EXHIBIT 1.1
EDUCATION FUNDING CAPITAL TRUST-III
$1,000,000,000 EDUCATION LOAN BACKED NOTES
SERIES A&B
UNDERWRITING AGREEMENT
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Citigroup Global Markets Inc. October 27, 2003
as Representative of the Underwriters named herein
Ladies and Gentlemen:
Education Lending Services, Inc. ("ELS"), a Delaware corporation, as
administrator of the business activities of the Depositor (as defined below),
has caused the Depositor to form a statutory trust under the laws of the State
of Delaware known as Education Funding Capital Trust-III (the "Trust"), to which
the Depositor has and will transfer Student Loans, and ELS proposes to cause the
Trust to sell to Citigroup Global Markets Inc. (the "Representative"), Xxxxxxx
X. Xxxxx & Co. and Fifth Third Securities, Inc. (collectively with the
Representative, the "Underwriters", and each individually, an "Underwriter"),
pursuant to the terms of this Underwriting Agreement (this "Agreement"),
Education Loan Backed Notes in the following Series and initial principal
amounts: $77,500,000 Education Loan Backed Notes, Series 2003A-1 (the "Series
A-1 Notes"), $118,500,000 Education Loan Backed Notes, Series 2003A-2 (the
"Series A-2 Notes"), $319,000,000 Education Loan Backed Notes, Series 2003A-3
(the "Series A-3 Notes"), $100,000,000 Education Loan Backed Notes, Series
2003A-4 (the "Series A-4 Notes"), $83,750,000 Education Loan Backed Notes,
Series 2003A-5 (the "Series A-5 Notes"), $83,750,000 Education Loan Backed
Notes, Series 2003A-6 (the "Series A-6 Notes"), $83,750,000 Education Loan
Backed Notes, Series 2003A-7 (the "Series A-7 Notes"), and $83,750,000 Education
Loan Backed Notes, Series 2003A-8 (the "Series A-8 Notes" and together with the
Series A-1 Notes, the Series A-2 Notes, the Series A-3 Notes, the Series A-4
Notes, the Series A-5 Notes, the Series A-6 Notes, and the Series A-7 Notes, the
"Series A Notes"), and $50,000,000 Education Loan Backed Notes, Series 2003B-1
(the "Series B Notes" and together with the Series A Notes, the "Notes").
Education Funding Capital I, LLC (the "Depositor"), a Delaware limited
liability company, will acquire a pool of Student Loans from Education Lending
Group, Inc. (the "Seller") pursuant to the Seller Transfer and Sale Agreement
dated as of October 1, 2003 (the "Seller Transfer and Sale Agreement") among the
Seller, the Depositor, Fifth Third Bank, as eligible lender trustee on behalf of
the Seller (the "Seller Eligible Lender Trustee"), and Fifth Third Bank, as
eligible lender trustee on behalf of the Depositor (the "Depositor Eligible
Lender Trustee"), which pool of Student Loans the Depositor will transfer to the
Trust pursuant to the
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Underwriting Agreement
Depositor Transfer and Sale Agreement dated as of October 1, 2003 (the
"Depositor Transfer and Sale Agreement) among the Depositor, the Trust, the
Depositor Eligible Lender Trustee, and Fifth Third Bank, as eligible lender
trustee on behalf of the Trust (the "Trust Eligible Lender Trustee"; in its
capacity as eligible lender trustee on behalf of the Seller, the Depositor and
the Trust, Fifth Third Bank is referred to herein as the "Eligible Lender
Trustee"). As of August 31, 2003, that pool of Student Loans had an outstanding
principal balance of $642,091,900.
The Trust was formed pursuant to a Trust Agreement dated as of September 3,
2003 (the "Original Trust Agreement") among the Depositor, Wilmington Trust
Company, a banking corporation formed under the laws of the State of Delaware,
as owner trustee of the Trust (the "Owner Trustee"), and Fifth Third Bank, as
co-owner trustee of the Trust (the "Co-Owner Trustee"). The Original Trust
Agreement was subsequently amended and restated by the Amended and Restated
Trust Agreement dated as of October 1, 2003 (the "Trust Agreement") among the
Depositor, the Owner Trustee, the Co-Owner Trustee, and the Trust Eligible
Lender Trustee.
ELS serves as administrator of the Depositor pursuant to the Administration
Agreement dated as of October 1, 2003 (the "Depositor Administration Agreement")
between ELS and the Depositor, and as administrator of the Trust pursuant to the
Administration Agreement dated as of October 1, 2003 (the "Trust Administration
Agreement"), between ELS and the Trust. Fifth Third Bank, a banking corporation
formed under the laws of the State of Ohio, acts as eligible lender trustee on
behalf of (i) the Seller pursuant to the Amended and Restated Eligible Lender
Trust Agreement dated as of July 22, 2003 (the "Seller Eligible Lender Trust
Agreement") between Fifth Third Bank and the Seller, (ii) the Depositor pursuant
to the Eligible Lender Trust Agreement dated as of May 1, 2002 (the "Depositor
Eligible Lender Trust Agreement") between Fifth Third Bank and the Depositor,
and (iii) the Trust pursuant to the Eligible Lender Trust Agreement dated as of
October 1, 2003 (the "Trust Eligible Lender Trust Agreement" and together with
the Seller Eligible Lender Trust Agreement and the Depositor Eligible Lender
Trust Agreement, the "Eligible Lender Trust Agreements") between Fifth Third
Bank and the Trust.
The Notes will be issued pursuant to an Indenture of Trust and a First
Supplemental Indenture of Trust, both dated as of October 1, 2003 (together, the
"Indenture"), among the Trust, Fifth Third Bank, as indenture trustee (the
"Indenture Trustee"), and the Trust Eligible Lender Trustee. Pursuant to the
Indenture, the Notes will be secured by, among other things, the Student Loans
to be acquired by the Trust.
As used in this Agreement, the term "Basic Documents" refers to the
following: (i) the Trust Agreement; (ii) the Indenture; (iii) the Eligible
Lender Trust Agreements, (iv) the Seller Transfer and Sale Agreement; (v) the
Depositor Transfer and Sale Agreement; (vi) the Master Servicing Agreement dated
as of October 1, 2003 among ELS, as master servicer (the "Master Servicer"), the
Trust, the Indenture Trustee and the Trust Eligible Lender Trustee; (vii) the
Student Loan Origination and Servicing Agreement dated as of October 1, 2003
(the "Great Lakes Subservicing Agreement") among Great Lakes Educational Loan
Services, Inc. ("Great Lakes"), the Trust Eligible Lender Trustee and the Master
Servicer; (viii) the Federal FFEL Servicing Agreement dated as of October 1,
2002 among ACS Education Services, Inc. ("ACS"
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Underwriting Agreement
and, together with Great Lakes, the "Subservicers"), the Trust Eligible Lender
Trustee and the Master Servicer, as supplemented by the Affiliate Servicing
Addendum dated as of October 1, 2003 among ACS, the Trust, the Trust Eligible
Lender Trustee and the Master Servicer (collectively, the "ACS Subservicing
Agreement" and, together with the Great Lakes Subservicing Agreement, the
"Subservicing Agreements"); (ix) the Bailment Notice and Acknowledgement dated
October 1, 2003 among the Trust, the Trust Eligible Lender Trustee, the
Indenture Trustee and Great Lakes; (x) the Bailment Notice and Acknowledgement
dated October 1, 2003 among the Trust, the Trust Eligible Lender Trustee, the
Indenture Trustee and ACS; (xi) the Depositor Administration Agreement; (xii)
the Trust Administration Agreement; (xiii) the Auction Agent Agreement dated as
of October 1, 2003 (the "Auction Agent Agreement") among the Trust, the
Indenture Trustee and Deutsche Bank Trust Company Americas, as auction agent
(the "Auction Agent"); (xiv) the Market Agent Agreement dated as of October 1,
2003 (the "Market Agent Agreement") among Citigroup Global Markets Inc., as
market agent, the Trust and the Indenture Trustee; (xv) the Calculation Agent
Agreement dated as of October 1, 2003 (the "Calculation Agent Agreement")
between Citigroup Global Markets Inc., the Trust and the Indenture Trustee;
(xvi) the Broker-Dealer Agreement dated as of October 1, 2003 between Citigroup
Global Markets Inc. and the Auction Agent; (xvii) the Broker-Dealer Agreement
dated as of October 1, 2003 between Xxxxxxx X. Xxxxx & Co. and the Auction Agent
(together with the Broker-Dealer Agreement referred to in (xvi) above, the
"Broker-Dealer Agreements"); (xviii) this Agreement; and (xix) the Notes. When
used with reference to a Person, the term "its Basic Documents" refers to the
Basic Documents to which that Person is a party.
