Document:

Exhibit 10.1.2

                         WHOLE LOAN CUSTODIAL AGREEMENT

                               ASPEN FUNDING CORP.
                                   Purchaser,
                                 60 Wall Street
                            New York, New York 10005

                        GEMINI SECURITIZATION CORP., LLC.
                                   Purchaser,
                                 60 Wall Street
                            New York, New York 10005

                              NEWPORT FUNDING CORP.
                                   Purchaser,
                                 60 Wall Street
                            New York, New York 10005

                                       and

                          AMERICAN HOME MORTGAGE CORP.
                                     Seller,
                              538 Broadhollow Road
                            Melville, New York 11747

                     AMERICAN HOME MORTGAGE INVESTMENT CORP.
                                     Seller,
                              538 Broadhollow Road
                            Melville, New York 11747

                     AMERICAN HOME MORTGAGE SERVICING, INC.,
                                    Servicer,
                          4600 Regent Blvd., Suite 200
                               Irving, Texas 75063

                                       and

                      DEUTSCHE BANK NATIONAL TRUST COMPANY
                                    Custodian
                           1761 East St. Andrew Place
                           Santa Ana, California 92705
                         Attn: Mortgage Custody - AH064C

                           Dated as of June [__], 2006

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                              TABLE OF CONTENTS

                                                                          Page

Section 1.  Definitions.....................................................1
Section 2.  Delivery of Documents by Sellers................................6
Section 3.  Custodian as Custodian for, and Bailee of, Purchasers, Assignee
             and Warehouse Lender...........................................6
Section 4.  Certification by Custodian; Delivery of Documents; Disbursement
             Account........................................................7
Section 5.  [Reserved].....................................................11
Section 6.  Default........................................................12
Section 7.  Access to Documents............................................12
Section 8.  Custodian's Fees and Expenses; Successor Custodian; Standard of
             Care..........................................................12
Section 9.  Assignment by Purchaser........................................15
Section 10. Insurance......................................................16
Section 11. Representations, Warranties and Covenants......................16
Section 12. No Adverse Interests...........................................18
Section 13. Amendments.....................................................18
Section 14. Execution in Counterparts......................................18
Section 15. Agreement for Exclusive Benefit of Parties; Assignment.........18
Section 16. Effect of Invalidity of Provisions.............................18
Section 17. Governing Law..................................................19
Section 18. Consent to Service.............................................19
Section 19. Notices........................................................19
Section 20. Construction...................................................19
Section 21. Submission to Jurisdiction.....................................19
Section 22. WAIVER OF JURY TRIAL...........................................19

<PAGE>

EXHIBITS

Exhibit A-1   [Reserved]
Exhibit A-2   [Reserved]
Exhibit B-1   Conduit Submission Package
Exhibit B-2   Conduit Master Bailee Letter
Exhibit C     Request for Certification
Exhibit D-1   Trust Receipt
Exhibit D-2   Wet Mortgage Loan Trust Receipt
Exhibit E- 1  Warehouse Lender's Release
Exhibit E-2   Warehouse Lender's Wire Instructions
Exhibit F-l   Seller's Release
Exhibit F-2   Seller's Wire Instructions
Exhibit G-l   Purchaser's Wire Instructions to Seller
Exhibit G-2   Purchaser's Wire Instructions to Custodian
Exhibit G-3   Purchaser's Delivery Instructions to Custodian
Exhibit H     Notice by Assignee to Custodian of Purchaser's Default
Exhibit I     Notice of Assignment
Exhibit J     Form of Delivery Instructions
Exhibit K-1   Trade Assignment
Exhibit K-2   Trade Assignment (Blanket)
Exhibit L     Officer's Certificate of Seller
Exhibit M     Request for Release
Schedule A    List of Conduits
Schedule B    Loan Identification Data

<PAGE>

                               CUSTODIAL AGREEMENT

            THIS CUSTODIAL AGREEMENT ("Agreement"), dated as of the date set
forth on the cover page hereof (the "Effective Date"), is entered into by and
among ASPEN FUNDING CORP., GEMINI SECURITIZATION CORP., LLC and NEWPORT FUNDING
CORP. (each individually, a "Purchaser" and together, the "Purchasers"),
DEUTSCHE BANK NATIONAL TRUST COMPANY, as custodian ("Custodian") and AMERICAN
HOME MORTGAGE CORP., AMERICAN HOME MORTGAGE INVESTMENT CORP., (each
individually, a "Seller" and together, the "Sellers") and AMERICAN HOME MORTGAGE
SERVICING, INC., (the "Servicer").

                              PRELIMINARY STATEMENT

            Purchasers have agreed to purchase from Sellers, from time to time,
at their sole election, certain mortgage loans pursuant to the terms and
conditions of the Whole Loan Purchase and Sale Agreement ("Purchase Agreement")
among Purchasers, Servicer, and Sellers. Servicer is obligated to interim
service the Mortgage Loans pursuant to the terms and conditions of the Purchase
Agreement. Purchasers desire to have Custodian take possession of the Mortgage
Notes evidencing the Mortgage Loans, along with certain other documents
specified herein, as the custodian for and bailee of the related Purchaser or
Assignee in accordance with the terms and conditions hereof.

            The parties hereto agree as follows:

            Section 1. Definitions.

            Capitalized terms used, but not defined, herein shall have the
meanings set forth in the Purchase Agreement. As used in this Agreement, the
following terms shall have the following meanings:

            "Applicable Guide": With respect to each Takeout Investor the
      applicable guide published by such Takeout Investor setting forth the
      requirements Mortgage Loans must satisfy in order to be eligible for
      purchase by such Takeout Investor as amended or supplemented from time to
      time.

            "Assignee": The party identified in writing to Sellers and Custodian
      by Purchasers from time to time who acts as agent for certain
      beneficiaries pursuant to certain custody agreements with Purchasers.

            "Assignment of Mortgage": An assignment of the Mortgage, notice of
      transfer or equivalent instrument sufficient under the laws of the
      jurisdiction wherein the related Mortgaged Property is located to reflect
      of record the sale of a Mortgage Loan.

            "Bailee Letter": A Conduit Bailee Letter.

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            "Business Day": Any day other than (a) a Saturday, Sunday or other
      day on which banks located in The City of New York, New York or California
      are authorized or obligated by law or executive order to be closed or (b)
      any day on which the Servicer, Purchasers or Custodian is authorized or
      obligated by law or executive order to be closed.

            "Commitment": A commitment executed by Takeout Investor and the
      related Seller evidencing Takeout Investor's agreement to purchase one or
      more Mortgage Loans from such Seller and such Seller's agreement to sell
      one or more Mortgage Loans to an investor in a forward trade by the
      applicable Expiration Date.

            "Conduit": Any of the entities listed on Schedule A, as amended or
      supplemented from time to time.

            "Conduit Bailee Letter": The master bailee letter, in the form of
      Exhibit B-2, for use by Custodian in connection with the delivery of a
      Conduit Submission Package, for the purpose of delivering the related
      Conduit Submission Package, excluding (i) a copy of the Confirmation, (ii)
      the Warehouse Lender's Release or the related Seller's Release, as
      applicable, and (iii) the original Assignment of Mortgage, in blank, to a
      Conduit.

            "Conduit Submission Package": The documents listed on Exhibit B-1,
      which shall be delivered by the related Seller to Custodian in connection
      with each Conduit Transaction.

            "Conduit Transaction": A transaction initiated by the related
      Seller's delivery of a Request for Certification which identifies a
      Conduit as the Takeout Investor.

            "Confirmation": A written confirmation as required by the Purchase
      Agreement of Purchaser's intent to purchase a pool of Mortgage Loans.

            "Custodian": The party identified on the cover page hereto and its
      permitted successors hereunder.

            "Delivery Instructions": With respect to a Mortgage Loan,
      instructions prepared by Sellers and transmitted electronically in an
      appropriate data layout no later than 11:00 a.m. New York City time, in
      the form of Exhibit J indicating the address for the delivery by Custodian
      of the applicable portion of the related Submission Package.

            "Disbursement Account": shall have the meaning set forth in Section
      4(a)(2) hereof.

            "Discount": With respect to a Mortgage Loan sold by the related
      Seller to the Purchaser, the amount set forth on the related Confirmation
      as the Discount.

            "Electronic Agent": Shall have the meaning assigned to such term in
      Section 2 of the Electronic Tracking Agreement.

            "Electronic Tracking Agreement" The Electronic Tracking Agreement,
      dated as of the date hereof, among the Purchasers, the Sellers, the
      Servicer, the Electronic Agent and MERS, as the same shall be amended,
      supplemented or otherwise modified from time to time.

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            "Expiration Date": With respect to any Commitment, the expiration
      date thereof.

            "Funding Confirmation": With respect to all Mortgage Loans purchased
      by the related Purchaser from Sellers via a single wire funds transaction
      on a particular Business Day, the trade confirmation from such Purchaser
      to Sellers confirming the terms of such Purchaser's purchase of such
      Mortgage Loans.

            "GNMA": The Government National Mortgage Association and any
      successor thereto.

            "HUD": United States Department of Housing and Urban Development and
      any successor thereto.

            "Loan Identification Data": The applicable information regarding a
      Mortgage Loan, set forth on a Request for Certification, which shall
      include the fields set forth on Schedule B, such schedule may be modified
      from time to time by the Purchaser.

            "Losses": Any and all losses, claims, damages, liabilities or
      expenses (including lost interest and reasonable attorney's fees) incurred
      by any Person specified; provided, however that "Losses" shall not include
      losses, claims, damages, liabilities or expenses which would have been
      avoided had such Person taken reasonable actions to mitigate such losses,
      claims, damages, liabilities or expenses.

            "MERS": Mortgage Electronic Registration Systems, Inc., a
      corporation organized and existing under the laws of the State of
      Delaware, or any successor thereto.

            "MERS Mortgage Loan": Any Mortgage Loan as to which the related
      Mortgage or assignment of Mortgage has been recorded in the name of MERS,
      as agent for the holder from time to time of the Mortgage Note and which
      is identified as a MERS Mortgage Loan on the related Loan Identification
      Data."

            "MERS Report": The schedule listing MERS Mortgage Loans and other
      information prepared by the Electronic Agent with respect to such Mortgage
      Loan.

            "MERS System": The system of recording transfers of Mortgages
      electronically maintained by MERS.

            "MIN": The mortgage identification number of Mortgage Loans
      registered with MERS on the MERS System.

            "Mortgage": A mortgage, deed of trust or other security instrument
      creating a lien on an estate in fee simple in real property securing a
      Mortgage Note.

            "Mortgage Loan": A mortgage loan that is subject to this Agreement.

            "Mortgage Note": The note or other evidence of the indebtedness of a
      Mortgagor secured by a Mortgage.

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            "Mortgaged Property": The property subject to the lien of the
      Mortgage securing a Mortgage Note.

            "Mortgagor": The obligor on a Mortgage Note.

            "Notice of Bailment": A notice, in the form of Schedule A to Exhibit
      A-2 or Schedule A to Exhibit B-2, as applicable, delivered by Custodian to
      Takeout Investor in connection with each delivery to Takeout Investor of
      the applicable portion of each Submission Package.

            "Person": Any individual, corporation, partnership, joint venture,
      association, joint stock company, trust (including any beneficiary
      thereof), unincorporated organization or government or any agency or
      political subdivision thereof.

            "Pricing Side Letter": The pricing side letter, dated as of the date
      hereof, among Sellers and Purchasers, as the same may be amended,
      supplemented or modified from time to time.

            "Primary Mortgage Insurer": Any one of GE Capital Mortgage Insurance
      Co., Republic Mortgage Insurance Co., Mortgage Guaranty Insurance Corp.,
      United Guaranty Corporation or PMI Mortgage Insurance Company or any other
      entity approved as a primary mortgage insurer by Fannie Mae.

            "Purchase Agreement": The Whole Loan Purchase and Sale Agreement,
      dated as of the date set forth on the cover page thereof, among Sellers,
      Servicer and Purchaser, as each is amended from time to time providing the
      terms of Conduit Transactions.

            "Purchase Date": With respect to a Mortgage Loan, the date on which
      the Purchasers purchases such Mortgage Loan from Sellers.

            "Purchasers": Aspen Funding Corp., Gemini Securitization Corp., LLC
      and Newport Funding Corp., each a Purchaser and together "Purchasers".
      With respect to any Mortgage Loan, the related Purchaser whose name is set
      forth on the cover page hereof to whom the Seller sold such Mortgage Loan
      pursuant to the terms of the Purchase Agreement, and its permitted
      successors hereunder.

            "Purchaser's Payment": The amount set forth on the Request for
      Certification in the "RELEASE PAYMENT" column.

            "Purchase Price": With respect to each Mortgage Loan Pool purchased
      by a Purchaser hereunder, the amount specified in the Pricing Side Letter.

            "Purchaser's Wire Instructions to Custodian": Wire Instructions
      delivered by the related Purchaser to Custodian, in the form of Exhibit
      G-2, executed by such Purchaser, receipt of which has been acknowledged by
      Custodian specifying the wire address where all funds received in
      accordance with such Purchaser's Wire Instructions to the related Seller
      shall be transferred by Custodian.

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            "Purchaser's Wire Instructions to Seller": The wire instructions,
      set forth on Exhibit G-1, specifying the account which shall be used for
      the payment of all amounts due and payable by Sellers to the related
      Purchaser hereunder.

            "Release Payment": The funds referred to in a Warehouse Lender's
      Release or the related Seller's Release, as applicable.

            "Request for Certification": A report detailing Loan Identification
      Data supplied by the related Seller to the related Purchaser and Custodian
      in the form of Exhibit C and transmitted electronically in an appropriate
      data layout, regarding all Mortgage Loans being offered for sale by such
      Seller to such Purchaser on the Purchase Date.

            "Sellers": American Home Mortgage Corp. and American Home Mortgage
      Investment Corp., each a Seller and together "Sellers". With respect to
      any Mortgage Loan, the related Seller whose name is set forth on the cover
      page hereof from whom the Purchaser purchased such Mortgage Loan pursuant
      to the terms of the Purchase Agreement, and its permitted successors
      hereunder.

            "Seller's Release": A letter, in the form of Exhibit F-1, delivered
      by the related Seller when no Warehouse Lender has an interest in a
      Mortgage Loan, conditionally releasing all of such Seller's right, title
      and interest in a Mortgage Loan upon receipt of payment by such Seller.

            "Seller's Wire Instructions": The wire instructions, set forth in a
      letter in the form of Exhibit F-2, to be used for the payment of funds to
      the related Seller when no Warehouse Lender has an interest in the
      Mortgage Loans to which such payment relates.

            "Submission Package": With respect to each Mortgage Loan, a Conduit
      Submission Package.

            "Successor Servicer": An entity designated by Purchasers, in
      conformity with the Purchase Agreement, to replace Servicer as servicer
      for Purchaser.

            "Takeout Investor": A Conduit.

            "Trade Assignment": The assignment by the related Seller to the
      related Purchaser of such Seller's rights under a specific Commitment, in
      the form of Exhibit K-1, or of such Seller's rights under all Commitments,
      in the form of Exhibit K-2.

            "Trade Price": The trade price set forth on a Commitment.

            "Trade Principal": With respect to any Mortgage Loan, the
      outstanding principal balance of the Mortgage Loan multiplied by a
      percentage equal to the Trade Price.

            "Trust Receipt": A receipt of Custodian, substantially in the form
      of Exhibit D-1, or with respect to Wet Mortgage Loans as defined in the
      Purchase Agreement in the form of Exhibit D-2, indicating that with
      respect to the Mortgage Loans listed on the attached schedule, the
      Custodian has performed the procedures set forth in Sections 4(a) and 4(b)

                                      -5-
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      hereof, that it has received the entire Conduit Submission Package, as
      applicable, and that it is holding such documents as bailee and custodian
      of the related Purchaser.

            "Warehouse Lender": Any lender providing financing to the related
      Seller for the purpose of originating Mortgage Loans, which lender has a
      security interest in such Mortgage Loans as collateral for the obligations
      of such Seller to such lender.

            "Warehouse Lender's Release": A letter, in the form of Exhibit E-1,
      from a Warehouse Lender to the related Purchaser, conditionally releasing
      all of Warehouse Lender's right, title and interest in certain Mortgage
      Loans identified therein upon payment to Warehouse Lender.

            "Warehouse Lender's Wire Instructions": The wire instructions, set
      forth in a letter in the form of Exhibit E-2, from a Warehouse Lender to
      the related Purchaser, setting forth wire instructions for all amounts due
      and payable to such Warehouse Lender.

            "Wet Mortgage Loan": Mortgage Loans for which the Custodian has not
      yet received a completed set of documents required to be delivered to the
      Custodian pursuant to this Agreement.

            Section 2. [Reserved].

            Section 3. Custodian as Custodian for, and Bailee of, Purchaser,
Assignee and Warehouse Lender.

