Exhibit 1.1
EXECUTION COPY
NELNET STUDENT LOAN TRUST 2006-1
$2,000,000,000*
(*USING AN EXCHANGE RATE OF $1.189 = (EURO)1.00)
STUDENT LOAN ASSET-BACKED NOTES
UNDERWRITING AGREEMENT
February 14, 2006
Banc of America Securities LLC
000 Xxxxx Xxxxx Xxxxxx
Xxxxxxxxx, XX 00000
Credit Suisse Securities (USA) LLC
Xxxxxx Xxxxxxx Xxxxxx
Xxx Xxxx, XX 00000
Deutsche Bank Securities Inc.
00 Xxxx Xxxxxx
Xxx Xxxx, XX 00000
as Representatives
Ladies and Gentlemen:
Nelnet Student Loan Funding, LLC, a Delaware limited liability company
("Nelnet Funding"), proposes to cause Nelnet Student Loan Trust 2006-1, a
Delaware statutory trust (the "Trust"), to sell to Banc of America Securities
LLC, Credit Suisse Securities (USA) LLC and Deutsche Bank Securities Inc.
(together, the "Representatives"), Banc of America Securities Limited, Credit
Suisse Securities (Europe) Limited, Deutsche Bank AG, London Branch, Barclays
Bank PLC, Societe Generale, London Branch and the other underwriters listed on
Schedule A attached hereto (each an "Underwriter", and collectively the
"Underwriters"), pursuant to the terms of this Underwriting Agreement (the
"Agreement"), $2,000,000,000 (using an exchange rate of $1.189 = (euro) 1.00)
aggregate principal amount of the Trust's Student Loan Asset-Backed Notes, Class
A-1, Class A-2, Class A-3, Class A-4, Class A-5, Class A-6 and Class B (the
"Notes") in the classes and initial principal amounts set forth on Schedule A
hereto. Zions First National Bank, a national banking association, will act as
eligible lender trustee on behalf of the Trust (the "Eligible Lender Trustee").
The Notes will be issued under an Indenture of Trust, dated as of February 1,
2006 (the "Indenture"), among the Trust, the Eligible Lender Trustee and Zions
First National Bank, a national banking association, as indenture trustee (the
"Indenture Trustee"). Upon issuance, the Notes will be secured by, among other
things, Financed Eligible Loans (as defined in the Indenture) pledged to the
Indenture Trustee and described in the Prospectus (as defined below). The
Financed Eligible Loans will be master serviced by National Education Loan
Network, Inc. ("NELN"), a Nevada Corporation, pursuant to a Master Servicing
Agreement, dated as of February 1, 2006 (the "Servicing Agreement"), among NELN,
as master servicer and administrator, Nelnet Funding and the Trust. The Financed
Eligible Loans will be subserviced by Nelnet, Inc. ("Nelnet"), a Nebraska
corporation, pursuant to a Nelnet, Inc. Subservicing Agreement, dated as of
February 1, 2006 (the "Subservicing Agreement"), between NELN and Nelnet.
This Agreement, the loan purchase agreement, dated as of February 1,
2006 between the Trust and Nelnet Funding (along with the related Loan Transfer
Addendum, the "Nelnet Funding Purchase Agreement"), the loan purchase agreement,
dated as of February 1, 2006 between Nelnet Funding and Nelnet Education Loan
Funding, Inc. ("NELF") (along with the related Loan Transfer Addendum, the "NELF
Purchase Agreement"), the loan purchase agreement, dated as of February 1, 2006
between NHELP-III, Inc. ("NHELP-III", together with Nelnet Funding and NELF, the
"Sellers") and Nelnet Funding (along with the related Loan Transfer Addendum,
the "NHELP-III Purchase Agreement" and, together with the Nelnet Funding
Purchase Agreement and the NELF Purchase Agreement, the "Purchase Agreements"),
the trust agreement, dated as of February 1, 2006, between Xxxxx Fargo Delaware
Trust Company, as Delaware trustee (the "Delaware Trustee"), and Nelnet Funding,
as initial certificateholder and depositor (the "Trust Agreement"), the
administration agreement, dated as of February 1, 2006, among the Trust, the
Delaware Trustee, the Indenture Trustee and NELN, as administrator (the
"Administration Agreement"), the eligible lender trust agreement, dated as of
February 1, 2006, between Zions First National Bank (in such capacity the
"Eligible Lender Trustee", and together with the Indenture Trustee, the
"Trustee") and Nelnet Funding (the "Nelnet Funding Eligible Lender Agreement"),
the Eligible Lender Trust Agreement, dated as of February 1, 2006, between the
Eligible Lender Trustee and the Trust (the "Trust Eligible Lender Agreement",
and together with the Nelnet Funding Eligible Lender Agreement, the "Eligible
Lender Agreements"), the custodian agreement, dated February 1, 2006, among the
Trust, the Indenture Trustee, the Eligible Lender Trustee and Nelnet, as
custodian (the "Custodian Agreement"), the investment agreement, to be dated on
or about February 21, 2006, between the Trustee and an investment provider (the
"Investment Agreement"), the indemnity agreement, dated as of February 14, 2006,
among Nelnet and the Representatives (the "Indemnity Agreement"), the
Remarketing Agreement, dated as of February 1, 2006 among the Trust, the
Administrator, and the Representatives, as Remarketing Agents (the "Remarketing
Agreement"), the ISDA Master Agreement and related schedule and confirmation
(the "Currency Swap Agreement"), between the Trust and Deutsche Bank AG, acting
through its New York Branch (the "Currency Swap Counterparty"), the Servicing
Agreement, the Subservicing Agreement and the Indenture shall collectively
hereinafter be referred to as the "Basic Documents."
Capitalized terms used herein without definition shall have the meanings
ascribed to them in the Indenture or the Prospectus.
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Nelnet Funding proposes to cause the Trust, upon the terms and
conditions set forth herein, to sell to each of the Underwriters on the Closing
Date (as hereinafter defined) the aggregate principal amount of each Class of
Notes set forth next to the name of each Underwriter on Schedule A at the rates
and maturities listed on Schedule B hereto.
Nelnet Funding wishes to confirm as follows this Agreement with the
Underwriters in connection with the purchase and resale of the Notes.
1. AGREEMENTS TO SELL, PURCHASE AND RESELL. (a) On the Closing Date,
Nelnet Funding hereby agrees, subject to all the terms and conditions set forth
herein, to cause the Trust to sell to each of the Underwriters and, upon the
basis of the representations, warranties and agreements of Nelnet Funding herein
contained and subject to all the terms and conditions set forth herein, on the
Closing Date each of the Underwriters severally and not jointly agrees to
purchase from the Trust, such principal amount of each Class of the Notes to be
sold on the Closing Date at such respective purchase prices as are set forth
next to the name of each Underwriter on Schedule A hereto.
(b) It is understood that the Underwriters propose to offer the
Notes for sale to the public (which may include selected dealers) as set forth
in the Prospectus.
2. DELIVERY OF THE NOTES AND PAYMENT THEREFOR. Delivery to the
Underwriters of and payment for the Notes shall be made at the offices of Xxxxx
Xxxx LLP in Denver, Colorado, at 11:00 a.m., MST, on February 21, 2006 (the
"Closing Date"). The place of such closing and the Closing Date may be varied by
agreement between the Representatives and Nelnet Funding.
On the Closing Date, the Notes will be delivered to the Underwriters
against payment of the purchase price therefor to the Trust in Federal Funds, by
wire transfer to an account at a bank acceptable to the Representatives, or such
other form of payment as to which the parties may agree. Unless otherwise agreed
to by Nelnet Funding and the Representatives, each Class of Notes will be
evidenced by a single global security in definitive form deposited with the
Trustee as custodian for DTC or, with respect to the Class A-6 Notes, with HSBC
Bank plc, as common depositary for Euroclear and Clearstream, and/or by
additional definitive securities, and will be registered, in the case of the
global Classes of Notes, in the name of Cede & Co. as nominee of The Depository
Trust Company ("DTC"), and, with respect to the Class A-6 Notes, in the name of
HSBC Issuer Services Common Depositary Nominee (UK) Limited, as nominee of
Euroclear and Clearstream, and in the other cases, in such names and in such
denominations as the Underwriters shall request prior to 1:00 p.m., New York
City time, no later than the business day preceding the Closing Date. The Notes
to be delivered to the Underwriters shall be made available to the Underwriters
in Denver, Colorado, for inspection and packaging not later than 9:30 a.m.,
Denver time, on the business day immediately preceding the Closing Date.
3. REPRESENTATIONS AND WARRANTIES OF NELNET FUNDING. Nelnet Funding
represents and warrants to each of the Underwriters that:
(a) A registration statement on Form S-3 (No. 333-128658),
including a prospectus and such amendments thereto as may have been
required to the date hereof, relating to the Notes and the offering
thereof from time to time in accordance with Rule 415 under the
Securities Act of 1933, as amended (the "Act"), has been filed with the
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Securities and Exchange Commission (the "SEC" or the "Commission") and
such registration statement, as amended, has become effective; such
registration statement, as amended, and the prospectus relating to the
sale of the Notes offered thereby constituting a part thereof, as from
time to time amended or supplemented (including the base prospectus, any
prospectus supplement filed with the Commission pursuant to Rule 424(b)
under the Act, the information deemed to be a part thereof pursuant to
Rule 430A(b) under the Act, and the information incorporated by
reference therein) are respectively referred to herein as the
"Registration Statement" and the "Prospectus" respectively; and the
conditions to the use of a registration statement on Form S-3 under the
Act, as set forth in the General Instructions to Form S-3, and the
conditions of Rule 415 under the Act, have been satisfied with respect
to the Registration Statement.
