FIRST NATIONAL MASTER NOTE TRUST $[ ] CLASS A [FLOATING RATE [ ]%] SERIES [20 ]-[•] ASSET BACKED NOTES [$[ ] CLASS B [FLOATING RATE [ ]%] SERIES [20 ]-[•] ASSET BACKED NOTES] [$[ ] CLASS C [FLOATING RATE [ ]%] SERIES [20 ]-[•] ASSET BACKED NOTES]...
Exhibit 1.1
$[ ] CLASS A [FLOATING RATE [ ]%] SERIES [20 ]-[•]
ASSET BACKED NOTES
ASSET BACKED NOTES
[$[ ] CLASS B [FLOATING RATE [ ]%] SERIES [20 ]-[•]
ASSET BACKED NOTES]
ASSET BACKED NOTES]
[$[ ] CLASS C [FLOATING RATE [ ]%] SERIES [20 ]-[•]
ASSET BACKED NOTES]
ASSET BACKED NOTES]
[•]
[•], 20[ ]
[ ]
[ ]
each acting on behalf of itself and
as Representative of the several
Underwriters named in Schedule A hereto
(together, the “Representatives”)
as Representative of the several
Underwriters named in Schedule A hereto
(together, the “Representatives”)
Ladies and Gentlemen:
1. Introductory. First National Funding LLC (“FNF LLC” or the
“Transferor”), a limited liability company formed under the laws of the State of Nebraska,
proposes to cause First National Master Note Trust (the “Issuer”) to issue and sell $[ ]
principal amount of Class A Series [20 ]-[•] Asset Backed Notes [(the “Notes”)] [(the
“Class A Notes”)] [,$[ ] principal amount of Class B Series [20 ]-[•] Asset Backed
Notes (the “Class B Notes”)] [and $[ ] principal amount of Class C Series [20 ]-[•]
Asset Backed Notes (the “Class C Notes”, and together with the Class A Notes and the Class
B Notes, the “Notes”)], to the Underwriters (as defined hereinafter) for whom you are
acting as Representatives.
[One or more of the underwriters for the [Notes] [Class A Notes] listed on Schedule A hereto
(the “Underwriters”) is a financial institution appearing on the Federal Reserve Bank of
New York’s list of Primary Government Securities Dealers Reporting to the Government Securities
Dealers Statistics Unit of the Federal Reserve Bank of New York (each such financial institution, a
“TALF Agent”) [or is a broker-dealer who has been specifically designated by the FRBNY as a
TALF Agent], and may be a party to that certain Master Loan and Security Agreement among the
Federal Reserve Bank of New York (the “FRBNY”), as Lender, various
TALF Agents from time to time party thereto, each on behalf of itself and its respective
customers as borrowers thereunder from time to time, and The Bank of New York Mellon, as
Administrator, and The Bank of New York Mellon, as Custodian (the “MLSA”), in connection
with the Term Asset-Backed Securities Loan Facility (“TALF”). To the extent expressly
provided in this Agreement, and subject to the limitations in Section 10, certain of the rights,
benefits and remedies of the Underwriters under this Agreement will be for the benefit of, and will
be enforceable by, each Underwriter not only in such capacity but also in its capacity as a TALF
Agent and as a signatory to the MLSA.]
The Issuer is a Delaware statutory trust formed pursuant to (a) a Trust Agreement, dated as of
October 16, 2002 (the “Trust Agreement”), between the Transferor and Wilmington Trust
Company (“WTC”), as owner trustee (the “Owner Trustee”) and (b) the filing of a
certificate of trust with the Secretary of State of Delaware on October 16, 2002. The Notes will
be issued pursuant to a Master Indenture, dated as of October 24, 2002 (as amended, the “Master
Indenture”), between the Issuer and The Bank of New York Mellon Trust Company, N.A. (formerly
known as the Bank of New York Trust Company, N.A. and successor to The Bank of New York)
(“BNYMTC”), as indenture trustee (the “Indenture Trustee”), as supplemented by the
Series [20 ]-[•] Indenture Supplement with respect to the Notes to be dated as of the Closing Date
(as defined below) (the “Indenture Supplement,” and together with the Master Indenture, the
“Indenture”).
The assets of the Issuer include, among other things, certain amounts due (the
“Receivables”) on a portfolio of Visa® and MasterCard® revolving credit card accounts owned
by the Bank (the “Accounts”).
The Receivables are transferred to the Issuer pursuant to the Transfer and Servicing
Agreement, dated as of October 24, 2002 (as amended, the “Transfer and Servicing
Agreement”), among the Transferor, First National Bank of Omaha, a national banking association
(the “Bank”), as servicer (the “Servicer”) and the Issuer. The Receivables
transferred to the Issuer by the Transferor are acquired by the Transferor from the Bank pursuant
to a Receivables Purchase Agreement, dated as of October 24, 2002 (as amended, the “Receivables
Purchase Agreement”), between the Transferor and the Bank.
The Bank has agreed to provide notices and perform on behalf of the Issuer certain other
administrative obligations required by the Transfer and Servicing Agreement, the Master Indenture
and each indenture supplement for each series of notes issued by the Issuer, pursuant to an
Administration Agreement, dated as of October 24, 2002 (as amended, the “Administration
Agreement”), between the Bank, as administrator (in such capacity, the
“Administrator”), and the Issuer. The Transfer and Servicing Agreement, the Receivables
Purchase Agreement, the Indenture, the Trust Agreement and the Administration Agreement are
referred to herein, collectively, as the “Transaction Documents.”
This Underwriting Agreement is referred to herein as this “Agreement.” To the extent
not defined herein, capitalized terms used herein have the meanings assigned in the Transaction
Documents.
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The Transferor has prepared and filed with the Securities and Exchange Commission (the
“Commission”) in accordance with the provisions of the Securities Act of 1933 (the
“Act”), (i) a registration statement on Form S-3 (having the registration number
333-163856), including a form of prospectus and a form of prospectus supplement and such amendments
thereto as may have been filed prior to the date hereof, relating to the Notes and the offering
thereof in accordance with Rule 415 under the Act. If any post-effective amendment to such
registration statement has been filed with respect thereto, prior to the execution and delivery of
this Agreement, the most recent such amendments have been declared effective by the Commission.
For purposes of this Agreement, “Effective Time” means the date and time as of which each
such registration statement, or the most recent post-effective amendment thereto, if any, was
declared effective by the Commission, and “Effective Date” means the date of the Effective
Time. Such registration statement, as amended at the Effective Time, including all material
incorporated by reference therein and including all information (if any) deemed to be part of the
registration statement at the time of effectiveness pursuant to Rule 430B under the Act is referred
to in this Agreement as the “Registration Statement.” The Registration Statement has been
declared effective by the Commission not more than three years prior to the date hereof.
The Transferor proposes to file with the Commission pursuant to Rule 424(b) under the Act
(“Rule 424(b)”) a supplement (the “Prospectus Supplement”) to the prospectus
included in the Registration Statement (such prospectus, in the form it appears in the Registration
Statement, or in the form most recently revised and filed with the Commission pursuant to Rule
424(b), is hereinafter referred to as the “Base Prospectus”) relating to the Notes and the
method of distribution thereof. The Base Prospectus and the Prospectus Supplement, together with
any amendment thereof or supplement thereto, together with the information referred to under the
caption “Static Pool Information” in the Prospectus Supplement regardless of whether it is
deemed a part of the Prospectus Supplement, are hereinafter referred to as the
“Prospectus”.
At or prior to [•] a.m/p.m. (New York City Time) on [•][•], [20 ] (the time the first
Contract of Sale (as defined below) was entered into as designated by the Representatives (the
“Time of Sale”), the Transferor also had prepared a Preliminary Prospectus dated [•][•],
[20 ], with respect to such Notes (together with the Additional Information, the “Time of Sale
Information”). “Preliminary Prospectus” means, with respect to any date or time
referred to herein, the most recent preliminary Prospectus (as amended or supplemented, if
applicable), which has been prepared and delivered by the Transferor to the Representatives in
accordance with the provisions hereof, together with the information referred to under the caption
“Static Pool Information” therein regardless of whether it is deemed a part of the
Registration Statement or the Prospectus. “Additional Information” means information that
is included in any road show presentation the Transferor has approved.
If, subsequent to the Time of Sale and prior to the Closing Date, the Time of Sale Information
included an untrue statement of material fact or omitted to state a material fact necessary in
order to make the statements therein, in the light of the circumstances under which they were made,
not misleading and the Transferor and the Bank have prepared and delivered to the Underwriters a
Corrected Prospectus (as defined below), and as a result investors in the Notes elect to terminate
their existing “Contracts of Sale” (within the meaning of Rule 159 under the Act) for any
Notes and enter into new Contracts of Sale with the Underwriters, then “Time of Sale
Information” will refer to the information conveyed to investors at the time of entry into the
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first such new Contract of Sale in an amended Preliminary Prospectus approved by the
Transferor and the Representatives that corrects such material misstatements or omissions (a
“Corrected Prospectus”), together with the Additional Information, and “Time of
Sale” will refer to the time and date on which such new Contracts of Sale were entered into.
As used herein, references to any “Free Writing Prospectus” shall mean a “free writing
prospectus” as defined in Rule 405 of the Act.
The Transferor and the Bank hereby agree, severally and not jointly, with the Underwriters as
follows:
2. Representations and Warranties of the Transferor and the Bank. Each of the
Transferor (the representations and warranties as to the Transferor being given by the Transferor)
and the Bank (the representations and warranties as to the Bank being given by the Bank) represents
and warrants to, and agrees [(i) with, the Underwriters][, and (ii) with respect to clauses
(n)(ii), (r), (s), (aa) and (bb) of this Section 2 only, with the Underwriters who are TALF Agents
in their capacities as TALF Agents with respect to TALF loans secured by the [Notes] [Class A
Notes]], that:
(a) The Transferor is duly organized, validly existing and in good standing as a
limited liability company under the laws of the State of Nebraska, and has all requisite
power, authority and legal right to own its property, transact the business in which it is
now engaged and conduct its business as described in the Registration Statement, the
Preliminary Prospectus and the Prospectus, and to execute, deliver and perform its
obligations under this Agreement, the Transfer and Servicing Agreement, the Receivables
Purchase Agreement and the Trust Agreement and to authorize the issuance of the Notes.
(b) The Bank is a national banking association duly organized, validly existing and in
good standing under the laws of the United States, and has all requisite power, authority
and legal right to own its property and conduct its credit card business as such properties
are presently owned and such business is presently conducted, and conduct its business as
described in the Registration Statement, the Preliminary Prospectus and the Prospectus, and
to own the Accounts and to execute, deliver and perform its obligations under this
Agreement, the Receivables Purchase Agreement, the Transfer and Servicing Agreement and the
Administration Agreement.
(c) The execution, delivery and performance of each of the Transaction Documents to
which it is a party, and the incurrence of the obligations herein and therein set forth and
the consummation of the transactions contemplated hereby and thereby, and with respect to
the Transferor, the issuance of the Notes, have been duly and validly authorized by the
Transferor and the Bank, as applicable, by all necessary action on the part of the
Transferor and the Bank, as applicable.
(d) This Agreement has been duly authorized, executed and delivered by the Transferor
and the Bank.
(e) Each of the Transaction Documents has been, or on or before the Closing Date will
be, executed and delivered by the Transferor and/or the Bank, as applicable,
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and when executed and delivered by the other parties thereto, will constitute a legal,
valid and binding agreement of the Transferor and/or the Bank, as applicable, enforceable
against the Transferor and/or the Bank, as applicable, in accordance with its terms, except,
in each case, to the extent that (i) the enforceability thereof may be subject to
bankruptcy, insolvency, reorganization, moratorium, receivership or other similar laws now
or hereafter in effect relating to creditors’ or other obligees’ rights generally or the
rights of creditors or other obligees of institutions insured by the FDIC, (ii) the 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 and (iii) certain remedial provisions of the Indenture may be unenforceable
in whole or in part under the UCC, but the inclusion of such provisions does not render the
other provisions of the Indenture invalid and notwithstanding that such provisions may be
unenforceable in whole or in part, the Indenture Trustee, on behalf of the Noteholders, will
be able to enforce the remedies of a secured party under the UCC.
