
        of the Company to a Restricted Subsidiary of the Company for so long as such
        Indebtedness is held by a Restricted Subsidiary of the Company; provided
        that:
        (a) any Indebtedness of the Company to any Restricted Subsidiary of the
        Company that is not a Guarantor is unsecured and subordinated, pursuant to
        a
        written agreement, to the Company’s obligations under this Indenture and the
        Notes; and (b) if as of any date any Person other than a Restricted
        Subsidiary of the Company owns or holds, directly or indirectly, any such
        Indebtedness, such date shall be deemed the incurrence by the Company of
        Indebtedness not constituting Permitted Indebtedness under this clause
        (5);

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

      (6) Indebtedness
        arising from the honoring by a bank or other financial institution of a check,
        draft or similar instrument inadvertently (except in the case of daylight
        overdrafts) drawn against insufficient funds in the ordinary course of business;
        provided,
        however,
        that
        such Indebtedness is extinguished within two business days of
        incurrence;

       

      (7) Indebtedness
        of the Company or any of its Restricted Subsidiaries represented by letters
        of
        credit for the account of the Company or such Restricted Subsidiary, as the
        case
        may be, in order to provide security for workers’ compensation claims, payment
        obligations in connection with self-insurance or similar requirements in
        the
        ordinary course of business;

       

      (8) Refinancing
        Indebtedness;

       

      (9) Funding
        Indebtedness;

       

      (10) to
        the
        extent otherwise constituting Indebtedness, obligations arising from agreements
        providing for indemnification, adjustment of purchase price or similar
        obligations, in each case, incurred or assumed in connection with the
        disposition of Receivables, Residual Interests or other receivables in the
        ordinary course of business;

       

      (11) Standard
        Securitization Undertakings and Credit Enhancement Agreements relating to
        any
        Securitization; 

       

      (12) Guarantees
        by the Company and its Restricted Subsidiaries of Indebtedness that is otherwise
        Permitted Indebtedness; and 

       

      (13) Indebtedness
        of the Company and its Restricted Subsidiaries in an aggregate principal
        amount
        not to exceed $35.0 million at any one time outstanding.

       

      “Permitted
        Investments”
means
        an Investment by the Company or any Restricted Subsidiary of the Company
        in:

       

      (1) a
        Restricted Subsidiary of the Company or a Person that will, upon the making
        of
        such Investment, become a Restricted Subsidiary of the Company;

       

      (2) another
        Person, if as a result of such Investment, such other Person is merged or
        consolidated with or into, or transfers or conveys all or substantially all
        its
        assets to, a Restricted Subsidiary of the Company;

       

      (3) cash
        and
        Cash Equivalents;

       

      (4) receivables
        owing to the Company or any Restricted Subsidiary if created or acquired
        in the
        ordinary course of business and payable or dischargeable in accordance with
        customary trade terms; provided,
        however,
        that
        such trade terms may include such concessionary trade terms as the Company
        or
        any Restricted Subsidiary deems reasonable under the circumstances;

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

      (5) payroll,
        travel and similar advances to cover matters that are expected at the time
        of
        such advances ultimately to be treated as expenses for accounting purposes
        and
        that are made in the ordinary course of business;

       

      (6) loans
        or
        advances to employees made in the ordinary course of business consistent
        with
        past practices of the Company or such Restricted Subsidiary not to exceed
        $2.0
        million at the time of such Investment;

       

      (7) stock,
        obligations or securities received in settlement of debts created in the
        ordinary course of business and owing to the Company or any Restricted
        Subsidiary of the Company or in satisfaction of judgments;

       

      (8) any
        Person to the extent such Investment represents the non-cash portion of the
        consideration received for (A) an Asset Sale as permitted pursuant to Section
        4.11 or (B) a disposition of assets not constituting an Asset Sale;

       

      (9) Receivables,
        including Servicing Advances;

       

      (10) Residual
        or Servicing Interests, net interest margin securities, or otherwise in
        Securitization Vehicles in the ordinary course of business (including by
        way of
        transfers of Receivables to Securitization Vehicles);

       

      (11) any
        Person where such Investment was acquired by the Company or any Restricted
        Subsidiary (A) in exchange for any other Investment or accounts receivable
        held
        by the Company or any Restricted Subsidiary in connection with or as a result
        of
        a bankruptcy, workout, reorganization or recapitalization of the issuer of
        such
        other Investment or accounts receivable or (B) as a result of a foreclosure
        by
        the Company or any Restricted Subsidiary with respect to any secured Investment
        or other transfer of title with respect to any secured Investment in
        default;

       

      (12) any
        Person to the extent such Investments consist of prepaid expenses, negotiable
        instruments held for collection and lease, utility and workers’ compensation,
        performance and other similar deposits made in the ordinary course of business
        by the Company or any Restricted Subsidiary;

       

      (13) any
        Person to the extent such Investments consist of Interest Swap Obligations
        and
        Currency Agreements or similar obligations otherwise permitted under this
        Indenture;

       

      (14) any
        Person, which Investments were existing on the Measurement Date, and any
        extension, modification or renewal of any such Investments existing on the
        Measurement Date, but only to the extent not involving additional advances,
        contributions or other Investments of cash or other assets or other increases
        thereof (other than as a result of the accrual or accretion of interest or
        original issue discount or the issuance of pay-in-kind securities, in each
        case,
        pursuant to the terms of such Investment as in effect on the Measurement
        Date);
        and

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

      (15) Persons
        to the extent such Investments, when taken together with all other Investments
        made pursuant to this clause (15) outstanding on the date such Investment
        is
        made, do not exceed $25.0 million; provided
        that if
        an Investment pursuant to this clause (15) is made in any Person that is
        not a
        Restricted Subsidiary of the Company at the date of the making of the
        Investment, and such Person becomes a Restricted Subsidiary of the Company
        after
        such date, such Investment shall thereafter be deemed to have been made pursuant
        to clause (1) above and shall cease to have been made pursuant to this clause
        (15).

       

      “Permitted
        Junior Securities”
        means:

       

      (1) Capital
        Stock in the Company; or

       

      (2) unsecured
        debt securities that are subordinated to all Senior Indebtedness (and any
        debt
        securities issued in exchange for Senior Indebtedness) to substantially the
        same
        extent as, or to a greater extent than, the applicable Guarantees are
        subordinated to Senior Indebtedness under this Indenture.

       

      “Permitted
        Liens”
means,
        without duplication, each of the following:

       

      (1) Liens
        securing Non-Funding Indebtedness (other than Permitted Indebtedness that
        is not
        referenced in clauses (2), (3) of the definition thereof) incurred pursuant
        to
        Section 4.10 to the extent that after giving effect to the creation of any
        such
        Lien and the incurrence of such Non-Funding Indebtedness as of the last day
        of
        the most recently ended fiscal quarter for which internal financial statements
        are available (the “Test
        Date”)
        and
        the incurrence and repayment of any other Indebtedness (but excluding any
        Permitted Indebtedness incurred on, but not prior to, the Test Date) incurred
        after the Test Date and on or prior to the date of incurrence of such
        Non-Funding Indebtedness, the Total Unencumbered Assets of the Company and
        its
        Consolidated Restricted Subsidiaries are at least 250% of the aggregate amount
        of the Unsecured Indebtedness of the Company and its Consolidated Restricted
        Subsidiaries outstanding on a consolidated basis;

       

      (2) Liens
        for
        taxes, assessments or governmental charges or claims either: (a) not
        delinquent; or (b) contested in good faith by appropriate proceedings and
        as to which the Company or its Restricted Subsidiaries shall have set aside
        on
        its books such reserves as may be required pursuant to GAAP;

       

      (3) statutory
        Liens of landlords and Liens of carriers, warehousemen, mechanics, suppliers,
        materialmen, repairmen and other Liens imposed by law incurred in the ordinary
        course of business for sums not yet delinquent or being contested in good
        faith,
        if such reserve or other appropriate provision, if any, as shall be required
        by
        GAAP shall have been made in respect thereof;

       

      (4) Liens
        incurred or deposits made in the ordinary course of business in connection
        with
        workers’ compensation, unemployment insurance and other types of social
        security, including any Lien securing letters of credit issued in the ordinary
        course of business, or to secure the performance of tenders, statutory
        obligations, surety and appeal

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

      bonds,
        bids, leases, government contracts, performance and return-of-money bonds
        and
        other similar obligations (exclusive of obligations for the payment of borrowed
        money);

       

      (5) judgment
        Liens not giving rise to an Event of Default so long as such Lien is adequately
        bonded and any appropriate legal proceedings which may have been duly initiated
        for the review of such judgment shall not have been finally terminated or
        the
        period within which such proceedings may be initiated shall not have
        expired;

       

      (6) easements,
        rights-of-way, zoning restrictions and other similar charges or encumbrances
        in
        respect of real property not interfering in any material respect with the
        ordinary conduct of the business of the Company or any of its Restricted
        Subsidiaries;

       

      (7) any
        interest or title of a lessor under any Capitalized Lease Obligation;
provided
        that
        such Liens do not extend to any property or assets which is not leased property
        subject to such Capitalized Lease Obligation and the proceeds
        thereof;

       

      (8) Liens
        securing Purchase Money Indebtedness; provided,
        however,
        that
        (a) such Purchase Money Indebtedness shall not exceed the purchase price or
        other cost of such property or equipment and shall not be secured by any
        property or equipment of the Company or any Restricted Subsidiary of the
        Company
        other than the equipment so acquired, constructed or improved and proceeds
        thereof and (b) the Lien securing such Purchase Money Indebtedness shall be
        created within 90 days of such acquisition or completion of installation,
        construction or improvement of the relevant property or equipment;

       

      (9) Liens
        upon specific items of inventory or other goods and proceeds of any Person
        securing such Person’s obligations in respect of bankers’ acceptances issued or
        created for the account of such Person to facilitate the purchase, shipment
        or
        storage of such inventory or other goods;

       

      (10) Liens
        securing reimbursement obligations with respect to commercial letters of
        credit
        which encumber documents and other property relating to such letters of credit
        and products and proceeds thereof;

       

      (11) Liens
        encumbering deposits made to secure obligations arising from statutory,
        regulatory, contractual, or warranty requirements of the Company or any of
        its
        Restricted Subsidiaries, including rights of offset and set-off;

       

      (12) Liens
        securing Acquired Indebtedness incurred in accordance with Section 4.10;
        provided
        that
        (a) such Liens secured such Acquired Indebtedness at the time of and prior
        to the incurrence of such Acquired Indebtedness by the Company or a Restricted
        Subsidiary of the Company and were not granted in connection with, or in
        anticipation of, the incurrence of such Acquired Indebtedness by the Company
        or
        a Restricted Subsidiary of the Company; and (b) such Liens do not extend to
        or cover any property or assets of the Company or of any of its Restricted
        Subsidiaries other than the property or assets (including proceeds thereof)
        that
        secured the Acquired Indebtedness prior to the time such

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

      Indebtedness
        became Acquired Indebtedness of the Company or a Restricted Subsidiary of
        the
        Company;

       

      (13) Liens
        on
        Receivables, Residual or Servicing Interests, net interest margin securities,
        the proceeds thereof and other, related documents, records and assets (including
        REO Assets) to secure Funding Indebtedness (including under more than one
        facility);

       

      (14) Liens
        securing Hedging Obligations; and

       

      (15) Liens
        securing Permitted Indebtedness incurred under clause (13) of the definition
        thereof.

       

      “Permitted
        Securitization Indebtedness”
means
        Securitization Indebtedness; provided
        that (i)
        in connection with any Securitization, any Warehouse Indebtedness used to
        finance the purchase, origination or pooling of any Receivables subject to
        such
        Securitization is repaid in connection with such Securitization to the extent
        of
        the net proceeds received by the Company and its Restricted Subsidiaries
        from
        the applicable Securitization Vehicle, and (ii) the excess (determined as
        of the
        most recent date for which internal financial statements are available),
        if any,
        of (x) the amount of any such Securitization Indebtedness for which the holder
        thereof has contractual recourse to the Company or its Restricted Subsidiaries
        to satisfy claims with respect to such Securitization Indebtedness (excluding
        Standard Securitization Undertakings) over (y) the aggregate (without
        duplication of amounts) Realizable Value of the assets which secure such
        Securitization Indebtedness shall not be Permitted Securitization Indebtedness
        (but shall not be deemed to be a new incurrence of Non-Funding Indebtedness
        except with respect to, and solely to the extent of, any such excess that
        exists
        upon the initial incurrence of such Securitization Indebtedness).

       

      “Permitted
        Warehouse Indebtedness”
means
        Warehouse Indebtedness; provided,
        however,
        that
        the excess (determined as of the most recent date for which internal financial
        statements are available), if any, of (x) the amount of any such Warehouse
        Indebtedness for which the holder thereof has contractual recourse to the
        Company or its Restricted Subsidiaries to satisfy claims with respect to
        such
        Warehouse Indebtedness over (y) the aggregate (without duplication of amounts)
        Realizable Value of the assets which secure such Warehouse Indebtedness shall
        not be Permitted Warehouse Indebtedness (but shall not be deemed to be a
        new
        incurrence of Non-Funding Indebtedness except with respect to, and solely
        to the
        extent of, any such excess that exists upon the initial incurrence of such
        Warehouse Indebtedness).

       

      “Person”
means
        an individual, partnership, limited liability company, corporation,
        unincorporated organization, trust or joint venture, or a governmental agency
        or
        political subdivision thereof.

       

      “Preferred
        Stock,”
of
        any
        Person means any Capital Stock of such Person that has preferential rights
        to
        any other Capital Stock of such Person with respect to dividends or redemptions
        or upon liquidation.

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

      “Private
        Placement Legend”
means
        the legend set forth in Section 2.06(f)(i) to be placed on all Notes issued
        under this Indenture except where otherwise permitted by the provisions of
        this
        Indenture.

       

      “Purchase
        Money Indebtedness”
means
        Indebtedness of the Company and its Restricted Subsidiaries incurred in the
        normal course of business for the purpose of financing all or any part of
        the
        purchase price, or the cost of installation, construction or improvement,
        of
        tangible property or equipment.

       

      “QIB”
means
        a
“qualified institutional buyer” as defined in Rule 144A.

       

      “QIB
        Global Note”
means
        a
        global note substantially in the form of Exhibit A hereto bearing the
        Global Note Legend and the Private Placement Legend and deposited with or
        on
        behalf of, and registered in the name of, the Depositary or its nominee that
        will be issued in an initial denomination equal to the outstanding principal
        amount of the Initial Notes or any Initial Additional Notes, in each case
        initially sold to QIBs in reliance on Rule 144A or Section 4(2) of the
        Securities Act.

       

      “Qualified
        Capital Stock”
means
        any Capital Stock that is not Disqualified Capital Stock.

       

      “Realizable
        Value”
of
        an
        asset means (i) with respect to any REO Asset, the value realizable upon
        the
        disposition of such asset as determined by the Company in its reasonable
        discretion and consistent with customary industry practice and (ii) with
        respect
        to any other asset, the lesser of (x) the face value of such asset and (y)
        the
        market value of such asset as determined by the Company in accordance with
        the
        agreement governing the applicable Warehouse Indebtedness, Securitization
        Indebtedness or Residual or Servicing Interests Funding Indebtedness (or,
        if
        such agreement does not contain any related provision, as determined by senior
        management of the Company in good faith); provided,
        however,
        that
        the realizable value of any asset described in clause (i) or (ii) above which
        an
        unaffiliated third party has a binding contractual commitment to purchase
        from
        the Company or any of its Restricted Subsidiaries shall be the minimum price
        payable to the Company or such Restricted Subsidiary for such asset pursuant
        to
        such contractual commitment.

       

      “Receivables”
means
        loans and other mortgage-related receivables (including Servicing Receivables
        and Mortgage Servicing Rights but excluding Residual Interests and net interest
        margin securities) purchased or originated by the Company or any Restricted
        Subsidiary of the Company or, with respect to Servicing Receivables and Mortgage
        Servicing Rights, otherwise arising in the ordinary course of business;
provided,
        however,
        that
        for purposes of determining the amount of a Receivable at any time, such
        amount
        shall be determined in accordance with GAAP, consistently applied, as of
        the
        most recent practicable date.

       

      “Reference
        Date”
has
        the
        meaning ascribed to such term in Section 4.07(iii)(u) of this Indenture.
        

       

      “Refinance”
means,
        in respect of any security or Indebtedness, to refinance, extend, renew,
        refund,
        repay, prepay, redeem, defease or retire, or to issue a security or

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

      Indebteness
        in exchange or replacement for, such security or Indebtedness in whole or
        in
        part. “Refinanced”
and
        “Refinancing”
shall
        have correlative meanings.

       

      “Refinancing
        Indebtedness”
means
        any Refinancing by the Company or any Restricted Subsidiary of the Company
        of
        Indebtedness (including Permitted Indebtedness) incurred in accordance with
        the
        Section 4.10 (other than pursuant to clauses (3), (4), (5), (6), (7), (10)
        or
        (11) of the definition of Permitted Indebtedness), in each case that does
        not:

       

      (1) result
        in
        an increase in the aggregate principal amount of Indebtedness of such Person
        as
        of the date of such proposed Refinancing (plus the amount of any accrued
        interest or premium required to be paid under the terms of the instrument
        governing such Indebtedness and plus the amount of reasonable expenses incurred
        by the Company or any Restricted Subsidiary in connection with such
        Refinancing); or

       

      (2) create
        Indebtedness with (a) a Weighted Average Life to Maturity that is less than
        the Weighted Average Life to Maturity of the Indebtedness being Refinanced;
        or
        (b) a final maturity earlier than the final maturity of the Indebtedness
        being Refinanced; provided
        that
        (i) if such Indebtedness being Refinanced is Indebtedness of the Company,
        then such Refinancing Indebtedness shall be Indebtedness solely of the Company,
        (ii) if such Indebtedness being Refinanced is Indebtedness of the Company
        guaranteed by a Subsidiary, then such Refinancing Indebtedness shall be
        Indebtedness solely of the Company and such Subsidiary or any Guarantor,
        and
        (iii) if such Indebtedness being Refinanced is subordinate or junior to the
        Notes or any Guarantee, then such Refinancing Indebtedness shall be subordinate
        to the Notes or such Guarantee, as the case may be, at least to the same
        extent
        and in the same manner as the Indebtedness being Refinanced.

       

      “Registered
        Exchange Offer”
means
        an offer to exchange Initial Notes or Initial Additional Notes, if any, for
        Exchange Notes pursuant to a Registration Rights Agreement.

       

      “Registration
        Rights Agreement” means
        the
        registration rights agreement dated as of May 4, 2006 among the Company,
        the
        Guarantors and J.P. Morgan Securities Inc. and any subsequent Registration
        Rights Agreements for Exchange Notes issued hereunder.

       

      “Regulation S”
means
        Regulation S promulgated under the Securities Act.

       

      “Regulation S
        Global Note”
means
        a
        global note substantially in the form of Exhibit A hereto bearing the
        Global Note Legend and the Private Placement Legend and deposited with or
        on
        behalf of, and registered in the name of, the Depositary or its nominee that
        will be issued in an initial denomination that, when aggregated with any
        other
        Regulation S Global Notes, will equal the outstanding principal amount of
        the Initial Notes or any Initial Additional Notes, in each case, initially
        sold
        in reliance on Rule 903 of Regulation S.

       

      “REIT”
means
        any entity that qualifies as a “real estate investment trust” under Section
        856(a) of the Code.

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

      “Related
        Business”
means
        any business in which the Company or any of the Restricted Subsidiaries was
        engaged on the Measurement Date and any business activities that are the
        same,
        substantially similar, reasonably ancillary or complementary
        thereto.

       

      “REO
        Asset”
of
        a
        Person means a real estate asset owned by such Person and acquired as a result
        of the foreclosure or other enforcement of a lien on such asset securing
        a
        Receivable or Servicing Advance.

       

      “Residual
        Interests”
means
        (i) any residual interests in Securitizations, Securitization Securities,
        net
        interest margin securities or any other interests in Securitization Vehicles
        or
        (ii) the residual value of any assets that are financed through Securitization
        Indebtedness or Warehouse Indebtedness, regardless of whether required to
        appear
        on the face of the consolidated financial statements of such Person and its
        Consolidated Restricted Subsidiaries in accordance with GAAP.

       

      “Residual
        or Servicing Interests”
means
        any Mortgage Servicing Rights and any Residual Interests, in each case of
        the
        Company and its Restricted Subsidiaries.

       

      “Residual
        or Servicing Interests Funding Facility”
means
        any funding arrangement (including Securitization) with lenders under which
        advances are made to the Company or any of its Restricted Subsidiaries based
        upon Residual or Servicing Interests.

       

      “Residual
        or Servicing Interests Funding Indebtedness”
means
        any Indebtedness of the Company or any of its Restricted Subsidiaries under
        a
        Residual or Servicing Interests Funding Facility or a Net Interest Margin
        Securitization; provided
        that the
        excess (determined as of the most recent date for which internal financial
        statements are available), if any of (x) the amount of any such Residual
        or
        Servicing Interests Funding Indebtedness for which the holder thereof has
        contractual recourse (other than any Standard Securitization Undertaking)
        to the
        Company or its Restricted Subsidiaries to satisfy claims with respect to
        such
        Residual or Servicing Interests Funding Indebtedness over (y) the aggregate
        (without duplication of amounts) Realizable Value of the assets that secure
        such
        Residual or Servicing Interests Funding Indebtedness shall be deemed not
        to be
        Residual or Servicing Interests Funding Indebtedness and the portion of such
        Indebtedness that ceases to constitute Residual or Servicing Interests Funding
        Indebtedness shall be deemed outstanding Non-Funding Indebtedness (but shall
        not
        be deemed to be a new incurrence except with respect to, and solely to the
        extent of, any such excess that exists upon the initial incurrence of such
        Indebtedness under a Residual or Servicing Interests Funding Facility or
        a Net
        Interest Margin Securitization) of the Company or such Restricted Subsidiary,
        as
        the case may be, at such time.

       

      “Responsible
        Officer”
means,
        when used with respect to the Trustee, any officer assigned to the Corporate
        Trust Office of the Trustee, including any managing director, director, vice
        president, assistant vice president, assistant treasurer, or any other officer
        of the Trustee customarily performing functions similar to those performed
        by
        any of the above designated officers and having direct responsibility for
        the
        administration of this Indenture, and also, with respect to a particular
        matter,
        any other officer to whom such matter is referred because of such officer’s
        knowledge of and familiarity with the particular subject.

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

      “Restricted
        Definitive Note”
means
        a
        Definitive Note bearing the Private Placement Legend.

       

      “Restricted
        Global Note”
means
        a
        Global Note bearing the Private Placement Legend.

       

      “Restricted
        Investment”
means
        an Investment other than a Permitted Investment. 

       

      “Restricted
        Period”
means
        the relevant 40-day distribution compliance period as defined in
        Regulation S.

       

      “Restricted
        Subsidiary”
of
        a
        Person means any Subsidiary of the referent Person that is not an Unrestricted
        Subsidiary.

       

      “Reversion
        Date”
has
        the
        meaning ascribed to such term in the definition of “Suspension
        Period.”

       

      “Rule
        144”
means
        Rule 144 promulgated under the Securities Act.

       

      “Rule
        144A”
means
        Rule 144A promulgated under the Securities Act.

       

      “Rule
        903”
means
        Rule 903 promulgated under the Securities Act.

       

      “Rule
        904”
means
        Rule 904 promulgated under the Securities Act.

       

      “S&P”
means
        Standard & Poor’s Ratings Service, a division of the McGraw-Hill Companies,
        Inc., or any successor to the rating agency business thereof.

       

      “SEC”
means
        the Securities and Exchange Commission.

       

      “Secured
        Indebtedness”
means
        any Indebtedness secured by a Lien upon the property of the Company or any
        of
        its Restricted Subsidiaries (regardless of the Realizable Value of such
        property).

       

      “Securities
        Act”
means
        the Securities Act of 1933, as amended, or any successor statute or statutes
        thereto.

       

      “Securitization”
means
        a
        public or private transfer or financing of Receivables, Residual Interests
        or
        REO Assets in the ordinary course of business by which the Company or any
        of its
        Restricted Subsidiaries directly or indirectly securitizes a pool of specified
        Receivables, Residual Interests or REO Assets.

       

      “Securitization
        Indebtedness”
means
        (i) Indebtedness of the Company or any of its Restricted Subsidiaries incurred
        pursuant to on-balance sheet Securitizations treated as financings and (ii)
        any
        Indebtedness consisting of advances made to the Company or any of its Restricted
        Subsidiaries based upon securities issued by a Securitization Vehicle rating
        issued pursuant to a Securitization and acquired or retained by the Company
        or
        any of its Restricted Subsidiaries.

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

      “Securitization
        Securities”
has
        the
        meaning ascribed to such term in the definition of “Securitization
        Vehicle.”

       

      “Securitization
        Vehicle”
means
        (i) any Person (whether or not a Restricted Subsidiary of the Company)
        established for the purpose of issuing asset-backed, mortgage backed or mortgage
        pass-through securities of any kind (including collaterized mortgage obligations
        and net interest margin securities) or issuing any other Indebtedness (whether
        or not in the form of securities) backed by Receivables or Residual Interests
        (“Securitization
        Securities”)
        and
        (ii) any special purpose, bankruptcy remote Restricted Subsidiary of the
        Company
        or any of its Restricted Subsidiaries established in connection with the
        issuance of Securitization Securities including Saxon Asset Securities Company
        and any other entity (or several entities) that serves as an intermediate
        entity
        between a Restricted Subsidiary that initially purchases or originates
        Receivables or Residual Interests and an entity referred to in clause (i)
        regardless of whether such Restricted Subsidiary is an issuer of Securitization
        Securities; provided
        that
        such Person is not an obligor with respect to any Indebtedness of the Company
        or
        any Restricted Subsidiary of the Company other than under Securitization
        Securities, Standard Securitization Undertakings, Credit Enhancement Agreements
        and related Hedging Obligations, as the case may be.

       

      “Senior
        Indebtedness”
has
        the
        meaning provided in Section 13.01.

       

      “Senior
        Subordinated Indebtedness”
means,
        with respect to any Servicing Guarantor, Indebtedness that ranks equal in
        right
        of payment to the Guarantee of such Servicing Guarantor.

       

      “Servicing
        Advances”
means
        advances made by the Company or any of its Restricted Subsidiaries in its
        capacity as servicer of any mortgage-related receivables to fund principal,
        interest, escrow, foreclosure, insurance, tax or other payments or advances
        when
        the borrower on the underlying receivable is delinquent in making payments
        on
        such receivable; to enforce remedies, manage and liquidate REO Assets; or
        that
        the Company or any of its Restricted Subsidiaries otherwise advances in its
        capacity as servicer.

       

      “Servicing
        Guarantor”
means
        each Guarantor that is required by the terms of a Warehouse Facility to
        subordinate its Guarantee in right of payment to its obligations under such
        Warehouse Facility with respect to (and to the extent of) MSR
        Advances.

       

      “Servicing
        Receivables”
means
        rights to collections under mortgage-related receivables, or other rights
        to
        reimbursement of Servicing Advances that the Company or a Restricted Subsidiary
        of the Company has made in the ordinary course of business and on customary
        industry terms.

       

      “Significant
        Subsidiary”
with
        respect to any Person at any time of determination, means any Restricted
        Subsidiary of such Person that satisfies at such time of determination the
        criteria for a “Significant Subsidiary” set forth in Rule 1.02(w) of
        Regulation S-X under the Exchange Act; provided
        that
“Significant Subsidiary” shall not include any Securitization Vehicle that does
        not have outstanding any Indebtedness other than Funding Indebtedness and
        related Hedging Obligations. On the Measurement Date, Saxon Capital Holdings,
        Inc. is a Significant Subsidiary.

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

      “Special
        Interest”
means
        special or additional interest in respect of Notes that is payable by the
        Company as liquidated damages upon specified registration defaults pursuant
        to
        any Registration Rights Agreement.

       

      “Standard
        Securitization Undertakings”
means
        representations, warranties, covenants and indemnities entered into by the
        Company or a Restricted Subsidiary which are reasonably customary in a rated
        receivables securitization transaction, as determined by Company senior
        management, including recourse for matters such as fraud, misappropriation
        and
        misapplication.

       

      “Subordinated
        Indebtedness”
means
        all of the Company’s and its Restricted Subsidiaries’ Indebtedness that
        expressly provides that such Indebtedness shall be subordinated in right
        of
        payment to the Notes or the relevant Guarantees.

       

      “Subsidiary”
with
        respect to any Person at any time of determination, means:

       

      (1) any
        corporation of which the outstanding Capital Stock having at least a majority
        of
        the votes entitled to be cast in the election of directors under ordinary
        circumstances is, at such time of determination, owned, directly or indirectly,
        by such Person; or

       

      (2) any
        other
        Person of which at least a majority of the voting interest under ordinary
        circumstances is at the time, directly or indirectly, owned by such
        Person.

       

      “Suspension
        Period” means
        the
        period (a) beginning on the date that: (1) the Notes are rated Investment
        Grade;
provided
        that,
        prior to the assignment of the Investment Grade ratings, the Company has
        advised
        the applicable rating agencies that the Suspendable Covenants will not apply
        during the Suspension Period; (2) no Default or Event of Default has occurred
        and is continuing; and (3) the Company has delivered an Officers’ Certificate to
        the Trustee certifying that the conditions set forth in clauses (1) and (2)
        above are satisfied; and (b) ending on the date (the “Reversion
        Date”)
        that
        Notes are no longer rated Investment Grade.

       

      “Taxable
        REIT Subsidiary”
means
        any Restricted Subsidiary which qualifies as a “taxable REIT subsidiary”
pursuant to Section 856(l) of the Code.

       

      “Test
        Date”
has
        the
        meaning ascribed to such term in the definition of “Permitted Liens.”

       

      “TIA”
or
        “Trust
        Indenture Act”
means
        the Trust Indenture Act of 1939 (15 U.S.C. Sections 77aaa-77bbbb) as in effect
        on the date on which this Indenture is qualified under the TIA; provided,
        however,
        that in
        the event the Trust Indenture Act of 1939 is amended after such date, then
“TIA”
means, to the extent required by such amendment, the Trust Indenture Act
        of 1939
        as so amended.

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

      “Total
        Unencumbered Assets”
as
        of
        any date means the sum (without duplication) of 

       

      (a) all
        assets on the consolidated balance sheet of the Company and its Consolidated
        Restricted Subsidiaries (but excluding intangibles (it being understood that
        Residual or Servicing Interests are not intangibles for this purpose and
        that
        capitalized debt issuance costs are intangibles), any deferred tax assets
        and
        accounts receivable (other than Receivables)) plus 

       

      (b) the
        value, as stated in an Intangibles Valuation Report dated within 90 days
        of such
        date of determination of Total Unencumbered Assets, of Residual or Servicing
        Interests, in each case of the Company and its Restricted Subsidiaries that
        are
        not required to appear on the Company’s consolidated balance sheet as of such
        date and 

       

      in
        the
        case of (a) or (b), on such date either (x) not securing any portion of
        Secured Indebtedness determined on a consolidated basis in accordance with
        GAAP
        or (y) securing Funding Indebtedness, but in the case of clause (y) solely
        to the extent of the excess (determined as of the most recent date for which
        internal financial statements are available), if any, of (i) the aggregate
        (without duplication of amounts) Realizable Value of the assets which secure
        such Funding Indebtedness over (ii) the amount of any such Funding Indebtedness
        for which the holder thereof has contractual recourse to the Company or its
        Restricted Subsidiaries to satisfy claims with respect to such Funding
        Indebtedness (other than Standard Securitization Undertaking).

       

      “Transaction
        Date”
has
        the
        meaning ascribed to such term in the definition of “Consolidated Non-Funding
        Indebtedness Interest Coverage Ratio.”

       

      “Transfer
        Restricted Notes”
means
        Notes that bear or are required to bear the Private Placement
        Legend.

       

      “Treasury
        Rate”
means,
        as of any redemption date, the yield to maturity at the time of computation
        of
        United States Treasury securities with a constant maturity (as compiled and
        published in the most recent Federal Reserve Statistical Release H.15 (519)
        which has become publicly available at least two Business Days prior to the
        redemption date (or, if such Statistical Release is no longer published,
        any
        publicly available source or similar market data)) most nearly equal to the
        period from the redemption date to May 1, 2014; provided,
        however,
        that if
        the period from the redemption date to May 1, 2014 is not equal to the constant
        maturity of a United States Treasury security for which a weekly average
        yield
        is given, the Treasury Rate shall be obtained by linear interpolation
        (calculated to the nearest one-twelfth of a year) from the weekly average
        yields
        of United States Treasury securities for which such yields are given, except
        that if the period from the redemption date to May 1, 2014 is less than one
        year, the weekly average yield on actually traded United States Treasury
        securities adjusted to a constant maturity of one year shall be
        used.

       

      “Trustee”
means
        Deutsche Bank Trust Company Americas until a successor replaces Deutsche
        Bank
        Trust Company Americas in accordance with the applicable provisions of this
        Indenture and thereafter means the successor serving hereunder.

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

      “Unrestricted
        Global Note”
means
        a
        permanent global note substantially in the form of Exhibit A hereto that
        bears the Global Note Legend and that has the “Schedule of Exchanges of
        Interests in the Global Note” attached thereto, and that is deposited with or on
        behalf of and registered in the name of the Depositary, representing Notes
        that
        do not bear the Private Placement Legend.

       

      “Unrestricted
        Subsidiary”
of
        any
        Person means:

       

      (1) any
        Subsidiary of such Person that at the time of determination shall be or continue
        to be designated an Unrestricted Subsidiary by the Board of Directors of
        such
        Person in the manner provided below; and

       

      (2) any
        Subsidiary of an Unrestricted Subsidiary.

       

      The
        Board
        of Directors may designate any Restricted Subsidiary (including any newly
        acquired or newly formed Restricted Subsidiary) to be an Unrestricted Subsidiary
        unless such Restricted Subsidiary owns any Capital Stock of, or owns or holds
        any Lien on any property of, the Company or any other Restricted Subsidiary
        of
        the Company that is not a Restricted Subsidiary of the Restricted Subsidiary
        to
        be so designated; provided
        that:

       

      (1) the
        Company certifies to the Trustee that such designation complies with Section
        4.07; and

       

      (2) each
        Restricted Subsidiary to be so designated and each of its Subsidiaries has
        not
        at the time of designation, and does not thereafter, create, incur, issue,
        assume, guarantee or otherwise become directly or indirectly liable with
        respect
        to any Indebtedness pursuant to which the lender has recourse to any of the
        assets of the Company or any of its Restricted Subsidiaries.

       

      For
        purposes of making the determination of whether any such designation of a
        Restricted Subsidiary as an Unrestricted Subsidiary complies with Section
        4.07
        the portion of the Fair Market Value of the net assets of such Restricted
        Subsidiary of the Company at the time that such Restricted Subsidiary is
        designated as an Unrestricted Subsidiary that is represented by the interest
        of
        the Company and its Restricted Subsidiaries in such Restricted Subsidiary,
        in
        each case as determined in good faith by the Board of Directors, shall be
        deemed
        to be an Investment. Such designation will be permitted only if such Investment
        would be permitted at such time under Section 4.07.

       

      The
        Board
        of Directors may designate any Unrestricted Subsidiary to be a Restricted
        Subsidiary only if:

       

      (1) immediately
        after giving effect to such designation, the Company is able to incur at
        least
        $1.00 of additional Indebtedness (other than Permitted Indebtedness) in
        compliance with Section 4.10; and

       

      (2) immediately
        before and immediately after giving effect to such designation, no Default
        or
        Event of Default shall have occurred and be continuing. Any such

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

      designation
        by the Board of Directors shall be evidenced to the Trustee by promptly filing
        with the Trustee a copy of the Board Resolution giving effect to such
        designation and an officers’ certificate certifying that such designation
        complied with the foregoing provisions.

       

      As
        of the
        Measuring Date, no Subsidiaries shall be deemed to be Unrestricted
        Subsidiaries.

       

      “Unsecured
        Indebtedness”
means
        any Indebtedness of the Company or any of its Restricted Subsidiaries that
        is
        not Secured Indebtedness.

       

      “Warehouse
        Facility”
means
        any financing arrangement of any kind, including, but not limited to, financing
        arrangements in the form of repurchase facilities, loan agreements, note
        issuance facilities and commercial paper facilities (and excluding, in all
        cases, Securitizations), with a financial institution or other lender or
        purchaser exclusively to (i) finance or refinance the purchase or origination
        or
        finance the pooling of Receivables by the Company or a Restricted Subsidiary
        of
        the Company, (ii) finance the funding of or refinance Servicing Advances;
        (iii)
        finance or refinance the carrying of REO Assets related to Receivable or
        (iv)
        finance or refinance the purchase or origination or finance the pooling of
        Residual Interests; provided
        that
        such purchase, origination, pooling, funding, refinancing and carrying is
        in the
        ordinary course of business.

       

      “Warehouse
        Indebtedness”
means
        Indebtedness in connection with a Warehouse Facility; the amount of any
        particular Warehouse Indebtedness as of any date of determination shall be
        calculated in accordance with GAAP.

       

      “Weighted
        Average Life to Maturity”
means,
        when applied to any Indebtedness at any date, the number of years obtained
        by
        dividing: (1) the then outstanding aggregate principal amount of such
        Indebtedness into (2) the sum of the total of the products obtained by
        multiplying (i) the amount of each then remaining installment, sinking
        fund, serial maturity or other required payment of principal, including payment
        at final maturity, in respect thereof, by (ii) the number of years
        (calculated to the nearest one-twelfth) which will elapse between such date
        and
        the making of such payment.

       

      “Wholly
        Owned Restricted Subsidiary”
of
        any
        Person means any Subsidiary of such Person of which all the outstanding voting
        securities (other than in the case of a foreign Subsidiary, directors’
qualifying shares or an immaterial amount of shares required to be owned
        by
        other Persons pursuant to applicable law) are owned by such Person or any
        Wholly
        Owned Restricted Subsidiary of such Person.

       

      SECTION
        1.02.  Other
        Definitions

       

       

      
        	
                Term

                 

              	
                Definedin
                  Section

                 

              
	
                Affiliate
                  Transaction

              	
                4.13

              
	
                Agent
                  Members

              	
                2.06(a)

              
	
                Authentication
                  Order

              	
                2.02

              
	
                Change
                  of Control Offer

              	
                4.16

              
	
                Change
                  of Control Payment

              	
                4.16

              
	
                Change
                  of Control Payment Date

              	
                4.16

              
	
                Company

              	
                Preamble

              
	
                Covenant
                  Defeasance

              	
                8.03

              
	
                DTC

              	
                2.03

              
	
                Event
                  of Default

              	
                6.01

              
	
                Excess
                  Cash Flow Offer 

              	
                4.17

              
	
                Excess
                  Cash Flow Offer Date

              	
                4.17

              
	
                Excess
                  Cash Flow Offer Amount

              	
                4.17

              
	
                Excess
                  Cash Flow Period

              	
                4.17

              
	
                Guarantee
                  Blockage Notice

              	
                13.03

              
	
                Guarantee
                  Payment Blockage Period

              	
                13.03

              
	
                Guarantor
                  Payment Default

              	
                13.03

              
	
                incur

              	
                4.10

              
	
                Net
                  Proceeds Offer

              	
                4.11

              
	
                Net
                  Proceeds Offer Amount

              	
                3.09

              
	
                Net
                  Proceeds Offer Trigger Date

              	
                4.11

              
	
                Non-Guarantor
                  Payment Default

              	
                13.03

              
	
                Offer
                  Period

              	
                3.09

              
	
                pay
                  its Guarantee

              	
                13.03

              
	
                Paying
                  Agent

              	
                2.03

              
	
                Purchase
                  Date

              	
                3.09

              
	
                Registrar

              	
                2.03

              
	
                Restricted
                  Payments

              	
                4.07

              
	
                Suspendable
                  Covenants

              	
                4.19

              
	
                Trigger
                  Date

              	
                4.17

              

      

       

      SECTION
        1.03.  Incorporation
        by Reference of Trust Indenture Act.
        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 Notes;

       

      “indenture
        security holder” means a Holder of a Note;

       

      “indenture
        to be qualified” means this Indenture;

       

      “indenture
        trustee” or “institutional trustee” means the Trustee; and

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

      “obligor”
        on the Notes and the Guarantees means the Company and the Guarantors,
        respectively, and any successor obligor upon the Notes and the Guarantees,
        respectively.

       

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

       

      SECTION
        1.04.  Rules
        of Construction.
        Unless
        the context otherwise requires:

       

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

       

      (2)  an
        accounting term not otherwise defined has the meaning assigned to it, and
        all
        accounting determinations shall be made, in accordance with GAAP;

       

      (3)  “or”
is
        not exclusive and “including” means “including without limitation”;

       

      (4)  words
        in
        the singular include the plural, and in the plural include the
        singular;

       

      (5)  all
        exhibits and the terms and provisions contained in the Notes are incorporated
        by
        reference herein and expressly made a part of this Indenture; however, to
        the
        extent any provision of any Note conflicts with the express provisions of
        this
        Indenture, the provisions of this Indenture shall govern and be
        controlling;

       

      (6)  Indebtedness
        that is unsecured shall not be deemed to be subordinate or junior to Secured
        Indebtedness merely because it is unsecured, and Senior Indebtedness is not
        deemed to be subordinated or junior to any other Senior Indebtedness merely
        because it has a junior priority with respect to the same
        collateral;

       

      (7)  references
        to sections of or rules under the Securities Act shall be deemed to include
        substitute, replacement or successor sections or rules adopted by the SEC
        from
        time to time;

       

      (8)  references
        to any statute, law, rule or regulation shall be deemed to refer to the same
        as
        from time to time amended and in effect and to any successor statute, law,
        rule
        or regulation;

       

      (9)  any
        transaction or event shall be considered “permitted by” or made “in accordance
        with” or “in compliance with” this Indenture or any particular provision thereof
        if such transaction or event is not expressly prohibited by this Indenture
        or
        such provision, as the case may be; and

       

      (10)  “will”
is
        interpreted to express a command.

       

      (11)  Acts
        of
        Holders

       

      (12)  Any
        request, demand, authorization, direction, notice, consent, waiver or other
        action provided by this Indenture to be given or taken by Holders may be
        embodied in and evidenced by one or more instruments of substantially similar
        tenor signed by such Holders in person or by an agent duly appointed in writing.
        Except as herein otherwise expressly provided, such action shall become
        effective when such instrument or instruments or record or both are delivered
        to
        the Trustee and, where it is hereby expressly required, to the Company. Proof
        of
        execution of any such instrument or of a writing appointing any such agent,
        or
        the holding by any Person of a Note, shall be sufficient for any purpose
        of this
        Indenture and (subject to Section 7.01) conclusive in favor of the Trustee
        and
        the Company, if made in the manner provided in this Section 1.05.