(b) On the effective date of the Registration Statement, the
Registration Statement and the Prospectus conformed in all respects to
the requirements of the Act, the rules and regulations of the SEC (the
"Rules and Regulations") and the Trust Indenture Act of 1939, as
amended, and the rules and regulations thereunder (the "Trust Indenture
Act"), and, except with respect to information omitted pursuant to Rule
430A of the Act, did not include any untrue statement of a material fact
or, in the case of the Registration Statement, omit to state any
material fact required to be stated therein or necessary to make the
statements therein not misleading and, in the case of the Prospectus,
omit to state any material fact required to be stated therein or
necessary to make the statements therein, in the light of the
circumstances under which they were made, not misleading, and on the
date of this Agreement, at the "time of sale" (within the meaning of
Rule 159 under the Act, the "Time of Sale") for the first sale of the
Notes by the Underwriters and on the Closing Date, the Registration
Statement, the Disclosure Package (as defined below) and the Prospectus
will conform in all respects to the requirements of the Act, the Rules
and Regulations and the Trust Indenture Act, and none of such documents
included or will include any untrue statement of a material fact or omit
to state any material fact required to be stated therein or necessary to
make the statements therein not misleading; provided, however, that the
foregoing does not apply to statements in or omissions from the
Registration Statement, the Prospectus or the Disclosure Package, as
applicable, based upon written information furnished to Nelnet Funding
by the Underwriters, specifically for use therein. As used in this
Agreement, the term "Disclosure Package" means, collectively, the
initial free writing prospectus dated February 7, 2006 relating to the
Notes (the "Initial FWP") and the Term Sheet dated February 13, 2006
(the "Disclosure Supplement").
(c) The Commission has not issued and, to the best knowledge of
Nelnet Funding, is not threatening to issue any order preventing or
suspending the use of the Registration Statement.
(d) As of the Closing Date, each consent, approval, authorization
or order of, or filing with, any court or governmental agency or body
which is required to be obtained or made by Nelnet Funding or its
affiliates for the consummation of the transactions contemplated by this
Agreement shall have been obtained, except as otherwise provided in the
Basic Documents.
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(e) The Indenture has been duly and validly authorized by Nelnet
Funding and, upon its execution and delivery by the Trust and assuming
due authorization, execution and delivery by the Trustee, will be a
valid and binding agreement of the Trust, enforceable in accordance with
its terms, except as enforcement thereof may be limited by bankruptcy,
insolvency or other similar laws affecting creditors' rights generally
and the Indenture will conform in all material respects to the
description thereof in the Prospectus and the Disclosure Package. The
Indenture has been duly qualified under the Trust Indenture Act with
respect to the Notes.
(f) The Notes have been duly authorized by the Trust and the
Notes to be issued on the Closing Date, when executed by the Trust and
authenticated by the Trustee in accordance with the Indenture, and
delivered to the Underwriters against payment therefor in accordance
with the terms hereof, will have been validly issued and delivered, and
will constitute valid and binding obligations of the Trust entitled to
the benefits of the Indenture and enforceable in accordance with their
terms, except as enforcement thereof may be limited by bankruptcy,
insolvency, moratorium, fraudulent conveyance or other similar laws
relating to or affecting creditors' rights generally and court decisions
with respect thereto, and the Notes will conform in all material
respects to the description thereof in the Prospectus and the Disclosure
Package.
(g) Nelnet Funding is a limited liability company duly organized,
validly existing and in good standing under the laws of the State of
Delaware with full power and authority to own, lease and operate its
properties and to conduct its business as described in the Prospectus
and as conducted on the date hereof, and is duly registered and
qualified to conduct its business and is in good standing in each
jurisdiction or place where the nature of its properties or the conduct
of its business requires such registration or qualification, except
where the failure so to register or qualify does not have a material
adverse effect on the condition (financial or other), business,
prospects, properties, net worth or results of operations of Nelnet
Funding.
(h) Other than as contemplated by this Agreement or as disclosed
in the Prospectus and the Disclosure Package, there is no broker, finder
or other party that is entitled to receive from Nelnet Funding or any of
its affiliates any brokerage or finder's fee or other fee or commission
as a result of any of the transactions contemplated by this Agreement.
(i) There are no legal or governmental proceedings pending or
threatened or, to the knowledge of Nelnet Funding contemplated, against
Nelnet Funding, or to which Nelnet Funding or any of its properties is
subject, that are not disclosed in the Prospectus and the Disclosure
Package and which, if adversely decided, would individually or in the
aggregate have a material adverse effect on the condition (financial or
other), business, properties or results of operations of Nelnet Funding,
or would materially and adversely affect the ability of Nelnet Funding,
or the Trust to perform its obligations under this Agreement and the
other Basic Documents or otherwise materially affect the issuance of the
Notes or the consummation of the transactions contemplated hereby or by
the Basic Documents.
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(j) Neither the offer, sale or delivery of the Notes by the Trust
nor the execution, delivery or performance of this Agreement or the
Basic Documents by Nelnet Funding or the Trust, nor the consummation by
Nelnet Funding or the Trust of the transactions contemplated hereby or
thereby (i) requires or will require any consent, approval,
authorization or other order of, or registration or filing with, any
court, regulatory body, administrative agency or other governmental
body, agency or official (except for compliance with the securities or
Blue Sky laws of various jurisdictions, the qualification of the
Indenture under the Trust Indenture Act and such other consents,
approvals or authorizations as shall have been obtained prior to the
Closing Date) or conflicts or will conflict with or constitutes or will
constitute a breach of, or a default under, the organizational documents
of Nelnet Funding or the Trust or (ii) conflicts or will conflict with
or constitutes or will constitute a breach of, or a default under, in
any material respect, any agreement, indenture, lease or other
instrument to which Nelnet Funding or the Trust is a party or by which
Nelnet Funding or the Trust or any of its respective properties may be
bound, or violates or will violate in any material respect any statute,
law, regulation or filing or judgment, injunction, order or decree
applicable to Nelnet Funding or the Trust or any of its respective
properties, or will result in the creation or imposition of any lien,
charge or encumbrance upon any property or assets of Nelnet Funding or
the Trust pursuant to the terms of any agreement or instrument to which
it is a party or by which it may be bound or to which any of its
properties is subject other than as contemplated by the Basic Documents.
(k) Nelnet Funding has all requisite power and authority to
execute, deliver and perform its obligations under this Agreement and
the other Basic Documents to which it is a party; the execution and
delivery of, and the performance by Nelnet Funding of its obligations
under, this Agreement and the other Basic Documents to which it is a
party have been duly and validly authorized by Nelnet Funding and this
Agreement and the other Basic Documents have been duly executed and
delivered by Nelnet Funding and constitute the valid and legally binding
agreements of Nelnet Funding, enforceable against Nelnet Funding in
accordance with their respective terms, except as the enforcement hereof
and thereof may be limited by bankruptcy, insolvency, moratorium,
fraudulent conveyance or other similar laws relating to or affecting
creditors' rights generally and court decisions with respect thereto and
subject to the applicability of general principles of equity, and except
as rights to indemnity and contribution hereunder and thereunder may be
limited by Federal or state securities laws or principles of public
policy.
(l) The statements set forth in each of the Initial FWP, the
Disclosure Supplement and the Prospectus under the caption "Description
of the Notes" insofar as they purport to constitute a summary of the
terms of the Notes, are accurate, complete and fair.
(m) Nelnet Funding's assignment and delivery of Financed Eligible
Loans to the order of the Trustee on behalf of the Trust pursuant to the
Purchase Agreements will vest in the Trustee on behalf of the Trust all
of Nelnet Funding's right, title and interest therein, subject to no
prior lien, mortgage, security interest, pledge, adverse claim, charge
or other encumbrance.
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(n) The Trust's assignment of the Financed Eligible Loans to the
Trustee pursuant to the Indenture will vest in the Trustee, for the
benefit of the Noteholders, a first priority perfected security interest
therein, subject to no prior lien, mortgage, security interest, pledge,
adverse claim, charge or other encumbrance.
(o) The Trust is not, nor as a result of the issuance and sale of
the Notes as contemplated hereunder will it become, subject to
registration as an "investment company" under the Investment Company Act
of 1940, as amended.
(p) The representations and warranties made by Nelnet Funding in
any Basic Document to which Nelnet Funding is a party and made in any
Officer's Certificate of Nelnet Funding or the Trust will be true and
correct at the time made and on and as of the Closing Date.
(q) Since the date of the Prospectus, no material adverse change
or any development involving a prospective material adverse change in,
or affecting particularly the business or properties of, Nelnet Funding
has occurred.
(r) The Trust is not, and will not be on the Closing Date, an
"ineligible issuer" (within the meaning of Rule 405 under the Act).
(s) The Trust filed with the Commission pursuant to Rule 433(d)
under the Act (i) the Initial FWP on February 7, 2006 and (ii) the
Disclosure Supplement on February 13, 2006.
