Document:

EXHIBIT 10.10

                         DEPOSIT AND SECURITY AGREEMENT
             THE NATIONAL COLLEGIATE STUDENT LOAN TRUST 20____-_____

         This Deposit and Security Agreement (the "AGREEMENT") is made and
entered into as of ______________, 20____, by and among THE EDUCATION RESOURCES
INSTITUTE, INC., a private non-profit corporation organized under Chapter 180 of
the Massachusetts General Laws with its principal place of business at 31 St.
James Avenue, Boston, Massachusetts 02116 ("TERI"), FIRST MARBLEHEAD DATA
SERVICES, INC., a corporation organized under the General Corporation Law of the
State of Massachusetts with its principal place of business at 31 St. James
Avenue, Boston, Massachusetts 02116 (the "ADMINISTRATOR"), and THE NATIONAL
COLLEGIATE STUDENT LOAN TRUST 20____-____, in its capacity as owner (in such
capacity, the "OWNER").

         WHEREAS, the Owner is willing to purchase education loans to borrowers
under the education loan programs listed on SCHEDULE A attached hereto and
others in accordance with the Indenture (collectively, the "STUDENT LOAN
PROGRAMS") upon certain terms and conditions, including but not limited to the
guaranty of the payment of principal and interest by TERI pursuant to the terms
of the Guaranty Agreements (as hereafter defined) and the deposit of certain
monies with U.S. Bank National Association (the "TRUSTEE"), on behalf of the
Owner, as security for such payment as more fully described herein and in
accordance with the terms and conditions set forth in this Agreement, and the
agreements (the "ACCOUNT SECURITY AGREEMENTS") listed on SCHEDULE B attached
hereto and others in accordance with the Indenture;

         WHEREAS, under the terms of the Guaranty Agreements listed on SCHEDULE
B attached hereto and others in accordance with the Indenture between TERI and
each of the parties (the "LOAN ORIGINATORS") listed on SCHEDULE B attached
hereto and others in accordance with the Indenture, TERI guaranties the payment
of principal and interest on the Loans in exchange for the payment of certain
Guaranty Fees (as hereinafter defined);

         WHEREAS, pursuant to the Student Loan Purchase Agreements listed on
SCHEDULE B attached hereto and others in accordance with the Indenture, between
the Loan Originators and the Owner's predecessor in interest, The First
Marblehead Corporation (the "STUDENT LOAN PURCHASE AGREEMENTS"), the Owner has
agreed to acquire certain Loans;

         WHEREAS, Administrator is authorized to act for the Owner in all
matters relating to this Agreement; and

         WHEREAS, it is the intention of the Owner and TERI that this Agreement
shall apply to each Loan that is (i) subject to the Guaranty Agreements and (ii)
purchased by the Owner with funds held under the Indenture (as hereafter
defined).

         NOW, THEREFORE, in consideration of the premises and for other good and
valuable consideration, the parties agree as follows:

         1. DEFINITIONS. Capitalized terms not otherwise defined in this
Section, in the recitals hereto or elsewhere in this Agreement shall have the
meanings ascribed to such terms

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in the Guaranty Agreements, true and complete copies of which are attached as
EXHIBIT 6 to this Agreement. In addition:

         (a) "CLOSING DATE" shall mean each of the dates on which the Owner
consummates a transaction to purchase the Loans pursuant to the Student Loan
Purchase Agreements.

         (b) "COLLATERAL" shall have the meaning set forth in Section 5.

         (c) "ELIGIBLE INVESTMENTS" means the following categories of
securities:

                  (i)      For all purposes:

                           (A) Cash (insured at all times by the Federal Deposit
Insurance Corporation);

                           (B) Obligations of, or obligations guaranteed as to
principal and interest by, the U.S. or any agency or instrumentality thereof,
when such obligations are backed by the full faith and credit of the U.S.
government including:

                           o        U.S. treasury obligations
                           o        All direct or fully guaranteed obligations
                           o        Farmers Home Administration
                           o        General Services Administration
                           o        Guaranteed Title XI financing
                           o        Government National Mortgage Association
                                    (GNMA)
                           o        State and Local Government Series

                           (C) Obligations of government-sponsored agencies that
are not backed by the full faith and credit of the U.S. government including:

                           o        Federal Home Loan Mortgage Corp. (FHLMC)
                                    Debt obligations
                           o        Farm Credit System (formerly: Federal Land
                                    Banks, Federal Intermediate Credit Banks,
                                    and Banks for Cooperatives) o Federal Home
                                    Loan Banks (FHL Banks)
                           o        Federal National Mortgage Association (FNMA)
                                    debt obligations
                           o        Financing Corp. (FICO) debt obligations
                           o        Resolution Funding Corp. (REFCORP) debt
                                    obligations
                           o        U.S. Agency for International Development
                                    (U.S. A.I.D) guaranteed notes

         U.S.A.I.D. securities must mature at least four business days before
the appropriate payment date.

                  (ii)     Investments in refunding escrow accounts:

                           (A) Obligations of any of the following federal
agencies which obligations represent the full faith and credit of the United
States of America, including:

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                           o        Export-Import Bank
                           o        Rural Economic Community Development
                                    Administration
                           o        U.S. Maritime Administration
                           o        Small Business Administration
                           o        U.S. Department of Housing & Urban
                                    Development (PHAs)
                           o        Federal Housing Administration
                           o        Federal Financing Bank

                           (B) Direct obligations of any of the following
federal agencies which obligations are not fully guaranteed by the full faith
and credit of the U.S.:

                           o        Senior debt obligations issued by the
                                    Federal National Mortgage Association (FNMA)
                                    or Federal Home Loan Mortgage Corporation
                                    (FHLMC)
                           o        Obligations of the Resolution Funding
                                    Corporation (REFCORP)
                           o        Senior debt obligations of the Federal Home
                                    Loan Bank System
                           o        Senior debt obligations of other government
                                    sponsored agencies

                           (C) U.S. dollar denominated deposit accounts, federal
funds and bankers' acceptances with domestic commercial banks which have a
rating on their short term certificates of deposit on the date of purchase of:
(1) "A-1+" by S&P and (2) either "P-1" by Moody's or "F1" by Fitch; and maturing
not more than 360 calendar days after the date of purchase. (Ratings on holding
companies are not considered as the rating of the bank);

                           (D) Commercial paper that meets the ratings of the
following listed rating agencies at the time of purchase: (1) "A-1+" by S&P and
(2) either "P-1" by Moody's or "F1" by Fitch; which matures not more than 270
calendar days after the date of purchase;

                           (E) Investments in a money market fund rated "AAAm"
or "AAA-m" by S&P and "Aaa" by Moody's;

                           (F) Pre-refunded "municipal obligations" which are
defined as follows: any bonds or other obligations of any state of the U.S. or
of any agency, instrumentality or local governmental unit of any such state
which are not callable at the option of the obligor prior to maturity or as to
which irrevocable instructions have been given by the obligor to call on the
date specified in the notice; and

                                    (1) Which are rated, based on an irrevocable
escrow account or fund (the "escrow"), in the highest rating category of (a) S&P
and (b) either Moody's or Fitch or any successors thereto; or

                                    (2) (a) Which are fully secured as to
principal and interest and redemption premium, if any, by an escrow consisting
only of cash or obligations described in paragraph (i)(B) above, which escrow
may be applied only to the payment of such principal of

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and interest and redemption premium, if any, on such bonds or other obligations
on the maturity date or dates thereof or the specified redemption date or dates
pursuant to such irrevocable instructions, as appropriate, and (b) which escrow
is sufficient, as verified by a nationally recognized independent certified
public accountant, to pay principal of and interest and redemption premium, if
any, on the bonds or other obligations described in this paragraph on the
maturity date or dates specified in the irrevocable instructions referred to
above, as appropriate;

                           (G) Any other investment that is generally approved
by Moody's, S&P and Fitch for the investment of funds held as collateral for
securities rated in the highest investment rating category and that is not:

                                    (1) A financial asset that involves the
Issuer, the Administrator or the beneficial owners of the Issuer in making
decisions other than the decisions inherent in servicing the financial assets
including without limitation any financial asset that includes an option to be
exercised by the Issuer, the Administrator or the beneficial owners of the
Issuer; or

                                    (2) A derivative financial instrument that
involves the Issuer, the Administrator or the beneficial owners of the Issuer in
making decisions including without limitation any derivative financial
instrument that includes an option allowing the Issuer, the Administrator or the
beneficial owners of the Issuer to choose to call or put other financial
instruments; provided that a derivative financial instrument shall be an
Eligible Investment only if it is acquired from proceeds of the issuance of
Notes by the Issuer at the time of such issuance.

                  (iii) The value of the above investments shall be determined
as follows:

                           (A) For the purpose of determining the amount in any
fund, all Investment Securities credited to such fund shall be valued at fair
market value. The Trustee shall determine the fair market value based on
accepted industry standards and from accepted industry providers. Accepted
industry providers shall include but are not limited to pricing services
provided by Financial Times Interactive Data Corporation, Merrill Lynch & Co.,
Citigroup Global Markets Inc., Bear Stearns & Co. Inc., Deutsche Bank AG, New
York Branch, or Lehman Brothers;

                           (B) As to certificates of deposit and bankers'
acceptances: the face amount thereof, plus accrued interest thereon; and

                           (C) As to any investment not specified above: the
value thereof established by prior agreement between the Issuer and the Trustee.

         (d) "EXISTING PLEDGED ACCOUNT" means the Pledged Account, if any,
created pursuant to the Account Security Agreements and named therein the
"Pledged Account."

         (e) "GUARANTY AGREEMENTS" shall mean each of the Guaranty Agreements
between each of the Loan Originators and TERI, and any amendments or
modifications thereto, as set forth on SCHEDULE B attached hereto and others in
accordance with the Indenture.

         (f) "GUARANTY CLAIMS" shall mean a claim made by or on behalf of the
Owner for payment by TERI following a Guaranty Event.

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         (g) "GUARANTY FEES" shall mean, collectively, all of the fees payable
to TERI for the guarantee of a Loan as described in each of the Guaranty
Agreements.

         (h) "INDENTURE" means the Indenture dated as of ____________, 20____,
by and between the Owner and the Trustee, as may be amended or supplemented from
time to time.

         (i) "INTANGIBLES" shall have the meaning set forth in Section 5(a)(ii).

         (j) "QUARTERLY DISTRIBUTION DATE" shall have the meaning set forth in
the Indenture.

