EXHIBIT 99.3(a)
EXECUTION COPY
XXXXXX XXXXXXX CAPITAL I INC.
MORTGAGE PASS-THROUGH CERTIFICATES
Series 0000-0
XXXXXXXXXXXX XXXXXXXXX
Xxx Xxxx, Xxx Xxxx
January 27, 2006
Xxxxxx Xxxxxxx & Co. Incorporated
0000 Xxxxxxxx
Xxx Xxxx, Xxx Xxxx 00000
Dear Sirs and Madams:
Xxxxxx Xxxxxxx Capital I Inc., a Delaware corporation (the
"Company"), proposes to sell to you as representative (the "Underwriter") the
Xxxxxx Xxxxxxx Mortgage Loan Trust 0000-0 (xxx "Xxxxxxx Xxxxxx"), Mortgage
Pass-Through Certificates, Series 2006-2 in the classes and in the respective
original principal or notional amounts and with the designations described on
Schedule A attached hereto (the "Securities"). The Securities, along with
the Class B-1, Class B-2, Class B-3 and Class P Certificates (the "Private
Securities"), will be issued pursuant to a pooling and servicing agreement
dated as of January 1, 2006 (the "Pooling and Servicing Agreement") among the
Company, as depositor, Xxxxx Fargo Bank, National Association ("Xxxxx
Fargo"), as the master servicer (the "Master Servicer") and as securities
administrator (the "Securities Administrator"), Xxxxxx Xxxxxxx Mortgage
Capital Inc., as seller ("MSMCI"), and LaSalle Bank National Association, as
trustee (the "Trustee"). The Securities will represent undivided beneficial
ownership interests in a trust fund consisting primarily of a pool of
fixed-rate mortgage loans (the "Mortgage Loans"), secured by first liens on
one- to four-family residential properties. The Mortgage Loans may be sold to
the Depositor pursuant to various mortgage loan purchase agreements (such
agreements, the "Mortgage Loan Purchase Agreements" and the "Servicing
Agreements," respectively) between MSMCI and one or more sellers (the
"Sellers"), a mortgage loan purchase agreement between MSMCI and the Depositor
and assignment, assumption and recognition agreements between the Depositor,
MSMCI, the Trustee and each Seller and/or servicer (each servicer, a
"Servicer") (collectively, the "Assignment Agreements"), as applicable.
The Company has filed with the Securities and Exchange Commission
(the "Commission") a registration statement, including a prospectus, relating
to the Securities and has filed with the Commission one or more free writing
prospectuses (together, the "Free Writing Prospectus") and prospectus
supplement (the "Prospectus Supplement") specifically relating to the
Securities pursuant to Rule 424 under the Securities Act of 1933 (the
"Securities Act") and the rules and regulations thereunder (the "Securities
Act Regulations"). The term Registration Statement means such registration
statement as amended to the date of the Underwriting Agreement. The term
Base Prospectus means the prospectus included in the Registration Statement.
The term Prospectus means the Base Prospectus together with the Prospectus
Supplement specifically relating to the Securities, as filed with the
Commission pursuant to Rule 424. The term free writing prospectus means any
free writing prospectus, as defined in Rule 405
of the Securities Act. Any reference in this underwriting agreement (the
"Agreement") to the Registration Statement or the Prospectus shall be deemed
to refer to and include the documents incorporated by reference therein
pursuant to Item 12 of Form S-3 under the Securities Act, as of the effective
date of the Registration Statement or the Prospectus, as the case may be.
Terms not otherwise defined in this Agreement are used in this Agreement as
defined in the Pooling and Servicing Agreement.
The term "Disclosure Package" means (i) the Base Prospectus, as
most recently amended or supplemented immediately prior to the Initial Sale
Time (as defined herein) and (ii) any Free Writing Prospectus that the
parties hereto shall hereafter expressly agree to treat as part of the
Disclosure Package. If, subsequent to the date of this Agreement, the
Company and the Underwriter have determined that the Disclosure Package
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 the
circumstances under which they were made, not misleading and have terminated
their old purchase contracts and entered into new purchase contracts with
purchasers of the Securities, then the "Disclosure Package" will refer to the
information available to purchasers at the time of entry into the first such
new purchase contract, including any information that corrects such material
misstatements or omissions ("Corrective Information").
I.
The Company represents and warrants to and agrees with the
Underwriter that:
(a) 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 before or threatened by
the Commission.
(b) (i) Each part of the Registration Statement, when such part
became effective, did not contain, and each such part, as amended or
supplemented, if applicable, will not contain any untrue statement of a
material fact or omit to state a material fact required to be stated
therein or necessary to make the statements therein not misleading, (ii)
the Registration Statement, the Disclosure Package and the Prospectus
comply, and, as amended or supplemented, if applicable, will comply in
all material respects with the Securities Act and the applicable rules
and regulations of the Commission thereunder and (iii) each of the
Disclosure Package and the Prospectus does not contain and, as amended
or supplemented, if applicable, will not contain any untrue statement of
a material fact or omit to state a material fact necessary to make the
statements therein, in the light of the circumstances under which they
were made, not misleading, except that the representations and
warranties set forth in this paragraph I(b) do not apply to statements
or omissions in the Registration Statement, the Disclosure Package or
the Prospectus based upon and in conformity with information relating to
the Underwriter furnished to the Company in writing by the Underwriter
expressly for use or incorporation therein.
