Document:

Marketing, Services Agreement

    
      

      

    

    Exhibit
      10.17

     

     

    [CERTAIN
      INFORMATION IN THIS DOCUMENT HAS BEEN OMITTED 

    AND
      FILED
      SEPARATELY WITH THE SECURITIES AND 

    EXCHANGE
      COMMISSION. CONFIDENTIAL TREATMENT HAS BEEN 

    REQUESTED
      WITH RESPECT TO THE OMITTED PORTIONS.]

    

    MARKETING

    AND

    ADMINISTRATIVE
      SERVICES AGREEMENT

    

    

    THIS
      MARKETING AND ADMINISTRATIVE SERVICES AGREEMENT, hereinafter referred to as
      the
“Agreement,” is effective on this 1st day of December, 2001, by and between GRAD
      PARTNERS, INC., a Delaware corporation, hereinafter referred to as “Grad
      Partners,” having its principal place of business at 12760 High Bluff Drive,
      Suite 210, San Diego, California 92130, and RELIANT PARTNERS LLC, a California
      limited liability, hereinafter referred to as “Marketer,” having its business
      address as 3344 Industrial Court, Suite 3, San Diego, California
      92130.

    

    RECITALS

    

    WHEREAS,
      Grad Partners desires Marketer to market on behalf of Grad Partners the federal
      consolidation loans (hereinafter referred to as “Consolidation Loans”) pursuant
      to the Federal Family Education Loan Program (hereinafter referred to as
“FFELP”) offered by Grad Partners to current and prospective customers of
      Marketer; and

    

    WHEREAS,
      Marketer desires to market on behalf of Grad Partners the Consolidation Loans
      offered by Grad Partners using its lender name of “Consolidation Assistance
      Program,” on the terms and conditions hereinafter set forth.

    

    NOW,
      THEREFORE, in consideration of the foregoing and for other good and valuable
      consideration, the receipt and sufficiency of which are hereby acknowledged,
      the
      parties mutually agree as follows:

    

    
      	
              1.

            	
              MARKETING
                SERVICES.

            

    

    

    1.1    Marketer
      shall exclusively market to some or all of its current and prospective customers
      utilizing its Website and direct marketing activities the consolidation loans
      authorized under Sections 427 and 428 of the Higher Education Act of 1965 of
      1965, as amended (hereinafter referred to as the “Act”), and are offered by and
      meet the Grad Partners loan criteria. Marketer agrees that it will not use
      the
      loan applications of Grad Partners for any consolidation loan not meeting such
      criteria.

     

    
      
        
        

      

      
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    1.2    For
      the
      compensation set forth in section 2. below, Marketer shall provide the
      marketing, administration, and related activities and/or services as set forth
      in Exhibit 1.2 attached hereto and by this reference made a part
      hereof.

    

    1.3    Marketer
      agrees that prior to the use by Marketer of any collateral marketing material,
      whether written material or Website screens, specifically utilizing Grad
      Partners or Consolidation Assistance Program names used in its marketing
      activities, Marketer shall receive the prior written approval of Grad Partners.
      Grad Partners shall have five (5) business days after receipt by Grad Partners
      to respond in writing to Marketer whether a respective submission is approved
      or
      denied. If Marketer does not receive a response from Grad Partners to the
      submitted collateral within the five (5) business day period, then the specific
      submitted collateral material shall be deemed approved.

    

    1.4    In
      addition to the activities and/or services set forth on Exhibit 1.2 attached
      hereto, Marketer shall be required to become reasonably knowledgeable and
      current on the applicable procedures, policies, rules and regulations concerning
      the marketing and availability of the educational loans offered through the
      Federal Family Education Loan Program authorized by Title IV-B of the Higher
      Education Act of 1965, as amended, as related to the student loan services
      offered by or through Grad Partners.

    

    1.5    On
      or
      before March 1, 2002, Marketer shall provide or make available to Grad Partners
      in the electronic format and methodology set forth on Exhibit 1.5 attached
      thereto and by this reference made a part hereof all Consolidation Loan
      information relating to the Consolidation Loan applications sent to or received
      by Grad Partners or its third party servicer(s) during the term of the Marketing
      Agreement. The information and methodology for submitting the Application
      information may be modified by Grad Partners at any time during the term hereof
      upon thirty (30) days prior written notice to Marketer.

    
      

      
        	
                2.

              	
                COMPENSATION
                  TO MARKETER.

              

      

       

    

    2.1    Grad
      Partners shall pay Marketer a “Marketing Fee” in the amount set forth in Exhibit
      2.1 attached hereto and by this reference made a part hereof for each completed
      Consolidation Loan application (“Completed Application”) resulting from the
      marketing, administration, and related activities of Marketer as set forth
      in
      Exhibit 1.2 attached hereto.

