Document:

EX-10.1

Exhibit 10.1

AMENDMENT NO. 7

TO

LOAN AND SECURITY AGREEMENT

THIS AMENDMENT NO. 7 TO LOAN AND SECURITY AGREEMENT (this “Amendment”) is entered into this
26th day of June, 2007, by and between Silicon Valley Bank (“Bank”) and Sipex Corporation, a
Delaware corporation (“Borrower”) whose address is 233 South Hillview Drive, Milpitas, California
95035.

Recitals

A. Bank and Borrower have entered into that certain Loan and Security Agreement dated as of
July 21, 2005 (as the same may from time to time be amended, modified, supplemented or restated,
the “Loan Agreement”).

B. Bank has extended credit to Borrower for the purposes permitted in the Loan Agreement.

C. Borrower has requested that Bank amend the Loan Agreement to make certain revisions to the
Loan Agreement as more fully set forth herein.

D. Bank has agreed to so amend certain provisions of the Loan Agreement, but only to the
extent, in accordance with the terms, subject to the conditions and in reliance upon the
representations and warranties set forth below.

Agreement

Now, Therefore, in consideration of the foregoing recitals and other good and
valuable consideration, the receipt and adequacy of which is hereby acknowledged, and intending to
be legally bound, the parties hereto agree as follows:

1. Definitions. Capitalized terms used but not defined in this Amendment shall have the
meanings given to them in the Loan Agreement.

2. Amendments to Loan Agreement.

2.1 Section 2.1.5(b) (Term Loan). Section 2.1.5(b) is amended in its entirety to
read as follows:

(b) Interest accrues from the date of each Term Loan at the rate set forth in Section 2.3.
Interest on each Term Loan shall be payable beginning on the first day of the month following the
funding date of such Term Loan. Each Term Loan shall be payable in thirty-six (36) equal monthly
installments of principal plus accrued interest; provided however, all of the Term Loan Obligations
shall be paid in full no later than the earliest of (i) a violation of Section 7.2(a) or (b), (ii)
a Merger or Acquisition, or (iii) the Borrower’s receipt of net proceeds from the consummation of
an equity financing of no less than $10,000,000, all of the Term Loan Obligations shall be
immediately due. When repaid or prepaid, the Term Loan may not be reborrowed.

2.2 Section 2.3 (Interest Rate, Payments.). The first sentence of Section 2.3(a) is amended
in its entirety to read as follows: “Advances accrue interest on the outstanding balance at a per
annum rate equal to the Prime Rate plus three percent (3.00%).”

2.3 Section 2.4 (Fees). Section 2.4(a) is amended in its entirety to read as follows:

(a) Success Fee. (i) On or prior to June 26, 2007, a fully-earned, non-refundable success fee
of $20,000, (ii) on or prior to a Merger or Acquisition, an additional, fully-earned,
non-refundable success fee of $55,000 and (iii) an additional, fully-earned, non-refundable fee of
$2,500 shall be incurred per day if the any of the Obligations are not paid in full within 3 days
of the applicable maturity date.

2.4 Section 6.2 (Financial Statements, Reports, Certificates). Section 6.2 is
amended in its entirety to read as follows:

Section 6.2 (Financial Statements, Reports, Certificates).

(a) Borrower will deliver to Bank: (i) as soon as available, but no later than 30 days after
the end of each fiscal month, Borrower prepared consolidated financial statements prepared under
GAAP, consistently applied, subject to year-end audit adjustments and the absence of footnotes and
a deferred revenue report; (ii) as soon as available, but no later than the earlier of within 5
days of filing with the SEC or 50 days after the end of each fiscal quarter, Borrower’s Report on
Form 10-Q containing consolidated financial statements prepared under GAAP, consistently applied,
subject to year-end audit adjustments and the absence of footnotes and a deferred revenue report;
(iii) as soon as available, but no later than the earlier of within 5 days of filing with the SEC
or 90 days after the end of each fiscal year, Borrower’s Report on Form 10-K containing audited
consolidated financial statements prepared under GAAP, consistently applied, together with an
unqualified opinion on the financial statements from an independent certified public accounting
firm reasonably acceptable to Bank; (iv) a prompt report of any legal actions pending or threatened
against Borrower or any Subsidiary that could reasonably result in damages or costs to Borrower or
any Subsidiary of $500,000 or more; (v) within 45 days of the end of each fiscal year budgets,
sales projections, operating plans, 8-K filings or other financial information Bank reasonably
requests, including, a business forecast for the next fiscal year, including quarterly projected
balance sheets, income statements and cash flow statements; and (vi) any other information
regarding the operations, business affairs or financial condition of the Borrower or any
Subsidiary, or compliance with the terms of this Agreement, Bank reasonably requests. Intentionally
Blank.

(b) Intentionally Blank.

(c) will deliver to Bank with the financial statements required in subsection (a) above, a
Compliance Certificate signed by a Responsible Officer in the form of Exhibit C.

(d) Within 30 days after the end of each fiscal month, Borrower shall provide to Bank (i) a
detailed aging of its accounts receivable and accounts payable, and (ii) a Borrowing Base
Certificate signed by a Responsible Officer.

(e) Borrower will allow Bank to audit Borrower’s Collateral at Borrower’s reasonable expense.
Such audits will be conducted no more often than every 3 months unless an Event of Default or an
event which, with notice or passage of time or both would constitute an Event of Default, has
occurred and is continuing.

2.5 Section 6.7 (Financial Covenants). Section 6.7 is amended in its entirety to read as
follows:

(a) Minimum Liquidity Ratio. Borrower will maintain as of the last day of each fiscal month,
a Liquidity Ratio of not less than 1.50:1.00. The Liquidity Ratio is calculated as the sum of (i)
Borrower’s unrestricted cash and cash equivalents, short-term marketable securities and 50% of
consolidated Accounts divided by (ii) the Obligations.

(b) Tangible Net Worth. Borrower will maintain, as of the last day of each fiscal quarter set
forth below, a Tangible Net Worth of at least the amount set forth opposite such date. For
purposes of this calculation, up to $5,000,000 in an aggregate amount of non-cash charges relating
to inventory write-downs and/or restructuring charges may be added to Tangible Net Worth.

	 	 	 
	Fiscal Quarter Ending Date

	 	Minimum Tangible Net Worth
	 

	 	 
	September 30, 2006

December 31, 2006

March 31, 2007

June 30, 2007

	 	$600,000

(-$5,500,000)

(-$10,000,000)

(-$20,000,000)

and each fiscal quarter thereafter $2,500,000 plus 50% of any positive net income for each
fiscal quarter thereafter

2.6 Section 13 (Definitions). The following terms and their respective definitions set forth
in Section 13.1 are amended in their entirety and replaced with the following:

“Revolving Maturity Date” is the earliest of (i) a violation of Section 7.2(a) or (b), (ii) a
Merger or Acquisition, (iii) the Borrower’s receipt of net proceeds from the consummation of an
equity financing of no less than $10,000,000 or (iv) September 29, 2007.

2.7 Exhibits to the Loan Agreement. Exhibit C (Compliance Certificate) is deleted and
replaced with the form attached hereto as Exhibit A. Exhibit E (LIBOR Supplement) is hereby
deleted.

3. Limitation of Amendments.

3.1 The amendments set forth in Sections 2 above, are effective for the purposes set forth
herein and shall be limited precisely as written and shall not be deemed to (a) be a consent to any
amendment or modification of any other term or condition of any Loan Document, or (b) otherwise
prejudice any right or remedy which Bank may now have or may have in the future under or in
connection with any Loan Document.

3.2 This Amendment shall be construed in connection with and as part of the Loan Documents and
all terms, conditions, representations, warranties, covenants and agreements set forth in the Loan
Documents, except as herein amended, are hereby ratified and confirmed and shall remain in full
force and effect.

4. Representations and Warranties. To induce Bank to enter into this Amendment, Borrower
hereby represents and warrants to Bank as follows:

4.1 Immediately after giving effect to this Amendment (a) the representations and warranties
contained in the Loan Documents are true, accurate and complete in all material respects as of the
date hereof (except to the extent such representations and warranties relate to an earlier date, in
which case they are true and correct as of such date), and (b) no Event of Default has occurred and
is continuing;

4.2 Borrower has the power and authority to execute and deliver this Amendment and to perform
its obligations under the Loan Agreement, as amended by this Amendment;

4.3 The organizational documents of Borrower delivered to Bank on the Effective Date remain
true, accurate and complete and have not been amended, supplemented or restated and are and
continue to be in full force and effect;

4.4 The execution and delivery by Borrower of this Amendment and the performance by Borrower
of its obligations under the Loan Agreement, as amended by this Amendment, have been duly
authorized;

4.5 The execution and delivery by Borrower of this Amendment and the performance by Borrower
of its obligations under the Loan Agreement, as amended by this Amendment, do not and will not
contravene (a) any law or regulation binding on or affecting Borrower, (b) any contractual
restriction with a Person binding on Borrower, (c) any order, judgment or decree of any court or
other governmental or public body or authority, or subdivision thereof, binding on Borrower, or
(d) the organizational documents of Borrower;

4.6 The execution and delivery by Borrower of this Amendment and the performance by Borrower
of its obligations under the Loan Agreement, as amended by this Amendment, do not require any
order, consent, approval, license, authorization or validation of, or filing, recording or
registration with, or exemption by any governmental or public body or authority, or subdivision
thereof, binding on either Borrower, except as already has been obtained or made; and

4.7 This Amendment has been duly executed and delivered by Borrower and is the binding
obligation of Borrower, enforceable against Borrower in accordance with its terms, except as such
enforceability may be limited by bankruptcy, insolvency, reorganization, liquidation, moratorium or
other similar laws of general application and equitable principles relating to or affecting
creditors’ rights.

5. Counterparts. This Amendment may be executed in any number of counterparts and all of such
counterparts taken together shall be deemed to constitute one and the same instrument.

6. Effectiveness. This Amendment shall be deemed effective upon (a) the due execution and
delivery to Bank of this Amendment by each party hereto, (b) Borrower’s payment to Bank of the
initial success fee referenced in Section 2.4(a)(i) of the Loan Agreement, (c) satisfactory due
diligence discussions between Bank and Borrower’s investment bankers in regards to the pending
Merger or Acquisition, and (d) payment of all Bank Expenses owing up to the date hereof.

[Signature page follows.]

1

In Witness Whereof, the parties hereto have caused this Amendment to be duly
executed and delivered as of the date first written above.

	 	 	 
	BANK	 	BORROWER
	Silicon Valley Bank

By:  /s/ Ray Aguilar

Name:  Ray Aguilar

Title:  Relationship Manager

	 	Sipex Corporation

By:  /s/ Clyde R. Wallin

Name:  Clyde R. Wallin

Title:  CFO

2

EXHIBIT A

EXHIBIT C

COMPLIANCE CERTIFICATE

	 	 	 
	TO:

FROM:

	 	SILICON VALLEY BANK

3003 Tasman Drive

Santa Clara, CA 95054

Sipex Corporation

The undersigned authorized officer (“Officer”) of Sipex Corporation (“Borrower”) certifies that
under the terms and conditions of the Loan and Security Agreement between Borrower and Bank (the
“Agreement”), (i) Borrower is in complete compliance for the period ending      with all
required covenants except as noted below, and (ii) all representations and warranties in the
Agreement are true and correct in all material respects on this date. In addition, the Officer
certifies that Borrower and each Subsidiary (i) has timely filed all required tax returns and paid,
or made adequate provision to pay, all material taxes, except those being contested in good faith
with adequate reserves under GAAP and (ii) does not have any legal actions pending or threatened
against Borrower or any Subsidiary of which Borrower has not notified Bank in accordance with
Section 6.2 of the Agreement. Attached are the required documents supporting the certifications
contained herein. The Officer certifies that these are prepared in accordance with GAAP
consistently applied from one period to the next except as explained in an accompanying letter or
footnotes. The Officer acknowledges that no borrowings may be requested at any time or date of
determination that Borrower is not in compliance with any of the terms of the Agreement, and that
compliance is determined not just at the date this certificate is delivered.

Please indicate compliance status by circling Yes/No under “Complies” column.

	 	 	 	 	 	 	 
	Reporting Covenant	 	Required	 	Complies
	Compliance Certificate

	 	With monthly, 10Q and 10K

financial statements and with

Cash Holding Report and

Deferred Revenue Report
	 	Yes

	 	No

	Borrower prepared

monthly financial

statements

	 	

Within 30 days of month end
	 	

Yes
	 	

No
	10Q, 10K (Audited)

with financial

statements

	 	Within earlier of 5 days of

issuance or 50 days of

quarter end for 10Q and 90

days for 10K
	 	

Yes
	 	

No
	A/R and A/P Aging

Report and Borrowing

Base Certificate

	 	

Monthly within 30 days
	 	

Yes
	 	

No
	Annual Forecast along

with business

forecast, quarterly

projected balance

sheets, income

statements and cash

flow statements

	 	

Annually within 45 days of FYE
	 	

Yes
	 	

No
	Any other information

regarding the

operations, business

affairs or financial

condition of the

Borrower or any

Subsidiary as Bank

may request

	 	

Promptly after Bank requests
	 	

Yes
	 	

No

	 	 	 	 	 	 	 	 	 
	Financial Covenant	 	Required	 	Actual	 	Complies
	Maintain (at month end):

	 	

	 	

	 	

	 	

	Minimum Liquidity Ratio

	 	1.5:1.00
	 	     :1.00
	 	Yes
	 	No
	Maintain (at quarter end):

	 	

	 	

	 	

	 	

	Minimum Tangible Net Worth

	 	$600,000 (at 9/30/06)

(-$5,500,000) (at 12/31/06)

(-$10,000,000) (at 3/31/07)

(-$20,000,000) (at 6/30/07)

$2,500,000 plus 50% of any

positive net income for

each fiscal quarter

thereafter
	 	$     

	 	Yes

	 	No

	Borrower has deposit

accounts located at the

following institutions

only: Silicon Valley Bank

     

	 	

	 	

	 	

	 	

	 	 	 
	Comments	 	BANK USE ONLY
	Regarding

	 	Received by:
	Exceptions: See

Attached.

	 	AUTHORIZED SIGNER

Date:
	Sincerely,

	 	Verified:
	Sipex Corporation

Signature

	 	AUTHORIZED SIGNER

Date:
	Title

	 	Compliance Status: Yes No
	
 
	 	 
	Date

	 	

3exhibit4_4.htm

    
      

      

    

    
      Exhibit
        4.4

      

      Junior
        Subordinated Indenture

       

      

       

      between

       

      

       

      

       

      Vestin
        Realty Mortgage II, Inc.

       

      

       

      

       

      

       

      and

       

      

       

      

       

      

       

      The
        Bank of New York Trust Company, National Association,

       

      as
        Trustee

       

      ________________

       

      Dated
        as
        of June 22, 2007

       

      ________________

       

      
        

      

      
        
                

                    NY
              #1155026
              v6      
    

          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

      

        TABLE
          OF CONTENTS

        

        
          	 	 	
                  Page

                
	
                  ARTICLE
                    I.

                	
                  Definitions
                    and Other Provisions of General Application

                	
                  1

                
	
                  SECTION
                    1.1.

                	
                  Definitions.

                	
                  1

                
	
                  SECTION
                    1.2.

                	
                  Compliance
                    Certificate and Opinions.

                	
                  12

                
	
                  SECTION
                    1.3.

                	
                  Forms
                    of Documents Delivered to Trustee.

                	
                  12

                
	
                  SECTION
                    1.4.

                	
                  Acts
                    of Holders.

                	
                  13

                
	
                  SECTION
                    1.5.

                	
                  Notices,
                    Etc.  to Trustee and Company.

                	
                  15

                
	
                  SECTION
                    1.6.

                	
                  Notice
                    to Holders; Waiver.

                	
                  15

                
	
                  SECTION
                    1.7.

                	
                  Effect
                    of Headings and Table of Contents.

                	
                  16

                
	
                  SECTION
                    1.8.

                	
                  Successors
                    and Assigns.

                	
                  16

                
	
                  SECTION
                    1.9.

                	
                  Separability
                    Clause.

                	
                  16

                
	
                  SECTION
                    1.10.

                	
                  Benefits
                    of Indenture.

                	
                  16

                
	
                  SECTION
                    1.11.

                	
                  Governing
                    Law.

                	
                  16

                
	
                  SECTION
                    1.12.

                	
                  Submission
                    to Jurisdiction.

                	
                  16

                
	
                  SECTION
                    1.13.

                	
                  Non-Business
                    Days.

                	
                  17

                
	
                  ARTICLE
                    II.

                	
                  Security
                    Forms

                	
                  17

                
	
                  SECTION
                    2.1.

                	
                  Form
                    of Security.

                	
                  17

                
	
                  SECTION
                    2.2.

                	
                  Restricted
                    Legend.

                	
                  21

                
	
                  SECTION
                    2.3.

                	
                  Form
                    of Trustee’s Certificate of Authentication.

                	
                  24

                
	
                  SECTION
                    2.4.

                	
                  Temporary
                    Securities.

                	
                  24

                
	
                  SECTION
                    2.5.

                	
                  Definitive
                    Securities.

                	
                  24

                
	
                  ARTICLE
                    III.

                	
                  The
                    Securities

                	
                  25

                
	
                  SECTION
                    3.1.

                	
                  Payment
                    of Principal and Interest.

                	
                  25

                
	
                  SECTION
                    3.2.

                	
                  Denominations.

                	
                  27

                
	
                  SECTION
                    3.3.

                	
                  Execution,
                    Authentication, Delivery and Dating.

                	
                  27

                
	
                  SECTION
                    3.4.

                	
                  Global
                    Securities.

                	
                  28

                
	
                  SECTION
                    3.5.

                	
                  Registration,
                    Transfer and Exchange Generally.

                	
                  30

                
	
                  SECTION
                    3.6.

                	
                  Mutilated,
                    Destroyed, Lost and Stolen Securities.

                	
                  31

                
	
                  SECTION
                    3.7.

                	
                  Persons
                    Deemed Owners.

                	
                  32

                
	
                  SECTION
                    3.8.

                	
                  Cancellation.

                	
                  32

                
	
                  SECTION
                    3.9.

                	
                  Reserved.

                	
                  33

                
	
                  SECTION
                    3.10.

                	
                  Reserved.

                	
                  33

                
	
                  SECTION
                    3.11.

                	
                  Agreed
                    Tax Treatment.

                	
                  33

                
	
                  SECTION
                    3.12.

                	
                  CUSIP
                    Numbers.

                	
                  33

                
	
                  ARTICLE
                    IV.

                	
                  Satisfaction
                    and Discharge

                	
                  33

                
	
                  SECTION
                    4.1.

                	
                  Satisfaction
                    and Discharge of Indenture.

                	
                  33

                
	
                  SECTION
                    4.2.

                	
                  Application
                    of Trust Money.

                	
                  34

                
	
                  ARTICLE
                    V.

                	
                  Remedies

                	
                  35

                
	
                  SECTION
                    5.1.

                	
                  Events
                    of Default.

                	
                  35

                
	
                  SECTION
                    5.2.

                	
                  Acceleration
                    of Maturity; Rescission and Annulment.

                	
                  36

                
	
                  SECTION
                    5.3.

                	
                  Collection
                    of Indebtedness and Suits for Enforcement by Trustee.

                	
                  37

                
	
                  SECTION
                    5.4.

                	
                  Trustee
                    May File Proofs of Claim.

                	
                  38

                
	
                  SECTION
                    5.5.

                	
                  Trustee
                    May Enforce Claim Without Possession of Securities.

                	
                  38

                
	
                  SECTION
                    5.6.

                	
                  Application
                    of Money Collected.

                	
                  38

                
	
                  SECTION
                    5.7.

                	
                  Limitation
                    on Suits.

                	
                  39

                
	
                  SECTION
                    5.8.

                	
                  Unconditional
                    Right of Holders to Receive Principal, Premium, if any, and Interest;
                    Direct Action by Holders of Preferred Securities.

                	
                  39

                
	
                  SECTION
                    5.9.

                	
                  Restoration
                    of Rights and Remedies.

                	
                  39

                
	
                  SECTION
                    5.10.

                	
                  Rights
                    and Remedies Cumulative.

                	
                  40

                
	
                  SECTION
                    5.11.

                	
                  Delay
                    or Omission Not Waiver.

                	
                  40

                
	
                  SECTION
                    5.12.

                	
                  Control
                    by Holders.

                	
                  40

                
	
                  SECTION
                    5.13.

                	
                  Waiver
                    of Past Defaults.

                	
                  40

                
	
                  SECTION
                    5.14.

                	
                  Undertaking
                    for Costs.

                	
                  41

                
	
                  SECTION
                    5.15.

                	
                  Waiver
                    of Usury, Stay or Extension Laws.

                	
                  41

                
	
                  ARTICLE
                    VI.

                	
                  The
                    Trustee

                	
                  42

                
	
                  SECTION
                    6.1.

                	
                  Corporate
                    Trustee Required.

                	
                  42

                
	
                  SECTION
                    6.2.

                	
                  Certain
                    Duties and Responsibilities.

                	
                  42

                
	
                  SECTION
                    6.3.

                	
                  Notice
                    of Defaults.

                	
                  44

                
	
                  SECTION
                    6.4.

                	
                  Certain
                    Rights of Trustee.

                	
                  44

                
	
                  SECTION
                    6.5.

                	
                  May
                    Hold Securities.

                	
                  46

                
	
                  SECTION
                    6.6.

                	
                  Compensation;
                    Reimbursement; Indemnity.

                	
                  46

                
	
                  SECTION
                    6.7.

                	
                  Resignation
                    and Removal; Appointment of Successor.

                	
                  47

                
	
                  SECTION
                    6.8.

                	
                  Acceptance
                    of Appointment by Successor.

                	
                  48

                
	
                  SECTION
                    6.9.

                	
                  Merger,
                    Conversion, Consolidation or Succession to Business.

                	
                  48

                
	
                  SECTION
                    6.10.

                	
                  Not
                    Responsible for Recitals or Issuance of Securities.

                	
                  49

                
	
                  SECTION
                    6.11.

                	
                  Appointment
                    of Authenticating Agent.

                	
                  49

                
	
                  ARTICLE
                    VII.

                	
                  Holder’s
                    Lists and Reports by Company

                	
                  50

                
	
                  SECTION
                    7.1.

                	
                  Company
                    to Furnish Trustee Names and Addresses of Holders.

                	
                  50

                
	
                  SECTION
                    7.2.

                	
                  Preservation
                    of Information, Communications to Holders.

                	
                  51

                
	
                  SECTION
                    7.3.

                	
                  Reports
                    by Company.

                	
                  51

                
	
                  ARTICLE
                    VIII.

                	
                  Consolidation,
                    Merger, Conveyance, Transfer or Lease

                	
                  52

                
	
                  SECTION
                    8.1.

                	
                  Company
                    May Consolidate, Etc., Only on Certain Terms.

                	
                  52

                
	
                  SECTION
                    8.2.

                	
                  Successor
                    Company Substituted.

                	
                  53

                
	
                  ARTICLE
                    IX.

                	
                  Supplemental
                    Indentures

                	
                  53

                
	
                  SECTION
                    9.1.

                	
                  Supplemental
                    Indentures without Consent of Holders.

                	
                  53

                
	
                  SECTION
                    9.2.

                	
                  Supplemental
                    Indentures with Consent of Holders.

                	
                  54

                
	
                  SECTION
                    9.3.

                	
                  Execution
                    of Supplemental Indentures.

                	
                  55

                
	
                  SECTION
                    9.4.

                	
                  Effect
                    of Supplemental Indentures.

                	
                  55

                
	
                  SECTION
                    9.5.

                	
                  Reference
                    in Securities to Supplemental Indentures.

                	
                  55

                
	
                  ARTICLE
                    X.

                	
                  Covenants

                	
                  56

                
	
                  SECTION
                    10.1.

                	
                  Payment
                    of Principal, Premium, if any, and Interest.

                	
                  56

                
	
                  SECTION
                    10.2.

                	
                  Money
                    for Security Payments to be Held in Trust.

                	
                  56

                
	
                  SECTION
                    10.3.

                	
                  Statement
                    as to Compliance.

                	
                  57

                
	
                  SECTION
                    10.4.

                	
                  Calculation
                    Agent.

                	
                  57

                
	
                  SECTION
                    10.5.

                	
                  Additional
                    Tax Sums.

                	
                  58

                
	
                  SECTION
                    10.6.

                	
                  Additional
                    Covenants.

                	
                  58

                
	
                  SECTION
                    10.7.

                	
                  Waiver
                    of Covenants.

                	
                  59

                
	
                  SECTION
                    10.8.

                	
                  Treatment
                    of Securities.

                	
                  60

                
	
                  SECTION
                    10.9

                	
                  Financial
                    Covenants

                	
                  59

                
	
                  SECTION
                    10.10

                	
                  Delivery
                    of Information

                	
                  59

                
	
                  SECTION
                    10.11

                	
                  Inspection
                    of Books and Records

                	
                  59

                
	
                  ARTICLE
                    XI.

                	
                  Redemption
                    of Securities

                	
                  61

                
	
                  SECTION
                    11.1.

                	
                  Optional
                    Redemption.

                	
                  61

                
	
                  SECTION
                    11.2.

                	
                  Special
                    Event Redemption.

                	
                  61

                
	
                  SECTION
                    11.3.

                	
                  Election
                    to Redeem; Notice to Trustee.

                	
                  61

                
	
                  SECTION
                    11.4.

                	
                  Selection
                    of Securities to be Redeemed.

                	
                  62

                
	
                  SECTION
                    11.5.

                	
                  Notice
                    of Redemption.

                	
                  62

                
	
                  SECTION
                    11.6.

                	
                  Deposit
                    of Redemption Price.

                	
                  63

                
	
                  SECTION
                    11.7.

                	
                  Payment
                    of Securities Called for Redemption.

                	
                  63

                
	
                  ARTICLE
                    XII.

                	
                  Subordination
                    of Securities

                	
                  62

                
	
                  SECTION
                    12.1.

                	
                  Securities
                    Subordinate to Senior Debt.

                	
                  62

                
	
                  SECTION
                    12.2.

                	
                  No
                    Payment When Senior Debt in Default; Payment Over of Proceeds
                    Upon
                    Dissolution, Etc.

                	
                  62

                
	
                  SECTION
                    12.3.

                	
                  Payment
                    Permitted If No Default.

                	
                  64

                
	
                  SECTION
                    12.4.

                	
                  Subrogation
                    to Rights of Holders of Senior Debt.

                	
                  64

                
	
                  SECTION
                    12.5.

                	
                  Provisions
                    Solely to Define Relative Rights.

                	
                  64

                
	
                  SECTION
                    12.6.

                	
                  Trustee
                    to Effectuate Subordination.

                	
                  65

                
	
                  SECTION
                    12.7.

                	
                  No
                    Waiver of Subordination Provisions.

                	
                  65

                
	
                  SECTION
                    12.8.

                	
                  Notice
                    to Trustee.

                	
                  65

                
	
                  SECTION
                    12.9.

                	
                  Reliance
                    on Judicial Order or Certificate of Liquidating Agent.

                	
                  66

                
	
                  SECTION
                    12.10.

                	
                  Trustee
                    Not Fiduciary for Holders of Senior Debt.

                	
                  66

                
	
                  SECTION
                    12.11.

                	
                  Rights
                    of Trustee as Holder of Senior Debt; Preservation of Trustee’s
                    Rights.

