MORTGAGE LOAN PURCHASE AND SALE AGREEMENT
This Mortgage Loan Purchase and Sale Agreement (this "Agreement"),
is
dated and effective as of September 13, 2006, between Bear Stearns
Commercial
Mortgage, Inc. ("BSCMI"), as seller (in such capacity, together
with its
successors and permitted assigns hereunder, the "Mortgage Loan
Seller"), and
Bear Stearns Commercial Mortgage Securities Inc. ("BSCMSI"), as
purchaser (in
such capacity, together with its successors and permitted assigns
hereunder, the
"Purchaser").
RECITALS
BSCMI desires to sell, assign, transfer, set over and otherwise
convey
to BSCMSI, without recourse, representation or warranty, other than
as set forth
herein, and BSCMSI desires to purchase, subject to the terms and
conditions set
forth herein, the multifamily and commercial mortgage loans
(collectively, the
"Mortgage Loans") identified on the schedule annexed hereto as
Exhibit A (the
"Mortgage Loan Schedule"), as such schedule may be amended from
time to time
pursuant to the terms hereof.
BSCMSI intends to create a trust (the "Trust"), the primary assets
of
which will be a segregated pool of multifamily and commercial
mortgage loans
that includes the Mortgage Loans and certain other commercial and
multifamily
mortgage loans (collectively, the "Trust Mortgage Loans").
Beneficial ownership
of the assets of the Trust (such assets collectively, the "Trust
Fund") will be
evidenced by a series of mortgage pass-through certificates (the
"Certificates"). Certain classes of the Certificates will be rated
by Fitch,
Inc. and Standard & Poor's, a division of The McGraw Hill
Companies, Inc.
(together, the "Rating Agencies"). Certain classes of the
Certificates (the
"Registered Certificates") will be registered under the Securities
Act of 1933,
as amended (the "Securities Act"). The Trust will be created and
the
Certificates will be issued pursuant to a pooling and servicing
agreement to be
dated as of September 1, 2006 (the "Pooling and Servicing
Agreement"), among
BSCMSI, as depositor (in such capacity, the "Depositor"),
Prudential Asset
Resources, Inc., as a master servicer (in such capacity, a "Master
Servicer"),
Wells Fargo Bank, National Association, as a master servicer (in
such capacity,
a "Master Servicer"), as certificate administrator (in such
capacity, the
"Certificate Administrator") and as tax administrator (in such
capacity, the
"Tax Administrator"), LNR Partners, Inc., as a special servicer (a
"Special
Servicer"), and LaSalle Bank National Association, as trustee (the
"Trustee").
Capitalized terms used but not otherwise defined herein shall have
the
respective meanings assigned to them in the Pooling and Servicing
Agreement as
in full force and effect on the Closing Date (as defined in Section
1 hereof).
It is anticipated that BSCMSI will transfer the Mortgage Loans to
the Trust
contemporaneously with its purchase of the Mortgage Loans
hereunder.
BSCMSI intends to sell the Registered Certificates to Bear, Stearns
&
Co. Inc. ("BSC") and Morgan Stanley & Co. Incorporated ("Morgan
Stanley"; and
together with BSC in such capacity, the "Underwriters"), pursuant
to an
underwriting agreement, dated the date hereof (the "Underwriting
Agreement"),
among BSCMSI and the Underwriters; and BSCMSI intends to sell the
remaining
Certificates (the "Non-Registered Certificates") to BSC and Morgan
Stanley
(together in such capacities, the "Initial Purchasers") pursuant to
a
certificate purchase agreement, dated the date hereof (the
"Certificate Purchase
Agreement"), among BSCMSI and
the Initial Purchasers. The Registered Certificates are more fully
described in
the prospectus dated September 13, 2006 (the "Base Prospectus"),
and the
supplement to the Base Prospectus dated September 13, 2006 (the
"Prospectus
Supplement"; and, together with the Base Prospectus, the
"Prospectus"), as each
may be amended or supplemented at any time hereafter. The
Non-Registered
Certificates are more fully described in the private placement
memorandum dated
the date hereof (the "Memorandum"), as it may be amended or
supplemented at any
time hereafter.
BSCMI will indemnify the Depositor, the Underwriters, the Initial
Purchasers and certain related parties with respect to the
disclosure regarding
the Mortgage Loans that is contained in the Prospectus, the
Memorandum and
certain other disclosure documents and offering materials relating
to the
Certificates, pursuant to an indemnification agreement, dated as of
the date
hereof (the "Indemnification Agreement"), among the Depositor, the
Underwriters
and the Initial Purchasers.
As used herein, "Regulation AB" means Subpart 229.1100 - Asset
Backed
Securities (Regulation AB), 17 C.F.R. Sections 229.1100-229.1123,
as such may be
amended from time to time, and subject to such clarification and
interpretation
as have been provided by the Commission in the adopting release
(Asset-Backed
Securities, Securities Act Release No. 33-8518, 70 Fed. Reg.
1,506-1,631
(January 7, 2005)) or by the staff of the Commission, or as may be
provided by
the Commission or its staff from time to time.
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 Mortgage Loan Seller agrees
to
sell, assign, transfer, set over and otherwise convey to the
Purchaser, without
recourse, representation or warranty, other than as set forth
herein, and the
Purchaser agrees to purchase from the Mortgage Loan Seller, subject
to the terms
and conditions set forth herein, the Mortgage Loans. The purchase
and sale of
the Mortgage Loans shall take place on September 27, 2006 or such
other date as
shall be mutually acceptable to the parties hereto (the "Closing
Date"). As of
the Cut-off Date, the Mortgage Loans will have an aggregate
principal balance,
after application of all payments of principal due on the Mortgage
Loans on or
before such date, whether or not received, of $1,110,505,270,
subject to a
variance of plus or minus 5%. The purchase price for the Mortgage
Loans shall be
$1,140,174,779, which purchase price excludes accrued interest and
applicable
deal expenses. The Purchaser shall pay such purchase price, plus
interest
accrued on the Mortgage Loans from the Cut-off Date to the Closing
Date and any
applicable deal expenses, to the Mortgage Loan Seller on the
Closing Date by
wire transfer in immediately available funds or by such other
method as shall be
mutually acceptable to the parties hereto.
SECTION 2. Conveyance of the Mortgage Loans.
(a) Effective as of the Closing Date, subject only to receipt of
the
purchase price referred to in Section 1 hereof and the other
conditions to the
Mortgage Loan Seller's obligations set forth herein, the Mortgage
Loan Seller
does hereby sell, assign, transfer, set over and otherwise convey
to the
Purchaser, without recourse, representation or warranty, other than
as set forth
herein, all of the right, title and interest of the Mortgage Loan
Seller in, to
and under
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the Mortgage Loans and all documents included in the related
Mortgage Files and
Servicing Files. Such assignment includes all scheduled payments of
principal
and interest under and proceeds of the Mortgage Loans received
after their
respective Cut-off Dates (other than scheduled payments of interest
and
principal due on or before their respective Cut-off Dates, which
shall belong
and be promptly remitted to the Mortgage Loan Seller) together with
all
documents delivered or caused to be delivered hereunder with
respect to such
Mortgage Loans by the Mortgage Loan Seller (including all documents
included in
the related Mortgage Files and Servicing Files and any related
Additional
Collateral). The Purchaser shall be entitled to receive all
scheduled payments
of principal and interest due on the Mortgage Loans after their
respective
Cut-off Dates, and all other recoveries of principal and interest
collected
thereon after their respective Cut-off Dates (other than scheduled
payments of
principal and interest due on the Mortgage Loans on or before their
respective
Cut-off Dates and collected after such respective Cut-off Dates,
which shall
belong to the Mortgage Loan Seller). In no event, however, shall
such conveyance
and assignment constitute or be construed as an assumption by the
Purchaser of,
in the case of any Mortgage Loan that is part of a Mortgage Loan
Group, any
obligation or liability that is imposed only on the initial holder
of such
Mortgage Loan under the terms of the related Mortgage Loan Group
Intercreditor
Agreement.
