Document:

exv4w4

 

Exhibit 4.4

 

 

INDENTURE

among

SLM STUDENT LOAN TRUST 2005-8,

as the Issuer,

CHASE BANK USA, NATIONAL ASSOCIATION,

not in its individual capacity but

solely as the Eligible Lender Trustee

and

DEUTSCHE BANK TRUST COMPANY AMERICAS,

not in its individual capacity but

solely as the Indenture Trustee

Dated as of September 1, 2005

 

 

 

 

TABLE OF CONTENTS

	 	 	 	 	 
	 	 	Page
	ARTICLE I
	 	 	 	 
	Definitions and Usage
	 	 	 	 
	 
	 	 	 	 
	SECTION 1.1   Definitions and Usage

	 	 	2	 
	SECTION 1.2   Incorporation by Reference of Trust Indenture Act

	 	 	2	 
	 
	 	 	 	 
	ARTICLE II
	 	 	 	 
	The Notes
	 	 	 	 
	 
	 	 	 	 
	SECTION 2.1   Form

	 	 	3	 
	SECTION 2.2   Execution, Authentication and Delivery

	 	 	3	 
	SECTION 2.3   Temporary Notes

	 	 	4	 
	SECTION 2.4   Registration; Registration of Transfer and Exchange

	 	 	4	 
	SECTION 2.5   Mutilated, Destroyed, Lost or Stolen Notes

	 	 	6	 
	SECTION 2.6   Persons Deemed Owner

	 	 	7	 
	SECTION 2.7   Payment of Principal and Interest; Note Interest Shortfall

	 	 	7	 
	SECTION 2.8   Cancellation

	 	 	8	 
	SECTION 2.9   Release of Collateral

	 	 	8	 
	SECTION 2.10  Book-Entry Notes

	 	 	8	 
	SECTION 2.11  Notices to Clearing Agency

	 	 	9	 
	SECTION 2.12  Definitive Notes

	 	 	9	 
	 
	 	 	 	 
	ARTICLE III
	 	 	 	 
	Covenants
	 	 	 	 
	 
	 	 	 	 
	SECTION 3.1   Payments to Noteholders and each Swap Counterparty

	 	 	10	 
	SECTION 3.1A Collateral Account

	 	 	10	 
	SECTION 3.2   Maintenance of Office or Agency

	 	 	11	 
	SECTION 3.3   Money for Payments to be Held in Trust

	 	 	11	 
	SECTION 3.4   Existence

	 	 	13	 
	SECTION 3.5   Protection of Indenture Trust Estate

	 	 	13	 
	SECTION 3.6   Opinions as to Indenture Trust Estate

	 	 	13	 
	SECTION 3.7   Performance of Obligations; Servicing of Trust Student Loans

	 	 	14	 
	SECTION 3.8   Negative Covenants

	 	 	16	 
	SECTION 3.9   Annual Statement as to Compliance

	 	 	17	 
	SECTION 3.10  Issuer May Consolidate, etc., Only on Certain Terms

	 	 	17	 
	SECTION 3.11  Successor or Transferee

	 	 	19	 
	SECTION 3.12  No Other Business

	 	 	19	 
	SECTION 3.13  No Borrowing

	 	 	19	 
	SECTION 3.14  Obligations of Servicer and Administrator

	 	 	19	 
	SECTION 3.15  Guarantees, Loans, Advances and Other Liabilities

	 	 	19	 
	SECTION 3.16  Capital Expenditures

	 	 	20	 
	SECTION 3.17  Restricted Payments

	 	 	20	 

i

 

	 	 	 	 	 
	 	 	Page
	SECTION 3.18  Notice of Events of Default

	 	 	20	 
	SECTION 3.19  Further Instruments and Acts

	 	 	20	 
	 
	 	 	 	 
	ARTICLE IV
	 	 	 	 
	Satisfaction and Discharge
	 	 	 	 
	 
	 	 	 	 
	SECTION 4.1   Satisfaction and Discharge of Indenture

	 	 	20	 
	SECTION 4.2   Application of Trust Money

	 	 	21	 
	SECTION 4.3   Repayment of Moneys Held by Paying Agent

	 	 	22	 
	SECTION 4.4   Auction of Trust Student Loans

	 	 	22	 
	 
	 	 	 	 
	ARTICLE V
	 	 	 	 
	Remedies
	 	 	 	 
	 
	 	 	 	 
	SECTION 5.1   Events of Default

	 	 	23	 
	SECTION 5.2   Acceleration of Maturity; Rescission and Annulment

	 	 	24	 
	SECTION 5.3   Collection of Indebtedness and Suits for Enforcement by Indenture Trustee

	 	 	24	 
	SECTION 5.4   Remedies; Priorities

	 	 	26	 
	SECTION 5.5   Optional Preservation of the Trust Student Loans

	 	 	30	 
	SECTION 5.6   Limitation of Suits

	 	 	30	 
	SECTION 5.7   Unconditional Rights of Noteholders to Receive Principal and Interest

	 	 	31	 
	SECTION 5.8   Restoration of Rights and Remedies

	 	 	31	 
	SECTION 5.9   Rights and Remedies Cumulative

	 	 	31	 
	SECTION 5.10  Delay or Omission Not a Waiver

	 	 	31	 
	SECTION 5.11  Control by Noteholders

	 	 	31	 
	SECTION 5.12  Waiver of Past Defaults

	 	 	32	 
	SECTION 5.13  Undertaking for Costs

	 	 	32	 
	SECTION 5.14  Waiver of Stay or Extension Laws

	 	 	32	 
	SECTION 5.15  Action on Notes

	 	 	33	 
	SECTION 5.16  Performance and Enforcement of Certain Obligations

	 	 	33	 
	 
	 	 	 	 
	ARTICLE VI

The Indenture Trustee
	 	 	 	 
	 
	 	 	 	 
	SECTION 6.1   Duties of Indenture Trustee

	 	 	34	 
	SECTION 6.2   Rights of Indenture Trustee

	 	 	35	 
	SECTION 6.3   Individual Rights of Indenture Trustee

	 	 	35	 
	SECTION 6.4   Indenture Trustee’s Disclaimer

	 	 	35	 
	SECTION 6.5   Notice of Defaults

	 	 	36	 
	SECTION 6.6   Reports by Indenture Trustee to Noteholders

	 	 	36	 
	SECTION 6.7   Compensation and Indemnity

	 	 	36	 
	SECTION 6.8   Replacement of Indenture Trustee

	 	 	37	 
	SECTION 6.9   Successor Indenture Trustee by Merger

	 	 	38	 
	SECTION 6.10  Appointment of Co-Trustee or Separate Trustee

	 	 	38	 
	SECTION 6.11  Eligibility; Disqualification

	 	 	39	 

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	 	 	Page
	SECTION 6.12  Preferential Collection of Claims Against the Issuer

	 	 	39	 
	 
	 	 	 	 
	ARTICLE VII
	 	 	 	 
	Noteholders’ Lists and Reports
	 	 	 	 
	 
	 	 	 	 
	SECTION 7.1   Issuer to Furnish Indenture Trustee Names and Addresses of Noteholders

	 	 	40	 
	SECTION 7.2   Preservation of Information; Communications to Noteholders

	 	 	40	 
	SECTION 7.3   Reports by Issuer

	 	 	41	 
	 
	 	 	 	 
	ARTICLE VIII
	 	 	 	 
	Accounts, Disbursements and Releases
	 	 	 	 
	 
	 	 	 	 
	SECTION 8.1   Collection of Money

	 	 	41	 
	SECTION 8.2   Trust Accounts

	 	 	41	 
	SECTION 8.3   General Provisions Regarding Accounts

	 	 	42	 
	SECTION 8.4   Release of Indenture Trust Estate

	 	 	43	 
	SECTION 8.5   Opinion of Counsel

	 	 	43	 
	 
	 	 	 	 
	ARTICLE IX
	 	 	 	 
	Supplemental Indentures
	 	 	 	 
	 
	 	 	 	 
	SECTION 9.1   Supplemental Indentures Without Consent of Noteholders

	 	 	44	 
	SECTION 9.2   Supplemental Indentures with Consent of Noteholders

	 	 	45	 
	SECTION 9.3   Execution of Supplemental Indentures

	 	 	46	 
	SECTION 9.4   Effect of Supplemental Indenture

	 	 	47	 
	SECTION 9.5   Conformity with Trust Indenture Act

	 	 	47	 
	SECTION 9.6   Reference in Notes to Supplemental Indentures

	 	 	47	 
	 
	 	 	 	 
	ARTICLE X
	 	 	 	 
	Redemption of Notes
	 	 	 	 
	 
	 	 	 	 
	SECTION 10.1  Redemption

	 	 	47	 
	SECTION 10.2  Form of Redemption Notice

	 	 	47	 
	SECTION 10.3  Notes Payable on Redemption Date

	 	 	48	 
	ARTICLE XI
	 	 	 	 
	Miscellaneous
	 	 	 	 
	 
	 	 	 	 
	SECTION 11.1  Compliance Certificates and Opinions, etc

	 	 	48	 
	SECTION 11.2  Form of Documents Delivered to Indenture Trustee

	 	 	50	 
	SECTION 11.3  Acts of Noteholders

	 	 	51	 
	SECTION 11.4  Notices, etc., to Indenture Trustee, Issuer and Rating Agencies

	 	 	51	 
	SECTION 11.5  Notices to Noteholders; Waiver

	 	 	52	 
	SECTION 11.6  Alternate Payment and Notice Provisions

	 	 	52	 
	SECTION 11.7  Conflict with Trust Indenture Act

	 	 	53	 
	SECTION 11.8  Effect of Headings and Table of Contents

	 	 	53	 
	SECTION 11.9  Successors and Assigns

	 	 	53	 

iii

 

	 	 	 	 	 
	 	 	Page
	SECTION 11.10 Separability

	 	 	53	 
	SECTION 11.11 Benefits of Indenture

	 	 	53	 
	SECTION 11.12 Legal Holidays

	 	 	53	 
	SECTION 11.13 Governing Law

	 	 	54	 
	SECTION 11.14 Counterparts

	 	 	54	 
	SECTION 11.15 Recording of Indenture

	 	 	54	 
	SECTION 11.16 Trust Obligations

	 	 	54	 
	SECTION 11.17 No Petition

	 	 	54	 
	SECTION 11.18 Inspection

	 	 	55	 
	SECTION 11.19 Subordination
	 	 	55	 

iv

 

APPENDICES, SCHEDULES AND EXHIBITS

	 	 	 
	APPENDIX A-1

	 	Definitions and Usage
	APPENDIX A-2

	 	Reset Rate Note Procedures
	 
	 	 
	SCHEDULE A

	 	Schedule of Trust Student Loans
	SCHEDULE B

	 	Location of Trust Student Loan Files
	 
	 	 
	EXHIBIT A

	 	Forms of Notes
	EXHIBIT B

	 	Form of Note Depository Agreement for U.S. Dollar Denominated Notes
	EXHIBIT C

	 	Form of Note Depository Agreement for Notes Denominated in a Currency Other than U.S. Dollars

v

 

          INDENTURE, dated as of September 1, 2005, among SLM STUDENT LOAN TRUST 2005-8, a Delaware
statutory trust (the “Issuer”), CHASE BANK USA, NATIONAL ASSOCIATION, a national banking
association, not in its individual capacity but solely as eligible lender trustee on behalf of the
Issuer (in such capacity, the “Eligible Lender Trustee”), and DEUTSCHE BANK TRUST COMPANY AMERICAS,
a New York banking corporation, not in its individual capacity but solely as indenture trustee (in
such capacity, the “Indenture Trustee”).

          Each party agrees as follows for the benefit of the other party and for the equal and ratable
benefit of the holders of the Issuer’s Student Loan-Backed Notes (the “Notes”) and, after the Notes
have been paid in full, for the benefit of any Currency Swap Counterparty:

GRANTING CLAUSE

          The Issuer and, with respect to the Trust Student Loans, the Eligible Lender Trustee hereby
Grant to the Indenture Trustee, as trustee for the benefit of the Noteholders and, subject to the
provisions of Section 11.19, any Currency Swap Counterparty, effective as of the Closing Date all
of their right, title and interest in and to the following:

     (a) the Trust Student Loans, and all obligations of the Obligors thereunder including all
moneys accrued and paid thereunder on or after the applicable Cutoff Date and all guaranties and
other rights relating to the Trust Student Loans;

     (b) the Servicing Agreement, including the right of the Issuer to cause the Servicer to
purchase Trust Student Loans from the Issuer under circumstances described therein;

     (c) the related Sale Agreement, including the right of the Issuer to cause the Depositor to
repurchase Trust Student Loans from the Issuer under the circumstances described therein and
including the rights of the Depositor under the Purchase Agreements;

     (d) the SLM ECFC Purchase Agreement and the VG Funding Purchase Agreement, to the extent
that the rights of the Depositor thereunder have been assigned to the Issuer pursuant to the Sale
Agreement, including the right of the Depositor to cause SLM ECFC or VG Funding, as the case may
be, to repurchase Trust Student Loans from the Depositor under the circumstances described in the
applicable Purchase Agreement;

     (e) the Administration Agreement, the Remarketing Agreement, any Swap Agreements to be
entered into from time to time (including the Initial Interest Rate Swap Agreement) and any
agreement representing Eligible Repurchase Obligations between the Trust and an Eligible Repo
Counterparty to be entered into from time to time;

     (f) each Guarantee Agreement, including the right of the Issuer to cause the related
Guarantor to make Guarantee Payments in respect of the Trust Student Loans;

     (g) the Trust Accounts and all funds on deposit from time to time in the Trust Accounts,
including the Reserve Account Initial Deposit, the Capitalized Interest Account Initial Deposit,
the Supplemental Purchase Account Initial Deposit, the Add-On Consolidation Loan

1

 

Account Initial Deposit and the Collection Account Initial Deposit, if any, and all
investments and proceeds thereof (including all income thereon); and

     (h) all present and future claims, demands, causes and choses in action in respect of any or
all of the foregoing and all payments on or under and all proceeds of every kind and nature
whatsoever in respect of any or all of the foregoing, including all proceeds of the conversion,
voluntary or involuntary, into cash or other liquid property, all cash proceeds, accounts, accounts
receivable, notes, drafts, acceptances, chattel paper, checks, general intangibles, deposit
accounts, insurance proceeds, condemnation awards, rights to payment of any and every kind and
other forms of obligations and receivables, instruments and other property which at any time
constitute all or part of or are included in the proceeds of any of the foregoing (collectively,
the “Collateral”).

          The foregoing Grant is made in trust to secure the payment of principal of and interest on,
and any other amounts owing in respect of, the Notes, equally and ratably without prejudice,
priority or distinction, to secure compliance with the provisions of this Indenture and, subject to
the provisions of Section 11.19, to secure amounts owing to any Currency Swap Counterparty under
the related Currency Swap Agreement, all as provided in this Indenture.

          The Indenture Trustee, as indenture trustee on behalf of the Noteholders and each Currency
Swap Counterparty, acknowledges such Grant, accepts the trusts under this Indenture in accordance
with the provisions of this Indenture and agrees to perform its duties required in this Indenture
to the best of its ability to the end that the interests of the Noteholders and each Currency Swap
Counterparty under the related Currency Swap Agreement may be adequately and effectively protected.

ARTICLE I

Definitions and Usage

          SECTION 1.1 Definitions and Usage. Except as otherwise specified herein or as the
context may otherwise require, capitalized terms used but not otherwise defined herein are defined
in Appendix A-1 to this Indenture, which also contains rules as to usage that shall be applicable
herein.

          SECTION 1.2 Incorporation by Reference of Trust Indenture Act. Whenever this
Indenture refers to a provision of the TIA, the provision is incorporated by reference in and made
a part of this Indenture. The following TIA terms used in this Indenture have the following
meanings:

          “Commission” means the Securities and Exchange Commission.

          “indenture securities” means the Notes.

          “indenture security holder” means a Noteholder.

          “indenture to be qualified” means this Indenture.

2

 

          “indenture trustee” or “institutional trustee” means the Indenture Trustee.

          “obligor” on the indenture securities means the Issuer and any other obligor on the indenture
securities.

          All other TIA terms used in this Indenture that are defined by the TIA, defined by TIA
reference to another statute or defined by Commission rule have the meaning assigned to them by
such definitions.

ARTICLE II

The Notes

          SECTION 2.1 Form. The Notes, together with the Indenture Trustee’s certificate of
authentication, shall be in substantially the forms set forth in Exhibit A, with such appropriate
insertions, omissions, substitutions and other variations as are required or permitted by this
Indenture and may have such letters, numbers or other marks of identification and such legends or
endorsements placed thereon as may, consistently herewith, be determined by the officers executing
the Notes, as evidenced by their execution of the Notes. Any portion of the text of any Note may
be set forth on the reverse thereof, with an appropriate reference thereto on the face of the Note.

          The Definitive Notes shall be typewritten, printed, lithographed or engraved or produced by
any combination of these methods (with or without steel engraved borders), all as determined by the
officers executing such Notes, as evidenced by their execution of such Notes.

          The terms of the Notes set forth in Exhibit A are part of the terms of this Indenture.

          Each class of Notes will be represented by interests in a book-entry note certificate
deposited on the Closing Date with Deutsche Bank Trust Company Americas, as custodian for DTC (the
“DTC Custodian”), and registered in the name of Cede & Co. as initial nominee for DTC.

          SECTION 2.2 Execution, Authentication and Delivery. The Notes shall be executed on
behalf of the Issuer by any of its Authorized Officers. The signature of any such Authorized
Officer on the Notes may be manual or facsimile.

          Notes bearing the manual or facsimile signature of individuals who were at any time Authorized
Officers of the Issuer shall bind the Issuer, notwithstanding that such individuals or any of them
have ceased to hold such offices prior to the authentication and delivery of such Notes or did not
hold such offices at the date of such Notes.

          The Indenture Trustee shall upon Issuer Order authenticate and deliver Notes for original
issue in an aggregate principal amount of $2,591,538,000. The aggregate principal amount of Notes
Outstanding at any time may not exceed such amount except as provided in Section 2.5. On each
Spread Determination Date, upon receipt of an Issuer Order, the Indenture Trustee shall deliver a
revised Schedule A for the Reset Rate Notes to the Custodians.

3

 

          Each Note shall be dated the date of its authentication. The Floating Rate Notes shall be
issuable as registered notes in minimum denominations of $100,000 and additional increments of
$1,000.

          During any Reset Period when the Reset Rate Notes are denominated in U.S. Dollars, they shall
be issued in minimum denominations of $100,000, and additional increments of $1,000. During any
Reset Period when the Reset Rate Notes are denominated in a currency other than U.S. Dollars, they
shall be issued in minimum denominations of the applicable currency equivalent (approximately) of
$100,000 and additional increments of the applicable currency equivalent of $1,000 (which shall be
determined by reference to the exchange rate to be set forth in the related Currency Swap
Agreement); provided, that during any Reset Period when the Reset Rate Notes are
denominated in Pounds Sterling, they shall be issued in minimum denominations of £100,000 and
additional increments of £1,000 and provided further, that during any Reset Period
when the Reset Rate Notes are denominated in Euros, they shall be issued in minimum denominations
of €100,000 and additional increments of €1,000.

          No Note shall be entitled to any benefit under this Indenture or be valid or obligatory for
any purpose, unless there appears on such Note a certificate of authentication substantially in the
form provided for herein executed by the Indenture Trustee by the manual signature of one of its
authorized signatories, and such certificate upon any Note shall be conclusive evidence, and the
only evidence, that such Note has been duly authenticated and delivered hereunder.

          SECTION 2.3 Temporary Notes. Pending the preparation of Definitive Notes, the
Issuer may execute, and upon receipt of an Issuer Order the Indenture Trustee shall authenticate
and deliver, temporary Notes which are printed, lithographed, typewritten, mimeographed or
otherwise produced, of the tenor of the Definitive Notes in lieu of which they are issued and with
such variations not inconsistent with the terms of this Indenture determined to be appropriate by
the Responsible Officer of the Issuer executing the temporary Notes, as evidenced by his or her
execution of such temporary Notes.

          If temporary Notes are issued, the Issuer will cause Definitive Notes to be prepared without
unreasonable delay. After the preparation of Definitive Notes, the temporary Notes shall be
exchangeable for Definitive Notes upon surrender of the temporary Notes at the office or agency of
the Issuer to be maintained as provided in Section 3.2, without charge to the Noteholder. Upon
surrender for cancellation of any one or more temporary Notes, the Issuer shall execute and the
Indenture Trustee shall authenticate and deliver in exchange therefor a like principal amount of
Definitive Notes of authorized denominations. Until so exchanged, the temporary Notes shall in all
respects be entitled to the same benefits under this Indenture as Definitive Notes.

          SECTION 2.4 Registration; Registration of Transfer and Exchange. The Issuer shall
cause to be kept a register (the “Note Register”) in which, subject to such reasonable regulations
as it may prescribe, the Issuer shall provide for the registration of Notes and the registration of
transfers of Notes. The Indenture Trustee shall be “Note Registrar” for the purpose of registering
Notes and transfers of Notes as herein provided. Upon any resignation of

4

 

any Note Registrar, the Issuer shall promptly appoint a successor or, if it elects not to make
such an appointment, assume the duties of Note Registrar.

          If a Person other than the Indenture Trustee is appointed by the Issuer as Note Registrar, the
Issuer shall give the Indenture Trustee prompt written notice of the appointment of such Note
Registrar and of the location, and any change in the location, of the Note Register, and the
Indenture Trustee shall have the right to inspect the Note Register at all reasonable times and to
obtain copies thereof, and the Indenture Trustee shall have the right to rely upon a certificate
executed on behalf of the Note Registrar by an Executive Officer thereof as to the names and
addresses of the Noteholders and the principal amounts and number of such Notes.

          Upon surrender for registration of transfer of any Note at the office or agency of the Issuer
to be maintained as provided in Section 3.2 or, with respect to the Reset Rate Notes, to the Note
Registrar or any transfer agent, as applicable, if the requirements of Section 8-401(1) of the UCC
are met, the Issuer shall execute, and the Indenture Trustee shall authenticate and the Noteholder
shall obtain from the Indenture Trustee, in the name of the designated transferee or transferees,
one or more new Notes in any authorized denominations and a like aggregate principal amount.

          At the option of the Noteholder, Notes may be exchanged for other Notes in any authorized
denominations and a like aggregate principal amount, upon surrender of the Notes to be exchanged at
such office or agency. Whenever any Notes are so surrendered for exchange, the Issuer shall
execute, and the Indenture Trustee shall authenticate and the Noteholder shall obtain from the
Indenture Trustee, the Notes which the Noteholder making the exchange is entitled to receive.

          All Notes issued upon any registration of transfer or exchange of Notes shall be the valid
obligations of the Issuer, evidencing the same debt, and entitled to the same benefits under this
Indenture, as the Notes surrendered upon such registration of transfer or exchange.

          Every Note presented or surrendered for registration of transfer or exchange shall be duly
endorsed by, or be accompanied by a written instrument of transfer in form satisfactory to the
Indenture Trustee duly executed by the Noteholder thereof or such Noteholder’s attorney duly
authorized in writing, with such signature guaranteed by an “eligible guarantor institution”
meeting the requirements of the Note Registrar, which requirements include membership or
participation in Securities Transfer Agent’s Medallion Program (“STAMP”) or such other “signature
guarantee program” as may be determined by the Note Registrar in addition to, or in substitution
for, STAMP, all in accordance with the Exchange Act.

          No service charge shall be made to a Noteholder for any registration of transfer or exchange
of Notes, but the Indenture Trustee may require payment of a sum sufficient to cover any tax or
other governmental charge that may be imposed in connection with any registration of transfer or
exchange of Notes, other than exchanges pursuant to Section 2.3 or 9.6 not involving any transfer.

          The preceding provisions of this Section notwithstanding, the Issuer shall not be required to
make and the Note Registrar need not register transfers or exchanges of Notes

5

 

selected for redemption or of any Note for a period of 15 days preceding the due date for any
payment with respect to the Note.

          Any transfer or assignment of any Note or any interest in any Note that is not effected
pursuant to the provisions of this Indenture (including, without limitation, this Section 2.4 and
Section 2.13), such as a transfer or assignment not reflected on the Note Register, shall be null
and void and shall not be taken into account by, or be binding upon, the Indenture Trustee or any
other party.

          SECTION 2.5 Mutilated, Destroyed, Lost or Stolen Notes. If (i) any mutilated Note
is surrendered to the Indenture Trustee, or the Indenture Trustee receives evidence to its
satisfaction of the destruction, loss or theft of any Note, and (ii) there is delivered to the
Issuer and the Indenture Trustee such security or indemnity as may be required by each of them to
hold the Issuer and the Indenture Trustee harmless, then, in the absence of notice to the Issuer,
the Note Registrar or the Indenture Trustee that such Note has been acquired by a bona fide
purchaser, and provided that the requirements of Section 8-405 of the UCC are met, the Issuer shall
execute and upon its request the Indenture Trustee shall authenticate and deliver, in exchange for
or in lieu of any such mutilated, destroyed, lost or stolen Note, a replacement Note;
provided, however, that if any such destroyed, lost or stolen Note, but not a
mutilated Note, shall have become or within 15 days shall be due and payable, or shall have been
called for redemption, instead of issuing a replacement Note, the Issuer may pay such destroyed,
lost or stolen Note when so due or payable or upon the Redemption Date without surrender thereof.
If, after the delivery of such replacement Note or payment of a destroyed, lost or stolen Note
pursuant to the proviso to the preceding sentence, a bona fide purchaser of the original Note in
lieu of which such replacement Note was issued presents for payment such original Note, the Issuer
and the Indenture Trustee shall be entitled to recover such replacement Note (or such payment) from
the Person to whom it was delivered or any Person taking such replacement Note from such Person to
whom such replacement Note was delivered or any assignee of such Person, except a bona fide
purchaser, and shall be entitled to recover upon the security or indemnity provided therefor to the
extent of any loss, damage, cost or expense incurred by the Issuer or the Indenture Trustee in
connection therewith.

          Upon the issuance of any replacement Note under this Section, the Issuer may require the
payment by the Noteholder thereof of a sum sufficient to cover any tax or other governmental charge
that may be imposed in relation thereto and any other reasonable expenses (including the fees and
expenses of the Indenture Trustee) connected therewith.

          Every replacement Note issued pursuant to this Section in replacement of any mutilated,
destroyed, lost or stolen Note shall constitute an original additional contractual obligation of
the Issuer, whether or not the mutilated, destroyed, lost or stolen Note shall be at any time
enforceable by anyone, and shall be entitled to all the benefits of this Indenture equally and
proportionately with any and all other Notes duly issued hereunder.

          The provisions of this Section are exclusive and shall preclude (to the extent lawful) all
other rights and remedies with respect to the replacement or payment of mutilated, destroyed, lost
or stolen Notes.

6

 

          SECTION 2.6 Persons Deemed Owner. Prior to due presentment for registration of
transfer of any Note, the Issuer, the Indenture Trustee and any agent of the Issuer or the
Indenture Trustee may treat the Person in whose name any Note is registered (as of the day of
determination) as the owner of such Note for the purpose of receiving payments of principal of,
interest, if any, on such Note and for all other purposes whatsoever, whether or not such Note be
overdue, and neither the Issuer, the Indenture Trustee nor any agent of the Issuer or the Indenture
Trustee shall be affected by notice to the contrary.

          SECTION 2.7 Payment of Principal and Interest; Note Interest Shortfall. (a) The
Notes shall accrue interest as provided in the forms of Notes in Exhibit A and such interest shall
be payable on each applicable Distribution Date as specified therein, subject to Section 3.1. Any
installment of interest or principal, if any, payable on any Note which is punctually paid or duly
provided for by the Issuer on the applicable Distribution Date shall be paid to the Person in whose
name such Note (or one or more Predecessor Notes) is registered on the applicable Record Date by
check mailed first-class, postage prepaid to such Person’s address as it appears on the Note
Register on such Record Date, except that, unless Definitive Notes have been issued pursuant to
Section 2.12, with respect to Notes registered on the Record Date in the name of the nominee of the
applicable Clearing Agency, for the Notes, payment shall be made by wire transfer in immediately
available funds to the account designated by such nominee and except for the final installment of
principal payable with respect to such Note on a Distribution Date or on the Note Final Maturity
Date for such Note which shall be payable as provided below. The funds represented by any such
checks returned undelivered shall be held in accordance with Section 3.3.