       

      (13)  The
        fact
        and date of the execution by any Person of any such instrument or writing
        may be
        proved by the affidavit of a witness of such execution or by the certificate
        of
        any notary public or other officer authorized by law to take acknowledgments
        of
        deeds, certifying that the individual signing such instrument or writing
        acknowledged to him the execution thereof. Where such execution is by or
        on
        behalf of any legal entity other than an individual, such certificate or
        affidavit shall also constitute proof of the authority of the Person executing
        the same. The fact and date of the execution of any such instrument or writing,
        or the authority of the Person executing the same, may also be proved in
        any
        other manner that the Trustee deems sufficient.

       

      (14)  Any
        request, demand, authorization, direction, notice, consent, waiver or other
        action by the Holder of any Note shall bind every future Holder of the same
        Note
        and the Holder of every Note issued upon the registration of transfer thereof
        or
        in exchange therefor or in lieu thereof, in respect of any action taken,
        suffered or omitted by the Trustee or the Company in reliance thereon, whether
        or not notation of such action is made upon such Note.

       

      (15)  The
        Company may, in the circumstances permitted by the Trust Indenture Act, set
        a
        record date for purposes of determining the identity of Holders entitled
        to give
        any request, demand, authorization, direction, notice, consent, waiver or
        take
        any other act, or to vote or consent to any action by vote or consent authorized
        or permitted to be given or taken by Holders. Unless otherwise specified,
        if not
        set by the Company prior to the first solicitation of a Holder made by any
        Person in respect of any such action, or in the case of any such vote, prior
        to
        such vote, any such record date shall be 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.

       

      (16)  Without
        limiting the foregoing, a Holder entitled to take any action hereunder with
        regard to any particular Note may do so with regard to all or any part of
        the
        principal amount of such Note or by one or more duly appointed agents, each
        of
        which may do so pursuant to such appointment with regard to all or any part
        of
        such principal amount. Any notice given or action taken by a Holder or its
        agents with regard to different parts of such principal amount pursuant to
        this
        paragraph shall have the same effect as if given or taken by separate Holders
        of
        each such different part.

       

      (17)  Without
        limiting the generality of the foregoing, a Holder, including DTC that is
        the
        Holder of a Global Note, may make, give or take, by a proxy or proxies duly
        appointed in writing, any request, demand, authorization, direction, notice,
        consent, waiver or other action provided in this Indenture to be made, given
        or
        taken by Holders, and DTC that is the Holder of a Global Note may provide
        its
        proxy or proxies to the Beneficial Owners of interests in any such Global
        Note
        through such depositary’s standing instructions and customary
        practices.

       

      (18)  The
        Company may fix a record date for the purpose of determining the Persons
        who are
        Beneficial Owners of interests in any Global Note held by DTC entitled under
        the
        procedures of such depositary to make, give or take, by a proxy or proxies
        duly
        appointed in writing, any request, demand, authorization, direction, notice,
        consent, waiver or other action provided in this Indenture to be made, given
        or
        taken by Holders. If such a record date is fixed, the Holders on such record
        date or their duly appointed proxy or proxies, and only such Persons, shall
        be
        entitled to make, give or take such request, demand, authorization, direction,
        notice, consent, waiver or other action, whether or not such Holders remain
        Holders after such record date. No such request, demand, authorization,
        direction, notice, consent, waiver or other action shall be valid or effective
        if made, given or taken more than 90 days after such record date.

       

      ARTICLE
        II  

       

       

      THE
        NOTES

       

      SECTION
        2.01.  Form
        and Dating.

       

      (a)  General.
        The
        Notes and the Trustee’s certificate of authentication shall be substantially in
        the form of Exhibit A hereto. The Notes may have notations, legends or
        endorsements required by law, stock exchange rule or usage. Each Note shall
        be
        dated the date of its authentication. The Notes shall be in minimum
        denominations of $2,000 and integral multiples of $1,000.

       

      The
        Global Notes shall be deposited on behalf of the purchasers of the Notes
        represented thereby with the Trustee as custodian for the Depositary, and
        registered in the name of the Depositary or a nominee of the Depositary,
        duly
        executed by the Company and authenticated by the Trustee as hereinafter
        provided.

       

      Each
        Global Note shall represent such of the outstanding Notes as shall be specified
        therein and each shall provide that it shall represent the aggregate amount
        of
        outstanding Notes from time to time endorsed thereon and that the aggregate
        amount of outstanding Notes represented thereby may from time to time be
        reduced
        or increased, as appropriate, to reflect exchanges, redemptions and transfers
        of
        interests. Any endorsement of a Global Note to reflect the amount of any
        increase or decrease in the amount of outstanding Notes represented thereby
        shall be made by the Trustee as the Note Custodian, or if the Trustee is
        not the
        Note Custodian, the Note Custodian at the direction of the Trustee, in
        accordance with instructions given by the Holder thereof as required by Section
        2.06 hereof.

       

      (b)  The
        Initial Notes are being issued by the Company only (i) to QIBs and
        (ii) in reliance on Regulation S. After such initial offers, Initial
        Notes that are Transfer R

       

      (c)  stricted
        Notes may be transferred (i) to QIBs in reliance on Rule 144A, (ii) to
        Accredited Investors in accordance with the Private Placement Legend,
        (iii) outside the United States pursuant to Regulation S, (iv) to
        the Company, in each case, in accordance with the terms of this Indenture
        and
        the Notes or (v) pursuant to other transfers that do not require registration
        under the Securities Act. Initial Notes that are offered to QIBs in reliance
        on
        Section 4(2) of the Securities Act shall be issued in the form of one or
        more
        permanent QIB Global Notes deposited with the Trustee, as Note Custodian,
        duly
        executed by the Company and authenticated by the Trustee as hereinafter
        provided. Initial Notes that are transferred to Accredited Investors in
        accordance with the Private Placement Legend shall be in the form of one
        or more
        permanent IAI Global Notes deposited with the Trustee, as Note Custodian,
        duly
        executed by the Company and authenticated by the Trustee as hereinafter
        provided. Initial Notes that are offered in offshore transactions in reliance
        on
        Regulation S shall be issued in the form of one or more Regulation S
        Global Notes deposited with the Trustee, as Note Custodian, duly executed
        by the
        Company and authenticated by the Trustee as hereinafter provided. The QIB
        Global
        Notes, IAI Global Notes and the Regulation S Global Notes shall each be
        issued with separate CUSIP numbers. The aggregate principal amount of each
        Global Note may from time to time be increased or decreased by adjustments
        made
        on the records of the Trustee, as Note Custodian. Transfers of Notes between
        or
        among QIBs and Accredited Investors and to or by purchasers pursuant to
        Regulation S shall be represented by appropriate increases and decreases to
        the respective amounts of the appropriate Global Notes, as more fully provided
        in Sections 2.06 and 2.16.

       

      Section
        2.01(b) shall apply only to Global Notes deposited with or on behalf of the
        Depositary.

       

      (d)  The
        Trustee shall have no responsibility or obligation to any Holder that is
        a
        member of (or a participant in) DTC or any other Person with respect to the
        accuracy of the records of DTC (or its nominee) or of any participant or
        member
        thereof, with respect to any ownership interest in the Notes or with respect
        to
        the delivery of any notice (including any notice of redemption) or the payment
        of any amount or delivery of any Notes (or other security or property) under
        or
        with respect to the Notes. The Trustee may rely (and shall be fully protected
        in
        relying) upon information furnished by DTC with respect to its members,
        participants and any Beneficial Owners in the Notes.

       

      (e)  Definitive
        Notes shall be substantially in the form of Exhibit A, attached hereto (but
        without including the text referred to in footnotes 2, 3 and 4
        thereto).

       

      (f)  Euroclear
        and Clearstream Procedures Applicable.
        The
        provisions of the “Operating Procedures of the Euroclear System” and “Terms and
        Conditions Governing Use of Euroclear” and the “General Terms and Conditions of
        Clearstream Banking” and “Customer Handbook” of Clearstream shall be applicable
        to transfers of beneficial interests in Regulation S Global Notes that are
        held
        by Participants through Euroclear or Clearstream.

       

      SECTION
        2.02.  Execution
        and Authentication.
        An
        Officer shall sign the Notes for the Company by manual or facsimile
        signature.

       

      If
        an
        Officer whose signature is on a Note no longer holds that office at the time
        a
        Note is authenticated, the Note shall nevertheless be valid.

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

      A
        Note
        shall not be valid until authenticated by the manual signature (which may
        be by
        facsimile) of the Trustee. The signature shall be conclusive evidence that
        the
        Note has been authenticated under this Indenture. At any time and from time
        to
        time after the execution and delivery of this Indenture, the Company may
        deliver
        Notes executed by the Company to the Trustee for authentication; and the
        Trustee
        shall authenticate and deliver (i) Initial Notes for original issue in the
        aggregate principal amount of $150,000,000, (ii) Additional Notes from time
        to
        time for original issue in aggregate principal amount specified by the Company
        and (iii) Exchange Notes from time to time for issue in exchange for a like
        principal amount of Initial Notes or Initial Additional Notes, in each case
        specified in clauses (i) through (iii) above, upon a written order of the
        Company signed by an Officer of the Company (an “Authentication
        Order”).
        Such
        Authentication Order shall specify the amount of the Notes to be authenticated
        and the date on which the Notes are to be authenticated, whether such notes
        are
        to be Initial Notes, Additional Notes or Exchange Notes and whether the Notes
        are to be issued as one or more Global Notes and such other information as
        the
        Company may include or the Trustee may reasonably request. The aggregate
        principal amount of Notes which may be authenticated and delivered under
        this
        Indenture is unlimited.

       

      The
        Trustee may appoint an authenticating agent acceptable to the Company to
        authenticate Notes. An authenticating agent may authenticate Notes whenever
        the
        Trustee may do so. Each reference in this Indenture to authentication by
        the
        Trustee includes authentication by such agent. An authenticating agent has
        the
        same rights as an Agent to deal with Holders or an Affiliate of the
        Company.

       

      SECTION
        2.03.  Registrar
        and Paying Agent.
        The
        Company shall maintain an office or agency where Notes may be presented for
        registration of transfer or for exchange (“Registrar”)
        and an
        office or agency where Notes may be presented for payment (“Paying
        Agent”).
        The
        Registrar shall keep a register of the Notes and of their transfer and exchange.
        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 notice to any Holder. The Company shall
        notify
        the Trustee in writing of the name and address of any Agent not a party to
        this
        Indenture. Until the Company notifies the Trustee in writing that it has
        appointed or maintained another entity as Registrar or Paying Agent, the
        Trustee
        shall act as such. The Company or any of its Restricted Subsidiaries may
        act as
        Paying Agent or Registrar.

       

      The
        Company initially appoints The Depository Trust Company (“DTC”)
        to act
        as Depositary with respect to the Global Notes.

       

      The
        Company initially appoints the Trustee to act as the Registrar and Paying
        Agent
        and to act as Note Custodian with respect to the Global Notes.

       

      SECTION
        2.04.  Paying
        Agent to Hold Money in Trust.
        The
        Company shall require each Paying Agent other than the Trustee to agree in
        writing that the Paying Agent shall hold in trust for the Trustee for the
        benefit of Holders of Notes or the Trustee all money held by the Paying Agent
        for the payment of principal, premium, if any, or interest on the Notes and
        shall notify the Trustee of any default by the Company in making any such
        payment. While any such default continues, the Trustee may require a Paying
        Agent 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 or a Subsidiary) shall have no further liability for the
        money.
        If the Company or a Subsidiary acts as Paying Agent, it shall segregate and
        hold
        in a separate trust fund for the benefit of the Holders of Notes all money
        held
        by it as Paying Agent. Upon any bankruptcy or reorganization proceedings
        relating to the Company, the Trustee shall serve as Paying Agent for the
        Notes.

       

      SECTION
        2.05.  Holder
        Lists.
        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 all Holders
        and
        shall otherwise comply with TIA Section 312(a). If the Trustee is not the
        Registrar, the Company shall furnish to the Trustee at least seven Business
        Days
        before each interest payment date and at such other times as the Trustee
        may
        request in writing, a list in such form and as of such date as the Trustee
        may
        reasonably require of the names and addresses of the Holders of Notes and
        the
        Company shall otherwise comply with TIA Section 312(a).

       

      SECTION
        2.06.  Transfer
        and Exchange.

       

      (a)  Each
        Global Note shall (i) be registered in the name of the Depositary for such
        Global Notes or the nominee of such Depositary, (ii) be delivered to the
        Trustee
        as custodian for such Depositary and (iii) bear legends as set forth in Section
        2.06(f).

       

      Members
        of, or participants in, the Depositary (“Agent
        Members”)
        shall
        have no rights under this Indenture with respect to any Global Note held
        on
        their behalf by the Depositary, or the Trustee as its custodian, or under
        such
        Global Note, and the Depositary may be treated by the Company, the Trustee
        and
        any agent of the Company or the Trustee as the absolute owner of such Global
        Note for all purposes whatsoever. Notwithstanding the foregoing, nothing
        herein
        shall prevent the Company, the Trustee or any agent of the Company or the
        Trustee, from giving effect to any written certification, proxy or other
        authorization furnished by the Depositary or impair, as between the Depositary
        and its Agent Members, the operation of customary practices governing the
        exercise of the rights of a Holder of any Note.

       

      (b)  Transfers
        of a Global Note shall be limited to transfers of such Global Note in whole,
        but
        not in part, to the Depositary, its successors or their respective nominees.
        Interests of Beneficial Owners in a Global Note may be transferred in accordance
        with Section 2.16 and the rules and procedures of the Depositary. In addition,
        Definitive Notes shall be transferred to all Beneficial Owners in exchange
        for
        their beneficial interests only if (i) the Depositary notifies the Company
        that
        the Depositary is unwilling or unable to continue as Depositary for the Global
        Notes or the Depositary ceases to be registered as a “clearing agency”
registered under the Exchange Act and a successor depositary is not appointed
        by
        the Company within ninety (90) days of such notice, (ii) the Company at its
        sole
        discretion, notifies the Trustee in writing that it elects to cause the issuance
        of Definitive Notes under this Indenture or (iii) an Event of Default of
        which a
        Responsible Officer of the Trustee has actual notice has occurred and is
        continuing and the Registrar has received a request from the Depositary to
        issue
        such Definitive Notes.

       

      (c)  In
        connection with the transfer of the entire Global Note to Beneficial Owners
        pursuant to clause (b) of this Section, such Global Note shall be deemed
        to be
        surre

       

      (d)  dered
        to
        the Trustee for cancellation, and the Company shall execute, and the Trustee
        shall authenticate and deliver, to each Beneficial Owner identified by the
        Depositary in exchange for its beneficial interest in such Global Note an
        equal
        aggregate principal amount of Definitive Notes of authorized
        denominations.

       

      (e)  The
        registered holder of a Global Note may grant proxies and otherwise authorize
        any
        person, including Agent Members and persons that may hold interests through
        Agent Members, to take any action which a Holder is entitled to take under
        this
        Indenture or the Notes.

       

      (f)  A
        Definitive Note may not be transferred or exchanged for a beneficial interest
        in
        a Global Note.

       

      (g)  Legends.
        The
        following legends shall appear on the face of all Global Notes and Definitive
        Notes issued under this Indenture unless specifically stated otherwise in
        the
        applicable provisions of this Indenture. 

       

      (i)  Private
        Placement Legend.
        Except
        as permitted by Section 2.16, each Global Note and each Definitive Note (and
        all
        Notes issued in exchange therefor or substitution thereof) shall bear the
        legend
        in substantially the following form:

       

      THIS
        SECURITY HAS NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED
        (THE “SECURITIES ACT”), OR THE SECURITIES LAWS OF ANY STATE OR OTHER
        JURISDICTION. NEITHER THIS SECURITY NOR ANY INTEREST OR PARTICIPATION HEREIN
        MAY
        BE REOFFERED, SOLD, ASSIGNED, TRANSFERRED, PLEDGED, ENCUMBERED OR OTHERWISE
        DISPOSED OF IN THE ABSENCE OF SUCH REGISTRATION OR UNLESS SUCH TRANSACTION
        IS
        EXEMPT FROM, OR NOT SUBJECT TO, SUCH REGISTRATION. THE HOLDER OF THIS SECURITY,
        BY ITS ACCEPTANCE HEREOF, AGREES ON ITS OWN BEHALF AND ON BEHALF OF ANY INVESTOR
        ACCOUNT FOR WHICH IT HAS PURCHASED SECURITIES, TO OFFER, SELL OR OTHERWISE
        TRANSFER SUCH SECURITY, PRIOR TO THE DATE (THE “RESALE RESTRICTION TERMINATION
        DATE”) THAT IS IN
        THE CASE OF NOTES OFFERED AND SOLD UNDER RULE 144A:
        TWO
        YEARS AND IN
        THE CASE OF NOTES OFFERED AND SOLD UNDER REGULATION S:
        40 DAYS
        AFTER THE LATER OF THE ORIGINAL ISSUE DATE HEREOF AND THE LAST DATE ON WHICH
        THE
        COMPANY OR ANY AFFILIATE OF THE COMPANY WAS THE OWNER OF THIS SECURITY (OR
        ANY
        PREDECESSOR OF SUCH SECURITY), ONLY (A) TO THE COMPANY, (B) PURSUANT TO A
        REGISTRATION STATEMENT THAT HAS BEEN DECLARED EFFECTIVE UNDER THE SECURITIES
        ACT, (C) FOR SO LONG AS THE SECURITIES ARE ELIGIBLE FOR RESALE PURSUANT TO
        RULE 144A UNDER THE SECURITIES ACT, TO A PERSON IT REASONABLY BELIEVES IS A
“QUALIFIED INSTITUTIONAL

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

      BUYER”
AS
        DEFINED IN RULE 144A UNDER THE SECURITIES ACT THAT PURCHASES FOR ITS OWN
        ACCOUNT OR FOR THE ACCOUNT OF A QUALIFIED INSTITUTIONAL BUYER TO WHOM NOTICE
        IS
        GIVEN THAT THE TRANSFER IS BEING MADE IN RELIANCE ON RULE 144A, (D)
        PURSUANT TO OFFERS AND SALES THAT OCCUR OUTSIDE THE UNITED STATES WITHIN
        THE
        MEANING OF REGULATION S UNDER THE SECURITIES ACT, (E) TO AN
        INSTITUTIONAL “ACCREDITED INVESTOR” WITHIN THE MEANING OF RULE 501(a)(1),
        (2), (3) OR (7) UNDER THE SECURITIES ACT THAT IS AN INSTITUTIONAL ACCREDITED
        INVESTOR ACQUIRING THE SECURITY FOR ITS OWN ACCOUNT OR FOR THE ACCOUNT OF
        SUCH
        AN INSTITUTIONAL ACCREDITED INVESTOR, IN EACH CASE IN A MINIMUM PRINCIPAL
        AMOUNT
        OF THE SECURITIES OF $250,000, FOR INVESTMENT PURPOSES AND NOT WITH A VIEW
        TO OR
        FOR OFFER OR SALE IN CONNECTION WITH ANY DISTRIBUTION IN VIOLATION OF THE
        SECURITIES ACT, OR (F) PURSUANT TO ANOTHER AVAILABLE EXEMPTION FROM THE
        REGISTRATION REQUIREMENTS OF THE SECURITIES ACT, SUBJECT TO THE COMPANY’S AND
        THE TRUSTEE’S RIGHT PRIOR TO ANY SUCH OFFER, SALE OR TRANSFER PURSUANT TO
        CLAUSES (E) OR (F) TO REQUIRE THE DELIVERY OF AN OPINION OF COUNSEL,
        CERTIFICATION AND/OR OTHER INFORMATION SATISFACTORY TO EACH OF THEM. THIS
        LEGEND
        WILL BE REMOVED UPON THE REQUEST OF THE HOLDER AFTER THE RESALE RESTRICTION
        TERMINATION DATE.

       

      (ii)  Global
        Note Legend.
        Each
        Global Note shall bear a legend in substantially the following
        form:

       

      UNLESS
        THIS CERTIFICATE IS PRESENTED BY AN AUTHORIZED REPRESENTATIVE OF THE DEPOSITORY
        TRUST COMPANY, TO THE COMPANY OR ITS AGENT FOR REGISTRATION OR TRANSFER,
        EXCHANGE OR PAYMENT, AND ANY CERTIFICATE ISSUED IS REGISTERED IN THE NAME
        OF
        CEDE & CO. OR TO SUCH OTHER ENTITY AS IS REQUIRED BY AN AUTHORIZED
        REPRESENTATIVE OF THE DEPOSITORY TRUST COMPANY OR SUCH OTHER REPRESENTATIVE
        OF
        THE DEPOSITORY TRUST COMPANY OR SUCH OTHER NAME AS IS REQUESTED BY AN AUTHORIZED
        REPRESENTATIVE OF THE DEPOSITORY TRUST COMPANY (AND ANY PAYMENT HEREON IS
        MADE
        TO CEDE & CO. OR TO SUCH OTHER ENTITY AS IS REQUESTED BY AN AUTHORIZED
        REPRESENTATIVE OF THE DEPOSITORY TRUST COMPANY) ANY TRANSFER, PLEDGE OR OTHER
        USE HEREOF FOR VALUE OR OTHERWISE BY OR TO ANY PERSON IS

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

      WRONGFUL
        SINCE THE REGISTERED OWNER HEREOF, CEDE & CO., HAS AN INTEREST
        HEREIN.

       

      TRANSFERS
        OF THIS GLOBAL SECURITY SHALL BE LIMITED TO TRANSFERS IN WHOLE, BUT NOT IN
        PART,
        TO NOMINEES OF CEDE & CO. OR TO A SUCCESSOR THEREOF OR SUCH SUCCESSOR’S
        NOMINEE.

       

      (h)  Cancellation
        and/or Adjustment of Global Notes.
        At such
        time as all beneficial interests in a particular Global Note have been exchanged
        for Definitive Notes or a particular Global Note has been redeemed, repurchased
        or canceled in whole and not in part, each such Global Note shall be returned
        to
        or retained and canceled by the Trustee in accordance with Section 2.11. At
        any time prior to such cancellation, if any beneficial interest in a Global
        Note
        is exchanged for or transferred to a Person who will take delivery thereof
        in
        the form of a beneficial interest in another Global Note or for Definitive
        Notes, the principal amount of Notes represented by such Global Note shall
        be
        reduced accordingly and an endorsement shall be made on such Global Note
        by the
        Trustee or by the Depositary at the direction of the Trustee to reflect such
        reduction; and if the beneficial interest is being exchanged for or transferred
        to a Person who will take delivery thereof in the form of a beneficial interest
        in another Global Note, such other Global Note shall be increased accordingly
        and an endorsement shall be made on such Global Note by the Trustee or by
        the
        Depositary at the direction of the Trustee to reflect such
        increase.

       

      (i)  General
        Provisions Relating to Transfers and Exchanges.

       

      (i)  To
        permit
        registrations of transfers and exchanges, the Company shall execute and the
        Trustee shall authenticate Global Notes and Definitive Notes upon the Company’s
        order or at the Registrar’s request.

       

      (ii)  No
        service charge shall be made to a holder of a beneficial interest in a Global
        Note or to a Holder of a Definitive Note for any registration of transfer
        or
        exchange, but 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 or transfer pursuant to Sections 2.02, 2.10, 3.06, 4.11, 4.16,
        4.17 and 9.05).

       

      (iii)  The
        Registrar shall not be required to register the transfer of or exchange any
        Note
        or portion of a Note selected for redemption or repurchase in whole or in
        part,
        except the unredeemed or unrepurchased portion of any Note being redeemed
        or
        repurchased in part.

       

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

       

      (v)  The
        Company shall not be required to register the transfer of or to exchange
        a Note
        for a period of 15 days before a selection of Notes to be redeemed or
        repurchased or during the period between a record date and the next succeeding
        interest payment date.

       

      (vi)  Prior
        to
        due presentment for the registration of a transfer of any Note, the Trustee,
        any
        Agent and the Company may deem and treat the Person in whose name any Note
        is
        registered as the absolute owner of such Note for the purpose of receiving
        payment of principal of and interest on such Notes and for all other purposes,
        and none of the Trustee, any Agent or the Company shall be affected by notice
        to
        the contrary.

       

      (vii)  The
        Trustee shall authenticate Global Notes and Definitive Notes in accordance
        with
        the provisions of Section 2.02.

       

      (viii)  All
        certifications, certificates and Opinions of Counsel required to be submitted
        to
        the Registrar pursuant to this Section 2.06 or Section 2.16 to effect a
        registration of transfer or exchange may be submitted by facsimile.

       

      SECTION
        2.07.  Replacement
        Notes.
        If any
        mutilated Note is surrendered to the Trustee or the Company and the Trustee
        receives evidence to its satisfaction of the destruction, loss or theft of
        any
        Note, the Company shall issue and the Trustee, upon receipt of an Authentication
        Order, shall authenticate a replacement Note if the Trustee’s requirements are
        met. If required by the Trustee or the Company, an indemnity bond must be
        supplied by the Holder that is sufficient in the judgment of the Trustee
        and the
        Company to protect the Company, the Trustee, any Agent and any authenticating
        agent from any loss that any of them may suffer if a Note is replaced. The
        Company may charge for its expenses in replacing a Note.

       

      Every
        replacement Note is an additional legally binding obligation of the Company
        and
        shall be entitled to all of the benefits of this Indenture equally and
        proportionately with all other Notes duly issued hereunder.

       

      SECTION
        2.08.  Outstanding
        Notes.
        The
        Notes outstanding at any time are all the Notes authenticated by the Trustee
        except for those canceled by it, those delivered to it for cancellation,
        those
        reductions in the interest in a Global Note effected by the Trustee in
        accordance with the provisions of this Indenture, and those described in
        this
        Section 2.08 as not outstanding. Except as set forth in Section 2.09, a
        Note does not cease to be outstanding because the Company or an Affiliate
        of the
        Company holds the Note.

       

      If
        a Note
        is replaced pursuant to Section 2.07, it ceases to be outstanding unless
        the Trustee receives proof satisfactory to it that the replaced Note is held
        by
        a bona fide purchaser.

       

      If
        the
        principal amount of any Note is considered paid under Section 4.01, it
        ceases to be outstanding and interest on it ceases to accrue.

       

      If
        the
        Paying Agent (other than the Company or a Subsidiary or an Affiliate of any
        thereof) holds, on a redemption date or maturity date, money sufficient to
        pay
        Notes payable on
        that
        date plus accrued and unpaid interest to such date, then on and after that
        date
        such Notes shall be deemed to be no longer outstanding and shall cease to
        accrue
        interest.

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

       

      SECTION
        2.09.  Treasury
        Notes.
        In
        determining whether the Holders of the required principal amount of Notes
        have
        concurred in any direction, waiver or consent, Notes owned by the Company,
        or by
        any Person directly or indirectly controlling or controlled by or under direct
        or indirect common control with the Company, shall be considered as though
        not
        outstanding, except that for the purposes of determining whether the Trustee
        shall be protected in relying on any such direction, waiver or consent, only
        Notes that a Responsible Officer of the Trustee knows are so owned shall
        be so
        disregarded.

       

      SECTION
        2.10.  Temporary
        Notes.
        Until
        certificates representing Notes are ready for delivery, the Company may prepare
        and the Trustee, upon receipt of an Authentication Order, shall authenticate
        temporary Notes. Temporary Notes shall be substantially in the form of
        certificated Notes but may have variations that the Company considers
        appropriate for temporary Notes and as shall be reasonably acceptable to
        the
        Trustee. Without unreasonable delay, the Company shall prepare and the Trustee
        shall authenticate, upon receipt of an Authentication Order, definitive Notes
        in
        exchange for temporary Notes.

       

      Holders
        of temporary Notes shall be entitled to all of the benefits of this
        Indenture.

       

      SECTION
        2.11.  Cancellation.
        The
        Company at any time may deliver Notes and by written notice direct the Trustee
        to cancel such Notes. The Registrar and Paying Agent shall forward to the
        Trustee any Notes surrendered to them for registration of transfer, exchange
        or
        payment. The Trustee and no one else shall cancel all Notes surrendered for
        registration of transfer, exchange, payment, replacement or cancellation
        and
        shall dispose of such canceled Notes in its customary manner. The Company
        may
        not issue new Notes to replace Notes that it has paid or that have been
        delivered to the Trustee for cancellation.

       

      SECTION
        2.12.  Defaulted
        Interest.
        If the
        Company defaults in a payment of interest on the Notes, it shall pay the
        defaulted interest in any lawful manner plus, to the extent lawful, interest
        payable on the defaulted interest, to the Persons who are Holders of Notes
        on a
        subsequent special record date, in each case at the rate provided in such
        Notes
        and in Section 4.01. The Company shall notify the Trustee in writing of the
        amount of defaulted interest proposed to be paid on each such Note and the
        date
        of the proposed payment and at the same time the Company shall deposit with
        the
        Trustee an amount of money equal to the aggregate amount proposed to be paid
        in
        respect of such defaulted interest or shall make arrangements satisfactory
        to
        the Trustee for such deposit prior to the date of the proposed payment, such
        money when deposited to be held in trust for the benefit of the Persons entitled
        to such defaulted interest as provided in this Section 2.12. The Company
        shall
        fix or cause to be fixed each such special record date and payment date;
        provided
        that no
        such special record date shall be less than 10 days prior to the related
        payment
        date for such defaulted interest. At least 15 days before the special record
        date, the Company (or, upon the written request of the Company, the Trustee
        in
        the name and at the expense of the Company) shall mail or cause to be mailed
        to
        Holders of such Notes a notice that states the special record date, the related
        payment date and the amount of such interest to be paid.

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

      Subject
        to the foregoing provisions of this Section 2.12 and for greater certainty,
        each
        Note delivered under this Indenture upon registration of transfer of or in
        exchange for or in lieu of any other Note shall carry the rights to interest
        accrued and unpaid, and to accrue, which were carried by such other
        Note.

       

      SECTION
        2.13.  Record
        Date.
        The
        record date for purposes of determining the identity of Holders entitled
        to vote
        or consent to any action by vote or consent authorized or permitted under
        this
        Indenture shall be determined as provided for in TIA § 316(c) and Section
        1.05.

       

      SECTION
        2.14.  Computation
        of Interest.
        Interest on the Notes shall be computed on the basis of a 360-day year comprised
        of twelve 30-day months.

       

      SECTION
        2.15.  CUSIP
        Number.
        The
        Company in issuing the Notes may use “CUSIP” numbers, and if it does so, the
        Trustee shall use such CUSIP numbers in notices of redemption or exchange
        as a
        convenience to Holders; provided
        that any
        such notice may state that no representation is made as to the correctness
        or
        accuracy of the CUSIP numbers printed in the notice or on the Notes and that
        reliance may be placed only on the other identification numbers printed on
        the
        Notes. The Company shall promptly notify the Trustee of any change in the
        CUSIP
        numbers.

       

      SECTION
        2.16.  Special
        Transfer Provisions.
        Unless
        and until a Transfer Restricted Note is transferred or exchanged under an
        effective registration statement under the Securities Act, the following
        provisions shall apply:

       

      (a)  Transfers
        to QIBs.
        The
        following provisions shall apply with respect to the registration of any
        proposed transfer of a Transfer Restricted Note to a QIB:

       

      (i)  The
        Registrar shall register the transfer of a Transfer Restricted Note by a
        Holder
        to a QIB if such transfer is being made by a proposed transferor who has
        provided the Registrar with (a) an appropriately completed certificate of
        transfer in the form attached to the Note and (b) a letter substantially
        in the
        form set forth in Exhibit B
        hereto.

       

      (ii)  If
        the
        proposed transferee is an Agent Member and the Transfer Restricted Note to
        be
        transferred consists of an interest in either a Regulation S Global Note,
        an IAI Global Note or an Other Global Note, upon receipt by the Registrar
        of
        (x) the items required by paragraph (i) above and (y) instructions given in
        accordance with the Depositary’s and the Registrar’s procedures therefor, the
        Registrar shall reflect on its books and records the date and an increase
        in the
        principal amount of the QIB Global Note in an amount equal to the principal
        amount of the beneficial interest in the Regulation S Global Note, IAI
        Global Note or Other Global Note, as applicable, to be so transferred, and
        the
        Registrar shall reflect on its books and records the date and an appropriate
        decrease in the principal amount of such Regulation S Global Note, IAI
        Global Note or Other Global Note, as applicable.

       

      (iii)  Transfers
        Pursuant to Regulation S.
        The
        following provisions shall apply with respect to the registration of any
        proposed transfer of a Transfer Restricted Note pursuant to Regulation S:

       

      (iv)  The
        Registrar shall register any proposed transfer of a Transfer Restricted Note
        pursuant to Regulation S by a Holder upon receipt of (a) an appropriately
        completed certificate of transfer in the form attached to the Note and (b)
        a
        letter substantially in the form set forth in Exhibit C
        hereto
        from the proposed transferor.

       

      (v)  If
        the
        proposed transferee is an Agent Member and the Transfer Restricted Note to
        be
        transferred consists of an interest in a QIB Global Note, an IAI Global Note
        or
        an Other Global Note, upon receipt by the Registrar of (x) the items
        required by paragraph (i) above and (y) instructions given in
        accordance with the Depositary’s and the Registrar’s procedures therefor, the
        Registrar shall reflect on its books and records the date and an increase
        in the
        principal amount of the Regulation S Global Note in an amount equal to the
        principal amount of the beneficial interest in the QIB Global Note, IAI Global
        Note or Other Global Note, as applicable, to be transferred, and the Registrar
        shall reflect on its books and records the date and an appropriate decrease
        in
        the principal amount of the QIB Global Note, IAI Global Note or Other Global
        Note, as applicable.

       

      (b)  Transfers
        to Non-QIB Accredited Investors.
        The
        following provisions shall apply with respect to the registration of any
        proposed transfer of a Transfer Restricted Note to any Accredited Investor
        which
        is not a QIB:

       

      (i)  The
        Registrar shall register any proposed transfer of a Transfer Restricted Note
        to
        an Accredited Investor which is not a QIB if (a) the requested transfer is
        after
        the second anniversary of the Measurement Date; provided,
        however,
        that
        neither the Company nor any Affiliate of the Company has held any beneficial
        interest in such Note, or portion thereof, at any time on or prior to the
        second
        anniversary of the Measurement Date or (b) the proposed transferee has
        delivered to the Registrar a certificate substantially in the form set forth
        in
Exhibit
        D
        hereto,
        together with the legal opinion, if any, required thereby.

       

      (ii)  If
        the
        proposed transferee is an Agent Member and the Transfer Restricted Note to
        be
        transferred consists of an interest in a QIB Global Note, a Regulation S
        Global Note or an Other Global Note, upon receipt by the Registrar of
        (x) the items required by paragraph (i) above and
        (y) instructions given in accordance with the Depositary’s and the
        Registrar’s procedures therefor, the Registrar shall reflect on its books and
        records the date and an increase in the principal amount of the IAI Global
        Note
        in an amount equal to the principal amount of the beneficial interest in
        the QIB
        Global Note, Regulation S Global Note or Other Global Note, as applicable,
        to be transferred, and the Registrar shall reflect on its books and records
        the
        date and an appropriate decrease in the principal amount of the QIB Global
        Note,
        Regulation S Global Note or Other Global Note, as applicable.

       

      (iii)  Exchange
        Offer.
        Upon
        the occurrence of the applicable Registered Exchange Offer in accordance
        with
        the applicable Registration Rights Agreement, the Company shall issue and,
        upon
        receipt of an Authentication Order in accordance with Section 2.02, the Trustee
        shall authenticate one or more Global Notes not bearing the Private Placement
        Legend in an aggregate principal amount equal to the principal amount of
        the
        beneficial interests in the Global Notes that are Transfer Restricted Notes
        tendered for acceptance in accordance with the Registered Exchange Offer
        and
        accepted for exchange in the Registered Exchange Offer.

       

      Concurrently
        with the issuance of such Global Notes, the Registrar shall cause the aggregate
        principal amount of the applicable Transfer Restricted Notes to be reduced
        accordingly, and the Registrar shall deliver to the Persons designated by
        the
        Holders of Transfer Restricted Notes Global Notes not bearing the Private
        Placement Legend in the appropriate principal amount.

       

      (c)  Other
        Transfers.
        The
        following provisions shall apply with respect to the registration by the
        Registrar of any other proposed transfer of a Transfer Restricted Note that
        does
        not require registration under the Securities Act:

       

      (i)  The
        Registrar shall register such transfer if it is being made by a proposed
        transferor who has provided the Registrar with (a) an appropriately completed
        certificate of transfer in the form attached to the Note and (b) a legal
        opinion
        from a law firm of nationally recognized standing to the effect that such
        transfer does not require registration under the Securities Act.

       

      (ii)  Subject
        to clause (iii) below, if the proposed transferee is an Agent Member and
        the
        Transfer Restricted Note to be transferred consists of an interest in either
        a
        QIB Global Note, a Regulation S Global Note or an IAI Global Note, upon
        receipt by the Registrar of (x) the items required by paragraph (i) above
        and (y) instructions given in accordance with the Depositary’s and the
        Registrar’s procedures therefor, the Registrar shall reflect on its books and
        records the date and an increase in the principal amount of the Other Global
        Note in an amount equal to the principal amount of the beneficial interest
        in
        the QIB Global Note, the Regulation S Global Note or the IAI Global Note,
        as applicable, to be so transferred, and the Registrar shall reflect on its
        books and records the date and an appropriate decrease in the principal amount
        of such QIB Global Note, Regulation S Global Note or IAI Global Note, as
        applicable.

       

      (iii)  In
        connection with the first transfer pursuant to this Section 2.16(e), an Other
        Global Note shall be issued in the form of a permanent Global Note substantially
        in the form set forth in Exhibit A hereto, deposited with the Trustee, as
        Note Custodian, duly executed by the Company and authenticated by the Trustee
        as
        herein provided. Each Other Global Note shall be issued with its own CUSIP
        number. The aggregate principal amount of the Other Global Note may from
        time to
        time be increased or decreased by adjustments made on the records of the
        Trustee, as Note Custodian. 

       

      (iv)  Private
        Placement Legend.
        Upon
        the transfer, exchange or replacement of Notes not bearing the Private Placement
        Legend, the Registrar shall deliver Notes that do not bear the Private Placement
        Legend. Upon the transfer, exchange or replacement of Transfer Restricted
        Notes,
        the Registrar shall deliver only Transfer Restricted Notes unless either
        (i) such transfer or exchange is made in connection with a Registered
        Exchange Offer, (ii), or (ii) there is delivered to the Registrar an
        Opinion of Counsel reasonably satisfactory to the Company and the Trustee
        to the
        effect that neither such legend nor the related restrictions on transfer
        are
        required in order to maintain compliance with the provisions of the Securities
        Act.

       

      (d)  General.
        By its
        acceptance of any Transfer Restricted Note, each Holder of such a Note
        acknowledges the restrictions on transfer of such Note set forth in this
        Indenture and in the Private Placement Legend and agrees that it shall transfer
        such Note only as provided in this Indenture.

       

      The
        Registrar shall retain copies of all letters, notices and other written
        communications received pursuant to this Section 2.16.

       

      SECTION
        2.17.  Issuance
        of Additional Notes.
        Subject
        to the Company’s compliance with Section 4.10 hereof, the Company shall be
        entitled to issue Additional Notes under this Indenture that shall have
        identical terms as the Initial Notes, other than with respect to the date
        of
        issuance, issue price and amount of interest payable on the first interest
        payment date applicable thereto (and other than with respect to transfer
        restrictions, any Registration Rights Agreement and additional interest with
        respect thereto). The Initial Notes, any Additional Notes and all Exchange
        Notes
        shall be treated as a single class for all purposes under this
        Indenture.

       

      With
        respect to any Additional Notes, the Company shall set forth in a resolution
        of
        its Board of Directors and in an Officers’ Certificate, a copy of each of which
        shall be delivered to the Trustee, the following information:

       

      (i)  the
        aggregate principal amount of such Additional Notes to be authenticated and
        delivered pursuant to this Indenture;

       

      (ii)  the
        issue
        price and the date on which such Additional Notes shall be issued, the CUSIP
        number, the first interest payment date and the amount of interest payable
        on
        such first interest payment date applicable thereto and the date from which
        interest shall accrue; and

       

      (iii)  whether
        such Additional Notes shall be Transfer Restricted Notes and whether they
        will
        be QIB Global Notes or Regulation S Global Notes.

       

      (iv)  

       

       

      REDEMPTION

       

      SECTION
        2.18.  Notices
        to Trustee.
        If the
        Company elects to redeem Notes pursuant to the optional redemption provisions
        of
        Section 3.07, it shall furnish to the Trustee, at least 30 days but not
        more than 60 days before a redemption date, an Officers’ Certificate setting
        forth (i) the clause of this Indenture pursuant to which the redemption
        shall occur, (ii) the redemption date, (iii) the principal amount of
        Notes to be redeemed and (iv) the redemption price.

       

      SECTION
        2.19.  Selection
        of Notes to Be Redeemed.
        If less
        than all of the Notes are redeemed or purchased in an offer to purchase at
        any
        time, the Trustee shall select the Notes to be redeemed or purchased among
        the
        Holders of the Notes in compliance with the requirements of the principal
        national securities exchange, if any, on which the Notes are listed or, if
        the
        Notes are not so listed, on a pro rata basis, by lot or in accordance with
        any
        other method the Trustee shall deem fair and appropriate. In the event of
        partial redemption by lot, the particular Notes to be redeemed shall be
        selected, unless otherwise provided herein, not less than 30 nor more than
        60
        days prior to the redemption date by the Trustee from the outstanding Notes
        not
        previously called for redemption.

       

      The
        Trustee shall promptly notify the Company in writing of the Notes selected
        for
        redemption and, in the case of any Note selected for partial redemption,
        the
        principal amount thereof to be redeemed. Notes and portions of Notes selected
        shall be in minimum amounts of $2,000 or whole multiples of $1,000; no Notes
        of
        $2,000 or less can be redeemed in part, except that if all of the Notes of
        a
        Holder are to be redeemed, the entire outstanding amount of Notes held by
        such
        Holder, even if not a multiple of $1,000, shall be redeemed. Except as provided
        in the preceding sentence, provisions of this Indenture that apply to Notes
        called for redemption also apply to portions of Notes called for redemption.
        If
        a partial redemption is made with the proceeds of an Equity Offering, the
        Trustee will select the Notes only on a pro
        rata
        basis or
        on as nearly a pro
        rata
        basis as
        is practicable (subject to DTC procedures).

