SAXON CAPITAL INC
1ST AMENDMENT TO STOCK OPTION AGRMNT
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<DESCRIPTION>1ST AMENDMENT TO STOCK OPTION AGRMNT
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<TITLE>Exhibit 10.1</TITLE>
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<P ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2><B><U>EXHIBIT 10.1</U></B> </FONT></P>

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<P ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=2><B>FIRST AMENDMENT TO
STOCK OPTIONAGREEMENT <BR>FOR NON-EMPLOYEE DIRECTORS</B> </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;This
First Amendment to the Stock Option Agreement for Non-Employee Directors (this
&#147;Amendment&#148;) is made as of September 4, 2003, by and between Saxon Capital,
Inc., a Delaware corporation (the &#147;Company&#148;) and [Independent Director] (the
&#147;Optionee&#148;). </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;WHEREAS,
the Company and the Optionee are parties to a Stock Option Agreement for Non-Employee
Directors dated as of [__________] (the &#147;Stock Option Agreement&#148;) and desire to
amend the same as set forth herein. </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;NOW
THEREOF, in consideration of the above premises and the mutual covenants contained herein,
the parties hereto agree as follows: </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<I><U>Definitions.</U>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Capitalized
terms used but not defined herein shall have the respective meanings           assigned
thereto in the Stock Option Agreement.</I>  </FONT></P>



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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<I><u>Amendment.</U></I> </FONT></P>




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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Section 2 of the Stock Option
Agreement shall be amended and restated as follows: </FONT></P>

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<TD WIDTH=85%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
SECTION
2. &nbsp;&nbsp; VESTING; RIGHT TO EXERCISE.  </FONT></TD>
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<TD WIDTH=15%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH=85%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Subject
to the conditions set forth in this Agreement, the Shares under this Option vest and may
be exercised as follows: 25% of the Shares under the Option may be exercised on the first
anniversary of the Date of Grant, 25% of the Shares under the Option may be exercised on
the second anniversary of the Date of Grant, 25% of the Shares under the Option may be
exercised on the third anniversary of the Date of Grant, and 25% of the Shares under the
Option may be exercised on the fourth anniversary of the Date of Grant; PROVIDED,
HOWEVER, that all of the Shares under the Option shall vest immediately upon a Change in
Control or Material Corporate Change (as defined in Section 11(m)) and the manner in
which the parties intend to account for the Change in Control or Material Corporate
Change, as the case may be, transaction shall have no effect on the acceleration of such
vesting.  </FONT>
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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>A new Section 11(m) shall be added
and read as follows: </FONT></P>

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<TD WIDTH=15%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH=85%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;MATERIAL
CORPORATE CHANGE&#148; shall mean the date the shareholders of the Company approve any
material modification to the Company&#146;s business purpose, capital requirements,
capital structure or tax structure as evidenced by its election(s) filed with the
Internal Revenue Service.&#148; </FONT>
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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<I><U>Miscellaneous.</U></I> </FONT></P>



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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>This Amendment has been duly
authorized, executed and delivered by the Company and has been duly executed and delivered
by the Optionee and is a legal and binding obligation of the Company and of the Optionee,
enforceable in accordance with its terms. </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>This Amendment shall be construed in
accordance with the laws of the State of Delaware, without reference to Delaware&#146;s
choice of law statutes or decisions. </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Except as specifically amended
hereby, the Stock Option Agreement shall remain in full force and effect. In the event the
terms of the Stock Option Agreement conflict with this Amendment, the terms of this
Amendment shall control. </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Except as otherwise provided herein,
this Amendment contains the entire understanding between the parties, and there are no
other agreements or understandings between the parties with respect to the subject matter
hereof. No alteration or modification hereof shall be valid except by a subsequent written
instrument executed by the parties hereto. </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>This Amendment may be executed in any
number of counterparts, and each such counterpart shall be deemed to be an original
instrument, but all such counterparts together shall constitute only one agreement. Any
facsimile of this instrument shall be considered an original document. </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;IN
WITNESS WHEREOF, the parties have executed this Amendment as of the date and year first
written above. </FONT></P>



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<TD WIDTH=50%><FONT FACE="Times New Roman, Times, Serif" SIZE=2><B>SAXON CAPITAL, INC.</B><BR>
<BR>By: /s/ Michael L. Sawyer<BR>&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;<BR>
Its: <U>Chief Executive Officer</U></font></td>
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<TD WIDTH=50%><FONT FACE="Times New Roman, Times, Serif" SIZE=2><B></B><BR>
<BR>&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;<BR>
 [Optionee]</FONT></TD>
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