Document:

AMENDMENT NO. 1 TO

POOLING AND SERVICING AGREEMENT

among

STRUCTURED ASSET MORTGAGE INVESTMENTS II INC.,

as Depositor

 

WELLS FARGO BANK, NATIONAL ASSOCIATION,

as Trustee

 

and

 

EMC MORTGAGE CORPORATION

 

STRUCTURED ASSET MORTGAGE INVESTMENTS II INC.

Bear Stearns Mortgage Funding Trust 2006-AR1,

Mortgage Pass-Through Certificates, Series 2006-AR1

 

 

Dated as of August 25, 2006

 

 

 

 

This AMENDMENT NO. 1 is made and entered into as of this 25th day of August 2006 to that certain Pooling and Servicing Agreement (the “Agreement”), by and among Structured Asset Mortgage Investments II Inc., as depositor, Wells Fargo Bank, National Association, as trustee and EMC Mortgage Corporation, as sponsor.  

 

SECTION 1. DEFINED TERMS. Unless otherwise amended by the terms of this Amendment No. 1, terms used in this Amendment No. 1 shall have the meanings assigned in the Agreement.

SECTION 2. AMENDMENT TO AGREEMENT. Pursuant to Section 11.02(a)(ii) of the Agreement, the Agreement is hereby amended effective as of the date of the Agreement as follows:

2.1          Article XI is hereby corrected by replacing the second subsection reference "(iv)" in Section 11.02(a) with "(vi)".

SECTION 3. FURTHER AMENDMENTS TO AGREEMENT. Pursuant to amended Section 11.02(a)(vi) of the Agreement, the Agreement is hereby amended effective as of the date of the Agreement as follows:

3.1          The defined term “Account” in Article I of the Agreement is hereby deleted and replaced in its entirety with the following (new language underlined and in bold):

Account:  The Custodial Account, the Adjustable Rate Supplemental Fund, the Distribution Account, the Reserve Fund, the Final Maturity Reserve Account or the Class XP Reserve Account as the context may require.   

Article I of the Agreement is hereby amended by adding the following defined term to Article I:

Adjustable Rate Supplemental Fund: An “outside reserve fund” within the meaning of Treasury Regulation 1.860G-2(h), which is not an asset of any REMIC and which is established and maintained pursuant to Section 4.05.

3.2          The defined term “Interest Funds” in Article I of the Agreement is hereby deleted and replaced in its entirety with the following (new language underlined and in bold):

Interest Funds: With respect to each Loan Group and any Distribution Date, (i) the sum, without duplication, of (a) all scheduled interest collected in respect to the related Mortgage Loans during the related Due Period less the related Servicing Fee and any related amounts to be reimbursed to EMC, the Servicer, the Trustee and the Custodian as provided herein, (b) all Monthly Advances relating to interest with respect to the related Mortgage Loans made on or prior to the related Distribution Account Deposit Date, (c) all Compensating Interest Payments with respect to the related Mortgage Loans and required to be remitted by the Servicer pursuant to this Agreement with respect to such Distribution Date, (d) Liquidation Proceeds with respect to the Mortgage Loans collected during the related Prepayment Period (or, in the case of 

 

 

Subsequent Recoveries, during the related Due Period), to the extent such Liquidation Proceeds relate to interest, less all Nonrecoverable Advances relating to interest and certain expenses, in each case, with respect to the Mortgage Loans in the Related Loan Group, (e) all amounts relating to interest with respect to each Mortgage Loan in the related Loan Group purchased by the Depositor pursuant to Sections 2.02, 2.03 or 3.21 during the related Due Period less all Non-Recoverable Advances relating to interest, (f) all amounts in respect of interest paid by the Depositor pursuant to Section 10.01 allocated to the related Loan Group, in each case to the extent remitted by the Servicer to the Distribution Account pursuant to this Agreement, and (g) the amount of any Principal
Prepayments in full, partial Principal Prepayments, Net Liquidation Proceeds, Repurchase Proceeds and scheduled principal payments, in that order, allocated to the related Loan Group, included in Available Funds for such Distribution Date that are applied in connection with any Deferred Interest in accordance with the definition of Net Deferred Interest to EMC, the Depositor, the Servicer or the Trustee, and (h) with respect to Loan Group I, any amounts deposited in the Adjustable Rate Supplemental Fund and available for distribution to the Group I Certificates on such Distribution Date in accordance with Section 4.05, minus (ii) all amounts required to be reimbursed pursuant to Sections 4.01, 4.03, and 4.04 and 4.05 and allocated to the related Loan Group or as
otherwise set forth in this Agreement.