            (a) With respect to each Mortgage Note, each Assignment of Mortgage
and all other documents constituting each Submission Package that are delivered
to Custodian or that at any time come into Custodian's possession, Custodian,
subject to the provisions of paragraphs (b) and (c) of this Section 3, shall act
solely and exclusively in the capacity of custodian for, and bailee of, the
related Purchaser after the payment by the related Purchaser to the related
Seller of the Purchase Price therefor. Custodian shall, subject to the
provisions of paragraphs (b) and (c) of this Section 3 and except as otherwise
required by Section 4: (i) hold all documents constituting a Submission Package
received by it for the exclusive use and benefit of the related Purchaser; (ii)
make disposition thereof only in accordance with this Agreement and the
directions of the related Purchaser; and (iii) have no discretion or authority
to act in a manner which is in any respect contrary to its role as custodian
with respect to its obligations under this Agreement. Custodian shall segregate
and maintain continuous custody of all documents constituting a Submission
Package received by it in secure and fire resistant facilities in accordance
with customary standards for such custody and shall mark its books and records
to indicate that the related Purchaser is the owner of the Mortgage Loans and
that the Submission Package is being held for such Purchaser.

            (b) With respect to each Mortgage Loan purchased by the related
Purchaser from the related Seller, the related Purchaser shall have the right to
assign to Assignee such Mortgage Loan as described in Section 9. Purchaser shall
provide Custodian with at least 5 Business Days notice of its intention to
assign any Mortgage Loans to an Assignee, except if the Assignee is an Affiliate
of Purchaser or a commercial paper conduit of Purchaser, in which case,

                                      -6-
<PAGE>

upon receipt of written notice by Custodian such assignment, upon notice in the
form of Exhibit H hereto by Assignee to Custodian of such Purchaser's default,
Assignee may (i) require Custodian to act with respect to the related Submission
Packages solely in the capacity of custodian for, and bailee of, Assignee, but
nevertheless subject to and only in accordance with the terms of this Agreement,
(ii) require Custodian to hold such Submission Packages for the exclusive use
and benefit of Assignee, and (iii) assume the rights of such Purchaser under
this Agreement to furnish instructions to Custodian as to the disposition of
such Submission Packages and such rights shall be exercisable solely by
Assignee. Custodian shall give Assignee written acknowledgment of the receipt of
such notice by signing such notice and returning a copy thereof to Assignee;
provided that the Custodian shall not be required to provide such
acknowledgement until the date which is three (3) Business Days following the
date that the Custodian has received all information necessary to allow the
Custodian to complete its internal "Know Your Customer" procedures with respect
to such Assignee, except if the Assignee is an Affiliate of Purchaser or a
commercial paper conduit of Purchaser. In the event that, prior to receipt of
such notice from Assignee, Custodian delivered any Submission Package specified
in such notice to the related Purchaser, Takeout Investor or such Purchaser's
designee, Custodian shall so notify Assignee, and Custodian shall not be deemed
to hold such Submission Package for Assignee unless and until such Submission
Package is redelivered to Custodian. The failure of Custodian to give the
written acknowledgment referred to above shall not affect the validity of such
assignment, pledge or grant of a security interest from the related Purchaser to
its Assignee. The effects of Assignee's notice to Custodian set forth above
shall continue until Custodian is otherwise notified in writing by Assignee. The
terms of this Agreement shall not apply to any Submission Package delivered by
Custodian to Assignee.

            (c) Sellers and Purchasers acknowledge that Warehouse Lender, if
any, identified from time to time in each Warehouse Lender's Release to be
received by Custodian pursuant to Section 4(b)(i), is a warehouse lender for the
related Seller. The related Seller and Purchasers acknowledge that, in
accordance with the terms of each Warehouse Lender's Release to be received by
the Custodian pursuant to Section 4(b)(i), pursuant to which each such Warehouse
Lender conditionally releases its security interest in the Mortgage Loan
referred to in the related Warehouse Lender's Release, such release shall not be
effective until the Release Payment is remitted to the Warehouse Lender in
accordance with the Warehouse Lender's Wire Instructions. Until remittance of a
Release Payment to Warehouse Lender, the interest of the related Warehouse
Lender in a Mortgage Loan shall continue and remain in full force and effect.
The related Seller agrees that to the extent the Release Payment is greater than
the Purchase Price, the related Seller shall transfer on the Purchase Date the
difference between the Release Payment and the Purchase Price to the Warehouse
Lender in accordance with the Warehouse Lender's Wire Instructions.

            (d) If any additional documents relating to the Submission Package
come into the Custodian's possession, the provisions of paragraphs (a), (b) and
(c) of this Section 3 shall apply to such additional documents in the same
manner as such provisions apply to the related Submission Package.

            Section 4. Certification by Custodian; Delivery of Documents;
Disbursement Account; Settlement Account.

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<PAGE>

            (a) (1) With respect to each Mortgage Loan (excluding Wet Mortgage
Loans), being offered by related Seller for sale to the related Purchaser
pursuant to a Conduit Transaction, Sellers shall insure that Custodian and
Purchaser have each received the Loan Identification Data and the related
Seller's Wire Instructions necessary to complete a Request for Certification no
later than 3:00 p.m. New York City time one (1) Business Day preceding the
related Purchase Date (the "Dry Notice Time"). Further for each Mortgage Loan
(excluding Wet Mortgage Loans), Sellers shall insure that Custodian shall be in
possession of a Submission Package for each Mortgage Loan identified on a
Request for Certification no later than the Dry Notice Time and that no more
than 500 loan files are to be delivered to Custodian with respect to any one
Purchase Date. With respect to each Wet Mortgage Loan being offered by related
Seller for sale to the related Purchaser pursuant a Conduit Transaction, Sellers
shall (i) provide Purchaser with an estimate of the Purchase Price of such Wet
Mortgage Loans no later than prior to 3:00 pm New York City time one (1)
Business Day prior to the requested Purchase date and (ii) ensure that Custodian
and Purchaser have each received the Loan Identification Data and the related
Seller's Wire Instructions necessary to complete a Request for Certification no
later than 3:00 p.m. New York City time on the related Purchase Date.

            Upon receipt by Custodian of such Request for Certification,
Custodian shall ascertain whether it is in possession of a Submission Package
for each Mortgage Loan (except for Wet Mortgage Loans) identified on a Request
for Certification and shall certify in accordance with Section 20 herein, each
Submission Package and, no later than 12 Noon New York City time on the Business
Day of the related Purchase Date with respect to Mortgage Loans (except for Wet
Mortgage Loans) and 4:00 pm New York City time on the Business Day of the
related Purchase Date with respect to Wet Mortgage Loans, issue to the related
Purchaser by facsimile a Trust Receipt substantially similar to Exhibit D-1 or
Exhibit D-2, as applicable. Separate Trust Receipts shall be delivered with
respect to Wet Mortgage Loans substantially similar to Exhibit D-2. With the
exception of Wet Mortgage Loans as indicated on the Loan Identification Data, if
Custodian is not in possession of a Submission Package relating to a Mortgage
Loan identified on a Request for Certification, Custodian shall notify Sellers
and shall not include such Mortgage Loan in any Trust Receipt. Each Trust
Receipt or Wet Mortgage Loan Trust Receipt issued shall supersede any Trust
Receipt or Wet Mortgage Loan Trust Receipt bearing an earlier date.

            (2) With respect to Wet Mortgage Loans, Custodian shall establish
and maintain an account (the "Disbursement Account"), entitled "Disbursement
Account, Deutsche Bank National Trust Company, as Custodian for Aspen Funding,
Gemini Securitization Corp., LLC and Newport Funding Corp., Account No. 53079,"
into which Purchasers shall deposit the Purchase Price for Wet Mortgage Loans
with Custodian. With respect to any Wet Mortgage Loan, Purchasers shall remit
the Purchase Price to either (i) the Custodian for deposit into the Disbursement
Account no later than Noon New York City time on the related Purchase Date or
(ii) the applicable Warehouse Lender. Any funds in the Disbursement Account
shall remain uninvested.

            Provided that Custodian has received (i) the related wire transfer
as provided in the prior sentence and (ii) written notification from the
Purchaser to release such funds, on any

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related Purchase Date, the Custodian shall be permitted to disburse funds from
the Disbursement Account pursuant to the related Seller's Wire Instructions
provided by the related Seller. In no event shall Custodian be obligated to
disburse funds if Custodian has not received sufficient funds pursuant to
Section 4(a)(2) above. Custodian shall have no obligation to review or verify
Seller's Wire Instructions.

            In connection with the funding of any Wet Mortgage Loans or the
release of any other Mortgage Loan from the warehouse facility of the related
Seller simultaneously with the purchase of such Mortgage Loan by the related
Buyer, the Sellers shall deposit into the Disbursement Account (or provide to
Custodian for deposit into the Disbursement Account on such Business Day) an
amount (the "Seller Funded Wire Amount") equal to the difference between the
amount required to originate or release such Mortgage Loan from warehouse
lender's interest and the amount to be funded by such Buyer from the
Disbursement Account in accordance herewith. Custodian shall not be authorized
to disburse funds from the Disbursement Account unless and until Sellers cover
any shortfalls related to the Disbursement Account.

            (b) With respect to each Request for Certification, prior to the
delivery of the a Trust Receipt by Custodian:

            (i) Custodian shall review each applicable set of documents
      comprising the Submission Package and shall ascertain whether (A) each
      document required by this Agreement to be in such Submission Package is in
      the Custodian's possession, (B) each document in the Custodian's
      possession conforms to the loan number, property address, property city,
      property state, property zip code, original rate and original balances as
      set forth in the Loan Identification Data attached as Schedule B, (C) each
      document appears regular on its face, (D) each document appears on its
      face to conform to the requirements of Exhibit A-1 or Exhibit B-1, as
      applicable and (E) each Mortgage Loan is listed on a schedule attached to
      a Warehouse Lender's Release or a Seller's Release, as the case may be.

            (ii) If Custodian determines that the documents in the Submission
      Package and the Mortgage Loan to which they relate conform in all respects
      with Section 4(b)(i), Custodian shall include such Mortgage Loan in the
      Trust Receipt and, assuming the related Purchaser does not notify
      Custodian that it will not purchase a particular Mortgage Loan, in the
      Trust Receipt issued that day to Purchasers. With the exception of Wet
      Mortgage Loans as indicated on the Loan Identification Data attached as
      Schedule B, if documents in the Submission Package do not conform in all
      respects with Section 4(b)(i) or are missing and/or do not conform (except
      as specified in Section 4(b)(i)), Custodian shall not include such
      Mortgage Loan in any Trust Receipt.

            (c) As outlined in Section 4(a), Custodian shall deliver to
Purchasers, no later than 6:00 p.m. Pacific Time on the Business Day of the
related Purchase Date, by facsimile transmission followed by overnight courier a
cumulative Trust Receipt. Each cumulative Trust Receipt should include: (i) all
Mortgage Loans that Custodian has certified on all prior Purchase Dates that
Purchasers have not communicated to Custodian their release of interest in and
(ii) the collateral location pursuant to the Mortgage Loan Schedule of each
Mortgage Loan appearing on this report. Each Trust Receipt shall be deemed a
certification by the Custodian that the

                                      -9-
<PAGE>

Custodian has completed the procedures set forth in Sections 4(a) and 4(b)(i)
hereof and a certification that it is holding each related Submission Package
for the benefit of Purchaser in accordance with the terms hereof.

            (d) With respect to Wet Mortgage Loans, the delivery of the Loan
Identification Data to the Custodian by the related Seller shall be deemed to
constitute required documents with respect to the related Wet Mortgage Loan (and
shall be deemed to be a certification by such Seller that such Mortgage Loan is
a Wet Mortgage Loan) and the documents specified in Section 4(b)(i) above shall
not be required to be delivered with respect to such Wet Mortgage Loan on the
related Purchase Date. Notwithstanding the foregoing, the related Seller shall
deposit with the Custodian the documents described in Section 4(b)(i) above for
such Wet Mortgage Loan as soon as possible and, in any event, within seven (7)
Business Days of the related Purchase Date. The Custodian shall notify the
related Purchaser within one (1) Business Day of the failure by the related
Seller to deliver any document by the time provided in the previous sentence.
Upon deposit of such documents with Custodian, Custodian shall review such
documents, shall promptly notify the related Purchaser if such documents do not
comply with the requirements contained in Section 4(b)(i) and shall indicate on
its records that Custodian maintains possession of such documents for the
related Purchaser hereunder. Each Seller hereby represents, warrants and
covenants to each Purchaser and Custodian that each Seller and any person or
entity acting on behalf of such Seller that has possession of any of the
documents described in Section 4(b)(i) above for such Wet Loan prior to the
deposit thereof with Custodian will hold such documents in trust for the related
Purchaser.

            (e) All documents comprising a Submission Package relating to
Mortgage Loans included in a Trust Receipt shall be delivered by Custodian to
the Takeout Investor specified by Seller via overnight courier in accordance
with the Delivery Instructions and under cover of a fully completed Notice of
Bailment prepared by Custodian in accordance with the terms of the applicable
Bailee Letter. Custodian shall not deliver any Submission Package to any
potential Takeout Investor unless such Takeout Investor was identified by
Sellers to the related Purchaser on the Purchase Date in the Loan Identification
Data or as agreed to in writing (which may be an electronic writing) by such
Purchaser. Custodian shall confirm prior to delivery of any documents to any
Takeout Investor that such Takeout Investor has executed a Bailee Letter. In
those cases where a copy of any intervening mortgage assignment, or an
unrecorded original of any intervening mortgage assignment are delivered to the
Custodian, Sellers shall promptly cause the original of such instrument to be
recorded. Upon receipt of one written approval from a Purchaser, such written
approval shall, unless Custodian receives written or electronic notice from a
Purchaser to the contrary, be deemed to apply to all Delivery Instructions
delivered in the future by Sellers that list such location. Unless required to
be held by applicable law, following delivery by Custodian of the Submission
Package to Takeout Investor, all remaining documents, if any, not included in
such Submission Package shall be delivered to the Seller.

            (f) At any time following the delivery of a Trust Receipt, in the
event Custodian becomes aware of any noncompliance in any respect with Section
4(b)(i) with respect to a related Submission Package or the related forms,
including the return of documents to the Custodian from Takeout Investor due to
a defect in such documents or if Takeout Investor fails to purchase any Mortgage
Loan by the related Cure Date, the Custodian shall give prompt electronic notice
of such defect to the related Purchaser, followed by a written specification

                                      -10-
<PAGE>

thereof to the related Purchaser within one Business Day. In addition, Custodian
shall provide written notice to the related Purchaser and the related Seller in
the event that any documents remain in the possession of a Takeout Investor for
ten days and the related Mortgage Loans have not been purchased by Takeout
Investor prior to such date.

            (g) (i) Upon release of a Mortgage Loan, the Custodian shall amend
the Trust Receipt to reflect such release, and shall deliver to the related
Purchaser such amended Trust Receipt.

            (ii) The Custodian has established and shall maintain that certain
non interest bearing segregated trust account, Acct No. 53135 (the "Settlement
Account"), in the name of the Sellers. The Purchasers shall possess all right,
title, and interest in all funds from time to time on deposit in, and assets
credited to, the Settlement Account and in all proceeds thereof. The Custodian
and Sellers hereby acknowledge and agree that the Settlement Account is subject
to the exclusive dominion and control of the Purchasers, and the Custodian shall
transfer funds from the Settlement Account solely in accordance with
instructions from a Purchaser. Funds held in the Settlement Account shall not be
invested.

            (iii) The Custodian shall pay to Purchasers all amounts on deposit
in the Settlement Account by 4:00 p.m. (New York City time) on each Business
Day. All amounts deposited in the Settlement Account after 4:00 pm. (New York
City time) on each Business Day shall be paid by the Custodian to the Purchasers
on the following Business Day. The sellers shall provide the Purchasers and
Custodian with a daily reconciliation of amounts received in the Settlement
Account

            (h) The Custodian is hereby authorized upon receipt of written
request of Servicer to release Mortgage Files relating to Mortgage Loans in the
possession of the Custodian, for the purpose of liquidation, servicing or
correcting documentary deficiencies relating thereto against a request for
release of the Mortgage Files and receipt (a "Request for Release and Receipt")
executed by Servicer in the form of Exhibit M hereto, which Request for Release
and Receipt must also be executed by the related Purchaser(s) in the event that
more than one hundred (100) Mortgage Files would be released following such
requested release. The Custodian shall promptly notify the related Purchaser(s)
of the occurrence of each such release of Mortgage Files and shall keep track of
each such release of Mortgage Files. The related Purchaser(s) hereby agrees to
respond to a Request for Release and Receipt, via facsimile, no later than one
(1) Business Day after such Purchaser's receipt thereof. The Servicer shall
return to the Custodian each Mortgage File previously released by the Custodian
within ten (10) Business Days after receipt thereof, unless Servicer has marked
the related Request for Release "Mortgage Loan Paid in Full". Each Seller and
Servicer hereby further represent and warrant, jointly and severally, to the
Purchasers that any such request by the Servicer for release of Collateral shall
be solely for the purposes set forth in the Request for Release and Receipt.