4. AGREEMENTS OF NELNET FUNDING. Nelnet Funding agrees with each of the
Underwriters as follows:
(a) Nelnet Funding will prepare a supplement to the Prospectus
setting forth the amount of the Notes covered thereby and the terms
thereof not otherwise specified in the Prospectus, the price at which
the Notes are to be purchased by the Underwriters, either the initial
public offering price or the method by which the price at which the
Notes are to be sold will be determined, the selling concessions and
reallowances, if any, and such other information as the Underwriters and
Nelnet Funding deem appropriate in connection with the offering of the
Notes, and Nelnet Funding will timely file such supplement to the
Prospectus with the SEC pursuant to Rule 424(b) under the Act, but
Nelnet Funding will not file any amendments to the Registration
Statement as in effect with respect to the Notes or any amendments or
supplements to the Prospectus, or any Free Writing Prospectus (as
defined in Rule 405 under the Act) to the extent required by Rule 433(d)
under the Act, unless it shall first have delivered copies of such
amendments, supplements or Free Writing Prospectus to the Underwriters,
with reasonable opportunity to comment on such proposed amendment or
supplement or if the Underwriters or their counsel shall have reasonably
objected thereto promptly after receipt thereof; Nelnet Funding will
immediately advise the Underwriters or the Underwriters' counsel (i)
when notice is received from the SEC that any post-effective amendment
to the Registration Statement has become or will become effective and
(ii) of any order or communication suspending or preventing, or
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threatening to suspend or prevent, the offer and sale of the Notes or of
any proceedings or examinations that may lead to such an order or
communication, whether by or of the SEC or any authority administering
any state securities or Blue Sky law, as soon as Nelnet Funding is
advised thereof, and will use its best efforts to prevent the issuance
of any such order or communication and to obtain as soon as possible its
lifting, if issued.
(b) If, at any time when the Prospectus relating to the Notes is
required to be delivered under the Act, any event occurs as a result of
which the Prospectus as then amended or supplemented would include an
untrue statement of a material fact or omit to state any material fact
required to be stated therein or necessary to make the statements
therein, in the light of the circumstances under which they were made,
not misleading, or if it is necessary at any time to amend or supplement
the Prospectus to comply with the Act or the Rules and Regulations,
Nelnet Funding promptly will notify each of the Representatives of such
event and will promptly prepare and file with the SEC, at its own
expense, an amendment or supplement to such Prospectus that will correct
such statement or omission or an amendment that will effect such
compliance. Neither the Representatives' consent to, nor the
Representatives' delivery of, any such amendment or supplement shall
constitute a waiver of any of the conditions set forth in Section 7
hereof.
(c) Nelnet Funding will immediately inform the Representatives
(i) of the receipt by Nelnet Funding of any communication from the SEC
or any state securities authority concerning the offering or sale of the
Notes and (ii) of any threatened lawsuit or proceeding or of the
commencement of any lawsuit or proceeding to which Nelnet Funding is a
party relating to the offering or sale of the Notes.
(d) Nelnet Funding will furnish to the Representatives, without
charge, copies of the Registration Statement (including all documents
and exhibits thereto or incorporated by reference therein), the
Prospectus, the Disclosure Package, and all amendments and supplements
to such documents relating to the Notes, in each case as soon as
reasonably available in such quantities as the Representatives may
reasonably request.
(e) No amendment or supplement will be made to the Registration
Statement, Disclosure Package or Prospectus (i) prior to having
furnished the Underwriters with a copy of the proposed form of the
amendment or supplement and giving the Underwriters a reasonable
opportunity to review the same or (ii) in a manner to which the
Underwriters or their counsel shall reasonably object.
(f) Nelnet Funding will cooperate with the Underwriters and with
their counsel in connection with the qualification of, or procurement of
exemptions with respect to, the Notes for offering and sale by the
Underwriters and by dealers under the securities or Blue Sky laws of
such jurisdictions as the Underwriters may designate and will file such
consents to service of process or other documents necessary or
appropriate in order to effect such qualification or exemptions;
provided that in no event shall Nelnet Funding be obligated to qualify
to do business in any jurisdiction where it is not now so qualified or
to take any action which would subject it to service of process in
suits, other than those arising out of the offering or sale of the
Notes, in any jurisdiction where it is not now so subject.
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(g) Nelnet Funding consents to the use, in accordance with the
securities or Blue Sky laws of such jurisdictions in which the Notes are
offered by the Underwriters and by dealers, of the Prospectus furnished
by Nelnet Funding.
(h) To the extent, if any, that the rating or ratings provided
with respect to the Notes by the rating agency or agencies that
initially rate the Notes is conditional upon the furnishing of documents
or the taking of any other actions by Nelnet Funding, Nelnet Funding
shall cause to be furnished such documents and such other actions to be
taken.
(i) So long as any of the Notes are outstanding, Nelnet Funding
will furnish to the Underwriters (i) as soon as available, a copy of
each document relating to the Notes required to be filed with the SEC
pursuant to the Securities Exchange Act of 1934, as amended (the
"Exchange Act"), or any order of the SEC thereunder, and (ii) such other
information concerning Nelnet Funding or the Trust as the Underwriters
may request from time to time.
(j) If this Agreement shall terminate or shall be terminated
after execution and delivery pursuant to any provisions hereof
(otherwise than by notice given by the Representatives terminating this
Agreement pursuant to Section 9 or Section 10 hereof) or if this
Agreement shall be terminated by the Representatives because of any
failure or refusal on the part of Nelnet Funding to comply with the
terms or fulfill any of the conditions of this Agreement, Nelnet Funding
agrees to reimburse the Underwriters for all out-of-pocket expenses
(including fees and expenses of their counsel) reasonably incurred by
each of them in connection herewith, but without any further obligation
on the part of Nelnet Funding for loss of profits or otherwise (except
for the indemnity and contribution provisions of Section 6 hereof).
(k) The net proceeds from the sale of the Notes hereunder will be
applied substantially in accordance with the description set forth in
the Prospectus and the Disclosure Package.
(1) Except as stated in this Agreement, the Disclosure Package
and in the Prospectus, Nelnet Funding has not taken, nor will it take,
directly or indirectly, any action designed to or that might reasonably
be expected to cause or result in stabilization or manipulation of the
price of the Notes to facilitate the sale or resale of the Notes.
(m) For a period from the date of this Agreement until the
retirement of the Notes, Nelnet Funding will deliver to you the annual
statements of compliance and the annual independent certified public
accountants' reports furnished to the Trustee pursuant to the Servicing
Agreement as soon as such statements and reports are furnished to the
Trustee.
(n) On or before the Closing Date, Nelnet Funding shall mark its
accounting and other records, if any, relating to the Financed Eligible
Loans and shall cause NELN and each Seller to mark their respective
computer records relating to the Financed Eligible Loans to show the
absolute ownership by the Trustee, as eligible lender of, and the
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interest of the Trust in, the Financed Eligible Loans, and Nelnet
Funding shall not take, or shall permit any other person to take, any
action inconsistent with the ownership of, and the interest of the Trust
in, the Financed Eligible Loans, other than as permitted by the Basic
Documents.
(o) For the period beginning on the date of this Agreement and
ending 90 days hereafter, none of Nelnet Funding and any entity
affiliated, directly or indirectly, with Nelnet Funding will, without
the prior written notice to the Underwriters, offer to sell or sell
notes (other than the Notes) collateralized by FFELP Loans; provided,
however, that this shall not be construed to prevent the sale of FFELP
Loans by Nelnet Funding.
(p) If, at the time the Registration Statement became effective,
any information shall have been omitted therefrom in reliance upon Rule
430A under the Act, then, immediately following the execution of this
Agreement, Nelnet Funding will prepare, and file or transmit for filing
with the Commission in accordance with such Rule 430A and Rule 424(b)
under the Act, copies of an amended Prospectus containing all
information so omitted.
(q) As soon as practicable, but not later than 16 months after
the date of this Agreement, Nelnet Funding will make generally available
to its securityholders an earnings statement covering a period of at
least 12 months beginning after the later of (i) the effective date of
the Registration Statement, (ii) the effective date of the most recent
post-effective amendment to the Registration Statement to become
effective prior to the date of this Agreement and (iii) the date of the
Nelnet Funding's most recent Annual Report or Form 10-K filed with the
Commission prior to the date of this Agreement, which will satisfy the
provisions of Section 11(a) of the Act.
(r) Nelnet Funding will cooperate with the Underwriters in
listing and maintaining the Class A Notes on the Irish Stock Exchange.
5. REPRESENTATIONS AND WARRANTIES OF THE UNDERWRITERS. Each of the
Underwriters, severally and not jointly, hereby represents and warrants to and
agrees with Nelnet Funding, severally and not jointly, that:
(A) it has only communicated or caused to be communicated and will only
communicate or cause to be communicated any invitation or inducement to engage
in investment activity (within the meaning of section 21 of the Financial
Services Markets Act 2000 (the "FSMA")), received by it in connection with the
issue or sale of the Notes in circumstances in which section 21(1) of the FSMA
does not apply to the Trust;
(B) it has complied, and will comply, in all material respects, with all
applicable provisions of the FSMA with respect to anything done by it in
relation to the Notes in, from or otherwise involving the United Kingdom;
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(C) other than the Prospectus and the Disclosure Package, it has not,
without the prior written approval of Nelnet Funding, conveyed or delivered any
written material of any kind containing any "issuer information" as defined in
Rule 433(h)(2) under the Act to any potential investor in the Notes that would
constitute (i) a prospectus satisfying the requirements of Rule 430B under the
Act, (ii) a Free Writing Prospectus, or (iii) any "ABS informational and
computational material" as defined in Item 1101(a) of Reg AB under the Act;
provided, however that an Underwriter may have conveyed to one or more potential
investors written material containing only (i) information permitted in Rule 134
under the Act and previously included in the Disclosure Package, (ii) a column
or other entry showing the status of the subscriptions for each Class of the
Notes, (iii) expected pricing parameters of the Notes, (iv) weighted average
lives of any Class of the Notes, and (v) expected maturities of any Class of the
Notes, in the case of clauses (i) through (v) as such information is posted on a
Bloomberg screen, and in the case of clauses (ii) through (v) such written
material shall not contain information that would require the Trust to file such
written material as a Free Writing Prospectus pursuant to Rule 433 under the
Act;
(D) it did not convey the Initial FWP to any potential investor prior to
February 7, 2006, or convey the Disclosure Supplement to any potential investor
prior to February 13, 2006; and
(E) it has conveyed the Disclosure Package to each investor to which it
has sold the Notes in paper form, by facsimile or electronically in Adobe
Acrobat format reasonably promptly after receipt by such Underwriter and prior
to the time it entered into each contract for sale of the Notes.