(c) The Company has been duly incorporated, is validly existing as
a corporation in good standing under the laws of the State of Delaware,
has the corporate power and authority to own its property and to conduct
its business as described in the
Prospectus and to enter into and perform its obligations under this
Agreement and the Pooling and Servicing Agreement.
(d) This Agreement has been duly authorized, executed and
delivered by the Company.
(e) Each of the Pooling and Servicing Agreement and the Assignment
Agreements has been duly authorized, executed and delivered by the
Company and is a valid and binding agreement of the Company,
enforceable in accordance with its terms except as the enforceability
thereof may be limited by bankruptcy, insolvency or similar laws
affecting creditors' rights generally and to general principles of
equity regardless of whether enforcement is sought in a proceeding in
equity or at law.
(f) The direction by the Company to the Securities Administrator
to execute, authenticate and deliver the Securities has been duly
authorized by the Company, and the Securities, when executed and
authenticated in the manner contemplated in the Pooling and Servicing
Agreement, and delivered to and paid for by the Underwriter in
accordance with the terms of this Agreement, will be validly issued and
outstanding and entitled to the benefits of the Pooling and Servicing
Agreement.
(g) Neither the execution and delivery by the Company of, nor the
performance by the Company of its obligations under, this Agreement, the
Pooling and Servicing Agreement and the Assignment Agreements, will
contravene any provision of applicable law or the certificate of
incorporation or by-laws of the Company or any agreement or other
instrument binding upon the Company that is material to the Company or
any judgment, order or decree of any governmental body, agency or court
having jurisdiction over the Company or any subsidiary, and no consent,
approval, authorization or order of, or qualification with, any
governmental body or agency is required for the performance by the
Company of its obligations under this Agreement, the Pooling and
Servicing Agreement and the Assignment Agreements, except such as may be
required by the securities or Blue Sky laws of the various states in
connection with the offer and sale of the Securities.
(h) There has not occurred any material adverse change, or any
development involving a prospective material adverse change, in the
condition, financial or otherwise, or in the earnings, business or
operations of the Company and its subsidiaries, taken as a whole, from
that set forth in the Prospectus.
(i) There are no legal or governmental proceedings pending or
threatened to which the Company is a party or to which any of the
properties of the Company are subject that are required to be described
in the Registration Statement, the Disclosure Package or the Prospectus
and that are not so described, nor are there any statutes, regulations,
contracts or other documents required to be described in the
Registration Statement, the Disclosure Package or the Prospectus or to
be filed as exhibits to the Registration Statement that are not
described or filed as required.
(j) Each preliminary prospectus filed as part of the Registration
Statement as originally filed or as a part of any amendment thereto, or
filed pursuant to Rule 424 under the Securities Act, complied as to
form, when so filed, in all material respects with the Securities Act
and the rules and regulations of the Commission thereunder.
(i) The Company is not an "investment company" or an entity
"controlled" by an "investment company," as such terms are defined in
the Investment Company Act of 1940, as amended (the "Investment Company
Act").
(ii) the Company is eligible to use Free Writing Prospectuses in
connection with this offering pursuant to Rules 164 and 433 of the
Securities Act Regulations; any Free Writing Prospectus that the Company
is required to file pursuant to Rule 433(d) under the Securities Act
Regulations has been, or will be, filed with the Commission in
accordance with the requirements of the Securities Act and the
Securities Act Regulations; and each Free Writing Prospectus that the
Company has filed, or is required to file, pursuant to Rule 433(d) under
the Securities Act Regulations or that was prepared by or on behalf of
or used by the Company complies or will comply in all material respects
with the requirements of the Securities Act and the Securities Act
Regulations.
(iii) The characteristics of the Issuing Entity will not subject the
Issuing Entity to registration as an "investment company" under the
Investment Company Act.
II.
MSMCI represents and warrants to and agrees with the Underwriter
that:
(a) MSMCI has been duly incorporated, is validly existing as a
corporation in good standing under the laws of the State of New York,
has the corporate power and authority to own its property and to conduct
its business as described in the Prospectus and to enter into and
perform its obligations under this Agreement and the Pooling and
Servicing Agreement.
(b) This Agreement has been duly authorized, executed and
delivered by MSMCI.
(c) Each of the Pooling and Servicing Agreement, the Mortgage Loan
Purchase Agreements and the Assignment Agreements has been duly
authorized, executed and delivered by MSMCI and is a valid and binding
agreement of MSMCI, enforceable in accordance with its terms except as
the enforceability thereof may be limited by bankruptcy, insolvency or
similar laws affecting creditors' rights generally and to general
principles of equity regardless of whether enforcement is sought in a
proceeding in equity or at law.
(d) Neither the execution and delivery by MSMCI of, nor the
performance by the Company of its obligations under, the Pooling and
Servicing Agreement, the Mortgage Loan Purchase Agreements and the
Assignment Agreements, will contravene any provision of applicable law
or the certificate of incorporation or by-laws of MSMCI or any agreement
or other instrument binding upon MSMCI that is material to MSMCI or
any judgment, order or decree of any governmental body, agency or court
having jurisdiction over MSMCI or any subsidiary, and no consent,
approval, authorization or order of, or qualification with, any
governmental body or agency is required for the performance by MSMCI of
its obligations under the Pooling and Servicing Agreement, the Mortgage
Loan Purchase Agreements and the Assignment Agreements.