       

      SECTION
        2.20.  Notice
        of Redemption.
        Subject
        to the provisions of Section 3.09, at least 30 days but not more than 60
        days before a redemption date, the Company shall mail or cause to be mailed,
        by
        first class mail, a notice of redemption to each Holder whose Notes are to
        be
        redeemed at its registered address.

       

      The
        notice shall identify the Notes to be redeemed and shall state:

       

      (a)  the
        redemption date;

       

      (b)  the
        redemption price;

       

      (c)  if
        any
        Note is being redeemed in part, the portion of the principal amount of such
        Note
        to be redeemed and that, after the redemption date upon surrender of such
        Note,
        a new Note or Notes in principal amount equal to the unredeemed portion shall
        be
        issued upon cancellation of the original Note;

       

      (d)  the
        name
        and address of the Paying Agent;

       

      (e)  that
        Notes called for redemption must be surrendered to the Paying Agent to collect
        the redemption price;

       

      (f)  that,
        unless the Company defaults in making such redemption payment, interest on
        Notes
        called for redemption ceases to accrue on and after the redemption
        date;

       

      (g)  the
        paragraph of the Notes and/or Section of this Indenture pursuant to which
        the
        Notes called for redemption are being redeemed; and

       

      (h)  that
        no
        representation is made as to the correctness or accuracy of the CUSIP number,
        if
        any, listed in such notice or printed on the Notes.

       

      At
        the
        Company’s request, the Trustee shall give the notice of redemption in the
        Company’s name and at its expense; provided,
        however,
        that
        the Company shall have delivered to the Trustee, at least 45 days prior to
        the
        redemption date, an Officers’ Certificate requesting that the Trustee give such
        notice and setting forth the information to be stated in such notice as provided
        in the preceding paragraph.

       

      SECTION
        2.21.  Effect
        of Notice of Redemption.
        Once
        notice of redemption is mailed in accordance with Section 3.03, Notes
        called for redemption become irrevocably due and payable on the redemption
        date
        at the redemption price. A notice of redemption may not be
        conditional.

       

      SECTION
        2.22.  Deposit
        of Redemption Price.
        At or
        prior to 10:00 a.m., New York City time, on the redemption date, the Company
        shall deposit with the Trustee or with the Paying Agent money sufficient
        to pay
        the redemption price of and accrued interest on all Notes to be redeemed
        on that
        date. The Trustee or the Paying Agent shall promptly return to the Company
        any
        money deposited with the Trustee or the Paying Agent by the Company in excess
        of
        the amounts necessary to pay the redemption price of, and accrued interest
        on,
        all Notes to be redeemed.

       

      If
        the
        Company complies with the provisions of the preceding paragraph, on and after
        the redemption date, interest shall cease to accrue on the Notes or the portions
        of Notes called for redemption. Notwithstanding anything herein to the contrary,
        if a Note is redeemed on or after an interest record date but on or prior
        to the
        related interest payment date, then any accrued and unpaid interest shall
        be
        paid to the Person in whose name such Note was registered on the redemption
        date. If any Note called for redemption shall not be so paid upon surrender
        for
        redemption because of the failure of the Company to comply with the preceding
        paragraph, interest shall be paid on the unpaid principal, from the redemption
        date until such principal is paid, and to the extent lawful on any interest
        not
        paid on such unpaid principal, in each case at the rate provided in the Notes
        and in Section 4.01.

       

      SECTION
        2.23.  Notes
        Redeemed in Part.
        Upon
        surrender of a Note that is redeemed in part, the Company shall issue and,
        upon
        the Company’s written request, the Trustee shall authenticate for the Holder at
        the expense of the Company a new Note equal in principal amount
        to
        the unredeemed portion of the Note surrendered;
        provided
        that
        each new Note will be in a minimum principal amount of $2,000 and an integral
        multiple of $1,000.

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

       

      SECTION
        2.24.  Optional
        Redemption.
        

       

      (1)  At
        any
        time, or from time to time, on or prior to May 1, 2009, the Company may, at
        its option, use the net cash proceeds of one or more Equity Offerings to
        redeem
        up to 35% of the aggregate principal amount of the Initial Notes and Additional
        Notes initially issued under this Indenture at a redemption price of 112.000%
        of
        the principal amount thereof plus accrued and unpaid interest thereon, if
        any,
        to the date of redemption; provided
        that the
        Company makes such redemption not more than 90 days after the consummation
        of
        any such Equity Offering.

       

      (2)  In
        addition, the Notes may be redeemed, in whole or in part, at any time prior
        to
        the maturity date at the option of the Company at a redemption price equal
        to
        100% of the principal amount of the Notes redeemed plus the Applicable Premium
        as of, and accrued and unpaid interest to, the applicable redemption
        date.

       

      (3)  Any
        redemption pursuant to this Section 3.07 shall be made pursuant to the
        provisions of Sections 3.01 through 3.06.

       

      SECTION
        2.25.  Mandatory
        Redemption or Repurchase.
        Except
        as otherwise provided in Section 4.11, Section 4.16 or Section 4.17
        below, the Company shall not be required to make mandatory redemption or
        sinking
        fund payments with respect to the Notes or be required to repurchase any
        Notes.

       

      SECTION
        2.26.  Offer
        to Purchase by Application of Net Proceeds.
        In the
        event that the Company shall be required to commence an offer to all Holders
        to
        purchase Notes pursuant to Section 4.11 (a “Net
        Proceeds Offer”),
        it
        shall follow the procedures specified below.

       

      The
        Net
        Proceeds Offer shall remain open for a period of 20 Business Days following
        its
        commencement and no longer, except to the extent that a longer period is
        required by applicable law (the “Offer
        Period”).
        No
        later than five Business Days after the termination of the Offer Period (any
        such date of purchase, the “Purchase
        Date”)
        (which
        shall not be less than 30 nor more than 45 days following the applicable
        Net
        Proceeds Offer Trigger Date), the Company shall purchase the principal amount
        of
        Notes required to be purchased pursuant to Section 4.11 (the “Net
        Proceeds Offer Amount”)
        or, if
        less than the Net Proceeds Offer Amount has been tendered, all Notes tendered
        in
        response to the Net Proceeds Offer. Payment for any Notes so purchased shall
        be
        made in the same manner as interest payments are made. Unless the Company
        defaults in making such payment, any Note accepted for payment pursuant to
        the
        Net Proceeds Offer shall cease to accrue interest after the Purchase Date.
        If
        any Net Cash Proceeds remain after the consummation of any Net Proceeds Offer,
        the Company may use those Net Cash Proceeds for any purpose not otherwise
        prohibited by this Indenture. Upon completion of each Net Proceeds Offer,
        the
        amount of Net Cash Proceeds will be reset at zero.

       

      The
        Company shall comply with the requirements of Rule 14e-1 under the Exchange
        Act (or any successor rules) and any other securities laws and regulations
        thereunder to the
        extent such laws and regulations are applicable in connection with the
        repurchase of the Notes pursuant to a Net Proceeds Offer. To the extent that
        the
        provisions of any securities laws or regulations conflict with the provisions
        of
        this Section 3.09, the Company shall comply with such laws and regulations
        shall not be deemed to have breached its obligations under this
        Section 3.09.

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

       

      Notwithstanding
        anything to the contrary in this Indenture, if the Purchase Date is on or
        after
        an interest record date and on or before the related interest payment date,
        any
        accrued and unpaid interest shall be paid to the Person in whose name a Note
        is
        registered on the Purchase Date.

       

      Within
        25
        days following the Net Proceeds Offer Trigger Date, the Company shall send,
        by
        first class mail, a notice to each of the Holders, with a copy to the Trustee.
        The notice shall contain all instructions and materials necessary to enable
        such
        Holders to tender Notes pursuant to the Net Proceeds Offer. The Net Proceeds
        Offer shall be made to all Holders. The notice, which shall govern the terms
        of
        the Net Proceeds Offer, shall state:

       

      (a)  that
        the
        Net Proceeds Offer is being made pursuant to this Section 3.09 and
        Section 4.11 and the length of time the Net Proceeds Offer shall remain
        open;

       

      (b)  the
        Net
        Proceeds Offer Amount, the purchase price and the Purchase Date;

       

      (c)  that
        any
        Note not tendered or accepted for payment shall continue to accrue
        interest;

       

      (d)  that,
        unless the Company defaults in making such payment, any Note accepted for
        payment pursuant to the Net Proceeds Offer shall cease to accrue interest
        after
        the Purchase Date;

       

      (e)  that
        Holders electing to have a Note purchased pursuant to a Net Proceeds Offer
        may
        elect to have Notes purchased in minimum denominations of $2,000 and integral
        multiples of $1,000 only;

       

      (f)  that
        Holders electing to have a Note purchased pursuant to any Net Proceeds Offer
        shall be required to surrender the Note, with the form entitled “Option of
        Holder to Elect Purchase” on the reverse of the Note completed, or transfer by
        book-entry transfer, to the Company, a depositary, if appointed by the Company,
        or a Paying Agent at the address specified in the notice at least three Business
        Days before the Purchase Date;

       

      (g)  that
        Holders shall be entitled to withdraw their election if the Company, the
        depositary or the Paying Agent, as the case may be, receives, not later than
        the
        expiration of the Offer Period, a telegram, telex, facsimile transmission
        or
        letter setting forth the name of the Holder, the principal amount of the
        Note
        the Holder delivered for purchase and a statement that such Holder is
        withdrawing his election to have such Note purchased;

       

      (h)  that,
        if
        the aggregate principal amount of Notes surrendered by Holders exceeds the
        Offer
        Amount, the Company shall select the Notes to be purchased on a pro rata
        basis
        (with such adjustments as may be deemed appropriate by the Company so that
        only
        Notes in minimum denominations of $2,000 and integral multiples of $1,000,
        shall
        be purchased); and

       

      (i)  that
        Holders whose Notes were purchased only in part shall be issued new Notes
        equal
        in principal amount to the unpurchased portion of the Notes surrendered (or
        transferred by book-entry transfer).

       

      On
        or
        before the Purchase Date, the Company shall, to the extent lawful, accept
        for
        payment, on a pro rata basis to the extent necessary, the Net Proceeds Offer
        Amount of Notes or portions thereof tendered pursuant to the Net Proceeds
        Offer
        or if less than the Net Proceeds Offer Amount has been tendered, all Notes
        tendered, and shall deliver to the Trustee an Officers’ Certificate stating that
        such Notes or portions thereof were accepted for payment by the Company in
        accordance with the terms of this Section 3.09. The Company, the Depositary
        or the Paying Agent, as the case may be, shall promptly (but in any case
        not
        later than five days after the Purchase Date) mail or deliver to each tendering
        Holder an amount equal to the purchase price of the Notes tendered by such
        Holder and accepted by the Company for purchase, and the Company shall promptly
        issue a new Note, and the Trustee, upon written request from the Company,
        shall
        authenticate and mail or deliver such new Note to such Holder, in a principal
        amount equal to any unpurchased portion of the Note surrendered; provided
        that
        each such new Note shall be in a minimum principal amount of $2,000 and integral
        multiples of $1,000. Any Note not so accepted shall be promptly mailed or
        delivered by the Company to the Holder thereof. The Company shall publicly
        announce the results of the Net Proceeds Offer on the Purchase
        Date.

       

      ARTICLE
        III  

       

       

      COVENANTS

       

      SECTION
        3.01.  Payment
        of Notes.
        The
        Company shall pay or cause to be paid the principal, premium, if any, and
        interest on the Notes on the dates and in the manner provided in the Notes.
        Principal, premium, if any, and interest shall be considered paid on the
        date
        due if the Paying Agent, if other than the Company or a Subsidiary thereof,
        holds as of 10:00 a.m. New York City time on the due date money deposited
        by the
        Company in immediately available funds and designated for and sufficient
        to pay
        all principal, premium, if any, and interest then due. The Company shall
        pay all
        Special Interest, if any, in the same manner on the dates and in the amounts
        set
        forth in any Registration Rights Agreement.

       

      The
        Company shall pay interest (including post-petition interest in any proceeding
        under any Bankruptcy Law) on overdue principal at the then applicable interest
        rate on the Notes; 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 to the extent
        lawful.

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

      Maintenance
        of Office or Agency.
        The
        Company shall maintain an office or agency (which may be an office of the
        Trustee or an affiliate of the Trustee, Registrar or co-registrar) where
        Notes
        may be surrendered for registration of transfer or for exchange and where
        notices and demands to or upon the Company in respect of the Notes and this
        Indenture may be served. The Company shall 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.

       

      The
        Company may also from time to time designate one or more other offices or
        agencies where the Notes may be presented or surrendered for any or all such
        purposes and may from time to time rescind such designations. The Company
        shall
        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.

       

      The
        Company hereby designates Deutsche Bank Trust Company Americas, at 60 Wall
        Street - 27th
        floor,
        New York, New York 10005, Attn: Trust and Securities Services, as one such
        office or agency of the Company in accordance with
        Section 2.03.

       

      SECTION
        3.02.  Reports.

       

      (a)  Whether
        or not required by the rules and regulations of the SEC, so long as any Notes
        are outstanding, the Company will furnish the record Holders of
        Notes:

       

      (1)  all
        quarterly and annual financial information that would be required to be
        contained in a filing with the SEC on Forms 10-Q and 10-K if the Company
        were
        required to file such Forms, including a “Management’s Discussion and Analysis
        of Financial Condition and Results of Operations” that describes the financial
        condition and results of operations of the Company and its consolidated
        Subsidiaries and, with respect to the annual information only, a report thereon
        by the Company’s certified independent accountants; and

       

      (2)  all
        current reports that would be required to be filed with the SEC on Form 8-K
        if
        the Company were required to file such reports,

       

      in
        each
        case within the time periods specified in the SEC’s rules and
        regulations.

       

      (b)  If
        the
        Company has designated any of its Subsidiaries as an Unrestricted Subsidiary,
        then the quarterly and annual financial information required by the preceding
        paragraph shall include a reasonably detailed presentation, either on the
        face
        of the financial statements or in the footnotes to the financial statements
        and
        in Management’s Discussion and Analysis of Financial Condition and Results of
        Operations, of the financial condition and results of operations of the Company
        and its Restricted Subsidiaries.

       

      (c)  In
        addition, whether or not required by the rules and regulations of the SEC,
        the
        Company will file a copy of all such information and reports with the SEC
        for
        public

       

      (d)  availability
        within the time periods specified in the SEC’s rules and regulations (unless the
        SEC will not accept such a filing) and make such information available to
        prospective investors upon request. In addition, the Company has agreed that,
        for so long as any Notes remain outstanding, it will furnish to the Holders
        and
        to prospective investors, upon their request, the information required to
        be
        delivered pursuant to Rule 144A(d)(4) under the Securities Act.

       

      (e)  Notwithstanding
        anything to the contrary, the Company will be deemed to have complied with
        its
        obligations in the preceding three paragraphs if it has timely filed
        electronically with the SEC’s Electronic Data Gathering, Analysis and Retrieval
        System (or any successor system) the reports and information described
        above.

       

      SECTION
        3.03.  Compliance
        Certificate.

       

      (1)  The
        Company and each Guarantor (to the extent that such Guarantor is required
        under
        the TIA) shall deliver to the Trustee, within 120 days after the end of each
        fiscal year of the Company, an Officers’ Certificate stating that in the course
        of the performance by the signers of their duties as Officers of the Company
        they would normally have knowledge of any Default and whether or not the
        signers
        know of any Default that occurred during such period. If they do have such
        knowledge, the certificate shall describe the Default, its status and what
        action the Company is taking or proposes to take with respect thereto. The
        Company also shall comply with Section 314(a)(4) of the TIA.

       

      (2)  The
        Company shall deliver to the Trustee, as soon as possible and in any event
        within five days after any Officer becomes 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 propose to take with respect
        thereto.

       

      SECTION
        3.04.  Taxes.
        The
        Company shall pay, and shall cause each of its Restricted Subsidiaries to
        pay,
        prior to delinquency, all material taxes, assessments, and governmental levies
        except such as are contested in good faith and by appropriate proceedings
        or
        where the failure to effect such payment is not likely to result in a material
        adverse effect on the Company and its Restricted Subsidiaries taken as a
        whole.

       

      SECTION
        3.05.  Stay,
        Extension and Usury Laws.
        The
        Company and each of the Guarantors covenant (to the extent that they may
        lawfully do so) that they shall 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, that
        may
        affect the covenants or the performance of this Indenture; and the Company
        and
        each of the Guarantors (to the extent that they may lawfully do so) hereby
        expressly waive all benefit or advantage of any such law, and covenant that
        they
        shall not, by resort to any such law, hinder, delay or impede the execution
        of
        any power herein granted to the Trustee, but shall suffer and permit the
        execution of every such power as though no such law has been
        enacted.

       

      SECTION
        3.06.  Restricted
        Payments.
        The
        Company shall not, and shall not cause or permit any of its Restricted
        Subsidiaries to, directly or indirectly:

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

      declare
        or pay any dividend or make any distribution (other than dividends or
        distributions payable solely in Qualified Capital Stock of the Company) on
        or in
        respect of shares of the Company’s Capital Stock to holders of such Capital
        Stock (including any payment or distribution in connection with any merger
        or
        acquisition);

       

      (1)  purchase,
        redeem or otherwise acquire or retire for value any Capital Stock of the
        Company
        or any warrants, rights or options to purchase or acquire shares of any class
        of
        such Capital Stock (other than in exchange for Qualified Capital Stock of
        the
        Company);

       

      (2)  make
        any
        principal payment on, purchase, defease, redeem, prepay, decrease or otherwise
        acquire or retire for value, prior to any scheduled final maturity, scheduled
        repayment or scheduled sinking fund payment, any Subordinated Indebtedness
        (other than Indebtedness owed by the Company or any Restricted Subsidiary
        to
        another Restricted Subsidiary or the Company) of the Company or any of its
        Restricted Subsidiaries (other than principal payments on, purchases,
        defeasance, redemption, prepayment, decreases or other acquisition or retirement
        for value of such Subordinated Indebtedness due within one year of the date
        of
        such principal payment, purchase, defeasance, redemption, prepayment, decrease
        or other acquisition or retirement for value); or

       

      (3)  make
        any
        Restricted Investment;

       

      if
        at the
        time of such action (each, a “Restricted
        Payment”)
        or
        immediately after giving effect thereto:

       

      (i)  a
        Default
        or an Event of Default shall have occurred and be continuing or would result
        therefrom;

       

      (ii)  the
        Company is not able to incur at least $1.00 of additional Non-Funding
        Indebtedness (other than Permitted Indebtedness) in compliance with Section
        4.10; or

       

      (iii)  the
        aggregate amount of Restricted Payments (including such proposed Restricted
        Payment) made subsequent to the Measurement Date (the amount expended for
        such
        purposes, if other than in cash, being the Fair Market Value of the property
        comprising such Restricted Payment) shall exceed the sum of:

       

      (u) the
        sum
        of (A) 95% of the cumulative Consolidated Net Income of the Company (or,
        while
        the Company is not a REIT, 50% of the cumulative Consolidated Net Income
        of the
        Company) (or if cumulative Consolidated Net Income shall be a loss, minus
        100%
        of such loss) earned during the period from April 1, 2006 through the last
        day of the Company’s most recent fiscal quarter which ends prior to the date
        (the “Reference
        Date”)
        on
        which the Restricted Payment occurs (treating such period as a single accounting
        period) plus
        (B)
        while the Company is a REIT, amortization expense associated with Mortgage
        Servicing Rights of the Company for such period which amount under this clause
        (B) shall not exceed, together with the amount in clause (A), the amount
        that
        the senior management of the Company determines in good faith to be necessary
        to
        be paid as a dividend or distribution for the Company to maintain its status
        as
        a REIT under the Code; plus

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

       

      (v) 100%
        of
        the aggregate net cash proceeds and 100% of the aggregate Fair Market Value
        of
        property other than cash, in each case received by the Company from any Person
        (other than a Subsidiary of the Company) from the issuance and sale subsequent
        to the Measurement Date and on or prior to the Reference Date of Qualified
        Capital Stock of the Company (other than net cash proceeds received from
        the
        issuance or sale of such Qualified Capital Stock to (a) a Subsidiary of the
        Company or (b) an employee stock ownership plan, option plan or similar trust
        (to the extent such sale to an employee stock ownership plan, option plan
        or
        similar trust is financed by loans from or is guaranteed by the Company or
        any
        Restricted Subsidiary unless such loans have been repaid with cash on or
        prior
        to the Reference Date); plus

       

      (w) without
        duplication of any amounts included in clause (iii)(v) above, 100% of the
        aggregate net cash proceeds of any equity contribution received by the Company
        from a holder of the Company’s Capital Stock subsequent to the Measurement Date;
        plus

       

      (x) without
        duplication of any amounts included in clause (iii)(v) above, the amount
        by
        which Indebtedness of the Company or any Restricted Subsidiary of the Company
        (other than Subordinated Indebtedness) is reduced on the Company’s consolidated
        balance sheet upon the conversion or exchange of such Indebtedness into
        Qualified Capital Stock of the Company subsequent to the Measurement Date;
        plus

       

      (y) 100%
        of
        the aggregate amount of net reduction in Restricted Investments made by the
        Company or any of its Restricted Subsidiaries in any Person resulting
        from:

       

      (A) repurchases,
        repayments or redemptions of such Restricted Investments by such Person,
        proceeds realized upon the sale of such Restricted Investment (other than
        a sale
        to a Restricted Subsidiary of the Company), repayments of loans or advances
        or
        other transfers of assets (including by way of dividend, interest payment
        or
        distribution) by such Person to the Company or any Restricted Subsidiary;
        and

       

      (B) the
        sale
        (other than to the Company or a Restricted Subsidiary) of the Capital Stock
        of
        an Unrestricted Subsidiary or a distribution or a dividend from an Unrestricted
        Subsidiary or an interest payment by an Unrestricted Subsidiary;
        plus

       

      (z) upon
        the
        redesignation of any Unrestricted Subsidiary as a Restricted Subsidiary,
        the
        Fair Market Value of the Investments of the Company or a Restricted Subsidiary
        (other than such Restricted Subsidiary) in such Unrestricted Subsidiary as
        of
        the date of such redesignation.

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

      The
        preceding provisions do not prohibit:

       

      (1)  the
        payment of any dividend (i) within 60 days after the date of declaration
        of such
        dividend if the dividend would have been permitted on the date of declaration
        or
        (ii) to the extent such dividend was declared prior to the Measurement
        Date;

       

      (2)  the
        acquisition of any shares of Capital Stock of the Company, either (i) solely
        in
        exchange for shares of Qualified Capital Stock of the Company or (ii) through
        the application of net proceeds of a substantially concurrent sale for cash
        (other than to a Subsidiary of the Company or an employee stock ownership
        plan
        or similar trust to the extent such sale to an employee stock ownership plan
        or
        similar trust is financed by loans from or is guaranteed by the Company or
        any
        Restricted Subsidiary (unless such loans have been repaid with cash on or
        prior
        to the Reference Date)) of shares of Qualified Capital Stock of the Company;
        provided
        that the
        net cash proceeds from such sale of Qualified Capital Stock shall be excluded
        from clause (iii)(v) above;

       

      (3)  the
        acquisition of any Subordinated Indebtedness of the Company or any of its
        Restricted Subsidiaries either (i) solely in exchange for shares of Qualified
        Capital Stock of the Company, or (ii) through the application of net proceeds
        of
        a substantially concurrent sale for cash (other than to a Subsidiary of the
        Company or an employee stock ownership plan or similar trust to the extent
        such
        sale to an employee stock ownership plan or similar trust is financed by
        loans
        from or is guaranteed by the Company or any Restricted Subsidiary (unless
        such
        loans have been repaid with cash on or prior to the Reference Date)) of (a)
        shares of Qualified Capital Stock of the Company; provided
        that the
        net cash proceeds from such sale of Qualified Capital Stock will be excluded
        from clause (iii)(v) above, or (b) Refinancing Indebtedness;

       

      (4)  repurchases
        by the Company of Common Stock of the Company from current or former employees,
        officers and directors or consultant of the Company or any of its Restricted
        Subsidiaries or their authorized representatives (a) upon the death,
        disability or termination of employment of such employees, officers or directors
        or (b) pursuant to any management equity subscription agreement, stock
        option agreement, stock ownership plan, put agreement, stockholder agreement
        or
        similar agreement that may be in effect from time to time, in an aggregate
        amount for clauses (a) and (b) not to exceed $2.0 million in any calendar
        year
        (with unused amounts in any calendar year (before giving effect to any
        carryforward) being carried over to the next succeeding (but not any other)
        calendar year);

       

      (5)  if
        no
        Event of Default or payment Default shall have occurred and be
        continuing,
        the
        declaration or payment,
        from
        time to time,
        by the
        Company of any dividend or distribution so
        long
        as the amount of such dividends and distributions (taken together with all
        other
        dividends and distributions made by the Company with respect to the applicable
        taxable year) does not exceed the amount that
        the
        senior management of the Company determines in good faith to be necessary
        for
        the
        Company to
        (x)
        maintain its status as a REIT under
        the
        Code and
        (y)
        reduce excise taxes (in
        an
        amount not to exceed the amount of such excise taxes that would have been
        imposed for such taxable year if no such dividend or distribution had been
        made); provided
        that the
        senior management’s d

       

      (6)  termination
        of such amount shall be based on senior management’s estimates of the Company’s
        REIT taxable income for the taxable year to which such dividend or distribution
        relates; and

       

      (7)  repurchases
        of (A) Capital Stock deemed to occur upon exercise of stock options if such
        Capital Stock represents a portion of the exercise price of such options,
        (B) Capital Stock from directors, officers, and employees in connection
        with the vesting of such person’s restricted stock to the extent necessary to
        allow such employees to pay taxes in connection with restricted stock that
        has
        vested and (C) Capital Stock or options to purchase Capital Stock deemed
        to
        occur in connection with the exercise of stock options to the extent necessary
        to pay applicable withholding taxes;

       

      (8)  cash
        payments in lieu of the issuance of fractional shares in connection with
        the
        exercise of warrants, options or other securities convertible into or
        exchangeable for Capital Stock of the Company;

       

      (9)  Restricted
        Payments in an amount not to exceed $35.0 million; and

       

      (10)  the
        purchase, repurchase, redemption, defeasance or other acquisition or retirement
        for value of any Subordinated Indebtedness (i) at a purchase price not greater
        than 101% of the principal amount of such Subordinated Indebtedness in the
        event
        of a Change of Control in accordance with provisions similar to Section 4.16
        or
        (ii) at a purchase price not greater than 100% of the principal amount thereof
        in accordance with provisions similar to Section 4.11; provided
        that
        prior to or simultaneously with such purchase, repurchase, redemption,
        defeasance or other acquisition or retirement for value, the Company has
        made
        the Change of Control Offer or Net Proceeds Offer, as applicable, as provided
        in
        Section 4.11 with respect to the Notes and has completed the repurchase or
        redemption of all Notes validly tendered for payment in connection with such
        Change of Control Offer or Net Proceeds Offer.

       

      In
        determining the aggregate amount of Restricted Payments made subsequent to
        the
        Measurement Date in accordance with clause (iii) of the immediately preceding
        paragraph, amounts expended pursuant to clauses (1)(i), (2)(ii), (4), (5),
        (6)(B), (8) and (9) shall be included in such calculation and the amounts
        under
        (1)(ii), 2(i), 3, 6(A), 6(C) and (7) and the dividend declared by the Company
        on
        March 24, 2006 to be paid on or about April 28, 2006 shall be excluded.

       

      The
        amount of all Restricted Payments (other than cash) shall be the Fair Market
        Value on the date of such Restricted Payment of the asset(s) or securities
        proposed to be paid, transferred or issued by the Company or such Restricted
        Subsidiary, as the case may be, pursuant to such Restricted Payment. Not
        later
        than the date on which the Company is required to deliver financial statements
        pursuant to Section 4.03 with respect to the fiscal quarter during which
        any
        Restricted Payment is made, the Company shall deliver to the Trustee an
        officers’ certificate stating that such Restricted Payment is permitted and
        setting forth the basis upon which the calculations required by this Section
        4.07 were computed, together with a copy of any fairness opinion or appraisal
        required by this Indenture.

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

      In
        making
        the computations required by clause (iii)(u) of the first paragraph of this
        Section 4.07, the Company may rely on projections prepared in good faith
        by
        senior management of the Company for the fiscal quarter ending on the Reference
        Date, whether or not financial statements for such period are internally
        available.

       

      SECTION
        3.07.  Maintenance
        of Total Unencumbered Assets.
        The
        Total
        Unencumbered Assets of the Company and its Consolidated Restricted Subsidiaries
        shall be at least 200% of the aggregate principal amount of the Unsecured
        Indebtedness of the Company and its Consolidated Restricted Subsidiaries,
        in
        each case as of the last day of any fiscal quarter of the Company during
        the
        term of the Notes (it being understood that compliance with this Section
        shall
        be determined on the date financial statements are required to be delivered
        with
        respect to such fiscal quarter pursuant to Section 4.03 or, if earlier, the
        date
        such financial statements are actually delivered).

       

      SECTION
        3.08.  Dividend
        and Other Payment Restrictions Affecting Restricted Subsidiaries.
        The
        Company will not, and will not cause or permit any of its Restricted
        Subsidiaries to, directly or indirectly, create or otherwise cause or permit
        to
        exist or become effective any consensual encumbrance or restriction on the
        ability of any of its Restricted Subsidiaries to:

       

      (1)  pay
        dividends or make any other distributions on or in respect of its Capital
        Stock
        (it being understood that the priority of any Preferred Stock in receiving
        dividends or liquidating distributions prior to dividends or liquidating
        distributions being paid on Common Stock shall not be deemed a restriction
        on
        the ability to make distributions on Capital Stock);

       

      (2)  make
        loans or advances or to pay any Indebtedness or other obligation owed to
        the
        Company or any other Restricted Subsidiary of the Company (it being understood
        that the subordination of loans or advances made to the Company or any
        Restricted Subsidiary to other Indebtedness Incurred by the Company or any
        Restricted Subsidiary shall not be deemed a restriction on the ability to
        make
        loans or advances); or

       

      (3)  transfer
        any of its property or assets to the Company or any other Restricted Subsidiary
        of the Company,

       

      except
        for such encumbrances or restrictions existing under or by reason
        of:

       

      (a)  applicable
        law, rule, regulation or order (including any restrictions imposed by Ginnie
        Mae
        or Fannie Mae or similar organizations);

       

      (b)  this
        Indenture and the Notes;

       

      (c)  customary
        non-assignment provisions of any contract or any lease governing a leasehold
        interest of any Restricted Subsidiary of the Company;

       

      (d)  any
        instrument governing Acquired Indebtedness, which encumbrance or restriction
        is
        not applicable to any Person, or the properties or assets of any Person,
        other
        than the Person or the properties or assets of the Person so
        acquired;

       

      (e)  (i)
        agreements existing on the Measurement Date including each Warehouse Facility
        and agreements governing other Indebtedness existing on the Measurement Date
        to
        the extent and in the manner such agreements are in effect on the Measurement
        Date and (ii) any new Indebtedness incurred after the Measurement Date in
        accordance with this Indenture on terms that (A) are not less favorable to
        the
        Company than the Warehouse Facility and agreements governing other Indebtedness
        existing on the Measurement Date in any material respect as determined by
        the
        senior management in their reasonable and good faith judgment or (B) are
        not
        materially more restrictive, taken as a whole, than customary provisions
        in
        comparable financings and that the Board of Directors determines (as evidenced
        by a resolution of the Board of Directors) in good faith would not reasonably
        be
        expected to impair the ability of the Company to make scheduled payments
        of
        interest on and principal of the Notes as and when due;

       

      (f)  provisions
        of any agreement governing Indebtedness incurred in accordance with this
        Indenture that impose such encumbrances or restrictions upon the occurrence
        of a
        default or failure to meet financial covenants or conditions under the
        agreement;

       

      (g)  restrictions
        on the transfer of assets (other than cash) held in a Restricted Subsidiary
        of
        the Company imposed under any agreement governing Indebtedness incurred in
        accordance with this Indenture;

       

      (h)  provisions
        of any agreement governing Indebtedness incurred in accordance with this
        Indenture that require a Restricted Subsidiary to service its debt obligations
        before making dividends, distributions or advancements in respect of its
        Capital
        Stock;

       

      (i)  an
        agreement governing Indebtedness incurred to Refinance all or part of the
        Indebtedness issued, assumed or incurred pursuant to an agreement referred
        to in
        clause (b), (d) or (e) above; provided,
        however,
        that
        the provisions relating to such encumbrance or restriction contained in any
        such
        Indebtedness are not materially less favorable to the Company in any material
        respect as determined by the senior management of the Company in their
        reasonable and good faith judgment than the provisions relating to such
        encumbrance or restriction contained in agreements referred to in such clause
        (b), (d) or (e);

       

      (j)  agreements
        governing any Securitization Vehicle or group of Securitization Vehicles
        (and
        limited to such Securitization Vehicle or group of Securitization Vehicles)
        that, in the good faith determination of the Board of Directors or senior
        management of the Company, are necessary or advisable to effect a Securitization
        after the Measurement Date; 

       

      (k)  with
        respect to clause (3) only, (i) any security agreements or mortgages securing
        Indebtedness of a Restricted Subsidiary to the extent such encumbrance or
        restriction restricts the transfer of the property subject to such security
        agreements or mortgages or (ii) any transfer of, agreement to transfer, option
        or right with respect to, or Lien

       

      (l)  on,
        any
        property or assets of the Company or any Restricted Subsidiary not otherwise
        prohibited by this Indenture;

       

      (m)  contracts
        for the sale of assets, including any restriction with respect to a Restricted
        Subsidiary imposed pursuant to an agreement entered into for the sale or
        disposition of all or substantially all of the Capital Stock or assets of
        such
        Restricted Subsidiary pending the closing of such sale or disposition;
        or

       

      (n)  any
        requirement to obtain Board of Directors or independent board member approval
        prior to payment of any dividend or other distribution.

       

      SECTION
        3.09.  Limitation
        on Incurrence of Additional Non-Funding Indebtedness.
        The
        Company will not, and will not permit any of its Restricted Subsidiaries
        to,
        directly or indirectly, create, incur, assume, guarantee, become liable,
        contingently or otherwise, with respect to, or otherwise become responsible
        for
        payment of (collectively, “incur”)
        any
        Non-Funding Indebtedness (including Acquired Indebtedness) other than Permitted
        Indebtedness.

       

      Notwithstanding
        the foregoing, if no Default or Event of Default shall have occurred and
        be
        continuing at the time of or as a consequence of the incurrence of any such
        Non-Funding Indebtedness (including Acquired Indebtedness), the Company or
        any
        of its Restricted Subsidiaries may incur Non-Funding Indebtedness (including
        Acquired Indebtedness), in each case if on the date of the incurrence of
        such
        Non-Funding Indebtedness (including Acquired Indebtedness), after giving
        effect
        to the incurrence thereof and the use of proceeds thereof:

       

      (a)  the
        Consolidated Non-Funding Indebtedness Interest Coverage Ratio of the Company
        is
        greater than 3.25 to 1.0; and

       

      (b)  the
        ratio
        of Consolidated Tangible Net Worth of the Company to the aggregate amount
        of
        Non-Funding Indebtedness outstanding on a consolidated basis is greater than
        2.0
        to 1.0.

       

      If
        the
        Company or any Restricted Subsidiary incurs any Non-Funding Indebtedness
        on any
        date and also incurs any Permitted Indebtedness on such date, such Permitted
        Indebtedness shall be disregarded for purposes of calculating the ratios
        described above on such date.

       

      For
        purposes of determining compliance with this Section 4.10, in the event that
        an
        item of Indebtedness meets the criteria of more than one of the categories
        of
        Permitted Indebtedness described in clauses (1) through (13) of the
        definition thereof or is entitled to be incurred pursuant to the second
        paragraph of this Section 4.10, the Company shall, in its sole discretion,
        classify (and from time to time reclassify) such item of Indebtedness in
        any
        manner that complies with this Section 4.10. The Company will be entitled
        to
        divide and classify (and from time to time reclassify) an item of Indebtedness
        in more than one of the types of Indebtedness described in clauses (1) through
        (13) of the definition thereof and the second paragraph of this Section 4.10.
        Accrual of interest, accretion or amortization of original issue discount,
        the
        payment of interest on any Indebtedness in the form of additional Indebtedness
        with the same terms, and the payment of dividends on Disqualified Capital
        Stock
        or other Preferred Stock in the form

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

      of
        additional shares of the same class of Disqualified Capital Stock or other
        Preferred Stock will not be deemed to be an incurrence of Indebtedness or
        an
        issuance of Disqualified Capital Stock for purposes of this Section
        4.10.

       

      For
        purposes of determining compliance with any U.S. dollar-denominated restriction
        on the incurrence of Indebtedness, the U.S. dollar-equivalent principal amount
        of Indebtedness denominated in a foreign currency shall be calculated based
        on
        the relevant currency exchange rate in effect on the date such Indebtedness
        was
        incurred, in the case of term Indebtedness, or first committed, in the case
        of
        revolving credit Indebtedness; provided
        that if
        such Indebtedness is incurred to refinance other Indebtedness denominated
        in a
        foreign currency, and such refinancing would cause the applicable U.S.
        dollar-denominated restriction to be exceeded if calculated at the relevant
        currency exchange rate in effect on the date of such refinancing, such U.S.
        dollar-denominated restriction shall be deemed not to have been exceeded
        so long
        as the principal amount of such refinancing Indebtedness does not exceed
        the
        principal amount of such Indebtedness being refinanced. Notwithstanding any
        other provision of this Section 4.10, the maximum amount of Indebtedness
        that
        the Company may incur shall not be deemed to be exceeded solely as a result
        of
        fluctuations in the exchange rate of currencies. The principal amount of
        any
        Indebtedness incurred to refinance other Indebtedness, if incurred in a
        different currency from the Indebtedness being refinanced, shall be calculated
        based on the currency exchange rate applicable to the currencies in which
        such
        Refinancing Indebtedness is denominated that is in effect on the date of
        such
        refinancing.

       

      SECTION
        3.10.  Limitation
        on Asset Sales.
        The
        Company will not, and will not permit any of its Restricted Subsidiaries
        to,
        consummate an Asset Sale unless:

       

      (1)  the
        Company or such Restricted Subsidiary receives consideration at the time
        of such
        Asset Sale at least equal to the Fair Market Value of the assets sold or
        otherwise disposed of;

       

      (2)  at
        least
        75% of the consideration received by the Company or the Restricted Subsidiary,
        as the case may be, from such Asset Sale shall be in the form of cash, Cash
        Equivalents and/or Replacement Assets (as defined in clause 3(b) below) and/or
        any securities, notes or other obligations received by the Company or any
        such
        Restricted Subsidiary from such transferee that are converted by the Company
        or
        such Restricted Subsidiary into cash (to the extent of the cash received)
        within
        60 days after receipt and is received at the time of such disposition;
provided
        that the
        amount of any liabilities of the Company or any such Restricted Subsidiary
        as
        shown on the Company’s or such Restricted Subsidiary’s most recent balance sheet
        (other than liabilities that are by their terms subordinated to the Notes
        or any
        Guarantee of a Guarantor) that are assumed by the transferee of any such
        assets
        shall be deemed to be cash for purposes of this provision; and

       

      (3)  except
        as
        provided in the next paragraph upon the consummation of an Asset Sale, the
        Company shall apply, or cause such Restricted Subsidiary to apply, the Net
        Cash
        Proceeds relating to such Asset Sale within 360 days of receipt
        thereof:

       

      (4)  to
        permanently reduce Indebtedness under any Non-Funding Credit Facility (including
        revolving and/or term Indebtedness) and, in the case of any such Indebtedness
        under any revolving credit facility, effect a dollar-for-dollar reduction
        in the
        commitments under such revolving credit facility;

       

      (a)  to
        make
        an investment in properties and assets that replace the properties and assets
        that were the subject of such Asset Sale or in properties and assets (including
        Capital Stock) that will be used in any Related Business (“Replacement
        Assets”);
        and/or

       

      (b)  a
        combination of prepayment and investment permitted by the foregoing
        clauses(3)(a) and (b).

       

      On
        the
        361st day after an Asset Sale or such earlier date, if any, as the Board
        of
        Directors of the Company or of such Restricted Subsidiary determines not to
        apply the Net Cash Proceeds relating to such Asset Sale as set forth in clauses
        (3)(a), (3)(b) and/or (3)(c) of the preceding paragraph (each, a “Net
        Proceeds Offer Trigger Date”),
        such
        aggregate amount of Net Cash Proceeds which have not been applied on or before
        such Net Proceeds Offer Trigger Date as permitted in clauses (3)(a), (3)(b)
        and/or (3)(c) of the preceding paragraph (each a “Net
        Proceeds Offer Amount”)
        shall
        be applied by the Company or such Restricted Subsidiary to make an offer
        to
        purchase to all Holders (the “Net
        Proceeds Offer”)
        on a
        date (the “Net
        Proceeds Offer Payment Date”)
        not
        less than 30 nor more than 45 days following the applicable Net Proceeds
        Offer
        Trigger Date, and to all holders of Pari Passu Indebtedness in accordance
        with
        provisions governing any Pari Passu Indebtedness requiring the Company or
        such
        Restricted Subsidiary to prepay, purchase or redeem such Pari Passu Indebtedness
        with the proceeds from any Asset Sales (or offer to do so), from all Holders
        (and holders of any such Pari Passu Indebtedness) on a pro rata basis, that
        amount of Notes (and Pari Passu Indebtedness) equal to the Net Proceeds Offer
        Amount at a price (the “Net
        Proceeds Offer Price”)
        equal
        to 100% of the principal amount of the Notes (and Pari Passu Indebtedness)
        to be
        purchased, plus accrued and unpaid interest thereon, if any, to the date
        of
        purchase; provided,
        however,
        that
        (i) if at any time any non-cash consideration received by the Company or
        any
        Restricted Subsidiary of the Company, as the case may be, in connection with
        any
        Asset Sale is converted into or sold or otherwise disposed of for cash (other
        than interest received with respect to any such non cash consideration),
        then
        such conversion or disposition shall be deemed to constitute an Asset Sale
        hereunder and the Net Cash Proceeds thereof shall be applied in accordance
        with
        this Section 4.11 and (ii) the Net Proceeds Offer Price for any such Pari
        Passu
        Indebtedness may exceed 100% of principal amount plus accrued and unpaid
        interest thereon to the date of purchase if so provided under the relevant
        documentation, in which case the Company shall use other funds to pay such
        excess, including any Net Cash Proceeds that would otherwise remain after
        consummation of the Net Proceeds Offer.