         (k) "RECOVERIES" shall mean and include: (i) any and all cash, checks,
drafts, orders and all other instruments for the payment of money received by
TERI from or on behalf of Borrowers in payment of principal of, interest on,
late fees with respect to, and costs of collecting defaulted Loans with respect
to which TERI has paid, in full, Guaranty Claims, from funds in the Pledged
Account, and the proceeds of all of the foregoing, (ii) any amount received by
TERI upon the sale or other transfer of defaulted Loans with respect to which
TERI has paid, in full, Guaranty Claims (including the sale of such Loans to the
Owner as provided in each of the Guaranty Agreements or the sale of the right to
collect such Loans or other similar rights with respect thereto), and (iii) in
connection with any pledge or assignment of defaulted Loans (or rights with
respect thereto) to secure a loan to TERI, the amount of such loan. In all
cases, "Recoveries" shall be computed net of TERI's Costs of Collection. TERI's
"COSTS OF COLLECTION" for purposes of this Agreement shall mean all fees and
expenses paid to third party collectors and attorneys, and, to cover TERI's
internal costs, an amount equal to __________ percent (_____%) of the amount
recovered (excluding amounts recovered upon the sale of loans to the Owner as
provided in each of the Guaranty Agreements).

         (l) "SECURED OBLIGATIONS" shall have the meaning set forth in Section
6.

         (m) "TERI GUARANTEE FEE ENTITLEMENT" means a portion of Guaranty Fees
equal to __________ percent (_____%) of the principal amount of a Loan, payable
in accordance with each of the Guaranty Agreements.

         2. CREATION AND FUNDING OF THE PLEDGED ACCOUNT. Upon the execution of
this Agreement, the Owner shall establish with the Trustee pursuant to the
Indenture an account (the "PLEDGED ACCOUNT") for the purpose of depositing upon
receipt portions of the Guaranty Fees, Recoveries and earnings as provided in
this Section 2. The Pledged Account shall be funded (a) (i) by transfer of (A)
all amounts held on each Closing Date in the Existing Pledged Account that
relate to the Loans being purchased on such Closing Date, determined as set
forth in each of the Account Security Agreements, (b) by TERI with all Guaranty
Fees payable on each Closing Date with respect to the Loans being purchased, and
(c) by TERI with all Recoveries with respect to Loans on which TERI has paid
Guaranty Claims, and earnings on the Pledged Account, all of which shall be
pledged by TERI to the Owner under the terms of this Agreement. TERI hereby
irrevocably directs the Owner to deposit the following amounts into the Pledged
Account:

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         (a) Any and all Guaranty Fees previously paid by the Loan Originators
and currently held by the Trustee in the Existing Pledged Account created under
each of the Account Security Agreements with respect to Loans purchased on any
Closing Date as set forth in each of the Account Security Agreements;

         (b) Any and all additional Guaranty Fees with respect to such Loans
purchased by the Owner, which fees will be deposited into the Pledged Account on
each Closing Date; and

         (c) All Recoveries, which Recoveries shall be remitted by or on behalf
of TERI to the Trustee on the 15th day of each month, for Recoveries received
during the preceding month.

Any amounts remitted to the Trustee for deposit into the Pledged Account shall
be accompanied by a notice in the form of EXHIBIT 2.

         3. PLEDGED ACCOUNT INVESTMENT AND MAINTENANCE.

         (a) The Owner shall withdraw from the Pledged Account and deposit into
the Reserve Fund of the Indenture any amounts owed by TERI under each of the
Guaranty Agreements for Guaranty Claims as provided in Section 3(d)(i) hereof.
The Owner understands and agrees that TERI shall be required to pay any such
claim amounts out of TERI's general reserves and other assets only to the extent
that and for so long as the Pledged Account is without sufficient funds or is
otherwise unavailable to promptly pay whatever amounts are then due and payable
under each of the Guaranty Agreements. Notwithstanding the foregoing, while
there is a default by TERI under Section 8 hereof continuing, the provisions of
Section 9 hereof shall apply.

         (b) Prior to the occurrence of a default by TERI under Section 8
hereof, TERI may direct the Owner to invest amounts held in the Pledged Account
in one or more Eligible Investments. If a default under Section 8 occurs and is
continuing, the Administrator shall have the sole right to direct investment of
the Pledged Account, but such investments shall be limited to Eligible
Investments.

         (c) No interest, dividends, distributions or other earnings of whatever
nature which are paid and derived from the Pledged Account (collectively,
"EARNINGS") shall be withdrawn or paid to the Owner or TERI or any other person
or entity unless pursuant to the provisions of Section 3(d). All Earnings shall
be fully, immediately and completely reinvested in the Pledged Account. Any
other provisions of this Agreement to the contrary (either expressly or by
implication) notwithstanding, all Earnings net of losses shall be credited to
and deemed income of TERI and not of the Owner, and shall be so treated by TERI.

         (d) Withdrawals and disbursements from the Pledged Account shall be
made only in accordance with the following provisions:

                  (i) Upon receipt by the Owner of a Payment of Guaranty Claims
Direction Letter, substantially in the form of EXHIBIT 1 (and, after the
occurrence of a default

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under Section 8, whether or not such a Direction Letter is received), the Owner
shall withdraw from the Pledged Account and deposit in the Revenue Fund of the
Indenture the full amount of any valid Guaranty Claims made in accordance with
each of the Guaranty Agreements for defaulted Loans.

                  (ii) In the event TERI's income on the Pledged Account should
become subject to federal income taxation or the income from the Pledged Account
should become subject to excise tax under section 4940 of the Internal Revenue
Code of 1986, as amended, TERI shall be entitled to the release of Earnings from
the Pledged Account equal to the taxes actually paid by TERI with respect to the
income on the Pledged Account. TERI shall provide the Administrator and the
Trustee with a written request substantially in form of EXHIBIT 5 attached
hereto, for any such withdrawal, which request shall be accompanied by
documentation as to the amounts to be withdrawn ("WITHDRAWAL REQUEST"). Not
later than (15) days following receipt by the Administrator of a Withdrawal
Request, the Administrator may either (A) notify TERI of any objection to such
Withdrawal Request along with reasons for such objection or (B) request any
further information or documentation relating to such request. If the
Administrator does not object or request further information from TERI within
such (15) day period, the Administrator shall be deemed to have consented to the
Withdrawal Request, and the Administrator shall thereafter promptly cause the
Trustee to withdraw the requested funds from the Pledged Account. If the
Administrator objects to any Withdrawal Request, the Administrator shall deny
the request and provide TERI with a written statement of the Administrator's
reasons for denial, which denial must be reasonably based on the requirements
set forth in this Section 3(d).

         4. EXCESS FUNDS IN THE PLEDGED ACCOUNT. If on any Quarterly
Distribution Date under the Indenture, the product of (a) the aggregate
outstanding principal balance of and earned interest on Loans held by or pledged
to the Trustee, multiplied by (b) a factor equal to __________ (_____) (the
"STRESS FACTOR") is less than the balance in the Pledged Account, and, if no
default exists hereunder or under each of the Guaranty Agreements, the
Administrator shall cause the Trustee to pay to TERI the amount by which the
balance in the Pledged Account exceeds such product. The parties agree that the
approval of the Stress Factor by the rating agencies is dependent upon the types
of Loans purchased by the Owner at each closing under the Indenture.

         5. SECURITY INTEREST. TERI hereby pledges, assigns and sets over to the
Owner, as security for payment by TERI of the Secured Obligations (as
hereinafter defined), all of TERI's right, title and interest in and to (a) the
Pledged Account and all amounts on deposit or to be deposited therein as
described in Section 2 of this Agreement, including without limitation (i) any
and all Guaranty Fees previously paid by Loan Originators and currently held by
the Trustee in the Existing Pledged Account created under each of the Account
Security Agreements with respect to Loans purchased on any Closing Date as set
forth in each of the Security Agreements; (ii) any and all additional Guaranty
Fees with respect to such Loans purchased by the Owner, which fees will be
deposited into the Pledged Account on each Closing Date; and (iii) all
Recoveries, which Recoveries shall be remitted by or on behalf of TERI to the
Trustee on the 15th day of each month, for Recoveries received during the
preceding month, and (b) TERI's right to receive all Earnings. The foregoing
shall not be

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deemed to include a grant of security interest in defaulted Loans. In
furtherance thereof, TERI hereby grants to the Owner (and its assigns) a first
priority security interest in all of TERI's right, title and interest in and to
the following, to the extent they relate to Loans purchased by the Owner:

         (a) All personal property comprising and/or contained in the Pledged
Account, as provided in this Agreement, both tangible and intangible, whether
now owned or hereafter acquired by TERI and wheresoever located, including
without limitation:

                  (i) All contract rights, claims, instruments, notes and
accounts, whether now existing or hereafter arising, including, without
limitation, all of the same evidencing or representing indebtedness due or to
become due to TERI (all hereinafter called the "ACCOUNTS");

                  (ii) All funds and investments thereof, whether in the form of
certificates of deposit, repurchase agreements, U.S. Treasury Bills, U.S.
Treasury Notes, investment grade commercial paper, U.S. Treasury Bonds, Federal
agency notes or other investments, securities (whether certificated or
uncertificated and specifically including any securities which are purchased
through and for which records are maintained on a book entry system through any
financial intermediary (as defined in ss. 8-313 of the Uniform Commercial
Code)), payment intangibles and general intangibles, whether now existing or
hereafter arising and wheresoever located, or otherwise (all hereinafter called
the "INTANGIBLES");

                  (iii) All right, title and interest of TERI in or to all
instruments and documents covering or relating to the above described property,
including but not limited to, all books, records, computer printouts, tapes,
disks, ledger sheets, files and other data (all such instruments and documents
being called the "RELATED DOCUMENTS");

                  (iv) All interest, dividends and/or other earnings of any kind
which are paid with respect to or derived from the Pledged Account, and all
proceeds of any of the foregoing, and the present and continuing right to make
claim for, collect, receive and receipt for, any and all such interest,
dividends and/or other earnings; and

                  (v) All the proceeds of all of the foregoing;

         (b) All contract and other rights of TERI to receive payment of
Guaranty Fees, other than the TERI Guarantee Fee Entitlement, from the Owner
under each of the Guaranty Agreements; TERI's rights to receive Subsequent
Guarantee Fees from the Owner pursuant to such section, and any separate
undertaking or agreement by the Owner to pay such Subsequent Guarantee Fees;

         (c) All Recoveries and all rights of TERI to receive or collect
Recoveries; and

         (d) All proceeds of the foregoing.