(f) The Notes have been duly authorized and will be issued pursuant to the terms of the
Indenture and, when executed by the Owner Trustee on behalf of the Issuer and authenticated
by the Indenture Trustee in accordance with the Indenture and delivered pursuant to the
Indenture and this Agreement, will be duly and validly executed, issued and outstanding and
will constitute legal, valid and binding obligations of the Issuer, enforceable against the
Issuer in accordance with their terms, subject to (A) the effect of bankruptcy, insolvency,
moratorium, receivership, reorganization, liquidation and other similar laws affecting
creditors’ rights generally, (B) the effect of general principles of equity including
(without limitation) concepts of materiality, reasonableness, good faith, fair dealing
(regardless of whether considered and applied in a proceeding in equity or at law), and also
to the possible unavailability of specific performance or injunctive relief, and (C) the
unenforceability under certain circumstances of provisions indemnifying a party against
liability or requiring contribution from a party for liability where such indemnification or
contribution is contrary to public policy. The Notes will be in the form contemplated by
the Indenture, and the Notes and the Indenture will conform to the descriptions thereof
contained in the Preliminary Prospectus, the Prospectus and the Registration Statement, as
amended or supplemented.
(g) [Reserved].
(h) Neither the Transferor nor the Bank is in violation of any Requirement of Law or in
default in the performance or observance of any obligation, agreement, covenant or condition
contained in any contract, indenture, mortgage, deed of trust, loan agreement, note, lease
or other instrument to which it is a party or by which it is bound or to which any of its
property is subject, which violation or defaults separately or in the aggregate would have a
material adverse effect on the Issuer, the Transferor or the Bank.
(i) None of the issuance and sale of the Notes or the execution and delivery by the
Transferor or the Bank of this Agreement or any Transaction Document to which it is a party,
nor the incurrence by the Transferor or the Bank of the obligations herein and therein set
forth, nor the consummation of the transactions contemplated hereunder
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or thereunder, nor the fulfillment of the terms hereof or thereof does or will (i)
violate any Requirement of Law presently in effect, applicable to it or its properties or by
which it or its properties are or may be bound or affected, (ii) breach or violate any
provision of the organizational documents applicable to the Transferor or the Bank, (iii)
violate any judgment, order or decree of any court, arbitrator, administrative agency or
other governmental authority applicable to the Transferor or the Bank, (iv) conflict with,
or result in a breach of, or constitute a default under, any indenture, contract, agreement,
mortgage, deed of trust or instrument to which it is a party or by which it or its
properties are bound, (v) result in the acceleration of any obligation of the Transferor or
the Bank, or (vi) result in the creation or imposition of any Lien upon any of its property
or assets, except for those encumbrances created under the Transaction Documents.
(j) All approvals, authorizations, consents, orders and other actions of any Person or
of any court or other governmental body or official required in connection with the
execution and delivery by the Transferor or the Bank of this Agreement or the Transaction
Documents to which it is a party or the consummation of the transactions contemplated
hereunder and thereunder, or the fulfillment of the terms hereof and thereof have been or
will have been obtained on or before the Closing Date.
(k) All actions required to be taken by the Transferor or the Bank as a condition to
the offer and sale of the Notes as described herein or the consummation of any of the
transactions described in the Preliminary Prospectus, the Prospectus and the Registration
Statement have been or, prior to the Closing Date, will be taken.
(l) The Master Indenture has been duly qualified under the Trust Indenture Act of 1939,
as amended (the “TIA”), and complies as to form with the TIA and the rules and
regulations of the Securities and Exchange Commission (the “Commission”) thereunder.
The Indenture Supplement is not required to be qualified under the TIA.
(m) The representations and warranties made by the Transferor in the Transfer and
Servicing Agreement, the Trust Agreement and the Receivables Purchase Agreement or made in
any Officer’s Certificate of the Transferor delivered pursuant to any Transaction Document
to which it is a party will be true and correct at the time made and on and as of the
Closing Date as if set forth herein, except that to the extent that any such representation
or warranty expressly relates to an earlier or later date, such representation or warranty
is true and correct at and as of such earlier or later date.
(n) The representations and warranties made by the Bank [(i)] in the Receivables
Purchase Agreement, and in its capacity as Servicer and Administrator, in the Transfer and
Servicing Agreement and the Administration Agreement, respectively, or made in any Officer’s
Certificate of the Bank delivered pursuant to any Transaction Document to which it is a
party[, and (ii) in the TALF Certification (as defined in subsection 7(q))] will be true and
correct at the time made and on and as of the Closing Date as if set forth herein, except
that to the extent that any such representation or warranty expressly relates to an earlier
or later date, such representation or warranty is true and correct at and as of such earlier
or later date.
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(o) The Transferor agrees it has not granted, assigned, pledged or transferred and
shall not grant, assign, pledge or transfer to any Person a security interest in, or any
other right, title or interest in, the Receivables, except as provided in the Transfer and
Servicing Agreement, and agrees to take all action required by the Transfer and Servicing
Agreement in order to maintain the security interest in the Receivables granted pursuant to
the Transfer and Servicing Agreement and the Indenture, as applicable.
(p) The Bank agrees it has not granted, assigned, pledged or transferred and shall not
grant, assign, pledge or transfer to any Person a security interest in, or any other right,
title or interest in, the Receivables, except as provided in the Receivables Purchase
Agreement and agrees to take all action required by the Receivables Purchase Agreement in
order to maintain the security interests in the Receivables granted pursuant to the
Receivables Purchase Agreement, the Transfer and Servicing Agreement and the Indenture, as
applicable.
(q) (i) 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. No stop
order suspending the effectiveness of the Registration Statement has been issued, and no
proceeding for that purpose has been instituted or threatened by the Commission.
(ii) As of the Closing Date, the Registration Statement, the Preliminary
Prospectus and the Prospectus, except with respect to any modification as to which
the Representatives have been notified, shall be in all substantive respects in the
form furnished to the Representatives or its counsel before such date.
(r) On the Effective Date, the Registration Statement did conform in all material
respects to the applicable requirements of the Act and the rules and regulations of the
Commission thereunder (the “Rules and Regulations”) and the TIA and the rules and
regulations thereunder and did not 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. The Preliminary Prospectus, as of its date, as of the Time of Sale
and on the date of this Agreement conforms, and at the time of filing of the Preliminary
Prospectus pursuant to Rule 424(b), the Preliminary Prospectus will conform, in all material
respects with the requirements of the Act and the Rules and Regulations and the TIA and the
rules and regulations thereunder and it does not include, nor will include, any untrue
statement of a material fact nor omits, or will omit, to state any material fact required to
be stated therein or necessary to make the statements therein not misleading, except that
the foregoing does not apply to statements in or omissions from the Preliminary Prospectus
in reliance upon and in conformity with Underwriters’ Information (as defined below). On
the date of this Agreement, the Registration Statement and the Prospectus conform, and at
the time of filing of the Prospectus pursuant to Rule 424(b), the Registration Statement and
the Prospectus will conform, in all material respects with the requirements of the Act and
the Rules and Regulations and the TIA and the rules and regulations thereunder. Neither of
such documents, as of its date, as of the date of this Agreement and as of the Closing Date,
includes, or will
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include, any untrue statement of a material fact or omits, or will omit, to state any
material fact required to be stated therein or necessary to make the statements therein not
misleading, except that the foregoing does not apply to statements in or omissions from
either of such documents based upon Underwriters’ Information (as defined below). Each of
the Transferor and the Bank hereby acknowledges that the statements set forth (i) on the
cover page of the Prospectus Supplement on the line across from “Price to public,” (ii) in
the table listing the Class A Underwriters and the Principal Amount of Class A Notes under
the heading “Underwriting” in the Prospectus Supplement, [(iii) in the table listing the
Class B Underwriters and the Principal Amount of Class B Notes under the heading
“Underwriting” in the Prospectus Supplement] [, (iv) in the table listing the Class C
Underwriters and the Principal Amount of Class C Notes under the heading “Underwriting” in
the Prospectus Supplement] [(iii)] [(v)] in the table following the [second] paragraph under
the heading “Underwriting” in the Prospectus Supplement and the Preliminary Prospectus
Supplement and [(iv)] [(vi)] in the [penultimate] paragraph under the heading “Underwriting”
in the Prospectus Supplement and the Preliminary Prospectus Supplement (such information,
the “Underwriters’ Information”) constitute the only information furnished in
writing by or on behalf of the Underwriters for inclusion in the Prospectus or the
Preliminary Prospectus.
(s) The Time of Sale Information at the Time of Sale did not, and at the Closing Date
will not, 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, in light of the
circumstances under which they were made, not misleading (it being understood that no
representation or warranty is made with respect to the omission of pricing and
price-dependent information, which information shall of necessity appear only in the final
Prospectus); provided, that this representation and warranty shall not apply to any
statements or omissions made in reliance upon and in conformity with information contained
in or omitted from either the Registration Statement or the Prospectus based upon
Underwriters’ Information.
(t) Other than with respect to the Preliminary Prospectus, the Prospectus and any
Additional Information approved by the Representatives, each of the Transferor, the Bank and
the Issuer (including its agents and representatives) has not made, used, authorized or
approved and will not make, use, authorize or approve any “written communication”
(as defined in Rule 405 under the Act) that constitutes an offer to sell or solicitation of
any offer to buy the Notes. The Transferor will file with the Commission any Free Writing
Prospectus used by the Transferor, the Bank or the Issuer if such filing is required by Rule
433(d) of the Act. If required by Rule 433(c)(2)(i) of the Act, each Free Writing
Prospectus used by the Transferor, the Bank or the Issuer shall contain a legend
substantially in the form of and in compliance with Rule 433(c)(2)(i) of the Act, and shall
otherwise conform to any requirements for “free writing prospectuses” under the Act.
(u) Since the respective dates as of which information is given in the Registration
Statement, the Preliminary Prospectus and the Prospectus, except as otherwise set forth
therein, there has not been any material adverse change in the
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condition, financial or otherwise, or in the earnings, business or operations, of the
Bank or the Transferor.
(v) The computer tape of the Receivables to be created as of [•][•], [20 ], and made
available to the Representatives by the Servicer, will be complete and accurate in all
material respects as of the date thereof.
(w) There are no actions, proceedings or investigations pending or, to the best of its
knowledge, threatened against or affecting the Transferor or the Bank (or any basis therefor
known to the Transferor or the Bank) (i) asserting the invalidity of any of the Transaction
Documents, (ii) seeking to prevent the issuance of the Notes or the consummation by the
Transferor or the Bank of any of the transactions contemplated by the Transaction Documents,
or (iii) which, individually or in the aggregate, if adversely decided, would materially and
adversely affect the business, financial condition or results of operations of the
Transferor, the Issuer or the Bank or of the Transferor’s or the Bank’s ability to
consummate the transactions contemplated by the Transaction Documents.
(x) None of the Issuer, the Transferor, the Bank, any Affiliates thereof or any of
their agents has taken any action that would require registration of the Issuer, the
Transferor or the Bank under the Investment Company Act of 1940, nor will the Issuer, the
Transferor, the Bank, any Affiliates thereof or any of their agents act, nor have they
authorized or will they authorize any person to act, in such a manner.
(y) [Reserved].
(z) The Transferor was not, on the date on which the first bona fide offer of the Notes
sold pursuant to this Agreement was made, an “ineligible issuer” as defined in Rule
405 under the Act.
(aa) [On the Closing Date, (i) the Transferor and the Bank will have taken all actions
(and caused the Issuer to take all actions) required to be taken by such entities by the
FRBNY for the [Notes] [Class A Notes] to be eligible collateral under the TALF, and (ii) the
[Notes] [Class A Notes] will be eligible collateral under the TALF; provided, however, that
neither the Transferor nor the Bank makes any representation or warranty with respect to the
eligibility of a borrower for a loan under the TALF or whether any borrower has taken or its
agents have taken the steps necessary to qualify for any such loan. ]
(bb) [The Issuer or the Bank has received an indication from the FRBNY that the Notes
satisfy the FRBNY’s risk assessment requirements under TALF, which indication has not been
revised or revoked as of the Closing Date.]
(a) On the basis of the representations, warranties and agreements herein contained,
but subject to the terms and conditions herein set forth, the Transferor agrees to sell to
the [Class A] Underwriters, and the [Class A] Underwriters, severally and not
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jointly, agree to purchase from the Transferor, at a purchase price of [•]% of the
principal amount thereof, $[•] aggregate principal amount of the [Notes] [Class A Notes],
each [Class A] Underwriter to purchase the amounts shown on Schedule A hereto.
(b) [On the basis of the representations, warranties and agreements herein contained,
but subject to the terms and conditions herein set forth, the Transferor agrees to sell to
the Class B Underwriters, and the Class B Underwriters, severally and not jointly, agree to
purchase from the Transferor, at a purchase price of [•]% of the principal amount thereof,
$[•] aggregate principal amount of the Class B Notes, each Class B Underwriter to purchase
the amounts shown on Schedule A hereto.]