6. INDEMNIFICATION AND CONTRIBUTION.
(a) Nelnet Funding agrees to indemnify and hold harmless each of
the Underwriters and each person, if any, who controls an Underwriter
within the meaning of Section 15 of the Act or Section 20 of the
Exchange Act, from and against any and all losses, claims, damages,
liabilities and expenses (or actions in respect thereof) arising out of
or based upon any untrue statement or alleged untrue statement of a
material fact contained in the Registration Statement, the Prospectus,
the Disclosure Package, the written communications constituting an
electronic road show within the meaning of Rule 433(h) under the Act
(the "Road Show Material"), or in any amendment or supplement thereto,
or any preliminary prospectus, or in the case of the Registration
Statement or in any amendment or supplement thereto, arising out of or
based upon 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, and in the case of the Prospectus, the
Disclosure Package and the Road Show Material or in any amendment or
supplement thereto, arising out of or based upon 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, in light of
the circumstances under which they were made, and will reimburse each
Underwriter for any legal or other expenses reasonably incurred by such
Underwriter in connection with investigating or defending any such loss,
claim, damage, liability, or action as such expenses are incurred,
except insofar as such losses, claims, damages, liabilities or expenses
arise out of or are based upon any untrue statement or omission or
alleged untrue statement or omission which has been made therein or
omitted therefrom in reliance upon and in conformity with the
information relating to an Underwriter furnished in writing to Nelnet
11
Funding by such Underwriter through the Representatives expressly for
use therein, it being understood that the only such information
furnished by any Underwriter consists of the information described as
such in Section 11 of this Agreement. The foregoing indemnity agreement
shall be in addition to any liability which Nelnet Funding may otherwise
have.
(b) If any action, suit or proceeding shall be brought against an
Underwriter or any person controlling an Underwriter in respect of which
indemnity may be sought against Nelnet Funding, such Underwriter or such
controlling person shall promptly notify the parties against whom
indemnification is being sought (the "indemnifying parties"), but the
omission so to notify the indemnifying party will not relieve it from
any liability which it may have to any indemnified party under Sections
6(a) and 6(c) hereof, except to the extent that the indemnifying party
is materially prejudiced by such omission, and in no event shall the
omission so to notify relieve Nelnet Funding from any liability which it
may otherwise have. In case any such action is brought against any
indemnified party and it notifies the indemnifying party of the
commencement thereof, the indemnifying party will be entitled to
participate therein and, to the extent that it may wish, jointly with
any other indemnifying party similarly notified, to assume the defense
thereof, with counsel satisfactory to such indemnified party (who shall
not, except with the consent of the indemnified party, be counsel to the
indemnifying party). The applicable Underwriter or any such controlling
person shall have the right to employ separate counsel in any such
action, suit or proceeding and to participate in the defense thereof,
but the fees and expenses of such counsel shall be at the expense of
such Underwriter or such controlling person unless (i) the indemnifying
parties have agreed in writing to pay such fees and expenses, (ii) the
indemnifying parties have failed to assume the defense and employ
counsel, or (iii) the named parties to any such action, suit or
proceeding (including any impleaded parties) include both the
Underwriter or such controlling person and the indemnifying parties and
the Underwriter or such controlling person shall have been advised by
its counsel that there may be one or more legal defenses available to it
which are different from or additional to or in conflict with those
available to the indemnifying parties and in the reasonable judgment of
such counsel it is advisable for the Underwriter or such controlling
person to employ separate counsel (in which case the indemnifying party
shall not have the right to assume the defense of such action, suit or
proceeding on behalf of the Underwriter or such controlling person). It
is understood, however, that the indemnifying parties shall, in
connection with any one such action, suit or proceeding or separate but
substantially similar or related actions, suits or proceedings in the
same jurisdiction arising out of the same general allegations or
circumstances, be liable for the reasonable fees and expenses of only
one separate firm of attorneys (in addition to any local counsel) at any
time for each Underwriter and controlling persons not having actual or
potential differing interests with such Underwriter or among themselves,
which firm shall be designated in writing by such Underwriter, and that
all such fees and expenses shall be reimbursed on a monthly basis as
provided in paragraph (a) hereof. An indemnifying party will not,
without the prior written consent of the indemnified party, settle or
compromise or consent to the entry of any judgment with respect to any
pending or threatened claim, action, suit or proceeding in respect of
which indemnification or contribution may be sought hereunder (whether
12
or not the indemnified parties are actual or potential parties to such
claim or action) unless such settlement, compromise or consent (i)
includes an unconditional release of each indemnified party from all
liability arising out of such claim, action, suit or proceeding and (ii)
does not include a statement as to, or an admission of fault,
culpability or a failure to act by or on behalf of an indemnified party.
(c) Each Underwriter, severally and not jointly, agrees to
indemnify and hold harmless Nelnet Funding and its directors and
officers, and any person who controls Nelnet Funding within the meaning
of Section 15 of the Act or Section 20 of the Exchange Act, to the same
extent as the indemnity from Nelnet Funding to the Underwriters set
forth in paragraph (a) hereof, but only (i) with respect to information
furnished in writing by such Underwriter to Nelnet Funding or the Trust
through the Representatives expressly for use in the Registration
Statement, the Prospectus, or any amendment or supplement thereto, the
Road Show Materials or the Disclosure Supplement, it being understood
that the only such information furnished by any Underwriter consists of
the information described as such in Section 11 of this Agreement and
(ii) arising out of or based upon any untrue statement or alleged untrue
statement of a material fact contained in any Free Writing Prospectus
not constituting an "issuer free writing prospectus" (as defined in Rule
433 (h)(1) under the Act) and used by such indemnifying Underwriter, or
arising out of or based upon any omission or alleged omission to state
therein a material fact necessary in order to make the statements
therein not misleading (except to the extent such untrue statement or
omission or alleged untrue statement or omission in such Free Writing
Prospectus, the Road Show Materials or the Disclosure Supplement (x) is
based upon or results from errors, mistakes or omissions in information
provided by Nelnet Funding to the Underwriters or (y) is contained in
the Prospectus, the Registration Statement or the Disclosure Package).
If any action, suit or proceeding shall be brought against Nelnet
Funding, any of its directors or officers, or any such controlling
person based on the Registration Statement, the Prospectus, the
Disclosure Package, the Road Show Material or any amendment or
supplement thereto, or any related preliminary prospectus therein and in
respect of which indemnity may be sought against an Underwriter pursuant
to this paragraph (c), such Underwriter shall have the rights and duties
given to Nelnet Funding by paragraph (b) above (except that if Nelnet
Funding shall have assumed the defense thereof the Underwriter shall
have the option to assume such defense but shall not be required to do
so, but may employ separate counsel therein and participate in the
defense thereof, but the fees and expenses of such counsel shall be at
such Underwriter's expense), and Nelnet Funding, its directors and
officers, and any such controlling person shall have the rights and
duties given to the Underwriters by paragraph (b) above. The foregoing
indemnity agreement shall be in addition to any liability which the
Underwriters may otherwise have.
(d) If the indemnification provided for in this Section 6 is
unavailable to or insufficient to hold harmless an indemnified party
under paragraphs (a) or (c) hereof in respect of any losses, claims,
damages, liabilities or expenses referred to therein, then an
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, liabilities or expenses (i)
in such proportion as is appropriate to reflect the relative benefits
received by Nelnet Funding on the one hand and the applicable
Underwriter on the other hand from the offering of the Notes, or (ii) if
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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 Nelnet Funding on the one hand and the applicable
Underwriter on the other in connection with the statements or omissions
that resulted in such losses, claims, damages, liabilities or expenses,
as well as any other relevant equitable considerations. The relative
benefits received by Nelnet Funding on the one hand and an Underwriter
on the other shall be deemed to be in the same proportion as the total
net proceeds from the offering of the Notes (before deducting expenses)
received by the Trust bear to the total underwriting discounts and
commissions received by such Underwriter. The relative fault of Nelnet
Funding on the one hand and the Underwriters on the other hand 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
Nelnet Funding on the one hand or by an Underwriter on the other hand
and the parties' relative intent, knowledge, access to information and
opportunity to correct or prevent such statement or omission.
(e) Nelnet Funding and the Underwriters agree that it would not
be just and equitable if contribution pursuant to this Section 6 were
determined by a pro rata allocation or by any other method of allocation
that does not take account of the equitable considerations referred to
in paragraph (d) above. The amount paid or payable by an indemnified
party as a result of the losses, claims, damages, liabilities and
expenses referred to in paragraph (d) above shall be deemed to include,
subject to the limitations set forth above, any legal or other expenses
reasonably incurred by such indemnified party in connection with
investigating any claim or defending any such action, suit or
proceeding. Notwithstanding the provisions of this Section 6, no
Underwriter shall be required to contribute any amount in excess of the
amount by which the total underwriting discounts and commissions
received by such Underwriter with respect to the Notes underwritten by
such Underwriter exceed the sum of the amount of any damages which such
Underwriter has otherwise been required to pay by reason of such untrue
or alleged untrue statement or omission or alleged omission and the
amount of any damages such Underwriter has been required to pay under
this Agreement. No person guilty of fraudulent misrepresentation (within
the meaning of Section 11(f) of the Act) shall be entitled to
contribution from any person who was not guilty of such fraudulent
misrepresentation. The Underwriters' obligations in this paragraph (e)
to contribute are several in proportion to their respective underwriting
obligations.