    

    2.2    For
      purposes of this Agreement, a “Completed Application” shall mean a FFELP
      consolidation loan application received and processed by Grad Partners, or
      its
      third party servicer(s), wherein all the LVC’s for a respective Consolidation
      Loan application have been received by Grad Partners or its third party
      servicer(s) and the respective Consolidation Loan application is ready to be
      guaranteed by a guarantor and funded by Grad Partners as a student loan.

     

    
      
        
        

      

      
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                3.

              	
                PAYMENT
                  OF COMPENSATION.

              

      

    

    

    3.1    Except
      as
      specifically set forth in Exhibit 2.1 attached hereto, all compensation due
      Marketer for Completed Applications shall be paid within thirty (30) days after
      the end of the prior calendar month during the term of this Agreement for which
      a payment is due Marketer. Each monthly payment shall be accompanied by a report
      indicating the number of Completed Applications received by Grad Partners from
      the marketing and administrative activities of Marketer for the respective
      prior
      calendar month period. 

    
      

      
        	
                4.

              	
                COMPLIANCE.

              

      

       

    

    4.1    The
      parties intend and in good faith believe that the fees to be paid hereunder
      reflect reasonable compensation by Grad Partners for the marketing,
      administration, and related services and/or activities of Marketer as set forth
      in this Agreement. Such payments of compensation are intended to comply with
      Section 435(d) (5) of the Higher Education Act of 1965, as amended, and the
      regulations, policy statements, and pronoucements of the U.S. Department of
      Education, and all such compensation shall be immediately discontinued if the
      Department of Education informs either party hereto that such payments do not
      comply with that section of the Higher Education Act, unless an alternative
      compensation arrangement is acceptable to the parties and approved by the
      Department of Education or by the opinion of counsels for both
      parties.

    

    
      	
              5.

            	
              TERM
                AND TERMINATION.

            

    

    

    5.1    The
      term
      of this Agreement shall be for the period beginning on the date of this
      Agreement and ending December 31, 2003, unless terminated prior thereto in
      accordance with the terms of this Agreement.

    

    5.2    Grad
      Partners may terminate this Agreement upon thirty (30) days prior written notice
      to Marketer if at the end of any calendar quarter during the term hereof
      beginning with the first (1st) calendar quarter of year 2002, the average loan
      balance of all Completed Applications received from Marketer by Grad Partners
      for such quarter period is less than THIRTY THOUSAND AND NO/100 DOLLARS
      ($30,000.00), or the consolidation loan applications received by Grad Partners
      from Marketer is less than ONE THOUSAND FIVE HUNDRED (1,500) for any calendar
      quarter beginning with the first (1st) calendar quarter of year
      2002.

    

    5.3    Marketer
      may terminate this Agreement upon thirty (30) days prior written notice to
      Grad
      Partners should Grad Partners fail to make timely payment of the compensation
      to
      Marketer in accordance with Section 3. above, and such breach for non-payment
      is
      not cured within fifteen (15) days after written notice is received by Grad
      Partners.

    

    5.4    Upon
      written notice to Marketer by Grad Partners of a material breach of the terms
      of
      this Agreement, Marketer shall cease all marketing activities on behalf of
      Grad
      Partners under the terms of this Agreement until such time as the breach is
      cured by Marketer, but not later than thirty (30) days after such written notice
      is received. If the material breach is not cured by Marketer within the thirty
      (30) day period, Grad Partners shall have the right to terminate this Agreement
      at anytime thereafter upon written notice to Marketer. For purposes of this
      Agreement, a “material breach” shall include, but not limited to, the violation
      of any federal and state law regarding the privacy of customer information
      and
      violation of the use of the marks of Grad Partners as set forth in Section
      6.
      below.

     

    
      
        
        

      

      
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    5.5    In
      the
      event (i) of a sale or distribution of all or substantially all of the assets
      of
      Marketer or a sale or distribution of sufficient stock (other than pursuant
      to a
      public offering) or membership interests, as the case maybe, of Marketer to
      effect a change in control or (ii) that Marketer or its affiliates enters into
      the business of providing FFELP student loans services or a product(s) or
      services substantially similar to those student loan products or services of
      Grad Partner or its affiliates, Grad Partners may, in its sole discretion,
      terminate this Agreement immediately upon written notice to
      Marketer.