       

      The
        Company may defer the Net Proceeds Offer until there is an aggregate unutilized
        Net Proceeds Offer Amount equal to or in excess of $15.0 million resulting
        from
        one or more Asset Sales (at which time, the entire unutilized Net Proceeds
        Offer
        Amount, and not just the amount in excess of $15.0 million, shall be applied
        as
        required pursuant to this paragraph). Pending the final application of any
        Net
        Cash Proceeds, the Company or any Restricted Subsidiary may temporarily reduce
        borrowings under any revolving credit facility, including any Warehouse
        Facility, or otherwise temporarily invest such Net Cash Proceeds in any manner
        that is not prohibited by this Indenture.

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

       

      To
        the
        extent Holders properly tender Notes and holders of Pari Passu Indebtedness
        properly tender such Pari Passu Indebtedness in an aggregate principal amount
        exceeding the Net Proceeds Offer Amount, the tendered Notes and Pari Passu
        Indebtedness will be purchased, repaid or redeemed out of Net Cash Proceeds
        on a
        pro rata basis based on the aggregate principal amounts of Notes and Pari
        Passu
        Indebtedness tendered (and the Trustee shall select the tendered Notes of
        tendering Holders on a pro rata basis based on the amount of Notes tendered),
        provided
        that the
        Net Proceeds Offer Price of any Pari Passu Indebtedness for this purpose
        shall
        be deemed equal to 100% of principal amount plus accrued and unpaid interest
        thereon to the date of purchase. A Net Proceeds Offer shall remain open for
        a
        period of 20 business days or such longer period as may be required by law.
        If
        any Net Cash Proceeds remain after the consummation of any Net Proceeds Offer,
        the Company may use those Net Cash Proceeds for any purpose not otherwise
        prohibited by this Indenture. Upon completion of each Net Proceeds Offer,
        the
        amount of Net Cash Proceeds will be reset at zero.

       

      In
        the
        event that the Company shall be required to commence an offer to Holders
        to
        purchase Notes pursuant to this Section 4.11, it shall follow the
        procedures specified in Section 3.09.

       

      SECTION
        3.11.  Additional
        Restricted Subsidiary Guarantees.
        If
        the
        Company or any of its Restricted Subsidiaries transfers or causes to be
        transferred, in one transaction or a series of related transactions, any
        property to any Domestic Restricted Subsidiary (other than a Securitization
        Vehicle or an Excluded Subsidiary) that is not a Guarantor, or if the Company
        or
        any of its Restricted Subsidiaries shall organize, acquire or otherwise invest
        in another Domestic Restricted Subsidiary (other than a Securitization Vehicle
        or an Excluded Subsidiary) having total assets with a book value in excess
        of
        $500,000, then such transferee, acquired or other Domestic Restricted Subsidiary
        shall:

       

      (1)  execute
        and deliver to the Trustee a supplemental indenture in form reasonably
        satisfactory to the Trustee pursuant to which such Domestic Restricted
        Subsidiary shall unconditionally guarantee all of the Company’s obligations
        under the Notes and the Indenture on the terms set forth in the Indenture;
        and

       

      (2)  deliver
        to the Trustee an opinion of counsel that such supplemental indenture has
        been
        duly authorized, executed and delivered by such Domestic Restricted Subsidiary
        and constitutes a legal, valid, binding and enforceable obligation of such
        Domestic Restricted Subsidiary subject to customary exceptions.

       

      Thereafter,
        such Domestic Restricted Subsidiary shall be a Guarantor for all purposes
        of the
        Indenture until released from its Guarantee in accordance with the provisions
        of
        the Indenture.

       

      SECTION
        3.12.  Transactions
        with Affiliates.
        The
        Company will not, and will not permit any of its Restricted Subsidiaries
        to,
        directly or indirectly, enter into or permit to exist any transaction (including
        the purchase, sale, lease or exchange of any property or the
        rendering

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

      of
        any
        service) with, or for the benefit of, any of its Affiliates (each an
“Affiliate
        Transaction”),
        other
        than:

       

      (1)  Affiliate
        Transactions otherwise permitted in this Section 4.13; and 

       

      (2)  Affiliate
        Transactions on terms that are no less favorable to the Company or such
        Restricted Subsidiary than those that might reasonably have been obtained
        in a
        comparable transaction at such time on an arm’s-length basis from a Person that
        is not an Affiliate of the Company or such Restricted Subsidiary.

       

      All
        Affiliate Transactions (and each series of related Affiliate Transactions
        which
        are part of a common plan) involving aggregate payments or other property
        with a
        fair market value in excess of $5.0 million shall be approved by the Board
        of
        Directors of the Company or of such Restricted Subsidiary, as the case may
        be,
        such approval to be evidenced by a Board Resolution stating that such Board
        of
        Directors has determined that such transaction complies with the foregoing
        provisions. If the Company or any Restricted Subsidiary of the Company enters
        into an Affiliate Transaction (or a series of related Affiliate Transactions
        which are part of a common plan) that involves an aggregate fair market value
        of
        more than $15.0 million, the Company or such Restricted Subsidiary, as the
        case
        may be, shall, prior to the consummation thereof, obtain a favorable opinion
        as
        to the fairness of such transaction or series of related transactions to
        the
        Company or the relevant Restricted Subsidiary, as the case may be, from a
        financial point of view, from an investment banking, appraisal or accounting
        firm, in each case of national standing, and file the same with the
        Trustee.

       

      The
        restrictions set forth in the first two paragraphs of this Section 4.13 shall
        not apply to:

       

      (1)  reasonable
        fees and compensation paid to and employee benefits plans or arrangements
        and
        indemnity provided to or on behalf of, officers, directors, employees or
        consultants of the Company or any Restricted Subsidiary of the Company as
        determined in good faith by the Company’s Board of Directors or senior
        management;

       

      (2)  transactions
        between or among the Company and any of its Restricted Subsidiaries or between
        or among such Restricted Subsidiaries; provided
        such
        transactions are not otherwise prohibited by this Indenture;

       

      (3)  any
        agreement as in effect as of the Measurement Date or any amendment thereto
        or
        any transaction contemplated thereby (including pursuant to any amendment
        thereto) in any replacement agreement thereto so long as any such amendment
        or
        replacement agreement is not more disadvantageous to the Holders in any material
        respect than the original agreement as in effect on the Measurement Date
        as
        determined in good faith by the Board of Directors or senior management of
        the
        Company;

       

      (4)  Restricted
        Payments and Permitted Investments permitted by this Indenture;

       

      (5)  transactions
        between the Company or one of its Restricted Subsidiaries and any Person
        in
        which the Company or one of its Restricted Subsidiaries has made an Investment
        and such Person is an Affiliate solely because of such Investment;

       

      (6)  any
        issuance of Capital Stock of or capital contributions to the
        Company;

       

      (7)  transactions
        with customers, clients, suppliers, or purchasers or sellers of goods or
        services, in each case in the ordinary course of business and otherwise in
        compliance with the terms of this Indenture, which are fair to the Company
        or
        its Restricted Subsidiaries, or are on terms at least as favorable as might
        reasonably have been obtained at such time from an unaffiliated party, in
        each
        case in the reasonable determination of the Board of Directors or the senior
        management thereof; and

       

      (8)  transactions
        between the Company or one of its Restricted Subsidiaries and any Securitization
        Vehicle in the ordinary course of business.

       

      SECTION
        3.13.  Liens.
        The
        Company will
        not,
        and will not cause or permit any of its Restricted Subsidiaries to, directly
        or
        indirectly, create, incur, assume or permit or suffer to exist any Lien of
        any
        kind on the assets of the Company or any of its Restricted Subsidiaries securing
        Indebtedness of the Company or any of its Restricted Subsidiaries
        unless:

       

      (1)  in
        the
        case of Liens securing Indebtedness of the Company or any Guarantor that
        is
        expressly subordinate or junior in right of payment to the Notes, or the
        Guarantee of such Guarantor, as the case may be, the Notes or the Guarantee
        of
        such Guarantor, as the case may be, are secured by a Lien on such property,
        assets or proceeds that is senior in priority to such Liens; and

       

      (2)  in
        all
        other cases, the Notes or the Guarantee of such Guarantor, as the case may
        be,
        are equally and ratably secured except for:

       

      (a)  Liens
        existing as of the Measurement Date to the extent and in the manner such
        Liens
        are in effect on the Measurement Date;

       

      (b)  Liens
        securing the Notes and the Guarantees;

       

      (c)  Liens
        securing Refinancing Indebtedness that is incurred to Refinance any Indebtedness
        that has been secured by a Lien permitted under this Indenture and that has
        been
        incurred in accordance with the provisions of this Indenture; provided,
        however,
        that
        such Liens do not extend to or cover any property or assets of the Company
        not
        securing the Indebtedness so Refinanced; and

       

      (d)  Permitted
        Liens.

       

      SECTION
        3.14.  Existence;
        Conduct of Business.

       

      (1)  Subject
        to Article V, the Company shall do or cause to be done all things necessary
        to preserve and keep in full force and effect (i) its corporate existence,
        and the corp

       

      (2)  rate,
        partnership or other existence of each of its Subsidiaries, in accordance
        with
        the respective organizational documents (as the same may be amended from
        time to
        time) of the Company or any such Restricted Subsidiary and (ii) the rights
        (charter and statutory), licenses and franchises of the Company and its
        Restricted Subsidiaries; provided,
        however,
        that
        the Company shall not be required to preserve any such right, license or
        franchise, or the corporate, partnership or other existence of any of its
        Restricted Subsidiaries, if the senior management of the Company determines
        in
        good faith that the preservation thereof is no longer desirable in the conduct
        of the business of the Company and its Restricted Subsidiaries, taken as
        a
        whole, and that the loss thereof is not likely to result in a material adverse
        effect on the Company and its Restricted Subsidiaries taken as a whole;
provided,
        further,
        that
        the Company shall not be required to maintain its status as a REIT.

       

      (3)  The
        Company and its Restricted Subsidiaries will engage primarily in the business
        of
        originating, purchasing, retaining, selling and servicing loans and other
        activities related, ancillary or complementary to or arising out of those
        activities.

       

      SECTION
        3.15.  Repurchase
        at the Option of Holders upon a Change of Control.
        Upon
        the
        occurrence of a Change of Control and unless the Company has previously
        exercised its right to redeem all of the outstanding Notes pursuant to Section
        3.07, each Holder shall have the right to require that the Company purchase
        all
        or a portion of such Holder’s Notes pursuant to the offer described below (the
“Change
        of Control Offer”),
        at a
        purchase price equal to (i) 101% of the principal amount thereof plus (ii)
        accrued and unpaid interest to the date of purchase (such sum, the “Change
        of Control Payment”).

       

      Within
        30
        days following the date upon which the Change of Control occurred, the Company
        must send, by first class mail, a notice to each Holder, with a copy to the
        Trustee, which notice shall govern the terms of the Change of Control Offer.
        Such notice shall state:

       

      (1)  that
        a
        Change of Control Offer is being made pursuant to this Section 4.16 and that
        all
        Notes validly tendered and not withdrawn pursuant to such Change of Control
        Offer will be accepted for payment by the Company;

       

      (2)  the
        purchase price and the purchase date, which must be no earlier than 30 days
        nor
        later than 60 days from the date such notice is mailed, other than as may
        be
        required by law (the “Change
        of Control Payment Date”);

       

      (3)  that
        any
        Note not tendered or accepted for payment shall continue to accrue
        interest;

       

      (4)  that,
        unless the Company defaults in the payment of the Change of Control Payment,
        all
        Notes accepted for payment pursuant to the Change of Control Offer shall
        cease
        to accrue interest after the Change of Control Payment Date;

       

      (5)  that
        Holders electing to have a Note purchased pursuant to a Change of Control
        Offer
        shall be required to surrender the Note, with the form entitled “Option of
        Holder to Elect Purchase” on the reverse of the Note completed, to the Paying
        Agent at

       

      (6)  the
        address specified in the notice prior to the close of business on the third
        business day prior to the Change of Control Payment Date; 

       

      (7)  that
        Holders shall be entitled to withdraw their election if the Paying Agent
        receives, not later than the close of business on the second Business Day
        preceding the Change of Control Payment Date, a telegram, telex, facsimile
        transmission or letter setting forth the name of the Holder, the principal
        amount of Notes delivered for purchase, and a statement that such Holder
        is
        withdrawing his election to have the Notes purchased;

       

      (8)  that
        Holders whose Notes are being purchased only in part shall be issued new
        Notes
        equal in principal amount to the unpurchased portion of the Notes surrendered,
        which unpurchased portion must be equal to at least $2,000 in principal amount
        and integral multiple of $1,000.

       

      The
        Company will comply with the requirements of Rule 14e-1 under the Exchange
        Act (or any successor rules) and any other securities laws and regulations
        thereunder to the extent such laws and regulations are applicable in connection
        with the repurchase of the Notes pursuant to a Change of Control Offer. To
        the
        extent that the provisions of any securities laws or regulations conflict
        with
        the provisions of this Section 4.16, the Company shall comply with such
        securities laws and regulations and shall not be deemed to have breached
        its
        obligations under this Section 4.16. 

       

      On
        the
        Change of Control Payment Date, the Company shall, to the extent
        lawful:

       

      (1)  accept
        for payment all Notes or portions thereof properly tendered pursuant to the
        Change of Control Offer;

       

      (2)  deposit
        with the Paying Agent an amount equal to the Change of Control Payment in
        respect of all Notes or portions thereof so tendered; and

       

      (3)  deliver
        or cause to be delivered to the Trustee the Notes so accepted together with
        an
        Officers’ Certificate stating the aggregate principal amount of Notes or
        portions thereof being purchased by the Company.

       

      Notwithstanding
        anything to the contrary in this Indenture, if the Change of Control Payment
        Date is on or after an interest record date and on or before the related
        interest payment date, any accrued and unpaid interest shall be paid to the
        Person in whose name a Note is registered on the Change of Control Payment
        Date.

       

      The
        Paying Agent shall promptly mail to each Holder of Notes so tendered the
        Change
        of Control Payment for such Notes, and the Trustee shall promptly authenticate
        and mail (or cause to be transferred by book entry) to each Holder a new
        Note
        equal in principal amount to any unpurchased portion of the Notes surrendered,
        if any; provided
        that
        each such new Note shall be in a minimum principal amount of $2,000 and an
        integral multiple of $1,000. The Company shall publicly announce the results
        of
        the Change of Control Offer on or as soon as practicable after the Change
        of
        Control Payment Date.

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

      The
        provisions described above that require the Company to make a Change of Control
        Offer following a Change of Control shall be applicable regardless of whether
        or
        not any other provisions in this Indenture are applicable.

       

      Notwithstanding
        any other provision of this Section 4.16, the Company shall not be required
        to make a Change of Control Offer upon a Change of Control if a third party
        makes the Change of Control Offer in the manner, at the times and otherwise
        in
        compliance with the requirements set forth in this Indenture applicable to
        a
        Change of Control Offer made by the Company and purchases all such Notes
        validly
        tendered and not withdrawn under such Change of Control Offer.

       

      SECTION
        3.16.  Excess
        Cash Flow Offer.

       

      (a)  If
        the
        Company’s Excess Cash Flow for the two consecutive fiscal quarter period ending
        March 31, 2007 and any two fiscal quarter period thereafter (measured
        semi-annually) (each such two fiscal quarter period, an “Excess
        Cash Flow Period”)
        exceeds zero, the Company will, on or before the 60th day (the “Trigger
        Date”)
        following the last day of such Excess Cash Flow Period (subject to paragraph
        (e)
        below), be required to make an offer to all Holders of Notes to purchase
        the
        principal amount of Notes equal to the lesser of the amount of Excess Cash
        Flow
        for such Excess Cash Flow Period and $10.0 million (the “Excess
        Cash Flow Offer Amount”).

       

      Each
        offer to purchase Notes pursuant to this Section 4.17 (each, an “Excess
        Cash Flow Offer”)
        shall
        be made to each Holder of Notes outstanding at the time of such offer, shall
        offer to purchase Notes at a purchase price of 100% of the principal amount
        thereof on the date of purchase, plus accrued and unpaid interest, if any,
        to
        the date of purchase and shall remain open for a period of not less than
        20
        Business Days (or any longer period as is required by law).

       

      (b)  If
        the
        Company is required to make an Excess Cash Flow Offer pursuant to this Section
        4.17, the Company will mail a notice (the date on which such notice is mailed
        being referred to as the “Excess
        Cash Flow Offer Date”)
        of
        such Excess Cash Flow Offer, on or before the Trigger Date, to each Holder
        with
        a copy to the Trustee stating:

       

      (1)  that
        the
        Company is offering to purchase Notes in an amount equal to the Excess Cash
        Flow
        Offer Amount at a purchase price in cash equal to 100% of the principal amount
        thereof on the date of purchase, plus accrued and unpaid interest, if any,
        to
        the date of purchase (subject to the right of Holders of record on the relevant
        date to receive interest on the relevant interest payment date);

       

      (2)  the
        purchase date (which shall be no earlier than 30 days nor later than 60 days
        from the Excess Cash Flow Offer Date); and

       

      (3)  the
        instructions, as determined by the Company, consistent with this Section
        4.17,
        that a Holder must follow in order to tender its Notes.

       

      (4)  If
        the
        aggregate purchase price of the Notes tendered exceeds the amount so offered,
        the Company will select the Notes to be purchased on a pro
        rata
        basis
        but in minimum denominations of $2,000 principal amount and integral multiples
        of $1,000. 

       

      (c)  Upon
        surrender of a Note that is purchased in part, the Company shall issue and,
        upon
        the Company’s written request, the Trustee shall authenticate for the Holder at
        the expense of the Company a new Note equal in principal amount to the
        unredeemed portion of the Note surrendered; provided
        that
        each new Note will be in a minimum principal amount of $2,000 and an integral
        multiple of $1,000. 

       

      (d)  Notwithstanding
        the foregoing, the Company may, upon providing the Trustee with an Officers’
Certificate so stating, suspend an Excess Cash Flow Offer or postpone making
        an
        Excess Cash Flow Offer, in each case for a period not to exceed 60 consecutive
        days, if (1) an event or circumstance occurs and is continuing as a result
        of
        which the written materials distributed (or any document incorporated by
        reference therein) to Holders of Notes in connection with an Excess Cash
        Flow
        Offer would, in the good faith judgment of the Board of Directors contain
        an
        untrue statement of a material fact or omit to state a material fact necessary
        in order to make the statements therein, in light of the circumstances under
        which they were made, not misleading and (2) (i) the Board of Directors
        determines in its good faith judgment that the disclosure of such event or
        circumstance at such time would constitute material non-public information,
        is
        not otherwise required to be filed with or furnished to the SEC and would
        have a
        material adverse effect on the Company’s business, operations or prospects or
        (ii) the Board of Directors otherwise determines, in its good faith judgment,
        that the disclosure would constitute material non-public information, is
        not
        otherwise required to be filed with or furnished to with the SEC and would
        relate to a material business transaction or development.

       

      (e)  The
        Company will comply with the requirements of Section 14(e) under the Exchange
        Act and any other securities laws and regulations thereunder to the extent
        such
        laws and regulations are applicable in connection with the repurchase of
        Notes
        pursuant to this Section 4.17. To the extent that the provisions of any
        securities laws or regulations conflict with provisions of this Section 4.17,
        the Company shall comply with the applicable securities laws and regulations
        and
        shall not be deemed to have breached its obligations under this Section 4.17
        by
        virtue thereof.

       

      SECTION
        3.17.  [Reserved]

       

      

       

      SECTION
        3.18.  Application
        of Suspension Covenants.
        Notwithstanding anything to the contrary in this Indenture, during the
        Suspension Period, the Company and its Restricted Subsidiaries will not be
        subject to the provisions of Sections 4.07, 4.08, 4.09, 4.10, 4.11, 4.13,
        4.14, 4.15(2), 4.17 and clause (2) of Section 5.01 (collectively, the
“Suspendable
        Covenants”).
        All
        other covenants and provisions of this Indenture will apply at all times
        so long
        as any Notes remain outstanding.

       

      For
        purposes of calculating the amount available to be made as Restricted Payments
        under clause (iii) of the first paragraph of Section 4.07 following a Suspension
        Period, calculations under the applicable clause will be made with reference
        to
        such Measurement Date as set forth in that clause. Accordingly, subject to
        the
        third to last paragraph of Section 4.07, Restricted Payments made during
        the
        Suspension Period will reduce the amount available to be made as

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

       Restricted
        Payments under clause (iii) and the items specified in subclauses (u) through
        (z) of clause (iii) that occur during the Suspension Period will increase
        the
        amount available to be made as Restricted Payments under clause (iii), in
        each
        case following the Reversion Date. Any Restricted Payments made during the
        Suspension Period that are of the type described in clause (4) under the
        second
        paragraph of Section 4.07 shall reduce the amounts permitted to be incurred
        under such clause (4) on the Reversion Date. In addition, during the Suspension
        Period, all references herein to “Restricted Subsidiaries” or “Unrestricted
        Subsidiaries” will be deemed to be references to “Subsidiaries” and the
        definitions of “Restricted Subsidiary” and “Unrestricted Subsidiary” shall be
        deemed deleted. Also, any encumbrance or restriction of the type referred
        to in
        Section 4.09 incurred during the Suspension Period shall not result in a
        Default
        when such covenant is reinstituted.

       

      For
        purposes of Section 4.11, on the Reversion Date, the Net Proceeds Offer Amount
        will be reset at zero.

       

      ARTICLE
        IV  

       

       

      SUCCESSORS

       

      SECTION
        4.01.  Merger,
        Consolidation, or Sale of Assets.
        The
        Company will not, in a single transaction or series of related transactions,
        consolidate or merge with or into any Person, or sell, assign, transfer,
        lease,
        convey or otherwise dispose of (or cause or permit any Restricted Subsidiary
        of
        the Company to sell, assign, transfer, lease, convey or otherwise dispose
        of)
        all or substantially all of the Company’s assets (determined on a consolidated
        basis for the Company and the Company’s Restricted Subsidiaries) whether as an
        entirety or substantially as an entirety to any Person unless:

       

      (1)  either:

       

      (a)  the
        Company shall be the surviving or continuing entity; or

       

      (b)  the
        Person (if other than the Company) formed by or surviving such consolidation
        or
        into which the Company is merged or the Person which acquires by sale,
        assignment, transfer, lease, conveyance or other disposition the properties
        and
        assets of the Company and of the Company’s Restricted Subsidiaries substantially
        as an entirety (the “Surviving
        Entity”):

       

      (i)  shall
        be
        a corporation, limited partnership, trust or limited liability company organized
        and validly existing under the laws of the United States or any State thereof
        or
        the District of Columbia; provided
        that if
        such surviving person is not a corporation, a corporate Wholly Owned Restricted
        Subsidiary of such Person organized under the laws of the United States,
        any
        state or the District of Columbia becomes a co-issuer of the Notes in connection
        therewith; and

       

      (ii)  shall
        expressly assume, by supplemental indenture (in form and substance satisfactory
        to the Trustee), executed and delivered to the Trustee, the due and punctual
        payment of the principal of and premium, if any, and interest on all of the
        Notes and the performance of every covenant of the Notes, the Indenture and
        the
        Registration Rights Agreement on the part of the Company to be performed
        or
        observed;

       

      (2)  immediately
        after giving effect to such transaction and the assumption contemplated by
        clause (1)(b)(ii) above (including giving effect to any Acquired
        Indebtedness and other Indebtedness incurred in connection with or in respect
        of
        such transaction), the Company or such Surviving Entity, as the case may
        be,
        shall be able to incur at least $1.00 of additional Non-Funding Indebtedness
        (other than Permitted Indebtedness) in compliance with Section
        4.10;

       

      (3)  immediately
        before and immediately after giving effect to such transaction and the
        assumption contemplated by clause (1)(b)(ii) above (including giving effect
        to any Acquired Indebtedness and other Indebtedness incurred and any Lien
        granted in connection with or in respect of the transaction), no Default
        or
        Event of Default shall have occurred or be continuing; and

       

      (4)  the
        Company or the Surviving Entity shall have delivered to the Trustee an officers’
certificate and an opinion of counsel, each stating that such consolidation,
        merger, sale, assignment, transfer, lease, conveyance or other disposition
        and,
        if a supplemental indenture is required in connection with such transaction,
        such supplemental indenture comply with the applicable provisions of this
        Indenture and that all conditions precedent in this Indenture relating to
        such
        transaction have been satisfied.

       

      For
        purposes of the foregoing, the transfer (by lease, assignment, sale or
        otherwise, in a single transaction or series of transactions) of all or
        substantially all of the properties or assets of one or more Restricted
        Subsidiaries of the Company the Capital Stock of which constitutes all or
        substantially all of the properties and assets of the Company shall be deemed
        to
        be the transfer of all or substantially all of the properties and assets
        of the
        Company.

       

      Notwithstanding
        the foregoing:

       

      (a)  clauses
        (2) and (4) of this Section 5.01 will not apply to the consolidation or merger
        of the Company with or into a Restricted Subsidiary or the consolidation
        or
        merger of a Restricted Subsidiary with or into the Company; and

       

      (b)  clause
        (2) of this Section 5.01 will not apply to any merger or consolidation of
        the
        Company with an Affiliate formed solely for the purpose of reforming the
        Company
        in another jurisdiction or solely for the purpose of facilitating the formation
        of a holding company.

       

      SECTION
        4.02.  Successor
        Corporation Substituted.
        Upon
        any consolidation or merger, or any sale, assignment, transfer, lease,
        conveyance or other disposition of all or substantially all of the assets
        of the
        Company in accordance with Section 5.01, the successor Person

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

      formed
        by
        such consolidation or into which the Company is merged or to which such transfer
        is made shall succeed to and (except in the case of a lease) be substituted
        for,
        and may exercise every right and power of, such Company under this Indenture
        and
        the Notes with the same effect as if such successor Person had been named
        therein as such Company, and
        (except in the case of a lease) the Company, and in the case of a transfer
        of
        the Company’s assets (other than the Capital Stock of its Restricted
        Subsidiaries), the Guarantors (except in the case of a transfer of less than
        all
        of the consolidated assets of the Company) shall be released from the
        obligations under the Notes and the Guarantees.

       

      SECTION
        4.03.  Merger
        of Guarantors.
        Each
        Guarantor (other than any Guarantor whose Guarantee is to be released in
        accordance with the terms of the Guarantee and the Indenture) will not, and
        the
        Company will not cause or permit any Guarantor to, consolidate with or merge
        with or into any Person other than the Company, any other Guarantor or an
        Affiliate incorporated solely for the purpose of reincorporating such Guarantor
        in another jurisdiction unless:

       

      (i)  the
        entity formed by or surviving any such consolidation or merger (if other
        than
        such Guarantor) is a corporation, limited partnership, trust or limited
        liability company organized and existing under the laws of the United States
        or
        any State thereof or the District of Columbia;

       

      (ii)  subject
        to Section 5.02, entity assumes by supplemental indenture all of the obligations
        of the Guarantor on this Indenture, the Guarantee or the Registration Rights
        Agreement; and

       

      (iii)  immediately
        after giving effect to such transaction, no Default or Event of Default shall
        have occurred and be continuing.

       

      ARTICLE
        V  

       

       

      DEFAULTS
        AND REMEDIES

       

      SECTION
        5.01.  Events
        of Default.
        Each of
        the following is an “Event
        of Default”
with
        respect to the Notes:

       

      (1)  the
        failure to pay interest on any Notes when the same becomes due and payable
        and
        the default continues for a period of 30 days (whether or not prohibited
        by
        Article XIII);

       

      (2)  the
        failure to pay the principal on any Notes when such principal becomes due
        and
        payable, at maturity, upon redemption or otherwise (including the failure
        to
        make a payment to purchase Notes tendered pursuant to a Change of Control
        Offer
        or a Net Proceeds Offer) (whether or not prohibited by Article
        XIII);

       

      (3)  a
        default
        in the observance or performance of any other covenant or agreement contained
        in
        this Indenture and such default continues for a period of 30 days after the
        Company receives written notice specifying the default (and demanding
        that

       

      (4)  such
        default be remedied) from the Trustee or the Holders of at least 25% of the
        outstanding principal amount of the Notes (except in the case of a default
        with
        respect to Section 5.01 as it relates to the Company, which will constitute
        an
        Event of Default with such notice requirement but without such passage of
        time
        requirement);

       

      (5)  the
        failure to pay at final maturity (giving effect to any applicable grace periods
        and any extensions thereof) the principal amount of any Indebtedness (other
        than
        Funding Indebtedness) of the Company or any Restricted Subsidiary of the
        Company, or the acceleration of the final stated maturity of any such
        Indebtedness (which acceleration is not rescinded, annulled or otherwise
        cured
        within 20 days of receipt by the Company or such Restricted Subsidiary of
        notice
        of any such acceleration) if the aggregate principal amount of such
        Indebtedness, together with the principal amount of any other such Indebtedness
        in default for failure to pay principal at final maturity or which has been
        accelerated, aggregates $5.0 million or more at any time;

       

      (6)  one
        or
        more judgments in an aggregate amount in excess of $5.0 million shall have
        been
        rendered against the Company or any of its Restricted Subsidiaries (other
        than a
        judgment or judgments in respect of Funding Indebtedness where the judgment
        creditor (in its capacity as such) does not have rights against assets of
        the
        Company and its Restricted Subsidiaries other than those assets that secure
        such
        Funding Indebtedness) and such judgments remain undischarged, unpaid or unstayed
        for a period of 60 days after such judgment or judgments become final and
        non-appealable (other than any judgments to the extent covered by an insurance
        company that has not contested coverage of such judgment or judgments in
        writing);

       

      (7)  the
        Company or any of its Significant Subsidiaries pursuant to or within the
        meaning
        of any Bankruptcy Law:

       

      (a)  commences
        a voluntary case,

       

      (b)  consents
        to the entry of an order for relief against it in an involuntary
        case,

       

      (c)  consents
        to the appointment of a custodian of it or for all or substantially all of
        its
        property, or

       

      (d)  makes
        a
        general assignment for the benefit of its creditors;

       

      (8)  a
        court
        of competent jurisdiction enters an order or decree under any Bankruptcy
        Law
        that:

       

      (a)  is
        for
        relief against the Company or any of its Significant Subsidiaries in an
        involuntary case;

       

      (b)  appoints
        a custodian of the Company or any of its Significant Subsidiaries or for
        all or
        substantially all of the property of the Company or any of its Significant
        Subsidiaries; or

       

      (c)  orders
        the liquidation of the Company or any of its Significant
        Subsidiaries;

       

      and
        the
        order or decree remains unstayed and in effect for 60 consecutive days;
        or

       

      (9)  any
        Guarantee of a Significant Subsidiary ceases to be in full force and effect
        or
        any Guarantee of a Significant Subsidiary is declared to be null and void
        and
        unenforceable or any Guarantee of a Significant Subsidiary is found to be
        invalid or any Significant Subsidiary that is a Guarantor denies its liability
        under its Guarantee (other than by reason of release of a Guarantor in
        accordance with the terms of this Indenture).

       

      SECTION
        5.02.  Acceleration.
        

       

      (a)  If
        an
        Event of Default (other than an Event of Default specified in clause (6)
        or (7)
        above with respect to the Company) shall occur and be continuing, the Trustee
        or
        the Holders of at least 25% in the then outstanding principal amount of the
        Notes may declare the principal of and accrued interest on all the then
        outstanding Notes to be due and payable by notice in writing to the Company
        and
        the Trustee specifying the respective Event of Default and that it is a “notice
        of acceleration” (the “Acceleration
        Notice”),
        and
        the same shall become immediately due and payable.

       

      (b) At
        any
        time after a declaration of acceleration with respect to the Notes as described
        in Section 6.02(a), the Holders of a majority in the then outstanding
        principal amount of the Notes may rescind and cancel such declaration and
        its
        consequences: (i) if the rescission would not conflict with any judgment or
        decree; (ii) if all existing Events of Default have been cured or waived
        except nonpayment of principal or interest that has become due solely because
        of
        the acceleration; (iii) to the extent the payment of such interest is
        lawful, interest on overdue installments of interest and overdue principal,
        which has become due otherwise than by such declaration of acceleration,
        has
        been paid; and (iv) if the Company has paid the Trustee its reasonable
        compensation and reimbursed the Trustee for its expenses, disbursements and
        advances. No such rescission shall affect any subsequent Default or impair
        any
        right consequent thereto.

       

      (c) If
        an
        Event of Default specified in clause (6) or (7) above with respect to the
        Company occurs and is continuing, then all unpaid principal of, and premium,
        if
        any, and accrued and unpaid interest on all of the then outstanding Notes
        shall
        become and be immediately due and payable without any declaration or other
        act
        on the part of the Trustee or any Holder.

       

      SECTION
        5.03.  Other
        Remedies.
        If an
        Event of Default occurs and is continuing, the Trustee may pursue any available
        remedy to collect the payment of principal, premium, if any, and interest
        on the
        Notes or to enforce the performance of any provision of the Notes or this
        Indenture.

       

      The
        Trustee may maintain a proceeding even if it does not possess any of the
        Notes
        or does not produce any of them in the proceeding. A delay or omission by
        the
        Trustee or any Holder of a Note 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.

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

      Waiver
        of
        Existing Defaults.
        Holders
        of not less than a majority in aggregate principal amount of the then
        outstanding Notes by notice to the Trustee may on behalf of the Holders of
        all
        of the Notes waive any existing Default or Event of Default and its consequences
        under this Indenture except a continuing Event of Default in the payment
        of
        interest on, or the principal of, the Notes. Upon any such waiver, such Default
        shall cease to exist, and any Event of Default arising therefrom shall be
        deemed
        to have been cured for every purpose of this Indenture; but no such waiver
        shall
        extend to any subsequent or other Default or impair any right consequent
        thereon.

       

      SECTION
        5.04.  Control
        by Majority.
        Holders
        of a majority in principal amount of the then outstanding Notes may direct
        the
        time, method and place of conducting any proceeding for exercising any remedy
        available to the Trustee or exercising any trust or power conferred on it.
        However, the Trustee may refuse to follow any direction that conflicts with
        law
        or this Indenture that the Trustee determines may be prejudicial to the rights
        of other Holders of Notes or that may involve the Trustee in personal liability.
        The Trustee may take any other action which it deems proper that is not
        inconsistent with any such directive.

       

      SECTION
        5.05.  Limitation
        on Suits.
        Subject
        to Section 6.07 a Holder of a Note may pursue a remedy with respect to this
        Indenture or the Notes only if:

       

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

       

      (b)  the
        Holders of at least 25% in principal amount of the then outstanding Notes
        make a
        written request to the Trustee to pursue the remedy;

       

      (c)  such
        Holder of a Note or Holders of Notes 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 Notes do not give the Trustee a direction inconsistent with the
        request.

       

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

       

      SECTION
        5.06.  Rights
        of Holders of Notes to Receive Payment.
        Notwithstanding any other provision of this Indenture, the right of any Holder
        of a Note to receive payment of principal, premium, if any, and interest
        on the
        Note, on or after the respective due dates expressed in the Note (including
        in
        connection with an offer to purchase), 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 such Holder.

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

      Collection
        Suit by Trustee.
        If an
        Event of Default specified in Section 6.01(1) or (2) 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 of, premium, if any, and interest remaining unpaid on the Notes
        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
        5.07.  Trustee
        May File Proofs of Claim.
        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 of the
        Notes allowed in any judicial proceedings relative to the Company (or any
        other
        obligor upon the Notes), 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 7.07. To the extent that the payment of any such compensation,
        expenses, disbursements and advances of the Trustee, its agents and counsel,
        and
        any other amounts due the Trustee under Section 7.07 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 that the Holders 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 Notes or the rights of any Holder, or to authorize
        the
        Trustee to vote in respect of the claim of any Holder in any such
        proceeding.

       

      SECTION
        5.08.  Priorities.
        If the
        Trustee collects any money pursuant to this Article, it shall pay out the
        money
        in the following order:

       

      First:
        to
        the Trustee, its agents and attorneys for amounts due under Section 7.07,
        including payment of all compensation, expense and liabilities incurred,
        and all
        advances made, by the Trustee and the costs and expenses of
        collection;

       

      Second:
        to Holders of Senior Indebtedness of a Servicing Guarantor to the extent
        of such
        Senior Indebtedness and to the extent required by Article XIII
        hereof;

       

      Third:
        to
        Holders of Notes for amounts due and unpaid on the Notes for interest, without
        preference or priority of any kind, according to the amounts due and payable
        on
        the Notes for interest;

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

      Fourth:
        to Holders of Notes for amounts due and unpaid on the Notes for principal
        and
        premium, without preference or priority of any kind, according to the amounts
        due and payable on the Notes for principal and premium, respectively;
        and

       

      Fifth:
        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
        of
        Notes pursuant to this Section 6.10 and Section 1.05.

       

      SECTION
        5.09.  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 and expenses,
        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 of a Note pursuant
        to
        Section 6.07, or a suit by Holders of more than 10% in principal amount of
        the then outstanding Notes.

       

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

       

      SECTION
        5.11.  Rights
        and Remedies Cumulative.
        Except
        as otherwise provided with respect to the replacement or payment of mutilated,
        destroyed, lost or stolen Notes in Section 2.07 hereof, no right or remedy
        herein conferred upon or reserved to the Trustee or to the Holders is intended
        to be exclusive of any other right or remedy, and every right and remedy
        shall,
        to the extent permitted by law, be cumulative and in addition to every other
        right and remedy given hereunder or now or hereafter existing at law or in
        equity or otherwise. The assertion or employment of any right or remedy
        hereunder, or otherwise, shall not prevent the concurrent assertion or
        employment of any other appropriate right or remedy.

       

      SECTION
        5.12.  Delay
        and Omission Not Waiver.
        No
        delay or omission of the Trustee or of any Holder of any Note to exercise
        any
        right or remedy accruing upon any Event of Default shall impair any such
        right
        or remedy or constitute a waiver of any such Event of Default or an acquiescence
        therein. Every right and remedy given by this Article or by law to the Trustee
        or to the Holders may be exercised from time to time, and as often as may
        be
        deemed expedient, by the Trustee or by the Holders, as the case may
        be.

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

       

       

      TRUSTEE

       

      SECTION
        5.13.  Duties
        of Trustee.

       

      (1)  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 its exercise, as a prudent person would exercise or
        use
        under the circumstances in the conduct of such person’s own
        affairs.

       

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

       

      (a)  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;
        and

       

      (b)  in
        the
        absence of bad faith on its part, the Trustee may conclusively rely, as to
        the
        truth of the statements and the correctness of the opinions expressed therein,
        upon certificates or opinions required to be furnished to the Trustee hereunder
        and conforming to the requirements of this Indenture. However, the Trustee
        shall
        examine the certificates and opinions to determine whether or not they conform
        to the requirements of this Indenture (but need not confirm or investigate
        the
        accuracy of any mathematical calculations or other facts stated
        therein).

       

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

       

      (a)  this
        paragraph does not limit the effect of paragraph (2) of this
        Section;

       

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

       

      (c)  the
        Trustee shall not be liable 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 6.05.

       

      (4)  Whether
        or not therein expressly so provided, every provision of this Indenture that
        in
        any way relates to the Trustee is subject to paragraphs (1), (2), and (3)
        of this Section 7.01.

       

      (5)  No
        provision of this Indenture shall require the Trustee to expend or risk its
        own
        funds or incur any liability. The Trustee shall be under no obligation to
        exercise any of its rights and powers under this Indenture at the request
        of any
        Holders, unless such Holder shall

       

      (6)  have
        offered to the Trustee security and indemnity satisfactory to it against
        any
        loss, liability, claim, damage or expense.

       

      (7)  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. Money held in trust by
        the
        Trustee need not be segregated from other funds except to the extent required
        by
        law.

       

      (8)  The
        Trustee shall not be bound to make any investigation into the facts or matters
        stated in any resolution, certificate, statement, instrument, opinion, report,
        notice, request, direction, consent, order, bond, debenture or other paper
        or
        documents.

       

      SECTION
        5.14.  Rights
        of Trustee.

       

      (1)  The
        Trustee may conclusively rely upon any document (whether in its original
        or
        facsimile form) believed by it to be genuine and to have been signed or
        presented by the proper Person. The Trustee need not investigate any fact
        or
        matter stated in the document but the Trustee, in its discretion, may make
        such
        further inquiry or investigation into such facts or matters as it may see
        fit,
        and, if the Trustee shall determine to make such further inquiry or
        investigation, it shall be entitled to examine the books, records and premises
        of the Company, personally or by agent or attorney at the sole cost of the
        Company and shall incur no liability or additional liability of any kind
        by
        reason of such inquiry or investigation.

       

      (2)  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 of its own selection and the written advice or opinion 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.

       

      (3)  The
        Trustee may act through its attorneys and agents and shall not be responsible
        for the misconduct or negligence of any agent appointed with due
        care.

       

      (4)  The
        Trustee shall not be liable for any action it takes or omits to take in good
        faith that it believes to be authorized or within the rights or powers conferred
        upon it by this Indenture.

       

      (5)  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 such Company.

       

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

       

      (7)  The
        Trustee shall not be charged with knowledge of any Default or Event of Default
        unless either (a) a Responsible Officer of the Trustee shall have actual
        knowledge of such Default or Event of Default or (b) written notice of such
        Default or Event of Default shall have been given to and received by a
        Responsible Officer of the Trustee by the Company or any Holder. 

       

      (8)  In
        no
        event shall the Trustee be responsible or liable for special, indirect or
        consequential loss or damage of any kind whatsoever (including loss of profit)
        irrespective of whether the Trustee has been advised of the likelihood of
        such
        loss or damage and regardless of the form of action.

       

      (9)  The
        rights, privileges, protections, immunities and benefits given to the Trustee,
        including its right to be indemnified, are extended to, and shall be enforceable
        by, the Trustee in each of its capacities hereunder, and each agent, custodian
        and other Person employed by the Trustee to act hereunder.

       

      (10)  In
        the
        event the Company is required to pay Special Interest, the Company will provide
        written notice to the Trustee of the Company’s obligation to pay Special
        Interest no later than 15 days prior to the next Interest Payment Date, which
        notice shall set forth the amount of the Special Interest to be paid by the
        Company. The Trustee shall not at any time be under any duty or responsibility
        to any Holders to determine whether the Special Interest is payable and the
        amount thereof.

       

      SECTION
        5.15.  Individual
        Rights of Trustee.
        The
        Trustee in its individual or any other capacity may become the owner or pledgee
        of Notes and may otherwise deal with the Company or any Affiliate of the
        Company
        with the same rights it would have if it were not Trustee. However, in the
        event
        that the Trustee acquires any conflicting interest it must eliminate such
        conflict within 90 days, apply to the SEC for permission to continue as trustee
        or resign. Any Agent may do the same with like rights and duties. The Trustee
        is
        also subject to Sections 7.10 and 7.11.