     (b) The principal amount of each class of Floating Rate Notes shall be payable in
installments on each applicable Distribution Date as provided in the forms of Notes set forth in
Exhibit A and the principal amount of the Reset Rate Notes shall be payable on each applicable
Distribution Date as set forth in the forms of Notes set forth in Exhibit A and in Appendix A-2.
Notwithstanding the foregoing, the entire unpaid principal amount of each class of the Notes shall
be due and payable, if not previously paid, on the Note Final Maturity Date for such class of Notes
and on the date on which an Event of Default shall have occurred and be continuing if the Indenture
Trustee or the Noteholders of the Notes representing at least a majority of the Outstanding Amount
of the Notes have declared the Notes to be immediately due and payable in the manner provided in
Section 5.2. All principal payments on the Notes shall be made pro rata to the specific class of
Noteholders entitled thereto. The Indenture Trustee shall notify the Person in whose name a Note
is registered at the close of business on the Record Date preceding the Distribution Date on which
the Issuer expects that the final installment of principal of and interest on such Note will be
paid. Such notice shall be mailed or transmitted by facsimile prior to such final Distribution
Date and shall specify that such final installment will be payable only upon presentation and
surrender of such Note and shall specify the place where such Note may be presented and surrendered
for payment of such installment. Notices in connection with redemptions of Notes shall be mailed
to Noteholders as provided in Section 10.2.

     (c) If the Issuer defaults in a payment of interest at the applicable Note Rate on the
Notes, the Issuer shall pay the resulting Note Interest Shortfall on the following Distribution
Date as provided in the Administration Agreement.

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          SECTION 2.8 Cancellation. All Notes surrendered for payment, registration of
transfer, exchange or redemption shall, if surrendered to any Person other than the Indenture
Trustee, be delivered to the Indenture Trustee and shall be promptly cancelled by the Indenture
Trustee. The Issuer may at any time deliver to the Indenture Trustee for cancellation any Notes
previously authenticated and delivered hereunder which the Issuer may have acquired in any manner
whatsoever and all Notes so delivered shall be promptly cancelled by the Indenture Trustee. No
Notes shall be authenticated in lieu of or in exchange for any Notes cancelled as provided in this
Section, except as expressly permitted by this Indenture. All canceled Notes may be held or
disposed of by the Indenture Trustee in accordance with its standard retention or disposal policy
as in effect at the time, unless the Issuer shall direct by an Issuer Order that they be returned
to it and so long as such Issuer Order is timely and the Notes have not been previously disposed of
by the Indenture Trustee.

          SECTION 2.9 Release of Collateral. Subject to Sections 11.1 and 11.19 and the
terms of the Basic Documents, the Indenture Trustee shall release property from the lien of this
Indenture only upon receipt of an Issuer Request accompanied by an Officers’ Certificate of the
Issuer, an Opinion of Counsel and Independent Certificates in accordance with TIA §§ 314(c) and
314(d)(1) or an Opinion of Counsel in lieu of such Independent Certificates to the effect that the
TIA does not require any such Independent Certificates.

          SECTION 2.10 Book-Entry Notes. The Notes, upon original issuance, will be issued in
the form of typewritten Notes representing the Book-Entry Notes, to be delivered to The Depository
Trust Company, as initial Clearing Agency, by the Issuer, or on behalf of the Issuer. Such Notes
shall initially be registered on the Note Register in the name of Cede & Co., the nominee of The
Depository Trust Company, and no Note Owner shall receive a definitive, fully registered note (a
“Definitive Note”) representing such Note Owner’s interest in such Note, except as provided in
Section 2.12. Unless and until Definitive Notes have been issued to Note Owners pursuant to
Section 2.12:

          (i) the provisions of this Section shall be in full force and effect;

          (ii) the Note Registrar and the Indenture Trustee, and their respective directors, officers,
employees and agents, may deal with the applicable Clearing Agency for all purposes (including the
payment of principal of and interest and other amounts on the Notes) as the authorized
representative of the Note Owners;

          (iii) to the extent that the provisions of this Section conflict with any other provisions
of this Indenture, the provisions of this Section shall control;

          (iv) the rights of Note Owners shall be exercised only through the applicable Clearing
Agency and shall be limited to those established by law and agreements between such Note Owners and
the applicable Clearing Agency and/or the applicable Clearing Agency Participants pursuant to the
Note Depository Agreements; and unless and until Definitive Notes are issued pursuant to Section
2.12, the initial Clearing Agency will make book-entry transfers among the applicable Clearing
Agency Participants and receive and transmit payments of principal of and interest and other
amounts on the Notes to such applicable Clearing Agency Participants;

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          (v) whenever this Indenture requires or permits actions to be taken based upon instructions
or directions of Noteholders of Notes evidencing a specified percentage of the Outstanding Amount
of the Notes, the applicable Clearing Agency shall be deemed to represent such percentage only to
the extent that it has received instructions to such effect from Note Owners and/or applicable
Clearing Agency Participants owning or representing, respectively, such required percentage of the
beneficial interest in the Notes and has delivered such instructions to the Indenture Trustee; and

          (vi) upon acquisition or transfer of a beneficial interest in any Book-Entry Note by, for or
with the assets of, a Benefit Plan, such Note Owner shall be deemed to have represented that such
acquisition or purchase will not constitute or otherwise result in: (i) in the case of a Benefit
Plan subject to Title I of ERISA or Section 4975 of the Code, a non-exempt prohibited transaction
in violation of Section 406 of ERISA or Section 4975 of the Code which is not covered by a class or
other applicable exemption and (ii) in the case of a Benefit Plan subject to a substantially
similar federal, state, local or foreign law, a non-exempt violation of such substantially similar
law. Any transfer found to have been made in violation of such deemed representation shall be null
and void and of no effect.

          SECTION 2.11 Notices to Clearing Agency. Whenever a notice or other communication
is required under this Indenture to be given to Noteholders, unless and until Definitive Notes
shall have been issued to Note Owners pursuant to Section 2.12, the Indenture Trustee shall give
all such notices and communications specified herein to the applicable Clearing Agency.

          SECTION 2.12 Definitive Notes. If (i) the Administrator advises the Indenture
Trustee in writing that a Clearing Agency (a) is closed for business for a continuous period of 14
days (other than by reason of holiday, statutory or otherwise), (b) announces an intention to cease
business permanently (or does so and no alternative clearing system acceptable to the Indenture
Trustee is then available), or (c) at any time, is unwilling or unable to continue as, or ceases to
be, a clearing agency registered under all applicable laws, and a successor clearing agency which
is registered as a clearing agency under all applicable laws is not appointed by the Administrator
within 90 days of such event, (ii) the Administrator at its option advises the Indenture Trustee in
writing that it elects to terminate the book-entry system through that Clearing Agency or (iii)
after the occurrence of an Event of Default, a Servicer Default or an Administrator Default, Note
Owners representing beneficial interests aggregating at least a majority of the Outstanding Amount
of the applicable Notes advise the applicable Clearing Agency (which shall then notify the
Indenture Trustee) in writing that the continuation of a book-entry system through such Clearing
Agency is no longer in the best interests of such Note Owners, then the Indenture Trustee shall
cause such Clearing Agency to notify all Note Owners cleared, through such Clearing Agency, of the
occurrence of any such event and of the availability of Definitive Notes to Note Owners requesting
the same. Upon surrender to the Indenture Trustee of the typewritten Notes representing the
Book-Entry Notes by a Clearing Agency, accompanied by registration instructions, the Issuer shall
execute and the Indenture Trustee shall authenticate the Definitive Notes in accordance with the
instructions of such Clearing Agency, which shall include, without limitation, the identity and
payment instructions for all Noteholders of the applicable Notes. None of the Issuer, the Note
Registrar or the Indenture Trustee shall be liable for any delay in delivery of such instructions
and may

9

 

conclusively rely on, and shall be protected in relying on, such instructions. Upon the
issuance of Definitive Notes, the Indenture Trustee shall recognize the holders of the Definitive
Notes as Noteholders.

          Upon acquisition or transfer of a Definitive Note by, for or with the assets of, a Benefit
Plan, such Note Owner shall be deemed to have represented that such acquisition or purchase will
not constitute or otherwise result in: (i) in the case of a Benefit Plan subject to Title I of
ERISA or Section 4975 of the Code, a non-exempt prohibited transaction in violation of Section 406
of ERISA or Section 4975 of the Code which is not covered by a class or other applicable exemption
and (ii) in the case of a Benefit Plan subject to a substantially similar law, a non-exempt
violation of such substantially similar law. Any transfer found to have been made in violation of
such deemed representation shall be null and void and of no effect.

ARTICLE III

Covenants

          SECTION 3.1 Payments to Noteholders and each Swap Counterparty. The Issuer shall
duly and punctually pay the principal and interest, if any, with respect to the Notes in accordance
with the terms of the Notes and this Indenture and shall duly and punctually pay amounts, if any,
owing to each Swap Counterparty in accordance with the terms of this Indenture and the related Swap
Agreement. Without limiting the foregoing, the Issuer shall cause to be distributed to Noteholders
and each Swap Counterparty in accordance with the Administration Agreement that portion of the
amounts on deposit in the Trust Accounts on a Distribution Date (other than any Eligible
Investments deposited therein that will mature on the Business Day preceding a subsequent
Distribution Date) or with respect to any Swap Counterparty amounts on deposit in the relevant
Trust Accounts on the date such payment is due under the related Swap Agreement, which the
Noteholders and any Swap Counterparty are entitled to receive pursuant to Sections 2.7 and 2.8 of
the Administration Agreement. Amounts properly withheld under the Code by any Person from a
payment to any Noteholder of interest and/or principal shall be considered as having been paid by
the Issuer to such Noteholder for all purposes of this Indenture.

          SECTION 3.1A Collateral Account. In the event that pursuant to the terms of any
applicable Swap Agreement, a related Swap Counterparty (or its credit support provider) is required
to deposit cash or securities as collateral to secure its obligations (“Swap Collateral”), the
Indenture Trustee shall establish and maintain one or more Eligible Deposit Accounts in the name of
the Indenture Trustee for the benefit of the Issuer and such Swap Counterparty (each a “Swap
Agreement Collateral Account”). All sums on deposit and securities held in any Swap Agreement
Collateral Account shall be used only for the purposes set forth in the related credit support
agreement to be entered into between the Trust and the related Swap Counterparty (a “Credit Support
Agreement”). Amounts on deposit in any Swap Agreement Collateral Account may be invested in
Eligible Investments at the written direction of the related Swap Counterparty and on each
Distribution Date, all Investment Earnings actually received by the Indenture Trustee on amounts on
deposit in a Swap Agreement Collateral Account or on securities held by the Indenture Trustee as
Swap Collateral shall be paid directly to the related Swap Counterparty and not become part of
Available Funds in accordance with the terms of the Credit Support

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Agreement. All amounts deposited in a Swap Agreement Collateral Account shall be paid to the
Issuer (and become part of Available Funds on the related Distribution Date) or returned to the
related Swap Counterparty, from time to time, in accordance with the provisions set forth in the
related Credit Support Agreement.

          SECTION 3.2 Maintenance of Office or Agency. The Issuer shall maintain in the
Borough of Manhattan, The City of New York and in Luxembourg, so long as any of the Notes are
listed on the Luxembourg Stock Exchange and the rules of such exchange so require, or in such other
jurisdiction if any of the Notes are listed on another stock exchange of international standing and
the rules of such other exchange so require, an office or agency where Notes may be surrendered for
registration of transfer or exchange, and where notices and demands to or upon the Issuer in
respect of the Notes and this Indenture may be served. The Issuer hereby initially appoints the
Indenture Trustee to serve as its agent for the foregoing purposes. The Issuer shall give prompt
written notice to the Indenture Trustee of the location, and of any change in the location, of any
such office or agency. If at any time the Issuer shall fail to maintain any such office or agency
or shall fail to furnish the Indenture Trustee with the address thereof, such surrenders, notices
and demands may be made or served at the Corporate Trust Office, and the Issuer hereby appoints the
Indenture Trustee as its agent to receive all such surrenders, notices and demands.

          SECTION 3.3 Money for Payments to be Held in Trust. As provided in Section 8.2(a)
and (b), all payments of amounts due and payable with respect to any Notes or any Swap Agreement
that are to be made from amounts distributed from the Collection Account, or deposited into the
Collection Account from the Supplemental Purchase Account, the Add-On Consolidation Loan Account,
the Capitalized Interest Account or the Reserve Account, pursuant to Sections 2.7 and 2.8 of the
Administration Agreement shall be made on behalf of the Issuer by the Indenture Trustee or by
another Paying Agent, and no amounts so distributed from the Collection Account for payments to
Noteholders or any Swap Counterparty shall be paid over to the Issuer except as provided in this
Section.

          On or before the Business Day next preceding each Distribution Date and Redemption Date, the
Issuer shall distribute or cause to be distributed to the Indenture Trustee (or any other Paying
Agent) an aggregate sum sufficient to pay the amounts then becoming due under the Notes or any Swap
Agreement, such sum to be held in trust for the benefit of the Persons entitled thereto and (unless
the Paying Agent is the Indenture Trustee) shall promptly notify the Indenture Trustee of its
action or failure so to act.

          The Issuer shall cause each Paying Agent other than the Indenture Trustee to execute and
deliver to the Indenture Trustee an instrument in which such Paying Agent shall agree with the
Indenture Trustee (and if the Indenture Trustee acts as Paying Agent, it hereby so agrees), subject
to the provisions of this Section, that such Paying Agent will:

          (i) hold all sums held by it for the payment of amounts due with respect to the Notes or any
Swap Agreement in trust for the benefit of the Persons entitled thereto until such sums shall be
paid to such Persons or otherwise disposed of as herein provided and pay such sums to such Persons
as herein provided;

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          (ii) give the Indenture Trustee notice of any default by the Issuer of which it has actual
knowledge (or any other obligor upon the Notes) in the making of any payment required to be made
with respect to the Notes or any Swap Agreement;

          (iii) at any time during the continuance of any such default, upon the written request of
the Indenture Trustee, forthwith pay to the Indenture Trustee all sums so held in trust by such
Paying Agent;

          (iv) immediately resign as a Paying Agent and forthwith pay to the Indenture Trustee all
sums held by it in trust for the payments due under the Notes or any Swap Agreement if at any time
it ceases to meet the standards required to be met by a Paying Agent at the time of its
appointment; and

          (v) comply with all requirements of the Code with respect to the withholding from any
payments made by it on any Notes of any applicable withholding taxes imposed thereon and with
respect to any applicable reporting requirements in connection therewith.

          The Issuer may at any time, for the purpose of obtaining the satisfaction and discharge of
this Indenture or for any other purpose, by Issuer Order direct any Paying Agent to pay to the
Indenture Trustee all sums held in trust by such Paying Agent, such sums to be held by the
Indenture Trustee upon the same trusts as those upon which the sums were held by such Paying Agent;
and upon such payment by any Paying Agent to the Indenture Trustee, such Paying Agent shall be
released from all further liability with respect to such money.

          Subject to applicable laws with respect to escheat of funds, any money held by the Indenture
Trustee or any Paying Agent in trust for the payment of any amount due with respect to any Note and
remaining unclaimed for two years after such amount has become due and payable shall be discharged
from such trust and be paid to the Issuer on Issuer Request or if the Issuer has been terminated to
the Depositor upon its written request; and the Noteholder thereof shall thereafter, as an
unsecured general creditor, look only to the Issuer for payment thereof (but only to the extent of
the amounts so paid to the Issuer), and all liability of the Indenture Trustee or such Paying Agent
with respect to such trust money shall thereupon cease; provided, however, that the
Indenture Trustee or such Paying Agent, before being required to make any such repayment, shall at
the expense and direction of the Issuer cause to be published once, in a newspaper published in the
English language, customarily published on each Business Day and of general circulation in The City
of New York and in Luxembourg, so long as any of the Notes are listed on the Luxembourg Stock
Exchange and the rules of such Exchange so require, or in such other jurisdiction if any of the
Notes are listed on another stock exchange of international standing and the rules of such other
exchange so require, notice that such money remains unclaimed and that, after a date specified
therein, which shall not be less than 30 days from the date of such publication, any unclaimed
balance of such money then remaining will be repaid to the Issuer. The Indenture Trustee shall
also adopt and employ, at the expense of the Issuer, any other reasonable means of notification of
such repayment (including mailing notice of such repayment to Noteholders whose Notes have been
called but have not been surrendered for redemption or whose right to or interest in moneys due and
payable but not claimed is

12

 

determinable from the records of the Indenture Trustee or of any Paying Agent, at the last
address of record for each such Noteholder).

          SECTION 3.4 Existence. The Issuer shall keep in full effect its existence, rights
and franchises as a statutory trust under the laws of the State of Delaware (unless it becomes, or
any successor Issuer hereunder is or becomes, organized under the laws of any other State or of the
United States of America, in which case the Issuer shall keep in full effect its existence, rights
and franchises under the laws of such other jurisdiction) and shall obtain and preserve its
qualification to do business in each jurisdiction in which such qualification is or shall be
necessary to protect the validity and enforceability of this Indenture, the Notes, the Collateral
and each other instrument or agreement included in the Indenture Trust Estate.

          SECTION 3.5 Protection of Indenture Trust Estate. The Issuer will from time to time
execute and deliver all such supplements and amendments hereto, all such financing statements and
continuation statements and will take such other action necessary or advisable to:

          (i) maintain or preserve the lien and security interest (and the priority thereof) of this
Indenture or carry out more effectively the purposes hereof;

          (ii) perfect, publish notice of or protect the validity of any grant made or to be made by
this Indenture;

          (iii) enforce any of the Collateral; or

          (iv) preserve and defend title to the Indenture Trust Estate and the rights of the Indenture
Trustee, the Noteholders and each Swap Counterparty in such Indenture Trust Estate against the
claims of all persons and parties.

          The Issuer hereby designates the Indenture Trustee its agent and attorney-in-fact to execute
any financing statement, continuation statement or other instrument required to be executed
pursuant to this Section.

          SECTION 3.6 Opinions as to Indenture Trust Estate. (a) On the Closing Date, the
Issuer shall furnish to the Indenture Trustee an Opinion of Counsel either stating that, in the
opinion of such counsel, such action has been taken with respect to the recording and filing of
this Indenture as is necessary to perfect and make effective the lien and security interest of this
Indenture and reciting the details of such action, or stating that, in the opinion of such counsel,
no such action is necessary to make such lien and security interest effective.

     (b) On or before December 31 in each calendar year, beginning in 2005, the Issuer shall
furnish to the Indenture Trustee an Opinion of Counsel either stating that, in the opinion of such
counsel, such action has been taken with respect to the recording, filing, re-recording and
refiling of this Indenture and any indentures supplemental hereto as is necessary to maintain the
lien and security interest created by this Indenture and relating the details of such action or
stating that in the opinion of such counsel no such action is necessary to maintain such lien and
security interest. Such Opinion of Counsel shall also describe the recording, filing, recording
and refiling of this Indenture and any indentures supplemental hereto that will, in the opinion of

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such counsel, be required to maintain the lien and security interest of this Indenture until
December 31 in the following calendar year.

          SECTION 3.7 Performance of Obligations; Servicing of Trust Student Loans. (a) The
Issuer will not take any action and will use its best efforts not to permit any action to be taken
by others that would release any Person from any of such Person’s material covenants or obligations
under any instrument or agreement included in the Indenture Trust Estate or that would result in
the amendment, hypothecation, subordination, termination or discharge of, or impair the validity or
effectiveness of, any such instrument or agreement, except as expressly provided in this Indenture,
any other Basic Document or such other instrument or agreement.

     (b) The Issuer may contract with other Persons to assist it in performing its duties under
this Indenture, and any performance of such duties by a Person identified to the Indenture Trustee
in an Officers’ Certificate of the Issuer shall be deemed to be action taken by the Issuer;
provided, however, the Issuer shall not be liable for any acts of Persons with whom
the Issuer has contracted with reasonable care. Initially, the Issuer has contracted with the
Servicer and the Administrator to assist the Issuer in performing its duties under this Indenture.
The Issuer shall give written notice to the Indenture Trustee and each Rating Agency of any such
contract with any other Person.

     (c) The Issuer shall punctually perform and observe all of its obligations and agreements
contained in this Indenture, the other Basic Documents and the instruments and agreements included
in the Indenture Trust Estate, including filing or causing to be filed all UCC financing statements
and continuation statements prepared by the Issuer and required to be filed by the terms of this
Indenture and the Administration Agreement in accordance with and within the time periods provided
for herein and therein. Except as otherwise expressly provided therein, the Issuer shall not
waive, amend, modify, supplement or terminate any Basic Document or any provision thereof without
the consent of the Indenture Trustee or the Noteholders of at least a majority of the Outstanding
Amount of the Notes; provided, for the avoidance of doubt, that a transfer or assignment by
a Swap Counterparty of any of its interests or obligations in accordance with the requirements of
any applicable Swap Agreement (including the requirement that each Rating Agency then rating the
Notes issue written acknowledgment that, notwithstanding such transfer or assignment, the
then-current rating of the Notes will not be downgraded) shall not constitute a waiver, amendment,
modification, supplement or termination of the applicable Swap Agreement or any provision thereof
and shall not require the consent of the Indenture Trustee or the Noteholders of at least a
majority of the Outstanding Amount of the Notes. The Issuer shall give written notice to each
Rating Agency or any such waiver, amendment, modification, supplement or termination that requires
the consent of the Indenture Trustee or the Noteholders of at least a majority of the Outstanding
Amount of the Notes.

     (d) If a Responsible Officer of the Issuer shall have knowledge of the occurrence of a
Servicer Default or an Administrator Default under the Servicing Agreement or the Administration
Agreement, respectively, the Issuer shall promptly notify the Indenture Trustee and the Rating
Agencies thereof, and shall specify in such notice the action, if any, the Issuer is taking with
respect to such default. If a Servicer Default shall arise from the failure of the Servicer to
perform any of its duties or obligations under the Servicing Agreement, or an Administrator Default
shall arise from the failure of the Administrator to perform any of its

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duties or obligations under the Administration Agreement, as the case may be, with respect to
the Trust Student Loans, the Issuer shall take all reasonable steps available to it to enforce its
rights under the Basic Documents in respect of such failure.

     (e) As promptly as possible after the giving of notice of termination to the Servicer of the
Servicer’s rights and powers, pursuant to Section 5.1 of the Servicing Agreement, or to the
Administrator of the Administrator’s rights and powers, pursuant to Section 5.1 of the
Administration Agreement, the Issuer shall appoint a successor servicer (the “Successor Servicer”)
or a successor administrator (the “Successor Administrator”), respectively, and such Successor
Servicer or Successor Administrator, as the case may be, shall accept its appointment by a written
assumption in a form acceptable to the Indenture Trustee. In the event that a Successor Servicer
or Successor Administrator has not been appointed and accepted its appointment at the time when the
Servicer or Administrator, as the case may be, ceases to act as Servicer or Administrator,
respectively, the Indenture Trustee without further action shall automatically be appointed the
Successor Servicer or Successor Administrator, as the case may be. The Indenture Trustee may
resign as the Successor Servicer or the Successor Administrator by giving written notice of
resignation to the Issuer and in such event will be released from such duties and obligations, such
release not to be effective until the date a new servicer or a new administrator enters into an
agreement with the Issuer as provided below; provided, however, that nothing herein
shall require or permit the Indenture Trustee to act as Servicer, or otherwise service the Trust
Student Loans, in violation of the Higher Education Act. Upon delivery of any such notice to the
Issuer, the Issuer shall obtain a new servicer as the Successor Servicer under the Servicing
Agreement or a new administrator as the Successor Administrator under the Administration Agreement,
as the case may be. Any Successor Servicer or Successor Administrator, other than the Indenture
Trustee, shall (i) be an established institution (A) that satisfies any requirements of the Higher
Education Act applicable to servicers and (B) whose regular business includes the servicing or
administration of student loans and (ii) enter into a servicing agreement or an administration
agreement, respectively, with the Issuer having substantially the same provisions as the provisions
of the Servicing Agreement and the Administration Agreement, as applicable. If within 30 days
after the delivery of the notice referred to above, the Issuer shall not have obtained such a new
servicer or new administrator, as the case may be, the Indenture Trustee may appoint, or may
petition a court of competent jurisdiction to appoint, a Successor Servicer or Successor
Administrator; provided, however, that such right to appoint or to petition for the
appointment of any such successor shall in no event relieve the Indenture Trustee from any
obligations otherwise imposed on it under the Basic Documents until such successor has in fact
assumed such appointment. In connection with any such appointment, the Indenture Trustee may make
such arrangements for the compensation of such successor as it and such successor shall agree,
subject to the limitations set forth below and in the Servicing Agreement or Administration
Agreement, as applicable, and in accordance with Section 5.2 of the Servicing Agreement and Section
5.2 of the Administration Agreement, the Issuer shall enter into an agreement with such successor
for the servicing or administration of the Trust Student Loans (such agreement to be in form and
substance satisfactory to the Indenture Trustee). If the Indenture Trustee shall succeed as
provided herein to the Servicer’s duties as Servicer with respect to the Trust Student Loans, or
the Administrator’s duties with respect to the Issuer and the Trust Student Loans, as the case may
be, it shall do so in its individual capacity and not in its capacity as Indenture Trustee and,
accordingly, the provisions of Article VI hereof shall be inapplicable to the Indenture Trustee in
its duties as the successor to the Servicer or the

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Administrator, as the case may be, and the servicing or administration of the Trust Student
Loans. In case the Indenture Trustee shall become successor to the Servicer or the Administrator,
the Indenture Trustee shall be entitled to appoint as Servicer or as Administrator, as the case may
be, any one of its Affiliates, provided that such appointment shall not affect or alter in any way
the liability of the Indenture Trustee as Successor Servicer or Successor Administrator,
respectively, in accordance with the terms hereof.

     (f) Upon any termination of the Servicer’s rights and powers pursuant to the Servicing
Agreement, or any termination of the Administrator’s rights and powers pursuant to the
Administration Agreement, as the case may be, the Issuer shall promptly notify the Indenture
Trustee and each Rating Agency. As soon as a Successor Servicer or a Successor Administrator is
appointed, the Issuer shall notify the Indenture Trustee and each Rating Agency of such
appointment, specifying in such notice the name and address of such Successor Servicer or such
Successor Administrator.

     (g) Without derogating from the absolute nature of the assignment granted to the Indenture
Trustee under this Indenture or the rights of the Indenture Trustee hereunder, the Issuer agrees
that it will not, without the prior written consent of the Indenture Trustee or the Noteholders of
at least a majority in Outstanding Amount of the Notes, amend, modify, waive, supplement, terminate
or surrender, or agree to any amendment, modification, supplement, termination, waiver or surrender
of, the terms of any Collateral or the Basic Documents, except to the extent otherwise provided in
the Basic Documents, or waive timely performance or observance by the Servicer, the Administrator,
the Depositor, any Excess Distribution Certificateholder, SLM ECFC, VG Funding, the Issuer, the
Eligible Lender Trustee or any Swap Counterparty under the Basic Documents; provided,
however, that no such amendment shall (i) increase or reduce in any manner the amount of,
or accelerate or delay the timing of, distributions that are required to be made for the benefit of
the Noteholders or any Swap Counterparty, or (ii) reduce the aforesaid percentage of the Notes
which are required to consent to any such amendment, without the consent of the Noteholders of all
the Outstanding Notes. If any such amendment, modification, supplement or waiver shall be so
consented to by the Indenture Trustee or such Noteholders, the Issuer shall give written notice
thereof to each Rating Agency and agrees, promptly following a request by the Indenture Trustee to
do so, to execute and deliver, in its own name and at its own expense, such agreements,
instruments, consents and other documents as the Indenture Trustee may deem necessary or
appropriate in the circumstances.