3.3          Article II of the Agreement is hereby amended by the following clause to the end of subsection 2.01(a)(iv):

	
             
 	
            "and such assets relating to the Group I Mortgage Loans as from time to time may be held by the Trustee in the Adjustable Rate Supplemental Fund for the benefit of the Group I Offered Certificates".
 

 

3.4          Article IV of the Agreement is hereby amended by adding a new Section 4.05 as follows:

	
             
 	
            Section 4.05
 	
            Adjustable Rate Supplemental Fund.
 

(a)           No later than the initial Distribution Date, the Trustee shall establish and maintain, in trust for the benefit of the holders of the Group I Offered Certificates, a segregated trust account or sub-account of a trust account, which shall be titled “Adjustable Rate Supplemental Fund, Wells Fargo Bank, National Association, as Trustee for the benefit of holders of Structured Asset Mortgage Investments II Inc., Bear Stearns Mortgage Funding Trust 2006-AR1, Mortgage Pass-Through Certificates, Series 2006-AR1, Group I Offered Certificates” (the “Adjustable Rate Supplemental Fund”). The Adjustable Rate Supplemental Fund shall be an Eligible Account or a sub-account of an Eligible Account. No later than the initial Distribution Date, the Depositor shall pay to the
Trustee an amount equal to $200,000 which shall be deposited by the Trustee into the Adjustable Rate Supplemental Fund.  Pursuant to Section 6.01, on the initial Distribution Date, amounts on deposit in the Adjustable Rate Supplemental Fund will be withdrawn from the Adjustable Rate Supplemental Fund and paid to the Group I Offered Certificates to the extent that Current Interest on the Group I Offered Certificates on the initial Distribution Date is reduced by application of the related Net Rate Cap on such initial Distribution Date.  The Adjustable Rate 

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Supplemental Fund will be entitled to be replenished on each future Distribution Date from the Interest Funds otherwise payable on such Distribution Date to the Class I-B-IO Certificates, until the Adjustable Rate Supplemental Fund has been replenished to the extent of the amount paid from the Adjustable Rate Supplemental Fund on the initial Distribution Date.  On each future Distribution Date, all amounts on deposit in the Adjustable Rate Supplemental Fund as set forth in the preceding sentence will be distributed to the Depositor or its designee. On the Distribution Date on which the aggregate of the amounts replenished to the Adjustable Rate Supplemental Fund equals $200,000, all amounts then on deposit in the Adjustable Rate Supplemental Fund will be distributed to the Depositor or its designee (as set forth in the preceding sentence), and following such distribution the Adjustable
Rate Supplemental Fund will be terminated.

(b)          The Trustee will invest funds deposited in the Adjustable Rate Supplemental Fund as directed by the Depositor or its designee in writing in Permitted Investments with a maturity date (i) no later than the Business Day immediately preceding the date on which such funds are required to be withdrawn from the Adjustable Rate Supplemental Fund pursuant to this Agreement, if a Person other than the Trustee or an Affiliate of the Trustee is the obligor for such Permitted Investment, or (ii) no later than the date on which such funds are required to be withdrawn from the Adjustable Rate Supplemental Fund pursuant to this Agreement, if the Trustee or an affiliate of the Trustee is the obligor for such Permitted Investment (or, if no written direction is received by the Trustee from the Depositor,
then funds in the Adjustable Rate Supplemental Fund shall remain uninvested). For federal income tax purposes, the Depositor shall be the owner of the Adjustable Rate Supplemental Fund and shall report all items of income, deduction, gain or loss arising therefrom. At no time will the Adjustable Rate Supplemental Fund be an asset of any REMIC created hereunder.  All income and gain realized from investment of funds deposited in the Adjustable Rate Supplemental Fund, which investment shall be made solely upon the written direction of the Depositor, shall be for the sole and exclusive benefit of the Depositor and shall be remitted by the Trustee to the Depositor within one Business Day after the termination of the Adjustable Rate Supplemental Fund. The Depositor shall deposit in the Adjustable Rate Supplemental Fund the amount of any net loss incurred in respect of any such Permitted Investment immediately upon realization of such loss, without any right of reimbursement
therefor.

