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Exhibit 99.1
CWCapital Mortgage Loan Purchase Agreement
See attached
<PAGE>
MORTGAGE LOAN PURCHASE AGREEMENT
Pursuant to this Mortgage Loan Purchase Agreement dated as of
August
1, 2007 (the "Agreement"), between CWCapital Mortgage Securities
I LLC
("CWCapital Securities I") and CWCapital Mortgage Securities VI
LLC ("CWCapital
Securities VI" and, together with CWCapital Securities I, their
successors and
permitted assigns hereunder, collectively, the "Seller"),
CWCapital LLC, as an
additional party with respect to the mortgage loans identified
on the schedule
annexed hereto as Exhibit A ("CWCapital" and, together with
CWCapital Securities
I and CWCapital Securities VI, the "CWCapital Parties") and
CWCapital Commercial
Funding Corp. (together with its successors and permitted
assigns hereunder, the
"Purchaser"), the Seller intends to sell and the Purchaser
intends to purchase
certain multifamily and commercial mortgage loans, as identified
on the schedule
annexed hereto as Exhibit A (the "Mortgage Loan Schedule")
(collectively, the
"Mortgage Loans").
The Purchaser intends to deposit the Mortgage Loans, together
with
other assets, into a trust fund (the "Trust Fund"), the
beneficial ownership of
which will be evidenced by multiple classes (each, a "Class") of
mortgage
pass-through certificates (the "Certificates") to be identified
as the CWCapital
Commercial Funding Corp., Commercial Mortgage Trust 2007-C3,
Commercial Mortgage
Pass-Through Certificates, Series 2007-C3. One or more "real
estate mortgage
investment conduit" ("REMIC") elections will be made with
respect to the Trust
Fund. The Certificates will be issued pursuant to a Pooling and
Servicing
Agreement (the "Pooling and Servicing Agreement"), to be dated
as of August 1,
2007, among the Purchaser, as depositor, Wachovia Bank, National
Association, as
master servicer (the "Master Servicer"), CWCapital Asset
Management LLC, as
special servicer (the "Special Servicer"), and Wells Fargo Bank,
N.A., as
trustee (the "Trustee"). Capitalized terms used but not defined
herein have the
respective meanings set forth in the Pooling and Servicing
Agreement, as in
effect on the Closing Date.
The Purchaser has entered into an Underwriting Agreement
(the
"Underwriting Agreement"), dated as of August 3, 2007, with
Wachovia Capital
Markets, LLC ("Wachovia Securities") and Citigroup Global
Markets Inc. ("CGMI"
and, together with Wachovia Securities, in such capacity, the
"Underwriters"),
whereby the Purchaser will sell to the Underwriters all of the
Certificates that
are to be registered under the Securities Act of 1933, as
amended (the
"Securities Act"). The Purchaser has also entered into a
Certificate Purchase
Agreement (the "Certificate Purchase Agreement"), dated as of
August 3, 2007,
with Wachovia Securities and CGMI (collectively, in such
capacity, the "Initial
Purchasers"), whereby the Purchaser will sell to the Initial
Purchasers all of
the remaining Certificates (other than the Residual Interest
Certificates).
In connection with the transactions contemplated hereby, the
Seller,
the Purchaser, the Underwriters and the Initial Purchasers have
entered into an
Indemnification Agreement (the "Indemnification Agreement"),
dated as of August
3, 2007.
Now, therefore, in consideration of the premises and the
mutual
agreements set forth herein, the parties agree as follows:
SECTION 1. Agreement to Purchase. The Seller agrees to sell, and
the
Purchaser agrees to purchase, the Mortgage Loans identified on
the Mortgage Loan
Schedule. The Mortgage Loan Schedule may be amended to reflect
the actual
Mortgage Loans accepted by the Purchaser pursuant to the terms
hereof. The
Mortgage Loans will have an aggregate principal balance of
$562,527,524.65 (the
"CWCapital Mortgage Loan Balance") as of the close of business
on, with respect
to each Mortgage Loan, its Due Date in August 2007 (each such
date, the
applicable "Cut-off Date"), after giving effect to any and all
payments of
principal due thereon on or before such date, whether or not
received. The
purchase and sale of the Mortgage Loans shall take place on
August 17, 2007, or
such other date as shall be mutually acceptable to the parties
hereto (the
"Closing Date"). Adequate consideration shall be paid to the
Seller or its
designee by wire transfer in immediately available funds (or by
such other
method as shall be mutually acceptable to the parties hereto) on
the Closing
Date.
SECTION 2. Conveyance of Mortgage Loans.
(a) Effective as of the Closing Date, subject only to receipt of
the
purchase price referred to in Section 1 hereof and satisfaction
or waiver of the
conditions to closing set forth in Section 5 hereof, the Seller
does hereby
sell, transfer, assign, set over and otherwise convey to the
Purchaser, without
recourse, all the right, title and interest of the Seller in and
to the Mortgage
Loans identified on the Mortgage Loan Schedule as of such date,
subject to the
rights of the holders of any related Companion Loans as
specified in the related
Co-Lender Agreement, as applicable, and the Purchaser hereby
assumes such
Mortgage Loans, together with the rights and obligations related
to such
Mortgage Loans as specified in the related Co-Lender Agreement.
The Mortgage
Loan Schedule, as it may be amended, shall conform to the
requirements set forth
in this Agreement and the Pooling and Servicing Agreement.
(b) The Purchaser or its assignee shall, subject to the rights
of
the holders of any related Companion Loans, as applicable, be
entitled to
receive all scheduled payments of principal and interest due
after the Cut-off
Date, and all other recoveries of principal and interest
collected after the
Cut-off Date (other than in respect of principal and interest on
the Mortgage
Loans due on or before the Cut-off Date). All scheduled payments
of principal
and interest due on or before the Cut-off Date for each Mortgage
Loan, but
collected after such date, shall, subject to the rights of the
holders of any
related Companion Loans, as applicable, belong to, and be
promptly remitted to,
the Seller.