After the Mortgage Loan Seller's transfer of the Mortgage Loans to
the
Purchaser, as provided herein, the Mortgage Loan 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 Mortgage Loan Seller is expressly permitted to complete
subsequent to the
Closing Date, the Mortgage Loan 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 Mortgage Loan Seller to the Purchaser.
(b) The conveyance of the Mortgage Loans and the related rights and
property accomplished hereby is intended by the parties hereto to
constitute a
sale by the Mortgage Loan Seller of all the Mortgage Loan Seller's
right, title
and interest in and to such Mortgage Loans and such other related
rights and
property by the Mortgage Loan Seller to the Purchaser. Furthermore,
it is not
intended that such conveyance be a pledge of security for a loan.
If such
conveyance is determined to be a pledge of security for a loan,
however, then:
(i) this Agreement shall constitute a security agreement under
applicable law;
(ii) the Mortgage Loan Seller shall be deemed to have granted to
the Purchaser a
first priority security interest in all of the Mortgage Loan
Seller's right,
title and interest in and to the Mortgage Loans and all amounts
payable to the
holder(s) of the Mortgage Loans in accordance with the terms
thereof (other than
scheduled payments of interest and principal due and payable on
such Mortgage
Loans on or prior to their respective Cut-Off Dates or, in the case
of a
Replacement Pooled Mortgage Loan, on or prior to the related date
of
substitution); (iii) the assignment by BSCMSI to the Trustee of its
interests in
the Mortgage Loans as contemplated by Section 15 hereof shall be
deemed to be an
assignment of any security interest created hereunder; (iv) the
possession by
the Purchaser (or the Trustee or its agent) of the Mortgage Notes
with respect
to the Mortgage Loans subject hereto from time to time 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" or
possession by a
purchaser or person designated by such secured party for the
purpose of
perfecting such security interest under applicable law; and (v)
notifications
to, and acknowledgments, receipts or
3
confirmations from, Persons holding such property, shall be deemed
to be
notifications to, or acknowledgments, receipts or confirmations
from, securities
intermediaries, bailees or agents (as applicable) of the Purchaser
for the
purpose of perfecting such security interest under applicable law.
The Mortgage
Loan Seller and the Purchaser shall, to the extent consistent with
this
Agreement, take such actions as may be reasonably necessary to
ensure that, if
this Agreement were deemed to create a security interest in the
Mortgage Loans,
such security interest would 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.
(c) In connection with the Mortgage Loan Seller's assignment
pursuant
to Section 2(a) above, the Mortgage Loan Seller, at its expense,
shall deliver
to and deposit with, or cause to be delivered to and deposited
with, the Trustee
or a Custodian appointed thereby, on or before the Closing Date,
the Mortgage
Note for each Mortgage Loan so assigned, endorsed to the Trustee as
specified in
clause (i) of the definition of "Mortgage File", and on or before
the date that
is 45 days following the Closing Date, the remainder of the
Mortgage File for
each Mortgage Loan and any Additional Collateral (other than
original Letters of
Credit and Reserve Funds, which shall be transferred to the Trustee
or to the
applicable Master Servicer) for each Mortgage Loan. Notwithstanding
the
preceding sentence, if the Mortgage Loan Seller cannot so deliver,
or cause to
be delivered, as to any Mortgage Loan (exclusive of any Mortgage
Loan that
constitutes a Non-Trust-Serviced Pooled Mortgage Loan), the
original or a copy
of any of the documents and/or instruments referred to in clauses
(ii), (iii),
(vii) and (ix)(A) of the definition of "Mortgage File", with
evidence of
recording or filing (if applicable, and as the case may be)
thereon, solely
because of a delay caused by the public recording or filing office
where such
document or instrument has been delivered for recordation or
filing, as the case
may be, then (subject to the obligation of the Mortgage Loan Seller
to
nonetheless (1) from time to time make or cause to be made
reasonably diligent
efforts to obtain such document or instrument (with such evidence)
if it is not
returned within a reasonable period after the date when it was
transmitted for
recording and (2) deliver such document or instrument to the
Trustee or a
Custodian appointed thereby (if such document or instrument is not
otherwise
returned to the
4
Trustee or such Custodian) promptly upon the Mortgage Loan Seller's
receipt
thereof), so long as a copy of such document or instrument,
certified by the
Mortgage Loan Seller or title agent as being a copy of the document
deposited
for recording or filing and (in the case of such clause (ii))
accompanied by an
Officer's Certificate of the Mortgage Loan Seller or a statement
from the title
agent to the effect that such original Mortgage has been sent to
the appropriate
public recording official for recordation, has been delivered to
the Trustee on
or before the date that is 45 days following the Closing Date, the
delivery
requirements of this subsection shall be deemed to have been
satisfied as to
such missing item, and such missing item shall be deemed to have
been included
in the related Mortgage File, and if the Mortgage Loan Seller
cannot or does not
so deliver, or cause to be delivered, as to any Mortgage Loan
(exclusive of any
Mortgage Loan that constitutes a Non-Trust-Serviced Pooled Mortgage
Loan), the
original of any of the documents and/or instruments referred to in
clauses (iv)
and (ix)(B) of the definition of "Mortgage File", because such
document or
instrument has been delivered for recording or filing, as the case
may be, then
(subject to the obligation of the Mortgage Loan Seller to
nonetheless (1) from
time to time make or cause to be made reasonably diligent efforts
to obtain such
document or instrument (with such evidence) if it is not returned
within a
reasonable period after the date when it was transmitted for
recording and (2)
deliver such document or instrument to the Trustee or a Custodian
appointed
thereby (if such document or instrument is not otherwise returned
to the Trustee
or such Custodian) promptly upon the Mortgage Loan Seller's receipt
thereof), so
long as a copy of such document or instrument, certified by the
Mortgage Loan
Seller, a title agent or a recording or filing agent as being a
copy of the
document deposited for recording or filing and accompanied by an
Officer's
Certificate of the Mortgage Loan Seller or a statement from the
title agent that
such document or instrument has been sent to the appropriate public
recording
official for recordation (except that such certification shall not
be required
if the Trustee is responsible for recordation of such document or
instrument
under the Pooling and Servicing Agreement and the Mortgage Loan
Seller has
delivered the original unrecorded document or instrument to the
Trustee on or
before the date that is 45 days following the Closing Date), has
been delivered
to the Trustee on or before the date that is 45 days following the
Closing Date,
the delivery requirements of this subsection shall be deemed to
have been
satisfied as to such missing item, and such missing item shall be
deemed to have
been included in the related Mortgage File. In addition, with
respect to each
Mortgage Loan (exclusive of any Mortgage Loan that constitutes a
Non-Trust-Serviced Pooled Mortgage Loan) under which any Additional
Collateral
is in the form of a Letter of Credit as of the Closing Date, the
Mortgage Loan
Seller shall cause to be prepared, executed and delivered to the
issuer of each
such Letter of Credit such notices, assignments and acknowledgments
as are
required under such Letter of Credit to assign, without recourse,
to the Trustee
the Mortgage Loan Seller's rights as the beneficiary thereof and
drawing party
thereunder. Furthermore, with respect to each Mortgage Loan, if
any, as to which
there exists a secured creditor impaired property insurance policy
or pollution
limited liability environmental impairment policy covering the
related Mortgaged
Property, the Mortgage Loan Seller shall cause such policy, within
a reasonable
period following the Closing Date, to inure to the benefit of the
Trustee for
the benefit of the Certificateholders (if and to the extent that it
does not by
its terms automatically inure to the holder of such Mortgage Loan).