    

    5.6    Either
      party may terminate this Agreement with immediate effect: (i) upon the
      institution by the other party of proceedings to be adjudicated a bankrupt
      or
      insolvent, or the consent by the other party to institution of bankruptcy or
      insolvency proceedings against it or the filing by the other party of a petition
      or answer or consent seeking reorganization or release under the Federal
      Bankruptcy Code, or any other applicable Federal or state law, or the consent
      by
      the other party to the filing of any such petition or the appointment of a
      receiver, liquidator, assignee, trustee, or other similar official of the other
      party or of any substantial part of its property, or the making by the other
      party of an assignment for the benefit of creditors, or the admission in writing
      by the other party of an assignment for the benefit of creditors, or the
      admission in writing by the other party of its inability to pay its debts
      generally as they become due or the taking of corporate action by the other
      party in furtherance of any such actions; (ii) if, within sixty (60) days after
      the commencement of an action against the other party seeking any bankruptcy,
      insolvency, reorganization, liquidation, dissolution or similar relief under
      any
      present or future law or regulation, such action shall not have been dismissed
      or all orders or proceedings hereunder affecting the operations or the business
      of the other party stayed, or if the stay of any such order or proceeding shall
      thereafter be set aside; or if, within sixty (60) days after the appointment
      without the consent or acquiescence of the other party of any trustee, receiver
      or liquidator or similar official of the other party, or of all or any
      substantial part of the property of the other party, such appointment shall
      not
      have been vacated.

    

    5.7    Upon
      termination of the this Agreement for any reason except for termination by
      Marketer due to a material breach by Grad Partners, Marketer shall not directly
      or indirectly enter into any agreement, whether written or oral, with any party
      to sell Consolidation Loans without the prior written approval of Grad Partners.
      This paragraph 5.7 shall survive the termination of this Agreement.

    

    
      	
              6.

            	
              USE
                OF MARKS.

            

    

    

    6.1    Grad
      Partners owns certain marks, including the word mark GRAD PARTNERS and
      CONSOLIDATION ASSISTANCE PROGRAM (such specifically identified marks herein
      collectively referred to as the “Marks”). Marketer acknowledges and agrees that
      any use of the Mark shall be in a form and in a medium as approved from time
      to
      time by Grad Partners. Marketer further agrees that Grad Partners has the right
      to seek and obtain injunctive relief for any violation by the Marketer, its
      agents and assigns, of Marketer’s obligations hereunder. Grad Partners hereby
      grants to Marketer a non-exclusive, nontransferable license to use the Marks
      in
      connection with its website and direct mail financial aid information marketing
      activities solely in manner approved by Grad Partners in accordance with the
      terms of this Agreement, and Marketer accepts this license subject to the terms
      and conditions set forth in paragraph 6.4. below.

     

    
      
        
        

      

      
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    6.2    Any
      and
      all materials used by Marketer to solicit or contact its customers on behalf
      of
      Grad Partners using the Marks or related trademarks and/or service marks,
      including all written materials and/or Website screens, shall be subject to
      the
      prior written approval of Grad Partners. 

    

    6.3    Upon
      termination of this Agreement, Marketer agrees to immediately discontinue all
      use of the Marks or any term and/or logo confusingly similar thereto, and to
      destroy all materials and Website screens in its possession bearing the Marks.
      Marketer further agrees to verify to Grad Partners its compliance with the
      above
      in the form of a notarized statement to be deliverable to Grad Partners within
      thirty (30) business days after the termination of this Agreement. 

    

    6.4    Marketer
      acknowledges the ownership of the Marks in Grad Partners, and agrees that it
      will do nothing inconsistent with such ownership, and that all use of the Marks
      by Marketer shall inure to the benefit of and be on behalf of Grad Partners.
      The
      license granted hereunder shall not give Marketer any right, title, or interest
      in the Marks other than the right to use the Mark in accordance with the terms
      of this Agreement, and Marketer agrees that it will not attack the title of
      Grad
      Partners to the Marks or attack the validity of the license granted
      hereunder.

    

    6.5    Notwithstanding
      any other provision of this Agreement to the contrary, neither party shall
      have
      the right to use the other party’s registered or unregistered trademarks,
      service marks, or trade names, or to refer to the other party directly or
      indirectly, in connection with any product, promotion or publication without
      the
      prior written approval of that party. Each party acknowledges that any prior
      consent of use or reference may be revoked at any time with immediate
      effect.

    

    
      	
              7.

            	
              WARRANTIES.

            

    

    

    7.1    Each
      party represents and warrants that the performance of its obligations under
      this
      Agreement complies with all applicable federal, state, local, and foreign laws
      and regulations. Each party covenants to inform the other party immediately
      of
      any changes in such laws or regulations of which it shall have knowledge and
      which may require a change in the performance obligations
      hereunder.

    

    7.2    Each
      party represents and warrants that it is a duly organized limited liability
      company or corporation and in good standing in the state of its organization.
      Each party further represents and warrants that it has the full power and
      authority to execute this Agreement and to take all actions required by, and
      to
      perform the agreements contained in this Agreement, and that each party’s
      obligations under this Agreement do not conflict with its obligations under
      any
      other agreement to which it is a party.