                	
                  66

                
	
                  SECTION
                    12.12.

                	
                  Article
                    Applicable to Paying Agents

                	
                  68

                
	
                  ARTICLE
                    XIII.

                	
                  Defeasance

                	
                  67

                
	
                  SECTION
                    13.1.

                	
                  Defeasance
                    and Discharge

                	
                  67

                
	
                  SECTION
                    13.2.

                	
                  Conditions
                    to Defeasance

                	
                  67

                
	
                  SECTION
                    13.3.

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

                	
                  68

                
	
                  SECTION
                    13.4.

                	
                  Reinstatement.

                	
                  69

                

        

        

        

        SCHEDULES

        

        Schedule
          A–Determination of LIBOR

        Exhibit
          A–Form of Officer’s Financial Certificate

        

        
          
            
            

          

          
            
            

            
              

            

          

          
            
            

          

        

      Junior
        Subordinated Indenture, dated as of June 22, 2007, between Vestin Realty
        Mortgage II, Inc., a Maryland corporation (the “Company”), and The Bank
        of New York Trust Company,National Association, a national banking
        association, as Trustee (in such capacity, the “Trustee”).

       

      Recitals
        of the Company

       

      Whereas,
        the Company has duly authorized the execution and delivery of this Indenture
        to
        provide for the issuance of its unsecured junior subordinated notes (the
        “Securities”) issued to evidence loans made to the Company of the
        proceeds from the issuance by Vestin II Capital Trust I, a
        Delaware statutory trust (the “Trust”), of
        undivided preferred beneficial interests in the assets of the Trust (the
        “Preferred Securities”) and undivided common beneficial interests in
        the assets of the Trust (the “Common Securities” and, together with the
        Preferred Securities, the “Trust Securities”), and to provide the terms
        and conditions upon which the Securities are to be authenticated, issued
        and
        delivered; and

       

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

       

      Now,
        Therefore, this Indenture Witnesseth:

       

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

       

       

      ARTICLE
        I

       

       

      

       

       

      Definitions
        and Other Provisions of General Application

       

      SECTION
        1.1.  Definitions.

       

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

       

      (a)  the
        terms
        defined in this Article I have the meanings assigned to them in this
Article I;

       

      (b)  the
        words
“include”, “includes” and “including” shall be deemed to be followed by the
        phrase “without limitation”;

       

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

       

      (d)  unless
        the context otherwise requires, any reference to an “Article” or a “Section”
refers to an Article or a Section, as the case may be, of this
        Indenture;

       

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

       

      (f)  a
        reference to the singular includes the plural and vice versa; and

       

      (g)  the
        masculine, feminine or neuter genders used herein shall include the masculine,
        feminine and neuter genders.

       

      “Act”
        when used with respect to any Holder, has the meaning specified in Section
        1.4.

       

      “Administrative
        Trustee” means, with respect to the Trust, each Person identified as an
“Administrative Trustee” in the Trust Agreement, solely in its capacity as
        Administrative Trustee of the Trust under the Trust Agreement and not in
        its
        individual capacity, or its successor in interest in such capacity, or any
        successor Administrative Trustee appointed as therein provided.

       

      “Additional
        Interest” means the interest, if any, that shall accrue on any amounts
        payable on the Securities, the payment of which has not been made on the
        applicable Interest Payment Date and which shall accrue at the rate per annum
        specified or determined as specified in such Security, in each case to the
        extent legally enforceable.

       

      “Additional
        Tax Sums” has the meaning specified in Section 10.5.

       

      “Additional
        Taxes” means taxes, duties or other governmental charges imposed on the
        Trust as a result of a Tax Event (which, for the sake of clarity, does not
        include amounts required to be deducted or withheld by the Trust from payments
        made by the Trust to or for the benefit of the Holder of, or any Person that
        acquires a beneficial interest in, the Securities).

       

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

       

      “Applicable
        Depositary Procedures” means, with respect to any transfer or transaction
        involving a Global Security or beneficial interest therein, the rules and
        procedures of the Depositary for such Security, in each case to the extent
        applicable to such transaction and as in effect from time to time.

       

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

       

      “Board
        of Directors” means the board of directors of the Company or any duly
        authorized committee of that board.

       

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

       

       “Breakage
        Costs” means any and all reasonable costs and fees of any holder of
        Preferred Securities (including, without limitation, the reasonable fees
        and
        expenses of any counsel engaged by such holder to enforce the obligations
        of the
        Company hereunder) (as determined by such holder) directly associated or
        incurred in connection with the unwinding, terminating, modifying or otherwise
        breaking of any interest rate swap or other interest rate hedging arrangement
        entered into with respect to the interest rate on the Preferred Securities
        prior
        to the expiration of the Fixed Rate Period where such unwinding, termination,
        modification or breaking is caused by the payment of principal on the Securities
        prior to the expiration of the Fixed Rate Period.

       

      “Breakage
        Gains” means the amount of gain actually realized by any holder of
        Preferred Securities (as reasonably determined by such holder), directly
        associated or incurred in connection with unwinding, terminating, modifying
        or
        otherwise breaking any interest rate swap or other interest rate hedging
        arrangement entered into with respect to the interest rate on the Preferred
        Securities prior to the expiration of the Fixed Rate Period where such
        unwinding, termination, modification or breaking is caused by the payment
        of
        principal on the Securities prior to the expiration of the Fixed Rate
        Period.

       

      “Business
        Day” means any day other than (i) a Saturday or Sunday, (ii) a day on which
        banking institutions in the City of New York are authorized or required by
        law
        or executive order to remain closed or (iii) a day on which the Corporate
        Trust
        Office of the Trustee is closed for business.

       

      “Calculation
        Agent” has the meaning specified in Section 10.4.

       

      “Change
        of Control” means (i) any person (as such term is used in Sections 13(d)
        and 14(d) of the Exchange Act), including a “group” as defined in Section
        13(d)(3) of the Exchange Act (but excluding a director or other fiduciary
        holding securities under an employee benefit plan of the Company), becomes
        the
        beneficial owner of Equity Interests of the Company having at least fifty
        percent (50%) of the total number of votes that may be cast for the election
        of
        directors of the Company; (ii) the merger or other business combination of
        the
        Company, sale of all or substantially all of the Company’s assets or combination
        of the foregoing transactions (a “Transaction”), other than a
        Transaction immediately following which the shareholders of the Company
        immediately prior to the Transaction continue to have a majority of the voting
        power in the resulting entity (excluding for this purpose any shareholder
        owning
        directly or indirectly more than ten percent (10%) of the shares of the other
        company involved in the Transaction); or (iii) the persons who were directors
        of
        the Company on the date hereof (the “Incumbent Directors”) shall cease
        to constitute at least a majority of the Board or a majority of the board
        of
        directors of any successor to the Company; provided, that, any director
        who was not a director as of the date hereof shall be deemed to be an Incumbent
        Director if such director was elected to the Board by, or on the recommendation
        of or with the approval of, at least two-thirds of the directors who then
        qualified as Incumbent Directors either actually or by prior operation of
        this
        provision, unless such election, recommendation or approval was the result
        of an
        actual or threatened election contest of the type contemplated by Regulation
        14a-11 promulgated under the Exchange Act or any successor
        provision.

       

      “Change
        of Control Election”  has the meaning specified in Section
        10.6(d).

       

      “Change
        of Control Notice” has the meaning specified in Section
        10.6(d).

       

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

       

      “Common
        Securities” has the meaning specified in the first recital of this
        Indenture.

       

      “Commission”
        has the meaning specified in Section 7.3(c).

       

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

       

      “Company
        Request” and “Company Order” mean, respectively, the written
        request or order signed in the name of the Company by its Chairman of the
        Board
        of Directors, its Vice Chairman of the Board of Directors, its Chief Executive
        Officer, President or a Vice President, and by its Chief Financial Officer,
        its
        Treasurer, an Assistant Treasurer, its Secretary or an Assistant Secretary,
        and
        delivered to the Trustee. Notwithstanding the foregoing, a Company Order
        for the
        purposes of authentication and delivery of the Securities pursuant to Section
        3.3(a) shall require the signature of only one of the above referenced
        officers of the Company.

       

      “Corporate
        Trust Office” means the principal office of the Trustee at which at any
        particular time its corporate trust business shall be administered, which
        office
        at the date of this Indenture is located at 601 Travis, 16th Floor,
        Houston,
        Texas 77002 Attn: Global Corporate Trust – Vestin Realty Mortgage II, Inc.
        Initially, all notices and correspondence shall be addressed to Mudassir
        Mohamed, telephone number (713) 483-6029.

       

      “Debt”
        means, with respect to any Person, whether recourse is to all or a portion
        of
        the assets of such Person, whether currently existing or hereafter incurred
        and
        whether or not contingent and without duplication, (i) every obligation of
        such
        Person for money borrowed; (ii) every obligation of such Person evidenced
        by
        bonds, debentures, notes or other similar instruments, including obligations
        incurred in connection with the acquisition of property, assets or businesses;
        (iii) every reimbursement obligation of such Person with respect to letters
        of
        credit, bankers’ acceptances or similar facilities issued for the account of
        such Person; (iv) every obligation of such Person issued or assumed as the
        deferred purchase price of property or services (but excluding trade accounts
        payable or other accrued liabilities arising in the ordinary course of
        business); (v) every capital lease obligation of such Person; (vi) all
        indebtedness of such Person, whether incurred on or prior to the date of
        this
        Indenture or thereafter incurred, for claims in respect of derivative products,
        including interest rate, foreign exchange rate and commodity forward contracts,
        options and swaps and similar arrangements; (vii) every obligation of the
        type
        referred to in clauses (i) through (vi) of another Person and all dividends
        of
        another Person the payment of which, in either case, such Person has guaranteed
        or is responsible or liable for, directly or indirectly, as obligor or
        otherwise; and (viii) any renewals, extensions, refundings, amendments or
        modifications of any obligation of the type referred to in clauses (i) through
        (vii).

       

      “Defaulted
        Interest” has the meaning specified in Section 3.1(c).

       

      “Defeasance”
        has the meaning specified in Section 13.1.

       

      “Defeasance
        Maturity Date” has the meaning specified in Section
        13.2(a).

       

      “Delaware
        Trustee” means, with respect to the Trust, the Person identified as the
“Delaware Trustee” in the Trust Agreement, solely in its capacity as Delaware
        Trustee of the Trust under the Trust Agreement and not in its individual
        capacity, or its successor in interest in such capacity, or any successor
        Delaware Trustee appointed as therein provided.

       

      “Depositary”
        means an organization registered as a clearing agency under the Exchange
        Act
        that is designated as Depositary by the Company or any successor
        thereto.  DTC will be the initial Depositary.

       

      “Depositary
        Participant” means a broker, dealer, bank, other financial institution or
        other Person for whom from time to time a Depositary effects book-entry
        transfers and pledges of securities deposited with the Depositary.

       

      “Distributions”
        means amounts payable in respect of the Trust Securities as provided in the
        Trust Agreement and referred to therein as “Distributions.”

       

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

       

      “DTC”
        means The Depository Trust Company, a New York corporation, or any successor
        thereto.

       

      “EBITDA”
        means, for any period, without duplication:

       

      (a)           the
        sum of the following amounts attributable to such period: (i) Net Income,
        plus (ii) Interest Expense, (iii) charges against income for all federal,
        state and local taxes, (iv) depreciation expense, (v) amortization expense,
        (vi)
        other non-cash charges and expenses (including non-cash charges resulting
        from
        accounting changes), and (vii) any losses arising outside of the ordinary
        course
        of business which have been included in the determination of Net Income,
        all as
        determined in accordance with GAAP on a consolidated basis for the Company
        and
        its consolidated subsidiaries, minus

       

      (b)           any
        gains arising outside the ordinary course of business which have been included
        in the determination of Net Income, as determined on a consolidated basis
        for
        the Company and its consolidated subsidiaries.

       

      “EDGAR”
        has the meaning specified in Section 7.3(c).

       

      “Electing
        Securities” means the Outstanding Securities corresponding to the Preferred
        Securities held by a holder of Preferred Securities making a Change of Control
        Election.

       

      “Equity
        Interests” means (a) the partnership interests (general or limited) in a
        partnership, (b) the membership interests in a limited liability company
        and (c)
        the shares or stock interests (both common stock and preferred stock) in
        a
        corporation.

       

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

       

      “Exchange
        Act” means the Securities Exchange Act of 1934 or any statute successor
        thereto, in each case as amended from time to time.

       

      “Expiration
        Date” has the meaning specified in Section 1.4(h).

       

      “Fixed
        Rate Period” shall have the meaning in the form of Security set forth in
Section 2.1.

       

      “GAAP”
        means United States generally accepted accounting principles, consistently
        applied, from time to time in effect.

       

      “Global
        Security” means a Security offered and sold in reliance on Regulation S
        under the Securities Act that evidences all or part of the Securities, the
        ownership and transfers of which shall be made through book entries by a
        Depositary.

       

      “Government
        Obligation” means (a) any security that is (i) a direct obligation of the
        United States of America of which the full faith and credit of the United
        States
        of America is pledged or (ii) an obligation of a Person controlled or supervised
        by and acting as an agency or instrumentality of the United States of America
        or
        the payment of which is unconditionally guaranteed as a full faith and credit
        obligation by the United States of America, which, in either case (i) or
        (ii),
        is not callable or redeemable at the option of the issuer thereof, and (b)
        any
        depositary receipt issued by a bank (as defined in Section 3(a)(2) of the
        Securities Act) as custodian with respect to any Government Obligation that
        is
        specified in clause (a) above and held by such bank for the account of the
        holder of such depositary receipt, or with respect to any specific payment
        of
        principal of or interest on any Government Obligation that is so specified
        and
        held, provided, that (except as required by law) such custodian is not
        authorized to make any deduction from the amount payable to the holder of
        such
        depositary receipt from any amount received by the custodian in respect of
        the
        Government Obligation or the specific payment of principal or interest evidenced
        by such depositary receipt.

       

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

       

      “Indenture”
        means this instrument as originally executed or as it may from time to time
        be
        amended or supplemented by one or more amendments or indentures supplemental
        hereto entered into pursuant to the applicable provisions hereof.

       

      “Interest
        Expense” means for any period, without duplication, the aggregate amount of
        interest which, in accordance with GAAP, would be included on an income
        statement for the Company and its consolidated subsidiaries on a consolidated
        basis as interest expense, together with all interest capitalized or deferred
        during such period.

       

      “Interest
        Payment Date” means January 30, April 30, July 30 and October 30 of each
        year, commencing on July 30, 2007, during the term of this
        Indenture.

       

      “Investment
        Company Act” means the Investment Company Act of 1940, as amended, or any
        successor statute thereto, in each case as amended from time to
        time.

       

      “Investment
        Company Event” means the receipt by the Company of an Opinion of Counsel
        experienced in such matters to the effect that, as a result of the occurrence
        of
        a change in law or regulation (including any announced prospective change)
        or a
        written change in interpretation or application of law or regulation by any
        legislative body, court, governmental agency or regulatory authority, there
        is
        more than an insubstantial risk that the Trust is or, within ninety (90)
        days of
        the date of such opinion will be, considered an “investment company” that is
        required to be registered under the Investment Company Act, which change
        or
        prospective change becomes effective or would become effective, as the case
        may
        be, on or after the date of the issuance of the Securities.

       

      “LIBOR”
        has the meaning specified in Schedule A.

       

      “LIBOR
        Business Day” has the meaning specified in Schedule A.

       

      “LIBOR
        Determination Date” has the meaning specified in Schedule
        A.

       

      “Liquidation
        Amount” has the meaning specified in the Trust Agreement.

       

      “Mandatory
        Redemption Price” has the meaning specified in Section
        11.1(b).

       

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

       

      “Net
        Income”
means,
        with reference to any period, the net income (or loss) of the Company and
        its
        subsidiaries for such period (taken as a cumulative whole), as determined
        in
        accordance with GAAP, after eliminating all offsetting debits and credits
        between the Company and its subsidiaries and all other items required to
        be
        eliminated in the course of the preparation of consolidated financial statements
        of the Company and its subsidiaries in accordance with GAAP.

       

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

       

      “Officer’s
        Certificate” means a certificate signed by the Chairman of the Board, a
        Vice Chairman of the Board, the Chief Executive Officer, the President or
        a Vice
        President, and by the Chief Financial Officer, the Treasurer, an Assistant
        Treasurer, the Secretary or an Assistant Secretary, of the Company and delivered
        to the Trustee.

       

      “Opinion
        of Counsel” means a written opinion of counsel, who may be counsel for or
        an employee of the Company or any Affiliate of the Company.

       

      “Optional
        Redemption Price” has the meaning set forth in Section
        11.1.

       

      “Original
        Issue Date” means the date of original issuance of each
        Security.

       

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

       

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

       

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

       

      (iii)  Securities
        that have been paid or in substitution for or in lieu of which other Securities
        have been authenticated and delivered pursuant to the provisions of this
        Indenture, unless proof satisfactory to the Trustee is presented that any
        such
        Securities are held by Holders in whose hands such Securities are valid,
        binding
        and legal obligations of the Company;

       

      provided,
        that in determining whether the Holders of the requisite principal amount
        of
        Outstanding Securities have given any request, demand, authorization, direction,
        notice, consent or waiver hereunder, Securities owned by the Company or any
        other obligor upon the Securities or any Affiliate of the Company or such
        other
        obligor shall be disregarded and deemed not to be Outstanding unless the
        Company
        shall hold all Outstanding Securities, except that, in determining whether
        the
        Trustee shall be protected in relying upon any such request, demand,
        authorization, direction, notice, consent or waiver, only Securities that
        a
        Responsible Officer of the Trustee actually knows to be so owned shall be
        so
        disregarded.  Securities so owned that have been pledged in good faith
        may be regarded as Outstanding if the pledgee establishes to the satisfaction
        of
        the Trustee the pledgee’s right so to act with respect to such Securities and
        that the pledgee is not the Company or any other obligor upon the Securities
        or
        any Affiliate of the Company or such other obligor.  Notwithstanding
        anything herein to the contrary, Securities initially issued to the Trust
        that
        are owned by the Trust shall be deemed to be Outstanding notwithstanding
        the
        ownership by the Company or an Affiliate of any beneficial interest in the
        Trust.

       

      “Paying
        Agent” means the Trustee or any Person (other than the
        Company or any Affiliate of the Company) authorized by the Company to pay
        the
        principal of or any premium or interest on, or other amounts in respect of,
        any
        Securities on behalf of the Company.

       

      “Person”
        means a legal person, including any individual, corporation, estate,
        partnership, joint venture, association, joint stock company, company, limited
        liability company, trust, unincorporated association, or government, or any
        agency or political subdivision thereof, or any other entity of whatever
        nature.

       

      “Place
        of Payment” means, with respect to the Securities, the Corporate Trust
        Office of the Trustee.

       

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

       

      “Preferred
        Securities” has the meaning specified in the first recital of this
        Indenture.

       

      “Proceeding”
        has the meaning specified in Section 12.2(b).

       

      “Property
        Trustee” means the Person identified as the “Property Trustee” in the Trust
        Agreement, solely in its capacity as Property Trustee of the Trust under
        the
        Trust Agreement and not in its individual capacity, or its successor in interest
        in such capacity, or any successor Property Trustee appointed as therein
        provided.

       

      “Purchase
        Agreement” means the Purchase Agreement or Purchase Agreements (whether one
        or more) executed and delivered contemporaneously with this Indenture by
        the
        Trust, the Company and the purchaser(s) named therein, as the same may be
        amended from time to time.

       

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

       

      “Redemption
        Price” means, when used with respect to any Security to be redeemed, in
        whole or in part, the Special Redemption Price or the Optional Redemption
        Price,
        as applicable, at which such Security or portion thereof is to be redeemed
        as
        fixed by or pursuant to this Indenture.

       

      “Reference
        Banks” has the meaning specified in Schedule A.

       

      “Regular
        Record Date” for the interest payable on any Interest Payment Date with
        respect to the Securities means the date that is fifteen (15) days preceding
        such Interest Payment Date (whether or not a Business Day).

       

      “Responsible
        Officer” means, when used with respect to the Trustee, the officer in the
        Global Corporate Trust department of the Trustee having direct responsibility
        for the administration of this Indenture.

       

      “Rights
        Plan” means a plan of the Company providing for the issuance by the Company
        to all holders of its Equity Interests of rights entitling the holders thereof
        to subscribe for or purchase Equity Interests or any class or series of Equity
        Interests in the Company which rights (i) are deemed to be transferred with
        such
        Equity Interests and (ii) are also issued in respect of future issuances
        of such
        Equity Interests, in each case until the occurrence of a specified event
        or
        events.

       

      “Securities”
        or “Security” means any debt securities or debt security, as the case
        may be, authenticated and delivered under this Indenture.

       

      “Securities
        Act” means the Securities Act of 1933 or any successor statute thereto,
        in
        each case as amended from time to time.

       

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

       

      “Senior
        Debt” means the principal of and any premium and interest on (including
        interest accruing on or after the filing of any petition in bankruptcy or
        for
        reorganization relating to the Company, whether or not such claim for
        post-petition interest is allowed in such proceeding) all Debt of the Company,
        whether incurred on or prior to the date of this Indenture or thereafter
        incurred, unless it is provided in the instrument creating or evidencing
        the same or pursuant to which the same is outstanding, that such obligations
        are
        not superior in right of payment to the Securities issued under this
        Indenture; provided, that Senior Debt shall not be deemed to
        include any (i) debt or (ii) other debt securities (and guarantees, if any,
        in
        respect of such debt securities) issued to any trust other than the Trust
        (or a
        trustee of any such trust), partnership or other entity affiliated with the
        Company that is a financing vehicle of the Company (a “financing entity”) in
        connection with the issuance by such financing entity of equity securities
        or
        other securities, in each case of (i) or (ii) pursuant to an instrument that
        ranks pari passu with or junior in right of payment to this
        Indenture.

       

      “Special
        Event” means the occurrence of an Investment Company Event or a Tax
        Event.

       

      “Special
        Record Date” for the payment of any Defaulted Interest means a date fixed
        by the Trustee pursuant to Section 3.1(c)(i).

       

      “Special
        Redemption Price” has the meaning set forth in Section
        11.2.

       

      “Stated
        Maturity” means July 30, 2020.

       

      “Subsidiary”
        of a Person means (a) any corporation more than 50% of the outstanding
        securities having ordinary voting power of which shall at the time be owned
        or
        controlled, directly or indirectly, by such Person and/or by one or more
        of its
        Subsidiaries or (b) any partnership, limited liability company, association,
        joint venture or similar business organization more than 50% of the ownership
        interests having ordinary voting power of which shall at the time be owned
        or
        controlled, directly or indirectly, by such Person and/or by one or more
        of its
        Subsidiaries.  Unless otherwise expressly provided, all references
        herein to a “Subsidiary” shall mean a Subsidiary of the Company.

       

      “Taberna”
        has the meaning set forth in Section 7.3(b).

       

      “Tangible
        Net Worth” means, at any time:

       

      (a)           the
        total assets of the Company and its subsidiaries which would be shown as
        assets
        on a consolidated balance sheet of the Company and its subsidiaries as of
        such
        time prepared in accordance with GAAP, after eliminating all amounts properly
        attributable to minority interests, if any, in the stock and surplus of
        subsidiaries, minus

      

      (b)           Total
        Debt, minus

      

      (c)           the
        net book value of all assets, after deducting any reserves applicable thereto,
        which would be treated as intangible under GAAP, including, without limitation,
        good will, trademarks, trade names, service marks, brand names, copyrights,
        patents and unamortized debt discount and expense, organizational expenses
        and
        the excess of the equity in any Subsidiary over the cost of the investment
        in
        such Subsidiary.

       

      “Tax
        Event” means the receipt by the Company of an Opinion of Counsel
        experienced in such matters to the effect that, as a result of (a) any amendment
        to or change (including any announced prospective change) in the laws or
        any
        regulations thereunder of the United States or any political subdivision
        or
        taxing authority thereof or therein or (b) any judicial decision or any official
        administrative pronouncement (including any private letter ruling, technical
        advice memorandum or field service advice) or regulatory procedure, including
        any notice or announcement of intent to adopt any such pronouncement or
        procedure (an “Administrative Action”), regardless of whether such
        judicial decision or Administrative Action is issued to or in connection
        with a
        proceeding involving the Company or the Trust and whether or not subject
        to
        review or appeal, which amendment, change, judicial decision or Administrative
        Action is enacted, promulgated or announced, in each case, on or after the
        date
        of issuance of the Securities, there is more than an insubstantial risk that
        (i)
        the Trust is, or will be within ninety (90) days of the date of such opinion,
        subject to United States federal income tax with respect to income received
        or
        accrued on the Securities, (ii) interest payable by the Company on the
        Securities is not, or within ninety (90) days of the date of such opinion,
        will
        not be, deductible by the Company, in whole or in part, for United States
        federal income tax purposes, or (iii) the Trust is, or will be within ninety
        (90) days of the date of such opinion, subject to more than a de
        minimis amount of other taxes, duties or other governmental
        charges.

       

      “Total
        Debt”
means
the
        total liabilities of the Company and its Subsidiaries that would be shown
        as
        liabilities on a consolidated balance sheet of the Company and its Subsidiaries
        as of such time prepared in accordance with GAAP.

       

      “Trust”
        has the meaning specified in the first recital of this Indenture.

       

      “Trust
        Agreement” means the Amended and Restated Trust Agreement executed and
        delivered by the Company, the Property Trustee, The Bank of New York (Delaware),
        as Delaware Trustee and the Administrative Trustees named therein,
        contemporaneously with the execution and delivery of this Indenture, for
        the
        benefit of the holders of the Trust Securities, as amended or supplemented
        from
        time to time.

       

      “Trustee”
        means the Person named as the “Trustee” in the first paragraph of this
        instrument, solely in its capacity as such and not in its individual capacity,
        until a successor Trustee shall have become such pursuant to the applicable
        provisions of this Indenture, and, thereafter, “Trustee” shall mean or
        include each Person who is then a Trustee hereunder.

       

      “Trust
        Indenture Act” means the Trust Indenture Act of 1939, as
        amended and as in effect on the date as of this Indenture.

       

      “Trust
        Securities” has the meaning specified in the first recital of this
        Indenture.

       

      SECTION
        1.2.  Compliance
        Certificate and Opinions.

       

      (a)  Upon
        any
        application or request by the Company to the Trustee to take any action under
        any provision of this Indenture, the Company shall, if requested by the Trustee,
        furnish to the Trustee an Officer’s Certificate stating that all conditions
        precedent (including covenants compliance with which constitutes a condition
        precedent), if any, provided for in this Indenture relating to the proposed
        action have been complied with and an Opinion of Counsel stating that in
        the
        opinion of such counsel all such conditions precedent (including covenants
        compliance with which constitutes a condition precedent), if any, have been
        complied with.

       

      (b)  Every
        certificate or opinion with respect to compliance with a condition or covenant
        provided for in this Indenture (other than the certificate provided pursuant
        to
Section 10.3) shall include:

       

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

       

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

       

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

       

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

       

      SECTION
        1.3.  Forms
        of Documents Delivered to Trustee.