For purposes
of this paragraph, the relevant definition of "Mortgage File" shall
be the
definition of such term set forth in the Pooling and Servicing
Agreement as in
full force and effect on the Closing Date.
(d) As soon as reasonably possible, and in any event within 45 days
after the later of (i) the Closing Date (or in the case of a
Replacement Pooled
Mortgage Loan substituted as contemplated by Section 2.03 of the
Pooling and
Servicing Agreement, after the related date of substitution) and
(ii) the date
on which all recording information necessary to complete the
subject document is
received by the Mortgage Loan Seller, the Mortgage Loan Seller
shall complete
(to the extent necessary), and shall submit for recording or
filing, as the case
may be, including via electronic means, if appropriate, in or with
the
appropriate office for real property records or UCC Financing
Statements, as
applicable, each assignment of Mortgage and assignment of
Assignment of Leases
(except, in each case, with respect to any Mortgage or Assignment
of Leases that
has been recorded in the name of MERS or its designee) in favor of
the Trustee
referred to in clause (iv) of the definition of "Mortgage File" in
the Pooling
and Servicing Agreement and each assignment of UCC Financing
Statement (except
with respect to any UCC Financing Statement that has been recorded
in the name
of MERS or its designee) in favor of the Trustee referred to in
clause (ix)(B)
of the definition of "Mortgage File" in the Pooling and Servicing
Agreement.
Each such assignment shall reflect that it should be returned by
the public
recording office to the Trustee or Mortgage Loan Seller's designee
following
recording, and each such assignment of UCC Financing Statement
shall reflect
that the file copy thereof or an appropriate receipt therefor, as
applicable,
should be returned to the Trustee or Mortgage Loan Seller's
designee following
filing; provided that in those instances where the public recording
office
retains the original assignment of Mortgage or assignment of
Assignment
5
of Leases the Trustee shall obtain therefrom a copy of the recorded
original. If
the Mortgage Loan Seller's designee has been appointed to receive
such
assignment or such UCC Financing Statement following filing with
the public
recording office, the Mortgage Loan Seller's designee shall, within
a reasonable
time period, deliver such assignment or such UCC Financing
Statement to the
Trustee. If the Mortgage Loan Seller receives written notice that
any assignment
or other instrument of transfer with respect to the Mortgage Loans
is lost or
returned unrecorded or unfiled, as the case may be, because of a
defect therein,
the Mortgage Loan Seller shall prepare or cause the preparation of
a substitute
therefor or cure such defect, as the case may be. The Mortgage Loan
Seller shall
be responsible for all reasonable out-of-pocket costs and expenses
associated
with recording and/or filing any and all assignments and other
instruments of
transfer with respect to the Mortgage Loans that are required to be
recorded or
filed, as the case may be, under the Pooling and Servicing
Agreement; provided
that the Mortgage Loan Seller shall not be responsible for actually
recording or
filing any such assignments or other instruments of transfer or for
costs and
expenses that the related Borrowers have agreed to pay.
(e) In connection with the Mortgage Loan Seller's assignment
pursuant
to Section 2(a) above, the Mortgage Loan Seller, at its expense,
shall deliver
to and deposit with, or cause to be delivered to and deposited
with, the
applicable Master Servicer, on or before the date that is 45 days
after the
Closing Date, in the case of the items in clause (i) below, and 20
days after
the Closing Date, in the case of the items in clause (ii) below,
the following
items (except to the extent that any of the following items are to
be retained
by a Primary Servicer or Sub-Servicer that will continue to act on
behalf of the
applicable Master Servicer as contemplated by the Pooling and
Servicing
Agreement and a Primary Servicing Agreement or Sub-Servicing
Agreement and
except to the extent that any of the following items relate to any
Mortgage Loan
that constitutes a Non-Trust-Serviced Pooled Mortgage Loan): (i)
originals or
copies of all financial statements, appraisals,
environmental/engineering
reports, transaction screens, seismic assessment reports, leases,
rent rolls,
insurance policies and certificates, major space leases, legal
opinions and
tenant estoppels and any other relevant documents relating to the
origination
and servicing of any Mortgage Loan that are reasonably necessary
for the ongoing
administration and/or servicing of the applicable Mortgage Loan in
the
possession or under the control of the Mortgage Loan Seller that
relate to the
Mortgage Loans transferred by it to the Purchaser and, to the
extent that any
original documents are not required to be a part of a Mortgage File
for any such
Mortgage Loan, originals or copies of all documents, certificates
and opinions
in the possession or under the control of the Mortgage Loan Seller
that were
delivered by or on behalf of the related Borrowers in connection
with the
origination of such Mortgage Loans (provided that the Mortgage Loan
Seller shall
not be required to deliver any attorney-client privileged
communication, draft
documents or any documents or materials prepared by it or its
Affiliates for
internal uses, including without limitation, credit committee
briefs or
memoranda and other internal approval documents); and (ii) all
unapplied Reserve
Funds and Escrow Payments in the possession or under the control of
the Mortgage
Loan Seller that relate to the Mortgage Loans.
(f) Under generally accepted accounting principles ("GAAP") and for
federal income tax purposes, the Mortgage Loan Seller shall report
its transfer
of the Mortgage Loans 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. In connection with the foregoing, the Mortgage
Loan Seller
shall cause all of its records to reflect such transfer as a sale
(as opposed to
6
a secured loan) and to reflect that the Mortgage Loans are no
longer property of
the Mortgage Loan Seller.
(g) The Mortgage Loan Schedule, as it may be amended from time to
time, shall conform to the requirements set forth in the Pooling
and Servicing
Agreement. The Mortgage Loan Seller shall, within 15 days of its
discovery or
receipt of notice of any error on the Mortgage Loan Schedule, amend
such
Mortgage Loan Schedule and deliver to the Purchaser or the Trustee,
as the case
may be, an amended Mortgage Loan Schedule; provided that this
sentence shall not
be construed to relieve the Mortgage Loan Seller of any liability
for any
related Breach.
SECTION 3. Examination of Mortgage Loan Files and Due Diligence
Review. The Mortgage Loan Seller shall reasonably cooperate with
any examination
of the Mortgage Files for, and any other documents and records
relating to, the
Mortgage Loans, that may be undertaken by or on behalf of the
Purchaser on or
before the Closing Date. The fact that the Purchaser has conducted
or has failed
to conduct any partial or complete examination of any of the
Mortgage Files for,
and/or any of such other documents and records relating to, the
Mortgage Loans,
shall not affect the Purchaser's right to pursue any remedy
available in equity
or at law for a breach of the Mortgage Loan Seller's
representations and
warranties made pursuant to Section 4, except as expressly set
forth in Section
5.
SECTION 4. Representations, Warranties and Covenants of the
Mortgage
Loan Seller and the Purchaser.
(a) The Mortgage Loan Seller hereby makes, as of the Closing Date
(and, in connection with any replacement of a Defective Mortgage
Loan (as
defined in Section 4(d) hereof) with one or more Replacement
Mortgage Loans
(also as defined in Section 4(d) hereof), pursuant to Section 5(a)
hereof, as of
the related date of substitution), to and for the benefit of the
Purchaser, each
of the representations and warranties set forth in Exhibit B-1. The
Purchaser
hereby makes, as of the Closing Date, to and for the benefit of the
Mortgage
Loan Seller, each of the representations and warranties set forth
in Exhibit
B-2.
(b) The Mortgage Loan Seller hereby makes, as of the Closing Date
(or
as of such other date specifically provided in the particular
representation or
warranty), to and for the benefit of the Purchaser, each of the
representations
and warranties set forth in Exhibit C.
(c) The Mortgage Loan Seller hereby represents and warrants, as of
the
Closing Date, to and for the benefit of BSCMSI only, that the
Mortgage Loan
Seller has not dealt with any broker, investment banker, agent or
other person
(other than the Depositor, the Underwriters and the Initial
Purchasers) who may
be entitled to any commission or compensation in connection with
the sale to the
Purchaser of the Mortgage Loans.