(f) Any losses, claims, damages, liabilities or expenses for
which an indemnified party is entitled to indemnification or
contribution under this Section 6 shall be paid by the indemnifying
party to the indemnified party as such losses, claims, damages,
liabilities or expenses are incurred. The indemnity and contribution
agreements contained in this Section 6 and the representations and
warranties of Nelnet Funding and the Underwriters set forth in this
Agreement shall remain operative and in full force and effect,
regardless of (i) any investigation made by or on behalf of the
Underwriters, Nelnet Funding or any person controlling any of them or
their respective directors or officers, (ii) acceptance of any Notes and
payment therefor hereunder, and (iii) any termination of this Agreement.
A successor to the Underwriters, Nelnet Funding or any person
controlling any of them or their respective directors or officers, shall
be entitled to the benefits of the indemnity, contribution and
reimbursement agreements contained in this Section 6.
14
7. CONDITIONS OF THE UNDERWRITERS' OBLIGATIONS. The several obligations
of the Underwriters to purchase the Notes hereunder on the Closing Date are
subject to the following conditions precedent:
(a) All actions required to be taken and all filings required to
be made by Nelnet Funding under the Act prior to the sale of the Notes
shall have been duly taken or made. At and prior to the Closing Date, no
stop order suspending the effectiveness of the Registration Statement
shall have been issued and no proceedings for that purpose shall have
been instituted or, to the knowledge of Nelnet Funding or the
Underwriters, shall be contemplated by the Commission.
(b) Subsequent to the effective date of this Agreement, there
shall not have occurred (i) any change, or any development or event
involving a prospective change, in or affecting the condition (financial
or other), business, properties, net worth, or results of operations of
Nelnet Funding, NELN, the Sellers or Nelnet (A) not contemplated by the
Registration Statement, or (B) relating to the matters described in the
Prospectus and/or the Initial FWP under the heading "The Student Loan
Operations of Nelnet Student Loan Trust 2006-1 - The subservicers -
Recent Developments", which in the opinion of the Representatives, would
materially adversely affect the market for the Notes, (ii) the
withdrawal or any downgrading in the long term counterparty rating of
Nelnet below "BBB+" by S&P, or any public announcement that such
organization has under surveillance or review its long term counterparty
rating of Nelnet (other than an announcement with positive implications
of a possible upgrading, and no implication of a possible downgrading,
of such rating), (iii) any downgrading in the rating of any debt
securities of trusts sponsored by Nelnet Funding, NELN, the Sellers or
Nelnet by any nationally recognized statistical rating organization or
any public announcement that any such organization has under
surveillance or review its rating of any debt securities of trusts
sponsored by Nelnet Funding, NELN, the Sellers or Nelnet (other than an
announcement with positive implications of a possible upgrading, and no
implication of a possible downgrading, of such rating), or (iv) any
event or development which makes any statement made in the Registration
Statement, the Disclosure Package or Prospectus untrue or which, in the
opinion of Nelnet Funding and its counsel or the Underwriters and their
counsel, requires the filing of any amendment to or change in the
Registration Statement, the Disclosure Package or Prospectus in order to
state a material fact required by any law to be stated therein or
necessary in order to make the statements therein not misleading, if
amending or supplementing the Registration Statement, Prospectus or
Disclosure Package to reflect such event or development would, in the
opinion of the Representatives, materially adversely affect the market
for the Notes.
(c) You shall have received an opinion addressed to you of Xxxxx
Xxxx LLP, in its capacity as counsel to the Trust, dated the Closing
Date, in form and substance satisfactory to you and your counsel with
respect to the Nelnet Funding Purchase Agreement, the Servicing
Agreement, the Indenture, the Trust Eligible Lender Agreement, the
15
Administration Agreement, the Custodian Agreement, the Remarketing
Agreement, the Currency Swap Agreement and this Agreement and to the
validity of the Notes and such related matters as you shall reasonably
request. In addition, you shall have received an opinion addressed to
you of Xxxxx Xxxx LLP, in its capacity as counsel for the Trust, in form
and substance satisfactory to you and your counsel, concerning "true
sale," "non-consolidation" and "first perfected security interest" and
certain other issues with respect to the transfer of the Financed
Eligible Loans from the Sellers to Nelnet Funding, from Nelnet Funding
to the Trust and from the Trust to the Trustee.
(d) You shall have received an opinion addressed to you of Xxxxx
Xxxx LLP, in its capacity as counsel for Nelnet Funding and the Trust,
dated the Closing Date, in form and substance satisfactory to you and
your counsel to the effect that the statements in the Initial FWP and
the Prospectus under the headings "Federal Income Tax Consequences" and
"ERISA Considerations", to the extent that they constitute statements of
matters of law or legal conclusions with respect thereto, have been
prepared or reviewed by such counsel and are correct in all material
respects.
(e) You shall have received an opinion addressed to you of Xxxxx
Xxxx LLP, in its capacity as counsel for Nelnet Funding and the Trust,
dated the Closing Date, in form and substance satisfactory to you and
your counsel with respect to the character of the Notes for federal tax
purposes.
(f) You shall have received an opinion addressed to you of
Stroock & Stroock & Xxxxx LLP, in its capacity as Underwriters' Counsel,
dated the Closing Date, in form and substance satisfactory to you.
(g) You shall have received an opinion addressed to you of
Xxxxxxx Xxxxx Xxxxxxx & Xxxxxxxxx LLP, in its capacity as counsel for
Nelnet Funding and the Trust, dated the Closing Date in form and
substance satisfactory to you and your counsel with respect to the
Prospectus, the Registration Statement and the Disclosure Package and
certain matters arising under the Act, the Trust Indenture Act of 1939,
as amended, and the Investment Company Act of 1940, as amended.
(h) You shall have received opinions addressed to you of Xxxxx,
Xxxxxxx, Xxxxx & Xxxxxxxx, P.C. in their capacity as counsel to NELN, as
master servicer and administrator, Xxxxxx, Nelnet Funding and each of
the Sellers, each dated the Closing Date and satisfactory in form and
substance to you and your counsel, to the effect that:
(i) Each of NELN, Nelnet and each of the Sellers is a
corporation, and Nelnet Funding is a limited liability company,
in good standing under the laws of their respective states of
incorporation or organization; each having the full power and
authority (corporate and other) to own its properties and conduct
its business, as presently conducted by it, and to enter into and
perform its obligations under each of the Basic Documents to
which it is a party.
(ii) The Purchase Agreements have been duly authorized,
executed and delivered by the respective Seller, as applicable,
16
the Purchase Agreements, the Trust Agreement, the Servicing
Agreement, the Nelnet Funding Eligible Lender Agreement and this
Agreement have been duly authorized, executed and delivered by
Nelnet Funding, the Administration Agreement, the Servicing
Agreement, the Remarketing Agreement and the Subservicing
Agreement have been duly authorized, executed and delivered by
NELN and the Subservicing Agreement, the Indemnity Agreement and
the Custodian Agreement have been duly authorized, executed and
delivered by Nelnet and each such agreement is the legal, valid
and binding obligations of the respective Seller, Nelnet Funding,
NELN and Nelnet, as the case may be, enforceable against each
such Seller, Nelnet Funding, NELN and Nelnet, as the case may be,
in accordance with their respective terms, except (x) the
enforceability thereof may be subject to bankruptcy, insolvency,
reorganization, moratorium or other similar laws now or hereafter
in effect relating to creditors' rights and (y) remedy of
specific performance and injunctive and other forms of equitable
relief may be subject to equitable defenses and to the discretion
of the court before which any proceeding therefor may be brought.
(iii) Neither the execution and delivery by NELN of the
Administration Agreement, the Remarketing Agreement, the
Servicing Agreement or the Subservicing Agreement, or the
execution and delivery by Nelnet Funding of the Purchase
Agreements, the Trust Agreement, the Servicing Agreement, the
Nelnet Funding Eligible Lender Agreement or this Agreement, or
the execution by each Seller of the respective Purchase
Agreement, or the execution and delivery by Nelnet of the
Subservicing Agreement, the Indemnity Agreement or the Custodian
Agreement, nor the consummation by NELN, Nelnet Funding, each
Seller or Nelnet of the transactions contemplated therein nor the
fulfillment of the terms thereof by XXXX, Nelnet Funding, each
Seller or Nelnet will conflict with, result in a breach,
violation or acceleration of, or constitute a default under, any
term or provision of the by-laws or limited liability company
agreement, as the case may be, of NELN, Nelnet Funding, each
Seller or Nelnet or of any indenture or other agreement or
instrument to which NELN, Nelnet Funding, any Seller or Nelnet is
a party or by which NELN, Nelnet Funding, any Seller or Nelnet is
bound, or result in a violation of or contravene the terms of any
statute, order or regulation applicable to NELN, Nelnet Funding,
any Seller or Nelnet of any court, regulatory body,
administrative agency or governmental body having jurisdiction
over NELN, Nelnet Funding, any Seller or Nelnet.
(iv) There are no actions, proceedings or investigations
pending or, to the best of such counsel's knowledge after due
inquiry and reasonable investigation, threatened against NELN,
Nelnet Funding, any Seller or Nelnet before or by any
governmental authority that might materially and adversely affect
the performance by NELN, Nelnet Funding, any Seller or Nelnet of
its obligations under, or the validity or enforceability of, any
Basic Documents to which it is a party.
(v) Nothing has come to such counsel's attention that
would lead such counsel to believe that the representations and
warranties of NELN contained in the Administration Agreement, the
17
Remarketing Agreement, the Servicing Agreement or the
Subservicing Agreement, or the representations and warranties of
Nelnet Funding and the Sellers in the Purchase Agreements, the
Trust Agreement, the Servicing Agreement, the Nelnet Funding
Eligible Lender Trust Agreement or this Agreement, or the
representations and warranties of the Sellers contained in the
Purchase Agreements, or the representations and warranties of
Nelnet contained in the Subservicing Agreement, the Indemnity
Agreement or the Custodian Agreement are other than as stated
therein.