            Section 5. [Reserved].

            Section 6. Default. If Sellers fail to fulfill any of their
obligations under the Purchase Agreement or hereunder or in connection with the
exercise by Purchaser of any remedy pursuant to Section 3 of the Purchase
Agreement then, subject to the provisions of Section 3(b)

                                      -11-
<PAGE>

hereof, a Purchaser may, by written or electronic notice to Custodian, (a)
appoint Custodian as its delegate to complete the endorsements on behalf of such
Purchaser on the Mortgage Notes held by Custodian and to complete and record at
Purchasers' expense the related blank Assignments of Mortgages relating to the
affected Mortgage Loans in accordance with such Purchaser's instructions and,
when applicable, (b) require Custodian to deliver to Purchaser, Takeout Investor
or Successor Servicer the Submission Packages (or any portion thereof specified
by Purchaser) in Custodian's possession or under Custodian's control to which
the failure relates. If Purchasers fail to purchase Mortgage Loans as provided
for under the Purchase Agreement or hereunder, Custodian shall hold the Mortgage
Loans for the benefit of the related Seller and shall act under instructions
from the related Seller.

            Section 7. Access to Documents. Upon 48 hours prior written notice
to Custodian, each Purchaser (and if the Mortgage Loans have been assigned,
Assignee) and its agents, accountants, attorneys and auditors will be permitted
during normal business hours at its office to examine and copy at their expense
the Submission Packages, documents, records and other papers in possession of or
under the control of Custodian relating to any or all of the Mortgage Loans in
which a Purchaser has an interest. Upon the written or electronic request of
Purchaser (or, if applicable, Assignee) and at the cost and expense of
Purchasers (or, if applicable, Assignee), Custodian shall provide Purchasers
(or, if applicable, Assignee) with copies of the Mortgage Notes, Assignments of
Mortgage and other documents in Custodian's possession relating to any of the
Mortgage Loans in which a Purchaser (or, if applicable, Assignee) has an
interest. In addition, upon the written or electronic request of a Purchaser,
Custodian shall provide such Purchaser with an electronic transmission
containing a list of all the Mortgage Loans for which the Custodian holds
documents pursuant to this Custodial Agreement and a list of the documents held
by Custodian with respect to each such Mortgage Loan.

            Section 8. Custodian's Fees and Expenses; Successor Custodian;
Standard of Care.

            (a) The Sellers agree to pay the Custodian such fees and expenses
for its services under this Agreement as are set forth in a separate agreement
among Custodian and Sellers, and shall further pay or reimburse the Custodian
upon its request for all reasonable expenses, disbursements and advances
incurred or made by the Custodian in accordance with this Agreement or any other
documents executed in connection herewith (including, without limitation,
attorney's fees and expenses). The payment of the Custodian's fees and expenses
in connection herewith, shall be the joint and several obligation of Sellers.
Custodian has no lien on, and shall not attempt to place a lien on, or assert an
interest in, any of the Submission Package, Mortgage Loans or proceeds thereof
to secure the payment of its fees and expenses. The obligations of the Sellers
under this Section 8 shall survive the termination of this Agreement and the
resignation or removal of Custodian.

            (b) Custodian or any successor Custodian may resign at any time by
giving sixty (60) days' prior written notice to Sellers and Purchasers. Such
resignation shall take effect upon the earlier of (i) the appointment of a
successor Custodian by Purchasers with the prior written consent of the Sellers
and delivery of all the Submission Packages and

                                      -12-
<PAGE>

any related documents in Custodian's possession to the successor Custodian in
accordance with the written or electronic direction of the Purchasers, and (ii)
the delivery of all the Submission Packages and any related documents in
Custodian's possession to the Purchasers or their designee pursuant to (c) below
after expiration of said sixty (60) days. Sellers shall be responsible for
reimbursing Custodian for its expenses associated with delivery of the
Submission Packages and related documents to Purchasers.

            (c) In the event of any such resignation, Custodian shall promptly
transfer to the successor Custodian all Submission Packages and related
documents in Custodian's possession and the successor Custodian shall hold such
Submission Packages and related documents in accordance with this Agreement. If
Purchasers direct the removal of Custodian, Purchasers shall be responsible for
all expenses associated with the transfer of the Submission Packages and any
related documents in Custodian's possession and for any fee of the successor
Custodian in excess of the fees of the initial Custodian hereunder. In any case,
Custodian shall not be responsible for payment of fees to any successor
Custodian. The Purchasers shall have sixty (60) days in which to appoint and
designate an acceptable successor Custodian with the prior written consent of
the Sellers. If the Purchasers fail to appoint a successor Custodian within such
60-day period, then Custodian shall deliver possession and custody of the
Submission Packages and any related Submission Packages in Custodian's
possession to Purchasers at the address specified on the cover page hereof, or
if a timely written designation is received by Custodian, to any designee of
Purchasers.

            (d) Custodian shall have responsibility only for the Submission
Packages and their contents which have been actually delivered to it and which
have not been released to Sellers, Purchasers, the Takeout Investor or Assignee
or their respective agent or designee in accordance with this Agreement. The
standard of care to be exercised by Custodian in the performance of its duties
under this Agreement shall be to exercise the same degree of care as Custodian
exercises when it holds similar mortgage loan documents as security for similar
loans or warehouse loans. Custodian is an agent, bailee and custodian only and
is not intended to be, nor shall it be construed to be (except only as agent,
bailee and custodian), a representative, trustee or fiduciary of or for either
Sellers, Purchasers or Assignee. The Custodian shall not be bound in any way by
any agreement or contract other than this Agreement and the exhibits and
schedules hereto and any other agreement to which it is a party. The Custodian
shall not be required to ascertain or inquire as to the performance or
observance of any of the conditions or agreements to be performed or observed by
any other party, except as specifically provided in this Agreement and the
exhibits and schedules hereto. The Custodian disclaims any responsibility for
the validity or accuracy of the recitals to this Agreement and any
representations and warranties contained herein, unless specifically identified
as recitals, representations or warranties of the Custodian.

            (i) Throughout the term of this Agreement, the Custodian shall have
      no responsibility for ascertaining the value, collectability,
      insurability, recordability, enforceability, priority, perfection,
      effectiveness or suitability of any Collateral, the title of any party
      therein, the validity or adequacy of the security afforded thereby, or the
      validity of this Agreement (except as to Custodian's authority to enter
      into this Agreement and to perform its obligations hereunder).

            (ii) The Custodian shall not be under any duty to determine or pass
      upon the genuineness, validity or legal sufficiency of any of the
      documents constituting part of any

                                      -13-
<PAGE>

      Submission Package, and shall be entitled to assume that all documents
      constituting part of such files are genuine and valid and that they are
      what they purport to be, and that any endorsements or assignments thereof
      are genuine and valid.

            (iii) No provision of this Agreement shall require the Custodian 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 and powers, if, in its sole judgment, it shall believe that
      repayment of such funds or indemnity satisfactory to it against such risk
      or liability is not assured to it.

            (iv) The Custodian is not responsible for preparing or filing any
      reports or returns relating to federal, state or local income taxes with
      respect to this Agreement, other than for the Custodian's compensation or
      for reimbursement of expenses.

            (v) In the absence of bad faith on the part of Custodian, Custodian
      may conclusively rely, as to the truth of the statements expressed
      therein, upon any certificates furnished to Custodian which conform to the
      requirements of this Agreement.

            (vi) Neither the Custodian nor any of its officers, directors,
      employees and agents shall not be liable with respect to any action taken
      or omitted to be taken by it in good faith in accordance with any
      direction of the Purchasers given under this Agreement.

            (vii) Custodian may conclusively rely and shall be fully protected
      in acting or refraining from acting upon any resolution, certificate,
      statement, instrument, opinion, report, notice, request, consent, order,
      approval or other paper or document believed by it to be genuine and to
      have been signed or presented by the proper party or parties.

            (viii) Custodian may consult with counsel and any written opinion of
      counsel shall be full and complete authorization and protection in respect
      of any action taken or omitted by it hereunder in good faith and in
      accordance with such advice or opinion of counsel.

            (ix) Custodian shall not invest or reinvest any cash held in the
      Disbursement Account in the absence of timely and specific written
      investment direction from the Purchasers. In no event shall Custodian be
      liable for the selection of investments or for investment losses incurred
      thereon. Custodian shall have no liability in respect of losses incurred
      as a result of the liquidation of any investment prior to its stated
      maturity or as a result of the failure of the Purchaser to provide timely
      written investment direction.

            (x) Each Seller, jointly and severally, hereby indemnifies, defends
      and holds Custodian and its officers, directors, employees and agents
      harmless from and against any claim, legal action, liability or loss that
      is initiated against or incurred by Custodian and its officers, directors,
      employees and agents, including court costs and reasonable attorney's fees
      and disbursements, in connection with Custodian's performance of its
      duties under this Agreement, including those involving ordinary
      negligence, but excluding only those involving gross negligence or willful
      misconduct of Custodian. Notwithstanding anything to the contrary
      contained herein, this provision shall survive

                                      -14-
<PAGE>

      the termination of this Agreement. The Custodian shall have the power to
      employ such agents as it may reasonably deem necessary or appropriate in
      the performance of its duties and the exercise of its powers under this
      Agreement.

            (e) Neither the Custodian nor any of its officers, directors,
employees and agents shall incur any liability to any Person for its acts or
omissions hereunder, except as may result from its negligence or willful
misconduct. The parties each (for itself and any person or entity claiming
though it) hereby releases, waives, discharges, exculpates and covenants not to
sue the Custodian for any action taken or omitted under this Agreement except to
the extent caused by the Custodian's gross negligence or willful misconduct.
Notwithstanding anything contained herein to the contrary, the parties agree
that no party hereunder nor any of its directors, officers or employees shall be
liable to any other party hereunder for any special, consequential or punitive
damages whatsoever.

            (f) Custodian undertakes to perform such duties and only such duties
as are specifically set forth in this Agreement, it being expressly understood
that there are no implied duties hereunder. Whenever in the administration of
the provisions of this Agreement the Custodian shall deem it necessary or
desirable that a matter be proved or established prior to taking or suffering
any action hereunder, such matter (unless other evidence in respect thereof be
herein specifically prescribed) may, in the absence of negligence or bad faith
on the part of the Custodian, be deemed to be conclusively proved and
established by a certificate signed by one of the Purchaser's officers and
delivered to the Custodian and such certificate, in the absence of negligence or
bad faith on the part of the Custodian, shall be full warrant to the Custodian
for any action taken, suffered or omitted by it under the provisions of this
Agreement upon the faith thereof.

      In order to comply with laws, rules, regulations and executive orders in
effect from time to time applicable to banking institutions, including those
relating to the funding of terrorist activities and money laundering
("Applicable Law"), the Custodian is required to obtain, verify and record
certain information relating to individuals and entities which maintain a
business relationship with the Custodian. Accordingly, each of the parties
agrees to provide to the Custodian upon its request from time to time such
identifying information and documentation as may be available for such party in
order to enable the Custodian to comply with Applicable Law.

            Section 9. Assignment by Purchasers. Each Purchaser shall have free
and unrestricted use of the Mortgage Loans and may assign all of its right,
title and interest in and to some or all of the Mortgage Loans purchased by such
Purchaser pursuant to the Purchase Agreement and all rights of such Purchaser
under the Purchase Agreement (and this Agreement) in respect of such Mortgage
Loans represented thereby to any Assignee. The Sellers hereby irrevocably
consent to any such assignment subject to the rights of any Takeout Investor.
Upon receipt of written notice to the Custodian of any such assignment in the
form attached hereto as Exhibit I, the Custodian shall mark its records to
reflect the pledge or assignment of the Mortgage Loans by the related Purchaser
to the Assignee. The Custodian's records shall reflect the pledge or assignment
of the Mortgage Loans by the related Purchaser to the Assignee until such time
as the Custodian receives written instructions from such Purchaser with consent
from the Assignee that the Mortgage Loans are no longer pledged or assigned by
such Purchaser to the Assignee, at which time the Custodian shall change its
records to reflect the release of the pledge

                                      -15-
<PAGE>

or assignment of the Mortgage Loans, and that the Custodian is holding the
Mortgage Loans, as custodian for, and for the benefit of, such Purchaser.

            If the related Purchaser has notified the Custodian in writing of
such assignment or pledge by delivery to the Custodian of a written notice in
the form of Exhibit I hereto, then, upon delivery of notice in the form of
Exhibit H by Assignee to the Custodian of the such Purchaser's default, Assignee
may, subject to any limitations in any agreement between Assignee and such
Purchaser, (i) require Custodian to act with respect to the related Mortgage
Loans solely in the capacity of custodian for, and bailee of, Assignee, but
nevertheless subject to and only in accordance with the terms of this Custodial
Agreement, (ii) require Custodian to hold such Mortgage Loans for the exclusive
use and benefit of Assignee, and (iii) assume the rights of such Purchaser under
this Agreement to furnish instructions to the Custodian as to the disposition of
such Mortgage Loans and such rights shall be exercisable solely by Assignee. In
addition, within three (3) Business Days of receipt of such notice to the
Custodian in the form of Exhibit H and receipt by the Custodian of the Trust
Receipt from the Assignee, the Custodian shall deliver, in accordance with the
written instructions of the Assignee, a Trust Receipt issued in the name of the
Assignee and to the place indicated in any such written direction from the
Assignee. The Custodian shall assume that any assignment from a Purchaser to
Assignee is subject to no limitations that are not expressly set forth in this
Custodial Agreement; provided that the Custodian shall not be required to issue
a Trust Receipt to such Assignee until the date which is three (3) Business Days
following the date that the Custodian has received all information necessary to
allow the Custodian to complete its internal "Know Your Customer" procedures
with respect to such Assignee, except if the Assignee is an Affiliate of
Purchaser or a commercial paper conduit of Purchaser. Until such time as the
Custodian receives notice in the form of Exhibit H from the Assignee that there
exists an event of default with respect to a pledge or assignment of its
interest in the Mortgage Loans and Mortgage Files, the Custodian shall take
directions solely from the related Purchaser.

            Section 10. Insurance. Custodian shall, at its own expense, maintain
at all times during the existence of this Agreement such (a) fidelity insurance,
(b) theft of documents insurance, (c) forgery insurance and (d) errors and
omissions insurance as Custodian deems appropriate, prudent and customary.

            Section 11. Representations, Warranties and Covenants.

            (a) By Custodian. Custodian hereby represents and warrants to, and
covenants with, Sellers and Purchasers that, as of the date hereof and at all
times while Custodian is performing services under this Agreement:

            (i) Custodian is duly organized, validly existing and in good
      standing under the laws of the jurisdiction of its organization and fully
      satisfies the requirements for acting as a GNMA custodian, a Fannie Mae
      custodian and a Freddie Mac custodian;

            (ii) Custodian has the full power and authority to hold each
      Mortgage Loan and to enter into and perform its duties and obligations as
      contemplated by this Agreement, has duly authorized the execution,
      delivery and performance of this Agreement and has duly executed and
      delivered this Agreement, and this Agreement

                                      -16-
<PAGE>

      constitutes a legal, valid and binding obligation of Custodian,
      enforceable against it in accordance with its terms, except as the
      enforcement thereof may be limited by applicable receivership,
      conservatorship or similar debtor relief laws and except that certain
      equitable remedies may not be available regardless of whether enforcement
      is sought in equity or law; and

            (iii) Custodian is not an affiliate of any Seller.

            (b) By Sellers. Each Seller, jointly and serverally, hereby
represent and warrant to, and covenants with, Custodian and Purchasers that, as
of the date hereof and throughout the term of this Agreement:

            (i) Each Seller is duly organized, validly existing and in good
      standing under the laws of the jurisdiction of its incorporation;

            (ii) Each Seller has the full power and authority to hold each
      Mortgage Loan and to enter into and consummate all transactions
      contemplated by this Agreement, has duly authorized the execution,
      delivery and performance of this Agreement and has duly executed and
      delivered this Agreement, and this Agreement constitutes a legal, valid
      and binding obligation of each Seller, enforceable against it in
      accordance with its terms, except as the enforcement thereof may be
      limited by applicable receivership, conservatorship or similar debtor
      relief laws and except that certain equitable remedies may not be
      available regardless of whether enforcement is sought in equity or law;
      and

            (iii) Sellers will provide, as a condition of closing, an executed
      Officer's Certificate regarding title insurance in the form of Exhibit L.

            (iv) No Seller is an Affiliate of the Custodian.

            (c) By Purchasers. Each Purchaser hereby represents and warrants to,
and covenants with, Custodian and Sellers that, as of the date hereof and
throughout the term of this Agreement:

            (i) Each Purchaser is duly organized, validly existing and in good
      standing under the laws of the jurisdiction of its incorporation; and

            (ii) Each Purchaser has the full power and authority to hold each
      Mortgage Loan and to enter into and consummate all transactions
      contemplated by this Agreement, has duly authorized the execution,
      delivery and performance of this Agreement and has duly executed and
      delivered this Agreement, and this Agreement constitutes a legal, valid
      and binding obligation of each Purchaser, enforceable against it in
      accordance with its terms, except as the enforcement thereof may be
      limited by applicable receivership, conservatorship or similar debtor
      relief laws and except that certain equitable remedies may not be
      available regardless of whether enforcement is sought in equity or law.

