EXHIBIT 1.1
▇▇▇▇▇▇▇ ▇▇▇▇▇ MORTGAGE INVESTORS, INC.,
COMMERCIAL MORTGAGE PASS-THROUGH CERTIFICATES,
SERIES 2006-C1
UNDERWRITING AGREEMENT
May 16, 2006
▇▇▇▇▇▇▇ Lynch, Pierce, ▇▇▇▇▇▇ & ▇▇▇▇▇ Incorporated
As Representative of the several
Underwriters listed on Schedule I hereto
c/o Merrill Lynch, Pierce, ▇▇▇▇▇▇ & ▇▇▇▇▇ Incorporated
4 World Financial Center
▇▇▇ ▇▇▇▇▇ ▇▇▇▇▇▇, ▇▇▇▇ ▇▇▇▇▇
▇▇▇ ▇▇▇▇, ▇▇▇ ▇▇▇▇ ▇▇▇▇▇
Ladies and Gentlemen:
▇▇▇▇▇▇▇ ▇▇▇▇▇ Mortgage Investors, Inc., a Delaware corporation (the
"Depositor"), proposes to cause the issuance of, and to sell to the several
Underwriters listed on Schedule I (together, the "Underwriters"), for whom
▇▇▇▇▇▇▇ Lynch, Pierce, ▇▇▇▇▇▇ & ▇▇▇▇▇ Incorporated is acting as representative
(in such capacity, the "Representative"), the Commercial Mortgage Pass-Through
Certificates identified in Schedule I hereto (the "Certificates") pursuant to
this Underwriting Agreement, dated May 16, 2006 (this "Agreement"), between the
Depositor and the Underwriters. ▇▇▇▇▇▇▇ Lynch, Pierce, ▇▇▇▇▇▇ & ▇▇▇▇▇
Incorporated is acting as sole bookrunning manager with respect to the offering
of the Offered Certificates (in such capacity, the "Lead Underwriter"). ▇▇▇▇▇▇▇
Lynch, Pierce, ▇▇▇▇▇▇ & ▇▇▇▇▇ Incorporated and LaSalle Financial Services, Inc.
will act as co-lead managers. PNC Capital Markets LLC, ▇▇▇▇▇▇▇ Sachs & Co. and
▇▇▇▇▇▇ ▇▇▇▇▇▇▇ & Co. Incorporated will act as co-managers. The Certificates will
evidence beneficial ownership interests in a trust fund (the "Trust Fund") to be
formed by the Depositor and consisting primarily of a segregated pool (the
"Mortgage Pool") of multifamily and commercial mortgage loans (the "Mortgage
Loans").
Certain of the Mortgage Loans (the "Merrill Mortgage Loans") will be
acquired by the Depositor from ▇▇▇▇▇▇▇ ▇▇▇▇▇ Mortgage Investors, Inc.
("Merrill") pursuant to the mortgage loan purchase agreement, dated May 16, 2006
(the "Merrill Mortgage Loan Purchase Agreement") between the Depositor and
Merrill. Certain of the Mortgage Loans (the "LaSalle Mortgage Loans") will be
acquired by the Depositor from LaSalle Bank National Association ("LaSalle")
pursuant to the mortgage loan purchase agreement, dated May 16, 2006 (the
"LaSalle Loan Purchase Agreement") between the Depositor and LaSalle. Certain of
the Mortgage Loans (the "PNC Mortgage Loans") will be acquired by the Depositor
from PNC Bank, National Association ("PNC") pursuant to the mortgage loan
purchase agreement, dated May 16, 2006 (the "PNC Mortgage Loan Purchase
Agreement") between the Depositor and PNC. Certain of the Mortgage Loans (the
"Artesia Mortgage Loans") will be acquired by the Depositor from
Artesia Mortgage Capital Corporation ("Artesia") pursuant to the mortgage loan
purchase agreement, dated May 16, 2006 (the "Artesia Mortgage Loan Purchase
Agreement") between the Depositor and PNC. Merrill, LaSalle, PNC and Artesia
collectively constitute the "Mortgage Loan Sellers"; and the Merrill Mortgage
Loan Purchase Agreement, the LaSalle Mortgage Loan Purchase Agreement, the PNC
Mortgage Loan Purchase Agreement and the Artesia Mortgage Loan Purchase
Agreement collectively constitute the "Mortgage Loan Purchase Agreements."
The Trust is to be created and the Certificates are to be issued under a
pooling and servicing agreement, dated as of May 1, 2006 (the "Pooling and
Servicing Agreement"), between the Depositor, as depositor, ▇▇▇▇▇ Fargo Bank,
National Association and Midland Loan Services, Inc., as master servicers,
Midland Loan Services, Inc., as special servicer, LaSalle Bank National
Association, as certificate administrator, and U.S. Bank National Association,
as trustee.
Capitalized terms used herein, but not otherwise defined herein shall have
the meanings set forth in the Mortgage Loan Purchase Agreements.
The Depositor has filed with the Securities and Exchange Commission (the
"Commission") a registration statement (No. 333-130408) on Form S-3 for the
registration of the Certificates under the Securities Act of 1933, as amended
(the "1933 Act"), which registration statement has become effective. The
Depositor proposes to file with the Commission pursuant to Rule 424(b) under the
1933 Act a supplement to the form of prospectus included in such registration
statement relating to the Certificates and the plan of distribution thereof.
Such registration statement, including the exhibits thereto, and information
that is contained in the Prospectus (as defined below) and is deemed to be part
of and included in such registration statement as it may have been amended or
supplemented at the date of the Prospectus, is hereinafter referred to as the
"Registration Statement"; the prospectus first required to be filed to satisfy
the condition set forth in Rule 172(c) and pursuant to Rule 424(b) under the
1933 Act, is hereinafter referred to as the "Base Prospectus"; such supplement
to the Base Prospectus relating to the Certificates, in the form first required
to be filed to satisfy the condition set forth in Rule 172(c) and pursuant to
Rule 424(b) under the 1933 Act (including the Base Prospectus as so
supplemented) is hereinafter referred to as the "Prospectus Supplement"; and the
Base Prospectus and the Prospectus Supplement, together, are hereinafter
referred to as the "Prospectus". A "free writing prospectus" (as defined
pursuant to Rule 405 under the ▇▇▇▇ ▇▇▇) relating to the Certificates is
hereinafter referred to as a "Free Writing Prospectus".
At or prior to the time when sales to purchasers of the Certificates were
first made, which was approximately 1:30 p.m. on May 16, 2006 (the "Time of
Sale"), the Depositor had prepared or caused the preparation of the following
information (collectively, the "Time of Sale Information"): the Depositor's Free
Writing Prospectus dated May 5, 2006 (the "Offering Prospectus") (the cover page
of which is attached hereto as Annex A); the Depositor's Free Writing Prospectus
dated May 12, 2006 (attached hereto as Annex B); the Depositor's prospectus
dated May 5, 2006, relating to the Certificates and previously filed as part of
the Registration Statement; the Term Sheet dated May 5, 2006 relating to the
Certificates (the first page of which is attached hereto as Annex C); and the
pricing information annex attached hereto as Annex D. If, subsequent to the date
of this Agreement, the Depositor and the Lead Underwriter determine that such
information included an untrue statement of material fact or omitted to state a
material fact necessary in order to make the statements therein, in the light of
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the circumstances under which they were made, not misleading and terminate their
old purchase contracts and enter into new purchase contracts with one or more
purchasers of the Certificates, then "Time of Sale Information" as to any such
purchaser will refer to the information conveyed to such purchaser at the time
of entry into the first such new purchase contract, including any information
that corrects such material misstatements or omissions ("Corrective
Information") and "Time of Sale" as to such purchaser will refer to the time and
date on which such new purchase contract was entered into.
1. Representations and Warranties.
(a) The Depositor represents and warrants to the Underwriters as
follows:
(i) The Registration Statement has become effective; no stop order
suspending the effectiveness of the Registration Statement is in effect, and no
proceedings for such purpose are pending or, to the Depositor's knowledge,
threatened by the Commission; the Registration Statement as of its effective
date or deemed effective date pursuant to Rule 430B under the 1933 Act (the
"Effective Date"), and the Prospectus, as of the date of the Prospectus
Supplement, complied in all material respects with the applicable requirements
of the 1933 Act and the rules and regulations thereunder (the "1933 Act
Regulations"); and the information in the Registration Statement, as of the
Effective Date, did not contain any untrue statement of a material fact and did
not omit to state any material fact required to be stated therein or necessary
to make the statements therein not misleading, and the information in the
Prospectus, as of the date of the Prospectus Supplement, did not, and as of the
Closing Date (as hereinafter defined) will not, contain an untrue statement of a
material fact and did not and will not omit to state a material fact necessary
in order to make the information therein, in the light of the circumstances
under which they were made, not misleading; provided, however, that the
Depositor makes no representations, warranties or agreements as to (A) the
information furnished in writing to the Depositor by such Underwriter through
the Lead Underwriter specifically for use in connection with the preparation of
the Time of Sale Information and the Prospectus or any revision or amendment
thereof or supplement thereto and other information in conformity therewith and
in reliance thereon (the "Underwriter Information"), (B) any information for
which the Mortgage Loan Sellers are obligated to indemnify the Underwriters
under the Indemnification Agreements, each dated as of May 16, 2006, between the
respective Mortgage Loan Seller, the Depositor and the Underwriters (the
"Mortgage Loan Seller Information") or (C) any information for which the
Trustee, Certificate Administrator, Master Servicers or Special Servicer is
obligated to indemnify the Underwriters, each under separate indemnification
agreements dated as of May 16, 2006 (the "Trustee/Servicer Information"); and
provided, further, that the Depositor makes no representations, warranties or
agreements regarding untrue statements or omissions in the portions of the
Prospectus Supplement under the heading "Yield and Maturity Considerations" that
arise out of or are based upon untrue statements or omissions in the Mortgage
Loan Seller Information. The Underwriter Information in the Time of Sale
Information and the Prospectus Supplement shall consist of: (i) the first three
sentences of the paragraph immediately above the bolded names of the
Underwriters on the cover page of the Offering Prospectus and the Prospectus
Supplement, respectively; and (ii) the second, fourth and eighth paragraphs and
the first sentence of the sixth paragraph of the section of the Offering
Prospectus and the Prospectus Supplement, respectively, entitled "Method of
Distribution".
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(ii) The Time of Sale Information, at the Time of Sale, did not, and
at the Closing Date will not, contain any untrue statement of a material fact or
omit to state a material fact necessary in order to make the statements therein,
in the light of the circumstances under which they were made, not misleading;
provided that the Depositor makes no representation and warranty with respect to
(A) any Underwriter Information contained in or omitted from the Time of Sale
Information and/or any information that is consistent with such Underwriter
Information, (B) any Mortgage Loan Seller Information contained in or omitted
from such Time of Sale Information or (C) any Trustee/Servicer Information
contained in or omitted from such Time of Sale Information. The parties
acknowledge that none of the Underwriters has furnished any Underwriter
Information to the Depositor expressly for use in the Time of Sale Information
(other than the Offering Prospectus).
(iii) The Depositor (including its agents and representatives other
than the Underwriters in their capacity as such) has not made, used, prepared,
authorized, approved or referred to and will not make, use, prepare, authorize,
approve or refer to any "written communication" (as defined in Rule 405 under
the ▇▇▇▇ ▇▇▇) that constitutes an offer to sell or solicitation of an offer to
buy the Certificates other than (i) the Prospectus, (ii) any document not
constituting a prospectus pursuant to Section 2(a)(10)(a) of the 1933 Act or
Rule ▇▇▇ ▇▇▇▇▇ ▇▇▇ ▇▇▇▇ ▇▇▇, (▇▇▇) the Time of Sale Information, and (iv) each
other written communication of the Depositor or its agents and representatives
approved by the Representative either in writing in advance or in any other
manner mutually agreed to by the Representative and the Depositor (each such
communication referred to in clause (iii) and this clause (iv) constituting an
"issuer free writing prospectus", as defined in Rule 433(h) under the 1933 Act,
being referred to as an "Issuer Free Writing Prospectus"). Each such Issuer Free
Writing Prospectus complied or, if used after the date hereof, will comply, in
all material respects with the 1933 Act and the rules and regulations
promulgated thereunder, has been filed or will be filed in accordance with
Section 4 (to the extent required thereby). Each such Issuer Free Writing
Prospectus referred to in clause (iv) of the second preceding sentence did not
at the Time of Sale, and at the Closing Date will not, contain any untrue
statements of a material fact or (when read in conjunction with the other Time
of Sale Information) omit to state a material fact necessary in order to make
the statements therein, in the light of the circumstances under which they were
made, not misleading; provided that the Depositor makes no representation and
warranty with respect to (i) any Underwriter Information contained in or omitted
from the Prospectus or the Time of Sale Information and/or any information that
is consistent with such Underwriter Information, (ii) any Mortgage Loan Seller
Information contained in or omitted from any such Issuer Free Writing Prospectus
or (iii) any Trustee/Servicer Information contained in or omitted from any such
Issuer Free Writing Prospectus. The parties acknowledge that none of the
Underwriters has furnished any Underwriter Information to the Depositor
expressly for use in any Issuer Free Writing Prospectus referred to in clause
(iv) of the third preceding sentence.