(c) [On the basis of the representations, warranties and agreements herein contained,
but subject to the terms and conditions herein set forth, the Transferor agrees to sell to
the Class C Underwriters, and the Class C Underwriters, severally and not jointly, agree to
purchase from the Transferor, at a purchase price of [•]% of the principal amount thereof,
$[•] aggregate principal amount of the Class C Notes, each Class C Underwriter to purchase
the amounts shown on Schedule A hereto.]
(d) The Transferor will cause the Issuer to deliver the Notes to the Underwriters
against payment of the purchase price in immediately available funds, drawn to the order of
the Transferor, at the office of Xxxxx Xxxx LLP, in Omaha, Nebraska at 10:00 a.m., Chicago
time, on [•] [•], [20 ], such time being herein referred to as the “Closing Date.”
Each of the Notes so to be delivered shall be represented by one or more definitive notes
registered in the name of Cede & Co., as nominee for The Depository Trust Company. The
Notes will be available for inspection, checking and packaging by the Underwriters at the
office at which the Notes are to be delivered in Omaha, Nebraska no later than 4:00 p.m.,
Chicago time, on the business day prior to the Closing Date.
(e) [Notwithstanding the foregoing, the obligation of the Transferor to sell the Notes
to the Underwriters shall be subject to the Transferor receiving letters from the applicable
Rating Agency stating that the notes designated in the Indenture Supplement as the “Class B
Asset Backed Notes, Series [20 ]-[•]” (the “Class B Notes”) shall have received
ratings of [“A,”] [“A2 ”] and [“A,”] from [Standard & Poor’s Ratings Services,] [Xxxxx’x
Investors Service, Inc.] and [DBRS, Inc.], respectively, and the notes designated in the
Indenture Supplement as the “Class C Asset Backed Notes, Series [20 ]-[•]” (the “Class
C Notes”) shall have received ratings of [“BBB,”] [“BBB”] and [“BBB,”] from [Standard &
Poor’s Ratings Services] [Fitch, Inc.] and [DBRS, Inc.], respectively.]
(a) It is understood that after the Effective Date, each Underwriter proposes to offer
the Notes for sale to the public (which may include selected dealers) as set forth in the
Prospectus.
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(b) Each Underwriter shall comply with all applicable laws and regulations in
connection with its use of Free Writing Prospectuses, including but not limited to Rules 164
and 433 of the Act.
(c) Other than the Preliminary Prospectus, Prospectus, the Additional Information and
other information approved by the Transferor, each Underwriter represents, warrants and
agrees with the Transferor and the Bank that it has not made, used, prepared, authorized,
approved or referred to and will not make, use, prepare, authorize, approve or refer to any
“written communication” (as defined in Rule 405 under the Act) that constitutes an offer to
sell or solicitation of an offer to buy the Notes, including, but not limited to, any “ABS
informational and computational materials” as defined in Item 1101(a) of Regulation AB under
the Act. Notwithstanding the foregoing, the Transferor agrees that the Underwriters may
disseminate information on Bloomberg to prospective investors relating solely to (i)
information of the type identified in Rule 134 of the Act, (ii) information included in the
Preliminary Prospectus, (iii) the status of allocations and subscriptions of the Notes,
expected pricing parameters of the Notes and the yields and weighted average lives of the
Notes, and (iv) information constituting final terms of the Notes within the meaning of Rule
433(d)(5)(ii) under the Act (each such communication, an “Underwriter Free Writing
Prospectus”); provided that in the case of the foregoing clauses (i) through (iv), other
than the final pricing terms, such Underwriter Free Writing Prospectus would not be required
to be filed with the Commission.
(d) Each Underwriter severally represents, warrants and agrees with the Transferor, the
Issuer and the Bank that:
(i) each Underwriter Free Writing Prospectus prepared by it will not, as of the
date such Underwriter Free Writing Prospectus was conveyed or delivered to any
prospective purchaser of the Notes, include any untrue statement of a material fact
or 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 no Underwriter makes such representation, warranty or agreement to the
extent such misstatements or omissions were the result of any inaccurate information
which was included in the Preliminary Prospectus, the Prospectus or any written
information furnished to the related Underwriter by the Transferor, the Issuer or
the Bank expressly for use therein, which information was not corrected by
information subsequently provided by the Transferor, the Issuer or the Bank to the
related Underwriter within a reasonable period of time prior to the time of use of
such Underwriter Free Writing Prospectus;
(ii) if required by Rule 433(c)(2)(i) of the Act, each Underwriter Free Writing
Prospectus prepared by it shall contain a legend substantially in the form of and in
compliance with Rule 433(c)(2)(i) of the Act, and shall otherwise conform to any
requirements for “free writing prospectuses” under the Act; and
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(iii) each Underwriter Free Writing Prospectus prepared by it shall be
delivered to the Transferor no later than the date of first use and, unless
otherwise agreed to by the Transferor and the related Underwriter, such delivery shall
occur no later than the close of business for the Bank (Central Time) on the date of
first use; provided, however, if the date of first use is not a Business Day, such
delivery shall occur no later than the close of business for the Bank (Central Time)
on the first Business Day after such date of first use.
(e) Each Underwriter represents and agrees (i) that it did not enter into any Contract
of Sale for any Notes prior to the Time of Sale and (ii) that it will, at any time that such
Underwriter is acting as an “underwriter” (as defined in Section 2(a)(11) of the Act) with
respect to the Notes, deliver the Preliminary Prospectus to each investor to whom Notes are
sold by it during the period prior to the filing of the final Prospectus (as notified to
such Underwriter by the Transferor or by the Bank), which delivery shall be prior to the
applicable time of any such Contract of Sale with respect to such investor.
(f) In the event the Bank, the Transferor or any Underwriter becomes aware that, as of
the Time of Sale, any Time of Sale Information contains or contained any untrue statement of
material fact or omits or omitted to state any material fact necessary in order to make the
statements contained therein in light of the circumstances under which they were made, not
misleading (“Defective Information”), such Underwriter, the Bank or the Transferor,
as applicable, shall promptly notify the Representatives and, in the case of any Underwriter
giving such notice, the Transferor, of such untrue statement or omission no later than one
Business Day after discovery and the Transferor shall prepare and deliver to the
Underwriters a Corrected Prospectus. Each Underwriter shall deliver such Corrected
Prospectus to any person with whom a Contract of Sale was entered into based on such
Defective Information, and such Underwriter shall provide any such person with adequate
disclosure of the person’s rights under the existing Contract of Sale and 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 based on the information set forth in
the Corrected Prospectus.
(g) [Each Underwriter represents and agrees that it has not delivered and will not
deliver any “data” (as described under TALF) (the “Data”) or “additional data” (as described
under TALF (the “Additional Data”) (such Data, together with the Additional Data, the “TALF
Data”) to any nationally recognized statistical rating organization (each such entity a
“NRSRO”) without (x) providing such TALF Data to the Bank or the Issuer prior to or, with
the consent of the Bank or the Issuer, promptly after delivery to such NRSRO and (y)
informing the Bank or the Issuer that it has delivered or will deliver such TALF Data to a
NRSRO.]
5. Certain Agreements of the Transferor. The Transferor agrees with the Underwriters
that:
(a) Immediately following the execution of this Agreement, the Transferor will transmit
the Prospectus to the Commission pursuant to Rule 424(b) by a means reasonably calculated to
result in filing with the Commission pursuant to Rule 424(b).
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The Transferor will not file any amendment of the Registration Statement with respect to the Notes or supplement to the
Prospectus unless a copy has been furnished to the Representatives for their review a reasonable time prior to the proposed filing thereof
or to which the Representatives shall reasonably object in writing. The Transferor will
advise the Representatives promptly of (i) the effectiveness of any amendment or
supplementation of the Registration Statement or Prospectus, (ii) any request by the
Commission for any amendment or supplementation of the Registration Statement or the
Prospectus or for any additional information, (iii) the receipt by the Transferor of any
notification with respect to the suspension of qualification of the Notes for sale in any
jurisdiction or the initiation or threatening of any proceeding for such purposes and (iv)
the institution by the Commission of any stop order proceeding in respect of the
Registration Statement, and will use its best efforts to prevent the issuance of any such
stop order and to obtain as soon as possible its lifting, if issued.
(b) If at any time when a prospectus relating to the Notes is required to be delivered
under the Act, any event occurs as a result of which the Preliminary Prospectus or the
Prospectus, as then amended or supplemented, would include an untrue statement of a material
fact or omit to state any material fact 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 the Preliminary Prospectus or the Prospectus to comply with the Act,
the Transferor promptly will notify the Representatives of such event and prepare and file
with the Commission an amendment or supplement which will correct such statement or omission
or an amendment which will effect such compliance. Neither the Underwriters’ consent to,
nor the Underwriters’ delivery of, any such amendment or supplement shall constitute a
waiver of any of the conditions set forth in Section 7.
(c) As soon as practicable, the Transferor will cause the Issuer to make generally
available to the Noteholders an earnings statement or statements of the Issuer covering a
period of at least 12 months beginning after the Effective Date which will satisfy the
provisions of Section 11(a) of the Act and Rule 158 of the Commission promulgated
thereunder; provided, that this covenant may be satisfied by posting the
monthly investor reports for the Trust for each month in such 12-month period on a publicly
available website.
(d) The Transferor will furnish to the Representatives and their counsel, without
charge, copies of the Registration Statement (one of which will be signed and will include
all exhibits), the Preliminary Prospectus and the Prospectus and all amendments and
supplements to such documents, in each case as soon as available and in such quantities as
the Representatives reasonably request. The Transferor will pay the expenses of printing or
other production of all documents relating to the offering of the Notes.
(e) The Transferor will endeavor to qualify the Notes for sale under the securities or
Blue Sky laws of such jurisdictions as the Representatives shall reasonably request and the
determination of the eligibility for investment of the Notes under the laws of such
jurisdictions as the Representatives may designate and will continue such
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qualifications in effect so long as required for the distribution of the Notes;
provided, however, that the Transferor shall not be obligated to qualify to
do business in any jurisdiction where such qualification would subject the Transferor
to general or unlimited service of process in any jurisdiction where it is not
now so subject. The Transferor will promptly advise the Underwriters of the receipt
by the Transferor of any notification with respect to the suspension of the
qualification of the Notes for sale in any jurisdiction or the initiation or
threat of any proceeding for such purpose.
(f) The Transferor will, and will cause the Issuer to, assist the Representatives in
making arrangements with DTC, Euroclear and Clearstream, concerning the issue of the Notes,
arranging with such clearing agency to permit the Notes to be eligible for clearance and
settlement through such clearing agency and related matters.
(g) So long as any Note is outstanding, the Transferor will furnish, or cause the
Servicer to furnish, to the Representatives copies of each certificate and the annual
statements of compliance delivered to (a) the Owner Trustee, the Indenture Trustee and each
Rating Agency pursuant to Section 3.05 of the Transfer and Servicing Agreement and
independent certified public accountant’s servicing reports furnished to the Indenture
Trustee and the Rating Agencies pursuant to Sections 3.06(a) and (b) of the Transfer and
Servicing Agreement, and (b) the Series [20 ]-[•] Noteholders pursuant to Sections 5.03(a)
and (d) of the Indenture Supplement, by first class mail promptly after such certificates,
statements and reports are furnished to the Owner Trustee, the Indenture Trustee, the Series
[20 ]-[•] Noteholders or the Rating Agencies, as the case may be.
(h) So long as any Note is outstanding, the Transferor will furnish, or cause the
Servicer to furnish, to the Representatives, by first-class mail as soon as practicable
(i) all documents concerning the Receivables or the Notes distributed by the Transferor or
the Servicer (under the Transfer and Servicing Agreement) to the Owner Trustee,
the Indenture Trustee or the Noteholders, or filed with the Commission pursuant to the
Securities Exchange Act of 1934, as amended (the “Exchange Act”), (ii) any order of
the Commission under the Act or the Exchange Act applicable to the Issuer or to the
Transferor, or pursuant to a “no-action” letter obtained from the staff of the Commission by
the Transferor and affecting the Issuer or the Transferor and (iii) from time to time, such
other information concerning the Issuer as the Representatives may reasonably request.
(i) To the extent, if any, that any of the ratings provided with respect to the Notes
by any Rating Agency are conditional upon the furnishing of documents or the taking of any
other actions by the Transferor, the Transferor shall furnish such documents and take any
such other actions as are necessary to satisfy such condition.
(j) In connection with any disposition of the Definitive Notes pursuant to a
transaction made in compliance with all applicable transfer restrictions contemplated herein
and in the Indenture, the Transferor will cause the Issuer to reissue notes evidencing such
Definitive Notes as required pursuant to the Indenture.
