EXECUTION COPY
LB-UBS COMMERCIAL MORTGAGE TRUST 2002-C4,
COMMERCIAL MORTGAGE PASS-THROUGH CERTIFICATES, SERIES 2002-C4
UNDERWRITING AGREEMENT
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As of September 26, 2002
▇▇▇▇▇▇ Brothers Inc.
▇▇▇ ▇▇▇▇▇▇▇ ▇▇▇▇▇▇
▇▇▇ ▇▇▇▇, ▇▇▇ ▇▇▇▇ ▇▇▇▇▇
UBS Warburg LLC
▇▇▇▇ ▇▇▇▇▇▇ ▇▇ ▇▇▇ ▇▇▇▇▇▇▇▇
▇▇▇ ▇▇▇▇, ▇▇▇ ▇▇▇▇ ▇▇▇▇▇
Credit Suisse First Boston Corporation
▇▇ ▇▇▇▇▇▇▇ ▇▇▇▇▇▇
▇▇▇ ▇▇▇▇, ▇▇▇ ▇▇▇▇ ▇▇▇▇▇
▇▇▇▇▇▇▇ ▇▇▇▇▇ Barney Inc.
▇▇▇ ▇▇▇▇▇▇▇▇▇ ▇▇▇▇▇▇
▇▇▇ ▇▇▇▇, ▇▇▇ ▇▇▇▇ ▇▇▇▇▇
Ladies and Gentlemen:
Structured Asset Securities Corporation, a Delaware corporation (the
"Company"), proposes to cause the issuance of, and to sell to ▇▇▇▇▇▇ Brothers
Inc. ("▇▇▇▇▇▇"), UBS Warburg LLC ("UBSW"; and, together with ▇▇▇▇▇▇, the "Lead
Underwriters"), Credit Suisse First Boston Corporation ("CSFB"); and ▇▇▇▇▇▇▇
▇▇▇▇▇ Barney Inc. ("Salomon" and, collectively with ▇▇▇▇▇▇, UBSW and CSFB, the
"Underwriters"), the mortgage pass-through certificates that are identified on
Schedule I attached hereto (the "Certificates").
The Certificates will evidence beneficial ownership interests in a trust
fund (the "Trust Fund") to be formed by the Company and consisting primarily of
a segregated pool (the "Mortgage Pool") of multifamily and commercial mortgage
loans (the "Mortgage Loans"). Certain of the Mortgage Loans (the "UBS Mortgage
Loans") will be acquired by the Company from UBS Warburg Real Estate Investments
Inc. ("UBSWREI"), pursuant to a mortgage loan purchase agreement dated as of the
date hereof (the "UBS Mortgage Loan Purchase Agreement"), between the Company,
UBSWREI and UBS Principal Finance LLC ("UBSPF"). The other Mortgage Loans (the
"Holdings Mortgage Loans") will be acquired by the Company from ▇▇▇▇▇▇ Brothers
Holdings Inc., doing business as ▇▇▇▇▇▇ Capital, a division of ▇▇▇▇▇▇ Brothers
Holdings Inc. ("Holdings" and, together with UBSWREI, the "Mortgage Loan
Sellers"), pursuant to a mortgage loan purchase agreement dated as of the date
hereof (the "Holdings Mortgage Loan Purchase Agreement"; and, together with the
UBS Mortgage Loan Purchase Agreement, the "Mortgage Loan Purchase Agreements"),
between the Company and Holdings. In connection with the sale by UBSWREI to the
Company of the UBS Mortgage Loans, UBSWREI, UBS(USA), Inc. ("UBS(USA)"), the
Company and the Underwriters entered into an indemnification agreement dated as
of the date hereof (the "UBS Indemnification Agreement"). In connection with the
sale by Holdings to the Company of the Holdings Mortgage Loans, Holdings, the
Company and the Underwriters also entered into an indemnification agreement
dated as of the date hereof (the "Holdings Indemnification Agreement"; and,
together with the UBS Indemnification Agreement, the "Indemnification
Agreements").
The Certificates will be issued under a pooling and servicing agreement to
be dated as of September 11, 2002 (the "Pooling and Servicing Agreement"), among
the Company as depositor, LaSalle Bank, National Association as trustee (the
"Trustee"), Wachovia Bank, National Association as master servicer (the "Master
Servicer"), Lennar Partners, Inc. as special servicer (the "Special Servicer")
and ABN AMRO Bank N.V. as fiscal agent (the "Fiscal Agent"). The Certificates
and the Mortgage Loans are described more fully in the Prospectus (as defined
below), which the Company has furnished to the Underwriters. Capitalized terms
used but not defined herein have the respective meanings assigned thereto in the
Prospectus.
The Certificates are part of a series of mortgage pass-through certificates
that evidence beneficial ownership interests in the Trust Fund and are being
issued pursuant to the Pooling and Servicing Agreement. The other certificates
of such series will be retained by the Company or privately placed with a
limited number of institutional investors.
1. REPRESENTATIONS, WARRANTIES AND COVENANTS OF THE COMPANY. The Company
represents, warrants and agrees with the respective Underwriters that:
(a) A registration statement on Form S-3 (No. 333-73338) with respect to
the Certificates has been prepared by the Company and filed with the Securities
and Exchange Commission (the "Commission"), and complies as to form in all
material respects with the requirements of the Securities Act of 1933, as
amended (the "1933 Act"), and the rules and regulations of the Commission
thereunder, including Rule 415, and has become effective under the 1933 Act. As
used in this Underwriting Agreement (this "Agreement" or the "Underwriting
Agreement"), (i) "Registration Statement" means that registration statement and
all exhibits thereto, as amended or supplemented to the date of this Agreement;
(ii) "Basic Prospectus" means the prospectus included in the Registration
Statement at the time it became effective, or as subsequently filed with the
Commission pursuant to paragraph (b) of Rule 424 of the 1933 Act; (iii)
"Prospectus Supplement" means the prospectus supplement specifically relating to
the Certificates, as most recently filed with, or transmitted for filing to, the
Commission pursuant to paragraph (b) of Rule 424 of the 1933 Act; (iv)
"Prospectus" means the Basic Prospectus, together with the Prospectus
Supplement; (v) "Preliminary Prospectus Supplement" means any preliminary form
of the Prospectus Supplement that has heretofore been filed pursuant to
paragraph (b) of Rule 424 of the 1933 Act; and (vi) "Preliminary Prospectus"
means the Basic Prospectus, together with any Preliminary Prospectus Supplement.
The aggregate principal amount of the Certificates does not exceed the remaining
amount of mortgage-backed securities that may be offered and sold under the
Registration Statement as of the date hereof.
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(b) The Registration Statement and the Prospectus, at the time the
Registration Statement became effective and on the date of this Agreement,
complied, and (in the case of any amendment or supplement to any such document
filed with the Commission after the date as of which this representation is
being made) will comply, as to form in all material respects with the
requirements of the 1933 Act and the rules and regulations of the Commission
thereunder; and the Registration Statement and the Prospectus do not, and (in
the case of any amendment or supplement to any such document filed with the
Commission after the date as of which this representation is being made) will
not, contain an untrue statement of a material fact or omit to state any
material fact required to be stated therein or necessary to make the statements
therein not misleading; provided, however, that the Company makes no
representation or warranty as to (i) information contained in or omitted from
the Registration Statement or the Prospectus, or any amendment or supplement
thereto, in reliance upon and in conformity with written or electronic
information furnished to the Company by the Underwriters specifically for
inclusion therein, (ii) the information contained in or omitted from the
Prospectus, or any amendment or supplement thereto, in reliance upon and
conformity with (A) the Master Tape (it being acknowledged that the Master Tape
was used to prepare the Prospectus Supplement and any Preliminary Prospectus
Supplement, including, without limitation, Annex ▇-▇, ▇▇▇▇▇ ▇-▇, ▇▇▇▇▇ ▇-▇,
▇▇▇▇▇ A-4 and Annex B to each of the Prospectus Supplement and any Preliminary
Prospectus Supplement and the accompanying diskette, and any Computational
Materials and ABS Term Sheets (each as defined in Section 4 hereof) with respect
to the Certificates), (B) the representations and warranties of either Mortgage
Loan Seller set forth in or made pursuant to the related Mortgage Loan Purchase
Agreement, or (C) any other information concerning the Mortgage Loan Seller
Matters furnished to the Company or the Underwriters by either Mortgage Loan
Seller, (iii) the information regarding the Mortgage Loan Seller Matters (as
defined below) contained in or omitted from the Prospectus Supplement, or any
amendment or supplement thereto, under the headings "Summary of Prospectus
Supplement--The Underlying Mortgage Loans and the Mortgaged Real Properties",
"Risk Factors--Risks Related to the Underlying Mortgage Loans" and "Description
of the Mortgage Pool" or on Annex ▇-▇, ▇▇▇▇▇ ▇-▇, ▇▇▇▇▇ ▇-▇, ▇▇▇▇▇ ▇-▇ and Annex
B thereto or on the accompanying diskette, (iv) the information contained in or
omitted from any Computational Materials or ABS Term Sheets, or any amendment or
supplement thereto, incorporated by reference in the Registration Statement, any
Preliminary Prospectus or the Prospectus (or any amendment thereof or supplement
thereto) by a reason of a filing made in accordance with Section 5(h) hereof, or
(v) the information contained in or omitted from the Special Valley Fair Mall
Financial Information, which financial information was filed as part of the
Registration Statement as an exhibit to a current report on Form 8-K and
incorporated by reference into the Prospectus. The "Master Tape" consists of the
compilation of underlying information and data regarding the Mortgage Loans
covered by the Independent Accountants Report on Applying Agreed Upon Procedures
dated September 26, 2002, as supplemented to the Closing Date, and rendered by
Deloitte & Touche LLP. The "Mortgage Loan Seller Matters" consist of the
following matters: the Mortgage Loans and the underlying real properties
securing the Mortgage Loans; the related loan documents and the obligors
thereunder; and the Mortgage Loan Sellers. "Special Valley Fair Mall Financial
Information" means the financial information relating to the Valley Fair Mall
Mortgaged Property referred to in the Prospectus Supplement under the headings
"Incorporation by Reference", "Description of the Mortgage Pool--Significant
Underlying Mortgage Loans--The Valley Fair Mall Mortgage Loan--Additional
Financial Information" and "Experts".
(c) The Company has been duly incorporated and is validly existing as a
corporation in good standing under the laws of the State of Delaware with
corporate power and authority to own, lease or operate its properties and to
conduct its business as now conducted by it and to enter into and perform its
obligations under this Agreement, the Pooling and Servicing Agreement and the
Mortgage Loan Purchase
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Agreements; and the Company is duly qualified as a foreign corporation to
transact business and is in good standing in each jurisdiction in which such
qualification is required, whether by reason of the ownership or leasing of
property or the conduct of business.
(d) As of the date hereof, as of the date on which the Prospectus
Supplement is first filed pursuant to Rule 424 under the 1933 Act, as of the
date on which, prior to the Closing Date, any amendment to the Registration
Statement becomes effective, as of the date on which any supplement to the
Prospectus Supplement is filed with the Commission, and as of the Closing Date,
there has not and will not have been (i) any request by the Commission for any
further amendment to the Registration Statement or the Prospectus or for any
additional information, (ii) any issuance by the Commission of any stop order
suspending the effectiveness of the Registration Statement or the institution or
threat of any proceeding for that purpose or (iii) any notification with respect
to the suspension of the qualification of the Certificates for sale in any
jurisdiction or any initiation or threat of any proceeding for such purpose.
(e) This Agreement has been duly authorized, executed and delivered by
the Company, and the Pooling and Servicing Agreement and the respective Mortgage
Loan Purchase Agreements, when executed and delivered as contemplated hereby and
thereby, will have been duly authorized, executed and delivered by the Company;
and, assuming due authorization, execution and delivery hereof and thereof by
the other parties hereto and thereto, this Agreement constitutes, and the
Pooling and Servicing Agreement and the respective Mortgage Loan Purchase
Agreements, when so executed and delivered will constitute, legal, valid and
binding agreements of the Company, enforceable against the Company in accordance
with their respective terms, except as enforceability may be limited by (i)
bankruptcy, insolvency, reorganization, receivership, moratorium or other
similar laws affecting the enforcement of the rights of creditors generally,
(ii) general principles of equity, whether enforcement is sought in a proceeding
in equity or at law, and (iii) public policy considerations underlying the
securities laws, to the extent that such public policy considerations limit the
enforceability of the provisions of any such agreement that purport or are
construed to provide indemnification for securities law liabilities.
(f) As of the Closing Date, the Certificates and the Pooling and
Servicing Agreement will conform in all material respects to the respective
descriptions thereof contained in the Prospectus. As of the Closing Date, the
Certificates will be duly and validly authorized and, when duly and validly
executed, authenticated and delivered in accordance with the Pooling and
Servicing Agreement to the Underwriters against payment therefor as provided
herein, will be duly and validly issued and outstanding and entitled to the
benefits of the Pooling and Servicing Agreement.
(g) At the Closing Date, each of the representations and warranties of
the Company set forth in the Pooling and Servicing Agreement will be true and
correct in all material respects.
(h) The Company is not in violation of its certificate of incorporation
or by-laws or in default under any agreement, indenture or instrument the effect
of which violation or default would be material to the Company or which
violation or default would have a material adverse affect on the performance of
its obligations under this Agreement, the Pooling and Servicing Agreement or
either of the Mortgage Loan Purchase Agreements. The execution, delivery and
performance by the Company of this Agreement, the Pooling and Servicing
Agreement and the respective Mortgage Loan Purchase Agreements do not and will
not conflict with or result in a breach of any term or provision of the
certificate of incorporation or by-laws of the Company or conflict with, result
in a breach, violation or acceleration of, or constitute a default under, the
terms of any indenture or other agreement or instrument to which the
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Company is a party or by which it or any of its material assets is bound, or any
statute, order, rule or regulation applicable to the Company of any state or
federal court, regulatory body, administrative agency or governmental body
having jurisdiction over the Company.
(i) There is no action, suit or proceeding against the Company pending,
or, to the knowledge of the Company, threatened, before any court, arbitrator,
administrative agency or other tribunal (i) asserting the invalidity of this
Agreement, the Pooling and Servicing Agreement, either of the Mortgage Loan
Purchase Agreements or the Certificates, (ii) seeking to prevent the issuance of
the Certificates or the consummation of any of the transactions contemplated by
this Agreement, the Pooling and Servicing Agreement or either of the Mortgage
Loan Purchase Agreements, (iii) that might materially and adversely affect the
performance by the Company of its obligations under, or the validity or
enforceability of, this Agreement, the Pooling and Servicing Agreement, either
of the Mortgage Loan Purchase Agreements or the Certificates or (iv) seeking to
affect adversely the federal income tax attributes of the Certificates as
described in the Prospectus.
(j) There are no contracts, indentures or other documents of a character
required by the 1933 Act or by the rules and regulations thereunder to be
described or referred to in the Registration Statement or the Prospectus or to
be filed as exhibits to the Registration Statement which have not been so
described or referred to therein or so filed or incorporated by reference as
exhibits thereto.