(iv) The Depositor has been duly incorporated and is validly existing
as a corporation in good standing under the laws of the State of Delaware with
corporate power and authority to enter into and perform its obligations under
this Agreement and the Pooling and Servicing Agreement.
(v) The execution, delivery and performance of this Agreement and the
Pooling and Servicing Agreement by the Depositor and the consummation of the
transactions
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contemplated herein and therein by the Depositor and compliance by the Depositor
with its obligations hereunder and thereunder have been duly authorized by all
necessary corporate action and will not (A) contravene any provision of the
certificate of incorporation or by-laws of the Depositor or applicable law or
(B) conflict with or constitute a breach of or default under, or result in the
creation or imposition of any lien, charge or encumbrance upon any property or
assets of the Depositor pursuant to, any contract, indenture, mortgage, loan
agreement, note, lease or other instrument to which the Depositor is a party or
by which it may be bound or to which any of the property or assets of the
Depositor is subject, which conflict, breach, default, lien, charge or
encumbrance is reasonably likely to materially and adversely affect the
Depositor's ability to perform its obligations under this Agreement or the
Pooling and Servicing Agreement.
(vi) The Certificates have been duly authorized for issuance and sale
(or will have been so authorized prior to the issuance thereof) pursuant to this
Agreement and the Pooling and Servicing Agreement. When issued, authenticated
and delivered pursuant to the provisions of this Agreement and of the Pooling
and Servicing Agreement against payment of the consideration therefor in
accordance with this Agreement, the Certificates will be duly and validly issued
and outstanding and entitled to the benefits provided by the Pooling and
Servicing Agreement, except as the enforceability thereof may be limited by the
effect of (A) bankruptcy, insolvency, reorganization, receivership, moratorium
or other similar laws affecting the enforcement of the rights of creditors
generally, and (B) general principles of equity, whether enforcement is sought
in a proceeding in equity or at law. The Certificates and the Pooling and
Servicing Agreement conform in all material respects to all statements relating
thereto contained in the Prospectus.
(vii) No authorization, approval or consent of any court or
governmental authority or agency is necessary in connection with the offering,
issuance or sale of the Certificates hereunder, except such as have been, or as
of the Closing Date will have been, obtained or such as may otherwise be
required under applicable state securities laws in connection with the purchase
and offer and sale of the Certificates by the Underwriters and any recordation
of the respective assignments of the Mortgage Loans to the Trustee pursuant to
the Pooling and Servicing Agreement that have not yet been completed.
(viii) This Agreement has been, and as of the Closing Date the Pooling
and Servicing Agreement will be, duly authorized, executed and delivered by the
Depositor. This Agreement constitutes, and as of the Closing Date the Pooling
and Servicing Agreement will constitute, a legal, valid and binding agreement
enforceable against the Depositor in accordance with its terms, except as such
enforceability may be limited by the effect of (A) bankruptcy, insolvency,
reorganization, receivership, moratorium or other similar laws affecting the
enforcement of the rights of creditors generally, (B) general principles of
equity, whether enforcement is sought in a proceeding in equity or at law, and
(C) public policy considerations underlying the securities laws, to the extent
that such public policy considerations limit the enforceability of the
provisions of this Agreement that purport or are construed to provide
indemnification from securities law liabilities.
(ix) At the time of the execution and delivery of the Pooling and
Servicing Agreement, the Depositor (A) will convey to the Trustee, or cause to
be conveyed to the Trustee,
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all of the Depositor's right, title and interest in and to the Mortgage Loans,
free and clear of any lien, mortgage, pledge, charge, encumbrance, adverse claim
or other security interest (collectively "Liens") granted by or imposed upon the
Depositor, (B) will not have assigned to any other person any of its right,
title or interest in the Mortgage Loans or in the Pooling and Servicing
Agreement or the Certificates, and (C) will have the power and authority to
transfer or cause to be transferred its right, title and interest in the
Mortgage Loans to the Trustee and to sell the Certificates to the Underwriters.
Upon execution and delivery of the Pooling and Servicing Agreement by the
Trustee, the Trustee will have acquired ownership of all of the Depositor's
right, title and interest in and to the Mortgage Loans except to the extent
disclosed in the Prospectus, and upon delivery to the Underwriters of the
Certificates pursuant hereto, each Underwriter will have good title to the
Certificates purchased by such Underwriter, in each case free of Liens granted
by or imposed upon the Depositor.
(x) The Depositor is not, and the issuance and sale of the
Certificates in the manner contemplated by the Prospectus will not cause the
Depositor or the Trust Fund to be, subject to registration or regulation as an
"investment company" under the Investment Company Act of 1940, as amended (the
"1940 Act").
(xi) Under generally accepted accounting principles ("GAAP") and for
federal income tax purposes, the Depositor will report the transfer of the
Mortgage Loans to the Trustee in exchange for the Certificates and the sale of
the Certificates to the Underwriters pursuant to this Agreement as a sale of the
interest in the Mortgage Loans evidenced by the Certificates. The consideration
received by the Depositor upon the sale of the Certificates to the Underwriters
will constitute at least reasonably equivalent value and fair consideration for
the Certificates. The Depositor will be solvent at all relevant times prior to,
and will not be rendered insolvent by, the sale of the Certificates to the
Underwriters. The Depositor is not selling the Certificates to the Underwriters
with any intent to hinder, delay or defraud any of the creditors of the
Depositor.
(xii) The Depositor has not relied on the Underwriters for any tax,
regulatory, accounting or other advice with respect to compliance with or
registration under any statute, rule or regulation of any governmental,
regulatory, administrative or other agency or authority. The Depositor
acknowledges and agrees that (i) the terms of this Agreement and the offering
(including the price of the Certificates) were negotiated at arm's length
between sophisticated parties represented by counsel; (ii) no fiduciary,
advisory or agency relationship between the Depositor and the Underwriters has
been created as a result of any of the transactions contemplated by this
Agreement, irrespective of whether any Underwriter has advised or is advising
the Depositor on other matters; (iii) the Underwriters' obligations to the
Depositor in respect of the offering, and the purchase and sale, of the
Certificates are set forth in this Agreement in their entirety; and (iv) it has
obtained such legal, tax, accounting and other advice as it deems appropriate
with respect to this Agreement and the transactions contemplated hereby and any
other activities undertaken in connection therewith, and it is not relying on
the Underwriters with respect to any such matters.
(xiii) The Trust Fund (other than those portions specified in the
Pooling and Servicing Agreement) will qualify as two separate real estate
mortgage investment conduits (each, a "REMIC") for federal income tax purposes
pursuant to Section 860D of the Internal Revenue Code of 1986, as amended (the
"Code"); the Regular Certificates will constitute
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"regular interests" in a REMIC; and the Class R Certificates will evidence the
sole class of "residual interests" in each related REMIC.
(xiv) There are no legal or governmental proceedings pending or, to
the knowledge of the Depositor, threatened to which the Depositor is a party or
to which any of the properties of the Depositor are subject that are required to
be described in the Prospectus or the Time of Sale Information or necessary in
order to make the statements therein in the light of the circumstances under
which they were made, not misleading and that are not so described, nor are
there any contracts or other documents to which the Depositor is a party or to
which the Depositor or any of the properties of the Depositor are subject that
are required to be described in the Prospectus.
(xv) At the Closing Date, the respective classes of Certificates shall
have been assigned ratings no lower than those set forth in Schedule I hereto by
the nationally recognized statistical rating organizations identified in
Schedule I hereto (the "Rating Agencies").
(xvi) Any taxes, fees and other governmental charges in connection
with the execution, delivery and issuance of this Agreement, the Pooling and
Servicing Agreement and the Certificates payable by the Depositor (other than
income taxes) have been paid or will be paid at or prior to the Closing Date.
(xvii) None of the Depositor or any of its affiliates does business
with the government of Cuba or with any person or affiliate located in Cuba
within the meaning of Section 517.075, Florida Statutes.
(xviii) The Depositor is not, and on the date on which the first bona
fide offer of the Certificates is made (within the meaning of Rule 164(h)(2)
under the ▇▇▇▇ ▇▇▇) will not be, an "ineligible issuer," as defined in Rule 405
under the ▇▇▇▇ ▇▇▇.
(b) Each Underwriter represents and warrants to the Depositor that, as
of the date hereof and as of the Closing Date, such Underwriter has complied
with all of its obligations hereunder.
2. Purchase and Sale.
Subject to the terms and conditions herein set forth and in reliance upon
the representations and warranties herein contained, the Depositor shall sell to
the Underwriters, and each Underwriter shall, severally and not jointly,
purchase from the Depositor, at the related purchase price set forth on Schedule
I hereto, Certificates of each class thereof having an actual or notional amount
as set forth on Schedule I hereto opposite their names plus, if applicable,
accrued interest on the actual principal amount or notional amount thereof at
the applicable Pass-Through Rate from May 1, 2006 to but excluding the Closing
Date (defined below).
3. Delivery and Payment.
Payment of the aggregate purchase price for, and delivery of, the
Certificates shall be made at 10:00 A.M. New York City time on May 25, 2006,
which date and time may be postponed by agreement between the Underwriters and
the Depositor (such time and date of
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payment and delivery, the "Closing Date"). Payment shall be made to the
Depositor by the Underwriters of the purchase prices of the Certificates as set
forth in Schedule I (together with the interest accrued thereon as contemplated
by Section 2 hereof) in immediately available Federal funds wired to such bank
as may be designated by the Depositor, against delivery of the Certificates.
Delivery of the Certificates will be made in book-entry form through the
facilities of The Depository Trust Company ("DTC"). Each class of Certificates
will be represented by one or more definitive global Certificates to be
deposited by or on behalf of the Depositor with DTC or the Trustee. The
Certificates will be made available for examination by the Underwriters not
later than 10:00 a.m. New York City time on the last business day prior to the
Closing Date. The closing of the transactions contemplated hereby shall be made
at the offices of Sidley Austin LLP, ▇▇▇ ▇▇▇▇▇▇▇ ▇▇▇▇▇▇, ▇▇▇ ▇▇▇▇, ▇▇▇ ▇▇▇▇
▇▇▇▇▇, or at such other place as shall be agreed upon by the Underwriters and
the Depositor.
4. Offering by Underwriters; Free Writing Prospectuses.
(a) It is understood that the Underwriters propose to offer the
Certificates for sale as set forth in the Prospectus. It is further understood
that the Depositor, in reliance upon Policy Statement 105, has not and will not
file an offering statement pursuant to Section 352-e of the General Business Law
of the State of New York with respect to the Certificates. Each Underwriter
severally and not jointly therefore agrees that sales of the Certificates made
by such Underwriter in and from the State of New York will be made only to
institutional investors within the meaning of Policy Statement 105.
(b) In connection with the offering of the Certificates, the
Underwriters may each prepare and provide to prospective investors Free Writing
Prospectuses, or portions thereof, subject to the following conditions (to which
such conditions each Underwriter agrees (provided that no Underwriter shall be
responsible for any breach of the following conditions by any other
Underwriter)):
(i) Unless preceded or accompanied by the Prospectus, the
Underwriters shall not convey or deliver, and hereby represent that they
have not conveyed or delivered, any written communication to any person in
connection with the initial offering of the Certificates, unless such
written communication (1) is made in reliance on Rule 134 under the 1933
Act, (2) constitutes a prospectus satisfying the requirements of Rule 430B
under the 1933 Act, or (3) constitutes Time of Sale Information or a Free
Writing Prospectus that does not constitute (but is in all material
respects consistent with) Time of Sale Information. The Underwriters shall
not convey or deliver in connection with the initial offering of the
Certificates any "computational materials" or "ABS term sheets" in reliance
on the "▇▇▇▇▇▇/PSA" no-action letters or any "ABS informational and
computational material," as defined in Item 1101(a) of Regulation AB under
the 1933 Act ("ABS Informational and Computational Material"), in reliance
upon Rules 167 and 426 under the 1933 Act.
(ii) Each Underwriter shall deliver, and hereby represents and
warrants that it has delivered, to the Depositor, no later than two
business days prior to the date of first use thereof or such later date as
may be agreed to by the Depositor, (a) any Free Writing Prospectus that was
prepared by or on behalf of such Underwriter (an
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"Underwriter Free Writing Prospectus") and that contains or contained any
"issuer information," as defined in Rule 433(h) under the 1933 Act and
footnote 271 of the Commission's Securities Offering Reform Release No.