3.5          Article VI of the Agreement is hereby amended by inserting a new paragraph at the end of Section 6.01(a), as follows:

“If on the initial Distribution Date, the amounts payable to the Group I Offered Certificates in respect of the related Interest Funds for such Distribution Date is reduced due to the application of the related Net Rate Cap, the Trustee shall transfer from the Adjustable Rate Supplemental Fund for distribution to the applicable Class or Classes of Group I Certificates on such Distribution Date, an amount equal to the lesser of (i) the amount on deposit in the Adjustable Rate Supplemental Fund, and (ii) the amount of such applicable shortfall.”

 

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3.6          Section 6.01(a)(iii) "Twelfth" of Article VI of the Agreement is hereby deleted and replaced in its entirety with the following (new language underlined and in bold):

Twelfth, from amounts in the Adjustable Rate Supplemental Fund (only with respect to the initial Distribution Date as described herein) and from any remaining Excess Cashflow with respect to Loan Group I, to the Class I-A Certificates, any Basis Risk Shortfall and any Basis Risk Shortfall Carry-forward Amount  for each such Class for such Distribution Date, pro rata, based on the Basis Risk Shortfall and Basis Risk Shortfall Carry-forward Amount owed to each such Class;

3.7          Section 6.01(a)(iii) "Thirteenth" of Article VI of the Agreement is hereby deleted and replaced in its entirety with the following (new language underlined and in bold):

Thirteenth, from amounts in the Adjustable Rate Supplemental Fund (only with respect to the initial Distribution Date as described herein) and from any remaining Excess Cashflow with respect to Loan Group I, to the Class I-B-1, Class I-B-2, Class I-B-3, Class I-B-4, Class I-B-5, Class I-B-6 and Class I-B-7 Certificates, sequentially, in that order, any Basis Risk Shortfall and any Basis Risk Shortfall Carry-forward Amount, in each case for such Class for such Distribution Date;

3.8          Section 6.01(a)(iii) of Article VI of the Agreement is hereby amended by adding a new clause “Fourteenth”, as follows, and by renumbering existing clause “Fourteenth” and  “Fifteenth”, as “Fifteenth” and “Sixteenth”, respectively:

“Fourteenth, if the Adjustable Rate Supplemental Fund has not been terminated pursuant to Section 4.05, to the Adjustable Rate Supplemental Fund, the lesser of (A) any remaining amounts, and (B) the amount which, when added to amounts on deposit in the Adjustable Rate Supplemental Fund, would equal $200,000;” 

3.9          The second to last paragraph of Section 6.01(a)(iii) of Article VI of the Agreement is hereby deleted and replaced in its entirety with the following (new language underlined and in bold) :

"All payments of amounts in respect of Basis Risk Shortfall or Basis Risk Shortfall Carry Forward Amounts made pursuant to the provisions of this paragraph (a) (including amounts paid from the Class A Reserve Fund) shall, for federal income tax purposes, be deemed to have been distributed from REMIC IV to the holder of the Class I-B-IO Certificates and then paid outside of any 2006-AR1 REMIC to the recipients thereof pursuant to an interest rate cap contract.  By accepting their Certificates the holders of the Certificates agree so to treat such payments for purposes of filing their income tax returns." 

3.10        Section 9.01(c) of Article IX of the Agreement is hereby deleted and replaced in its entirety with the following (new language underlined and in bold):

 

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"On each Distribution Date, the Trustee shall make monthly distributions and the final distribution to the Certificateholders from funds in the Distribution Account and the Adjustable Rate Supplemental Fund as provided in Sections 4.05, 6.01 and 10.01 herein."

SECTION 4. EFFECTIVENESS OF AGREEMENT. Except as expressly amended by the terms of this amendment, all terms and conditions of the Agreement, as amended, shall remain in full force and effect.