(k) No authorization, approval or consent of or filing with any court or
governmental authority or agency is necessary in connection with the offering,
issuance or sale of the Certificates pursuant to or as contemplated by this
Agreement and the Pooling and Servicing Agreement, except such as have been, or
as of the Closing Date will have been, obtained or completed, as applicable, or
such as may otherwise be required under applicable state securities laws in
connection with the purchase and the offer and sale of the Certificates by the
Underwriters, and except any recordation or filing of the respective assignments
of the Mortgage Loans to the Trustee pursuant to the Pooling and Servicing
Agreement that have not been completed.
(l) The Company possesses all material licenses, certificates,
authorities or permits issued by the appropriate state, federal or foreign
regulatory agencies or bodies necessary to conduct the business now operated by
it, and the Company has not received any notice of proceedings relating to the
revocation or modification of any such license, certificate, authority or permit
which, singly or in the aggregate, if the subject of any unfavorable decision,
ruling or finding, would materially and adversely affect the condition,
financial or otherwise, or the earnings, business affairs or business prospects
of the Company.
(m) Any taxes, fees and other governmental charges payable by the Company
in connection with the execution and delivery of this Agreement, the Pooling and
Servicing Agreement or either of the Mortgage Loan Purchase Agreements or the
issuance and sale of the Certificates (other than such federal, state and local
taxes as may be payable on the income or gain recognized therefrom), have been
or will be paid at or prior to the Closing Date.
(n) Neither the Company nor the Trust Fund is, and neither the issuance
and sale of the Certificates in the manner contemplated by the Prospectus nor
the activities of the Trust Fund pursuant to the Pooling and Servicing Agreement
will cause the Company or the Trust Fund to be, an "investment company" or under
the control of an "investment company" as such terms are defined in the
Investment Company Act of 1940, as amended (the "1940 Act").
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(o) Under generally accepted accounting principles ("GAAP") and for
federal income tax purposes, the Company will report the transfer of the
Mortgage Loans to the Trustee in exchange for the Certificates and the sale of
the Certificates to the Underwriters pursuant to this Agreement as a sale of the
interests in the Mortgage Loans evidenced by the Certificates. The consideration
received by the Company upon the sale of the Certificates to the Underwriters
will constitute at least reasonably equivalent value and fair consideration for
the Certificates. The Company will be solvent at all relevant times prior to,
and will not be rendered insolvent by, the transfer of the Mortgage Loans to the
Trustee on behalf of the Trust Fund and the sale of the Certificates to the
Underwriters. The Company is not selling the Certificates to the Underwriters or
transferring the Mortgage Loans to the Trustee on behalf of the Trust Fund with
any intent to hinder, delay or defraud any of the creditors of the Company.
(p) No proceedings looking toward merger, liquidation, dissolution or
bankruptcy of the Company are pending or contemplated.
(q) At the Closing Date, the respective classes of Certificates shall
have been assigned ratings no lower than those set forth in Schedule I hereto by
the nationally recognized statistical rating organizations identified in
Schedule I hereto (the "Rating Agencies").
2. PURCHASE AND SALE. Subject to the terms and conditions and in
reliance upon the representations and warranties herein set forth, the Company
agrees to sell to each Underwriter, and each Underwriter agrees, severally and
not jointly, to purchase from the Company, at the purchase price set forth on
Schedule I hereto, Certificates of each class thereof having the actual
principal amount set forth next to the name of such Underwriter on Schedule II
hereto. Each of the Underwriters shall only be required to purchase the actual
principal amount of the Certificates of each class thereof set forth next to
such Underwriter's name on Schedule II hereto. There will be added to the
purchase price of the Certificates an amount equal to interest accrued thereon
pursuant to the terms thereof from September 11, 2002 to but excluding the
Closing Date.
Each Underwriter hereby represents and warrants that, under GAAP and for
federal income tax purposes, it will report its acquisition of Certificates,
pursuant to this Agreement, as a purchase of assets and not as a secured
lending.
3. PAYMENT AND DELIVERY. The closing for the purchase and sale of the
Certificates hereunder shall occur at the offices of Sidley ▇▇▇▇▇▇ ▇▇▇▇▇ & ▇▇▇▇
LLP, ▇▇▇ ▇▇▇▇▇▇▇ ▇▇▇▇▇▇, ▇▇▇ ▇▇▇▇, ▇▇▇ ▇▇▇▇ ▇▇▇▇▇, at 10:00 a.m. New York City
time, on October 8, 2002 or at such other location, time and date as shall be
mutually agreed upon by the Lead Underwriters and the Company (such time and
date of closing, the "Closing Date"). Delivery of the Certificates shall be made
through the Same Day Funds Settlement System of the Depository Trust Company
("DTC"). Payment shall be made to the Company in immediately available Federal
funds wired to such bank as may be designated by the Company (or by such other
method of payment as may be mutually agreed upon by the Company and any
particular Underwriter), against delivery of the Certificates. The Certificates
will be made available for examination by the Underwriters not later than 3:00
p.m. New York City time on the last business day prior to the Closing Date.
References herein, including, without limitation, in the Schedules hereto,
to actions taken or to be taken following the Closing Date with respect to any
Certificates that are to be delivered through the facilities of DTC shall
include, if the context so permits, actions taken or to be taken with respect to
the interests in such Certificates as reflected on the books and records of DTC.
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4. OFFERING BY THE UNDERWRITERS.
(a) It is understood that the Underwriters propose to offer the
Certificates for sale to the public, including, without limitation, in and from
the State of New York, as set forth in the Prospectus Supplement. It is further
understood that the Company, in reliance upon Policy Statement 105 has not and
will not file the offering pursuant to Section 352-e of the General Business Law
of the State of New York with respect to the Certificates which are not
"mortgage related securities" as defined in the 1934 Act (as defined below).
Accordingly, each Underwriter covenants and agrees with the Company that sales
of such Certificates made by such Underwriter in the State of New York will be
made only to institutional investors within the meaning of Policy Statement 105.
(b) The Underwriters may prepare and provide (and acknowledge that they
have prepared and provided) to prospective investors certain Computational
Materials or ABS Term Sheets in connection with the offering of the
Certificates. In this regard, each Underwriter represents and warrants to, and
covenants with, the Company that:
(i) Such Underwriter has complied and shall comply with the
requirements of the no-action letter, dated May 20, 1994, issued by the
Commission to ▇▇▇▇▇▇, Peabody Acceptance Corporation I, ▇▇▇▇▇▇, ▇▇▇▇▇▇▇ &
Co. Incorporated and ▇▇▇▇▇▇ Structured Asset Corporation, as made
applicable to other issuers and underwriters by the Commission in response
to the request of the Public Securities Association, dated May 27, 1994
(collectively, the "▇▇▇▇▇▇/PSA Letter"), and the requirements of the
no-action letter, dated February 17, 1995, issued by the Commission to the
Public Securities Association (the "PSA Letter" and, together with the
▇▇▇▇▇▇/PSA Letter, the "No-Action Letters").
(ii) For purposes hereof, "Computational Materials", "ABS Term
Sheets," "Structural Term Sheets" and "Collateral Term Sheets" shall have
the respective meanings given such terms in the No-Action Letters.
(iii) All Computational Materials and ABS Term Sheets in respect of
the Certificates provided to prospective investors by such Underwriter have
borne or shall bear, as the case may be, a legend in a form previously
approved by the Company or its counsel.
(iv) Such Underwriter has not distributed and shall not distribute
any such Computational Materials or ABS Term Sheets in respect of the
Certificates, the forms and methodology of which are not in accordance with
this Agreement. Such Underwriter has provided or shall provide, as the case
may be, to the Company, for filing pursuant to a Current Report on Form 8-K
as provided in Section 5(h) hereof, copies (in such format as required by
the Company) of all such Computational Materials and ABS Term Sheets. Such
Underwriter may provide copies of the foregoing in a consolidated or
aggregated form including all information required to be filed. All
Computational Materials and ABS Term Sheets described in this paragraph
(b)(iv) must be or must have been, as applicable, provided to the Company
in paper or electronic format suitable for filing with the Commission not
later than 10:00 a.m. (New York City time) at least one business day before
filing thereof is or was, as the case may be, required pursuant to the
terms of the No-Action Letters.
(v) All information included in any Computational Materials and ABS
Term Sheets in respect of the Certificates provided to prospective
investors by such Underwriter has been
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or shall be generated based on substantially the same methodology and
assumptions as are used to generate the information in the Prospectus
Supplement as set forth therein; provided that such Computational Materials
and ABS Term Sheets may include information based on alternative
methodologies or assumptions if specified therein. If any Computational
Materials or ABS Term Sheets in respect of the Certificates provided to
prospective investors by such Underwriter were based on assumptions with
respect to the Mortgage Pool that differ from the Prospectus Supplement in
any material respect or on Certificate structuring assumptions (except in
the case of Computational Materials when the different structuring terms
were hypothesized and so described) that were revised in any material
respect prior to the printing of the Prospectus, then to the extent that it
has not already done so, such Underwriter shall immediately inform the
Company and, upon the direction of the Company, and if not corrected by the
Prospectus, shall prepare revised Computational Materials and/or ABS Term
Sheets, as the case may be, based on information regarding the Mortgage
Pool and Certificate structuring assumptions consistent with the
Prospectus, circulate such revised Computational Materials and ABS Term
Sheets to all recipients of the preliminary versions thereof, and include
such revised Computational Materials and ABS Term Sheets (marked, "as
revised") in the materials delivered to the Company pursuant to paragraph
(b)(iv) above.
(vi) The Company shall not be obligated to file any Computational
Materials or ABS Term Sheets that have been determined to contain any
material error or omission, provided that the Company will file
Computational Materials or ABS Term Sheets that contain a material error
or, when read together with the Prospectus, a material omission, if clearly
marked (A) "superseded by materials dated [specify date]" and accompanied
by corrected Computational Materials or ABS Term Sheets that are marked
"material previously dated [specify date], as corrected", or (B) if the
material error or omission is to be corrected in the Prospectus,
"superseded by materials contained in the Prospectus." If, within the
period during which the Prospectus relating to the Certificates is required
to be delivered under the 1933 Act and the rules and regulations of the
Commission thereunder, any Computational Materials or ABS Term Sheets in
respect of the Certificates provided to prospective investors by such
Underwriter are determined, in the reasonable judgment of the Company or
such Underwriter, to contain a material error or, when read together with
the Prospectus, a material omission, then (unless the material error or
omission was corrected in the Prospectus) such Underwriter shall prepare,
or cause the preparation of, a corrected version of such Computational
Materials or ABS Term Sheets, shall circulate such corrected Computational
Materials or ABS Term Sheets to all recipients of the prior versions
thereof, and shall deliver copies of such corrected Computational Materials
or ABS Term Sheets (marked, "as corrected") to the Company for filing with
the Commission in a subsequent Current Report on Form 8-K submission
(subject to the Company's obtaining an accountant's comfort letter in
respect of such corrected Computational Materials and ABS Term Sheets,
which shall be at the expense of such Underwriter).
(vii) Such Underwriter has not (and, as of the Closing Date, will not
have) provided any prospective investors with any information in written or
electronic form in connection with the offering of the Certificates except
for (A) the Prospectus and any amendments or supplements thereto, (B) any
Preliminary Prospectus and (C) such Computational Materials and/or ABS Term
Sheets as either have been provided to the Company pursuant to or as
contemplated by paragraph (b)(iv) above or are not required to be filed
with the Commission in accordance with the No-Action Letters.
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(viii) In the event of any delay in the delivery by any Underwriter to
the Company of all Computational Materials and ABS Term Sheets in respect
of the Certificates required to be delivered in accordance with or as
contemplated by paragraph (b)(iv) above, the Company 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 Company to comply with its
agreement set forth in Section 5(h) hereof to file the Computational
Materials and ABS Term Sheets by the time specified therein.
(ix) Computational Materials and ABS Term Sheets distributed by such
Underwriter through electronic means have been so distributed in accordance
with SEC Release No. 33-7233.
(c) Each Underwriter represents and agrees that: (i) it has not sold or
offered the Certificates in the United Kingdom, and it has not delivered or
communicated the Prospectus or any other invitation or inducement to buy or
participate in the Certificates in the United Kingdom, except to persons who (A)
have professional experience of participating in unregulated collective
investment schemes and of matters relating to investments falling within both
Article 14(5) of the Financial Services Markets ▇▇▇ ▇▇▇▇ (Promotion of
Collective Investment Schemes) (Exemptions) Order 2001 (the "CIS Order") and
Article 19(5) of the Financial Services and Markets Act (Financial Promotion)
Order 2001 (the "FP order") or (B) fall within Article 22(2)(a) through (d)
("high net worth companies, unincorporated associations, etc.") of the CIS Order
and Article 49(2)(a) though (d) of the FP Order; and (ii) it has complied and
will comply with all applicable provisions of the Financial Services and Markets
▇▇▇ ▇▇▇▇ with respect to anything done by it in relation to the Certificates in,
from or otherwise involving the United Kingdom.
5. ADDITIONAL COVENANTS OF THE COMPANY. The Company covenants with the
respective Underwriters that:
(a) During such period following the date of this Agreement in which any
Prospectus is required to be delivered under the 1933 Act (the "Prospectus
Delivery Period"), the Company will deliver to each Underwriter such number of
copies of each Prospectus as such Underwriter may reasonably request.
(b) During the Prospectus Delivery Period, the Company will file promptly
with the Commission any amendment or supplement to the Registration Statement or
any Prospectus relating to or covering the Certificates that may, in the
judgment of the Company or the Lead Underwriters, be required by the 1933 Act
and the rules and regulations of the Commission thereunder or requested by the
Commission and approved by the Lead Underwriters.
(c) Prior to filing with the Commission during the Prospectus Delivery
Period any amendment or supplement to the Registration Statement relating to or
covering the Certificates (other than an amendment by reason of Rule 429 under
the ▇▇▇▇ ▇▇▇) or any amendment or supplement to the Prospectus, the Company will
furnish a copy thereof to the Underwriters, and the Company will not file any
such amendment or supplement to which the Lead Underwriters shall reasonably
object.
(d) The Company will advise the Underwriters promptly (i) when, during
the Prospectus Delivery Period, any post-effective amendment to the Registration
Statement relating to or covering the Certificates (other than any amendment by
reason of Rule 429 under the ▇▇▇▇ ▇▇▇) becomes effective, (ii) of any request or
proposed request by the Commission for any amendment or supplement to the
Registration
-9-
Statement (insofar as the amendment or supplement relates to or covers the
Certificates), for any amendment or supplement to the Prospectus or for any
additional information with respect to the Certificates, (iii) of the issuance
by the Commission, during the Prospectus Delivery Period, of any stop order
suspending the effectiveness of the Registration Statement or the initiation or
threat of any such stop order proceeding, (iv) of receipt by the Company of any
notification with respect to the suspension of the qualification of the
Certificates for sale in any jurisdiction or the initiation or threat of any
proceeding for that purpose and (v) of the happening, during the Prospectus
Delivery Period, of any event that makes untrue any statement of a material fact
made in the Registration Statement or any Prospectus or that requires the making
of a change in or addition to the Registration Statement or any Prospectus in
order to make any material statement therein not misleading.