(d) The Mortgage Loan Seller hereby represents and warrants that,
with
respect to the Mortgage Loans and the Mortgage Loan Seller's role
as
"originator" (or the role of any third party as "originator" of any
Mortgage
Loan for which the Mortgage Loan Seller was not the originator) and
"sponsor" in
connection with the issuance of the Registered Certificates, the
information
regarding the Mortgage Loans, the related Borrowers, the related
Mortgaged
7
Properties and/or the Mortgage Loan Seller contained in the
Prospectus
Supplement complies in all material respects with the applicable
disclosure
requirements of Regulation AB.
(e) For so long as the Trust is subject to the reporting
requirements
of the Exchange Act, the Mortgage Loan Seller hereby agrees to
provide the
Purchaser (or with respect to any Serviced Non-Pooled Pari Passu
Companion Loan
that is deposited into an Other Securitization, the depositor in
such Other
Securitization) and the Certificate Administrator with any
Additional Form 10-D
Disclosure and any Additional Form 10-K Disclosure opposite which
"Pooled
Mortgage Loan Seller" is set forth on Schedule IX and Schedule X to
the Pooling
and Servicing Agreement within the time periods and in accordance
with the
provisions set forth in the Pooling and Servicing Agreement.
(f) The Mortgage Loan Seller hereby agrees that it shall be deemed
to
make to and for the benefit of the Purchaser, as of the date of
substitution,
with respect to any replacement mortgage loan (a "Replacement
Mortgage Loan")
that is substituted for a Defective Mortgage Loan, by the Mortgage
Loan Seller
pursuant to Section 5(a) of this Agreement, each of the
representations and
warranties set forth in Exhibit C to this Agreement. From and after
the date of
substitution, each Replacement Mortgage Loan, if any, shall be
deemed to
constitute a "Mortgage Loan" hereunder for all purposes. A
"Defective Mortgage
Loan" is any Mortgage Loan as to which there is an unremedied
Material Breach or
Material Document Defect.
(g) It is understood and agreed that the representations and
warranties set forth in or made pursuant to this Section 4 shall
survive
delivery of the respective Mortgage Files to the Purchaser or its
designee and
shall inure to the benefit of the Purchaser, notwithstanding any
restrictive or
qualified endorsement or assignment.
SECTION 5. Notice of Breach; Cure, Repurchase and Substitution.
(a) The Mortgage Loan Seller shall, not later than 90 days from
discovery by the Mortgage Loan Seller, or the receipt by the
Mortgage Loan
Seller of notice, of any Material Breach or Material Document
Defect with
respect to any Mortgage Loan (or, if such Material Breach or
Material Document
Defect, as the case may be, related to whether such Mortgage Loan
is, or as of
the Closing Date (or, in the case of a Replacement Mortgage Loan,
as of the
related date of substitution), was a Qualified Mortgage, and
provided that the
Mortgage Loan Seller discovered or received prompt written notice
thereof,
within 90 days after any earlier discovery by the Mortgage Loan
Seller or any
party to the Pooling and Servicing Agreement of such Material
Breach or Material
Document Defect, as the case may be) (such 90-day period, in any
case, the
"Initial Resolution Period"), correct or cure such Material
Document Defect or
Material Breach, as the case may be, in all material respects, or
repurchase the
affected Mortgage Loan at the applicable Purchase Price; provided
that if the
Mortgage Loan Seller certifies to the Trustee in writing (i) that
such Material
Document Defect or Material Breach, as the case may be, does not
relate to
whether the affected Mortgage Loan is or, as of the Closing Date
(or, in the
case of a Replacement Mortgage Loan, as of the related date of
substitution),
was a Qualified Mortgage, (ii) that such Material Document Defect
or Material
Breach, as the case may be, is capable of being cured but not
within the
applicable Initial Resolution Period, (iii) that such Mortgage Loan
Seller has
commenced and is diligently proceeding with the cure of such
Material Document
Defect or Material Breach, as the case may be, during the
applicable Initial
8
Resolution Period, and (iv) that such Mortgage Loan Seller
anticipates that such
Material Document Defect or Material Breach, as the case may be,
will be cured
within an additional 90-day period (such additional 90-day period,
the
"Resolution Extension Period"), then the Mortgage Loan Seller shall
have an
additional period equal to any such applicable Resolution Extension
Period to
complete such correction or cure (or, upon failure to complete such
correction
or cure, to repurchase the affected Mortgage Loan); and provided,
further, that,
in lieu of repurchasing the affected Mortgage Loan as contemplated
above (but,
in any event, no later than such repurchase would have to have been
completed),
such Mortgage Loan Seller shall be permitted, during the
three-month period
following the Startup Day for the REMIC Pool that holds the
affected Mortgage
Loan (or during the two-year period following such Startup Day if
the affected
Mortgage Loan is a "defective obligation" within the meaning of
Section
860G(a)(4)(B)(ii) of the Code and Treasury regulation section
1.860G-2(f)), to
replace the affected Mortgage Loan with one or more Qualifying
Substitute
Mortgage Loans and to pay a cash amount equal to the applicable
Substitution
Shortfall Amount. The parties hereto agree that delivery by the
Trustee (or a
Custodian on its behalf) of a certification or schedule of
exceptions to the
Mortgage Loan Seller pursuant to the Pooling and Servicing
Agreement shall not
in and of itself constitute delivery of notice of any Material
Document Defect
or knowledge of the Mortgage Loan Seller of any Material Document
Defect
therein. If any Mortgage Loan is to be repurchased or replaced as
contemplated
by this subsection, the Purchaser or its designee shall be entitled
to designate
the account to which funds in the amount of the applicable Purchase
Price or
Substitution Shortfall Amount (as the case may be) are to be wired.
Any such
repurchase or replacement of a Mortgage Loan shall be on a whole
loan, servicing
released basis. Notwithstanding this subsection, the absence from
the Mortgage
File, (i) on the Closing Date of the Mortgage Note (or a lost note
affidavit and
indemnity with a copy of the Mortgage Note) and (ii) by the first
anniversary of
the Closing Date of originals or copies of the following documents
(without the
presence of any factor that reasonably mitigates such absence,
non-conformity or
irregularity) or of any Specially Designated Mortgage Loan Document
shall be
conclusively presumed to be a Material Document Defect and shall
obligate the
Mortgage Loan Seller to cure such Material Document Defect, or,
failing that,
repurchase the related Mortgage Loan or REO Mortgage Loan, all in
accordance
with the procedures set forth herein: (a) the Mortgage and any
separate
Assignment of Leases as described by clauses (ii) and (iii) of the
definition of
"Mortgage File"; (b) the title insurance policy as described in
clause (viii) of
the definition of "Mortgage File" (or, if the policy has not yet
been issued, an
original or copy of a written commitment "marked-up" at the closing
of such
Mortgage Loan, interim binder or the pro forma title insurance
policy, in each
case evidencing a binding commitment to issue such policy); or (c)
the
assignment of Mortgage (and any separate Assignment of Leases) as
described by
clause (iv) of the definition of "Mortgage File". For purposes of
this
paragraph, the relevant definition of "Mortgage File" shall be the
definition of
such term set forth in the Pooling and Servicing Agreement as in
full force and
effect on the Closing Date.
The remedies provided for in this subsection with respect to any
Material Document Defect or Material Breach with respect to any
Mortgage
Loan shall apply to the related REO Property.