33-8591 ("Issuer Information") (which the parties hereto agree includes,
without limitation, Mortgage Loan Seller Information), and (b) any Free
Writing Prospectus or portion thereof prepared by or on behalf of such
Underwriter that contains or contained only a description of the final
terms of the Certificates. Notwithstanding the foregoing, any Free Writing
Prospectus that contains only ABS Informational and Computational Materials
may be delivered by an Underwriter to the Depositor not later than the
later of (A) two business days prior to the due date for filing of the
Prospectus pursuant to Rule 424(b) under the 1933 Act or such later date as
may be agreed to by the Depositor or (B) the date of first use of such Free
Writing Prospectus.
(iii) Each Underwriter represents and warrants to the Depositor
that the Free Writing Prospectuses furnished or to be furnished to the
Depositor by such Underwriter pursuant to or as contemplated by Section
4(b)(ii) will constitute all Free Writing Prospectuses of the type
described therein that were furnished to prospective investors by such
Underwriter in connection with its offer and sale of the Certificates.
(iv) Each Underwriter represents and warrants to the Depositor
that each Free Writing Prospectus provided or required to be provided by it
to the Depositor pursuant to or as contemplated by Section 4(b)(ii) did
not, as of the Time of Sale, and will not as of the Closing Date, include
any untrue statement of a material fact or omit any material fact necessary
to make the statements contained therein (when read in conjunction with the
Time of Sale Information), in light of the circumstances under which they
were made, not misleading; provided however, that such Underwriter makes no
representation to the extent such misstatements or omissions were the
result of any inaccurate Issuer Information, which information was not
corrected by Corrective Information subsequently supplied by the Depositor
or any Mortgage Loan Seller to such Underwriter within a reasonable period
of time prior to the Time of Sale.
(v) The Depositor agrees to file with the Commission the
following:
(A) Any Issuer Free Writing Prospectus;
(B) Any Free Writing Prospectus or portion thereof delivered
by any Underwriter to the Depositor pursuant to Section 4(b)(ii); and
(C) Any Free Writing Prospectus for which the Depositor or
any person (exclusive of an Underwriter) acting on its behalf
provided, authorized or approved information that is prepared and
published or disseminated by a person unaffiliated with the Depositor
or any other offering participant that is in the business of
publishing, radio or television broadcasting or otherwise
disseminating communications.
Notwithstanding the foregoing, the Depositor shall not be required to
file (1) Issuer Information contained in any Underwriter Free Writing
Prospectus or Free
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Writing Prospectus of any other offering participant other than the
Depositor, if such information is included or incorporated by
reference in a prospectus or Free Writing Prospectus previously filed
with the Commission that relates to the offering of the Certificates,
or (2) any Free Writing Prospectus or portion thereof that contains a
description of the Certificates or the offering of the Certificates
which does not reflect the final terms thereof.
The Depositor is required to file such Free Writing Prospectuses with
the Commission in electronic format and the Underwriters shall use
reasonable efforts to provide to the Depositor such Free Writing
Prospectuses, or portions thereof, in either Microsoft Word(R) or
Microsoft Excel(R) format and not in a PDF, except to the extent that
the Depositor, in its sole discretion, waives such requirements,
(vi) Any Free Writing Prospectus required to be filed pursuant to
Section 4(b)(v) by the Depositor shall be filed with the Commission not
later than the date of first use of the Free Writing Prospectus, except
that (subject to compliance by the Underwriters with Section 4(b)(ii)
hereof in cases where an Underwriter must deliver the subject Free Writing
Prospectus or portion thereof to the Depositor):
(A) Any Free Writing Prospectus or portion thereof required
to be filed that contains only the description of the final terms of
the Certificates shall be filed by the Depositor with the Commission
within two days of the later of the date such final terms have been
established for all classes of Certificates and the date of first use;
(B) Any Free Writing Prospectus or portion thereof required
to be filed that contains only ABS Informational and Computational
Material shall be filed by the Depositor with the Commission not later
than the later of the due date for filing the final Prospectus
relating to the Certificates pursuant to Rule 424(b) under the 1933
Act or two business days after the first use of such Free Writing
Prospectus; and
(C) Any Free Writing Prospectus required to be filed
pursuant to Section 4(b)(v)(C) shall, if no payment has been made or
consideration has been given by or on behalf of the Depositor for the
Free Writing Prospectus or its dissemination, be filed by the
Depositor with the Commission not later than four business days after
the Depositor becomes aware of the publication, radio or television
broadcast or other dissemination of the Free Writing Prospectus.
(vii) Each Underwriter shall file with the Commission any Free
Writing Prospectus that is used or referred to by it and distributed by or
on behalf of such Underwriter in a manner reasonably designed to lead to
its broad, unrestricted dissemination not later than the date of the first
use of such Free Writing Prospectus.
(viii) Notwithstanding the provisions of Section 4(b)(vii), each
Underwriter shall file with the Commission any Free Writing Prospectus for
which such Underwriter or any person acting on its behalf provided,
authorized or approved
10
information that is prepared and published or disseminated by a person
unaffiliated with the Depositor or any other offering participant that is
in the business of publishing, radio or television broadcasting or
otherwise disseminating written communications and for which no payment was
made or consideration given by or on behalf of the Depositor or any other
offering participant, not later than four business days after such
Underwriter becomes aware of the publication, radio or television broadcast
or other dissemination of the Free Writing Prospectus.
(ix) Notwithstanding the provisions of Sections 4(b)(v) and
4(b)(vii), neither the Depositor nor any Underwriter shall be required to
file any Free Writing Prospectus that does not contain substantive changes
from or additions to a Free Writing Prospectus previously filed with the
Commission, and no Underwriter shall be required to file any Free Writing
Prospectus to the extent that the information contained therein is included
in a prospectus or Free Writing Prospectus previously filed that relates to
the offering of the Certificates.
(x) The Depositor and the Underwriters each agree that any Free
Writing Prospectuses prepared by it shall contain the following legend, or
substantially equivalent legend that complies with Rule 433 of the 1933
Act:
The depositor has filed a registration statement (including a
prospectus) with the SEC for the offering to which this
communication relates. Before you invest, you should read the
prospectus in that registration statement and other documents the
depositor has filed with the SEC for more complete information
about the depositor, the issuing entity, and this offering. You
may get these documents for free by visiting ▇▇▇▇▇ on the SEC Web
site at ▇▇▇.▇▇▇.▇▇▇. Alternatively, the depositor, any
underwriter or any dealer participating in the offering will
arrange to send you the prospectus if you request it by calling
toll-free ▇-▇▇▇-▇▇▇-▇▇▇▇.
(xi) The Depositor and each Underwriter agree to retain all Free
Writing Prospectuses that they have used and that are not required to be
filed pursuant to this Section 4 for a period of three years following the
initial bona fide offering of the Certificates.
(xii) (A) If the Depositor becomes aware that, as of the Time of
Sale, any Issuer Free Writing Prospectus delivered to an investor in any
Certificate contained any untrue statement of a material fact or omitted to
state a material fact necessary in order to make the statements contained
therein (when read in conjunction with the Time of Sale Information), in
light of the circumstances under which they were made, not misleading (a
"Defective Issuer Free Writing Prospectus"), the Depositor shall notify the
Underwriters of such untrue statement or omission within one business day
after discovery and the Depositor shall, if requested by the Underwriters,
prepare and deliver to the Underwriters a Free Writing Prospectus that
corrects the material misstatement or omission in the Defective Issuer Free
Writing Prospectus (such corrected Issuer Free Writing Prospectus, a
"Corrected Issuer Free Writing Prospectus").
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(B) If any Underwriter becomes aware that, as of the Time of
Sale, any Underwriter Free Writing Prospectus delivered to an investor
in any Certificates contained any untrue statement of a material fact
or omitted to state a material fact necessary in order to make the
statements contained therein (when read in conjunction with the Time
of Sale Information), in light of the circumstances under which they
were made, not misleading (together with a Defective Issuer Free
Writing Prospectus, a "Defective Free Writing Prospectus"), such
Underwriter shall notify the Depositor of such untrue statement or
omission within one business day after discovery.
(C) The Underwriters shall, if requested by the Depositor:
(1) if the Defective Free Writing Prospectus was an
Underwriter Free Writing Prospectus, prepare a Free Writing
Prospectus that corrects the material misstatement in or omission
from the Defective Free Writing Prospectus (together with a
Corrected Issuer Free Writing Prospectus, a "Corrected Free
Writing Prospectus");
(2) deliver the Corrected Free Writing Prospectus to
each investor which received the Defective Free Writing
Prospectus prior to entering into a contract of sale with such
investor;
(3) notify such investor in a prominent fashion that
the prior contract of sale with the investor has been terminated,
and of the investor's rights as a result of termination of such
agreement;
(4) provide such investor with an opportunity to
affirmatively agree to purchase the Certificates on the terms
described in the Corrected Free Writing Prospectus; and
(5) comply with any other requirements for reformation
of the original contract of sale with such investor, as described
in Section IV.A.2.c of Commission's Securities Offering Reform
Release No. 33-8591.
(D) If the Defective Free Writing Prospectus was an Issuer
Free Writing Prospectus, and the Underwriters shall in good faith
incur any costs to an investor in connection with the reformation of
the contract of sale with the investor, the Depositor agrees to
reimburse the Underwriters for such costs; provided that, before
incurring such costs, the Underwriters first permit the Depositor
access to the applicable investor and an opportunity to attempt to
mitigate such costs through direct negotiation with such investor.
(xiii) Each Underwriter covenants with the Depositor that after
the Prospectus is available such Underwriter shall not distribute any
written information concerning the Certificates to a prospective investor
unless such information is preceded or accompanied by the Prospectus.
12
(c) Each Underwriter further represents and warrants that:
(i) it has only communicated or caused to be communicated and will
only communicate or cause to be communicated an invitation or inducement to
engage in investment activity (within the meaning of Section 21 of the Financial
Services and Markets Act 2000) received by it in connection with the issue or
sale of the certificates in circumstances in which Section 21(1) of the
Financial Services and Markets ▇▇▇ ▇▇▇▇ does not apply to the Depositor; and
(ii) it has complied and will comply with all applicable provisions of
the Financial Services and Markets ▇▇▇ ▇▇▇▇ with respect to anything done by it
in relation to the certificates in, from or otherwise involving the United
Kingdom.
(iii) In relation to each Member State of the European Economic Area
which has implemented the Prospectus Directive (each, a "Relevant Member
State"), each Underwriter represents and agrees with the Depositor that with
effect from and including the date on which the Prospectus Directive is
implemented in that Relevant Member State (the "Relevant Implementation Date")
such Underwriter has not made and will not make an offer of the Certificates to
the public in that Relevant Member State prior to the publication of a
prospectus in relation to the Certificates which has been approved by the
competent authority in that Relevant Member State or, where appropriate,
approved in another Relevant Member State and notified to the competent
authority in that Relevant Member State, all in accordance with the Prospectus
Directive, except that such Underwriter may, with effect from and including the
Relevant Implementation Date, make an offer of the Certificates to the public in
that Relevant Member State at any time:
(A) to legal entities which are authorized or regulated to
operate in the financial markets or, if not so authorized or regulated,
whose corporate purpose is solely to invest in securities;
(B) to any legal entity which has two or more of (1) an average
of at least 250 employees during the last financial year; (2) a total
balance sheet of more than (euro)43,000,000 and (3) an annual net turnover
of more than (euro)50,000,000, as shown in its last annual or consolidated
accounts; or
(C) in any other circumstances which do not require the
publication by the Depositor of a prospectus pursuant to Article 3 of the
Prospectus Directive.
For the purposes of this provision, the expression an "offer of the
Certificates to the public" in relation to any Certificates in any Relevant
Member State means the communication in any form and by any means of sufficient
information on the terms of the offer and the Certificates to be offered so as
to enable an investor to decide to purchase or subscribe the Certificates, as
the same may be varied in that Member State by any measure implementing the
Prospectus Directive in that Member State and the expression "Prospectus
Directive" means Directive 2003/71/EC and includes any relevant implementing
measure in each Relevant Member State.
13
(d) ▇▇▇▇▇▇▇ Lynch, Pierce, ▇▇▇▇▇▇ & ▇▇▇▇▇ Incorporated represents and
warrants to the Depositor that it has the authority to act as Representative of
the Underwriters and to bind the Underwriters hereto.
5. Covenants of the Depositor.
The Depositor covenants with each Underwriter as follows:
(a) The Depositor will give each of the Underwriters notice of its
intention to prepare, use, authorize, approve, refer to or file any Issuer Free
Writing Prospectus or to file or prepare (i) any amendment to the Registration
Statement at any time prior to the Closing Date or (ii) any amendment or
supplement to the Prospectus (including any revised prospectus that the
Depositor proposes for use by the Underwriters in connection with the offering
of the Certificates and that differs from the prospectus on file at the
Commission at the time the Registration Statement became effective, whether or
not such revised prospectus is required to be filed pursuant to Rule 424(b) of
the 1933 Act Regulations) at any time during the period when a prospectus
relating to the Certificates is required to be delivered under the 1933 Act, and
the Depositor will furnish the Underwriters with copies of any such Issuer Free
Writing Prospectus, amendment or supplement a reasonable amount of time prior to
such proposed filing or use, as the case may be, and will not prepare, use,
authorize, approve, refer to or file any such Issuer Free Writing Prospectus or
file any such amendment or supplement or use any such prospectus to which the
Underwriters shall reasonably object.