SECTION 5. EXECUTION IN COUNTERPARTS. This Amendment No. 1 may be executed by the parties hereto in several counterparts, each of which shall be executed by the parties hereto and be deemed an original and all of which shall constitute together by one and the same Agreement.

SECTION 6. GOVERNING LAW. This Agreement shall be construed in accordance with the laws of the State of New York, without reference to conflict of law principles, and the obligations, rights and remedies of the parties hereunder shall be determined in accordance with the laws of the State of New York.

 

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IN WITNESS WHEREOF, the parties have caused this Amendment No. 1 to the Agreement to be executed by their respective officers thereunto duly authorized as of the day and year first above written.

 

	
             
 	
            STRUCTURED ASSET MORTGAGE INVESTMENTS II INC., as Depositor
 
	
             
 	
             
 
	
             
 	
             
 
	
             
 	
            By: __/s/ Baron Silverstein_________
 
	
             
 	
            Name: Baron Silverstein
 
	
             
 	
            Title:  Vice President
 
	
             
 	
             
 
	
             
 	
             
 
	
             
 	
            WELLS FARGO BANK, NATIONAL ASSOCIATION, as Trustee
 
	
             
 	
             
 
	
             
 	
             
 
	
             
 	
            By: ___/s/ Stacey Taylor__________
 
	
             
 	
            Name: Stacey Taylor
 
	
             
 	
            Title:   Vice President
 
	
             
 	
             
 
	
             
 	
             
 
	
             
 	
            EMC MORTGAGE CORPORATION, as Sponsor
 
	
             
 	
             
 
	
             
 	
             
 
	
             
 	
            By: ___/s/ Dana Dillard_________
 
	
             
 	
            Name:  Dana Dillard
 
	
             
 	
            Title:    Senior Vice President
 
	
             
 	
             
 

 

 

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            BEAR, STEARNS SECURITIES CORP., as 100% holder of the Class I-B-IO Certificates, hereby consents to this Amendment No. 1
 
	
             
 	
             
 
	
             
 	
             
 
	
             
 	
            By: __/s/ Paul Friedman___________
 
	
             
 	
            Name:  Paul Friedman
 
	
             
 	
            Title:    Senior Managing Director
 

 

 

 

 

7WWW.EXFILE.COM, INC. -- 14589 -- AMERICAN POWER CONVERSION CORP. -- EXHIBIT 10.1 TO FORM 8-K

    EXHIBIT
      10.1

    

      August
        24, 2006

      

      Rodger
        B.
        Dowdell, Jr.

      7804
        Sloane Gardens Court

      University
        Park, Florida 32401

      

      Dear
        Rodger:

      

      This
        will
        confirm that you have retired as President and Chief Executive Officer of
        American Power Conversion Corporation, and that, commensurate with such
        retirement from the company, you have submitted your resignation from such
        offices as of August 15, 2006. This will also confirm that accordingly your
        employment with American Power Conversion Corporation and its subsidiaries
        (collectively “APC” or the “Company”) has terminated, effective as of August 15,
2006
        (the
“Separation Date”), subject to the terms and conditions of this letter
        agreement. As of the Separation Date, the further accrual of your salary
        has
        ceased, and any entitlement you had or might have had under an APC-provided
        benefit plan, program or practice terminates, except as specifically provided
        below or as otherwise required by federal or state law. You will, however,
        continue as a member of the Board of Directors and as non-executive Chairman
        of
        the Board. This letter agreement (“Agreement”) spells out the terms of your
        separation from employment with APC.

      

      1. In
        consideration for your execution of this Agreement, including specifically
        the
        release provisions in Section 4, APC agrees that you will be paid by APC
        an
        aggregate of $2,000,000, which amount reflects your severance pay and all
        of
        your accrued but unused vacation time, minus any applicable federal, state
        and/or local taxes, deductions and withholdings, and any other agreed-upon
        deductions payable in a lump sum within 10 days of the expiration of the
        seven
        day revocation period set forth in Section 14.

      

      2. You
        have
        the right under federal legislation, commonly referred to as “COBRA”, to
continue
        participation in APC’s group health insurance plans (medical, dental) at your
        expense for a period of up to 18 months after certain qualifying events with
        respect to APC, subject to limitations on that right imposed by COBRA. Documents
        relating to your COBRA rights will be provided separately at the appropriate
        time.