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         All of the foregoing property in which the Owner has been granted a
security interest is herein collectively referred to as "COLLATERAL." It is
expressly understood and agreed that this security interest and assignment shall
automatically attach to any and all future deposits to, earnings from, and
proceeds of the Pledged Account immediately upon deposit or accrual, and all
Guaranty Fees and Recoveries immediately upon the receipt thereof, without the
making or doing of any further act or thing whatsoever. TERI shall promptly take
all further action, and execute and deliver to the Owner such other documents,
as may be requested from time to time by the Owner to create, evidence, maintain
and effect the Owner's security interest in the Pledged Account and the other
rights pledged hereunder.

         6. SECURED OBLIGATIONS. The security interest of the Owner under this
Agreement secures (a) the payment and performance of all indebtedness,
obligations and liabilities of TERI arising at any time, now or in the future,
to the Owner (or its assignees), pursuant to each of the Guaranty Agreements;
(b) performance by TERI of the agreements set forth in this Agreement; (c) all
payments made or expenses incurred by the Owner (or its assignees), including,
without limitation, reasonable attorney's fees and legal expenses, in the
exercise, preservation or enforcement of any of the rights, powers or remedies
of the Owner (or its assignees), or in the enforcement of the obligations of
TERI, under this Agreement or each of the Guaranty Agreements (whether or not
paid or incurred in the context of a state or federal bankruptcy, insolvency, or
reorganization proceeding); and (d) any renewals, continuations or extensions of
any of the foregoing (all of which are collectively referred to as the "SECURED
OBLIGATIONS").

         7. RESTRICTIONS ON THE PLEDGED ACCOUNT. TERI shall not (except as
provided in Sections 3(d)(ii) and (4)) be paid by the Owner any funds from or
further assign, pledge, or hypothecate the Pledged Account or any portion of the
Pledged Account to any individual, person, entity or other third party without
the express prior written consent of the Owner. Payments to TERI will be by wire
transfer unless TERI requests, in writing, another reasonable form of payment.

         8. DEFAULT. TERI shall be in default of this Agreement if TERI fails to
remit to the Owner from the Pledged Account or otherwise, in accordance with the
terms and provisions of the Guaranty Agreements, the principal balance
(including capitalized fees and interest) and accrued interest and late fees on
any Loan as to which a Guaranty Event (as defined in each of the Guaranty
Agreements) has occurred and as to which the conditions set forth in each of the
Guaranty Agreements to payment of a Guaranty Claim have been satisfied, and if
such failure continues for a period of thirty (30) days. Either TERI or the
Owner shall be in default of this Agreement if (a) any representation, warranty,
or statement made by such party in or pursuant to this Agreement or each of the
Guaranty Agreements is found to be false or erroneous in any material respect,
or (b) such party shall fail or omit to perform or observe any material covenant
or agreement made by it in this Agreement or each of the Guaranty Agreements,
and if such circumstance, failure or omission (if susceptible of cure) remains
uncured for thirty (30) days. Upon the occurrence of an event of default by
TERI, and while such default is continuing, the Owner shall cease disbursing any
funds at the request of TERI except to pay Guaranty Claims.

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         9. REMEDIES UPON DEFAULT. The Owner shall have all of the rights and
remedies of a secured party under the Massachusetts Uniform Commercial Code (as
the same may be amended from time to time), as well as all rights and remedies
provided by any other applicable law, at law, or in equity. Without limiting the
generality of the foregoing, the Administrator shall also have the right, during
the term of this Agreement, to do any or all of the following upon a default and
until any such default is cured:

         (a) ACCELERATION. Without any notice or demand, the Administrator may
declare any or all Secured Obligations then in default to be immediately due and
payable.

         (b) POSSESSION. Without notice, demand, or hearing, any right to which
is hereby waived by TERI, the Administrator shall have full power and authority
to hold, sequester, set-off or withdraw any and all funds from the Pledged
Account and to (i) direct such funds for application to any Loan as to which a
Guarantee Event has occurred and TERI has failed to remit the principal balance
(including capitalized fees and interest) and accrued interest and late fees
thereon in accordance with the terms and conditions of each of the Guaranty
Agreements or (ii) hold the funds in the Pledged Account without making any
disbursements of any kind to TERI as otherwise provided in this Agreement, and
to apply the funds to any Loan if and when a Guarantee Event occurs and TERI
fails to promptly remit to the Owner the unpaid principal balance (including
capitalized fees and interest) and accrued interest and late fees thereon in
accordance with the conditions of each of the Guaranty Agreements.

         (c) COLLECTION OF ACCOUNTS.

                  (i) TERI hereby constitutes and appoints the Administrator
(and upon assignment hereof, the Trustee) its true and lawful attorney (which
appointment is coupled with an interest), with full power of substitution,
either in the Administrator's own name or in the name of TERI, to ask for,
demand, sue for, collect, receive, receipt and give acquittance for, any and all
moneys due or to become due to TERI that are part of the Collateral; to endorse
checks, drafts, orders and other instruments for the payment of money payable to
TERI on account thereof, to settle, compromise, prosecute, or defend any action,
claim, or proceeding with respect thereto; and to sell, assign, pledge, transfer
and make any agreement respecting, or otherwise deal with, the same.

                  (ii) TERI agrees that all Recoveries shall be held by the
Owner to whatever extent may be necessary to facilitate full and complete
payment of all amounts owed under each of the Guaranty Agreements. All such
Recoveries received by TERI shall be remitted to the Trustee (properly endorsed
for collection where required), not later than the next Business Day, and
accompanied by EXHIBIT 2 and deposited in the Pledged Account, for the payment
of all of the Secured Obligations then in default. TERI agrees not to commingle
any such collections or proceeds with any of its other funds or property and
agrees to hold the same upon an express trust for the Owner until deposited in
the Pledged Account, as aforesaid.

                  (iii) The Administrator agrees to provide notice to TERI of
the Administrator's or Owner's exercise of any of its rights under this Section
9(c).

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         (d) TRANSFER OF INTANGIBLES. The Administrator shall have the right to
take possession of any agreement or other document evidencing any of the
Intangibles, and may apply for or seek, on behalf of and as attorney-in-fact for
TERI, any necessary consent to the assignment, transfer, conveyance, sale,
renewal, reissuance or other disposition of the same, and TERI shall cooperate
fully with the Administrator in doing so and shall take all actions reasonably
requested by the Administrator in furtherance thereof. TERI hereby constitutes
and appoints the Administrator its true and lawful attorney (which appointment
is coupled with an interest) with full power of substitution, either in the
Administrator's own name or in the name of TERI, to assign, transfer and convey,
subject to all requirements of law, any and all of TERI's rights in and to any
of the Intangibles.

         (e) DISPOSITION. The Administrator may assign, transfer, convey, any or
all of the Collateral, by public or private sale subject to TERI's rights to
retain a copy of each Related Document now or in the future in TERI's
possession. The Administrator shall provide TERI with reasonable written notice
of the time and place of any such sale.

         (f) PROCEEDS. All proceeds from the sale or other disposition of
Collateral by the Administrator under this Section 9 of this Agreement, and all
other moneys received by the Administrator pursuant to the terms of this
Agreement shall be applied as follows:

                  (i) First, to the payment of all expenses incurred by the
Administrator in connection with this Agreement or the exercise of any right or
remedy hereunder, or any sale or disposition, including, but not limited to the
expenses of taking, advertising, processing, preparing and storing the
Collateral to be sold, all court costs and the Administrator's reasonable legal
fees in connection therewith;

                  (ii) Second, to the payment of valid Guaranty Claims in
accordance with the terms thereof in the order in which a complete claim
(including all required documentation) is received, treating all claims received
the same day as received at the same time (if there are not sufficient funds in
the Pledged Account to pay all claims payable therefrom received on a given day,
all such claims shall be paid in part, pro rata, from the Pledged Account as
directed by the Administrator); and

                  (iii) Third, any remainder to be held pursuant to the terms of
this Agreement as continuing security for TERI's payment of the remaining
Secured Obligations.

         The Administrator shall apply any such proceeds, monies, or balances in
accordance with this Agreement promptly upon its receipt of the same. In respect
of any application pursuant to clause (ii) above, such proceeds, monies, or
balances shall be applied by the Administrator to discharge in whole or in part
any unpaid Secured Obligation, notwithstanding any manifestation of an intent to
the contrary expressed in writing or otherwise by TERI at any time. Upon any
sale of Collateral by the Administrator (whether pursuant to a power of sale
granted by a statute or under a judicial proceeding), the receipt of the
Administrator or of the officer making the sale shall be a sufficient discharge
to the purchaser or purchasers of the Collateral so sold and such purchaser or
purchasers shall not be obligated to see to the application of any part of the
purchase money paid over to the

                                       11
<PAGE>

Administrator or such officer, or be answerable in any way for the
misapplication thereof. Notwithstanding the sale or other disposition of any
Collateral by the Administrator hereunder, TERI shall remain liable for any
deficiency. Any Loan with respect to which the Owner receives payment in full
hereunder will forthwith be transferred to TERI on the terms and conditions set
forth in the Guaranty Agreements.

         10. REMEDIES CUMULATIVE. All rights, remedies, or powers conferred upon
the Owner herein or by law shall be cumulative and concurrent at the option of
the Administrator, and the Administrator may, to whatever extent is reasonably
necessary to cure any default, foreclose or exercise the power of sale or any
other remedy available to it successively upon any default or upon successive
defaults hereunder without the necessity of declaring all sums secured hereby to
be due and payable. Upon any such occasion, the Administrator shall be
authorized to sell or dispose of all or any such part of the Collateral as
provided in this Agreement or pursuant to the Indenture and as permitted by law.
The remaining Collateral shall continue as security for any other sums remaining
due after such sale, lease, or disposition or thereafter to become due or
payable on any of the Secured Obligations.

         11. PLEDGE BY THE OWNER; ROLE OF THE ADMINISTRATOR.

         (a) TERI acknowledges that the Owner has pledged all of its right,
title and interest under this Agreement and its interest in the Pledged Account
as collateral security to the Trustee pursuant to the Indenture. Pursuant to
such pledge, all rights of the Owner hereunder, subject to the limitations and
obligations of this Agreement, may be exercised by the Trustee, pursuant to the
terms of the Indenture. Subject to the terms and limitations of this Agreement,
the Administrator, on the Owner's behalf, in accordance with the Indenture,
shall request that the Trustee exercise the Owner's rights and obligations
hereunder, including, without limitation:

                  (i) The withdrawal of funds from the Pledged Account to pay
the Trustee, as assignee of the Loans, with respect to a Guaranty Claim pursuant
to Section 3(d)(i) hereof;

                  (ii) The withdrawal of funds pursuant to Section 3(d)(ii)
hereof;

                  (iii) The investment of funds in the Pledged Account in
Eligible Investments as directed by TERI from time to time;

                  (iv) The exercise of the remedies of the Owner on default by
TERI under Section 9.