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(k) Until 30 days following the Closing Date, none of the Transferor or any trust or
other entity originated, directly or indirectly, by the Transferor (including, without
limitation, the Issuer) will, without the prior written consent of the Representatives,
which shall not be unreasonably withheld, offer, sell or contract to sell, or otherwise
dispose of, directly or indirectly, or announce the offering of, any asset-backed securities
(other than the [Class A] Notes, [the Class B Notes, the Class C Notes], any other publicly
offered asset-backed securities and any variable funding notes issued pursuant to the
renewal a variable funding note facility that has been privately placed with one or more
commercial paper conduits).
(l) The Transferor shall cause its computer records relating to the Receivables to be
marked in accordance with Section 2.01(c) of the Transfer and Servicing Agreement to show
the Issuer’s absolute ownership of the Receivables, and shall not take any action
inconsistent with the Issuer’s ownership of the Receivables, other than as permitted by the
Transfer and Servicing Agreement.
(m) The Transferor will enter into or has entered into the Transfer and Servicing
Agreement and other instruments to which this Agreement and the Transfer and Servicing
Agreement contemplate it will be a party on or prior to the Closing Date. The Transferor
will cause the Issuer to enter into any instruments to which this Agreement or any
Transaction Document contemplates that either will be a party on or prior to the Closing
Date.
(a) Until 30 days following the Closing Date, none of the Bank or any trust or other
entity originated, directly or indirectly, by the Bank (including, without limitation, the
Transferor) will, without the prior written consent of the Representatives, which shall not
be unreasonably withheld, offer, sell or contract to sell, or otherwise dispose of, directly
or indirectly, or announce the offering of, any asset-backed securities (other than the
[Class A] Notes, [the Class B Notes, the Class C Notes], any other publicly offered
asset-backed securities and any variable funding notes issued pursuant to the renewal of a
variable funding note facility that has been privately placed with one or more commercial
paper conduits).
(b) The Bank has entered into the Receivables Purchase Agreement, the Transfer and
Servicing Agreement and will have entered into other instruments to which this Agreement and
the Receivables Purchase Agreement and the Transfer and Servicing Agreement contemplate it
will be a party on or prior to the Closing Date.
7. Conditions of the Obligations of the Underwriters. The obligation of the
Underwriters to purchase and pay for the Notes will be subject to the accuracy of the
representations and warranties by the Transferor and the Bank herein, to the accuracy of the
statements of officers of the Transferor and the Bank made pursuant to the provisions hereof,
to the performance by the Transferor and the Bank of their respective obligations hereunder and to
the following additional conditions precedent:
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(a) On or prior to each of the date of this Agreement and the Closing Date,
the Representatives shall have received an agreed upon procedures letter or letters of
Deloitte & Touche LLP, dated on or prior to the date of the Preliminary Prospectus
Supplement and the Prospectus Supplement, as applicable, confirming that they are
independent public accountants within the meaning of the Act and the applicable published
Rules and Regulations thereunder, which letter shall be substantially in the form heretofore
agreed to and otherwise in form and in substance satisfactory to the Representatives and
their counsel.
(b) Each of the Preliminary Prospectus and the Prospectus shall have been filed with
the Commission in accordance with the Rules and Regulations and Section 5(a) of this
Agreement; 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 the Transferor or the Representatives, shall be
contemplated by the Commission.
(c) Since the respective dates as of which information is given in the Registration
Statement, the Preliminary Prospectus and the Prospectus, except as otherwise set forth
therein, there has not been a material adverse change in the condition, financial or
otherwise, or in the earnings, business or operations, of the Bank or the Transferor, which
in any case makes it impracticable or inadvisable in the Representatives’ reasonable
judgment to proceed with the public offering or the delivery of the Notes on the terms and
in the manner contemplated in the Prospectus.
(d) Subsequent to the execution and delivery of this Agreement none of the following
shall have occurred: (i) trading in securities generally on the New York Stock Exchange, the
American Stock Exchange or the over-the-counter market shall have been suspended, limited or
minimum prices shall have been established on either of such exchanges or such market by the
Commission, by such exchange or by any other regulatory body or governmental authority
having jurisdiction or any suspension of trading of any securities of the Issuer, the Bank,
the Transferor or First National of Nebraska, Inc. or any of their Affiliates on any
exchange or in the over-the-counter market; (ii) a banking moratorium shall have been
declared by Federal or state authorities; (iii) any downgrading in the rating of any debt
securities of the Issuer, the Bank, the Transferor, First National of Nebraska, Inc. or any
of their Affiliates by any “nationally recognized statistical rating organization” (as
defined for purposes of Rule 436(g) under the Act), or any public announcement that any such
organization has under surveillance or review its rating of any such debt securities (other
than an announcement with positive implications of a possible upgrading, and no implication
of a possible downgrading, of such rating); (iv) the United States shall have become engaged
in hostilities, there shall have been an escalation of hostilities involving the United
States or there shall have been a declaration of a national emergency or war by the United
States or any other substantial national or international calamity or emergency which, in
the judgment of the Representatives, makes it impractical or inadvisable to proceed with the
completion and sale of and payment for the Notes; and (v) any material adverse change in the
financial markets for asset-backed securities in the United States which, in the
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Representatives’ judgment, makes it impractical to proceed with completion of the sale
of and payment for the Notes.
(e) The Representatives shall have received an opinion or opinions, dated the Closing
Date, of Xxxxx Xxxx LLP, special counsel to the Transferor and the Bank, satisfactory in
form and substance to the Representatives and their counsel to the effect that:
(i) The Transferor is a limited liability company in good standing, duly
organized and validly existing under the laws of the State of Nebraska; FNFC is a
special purpose business corporation in good standing, duly organized and validly
existing under the laws of the State of Nebraska; the Bank is a national banking
association in good standing, duly organized and validly existing under the laws of
the United States of America; and each of the Transferor and the Bank (each referred
to in this subsection (d) as an “FNBO Entity”) is duly qualified to do
business and is in good standing under the laws of each jurisdiction which requires
such qualification wherein it owns or leases material properties or conducts
material business, and has full power and authority to own its properties, to
conduct its business as described in the Registration Statement, the Preliminary
Prospectus and the Prospectus, to enter into and perform its obligations under this
Agreement and the Transaction Documents to which it is a party, and to consummate
the transactions contemplated thereby.
(ii) Each of the Transaction Documents, [and] this Agreement, [the Indemnity
Undertaking and the TALF Undertaking] has been duly authorized, executed and
delivered by each FNBO Entity that is a party thereto.
(iii) Neither the execution and delivery of the Transaction Documents, [and]
this Agreement, [the Indemnity Undertaking and the TALF Undertaking] by either FNBO
Entity that is party thereto nor the consummation of any of the transactions
contemplated therein nor the fulfillment of the terms thereof, conflicts with or
violates, results in a material breach of or constitutes a default under (A) any
Requirements of Law applicable to such FNBO Entity, (B) any term or provision of any
order known to such firm to be currently applicable to such FNBO Entity of any
court, regulatory body, administrative agency or governmental body having
jurisdiction over such FNBO Entity or (C) any term or provision of any indenture or
other agreement or instrument known to such firm to which such FNBO Entity is a
party or by which either of them or any of their properties are bound and, as to
FNBO, which has been identified to us as material to the business or operations of
FNBO.
(iv) Except as otherwise disclosed in the Prospectus (and any supplement
thereto) or the Registration Statement, there is no pending or, to the best of such
firm’s knowledge, threatened action, suit or proceeding before any court or
governmental agency, authority or body or any arbitrator with respect to the Issuer,
the Notes, this Agreement, [or] any of the Transaction Documents, [the Indemnity
Undertaking or the TALF Undertaking] or any of the transactions
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contemplated therein with respect to an FNBO Entity which, in the case of any
such action, suit or proceeding if adversely determined, would have a material
adverse effect on the Notes or the Issuer or upon the ability of either FNBO Entity
to perform its obligations under this Agreement, the Transaction Documents.
(v) Each of the Transaction Documents, [the Indemnity Undertaking and the TALF
Undertaking] to which an FNBO Entity is a party constitutes the legal, valid and
binding agreement of such Person under the laws of Nebraska, enforceable against
each FNBO Entity that is a party thereto in accordance with its terms, subject to
(A) the effect of bankruptcy, insolvency, moratorium, receivership, reorganization,
liquidation and other similar laws affecting creditors’ rights generally and the
rights of creditors of national banking associations (including, without limitation,
the determination pursuant to 12 U.S.C. §1821(e) of any liability for the
disaffirmance or repudiation of any contract), (B) the effect of general principles
of equity including (without limitation) concepts of materiality, reasonableness,
good faith, fair dealing (regardless of whether considered and applied in a
proceeding in equity or at law), and also to the possible unavailability of specific
performance or injunctive relief, (C) the unenforceability under certain
circumstances of provisions indemnifying a party against liability or requiring
contribution from a party for liability where such indemnification or contribution
is contrary to public policy and (D) the fact that certain remedial provisions of
the Indenture may be unenforceable in whole or in part under the UCC, but the
inclusion of such provisions does not render the other provisions of the Indenture
invalid and notwithstanding that such provisions may be unenforceable in whole or in
part, the Indenture Trustee, on behalf of the Noteholders, will be able to enforce
the remedies of a secured party under the UCC.
(vi) This Agreement constitutes the legal, valid and binding obligation of the
Transferor and the Bank under the laws of the State of New York, enforceable against
the Transferor and the Bank in accordance with its terms, subject to (A) the effect
of bankruptcy, insolvency, moratorium, receivership, reorganization, liquidation and
other similar laws affecting creditors’ rights generally and the rights of creditors
of national banking associations (including, without limitation, the determination
pursuant to 12 U.S.C. §1821(e) of any liability for the disaffirmance or repudiation
of any contract), (B) the effect of general principles of equity including (without
limitation) concepts of materiality, reasonableness, good faith, fair dealing
(regardless of whether considered and applied in a proceeding in equity or at law),
and also to the possible unavailability of specific performance or injunctive
relief, and (C) the unenforceability under certain circumstances of provisions
indemnifying a party against liability or requiring contribution from a party for
liability where such indemnification or contribution is contrary to public policy.
(vii) The Notes are in due and proper form and when executed, authenticated and
delivered as specified in the Indenture, and when delivered against payment of the
consideration specified in this Agreement, will be validly
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issued and outstanding, will constitute legal, valid and binding obligations of
the Issuer, enforceable against the Issuer in accordance with their terms and will
be entitled to the benefits of the Indenture, subject to (A) the effect of
bankruptcy, insolvency, moratorium, receivership, reorganization, liquidation and
other similar laws affecting creditors’ rights generally, (B) the effect of general
principles of equity including (without limitation) concepts of materiality,
reasonableness, good faith, fair dealing (regardless of whether considered and
applied in a proceeding in equity or at law), and also to the possible
unavailability of specific performance or injunctive relief, (C) the
unenforceability under certain circumstances of provisions indemnifying a party
against liability or requiring contribution from a party for liability where such
indemnification or contribution is contrary to public policy and (D) certain
remedial provisions of the Indenture may be unenforceable in whole or in part under
the UCC, but the inclusion of such provisions does not render the other provisions
of the Indenture invalid and notwithstanding that such provisions may be
unenforceable in whole or in part, the Indenture Trustee, on behalf of the
Noteholders, will be able to enforce the remedies of a secured party under the UCC.
(viii) [Reserved].
(ix) The Registration Statement has become effective under the Act, and each of
the Preliminary Prospectus and the Prospectus have been filed with the Commission
pursuant to Rule 424(b) thereunder in the manner and within the time period required
by Rule 424(b). To the best of such firm’s knowledge, no stop order suspending the
effectiveness of the Registration Statement has been issued and no proceedings for
that purpose have been instituted or are pending or threatened or contemplated by
the Commission.
(x) The statements in the Base Prospectus under the headings “Risk Factors—If a
conservator or receiver were appointed for First National Bank of Omaha, or if we
become a debtor in a bankruptcy case, delays or reductions in payment of your notes
could occur,” “Material Legal Aspects of the Receivables,” “ERISA Considerations”
and “Federal Income Tax Consequences” and the statements in the Preliminary
Prospectus Supplement and the Prospectus Supplement under the headings “Structural
Summary—Tax Status” and “—ERISA Considerations” to the extent that they constitute
matters of law or legal conclusions with respect thereto, have been reviewed by us
and are correct in all material respects.
(xi) The Transaction Documents and the Notes conform in all material respects
to the descriptions thereof contained in the Preliminary Prospectus and the
Prospectus.
(xii) The Master Indenture has been duly qualified under the TIA and complies
as to form with the TIA and the rules and regulations of the Commission thereunder.