(b) The Depositor will promptly give the Lead Underwriter notice of
(i) any request by the Commission for any amendment of the Registration
Statement or the Prospectus or for any additional information relating to the
Certificates, (ii) any written notification received by the Depositor of
suspension of qualification of the Certificates for sale in any jurisdiction or
the initiation or threatening of any proceeding for such purpose and (iii) the
issuance by the Commission of any stop order suspending the effectiveness of the
Registration Statement or the institution or, to the knowledge of the Depositor,
threatening any proceeding for that purpose. The Depositor will use its best
efforts to prevent the issuance of any such stop order and, if issued, to obtain
as soon as possible the withdrawal thereof.
(c) The Depositor will cause the Prospectus to be transmitted to the
Commission for filing pursuant to Rule 424(b) under the 1933 Act by means
reasonably calculated to result in filing with the Commission pursuant to said
rule. Subject to Section 4, the Depositor will cause each Issuer Free Writing
Prospectus to be transmitted for filing pursuant to Rule 433 under the 1933 Act
by means reasonably calculated to result in filing with the Commission pursuant
to said rule.
(d) The Depositor will furnish to the Lead Underwriter, from time to
time during the period when a prospectus relating to the Certificates is
required to be delivered under the 1933 Act, such number of copies of the
Prospectus and each Free Writing Prospectus (as amended or supplemented) as the
Lead Underwriter may reasonably request for the purposes contemplated by the
1933 Act or the Securities Exchange Act of 1934, as amended (the "1934 Act") or
the respective applicable rules and regulations of the Commission thereunder.
14
(e) If, during the period after the first date of the public offering
of the Certificates in which a prospectus relating to the Certificates is
required to be delivered under the 1933 Act, any event shall occur as a result
of which it is necessary to amend or supplement the Prospectus in order to make
the Prospectus not misleading in the light of the circumstances existing at the
time it is delivered to a purchaser of Certificates, if the Depositor has actual
knowledge of the event, and if the event is not otherwise disclosed in a filing
to the Registration Statement pursuant to Section 13 or 15(d) of the 1934 Act,
the Depositor will forthwith amend or supplement the Prospectus so that, as so
amended or supplemented, the Prospectus will not include an untrue statement of
a material fact or omit to state a material fact necessary in order to make the
statements therein, in the light of the circumstances existing at the time it is
delivered to a purchaser, not misleading, and the Depositor will furnish to the
Lead Underwriter a reasonable number of copies of such amendment or supplement.
(f) The Depositor will endeavor to arrange for the qualification of
the Certificates for sale under the applicable securities laws of such states
and other jurisdictions of the United States as the Lead Underwriter may
reasonably designate and will maintain such qualification in effect so long as
required for the initial distribution of Certificates; provided, however, that
the Depositor shall not be obligated to qualify as a foreign corporation in any
jurisdiction in which it is not so qualified or to file a general consent to
service of process in any jurisdiction.
(g) The Depositor will use the net proceeds received by it from the
sale of the Certificates in the manner specified in the Prospectus under "Use of
Proceeds".
(h) Whether or not the transactions contemplated by this Agreement are
consummated, the Depositor will pay or cause to be paid all expenses incident to
the performance of the obligations of the Depositor under this Agreement,
including, without limitation, (i) the fees, disbursements and expenses of the
Depositor's counsel and accountants in connection with the purchase of the
Mortgage Loans and the issuance and sale of the Certificates, (ii) all fees and
expenses incurred in connection with the registration and delivery of the
Certificates under the 1933 Act, and all other fees or expenses in connection
with the preparation and filing of the Registration Statement, the Time of Sale
Information, any Issuer Free Writing Prospectus, the Prospectus and amendments
and supplements to any of the foregoing, including all printing costs associated
therewith, and the mailing and delivering of copies thereof to the Underwriters
and dealers, in the quantities specified above, (iii) all costs and expenses
related to the transfer and delivery of the Certificates to the Underwriters,
including any transfer or other taxes payable thereon, (iv) the costs of
printing or producing any "blue sky" memorandum in connection with the offer and
sale of the Certificates under state securities laws and all expenses in
connection with the qualification of the Certificates for the offer and sale
under state securities laws as provided in Section 5(f), including filing fees
and the reasonable fees and disbursements of counsel for the Lead Underwriter in
connection with such qualification and in connection with the "blue sky"
memorandum, (v) the cost of printing the Certificates, (vi) the upfront costs
and charges of any transfer agent, registrar or depository, (vii) the fees and
expenses of the rating agencies incurred in connection with the issuance and
sale of the Certificates and (viii) all other costs and expenses incident to the
performance of the obligations of the Depositor hereunder for which provision is
not otherwise made in this Section. Except as herein provided, the Underwriters
shall be responsible for the payment of all costs and
15
expenses incurred by them, including, without limitation, (i) the fees and
disbursements of counsel of the Underwriters and (ii) such additional costs
arising out of any Free Writing Prospectuses prepared by or on behalf of the
Underwriters and the filing of such materials, if required, with the Commission.
(i) The Depositor shall obtain a letter from Ernst & Young LLP,
certified public accountants, satisfactory in form and substance to the
Depositor and the Lead Underwriter, to the effect that such accountants have
performed certain specified procedures, all of which have been agreed to by the
Depositor and the Lead Underwriter, as a result of which they have determined
that the information included in the Time of Sale Information that the
accountants have examined in accordance with such agreed upon procedures, is
accurate except as to such matters that are not deemed by the Depositor or the
Lead Underwriter to be material.
6. Conditions of Underwriters' Obligations.
Each Underwriter's obligation to purchase the Certificates allocated to it
as set forth on Schedule I hereto shall be subject to the accuracy in all
material respects of the representations and warranties on the part of the
Depositor contained herein as of the date hereof and as of the Closing Date, to
the performance by the Depositor in all material respects of its obligations
hereunder and to the following conditions:
(a) No stop order suspending the effectiveness of the Registration
Statement shall be in effect, and no proceedings for that purpose shall be
pending or, to the Depositor's knowledge, threatened by the Commission and the
Prospectus Supplement and each Free Writing Prospectus required to be filed by
the Depositor pursuant to Section 4(b) shall have been filed or transmitted for
filing by means reasonably calculated to result in a filing with the Commission
pursuant to Rule 424(b) under the 1933 Act or Rule 433 under the 1933 Act, as
applicable.
(b) On the Closing Date, the Lead Underwriter shall have received:
(i) One or more opinions, dated the Closing Date and addressed to
the Underwriters, of counsel to the Depositor, in form and substance
satisfactory to such Lead Underwriter, substantially to the effect that:
(A) The Depositor is a corporation in good standing under
the laws of the State of Delaware.
(B) The Depositor has corporate power and authority to enter
into and perform its obligations under this Agreement and the Pooling
and Servicing Agreement.
(C) Each of this Agreement and the Pooling and Servicing
Agreement has been duly authorized, executed and delivered by the
Depositor. Upon due authorization, execution and delivery by the other
parties thereto, the Pooling and Servicing Agreement will constitute a
valid, legal and binding agreement of the Depositor, enforceable
against the Depositor in accordance with its terms, except as
enforceability may be limited by (1) bankruptcy, insolvency,
16
liquidation, receivership, moratorium, reorganization or other similar
laws affecting the enforcement of the rights of creditors generally,
(2) general principles of equity, whether enforcement is sought in a
proceeding in equity or at law and (3) such other exceptions as are
reasonably acceptable to the Lead Underwriter.
(D) The Certificates, when duly and validly executed,
authenticated and delivered in accordance with the Pooling and
Servicing Agreement and paid for in accordance with this Agreement,
will be entitled to the benefits of the Pooling and Servicing
Agreement.
(E) The Registration Statement was declared effective under
the 1933 Act and, to the best of such counsel's knowledge and
information, no stop order suspending the effectiveness of the
Registration Statement has been issued under the 1933 Act and not
withdrawn, and no proceedings for that purpose have been initiated or
threatened by the Commission.
(F) At the time it was declared effective under the 1933
Act, the Registration Statement (other than any financial, numerical,
accounting or statistical information included or incorporated by
reference therein, as to which no opinion need be rendered) complied
as to form in all material respects with the requirements of the 1933
Act and the 1933 Act Regulations.
(G) To such counsel's knowledge and information, there are
no material contracts, indentures, or other documents of the Depositor
required to be described or referred to in the Registration Statement
or to be filed as exhibits thereto other than those described or
referred to therein or filed or incorporated by reference as exhibits
thereto or that may be filed subsequently to the Closing Date pursuant
to a Current Report on Form 8-K.
(H) The Pooling and Servicing Agreement is not required to
be qualified under the Trust Indenture Act of 1939, as amended, and
the issuance and sale of the Certificates in the manner contemplated
by the Prospectus will not cause the Trust Fund to be subject to
registration or regulation as an "investment company" under the
Investment Company Act of 1940, as amended.
(I) No consent, approval, authorization, or order of any
State of New York or federal court or governmental agency or body is
required for the consummation by the Depositor of the transactions
contemplated herein, except (1) such as have been obtained, (2) such
as may be required under the blue sky laws of any jurisdiction in
connection with the purchase and sale of the Certificates by the
Underwriters, as to which no opinion need be expressed and (3) any
recordation of the assignments of the Mortgage Loans to the Trustee
pursuant to the Pooling and Servicing Agreement that has not yet been
completed.
(J) Neither the sale of the Certificates to the Underwriters
pursuant to this Agreement, nor the consummation by the Depositor of
any other
17
of the transactions contemplated by, or the fulfillment by the
Depositor of the terms of, this Agreement or the Pooling and Servicing
Agreement, will conflict with or result in a breach or violation of
any term or provision of, or constitute a default (or an event which
with the passing of time or notification or both, would constitute a
default) under, (1) the certificate of incorporation or by-laws of the
Depositor or, (2) to the knowledge of such counsel, any material
indenture, agreement or instrument to which the Depositor is a party
or by which it is bound or, (3) any State of New York or federal
statute or regulation applicable to the Depositor or, (4) to the
knowledge of such counsel, any order of any New York or federal court,
regulatory body, administrative agency or governmental body having
jurisdiction over the Depositor except, in the case of either (2) or
(4), for any conflict, breach, violation or default that, in the
judgment of such counsel, is not reasonably likely to materially and
adversely affect the Depositor's ability to perform its obligations
under this Agreement or the Pooling and Servicing Agreement.
(ii) An opinion, dated the Closing Date and addressed to the
Underwriters, of counsel to the Underwriters, reasonably acceptable to the
Underwriters.
(iii) In giving their opinions required by the foregoing
subsections (i) and (ii) of this Section, counsel to the Depositor and the
Underwriters, respectively, shall in each case additionally state that
nothing has come to such counsel's attention that has caused it to believe
that (i), in the case of counsel to the Depositor, the Registration
Statement, the Prospectus or the Time of Sale Information, and (ii) in the
case of counsel to the Underwriters, the Prospectus or the Time of Sale
Information (in each case other than any financial statements and
supporting schedules and numerical, statistical and/or accounting
information included therein, as to which no statement need be made), in
the case of the Registration Statement, as of the time it was declared
effective under the 1933 Act, in the case of the Prospectus, as of the date
thereof or as of the Closing Date, and as of the Time of Sale, in the case
of the Time of Sale Information, contained an untrue statement of a
material fact or omitted to state a material fact necessary to make the
statements therein, in the light of the circumstances under which they were
made, not misleading. Such statement shall be based upon conferences and
telephone conversations with representatives of the parties hereto, the
Mortgage Loan Sellers, the Master Servicers, the Special Servicer, the
Certificate Administrator and the Trustee and such statement may be
qualified that, with limited exception, such counsel will not have reviewed
any loan documents. Such counsel may exclude from such opinion those
sections of the Prospectus and Time of Sale Information that constitute
Mortgage Loan Seller Information and Trustee/Servicer Information.
Such opinion(s) may express its (their) reliance as to factual matters on
the representations and warranties made by, and on certificates or other
documents furnished by officers and/or authorized representatives of, the
parties to this Agreement and the Pooling and Servicing Agreement and on
certificates furnished by public officials. Such opinion(s) may assume the due
authorization, execution and delivery of the instruments and documents referred
to therein by the parties thereto other than the party on behalf of which such
opinion is being rendered. Such opinion(s) may be qualified as an opinion only
on the General Corporation Law
18
of the State of Delaware, the laws of the State of New York and the federal law
of the United States.