            Section 12. No Adverse Interests. By its acceptance of each
Submission Package, Custodian covenants and warrants to the related Purchaser
that: (a) as of the date of payment by such Purchaser of the Purchase Price,
Custodian, solely in its capacity as Custodian, (i) holds no

                                      -17-
<PAGE>

adverse interests, by way of security or otherwise, in the related Mortgage
Loan, and (ii) has no interest in or lien upon the Submission Packages which it
holds as custodian for Purchasers; and (b) Custodian hereby waives and releases
any such interest in such Mortgage Loan which it, acting solely in its capacity
as Custodian, has or which it may thereafter acquire prior to the time of
release of such Mortgage Loan from the terms of this Agreement.

            Section 13. Amendments. This Agreement may be amended only by
written agreement of Sellers, Purchasers and Custodian except that, if this
Agreement shall have been assigned by a Purchaser with written notice of such
assignment given to Sellers and Custodian, no amendment shall be effective
unless the amendment is also signed by Assignee. Purchasers shall give at least
five (5) days' prior written notice to Assignee of any proposed amendment to
this Agreement and shall furnish Assignee with a copy of each such amendment
within five (5) days after it is executed and delivered. This Agreement,
together with the Exhibits, Schedules and other writings referred to herein or
delivered pursuant hereto, constitutes the entire agreement between the parties
hereto with respect to the subject matter hereof and supersedes all prior
agreements and understandings, both written and oral, between the parties with
respect to the subject matter hereof.

            Section 14. Execution in Counterparts. This Agreement may be
executed in any number of counterparts, each of which shall be deemed an
original, but all of which shall constitute one and the same instrument.

            Section 15. Agreement for Exclusive Benefit of Parties; Assignment.
This Agreement is for the exclusive benefit of the parties hereto and their
respective successors and permitted assigns hereunder and shall not be deemed to
give any legal or equitable right, remedy or claim to any other person
whatsoever. This Agreement shall bind the parties hereto and their respective
successors, but, except for the assignments provided in Sections 3(b) and 9,
shall not be assigned or pledged by any party without the prior written consent
of the other parties. Written notice from Assignee to Custodian (with a copy to
the related Purchaser) that the related Purchaser has defaulted in any material
respect under any funding or loan agreement relating to the financing of a such
Purchaser's purchase of Mortgage Loans shall be conclusive for all purposes of
this Agreement.

            Section 16. Effect of Invalidity of Provisions. In case any one or
more of the provisions contained in this Agreement should be or become invalid,
illegal or unenforceable in any respect, the validity, legality and
enforceability of the remaining provisions contained herein or therein shall in
no way be affected, prejudiced or disturbed thereby.

            Section 17. Governing Law. This Agreement shall be governed by and
construed in accordance with the laws of the State of New York, without regard
to conflict of laws rules.

            Section 18. Consent to Service. Each party irrevocably consents to
the service of process by registered or certified mail, postage prepaid, to it
at its address given in or pursuant to Section 19.

            Section 19. Notices. Any notices, consents, directions and other
communications given under this Agreement shall be in writing and shall be
deemed to have been duly given

                                      -18-
<PAGE>

when delivered by facsimile or electronic transmission, or personally delivered
at, or sent by overnight courier to the addresses of the parties hereto set
forth on the cover page hereof or such other address as any party shall give in
a notice to the other parties pursuant to this Section 19.

            Section 20. Construction. The headings in this Agreement are for
convenience only and are not intended to influence its construction. References
to Sections and Exhibits in this Agreement are to the Sections of and Exhibits
to this Agreement. The Exhibits are part of this Agreement. In this Agreement,
the singular includes the plural, the plural the singular, and the words "and"
and "or" are used in the conjunctive or disjunctive as the sense and
circumstances may require.

            Section 21. Submission to Jurisdiction. With respect to any claim
arising out of this Agreement each party (a) irrevocably submits to the
nonexclusive jurisdiction of the courts of the State of New York and the United
States District Court located in the Borough of Manhattan in New York City, and
(b) irrevocably waives (i) any objection which it may have at any time to the
laying of venue of any suit, action or proceeding arising out of or relating
hereto brought in any such court, (ii) any claim that any such suit, action or
proceeding brought in any such court has been brought in any inconvenient forum
and (iii) the right to object, with respect to such claim, suit, action or
proceeding brought in any such court, that such court does not have jurisdiction
over such party. Nothing herein will be deemed to preclude any party hereto from
bringing an action or proceeding in respect of this Agreement in any
jurisdiction other than as set forth in this Section 21.

            Section 22. WAIVER OF JURY TRIAL. EACH PARTY HERETO IRREVOCABLY
WAIVES, TO THE FULLEST EXTENT PERMITTED BY APPLICABLE LAW, ANY AND ALL RIGHT TO
TRIAL BY JURY IN ANY LEGAL PROCEEDING ARISING OUT OF OR RELATING TO THIS
AGREEMENT, ANY OTHER AGREEMENT OR THE TRANSACTIONS CONTEMPLATED HEREBY.

            Section 23. Joint and Several Liability. The liability of the
Sellers hereunder is joint and several. The Sellers hereby: (a) acknowledge and
agree that the Purchasers shall have no obligation to proceed against one Seller
before proceeding against the other Seller, (b) waive any defense to their
obligations under this Agreement, based upon or arising our of the disability or
other defense or cessation of liability of one Seller versus the other or of any
other Seller, (c) waive any right or subrogation or ability to proceed against
any Person until all amounts owed to Purchasers by Sellers pursuant to this
Agreement are paid in full and (d) any Purchase may proceed against any Seller.

                            [signature page follows]

                                      -19-
<PAGE>

      IN WITNESS WHEREOF, Sellers, Purchasers and Custodian have caused this
Agreement to be duly executed as of the date and year first above written.

                                          AMERICAN HOME MORTGAGE CORP.,
                                          as a Seller

                                          By:  /s/ Alan B. Horn
                                            ------------------------------------
                                          Name:  Alan B. Horn
                                          Title: Executive Vice President,
                                                 General Counsel and Secretary

                                          AMERICAN HOME MORTGAGE INVESTMENT
                                          CORP.,
                                          as a Seller

                                          By:  /s/ Alan B. Horn
                                            ------------------------------------
                                          Name:  Alan B. Horn
                                          Title: Executive Vice President,
                                                 General Counsel and Secretary

                                          AMERICAN HOME MORTGAGE SERVICING
                                          INC.,
                                          as Servicer

                                          By:  /s/ Alan B. Horn
                                            ------------------------------------
                                          Name:  Alan B. Horn
                                          Title: Executive Vice President,
                                                 General Counsel and Secretary

                                          ASPEN FUNDING CORP.,
                                          as a Purchaser

                                          By: /s/ Doris J. Hearn
                                            ------------------------------------
                                          Name:  Doris J. Hearn
                                          Title: Vice President

                                          GEMINI SECURITIZATION CORP. LLC,
                                          as a Purchaser

                                          By:  /s/ R. Douglas Donaldson
                                            ------------------------------------

<PAGE>

                                          Name:  R. Douglas Donaldson
                                          Title: Treasurer

                                          NEWPORT FUNDING CORP.,
                                          as a Purchaser

                                          By: /s/ Doris J. Hearn
                                            ------------------------------------
                                          Name:  Doris J. Hearn
                                          Title: Vice President

                                          DEUTSCHE BANK NATIONAL TRUST
                                          COMPANY,
                                          as Custodian

                                          By: /s/ Angel Sanchez
                                            ------------------------------------
                                          Name:  Angel Sanchez
                                          Title: Authorized Signer

<PAGE>

                                                                    EXHIBITA-1

                                  [RESERVED]

                                      -22-
<PAGE>

                                                                   EXHIBIT A-2

                                  [RESERVED]

                                      -23-
<PAGE>

                                                                      SCHEDULE A
                                                                  TO EXHIBIT A-2

                                  [RESERVED]

                                      -24-
<PAGE>

                                                                      SCHEDULE B

                                                                  TO EXHIBIT A-2

                                  [RESERVED]

                                      -25-
<PAGE>
                                                                     EXHIBIT B-1

                           CONDUIT SUBMISSION PACKAGE

      With respect to each Mortgage Loan being offered by the related Seller for
sale to the related Purchaser, pursuant to a Conduit Transaction, such Seller
shall deliver and release to Custodian the following documents:

            (i) The original Mortgage Note bearing all intervening endorsements
      from the originator to the last endorsee endorsed, "Pay to the order of
      _______, without recourse" and signed in the name of such Seller by an
      authorized officer of such Seller; (if applicable), the original
      assumption agreement, together with the original of any surety agreement
      or guaranty agreement relating to the Mortgage Note or any such assumption
      agreement, and if the Mortgage Note has been signed by a third party on
      behalf of the Mortgagor, a copy of the power of attorney or other
      instrument that authorized and empowered such Person to sign;

            (ii) A Mortgage meeting one of the following requirements:

                  (A) The original Mortgage bearing evidence that the Mortgage
            has been duly recorded in the records of the jurisdiction in which
            the Mortgaged Property is located; or

                  (B) A copy of the Mortgage certified by the originator or the
            related title company or escrowed closing agent or a certificate
            from the county recorders office;

            (iii) If the related Seller did not originate the Mortgage Loan, all
      original intervening assignments duly executed and acknowledged and in
      recordable form, evidencing the chain of mortgage assignments from the
      originator of the Mortgage Loan to the holder or record and/or a copy of
      each such intervening mortgage assignment or a certificate from the county
      recorder's office or a certificate from the related escrow closing agent
      the original of which has been duly recorded or delivered for recordation
      in the appropriate records of the jurisdiction where the Mortgage Property
      is located;

            (iv) Except with respect to any MERS Mortgage Loan, an original
      Assignment of Mortgage, in blank, in recordable form but unrecorded signed
      in the name of the related holder of record by an authorized officer;

            (v) If applicable, a Warehouse Lender's Release, from any Warehouse
      Lender having a security interest in the Mortgage Loans or, or if there is
      no Warehouse Lender with respect to such Mortgage Loans, a Seller's
      Release, from the related Seller, addressed to the related Purchaser,
      releasing any and all right, title and interest in such Mortgage Loans;

            (vi) Delivery Instructions; and

            (vii) A copy of the Commitment.

<PAGE>

                                                                     EXHIBIT B-2

                            [LETTERHEAD OF CUSTODIAN]

                          CONDUIT MASTER BAILEE LETTER

                                                  ___________, _____

[ADDRESS]

[_________]

Attention:

Ladies and Gentlemen:

      The undersigned Deutsche Bank National Trust Company ("Custodian"), as
custodian for [Aspen Funding Corp./Gemini Securitization Corp., LLC/Newport
Funding Corp.] ("Purchaser") shall from time to time deliver to ________
("Takeout Investor") original promissory notes ("Mortgage Notes") evidencing
certain mortgage loans ("Mortgage Loans"), along with certain other documents
comprising the related files ("Custodial Files") and, in each case, a Notice of
Bailment in the form of Schedule A hereto with respect to each Mortgage Loan
("Notice of Bailment"), for inspection by Takeout Investor prior to the possible
purchase by Takeout Investor of such Mortgage Loans pursuant to commitments
("Commitments") from certain sellers of Mortgage Loans ("Sellers"). Prior to its
delivery to Takeout Investor, all of Seller's right, title and interest in each
Mortgage Loan and proceeds thereof shall have been conveyed to Purchaser in
accordance with each Seller's agreement with Purchaser.

      Except as otherwise provided herein, each Custodial File so delivered to
Takeout Investor is to be held by Takeout Investor, as agent for Custodian, and
subject to only Purchaser's direction and control until released as provided
herein. The proceeds of the sale of each Mortgage Loan accepted for purchase by
Takeout Investor must be remitted immediately upon settlement by Takeout
Investor, by wire transfer in immediately available funds, in accordance with
the following wire instructions:

                        ________________________
                        ________________________
                        ABA #___________
                        A/C #____________
                        ________________________
                        Attn:  _________________

Takeout Investor shall be responsible for making certain that all of the
proceeds from the sale of each Mortgage Loan are received in accordance with the
wire transfer instructions set forth on each Notice of Bailment and Purchaser's
interest in the Mortgage Loans shall not be released until such funds are
received by Purchaser.

<PAGE>

      Upon Purchaser's receipt of all of the proceeds from the sale of a
Mortgage Loan in accordance with the wiring instructions in the applicable
Notice of Bailment, all of Purchaser's legal or equitable interest in the
Mortgage Loan shall terminate.

      All Mortgage Loan documents held by Takeout Investor which are received by
Takeout Investor from Custodian with respect to a Mortgage Loan that is not
purchased must be returned immediately to Custodian at the address for delivery
of documents set forth on the Notice of Bailment. Purchaser reserves the right
at any time, until a Mortgage Loan has been purchased by Takeout Investor, to
demand the return of the related Mortgage Documents to Custodian, and Takeout
Investor agrees to return to Custodian the Mortgage Documents pertaining to a
Mortgage Loan not purchased by Takeout Investor immediately upon such demand by
Purchaser.

      The persons listed on the attached Schedule B are the authorized
representatives ("Authorized Representatives") of Purchaser. Takeout Investor
shall not honor any communication from Sellers or any third party relating to a
Mortgage Loan, which is not confirmed by the written or telephonic consent of an
Authorized Representative of Purchaser, or until Purchaser has received the
required amount of proceeds of the sale of such Mortgage Loan.

      In the event Takeout Investor is not able for any reason to comply with
the terms of this Bailee Letter, Takeout Investor shall immediately return the
Submission Package to Custodian at the above address.

      Takeout Investor acknowledges that the Custodial File is being delivered
in accordance with its instructions. Takeout Investor shall not deliver a
Custodial File to any third party without the prior written consent of Purchaser
unless such third party is a wholly owned subsidiary of Takeout Investor or a
custodian and bailee of Takeout Investor who is receiving such Custodial File
with written notice of the bailment created by this Master Bailee Letter.

      In the event Takeout Investor is not able for any reason to comply with
the terms of this Master Bailee Letter, Takeout Investor shall immediately
return each Custodial File in Takeout Investor's possession to Custodian at the
address for delivery of documents set forth in the related Notice of Bailment.

      No deviation in performance of the terms of any previous bailment
agreement will alter any of Takeout Investor's duties or responsibilities as
provided herein.

<PAGE>

      By accepting delivery of a Custodial File containing a Notice of Bailment,
Takeout Investor shall be bound by the terms hereof. Please execute and return
the enclosed copy of this Master Bailee Letter in the enclosed self-addressed
envelope.

                                          Sincerely,

                                          Deutsche Bank National Trust
                                          Company,
                                          as Custodian

                                          By:
                                            ------------------------------------
                                          Name:
                                          Title:
                                          Dated: As of the date first set forth
                                                 above

Agreed to:

[CONDUIT]
(Takeout Investor)

By:
   -----------------------------
Name:
Title:
Dated: As of the date first set forth above

<PAGE>

                                                                      SCHEDULE A
                                                                  TO EXHIBIT B-2

                               NOTICE OF BAILMENT

[Conduit Address]

                  Re:   [Insert Description of Loan, including
                        Borrower's Name, Loan Amount and
                        Fannie Mae's Loan Number]

Ladies and Gentlemen:

      Pursuant to the Master Bailee Letter, dated , ____ (the "Master Bailee
Letter"), between you and Deutsche Bank National Trust Company (the
"Custodian"), you are hereby notified that the enclosed original promissory note
with respect to the referenced loan together with certain other documents
comprising the related file with respect to that loan (the "Mortgage Documents")
being hereby delivered to you herewith are to be held by you as agent of
Custodian (which holds the Mortgage Documents as custodian and bailee for the
benefit of [Aspen Funding Corp./Gemini Securitization Corp., LLC/Newport Funding
Corp.] ("Purchaser")).

      Any Mortgage Documents (or portion thereof) not purchased by you in
accordance with the provisions of the Applicable Guide shall be sent to the
Custodian by overnight courier to: [insert address for return of documents].

      In the event you elect to purchase the Mortgages subject to the Master
Bailee Letter, you shall pay the Trade Price to the Purchaser by wire transfer
based upon the following instructions:

                        ______________________
                        ______________________
                        ABA #____________
                        A/C #____________
                        ______________________
                        Attn:_________________

      Any questions relating to the Mortgage Documents should be referred to the
Purchaser at (203) 625-2700.