(e) If, during the Prospectus Delivery Period, the Commission issues an
order suspending the effectiveness of the Registration Statement, the Company
will make every reasonable effort to obtain the lifting of that order at the
earliest possible time.
(f) The Company will endeavor to qualify the Certificates for offer and
sale under the securities laws of such jurisdictions as the Lead Underwriters
may reasonably request, provided, however, that this Section 5(f) shall not
obligate the Company to file any general consent to service of process or to
qualify to do business in any jurisdiction or as a dealer in securities in any
jurisdiction in which it is not so qualified.
(g) The costs and expenses associated with the transactions contemplated
by this Agreement shall be payable by the Mortgage Loan Sellers as and to the
extent provided in the respective Mortgage Loan Purchase Agreements. CSFB and
Salomon shall each be responsible for the costs and expenses (including, but not
limited to, the fees and expenses of any counsel retained thereby) actually
incurred by such Underwriter in connection with the transactions contemplated by
this Agreement.
(h) The Company will file any documents and any amendments thereof as may
be required to be filed by it pursuant to the 1933 Act and the Securities
Exchange Act of 1934, as amended (the "1934 Act"), and the rules and regulations
of the Commission under the 1933 Act and the 1934 Act, including, but not
limited to, the filing with the Commission pursuant to a Current Report on Form
8-K, subject to Section 4 hereof, of all Computational Materials and ABS Term
Sheets in respect of the Certificates furnished by any Underwriter and
identified by it as such. Subject to compliance by each Underwriter with Section
4(b)(iv) hereof, the Company will file all such Computational Materials and ABS
Term Sheets within the time period allotted for such filing pursuant to the
No-Action Letters. Subject to compliance by each Underwriter with Section
4(b)(iv) hereof, the Company represents and warrants that, to the extent
required by the No-Action Letters, the Company has timely filed with the
Commission any Collateral Term Sheets previously delivered to it as contemplated
by Section 4(b)(iv) hereof.
6. CONDITIONS TO THE OBLIGATIONS OF THE UNDERWRITERS. The obligations of
the several Underwriters hereunder to purchase the Certificates shall be subject
to the accuracy in all material respects of the representations and warranties
on the part of the Company contained herein as of the date hereof, as of the
date of the effectiveness of any amendment to the Registration Statement filed
prior to the Closing Date, as of the date the Prospectus Supplement or any
supplement thereto is filed with the Commission prior to the Closing Date and as
of the Closing Date, to the accuracy of the statements of the Company made in
any certificates delivered pursuant to the provisions hereof, to the performance
in all material respects by the
-10-
Company of its obligations hereunder and to satisfaction, as of the Closing
Date, of the following additional conditions:
(a) No stop order suspending the effectiveness of the Registration
Statement, as amended from time to time, shall have been issued and not
withdrawn and no proceedings for that purpose shall have been instituted or, to
the Company's knowledge, threatened; and the Prospectus Supplement shall have
been filed or transmitted for filing with the Commission in accordance with Rule
424 under the ▇▇▇▇ ▇▇▇.
(b) The Company shall have delivered to the Underwriters a certificate of
the Company, signed by an authorized officer of the Company and dated the
Closing Date, to the effect that: (i) the representations and warranties of the
Company in this Agreement are true and correct in all material respects at and
as of the Closing Date with the same effect as if made on the Closing Date; and
(ii) the Company has in all material respects complied with all the agreements
and satisfied all the conditions on its part that are required hereby to be
performed or satisfied at or prior to the Closing Date.
(c) The Underwriters shall have received with respect to the Company a
good standing certificate from the Secretary of State of the State of Delaware,
dated not earlier than 10 days prior to the Closing Date.
(d) The Underwriters shall have received from the Secretary or an
assistant secretary of the Company, in his individual capacity, a certificate,
dated the Closing Date, to the effect that: (i) each individual who, as an
officer or representative of the Company, signed this Agreement, the Pooling and
Servicing Agreement, either of the Mortgage Loan Purchase Agreements or any
other document or certificate delivered on or before the Closing Date in
connection with the transactions contemplated herein, in the Pooling and
Servicing Agreement or in either of the Mortgage Loan Purchase Agreements, was
at the respective times of such signing and delivery, and is as of the Closing
Date, duly elected or appointed, qualified and acting as such officer or
representative, and the signatures of such persons appearing on such documents
and certificates are their genuine signatures; and (ii) no event (including,
without limitation, any act or omission on the part of the Company) has occurred
since the date of the good standing certificate referred to in paragraph (c)
above which has affected the good standing of the Company under the laws of the
State of Delaware. Such certificate shall be accompanied by true and complete
copies (certified as such by the Secretary or an assistant secretary of the
Company) of (i) the certificate of incorporation and by-laws of the Company, as
in effect on the Closing Date, and (ii) the resolutions of the Company and any
required shareholder consent relating to the transactions contemplated in this
Agreement, the Pooling and Servicing Agreement and the Mortgage Loan Purchase
Agreements.
(e) The Underwriters shall have received from Sidley ▇▇▇▇▇▇ ▇▇▇▇▇ & ▇▇▇▇
LLP, special counsel for the Company, a favorable opinion, dated the Closing
Date, substantially in the form attached hereto as Exhibit A-1.
(f) The Underwriters shall have received copies of all legal opinion
letters delivered by Sidley ▇▇▇▇▇▇ ▇▇▇▇▇ & ▇▇▇▇ LLP, special counsel for the
Company, to the Rating Agencies in connection with the issuance of the
Certificates, accompanied in each case by a letter signed by Sidley ▇▇▇▇▇▇ ▇▇▇▇▇
& ▇▇▇▇ LLP stating that the Underwriters may rely on such opinion letter as if
it were addressed to them as of date thereof.
-11-
(g) The Underwriters shall have received from in-house counsel for the
Company, a favorable opinion, dated the Closing Date, substantially in the form
attached hereto as Exhibit A-2.
(h) The Underwriters shall have received from Sidley ▇▇▇▇▇▇ ▇▇▇▇▇ & ▇▇▇▇
LLP, special counsel for the Company, a letter, dated the Closing Date,
substantially in the form attached hereto as Exhibit A-3, regarding certain
information in the Registration Statement and the Prospectus.
(i) The Underwriters shall have received from Deloitte & Touche LLP,
certified public accountants, a letter dated the Closing Date and satisfactory
in form and substance to the Lead Underwriters and their counsel, to the
following effect:
(i) they have performed certain specified procedures as a result of
which they have determined that such information of an accounting,
financial or statistical nature set forth in the Prospectus Supplement, as
was agreed upon by the Underwriters, agrees with the data sheet or computer
tape prepared by or on behalf of the Mortgage Loan Sellers, unless
otherwise noted in such letter; and
(ii) they have compared the data contained in the data sheet or
computer tape referred to in the immediately preceding clause (i) to
information contained in an agreed upon sampling of the Mortgage Loan files
and in such other sources as shall be specified by them, and found such
data and information to be in agreement in all material respects, unless
otherwise noted in such letter.
(j) The Underwriters shall have received, with respect to each of the
Master Servicer, the Special Servicer, the Trustee and the Fiscal Agent, a
favorable opinion of counsel, dated the Closing Date, addressing: the valid
existence of such party under the laws of its jurisdiction of organization; the
due authorization, execution and delivery of the Pooling and Servicing Agreement
by such party; the enforceability of the Pooling and Servicing Agreement against
such party, subject to such limitations as are reasonably acceptable to the Lead
Underwriters and their counsel; and such other matters as the Lead Underwriters
and their counsel may reasonably request. Counsel rendering each such opinion
may express its reliance as to factual matters on representations and warranties
made by, and on certificates or other documents furnished by officers and/or
authorized representatives of, the parties to the Pooling and Servicing
Agreement and on certificates furnished by public officials and, further, may
assume the due authorization, execution and delivery of the instruments and
documents referred to therein by the parties thereto other than the party on
behalf of which such opinion is being rendered. Each such opinion need cover
only the laws of the State of New York, the laws of the jurisdiction of
organization for the party on behalf of which such opinion is being rendered and
the federal law of the United States.
(k) The Underwriters shall have been furnished with all documents,
certificates and opinions required to be delivered by UBSWREI, UBSPF and
UBS(USA) in connection with the sale by UBSWREI of the UBS Mortgage Loans to the
Company, pursuant to the UBS Mortgage Loan Purchase Agreement. The Underwriters
shall be entitled to rely on each such certificate executed and delivered by
UBSWREI, UBS(USA) or any of their respective officers and representatives, to
the same extent that the Company may so rely, and each such opinion addressed to
the Company shall also be addressed to the Underwriters.
-12-
(l) The Underwriters shall have been furnished with all documents,
certificates and opinions required to be delivered by Holdings in connection
with the sale by Holdings of its Mortgage Loans to the Company, pursuant to the
Holdings Mortgage Loan Purchase Agreement. The Underwriters shall be entitled to
rely on each such certificate executed and delivered by Holdings or any of its
officers and representatives, to the same extent that the Company may so rely,
and each such opinion addressed to the Company shall also be addressed to the
Underwriters.
(m) The Underwriters shall have been furnished with such other documents
and opinions as the Lead Underwriters may reasonably require, for the purpose of
enabling them to pass upon the issuance and sale of the Certificates as herein
contemplated and related proceedings, or in order to evidence the accuracy of
any of the representations or warranties, or the fulfillment of any of the
conditions, herein contained.
(n) The Certificates shall have been assigned ratings no less than those
set forth on Schedule I and such ratings shall not have been qualified,
downgraded or withdrawn.
If any of the conditions specified in this Section 6 shall not have been
fulfilled in all material respects when and as provided in this Agreement, if
the Company is in material breach of any covenants or agreements contained
herein or if any of the opinions and certificates referred to above or elsewhere
in this Agreement shall not be in all material respects reasonably satisfactory
in form and substance to the Lead Underwriters and their counsel, this Agreement
and all obligations of the Underwriters hereunder may be cancelled at, or at any
time prior to, the Closing Date by the Lead Underwriters. Notice of such
cancellation shall be given to the Company in writing, or by telephone or
telegraph confirmed in writing.
7. REIMBURSEMENT OF UNDERWRITERS' EXPENSES. If the sale of the
Certificates provided for herein is not consummated because any condition to the
obligations of the Underwriters set forth in Section 6 hereof is not satisfied
or because of any refusal, inability or failure on the part of the Company to
perform in all material respects any agreement herein or comply in all material
respects with any provision hereof, other than by reason of a default by the
Underwriters or a refusal, inability or failure on the part of UBSWREI or any of
its affiliates to perform in all material respects any agreement in, or comply
in all material respects with any provision of, the UBS Mortgage Loan Purchase
Agreement, the Company will reimburse the Underwriters upon demand, for all
out-of-pocket expenses (including reasonable fees and disbursements of counsel)
that shall have been incurred by any of them in connection with the proposed
purchase and sale of the Certificates. If the sale of the Certificates provided
for herein is not consummated because of a refusal, inability or failure on the
part of UBSWREI or any of its affiliates to perform in all material respects any
agreement in, or comply in all material respects with any provision of, the UBS
Mortgage Loan Purchase Agreement, UBSWREI will reimburse the Underwriters upon
demand, for all out-of-pocket expenses (including reasonable fees and
disbursements of counsel) that shall have been incurred by any of them in
connection with the proposed purchase and sale of the Certificates.
8. INDEMNIFICATION.
(a) The Company agrees to indemnify and hold harmless the Underwriters
and each person, if any, who controls any Underwriter within the meaning of
Section 15 of the 1933 Act or Section 20 of the 1934 Act, against:
-13-
(i) any and all losses, liabilities, claims, damages, costs and
expenses whatsoever, as incurred, arising out of or based upon any untrue
statement or alleged untrue statement of a material fact contained in the
Registration Statement (or any amendment thereto), or the omission or
alleged omission therefrom of a material fact required to be stated therein
or necessary to make the statements therein not misleading, or arising out
of or based upon any untrue statement or alleged untrue statement of a
material fact contained in the Prospectus or any Preliminary Prospectus (or
any amendment or supplement thereto) or the omission or alleged omission
therefrom of a material fact necessary in order to make the statements
therein, in the light of the circumstances under which they were made, not
misleading;
(ii) any and all losses, liabilities, claims, damages, costs and
expenses whatsoever, as incurred, to the extent of the aggregate amount
paid in settlement of any litigation, or any investigation or proceeding by
any governmental agency or body, commenced or threatened, or any claim
whatsoever based upon any such untrue statement or omission or any such
alleged untrue statement or omission, contemplated by clause (i) above, if
such settlement is effected with the written consent of the Company or as
otherwise provided in Section 8(c) hereof; and
(iii) any and all expenses whatsoever, as incurred (including, without
limitation, the fees and disbursements of counsel chosen by the Lead
Underwriters), reasonably incurred in investigating, preparing for or
defending against any litigation, or any investigation or proceeding by any
governmental agency or body, commenced or threatened, or any claim
whatsoever based upon any such untrue statement or omission, or any such
alleged untrue statement or omission, contemplated by clause (i) above, to
the extent that any such expense is not paid under clause (i) or (ii)
above;
provided, however, that the Company shall not be liable under the indemnity
agreement in this subsection (a) for any such loss, liability, claim, damage,
cost or expense that arises out of or is based upon any untrue statement or
omission or alleged untrue statement or omission contemplated by clause (i)
above that was made in reliance upon and in conformity with written or
electronic information (as specified in Section 8(b) below) furnished to the
Company by any Underwriter expressly for use in the Registration Statement (or
any amendment thereto) or in the Prospectus or any Preliminary Prospectus (or
any amendment or supplement thereto); and provided, further, that the Company
shall not be liable under the indemnity agreement in this subsection (a) for any
such loss, liability, claim, damage, cost or expense that arises out of or is
based upon any untrue statement or omission or alleged untrue statement or
omission contemplated by clause (i) above that was made in any Computational
Materials or ABS Term Sheets (or any amendments or supplements thereto) in
respect of the Certificates delivered to prospective investors by one or more of
the Underwriters and furnished to the Company by any of the Underwriters
pursuant to Section 4(b)(iv) hereof and made a part of the Registration
Statement or incorporated by reference in the Prospectus or any Preliminary
Prospectus; and provided, further, that the Company shall not be liable under
the indemnity agreement in this subsection (a) for any such loss, liability,
claim, damage, cost or expense that arises out of or is based upon (A) any
untrue statement or omission or alleged untrue statement or omission
contemplated by clause (i) above that was made in the Prospectus or any
Preliminary Prospectus (or any amendment or supplement thereto) in reliance upon
and in conformity with (1) the Master Tape (it being acknowledged that the
Master Tape was used to prepare the Prospectus Supplement and any Preliminary
Prospectus Supplement, including, without limitation, Annex ▇-▇, ▇▇▇▇▇ ▇-▇,
▇▇▇▇▇ ▇-▇, ▇▇▇▇▇ A-4 and Annex B thereto and the accompanying diskette), (2) the
representations and warranties of either Mortgage Loan Seller set forth in or
-14-
made pursuant to the related Mortgage Loan Purchase Agreement or (3) any other
information concerning the Mortgage Loan Seller Matters furnished to the Company
or the Underwriters by either Mortgage Loan Seller, or (B) any untrue statement
or omission or alleged untrue statement or omission contemplated by clause (i)
above that was made in the Prospectus Supplement or any Preliminary Prospectus
Supplement (or any amendment or supplement thereto) concerning the Mortgage Loan
Seller Matters under the headings "Summary of Prospectus Supplement--The
Underlying Mortgage Loans and the Mortgaged Real Properties", "Risk
Factors--Risks Related to the Underlying Mortgage Loans" and "Description of the
Mortgage Pool" therein or on Annex ▇-▇, ▇▇▇▇▇ ▇-▇, ▇▇▇▇▇ ▇-▇, Annex A-4 and/or
Annex B thereto or on the accompanying diskette, except to the extent that such
untrue statement or omission or alleged untrue statement or omission
contemplated by clause (i) above under such headings, on such annexes or on such
diskette was made as a result of an error in the manipulation of, or any
calculations based upon, or any aggregation of, such information regarding the
Mortgage Loan Seller Matters, or (C) any untrue statement or omission or alleged
untrue statement or omission contemplated by clause (i) above that was made in
the Special Valley Fair Mall Financial Information (insofar as such financial
information was made a part of the Registration Statement or incorporated by
reference in the Prospectus or any Preliminary Prospectus (or any amendment or
supplement thereto)); and, provided, further, that the Company shall not be
liable to any Underwriter or any person controlling such Underwriter under the
indemnity agreement in this subsection (a) for any such loss, liability, claim,
damage, cost or expense that arises out of or is based upon any untrue statement
or omission contemplated by clause (i) above that was made in any Preliminary
Prospectus to the extent that such losses, liabilities, claims, damages, costs
or expenses result from the fact that such Underwriter sold Certificates to a
person as to whom it shall be established that there was not sent or given, at
or prior to the confirmation of such sale, a copy of the Prospectus (excluding
documents incorporated therein by reference), such untrue statement or omission
had been corrected in the Prospectus and a sufficient number of copies of the
Prospectus had been provided by the Company to such Underwriter prior to the
confirmation of such sale.