(c) On or before the Closing Date, the Seller shall, on behalf
of
the initial Purchaser, deliver to and deposit, or cause to be
delivered and
deposited, with the Trustee a Mortgage File for each Mortgage
Loan in accordance
with the terms of, and conforming to the requirements set forth
in, the Pooling
and Servicing Agreement; provided that, with respect to any
Non-Serviced Trust
Loan, the preceding delivery requirements will be satisfied by
delivery of the
original Mortgage Note (and all intervening endorsements)
related to such
Non-Serviced Trust Loan and a copy of the "mortgage file"
delivered under the
applicable Lead PSA. If the Seller cannot deliver or cause to be
delivered the
documents and/or instruments referred to in clauses (a)(ii),
(a)(iii), (a)(vi)
(if recorded) and (a)(viii) of the definition of "Mortgage File"
solely because
of delay caused by the public recording office where such
document or instrument
has been delivered for recordation, the Seller shall deliver to
the Trustee a
copy of the original, certified by the Seller to be a true and
complete copy of
the original thereof submitted for recording. Concurrently with
such delivery,
the Seller shall deliver, or cause to be delivered, to the
Master Servicer and
the Special Servicer copies of the Mortgage Note, Mortgage(s)
and any reserve
and cash management agreements with respect to each Mortgage
Loan for which a
Mortgage File is required to be delivered to the Trustee.
(d) For each Mortgage Loan for which a Mortgage File is required
to
be delivered to the Trustee, the Seller shall bear the
reasonable out-of-pocket
costs and expenses related to recording or filing, as the case
may be, in the
appropriate public office for real property records or Uniform
Commercial Code
financing statements, as appropriate, each related assignment of
Mortgage and
assignment of Assignment of Leases, in favor of the Trustee
referred to in
clause (a)(iv) of the definition of "Mortgage File" and each
related UCC-2 and
UCC-3 assignment referred to in clause (a)(viii) of the
definition of "Mortgage
File." If any such document or instrument is lost or returned
unrecorded or
unfiled, as the case may be, because of a defect therein, then
the Seller shall
prepare a substitute therefor or cure such defect or cause such
to be done, as
the case may be, and the Seller shall deliver such substitute or
corrected
document or instrument to the Trustee (or, if the Mortgage Loan
is then no
longer subject to the Pooling and Servicing Agreement, to the
then holder of
such Mortgage Loan).
(e) The Seller shall deliver, or cause to be delivered, to
the
Master Servicer within 10 business days after the Closing Date,
all documents
and records that (i) relate to the servicing and administration
of the Serviced
Loans, (ii) are reasonably necessary for the ongoing
administration and/or
servicing of the Serviced Loans and (iii) are in possession or
control of the
Seller, together with (x) all unapplied Escrow Payments and
Reserve Funds in the
possession or under control of the Seller that relate to the
Serviced Loans and
(y) a statement indicating which Escrow Payments and Reserve
Funds are allocable
to such Serviced Loans), provided that the Seller shall not be
required to
deliver any draft documents, privileged or other internal
communications, credit
underwriting, due diligence analyses or data or internal
worksheets, memoranda,
communications or evaluations.
(f) After the Seller's transfer of the Mortgage Loans to the
Purchaser, as provided herein, the Seller shall not take any
action inconsistent
with the Purchaser's ownership of the Mortgage Loans. Except for
actions that
are the express responsibility of another party hereunder or
under the Pooling
and Servicing Agreement, and further except for actions that the
Seller is
expressly permitted to complete subsequent to the Closing Date,
the Seller
shall, on or before the Closing Date, take all actions required
under applicable
law to effectuate the transfer of the Mortgage Loans by the
Seller to the
Purchaser.
(g) The Seller shall provide, or cause to be provided,
information
necessary for the Master Servicer to produce the initial data
with respect to
each Mortgage Loan for the CMSA Financial File and the CMSA Loan
Periodic Update
File that are required to be prepared by the Master Servicer
pursuant to the
Pooling and Servicing Agreement.
(h) The Seller shall provide the Master Servicer with the
Supplemental Servicer Schedule.
SECTION 3. Representations, Warranties and Covenants of
Seller.
(a) each of the CWCapital Parties hereby represents and warrants
to
and covenants with the Purchaser, as of the date hereof,
that:
(i) (A) CWCapital is a limited liability company duly
organized,
validly existing and in good standing under the laws of the
State of
Massachusetts and (B) CWCapital Securities I and CWCapital
Securities VI
are each a limited liability company duly organized, validly
existing and
in good standing under the laws of the State of Delaware, are
duly
qualified as foreign organizations in good standing in all
jurisdictions
to the extent such qualification is necessary to hold and sell
the
Mortgage Loans or otherwise comply with its obligations under
this
Agreement, except where the failure to be so qualified would not
have a
material adverse effect on their ability to perform their
obligations
hereunder, and possess all requisite authority and power to
carry on their
business as currently conducted by it and to execute, deliver
and comply
with their obligations under the terms of this Agreement.
(ii) This Agreement has been duly and validly authorized,
executed
and delivered by each of the CWCapital Parties and, assuming
due
authorization, execution and delivery hereof by the Purchaser,
constitutes
a legal, valid and binding obligation of each of the CWCapital
Parties,
enforceable against each of the CWCapital Parties in accordance
with its
terms, except as such enforcement may be limited by (A)
bankruptcy,
insolvency, reorganization, receivership, moratorium or other
similar laws
affecting the enforcement of creditors' rights in general, and
(B) general
equity principles (regardless of whether such enforcement is
considered in
a proceeding in equity or at law).
(iii) The execution and delivery of this Agreement by each of
the
CWCapital Parties' and the CWCapital Parties' performance and
compliance
with the terms of this Agreement will not (A) violate each of
the
CWCapital Parties' organizational documents, (B) violate any law
or
regulation or any administrative decree or order to which the
CWCapital
Parties are subject or (C) constitute a default (or an event
which, with
notice or lapse of time, or both, would constitute a default)
under, or
result in the breach of, any material contract, agreement or
other
instrument to which the CWCapital Parties are a party or by
which the
CWCapital Parties are bound.
(iv) Each of the CWCapital Parties are not in default with
respect
to any order or decree of any court or any order, regulation or
demand of
any federal, state, municipal or other governmental agency or
body, which
default might have consequences that would, in the CWCapital
Parties'
reasonable and good faith judgment, materially and adversely
affect the
condition (financial or other) or operations of the CWCapital
Parties or
their properties or have consequences that would, in each of the
CWCapital
Parties' reasonable and good faith judgment, materially and
adversely
affect its performance hereunder.