The Indenture Supplement is not required to be qualified under the TIA in connection
with the Notes. The Issuer is not now, and immediately
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following the issuance of the Notes pursuant to the Indenture will not be,
required to be registered under the Investment Company Act of 1940, as amended.
(xiii) No approval, authorization, consent, order, registration, filing,
qualification, license or permit of or with any court or governmental agency or body
is required for the consummation by the Bank, FNFC, the Transferor or the Issuer of
the transactions contemplated by the Transaction Documents and this Agreement, and
the issuance of the Notes, except such as have been obtained under the Act and such
as may be required under the Federal Securities laws and the blue sky laws of any
jurisdiction inside the United States in connection with the purchase and
distribution of the Notes by the Underwriters.
(xiv) For federal income tax purposes: (i) the [Class A Notes] [Notes] will be
characterized as debt; (ii) the Note Trust will not be classified as an association
or publicly traded partnership taxable as a corporation for federal income tax
purposes; (iii) the issuance of the Notes will not adversely affect the tax
characterization as debt of any outstanding series of notes issued by the Note Trust
with respect to which an opinion of counsel was delivered at their time of issuance
that such notes would be characterized as debt; and (iv) the issuance of the Notes
will not otherwise constitute an event in which a gain or loss would be recognized
by any holders of any outstanding series of notes issued by the Note Trust.
(xv) The Indenture, the Administration Agreement and the Notes constitute the
legal, valid and binding obligation of the Issuer under the laws of the State of
Nebraska, subject to (A) the effect of bankruptcy, insolvency, moratorium,
receivership, reorganization, liquidation and other similar laws affecting
creditors’ rights generally, (B) the effect of general principles of equity
including (without limitation) concepts of materiality, reasonableness, good faith,
fair dealing (regardless of whether considered and applied in a proceeding in equity
or at law), and also to the possible unavailability of specific performance or
injunctive relief, (C) the unenforceability under certain circumstances of
provisions indemnifying a party against liability or requiring contribution from a
party for liability where such indemnification or contribution is contrary to public
policy and (D) the fact that certain remedial provisions of the Indenture may be
unenforceable in whole or in part under the UCC, but the inclusion of such
provisions does not render the other provisions of the Indenture invalid and
notwithstanding that such provisions may be unenforceable in whole or in part, the
Indenture Trustee, on behalf of the Noteholders, will be able to enforce the
remedies of a secured party under the UCC.
(xvi) Each of the Registration Statement, as of its effective date, the
Preliminary Prospectus and the Prospectus, each as of its date, complied as to form
in all material respects with the requirements of the Act and the Rules and
Regulations under the Act, except that in each case such counsel need not express
any opinion as to the financial and statistical data included therein or excluded
therefrom or the exhibits to the Registration Statement and, except as and, to the
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extent set forth in paragraphs (x) and (xi), such counsel does not assume any
responsibility for the accuracy, completeness or fairness of the statements
contained in the Registration Statement, the Preliminary Prospectus or the
Prospectus.
(xvii) If the FDIC were appointed as conservator or receiver for the Bank (a)
the FDIC regulation entitled [“Treatment by the Federal Deposit Insurance
Corporation as Conservator or Receiver of Financial Assets Transferred by an Insured
Depository Institution in Connection with a Securitization or Participation,” 12 CFR
§360.6] (the “Rule”) would be applicable to the transfers of Receivables by
Bank to Transferor under the Receivables Purchase Agreement, (b) under the Rule, the
FDIC could not, by exercise of its authority to disaffirm or repudiate contracts
under 12 U.S.C. §1821(e), reclaim or recover the Receivables or the proceeds thereof
from Transferor or the Issuer or recharacterize the Receivables or the proceeds
thereof as property of Bank or the receivership for Bank, and (c) neither the FDIC
(acting for itself as a creditor or as a representative of the Bank or its
shareholders or creditors) nor any creditor of the Bank would have the right, under
any bankruptcy or insolvency law applicable in the conservatorship or receivership
of the Bank, other than Section 11(c) of the Federal Deposit Insurance Act, as
amended, 12 U.S.C. § 1811 et seq. (the “FDIA”), to avoid transfers of
Receivables by the Bank to the Transferor, to recover the Receivables, or to require
the Receivables to be turned over to the FDIC or such creditor and (d) there is no
power, other than powers referred to in the Rule, that is exercisable by the FDIC as
conservator or receiver for the Bank that would permit the FDIC as such conservator
or receiver to reclaim or recover the Receivables from the Transferor or to
recharacterize the Receivables transferred by the Bank to the Transferor as property
of the Bank or of the conservatorship or receivership for the Bank.
(xviii) Certain matters regarding and related to the limited liability company
agreement of the Transferor.
(xix) Certain matters relating to the characterization of the Receivables under
the UCC and to the transfer of the Receivables from the Transferor to the Issuer
under the Transfer and Servicing Agreement.
(xx) [Reserved].
(xxi) Certain matters with respect to the attachment and perfection of the
ownership interests and security interests granted under the Transaction Documents
in the Receivables and the proceeds thereof, including that such assets are not
subject to other Liens of record.
Such counsel also shall state that they have participated in conferences with
representatives of the Transferor and the Bank and their accountants, the Underwriters and
counsel to the Underwriters concerning the Registration Statement, the Preliminary
Prospectus and the Prospectus and have considered the matters to be stated therein and
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the matters stated therein, although they are not independently verifying the accuracy,
completeness or fairness of such statements (except as stated in paragraphs (x) and (xi)
above) and based upon and subject to the foregoing, nothing has come to such counsel’s
attention to cause such counsel to believe that the Registration Statement (excluding any
exhibits filed therewith), at the time it became effective, contained any untrue statement
of a material fact or omitted to state any material fact required to be stated therein or
necessary to make the statements therein not misleading, or that the Preliminary Prospectus,
as of its date, as of the Time of Sale and as of the Closing Date, or the Prospectus, as of
the date hereof and as of the Closing Date, contains any untrue statement of a material fact
or omits to state any material fact required to be stated therein or necessary in order to
make the statements therein, in light of the circumstances under which they were made, not
misleading (it being understood that such counsel has not been requested to, and does not,
make any comment in such opinion with respect to the financial statements, supporting
Schedules and other financial or statistical information contained in the Registration
Statement, the Preliminary Prospectus or the Prospectus).
In rendering such opinion, counsel may rely (A) as to matters involving the application
of laws of any jurisdiction other than the State of New York, State of Nebraska and the
United States, to the extent deemed proper and stated in such opinion, upon the opinion of
other counsel of good standing believed by such counsel to be reliable and acceptable to the
Representative and its counsel, and (B) as to matters of fact, on certificates of
responsible officers of the Issuer, the Bank, the Transferor and public officials.
(f) The Representatives shall have received from Xxxxx Xxxxx LLP, special counsel for
the Underwriters, a negative assurance letter, dated the Closing Date, with respect to such
matters relating to this transaction as the Representatives may require, and the Transferor
shall have furnished to such counsel such documents as they request for the purpose of
enabling them to pass upon such matters.
(g) The Representatives shall have received a certificate from each of the Transferor
and the Bank, dated the Closing Date, of a Treasurer, Vice President or more senior officer
of the Transferor or the Bank, as the case may be, in which such officer, to the best of
his/her knowledge after reasonable investigation, shall state that (u) the representations
and warranties of the Transferor and the Bank, as the case may be, in this Agreement are
true and correct on and as of the Closing Date, (v) the Transferor or the Bank, as the case
may be, has complied with all agreements and satisfied all conditions on its part to be
performed or satisfied hereunder at or prior to the Closing Date, (w) the representations
and warranties of the Transferor or the Bank, as the case may be, contained in this
Agreement and the Transaction Documents to which it is a party are true and correct as of
the dates specified herein and therein, (x) no stop order suspending the effectiveness of
the Registration Statement has been issued and no proceedings for that purpose have been
instituted or are threatened by the Commission, (y) nothing has come to such officers’
attention that would lead such officers to believe that the Registration Statement, the
Preliminary Prospectus or the Prospectus, and any amendment or supplement thereto, as of its
date and as of the Closing Date, contained an untrue statement of a material fact or omitted
to state any material fact necessary in order to
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make the statements therein, in the light of the circumstances under which they were
made, not misleading, and (z) subsequent to the date of the Preliminary Prospectus, there
has been no material adverse change in the financial position or results of operation of the
Bank’s credit card business except as set forth in or contemplated by the Preliminary
Prospectus and the Prospectus or as described in such certificate.
(h) The Representative shall have received an opinion of Xxxxxxxx, Xxxxxx & Finger,
P.A., counsel to the Owner Trustee, dated the Closing Date, satisfactory in form and
substance to the Representative and its counsel, to the effect that:
(i) The Owner Trustee is duly incorporated and validly existing as a banking
corporation in good standing under the laws of the State of Delaware.
(ii) The Owner Trustee has the power and authority to execute, deliver and
perform the Trust Agreement.
(iii) The Trust Agreement has been duly authorized, executed and delivered by
the Owner Trustee and constitutes a legal, valid and binding obligation of the Owner
Trustee, enforceable against the Owner Trustee in accordance with its terms.
(iv) Neither the execution, delivery or performance by the Owner Trustee of
the Trust Agreement, nor the consummation of the transactions by the Owner Trustee
contemplated thereby, requires the consent or approval of, the withholding of
objection on the part of, the giving of notice to, the filing, registration or
qualification with, or the taking of any other action in respect of, any
governmental authority or agency of the State of Delaware or the United States of
America governing the trust powers of the Owner Trustee (other than the filing of
the certificate of trust with the Delaware Secretary of State).
(v) Neither the execution, delivery and performance, by the Owner Trustee, of
the Trust Agreement, nor the consummation of the transactions by the Owner Trustee
contemplated thereby, is in violation of the charter or bylaws of the Owner Trustee
or of any law, governmental rule or regulation of the State of Delaware or of the
United States of America governing trust powers of the Owner Trustee or, to such
counsel’s knowledge, without independent investigation, any indenture, mortgage,
bank credit agreement, note or bond purchase agreement, long-term lease, license or
other agreement or instrument to which it is a party or by which it is bound or, to
such counsel’s knowledge, without independent investigation, of any judgment or
order applicable to the Owner Trustee.
(vi) To such counsel’s knowledge, without independent investigation, there are
no pending or threatened actions, suits or proceedings affecting the Owner Trustee
before any court or other governmental authority which, if adversely determined,
would materially and adversely affect the ability of the Owner Trustee to carry out
the transactions contemplated by the Trust Agreement.
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(i) The Representative shall have received an opinion of Xxxxxxxx, Xxxxxx & Finger,
P.A., special Delaware counsel to the Issuer, dated the Closing Date, satisfactory in form
and substance to the Representative and its counsel, to the effect that:
(i) The Issuer has been duly formed and is validly existing in good standing as
a statutory trust under the Delaware Statutory Trust Act, 12 Del. C. 3801 et seq.
(referred to in this subsection (h) as the “Trust Act”).
(ii) The Trust Agreement is a legal, valid and binding obligation of the
Transferor and the Owner Trustee, enforceable against the Transferor and the Owner
Trustee, in accordance with its terms.
(iii) Under the Trust Act and the Trust Agreement, the execution and delivery
of the Transfer and Servicing Agreement, [and] the Indenture [and the TALF
Certification,] the issuance of the Notes, and the granting of the Collateral to the
Indenture Trustee as security for the Notes has been duly authorized by all
necessary trust action on the part of the Issuer.
(iv) Under the Trust Act and the Trust Agreement, the Issuer has (i) the power
and authority to execute, deliver and perform its obligations under the
Administration Agreement, the Indenture and the Transfer and Servicing Agreement
(collectively [with the TALF Certification] referred to in this subsection (h) as
the “Trust Documents”) and the Notes, [and] (ii) duly authorized, executed
and delivered the Administration Agreement, the Indenture, the Transfer and
Servicing Agreement and the Notes [and (iii) authorized the TALF Certification].
(v) Neither the execution, delivery and performance by the Issuer of the Trust
Documents or the Notes, nor the consummation by the Issuer of any of the
transactions by the Issuer contemplated thereby, requires the consent or approval
of, the withholding of objection on the part of, the giving of notice to, the
filing, registration or qualification with, or the taking of any other action in
respect of, any governmental authority or agency of the State of Delaware, other
than the filing of the certificate of trust with the Delaware Secretary of State
which certificate of trust has been duly filed and the filing of any financing
statements with the Delaware Secretary of State in connection with the Indenture.
(vi) Neither the execution, delivery and performance by the Issuer of the Trust
Documents, nor the consummation by the Issuer of the transactions contemplated
thereby, is in violation of the Trust Agreement or of any law, rule, or regulation
of the State of Delaware applicable to the Issuer.