Capitalized terms used but not defined in this Agreement shall have the
meanings ascribed to such terms in the Indenture.
1. Purchase and Sale of Notes.
(a) Subject to the terms and conditions and upon the basis of the
representations, warranties and covenants hereinafter set forth, the
Underwriters hereby agree, jointly and severally, to purchase from the Trust,
and the Seller, the Depositor and ELS (the Seller, the Depositor and ELS are
hereinafter referred to collectively as the "Responsible Parties") hereby agree,
jointly and severally, to cause the Trust to sell to the Underwriters, all (but
not less than all) of the Notes, dated as of their date of issuance, in the
principal amount and at the aggregate purchase price set forth on Appendix A,
attached hereto.
(b) It is understood that, pursuant to the effective Registration
Statement, the Underwriters propose to offer the Notes for sale to the public
(which may include selected dealers) as set forth in the Prospectus. The
Underwriters agree not to offer or sell the Notes in any state or jurisdiction
where registration, qualification or any filing to effect any exemption is
required under such state's or jurisdiction's securities or Blue Sky laws,
except where, with the consent of the Responsible Parties (which may be withheld
in the Responsible Parties' sole discretion), such registration, qualification
or filing has been completed. The Underwriters agree that all offers and sales
of the Notes will be made in accordance with applicable federal and state
securities laws and regulations.
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Underwriting Agreement
2. Closing. No later than 12:00 noon, New York City time, on October 31,
2003, or at such other time or on such earlier or later date as shall have been
mutually agreed upon by ELS and the Representative, ELS shall deliver, or cause
to be delivered the Notes to the Indenture Trustee to be held in its custody
pursuant to a FAST delivery arrangement with and on behalf of The Depository
Trust Company ("DTC"), which Notes shall be in form satisfactory to the
Representative and duly executed by the Co-Owner Trustee on behalf of the Trust,
and shall deliver a specimen copy of each executed and authenticated Note to the
Representative together with the other documents hereinafter mentioned; and the
Representative shall accept such delivery for the respective accounts of the
Underwriters and the Underwriters shall pay the purchase price of the Notes as
set forth in Appendix A by wire transfer in clearinghouse funds to the Indenture
Trustee. Such payment and delivery is herein called the "Closing" and the date
of the Closing is herein called the "Closing Date". The Notes (one Note for each
Series in the respective principal amount thereof unless otherwise required by
the rules and regulations of DTC) shall be made available to the Representative
for checking and delivery to the Indenture Trustee not less than 24 hours prior
to the Closing at a place designated by the Representative. The Notes may be
typewritten and shall be registered in the name of Cede & Co. ELS and the
Co-Owner Trustee on behalf of the Trust will file with DTC a Letter of
Representations, together with all riders and/or supplements thereto required by
DTC, to permit the Notes to be held in the custody of the Indenture Trustee
pursuant to a FAST delivery arrangement.
3. Representations, Warranties and Covenants of the Responsible Parties.
Each of the Responsible Parties represents and warrants to and agrees with the
Underwriters that:
(a) Registration statement on Form S-3 (No. 333-103502), including a
prospectus and such amendments thereto as may have been required to the date
hereof, relating to the Notes and the offering thereof from time to time in
accordance with Rule 415 under the Securities Act of 1933, as amended (the
"Act"), has been filed with the Securities and Exchange Commission (the "SEC")
and such registration statement, as amended, has become effective; such
registration statement, as amended, and the prospectus relating to the sale of
the Notes offered thereby constituting a part thereof, as from time to time
amended or supplemented (including the base prospectus, any prospectus
supplement filed with the Commission pursuant to Rule 424(b) under the Act, the
information deemed to be a part thereof pursuant to Rule 430A(b) under the Act,
and the information incorporated by reference therein) are respectively referred
to herein as the "Registration Statement" and the "Prospectus", respectively;
and the conditions to the use of a registration statement on Form S-3 under the
Act, as set forth in the General Instructions to Form S-3, and the conditions of
Rule 415 under the Act, have been satisfied with respect to the Registration
Statement.
(b) On the effective date of the Registration Statement, the Registration
Statement and the Prospectus conformed in all respects to the requirements of
the Act, the rules and regulations of the SEC (the "Rules and Regulations") and
the Trust Indenture Act of 1939, as amended, and the rules and regulations
thereunder (the "Trust Indenture Act"), and, except with respect to information
omitted pursuant to Rule 430A of the Act, did not include any untrue statement
of a material fact or, in the case of the Registration Statement, omit to state
any material fact required to be stated therein or necessary to make the
statements therein not misleading and, in the case of the Prospectus, omit to
state any material fact necessary to make the statements therein, in the light
of the circumstances
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Underwriting Agreement
under which they were made, not misleading, and on the date of this Agreement
and on the Closing Date, the Registration Statement and the Prospectus will
conform in all respects to the requirements of the Act, the Rules and
Regulations and the Trust Indenture Act, and neither of such documents included
or will include any untrue statement of a material fact or omit to state any
material fact required to be stated therein or necessary to make the statements
therein not misleading; provided, however, that the foregoing does not apply to
statements in or omissions from the Registration Statement or the Prospectus
based upon written information furnished to the Responsible Parties by the
Underwriter, specifically for use therein.
(c) The SEC has not issued and, to the best knowledge of the Responsible
Parties, is not threatening to issue any order preventing or suspending the use
of the Registration Statement.
(d) The Trust is a duly organized and validly existing Delaware statutory
trust and had or has, at the respective dates of their execution, full legal
rights, power and authority (i) to enter into its Basic Documents, (ii) to
authorize the issuance of the Notes and to issue, sell and deliver the Notes to
the Underwriters pursuant to the Indenture as provided herein, and (iii) to
carry out, give effect to and consummate the transactions contemplated by its
Basic Documents and the Prospectus.
(e) When delivered to and paid for by the Underwriters on the Closing Date
as provided herein, the Notes will be validly issued and outstanding limited
obligations of the Trust entitled to the benefits of the Indenture.
(f) All approvals, consents, authorizations, permits, elections and orders
of or filings or registrations with any governmental authority, board, agency or
commission having jurisdiction, including but not limited to, the United States
Department of Education under the Higher Education Act, that would constitute a
condition precedent to the performance by each of the Responsible Parties and
the Trust of their respective obligations under the Basic Documents have been
obtained and are in full force and effect, except such as may be required by the
blue sky laws of any jurisdiction in connection with the sale and distribution
of the Notes, for which no representation is being given.
(g) The Basic Documents to be executed by the Trust in connection with the
issuance and sale of the Notes (when executed and delivered by the respective
parties thereto) will constitute, legal, valid and binding obligations of the
Trust enforceable in accordance with their respective terms except as limited by
bankruptcy, reorganization, insolvency and other similar laws affecting
enforceability of creditors' rights generally and provided that the availability
of equitable remedies is subject to the application of equitable principles. The
Indenture has been duly qualified under the Trust Indenture Act with respect to
the Notes.