(iv)
The Company hereby agrees to sell the Securities to the
Underwriter, and the Underwriter, upon the basis of the representations and
warranties contained in this Agreement, but subject to the conditions stated
in this Agreement, agrees to purchase the Securities from the Company, for a
purchase price that is the sum of (i) 100.00% of the original principal amount
of the Securities and (ii) accrued interest, if any, from the Closing Date to
the date of payment and delivery.
III.
The Underwriter proposes to make a public offering of the
Securities as soon as the Underwriter deems advisable after this Agreement
has been executed and delivered. The terms of the public offering of the
Securities are set forth in the Prospectus.
In connection with the offering of the Securities, the
Underwriter may prepare and provide to prospective investors Free Writing
Prospectuses, or portions thereof, which the Company is required to file with
the Commission in electronic format and will use reasonable efforts to
provide to the Company 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 Company, in its sole discretion, waives such
requirements, subject to the following conditions (to which such conditions
the Underwriter agrees):
"Business Day" shall mean any day other than (i) a Saturday
or Sunday or (ii) a day on which banking institutions in the
State of New York or the jurisdiction in which the offeree is
located are required or authorized by law or executive order to
be closed.
Unless preceded or accompanied by the Base Prospectus, the
Underwriter shall not convey or deliver any written communication
to any person in connection with the initial offering of the
Securities, unless such written communication (1) is made in
reliance on Rule 134 of the Securities Act Regulations, (2)
constitutes a prospectus satisfying the requirements of Rule 430B
of the Securities Act Regulations or (3) constitutes a Free
Writing Prospectus and such Free Writing Prospectus is attached
to this Agreement as Schedule B. The Underwriter shall not
convey or deliver in connection with the initial offering of the
Securities any "ABS informational and computational material," as
defined in Item 1101(a) of Regulation AB of the Securities Act
Regulations ("ABS Informational and Computational Material"), in
reliance upon Rules 167 and 426 of the Securities Act Regulations
in lieu of a free writing prospectus.
The Underwriter shall deliver to the Depositor, (a) no
later than two Business Days prior to the date of first use
thereof, any Free Writing Prospectus prepared by or on behalf of
such Underwriter that contains any "issuer information," as
defined in Rule 433(h) of the Securities Act Regulations and
footnote 271 of the Commission's Securities Offering Reform
Release No. 33-8591 ("Issuer Information") (which the parties
hereto agree includes, without limitation, Pool Information (as
defined herein)), and (b) upon first use, any Free Writing
Prospectus or portion thereof that contains only a description of
the final terms of the Securities. Notwithstanding the
foregoing, any Free Writing Prospectus that contains only ABS
Informational and Computational Materials shall be delivered by
any Underwriter to the Company 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) of the Securities Act
Regulations and (b) the date of first use of such Free Writing
Prospectus.
The Underwriter represents and warrants to the Company that
the Free Writing Prospectuses to be furnished to the Company by
the Underwriter pursuant to Section 3(b)(ii) above will
constitute all Free Writing Prospectuses of the type described in
such Section that were furnished to prospective investors by such
Underwriter in connection with its offer and sale of the
Securities.
The Underwriter represents and warrants to the Company that
each Free Writing Prospectus required to be provided by it to the
Company pursuant to Section 3(b)(ii) above, 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, when read in conjunction
with the other information included in the Disclosure Package,
omit any material fact necessary to make the statements contained
therein, 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
supplied by the Company to such Underwriter, which information
was not corrected by Corrective Information subsequently supplied
by the Company to the Underwriter prior to the Time of Sale.
The Company agrees to file with the Commission the
following:
1. Any Free Writing Prospectus or portion thereof
delivered by the Underwriter to the Company pursuant to
Article IV(B)(ii); and
2. Any Free Writing Prospectus for which the
Company or any person acting on its behalf provided,
authorized or approved information that is prepared and
published or disseminated by a person unaffiliated with the
Company or any other offering participant that is in the
business of publishing, radio or television broadcasting or
otherwise disseminating communications.
Any Free Writing Prospectus required to be filed pursuant
to Article IV(B)(v) by the Company shall be filed with the
Commission not later than the date of first use of the Free
Writing Prospectus, except that:
(a) Any Free Writing Prospectus or portion thereof
required to be filed that contains only the description of
the final terms of the Securities shall be filed by the
Company with the Commission within two days of the later of
the date such final terms have been established for all
classes of Securities 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 Company
with the Commission not later than the later of the due date
for filing the final Prospectus relating to the Securities
pursuant to Rule 424(b) of the Securities Act Regulations
and two Business Days after the first use of such Free
Writing Prospectus;
(c) Any Free Writing Prospectus required to be filed
pursuant to Article IV(B)(v)(b) shall, if no payment has
been made or consideration has been given by or on behalf of
the Company for the Free Writing Prospectus or its
dissemination, be filed by the Company with the Commission
not later than four Business Days after the Company becomes
aware of the publication, radio or television broadcast or
other dissemination of the Free Writing Prospectus; and
(d) The Company shall not be required to file (1)
Issuer Information contained in any Free Writing Prospectus
of an Underwriter or any other offering participant other
than the Company, 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 Securities or (2) any Free Writing
Prospectus or portion thereof that contains a description of
the Securities or the offering of the Securities which does
not reflect the final terms thereof.