       

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

       

      (b)  Any
        certificate or opinion of an officer of the Company may be based, insofar
        as it
        relates to legal matters, upon a certificate or opinion of, or representations
        by, counsel, unless such officer knows, or after reasonable inquiry should
        know,
        that the certificate or opinion or representations with respect to matters
        upon
        which his or her certificate or opinion is based are erroneous.  Any
        such certificate or Opinion of Counsel may be based, insofar as it relates
        to
        factual matters, upon a certificate or opinion of, or representations by,
        an
        officer or officers of the Company stating that the information with respect
        to
        such factual matters is in the possession of the Company, unless such counsel
        knows, or after reasonable inquiry should know, that the certificate or opinion
        or representations with respect to such matters are erroneous.

       

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

       

      (d)  Whenever,
        subsequent to the receipt by the Trustee of any Board Resolution, Officer’s
        Certificate, Opinion of Counsel or other document or instrument, a clerical,
        typographical or other inadvertent or unintentional error or omission shall
        be
        discovered therein, a new document or instrument may be substituted therefor
        in
        corrected form with the same force and effect as if originally received in
        the
        corrected form and, irrespective of the date or dates of the actual execution
        and/or delivery thereof, such substitute document or instrument shall be
        deemed
        to have been executed and/or delivered as of the date or dates required with
        respect to the document or instrument for which it is
        substituted.  Without limiting the generality of the foregoing, any
        Securities issued under the authority of such defective document or instrument
        shall nevertheless be the valid obligations of the Company entitled to the
        benefits of this Indenture equally and ratably with all other Outstanding
        Securities.

       

      SECTION
        1.4.  Acts
        of Holders.

       

      (a)  Any
        request, demand, authorization, direction, notice, consent, waiver or other
        action provided by this Indenture to be given to 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 thereof duly appointed
        in
        writing; and, except as herein otherwise expressly provided, such action
        shall
        become effective when such instrument or instruments (including any appointment
        of an agent) is or are delivered to the Trustee, and, where it is hereby
        expressly required, to the Company.  Such instrument or instruments
        (and the action embodied therein and evidenced thereby) are herein sometimes
        referred to as the “Act” of the Holders signing such instrument or
        instruments.  Proof of execution of any such instrument or of a
        writing appointing any such agent shall be sufficient for any purpose of
        this
        Indenture and conclusive in favor of the Trustee and the Company, if made
        in the
        manner provided in this Section 1.4.

       

      (b)  The
        fact
        and date of the execution by any Person of any such instrument or writing
        may be
        proved by the affidavit of a witness of such execution or by 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 or her the execution thereof.  Where such
        execution is by a Person acting in other than his or her individual capacity,
        such certificate or affidavit shall also constitute sufficient proof of his
        or
        her authority.  The fact and date of the execution by any Person 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
        and in accordance with such reasonable rules as the Trustee may
        determine.

       

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

       

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

       

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

       

      (f)  Except
        as
        set forth in paragraph (g) of this Section 1.4, the Company may set any
        day as a record date for the purpose of determining the Holders of Outstanding
        Securities entitled to give, make or take any request, demand, authorization,
        direction, notice, consent, waiver or other action provided or permitted
        by this
        Indenture to be given, made or taken by Holders of Securities.  If any
        record date is set pursuant to this paragraph, the Holders of Outstanding
        Securities on such record date, and no other Holders, shall be entitled to
        take
        the relevant action, whether or not such Holders remain Holders after such
        record date; provided, that no such action shall be effective hereunder
        unless taken on or prior to the applicable Expiration Date (as defined in
        Section 1.4(h)) by Holders of the requisite principal amount of
        Outstanding Securities on such record date.  Nothing in this paragraph
        shall be construed to prevent the Company from setting a new record date
        for any
        action for which a record date has previously been set pursuant to this
        paragraph (whereupon the record date previously set shall automatically and
        with
        no action by any Person be canceled and of no effect).  Promptly after
        any record date is set pursuant to this paragraph, the Company, at its own
        expense, shall cause notice of such record date, the proposed action by Holders
        and the applicable Expiration Date to be given to the Trustee in writing
        and to
        each Holder of Securities in the manner set forth in Section
        1.6.

       

      (g)  The
        Trustee may set any day as a record date for the purpose of determining the
        Holders of Outstanding Securities entitled to join in the giving or making
        of
        (i) any Notice of Default, (ii) any declaration of acceleration or rescission
        or
        annulment thereof referred to in Section 5.2, (iii) any request to
        institute proceedings referred to in Section 5.7(b) or (iv) any direction
        referred to in Section 5.12.  If any record date is set
        pursuant to this paragraph, the Holders of Outstanding Securities on such
        record
        date, and no other Holders, shall be entitled to join in such notice,
        declaration, request or direction, whether or not such Holders remain Holders
        after such record date; provided, that no such action shall be
        effective hereunder unless taken on or prior to the applicable Expiration
        Date
        by Holders of the requisite principal amount of Outstanding Securities on
        such
        record date.  Nothing in this paragraph shall be construed to prevent
        the Trustee from setting a new record date for any action for which a record
        date has previously been set pursuant to this paragraph (whereupon the record
        date previously set shall automatically and with no action by any Person
        be
        canceled and of no effect).  Promptly after any record date is set
        pursuant to this paragraph, the Trustee, at the Company’s expense, shall cause
        notice of such record date, the proposed action by Holders and the applicable
        Expiration Date to be given to the Company in writing and to each Holder
        of
        Securities in the manner set forth in Section 1.6.

       

      (h)  With
        respect to any record date set pursuant to paragraph (f) or (g) of this
Section 1.4, the party hereto that sets such record date may designate
        any day as the “Expiration Date” and from time to time may change the
        Expiration Date to any earlier or later day; provided, that no such
        change shall be effective unless notice of the proposed new Expiration Date
        is
        given to the other party hereto in writing, and to each Holder of Securities
        in
        the manner set forth in Section 1.6, on or prior to the existing
        Expiration Date.  If an Expiration Date is not designated with respect
        to any record date set pursuant to this Section 1.4, the party hereto
        that set such record date shall be deemed to have initially designated the
        ninetieth (90th) day
        after such
        record date as the Expiration Date with respect thereto, subject to its right
        to
        change the Expiration Date as provided in this
        paragraph.  Notwithstanding the foregoing, no Expiration Date shall be
        later than the one hundred eightieth (180th) day
        after the
        applicable record date.

       

      SECTION
        1.5.  Notices,
        Etc. to Trustee and Company.

       

      Any
        request, demand, authorization, direction, notice, consent, waiver, Act of
        Holders, or other document provided or permitted by this Indenture to be
        made
        upon, given or furnished to, or filed with:

       

      (a)  the
        Trustee by any Holder, any holder of Preferred Securities or the Company
        shall
        be sufficient for every purpose hereunder if made, given, furnished or filed
        in
        writing to or with and received by the Trustee at its Corporate Trust Office,
        or

       

      (b)  the
        Company by the Trustee, any Holder or any holder of Preferred Securities
        shall
        be sufficient for every purpose hereunder if in writing and mailed, first
        class,
        postage prepaid, to the Company addressed to it at 8379 West Sunset Road,
        Las
        Vegas, Nevada 89113, Attention: Michael V. Shustek, Chief Executive Officer
        or
        at any other address previously furnished in writing to the Trustee by the
        Company.

       

      SECTION
        1.6.  Notice
        to Holders; Waiver.

       

      Where
        this Indenture provides for notice to Holders of any event, such notice shall
        be
        sufficiently given (unless otherwise herein expressly provided) if in writing
        and mailed, first class, postage prepaid, to each Holder affected by such
        event
        to the address of such Holder as it appears in the Securities Register, not
        later than the latest date (if any), and not earlier than the earliest date
        (if
        any), prescribed for the giving of such notice.  If, by reason of the
        suspension of or irregularities in regular mail service or for any other
        reason,
        it shall be impossible or impracticable to mail notice of any event to Holders
        when said notice is required to be given pursuant to any provision of this
        Indenture, then any manner of giving such notice as shall be satisfactory
        to the
        Trustee shall be deemed to be a sufficient giving of such notice.  In
        any case where notice to Holders is given by mail, neither the failure to
        mail
        such notice, nor any defect in any notice so mailed, to any particular Holder
        shall affect the sufficiency of such notice with respect to other
        Holders.  Where this Indenture provides for notice in any manner, such
        notice may be waived in writing by the Person entitled to receive such notice,
        either before or after the event, and such waiver shall be the equivalent
        of
        such notice.  Waivers of notice by Holders shall be filed with the
        Trustee, but such filing shall not be a condition precedent to the validity
        of
        any action taken in reliance upon such waiver.

       

      SECTION
        1.7.  Effect
        of Headings and Table of Contents.

       

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

       

      SECTION
        1.8.  Successors
        and Assigns.

       

      This
        Indenture shall be binding upon and shall inure to the benefit of any successor
        to the Company and the Trustee, including any successor by operation of
        law.  Except in connection with a transaction involving the Company
        that is permitted under Article VIII and pursuant to which the assignee
        agrees in writing to perform the Company’s obligations hereunder, the Company
        shall not assign its obligations hereunder.

       

      SECTION
        1.9.  Separability
        Clause.

       

      If
        any
        provision in this Indenture or in the Securities shall be invalid, illegal
        or
        unenforceable, the validity, legality and enforceability of the remaining
        provisions shall not in any way be affected or impaired thereby, and there
        shall
        be deemed substituted for the provision at issue a valid, legal and enforceable
        provision as similar as possible to the provision at issue.

       

      SECTION
        1.10.  Benefits
        of Indenture.

       

      Nothing
        in this Indenture or in the Securities, express or implied, shall give to
        any
        Person, other than the parties hereto and their successors and assigns, the
        holders of Senior Debt, the Holders of the Securities and, to the extent
        expressly provided in Sections 5.2, 5.8, 5.9, 5.11,
5.12, 5.13, 9.2 and 10.7, the holders
        of Preferred
        Securities, any benefit or any legal or equitable right, remedy or claim
        under
        this Indenture.

       

      SECTION
        1.11.  Governing
        Law.

       

      This
        Indenture and the rights and obligations of each of the Holders, the Company
        and
        the Trustee shall be construed and enforced in accordance with and governed
        by
        the laws of the State of New York without reference to its conflict of laws
        provisions (other than section 5-1401 of the General Obligations
        Law).

       

      SECTION
        1.12.  Submission
        to Jurisdiction.

       

      ANY
        LEGAL
        ACTION OR PROCEEDING BY OR AGAINST ANY PARTY HERETO OR WITH RESPECT TO OR
        ARISING OUT OF THIS INDENTURE MAY BE BROUGHT IN OR REMOVED TO THE COURTS
        OF THE
        STATE OF NEW YORK, IN AND FOR THE COUNTY OF NEW YORK, OR OF THE UNITED STATES
        OF
        AMERICA FOR THE SOUTHERN DISTRICT OF NEW YORK (IN EACH CASE SITTING IN THE
        BOROUGH OF MANHATTAN).  BY EXECUTION AND DELIVERY OF THIS INDENTURE,
        EACH PARTY ACCEPTS, FOR ITSELF AND IN RESPECT OF ITS PROPERTY, GENERALLY
        AND
        UNCONDITIONALLY, THE JURISDICTION OF THE AFORESAID COURTS (AND COURTS OF
        APPEALS
        THEREFROM) FOR LEGAL PROCEEDINGS ARISING OUT OF OR IN CONNECTION WITH THIS
        INDENTURE.

       

      SECTION
        1.13.  Non-Business
        Days.

       

      If
        any
        Interest Payment Date, Redemption Date or Stated Maturity of any Security
        shall
        not be a Business Day, then (notwithstanding any other provision of this
        Indenture or the Securities) payment of interest, premium, if any, or principal
        or other amounts in respect of such Security shall not be made on such date,
        but
        shall be made on the next succeeding Business Day (and no interest shall
        accrue
        in respect of the amounts whose payment is so delayed for the period from
        and
        after such Interest Payment Date, Redemption Date or Stated Maturity, as
        the
        case may be, until such next succeeding Business Day) except that, if such
        Business Day falls in the next succeeding calendar year, such payment shall
        be
        made on the immediately preceding Business Day, in each case with the same
        force
        and effect as if made on the Interest Payment Date or Redemption Date or
        at the
        Stated Maturity.

       

       

      ARTICLE
        II

       

       

      

       

       

      Security
        Forms

       

      SECTION
        2.1.  Form
        of Security.

       

      Any
        Security issued hereunder shall be in substantially the following
        form:

       

      VESTIN
        REALTY MORTGAGE II, INC.

       

      Junior
        Subordinated Note due 2020

       

      No.  _____________ $60,100,000.00

       

      Vestin
        Realty Mortgage II, Inc., a corporation organized and existing under the
        laws of
        Maryland (hereinafter called the “Company,” which term includes any
        successor Person under the Indenture hereinafter referred to), for value
        received, hereby promises to pay to The Bank of New York Trust Company, National
        Association, not in its individual capacity, but solely as Property Trustee
        for
        Vestin II Capital Trust I, or registered assigns, the principal sum of Sixty
        Million One Hundred Thousand Dollars ($60,100,000.00) [if
        the Security is a Global Security, then insert— or such other principal
        amount represented hereby as may be set forth in the records of the Securities
        Registrar hereinafter referred to in accordance with the
        Indenture] on July 30, 2020.  The Company further
        promises to pay interest on said principal sum from June 22, 2007, or from
        the
        most recent Interest Payment Date to which interest has been paid or duly
        provided for, quarterly in arrears on January 30, April 30, July 30 and October
        30 of each year, commencing July 30, 2007, or if any such day is not a Business
        Day, on the next succeeding Business Day (and no interest shall accrue in
        respect of the amounts whose payment is so delayed for the period from and
        after
        such Interest Payment Date until such next succeeding Business Day), except
        that, if such Business Day falls in the next succeeding calendar year, such
        payment shall be made on the immediately preceding Business Day, in each
        case,
        with the same force and effect as if made on the Interest Payment Date, at
        a
        fixed rate equal to 8.75% per annum through the interest payment date in
        July
        2012 (“Fixed Rate Period”) and thereafter at a
        variable rate equal to LIBOR plus 3.50% per annum, together with Additional
        Tax
        Sums, if any, as provided in Section 10.5 of the Indenture, until the
        principal hereof is paid or duly provided for or made available for payment;
        provided, further, that any overdue principal, premium, if
        any, or Additional Tax Sums and any overdue installment of interest shall
        bear
        Additional Interest at a fixed rate equal to 8.75% per annum during the Fixed
        Rate Period and thereafter at a variable rate equal to LIBOR plus 3.50% per
        annum (to the extent that the payment of such interest shall be legally
        enforceable), compounded quarterly, from the dates such amounts are due until
        they are paid or made available for payment, and such interest shall be payable
        on demand.

       

      During
        the Fixed Rate Period, the amount of interest payable shall be computed on
        the
        basis of a 360-day year of twelve 30-day months and the amount payable for
        any
        partial period shall be computed on the basis of the number of days elapsed
        in a
        360-day year of twelve 30-day months.  Upon expiration of the Fixed
        Rate Period, the amount of interest payable for any interest payment period
        will
        be computed on the basis of a 360-day year and the actual number of days
        elapsed
        in the relevant interest period. The interest so payable,
        and punctually paid or duly provided for, on any Interest Payment Date shall,
        as
        provided in the Indenture, be paid to the Person in whose name this Security
        (or
        one or more Predecessor Securities) is registered at the close of business
        on
        the Regular Record Date for such interest installment.  Any such
        interest not so punctually paid or duly provided for shall forthwith cease
        to be
        payable to the Holder on such Regular Record Date and may either be paid
        to the
        Person in whose name this Security (or one or more Predecessor Securities)
        is
        registered at the close of business on a Special Record Date for the payment
        of
        such Defaulted Interest to be fixed by the Trustee, notice whereof shall
        be
        given to Holders of Securities not less than ten (10) days prior to such
        Special
        Record Date, or be paid at any time in any other lawful manner not inconsistent
        with the requirements of any securities exchange on which the Securities
        may be
        listed, and upon such notice as may be required by such exchange, all as
        more
        fully provided in the Indenture.

       

      Payment
        of principal of, premium, if any, and interest on this Security shall be
        made 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.  Payments of
        principal, premium, if any, and interest due at the Maturity of this Security
        shall be made at the Place of Payment upon surrender of such Securities to
        the
        Paying Agent, and payments of interest shall be made, subject to such surrender
        where applicable, by wire transfer at such place and to such account at a
        banking institution in the United States as may be designated in writing
        to the
        Paying Agent at least ten (10) Business Days prior to the date for payment
        by
        the Person entitled thereto unless proper written transfer instructions have
        not
        been received by the relevant record date, in which case such payments shall
        be
        made by check mailed to the address of such Person as such address shall
        appear
        in the Security Register.  Notwithstanding the foregoing, so long as
        the Holder of this Security is the Property Trustee, the payment of the
        principal of (and premium, if any) and interest (including any overdue
        installment of interest and Additional Tax Sums, if any) on this Security
        will
        be made at such place and to such account as may be designated by the Property
        Trustee.

       

      The
        indebtedness evidenced by this Security is, to the extent provided in the
        Indenture, subordinate and junior in right of payment to the prior payment
        in
        full of all Senior Debt, and this Security is issued subject to the provisions
        of the Indenture with respect thereto.  Each Holder of this Security,
        by accepting the same, (a) agrees to and shall be bound by such provisions,
        (b)
        authorizes and directs the Trustee on his or her behalf to take such actions
        as
        may be necessary or appropriate to effectuate the subordination so provided
        and
        (c) appoints the Trustee his or her attorney-in-fact for any and all such
        purposes.  Each Holder hereof, by his or her acceptance hereof, waives
        all notice of the acceptance of the subordination provisions contained herein
        and in the Indenture by each holder of Senior Debt, whether now outstanding
        or
        hereafter incurred, and waives reliance by each such holder upon said
        provisions.

       

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

       

      [FORM
        OF REVERSE OF SECURITY]

       

      This
        Security is one of a duly authorized issue of securities of the Company (the
        “Securities”) issued under the Junior Subordinated Indenture, dated as
        of June 22, 2007 (the “Indenture”), between the Company and The Bank of
        New York Trust Company, National Association, as Trustee (in such capacity,
        the
“Trustee,” which term includes any successor trustee under the
        Indenture), to which Indenture and all indentures supplemental thereto reference
        is hereby made for a statement of the respective rights, limitations of rights,
        duties and immunities thereunder of the Company, the Trustee, the holders
        of
        Senior Debt, the Holders of the Securities and the holders of the Preferred
        Securities, and of the terms upon which the Securities are, and are to be,
        authenticated and delivered.

       

      All
        terms
        used in this Security that are defined in the Indenture or in the Amended
        and
        Restated Trust Agreement, dated as of June 22, 2007 (as modified, amended
        or
        supplemented from time to time, the “Trust Agreement”), relating to
        Vestin II Capital Trust I (the “Trust”) among the Company, as
        Depositor, the Trustees named therein and the Holders from time to time of
        the
        Trust Securities issued pursuant thereto, shall have the meanings assigned
        to
        them in the Indenture or the Trust Agreement, as the case may be.

       

      The
        Company may, on any Interest Payment Date, at its option, upon not less than
        thirty (30) days’ nor more than sixty (60) days’ written notice to the Holders
        of the Securities (unless a shorter notice period shall be satisfactory to
        the
        Trustee) on or after July 30, 2012 and subject to the terms and conditions
        of
Article XI of the Indenture, redeem this Security in whole at any time or
        in part from time to time at a Redemption Price equal to one hundred percent
        (100%) of the principal amount hereof, together, in the case of any such
        redemption, with accrued interest, including any Additional Interest, through
        but excluding the date fixed as the Redemption Date and, if such redemption
        shall occur prior to the expiration of the Fixed Rate Period, Breakage Costs,
        if
        any, less Breakage Gains, if any.

       

      In
        addition, upon the occurrence and during the continuation of a Special Event,
        the Company may, at its option, upon not less than thirty (30) days’ nor more
        than sixty (60) days’ written notice to the Holders of the Securities (unless a
        shorter notice period shall be satisfactory to the Trustee), redeem this
        Security, in whole but not in part, subject to the terms and conditions of
        Article XI of the Indenture at a Redemption Price equal to one hundred
        seven and one half percent (107.5%) of the principal amount hereof, together,
        in
        the case of any such redemption, with accrued interest, including any Additional
        Interest, through but excluding the date fixed as the Redemption
        Date.

       

      Further,
        the Company shall, upon receipt of a Change of Control Election with respect
        to
        a Change of Control which occurs after the Interest Payment Date in July
        2012,
        redeem the Securities in whole on a date no more than thirty (30) days after
        receipt of the Change of Control Election, at a Redemption Price equal to
        one
        hundred percent (100%) of the principal amount thereof, together, in the
        case of
        any such redemption, with accrued and unpaid interest, including any Additional
        Interest, to but excluding the date fixed as the Redemption Date and, if
        such
        redemption shall occur prior to the expiration of the Fixed Rate Period,
        Breakage Costs, if any, less Breakage Gains, if any.

       

      In
        the
        event of redemption of this Security in part only, a new Security or Securities
        for the unredeemed portion hereof will be issued in the name of the Holder
        hereof upon the cancellation hereof.  If less than all the Securities
        are to be redeemed, the particular Securities to be redeemed shall be selected
        not more than sixty (60) days prior to the Redemption Date by the Trustee
        from
        the Outstanding Securities not previously called for redemption, by such
        method
        as the Trustee shall deem fair and appropriate and which may provide for
        the
        selection for redemption of a portion of the principal amount of any
        Security.

       

      The
        Indenture permits, with certain exceptions as therein provided, the Company
        and
        the Trustee at any time to enter into a supplemental indenture or indentures
        for
        the purpose of modifying in any manner the rights and obligations of the
        Company
        and of the Holders of the Securities, with the consent of the Holders of
        not
        less than a majority in principal amount of the Outstanding
        Securities.  The Indenture also contains provisions permitting Holders
        of specified percentages in principal amount of the Securities, on behalf
        of the
        Holders of all Securities, to waive compliance by the Company with certain
        provisions of the Indenture and certain past defaults under the Indenture
        and
        their consequences.  Any such consent or waiver by the Holder of this
        Security shall be conclusive and binding upon such Holder and upon all future
        Holders of this Security and of any Security issued upon the registration
        of
        transfer hereof or in exchange herefor or in lieu hereof, whether or not
        notation of such consent or waiver is made upon this Security.

       

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

       

      As
        provided in the Indenture and subject to certain limitations therein set
        forth,
        the transfer of this Security is restricted to transfers to (i) the Company,
        (ii) “Qualified Institutional Buyers” (as defined in Rule 144A under the
        Securities Act of 1933, as amended (the “Securities Act”)) who are also
“Qualified Purchasers” (as such term is defined in the Investment Company Act of
        1940, as amended), (iii) certain Non-U.S. persons outside the United States
        in
        an offshore transaction in accordance with Regulation S under the Securities
        Act
        and in accordance with any other applicable law, (iv) pursuant to an effective
        registration statement under the Securities Act or (v) pursuant to another
        exemption from registration under the Securities Act and is registrable in
        the
        Securities Register, upon surrender of this Security for registration of
        transfer at the office or agency of the Company maintained for such purpose,
        duly endorsed by, or accompanied by a written instrument of transfer in form
        satisfactory to the Company and the Securities Registrar and duly executed
        by,
        the Holder hereof or such Holder’s attorney duly authorized in writing, and
        thereupon one or more new Securities, of like tenor, of authorized denominations
        and for the same aggregate principal amount, will be issued to the designated
        transferee or transferees.

       

      The
        Securities are issuable only in registered form without coupons in minimum
        denominations of $100,000 and any integral multiple of $1,000 in excess
        thereof.  As provided in the Indenture and subject to certain
        limitations therein set forth, Securities are exchangeable for a like aggregate
        principal amount of Securities and of like tenor of a different authorized
        denomination, as requested by the Holder surrendering the same.

       

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

       

      The
        Company, the Trustee and any agent of the Company or the Trustee may treat
        the
        Person in whose name this Security is registered as the owner hereof for
        all
        purposes, whether or not this Security be overdue, and neither the Company,
        the
        Trustee nor any such agent shall be affected by notice to the
        contrary.

       

      The
        Company and, by its acceptance of this Security or a beneficial interest
        herein,
        the Holder of, and any Person that acquires a beneficial interest in, this
        Security agree that, for United States federal, state and local tax purposes,
        it
        is intended that this Security constitute indebtedness.

       

      This
        Security shall be construed and enforced in accordance with and governed
        by the
        laws of the State of New York, without reference to its conflict of laws
        provisions (other than section 5-1401 of the General Obligations
        Law).

       

      IN
        WITNESS WHEREOF, the Company has caused this instrument to be duly executed
        on
        this 22nd day
        of June, 2007.

       

      Vestin Realty Mortgage
        II, Inc.

       

      
        	
                 

              	
                By:____________________________________

              

      

       

      
        	
                 

              	
                Name:

              

      

       

      
        	
                 

              	
                Title:

              

      

       

      SECTION
        2.2.  Restricted
        Legend.

       

      (a)  Any
        Security issued hereunder shall bear a legend in substantially the following
        form:

       

      “[IF
        THIS SECURITY IS A GLOBAL SECURITY INSERT:  THIS SECURITY
        IS A GLOBAL SECURITY WITHIN THE MEANING OF THE INDENTURE HEREINAFTER REFERRED
        TO
        AND IS REGISTERED IN THE NAME OF THE DEPOSITORY TRUST COMPANY (“DTC”)
        OR A NOMINEE OF DTC.  THIS SECURITY IS EXCHANGEABLE FOR SECURITIES
        REGISTERED IN THE NAME OF A PERSON OTHER THAN DTC OR ITS NOMINEE ONLY IN
        THE
        LIMITED CIRCUMSTANCES DESCRIBED IN THE INDENTURE, AND NO TRANSFER OF THIS
        SECURITY (OTHER THAN A TRANSFER OF THIS SECURITY AS A WHOLE BY DTC TO A NOMINEE
        OF DTC OR BY A NOMINEE OF DTC TO DTC OR ANOTHER NOMINEE OF DTC) MAY BE
        REGISTERED EXCEPT IN LIMITED CIRCUMSTANCES.

       

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

       

      THE
        SECURITIES REPRESENTED BY THIS CERTIFICATE WERE ORIGINALLY ISSUED IN A
        TRANSACTION EXEMPT FROM REGISTRATION UNDER THE SECURITIES ACT OF 1933, AS
        AMENDED (THE “SECURITIES ACT”), AND SUCH SECURITIES, AND ANY INTEREST
        THEREIN, MAY NOT BE OFFERED, SOLD OR OTHERWISE TRANSFERRED IN THE ABSENCE
        OF
        SUCH REGISTRATION OR AN APPLICABLE EXEMPTION THEREFROM.  EACH
        PURCHASER OF ANY SECURITIES IS HEREBY NOTIFIED THAT THE SELLER OF THE SECURITIES
        MAY BE RELYING ON THE EXEMPTION FROM THE PROVISIONS OF SECTION 5 OF THE
        SECURITIES ACT PROVIDED BY RULE 144A UNDER THE SECURITIES ACT.