(h) To the knowledge of the Responsible Parties, no action, suit,
proceeding, inquiry or investigation, at law or in equity, before or by any
court, regulatory agency, public board or body, is pending or threatened in any
way affecting the existence of the Trust or seeking to restrain or to enjoin the
issuance, sale or delivery of the Notes, the application of the proceeds thereof
in accordance with the Indenture, or the collection or application of Revenues
or assets of the Trust pledged or to be pledged to pay the principal of and
interest on the Notes, or any other
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pledge thereof, or in any way contesting or affecting the validity or
enforceability of the Basic Documents, or any action on the part of the Trust
contemplated by any of said documents, or that, if adversely determined, would
have a material adverse effect on the financial condition or prospects of the
Trust, nor, to the knowledge of the Responsible Parties, is there any basis
therefor.
(i) The Responsible Parties shall furnish such information, execute such
instruments and take such other action in cooperation with the Underwriters as
the Underwriters may reasonably request to qualify the Notes for offer and sale
under the "blue sky" laws or other securities laws and regulations of such
states and other jurisdictions of the United States as the Underwriters may
designate; provided, however, that in no event shall any of the Responsible
Parties or the Trust be obligated to qualify to do business in any jurisdiction
where it is not now so qualified or take any action that would subject it to
service of process in suits, other than those arising out of the offering or
sale of the Notes, in any jurisdiction where it is not now subject.
(j) Between the date hereof and the Closing Date the Responsible Parties
shall not take, or cause the Trust to take, any action that would cause the
representations and warranties made herein to be untrue as of the Closing Date.
(k) The Trust is not and, after giving effect to the offering and sale of
the Notes and the application of the proceeds thereof as described in the
Prospectus, will not be an "investment company" as defined in the Investment
Company Act of 1940, as amended (the "1940 Act").
(l) None of the Responsible Parties has taken, nor will any of them take,
directly or indirectly, any action designed to or that might reasonably be
expected to cause or result in stabilization or manipulation of the price of the
Notes to facilitate the sale or resale of the Notes; it being understood and
agreed that no such action by any Underwriter shall be deemed an action of the
Responsible Parties.
(m) For the period beginning on the date of this Agreement and ending 90
days after the Closing Date, the Responsible Parties and any trust originated,
directly or indirectly, by the Responsible Parties will not, without the prior
written consent of the Representative, offer to sell or sell notes (other than
the Notes) collateralized by, or certificates evidencing an ownership interest
in, student loans.
(n) Other than as contemplated by this Agreement or as disclosed in the
Prospectus, there is no broker, finder or other party that is entitled to
receive from the Responsible Parties or the Trust any brokerage or finder's fee
or other fee or commission as a result of any of the transactions contemplated
by this Agreement.
4. Representations and Warranties of the Seller. The Seller represents
and warrants to and agrees with the Underwriters that:
(a) The Seller is a duly organized and validly existing corporation
organized under the laws of the State of Delaware with the power and authority
to own its properties and to conduct its business as such properties are
currently owned and such business is presently
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Underwriting Agreement
conducted, except for such power and authority the absence of which would not
have a material adverse effect on the Seller or its ability to consummate the
transactions contemplated by its Basic Documents.
(b) The Seller has full legal right, power, and authority to enter into
its Basic Documents and to carry out, give effect to, and consummate the
transactions contemplated thereby in accordance with the terms thereof.
(c) On or before the Closing Date, its Basic Documents will have been duly
authorized, executed and delivered by the Seller. The execution, delivery and
performance of its Basic Documents and the issuance and sale of the Notes and
compliance with the terms and provisions thereof will not result in a breach or
violation of any of the terms and provisions of, or constitute a default under,
the certificate of incorporation or bylaws of the Seller or any agreement or
instrument to which the Seller is a party or by which the Seller is bound or to
which any of the properties of the Seller is subject that could reasonably be
expected to have a material adverse effect on the transactions contemplated by
the Basic Documents.
(d) There are no legal or governmental proceedings pending or, to the
knowledge of the Seller, threatened, against the Seller, or to which the Seller
or any of its properties is subject, of a character required to be disclosed in
the Prospectus that are not disclosed in the Prospectus.
(e) The Seller is not and, after giving effect to the offering and sale of
the Notes and the application of the proceeds thereof as described in the
Prospectus, will not be an "investment company" as defined in the 1940 Act.
(f) The representations and warranties made by the Seller in its Basic
Documents will be true and correct in all material respects on and as of the
Closing Date.
5. Representations and Warranties of ELS. ELS represents and warrants to
and agrees with the Underwriters that:
(a) ELS is a duly organized and validly existing corporation organized
under the laws of the State of Delaware with the power and authority to own its
properties and to conduct its business as such properties are currently owned
and such business is presently conducted, except for such power and authority
the absence of which would not have a material adverse effect on ELS or its
ability to consummate the transactions contemplated by its Basic Documents .
(b) ELS has full legal right, power, and authority to enter into its Basic
Documents and to carry out, give effect to, and consummate the transactions
contemplated thereby in accordance with the terms thereof.
(c) On or before the Closing Date, its Basic Documents will have been duly
authorized, executed and delivered by ELS. The execution, delivery and
performance of its Basic Documents and the issuance and sale of the Notes and
compliance with the terms and provisions thereof will not result in a breach or
violation of any of the terms and provisions of, or constitute a default under,
the certificate of incorporation or bylaws of ELS or any agreement or instrument
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Underwriting Agreement
to which ELS is a party or by which ELS is bound or to which any of the
properties of ELS is subject that could reasonably be expected to have a
material adverse effect on the transactions contemplated by the Basic Documents.
(d) There are no legal or governmental proceedings pending or, to the
knowledge of ELS, threatened, against ELS, or to which ELS or any of its
properties is subject, of a character required to be disclosed in the Prospectus
that are not disclosed in the Prospectus.
(e) ELS is not and, after giving effect to the offering and sale of the
Notes and the application of the proceeds thereof as described in the
Prospectus, will not be an "investment company" as defined in the 1940 Act.
(f) The representations and warranties made by ELS in its Basic Documents
will be true and correct in all material respects on and as of the Closing Date.
6. Representations and Warranties of the Depositor. The Depositor
represents and warrants to and agrees with the Underwriters that:
(a) The Depositor is duly organized and validly existing as a Delaware
limited liability company with the power and authority to own its properties and
to conduct its business as such properties are currently owned and such business
is presently conducted, except for such power and authority the absence of which
would not have a material adverse effect on the Depositor or its ability to
consummate the transactions contemplated its Basic Documents.
(b) The Depositor has full legal right, power, and authority to enter into
its Basic Documents and to carry out, give effect to, and consummate the
transactions contemplated thereby in accordance with the terms thereof.
(c) On or before the Closing Date, its Basic Documents will have been duly
authorized, executed and delivered by the Depositor. The execution, delivery and
performance of its Basic Documents and the issuance and sale of the Notes and
compliance with the terms and provisions thereof will not result in a breach or
violation of any of the terms and provisions of, or constitute a default under,
the certificate of formation or the operating agreement of the Depositor or any
agreement or instrument to which the Depositor is a party or by which the
Depositor is bound or to which any of the properties of the Depositor is subject
that could reasonably be expected to have a material adverse effect on the
transactions contemplated by the Basic Documents.
(d) There are no legal or governmental proceedings pending or, to the
knowledge of the Depositor, threatened, against the Depositor, or to which the
Depositor or any of its properties is subject, of a character required to be
disclosed in the Prospectus that are not disclosed in the Prospectus.
(e) The Depositor is not and, after giving effect to the offering and sale
of the Notes and the application of the proceeds thereof as described in the
Prospectus, will not be an "investment company" as defined in the 1940 Act.
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Underwriting Agreement
(f) The representations and warranties made by the Depositor in its Basic
Documents will be true and correct in all material respects on and as of the
Closing Date.