The 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 the 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.
Notwithstanding the provisions of Article IV(B)(vii), the
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 information that is
prepared and published or disseminated by a person unaffiliated
with the Company 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 Company 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.
Notwithstanding the provisions of Articles IV(B)(v) and
IV(B)(vii), neither the Company 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.
The Company and each Underwriter each agree that any Free
Writing Prospectuses prepared by it shall contain the following
legend:
"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 issuing entity and
this offering. You may get these documents for free by
visiting XXXXX on the SEC Web site at xxx.xxx.xxx.
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
0-000-000-0000."
The Company 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 Article IV for a period of
three years following the initial bona fide offering of the
Securities.
(a) In the event that any Underwriter becomes aware
that, as of the Time of Sale, any Free Writing Prospectus
prepared by or on behalf of such Underwriter and delivered
to such investor contained any untrue statement of a
material fact or, when read in conjunction with the other
information included in the Disclosure Package, omitted to
state a material fact necessary in order to make the
statements contained therein, in the light of the
circumstances under which they were made, not misleading
(such Free Writing Prospectus, a "Defective Free Writing
Prospectus"), such Underwriter shall notify the Company
thereof within one Business Day after discovery.
(b) Provided that the Defective Free Writing
Prospectus was an Issuer Free Writing Prospectus or
contained Issuer Information, such Underwriter shall, if
requested by the Company:
Prepare a Free Writing Prospectus with
Corrective Information that corrects the material
misstatement in or omission from the Defective Free
Writing Prospectus (such corrected Free Writing
Prospectus, a "Corrected Free Writing Prospectus");
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; provided if the Time of
Sale has occurred with respect to such investor, the
Underwriter shall provide such investor with (w)
adequate disclosure of the contractual arrangement,
(x) adequate disclosure of the person's rights under
the existing contract of sale at the time termination
is sought, (y) adequate discloser of the new
information that is necessary to correct the
misstatements or omissions in the information given
at the time of the original contract of sale, and (z)
a meaningful ability to elect to terminate or not
terminate the prior contract of sale and to elect to
enter into or not enter into a new contract of sale;
and
In the event that the Defective Free Writing
Prospectus contained Issuer Information, and the
Underwriter shall in good faith incur any costs to
any investor in connection with the reformation of
the contract of sale with the investor, the Company
agrees to reimburse the Underwriter for such costs;
provided that, before incurring such costs, the
Underwriter first permit the Company access to the
applicable investor and an opportunity to attempt to
mitigate such costs through direct negotiation with
such investor.
The Underwriter covenants with the Company that after the
final Prospectus is available such Underwriter shall not
distribute any written information concerning the Securities to a
prospective investor unless such information is preceded or
accompanied by the final Prospectus.
The Underwriter covenants and agrees with the Company that
it shall not accept any offer to purchase Securities until the
time at least 24 hours after the time the related offeree
received the Preliminary Prospectus, or such shorter period as
such Underwriter and the Company shall agree.
IV.
Payment for the Securities shall be made by certified or official
bank check or checks payable to the order of the Company in immediately
available funds at the office of Xxxxxx Xxxxxxx & Co. Incorporated 0000
Xxxxxxxx, Xxx Xxxx, Xxx Xxxx 00000, at 10:00 A.M., local time, on January
31, 2006, or at such other time or place on the same or such other date, not
later than five Business Days after the date of this Agreement. Payment for
the Securities shall be made upon delivery to the Underwriter of the
Securities registered in such names and in such denominations as the
Underwriter shall request in writing not less than two full Business Days
prior to the date of delivery. The time and date of such payment and
delivery with respect to the Securities are referred to in this Agreement as
the "Closing Date."
V.