       

      THE
        HOLDER OF THE SECURITIES REPRESENTED BY THIS CERTIFICATE AGREES FOR THE BENEFIT
        OF THE COMPANY THAT (A) SUCH SECURITIES MAY BE OFFERED, RESOLD OR OTHERWISE
        TRANSFERRED ONLY (I) TO THE COMPANY, (II) TO A PERSON WHOM THE SELLER REASONABLY
        BELIEVES IS A “QUALIFIED INSTITUTIONAL BUYER” (AS DEFINED IN RULE 144A OF THE
        SECURITIES ACT) AND A “QUALIFIED PURCHASER” (AS DEFINED IN SECTION 2(a)(51) OF
        THE INVESTMENT COMPANY ACT OF 1940, AS AMENDED), (III) TO CERTAIN NON-U.S.
        PERSONS OUTSIDE THE UNITED STATES IN AN OFFSHORE TRANSACTION IN ACCORDANCE
        WITH
        REGULATION S UNDER THE SECURITIES ACT AND IN ACCORDANCE WITH ANY OTHER
        APPLICABLE LAW, (IV) PURSUANT TO AN EFFECTIVE REGISTRATION STATEMENT UNDER
        THE
        SECURITIES ACT, OR (V) PURSUANT TO ANOTHER EXEMPTION FROM REGISTRATION UNDER
        THE
        SECURITIES ACT, AND (B) THE HOLDER WILL NOTIFY ANY PURCHASER OF ANY SECURITIES
        FROM IT OF THE RESALE RESTRICTIONS REFERRED TO IN (A) ABOVE.

       

      THE
        SECURITIES WILL BE ISSUED AND MAY BE TRANSFERRED ONLY IN BLOCKS HAVING AN
        AGGREGATE PRINCIPAL AMOUNT OF NOT LESS THAN $100,000.  TO THE FULLEST
        EXTENT PERMITTED BY LAW, ANY ATTEMPTED TRANSFER OF SECURITIES, OR ANY INTEREST
        THEREIN, IN A BLOCK HAVING AN AGGREGATE PRINCIPAL AMOUNT OF LESS THAN $100,000
        AND INTEGRAL MULTIPLES OF $1,000 IN EXCESS THEREOF SHALL BE DEEMED TO BE
        VOID
        AND OF NO LEGAL EFFECT WHATSOEVER.  TO THE FULLEST EXTENT PERMITTED BY
        LAW, ANY SUCH PURPORTED TRANSFEREE SHALL BE DEEMED NOT TO BE THE HOLDER OF
        SUCH
        SECURITIES FOR ANY PURPOSE, INCLUDING, BUT NOT LIMITED TO, THE RECEIPT OF
        PRINCIPAL OF OR INTEREST ON SUCH SECURITIES, OR ANY INTEREST THEREIN, AND
        SUCH
        PURPORTED TRANSFEREE SHALL BE DEEMED TO HAVE NO INTEREST WHATSOEVER IN SUCH
        SECURITIES.

       

      THE
        HOLDER OF THIS SECURITY, OR ANY INTEREST THEREIN, BY ITS ACCEPTANCE HEREOF
        OR
        THEREOF ALSO AGREES, REPRESENTS AND WARRANTS THAT IT IS NOT AN EMPLOYEE BENEFIT
        PLAN, INDIVIDUAL RETIREMENT ACCOUNT OR OTHER PLAN OR ARRANGEMENT SUBJECT
        TO
        TITLE I OF THE EMPLOYEE RETIREMENT INCOME SECURITY ACT OF 1974, AS AMENDED
        (“ERISA”), OR SECTION 4975 OF THE INTERNAL REVENUE CODE OF 1986, AS
        AMENDED (THE “CODE”) (EACH A “PLAN”), OR AN ENTITY WHOSE
        UNDERLYING ASSETS INCLUDE “PLAN ASSETS” BY REASON OF ANY PLAN’S INVESTMENT IN
        THE ENTITY, AND NO PERSON INVESTING “PLAN ASSETS” OF ANY PLAN MAY ACQUIRE OR
        HOLD THIS SECURITY OR ANY INTEREST THEREIN.  ANY PURCHASER OR HOLDER
        OF THE SECURITIES OR ANY INTEREST THEREIN WILL BE DEEMED TO HAVE REPRESENTED
        BY
        ITS PURCHASE AND HOLDING THEREOF THAT (A) IT IS NOT AN “EMPLOYEE BENEFIT PLAN”
WITHIN THE MEANING OF SECTION 3(3) OF ERISA, WHICH IS SUBJECT TO TITLE I
        OF
        ERISA, OR A PLAN TO WHICH SECTION 4975 OF THE CODE IS APPLICABLE, A TRUSTEE
        OR
        OTHER PERSON ACTING ON BEHALF OF AN EMPLOYEE BENEFIT PLAN OR PLAN, OR ANY
        OTHER
        PERSON OR ENTITY USING THE ASSETS OF ANY EMPLOYEE BENEFIT PLAN OR PLAN TO
        FINANCE SUCH PURCHASE AND (B) ITS PURCHASE AND OWNERSHIP OF SUCH SECURITY
        WILL
        NOT RESULT IN A NON-EXEMPT PROHIBITED TRANSACTION UNDER SECTION 406 OF ERISA
        OR
        SECTION 4975 OF THE CODE (OR, IN THE CASE OF A GOVERNMENTAL PLAN, ANY
        SUBSTANTIALLY SIMILAR APPLICABLE LAW).”

       

      (b)  The
        above
        legends shall not be removed from any Security unless there is delivered
        to the
        Company satisfactory evidence, which may include an Opinion of Counsel, as
        may
        be reasonably required to ensure that any future transfers thereof may be
        made
        without restriction under or violation of the provisions of the Securities
        Act
        and other applicable law.  Upon provision of such satisfactory
        evidence, the Company shall execute and deliver to the Trustee, and the Trustee
        shall deliver, upon receipt of a Company Order directing it to do so, a Security
        that does not bear the legend.

       

      SECTION
        2.3.  Form
        of Trustee’s Certificate of Authentication.

       

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

       

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

       

      
        	
                Dated:

              	
                By:  __________________________________

              

      

       

      
        	
                 

              	
                Authenticating
                  Agent

              

      

       

      By:  __________________________________

       

      Authorized
        Signatory

       

      

      SECTION
        2.4.  Temporary
        Securities.

       

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

       

      (b)  If
        temporary Securities are issued, the Company will cause definitive Securities
        to
        be prepared without unreasonable delay.  After the preparation of
        definitive Securities, the temporary Securities shall be exchangeable for
        definitive Securities upon surrender of the temporary Securities at the office
        or agency of the Company designated for that purpose without charge to the
        Holder.  Upon surrender for cancellation of any one or more temporary
        Securities, the Company shall execute and the Trustee shall authenticate
        and
        deliver in exchange therefor one or more definitive Securities of any authorized
        denominations having the same Original Issue Date and Stated Maturity and
        having
        the same terms as such temporary Securities.  Until so exchanged, the
        temporary Securities shall in all respects be entitled to the same benefits
        under this Indenture as definitive Securities.

       

      SECTION
        2.5.  Definitive
        Securities.

       

      The
        Securities issued on the Original Issue Date shall be in definitive
        form.  The definitive Securities shall be printed, lithographed or
        engraved, or produced by any combination of these methods, if required by
        any
        securities exchange on which the Securities may be listed, on a steel engraved
        border or steel engraved borders or may be produced in any other manner
        permitted by the rules of any securities exchange on which the Securities
        may be
        listed, all as determined by the officers executing such Securities, as
        evidenced by their execution of such Securities.

       

       

      ARTICLE
        III

       

       

      

       

       

      The
        Securities

       

      SECTION
        3.1.  Payment
        of Principal and Interest.

       

      (a)  The
        unpaid principal amount of the Securities shall bear interest at a fixed
        rate
        equal to 8.75% per annum through the interest payment date in July 2012 and
        thereafter at a variable rate of LIBOR plus 3.50% per annum until paid or
        duly
        provided for, such interest to accrue from the Original Issue Date or from
        the
        most recent Interest Payment Date to which interest has been paid or duly
        provided for, and any overdue principal, premium, if any, or Additional Tax
        Sums
        and any overdue installment of interest shall bear Additional Interest at
        the
        rate equal to a fixed rate equal to 8.75% per annum through the interest
        payment
        date in July 2012 and thereafter at
        a variable rate of LIBOR plus
        3.50% per annum compounded quarterly from the dates such
        amounts are due until they are paid or funds for the payment thereof are
        made
        available for payment.  If the Company prepays the principal amount of
        the Securities prior to the expiration of the Fixed Rate Period, the Company
        shall pay to the applicable Holders all Breakage Costs, less Breakage Gains,
        resulting from such prepayment.

       

      (b)  Interest
        and Additional Interest on any Security that is payable, and is punctually
        paid
        or duly provided for, on any Interest Payment Date shall be paid to the Person
        in whose name that Security (or one or more Predecessor Securities) is
        registered at the close of business on the Regular Record Date for such
        interest, except that interest and any Additional Interest payable on the
        Stated
        Maturity (or any date of principal repayment upon early maturity) of the
        principal of a Security or on a Redemption Date shall be paid to the Person
        to
        whom principal is paid.  The initial payment of interest on any
        Security that is issued between a Regular Record Date and the related Interest
        Payment Date shall be payable as provided in such Security.

       

      (c)  Any
        interest on any Security that is due and payable, but is not timely paid
        or duly
        provided for, on any Interest Payment Date for Securities (herein called
        “Defaulted Interest”) shall forthwith cease to be payable to the
        registered Holder on the relevant Regular Record Date by virtue of having
        been
        such Holder, and such Defaulted Interest may be paid by the Company, at its
        election in each case, as provided in paragraph (i) or (ii) below:

       

      (i)  The
        Company may elect to make payment of any Defaulted Interest to the Persons
        in
        whose names the Securities (or their respective Predecessor Securities) are
        registered at the close of business on a special record date for the payment
        of
        such Defaulted Interest (a “Special Record Date”), which shall be fixed
        in the following manner.  At least thirty (30) days prior to the date
        of the proposed payment, the Company shall notify the Trustee in writing
        of the
        amount of Defaulted Interest proposed to be paid on each Security and the
        date
        of the proposed payment, and at the same time the Company shall deposit with
        the
        Trustee an amount of money equal to the aggregate amount proposed to be paid
        in
        respect of such Defaulted Interest or shall make arrangements satisfactory
        to
        the Trustee for such deposit prior to the date of the proposed payment, such
        money when deposited to be held in trust for the benefit of the Persons entitled
        to such Defaulted Interest.  Thereupon the Trustee shall fix a Special
        Record Date for the payment of such Defaulted Interest, which shall be not
        more
        than fifteen (15) days and not less than ten (10) days prior to the date
        of the
        proposed payment and not less than ten (10) days after the receipt by the
        Trustee of the notice of the proposed payment.  The Trustee shall
        promptly notify the Company of such Special Record Date and, in the name
        and at
        the expense of the Company, shall cause notice of the proposed payment of
        such
        Defaulted Interest and the Special Record Date therefor to be mailed, first
        class, postage prepaid, to each Holder of a Security at the address of such
        Holder as it appears in the Securities Register not less than ten (10) days
        prior to such Special Record Date.  Notice of the proposed payment of
        such Defaulted Interest and the Special Record Date therefor having been
        so
        mailed, such Defaulted Interest shall be paid to the Persons in whose names
        the
        Securities (or their respective Predecessor Securities) are registered on
        such
        Special Record Date; or

       

      (ii)  The
        Company may make payment of any Defaulted Interest in any other lawful manner
        not inconsistent with the requirements of any securities exchange or automated
        quotation system on which the Securities may be listed, traded or quoted
        and,
        upon such notice as may be required by such exchange or automated quotation
        system (or by the Trustee if the Securities are not listed), if, after notice
        given by the Company to the Trustee of the proposed payment pursuant to this
        clause, such payment shall be deemed practicable by the Trustee.

       

      (d)  Payments
        of interest on the Securities shall include interest accrued to but excluding
        the respective Interest Payment Dates.  During the Fixed Rate Period,
        the amount of interest payable shall be computed on the basis of a 360-day
        year
        of twelve 30-day months and the amount payable for any partial period shall
        be
        computed on the basis of the number of days elapsed in a 360-day year of
        twelve
        30-day months.  Upon expiration of the Fixed Rate Period, the amount
        of interest payable for any interest payment period will be computed on the
        basis of a 360-day year and the actual number of days elapsed in the relevant
        interest period.

       

      (e)  Payment
        of principal of, premium, if any, and interest on the Securities shall be
        made
        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.  Payments of principal, premium, if any, and interest due at
        the Maturity of such Securities shall be made at the Place of Payment upon
        surrender of such Securities to the Paying Agent and payments of interest
        shall
        be made subject to such surrender where applicable, by wire transfer at such
        place and to such account at a banking institution in the United States as
        may
        be designated in writing to the Paying Agent at least ten (10) Business Days
        prior to the date for payment by the Person entitled thereto unless proper
        written transfer instructions have not been received by the relevant record
        date, in which case such payments shall be made by check mailed to the address
        of such Person as such address shall appear in the Security
        Register.  Notwithstanding the foregoing, so long as the holder of
        this Security is the Property Trustee, the payment of the principal of (and
        premium, if any) and interest (including any overdue installment of interest
        and
        Additional Tax Sums, if any) on this Security will be made at such place
        and to
        such account as may be designated by the Property Trustee.

       

      (f)  The
        parties hereto acknowledge and agree that the holders of the Preferred
        Securities have certain rights to direct the Company to modify the Interest
        Payment Dates and corresponding Redemption Date and Stated Maturity of the
        Securities or a portion of the Securities pursuant to the Purchase
        Agreement.  In the event any such modifications are made to the
        Securities or a portion of the Securities, appropriate changes to the form
        of
        Security set forth in Article II hereof shall be made prior to the
        issuance and authentication of new or replacement Securities.  Any
        such modification of the Interest Payment Date and corresponding Redemption
        Date
        and Stated Maturity with respect to any Securities or tranche of Securities
        shall not require or be subject to the consent of the Trustee.

       

      (g)  Subject
        to the foregoing provisions of this Section 3.1, each Security delivered
        under this Indenture upon transfer of or in exchange for or in lieu of any
        other
        Security shall carry the rights to interest accrued and unpaid, and to accrue,
        that were carried by such other Security.

       

      SECTION
        3.2.  Denominations.

       

      The
        Securities shall be in registered form without coupons and shall be issuable
        in
        minimum denominations of $100,000 and any integral multiple of $1,000 in
        excess
        thereof.

       

      SECTION
        3.3.  Execution,
        Authentication, Delivery and Dating.

       

      (a)  At
        any
        time and from time to time after the execution and delivery of this Indenture,
        the Company may deliver Securities in an aggregate principal amount (including
        all then Outstanding Securities) not in excess of Sixty Million One Hundred
        Thousand Dollars ($60,100,000.00) executed by the Company to the Trustee
        for
        authentication, together with a Company Order for the authentication and
        delivery of such Securities, and the Trustee in accordance with the Company
        Order shall authenticate and deliver such Securities.  In
        authenticating such Securities, and accepting the additional responsibilities
        under this Indenture in relation to such Securities, the Trustee shall be
        entitled to receive, and shall be fully protected in relying upon:

       

      (i)  a
        copy of
        any Board Resolution relating thereto; and

       

      (ii)  an
        Opinion of Counsel stating that:  (1) such Securities, when
        authenticated and delivered by the Trustee and issued by the Company in the
        manner and subject to any conditions specified in such Opinion of Counsel,
        will
        constitute, and the Indenture constitutes, valid and legally binding obligations
        of the Company, each enforceable in accordance with its terms, subject to
        bankruptcy, insolvency, fraudulent transfer, reorganization, moratorium and
        similar laws of general applicability relating to or affecting creditors’ rights
        and to general equity principles; (2) the Securities have been duly authorized
        and executed by the Company and have been delivered to the Trustee for
        authentication in accordance with this Indenture; (3) the Securities are
        not
        required to be registered under the Securities Act; and (4) the Indenture
        is not
        required to be qualified under the Trust Indenture Act of 1939, as
        amended.

       

      (b)  The
        Securities shall be executed on behalf of the Company by its Chairman of
        the
        Board, its Vice Chairman of the Board, its Chief Executive Officer, its
        President or one of its Vice Presidents.  The signature of any of
        these officers on the Securities may be manual or
        facsimile.  Securities bearing the manual or facsimile signatures of
        individuals who were at any time the proper officers of the Company shall
        bind
        the Company, notwithstanding that such individuals or any of them have ceased
        to
        hold such offices prior to the authentication and delivery of such Securities
        or
        did not hold such offices at the date of such Securities.

       

      (c)  No
        Security shall be entitled to any benefit under this Indenture or be valid
        or
        obligatory for any purpose, unless there appears on such Security a certificate
        of authentication substantially in the form provided for herein executed
        by the
        Trustee by the manual signature of one of its authorized signatories, and
        such
        certificate upon any Security shall be conclusive evidence, and the only
        evidence, that such Security has been duly authenticated and delivered
        hereunder.  Notwithstanding the foregoing, if any Security shall have
        been authenticated and delivered hereunder but never issued and sold by the
        Company, and the Company shall deliver such Security to the Trustee for
        cancellation as provided in Section 3.8, for all purposes of this
        Indenture such Security shall be deemed never to have been authenticated
        and
        delivered hereunder and shall never be entitled to the benefits of this
        Indenture.

       

      (d)  Each
        Security shall be dated the date of its authentication.

       

      SECTION
        3.4.  Global
        Securities.

       

      (a)  Upon
        the
        election of the Holder after the Original Issue Date, which election need
        not be
        in writing, the Securities owned by such Holder shall be issued in the form
        of
        one or more Global Securities registered in the name of the Depositary or
        its
        nominee.  Each Global Security issued under this Indenture shall be
        registered in the name of the Depositary designated by the Company for such
        Global Security or a nominee thereof and delivered to such Depositary or
        a
        nominee thereof or custodian therefor, and each such Global Security shall
        constitute a single Security for all purposes of this Indenture.

       

      (b)  Notwithstanding
        any other provision in this Indenture, no Global Security may be exchanged
        in
        whole or in part for registered Securities, and no transfer of a Global Security
        in whole or in part may be registered in the name of any Person other than
        the
        Depositary for such Global Security or a nominee thereof, unless (i) such
        Depositary advises the Trustee and the Company in writing that such Depositary
        is no longer willing or able to properly discharge its responsibilities as
        Depositary with respect to such Global Security, and no qualified successor
        is
        appointed by the Company within ninety (90) days of receipt by the Company
        of
        such notice, (ii) such Depositary ceases to be a clearing agency registered
        under the Exchange Act and no successor is appointed by the Company within
        ninety (90) days after obtaining knowledge of such event, (iii) the Company
        executes and delivers to the Trustee a Company Order stating that the Company
        elects to terminate the book-entry system through the Depositary or (iv)
        an
        Event of Default shall have occurred and be continuing.  Upon the
        occurrence of any event specified in clause (i), (ii), (iii) or (iv) above,
        the
        Trustee shall notify the Depositary and instruct the Depositary to notify
        all
        owners of beneficial interests in such Global Security of the occurrence
        of such
        event and of the availability of Securities to such owners of beneficial
        interests requesting the same.  The Trustee may conclusively rely, and
        be protected in relying, upon the written identification of the owners of
        beneficial interests furnished by the Depositary, and shall not be liable
        for
        any delay resulting from a delay by the Depositary.  Upon the issuance
        of such Securities and the registration in the Securities Register of such
        Securities in the names of the Holders of the beneficial interests therein,
        the
        Trustees shall recognize such holders of beneficial interests as
        Holders.

       

      (c)  If
        any
        Global Security is to be exchanged for other Securities or canceled in part,
        or
        if another Security is to be exchanged in whole or in part for a beneficial
        interest in any Global Security, then either (i) such Global Security shall
        be
        so surrendered for exchange or cancellation as provided in this Article
        III or (ii) the principal amount thereof shall be reduced or increased by
        an
        amount equal to (x) the portion thereof to be so exchanged or canceled, or
        (y)
        the principal amount of such other Security to be so exchanged for a beneficial
        interest therein, as the case may be, by means of an appropriate adjustment
        made
        on the records of the Securities Registrar, whereupon the Trustee, in accordance
        with the Applicable Depositary Procedures, shall instruct the Depositary
        or its
        authorized representative to make a corresponding adjustment to its
        records.  Upon any such surrender or adjustment of a Global Security
        by the Depositary, accompanied by registration instructions, the Company
        shall
        execute and the Trustee shall authenticate and deliver any Securities issuable
        in exchange for such Global Security (or any portion thereof) in accordance
        with
        the instructions of the Depositary.  The Trustee shall not be liable
        for any delay in delivery of such instructions and may conclusively rely
        on, and
        shall be fully protected in relying on, such instructions.

       

      (d)  Every
        Security authenticated and delivered upon registration of transfer of, or
        in
        exchange for or in lieu of, a Global Security or any portion thereof shall
        be
        authenticated and delivered in the form of, and shall be, a Global Security,
        unless such Security is registered in the name of a Person other than the
        Depositary for such Global Security or a nominee thereof.

       

      (e)  Securities
        distributed to holders of Book-Entry Preferred Securities (as defined in
        the
        applicable Trust Agreement) upon the dissolution of the Trust shall be
        distributed in the form of one or more Global Securities registered in the
        name
        of a Depositary or its nominee, and deposited with the Securities Registrar,
        as
        custodian for such Depositary, or with such Depositary, for credit by the
        Depositary to the respective accounts of the beneficial owners of the Securities
        represented thereby (or such other accounts as they may
        direct).  Securities distributed to holders of Preferred Securities
        other than Book-Entry Preferred Securities upon the dissolution of the Trust
        shall not be issued in the form of a Global Security or any other form intended
        to facilitate book-entry trading in beneficial interests in such
        Securities.

       

      (f)  The
        Depositary or its nominee, as the registered owner of a Global Security,
        shall
        be the Holder of such Global Security for all purposes under this Indenture
        and
        the Securities, and owners of beneficial interests in a Global Security shall
        hold such interests pursuant to the Applicable Depositary
        Procedures.  Accordingly, any such owner’s beneficial interest in a
        Global Security shall be shown only on, and the transfer of such interest
        shall
        be effected only through, records maintained by the Depositary or its nominee
        or
        its Depositary Participants.  The Securities Registrar and the Trustee
        shall be entitled to deal with the Depositary for all purposes of this Indenture
        relating to a Global Security (including the payment of principal and interest
        thereon and the giving of instructions or directions by owners of beneficial
        interests therein and the giving of notices) as the sole Holder of the Security
        and shall have no obligations to the owners of beneficial interests
        therein.  Neither the Trustee nor the Securities Registrar shall have
        any liability in respect of any transfers effected by the
        Depositary.

       

      (g)  The
        rights of owners of beneficial interests in a Global Security shall be exercised
        only through the Depositary and shall be limited to those established by
        law and
        agreements between such owners and the Depositary and/or its Depositary
        Participants.

       

      (h)  No
        holder
        of any beneficial interest in any Global Security held on its behalf by a
        Depositary shall have any rights under this Indenture with respect to such
        Global Security, and such Depositary may be treated by the Company, the Trustee
        and any agent of the Company or the Trustee as the owner of such Global Security
        for all purposes whatsoever.  None of the Company, the Trustee nor any
        agent of the Company or the Trustee will have any responsibility or liability
        for any aspect of the records relating to or payments made on account of
        beneficial ownership interests of a Global Security or maintaining, supervising
        or reviewing any records relating to such beneficial ownership
        interests.  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 a Depositary or impair, as between a Depositary and such holders
        of
        beneficial interests, the operation of customary practices governing the
        exercise of the rights of the Depositary (or its nominee) as Holder of any
        Security.

       

      SECTION
        3.5.  Registration,
        Transfer and Exchange Generally.

       

      (a)  The
        Trustee shall cause to be kept at the Corporate Trust Office a register (the
        “Securities Register”) in which the registrar and transfer agent with
        respect to the Securities (the “Securities Registrar”), subject to such
        reasonable regulations as it may prescribe, shall provide for the registration
        of Securities and of transfers and exchanges of Securities.  The
        Trustee shall at all times also be the Securities Registrar.  The
        provisions of Article VI shall apply to the Trustee in its role as
        Securities Registrar.

       

      (b)  Subject
        to compliance with Section 2.2(b), upon surrender for registration of
        transfer of any Security at the offices or agencies of the Company designated
        for that purpose the Company shall execute, and the Trustee shall authenticate
        and deliver, in the name of the designated transferee or transferees, one
        or
        more new Securities of any authorized denominations of like tenor and aggregate
        principal amount.

       

      (c)  At
        the
        option of the Holder, Securities may be exchanged for other Securities of
        any
        authorized denominations, of like tenor and aggregate principal amount, upon
        surrender of the Securities to be exchanged at such office or
        agency.  Whenever any Securities are so surrendered for exchange, the
        Company shall execute, and the Trustee shall authenticate and deliver, the
        Securities that the Holder making the exchange is entitled to
        receive.

       

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

       

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

       

      (f)  No
        service charge shall be made to a Holder for any transfer or exchange of
        Securities, but the Company may require payment of a sum sufficient to cover
        any
        tax or other governmental charge that may be imposed in connection with any
        transfer or exchange of Securities.

       

      (g)  Neither
        the Company nor the Trustee shall be required pursuant to the provisions
        of this
Section 3.5:  (i) to issue, register the transfer of or
        exchange any Security during a period beginning at the opening of business
        fifteen (15) days before the day of selection for redemption of Securities
        pursuant to Article XI and ending at the close of business on the day of
        mailing of the notice of redemption or (ii) to register the transfer of or
        exchange any Security so selected for redemption in whole or in part, except,
        in
        the case of any such Security to be redeemed in part, any portion thereof
        not to
        be redeemed.

       

      (h)  The
        Company shall designate an office or offices or agency or agencies where
        Securities may be surrendered for registration of transfer or
        exchange.  The Company initially designates the Corporate Trust Office
        as its office and agency for such purposes.  The Company shall give
        prompt written notice to the Trustee and to the Holders of any change in
        the
        location of any such office or agency.

       

      (i)  The
        Securities may only be transferred to (i) the Company, (ii) a “qualified
        institutional buyer” (as defined in Rule 144A of the Securities Act) who is also
        a “Qualified Purchaser” as such term is defined in Section 2(a)(51) of the
        Investment Company Act, (iii) certain non-U.S. persons outside the United
        States
        in an offshore transaction in accordance with Regulation S under the Securities
        Act and in accordance with any other applicable law, (iv) pursuant to an
        effective registration statement under the Securities Act or (v) pursuant
        to
        another exemption form registration under the Securities Act.

       

      (j)  Neither
        the Trustee nor the Securities Registrar shall be responsible for ascertaining
        whether any transfer hereunder complies with the registration provisions
        of or
        any exemptions from the Securities Act, applicable state securities laws
        or the
        applicable laws of any other jurisdiction, ERISA, the Code, or the Investment
        Company Act; provided, that if a certificate is specifically required
        by the express terms of this Section 3.5 to be delivered to the Trustee
        or the Securities Registrar by a Holder or transferee of a Security, the
        Trustee
        and the Securities Registrar shall be under a duty to receive and examine
        the
        same to determine whether or not the certificate substantially conforms on
        its
        face to the requirements of this Indenture and shall promptly notify the
        party
        delivering the same if such certificate does not comply with such
        terms.

       

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

       

      (a)  If
        any
        mutilated Security is surrendered to the Trustee together with such security
        or
        indemnity as may be required by the Trustee to save the Company and the Trustee
        harmless, the Company shall execute and the Trustee shall authenticate and
        deliver in exchange therefor a new Security of like tenor and aggregate
        principal amount and bearing a number not contemporaneously
        outstanding.