7. Agreements of the Responsible Parties. The Responsible Parties each
agree with the Underwriters as follows:
(a) The Responsible Parties will prepare a supplement to the Prospectus
setting forth the amount of the Notes covered thereby and the terms thereof not
otherwise specified in the Prospectus, the price at which the Notes are to be
purchased by the Underwriters, either the initial public offering price or the
method by which the price at which the Notes are to be sold will be determined,
the selling concessions and reallowances, if any, and such other information as
the Representative and the Responsible Parties deem appropriate in connection
with the offering of the Notes, and the Responsible Parties will timely file or
cause to be filed such supplement to the prospectus with the SEC pursuant to
Rule 424(b) under the Act, but the Responsible Parties will not file any
amendments to the Registration Statement as in effect with respect to the Notes
or any amendments or supplements to the Prospectus, unless they shall first have
delivered copies of such amendments or supplements to the Underwriters, with
reasonable opportunity to comment on such proposed amendment or supplement or if
the Underwriters shall have reasonably objected thereto promptly after receipt
thereof; the Responsible Parties will immediately advise the Representative or
its counsel (i) when notice is received from the SEC that any post-effective
amendment to the Registration Statement has become or will become effective and
(ii) of any order or communication suspending or preventing, or threatening to
suspend or prevent, the offer and sale of the Notes or of any proceedings or
examinations that may lead to such an order or communication, whether by or of
the SEC or any authority administering any state securities or Blue Sky law, as
soon as the Responsible Parties are advised thereof, and will use their
reasonable best efforts to prevent the issuance of any such order or
communication and to obtain as soon as possible its lifting, if issued.
(b) If, at any time when the Prospectus relating to the Notes is required
to be delivered under the Act, any event occurs as a result of which such
Prospectus as then amended or supplemented would include an untrue statement of
a material fact or omit to state a material fact necessary to make the
statements therein, in the light of the circumstances under which they were
made, not misleading, or if it is necessary at any time to amend or supplement
the Prospectus to comply with the Act or the Rules and Regulations, the
Responsible Parties promptly will prepare and file with the SEC, an amendment or
supplement to such Prospectus that will correct such statement or omission or an
amendment that will effect such compliance.
(c) The Responsible Parties will immediately inform the Representative (i)
of the receipt by any of the Responsible Parties or the Trust of any
communication from the SEC or any state securities authority concerning the
offering or sale of the Notes and (ii) of the commencement of any lawsuit or
proceeding to which any of the Responsible Parties or the Trust is a party
relating to the offering or sale of the Notes.
(d) The Responsible Parties will furnish to the Underwriters, without
charge, copies of the Registration Statement (including all documents and
exhibits thereto or incorporated by
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Underwriting Agreement
reference therein), the Prospectus, and all amendments and supplements to such
documents relating to the Notes, in each case in such quantities as the
Underwriters may reasonably request.
(e) No amendment or supplement relating to or affecting the Notes will be
made to the Registration Statement or Prospectus unless the Representative shall
have previously been advised thereof and the Representative shall not have
reasonably objected thereto after being so advised.
(f) The Responsible Parties will cooperate with the Representative and
with its counsel in connection with the qualification of, or procurement of
exemptions with respect to, the Notes for offering and sale by the Underwriters
and by dealers under the securities or Blue Sky laws of such jurisdictions as
any Underwriter may designate and will file or cause the Trust to file such
consents to service of process or other documents necessary or appropriate in
order to effect such qualification or exemptions; provided that in no event
shall the Responsible Parties or the Trust be obligated to qualify to do
business in any jurisdiction where it is not now so qualified or to take any
action which would subject it to service of process in suits, other than those
arising out of the offering or sale of the Notes, in any jurisdiction where it
is not now so subject.
(g) The Responsible parties and the Trust consent to the use, in
accordance with the securities or Blue Sky laws of such jurisdictions in which
the Notes are offered by the Underwriters and by dealers, of the Prospectus.
(h) To the extent, if any, that the rating or ratings provided with
respect to the Notes by the rating agency or agencies that initially rate a
series of Notes is conditional upon the furnishing of documents or the taking of
any other actions by the Responsible Parties or the Trust, the Responsible
Parties shall cause to be furnished such documents and such other reasonable
actions to be taken.
(i) For so long as the Notes are outstanding, the Responsible Parties will
furnish to the Representative (i) as soon as available, a copy of each document
relating to the Trust or the Notes required to be filed with the SEC pursuant to
the Securities Exchange Act of 1934, as amended (the "Exchange Act") or any
order of the SEC thereunder, and (ii) such other information concerning the
Responsible Parties or the Trust as the Representative may reasonably request
from time to time insofar as such information reasonably relates to the
Registration Statement or the transactions contemplated by the Basic Documents.
(j) For a period from the date of this Agreement until the retirement of
the Notes, the Responsible Parties will deliver or cause to be delivered to the
Representative the annual statements of compliance and the annual independent
certified public accountants' reports furnished to the Indenture Trustee or the
Trust pursuant to the Master Servicing Agreement as soon as such statements and
reports are furnished to the Indenture Trustee or the Responsible Parties.
(k) On or before the date the Financed Student Loans are transferred to
the Trust, the Trust shall xxxx its accounting and other records, if any,
relating to the Financed Eligible Loans and the Responsible Parties shall xxxx
their respective computer records relating to the Financed Eligible Loans to
show the absolute ownership by the Trust Eligible Lender Trustee, as eligible
lender of, and the interest of the Trust in, the initial Financed Eligible
Loans, and from and after
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Underwriting Agreement
each Closing Date the Trust and the Responsible Parties will take such actions
with respect to the respective records of each with regard to any additional
acquired Eligible Loans at the time of the acquisition thereof by the Trust
Eligible Lender Trustee on behalf of the Trust, and the Trust and the
Responsible Parties shall not take, nor permit any other person to take, any
action inconsistent with the ownership of, and the interest of the Trust in, the
Financed Eligible Loans, other than as permitted by the Basic Documents.
(l) If this Agreement shall terminate or shall be terminated after
execution and delivery pursuant to any provisions hereof (otherwise than by
notice given by an Underwriter terminating this Agreement pursuant to Section 11
hereof) or if this Agreement shall be terminated by the Representative because
of any failure or refusal on the part of the Responsible Parties to comply with
the terms or fulfill any of the conditions of this Agreement, the Seller agrees
to reimburse the Underwriters for all out-of-pocket expenses (including
reasonable fees and expenses of their counsel) reasonably incurred in connection
herewith. In no event shall the Responsible Parties or the Trust be liable to
the Underwriters for loss of anticipated profits from the transactions
contemplated by this Agreement.
(m) The net proceeds from the sale of the Notes hereunder will be applied
substantially in accordance with the description set forth in the Prospectus.
(n) The Seller's sale and transfer of the Financed Eligible Loans to the
Depositor and the Depositor's sale and transfer of Financed Eligible Loans to
the order of the Trust Eligible Lender Trustee on behalf of the Trust as of the
applicable sale date will vest in the Trust Eligible Lender Trustee on behalf of
the Trust all of the Seller's and the Depositor's right, title and interest
therein, subject to no prior lien, mortgage, security interest, pledge, adverse
claim, charge or other encumbrance.
(o) The Trust's assignment of the Financed Eligible Loans to the Indenture
Trustee pursuant to the Indenture will vest in the Indenture Trustee, for the
benefit of the Noteholders, a first priority perfected security interest
therein, subject to no prior lien, mortgage, security interest, pledge, adverse
claim, charge or other encumbrance.
(p) If, at the time the Registration Statement became effective, any
information shall have been omitted therefrom in reliance upon Rule 430A under
the Act, then, immediately following the execution of this Agreement, the
Responsible Parties will prepare, and file or transmit for filing with the SEC
in accordance with such Rule 430A and Rule 424(b) under the Act, copies of an
amended Prospectus containing all information so omitted.
(q) As soon as practicable, but not later than 16 months after the date of
this Agreement, the Responsible Parties will cause the Trust to make generally
available to the Noteholders an earnings statement covering a period of at least
12 months beginning after the later of (i) the effective date of Registration
Statement, (ii) the effective date of the most recent post-effective amendment
to the Registration Statement to become effective prior to the date of this
Agreement and (iii) the date of the Trust's most recent Annual Report or Form
10-K filed with the SEC prior to the date of this Agreement, which will satisfy
the provisions of Section 11(a) of the Act.