       

      SECTION
        5.16.  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 Notes, it shall not be accountable
        for the Company’s use of the proceeds from the Notes or any money paid to the
        Company or upon the Company’s direction under any provision of this Indenture,
        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 Notes or any other document
        in connection with the sale of the Notes or pursuant to this Indenture other
        than its certificate of authentication.

       

      SECTION
        5.17.  Notice
        of Defaults.
        If a
        Default or 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 of
        Notes a
        notice of the Default or Event of Default within 90 days after the Trustee
        acquires knowledge thereof. Except in the case of a Default or Event of Default
        in payment of principal of, premium, if any, or interest on any Note, the
        Trustee may withhold the notice if and so long as a committee of its Responsible
        Officers in good faith determines that withholding the notice is in the
        interests of the Holders of the Notes.

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

      Reports
        by Trustee to Holders of the Notes.
        By May
        15th of each year, and for so long as Notes remain outstanding, the Trustee
        shall mail to the Holders of the Notes a brief report dated as of such reporting
        date that complies with TIA Section 313(a) (but if no event described in
        TIA
        Section 313(a) has occurred within the twelve months preceding the reporting
        date, no report need be transmitted). The Trustee also shall comply with
        TIA
        Section 313(b)(2). The Trustee shall also transmit by mail all reports as
        required by TIA Section 313(c).

       

      A
        copy of
        each report at the time of its mailing to the Holders of Notes shall be mailed
        to the Company and filed with the SEC and each stock exchange on which the
        Notes
        are listed in accordance with TIA Section 313(d). The Company shall promptly
        notify the Trustee when the Notes are listed on any stock exchange.

       

      SECTION
        5.18.  Compensation
        and Indemnity.
        The
        Company, shall pay to the Trustee from time to time reasonable compensation
        for
        its acceptance of this Indenture, any Registration Rights Agreement and any
        other document delivered in connection with any of such agreements and its
        services under any of such agreements or other documents, as separately agreed
        in writing. 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.

       

      The
        Company and Guarantors shall, jointly and severally, indemnify the Trustee
        against any and all losses, liabilities, claims, damages or expenses (including
        reasonable legal fees and expenses) incurred by it arising out of or in
        connection with the acceptance or administration of its duties under this
        Indenture, including the costs and expenses of enforcing this Indenture,
        any
        Registration Rights Agreement and any other document delivered in connection
        therewith (including this Section 7.07) and defending itself against any
        claim (whether asserted by the Company, any Guarantor or any Holder or any
        other
        person) or liability in connection with the exercise or performance of any
        of
        its powers or duties hereunder, except to the extent any such loss, liability
        or
        expense is determined to have been caused by its own gross negligence or
        willful
        misconduct. 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. The Company shall defend
        the
        claim and the Trustee shall cooperate in the defense. The Trustee may have
        separate counsel and the Company shall pay the reasonable fees and expenses
        of
        such counsel. The Company need not pay for any settlement made without its
        consent, which consent shall not be unreasonably withheld.

       

      The
        obligations of the Company under this Section 7.07 shall survive
        resignation or removal of the Trustee and the satisfaction and discharge
        of this
        Indenture.

       

      To
        secure
        the Company’s payment obligations in this Section, the Trustee shall have a Lien
        prior to the Notes on all money or property held or collected by the Trustee,
        except that held in trust to pay principal and interest on particular Notes.
        Such Lien shall survive the resignation or removal of the Trustee and the
        satisfaction and discharge of this Indenture.

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

      When
        the
        Trustee incurs expenses or renders services after an Event of Default specified
        in Section 6.01(7) or (8) occurs, the expenses and the compensation for the
        services (including the fees and expenses of its agents and counsel) are
        intended to constitute expenses of administration under any Bankruptcy
        Law.

       

      The
        Trustee shall comply with the provisions of TIA Section 313(b)(2) to the
        extent
        applicable.

       

      SECTION
        5.19.  Replacement
        of Trustee.
        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.

       

      The
        Trustee may resign in writing at any time and be discharged from the trust
        hereby created by so notifying the Company. The Holders of a majority in
        principal amount of the then outstanding Notes may remove the Trustee by
        so
        notifying the Trustee and the Company in writing. The Company may remove
        the
        Trustee if:

       

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

       

      (b)  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;

       

      (c)  a
        custodian or public officer takes charge of the Trustee or its property;
        or

       

      (d)  the
        Trustee becomes incapable of acting.

       

      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. Within
        one year after the successor Trustee takes office, the Holders of a majority
        in
        principal amount of the then outstanding Notes may appoint a successor Trustee
        to replace the successor Trustee appointed by the Company.

       

      If
        a
        successor Trustee does not take office within 60 days after the retiring
        Trustee
        resigns or is removed, the retiring Trustee, the Company, or the Holders
        of at
        least 10% in principal amount of the then outstanding Notes may petition
        at the
        expense of the Company any court of competent jurisdiction for the appointment
        of a successor Trustee.

       

      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.

       

      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 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 7.07. Notwithstanding replacement of the
        Trustee pursuant to this Section 7.08, the Company’s obligations under
        Section 7.07 shall continue for the benefit of the retiring
        Trustee.

       

      SECTION
        5.20.  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
        5.21.  Eligibility;
        Disqualification.
        There
        shall at all times be a Trustee hereunder that is a corporation organized
        and
        doing business under the laws of the United States of America or of any state
        thereof that is authorized under such laws to exercise corporate trustee
        power,
        that is subject to supervision or examination by federal or state authorities
        and that has a combined capital and surplus of at least $100 million as set
        forth in its most recent published annual report of condition.

       

      This
        Indenture shall always have a Trustee who satisfies the requirements of TIA
        Sections 310(a)(1), (2) and (5). The Trustee is subject to TIA Section
        310(b).

       

      SECTION
        5.22.  Preferential
        Collection of Claims Against the Company.
        The
        Trustee is subject to TIA Section 311(a), excluding any creditor relationship
        listed in TIA Section 311(b). A Trustee who has resigned or been removed
        shall
        be subject to TIA Section 311(a) to the extent indicated therein.

       

      ARTICLE
        VI  

       

       

      LEGAL
        DEFEASANCE AND COVENANT DEFEASANCE

       

      SECTION
        6.01.  Option
        to Effect Legal Defeasance or Covenant Defeasance.
        The
        Company and the Guarantors may, at any time, elect to have either
        Section 8.02 or 8.03 be applied to the outstanding Notes and the related
        Guarantees upon compliance with the conditions set forth below in this
        Article VIII.

       

      SECTION
        6.02.  Legal
        Defeasance and Discharge.
        Upon
        the
        exercise by the Company and the Guarantors under Section 8.01 of the option
        applicable to this Section 8.02, the Company and the Guarantors shall,
        subject to the satisfaction of the conditions set forth in Section 8.04, be
        deemed to have been discharged from their obligations applicable to the
        outstanding Notes and the related Guarantees on the date the conditions set
        forth below are satisfied (hereinafter, “Legal
        Defeasance”).
        For
        this purpose, Legal Defeasance means that the Company and the Guarantors
        shall
        be deemed to have paid and discharged the entire Indebtedness represented
        by the
        outstanding Notes and the Guarantees, which shall thereafter be deemed to
        be
“outstanding” only for the purposes of Section 8.05 and the other Sections
        of this Indenture referred to in (1) and (2) below, and to have satisfied
        all
        their other obligations under such Notes, this Indenture, the related Guarantees
        and any Registration Rights Agreement (and the Trustee, on demand of and
        at the
        expense of the Company, shall execute proper instruments acknowledging the
        same), except for the following provisions which shall survive until otherwise
        terminated or discharged hereunder:

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

      the
        rights of Holders to receive payments in respect of the principal of, premium,
        if any, and interest on the Notes when such payments are due from the trust
        referred to below;

       

      (1)  the
        Company’s obligations with respect to the Notes concerning issuing temporary
        Notes, registration of Notes, mutilated, destroyed, lost or stolen Notes
        and the
        maintenance of an office or agency for payments held in trust;

       

      (2)  the
        rights, powers, trust, duties and immunities of the Trustee and the Company’s
        obligations in connection therewith; and

       

      (3)  the
        Legal
        Defeasance provisions of this Indenture.

       

      Subject
        to compliance with this Article VIII, the Company may exercise its option
        under this Section 8.02 notwithstanding the prior exercise of its option
        under Section 8.03.

       

      SECTION
        6.03.  Covenant
        Defeasance.
        Upon
        the
        exercise by the Company and the Guarantors under Section 8.01 of the option
        applicable to this Section 8.03, the Company and the Guarantors shall,
        subject to the satisfaction of the conditions set forth in Section 8.04, be
        released from their obligations applicable to Notes under the covenants
        contained in Sections 4.03, 4.07, 4.08, 4.09, 4.10, 4.11, 4.12, 4.13, 4.14,
        4.15(2), 4.16, 4.17, 5.01(2), 5.03 and with respect to outstanding Notes
        and the
        related Guarantees on and after the date the conditions set forth in
        Section 8.04 are satisfied (hereinafter, “Covenant
        Defeasance”),
        and
        the Notes shall thereafter be deemed not “outstanding” for the purposes of any
        direction, waiver, consent or declaration or act of Holders (and the
        consequences of any thereof) in connection with such Sections, but shall
        continue to be deemed “outstanding” for all other purposes hereunder (it being
        understood that such Notes may not be deemed outstanding for accounting
        purposes). For this purpose, Covenant Defeasance means that, with respect
        to the
        outstanding Notes and the related Guarantees, the Company may omit to comply
        with and shall have no liability in respect of any term, condition or limitation
        set forth in any such Section, whether directly or indirectly, by reason
        of any
        reference elsewhere herein to any such Section or by reason of any reference
        in
        any such Section to any other provision herein or in any other document and
        such
        omission to comply shall not constitute a Default or an Event of Default
        under
        Section 6.01, but, except as specified above, the remainder of this
        Indenture and such Notes shall be unaffected thereby. In addition, upon the
        Company’s exercise under Section 8.01 of the option applicable to this
        Section 8.03, subject to the satisfaction of the conditions set forth in
        Section 8.04, Sections 6.01(3) through 6.01(8) shall not constitute
        Events of Default. In addition, upon Covenant Defeasance, the applicable
        Guarantees of each Guarantor shall be released.

       

      SECTION
        6.04.  Conditions
        to Legal or Covenant Defeasance.
        The
        following shall be the conditions to the application of either Section 8.02
        or 8.03 to the outstanding Notes:

       

      In
        order
        to exercise either Legal Defeasance or Covenant Defeasance:

       

      (1)  the
        Company must irrevocably deposit with the Trustee (or another qualifying
        trustee, collectively for purposes of this Section 8.04 and
        Section 8.05, the "Trustee"),
        in
        trust, for the benefit of the Holders cash in U.S. dollars, non-callable
        Government Securities or a combination thereof, in such amounts as will be
        sufficient (without

       

      (2)  reinvestment),
        in the opinion of a nationally recognized firm of independent public
        accountants, to pay the principal of, premium, if any, and interest on the
        outstanding Notes on the stated date for payment thereof or on the applicable
        redemption date, as the case may be, and the Company and the Guarantors must
        specify whether the Notes are being defeased to maturity or to a particular
        redemption date;

       

      (3)  in
        the
        case of Legal Defeasance, the Company shall have delivered to the Trustee
        an
        Opinion of Counsel reasonably acceptable to the Trustee confirming that,
        subject
        to customary assumptions and exclusions:

       

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

       

      (b)  since
        the
        date of this Indenture, there has been a change in the applicable federal
        income
        tax law,

       

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

       

      (4)  in
        the
        case of Covenant Defeasance, the Company shall have delivered to the Trustee
        an
        Opinion of Counsel confirming that, subject to customary assumptions and
        exclusions the Holders of the outstanding Notes will not recognize income,
        gain
        or loss for federal income tax purposes as a result of such Covenant Defeasance
        and will be subject to federal income tax on the same amounts, in the same
        manner and at the same times as would have been the case if such Covenant
        Defeasance had not occurred;

       

      (5)  no
        Default (other than a Default resulting from the borrowing of funds to be
        applied to such deposit and grant of any Lien securing such borrowing) shall
        have occurred and be continuing on the date of such deposit;

       

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

       

      (7)  the
        Company must have delivered to the Trustee an Opinion of Counsel to the effect
        that after the 91st
        day,
        assuming no intervening bankruptcy, that no Holder is an insider of the Company
        following the deposit and that such deposit would not be deemed by a court
        of
        competent jurisdiction a transfer for the benefit of the Company in its capacity
        as issuer of the Notes, the trust funds will not be subject to the effect
        of any
        applicable bankruptcy, insolvency, reorganization or similar laws affecting
        creditors’ rights generally;

       

      (8)  the
        Company shall have delivered to the Trustee an Officers’ Certificate stating
        that the deposit was not made by the Company with the intent of preferring
        the
        Holders over any other creditors of the Company or any Guarantor or with
        the
        intent of defeating, hindering, delaying or defrauding any other creditors
        of
        the Company, any Guarantor or others; and

       

      (9)  the
        Company shall have delivered to the Trustee an Officers’ Certificate and an
        Opinion of Counsel (which opinion of counsel may be subject to customary
        assumptions and exclusions), each stating that all conditions precedent provided
        for or relating to the Legal Defeasance or the Covenant Defeasance have been
        complied with.

       

      Notwithstanding
        the foregoing, the Opinion of Counsel required by clause (2) above with
        respect to a Legal Defeasance need not be delivered and the conditions set
        forth
        in clauses 4(b) and (6) shall not apply if all applicable Notes not
        theretofore delivered to the Trustee for cancellation

       

      (a)  have
        become due and payable or

       

      (b)  will
        become due and payable on the maturity date or a redemption date within one
        year
        under arrangements satisfactory to the Trustee for the giving of notice of
        redemption by the Trustee in the name, and at the expense, of the
        Company.

       

      SECTION
        6.05.  Deposited
        Money and Government Securities to Be Held in Trust; Other Miscellaneous
        Provisions.
        Subject
        to Section 8.06, all money and non-callable Government Securities
        (including the proceeds thereof) deposited with the Trustee pursuant to
        Section 8.04 in respect of the outstanding Notes shall be held in trust and
        applied by the Trustee, in accordance with the provisions of such Notes and
        this
        Indenture, to the payment, either directly or through any Paying Agent
        (including the Company acting as Paying Agent) as the Trustee may determine,
        to
        the Holders of such Notes of all sums due and to become due thereon in respect
        of principal, premium, if any, and interest (including any Special Interest),
        but such money need not be segregated from other funds except to the extent
        required by law.
        Money
        and Government Securities so held in trust are not subject to Article
        XIII.

       

      The
        Company shall pay and indemnify the Trustee against any tax, fee or other
        charge
        imposed on or assessed against the cash or non-callable Government Securities
        deposited pursuant to Section 8.04 or the principal and interest received
        in respect thereof other than any such tax, fee or other charge which by
        law is
        for the account of the Holders of the outstanding Notes.

       

      Anything
        in this Article VIII to the contrary notwithstanding, the Trustee shall
        deliver or pay to the Company from time to time upon the request of the Company
        any money or non-callable Government Securities held by it as provided in
        Section 8.04 which, in the opinion of a nationally recognized firm of
        independent public accountants expressed in a written certification thereof
        delivered to the Trustee (which may be the opinion delivered under
        Section 8.04(1)), are in excess of the amount thereof that would then be
        required to be deposited to effect an equivalent Legal Defeasance or Covenant
        Defeasance.

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

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

       

      SECTION
        6.06.  Reinstatement.
        If the
        Trustee or Paying Agent is unable to apply any United States dollars or
        non-callable Government Securities in accordance with Section 8.02 or 8.03,
        as the case may be, by reason of any order or judgment of any court or
        governmental authority enjoining, restraining or otherwise prohibiting such
        application, then the Company’s obligations under this Indenture and the Notes,
        shall be revived and reinstated as though no deposit had occurred pursuant
        to
        Section 8.02 or 8.03 until such time as the Trustee or Paying Agent is
        permitted to apply all such money in accordance with Section 8.02 or 8.03,
        as the case may be; provided,
        however,
        that,
        if the Company or any Guarantor makes any payment of principal of, premium,
        if
        any, or interest on any Note following the reinstatement of its obligations,
        the
        Company or any Guarantor, as the case may be, shall be subrogated to the
        rights
        of the Holders of such Notes to receive such payment from the money held
        by the
        Trustee or Paying Agent.

       

      ARTICLE
        VII  

       

       

      AMENDMENT,
        SUPPLEMENT AND WAIVER

       

      SECTION
        7.01.  Without
        Consent of Holders of Notes.
        Notwithstanding Section 9.02 of this Indenture, from
        time
        to time, the Company, the Guarantors and the Trustee, without the consent
        of, or
        prior notice to, the Holders, may amend this Indenture: 

       

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

       

      (2)  to
        provide for uncertificated Notes in addition to or in place of certificated
        Notes;

       

      (3)  to
        provide for or confirm the issuance of Additional Notes;

       

      (4)  to
        provide for the assumption of the Company’s or any Guarantor’s obligations to
        Holders of Notes in the case of a merger or consolidation or sale of all
        or
        substantially all of the assets of the Company pursuant to
        Article V;

       

      (5)  to
        add or
        release any Guarantee in accordance with the provisions of this
        Indenture;

       

      (6)  to
        make
        any change that would provide any additional rights or benefits to the Holders
        of Notes or that does not materially adversely affect the legal rights under
        this Indenture of any Holder;

       

      (7)  to
        comply
        with requirements of the SEC in order to effect or maintain the qualification
        of
        this Indenture under the TIA or otherwise as necessary to comply with applicable
        law;

       

      (8)  to
        evidence and provide for the acceptance and appointment under this Indenture
        of
        a successor Trustee thereunder pursuant to the requirements
        thereof;

       

      (9)  to
        provide for the issuance of (x) Exchange Notes or (y) private exchange notes
        which are identical to Exchange Notes except that they are not freely
        transferable;

       

      (10)  to
        conform the text of this Indenture, Guarantees or the Notes to any provision
        of
        the “Description of notes” section of the Offering Memorandum to the extent that
        such provision in such “Description of notes” section was intended to be a
        verbatim recitation of a provision of this Indenture, Guarantee or Notes;
        or

       

      (11)  making
        any amendment to the provisions of this Indenture relating to the transfer
        and
        legending of Notes as permitted by this Indenture, including, without limitation
        to facilitate the issuance and administration of the Notes; provided,
        however,
        that
        (i) compliance with this Indenture as so amended would not result in Notes
        being
        transferred in violation of the Securities Act or any applicable securities
        law
        and (ii) such amendment does not materially and adversely affect the rights
        of
        Holders to transfer Notes.

       

      Upon
        the
        request of the Company and the Guarantors accompanied by a Board Resolution
        authorizing the execution of any such amended or supplemental Indenture,
        Notes
        or Guarantee (or an amendment or supplement of any of the foregoing), and
        upon
        receipt by the Trustee of the documents described in Section 7.02, the
        Trustee shall join with the Company and the Guarantors in the execution of
        any
        amended or supplemental Indenture, Notes or Guarantee authorized or permitted
        by
        the terms of this Indenture and to make any further appropriate agreements
        and
        stipulations that may be therein contained, but the Trustee shall not be
        obligated to enter into such amended or supplemental Indenture, Notes or
        Guarantee that affects its own rights, duties or immunities under this
        Indenture, Notes or Guarantee or otherwise. Notwithstanding the foregoing,
        no
        Opinion of Counsel shall be required in connection with the addition of a
        Guarantor under this Indenture upon execution and delivery by such Guarantor
        and
        the Trustee of a supplemental indenture to this Indenture and delivery of
        an
        Officer’s Certificate.

       

      SECTION
        7.02.  With
        Consent of Holders of Notes.
        Except
        as provided below in this Section 9.02, this Indenture, the Notes or the
        Guarantees may be amended or supplemented with the consent of the Holders
        of at
        least a majority in aggregate principal amount of the Notes then outstanding.
        This includes consents obtained in connection with a purchase of, or a tender
        offer or exchange offer for, Notes. Any existing Default or compliance with
        any
        provision of this Indenture, 

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

      the
        Notes
        or the Guarantees (other than any provision relating to the rights of any
        Holder
        to bring suit for the enforcement of any payment of principal, premium, if
        any,
        and interest on such Holder’s Notes, on or after the scheduled due dates
        expressed in the Notes) may be waived with the consent of the Holders of
        a
        majority in aggregate principal amount of the then outstanding Notes (including
        consents obtained in connection with a purchase of, or a tender offer or
        exchange offer for, Notes). Sections 2.08 and 2.09 shall determine which
        Notes are considered to be “outstanding” for purposes of this
        Section 9.02.

       

      Upon
        the
        request of the Company accompanied by a Board Resolution authorizing the
        execution of any such amended or supplemental Indenture, Notes or Guarantee
        (or
        an amendment or supplement of any of the foregoing), and upon the filing
        with
        the Trustee of evidence satisfactory to the Trustee of the consent of the
        Holders of Notes as aforesaid, and upon receipt by the Trustee of the documents
        (if any) described in Section 7.02, the Trustee shall join with the Company
        and the Guarantors in the execution of such amended or supplemental Indenture,
        Notes or Guarantee (or such amendment or supplement) unless such amended
        or
        supplemental Indenture, Notes or Guarantee (or such amendment or supplement)
        directly affects the Trustee’s own rights, duties or immunities under this
        Indenture, Notes or Guarantee or otherwise, in which case the Trustee may
        in its
        discretion, but shall not be obligated to, enter into such amended or
        supplemental Indenture, Notes or Guarantee (or such amendment or
        supplement).

       

      It
        shall
        not be necessary for the consent of the Holders of Notes under this
        Section 9.02 to approve the particular form of any proposed amendment,
        supplement or waiver, but it shall be sufficient if such consent approves
        the
        substance thereof.

       

      After
        an
        amendment, supplement or waiver under this Section 9.02 becomes effective,
        the Company shall mail to the Holders of Notes a notice briefly describing
        the
        amendment, supplement 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 amended or supplemental Indenture, Notes or Guarantee
        (or
        such amendment) or waiver. Without the consent of each Holder affected thereby,
        an amendment, supplement or waiver under this Section 9.02 may not (with
        respect to any Notes held by such Holder):

       

      (1)  reduce
        the principal amount of Notes whose Holders must consent to an
        amendment;

       

      (2)  reduce
        the rate of or change the time for payment of interest, including defaulted
        interest, on any Notes;

       

      (3)  reduce
        the principal of or change the fixed maturity of any Notes, or change the
        date
        on which any Notes may be subject to redemption or reduce the redemption
        price
        therefor;

       

      (4)  make
        any
        Notes payable in money other than that stated in the Notes;

       

      (5)  make
        any
        change in provisions of this Indenture that impairs the right of each Holder
        to
        receive payment of principal of and interest on such Note on or after
        the

       

      (6)  due
        date
        thereof or to bring suit to enforce such payment, or permitting Holders of
        a
        majority in principal amount of Notes to waive payment Defaults or Events
        of
        Default;

       

      (7)  after
        the
        Company’s obligation to purchase Notes arises thereunder, amend, change or
        modify in any material respect the obligation of the Company to make and
        consummate a Change of Control Offer in the event of a Change of Control
        or make
        and consummate a Net Proceeds Offer with respect to any Asset Sale that has
        been
        consummated or modify any of the provisions or definitions with respect
        thereto;

       

      (8)  modify
        or
        change any provision of this Indenture or the related definitions affecting
        the
        subordination or ranking of the Notes or any Guarantee in a manner which
        adversely affects the Holders; or

       

      (9)  release
        any Guarantor from any of its obligations under its Guarantee or this Indenture
        otherwise than in accordance with the terms of this Indenture.

       

      SECTION
        7.03.  Compliance
        with Trust Indenture Act.
        Every
        amendment or supplement to this Indenture or the Notes shall be set forth
        in an
        amended or supplemental Indenture that complies with the TIA as then in
        effect.

       

      SECTION
        7.04.  Revocation
        and Effect of Consents.
        Until
        an amendment, supplement or waiver becomes effective, a consent to it by
        a
        Holder of a Note is a continuing consent by the Holder of a Note and every
        subsequent Holder of a Note or portion of a Note that evidences the same
        debt as
        the consenting Holder’s Note, even if notation of the consent is not made on any
        Note. However, any such Holder of a Note or subsequent Holder of a Note may
        revoke the consent as to its Note if the Trustee receives written notice
        of
        revocation before the date the waiver, supplement or amendment becomes
        effective. After an amendment, supplement or waiver becomes effective, it
        shall
        bind every Holder. An amendment, supplement or waiver becomes effective once
        both (i) the requisite number of consents have been received by the Company
        or
        the Trustee and (ii) such amendment, supplement or waiver has been executed
        by
        the Company, the Guarantors and the Trustee.

       

      The
        Company may, but shall not be obligated to, fix a record date for the purpose
        of
        determining the Holders entitled to give their consent or take any other
        action
        described above or required or permitted to be taken pursuant to this Indenture.
        If a record date is fixed, then notwithstanding the immediately preceding
        paragraph, those Persons who were Holders at such record date (or their duly
        designated proxies), and only those Persons, shall be entitled to give such
        consent or to revoke any consent previously given or to take any such action,
        whether or not such Persons continue to be Holders after such record
        date.

       

      SECTION
        7.05.  Notation
        on or Exchange of Notes.
        The
        Trustee may place an appropriate notation about an amendment, supplement
        or
        waiver on any Note thereafter authenticated. The Company in exchange for
        all
        Notes may issue and the Trustee shall, upon receipt of an Authentication
        Order,
        authenticate new Notes that reflect the amendment, supplement or
        waiver.

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

      Failure
        to make the appropriate notation or issue a new Note shall not affect the
        validity and effect of such amendment, supplement or waiver.

       

      SECTION
        7.06.  Trustee
        to Sign Amendments, etc.
        The
        Trustee shall sign any amended or supplemental Indenture, Notes or Guarantee
        (or
        an amendment or supplement to any of the foregoing) authorized pursuant to
        this
        Article IX if the amendment or supplement does not adversely affect the
        rights, duties, liabilities or immunities of the Trustee under this Indenture
        or
        otherwise. The Company and the Guarantors may not sign an amendment or
        supplemental Indenture until their respective Boards of Directors approve
        it. In
        executing any amended or supplemental indenture, the Trustee shall be provided
        with and (subject to Section 7.01) shall be fully protected in relying
        upon, in addition to the documents required by Section 11.04, an Officer’s
        Certificate and an Opinion of Counsel, in each case from the Company, stating
        that the execution of such amended or supplemental indenture is authorized
        or
        permitted by this Indenture.

       

      SECTION
        7.07.  Payments
        for Consent.
        The
        Company will not, and will not permit any of its Subsidiaries to, directly
        or
        indirectly, pay or cause to be paid any consideration to or for the benefit
        of
        any Holder of Notes for or as an inducement to any consent, waiver or amendment
        of any of the terms or provisions of this Indenture or the Notes unless such
        consideration is offered to be paid and is paid to all Holders of Notes that
        consent, waive or agree to amend in the time frame set forth in the solicitation
        documents relating to such consent, waiver or amendment.

       

      ARTICLE
        VIII  

       

       

      GUARANTEE

       

      SECTION
        8.01.  Unconditional
        Guarantee.
        Each of
        the Guarantors hereby jointly and severally, unconditionally guarantees to
        the
        Holders of all Notes authenticated and delivered by the Trustee and to the
        Trustee and its successors and assigns that: (i) the principal of,
        interest, premium, if any, on the Notes will be promptly paid in full when
        due,
        subject to any applicable grace period, whether at maturity, by acceleration,
        redemption or otherwise, and interest on the overdue principal, if any, and
        interest on any interest, to the extent lawful, of the Notes and all other
        Obligations of the Company to the Holders or the Trustee hereunder or thereunder
        will be promptly paid in full or performed, all in accordance with the terms
        hereof and thereof; and (ii) in case of any extension of time of payment or
        renewal of any Notes or of any such other Obligations, the same will be promptly
        paid in full when due or performed in accordance with the terms of the extension
        or renewal, subject to any applicable grace period, whether at stated maturity,
        by acceleration or otherwise. Failing payment when due of any amount so
        guaranteed or any performance so guaranteed for whatever reason, the Guarantors
        shall be jointly and severally obligated to pay the same immediately. Each
        Guarantor agrees that this is a guarantee of payment and not a guarantee
        of
        collection. Each of the Guarantors agrees that its obligations hereunder
        shall
        be unconditional, irrespective of the validity, regularity or enforceability
        of
        the Notes or this Indenture, the absence of any action to enforce the same,
        any
        waiver or consent by any Holder with respect to any provisions hereof or
        thereof, the recovery of any judgment against the Company, and action to
        enforce
        the same or any other circumstance which might 

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

      otherwise
        constitute a legal or equitable discharge or defense of a guarantor. Each
        Guarantor waives diligence, presentment, demand of payment, filing of claims
        with a court in the event of insolvency or bankruptcy of the Company, any
        right
        to require a proceeding first against the Company, protest, notice and all
        demands whatsoever and covenants that this Guarantee will not be discharged
        except by complete performance of the Obligations contained in the Notes,
        this
        Indenture and this Guarantee, and waives any and all defenses available to
        a
        surety (other than payment in full). Each Guarantor also agrees to pay any
        and
        all costs and expenses (including reasonable attorneys’ fees) incurred by the
        Trustee or any Holder in enforcing any rights under this Section 10.01. If
        any
        Holder or the Trustee is required by any court or otherwise to return to
        the
        Company or the Guarantors, or any custodian, trustee, liquidator or other
        similar official acting in relation to the Company or the Guarantors, any
        amount
        paid by the Company or the Guarantors to the Trustee or such Holder, this
        Guarantee, to the extent theretofore discharged, shall be reinstated in full
        force and effect. Each Guarantor further agrees that, as between the Guarantors,
        on the one hand, and the Holders and the Trustee, on the other hand,
        (x) the maturity of the obligations guaranteed hereby may be accelerated as
        provided in Article VI for the purposes of this Guarantee, notwithstanding
        any stay, injunction or other prohibition preventing such acceleration in
        respect of the Obligations guaranteed hereby, and (y) in the event of any
        acceleration of such obligations as provided in Article VI, such
        Obligations (whether or not due and payable) shall forthwith become due and
        payable by the Guarantors for the purpose of this Guarantee.
        The
        Guarantors shall have the right to seek contribution from any non-paying
        Guarantor so long as the exercise of such right does not impair the rights
        of
        the Holders under the Guarantees.

       

      Each
        Guarantee shall remain in full force and effect and continue to be effective
        should any petition be filed by or against the Company for liquidation,
        reorganization, should the Company become insolvent or make an assignment
        for
        the benefit of creditors or should a receiver or trustee be appointed for
        all or
        any significant part of the Company’s assets, and shall, to the fullest extent
        permitted by law, continue to be effective or be reinstated, as the case
        may be,
        if at any time payment and performance of the Notes are, pursuant to applicable
        law, rescinded or reduced in amount, or must otherwise be restored or returned
        by any oblige on the Notes or Guarantees, whether as a “voidable preference,”
“fraudulent transfer” or otherwise, all as though such payment or performance
        had not been made. In the event that any payment or any part thereof, is
        rescinded, reduced, restored or returned, the Notes shall, to the fullest
        extent
        permitted by law, be reinstated and deemed reduced only by such amount paid
        and
        not so rescinded, reduced, restored or returned.

       

      Except
        to
        the extent provided in Article XIII with respect to the Guarantees of Servicing
        Guarantors, the Guarantee issued by any Guarantor shall be a general unsecured
        obligation of such Guarantor.

       

      Each
        payment to be made by a Guarantor in respect of its Guarantee shall be made
        without set-off, counterclaim, reduction or diminution of any kind or
        nature.

       

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

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

      Waiver
        of
        Subrogation.
        Until
        all Obligations under the Notes are paid in full, each Guarantor irrevocably
        waives any claims or other rights which it may now or hereafter acquire against
        the Company that arise from the existence, payment, performance or enforcement
        of the Guarantors’ Obligations under its Guarantee and this Indenture, including
        any right of subrogation, reimbursement, exoneration, indemnification, and
        any
        right to participate in any claim or remedy of any Holder against the Company,
        whether or not such claim, remedy or right arises in equity, or under contract,
        statute or common law, including the right to take or receive from the Company,
        directly or indirectly, in cash or other property or by setoff or in any
        other
        manner, payment or security on account of such claim or other rights. If
        any
        amount shall be paid to the Guarantors in violation of the preceding sentence
        and the Notes shall not have been paid in full, such amount shall have been
        deemed to have been paid to the Guarantors for the benefit of, and held in
        trust
        for the benefit of, the Holders, and shall forthwith be paid to the Trustee
        for
        the benefit of the Holders to be credited and applied upon the Notes, whether
        matured or unmatured, in accordance with the terms of this Indenture. Each
        Guarantor acknowledges that it will receive direct and indirect benefits
        from
        the financing arrangements contemplated by this Indenture and that the waiver
        set forth in this Section 10.03 is knowingly made in contemplation of such
        benefits.

       

      SECTION
        8.03.  Execution
        of Guarantee.
        To
        evidence its Guarantee to the Holders set forth in this Article X, each
        Guarantor agrees to execute the Guarantee endorsed on each Note ordered to
        be
        authenticated and delivered by the Trustee. Each Guarantor agrees that its
        Guarantee set forth in this Article X shall remain in full force and effect
        notwithstanding any failure to endorse on each Note a notation of such
        Guarantee. Each such Guarantee shall be signed on behalf of each Guarantor
        by
        one of its authorized Officers prior to the authentication of the Note on
        which
        it is endorsed, and the delivery of such Note by the Trustee, after the
        authentication thereof hereunder, shall constitute due delivery of such
        Guarantee on behalf of the Guarantors. Such signatures upon the Guarantee
        may be
        by manual or facsimile signature of such Officer and may be imprinted or
        otherwise reproduced on the Guarantee, and in case any such Officer who shall
        have signed the Guarantee shall cease to be such Officer before the Note
        on
        which such Guarantee is endorsed shall have been authenticated and delivered
        by
        the Trustee or disposed of by the Company, such Note nevertheless may be
        authenticated and delivered or disposed of as though the Person who signed
        the
        Guarantee had not ceased to be such Officer of the Guarantors.

       

      If
        required by Section 4.12, the Company shall cause any newly created or acquired
        Restricted Subsidiary to comply with the provisions of Section 4.12 hereof
        and
        this Article X, to the extent applicable.

       

      SECTION
        8.04.  Waiver
        of Stay, Extension or Usury Laws.
        Each
        Guarantor 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 or extension law or any usury law or other
        law
        that would prohibit or forgive it from performing its Guarantee as contemplated
        herein, wherever enacted, now or at any time hereafter in force, or which
        may
        affect the covenants or the performance of this Indenture; and (to the extent
        that it may lawfully do so) each Guarantor hereby expressly waives all benefit
        or advantage of any such law, and covenants that it will not hinder, delay
        or
        impede the execution of any power herein granted to the Trustee,
        but will suffer and permit the execution of every such power as though no
        such
        law had been enacted.

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

       

      Each
        Guarantor, and by its acceptance of Notes, each Holder, hereby confirms that
        it
        is the intention of all such parties that the Guarantee of such Guarantor
        not
        constitute a fraudulent transfer or conveyance for purposes of Bankruptcy
        Law,
        the Uniform Fraudulent Conveyance Act, the Uniform Fraudulent Transfer Act
        or
        any similar federal or state law to the extent applicable to any Guarantee.
        To
        effectuate the foregoing intention, the Trustee, the Holders and the Guarantors
        hereby irrevocably agree that the obligations of each Guarantor shall be
        limited
        to the maximum amount as will, after giving effect to such maximum amount
        and
        all other contingent and fixed liabilities of such Guarantor that are relevant
        under such laws and after giving effect to any collections from, rights to
        receive contribution from or payments made by or on behalf of any other
        Guarantor in respect of the obligations of such other Guarantor under this
        Article X, result in the obligations of such Guarantor under its Guarantee
        not
        constituting a fraudulent conveyance or fraudulent transfer under applicable
        law. Each Guarantor that makes a payment under its Guarantee shall be entitled
        upon payment in full of all guaranteed obligations under this Indenture to
        a
        contribution from each other Guarantor in an amount equal to such other
        Guarantor’s pro rata
        portion
        of such payment based on the respective net assets of all the Guarantors
        at the
        time of such payment determined in accordance with GAAP.

       

      SECTION
        8.05.  Release
        of Guarantors

       

      (a)  The
        Guarantors shall be released from their obligations under the Guarantees
        under
        the circumstances described in Section 5.02. 

       

      (b)  In
        the
        event that any of the Capital Stock of a Guarantor is sold by the Company
        (including by way of a merger) and, as a result of such sale, such Guarantor
        ceases to be a Subsidiary of the Company and the sale complies with Section
        4.11, such Guarantor’s Guarantee shall be released (it being understood that
        only such portion of the Net Cash Proceeds as is or is required to be applied
        on
        or before the date of such release in accordance with the terms of this
        Indenture needs to be so applied). It is expressly acknowledged that the
        application of the Net Cash Proceeds of any such sale or other disposition
        following the date of such release shall not be a condition precedent to
        such
        release and any failure to make such application as required by such
        Section 4.11 shall not cause the revocation of any such release (it being
        understood that such failure shall constitute a Default or Event of Default,
        as
        applicable).

       

      (c)  Any
        Guarantor that is designated as an Unrestricted Subsidiary in accordance
        with
        the provisions of this Indenture will be automatically released from its
        Guarantee and the Indenture upon effectiveness of such designation.

       

      (d)  If
        the
        Guarantee of any Guarantor is released pursuant to the foregoing provisions
        such
        Person shall cease to be a Guarantor or otherwise a party to this Indenture
        and,
        upon the request by the Company, the Trustee shall execute appropriate
        instruments acknowledging such termination and the release of such Person
        from
        its obligations hereunder and the Guarantee.

       

       

      MISCELLANEOUS

       

      SECTION
        8.06.  Trust
        Indenture Act Controls.
        If any
        provision of this Indenture limits, qualifies or conflicts with the duties
        imposed by TIA Section 318(c), the imposed duties shall control.

       

      SECTION
        8.07.  Notices.
        Any
        notice or communication by the Company or the Trustee 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 others’
address:

       

      If
        to the
        Company or the Guarantors:

       

      

       

      Saxon
        Capital, Inc.

       

      4860
        Cox
        Road; Suite 300

       

      Glen
        Allen, VA 23060

       

      

       

      Attention:
        General Counsel and Corporate Secretary

       

      With
        a
        copy to:

       

      

       

      Gibson,
        Dunn & Crutcher LLP

       

      200
        Park
        Avenue

       

      New
        York,
        NY 10016

       

      Telecopier
        No.: (212) 351-4008

       

      Attention:
        Joerg Esdorn, Esq.

       

      If
        to the
        Trustee:

       

      

       

      Deutsche
        Bank Trust Company Americas

       

      60
        Wall
        Street, 27th
        Floor

       

      MS:
        NYC60-2710

       

      New
        York,
        NY 10005

       

      Attention:
        Trust and Securities Services

       

      With
        a
        copy to:

       

      

       

      Deutsche
        Bank National Trust Company

       

      for
        Deutsche Bank Trust Company Americas

       

      25
        De
        Forest Avenue

       

      Second
        Floor, MS 50M01-0105

       

      Summit,
        New Jersey 07801

       

      Attention:
        Trust and Securities Services

       

      Tel:
        908-608-3162

       

      Fax:
        732-578-4635

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

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

       

      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.

       

      Any
        notice or communication to a Holder shall be mailed by first class mail,
        certified or registered, return receipt requested, or by overnight air courier
        guaranteeing next day delivery to its address shown on the register kept
        by the
        Registrar. Any notice or communication shall also be so mailed to any Person
        described in TIA Section 313(c), to the extent required by the TIA. 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.

       

      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.

       

      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
        8.08.  Communication
        by Holders of Notes with Other Holders of Notes.
        Holders
        may communicate pursuant to TIA Section 312(b) with other Holders with respect
        to their rights under this Indenture or the Notes. The Company, the Guarantors,
        the Trustee, the Registrar and anyone else shall have the protection of TIA
        Section 312(c).

       

      SECTION
        8.09.  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:

       

      (1)  an
        Officers’ Certificate in form and substance reasonably satisfactory to the
        Trustee (which shall include the statements set forth in Section 11.05)
        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 satisfied; and

       

      (2)  an
        Opinion of Counsel in form and substance reasonably satisfactory to the Trustee
        (which shall include the statements set forth in Section 11.05) stating
        that, in the opinion of such counsel, all such conditions precedent and
        covenants have been satisfied.

       

      SECTION
        8.10.  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 Section 314(a)(4)) shall comply with the provisions of TIA Section 314(e)
        and shall include:

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

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

       

      (1)  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;

       

      (2)  a
        statement that, in the opinion of such Person, he or she has made such
        examination or investigation as is necessary to enable him to express an
        informed opinion as to whether or not such covenant or condition has been
        satisfied (and in the case of an Opinion of Counsel, may be limited to reliance
        on an Officer’s Certificate as to matters of fact); and

       

      (3)  a
        statement as to whether or not, in the opinion of such Person, such condition
        or
        covenant has been satisfied.

       

      SECTION
        8.11.  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
        8.12.  No
        Personal Liability of Directors, Officers, Employees, Incorporators, Members
        and
        Stockholders.
        No
        past, present or future director, officer, employee, incorporator agent or
        stockholder of the Company or any Guarantors, as such, will have any liability
        for any obligations of the Company or the Guarantors under the Notes, this
        Indenture, the Guarantees or for any claim based on, in respect of, or by
        reason
        of, such obligations or their creation. Each Holder of Notes by accepting
        a Note
        and a Guarantee waives and releases all such liability. The waiver and release
        are part of the consideration for issuance of the Notes and the
        Guarantees.

       

      SECTION
        8.13.  Governing
        Law.
        THE
        INTERNAL LAWS OF THE STATE OF NEW YORK SHALL GOVERN AND BE USED TO CONSTRUE
        THIS
        INDENTURE AND THE NOTES AND ANY GUARANTEE WITHOUT GIVING EFFECT TO THE
        APPLICABLE PRINCIPLES OF CONFLICTS OF LAWS TO THE EXTENT THAT THE APPLICATION
        OF
        THE LAWS OF ANOTHER JURISDICTION WOULD BE REQUIRED THEREBY. EACH OF THE PARTIES
        HERETO AGREES TO SUBMIT TO THE JURISDICTION OF THE COURTS OF THE STATE OF
        NEW
        YORK IN ANY ACTION OR PROCEEDING ARISING OUT OF OR RELATING TO THIS INDENTURE
        OR
        THE NOTES OR ANY GUARANTEE.