(v) Each of the CWCapital Parties' are not a party to or bound
by
any agreement or instrument or subject to any organizational
document or
any other corporate restriction or any judgment, order, writ,
injunction,
decree, law or regulation that would, in the CWCapital Parties'
reasonable
and good faith judgment, materially and adversely affect the
ability of
each of the CWCapital Parties to perform its obligations under
this
Agreement or that requires the consent of any third person to
the
execution and delivery of this Agreement by the CWCapital
Parties or the
performance by the CWCapital Parties of their obligations under
this
Agreement.
(vi) Except for the recordation and/or filing of assignments
and
other transfer documents with respect to the Mortgage Loans,
as
contemplated by Section 2(d), no consent, approval,
authorization or order
of, registration or filing with, or notice to, any court or
governmental
agency or body, is required for the execution, delivery and
performance by
each of the CWCapital Parties of or compliance by the CWCapital
Parties'
with this Agreement or the consummation of the transactions
contemplated
by this Agreement; and no bulk sale law applies to such
transactions.
(vii) No litigation is pending or, to the best of the
CWCapital
Parties' knowledge, threatened against any of the CWCapital
Parties that
would, in the CWCapital Parties' good faith and reasonable
judgment,
prohibit its entering into this Agreement or materially and
adversely
affect the performance by the CWCapital Parties of their
obligations under
this Agreement.
(viii) The Seller intends to treat the transfer of the
Mortgage
Loans to the Purchaser as a sale for accounting and tax
purposes. In
connection with the foregoing, the Seller shall cause all of its
records
to reflect such transfer as a sale (as opposed to a secured
loan). The
consideration received by the Seller upon the sale of the
Mortgage Loans
to the Purchaser will constitute at least reasonably equivalent
value and
fair consideration for the Mortgage Loans. The Seller will be
solvent at
all relevant times prior to, and will not be rendered insolvent
by, the
sale of the Mortgage Loans to the Purchaser. The Seller is not
selling the
Mortgage Loans to the Purchaser with any intent to hinder, delay
or
defraud any of the creditors of the Seller. After giving effect
to its
transfer of the Mortgage Loans to the Purchaser, as provided
herein, the
value of the Seller's assets, either taken at their present fair
saleable
value or at fair valuation, will exceed the amount of the
Seller's debts
and obligations, including contingent and unliquidated debts
and
obligations of the Seller, and the Seller will not be left
with
unreasonably small assets or capital with which to engage in and
conduct
its business. The Mortgage Loans do not constitute all or
substantially
all of the assets of the Seller. The Seller does not intend to,
and does
not believe that it will, incur debts or obligations beyond its
ability to
pay such debts and obligations as they mature.
(ix) No proceedings looking toward liquidation, dissolution
or
bankruptcy of the Seller are pending or contemplated.
(b) The CWCapital Parties hereby make, for the benefit of
the
Purchaser, with respect to each Mortgage Loan, as of the Closing
Date or as of
such other date expressly set forth therein, each of the
representations and
warranties set forth on Exhibit B attached hereto, except as
otherwise set forth
on Exhibit C attached hereto.
SECTION 4. Representations and Warranties of the Purchaser. In
order
to induce the Seller to enter into this Agreement, the Purchaser
hereby
represents and warrants for the benefit of the CWCapital Parties
as of the date
hereof that:
(i) The Purchaser is a corporation duly organized, validly
existing
and in good standing under the laws of the State of Delaware.
The
Purchaser has the full corporate power and authority and legal
right to
acquire the Mortgage Loans from the Seller and to transfer the
Mortgage
Loans to the Trustee.
(ii) This Agreement has been duly and validly authorized,
executed
and delivered by the Purchaser and, assuming due authorization,
execution
and delivery hereof by the CWCapital Parties, constitutes a
legal, valid
and binding obligation of the Purchaser, enforceable against the
Purchaser
in accordance with its terms, except as such enforcement may be
limited by
(A) bankruptcy, insolvency, reorganization, receivership,
moratorium or
other similar laws affecting the enforcement of creditors'
rights in
general, and (B) general equity principles (regardless of
whether such
enforcement is considered in a proceeding in equity or at
law).
(iii) The execution and delivery of this Agreement by the
Purchaser
and the Purchaser's performance and compliance with the terms of
this
Agreement will not (A) violate the Purchaser's organizational
documents,
(B) violate any law or regulation or any administrative decree
or order to
which the Purchaser is subject or (C) constitute a default (or
an event
which, with notice or lapse of time, or both, would constitute a
default)
under, or result in the breach of, any material contract,
agreement or
other instrument to which the Purchaser is a party or by which
the
Purchaser is bound.
(iv) Except as may be required under federal or state
securities
laws (and which will be obtained on a timely basis), no consent,
approval,
authorization or order of, registration or filing with, or
notice to, any
governmental authority or court, is required for the execution,
delivery
and performance by the Purchaser of or compliance by the
Purchaser with
this Agreement, or the consummation by the Purchaser of any
transaction
described in this Agreement.
(v) Under GAAP and for federal income tax purposes, the
Purchaser
will report the transfer of the Mortgage Loans by the Seller to
the
Purchaser, as provided herein, as a sale of the Mortgage Loans
to the
Purchaser in exchange for the consideration specified in Section
1 hereof.
(vi) None of the acquisition of the Mortgage Loans by the
Purchaser,
the transfer of the Mortgage Loans to the Trustee, or the
execution,
delivery or performance of this Agreement by the Purchaser,
results or
will result in the creation or imposition of any lien on any of
the
Purchaser's assets or property, or conflicts or will conflict
with,
results or will result in a breach of, or requires or will
require the
consent of any third person or constitutes or will constitute a
default
under (A) any term or provision of the Purchaser's certificate
of
incorporation or bylaws, (B) any term or provision of any
material
agreement, contract, instrument or indenture, to which the
Purchaser is a
party or by which the Purchaser is bound, or (C) any law,
rule,
regulation, order, judgment, writ, injunction or decree or any
court or
governmental authority having jurisdiction over the Purchaser or
its
assets.