11
Underwriting Agreement
(r) For the period beginning on the date of this Agreement and ending 90
days after the Closing Date, the Responsible Parties and any trust originated,
directly or indirectly, by the Responsible Parties will not, without the prior
written consent of the Representative, offer to sell or sell notes (other than
the Notes) collateralized by, or certificates evidencing an ownership interest
in, student loans.
8. Indemnification and Contribution. (a) The Responsible Parties agree to
jointly and severally indemnify and hold harmless each Underwriter and each
person, if any, who controls an Underwriter within the meaning of Section 15 of
the Act or Section 20 of the Exchange Act, from and against any and all losses,
claims, damages, liabilities and expenses (including reasonable costs of
investigation) arising out of or based upon any untrue statement or alleged
untrue statement of a material fact contained in the Registration Statement, the
Prospectus, or in any amendment or supplement thereto, or the preliminary
Prospectus Supplement dated October 14, 2003 (the "Preliminary Prospectus"), or
arising out of or based upon any omission or alleged omission to state therein a
material fact required to be stated therein or necessary to make the statements
therein not misleading, except insofar as such losses, claims, damages,
liabilities or expenses arise out of or are based upon any untrue statement or
omission or alleged untrue statement or omission which has been made therein or
omitted therefrom in reliance upon and in conformity with the information
relating to the Underwriter furnished in writing to the Responsible Parties by
or on behalf of any Underwriter through the Representative expressly for use
therein, it being understood that the only such information furnished by the
Underwriter consists of the information described as such in Section 13 of this
Agreement; provided, however, that the foregoing indemnity with respect to the
Prospectus or the Preliminary Prospectus shall not inure to the benefit of any
Underwriter (or any person controlling such Underwriter) from whom the person
asserting any such loss, claim, damage or liability purchased Notes, if such
person did not receive a copy of the Prospectus (as then amended or
supplemented) at or prior to the written confirmation of the sale of such Notes
to such person and if the Prospectus (as so amended or supplemented) would have
cured the defect giving rise to such loss, claim, damage or liability.
(b) If any action, suit or proceeding shall be brought against an
Underwriter or any person controlling an Underwriter in respect of which
indemnity may be sought against the Responsible Parties, such Underwriter or
such controlling person shall promptly notify the parties against whom
indemnification is being sought (the "indemnifying parties"), but the omission
so to notify the indemnifying party will not relieve it from any liability which
it may have to an indemnified party except to the extent that the indemnifying
party is materially prejudiced by such omission. Such indemnifying parties shall
assume the defense thereof, including the employment of counsel and payment of
all reasonable fees and expenses. Such Underwriter or any such controlling
person shall have the right to employ separate counsel in any such action, suit
or proceeding and to participate in the defense thereof, but the fees and
expenses of such counsel shall be at the expense of the Underwriter or such
controlling person unless (i) the indemnifying parties have agreed in writing to
pay such fees and expenses, (ii) the indemnifying parties have failed to assume
the defense and employ counsel within a reasonable period of time, or (iii) the
named parties to any such action, suit or proceeding (including any impleaded
parties) include both the Underwriter or such controlling person and the
indemnifying parties and the Underwriter or such controlling person shall have
been advised by its counsel that representation of such indemnified party and
any indemnifying party by the same counsel would be inappropriate under
applicable standards of
12
Underwriting Agreement
professional conduct (whether or not such representation by the same counsel has
been proposed) due to actual or potential differing interests between them (in
which case the indemnifying party shall not have the right to assume the defense
of such action, suit or proceeding on behalf of the Underwriter or such
controlling person). It is understood, however, that the indemnifying parties
shall, in connection with any one such action, suit or proceeding or separate
but substantially similar or related actions, suits or proceedings in the same
jurisdiction arising out of the same general allegations or circumstances, be
liable for the reasonable fees and expenses of only one separate firm of
attorneys (in addition to any local counsel) at any time for the Underwriter and
controlling persons not having actual or potential differing interests with the
Underwriter or among themselves, which firm shall be designated in writing by
the Underwriter, and that all such fees and expenses shall be reimbursed on a
monthly basis as provided in paragraph (a) hereof. The indemnifying parties
shall not be liable for any settlement of any such action, suit or proceeding
effected without their written consent, but if settled with such written
consent, or if there be a final judgment for the plaintiff in any such action,
suit or proceeding, the indemnifying parties agree to indemnify and hold
harmless the Underwriter and any such controlling person from and against any
loss, claim, damage, liability or expense by reason of such settlement or
judgment to the extent provided in paragraph (a).
(c) Each Underwriter agrees severally but not jointly to indemnify and
hold harmless the Responsible Parties and their respective directors and
officers, and any person who controls the Responsible Parties within the meaning
of Section 15 of the Act or Section 20 of the Exchange Act to the same extent as
the indemnity from the Responsible Parties to such Underwriter set forth in
paragraph (a) hereof, but only with respect to information relating to such
Underwriter furnished in writing by or on behalf of such Underwriter through the
Representative expressly for use in the Registration Statement, the Prospectus,
or any amendment or supplement thereto, or any related preliminary prospectus,
it being understood that the only such information furnished by the Underwriters
consists of the information described in Section 13 of this Agreement. If any
action, suit or proceeding shall be brought against the Responsible Parties, any
of their directors or officers, or any such controlling person based on the
Registration Statement, the Prospectus, or any amendment or supplement thereto,
or any related preliminary prospectus and in respect of which indemnity may be
sought against an Underwriter pursuant to this paragraph (c), such Underwriter
shall have the rights and duties given to the Responsible Parties by paragraph
(b) above (except that if the Responsible Parties shall have assumed the defense
thereof no Underwriter shall be required to do so, but may employ separate
counsel therein and participate in the defense thereof, but the fees and
expenses of such counsel shall be at such Underwriter's expense, except as
otherwise provided in paragraph (b) above), and the Responsible Parties, their
respective directors and officers, and any such controlling person shall have
the rights and duties given to such Underwriter by paragraph (b) above.
(d) If the indemnification provided for in this Section 8 is unavailable
to an indemnified party under paragraphs (a) or (c) hereof in respect of any
losses, claims, damages, liabilities or expenses referred to therein, then an
indemnifying party, in lieu of indemnifying such indemnified party, shall
contribute to the amount paid or payable by such indemnified party as a result
of such losses, claims, damages, liabilities or expenses (i) in such proportion
as is appropriate to reflect the relative benefits received by the Responsible
Parties on the one hand and the applicable Underwriter on the other hand from
the offering of the Notes, or (ii) if the allocation provided by clause (i)
above
13
Underwriting Agreement
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 Responsible Parties on the one hand and such
Underwriter on the other in connection with the statements or omissions that
resulted in such losses, claims, damages, liabilities or expenses, as well as
any other relevant equitable considerations. The relative benefits received by
the Responsible Parties on the one hand and such Underwriter on the other shall
be deemed to be in the same proportion as the total net proceeds from the
offering of the Notes (before deducting expenses) received by the Responsible
Parties bear to the total underwriting discounts and commissions received by
such Underwriter. The relative fault of the Responsible Parties on the one hand
and such Underwriter on the other hand shall be determined by reference to,
among other things, whether the untrue or alleged untrue statement of a material
fact or the omission or alleged omission to state a material fact relates to
information supplied by the Responsible Parties on the one hand or by such
Underwriter on the other hand and the parties' relative intent, knowledge,
access to information and opportunity to correct or prevent such statement or
omission.
(e) The Responsible Parties and the Underwriters agree that it would not
be just and equitable if contribution pursuant to this Section 8 were determined
by a pro rata allocation or by any other method of allocation that does not take
account of the equitable considerations referred to in paragraph (d) above. The
amount paid or payable by an indemnified party as a result of the losses,
claims, damages, liabilities and expenses referred to in paragraph (d) above
shall be deemed to include, subject to the limitations set forth above, any
legal or other expenses reasonably incurred by such indemnified party in
connection with investigating any claim or defending any such action, suit or
proceeding. Notwithstanding the provisions of this Section 8, no Underwriter
shall be required to contribute any amount in excess of the underwriting
discounts and commissions applicable to the Notes hereunder. 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.