(vi) No authorization, approval, or other action by, and
no notice to or filing with, any governmental authority or
regulatory body is required (a) for the due execution, delivery
and performance by NELN of the Administration Agreement, the
Remarketing Agreement, the Servicing Agreement or the
Subservicing Agreement, (b) for the due execution, delivery and
performance by Nelnet Funding of the Purchase Agreements, the
Trust Agreement, the Servicing Agreement, the Nelnet Funding
Eligible Lender Trust Agreement or this Agreement, (c) for the
due execution, delivery and performance by each Seller of the
respective Purchase Agreement, (d) for the due execution,
delivery and performance by Nelnet of the Subservicing Agreement,
the Indemnity Agreement or the Custodian Agreement or (e) for the
perfection of the Trust's and the Trustee's interest in the
Student Loans sold pursuant to the Purchase Agreements or the
exercise by the Trust (or its permitted assigns) and the Trustee
of their rights and remedies under the Purchase Agreements,
including specifically the filings of any Uniform Commercial Code
financing statements, except for the execution and delivery of
the Guarantee Agreements.
(vii) The Nelnet Funding Purchase Agreement together with
the related bill of sale and blanket endorsement effects a valid
sale to the Eligible Lender Trustee of the Student Loans to be
sold under the Nelnet Funding Purchase Agreement enforceable
against creditors of, and purchasers from, Nelnet Funding.
(viii) As of the date specified in a schedule to such
opinion, there were no (a) UCC financing statements naming a
Seller as debtor or seller and covering any Student Loans to be
sold under the Purchase Agreements or interest therein or (b)
notices of the filing of any federal tax lien (filed pursuant to
Section 6323 of the Internal Revenue Code) or lien of the Pension
Benefit Guaranty Corporation (filed pursuant to Section 4068 of
ERISA) covering any Student Loan to be sold under the Purchase
Agreements or interest therein, listed in the available records
in the respective offices set forth in such schedule opposite
each such date (which are all of the offices that are prescribed
under either the internal law of the conflict of law rules of the
Delaware, Nebraska, Indiana and Nevada UCC as the offices in
which filings should be made to perfect security interests in
Student Loans), except as set forth in such schedule.
18
(ix) As of the date of such opinion, by executing the
Guarantee Agreements and upon execution and delivery of the
instruments of transfer described in the Purchase Agreements and
notification of the Guarantors and borrowers of the transfer
contemplated thereby, and assuming that the Eligible Lender
Trustee is an eligible lender as that term is defined in 20
U.S.C. ss.1085(d)(1) of the Higher Education Act of 1965, as
amended, the Eligible Lender Trustee on behalf of the Trust will
be entitled to the benefit of the applicable Guarantor and/or
Department of Education payments under the Act related to the
Student Loans sold under the Purchase Agreements, subject to the
terms and conditions of the Guarantee Agreements and the Act.
(i) You shall have received opinions addressed to you of
Xxxxxxxx, Xxxxxx & Xxxxxx, P.A., in their capacity as counsel to the
Delaware Trustee, and as Delaware counsel to the Trust and Nelnet
Funding, dated the Closing Date and in form and substance satisfactory
to you and your counsel.
(j) You shall have received an opinion of counsel to the Currency
Swap Counterparty, dated the Closing Date, in form and substance
satisfactory to the you and your counsel.
(k) You shall have received an opinion addressed to you of
counsel to the Trustee, dated the Closing Date and in form and substance
satisfactory to you and your counsel, to the effect that:
(i) The Trustee is a national banking association duly
organized and validly existing under the laws of the United
States of America.
(ii) The Trustee has the full corporate trust power to
accept the office of indenture trustee under the Indenture and to
enter into and perform its obligations under the Indenture, the
Custodian Agreement, the Eligible Lender Agreements, the
Administration Agreement, the Investment Agreement and each
Guarantee Agreement.
(iii) The execution and delivery of each of the Indenture,
the Custodian Agreement, the Eligible Lender Agreements, the
Administration Agreement, the Investment Agreement and each
Guarantee Agreement, and the performance by the Trustee of its
obligations under the Indenture, the Custodian Agreement, the
Administration Agreement, the Eligible Lender Agreements, the
Investment Agreement and each Guarantee Agreement, have been duly
authorized by all necessary action of the Trustee and each has
been duly executed and delivered by the Trustee.
(iv) The Indenture, the Custodian Agreement, the Eligible
Lender Agreements, the Administration Agreement, the Investment
Agreement and each Guarantee Agreement constitute valid and
binding obligations of the Trustee enforceable against the
Trustee.
(v) The execution and delivery by the Trustee of the
Indenture, the Custodian Agreement, the Eligible Lender
Agreements, the Administration Agreement, the Investment
Agreement and each Guarantee Agreement do not require any
consent, approval or authorization of, or any registration or
filing with, any state or United States Federal governmental
authority.
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(vi) Each of the Notes has been duly authenticated by the
Trustee.
(vii) Neither the consummation by the Trustee of the
transactions contemplated in the Indenture, the Custodian
Agreement, the Eligible Lender Agreements, the Administration
Agreement, the Investment Agreement and each Guarantee Agreement
nor the fulfillment of the terms thereof by the Trustee will
conflict with, result in a breach or violation of, or constitute
a default under any law or the charter, by-laws or other
organizational documents of the Trustee or the terms of any
indenture or other agreement or instrument known to such counsel
and to which the Trustee or any of its subsidiaries is a party or
is bound or any judgment, order or decree known to such counsel
to be applicable to the Trustee or any of its subsidiaries of any
court, regulatory body, administrative agency, governmental body
or arbitrator having jurisdiction over the Trustee or any of its
subsidiaries.
(viii) There are no actions, suits or proceedings pending
or, to the best of such counsel's knowledge after due inquiry,
threatened against the Trustee (as indenture trustee under the
Indenture or in its individual capacity) before or by any
governmental authority that might materially and adversely affect
the performance by the Trustee of its obligations under, or the
validity or enforceability of, the Indenture, the Custodian
Agreement, the Eligible Lender Agreements, the Administration
Agreement, the Investment Agreement or any Guarantee Agreement.
(ix) The execution, delivery and performance by the
Trustee of the Indenture, the Custodian Agreement, the Eligible
Lender Agreements, the Administration Agreement, the Investment
Agreement or any Guarantee Agreement will not subject any of the
property or assets of the Trust or any portion thereof, to any
lien created by or arising under the Indenture that is unrelated
to the transactions contemplated in such agreements.
(x) The Trustee is an "eligible lender" for purposes of
the FFELP Program in its capacity as trustee with respect to
Financed Eligible Loans held under the Indenture.
(l) You shall have received certificates addressed to you dated
the Closing Date of any one of the Chairman of the Board, the President,
any Executive Vice President, Senior Vice President or Vice President,
the Treasurer, any Assistant Treasurer, the principal financial officer
or the principal accounting officer of Nelnet Funding, each Seller,
Nelnet and NELN in which such officers shall state that, to the best of
their knowledge after reasonable investigation, (i) the representations
and warranties of Nelnet Funding, such Seller, Xxxxxx or NELN, as the
case may be, contained in the respective Basic Documents to which it is
a party, as applicable, are true and correct in all material respects,
that each of Nelnet Funding, such Seller, Nelnet and XXXX has complied
with all agreements and satisfied all conditions on its part to be
performed or satisfied under such agreements at or prior to the Closing
20
Date, (ii) that they have reviewed the Prospectus and the Disclosure
Package and that the information therein regarding Nelnet Funding, such
Seller, Nelnet or NELN, as applicable, is fair and accurate in all
material respects, and (iii) since the date set forth in such
certificate, except as may be disclosed in the Prospectus and the
Disclosure Package, no material adverse change or any development
involving a prospective material adverse change, in or affecting
particularly the business or properties of Nelnet Funding, such Seller,
Nelnet or NELN, as applicable, has occurred.
(m) You shall have received evidence satisfactory to you that, on
or before the Closing Date, UCC-1 financing statements have been or are
being filed in the office of the Secretary of State of the State of
Delaware reflecting the grant of the security interest by the Trust in
the Financed Eligible Loans and the proceeds thereof to the Trustee.
(n) You shall have received a certificate addressed to you dated
the Closing Date from a responsible officer acceptable to you of the
Trustee in form and substance satisfactory to you and your counsel and
to which shall be attached each Guarantee Agreement.
(o) The Underwriters shall have received on the Closing Date from
KPMG LLP letters dated the Closing Date (or, with respect to (ii) below,
a copy of the letter furnished by KPMG LLP to Nelnet Funding), and in
form and substance satisfactory to the Representatives, to the effect
that they have carried out certain specified procedures, not
constituting an audit, with respect to (i) certain information regarding
the Financed Eligible Loans, (ii) certain static pool data and (iii)
certain calculations with respect to expected maturities and percentages
or original principal of the Notes remaining at each quarterly
distribution date, and setting forth the results of such specified
procedures.
(p) All the representations and warranties of Nelnet Funding and
the Trust contained in this Agreement and the Basic Documents shall be
true and correct in all material respects on and as of the date hereof
and on and as of the Closing Date as if made on and as of the Closing
Date and the Underwriters shall have received a certificate, dated the
Closing Date and signed by an executive officer of Nelnet Funding to the
effect set forth in this Section 7(o) and in Section 7(p) hereof.
(q) Neither Nelnet Funding nor the Trust shall have failed at or
prior to the Closing Date to have performed or complied with any of its
agreements herein contained and required to be performed or complied
with by it hereunder at or prior to the Closing Date.