         (b) The Owner hereby directs TERI to pay all sums intended to be placed
in the Pledged Account, including, without limitation, all future Recoveries,
directly to the Trustee. The Pledged Account shall be maintained and funds held
therein shall be invested by the Trustee in Eligible Investments pursuant to and
in accordance with the Indenture. Funds held in the Pledged Account in the form
of bank deposits shall be deposited only with institutions that are federally
insured.

                                       12
<PAGE>

         (c) The Trustee and the holders of the notes authenticated and
delivered pursuant to the Indenture, are intended third-party beneficiaries of
this Agreement, with rights to enforce the Owner's interests in the same. Such
third-party beneficiaries are not parties hereto and incur no liabilities
hereunder.

         (d) The Administrator has been appointed to act for the Owner in
connection with the transactions contemplated by the Indenture. The
Administrator has the power and authority to take any action and give any notice
required or permitted by the Owner hereunder and TERI may deal with
Administrator as if it were dealing with the Owner. Any notice required to be
given to the Owner by TERI shall also be given to Administrator. The
Administrator will request instructions from the Indenture Trustee on behalf of
the Noteholders for any non-ministerial action that the Administrator is
required to take under this Agreement.

         12. POSSESSION OF COLLATERAL. Throughout the term of this Agreement,
possession of the Collateral shall be maintained by the Trustee, or its agent or
nominee (if the Trustee so chooses from time to time), as necessary and
appropriate to perfect the Owner's, and, while the Indenture is in effect, the
Trustee's security interest therein as provided in, and subject to the terms of,
this Agreement. Upon termination of the Indenture and satisfaction in full of
all debt secured thereby and release of the Pledged Account to the Owner, the
Administrator may designate an alternative collateral agent to hold the Pledged
Account.

         13. TERMINATION OF SECURITY INTERESTS. This Agreement and the security
interests under this Agreement shall terminate when all amounts due and owing on
account of, and all obligations and liabilities of TERI in respect of, the
Secured Obligations shall have been fully performed, satisfied and paid as
provided in this Agreement and the Guaranty Agreements. At such time, the
Administrator shall promptly reassign and deliver to TERI, without recourse or
representation, against TERI's receipt, all Collateral then held by the Owner or
anyone claiming by, through or under the Owner. TERI shall execute and if
necessary deliver to the Administrator for execution, and the Administrator
shall promptly cause to be filed at the Owner's expense, termination statements
in respect of any financing statements filed under this Agreement. The
Administrator agrees to fulfill the Owner's obligations to file such termination
statements at its own cost and expense. The security interests hereunder shall
terminate as to all Collateral lawfully withdrawn by or paid to TERI hereunder,
upon the occurrence of such withdrawal or payment.

         14. REPRESENTATIONS AND WARRANTIES.

         (a) Each party, with respect to itself, represents and warrants that:

                  (i) The making and performance of this Agreement and the
activities contemplated hereby have been duly authorized by all necessary action
and do not and will not:

                                       13
<PAGE>

                           (A) Violate any provision of law, or any regulation,
order, decree, writ or injunction, or any provision of such party's charter,
bylaws, or any other organizing document; or

                           (B) Violate or result in the breach of, or constitute
a default or require any consent under, any agreement or instrument by which it
or any of its property may be bound or affected.

                  (ii) This Agreement is the legal, valid and binding obligation
of such party, enforceable in accordance with the terms hereof.

                  (iii) There is no pending or threatened litigation that would,
if resolved adversely to such party, adversely impact such party's ability to
perform any of its obligations under this Agreement or each of the Guaranty
Agreements.

         (b) TERI represents and warrants that:

                  (i) Except for the security interests of the Owner created
under this Agreement, TERI is and will be the owner of the Collateral, whenever
acquired or arising, free and clear of all liens, security interests, claims,
encumbrances, charges, set-offs, defenses and counterclaims;

                  (ii) This Agreement creates a valid and continuing security
interest (as defined in the applicable Uniform Commercial Code ("UCC") in effect
in the State of Massachusetts) in the Collateral in favor of the Owner, which
security interest is prior to all other liens, charges, security interests,
mortgages or other encumbrances, and is enforceable as such as against creditors
of and purchasers from TERI;

                  (iii) The Collateral constitutes a "deposit account" or
"investment property" within the meaning of the applicable UCC, except to the
extent that the Collateral constitutes Recoveries, in which case, the Collateral
is "payment intangibles" and cash.

                  (iv) TERI has caused or will have caused, within ten days, the
filing of all appropriate financing statements in the proper filing office in
the appropriate jurisdictions under applicable law in order to perfect the
security interest in the Collateral granted to the Owner hereunder.

                  (v) Other than the security interest granted to the Owner
pursuant to this Agreement, TERI has not pledged, assigned, sold, granted a
security interest in, or otherwise conveyed any of the Collateral. TERI has not
authorized the filing of and is not aware of any financing statements against
TERI that include a description of collateral covering the Collateral other than
any financing statement relating to the security interest granted to the Owner
hereunder or that has been terminated. TERI is not aware of any judgment or tax
lien filings against TERI.

                                       14
<PAGE>

The foregoing representations and warranties in this Section 14(b) shall
continue in full force and effect until termination of this Agreement.

         (c) The foregoing representations and warranties are subject to (i) the
exercise of judicial discretion in accordance with the general principles of
equity; (ii) the valid exercise of the police powers of the several states of
the United States of America and of the constitutional powers of the United
States of America and (iii) bankruptcy, insolvency, reorganization, moratorium
or similar laws affecting creditor's rights generally.

         15. COVENANTS OF TERI. TERI agrees and covenants with the Owner as
follows:

         (a) MAINTENANCE AND USE OF COLLATERAL. TERI shall not permit the
Collateral to be used in violation of any of the Guaranty Agreements or this
Agreement.

         (b) TAXES. TERI shall, if so obligated, pay and discharge when due all
taxes, assessments, license or permit fees, levies and other charges upon the
Collateral, and TERI shall, if so obligated, also pay and discharge when due all
other taxes, levies, or assessments relating to its business which, if unpaid,
might give rise to any penalty, security interest, lien, charge, levy,
assessment, or encumbrance in, on or against the Collateral. The Collateral and
all income and/or proceeds of the Collateral shall be, and be treated by TERI as
being, the property of TERI, subject to the pledge and security interest created
hereunder, and TERI shall report the Collateral and all such proceeds as its
sole property until, unless and except to the extent any of the Collateral is
paid and transferred pursuant to each of the Guaranty Agreements and this
Agreement.

         (c) NO ENCUMBRANCE. Except as otherwise expressly permitted in this
Agreement, TERI shall not sell, assign, transfer, pledge, hypothecate, or
otherwise dispose of or encumber any of the Collateral or any interest therein
until all of the Secured Obligations are fully satisfied. TERI shall protect and
defend the Collateral from and against any and all claims, demands, or legal
proceedings brought or asserted by any party other than the Trustee.

         (d) MAINTENANCE OF SECURITY INTEREST. TERI agrees that it shall do all
things necessary to preserve and maintain the security interests of the Owner
under this Agreement and Indenture as a first priority lien in the Collateral
and shall not permit the creation of any other lien, charge, security interest,
or encumbrance in the Collateral. TERI agrees that it shall execute and if
necessary deliver to the Trustee for execution, and the Administrator agrees to
file or record (at its own cost and expense), such notices, financing
statements, continuation statements, certificates of title and other documents,
and TERI shall deliver to the Trustee upon request therefor such securities,
agreements, writings, documents, certificates, instruments, or other
intangibles, as the Trustee reasonably deems necessary from time to time to
perfect and maintain the perfection of the security interests of the Trustee
under this Agreement. The Trustee or the Administrator shall have the right to
file this Agreement and any financing statement reflecting the content of this
Agreement for record in any governmental office.

                                       15
<PAGE>

         (e) RECORDS, STATEMENTS AND RELATED DOCUMENTS. TERI agrees:

                  (i) When reasonably requested to do so by the Administrator,
to prepare and deliver to the Administrator a schedule in form satisfactory to
the Administrator, certified by an authorized officer of TERI, listing all
Collateral and the location thereof; and

                  (ii) To keep accurate and complete records at all times in
respect of the Collateral and to deliver to the Administrator copies of such
records and such other information regarding the Collateral which the
Administrator may reasonably request.

         (f) LOCATION. The principal office of TERI is located at 31 St. James
Avenue, Boston, Massachusetts 02116, and all books of account and records
relating to the collateral and TERI's business are located at TERI's principal
office. TERI shall not, without giving the Administrator at least ten (10) days
prior written notice, change the location of any of the Collateral or the
location at which it does business, including, without limitation, the location
at which any books of account or records relating to the Collateral and TERI's
business are kept.

         (g) NOTICE. TERI shall promptly notify the Owner of any change in
TERI's name or its jurisdiction of organization or any physical loss,
destruction, or damage to any material portion of the Collateral. TERI shall
also promptly notify the Owner of any default hereunder. In the event of a name
change or change in its jurisdiction of organization, TERI shall take such
actions, if any, as shall be necessary to maintain the security interests of the
Owner hereunder.

         (h) FURTHER INFORMATION. TERI shall execute and deliver, or cause to be
executed and delivered, to the Trustee (and to any other financial institution
holding the Pledged Account), in a form satisfactory to the Trustee (or such
other institution), TERI's certification of its tax identification number and
such other documents as the Trustee shall reasonably request to perform its
obligations hereunder.

         (i) NON-PETITION. TERI shall not at any time prior to one year and one
day after all outstanding obligations of the Trust are paid under the Indenture
institute against the Owner any bankruptcy proceeding under the Bankruptcy Code
or any state bankruptcy or similar law in connection with any obligations of the
Owner under this Agreement. The Administrator shall not at any time prior to one
year and one day after all outstanding obligations of the Trust are paid under
the Indenture institute against the Owner any bankruptcy proceeding under the
Bankruptcy Code or any state bankruptcy or similar law in connection with any
obligations of the Owner under this Agreement.