(vii) Under Section 3805(b) of the Act, no creditor of the holder of the
beneficial interest in the Trust shall have any right to obtain possession of, or
otherwise exercise legal or equitable remedies with respect to, the property of the
Issuer except in accordance with the terms of the Trust Agreement.
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(viii) Under Section 3808(a) and (b) of the Act, the Issuer may not be
terminated or revoked by the holder of the beneficial interest in the Issuer, and
the dissolution, termination or bankruptcy of the holder of the beneficial interest
in the Issuer shall not result in the termination or dissolution of the Issuer,
except to the extent otherwise provided in the Trust Agreement.
(ix) The Owner Trustee is not required to hold legal title to the Trust Estate
in order for the Issuer to qualify as a statutory trust under the Act.
(j) The Representative shall have received an opinion of Xxxxxxx and Xxxxxx LLP,
counsel to the Indenture Trustee dated the Closing Date, satisfactory in form and substance
to the Representatives and their counsel, to the effect that:
(i) The Indenture Trustee is organized and validly existing as a national
banking association in good standing under the laws of the United States of America
and is authorized and qualified to accept the trusts imposed by the Indenture and to
act as Indenture Trustee under the Indenture.
(ii) The acknowledgment by the Indenture Trustee of the Transfer and Servicing
Agreement has been duly authorized, executed and delivered by the Indenture Trustee.
The Indenture Trustee has duly authorized, executed and delivered the Indenture.
Assuming the due authorization, execution and delivery thereof by the other parties
thereto, the Indenture is the legal, valid and binding obligation of the Indenture
Trustee, enforceable against the Indenture Trustee in accordance with its terms,
subject to bankruptcy and insolvency laws and general principles of equity.
(iii) The Indenture Trustee has duly executed and authenticated the Notes.
(iv) The Indenture Trustee is duly authorized and empowered to exercise trust
powers under applicable law and to perform under the Transaction Documents to which
it is a party, or which it has acknowledged.
(v) None of (x) the execution and authentication of the Notes, (y) the
acknowledgement of the Transfer and Servicing Agreement or (z) the execution,
delivery and performance of the Indenture by the Indenture Trustee conflicts with or
will result in a violation of (A) any law or regulation of the United States of
America governing the banking or trust powers of the Indenture Trustee or (B) the
organizational documents of the Indenture Trustee.
(vi) No approval, authorization or other action by, or filing with, any
governmental authority of the United States of America having jurisdiction over the
banking or trust powers of the Indenture Trustee is required in connection with the
execution and delivery by the Indenture Trustee of the Indenture or the performance
by the Indenture Trustee of the terms of the Indenture or the acknowledgement of the
Transfer and Servicing Agreement.
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(k) [Reserved].
(l) The Representatives shall have received reliance letters addressed to the
Representatives, dated as of the Closing Date, allowing the Representatives to rely on each
opinion of counsel delivered to a Rating Agency, the Indenture Trustee, the Transferor or
the Bank in connection with the issuance of the Notes and not addressed to the
Representatives.
(m) The Representatives shall have received evidence satisfactory to the
Representatives that the [Class A] Notes shall have obtained the following ratings, [Aaa] by
[Xxxxx’x Investors Service, Inc.], [AAA] by [Fitch, Inc.], [AAA] by [Standard & Poor’s
Ratings Services] and [AAA] by [DBRS, Inc.] [, that the Class B Notes shall have obtained
the following ratings: [A2] or higher by [Xxxxx’x Investors Service, Inc.,] [A] or higher by
[Standard & Poor’s Rating Services] and [A] or higher by [DBRS, Inc.] [; and that the Class
C Notes shall have obtained the following ratings: [BBB] or higher by [Standard & Poor’s
Rating Services,] [BBB] or higher by [Fitch, Inc.] and [BBB] or higher by [DBRS, Inc.]].
(n) [Reserved].
(o) The Representatives shall have received opinions, dated as of the Closing Date, of
Xxxxx Xxxx LLP, special counsel to the Transferor and the Bank in Nebraska, Illinois and New
York, and Davenport, Evans, Xxxxxxx & Xxxxx, L.L.P., special counsel to the Transferor and
the Bank in South Dakota, with respect to such state tax matters as the Representatives
shall reasonably request in a manner consistent with prior public note issuances by the
Issuer.
(p) The Transferor will furnish the Representatives with such conformed copies of the
above and such other opinions, certificates, information, letters and documents as the
Representatives or their counsel reasonably request.
(q) [On or prior to the date that the Prospectus is filed with the Commission, the
Representatives shall have received evidence that the Bank and the Issuer have (i) executed
a Certification as to TALF Eligibility, in the form most recently prescribed by the FRBNY
under the TALF prior to such date (the “TALF Certification”) and (ii) included such
executed TALF Certification in the final Prospectus to be filed with the Commission.]
(r) [No later than four business days before the Closing Date the Representatives shall
have received evidence that the Bank and any other applicable entity have executed an
Indemnity Undertaking, in the form most recently prescribed by the FRBNY under the TALF
prior to such date (the “Indemnity Undertaking”), and have delivered such Indemnity
Undertaking, together with the TALF Certification, to the FRBNY in the manner prescribed by
the FRBNY, with a copy to the Representatives.]
(s) [No later than four business days before the Closing Date each TALF Agent that has
entered into an MLSA in connection with the TALF and is acting as agent, on or prior to the
Closing Date, for purchasers of the Notes, shall have received a Term
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Asset-Backed Securities Loan Facility Undertaking dated no later than four business
days before the Closing Date, in the form attached as Exhibit A hereto (the “TALF
Undertaking”), with such changes as may be agreed to by the Bank and the Transferor
(solely for purposes of this subsection 7(s) the “Issuer Parties”) and such TALF
Agent and executed by the Issuer Parties, under which the Issuer Parties will agree to
indemnify such TALF Agent for certain losses as set forth therein.]
(t) [No later than four business days before the Closing Date, the Representatives
shall have received (i) an executed copy of an Auditor Attestation prepared by Deloitte &
Touche LLP, in the form most recently prescribed by the FRBNY under the TALF prior to such
date (the “Auditor Attestation”), (ii) a copy of the Report of Management on
Compliance, in the form most recently prescribed by the FRBNY under the TALF prior to such
date, executed by the Bank and the Issuer (the “Report of Management”) and attached
to such Auditor Attestation, and (ii) evidence that such Auditor Attestation and Report of
Management have been delivered to the FRBNY in the manner prescribed by the FRBNY.]
(u) [The Representatives shall have received a reliance letter, dated as of the Closing
Date and addressed to the Underwriters, of Xxxxx Xxxx LLP, special counsel to the Transferor
and the Bank, satisfactory in form and substance to the Representatives and their counsel,
to the effect that each TALF Agent who is also an Underwriter, in its capacity as a TALF
Agent, and subject to the limitations in Section 10, will be entitled to rely on the
negative assurances letter described in the penultimate paragraph of Section 7(d), or such
negative assurances letter will provide for such reliance.]
(v) [On the Closing Date, (i) the Transferor and the Bank shall have taken all actions
(and caused the Issuer to take all action) required to be taken by such entities by the
FRBNY for the [Class A] Notes to be eligible collateral under the TALF and (ii) the [Class
A] Notes shall be eligible collateral under the TALF; provided, however, that neither the
Transferor nor the Bank makes any representation or warranty with respect to the eligibility
of a borrower for a loan under the TALF or whether any borrower has taken or its agents have
taken the steps necessary to qualify for such loan.]
(w) [On or prior to the date that is required by the FRBNY under TALF, the Bank and the
Issuer shall have delivered to the FRBNY all Data that they reasonably believe, based on the
guidance provided by the FRBNY, is required to be provided to the FRBNY, and, on or prior to
the Closing Date, the Bank and the Issuer shall have delivered to the FRBNY all Additional
Data, that they reasonably believe, based on the guidance provided by the FRBNY, is required
to be provided to the FRBNY.]
(x) [On or prior to the Closing Date, the Bank or the Issuer shall have delivered a
written waiver or consent, in a form acceptable to the FRBNY, (i) to every NRSRO to which
the Bank and the Issuer provided data on the [Class A] Notes or the underlying exposures
permitting such NRSRO to share its view of the credit quality of the [Class A] Notes and the
underlying collateral with the FRBNY and (ii) has delivered a copy of such waiver or consent
to the FRBNY on or prior to the TALF Delivery Date.]
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(y) [On or prior to the Closing Date, the Bank or the Issuer shall have received an
indication from the FRBNY that the [Class A] Notes satisfy the FRBNY’s risk assessment
requirements under TALF, which indication has not been revised or revoked as of the Closing
Date.]
If any of the conditions specified in this Section 7 shall not have been fulfilled in all
material respects when and as provided in this Agreement, or if any of the opinions and
certificates mentioned above or elsewhere in this Agreement shall not be in all material respects
reasonably satisfactory in form and substance to the Representatives and counsel for the
Representatives, this Agreement and all obligations of the Representatives hereunder may be
canceled at, or at any time prior to, the Closing Date by the Representatives.
8. Reimbursement of Expenses. The Transferor agrees to pay all costs and expenses in
connection with the transaction herein contemplated (whether or not consummated), including,
without limiting the generality of the foregoing: all costs and expenses (i) incident to the
preparation, issuance, execution, authentication and delivery of the Notes, (ii) incident to the
qualification of the Notes for investment under the laws of such jurisdictions as either
Representative designates, (iii) for any filing fee of the National Association of Securities
Dealers, Inc. relating to the Notes, (iv) incident to the preparation, printing (including word
processing and duplication costs) and delivery of the Preliminary Prospectus and the Prospectus,
including any Corrected Prospectus, and, including in each case all exhibits, amendments,
attachments and supplements thereto, (v) in connection with the printing (including word processing
and duplication costs) and delivery of this Agreement, the Preliminary Prospectus, the Prospectus
(including any Corrected Prospectus), the Transaction Documents and the furnishing to the
Representatives of copies of the Preliminary Prospectus and the Prospectus (including any Corrected
Prospectus) as herein provided, (vi) constituting the fees and disbursements of the
Representatives’ counsel and the Bank’s and the Transferor’s counsel and accountants, (vii) payable
to each Rating Agency in connection with the ratings of the Notes and (viii) in connection with the
structuring and marketing of the Notes (and any other miscellaneous expenses in connection
therewith); provided that the Representatives shall not be obligated to pay any expenses of a
defaulting Representative.
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(a) The Transferor and the Bank, jointly and severally, will indemnify and hold
harmless each Underwriter [(including in its capacity as a TALF Agent)], the respective
directors, officers, employees and agents of each Underwriter and each Person who controls
any Underwriter [(including in its capacity as a TALF Agent)] within the meaning of Section
15 of the Act or Section 20 of the 1934 Act (the “Indemnified Parties”) from and
against any losses, claims, damages or liabilities, joint or several, to which the
Underwriters [(including in their capacity as a TALF Agent)] or any of them may become
subject, under the Act, the 1934 Act, or other federal or state statutory law or regulation,
at common law or otherwise, insofar as such losses, claims, damages or liabilities (or
actions in respect thereof) arise out of or are based upon any untrue statement or alleged
untrue statement of any material fact contained in (i) the Registration Statement, (ii) the
Preliminary Prospectus, (iii) the Prospectus, (iv) any Additional Information [or (v) any
information provided by or on behalf of the Issuer or the Bank to the FRBNY in connection
with the [Class A Notes] [Notes] (provided that the Underwriters have complied with their
covenant set forth in Section 4(g))], or other information provided by the Transferor or the
Bank to any holder or prospective purchaser of the Notes, or arise out of or are based upon
the omission or alleged omission to state therein a material fact required to be stated
therein or necessary to make the statements therein, in light of the circumstances under
which they were made, not misleading, and will reimburse each such Indemnified Party
[(including in its capacity as a TALF Agent)] for any legal or other expenses reasonably
incurred by them in connection with investigating or defending any such loss, claim, damage,
liability or action as such expenses are incurred; provided, however, that
Transferor and the Bank will not be liable in any such case to the extent that any such
loss, claim, damage or liability arises out of or is based upon an untrue statement or
alleged untrue statement in or omission or alleged omission from any of such documents in
reliance upon and in conformity with the Underwriters’ Information; provided
further, that such indemnity with respect to any Corrected Statement (as defined
below) in such Prospectus shall not inure to the benefit of any Underwriter (or related
Indemnified Party) [(including in its capacity as a TALF Agent)] from whom the person
asserting any loss, claim, damage or liability purchased the Notes that are the subject
thereof if (i) the untrue statement or omission of a material fact contained in a Prospectus
was corrected (a “Corrected Statement”) in a Corrected Prospectus, (ii) the
Transferor gave such Underwriter prompt written notice of the need for a Corrected
Prospectus, and (iii) the Transferor furnished sufficient copies of such Corrected
Prospectus to such Underwriter sufficiently prior to the delivery of the confirmation of the
sale of such Notes so as to allow a reasonable time for such Underwriter to deliver such
Corrected Prospectus to such investor, but such Underwriter did not furnish such Corrected
Prospectus to such investor prior to the delivery of such confirmation. This indemnity
agreement will be in addition to any liability which the Transferor or the Bank may
otherwise have.