      

      3. You
        understand and agree that the payments offered to you in Section 1 of this
        Agreement are in addition to any payments or benefits to which you are otherwise
        entitled because of your employment with the Company. You will receive payment
        of your earned salary (less applicable taxes and withholdings) through the
        Separation Date at the applicable regularly scheduled payroll payment period.
        In
        accordance with APC’s regular
        policies, you will also receive reimbursement for properly documented
        expenditures made by you on behalf of the Company prior to the Separation
        Date,
        which are to be submitted no later than September 30, 2006. Such reimbursement
        payments will be paid promptly after the appropriate written requests for
        reimbursement are submitted in accordance with the APC regular reimbursement
        policies. In addition, following the Separation Date, you will be entitled
        to
        receive vested amounts payable to you under APC’s 401(k)/ESOP plan in accordance
        with the terms of such plan and applicable 

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

      law.
        APC
        currently is the owner of a group term life insurance policy that includes
        you,
        which may be converted to an individual policy (with certain limitations).
        Appropriate conversion forms will be provided by the insurance carrier to
        you
        with benefits information.

      

      4.
        (a) 
        In exchange for the amounts described in Section 1 of this Agreement, and
        other
        good and valuable consideration, you knowingly and voluntarily agree that
        you,
        your representatives, agents, estate, heirs, successors and assigns absolutely
        and unconditionally release, indemnify, hold harmless and forever discharge
        the
        Company and its parent, subsidiaries, divisions, affiliates, successors and/or
        assigns and their respective current and/or former officers, directors,
        shareholders, agents, and employees, both individually and in their official
        capacities (collectively referred to throughout this Agreement as the
“Releasees”), of and from any and all actions, causes of action, suits, claims,
        complaints, liabilities, agreements, promises, contracts, torts, damages,
        controversies, judgments, rights and demands, whether existing or contingent,
        known or unknown, which you have or may have against the Releasees, including,
        but not limited to: (i) any and all claims arising out of or in connection
        with
        your employment, change in employment, resignation, retirement or termination;
        (ii) any and all claims based on any federal, state or local law, constitution
        or regulation dealing with employment, employment discrimination, retaliation
        and/or employment benefits such as those laws or regulations concerning
        discrimination on the basis of race, color, creed, religion, age, sex, sex
        harassment, sexual orientation, marital status, national origin, ancestry,
        handicap or disability, family or medical leave, veteran status or any military
        service or application for military service; (iii) any and all claims based
        on
        any alleged public policy, contract (whether oral or written, express or
        implied), tort, or any other statutory or common law claim of any nature
        whatsoever; and/or (iv) any allegation for costs, fees, or other expenses
        including attorneys’ fees incurred in these matters. This provision is intended
        by you to be all-encompassing and to act as a full and total release of any
        and
        all claims, whether specifically enumerated herein or not, that you and your
        representatives, agents, estate, heirs, successors and assigns have, may
        have or
        have had against the Releasees from the beginning of the world to the date
        of
        your execution of this Agreement. 

      

      (b) You
        not only release and discharge the Releasees from any and all claims as stated
        above that you could make on your own behalf or on behalf of others, but
        you
        also specifically waive any right to recover any award(s) as a member of
        any
        class in a case in which any claim(s) against the Releasees are made, including,
        without limitation, claims involving any matters arising out of your employment
        with, change in employment status with, or resignation/termination from
        employment with APC.

      

      (c)
        The amounts set forth above in Section 1 shall be complete and unconditional
        payment, settlement, accord and/or satisfaction with respect to all obligations
        and liabilities of Releasees to you, including, without limitation, all claims
        for wages, salary, draws, incentive pay, bonuses, stock and stock options,
        restricted stock or restricted stock units, 

       

      
        
          
          

        

        
          2

          
            

          

        

        
          
          

        

      

      commissions,
        severance pay, any and all other forms of compensation or benefits, attorney’s
        fees, or other costs or sums. Additionally,
        nothing in this Agreement shall be interpreted to prohibit you from filing
        an
        age discrimination claim with any anti-discrimination agency, or from
        participating in an age discrimination investigation or proceeding conducted
        by
        any such agency. However, by signing you acknowledge that you are waiving
        any
        and all rights to money damages and any other relief that might otherwise
        be
        available should you or any other entity pursue claims arising out of or
        relating to your employment with the Company against the Releasees other
        than
        claims arising out of a breach by APC of any obligations set forth in this
        Agreement.