       

      SECTION
        8.14.  No
        Adverse Interpretation of Other Agreements.
        This
        Indenture may not be used to interpret any other indenture, loan or debt
        agreement of the Company, its Subsidiaries or of any other Person. Any such
        indenture, loan or debt agreement may not be used to interpret this
        Indenture.

       

      SECTION
        8.15.  Successors.
        All
        agreements of the Company and the Guarantors in this Indenture and the Notes,
        as
        the case may be, shall bind their respective successors. All agreements of
        the
        Trustee in this Indenture shall bind its successors.

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

      Severability.
        In case
        any provision in this Indenture or the Notes, as the case may be, 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
        8.16.  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
        8.17.  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 of this Indenture and shall in no way modify or restrict
        any of the terms or provisions.

       

      SECTION
        8.18.  Qualification
        of Indenture.
        The
        Company and the Guarantors shall qualify this Indenture under the Trust
        Indenture Act in accordance with the terms and conditions of the Registration
        Rights Agreement. The Trustee shall be entitled to receive from the Company
        and
        the Guarantors any such Officer’s Certificates, Opinions of Counsel or other
        documentation as it may reasonably request in connection with any such
        qualification of this Indenture under the Trust Indenture Act.

       

      ARTICLE
        IX  

       

       

      SATISFACTION
        AND DISCHARGE

       

      SECTION
        9.01.  Satisfaction
        and Discharge of Indenture.
        The
        Notes, the Guarantees and any Registration Rights Agreement shall cease to
        be of
        further effect (except as to any surviving rights of registration of transfer
        or
        exchange of Notes herein expressly provided for), and the Trustee, on demand
        of
        and at the expense of the Company, shall execute proper instruments
        acknowledging satisfaction and discharge of the Notes, the related Guarantees
        and any Registration Rights Agreement, when

       

      (1)  either:

       

      (a)  all
        Notes
        theretofore authenticated and delivered (other than (i) Notes which have
        been destroyed, lost or stolen or which have been replaced or paid as provided
        in Section 2.07 and (ii) Notes for whose payment money has theretofore
        been deposited in trust or segregated and held in trust by the Company and
        thereafter repaid to the Company or discharged from such trust) have been
        delivered to the Trustee for cancellation; or

       

      (b)  all
        Notes
        not theretofore delivered to the Trustee for cancellation have become (or
        will
        become within one year) due and payable and the Company has irrevocably
        deposited or caused to be deposited with the Trustee as trust funds in trust
        for
        the purpose an amount sufficient to pay and discharge the entire Indebtedness
        on
        the Notes not theretofore delivered to the Trustee for cancellation, for
        principal (of premium, if any) and interest on the Notes to the date of the
        maturity or redemption thereof, as the case may be, together with irrevocable
        instru

       

      (c)  tions
        from the Company directing the Trustee to apply such funds to the payment
        thereof at maturity or redemption, as the case may be;

       

      (2)  the
        Company has paid or caused to be paid all other sums payable hereunder by
        the
        Company; and

       

      (3)  the
        Company has delivered to the Trustee an Officers’ Certificate and an Opinion of
        Counsel, each stating that all conditions precedent herein provided for relating
        to the satisfaction and discharge of the Notes have been complied
        with.

       

      When
        the
        Notes have ceased to be of further effect pursuant to this Section 12.01,
        then
        this Indenture shall cease to be of further effect, and the Trustee, on demand
        of and at the expense of the Company, shall execute proper instruments
        acknowledging satisfaction and discharge of this Indenture. Notwithstanding
        the
        satisfaction and discharge of the Notes or this Indenture pursuant to this
        Article XII, the obligations of the Company to the Trustee under
        Section 7.07, and, if money shall have been deposited with the Trustee
        pursuant to subclause (b) of clause (1) of this Section, the
        obligations of the Trustee under Section 12.02 shall survive such
        satisfaction and discharge. 

       

      SECTION
        9.02.  Application
        of Trust Money.
        All
        money deposited with the Trustee pursuant to Section 12.01 shall be held in
        trust and applied by it, in accordance with the provisions of the Notes and
        this
        Indenture, to the payment, either directly or through any Paying Agent as
        the
        Trustee may determine, to the Persons entitled thereto, of the principal
        (and
        premium, if any) and interest for whose payment such money has been deposited
        with the Trustee.

       

      ARTICLE
        X  

       

      SUBORDINATION
        OF CERTAIN GUARANTEES

       

      SECTION
        10.01.  Agreement
        to Subordinate.
        Each
        Servicing Guarantor agrees, and each Holder by accepting a Note agrees, that
        the
        obligations of such Servicing Guarantor under its Guarantee are subordinated
        in
        right of payment, to the extent and in the manner provided in this
        Article XIII, to the prior payment in full of all MSR Advances
        (“Senior
        Indebtedness”)
        and
        that the subordination is for the benefit of and enforceable by the lenders
        under any Warehouse Facility pursuant to which MSR Advances are made (a “Senior
        Indebtedness Facility”). Each Servicing Guarantor’s obligations under its
        Guarantee shall in all respects rank pari
        passu
        in right
        of payment with all existing and future Senior Subordinated Indebtedness
        of such
        Servicing Guarantor, and will be senior in right of payment to all existing
        and
        future Subordinated Indebtedness of such Servicing Guarantor; and only Senior
        Indebtedness of such Servicing Guarantor shall rank senior to the obligations
        of
        such Guarantor under its Guarantee in accordance with the provisions set
        forth
        herein. For purposes of this Article XIII, the obligations of each Servicing
        Guarantor under its Guarantee include any Special Interest payable pursuant
        to
        the provisions set forth in the Notes and the Registration Rights Agreement.
        All
        provisions of this Article XIII shall be subject to
        Section 13.12.

       

      SECTION
        10.02.  Liquidation,
        Dissolution, Bankruptcy.
        Upon
        any
        payment or distribution of the assets of a Servicing Guarantor to creditors
        upon
        a total or partial liquidation or
        a
        total or partial dissolution of such Servicing Guarantor or in a reorganization
        of or similar proceeding relating to such Servicing Guarantor or its
        property:

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

       

      (i)  the
        holders of Senior Indebtedness of such Servicing Guarantor shall be entitled
        to
        receive payment in full in cash of such Senior Indebtedness before Holders
        shall
        be entitled to receive any payment; and 

       

      (ii)  until
        the
        Senior Indebtedness of such Servicing Guarantor is paid in full in cash,
        any
        payment or distribution to which Holders would be entitled but for the
        subordination provisions of this Indenture shall be made to holders of such
        Senior Indebtedness as their interests may appear, 

       

      except
        that Holders may receive Permitted Junior Securities.

       

      SECTION
        10.03.  Default
        on Senior Indebtedness of a Servicing Guarantor.
        A
        Servicing Guarantor shall not make any payment pursuant to its Guarantee
        (or pay
        any other Obligations relating to its Guarantee, including Special Interest,
        fees, costs, expenses, indemnities and rescission or damage claims)
        (collectively, “pay
        its Guarantee”)
        (except in the form of Permitted Junior Securities) if either of the following
        occurs (a “Guarantor
        Payment Default”):

       

      (i)  any
        Obligation of such Servicing Guarantor on any Senior Indebtedness is not
        paid in
        full in cash when due (after giving effect to any applicable grace period);
        or

       

      (ii)  any
        other
        default under any Senior Indebtedness Facility of such Servicing Guarantor
        occurs and the maturity of Senior Indebtedness under such Senior Indebtedness
        Facility is accelerated in accordance with its terms;

       

      unless,
        in either case, the Guarantor Payment Default has been cured or waived and
        any
        such acceleration has been rescinded or the Senior Indebtedness under such
        Senior Indebtedness Facility has been paid in full in cash; provided,
        however,
        that
        such Servicing Guarantor shall be entitled to pay its Guarantee without regard
        to the foregoing if such Servicing Guarantor and the Trustee receive written
        notice approving such payment from the trustee, agent or representative (if
        any)
        of all Senior Indebtedness Facilities with respect to which the Guarantor
        Payment Default has occurred and is continuing. 

       

      During
        the continuance of any default (other than a Guarantor Payment Default) (a
        “Non-Guarantor
        Payment Default”)
        under
        any Senior Indebtedness Facility pursuant to which Senior Indebtedness is
        then
        outstanding and pursuant to which the maturity thereof may be accelerated
        without further notice (except such notice as may be required to effect such
        acceleration) or the expiration of any applicable grace periods, such Servicing
        Guarantor shall not pay its Guarantee for a period (a “Guarantee
        Payment Blockage Period”)
        commencing upon the receipt by the Trustee (with a copy to such Guarantor
        and
        the Company) of written notice (a “Guarantee
        Blockage Notice”)
        of
        such Non-Guarantor Payment Default from the trustee, agent or representative
        (if
        any) of such Senior Indebtedness Facility specifying an election to effect
        a
        Guarantee Payment Blockage Period and ending 179 days thereafter. So long
        as there shall remain outstanding any Senior Indebtedness, a Guarantee Blockage
        Notice may be given only by the administrative agent under the applicable
        Senior
        Indebtedness Facility unless otherwise agreed to

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

      in
        writing by the requisite lenders named therein. The Guarantee Payment Blockage
        Period shall end earlier if such Guarantee Payment Blockage Period is terminated
        (i) by written notice to the Trustee, the relevant Servicing Guarantor and
        the Company from the Person or Persons who gave such Guarantee Blockage Notice;
        (ii) because the default giving rise to such Guarantee Blockage Notice is
        cured, waived or otherwise no longer continuing; or (iii) because such Senior
        Indebtedness has been discharged or repaid in full in cash. 

       

      Notwithstanding
        the provisions described in the immediately preceding two sentences (but
        subject
        to the provisions contained in the first sentence of this Section 13.03 and
        Section 13.02 hereof), unless the lenders under such Senior Indebtedness
        Facility or the trustee, agent or representative of such Senior Indebtedness
        Facility shall have accelerated the maturity of such Senior Indebtedness
        or a
        Guarantor Payment Default has occurred and is continuing, the relevant Servicing
        Guarantor shall be entitled to resume paying its Guarantee after the end
        of such
        Guarantee Payment Blockage Period. No Guarantee of a Servicing Guarantor
        shall
        be subject to more than one Guarantee Payment Blockage Period in any consecutive
        360-day period irrespective of the number of defaults with respect to Senior
        Indebtedness Facilities of the relevant Servicing Guarantor during such period.
        However, in no event shall the total number of days during which any Guarantee
        Payment Blockage Period or Periods on a Guarantee of a Servicing Guarantor
        is in
        effect exceed 179 days in the aggregate during any consecutive 360-day period,
        and there must be at least 181 days during any consecutive 360-day period
        during
        which no Guarantee Payment Blockage Period is in effect. Notwithstanding
        the
        foregoing, however, no default that existed or was continuing on the date
        of
        delivery of any Guarantee Blockage Notice to the Trustee shall be, or be
        made,
        the basis for a subsequent Guarantee Blockage Notice unless such default
        shall
        have been waived for a period of not less than 90 days.

       

      SECTION
        10.04.  Demand
        for Payment.
        If
        payment of the Notes is accelerated because of an Event of Default and a
        demand
        for payment is made on a Servicing Guarantor pursuant to Article X hereof,
        the
        Company or such Servicing Guarantor shall promptly notify the lenders under
        the
        relevant Senior Indebtedness Facilities of such Servicing Guarantor or the
        trustee, agent or representative of such Senior Indebtedness Facility of
        such
        demand; provided
        that any
        failure to give such notice shall have no effect whatsoever on the provisions
        of
        this Article XIII. If any MSR Advances of a Servicing Guarantor are
        outstanding, such Servicing Guarantor may not pay its Guarantee until five
        Business Days after the trustee, agent or representatives of all the holders
        of
        such Senior Indebtedness receive notice of such acceleration and, thereafter,
        may pay its Guarantee only if this Indenture otherwise permits payment at
        that
        time.

       

      SECTION
        10.05.  When
        Distribution Must Be Paid Over.
        If
        a
        distribution is made to Holders that, due to the subordination provisions,
        should not have been made to them, such Holders are required to hold it in
        trust
        for the holders of Senior Indebtedness of the relevant Servicing Guarantor
        and
        pay it over to them as their interests may appear.

       

      SECTION
        10.06.  Subrogation.
        After
        all Senior Indebtedness of a Servicing Guarantor is paid in full and until
        the
        Notes are paid in full, Holders shall be subrogated to the rights of holders
        of
        such Senior Indebtedness to receive distributions applicable to such Senior
        Indebtedness. A distribution made under this Article XIII to holders of
        such Senior Indebtedness

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

      which
        otherwise would have been made to Holders is not, as between the relevant
        Servicing Guarantor and Holders, a payment by such Servicing Guarantor on
        such
        Senior Indebtedness.

       

      SECTION
        10.07.  Relative
        Rights.
        This
        Article XIII defines the relative rights of Holders and holders of Senior
        Indebtedness of a Servicing Guarantor. Nothing in this Indenture
        shall:

       

      (i)  impair,
        as between such Servicing Guarantor and Holders, the obligation of such
        Servicing Guarantor, which is absolute and unconditional, to make payments
        under
        its Guarantee in accordance with its terms;

       

      (ii)  prevent
        the Trustee or any Holder from exercising its available remedies upon a default
        by such Servicing Guarantor under its obligations with respect to its Guarantee,
        subject to the rights of holders of Senior Indebtedness of such Servicing
        Guarantor to receive payments or distributions otherwise payable to Holders
        and
        such other rights of such holders of Senior Indebtedness as set forth herein;
        or

       

      (iii)  affect
        the relative rights of Holders and creditors of such Servicing Guarantor
        other
        than their rights in relation to holders of Senior Indebtedness.

       

      SECTION
        10.08.  Subordination
        May Not Be Impaired by a
        Servicing Guarantor.
        No
        right of any holder of Senior Indebtedness of a Servicing Guarantor to enforce
        the subordination of the obligations of such Guarantor under its Guarantee
        shall
        be impaired by any act or failure to act by such Servicing Guarantor or by
        its
        failure to comply with this Indenture.

       

      SECTION
        10.09.  Rights
        of Trustee and Paying Agent.
        Notwithstanding
        Section 13.03 hereof, the Trustee or any Paying Agent may continue to make
        payments on the Notes and shall not be charged with knowledge of the existence
        of facts that would prohibit the making of any payments unless, not less
        than
        two Business Days prior to the date of such payment, a Responsible Officer
        of
        the Trustee receives notice satisfactory to him that payments may not be
        made
        under this Article XIII. A Servicing Guarantor, the Registrar, the Paying
        Agent, a trustee, agent or representative or a holder of Senior Indebtedness
        of
        such Servicing Guarantor shall be entitled to give the notice; provided,
        however,
        that,
        if an issue of Senior Indebtedness of such Servicing Guarantor has a trustee,
        agent or representative, only the trustee, agent or representative shall
        be
        entitled to give the notice.

       

      The
        Trustee in its individual or any other capacity shall be entitled to hold
        Senior
        Indebtedness of a Servicing Guarantor with the same rights it would have
        if it
        were not Trustee. The Registrar and the Paying Agent shall be entitled to
        do the
        same with like rights. The Trustee shall be entitled to all the rights set
        forth
        in this Article XIII with respect to any Senior Indebtedness of a Servicing
        Guarantor which may at any time be held by it, to the same extent as any
        other
        holder of such Senior Indebtedness; and nothing in Article VII shall
        deprive the Trustee of any of its rights as such holder. Nothing in this
        Article XIII shall apply to claims of, or payments to, the Trustee under or
        pursuant to Section 7.07 hereof or any other Section of this
        Indenture.

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

      Distribution
        or Notice to Representative.
        Whenever a distribution is to be made or a notice given to holders of Senior
        Indebtedness of a Servicing Guarantor, the distribution may be made and the
        notice given to their trustee, agent or representative (if any).

       

      SECTION
        10.10.  Article XIII
        Not to Prevent Events of Default or Limit Right To Demand
        Payment.
        The
        failure of a Servicing Guarantor to make a payment pursuant its Guarantee
        by
        reason of any provision in this Article XIII shall not be construed as
        preventing the occurrence of a default by such Guarantor under its Guarantee.
        Nothing in this Article XIII shall have any effect on the right of the
        Holders or the Trustee to make a demand for payment on a Servicing Guarantor
        pursuant to Article X hereof.

       

      SECTION
        10.11.  Trust
        Moneys Not Subordinated.
        Notwithstanding anything contained herein to the contrary, payments from
        money
        or the proceeds of Government Securities held in trust by the Trustee for
        the
        payment of principal of and interest on the Notes pursuant to Article VIII
        or Article XII hereof shall not be subordinated to the prior payment of any
        Senior Indebtedness of any Servicing Guarantor or subject to the restrictions
        set forth in this Article XIII, and none of the Holders shall be obligated
        to pay over any such amount to such Servicing Guarantor or any holder of
        Senior
        Indebtedness of such Servicing Guarantor or any other creditor of such Servicing
        Guarantor, provided
        that the
        subordination provisions of this Article XIII were not violated at the time
        the applicable amounts were deposited in trust pursuant to Article VIII or
        Article XII hereof, as the case may be

       

      SECTION
        10.12.  Trustee
        Entitled to Rely.
        Upon
        any payment or distribution pursuant to this Article XIII, the Trustee and
        the Holders shall be entitled to rely (a) upon any order or decree of a
        court of competent jurisdiction in which any proceedings of the nature referred
        to in Section 13.02 hereof are pending, (b) upon a certificate of the
        liquidating trustee or agent or other Person making such payment or distribution
        to the Trustee or to the Holders or (c) upon the trustee, agent or
        representatives of Senior Indebtedness of a Servicing Guarantor for the purpose
        of ascertaining the Persons entitled to participate in such payment or
        distribution, the holders of such Senior Indebtedness and other Indebtedness
        of
        such Servicing Guarantor, the amount thereof or payable thereon, the amount
        or
        amounts paid or distributed thereon and all other facts pertinent thereto
        or to
        this Article XIII. In the event that the Trustee determines, in good faith,
        that evidence is required with respect to the right of any Person as a holder
        of
        Senior Indebtedness of a Servicing Guarantor to participate in any payment
        or
        distribution pursuant to this Article XIII, the Trustee shall be entitled
        to request such Person to furnish evidence to the reasonable satisfaction
        of the
        Trustee as to the amount of such Senior Indebtedness held by such Person,
        the
        extent to which such Person is entitled to participate in such payment or
        distribution and other facts pertinent to the rights of such Person under
        this
        Article XIII, and, if such evidence is not furnished, the Trustee shall be
        entitled to defer any payment to such Person pending judicial determination
        as
        to the right of such Person to receive such payment. The provisions of Sections
        7.01 and 7.02 hereof shall be applicable to all actions or omissions of actions
        by the Trustee pursuant to this Article XIII.

       

      SECTION
        10.13.  Trustee
        to Effectuate Subordination.
        A
        Holder
        by its acceptance of a Note agrees to be bound by this Article XIII and
        authorizes and expressly directs the Trustee, on his behalf, to take such
        action
        as may be necessary or appropriate to effectuate the

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

      subordination
        between the Holders and the holders of Senior Indebtedness of a Servicing
        Guarantor as provided in this Article XIII and appoints the Trustee as
        attorney-in-fact for any and all such purposes.

       

      SECTION
        10.14.  Trustee
        Not Fiduciary for Holders of Senior Indebtedness of Servicing
        Guarantors.
        The
        Trustee shall not be deemed to owe any fiduciary duty to the holders of Senior
        Indebtedness of a Servicing Guarantor and shall not be liable to any such
        holders if it shall mistakenly pay over or distribute to Holders or such
        Servicing Guarantor or any other Person, money or assets to which any holders
        of
        Senior Indebtedness of such Servicing Guarantor shall be entitled by virtue
        of
        this Article XIII or otherwise.

       

      SECTION
        10.15.  Reliance
        by Holders of Senior Indebtedness of a Servicing Guarantor on Subordination
        Provisions.
        Each
        Holder by accepting a Note acknowledges and agrees that the foregoing
        subordination provisions are, and are intended to be, an inducement and a
        consideration to each holder of any Senior Indebtedness of a Servicing
        Guarantor, whether such Senior Indebtedness was created or acquired before
        or
        after the issuance of the Notes, to acquire and continue to hold, or to continue
        to hold, such Senior Indebtedness and such holder of such Senior Indebtedness
        shall be deemed conclusively to have relied on such subordination provisions
        in
        acquiring and continuing to hold, or in continuing to hold, such Senior
        Indebtedness.

       

      Without
        in any way limiting the generality of the foregoing paragraph, the holders
        of
        Senior Indebtedness of a Servicing Guarantor may, at any time and from time
        to
        time, without the consent of or notice to the Trustee or the Holders, without
        incurring responsibility to the Trustee or the Holders and without impairing
        or
        releasing the subordination provided in this Article XIII or the
        obligations hereunder of the Holders to the holders of the Senior Indebtedness
        of such Servicing Guarantor, do any one or more of the following:
        (i) change the manner, place or terms of payment or extend the time of
        payment of, or renew or alter, Senior Indebtedness of such Servicing Guarantor,
        or otherwise amend or supplement in any manner Senior Indebtedness of such
        Servicing Guarantor, or any instrument evidencing the same or any agreement
        under which Senior Indebtedness of such Servicing Guarantor is outstanding;
        (ii) sell, exchange, release or otherwise deal with any property pledged,
        mortgaged or otherwise securing Senior Indebtedness of such Servicing Guarantor;
        (iii) release any Person liable in any manner for the payment or collection
        of Senior Indebtedness of such Servicing Guarantor; and (iv) exercise or
        refrain from exercising any rights against such Servicing Guarantor and any
        other Person.

       

      [Signatures
        on following page]

      

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

          
            

          

        

      

      Dated
        as
        of May 4, 2006

      COMPANY

       

      SAXON
        CAPITAL, INC.

       

       

      By:   

       

       

      Name: 

       

       

      Title: 

       

      GUARANTORS

       

      SAXON
        FUNDING MANAGEMENT, INC., as Guarantor

       

       

      By:   

       

       

      Name: 

       

       

      Title: 

       

      SAXON
        CAPITAL HOLDINGS, INC., as Guarantor

       

       

      By:   

       

       

      Name: 

       

       

      Title: 

       

      SCI
        SERVICES, INC., as Guarantor

       

       

      By:   

       

       

      Name: 

       

       

      Title: 

       

      SAXON
        MORTGAGE SERVICES, INC., as Guarantor

       

       

      By:   

       

       

      Name: 

       

       

      Title: 

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

       

      SAXON
        MORTGAGE, INC., as Guarantor

       

       

      By:   

       

       

      Name: 

       

       

      Title: 

       

      SAXON
        HOLDING, INC., as Guarantor

       

       

      By:   

       

       

      Name: 

       

       

      Title: 

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

       

      TRUSTEE

       

       

      DEUTSCHE
        BANK TRUST COMPANY AMERICAS, as Trustee

       

       

      By:   

       

       

      Name: 

       

       

      Title: 

       

       

      By:   

       

       

      Name: 

       

       

      Title: 

       

      

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

          
            

          

        

      

      EXHIBIT
        A

       

      THE
        HOLDER OF THIS NOTE BY ACCEPTANCE HEREOF ALSO AGREES, REPRESENTS AND WARRANTS
        THAT IF IT IS A PURCHASER IN A SALE THAT OCCURS OUTSIDE THE UNITED STATES
        WITHIN
        THE MEANING OF REGULATION S OF THE SECURITIES ACT, IT ACKNOWLEDGES THAT,
        UNTIL
        EXPIRATION OF THE “40-DAY DISTRIBUTION COMPLIANCE PERIOD” WITHIN THE MEANING OF
        RULE 903 OF REGULATION S, ANY OFFER OR SALE OF THIS NOTE SHALL NOT BE MADE
        BY IT
        TO A U.S. PERSON TO OR FOR THE ACCOUNT OR BENEFIT OF A U.S. PERSON WITHIN
        THE
        MEANING OF RULE 902(k) UNDER THE SECURITIES ACT.1  This
        paragraph should be included only for Regulation S Global
        Notes.

       

      UNLESS
        THIS CERTIFICATE IS PRESENTED BY AN AUTHORIZED REPRESENTATIVE OF THE DEPOSITORY
        TRUST COMPANY, TO THE COMPANY OR ITS AGENT FOR REGISTRATION OR TRANSFER,
        EXCHANGE OR PAYMENT, AND ANY CERTIFICATE ISSUED IS REGISTERED IN THE NAME
        OF
        CEDE & CO. OR TO SUCH OTHER ENTITY AS IS REQUIRED BY AN AUTHORIZED
        REPRESENTATIVE OF THE DEPOSITORY TRUST COMPANY OR SUCH OTHER REPRESENTATIVE
        OF
        THE DEPOSITORY TRUST COMPANY OR SUCH OTHER NAME AS IS REQUESTED BY AN AUTHORIZED
        REPRESENTATIVE OF THE DEPOSITORY TRUST COMPANY (AND ANY PAYMENT HEREON IS
        MADE
        TO CEDE & CO. OR TO SUCH OTHER ENTITY AS IS REQUESTED BY AN AUTHORIZED
        REPRESENTATIVE OF THE DEPOSITORY TRUST COMPANY) ANY TRANSFER, PLEDGE OR OTHER
        USE HEREOF FOR VALUE OR OTHERWISE BY OR TO ANY PERSON IS WRONGFUL SINCE THE
        REGISTERED OWNER HEREOF, CEDE & CO., HAS AN INTEREST HEREIN.2  This
        paragraph should be included only if the Notes are issued in global
        form.

       

      TRANSFERS
        OF THIS GLOBAL SECURITY SHALL BE LIMITED TO TRANSFERS IN WHOLE, BUT NOT IN
        PART,
        TO NOMINEES OF CEDE & CO. OR TO A SUCCESSOR THEREOF OR SUCH SUCCESSOR’S
        NOMINEE.3  This
        paragraph should be included only if the Notes are issued in global
        form.,4  This
        note may be transferred in accordance with Section 2.16 of the
        Indenture.

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

      THE
        SECURITY HAS NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED
        THE (“SECURITIES ACT”), OR THE SECURITIES LAWS OF ANY STATE OR OTHER
        JURISDICTION. NEITHER THIS SECURITY NOR ANY INTEREST OR PARTICIPATION HEREIN
        MAY
        BE REOFFERED, SOLD, ASSIGNED, TRANSFERRED, PLEDGED, ENCUMBERED OR OTHERWISE
        DISPOSED OF IN THE ABSENCE OF SUCH REGISTRATION OR UNLESS SUCH TRANSACTION
        IS
        EXEMPT FROM, OR NOT SUBJECT TO, SUCH REGISTRATION. THE HOLDER OF THIS SECURITY,
        BY ITS ACCEPTANCE HEREOF, AGREES ON ITS OWN BEHALF AND ON BEHALF OF ANY INVESTOR
        ACCOUNT FOR WHICH IT HAS PURCHASED SECURITIES, TO OFFER, SELL OR OTHERWISE
        TRANSFER SUCH SECURITY, PRIOR TO THE DATE (THE “RESALE RESTRICTION TERMINATION
        DATE”) THAT IS IN
        THE CASE OF NOTES OFFERED AND SOLD UNDER RULE 144A: TWO YEARS AND IN THE
        CASE OF
        NOTES OFFERED AND SOLD UNDER REGULATIONS S: 40
        DAYS
        AFTER THE LATER OF THE ORIGINAL ISSUE DATE HEREOF AND THE LAST DATE ON WHICH
        THE
        COMPANY OR ANY AFFILIATE OF THE COMPANY WAS THE OWNER OF THIS SECURITY (OR
        ANY
        PREDECESSOR OF SUCH SECURITY), ONLY (A) TO THE COMPANY, (B) PURSUANT TO A
        REGISTRATION STATEMENT THAT HS BEEN DECLARED EFFECTIVE UNDER THE SECURITIES
        ACT,
        (C) FOR SO LONG AS THE SECURITIES ARE ELIGIBLE FOR RESALE PURSUANT TO RULE
        144A
        UNDER THE SECURITIES ACT THAT PURCHASES FOR ITS OWN ACCOUNT OR FOR THE ACCOUNT
        OF A QUALIFIED INSTITUTIONAL BUYER TO WHOM NOTICE IS GIVEN THAT THE TRANSFER
        IS
        BEING MADE IN RELIANCE ON RULE 144A, (D) PURSUANT TO OFFERS AND SALES THAT
        OCCUR
        OUTSIDE THE UNITED STATES WITHIN THE MEANING OF REGULATION S UNDER THE
        SECURITIES ACT, (E) TO AN INSTITUTIONAL “ACCREDITED INVESTOR” WITHIN THE MEANING
        OF RULE 501 (a)(1), (2), (3) OR (7) UNDER THE SECURITIES ACT THAT IS AN
        INSTITUTIONAL ACCREDITED INVESTOR ACQUIRING THE SECURITY FOR ITS OWN ACCOUNT
        OR
        FOR THE ACCOUNT OF SUCH AN INSTITUTIONAL ACCREDITED INVESTOR, IN EACH CASE
        IN A
        MINIMUM PRINCIPAL AMOUNT OF THE SECURITIES OF $250,000, FOR INVESTMENT PURPOSES
        AND NOT WITH A VIEW TO OR FOR OFFER OR SALE IN CONNECTION WITH ANY DISTRIBUTION
        IN VIOLATION OF THE SECURITIES ACT, OR (F) PURSUANT TO ANOTHER AVAILABLE
        EXEMPTION FROM THE REGISTRATION REQUIREMENTS OF THE SECURITIES ACT, SUBJECT
        TO
        THE COMPANY’S AND THE TRUSTEE’S RIGHT TO CLAUSES (E) OR (F) TO REQUIRE THE
        DELIVERY OF AN OPINION OF COUNSEL, CERTIFICATION AND/OR OTHER INFORMATION
        SATISFACTORY TO EACH OF THEM. THIS LEGEND WILL BE REMOVED UPON THE REQUEST
        OF
        THE HOLDER AFTER THE RESALE RESTRICTION TERMINATION DATE. 

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

      [Face
        of
        Note]

       

      CUSIP
        NO.
        [_________]5  QIB
        CUSIP: 80556PAA2

       

      Regulation
        S CUSIP: U8038T AAO

       

      IAI
        CUSIP: 80556PAB0

       

      Exchange
        Note CUSIP: 80556PAC8

       

      Senior
        Notes due 2014

       

      No.
        ___

       

      $[__________________]
        

       

      SAXON
        CAPITAL, INC. promises to pay to
        _________________________________________________________ or its registered
        assigns, the principal amount of _____________________________________________
        Dollars ($______________________________) on May 1, 2014.

       

      Interest
        Payment Dates: May 1 and November 1

       

      Record
        Dates: April 15 and October 15

       

      Subject
        to Restrictions set forth in this Note.

       

      IN
        WITNESS WHEREOF, Saxon Capital, Inc. has caused this instrument to be duly
        executed.

       

      Dated:
        [            ]

      SAXON
        CAPITAL, INC.

       

       

      By:   

       

       

      Name: 

       

       

      Title: 

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

      This
        is
        one of the Notes referred to in the within-mentioned Indenture:

       

      DEUTSCHE
        BANK TRUST

       

      COMPANY
        AMERICAS, as Trustee

       

       

      By:   

       

       

      Authorized
        Signatory

       

       

      By:   

       

       

      Authorized
        Signatory

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

      [Back
        of
        Note]

       

      Senior
        Notes due 2014

       

      1.
         Interest

       

      Saxon
        Capital, Inc., a Maryland corporation (the “Company”),
        promises to pay cash interest on the principal amount of this Note at the
        rate
        of 12% per annum from May 4, 2006 until maturity. The interest rate on the
        Notes is subject to increase pursuant to the provisions of the Registration
        Rights Agreement entered into on the Measurement Date. The Company will pay
        interest semi-annually in arrears on May 1 and November 1 of each year
        (each an “Interest
        Payment Date”),
        or if
        any such day is not a Business Day, on the next succeeding Business Day.
        Interest on the Notes will accrue from and including the most recent date
        to
        which interest has been paid or, if no interest has been paid, from May 4,
        2006; provided
        that if
        there is no existing Default in the payment of interest, and if this Note
        is
        authenticated between a record date referred to on the face and the next
        succeeding Interest Payment Date, interest shall accrue from and including
        such
        next succeeding Interest Payment Date; provided,
        further,
        that
        the first Interest Payment Date shall be November 1, 2006. The Company
        shall pay interest (including post-petition interest in any proceeding under
        any
        Bankruptcy Law) on overdue principal and premium, if any, from time to time
        on
        demand at the rate then in effect; 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 periods)
        from
        time to time on demand at the same rate. Interest will be computed on the
        basis
        of a 360-day year of twelve 30-day months.

       

      
        	
                2.

              	
                Method
                  of Payment

              

      

       

      The
        Company shall pay interest on the Notes (except defaulted interest) to the
        Persons who are registered Holders of Notes at the close of business on the
        April 15 or October 15 next preceding the Interest Payment Date, even
        if such Notes are canceled after such record date and on or before such Interest
        Payment Date, except as provided in Section 2.12 of the Indenture with
        respect to defaulted interest. Payments in respect of the Notes represented
        by
        the Global Notes (including principal, premium, if any, and interest) will
        be
        made by wire transfer of immediately available funds to the accounts specified
        by the Global Note holder. With respect to Notes in certificated form, the
        Company will make all payments of principal, premium, if any, and interest,
        by
        wire transfer of immediately available funds to the accounts specified by
        the
        holders thereof or, if no such account is specified, by mailing a check to
        each
        such holder’s registered address. Such payment shall be in such coin or currency
        of the United States of America as at the time of payment is legal tender
        for
        payment of public and private debts.

       

      
        	
                3.

              	
                Paying
                  Agent and Registrar

              

      

       

      Initially,
        Deutsche Bank Trust Company Americas, the Trustee under the Indenture, will
        act
        as Paying Agent and Registrar. The Company may change any Paying Agent or
        Registrar without notice to any Holder. The Company or any of its Subsidiaries
        may act in any such capacity.

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

      4. Indenture

       

      The
        Company issued the Notes under an Indenture dated as of May 4, 2006 (the
        “Indenture”)
        among
        the Company, the Guarantors and the Trustee. Capitalized terms not otherwise
        defined herein are used herein as defined in the Indenture. The terms of
        the
        Notes include those stated in the Indenture and those made part of the Indenture
        by reference to the Trust Indenture Act of 1939, as amended (15 U.S. Code
        Sections 77aaa-77bbbb). The Notes are subject to all such terms, and Holders
        are
        referred to the Indenture and such Act for a statement of such terms. To
        the
        extent any provision of this Note conflicts with the express provisions of
        the
        Indenture, the provisions of the Indenture shall govern and be
        controlling.

       

      
        	
                5.

              	
                Optional
                  Redemption

              

      

       

      (a) At
        any
        time, or from time to time, on or prior to May 1, 2009, the Company may, at
        this option, use the net cash proceeds of one or more Equity Offerings to
        redeem
        up to 35% of the aggregate principal amount of the Initial Notes and any
        Additional Notes initially issued under the Indenture at a redemption price
        of
        112.000% of the principal amount thereof plus accrued and unpaid interest
        thereon, if any, to the date of redemption; provided
        that the
        Company makes such redemption not more than 90 days after the consummation
        of
        any such Equity Offering.

       

      (b) In
        addition, the Notes may be redeemed, in whole or in part, at any time prior
        to
        final maturity at the option of the Company, at a redemption price equal
        to 100%
        of the principal amount of the Notes redeemed plus the Applicable Premium
        as of,
        and accrued and unpaid interest to, the applicable redemption date.

       

      
        	
                6.
                  

              	
                Mandatory
                  Redemption and
                  Repurchase

              

      

       

      Except
        as
        otherwise provided in Paragraph 7 below, the Company shall not be required
        to make mandatory redemption payments with respect to the Notes or be required
        to repurchase any of the Notes.

       

      
        	
                7.

              	
                Repurchase
                  at Option of Holder

              

      

       

      (a) If
        there
        is a Change of Control, the Company shall make an offer (a “Change
        of Control Offer”)
        to
        repurchase all or any part (equal to $2,000 in minimum principal amount and
        integral multiples of $1,000) of each Holder’s Notes at a purchase price equal
        101% of the aggregate principal amount thereof plus (ii) accrued and unpaid
        cash
        interest thereon, if any, to the date of purchase. The Change of Control
        Offer
        shall be made in accordance with Section 4.16 of the Indenture (such sum,
        the
“Change
        of Control Payment”).
        

       

      (b) If
        the
        Company or a Restricted Subsidiary thereof consummates any Asset Sale, the
        Company may be required to offer to purchase the Notes in accordance with
        Section 4.11 of the Indenture.

       

      (c) If
        the
        Company consummates any Excess Cash Flow Offer, the Company may be required
        to
        offer to purchase the Notes in accordance with Section 4.17 of the Indenture.
        

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

      8. Denominations,
        Transfer, Exchange

       

      The
        Notes
        are in registered form without coupons in minimum denominations of $2,000
        and
        integral multiples of $1,000. The transfer of Notes may be registered and
        Notes
        may be exchanged as provided in the Indenture. The Registrar and the Trustee
        may
        require a Holder, among other things, to furnish appropriate endorsements
        and
        transfer documents, and the Company may require a Holder to pay any taxes
        and
        fees required by law or permitted by the Indenture. The Company need not
        exchange or register the transfer of any Note or portion of a Note selected
        for
        redemption or repurchase, except for the unredeemed or unrepurchased portion
        of
        any Note being redeemed or repurchased in part. Also, the Company need not
        exchange or register the transfer of any Notes for a period of 15 days before
        a
        selection of Notes to be redeemed or repurchased or during the period between
        a
        record date and the corresponding Interest Payment Date.

       

      
        	
                9.

              	
                Persons
                  Deemed Owners

              

      

       

      The
        registered Holder of a Note may be treated as its owner for all
        purposes.

       

      
        	
                10.

              	
                Amendment,
                  Supplement and Waiver

              

      

       

      Subject
        to certain exceptions, the Indenture, the Notes or the Guarantees may be
        amended
        or supplemented with the consent of the Holders of at least a majority in
        aggregate principal amount of the Notes then outstanding (including consents
        obtained in connection with a purchase of, or tender offer or exchange offer
        for, Notes), and any existing default or compliance with any provision of
        the
        Indenture, the Notes or the Guarantees may be waived with the consent of
        the
        Holders of a majority in aggregate principal amount of the Notes then
        outstanding (including consents obtained in connection with a purchase of,
        or
        tender offer or exchange offer for, Notes).

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

      11. Defaults
        and Remedies

       

      Each
        of
        the following is an Event of Default: (1) the failure to pay interest on
        any
        Notes when the same becomes due and payable and the default continues for
        a
        period of 30 days; (2) the failure to pay the principal on any Notes when
        such
        principal becomes due and payable, at maturity, upon redemption or otherwise
        (including the failure to make a payment to purchase Notes tendered pursuant
        to
        a Change of Control Offer or a Net Proceeds Offer); (3) a default in the
        observance or performance of any other covenant or agreement contained in
        the
        Indenture and such default continues for a period of 30 days after the Company
        receives written notice specifying the default (and demanding that such default
        be remedied) from the Trustee or the Holders of at least 25% of the outstanding
        principal amount of the Notes (except in the case of a default with respect
        to
        Section 5.01 as it relates to the Company, which will constitute an Event
        of
        Default with such notice requirement but without such passage of time
        requirement); (4) the failure to pay at final maturity (giving effect to
        any
        applicable grace periods and any extensions thereof) the principal amount
        of any
        Indebtedness (other than Funding Indebtedness) of the Company or any Restricted
        Subsidiary of the Company, or the acceleration of the final stated maturity
        of
        any such Indebtedness (which acceleration is not rescinded, annulled or
        otherwise cured within 20 days of receipt by the Company or such Restricted
        Subsidiary of notice of any such acceleration) if the aggregate principal
        amount
        of such Indebtedness, together with the principal amount of any other such
        Indebtedness in default for failure to pay principal at final maturity or
        which
        has been accelerated, aggregates $5.0 million or more at any time; (5) one
        or more judgments in an aggregate amount in excess of $5.0 million shall
        have
        been rendered against the Company or any of its Restricted Subsidiaries (other
        than a judgment or judgments in respect of Funding Indebtedness where the
        judgment creditor (in its capacity as such) does not have rights against
        assets
        of the Company and its Restricted Subsidiaries other than those assets that
        secure such Funding Indebtedness) and such judgments remain undischarged,
        unpaid
        or unstayed for a period of 60 days after such judgment or judgments become
        final and non-appealable (other than any judgments to the extent covered
        by an
        insurance company that has not contested coverage of such judgment or judgments
        in writing); (6) certain events of bankruptcy affecting the Company or any
        of
        its Significant Subsidiaries; or (7) any Guarantee of a Significant Subsidiary
        ceases to be in full force and effect or any Guarantee of a Significant
        Subsidiary is declared to be null and void and unenforceable or any Guarantee
        of
        a Significant Subsidiary is found to be invalid or any Significant Subsidiary
        that is a Guarantor denies its liability under its Guarantee (other than
        by
        reason of release of a Guarantor in accordance with the terms of the
        Indenture).

       

      If
        an
        Event of Default (other than an Event of Default specified in clause (6)
        above
        with respect to the Company) shall occur and be continuing, the Trustee or
        the
        Holders of at least 25% in the then outstanding principal amount of the Notes
        may declare the principal of and accrued interest on all the then outstanding
        Notes to be due and payable by notice in writing to the Company and the Trustee
        specifying the respective Event of Default and that it is a “notice of
        acceleration” (the “Acceleration
        Notice”),
        and
        the same shall become immediately due and payable. The Holders of a majority
        in
        the then outstanding principal amount of the Notes may waive any existing
        Default or Event of Default under the Indenture, and its consequences, except
        a
        default in the payment of the principal of or interest on any Notes. Holders
        of
        the Notes may not enforce the Indenture or the Notes except as provided in
        the
        Indenture and under the TIA. 

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

      Subject
        to all provisions of the Indenture and applicable law, the Holders of a majority
        in aggregate principal amount of the then outstanding Notes have the right
        to
        direct the time, method and place of conducting any proceeding for any remedy
        available to the Trustee or exercising any trust or power conferred on the
        Trustee.