SECTION 5. Notice of Breach; Cure; Repurchase; Covenant of
the
Seller.
(a) If any of the CWCapital Parties discovers or receives notice
in
accordance with Section 10 hereof of a Document Defect or a
breach of any of its
representations and warranties made pursuant to Section 3(b)
hereof (each such
breach, a "Breach") relating to any Mortgage Loan, and such
Document Defect or
Breach materially and adversely affects the value of the
Mortgage Loan or the
related Mortgaged Property or the interests of the Purchaser in
such Mortgage
Loan (in which case any such Document Defect or Breach would be
a "Material
Document Defect" or a "Material Breach," as the case may be),
then (subject to
Section 5(b)) the Seller shall, within 90 days after its
discovery or receipt of
such notice of such Material Document Defect or Material Breach
(or, in the case
of a Material Document Defect or Material Breach that affects
whether a Mortgage
Loan was, as of the Closing Date, is or will continue to be a
"qualified
mortgage" within the meaning of the REMIC Provisions (a
"Qualified Mortgage"),
not later than 90 days after any party discovering such Material
Document Defect
or Material Breach) (such 90-day period, in either case, the
"Initial Resolution
Period"), (i) cure such Material Document Defect or Material
Breach, as the case
may be, in all material respects, which cure shall include
payment of any
Additional Trust Fund Expenses associated therewith, or (ii)
repurchase the
affected Mortgage Loan (or the related Mortgaged Property, or in
the case of any
Mortgaged Property related to a Loan Group, to the extent of the
Seller's
interest therein) from, and in accordance with the directions
of, the Purchaser
or its designee, at a price equal to the Purchase Price;
provided that if (A)
any such Material Breach or Material Document Defect, as the
case may be, does
not affect whether the Mortgage Loan was, as of the Closing
Date, is or will
continue to be a Qualified Mortgage, (B) such Material Breach or
Material
Document Defect, as the case may be, is capable of being cured
but not within
the applicable Initial Resolution Period, (C) the Seller has
commenced and is
diligently proceeding with the cure of such Material Breach or
Material Document
Defect, as the case may be, within the applicable Initial
Resolution Period and
(D) the Seller shall have delivered to the Purchaser a
certification executed on
behalf of the Seller by an officer thereof confirming that such
Material Breach
or Material Document Defect, as the case may be, is not capable
of being cured
within the applicable Initial Resolution Period, setting forth
what actions the
Seller is pursuing in connection with the cure thereof and
stating that the
Seller anticipates that such Material Breach or Material
Document Defect, as the
case may be, will be cured within an additional period not to
exceed 90 days
beyond the end of the applicable Initial Resolution Period, then
the Seller
shall have such additional 90-day period (the "Resolution
Extension Period") to
complete such cure or, failing such, to repurchase the affected
Mortgage Loan
(or the related Mortgaged Property) unless, solely in the case
of a Material
Document Defect, (x) the Mortgage Loan is, at the end of the
Initial Resolution
Period, then a Specially Serviced Mortgage Loan and a Servicing
Transfer Event
has occurred as a result of a monetary default or as described
in clause (e),
clause (f) or clause (g) of the definition of "Specially
Serviced Mortgage Loan"
in the Pooling and Servicing Agreement and (y) the Material
Document Defect was
identified in a certification delivered to Seller by the Trustee
pursuant to
Section 2.02 of the Pooling and Servicing Agreement not less
than 90 days prior
to the delivery of the notice of such Material Document Defect;
and provided,
further, that, if any such Material Document Defect is still not
cured after the
initial 90-day period and any such additional 90-day period
solely due to the
failure of the Seller to have received the recorded document,
then the Seller
shall be entitled to continue to defer its cure and repurchase
obligations in
respect of such Document Defect so long as the Seller certifies
to the Purchaser
every 30 days thereafter that the Document Defect is still in
effect solely
because of its failure to have received the recorded document
and that the
Seller is diligently pursuing the cure of such defect
(specifying the actions
being taken), except that no such deferral of cure or repurchase
may continue
beyond the second anniversary of the Closing Date. Any such
repurchase of a
Mortgage Loan shall be on a whole loan, servicing released
basis. The Seller
shall have no obligation to monitor the Mortgage Loans regarding
the existence
of a Breach or Document Defect, but if the Seller discovers a
Material Breach or
Material Document Defect with respect to a Mortgage Loan, it
will notify the
Purchaser. Provided that the Master Servicer has notice of such
Material
Document Defect or Material Breach, the Master Servicer shall
notify the Seller
if the related Mortgage Loan becomes a Specially Serviced
Mortgage Loan during
any applicable cure periods. Any of the following document
defects shall be
conclusively presumed to be a Material Document Defect: (a) the
absence from the
Mortgage File of the original signed Mortgage Note, together
with the
endorsements referred to in clause (a)(i) of the definition of
"Mortgage File,"
unless the Mortgage File contains a signed lost note affidavit
and indemnity
with respect to the missing Mortgage Note and any missing
endorsement that
appears to be regular on its face, (b) other than with respect
to a Non-Serviced
Trust Loan, the absence from the Mortgage File of the original
executed Mortgage
or a copy of such Mortgage certified by the local authority with
which the
Mortgage was recorded, in each case with evidence of recording
thereon, that
appears to be regular on its face, unless there is included in
the Mortgage File
a copy of the executed Mortgage and a certificate stating that
the original
signed Mortgage was sent for recordation, (c) other than with
respect to a
Non-Serviced Trust Loan, the absence from the Mortgage File of
the original or a
copy of the lender's title insurance policy, together with all
endorsements or
riders (or copies thereof) that were issued with or subsequent
to the issuance
of such policy, or marked up insurance binder or title
commitment which is
marked as a binding commitment and countersigned by title
company, insuring the
priority of the Mortgage as a first lien on the Mortgaged
Property, (d) other
than with respect to a Non-Serviced Trust Loan, the absence from
the Mortgage
File of any intervening assignments required to create a
complete chain of
assignment to the Trustee on behalf of the Trust and a
certificate stating that
the original intervening assignments were sent for recordation,
unless there is
included in the Mortgage File a certified copy of the
intervening assignment,
(e) the absence from the Mortgage File of a copy of the ground
lease with
respect to any leasehold mortgages or (f) other than with
respect to a
Non-Serviced Trust Loan, the absence from the Servicing File of
any original
letter of credit.