(c) On the Closing Date, the Lead Underwriter shall have received a
favorable opinion, dated the Closing Date and addressed to the Underwriters, of
special tax and ERISA counsel to the Depositor (i) regarding the qualification
of each of REMIC I and REMIC II as a real estate mortgage investment conduit
within the meaning of Sections 860A through 860G of the Internal Revenue Code of
1986 and (ii) generally to the effect that the statements in the Base Prospectus
and the Prospectus Supplement under the headings "Federal Income Tax
Consequences" and "ERISA Considerations", to the extent that they constitute
matters of federal law or legal conclusions with respect thereto, while not
purporting to discuss all possible consequences of investment in the
Certificates to all investors, are correct in all material respects with respect
to those consequences or matters that are discussed therein. Such opinion(s) may
express its (their) reliance as to factual matters on the representations and
warranties made by, and on certificates or other documents furnished by officers
and/or authorized representatives of, the parties to this Agreement and the
Pooling and Servicing Agreement and on certificates furnished by public
officials. Such opinion(s) may assume the due authorization, execution and
delivery of the instruments and documents referred to therein by the parties
thereto. Such opinion(s) may be qualified as an opinion only on the federal tax
and ERISA law of the United States.
(d) The Depositor shall have delivered to the Lead Underwriter a
certificate, dated the Closing Date, and signed by an authorized officer or
signatory of the Depositor, to the effect that the signer of such certificate
has examined, or has relied upon an examination conducted by appropriate persons
authorized by him or her of, this Agreement, the Prospectus, the Pooling and
Servicing Agreement and various other closing documents, and that, to his or her
knowledge after reasonable investigation:
(i) the representations and warranties of the Depositor in this
Agreement and the Pooling and Servicing Agreement are true and correct in
all material respects;
(ii) the Depositor has, in all material respects, complied with
all the agreements and satisfied all the conditions on its part to be
performed or satisfied hereunder at or prior to the Closing Date;
(iii) since the date of this Agreement, there has been no
material adverse change in the financial condition of the Depositor; and
(iv) no stop order suspending the effectiveness of the
Registration Statement has been issued and no proceedings for that purpose
have been initiated or threatened by the Commission.
(e) Each Mortgage Loan Seller shall have delivered to the Lead
Underwriter a certificate, dated the Closing Date, and signed by an authorized
officer or signatory of the Mortgage Loan Seller to the effect that:
19
(i) the representations and warranties of the Mortgage Loan
Seller in the respective Mortgage Loan Purchase Agreement are true and
correct in all material respects except as indicated on Schedule A thereto;
(ii) the Mortgage Loan Seller has, in all material respects,
complied with all the agreements and satisfied all the conditions on its
part to be performed or satisfied under the respective Mortgage Loan
Purchase Agreement at or prior to the Closing Date; and
(iii) since the date of this Agreement, there has been no
material adverse change in the financial condition of the Mortgage Loan
Seller.
(f) The Depositor and the Lead Underwriter shall have received from
Ernst & Young LLP, certified public accountants, a letter dated the Closing Date
and addressed to the Underwriters, in form and substance satisfactory to the
Lead Underwriter, stating in effect that:
(i) they have performed certain specified procedures as a result
of which they have determined that certain information of an accounting,
financial or statistical nature set forth in the Prospectus Supplement
agrees with the data sheet or computer tape prepared by or on behalf of
each Mortgage Loan Seller, unless otherwise noted in such letter; and
(ii) they have compared the data contained in the data sheet or
computer tape referred to in the immediately preceding clause (i) to
information contained in the Mortgage Files and in such other sources as
shall be specified by them, and found such data and information to be in
agreement, unless otherwise noted in such letter.
(g) The Depositor shall have received the accountant's letters
specified in Section 5(i).
(h) The Lead Underwriter shall have received, with respect to each of
the Master Servicers, the Special Servicer, the Certificate Administrator and
the Trustee, a favorable opinion of counsel, dated the Closing Date and
addressed to the Underwriters, addressing the valid existence of such party
under the laws of the jurisdiction of its organization, the due authorization,
execution and delivery of the Pooling and Servicing Agreement by such party and,
subject to the same limitations as set forth in Section 6(b)(i)(C), the
enforceability of the Pooling and Servicing Agreement against such party and
such other opinions as shall be reasonably requested by the Lead Underwriter.
Such opinion may express its reliance as to factual matters on representations
and warranties made by, and on certificates or other documents furnished by
officers and/or authorized representatives of, parties to the Pooling and
Servicing Agreement and on certificates furnished by public officials. Such
opinion may assume the due authorization, execution and delivery of the
instruments and documents referred to therein by the parties thereto other than
the party on behalf of which such opinion is being rendered.
(i) Subsequent to the date hereof, there shall not have occurred any
change, or any development involving a prospective change, in or affecting the
business or properties of the Depositor or a Mortgage Loan Seller (including any
of the Mortgage Loans) which such
20
Underwriter concludes, in the reasonable judgment of such Underwriter,
materially impairs the investment quality of the Certificates so as to make it
impractical or inadvisable to proceed with the public offering or the delivery
of the Certificates as contemplated by the Time of Sale Information (excluding
the Corrective Information) and the Prospectus.
(j) The Certificates shall have been assigned ratings by the Rating
Agencies (as defined in the Pooling and Servicing Agreement) no less than those
set forth on Schedule I and such ratings shall not have been withdrawn,
suspended or qualified.
(k) The Lead Underwriter shall have received copies of any opinions of
counsel to the Depositor supplied to the Rating Agencies relating to certain
matters with respect to the Certificates. Any such opinions shall be dated the
Closing Date and addressed to the Underwriters or accompanied by reliance
letters addressed to the Underwriters.
(l) The Depositor shall have furnished to the Lead Underwriter such
further opinions, information, certificates and documents as the Lead
Underwriter may reasonably have requested, and all proceedings in connection
with the transactions contemplated by this Agreement and all documents incident
hereto shall be in all material respects reasonably satisfactory in form and
substance to the Lead Underwriter and its counsel.
7. Indemnification.
(a) The Depositor shall indemnify and hold harmless each Underwriter
(severally and not jointly), its directors and officers and each person, if any,
who controls such Underwriter within the meaning of either Section 15 of the
1933 Act or Section 20 of the 1934 Act, from and against any and all expenses,
losses, claims, damages and other liabilities (including without limitation the
reasonable costs of investigation and legal defense) (the "Liabilities") caused
by (i) any untrue statement or alleged untrue statement of any material fact
contained in the Registration Statement or any omission or alleged omission to
state therein a material fact required to be stated therein or necessary to make
the statements therein, not misleading, or any untrue statement or alleged
untrue statement of any material fact contained in the Prospectus or any
omission or alleged omission to state therein a material fact necessary to make
the statements therein, in the light of the circumstances under which they were
made, not misleading or (ii) any untrue statement or alleged untrue statement of
a material fact contained in the Time of Sale Information or any Issuer Free
Writing Prospectus or any Issuer Information contained in any Underwriter Free
Writing Prospectus (provided that such Issuer Information was delivered to the
Depositor to the extent required by Section 4(b)(ii)), or the omission or
alleged omission to state a material fact necessary to make the statements
therein (when read in conjunction with the other Time of Sale Information), in
light of the circumstances under which they were made, not misleading, which was
not corrected by Corrective Information subsequently supplied by the Depositor
or any Mortgage Loan Seller to any Underwriter within a reasonable period of
time prior to the Time of Sale, or (iii) any breach of the representation and
warranty in Section 1(a)(xviii); provided that, in the case of clauses (i) and
(ii) above, insofar as the Liabilities are caused by any such untrue statement
or omission or alleged untrue statement or omission with respect to any
information in the Prospectus as to which any Underwriter has agreed to
indemnify the Depositor pursuant to Section 7(b), the Depositor shall have no
obligation to so indemnify and hold harmless; and provided, further, that the
Depositor shall
21
have no obligation to so indemnify and hold harmless to the extent that the
Liabilities arise out of or are based upon an untrue statement or omission or an
alleged untrue statement or omission made in, or in reliance upon and conformity
with, or otherwise with respect to the Mortgage Loan Seller Information
(including without limitation untrue statements or alleged untrue statements or
omissions or alleged omissions in the portions of the Prospectus Supplement and
any free writing prospectus under the heading "Yield and Maturity
Considerations" that arise out of or are based upon untrue statements or alleged
untrue statements or omissions or alleged omissions in the Mortgage Loan Seller
Information or the Trustee/Servicer Information).
(b) Each Underwriter shall, severally and not jointly, indemnify and
hold harmless the Depositor, its directors and its officers who signed the
Registration Statement and each person, if any, who controls the Depositor
within the meaning of either Section 15 of the 1933 Act or Section 20 of the
1934 Act against any and all Liabilities as incurred, but only with respect to
Liabilities caused by any (i) untrue statements or alleged untrue statements of
a material fact, or omissions or alleged omissions to state a material fact
necessary to make the statements therein, in the light of the circumstances
under which they were made, not misleading, in the Underwriter Information and
(ii) untrue statements or alleged untrue statements of a material fact in any
Underwriter Free Writing Prospectus prepared by or on behalf of such Underwriter
or omission or alleged omission to state in such Underwriter Free Writing
Prospectus a material fact necessary in order to make the statements therein
(when read in conjunction with the Time of Sale Information), in the light of
the circumstances under which they were made, not misleading; provided, that no
Underwriter shall be obligated to so indemnify and hold harmless (A) to the
extent such Liabilities are caused by a misstatement or omission resulting from
an error or omission in the Issuer Information which was not corrected by
Corrective Information subsequently supplied by the Depositor or any Mortgage
Loan Seller to any Underwriter within a reasonable period of time prior to the
Time of Sale or (B) in the case of clause (ii) of this sentence, with respect to
information that is also contained in the Time of Sale Information.
(c) Each indemnified party shall give notice in writing as promptly as
reasonably practicable to each indemnifying party of any action commenced
against it in respect of which indemnity may be sought hereunder, but failure to
so notify an indemnifying party shall not relieve such indemnifying party from
any liability which it may have otherwise than under subsection (a) or (b) of
this Section 7. Upon request of the indemnified party, the indemnifying party
shall retain counsel reasonably satisfactory to the indemnified party to
represent the indemnified party and any others the indemnifying party may
designate in such proceeding and shall pay the fees and disbursements of such
counsel related to such proceeding as incurred. If any action is brought against
any indemnified party and it notifies the indemnifying party of the commencement
thereof, the indemnifying party may participate at its own expense in the
defense of any such action. The indemnifying party may elect to assume the
defense thereof, with counsel reasonably satisfactory to such indemnified party
by written notice delivered to the indemnified party promptly after receiving
the aforesaid notice from the indemnified party. In any such proceeding, any
indemnified party shall have the right to retain its own counsel, but the fees
and expenses of such counsel shall be at the expense of such indemnified party
unless (i) the indemnifying party and the indemnified party shall have agreed to
the retention of such counsel, (ii) the named parties to any such proceeding
(including any impleaded parties) include both the indemnifying party and the
indemnified party and representation of both parties by the same
22
counsel would be inappropriate due to actual or potential differing interests
between them or (iii) the indemnifying party shall have failed to designate
within a reasonable period of time counsel reasonably satisfactory to the
indemnified party (in which case the fees and expenses shall be paid as incurred
by the indemnifying party). In no event shall the indemnifying parties be liable
for fees and expenses of more than one counsel (in addition to any local
counsel) separate from their own counsel for all indemnified parties in
connection with any one action or separate but similar or related actions in the
same jurisdiction arising out of the same general allegations or circumstances.
An indemnifying party shall not be liable for any settlement of any proceeding
effected without its written consent. However, if settled with such consent or
if there be a final judgment for the plaintiff, the indemnifying party shall
indemnify the indemnified party from and against any loss or liability by reason
of such settlement or judgment. Notwithstanding the foregoing sentence, if at
any time an indemnified party shall have requested an indemnifying party to
reimburse the indemnified party for fees and expenses of counsel for which the
indemnifying party is obligated under this subsection, the indemnifying party
agrees that it shall be liable for any settlement of any proceeding effected
without its written consent if (i) such settlement is entered into more than 30
days after receipt by such indemnifying party of the aforesaid request and (ii)
such indemnifying party shall not have reimbursed the indemnified party in
accordance with such request prior to the date of such settlement. If an
indemnifying party assumes the defense of any proceeding, it shall be entitled
to settle such proceeding with the consent of the indemnified party or, if such
settlement provides for an unconditional release of the indemnified party,
without any admission of fault, culpability or failure to act or on behalf of
the indemnified party, in connection with all matters relating to the proceeding
that have been asserted against the indemnified party in such proceeding by the
other parties to such settlement, without the consent of the indemnified party.