     SECTION 3.8 Negative Covenants. So long as any Notes are Outstanding, the Issuer
shall not:

     (i) except as expressly permitted by this Indenture or any other Basic Document, sell,
transfer, exchange or otherwise dispose of any of the properties or assets of the Issuer, including
those included in the Indenture Trust Estate, unless directed to do so by the Indenture Trustee;

     (ii) claim any credit on, or make any deduction from the principal or interest payable in
respect of, the Notes (other than amounts properly withheld from such payments under the Code or
applicable state law) or assert any claim against any present or

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former Noteholder by reason of the payment of the taxes levied or assessed upon any part of
the Indenture Trust Estate;

          (iii) (A) permit the validity or effectiveness of this Indenture to be impaired, or permit
the lien of this Indenture to be amended, hypothecated, subordinated, terminated or discharged, or
permit any Person to be released from any covenants or obligations with respect to the Notes under
this Indenture except as may be expressly permitted hereby, (B) permit any lien, charge, excise,
claim, security interest, mortgage or other encumbrance (other than the lien of this Indenture) to
be created on or extend to or otherwise arise upon or burden the Indenture Trust Estate or any part
thereof or any interest therein or the proceeds thereof (other than tax liens and other liens that
arise by operation of law, and other than as expressly permitted by the Basic Documents) or (C)
permit the lien of this Indenture not to constitute a valid first priority (other than with respect
to any such tax or other lien) security interest in the Indenture Trust Estate; or

          (iv) enter into any amendment to any Swap Agreement to cure any ambiguity in, or to correct
or supplement any provision of any Swap Agreement, unless the Issuer has determined, and the
Indenture Trustee has agreed in writing at the written direction of the Issuer, that the amendment
will not materially adversely affect the interests of the Noteholders and provided that the Issuer
has provided reasonable notice to the Rating Agencies of such amendment and the Rating Agency
Condition is satisfied.

          SECTION 3.9 Annual Statement as to Compliance. The Issuer will deliver to the
Indenture Trustee and each Rating Agency, within 90 days after the end of each fiscal year of the
Issuer (commencing with the fiscal year ending December 31, 2005), an Officers’ Certificate of the
Issuer stating that:

          (i) a review of the activities of the Issuer during such year and of performance under this
Indenture has been made under such Authorized Officers’ supervision; and

          (ii) to the best of such Authorized Officers’ knowledge, based on such review, the Issuer
has complied with all conditions and covenants under this Indenture throughout such year, or, if
there has been a default in the compliance of any such condition or covenant, specifying each such
default known to such Authorized Officers and the nature and status thereof.

          SECTION 3.10 Issuer May Consolidate, etc., Only on Certain Terms.

     (a) The Issuer shall not consolidate or merge with or into any other Person, unless:

          (i) the Person (if other than the Issuer) formed by or surviving such consolidation or
merger shall be a Person organized and existing under the laws of the United States of America or
any State and shall expressly assume, by an indenture supplemental hereto, executed and delivered
to the Indenture Trustee, in form satisfactory to the Indenture Trustee, the due and punctual
payment of the principal of, and interest, if any, on all Notes and the performance or observance
of every agreement and covenant of this Indenture and the other Basic Documents on the part of the
Issuer to be performed or observed, all as provided herein;

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          (ii) immediately after giving effect to such transaction, no Default shall have occurred and
be continuing;

          (iii) the Rating Agency Condition shall have been satisfied with respect to such
transaction;

          (iv) the Issuer shall have received an Opinion of Counsel (and shall have delivered copies
thereof to the Indenture Trustee) to the effect that such transaction will not have any material
adverse Federal or Delaware state tax consequence to the Issuer or any Noteholder or any Swap
Counterparty;

          (v) any action as is necessary to maintain the lien and security interest created by this
Indenture shall have been taken; and

          (vi) the Issuer shall have delivered to the Indenture Trustee an Officers’ Certificate of
the Issuer and an Opinion of Counsel each stating that such consolidation or merger and such
supplemental indenture comply with this Article III and that all conditions precedent herein
provided for relating to such transaction have been complied with (including any filing required by
the Exchange Act).

     (b) The Issuer shall not convey or transfer all or substantially all of its properties or
assets, including those included in the Indenture Trust Estate, to any Person, unless:

          (i) the Person that acquires by conveyance or transfer the properties and assets of the
Issuer the conveyance or transfer of which is hereby restricted shall (A) be a United States
citizen or a Person organized and existing under the laws of the United States of America or any
State, (B) expressly assume, by an indenture supplemental hereto, executed and delivered to the
Indenture Trustee, in form satisfactory to the Indenture Trustee, the due and punctual payment of
the principal of, and interest, if any, on all Notes and the performance or observance of every
agreement and covenant of this Indenture on the part of the Issuer to be performed or observed, all
as provided herein, (C) expressly agree by means of such supplemental indenture that all right,
title and interest so conveyed or transferred shall be subject and subordinate to the rights of
Noteholders and any Currency Swap Counterparty, (D) unless otherwise provided in such supplemental
indenture, expressly agree to indemnify, defend and hold harmless the Issuer against and from any
loss, liability or expense arising under or related to this Indenture and the Notes and (E)
expressly agree by means of such supplemental indenture that such Person (or if a group of Persons,
then one specified Person) shall make all filings with the Commission (and any other appropriate
Person) required by the Exchange Act in connection with the Notes;

          (ii) immediately after giving effect to such transaction, no Default shall have occurred and
be continuing;

          (iii) the Rating Agency Condition shall have been satisfied with respect to such
transaction;

          (iv) the Issuer shall have received an Opinion of Counsel (and shall have delivered copies
thereof to the Indenture Trustee) to the effect that such transaction will not have any material
adverse Federal or Delaware state tax consequence to the Issuer or any Noteholder;

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          (v) any action as is necessary to maintain the lien and security interest created by this
Indenture shall have been taken; and

          (vi) the Issuer shall have delivered to the Indenture Trustee an Officers’ Certificate of
the Issuer and an Opinion of Counsel each stating that such conveyance or transfer and such
supplemental indenture comply with this Article III and that all conditions precedent herein
provided for relating to such transaction have been complied with (including any filing required by
the Exchange Act).

          SECTION 3.11 Successor or Transferee. (a) Upon any consolidation or merger of the
Issuer in accordance with Section 3.10(a), the Person formed by or surviving such consolidation or
merger (if other than the Issuer) shall succeed to, and be substituted for, and may exercise every
right and power of, the Issuer under this Indenture with the same effect as if such Person had been
named as the Issuer herein.

     (b) Upon a conveyance or transfer of all the assets and properties of the Issuer pursuant to
Section 3.10(b), SLM Student Loan Trust 2005-8 will be released from every covenant and agreement
of this Indenture to be observed or performed on the part of the Issuer with respect to the Notes
immediately upon the delivery by the Issuer of written notice to the Indenture Trustee stating that
SLM Student Loan Trust 2005-8 is to be so released.

          SECTION 3.12 No Other Business. The Issuer shall not engage in any business other
than financing, purchasing, owning, selling and managing the Trust Student Loans and the other
assets of the Issuer and related proceeds thereof in addition to entering into the Initial Interest
Rate Swap Agreement on the Closing Date and any other Swap Agreements, as applicable, from time to
time on the related Reset Date, in the manner contemplated by this Indenture and the other Basic
Documents and activities incidental thereto.

          SECTION 3.13 No Borrowing. The Issuer shall not issue, incur, assume, guarantee or
otherwise become liable, directly or indirectly, for any indebtedness except for the Notes.

          SECTION 3.14 Obligations of Servicer and Administrator. The Issuer shall cause the
Servicer to comply with Sections 3.1, 3.2 and 3.3 of the Administration Agreement and Section 3.7
of the Servicing Agreement and the Administrator to comply with Sections 2.11, 3.1, 3.2 and 3.3 of
the Administration Agreement.

          SECTION 3.15 Guarantees, Loans, Advances and Other Liabilities. Except as
contemplated by this Indenture and the other Basic Documents, the Issuer shall not make any loan or
advance or credit to, or guarantee (directly or indirectly or by an instrument having the effect of
assuring another’s payment or performance on any obligation or capability of so doing or
otherwise), endorse or otherwise become contingently liable, directly or indirectly, in connection
with the obligations, stocks or dividends of, or own, purchase, repurchase or acquire (or agree
contingently to do so) any stock, obligations, assets or securities of, or any other interest in,
or make any capital contribution to, any other Person.

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          SECTION 3.16 Capital Expenditures. The Issuer shall not make any expenditure (by
long-term or operating lease or otherwise) for capital assets (either realty or personalty).

          SECTION 3.17 Restricted Payments. The Issuer shall not, directly or indirectly, (i)
pay any dividend or make any distribution (by reduction of capital or otherwise), whether in cash,
property, securities or a combination thereof, to the Eligible Lender Trustee or any owner of a
beneficial interest in the Issuer or otherwise with respect to any ownership or equity interest or
security in or of the Issuer or to the Servicer or the Administrator, (ii) redeem, purchase, retire
or otherwise acquire for value any such ownership or equity interest or security or (iii) set aside
or otherwise segregate any amounts for any such purpose; provided, however, that
the Issuer may make, or cause to be made, distributions to the Servicer, the Eligible Lender
Trustee, the Indenture Trustee, the Noteholders, any Swap Counterparty, any Remarketing Agent, the
Administrator, the Depositor and the Excess Distribution Certificateholder as contemplated by, and
to the extent funds are available for such purpose under, this Indenture and the other Basic
Documents. The Issuer will not, directly or indirectly, make payments to or distributions from the
Collection Account except in accordance with this Indenture and the other Basic Documents.

          SECTION 3.18 Notice of Events of Default. The Issuer shall give the Indenture
Trustee, the Rating Agencies and each Swap Counterparty prompt written notice of each Event of
Default hereunder. The Issuer shall give the Indenture Trustee, the Rating Agencies and each Swap
Counterparty prompt written notice of each default on the part of (i) the Depositor of its
obligations under the Sale Agreement, (ii) SLM ECFC of its obligations under the SLM ECFC Purchase
Agreement, (iii) VG Funding of its obligations under the VG Funding Purchase Agreement, (iv) the
Servicer of its obligations under the Servicing Agreement, or (v) the Administrator of its
obligations under the Administration Agreement. In addition, the Issuer shall deliver to the
Indenture Trustee, each Rating Agency and each Swap Counterparty, within five days after the
occurrence thereof, written notice in the form of an Officers’ Certificate of the Issuer of any
event which with the giving of notice and the lapse of time would become an Event of Default under
Section 5.1(iii), its status and what action the Issuer is taking or proposes to take with respect
thereto.

          SECTION 3.19 Further Instruments and Acts. Upon request of the Indenture Trustee,
the Issuer will execute and deliver such further instruments and do such further acts as may be
reasonably necessary or proper to carry out more effectively the purpose of this Indenture.

ARTICLE IV

Satisfaction and Discharge

          SECTION 4.1 Satisfaction and Discharge of Indenture. This Indenture shall cease to
be of further effect with respect to the Notes except as to (i) rights of registration of transfer
and exchange, (ii) substitution of mutilated, destroyed, lost or stolen Notes, (iii) rights of
Noteholders to receive payments of principal thereof and interest thereon, (iv) Sections 3.3, 3.4,
3.5, 3.8, 3.10, 3.12 and 3.13, (v) the rights, obligations and immunities of the Indenture Trustee
hereunder (including, without limitation, the rights of the Indenture Trustee under Section 6.7

20

 

and the obligations of the Indenture Trustee under Section 4.2) and (vi) the rights of
Noteholders as beneficiaries hereof with respect to the property so deposited with the Indenture
Trustee payable to all or any of them, and the Indenture Trustee, on demand of and at the expense
of the Issuer, shall execute proper instruments acknowledging satisfaction and discharge of this
Indenture with respect to the Notes, when:

     (a) either

          (1) all Notes theretofore authenticated and delivered (other than (i) Notes that have been
destroyed, lost or stolen and that have been replaced or paid as provided in Section 2.5 and (ii)
Notes for whose payment money has theretofore been deposited in trust or segregated and held in
trust by the Issuer and thereafter repaid to the Issuer or discharged from such trust, as provided
in Section 3.3) have been delivered to the Indenture Trustee for cancellation; or

          (2) all Notes not theretofore delivered to the Indenture Trustee for cancellation:

               (i) have become due and payable,

               (ii) will become due and payable at their respective Note Final Maturity Date, within one
year, or

               (iii) are to be called for redemption within one year under arrangements satisfactory to the
Indenture Trustee for the giving of notice of redemption by the Indenture Trustee in the name, and
at the expense, of the Issuer, and the Issuer, in the case of (i), (ii) or (iii) above, has
irrevocably deposited or caused to be irrevocably deposited with the Indenture Trustee cash or
direct obligations of or obligations guaranteed by the United States of America (which will mature
prior to the date such amounts are payable), in trust for such purpose, in an amount sufficient to
pay and discharge the entire indebtedness on such Notes not theretofore delivered to the Indenture
Trustee for cancellation when due to the Note Final Maturity Date;

     (b) the Issuer has paid or caused to be paid all other sums payable hereunder by the Issuer;
and

     (c) the Issuer has delivered to the Indenture Trustee an Officers’ Certificate of the
Issuer, an Opinion of Counsel and (if required by the TIA or the Indenture Trustee) an Independent
Certificate from a firm of certified public accountants, each meeting the applicable requirements
of Section 11.1(a) and, subject to Section 11.2, each stating that all conditions precedent herein
provided for relating to the satisfaction and discharge of this Indenture have been complied with.

          SECTION 4.2 Application of Trust Money. All moneys deposited with the Indenture
Trustee pursuant to Section 4.1 hereof shall be held in trust and applied by it, in accordance with
the provisions of the Notes and this Indenture, to the payment, either directly or through any
Paying Agent, as the Indenture Trustee may determine, to the Noteholders of the particular Notes or
to any Swap Counterparty, as applicable, for the payment or redemption of which such moneys have
been deposited with the Indenture Trustee, of all sums due and to become due thereon for principal
and interest; but such moneys need not be segregated from

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other funds except to the extent required herein or in the Administration Agreement or
required by law.

          SECTION 4.3 Repayment of Moneys Held by Paying Agent. In connection with the
satisfaction and discharge of this Indenture with respect to the Notes, all moneys then held by any
Paying Agent other than the Indenture Trustee under the provisions of this Indenture with respect
to such Notes shall, upon demand of the Issuer, be paid to the Indenture Trustee to be held and
applied according to Section 3.3 and thereupon such Paying Agent shall be released from all further
liability with respect to such moneys.

          SECTION 4.4 Auction of Trust Student Loans. On the date (the “Trust Auction Date”)
that is three Business Days prior to the Distribution Date immediately following the end of the
first Collection Period when the Pool Balance is equal to 10% or less of the Initial Pool Balance,
any Trust Student Loans remaining in the Trust shall be offered for sale by the Indenture Trustee
unless the Servicer has exercised its option to purchase the Trust Estate as described in Section
6.1(a) of the Administration Agreement with respect to such Distribution Date. The Servicer will
be deemed to have waived such option if it fails to notify the Eligible Lender Trustee and the
Indenture Trustee of its exercise thereof in writing prior to the Indenture Trustee’s acceptance of
a bid to purchase such Trust Student Loans; provided, however, that there shall be
no such offer for sale if the Indenture Trustee fails to provide notice to the Servicer in
accordance with this Section 4.4. The Indenture Trustee shall provide written notice to the
Servicer of any such offer for sale at least 5 Business Days in advance of the Trust Auction Date.
The Indenture Trustee shall permit the Depositor or any of its Affiliates, including SLM ECFC, VG
Funding and the Servicer, to offer bids only if the Pool Balance as of the applicable Trust Auction
Date is equal to 10% or less of the Initial Pool Balance, and such bid does not exceed the fair
market value of the Trust Student Loans as of the Trust Auction Date. If at least two bids are
received, the Indenture Trustee shall solicit and resolicit new bids from all participating bidders
until only one bid remains or the remaining bidders decline to resubmit bids. The Indenture
Trustee shall accept the highest of such remaining bids if it is equal to or in excess of both (i)
the Minimum Purchase Amount plus any amounts owed to any Swap Counterparty for Swap Payments and
Swap Termination Payments and amounts to any Remarketing Agent for any unpaid remarketing fees and
expenses, and any Carryover Servicing Fees and (ii) the fair market value of such Trust Student
Loans as of the end of the Collection Period immediately preceding the Trust Auction Date. If at
least two bids are not received or the highest bid after the resolicitation process is completed is
not equal to or in excess of the higher of (i) the Minimum Purchase Amount plus any amounts owed to
any Swap Counterparty for Swap Payments and Swap Termination Payments and amounts to any
Remarketing Agent for any unpaid remarketing fees and expenses, and any Carryover Servicing Fees
and (ii) the fair market value of the Trust Student Loans, the Indenture Trustee shall not
consummate such sale. The Indenture Trustee may consult, and, at the direction of the Depositor,
shall consult, with a financial advisor, including an Underwriter of the Notes or the
Administrator, to determine if the fair market value of the Trust Student Loans has been offered.
The proceeds of any such sale will be paid at the time set forth in Section 2.6 of the
Administration Agreement and applied in the order of priority set forth in Section 5.4(b). If the
sale is not consummated in accordance with the foregoing, the Indenture Trustee may, but shall not
be under any obligation to, solicit bids for sale of the Trust Student Loans with respect to future
Distribution Dates upon terms similar to those described above, including the Servicer’s waiver of
its option to purchase the Trust Estate in accordance

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with Section 6.1(a) of the Administration Agreement with respect to each such future
Distribution Date.

ARTICLE V

Remedies

          SECTION 5.1 Events of Default. “Event of Default,” wherever used herein, means any
one of the following events (whatever the reason for such Event of Default and whether it shall be
voluntary or involuntary or be effected by operation of law or pursuant to any judgment, decree or
order of any court or any order, rule or regulation of any administrative or governmental body):

          (i) default in the payment of any interest on any Note when the same becomes due and
payable, and such default shall continue for a period of five days; or

          (ii) default in the payment of the principal of any Note when the same becomes due and
payable on the related Note Final Maturity Date; or

          (iii) default in the observance or performance of any covenant or agreement of the Issuer
made in this Indenture (other than a covenant or agreement, a default in the observance or
performance of which is elsewhere in this Section specifically dealt with), or any representation
or warranty of the Issuer made in this Indenture or in any certificate or other writing having been
incorrect in any material respect as of the time when made, such default or breach having a
material adverse effect on the holders of the Notes, and such default or breach shall continue or
not be cured, or the circumstance or condition in respect of which such misrepresentation or
warranty was incorrect shall not have been eliminated or otherwise cured, for a period of 30 days
after there shall have been given, by registered or certified mail, to the Issuer by the Indenture
Trustee or to the Issuer and the Indenture Trustee by the Noteholders of at least 25% of the
Outstanding Amount of the Notes, a written notice specifying such default or incorrect
representation or warranty and requiring it to be remedied and stating that such notice is a notice
of Default hereunder; or

          (iv) the filing of a decree or order for relief by a court having jurisdiction in the
premises in respect of the Issuer or any substantial part of the Indenture Trust Estate in an
involuntary case under any applicable Federal or state bankruptcy, insolvency or other similar law
now or hereafter in effect, or appointing a receiver, liquidator, assignee, custodian, trustee,
sequestrator or similar official of the Issuer or for any substantial part of the Indenture Trust
Estate, or ordering the winding-up or liquidation of the Issuer’s affairs, and such decree or order
shall remain unstayed and in effect for a period of 60 consecutive days; or

          (v) the commencement by the Issuer of a voluntary case under any applicable Federal or state
bankruptcy, insolvency or other similar law now or hereafter in effect, or the consent by the
Issuer to the entry of an order for relief in an involuntary case under any such law, or the
consent by the Issuer to the appointment or taking possession by a receiver, liquidator, assignee,
custodian, trustee, sequestrator or similar official of the Issuer or for any substantial part of
the Indenture Trust Estate, or the making by the Issuer of any general

23

 

assignment for the benefit of creditors, or the failure by the Issuer generally to pay its
debts as such debts become due, or the taking of action by the Issuer in furtherance of any of the
foregoing.

          SECTION 5.2 Acceleration of Maturity; Rescission and Annulment. If an Event of
Default should occur and be continuing, then and in every such case the Indenture Trustee or the
Noteholders representing at least a majority of the Outstanding Amount of the Notes may declare all
the Notes to be immediately due and payable, by a notice in writing to the Issuer (and to the
Indenture Trustee if given by Noteholders), and upon any such declaration the unpaid principal
amount of such Notes, together with accrued and unpaid interest thereon through the date of
acceleration, shall become immediately due and payable, subject, however, to Section 5.4 of this
Indenture.

          At any time after such declaration of acceleration of maturity has been made and before a
judgment or decree for payment of the money due has been obtained by the Indenture Trustee as
hereinafter in this Article V provided, the Noteholders of Notes representing at least a majority
of the Outstanding Amount of the Notes, by written notice to the Issuer and the Indenture Trustee,
may rescind and annul such declaration and its consequences if:

          (i) the Issuer has paid or deposited with the Indenture Trustee a sum sufficient to pay:

               (a) all payments of principal of and interest on all Notes and all other
amounts that would then be due hereunder or upon such Notes if the Event of Default
giving rise to such acceleration had not occurred; and

               (b) all sums paid or advanced by the Indenture Trustee hereunder and the
reasonable compensation, expenses, disbursements and advances of the Indenture
Trustee and its agents and counsel; and

          (ii) all Events of Default, other than the nonpayment of the principal of the Notes that has
become due solely by such acceleration, have been cured or waived as provided in Section 5.12.

          No such rescission shall affect any subsequent default or impair any right consequent thereto.

          SECTION 5.3 Collection of Indebtedness and Suits for Enforcement by Indenture
Trustee. The Issuer covenants that if (i) default is made in the payment of any interest on
any Note when the same becomes due and payable, and such default continues for a period of five
days, or (ii) default is made in the payment of the principal of any Note when the same becomes due
and payable at the related Note Final Maturity Date, the Issuer shall, upon demand of the Indenture
Trustee, pay to it, for the benefit of the Noteholders, the whole amount then due and payable on
such Notes for principal and interest, with interest upon the overdue principal, and, to the extent
payment at such rate of interest shall be legally enforceable, upon overdue installments of
interest, at the rate specified in Section 2.7 and in addition thereto such further amount as shall
be sufficient to cover the costs and expenses of collection, including the

24

 

reasonable compensation, expenses, disbursements and advances of the Indenture Trustee and its
agents and counsel.

     (a) In case the Issuer shall fail forthwith to pay such amounts upon such demand, the
Indenture Trustee, in its own name and as trustee of an express trust, may institute a Proceeding
for the collection of the sums so due and unpaid, and may prosecute such Proceeding to judgment or
final decree, and may enforce the same against the Issuer or other obligor upon such Notes and
collect in the manner provided by law out of the property of the Issuer or other obligor upon such
Notes, wherever situated, the moneys adjudged or decreed to be payable.

     (b) If an Event of Default occurs and is continuing, the Indenture Trustee may, as more
particularly provided in Section 5.4, in its discretion, proceed to protect and enforce its rights
and the rights of the Noteholders and any Currency Swap Counterparty by such appropriate
Proceedings as the Indenture Trustee shall deem most effective to protect and enforce any such
rights, whether for the specific enforcement of any covenant or agreement in this Indenture or in
aid of the exercise of any power granted herein, or to enforce any other proper remedy or legal or
equitable right vested in the Indenture Trustee by this Indenture or by law.

     (c) In case there shall be pending, relative to the Issuer or any other obligor upon the
Notes or any Person having or claiming an ownership interest in the Indenture Trust Estate,
Proceedings under Title 11 of the United States Code or any other applicable Federal or state
bankruptcy, insolvency or other similar law, or in case a receiver, assignee or trustee in
bankruptcy or reorganization, liquidator, sequestrator or similar official shall have been
appointed for or taken possession of the Issuer or its property or such other obligor or Person, or
in case of any other, comparable judicial Proceedings relative to the Issuer or other obligor upon
the Notes, or to the creditors or property of the Issuer or such other obligor, the Indenture
Trustee, irrespective of whether the principal of any Notes shall then be due and payable, as
therein expressed or by declaration or otherwise and irrespective of whether the Indenture Trustee
shall have made any demand pursuant to the provisions of this Section, shall be entitled and
empowered, by intervention in such proceedings or otherwise:

          (i) to file and prove a claim or claims for the whole amount of principal and interest owing
and unpaid in respect of the Notes and to file such other papers or documents as may be necessary
or advisable in order to have the claims of the Indenture Trustee (including any claim for
reasonable compensation to the Indenture Trustee and each predecessor Indenture Trustee, and their
respective agents, attorneys and counsel, and for reimbursement of all expenses and liabilities
incurred, and all advances made, by the Indenture Trustee and each predecessor Indenture Trustee,
except as a result of negligence or bad faith) and of the Noteholders allowed in such Proceedings;

          (ii) unless prohibited by applicable law and regulations, to vote on behalf of the
Noteholders (and, if applicable, any Currency Swap Counterparty) in any election of a trustee, a
standby trustee or Person performing similar functions in any such Proceedings;

          (iii) to collect and receive any moneys or other property payable or deliverable on any such
claims and to distribute all amounts received with respect to the claims

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of the Noteholders, any Currency Swap Counterparty and the Indenture Trustee on their behalf;
and

          (iv) to file such proofs of claim and other papers or documents as may be necessary or
advisable in order to have the claims of the Indenture Trustee, any Currency Swap Counterparty or
the Noteholders allowed in any judicial Proceedings relative to the Issuer, its creditors and its
property;

          and any trustee, receiver, liquidator, custodian or other similar official in any such
Proceeding is hereby authorized by each of such Noteholders and any Currency Swap Counterparty to
make payments to the Indenture Trustee, and, in the event that the Indenture Trustee shall consent
to the making of payments directly to such Noteholders and any Currency Swap Counterparty to pay to
the Indenture Trustee such amounts as shall be sufficient to cover reasonable compensation to the
Indenture Trustee, each predecessor Indenture Trustee and their respective agents, attorneys and
counsel, and all other expenses and liabilities incurred, and all advances made, by the Indenture
Trustee and each predecessor Indenture Trustee except as a result of negligence or bad faith.

     (d) Nothing herein contained shall be deemed to authorize the Indenture Trustee to authorize
or consent to or vote for or accept or adopt on behalf of any Noteholder any plan of
reorganization, arrangement, adjustment or composition affecting the Notes or the rights of any
Noteholder thereof or to authorize the Indenture Trustee to vote in respect of the claim of any
Noteholder in any such proceeding except, as aforesaid, to vote for the election of a trustee in
bankruptcy or similar Person.

     (e) All rights of action and of asserting claims under this Indenture, or under any of the
Notes, may be enforced by the Indenture Trustee without the possession of any of the Notes or the
production thereof in any trial or other Proceedings relative thereto, and any such action or
Proceedings instituted by the Indenture Trustee shall be brought in its own name as trustee of an
express trust, and any recovery of judgment, subject to the payment of the expenses, disbursements
and compensation of the Indenture Trustee, each predecessor Indenture Trustee and their respective
agents and attorneys, shall be for the ratable benefit of the Noteholders, and after the Notes have
been paid in full, and subject to the provisions of Section 11.19, any Currency Swap Counterparty.

     (f) In any Proceedings brought by the Indenture Trustee (and also any Proceedings involving
the interpretation of any provision of this Indenture to which the Indenture Trustee shall be a
party), the Indenture Trustee shall be held to represent all the Noteholders and each Currency Swap
Counterparty, and it shall not be necessary to make any Noteholder or any Currency Swap
Counterparty a party to any such Proceedings.