(b) The respective Underwriters, severally and not jointly, each agrees
to indemnify and hold harmless the Company, its directors, each of its officers
who signed the Registration Statement, and each person, if any, who controls the
Company within the meaning of Section 15 of the 1933 Act or Section 20 of the
1934 Act against any and all losses, liabilities, claims, damages, costs and
expenses described in clauses (i), (ii) and (iii) of Section 8(a) hereof, as
incurred, but only with respect to untrue statements or omissions, or alleged
untrue statements or omissions, made in the Prospectus or any Preliminary
Prospectus (or any amendment thereof or supplement thereto) in reliance upon and
in conformity with written or electronic information relating to such
Underwriter furnished to the Company by such Underwriter, or by either of the
Lead Underwriters on its behalf, expressly for use in the Prospectus or such
Preliminary Prospectus (or any amendment or supplement thereto), or made in any
Computational Materials or ABS Term Sheets in respect of the Certificates that
were prepared by such Underwriter and distributed by it or any other party to
prospective investors; provided, however, that such Underwriter shall not be
liable under the indemnity agreement in this subsection (b) for any such loss,
liability, claim, damage, cost or expense that arises out of or is based upon
any untrue statement or omission in any such Computational Materials or ABS Term
Sheets to the extent that such loss, liability, claim, damage or expense is
covered by the indemnity agreement included in Section 1(a) of either
Indemnification Agreement, unless it shall be established that such Underwriter
was notified electronically or in writing of such untrue statement or omission
prior to the time of confirmation of sale to the person that purchased the
Certificates that are the subject of such loss, liability, claim, damage or
expense, or action in respect thereof, and such Underwriter failed to deliver to
such person corrected Computational Materials or ABS Term Sheets (or, if the
superseding or correcting
-15-
information is contained in the Prospectus, failed to deliver to such person
such Prospectus) prior to confirmation of such sale to such person. It is hereby
acknowledged that (i) the statements set forth in the first, fourth and fifth
sentences of the penultimate paragraph, and the entire last paragraph, above the
emboldened names of the Underwriters on the cover of the Prospectus Supplement
and any Preliminary Prospectus Supplement, (ii) the statements under the caption
"Summary of Prospectus Supplement--Relevant Parties--Underwriters" in the
Prospectus Supplement or any Preliminary Prospectus Supplement, and (iii) the
statements in the table and in the first sentence of each of the third and fifth
paragraphs, and the entire sixth paragraph, under the caption "Method of
Distribution" in the Prospectus Supplement or any Preliminary Prospectus
Supplement, constitute the only written or electronic information furnished to
the Company by the Underwriters, including, without limitation, by either of the
Lead Underwriters on behalf of any other Underwriter, expressly for use in the
Prospectus or any Preliminary Prospectus.
(c) Each indemnified party shall give notice as promptly as reasonably
practicable to each indemnifying party of any action commenced against it in
respect of which indemnity may be sought hereunder, but failure to so notify an
indemnifying party shall not relieve such indemnifying party from any liability
which it may have otherwise than on account of the indemnity agreement in
subsection (a) or (b), as applicable, of this Section 8. An indemnifying party
may participate at its own expense in the defense of any such action and, to the
extent that it may elect by written notice delivered to the indemnified party
promptly after receiving the aforesaid notice from the indemnified party, to
assume the defense thereof, with counsel satisfactory to such indemnified party.
In any such proceeding, any indemnified party shall have the right to retain its
own counsel, but the fees and expenses of such counsel shall be at the expense
of such indemnified party unless (i) the indemnifying party and the indemnified
party shall have agreed to the retention of such counsel, or (ii) the
indemnifying party shall not have assumed the defense of such action, with
counsel satisfactory to the indemnified party, within a reasonable period
following the indemnifying party's receiving notice of such action, or (iii) the
named parties to any such proceeding (including any impleaded parties) include
both the indemnifying party and the indemnified party and representation of both
parties by the same counsel would be inappropriate due to actual or potential
differing interests between them. In no event shall the indemnifying party or
parties be liable for fees and expenses of more than one counsel (in addition to
any local counsel) separate from its or their own counsel to all indemnified
parties in connection with any one action or separate but similar or related
actions in the same jurisdiction arising out of the same general allegations or
circumstances.
Notwithstanding anything herein to the contrary, an indemnifying party
shall not be liable under subsection (a) or (b) of this Section 8 for any
settlement or compromise or consent to the entry of any judgment with respect to
any litigation, or any investigation or proceeding by any governmental agency or
body, commenced or threatened, or any claim whatsoever in respect of which
indemnification could be sought under such subsection (a) or (b), as the case
may be, of this Section 8, effected without its written consent, unless (i) at
any time an indemnified party shall have requested such indemnifying party to
reimburse the indemnified party for fees and expenses of counsel for which the
indemnifying party is obligated under this Section 8, (ii) such settlement is
entered into more than 30 days after receipt by such indemnifying party of the
aforesaid request and (iii) such indemnifying party shall not have reimbursed
the indemnified party in accordance with such request prior to the date of such
settlement.
No indemnifying party shall, without the prior written consent of the
indemnified parties, settle or compromise or consent to the entry of any
judgment with respect to any litigation, or any investigation or proceeding by
any governmental agency or body, commenced or threatened, or any claim
-16-
whatsoever in respect of which indemnification could be sought under subsection
(a) or (b), as applicable, of this Section 8 (whether or not the indemnified
parties are actual or potential parties thereto), unless such settlement,
compromise or consent (i) includes an unconditional release of each indemnified
party from all liability arising out of such litigation, investigation,
proceeding or claim and (ii) does not include a statement as to or an admission
of fault, culpability or a failure to act by or on behalf of any indemnified
party.
(d) The amount paid or payable by an indemnified party as a result of the
losses, liabilities, claims, damages, costs or expenses referred to in this
Section 8 shall be deemed to include any legal fees and disbursements or other
expenses reasonably incurred by such indemnified party in connection with
investigating or defending any such claim except where the indemnified party is
required to bear such expenses, which expenses the indemnifying party shall pay
as and when incurred, at the request of the indemnified party, to the extent
that it is reasonable to believe that the indemnifying party will be ultimately
obligated to pay such expenses. In the event that any expenses so paid by the
indemnifying party are subsequently determined to not be required to be borne by
the indemnifying party hereunder, the party which received such payment shall
promptly refund the amount so paid to the party which made such payment.
(e) The remedies provided for in this Section 8 are not exclusive and
shall not limit any rights or remedies that may otherwise be available to any
indemnified party at law or in equity.
(f) The indemnity agreements contained in this Section 8 shall remain
operative and in full force and effect regardless of (i) any termination of this
Agreement, (ii) any investigation made by the Company, the Underwriters, any of
their respective directors or officers, or any person controlling the Company or
any of the Underwriters, and (iii) acceptance of and payment for any of the
Certificates.
9. CONTRIBUTION.
(a) In order to provide for just and equitable contribution in
circumstances in which the indemnity agreement provided for in Section 8(a) or
Section 8(b) hereof is for any reason held to be unenforceable by the
indemnified parties although applicable in accordance with its terms, the
Company, on the one hand, and the Underwriters, on the other hand, shall
contribute to the aggregate losses, liabilities, claims, damages, costs and
expenses of the nature contemplated by said indemnity agreement incurred by the
Company, on the one hand, or the Underwriters, on the other hand, as incurred,
(i) in such proportions as are appropriate to reflect the relative benefits
received by the Company, on the one hand, and the Underwriters, on the other
hand, from the transactions contemplated by this Agreement, or (ii) if the
allocation provided by clause (i) above is not permitted by applicable law, in
such proportion as is appropriate to reflect not only the relative benefits
referred to in clause (i) above but also the relative fault of the Company, on
the one hand, and the Underwriters, on the other hand, in connection with the
statements or omissions which resulted in such losses, liabilities, claims,
damages, costs and/or expenses, as well as any other relevant equitable
considerations; provided, however, that in no case shall any Underwriter be
responsible under this Section 9(a) for any amount in excess of the fees and/or
underwriting discounts received by such Underwriter in connection with the
underwriting of the Certificates, less any amount previously paid by such
Underwriter in respect of the subject losses, liabilities, claims, damages,
costs and/or expenses. For purposes of the foregoing, the benefits received by
the Company in connection with the transactions contemplated by this Agreement
shall be deemed to be equal to the total gross proceeds from the sale of the
Certificates (before deducting expenses, but excluding fees paid to the
Underwriters) received by the Company, and the benefits received by each
Underwriter in connection with the transactions contemplated by this Agreement
shall be deemed to be equal to the fees and/or underwriting discounts received
by such
-17-
Underwriter in connection with the underwriting of the Certificates. The
relative fault of the Company, on the one hand, and the Underwriters, on the
other hand, shall be determined by reference to, among other things, whether the
untrue or alleged untrue statement of a material fact or the omission or alleged
omission to state a material fact relates to information supplied by the Company
or by the Underwriters, and the parties' relative intent, knowledge, access to
information and opportunity to correct or prevent such statement or omission.
The parties hereto agree that it would not be just and equitable if contribution
pursuant to this Section 9(a) were determined by per capita allocation or by any
other method of allocation that does not take account of the considerations
referred to in this Section 9(a).
(b) Notwithstanding the foregoing, no person guilty of fraudulent
misrepresentation (within the meaning of Section 11(f) of the ▇▇▇▇ ▇▇▇) shall be
entitled to contribution from any person who was not guilty of such fraudulent
misrepresentation. For purposes of this Section 9, each person, if any, who
controls any Underwriter within the meaning of Section 15 of the 1933 Act or
Section 20 of the 1934 Act shall have the same rights to contribution as such
Underwriter, and each director of the Company, each officer of the Company who
signed the Registration Statement, and each person, if any, who controls the
Company within the meaning of Section 15 of the 1933 Act or Section 20 of the
1934 Act shall have the same rights to contribution as the Company. The remedies
provided for in this Section 9 are not exclusive and shall not limit any rights
or remedies that may otherwise be available at law or in equity to any party
entitled to contribution under this Section 9.
(c) The contribution agreements contained in this Section 9 shall remain
operative and in full force and effect regardless of (i) any termination of this
Agreement, (ii) any investigation made by the Company, the Underwriters, any of
their respective directors or officers, or any person controlling the Company or
any of the Underwriters, and (iii) acceptance of and payment for any of the
Certificates.
10. REPRESENTATIONS, WARRANTIES AND AGREEMENTS TO SURVIVE DELIVERY. All
representations, warranties and agreements contained in this Agreement, or
contained in certificates of officers of the Company submitted pursuant hereto,
shall remain operative and in full force and effect, regardless of any
investigation made by or on behalf of any Underwriter, or by or on behalf of the
Company, or by or on behalf of any of the controlling persons and officers and
directors referred to in Sections 8 and 9 hereof, and shall survive delivery of
the Certificates to the Underwriters.
11. TERMINATION OF AGREEMENT; SURVIVAL.
(a) The Lead Underwriters may terminate the obligations of the
Underwriters under this Agreement, by notice to the Company, at any time at or
prior to the Closing Date (i) if there has been, since the date of this
Agreement or since the respective dates as of which information is given in the
Registration Statement and the Prospectus, any material adverse change in the
condition, financial or otherwise, or in the earnings, business affairs or
business prospects of the Company and its subsidiaries considered as one
enterprise, whether or not arising in the ordinary course of business, or (ii)
if there has occurred any outbreak of hostilities or escalation thereof or other
calamity or crisis the effect of which is such as to make it, in the reasonable
judgment of the Lead Underwriters, impracticable to market the Certificates or
to enforce contracts for the sale of the Certificates, or (iii) if trading
generally on the New York Stock Exchange has been suspended, or if a banking
moratorium has been declared by either federal or New York authorities.
(b) If this Agreement is terminated pursuant to this Section 11, such
termination shall be without liability of any party to any other party, except
that the provisions of Section 5(g) hereof regarding
-18-
the payment of costs and expenses and the provisions of Sections 8 and 9 hereof
shall survive the termination of this Agreement.
12. SUBSTITUTION OF UNDERWRITERS.
(a) If any Underwriter shall fail to take up and pay for the amount of
the Certificates agreed by such Underwriter to be purchased under this
Agreement, upon tender of such Certificates in accordance with the terms hereof,
and the amount of the Certificates not purchased does not aggregate more than
10% of the total amount of the Certificates set forth in Schedule II hereof
(based on aggregate purchase price), then the remaining Lead Underwriter (or, in
the case that either CSFB or Salomon is the withdrawing or defaulting
Underwriter, the Lead Underwriters) shall be obligated to take up and pay for
the Certificates that the withdrawing or defaulting Underwriter agreed but
failed to purchase (it being understood and agreed that if either CSFB or
Salomon is the withdrawing or defaulting Underwriter, then the Lead
Underwriters' obligations under this Section 12(a) shall be allocated between
them, on a pro rata basis, in accordance with the respective aggregate purchase
prices to be paid by the Lead Underwriters for the Certificates originally
allocated thereto on Schedule II).