       

      (b)  If
        there
        shall be delivered to the Trustee (i) evidence to its satisfaction of the
        destruction, loss or theft of any Security and (ii) such security or indemnity
        as may be required by it to save each of the Company and the Trustee harmless,
        then, in the absence of notice to the Company or the Trustee that such Security
        has been acquired by a bona fide purchaser, the Company shall execute
        and upon its written request the Trustee shall authenticate and deliver,
        in lieu
        of any such destroyed, lost or stolen Security, a new Security of like tenor
        and
        aggregate principal amount as such destroyed, lost or stolen Security, and
        bearing a number not contemporaneously outstanding.

       

      (c)  If
        any
        such mutilated, destroyed, lost or stolen Security has become or is about
        to
        become due and payable, the Company in its discretion may, instead of issuing
        a
        new Security, pay such Security.

       

      (d)  Upon
        the
        issuance of any new Security under this Section 3.6, the Company may
        require the payment of a sum sufficient to cover any tax or other governmental
        charge that may be imposed in relation thereto and any other expenses (including
        the fees and expenses of the Trustee) connected therewith.

       

      (e)  Every
        new
        Security issued pursuant to this Section 3.6 in lieu of any mutilated,
        destroyed, lost or stolen Security shall constitute an original additional
        contractual obligation of the Company, whether or not the mutilated, destroyed,
        lost or stolen Security shall be at any time enforceable by anyone, and shall
        be
        entitled to all the benefits of this Indenture equally and proportionately
        with
        any and all other Securities duly issued hereunder.

       

      (f)  The
        provisions of this Section 3.6 are exclusive and shall preclude (to the
        extent lawful) all other rights and remedies with respect to the replacement
        or
        payment of mutilated, destroyed, lost or stolen Securities.

       

      SECTION
        3.7.  Persons
        Deemed Owners.

       

      The
        Company, the Trustee and any agent of the Company or the Trustee shall treat
        the
        Person in whose name any Security is registered as the owner of such Security
        for the purpose of receiving payment of principal of and any interest on
        such
        Security and for all other purposes whatsoever, and neither the Company,
        the
        Trustee nor any agent of the Company or the Trustee shall be affected by
        notice
        to the contrary.

       

      SECTION
        3.8.  Cancellation.

       

      All
        Securities surrendered for payment, redemption, transfer or exchange shall,
        if
        surrendered to any Person other than the Trustee, be delivered to the Trustee,
        and any such Securities and Securities surrendered directly to the Trustee
        for
        any such purpose shall be promptly canceled by it.  The Company may at
        any time deliver to the Trustee for cancellation any Securities previously
        authenticated and delivered hereunder that the Company may have acquired
        in any
        manner whatsoever, and all Securities so delivered shall be promptly canceled
        by
        the Trustee.  No Securities shall be authenticated in lieu of or in
        exchange for any Securities canceled as provided in this Section 3.8,
        except as expressly permitted by this Indenture.  All canceled
        Securities shall be retained or disposed of by the Trustee in accordance
        with
        its customary practices and the Trustee shall deliver to the Company a
        certificate of such disposition.

       

      SECTION
        3.9.  Reserved.

       

      SECTION
        3.10.  Reserved..

       

      SECTION
        3.11.  Agreed
        Tax Treatment.

       

      Each
        Security issued hereunder shall provide that the Company and, by its acceptance
        or acquisition of a Security or a beneficial interest therein, the Holder
        of,
        and any Person that acquires a direct or indirect beneficial interest in,
        such
        Security, intend and agree to treat such Security as indebtedness of the
        Company
        for United States Federal, state and local tax purposes and to treat the
        Preferred Securities (including but not limited to all payments and proceeds
        with respect to the Preferred Securities) as an undivided beneficial ownership
        interest in the Securities (and any other Trust property) (and payments and
        proceeds therefrom, respectively) for United States Federal, state and local
        tax
        purposes.  The provisions of this Indenture shall be interpreted to
        further this intention and agreement of the parties.

       

      SECTION
        3.12.  CUSIP
        Numbers.

       

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

       

       

      ARTICLE
        IV

       

       

      

       

       

      Satisfaction
        and Discharge

       

      SECTION
        4.1.  Satisfaction
        and Discharge of Indenture.

       

      This
        Indenture shall, upon Company Request, cease to be of further effect (except
        as
        to any surviving rights of registration of transfer or exchange of Securities
        herein expressly provided for and as otherwise provided in this Section
        4.1) and the Trustee, on demand of and at the expense of the Company, shall
        execute proper instruments acknowledging satisfaction and discharge of this
        Indenture, when

       

      (a)  either

       

      (i)  all
        Securities theretofore authenticated and delivered (other than (A) Securities
        that have been mutilated, destroyed, lost or stolen and that have been replaced
        or paid as provided in Section 3.6 and (B) Securities 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
        as provided in Section 10.2) have been delivered to the Trustee for
        cancellation; or

       

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

       

      (A)  have
        become due and payable, or

       

      (B)  will
        become due and payable at their Stated Maturity within one year of the date
        of
        deposit, or

       

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

       

      and
        the
        Company, in the case of subclause (ii)(A), (B) or (C) above, has deposited
        or
        caused to be deposited with the Trustee as trust funds in trust for such
        purpose
        (x) an amount in the currency or currencies in which the Securities are payable,
        (y) Government Obligations which through the scheduled payment of principal
        and
        interest in respect thereof in accordance with their terms will provide,
        not
        later than the due date of any payment, money in an amount or (z) a combination
        thereof, in each case sufficient, in the opinion of a nationally recognized
        firm
        of independent public accountants expressed in a written certification thereof
        delivered to the Trustee, to pay and discharge the entire indebtedness on
        such
        Securities not theretofore delivered to the Trustee for cancellation, for
        principal and any premium and interest (including any Additional Interest)
        to
        the date of such deposit (in the case of Securities that have become due
        and
        payable) or to the Stated Maturity (or any date of principal repayment upon
        early maturity) or Redemption Date, as the case may be;

       

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

       

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

       

      Notwithstanding
        the satisfaction and discharge of this Indenture, the obligations of the
        Company
        to the Trustee under Section 6.6, the obligations of the Company to any
        Authenticating Agent under Section 6.11 and, if money shall have been
        deposited with the Trustee pursuant to subclause (a)(ii) of this Section
        4.1, the obligations of the Trustee under Section 4.2 and Section
        10.2(d) shall survive.

      SECTION
        4.2.  Application
        of Trust Money.

       

      Subject
        to the provisions of Section 10.2(d), all money deposited with the
        Trustee pursuant to Section 4.1 shall be held in trust and applied by the
        Trustee, in accordance with the provisions of the Securities and this Indenture,
        to the payment in accordance with Section 3.1, either directly or through
        any Paying Agent as the Trustee may determine, to the Persons entitled thereto,
        of the principal and any premium and interest (including any Additional
        Interest) for the payment of which such money or obligations have been deposited
        with or received by the Trustee.  Moneys held by the Trustee under
        this Section 4.2 shall not be subject to the claims of holders of Senior
        Debt under Article XII.

       

       

      ARTICLE
        V

       

       

      

       

       

      Remedies

       

      SECTION
        5.1.  Events
        of Default.

       

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

       

      (a)  default
        in the payment of any interest upon any Security, including any Additional
        Interest in respect thereof, when it becomes due and payable, and continuance
        of
        such default for a period of thirty (30) days; or

       

      (b)  default
        in the payment of the principal of or any premium on any Security at its
        Maturity; or

       

      (c)  (i)
        default in the performance, or breach, of any covenant of the Company under
        Section 10.9 of this Indenture and continuance of such default or breach
        for a period of thirty (30) days after there has been given, by registered
        or
        certified mail, to the Company by the Trustee or to the Company and the Trustee
        by the Holders of at least twenty-five percent (25%) in aggregate principal
        amount of the Outstanding Securities a written notice specifying such default
        or
        breach and requiring it to be remedied and stating that such notice is a
“Notice
        of Default” hereunder, or (ii) default in the performance, or breach, of any
        covenant or warranty of the Company in this Indenture (other than a default
        in
        the performance, or breach, of any covenant contained in Section 10.9 of
        this Indenture, which shall be treated as described in clause (i) of this
        Section 5.1(c)) or the Purchase Agreement and continuance of such default
        or breach for a period of forty-five (45) days after there has been given,
        by
        registered or certified mail, to the Company by the Trustee or to the Company
        and the Trustee by the Holders of at least twenty-five percent (25%) in
        aggregate principal amount of the Outstanding Securities a written notice
        specifying such default or breach and requiring it to be remedied and stating
        that such notice is a “Notice of Default” hereunder;

       

      (d)  the
        entry
        by a court having jurisdiction in the premises of a decree or order adjudging
        the Company a bankrupt or insolvent, or approving as properly filed a petition
        seeking reorganization, arrangement, adjustment or composition of or in respect
        of the Company under any applicable Federal or state bankruptcy, insolvency,
        reorganization or other similar law, or appointing a custodian, receiver,
        liquidator, assignee, trustee, sequestrator or other similar official of
        the
        Company or of any substantial part of its property, or ordering the winding
        up
        or liquidation of its affairs, and the continuance of any such decree or
        order
        for relief or any such other decree or order unstayed and in effect for a
        period
        of sixty (60) consecutive days;

       

      (e)  the
        institution by the Company of proceedings to be adjudicated a bankrupt or
        insolvent, or the consent by the Company to the institution of bankruptcy
        or
        insolvency proceedings against it, or the filing by the Company of a petition
        or
        answer or consent seeking reorganization or relief under any applicable Federal
        or state bankruptcy, insolvency, reorganization or other similar law, or
        the
        consent by it to the filing of such petition or to the appointment of or
        taking
        possession by a custodian, receiver, liquidator, assignee, trustee, sequestrator
        or other similar official of the Company or of any substantial part of its
        property, or the making by it of an assignment for the benefit of creditors,
        or
        the admission by it in writing of its inability to pay its debts generally
        as
        they become due and its willingness to be adjudicated a bankrupt or insolvent,
        or the taking of corporate action by the Company in furtherance of any such
        action; or

       

      (f)  the
        Trust
        shall have voluntarily or involuntarily liquidated, dissolved, wound-up its
        business or otherwise terminated its existence, except in connection with
        (1) the distribution of the Securities to holders of the Preferred
        Securities in liquidation of their interests in the Trust, (2) the
        redemption of all of the outstanding Preferred Securities or (3) certain
        mergers, consolidations or amalgamations, each as and to the extent permitted
        by
        the Trust Agreement.

       

      SECTION
        5.2.  Acceleration
        of Maturity; Rescission and Annulment.

       

      (a)  If
        an
        Event of Default occurs and is continuing, then and in every such case the
        Trustee or the Holders of not less than twenty-five percent (25%) in aggregate
        principal amount of the Outstanding Securities may declare the principal
        amount
        of all the Securities to be due and payable immediately, by a notice in writing
        to the Company (and to the Trustee if given by Holders), provided, that
        if, upon an Event of Default, the Trustee or the Holders of not less than
        twenty-five percent (25%) in principal amount of the Outstanding Securities
        fail
        to declare the principal of all the Outstanding Securities to be immediately
        due
        and payable, the holders of at least twenty-five percent (25%) in aggregate
        Liquidation Amount of the Preferred Securities then outstanding shall have
        the
        right to make such declaration by a notice in writing to the Property Trustee,
        the Company and the Trustee; and upon any such declaration the principal
        amount
        of and the accrued interest (including any Additional Interest) on all the
        Securities shall become immediately due and payable.

       

      (b)  At
        any
        time after such a declaration of acceleration with respect to Securities
        has
        been made and before a judgment or decree for payment of the money due has
        been
        obtained by the Trustee as hereinafter provided in this Article V, the
        Holders of a majority in aggregate principal amount of the Outstanding
        Securities, by written notice to the Indenture Trustee, or the holders of
        a
        majority in aggregate Liquidation Amount of the Preferred Securities, by
        written
        notice to the Property Trustee, the Company and the Trustee, may rescind
        and
        annul such declaration and its consequences if:

       

      (i)  the
        Company has paid or deposited with the Trustee a sum sufficient to
        pay:

       

      (A)  all
        overdue installments of interest on all Securities,

       

      (B)  any
        accrued Additional Interest on all Securities,

       

      (C)  the
        principal of and any premium on any Securities that have become due otherwise
        than by such declaration of acceleration and interest (including any Additional
        Interest) thereon at the rate borne by the Securities, and

       

      (D)  all
        unpaid taxes and other sums paid or advanced by the Trustee hereunder and
        the
        reasonable compensation, expenses, disbursements and advances of the Trustee,
        the Property Trustee and their agents and counsel; and

       

      (ii)  the
        Trustee has determined that all Events of Default with respect to Securities,
        other than the non-payment of the principal of Securities that has become
        due
        solely by such acceleration, have been cured or waived as provided in Section
        5.13;

       

      provided,
        that if the Holders of such Securities fail to annul such declaration and
        waive
        such default, the holders of not less than a majority in aggregate Liquidation
        Amount of the Preferred Securities then outstanding shall also have the right
        to
        rescind and annul such declaration and its consequences by written notice
        to the
        Property Trustee, the Company and the Trustee, subject to the satisfaction
        of
        the conditions set forth in paragraph (b) of this Section
        5.2.  No such rescission shall affect any subsequent default or
        impair any right consequent thereon.

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

       

      (a)  The
        Company covenants that if:

       

      (i)  a
        default
        shall occur in respect of the payment of any installment of interest (including
        any Additional Interest) on any Security when such interest becomes due and
        payable and such default continues for a period of thirty (30) days,
        or

       

      (ii)  a
        default
        shall occur in respect of the payment of the principal of and any premium
        on any
        Security at the Maturity thereof,

       

      the
        Company will, upon demand of the Trustee, pay to the Trustee, for the benefit
        of
        the Holders of such Securities, the whole amount then due and payable on
        such
        Securities for principal and any premium and interest (including any Additional
        Interest) and, in addition thereto, all amounts owing the Trustee under
Section 6.6.

      (b)  If
        the
        Company fails to pay such amounts forthwith upon such demand, the Trustee,
        in
        its own name and as trustee of an express trust, may institute a judicial
        proceeding for the collection of the sums so due and unpaid, and (subject
        to the
        Trustee’s rights under this Indenture) may prosecute such proceeding to judgment
        or final decree, and may enforce the same against the Company or any other
        obligor upon such Securities and collect the moneys adjudged or decreed to
        be
        payable in the manner provided by law out of the property of the Company
        or any
        other obligor upon the Securities, wherever situated.

       

      (c)  If
        an
        Event of Default with respect to any Securities occurs and is continuing,
        the
        Trustee may in its discretion, if no direction by the applicable percentage
        of
        Holders of the Outstanding Securities is received by the Trustee, proceed
        to
        protect and enforce its rights and the rights of the Holders of such Securities
        by such appropriate judicial proceedings as the Trustee shall deem most
        effectual to protect and enforce any such rights, whether for the specific
        enforcement of any covenant or agreement in this Indenture or in aid of the
        exercise of any power granted herein, or to enforce any other proper
        remedy.

       

      SECTION
        5.4.  Trustee
        May File Proofs of Claim.

       

      In
        case
        of any receivership, insolvency, liquidation, bankruptcy, reorganization,
        arrangement, adjustment, composition or similar judicial proceeding relative
        to
        the Company (or any other obligor upon the Securities), its property or its
        creditors, the Trustee shall be entitled and empowered, by intervention in
        such
        proceeding or otherwise, to take any and all actions authorized hereunder
        in
        order to have claims of the Holders and the Trustee allowed in any such
        proceeding.  In particular, the Trustee shall be authorized to collect
        and receive any moneys or other property payable or deliverable on any such
        claims and to distribute the same; and any custodian, receiver, assignee,
        trustee, liquidator, sequestrator or other similar official in any such judicial
        proceeding is hereby authorized by each Holder to make such payments to the
        Trustee and, in the event that the Trustee shall consent to the making of
        such
        payments directly to the Holders, to first pay to the Trustee any amount
        due it
        for the reasonable compensation, expenses, disbursements and advances of
        the
        Trustee, its agents and counsel, and any other amounts owing the Trustee,
        any
        predecessor Trustee and other Persons under Section 6.6.

       

      SECTION
        5.5.  Trustee
        May Enforce Claim Without Possession of Securities.

       

      All
        rights of action and claims under this Indenture or the Securities may be
        prosecuted and enforced by the Trustee without the possession of any of the
        Securities or the production thereof in any proceeding relating thereto,
        and any
        such proceeding instituted by the Trustee shall be brought in its own name
        as
        trustee of an express trust, and any recovery of judgment shall, subject
        to
Article XII and after provision for the payment of all the amounts owing
        the Trustee, any predecessor Trustee and other Persons under Section 6.6,
        be for the ratable benefit of the Holders of the Securities in respect of
        which
        such judgment has been recovered.

       

      SECTION
        5.6.  Application
        of Money Collected.

       

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

       

      FIRST:  To
        the payment of all amounts due the Trustee, any predecessor Trustee and other
        Persons under Section 6.6;

       

      SECOND:  To
        the payment of all Senior Debt of the Company if and to the extent required
        by
Article XII;

       

      THIRD:  Subject
        to Article XII, to the payment of the amounts then due and unpaid upon
        the Securities for principal and any premium and interest (including any
        Additional Interest) in respect of which or for the benefit of which such
        money
        has been collected, ratably, without preference or priority of any kind,
        according to the amounts due and payable on the Securities for principal
        and any
        premium and interest (including any Additional Interest), respectively;
        and

       

      FOURTH:  The
        balance, if any, to the Person or Persons entitled thereto.

       

      SECTION
        5.7.  Limitation
        on Suits.

       

      Subject
        to Section 5.8, no Holder of any Securities shall have any right to
        institute any proceeding, judicial or otherwise, with respect to this Indenture
        or for the appointment of a custodian, receiver, assignee, trustee, liquidator,
        sequestrator (or other similar official) or for any other remedy hereunder,
        unless:

       

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

       

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

       

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

       

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

       

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

       

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

      SECTION
        5.8.  Unconditional
        Right of Holders to Receive Principal, Premium, if any, and Interest; Direct
        Action by Holders of Preferred Securities.

       

      Notwithstanding
        any other provision in this Indenture, the Holder of any Security shall have
        the
        right, which is absolute and unconditional, to receive payment of the principal
        of and any premium on such Security at its Maturity and payment of interest
        (including any Additional Interest) on such Security when due and payable
        and to
        institute suit for the enforcement of any such payment, and such right shall
        not
        be impaired without the consent of such Holder.  Any registered holder
        of the Preferred Securities shall have the right, upon the occurrence of
        an
        Event of Default described in Section 5.1(a) or Section 5.1(b), to
        institute a suit directly against the Company for enforcement of payment
        to such
        holder of principal of and any premium and interest (including any Additional
        Interest) on the Securities having a principal amount equal to the aggregate
        Liquidation Amount of the Preferred Securities held by such holder.

       

      SECTION
        5.9.  Restoration
        of Rights and Remedies.

       

      If
        the
        Trustee, any Holder or any holder of Preferred Securities 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, such Holder or such holder of Preferred
        Securities, then and in every such case the Company, the Trustee, such Holders
        and such holder of Preferred Securities shall, subject to any determination
        in
        such proceeding, be restored severally and respectively to their former
        positions hereunder, and thereafter all rights and remedies of the Trustee,
        such
        Holder and such holder of Preferred Securities shall continue as though no
        such
        proceeding had been instituted.

       

      SECTION
        5.10.  Rights
        and Remedies Cumulative.

       

      Except
        as
        otherwise provided in Section 3.6(f), no right or remedy herein conferred
        upon or reserved to the Trustee or the Holders is intended to be exclusive
        of
        any other right or remedy, and every right and remedy shall, to the extent
        permitted by law, be cumulative and in addition to every other right and
        remedy
        given hereunder or now or hereafter existing at law or in equity or
        otherwise.  The assertion or employment of any right or remedy
        hereunder, or otherwise, shall not prevent the concurrent assertion or
        employment of any other appropriate right or remedy.

       

      SECTION
        5.11.  Delay
        or Omission Not Waiver.

       

      No
        delay
        or omission of the Trustee, any Holder of any Securities or any holder of
        any
        Preferred Security 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 V or by law to the Trustee or to the Holders and
        the right and remedy given to the holders of Preferred Securities by Section
        5.8 may be exercised from time to time, and as often as may be deemed
        expedient, by the Trustee, the Holders or the holders of Preferred Securities,
        as the case may be.

       

      SECTION
        5.12.  Control
        by Holders.

       

      The
        Holders of not less than a majority in aggregate principal amount of the
        Outstanding Securities (or, as the case may be, the holders of a majority
        in
        aggregate Liquidation Amount of Preferred Securities) shall have the right
        to
        direct the time, method and place of conducting any proceeding for any remedy
        available to the Trustee or exercising any trust or power conferred on the
        Trustee; provided, that:

       

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

       

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

       

      (c)  subject
        to the provisions of Section 6.2, the Trustee shall have the right to
        decline to follow such direction if a Responsible Officer or Officers of
        the
        Trustee shall, in good faith, reasonably determine that the proceeding so
        directed would be unjustly prejudicial to the Holders not joining in any
        such
        direction or would involve the Trustee in personal liability.

       

      SECTION
        5.13.  Waiver
        of Past Defaults.

       

      (a)  The
        Holders of not less than a majority in aggregate principal amount of the
        Outstanding Securities or the holders of not less than a majority in aggregate
        Liquidation Amount of the Preferred Securities may waive any past Event of
        Default hereunder and its consequences except an Event of Default:

       

      (i)  in
        the
        payment of the principal of or any premium or interest (including any Additional
        Interest) on any Outstanding Security (unless such Event of Default has been
        cured and the Company has paid to or deposited with the Trustee a sum sufficient
        to pay all installments of interest (including any Additional Interest) due
        and
        past due and all principal of and any premium on all Securities due otherwise
        than by acceleration), or

       

      (ii)  in
        respect of a covenant or provision hereof that under Article IX cannot be
        modified or amended without the consent of each Holder of any Outstanding
        Security.

       

      (b)  Any
        such
        waiver shall be deemed to be on behalf of the Holders of all the Outstanding
        Securities or, in the case of a waiver by holders of Preferred Securities
        issued
        by such Trust, by all holders of Preferred Securities.

       

      (c)  Upon
        any
        such waiver, such Event of 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 Event
        of
        Default or impair any right consequent thereon.

       

      SECTION
        5.14.  Undertaking
        for Costs.

       

      All
        parties to this Indenture agree, and each Holder of any Security by his or
        her
        acceptance thereof shall be deemed to have agreed, that any court may in
        its
        discretion require, in any suit for the enforcement of any right or remedy
        under
        this Indenture, or in any suit against the Trustee for any action taken or
        omitted by it as Trustee, the filing by any party litigant in such suit of
        an
        undertaking to pay the costs of such suit, and that such court may in its
        discretion assess reasonable costs, including reasonable attorneys’ fees and
        expenses, against any party litigant in such suit, having due regard to the
        merits and good faith of the claims or defenses made by such party litigant;
        but
        the provisions of this Section 5.14 shall not apply to any suit
        instituted by the Trustee, to any suit instituted by any Holder, or group
        of
        Holders, holding in the aggregate more than ten percent (10%) in aggregate
        principal amount of the Outstanding Securities, or to any suit instituted
        by any
        Holder for the enforcement of the payment of the principal of or any premium
        on
        the Security after the Stated Maturity or any interest (including any Additional
        Interest) on any Security after it is due and payable.

       

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

       

      The
        Company covenants (to the extent that it may lawfully do so) that it will
        not at
        any time insist upon, or plead, or in any manner whatsoever claim or take
        the
        benefit or advantage of, any usury, stay or extension law wherever enacted,
        now
        or at any time hereafter in force, which may affect the covenants or the
        performance of this Indenture; and the Company (to the extent that it may
        lawfully do so) hereby expressly waives all 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.

       

       

      ARTICLE
        VI

       

       

      

       

       

      The
        Trustee

       

      SECTION
        6.1.  Corporate
        Trustee Required.

       

      There
        shall at all times be a Trustee hereunder with respect to the
        Securities.  The Trustee shall be a corporation or national banking
        association organized and doing business under the laws of the United States
        or
        of any state thereof, authorized to exercise corporate trust powers, having
        a
        combined capital and surplus of at least $50,000,000, subject to supervision
        or
        examination by Federal or state authority and having an office within the
        United
        States.  If such entity publishes reports of condition at least
        annually, pursuant to law or to the requirements of such supervising or
        examining authority, then, for the purposes of this Section 6.1, the
        combined capital and surplus of such entity shall be deemed to be its combined
        capital and surplus as set forth in its most recent report of condition so
        published.  If at any time the Trustee shall cease to be eligible in
        accordance with the provisions of this Section 6.1, it shall resign
        immediately in the manner and with the effect hereinafter specified in this
        Article VI.

       

      SECTION
        6.2.  Certain
        Duties and Responsibilities.

       

      Except
        during the continuance of an Event of Default:

       

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

       

      (ii)  in
        the
        absence of bad faith on its part, the Trustee may conclusively rely, as to
        the
        truth of the statements and the correctness of the opinions expressed therein,
        upon certificates or opinions furnished to the Trustee and conforming to
        the
        requirements of this Indenture; provided, that in the case of any such
        certificates or opinions that by any provision hereof are specifically required
        to be furnished to the Trustee, the Trustee shall be under a duty to examine
        the
        same to determine whether or not they substantially conform on their face
        to the
        requirements of this Indenture.

       

      (b)  If
        an
        Event of Default known to the Trustee has occurred and is continuing, the
        Trustee shall, prior to the receipt of directions, if any, from the Holders
        of
        at least a majority in aggregate principal amount of the Outstanding Securities
        (or, if applicable, from the holders of at least a majority in aggregate
        Liquidation Amount of Preferred Securities), 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.

       

      (c)  Notwithstanding
        the foregoing, no provision of this Indenture shall require the Trustee to
        expend or risk its own funds or otherwise incur any financial liability in
        the
        performance of any of its duties hereunder, or in the exercise of any of
        its
        rights or powers, if it shall have reasonable grounds for believing that
        repayment of such funds or adequate indemnity against such risk or liability
        is
        not reasonably assured to it.  Whether or not therein expressly so
        provided, every provision of this Indenture relating to the conduct or affecting
        the liability of or affording protection to the Trustee shall be subject
        to the
        provisions of this Section 6.2.  To the extent that, at law or
        in equity, the Trustee has duties and liabilities relating to the Holders,
        the
        Trustee shall not be liable to any Holder or any holder of Preferred Securities
        for the Trustee’s good faith reliance on the provisions of this
        Indenture.  The provisions of this Indenture, to the extent that they
        restrict the duties and liabilities of the Trustee otherwise existing at
        law or
        in equity, are agreed by the Company and the Holders and the holders of
        Preferred Securities to replace such other duties and liabilities of the
        Trustee.

       

      (d)  No
        provisions of this Indenture shall be construed to relieve the Trustee from
        liability with respect to matters that are within the authority of the Trustee
        under this Indenture for its own negligent action, negligent failure to act
        or
        willful misconduct, except that:

       

      (i)  the
        Trustee shall not be liable for any error or judgment made in good faith
        by an
        authorized officer of the Trustee, unless it shall be proved that the Trustee
        was negligent in ascertaining the pertinent facts;

       

      (ii)  the
        Trustee shall not be liable with respect to any action taken or omitted to
        be
        taken by it in good faith in accordance with the direction of the Holders
        of at
        least a majority in aggregate principal amount of the Outstanding Securities
        (or, as the case may be, the holders of a majority in aggregate Liquidation
        Amount of Preferred Securities); and

       

      (iii)  the
        Trustee shall be under no liability for interest on any money received by
        it
        hereunder except as otherwise agreed in writing with the Company and money
        held
        by the Trustee in trust hereunder need not be segregated from other funds
        except
        to the extent required by law.