         16. WAIVER. No delays or omissions by any party hereto in exercising or
enforcing any of its respective rights, remedies, powers, privileges and
discretions ("RIGHTS AND REMEDIES") shall operate as or constitute a waiver of
any such Rights and Remedies. No waiver by a party of any default under this
Agreement or each of the Guaranty Agreements shall operate as a waiver of any
other default under this Agreement. No single or partial exercise by a party of
any of its Rights and Remedies shall preclude the other of further

                                       16
<PAGE>

exercise of such Rights and Remedies. No waiver or modification of a party's
Rights and Remedies on any one occasion shall be deemed a waiver on any
subsequent occasion, nor shall it be deemed a continuing waiver. All Rights and
Remedies shall be cumulative and not alternative or exclusive, and a party may
exercise any such Rights and Remedies at such time or times and in such order of
preference as that party in its sole discretion may determine.

         17. COUNTERPARTS. This Agreement may be executed in multiple
counterparts, each of which shall be deemed an original, but all of which shall
together be deemed a single agreement.

         18. CONFIDENTIALITY. The parties acknowledge that this Agreement
contains confidential information and agree not to disclose any of the terms and
conditions relating to this Agreement and the Pledged Account without the prior
express written consent of the others. The provisions of the foregoing sentence
to the contrary notwithstanding, any such information may be disclosed (a) to
any employees, officers, directors or representatives of the parties to effect
the purpose of the Student Loan Program; (b) by TERI and the Administrator to
the affiliates and agents of either of them, and other third parties, to
effectuate this Agreement, provided that such parties are under a corresponding
written obligation to maintain the confidentiality of the Owner's information;
and (c) to the attorneys and accountants of the parties on a confidential basis.
This provision shall, further, not be construed to prohibit the disclosure of
any information relating to this Agreement (i) that is now or in the future
becomes public information, (ii) as may be required by applicable law or this
Agreement, each of the Guaranty Agreements or the Indenture, (iii) to the
underwriters and rating agencies, their employees, trustees and attorneys and to
such others as the Administrator may determine necessary (including regulators
and potential investors in a private or public offering) in connection with the
sale, securitization or other financing of any of the Loans, (iv) in any private
placement memorandum in connection with the sale, securitization or other
financing of any of the Loans, and (v) as necessary to perfect or enforce the
security interest in the Collateral granted hereunder. Nothing in this Agreement
shall limit or restrict TERI, the Administrator, or any affiliate of the
Administrator (A) in their exchange and use of information as among them, to the
extent such exchange or use is governed by other agreements; or (B) from using,
manipulating, sharing and disclosing Loan information that has been
de-identified so that the identity of the borrower, the lender, or the holder of
a Loan (including but not limited to the Owner and Trustee) cannot be
determined.

         19. CHOICE OF LAW. This Agreement shall be governed and construed in
accordance with Massachusetts law, without regard to principles of conflict of
laws.

         20. SEVERABILITY. If at any time one or more provisions of this
Agreement is or becomes invalid, illegal or unenforceable in whole or in part,
the validity, legality and enforceability of the remaining provisions shall not
in any way be affected or impaired thereby.

         21. ASSIGNMENT. This Agreement may not be assigned by any party without
the others' prior express written consent. Pursuant to Section 11, this
Agreement and the

                                       17
<PAGE>

Owner's rights hereunder may be assigned by the Owner as collateral security to
the Trustee, and the Trustee and certain other persons are intended
beneficiaries of this Agreement.

         22. HEADINGS. The section headings used in this Agreement are for
convenience of reference only and are not to affect the construction or to be
taken into consideration in interpreting this Agreement.

         23. AMENDMENT. This Agreement may be amended or modified only by the
written agreement of TERI, the Owner, the Administrator and while the Indenture
remains in effect, the prior written consent of the Trustee.

         24. NOTICES. All notices under this Agreement shall be sent by any
means requiring receipt signature, or if by facsimile confirmed by first-class
mail, postage or other delivery charge prepaid to

TERI:
-----

The Education Resources Institute, Inc.
31 St. James Avenue
Boston, MA 02116
Attention:  President

THE TRUSTEE:
-----------

U.S. Bank National Association
Corporate Trust Services-SFS
One Federal Street, 3rd Floor
Boston, MA 02110
Attention:  Vaneta Bernard

THE ADMINISTRATOR OR THE OWNER:
------------------------------

First Marblehead Data Services, Inc.
230 Park Avenue, 10th Floor
New York, NY 10169
Attention:  _____________________

with a copy to:

Richard P. Hackett, Esq.
Pierce Atwood
One Monument Square
Portland, ME 04101

         Any party may, by notice to the other parties in accordance with this
section, designate a different address for notices thereafter under this
Agreement.

                                       18
<PAGE>

         25. NON-BUSINESS DAYS. Any action required or permitted to be taken or
done hereunder on a day which is not a business day in Boston, Massachusetts may
be taken or done on the next business day with the same effect as if taken or
done on such non-business day.

         26. ROLE OF THE OWNER TRUSTEE. It is expressly understood and agreed by
the parties hereto that (a) this Agreement is executed and delivered by
_______________ ("[OWNER TRUSTEE]"), not individually or personally but solely
as trustee of the Owner in the exercise of the powers and authority conferred
and vested in it, (b) each of the representations, undertakings and agreements
herein made on the part of the Owner is made and intended not as personal
representations, undertakings and agreements by [OWNER TRUSTEE] but is made and
intended for the purpose for binding only the Owner, (c) nothing herein
contained shall be construed as creating any liability on [OWNER TRUSTEE],
individually or personally, to perform any covenant either expressed or implied
contained herein, all such liability, if any, being expressly waived by the
parties hereto and by any Person claiming by, through or under the parties
hereto and (d) under no circumstances shall [OWNER TRUSTEE] be personally liable
for the payment of any indebtedness or expenses of the Owner or be liable for
the breach or failure of any obligation, representation, warranty or covenant
made or undertaken by the Owner under this Agreement or any other document.

                                       19
<PAGE>

         IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be
executed by their respective officers, being first duly authorized, as of the
day and year first above written.

                                                  THE EDUCATION RESOURCES
                                                  INSTITUTE, INC.

                                                  By:__________________________
                                                     Name:
                                                     Title:

                                                  FIRST MARBLEHEAD DATA
                                                  SERVICES, INC.

                                                  By:__________________________
                                                     Name:
                                                     Title:

                                                  THE NATIONAL COLLEGIATE
                                                  STUDENT LOAN TRUST 20____-___

                                                  By: ___________________,
                                                  acting solely as Owner Trustee
                                                  and not in its individual
                                                  capacity

                                                  By:__________________________
                                                     Name:
                                                     Title:

<PAGE>

                   SCHEDULES TO DEPOSIT AND SECURITY AGREEMENT

Schedule A - Student Loan Programs

Schedule B - Loan Originators, Guaranty Agreements, Student Loan Purchase
Agreements and Account Security Agreements

                   EXHIBITS TO DEPOSIT AND SECURITY AGREEMENT

Exhibit 1 - Payment of Guaranty Claims Direction Letter

Exhibit 2 - Remittance of Guaranty Fees and/or Recoveries Letter

Exhibit 3 - [intentionally omitted]

Exhibit 4 - [intentionally omitted]

Exhibit 5 - Withdrawal Request

Exhibit 6 - Guaranty Agreements

<PAGE>

                                   SCHEDULE A

                              STUDENT LOAN PROGRAMS

<PAGE>

                                   SCHEDULE B
  LOAN ORIGINATORS, GUARANTY AGREEMENTS, STUDENT LOAN PURCHASE AGREEMENTS AND
                          ACCOUNT SECURITY AGREEMENTS

<PAGE>

II. GUARANTY AGREEMENTS. Each of the following Guaranty Agreements, as amended
or supplemented, was entered into by and between TERI and:

<PAGE>

III. STUDENT LOAN PURCHASE AGREEMENTS. Each of the Student Loan Purchase
Agreements, as amended or supplemented, was entered into by and among The First
Marblehead Corporation, the Owner and:

<PAGE>

V. ACCOUNT SECURITY AGREEMENTS. Each of the following Deposit and Security
Agreements, as amended or supplemented, was entered into by and among TERI, The
First Marblehead Corporation, the Trustee and:

<PAGE>

                                    EXHIBIT 1

                   PAYMENT OF GUARANTY CLAIMS DIRECTION LETTER

                                [TERI LETTERHEAD]

FIRST MARBLEHEAD DATA SERVICES, INC.
230 PARK AVENUE, 10TH FLOOR
NEW YORK, NY 10169

WITH A COPY TO:

U.S. BANK NATIONAL ASSOCIATION
CORPORATE TRUST SERVICES-SFS
ONE FEDERAL STREET, 3RD FLOOR
BOSTON, MA 02110

Re:  TERI/NCT Pledged Account  #

Ladies and Gentlemen:

         Reference is made to (i) the Deposit and Security Agreement (the
"AGREEMENT"), dated as of ___________, 20____, by and among THE EDUCATION
RESOURCES INSTITUTE, INC. ("TERI"), FIRST MARBLEHEAD DATA SERVICES, INC. and THE
NATIONAL COLLEGIATE STUDENT LOAN TRUST 20____-____. Capitalized terms used and
not otherwise defined herein have the respective meanings ascribed to such terms
in the Agreement.

         In accordance with the Agreement, please remit $___________________ in
Guarantee Claims to

U.S. Bank National Association
ABA # [_______________]
Corporate Trust Department
DDA A/C# [____________]
Attention: [__________________________]Collateral Proceeds Acct.
SEI#: [________________]

         In addition, please fax this direction letter along with the attached
breakdown, which lists the Loan(s), associated with the above-referenced claim
funds to:

         [OWNER] Attention:   [Name];  and      [SERVICER] Attention:  [Name]:
         Fax Number: ____________               Fax Number:___________________

Please contact me at [TERI CONTACT TELEPHONE NUMBER] should you have any
questions regarding this request.