     

    
      
        
        

      

      
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                8.

              	
                INDEMNIFICATION
                  AND HOLD HARMLESS.

              

      

       

    

    8.1    Each
      party shall indemnify and hold harmless the other party, its parent,
      subsidiaries, affiliates, successors, assignees, managers, directors, officers,
      agents, and employees (each an “Indemnitee) from and against any loss, damage,
      cost, expense, liability, and settlement, including without limitation, any
      reasonable attorney fees and court costs (each of the foregoing a “Claim”)
      reasonably incurred by any Indemnitee which Claim arises out of or in connection
      with (i) the intentional or negligent act or omission of the other party, or
      its
      officers, directors, managers, employees, contractors, or agents (collectively,
      the “Agents”) in the course of the performance of each parties duties and
      obligations under this Agreement; (ii) the material failure of a party and
      its
      Agents, as the case may be, to comply with the terms of this Agreement; or
      (iii)
      the material failure of a party (including without limitation its Agents who
      perform on behalf of the party hereunder) to comply with its obligations under
      any and all laws, rules, or regulations applicable to a party or its Agents
      as
      the case may be.

    

    8.2    Each
      Indemnitee seeking indemnification under this Agreement shall give prompt notice
      to the respective party (the “Indemnitor”) along with such Indemnitee’s request
      for indemnification, of any Claim for which it is seeking indemnification.
      The
      parties understand and further agree that no settlement of an indemnified Claim
      shall be made by an Indemnitee without the concurrence of the Indemnitor. The
      Indemnitor shall control the settlement or defense of any Claim; provided,
      however, that the Indemnitee may, at its cost, engage its own attorneys. The
      Indemnitee will fully cooperate with the Indemnitor to enable it to fulfill
      its
      obligations with respect to such Claim. 

    

    8.3    The
      provisions of this section 8. shall survive the termination of this Agreement.
      

    

    
      	
              9.

            	
              LIMITATION
                OF LIABILITY.

            

    

    

    9.1    IN
      NO
      EVENT SHALL ANY PARTY HERETO (INCLUDING WITHOUT LIMITATION THE AGENTS AND
      EMPLOYEES THEREOF) BE LIABLE TO THE OTHER PARTY (INCLUDING WITHOUT LIMITATION
      THE AGENTS AND EMPLOYEES THEREOF) FOR ANY SPECIAL, INCIDENTAL OR CONSEQUENTIAL
      DAMAGES, EVEN IF SUCH PARTY SHALL HAVE BEEN ADVISED OF THE POSSIBILITY OF SUCH
      POTENTIAL LOSS OR DAMAGE.

    

    9.2    EXCEPT
      AS
      OTHERWISE EXPRESSLY STATED HEREIN, THE AGGREGATE LIABILITY OF EITHER PARTY
      HERETO (THE “LIABLE PARTY”) TO THE OTHER PARTY HERETO (INCLUDING WITHOUT
      LIMITATION THE AGENTS AND EMPLOYEES THEREOF) IN CONNECTION WITH THIS AGREEMENT,
      SHALL NOT EXCEED THE AMOUNT PAID OR OWING AND UNPAID BY GRAD PARTNERS UNDER
      THIS
      AGREEMENT, REGARDLESS OF THE FORM OF ACTION GIVING RISE TO SUCH LIABILITY
      (WHETHER IN CONTRACT, TORT OR OTHERWISE).

     

    
      
        
        

      

      
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    9.3    THE
      LIMITATION SET FORTH IN SECTION 12.2 ABOVE SHALL NOT APPLY TO DAMAGES ARISING
      DIRECTLY FROM (i) THE BREACH BY THE LIABLE PARTY OF ITS OBLIGATIONS UNDER
      SECTIONS 6. MARKS AND 10. CONFIDENTIALITY HEREOF, (II) A NON-AFFILIATED THIRD
      PARTY CLAIM OR (III) THE INTENTIONAL OR GROSSLY NEGLIGENT ACT OR OMISSION OF
      THE
      LIABLE PARTY IN THE COURSE OF THE PERFORMANCE OF ITS DUTIES OR OBLIGATIONS
      UNDER
      THIS AGREEMENT.

    

    9.4    The
      provisions of this Section 9. shall survive the termination of this
      Agreement

    

    
      	
              10.

            	
              CONFIDENTIALITY.

            

    

    

    10.1    General:
      This
      Agreement and the information furnished each other prior to or after the
      execution of this Agreement, except as may be otherwise required by statute,
      for
      financial report-ing purposes, court order, or as may be necessary to the
      performance of the services required under this Agreement, shall be held in
      strict confidence by each party as proprietary information.