       

      (e)  If
        at any
        time the Trustee hereunder is not the same Person as the Property Trustee
        under
        the Trust Agreement:

       

      (i)  whenever
        a reference is made herein to the dissolution, termination or liquidation
        of the
        Trust, the Trustee shall be entitled to assume that no such dissolution,
        termination, or liquidation has occurred so long as the Securities are or
        continue to be registered in the name of such Property Trustee, and the Trustee
        shall be charged with notice or knowledge of such dissolution, termination
        or
        liquidation only upon written notice thereof given to the Trustee by the
        Depositor under the Trust Agreement; and

       

      (ii)  the
        Trustee shall not be charged with notice or knowledge that any Person is
        a
        holder of Preferred Securities or Common Securities issued by the Trust or
        whether any group of holders of Preferred Securities constitutes any specified
        percentage of all outstanding Preferred Securities for any purpose under
        this
        Indenture, unless and until the Trustee is furnished with a list of holders
        by
        such Property Trustee and the aggregate Liquidation Amount of the Preferred
        Securities then outstanding.  The Trustee may conclusively rely and
        shall be protected in relying on such list.

       

      (f)  Notwithstanding
        Section 1.10, the Trustee shall not, and shall not be deemed to, owe any
        fiduciary duty to the holders of any of the Trust Securities issued by the
        Trust
        and shall not be liable to any such holder (other than for the willful
        misconduct or negligence of the Trustee) if the Trustee in good faith (i)
        pays
        over or distributes to a registered Holder of the Securities or to the Company
        or to any other Person, cash, property or securities to which such holder
        of
        such Trust Securities shall be entitled or (ii) takes any action or omits
        to
        take any action at the request of the Holder of such
        Securities.  Nothing in this paragraph shall affect the obligation of
        any other such Person to hold such payment for the benefit of, and to pay
        such
        amount over to, such holders of Preferred Securities or Common Securities
        or
        their representatives.

       

      SECTION
        6.3.  Notice
        of Defaults.

       

      Within
        ninety (90) days after the occurrence of any default actually known to the
        Trustee, the Trustee shall give the Holders notice of such default unless
        such
        default shall have been cured or waived; provided, that except in the
        case of a default in the payment of the principal of or any premium or interest
        on any Securities, the Trustee shall be fully protected in withholding the
        notice if and so long as the board of directors, the executive committee
        or a
        trust committee of directors and/or Responsible Officers of the Trustee in
        good
        faith determines that withholding the notice is in the interest of holders
        of
        Securities; and provided, further, that in the case of any default of
        the character specified in Section 5.1(c), no such notice to Holders
        shall be given until at least thirty (30) days after the occurrence
        thereof.  For the purpose of this Section 6.3, the term
“default” means any event which is, or after notice or lapse of time or both
        would become, an Event of Default.

       

      SECTION
        6.4.  Certain
        Rights of Trustee.

       

      Subject
        to the provisions of Section 6.2:

       

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

       

      (b)  if
        (i) in
        performing its duties under this Indenture the Trustee is required to decide
        between alternative courses of action, (ii) in construing any of the provisions
        of this Indenture the Trustee finds ambiguous or inconsistent with any other
        provisions contained herein or (iii) the Trustee is unsure of the application
        of
        any provision of this Indenture, then, except as to any matter as to which
        the
        Holders are entitled to decide under the terms of this Indenture, the Trustee
        shall deliver a notice to the Company requesting the Company’s written
        instruction as to the course of action to be taken and the Trustee shall
        take
        such action, or refrain from taking such action, as the Trustee shall be
        instructed in writing to take, or to refrain from taking, by the Company;
        provided, that if the Trustee does not receive such instructions from
        the Company within ten Business Days after it has delivered such notice or
        such
        reasonably shorter period of time set forth in such notice, the Trustee may,
        but
        shall be under no duty to, take such action, or refrain from taking such
        action,
        as the Trustee shall deem advisable and in the best interests of the Holders,
        in
        which event the Trustee shall have no liability except for its own negligence,
        bad faith or willful misconduct;

       

      (c)  any
        request or direction of the Company shall be sufficiently evidenced by a
        Company
        Request or Company Order and any resolution of the Board of Directors may
        be
        sufficiently evidenced by a Board Resolution;

       

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

       

      (e)  the
        Trustee shall be under no obligation to exercise any of the rights or powers
        vested in it by this Indenture at the request or direction of any of the
        Holders
        or any holder of Preferred Securities pursuant to this Indenture, unless
        such
        Holders (or such holders of Preferred Securities) shall have offered to the
        Trustee security or indemnity reasonably satisfactory to it against the costs,
        expenses (including reasonable attorneys’ fees and expenses) and liabilities
        that might be incurred by it in compliance with such request or direction,
        including reasonable advances as may be requested by the Trustee;

       

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

       

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

       

      (h)  whenever
        in the administration of this Indenture the Trustee shall deem it desirable
        to
        receive instructions with respect to enforcing any remedy or right or taking
        any
        other action with respect to enforcing any remedy or right hereunder, the
        Trustees (i) may request instructions from the Holders (which instructions
        may
        only be given by the Holders of the same aggregate principal amount of
        Outstanding Securities as would be entitled to direct the Trustee under this
        Indenture in respect of such remedy, right or action), (ii) may refrain from
        enforcing such remedy or right or taking such action until such instructions
        are
        received and (iii) shall be protected in acting in accordance with such
        instructions;

       

      (i)  except
        as
        otherwise expressly provided by this Indenture, the Trustee shall not be
        under
        any obligation to take any action that is discretionary under the provisions
        of
        this Indenture;

       

      (j)  without
        prejudice to any other rights available to the Trustee under applicable law,
        when the Trustee incurs expenses or renders services in connection with any
        bankruptcy, insolvency or other proceeding referred to in clauses (d) or
        (e) of
        the definition of Event of Default, such expenses (including legal fees and
        expenses of its agents and counsel) and the compensation for such services
        are
        intended to constitute expenses of administration under any bankruptcy laws
        or
        law relating to creditors rights generally;

       

      (k)  whenever
        in the administration of this Indenture the Trustee shall deem it desirable
        that
        a matter be proved or established prior to taking, suffering or omitting
        any
        action hereunder, the Trustee (unless other evidence be herein specifically
        prescribed) may, in the absence of bad faith on its part, conclusively rely
        upon
        an Officer’s Certificate addressing such matter, which, upon receipt of such
        request, shall be promptly delivered by the Company;

       

      (l)  the
        Trustee shall not be charged with knowledge of any Event of Default unless
        either (i) a Responsible Officer of the Trustee shall have actual knowledge
        or
        (ii) the Trustee shall have received written notice thereof from the Company
        or
        a Holder; and

       

      (m)  in
        the
        event that the Trustee is also acting as Paying Agent, Authenticating Agent
        or
        Securities Registrar hereunder, the rights and protections afforded to the
        Trustee pursuant to this Article VI shall also be afforded such Paying
        Agent, Authenticating Agent, or Securities Registrar.

       

      SECTION
        6.5.  May
        Hold Securities.

       

      The
        Trustee, any Authenticating Agent, any Paying Agent, any Securities Registrar
        or
        any other agent of the Company, in its individual or any other capacity,
        may
        become the owner or pledgee of Securities and may otherwise deal with the
        Company with the same rights it would have if it were not Trustee,
        Authenticating Agent, Paying Agent, Securities Registrar or such other
        agent.

       

      SECTION
        6.6.  Compensation;
        Reimbursement; Indemnity.

       

      (a)  The
        Company agrees:

       

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

       

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

       

      (iii)  to
        the
        fullest extent permitted by applicable law, to indemnify the Trustee and
        its
        Affiliates, and their officers, directors, shareholders, agents, representatives
        and employees for, and to hold them harmless against, any loss, damage,
        liability, tax (other than income, franchise or other taxes imposed on amounts
        paid pursuant to (i) or (ii) hereof), penalty, expense or claim of any kind
        or
        nature whatsoever incurred without negligence, bad faith or willful misconduct
        on its part arising out of or in connection with the acceptance or
        administration of this trust or the performance of the Trustee’s duties
        hereunder, including the costs and expenses of defending itself against any
        claim or liability in connection with the exercise or performance of any
        of its
        powers or duties hereunder.

       

      (b)  To
        secure
        the Company’s payment obligations in this Section 6.6, the Company hereby
        grants and pledges to the Trustee and the Trustee shall have a lien prior
        to the
        Securities on all money or property held or collected by the Trustee, other
        than
        money or property held in trust to pay principal and interest on particular
        Securities.  Such lien shall survive the satisfaction and discharge of
        this Indenture or the resignation or removal of the Trustee.

       

      (c)  The
        obligations of the Company under this Section 6.6 shall survive the
        satisfaction and discharge of this Indenture and the earlier resignation
        or
        removal of the Trustee.

       

      (d)  In
        no
        event shall the Trustee be liable for any indirect, special, punitive or
        consequential loss or damage of any kind whatsoever, including, but not limited
        to, lost profits, even if the Trustee has been advised of the likelihood
        of such
        loss or damage and regardless of the form of action.

       

      (e)  In
        no
        event shall the Trustee be liable for any failure or delay in the performance
        of
        its obligations hereunder because of circumstances beyond its control,
        including, but not limited to, acts of God, flood, war (whether declared
        or
        undeclared), terrorism, fire, riot, embargo, government action, including
        any
        laws, ordinances, regulations, governmental action or the like which delay,
        restrict or prohibit the providing of the services contemplated by this
        Indenture.

       

      SECTION
        6.7.  Resignation
        and Removal; Appointment of Successor.

       

      (a)  No
        resignation or removal of the Trustee and no appointment of a successor Trustee
        pursuant to this Article VI shall become effective until the acceptance
        of appointment by the successor Trustee under Section 6.8.

       

      (b)  The
        Trustee may resign at any time by giving at least thirty (30) days’ prior
        written notice thereof to the Company.

       

      (c)  Unless
        an
        Event of Default shall have occurred and be continuing, the Trustee may be
        removed at any time by the Company by a Board Resolution.  If an Event
        of Default shall have occurred and be continuing, the Trustee may be removed
        by
        Act of the Holders of a majority in aggregate principal amount of the
        Outstanding Securities, delivered to the Trustee and to the
        Company.

       

      (d)  If
        the
        Trustee shall resign, be removed or become incapable of acting, or if a vacancy
        shall occur in the office of Trustee for any reason, at a time when no Event
        of
        Default shall have occurred and be continuing, the Company, by a Board
        Resolution, shall promptly appoint a successor Trustee, and such successor
        Trustee and the retiring Trustee shall comply with the applicable requirements
        of Section 6.8.  If the Trustee shall resign, be removed or
        become incapable of acting, or if a vacancy shall occur in the office of
        Trustee
        for any reason, at a time when an Event of Default shall have occurred and
        be
        continuing, the Holders, by Act of the Holders of a majority in aggregate
        principal amount of the Outstanding Securities, shall promptly appoint a
        successor Trustee, and such successor Trustee and the retiring Trustee shall
        comply with the applicable requirements of Section 6.8.  If no
        successor Trustee shall have been so appointed by the Company or the Holders
        and
        accepted appointment within sixty (60) days after the giving of a notice
        of
        resignation by the Trustee or the removal of the Trustee in the manner required
        by Section 6.8, any Holder who has been a bona fide Holder of a Security
        for at least six months (or, if the Securities have been Outstanding for
        less
        than six (6) months, the entire period of such lesser time) may, on behalf
        of
        such Holder and all others similarly situated, and any resigning Trustee
        may, at
        the expense of the Company, petition any court of competent jurisdiction
        for the
        appointment of a successor Trustee.

       

      (e)  The
        Company shall give notice to all Holders in the manner provided in Section
        1.6 of each resignation and each removal of the Trustee and each appointment
        of a successor Trustee.  Each notice shall include the name of the
        successor Trustee and the address of its Corporate Trust Office.

       

      SECTION
        6.8.  Acceptance
        of Appointment by Successor.

       

      (a)  In
        case
        of the appointment hereunder of a successor Trustee, each successor Trustee
        so
        appointed shall execute, acknowledge and deliver to the Company and to the
        retiring Trustee an instrument accepting such appointment, and thereupon
        the
        resignation or removal of the retiring Trustee shall become effective and
        such
        successor Trustee, without any further act, deed or conveyance, shall become
        vested with all the rights, powers, trusts and duties of the retiring Trustee;
        but, on the request of the Company or the successor Trustee, such retiring
        Trustee shall, upon payment of its charges, execute and deliver an instrument
        transferring to such successor Trustee all the rights, powers and trusts
        of the
        retiring Trustee and shall duly assign, transfer and deliver to such successor
        Trustee all property and money held by such retiring Trustee
        hereunder.

       

      (b)  Upon
        request of any such successor Trustee, the Company shall execute any and
        all
        instruments for more fully and certainly vesting in and confirming to such
        successor Trustee all rights, powers and trusts referred to in paragraph
        (a) of
        this Section 6.8.

       

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

       

      SECTION
        6.9.  Merger,
        Conversion, Consolidation or Succession to Business.

       

      Any
        Person into which the Trustee may be merged or converted or with which it
        may be
        consolidated, or any Person resulting from any merger, conversion or
        consolidation to which the Trustee shall be a party, or any Person succeeding
        to
        all or substantially all of the corporate trust business of the Trustee,
        shall
        be the successor of the Trustee hereunder, without the execution or filing
        of
        any paper or any further act on the part of any of the parties hereto,
provided, that such Person shall be otherwise qualified and eligible
        under this Article VI.  In case any Securities shall have been
        authenticated, but not delivered, by the Trustee then in office, any successor
        by merger, conversion or consolidation or as otherwise provided above in
        this
Section 6.9 to such authenticating Trustee may adopt such authentication
        and deliver the Securities so authenticated, and in case any Securities shall
        not have been authenticated, any successor to the Trustee may authenticate
        such
        Securities either in the name of any predecessor Trustee or in the name of
        such
        successor Trustee, and in all cases the certificate of authentication shall
        have
        the full force which it is provided anywhere in the Securities or in this
        Indenture that the certificate of the Trustee shall have.

       

      SECTION
        6.10.  Not
        Responsible for Recitals or Issuance of Securities.

       

      The
        recitals contained herein and in the Securities, except the Trustee’s
        certificates of authentication, shall be taken as the statements of the Company,
        and neither the Trustee nor any Authenticating Agent assumes any responsibility
        for their correctness.  The Trustee makes no representations as to the
        validity or sufficiency of this Indenture or of the
        Securities.  Neither the Trustee nor any Authenticating Agent shall be
        accountable for the use or application by the Company of the Securities or
        the
        proceeds thereof.

       

      SECTION
        6.11.  Appointment
        of Authenticating Agent.

       

      (a)  The
        Trustee may appoint an Authenticating Agent or Agents with respect to the
        Securities, which shall be authorized to act on behalf of the Trustee to
        authenticate Securities issued upon original issue and upon exchange,
        registration of transfer or partial redemption thereof or pursuant to Section
        3.6, and Securities so authenticated shall be entitled to the benefits of
        this Indenture and shall be valid and obligatory for all purposes as if
        authenticated by the Trustee hereunder.  Wherever reference is made in
        this Indenture to the authentication and delivery of Securities by the Trustee
        or the Trustee’s certificate of authentication, such reference shall be deemed
        to include authentication and delivery on behalf of the Trustee by an
        Authenticating Agent.  Each Authenticating Agent shall be acceptable
        to the Company and shall at all times be a corporation organized and doing
        business under the laws of the United States of America, or of any State
        or
        Territory thereof or the District of Columbia, authorized under such laws
        to act
        as Authenticating Agent, having a combined capital and surplus of not less
        than
        $50,000,000 and subject to supervision or examination by Federal or state
        authority.  If such Authenticating Agent publishes reports of
        condition at least annually pursuant to law or to the requirements of said
        supervising or examining authority, then for the purposes of this Section
        6.11 the combined capital and surplus of such Authenticating Agent shall
        be
        deemed to be its combined capital and surplus as set forth in its most recent
        report of condition so published.  If at any time an Authenticating
        Agent shall cease to be eligible in accordance with the provisions of this
        Section 6.11, such Authenticating Agent shall resign immediately in the
        manner and with the effect specified in this Section 6.11.

       

      (b)  Any
        Person into which an Authenticating Agent may be merged or converted or with
        which it may be consolidated, or any Person resulting from any merger,
        conversion or consolidation to which such Authenticating Agent shall be a
        party,
        or any Person succeeding to all or substantially all of the corporate trust
        business of an Authenticating Agent shall be the successor Authenticating
        Agent
        hereunder, provided such Person shall be otherwise eligible under this
Section 6.11, without the execution or filing of any paper or any further
        act on the part of the Trustee or the Authenticating Agent.

       

      (c)  An
        Authenticating Agent may resign at any time by giving written notice thereof
        to
        the Trustee and to the Company.  The Trustee may at any time terminate
        the agency of an Authenticating Agent by giving written notice thereof to
        such
        Authenticating Agent and to the Company.  Upon receiving such a notice
        of resignation or upon such a termination, or in case at any time such
        Authenticating Agent shall cease to be eligible in accordance with the
        provisions of this Section 6.11, the Trustee may appoint a successor
        Authenticating Agent eligible under the provisions of this Section 6.11,
        which shall be acceptable to the Company, and shall give notice of such
        appointment to all Holders.  Any successor Authenticating Agent upon
        acceptance of its appointment hereunder shall become vested with all the
        rights,
        powers and duties of its predecessor hereunder, with like effect as if
        originally named as an Authenticating Agent.

       

      (d)  The
        Company agrees to pay to each Authenticating Agent from time to time reasonable
        compensation for its services under this Section 6.11 in such amounts as
        the Company and the Authenticating Agent shall agree from time to
        time.

       

      (e)  If
        an
        appointment of an Authenticating Agent is made pursuant to this Section
        6.11, the Securities may have endorsed thereon, in addition to the Trustee’s
        certificate of authentication, an alternative certificate of authentication
        in
        the following form:

       

      This
        is
        one of the Securities referred to in the within mentioned
        Indenture.

      
        	
                Dated:

              	
                The
                  Bank of New York Trust Company, National Association, not in its
                  individual capacity, but solely as Trustee

                 

                 

                By:        

                Authenticating
                  Agent

                 

                 

                By:                                                               

                Authorized
                  Signatory

                 

              

      

       

      ARTICLE
        VII

       

       

      

       

       

      Holder’s
        Lists and Reports by Company

       

      SECTION
        7.1.  Company
        to Furnish Trustee Names and Addresses of Holders.

       

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

       

      (a)  semiannually,
        on or before June 30 and December 31 of each year, a list, in such form as
        the
        Trustee may reasonably require, of the names and addresses of the Holders
        as of
        a date not more than fifteen (15) days prior to the delivery thereof,
        and

       

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

       

      in
        each
        case to the extent such information is in the possession or control of the
        Company and has not otherwise been received by the Trustee in its capacity
        as
        Securities Registrar.

       

      SECTION
        7.2.  Preservation
        of Information, Communications to Holders.

       

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

       

      (b)  The
        rights of Holders to communicate with other Holders with respect to their
        rights
        under this Indenture or under the Securities, and the corresponding rights
        and
        privileges of the Trustee, shall be as provided in the Trust Indenture
        Act.

       

      (c)  Every
        Holder of Securities, by receiving and holding the same, agrees with the
        Company
        and the Trustee that neither the Company nor the Trustee nor any agent of
        either
        of them shall be held accountable by reason of the disclosure of information
        as
        to the names and addresses of the Holders made pursuant to the Trust Indenture
        Act.

       

      SECTION
        7.3.  Reports
        by Company.

       

      (a)  The
        Company shall furnish to the Holders and to prospective purchasers of
        Securities, upon their request, the information required to be furnished
        pursuant to Rule 144A(d)(4) under the Securities Act.  The delivery
        requirement set forth in the preceding sentence may be satisfied by compliance
        with Section 7.3(b) hereof.

       

      (b)  The
        Company shall furnish to each of (i) the Trustee, (ii) the Holders and to
        subsequent holders of Securities, (iii) Taberna Capital Management, LLC
        (“Taberna”), 450 Park Avenue, 11th
        Floor,
        New York, New York 10022, Attn: Michael A. Fralin (or such other address as
        designated by Taberna) and (iv) any beneficial owner of the Securities
        reasonably identified to the Company (which identification may be made either
        by
        such beneficial owner or by Taberna), a duly completed and executed certificate
        substantially and substantively in the form attached hereto as Exhibit A,
        including the financial statements referenced in such Exhibit, which certificate
        and financial statements shall be so furnished by the Company not later than
        forty-five (45) days after the end of each of the first three fiscal quarters
        of
        each fiscal year of the Company and not later than ninety (90) days after
        the
        end of each fiscal year of the Company.  The delivery requirements
        under this Section 7.3(b) may be satisfied by compliance with Section
        8.16(b) of the Trust Agreement.

       

      (c)  If
        the
        Company intends to file its annual and quarterly information with the Securities
        and Exchange Commission (the “Commission”) in electronic form pursuant
        to Regulation S-T of the Commission using the Commission’s Electronic Data
        Gathering, Analysis and Retrieval (“EDGAR”) system, the Company shall
        notify the Trustee in the manner prescribed herein of each such annual and
        quarterly filing.  The Trustee is hereby authorized and directed to
        access the EDGAR system for purposes of retrieving the financial information
        so
        filed.  Compliance with the foregoing shall constitute delivery by the
        Company of its financial statements to the Trustee in compliance with the
        provisions of Section 314(a) of the Trust Indenture Act of 1939, as amended,
        if
        applicable.  The Trustee shall have no duty to search for or obtain
        any electronic or other filings that the Company makes with the Commission,
        regardless of whether such filings are periodic, supplemental or
        otherwise.  Delivery of reports, information and documents to the
        Trustee pursuant to this Section 7.3(c) shall be solely for purposes of
        compliance with this Section 7.3(c) and, if applicable, with Section
        314(a) of the Trust Indenture Act.  The Trustee’s receipt of such
        reports, information and documents shall not constitute notice to it of the
        content thereof or any matter determinable from the content thereof, including
        the Company’s compliance with any of its covenants hereunder, as to which the
        Trustee is entitled to rely upon Officer’s Certificates.

       

       

      ARTICLE
        VIII

       

       

      

       

       

      Consolidation,
        Merger, Conveyance, Transfer or Lease

       

      SECTION
        8.1.  Company
        May Consolidate, Etc., Only on Certain Terms.

       

      The
        Company shall not consolidate with or merge into any other Person or convey,
        transfer or lease its properties and assets substantially as an entirety
        to any
        Person, and no Person shall consolidate with or merge into the Company or
        convey, transfer or lease its properties and assets substantially as an entirety
        to the Company, unless:

       

      (a)  if
        the
        Company shall consolidate with or merge into another Person or convey, transfer
        or lease its properties and assets substantially as an entirety to any Person,
        the entity formed by such consolidation or into which the Company is merged
        or
        the Person that acquires by conveyance or transfer, or that leases, the
        properties and assets of the Company substantially as an entirety shall be
        an
        entity organized and existing under the laws of the United States of America
        or
        any State or Territory thereof or the District of Columbia and shall expressly
        assume, by an indenture supplemental hereto, executed and delivered to the
        Trustee, in form reasonably satisfactory to the Trustee, the due and punctual
        payment of the principal of and any premium and interest (including any
        Additional Interest) on all the Securities and the performance of every covenant
        of this Indenture on the part of the Company to be performed or
        observed;

       

      (b)  immediately
        after giving effect to such transaction, no Event of Default, and no event
        that,
        after notice or lapse of time, or both, would constitute an Event of Default,
        shall have happened and be continuing; and

       

      (c)  the
        Company has delivered to the Trustee an Officer’s Certificate and an Opinion of
        Counsel, each stating that such consolidation, merger, conveyance, transfer
        or
        lease and, if a supplemental indenture is required in connection with such
        transaction, any such supplemental indenture comply with this Article
        VIII and that all conditions precedent herein provided for relating to such
        transaction have been complied with; and the Trustee may rely upon such
        Officer’s Certificate and Opinion of Counsel as conclusive evidence that such
        transaction complies with this Section 8.1.

       

      SECTION
        8.2.  Successor
        Company Substituted.

       

      (a)  Upon
        any
        consolidation or merger by the Company with or into any other Person, or
        any
        conveyance, transfer or lease by the Company of its properties and assets
        substantially as an entirety to any Person in accordance with Section 8.1
        and the execution and delivery to the Trustee of the supplemental indenture
        described in Section 8.1(a), the successor entity formed by such
        consolidation or into which the Company is merged or to which such conveyance,
        transfer or lease is made shall succeed to, and be substituted for, and may
        exercise every right and power of, the Company under this Indenture with
        the
        same effect as if such successor Person had been named as the Company herein;
        and in the event of any such conveyance or transfer, following the execution
        and
        delivery of such supplemental indenture, the Company shall be discharged
        from
        all obligations and covenants under the Indenture and the
        Securities.

       

      (b)  Such
        successor Person may cause to be executed, and may issue either in its own
        name
        or in the name of the Company, any or all of the Securities issuable hereunder
        that theretofore shall not have been signed by the Company and delivered
        to the
        Trustee; and, upon the order of such successor Person instead of the Company
        and
        subject to all the terms, conditions and limitations in this Indenture
        prescribed, the Trustee shall authenticate and shall deliver any Securities
        that
        previously shall have been signed and delivered by the officers of the Company
        to the Trustee for authentication, and any Securities that such successor
        Person
        thereafter shall cause to be executed and delivered to the Trustee on its
        behalf.  All the Securities so issued shall in all respects have the
        same legal rank and benefit under this Indenture as the Securities theretofore
        or thereafter issued in accordance with the terms of this
        Indenture.

       

      (c)  In
        case
        of any such consolidation, merger, sale, conveyance or lease, such changes
        in
        phraseology and form may be made in the Securities thereafter to be issued
        as
        may be appropriate to reflect such occurrence.

       

       

      ARTICLE
        IX

       

       

      

       

       

      Supplemental
        Indentures

       

      SECTION
        9.1.  Supplemental
        Indentures Without Consent of Holders.

       

      Without
        the consent of any Holders, the Company, when authorized by a Board Resolution,
        and the Trustee, at any time and from time to time, may enter into one or
        more
        indentures supplemental hereto, in form reasonably satisfactory to the Trustee,
        for any of the following purposes:

       

      (a)  to
        evidence the succession of another Person to the Company, and the assumption
        by
        any such successor of the covenants of the Company herein and in the Securities;
        or

       

      (b)  to
        evidence and provide for the acceptance of appointment hereunder by a successor
        trustee; or

       

      (c)  to
        cure
        any ambiguity, to correct or supplement any provision herein that may be
        defective or inconsistent with any other provision herein, or to make or
        amend
        any other provisions with respect to matters or questions arising under this
        Indenture, which shall not be inconsistent with the other provisions of this
        Indenture (including any and all actions necessary or desirable as a result
        of
        changes in law or regulations), provided, that such action pursuant to
        this clause (b) shall not adversely affect in any material respect the interests
        of any Holders or the holders of the Preferred Securities; or

       

      (d)  to
        comply
        with the rules and regulations of any securities exchange or automated quotation
        system on which any of the Securities may be listed, traded or quoted;
        or

       

      (e)  to
        add to
        the covenants, restrictions or obligations of the Company or to add to the
        Events of Default, provided, that such action pursuant to this clause
        (e) shall not adversely affect in any material respect the interests of any
        Holders or the holders of the Preferred Securities; or

       

      (f)  to
        modify, eliminate or add to any provisions of the Indenture or the Securities
        to
        such extent as shall be necessary to ensure that the Securities are treated
        as
        indebtedness of the Company for United States Federal income tax purposes,
        provided, that such action pursuant to this clause (f) shall not
        adversely affect in any material respect the interests of any Holders or
        the
        holders of the Preferred Securities; or

       

      (g)  to
        make
        non-material administrative changes as the Company deems
        appropriate.