(b) Each Underwriter, severally and not jointly, agrees to indemnify and hold harmless
the Transferor, its directors and officers and each Person who controls the Transferor
within the meaning of Section 15 of the Act or Section 20 of the 1934 Act, against any
losses, claims, damages or liabilities to which the Transferor may become
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subject, under the Act, the 1934 Act, or other federal or state statutory law or
regulation, at common law or otherwise, insofar as such losses, claims, damages or
liabilities (or actions in respect thereof) arise out of or are based upon any untrue
statement or alleged untrue statement of any material fact contained in the Registration
Statement, the Prospectus or the Preliminary Prospectus, or arise out of or are based upon
the omission or the alleged omission to state therein a material fact required to be stated
therein or necessary to make the statements therein not misleading, in each case to the
extent, but only to the extent, that such untrue statement or alleged untrue statement or
omission or alleged omission was made in reliance upon and in conformity with the
Underwriters’ Information; and will reimburse any actual legal or other expenses reasonably
incurred by the Transferor and the Bank in connection with investigating or defending any
such loss, claim, damage, liability or action as such expenses are incurred; provided,
however, that in no case shall any Underwriter be responsible for any amount in excess of
the Underwriter’s discounts or commission applicable to the Notes to be sold by such
Underwriter hereunder.
(c) Promptly after receipt by an indemnified party under this Section of notice of the
commencement of any action or the assertion by a third party of a claim, such indemnified
party will, if a claim in respect thereof is to be made against the indemnifying party under
subsection (a) or (b) above, notify the indemnifying party in writing of the commencement
thereof; but the omission so to notify the indemnifying party will not (i) relieve it from
any liability which it may have to any indemnified party except and to the extent of any
material prejudice to such indemnifying party arising from such failure to provide such
notice and (ii) in any event, relieve the indemnifying party from any obligations to any
indemnified party other than the indemnification obligation provided in subsection (a) or
(b) above. 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
reasonably satisfactory to such indemnified party (who shall not, except with the consent of
the indemnified party, be counsel to the indemnifying party), provided, however, that if (x)
the use of counsel chosen by the indemnifying party to represent the indemnified party would
present such counsel with a conflict of interest which, if such counsel had been retained,
would have required such counsel to withdraw from such representation, (y) the indemnified
party shall have been advised by counsel that there may be one or more legal defenses
available to it that are different from or additional to those available to the indemnifying
party or to other indemnified parties, or (z) the indemnifying party shall not have employed
counsel satisfactory to the indemnified party to represent the indemnified party within a
reasonable time after receipt by the indemnifying party of notice of the institution of such
action or proceeding, then, in each such case, (1) the indemnifying party shall not have the
right to direct the defense of such action on behalf of such indemnified party or parties,
(2) such indemnified party or parties shall have the right to select separate counsel to
defend such action on behalf of such indemnified party or parties (provided that, if more
than one indemnified party is subject to the circumstances described in clause (y), then, to
the extent permitted by the rules of professional conduct applicable to attorneys, all such
indemnified parties shall be represented by one such separate counsel) and (3) all costs
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and expenses of each such indemnified party in connection with such action or
proceeding shall be paid by the indemnifying party pursuant to subsection (a) or (b) above,
and after notice from the indemnifying party to such indemnified party of its election so to
assume the defense thereof and approval by such indemnified party of counsel appointed to
defend such action, the indemnifying party will not be liable to such indemnified party
under this Section for any legal or other expenses subsequently incurred by such indemnified
party in connection with the defense thereof other than reasonable costs of investigation
unless, (i) the indemnified party shall have employed separate counsel in accordance with
this sentence or (ii) the indemnifying party has authorized in writing the employment of
counsel for the indemnified party at the expense of the indemnifying party. No indemnifying
party shall, without the prior written consent of the indemnified party, effect any
settlement of any pending or threatened action 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 any claims that are the subject matter of such
action and does not include a statement as to, or an admission of, fault, culpability or
failure to act by or on behalf of such indemnified party.
(d) If the indemnification provided for in this Section is unavailable or insufficient
to hold harmless an indemnified party under subsection (a) or (b) above, then each
indemnifying party shall contribute to the amount paid or payable by such indemnified party
as a result of the losses, claims, damages or liabilities referred to in subsection (a) or
(b) above (i) in such proportion as is appropriate to reflect the relative benefits received
by the Transferor and the Bank on the one hand and the Underwriters on the other from the
offering of the Notes, 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
Transferor and the Bank on the one hand and the Underwriters on the other in connection with
the statements or omissions which resulted in such losses, claims, damages or liabilities as
well as any other relevant equitable considerations; provided, however, that in no event
shall any Underwriter be responsible in the aggregate for any amount in excess of the
Underwriter’s discount or commission applicable to the Notes to be sold by such Underwriter
hereunder. The relative benefits received by the Transferor and the Bank on the one hand
and the Underwriters on the other shall be deemed to be in the same proportion as the total
net proceeds from the offering (before deducting expenses) of the Notes received by the
Transferor bear to the total underwriting discounts and commissions received by the
Underwriters with respect to the Notes. The relative fault 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 Transferor or the Bank or the Underwriters. The Transferor, the Bank and the
Representatives agree that it would not be just and equitable if contribution were
determined by pro rata allocation or any other method of allocation that does not take into
account the equitable considerations referred to above. The amount paid by an indemnified
party as a result of the losses, claims, damages or liabilities referred to in the first
sentence of this subsection (d) shall be deemed to include any legal or other expenses
reasonably incurred by such indemnified party in connection with investigating or defending
any action or claim which is the
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subject of this subsection (d). 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.
(e) The obligations of the Transferor and the Bank under this Section shall be in
addition to any liability which the Transferor or the Bank may otherwise have and shall
extend, upon the same terms and conditions, to each Person, if any, who controls any
Underwriter within the meaning of the Act or the 1934 Act and each director, officer,
employee, and agent of an Underwriter and each such Person shall have the same rights to
contribution as the Underwriter; and the obligations of any Underwriter under this Section
shall be in addition to any liability that such Underwriter may otherwise have and shall
extend, upon the same terms and conditions, to each director of the Transferor or the Bank,
to each officer of the Transferor or the Bank who has signed the Registration Statement and
to each Person, if any, who controls the Transferor or the Bank within the meaning of the
Act or the 1934 Act and each director, officer, employee, and agent of Transferor or Bank
and each such Person shall have the same rights to contribution as the Transferor or Bank,
as applicable.
10. [Limitation of Representations and Covenants of the Transferor and the Bank. The
representations, covenants and agreements made by the Transferor and the Bank to any TALF Agent,
including, without limitation, those made in this Agreement, shall extend to a TALF Agent only in
connection with the performance by such TALF Agent of its obligations under the TALF relating to
the Notes, and do not extend to and may not be relied upon by any direct or indirect purchaser or
owner of the Notes, or any other Person claiming by or through any such purchaser or owner of any
third party beneficiary, for any purposes or in any circumstances, whether on the theory that a
TALF Agent has acted or acts as their agent or otherwise.]
11. Survival of Certain Representations and Obligations. The respective indemnities,
agreements, representations, warranties and other statements of the Transferor and the Bank or
their officers and of the Underwriters set forth in or made pursuant to this Agreement will remain
in full force and effect, regardless of any investigation, or statement as to the results thereof,
made by or on behalf of the Underwriters, the Transferor, the Bank or any of their respective
representatives, officers or directors or any controlling person, and will survive delivery of and
payment for the Notes. If this Agreement is terminated or if for any reason other than default by
the Underwriters the purchase of the Notes by the Underwriters is not consummated, the Transferor
and the Bank shall remain responsible for the expenses to be paid by them pursuant to Section 8 and
the respective obligations of the Transferor, the Bank and the Underwriters pursuant to Section 9
shall remain in effect.
(a) Each Underwriter (severally and not jointly) represents and agrees that it has not
and will not, directly or indirectly, offer, sell or deliver any of the Notes or distribute
the Prospectus or any other offering materials relating to the Notes in or from any
jurisdiction except under circumstances that will, to the best of its knowledge and belief,
result in compliance with any applicable laws and regulations thereof.
-32-
(b) Each Underwriter further represents, warrants and agrees that (i) it has
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 and Markets Xxx 0000 (“FSMA”)) received by it in connection with
the issue or sale of any Notes in circumstances under which Section 21(1) of the FSMA does
not apply to the Issuer; and (ii) it has complied and will comply 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.
13. Default by an Underwriter. If any one or more Underwriters shall fail to purchase
and pay for any of the Notes agreed to be purchased by such Underwriter or Underwriters hereunder
and such failure to purchase shall constitute a default in the performance of its or their
obligations under this Agreement, the remaining Underwriters shall have the right to purchase all,
but shall not be under any obligation to purchase any, of the Notes, and if such nondefaulting
Underwriters do not purchase all the Notes, this Agreement will terminate without liability to any
nondefaulting Underwriter, the Transferor or the Bank. In the event of a default by any
Underwriter as set forth in this Section 13, the Closing Date shall be postponed for such period,
not exceeding seven days, as the Representatives shall determine in order that the required changes
in the Registration Statement and Prospectus or in any other documents or arrangements may be
effected. Nothing contained in this Agreement shall relieve any defaulting Underwriter for its
liability, if any, to the Transferor and the Bank and any nondefaulting Underwriter for damages
occasioned by its default hereunder.
14. Notices. All communications hereunder will be in writing and, if sent to the
Underwriters, will be mailed, delivered or telegraphed and confirmed to:
[ ]
[ ]
15. Counterparts. This Agreement may be executed in any number of counterparts, each
of which shall be deemed to be an original, but all such counterparts shall together constitute one
and the same Agreement.
16. APPLICABLE LAW. THIS AGREEMENT SHALL BE GOVERNED BY, AND CONSTRUED IN ACCORDANCE
WITH, THE LAWS OF THE STATE OF NEW YORK, WITHOUT REFERENCE TO ITS CONFLICT OF LAW PROVISIONS (OTHER
THAN SECTION 5-1401 OF THE NEW YORK GENERAL OBLIGATIONS LAW), AND OBLIGATIONS, RIGHTS AND REMEDIES
OF THE PARTIES HEREUNDER SHALL BE DETERMINED IN ACCORDANCE WITH SUCH LAWS.
TO THE EXTENT PERMITTED BY APPLICABLE LAW, EACH OF THE PARTIES HERETO IRREVOCABLY WAIVES ALL
RIGHT OF TRIAL BY JURY IN AN ACTION, PROCEEDING OR COUNTERCLAIM ARISING OUT OF OR IN CONNECTION
WITH THIS AGREEMENT AND THE TRANSACTION DOCUMENTS OR ANY MATTER ARISING HEREUNDER OR THEREUNDER.
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17. Representatives. The Representatives will act for the several Underwriters in
connection with this Agreement and the transactions contemplated hereby and any action undertaken
under this Agreement taken by the Representatives will be binding upon the Underwriters.
18. Absence of Fiduciary Relationship. The Transferor and the Bank acknowledge and
agree that:
(a) the Underwriters have been retained solely to act as underwriters in connection
with the sale of the Notes and that no fiduciary, advisory or agency relationship between
the Transferor, the Bank 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 the Transferor or the Bank on other matters;
(b) the price of the Notes set forth in this Agreement was established by the
Transferor and the Bank following discussions and arms-length negotiations with the
Underwriters, the Transferor and the Bank are capable of evaluating and understanding and
understand and accept the terms, risks and conditions of the transactions contemplated by
this Agreement;
(c) they have 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 the
Transferor and the Bank and that the Underwriters have no obligation to disclose such
interests and transactions to the Transferor or the Bank by virtue of any fiduciary,
advisory or agency relationship; and
(d) they waive, to the fullest extent permitted by law, any claims they may have
against the Underwriters for breach of fiduciary duty or alleged breach of fiduciary duty
and agree that the Underwriters shall have no liability (whether direct or indirect) to the
Transferor or the Bank in respect of such a fiduciary duty claim or to any person asserting
a fiduciary duty claim on behalf of or in right of the Transferor or the Bank, including
stockholders, employees or creditors of the Transferor and the Bank.