    

    10.2    Termination
      of Agreement:
      Upon
      termination or expiration of this Agreement and at the request and option of
      Marketer or Grad Partners, as the case may be, the other party agrees promptly
      (i) to return the confidential information of the other party to such party
      or
      (ii) destroy the confidential information of the other party and acknowledge
      in
      a sworn affidavit that all such confidential information has been
      destroyed.

    
      

      
        	
                11.

              	
                PUBLICITY.

              

      

       

    

    10.1    Except
      as
      may be required by law, no party hereto shall issue advertising, promotional
      activity, press, or publicity release relating to the provisions of this
      Agreement or the other party, including the affiliates of either party, without
      securing the prior written consent of such other party. 

    
      

      
        	
                12.

              	
                GOVERNING
                  LAW.

              

      

       

    

    12.1    Except
      as
      otherwise required by federal law, this Agreement shall be governed by and
      construed in accordance with the laws of the State of Delaware, without
      reference to its conflict of laws principals. At the sole discretion of Grad
      Partner, the County of San Diego may be the proper venue for all purposes under
      this Agreement.

     

    
      
        
        

      

      
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                13.

              	
                ASSIGNMENT.

              

      

       

    

    13.1    Neither
      party may assign or transfer this Agreement, or the rights hereunder, to any
      party without the prior written consent of the other party, except that Grad
      Partners may assign or transfer this Agreement to its parent, a subsidiary
      or an
      affiliate thereof without Marketer’s prior written consent. Such consent shall
      not be unreasonably withheld by the non-requesting party. For purposes of this
      paragraph a “transfer” shall include a transfer or sale of more than fifty
      percent (50%) of the ownership interests in either party, whether by sale or
      transfer of stock, membership interests, or the assets of the respective
      party.

     

    
      
        	
                14.

              	
                NOTICES.

              

      

       

    

    14.1    All
      notices required hereunder must be in writing and will be deemed to have been
      given when delivered personally or received by a overnight delivery service,
      or
      three (3) days after being deposited in the U.S. Mail, certified or registered,
      return receipt requested, postage prepaid, at the addresses first listed above
      or such other address as the parties may designate from time to time in writing
      during the term hereof. Notwithstanding the foregoing, any notice shall also
      be
      transmitted by facsimile to the receiving party on the day the respective notice
      is deposited in the U.S. mail by the forwarding party.

    

    
      

      
        	
                15.

              	
                ALTERNATIVE
                  DISPUTE RESOLUTION.

              

      

       

    

    15.1    Negotiation:
      The
      parties shall attempt in good faith to resolve any dispute arising out of or
      relating to this Agreement (other than disputes regarding material breaches)
      promptly by negotiations between executives who have authority to settle the
      controversy. Any party may give the other party written notice of any dispute
      not resolved in the normal course of business. Within twenty (20) days after
      delivery of said notice, executives of both parties shall meet at a mutually
      acceptable time and place, and thereafter as often as they reasonably deem
      necessary, to exchange relevant information and to attempt to resolve the
      dispute. If the matter has not been resolved within sixty (60) days of the
      disputing party's notice, or if the parties fail to meet within twenty (20)
      days, either party may initiate mediation of the controversy or claim as
      provided hereinafter. If a negotiating party intends to be accompanied at a
      meeting by an attorney, then the other negotiating party shall be given advance
      notice of such intention and may also be accompanied by an attorney. All
      negotiations pursuant to this clause shall be deemed confidential and shall
      be
      treated as compromise and settlement negotiations for purposes of the Federal
      Rules of Evidence and state rules of evidence.

    

    15.2    Mediation:
      If the
      above referenced dispute has not been resolved by negotiation as provided above,
      the parties shall endeavor to settle the dispute by mediation under the then
      current Center for Public Resources ("CPR") Model Procedure for Mediation of
      Business Disputes. One neutral third party will be selected from the CPR Panels
      of Neutrals to mediate the dispute. If the parties encounter difficulty in
      agreeing on a neutral, they will seek the assistance of CPR in the selection
      process.

    

    15.3    Other
      Remedies:
      In the
      event of a dispute arising out of or relating to this contract or the breach,
      termination or validity thereof, which has not been resolved by non-binding
      means as provided in Sections 15.1 and 15.2 above within sixty (60) days of
      the
      initiation of such procedure, either party may seek any remedy available at
      law
      or equity, including recourse to the courts.

     

    
      
        
        

      

      
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                16.

              	
                NO
                  IMPLIED WAIVER.

              

      

       

    

    16.1    Any
      waiver or modification, expressed or implied, by either party of any breach
      of
      this Agreement shall not be construed to be a waiver of any such breach or
      any
      acquiescence thereto, nor shall any delay or omission by such party to exercise
      any right arising from any such breach affect or im-pair the respective party’s
      right to such breach or any future breach. All rights and remedies hereunder
      are
      cumulative and are not exclusive of any other rights or remedies provided
      hereunder or by law.