If (x) a Defective Mortgage Loan is to be repurchased or replaced
as described above, (y) such Defective Mortgage Loan is part of a
Cross-Collateralized Group and (z) the applicable document defect
or breach
does not constitute a Material
9
Document Defect or Material Breach, as the case may be, as to the
other
Mortgage Loan(s) that are a part of such Cross-Collateralized Group
(the
"Other Crossed Loans") (without regard to this paragraph), then the
applicable Document Defect or Breach (as the case may be) shall be
deemed
to constitute a Material Document Defect or Material Breach (as the
case
may be) as to each such Other Crossed Loan for purposes of the
above
provisions, and the Mortgage Loan Seller shall be obligated to
repurchase
or replace each such Other Crossed Loan in accordance with the
provisions
above unless, in the case of such Breach or Document Defect:
(A) the Mortgage Loan Seller (at its expense) delivers or
causes to be delivered to the Trustee an Opinion of Counsel to the
effect that its repurchase of only those Mortgage Loans as to which
a
Material Breach has actually occurred without regard to the
provisions
of this paragraph (the "Affected Loan(s)") and the operation of the
remaining provisions of this Section 5(a) will not result in an
Adverse REMIC Event with respect to any REMIC Pool, or an Adverse
Grantor Event with respect to either Grantor Trust Pool, under the
Pooling and Servicing Agreement; and
(B) both of the following conditions would be satisfied if
the Mortgage Loan Seller were to repurchase or replace only the
Affected Loans and not the Other Crossed Loans:
(i) the debt service coverage ratio for all such Other
Crossed Loan (excluding the Affected Loan(s)) for the four
calendar quarters immediately preceding the repurchase or
replacement is not less than the least of (A) 0.10x below the
debt service coverage ratio for the Cross-Collateralized Group
(including the Affected Loan(s)) set forth in Appendix B to the
Prospectus Supplement, (B) the debt service coverage ratio for
the Cross-Collateralized Group (including the Affected Loan(s))
for the four preceding calendar quarters preceding the repurchase
or replacement and (C) 1.25x; and
(ii) the loan-to-value ratio for the Other Crossed
Loans is not greater than the greatest of (A) the loan-to-value
ratio, expressed as a whole number (taken to one decimal place),
for the Cross-Collateralized Group (including the Affected
Loan(s)) set forth in Appendix B to the Prospectus Supplement
plus 10%, (B) the loan-to-value ratio for the
Cross-Collateralized Group (including the Affected Loan(s)) at
the time of repurchase or replacement, and (C) 75%.
The determination of the applicable Master Servicer as to whether
the conditions set forth above have been satisfied shall be
conclusive and
binding in the absence of manifest error. The applicable Master
Servicer
will be entitled to cause to be delivered, or direct the Mortgage
Loan
Seller to (in which case the Mortgage Loan Seller shall) cause to
be
delivered, to the applicable Master Servicer an Appraisal of any or
all of
the related Mortgaged Properties for purposes of determining
whether the
condition set forth in clause (ii) above has been satisfied, in
each case
at the expense of the Mortgage
10
Loan Seller if the scope and cost of the Appraisal is approved by
the
Mortgage Loan Seller and the Controlling Class Representative (such
approval not to be unreasonably withheld in each case).
With respect to any Defective Mortgage Loan that forms a part of
a Cross-Collateralized Group and as to which the conditions
described in
the preceding paragraph are satisfied, such that the Trust Fund
will
continue to hold the Other Crossed Loans, the Mortgage Loan Seller
and the
Purchaser agree to forbear from enforcing any remedies against the
other's
Primary Collateral but each is permitted to exercise remedies
against the
Primary Collateral securing its respective Mortgage Loans,
including with
respect to the Trustee, the Primary Collateral securing the
Affected
Loan(s) still held by the Trustee, so long as such exercise does
not impair
the ability of the Mortgage Loan Seller to exercise its remedies
against
its Primary Collateral. If the exercise of remedies by one such
party would
impair the ability of the other such party to exercise its remedies
with
respect to the Primary Collateral securing the Affected Loan or the
Other
Crossed Loans, as the case may be, held by the other such party,
then both
parties shall forbear from exercising such remedies unless and
until the
Mortgage Loan Documents evidencing and securing the relevant
Mortgage Loans
can be modified in a manner that complies with this Agreement to
remove the
threat of impairment as a result of the exercise of remedies. Any
reserve
or other cash collateral or letters of credit securing any of the
Cross-Collateralized Loans shall be allocated between the Mortgage
Loans in
accordance with the Mortgage Loan Documents, or otherwise on a pro
rata
basis based upon their outstanding Stated Principal Balances. All
other
terms of the Mortgage Loans shall remain in full force and effect,
without
any modification thereof. The Borrowers set forth on Schedule V to
the
Pooling and Servicing Agreement are intended third-party
beneficiaries of
the provisions set forth in this paragraph and the preceding
paragraph. The
provisions of this paragraph and the preceding paragraph may not be
modified with respect to any Mortgage Loan without the related
Borrower's
consent.
All costs and expenses incurred by the Trustee and the applicable
Master Servicer with respect to any Cross-Collateralized Group
pursuant to
the preceding paragraph shall be included in the calculation of
Purchase
Price for the Affected Loan(s) to be repurchased or replaced.
(b) Whenever one or more Replacement Mortgage Loans are substituted
for a Defective Mortgage Loan by the Mortgage Loan Seller as
contemplated by
this Section 5, upon direction by the applicable Master Servicer,
the Mortgage
Loan Seller shall deliver to the Trustee the related Mortgage File
and a
certification to the effect that such Replacement Mortgage Loan
satisfies or
such Replacement Mortgage Loans satisfy, as the case may be, all of
the
requirements of the definition of "Qualifying Substitute Mortgage
Loan". No
mortgage loan may be substituted for a Defective Mortgage Loan as
contemplated
by this Section 5 if the Mortgage Loan to be replaced was itself a
Replacement
Mortgage Loan, in which case, absent a cure of the relevant
Material Breach or
Material Document Defect, the affected Mortgage Loan will be
required to be
repurchased as contemplated hereby. Monthly Payments due with
respect to each
Replacement Mortgage Loan (if any) after the related date of
substitution, and
Monthly Payments due with respect to each corresponding Deleted
Mortgage Loan
(if any) after its respective Cut-off Date and on or prior to the
related date
of substitution, shall be part of the
11
Trust Fund. Monthly Payments due with respect to each Replacement
Mortgage Loan
(if any) on or prior to the related date of substitution, and
Monthly Payments
due with respect to each corresponding Deleted Mortgage Loan (if
any) after the
related date of substitution, shall not be part of the Trust Fund
and are to be
remitted by the applicable Master Servicer to the Mortgage Loan
Seller promptly
following receipt.
If any Mortgage Loan is to be repurchased or replaced by the
Mortgage
Loan Seller as contemplated by this Section 5, upon direction by
the applicable
Master Servicer, the Mortgage Loan Seller shall amend the Mortgage
Loan Schedule
to reflect the removal of any Deleted Mortgage Loan and, if
applicable, the
substitution of the related Replacement Mortgage Loan(s) and
deliver or cause
the delivery of such amended Mortgage Loan Schedule to the parties
to the
Pooling and Servicing Agreement. Upon any substitution of one or
more
Replacement Mortgage Loans for a Deleted Mortgage Loan, such
Replacement
Mortgage Loan(s) shall become part of the Trust Fund and be subject
to the terms
of this Agreement in all respects.