The obligations of the Underwriter under this Agreement are
subject to the following conditions:
A. Subsequent to the execution and delivery of this
Agreement and prior to the Closing Date:
(i) there shall not have occurred any downgrading, nor
shall any notice have been given of any intended or potential
downgrading, or any review for a possible change, that does not
indicate the direction of the possible change, in the rating
accorded any of the Company's securities by any "nationally
recognized statistical rating organization," as such term is
defined for purposes of Rule 436(g)(2) under the Securities Act;
(ii) there shall not have occurred any change, or any
development involving a prospective change, in the condition,
financial or otherwise, or in the earnings, business or
operations, of the Company and its subsidiaries, taken as a whole,
from that set forth in the Prospectus, that in the judgment of the
Underwriter, is material and adverse and that makes it, in the
judgment of the Underwriter, impracticable to market the
Securities on the terms and in the manner contemplated in the
Prospectus;
(iii) the Underwriter shall have received on the
Closing Date a certificate, dated the Closing Date and signed by
an executive officer of the Company, to the effect set forth in
clause (i) above and to the effect that (x) the representations
and warranties of the Company contained in this Agreement are true
and correct as of the Closing Date and that the Company has
complied with all of the agreements and satisfied all of the
conditions on its part to be performed or satisfied on or before
the Closing Date and (y) no stop order suspending the
effectiveness of the Registration Statement has been issued and no
proceedings for that purpose have been instituted or, to the
Depositor's knowledge, threatened. The officer signing and
delivering such certificate may rely upon the best of his
knowledge as to proceedings threatened; and
(v) The Underwriter shall have received on the Closing
Date a certificate or opinion of counsel of each Seller and/or
Servicer, as applicable, the Trustee, the Master Servicer and the
Securities Administrator, signed by the president or a vice
president of the respective Seller and/or Servicer, as
applicable, the Trustee, the Master Servicer and the Securities
Administrator and dated the Closing Date, to the effect that (i)
the representations and warranties of the Sellers, Servicers, the
Trustee, the Master Servicer or the Securities Administrator, as
applicable, in this Agreement, the Pooling and Servicing
Agreement, the related Mortgage Loan Purchase Agreement , the
related Servicing Agreement or related Assignment Agreement, as
applicable, are true and correct in all material respects at and
as of the Closing Date with the same effect as if made on the
Closing Date, (ii) the respective Seller and/or Servicer, as
applicable, the Trustee, the Master Servicer and the Securities
Administrator has complied with all the agreements and satisfied
all the conditions on its part to be performed or satisfied at or
prior to the Closing Date and (iii) with respect to the Seller's
Information related to the respective Seller, the Servicer's
Information related to the respective Servicer, the Trustee's
information related to the Trustee, or the Master Servicer and
Securities Administrator information related to the Master
Servicer and Securities Administrator, as applicable, nothing has
come to the attention of the signer that would lead to the signer
to believe that the Prospectus Supplement contains any untrue
statement of a material fact or omits to state any material fact
necessary in order to make the statements therein, in the light of
the circumstances under which they were made, not misleading.
"Seller's Information" refers to sections in the Prospectus
Supplement entitled "Description of the Mortgage Loans--Loan
Purchasing Guidelines and Underwriting Standards," "--Underwriting
Standards--First National Bank of Nevada" and "--Underwriting
Standards--MortgageIT, Inc.," "Servicer's Information" refers to
sections in the Prospectus Supplement entitled "The
Servicers--GMAC Mortgage Corporation," "Trustee's Information"
refers to sections in the Prospectus Supplement entitled "The
Trustee," and "Master Servicer's and Securities Administrator's
Information" refers to sections in the Prospectus Supplement
entitled "The Master Servicer and Securities Administrator."
B. The Underwriter shall have received on the Closing Date
an opinion of counsel for the Company, dated the Closing Date, to the
effect set forth in Exhibit A.
C. The Underwriter shall have received on the Closing Date
an opinion of counsel to the Underwriter in form and substance
acceptable to it.
D. The Underwriter shall have received on the Closing Date
a letter of KPMG, LLP, dated the date of this Agreement in form and
substance satisfactory to the Underwriter, regarding certain specified
procedures performed thereby with respect to information set forth in
the Prospectus.
(vi) The Underwriter shall have received from each of Xxxxx'x
Investors Services, Inc. and Standard & Poor's, a division of The
XxXxxx-Xxxx Companies, Inc. letters confirming the ratings set forth in
the Prospectus Supplement, which ratings shall not have been withdrawn.
(vii) The Underwriter shall have received from counsel for the
Trustee a favorable opinion, dated the Closing Date, in form and
substance satisfactory to the Underwriter and its counsel, to the effect
that the Pooling and Servicing Agreement has been duly authorized,
executed and delivered to the Trustee and constitutes legal, valid,
binding and enforceable agreements of the Trustee, subject, as to
enforceability, to bankruptcy, insolvency, reorganization, moratorium or
other similar laws affecting creditors' rights in general and by general
principles of equity regardless of whether
enforcement is considered in a proceeding in equity or at law, and as to
such other matters as may be agreed upon by the Underwriter and the
Trustee.
(viii) The Underwriter shall have received from counsel for
the Master Servicer and the Securities Administrator a favorable
opinion, dated the Closing Date, in form and substance satisfactory to
the Underwriter and its counsel, to the effect that the Pooling and
Servicing Agreement has been duly authorized, executed and delivered to
the Master Servicer and the Securities Administrator and constitutes
legal, valid, binding and enforceable agreements of the Master Servicer
and the Securities Administrator, subject, as to enforceability, to
bankruptcy, insolvency, reorganization, moratorium or other similar laws
affecting creditors' rights in general and by general principles of
equity regardless of whether enforcement is considered in a proceeding
in equity or at law, and as to such other matters as may be agreed upon
by the Underwriter and the Master Servicer and the Securities
Administrator.
(ix) Except as agreed to by the Underwriter, the Underwriter
shall have received from counsel to each Seller and/or Servicer, as
applicable, a favorable opinion, dated the Closing Date, in form and
substance satisfactory to the Underwriter and its counsel, to the effect
that each Mortgage Loan Purchase Agreement or Servicing Agreement and
Assignment Agreement has been duly authorized, executed and delivered by
each Seller and/or Servicer, as applicable, and constitute legal, valid,
binding and enforceable agreements of each Seller and/or Servicer, as
applicable, subject, as to enforceability, to bankruptcy, insolvency,
reorganization, moratorium or other similar laws affecting creditors'
rights in general and by general principles of equity regardless of
whether enforcement is considered in a proceeding in equity or at law,
and as to such other matters as may be agreed upon by the Underwriter
and the Sellers and/or Servicers, as applicable.
VI.