(b) If (x) any Mortgage Loan is subject to a Material Breach
or
Material Document Defect and would otherwise be required to be
repurchased as
contemplated by Section 5(a), (y) such Mortgage Loan is a
Cross-Collateralized
Mortgage Loan or is secured by a portfolio of Mortgaged
Properties, and (z) the
applicable Material Breach of Material Document Defect does not
constitute a
Material Breach or Material Document Defect, as the case may be,
as to any
related Cross-Collateralized Mortgage Loan or applies to only
specific Mortgaged
Properties in such portfolio, the Purchaser or its designee
shall use reasonable
efforts, subject to the terms of the related Mortgage Loans, to
prepare and, to
the extent necessary and appropriate, have executed by the
related Mortgagor and
record, such documentation as may be necessary to (i) in the
case of a
Cross-Collateralized Group, terminate the
cross-collateralization between the
Mortgage Loans in such Cross-Collateralized Group that are to be
repurchased, on
the one hand, and the remaining Mortgage Loans therein, on the
other hand, such
that those two groups of Mortgage Loans are each secured only by
the Mortgaged
Properties identified in the Mortgage Loan Schedule as directly
corresponding
thereto or (ii) in the case of Mortgage Loan secured by a
portfolio of Mortgaged
Properties, release the affected Mortgaged Properties from
the
cross-collateralization of the Mortgage Loan; provided that, if
such
Cross-Collateralized Group is still subject to the Pooling and
Servicing
Agreement, then no such termination shall be effected unless and
until (i) the
Purchaser or its designee has received from the Seller (A) an
Opinion of Counsel
to the effect that such termination or release will not cause an
Adverse REMIC
Event to occur with respect to any REMIC Pool or an Adverse
Grantor Trust Event
to occur with respect to the Grantor Trust and (B) a written
confirmation from
each Rating Agency that such termination or release will not
cause an Adverse
Rating Event to occur with respect to any Class of Certificates,
(ii) the debt
service coverage ratio for the four preceding calendar quarters
for all of the
Mortgage Loans relating to such Cross-Collateralized Group
remaining is not less
than 0.05x below the debt service coverage ratio for all
Mortgage Loans of such
Cross-Collateralized Group or Mortgaged Properties relating to
such Mortgage
Loan secured by a portfolio of Mortgaged Properties (including
the affected
Mortgage Loan) or Mortgage Loan (including the affected
Mortgaged Property) set
forth in the Prospectus Supplement, (iii) the loan-to-value
ratio for all of the
Mortgage Loans of such Cross-Collateralized Group remaining is
not greater than
5% more than the loan-to-value ratio for all Mortgage Loans of
such
Cross-Collateralized Group or Mortgaged Properties relating to
such Mortgage
Loan secured by a portfolio of Mortgaged Properties (including
the affected
Mortgage Loan) or Mortgage Loan (including the affected
Mortgaged Property) set
forth in the Prospectus Supplement, and (iv) the Directing
Holder (if one is
acting) has consented (which consent shall not be unreasonably
withheld and
shall be deemed to have been given if no written objection is
received by the
Seller within 10 Business Days of the Directing Holder's receipt
of a written
request for such consent); and provided, further, that the
Seller may, at its
option, purchase the entire Cross-Collateralized Group or
Mortgage Loan in lieu
of terminating the cross-collateralization or a release of the
affected
Mortgaged Properties from the cross-collateralization of the
Mortgage Loan. In
the event that the cross-collateralization of any
Cross-Collateralized Group is
terminated or any Mortgaged Property related to a Mortgage Loan
secured by a
portfolio of Mortgaged Properties is released pursuant to this
paragraph, the
Seller may elect either to repurchase only the affected
Cross-Collateralized
Mortgage Loan or Mortgaged Properties as to which the Material
Breach or
Material Document Defect exists or to repurchase the
aggregate
Cross-Collateralized Mortgage Loans or Mortgaged Properties. All
reasonable
costs and expenses incurred by the Purchaser or its designee
pursuant to this
paragraph shall be included in the calculation of Purchase Price
for the
Mortgage Loan(s) to be repurchased. If the
cross-collateralization of any
Cross-Collateralized Group is not or cannot be terminated as
contemplated by
this paragraph, then, for purposes of (i) determining whether
any Breach or
Document Defect, as the case may be, is a Material Breach or
Material Document
Defect, and (ii) the application of remedies, such
Cross-Collateralized Group
shall be treated as a single Mortgage Loan.
It shall be a condition to any repurchase of a Mortgage Loan by
the
Seller pursuant to Section 5(a) that (i) the Purchaser shall
have executed and
delivered such instruments of endorsement, transfer or
assignment then presented
to it by the Seller, in each case without recourse, as shall be
necessary to
vest in the Seller the legal and beneficial ownership of such
Mortgage Loan
(including any property acquired in respect thereof or proceeds
of any insurance
policy with respect thereto), to the extent that such ownership
interest was
transferred to the Purchaser hereunder; (ii) the Purchaser shall
deliver to the
Seller all portions of the Mortgage File and other documents
pertaining to such
Mortgage Loan; and (iii) the Purchaser shall release to the
Seller any escrow
payments or reserve funds held by it, or on its behalf, in
respect of such
Mortgage Loan. If any Mortgage Loan is to be repurchased as
contemplated by
Section 5(a), the Seller shall amend the Mortgage Loan Schedule
to reflect the
removal of such Mortgage Loan and shall forward such amended
schedule to the
Purchaser.
(c) The Seller hereby acknowledges and agrees that any
modification
of the Mortgage Loan pursuant to a workout, foreclosure, sale or
other
liquidation pursuant to, and in accordance with, the Pooling and
Servicing
Agreement shall not constitute a defense to any repurchase claim
disputed by the
Seller nor shall such modification change the Purchase Price due
from the Seller
for any repurchase claim. In the event of any such modification,
the Seller
hereby agrees to repurchase the Mortgage Loan as modified, if
the Seller is
required to or elects to repurchase such Mortgage Loan in
accordance with the
terms of this Section 5. Any sale of the related Mortgage Loan,
or foreclosure
upon such Mortgage Loan and sale of the successor REO Property,
shall be without
(i) recourse of any kind (either expressed or implied) by such
Person against
the Seller and (ii) representation or warranty of any kind
(either expressed or
implied) by the Seller to or for the benefit of such Person.