          SECTION 5.4 Remedies; Priorities. If an Event of Default shall have occurred and
be continuing, the Indenture Trustee may do one or more of the following (subject to Section 5.5):

     (a) (i) institute Proceedings in its own name and as trustee of an express trust for the
collection of all amounts then payable on the Notes or under this Indenture with respect

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thereto, whether by declaration or otherwise, enforce any judgment obtained, and collect from
the Issuer and any other obligor upon such Notes moneys adjudged due;

          (ii) institute Proceedings from time to time for the complete or partial foreclosure of this
Indenture, with respect to the Indenture Trust Estate;

          (iii) exercise any remedies of a secured party under the UCC with respect to the Trust
Estate and take any other appropriate action to protect and enforce the rights and remedies of the
Indenture Trustee, any Currency Swap Counterparty and the Noteholders;

          (iv) sell the Indenture Trust Estate or any portion thereof or rights or interest therein,
at one or more public or private sales called and conducted in any manner permitted by law; and/or

          (v) elect to have the Eligible Lender Trustee maintain ownership of the Trust Student Loans
and continue to apply collections with respect to the Trust Student Loans as if there had been no
declaration of acceleration;

provided, however, that the Indenture Trustee may not sell or otherwise liquidate
the Indenture Trust Estate following an Event of Default, other than an Event of Default described
in Section 5.1(i) or (ii) with respect to the Class A Notes, unless (A) the Noteholders of 100% of
the Outstanding Amount of the Class A Notes consent thereto, (B) the proceeds of such sale or
liquidation distributable to the Class A Noteholders are sufficient to discharge in full all
amounts then due and unpaid upon such Class A Notes for principal and interest or (C) the Indenture
Trustee determines that the Indenture Trust Estate will not continue to provide sufficient funds
for the payment of principal of and interest on the Class A Notes as would have become due if the
Class A Notes had not been declared due and payable, and the Indenture Trustee obtains the consent
of Noteholders of 66-2/3% of the Outstanding Amount of the Class A Notes; provided,
further, that the Indenture Trustee may not sell or otherwise liquidate the Indenture Trust
Estate following an Event of Default, other than an Event of Default described in Section 5.1(i) or
(ii) with respect to the Class A Notes, unless (D) the proceeds of such sale or liquidation
distributable to the Class B Noteholders plus the proceeds of the sale or liquidation of the Trust
Estate distributable to the Class B Noteholders are sufficient to pay to the Class B Noteholders
the Outstanding Amount of the Class B Notes plus accrued and unpaid interest thereon or (E) after
receipt of notice from the Eligible Lender Trustee that the proceeds of such sale or liquidation
distributable to the Class B Noteholders plus the proceeds of the sale or liquidation of the Trust
Estate distributable to the Class B Noteholders would not be sufficient to pay to the Class B
Noteholders the outstanding principal plus accrued and unpaid interest thereon, the Class B
Noteholders of at least a majority of the Outstanding Amount of the Class B Notes consent thereto.
In determining such sufficiency or insufficiency with respect to clauses (B), (C), (D) and (E), the
Indenture Trustee may, but need not, obtain and rely upon an opinion of an Independent investment
banking or accounting firm of national reputation as to the feasibility of such proposed action and
as to the sufficiency of the Indenture Trust Estate and/or Trust Estate, as applicable, for such
purpose.

     (b) Notwithstanding the provisions of Section 8.2, following the occurrence and during the
continuation of an Event of Default specified in Section 5.1(i), 5.1(ii), 5.1(iv) or

27

 

5.1(v) which has resulted in an acceleration of the Notes, if the Indenture Trustee collects
any money or property, it shall pay out the money or property (and other amounts including amounts,
if any, held on deposit in each of the Trust Accounts) held as Collateral for the benefit of the
Noteholders, net of liquidation costs associated with the sale of the assets of the Trust, in the
following order:

          FIRST:

	 	 	 	 	 
	 

	 	A:
	 	to the Noteholders of the Reset Rate Notes if they are
denominated in U.S. Dollars and then structured not to receive a payment of
principal until the end of their Reset Period, the amount, if any, on deposit
in the Accumulation Account for the Reset Rate Notes (excluding any Investment
Earnings thereon) in reduction of the Outstanding Amount of the Reset Rate
Notes until they are paid in full; and/or
	 
	 	 	 	 
	 

	 	B:
	 	to the related Currency Swap Counterparty if the Reset Rate
Notes are then in Foreign Exchange Mode and are then structured not to receive
a payment of principal until the end of their Reset Period, the amount, if any,
on deposit in the related Accumulation Account for the Reset Rate Notes
(excluding any Investment Earnings thereon) in reduction of the Outstanding
Amount of the Reset Rate Notes until they are paid in full;

	 	 	 	 	 
	 

	 	SECOND:
	 	to the Indenture Trustee for amounts due under Section 6.7;
	 
	 	 	 	 
	 

	 	THIRD:
	 	to the Servicer for due and unpaid Primary Servicing Fees;
	 
	 	 	 	 
	 

	 	FOURTH:
	 	to the Administrator, any due and unpaid Administration Fees;
	 
	 	 	 	 
	 

	 	FIFTH:
	 	pro rata, based on amounts due and owing:

	 	 	 	 	 
	 

	 	A:
	 	to the Class A Noteholders (other than the noteholders of the
Reset Rate Notes if a Swap Agreement with respect to interest payments to be
made to such noteholders is then in effect), for amounts due and unpaid on the
Class A Notes for interest at the applicable Note Rate, ratably, without
preference or priority of any kind, according to the amounts due and payable on
the Class A Notes for such interest;
	 
	 	 	 	 
	 

	 	B:
	 	if a Swap Agreement is then in effect for the Reset Rate
Noteholders with respect to interest payments to be made to such noteholders,
to each Swap Counterparty, the amount of any Swap Interest Payments due and
payable by the Issuer (other than as paid to that Swap Counterparty under
clause FIRST); and
	 
	 	 	 	 
	 

	 	C:
	 	if any Swap Agreement with respect to the Reset Rate Notes has
been terminated, to the related Swap Counterparty, the amount of any Swap
Termination Payments due to such Swap Counterparty due to a Termination Event
or Event of Default (as defined in the related Swap Agreement) resulting from a
payment default under the related Swap

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	 	 	 	Agreement by the Issuer, a non-rescindable, non-waivable acceleration of the
Notes, or the bankruptcy or insolvency of the Issuer.

          SIXTH:

	 	 	 	 	 
	 

	 	A:
	 	If the Reset Rate Notes are in Foreign Exchange Mode, pro rata
(1) to the Class A Noteholders (other than the holders of any such class of
Reset Rate Notes then in Foreign Exchange Mode), ratably, an amount sufficient
to reduce the respective principal balance of those Class A Notes to zero, and
(2) to the applicable Currency Swap Counterparties an amount sufficient to
reduce the U.S. Dollar Equivalent Principal Amount of the Reset Rate Notes then
in Foreign Exchange Mode to zero; or
	 
	 	 	 	 
	 

	 	B:
	 	if the Reset Rate Notes are then denominated in U.S. Dollars,
pro rata to the Class A Noteholders, ratably, an amount sufficient to reduce
the respective principal balance of those Class A Notes to zero;

          SEVENTH: to the Class B Noteholders for amounts due and unpaid on the Class B Notes for
interest at the Class B Note Rate;

          EIGHTH: to the Class B Noteholders, an amount sufficient to reduce the Outstanding Amount of
the Class B Notes to zero;

          NINTH: to the Servicer, for any unpaid Carryover Servicing Fees;

          TENTH: to any Swap Counterparties, pro rata, the amount of any Swap Termination Payments due
to such Swap Counterparties by the Issuer and not payable in Clause FIFTH (C);

          ELEVENTH: to the Remarketing Agents, any due and unpaid Remarketing Fees payable by the Issuer
to the extent not previously paid from amounts on deposit in the Remarketing Fee Account;

          TWELFTH: sequentially, first to the Remarketing Agents, and second to the Administrator for
any advances made on behalf of the Issuer, in each case, for payment of certain costs and expenses
as set forth in Section 3 of the Remarketing Agreement in connection with the remarketing of the
Reset Rate Notes not previously reimbursed by the Issuer; and

          THIRTEENTH: to the Excess Distribution Certificateholder, any remaining funds.

          If the Trust has entered into a Currency Swap Agreement and such Currency Swap Agreement
terminates, amounts that would have otherwise been paid to the related Currency Swap Counterparty
(other than amounts payable as a Termination Payment thereunder) will be used to make payments to
the Reset Rate Noteholders in an amount in the applicable non-U.S. Dollar currency, equal to the
payment that the related Currency Swap Counterparty would have made. If this occurs, the Trust
will exchange U.S. Dollars for the applicable non-U.S. Dollar currency in order to make
distributions on the Reset Rate Notes.

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          The Indenture Trustee may fix a record date and payment date for any payment to Noteholders
pursuant to this Section. At least 15 days before such record date, the Indenture Trustee shall
mail to each Noteholder and the Issuer a notice that states the record date, the payment date and
the amount to be paid.

          SECTION 5.5 Optional Preservation of the Trust Student Loans. If the Notes have
been declared to be due and payable under Section 5.2 following an Event of Default and such
declaration and its consequences have not been rescinded and annulled, the Indenture Trustee may,
but need not, elect to maintain possession of the Indenture Trust Estate. It is the desire of the
parties hereto and the Noteholders that there be at all times sufficient funds for the payment of
principal of and interest on the Notes, and the Indenture Trustee shall take such desire into
account when determining whether or not to maintain possession of the Indenture Trust Estate. In
determining whether to maintain possession of the Indenture Trust Estate, the Indenture Trustee
may, but need not, obtain and rely upon an opinion of an Independent investment banking or
accounting firm of national reputation as to the feasibility of such proposed action and as to the
sufficiency of the Indenture Trust Estate for such purpose.

          SECTION 5.6 Limitation of Suits. No Noteholder shall have any right to institute
any Proceeding, judicial or otherwise, with respect to this Indenture, or for the appointment of a
receiver or trustee, or for any other remedy hereunder, unless:

          (i) such Noteholder has previously given written notice to the Indenture Trustee of a
continuing Event of Default;

          (ii) the Noteholders of not less than 25% of the Outstanding Amount of the Notes have made
written request to the Indenture Trustee to institute such Proceeding in respect of such Event of
Default in its own name as Indenture Trustee hereunder;

          (iii) such Noteholder or Noteholders have offered to the Indenture Trustee reasonable
indemnity against the costs, expenses and liabilities to be incurred in complying with such
request;

          (iv) the Indenture Trustee for 60 days after its receipt of such notice, request and offer
of indemnity has failed to institute such Proceeding; and

          (v) no direction inconsistent with such written request has been given to the Indenture
Trustee during such 60-day period by the Noteholders of at least a majority of the Outstanding
Amount of the Notes;

          it being understood and intended that no one or more Noteholders shall have any right in any
manner whatever by virtue of, or by availing of, any provision of this indenture to affect, disturb
or prejudice the rights of any other Noteholders or to obtain or to seek to obtain priority or
preference over any other Noteholders or to enforce any right under this Indenture, except in the
manner herein provided.

          In the event the Indenture Trustee shall receive conflicting or inconsistent requests and
indemnity from two or more groups of Noteholders, each representing less than a majority of the
Outstanding Amount of the Notes, the Indenture Trustee in its sole discretion

30

 

may determine what action, if any, shall be taken, notwithstanding any other provisions of
this Indenture.

          SECTION 5.7 Unconditional Rights of Noteholders to Receive Principal and Interest.
Notwithstanding any other provisions in this Indenture, each Noteholder shall have the right, which
is absolute and unconditional, to receive payment of the principal of and interest on its Note on
or after the respective due dates thereof expressed in such Note or in this Indenture (or, in the
case of redemption, on or after the Redemption Date) and to institute suit for the enforcement of
any such payment, and such right shall not be impaired without the consent of such Noteholder.

          SECTION 5.8 Restoration of Rights and Remedies. If the Indenture Trustee or any
Noteholder has instituted any Proceeding to enforce any right or remedy under this Indenture and
such Proceeding has been discontinued or abandoned for any reason or has been determined adversely
to the Indenture Trustee or to such Noteholder, then and in every such case the Issuer, the
Indenture Trustee and the Noteholders shall, subject to any determination in such Proceeding, be
restored severally and respectively to their former positions hereunder, and thereafter all rights
and remedies of the Indenture Trustee and the Noteholders shall continue as though no such
Proceeding had been instituted.

          SECTION 5.9 Rights and Remedies Cumulative. No right or remedy herein conferred
upon or reserved to the Indenture Trustee, any Swap Counterparty or to the Noteholders is intended
to be exclusive of any other right or remedy, and every right and remedy shall, to the extent
permitted by law, be cumulative and in addition to every other right and remedy given hereunder or
now or hereafter existing at law or in equity or otherwise. The assertion or employment of any
right or remedy hereunder, or otherwise, shall not prevent the concurrent assertion or employment
of any other appropriate right or remedy.

          SECTION 5.10 Delay or Omission Not a Waiver. No delay or omission of the Indenture
Trustee, any Swap Counterparty or any Noteholder to exercise any right or remedy accruing upon any
Default shall impair any such right or remedy or constitute a waiver of any such Default or an
acquiescence therein. Every right and remedy given by this Article V or by law to the Indenture
Trustee, any Swap Counterparty or to the Noteholders may be exercised from time to time, and as
often as may be deemed expedient, by the Indenture Trustee, any Swap Counterparty or by the
Noteholders, as the case may be.

          SECTION 5.11 Control by Noteholders. The Noteholders of at least a majority of the
Outstanding Amount of the Notes shall have the right to direct the time, method and place of
conducting any Proceeding for any remedy available to the Indenture Trustee with respect to the
Notes or exercising any trust or power conferred on the Indenture Trustee; provided that

          (i) such direction shall not be in conflict with any rule of law or with this Indenture;

          (ii) subject to the express terms of Section 5.4, any direction to the Indenture Trustee to
sell or liquidate the Indenture Trust Estate shall be by the Noteholders of not less than 100% of
the Outstanding Amount of the Notes;

31

 

          (iii) if the conditions set forth in Section 5.5 have been satisfied and the Indenture
Trustee elects to retain the Indenture Trust Estate pursuant to such Section, then any direction to
the Indenture Trustee by Noteholders of less than 100% of the Outstanding Amount of the Notes to
sell or liquidate the Indenture Trust Estate shall be of no force and effect; and

          (iv) the Indenture Trustee may take any other action deemed proper by the Indenture Trustee
that is not inconsistent with such direction;

provided, however, that, subject to Section 6.1, the Indenture Trustee need not
take any action that it determines might involve it in liability or might materially adversely
affect the rights of any Noteholders not consenting to such action.

          SECTION 5.12 Waiver of Past Defaults. Prior to the time a judgment or decree for
payment of money due has been obtained as described in Section 5.2, the Noteholders of at least a
majority of the Outstanding Amount of the Notes may waive any past Default and its consequences
except a Default (a) in payment when due of principal of or interest on any of the Notes or (b) in
respect of a covenant or provision hereof which cannot be modified or amended without the consent
of each Noteholder. In the case of any such waiver, the Issuer, the Indenture Trustee and the
Noteholders shall be restored to their former positions and rights hereunder, respectively; but no
such waiver shall extend to any subsequent or other Default or impair any right consequent thereto.

          Upon any such waiver, such Default shall cease to exist and be deemed to have been cured and
not to have occurred for every purpose of this Indenture; but no such waiver shall extend to any
subsequent or other Default or impair any right consequent thereto.

          SECTION 5.13 Undertaking for Costs. All parties to this Indenture agree, and each
Noteholder by such Noteholder’s acceptance of any Note shall be deemed to have agreed, that any
court may in its discretion require, in any suit for the enforcement of any right or remedy under
this Indenture, or in any suit against the Indenture Trustee for any action taken, suffered or
omitted by it as Indenture Trustee, the filing by any party litigant in such suit of an undertaking
to pay the costs of such suit, and that such court may in its discretion assess reasonable costs,
including reasonable attorneys’ fees, against any party litigant in such suit, having due regard to
the merits and good faith of the claims or defenses made by such party litigant; but the provisions
of this Section shall not apply to (a) any suit instituted by the Indenture Trustee, (b) any suit
instituted by any Noteholder, or group of Noteholders, in each case holding in the aggregate more
than 10% of the Outstanding Amount of the Notes or (c) any suit Instituted by any Noteholder for
the enforcement of the payment of principal of or interest on any Note on or after the respective
due dates expressed in such Note and in this Indenture (or, in the case of redemption, on or after
the Redemption Date).

          SECTION 5.14 Waiver of Stay or Extension Laws. The Issuer covenants (to the extent
that it may lawfully do so) that it will not at any time insist upon, or plead or in any manner
whatsoever, claim or take the benefit or advantage of, any stay or extension law wherever enacted,
now or at any time hereafter in force, that may affect the covenants or the performance of this
Indenture; and the Issuer (to the extent that it may lawfully do so) hereby expressly waives all
benefit or advantage of any such law, and covenants that it will not hinder,

32

 

delay or impede the execution of any power herein granted to the Indenture Trustee, but will
suffer and permit the execution of every such power as though no such law had been enacted.

          SECTION 5.15 Action on Notes. The Indenture Trustee’s right to seek and recover
judgment on the Notes or under this Indenture shall not be affected by the seeking, obtaining or
application of any other relief under or with respect to this Indenture. Neither the lien of this
Indenture nor any rights or remedies of the Indenture Trustee or the Noteholders shall be impaired
by the recovery of any judgment by the Indenture Trustee against the Issuer or by the levy of any
execution under such judgment upon any portion of the Indenture Trust Estate or upon any of the
assets of the Issuer. Any money or property collected by the Indenture Trustee shall be applied in
accordance with Section 5.4(b).

          SECTION 5.16 Performance and Enforcement of Certain Obligations.

     (a) Promptly following a request from the Indenture Trustee to do so and at the
Administrator’s expense, the Issuer shall take all such lawful action as the Indenture Trustee may
request to compel or secure the performance and observance by the Depositor, SLM ECFC, VG Funding,
the Administrator and the Servicer, as applicable, of each of their respective obligations to the
Issuer, whether directly or by assignment, under or in connection with the Sale Agreement, the SLM
ECFC Purchase Agreement, the VG Funding Purchase Agreement, the Administration Agreement and the
Servicing Agreement, respectively, in accordance with the terms thereof, and to exercise any and
all rights, remedies, powers and privileges lawfully available to the Issuer under or in connection
with the Sale Agreement, the SLM ECFC Purchase Agreement, the VG Funding Purchase Agreement, the
Administration Agreement and the Servicing Agreement, as the case may be, to the extent and in the
manner directed by the Indenture Trustee, including the transmission of notices of default on the
part of the Depositor, SLM ECFC, VG Funding, the Administrator or the Servicer thereunder and the
institution of legal or administrative actions or proceedings to compel or secure performance by
the Depositor, SLM ECFC, VG Funding, the Administrator or the Servicer of each of their obligations
under the Sale Agreement, the SLM ECFC Purchase Agreement, the VG Funding Purchase Agreement, the
Administration Agreement and the Servicing Agreement, respectively.

     (b) If an Event of Default has occurred and is continuing, the Indenture Trustee may, and at
the written direction of the Noteholders of 66-2/3% of the Outstanding Amount of the Notes shall,
exercise all rights, remedies, powers, privileges and claims of the Issuer against the Depositor,
SLM ECFC, VG Funding, the Administrator or the Servicer under or in connection with the Sale
Agreement, the SLM ECFC Purchase Agreement, the VG Funding Purchase Agreement, the Administration
Agreement and the Servicing Agreement, respectively, including the right or power to take any
action to compel or secure performance or observance by the Depositor, SLM ECFC, VG Funding, the
Administrator or the Servicer of each of their obligations to the Issuer thereunder, whether
directly or by assignment, and to give any consent, request, notice, direction, approval, extension
or waiver under the Sale Agreement, the SLM ECFC Purchase Agreement, the VG Funding Purchase
Agreement, the Administration Agreement and the Servicing Agreement, respectively, and any right of
the Issuer to take such action shall be suspended.

33

 

ARTICLE VI

The Indenture Trustee

          SECTION 6.1 Duties of Indenture Trustee. (a) If an Event of Default has occurred
and is continuing, the Indenture Trustee shall exercise the rights and powers vested in it by this
Indenture and use the same degree of care and skill in its exercise as a prudent person would
exercise or use under the circumstances in the conduct of such person’s own affairs.

     (b) Except during the continuance of an Event of Default:

          (i) the Indenture Trustee undertakes to perform such duties and only such duties as are
specifically set forth in this Indenture and no implied covenants or obligations shall be read into
this Indenture against the Indenture Trustee; and

          (ii) in the absence of bad faith on its part, the Indenture Trustee may conclusively rely,
as to the truth of the statements and the correctness of the opinions expressed therein, upon
certificates or opinions furnished to the Indenture Trustee and conforming to the requirements of
this Indenture; provided, however, that the Indenture Trustee shall examine the
certificates and opinions to determine whether or not they conform to the requirements of this
Indenture.

     (c) The Indenture Trustee may not be relieved from liability for its own negligent action,
its own negligent failure to act or its own willful misconduct, except that:

          (i) this paragraph does not limit the effect of paragraph (b) of this Section;

          (ii) the Indenture Trustee shall not be liable for any error of judgment made in good faith
by a Responsible Officer unless it is proved that the Indenture Trustee was negligent in
ascertaining the pertinent facts; and

          (iii) the Indenture Trustee shall not be liable with respect to any action it takes or omits
to take in good faith in accordance with a direction received by it pursuant to Section 5.11.

     (d) The Indenture Trustee shall not be liable for interest on any money received by it
except as the Indenture Trustee may agree in writing with the Issuer.

     (e) Money held in trust by the Indenture Trustee need not be segregated from other funds
except to the extent required by law or the terms of this Indenture or the other Basic Documents.

     (f) No provision of this Indenture shall require the Indenture Trustee to expend or risk its
own funds or otherwise incur financial liability in the performance of any of its duties hereunder
or in the exercise of any of its rights or powers, if it shall have reasonable grounds to believe
that repayments of such funds or adequate indemnity satisfactory to it against any loss, liability
or expense is not reasonably assured to it.

34

 

     (g) Except as expressly provided in the Basic Documents, the Indenture Trustee shall have no
obligation to administer, service or collect the Trust Student Loans or to maintain, monitor or
otherwise supervise the administration, servicing or collection of the Trust Student Loans.

     (h) In the event that the Indenture Trustee is the Paying Agent or the Note Registrar, the
rights and protections afforded to the Indenture Trustee pursuant to this Indenture shall also be
afforded to the Indenture Trustee in its capacity as Paying Agent or Note Registrar.

     (i) Every provision of this Indenture relating to the conduct or affecting the liability of
or affording protection to the Indenture Trustee shall be subject to the provisions of this Section
and to the provisions of the TIA.

          SECTION 6.2 Rights of Indenture Trustee. (a) The Indenture Trustee may rely on any
document believed by it to be genuine and to have been signed or presented by the proper Person.
The Indenture Trustee need not investigate any fact or matter stated in such document.

     (b) Before the Indenture Trustee acts or refrains from acting, it may require and shall be
entitled to receive an Officers’ Certificate of the Issuer and/or an Opinion of Counsel. The
Indenture Trustee shall not be liable for any action it takes or omits to take in good faith in
reliance on such Officers’ Certificate or Opinion of Counsel.

     (c) The Indenture Trustee may execute any of the trusts or powers hereunder or perform any
duties hereunder either directly or by or through agents or attorneys or a custodian or nominee,
and the Indenture Trustee shall not be responsible for any misconduct or negligence on the part of,
or for the supervision of, any such agent, attorney, custodian or nominee appointed with due care
by it hereunder.

     (d) The Indenture Trustee shall not be liable for any action it takes or omits to take in
good faith which it believes to be authorized or within its rights or powers; provided,
however, that the Indenture Trustee’s conduct does not constitute willful misconduct,
negligence or bad faith.

     (e) The Indenture Trustee may consult with counsel, and the advice or opinion of counsel
with respect to legal matters relating to this Indenture and the Notes shall be full and complete
authorization and protection from liability in respect to any action taken, omitted or suffered by
it hereunder in good faith and in accordance with the advice or opinion of such counsel.

          SECTION 6.3 Individual Rights of Indenture Trustee. The Indenture Trustee in its
individual or any other capacity may become the owner or pledgee of Notes and may otherwise deal
with the Issuer or its Affiliates with the same rights it would have if it were not Indenture
Trustee. Any Paying Agent, Note Registrar, co-registrar or co-paying agent may do the same with
like rights. However, the Indenture Trustee must comply with Sections 6.11 and 6.12.

          SECTION 6.4 Indenture Trustee’s Disclaimer. The Indenture Trustee shall not be
responsible for and makes no representation as to the validity or adequacy of this Indenture or

35

 

the Notes, it shall not be accountable for the Issuer’s use of the proceeds from the Notes,
and it shall not be responsible for any statement of the Issuer in the Indenture or in any document
issued in connection with the sale of the Notes or in the Notes other than the Indenture Trustee’s
certificate of authentication.

          SECTION 6.5 Notice of Defaults. If a Default occurs and is continuing and if it is
either actually known or written notice of the existence thereof has been delivered to a
Responsible Officer of the Indenture Trustee, the Indenture Trustee shall mail notice of the
Default to each Noteholder and any Swap Counterparty within 90 days and to each Rating Agency as
soon as practicable within 30 days after it occurs. Except in the case of a Default in payment of
principal of or interest on any Note (including payments pursuant to the mandatory redemption
provisions of such Note), the Indenture Trustee may withhold the notice if and so long as a
committee of its Responsible Officers in good faith determines that withholding the notice is in
the interests of Noteholders and any Swap Counterparty. Except as provided in the first sentence
of this Section 6.5, in no event shall the Indenture Trustee be deemed to have knowledge of a
Default or an Event of Default.

          SECTION 6.6 Reports by Indenture Trustee to Noteholders. The Indenture Trustee
shall deliver to each Noteholder (and to each Person who was a Noteholder at any time during the
applicable calendar year) such information as may be required to enable such holder to prepare its
Federal and state income tax returns. Within 60 days after each December 31 beginning with the
December 31 following the date of this Indenture, the Indenture Trustee shall mail to each
Noteholder a brief report as of such December 31 that complies with TIA § 313(a) if required by
said section. The Indenture Trustee shall also comply with TIA § 313(b). A copy of each such
report required pursuant to TIA § 313(a) or (b) shall, at the time of such transaction to
Noteholders, be filed by the Indenture Trustee with the Commission and with each securities
exchange, if any, upon which the Notes are listed, provided that the Issuer has previously notified
the Indenture Trustee of such listing.

          SECTION 6.7 Compensation and Indemnity. The Issuer shall cause the Depositor to pay
to the Indenture Trustee reasonable compensation for its services in accordance with a separate
agreement between the Depositor and the Indenture Trustee and shall cause the Depositor to
reimburse the Indenture Trustee for all reasonable out-of-pocket expenses incurred or made by it as
provided in such separate agreement. The Indenture Trustee’s compensation shall not be limited by
any law on compensation of a trustee of an express trust. The Issuer shall cause the Administrator
to indemnify the Indenture Trustee and its directors, officers, employees and agents against any
and all loss, liability or expense (including attorneys’ fees) incurred by it in connection with
the administration of this trust and the performance of its duties hereunder and under the other
Basic Documents. The Indenture Trustee shall notify the Issuer and the Administrator promptly of
any claim for which it may seek indemnity. Failure by the Indenture Trustee to so notify the
Issuer and the Administrator shall not relieve the Issuer or the Administrator of its obligations
hereunder and under the other Basic Documents. The Issuer shall cause the Administrator to defend
the claim and the Administrator shall not be liable for the legal fees and expenses of the
Indenture Trustee after it has assumed such defense; provided, however, that, in
the event that there may be a conflict between the positions of the Indenture Trustee and the
Administrator in conducting the defense of such claim, the Indenture Trustee shall be entitled to
separate counsel acceptable to it in its sole discretion the reasonable fees and

36

 

expenses of which shall be paid by the Administrator on behalf of the Issuer. Neither the
Issuer nor the Administrator need reimburse any expense or indemnify against any loss, liability or
expense incurred by the Indenture Trustee through the Indenture Trustee’s own willful misconduct,
negligence or bad faith.

          The Issuer’s payment obligations to the Indenture Trustee pursuant to this Section shall
survive the discharge of this Indenture. When the Indenture Trustee incurs expenses after the
occurrence of a Default specified in Section 5.1(iv) or (v) with respect to the Issuer, the
expenses are intended to constitute expenses of administration under Title 11 of the United States
Code or any other applicable Federal or state bankruptcy, insolvency or similar law.

          SECTION 6.8 Replacement of Indenture Trustee. No resignation or removal of the
Indenture Trustee and no appointment of a successor Indenture Trustee shall become effective until
the acceptance of appointment by the successor Indenture Trustee pursuant to this Section 6.8. The
Indenture Trustee may resign at any time by so notifying the Issuer. The Noteholders of at least a
majority in Outstanding Amount of the Notes may remove the Indenture Trustee by so notifying the
Indenture Trustee and may appoint a successor Indenture Trustee. The Issuer shall remove the
Indenture Trustee if:

          (i) the Indenture Trustee fails to comply with Section 6.11;

          (ii) an Insolvency Event occurs with respect to the Indenture Trustee;

          (iii) a receiver or other public officer takes charge of the Indenture Trustee or its
property; or

          (iv) the Indenture Trustee otherwise becomes incapable of acting.