(f) Any losses, claims, damages, liabilities or expenses for which an
indemnified party is entitled to indemnification or contribution under this
Section 8 shall be paid by the indemnifying party to the indemnified party as
such losses, claims, damages, liabilities or expenses are incurred. The
indemnity and contribution agreements contained in this Section 8 and the
representations and warranties of the Responsible Parties and the Underwriters
set forth in this Agreement shall remain operative and in full force and effect,
regardless of (i) any investigation made by or on behalf of an Underwriter, the
Responsible Parties or any person controlling any of them or their respective
directors or officers, (ii) acceptance of any Notes and payment therefor
hereunder, and (iii) any termination of this Agreement. A successor to any
Underwriter, any of the Responsible Parties or any person controlling any of
them or their respective directors or officers, shall be entitled to the
benefits of the indemnity, contribution and reimbursement agreements contained
in this Section 8.
(g) No indemnifying party shall, without the prior written consent of the
indemnified party, effect any settlement of any pending or threatened proceeding
in respect of which any indemnified party is or could have been a party and
indemnity could have been sought hereunder by such indemnified party, unless
such settlement (i) does not include a statement as to or admission of, fault,
culpability or a failure to act by or on behalf of any such indemnified party,
and (ii) includes
14
Underwriting Agreement
an unconditional release of such indemnified party from all liability on claims
that are the subject matter of such proceeding.
9. Conditions of Closing. The obligations of the Underwriters hereunder
shall be subject (a) to the performance by the Trust of its obligations to be
performed hereunder or under the Indenture at or prior to the Closing, (b) to
the accuracy of and compliance with the representations, warranties and
covenants of the Responsible Parties contained herein, in each case as of the
time of delivery of this Agreement and as of the Closing, and (c) in the
discretion of the Underwriters, to the following further conditions:
(a) All actions required to be taken and all filings required to be made
by the Responsible Parties and the Trust under the Act prior to the sale of the
Notes shall have been duly taken or made. At and prior to the Closing Date, no
stop order suspending the effectiveness of the Registration Statement shall have
been issued and no proceedings for that purpose shall have been instituted or,
to the knowledge of the Responsible Parties or the Underwriters, shall be
contemplated by the SEC.
(b) Since the respective dates as of which information is given in the
Registration Statement (or any amendment or supplement thereto), except as may
otherwise be stated therein or contemplated thereby, there shall not have
occurred (i) any change, or any development involving a prospective change, in
or affecting the condition (financial or other), business, properties, net
worth, or results of operations of the Responsible Parties not contemplated by
the Registration Statement, which in the opinion of the Representative, would
materially adversely affect the market for the Notes, or (ii) any event or
development which makes any statement made in the Registration Statement or
Prospectus untrue in any material respect or which, in the opinion of the
Responsible Parties and their counsel or the Underwriters and their counsel,
requires the filing of any amendment to or change in the Registration Statement
or Prospectus in order to state a material fact required by any law to be stated
therein or necessary in order to make the statements therein not misleading, if
amending or supplementing the Registration Statement or Prospectus to reflect
such event or development would, in the opinion of the Representative,
materially adversely affect the market for the Notes.
(c) None of the Responsible Parties shall have failed at or prior to the
Closing Date to have performed or complied in any material respect with any of
their respective agreements herein contained and required to be performed or
complied with by it hereunder at or prior to the Closing Date.
(d) Fitch Ratings ("Fitch"), Xxxxx'x Investors Services, Inc. ("Moody's"),
and Standard & Poor's ("S&P") shall have (1) rated the Series A Notes "AAA",
"Aaa", and "AAA", respectively, and (2) rated the Series B Notes at least "A",
"A2", and "A", respectively, and there shall not have been any announcement by
any of Fitch, Moody's or S&P that (i) it is downgrading any of its ratings
assigned to the Notes or (ii) it is reviewing its ratings assigned the Notes
with a view to possible downgrading, or with negative implications, or direction
not determined.
15
Underwriting Agreement
(e) At or prior to the Closing, the Representative shall have received the
following documents:
(1) opinions of Xxxxxxxx Xxxx LLP, as counsel to the Responsible
Parties and the Trust, dated the Closing Date and addressed to the Trust,
the Indenture Trustee, the Representative, Fitch, Moody's and S&P in form
and substance reasonably satisfactory to the Representative and its counsel
regarding (i) general corporate authority and other matters, (ii) true
sale, non-consolidation for bankruptcy purposes and other matters, (iii)
the accuracy and completeness of the Prospectus and the Registration
Statement and certain matters arising under the Trust Indenture Act and the
1940 Act, and (iv) the perfection and priority of the security interests in
the Financed Student Loans and the Trust Estate;
(2) opinions of Xxxxxxxx & Shohl LLP, as counsel to Fifth Third Bank,
in its capacity as Indenture Trustee, Co-Owner Trustee, and Eligible Lender
Trustee, dated the Closing Date and addressed to the Trust, the Responsible
Parties, the Representative, Fitch, Moody's and S&P in form and substance
reasonably satisfactory to the Representative and its counsel, regarding
the organization and authority of the Indenture Trustee, Co-Owner Trustee,
and Eligible Lender Trustee and other matters;
(3) opinions of Squire, Xxxxxxx & Xxxxxxx L.L.P., dated the Closing
Date, (i) addressed to the Representative in its capacity as counsel to the
Underwriters in form and substance reasonably satisfactory to the
Representative, and (ii) addressed to the Trust, the Responsible Parties
and the Representative in form and substance reasonably satisfactory to the
Representative regarding tax matters;
(4) opinions of Xxxxxxxx, Xxxxxx & Finger, dated the Closing Date and
addressed to Trust, the Indenture Trustee, the Representative, Fitch,
Moody's and S&P, (a) as counsel for the Owner Trustee, and (b) as special
Delaware counsel for the Trust, in each case in form and substance
reasonably satisfactory to the Representative and its counsel;
(5) an opinion of counsel for each Guarantor, dated the Closing Date
and addressed to the Trust, the Responsible Parties, the Indenture Trustee,
the Representative, Fitch, Moody's and S&P, in form and substance
reasonably acceptable to the Representative and its counsel;
(6) a certificate of each Guarantor, dated the Closing Date and
signed by the chief financial officer or other officer of the Guarantor
acceptable to the Representative, in form and substance reasonably
satisfactory to the Representative and its counsel;
(7) an opinion of counsel for each Subservicer, dated the Closing
Date and addressed to the Responsible Parties, the Indenture Trustee, the
Representative, in form and substance reasonably satisfactory to the
Representative and its counsel, Fitch, Xxxxx'x and S&P;
16
Underwriting Agreement
(8) a certificate of each Subservicer, dated the Closing Date and
signed by the chief financial officer or other officer of the Subservicer
acceptable to the Representative, in form and substance reasonably
satisfactory to the Representative and its counsel;
(9) a certificate, dated the Closing Date and signed by executive
officers of the each of the Responsible Parties to the effect that all the
representations and warranties of the Responsible Parties contained in
their Basic Documents shall be true and correct in all material respects on
and as of the date thereof and on and as of the Closing Date as if made on
and as of the Closing Date;
(10) A "Ratings Letter" from each of Fitch, Moody's, and S&P setting
forth the ratings required under Section 9(d) hereof and otherwise
satisfactory to the Representative and counsel to the Underwriters;
(11) Evidence satisfactory to the Representative that, on or before
the Closing Date, UCC-1 financing statements have been or are being filed
in the office of the Secretary of State of Delaware, reflecting (i) the
transfer of the interest of the Seller in the Financed Student Loans and
the proceeds thereof to the Depositor, (ii) the transfer of the interest of
the Depositor in the Financed Student Loans and the proceeds thereof to the
Trust, and (iii) the grant of the security interest by the Trust in the
Trust Estate (including the Financed Student Loans) and the proceeds
thereof to the Indenture Trustee;
(12) Note specimens and a copy of the written order of the Trust to
authenticate and deliver the Notes;
(13) An executed copy or certified copy of an executed copy of each of
the Basic Documents, each Guarantee Agreement and such further certificates
and documents as the Representative shall have reasonably requested;
(14) The letter from PricewaterhouseCoopers dated the Closing Date,
and in form and substance satisfactory to the Representative, to the effect
that they have carried out certain specified procedures, not constituting
an audit, with respect to certain information regarding the Financed
Eligible Loans and setting forth the results of such specified procedures;
(15) Evidence satisfactory to the Representative of the completion of
all actions necessary to effect the transfer of the Financed Eligible Loans
as described in the Prospectus and the recordation thereof on the Seller's,
the Depositor's, the Trust's and the Subservicers' computer systems; and
(16) Such additional legal opinions, certificates, instruments and
other documents as the Representative or counsel to the Underwriters may
reasonably request to evidence the truth and accuracy, as of the date
hereof and as of the Closing Date, of the Responsible Parties'
representations and warranties contained herein and of the statements and
information contained in the Prospectus and the due performance and
satisfaction by the Trust at or prior to the Closing of all agreements then
to be performed
17
Underwriting Agreement
and all conditions then to be satisfied by the Trust in connection with the
transactions contemplated by Basic Documents and the Prospectus.