     

    
      
        	
                `17.

              	
                CONSTRUCTION.
                  

              

      

       

    

    17.1    In
      the
      event it is determined that this Agreement or any part of this Agreement is
      or
      would be declared invalid for
      any
      reason, the parties agree to execute as soon as possible a new Agreement, in
      whole or in part, reestablishing, to the extent allowed, the intent of the
      parties when the original Agreement was entered into by them.

    

    
      	
              18.

            	
              COUNTERPARTS.

            

    

    

    18.1    This
      Agreement may be executed in one or more counterparts, each of which shall
      constitute an original, but all of which together shall constitute one and
      the
      same instrument notwithstanding that all parties are not signatories to the
      same
      counterparts.

    

    
      

      
        	
                19.

              	
                BENEFIT.

              

      

       

    

    19.1    This
      Agreement shall be binding upon and insure to the benefit of the parties thereto
      and their respective successors and assigns in consideration of the mutual
      promises and previously provided services described herein.

     

    
      
        	
                20.

              	
                ENTIRE
                  AGREEMENT.

              

      

       

    

    20.1    This
      instrument contains the entire agreement of the parties hereto and supersedes
      all prior negotiations, understandings, letters, arrangements, and agreements
      between them concerning the subject matter contained herein. 

    

    
      

      
        	
                21.

              	
                HEADINGS.

              

      

       

    

    21.1    Headings
      stated in this Agreement are for convenience of reference only and are not
      intended as a summary of such sections and do not affect, limit, modify, or
      construe the contents thereof.

    

    [REMAINDER
      OF PAGE INTENTIONALLY LEFT BLANK]

    

    
      
        
          
          

        

        
          9

          
            

          

        

        
          
          

        

      

    

    

    IN
      WITNESS THEREOF, the parties have executed this Marketing and Administrative
      Services Agreement on the date first set forth above.

     

    
      	Grad Partners:	 	 	Marketer:
	 	 	 	 
	
              GRAD PARTNERS, INC.

              a Delaware corporation

            	 	 	
              RELIANT PARTNERS LLC

              a California limited liability
                company

            
	 	 	 	 
	By:
              /s/ Douglas L. Feist	 	 	By:
              /s/ Donald A. Firm
	
              
                

              

              DOUGLAS L. FEIST

              Executive Vice President and Secretary

            	 	 	
              
                

              

              DONALD A. FIRM

              Manager and
                Member

            

    

     

     

    
      	 	 	 	 
	 	 	 	By:
              /s/ Jason
              W. Kinkaid
	
            	 	 	
              

              JASON
                W. KINCAID

              Manager
                and Member

            

    

     

    

    
      	 	 	 	 
	 	 	 	By:
              /s/ David G. Spurgin
	
            	 	 	
              

              DAVID
                G. SPURGIN

              Manager
                and Member

            

    

    

      
        
          
          

        

        
          10

          
            

          

        

        
          
          

        

      

    EXHIBIT
      “1.2”

    

    LIST

    OF

    MARKETING
      ACTIVITES AND SERVICES

    

    

    1.    Print,
      assemble, and provide to prospective applicants promotional materials, the
      contents of said promotional materials to be as approved by Grad Partners
      hereunder;

    

    2.    Conduct
      other marketing activities with respect to the consolidation loan products
      as
      mutually approved by the parties;

    

    3.    Print,
      assemble, and distribute Grad Partners approved Consolidation Loan applications
      to potential borrowers;

    

    4.    Assist
      and advise applicants in the completion of the loan application
      process;

    

    5.    Use
      reasonable care to comply with and remain current on the procedures, policies,
      rules and regulations of the consolidation loan program, and the consolidation
      loan services of Grad Partners by reviewing materials provided by Grad Partners,
      its servicers and guarantors, and the United States Department of
      Education;

    

    6.    Distribute
      to actual prospective borrowers the debt management and counseling materials
      and
      information developed by Grad Partners;

    

    7.    Use
      reasonable care to answer questions from prospective Consolidation Loan
      borrowers regarding the FFELP eligibility for Consolidation Loans, and the
      services of Grad Partners related thereto; 

    

    8.    Comply
      with all reasonable requirements imposed by the Grad Partners’ servicers or
      guarantors related to the completeness of the Consolidation Loan applications
      sent to the respective servicers for processing or guarantee; and

    

    9.    All
      marketing activities to be performed by Marketer to be consistent with Grad
      Partners policies regarding promoting a strong working relationship with
      financial aid offices of educational institutions and all FFELP statutes and
      regulations.