          If the Indenture Trustee resigns or is removed or if a vacancy exists in the office of
Indenture Trustee for any reason (the Indenture Trustee in such event being referred to herein as
the retiring Indenture Trustee), the Issuer shall promptly appoint a successor Indenture Trustee.

          A successor Indenture Trustee shall deliver a written acceptance of its appointment to the
retiring Indenture Trustee and to the Issuer. Thereupon the resignation or removal of the retiring
Indenture Trustee shall become effective, and the successor Indenture Trustee shall have all the
rights, powers and duties of the Indenture Trustee under this Indenture. The successor Indenture
Trustee shall mail a notice of its succession to Noteholders. The retiring Indenture Trustee shall
promptly transfer all property held by it as Indenture Trustee to the successor Indenture Trustee.

          If a successor Indenture Trustee does not take office within 60 days after the retiring
Indenture Trustee resigns or is removed, the retiring Indenture Trustee, the Issuer or the
Noteholders of at least a majority in Outstanding Amount of the Notes may petition any court of
competent jurisdiction for the appointment of a successor Indenture Trustee. The successor
Indenture Trustee shall give notice of its appointment as successor Indenture Trustee to the Rating
Agencies.

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          If the Indenture Trustee fails to comply with Section 6.11, any Noteholder may petition any
court of competent jurisdiction for the removal of the Indenture Trustee and the appointment of a
successor Indenture Trustee.

          Notwithstanding the replacement of the Indenture Trustee pursuant to this Section, the
Issuer’s and the Administrator’s obligations under Section 6.7 shall continue for the benefit of
the retiring Indenture Trustee.

          SECTION 6.9 Successor Indenture Trustee by Merger. If the Indenture Trustee
consolidates with, merges or converts into, or transfers all or substantially all of its corporate
trust business or assets to, another corporation or banking association, the resulting, surviving
or transferee corporation without any further act shall be the successor Indenture Trustee,
provided that such corporation or banking association shall be otherwise qualified and eligible
under Section 6.11. The Indenture Trustee shall provide the Rating Agencies prior written notice
of any such transaction.

          In case at the time such successor or successors by merger, conversion or consolidation to the
Indenture Trustee shall succeed to the trusts created by this Indenture any of the Notes shall have
been authenticated but not delivered, any such successor to the Indenture Trustee may adopt the
certificate of authentication of any predecessor trustee, and deliver such Notes so authenticated;
and in case at that time any of the Notes shall not have been authenticated, any successor to the
Indenture Trustee may authenticate such Notes either in the name of any predecessor hereunder or in
the name of the successor to the Indenture Trustee; and in all such cases such certificates shall
have the full force which it is anywhere in the Notes or in this Indenture provided that the
certificate of the Indenture Trustee shall have.

          SECTION 6.10 Appointment of Co-Trustee or Separate Trustee.

     (a) Notwithstanding any other provisions of this Indenture, at any time, for the purpose of
meeting any legal requirement of any jurisdiction in which any part of the Indenture Trust Estate
may at the time be located, the Indenture Trustee shall have the power and may execute and deliver
all instruments to appoint one or more Persons to act as a co-trustee or co-trustees, or separate
trustee or separate trustees, of all or any part of the Indenture Trust Estate, and to vest in such
Person or Persons, in such capacity and for the benefit of the Noteholders, such title to the
Indenture Trust Estate, or any part hereof, and, subject to the other provisions of this Section,
such powers, duties, obligations, rights and trusts as the Indenture Trustee may consider necessary
or desirable. No such appointment shall relieve the Indenture Trustee of its obligations
hereunder. No co-trustee or separate trustee hereunder shall be required to meet the terms of
eligibility as a successor trustee under Section 6.11 and no notice to Noteholders of the
appointment of any co-trustee or separate trustee shall be required under Section 6.8 hereof.

     (b) Every separate trustee and co-trustee shall, to the extent permitted by law, be
appointed and act subject to the following provisions and conditions:

          (i) all rights, powers, duties and obligations conferred or imposed upon the Indenture
Trustee shall be conferred or imposed upon and exercised or performed by the Indenture Trustee and
such separate trustee or co-trustee jointly (it being understood that such

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separate trustee or co-trustee is not authorized to act separately without the Indenture
Trustee joining in such act), except to the extent that under any law of any jurisdiction in which
any particular act or acts are to be performed the Indenture Trustee shall be incompetent or
unqualified to perform such act or acts, in which event such rights, powers, duties and obligations
(including the holding of title to the Indenture Trust Estate or any portion thereof in any such
jurisdiction) shall be exercised and performed singly by such separate trustee or co-trustee, but
solely at the direction of the Indenture Trustee;

          (ii) no trustee hereunder shall be personally liable by reason of any act or omission of any
other trustee hereunder; and

          (iii) the Indenture Trustee may at any time accept the resignation of or remove any separate
trustee or co-trustee.

     (c) Any notice, request or other writing given to the Indenture Trustee shall be deemed to
have been given to each of the then separate trustees and co-trustees, as effectively as if given
to each of them. Every instrument appointing any separate trustee or co-trustee shall refer to
this Indenture and the conditions of this Article VI. Each separate trustee and co-trustee, upon
its acceptance of the trusts conferred, shall be vested with the estates or property specified in
its instrument of appointment, either jointly with the Indenture Trustee or separately, as may be
provided therein, subject to all the provisions of this Indenture, specifically including every
provision of this Indenture relating to the conduct of, affecting the liability of, or affording
protection to, the Indenture Trustee. Every such instrument shall be filed with the Indenture
Trustee.

     (d) Any separate trustee or co-trustee may at any time constitute the Indenture Trustee, its
agent or attorney-in-fact with full power and authority, to the extent not prohibited by law, to do
any lawful act under or in respect of this Indenture on its behalf and in its name. If any
separate trustee or co-trustee shall die, become incapable of acting, resign or be removed, all of
its estates, properties, rights, remedies and trusts shall vest in and be exercised by the
Indenture Trustee, to the extent permitted by law, without the appointment of a new or successor
trustee.

          SECTION 6.11 Eligibility; Disqualification. The Indenture Trustee shall at all
times satisfy the requirements of TIA § 310(a), the requirements of an “eligible lender” under 20
USC § 1085(d) and the requirements of Rule 3a-7(4)(i) of the General Rules and Regulations under
the Investment Company Act of 1940, as amended. The Indenture Trustee shall have a combined
capital and surplus of at least $50,000,000 as set forth in its most recent published annual report
of condition and it shall have a long-term senior unsecured debt rating of not less than investment
grade by each of the Rating Agencies. The Indenture Trustee shall comply with TIA § 310(b),
including the optional provision permitted by the second sentence of TIA § 310(b)(9);
provided, however, that there shall be excluded from the operation of TIA §
310(b)(1) any indenture or indentures under which other securities of the Issuer are outstanding if
the requirements for such exclusion set forth in TIA § 310(b)(1) are met.

          SECTION 6.12 Preferential Collection of Claims Against the Issuer. The Indenture
Trustee shall comply with TIA § 311(a), excluding any creditor relationship listed in

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TIA § 311(b). An Indenture Trustee who has resigned or been removed shall be subject to TIA §
311(a) to the extent indicated.

ARTICLE VII

Noteholders’ Lists and Reports

          SECTION 7.1 Issuer to Furnish Indenture Trustee Names and Addresses of Noteholders.
The Issuer will furnish or cause to be furnished to the Indenture Trustee (a) not more than five
days after the earlier of (i) each Record Date and (ii) three months after the last Record Date, a
list, in such form as the Indenture Trustee may reasonably require, of the names and addresses of
the Noteholders as of such Record Date, and (b) at such other times as the Indenture Trustee may
request in writing, within 30 days after receipt by the Issuer of any such request, a list of
similar form and content as of a date not more than 10 days prior to the time such list is
furnished; provided, however, that so long as the Indenture Trustee is the Note
Registrar, no such list shall be required to be furnished.

          SECTION 7.2 Preservation of Information; Communications to Noteholders. The
Indenture Trustee shall preserve, in as current a form as is reasonably practicable, the names and
addresses of the Noteholders contained in the most recent list furnished to the Indenture Trustee
as provided in Section 7.1 and the names and addresses of Noteholders received by the Indenture
Trustee in its capacity as Note Registrar. The Indenture Trustee may destroy any list furnished to
it as provided in such Section 7.1 upon receipt of a new list so furnished.

     (a) Noteholders may communicate pursuant to TIA § 312(b) with other Noteholders with respect
to their rights under this Indenture or under the Notes. Upon receipt by the Indenture Trustee of
any request by three or more Noteholders or by one or more holders of Notes evidencing not less
than 25% of the Outstanding Amount of the Notes to receive a copy of the current list of
Noteholders (whether or not made pursuant to TIA § 312(b)), the Indenture Trustee shall promptly
notify the Administrator thereof by providing to the Administrator a copy of such request and a
copy of the list of Noteholders produced in response thereto.

     (b) The Issuer, the Indenture Trustee and the Note Registrar shall have the protection of
TIA § 312(c).

     (c) On each Distribution Date the Indenture Trustee shall provide to each Noteholder of
record as of the related Record Date the information provided by the Administrator to the Indenture
Trustee on the related Determination Date pursuant to Section 2.11 of the Administration Agreement.

     (d) The Indenture Trustee shall furnish to the Noteholders promptly upon receipt of a
written request therefor, duplicates or copies of all reports, notices, requests, demands,
certificates, financial statements and any other instruments furnished to the Indenture Trustee
under the Basic Documents. The Indenture Trustee shall furnish to the Noteholders promptly upon
receipt thereof from the Eligible Lender Trustee notice of any amendment of the Administration
Agreement pursuant to Section 8.5 of the Administration Agreement.

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          SECTION 7.3 Reports by Issuer.

     (a) The Issuer shall:

          (i) file with the Indenture Trustee, within 15 days after the Issuer is required to file the
same with the Commission, copies of the annual reports and of the information, documents and other
reports (or copies of such portions of any of the foregoing as the Commission may from time to time
by rules and regulations prescribe) which the Issuer may be required to file with the Commission
pursuant to Section 13 or 15(d) of the Exchange Act;

          (ii) file with the Indenture Trustee and the Commission in accordance with rules and
regulations prescribed from time to time by the Commission such additional information, documents
and reports with respect to compliance by the Issuer with the conditions and covenants of this
Indenture as may be required from time to time by such rules and regulations; and

          (iii) supply to the Indenture Trustee (and the Indenture Trustee shall transmit by mail to
all Noteholders described in TIA § 313(c)) such summaries of any information, documents and reports
required to be filed by the Issuer pursuant to clauses (i) and (ii) of this Section 7.3(a) as may
be required by rules and regulations prescribed from time to time by the Commission.

     (b) Unless the Issuer otherwise determines, the fiscal year of the Issuer shall end on
December 31 of each year.

ARTICLE VIII

Accounts, Disbursements and Releases

          SECTION 8.1 Collection of Money. Except as otherwise expressly provided herein, the
Indenture Trustee may demand payment or delivery of, and shall receive and collect, directly and
without intervention or assistance of any fiscal agent or other intermediary, all money and other
property payable to or receivable by the Indenture Trustee pursuant to this Indenture. The
Indenture Trustee shall apply all such money received by it on behalf of Noteholders, any Swap
Counterparty or the Trust pursuant to the Administration Agreement as provided in this Indenture.
Except as otherwise expressly provided in this Indenture, if any default occurs in the making of
any payment or performance under any agreement or instrument that is part of the Indenture Trust
Estate, the Indenture Trustee may take such action as may be appropriate to enforce such payment or
performance, including the institution and prosecution of appropriate Proceedings. Any such action
shall be without prejudice to any right to claim a Default under this Indenture and any right to
proceed thereafter as provided in Article V.

          SECTION 8.2 Trust Accounts. (a) On or prior to the Closing Date, the Issuer shall
cause the Administrator to establish and maintain, in the name of the Indenture Trustee, for the
benefit of the Noteholders, any Swap Counterparty and the Trust, the Trust Accounts as provided in
Section 2.3 of the Administration Agreement.

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     (b) On or before the Business Day immediately preceding each Distribution Date, all
Available Funds and amounts set forth in paragraph (a)(2) of the definition of Available Funds with
respect to the preceding Collection Period will be deposited in the Collection Account as provided
in Section 2.4 of the Administration Agreement. On or before each Distribution Date, the Indenture
Trustee (or any other Paying Agent) shall make the required deposits and distributions as provided
in Sections 2.7 and 2.8 of the Administration Agreement.

     (c) During the Supplemental Purchase Period, the Indenture Trustee shall withdraw funds as
directed by the Administrator pursuant to Section 2.10(k) of the Administration Agreement for the
purchase of Additional Trust Student Loans.

     (d) During the Consolidation Loan Add-On Period, the Indenture Trustee shall withdraw funds
as directed by the Administrator pursuant to 2.10(l) of the Administration Agreement for the
funding of Add-On Consolidation Loans.

     (e) On the Business Day immediately following the end of the Supplemental Purchase Period,
the Indenture Trustee shall transfer any amounts remaining in the Supplemental Purchase Account at
the end of the Supplemental Purchase Period into the Collection Account, as directed by the
Administrator.

     (f) On the Business Day immediately following the end of the Consolidation Loan Add-On
Period, the Indenture Trustee shall transfer any amounts remaining in the Add-On Consolidation Loan
Account into the Collection Account, as directed by the Administrator.

          SECTION 8.3 General Provisions Regarding Accounts. (a) So long as no Default shall
have occurred and be continuing, all or a portion of the funds in the Trust Accounts shall be
invested in Eligible Investments and reinvested by the Indenture Trustee upon Issuer Order, subject
to the provisions of Section 2.3(b) of the Administration Agreement. All income or other gain from
investments of moneys deposited in the Trust Accounts shall be deposited by the Indenture Trustee
in the Collection Account, and any loss resulting from such investments shall be charged to such
Trust Account. The Issuer will not direct the Indenture Trustee to make any investment of any
funds or to sell any investment held in any of the Trust Accounts unless the security interest
granted and perfected in such account will continue to be perfected in such investment or the
proceeds of such sale, in either case without any further action by any Person, and, in connection
with any direction to the Indenture Trustee to make any such investment or sale, if requested by
the Indenture Trustee, the Issuer shall deliver to the Indenture Trustee an Opinion of Counsel,
acceptable to the Indenture Trustee, to such effect.

     (b) Subject to Section 6.1(c), the Indenture Trustee shall not in any way be held liable for
the selection of Eligible Investments or by reason of any insufficiency in any of the Trust
Accounts resulting from any loss on any Eligible Investment included therein except for losses
attributable to the Indenture Trustee’s failure to make payments on such Eligible Investments
issued by the Indenture Trustee, in its commercial capacity as principal obligor and not as
trustee, in accordance with their terms.

     (c) If (i) the Issuer shall have failed to give investment directions for any funds on
deposit in the Trust Accounts to the Indenture Trustee by 10:00 a.m. Eastern Time (or such

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other time as may be agreed by the Issuer and Indenture Trustee) on any Business Day; or (ii)
a Default shall have occurred and be continuing with respect to the Notes but the Notes shall not
have been declared due and payable pursuant to Section 5.2, or, if such Notes shall have been
declared due and payable following an Event of Default, amounts collected or receivable from the
Indenture Trust Estate are being applied in accordance with Section 5.5 as if there had not been
such a declaration; then the Indenture Trustee shall invest and reinvest funds in the Trust
Accounts in the Eligible Investments described in clause (d) of the definition thereof.

          SECTION 8.4 Release of Indenture Trust Estate. (a) Subject to the payment of its
fees and expenses pursuant to Section 6.7, the Indenture Trustee may, and when required by the
provisions of this Indenture shall, execute instruments to release property from the lien of this
Indenture, or convey the Indenture Trustee’s interest in the same, in a manner and under
circumstances that are not inconsistent with the provisions of this Indenture. No party relying
upon an instrument executed by the Indenture Trustee as provided in this Article VIII shall be
bound to ascertain the Indenture Trustee’s authority, inquire into the satisfaction of any
conditions precedent or see to the application of any moneys.

     (b) The Indenture Trustee shall, at such time as there are no Notes Outstanding and all sums
due the Indenture Trustee pursuant to Section 6.7 have been paid, subject to the interest therein
of any Swap Counterparty, release any remaining portion of the Indenture Trust Estate that secured
the Notes from the lien of this Indenture and release to the Issuer or any other Person entitled
thereto any funds then on deposit in the Trust Accounts. The Indenture Trustee shall release
property from the lien of this Indenture pursuant to this Section 8.4(b) only upon receipt of an
Issuer Request accompanied by an Officers’ Certificate of the Issuer, an Opinion of Counsel and (if
required by the TIA) Independent Certificates in accordance with TIA §§ 314(c) and 314(d)(1)
meeting the applicable requirements of Section 11.1.

     (c) Each Noteholder, by the acceptance of a Note, acknowledges that from time to time the
Indenture Trustee shall release the lien of this Indenture on any Trust Student Loan to be sold (i)
to the Depositor in accordance with Section 6 of the Sale Agreement, (ii) to the Servicer in
accordance with Section 3.5 of the Servicing Agreement, (iii) to VG Funding (or the seller from
which VG Funding originally purchased such Trust Student Loan), to SLM ECFC or to another Affiliate
of SLM Corporation in accordance with Section 3.11F. of the Servicing Agreement, (iv) to another
eligible lender holding one or more Serial Loans with respect to such Trust Student Loan, (v) to VG
Funding in accordance with Section 6 of the VG Funding Purchase Agreement or (vi) to SLM ECFC in
accordance with Section 6 of the SLM ECFC Purchase Agreement, and each Noteholder, by the
acceptance of a Note, consents to any such release.

          SECTION 8.5 Opinion of Counsel. The Indenture Trustee shall receive at least seven
days’ notice when requested by the Issuer to take any action pursuant to Section 8.4(a),
accompanied by copies of any instruments involved, and the Indenture Trustee shall also require,
except in connection with any action contemplated by Section 8.4(c), as a condition to such action,
an Opinion of Counsel, in form and substance satisfactory to the Indenture Trustee, stating the
legal effect of any such action, outlining the steps required to complete the same, and concluding
that all conditions precedent to the taking of such action have been complied with and such action
will not materially and adversely impair the security for the Notes or the rights

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of the Noteholders or any Swap Counterparty in contravention of the provisions of this
Indenture; provided, however, that such Opinion of Counsel shall not be required to
express an opinion as to the fair value of the Indenture Trust Estate. Counsel rendering any such
opinion may rely, without independent investigation, on the accuracy and validity of any
certificate or other instrument delivered to the Indenture Trustee in connection with any such
action.

ARTICLE IX

Supplemental Indentures

     SECTION 9.1 Supplemental Indentures Without Consent of Noteholders.

     (a) Without the consent of any Noteholders but with prior notice to the Rating Agencies, the
Issuer and the Indenture Trustee, when authorized by an Issuer Order, at any time and from time to
time, may enter into one or more indentures supplemental hereto (which shall conform to the
provisions of the Trust Indenture Act as in force at the date of the execution thereof), in form
satisfactory to the Indenture Trustee, for any of the following purposes:

          (i) to correct or amplify the description of any property at any time subject to the lien of
this Indenture, or better to assure, convey and confirm unto the Indenture Trustee any property
subject or required to be subjected to the lien of this Indenture, or to subject to the lien of
this Indenture additional property;

          (ii) to evidence the succession, in compliance with the applicable provisions hereof, of
another person to the Issuer, and the assumption by any such successor of the covenants of the
Issuer herein and in the Notes contained;

          (iii) to add to the covenants of the Issuer, for the benefit of the Noteholders and, any
Swap Counterparty, as applicable, or to surrender any right or power herein conferred upon the
Issuer;

          (iv) to convey, transfer, assign, mortgage or pledge any property to the Indenture Trustee;

          (v) to cure any ambiguity, to correct or supplement any provision herein or in any
supplemental indenture which may be inconsistent with any other provision herein or in any
supplemental indenture or to make any other provisions with respect to matters or questions arising
under this Indenture or in any supplemental indenture; provided that such action shall not
materially adversely affect the interests of the Noteholders or any Swap Counterparty;

          (vi) to evidence and provide for the acceptance of the appointment hereunder by a successor
trustee with respect to the Notes and to add to or change any of the provisions of this Indenture
as shall be necessary to facilitate the administration of the trusts hereunder by more than one
trustee, pursuant to the requirements of Article VI; or

          (vii) to modify, eliminate or add to the provisions of this Indenture to such extent as
shall be necessary to effect the qualification of this Indenture under the TIA or under

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any similar Federal statute hereafter enacted and to add to this Indenture such other
provisions as may be expressly required by the TIA.

          The Indenture Trustee is hereby authorized to join in the execution of any such supplemental
indenture and to make any further appropriate agreements and stipulations that may be therein
contained.

     (b) The Issuer and the Indenture Trustee, when authorized by an Issuer Order, may, also
without the consent of any of the Noteholders but with prior notice to any Swap Counterparty and
the Rating Agencies, enter into an indenture or indentures supplemental hereto for the purpose of
adding any provisions to, or changing in any manner or eliminating any of the provisions of, this
Indenture or of modifying in any manner the rights of the Noteholders or any Swap Counterparty
under this Indenture; provided, however, that such action shall not, as evidenced
by an Opinion of Counsel, adversely affect in any material respect the interests of any Noteholder
or any Swap Counterparty.

          SECTION 9.2 Supplemental Indentures with Consent of Noteholders.

     (a) The Issuer and the Indenture Trustee, when authorized by an Issuer Order, also may, with
prior notice to any Swap Counterparty and the Rating Agencies and with the consent of the
Noteholders of at least a majority of the Outstanding Amount of the Notes, by Act of such
Noteholders delivered to the Issuer and the Indenture Trustee, enter into an indenture or
indentures supplemental hereto for the purpose of adding any provisions to, or changing in any
manner or eliminating any of the provisions of, this Indenture or of modifying in any manner the
rights of the Noteholders under this Indenture; provided, however, that no such
supplemental indenture shall, without the consent of the Noteholder of each Outstanding Note
affected thereby:

          (i) change the date of payment of any installment of principal of or interest on any Note,
or reduce the principal amount thereof, the interest rate thereon or the Redemption Price with
respect thereto, change the provisions of this Indenture relating to the application of collections
on, or the proceeds of the sale of, the Indenture Trust Estate to payment of principal of or
interest on the Notes, or change any place of payment where, or the coin or currency in which, any
Note or the interest thereon is payable (other than pursuant to the terms and conditions of the
Reset Rate Notes or pursuant to the Reset Rate Note Procedures set forth in Appendix A-2 to this
Indenture) or impair the right to institute suit for the enforcement of the provisions of this
Indenture requiring the application of funds available therefor, as provided in Article V, to the
payment of any such amount due on the Notes on or after the respective due dates thereof (or, in
the case of redemption, on or after the Redemption Date);

          (ii) reduce the percentage of the Outstanding Amount of the Notes, the consent of the
Noteholders of which is required for any such supplemental indenture, or the consent of the
Noteholders of which is required for any waiver of compliance with certain provisions of this
Indenture or certain defaults hereunder and their consequences provided for in this Indenture;

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          (iii) modify or alter the provisions of the proviso to the definition of the term
“Outstanding”;

          (iv) reduce the percentage of the Outstanding Amount of the Notes required to direct the
Indenture Trustee to direct the Issuer to sell or liquidate the Indenture Trust Estate pursuant to
Section 5.4;

          (v) modify any provision of this Section except to increase any percentage specified herein
or to provide that certain additional provisions of this Indenture or the other Basic Documents
cannot be modified or waived without the consent of the Noteholder of each Outstanding Note
affected thereby;

          (vi) modify any of the provisions of this Indenture in such manner as to affect the
calculation of the amount of any payment of interest or principal due on any Note on any
Distribution Date (including the calculation of any of the individual components of such
calculation) or to affect the rights of the Noteholders to the benefit of any provisions for the
mandatory redemption of the Notes contained herein; or

          (vii) permit the creation of any lien ranking prior to or on a parity with the lien of this
Indenture with respect to any part of the Indenture Trust Estate or, except as otherwise permitted
or contemplated herein, terminate the lien of this Indenture on any property at any time subject
hereto or deprive any Noteholder of any Note of the security provided by the lien of this
Indenture;

provided, however, that such action shall not, as evidenced by an Opinion of
Counsel, adversely affect in any material respect the interests of any Swap Counterparty.

          It shall not be necessary for any Act of Noteholders under this Section to approve the
particular form of any proposed supplemental indenture, but it shall be sufficient if such Act
shall approve the substance thereof.

          Promptly after the execution by the Issuer and the Indenture Trustee of any supplemental
indenture pursuant to this Section, the Indenture Trustee shall mail to the Noteholders of the
Notes to which such amendment or supplemental indenture relates a notice setting forth in general
terms the substance of such supplemental indenture. Any failure of the Indenture Trustee to mail
such notice, or any defect therein, shall not, however, in any way impair or affect the validity of
any such supplemental indenture.

          SECTION 9.3 Execution of Supplemental Indentures. In executing, or permitting the
additional trusts created by, any supplemental indenture permitted by this Article IX or the
modifications thereby of the trusts created by this Indenture, the Indenture Trustee shall be
entitled to receive, and subject to Sections 6.1 and 6.2, shall be fully protected in relying upon,
an Opinion of Counsel stating that the execution of such supplemental indenture is authorized or
permitted by this Indenture. The Indenture Trustee may, but shall not be obligated to, enter into
any such supplemental indenture that affects the Indenture Trustee’s own rights, duties,
liabilities or immunities under this Indenture or otherwise.

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          SECTION 9.4 Effect of Supplemental Indenture. Upon the execution of any
supplemental indenture pursuant to the provisions hereof, this Indenture shall be and be deemed to
be modified and amended in accordance therewith with respect to the Notes affected thereby, and the
respective rights, limitations of rights, obligations, duties, liabilities and immunities under
this Indenture of the Indenture Trustee, the Issuer and the Noteholders shall thereafter be
determined, exercised and enforced hereunder subject in all respects to such modifications and
amendments, and all the terms and conditions of any such supplemental indenture shall be and be
deemed to be part of the terms and conditions of this Indenture for any and all purposes.

          SECTION 9.5 Conformity with Trust Indenture Act. Every amendment of this Indenture
and every supplemental indenture executed pursuant to this Article IX shall conform to the
requirements of the Trust Indenture Act as then in effect so long as this Indenture shall then be
qualified under the Trust Indenture Act.

          SECTION 9.6 Reference in Notes to Supplemental Indentures. Notes authenticated and
delivered after the execution of any supplemental indenture pursuant to this Article IX may, and if
required by the Indenture Trustee shall, bear a notation in form approved by the Indenture Trustee
as to any matter provided for in such supplemental indenture. If the Issuer or the Indenture
Trustee shall so determine, new Notes so modified as to conform, in the opinion of the Indenture
Trustee and the Issuer, to any such supplemental indenture may be prepared and executed by the
Issuer and authenticated and delivered by the Indenture Trustee in exchange for Outstanding Notes.

ARTICLE X

Redemption of Notes

          SECTION 10.1 Redemption. The Indenture Trustee shall, upon receipt of written
notice from the Servicer pursuant to Section 6.1(b) of the Administration Agreement, give prompt
written notice to the Noteholders of the occurrence of such event. In the event that the assets of
the Trust are sold pursuant to Section 6.1(a) of the Administration Agreement, that portion of the
amounts on deposit in the Trust Accounts to be distributed to the Noteholders shall be paid to the
Noteholders as provided in Sections 2.7 and 2.8 of the Administration Agreement. If amounts are to
be paid to Noteholders pursuant to this Section 10.1, the notice of such event from the Indenture
Trustee to the Noteholders shall include notice of the redemption of Notes by application of such
amounts on the next Distribution Date which is not sooner than 15 days after the date of such
notice (the “Redemption Date”), whereupon all such amounts shall be payable on the Redemption Date.