                                    Sincerely,

                                    By:   _________________________________
                                    Name:
                                    Title:

<PAGE>

                                                                      SCHEDULE B
                                                                  TO EXHIBIT B-2

                     AUTHORIZED REPRESENTATIVES OF PURCHASER

Name                    Title                   Authorized Signature
----                    -----                   --------------------

-------------------     -------------------     ---------------------

-------------------     -------------------     ---------------------

-------------------     -------------------     ---------------------

-------------------     -------------------     ---------------------

<PAGE>

                                                                       EXHIBIT C

                            REQUEST FOR CERTIFICATION

<TABLE>
<CAPTION>
--------------------------------------------------------------------------------------------------------------------
Conduit Transaction

--------------------------------------------------------------------------------------------------------------------
Loan #   Original     Mortgagor   Property Address   Original    Note      ARM data (margin,    Maturity     Loan
        Loan Amount   First and    (street, city,    Loan Term   Rate     index,cap,floor,1st      Date      Type
                      Last Name     state, zip)                           rate adj, max rate,               (fixed
                                                                             1st pay date)                    or
                                                                                                          adjustable
--------------------------------------------------------------------------------------------------------------------
<S>    <C>            <C>        <C>                 <C>          <C>    <C>                    <C>       <C>

--------------------------------------------------------------------------------------------------------------------

--------------------------------------------------------------------------------------------------------------------

--------------------------------------------------------------------------------------------------------------------

--------------------------------------------------------------------------------------------------------------------

--------------------------------------------------------------------------------------------------------------------

--------------------------------------------------------------------------------------------------------------------

--------------------------------------------------------------------------------------------------------------------

--------------------------------------------------------------------------------------------------------------------

--------------------------------------------------------------------------------------------------------------------

--------------------------------------------------------------------------------------------------------------------

--------------------------------------------------------------------------------------------------------------------

--------------------------------------------------------------------------------------------------------------------
</TABLE>

<PAGE>

                                                                     EXHIBIT D-1

                                  TRUST RECEIPT

                                 MORTGAGE LOANS

                                                            Date:

      Deutsche Bank National Trust Company, as custodian (the "Custodian"),
hereby acknowledges that on the date of this Trust Receipt, [Aspen Funding
Corp./Gemini Securitization Corp., LLC/Newport Funding Corp.] ("Purchaser") has
been identified as the registered owner of this Trust Receipt evidencing
ownership of certain mortgage loans (the "Mortgage Loans") listed by identifying
number on the schedule attached to this Trust Receipt and further identified in
the books and records of the Custodian, interim serviced by American Home
Mortgage Servicing, Inc. ("Servicer"). The Mortgage Note and copy of the
recorded Mortgage (or deed of trust) for each Mortgage Loan are held by
Custodian, pursuant to the terms and conditions of that certain Custodial
Agreement dated as of June [__], 2006 (the "Agreement") among Purchaser, Seller,
[Aspen Funding Corp./Gemini Securitization Corp., LLC/Newport Funding Corp.],
American Home Mortgage Corp., American Home Mortgage Investment Corp. and
Custodian. To the extent not defined herein, the capitalized terms used herein
have the meanings assigned in the Agreement. This Trust Receipt is issued under
and is subject to the terms, provisions and conditions of the Agreement, to
which Agreement the holder of this Trust Receipt by virtue of the acceptance
hereof assents and by which such holder is bound.

      Any transfer of this Trust Receipt may be registered upon presentation of
this Trust Receipt by the transferee hereof, duly assigned to the transferee, at
the office of the Custodian.

      This Trust Receipt supersedes any Trust Receipt or Wet Mortgage Loan Trust
Receipt bearing an earlier date.

<PAGE>

      This Trust Receipt shall not be valid or become obligatory for any purpose
unless and until the Certificate of Authentication appearing below has been duly
executed by the Custodian.

      IN WITNESS WHEREOF, the Custodian has caused this Trust Receipt to be duly
executed.

                                    Deutsche Bank National Trust Company,
                                    as Custodian

                                    By:
                                       ----------------------------------
                                          Authorized Officer

CERTIFICATE OF AUTHENTICATION

This Trust Receipt is one of
the Trust Receipts issued under
the above-described Agreement.

Dated:

By:
   --------------------------
Authorized Officer

<PAGE>

                                                                     EXHIBIT D-2

                             WET LOAN TRUST RECEIPT

                                                            Date:

      Deutsche Bank National Trust Company, as custodian (the "Custodian"),
hereby acknowledges that on the date of this Wet Loan Trust Receipt, [Aspen
Funding Corp./Gemini Securitization Corp., LLC/Newport Funding
Corp.]("Purchaser") has been identified to it as the registered owner of this
Wet Loan Trust Receipt evidencing ownership of certain mortgage loans (the
"Mortgage Loans") listed by identifying number on the schedule attached to this
Wet Loan Trust Receipt and further identified in Loan Identification Data, to be
interim serviced by American Home Mortgage Servicing, Inc.("Servicer"). To the
extent not defined herein, the capitalized terms used herein have the meanings
assigned in the Agreement. This Wet Mortgage Loan Trust Receipt is issued under
and is subject to the terms, provisions and conditions of the Agreement, to
which Agreement the holder of this Wet Mortgage Loan Trust Receipt by virtue of
the acceptance hereof assents and by which such holder is bound.

      Any transfer of this Wet Mortgage Loan Trust Receipt may be registered
upon presentation of this Wet Mortgage Trust Receipt by the transferee hereof,
duly assigned to the transferee, at the office of the Custodian.

      This Wet Mortgage Trust Receipt supersedes any Wet Mortgage Trust Receipt
bearing an earlier date.

<PAGE>

      This Wet Mortgage Loan Trust Receipt shall not be valid or become
obligatory for any purpose unless and until the Certificate of Authentication
appearing below has been duly executed by the Custodian.

      IN WITNESS WHEREOF, the Custodian has caused this Wet Mortgage Loan Trust
Receipt to be duly executed.

                                    Deutsche Bank National Trust Company,
                                    as Custodian

                                    By:
                                       ----------------------------------
                                          Authorized Officer

CERTIFICATE OF AUTHENTICATION

This Trust Receipt is one of
the Trust Receipts issued under
the above-described Agreement.

Dated:

By:
   ------------------------------
Authorized Officer

<PAGE>

                                TRUST RECEIPT NO.

                                 MORTGAGE LOANS

Following are the  identifying  numbers of the Mortgage  Loans subject to this
Trust Receipt:

<PAGE>

                                                                     EXHIBIT E-1

                          [WAREHOUSE LENDER'S RELEASE]

[Aspen Funding Corp./Gemini Securitization Corp., LLC/Newport Funding Corp.]

Ladies and Gentlemen:

      We hereby release all right, interest or claim of any kind with respect to
the mortgage loan(s) referenced below, such release to be effective
automatically without any further action by any party, upon payment in full, in
one or more installments, from [Aspen Funding Corp./Gemini Securitization Corp.,
LLC/Newport Funding Corp.], in accordance with the wire instructions which we
delivered to you in a letter dated _______ __, 200__ ,in immediately available
funds, of an aggregate amount equal to the [______________________]

Loan *            Mortgagor         Address     City        State       Zip

-------------     --------------    ---------   --------    ---------   --------

                                          Very truly yours,

                                          [WAREHOUSE LENDER]

                                          By:
                                             ------------------------------
                                          Name:
                                          Title:

<PAGE>

                                                                     EXHIBIT E-2

Date:

                     [WAREHOUSE LENDER'S WIRE INSTRUCTIONS]

[Aspen Funding Corp./Gemini Securitization Corp., LLC/Newport Funding Corp.].

            Re: Aspen Funding Corp., Gemini Securitization Corp., LLC and
            Newport Funding Corp. Whole Loan Purchase Program with American
            Home Mortgage Corp. and  American Home Mortgage Investment Corp.

Ladies and Gentlemen:

      Set forth below are [Warehouse Lender's] wire instructions applicable
to the above-referenced Whole Loan Purchase Program.

Wire Instructions:

      Bank Name:
      City, State:
      ABA#:
      Account #:
      Account Name:

<PAGE>

      Please acknowledge receipt of this letter in the space provided below.
This letter supersedes and replaces (i) any prior notice specifying the name of
[Warehouse Lender] and setting forth wire instructions and (ii) any contrary
wire instructions contained in any form of release delivered by [Warehouse
Lender] to [Aspen Funding Corp./Gemini Securitization Corp., LLC/Newport Funding
Corp.] shall remain in effect until superseded and replaced by a letter, in the
form of this letter, executed by each of us and acknowledged by you.

                                    Very truly yours,

                                    [AMERICAN HOME MORTGAGE CORP./ [AMERICAN
                                    HOME MORTGAGE INVESTMENT CORP.]

                                    By: ________________________
                                    Name:
                                    Title:

                                    [WAREHOUSE LENDER(S)](1)

                                    By:  ________________________
                                    Name:
                                    Title:

Receipt Acknowledged By:

[ASPEN FUNDING CORP./GEMINI SECURITIZATION CORP., LLC/NEWPORT FUNDING CORP.]

By:  ________________________
Name:
Title:

By:  ________________________
Name:
Title:

----------------------------
(1) The authorized officer of each Warehouse Lender executing this letter
must be the same authorized officer as signs the Warehouse Lender's Release.
Not applicable if there is no Warehouse Lender.

<PAGE>

                                                                     EXHIBIT F-1

                               [SELLER'S RELEASE]

[Aspen Funding Corp./Gemini Securitization Corp., LLC/Newport Funding Corp.]
60 Wall Street
New York, New York 10005

Ladies and Gentlemen:

      With respect to the mortgage loan(s) referenced below (a) we hereby
certify to you that the mortgage loan(s) is not subject to a lien of any
warehouse lender and (b) we hereby release all right, interest or claim of any
kind with respect to such mortgage loan, such release to be effective
automatically without any further action by any party upon payment from
Purchasers to the related Seller of an aggregate amount equal
[_____________________________________].

Loan       Mortgagor     Street Address        City             State   Zip

--------   -----------   --------------------  ---------------  ------  --------

                                    Very truly yours,

                                    [AMERICAN HOME MORTGAGE CORP.] [AMERICAN
                                    HOME MORTGAGE INVESTMENT CORP.]

                                    By: __________________________________
                                    Name:
                                    Title:

<PAGE>

                                                                     EXHIBIT F-2

Date:

                          [SELLER'S WIRE INSTRUCTIONS]

[Aspen Funding Corp./Gemini Securitization Corp., LLC/Newport Funding Corp.]

      Re:   Custodial Agreement dated as of  June [__], 2006,
            by and among Aspen Funding Corp., Gemini Securitization Corp.,
            LLC, Newport Funding Corp., American Home Mortgage Corp.,
            American Home Mortgage Investment Corp. and Deutsche Bank
            National Trust Company

Ladies and Gentlemen:

      Capitalized terms used herein and not defined herein shall have the
meanings ascribed to such terms in the above-referenced Custodial Agreement.

      Set forth below are the related Seller's Wire Instructions applicable to
the above-referenced Custodial Agreement.

Wire Instructions:

      Bank Name:
      City, State:
      ABA#:
      Account #:
      A/C Name:

<PAGE>

      Please acknowledge receipt of this letter in the space provided below and
return it to the related Seller. This letter supersedes and replaces any prior
notice specifying the name of the related Seller and such Seller's Wire
Instructions and shall remain in effect until superseded and replaced by a
letter, in the form of this letter, executed by us and acknowledged by you.

                                    Very truly yours,

                                    [AMERICAN HOME MORTGAGE CORP./AMERICAN
                                    HOME MORTGAGE INVESTMENT CORP.](2)

                                    By:
                                        ------------------------------------
                                    Name:
                                    Title:

Receipt acknowledged by:

[ASPEN FUNDING CORP./GEMINI SECURITIZATION CORP., LLC/NEWPORT FUNDING CORP.]

By:
    ---------------------------
Name:
Title:

By:
    ---------------------------
Name:
Title:

(2) The authorized officer executing this letter must be the same authorized
officer as signs the Seller's Release. Applicable only if there is no
Warehouse Lender.

<PAGE>

                                                                     Exhibit G-1

                    [PURCHASER'S WIRE INSTRUCTIONS TO SELLER]

Wire Instructions:

      Bank Name:
      City, State:
      ABA#:
      Account #:
      A/C Name:

<PAGE>

                                                                     EXHIBIT G-2

                  [PURCHASER'S WIRE INSTRUCTIONS TO CUSTODIAN]

                                                                         Date:

Deutsche Bank National Trust Company
1761 St. Andrew Place
Santa Ana, CA 92705

      Re: Whole Loan Purchase Program

Ladies and Gentlemen:

      Set forth below are the Purchaser's Wire Instructions to Custodian (as
defined in all Conforming Custodial Agreements used in the above-referenced
program).

Wire Instructions:

      Bank Name:
      City, State:
      ABA #:
      Account #:
      Account Name:

<PAGE>

      Please acknowledge receipt of this letter in the space provided below and
return it to [Aspen Funding Corp./Gemini Securitization Corp., LLC/Newport
Funding Corp.] ("Purchaser"). This letter supersedes and replaces any prior
notice specifying the name of Purchaser and the Purchaser's Wire Instructions to
Custodian and shall remain in effect until superseded and replaced by a letter,
in the form of this letter, executed by us and acknowledged by you.

                                    Very truly yours,

                                    [ASPEN FUNDING CORP./GEMINI
                                    SECURITIZATION CORP., LLC/NEWPORT FUNDING
                                    CORP.]

                                    By: ___________________________________
                                    Name:
                                    Title:

                                    By: ___________________________________
                                    Name:
                                    Title:

Receipt acknowledged by:

Deutsche Bank National Trust Company,
as Custodian

DEUTSCHE BANK NATIONAL TRUST
      COMPANY

By: ____________________________
Name:
Title:

<PAGE>

                                                                     EXHIBIT G-3

                [PURCHASER'S DELIVERY INSTRUCTIONS TO CUSTODIAN]

Deutsche Bank National Trust Company
1761 St. Andrew Place
Santa Ana, CA 92705

Attention:

      Re: Delivery of Submission Package

Dear ______:

      Please deliver, via overnight courier, each of the Submission Packages
relating to the Mortgage Loans listed below to:

                                    Very truly yours,

                                    [ASPEN FUNDING CORP./GEMINI
                                    SECURITIZATION CORP., LLC/NEWPORT FUNDING
                                    CORP.]

                                    By: __________________________________
                                    Name:
                                    Title:

                                    By: __________________________________
                                    Name:
                                    Title:

      Initially capitalized terms are defined in the Custodial Agreement, dated
as of June [__], 2006 by and among Aspen Funding Corp., Gemini Securitization
Corp., LLC, Newport Funding Corp., American Home Mortgage Corp., American Home
Mortgage Investment Corp. and Deutsche Bank National Trust Company.

<PAGE>

                                    Very truly yours,

                                    [ASPEN FUNDING CORP./GEMINI
                                    SECURITIZATION CORP., LLC/NEWPORT FUNDING
                                    CORP.]

                                    By: ____________________________________
                                    Name:
                                    Title:

                                    By: ____________________________________
                                    Name:
                                    Title:

<PAGE>

                                                                       EXHIBIT H

            [NOTICE BY ASSIGNEE TO CUSTODIAN OF PURCHASER'S DEFAULT]

Deutsche Bank National Trust Company
1761 St. Andrew Place
Santa Ana, CA 92705

            Re: Whole Loan Purchase Program

Ladies and Gentlemen:

      Notice is hereby given that the related Purchaser has materially defaulted
in its obligations under an agreement between Assignee and such Purchaser
relating to the financing by Assignee of such Purchaser's purchase of Mortgage
Loans described on Schedule 1 hereto. Assignee hereby (i) directs that Custodian
act with respect to the related mortgage files solely in the capacity of
custodian for, and bailee of, Assignee, (ii) directs that Custodian hold such
mortgage files for the exclusive use and benefit of Assignee and (iii) assumes
the rights of the related Purchaser to furnish instructions to Custodian as to
the disposition of such mortgage files and such rights shall be exercisable
solely by Assignee.

      Please acknowledge the foregoing by signing below and returning a copy of
this notice to us at [address]

                                    Very truly yours,

                                    [ASSIGNEE]

                                    By: __________________________________
                                    Name:
                                    Title:

RECEIPT ACKNOWLEDGED:

Deutsche Bank National Trust Company,
as Custodian

By:
Name:
Title:

cc: [Aspen Funding Corp./Gemini Securitization Corp., LLC/Newport Funding
    Corp.]

<PAGE>

                                                                       EXHIBIT I

                            [NOTICE OF ASSIGNMENT]

To:         Deutsche Bank National Trust Company
            1761 East St. Andrew Place
            Santa Ana, CA 92705

From:       _________________________________________
Date:       _________________________________________

      You are hereby notified that as of [date] the undersigned has
[assigned/pledged] all of its right, title and interest in and to the Mortgage
Loans identified in the schedule attached hereto to [Assignee's name and
address]. You are hereby instructed to hold such Mortgage Loans pursuant to the
terms of the Custodial Agreement, dated as of June [__], 2006 (the "Custodial
Agreement"), by and among Aspen Funding Corp., Gemini Securitization Corp., LLC,
Newport Funding Corp. (each individually, a "Purchaser"), American Home Mortgage
Corp., American Home Mortgage Investment Corp. (each a "Seller"), Deutsche Bank
National Trust Company (the "Custodian"), for the sole and exclusive benefit of
[name of Assignee] subject to the terms of the Custodial Agreement by which
[name of Assignee] hereby agrees to be bound.