In further consideration of the agreements of the Underwriter
contained in this Agreement, the Company covenants as follows:
A. To furnish the Underwriter, without charge, a signed
copy of the Registration Statement and any amendments thereto, including
exhibits, and, during the period mentioned in paragraph C. below, as
many copies of the Prospectus and any supplements and amendments thereto
as the Underwriter may reasonably request.
B. Before amending or supplementing the Registration
Statement or the Prospectus with respect to the Securities, to furnish
the Underwriter a copy of each such proposed amendment or supplement and
not to file any such proposed amendment or supplement to which the
Underwriter reasonably objects.
C. If, during such period after the first date of the
public offering of the Securities, as in the opinion of counsel for the
Underwriter the Prospectus is required by law to be delivered in
connection with sales by the Underwriter, any event shall occur or
condition exist as a result of which it is necessary to amend or
supplement the
Prospectus in order to make the statements therein, in the light of the
circumstances when the Prospectus is delivered to a purchaser, not
misleading, or if it is necessary to amend or supplement the Prospectus
to comply with law, forthwith to prepare and furnish, at its own
expense, to the Underwriter, either amendments or supplements to the
Prospectus so that the statements in the Prospectus as so amended or
supplemented will not, in the light of the circumstances when the
Prospectus is delivered to a purchaser, be misleading or so that the
Prospectus will comply with law.
D. To endeavor to qualify the Securities for offer and
sale under the securities or Blue Sky laws of such jurisdictions as the
Underwriter shall reasonably request and to pay all expenses (including
fees and disbursements of counsel) in connection with such qualification
and in connection with the determination of the eligibility of the
Securities for investment under the laws of such jurisdictions as the
Underwriter may designate.
VII.
The Company agrees to indemnify and hold harmless the Underwriter
and each person, if any, who controls the Underwriter within the meaning of
either Section 15 of the Securities Act or Section 20 of the Exchange Act,
from and against any and all losses, claims, damages and liabilities caused
by any untrue statement or alleged untrue statement of a material fact
contained in the Registration Statement, any Free Writing Prospectus or the
Prospectus (if used within the period set forth in paragraph C. of Article
VIII and as amended or supplemented if the Company shall have furnished any
amendments or supplements thereto), or caused by 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, except insofar as
such losses, claims, damages or liabilities are caused by any such untrue
statement or omission or alleged untrue statement or omission based upon and
in conformity with information furnished in writing to the Company by the
Underwriter expressly for use or incorporation therein.
The Underwriter agrees to indemnify and hold harmless the Company
and its directors and officers who sign the Registration Statement and any
person controlling the Company within the meaning of either Section 15 of the
Securities Act or Section 20 of the Exchange Act, to the same extent as the
foregoing indemnity from the Company to the Underwriter, but only with
reference to information relating to the Underwriter furnished in writing by
the Underwriter expressly for use or incorporation in the Registration
Statement, any Free Writing Prospectus or the Prospectus.
In case any proceeding (including any governmental investigation)
shall be instituted involving any person in respect of which indemnity may be
sought pursuant to either of the two preceding paragraphs, such person (the
"indemnified party") shall promptly notify the person against whom such
indemnity may be sought (the "indemnifying party") in writing and the
indemnifying party, upon request of the indemnified 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. 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 mutually agreed to the retention of such counsel
or (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 counsel would be inappropriate due
to actual or potential differing interests between them. It is understood that
the indemnifying party shall not, in respect of the legal expenses of any
indemnified party, in connection with any proceeding or related proceedings in
the same jurisdiction, be liable for the fees and expenses of more than one
separate firm (in addition to any local counsel) for all such indemnified
parties and that all such fees and expenses shall be reimbursed as they are
incurred. Such firm shall be designated in writing by the Underwriter in the
case of parties indemnified pursuant to the first paragraph of this Article
VIII and by the Company in the case of parties indemnified pursuant to the
second paragraph of this Article VIII. The indemnifying party shall not be
liable for any settlement of any proceeding effected without its written
consent, but if settled with such consent or if there be a final judgment for
the plaintiff, the indemnifying party agrees to 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 as contemplated by the
third sentence of this paragraph, 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. No indemnifying party shall,
without the prior written consent of the indemnified party, effect any
settlement of any pending or threatened proceeding in respect of which any
indemnified party is or could have been a party and indemnity could have been
sought hereunder by such indemnified party, unless such settlement includes an
unconditional release of such indemnified party from all liability on claims
that are the subject matter of such proceeding.
To the extent the indemnification provided for in this Article
VIII is unavailable to an indemnified party under the first or second
paragraph of this Article VIII or is insufficient in respect of any losses,
claims, damages or liabilities referred to therein, then each 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 Company on the
one hand, and the Underwriter on the other, from the offering of the
Securities 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 Company on the one hand, and of the Underwriter on the
other, in connection with the statements or omissions that resulted in such
losses, claims, damages or liabilities, as well as any other relevant
equitable considerations. The relative benefits received by the Company on
the one hand, and the Underwriter on the other, in connection with the
offering of the Securities shall be deemed to be in the same proportions that
the total net proceeds from the offering of the Securities (before deducting
expenses) received by the Company and the total underwriting discounts and
commissions received by the Underwriter in respect thereof respectively, bear
to the aggregate public offering price of the Securities. The relative fault
of the Company on the one hand, and of the 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 Company or by the Underwriter and the parties'
relative intent, knowledge, access to information and opportunity to correct
or prevent such statement or omission.