(d) The fact that a Material Document Defect or Material Breach
is
not discovered until after foreclosure (but in all instances
prior to the sale
of the successor REO Property or Mortgage Loan) shall not
prejudice any claim
against the Seller for repurchase of the REO Mortgage Loan or
successor REO
Property, which claim shall be made in accordance with this
Section 5. If a
court of competent jurisdiction issues a final order that the
Seller is or was
obligated to repurchase the related Mortgage Loan or the
successor REO Loan or
the Seller otherwise accepts liability, then, after the
expiration of any
applicable appeal period, but in no event later than the
termination of the
Trust pursuant to Section 9.01 of the Pooling and Servicing
Agreement, the
Seller will be obligated to pay to the Trust the difference
between (i) any
Liquidation Proceeds received upon such liquidation net of
Liquidation Expenses
and (ii) the Purchase Price; provided that the prevailing party
in such action
shall be entitled to recover from the other party all costs,
fees and expenses
(including reasonable attorneys fees) related thereto.
(e) [Reserved].
(f) It is understood and agreed that the obligations of the
Seller
set forth in Section 5(a) to cure any Material Breach or
Material Document
Defect or to repurchase such Mortgage Loan constitute the sole
remedies
available to the Purchaser with respect to any Breach or
Document Defect,
provided that for purposes of the remedies set forth in this
Section 5, the sole
recourse with respect Mortgage Loans shall be against
CWCapital.
(g) Notwithstanding the foregoing, if there exists a Breach of
that
portion of the representation or warranty on the part of the
Seller set forth
in, or made pursuant to, paragraph 38 of Exhibit B to this
Agreement,
specifically relating to whether or not the Mortgage Loan
documents or any
particular Mortgage Loan document for any Mortgage Loan requires
the related
Mortgagor to bear reasonable costs and expenses associated with
a defeasance, as
set forth in paragraph 38 (any such fees, costs or expenses,
referred to herein
as "Covered Costs"), then the Purchaser or its designee will
direct the Seller
in writing to wire transfer to the Custodial Account, within 90
days of receipt
of such direction, the amount of any such reasonable costs and
expenses incurred
by the Trust that (i) otherwise would have been required to be
paid by the
Mortgagor if such representation or warranty with respect to
such costs and
expenses had in fact been true, as set forth in the related
representation or
warranty, (ii) have not been paid by the Mortgagor, (iii) are
the basis of such
Breach and (iv) constitute "Covered Costs." Upon payment of such
costs, the
Seller shall be deemed to have cured such Breach in all
respects. Provided that
such payment is made, this paragraph describes the sole remedy
available to the
Purchaser regarding any such Breach, regardless of whether it
constitutes a
Material Breach, and the Seller shall not be obligated to
otherwise cure such
Breach or repurchase the affected Mortgage Loan under any
circumstances.
(h) For so long as the Trust Fund is subject to the
reporting
requirements of the Exchange Act, the Seller shall provide the
Purchaser (or
with respect to any Serviced Companion Loan that is deposited
into another
securitization, the depositor of such securitization) and the
Trustee with any
Additional Form 10-D Disclosure and any Additional Form 10-K
Disclosure set
forth next the Purchaser's name on Exhibit P and Exhibit Q of
the Pooling and
Servicing Agreement within the time periods set forth in the
Pooling and
Servicing Agreement.
SECTION 6. Closing. The closing of the sale of the Mortgage
Loans
(the "Closing") shall be held at the offices of Cadwalader,
Wickersham & Taft
LLP, One World Financial Center, New York, NY 10281 at 10:00
A.M., New York City
time, on the Closing Date.
The Closing shall be subject to each of the following
conditions:
(a) All of the representations and warranties of the
CWCapital
Parties set forth in or made pursuant to Sections 3(a) and 3(b)
of this
Agreement, and all of the representations and warranties of the
Purchaser set
forth in Section 4 of this Agreement, shall be true and correct
in all material
respects as of the Closing Date;
(b) Insofar as it affects the obligations of the Seller
hereunder,
the Pooling and Servicing Agreement shall be in a form mutually
acceptable to
the Purchaser and the Seller;
(c) All documents specified in Section 7 of this Agreement
(the
"Closing Documents"), in such forms as are reasonably acceptable
to the
Purchaser, shall be duly executed and delivered by all
signatories as required
pursuant to the respective terms thereof;
(d) The Seller shall have delivered and released to the Trustee
(or
a Custodian on its behalf), the Master Servicer and the Special
Servicer all
documents and funds required to be delivered to the Trustee, the
Master Servicer
and the Special Servicer, respectively, pursuant to Section 2 of
this Agreement;
(e) All other terms and conditions of this Agreement required to
be
complied with on or before the Closing Date shall have been
complied with in all
material respects, and the CWCapital Parties shall have the
ability to comply
with all terms and conditions and perform all duties and
obligations required to
be complied with or performed after the Closing Date;
(f) The Seller shall have paid all fees and expenses payable by
it
to the Purchaser or otherwise pursuant to this Agreement;
and
(g) Neither the Underwriting Agreement nor the Certificate
Purchase
Agreement shall have been terminated in accordance with its
terms.
Both parties agree to use their best efforts to perform
their
respective obligations hereunder in a manner that will enable
the Purchaser to
purchase the Mortgage Loans on the Closing Date.