       

      At
        any
        time after a declaration of acceleration with respect to the Notes, the Holders
        of a majority in the then outstanding principal amount of the Notes may rescind
        and cancel such declaration and its consequences: (i) if the rescission
        would not conflict with any judgment or decree; (ii) if all existing Events
        of Default have been cured or waived except nonpayment of principal or interest
        that has become due solely because of the acceleration; (iii) to the extent
        the payment of such interest is lawful, interest on overdue installments
        of
        interest and overdue principal, which has become due otherwise than by such
        declaration of acceleration, has been paid; and (iv) if the Company has
        paid the Trustee its reasonable compensation and reimbursed the Trustee for
        its
        expenses, disbursements and advances. No such rescission shall affect any
        subsequent Default or impair any right consequent thereto.

       

      Under
        the
        Indenture, the Company will be required to provide an officers’ certificate to
        the Trustee promptly upon any such officer obtaining knowledge of any Default
        or
        Event of Default (provided
        that
        such
        officers shall provide such certification at least annually whether or not
        they
        know of any Default or Event of Default) that has occurred and, if applicable,
        describe such Default or Event of Default and the status thereof.

       

      
        	
                12.

              	
                Trustee
                  Dealings with Company

              

      

       

      The
        Trustee, in its individual or any other capacity, may make loans to, accept
        deposits from, and perform services for the Company or its Affiliates, and
        may
        otherwise deal with the Company or its Affiliates, as if it were not the
        Trustee.

       

      
        	
                13.

              	
                No
                  Recourse Against
                  Others

              

      

       

      No
        past,
        present or future director, officer, employee, incorporator, agent or
        stockholder of the Company or any Guarantor, as such, will have any liability
        for obligations of the Company or the Guarantors under the Notes, the Indenture,
        the Guarantees, or for any claim based on, in respect of, or by reason of,
        such
        obligations or their creation. Each Holder by accepting a Note waives and
        releases all such liability. The waiver and release are part of the
        consideration for issuance of the Notes. 

       

      
        	
                14.

              	
                Governing
                  Law

              

      

       

      THE
        INTERNAL LAWS OF THE STATE OF NEW YORK SHALL GOVERN AND BE USED TO CONSTRUE
        THIS
        NOTE AND THE INDENTURE WITHOUT GIVING EFFECT TO THE APPLICABLE PRINCIPLES
        OF
        CONFLICTS OF LAWS TO THE EXTENT THAT THE APPLICATION OF THE LAWS OF ANOTHER
        JURISDICTION WOULD BE REQUIRED THEREBY. EACH OF THE PARTIES HERETO AND THE
        HOLDERS AGREE TO SUBMIT TO THE JURISDICTION OF THE COURTS OF THE STATE OF
        NEW
        YORK IN ANY ACTION OR PROCEEDING ARISING OUT OF OR RELATING TO THIS
        NOTE.

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

      15. Authentication

       

      This
        Note
        shall not be valid until authenticated by the manual signature of the Trustee
        or
        an authenticating agent.

       

      
        	
                16.

              	
                Abbreviations

              

      

       

      Customary
        abbreviations may be used in the name of a Holder or an assignee, such as:
        TEN
        COM (= tenants in common), TEN ENT (= tenants by the entireties), JT TEN
        (=
        joint tenants with right of survivorship and not as tenants in common), CUST
        (=
        Custodian), and U/G/M/A (= Uniform Gifts to Minors Act).

       

      
        	
                17.

              	
                Additional
                  Rights of Holders of Restricted Global Notes and Restricted Definitive
                  Notes

              

      

       

      In
        addition to the rights provided to Holders of Notes under the Indenture,
        Holders
        of Restricted Global Notes and Restricted Definitive Notes shall have all
        the
        rights set forth in the applicable Registration Rights Agreement. 

       

      
        	
                18.

              	
                CUSIP
                  Numbers

              

      

       

      Pursuant
        to a recommendation promulgated by the Committee on Uniform Security
        Identification Procedures, the Company have caused CUSIP numbers to be printed
        on the Notes and the Trustee may use CUSIP numbers in notices of redemption
        as a
        convenience to Holders. No representation is made as to the accuracy of such
        numbers either as printed on the Notes or as contained in any notice of
        redemption and reliance may be placed only on the other identification numbers
        placed thereon.

       

      The
        Company will furnish to any Holder upon written request and without charge
        a
        copy of the Indenture and/or any Registration Rights Agreement. Requests
        may be
        made to:

       

      Saxon
        Capital, Inc.

       

      4860
        Cox Road Suite 300

       

      Glen
        Allen, VA 23060

       

      Attention:
        Secretary

       

      19. Subordination
        of Certain Guarantees

       

      The
        Guarantees of each Servicing Guarantor are subordinated to its Senior
        Indebtedness on the terms and subject to the conditions set forth in the
        Indenture. To the extent provided in the Indenture, Senior Indebtedness of
        a
        Servicing Guarantor must be paid before the Guarantee of such Servicing
        Guarantor may be paid. The Company agrees, and each Holder by accepting a
        Note
        agrees, to the subordination provisions contained in the Indenture and
        authorizes the Trustee to give it effect and appoints the Trustee as
        attorney-in-fact for such purpose.

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

      ASSIGNMENT FORM

       

      To
        assign
        this Note, fill in the form below:

       

      (I)
        or
        (we) assign and transfer this Note to:

       

      (Insert
        assignee’s legal name)

       

      

      (Insert
        assignee’s soc. sec. or tax I.D. no.)

       

      

      (Print
        or
        type assignee’s name, address and zip code)

       

      and
        irrevocably appoint ________________________________________________ to transfer
        this Note on the books of the Company. The agent may substitute another to
        act
        for him.

       

      Date:   Your
        Signature:   

      (Sign
        exactly as your name appears

      on
        the
        face of this Note)

      Signature
        Guarantee*:  

       

      
        	
                *

              	
                Participant
                  in a recognized Signature Guarantee Medallion Program (or other
                  signature
                  guarantor acceptable to the
                  Trustee).

              

      

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

      OPTION
        OF HOLDER TO ELECT PURCHASE

       

      If
        you
        want to elect to have this Note purchased by the Company pursuant to
        Section 4.11, 4.16 or 4.17 of the Indenture, check the appropriate box
        below:

       

      o
        Section 4.11

       

      o
        Section 4.16

       

      o
        Section 4.17

       

      If
        you
        want to elect to have only part of this Note purchased by the Company pursuant
        to Section 4.11, 4.16 or 4.17 of the Indenture, state the amount you elect
        to have purchased: $_______________.

       

      Date:   Your
        Signature:   

      (Sign
        exactly as your name appears

      on
        the
        face of this Note)

      Tax
        Identification No.:  

       

      Signature
        Guarantee*: 

       

      
        	
                *

              	
                Participant
                  in a recognized Signature Guarantee Medallion Program (or other
                  signature
                  guarantor acceptable to the
                  Trustee).

              

      

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

      CERTIFICATE
        TO BE DELIVERED UPON EXCHANGE OR

       

      REGISTRATION
        OF TRANSFER RESTRICTED NOTES

       

      Saxon
        Capital, Inc.

      4860
        Cox
        Road, Suite 300

      Glen
        Allen, Virginia 23060

       

      Attention:
        Chief Financial Officer

       

      Deutsche
        Bank Trust Company Americas

      60
        Wall
        Street

      New
        York,
        NY 10005

       

      Attention:
        Trust and Securities Services

       

      Re: CUSIP
        #
        _________________

       

      Reference
        is hereby made to the Indenture, dated as of May 4, 2006 (the “Indenture”),
        among
        Saxon Capital, Inc. (the “Company”
and
        the
“Company”),
        the
        Guarantors, and Deutsche Bank Trust Company Americas, as Trustee. Capitalized
        terms used but not defined herein shall have the meanings set forth in the
        Indenture.

       

      This
        certificate relates to $_________ principal amount of Notes held in (check
        applicable space) ____ book-entry or _____ definitive form by the
        undersigned.

       

      The
        undersigned __________________ (transferor) (check one box below):

       

      
        	
                o

              	
                hereby
                  requests the Registrar to deliver in exchange for its beneficial
                  interest
                  in the Global Note held by the Depositary a Note or Notes in definitive,
                  registered form of authorized denominations and an aggregate principal
                  amount equal to its beneficial interest in such Global Note (or
                  the
                  portion thereof indicated above), in accordance with Section 2.06
                  of the
                  Indenture;

              

      

       

      
        	
                o

              	
                hereby
                  requests the Trustee to exchange or register the transfer of a
                  Note or
                  Notes to _____________
                  (transferee).

              

      

       

      In
        connection with any transfer of any of the Notes evidenced by this certificate
        occurring prior to the expiration of the periods referred to in Rule 144(k)
        under the Securities Act of 1933, as amended, the undersigned confirms that
        such
        Notes are being transferred in accordance with its terms:

       

      CHECK
        ONE BOX BELOW:

       

      
        	
                (1)

              	
                o

              	
                to
                  the Company or any of its subsidiaries;
                  or

              

      

       

      
        	
                (2)

              	
                o

              	
                pursuant
                  to an effective registration statement under the Securities Act
                  of 1933,
                  as amended; or

              

      

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

      
        	
                (3)

              	
                o

              	
                inside
                  the United States to a “qualified institutional buyer” (as defined in
                  Rule 144A under the Securities Act of 1933, as amended) that
                  purchases for its own account or for the account of a qualified
                  institutional buyer to whom notice is given that such transfer
                  is being
                  made in reliance on Rule 144A under the Securities Act of 1933, as
                  amended, in each case pursuant to and in compliance with Rule 144A
                  thereunder; or

              

      

       

      
        	
                (4)

              	
                o

              	
                outside
                  the United States in an offshore transaction within the meaning
                  of
                  Regulation S under the Securities Act of 1933, as amended, in
                  compliance with Rule 904 thereunder;
                  or

              

      

       

      
        	
                (5)

              	
                o

              	
                to
                  an institutional “accredited investor” (as defined in Rule
                  501(a)(1),(2),(3) or (7) under the Securities Act of 1933) that
                  has
                  furnished to the Trustee a signed letter containing certain
                  representations and agreements; or

              

      

       

      
        	
                (6)

              	
                o

              	
                in
                  another transaction that does not require registration under the
                  Securities Act.

              

      

       

      Unless
        one of the boxes is checked, the Registrar will refuse to register any of
        the
        Notes evidenced by this certificate in the name of any person other than
        the
        registered holder thereof.

       

       

       

      Signature

       

      Signature
        Guarantee:  

      (Signature
        must be guaranteed by a participant in a recognized signature guarantee
        medallion program)

       

      TO
        BE COMPLETED BY PURCHASER IF (3) ABOVE IS CHECKED.

       

      The
        undersigned represents and warrants that it is purchasing this Note for its
        own
        account or an account with respect to which it exercises sole investment
        discretion and that it and any such account is a “qualified institutional buyer”
within the meaning of Rule 144A under the Securities Act of 1933, as
        amended (“Rule 144A”), and is aware that the sale to it is being made in
        reliance on Rule 144A and acknowledges that it has received such
        information regarding the Company as the undersigned has requested pursuant
        to
        Rule 144A or has determined not to request such information and that it is
        aware that the transferor is relying upon the undersigned’s foregoing
        representations in order to claim the exemption from registration provided
        by
        Rule 144A.

       

      [Name
        of
        Transferee]

      

      
        	
                Dated:
                  _________________________

              	 	 

      

      NOTICE:
        To be executed by an executive officer

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

      SCHEDULE
        OF EXCHANGES OF INTERESTS IN THE GLOBAL NOTE6  Should
        be included only in Notes issued in global form.

       

      The
        following exchanges of a part of this Global Note for an interest in another
        Global Note or for a Definitive Note, or exchanges of a part of another Global
        Note or Definitive Note for an interest in this Global Note, have been
        made:

       

      
        	
                Date
                  of

                Exchange

              	
                Amount
                  of decrease

                in
                  Principal Amount of this Global Note

              	
                Amount
                  of increase

                in
                  Principal Amount of this Global Note

              	
                Principal
                  Amount of

                this
                  Global Note

                following
                  such

                decrease
                  (or increase)

              	
                Signature
                  of authorized officer of Trustee or

                Note
                  Custodian

              
	 	 	 	 	 

      

      

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

      GUARANTEE

       

      For
        value
        received, the undersigned hereby unconditionally guarantees, to the Holder
        of
        this Note the cash payments in United States dollars of principal of, premium,
        if any, and interest on this Note in the amounts and at the times when due
        and
        interest on the overdue principal, premium, if any, and interest, if any,
        of
        this Note, if lawful, and the payment or performance of all other Obligations
        of
        the Company under the Indenture or this Note, to the Holder of this Note
        and the
        Trustee, in accordance with the Note, Article X of the Indenture and this
        Guarantee, including the terms stated in the Note, the Indenture and this
        Guarantee. The validity and enforceability of this Guarantee shall not be
        affected by the fact that it is not affixed to any particular Note. Capitalized
        terms used but not defined herein shall have the meanings ascribed to them
        in
        the Indenture dated as of May 4, 2006 among Saxon Capital, Inc., a Maryland
        corporation, the undersigned, and Deutsche Bank Trust Company Americas, as
        trustee (as amended or supplemented, the “Indenture”).

       

      THIS
        GUARANTEE SHALL BE GOVERNED BY, AND CONSTRUED IN ACCORDANCE WITH, THE LAWS
        OF
        THE STATE OF NEW YORK BUT WITHOUT GIVING EFFECT TO APPLICABLE PRINCIPLES
        OF
        CONFLICTS OF LAW TO THE EXTENT THAT THE APPLICATION OF THE LAW OF ANOTHER
        JURISDICTION WOULD BE REQUIRED THEREBY. The
        undersigned hereby agrees to submit to the jurisdiction of the courts of
        the
        State of New York in any action or proceeding arising out of or relating
        to this
        Guarantee.

       

      This
        Guarantee is subject to release upon the terms set forth in the
        Indenture.

       

      [Guarantor]

       

       

      By:    

       

       

      Name: 

       

       

      Title: 

       

      

      

        

        
          
          

        

      

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

          
            

          

        

      

      EXHIBIT
        B

       

      [FORM
        OF CERTIFICATE TO BE DELIVERED

       

      IN
        CONNECTION WITH TRANSFERS PURSUANT TO RULE 144A]

       

      Saxon
        Capital, Inc.

      4860
        Cox
        Road, Suite 300

      Glen
        Allen, Virginia 23060

       

      Attention:
        Chief Financial Officer

       

      Deutsche
        Bank Trust Company Americas

      60
        Wall
        Street

      New
        York,
        NY 10005

       

      Attention:
        Corporate Trust Department

       

      
        	 	
                Re:

              	
                Saxon
                  Capital, Inc. (the “Company”)

              

      

       

       

      SENIOR
        NOTES DUE 2014 (the “Notes”)

       

       

      Ladies
        and Gentlemen:

       

      In
        connection with our proposed sale of $________ aggregate principal amount
        of the
        Notes, we hereby certify that such transfer is being effected pursuant to
        and in
        accordance with Rule 144A (“Rule 144A”) under the United States Securities
        Act of 1933, as amended (the “Securities Act”), and, accordingly, we hereby
        further certify that the Notes are being transferred to a person that we
        reasonably believe is purchasing the Notes for its own account, or for one
        or
        more accounts with respect to which such person exercises sole investment
        discretion, and such person and each such account is a “qualified institutional
        buyer” within the meaning of Rule 144A in a transaction meeting the
        requirements of Rule 144A and such Notes are being transferred in
        compliance with any applicable blue sky securities laws of any state of the
        United States.

       

      You
        and
        the Company are entitled to rely upon this letter and are irrevocably authorized
        to produce this letter or a copy hereof to any interested party in any
        administrative or legal proceedings or official inquiry with respect to the
        matters covered hereby.

       

      Very
        truly yours,

       

      [Name
        of
        Transferor]

       

       

      By:   

       

       

      Authorized
        Signature

       

      

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

          
            

          

        

      

      EXHIBIT
        C

       

      [FORM
        OF CERTIFICATE TO BE DELIVERED

       

      IN
        CONNECTION WITH TRANSFERS

       

      PURSUANT
        TO REGULATION S]

       

      Saxon
        Capital, Inc.

      4860
        Cox
        Road, Suite 300

      Glen
        Allen, Virginia 23060

       

      Attention:
        Chief Financial Officer

       

      Deutsche
        Bank Trust Company Americas

      60
        Wall
        Street

      New
        York,
        NY 10005

       

      Attention:
        Corporate Trust Department

       

      
        	 	
                Re:

              	
                Saxon
                  Capital, Inc. (the “Company”)

              

      

       

      12%
        SENIOR NOTES DUE 2014 (the “Notes”)

       

      Ladies
        and Gentlemen:

       

      In
        connection with our proposed sale of $________ aggregate principal amount
        of the
        Notes, we confirm that such sale has been effected pursuant to and in accordance
        with Regulation S under the United States Securities Act of 1933, as
        amended (the “Securities Act”), and, accordingly, we represent
        that:

       

       

      (1) the
        offer
        of the Notes was not made to a person in the United States;

       

      (2) either
        (a) at the time the buy order was originated, the transferee was outside
        the United States or we and any person acting on our behalf reasonably believed
        that the transferee was outside the United States or (b) the transaction
        was executed in, on or through the facilities of a designated off-shore
        securities market and neither we nor any person acting on our behalf knows
        that
        the transaction has been pre-arranged with a buyer in the United
        States;

       

      (3) no
        directed selling efforts have been made in the United States in contravention
        of
        the requirements of Rule 903(b) or Rule 904(b) of Regulation S,
        as applicable; 

       

      (4) the
        transaction is being made in compliance with any applicable securities laws
        of
        any state of the United States or any other applicable jurisdiction;
        and

       

      (5) the
        transaction is not part of a plan or scheme to evade the registration
        requirements of the Securities Act and not the result of offers or sales
        specifically targeted to an identifiable group of U.S. citizens
        abroad.

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

      If
        the
        transfer of the beneficial interest occurs prior to the expiration of the
        40-day
        distribution compliance period set forth in Regulation S, the transferred
        beneficial interest will be held immediately thereafter through Euroclear
        or
        Clearstream.

       

      In
        addition, if the sale is made during a restricted period and the provisions
        of
        Rule 903(c)(3) or Rule 904(c)(1) of Regulation S are applicable
        thereto, we confirm that such sale has been made in accordance with the
        applicable provisions of Rule 903(c)(3) or Rule 904(c)(1), as the case
        may be.

       

      The
        Company and you are entitled to rely upon this letter and are irrevocably
        authorized to produce this letter or a copy hereof to any interested party
        in
        any administrative or legal proceedings or official inquiry with respect
        to the
        matters covered hereby. Terms used in this certificate have the meanings
        set
        forth in Regulation S.

       

      Very
        truly yours,

       

      [Name
        of
        Transferor]

       

       

      By:   

       

       

      Authorized
        Signature

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

          
            

          

        

      

      EXHIBIT
        D

       

      FORM
        OF CERTIFICATE FROM

       

      ACQUIRING
        ACCREDITED INVESTOR

       

      Saxon
        Capital, Inc.

      4860
        Cox
        Road, Suite 300

      Glen
        Allen, Virginia 23060

       

      Deutsche
        Bank Trust Company Americas

      60
        Wall
        Street

      New
        York,
        NY 10005

       

      Attention:
        Corporate Trust Department

       

      
        	 	
                Re:

              	
                12%
                  Senior Notes due 2004

              

      

       

      Reference
        is hereby made to the Indenture, dated as of May 4, 2006 (the “Indenture”),
        among
        Saxon Capital, Inc. (the “Company”
and
        the
“Company”),
        the
        Guarantors, and Deutsche Bank Trust Company Americas, as trustee. Capitalized
        terms used but not defined herein shall have the meanings given to them in
        the
        Indenture.

       

      In
        connection with our proposed purchase of $____________ aggregate principal
        amount of:

       

      (i)o
        a
        beneficial interest in a Global Note, or

       

      (ii)o
        a
        Definitive Note,

       

      we
        confirm that:

       

      1. We
        understand that any subsequent transfer of the Notes or any interest therein
        is
        subject to certain restrictions and conditions set forth in the Indenture,
        and
        the undersigned agrees to be bound by, and not to resell, pledge or otherwise
        transfer the Notes or any interest therein except in compliance with, such
        restrictions and conditions and the United States Securities Act of 1933,
        as
        amended (the “Securities
        Act”).

       

      2. We
        understand that the offer and sale of the Notes have not been registered
        under
        the Securities Act, and that the Notes and any interest therein may not be
        offered or sold except as permitted in the following sentence. We agree,
        on our
        own behalf and on behalf of any accounts for which we are acting as hereinafter
        stated, that if we should sell the Notes or any interest therein, we will
        do so
        only (a) to the Company (b) so long as the Notes are eligible for resale
        pursuant to Rule 144A under the Securities Act to a person whom we
        reasonably believe is a qualified institutional buyer within the meaning
        of Rule
        144A purchasing for its own account or for the account of a qualified
        institutional buyer, in each case, to whom notice is given that the offer,
        resale, pledge or other transfer is being made in reliance on Rule 144A,
        (c) to non-U.S. persons in offshore transactions in accordance with
        Rule 904 of Regulation S under the Securities Act, 

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

      (d) after
        the later of the second anniversary of the issuance of the relevant Notes
        or the
        date that is three months after the Transferor has ceased to be an affiliate
        of
        the Company, (e) pursuant to an effective registration statement under the
        Securities Act or (f) in any other transaction that does not require
        registration under the Securities Act, and we further agree to provide to
        any
        person purchasing the Definitive Note or beneficial interest in a Global
        Note
        from us in a transaction meeting the requirements of any of clauses (a)
        through (f) of this paragraph a notice advising such purchaser that resales
        thereof are restricted as stated herein.

       

      3. We
        understand that, on any proposed resale of the Notes or beneficial interest
        therein, we will be required to furnish to you and the Company such
        certifications, legal opinions and other information as you and the Company
        may
        reasonably require to confirm that the proposed sale complies with the foregoing
        restrictions. We further understand that the Notes purchased by us will bear
        a
        legend to the foregoing effect.

       

      4. We
        are an
        institutional “accredited investor” (as defined in Rule 501(a)(1), (2), (3)
        or (7) of Regulation D under the Securities Act) and have such knowledge
        and experience in financial and business matters as to be capable of evaluating
        the merits and risks of our investment in the Notes, and we and any accounts
        for
        which we are acting are each able to bear the economic risk of our or its
        investment.

       

      5. We
        are
        acquiring the Notes or beneficial interest therein purchased by us for our
        own
        account or for one or more accounts (each of which is an institutional
“accredited investor”) as to each of which we exercise sole investment
        discretion.

       

      You
        and
        the Company are entitled to rely upon this letter and are irrevocably authorized
        to produce this letter or a copy to any interested party in any administrative
        or legal proceedings or official inquiry with respect to the matters covered
        hereby.

       

       

       

      [Insert
        Name of Transferor]

       

       

      By:   

       

       

      Name: 

       

       

      Title: 

       

      Dated:
        ___________________________Exhibit 4.02 Saxon Reg Rights Agreement

     

    EXHIBIT
      4.02

    

      REGISTRATION
        RIGHTS AGREEMENT

       

      This
        REGISTRATION RIGHTS AGREEMENT dated May 4, 2006 (this “Agreement”)
        is
        entered into by and among Saxon Capital, Inc., a Maryland corporation (the
        “Company”),
        the
        guarantors listed in Schedule I hereto (the “Guarantors”)
        and
        J.P. Morgan Securities Inc. (the “Initial
        Purchaser”).

       

      The
        Company, the Guarantors and the Initial Purchaser are parties to the Purchase
        Agreement dated April 26, 2006, as amended on May 3, 2006 (the “Purchase
        Agreement”),
        which
        provides for the sale by the Company to the Initial Purchaser of $150,000,000
        aggregate principal amount of the Company’s 12% Senior Notes due 2014 (the
“Notes”)
        which
        will be jointly and severally guaranteed (the “Guarantees”
and
        together with the Notes, the “Securities”)
        on an
        unsecured senior basis by each of the Guarantors (except
        that the Guarantee of each Servicing Guarantor (as defined in the Indenture)
        shall be subordinated as and to the extent provided in the Indenture.
As
        an
        inducement to the Initial Purchaser to enter into the Purchase Agreement,
        and in
        satisfaction of a condition to the obligations of the Initial Purchaser
        thereunder, the Company and the Guarantors have agreed to provide to the
        Initial
        Purchaser and its direct and indirect transferees the registration rights
        set
        forth in this Agreement. The execution and delivery of this Agreement is
        a
        condition to the closing under the Purchase Agreement.

       

      In
        consideration of the foregoing, the parties hereto agree as
        follows:

       

      1.  Definitions.
        As used
        in this Agreement, the following terms shall have the following respective
        meanings:

       

      “Business
        Day” shall mean any day that is not a Saturday, Sunday or other day on which
        commercial banks in New York City are authorized or required by law to remain
        closed.

       

      “Closing
        Date” shall mean the Closing Date as defined in the Purchase
        Agreement.

       

      “Company”
        shall have the meaning set forth in the preamble and shall also include the
        Company’s successors.

       

      “Exchange
        Act” shall mean the Securities Exchange Act of 1934, or any successor statute
        thereto, and the rules, regulations and forms of the SEC promulgated thereunder,
        all as the same shall be amended from time to time.

       

      “Exchange
        Date” shall have the meaning set forth in Section 2(a)(ii) hereof.

       

      “Exchange
        Offer” shall mean the exchange offer by the Company and the Guarantors of
        Exchange Securities for Registrable Securities pursuant to Section 2(a)
        hereof.

       

      “Exchange
        Offer Registration Default” shall have the meaning set forth in Section 2(d)
        hereof.

       

      “Exchange
        Offer Registration” shall mean a registration under the Securities Act effected
        pursuant to Section 2(a) hereof.

       

      “Exchange
        Offer Registration Statement” shall mean a registration statement on Form S-4
        (or, if applicable, on another appropriate form) relating to an offering
        of
        Exchange Securities pursuant to an Exchange Offer and all amendments and
        supplements to such registration statement, in each case including the
        Prospectus contained therein, all exhibits thereto and any document incorporated
        by reference therein.

       

      “Exchange
        Securities” shall mean senior notes issued by the Company and guaranteed by the
        Guarantors under the Indenture containing terms identical in all material
        respects to the Securities (except that the interest thereon shall accrue
        from
        the last date on which interest was paid on the Notes (or, if no such interest
        has been paid, from the date the Notes were first issued) and the Exchange
        Securities will not be subject to restrictions on transfer or contain terms
        with
        respect to the payment of Liquidated Damages) and to be offered to Holders
        of
        Securities in exchange for Securities pursuant to the Exchange
        Offer.

       

      “Guarantors”
        shall have the meaning set forth in the preamble and shall also include any
        Guarantor’s successors. 

       

      “Holders”
        shall mean the Initial Purchaser, for so long as it owns any Registrable
        Securities, and each of its successors, assigns and direct and indirect
        transferees who become owners of Registrable Securities under the Indenture;
        provided however
        that for
        purposes of Sections 4 and 5 of this Agreement, the term “Holders” shall include
        Participating Broker-Dealers.

       

      “Indemnified
        Person” shall have the meaning set forth in Section 5(c) hereof.

       

      “Indemnifying
        Person” shall have the meaning set forth in Section 5(c) hereof.

       

      “Indenture”
        shall mean the Indenture relating to the Securities and the Exchange Securities
        dated as of May 4, 2006 among the Company, the Guarantors and Deutsche Bank
        Trust Company Americas, as trustee, and as the same may be amended from time
        to
        time in accordance with the terms thereof.

       

      “Initial
        Purchaser” shall have the meaning set forth in the preamble.

       

      “Inspector”
        shall have the meaning set forth in Section 3(a)(xiii) hereof.

       

      “Liquidated
        Damages” shall have the meaning set forth in Section 2(d) hereof.

       

      “Majority
        Holders” shall mean the Holders of a majority of the aggregate principal amount
        of the outstanding Registrable Securities; provided however
        that
        whenever the consent or approval of Holders of a specified percentage of
        Registrable Securities is required hereunder, any Registrable Securities
        owned
        directly or indirectly by the Company or any of its affiliates shall not
        be
        considered outstanding and shall not be counted in determining whether such
        consent or approval was given by the Holders of such required percentage
        or
        amount; and provided,
        further, that if the Company shall issue any additional Securities under
        the
        Indenture prior to consummation of the Exchange Offer or, if applicable,
        the
        effectiveness of any Shelf Registration Statement, such additional Securities
        and the Registrable Securities to which this Agreement relates shall be treated
        together as one class for purposes of determining whether the consent or
        approval of Holders of a specified percentage of Registrable Securities has
        been
        obtained.

       

      “Participating
        Broker-Dealers” shall have the meaning set forth in Section 4(a)
        hereof.

       

      “Person”
        shall mean an individual, partnership, limited liability company, corporation,
        trust or unincorporated organization, or a government or agency or political
        subdivision thereof.

       

      “Prospectus”
        shall mean the prospectus included in a Registration Statement, including
        any
        preliminary prospectus, and any such prospectus as amended or supplemented
        by
        any prospectus supplement or “free-writing prospectus” (as defined in Rule 405
        under the Securities Act), including a prospectus supplement or free-writing
        prospectus with respect to the terms of the offering of any portion of the
        Registrable Securities covered by a Shelf Registration Statement, and by
        all
        other amendments and supplements to such prospectus, and in each case including
        any document incorporated by reference therein.

       

      “Purchase
        Agreement” shall have the meaning set forth in the preamble.

       

      “Registrable
        Securities” shall mean the Securities; provided however
        that
        the
        Securities shall cease to be Registrable Securities (i) when a Registration
        Statement with respect to such Securities has been declared effective under
        the
        Securities Act and such Securities have been exchanged or disposed of pursuant
        to such Registration Statement, (ii) when such Securities are eligible to
        be
        sold pursuant to Rule 144(k) (or any similar provision then in force, but
        not
        Rule 144A) under the Securities Act or (iii) when such Securities cease to
        be
        outstanding.

       

      “Registration
        Expenses” shall mean any and all expenses incident to performance of or
        compliance by the Company and
        the
        Guarantors
        with
        this Agreement, including without limitation: (i) all SEC, stock exchange
        or
        National Association of Securities Dealers, Inc. registration and filing
        fees,
        (ii) all fees and expenses incurred in connection with compliance with state
        securities or blue sky laws (including reasonable fees and disbursements
        of
        counsel for any Underwriters or Holders in connection with blue sky
        qualification of any Exchange Securities or Registrable Securities), (iii)
        all
        expenses of any Persons in preparing or assisting in printing and distributing
        any Registration Statement, any Prospectus and any amendments or supplements
        thereto, any underwriting agreements, securities sales agreements or other
        similar agreements and any other documents relating to the performance of
        and
        compliance with this Agreement, (iv) all rating agency fees, (v) all fees
        and
        disbursements relating to the qualification of the Indenture under applicable
        securities laws, (vi) the fees and disbursements of the Trustee and its counsel,
        (vii) the fees and disbursements of counsel for the Company and the Guarantors
        and, in the case of a Shelf Registration Statement, the reasonable fees and
        disbursements of one counsel for the Holders (which counsel shall be selected
        by
        the Majority Holders and which counsel may also be counsel for the Initial
        Purchaser) and (viii) the fees and disbursements of the independent public
        accountants of the Company and the Guarantors, including the expenses of
        any
        special audits or “comfort” letters required by this Agreement, but excluding
        fees and expenses of counsel to the Underwriters (other than fees and expenses
        set forth in clause (ii) above) or the Holders and underwriting discounts
        and
        commissions, brokerage commissions and transfer taxes, if any, relating to
        the
        sale or disposition of Registrable Securities by a Holder.

       

      “Registration
        Statement” shall mean any registration statement of the Company and the
        Guarantors that covers any of the Exchange Securities or Registrable Securities
        pursuant to the provisions of this Agreement and all amendments and supplements
        to any such registration statement, including post-effective amendments,
        in each
        case including the Prospectus contained therein, all exhibits thereto and
        any
        document incorporated by reference therein.

       

      “Restricted
        Holder” shall mean (i) a Holder that is an “affiliate”
(within
        the meaning of Rule 405 under the Securities Act) of the Company or any
        Guarantor, (ii) a Holder that acquires Exchange Securities outside the ordinary
        course of its business, (iii) a Holder who, at the time of the commencement
        of
        the Exchange Offer, has arrangements or understandings with any Person to
        participate in the distribution (within the meaning of the Securities Act)
        of
        the Exchange Securities in violation of the provisions of the Securities
        Act,
        (iv) a Holder that is a broker-dealer that will receive Exchange Securities
        for
        its own account in exchange for Registrable Securities that were acquired
        as a
        result of market-making or other trading activities unless such Holder has
        represented to the Company in writing (which may be contained in the applicable
        letter of transmittal) that it will comply with the applicable provisions
        of the
        Securities Act (including, but not limited to, the prospectus delivery
        requirements thereunder).

       

      “SEC”
        shall mean the United States Securities and Exchange Commission,
        or any
        other federal agency at the time administering the Securities Act.

       

      “Securities”
        shall have the meaning set forth in the Preamble.

       

      “Securities
        Act” shall mean the Securities Act of 1933, or any successor statute thereto,
        and the rules, regulations and forms of the SEC promulgated thereunder, all
        as
        the same shall be amended from time to time.

       

      “Shelf
        Effectiveness Period” shall have the meaning set forth in Section 2(b)
        hereof.

       

      “Shelf
        Registration” shall mean a registration effected pursuant to Section 2(b)
        hereof.

       

      “Shelf
        Registration Default” shall have the meaning set forth in Section 2(d)
        hereof.

       

      “Shelf
        Registration Statement” shall mean a “shelf” registration statement of the
        Company and the Guarantors that covers all or a portion of the Registrable
        Securities (but no other securities unless approved by the Holders of a majority
        of the aggregate principal amount of Registrable Securities that are to be
        covered by such Shelf Registration Statement) on an appropriate form under
        Rule
        415 under the Securities Act, or any similar rule that may be adopted by
        the
        SEC, and all amendments and supplements to such registration statement,
        including post-effective amendments, in each case including the Prospectus
        contained therein, all exhibits thereto and any document incorporated by
        reference therein.

       

      “Staff”
        shall mean the staff of the SEC.

       

      “Trust
        Indenture Act” shall mean the Trust Indenture Act of 1939, as amended from time
        to time.

       

      “Trustee”
        shall mean the trustee with respect to the Securities under the
        Indenture.

       

      “Underwriter”
        shall have the meaning set forth in Section 3(e) hereof.

       

      “Underwritten
        Offering” shall mean an offering in which Registrable Securities are sold to an
        Underwriter for reoffering to the public.

       

      2.  Registration
        Under the Securities Act.
        

       

      (a)  To
        the
        extent not prohibited by any applicable law or applicable interpretations
        of the
        Staff, the Company and the Guarantors shall use their commercially reasonable
        efforts to have the Exchange Offer completed on or prior to 270 calendar
        days
        after the Closing Date.

       

      The
        Company and the Guarantors shall commence the Exchange Offer after the Exchange
        Offer Registration Statement has been declared effective by mailing the related
        Prospectus, appropriate letters of transmittal and other accompanying documents
        to each Holder stating, in addition to such other disclosures as are required
        by
        applicable law, substantially the following:

       

      (i)  that
        the
        Exchange Offer is being made pursuant to this Agreement and that all Registrable
        Securities validly tendered and not properly withdrawn will be accepted for
        exchange;

       

      (ii)  the
        date
        of acceptance for exchange (which shall be a period of at least 20 Business
        Days
        from the date such notice is mailed) (the “Exchange
        Date”);

       

      (iii)  that
        any
        Registrable Security not tendered will remain outstanding and continue to
        accrue
        interest but will not retain any rights under this Agreement;

       

      (iv)  that
        any
        Holder electing to have a Registrable Security exchanged pursuant to the
        Exchange Offer will be required to surrender such Registrable Security, together
        with the appropriate letters of transmittal, to the institution and at the
        address (located in the Borough of Manhattan, The City of New York) and in
        the
        manner specified in the notice, prior to the close of business on the Exchange
        Date; provided however,
        that if
        any of the Registrable Securities are in book-entry form, such Prospectus
        and
        accompanying documents shall also specify how such surrender is to be effected
        in accordance with applicable book-entry procedures; and

       

      (v)  that
        any
        Holder will be entitled to withdraw its election, not later than the close
        of
        business on the Exchange Date, by sending to the institution and at the address
        (located in the Borough of Manhattan, The City of New York) specified in
        the
        notice, a telegram, telex, facsimile transmission or letter setting forth
        the
        name of such Holder, the principal amount of Registrable Securities delivered
        for exchange and a statement that such Holder is withdrawing its election
        to
        have such Securities exchanged.

       

      As
        a
        condition to participating in the Exchange Offer, a Holder will be required
        to
        represent to the Company and the Guarantors that it is not a Restricted Holder.
        

       

      As
        soon
        as reasonably practicable after the Exchange Date, the Company and the
        Guarantors shall:

       

      (i)  accept
        for exchange Registrable Securities or portions thereof validly tendered
        and not
        properly withdrawn pursuant to the Exchange Offer; and

       

      (ii)  deliver,
        or cause to be delivered, to the Trustee for cancellation all Registrable
        Securities or portions thereof so accepted for exchange by the Company and
        issue, and cause the Trustee to promptly authenticate and deliver to each
        Holder, Exchange Securities equal in aggregate principal amount to the aggregate
        principal amount of the Registrable Securities surrendered by such
        Holder.

       

      The
        Company and the Guarantors shall use their commercially reasonable efforts
        to
        complete the Exchange Offer as provided above and shall comply with the
        applicable requirements of the Securities Act, the Exchange Act and other
        applicable laws and regulations in connection with the Exchange Offer. The
        Exchange Offer shall not be subject to any conditions not contemplated hereby,
        other than that the Exchange Offer does not violate any applicable law or
        applicable interpretation of the Staff.

       

      If,
        during the period the Exchange Offer Registration Statement is effective,
        an
        event occurs which makes any statement made in such Exchange Offer Registration
        Statement or the related Prospectus untrue in any material respect or which
        requires the making of any changes in such Exchange Offer Registration Statement
        in order to make the statements therein not misleading or in such Prospectus
        in
        order to make the statements therein, in the light of the circumstances under
        which they were made, not misleading, the Company and the Guarantors shall
        use
        their commercially reasonable efforts to prepare and file with the SEC a
        supplement or post-effective amendment to the Exchange Offer Registration
        Statement or the related Prospectus or any document incorporated therein
        by
        reference or file any other required document so that, as thereafter delivered
        to the purchasers of the Registrable Securities, such Prospectus will not
        contain any untrue statement of a material fact or omit to state a material
        fact
        necessary to make the statements therein, in the light of the circumstances
        under which they were made, not misleading. The Company agrees to notify
        the
        Holders to suspend the exchange of the Registrable Securities as promptly
        as
        reasonably practicable after the occurrence of such an event, and the Holders
        hereby agree to suspend such exchange until the Company and the Guarantors
        have
        amended or supplemented the Prospectus to correct such misstatement or
        omission.

       

      The
        Exchange Offer will be deemed to have been “completed” only if the Exchange
        Securities received by Holders, other than Restricted Holders, in the Exchange
        Offer in exchange for Registrable Securities are, upon receipt, transferable
        by
        each such Holder without restriction under the Securities Act and the Exchange
        Act and without material restrictions under the blue sky or securities laws
        of a
        substantial majority of the states of the United States of America (including
        any state specified pursuant to Section 3(a)(iv)). The Exchange Offer shall
        be
        deemed to have been completed when the Company has exchanged the Exchange
        Securities for all outstanding Registrable Securities properly tendered and
        not
        withdrawn before the expiration of the Exchange Offer pursuant to the Exchange
        Offer.

       

      (b)  In
        the
        event that (i) the Company and the Guarantors determine that the Exchange
        Offer
        Registration provided
        for in Section 2(a) above is not available or may not be completed as soon
        as
        reasonably practicable after the Exchange Date because it would violate any
        applicable law or applicable interpretation of the Staff, (ii) the Exchange
        Offer is not for any reason completed on or prior to the 270th calendar day
        after the Closing Date, or (iii) the Initial Purchaser, based
        upon the reasonable advice of counsel for the Initial Purchaser that it is
        not
        permitted to exchange Registrable Securities held by it for Exchange Securities,
        shall so request a
        Shelf
        Registration Statement providing for the sale of all the Registrable Securities
        by the Holders thereof, use their commercially reasonable efforts to have
        such
        Shelf Registration Statement declared effective by the SEC as soon as reasonably
        practicable after such filing obligation arises and use their commercially
        reasonable efforts to keep effective the Shelf Registration Statement until
        two
        years after the Closing Date (or such shorter period that will terminate
        when
        all of the Registrable Securities covered thereby have been exchanged or
        sold
        pursuant thereto or in certain other circumstances). 

       

      In
        the
        event that the Company and the Guarantors are required to file a Shelf
        Registration Statement pursuant to clause (iii) of the preceding sentence,
        the
        Company and the Guarantors shall file and use their commercially reasonable
        efforts to have declared effective by the SEC both an Exchange Offer
        Registration Statement pursuant to Section 2(a) with respect to all Registrable
        Securities and a Shelf Registration Statement (which may be a combined
        Registration Statement with the Exchange Offer Registration Statement) with
        respect to offers and sales of Registrable Securities held by the Initial
        Purchaser after completion of the Exchange Offer.

       

      The
        Company and the Guarantors agree to use their commercially reasonable efforts
        to
        keep the Shelf Registration Statement continuously effective until the
        expiration of the period referred to in Rule 144(k) (or any similar rule
        then in
        force, but not Rule 144A) under the Securities Act with respect to the
        Registrable Securities or such shorter period that will terminate when all
        the
        Registrable Securities covered by the Shelf Registration Statement have been
        sold pursuant to the Shelf Registration Statement or are no longer outstanding
        (the “Shelf
        Effectiveness Period”).
        The
        Company and the Guarantors further agree to supplement or amend the Shelf
        Registration Statement and the related Prospectus if required by the rules,
        regulations or instructions applicable to the registration form used by the
        Company for such Shelf Registration Statement or by the Securities Act or
        by any
        other rules and regulations thereunder for shelf registration or if reasonably
        requested by a Holder to correct information relating to such Holder, and
        to use
        their commercially reasonable efforts to cause any such amendment to become
        effective and such Shelf Registration Statement and Prospectus to become
        usable
        as soon as thereafter practicable. The Company and the Guarantors agree to
        furnish to the Holders of Registrable Securities copies of any such supplement
        or amendment promptly after its being used or filed with the SEC.