    

    
      
        
          
          

        

        
          11

          
            

          

        

        
          
          

        

      

    

    

    EXHIBIT
      “1.5”

    

    

    CONSOLIDATION
      LOAN APPLICATION INFORMATION

    (collectively
      the “Student Loan Data”)

    

    SPECIFICATIONS

    

    The
      Student Loan Data shall be formatted as described in the document titled
“dailyfromnextstudent.xls” attached hereto, hereinafter referred to as the
“Application Data.” The Application Data shall be made available by Marketer to
      Grad Partners via access by Grad Partners to the Marketer’s company FTP (File
      Transfer Protocol) site. The Marketer’s FTP site shall be accessible to Grad
      Partners twenty-four (24) hours a day, seven (7) days a week. A new Application
      Data file shall be created and made available on Marketer’s FTP site on a daily
      basis. The Application Data file shall contain all student loan application
      data
      for the current day as denoted in the name of the Application Data file. The
      name of the Application Data file shall be prefixed with the text, “appdata_”,
      followed by the date in the format of “yyyymmdd”, where “yyyy” = currentyear;
“mm” = current month; and “dd” = current day, followed by the file extension of
“.gpg”. All Application Data files shall be encrypted prior to placement on
      Marketer’s FTP site. Encryption technology used shall be of any type that
      complies with RFC 2440, and shall be used in such a manner as to secure to
      file
      to prevent disclosure of the Application Data contained within the respective
      Application Data file to any parties throughout the transmission process, Grad
      Partners and Marketing notwithstanding. All Application Data files intended
      for
      transmission from Marketer to Grad Partners shall be encrypted using Grad
      Partners public key. No files shall reside on Marketer’s FTP site that are not
      stored in the encrypted format. The Grad Partners public key shall be supplied
      to Marketer prior to the initial transfer of Application Data. The frequency
      of
      the Application Data transfers shall be at least a minimum one (1) time per
      day.
      The transfers shall occur after 12:00 a.m. each day. At or after that time,
      Grad
      Partners may connect to the Marketer’s FTP server and transfer the Application
      Data file for the prior day’s student loan activity of Marketer. The URL
      (Uniform Resource Locator), username and password for access to the Marketer’s
      FTP site shall be supplied to Grad Partners with twenty-four (24) hours of
      Grad
      Partner’s request. Any change to the URL, username, or password used to access
      Marketer’s FTP site shall be communicated to Grad Partners Information Systems
      Department within twenty-four (24) hours after a respective change.

    

    

    [SEE
      ATTACHED “dailyfromnextstudent.xls” FILE]

    

    

    
      
        
          
          

        

        
          12

          
            

          

        

        
          
          

        

      

    

    

    EXHIBIT
      “2.1”

    

    MARKETING
      FEES

     

    1.    Compensation.

    

    For
      each
      Completed Application, Grad Partners shall pay Marketer the amount of [**],
      hereinafter referred to as the “Marketing Fee.” No Marketing Fee shall be paid
      Marketer for any Completed Application having a loan balance to be consolidated
      of less than TEN THOUSAND AND NO/100 DOLLARS ($10,000.00).

    

    2.    Marketing
      Names.

    

    a.    Grad
      Partners shall provide Marketer at Marketer’s expense with lists of names to be
      used by Marketer for the sole purpose of soliciting customers on behalf of
      Grad
      Partners pursuant to the terms of this Agreement. Marketer acknowledges and
      agrees that all such names provided to Marketer shall remain the sole and
      exclusive property of Grad Partners and only its customers. Marketer further
      agrees that it shall have not right to utilize or solicit those names or
      customers of Grad Partners for any purpose except as set forth in this
      Agreement. Marketer acknowledges that the names provided contain confidential
      information subject to federal and state privacy laws, and Marketer agrees
      to
      comply with all legal requirements related thereto. 

    

    b.    Grad
      Partners shall have right to deduct the cost and expense of list of names
      provided Marketer monthly from the Marketing Fees due Marketer for any calendar
      month that Marketing Fees are due Marketer. Should the expenses exceed the
      Marketing Fees due Marketer for any calendar month, Marketer shall pay Grad
      Partners the difference with fifteen (15) days after Marketer receives the
      written notice from Grad Partners. Grad Partners shall provide Marketer with
      a
      reconciliation report that shall accompany any demand for payment for a
      respective calendar month period.

    

    c.    Upon
      termination of this Agreement for whatever reason, Grad Partners shall have
      the
      right deduct such unpaid expenses from those Marketing Fees due Marketer upon
      through the termination date. Should such list expenses exceed the amount of
      the
      Marketing Fees due Marketer upon termination, then Marketer shall pay the
      difference within fifteen (15) days from Marketer receiving written notice
      from
      Grad Partners of the unpaid amount. Grad Partners shall provide Marketer with
      a
      reconciliation report that shall accompany any demand for payment. 