(d) If the indemnification provided for in this Section 7 is due in
accordance with its terms but is for any reason unavailable to an indemnified
party under subsection (a) or (b), or insufficient to hold harmless an
indemnified party, in respect of any losses, claims, damages or liabilities
under subsection (a) or (b) on grounds of public policy or otherwise, then the
indemnifying party, in lieu of indemnifying such indemnified party, shall
contribute to the amount paid or payable by such indemnified party as a result
of such losses, claims, damages or liabilities (i) in such proportion as is
appropriate to reflect the relative benefits received by the Depositor on the
one hand and the applicable Underwriter on the other from the offer and sale of
the Certificates pursuant hereto or (ii) if the allocation provided by clause
(i) above is not permitted by applicable law, in such proportion as is
appropriate to reflect not only the relative benefits referred to in clause (i)
above but also the relative fault of the Depositor on the one hand and of such
Underwriter on the other in connection with the statements or omissions which
resulted in such losses, claims, damages or other liabilities, as well as any
other relevant equitable considerations. The relative benefits received by the
Depositor on the one hand, and such Underwriter on the other, in connection with
the offering of the Certificates underwritten by such Underwriter shall be
deemed to be in the same respective proportions that the total proceeds from the
sale of the Certificates underwritten by such Underwriter (before deducting
expenses) received by the Depositor and the amount by which (i) the total price
received by such Underwriter with respect to the initial resale to investors in
the Certificates acquired by such Underwriter exceeds (ii) the total
underwriting discounts and commissions received by such Underwriter (or, if no
such Underwriter discounts and commissions are payable hereunder, the amount of
the other fees payable to such Underwriter in connection with the offering of
the
23
Certificates), bear to the aggregate offering price of the Certificates. The
relative fault of the Depositor on the one hand and of such Underwriter on the
other shall be determined by reference to, among other things, whether the
untrue or alleged untrue statement of a material fact or the omission or alleged
omission to state a material fact relates to information supplied by the
Depositor or by such Underwriter, and the parties' relative intent, knowledge,
access to information and opportunity to correct or prevent such statement or
omission.
(e) The parties hereto agree that it would not be just and equitable
if contribution were determined by pro rata allocation or by any other method of
allocation that does not take account of the considerations referred to in
subsection (d) above. The amount paid or payable by an indemnified party as a
result of the losses, claims, damages or other liabilities referred to in this
Section 7 shall be deemed to include any legal fees and disbursements or other
expenses reasonably incurred by such indemnified party in connection with
investigating or defending any such claim. If any expenses so paid by the
indemnifying party are subsequently determined to not be required to be borne by
the indemnifying party hereunder, the party which received such payment shall
promptly refund the amount so paid to the party which made such payment.
Notwithstanding the provisions of subsection (d) above or this subsection (e),
no Underwriter shall be required to contribute any amount in excess of the
amount by which (i) the total underwriting discounts and commissions and other
fees received by such Underwriter in connection with the offering of the
Certificates exceeds (ii) the amount of damages that such Underwriter has
otherwise been required to pay by reason of such untrue or alleged untrue
statement or omission or alleged omission. No person guilty of fraudulent
misrepresentation (within the meaning of Section 11(f) of the ▇▇▇▇ ▇▇▇) shall be
entitled to contribution from any person who was not guilty of such fraudulent
misrepresentation. The remedies provided for in this Section 7 are not exclusive
and shall not limit any rights or remedies that may otherwise be available to
any indemnified party at law or in equity.
(f) The indemnity and contribution agreements contained in this
Section 7 shall remain operative and in full force and effect regardless of (i)
any termination of this Agreement, (ii) any investigation made by the Depositor,
an Underwriter, any of their respective directors or officers, or any person
controlling the Depositor or such Underwriter within the meaning of either
Section 15 of the 1933 Act or Section 20 of the 1934 Act, and (iii) acceptance
of and payment for any of the Certificates.
(g) The Underwriters' respective obligations to contribute pursuant to
this Section 7 are several in proportion to the respective amount of
Certificates they have purchased hereunder, and not joint.
(h) Each Underwriter (the "Indemnifying Underwriter") will indemnify
and hold harmless the other Underwriters and each person, if any, who controls
such Underwriter within the meaning of either the 1933 Act or the 1934 Act (the
"Non-Indemnifying Underwriter") from and against any and all losses, claims,
damages or liabilities, joint or several, to which the Non-Indemnifying
Underwriter becomes subject under the 1933 Act, the 1934 Act or other federal or
state statutory law or regulation, common law or otherwise, insofar as such
losses, claims, damages or liabilities (or actions in respect thereof) arise out
of or are based upon (i) any untrue statement or alleged untrue statement of a
material fact or the omission or alleged omission (when read in conjunction with
the Time of Sale Information) to state a material fact
24
necessary in order to make the statements, in the light of the circumstances
under which they were made, not misleading at the Time of Sale, contained in any
Underwriter Free Writing Prospectus prepared by, or on behalf of, or used or
referred to by, such Indemnifying Underwriter or (ii) the failure of such
Indemnifying Underwriter, or any member of its selling group, to comply with any
provision of Sections 4(b) or 9, and agrees to reimburse such Non-Indemnifying
Underwriter, as incurred for any legal or other expenses reasonably incurred by
them in connection with investigating or defending any such loss, claim, damage,
liability or action, except to the extent such losses, claims, damages or
liabilities are caused by a misstatement or omission resulting from an error or
omission in the Issuer Information which was not corrected by Corrective
Information subsequently supplied by the Depositor or any Mortgage Loan Seller
to any Underwriter within a reasonable period of time prior to the Time of Sale.
This agreement will be in addition to any liability that any Underwriter may
otherwise have.
8. Representations and Warranties to Survive Delivery.
All representations and warranties of the Depositor contained in this
Agreement shall remain operative and in full force and effect, regardless of any
investigation made by or on behalf of any Underwriter or any controlling person
in respect of such Underwriter, and shall survive delivery of the Certificates
to the Underwriters.
9. Defaulting Underwriter.
If, on the Closing Date, any of the Underwriters shall fail or refuse to
purchase Certificates that it has agreed to purchase hereunder on such date, and
the aggregate principal amount of Certificates which such defaulting Underwriter
agreed but failed or refused to purchase is not more than one-tenth of the
aggregate principal amount of Certificates to be purchased on such date, the
other Underwriters shall be obligated to purchase the Certificates which such
defaulting Underwriter agreed but failed or refused to purchase on such date;
provided that no Underwriter shall be obligated under this Section 9 to purchase
Certificates of a Class that it is not otherwise obligated to purchase under
this Agreement. If, on the Closing Date, one of the Underwriters shall fail or
refuse to purchase Certificates that it has agreed to purchase hereunder on such
date and the aggregate principal amount of Certificates with respect to which
such default occurs is more than one-tenth of the aggregate principal amount of
Certificates to be purchased on such date and arrangements satisfactory to the
non-defaulting Underwriters and the Depositor for the purchase of such
Certificates are not made within 36 hours after such default, this Agreement
shall terminate without liability on the part of any non-defaulting Underwriter
or of the Depositor. In any such case either such non-defaulting Underwriters or
the Depositor shall have the right to postpone the Closing Date, but in no event
for longer than seven days, in order that the required changes, if any, in the
Prospectus or in any other documents or arrangements may be effected. Any action
taken under this paragraph shall not relieve any defaulting Underwriter from
liability in respect of any default of such Underwriter under this Agreement.
25
10. Termination of Agreement.
(a) The Lead Underwriter may terminate its obligations under this
Agreement, by notice to the Depositor, at any time at or prior to the Closing
Date if the sale of the Certificates provided for herein is not consummated
because of any failure or refusal on the part of the Depositor to comply in all
material respects with the terms, or to fulfill in all material respects any of
the conditions of, this Agreement, or if for any reason the Depositor shall be
unable to perform in all material respects its obligations under this Agreement.
(b) The Lead Underwriter may terminate its obligations under this
Agreement in the absolute discretion of the Lead Underwriter, by notice given to
the Depositor, if (A) after the execution and delivery of this Agreement and
prior to the Closing Date (i) trading generally shall have been suspended or
materially limited on or by any of the New York Stock Exchange or the
over-the-counter market; (ii) a general moratorium on commercial banking
activities shall have been declared by federal or New York State authorities;
(iii) there shall have occurred a material disruption in securities settlement
or clearance services in the United States; or (iv) there shall have occurred
any outbreak or escalation of hostilities or any change or prospective change in
financial markets or any calamity or crisis, either within or outside the United
States, that in the judgment of the Underwriter is material and adverse and
makes it impracticable or inadvisable to proceed with the offering, sale or
delivery of the Certificates on the terms and in the manner contemplated by this
Agreement and the Prospectus.
(c) If any Underwriter terminates its obligations under this Agreement
in accordance with Section 10(a), the Depositor shall reimburse such Underwriter
for all reasonable out-of pocket expenses (including reasonable fees and
disbursements of counsel) that shall have been reasonably incurred by such
Underwriter in connection with the proposed purchase and sale of the
Certificates.
11. Notices.
All notices and other communications hereunder shall be in writing and
shall be deemed duly given if delivered by certified mail and facsimile. Notices
to (i) the Underwriters shall be given to the Representative at ▇▇▇▇▇▇▇ Lynch,
Pierce, ▇▇▇▇▇▇ & ▇▇▇▇▇ Incorporated c/o Global Commercial Real Estate, 4 World
Financial Center, ▇▇▇ ▇▇▇▇▇ ▇▇▇▇▇▇, ▇▇▇▇ ▇▇▇▇▇, ▇▇▇ ▇▇▇▇, ▇▇▇ ▇▇▇▇ ▇▇▇▇▇ (fax:
▇▇▇-▇▇▇-▇▇▇▇), Attention: ▇▇▇▇▇ ▇. ▇▇▇▇▇▇▇ (with copies to (a) ▇▇▇▇▇▇▇ ▇▇▇▇▇
Mortgage Investors, Inc., 4 World Financial Center, ▇▇▇ ▇▇▇▇▇ ▇▇▇▇▇▇, ▇▇▇▇
▇▇▇▇▇, ▇▇▇ ▇▇▇▇, ▇▇▇ ▇▇▇▇ ▇▇▇▇▇ (fax: ▇▇▇-▇▇▇-▇▇▇▇), Attention: Director of CMBS
Securitizations and (b) ▇▇▇▇▇▇▇ ▇▇▇▇▇ Mortgage Investors, Inc., 4 World
Financial Center, ▇▇▇ ▇▇▇▇▇ ▇▇▇▇▇▇, ▇▇▇▇ ▇▇▇▇▇, ▇▇▇ ▇▇▇▇, ▇▇▇ ▇▇▇▇ ▇▇▇▇▇ (fax:
▇▇▇-▇▇▇-▇▇▇▇), Attention: General Counsel for Global Commercial Real Estate in
the Office of the General Counsel); (ii) the Depositor shall be given to it at
▇▇▇▇▇▇▇ ▇▇▇▇▇ Mortgage Investors, Inc., ▇/▇ ▇▇▇▇▇▇ ▇▇▇▇▇▇▇▇▇▇ ▇▇▇▇ ▇▇▇▇▇▇, ▇
World Financial Center, ▇▇▇ ▇▇▇▇▇ ▇▇▇▇▇▇, ▇▇▇▇ ▇▇▇▇▇, ▇▇▇ ▇▇▇▇, ▇▇▇ ▇▇▇▇ ▇▇▇▇▇
(fax: ▇▇▇-▇▇▇-▇▇▇▇), Attention: ▇▇▇▇▇ ▇. ▇▇▇▇▇▇▇ (with copies to (a) ▇▇▇▇▇▇▇
▇▇▇▇▇ Mortgage Investors, Inc., 4 World Financial Center, ▇▇▇ ▇▇▇▇▇ ▇▇▇▇▇▇, ▇▇▇▇
▇▇▇▇▇, ▇▇▇ ▇▇▇▇, ▇▇▇ ▇▇▇▇ ▇▇▇▇▇ (fax: ▇▇▇-▇▇▇-▇▇▇▇), Attention: Director of CMBS
Securitizations; and (b) ▇▇▇▇▇▇▇ ▇▇▇▇▇ Mortgage Investors, Inc., 4 World
Financial Center, ▇▇▇ ▇▇▇▇▇ ▇▇▇▇▇▇, ▇▇▇▇ ▇▇▇▇▇, ▇▇▇ ▇▇▇▇, ▇▇▇ ▇▇▇▇ ▇▇▇▇▇ (fax:
▇▇▇-▇▇▇-▇▇▇▇), Attention: General Counsel for Global Commercial Real
26
Estate in the Office of the General Counsel); and (iii) any such party shall be
given to such other address as may hereafter be furnished by such party to the
others in writing.
12. Parties.
This Agreement shall inure to the benefit of and be binding upon the
Underwriters and the Depositor and their respective successors. Nothing
expressed or mentioned in this Agreement is intended or shall be construed to
give any person or entity, other than the Underwriters and the Depositor and
their respective successors and the controlling persons and officers and
directors referred to in Section 7 and their respective successors, heirs and
legal representatives, any legal or equitable right, remedy or claim under or in
respect of this Agreement or any provision herein contained. This Agreement and
all conditions and provisions hereof are intended to be for the sole and
exclusive benefit of the Underwriters and the Depositor and their respective
successors, and said controlling persons and officers and directors and their
respective successors, heirs and legal representatives, and for the benefit of
no other person or entity. No purchaser of Certificates from the Underwriters
shall be deemed to be a successor by reason merely of such purchase.