(b) If any Underwriter shall fail to take up and pay for the amount of
the Certificates agreed by such Underwriter to be purchased under this Agreement
(such Underwriter being a "Defaulting Underwriter"), upon tender of such
Certificates in accordance with the terms hereof, and the amount of the
Certificates not purchased aggregates more than 10% of the total amount of the
Certificates set forth in Schedule II hereto (based on aggregate purchase
price), and arrangements satisfactory to the remaining Underwriters and the
Company for the purchase of such Certificates by other persons are not made
within 36 hours thereafter, this Agreement shall terminate. In the event of any
such termination, the Company shall not be under any liability to any
Underwriter (except to the extent provided in Section 5(g), Section 8 and
Section 9 hereof), nor shall any Underwriter (other than the Defaulting
Underwriter) be under any liability to the Company (except to the extent
provided in Sections 8 and 9 hereof). Nothing herein shall be deemed to relieve
any Defaulting Underwriter from any liability it may have to the Company or the
other Underwriters by reason of its failure to take up and pay for Certificates
as agreed by such Defaulting Underwriter.
13. NOTICES. Any notice by the Company to any Underwriter shall be
sufficient if given in writing or by telegraph addressed to the address for such
Underwriter set forth on Schedule II hereto (or, in the case of any Underwriter,
to such other address as such Underwriter shall designate in writing to the
Company in accordance with this Section 13) and any notice by any Underwriter to
the Company shall be sufficient if given in writing or by telegraph addressed to
the Company at ▇▇▇ ▇▇▇▇▇▇▇ ▇▇▇▇▇▇, ▇▇▇ ▇▇▇▇, ▇▇▇ ▇▇▇▇ ▇▇▇▇▇, Attention: ▇▇▇▇▇
▇▇▇▇▇▇▇ (or to such other address as the Company shall designate in writing to
the Underwriters in accordance with this Section 13).
14. BENEFICIARIES. This Agreement shall be binding upon the Underwriters,
the Company and their respective successors. This Agreement and the terms and
provisions hereof are for the sole benefit of only those persons, except that
the indemnity agreement of the Underwriters contained in Section 8 hereof and
the contribution agreement of the Underwriters contained in Section 9 hereof
shall each be deemed to be also for the benefit of directors of the Company,
officers of the Company who have signed the Registration Statement and any
person controlling the Company; and the indemnity agreement of the Company
contained in Section 8 hereof and the contribution agreement of the Company
contained in Section 9 hereof shall each be deemed to be also for the benefit of
any person controlling an Underwriter. Nothing in this Agreement is intended or
shall be construed to give any person, other than the persons referred to in
this Section 14, any
-19-
legal or equitable right, remedy or claim under or in respect of this Agreement
or any provision contained herein.
15. BUSINESS DAY. For purposes of this Agreement, "business day" means any
day on which the New York Stock Exchange is open for trading.
16. APPLICABLE LAW. This Agreement will be governed by and construed in
accordance with the laws of the State of New York, applicable to contracts
negotiated, made and to be performed entirely in said State.
17. COUNTERPARTS. This Agreement may be executed in one or more
counterparts, and, if executed in more than one counterpart, the executed
counterparts shall together constitute a single instrument.
18. WAIVERS, MODIFICATIONS AND AMENDMENTS. Neither this Agreement nor any
term hereof may be changed, waived, discharged or terminated except by a writing
signed by the party against whom enforcement of such change, waiver, discharge
or termination is sought.
-20-
If the foregoing is in accordance with your understanding of
our agreement, please sign and return to the undersigned a counterpart hereof,
whereupon this instrument, along with all counterparts, and your acceptance
shall represent a binding agreement between the Company, the Underwriters and
the Mortgage Loan Sellers signing this Agreement for purposes of Section 5(g)
and 7.
Very truly yours,
STRUCTURED ASSET SECURITIES CORPORATION
By: /s/ ▇▇▇▇▇▇▇▇ ▇▇▇▇▇▇
-------------------------------------
Name: ▇▇▇▇▇▇▇▇ ▇▇▇▇▇▇
Title: Senior Vice President
Confirmed and accepted as of the date first above written:
▇▇▇▇▇▇ BROTHERS INC. UBS WARBURG LLC
By: /s/ ▇▇▇▇▇▇▇ ▇▇▇▇▇ By: /s/ ▇▇▇▇▇▇ ▇▇▇▇▇▇▇▇▇
----------------------------- ----------------------------
Name: ▇▇▇▇▇▇▇ ▇▇▇▇▇ Name: ▇▇▇▇▇▇ ▇▇▇▇▇▇▇▇▇
Title: Title: Director
By: /s/ ▇▇▇▇ ▇▇▇▇▇
----------------------------
Name: ▇▇▇▇ ▇▇▇▇▇
Title: Director
CREDIT SUISSE FIRST BOSTON ▇▇▇▇▇▇▇ ▇▇▇▇▇ ▇▇▇▇▇▇ INC.
CORPORATION
By: /s/ ▇▇▇▇▇▇▇ ▇▇▇▇▇▇▇▇▇▇ By: /s/ ▇▇▇▇▇ ▇▇▇▇▇▇▇
------------------------------ ----------------------------
Name: ▇▇▇▇▇▇▇ ▇▇▇▇▇▇▇▇▇▇ Name: ▇▇▇▇▇ ▇▇▇▇▇▇▇
Title: Vice President Title: Managing Director
Confirmed and accepted as of the date first above written, solely for purposes
of Sections 5(g) and 7:
UBS WARBURG REAL ESTATE INVESTMENTS INC.
By: /s/ ▇▇▇▇▇▇ ▇▇▇▇▇▇▇▇▇
-----------------------------------
Name: ▇▇▇▇▇▇ ▇▇▇▇▇▇▇▇▇
Title: Director
By: /s/ ▇▇▇▇ ▇▇▇▇▇
-----------------------------------
Name: ▇▇▇▇ ▇▇▇▇▇
Title: Director
Confirmed and accepted as of the date first above written, solely for purposes
of Section 5(g):
▇▇▇▇▇▇ BROTHERS HOLDINGS INC.,
DOING BUSINESS AS ▇▇▇▇▇▇ CAPITAL,
A DIVISION OF ▇▇▇▇▇▇ BROTHERS HOLDINGS INC.
By: /s/ ▇▇▇▇▇ ▇. ▇▇▇▇▇▇▇
-----------------------------------
Name: ▇▇▇▇▇ ▇. ▇▇▇▇▇▇▇
Title: Authorized Signatory
SCHEDULE I
Underwriting Agreement, dated as of September 26, 2002.
Title and Description of the Certificates: LB-UBS Commercial Mortgage Trust 2002-C4, Commercial Mortgage
Pass-Through Certificates, Series 2002-C4, Class A-1, Class ▇-▇,
▇▇▇▇▇ ▇-▇, Class A-4, Class A-5, Class B, Class C, Class D, Class
E, Class F and Class G Certificates
Cut-off Date: September 11, 2002
Expected Closing Date: October 8, 2002
CERTIFICATES
------------------------------------------------------------------------------------------------------------------------------
CLASS A-1 CLASS A-2 CLASS A-3 CLASS A-4 CLASS A-5 CLASS B CLASS C
--------- --------- --------- --------- --------- ------- -------
------------------------------------------------------------------------------------------------------------------------------
Initial Aggregate
Principal Amount $75,000,000 $90,000,000 $150,000,000 $86,000,000 $850,504,000 $18,191,000 $20,009,000
------------------------------------------------------------------------------------------------------------------------------
Initial Pass-Through
Rate 3.268% 4.023% 4.071% 4.563% 4.853% 4.899% 4.938%
------------------------------------------------------------------------------------------------------------------------------
Rating(1) AAA/AAA AAA/AAA AAA/AAA AAA/AAA AAA/AAA AA+/AA+ AA/AA
------------------------------------------------------------------------------------------------------------------------------
Purchase Price(2) 100.49886% 100.49892% 99.80077% 100.49597% 100.49328% 100.49890% 100.49588%
------------------------------------------------------------------------------------------------------------------------------
-----------------------------------------------------------------------------
CLASS D CLASS E CLASS F CLASS G
------- ------- ------- -------
-----------------------------------------------------------------------------
Initial Aggregate
Principal Amount $20,010,000 $12,733,000 $16,372,000 $10,914,000
-----------------------------------------------------------------------------
Initial Pass-Through
Rate 4.987% 5.007% 5.036% 5.125%
-----------------------------------------------------------------------------
Rating(1) AA-/AA- A+/A+ A/A A-/A-
-----------------------------------------------------------------------------
Purchase Price(2) 100.49415% 100.49661% 100.49250% 100.49597%
-----------------------------------------------------------------------------
---------------
(1) By Standard & Poor's Ratings Services, a division of The ▇▇▇▇▇▇-▇▇▇▇
Companies, Inc. and Fitch, Inc., respectively.
(2) Expressed as a percentage of the initial aggregate stated principal amount
of each class of Certificates. There shall be added to the Purchase Price
for each class of Certificates accrued interest at the initial Pass-Through
Rate therefor on the initial aggregate principal amount thereof from the
Cut-off Date to but not including the Closing Date.
SCHEDULE II
PRINCIPAL AMOUNT
OF RELEVANT CLASS OF
UNDERWRITERS (AND ADDRESSES) CLASS CERTIFICATES TO BE PURCHASED
---------------------------- ----- ----------------------------
▇▇▇▇▇▇ Brothers Inc. A-1 $ 75,000,000
▇▇▇ ▇▇▇▇▇▇▇ ▇▇▇▇▇▇ A-2 $ 90,000,000
▇▇▇ ▇▇▇▇, ▇▇▇ ▇▇▇▇ ▇▇▇▇▇ A-3 $ 150,000,000
Attention: ▇▇▇▇▇ ▇▇▇▇▇▇▇ A-4 $ 86,000,000
A-5 $ 800,504,000
B $ 18,191,000
C $ 20,009,000
D $ 20,010,000
E $ 12,733,000
F $ 16,372,000
G $ 10,914,000
UBS Warburg LLC A-1 $ 0
1285 Avenue of the Americas, ▇▇▇▇ ▇▇▇▇▇ ▇-▇ $ ▇
▇▇▇ ▇▇▇▇, ▇▇▇ ▇▇▇▇ ▇▇▇▇▇ A-3 $ 0
Attention: ▇▇▇▇▇ ▇▇▇▇▇ A-4 $ 0
A-5 $ 0
B $ 0
C $ 0
D $ 0
E $ 0
F $ 0
G $ 0
Credit Suisse First Boston Corporation A-1 $ 0
▇▇ ▇▇▇▇▇▇▇ ▇▇▇▇▇▇ A-2 $ ▇
▇▇▇ ▇▇▇▇, ▇▇▇ ▇▇▇▇ ▇▇▇▇▇ A-3 $ 0
A-4 $ 0
A-5 $ 25,000,000
B $ 0
C $ 0
D $ 0
E $ 0
F $ 0
G $ 0
PRINCIPAL AMOUNT
OF RELEVANT CLASS OF
UNDERWRITERS (AND ADDRESSES) CLASS CERTIFICATES TO BE PURCHASED
---------------------------- ----- ----------------------------
▇▇▇▇▇▇▇ ▇▇▇▇▇ Barney Inc. A-1 $ 0
▇▇▇ ▇▇▇▇▇▇▇▇▇ ▇▇▇▇▇▇ A-2 $ ▇
▇▇▇ ▇▇▇▇, ▇▇▇ ▇▇▇▇ ▇▇▇▇▇ A-3 $ 0
A-4 $ 0
A-5 $ 25,000,000
B $ 0
C $ 0
D $ 0
E $ 0
F $ 0
G $ 0
EXHIBIT A-1
FORM OF OPINION OF SIDLEY ▇▇▇▇▇▇ ▇▇▇▇▇ & ▇▇▇▇ LLP,
SPECIAL COUNSEL FOR THE COMPANY
SIDLEY ▇▇▇▇▇▇ ▇▇▇▇▇ & ▇▇▇▇ LLP
CHICAGO ▇▇▇ ▇▇▇▇▇▇▇ ▇▇▇▇▇▇ ▇▇▇▇▇▇▇
▇▇▇ ▇▇▇▇, ▇▇▇ ▇▇▇▇ ▇▇▇▇▇
DALLAS TELEPHONE ▇▇▇ ▇▇▇ ▇▇▇▇ GENEVA
FACSIMILE 212 839 5599
LOS ANGELES ▇▇▇.▇▇▇▇▇▇.▇▇▇ HONG KONG
SAN FRANCISCO FOUNDED 1866 LONDON
WASHINGTON, D.C. SHANGHAI
SINGAPORE
TOKYO
October 8, 2002
Structured Asset Securities Corporation ▇▇▇▇▇▇▇ ▇▇▇▇▇ ▇▇▇▇▇▇ Inc.
▇▇▇ ▇▇▇▇▇▇▇ ▇▇▇▇▇▇ ▇▇▇ ▇▇▇▇▇▇▇▇▇ ▇▇▇▇▇▇
▇▇▇ ▇▇▇▇, ▇▇▇ ▇▇▇▇ ▇▇▇▇▇ ▇▇▇ ▇▇▇▇, ▇▇▇ ▇▇▇▇ ▇▇▇▇▇
▇▇▇▇▇▇ Brothers Inc. Standard & Poor's Ratings Services,
▇▇▇ ▇▇▇▇▇▇▇ ▇▇▇▇▇▇ a division of The ▇▇▇▇▇▇-▇▇▇▇ Companies, Inc.
▇▇▇ ▇▇▇▇, ▇▇▇ ▇▇▇▇ ▇▇▇▇▇ ▇▇ ▇▇▇▇▇ ▇▇▇▇▇▇
▇▇▇ ▇▇▇▇, ▇▇▇ ▇▇▇▇ ▇▇▇▇▇
UBS Warburg LLC Fitch, Inc.