(r) The Underwriters shall have received by instrument dated the
Closing Date (at the option of the Representatives), in lieu of or in
addition to the legal opinions referred to in this Section 7, the right
to rely on opinions provided by such counsel and all other counsel under
the terms of the Basic Documents.
(s) Each class of Class A Notes shall be rated "AAA", "AAA" and
"Aaa", respectively, by Fitch, Inc. ("Fitch"), Standard & Poor's Ratings
Service, a division of The XxXxxx-Xxxx Companies, Inc. ("S&P"), and
Xxxxx'x Investors Service, Inc. ("Xxxxx'x"), the Class B Notes shall be
rated "AA+", "AA+" and "Aal", or higher, by Fitch, S&P and Moody's,
respectively, and that neither Fitch, S&P nor Moody's have placed the
Notes under surveillance or review with possible negative implications.
21
(t) You shall have received evidence satisfactory to you of the
completion of all actions necessary to effect the transfer of the
Financed Eligible Loans as described in the Prospectus and the
Disclosure Package and the recordation thereof on each Sellers' and
XXXX's computer systems.
(u) You shall have received certificates addressed to you dated
the Closing Date from officers of Nelnet Funding and legal opinions
addressing such additional matters as you may reasonably request in form
and substance satisfactory to you and your counsel.
(v) You shall have received a signed Indemnity Agreement from
Nelnet in form and substance satisfactory to you and your counsel.
(w) You shall have received certificates dated the Closing Date
of National Student Loan Program and College Access Network (formerly
Colorado Student Loan Program) to the effect that the information in the
Disclosure Package or Prospectus, as applicable, with respect to such
entity is true and correct and is fair and accurate in all material
respects.
(x) You shall have received a signed copy of the Disclosure
Agreement.
(y) On the Closing Date, the aggregate principal amount of the
Notes, as specified in Schedule A to this Agreement, shall have been
sold by the Trust to the Underwriters and the Underwriters shall have
received from Nelnet payment of all discounts and commissions in
connection with the underwriting of the Notes as provided for in Section
2 hereof.
(z) You shall have received opinions of counsel to any provider
of an investment agreement, guaranteed investment contract, or other
similar agreement, in form and substance satisfactory to you and your
counsel, relating to corporate and securities matters with respect to
such arrangement and its provider.
(aa) You shall have received such other opinions, certificates
and documents as are required under the Indenture as a condition to the
issuance of the Notes.
Nelnet Funding will provide or cause to be provided to you such
conformed copies of such of the foregoing opinions, notes, letters and documents
as you reasonably request.
8. EXPENSES. Nelnet Funding agrees to pay or to otherwise cause the
payment of the following costs and expenses and all other costs and expenses
incident to the performance by it of its obligations hereunder: (i) the
preparation, printing or reproduction of the Registration Statement, the
Prospectus, the Disclosure Package and each amendment or supplement to any of
them, this Agreement, and each other Basic Document; (ii) the printing (or
reproduction) and delivery (including postage, air freight charges and charges
for counting and packaging) of such copies of the Registration Statement, the
22
Prospectus, the Disclosure Package and all amendments or supplements to, and
preliminary versions of, any of them as may be reasonably requested for use in
connection with the offering and sale of the Notes; (iii) the preparation,
printing, authentication, issuance and delivery of definitive certificates for
the Notes; (iv) the printing (or reproduction) and delivery of this Agreement,
the preliminary and supplemental Blue Sky Memoranda and all other agreements or
documents printed (or reproduced) and delivered in connection with the offering
of the Notes; (v) qualification of the Indenture under the Trust Indenture Act;
(vi) the qualification of the Notes for offer and sale under the securities or
Blue Sky laws of the several states as provided in Section 3(h) hereof
(including the reasonable fees, expenses and disbursements of counsel relating
to the preparation, printing or reproduction, and delivery of the preliminary
and supplemental Blue Sky Memoranda and such qualification); (vii) the fees and
disbursements of (A) the Trust's counsel, (B) the Underwriters' counsel, (C) the
Trustee and its counsel, (D) the Delaware Trustee and its counsel, (E) the
Depository Trust Company in connection with the book-entry registration of the
Notes, (F) the SEC and (G) KPMG LLP, accountants for the Trust and issuer of the
Comfort Letter; (viii) obtaining any investment agreement, guaranteed investment
contract or other similar arrangement; and (ix) the fees charged by S&P, Fitch
and Moody's for rating the Notes.
9. EFFECTIVE DATE OF AGREEMENT. This Agreement shall be deemed effective
as of the date first above written upon the execution and delivery hereof by all
the parties hereto. Until such time as this Agreement shall have become
effective, it may be terminated by Nelnet Funding, by notifying each of the
Representatives, or by the Representatives, by notifying Nelnet Funding.
Any notice under this Section 9 may be given by telecopy or telephone
but shall be subsequently confirmed by letter.
10. TERMINATION OF AGREEMENT. This Agreement shall be subject to
termination in the absolute discretion of the Representatives, without liability
on the part of the Underwriters to Nelnet Funding, by notice to Nelnet Funding,
if prior to the Closing Date (i) trading in securities generally on the New York
Stock Exchange, American Stock Exchange or the Nasdaq National Market shall have
been suspended or materially limited, (ii) a general moratorium on commercial
banking activities in New York shall have been declared by either Federal or
state authorities, or (iii) there shall have occurred any outbreak or escalation
of hostilities or other international or domestic calamity, crisis or change in
political, financial or economic conditions, the effect of which is such as to
make it, in the judgment of the Representatives, impracticable or inadvisable to
commence or continue the offering of the Notes on the terms set forth in the
Disclosure Package and Prospectus, as applicable, or to enforce contracts for
the resale of the Notes by the Underwriters. Notice of such termination may be
given to Nelnet Funding by telecopy or telephone and shall be subsequently
confirmed by letter.
11. INFORMATION FURNISHED BY THE UNDERWRITERS. The (a) statements set
forth in the second, ninth and tenth paragraphs and each table under the heading
"Plan of Distribution" in the Disclosure Supplement and the Prospectus and (b)
calculations provided by the Underwriters in the Road Show Material, the
Disclosure Supplement and the Prospectus based upon data provided by Nelnet
Funding, which data does not contain an untrue statement or omission, constitute
the only information furnished by or on behalf of the Underwriters as such
information is referred to in Sections 3(b) and 6 hereof.
23
12. ABSENCE OF FIDUCIARY RELATIONSHIP. Nelnet Funding acknowledges and
agrees that:
(a) the Underwriters have been retained solely to act as underwriters in
connection with the sale of the Notes and agree with Nelnet Funding that no
fiduciary, advisory or agency relationship between Nelnet Funding and the
Underwriters has been created in respect of any of the transactions contemplated
by this Agreement, irrespective of whether the Underwriters have advised or are
advising Nelnet Funding on other matters and further agree that the Underwriters
xxx Xxxxxx Funding only those duties and obligations set forth herein;
(b) the price of the Notes set forth in this Agreement was established
by Nelnet Funding following discussions and arms-length negotiations with the
Underwriters and Nelnet Funding is capable of evaluating and understanding and
understands and accepts the terms, risks and conditions of the transactions
contemplated by this Agreement;
(c) Nelnet Funding has been advised that the Underwriters and their
affiliates are engaged in a broad range of transactions which may involve
interests that differ from those of Nelnet Funding and that the Underwriters
have no obligation to disclose such interests and transactions to Nelnet Funding
by virtue of any fiduciary, advisory or agency relationship; and
(d) Nelnet Funding waives, to the fullest extent permitted by law, any
claims it may have against the Underwriters for breach of fiduciary duty or
alleged breach of fiduciary duty and agrees that the Underwriters shall have no
liability (whether direct or indirect) to Nelnet Funding in respect of such a
fiduciary duty claim or to any person asserting a fiduciary duty claim on behalf
of or in right of Nelnet Funding, including stockholders, employees or creditors
of Nelnet Funding.
13. DEFAULT BY ONE OF THE UNDERWRITERS. If any of the Underwriters shall
fail on the Closing Date to purchase the Notes which it is obligated to purchase
hereunder (the "Defaulted Notes"), the remaining Underwriters which are
obligated to purchase that class of Notes (the "Non-Defaulting Underwriters")
shall have the right, but not the obligation, within one (1) Business Day
thereafter, to make arrangements to purchase all, but not less than all, of the
remaining Defaulted Notes of such class upon the terms herein set forth; if,
however, any such Non-Defaulting Underwriters shall have not completed such
arrangements within such one (1) Business Day period, then this Agreement shall
terminate without liability on the part of any such Non-Defaulting Underwriter.
No action taken pursuant to this Section shall relieve any defaulting
Underwriter from liability in respect of its default.
In the event of any such default which does not result in a termination
of this Agreement, either the Non-Defaulting Underwriters or Nelnet Funding
shall have the right to postpone the Closing Date for a period not exceeding
seven days in order to effect any required changes in the Registration Statement
or Prospectus or in any other documents or arrangements.
14. SURVIVAL OF REPRESENTATIONS AND WARRANTIES. The respective
indemnities, agreements, representations, warranties and other statements of
Nelnet Funding or its officers and of the Underwriters set forth in or made
pursuant to this Agreement or contained in notes of officers of Nelnet Funding
24
submitted pursuant hereto shall remain operative and in full force and effect,
regardless of any investigation or statement as to the results thereof, made by
or on behalf of the Underwriters, Nelnet Funding or any of their respective
representatives, officers or directors or any controlling person, and will
survive (i) delivery of and payment for the Notes or (ii) termination of this
Agreement.