13. Governing Law.
This Agreement shall be governed by and construed in accordance with the
laws of the State of New York applicable to agreements made and to be performed
in said State.
14. Entire Agreement.
This Agreement, together with any contemporaneous written agreements and
any prior written agreements (to the extent not superseded by this Agreement)
that relate to the offering of the Certificates, represents the entire agreement
between the Depositor, on the one hand, and the Underwriters, on the other, with
respect to the preparation of the Prospectus, and the conduct of the offering,
and the purchase and sale of the Certificates.
15. Miscellaneous.
Neither this Agreement nor any term hereof may be amended, waived,
discharged or terminated except by a writing signed by the party against whom
enforcement of such amendment, waiver, discharge or termination is sought. This
Agreement may be signed in any number of duplicate originals, each of which
shall be deemed an original, which taken together shall constitute one and the
same instrument.
27
If the foregoing is in accordance with your understanding of our agreement,
please sign and return to the Depositor a counterpart hereof, whereupon this
instrument, along with all counterparts, will become a binding agreement between
the Underwriters and the Depositor in accordance with its terms.
16. Authority of the Representative.
Any action by the Underwriters hereunder may be taken by ▇▇▇▇▇▇▇ Lynch,
Pierce, ▇▇▇▇▇▇ & ▇▇▇▇▇ Incorporated on behalf of the Underwriters, and any such
action taken by ▇▇▇▇▇▇▇ Lynch, Pierce, ▇▇▇▇▇▇ & ▇▇▇▇▇ Incorporated shall be
binding upon the Underwriters.
28
Very truly yours,
▇▇▇▇▇▇▇ ▇▇▇▇▇ MORTGAGE INVESTORS, INC.
By /s/ ▇▇▇▇▇ ▇. ▇▇▇▇▇▇▇
-------------------------------------
Title: Executive Vice President
Chief Officer in Charge of
Commercial Mortgage Securitization
CONFIRMED AND ACCEPTED,
as of the date first above written:
▇▇▇▇▇▇▇ LYNCH, PIERCE, ▇▇▇▇▇▇ & ▇▇▇▇▇ INCORPORATED
For itself and on behalf of LaSalle Financial Services, Inc.,
▇▇▇▇▇▇▇, Sachs & Co. and ▇▇▇▇▇▇ ▇▇▇▇▇▇▇ & Co. Incorporated.
By: /s/ ▇▇▇▇▇ ▇. ▇▇▇▇▇▇▇
-----------------------------------
Authorized Signatory
PNC CAPITAL MARKETS LLC
By: /s/ ▇▇▇▇▇▇ ▇. ▇▇▇▇▇▇▇▇▇
-----------------------------------
Name: ▇▇▇▇▇▇ ▇. ▇▇▇▇▇▇▇▇▇
Title: Director
29
ANNEX A
The First Page of the Depositor's Free Writing Prospectus dated May 5, 2006
30
The information in this free writing prospectus may be amended and/or
supplemented prior to the time of sale. The information in this free writing
prospectus supersedes any contrary information contained in any prior free
writing prospectus relating to the subject securities and will be superseded by
any contrary information contained in any subsequent free writing prospectus
prior to the time of sale. In addition, certain information regarding the
subject securities is not yet available and, accordingly, has been omitted from
this free writing prospectus.
THE DATE OF THIS FREE WRITING PROSPECTUS IS MAY 5, 2006
The depositor has filed a registration statement (including a prospectus)
with the SEC (SEC File No. 333-130408) for the offering to which this
communication relates. Before you invest, you should read the prospectus in
that registration statement and other documents the depositor has filed with
the SEC for more complete information about the depositor, the issuing entity
and this offering. You may get these documents for free by visiting ▇▇▇▇▇ on
the SEC Web site at ▇▇▇.▇▇▇.▇▇▇. Alternatively, the depositor, any underwriter
or any dealer participating in the offering will arrange to send you the
prospectus if you request it by calling toll free ▇▇▇-▇▇▇-▇▇▇▇.
----------------
$2,330,570,000
(Approximate)
▇▇▇▇▇▇▇ ▇▇▇▇▇ MORTGAGE TRUST 2006-C1
as Issuing Entity
COMMERCIAL MORTGAGE PASS-THROUGH CERTIFICATES, SERIES 2006-C1
▇▇▇▇▇▇▇ ▇▇▇▇▇ MORTGAGE INVESTORS, INC.
as Depositor
LASALLE BANK NATIONAL ASSOCIATION
▇▇▇▇▇▇▇ ▇▇▇▇▇ MORTGAGE LENDING, INC.
PNC BANK, NATIONAL ASSOCIATION
ARTESIA MORTGAGE CAPITAL CORPORATION
as Sponsors and Loan Sellers
------------
We are ▇▇▇▇▇▇▇ ▇▇▇▇▇ Mortgage Investors, Inc., the depositor with respect
to the securitization transaction that is the subject of this offering
prospectus. Only the classes of commercial mortgage pass-through certificates
listed in the table below are being offered by this offering prospectus and the
accompanying base prospectus. The offered certificates represent beneficial
interests only in the issuing entity identified above and will not represent
obligations of or interests in the depositor, any sponsor or any of their
respective affiliates. The assets of the issuing entity will consist primarily
of a pool of 245 commercial, multifamily and manufactured housing community
mortgage loans with an initial mortgage pool balance of approximately
$2,495,925,284 and the other characteristics described in this offering
prospectus.
INVESTING IN THE OFFERED CERTIFICATES INVOLVES RISKS. YOU SHOULD CAREFULLY
REVIEW THE FACTORS DESCRIBED UNDER "RISK FACTORS" BEGINNING ON PAGE 42 OF THIS
OFFERING PROSPECTUS AND ON PAGE 18 OF THE ACCOMPANYING BASE PROSPECTUS.
The holders of each class of offered certificates will be entitled to
receive monthly distributions of interest, principal or both, commencing in
June 2006. The offered certificates will accrue interest from May 1, 2006. The
pass-through rates for some classes of the offered certificates will be
variable. Credit enhancement for any particular class of the offered
certificates is being provided through the subordination of various other
classes, including multiple non-offered classes, of the certificates.
APPROXIMATE APPROXIMATE
INITIAL INITIAL ASSUMED FINAL RATED FINAL
EXPECTED TOTALPRINCIPAL PASS- DISTRIBUTION DISTRIBUTION
RATINGS(FITCH/S&P) BALANCE THROUGHRATE DATE DATE
-------------------- ---------------- ------------- --------------- -------------
Class A-1 ..... AAA/AAA $ 91,545,000 % February 2011 May 2039
Class A-2 ..... AAA/AAA $380,910,000 % May 2011 May 2039
Class A-3 ..... AAA/AAA $159,000,000 % April 2013 May 2039
Class A-SB .... AAA/AAA $113,900,000 % August 2015 May 2039
Class A-4 ..... AAA/AAA $757,147,000 % March 2016 May 2039
Class A-1A .... AAA/AAA $244,645,000 % March 2016 May 2039
Class AM ...... AAA/AAA $249,593,000 % April 2016 May 2039
Class AJ ...... AAA/AAA $218,393,000 % April 2016 May 2039
Class B ....... AA/AA $ 56,159,000 % May 2016 May 2039
Class C ....... AA-/AA- $ 28,079,000 % May 2016 May 2039
Class D ....... A/A $ 31,199,000 % May 2016 May 2039
No one will list the offered certificates on any national securities
exchange or any automated quotation system of any registered securities
association. The Securities and Exchange Commission and state securities
regulators have not approved or disapproved of the certificates offered to you
or determined if this offering prospectus or the accompanying base prospectus
is adequate or accurate. Any representation to the contrary is a criminal
offense.
▇▇▇▇▇▇▇ Lynch, Pierce, ▇▇▇▇▇▇ & ▇▇▇▇▇ Incorporated, LaSalle Financial
Services, Inc., PNC Capital Markets LLC, ▇▇▇▇▇▇▇, Sachs & Co. and ▇▇▇▇▇▇
▇▇▇▇▇▇▇ & Co. Incorporated are the underwriters of this offering. ▇▇▇▇▇▇▇
Lynch, Pierce, ▇▇▇▇▇▇ & ▇▇▇▇▇ Incorporated and LaSalle Financial Services, Inc.
are acting as co-lead managers, and ▇▇▇▇▇▇▇ Lynch, Pierce, ▇▇▇▇▇▇ & ▇▇▇▇▇
Incorporated is acting as sole bookrunning manager with respect to the offered
certificates. PNC Capital Markets LLC, ▇▇▇▇▇▇▇, Sachs & Co. and ▇▇▇▇▇▇ ▇▇▇▇▇▇▇
& Co. Incorporated will act as co-managers. We will sell the offered
certificates to the underwriters, who will sell their respective allotments of
those securities from time to time in negotiated transactions or otherwise at
varying prices to be determined at the time of sale. The underwriters expect to
deliver the offered certificates to purchasers on or about May 25, 2006. We
will identify in a final prospectus supplement relating to the offered
certificates the amount of sale proceeds that we expect to receive from this
offering before deducting expenses payable by us. Not every underwriter will
have an obligation to buy offered certificates from us. See "Method of
Distribution" in this offering prospectus.
▇▇▇▇▇▇▇ ▇▇▇▇▇ & CO. LASALLE FINANCIAL SERVICES, INC.
PNC CAPITAL MARKETS LLC ▇▇▇▇▇▇▇, SACHS & CO. ▇▇▇▇▇▇ ▇▇▇▇▇▇▇
ANNEX B
The Free Writing Prospectus Dated May 12, 2006
31
Free Writing Prospectus
Filed Pursuant to Rule 433
Registration No.: ▇▇▇-▇▇▇▇▇▇-▇▇
MLMT 2006-C1 - New Issue $2.490 bn approx Fixed Rate CMBS
▇▇▇▇▇▇▇ ▇▇▇▇▇ Mortgage Trust 2006-C1
Commercial Mortgage Pass-Through Certificates, Series 2006-C1
Bookrunner: ▇▇▇▇▇▇▇ ▇▇▇▇▇
Co-Lead Managers: ▇▇▇▇▇▇▇ ▇▇▇▇▇, LaSalle Financial Services
Co-Managers: PNC, ▇▇▇▇▇▇▇ ▇▇▇▇▇, ▇▇▇▇▇▇ ▇▇▇▇▇▇▇
Rating Agencies: Fitch, S&P
Note the following changes:
(1) Walgreen's Baltimore loan (0.24% of IPB) has been removed from the deal.
This will result in changes to the overall pool statistics.
(2) Class A3 has been split into A3 and A3B.
Pl. see updated bond information below:
Class Size($mm) (F/S) Sub Lvl WAL Prin Window Px Guid Stat
A1 91.545 AAA/AAA 30.000 2.681 1 - 57 S+3a 0.7x
A2 380.444 AAA/AAA 30.000 4.824 57 - 60 S+12a 0.3x
A3 134.000 AAA/AAA 30.000 6.315 73 - 81 S+27a SUBJECT
A3B 25.000 AAA/AAA 30.000 6.872 81 - 83 **NOT OFFERED**
ASB 113.900 AAA/AAA 30.000 7.279 60 - 111 S+22a SUBJECT
A4 753.353 AAA/AAA 30.000 9.694 111 - 118 S+23a SUBJECT
A1A 244.645 AAA/AAA 30.000 8.934 1 - 118 **NOT OFFERED**
AM 248.983 AAA/AAA 20.000 9.852 118 - 119 S+26a 1.1x
AJ 217.861 AAA/AAA 11.250 9.881 119 - 119 S+29a 0.2x
B 56.022 AA/AA 9.000 9.910 119 - 120 S+33a 0.6x
C 28.010 AA-/AA- 7.875 9.964 120 - 120 S+35a 0.4x
D 31.123 A/A 6.625 9.964 120 - 120 S+43a 0.4x
The depositor has filed a registration statement (including a prospectus) with
the SEC (SEC File No. 333-130408) for the offering to which this communication
relates. Before you invest, you should read the prospectus in that registration
statement and other documents the depositor has filed with the SEC for more
complete information about the depositor, the issuing entity and this offering.
You may get these documents for free by visiting ▇▇▇▇▇ on the SEC Web site at
▇▇▇.▇▇▇.▇▇▇. Alternatively, the depositor, any underwriter or any dealer
participating in the offering will arrange to send you the prospectus if you
request it by calling toll free (▇▇▇) ▇▇▇-▇▇▇▇.
The information set forth herein is subject to change prior to the time of sale
of any securities sold to you.
Any disclaimers or other notices that may appear in the text of, at the bottom
of, or attached to, this communication (other than as contained in this
paragraph) should be disregarded. Such disclaimers or other notices have been
automatically generated as a result of this message being sent via Bloomberg or
another system.