       

      SECTION
        9.2.  Supplemental
        Indentures With Consent of Holders.

       

      (a)  Subject
        to Section 9.1, with the consent of the Holders of not less than a
        majority in aggregate principal amount of the Outstanding Securities, by
        Act of
        said Holders delivered to the Company and the Trustee, the Company, when
        authorized by a Board Resolution, and the Trustee may enter into an indenture
        or
        indentures supplemental hereto for the purpose of adding any provisions to
        or
        changing in any manner or eliminating any of the provisions of this Indenture
        or
        of modifying in any manner the rights of the Holders of Securities under
        this
        Indenture; provided, that no such supplemental indenture shall, without
        the consent of the Holder of each Outstanding Security,

       

      (i)  change
        the Stated Maturity of the principal or any premium of any Security or change
        the date of payment of any installment of interest (including any Additional
        Interest) on any Security, or reduce the principal amount thereof or the
        rate of
        interest thereon or any premium payable upon the redemption thereof or change
        the place of payment where, or the coin or currency in which, any Security
        or
        interest thereon is payable, or restrict or impair the right to institute
        suit
        for the enforcement of any such payment on or after such date; or

       

      (ii)  reduce
        the percentage in aggregate principal amount of the Outstanding Securities,
        the
        consent of whose Holders is required for any such supplemental indenture,
        or the
        consent of whose Holders is required for any waiver of compliance with any
        provision of this Indenture or of defaults hereunder and their consequences
        provided for in this Indenture; or

       

      (iii)  modify
        any of the provisions of this Section 9.2, Section 5.13 or
Section 10.7, except to increase any percentage in aggregate
        principal
        amount of the Outstanding Securities, the consent of whose Holders is required
        for any reason, or to provide that certain other provisions of this Indenture
        cannot be modified or waived without the consent of the Holder of each Security;
        or

       

      (iv)  change
        the permitted minimum denominations of any Outstanding Securities.

       

      provided,
        further, that, so long as any Preferred Securities remain outstanding, no
        amendment under this Section 9.2 shall be effective until the holders of
        a majority in Liquidation Amount of the Preferred Securities shall have
        consented to such amendment; provided, further, that if the
        consent of the Holder of each Outstanding Security is required for any amendment
        under this Indenture, such amendment shall not be effective until the holder
        of
        each Outstanding Preferred Security shall have consented to such
        amendment.

      (b)  It
        shall
        not be necessary for any Act of Holders under this Section 9.2 to approve
        the particular form of any proposed supplemental indenture, but it shall
        be
        sufficient if such Act shall approve the substance thereof.

       

      SECTION
        9.3.  Execution
        of Supplemental Indentures.

       

      In
        executing or accepting the additional trusts created by any supplemental
        indenture permitted by this Article IX or the modifications thereby of
        the trusts created by this Indenture, the Trustee shall be entitled to receive,
        and shall be fully protected in conclusively relying upon, an Officer’s
        Certificate and an Opinion of Counsel stating that the execution of such
        supplemental indenture is authorized or permitted by this Indenture, and
        that
        all conditions precedent herein provided for relating to such action have
        been
        complied with.  The Trustee may, but shall not be obligated to, enter
        into any such supplemental indenture that affects the Trustee’s own rights,
        duties, indemnities or immunities under this Indenture or
        otherwise.  Copies of the final form of each supplemental indenture
        shall be delivered by the Trustee at the expense of the Company to each Holder,
        and, if the Trustee is the Property Trustee, to each holder of Preferred
        Securities, promptly after the execution thereof.

       

      SECTION
        9.4.  Effect
        of Supplemental Indentures.

       

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

       

      SECTION
        9.5.  Reference
        in Securities to Supplemental Indentures.

       

      Securities
        authenticated and delivered after the execution of any supplemental indenture
        pursuant to this Article IX may, and shall if required by the Company,
        bear a notation in form approved by the Company as to any matter provided
        for in
        such supplemental indenture.  If the Company shall so determine, new
        Securities so modified as to conform, in the opinion of the Company, to any
        such
        supplemental indenture may be prepared and executed by the Company and
        authenticated and delivered by the Trustee in exchange for Outstanding
        Securities.

       

       

      ARTICLE
        X

       

       

      

       

       

      Covenants

       

      SECTION
        10.1.  Payment
        of Principal, Premium, if any, and Interest.

       

      The
        Company covenants and agrees for the benefit of the Holders of the Securities
        that it will duly and punctually pay the principal of and any premium and
        interest (including any Additional Interest) on the Securities in accordance
        with the terms of the Securities and this Indenture.

       

      SECTION
        10.2.  Money
        for Security Payments to be Held in Trust.

       

      (a)  Whenever
        the Company shall have one or more Paying Agents, it will, prior to 10:00
        a.m.,
        New York City time, on each due date of the principal of or any premium or
        interest (including any Additional Interest) on any Securities, deposit with
        such Paying Agent a sum sufficient to pay such amount, such sum to be held
        as
        provided in the Trust Indenture Act and (unless such Paying Agent is the
        Trustee) the Company will promptly notify the Trustee of its failure to so
        act.

       

      (b)  The
        Company will cause each Paying Agent for the Securities other than the Trustee
        to execute and deliver to the Trustee an instrument in which such Paying
        Agent
        shall agree with the Trustee, subject to the provisions of this Section
        10.2, that such Paying Agent will (i) comply with the provisions of this
        Indenture and the Trust Indenture Act applicable to it as a Paying Agent
        and
        (ii) during the continuance of any default by the Company (or any other obligor
        upon the Securities) in the making of any payment in respect of the Securities,
        upon the written request of the Trustee, forthwith pay to the Trustee all
        sums
        held in trust by such Paying Agent for payment in respect of the
        Securities.

       

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

       

      (d)  Any
        money
        deposited with the Trustee or any Paying Agent for the payment of the principal
        of and any premium or interest (including any Additional Interest) on any
        Security and remaining unclaimed for two years after such principal and any
        premium or interest has become due and payable shall (unless otherwise required
        by mandatory provision of applicable escheat or abandoned or unclaimed property
        law) be paid on Company Request to the Company, or (if then held by the Company)
        shall (unless otherwise required by mandatory provision of applicable escheat
        or
        abandoned or unclaimed property law) be discharged from such trust; and the
        Holder of such Security shall thereafter, as an unsecured general creditor,
        look
        only to the Company for payment thereof, and all liability of the Trustee
        or
        such Paying Agent with respect to such trust money, and all liability of
        the
        Company as trustee thereof, shall thereupon cease; provided, 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 a newspaper
        published in the English language, customarily published on each Business
        Day
        and of general circulation in the Borough of Manhattan, The City of New York,
        notice that such money remains unclaimed and that, after a date specified
        therein, which shall not be less than thirty (30) days from the date of such
        publication, any unclaimed balance of such money then remaining will be repaid
        to the Company.

       

      SECTION
        10.3.  Statement
        as to Compliance.

       

      The
        Company shall deliver to the Trustee, within ninety (90) days after the end
        of
        each fiscal year of the Company ending after the date hereof, an Officer’s
        Certificate covering the preceding calendar year, stating whether or not
        to the
        knowledge of the signers thereof the Company is in default in the performance
        or
        observance of any of the terms, provisions and conditions of this Indenture
        (without regard to any period of grace or requirement of notice provided
        hereunder), and if the Company shall be in default, specifying all such defaults
        and the nature and status thereof of which they may have
        knowledge.  The delivery requirements of this Section 10.3 may
        be satisfied by compliance with Section 8.16(a) of the Trust
        Agreement.

       

      SECTION
        10.4.  Calculation
        Agent.

       

      (a)  The
        Company hereby agrees that for so long as any of the Securities remain
        Outstanding, there will at all times be an agent appointed to calculate LIBOR
        in
        respect of each Interest Payment Date in accordance with the terms of
Schedule A (the “Calculation Agent”).  The Company has
        initially appointed the Property Trustee as Calculation Agent for purposes
        of
        determining LIBOR for each Interest Payment Date.  The Calculation
        Agent may be removed by the Company at any time.  Notwithstanding the
        foregoing, so long as the Property Trustee holds any of the Securities, the
        Calculation Agent shall be the Property Trustee.  If the Calculation
        Agent is unable or unwilling to act as such or is removed by the Company,
        the
        Company will promptly appoint as a replacement Calculation Agent the London
        office of a leading bank which is engaged in transactions in Eurodollar deposits
        in the international Eurodollar market and which does not control or is not
        controlled by or under common control with the Company or its
        Affiliates.  The Calculation Agent may not resign its duties without a
        successor having been duly appointed.

       

      (b)  The
        Calculation Agent shall be required to agree that, as soon as possible after
        11:00 a.m. (London time) on each LIBOR Determination Date (as defined in
        Schedule A), but in no event later than 11:00 a.m. (London time) on the
        Business Day immediately following each LIBOR Determination Date, the
        Calculation Agent will calculate the interest rate (the Interest Payment
        shall
        be rounded to the nearest cent, with half a cent being rounded upwards) for
        the
        related Interest Payment Date, and will communicate such rate and amount
        to the
        Company, the Trustee, each Paying Agent and the Depositary.  The
        Calculation Agent will also specify to the Company the quotations upon which
        the
        foregoing rates and amounts are based and, in any event, the Calculation
        Agent
        shall notify the Company before 5:00 p.m.  (London time) on each LIBOR
        Determination Date that either:  (i) it has determined or is in
        the process of determining the foregoing rates and amounts or (ii) it has
        not determined and is not in the process of determining the foregoing rates
        and
        amounts, together with its reasons therefor.  The Calculation Agent’s
        determination of the foregoing rates and amounts for any Interest Payment
        Date
        will (in the absence of manifest error) be final and binding upon all
        parties.  For the sole purpose of calculating the interest rate for
        the Securities, “Business Day” shall be defined as any day on which dealings in
        deposits in Dollars are transacted in the London interbank market.

       

      SECTION
        10.5.  Additional
        Tax Sums.

       

      So
        long
        as no Event of Default has occurred and is continuing, if (a) the Trust is
        the
        Holder of all of the Outstanding Securities and (b) a Tax Event described
        in
        clause (i) or (iii) in the definition of Tax Event in Section 1.1 hereof
        has occurred and is continuing, the Company shall pay to the Trust (and its
        permitted successors or assigns under the related Trust Agreement) for so
        long
        as the Trust (or its permitted successor or assignee) is the registered holder
        of the Outstanding Securities, such amounts as may be necessary in order
        that
        the amount of Distributions (including any Additional Interest Amount (as
        defined in the Trust Agreement)) then due and payable by the Trust on the
        Preferred Securities and Common Securities that at any time remain outstanding
        in accordance with the terms thereof shall not be reduced as a result of
        any
        Additional Taxes arising from such Tax Event (additional such amounts payable
        by
        the Company to the Trust, the “Additional Tax
        Sums”).  Whenever in this Indenture or the Securities there is a
        reference in any context to the payment of principal of or interest on the
        Securities, such mention shall be deemed to include mention of the payments
        of
        the Additional Tax Sums provided for in this Section 10.5 to the extent
        that, in such context, Additional Tax Sums are, were or would be payable
        in
        respect thereof pursuant to the provisions of this Section 10.5 and
        express mention of the payment of Additional Tax Sums (if applicable) in
        any
        provisions hereof shall not be construed as excluding Additional Tax Sums
        in
        those provisions hereof where such express mention is not made.

       

      SECTION
        10.6.  Additional
        Covenants.

       

      (a)  The
        Company covenants and agrees with each Holder of Securities that if an Event
        of
        Default shall have occurred and be continuing, it shall not (i) declare or
        pay
        any dividends or distributions on, or redeem, purchase, acquire or make a
        liquidation payment with respect to, any of the Company’s Equity Interests,
        except only to the extent necessary to maintain its status as a real estate
        investment trust under the Code, provided such distributions to maintain
        its
        status as a real estate investment trust under the Code may not be made in
        any
        event if there has occurred (x) an Event of Default described in clauses
        (a),
        (b), (e) or (f) of Section 5.1, (y) any Event of Default with respect to
        which
        acceleration of principal has been triggered pursuant to Section 5.2, or
        (z) an
        Event of Default triggered by a breach of Section 10.9, (ii) vote in favor
        of or
        permit or otherwise allow any of its Subsidiaries to declare or pay any
        dividends or distributions on, or redeem, purchase, acquire or make a
        liquidation payment with respect to or otherwise retire, any shares of any
        such
        Subsidiary’s preferred stock or other Equity Interests entitling the holders
        thereof to a stated rate of return (for the avoidance of doubt, whether such
        preferred stock or other Equity Interests are perpetual or otherwise), or
        (iii)
        make any payment of principal of or any interest or premium, if any, on or
        repay, repurchase or redeem any debt securities of the Company that rank
        pari passu in all respects with or junior in interest to the
        Securities.

       

      (b)  The
        Company also covenants with each Holder of Securities (i) to hold, directly
        or
        indirectly, one hundred percent (100%) of the Common Securities of the Trust,
        provided, that any permitted successor of the Company hereunder may
        succeed to the Company’s ownership of such Common Securities, (ii) as holder of
        such Common Securities, not to voluntarily dissolve, wind-up or liquidate
        the
        Trust other than (A) in connection with a distribution of the Securities
        to the
        holders of the Preferred Securities in liquidation of the Trust or (B) in
        connection with certain mergers, consolidations or amalgamations permitted
        by
        the Trust Agreement and (iii) to use its reasonable commercial efforts,
        consistent with the terms and provisions of the Trust Agreement, to cause
        the
        Trust to continue to be taxable as a grantor trust and not as a corporation
        for
        United States Federal income tax purposes.

       

      (c)  The
        Company also agrees to use its reasonable efforts to meet the requirements
        to
        qualify, effective for the fiscal year ending December 31, 2007 and all future
        fiscal years, as a real estate investment trust under the Internal Revenue
        Code
        of 1986, as amended.

       

      (d)  The
        Company shall notify in writing, within ten (10) Business Days after the
        occurrence thereof, the Trustee and each holder of Preferred Securities of
        the
        occurrence of a Change of Control (the “Change of Control
        Notice”).  If the Company and the Trustee shall have received,
        within thirty (30) days after delivering the holders of the Preferred Securities
        of the Change of Control Notice, written notice from any holder of Preferred
        Securities of its election to cause the Defeasance or redemption, as applicable,
        of the Securities as provided in this Section 10.6(d) (the “Change of
        Control Election”), then the Company shall (i) if such Change of Control
        Election is received on or prior to the Interest Payment Date in July 2012,
        cause Article XIII to be applied to the Electing Securities or (ii) if
        such Change of Control Election is received after the Interest Payment Date
        in
        July 2012, redeem the Electing Securities pursuant to Section
        11.1(b).

       

      (e)  The
        Company covenants and agrees with each Holder of Securities and each Holder
        of
        Preferred Securities that if an Event of Default shall have occurred and
        be
        continuing, the Company shall afford to each such Holder and its counsel,
        accountants and other representatives full access to the books and records
        of
        the Company in order that any such Holder may have full opportunity to make
        such
        investigations as such Holder may desire to make of the affairs of the Seller,
        provided, that any such investigation shall be conducted in such a
        manner as not to interfere unreasonably with the operation of the businesses
        of
        the Company.

       

      SECTION
        10.7.  Waiver
        of Covenants.

       

      The
        Company may omit in any particular instance to comply with any covenant or
        condition contained in Section 10.6 if, before or after the time for such
        compliance, the Holders of at least a majority in aggregate principal amount
        of
        the Outstanding Securities shall, by Act of such Holders, and at least a
        majority of the aggregate Liquidation Amount of the Preferred Securities
        then
        outstanding, by consent of such holders, either waive such compliance in
        such
        instance or generally waive compliance with such covenant or condition, but
        no
        such waiver shall extend to or affect such covenant or condition except to
        the
        extent so expressly waived, and, until such waiver shall become effective,
        the
        obligations of the Company in respect of any such covenant or condition shall
        remain in full force and effect.

       

      SECTION
        10.8.  Treatment
        of Securities.

       

      The
        Company will treat the Securities as indebtedness, and the amounts, other
        than
        payments of principal, payable in respect of the principal amount of such
        Securities as interest, for all United States federal income tax
        purposes.  All payments in respect of the Securities will be made free
        and clear of United States withholding tax to any beneficial owner thereof
        that
        has provided an Internal Revenue Service Form W-9 or W-8BEN (or any substitute
        or successor form) establishing its U.S. or non-U.S. status for United States
        federal income tax purposes, or any other applicable form establishing a
        complete exemption from United States withholding tax.

       

      SECTION
        10.9.  Financial
        Covenants.

       

      (a)  The
        Company shall not permit Tangible Net Worth, at any time, to be less than
        the
        sum of (i) $225,000,000, plus (ii) 50% of all proceeds of Equity
        Interests issued by the Company after the date hereof.

       

      (b)  The
        Company shall not permit, at any time, the ratio of (i) EBITDA for the period
        consisting of the preceding four (4) fiscal quarters ending on, or most recently
        ended prior to, such time to (ii) Interest Expense for such period, to be
        less
        than 2.50 to 1.

       

      (c)  The
        Company shall not permit, at any time, the ratio of (i) Total Debt to (ii)
        Tangible Net Worth, to exceed 0.5 to 1.

       

      SECTION
        10.10.  Delivery
        of Information.  For so long as any of the Securities remain
        Outstanding, the Company shall deliver to Taberna all information delivered
        by
        the Company to the lenders pursuant to the Company’s senior credit facility, if
        any, and, from time to time, such other financial data and information in
        the
        possession of the Company as Taberna may reasonably request.

       

      SECTION
        10.11.  Inspection
        of Books and Records.  If an Event of Default has occurred and is
        continuing, the Company shall permit Taberna to examine the books and records
        of
        account of the Company and its Subsidiaries (and to make copies thereof and
        extracts therefrom) and to discuss the affairs, finances and accounts of
        such
        Persons with, and to be advised as to the same by, its officers, all at such
        reasonable times and intervals during normal business hours as Taberna may
        reasonably request, at the expense of Taberna, provided, that should
        the Company be in default under this Indenture, all expenses incurred in
        exercising the rights granted to Taberna under this Section 10.11 shall
        be borne by the Company.  Taberna shall use good faith efforts to
        coordinate such inspections so as to minimize the interference with and
        disruption to the Company’s normal business operations.

       

       

      ARTICLE
        XI

       

       

      

       

       

      Redemption
        of Securities

       

      SECTION
        11.1.  Optional
        Redemption and Mandatory Redemption.

       

      (a)  The
        Company may, at its option, on any Interest Payment Date, on or after
 July 30, 2012, redeem the Securities in whole at any time
        or in part from time to time, at a Redemption Price equal to one hundred
        percent
        (100%) of the principal amount thereof (or of the redeemed portion thereof,
        as
        applicable), together, in the case of any such redemption, with accrued and
        unpaid interest, including any Additional Interest, through but excluding
        the
        date fixed as the Redemption Date and, if such redemption shall occur prior
        to
        the expiration of the Fixed Rate Period, Breakage Costs, if any, less Breakage
        Gains, if any (the “Optional Redemption Price”).

       

      (b)  The
        Company shall, upon receipt of a Change of Control Election with respect
        to a
        Change of Control which occurs after the Interest Payment Date in July 2012,
        redeem the Electing Securities in whole on a date no more than thirty (30)
        days
        after receipt of the Change of Control Election, at a Redemption Price equal
        to
        one hundred percent (100%) of the outstanding principal amount thereof,
        together, in the case of any such redemption, with accrued and unpaid interest,
        including any Additional Interest, to but excluding the date fixed as the
        Redemption Date and, if such redemption shall occur prior to the expiration
        of
        the Fixed Rate Period, Breakage Costs, less Breakage Gains, if any (the
“Mandatory Redemption Price”).

       

      SECTION
        11.2.  Special
        Event Redemption.

       

      Prior
        to
        July 30, 2012, upon the occurrence and during the continuation of a Special
        Event, the Company may, at its option, redeem the Securities, in whole but
        not
        in part, at a Redemption Price equal to one hundred seven and one half percent
        (107.5%) of the principal amount thereof, together, in the case of any such
        redemption, with accrued interest, including any Additional Interest, through
        but excluding the date fixed as the Redemption Date (the “Special Redemption
        Price”).

       

      SECTION
        11.3.  Election
        to Redeem; Notice to Trustee.

       

      The
        election of the Company to redeem any Securities, in whole or in part, shall
        be
        evidenced by or pursuant to a Board Resolution.  In case of any
        redemption at the election of the Company, the Company shall, not less than
        forty-five (45) days and not more than seventy-five (75) days prior to the
        Redemption Date (unless a shorter notice shall be satisfactory to the Trustee),
        notify the Trustee and the Property Trustee under the Trust Agreement in
        writing
        of such date and of the principal amount of the Securities to be redeemed
        and
        provide the additional information required to be included in the notice
        or
        notices contemplated by Section 11.5.  In the case of any
        redemption of Securities, in whole or in part, (a) prior to the expiration
        of
        any restriction on such redemption provided in this Indenture or the Securities
        or (b) pursuant to an election of the Company which is subject to a condition
        specified in this Indenture or the Securities, the Company shall furnish
        the
        Trustee with an Officer’s Certificate and an Opinion of Counsel evidencing
        compliance with such restriction or condition.

       

      SECTION
        11.4.  Selection
        of Securities to be Redeemed.

       

      (a)  If
        less
        than all the Securities are to be redeemed, the particular Securities to
        be
        redeemed shall be selected and redeemed on a pro rata basis not more than
        sixty
        (60) days prior to the Redemption Date by the Trustee from the Outstanding
        Securities not previously called for redemption, provided, that the
        unredeemed portion of the principal amount of any Security shall be in an
        authorized denomination (which shall not be less than the minimum authorized
        denomination) for such Security.

       

      (b)  The
        Trustee shall promptly notify the Company in writing of the Securities selected
        for redemption and, in the case of any Securities selected for partial
        redemption, the principal amount thereof to be redeemed.  For all
        purposes of this Indenture, unless the context otherwise requires, all
        provisions relating to the redemption of Securities shall relate, in the
        case of
        any Security redeemed or to be redeemed only in part, to the portion of the
        principal amount of such Security that has been or is to be
        redeemed.

       

      (c)  The
        provisions of paragraphs (a) and (b) of this Section 11.4 shall not apply
        with respect to any redemption affecting only a single Security, whether
        such
        Security is to be redeemed in whole or in part.  In the case of any
        such redemption in part, the unredeemed portion of the principal amount of
        the
        Security shall be in an authorized denomination (which shall not be less
        than
        the minimum authorized denomination) for such Security.

       

      SECTION
        11.5.  Notice
        of Redemption.

       

      (a)  Notice
        of
        redemption shall be given by the Trustee by first class mail, postage prepaid,
        mailed not later than the thirtieth (30th) day,
        and not
        earlier than the sixtieth (60th) day,
        prior to the
        applicable Redemption Date or Maturity to each Holder of Securities to be
        redeemed, in whole or in part (unless a shorter notice shall be satisfactory
        to
        the Property Trustee under the related Trust Agreement).

       

      (b)  With
        respect to Securities to be redeemed, in whole or in part, each notice of
        redemption shall state:

       

      (i)  the
        applicable Redemption Date;

       

      (ii)  the
        Redemption Price or, if the Redemption Price cannot be calculated prior to
        the
        time the notice is required to be sent, the estimate of the Redemption Price,
        as
        calculated by the Company, together with a statement that it is an estimate
        and
        that the actual Redemption Price will be calculated on the fifth Business
        Day
        prior to the Redemption Date (and if an estimate is provided, a further notice
        shall be sent of the actual Redemption Price on the date that such Redemption
        Price is calculated);

       

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

       

      (iv)  that
        on
        the Redemption Date, the Redemption Price will become due and payable upon
        each
        such Security or portion thereof, and that any interest (including any
        Additional Interest) on such Security or such portion, as the case may be,
        shall
        cease to accrue on and after said date;

       

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

       

      (vi)  that
        such
        notice of redemption may be withdrawn by the Company, no later than ten (10)
        Business Days prior to the applicable Redemption Date, if certain conditions
        set
        forth in this Indenture are not met.

       

      (c)  Notice
        of
        redemption of Securities to be redeemed, in whole or in part, at the election
        of
        the Company shall be given by the Company or, at the Company’s request, by the
        Trustee in the name and at the expense of the Company and shall be
        irrevocable.  The notice if mailed in the manner provided above shall
        be conclusively presumed to have been duly given, whether or not the Holder
        receives such notice.  In any case, a failure to give such notice by
        mail or any defect in the notice to the Holder of any Security designated
        for
        redemption as a whole or in part shall not affect the validity of the
        proceedings for the redemption of any other Security.

       

      SECTION
        11.6.  Deposit
        of Redemption Price.

       

      Prior
        to
        10:00 a.m., New York City time, on the Redemption Date specified in the notice
        of redemption given as provided in Section 11.5, the Company will deposit
        with the Trustee or with one or more Paying Agents an amount of money sufficient
        to pay the Redemption Price of, and any accrued interest (including any
        Additional Interest) on, all the Securities (or portions thereof) that are
        to be
        redeemed on that date.

       

      SECTION
        11.7.  Payment
        of Securities Called for Redemption.

       

      (a)  If
        any
        notice of redemption has been given as provided in Section 11.5, the
        Securities or portion of Securities with respect to which such notice has
        been
        given shall become due and payable on the date and at the place or places
        stated
        in such notice at the applicable Redemption Price, together with accrued
        interest (including any Additional Interest) to the Redemption
        Date.  On presentation and surrender of such Securities at a Place of
        Payment specified in such notice, the Securities or the specified portions
        thereof shall be paid and redeemed by the Company at the applicable Redemption
        Price, together with accrued interest (including any Additional Interest)
        to the
        Redemption Date.

       

      (b)  Upon
        presentation of any Security redeemed in part only, the Company shall execute
        and the Trustee shall authenticate and deliver to the Holder thereof, at
        the
        expense of the Company, a new Security or Securities, of authorized
        denominations, in aggregate principal amount equal to the unredeemed portion
        of
        the Security so presented and having the same Original Issue Date, Stated
        Maturity and terms.

       

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

       

       

      ARTICLE
        XII

       

       

      

       

       

      Subordination
        of Securities

       

      SECTION
        12.1.  Securities
        Subordinate to Senior Debt.

       

      The
        Company covenants and agrees, and each Holder of a Security, by its acceptance
        thereof, likewise covenants and agrees, that, to the extent and in the manner
        hereinafter set forth in this Article XII, the payment of the principal
        of and any premium and interest (including any Additional Interest) on each
        and
        all of the Securities are hereby expressly made subordinate and subject in
        right
        of payment to the prior payment in full of all Senior Debt.