The Company and the Underwriter agree that it would not be just
and equitable if contribution pursuant to this Article VIII were determined
by pro rata allocation or by any other method of allocation that does not
take account of the considerations referred to in the immediately preceding
paragraph. The amount paid or payable by an indemnified party as a result of
the losses, claims, damages and liabilities referred to in the immediately
preceding paragraph 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 or defending any such
action or claim. Notwithstanding the provisions of this Article VIII, the
Underwriter shall not be required to contribute any amount in excess of the
amount by which the total underwriting discounts and commissions received by
the Underwriter in connection with the Securities underwritten and
distributed to the public by the Underwriter exceeds the amount of any
damages that the 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 Securities Act) shall be entitled to contribution from any
person who was not guilty of such fraudulent misrepresentation.
The indemnity and contribution agreements contained in this
Article VIII and the representations and warranties of the Company in this
Agreement shall remain operative and in full force and effect regardless of
(i) any termination of this Agreement, (ii) any investigation made by or on
behalf of the Underwriter or any person controlling the Underwriter or by or
on behalf of the Company, its directors or officers or any person controlling
the Company and (iii) acceptance of any payment for any of the Securities.
(x)
This Agreement shall be subject to termination in the
Underwriter's absolute discretion, by notice given to the Company, 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, as the case may be, any of the New York Stock Exchange, the
American Stock Exchange, the National Association of Securities Dealers,
Inc., the Chicago Board of Options Exchange, the Chicago Mercantile Exchange
or the Chicago Board of Trade, (ii) trading of any securities of the Company
shall have been suspended on any exchange or in any over-the-counter market,
(iii) a general moratorium on commercial banking activities in New York shall
have been declared by either Federal or New York State authorities, or (iv)
there shall have occurred any outbreak or escalation of hostilities or any
change in financial markets or any calamity or crisis that, in the judgment
of the Underwriter, is material and adverse and (b) in the case of any of the
events specified in clauses (a)(i) through (iv), such event singly or
together with any other such event, makes it, in the judgment of the
Underwriter, impracticable to market the Securities on the terms and in the
manner contemplated in the Prospectus.
VIII.
The Company acknowledges that in connection with the offering of
the Securities: (a) the Underwriter has acted at arms length, is not an
agent of, and owes no fiduciary duty to, the Company or any other person, (b)
the Underwriter owes the Company only those duties and obligations set forth
in this Agreement and (c) the Underwriter may have interests that differ from
those of the Company. The Company waives to the full extent permitted by
applicable law any claims it may have against the Underwriter arising from an
alleged breach of fiduciary duty in connection with the offering of the
Securities.
IX.
In relation to each Member State of the European Economic Area
which has implemented the Prospectus Directive (each, a "Relevant Member
State"), the Underwriter has represented and agreed that with effect from and
including the date on which the Prospectus Directive is implemented in that
Relevant Member State (the "Relevant Implementation Date") it has not made
and will not make an offer of certificates to the public in that Relevant
Member State prior to the publication of a prospectus in relation to the
Securities 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 it may,
with effect from and including the Relevant Implementation Date, make an
offer of Securities 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 issuer of a prospectus pursuant to Article 3 of the Prospectus
Directive.
For the purposes of this provision, the expression an "offer of
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.
X.
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 Securities, represents the entire agreement between the
Company, on the one hand, and the Underwriter, on the other, with respect to
the preparation of the Prospectus, and the conduct of the offering, and the
purchase and sale of the Securities.
XI.
If this Agreement shall be terminated by the Underwriter because
of any failure or refusal on the part of the Company to comply with the terms
or to fulfill any of the conditions of this Agreement, or if for any reason
the Company shall be unable to perform its obligations under this Agreement,
the Company will reimburse the Underwriter for all out-of-pocket expenses
(including the fees and disbursements of its counsel) reasonably incurred by
the Underwriter in connection with the Securities.
This Agreement may be signed in any number of counterparts, each
of which shall be an original, with the same effect as if the signatures
thereto and hereto were upon the same instrument.
This Agreement shall be governed by and construed in accordance
with the laws of the State of New York.
Very truly yours,
XXXXXX XXXXXXX CAPITAL I INC.