SECTION 7. Closing Documents. The Closing Documents shall
consist of
the following:
(a) This Agreement duly executed by the Purchaser and the
CWCapital
Parties;
(b) The Pooling and Servicing Agreement duly executed by the
parties
thereto;
(c) The Indemnification Agreement duly executed by the
parties
thereto;
(d) A Certificate of CWCapital, executed by a duly
authorized
officer of CWCapital and dated the Closing Date, and upon which
the Purchaser,
the Underwriters and the Initial Purchasers may rely, to the
effect that
CWCapital has, in all material respects, complied with all the
agreements and
satisfied all the conditions on its part that are required under
this Agreement
to be performed or satisfied at or prior to the Closing
Date;
(e) An Officer's Certificate from an officer of CWCapital, dated
the
Closing Date, and upon which the Purchaser, the Underwriters and
the Initial
Purchasers may rely, to the effect that each individual who, as
an officer or
representative of CWCapital, signed this Agreement, the
Indemnification
Agreement or any other document or certificate delivered on or
before the
Closing Date in connection with the transactions contemplated
herein or in the
Indemnification Agreement, 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 or certificates are their genuine
signatures, or
such other statement relating to incumbency that is acceptable
to the Purchaser,
the Underwriters and the Initial Purchasers;
(f) As certified by an officer of the applicable CWCapital
Party,
true and correct copies of (i) the organizational documents of
each CWCapital
Party and (ii) certificates of good standing of (A) CWCapital
Securities I and
CWCapital Securities VI each issued by the Secretary of State of
the State of
Delaware and (B) CWCapital issued by the Secretary of State of
the State of
Massachusetts, each as of a recent date;
(g) A favorable opinion of counsel to CWCapital, subject to
customary exceptions and carveouts, dated the Closing Date and
addressed to the
Purchaser, the Underwriters, the Initial Purchasers, the Rating
Agencies and,
upon request, the other parties to the Pooling and Servicing
Agreement, together
with such other opinions of such counsel as may be required by
the Rating
Agencies in connection with the transactions contemplated
hereby;
(h) A favorable opinion of in-house counsel to CWCapital,
subject to
customary exceptions and carveouts, dated the Closing Date and
addressed to the
Purchaser, the Underwriters, the Initial Purchasers, the Rating
Agencies and,
upon request, the other parties to the Pooling and Servicing
Agreement;
(i) A letter of counsel of CWCapital, subject to customary
exceptions and carveouts, dated the Closing Date and addressed
to the
Underwriters, to the effect that nothing has come to such
counsel's attention
that would lead such counsel to believe that the Prospectus
Supplement as of the
date thereof or as of the Closing Date contains, with respect to
CWCapital or
the Mortgage Loans, any untrue statement of a material fact or
omits to state a
material fact necessary in order to make the statements therein
relating to
CWCapital or the Mortgage Loans, in the light of the
circumstances under which
they were made, not misleading; and
(j) Such further certificates, opinions and documents as the
Purchaser may reasonably request.
SECTION 8. Costs. The reasonable out-of-pocket costs and
expenses
incurred by the Seller, each other mortgage loan seller, the
Purchaser, the
Underwriters and the Initial Purchasers in connection with the
securitization of
the Mortgage Loans and the other transactions contemplated by
this Agreement,
the Underwriting Agreement and the Certificate Purchase
Agreement shall be
payable as set forth in a separate writing among such parties on
the Closing
Date.
SECTION 9. Grant of a Security Interest. The parties hereto
agree
that it is their express intent that the conveyance of the
Mortgage Loans by the
Seller to the Purchaser as provided in Section 2 hereof be, and
be construed as,
a sale of the Mortgage Loans by the Seller to the Purchaser and
not as a pledge
of the Mortgage Loans by the Seller to the Purchaser to secure a
debt or other
obligation of the Seller. However, if, notwithstanding the
aforementioned intent
of the parties, the Mortgage Loans are held to be property of
the Seller, then
it is the express intent of the parties that: (i) such
conveyance shall be
deemed to be a pledge of the Mortgage Loans by the Seller to the
Purchaser to
secure a debt or other obligation of the Seller; (ii) this
Agreement shall be
deemed to be a security agreement within the meaning of Articles
8 and 9 of the
applicable Uniform Commercial Code; (iii) the conveyance
provided for in Section
2 hereof shall be deemed to be a grant by the Seller to the
Purchaser of a
security interest in all of the Seller's right, title and
interest in and to the
Mortgage Loans, and all amounts payable to the holder of the
Mortgage Loans in
accordance with the terms thereof, and all proceeds of the
conversion, voluntary
or involuntary, of the foregoing into cash, instruments,
securities or other
property; (iv) the assignment to the Trustee of the interest of
the Purchaser in
and to the Mortgage Loans shall be deemed to be an assignment of
any security
interest created hereunder; (v) the possession by the Trustee or
any of its
agents, including, without limitation, the Custodian, of the
Mortgage Notes for
the Mortgage Loans, and such other items of property as
constitute instruments,
money, negotiable documents or chattel paper shall be deemed to
be "possession
by the secured party" for purposes of perfecting the security
interest pursuant
to Section 9-313 of the applicable Uniform Commercial Code; and
(vi)
notifications to persons (other than the Trustee) holding such
property, and
acknowledgments, receipts or confirmations from such persons
holding such
property, shall be deemed notifications to, or acknowledgments,
receipts or
confirmations from, financial intermediaries, bailees or agents
(as applicable)
of the secured party for the purpose of perfecting such security
interest under
applicable law. The Seller and the Purchaser shall, to the
extent consistent
with this Agreement, take such actions as may be necessary to
ensure that, if
this Agreement were deemed to create a security interest in the
Mortgage Loans,
such security interest would be deemed to be a perfected
security interest of
first priority under applicable law and will be maintained as
such throughout
the term of this Agreement and the Pooling and Servicing
Agreement.
SECTION 10. Notices. All notices, copies, requests,
consents,
demands and other communications required hereunder shall be in
writing and
telecopied or delivered to the intended recipient at the
"Address for Notices"
specified beneath its name on the signature pages hereof or, as
to either party,
at such other address as shall be designated by such party in a
notice hereunder
to the other party. Except as otherwise provided in this
Agreement, all such
communications shall be deemed to have been duly given when
transmitted by
telecopier or personally delivered or, in the case of a mailed
notice, upon
receipt, in each case given or addressed as aforesaid.
SECTION 11. Representations, Warranties and Agreements to
Survive
Delivery. All representations, warranties and agreements
contained in this
Agreement, incorporated herein by reference or contained in the
certificates of
officers of the CWCapital Parties submitted pursuant hereto,
shall remain
operative and in full force and effect and shall survive
delivery of the
Mortgage Loans by the Seller to the Purchaser (and by the
Purchaser to the
Trustee) until the termination of the Pooling and Servicing
Agreement pursuant
to the terms thereof.