       

      (d) Waiver
        of Rights and Claims Under the Age Discrimination and Employment Act of
        1967.
        Since you are 40 years of age or older, you have been informed that you have
        or
        might have specific rights and/or claims under the Age Discrimination in
        Employment Act of 1967 (ADEA) and you agree that:

       

      (i) In
        consideration for the amounts described in Section 1 hereof, which you are
        not
        otherwise entitled to receive, you specifically waive such rights and/or
        claims
        under ADEA that you might have against the Releasees to the extent that such
        rights and/or claims arose prior to or on the date this Agreement was
        executed;

       

      (ii) You
        understand that rights or claims under the ADEA which may arise after the
        date
        this Agreement is executed are not waived by you;

       

      (iii) You
        are advised to consider the terms of this Agreement carefully and to consult
        with your counsel or any other person of your choosing prior to executing
        this
        Agreement and you have not been subject to any undue or improper influence
        interfering with the exercise of your free will in deciding whether to execute
        this Agreement;

       

      (iv) You
        have been informed that you have up to 21 days within which to consider the
        terms of this Agreement; 

       

      (v) You
        have carefully read and fully understand all of the provisions of this
        Agreement, and you knowingly and voluntarily agree to all of the terms set
        forth
        in this Agreement; 

       

      (vi) In
        entering into this Agreement you are not relying on any representation, promise
        or inducement made by the Releasees or their attorneys with the exception
        of
        those promises described in this document;
        and 

      

      (vii) The
        21-day review period will not be affected or extended by any revisions which
        might be made to this Agreement.

       

      (e) Notwithstanding
        anything herein to the contrary, you are not releasing any rights you may
        have
        (i) with respect to the exercise of vested options within three months of
        the

      
        
          
          

        

        
          3

          
            

          

        

        
          
          

        

      

      Separation
        Date in accordance with the terms of the applicable option agreements and
        the
        Company’s 1997 Stock Option Plan, (ii) to any vested rights to benefits under
        the APC 401K/ESOP plan, (iii) to indemnification under APC’s Articles of
        Incorporation, and by-laws and/or pursuant to applicable law to the extent
        in
        effect at the date of this Agreement, (iv) to coverage under APC’s existing
        Directors’ and Officers’ liability insurance policies, existing property and
        casualty insurance policies or any other similar existing insurance policies
        to
        the extent they cover you for potential liabilities or (v) under this
        Agreement.

      

      5. By
        signing this Agreement, you understand and agree: (a) that this Agreement
        sets
        forth the entire agreement between you and APC and supersedes all other
        agreements, representations, and or understandings, whether oral or written,
        with respect to the subject matter herein other than as expressly provided
        for
        in this Agreement; (b) that nothing in this Agreement is intended to mean
        that
        APC has engaged in any wrongdoing or unlawful conduct; (c) that until such
        time
        as APC publicly files this Agreement with the Securities and Exchange
        Commission, you will not disclose the existence or the contents of this
        Agreement to anyone but your attorney, advisor, spouse, or significant other,
        provided that nothing in this Agreement shall bar you from providing truthful
        testimony in any legal proceeding or cooperating with any governmental agency,
        however, you understand and agree that APC may publicly disclose your
        resignation and the existence of this Agreement and/or its contents; (d)
        that
        you will continue to be bound by your obligations under any non-disclosure,
        non-competition, non-solicitation and developments agreements between you
        and
        APC; (e) that this Agreement can be modified only in a written agreement
        signed
        by you and APC; (f) that this Agreement shall be interpreted pursuant to
        its
        fair meaning and shall not be strictly construed for or against either party
        and
        (g) that this Agreement is binding upon, and inures to the benefit of, your
        heirs, administrators, representatives, executors, and successors.