(c) Upon the date when the full amount of the Purchase Price or
Substitution Shortfall Amount (as the case may be) for any Mortgage
Loan
repurchased or replaced by the related Mortgage Loan Seller as
contemplated by
this Section 5 has been deposited in the account designated
therefor by the
Purchaser (or the applicable Master Servicer on its behalf), and
further, if
applicable, upon receipt by the Purchaser (or the Trustee or a
Custodian
appointed thereby) of the Mortgage File for each Replacement
Mortgage Loan (if
any) to be substituted for a Deleted Mortgage Loan, together with
any
certifications and/or opinions required pursuant to this Section 5
to be
delivered by the Mortgage Loan Seller, the Purchaser (or the
Trustee) shall (i)
release or cause the release of the Mortgage File and any
Additional Collateral
held by or on behalf of the Purchaser (or the Trustee) for the
Deleted Mortgage
Loan to the Mortgage Loan Seller or its designee and (ii) execute
and deliver
such instruments of release, transfer and/or assignment, in each
case without
recourse, as shall be provided to it and are reasonably necessary
to vest in the
Mortgage Loan Seller or its designee the ownership of the Deleted
Mortgage Loan,
and the Purchaser (or the applicable Master Servicer on its behalf)
shall notify
the affected Borrowers of the transfers of the Deleted Mortgage
Loan(s) and any
Replacement Mortgage Loan(s). In connection with any such
repurchase or
substitution by the Mortgage Loan Seller, each of the applicable
Master Servicer
and the Special Servicer (or other servicing agent for the
Purchaser) shall
deliver to the Mortgage Loan Seller or its designee any portion of
the related
Servicing File, together with any Escrow Payments, Reserve Funds
and Additional
Collateral, held by or on behalf of such Master Servicer or the
Special Servicer
(or other servicing agent for the Purchaser), as the case may be,
with respect
to the Deleted Mortgage Loan, in each case at the expense of the
Mortgage Loan
Seller.
(d) It is understood and agreed that the obligations of the
Mortgage
Loan Seller set forth in this Section 5 to cure a Material Breach
or a Material
Document Defect, or to repurchase or replace the related Defective
Mortgage
Loan(s), constitute the sole remedies available to the Purchaser,
the
Certificateholders or the Trustee on behalf of the
Certificateholders with
respect to a Breach or Document Defect in respect of any Mortgage
Loan.
12
Notwithstanding the foregoing, to the extent (but only to the
extent)
that (A) the Mortgage Loan Seller represents in the representation
and warranty
set forth in the final sentence of paragraph 23 or the
representation and
warranty set forth in the final sentence of paragraph 29 of Exhibit
C attached
hereto that the Borrower under a Mortgage Loan is required to pay,
or that the
lender is entitled to charge the Borrower for, a cost or expense
described in
such sentence, (B) such representation and warranty is untrue with
respect to
such cost or expense, (C) the Purchaser actually incurs such cost
or such
expense, (D) the Purchaser (or a Person acting on behalf of the
Purchaser)
exercises efforts consistent with the Servicing Standard and the
related
Mortgage Loan Documents to collect such cost or expense from the
Borrower and
(E) the Borrower does not pay such cost or expense at or before the
conclusion
of the efforts described in the preceding clause (D), then the
Mortgage Loan
Seller hereby covenants and agrees (it being the intention of the
parties that
all, and not less than all, of the conditions described in the
preceding clauses
(A), (B), (C), (D) and (E) shall be precedent to such covenant and
agreement) to
pay such cost or expense within 90 days following a direction by
the Purchaser
(or a Person acting on behalf of the Purchaser) to do so. Also
notwithstanding
the foregoing, the remedy described in the immediately preceding
sentence shall
constitute the sole remedy available to the Purchaser, the
Certificateholders or
the Trustee on behalf of the Certificateholders with respect to any
breach of
any representation described in clause (A) of the immediately
preceding
sentence, the Mortgage Loan Seller shall not otherwise have any
obligation to
cure such a breach and the Mortgage Loan Seller shall not have any
obligation to
repurchase or replace the affected Mortgage Loan.
SECTION 6. Closing. The closing of the sale of the Mortgage Loans
(the
"Closing") shall be held at the offices of Sidley Austin LLP, 787
Seventh
Avenue, New York, New York 10019 at 10:00 a.m., New York City time,
on the
Closing Date.
The Closing shall be subject to each of the following conditions:
(i) All of the representations and warranties of the
Mortgage Loan Seller made pursuant to Section 4 of this Agreement
shall be true and correct in all material respects as of the
Closing Date;
(ii) All documents specified in Section 7 of this
Agreement (the "Closing Documents"), in such forms as are agreed
upon and reasonably acceptable to the Purchaser and, in the case
of the Pooling and Servicing Agreement (insofar as such Agreement
affects the obligations of the Mortgage Loan Seller hereunder),
to the Mortgage Loan Seller, shall be duly executed and delivered
by all signatories as required pursuant to the respective terms
thereof;
(iii) The Mortgage Loan Seller shall have delivered and
released to the Purchaser or its designee, all documents, funds
and other assets required to be delivered thereto pursuant to
Section 2 of this Agreement;
(iv) The result of any examination of the Mortgage
Files for, and any other documents and records relating to, the
Mortgage Loans
13
performed by or on behalf of the Purchaser pursuant to Section 3
hereof shall be satisfactory to the Purchaser in its reasonable
determination;
(v) 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
Mortgage Loan Seller shall have the ability to comply with all
terms and conditions and perform all duties and obligations
required to be complied with or performed by it after the Closing
Date;
(vi) The Mortgage Loan Seller shall have paid all fees
and expenses payable by it to the Purchaser or otherwise pursuant
to this Agreement;
(vii) the Mortgage Loan Seller shall have received the
purchase price for the Mortgage Loans, as contemplated by Section
1; and
(viii) Neither the Underwriting Agreement nor the
Certificate Purchase Agreement shall have been terminated in
accordance with its terms.
Each of the parties agrees to use their commercially reasonable
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 Purchaser or its designee shall
have
received all of the following Closing Documents, in such forms as
are agreed
upon and acceptable to the Purchaser, the Underwriters, the Initial
Purchasers
and the Rating Agencies (collectively, the "Interested Parties"),
and upon which
the Interested Parties may rely:
(i) This Agreement, duly executed by the Purchaser and
the Mortgage Loan Seller;
(ii) Each of the Pooling and Servicing Agreement and
the Indemnification Agreement, duly executed by the respective
parties thereto;
(iii) An Officer's Certificate substantially in the
form of Exhibit D-1 hereto, executed by the Secretary or an
assistant secretary of the Mortgage Loan Seller, in his or her
individual capacity, and dated the Closing Date, and upon which
the Interested Parties may rely, attaching thereto as exhibits
(A) the resolutions of the board of directors of the Mortgage
Loan Seller authorizing the Mortgage Loan Seller's entering into
the transactions contemplated by this Agreement and the
Indemnification Agreement, and (B) the organizational documents
of the Mortgage Loan Seller;
14
(iv) A certificate of good standing with respect to the
Mortgage Loan Seller issued by the Secretary of State of the
State of New York not earlier than 60 days prior to the Closing
Date, and upon which the Interested Parties may rely;
(v) A Certificate of the Mortgage Loan Seller
substantially in the form of Exhibit D-2 hereto, executed by an
executive officer of the Mortgage Loan Seller on the Mortgage
Loan Seller's behalf and dated the Closing Date, and upon which
the Interested Parties may rely;
(vi) The written opinion of in-house counsel for the
Mortgage Loan Seller, dated the Closing Date and addressed to the
Interested Parties and the Trustee, which opinion shall be
substantially in the form of Exhibit D-3A hereto (with such
additions, deletions or modifications as may be required by
either Rating Agency);
(vii) A written opinion of Cadwalader, Wickersham &
Taft LLP, special counsel for the Mortgage Loan Seller, dated the
Closing Date and addressed to the Interested Parties and the
Trustee, which opinion shall be substantially in the form of
Exhibit D-3B hereto (with such additions, deletions or
modifications as may be required by either Rating Agency);
(viii) A letter from Cadwalader, Wickersham & Taft LLP,
special counsel for the Mortgage Loan Seller, dated the Closing
Date and addressed to BSCMSI and the Underwriters, which letter
shall be substantially in the form of Exhibit D-3C hereto;
(ix) copies of all other opinions rendered by counsel
for the Mortgage Loan Seller to the Rating Agencies in connection
with the transactions contemplated by this Agreement, including,
but not limited to, with respect to the characterization of the
transfer of the Mortgage Loans hereunder as a true sale, with
each such opinion to be addressed to the other Interested Parties
and the Trustee or accompanied by a letter signed by such counsel
stating that the other Interested Parties and the Trustee may
rely on such opinion as if it were addressed to them as of date
thereof;
(x) One or more comfort letters from Deloitte & Touche
LLP, certified public accountants, dated the date of any
preliminary Prospectus Supplement, the Prospectus Supplement and
the Memorandum, respectively, and addressed to, and in form and
substance acceptable to, the Interested Parties (other than the
Rating Agencies), stating in effect that, using the assumptions
and methodology used by BSCMSI or the Underwriters, as
applicable, all of which shall be described in such letters, they
have recalculated such numbers and
15
percentages relating to the Mortgage Loans set forth in any
preliminary Prospectus Supplement, the Prospectus Supplement and
the Memorandum, compared the results of their calculations to the
corresponding items in any preliminary Prospectus Supplement, the
Prospectus Supplement and the Memorandum, respectively, and found
each such number and percentage set forth in any preliminary
Prospectus Supplement, the Prospectus Supplement and the
Memorandum, respectively, to be in agreement with the results of
such calculations; and
(xi) Such further certificates, opinions and documents
as the Purchaser may reasonably request or any Rating Agency may
require.