If the Responsible Parties shall be unable to satisfy the conditions to the
obligations of the Underwriters contained in this Agreement, this Agreement
shall terminate and neither the Underwriters nor the Responsible Parties shall
be under any further obligation hereunder, except as provided in Section 7(l)
and Section 10 hereof.
10. Expenses. ELS agrees to cause the Trust to pay or to otherwise cause
the payment of the following costs and expenses and all other costs and expenses
incident to the performance by ELS and the Trust of their respective obligations
hereunder: (i) the preparation, printing or reproduction of the Registration
Statement, each Prospectus and each amendment or supplement to any of them, and
each Basic Document; (ii) the printing (or reproduction) and delivery (including
postage, air freight charges and charges for counting and packaging) of such
copies of the each Preliminary Prospectus and each Prospectus and all amendments
or supplements to any of them as may be reasonably requested for use in
connection with the offering and sale of the Notes; (iii) the preparation,
printing, authentication, issuance and delivery of certificates for the Notes;
(iv) the qualification of the Notes for offer and sale under the securities or
"blue sky" laws of such states as ELS and the Representative may agree
(including the reasonable fees, expenses and disbursements of counsel for the
Underwriters relating to the preparation, printing or reproduction, and delivery
of any blue sky survey prepared in connection with such qualification); and (v)
the fees and/or disbursements of (A) counsel for the Trust and the Responsible
Parties, (B) the Indenture Trustee and the Eligible Lender Trustee and their
counsel, (C) the Owner Trustee and its counsel, (D) the Auction Agent and its
counsel, (E) The Depository Trust Company in connection with the book-entry
registration of the Notes, and (F) Fitch, Moody's and S&P for rating the Notes.
11. Effective Date of Agreement. This Agreement shall become effective
upon the execution and delivery hereof by all the parties hereto. Until such
time as this Agreement shall have become effective, it may be terminated by the
Responsible Parties, by notifying the Representative, or by the Representative,
by notifying the Responsible Parties.
Any notice under this Section 11 may be given by telegram, telecopy or
telephone but shall be subsequently confirmed by letter.
12. Termination of Agreement. This Agreement shall be subject to
termination in the absolute discretion of the Representative, without liability
on the part of any Underwriter, by notice to the Responsible Parties, if prior
to the Closing Date, (i) trading in securities generally on the New York Stock
Exchange shall have been suspended or materially limited, (ii) a general
moratorium on commercial banking activities in New York shall have been declared
by either Federal or New York state authorities, (iii) there shall have occurred
any outbreak or escalation of hostilities or other international or domestic
calamity, crisis or change in political, financial or economic conditions, the
effect of which on the financial markets of the United States is such as to make
it, in the reasonable judgment of the Representative, impracticable or
inadvisable to commence or continue the offering of the Notes on the terms set
forth in the Prospectus, or to enforce contracts for the resale of the Notes by
the Underwriters, (iv) legislation shall be enacted by the Congress of the
00
Xxxxxxxxxxxx Xxxxxxxxx
Xxxxxx Xxxxxx or a decision by a court of the United States or the Tax Court of
the United States shall be rendered, or an officially published ruling,
regulation, proposed regulation or official statement by or on behalf of the
Treasury Department of the United States, the Internal Revenue Service or any
other governmental agency shall be made, with respect to federal taxation upon
revenues or other income of the general character expected to be pledged under
the Indenture or upon interest received on securities of the general character
of the Notes, or which would have the effect of changing, directly or
indirectly, the federal income tax consequences of interest on securities of the
general character of the Notes in the hands of the holders thereof, which in the
opinion of counsel to the Representative materially affects the market price of
the Notes, or (v) legislation shall be enacted by the States of Delaware or
Ohio, or a decision by a court of competent jurisdiction of the States of
Delaware or Ohio or any administrative tribunal of the States of Delaware or
Ohio or other governmental agency or department thereof shall be rendered with
respect to taxation by the States of Delaware or Ohio or any of their political
subdivisions upon revenues or other income of the general character expected to
be pledged under the Indenture, or upon interest received on securities of the
general character of the Notes, or which would have the effect of changing,
directly or indirectly, the tax consequences under the States of Delaware or
Ohio tax law of interest on securities of the general character of the Notes in
the hands of the holders thereof, which in the opinion of counsel to the
Representative materially affects the market price of the Notes. Notice of such
termination may be given to the Responsible Parties, by telegram, telecopy or
telephone and shall be subsequently confirmed by letter.
13. Information Furnished by the Underwriter. The statements set forth
under the heading "Plan of Distribution" in the Prospectus Supplement dated
October __, 2003 constitute the only information furnished by or on behalf of
the Underwriters as such information is referred to in Sections 3(b) and 8
hereof, and each Underwriter confirms that such statements relating to such
Underwriter are correct.
14. Computational Materials. (a) It is understood that the Representative
may prepare and provide to prospective investors certain Computational Materials
(as defined below) in connection with the Trust's offering of the Notes, subject
to the following conditions:
(1) The Representative shall comply with all applicable laws and
regulations in connection with the use of Computational Materials including
the No-Action Letter of May 20, 1994 issued by the SEC to Xxxxxx, Xxxxxxx
Acceptance Corporation I, Xxxxxx, Peabody & Co. Incorporated and Xxxxxx
Structured Asset Corporation, as made applicable to other issuers and
underwriters by the SEC in response to the request of the Public Securities
Association dated May 24, 1994, and the No-Action Letter of February 17,
1995 issued by the SEC to the Public Securities Association (collectively,
the "Xxxxxx/PSA Letters").
(2) As used herein, "Computational Materials" and the term "ABS Term
Sheets" shall have the meanings given such terms in the Xxxxxx/PSA Letters,
but shall include only those Computational Materials that have been
prepared or delivered to prospective investors by or at the direction of
the Representative.
19
Underwriting Agreement
(3) The Representative shall provide the Responsible Parties and the
Trust with representative forms of all Computational Materials prior to
their first use, to the extent such forms have not previously been approved
by the Responsible Parties for use by the Underwriters. The Representative
shall provide to the Responsible Parties and the Trust, for filing on Form
8-K as provided in Section 14(b) hereof, copies of all Computational
Materials that are to be filed with the SEC pursuant to the Xxxxxx/PSA
Letters. The Representative may provide copies of the foregoing in a
consolidated or aggregated form. All Computational Materials described in
this subsection (a)(3) must be provided to the Responsible Parties not
later than 12:00 p.m., New York City time, one business day before filing
thereof is required pursuant to the terms of this Agreement.
(4) If the Representative does not provide the Computational
materials to the Responsible Parties pursuant to subsection (a)(3) above,
the Underwriters shall be deemed to have represented, as of the applicable
Closing Date, that they did not provide any prospective investors with any
information in written or electronic form in connection with the offering
of the Notes that is required to be filed with the SEC in accordance with
the Xxxxxx/PSA Letters.