1285 Avenue of the Americas ▇▇▇ ▇▇▇▇▇ ▇▇▇▇▇▇ ▇▇▇▇▇
▇▇▇ ▇▇▇▇, ▇▇▇ ▇▇▇▇ ▇▇▇▇▇ ▇▇▇ ▇▇▇▇, ▇▇▇ ▇▇▇▇ ▇▇▇▇▇
Credit Suisse First Boston Corporation LaSalle Bank National Association
▇▇ ▇▇▇▇▇▇▇ ▇▇▇▇▇▇ ▇▇▇ ▇▇▇▇▇ ▇▇▇▇▇▇▇ ▇▇▇▇▇▇
▇▇▇ ▇▇▇▇, ▇▇▇ ▇▇▇▇ ▇▇▇▇▇ ▇▇▇▇▇▇▇, ▇▇▇▇▇▇▇▇ ▇▇▇▇▇
Re: LB-UBS Commercial Mortgage Trust 2002-C4
Commercial Mortgage Pass-Through Certificates, Series 2002-C4
-------------------------------------------------------------
Ladies and Gentlemen:
We have acted as special counsel to Structured Asset Securities
Corporation (the "Depositor"), ▇▇▇▇▇▇ Brothers Inc. ("LBI") and ▇▇▇▇▇▇ Brothers
Holdings Inc., doing business as ▇▇▇▇▇▇ Capital, a division of ▇▇▇▇▇▇ Brothers
Holdings Inc. ("LBHI"), in connection with the following transactions
(collectively, the "Transactions"):
(i) the sale by LBHI, and the purchase by the Depositor, of
certain multifamily and commercial mortgage loans (the "LBHI Mortgage
Loans"), pursuant to that certain Mortgage Loan Purchase Agreement,
dated as of September 26, 2002 (the "LBHI Mortgage Loan Purchase
Agreement"), between LBHI as seller and the Depositor as purchaser;
(ii) the sale by UBS Warburg Real Estate Investments Inc.
("UBSWREI" and, together with LBHI, the "Mortgage Loan Sellers"), and
the purchase by the Depositor, of certain
SIDLEY ▇▇▇▇▇▇ ▇▇▇▇▇ & ▇▇▇▇ LLP NEW YORK
Structured Asset Securities Corporation
▇▇▇▇▇▇ Brothers Inc.
UBS Warburg LLC
Credit Suisse First Boston Corporation
▇▇▇▇▇▇▇ ▇▇▇▇▇ ▇▇▇▇▇▇ Inc.
Standard & Poor's Ratings Services
Fitch, Inc.
LaSalle Bank National Association
October 8, 2002
Page 2
other multifamily and commercial mortgage loans (the "UBSWREI Mortgage
Loans" and, together with the LBHI Mortgage Loans, the "Mortgage
Loans"), pursuant to that certain Mortgage Loan Purchase Agreement,
dated as of September 26, 2002 (the "UBSWREI Mortgage Loan Purchase
Agreement" and, together with the LBHI Mortgage Loan Purchase
Agreement, the "Mortgage Loan Purchase Agreements"), between UBSWREI as
seller, the Depositor as purchaser and UBS Principal Finance LLC as an
additional party;
(iii) the creation of a common law trust (the "Trust") and the
issuance of an aggregate $1,455,238,297 Certificate Principal Balance
of Commercial Mortgage Pass-Through Certificates, Series 2002-C4 (the
"Certificates"), consisting of multiple classes designated Class A-1,
Class A-2, Class A-3, Class ▇-▇, ▇▇▇▇▇ ▇-▇, Class X-CL, Class X-CP,
Class X-VF, Class B, Class C, Class D, Class E, Class F, Class G, Class
H, Class J, Class K, Class L, Class M, Class N, Class P, Class Q, Class
S, Class T, Class U, Class R-I, Class R-II, Class R-III, Class R-LR and
Class V, pursuant to that certain Pooling and Servicing Agreement,
dated as of September 11, 2002 (the "Pooling and Servicing Agreement"),
between the Depositor as depositor, Wachovia Bank, National Association
as master servicer, Lennar Partners, Inc. as special servicer, LaSalle
Bank National Association as trustee (the "Trustee") and ABN AMRO Bank
N.V. as fiscal agent;
(iv) the transfer of the Mortgage Loans by the Depositor to
the Trust, pursuant to the Pooling and Servicing Agreement, in exchange
for the issuance of the Certificates at the direction of the Depositor;
(v) the sale by the Depositor, and the purchase by LBI, UBS
Warburg LLC ("UBSW"), Credit Suisse First Boston Corporation ("CSFB")
and ▇▇▇▇▇▇▇ ▇▇▇▇▇ ▇▇▇▇▇▇ Inc. ("Salomon"; Salomon, collectively with
LBI, UBSW and CSFB in such capacity, the "Underwriters"), of the Class
▇-▇, ▇▇▇▇▇ ▇-▇, Class A-3, Class A-4, Class A-5, Class B, Class C,
Class D, Class E, Class F and Class G Certificates (collectively, the
"Publicly Offered Certificates"), pursuant to that certain Underwriting
Agreement, dated as of September 26, 2002 (the "Underwriting
Agreement"), between the Depositor and the Underwriters, and
acknowledged, as to certain sections, by UBSWREI and LBHI;
(vi) the sale by the Depositor, and the purchase by LBI and
UBSW (together in such capacity, the "Initial Purchasers"), of the
Class X-CL, Class X-CP, Class X-VF, Class H, Class J, Class K, Class L,
Class M, Class N, Class P, Class Q, Class S, Class T and Class U
Certificates (collectively, the "Privately Offered Certificates" and,
collectively with the Publicly Offered Certificates, the "Offered
Certificates"), together with the Class V Certificates, pursuant to
that certain Certificate Purchase Agreement, dated as of September 26,
2002 (the "Certificate Purchase Agreement"), between the Depositor and
the Initial Purchasers;
SIDLEY ▇▇▇▇▇▇ ▇▇▇▇▇ & ▇▇▇▇ LLP NEW YORK
Structured Asset Securities Corporation
▇▇▇▇▇▇ Brothers Inc.
UBS Warburg LLC
Credit Suisse First Boston Corporation
▇▇▇▇▇▇▇ ▇▇▇▇▇ ▇▇▇▇▇▇ Inc.
Standard & Poor's Ratings Services
Fitch, Inc.
LaSalle Bank National Association
October 8, 2002
Page 3
(vii) the negotiation and execution of that certain LBHI
Indemnification Agreement, dated as of September 26, 2002 (the "LBHI
Indemnification Agreement"), between LBHI, the Depositor and the
Underwriters/Initial Purchasers; and
(viii) the negotiation and execution of that certain UBS
Indemnification Agreement, dated as of September 26, 2002 (the "UBS
Indemnification Agreement" and, together with the LBHI Indemnification
Agreement, the "Indemnification Agreements"), between UBSWREI,
UBS(USA), Inc. ("UBS(USA)"), the Depositor and the Underwriters/Initial
Purchasers.
In the course of our acting as special counsel to the Depositor, LBI
and LBHI as described above, we prepared or reviewed the Pooling and Servicing
Agreement, the Underwriting Agreement, the Certificate Purchase Agreement, the
Mortgage Loan Purchase Agreements and the Indemnification Agreements
(collectively, the "Agreements"). Capitalized terms not defined herein have the
respective meanings set forth in the Pooling and Servicing Agreement and, to the
extent not defined therein, in the other Agreements.
In addition, with the knowledge and consent of the Depositor and the
Underwriters/Initial Purchasers, we have acted as special counsel to those
parties in connection with the preparation or review of the following documents
and all exhibits thereto (collectively with the Agreements, the "Relevant
Documents"):
(a) the Prospectus Supplement, dated September 26, 2002 (the
"Prospectus Supplement"), specifically relating to the Publicly Offered
Certificates and the Trust;
(b) the Prospectus, dated September 16, 2002, relating to
publicly offered mortgage-backed securities, including mortgage
pass-through certificates evidencing interests in trust funds
established by the Depositor (the "Basic Prospectus" and, together with
the Prospectus Supplement, the "Prospectus");
(c) the Offering Memorandum, dated September 26, 2002 (the
"Memorandum") specifically relating to the Privately Offered
Certificates and the Trust; and
(d) the registration statement on Form S-3 (No. 333-73338)
(the "Registration Statement") filed with the Securities and Exchange
Commission (the "Commission").
We have also reviewed and, without independent investigation, assumed
the accuracy of the opinions and legal conclusions set forth in that certain
opinion dated October 8, 2002, rendered by Cadwalader, ▇▇▇▇▇▇▇▇▇▇ & ▇▇▇▇ to
▇▇▇▇▇▇ ▇▇▇▇▇▇ ▇▇▇▇▇ & ▇▇▇▇ LLP and the addressees to this letter, regarding
certain tax consequences to the Trust Fund resulting from the
SIDLEY ▇▇▇▇▇▇ ▇▇▇▇▇ & ▇▇▇▇ LLP NEW YORK
Structured Asset Securities Corporation
▇▇▇▇▇▇ Brothers Inc.
UBS Warburg LLC
Credit Suisse First Boston Corporation
▇▇▇▇▇▇▇ ▇▇▇▇▇ ▇▇▇▇▇▇ Inc.
Standard & Poor's Ratings Services
Fitch, Inc.
LaSalle Bank National Association
October 8, 2002
Page 4
servicing and administration of the 1166 Avenue of the Americas Mortgage Loan
and any related REO Property in accordance with the 1166 Avenue of the Americas
Servicing Agreement.
For purposes of rendering the opinions set forth below, we have also
examined originals or copies, certified or otherwise identified to our
satisfaction, of such other documents and records as we have deemed relevant or
necessary as the basis for the opinions set forth below; we have obtained such
certificates from and made such inquiries of officers and representatives of the
parties to the Agreements and public officials as we have deemed relevant or
necessary as the basis for such opinions; and we have relied upon, and assumed
the accuracy of, such other documents and records, such certificates and the
statements made in response to such inquiries, with respect to the factual
matters upon which such opinions are based. We have also assumed (i) the
truthfulness and accuracy of each of the representations and warranties as to
factual matters contained in the Agreements, (ii) the legal capacity of natural
persons, (iii) the genuineness of all signatures, (iv) the authenticity of all
documents submitted to us as originals, (v) the conformity to authentic
originals of all documents submitted to us as certified, conformed or
photostatic copies, (vi) the due organization of each of the parties to the
Agreements and the valid existence of each such party in good standing under the
laws of its jurisdiction of organization, (vii) except as expressly addressed in
opinion paragraph 5 below, the power and authority of all parties to the
Agreements to enter into, perform under and consummate the transactions
contemplated by the Agreements, without any resulting conflict with or violation
of the organizational documents of any such party or with or of any law, rule,
regulation, order, writ or decree applicable to any such party or its assets,
and without any resulting default under or breach of any other agreement or
instrument by which any such party is bound or which is applicable to it or its
assets, (viii) the due authorization by all necessary action, and the due
execution and delivery, of the Agreements by all parties thereto, (ix) except as
expressly addressed in opinion paragraph 6 below, the constitution of each of
the Agreements as the legal, valid and binding obligation of each party thereto,
enforceable against such party in accordance with its terms, (x) the compliance
with the Agreements by all parties thereto and, in the case of the Pooling and
Servicing Agreement, by the registered holders and beneficial owners of the
Certificates, (xi) the conformity, to the requirements of the Pooling and
Servicing Agreement and the Mortgage Loan Purchase Agreements, of the Mortgage
Notes, the Mortgages and the other documents delivered to the Trustee by, on
behalf of or at the direction of the Depositor and the Mortgage Loan Sellers,
and (xii) the absence of any other agreement that supplements or otherwise
modifies the express terms of the Agreements.
Our opinions set forth below with respect to the enforceability of any
agreement or any particular right or obligation under any agreement are subject
to: (1) general principles of equity, including concepts of materiality,
reasonableness, good faith and fair dealing and the doctrine of estoppel; (2)
the possible unavailability of specific performance and injunctive relief,
regardless of whether considered in a proceeding in equity or at law; (3) the
effect of certain laws, rules, regulations and judicial and other decisions upon
the enforceability of (a) any provision that purports to waive (i) the
application of any federal, state or local statute, rule or regulation, (ii) the
application of any general principles of equity or
SIDLEY ▇▇▇▇▇▇ ▇▇▇▇▇ & ▇▇▇▇ LLP NEW YORK
Structured Asset Securities Corporation
▇▇▇▇▇▇ Brothers Inc.
UBS Warburg LLC
Credit Suisse First Boston Corporation
▇▇▇▇▇▇▇ ▇▇▇▇▇ ▇▇▇▇▇▇ Inc.
Standard & Poor's Ratings Services
Fitch, Inc.
LaSalle Bank National Association
October 8, 2002
Page 5
(iii) the obligation of diligence, (b) any provision that purports to grant any
remedies that would not otherwise be available at law, to restrict access to any
particular legal or equitable remedies, to make any rights or remedies
cumulative and enforceable in addition to any other right or remedy, to provide
that the election of any particular remedy does not preclude recourse to one or
more other remedies, to provide that the failure to exercise or the delay in
exercising rights or remedies will not operate as a waiver of such rights or
remedies, to impose penalties or forfeitures, or to provide for set-off in the
absence of mutuality between the parties, (c) any provision that purports to
release, exculpate or exempt a party from, or indemnify a party for, liability
for any act or omission on its part that constitutes negligence, recklessness or
willful or unlawful conduct, (d) any provision that purports to govern matters
of civil procedure, including any such provision that purports to establish
evidentiary standards, to waive objections to venue or forum, to confer subject
matter jurisdiction on any court that would not otherwise have such jurisdiction
or to waive any right to a jury trial, or (e) any provision that purports to
render unenforceable any modification, waiver or amendment that is not in
writing and executed by all relevant parties, to sever any provision of any
agreement, to appoint any person or entity as the attorney-in-fact of any other
person or entity or to provide that any agreement or any particular provision
thereof is to be governed by or construed in accordance with the laws of any
jurisdiction other than the State of New York; (4) bankruptcy, insolvency,
receivership, reorganization, liquidation, voidable preference, fraudulent
conveyance and transfer, moratorium and other similar laws affecting the rights
of creditors or secured parties generally; and (5) public policy considerations
underlying the securities laws, to the extent that such public policy
considerations limit the enforceability of any provision of any agreement that
purports or is construed to provide indemnification with respect to securities
law violations.
When used in this opinion, the term "knowledge" or words of similar
import mean the actual knowledge of facts or other information of the Sidley
▇▇▇▇▇▇ ▇▇▇▇▇ & ▇▇▇▇ LLP attorneys currently practicing law with this firm who
have been actively involved in the above-described representation of the
Depositor, LBHI and/or the Underwriters/Initial Purchasers. In that regard we
have conducted no special or independent investigation of factual matters in
connection with this opinion letter.
In rendering the opinions set forth below, we do not express any
opinion concerning the laws of any jurisdiction other than the laws of the State
of New York and, where expressly referred to below, the federal laws of the
United States of America (in each case without regard to conflicts of law
principles). In addition, we do not express any opinion with respect to the tax,
securities or "doing business" laws of any particular State, including the State
of New York, or with respect to any matter not expressly addressed below.
Based upon and subject to the foregoing, we are of the opinion that:
1. The Registration Statement has become effective under the
Securities Act of 1933, as amended (the "1933 Act").
SIDLEY ▇▇▇▇▇▇ ▇▇▇▇▇ & ▇▇▇▇ LLP NEW YORK
Structured Asset Securities Corporation
▇▇▇▇▇▇ Brothers Inc.
UBS Warburg LLC
Credit Suisse First Boston Corporation
▇▇▇▇▇▇▇ ▇▇▇▇▇ ▇▇▇▇▇▇ Inc.
Standard & Poor's Ratings Services
Fitch, Inc.