          SECTION 10.2 Form of Redemption Notice. Notice of redemption under Section 10.1
shall be given by the Indenture Trustee by first-class mail, postage prepaid, or by facsimile,
mailed or transmitted on or prior to the applicable Redemption Date to each Noteholder, as of the
close of business on the Record Date preceding the applicable Redemption Date, at such Noteholder’s
address or facsimile number appearing in the Note Register.

          All notices of redemption shall state:

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          (i) the Redemption Date;

          (ii) the Redemption Price; and

          (iii) the place where such Notes are to be surrendered for payment of the Redemption Price
(which shall be the office or agency of the Issuer to be maintained as provided in Section 3.2).

          Notice of redemption of the Notes shall be given by the Indenture Trustee in the name and at
the expense of the Issuer. Failure to give notice of redemption, or any defect therein, to any
Noteholder of any Note shall not impair or affect the validity of the redemption of any other Note.

          SECTION 10.3 Notes Payable on Redemption Date. The Notes or portions thereof to be
redeemed shall on the Redemption Date become due and payable at the Redemption Price and (unless
the Issuer shall default in the payment of the Redemption Price) no interest shall accrue on the
Redemption Price for any period after the date to which accrued interest is calculated for purposes
of calculating the Redemption Price.

ARTICLE XI

Miscellaneous

          SECTION 11.1 Compliance Certificates and Opinions, etc. (a) Upon any application
or request by the Issuer to the Indenture Trustee to take any action under any provision of this
Indenture, the Issuer shall furnish to the Indenture Trustee and the Rating Agencies (i) an
Officers’ Certificate of the Issuer stating that all conditions precedent, if any, provided for in
this Indenture relating to the proposed action have been complied with, (ii) an Opinion of Counsel
stating that in the opinion of such counsel all such conditions precedent, if any, have been
complied with and (iii) (if required by the TIA) an Independent Certificate from a firm of
certified public accountants meeting the applicable requirements of this Section, except that, in
the case of any such application or request as to which the furnishing of such documents is
specifically required by any provision of this Indenture, no additional certificate or opinion need
be furnished.

          Every certificate or opinion with respect to compliance with a condition or covenant provided
for in this indenture shall include:

          (i) a statement that each signatory of such certificate or opinion has read or has caused to
be read such covenant or condition and the definitions herein relating thereto;

          (ii) a brief statement as to the nature and scope of the examination or investigation upon
which the statements or opinions contained in such certificate or opinion are based;

          (iii) a statement that, in the opinion of each such signatory, such signatory has made such
examination or investigation as is necessary to enable such signatory to express

48

 

an informed opinion as to whether or not such covenant or condition has been complied with;
and

          (iv) a statement as to whether, in the opinion of each such signatory, such condition or
covenant has been complied with.

     (b) (i) Prior to the deposit of any Collateral or other property or securities with the
Indenture Trustee that is to be made the basis for the release of any property or securities
subject to the lien of this Indenture, the Issuer shall, in addition to any obligation imposed in
Section 11.1(a) or elsewhere in this Indenture, furnish to the Indenture Trustee and the Rating
Agencies an Officers’ Certificate of the Issuer certifying or stating the opinion of each person
signing such certificate as to the fair value (within 90 days of such deposit) to the Issuer of the
Collateral or other property or securities to be so deposited.

          (ii) Whenever the Issuer is required to furnish to the Indenture Trustee and the Rating
Agencies an Officers’ Certificate of the Issuer certifying or stating the opinion of any signer
thereof as to the matters described in clause (i) above, the Issuer shall also deliver to the
Indenture Trustee an Independent Certificate as to the same matters, if the fair value to the
Issuer of the securities to be so deposited and of all other such securities made the basis of any
such withdrawal or release since the commencement of the then-current fiscal year of the Issuer, as
set forth in the certificates delivered pursuant to clause (i) above and this clause (ii), is 10%
or more of the Outstanding Amount of the Notes, but such a certificate need not be furnished with
respect to any securities so deposited, if the fair value thereof to the Issuer as set forth in the
related Officers’ Certificate is less than $25,000 or less than one percent of the Outstanding
Amount of the Notes.

          (iii) Other than any property released as contemplated by clause (v) below, whenever any
property or securities are to be released from the lien of this Indenture, the Issuer shall also
furnish to the Indenture Trustee an Officers’ Certificate of the Issuer certifying or stating the
opinion of each person signing such certificate as to the fair value (within 90 days of such
release) of the property or securities proposed to be released and stating that in the opinion of
such person the proposed release will not impair the security under this Indenture in contravention
of the provisions hereof.

          (iv) Whenever the Issuer is required to furnish to the Indenture Trustee an Officers’
Certificate of the Issuer certifying or stating the opinion of any signer thereof as to the matters
described in clause (iii) above, the Issuer shall also furnish to the Indenture Trustee an
Independent Certificate as to the same matters if the fair value of the property or securities and
of all other property, other than property as contemplated by clause (v) below, or securities
released from the lien of this Indenture since the commencement of the then-current calendar year,
as set forth in the certificates required by clause (iii) above and this clause (iv), equals 10% or
more of the Outstanding Amount of the Notes, but such certificate need not be furnished in the case
of any release of property or securities if the fair value thereof as set forth in the related
Officers’ Certificate is less than $25,000 or less than one percent of the then Outstanding Amount
of the Notes.

49

 

          (v) Notwithstanding Section 2.9 or any other provision of this Section, the Issuer may,
without compliance with the requirements of the other provisions of this Section, (A) collect,
liquidate, sell or otherwise dispose of Trust Student Loans as and to the extent permitted or
required by the Basic Documents, (B) make cash payments out of the Trust Accounts as and to the
extent permitted or required by the Basic Documents and (C) convey to the Depositor, the Servicer
or another eligible lender those specified Trust Student Loans as and to the extent permitted or
required by and in accordance with Section 8.4(c) hereof and Section 6 of the Sale Agreement,
Section 3.5 of the Servicing Agreement or Section 3.11E of the Servicing Agreement, respectively,
so long as the Issuer shall deliver to the Indenture Trustee every six months, commencing December
31, 2005, an Officers’ Certificate of the Issuer stating that all the dispositions of Collateral
described in clauses (A), (B) or (C) above that occurred during the immediately preceding six
calendar months were in the ordinary course of the Issuer’s business and that the proceeds thereof
were applied in accordance with the Basic Documents.

          SECTION 11.2 Form of Documents Delivered to Indenture Trustee. In any case where
several matters are required to be certified by, or covered by an opinion of, any specified Person,
it is not necessary that all such matters be certified by, or covered by the opinion of, only one
such Person, or that they be so certified or covered by only one document, but one such Person may
certify or give an opinion with respect to some matters, and one or more other such Persons as to
other matters, and any such Person may certify or give an opinion as to such matters in one or
several documents.

          Any certificate or opinion of an Authorized Officer of the Issuer may be based, insofar as it
relates to legal matters, upon a certificate or opinion of, or representations by, counsel, unless
such officer knows, or in the exercise of reasonable care should know, that the certificate or
opinion or representations with respect to the matters upon which his certificate or opinion is
based are erroneous. Any such certificate of an Authorized Officer or Opinion of Counsel may be
based, insofar as it relates to factual matters, upon a certificate or opinion of, or
representations by, an officer or officers of the Servicer, the Depositor, the Issuer or the
Administrator, stating that the information with respect to such factual matters is in the
possession of the Servicer, the Depositor, the Issuer or the Administrator, unless such counsel
knows, or in the exercise of reasonable care should know, that the certificate or opinion or
representations with respect to such matters are erroneous.

          Where any Person is required to make, give or execute two or more applications, requests,
consents, certificates, statements, opinions or other instruments under this Indenture, they may,
but need not, be consolidated and form one instrument.

          Whenever in this Indenture, in connection with any application or certificate or report to the
Indenture Trustee, it is provided that the Issuer shall deliver any document as a condition of the
granting of such application, or as evidence of the Issuer’s compliance with any term hereof, it is
intended that the truth and accuracy, at the time of the granting of such application or at the
effective date of such certificate or report (as the case may be), of the facts and opinions stated
in such document shall in such case be conditions precedent to the right of the Issuer to have such
application granted or to the sufficiency of such certificate or report. The foregoing shall not,
however, be construed to affect the Indenture Trustee’s right to rely upon the

50

 

truth and accuracy of any statement or opinion contained in any such document as provided in
Article VI.

          SECTION 11.3 Acts of Noteholders. (a) Any request, demand, authorization,
direction, notice, consent, waiver or other action provided by this Indenture to be given or taken
by Noteholders may be embodied in and evidenced by one or more instruments of substantially similar
tenor signed by such Noteholders in person or by agents duly appointed in writing; and except as
herein otherwise expressly provided such action shall become effective when such instrument or
instruments are delivered to the Indenture Trustee, and, where it is hereby expressly required, to
the Issuer. Such instrument or instruments (and the action embodied therein and evidenced thereby)
are herein sometimes referred to as the “Act” of the Noteholders signing such instrument or
instruments. Proof of execution of any such instrument or of a writing appointing any such agent
shall be sufficient for any purpose of this Indenture and (subject to Section 6.1) conclusive in
favor of the Indenture Trustee and the Issuer, if made in the manner provided in this Section.

     (b) The fact and date of the execution by any person of any such instrument or writing may
be proved in any manner that the Indenture Trustee deems sufficient.

     (c) The ownership of Notes shall be proved by the Note Register.

     (d) Any request, demand, authorization, direction, notice, consent, waiver or other action
by any Noteholder shall bind the Noteholder of every Note issued upon registration of transfer
thereof or in exchange therefor or in lieu thereof, in respect of anything done, omitted or
suffered to be done by the Indenture Trustee or the Issuer in reliance thereon, whether or not
notation of such action is made upon such Note.

          SECTION 11.4 Notices, etc., to Indenture Trustee, Issuer and Rating Agencies. Any
request, demand, authorization, direction, notice, consent, waiver or Act of Noteholders or other
documents provided or permitted by this Indenture shall be in writing and if such request, demand,
authorization, direction, notice, consent, waiver or Act of Noteholders is to be made upon, given
or furnished to or filed with:

     (a) The Indenture Trustee by any Noteholder, the Servicer, the Administrator or by the
Issuer shall be sufficient for every purpose hereunder if made, given, furnished or filed in
writing to or with the Indenture Trustee at its Corporate Trust Office with a copy to: Deutsche
Bank Trust Company Americas, 60 Wall Street, 26th Floor, Mailstop NYC 60-2606, New York,
New York 10005, Attention: Trust & Securities Services/Structured Finance Services.

     (b) The Issuer by the Indenture Trustee or by any Noteholder shall be sufficient for every
purpose hereunder if in writing and mailed, first-class, postage prepaid, to the Issuer addressed
to: SLM Student Loan Trust 2005-8, in care of Chase Bank USA, National Association, Christiana
Center/OPS4, 500 Stanton Christiana Road, Newark, Delaware 19713, Attention: Corporate Trust
Department; with copies to JPMorgan Chase Bank, N.A., 450 West 33rd Street 15th Fl., New York, New
York 10001, Attention: Structured Finance Services; and the Administrator, 12061 Bluemont Way,
V3419, Reston, Virginia, 20190, Attention: ABS Trust Administration, or any other address
previously furnished in writing to the Indenture Trustee by

51

 

the Issuer or the Administrator. The Issuer shall promptly transmit any notice received by it
from the Noteholders to the Indenture Trustee.

          Notices required to be given to the Rating Agencies by the Issuer, the Indenture Trustee or
the Eligible Lender Trustee shall be in writing, personally delivered or mailed by certified mail,
return receipt requested, to (i) in the case of Moody’s, at the following address: ABS Monitoring
Department, 99 Church Street, New York, New York 10007, (ii) in the case of S&P, at the following
address: 55 Water Street, New York, New York 10041-0003, Attention: Asset Backed Surveillance
Department, 32nd Floor, and (iii) in the case of Fitch, at the following address: One State Street
Plaza, New York, New York 10004, Attention: Municipal Structured Finance Group; or as to each of
the foregoing, at such other address as shall be designated by written notice to the other parties.

          Notices to any Swap Counterparty shall be sent to the addresses set forth in the related Swap
Agreement, respectively or such other addresses as may be designated by written notice to the
parties to this Indenture.

          SECTION 11.5 Notices to Noteholders; Waiver. Where this Indenture provides for
notice to Noteholders of any event, such notice shall be sufficiently given (unless otherwise
herein expressly provided) if in writing and mailed, first-class, postage prepaid to each
Noteholder affected by such event, at his address as it appears on the Note Register, not later
than the latest date, and not earlier than the earliest date, prescribed for the giving of such
notice. In any case where notice to Noteholders is given by mail, neither the failure to mail such
notice nor any defect in any notice so mailed to any particular Noteholder shall affect the
sufficiency of such notice with respect to other Noteholders, and any notice that is mailed in the
manner herein provided shall conclusively be presumed to have been duly given.

          Where this Indenture provides for notice in any manner, such notice may be waived in writing
by any Person entitled to receive such notice, either before or after the event, and such waiver
shall be the equivalent of such notice. Waivers of notice by Noteholders shall be filed with the
Indenture Trustee but such filing shall not be a condition precedent to the validity of any action
taken in reliance upon such a waiver.

          In case, by reason of the suspension of regular mail service as a result of a strike, work
stoppage or similar activity, it shall be impractical to mail notice of any event to Noteholders
when such notice is required to be given pursuant to any provision of this Indenture, then any
manner of giving such notice as shall be satisfactory to the Indenture Trustee shall be deemed to
be a sufficient giving of such notice.

          Where this Indenture provides for notice to the Rating Agencies, failure to give such notice
shall not affect any other rights or obligations created hereunder, and shall not under any
circumstance constitute a Default.

          SECTION 11.6 Alternate Payment and Notice Provisions. Notwithstanding any provision
of this Indenture or any of the Notes to the contrary, the Issuer may enter into any agreement with
any Noteholder providing for a method of payment, or notice by the Indenture Trustee or any Paying
Agent to such Noteholder, that is different from the methods provided for

52

 

in this Indenture for such payments or notices. The Issuer will furnish to the Indenture
Trustee a copy of each such agreement and the Indenture Trustee will cause payments to be made and
notices to be given in accordance with such agreements.

          SECTION 11.7 Conflict with Trust Indenture Act. If any provision hereof limits,
qualifies or conflicts with another provision hereof that is required to be included in this
Indenture by any of the provisions of the Trust Indenture Act, such required provision shall
control.

          The provisions of TIA §§ 310 through 317 that impose duties on any Person (including the
provisions automatically deemed included herein unless expressly excluded by this Indenture) are a
part of and govern this Indenture, whether or not physically contained herein.

          SECTION 11.8 Effect of Headings and Table of Contents. The Article and Section
headings herein and the Table of Contents are for convenience only and shall not affect the
construction hereof.

          SECTION 11.9 Successors and Assigns. All covenants and agreements in this Indenture
and the Notes by the Issuer shall bind its successor and assigns, whether so expressed or not. All
agreements of the Indenture Trustee in this Indenture shall bind the successors, co-trustees and
agents (excluding any legal representatives or accountants) of the Indenture Trustee.

          SECTION 11.10 Separability. In case any provision in this Indenture or in the Notes
shall be invalid, illegal or unenforceable, the validity, legality, and enforceability of the
remaining provisions shall not in any way be affected or impaired thereby.

          SECTION 11.11 Benefits of Indenture. (a) Except as set forth in paragraphs (b) and
(c) below, nothing in this Indenture or in the Notes, express or implied shall give to any person,
other than the parties hereto and their successors hereunder, the Noteholders, any other party
secured hereunder, and any other Person with an ownership interest in any part of the Indenture
Trust Estate, any benefit or any legal or equitable right, remedy or claim under this Indenture.

     (b) The parties to this Indenture acknowledge and agree that each Swap Counterparty is an
intended third party beneficiary of this Indenture to the extent of its rights hereunder and under
the related Swap Agreement entered into by the Issuer from time to time and shall be entitled to
enforce such rights.

     (c) The parties to this Indenture acknowledge and agree that SLM Corporation, and any
permitted transferee, if applicable, is an intended third party beneficiary of this Indenture to
the extent of its rights with respect to the Call Option as set forth in Section 7 of Appendix A-2
hereto and shall be entitled to enforce such rights.

          SECTION 11.12 Legal Holidays. In any case where the date on which any payment is
due shall not be a Business Day, then (notwithstanding any other provision of the Notes or this
Indenture) payment need not be made on such date, but may be made on the next

53

 

succeeding Business Day with the same force and effect as if made on the date on which
nominally due, and no interest shall accrue for the period from and after any such nominal date.

          SECTION 11.13 GOVERNING LAW. THIS INDENTURE SHALL BE CONSTRUED IN ACCORDANCE WITH
THE LAWS OF THE STATE OF NEW YORK, WITHOUT REFERENCE TO ITS CONFLICT OF LAW PROVISIONS (OTHER THAN
§5-1401 OF THE NEW YORK GENERAL OBLIGATIONS LAW), AND THE OBLIGATIONS, RIGHTS AND REMEDIES OF THE
PARTIES HEREUNDER SHALL BE DETERMINED IN ACCORDANCE WITH SUCH LAWS.

          SECTION 11.14 Counterparts. This Indenture may be executed in any number of
counterparts, each of which so executed shall be deemed to be an original, but all such
counterparts shall together constitute but one and the same instrument.

          SECTION 11.15 Recording of Indenture. If this Indenture is subject to recording in
any appropriate public recording offices, such recording is to be effected by the Issuer and at its
expense accompanied by an Opinion of Counsel (which may be counsel to the Indenture Trustee or any
other counsel reasonably acceptable to the Indenture Trustee) to the effect that such recording is
necessary either for the protection of the Noteholders or any other Person secured hereunder or for
the enforcement of any right or remedy granted to the Indenture Trustee under this Indenture.

          SECTION 11.16 Trust Obligations. No recourse may be taken, directly or indirectly,
with respect to the obligations of the Issuer, the Depositor, the Administrator, the Servicer, the
Eligible Lender Trustee or the Indenture Trustee on the Notes or under this Indenture or any
certificate or other writing delivered in connection herewith or therewith, against (i) the
Indenture Trustee or the Eligible Lender Trustee in its individual capacity, (ii) any owner of a
beneficial interest in the Issuer or (iii) any partner, owner, beneficiary, agent, officer,
director or employee of the Indenture Trustee or the Eligible Lender Trustee in its individual
capacity, any holder or owner of a beneficial interest in the Issuer, the Eligible Lender Trustee
or the Indenture Trustee or of any successor or assign thereof in its individual capacity, except
as any such Person may have expressly agreed (it being understood that the Indenture Trustee and
the Eligible Lender Trustee have no such obligations in their individual capacity) and except that
any such partner, owner or beneficiary shall be fully liable, to the extent provided by applicable
law, for any unpaid consideration for stock, unpaid capital contribution or failure to pay any
installment or call owing to such entity. For all purposes of this Indenture, in the performance
of any duties or obligations of the Issuer hereunder, the Eligible Lender Trustee shall be subject
to, and entitled to the benefits of, the terms and provisions of Articles VI, VII and VIII of the
Trust Agreement.

          SECTION 11.17 No Petition. The Indenture Trustee, by entering into this Indenture,
and each Noteholder, by accepting a Note, hereby covenant and agree that they shall not at any time
institute against the Depositor or the Issuer, or join in any institution against the Depositor or
the Issuer of, any bankruptcy, reorganization, arrangement, insolvency, receivership or liquidation
proceedings, or other proceedings under any United States Federal or state bankruptcy or similar
law in connection with any obligations relating to the Notes, this Indenture or any of the other
Basic Documents. The foregoing shall not limit the rights of the Indenture

54

 

Trustee to file any claim in, or otherwise take any action with respect to, any insolvency
proceeding that was instituted against the Issuer by any Person other than the Indenture Trustee.

          SECTION 11.18 Inspection. The Issuer agrees that, on reasonable prior notice, it
shall permit any representative of the Indenture Trustee, during the Issuer’s normal business
hours, to examine all the books of account, records, reports, and other papers of the Issuer, to
make copies and extracts therefrom, to cause such books to be audited by Independent certified
public accountants, and to discuss the Issuer’s affairs, finances and accounts with the Issuer’s
officers, employees, and Independent certified public accountants, all at such reasonable times and
as often as may be reasonably requested. The Indenture Trustee shall and shall cause its
representatives to hold in confidence all such information obtained from such examination or
inspection except to the extent disclosure may be required by law (and all reasonable applications
for confidential treatment are unavailing) and except to the extent that the Indenture Trustee may
reasonably determine that such disclosure is consistent with its obligations hereunder.

          SECTION 11.19 Subordination. All rights and interest of any Currency Swap
Counterparty in the security interest granted to the Indenture Trustee under this Indenture shall
be fully subordinated to the interests of the Noteholders. No Currency Swap Counterparty shall
have any rights, implied or otherwise, in the Collateral until after the Outstanding Amount of the
Notes has been reduced to zero and the Noteholders have been paid all amounts owed to them under
this Indenture. Notwithstanding the foregoing, the provisions of this Section 11.19 shall not
modify or otherwise affect the contractual priority of payments set forth in Section 5.4(b) hereof
or Section 2.8 of the Administration Agreement. More specifically, no Currency Swap Counterparty
shall have any voting rights or rights to exercise any remedies under this Indenture until after
the Outstanding Amount of the Notes has been reduced to zero and the Noteholders have been paid all
amounts owed to them under this Indenture. After the Outstanding Amount of the Notes has been
reduced to zero and the Noteholders have been paid all amounts owed to them under this Indenture,
each Currency Swap Counterparty shall have all of the rights and obligations, including all voting
rights, of the Noteholders set forth in this Indenture.

55

 

          IN WITNESS WHEREOF, the Issuer, the Eligible Lender Trustee and the Indenture Trustee have
caused this Indenture to be duly executed by their respective officers, thereunto duly authorized
and duly attested, all as of the day and year first above written.

	 	 	 	 	 
	 	 	SLM STUDENT LOAN TRUST 2005-8
	 
	 	 	 	 
	 	 	By: CHASE BANK USA, NATIONAL ASSOCIATION, not in its
individual capacity but solely as Eligible Lender Trustee
	 
	 	 	 	 
	 

	 	By:
	 	     /S/ JOHN J. CASHIN
	 

	 	 	 	Name: John J. Cashin
	 

	 	 	 	Title: Vice President
	 
	 	 	 	 
	 	 	CHASE BANK USA, NATIONAL ASSOCIATION, not in its individual
capacity but solely as Eligible Lender Trustee
	 
	 	 	 	 
	 

	 	By:
	 	     /S/ JOHN J. CASHIN
	 

	 	 	 	Name: John J. Cashin
	 

	 	 	 	Title: Vice President
	 
	 	 	 	 
	 	 	DEUTSCHE BANK TRUST COMPANY AMERICAS,

not in its individual capacity but solely

as Indenture Trustee
	 
	 	 	 	 
	 

	 	By:
	 	      /S/ MICHELE H.Y. VOON
	 

	 	 	 	Name: Michele H.Y. Voon
	 

	 	 	 	Title: Assistant Vice President

56

 

Appendix A-1

DEFINITIONS AND USAGE

Series 2005-8

Usage

     The following rules of construction and usage shall be applicable to any instrument that is
governed by this appendix (this “Appendix”):

     (a) All terms defined in this Appendix shall have the defined meanings when used in any
instrument governed hereby and in any certificate or other document made or delivered pursuant
thereto unless otherwise defined therein.

     (b) As used herein, in any instrument governed hereby and in any certificate or other document
made or delivered pursuant thereto, accounting terms not defined in this Appendix or in any such
instrument, certificate or other document, and accounting terms partly defined in this Appendix or
in any such instrument, certificate or other document, to the extent not defined, shall have the
respective meanings given to them under generally accepted accounting principles as in effect on
the date of such instrument. To the extent that the definitions of accounting terms in this
Appendix or in any such instrument, certificate or other document are inconsistent with the
meanings of such terms under generally accepted accounting principles, the definitions contained in
this Appendix or in any such instrument, certificate or other document shall control.

     (c) The words “hereof,” “herein,” “hereunder” and words of similar import when used in an
instrument refer to such instrument as a whole and not to any particular provision or subdivision
thereof; references in an instrument to “Article,” “Section” or another subdivision or to an
attachment are, unless the context otherwise requires, to an article, section or subdivision of or
an attachment to such instrument; and the term “including” means “including without limitation.”

     (d) The definitions contained in this Appendix are equally applicable to both the singular and
plural forms of such terms and to the masculine as well as to the feminine and neuter genders of
such terms.

     (e) Any agreement, instrument or statute defined or referred to below or any agreement or
instrument that is governed by this Appendix means such agreement or instrument or statute as from
time to time amended, modified or supplemented, including (in the case of agreements or
instruments) by assignment, assumption, waiver or consent and (in the case of statutes) by
succession of comparable successor statutes and includes (in the case of agreements or instruments)
references to all attachments thereto and instruments incorporated therein. References to a Person
are also to its permitted successors and assigns.

     (f) All dollar amounts calculated hereunder shall be rounded to the nearest penny with
one-half of one penny, pence, cent, or other equivalent currency unit.

Appendix A-1-1

 

Definitions

     “30/360” means that interest is calculated on the basis of a 360-day year consisting
of twelve 30-day months.

     “91-day Treasury Bill Rate” means, for any relevant Interest Rate Determination Date,
prior to each Interest Rate Change Date, the rate equal to the weighted average per annum discount
rate (expressed as a bond equivalent yield and applied on a daily basis) for direct obligations of
the United States with a maturity of thirteen weeks (“91-day Treasury Bills”) sold at the
applicable 91-day Treasury Bill auction, as published in H.15(519) or otherwise or as reported by
the U.S. Department of the Treasury. In the event that the results of the auctions of 91-day
Treasury Bills cease to be published or reported as provided above, or that no 91-day Treasury Bill
auction is held in a particular week, then the 91-day Treasury Bill Rate in effect as a result of
the last such publication or report will remain in effect until such time, if any, as the results
of auctions of 91-day Treasury Bills will again be so published or reported or such auction is
held, as the case may be. The 91-day Treasury Bill Rate will be subject to a Lock-In Period of six
Business Days.

     “Accrual Period” means, with respect to a Distribution Date and (i) each class of
Notes bearing a floating rate of interest (including, without limitation, the Floating Rate Notes),
the period from and including the immediately preceding Distribution Date for such class of Notes
to but excluding the then-current Distribution Date, or in the case of the initial such period for
such class of Notes, the period from and including the Closing Date to and including January 24,
2006; provided that if more than one Interest Rate Change Date occurs for the Reset Rate
Notes while bearing a floating rate of interest within any given Accrual Period, the rate of
interest for the entire Accrual Period shall be as specified in the relevant Remarketing Terms
Notice; and (ii) the Reset Rate Notes if they bear a fixed rate of interest and (x) are denominated
in U.S. Dollars, the period from and including the 25th day of the month of the last
applicable Distribution Date, to and including the 24th day of the month of the
then-current applicable Distribution Date for the Reset Rate Notes, or in the case of the initial
such period for such class of Notes, the period from and including the Closing Date to and
including January 24, 2006, or (y) are denominated in a currency other than U.S. Dollars, (A) the
period from and including the 25th day of the month of the last applicable Distribution
Date, to and including the 24th day of the month of the then-current applicable
Distribution Date or (B) as otherwise specified on the Schedule A for the Reset Rate Notes.

     “Accumulation Account” means each account designated as such, established and
maintained pursuant to Section 2.3(j) of the Administration Agreement.

     “Act” means the Securities Act of 1933, as amended.

     “Actual/360” means that interest is calculated on the basis of the actual number of
days elapsed in a year of 360 days.

     “Actual/365 (fixed)” means that interest is calculated on the basis of the actual
number of days elapsed in a year of 365 days, regardless of whether accrual or payment occurs in a
leap year.

Appendix A-1-2

 

     “Actual/Actual (accrual basis)” means that interest is calculated on the basis of the
actual number of days elapsed in a year of 365 days, or 366 days for every day in a leap year.