      When you have received written instructions from the related Purchaser
with the Assignee's consent thereon that the Mortgage Loans are no longer
[assigned/pledged] by the Purchaser to the Assigness, you shall change your
records to reflect the release of the [pledge/assignment] of the Mortgage Loans
and that you are holding the Mortgage Loans as custodian for, and for the
benefit of, the Purchaser.

                                    [ASPEN FUNDING CORP./GEMINI
                                    SECURITIZATION CORP., LLC/NEWPORT FUNDING
                                    CORP.]

                                    By: ________________________________________
                                    Name:
                                    Title:
                                    Date:

                                    By: ________________________________________
                                    Name:
                                    Title:
                                    Date:

<PAGE>

                                    [NAME OF ASSIGNEE]

                                    By: ________________________________________
                                    Name:
                                    Title:
                                    Date:

<PAGE>

                                                                       EXHIBIT J

                             [LETTERHEAD OF SELLER]

[DATE]

To: [____________]

Please deliver the Submission Package(s) as indicated on the attached list,
in accordance with the terms of the agreement, to the following:

      Company Name:
      Address:

      City, State, Zip:
      Attn:

<PAGE>

                             [LETTERHEAD OF SELLER]

[DATE]

 LOANS TO BE DELIVERED BY CUSTODIAN FOR [AMERICAN HOME MORTGAGE CORP./AMERICAN
                      HOME LOAN MORTGAGE INVESTMENT CORP.]

            Loan #:     Borrower's Name:  Loan Amount:
            -------     ----------------  ------------

1.

2.

3.

4.

5.

6.

7.

8.

9.

10.

<PAGE>

                                                                     EXHIBIT K-1

                               [TRADE ASSIGNMENT]

("Takeout Investor")
[Address]
Attention:

Ladies and Gentlemen:

            Attached hereto is a correct and complete copy of your confirmation
of commitment (the "Commitment"), trade-dated _, ____, to purchase $ of mortgage
loans (the "Mortgage Loans") at a purchase price of . This is to confirm that
(i) the Commitment is in full force and effect, (ii) the Commitment is hereby
assigned to [Aspen Funding Corp./Gemini Securitization Corp., LLC/Newport
Funding Corp.](["AFC"/ "GSC"/"NFC"]), (iii) you will accept delivery of such
Mortgage Loans directly from Purchase, (iv) you will pay [AFC/GSC/NFC] for such
Mortgage Loans, (v) upon["AFC"/ "GSC"/"NFC"]'s acceptance of this assignment,
[AFC/GSC/NFC] is obligated to make delivery of such Mortgage Loans to you in
accordance with the attached Commitment and (vi) upon [AFC/GSC/NFC] acceptance
of this assignment, you will release the related Seller from its obligation to
deliver the Mortgage Loans to you under the Commitment. Upon [AFC/GSC/NFC]
determination not to accept an assignment, [AFC/GSC/NFC] will notify you that
this assignment is rejected. Not later than 2:00 P.M. New York City time one
business day prior to your satisfaction of the Commitment, you shall fax a
purchase confirmation to [AFC/GSC/NFC] at (___) ___-____, Attention:
___________. Payment will be made to [AFC/GSC/NFC] in immediately available
funds.

                                                Very truly yours,

                                                [AMERICAN HOME MORTGAGE
                                                CORP./AMERICAN HOME MORTGAGE
                                                INVESTMENT CORP.]

                                                By: ____________________________
                                                Name: __________________________
                                                Title: _________________________

Agreed to, confirmed and accepted:

[TAKEOUT INVESTOR]

By: ____________________________
Name: __________________________
Title: _________________________

<PAGE>

                                                                     EXHIBIT K-2

                               [TRADE ASSIGNMENT]
                                    (Blanket)

_______("Takeout Investor")
[Address]
Attention:

Ladies and Gentlemen:

            This is to confirm that (i) your commitments ("Commitment"), made
from time to time, to purchase mortgage loans (the "Mortgage Loans") from the
related Seller may be assigned to [Aspen Funding Corp./Gemini Securitization
Corp., LLC/Newport Funding Corp.](["AFC"/ "GSC"/"NFC"]), (ii) you will accept
delivery of such Mortgage Loans directly from [AFC/GSC/NFC], (iii) you will pay
[AFC/GSC/NFC] for such Mortgage Loans, (iv) upon [AFC/GSC/NFC]'s acceptance of
this assignment with respect to any Commitment, [AFC/GSC/NFC] will be obligated
to make delivery of such Mortgage Loans to you in accordance with such
Commitment and (v) upon [AFC/GSC/NFC] acceptance of such assignment with respect
to any Commitment, you will release the related Seller from its obligation to
deliver the related Mortgage Loans to you under such Commitment but the related
Seller will not be released from any of its other obligations under the Loan
Purchase and Sale Agreement. Your agreement to the foregoing shall remain in
effect until terminated by your giving notice of such termination to the related
Seller in the form attached hereto as Exhibit 1. Upon [AFC/GSC/NFC]
determination not to accept an assignment, [AFC/GSC/NFC] will notify you that
this assignment is rejected with respect to the related Commitment. Not later
than 9:00 A.M. New York City time on the business day that you purchase the
Mortgage Loans, you shall fax a purchase list containing the information
required by the Mortgage Loan Settlement Summary to [AFC/GSC/NFC] at (___)
___-____, Attention: _________. You may also transmit such information
electronically by 10:00 A.M. on such business day. Payment will be made to
[AFC/GSC/NFC] in immediately available funds.

                                                Very truly yours,

                                                [AMERICAN HOME MORTGAGE
                                                CORP./ AMERICAN HOME MORTGAGE
                                                INVESTMENT CORP.]

                                                By: ____________________________
                                                Name: __________________________
                                                Title: _________________________

Agreed to, confirmed and accepted:
[TAKEOUT INVESTOR]

By: ____________________________
Name: __________________________ By:
Title: _________________________

<PAGE>

                                                        EXHIBIT 1 to EXHIBIT K-2

               [WITHDRAWAL OF CONSENT TO BLANKET TRADE ASSIGNMENT]

[American Home Mortgage Corp./American Home Mortgage Investment Corp.]
538 Broadhollow Road, Suite 155
Melville, New York 11747

Ladies and Gentlemen:

            The undersigned hereby terminates its agreement to the related
Seller's assignment of Commitments to [AFC/GSC/NFC], which approval was given
pursuant to the Trade Assignment dated _______ __, 200_. This termination shall
be effective as of but shall not affect the assignment of any Commitment which
assignment was made prior to the date hereof. Capitalized terms not defined
herein shall have the meanings set forth in the Trade Assignment.

                                                Very truly yours,

                                                [TAKEOUT INVESTOR]

                                                By: ____________________________
                                                Name: __________________________
                                                Title: _________________________

Copy to: [Aspen Funding Corp./Gemini Securitization Corp., LLC/Newport
Funding Corp.]

<PAGE>

                                                                       EXHIBIT L

                              OFFICER'S CERTIFICATE

                                       OF

                                     SELLERS

      The undersigned, [Vice] President of American Home Mortgage Corp.,
("AHMC") and the [Vice] President of American Home Mortgage Investment Corp.
(together, the "Sellers") hereby represent, warrant, covenant and certify, as of
the date of this certificate, to each of Aspen Funding Corp., Gemini
Securitization Corp., LLC and Newport Funding Corp. (collectively, the
"Purchasers") as follows:

      1. Each Mortgage Loan purchased under that certain Whole Loan Purchase and
Sale Agreement ("Purchase Agreement"), dated as of June 23, 2006, by and among
Purchasers, Sellers and American Home Mortgage Servicing, Inc. ("AMHSI") is
covered or will be covered as of the related Purchase Date by an ALTA lender's
title insurance policy or other generally acceptable form of policy of insurance
acceptable to Fannie Mae or Freddie Mac that:

            (A) is issued by a title insurer acceptable to Fannie Mae or Freddie
      Mac and qualified to do business in the jurisdiction where the Mortgaged
      Property is located,

            (B) insures the mortgagee, its successors and assigns, as to the
      first or second priority lien, as applicable, of the Mortgage in the
      original principal amount of the Mortgage Loan, and against any loss by
      reason of the invalidity or unenforceability of the lien resulting from
      the provisions of the Mortgage providing for adjustment in the Mortgage
      Interest Rate and Monthly Payment,

            (C) affirmatively insures ingress and egress, and against
      encroachments by or upon the Mortgaged Property or any interest therein,

            (D) does not contain any special exceptions (other than the standard
      exclusions) for zoning and uses and has been marked to delete the standard
      survey exception or to replace the standard survey exception with a
      specific survey reading,

            (E) sets forth the mortgagee and its successors and assigns as the
      sole insured thereof, and

            (F) is in full force and effect as of the date hereof.

      2. The Sellers are or will be in possession of an original policy of title
insurance (or a commitment for title insurance, if the policy is being held by
the title insurance company pending recordation of the Mortgage) or attorney's
opinion of title for each of the Mortgage Loans purchased under the Purchase
Agreement.

      Capitalized terms not defined herein have the meanings assigned to them in
the Purchase Agreement.

                           [signature page to follow]

<PAGE>

Each of the undersigned has executed this Certificate as of this 23rd day of
June, 2006.

                                    AMERICAN HOME MORTGAGE CORP.

                                    By: _____________________________
                                    Name:
                                    Title:

                                    AMERICAN HOME MORTGAGE INVESTMENT CORP.

                                    By: _____________________________
                                    Name:
                                    Title:

<PAGE>

                                                                       EXHIBIT M

                               REQUEST FOR RELEASE

Date:  __________, ____

AMERICAN HOME MORTGAGE SERVICING, INC. (the "Servicer") acting as bailee of, and
custodian for the exclusive benefit of [ASPEN FUNDING CORP./GEMINI
SECURITIZATION CORP., LLC/NEWPORT FUNDING CORP.] (the "Purchaser(s)")
(capitalized terms not otherwise defined herein are defined in that certain
Custodial Agreement, dated as of June __, 2006 (the "Custodial Agreement") by
and among the Purchasers, Deutsche Bank National Trust Company (the "Custodian")
and American Home Mortgage Corp., and American Home Mortgage Investment Corp.
(together, the "Sellers"), Servicer and Custodian, or if not defined in the
Custodial Agreement, then in that certain Whole Loan and Purchase and Sale
Agreement dated as of June __, 2006 by and among Servicer, Sellers, and
Purchasers (the "Purchase Agreement")), hereby acknowledges receipt of the
following described documentation for the identified Mortgage Loan, possession
of which is entrusted to the Servicer solely for the purpose referenced below.

      Mortgagor Name    Loan Number Note Amount             Mtg. Loan Document

Reason for Requesting File (check one)

_____  1.   Mortgage Loan Paid in Full.

_____  2.   Correction of Document Deficiencies.

_____  3.   Mortgage Required for Servicing.

_____  4.   Foreclosure.

_____  5.   Other [Describe].

If item 2, 3, 4 or 5 is checked, it is hereby acknowledged that the related
Purchaser maintains a 100% undivided ownership interest the Mortgage Loan
pursuant to the Purchase Agreement.

If item 2, 3, 4 or 5 is checked, in consideration of the aforesaid delivery by
the Custodian, the Servicer hereby agrees to hold said Mortgage Loan in trust
for the related Purchaser as provided under and in accordance with all
provisions of the Custodial Agreement and to return said Mortgage Loan to the
Custodian no later than the close of business on the tenth day following the
date hereof or, if such day is not a Business Day, on the immediately succeeding
Business Day.

Please deliver the requested file to [ADDRESS], Attention: _____________, via
overnight courier.

                           [signature page follows]

<PAGE>

AMERICAN HOME MORTGAGE SERVICING, INC.

By:___________________________

     Name:

     Title:

Acknowledged and Consented to:

[ASPEN FUNDING CORP./GEMINI SECURITIZATION CORP., LLC
NEWPORT FUNDING CORP.]

By:  _______________________________

     Name:

     Title:

Date:_______________________________

Documents returned to :

DEUTSCHE BANK NATIONAL TRUST COMPANY

By:  _______________________________

     Name:

     Title:

Date:_______________________________

<PAGE>

                                                                      SCHEDULE A

                               LIST OF CONDUITS

<PAGE>

                                                                      SCHEDULE B

                           LOAN IDENTIFICATION DATA

loan_no
alt_loan_no
svc_loan_no
originator
custodian
mortgagor_name
prop_addr
prop_addr2
prop_city
prop_state
prop_zip
prop_county
product
product_code
loan_type
note_type
note_date
orig_rate
orig_term
amort_term
orig_balance
first_pay_date
mature_date
pmi_coverage
pmi_insurer_code
margin
balloon_flag
adjustable
first_pymt_adj_freq
pymt_adj_freq
first_rate_chg_date
pymt_chg_date
first_rate_adj_freq
rate_adj_freq
first_rate_cap
period_rate_cap
min_int_rate
max_int_rate
io_flag

<PAGE>

io_term
prepay_flag
prepay_type
prepay_term
neg_amort_flag
neg_amort_limit
payment_type
period_pymt_cap
pi_constant
orig_pi_pymt
purpose_code
appraisal_value
purchase_price
silent_2nd
manuf_housing_flag
prop_type
units
occupied_flag
doc_type
fico_score
tape_ltv
tape_cltv
front_ratio
debt_ratio
jumbo_flag
self_employ_flag
highcost_flag
lien_position
other_lien_balance
fund_date
grade
channel_code
corresp_broker_code
corresp_broker
mers_flag
mers_id
net_margin
prop_value
net_rate
service_fee
ltv_ratio
loan_ltv
cltv_ratio
reo_flag
heloc_flag
orig_draw

<PAGE>

draw_term
orig_date
pledge_amt
arm_index
as_of_date
act_balance
curr_balance
paid_to_date
next_due_date
curr_note_rate
fpd_flag
pi_pymt
foreclosure
bankruptcy
rate_chg_date
commit_exp_date
inv_code
investor
takeout_amt
takeout_inv_code
takeout_inv_name
takeout_price
takeout_wire_amt
trust_receipt
wet_status
title_co
title_co_code
wire_amtExhibit 4.3

    Exhibit
      4.3

     

    

     

    CONMED
      CORPORATION

     

    2006
      STOCK INCENTIVE PLAN 

     

    ARTICLE
      I

     

    GENERAL

     

    1.1.     Purpose

     

    The
      purpose of Conmed Corporation 2006 Stock Incentive Plan is to attract, retain
      and motivate officers, directors, employees, consultants and others who may
      perform services for Conmed Corporation and its successors (the “Company”) and
      its subsidiaries and affiliates, to compensate them for their contributions
      to
      the long-term growth and profits of the Company, and to encourage them to
      acquire a proprietary interest in the success of the Company.

    

    1.2.     Definitions
      of Certain Terms

     

    1.2.1.     “Award”
      means an award made pursuant to the Plan.

     

    1.2.2.     “Award
      Agreement” means the written document by which each Award is
      evidenced.

     

    1.2.3.     “Board”
      means the Board of Directors of the Company.

     

    1.2.4.     “Certificate”
      means a stock certificate (or other appropriate document or evidence of
      ownership) representing shares of Common Stock.

     

    1.2.5.     “Code”
      means the Internal Revenue Code of 1986, as amended from time to time, and
      the
      applicable rulings and regulations thereunder.

     

    1.2.6.     “Committee”
      means the Compensation Committee of the Board of Directors, or such other
      committee of the Board as the Board may select from time to time to administer
      the Plan pursuant to Section 1.3.

     

    1.2.7.     “Common
      Stock” means common stock of the Company.

     

    1.2.8.     “Employment”
      means a grantee’s performance of services for the Company or its subsidiaries or
      affiliates, in any form whether as an employee, consultant or otherwise as
      determined by the Committee. The terms “employ” and “employed” shall have their
      correlative meanings.

     

    1.2.9.     “Exchange
      Act” means the Securities Exchange Act of 1934, as amended from time to time,
      and the applicable rules and regulations thereunder.

     

    1.2.10.     “Fair
      Market Value” means, with respect to a share of Common Stock on any day, the
      closing price of the Common Stock on the principal securities exchange on which
      the shares of Common Stock are then traded, or, if not traded, the price set
      by
      the Committee.

     

    1.2.11.     “Plan”
      means the Conmed Corporation 2006 Stock Incentive Plan, as described herein
      and
      as hereafter amended from time to time.