                                                     Authorized Signature
                                                     TERI

Enc

<PAGE>

                                    EXHIBIT 2

                                RECOVERIES LETTER

                                [TERI LETTERHEAD]

FIRST MARBLEHEAD DATA SERVICES, INC.
230 PARK AVENUE, 10TH FLOOR
NEW YORK, NY 10169

WITH A COPY TO:

U.S. BANK NATIONAL ASSOCIATION
CORPORATE TRUST SERVICES-SFS
ONE FEDERAL STREET, 3RD FLOOR
BOSTON, MA 02110

Re:  TERI/NCT Pledged Account #

Ladies and Gentlemen:

         Reference is made to the Deposit and Security Agreement (the
"AGREEMENT"), dated as of ____________, 20____, by and among THE EDUCATION
RESOURCES INSTITUTE, INC., ("TERI"), FIRST MARBLEHEAD DATA SERVICES, INC. and
THE NATIONAL COLLEGIATE STUDENT LOAN TRUST 20____-____. Capitalized terms used
and not otherwise defined herein have the respective meanings ascribed to such
terms in the Agreement.

         In accordance with the Agreement, the following amounts will be wired
to the Pledged Account:

1.  $____________________ Total Guaranty Fees*

                  *ATTACHED IS A LIST OF EACH LOAN NAME, LOAN NUMBER AND AMOUNT
                  ASSOCIATED WITH THIS GUARANTY FEE REMITTANCE.

2.  $____________________ Total Recovery**

                  ** ATTACHED IS A LIST OF EACH LOAN NAME, LOAN NUMBER AND
                  AMOUNT ASSOCIATED WITH THIS RECOVERY REMITTANCE.

     $_____________________ Total Amount wired to the Trustee

<PAGE>

The above-referenced funds will be wired to the Trustee using the following wire
instruction:

                                 U.S. BANK NATIONAL ASSOCIATION
                                 BOSTON, MA 02110
                                 ABA # [_______________]
                                 A/C# [_______________]
                                 PLEDGED ACCOUNT
                                 SEI ###### - 000

Please contact me at [TERI CONTACT TELEPHONE NUMBER] should you have any
questions regarding this request.

Authorized Signature
[TERI]

<PAGE>

                                    EXHIBIT 5

          REQUEST FOR REIMBURSEMENT OF INCOME TAX OR OTHER TAX AMOUNTS

                                [TERI LETTERHEAD]

U.S. BANK NATIONAL ASSOCIATION
CORPORATE TRUST SERVICES-SFS
ONE FEDERAL STREET, 3RD FLOOR
BOSTON, MA 02110

FIRST MARBLEHEAD DATA SERVICES, INC.
230 PARK AVENUE, 10TH FLOOR
NEW YORK, NY 10169

Re:  TERI/NCT Pledged Account  #

Ladies and Gentlemen:

         Reference is made to (i) the Deposit and Security Agreement (the
"AGREEMENT"), dated as of ____________, 20____, by and among THE EDUCATION
RESOURCES INSTITUTE, INC., ("TERI"), FIRST MARBLEHEAD DATA SERVICES, INC. and
THE NATIONAL COLLEGIATE STUDENT LOAN TRUST 20____-____. Capitalized terms used
and not otherwise defined herein have the respective meanings ascribed to such
terms in the Agreement.

         In accordance with Section 3(d)(ii) of the Agreement, this is to inform
you that TERI has been assessed and has paid the sum of
$______________________________ in income or excise taxes with respect to income
earned on the Pledged Account. We hereby request reimbursement of such amount to
be sent as follows:

PLEASE USE THE FOLLOWING WIRE INSTRUCTIONS:

[Bank Name]

[Bank Location]

ABA #

A/C#

ATTENTION:   TERI

Comments:

         In accordance with the Agreement, we are forwarding a copy of this
request to the Owner and the Trustee. We have also enclosed documentation to
support this request.

         Please contact me at [TERI CONTACT TELEPHONE NUMBER] should you have
any questions regarding this request.

                                                     Authorized Signature
                                                     TERI
Enc

<PAGE>

                                    Exhibit 6

                         [Copies of Guaranty Agreements]<PAGE>
                                                                   EXHIBIT 10.25

                                 PACKETEER, INC.
                        1999 EMPLOYEE STOCK PURCHASE PLAN
                        ---------------------------------

                      AS AMENDED AND RESTATED JULY 16, 2003

     I.   PURPOSE OF THE PLAN

          This Employee Stock Purchase Plan is intended to promote the interests
of Packeteer, Inc., a Delaware corporation, by providing eligible employees with
the opportunity to acquire a proprietary interest in the Corporation through
participation in a payroll-deduction based employee stock purchase plan designed
to qualify under Section 423 of the Code.

          Capitalized terms herein shall have the meanings assigned to such
terms in the attached Appendix.

     II.  ADMINISTRATION OF THE PLAN

          The Plan Administrator shall have full authority to interpret and
construe any provision of the Plan and to adopt such rules and regulations for
administering the Plan as it may deem necessary in order to comply with the
requirements of Code Section 423. Decisions of the Plan Administrator shall be
final and binding on all parties having an interest in the Plan.

     III. STOCK SUBJECT TO PLAN

          A.   The stock purchasable under the Plan shall be shares of
authorized but unissued or reacquired Common Stock, including shares of Common
Stock purchased on the open market. The number of shares of Common Stock
initially reserved for issuance over the term of the Plan shall be limited to
500,000 shares.

          B.   The number of shares of Common Stock available for issuance under
the Plan shall automatically increase on the first trading day of January each
calendar year during the term of the Plan, beginning with calendar year 2000, by
an amount equal to two percent (2%) of the total number of shares of Common
Stock outstanding on the last trading day in December of the immediately
preceding calendar year, but in no event shall any such annual increase exceed
1,000,000 shares.

          C.   Should any change be made to the Common Stock by reason of any
stock split, stock dividend, recapitalization, combination of shares, exchange
of shares or other change affecting the outstanding Common Stock as a class
without the Corporation's receipt of consideration, appropriate adjustments
shall be made to (i) the maximum number and class of securities issuable under
the Plan, (ii) the maximum number and class of securities purchasable per
Participant on any one Purchase Date, (iii) the maximum number and class of
securities purchasable by all Participants in the aggregate on any one Purchase
Date, (iv) the maximum number and/or class of securities by which the share
reserve is to increase automatically each calendar year pursuant to the
provisions of Section III.B of this Article One and (v) the number

<PAGE>

and class of securities and the price per share in effect under each outstanding
purchase right in order to prevent the dilution or enlargement of benefits
thereunder.

     IV.  OFFERING PERIODS

          A.   Shares of Common Stock shall be offered for purchase under the
Plan through a series of successive offering periods until such time as (i) the
maximum number of shares of Common Stock available for issuance under the Plan
shall have been purchased or (ii) the Plan shall have been sooner terminated.

          B.   Each offering period shall be of such duration (not to exceed
twenty-four (24) months) as determined by the Plan Administrator prior to the
start date of such offering period. However, the initial offering period shall
commence at the Effective Time and terminate on the last business day in July
2001. The next offering period shall commence on the first business day in
August 2001, and subsequent offering periods shall commence as designated by the
Plan Administrator.

          C.   Each offering period shall be comprised of a series of one or
more successive Purchase Intervals. Purchase Intervals shall run from the first
business day in February to the last business day in July each year and from the
first business day in August each year to the last business day in January in
the following year. However, the first Purchase Interval in effect under the
initial offering period shall commence at the Effective Time and terminate on
the last business day in January 31, 2000.

          D.   Should the Fair Market Value per share of Common Stock on the
next business day following any Purchase Date (the "Subject Purchase Date"),
other than the last Purchase Date within an offering period, be less than the
Fair Market Value per share of Common Stock on any Semi-Annual Entry Date within
that offering period (including the start date of the offering period), then
each Participant whose participation in that offering period commenced on such
Semi-Annual Entry Date (the "Subject Entry Date") shall automatically be deemed
to have (i) terminated in accordance with Section VII.F(i) his or her
outstanding purchase right immediately following the purchase of shares of
Common Stock on the Subject Purchase Date and (ii) enrolled and been granted a
purchase right in a new offering period commencing on such next business day
following the Subject Purchase Date. Unless a shorter duration is established by
the Plan Administrator within five (5) business days following the start date of
the new offering period, the new offering period shall have a duration equal to
(i) twenty-four (24) months if the Subject Entry Date was the start date of the
old offering period or (ii) the number of Purchase Intervals that remained
following the Subject Purchase Date in the old offering period if the Subject
Entry Date was other than the start date of the old offering period. Any payroll
deductions of a Participant enrolled in a new offering period in accordance with
this Section which were withheld on or before the Subject Purchase Date and not
applied to the purchase of shares of Common Stock on the Subject Purchase Date
(unless such unapplied amount was insufficient to purchase a whole share of
Common Stock) shall be promptly

                                       2
<PAGE>

refunded. This Section shall be effective for each offering period commencing on
or after July 16, 2003.(1)

     V.   ELIGIBILITY AND ENROLLMENT

          A.   Each individual who is an Eligible Employee on the start date of
any offering period under the Plan may enter that offering period on such start
date or on any subsequent Semi-Annual Entry Date within that offering period,
provided he or she remains an Eligible Employee.

          B.   Each individual who first becomes an Eligible Employee after the
start date of an offering period may enter that offering period on any
subsequent Semi-Annual Entry Date within that offering period on which he or she
is an Eligible Employee.

          C.   The date an individual enters an offering period shall be
designated his or her Entry Date for purposes of that offering period.

          D.   To participate in the Plan for a particular offering period, an
Eligible Employee must complete the enrollment forms prescribed by the Plan
Administrator (including a stock purchase agreement and a payroll deduction
authorization) and file such forms with the Plan Administrator (or its designee)
on or before his or her scheduled Entry Date. Each Eligible Employee who has
become a Participant shall automatically participate in the next offering period
commencing immediately after the final Purchase Date of each offering period in
which the Participant participates, provided that the Participant remains an
Eligible Employee on the start date of the new offering period and has not
terminated his or her purchase right as provided in Section VII.F. A Participant
who may automatically participate in a subsequent offering period as provided in
this Section is not required to deliver any additional enrollment form or stock
purchase agreement for the subsequent offering period in order to continue
participation in the Plan. However, a Participant may deliver a new enrollment
form for a subsequent offering period in accordance with the procedures set
forth in Section VI if the Participant desires to change any of the elections
contained in the Participant's then effective enrollment form.

     VI.  PAYROLL DEDUCTIONS

          A.   The payroll deduction authorized by the Participant for purposes
of acquiring shares of Common Stock during an offering period may be any
multiple of one percent (1%) of the Cash Compensation paid to the Participant
during each Purchase Interval within that offering period, up to a maximum not
to exceed fifteen percent (15%). The Plan Administrator shall designate the
maximum payroll deduction in effect under the Plan prior to the start of any
Purchase Interval; if no designation is made, the maximum shall be fifteen
percent (15%) of Cash Compensation. The deduction rate so authorized by the
Participant shall continue in effect throughout the offering period, except to
the extent such rate is changed in accordance with the following guidelines:

--------------------
(1)  Section IV.D of the Plan as in effect prior to July 16, 2003 shall apply to
each offering period having a start date prior to such date.