     “Actual/Actual (ISMA)” means a calculation in accordance with the definition of
“Actual/Actual” adopted by the International Securities Market Association (“ISMA”), which means
that interest is calculated on the following basis:

     (i) where the number of days in the relevant Accrual Period is equal to or shorter than
the Determination Period during which such Accrual Period ends, the number of days in such
Accrual Period divided by the product of (A) the number of days in such Determination Period
and (B) the number of Distribution Dates that would occur in one calendar year; or

     (ii) where the Accrual Period is longer than the Determination Period during which the
Accrual Period ends, the sum of:

     (A) the number of days in such Accrual Period falling in the Determination
Period in which the Accrual Period begins divided by the product of (x) the number
of days in such Determination Period and (y) the number of Distribution Dates that
would occur in one calendar year; and

     (B) the number of days in such Accrual Period falling in the next Determination
Period divided by the product of (x) the number of days in such Determination Period
and (y) the number of Distribution Dates that would occur in one calendar year;

where “Determination Period” means the period from and including one Calculation Date to but
excluding the next Calculation Date and “Calculation Date” means, in each year, each of those days
in the calendar year that are specified herein as being the scheduled Distribution Dates.

     “Actual/Actual (payment basis)” means that interest is calculated on the basis of the
actual number of days elapsed in a year of 365 days if the interest period ends in a non-leap year,
or 366 days if the interest period ends in a leap year, as the case may be.

     “Add-On Consolidation Loan” means an eligible education loan, which, pursuant to the
Higher Education Act and at the election of the borrower, is added to such borrower’s existing
Consolidation Loan.

     “Add-On Consolidation Loan Account” means an account designated as such, established
and maintained pursuant to Section 2.3(r) of the Administration Agreement.

     “Add-On Consolidation Loan Account Initial Deposit” means $20,000,000.

     “Additional Bill of Sale” has the meaning specified in each of the Purchase Agreements
or the Sale Agreement, as applicable.

     “Additional Purchase Agreement” has the meaning specified in each of the Purchase
Agreements, as applicable.

Appendix A-1-3

 

     “Additional Sale Agreement” has the meaning specified in the Sale Agreement.

     “Additional Trust Student Loan” means each Eligible Loan purchased by the Trust during
the Supplemental Purchase Period from the Depositor pursuant to Section 3.2 of the Sale Agreement
and each related Additional Sale Agreement.

     “Adjusted Pool Balance” means, for any Distribution Date, (a) if the Pool Balance as
of the last day of the related Collection Period is greater than 40% of the Initial Pool Balance,
the sum of that Pool Balance, Capitalized Interest, the amount, if any, on deposit in the Add-On
Consolidation Loan Account (excluding amounts in such account that will become Available Funds on
the next Distribution Date) and the Specified Reserve Account Balance for that Distribution Date,
or (b) if the Pool Balance as of the last day of the related Collection Period is less than or
equal to 40% of the Initial Pool Balance, the sum of that Pool Balance and Capitalized Interest.

     “Administration Agreement” means the Administration Agreement, dated as of September
20, 2005, among the Administrator, the Servicer, the Depositor, the Trust and the Eligible Lender
Trustee.

     “Administration Fees” has the meaning specified in Section 2.14 of the Administration
Agreement.

     “Administrator” means Sallie Mae, Inc., in its capacity as administrator of the Trust
in accordance with the Administration Agreement.

     “Administrator Default” has the meaning specified in Section 5.1 of the Administration
Agreement.

     “Administrator’s Certificate” means an Officers’ Certificate of the Administrator
delivered pursuant to Section 3.1(c) of the Administration Agreement.

     “Administrator’s Officers’ Certificate” means any Officers’ Certificate of the
Administrator delivered pursuant to Section 3.1(b) of the Administration Agreement.

     “Affiliate” means, with respect to any specified Person, any other Person controlling
or controlled by or under common control with such specified Person. For the purposes of this
definition, “control” when used with respect to any specified Person means the power to direct the
management and policies of such Person, directly or indirectly, whether through the ownership of
voting securities, by contract or otherwise; and the terms “controlling” and “controlled” have
meanings correlative to the foregoing.

     “All Hold Rate” means, if the Reset Rate Notes are denominated in U.S. Dollars during
the then-current Reset Period and the immediately following Reset Period, the applicable Index plus
or minus the applicable Spread (if the Reset Rate Notes are in floating rate mode) or the
applicable fixed rate, which may be expressed as the fixed rate pricing benchmark plus or minus a
spread (if the Reset Rate Notes are in fixed rate mode), that the Remarketing Agents, in
consultation with the Administrator, determine will be effective, unless the Call Option is
exercised, in the event that 100% of the holders of the Reset Rate Notes choose to hold their

Appendix A-1-4

 

Notes for the upcoming Reset Period. The All Hold Rate shall be a rate that the Remarketing
Agents, in consultation with the Administrator, determine based upon then existing market
conditions.

     “Authenticating Agents” means any agent subsequently appointed with respect to the
Reset Rate Notes and/or JPMorgan Chase Bank, National Association, in respect of the Excess
Distribution Certificate.

     “Authorized Officer” means (i) with respect to the Trust, any officer of the Eligible
Lender Trustee who is authorized to act for the Eligible Lender Trustee in matters relating to the
Trust pursuant to the Basic Documents and who is identified on the list of Authorized Officers
delivered by the Eligible Lender Trustee to the Indenture Trustee on the Closing Date (as such list
may be modified or supplemented from time to time thereafter), (ii) with respect to the
Administrator, any officer of the Administrator or any of its Affiliates who is authorized to act
for the Administrator in matters relating to itself or to the Trust and to be acted upon by the
Administrator pursuant to the Basic Documents and who is identified on the list of Authorized
Officers delivered by the Administrator to the Indenture Trustee on the Closing Date (as such list
may be modified or supplemented from time to time thereafter), (iii) with respect to the Depositor,
any officer of the Depositor or any of its Affiliates who is authorized to act for the Depositor in
matters relating to or to be acted upon by the Depositor pursuant to the Basic Documents and who is
identified on the list of Authorized Officers delivered by the Depositor to the Indenture Trustee
on the Closing Date (as such list may be modified or supplemented from time to time thereafter) and
(iv) with respect to the Servicer, any officer of the Servicer who is authorized to act for the
Servicer in matters relating to or to be acted upon by the Servicer pursuant to the Basic Documents
and who is identified on the list of Authorized Officers delivered by the Servicer to the Indenture
Trustee on the Closing Date (as such list may be modified or supplemented from time to time
thereafter).

     “Available Funds” means, as to a Distribution Date or any related Monthly Servicing
Payment Date, the sum of the following amounts received with respect to the related Collection
Period or, in the case of a Monthly Servicing Payment Date, the applicable portion of these
amounts:

          (a) all collections received by the Servicer on the Trust Student Loans, including any
Guarantee Payments received on the Trust Student Loans, but net of:

     (1) any collections in respect of principal on the Trust Student Loans applied
by the Trust to repurchase guaranteed loans from the Guarantors under the Guarantee
Agreements, and

     (2) amounts required by the Higher Education Act to be paid to the Department
or to be repaid to borrowers, whether or not in the form of a principal reduction of
the applicable Trust Student Loan, on the Trust Student Loans for that Collection
Period, including Consolidation Loan rebate fees, if any;

          (b) any Interest Subsidy Payments and Special Allowance Payments with respect to the Trust
Student Loans during that Collection Period;

Appendix A-1-5

 

          (c) all Liquidation Proceeds from any Trust Student Loans which became Liquidated Student
Loans during that Collection Period in accordance with the Servicer’s customary servicing
procedures, net of expenses incurred by the Servicer related to their liquidation and any amounts
required by law to be remitted to the borrowers on the Liquidated Student Loans, and all Recoveries
on Liquidated Student Loans which were written off in prior Collection Periods or during that
Collection Period;

          (d) the aggregate Purchase Amounts received during that Collection Period for those Trust
Student Loans repurchased by the Depositor or purchased by the Servicer or for Trust Student Loans
sold to another eligible lender pursuant to Section 3.11E of the Servicing Agreement;

          (e) the aggregate Purchase Amounts received during that Collection Period for those Trust
Student Loans repurchased by either of SLM ECFC or VG Funding;

          (f) the aggregate amounts, if any, received from any of SLM ECFC, VG Funding, the Depositor or
the Servicer, as the case may be, as reimbursement of non-guaranteed interest amounts, or lost
Interest Subsidy Payments and Special Allowance Payments, on the Trust Student Loans pursuant to
the Sale Agreement or Section 3.5 of the Servicing Agreement, respectively;

          (g) amounts received by the Trust pursuant to Sections 3.1 and 3.12 of the Servicing Agreement
during that Collection Period as to yield or principal adjustments;

          (h) any interest remitted by the Administrator to the Collection Account prior to such
Distribution Date or Monthly Servicing Payment Date;

          (i) Investment Earnings for that Distribution Date earned on amounts on deposit in each Trust
Account (other than any Accumulation Account, any Euro Account, any Pounds Sterling Account or any
Other Currency Account);

          (j) Investment Earnings actually received by the Trust for that Distribution Date, earned on
amounts on deposit in any Accumulation Account;

          (k) amounts transferred from the Remarketing Fee Account in excess of the sum of the Reset
Period Target Amount for that Distribution Date;

          (l) amounts transferred from any Investment Premium Purchase Account in excess of the amount
required to be on deposit therein pursuant to Section 2.10 (e)(ii) of the Administration Agreement;

          (m) all amounts on deposit in any Investment Reserve Account not transferred to the
Accumulation Account to offset realized losses on Eligible Investments as of that Distribution
Date;

          (n) all amounts on deposit in any Supplemental Interest Account;

Appendix A-1-6

 

          (o) all amounts received by the Trust from any Swap Counterparty for deposit into the
Collection Account, but only to the extent paid in U.S. Dollars, for that Distribution Date;

          (p) on the initial Distribution Date, the Collection Account Initial Deposit and any amounts
transferred into the Collection Account from the Supplemental Purchase Account following the end of
the Supplemental Purchase Period;

          (q) on the April 2006 Distribution Date, any amounts transferred into the Collection Account
from the Add-On Consolidation Loan Account following the end of the Consolidation Loan Add-On
Period;

          (r) amounts transferred from the Reserve Account in excess of the Specified Reserve Account
Balance for that Distribution Date; and

          (s) on the October 2006 Distribution Date, all funds then remaining on deposit in the
Capitalized Interest Account that are transferred into the Collection Account on that
Distribution Date;

provided that if on any Distribution Date there would not be sufficient funds, after application of
Available Funds, as defined above, and application of amounts available from the Capitalized
Interest Account and the Reserve Account to pay any of the items specified in clauses (a) through
(e) of Section 2.8 of the Administration Agreement (but excluding clause (e), and including clauses
(f) and (g) thereof, in the event that a condition exists as described in either clause (i) or (ii)
of the last paragraph of Section 2.8 of the Administration Agreement), as set forth in Sections 2.9
and 2.10(a) of the Administration Agreement, relating to such allocations and distributions, then
Available Funds for that Distribution Date will include, in addition to the Available Funds as
defined above, amounts on deposit in the Collection Account, or amounts held by the Administrator,
or which the Administrator reasonably estimates to be held by the Administrator, for deposit into
the Collection Account on the related Determination Date which would have constituted Available
Funds for the Distribution Date succeeding that Distribution Date, up to the amount necessary to
pay such items, and the Available Funds for the succeeding Distribution Date will be adjusted
accordingly.

     “Basic Documents” means the Trust Agreement, the Indenture, the Servicing Agreement,
the Administration Agreement, the Sale Agreement, the SLM ECFC Purchase Agreement, the VG Funding
Purchase Agreement, the Guarantee Agreements, the Note Depository Agreements, the Remarketing
Agreement, any Swap Agreements (including the Initial Interest Rate Swap Agreement) and other
documents and certificates delivered in connection with any such documents.

     “Benefit Plan” means (i) an employee benefit plan (as defined in Section 3(3) of
ERISA), whether or not subject to the provisions of Title I of ERISA, (ii) a plan described in
Section 4975(e)(1) of the Code, whether or not subject to Section 4975 of the Code or (iii) any
entity whose underlying assets include plan assets by reason of a plan’s investment in the entity.

     “Bill of Sale” has the meaning specified in each of the Purchase Agreements or the
Sale Agreement, as applicable.

Appendix A-1-7

 

     “Book-Entry Note” means a beneficial interest in the Notes, ownership and transfers of
which shall be made through book entries by a Clearing Agency as described in Section 2.10 of the
Indenture.

     “Business Day” means (i) with respect to calculating LIBOR of a specified maturity or
GBP-LIBOR of a specified maturity, any day on which banks in New York, New York and London, England
are open for the transaction of international business and making payments in respect of the Reset
Rate Notes if they are denominated in a currency other than U.S. Dollars; (ii) with respect to
calculating EURIBOR of a specified maturity, any day on which TARGET, and banks in New York, New
York and London, England, are open for the transaction of international business and making
payments in respect of the Reset Rate Notes if they are denominated in a currency other than U.S.
Dollars; and (iii) for all other purposes, any day other than a Saturday, a Sunday or a day on
which banking institutions or trust companies in New York, New York or Wilmington, Delaware are
authorized or obligated by law, regulation or executive order to remain closed.

     “Call Option” means, the option assigned by the Depositor to SLM Corporation which may
be further assigned by SLM Corporation to one of its subsidiaries as a permitted transferee
(provided, that no such subsidiary shall possess the Call Option if it at any time owned an
interest in any of the Trust Student Loans) to purchase 100% of the Reset Rate Notes in their
entirety as of their Reset Date, exercisable at a price equal 100% of the Outstanding Amount of the
Reset Rate Notes, less all amounts distributed to the Reset Rate Noteholders as a payment of
principal in respect of the related Distribution Date, plus any accrued and unpaid interest not
paid by the Trust in respect of the related Distribution Date, and pursuant to the terms and
conditions set forth in the Reset Rate Note Procedures.

     “Call Option Notice” means a written notice from the holder of the Call Option or the
Administrator, as applicable, stating its desire to exercise the Call Option on the related Reset
Date, delivered to each Clearing Agency, the Indenture Trustee, the Remarketing Agents, the Rating
Agencies and, if the Reset Rate Notes are then listed on the Luxembourg Stock Exchange, the
Administrator will forward a copy to the Luxembourg Listing Agent (the contents of which are to be
published in a leading newspaper having general circulation in Luxembourg).

     “Call Rate” means, if a Call Option has been exercised with respect to the Reset Rate
Notes, the rate of interest that is either (1) if the Reset Rate Notes did not have at least one
related Swap Agreement in effect during the previous Reset Period, the floating rate applicable for
the most recent Reset Period during which the Failed Remarketing Rate was not in effect; or (2) if
the Reset Rate Notes had one or more related Swap Agreements in effect during the previous Reset
Period, the weighted average of the floating rates of interest that were due to the related
Interest Rate Swap Counterparties from the Trust during the previous Reset Period. The Call Rate
will continue to apply for each Reset Period while the holder of the Call Option retains the Reset
Rate Notes.

     “Capitalized Interest” means for any Distribution Date through and including the
October 2006 Distribution Date:

Appendix A-1-8

 

	 	(a)	 	if neither of the conditions set forth in Section 2.10(a) of the Administration
Agreement are in effect, the amount on deposit in the Capitalized Interest Account on
the Distribution Date following distributions with respect to clauses (d)(1), (d)(2)
and (e) of Section 2.8 of the Administration Agreement, or
	 
	 	(b)	 	if either of the conditions set forth in Section 2.10(a) of the Administration
Agreement is in effect, the excess, if any, of (x) the amount on deposit in the
Capitalized Interest Account on the Distribution Date following distributions with
respect to clauses (d)(1) and (d)(2) of Section 2.8 of the Administration Agreement
over (y) the Class B Noteholders’ Interest Distribution Amount.

     “Capitalized Interest Account” means the account designated as such, established and
maintained pursuant to Section 2.3(h) of the Administration Agreement.

     “Capitalized Interest Account Balance” means as of any date of determination, the
amount on deposit in the Capitalized Interest Account (exclusive of Investment Earnings).

     “Capitalized Interest Account Initial Deposit” means $66,000,000.

     “Carryover Servicing Fee” has the meaning specified in Attachment A to the Servicing
Agreement.

     “Class A Note” means a Class A-1 Note, a Class A-2 Note, a Class A-3 Note, a Class A-4
Note or a Class A-5 Note.

     “Class A Note Interest Shortfall” means, for any Distribution Date, the excess of (x)
the Class A Noteholders’ Interest Distribution Amount on the preceding Distribution Date, over (y)
the amount of interest actually distributed to the Class A Noteholders or any Currency Swap
Counterparty, as applicable, on the preceding Distribution Date, plus interest on the amount of
that excess, to the extent permitted by law, at the interest rate applicable for each such class of
Notes from the preceding Distribution Date to the current Distribution Date.

     “Class A Note Principal Shortfall” means, as of the close of any Distribution Date,
the excess of (i) the Class A Noteholders’ Principal Distribution Amount on that Distribution Date,
over (ii) the amount of principal actually distributed or allocated to the Class A Noteholders or
deposited into any Accumulation Account on such Distribution Date.

     “Class A Noteholder” means the Person in whose name a Class A Note is registered in
the Note Register.

     “Class A Noteholders’ Distribution Amount” means, for any Distribution Date, the sum
of the Class A Noteholders’ Interest Distribution Amount and the Class A Noteholders’ Principal
Distribution Amount for that Distribution Date.

     “Class A Noteholders’ Interest Distribution Amount” means, for any Distribution Date,
the sum of: (1) the amount of interest accrued at the Class A-1 Rate, the Class A-2 Rate, the Class
A-3 Rate, the Class A-4 Rate or the Class A-5 Rate as applicable, for the related Accrual Period on
the Outstanding Amount of all classes of Class A Notes on the immediately preceding

Appendix A-1-9

 

Distribution Date(s) after giving effect to all principal distributions to Class A Noteholders
on that preceding Distribution Date or, in the case of the first Distribution Date, on the Closing
Date, and (2) the Class A Note Interest Shortfall for that Distribution Date.

     “Class A Noteholders’ Principal Distribution Amount” means, for any Distribution Date,
the Principal Distribution Amount times the Class A Percentage for that Distribution Date, plus any
Class A Note Principal Shortfall as of the close of business on the preceding Distribution Date;
provided that the Class A Noteholders’ Principal Distribution Amount will not exceed the
Outstanding Amount of the Class A Notes (less all amounts, other than Investment Earnings, on
deposit in any related Accumulation Account). In addition, on the Maturity Date for any of the
Class A Notes, the principal required to be distributed to the related Class A Noteholders will
include the amount required to reduce the Outstanding Amount of that class to zero.

     “Class A Notes” means the Floating Rate Class A Notes and the Reset Rate Notes.

     “Class A Percentage” means 100% minus the Class B Percentage.

     “Class A-1 Maturity Date” means the July 2018 Distribution Date.

     “Class A-2 Maturity Date” means the July 2022 Distribution Date.

     “Class A-3 Maturity Date” means the October 2024 Distribution Date.

     “Class A-4 Maturity Date” means the January 2028 Distribution Date.

     “Class A-5 Maturity Date” means the January 2040 Distribution Date.

     “Class A-1 Noteholder” means a Person in whose name a Class A-1 Note is registered in
the Note Register.

     “Class A-2 Noteholder” means a Person in whose name a Class A-2 Note is registered in
the Note Register.

     “Class A-3 Noteholder” means a Person in whose name a Class A-3 Note is registered in
the Note Register.

     “Class A-4 Noteholder” means a Person in whose name a Class A-4 Note is registered in
the Note Register.

     “Class A-5 Noteholder” means a Person in whose name a Class A-5 Note is registered in
the Note Register.

     “Class A-1 Notes” means the $812,000,000 Floating Rate Class A-1 Student Loan-Backed
Notes issued by the Trust pursuant to the Indenture, substantially in the form of Exhibit A-1
thereto.

Appendix A-1-10

 

     “Class A-2 Notes” means the $485,000,000 Floating Rate Class A-2 Student Loan-Backed
Notes issued by the Trust pursuant to the Indenture, substantially in the form of Exhibit A-2
thereto.

     “Class A-3 Notes” means the $300,000,000 Floating Rate Class A-3 Student Loan-Backed
Notes issued by the Trust pursuant to the Indenture, substantially in the form of Exhibit A-3
thereto.

     “Class A-4 Notes” means the $406,791,000 Reset Rate Class A-4 Student Loan-Backed
Notes issued by the Trust pursuant to the Indenture, substantially in the form of Exhibit A-4
thereto.

     “Class A-5 Notes” means the $510,000,000 Floating Rate Class A-5 Student Loan-Backed
Notes issued by the Trust pursuant to the Indenture, substantially in the form of Exhibit A-5
thereto.

     “Class A-1 Rate” means, for any Accrual Period after the initial Accrual Period,
Three-Month LIBOR, as determined on the second Business Day before the beginning of the applicable
Accrual Period, plus 0.00%, based on an Actual/360 accrual method. For the initial Accrual Period,
the Class A-1 Rate shall mean the Initial Accrual Rate plus 0.00%, based on an Actual/360 accrual
method.

     “Class A-2 Rate” means, for any Accrual Period after the initial Accrual Period,
Three-Month LIBOR, as determined on the second Business Day before the beginning of the applicable
Accrual Period, plus 0.09%, based on an Actual/360 accrual method. For the initial Accrual Period,
the Class A-2 Rate shall mean the Initial Accrual Rate plus 0.09%, based on an Actual/360 accrual
method.

     “Class A-3 Rate” means, for any Accrual Period after the initial Accrual Period,
Three-Month LIBOR, as determined on the second Business Day before the beginning of the applicable
Accrual Period, plus 0.11%, based on an Actual/360 accrual method. For the initial Accrual Period,
the Class A-3 Rate shall mean the Initial Accrual Rate plus 0.11%, based on an Actual/360 accrual
method.

     “Class A-4 Rate” means, for any Accrual Period until and including the Initial Reset
Date for the Class A-4 Notes, 4.25% per annum based on a 30/360 accrual method. The Class A-4 Rate
shall be changed on each related Reset Date to the interest rate and Day-Count Basis that will be
set forth in the notice required to be delivered by the Administrator and/or the Remarketing Agents
on each Remarketing Terms Determination Date and Spread Determination Date, as applicable, pursuant
to the procedures set forth in the Reset Rate Note Procedures.

     “Class A-5 Rate” means, for any Accrual Period after the initial Accrual Period,
Three-Month LIBOR, as determined on the second Business Day before the beginning of the applicable
Accrual Period, plus 0.17%, based on an Actual/360 accrual method. For the initial Accrual Period,
the Class A-5 Rate shall mean the Initial Accrual Rate plus 0.17%, based on an Actual/360 accrual
method.

     “Class B Maturity Date” means the January 2040 Distribution Date.

Appendix A-1-11

 

     “Class B Note Interest Shortfall” means, with respect to any Distribution Date, (1)
the excess of (i) the Class B Noteholders’ Interest Distribution Amount on the preceding
Distribution Date, over (ii) the amount of interest actually distributed to the Class B Noteholders
on such preceding Distribution Date, plus (2) interest on the amount of such excess interest due to
the Class B Noteholders, to the extent permitted by law, at the Class B Rate from such preceding
Distribution Date to the current Distribution Date.

     “Class B Note Principal Shortfall” means, as of the close of any Distribution Date,
the excess of (i) the Class B Noteholders’ Principal Distribution Amount on such Distribution Date
over (ii) the amount of principal actually distributed to the Class B Noteholders on such
Distribution Date.

     “Class B Noteholder” means the Person in whose name a Class B Note is registered in
the Note Register.

     “Class B Noteholders’ Distribution Amount” means, for any Distribution Date, the sum
of the Class B Noteholders’ Interest Distribution Amount and the Class B Noteholders’ Principal
Distribution Amount for that Distribution Date.

     “Class B Noteholders’ Interest Distribution Amount” means, for any Distribution Date,
the sum of (1) the amount of interest accrued at the Class B Rate for the related Accrual Period on
the Outstanding Amount of the Class B Notes on the immediately preceding Distribution Date(s) (or,
in the case of the first Distribution Date, the Closing Date), after giving effect to all principal
distributions to Class B Noteholders on that preceding Distribution Date, and (2) the Class B Note
Interest Shortfall for that Distribution Date.

     “Class B Noteholders’ Principal Distribution Amount” means, for any Distribution Date,
the Principal Distribution Amount times the Class B Percentage for that Distribution Date, plus any
Class B Note Principal Shortfall as of the close of business on the preceding Distribution Date;
provided that the Class B Noteholders’ Principal Distribution Amount will not exceed the
Outstanding Amount of the Class B Notes. In addition, on the Class B Maturity Date, the principal
required to be distributed to the Class B Noteholders will include the amount required to reduce
the Outstanding Amount of the Class B Notes to zero.

     “Class B Notes” means the $77,747,000 Floating Rate Class B Student Loan-Backed Notes
issued by the Trust pursuant to the Indenture, substantially in the form of Exhibit A-6 thereto.

     “Class B Percentage” with respect to any Distribution Date, means (1) prior to the
Stepdown Date or with respect to any Distribution Date on which a Trigger Event is in effect, zero;
and (2) on and after the Stepdown Date and provided that no Trigger Event is in effect, a fraction
expressed as a percentage, the numerator of which is the aggregate principal balance of the Class B
Notes immediately prior to that Distribution Date and the denominator of which is the Outstanding
Amount of the Notes, less all amounts (other than Investment Earnings) on deposit in any
Accumulation Account, immediately prior to that Distribution Date.

     “Class B Rate” means, for any Accrual Period after the initial Accrual Period,
Three-Month LIBOR, as determined on the second Business Day before the beginning of the applicable

Appendix A-1-12

 

Accrual Period, plus 0.31%, based on an Actual/360 accrual method. For the initial Accrual
Period, the Class B Rate shall mean the Initial Accrual Rate plus 0.31%, based on an Actual/360
accrual method.

     “Clearing Agency” means DTC, Euroclear or Clearstream, as applicable, or another
organization registered as a “clearing agency” pursuant to applicable law. The initial Clearing
Agency for the Notes shall be DTC and the initial nominee for such Clearing Agency shall be Cede &
Co. The Clearing Agencies for the Reset Rate Notes (i) for any subsequent related Reset Period
when they are denominated in a currency other than U.S. Dollars shall be Euroclear and Clearstream
and the initial joint nominee for such Clearing Agencies shall be Deutsche Bank AG London Branch,
and (ii) for any related Reset Period when they are denominated in U.S. Dollars shall be DTC and
the initial nominee for such Clearing Agency shall be Cede & Co., or Euroclear and Clearstream and
the initial joint nominee for such Clearing Agencies shall be Deutsche Bank AG London Branch, as
applicable.

     “Clearing Agency Participant” means a broker, dealer, bank, other financial
institution or other Person for whom from time to time a Clearing Agency effects book-entry
transfers and pledges of securities deposited with the Clearing Agency.

     “Clearstream” means Clearstream Banking, société anonyme, Luxembourg.

     “Closing Date” means September 20, 2005.