SECTION 8. Costs. Whether or not this Agreement is terminated, the
costs and expenses incurred in connection with the transactions
herein
contemplated shall be allocated pursuant to the terms of a
settlement statement
dated the Closing Date.
SECTION 9. Notices. All demands, notices and communications
hereunder
shall be in writing and shall be deemed to have been duly given if
personally
delivered to or mailed, by registered mail, postage prepaid, by
overnight mail
or courier service, or transmitted by facsimile and confirmed by
similar mailed
writing, if to the Purchaser, addressed to the Purchaser at 383
Madison Avenue,
New York, New York 10179, Attention: J. Christopher Hoeffel, Senior
Managing
Director, Commercial Mortgage Department (with copies to the
attention of Joseph
T. Jurkowski, Jr., Managing Director, Legal Department), or such
other address
as may be designated by the Purchaser to the Mortgage Loan Seller
in writing,
or, if to the Mortgage Loan Seller, addressed to the Mortgage Loan
Seller at 383
Madison Avenue, New York, New York 10179, Attention: J. Christopher
Hoeffel,
Senior Managing Director, Commercial Mortgage Department (with
copies to the
attention of Joseph T. Jurkowski, Jr., Managing Director, Legal
Department), or
such other address as may be designated by the Mortgage Loan Seller
to the
Purchaser in writing.
SECTION 10. Miscellaneous. Neither this Agreement nor any term or
provision hereof may be changed, waived, discharged or terminated
except by a
writing signed by a duly authorized officer of the party against
whom
enforcement of such change, waiver, discharge or termination is
sought to be
enforced. This Agreement may be executed in any number of
counterparts, each of
which shall for all purposes be deemed to be an original and all of
which shall
together constitute but one and the same instrument. This Agreement
will inure
to the benefit of and be binding upon the parties hereto and their
respective
successors and assigns, and no other person will have any right or
obligation
hereunder. Notwithstanding any contrary provision of this Agreement
or the
Pooling and Servicing Agreement, the Purchaser shall not consent to
any
amendment of the Pooling and Servicing Agreement which will
increase the
obligations of, or otherwise adversely affect, the Mortgage Loan
Seller, without
the consent of the Mortgage Loan Seller.
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 Mortgage Loan Seller delivered pursuant hereto,
shall remain
operative and in full force and effect and shall survive delivery
of
16
the Mortgage Loans by the Mortgage Loan Seller to BSCMSI and by
BSCMSI to the
Trust, notwithstanding any restrictive or qualified endorsement or
assignment in
respect of any Mortgage Loan.
SECTION 12. Severability of Provisions. Any part, provision,
representation, warranty or covenant of this Agreement that is
prohibited or 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 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. Governing Law; Consent to Jurisdiction; Waiver of Trial
by
Jury. THIS AGREEMENT SHALL 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, EACH OF THE PURCHASER AND THE MORTGAGE LOAN SELLER
HEREBY
IRREVOCABLY (I) SUBMITS TO THE JURISDICTION OF ANY NEW YORK STATE
AND FEDERAL
COURTS SITTING IN THE BOROUGH OF MANHATTAN 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; (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; AND (V) WAIVES TO THE EXTENT PERMITTED BY APPLICABLE LAW ALL
RIGHT TO TRIAL
BY JURY IN ANY ACTION, CLAIM, SUIT, PROCEEDING OR COUNTERCLAIM
(WHETHER BASED
UPON CONTRACT, TORT OR OTHERWISE) RELATING TO OR ARISING OUT OF
THIS AGREEMENT.
SECTION 14. Further Assurances. The Mortgage Loan Seller and the
Purchaser each agrees to execute and deliver such instruments and
take such
further actions as any other party hereto may, from time to time,
reasonably
request in order to effectuate the purposes and to carry out the
terms of this
Agreement.
SECTION 15. Successors and Assigns. The rights and obligations of
the
Mortgage Loan Seller under this Agreement shall not be assigned by
the Mortgage
Loan Seller without the prior written consent of the Purchaser,
except that any
person into which the Mortgage Loan Seller may be merged or
consolidated, or any
person resulting from any merger, conversion or consolidation to
which the
Mortgage Loan Seller is a party, or any person succeeding to all or
substantially all of the business of the Mortgage Loan Seller,
shall be the
17
successor to the Mortgage Loan Seller hereunder. In connection with
its transfer
of the Mortgage Loans to the Trust as contemplated by the recitals
hereto,
BSCMSI is expressly authorized to assign its rights under this
Agreement, in
whole or in part, to the Trustee for the benefit of the registered
holders and
beneficial owners of the Certificates. To the extent of any such
assignment, the
Trustee, for the benefit of the registered holders and beneficial
owners of the
Certificates, shall be the Purchaser hereunder. Subject to the
foregoing, this
Agreement shall bind and inure to the benefit of and be enforceable
by the
Mortgage Loan Seller and the Purchaser, and their respective
successors and
permitted assigns.
SECTION 16. Information. The Mortgage Loan Seller shall provide the
Purchaser with such information about itself, the Mortgage Loans
and the
underwriting and servicing procedures applicable to the Mortgage
Loans as is (i)
customary in commercial mortgage loan securitization transactions,
(ii) required
by a Rating Agency or a governmental agency or body or (iii)
reasonably
requested by the Purchaser for use in a public or private
disclosure document.
SECTION 17. Cross-Collateralized Mortgage Loans. Notwithstanding
anything herein to the contrary, it is hereby acknowledged that
certain groups
of Mortgage Loans are, in the case of each such particular group of
Mortgage
Loans (each, a "Cross-Collateralized Group"), by their terms,
cross-defaulted
and cross-collateralized, if identified as such on the Mortgage
Loan Schedule.
For purposes of reference, the Mortgaged Property that relates or
corresponds to
any of the Mortgage Loans referred to in this Section 17 shall be
the property
identified in the Mortgage Loan Schedule as corresponding thereto.
The
provisions of this Agreement, including, without limitation, each
of the
representations and warranties set forth in Exhibit C hereto and
each of the
capitalized terms used herein but defined in the Pooling and
Servicing
Agreement, shall be interpreted in a manner consistent with this
Section 17. In
addition, if there exists with respect to any Cross-Collateralized
Group only
one original of any document referred to in the definition of
"Mortgage File" in
the Pooling and Servicing Agreement and covering all the Mortgage
Loans in such
Cross-Collateralized Group, the inclusion of the original of such
document in
the Mortgage File for any of the Mortgage Loans constituting such
Cross-Collateralized Group shall be deemed an inclusion of such
original in the
Mortgage File for each such Mortgage Loan.