     

    1.3.     Administration

     

    1.3.1.     Subject
      to Section 1.3.4, the Plan shall be administered by the Committee. To the extent
      required for transactions under the Plan to qualify for the exemptions available
      under Rule 16b-3 promulgated 

     

    
      
        
        

      

      
        E-1

        
          

        

      

      
        
        

      

    

    under
      the
      Exchange Act, all actions relating to Awards to persons subject to Section
      16 of
      the Exchange Act may be taken by the Board or a committee or subcommittee of
      the
      Board composed of three (3) or more members, each of whom is a “non-employee
      director” within the meaning of Exchange Act Rule 16b-3. To the extent required
      for compensation realized from Awards under the Plan to be deductible by the
      Company pursuant to Section 162(m) of the Code, such Awards may be granted
      by a
      committee or subcommittee of the Board composed of three (3) or more members,
      each of whom is an “outside director” within the meaning of Code Section
      162(m).

     

    1.3.2.     The
      Committee shall have complete control over the administration of the Plan and
      shall have the authority in its sole discretion to (a) exercise all of the
      powers granted to it under the Plan, (b) construe, interpret and implement
      the
      Plan and all Award Agreements, (c) prescribe, amend and rescind rules and
      regulations relating to the Plan, including rules governing its own operations,
      (d) make all determinations necessary or advisable in administering the Plan,
      (e) correct any defect, supply any omission and reconcile any inconsistency
      in the Plan, (f) amend the Plan to reflect changes in applicable law, (g)
      grant Awards and determine who shall receive Awards, (h) amend any outstanding
      Award Agreement to accelerate the time or times at which the Award becomes
      vested, unrestricted or may be exercised, or to waive or amend any goals,
      restrictions or conditions set forth in such Award Agreement, or reflect a
      change in the grantee’s circumstances (e.g.,
      a
      change to part-time employment status), and (i) determine whether, to what
      extent and under what circumstances and method or methods (1) Awards may be
      (A)
      settled in cash, shares of Common Stock, other securities, other Awards or
      other
      property, (B) exercised or (C) canceled, forfeited or suspended (including,
      without limitation, canceling underwater options without any payment to the
      grantee), (2) shares of Common Stock, other securities, other Awards or other
      property and other amounts payable with respect to an Award may be deferred
      either automatically or at the election of the grantee thereof or of the
      Committee and (3) Awards may be settled by the Company, any of its
      subsidiaries or affiliates or any of its or their designees;
      provided, however, that, except in connection with a stock split, dividend,
      recapitalization, merger, consolidation, spinoff, combination or other exchange
      of shares affecting all holders of Common Stock, the Committee shall not be
      permitted to reprice (as defined under rules of any national exchange upon
      which
      the Company’s shares of Common Stock may be listed) options or stock
      appreciation rights without the consent of the Company's
      shareholders.

     

    1.3.3.     Actions
      of the Committee may be taken by the vote of a majority of its members present
      at a meeting (which may be held telephonically). Any action may be taken by
      a
      written instrument signed by a majority of the Committee members, and action
      so
      taken shall be fully as effective as if it had been taken by a vote at a
      meeting. The determination of the Committee on all matters relating to the
      Plan
      or any Award Agreement shall be final, binding and conclusive. The Committee
      may
      allocate among its members and delegate to any person who is not a member of
      the
      Committee any of its administrative responsibilities.

     

    1.3.4.     Notwithstanding
      anything to the contrary contained herein, the Board may, in its sole
      discretion, at any time and from time to time, grant Awards or administer the
      Plan. The Board shall have all of the authority and responsibility granted
      to
      the Committee herein. 

     

    1.3.5.     No
      Liability

     

    No
      member
      of the Board or the Committee or any employee of the Company or its subsidiaries
      or affiliates (each such person, a “Covered Person”) shall have any liability to
      any person (including any grantee) for any action taken or omitted to be taken
      or any determination made in good faith with respect to the Plan or any Award.
      Each Covered Person shall be indemnified and held harmless by the Company
      against and from (a) any loss, cost, liability or expense (including attorneys’
fees) that may be imposed upon or incurred by such Covered Person in connection
      with or resulting from any action, suit or proceeding to which such Covered
      Person may be a party or in which such Covered Person may be involved by reason
      of any action taken or omitted to be taken under the Plan or any Award Agreement
      and (b) any and all amounts paid by such Covered Person, with the Company’s
      approval, in settlement thereof, or paid by such Covered Person in satisfaction
      of any judgment in 

     

    
      
        
        

      

      
        E-2

        
          

        

      

      
        
        

      

    

    any
      such
      action, suit or proceeding against such Covered Person, provided
      that the
      Company shall have the right, at its own expense, to assume and defend any
      such
      action, suit or proceeding and, once the Company gives notice of its intent
      to
      assume the defense, the Company shall have sole control over such defense with
      counsel of the Company’s choice. The foregoing right of indemnification shall
      not be available to a Covered Person to the extent that a court of competent
      jurisdiction in a final judgment or other final adjudication, in either case
      not
      subject to further appeal, determines that the acts or omissions of such Covered
      Person giving rise to the indemnification claim resulted from such Covered
      Person’s bad faith, fraud or willful criminal act or omission. The foregoing
      right of indemnification shall not be exclusive of any other rights of
      indemnification to which Covered Persons may be entitled under the Company’s
      Certificate of Incorporation or Bylaws, as a matter of law, or otherwise, or
      any
      other power that the Company may have to indemnify such persons or hold them
      harmless.

    

    1.4.     Persons
      Eligible for Awards

     

    Awards
      under the Plan may be made to such officers, directors, employees, consultants
      and other individuals who may perform services for the Company and its
      subsidiaries and affiliates, as the Committee may select. 

    

    1.5.     Types
      of Awards Under Plan

     

    Awards
      may be made under the Plan in the form of (a) options, (b) stock
      appreciation rights, (c) dividend equivalent rights, (d) restricted stock,
      (e)
      restricted stock units and (f) other equity-based or equity-related Awards
      which the Committee determines to be consistent with the purpose of the Plan
      and
      the interests of the Company.

    

    1.6.     Shares
      Available for Awards

     

    1.6.1.     Total
      shares available.
      Subject
      to adjustment pursuant to Section 1.6.2, the total number of shares of Common
      Stock which may be delivered pursuant to Awards granted under the Plan shall
      not
      exceed the sum of 1,000,000 shares that will be available for grants and awards
      under the Plan. If any Award is forfeited or otherwise terminates or is canceled
      without the delivery of shares of Common Stock or shares of Common Stock are
      surrendered or withheld from any Award to satisfy a grantee’s income tax or
      other withholding obligations, then the shares covered by such forfeited,
      terminated or canceled Award or which are equal to the number of shares
      surrendered or withheld shall again become available to be delivered pursuant
      to
      Awards granted or to be granted under this Plan. Notwithstanding the foregoing,
      but subject to adjustment pursuant to Section 1.6.2, no more than 1,000,000
      shares of Common Stock shall be delivered pursuant to the exercise of incentive
      stock options. The maximum number of shares of Common Stock with respect to
      which options and stock appreciation rights may be granted to an individual
      grantee in any calendar year is 200,000 shares of Common Stock, subject to
      adjustment pursuant to Section 1.6.2. The maximum number of shares of Common
      Stock with respect to which restricted stock, restricted stock units or
      performance shares that are intended to qualify as performance-based
      compensation under Section 162(m) of the Code may be granted to an individual
      grantee in any calendar year is 200,000 shares of Common Stock, subject to
      adjustment pursuant to Section 1.6.2. Any shares of Common Stock (a) delivered
      by the Company, (b) with respect to which Awards are made by the Company and
      (c)
      with respect to which the Company becomes obligated to make Awards, in each
      case
      through the assumption of, or in substitution for, outstanding awards previously
      granted by an acquired entity, shall not be counted against the shares of Common
      Stock available for Awards under this Plan. Shares of Common Stock which may
      be
      delivered pursuant to Awards may be authorized but unissued Common Stock or
      authorized and issued Common Stock held in the Company’s treasury or otherwise
      acquired for the purposes of the Plan. 

     

    1.6.2.     Adjustments.
      The
      Committee shall have the authority (but not the obligation) to adjust the number
      of shares of Common Stock authorized pursuant to Section 1.6.1 and to adjust
      (including, without limitation, by payment of cash) the terms of any outstanding
      Awards (including, without 

     

    
      
        
        

      

      
        E-3

        
          

        

      

      
        
        

      

    

    limitation,
      the number of shares of Common Stock covered by each outstanding Award, the
      type
      of property to which the Award relates and the exercise or strike price of
      any
      Award), in such manner as it deems appropriate to prevent the enlargement or
      dilution of rights, or otherwise deems it appropriate, for any increase or
      decrease in the number of issued shares of Common Stock (or issuance of shares
      of stock other than shares of Common Stock) resulting from a recapitalization,
      stock split, reverse stock split, stock dividend, spinoff, splitup, combination
      or reclassification or exchange of the shares of Common Stock, merger,
      consolidation, rights offering, separation, reorganization or any other change
      in corporate structure or event the Committee determines in its sole discretion
      affects the capitalization of the Company, including any extraordinary dividend
      or distribution. After any adjustment made pursuant to this Section 1.6.2,
      the
      number of shares of Common Stock subject to each outstanding Award shall be
      rounded up or down to the nearest whole number, as determined by the
      Committee.

     

    1.6.3.     Except
      as
      provided in this Section 1.6 or under the terms of any applicable Award
      Agreement, there shall be no limit on the number or the value of shares of
      Common Stock that may be subject to Awards to any individual under the
      Plan.

     

    1.6.4.     There
      shall be no limit on the amount of cash, securities (other than shares of Common
      Stock as provided in Section 1.6.1, as adjusted by 1.6.2) or other property
      that
      may be delivered pursuant to any Award. 

     

    ARTICLE
      II

     

    AWARDS
      UNDER THE PLAN

     

    2.1.     Agreements
      Evidencing Awards

     

    Each
      Award granted under the Plan shall be evidenced by an Award Agreement which
      shall contain such provisions and conditions as the Committee deems appropriate.
      The Committee may grant Awards in tandem with or in substitution for any other
      Award or Awards granted under this Plan or any award granted under any other
      plan of the Company. By accepting an Award pursuant to the Plan, a grantee
      thereby agrees that the Award shall be subject to all of the terms and
      provisions of the Plan and the applicable Award Agreement.

    

    2.2.     No
      Rights as a Shareholder

     

    No
      grantee of an Award (or other person having rights pursuant to an Award) shall
      have any of the rights of a shareholder of the Company with respect to shares
      of
      Common Stock subject to an Award until the delivery of such shares. Except
      as
      otherwise provided in Section 1.6.2, no adjustments shall be made for dividends
      or distributions (whether ordinary or extraordinary, and whether in cash, Common
      Stock, other securities or other property) on, or other events relating to,
      shares of Common Stock subject to an Award for which the record date is prior
      to
      the date such shares are delivered.

    

    2.3.     Grant
      of Options and Stock Appreciation Rights

     

    The
      Committee may grant (a) options to purchase shares of Common Stock from the
      Company and (b) stock appreciation rights, in such amounts and subject to such
      terms and conditions as the Committee may determine.

    

    2.4.     Exercise
      of Options and Stock Appreciation Rights

     

    2.4.1.     Any
      acceptance by the Committee of an optionee’s written notice of exercise of an
      option shall be conditioned upon payment for the shares being purchased. Such
      payment may be made in cash or by such other method as the Committee may from
      time to time prescribe.

     

    
      
        
        

      

      
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    2.4.2.     After
      receiving payment from the optionee of the full option exercise price, or after
      receiving notice from the grantee of the exercise of a stock appreciation right
      for which payment will be made by the Company partly or entirely in shares
      of
      Common Stock, the Company shall, subject to the provisions of the Plan or any
      Award Agreement, deliver the shares of Common Stock.

     

    2.5.     Grant
      of Restricted Stock

     

    The
      Committee may grant or offer for sale restricted shares of Common Stock in
      such
      amounts and subject to such terms and conditions as the Committee shall
      determine. Upon the delivery of such shares, the grantee shall have the rights
      of a shareholder with respect to the restricted stock, subject to any
      restrictions and conditions as the Committee may include in the applicable
      Award
      Agreement. In the event that a Certificate is issued in respect of restricted
      shares of Common Stock, such Certificate may be registered in the name of the
      grantee but shall be held by the Company or its designated agent until the
      time
      the restrictions lapse.

    

    2.6.     Grant
      of Restricted Stock Units

     

    The
      Committee may grant Awards of restricted stock units in such amounts and subject
      to such terms and conditions as the Committee shall determine. A grantee of
      a
      restricted stock unit will have only the rights of a general unsecured creditor
      of the Company until delivery of shares of Common Stock, cash or other
      securities or property is made as specified in the applicable Award Agreement.
      On the delivery date, the grantee of each restricted stock unit not previously
      forfeited shall receive one share of Common Stock, or cash, securities or other
      property equal in value to a share of Common Stock or a combination thereof,
      as
      specified by the Committee.

    

    2.7.     Other
      Stock-Based Awards

     

    The
      Committee may grant other types of equity-based or equity-related Awards
      (including the grant or offer for sale of unrestricted shares of Common Stock
      and performance shares) in such amounts and subject to such terms and
      conditions, as the Committee shall determine. Such Awards may entail the
      transfer of actual shares of Common Stock to Plan participants, or payment
      in
      cash or otherwise of amounts based on the value of shares of Common
      Stock.

    

    2.8.     Grant
      of Dividend Equivalent Rights

     

    The
      Committee may include in the Award Agreement with respect to any Award a
      dividend equivalent right entitling the grantee to receive amounts equal to
      all
      or any portion of the dividends that would be paid on the shares of Common
      Stock
      covered by such Award if such shares had been delivered pursuant to such Award.
      The grantee of a dividend equivalent right will have only the rights of a
      general unsecured creditor of the Company until payment of such amounts is
      made
      as specified in the applicable Award Agreement. In the event such a provision
      is
      included in an Award Agreement, the Committee shall determine whether such
      payments shall be made in cash, in shares of Common Stock or in another form,
      whether they shall be conditioned upon the exercise of the Award to which they
      relate, the time or times at which they shall be made, and such other terms
      and
      conditions as the Committee shall deem appropriate.

    

    2.9.     Performance
      Goals

     

    The
      Committee may establish performance goals with respect to any Award using one
      or
      more of the following goals: (a) market share (including, without limitation,
      the market share of trading volume in certain types of securities), (b)
      earnings, (c) earnings per share, (d) operating profit, (e) operating margin,
      (f) return on equity, (g) return on assets, (h) total return to stockholders,
      (i) technology improvements, (j) return on investment capital, (k) revenue
      growth, (l) cash flow, (m) reliability, (n) revenue growth, (o) quality
      objectives and (p) such other objectives or performance measures as the
      Committee may select. In addition, Awards may be subject to comparisons of
      the

     

    
      
        
        

      

      
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     performance
      of other companies, such performance to be measured by one or more of the
      foregoing business criteria.

     

    ARTICLE
      III

     

    MISCELLANEOUS

     

    3.1.     Amendment
      of the Plan

     

    The
      Board
      may from time to time suspend, discontinue, revise or amend the Plan in any
      respect whatsoever, and may also suspend the ability of a recipient of an Award
      to exercise or otherwise realize the value of such Award, provided,
      however,
      that,
      except with respect to the foregoing, no amendment shall materially adversely
      affect a grantee without such person’s prior written consent. 

    

    3.2.     Tax
      Withholding

     

    3.2.1.     As
      a
      condition to the delivery of any shares of Common Stock, other property or
      cash
      pursuant to any Award or the lifting or lapse of restrictions on any Award,
      or
      in connection with any other event that gives rise to a federal or other
      governmental tax withholding obligation on the part of the Company or any of
      its
      subsidiaries or affiliates relating to an Award (including, without limitation,
      FICA tax), (a) the Company may deduct or withhold (or cause to be deducted
      or
      withheld) from any payment or distribution to a grantee whether or not pursuant
      to the Plan or (b) the Committee shall be entitled to require that the grantee
      remit cash to the Company or any of its subsidiaries or affiliates (through
      payroll deduction or otherwise), or (c) the Company or any its of subsidiaries
      or affiliates may enter into any other suitable arrangements to withhold in
      each
      case in an amount sufficient in the opinion of the Company to satisfy such
      withholding obligation.

     

    3.2.2.     If
      the
      event giving rise to the withholding obligation involves a transfer of shares
      of
      Common Stock, then, unless the applicable Award Agreement provides otherwise,
      at
      the discretion of the Committee, the grantee may satisfy the withholding
      obligation described under Section 3.2.1 by electing to have the Company
      withhold shares of Common Stock (which withholding will be at a rate not in
      excess of the statutory minimum rate) or by tendering previously owned shares
      of
      Common Stock, in each case having a Fair Market Value equal to the amount of
      tax
      to be withheld (or by any other mechanism as may be required or appropriate
      to
      conform with local tax and other rules). For this purpose, Fair Market Value
      shall be determined as of the date on which the amount of tax to be withheld
      is
      determined (and the Company may cause any fractional share amount to be settled
      in cash).