                                       3
<PAGE>

               (i)  The Participant may, at any time during the offering period,
     reduce his or her rate of payroll deduction to become effective as soon as
     possible after filing the appropriate form with the Plan Administrator. The
     Participant may not, however, effect more than one (1) such reduction per
     Purchase Interval.

               (ii) The Participant may, prior to the commencement of any new
     Purchase Interval within the offering period, increase the rate of his or
     her payroll deduction by filing the appropriate form with the Plan
     Administrator. The new rate (which may not exceed the fifteen percent (15%)
     maximum) shall become effective on the start date of the first Purchase
     Interval following the filing of such form.

          B.   Payroll deductions shall begin on the first pay day
administratively feasible following the Participant's Entry Date into the
offering period and shall (unless sooner terminated by the Participant) continue
through the pay day ending with or immediately prior to the last day of that
offering period. The amounts so collected shall be credited to the Participant's
book account under the Plan, but no interest shall be paid on the balance from
time to time outstanding in such account. The amounts collected from the
Participant shall not be required to be held in any segregated account or trust
fund and may be commingled with the general assets of the Corporation and used
for general corporate purposes.

          C.   Payroll deductions shall automatically cease upon the termination
of the Participant's purchase right in accordance with the provisions of the
Plan.

          D.   The Participant's acquisition of Common Stock under the Plan on
any Purchase Date shall neither limit nor require the Participant's acquisition
of Common Stock on any subsequent Purchase Date, whether within the same or a
different offering period.

     VII. PURCHASE RIGHTS

          A.   GRANT OF PURCHASE RIGHT. A Participant shall be granted a
separate purchase right for each offering period in which he or she
participates. The purchase right shall be granted on the Participant's Entry
Date into the offering period and shall provide the Participant with the right
to purchase shares of Common Stock, in a series of successive installments over
the remainder of such offering period, upon the terms set forth below. The
Participant shall execute a stock purchase agreement embodying such terms and
such other provisions (not inconsistent with the Plan) as the Plan Administrator
may deem advisable.

          Under no circumstances shall purchase rights be granted under the Plan
to any Eligible Employee if such individual would, immediately after the grant,
own (within the meaning of Code Section 424(d)) or hold outstanding options or
other rights to purchase, stock possessing five percent (5%) or more of the
total combined voting power or value of all classes of stock of the Corporation
or any Corporate Affiliate.

          B.   EXERCISE OF THE PURCHASE RIGHT. Each purchase right shall be
automatically exercised in installments on each successive Purchase Date within
the offering period, and shares of Common Stock shall accordingly be purchased
on behalf of each

                                       4
<PAGE>

Participant on each such Purchase Date. The purchase shall be effected by
applying the Participant's payroll deductions for the Purchase Interval ending
on such Purchase Date to the purchase of whole shares of Common Stock at the
purchase price in effect for the Participant for that Purchase Date.

          C.   PURCHASE PRICE. The purchase price per share at which Common
Stock will be purchased on the Participant's behalf on each Purchase Date within
the offering period shall be equal to eighty-five percent (85%) of the lower of
(i) the Fair Market Value per share of Common Stock on the Participant's Entry
Date into that offering period or (ii) the Fair Market Value per share of Common
Stock on that Purchase Date.

          D.   NUMBER OF PURCHASABLE SHARES. The number of shares of Common
Stock purchasable by a Participant on each Purchase Date during the offering
period shall be the number of whole shares obtained by dividing the amount
collected from the Participant through payroll deductions during the Purchase
Interval ending with that Purchase Date by the purchase price in effect for the
Participant for that Purchase Date. However, the maximum number of shares of
Common Stock purchasable per Participant on any one Purchase Date shall not
exceed 1,000 shares, subject to periodic adjustments in the event of certain
changes in the Corporation's capitalization. In addition, the maximum aggregate
number of shares of Common Stock purchasable by all Participants on any one
Purchase Date shall not exceed 200,000 shares, subject to periodic adjustments
in the event of certain changes in the Corporation's capitalization. However,
the Plan Administrator shall have the discretionary authority, exercisable prior
to the start of any offering period under the Plan, to increase or decrease the
limitations to be in effect for the number of shares purchasable per Participant
and in the aggregate by all Participants on each Purchase Date during that
offering period.

          E.   EXCESS PAYROLL DEDUCTIONS. Any payroll deductions not applied to
the purchase of shares of Common Stock on any Purchase Date because they are not
sufficient to purchase a whole share of Common Stock shall be held for the
purchase of Common Stock on the next Purchase Date. However, any payroll
deductions not applied to the purchase of Common Stock by reason of the
limitation on the maximum number of shares purchasable per Participant or in the
aggregate on the Purchase Date shall be promptly refunded.

          F.   TERMINATION OF PURCHASE RIGHT. The following provisions shall
govern the termination of outstanding purchase rights:

                    (i)  A Participant may, at any time prior to the next
     scheduled Purchase Date in the offering period, terminate his or her
     outstanding purchase right by filing the appropriate form with the Plan
     Administrator (or its designate), and no further payroll deductions shall
     be collected from the Participant with respect to the terminated purchase
     right. Any payroll deductions collected during the Purchase Interval in
     which such termination occurs shall, at the Participant's election, be
     immediately refunded or held for the purchase of shares on the next
     Purchase Date. If no such election is made at the time such purchase right
     is terminated, then the payroll deductions collected with respect to the
     terminated right shall be refunded as soon as possible.

                                       5
<PAGE>

                    (ii) The termination of such purchase right shall be
     irrevocable, and the Participant may not resume participation in the
     offering period for which the terminated purchase right was granted unless
     he or she re-enrolls in the Plan (by making a timely filing of the
     prescribed enrollment forms) on or before a regularly-scheduled Entry Date
     into that offering period. In such event, the Participant shall be granted
     a new purchase right with a new purchase price based upon the Fair Market
     Value per share on Common Stock on his or her new Entry Date.

                    (iii) Should the Participant cease to remain an Eligible
     Employee for any reason (including death, disability or change in status)
     while his or her purchase right remains outstanding, then that purchase
     right shall immediately terminate, and all of the Participant's payroll
     deductions for the Purchase Interval in which the purchase right so
     terminates shall be immediately refunded. However, should the Participant
     cease to remain in active service by reason of an approved unpaid leave of
     absence, then the Participant shall have the right, exercisable up until
     the last business day of the Purchase Interval in which such leave
     commences, to (a) withdraw all the payroll deductions collected to date on
     his or her behalf for that Purchase Interval or (b) have such funds held
     for the purchase of shares on his or her behalf on the next scheduled
     Purchase Date. In no event, however, shall any further payroll deductions
     be collected on the Participant's behalf during such leave. Upon the
     Participant's return to active service (x) within ninety (90) days
     following the commencement of such leave or (y) prior to the expiration of
     any longer period for which such Participant's right to reemployment with
     the Corporation is guaranteed by statute or contract, his or her payroll
     deductions under the Plan shall automatically resume at the rate in effect
     at the time the leave began, unless the Participant withdraws from the Plan
     prior to his or her return. An individual who returns to active employment
     following a leave of absence which exceeds in duration the applicable (x)
     or (y) time period will be treated as a new Employee for purposes of
     subsequent participation in the Plan and must accordingly re-enroll in the
     Plan (by making a timely filing of the prescribed enrollment forms) on or
     before his or her scheduled Entry Date into the offering period.

          G.   CHANGE IN CONTROL. Each outstanding purchase right shall
automatically be exercised, immediately prior to the effective date of any
Change in Control, by applying the payroll deductions of each Participant for
the Purchase Interval in which such Change in Control occurs to the purchase of
whole shares of Common Stock at a purchase price per share equal to eighty-five
percent (85%) of the lower of (i) the Fair Market Value per share of Common
Stock on the Participant's Entry Date into the offering period in which such
Change in Control occurs or (ii) the Fair Market Value per share of Common Stock
immediately prior to the effective date of such Change in Control. However, the
applicable limitation on the number of shares of Common Stock purchasable per
Participant shall continue to apply to any such purchase, but not the limitation
applicable to the maximum number of shares of Common Stock purchasable in the
aggregate.

                                       6
<PAGE>

          The Corporation shall use its best efforts to provide at least ten
(10)-days prior written notice of the occurrence of any Change in Control, and
Participants shall, following the receipt of such notice, have the right to
terminate their outstanding purchase rights prior to the effective date of the
Change in Control.

          H.   PRORATION OF PURCHASE RIGHTS. Should the total number of shares
of Common Stock to be purchased pursuant to outstanding purchase rights on any
particular date exceed the number of shares then available for issuance under
the Plan, the Plan Administrator shall make a pro-rata allocation of the
available shares on a uniform and nondiscriminatory basis, and the payroll
deductions of each Participant, to the extent in excess of the aggregate
purchase price payable for the Common Stock pro-rated to such individual, shall
be refunded.

          I.   ASSIGNABILITY. The purchase right shall be exercisable only by
the Participant and shall not be assignable or transferable by the Participant.

          J.   STOCKHOLDER RIGHTS. A Participant shall have no stockholder
rights with respect to the shares subject to his or her outstanding purchase
right until the shares are purchased on the Participant's behalf in accordance
with the provisions of the Plan and the Participant has become a holder of
record of the purchased shares.

     VIII. ACCRUAL LIMITATIONS

          A.   No Participant shall be entitled to accrue rights to acquire
Common Stock pursuant to any purchase right outstanding under this Plan if and
to the extent such accrual, when aggregated with (i) rights to purchase Common
Stock accrued under any other purchase right granted under this Plan and (ii)
similar rights accrued under other employee stock purchase plans (within the
meaning of Code Section 423) of the Corporation or any Corporate Affiliate,
would otherwise permit such Participant to purchase more than Twenty-Five
Thousand Dollars ($25,000.00) worth of stock of the Corporation or any Corporate
Affiliate (determined on the basis of the Fair Market Value per share on the
date or dates such rights are granted) for each calendar year such rights are at
any time outstanding.