19. Non-Petition Covenant. Each of [ ] and [ ], acting on behalf of
itself and as a Representative hereby covenants and agrees that it shall not at any time acquiesce,
petition or otherwise invoke or cause the Transferor to invoke the process of the United States of
America, any State or other political subdivision thereof or any entity exercising executive,
legislative, judicial, regulatory, or administrative functions of or pertaining to government for
the purpose of commencing or sustaining a case by or against the Transferor under a federal or
state bankruptcy, insolvency or other similar law or appointing a receiver, liquidator, assignee,
trustee, custodian, sequestrator or other similar official of the Transferor or all or any part of
the property or the assets of the Transferor or ordering the winding up or the liquidation of the
affairs of the Transferor.
[Signatures Follow on Next Page]
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If you are in agreement with the foregoing, please sign two counterparts hereof and
return one to the Transferor whereupon this letter and your acceptance shall become a binding
agreement among the Transferor, the Bank and the Underwriters.
| Very truly yours, FIRST NATIONAL FUNDING LLC |
||||
| By: | FIRST NATIONAL FUNDING | |||
| CORPORATION, its Managing Member | ||||
| By: | ||||
| Name: | ||||
| Title: | ||||
| FIRST NATIONAL BANK OF OMAHA |
||||
| By: | ||||
| Name: | ||||
| Title: | ||||
The foregoing Agreement is
hereby confirmed and accepted
hereby confirmed and accepted
as of the date hereof:
[ ]
as Representative of the
Underwriters set forth herein
Underwriters set forth herein
| By: | ||||
| Name: | ||||
| Title: | ||||
[ ]
as Representative of the
Underwriters set forth herein
Underwriters set forth herein
| By: | ||||
| Name: | ||||
| Title: | ||||
S-1
SCHEDULE A
Class A Notes
Class A Notes
| Underwriters | Principal Amount of Class A Notes | |
[•]
|
$[•] | |
[•]
|
$[•] | |
[•]
|
$[•] | |
Total
|
$[•] |
[Class B Notes]
| Underwriters | Principal Amount of Class B Notes | |
[•]
|
$[•] | |
[•]
|
$[•] | |
[•]
|
$[•] | |
Total
|
$[•] |
[Class C Notes]
| Underwriters | Principal Amount of Class C Notes | |
[•]
|
$[•] | |
[•]
|
$[•] | |
[•]
|
$[•] | |
Total
|
$[•] |
Schedule A
[EXHIBIT A]
FORM OF TERM ASSET-BACKED SECURITIES LOAN FACILITY
UNDERTAKING
UNDERTAKING
[•]
[•], 20[ ]
This Term Asset-Backed Securities Loan Facility Undertaking (this “Undertaking”) is
executed as of the date first written above by FIRST NATIONAL BANK OF OMAHA (the “Sponsor”)
and FIRST NATIONAL FUNDING LLC (the “Transferor” and, together with the Sponsor, the
“Issuer Parties”). Reference is hereby made to (i) the final prospectus supplement, dated
[•] [•], 20[ ] (the “Prospectus Supplement”), and accompanied by the base prospectus,
dated [•] [•], 20[ ] (the “Base Prospectus”) (collectively, the “Offering
Memorandum”), relating to the $[•] aggregate principal amount of Class A Asset Backed Notes,
Series [20 ]-[•] (the “Specified Securities”), issued by the First National Master Note
Trust (the “Issuer”), (ii) the Master Agreement (the “Master Agreement”), by and
among the Federal Reserve Bank of New York, as lender (“Lender”), the primary dealers party
thereto (the “TALF Agents” and each, individually, a “TALF Agent”) and The Bank of
New York Mellon, as administrator and as custodian, executed in connection with the Term
Asset-Backed Securities Loan Facility (the “TALF Program”), and (iii) the certifications
and indemnities given by the Issuer Parties to Lender in connection with the Specified Securities
(the “Issuer Documents”).
SECTION 1. Definitions. Capitalized terms used but not defined herein shall have the
meanings specified in the Master Agreement. In addition, as used herein, the following terms shall
have the following meanings (such definition to be applicable to both the singular and plural forms
of such terms):
“Dealer Indemnified Party” means a Relevant Dealer and each person, if any, who
controls any Relevant Dealer within the meaning of either Section 15 of the Securities Act of 1933,
as amended or Section 20 of the Securities Exchange Act of 1934, as amended.
“Relevant Dealer” means any TALF Agent that is acting as agent on behalf of a Borrower
with respect to a Relevant Loan.
“Relevant Loan” means any Loan for which any of the Specified Securities have been
pledged to Lender as Collateral.
“TALF Provisions” means the portions of the Offering Memorandum that describe, or are
relevant to, the qualification of the Specified Securities as Eligible Collateral, including
without limitation the descriptions of the terms of the Specified Securities and the assets
generating collections or other funds from which the Specified Securities are to be paid.
SECTION 2. The Issuer Parties hereby represent, warrant and agree, for the benefit of each
Relevant Dealer, as follows:
(a) The Specified Securities constitute Eligible Collateral.
A-1
(b) The certifications contained in the Issuer Documents are true and correct, and the Issuer
Parties will promptly pay and perform their obligations under the Issuer Documents.
(c) No statement or information contained in the TALF Provisions is untrue as to any material
fact or omits any material fact necessary to make the same not misleading.
SECTION 3. Indemnity. (a) Each Issuer Party, jointly and severally, will indemnify
and hold harmless each Dealer Indemnified Party from and against any losses, claims, damages or
liabilities, joint or several, to which the Dealer Indemnified Parties or any of them may become
subject, insofar as such losses, claims, damages or liabilities (or actions in respect thereof)
arise out of or are based upon an Issuer Party’s breach of this Undertaking or the Issuer
Documents, and will reimburse each Dealer Indemnified Party for any actual legal or other expenses
reasonably incurred by the Dealer Indemnified Party in connection with investigating or defending
any such loss, claim, damage, liability or action as such expenses are incurred; provided, however,
that an Issuer Party shall not be liable to a Dealer Indemnified Party for such Dealer Indemnified
Party’s gross negligence, willful misconduct or fraudulent actions as determined by a court of
competent jurisdiction in a final, nonappealable order.
Promptly after receipt by a Dealer Indemnified Party of notice of the commencement of any action or
the assertion by a third party of a claim, such Dealer Indemnified Party will notify each Issuer
Party in writing of the commencement thereof; but the omission so to notify any such Issuer Party
will not (i) relieve it from any liability which it may have to any Dealer Indemnified Party except
and to the extent of any material prejudice to any such Issuer Party arising from such failure to
provide such notice and (ii) in any event, relieve it from any obligations to any Dealer
Indemnified Party other than the indemnification obligation provided in subsection (a) above. In
case any such action is brought against any Dealer Indemnified Party and it notifies the Issuer
Party of the commencement thereof, the Issuer Party will be entitled to participate therein and, to
the extent that it may wish, jointly with any other Issuer Party similarly notified, to assume the
defense thereof, with counsel reasonably satisfactory to such Dealer Indemnified Party (who shall
not, except with the consent of the Dealer Indemnified Party, be counsel to the Issuer Party),
provided, however, that if (x) the use of counsel chosen by the Issuer Party to represent the
Dealer Indemnified Party would present such counsel with a conflict of interest which, if such
counsel had been retained, would have required such counsel to withdraw from such representation,
(y) the Dealer Indemnified Party shall have been advised by counsel that there may be one or more
legal defenses available to it that are different from or additional to those available to the
Issuer Party or to other Dealer Indemnified Parties, or (z) the Issuer Party shall not have
employed counsel satisfactory to the Dealer Indemnified Party to represent the Dealer Indemnified
Party within a reasonable time after receipt by the Issuer Party of notice of the institution of
such action or proceeding, then, in each such case, (1) the Issuer Party shall not have the right
to direct the defense of such action on behalf of such Dealer Indemnified Party or Dealer
Indemnified Parties, (2) such Dealer Indemnified Party or Dealer Indemnified Parties shall have the
right to select separate counsel to defend such action on behalf of such Dealer Indemnified Party
or Dealer Indemnified Parties (provided that, if more than one Dealer Indemnified Party is subject
to the circumstances described in clause (y), then, to the extent permitted by the rules of
professional
A-2
conduct applicable to attorneys, all such Dealer Indemnified Parties shall be represented by one
such separate counsel) and (3) all costs and expenses of each such Dealer Indemnified Party in
connection with such action or proceeding shall be paid by the Issuer Party pursuant to subsection
(a) above, and after notice from the Issuer Party to such Dealer Indemnified Party of its election
so to assume the defense thereof and approval by such Dealer Indemnified Party of counsel appointed
to defend such action, the Issuer Party will not be liable to such Dealer Indemnified Party under
this Section for any legal or other expenses subsequently incurred by such Dealer Indemnified Party
in connection with the defense thereof other than reasonable costs of investigation unless, (i) the
Dealer Indemnified Party shall have employed separate counsel in accordance with this sentence or
(ii) the Issuer Party has authorized in writing the employment of counsel for the Dealer
Indemnified Party at the expense of the Issuer Party. No Issuer Party shall, without the prior
written consent of the Dealer Indemnified Party, effect any settlement of any pending or threatened
action in respect of which any Dealer Indemnified Party is or could have been a party and indemnity
could have been sought hereunder by such Dealer Indemnified Party unless such settlement includes
an unconditional release of such Dealer Indemnified Party from all liability on any claims that are
the subject matter of such action and does not include a statement as to, or an admission of,
fault, culpability or failure to act by or on behalf of such Dealer Indemnified Party.
(b) This indemnity remains an obligation of each Issuer Party notwithstanding termination of
the Master Agreement or the TALF Program or payment in full of the Relevant Loans, and is binding
upon each Issuer Party’s successors and assigns. Each Dealer Indemnified Party’s right to
indemnification hereunder shall be enforceable against each Issuer Party directly, without any
obligation to first proceed against any third party for whom such Dealer Indemnified Party may act,
and irrespective of any rights or recourse that such Issuer Party may have against any such third
party.
SECTION 4. The Issuer Parties hereby acknowledge (a) the existence of the Master Agreement and
the terms thereof and (b) that the Relevant Dealers are obtaining the Relevant Loans, pledging the
Specified Securities as collateral therefor and undertaking obligations, in each case as agents on
behalf of the Borrowers with respect thereto in reliance on the representations, warranties,
covenants and indemnities of the Issuer Parties set forth in this Undertaking. This Undertaking is
for the sole benefit of the Dealer Indemnified Parties in connection with the performance by a
Related Dealer of its obligations with respect to the TALF Program and not in its capacity as an
underwriter of the Specified Securities, and may not be relied upon by (i) the Dealer Indemnified
Parties for any other purpose or (ii) any direct or indirect purchaser or owner of the Specified
Securities, or any other Person claiming by or through any such purchaser or owner or any third
party beneficiary, for any purpose or in any circumstance, whether on the theory that the TALF
Agents act as their agents or otherwise.
SECTION 5. THIS UNDERTAKING SHALL BE GOVERNED BY, AND CONSTRUED IN ACCORDANCE WITH, THE LAWS
OF THE STATE OF NEW YORK, WITHOUT REFERENCE TO ITS CONFLICT OF LAW PROVISIONS, AND OBLIGATIONS,
RIGHTS AND REMEDIES OF THE PARTIES HEREUNDER SHALL BE DETERMINED IN ACCORDANCE WITH SUCH LAWS.
A-3
SECTION 6. This Undertaking may be executed in any number of counterparts, each of which shall
be deemed to be an original, but all such counterparts shall together constitute one and the same
Undertaking.
SECTION 7. Each Dealer Indemnified Party agrees that it shall not at any time acquiesce,
petition or otherwise invoke or cause the Issuer or the Transferor to invoke the process of the
United States of America, any State or other political subdivision thereof or any entity exercising
executive, legislative, judicial, regulatory or administrative functions of or pertaining to
government for the purpose of commencing or sustaining a case by or against the Issuer or the
Transferor under a federal or state bankruptcy, insolvency or similar law or appointing a receiver,
liquidator, assignee, trustee, custodian, sequestrator or other similar official of the Issuer or
the Transferor or all or any part of the property or assets of the Issuer or the Transferor or
ordering the winding up or liquidation of the affairs of the Issuer or the Transferor.
A-4
| FIRST NATIONAL BANK OF OMAHA | ||||
| By: | ||||
| Name: | ||||
| Title: | ||||
| FIRST NATIONAL FUNDING LLC |
||||
| By: | FIRST NATIONAL FUNDING | |||
| CORPORATION, its Managing Member | ||||
| By: | ||||
| Name: | ||||
| Title: | ||||
A-5