       

      SECTION
        12.2.  No
        Payment When Senior Debt in Default; Payment Over of Proceeds Upon Dissolution,
        Etc.

       

      (a)  In
        the
        event and during the continuation of any default by the Company in the payment
        of any principal of or any premium or interest on any Senior Debt (following
        any
        grace period, if applicable) when the same becomes due and payable, whether
        at
        maturity or at a date fixed for prepayment or by declaration of acceleration
        or
        otherwise, then, upon written notice of such default to the Company by the
        holders of such Senior Debt or any trustee therefor, unless and until such
        default shall have been cured or waived or shall have ceased to exist, no
        direct
        or indirect payment (in cash, property, securities, by set-off or otherwise)
        shall be made or agreed to be made on account of the principal of or any
        premium
        or interest (including any Additional Interest) on any of the Securities,
        or in
        respect of any redemption, repayment, retirement, purchase or other acquisition
        of any of the Securities.

       

      (b)  In
        the
        event of a bankruptcy, insolvency or other proceeding described in clause
        (d) or
        (e) of the definition of Event of Default (each such event, if any, herein
        sometimes referred to as a “Proceeding”), all Senior Debt (including
        any interest thereon accruing after the commencement of any such proceedings)
        shall first be paid in full before any payment or distribution, whether in
        cash,
        securities or other property, shall be made to any Holder of any of the
        Securities on account thereof.  Any payment or distribution, whether
        in cash, securities or other property (other than securities of the Company
        or
        any other entity provided for by a plan of reorganization or readjustment
        the
        payment of which is subordinate, at least to the extent provided in these
        subordination provisions with respect to the indebtedness evidenced by the
        Securities, to the payment of all Senior Debt at the time outstanding and
        to any
        securities issued in respect thereof under any such plan of reorganization
        or
        readjustment), which would otherwise (but for these subordination provisions)
        be
        payable or deliverable in respect of the Securities shall be paid or delivered
        directly to the holders of Senior Debt in accordance with the priorities
        then
        existing among such holders until all Senior Debt (including any interest
        thereon accruing after the commencement of any Proceeding) shall have been
        paid
        in full.

       

      (c)  In
        the
        event of any Proceeding, after payment in full of all sums owing with respect
        to
        Senior Debt, the Holders of the Securities, together with the holders of
        any
        obligations of the Company ranking on a parity with the Securities, shall
        be
        entitled to be paid from the remaining assets of the Company the amounts
        at the
        time due and owing on account of unpaid principal of and any premium and
        interest (including any Additional Interest) on the Securities and such other
        obligations before any payment or other distribution, whether in cash, property
        or otherwise, shall be made on account of any Equity Interests or any
        obligations of the Company ranking junior to the Securities and such other
        obligations.  If, notwithstanding the foregoing, any payment or
        distribution of any character on any security, whether in cash, securities
        or
        other property (other than securities of the Company or any other entity
        provided for by a plan of reorganization or readjustment the payment of which
        is
        subordinate, at least to the extent provided in these subordination provisions
        with respect to the indebtedness evidenced by the Securities, to the payment
        of
        all Senior Debt at the time outstanding and to any securities issued in respect
        thereof under any such plan of reorganization or readjustment) shall be received
        by the Trustee or any Holder in contravention of any of the terms hereof
        and
        before all Senior Debt shall have been paid in full, such payment or
        distribution or security shall be received in trust for the benefit of, and
        shall be paid over or delivered and transferred to, the holders of the Senior
        Debt at the time outstanding in accordance with the priorities then existing
        among such holders for application to the payment of all Senior Debt remaining
        unpaid, to the extent necessary to pay all such Senior Debt (including any
        interest thereon accruing after the commencement of any Proceeding) in
        full.  In the event of the failure of the Trustee or any Holder to
        endorse or assign any such payment, distribution or security, each holder
        of
        Senior Debt is hereby irrevocably authorized to endorse or assign the
        same.

       

      (d)  The
        Trustee and the Holders, at the expense of the Company, shall take such
        reasonable action (including the delivery of this Indenture to an agent for
        any
        holders of Senior Debt or consent to the filing of a financing statement
        with
        respect hereto) as may, in the opinion of counsel designated by the holders
        of a
        majority in principal amount of the Senior Debt at the time outstanding,
        be
        necessary or appropriate to assure the effectiveness of the subordination
        effected by these provisions.

       

      (e)  The
        provisions of this Section 12.2 shall not impair any rights, interests,
        remedies or powers of any secured creditor of the Company in respect of any
        security interest the creation of which is not prohibited by the provisions
        of
        this Indenture.

       

      (f)  The
        securing of any obligations of the Company, otherwise ranking on a parity
        with
        the Securities or ranking junior to the Securities, shall not be deemed to
        prevent such obligations from constituting, respectively, obligations ranking
        on
        a parity with the Securities or ranking junior to the Securities.

       

      SECTION
        12.3.  Payment
        Permitted If No Default.

       

      Nothing
        contained in this Article XII or elsewhere in this Indenture or in any of
        the Securities shall prevent (a) the Company, at any time, except during
        the
        pendency of the conditions described in paragraph (a) of Section 12.2 or
        of any Proceeding referred to in Section 12.2, from making payments at
        any time of principal of and any premium or interest (including any Additional
        Interest) on the Securities or (b) the application by the Trustee of any
        moneys
        deposited with it hereunder to the payment of or on account of the principal
        of
        and any premium or interest (including any Additional Interest) on the
        Securities or the retention of such payment by the Holders, if, at the time
        of
        such application by the Trustee, it did not have knowledge (in accordance
        with
Section 12.8) that such payment would have been prohibited by the
        provisions of this Article XII, except as provided in Section
        12.8.

       

      SECTION
        12.4.  Subrogation
        to Rights of Holders of Senior Debt.

       

      Subject
        to the payment in full of all amounts due or to become due on all Senior
        Debt,
        or the provision for such payment in cash or cash equivalents or otherwise
        in a
        manner satisfactory to the holders of Senior Debt, the Holders of the Securities
        shall be subrogated to the extent of the payments or distributions made to
        the
        holders of such Senior Debt pursuant to the provisions of this Article
        XII (equally and ratably with the holders of all indebtedness of the Company
        that by its express terms is subordinated to Senior Debt of the Company to
        substantially the same extent as the Securities are subordinated to the Senior
        Debt and is entitled to like rights of subrogation by reason of any payments
        or
        distributions made to holders of such Senior Debt) to the rights of the holders
        of such Senior Debt to receive payments and distributions of cash, property
        and
        securities applicable to the Senior Debt until the principal of and any premium
        and interest (including any Additional Interest) on the Securities shall
        be paid
        in full.  For purposes of such subrogation, no payments or
        distributions to the holders of the Senior Debt of any cash, property or
        securities to which the Holders of the Securities or the Trustee would be
        entitled except for the provisions of this Article XII, and no payments
        made pursuant to the provisions of this Article XII to the holders of
        Senior Debt by Holders of the Securities or the Trustee, shall, as among
        the
        Company, its creditors other than holders of Senior Debt, and the Holders
        of the
        Securities, be deemed to be a payment or distribution by the Company to or
        on
        account of the Senior Debt.

       

      SECTION
        12.5.  Provisions
        Solely to Define Relative Rights.

       

      The
        provisions of this Article XII are and are intended solely for the
        purpose of defining the relative rights of the Holders of the Securities
        on the
        one hand and the holders of Senior Debt on the other hand.  Nothing
        contained in this Article XII or elsewhere in this Indenture or in the
        Securities is intended to or shall (a) impair, as between the Company and
        the
        Holders of the Securities, the obligations of the Company, which are absolute
        and unconditional, to pay to the Holders of the Securities the principal
        of and
        any premium and interest (including any Additional Interest) on the Securities
        as and when the same shall become due and payable in accordance with their
        terms, (b) affect the relative rights against the Company of the Holders
        of the
        Securities and creditors of the Company other than their rights in relation
        to
        the holders of Senior Debt or (c) prevent the Trustee or the Holder of any
        Security (or to the extent expressly provided herein, the holder of any
        Preferred Security) from exercising all remedies otherwise permitted by
        applicable law upon default under this Indenture, including filing and voting
        claims in any Proceeding, subject to the rights, if any, under this Article
        XII of the holders of Senior Debt to receive cash, property and securities
        otherwise payable or deliverable to the Trustee or such Holder.

       

      SECTION
        12.6.  Trustee
        to Effectuate Subordination.

       

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

       

      SECTION
        12.7.  No
        Waiver of Subordination Provisions.

       

      (a)  No
        right
        of any present or future holder of any Senior Debt to enforce subordination
        as
        herein provided shall at any time in any way be prejudiced or impaired by
        any
        act or failure to act on the part of the Company or by any act or failure
        to
        act, in good faith, by any such holder, or by any noncompliance by the Company
        with the terms, provisions and covenants of this Indenture, regardless of
        any
        knowledge thereof that any such holder may have or be otherwise charged
        with.

       

      (b)  Without
        in any way limiting the generality of paragraph (a) of this Section 12.7,
        the holders of Senior Debt may, at any time and from to time, without the
        consent of or notice to the Trustee or the Holders of the Securities, without
        incurring responsibility to such Holders of the Securities and without impairing
        or releasing the subordination provided in this Article XII or the
        obligations hereunder of such Holders of the Securities to the holders of
        Senior
        Debt, 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 Debt, or otherwise amend or supplement in any manner Senior Debt or
        any
        instrument evidencing the same or any agreement under which Senior Debt is
        outstanding, (ii) sell, exchange, release or otherwise deal with any property
        pledged, mortgaged or otherwise securing Senior Debt, (iii) release any Person
        liable in any manner for the payment of Senior Debt and (iv) exercise or
        refrain
        from exercising any rights against the Company and any other
        Person.

       

      SECTION
        12.8.  Notice
        to Trustee.

       

      (a)  The
        Company shall give prompt written notice to a Responsible Officer of the
        Trustee
        of any fact known to the Company that would prohibit the making of any payment
        to or by the Trustee in respect of the Securities.  Any such notice
        shall be sent to 601 Travis, 16th Floor,
        Houston,
        Texas 77002 Attn: Global Corporate Trust – Vestin Realty Mortgage II,
        Inc.  Notwithstanding the provisions of this Article XII or any
        other provision of this Indenture, the Trustee shall not be charged with
        knowledge of the existence of any facts that would prohibit the making of
        any
        payment to or by the Trustee in respect of the Securities, unless and until
        a
        Responsible Officer of the Trustee shall have received written notice thereof
        from the Company or a holder of Senior Debt or from any trustee, agent or
        representative therefor; provided, that if the Trustee shall not have
        received the notice provided for in this Section 12.8 at least two
        Business Days prior to the date upon which by the terms hereof any monies
        may
        become payable for any purpose (including, the payment of the principal of
        and
        any premium on or interest (including any Additional Interest) on any Security),
        then, anything herein contained to the contrary notwithstanding, the Trustee
        shall have full power and authority to receive such monies and to apply the
        same
        to the purpose for which they were received and shall not be affected by
        any
        notice to the contrary that may be received by it within two Business Days
        prior
        to such date.

       

      (b)  The
        Trustee shall be entitled to rely on the delivery to it of a written notice
        by a
        Person representing himself or herself to be a holder of Senior Debt (or
        a
        trustee, agent, representative or attorney-in-fact therefor) to establish
        that
        such notice has been given by a holder of Senior Debt (or a trustee, agent,
        representative or attorney-in-fact therefor).  In the event that the
        Trustee determines in good faith that further evidence is required with respect
        to the right of any Person as a holder of Senior Debt to participate in any
        payment or distribution pursuant to this Article XII, the Trustee may
        request such Person to furnish evidence to the reasonable satisfaction of
        the
        Trustee as to the amount of Senior Debt held by such Person, the extent to
        which
        such Person is entitled to participate in such payment or distribution and
        any
        other facts pertinent to the rights of such Person under this Article
        XII, and if such evidence is not furnished, the Trustee may defer any
        payment to such Person pending judicial determination as to the right of
        such
        Person to receive such payment.

       

      SECTION
        12.9.  Reliance
        on Judicial Order or Certificate of Liquidating Agent.

       

      Upon
        any
        payment or distribution of assets of the Company referred to in this Article
        XII, the Trustee and the Holders of the Securities shall be entitled to
        conclusively rely upon any order or decree entered by any court of competent
        jurisdiction in which such Proceeding is pending, or a certificate of the
        trustee in bankruptcy, receiver, liquidating trustee, custodian, assignee
        for
        the benefit of creditors, agent or other Person making such payment or
        distribution, delivered to the Trustee or to the Holders of Securities, for
        the
        purpose of ascertaining the Persons entitled to participate in such payment
        or
        distribution, the holders of the Senior Debt and other indebtedness of the
        Company, the amount thereof or payable thereon, the amount or amounts paid
        or
        distributed thereon and all other facts pertinent thereto or to this Article
        XII.

       

      SECTION
        12.10.  Trustee
        Not Fiduciary for Holders of Senior Debt.

       

      The
        Trustee, in its capacity as trustee under this Indenture, shall not be deemed
        to
        owe any fiduciary duty to the holders of Senior Debt and shall not be liable
        to
        any such holders if it shall in good faith mistakenly pay over or distribute
        to
        Holders of Securities or to the Company or to any other Person cash, property
        or
        securities to which any holders of Senior Debt shall be entitled by virtue
        of
        this Article XII or otherwise.

       

      SECTION
        12.11.  Rights
        of Trustee as Holder of Senior Debt; Preservation of Trustee’s
        Rights.

       

      The
        Trustee in its individual capacity shall be entitled to all the rights set
        forth
        in this Article XII with respect to any Senior Debt that may at any time
        be held by it, to the same extent as any other holder of Senior Debt, and
        nothing in this Indenture shall deprive the Trustee of any of its rights
        as such
        holder.

       

      SECTION
        12.12.  Article
        Applicable to Paying Agents.

       

      If
        at any
        time any Paying Agent other than the Trustee shall have been appointed by
        the
        Company and be then acting hereunder, the term “Trustee” as used in
        this Article XII shall in such case (unless the context otherwise
        requires) be construed as extending to and including such Paying Agent within
        its meaning as fully for all intents and purposes as if such Paying Agent
        were
        named in this Article XII in addition to or in place of the
        Trustee.  For the avoidance of doubt, the Company shall not be
        permitted to appoint itself or any Affiliate as a Paying Agent
        hereunder.

       

       

      ARTICLE
        XIII

       

      DEFEASANCE

      SECTION
        13.1.  Defeasance
        and Discharge.

       

      Upon
        the
        exercise of the option provided in Section 10.6(d) by a holder of
        Preferred Securities as a result of a Change of Control which occurs on or
        prior
        to July 30, 2012 to have this Section 13.1 applied to the Electing
        Securities, the Company shall, within thirty (30) days following its receipt
        of
        the Change of Control Election, satisfy the conditions set forth in Section
        13.2.  The Company shall be deemed to have been discharged from
        its obligations with respect to the Electing Securities as provided in this
        Section 13.1 on and after the date the conditions set forth in Section
        13.2 are satisfied (hereinafter called
“Defeasance”).  For this purpose, such Defeasance means that
        the Company shall be deemed to have paid and discharged the entire indebtedness
        represented by the Electing Securities and to have satisfied all of its other
        obligations under such Electing Securities and this Indenture insofar as
        such
        Electing Securities are concerned (and the Trustee, upon request and at the
        expense of the Company, shall execute proper instruments acknowledging the
        same), subject to the following, which shall survive until otherwise terminated
        or discharged hereunder (a) the rights of Holders of the Electing Securities
        to
        receive, solely from the trust fund described in Section 13.2 and as more
        fully set forth in such Section 13.2, payments in respect of the
        principal of, premium, if any, and interest on the Electing Securities when
        payments are due, (b) the Company’s obligations with respect to the Electing
        Securities under Sections2.4, 3.5, 3.6, 10.2
        and any Additional Tax Sums under Section 10.5, (c) the rights, powers,
        trusts, duties and immunities of the Trustee hereunder and (d) this Article
        XIII.

      SECTION
        13.2.  Conditions
        to Defeasance.

       

      The
        following shall be the conditions to application of Section 13.1 to the
        Electing Securities:

      (a)  The
        Company shall irrevocably have deposited or caused to be deposited with the
        Trustee (or another trustee that satisfies the requirements contemplated
        by
Section 6.1 and agrees to comply with the provisions of this Article
        XIII applicable to it) as trust funds in trust for the purpose of making
        the
        following payments, specifically pledged as security for, and dedicated solely
        to, the benefit of the Holders of Electing Securities, (i) money in an amount
        in
        Dollars, (ii) Government Obligations that through the scheduled payment of
        principal and interest in respect thereof in accordance with their terms
        will
        provide, not later than one day before the due date of any payment, money
        in an
        amount in Dollars, or (iii) a combination thereof, in each case sufficient,
        in
        the opinion of a nationally recognized firm of independent public accountants
        expressed in a written certification thereof delivered to the Trustee, to
        pay
        and discharge, and which shall be applied by the Trustee (or any such other
        qualifying Trustee) to pay and discharge, one hundred percent (100%) of the
        principal amount of the Electing Securities on July 30, 2012 (the
“Defeasance Maturity Date”) plus interest on the Electing Securities
        due and payable on the Interest Payment Dates occurring prior to and including
        the Defeasance Maturity Date and Breakage Costs, if any, in accordance with
        the
        terms of this Indenture and the Electing Securities.

       

      (b)  Such
        Defeasance shall not cause the Trustee to have a conflicting interest within
        the
        meaning of the Trust Indenture Act.

       

      (c)  Such
        Defeasance shall not result in the trust arising from such deposit constituting
        an “investment company” within the meaning of the Investment Company Act of
        1940, unless such trust shall be qualified or exempt from regulation
        thereunder.

       

      (d)  The
        Company shall have delivered to the Trustee and Officer’s Certificate and an
        Opinion of Counsel, each stating that all conditions precedent with respect
        to
        such Defeasance have been complied with.

       

      SECTION
        13.3.  Deposited
        Money and U.S. Government Obligations to be Held in Trust; Other Miscellaneous
        Provisions.

       

      Subject
        to the provisions of Section 10.2(d), all money and Government
        Obligations (including the proceeds thereof) deposited with the Trustee or
        other
        qualifying trustee (solely for purposes of this Section 13.3 and
Section 13.4, the Trustee and any such other trustee are referred to
        collectively as the “Trustee”) pursuant to Section 13.2 in
        respect of the Electing Securities shall be held in trust and applied by
        the
        Trustee, in accordance with the provisions of the Electing Securities and
        this
        Indenture, to the payment, either directly or through any such Paying Agent
        (including the Company acting as its own Paying Agent) as the Trustee may
        determine, to the Holders of the Electing Securities, of all sums due and
        to
        become due thereon in respect of principal, premium, if any, and interest,
        but
        money so held in trust need not be segregated from other funds except to
        the
        extent required by law.

       

      The
        Company shall pay and indemnify the Trustee against any tax, fee or other
        charge
        imposed on or assessed against the Government Obligations deposited pursuant
        to
Section 13.2 or the principal and interest received in respect thereof
        other than any such tax, fee or other charge that by law is for the account
        of
        the Holders of Electing Securities.

       

      Anything
        in this Article XIII to the contrary notwithstanding, the Trustee shall
        deliver or pay to the Company from time to time upon Company Request any
        money
        or Government Obligations held by it as provided in Section 13.2 with
        respect to the Electing Securities that, in the opinion of a nationally
        recognized firm of independent public accountants expressed in a written
        certification thereof delivered to the Trustee, are in excess of the amount
        thereof that would then be required to be deposited to effect an equivalent
        Defeasance with respect to the Electing Securities.

      SECTION
        13.4.  Reinstatement.

       

      If
        the
        Trustee or the Paying Agent is unable to apply any money in accordance with
        this
Article XIII with respect to the electing Securities 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 Electing Securities shall be revived and reinstated
        as
        though no deposit had occurred pursuant to this Article XIII with respect
        to Electing Securities until such time as the Trustee or Paying Agent is
        permitted to apply all money held in trust pursuant to Section 13.3 with
        respect to the Electing Securities in accordance with this Article XIII;
provided, however, that if the Company makes any payment of principal
        of, premium, if any, or interest on any Electing Security following the
        reinstatement of its obligations, the Company shall be subrogated to the
        rights
        of the Holders of Electing Securities to receive such payment from the money
        so
        held in trust.

      *
        * * *

       

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

       

      *
        * * *

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

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

       

      
        	
                 

              	
                Vestin
                  Realty Mortgage II, Inc.

              

      

       

      
        	
                 

              	
                By:_________________________________

              

      

       

      
        	
                 

              	
                Name:

              

      

       

      
        	
                 

              	
                Title:

              

      

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

      The
        Bank of New York Trust Company, National Association, as
        Trustee

       

      
        	
                 

              	
                By:_________________________________

              

      

       

      
        	
                 

              	
                Name:

              

      

       

      
        	
                 

              	
                Title:

              

      

       

      

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

                

                    Schedule
              A      
    

        

      

      DETERMINATION
        OF LIBOR

       

      With
        respect to the Securities, the London interbank offered rate (“LIBOR”)
        shall be determined by the Calculation Agent in accordance with the following
        provisions (in each case rounded to the nearest .000001%):

       

      (1)           On
        the second LIBOR Business Day (as defined below) prior to a Distribution
        Date
        after the expiration of the Fixed Rate Period (each such
        day, a “LIBOR Determination Date”), LIBOR for any given security shall
        for the following interest payment period equal the rate (expressed as a
        percentage per annum) for U.S. dollar deposits in Europe, for a three (3)
        month
        period, that appears on Dow Jones Telerate (as defined in the International
        Swaps and Derivatives Association, Inc. 2000 Interest Rate and Currency Exchange
        Definitions) Page 3750, or such other page as may replace such Page 3750,
        as of
        11:00 a.m. (London time) on such LIBOR Determination Date, as reported by
        Bloomberg Financial Market Commodities News or any successor service. If
        such
        rate is superseded on Telerate Page 3750 by a corrected rate before 12:00
        noon
        (London time) on such LIBOR Determination Date, the corrected rate as so
        substituted will be LIBOR for such LIBOR Determination Date.

      (2)           If
        on any LIBOR Determination Date such rate does not appear on Dow Jones Telerate
        Page 3750 (“Telerate Page 3750”) or such other page as may replace such
        Page 3750, the Calculation Agent shall determine the arithmetic mean of the
        offered quotations (expressed as a percentage per annum) of the Reference
        Banks
        (as defined below) to leading banks in the London interbank market for U.S.
        dollar deposits in Europe, for a three (3) month period, for an amount
        determined by the Calculation Agent (but not less than U.S. $1,000,000) by
        reference to requests for quotations as of 11:00 a.m. (London time) on the
        LIBOR
        Determination Date, as reported by Bloomberg Financial Markets Commodities
        News
        or any successor service, made by the Calculation Agent to the Reference
        Banks.
        If on any LIBOR Determination Date at least two of the Reference Banks provide
        such quotations, LIBOR shall equal such arithmetic mean of such quotations.
        If
        on any LIBOR Determination Date only one or none of the Reference Banks provide
        such quotations, LIBOR shall be deemed to be the arithmetic mean of the offered
        quotations (expressed as a percentage per annum) that two (2) leading banks
        in
        The City of New York selected by the Calculation Agent are quoting on the
        relevant LIBOR Determination Date for U.S. dollar deposits in Europe, for
        a
        three (3) month period, for an amount determined by the Calculation Agent
        (but
        not less than U.S. $1,000,000); provided, that if the Calculation Agent
        is required but is unable to determine a rate in accordance with at least
        one of
        the procedures provided above, LIBOR shall be LIBOR as determined on the
        previous LIBOR Determination Date.

      (3)           As
        used herein: “Reference Banks” means four major banks in the London
        interbank market selected by the Calculation Agent; and “LIBOR Business
        Day” means a day (a) on which commercial banks are open for business
        (including dealings in foreign exchange and foreign currency deposits) in
        London
        and (b) is not a Saturday, Sunday or other day on which commercial banking
        institutions in New York, New York or Wilmington, Delaware are authorized
        or
        obligated by law or executive order to be closed.  If the rate that
        appears on Telerate Page 3750 is superseded by a corrected rate before 12:00
        noon (London time) on such any LIBOR Determination Date, the corrected rate
        as
        so substituted will be LIBOR for such LIBOR Determination Date.

      
        
                

                    Schedule
              A-      
    

          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

      Form
        of Officer’s Financial Certificate

       

      The
        undersigned, the [Chairman/Vice Chairman/Chief Executive Officer/President/Vice
        President/Chief Financial Officer/Treasurer/Assistant
        Treasurer], hereby certifies, pursuant to Section 7.3(b) of the Junior
        Subordinated Indenture, dated as of June 22, 2007, among Vestin Realty Mortgage
        II, Inc. (the “Company”) and The Bank of New York Trust Company, National
        Association, as trustee, that, as of [date], [20__], the Company, if applicable,
        and its subsidiaries had the following ratios and balances:

       

      As
        of
        [Quarterly/Annual Financial Date], 20__

      

      
        	 	 
	
                Senior
                  secured indebtedness for borrowed money (“Debt”)

              	
                $_____

              
	
                Senior
                  unsecured Debt

              	
                $_____

              
	
                Subordinated
                  Debt

              	
                $_____

              
	
                Total
                  Debt

              	
                $
                  _____

              
	
                Ratio
                  of (x) senior secured and unsecured Debt to (y) total Debt

              	
                  _____%

              

      

      

      *
        A table
        describing the quarterly report calculation procedures is provided on page
        ___

      [FOR
        FISCAL YEAR END:  Attached hereto are the audited
        consolidated financial statements (including the balance sheet, income statement
        and statement of cash flows, and notes thereto, together with the report
        of the
        independent accountants thereon) of the Company and its consolidated
        subsidiaries for the three years ended [date], 20__ and all required Financial
        Statements (as defined in the Purchase Agreement) for the year ended [date],
        20__]

      [FOR
        FISCAL QUARTER END:  Attached hereto are the unaudited
        consolidated and consolidating financial statements (including the balance
        sheet
        and income statement) of the Company and its consolidated subsidiaries and
        all
        required Financial Statements (as defined in the Purchase Agreement) for
        the
        fiscal quarter ended [date], 20__.]

      The
        financial statements fairly present in all material respects, in accordance
        with
        U.S.  generally accepted accounting principles (“GAAP”), the financial
        position of the Company and its consolidated subsidiaries, and the results
        of
        operations and changes in financial condition as of the date, and for the
        [quarterly] [annual] period ended [date], 20__, and such financial statements
        have been prepared in accordance with GAAP consistently applied throughout
        the
        period involved (except as otherwise noted therein).

      There
        has
        been no monetary default with respect to any indebtedness owed by the Company
        and/or its subsidiaries (other than those defaults cured within 30 days of
        the
        occurrence of the same).

      IN
        WITNESS WHEREOF, the undersigned has executed this Officer’s Financial
        Certificate as of this _____ day of _____________, 20__.

       

      Vestin
        Realty Mortgage II, Inc.

       

      By:________________________________

       

      Name:  _____________________________

       

      Vestin
        Realty Mortgage II, Inc.

       

      8379
        West
        Sunset Road

       

      Las
        Vegas, Nevada 89113

       

      702-227-0965

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