SECTION 18. Entire Agreement. Except as otherwise expressly
contemplated hereby, this Agreement constitutes the entire
agreement and
understanding of the parties with respect to the matters addressed
herein, and
this Agreement supersedes any prior agreements and/or
understandings, written or
oral, with respect to such matters.
[SIGNATURE PAGE FOLLOWS]
18
IN WITNESS WHEREOF, the Mortgage Loan Seller and the Purchaser have
caused this Agreement to be duly executed by their respective
officers as of the
day and year first above written.
BEAR STEARNS COMMERCIAL MORTGAGE, INC.
By:
------------------------------------
Name: Richard A. Ruffer Jr.
Title: Managing Director
BEAR STEARNS COMMERCIAL MORTGAGE
SECURITIES INC.
By:
------------------------------------
Name: Richard A. Ruffer Jr.
Title: Vice President
BSCMI MLPA
EXHIBIT A
SCHEDULE OF BSCMI POOLED MORTGAGE LOANS
Ex. A-1
SELLER LOAN
ID
NUMBER
PROPERTY NAME
LOAN GROUP
ADDRESS
-----------------------------------------------------------------------------------------------------------------------------------
1
46884
Alexandria Portfolio
1
Various
1-a
46884
681 Gateway Boulevard
681 Gateway Boulevard
1-b
46884
901 Gateway Boulevard
901 Gateway Boulevard
1-c
46884
7000 Shoreline Court
7000 Shoreline Court
1-d
46884
951 Gateway Boulevard
951 Gateway Boulevard
3
45782
Paces West
1
2727 Paces Ferry Road
6
46841
Fairmont Plaza Office
1
50 West San Fernando St.
7
46993
Brandywine Anchors
1
5190 Brandywine Parkway
9
47205
Le Pavillon Hotel
1
833 Poydras Street
10
46169
Pennswood Apartments
2
4913 Wynnewood Road
11
47102
Brandywine Center Crescent Lower Level
1
5190 Brandywine Parkway
15
44041
Colonial Park
2
42-12 Williamsburg Drive
16
45899
Phillipsburg Commerce Center
1
942 Memorial Parkway/Route 22
17
47103
Brandywine Mixed Use
1
5190 Brandywine parkway
18
47204
913 Old Philadelphia Road
1
913 Old Philadelphia Road
22
47104
Brandywine Market Square
1
5515 & 5601 Concord Pike
25
47320
Legacy Village
1
NWC of Baseline Road & 24th Street
26
47105
Brandywine Condominium
1
5190 Brandywine Parkway
30
46962
730 Pilot Road
1
730 Pilot Road
36
46205
Parker Square
1
300-900 Parker Square
37
47173
Ozburn Hessey Logistics
1
7401 Fremont Pike
38
45472
Petroleum Towers
1
8626-8700 Tesoro Drive
39
46651
Oakwood Apartments
2
26300 Berg Road
40
47000
600 & 619 Alexander Road
1
600 & 619 Alexander Road
46
46918
BJ's Miami
1
17250 NW 57th Avenue
48
44091
The Willows at Barrington
2
1200 Clements Bridge Road
53
46185
Madelon Condominium
1
3251 Prospect Street, N.W.
55
45720
Chapel Hill Commons
1
4919 Flat Shoals Parkway
57
46903
Kyrene Village
1
6045-6245 West Chandler Boulevard
59
45975
Lake Forest Marketplace
1
23831 El Toro Boulevard
64
45873
Perkasie Square
1
505 Constitution Avenue
65
47207
Courtyard Apartments Valdosta
2
480 Murray Road
70
44044
Fox Ridge
2
220 A Dobbs Drive
73
47177
La Quinta Carlsbad
1
760 Macadamia Drive
74
47184
New Bern Commons
1
4501 New Bern Avenue
76
46919
Green Bay Hilton Garden Inn
1
1015 Lombardi Avenue
88
47022
2520 & 2530 Riva Road
1
Various
88-a
47022
2520 Riva Road - Best Western Riva Road
2520 Riva Road
88-b
47022
2530 Riva Road - Riva Road Office
2530 Riva Road
90
46377
Villages of Lake Jackson
2
504 Highway 332
94
46762
Lindbergh & Sunshine
1
Various
94-a
46762
Lindbergh Park
7500 & 7510-20 Lindbergh Drive
94-b
46762
Sunshine Shopping Center
22301 Georgia Avenue
99
44227
Agua Caliente
1
6990 E. Shea Boulevard
104
47044
Appleton Hilton Garden Inn
1
720 Eisenhower Drive
109
47395
Hampton Inn Exton
1
4 North Pottstown Pike
113
46852
Philadelphia Office Portfolio
1
Various
113-a
46852
Smylie Times Building
2607 Rhawn Street
113-b
46852
Roosevelt Building
8040 East Roosevelt Blvd.
115
46980
Upper Montclair Portfolio
1
Various
115-a
46980
605 Valley Road
605 Valley Road
115-b
46980
221-227 Bellevue Avenue
223-227 Bellevue Avenue
115-c
46980
572 Valley Road
572 Valley Road
125
47081
Gibraltar Court
1
165 Gibraltar Court
129
46664
Hillside Industrial NJ
1
1319 North Broad Street
140
46692
5801 West Side Avenue
1
5801 West Side Avenue
145
46881
Highland Plaza Shopping Center
1
10118 West 119th Street
160
46972
711 Daily Drive
1
711 Daily Drive
161
46818
20-22 Meridian Road
1
20-22 Meridian Road
167
46192
1528 Chestnut Street
1
1528 Chestnut Street
168
45477
The Meadowridge Business Center
1
6605 Business Parkway
170
46139
Sunquest Apartments
2
445 North Pantano Road
174
45444
Hebron Crossing
1
1016 East Hebron Parkway
176
43777
Attleboro Corporate Campus
1
Various
176-a
43777
Attleboro Corporate Campus Bldg. 12
533 Pleasant Street
176-b
43777
Attleboro Corporate Campus Bldg. 5
537 Pleasant Street
177
46534
Evenhaim Building
1
21530 Roscoe Blvd.
184
46371
Beacon Hill Hotel and Bistro
1
25 Charles Street
188
47323
Monson Plaza
1
107 - 123 Main Street
197
46822
Raley's Office Building
1
681 West Capitol Avenue
202
47217
Rite Aid - Flat Rock
1
28659 Telegraph Rd
203
46177
New Englander Industrial Park
1
100,150,161,210,241 Kuniholm Drive
204
46636
176 East 176th Street
2
176 East 176th St
205
47218
Rite Aid - Warren
1
3950 E. 14 Mile Road
212
46804
Eckerd - Mattydale
1
2616 Brewerton Road
214
45803
Super 8 Mission Valley
1
4380 Alvarado Canyon Road
216
46813
Eckerd - Philadelphia
1
7418 Oxford Avenue
218
46803
Eckerd - Syracuse (Valley)
1
401 West Seneca Turnpike
225
46805
Eckerd - Liverpool (Route 57)
1
7398 Oswego Road
226
47199
Coconut Grove Shopping Center
1
2801 East University Drive
228
46811
Eckerd - Elmira North Main
1
119 West 2nd Street
236
46635
2505 Olinville Avenue
2
2505 Olinville Avenue
242
47219
Rite Aid - Macomb
1
46977 Romeo Plank Road
246
47579
Cary Hill Plaza Shopping Center
1
240 East Ashland Street
250
47227
Days Inn Banning
1
2320 West Ramsey Street
252
46809
Eckerd - Cortlandville
1
1067 State Route 222
254
47572
CVS