          B.   For purposes of applying such accrual limitations to the purchase
rights granted under the Plan, the following provisions shall be in effect:

                    (i)  The right to acquire Common Stock under each
     outstanding purchase right shall accrue in a series of installments on each
     successive Purchase Date during the offering period on which such right
     remains outstanding.

                    (ii) No right to acquire Common Stock under any outstanding
     purchase right shall accrue to the extent the Participant has already
     accrued in the same calendar year the right to acquire Common Stock under
     one or more other purchase rights at a rate equal to Twenty-Five Thousand
     Dollars ($25,000.00) worth of Common Stock (determined on the basis of the
     Fair Market Value per share on the date or dates of grant) for each
     calendar year such rights were at any time outstanding.

                                       7
<PAGE>

          C.   If by reason of such accrual limitations, any purchase right of a
Participant does not accrue for a particular Purchase Interval, then the payroll
deductions which the Participant made during that Purchase Interval with respect
to such purchase right shall be promptly refunded.

          D.   In the event there is any conflict between the provisions of this
Article and one or more provisions of the Plan or any instrument issued
thereunder, the provisions of this Article shall be controlling.

     IX.  EFFECTIVE DATE AND TERM OF THE PLAN

          A.   The Plan was adopted by the Board on May 19, 1999 and shall
become effective at the Effective Time, provided no purchase rights granted
under the Plan shall be exercised, and no shares of Common Stock shall be issued
hereunder, until (i) the Plan shall have been approved by the stockholders of
the Corporation and (ii) the Corporation shall have complied with all applicable
requirements of the 1933 Act (including the registration of the shares of Common
Stock issuable under the Plan on a Form S-8 registration statement filed with
the Securities and Exchange Commission), all applicable listing requirements of
any stock exchange (or the Nasdaq National Market, if applicable) on which the
Common Stock is listed for trading and all other applicable requirements
established by law or regulation. In the event such stockholder approval is not
obtained, or such compliance is not effected, within twelve (12) months after
the date on which the Plan is adopted by the Board, the Plan shall terminate and
have no further force or effect, and all sums collected from Participants during
the initial offering period hereunder shall be refunded.

          B.   Unless sooner terminated by the Board, the Plan shall terminate
upon the earliest of (i) the last business day in July 2009, (ii) the date on
which all shares available for issuance under the Plan shall have been sold
pursuant to purchase rights exercised under the Plan or (iii) the date on which
all purchase rights are exercised in connection with a Corporate Transaction. No
further purchase rights shall be granted or exercised, and no further payroll
deductions shall be collected, under the Plan following such termination.

     X.   AMENDMENT OF THE PLAN

          A.   The Board may alter, amend, suspend or terminate the Plan at any
time to become effective immediately following the close of any Purchase
Interval. However, the Plan may be amended or terminated immediately upon Board
action, if and to the extent necessary to assure that the Corporation will not
recognize, for financial reporting purposes, any compensation expense in
connection with the shares of Common Stock offered for purchase under the Plan,
should the financial accounting rules applicable to the Plan at the Effective
Time be subsequently revised so as to require the recognition of compensation
expense in the absence of such amendment or termination.

          B.   In no event may the Board effect any of the following amendments
or revisions to the Plan without the approval of the Corporation's stockholders:
(i) increase the number of shares of Common Stock issuable under the Plan,
except for permissible adjustments in the event of certain changes in the
Corporation's capitalization, (ii) alter the purchase price

                                        8
<PAGE>

formula so as to reduce the purchase price payable for the shares of Common
Stock purchasable under the Plan or (iii) modify the eligibility requirements
for participation in the Plan.

     XI.  GENERAL PROVISIONS

          A.   All costs and expenses incurred in the administration of the Plan
shall be paid by the Corporation; however, each Plan Participant shall bear all
costs and expenses incurred by such individual in the sale or other disposition
of any shares purchased under the Plan.

          B.   Nothing in the Plan shall confer upon the Participant any right
to continue in the employ of the Corporation or any Corporate Affiliate for any
period of specific duration or interfere with or otherwise restrict in any way
the rights of the Corporation (or any Corporate Affiliate employing such person)
or of the Participant, which rights are hereby expressly reserved by each, to
terminate such person's employment at any time for any reason, with or without
cause.

          C.   The provisions of the Plan shall be governed by the laws of the
State of California without resort to that State's conflict-of-laws rules.

                                        9
<PAGE>

                                   SCHEDULE A

                          CORPORATIONS PARTICIPATING IN
                          EMPLOYEE STOCK PURCHASE PLAN
                            AS OF THE EFFECTIVE TIME

                                 Packeteer, Inc.
                             Packeteer Europe, b.v.
                         Packeteer Asia Pacific Limited
                        Packeteer K.K. (Kabushiki Kaisha)

<PAGE>

                                    APPENDIX

          The following definitions shall be in effect under the Plan:

          A.   BOARD shall mean the Corporation's Board of Directors.

          B.   CASH EARNINGS shall mean the (i) regular base salary paid to a
Participant by one or more Participating Companies during such individual's
period of participation in one or more offering periods under the Plan plus (ii)
all overtime payments, bonuses, commissions, profit-sharing distributions and
other incentive-type payments received during such period. Such Cash Earnings
shall be calculated before deduction of (A) any income or employment tax
withholdings or (B) any and all contributions made by the Participant to any
Code Section 401(k) salary deferral plan or Code Section 125 cafeteria benefit
program now or hereafter established by the Corporation or any Corporate
Affiliate. However, Cash Earnings shall NOT include any contributions made on
the Participant's behalf by the Corporation or any Corporate Affiliate to any
employee benefit or welfare plan now or hereafter established (other than Code
Section 401(k) or Code Section 125 contributions deducted from such Cash
Earnings).

          C.   CHANGE IN CONTROL shall mean a change in ownership of the
Corporation pursuant to any of the following transactions:

               (i)  a merger or consolidation in which securities possessing
     more than fifty percent (50%) of the total combined voting power of the
     Corporation's outstanding securities are transferred to a person or persons
     different from the persons holding those securities immediately prior to
     such transaction, or

               (ii) the sale, transfer or other disposition of all or
     substantially all of the assets of the Corporation in complete liquidation
     or dissolution of the Corporation, or

               (iii) the acquisition, directly or indirectly by an person or
     related group of persons (other than the Corporation or a person that
     directly or indirectly controls, is controlled by or is under common
     control with the Corporation) of beneficial ownership (within the meaning
     of Rule 13d-3 of the 1934 Act) of securities possessing more than fifty
     percent (50%) of the total combined voting power of the Corporation's
     outstanding securities pursuant to a tender or exchange offer made directly
     to the Corporation's stockholders.

          D.   CODE shall mean the Internal Revenue Code of 1986, as amended.

          E.   COMMON STOCK shall mean the Corporation's common stock.

          F.   CORPORATE AFFILIATE shall mean any parent or subsidiary
corporation of the Corporation (as determined in accordance with Code Section
424), whether now existing or subsequently established.

                                      A-1
<PAGE>

          G.   CORPORATION shall mean Packeteer, Inc., a Delaware corporation,
and any corporate successor to all or substantially all of the assets or voting
stock of Packeteer, Inc., which shall by appropriate action adopt the Plan.

          H.   EFFECTIVE TIME shall mean the time at which the Underwriting
Agreement is executed and the Common Stock priced for the initial public
offering. Any Corporate Affiliate which becomes a Participating Corporation
after such Effective Time shall designate a subsequent Effective Time with
respect to its employee-Participants.

          I.   ELIGIBLE EMPLOYEE shall mean any person who is employed by a
Participating Corporation on a basis under which he or she is regularly expected
to render more than twenty (20) hours of service per week for more than five (5)
months per calendar year for earnings considered wages under Code Section
3401(a).

          J.   ENTRY DATE shall mean the date an Eligible Employee first
commences participation in the offering period in effect under the Plan. The
earliest Entry Date under the Plan shall be the Effective Time.

          K.   FAIR MARKET VALUE per share of Common Stock on any relevant date
shall be determined in accordance with the following provisions:

               (i)  If the Common Stock is at the time traded on the Nasdaq
     National Market, then the Fair Market Value shall be the closing selling
     price per share of Common Stock on the date in question, as such price is
     reported by the National Association of Securities Dealers on the Nasdaq
     National Market. If there is no closing selling price for the Common Stock
     on the date in question, then the Fair Market Value shall be the closing
     selling price on the last preceding date for which such quotation exists.

               (ii) If the Common Stock is at the time listed on any Stock
     Exchange, then the Fair Market Value shall be the closing selling price per
     share of Common Stock on the date in question on the Stock Exchange
     determined by the Plan Administrator to be the primary market for the
     Common Stock, as such price is officially quoted in the composite tape of
     transactions on such exchange. If there is no closing selling price for the
     Common Stock on the date in question, then the Fair Market Value shall be
     the closing selling price on the last preceding date for which such
     quotation exists.

               (iii) For purposes of the initial offering period which begins at
     the Effective Time, the Fair Market Value shall be deemed to be equal to
     the price per share at which the Common Stock is sold in the initial public
     offering pursuant to the Underwriting Agreement.

          L.   1933 ACT shall mean the Securities Act of 1933, as amended.

          M.   PARTICIPANT shall mean any Eligible Employee of a Participating
Corporation who is actively participating in the Plan.

                                      A-2
<PAGE>

          N.   PARTICIPATING CORPORATION shall mean the Corporation and such
Corporate Affiliate or Affiliates as may be authorized from time to time by the
Board to extend the benefits of the Plan to their Eligible Employees. The
Participating Corporations in the Plan are listed in attached Schedule A.

          O.   PLAN shall mean the Corporation's 1999 Employee Stock Purchase
Plan, as set forth in this document.

          P.   PLAN ADMINISTRATOR shall mean the committee of two (2) or more
Board members appointed by the Board to administer the Plan.

          Q.   PURCHASE DATE shall mean the last business day of each Purchase
Interval. The initial Purchase Date shall be January 31, 2000.

          R.   PURCHASE INTERVAL shall mean each successive six (6)-month period
within the offering period at the end of which there shall be purchased shares
of Common Stock on behalf of each Participant.

          S.   SEMI-ANNUAL ENTRY DATE shall mean the first business day in
February and August each year on which an Eligible Employee may first enter an
offering period.

          T.   STOCK EXCHANGE shall mean either the American Stock Exchange or
the New York Stock Exchange.

          U.   UNDERWRITING AGREEMENT shall mean the agreement between the
Corporation and the underwriter or underwriters managing the initial public
offering of the Common Stock.

                                      A-3

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