LaSalle Bank National Association
October 8, 2002
Page 6
2. To our knowledge, no stop order suspending the
effectiveness of the Registration Statement has been issued and not
withdrawn, and no proceedings for that purpose have been instituted or
threatened and not terminated.
3. The Registration Statement, the Basic Prospectus and the
Prospectus Supplement, as of their respective effective or issue dates
(other than the financial statements, schedules and other financial and
statistical information contained therein or omitted therefrom and
other than information incorporated therein by reference, as to which
we express no opinion), complied as to form in all material respects
with the applicable requirements of the 1933 Act and the rules and
regulations of the Commission thereunder.
4. To our knowledge, there are no material contracts,
indentures or other documents relating to the Publicly Offered
Certificates of a character required to be described or referred to in
the Registration Statement or the Prospectus Supplement or to be filed
as exhibits to the Registration Statement, other than those described
or referred to therein or filed or incorporated by reference as
exhibits thereto.
5. The execution, delivery and performance by the Depositor of
the Mortgage Loan Purchase Agreements, the Pooling and Servicing
Agreement, the Underwriting Agreement and the Certificate Purchase
Agreement do not conflict with, or result in a violation of, any
federal or State of New York statute, or any rule or regulation
promulgated thereunder or pursuant thereto, which statute, rule or
regulation is applicable to the Depositor (except for any such conflict
or violation as would not have a material adverse effect on the
performance by the Depositor of its obligations under those
Agreements).
6. The Mortgage Loan Purchase Agreements, the Pooling and
Servicing Agreement, the Underwriting Agreement and the Certificate
Purchase Agreement are each a valid, legal and binding agreement of the
Depositor, enforceable against the Depositor in accordance with its
terms.
7. The Offered Certificates, when duly and validly executed,
authenticated and delivered in accordance with the Pooling and
Servicing Agreement and paid for in accordance with the Underwriting
Agreement or the Certificate Purchase Agreement, as applicable, will be
duly and validly issued and outstanding and entitled to the benefits of
the Pooling and Servicing Agreement.
8. No consent, approval, authorization or order of any federal
or State of New York court, agency or other governmental body is
required for the consummation by the Depositor of the transactions
contemplated by the terms of the Mortgage Loan Purchase Agreements, the
Pooling and Servicing Agreement, the Underwriting Agreement and the
Certificate Purchase
SIDLEY ▇▇▇▇▇▇ ▇▇▇▇▇ & ▇▇▇▇ LLP NEW YORK
Structured Asset Securities Corporation
▇▇▇▇▇▇ Brothers Inc.
UBS Warburg LLC
Credit Suisse First Boston Corporation
▇▇▇▇▇▇▇ ▇▇▇▇▇ ▇▇▇▇▇▇ Inc.
Standard & Poor's Ratings Services
Fitch, Inc.
LaSalle Bank National Association
October 8, 2002
Page 7
Agreement, except (a) such as have been obtained and (b) such as may be
required under state securities laws or the "blue sky" laws of any
jurisdiction in connection with the purchase and the offer and sale of
Offered Certificates by the Underwriters/Initial Purchasers, as to
which we express no opinion.
9. The Pooling and Servicing Agreement is not required to be
qualified under the Trust Indenture Act of 1939, as amended.
10. The Trust is not required to be registered under the
Investment Company Act of 1940, as amended.
11. The statements set forth in the Prospectus Supplement
under the headings "Federal Income Tax Consequences", "ERISA
Considerations" and "Legal Investment", in the Basic Prospectus under
the headings "Federal Income Tax Consequences", "ERISA Considerations"
and "Legal Investment" and in the Memorandum under the headings
"Certain Federal Income Tax Consequences", "Certain ERISA
Considerations" and "Legal Investment", to the extent that they
describe certain matters of federal law or legal conclusions with
respect thereto, while not purporting to discuss all possible
consequences of an investment in the Offered Certificates to all
investors, provide an accurate summary of such matters and conclusions
set forth under such headings.
12. The statements set forth in the Prospectus Supplement
under the headings "Description of the Offered Certificates" and
"Servicing Under the Series 2002-C4 Pooling and Servicing Agreement",
in the Basic Prospectus under the headings "Description of the
Certificates" and "Description of the Governing Documents" and in the
Memorandum under the headings "Summary of Offering
Memorandum--Description of the Privately Offered Certificates" and
"Transfer and Exchange; Restrictions" insofar as such statements
purport to summarize certain material provisions of the Offered
Certificates and the Pooling and Servicing Agreement, are accurate in
all material respects.
13. As described in the Prospectus and Memorandum, (a) each
Loan REMIC will qualify as a REMIC within the meaning of the REMIC
Provisions, and the related Loan REMIC Regular Interest will be the
"regular interest" and the Class R-LR Certificates will evidence the
sole class of "residual interests" in each Loan REMIC, (b) REMIC I will
qualify as a REMIC within the meaning of the REMIC Provisions, and the
REMIC I Regular Interests will be "regular interests" and the Class R-I
Certificates will evidence the sole class of "residual interests" in
REMIC I, (c) REMIC II will qualify as a REMIC within the meaning of the
REMIC Provisions, and the REMIC II Regular Interests will be "regular
interests" and the Class R-II Certificates will evidence the sole class
of "residual interests" in REMIC II, and (d) REMIC III will qualify as
a REMIC within the meaning of the REMIC Provisions, and the Regular
Interest Certificates will
SIDLEY ▇▇▇▇▇▇ ▇▇▇▇▇ & ▇▇▇▇ LLP NEW YORK
Structured Asset Securities Corporation
▇▇▇▇▇▇ Brothers Inc.
UBS Warburg LLC
Credit Suisse First Boston Corporation
▇▇▇▇▇▇▇ ▇▇▇▇▇ ▇▇▇▇▇▇ Inc.
Standard & Poor's Ratings Services
Fitch, Inc.
LaSalle Bank National Association
October 8, 2002
Page 8
evidence "regular interests" and the Class R-III Certificates will
evidence the sole class of "residual interests" in REMIC III.
14. The portion of the Trust Fund consisting of the Grantor
Trust Assets will be classified as a grantor trust under subpart E,
part I of subchapter J of the Internal Revenue Code of 1986.
15. Assuming the accuracy of the deemed representations set
forth under the heading "Notice to Investors" in the Memorandum on the
part of investors that purchase Privately Offered Certificates from LBI
and UBSW, the offer and sale of the Privately Offered Certificates by
the Depositor to LBI and UBSW, and by LBI and UBSW to investors that
purchase from them, in the manner contemplated by the Memorandum, the
Certificate Purchase Agreement and the Pooling and Servicing Agreement,
are transactions that do not require registration under the Securities
Act of 1933, as amended.
The opinions expressed herein are being delivered to you as of the date
hereof, and we assume no obligation to advise you of any changes of law or fact
that may occur after the date hereof, notwithstanding that such changes may
affect the legal analysis or conclusions contained herein. This opinion letter
is solely for your benefit in connection with the Transactions and may not be
relied on in any manner for any other purpose or by any other person or
transmitted to any other person without our prior consent.
Very truly yours,
EXHIBIT A-2
FORM OF OPINION OF IN-HOUSE COUNSEL FOR THE COMPANY
[▇▇▇▇▇▇ BROTHERS LOGO]
October 8, 2002
Structured Asset Securities Corporation Standard & Poor's Ratings Services,
▇▇▇ ▇▇▇▇▇▇▇ ▇▇▇▇▇▇ a division of The ▇▇▇▇▇▇-▇▇▇▇ Companies, Inc.
▇▇▇ ▇▇▇▇, ▇▇▇ ▇▇▇▇ ▇▇▇▇▇ ▇▇ ▇▇▇▇▇ ▇▇▇▇▇▇
▇▇▇ ▇▇▇▇, ▇▇▇ ▇▇▇▇ ▇▇▇▇▇
UBS Warburg LLC Fitch, Inc.
1285 Avenue of the Americas ▇▇▇ ▇▇▇▇▇ ▇▇▇▇▇▇ ▇▇▇▇▇
▇▇▇ ▇▇▇▇, ▇▇▇ ▇▇▇▇ ▇▇▇▇▇ ▇▇▇ ▇▇▇▇, ▇▇▇ ▇▇▇▇ ▇▇▇▇▇
▇▇▇▇▇▇ Brothers Inc. LaSalle Bank National Association
▇▇▇ ▇▇▇▇▇▇▇ ▇▇▇▇▇▇ ▇▇▇ ▇▇▇▇▇ ▇▇▇▇▇▇▇ ▇▇▇▇▇▇
▇▇▇ ▇▇▇▇, ▇▇▇ ▇▇▇▇ ▇▇▇▇▇ ▇▇▇▇▇▇▇, ▇▇▇▇▇▇▇▇ ▇▇▇▇▇
Credit Suisse First Boston Corporation ▇▇▇▇▇▇ Brothers Holdings Inc.,
▇▇ ▇▇▇▇▇▇▇ ▇▇▇▇▇▇ d/b/a ▇▇▇▇▇▇ Capital, a division of
▇▇▇ ▇▇▇▇, ▇▇▇ ▇▇▇▇ ▇▇▇▇▇ ▇▇▇▇▇▇ Brothers Holdings Inc.
▇▇▇ ▇▇▇▇▇▇▇ ▇▇▇▇▇▇
▇▇▇ ▇▇▇▇, ▇▇▇ ▇▇▇▇ ▇▇▇▇▇
▇▇▇▇▇▇▇ ▇▇▇▇▇ ▇▇▇▇▇▇ Inc.
▇▇▇ ▇▇▇▇▇▇▇▇▇ ▇▇▇▇▇▇
▇▇▇ ▇▇▇▇, ▇▇▇ ▇▇▇▇ ▇▇▇▇▇
Re: LB-UBS Commercial Mortgage Trust 2002-C4
Commercial Mortgage Pass-Through Certificates, Series 2002-C4
-------------------------------------------------------------
Ladies and Gentlemen:
I am internal counsel to ▇▇▇▇▇▇ Brothers Inc. ("LBI") and, in such
capacity, have acted as counsel to Structured Asset Securities Corporation, a
Delaware corporation ("SASCO"), and am familiar with matters pertaining to the
following agreements (collectively, the "Agreements"): (i) the Pooling and
Servicing Agreement dated as of September 11, 2002 (the "Pooling and Servicing
Agreement"), by and between SASCO, as depositor, Wachovia Bank, National
Association, as master servicer, Lennar Partners, Inc., as special servicer,
LaSalle Bank National Association, as trustee, and ABN AMRO Bank N.V., as fiscal
agent; (ii) the Mortgage Loan Purchase Agreement dated as of September 26, 2002,
by and between SASCO and ▇▇▇▇▇▇ Brothers Holdings Inc., doing business as ▇▇▇▇▇▇
Capital, a division of ▇▇▇▇▇▇ Brothers Holdings Inc. ("LBHI"); (iii) the
Mortgage Loan Purchase Agreement dated as of September 26, 2002, by and between
SASCO, UBS
Structured Asset Securities Corporation
▇▇▇▇▇▇ Brothers Inc.
UBS Warburg LLC
Credit Suisse First Boston Corporation
▇▇▇▇▇▇▇ ▇▇▇▇▇ ▇▇▇▇▇▇ Inc.
Standard & Poor's Ratings Services
Fitch, Inc.
LaSalle Bank National Association
▇▇▇▇▇▇ Brothers Holdings Inc.
October 8, 2002
Page 2
Warburg Real Estate Investments, Inc. ("UBSWREI"), and UBS Principal
Finance LLC as an additional party; (iv) the Underwriting Agreement dated as of
September 26, 2002, by and between SASCO, LBI, UBS Warburg LLC ("UBSW"), Credit
Suisse First Boston Corporation ("CSFB") and ▇▇▇▇▇▇▇ ▇▇▇▇▇ Barney Inc.
("Salomon") and acknowledged as to certain sections by UBSWREI and LBHI; and (v)
the Certificate Purchase Agreement dated as of September 26, 2002 by and between
SASCO, LBI and UBSW.
In connection with this opinion, I have examined, or have had examined on
my behalf, an executed copy of each of the Agreements, certificates and
statements of public officials and officers of SASCO and such other agreements,
instruments, documents and records as I have deemed necessary or appropriate for
the purposes of this opinion.
Based on the foregoing but subject to the assumptions, exceptions,
qualifications and limitations hereinafter expressed, I am of the opinion that:
1. SASCO is a corporation duly incorporated, validly existing and in
good standing under the laws of the State of Delaware, with all requisite
corporate power to enter into the Agreements.
2. Each of the Agreements has been duly authorized, executed and
delivered by SASCO.
3. The execution, delivery and performance of the Agreements by SASCO,
(i) to my knowledge, do not and will not result in a material breach or
violation of the terms or provisions of, or constitute a default under, any
indenture, mortgage, deed of trust, loan agreement or other agreement or
instrument known to me to which SASCO is a party, (ii) do not contravene
its certificate of incorporation or by-laws, and (iii) to my knowledge, do
not contravene any order of any court or governmental agency that names
SASCO and is specifically directed to its property (in each case, except
for such breaches, violations, defaults or contraventions as would not have
a material adverse effect on the ability of SASCO to perform its
obligations under the Agreements).
The foregoing opinions are subject to the following assumptions,
exceptions, qualifications and limitations:
Structured Asset Securities Corporation
▇▇▇▇▇▇ Brothers Inc.
UBS Warburg LLC
Credit Suisse First Boston Corporation
▇▇▇▇▇▇▇ ▇▇▇▇▇ Barney Inc.
Standard & Poor's Ratings Services
Fitch, Inc.
LaSalle Bank National Association
▇▇▇▇▇▇ Brothers Holdings Inc.
October 8, 2002
Page 3
A. I am a member of the Bar of the State of New York and render no
opinion as to the laws of any jurisdiction other than the laws of the State
of New York, the General Corporation Law of the State of Delaware and the
federal laws of the United States of America.
B. My opinions are limited to the present laws and to the facts as they
presently exist. I assume no obligation to revise or supplement this
opinion should the present laws of any jurisdiction referred to in
paragraph A. above be changed by legislative action, judicial decision or
otherwise.
C. I have assumed with your permission (i) the genuineness of all
signatures by each party other than SASCO, (ii) the legal capacity of all
natural persons signing or delivering any instrument, (iii) the
authenticity of documents submitted to me as originals and the conformity
with the authentic original documents of all documents submitted to me as
copies, and (iv) the due execution and delivery, pursuant to due
authorization, of all documents by each party other than SASCO.
D. I have relied on originals or copies, certified or otherwise
identified to my satisfaction, of the certificate of incorporation and
by-laws of SASCO, records of proceedings taken by SASCO, and other
corporate documents and records of SASCO, and have made such other
investigations as I have deemed relevant or necessary for the purpose of
this opinion. I have relied, without independent investigation, as to
factual matters on the representations and warranties contained in the
Agreements and on certificates of public officials and/or officers and
other representatives of SASCO.