     

    3.3.     Required
      Consents and Legends

     

    3.3.1.     If
      the
      Committee shall at any time determine that any consent (as hereinafter defined)
      is necessary or desirable as a condition of, or in connection with, the granting
      of any Award, the delivery of shares of Common Stock or the delivery of any
      cash, securities or other property under the Plan, or the taking of any other
      action thereunder (each such action being hereinafter referred to as a “plan
      action”), then such plan action shall not be taken, in whole or in part, unless
      and until such consent shall have been effected or obtained to the full
      satisfaction of the Committee. The Committee may direct that any Certificate
      evidencing shares delivered pursuant to the Plan shall bear a legend setting
      forth such restrictions on transferability as the Committee may determine to
      be
      necessary or desirable, and may advise the transfer agent to place a stop order
      against any legended shares.

     

    3.3.2.     The
      term
“consent” as used herein with respect to any plan action includes (a) any and
      all listings, registrations or qualifications in respect thereof upon any
      securities exchange or under any federal, state, or local law, or law, rule
      or
      regulation of a jurisdiction outside the United States, (b) any and all
      written agreements and representations by the grantee with respect to the
      disposition of shares, or with respect to any other matter, which the Committee
      may deem necessary or desirable to comply with the terms of any such listing,
      registration or qualification or to obtain an exemption from the

     

    
      
        
        

      

      
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     requirement
      that any such listing, qualification or registration be made, (c) any and all
      other consents, clearances and approvals in respect of a plan action by any
      governmental or other regulatory body or any stock exchange or self-regulatory
      agency, (d) any and all consents by the grantee to (i) the Company’s supplying
      to any third party recordkeeper of the Plan such personal information as the
      Committee deems advisable to administer the Plan, (ii) the Company, or its
      applicable subsidiary or affiliate, deducting amounts from the grantee’s wages,
      or another arrangement satisfactory to the Committee, to reimburse the Company,
      or its applicable subsidiary or affiliate, for advances made on the grantee’s
      behalf to satisfy certain withholding and other tax obligations in connection
      with an Award and (iii) the Company imposing sales and transfer procedures
      and
      restrictions and hedging restrictions on shares of Common Stock delivered under
      the Plan and (e) any and all consents or authorizations required to comply
      with, or required to be obtained under, applicable local law or otherwise
      required by the Committee. Nothing herein shall require the Company to list,
      register or qualify the shares of Common Stock on any securities
      exchange.

     

    3.4.     Right
      of Offset

     

    The
      Company and its subsidiaries and affiliates shall have the right to offset
      against its obligation to deliver shares of Common Stock (or other property
      or
      cash) under the Plan or any Award Agreement any outstanding amounts (including,
      without limitation, travel and entertainment or advance account balances, loans,
      repayment obligations under any Awards, or amounts repayable to the Company
      or
      its subsidiaries or affiliates pursuant to tax equalization, housing, automobile
      or other employee programs) the grantee then owes to the Company or its
      subsidiaries or affiliates and any amounts the Committee otherwise deems
      appropriate pursuant to any tax equalization policy or agreement.

    

    3.5.     Nonassignability

     

    Except
      to
      the extent otherwise expressly provided in the applicable Award Agreement,
      no
      Award (or any rights and obligations thereunder) granted to any person under
      the
      Plan may be sold, exchanged, transferred, assigned, pledged, hypothecated,
      fractionalized, hedged or otherwise disposed of (including through the use
      of
      any cash-settled instrument), whether voluntarily or involuntarily, other than
      by will or by the laws of descent and distribution, and all such Awards (and
      any
      rights thereunder) shall be exercisable during the life of the grantee only
      by
      the grantee or the grantee’s legal representative. Notwithstanding the preceding
      sentence, the Committee may permit, under such terms and conditions that it
      deems appropriate in its sole discretion, a grantee to transfer any Award to
      any
      person or entity that the Committee so determines. Any sale, transfer,
      assignment, pledge, hypothecation, fractionalization, hedge or other disposition
      in violation of the provisions of this Section 3.5 shall be void. All of the
      terms and conditions of this Plan and the Award Agreements shall be binding
      upon
      any such permitted successors and assigns.

    

    3.6.     Requirement
      of Consent and Notification of Election Under Section 83(b) of the Code or
      Similar Provision

     

    No
      election under Section 83(b) of the Code (to include in gross income in the
      year
      of transfer the amounts specified in Code Section 83(b)) or under a similar
      provision of the law of a jurisdiction outside the United States may be made
      unless expressly permitted by the terms of the Award Agreement or by action
      of
      the Committee in writing prior to the making of such election. If a grantee
      of
      an Award, in connection with the acquisition of shares of Common Stock under
      the
      Plan or otherwise, is expressly permitted under the terms of the Award Agreement
      or by such Committee action to make any such election and the grantee makes
      the
      election, the grantee shall notify the Committee of such election within ten
      (10) days of filing notice of the election with the Internal Revenue Service
      or
      other governmental authority, in addition to any filing and notification
      required pursuant to regulations issued under Code Section 83(b) or other
      applicable provision.

    

    3.7.     Requirement
      of Notification Upon Disqualifying Disposition Under Section 421(b) of
      the
      Code

     

    
      
        
        

      

      
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    If
      any
      grantee shall make any disposition of shares of Common Stock delivered pursuant
      to the exercise of an incentive stock option under the circumstances described
      in Section 421(b) of the Code (relating to certain disqualifying dispositions),
      such grantee shall notify the Company of such disposition within ten (10) days
      thereof.

    

    3.8.     Change
      in Control

     

    3.8.1.  In
      the
      event of a Change in Control, as hereinafter defined, (i) each option and stock
      appreciation right shall be deemed fully vested and exercisable, (ii) the
      restrictions applicable to all restricted shares of Common Stock and restricted
      stock units shall lapse and such shares and share units shall be deemed fully
      vested, (iii) all performance conditions shall be deemed satisfied in full,
      and
      (iv) all restricted stock units and performance stock units shall be paid in
      cash if so specified by the Committee. The amount of any cash payment in respect
      of a restricted stock unit or performance stock unit may be equal to: (A) in
      the
      event the Change in Control is the result of a tender offer or exchange offer
      for Common Stock, the final offer price per share paid for the Common Stock
      or
      (B) in the event the Change in Control is the result of any other occurrence,
      the aggregate per share value of Common Stock as determined by the Committee
      at
      such time. The Committee may, in its discretion, include such further provisions
      and limitations in any agreement documenting such Awards as it may deem
      equitable and in the best interests of the Company.

     

    3.8.2  A
      "Change
      in Control" shall mean the occurrence of any one of the following events: (i)
      any "person" (as such term is defined in Section 3(A)(9) of the Exchange Act
      and
      as used in Sections 13(d)(3) and 14(d)(2) of the Exchange Act) is or becomes
      a
      "beneficial owner" (as defined in Rule 13d-3 under the Exchange Act), directly
      or indirectly, of securities of the Company representing 25% or more of the
      combined voting power of the Company's then outstanding securities eligible
      to
      vote for the election of the Board (the "Company Voting Securities");
provided,
      however,
      that the
      event described in this clause (i) shall not be deemed to be a Change in Control
      by virtue of any of the following acquisitions: (A) by the Company or any of
      its
      subsidiaries, (B) by any employee benefit plan sponsored or maintained by the
      Company or any of its subsidiaries, (C) by any underwriter temporarily holding
      securities pursuant to an offering of such securities, or (D) pursuant to a
      Non-Control Transaction (as defined in clause (iii) below); (ii) during any
      period of not more than two years, individuals who constitute the Board as
      of
      the beginning of the period (the "Incumbent Directors") cease for any reason
      to
      constitute at least a majority of the Board, provided
      that any
      person becoming a director subsequent to the beginning of the period, whose
      election or nomination for election was approved by a vote (either by specific
      vote or by approval of the proxy statement of the Company in which such person
      is named as a nominee for director, without objection to such nomination) of
      at
      least three-quarters of the Incumbent Directors who remain on the Board,
      including those directors whose election or nomination for election was
      previously so approved, shall also be deemed to be an Incumbent Director;
provided;
      however,
      that no
      individual initially elected or nominated as a director of the Company as a
      result of an actual or threatened election contest with respect to directors
      or
      any other actual or threatened solicitation of proxies or consents by or on
      behalf of any person other than the Board shall be deemed to be an Incumbent
      Director; (iii) the consummation of a merger, consolidation, share exchange
      or
      similar form of corporate reorganization of the Company (or any such type of
      transaction involving the Company or any of its subsidiaries that requires
      the
      approval of the Company's shareholders, whether for the transaction or the
      issuance of securities in the transaction or otherwise) (a "Business
      Combination"), unless immediately following such Business Combination: (a)
      more
      than 60% of the total voting power of the corporation resulting from such
      Business Combination (including, without limitation, any corporation which
      directly or indirectly has beneficial ownership of 100% of the Company Voting
      Securities) eligible to elect directors of such corporation is represented
      by
      shares that were Company Voting Securities immediately prior to such Business
      Combination (either by remaining outstanding or being converted), and such
      voting power is in substantially the same proportion as the voting powers of
      such Company Voting Securities immediately prior to the Business Combination,
      (b) no person (other than any holding company resulting from such Business
      Combination, any employee benefit plan sponsored or maintained by the Company
      (or the corporation resulting from such business Combination)) immediately
      following the consummation of the Business Combination becomes the 

     

    
      
        
        

      

      
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    beneficial
      owner, directly or indirectly, of 25% or more of the total voting power of
      the
      outstanding voting securities eligible to elect directors of the corporation
      resulting from such Business Combination, and (c) at least a majority of the
      members of the board of directors of the corporation resulting from such
      Business Combination were Incumbent Directors at the time of the approval of
      the
      execution of the initial agreement providing for such Business Combination
      (any
      Business Combination which satisfies the conditions in clauses (a), (b) and
      (c)
      is referred to hereunder as a "Non-Control Transaction"); or (iv) the
      shareholders of the Company approve a plan of complete liquidation or
      dissolution of the Company or the sale of all or substantially all of its
      assets. Notwithstanding the foregoing, a Change in Control shall not be deemed
      to occur solely because any person acquires beneficial ownership of more than
      25% of the Company Voting Securities as a result of the acquisition of Company
      Voting Securities by the Company which reduces the number of Company Voting
      Securities outstanding; provided,
      that
      if after
      such acquisition by the Company such person becomes the beneficial owner of
      additional Company Voting Securities that increases the percentage of
      outstanding Company Voting Securities beneficially owned by such person, a
      Change in Control of the Company shall then occur.

     

    3.9.     Right
      of Discharge Reserved

     

    Neither
      the grant of an Award nor any provision in the Plan or in any Award Agreement
      shall confer upon any grantee the right to continued Employment by the Company
      or any of its affiliates or subsidiaries or affect any right that the Company
      or
      its subsidiaries or affiliates may have to terminate or alter the terms and
      conditions of the grantee’s Employment.

    

    3.10.    Nature
      of Payments

     

    3.10.1.     Any
      and
      all grants of Awards and deliveries of shares of Common Stock, cash, securities
      or other property under the Plan shall be in consideration of services performed
      or to be performed for the Company or its subsidiaries or affiliates by the
      grantee. Awards under the Plan may, in the sole discretion of the Committee,
      be
      made in substitution in whole or in part for cash or other compensation
      otherwise payable to an Employee. Deliveries of shares of Common Stock may
      be
      rounded to avoid fractional shares. In addition, the Company may pay cash in
      lieu of fractional shares.

     

    3.10.2.     All
      grants of Awards and deliveries of shares of Common Stock, cash or other
      property under the Plan shall constitute a special discretionary incentive
      payment to the grantee and shall not be required to be taken into account in
      computing the amount of salary or compensation of the grantee for the purpose
      of
      determining any contributions to or any benefits under any pension, retirement,
      profit-sharing, bonus, life insurance, severance or other benefit plan of the
      Company or its subsidiaries or affiliates or under any agreement with the
      grantee, unless the Company or its subsidiaries or affiliates specifically
      provides otherwise.

     

    3.11.     Non-Uniform
      Determinations

     

    None
      of
      the Committee’s determinations under the Plan and Award Agreements need to be
      uniform, and any such determination may be made by it selectively among persons
      who receive, or are eligible to receive, Awards under the Plan (whether or
      not
      such persons are similarly situated). Without limiting the generality of the
      foregoing, the Committee shall be entitled, among other things, to make
      non-uniform and selective determinations under Award Agreements, and to enter
      into non-uniform and selective Award Agreements, as to (a) the persons to
      receive Awards, (b) the terms and provisions of Awards, (c) whether a grantee’s
      Employment has been terminated for purposes of the Plan and (d) any adjustments
      to be made to Award pursuant to Section 1.6.2 or otherwise.

     

    
      
        
        

      

      
        E-9

        
          

        

      

      
        
        

      

    

     

     

    3.12.     Other
      Payments or Awards

     

    Nothing
      contained in the Plan shall be deemed in any way to limit or restrict the
      Company or its subsidiaries or affiliates from making any award or payment
      to
      any person under any other plan, arrangement or understanding, whether now
      existing or hereafter in effect.

    

    3.13.     Plan
      Headings

     

    The
      headings in this Plan are for the purpose of convenience only and are not
      intended to define or limit the construction of the provisions
      hereof.

    

    3.14.    References
      to Laws, Rules or Regulations

     

    Any
      reference in this Plan to any law, rule or regulation shall be deemed to include
      any amendments, revisions or successor provisions to such law, rule or
      regulation.

    

    3.15.     Adoption
      Date, Effective Date, and Term of Plan

     

    The
      Plan
      was adopted on February 17, 2006. The Plan shall become effective upon
      shareholder approval of the Plan. Unless sooner terminated by the Board, the
      provisions of the Plan which address the grant of incentive stock options shall
      terminate on the day before the tenth anniversary of the date the Plan was
      adopted, and no incentive stock options shall thereafter be granted under the
      Plan. Unless sooner terminated by the Board, the provisions of Section 1.6.1
      which provide that shares of Common Stock that are withheld from Awards of
      restricted stock upon vesting to satisfy a grantee’s income tax or other
      withholding obligations shall be added back to the total shares that may be
      delivered pursuant to Awards granted under the Plan shall terminate on the
      day
      before the tenth anniversary of the date the Plan was approved by shareholders.
      The Board reserves the right to terminate the Plan at any time; provided,
      however,
      that
      all Awards made under the Plan prior to its termination shall remain in effect
      until such Awards have been satisfied or terminated in accordance with the
      terms
      and provisions of the Plan and the applicable Award Agreements. 

    

    3.16.     Governing
      Law

     

    ALL
      RIGHTS AND OBLIGATIONS UNDER THE PLAN AND EACH AWARD AGREEMENT SHALL BE GOVERNED
      BY AND CONSTRUED IN ACCORDANCE WITH THE LAWS OF THE STATE OF NEW YORK, WITHOUT
      REGARD TO PRINCIPLES OF CONFLICT OF LAWS.

    

    3.17.    Arbitration

     

    Any
      dispute, controversy or claim between the Company and any participant arising
      out of or relating to or concerning the provisions of the Plan shall be finally
      settled by arbitration in New York, New York before, and in accordance with,
      the
      rules then obtaining of the American Arbitration Association (the “AAA”) in
      accordance with the commercial arbitration rules of the AAA, provided that
      the
      sole persons who may be selected to serve as arbitrators shall be partners
      of
      nationally recognized law firms with experience in securities laws issues
      generally and equity compensation plans in particular. Prior to arbitration,
      all
      disputes, controversies or claims maintained by any participant must first
      be
      submitted to the Committee in accordance with claim procedures determined by
      the
      Committee in its sole discretion.

     

    3.18.     Severability;
      Entire Agreement

     

    If
      any of
      the provisions of this Plan or any Award Agreement is finally held to be
      invalid, illegal or unenforceable (whether in whole or in part), such provision
      shall be deemed modified to the extent, but only to the extent, of such
      invalidity, illegality or unenforceability and the remaining provisions shall
      not be affected thereby; provided
      that, if
      any of such provisions is finally held to be invalid, illegal, or unenforceable
      because it exceeds the maximum scope determined to be acceptable to

     

    
      
        
        

      

      
        E-10

        
          

        

      

      
        
        

      

    

     

    permit
      such provision to be enforceable, such provision shall be deemed to be modified
      to the minimum extent necessary to modify such scope in order to make such
      provision enforceable hereunder. The Plan and any Award Agreements contain
      the
      entire agreement of the parties with respect to the subject matter thereof
      and
      supersede all prior agreements, promises, covenants, arrangements,
      communications, representations and warranties between them, whether written
      or
      oral with respect to the subject matter thereof.

    

    3.19.     No
      Third Party Beneficiaries

     

    Except
      as
      expressly provided in an Award Agreement, neither the Plan nor any Award
      Agreement shall confer on any person other than the Company and the grantee
      of
      the Award any rights or remedies thereunder; provided
      that the
      exculpation and indemnification provisions of Section 1.3.5 shall inure to
      the benefit of a Covered Person’s estate, beneficiaries and
      legatees.

    

    3.20.     Successors
      and Assigns of the Company

     

    The
      terms
      of this Plan shall be binding upon and inure to the benefit of the Company
      and
      its successors and assigns.

     

     

    E-11

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