(5) In the event of any delay in the delivery by the Representative
to the Responsible Parties and the Trust of all Computational Materials
required to be delivered in accordance with subsection (a)(3) above, the
Responsible Parties shall have the right to delay the release of the
Prospectus to investors or to the Underwriters, to delay the Closing Date
and to take other appropriate actions in each case as necessary in order to
allow the Responsible Parties and the Trust to comply with their agreement
set forth in Section 14(b) hereof to file the Computational Materials by
the time specified therein.
(b) The Responsible Parties and the Trust shall file the Computational
Materials (if any) provided to them by the Representative under Section 14(a)(3)
hereof with the SEC pursuant to a Current Report on Form 8-K no later than 5:30
p.m., New York City time, on the date required pursuant to the Xxxxxx/PSA
Letters
15. Representation of Underwriters. The Representative shall act for the
several Underwriters in connection with this financing, and any action under
this Agreement taken by the Representative will be binding upon all the
Underwriters.
16. Miscellaneous.
(a) All notices, demands, and formal actions hereunder shall be in writing
and mailed, telegraphed or delivered to the following address or such other
address as either of the parties shall specify.
The Representative:
Citigroup Global Markets Inc.
000 Xxxxxxxxx Xxxxxx, 00/xx/ Xxxxx
Xxx Xxxx, Xxx Xxxx 00000
20
Underwriting Agreement
Attention: Xxxx X. Xxxxxxx
The Responsible Parties:
c/o Education Lending Services, Inc.
0 Xxxx Xxxxxx Xxxxxx, Xxxxx 000
Xxxxxxxxxx, XX 00000
Attention: Xxxxx X. Xxxxx
(b) This Agreement will inure to the benefit of and be binding upon the
parties hereto and their successors and assigns, and will not confer any rights
upon any other Person. The terms "successors" and "assigns" shall not include
any purchaser of any of the Notes from any Underwriter merely because of such
purchase.
(c) The respective indemnities, agreements, representations, warranties
and other statements of the Responsible Parties, the Trust, or their officers
and of the Underwriters set forth in or made pursuant to this Agreement or
contained in certificates of officers of the Responsible Parties submitted
pursuant hereto shall remain operative and in full force and effect, regardless
of any investigation or statement as to the results thereof, made by or on
behalf of the Underwriters, the Responsible Parties, the Trust or any of their
respective representatives, officers of directors or any controlling person, and
will survive delivery of and payment for the Notes or termination or
cancellation of this Agreement.
(d) The indemnity agreement of the Responsible Parties contained in
Section 8 of this Agreement shall be in addition to any liability which the
Responsible Parties may otherwise have. The indemnity agreement of the
Underwriters contained in Section 8 of this Agreement shall be in addition to
any liability which the Underwriters may otherwise have.
(e) Section or paragraph headings have been inserted in this Agreement as
a matter of convenience of reference only, and it is agreed that such Section
headings are not a part of this Agreement and will not be used in the
interpretation of any provisions of this Agreement.
(f) This Agreement shall not be assigned by the Trust or the Underwriters
without the written consent of the Trust and each Underwriter.
(g) If any provision of this Agreement shall be held or deemed to be or
shall, in fact, be inoperative, invalid or unenforceable as applied in any
particular case in any jurisdiction because it conflicts with any provisions of
any constitution, statute, rule of public policy, or any other reason, such
circumstances shall not have the effect of rendering the provision in question
inoperable or unenforceable in any other case or circumstance, or of rendering
any other provision or provisions of this Agreement invalid, inoperative or
unenforceable to any extent whatever.
(h) This Agreement shall be governed by and construed in accordance with
the laws of the State of New York applicable to contracts made or to be
performed within the State of New York without giving effect to conflict of laws
principles thereof. The Responsible Parties and the Trust hereby submit to the
non-exclusive jurisdiction of the Federal and state courts in
21
Underwriting Agreement
the Borough of Manhattan in The City of New York in any suit or proceeding
arising out of or relating to this Agreement or the transactions contemplated
hereby.
(i) Notwithstanding anything to the contrary herein or in the Indenture,
any obligation of the Trust created by or arising out of this Agreement shall be
a limited obligation of the Trust, payable solely from Trust Estate available
therefor under and in accordance with the Indenture, and shall not constitute a
charge against the general credit of the Trust.
(j) This Agreement may be executed in several counterparts, each of which
shall be regarded as an original and all which shall constitute one and the same
document.
22
Underwriting Agreement
Please confirm that the foregoing correctly sets forth the agreement among
the Responsible Parties, the Trust, and the Underwriters.
Very truly yours,
EDUCATION LENDING GROUP, INC.
By: /s/ Xxxxx X. Xxxxx
-------------------------------------
Name: Xxxxx X. Xxxxx
Title: Senior Vice President-Finance
EDUCATION LENDING SERVICES, INC.
By: /s/ Xxxxx X. Xxxxx
-------------------------------------
Name: Xxxxx X. Xxxxx
Title: Senior Vice President-Finance
EDUCATION FUNDING CAPITAL I, LLC
By: /s/ Xxxxx X. Xxxxx
-------------------------------------
Name: Xxxxx X. Xxxxx
Title: Senior Vice President-Finance
EDUCATION FUNDING CAPITAL TRUST-III
by Fifth Third Bank, not in its
individual capacity, but solely as
Co-Owner Trustee on behalf of the Trust
By: /s/ Xxxxxx X. Xxxxxxx-XxXxxxx
-------------------------------------
Name: Xxxxxx X. Xxxxxxx-XxXxxxx
Title: Assistant Vice President and
Senior Trust Officer
Confirmed as of the date
first above mentioned.
Citigroup Global Markets Inc.
Acting on behalf of itself and as
Representative of the Underwriters
named herein
By: /s/ Xxxx X. Xxxxxxx
-------------------------------------
Name: Xxxx X. Xxxxxxx
Title: Director
Underwriting Agreement
APPENDIX A
Allocation of Notes between Underwriters:
----------------------------------------
Citigroup Fifth Third
Global Xxxxxxx X. Securities,
Series of Notes Markets Inc. Xxxxx & Co. Inc. Total
--------------------------------------------------------------------------------
Series A-1 Notes.... $ 77,500,000 $ $ $ 77,500,000
Series A-2 Notes.... 118,500,000 118,500,000
Series A-3 Notes.... 319,000,000 319,000,000
Series A-4 Notes.... 100,000,000 100,000,000
Series A-5 Notes.... 83,750,000 83,750,000
Series A-6 Notes.... 83,750,000 83,750,000
Series A-7 Notes.... 83,750,000 83,750,000
Series A-8 Notes.... 83,750,000 83,750,000
Series B-1 Notes.... 50,000,000 50,000,000
----------------------------------------------------------
Total............... $900,000,000 $ 100,000,000 $ 1,000.000.000
==========================================================
Interest Rates and Purchase Price:
----------------------------------
LIBOR Notes:
Original
Principal Underwriters'
Series of Notes Amount Interest Rate Price Fee
------------------ ------------ ----------------------- ----- -------------
Series A-1 Notes.. $ 77,500,000 3-Month LIBOR plus 0.04% 100% 0.2500%
Series A-2 Notes.. 118,500,000 3-Month LIBOR plus 0.10% 100% 0.2952%
Series A-3 Notes.. 319,000,000 3-Month LIBOR plus 0.27 100% 0.2952%
A-1
Underwriting Agreement
Auction Rate Notes:
Original
Principal Underwriters'
Series of Notes Amount Initial Rate Price Fee
------------------ ------------- -------------- ----------- ---------------
Series A-4 Notes.. $ 100,000,000 1.130% 100% 0.2952%
Series A-5 Notes.. 83,750,000 1.130% 100% 0.2952%
Series A-6 Notes.. 83,750,000 1.130% 100% 0.2952%
Series A-7 Notes.. 83,750,000 1.130% 100% 0.2952%
Series A-8 Notes.. 83,750,000 1.135% 100% 0.2952%
Series B-1 Notes.. 50,000,000 1.250% 100% 0.3013
A-2
Underwriting Agreement