By: /s/ Xxxxxx Xxxxxxx
-------------------------------
Name: Xxxxxx Xxxxxxx
Title: Vice President
Accepted and agreed to by:
XXXXXX XXXXXXX & CO. INCORPORATED,
as representative
By: /s/ Xxxxxx Xxxxxxx
-------------------------------
Name: Xxxxxx Xxxxxxx
Title: Executive Director
SCHEDULE A
Class Principal Amount ($) Maturity Date Interest Rate (%)
----- -------------------- ------------- -----------------
1-A $53,524,000 January 2036 5.250%
1-A-X Notional (1) January 2036 5.250%
1-A-P $291,736 January 2036 (1)
2-A-1 $54,000,000 January 2036 Floating Rate (1)
2-A-2 Notional (1) January 2036 Inverse Floating
Rate (1)
2-A-3 $70,674,000 January 2036 5.750%
2-A-4 $15,100,000 January 2036 5.750%
2-A-X Notional (1) January 2036 5.750%
2-A-P $982,531 January 2036 (1)
3-A $17,402,000 January 2036 5.500%
4-A $30,687,000 January 2036 6.000%
4-A-X Notional (1) January 2036 6.000%
5-A-1 $35,000,000 January 2036 5.500%
5-A-2 $45,673,000 January 2036 5.500%
5-A-3 $65,250,000 January 2036 5.500%
5-A-4 $5,000,000 January 2036 5.500%
6-A $77,849,000 January 2036 6.500%
6-A-X Notional (1) January 2036 6.500%
7-A-1 $31,903,000 January 2036 Variable (1)
7-A-2 $3,545,000 January 2036 Variable (1)
M-1 $9,609,000 January 2036 Variable (1)
M-2 $3,470,000 January 2036 Variable (1)
M-3 $3,470,000 January 2036 Variable (1)
M-4 $1,335,000 January 2036 Variable (1)
M-5 $2,402,000 January 2036 Variable (1)
M-6 $1,068,000 January 2036 Variable (1)
Sch. A-1
A-R $100 January 2036 5.250%
-------------
(1) Please refer to page iv of the Prospectus Supplement for a description
of the pass-through rate for each Class of Certificates.
SCHEDULE B
EXHIBIT A
OPINION OF SIDLEY AUSTIN, COUNSEL FOR THE COMPANY
The opinion of Sidley Austin LLP, counsel for the Company, to be
delivered pursuant to Article VI, paragraph B. of the document entitled
Xxxxxx Xxxxxxx Capital I Inc. Underwriting Agreement shall be to the effect
that:
1. The Company is validly existing as a corporation in good
standing under the laws of the State of Delaware.
2. The Company has the corporate power and corporate authority
to carry on its business as described in the Prospectus and to own and
operate its properties in connection therewith.
3. The Underwriting Agreement has been duly authorized,
executed and delivered by the Company.
4. Each of the Mortgage Loan Purchase Agreement and the
Pooling and Servicing Agreement has been duly authorized, executed and
delivered by the Company and each is a valid and binding obligation of the
Company, enforceable against the Company in accordance with its terms, except
that (A) such enforcement is subject to bankruptcy, insolvency,
reorganization, moratorium or other similar laws now or hereafter in effect
relating to creditors' rights generally and (B) such enforcement may be
limited by general principles of equity (regardless of whether enforcement is
sought in a proceeding in equity or at law).
5. The execution and delivery by the Company of the
Underwriting Agreement, the Mortgage Loan Purchase Agreement and the Pooling
and Servicing Agreement and the signing of the Registration Statement by the
Company are within the corporate power of the Company and have been duly
authorized by all necessary corporate action on the part of the Company; and
neither the issuance and sale of the Certificates, nor the consummation of
the transactions contemplated in the Underwriting Agreement nor the
fulfillment of the terms of such Underwriting Agreement will (i) result in
any violation of the provisions of the certificate of incorporation or
by-laws of the Company or, to the best of our knowledge, any New York or
federal law, administrative regulation or administrative or court decree
applicable to the Company or (ii) constitute a default under any material
contract known to us to which the Company is a party; provided that for
purposes of this clause (ii) we have not been asked to perform and have not
performed in any independent investigation.
6. The Public Certificates have been duly authorized by the
Company and, when executed and authenticated as specified in the Pooling and
Servicing Agreement and delivered and paid for pursuant to the Underwriting
Agreement and the Pooling and Servicing Agreement, will be duly issued and
entitled to the benefits of the Pooling and Servicing Agreement.
7. To the best of our knowledge, no filing or registration
with or notice to or consent, approval, authorization or order of any New
York or federal court or governmental authority or agency is required for the
consummation by the Company of the transactions contemplated by the
Underwriting Agreement, except such as have been obtained under the 1933 Act
or such as may be required under state securities or Blue Sky laws.
8. The Registration Statement is effective under the 1933 Act
and, to the best of our knowledge and information, no stop order suspending
the effectiveness of the Registration Statement has been issued under the
1933 Act or proceedings therefor initiated or threatened by the Commission.
9. The Pooling and Servicing Agreement is not required to be
qualified under the Trust Indenture Act of 1939, as amended.
10. The statements in the Prospectus under the headings
"Federal Income Tax Consequences" and "ERISA Considerations" to the extent
that they constitute matters of law or legal conclusions with respect
thereto, have been prepared or reviewed by us and are correct in all material
respects.
11. The Trust Fund created by the Pooling and Servicing
Agreement is not required to register as an "investment company" under the
Investment Company Act of 1940, as amended.
12. The statements in the Prospectus under the caption
"Description of the Certificates," insofar as such statements purport to
summarize certain terms of the Certificates and certain provisions of the
Pooling and Servicing Agreement, constitute a fair summary of such terms and
provisions in all material respects.
13. The Registration Statement, as of the date it became
effective, and the Prospectus, as of the date thereof (other than the
financial statements and other financial, statistical and numerical
information included therein, as to which no opinion is rendered), appeared
on its face to be appropriately responsive in all material respects to the
applicable requirements of the 1933 Act and the rules and regulations
thereunder.
14. The Public Certificates will be mortgage related
securities, as defined in Section 3(a)(41) of the Securities Exchange Act of
1934, as amended, so long as such Certificates are rated in one of the two
highest rating categories by at least one nationally recognized statistical
rating organization.