15. MISCELLANEOUS. Except as otherwise provided in Sections 6, 9 and 10
hereof, notice given pursuant to any provision of this Agreement shall be in
writing and shall be delivered (i) if to Nelnet Funding, at 000 Xxxxx 00xx
Xxxxxx, Xxxxx 000, Xxxxxxx, Xxxxxxxx 00000, Attention: Xxxxx X. Xxxxxx, and (ii)
if to the Underwriters, to the address of the respective Underwriter set forth
above with a copy to Stroock & Stroock & Xxxxx LLP, 000 Xxxxxx Xxxx, Xxx Xxxx,
Xxx Xxxx 00000, Attention: Xxxxxxx X. Xxxxx.
This Agreement has been and is made solely for the benefit of the
Underwriters, Nelnet Funding, the Trust, their respective directors, officers,
managers, trustees and controlling persons referred to in Section 6 hereof and
their respective successors and assigns, to the extent provided herein, and no
other person shall acquire or have any right under or by virtue of this
Agreement. Neither the term "successor" nor the term "successors and assigns" as
used in this Agreement shall include a purchaser from an Underwriter of any of
the Notes in his status as such purchaser.
16. APPLICABLE LAW, COUNTERPARTS. This Agreement shall be governed by
and construed in accordance with the laws of the State of New York applicable to
contracts made and to be performed within the State of New York (including
Section 5-1401 of the General Obligations Law, but otherwise without giving
effect to the choice of laws or conflict of laws principles thereof).
Nelnet Funding hereby submits to the non-exclusive jurisdiction of the
federal and state courts in the Borough of Manhattan in The City of New York in
any suit or proceeding arising out of or relating to this Agreement or the
transactions contemplated hereby.
This Agreement may be signed in various counterparts which together
constitute one and the same instrument. If signed in counterparts, this
Agreement shall not become effective unless at least one counterpart hereof or
thereof shall have been executed and delivered on behalf of each party hereto.
17. EUROPEAN UNDERWRITERS. The execution of this Agreement by each of
Banc of America Securities Limited, Credit Suisse Securities (Europe) Limited,
Deutsche Bank AG, London Branch, Barclays Bank PLC and Societe Generale, London
Branch will constitute acceptance by each such entity of the IPMA Agreement
Among Managers Version 1, New York law.
18. 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 Notes,
represents the entire agreement between Nelnet Funding and the Underwriters with
respect to the preparation of the Prospectus, the conduct of the offering and
the purchase and sale of the Notes.
25
[Signature Page to Underwriting Agreement]
Please confirm that the foregoing correctly sets forth the agreement
between the Nelnet Funding and the Underwriters.
Very truly yours,
NELNET STUDENT LOAN FUNDING, LLC
By: Nelnet Student Loan Management
Corporation, as Manager and Special Member
By: /s/ Xxxxxxx X. Xxxxxxxxx
------------------------------------------
Name: Xxxxxxx X. Xxxxxxxxx
Title: Vice President
Confirmed as of the date first above mentioned.
BANC OF AMERICA SECURITIES LLC,
acting on behalf of itself and as Representative of the Underwriters
By: /s/ Xxxxx Xxxxxx
-------------------------------------
Name: Xxxxx Xxxxxx
Title: Principal
BANC OF AMERICA SECURITIES LIMITED
By: /s/ XX Xxxxxxxx
-------------------------------------
Name: XX Xxxxxxxx
Title: Managing Director
CREDIT SUISSE SECURITIES (USA) LLC,
acting on behalf of itself and as Representative of the Underwriters
By: /s/ Xxxxxxxx Xxxxx
---------------------------------------
Name: Xxxxxxxx Xxxxx
Title: Managing Director
26
CREDIT SUISSE SECURITIES (EUROPE) LIMITED
By: /s/ Xxxxxxx Xxxxxxx de Mallerais
---------------------------------------
Name: Xxxxxxx Xxxxxxx xx Xxxxxxxxx
Title: Director
DEUTSCHE BANK SECURITIES INC.,
acting on behalf of itself and as Representative of the Underwriters
By: /s/ Xxxxx X. Xxxxxx
-------------------------------------
Name: Xxxxx X. Xxxxxx
Title: Director
By: /s/ Xxxxxxx X'Xxxxx
-------------------------------------
Name: Xxxxxxx X'Xxxxx
Title: Vice President
DEUTSCHE BANK AG, LONDON BRANCH
By: /s/ Xxxx XxXxxxxxx
--------------------------------------
Name: Xxxx XxXxxxxxx
Title: Director
By: /s/ Xxxx Xxxxxx
--------------------------------------
Name: Xxxx Xxxxxx
Title: Director
27
BARCLAYS BANK PLC
By: /s/ Xxxxxxxx Xxxxxx
--------------------------------------
Name: Xxxxxxxx Xxxxxx
Title: Managing Director
SOCIETE GENERALE, LONDON BRANCH
By: /s/ Bataille
---------------------------------------
Name: Bataille
Title: CEO of Societe Generale, London Branch
SCHEDULE A
-------------------------- ------------ ------------ ------------ ------------- ------------ ------------ ------------ -------------
Notes Class A-1 Class A-2 Class A-3 Class A-4 Class A-5 Class A-6* Class B TOTAL
-------------------------- ------------ ------------ ------------ ------------- ------------ ------------ ------------ -------------
Banc of America
Securities LLC $37,465,000 $103,250,000 $65,195,000 $104,135,000 $114,755,000 N/A $17,700,000 $600,833,333
-------------------------- ------------ ------------ ------------ ------------- ------------ ------------ ------------ -------------
Credit Suisse Securities
(USA) LLC $37,465,000 $103,250,000 $65,195,000 $104,135,000 $114,755,000 N/A $17,700,000 $600,833,333
-------------------------- ------------ ------------ ------------ ------------- ------------ ------------ ------------ -------------
Deutsche Bank Securities
Inc $37,465,000 $103,250,000 $65,195,000 $104,135,000 $114,755,000 N/A $17,700,000 $600,833,333
-------------------------- ------------ ------------ ------------ ------------- ------------ ------------ ------------ -------------
Barclays Capital Inc $3,175,000 $8,750,000 $5,525,000 $8,825,000 $9,725,000 N/A $1,500,000 $50,000,000
-------------------------- ------------ ------------ ------------ ------------- ------------ ------------ ------------ -------------
Nelnet Capital, LLC $8,255,000 $22,750,000 $14,365,000 $22,945,000 $25,285,000 N/A $3,900,000 $97,500,000
-------------------------- ------------ ------------ ------------ ------------- ------------ ------------ ------------ -------------
SG Americas Securities,
LLC $3,175,000 $8,750,000 $5,525,000 $8,825,000 $9,725,000 N/A $1,500,000 $50,000,000
-------------------------- ------------ ------------ ------------ ------------- ------------ ------------ ------------ -------------
Banc of America Securities N/A N/A N/A N/A N/A (euro)113,165,000 N/A N/A
Limited
-------------------------- ------------ ------------ ------------ ------------- ------------ ------------ ------------ -------------
Credit Suisse Securities N/A N/A N/A N/A N/A (euro)113,165,000 N/A N/A
(Europe) Limited
-------------------------- ------------ ------------ ------------ ------------- ------------ ------------ ------------ -------------
Deutsche Bank AG, London
Branch N/A N/A N/A N/A N/A (euro)113,165,000 N/A N/A
-------------------------- ------------ ------------ ------------ ------------- ------------ ------------ ------------ -------------
Barclays Bank PLC N/A N/A N/A N/A N/A (euro)10,513,000 N/A N/A
-------------------------- ------------ ------------ ------------ ------------- ------------ ------------ ------------ -------------
Societe Generale,
London Branch N/A N/A N/A N/A N/A (euro)10,513,000 N/A N/A
-------------------------- ------------ ------------ ------------ ------------- ------------ ------------ ------------ -------------
(euro)
Total $127,000,000 $350,000,000 $221,000,000 $353,000,000 $389,000,000 420,521,000 $60,000,000 $2,000,000,000
-------------------------- ------------ ------------ ------------ ------------- ------------ ------------ ------------ -------------
* Using an exchange rate of $1.189 = (euro) 1.00.
SCHEDULE B
TERMS OF THE NOTES
-------------- -------------------------- -------------------- ----------------- --------------- -------------------
Underwriting
Class Interest Rate Final Maturity Date Price to Public Discount Proceeds to Trust
-------------- -------------------------- -------------------- ----------------- --------------- -------------------
Class A-1 3-month LIBOR minus 0.02% August 23, 2011 100% 0.125% $126,841,250
-------------- -------------------------- -------------------- ----------------- --------------- -------------------
Class A-2 3-month LIBOR plus 0.01% February 23, 2016 100% 0.160% $349,440,000
-------------- -------------------------- -------------------- ----------------- --------------- -------------------
Class A-3 3-month LIBOR plus 0.04% November 23, 2018 100% 0.175% $220,613,250
-------------- -------------------------- -------------------- ----------------- --------------- -------------------
Class A-4 3-month LIBOR plus 0.09% November 23, 2022 100% 0.190% $352,329,300
-------------- -------------------------- -------------------- ----------------- --------------- -------------------
Class A-5 3-month LIBOR plus 0.11% August 23, 2027 100% 0.210% $388,183,100
-------------- -------------------------- -------------------- ----------------- --------------- -------------------
Class A-6 3-month EURIBOR plus 0.11% August 25, 2036 100% 0.245% (euro)419,490,724
-------------- -------------------------- -------------------- ----------------- --------------- -------------------
Class B 3-month LIBOR plus 0.22% August 23, 2039 100% 0.305% $59,817,000
-------------- -------------------------- -------------------- ----------------- --------------- -------------------
TOTAL $1,995,998,900
-------------- -------------------------- -------------------- ----------------- --------------- -------------------
* Using an exchange rate of $1.189 = (euro) 1.00.