       

      (c)  The
        Company and the Guarantors shall pay promptly all Registration Expenses in
        connection with any registration pursuant to Section 2(a) or Section 2(b)
        hereof. Each Holder shall pay all underwriting discounts and commissions,
        brokerage commissions and transfer taxes, if any, relating to the sale or
        disposition of such Holder’s Registrable Securities pursuant to the Shelf
        Registration Statement.

       

      (d)  An
        Exchange Offer Registration Statement pursuant to Section 2(a) hereof or
        a Shelf
        Registration Statement pursuant to Section 2(b) hereof will not be deemed
        to
        have become effective unless it has been declared effective by the SEC (unless
        such Registration Statement, under applicable SEC rules, becomes immediately
        effective upon filing thereof).

       

      The
        Company, each Guarantor and the Initial Purchaser agree that the Holders
        will
        suffer damages if the Company or the Guarantors fail to fulfill their respective
        obligations under Section 2(a) or Section 2(b) hereof and that it would not
        be
        feasible to ascertain the extent of such damages with precision. Accordingly,
        the Company and each Guarantor agree that in the event that:

       

      (i) the
        Exchange Offer is not completed on or prior to 270 calendar days after the
        Closing Date (an “Exchange
        Offer Registration Default”);
        or

       

      (ii) (A)
        a
        Shelf Registration Statement is not filed with the SEC or declared effective
        when required pursuant to Section 2(b) or (B) a Registration Statement is
        declared effective as required pursuant to Section 2 but thereafter fails
        to
        remain effective or usable in connection with resales for more than 60
        consecutive calendar days (a “Shelf
        Registration Default”);

       

      then
        the
        Company and the Guarantors hereby agree to pay each Holder of Registrable
        Securities affected thereby, liquidated damages (“Liquidated
        Damages”).
        Liquidated Damages will accrue daily on the affected Registrable Securities.
        The
        rate of Liquidated Damages will be 0.25% per annum of the principal amount
        of
        Registrable Securities held by such Holder for the first 90-day period
        immediately following the occurrence of an Exchange Offer Registration Default
        or Shelf Registration Default, as applicable, increasing by 0.25% per annum
        with
        respect to each subsequent 90-day period, up to a maximum of 1.00% per annum,
        in
        each case until (x) with respect to a Registration Default, the Exchange
        Offer
        is completed or the Shelf Registration Statement, if required hereby, is
        declared effective by the SEC or the Securities become freely tradeable under
        the Securities Act (which shall include, without limitation, an effective
        Shelf
        Registration Statement relating to the Registrable Securities) or (y) with
        respect to a Shelf Registration Default, the Shelf Registration Statement
        has
        again been declared effective or the Prospectus again becomes usable. All
        accrued Liquidated Damages shall be paid in cash by the Company on each Interest
        Payment Date (as defined in the Indenture). 

       

      Notwithstanding
        the foregoing, (1) the amount of Liquidated Damages payable shall not increase
        because more than one Exchange Offer Registration Default has occurred and
        is
        pending and (2) a Holder of Registrable Securities or Exchange Securities
        who is
        not entitled to the benefits of the Shelf Registration Statement (i.e., such
        Holder has not elected to furnish information to the Company in accordance
        with
        Section 3(b) hereof) shall not be entitled to Liquidated Damages with
        respect to a Shelf Registration Default.

       

      Anything
        herein to the contrary notwithstanding, no Holder who (x) was eligible to
        exchange such Holder’s outstanding Securities at the time that the Exchange
        Offer was pending and consummated and (y) failed to validly tender such
        Securities for exchange pursuant to the Exchange Offer shall be entitled
        to
        receive any Liquidated Damages that would otherwise accrue subsequent to
        the
        Exchange Date.

       

      (e)  The
        Company shall notify the Trustee within 15 days after each date on which
        an
        event occurs in respect of which Liquidated Damages are required to be paid.
        Any
        amounts of Liquidated Damages due pursuant to this Section 2 will be payable
        to
        Holders entitled thereto in addition to any other interest payable from time
        to
        time with respect to the Registrable Securities in cash semi-annually on
        the
        interest payment dates specified in the Indenture (to the holders of record
        as
        specified in the Indenture), commencing with the first such interest payment
        date occurring after any such Liquidated Damages commence to accrue. The
        amount
        of Liquidated Damages will be determined in a manner consistent with the
        calculation of interest under the Indenture.

       

      (f)  Without
        limiting the remedies available to the Initial Purchaser and the Holders,
        the
        Company and the Guarantors acknowledge that any failure by the Company or
        the
        Guarantors to comply with their obligations under Section 2(a) and Section 2(b)
        hereof may result in material irreparable injury to the Initial Purchaser
        or the
        Holders for which there is no adequate remedy at law, that it will not be
        possible to measure damages for such injuries precisely and that, in the
        event
        of any such failure, the Initial Purchaser or any Holder may obtain such
        relief
        as may be required to specifically enforce the Company’s and the Guarantors’
obligations under Section 2(a) and Section 2(b) hereof.

       

      3.  Registration
        Procedures.
        

       

      (a)  In
        connection with their obligations pursuant to Section 2(a) and Section 2(b)
        hereof, the Company and the Guarantors shall:

       

      (i)  prepare
        and file with the SEC a Registration Statement on the appropriate form under
        the
        Securities Act, which form (x) shall be selected by the Company and the
        Guarantors, (y) shall, in the case of a Shelf Registration, be available
        for the
        sale of the Registrable Securities by the selling Holders thereof and (z)
        shall
        comply as to form in all material respects with the requirements of the
        applicable form and include all financial statements required by the SEC
        to be
        filed therewith; and use their commercially reasonable efforts to cause such
        Registration Statement to become effective and remain effective for the
        applicable period in accordance with Section 2 hereof;

       

      (ii)  prepare
        and file with the SEC such amendments and post-effective amendments to each
        Registration Statement as may be necessary to keep such Registration Statement
        effective for the applicable period in accordance with Section 2 hereof and
        cause each Prospectus to be supplemented by any required prospectus supplement
        and, as so supplemented, to be filed pursuant to Rule 424 under the Securities
        Act; and to the extent required, keep each Prospectus current during the
        period
        described in Section 4(3) of and Rule 174 under the Securities Act that is
        applicable to transactions by brokers or dealers with respect to the Registrable
        Securities or Exchange Securities;

       

      (iii)  in
        the
        case of a Shelf Registration, furnish to each Holder of Registrable Securities,
        to the Initial Purchaser, to counsel for such Holders (if any had been
        identified by written notice to the Company) and to each Underwriter of an
        Underwritten Offering of Registrable Securities, if any, without charge,
        as many
        copies of each Prospectus, including each preliminary Prospectus, and any
        amendment or supplement thereto, as such Holder or Underwriter may reasonably
        request, in order to facilitate the sale or other disposition of the Registrable
        Securities thereunder; and, subject to Section 3(a)(ix), the Company and
        the
        Guarantors consent to the use of such Prospectus and any amendment or supplement
        thereto in accordance with applicable law and this Agreement by each of the
        selling Holders of Registrable Securities and any such Underwriters in
        connection with the offering and sale of the Registrable Securities covered
        by
        and in the manner described in such Prospectus or any amendment or supplement
        thereto in accordance with applicable law and this Agreement;

       

      (iv)  use
        their
        commercially reasonable efforts to register or qualify the Registrable
        Securities under all applicable state securities or blue sky laws of such
        jurisdictions as any Holder of Registrable Securities covered by a Registration
        Statement shall reasonably request in writing by the time the applicable
        Registration Statement is declared effective by the SEC; cooperate with such
        Holders in connection with any filings required to be made with the National
        Association of Securities Dealers, Inc.; and do any and all other acts and
        things that may be reasonably necessary or advisable to enable each Holder
        to
        complete the disposition in each such jurisdiction of the Registrable Securities
        owned by such Holder; provided however
        that
        neither the Company nor any Guarantor shall be required to (1) qualify as
        a
        foreign corporation or other entity or as a dealer in securities in any such
        jurisdiction where it would not otherwise be required to so qualify, but
        for
        this Section 3(iv), (2) file any general consent to service of process in
        any
        such jurisdiction or (3) subject itself to taxation in any such jurisdiction
        if
        it is not so subject;

       

      (v)  in
        the
        case of a Shelf Registration, notify each Holder of Registrable Securities,
        and
        the Initial Purchaser promptly and, if requested by any such Holder or the
        Initial Purchaser, confirm such advice in writing (1) when a Registration
        Statement has become effective and when any post-effective amendment thereto
        has
        been filed and becomes effective, (2) of any request by the SEC or any state
        securities authority for amendments and supplements to a Registration Statement
        and Prospectus or for additional information after the Registration Statement
        has become effective, (3) of the issuance by the SEC or any state securities
        authority of any stop order suspending the effectiveness of a Registration
        Statement or the initiation of any proceedings for that purpose, (4) if,
        between
        the effective date of a Registration Statement and the closing of any sale
        of
        Registrable Securities covered thereby, the representations and warranties
        of
        the Company or any Guarantor contained in any underwriting agreement, securities
        sales agreement or other similar agreement, if any, relating to an offering
        of
        such Registrable Securities cease to be true and correct in all material
        respects or if the Company or any Guarantor receives any notification with
        respect to the suspension of the qualification of the Registrable Securities
        for
        sale in any jurisdiction or the initiation of any proceeding for such purpose,
        (5) of the happening of any event during the period a Shelf Registration
        Statement is effective that makes any statement made in such Registration
        Statement or the related Prospectus untrue in any material respect or that
        requires the making of any changes in such Registration Statement in order
        to
        make the statements therein not misleading or in such Prospectus in order
        to
        make the statements therein, in the light of the circumstances under which
        they
        were made, not misleading and (6) of any determination by the Company or
        any
        Guarantor that a post-effective amendment to a Registration Statement would
        be
        appropriate. Notwithstanding
        the foregoing, upon advising each Holder of Registrable Securities, and the
        Initial Purchaser, and, if required by any such person, upon confirming such
        advice in writing (which advice pursuant to this clause shall be accompanied
        by
        an instruction to suspend the use of the Prospectus), the Company may suspend
        the use of any Prospectus included in any Registration Statement in the event
        that and for periods not to exceed 60 consecutive days and no more than two
        times in any calendar year if (1) an event or circumstance occurs and is
        continuing as a result of which the Shelf Registration Statement, any related
        Prospectus or any document incorporated therein by reference as then amended
        or
        supplemented or proposed to be filed would, in the good faith judgment of
        the
        Company’s board of directors, contain an untrue statement of a material fact or
        omit to state a material fact necessary in order to make the statement therein,
        in light of the circumstances used under which they were made, not misleading,
        and (2)(a) the Company’s board of directors determines, in its good faith
        judgment, that the disclosure would constitute material and non-public
        information, is not otherwise required to be filed or furnished with the
        SEC and
        would have a material adverse effect on its business, operations or prospects
        or
        (b) the Company’s board of directors otherwise determines in its good faith
        judgment, that the disclosure would constitute material and non-public
        information, is not otherwise required to be filed with the SEC and would
        related to a material business transaction or development that has not yet
        been
        publicly disclosed.

       

      (vi)  use
        their
        commercially reasonable efforts to obtain the withdrawal of any order suspending
        the effectiveness of a Registration Statement at the earliest possible moment
        and provide immediate notice to each Holder of the withdrawal of any such
        order;

       

      (vii)  in
        the
        case of a Shelf Registration, furnish to each Holder of Registrable Securities,
        without charge, at least one conformed copy of each Registration Statement
        and
        any post-effective amendment thereto (without any documents incorporated
        therein
        by reference or exhibits thereto, unless requested);

       

      (viii)  in
        the
        case of a Shelf Registration, cooperate with the selling Holders of Registrable
        Securities to facilitate the timely preparation and delivery of certificates
        representing Registrable Securities to be sold and not bearing any restrictive
        legends and enable such Registrable Securities to be issued in such
        denominations and registered in such names (consistent with the provisions
        of
        the Indenture) as such selling Holders may reasonably request at least one
        Business Day prior to the closing of any sale of Registrable
        Securities;

       

      (ix)  in
        the
        case of a Shelf Registration, upon the occurrence of any event contemplated
        by
        Section 3(a)(v)(5) hereof, use their commercially reasonable efforts to prepare
        and file with the SEC as promptly as reasonably practicable a supplement
        or
        post-effective amendment to such Shelf Registration Statement or the related
        Prospectus or any document incorporated therein by reference or file any
        other
        required document so that, as thereafter delivered to purchasers of the
        Registrable Securities, such Prospectus will not contain any untrue statement
        of
        a material fact or omit to state a material fact necessary to make the
        statements therein, in the light of the circumstances under which they were
        made, not misleading; and the Company and
        the
        Guarantors
        shall
        notify the Holders of Registrable Securities to suspend use of the Prospectus
        as
        promptly as reasonably practicable after the occurrence of such an event,
        and
        such Holders hereby agree to suspend use of the Prospectus until the Company
        and
        the Guarantors have amended or supplemented the Prospectus to correct such
        misstatement or omission or until the Company notifies the Holders that the
        sale
        of the Registrable Securities may be resumed;

       

      (x)  a
        reasonable time prior to the filing of any Registration Statement, any
        Prospectus, any amendment to a Registration Statement or amendment or supplement
        to a Prospectus or of any document that is to be incorporated by reference
        into
        a Registration Statement or a Prospectus after initial filing of a Registration
        Statement, provide copies of such document to the Initial Purchaser (and,
        in the
        case of a Shelf Registration Statement, to the Holders of Registrable Securities
        and one counsel to be chosen by the Majority Holders) and make such of the
        representatives of the Company and the Guarantors as shall be reasonably
        requested by the Initial Purchaser (and, in the case of a Shelf Registration
        Statement, the Holders of Registrable Securities or their chosen counsel
        as
        provided above in this Section 3(x)) available for discussion of such document;
        and the Company and the Guarantors shall not, at any time after initial filing
        of a Registration Statement, file any Prospectus, any amendment of or supplement
        to a Registration Statement or a Prospectus, or any document that is to be
        incorporated by reference into a Registration Statement or a Prospectus,
        of
        which the Initial Purchaser (and, in the case of a Shelf Registration Statement,
        the Holders of Registrable Securities and their chosen counsel as provided
        above
        in this Section 3(x)) shall not have previously been advised and furnished
        a
        copy or to which the Initial Purchaser (and, in the case of a Shelf Registration
        Statement, the Holders of Registrable Securities or their chosen counsel
        as
        provided above in this Section 3(x)) shall object within a reasonable time
        of
        receipt;

       

      (xi)  obtain
        a
        CUSIP number for all Exchange Securities or Registrable Securities, as the
        case
        may be, not later than the effective date of a Registration
        Statement;

       

      (xii)  cause
        the
        Indenture to be qualified under the Trust Indenture Act in connection with
        the
        registration of the Exchange Securities or Registrable Securities, as the
        case
        may be; cooperate with the Trustee and the Holders to effect such changes
        to the
        Indenture as may be required for the Indenture to be so qualified in accordance
        with the terms of the Trust Indenture Act; and execute, and use their
        commercially reasonable efforts to cause the Trustee to execute, all documents
        as may be required to effect such changes and all other forms and documents
        required to be filed with the SEC to enable the Indenture to be so qualified
        in
        a timely manner;

       

      (xiii)  in
        the
        case of a Shelf Registration (including an Underwritten Offering thereunder),
        make available for inspection by a representative of the Holders of the
        Registrable Securities (an “Inspector”),
        any
        Underwriter participating in any Underwritten Offering pursuant to such Shelf
        Registration Statement, any attorneys and accountants designated by the Holders
        of Registrable Securities and any attorneys and accountants designated by
        such
        Underwriter, at reasonable times and in a reasonable manner, all pertinent
        financial and other records, documents and properties of the Company and
        the
        Guarantors, and cause the respective officers, directors and employees of
        the
        Company and the Guarantors to supply all information reasonably requested
        by any
        such Inspector, Underwriter, attorney or accountant in connection with a
        Shelf
        Registration Statement, in each case that would customarily be reviewed or
        examined in connection with “due diligence” review of the Company and the
        Guarantors; provided
        that the
        foregoing inspection and information gathering (1) shall be coordinated on
        behalf of the selling Holders, Underwriters and representatives thereof by
        one
        counsel, who shall be such counsel as may be chosen by the Majority Holders
        or
        by the Underwriters, as the case may be, and (2) if any such information
        is
        identified by the Company or any Guarantor as being confidential or proprietary,
        shall not be available for any such Holder or Underwriter who does not agree
        in
        writing pursuant to a customary non-disclosure agreement to hold such
        information in confidence;

       

      (xiv)  in
        the
        case of a Shelf Registration, use their commercially reasonable efforts to
        cause
        all Registrable Securities to be listed on any securities exchange or any
        automated quotation system on which similar securities issued or guaranteed
        by
        the Company or any Guarantor are then listed if requested by the Majority
        Holders, to the extent such Registrable Securities satisfy applicable listing
        requirements;

       

      (xv)  if
        reasonably requested by any Holder of Registrable Securities covered by a
        Shelf
        Registration Statement, promptly include in a Prospectus supplement or
        post-effective amendment such information with respect to such Holder as
        such
        Holder reasonably requests to be included therein and make all required filings
        of such Prospectus supplement or such post-effective amendment as soon as
        reasonably practicable after the Company has received notification of the
        matters to be so included in such filing; and

       

      (xvi)  in
        the
        case of a Shelf Registration, enter into such customary agreements and take
        all
        such other reasonable actions in connection therewith (including those requested
        by the Majority Holders of the Registrable Securities being sold) in order
        to
        expedite or facilitate the disposition of such Registrable Securities including,
        but not limited to, an Underwritten Offering and in such connection, (1)
        to the
        extent possible, make such representations and warranties to the Holders
        and any
        Underwriters of such Registrable Securities with respect to the business
        of the
        Company and its subsidiaries and the Registration Statement, Prospectus and
        documents incorporated by reference or deemed incorporated by reference,
        if any,
        in each case, in form, substance and scope as are customarily made by issuers
        to
        underwriters in underwritten offerings and confirm the same if and when
        received, (2) obtain opinions of counsel to the Company and the Guarantors
        (which counsel and opinions, in form, scope and substance, shall be reasonably
        satisfactory to a representative of the Majority Holders and such Underwriters
        and their respective counsel) addressed to each selling Holder and Underwriter
        of Registrable Securities, covering the matters customarily covered in opinions
        requested in underwritten offerings of the type contemplated by this provision,
        (3) obtain “comfort” letters from the independent certified public accountants
        of the Company and the Guarantors (and, if necessary, any other certified
        public
        accountant of any subsidiary of the Company or any Guarantor, or of any business
        acquired by the Company or any Guarantor for which financial statements and
        financial data are or are required to be included in the Registration Statement)
        addressed to each selling Holder and Underwriter of Registrable Securities
        (subject, in each case, to the policies and procedures of the independent
        certified public accountants of the Company and the Guarantors and such other
        independent certified public accountants regarding the preparation and delivery
        of such letters), such letters to be in customary form and covering matters
        of
        the type customarily covered in “comfort” letters in connection with
        underwritten offerings of the type contemplated by this provision and (4)
        deliver such documents and certificates as may be reasonably requested by
        the
        Majority Holders or the Underwriters, and which are customarily delivered
        in
        underwritten offerings of the type contemplated by this provision, to evidence
        the continued validity of the representations and warranties of the Company
        and
        the Guarantors made pursuant to clause (1) above and to evidence compliance
        with
        any customary conditions contained in an underwriting agreement.

       

      (b)  In
        the
        case of a Shelf Registration Statement, the Company and the Guarantors may
        require each Holder of Registrable Securities to furnish to the Company such
        information regarding such Holder and the proposed disposition by such Holder
        of
        such Registrable Securities as the Company and the Guarantors may from time
        to
        time reasonably request in writing. So long as any Holder fails to furnish
        such
        information in a reasonably timely manner after receiving the request, the
        Company and the Guarantors shall (i) have no obligation under this Agreement
        to
        provide for the disposition of such Holder’s Registrable Securities in the Shelf
        Registration Statement in respect to which such information was requested,
        (ii)
        not be required to provide for the disposition of such Holder’s Registrable
        Securities in any post-effective amendment to such Shelf Registration Statement
        or any future Shelf Registration Statement that is not otherwise required
        to be
        filed and (iii) not be required to pay any Liquidated Damages to such Holder
        as
        provided in Section 2(d) hereof. Each Holder including Registrable Securities
        in
        a Shelf Registration Statement shall agree to furnish promptly to the Company
        all information regarding such Holder and the proposed distribution by such
        Holder of such Registrable Securities required to make the information
        previously furnished to the Company by such Holder not materially
        misleading.

       

      (c)  In
        the
        case of a Shelf Registration Statement, each Holder of Registrable Securities
        agrees that, upon receipt of any notice from the Company or any Guarantor
        of the
        happening of any event of the kind described in Section 3(a)(v)(3), (4) or
        (5)
        hereof, such Holder will forthwith discontinue disposition of Registrable
        Securities pursuant to the Shelf Registration Statement until such Holder’s
        receipt of the copies of the supplemented or amended Prospectus contemplated
        by
        Section 3(a)(ix) hereof and, if so directed by the Company or any Guarantor,
        such Holder will deliver to the Company and the Guarantors all copies in
        its
        possession, other than permanent file copies then in such Holder’s possession,
        of the Prospectus covering such Registrable Securities that is current at
        the
        time of receipt of such notice.

       

      (d)  If
        the
        Company or any Guarantor shall give any notice pursuant to Section 3(c) hereof
        to suspend the disposition of Registrable Securities pursuant to a Shelf
        Registration Statement, the Company and the Guarantors shall extend the period
        during which such Shelf Registration Statement shall be maintained effective
        pursuant to this Agreement by the number of days during the period from and
        including the date of the giving of such notice to and including the date
        when
        the Holders of such Registrable Securities shall have received copies of
        the
        supplemented or amended Prospectus necessary to resume such dispositions.
        

       

      (e)  The
        Holders of Registrable Securities covered by a Shelf Registration Statement
        who
        desire to do so may sell such Registrable Securities in an Underwritten
        Offering. In any such Underwritten Offering, the investment bank or investment
        banks and manager or managers (each an “Underwriter”)
        that
        will administer the offering will be selected by the Holders of a majority
        in
        principal amount of the Registrable Securities included in such
        offering.

       

      4.  Participation
        of Broker-Dealers in Exchange Offer.
        

       

      (a) The
        Staff
        has taken the position that any broker-dealer that receives Exchange Securities
        for its own account in the Exchange Offer in exchange for Securities that
        were
        acquired by such broker-dealer as a result of market-making or other trading
        activities (a “Participating
        Broker-Dealer”)
        may be
        deemed to be an “underwriter” within the meaning of the Securities Act and must
        deliver a prospectus meeting the requirements of the Securities Act in
        connection with any resale of such Exchange Securities.

       

      The
        Company and the Guarantors understand that it is the Staff’s position that if
        the Prospectus contained in the Exchange Offer Registration Statement includes
        a
        plan of distribution containing a statement to the above effect and the means
        by
        which Participating Broker-Dealers may resell the Exchange Securities, without
        naming the Participating Broker-Dealers or specifying the amount of Exchange
        Securities owned by them, such Prospectus may be delivered by Participating
        Broker-Dealers to satisfy their prospectus delivery obligation under the
        Securities Act in connection with resales of Exchange Securities for their
        own
        accounts, so long as the Prospectus otherwise meets the requirements of the
        Securities Act.

       

      (b)  In
        light
        of the above, and notwithstanding the other provisions of this Agreement,
        the
        Company and the Guarantors agree to amend or supplement the Prospectus contained
        in the Exchange Offer Registration Statement until 90 days after the effective
        date of the Exchange Offer Registration Statement (as such period may be
        extended pursuant to Section 3(d) of this Agreement), if requested by one
        or
        more Participating Broker-Dealers, in order to expedite or facilitate the
        disposition of any Exchange Securities by Participating Broker-Dealers
        consistent with the positions of the Staff recited in Section 4(a) above.
        The
        Company and the Guarantors further agree that Participating Broker-Dealers
        shall
        be authorized to deliver such Prospectus during such period in connection
        with
        the resales contemplated by this Section 4 in accordance with applicable
        law and
        this Agreement.

       

      (c)  The
        Initial Purchaser shall have no liability to the Company, any Guarantor or
        any
        Holder with respect to any request that they may make pursuant to Section
        4(b)
        above.

       

      5.  Indemnification
        and Contribution.
        

       

      (a) The
        Company and each of the Guarantors jointly and severally agree to indemnify
        and
        hold harmless Initial Purchaser and each Holder, their respective affiliates,
        directors and officers and each Person, if any, who controls the Initial
        Purchaser or any Holder within the meaning of Section 15 of the Securities
        Act
        or Section 20 of the Exchange Act, from and against any and all losses, claims,
        damages and liabilities (including, without limitation, reasonable legal
        fees
        and other expenses incurred in connection with any suit, action or proceeding
        or
        any claim asserted, as such fees and expenses are incurred), joint or several,
        that arise out of, or are based upon, (i) any untrue statement or alleged
        untrue statement of a material fact contained in any Registration Statement
        or
        any omission or alleged omission to state therein a material fact required
        to be
        stated therein or necessary in order to make the statements therein not
        misleading or (ii) any untrue statement or alleged untrue statement of a
        material fact contained in any Prospectus or any omission or alleged omission
        to
        state therein a material fact required to be stated therein or necessary
        in
        order to make the statements therein, in the light of the circumstances under
        which they were made, not misleading, in each case except insofar as such
        losses, claims, damages or liabilities arise out of, or are based upon, any
        untrue statement or omission or alleged untrue statement or omission made
        in
        reliance upon and in conformity with any information relating to the Initial
        Purchaser, or information relating to any Holder furnished to the Company
        in
        writing through the Initial Purchaser or any selling Holder expressly for
        use
        therein; provided,
        however,
        that
        the foregoing indemnity agreement with respect to any Prospectus, shall not
        inure to the benefit of the Initial Purchaser, its affiliates, directors
        or
        officers or any Holder (or any person, if any, who controls such Initial
        Purchaser or Holder within the meaning of Section 15 of the Securities Act
        or
        Section 20 of the Exchange Act), from whom the person asserting any such
        losses,
        claims, damages or liabilities purchased Exchange Securities or Securities
        where
        it shall have been determined by a court of competent jurisdiction by final
        and
        nonappealable judgment that (i) prior to the time of sale, the Company had
        notified the Initial Purchaser or Holder, as the case may be, that the
        Prospectus delivered to such person contains an untrue statement of material
        fact or omits to state therein a material fact required to be stated therein
        in
        order to make the statements therein not misleading, (ii) such untrue statement
        or omission of fact was corrected in an amended or supplemented Prospectus
        that
        was provided to the Initial Purchaser or Holder, as the case may be, far
        enough
        in advance of the time of sale so that such corrected Prospectus could have
        been
        provided to the person asserting such loss, claim, damage or liability prior
        to
        the time of sale, (iii) the Initial Purchaser or Holder, as the case may
        be, did
        not send or give such corrected Prospectus to such person at or prior to
        the
        time of sale and (iv) such loss, claim, damages or liabilities would not
        have
        occurred had the Initial Purchaser or Holder, as the case may be, delivered
        the
        corrected Prospectus to such Person. In connection with any Underwritten
        Offering permitted by Section 3, the Company and the Guarantors will also
        enter
        into an underwriting agreement pursuant to which the Company and the Guarantors
        will agree to jointly and severally indemnify the Underwriters, if any, selling
        brokers, dealers and similar securities industry professionals participating
        in
        such Underwritten Offering, their respective affiliates and each Person who
        controls such Persons (within the meaning of the Securities Act and the Exchange
        Act) to the same extent as provided above with respect to the indemnification
        of
        the Holders, if requested in connection with any Registration Statement for
        such
        Underwritten Offering.

       

      (b)  Each
        Holder agrees, severally and not jointly, to indemnify and hold harmless
        the
        Company, the Guarantors, the Initial Purchaser and the other selling Holders,
        the directors of the Company and the Guarantors, each officer of the Company
        and
        the Guarantors who signed the Registration Statement and each Person, if
        any,
        who controls the Company, the Guarantors, the Initial Purchaser and any other
        selling Holder within the meaning of Section 15 of the Securities Act or
        Section
        20 of the Exchange Act to the same extent as the indemnity set forth in
        paragraph (a) above, but only with respect to any losses, claims, damages
        or
        liabilities that arise out of, or are based upon, any untrue statement or
        omission or alleged untrue statement or omission made in reliance upon and
        in
        conformity with any information relating to such Holder furnished to the
        Company
        in writing by such Holder expressly for use in any Registration Statement
        and
        any Prospectus.

       

      (c)  If
        any
        suit, action, proceeding (including any governmental or regulatory
        investigation), claim or demand shall be brought or asserted against any
        Person
        in respect of which indemnification may be sought pursuant to either paragraph
        (a) or (b) above, such Person (the “Indemnified
        Person”)
        shall
        promptly notify the Person against whom such indemnification may be sought
        (the
“Indemnifying
        Person”)
        in
        writing; provided however
        that
        the
        failure to notify the Indemnifying Person shall not relieve it from any
        liability that it may have under this Section 5 except to the extent that
        it has
        been materially prejudiced (through the forfeiture of substantive rights
        or
        defenses) by such failure; and provided,
        further,
        that
        the failure to notify the Indemnifying Person shall not relieve it from any
        liability that it may have to an Indemnified Person otherwise than under
        this
        Section 5. If any such proceeding shall be brought or asserted against an
        Indemnified Person and it shall have notified the Indemnifying Person thereof,
        the Indemnifying Person
        shall
        retain counsel reasonably satisfactory to the Indemnified Person (who shall
        not,
        without the consent of the Indemnified Person, be counsel to the Indemnifying
        Person) to represent the Indemnified Person and any others entitled to
        indemnification pursuant to this Section 5 that the Indemnifying Person may
        designate in such proceeding and shall pay the fees and expenses of such
        counsel
        related to such proceeding, as incurred. In any such proceeding, any Indemnified
        Person shall have the right to retain its own counsel, but the reasonable
        fees
        and expenses of such counsel shall be at the sole expense of such Indemnified
        Person unless (i) the Indemnifying Person and the Indemnified Person shall
        have
        mutually agreed to the contrary; (ii) the Indemnifying Person has failed
        within
        a reasonable time to retain counsel reasonably satisfactory to the Indemnified
        Person; (iii) the Indemnified Person shall have reasonably concluded that
        there
        may be legal defenses available to it that are different from or in addition
        to
        those available to the Indemnifying Person; or (iv) the named parties in
        any
        such proceeding (including any impleaded parties) include both the Indemnifying
        Person and the Indemnified Person and representation of both parties by the
        same
        counsel would be inappropriate due to actual or potential differing interests
        between them. It is understood and agreed that the Indemnifying Person shall
        not, in connection with any proceeding or related proceeding in the same
        jurisdiction, be liable for the reasonable fees and expenses of more than
        one
        separate firm (in addition to any reasonably necessary local counsel) for
        all
        Indemnified Persons, and that all such reasonable fees and expenses shall
        be
        reimbursed as they are incurred. Any such separate firm (x) for any Initial
        Purchaser, its affiliates, directors and officers and any control Persons
        of
        such Initial Purchaser shall be designated in writing by JPMorgan, (y) for
        any
        Holder, its directors and officers and any control Persons of such Holder
        shall
        be designated in writing by the Majority Holders and (z) in all other cases
        shall be designated in writing by the Company. The Indemnifying Person shall
        not
        be liable for any settlement of any proceeding effected without its written
        consent, but if settled with such consent or if there be a final judgment
        for
        the plaintiff, the Indemnifying Person agrees to indemnify each Indemnified
        Person from and against any loss or liability by reason of such settlement
        or
        judgment. Notwithstanding the foregoing sentence, if at any time an Indemnified
        Person shall have requested that an Indemnifying Person reimburse the
        Indemnified Person for fees and expenses of counsel as contemplated by this
        paragraph, the Indemnifying Person shall be liable for any settlement of
        any
        proceeding effected without its written consent if (i) such settlement is
        entered into more than 30 days after receipt by the Indemnifying Person of
        such
        request and (ii) the Indemnifying Person shall not have reimbursed the
        Indemnified Person in accordance with such request prior to the date of such
        settlement. No Indemnifying Person shall, without the prior written consent
        of
        the Indemnified Person, effect any settlement of any pending or threatened
        proceeding in respect of which any Indemnified Person is or could have been
        a
        party and indemnification could have been sought hereunder by such Indemnified
        Person, unless such settlement (A) includes an unconditional release of such
        Indemnified Person, in form and substance reasonably satisfactory to such
        Indemnified Person, from all liability on claims that are the subject matter
        of
        such proceeding and (B) does not include any statement as to or any admission
        of
        fault, culpability or a failure to act by or on behalf of any Indemnified
        Person.

       

      (d)  If
        the
        indemnification provided for in paragraphs (a) and (b) above is unavailable
        to
        an Indemnified Person or insufficient in respect of any losses, claims, damages
        or liabilities referred to therein, then each Indemnifying Person under such
        paragraph, in lieu of indemnifying such Indemnified Person thereunder, shall
        contribute to the amount paid or payable by such Indemnified Person as a
        result
        of such losses, claims, damages or liabilities (i) in such proportion as
        is
        appropriate to reflect the relative benefits received by the Company and
        the
        Guarantors from the offering of the Securities and the Exchange Securities,
        on
        the one hand, and by the Holders from receiving Securities or Exchange
        Securities registered under the Securities Act, on the other hand, or (ii)
        if
        the allocation provided by clause (i) is not permitted by applicable law,
        in
        such proportion as is appropriate to reflect not only the relative benefits
        referred to in clause (i) but also the relative fault of the Company and
        the
        Guarantors on the one hand and the Holders on the other in connection with
        the
        statements or omissions that resulted in such losses, claims, damages or
        liabilities, as well as any other relevant equitable considerations. The
        relative fault of the Company and the Guarantors on the one hand and the
        Holders
        on the other shall be determined by reference to, among other things, whether
        the untrue or alleged untrue statement of a material fact or the omission
        or
        alleged omission to state a material fact relates to information supplied
        by the
        Company and the Guarantors or by the Holders and the parties’ relative intent,
        knowledge, access to information and opportunity to correct or prevent such
        statement or omission.

       

      (e)  The
        Company, the Guarantors and the Holders agree that it would not be just and
        equitable if contribution pursuant to this Section 5 were determined by
pro rata
        allocation (even if the Holders were treated as one entity for such purpose)
        or
        by any other method of allocation that does not take account of the equitable
        considerations referred to in paragraph (d) above. The amount paid or payable
        by
        an Indemnified Person as a result of the losses, claims, damages and liabilities
        referred to in paragraph (d) above shall be deemed to include, subject to
        the
        limitations set forth above, any legal or other expenses reasonably incurred
        by
        such Indemnified Person in connection with any such action or claim.
        Notwithstanding the provisions of this Section 5, in no event shall a Holder
        be
        required to contribute any amount in excess of the amount by which the
        total
        price at which the Securities or Exchange Securities sold by such Holder
        exceeds
        the amount of any damages that such Holder has otherwise been required to
        pay by
        reason of such untrue or alleged untrue statement or omission or alleged
        omission. No Person guilty of fraudulent misrepresentation (within the meaning
        of Section 11(f) of the Securities Act) shall be entitled to contribution
        from
        any Person who was not guilty of such fraudulent misrepresentation.

       

      (f)  The
        remedies provided for in this Section 5 are not exclusive and shall not limit
        any rights or remedies that may otherwise be available to any Indemnified
        Person
        at law or in equity.

       

      (g)  The
        indemnity and contribution provisions contained in this Section 5 shall remain
        operative and in full force and effect regardless of (i) any termination
        of this
        Agreement, (ii) any investigation made by or on behalf of the Initial Purchaser
        or any Holder or any Person controlling the Initial Purchaser or any Holder,
        or
        by or on behalf of the Company or the Guarantors or the officers or directors
        of
        or any Person controlling the Company or the Guarantors, (iii) acceptance
        of any
        of the Exchange Securities and (iv) any sale of Registrable Securities pursuant
        to a Shelf Registration Statement.

       

      6.  General.

       

      (a)  No
        Inconsistent Agreements. The
        Company and the Guarantors represent, warrant and agree that (i) the rights
        granted to the Holders hereunder do not in any way conflict with and are
        not
        inconsistent with the rights granted to the holders of any other outstanding
        securities issued or guaranteed by the Company or any Guarantor under any
        other
        agreement and (ii) neither the Company nor any Guarantor has entered into,
        or on
        or after the date of this Agreement will enter into, any agreement that is
        inconsistent with the rights granted to the Holders of Registrable Securities
        in
        this Agreement or otherwise conflicts with the provisions hereof.

       

      (b)  Amendments
        and Waivers. The
        provisions of this Agreement, including the provisions of this sentence,
        may not
        be amended, modified or supplemented, and waivers or consents to departures
        from
        the provisions hereof may not be given unless the Company and the Guarantors
        have obtained the written consent of Holders of at least a majority in aggregate
        principal amount of the outstanding Registrable Securities affected by such
        amendment, modification, supplement, waiver or consent; provided however
        that
        no
        amendment, modification, supplement, waiver or consent to any departure from
        the
        provisions of Section 5 hereof shall be effective as against any Holder of
        Registrable Securities unless consented to in writing by such Holder. Any
        amendments, modifications, supplements, waivers or consents pursuant to this
        Section 6(b) shall be by a writing executed by each of the parties
        hereto.

       

      (c)  Notices.
        All
        notices and other communications provided for or permitted hereunder shall
        be
        made in writing by hand-delivery, registered first-class mail, telex,
        telecopier, or any courier guaranteeing overnight delivery (i) if to a Holder,
        at the most current address given by such Holder to the Company by means
        of a
        notice given in accordance with the provisions of this Section 6(c), which
        address initially is, with respect to the Initial Purchaser, the address
        set
        forth in the Purchase Agreement; (ii) if to the Company or any Guarantor,
        initially at the Company’s address set forth in the Purchase Agreement and
        thereafter at such other address, notice of which is given in accordance
        with
        the provisions of this Section 6(c); and to such other persons at their
        respective addresses as provided in the Purchase Agreement and thereafter
        at
        such other address, notice of which is given in accordance with the provisions
        of this Section 6(c). All such notices and communications 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 is acknowledged, if
        telecopied; and on the next Business Day if timely delivered to an air courier
        guaranteeing overnight delivery. Copies of all such notices, demands or other
        communications shall be concurrently delivered by the Person giving the same
        to
        the Trustee, at the address specified in the Indenture.

       

      (d)  Successors
        and Assigns. This
        Agreement shall inure to the benefit of and be binding upon the successors,
        assigns and transferees of each of the parties, including, without limitation
        and without the need for an express assignment, subsequent Holders; provided however
        that
        nothing herein shall be deemed to permit any assignment, transfer or other
        disposition of Registrable Securities in violation of the terms of the Indenture
        and the Purchase Agreement. If any transferee of any Holder shall acquire
        Registrable Securities in any manner, whether by operation of law or otherwise,
        such Registrable Securities shall be held subject to all the terms of this
        Agreement, and by taking and holding such Registrable Securities such Person
        shall be conclusively deemed to have agreed to be bound by and to perform
        all of
        the terms and provisions of this Agreement and such Person shall be entitled
        to
        receive the benefits hereof. The Initial Purchaser (in its capacity as Initial
        Purchaser) shall have no liability or obligation to the Company or the
        Guarantors with respect to any failure by a Holder to comply with, or any
        breach
        by any Holder of, any of the obligations of such Holder under this
        Agreement.

       

      (e)  Third
        Party Beneficiaries.
        Each
        Holder shall be a third party beneficiary to the agreements made hereunder
        between the Company and the Guarantors, on the one hand, and the Initial
        Purchaser, on the other hand, and each Holder shall have the right to enforce
        such agreements directly to the extent it deems such enforcement necessary
        or
        advisable to protect its rights or the rights of other Holders
        hereunder.

       

      (f)  Counterparts.
        This
        Agreement may be executed in any number of counterparts and by the parties
        hereto in separate counterparts, each of which when so executed shall be
        deemed
        to be an original and all of which taken together shall constitute one and
        the
        same agreement.

       

      (g)  Headings.
        The
        headings in this Agreement are for convenience of reference only, are not
        a part
        of this Agreement and shall not limit or otherwise affect the meaning
        hereof.

       

      (h)  Governing
        Law. This
        Agreement shall be governed by and construed in accordance with the laws
        of the
        State of New York.

       

      (i)  Miscellaneous.
        This
        Agreement contains the entire agreement between the parties relating to the
        subject matter hereof and supersedes all oral statements and prior writings
        with
        respect thereto. If any term, provision, covenant or restriction contained
        in
        this Agreement is held by a court of competent jurisdiction to be invalid,
        void
        or unenforceable or against public policy, the remainder of the terms,
        provisions, covenants and restrictions contained herein shall remain in full
        force and effect and shall in no way be affected, impaired or invalidated.
        The
        Company, the Guarantors and the Initial Purchaser shall endeavor in good
        faith
        negotiations to replace the invalid, void or unenforceable provisions with
        valid
        provisions the economic effect of which comes
        as
        close as possible to that of the invalid, void or unenforceable
        provisions.

       

      
        
           

          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

      IN
        WITNESS WHEREOF, the parties have executed this Agreement as of the date
        first
        written above.

       

      SAXON
        CAPITAL, INC.

       

      By:  

       

      Name:

       

      Title:

       

      

       

       

      GUARANTORS

      

      

      SAXON
        CAPITAL HOLDINGS, INC.

       

      By:  

       

      Name:

       

      Title:

       

      SCI
        SERVICES, INC.

       

      By:  

       

      Name:

       

      Title:

       

      SAXON
        MORTGAGE SERVICES, INC.

       

      By:  

       

      Name:

       

      Title:

       

      SAXON
        MORTGAGE, INC.

       

      By:  

       

      Name:

       

      Title:

       

      SAXON
        HOLDING, INC.

       

      By:  

       

      Name:

       

      Title:

       

      SAXON
        FUNDING MANAGEMENT, INC. 

       

      By:  

       

      Name:

       

      Title:

       

      

      Confirmed
        and accepted as of the date first above written:

       

      J.P.
        MORGAN SECURITIES INC.

       

      By:  

      Authorized
        Signatory

       

      

      
        
           

          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

      

       

      Schedule
        I

       

      Guarantors

       

      

       

      

       

       

      1. Saxon
        Capital Holdings, Inc.

       

      2. SCI
        Services, Inc.

       

      3.
         Saxon
        Mortgage Services, Inc.

       

      4. Saxon
        Mortgage, Inc.

       

      5. Saxon
        Holding, Inc.

       

      6.
         Saxon
        Funding Management, Inc.

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