This letter is rendered to you in connection with the Agreements and the
transactions related thereto and may not be relied upon by any other person or
by you in any other context or for any other purpose. This letter may not be
quoted in whole or in part, nor may copies thereof be furnished or delivered to
any other person, without my prior written consent.
Structured Asset Securities Corporation
▇▇▇▇▇▇ Brothers Inc.
UBS Warburg LLC
Credit Suisse First Boston Corporation
▇▇▇▇▇▇▇ ▇▇▇▇▇ ▇▇▇▇▇▇ Inc.
Standard & Poor's Ratings Services
Fitch, Inc.
LaSalle Bank National Association
▇▇▇▇▇▇ Brothers Holdings Inc.
October 8, 2002
Page 4
The foregoing opinions are given on the express understanding that the
undersigned is an officer of ▇▇▇▇▇▇ Brothers Inc. and shall in no event incur
any personal liability in connection with the said opinion.
Very truly yours,
EXHIBIT A-3
FORM OF LETTER TO BE DELIVERED BY SIDLEY ▇▇▇▇▇▇ ▇▇▇▇▇ & ▇▇▇▇ LLP
SPECIAL COUNSEL TO THE COMPANY AND COUNSEL TO THE UNDERWRITERS
REGARDING THE DISCLOSURE IN THE REGISTRATION STATEMENT
AND PROSPECTUS
SIDLEY ▇▇▇▇▇▇ ▇▇▇▇▇ & ▇▇▇▇ LLP
CHICAGO ▇▇▇ ▇▇▇▇▇▇▇ ▇▇▇▇▇▇ ▇▇▇▇▇▇▇
▇▇▇ ▇▇▇▇, ▇▇▇ ▇▇▇▇ ▇▇▇▇▇
DALLAS TELEPHONE ▇▇▇ ▇▇▇ ▇▇▇▇ GENEVA
FACSIMILE 212 839 5599
LOS ANGELES ▇▇▇.▇▇▇▇▇▇.▇▇▇ HONG KONG
SAN FRANCISCO FOUNDED 1866 LONDON
WASHINGTON, D.C. SHANGHAI
SINGAPORE
TOKYO
October 8, 2002
▇▇▇▇▇▇ Brothers Inc. Credit Suisse First Boston Corporation
▇▇▇ ▇▇▇▇▇▇▇ ▇▇▇▇▇▇ ▇▇ ▇▇▇▇▇▇▇ ▇▇▇▇▇▇
▇▇▇ ▇▇▇▇, ▇▇▇ ▇▇▇▇ ▇▇▇▇▇ ▇▇▇ ▇▇▇▇, ▇▇▇ ▇▇▇▇ ▇▇▇▇▇
UBS Warburg LLC ▇▇▇▇▇▇▇ ▇▇▇▇▇ Barney Inc.
1285 Avenue of the Americas ▇▇▇ ▇▇▇▇▇▇▇▇▇ ▇▇▇▇▇▇
▇▇▇ ▇▇▇▇, ▇▇▇ ▇▇▇▇ ▇▇▇▇▇ ▇▇▇ ▇▇▇▇, ▇▇▇ ▇▇▇▇ ▇▇▇▇▇
Re: LB-UBS Commercial Mortgage Trust 2002-C4
Commercial Mortgage Pass-Through Certificates, Series 2002-C4
-------------------------------------------------------------
Ladies and Gentlemen:
We have acted as special counsel to Structured Asset Securities
Corporation (the "Depositor"), ▇▇▇▇▇▇ Brothers Inc. ("LBI") and ▇▇▇▇▇▇ Brothers
Holdings Inc., doing business as ▇▇▇▇▇▇ Capital, a division of ▇▇▇▇▇▇ Brothers
Holdings Inc. ("LBHI"), in connection with the following transactions
(collectively, the "Transactions"):
(i) the sale by LBHI, and the purchase by the Depositor, of
certain multifamily and commercial mortgage loans (the "LBHI Mortgage
Loans"), pursuant to that certain Mortgage Loan Purchase Agreement,
dated as of September 26, 2002 (the "LBHI Mortgage Loan Purchase
Agreement"), between LBHI as seller and the Depositor as purchaser;
(ii) the sale by UBS Warburg Real Estate Investments Inc.
("UBSWREI" and, together with LBHI, the "Mortgage Loan Sellers"), and
the purchase by the Depositor, of certain other multifamily and
commercial mortgage loans (the "UBSWREI Mortgage Loans" and, together
with the LBHI Mortgage Loans, the "Mortgage Loans"), pursuant to that
certain Mortgage Loan Purchase Agreement, dated as of September 26,
2002 (the "UBSWREI Mortgage Loan Purchase Agreement" and, together with
the LBHI Mortgage Loan Purchase Agreement, the "Mortgage Loan Purchase
Agreements"), between UBSWREI as seller, the Depositor as purchaser and
UBS Principal Finance LLC as an additional party;
(iii) the creation of a common law trust (the "Trust") and the
issuance of an aggregate $1,455,238,297 Certificate Principal Balance
of Commercial Mortgage Pass-Through
SIDLEY ▇▇▇▇▇▇ ▇▇▇▇▇ & ▇▇▇▇ LLP NEW YORK
▇▇▇▇▇▇ Brothers Inc.
UBS Warburg LLC
Credit Suisse First Boston Corporation
▇▇▇▇▇▇▇ ▇▇▇▇▇ ▇▇▇▇▇▇ Inc.
October 8, 2002
Page 2
Certificates, Series 2002-C4 (the "Certificates"), consisting of
multiple classes designated Class A-1, Class A-2, Class A-3, Class ▇-▇,
▇▇▇▇▇ ▇-▇, Class X-CL, Class X-CP, Class X-VF, Class B, Class C, Class
D, Class E, Class F, Class G, Class H, Class J, Class K, Class L, Class
M, Class N, Class P, Class Q, Class S, Class T, Class U, Class R-I,
Class R-II, Class R-III, Class R-LR and Class V, pursuant to that
certain Pooling and Servicing Agreement, dated as of September 11, 2002
(the "Pooling and Servicing Agreement"), between the Depositor as
depositor, Wachovia Bank, National Association as master servicer,
Lennar Partners, Inc. as special servicer, LaSalle Bank National
Association as trustee (the "Trustee") and ABN AMRO Bank N.V. as fiscal
agent;
(iv) the transfer of the Mortgage Loans by the Depositor to
the Trust, pursuant to the Pooling and Servicing Agreement, in exchange
for the issuance of the Certificates at the direction of the Depositor;
(v) the sale by the Depositor, and the purchase by LBI, UBS
Warburg LLC, Credit Suisse First Boston Corporation and ▇▇▇▇▇▇▇ ▇▇▇▇▇
Barney Inc. (collectively, the "Underwriters"), of the Class ▇-▇, ▇▇▇▇▇
▇-▇, Class A-3, Class A-4, Class A-5, Class B, Class C, Class D, Class
E, Class F and Class G Certificates (collectively, the "Publicly
Offered Certificates"), pursuant to that certain Underwriting
Agreement, dated as of September 26, 2002 (the "Underwriting
Agreement"), between the Depositor and the Underwriters, and
acknowledged, as to certain sections, by UBSWREI and LBHI;
(vi) the negotiation and execution of that certain LBHI
Indemnification Agreement, dated as of September 26, 2002 (the "LBHI
Indemnification Agreement"), between LBHI, the Depositor and the
Underwriters; and
(vii) the negotiation and execution of that certain UBS
Indemnification Agreement, dated as of September 26, 2002 (the "UBS
Indemnification Agreement" and, together with the LBHI Indemnification
Agreement, the "Indemnification Agreements"), between UBSWREI,
UBS(USA), Inc., the Depositor and the Underwriters.
In the course of our acting as special counsel to the Depositor, LBI
and LBHI as described above, we prepared or reviewed the Pooling and Servicing
Agreement, the Underwriting Agreement, the Mortgage Loan Purchase Agreements and
the Indemnification Agreements (collectively, the "Agreements"). Capitalized
terms not defined herein have the respective meanings set forth in the Pooling
and Servicing Agreement and, to the extent not defined therein, in the other
Agreements.
In addition, with the knowledge and consent of the Depositor and the
Underwriters, we have also acted as special counsel to those parties in
connection with the preparation or review of the following documents and all
exhibits thereto (collectively with the Agreements, the "Relevant Documents"):
(a) the Prospectus Supplement, dated September 26, 2002 (the
"Prospectus Supplement"), specifically relating to the Publicly Offered
Certificates and the Trust;
SIDLEY ▇▇▇▇▇▇ ▇▇▇▇▇ & ▇▇▇▇ LLP NEW YORK
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(b) the Prospectus, dated September 16, 2002, relating to
publicly offered mortgage-backed securities, including mortgage
pass-through certificates evidencing interests in trust funds
established by the Depositor (the "Basic Prospectus" and, together with
the Prospectus Supplement, the "Prospectus");
(c) the registration statement on Form S-3 (No. 333-73338)
(the "Registration Statement") filed with the Securities and Exchange
Commission (the "Commission");
(d) the loan agreement, the Mortgage Note and selected
provisions of the Mortgage for the Mortgage Loan described in the
Prospectus Supplement as the "▇▇▇▇▇▇▇▇ Mall Mortgage Loan"; and
(e) asset summaries prepared and provided to us by LBHI with
respect to the Mortgaged Properties securing the LBHI Mortgage Loans.
Furthermore, we have discussed the information contained in the
Relevant Documents with certain representatives of the Depositor, the
Underwriters and the other parties to the Agreements and their respective
counsel (in addition to us).
For purposes of delivering this letter, we have also examined originals
or copies, certified or otherwise identified to our satisfaction, of such other
documents and records as we have deemed relevant or necessary as the basis for
the statements made in this letter; we have obtained such certificates from and
made such inquiries of officers and representatives of the parties to the
Agreements and public officials as we have deemed relevant or necessary as the
basis for the statements made in this letter; and we have relied upon, and
assumed the accuracy of, such other documents and records, such certificates and
the statements made in response to such inquiries, with respect to the factual
matters upon which the statements made in this letter are based. We have also
assumed (i) the truthfulness and accuracy of each of the representations and
warranties as to factual matters contained in the Agreements, (ii) the legal
capacity of natural persons, (iii) the genuineness of all signatures, (iv) the
authenticity of all documents submitted to us as originals, (v) the conformity
to authentic originals of all documents submitted to us as certified, conformed
or photostatic copies, (vi) the due organization of each of the parties to the
Agreements and the valid existence of each such party in good standing under the
laws of its jurisdiction of organization, (vii) the power and authority of all
parties to the Agreements to enter into, perform under and consummate the
transactions contemplated by the Agreements, without any resulting conflict with
or violation of the organizational documents of any such party or with or of any
law, rule, regulation, order, writ or decree applicable to any such party or its
assets, and without any resulting default under or breach of any other agreement
or instrument by which any such party is bound or which is applicable to it or
its assets, (viii) the due authorization by all necessary action, and the due
execution and delivery, of the Agreements by all parties thereto, (ix) the
constitution of each of the Agreements as the legal, valid and binding
obligation of each party thereto, enforceable against such party in accordance
with its terms, (x) the compliance with the Agreements by all parties thereto
and, in the case of the Pooling and Servicing Agreement, by the registered
holders and beneficial owners of the Certificates, (xi) the conformity, to the
requirements of the Pooling and Servicing Agreement and the Mortgage Loan
Purchase Agreements, of
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the Mortgage Notes, the Mortgages and the other documents delivered to the
Trustee by, on behalf of or at the direction of the Depositor and/or the
Mortgage Loan Sellers, (xii) the conformity of the text of each document filed
with the Commission through the Commission's Electronic Data Gathering, Analysis
and Retrieval System to the printed documents reviewed by us, and (xiii) the
absence of any other agreement that supplements or otherwise modifies the
express terms of the Agreements. In rendering this letter, we do not make any
statement or express any view concerning the laws of any jurisdiction other than
the federal laws of the United States of America.
While we have made no independent check or verification of, and do not
assume any responsibility for, the accuracy, completeness or fairness of the
statements contained in the Registration Statement or the Prospectus, on the
basis of and subject to the foregoing, nothing has come to our attention that
has caused us to believe that (a) the Registration Statement, as of its
effective date, contained an untrue statement of a material fact or omitted to
state a material fact required to be stated therein or necessary to make the
statements therein not misleading, or (b) the Prospectus, as of the date of the
Prospectus Supplement or as of the date hereof, contained or contains any untrue
statement of a material fact or omitted or omits to state any material fact
necessary to make the statements therein, in the light of the circumstances
under which they were made, not misleading, except that we express no view or
belief as to (w) any information contained in or omitted from the Prospectus
Supplement with respect to the description of the Mortgage Loans identified
therein as the 1166 Avenue of the Americas Mortgage Loan, the ▇▇▇ ▇▇▇▇▇ ▇▇▇▇▇▇
Mortgage Loan or the Valley Fair Mall Mortgage Loan, the description of the
obligors under, and the Mortgaged Properties relating to, the foregoing three
Mortgage Loans and/or the description of the servicing and administration of the
1166 Avenue of the Americas Mortgage Loan or any related REO Property, (x) any
financial, statistical or numerical data set forth or referred to in or omitted
from the Registration Statement or the Prospectus, (y) the information set forth
on or omitted from any diskette that may accompany the Prospectus, or (z) any
documents or information incorporated by reference in the Registration Statement
or the Prospectus.
In connection with delivering this letter, we advise you that, as to
materiality, we have relied, to the extent that we may properly do so in the
discharge of our professional responsibilities as experienced law practitioners,
upon the judgment of officers and representatives of the Depositor, the
Underwriters and the Mortgage Loan Sellers. In addition, we call to your
attention that, with your knowledge and consent, we have not, except to the
limited extent described above, examined or otherwise reviewed any of the
Mortgage Files or any particular documents contained in such files or any other
document with respect to the Mortgage Loans. When used in this letter, the term
"attention" or words of similar import mean the conscious awareness of facts or
other information of the Sidley ▇▇▇▇▇▇ ▇▇▇▇▇ & ▇▇▇▇ LLP attorneys currently
practicing law with this firm who have been actively involved in providing the
representation described above in connection with the Transactions.
The statements set forth herein are being made to you as of the date
hereof, and we assume no obligation to advise you of any changes of law or fact
that may occur after the date hereof, notwithstanding that such changes may
affect the statements made herein. This letter is being delivered
SIDLEY ▇▇▇▇▇▇ ▇▇▇▇▇ & ▇▇▇▇ LLP NEW YORK
▇▇▇▇▇▇ Brothers Inc.
UBS Warburg LLC
Credit Suisse First Boston Corporation
▇▇▇▇▇▇▇ ▇▇▇▇▇ ▇▇▇▇▇▇ Inc.
October 8, 2002
Page 5
solely for the benefit of the persons to which it is addressed in connection
with the Transactions; accordingly, it may not be quoted or otherwise delivered
to or relied upon by any other person (including, without limitation, any person
who acquires Publicly Offered Certificates from any Underwriter), filed with any
governmental authority or other regulatory agency or otherwise circulated or
utilized for any other purpose without our prior written consent.
Very truly yours,