ANNEX C
The First Page of the Depositor's Term Sheet dated May 5, 2006
32
FREE WRITING PROSPECTUS
FILED PURSUANT TO RULE 433
REGISTRATION STATEMENT NO.: ▇▇▇-▇▇▇▇▇▇-▇▇
The depositor has filed a registration statement (including a prospectus) with
the SEC (SEC File No. 333-130408) for the offering to which this communication
relates. Before you invest, you should read the prospectus in that registration
statement and other documents the depositor has filed with the SEC for more
complete information about the depositor, the issuing entity and this offering.
You may get these documents for free by visiting ▇▇▇▇▇ on the SEC Web site at
▇▇▇.▇▇▇.▇▇▇. Alternatively, the depositor, any underwriter or any dealer
participating in the offering will arrange to send you the prospectus if you
request it by calling toll free ▇▇▇-▇▇▇-▇▇▇▇.
[LaSalle Bank LOGO]
[▇▇▇▇▇▇▇ ▇▇▇▇▇ LOGO]
[PNC Bank LOGO] [Artesia LOGO]
PRELIMINARY STRUCTURAL AND COLLATERAL TERM SHEET
$2,330,570,000 (APPROXIMATE)
COMMERCIAL MORTGAGE PASS-THROUGH CERTIFICATES, SERIES 2006-C1
CLASS A-1, CLASS ▇-▇, ▇▇▇▇▇ ▇-▇, CLASS A-SB, CLASS A-4, CLASS A-1A,
CLASS AM, CLASS AJ, CLASS B, CLASS C AND CLASS D
--------------------------------------------------------------------------------
▇▇▇▇▇▇▇ ▇▇▇▇▇ MORTGAGE TRUST 2006-C1
Issuing Entity
▇▇▇▇▇▇▇ ▇▇▇▇▇ MORTGAGE INVESTORS, INC.
Depositor
LASALLE BANK NATIONAL ASSOCIATION
▇▇▇▇▇▇▇ ▇▇▇▇▇ MORTGAGE LENDING, INC.
PNC BANK, NATIONAL ASSOCIATION
ARTESIA MORTGAGE CAPITAL CORPORATION
Mortgage Loan Sellers
MIDLAND LOAN SERVICES, INC.
▇▇▇▇▇ FARGO BANK, NATIONAL ASSOCIATION
Master Servicers
MIDLAND LOAN SERVICES, INC.
Special Servicer
U.S. BANK NATIONAL ASSOCIATION
Trustee
LASALLE BANK NATIONAL ASSOCIATION
Certificate Administrator
MAY 5, 2006
This material is being provided by ▇▇▇▇▇▇▇ Lynch, Pierce, ▇▇▇▇▇▇ & ▇▇▇▇▇
Incorporated, LaSalle Financial Services, Inc., PNC Capital Markets LLC,
▇▇▇▇▇▇▇, Sachs & Co. and ▇▇▇▇▇▇ ▇▇▇▇▇▇▇ & Co. Incorporated (collectively, the
"Underwriters") for your information. This material is not to be construed as an
offer to sell or the solicitation of any offer to buy any security in any
jurisdiction where such an offer or solicitation would be illegal. The
information contained in this material may pertain to securities that ultimately
are not sold. The information contained in this material may be based on
assumptions regarding market conditions and other matters as reflected herein.
The Underwriters make no representation regarding the likelihood that any of
such assumptions will coincide with actual market conditions or events. The
Underwriters and their affiliates, officers, directors, partners and employees,
including persons involved in the preparation or issuance of this material may,
from time to time, have long or short positions in, and buy and sell, the
securities mentioned herein or derivatives thereof (including options).
Information contained in this material is current as of the date appearing in
this material only. INFORMATION IN THIS MATERIAL REGARDING ANY ASSETS BACKING
ANY SECURITIES DISCUSSED HEREIN SUPERSEDES ALL PRIOR INFORMATION REGARDING SUCH
ASSETS. ANY INFORMATION IN THIS MATERIAL, WHETHER REGARDING THE ASSETS BACKING
ANY SECURITIES DISCUSSED HEREIN OR OTHERWISE, WILL BE SUPERSEDED BY THE
INFORMATION CONTAINED IN ANY PROSPECTUS DELIVERED TO YOU PRIOR TO THE TIME OF
SALE. The Underwriters are acting as underwriters and not acting as agents for
the issuer in connection with the proposed transaction.
▇▇▇▇▇▇▇ ▇▇▇▇▇ & CO. LASALLE FINANCIAL SERVICES, INC.
PNC CAPITAL MARKETS LLC ▇▇▇▇▇▇▇, SACHS & CO. ▇▇▇▇▇▇ ▇▇▇▇▇▇▇
ANNEX D
Pricing Information Annex
33
SCHEDULE I
MLCFC Commercial Mortgage Pass-Through Certificates, Series 2006-C1, Class A-1,
Class ▇-▇, ▇▇▇▇▇ ▇-▇, ▇▇▇▇▇ ▇-▇▇, Class A-SB, Class A-4, Class A-1A, Class AM,
Class AJ, Class B, Class C and Class D.
Amount of Certificates Class of Certificates
Underwriters to be Purchased to be Purchased
------------ ---------------------- ---------------------
▇▇▇▇▇▇▇ Lynch, Pierce, ▇▇▇▇▇▇ & ▇▇▇▇▇ Incorporated $ 57,845,219.4667 A-1
LaSalle Financial Services, Inc. 33,699,780.5332 A-1
PNC Capital Markets LLC ▇ ▇-▇
▇▇▇▇▇▇▇, ▇▇▇▇▇ & Co. 0 A-1
▇▇▇▇▇▇ ▇▇▇▇▇▇▇ & Co. Incorporated 0 A-1
▇▇▇▇▇▇▇ Lynch, Pierce, ▇▇▇▇▇▇ & ▇▇▇▇▇ Incorporated 240,393,977.5499 A-2
LaSalle Financial Services, Inc. 140,050,022.4500 A-2
PNC Capital Markets LLC ▇ ▇-▇
▇▇▇▇▇▇▇, ▇▇▇▇▇ & Co. 0 A-2
▇▇▇▇▇▇ ▇▇▇▇▇▇▇ & Co. Incorporated 0 A-2
▇▇▇▇▇▇▇ Lynch, Pierce, ▇▇▇▇▇▇ & ▇▇▇▇▇ Incorporated 84,671,575.8211 A-3
LaSalle Financial Services, Inc. 49,328,424.1788 A-3
PNC Capital Markets LLC ▇ ▇-▇
▇▇▇▇▇▇▇, ▇▇▇▇▇ & Co. 0 A-3
▇▇▇▇▇▇ ▇▇▇▇▇▇▇ & Co. Incorporated 0 A-3
▇▇▇▇▇▇▇ Lynch, Pierce, ▇▇▇▇▇▇ & ▇▇▇▇▇ Incorporated 15,796,935.7875 A-3b
LaSalle Financial Services, Inc. 9,203,064.2124 ▇-▇▇
▇▇▇ ▇▇▇▇▇▇▇ ▇▇▇▇▇▇▇ ▇▇▇ ▇ ▇-▇▇
▇▇▇▇▇▇▇, ▇▇▇▇▇ & Co. 0 ▇-▇▇
▇▇▇▇▇▇ ▇▇▇▇▇▇▇ & ▇▇. ▇▇▇▇▇▇▇▇▇▇▇▇ ▇ ▇-▇▇
▇▇▇▇▇▇▇ Lynch, Pierce, ▇▇▇▇▇▇ & ▇▇▇▇▇ Incorporated 71,970,839.4479 A-▇▇
▇▇▇▇▇▇▇ Financial Services, Inc. 41,929,160.5520 A-SB
PNC Capital Markets LLC 0 A-▇▇
▇▇▇▇▇▇▇, ▇▇▇▇▇ & Co. 0 A-▇▇
▇▇▇▇▇▇ ▇▇▇▇▇▇▇ & Co. Incorporated 0 A-▇▇
▇▇▇▇▇▇▇ Lynch, Pierce, ▇▇▇▇▇▇ & ▇▇▇▇▇ Incorporated 476,026,758.6535 A-4
LaSalle Financial Services, Inc. 277,326,241.3464 A-4
PNC Capital Markets LLC ▇ ▇-▇
▇▇▇▇▇▇▇, ▇▇▇▇▇ & Co. 0 A-4
▇▇▇▇▇▇ ▇▇▇▇▇▇▇ & Co. Incorporated 0 A-4
▇▇▇▇▇▇▇ Lynch, Pierce, ▇▇▇▇▇▇ & ▇▇▇▇▇ Incorporated 154,585,654.2295 A-1A
LaSalle Financial Services, Inc. 90,059,345.7704 A-1A
PNC Capital Markets LLC 0 A-1A
▇▇▇▇▇▇▇, Sachs & Co. 0 A-1A
▇▇▇▇▇▇ ▇▇▇▇▇▇▇ & Co. Incorporated 0 A-1A
▇▇▇▇▇▇▇ Lynch, Pierce, ▇▇▇▇▇▇ & ▇▇▇▇▇ Incorporated 157,326,738.5274 AM
LaSalle Financial Services, Inc. 91,656,261.4725 AM
PNC Capital Markets LLC 0 AM
▇▇▇▇▇▇▇, Sachs & Co. 0 AM
▇▇▇▇▇▇ ▇▇▇▇▇▇▇ & Co. Incorporated 0 AM
▇▇▇▇▇▇▇ Lynch, Pierce, ▇▇▇▇▇▇ & ▇▇▇▇▇ Incorporated 137,661,449.1042 ▇▇
▇▇▇▇▇▇▇ Financial Services, Inc. 80,199,550.8957 AJ
PNC Capital Markets LLC 0 ▇▇
▇▇▇▇▇▇▇, ▇▇▇▇▇ & Co. 0 ▇▇
▇▇▇▇▇▇ ▇▇▇▇▇▇▇ & Co. Incorporated 0 ▇▇
▇▇▇▇▇▇▇ Lynch, Pierce, ▇▇▇▇▇▇ & ▇▇▇▇▇ Incorporated 35,399,037.4675 B
LaSalle Financial Services, Inc. 20,622,962.5324 B
PNC Capital Markets LLC 0 B
▇▇▇▇▇▇▇, Sachs & Co. 0 B
▇▇▇▇▇▇ ▇▇▇▇▇▇▇ & Co. Incorporated 0 B
▇▇▇▇▇▇▇ Lynch, Pierce, ▇▇▇▇▇▇ & ▇▇▇▇▇ Incorporated 17,698,886.8563 C
LaSalle Financial Services, Inc. 10,311,113.1436 C
PNC Capital Markets LLC 0 C
▇▇▇▇▇▇▇, Sachs & Co. 0 C
▇▇▇▇▇▇ ▇▇▇▇▇▇▇ & Co. Incorporated 0 C
▇▇▇▇▇▇▇ Lynch, Pierce, ▇▇▇▇▇▇ & ▇▇▇▇▇ Incorporated 19,665,921.3006 D
LaSalle Financial Services, Inc. 11,457,078.6993 D
PNC Capital Markets LLC 0 D
Goldman, Sachs & Co. 0 D
Morgan ▇▇▇▇▇▇▇ & Co. Incorporated 0 D
SCHEDULE I (CONTINUED)
Class Initial Aggregate Approximate Initial Purchase Rating(3)
Designation Principal Amount of Class(1) Pass-Through Rate Price(2) S&P/Fitch
----------- ---------------------------- ------------------- --------- ---------
A-1 $ 91,545,000 5.528% 100.24879% AAA/AAA
A-2 380,444,000 5.799% 100.54977% AAA/AAA
A-3 134,000,000 5.844% 100.05183% ▇▇▇/▇▇▇
▇-▇▇ 25,000,000 5.844% 99.97204% AAA/AAA
A-SB 113,900,000 5.844% 100.14788% AAA/AAA
A-4 753,353,000 5.844% 99.79364% AAA/AAA
A-1A 244,645,000 5.844% 99.92160% AAA/AAA
AM 248,983,000 5.844% 99.48194% AAA/AAA
AJ 217,861,000 5.844% 99.26112% AAA/AAA
B 56,022,000 5.844% 98.89386% AA/AA
C 28,010,000 5.844% 98.74192% AA-/AA-
D 31,123,000 5.844% 98.16051% A/A
----------
(1) Subject to a variance of plus or minus 5.0%
(2) Expressed as a percentage of the aggregate stated or notional amount, as
applicable, of the relevant class of Certificates to be purchased. The
purchase price for each class of the Certificates shown is net accrued
interest. The purchase price to be paid will include accrued interest at
the initial Pass-Through Rate therefor on the aggregate stated or notional
amount, plus, if applicable, accrued interest on the actual principal
amount or notional amount thereof at the applicable Pass-Through Rate from
May 1, 2006 to but not including the Closing Date. The purchase price does
not reflect any underwriting discount.
(3) By each of Standard & Poor's Ratings Services, a division of The
▇▇▇▇▇▇-▇▇▇▇ Companies ("S&P"), and Fitch, Inc. ("Fitch").