      

      6. In
        addition to the above, and in consideration of the amounts described in Section
        1 of this Agreement and the other agreements of APC contained in this Agreement,
        and other good and valuable consideration, by signing this Agreement you
        agree
        not to make disparaging, critical or otherwise detrimental comments, in any
        form, forum or media, to any person or entity concerning APC and its officers,
        directors, shareholders, trustees, or employees, concerning the services
        or
        programs provided or to be provided by APC, concerning the business affairs
        or
        the financial condition of APC, or concerning the circumstances surrounding
        your
        employment with and/or separation from APC. Similarly, by signing this
        Agreement, APC, in consideration of your agreements contained in this Agreement,
        agrees that it will make reasonable efforts to provide that the members of
        the
        Board of Directors and the executive officers of the Company do not disparage
        you or encourage others to disparage you.

      

      7. You
        understand that, whether or not you sign this Agreement, you must immediately
        return to APC all property of APC in your possession or control, including,
        but
        not limited to, company records, files, laptop computers, cellular telephones,
        credit cards, keys and security badges.

      
        
          
          

        

        
          4

          
            

          

        

        
          
          

        

      

      

      

      8. You
        confirm that no charge, complaint or action filed by you or on your behalf
        against the Releasees exists in any forum or form.

      

      9. In
        connection with your retirement as an officer of the Company and the associated
        termination of your employment with APC, you confirm that such termination
        includes your termination as President and Chief Executive Officer of APC,
        as
        well as termination as an officer and/or director of any subsidiary or affiliate
        of APC.

      

      10. In
        addition to the above, and in consideration of the amounts described in Section
        1 of this Agreement and the other agreements of APC contained in this Agreement,
        and other good and valuable consideration, by signing this Agreement you
        agree,
        for a period of one (1) year from the date of this agreement, to cooperate
        with
        the Company and provide reasonable assistance with respect to the defense
        of any
        actions, causes of action, suits, claims, charges and complaints made against
        the Company prior to or following the Separation Date in which you are involved,
        have knowledge, or may be deposed or called to serve as a witness provided
        that
        the Company will make reasonable efforts to give you as much advance notice
        of
        such request as practicable and will also make reasonable efforts to avoid
        unnecessary interference with your personal life and business affairs in
        securing such cooperation and assistance. The Company agrees to reimburse
        you
        for any reasonable expenses incurred by you in complying with this Section
        10.

      

      11. The
        Company will maintain the Company’s existing indemnification provisions as of
        the Separation Date with respect to you in your capacity as an officer, director
        and employee of the Company prior to the Separation Date to the extent provided
        for under APC’s Articles of Incorporation and bylaws subject to, and, in
        addition, as permitted under or consistent with applicable law. In addition,
        as
        Chairman of the Board, you will be provided indemnification rights and rights
        under applicable directors and officers liability policies as may be in effect
        from time to time for any other non-employee directors.

      

      12. Notwithstanding
        the termination of your employment with the Company, you will remain as a
        member
        of the Board of Directors and as non-executive Chairman of the Board. You
        will
        have no entitlement to hold such positions for any specified term other than
        as
        a non-employee member of the Board of Directors and your holding of such
        positions remains subject to the provisions of the Articles of Incorporation
        and
        By-Laws of the Company as well as all applicable provisions of law, regulations
        or regulatory requirements. Subject to such laws, regulations or regulatory
        requirements, as long as you continue as non-executive Chairman of the Board,
        you shall receive, in lieu of any other compensation as a non-employee member
        of
        the Board of Directors, the following compensation:

       

      
        	
              	(i)	
                an
                  annual retainer of $50,000, paid
                  quarterly;

              

      

      
        	
              	(ii)	
                a
                  $2,500 fee for attendance at an in-person meeting of the Board
                  of
                  Directors;

              

      

      
        
          
          

        

        
          5

          
            

          

        

        
          
          

        

      

      

      
        	
              	(iii)	
                a
                  $1,250 fee for attendance at a telephonic meeting of the Board
                  of
                  Directors; 

              

      

      
        	
              	(iv)	
                reimbursement
                  of your reasonable expenses incurred in attending meetings of the
                  board of
                  Directors;

              

      

      
        	
              	(v)	
                the
                  grant of 5,000 restricted stock units on or before September 30,
                  2006,
                  vesting ratably over four equal annual installments commencing
                  June 30,
                  2007 and the next three successive June 30ths
                  thereafter;