    

    **
      CERTAIN INFORMATION ON THIS PAGE HAS BEEN OMITTED AND FILED SEPARATELY WITH
      THE
      SECURITIES AND EXCHANGE COMMISSION. CONFIDENTIAL TREATMENT HAS BEEN REQUESTED
      WITH RESPECT TO THE OMITTED PORTIONS.

     

    13Amendment, Services Agreement

    
      

      

    

    Exhibit
      10.18

     

    

      [CERTAIN
        INFORMATION IN THIS DOCUMENT HAS BEEN OMITTED 

      AND
        FILED
        SEPARATELY WITH THE SECURITIES AND 

      EXCHANGE
        COMMISSION. CONFIDENTIAL TREATMENT HAS BEEN 

      REQUESTED
        WITH RESPECT TO THE OMITTED PORTIONS.]

      

      FIRST
        AMENDMENT

      TO
        THE

      MARKETING

      AND

      ADMINISTRATIVE
        SERVICES AGREEMENT

      

      THIS
        FIRST AMENDMENT TO MARKETING AND ADMINISTRATIVE SERVICES AGREEMENT, hereinafter
        referred to as the “First Amendment,” is effective on this 1st day of April,
        2002, by and between GRAD PARTNERS, INC., a Delaware corporation, hereinafter
        referred to as “Grad Partners,” having its principal place of business at 12760
        High Bluff Drive, Suite 210, San Diego, California 92130, and RELIANT PARTNERS
        LLC, a California limited liability company, hereinafter referred to as
“Marketer,” having its business address as 3344 Industrial Court, Suite 3, San
        Diego California 92121.

      RECITALS

      

      WHEREAS,
        Grad Partners and Marketer desire to amend the Marketing and Administrative
        Services Agreement between the parties, dated December 1, 2001, hereinafter
        referred to as the “Marketing Agreement,” to the Marketing Fee for Completed
        Applications generated by Marketer as a result of the marketing and
        administrative services performed by Marketer under the terms of the Marketing
        Agreement.

      

      NOW,
        THEREFORE, in consideration of the foregoing and for other good and valuable
        consideration, the receipt and sufficiency of which are hereby acknowledged,
        the
        parties mutually agree as follows:

      

      AGREEMENT

      1.    MARKETING
        FEE.

      

      1.1    Marketing
        Fee.
        Beginning on the effective date of this Amendment, the amount of the Marketing
        Fee set forth in Exhibit 2.1 attached to the Marketing Agreement shall be
        [**].

      

      **
        CERTAIN INFORMATION ON THIS PAGE HAS BEEN OMITTED AND FILED SEPARATELY WITH
        THE
        SECURITIES AND EXCHANGE COMMISSION. CONFIDENTIAL TREATMENT HAS BEEN REQUESTED
        WITH RESPECT TO THE OMITTED PORTIONS.

       

      
        
          
          

        

        
          1

          
            

          

        

        
          
          

        

      

      

      2.    MARKETING
        AGREEMENT.

      

      2.1    Except
        as
        amended by this First Amendment to the Marketing Agreement, the terms and
        conditions of the Marketing Agreement shall remain in full force and effect
        between Grad Partners and Marketer and are incorporated herein by this
        reference. 

      

      

      [REMAINDER
        OF PAGE INTENTIONALLY LEFT BLANK]

      

      {SIGNATURE
        PAGE FOLLOWS}

       

       

       

       

       

       

       

      
        
          
          

        

        
          2

          
            

          

        

        
          
          

        

      

      IN
        WITNESS THEREOF, the parties have executed this First Amendment to the Marketing
        and Administrative Services Agreement effective on the date first set forth
        above.

      
         

        
          	Grad Partners:	 	 	Marketer:
	 	 	 	 
	
                  GRAD PARTNERS, INC.

                  a Delaware corporation

                	 	 	
                  RELIANT PARTNERS LLC

                  a California limited liability
                    company

                
	 	 	 	 
	By:
                  /s/ John
                  T. Weir	 	 	By:
                  /s/ Donald A. Firm
	
                  
                    

                  

                  JOHN T. WEIR

                  Senior Vice President/Direct Marketing

                	 	 	
                  
                    

                  

                  DONALD A. FIRM

                  Manager and
                    Member

                

        

         

         

        
          	 	 	 	 
	 	 	 	By:
                  /s/ Jason
                  W. Kinkaid
	
                	 	 	
                  

                  JASON
                    W. KINCAID

                  Manager
                    and Member

                

        

         

        

        
          	 	 	 	 
	 	 	 	By:
                  /s/ David G. Spurgin
	
                	 	 	
                  

                  DAVID
                    G. SPURGIN

                  Manager
                    and Member

                

        

        
3

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