SECTION 12. Severability of Provisions. Any part, provision,
representation, warranty or covenant of this Agreement that is
prohibited or
which is held to be void or unenforceable shall be ineffective
to the extent of
such prohibition or unenforceability without invalidating the
remaining
provisions hereof. Any part, provision, representation, warranty
or covenant of
this Agreement that is prohibited or unenforceable or is held to
be void or
unenforceable in any particular jurisdiction shall, as to such
jurisdiction, be
ineffective to the extent of such prohibition or
unenforceability without
invalidating the remaining provisions hereof, and any such
prohibition or
unenforceability in any particular jurisdiction shall not
invalidate or render
unenforceable such provision in any other jurisdiction. To the
extent permitted
by applicable law, the parties hereto waive any provision of law
which prohibits
or renders void or unenforceable any provision hereof.
SECTION 13. Counterparts. This Agreement may be executed in
any
number of counterparts, each of which shall be an original, but
which together
shall constitute one and the same agreement.
SECTION 14. GOVERNING LAW; CONSENT TO JURISDICTION. THIS
AGREEMENT
WILL BE GOVERNED BY AND CONSTRUED IN ACCORDANCE WITH THE LAWS OF
THE STATE OF
NEW YORK, APPLICABLE TO AGREEMENTS NEGOTIATED, MADE AND TO BE
PERFORMED ENTIRELY
IN SAID STATE. TO THE FULLEST EXTENT PERMITTED UNDER APPLICABLE
LAW, THE SELLER
AND THE PURCHASER EACH HEREBY IRREVOCABLY (I) SUBMITS TO THE
JURISDICTION OF ANY
NEW YORK STATE AND FEDERAL COURTS SITTING IN NEW YORK CITY WITH
RESPECT TO
MATTERS ARISING OUT OF OR RELATING TO THIS AGREEMENT; (II)
AGREES THAT ALL
CLAIMS WITH RESPECT TO SUCH ACTION OR PROCEEDING MAY BE HEARD
AND DETERMINED IN
SUCH NEW YORK STATE OR FEDERAL COURTS; (III) WAIVES, TO THE
FULLEST POSSIBLE
EXTENT, THE DEFENSE OF AN INCONVENIENT FORUM; AND (IV) AGREES
THAT A FINAL
JUDGMENT IN ANY SUCH ACTION OR PROCEEDING SHALL BE CONCLUSIVE
AND MAY BE
ENFORCED IN OTHER JURISDICTIONS BY SUIT ON THE JUDGMENT OR IN
ANY OTHER MANNER
PROVIDED BY LAW.
SECTION 15. Further Assurances. The Seller and the Purchaser
agree
to execute and deliver such instruments and take such further
actions as the
other party may, from time to time, reasonably request in order
to effectuate
the purposes and to carry out the terms of this Agreement.
SECTION 16. Successors and Assigns. The rights and obligations
of
the CWCapital Parties under this Agreement shall not be assigned
by the
CWCapital Parties without the prior written consent of the
Purchaser, except
that any person into which one of the CWCapital Parties may be
merged or
consolidated, or any corporation resulting from any merger,
conversion or
consolidation to which one of the CWCapital Parties is a party,
or any person
succeeding to all or substantially all of the business of the
CWCapital Parties,
shall be the successor one of the CWCapital Parties hereunder.
The Purchaser has
the right to assign its interest under this Agreement, in whole
or in part, as
may be required to effect the purposes of the Pooling and
Servicing Agreement,
and the assignee shall, to the extent of such assignment,
succeed to the rights
and obligations hereunder of the Purchaser. Subject to the
foregoing, this
Agreement shall bind and inure to the benefit of and be
enforceable by the
CWCapital Parties, the Purchaser, and their respective
successors and permitted
assigns.
SECTION 17. Amendments. No term or provision of this Agreement
may
be waived or modified unless such waiver or modification is in
writing and
signed by a duly authorized officer of the party against whom
such waiver or
modification is sought to be enforced. The CWCapital Parties'
obligations
hereunder shall in no way be expanded, changed or otherwise
affected by any
amendment of or modification to the Pooling and Servicing
Agreement, unless the
CWCapital Parties have consented to such amendment or
modification in writing.
<PAGE>
IN WITNESS WHEREOF, the Seller and the Purchaser have caused
their
names to be signed hereto by their respective duly authorized
officers as of the
date first above written.
ADDITIONAL PARTY
CWCAPITAL LLC
By: /s/ Paul A. Sherrington
--------------------------------
Name: Paul A. Sherrington
Title: Senior Vice President
Assistant General Counsel
SELLER
CWCAPITAL MORTGAGE SECURITIES I LLC
By: /s/ Paul A. Sherrington
--------------------------------
Name: Paul A. Sherrington
Title: Senior Vice President
Assistant General Counsel
CWCAPITAL MORTGAGE SECURITIES VI LLC
By: /s/ Paul A. Sherrington
--------------------------------
Name: Paul A. Sherrington
Title: Senior Vice President
Assistant General Counsel
PURCHASER
CWCAPITAL COMMERCIAL FUNDING CORP.
By: /s/ Robert Restrick
-------------------------------
Name: Robert Restrick
Title: Senior Managing Director
<PAGE>
SCHEDULE A
Notices
Additional Party:
-----------------
Address for Notices:
1540 Broadway
23rd Floor
New York, NY 10036
Attention: Paul A. Sherrington
Seller:
-------
1540 Broadway
23rd Floor
New York, NY 10036
Attention: Paul A. Sherrington
Purchaser:
----------
One Charles River Place
63 Kendrick Street
Needham, MA 02494
Attention: Craig Lieberman
<PAGE>
EXHIBIT A
Mortgage Loan Schedule
<PAGE>
COBALT CMBS COMMERCIAL MORTGAGE TRUST 2007-C3
EXHIBIT A
CWCAPITAL
<TABLE>
<CAPTION>
Mortgage
Loan Number Property Name Address
----------- -----------------------------------------
---------------------------------------------
<S> <C> <C>
7 Tradewinds Hospitality Portfolio Various
7.01 Tradewinds Island Grand Resort 5500 Gulf Boulevard
7.02 Tradewinds Breckenridge Resort 5700 Gulf Boulevard
7.03 Tradewinds Sandpiper
|