              

      

      
        	
              	(vi)	
                an
                  annual grant of 5,000 restricted stock units (such number to be
                  adjusted
                  for stock splits and similar events), such grant to be made on
                  June 30
                  each year commencing June 30, 2007, and to vest ratably over four
                  equal
                  annual installments, all in accordance with the provisions of the
                  Company’s compensation of non-employee directors, as in effect from time
                  to time; and

              

      

      
        	
              	(vii)	
                continued
                  coverage under the Company’s health plan (which coverage may be by the
                  Company’s payment of your COBRA payments upon your election of COBRA at
                  the Company’s request while applicable and/or a change to the Company’s
                  health plan coverage), subject to changes to such plan applicable
                  to
                  employees of the Company generally.

              

      

      

      In
        addition, should you cease to be Chairman of the Board for any reason other
        than
        death or the removal for cause (where “cause,” solely for purposes of
        determining your right to continuation of health coverage and not generally
        for
        purposes of whether you can be removed for cause as a director, shall be
        (i)
        your engaging in gross negligence or gross misconduct, (ii) your material
        breach
        of a fiduciary duty to APC, or (iii) your being convicted of a felony or
        act of
        moral turpitude which act is reasonably likely to result in material injury
        to
        APC), the Company will continue your coverage under the Company’s health plan
        for an additional period of 12 months; provided, however, that if such coverage
        is not reasonably available to the Company the Company will pay you promptly
        after making such determination an amount equal to the annual cost to you
        to
        secure comparable coverage at the time you cease to be Chairman of the Board.
        You acknowledge and agree that your position as Chairman of the Board is
        not a
        continuation of your employment and shall not be considered as such for purposes
        of your outstanding stock options, and that such options will terminate three
        months from the Separation Date unless properly exercised prior thereto.
        

      

      13. This
        Agreement shall be governed by and construed in accordance with the laws
        of the
        State of Massachusetts, without regard to its conflict of laws provision.
        Should
        any provision of the Agreement be declared unenforceable by any court of
        competent jurisdiction and cannot be modified to be enforceable, excluding
        the
        general release language contained in Section 4, such provision shall
        immediately become null and void, leaving the remainder of this Agreement
        in
        full force and effect. This Agreement cannot be assigned by you and shall
        inure
        to the benefit of and be binding on APC’s successors and assigns.

      
        
          
          

        

        
          6

          
            

          

        

        
          
          

        

      

      

      

      14. If
        this Agreement correctly states the understanding we have reached, please
        indicate your acceptance by countersigning the enclosed copy and returning
        it to
        me within twenty-one (21) days.

      

      If
        you do sign this Agreement, it will not take effect with respect to any claim
        under ADEA until seven (7) days have passed after you sign it. We will not
        be
        able to provide you with the severance pay or benefits that we have offered
        you
        until the seven-day revocation period has expired. During those seven (7)
        days
        you will have the right to revoke this Agreement with respect to any claim
        under
        ADEA. If you decide to so revoke this Agreement, please inform me by letter
        during the seven-day period that you desire to revoke your execution of this
        Agreement, in which case you will not receive the severance pay or benefits
        offered in this Agreement. 

      

      
        	 	 	
                Very
                  truly yours, 

              
	 	 
	 
 	 
 	 
 
	 	  	/s/ Robert
                J. Johnson
	 	
                

                Robert
                  J. Johnson, 

              
	 	President
                and Chief Executive Officer

      

      

       

      

      I
        acknowledge that I have read the foregoing Agreement, and that I carefully
        considered and fully understand the terms and conditions of such Agreement.
        I
        acknowledge that I am signing this Agreement knowingly and voluntarily. In
        entering into this Agreement, I do not rely on any representation, promise
        or
        inducement made by APC, the Releasees or their attorneys, with the exception
        of
        the consideration described in this document.

      

      ACCEPTED:

      

      

      

      
        	
                /s/
                  Rodger B. Dowdell,
                  Jr.                
                  

                Signature 

              	
                8/24/2006                
                  

                Date

              

      

      

       

       

      
 

      
        
          
          

        

        
          7

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