     “CMT Rate” means, for any relevant Interest Rate Determination Date prior to each
Interest Rate Change Date, the rate displayed on the applicable Designated CMT Moneyline Telerate
Page shown below by 3:00 p.m., New York City time, on that Interest Rate Determination Date under
the caption “. . . Treasury Constant Maturities . . . Federal
Reserve Board Release H.15 . . . Mondays Approximately 3:45 p.m.,” under the column for: (i) if the Designated CMT Moneyline
Telerate Page is 7051, the rate on that Interest Rate Determination Date; or (ii) if the Designated
CMT Moneyline Telerate Page is 7052, the average for the week, the month or the quarter, as
specified on the Remarketing Terms Determination Date, ended immediately before the week in which
the Interest Rate Determination Date occurs. The following procedures will apply if the CMT Rate
cannot be determined as described above: (i) if the rate described above is not displayed on the
relevant page by 3:00 p.m., New York City time on that Interest Rate Determination Date, unless the
calculation is made earlier and the rate is available from that source at that time on that
Interest Rate Determination Date, then the CMT Rate will be the Treasury constant maturity rate
having the designated index maturity, as published in H.15(519) or another recognized electronic
source for displaying the rate, (ii) if the applicable rate described above is not published in
H.15(519) or another recognized electronic source for displaying such rate by 3:00 p.m., New York
City time on that Interest Rate Determination Date, unless the calculation is made earlier and the
rate is available from one of those sources at that time, then the CMT Rate will be the Treasury
constant maturity rate, or other United States Treasury rate, for the index maturity and with
reference to the relevant Interest Rate Determination Date, that is published by either the Board
of Governors of the Federal Reserve System or the United States Department of the Treasury and that
the Administrator determines to be comparable to the rate formerly displayed on the Designated CMT
Moneyline Telerate Page shown above and published in H.15(519), (iii) if the rate

Appendix A-1-13

 

described in the prior paragraph cannot be determined, then the Administrator will determine
the CMT Rate to be a yield to maturity based on the average of the secondary market closing offered
rates as of approximately 3:30 p.m., New York City time, on the relevant Interest Rate
Determination Date reported, according to their written records, by leading primary United States
government securities dealers in New York City. The Administrator will select five such securities
dealers and will eliminate the highest and lowest quotations or, in the event of equality, one of
the highest and lowest quotations, for the most recently issued direct noncallable fixed rate
obligations of the United States Treasury (“Treasury Notes”) with an original maturity of
approximately the designated index maturity and a remaining term to maturity of not less than the
designated index maturity minus one year in a representative amount, (iv) if the Administrator
cannot obtain three Treasury Note quotations of the kind described above in (iii), the
Administrator will determine the CMT Rate to be the yield to maturity based on the average of the
secondary market bid rates for Treasury Notes with an original maturity longer than the designated
CMT index maturity which have a remaining term to maturity closest to the designated CMT index
maturity and in a representative amount, as of approximately 3:30 p.m., New York City time, on the
relevant Interest Rate Determination Date of leading primary United States government securities
dealers in New York City. In selecting these offered rates, the Administrator will request
quotations from at least five such securities dealers and will disregard the highest quotation (or
if there is equality, one of the highest) and the lowest quotation (or if there is equality, one of
the lowest). If two Treasury Notes with an original maturity longer than the designated CMT index
maturity have remaining terms to maturity that are equally close to the designated CMT index
maturity, the Administrator will obtain quotations for the Treasury Note with the shorter remaining
term to maturity, (v) if three or four but not five leading primary United States government
securities dealers are quoting as described in the prior paragraph, then the CMT Rate for the
relevant Interest Rate Determination Date will be based on the average of the bid rates obtained
and neither the highest nor the lowest of those quotations will be eliminated, or (vi) if fewer
than three leading primary United States government securities dealers selected by the
Administrator are quoting as described in (v) above, the CMT Rate will remain the CMT Rate then in
effect on that Interest Rate Determination Date.

     “Code” means the Internal Revenue Code of 1986, as amended from time to time, and
Treasury Regulations promulgated thereunder.

     “Collateral” has the meaning specified in the Granting Clause of the Indenture.

     “Collection Account” means the account designated as such, established and maintained
pursuant to Section 2.3(f) of the Administration Agreement.

     “Collection Account Initial Deposit” means $3,964,049 representing amounts excluded
from the Supplemental Purchase Account Initial Deposit due to the application of the proviso
contained in the definition thereof.

     “Collection Period” means, with respect to the first Distribution Date, the period
beginning on the Closing Date and ending on December 31, 2005; and with respect to each subsequent
Distribution Date, the Collection Period means the three calendar months immediately following the
end of the previous Collection Period.

Appendix A-1-14

 

     “Commercial Paper Rate” means, for any relevant Interest Rate Determination Date prior
to each Interest Rate Change Date, the Bond Equivalent Yield shown below of the rate for 90-day
commercial paper, as published in H.15(519) prior to 3:00 p.m., New York City time, on that
Interest Rate Determination Date under the heading “Commercial Paper—Financial”. If the rate
described above is not published in H.15(519) by 3:00 p.m., New York City time, on that Interest
Rate Determination Date, unless the calculation is made earlier and the rate was available from
that source at that time, then the Commercial Paper Rate will be the Bond Equivalent Yield of the
rate on the relevant Interest Rate Determination Date, for commercial paper having the index
maturity specified on the Remarketing Terms Determination Date, as published in H.15 Daily Update
or any other recognized electronic source used for displaying that rate under the heading
“Commercial Paper—Financial”. For purposes of the definition of “Commercial Paper Rate”, the “Bond
Equivalent Yield” equals (NxD)/360(Dx90) times 100, where “D” refers to the per annum rate
determined as set forth above, quoted on a bank discount basis and expressed as a decimal and “N”
refers to 365 or 366, as the case may be. If the rate described above cannot be determined, the
Commercial Paper Rate will remain the commercial paper rate then in effect on that Interest Rate
Determination Date. Unless otherwise specified on the Remarketing Terms Determination Date, the
Commercial Paper Rate will be subject to a Lock-In Period of six Business Days.

     “Commission” means the Securities and Exchange Commission.

     “Consolidation Loans” means Student Loans made in accordance with the Section 428C of
the Higher Education Act.

     “Consolidation Loan Add-On Period” means the period during which the Trust will be
able to purchase Add-On Consolidation Loans with funds on deposit in the Add-On Consolidation Loan
Account, beginning on the Closing Date and ending on March 31, 2006.

     “Corporate Trust Office” means (i) with respect to the Indenture Trustee, the
principal office of the Indenture Trustee at which at any particular time its corporate trust
business shall be administered, which office at the Closing Date is located at 60 Wall Street 26th
Floor, Mailstop NYC60-2606, New York, New York 10005, Attention: Trust & Securities
Services/Structured Finance Services, telephone: (212) 250-8454, facsimile: (212) 797-8606 or at
such other address as the Indenture Trustee may designate from time to time by notice to the
Noteholders and the Depositor, or the principal corporate trust office of any successor Indenture
Trustee (the address of which the successor Indenture Trustee will notify the Noteholders, the
Administrator and the Depositor) and (ii) with respect to the Eligible Lender Trustee, the
principal corporate trust office of the Eligible Lender Trustee located at Christiana Center/OPS4,
500 Stanton Christiana Road, Newark, Delaware 19713, Attention: Corporate Trust Department
(telephone: (302) 552-6279; facsimile: (302) 552-6280); or at such other address as the Eligible
Lender Trustee may designate by notice to the Depositor, or the principal corporate trust office of
any successor Eligible Lender Trustee (the address of which the successor Eligible Lender Trustee
will notify the Administrator and the Depositor).

     “Currency Swap Agreement” means with respect to the Reset Rate Notes when they are in
Foreign Exchange Mode, each Swap Agreement between the Trust and the related Currency Swap
Counterparty which (i) converts the secondary market trade proceeds into U.S. Dollars

Appendix A-1-15

 

received on the effective date of such Swap Agreement; (ii) converts all principal payments in
U.S. Dollars by the Trust to the Reset Rate Noteholders into the applicable currency; (iii)
converts the interest rate on the Reset Rate Notes from a LIBOR-based rate to a fixed or floating
rate payable in the applicable currency; (iv) converts the U.S. Dollar equivalent of all secondary
market trade proceeds received on the related Reset Date resulting in the successful remarketing of
the Reset Rate Notes or the exercise of a Call Option into the applicable currency for the payment
of principal to the tendering Reset Rate Noteholders; and (v) pays to the Paying Agent, on behalf
of the Trust, for the benefit of the tendering Reset Rate Noteholders, the required amount of
additional interest at the interest rate applicable to the tendered Reset Rate Notes resulting from
any required delay in Reset Date payments through Euroclear and Clearstream.

     “Currency Swap Counterparty” means each Eligible Swap Counterparty that is a party, in
its capacity as swap counterparty, to the related Currency Swap Agreement.

     “Custodian” has the meaning specified in Section 2.1 of the Indenture.

     “Cutoff Date” means (a) the Initial Cutoff Date with respect to the Initial Trust
Student Loans and (b) the applicable Subsequent Cutoff Date with respect to the related Additional
Trust Student Loan or Substituted Trust Student Loan.

     “Day Count Basis” means 30/360, Actual/360, Actual/365 (Fixed), Actual/Actual (accrual
basis), Actual/Actual (ISMA) or Actual/Actual (payment basis), as applicable, or any other
day-count basis set forth in the Remarketing Terms Notice.

     “Default” means any occurrence that is, or with notice or the lapse of time or both
would become, an Event of Default.

     “Definitive Notes” has the meaning specified in Section 2.10 of the Indenture.

     “Delaware Statutory Trust Act” means Chapter 38 of Title 12, Part V of the Delaware
Code, entitled “Treatment of Delaware Statutory Trusts.”

     “Delivery” when used with respect to Trust Account Property means:

          (a) with respect to bankers’ acceptances, commercial paper, negotiable certificates of deposit
and other obligations that constitute “instruments” within the meaning of Section 9-102(a)(47) of
the UCC and are susceptible of physical delivery, transfer thereof to the Indenture Trustee or its
nominee or custodian by physical delivery to the Indenture Trustee or its nominee or custodian
endorsed to, or registered in the name of, the Indenture Trustee or its nominee or custodian or
endorsed in blank, and, with respect to a certificated security (as defined in Section 8-102(a)(3)
of the UCC) transfer thereof (i) by delivery of such certificated security endorsed to, or
registered in the name of, the Indenture Trustee or its nominee or custodian or endorsed in blank
to a securities intermediary (as defined in Section 8-102(a)(14) of the UCC) and the making by
such securities intermediary of entries on its books and records identifying such certificated
securities as belonging to the Indenture Trustee or its nominee or custodian and the sending by
such securities intermediary of a confirmation of the purchase of such certificated security by the
Indenture Trustee or its nominee or custodian, or (ii) by delivery thereof to a “clearing
corporation” (as defined in Section 8-102(a)(5) of the UCC) and the making by such

Appendix A-1-16

 

clearing corporation of appropriate entries on its books reducing the appropriate securities
account of the transferor and increasing the appropriate securities account of a securities
intermediary by the amount of such certificated security, the identification by the clearing
corporation of the certificated securities for the sole and exclusive account of the securities
intermediary, the maintenance of such certificated securities by such clearing corporation or the
nominee of either subject to the clearing corporation’s exclusive control, the sending of a
confirmation by the securities intermediary of the purchase by the Indenture Trustee or its nominee
or custodian of such securities and the making by such securities intermediary of entries on its
books and records identifying such certificated securities as belonging to the Indenture Trustee or
its nominee or custodian (all of the foregoing, but not including Trust Student Loans, “Physical
Property”); and such additional or alternative procedures as may hereafter become appropriate to
effect the complete transfer of ownership of any such Trust Account Property to the Indenture
Trustee or its nominee or custodian, consistent with changes in applicable law or regulations or
the interpretation thereof;

          (b) with respect to any security issued by the U.S. Treasury, the Government National Mortgage
Association, the Federal Home Loan Mortgage Corporation or the Federal National Mortgage
Association that is a book-entry security held at a Federal Reserve Bank pursuant to Federal
book-entry regulations, the following procedures, all in accordance with applicable law, including
applicable Federal regulations and Articles 8 and 9 of the UCC: the crediting of such book-entry
security to an appropriate book-entry account of the Indenture Trustee or its nominee or the
custodian or securities intermediary at a Federal Reserve Bank, causing the custodian to
continuously indicate by book-entry such book-entry security as credited to the relevant book-entry
account, the continuous crediting of such book-entry security to a securities account of the
custodian at such Federal Reserve Bank and the continuous identification of such book-entry
security by the custodian as credited to the appropriate book-entry account; and

          (c) with respect to any item of Trust Account Property that is an uncertificated security
under Article 8 of the UCC and that is not governed by clause (b) above, registration on the books
and records of the issuer thereof in the name of the securities intermediary, the sending of a
confirmation by the securities intermediary of the purchase by the Indenture Trustee or its nominee
or custodian of such uncertificated security, the making by such securities intermediary of entries
on its books and records identifying such uncertificated certificates as belonging to the Indenture
Trustee or its nominee or custodian.

     “Department” means the United States Department of Education, an agency of the Federal
government.

     “Depositor” means SLM Funding LLC, a Delaware limited liability company, and its
successors and assigns, including, for such purpose, a permitted transferee of all of SLM Funding
LLC’s right, title and interest in the Excess Distribution Certificate.

     “Depository Agreements” means the Note Depository Agreements.

     “Determination Date” means, with respect to the Collection Period preceding any
Distribution Date, the first Business Day preceding such Distribution Date.

Appendix A-1-17

 

     “Distribution Date” means for any class of Notes, the 25th day of each of January,
April, July and October, or, if such day is not a Business Day, the immediately following Business
Day, commencing January 25, 2006.

     “DTC” means The Depository Trust Company, or any successor thereto.

     “Eligible Deposit Account” means (i) with respect to the Trust Accounts other than any
Euro Account, any Pounds Sterling Account or any Other Currency Account, either (a) a segregated
account with an Eligible Institution or (b) a segregated trust account with the corporate trust
department of a depository institution organized under the laws of the United States of America or
any one of the States or the District of Columbia (or any domestic branch of a foreign bank),
having corporate trust powers and acting as trustee for funds deposited in such account, so long as
any of the securities of such depository institution have a credit rating from Moody’s, S&P, and,
if such institution is rated by Fitch, Fitch, in one of their generic rating categories which
signifies investment grade and (ii) with respect to any Euro Account, any Pounds Sterling Account
or any Other Currency Account, a segregated account with the London Paying Agent.

     “Eligible Institution” means a depository institution organized under the laws of the
United States of America or any one of the States or the District of Columbia (or any domestic
branch of a foreign bank) (i) which has (A) either a long-term senior unsecured debt rating of
“AAA” or a short-term senior unsecured debt or certificate of deposit rating of “A-1+” or better by
S&P and (B)(1) a long-term senior unsecured debt rating of “A1” or better and (2) a short-term
senior unsecured debt rating of “P-1” or better by Moody’s, and (C) if such institution is rated by
Fitch, a long-term senior unsecured debt rating of “AA” or a short-term senior unsecured debt
rating of “F1+,” or any other long-term, short-term or certificate of deposit rating with respect
to which the Rating Agency Condition has been satisfied and (ii) whose deposits are insured by the
FDIC. If so qualified, the Eligible Lender Trustee or the Indenture Trustee may be considered an
Eligible Institution.

     “Eligible Investments” means book-entry securities, negotiable instruments or
securities represented by instruments in bearer or registered form which evidence:

          (a) direct obligations of, and obligations fully guaranteed as to timely payment by, the
United States of America, the Government National Mortgage Association, the Federal Home Loan
Mortgage Corporation, the Federal National Mortgage Association, or any agency or instrumentality
of the United States of America the obligations of which are backed by the full faith and credit of
the United States of America; provided that obligations of, or guaranteed by, the
Government National Mortgage Association (GNMA), the Federal Home Loan Mortgage Corporation
(Freddie Mac) or the Federal National Mortgage Association (Fannie Mae) shall be Eligible
Investments only if, at the time of investment, they meet the criteria of each of the Rating
Agencies for collateral for securities having ratings equivalent to the respective ratings of the
Notes in effect at the Closing Date;

          (b) demand deposits, time deposits or certificates of deposit of any depository institution or
trust company incorporated under the laws of the United States of America or any State (or any
domestic branch of a foreign bank) and subject to supervision and examination by

Appendix A-1-18

 

Federal or state banking or depository institution authorities (including depository receipts
issued by any such institution or trust company as custodian with respect to any obligation
referred to in clause (a) above or portion of such obligation for the benefit of the holders of
such depository receipts); provided that at the time of the investment or contractual
commitment to invest therein (which shall be deemed to be made again each time funds are reinvested
following each Distribution Date), the commercial paper or other short-term senior unsecured debt
obligations (other than such obligations the rating of which is based on the credit of a Person
other than such depository institution or trust company) thereof shall have a credit rating from
each of the Rating Agencies in the highest investment category granted thereby;

          (c) commercial paper having, at the time of the investment, a rating from each of the Rating
Agencies in the highest investment category granted thereby;

          (d) investments in money market funds having a rating from each of the Rating Agencies in the
highest investment category granted thereby (including funds for which the Indenture Trustee, the
Administrator or the Eligible Lender Trustee or any of their respective Affiliates is investment
manager or advisor);

          (e) bankers’ acceptances issued by any depository institution or trust company referred to in
clause (b) above;

          (f) repurchase obligations with respect to any security that is a direct obligation of, or
fully guaranteed by, the United States of America or any agency or instrumentality thereof the
obligations of which are backed by the full faith and credit of the United States of America, in
either case entered into with a depository institution or trust company (acting as principal)
described in clause (b) above;

          (g) asset-backed securities, including asset-backed securities issued by Affiliates, or
entities formed by Affiliates, of SLM Corporation, but excluding mortgage-backed securities, that
at the time of investment have a rating in the highest investment category granted by each of the
Rating Agencies, but not at a purchase price in excess of par;

          (h) Eligible Repurchase Obligations; and

          (i) any other investment which would not result in the downgrading or withdrawal of any rating
of the Notes by any of the Rating Agencies as affirmed in writing delivered to the Indenture
Trustee.

For purposes of the definition of “Eligible Investments” the phrase “highest investment category”
means (i) in the case of Fitch, “AAA” for long-term investments (or the equivalent) and “F-1+” for
short-term investments (or the equivalent), (ii) in the case of Moody’s, “Aaa” for long-term
investments (or the equivalent) and “P-1” for short-term investments (or the equivalent), and (iii)
in the case of S&P, “AAA” for long-term investments (or the equivalent) and “A-1+” for short-term
investments (or the equivalent). A proposed investment not rated by Fitch but rated in the highest
investment category by Moody’s and S&P shall be considered to be rated by each of the Rating
Agencies in the highest investment category granted thereby.

Appendix A-1-19

 

     “Eligible Lender Trustee” means Chase Bank USA, National Association, a national
banking association, not in its individual capacity but solely as Eligible Lender Trustee under the
Trust Agreement. “Eligible Lender Trustee” shall also mean each successor Eligible Lender Trustee
as of the qualification of such successor as Eligible Lender Trustee under the Trust Agreement.

     “Eligible Loans” has the meaning specified in any of the Purchase Agreements or the
Sale Agreement, as applicable.

     “Eligible Repo Counterparty” means an institution that is an eligible lender (under
the Federal Family Education Loan Program) or that holds Student Loans through an eligible lender
trustee and whose short-term debt ratings are not less than “P-1” by Moody’s, “A-1” by S&P and
“F1” by Fitch, if rated by Fitch.

     “Eligible Repurchase Obligations” means repurchase obligations with respect to Student
Loans serviced by the Servicer or an Affiliate thereof, entered into with an Eligible Repo
Counterparty, provided that the applicable repurchase date shall occur no later than the Business
Day prior to the next Distribution Date.

     “Eligible Swap Counterparty” means an entity, which may be an affiliate of a
Remarketing Agent, engaged in the business of entering into derivative instrument contracts that
satisfies the Rating Agency Condition.

     “ERISA” means the Employee Retirement Income Security Act of 1974, as amended.

     “EURIBOR” means, with respect to any Accrual Period, the Euro-zone interbank offered
rate for deposits in Euros having the specified maturity commencing on the first day of the Accrual
Period, which appears on Telerate Page 248 as of 11:00 a.m. Brussels time, on the related EURIBOR
Determination Date. If an applicable rate does not appear on Telerate Page 248, the rate for that
day will be determined on the basis of the rates at which deposits in Euros having the specified
maturity and in a principal amount of not less than €1,000,000, are offered at approximately
11:00 a.m., Brussels time, on that EURIBOR Determination Date, to prime banks in the Euro-zone
interbank market by the Reference Banks. The Administrator will request the principal Euro-zone
office of each Reference Bank to provide a quotation of its rate. If the Reference Banks provide
at least two quotations, the rate for that day will be the arithmetic mean of the quotations. If
the Reference Banks provide fewer than two quotations, the rate for that day will be the arithmetic
mean of the rates quoted by major banks in the Euro-zone, selected by the Administrator, at
approximately 11:00 a.m. Brussels time, on that EURIBOR Determination Date, for loans in Euros to
leading European banks having the specified maturity and in a principal amount of not less than
€1,000,000. If the banks selected as described above are not providing quotations, EURIBOR in
effect for the applicable Accrual Period will be EURIBOR for the specified maturity in effect for
the previous Accrual Period.

     “EURIBOR Determination Date” means, for each Accrual Period, the day that is two
EURIBOR Settlement Days before the beginning of that Accrual Period.

     “EURIBOR Settlement Day” means any day on which TARGET is open which is also a day on
which banks in New York, New York and London, England are open for business.

Appendix A-1-20

 

     “Euro Account” means any account designated as such, established and maintained
pursuant to Section 2.3(o) of the Administration Agreement.

     “Euroclear” means the Euroclear System, or any successor thereto.

     “European Clearing Systems” means Euroclear or Clearstream.

     “Event of Default” has the meaning specified in Section 5.1 of the Indenture.

     “Excess Distribution Certificate” means the certificate, substantially in the form of
Exhibit A to the Trust Agreement, evidencing the right to receive payments thereon as set forth in
Sections 2.8(p) and 2.9(f) of the Administration Agreement.

     “Excess Distribution Certificate Paying Agent” means any paying agent or co-paying
agent appointed pursuant to Section 3.3(g) of the Trust Agreement, which paying agent shall
initially be the Indenture Trustee.

     “Excess Distribution Certificate Register” and “Excess Distribution Certificate
Registrar” mean the register mentioned and the registrar appointed pursuant to Section 3.3(c)
of the Trust Agreement.

     “Excess Distribution Certificateholder” means the person in whose name an Excess
Distribution Certificate is registered in the Excess Distribution Certificate Register.

     “Exchange Act” means the Securities Exchange Act of 1934, as amended.

     “Executive Officer” means, with respect to any corporation, the Chief Executive
Officer, Chief Operating Officer, Chief Financial Officer, President, any Executive Vice President,
any Senior Vice President, any Vice President, the Secretary or the Treasurer of such corporation;
and with respect to any partnership, any general partner thereof.

     “Expenses” means any and all liabilities, obligations, losses, damages, taxes, claims,
actions and suits, and any and all reasonable costs, expenses and disbursements (including
reasonable legal fees and expenses) of any kind and nature whatsoever which may at any time be
imposed on, incurred by, or asserted against the Eligible Lender Trustee or any of its officers,
directors or agents in any way relating to or arising out of the Trust Agreement, the other Basic
Documents, the Trust Estate, the administration of the Trust Estate or the action or inaction of
the Eligible Lender Trustee under the Trust Agreement or the other Basic Documents.

     “Extension Rate” means, for each Distribution Date following a Failed Remarketing if
the Reset Rate Notes are then in Foreign Exchange Mode, the rate of interest payable to each
related Currency Swap Counterparty, not to exceed Three-Month LIBOR plus 0.75%, unless the
Remarketing Agents, in consultation with the Administrator, determine that market conditions or
some other benefit to the Trust requires a higher rate; provided that in such case the
Rating Agency Condition is satisfied.

     “Failed Remarketing” means, on any Reset Date for the Reset Rate Notes, the situation
where:

Appendix A-1-21

 

          (a) the Remarketing Agents, in consultation with the Administrator, cannot establish one or
more of the terms required to be set on the Remarketing Terms Determination Date;

          (b) the Remarketing Agents are unable to establish the Spread or fixed rate on the Spread
Determination Date;

          (c) either the Remarketing Agents are unable to remarket all or some of the tendered Reset
Rate Notes at the Spread or fixed rate established on the Spread Determination Date, or any
committed purchasers default on their purchase obligations and in their sole discretion, the
Remarketing Agents elect not to purchase the Reset Rate Notes themselves;

          (d) the Remarketing Agents, in consultation with the Administrator, are unable to obtain one
or more Swap Agreements meeting the required criteria, if applicable;

          (e) any applicable Rating Agency Condition has not been satisfied; or

          (f) any of the conditions specified in Section 8 of the Remarketing Agreement are not
satisfied.

     “Failed Remarketing Rate” means, for any Reset Period when the Reset Rate Notes are
then denominated in U.S. Dollars, Three-Month LIBOR plus 0.75%; and for any Reset Period when the
Reset Rate Notes are in Foreign Exchange Mode, as will be determined on the related Spread
Determination Date pursuant to the terms of the related Currency Swap Agreement.

     “FDIC” means the Federal Deposit Insurance Corporation.

     “Federal Funds Rate” means the rate set forth for such day opposite the caption
“Federal Funds (effective)” in the weekly statistical release designated H.15(519), or any
successor publication, published by the Board of Governors of the Federal Reserve System. If such
rate is not published in the relevant H.15(519) for any day, the rate for such day shall be the
arithmetic mean of the rates for the last transaction in overnight Federal Funds arranged prior to
9:00 a.m. New York City time on that day by each of four leading brokers in such transactions
located in New York City selected by the Administrator. The Federal Funds rate for each Saturday
and Sunday and for any other that is not a Business Day shall be the Federal Funds Rate for the
preceding Business Day as determined above.

     “Fitch” means Fitch Inc., also known as Fitch Ratings, or any successor Rating Agency.

     “Five-Month LIBOR” see Three-Month LIBOR.

     “Floating Rate Class A Notes” means the Class A-1 Notes, the Class A-2 Notes, the
Class A-3 Notes and the Class A-5 Notes.

     “Floating Rate Noteholder” means the Person in whose name a Floating Rate Note is
registered in the Note Register.

Appendix A-1-22

 

     “Floating Rate Notes” means the Class A-1 Notes, the Class A-2 Notes, the Class A-3
Notes, the Class A-5 Notes and the Class B Notes.

     “Foreign Exchange Mode” means that the Reset Rate Notes are then denominated in a
currency other than U.S. Dollars during the related Reset Period.

     “Four-Month LIBOR” see Three-Month LIBOR.

     “Funding Interim Trust Agreement” means the Interim Trust Agreement, dated as of
September 1, 2005, between the Depositor and the Interim Eligible Lender Trustee.

     “GBP-LIBOR” means, with respect to any Accrual Period, the London interbank offered
rate for deposits in Pounds Sterling having a maturity of three months, commencing on the first day
of the Accrual Period, which appears on Telerate Page 3750 as of 11:00 a.m. London time, on the
related GBP-LIBOR Determination Date. If an applicable rate does not appear on Telerate Page 3750,
the rate for that day will be determined on the basis of the rates at which deposits in Pounds
Sterling, having the specified maturity and in a principal amount of not less than £1,000,000, are
offered at approximately 11:00 a.m., London time, on that GBP-LIBOR Determination Date, to prime
banks in the London interbank market by the Reference Banks. The Administrator will request the
principal London office of each Reference Bank to provide a quotation of its rate. If the
Reference Banks provide at least two quotations, the rate for that day will be the arithmetic mean
of the quotations. If the Reference Banks provide fewer than two quotations, the rate for that day
will be the arithmetic mean of the rates quoted by prime banks in London, selected by the
Administrator, at approximately 11:00 a.m. London time, on that GBP-LIBOR Determination Date, for
loans in Pounds Sterling to leading European banks having the specified maturity and in a principal
amount of not less than £1,000,000. If the banks selected as described above are not providing
quotations, GBP-LIBOR in effect for the applicable Accrual Period will be GBP-LIBOR for the
specified maturity in effect for the previous Accrual Period. For any GBP-LIBOR-based notes,
interest due for any Accrual Period always will be determined based on the actual number of days
elapsed in the Accrual Period over a 365-day year.

     “GBP-LIBOR Determination Date” means, for each Accrual Period, the day that is two
GBP-LIBOR Settlement Days before the beginning of that Accrual Period.

     “GBP-LIBOR Settlement Day” means any day on which banks in both London and New York
City are open for business.

     “GLB Regulations” means the Joint Banking Agencies’ Privacy of Consumer Financial
Information, Final Rule (12 CFR Parts 40, 216, 332 and 573) or the Federal Trade Commission’s
Privacy of Consumer Financial Information, Final Rule (16 CFR Part 313), as applicable,
implementing Title V of the Gramm-Leach-Bliley Act, Public Law 106-102, as amended.

     “Grant” means mortgage, pledge, bargain, sell, warrant, alienate, remise, release,
convey, assign, transfer, create and grant a lien upon and a security interest in and right of
set-off against, deposit, set over and confirm pursuant to the Indenture. A Grant of the
Collateral or of any other agreement or instrument shall include all rights, powers and options
(but none of the obligations) of the Granting party thereunder, including the immediate and
continuing right to claim for, collect, receive and give receipt for principal and interest
payments in respect of the Collateral

Appendix A-1-23

 

and all other moneys payable thereunder, to give and receive notices and other communications,
to make waivers or other agreements, to exercise all rights and options, to bring Proceedings in
the name of the Granting party or otherwise and generally to do and receive anything that the
Granting party is or may be entitled to do or receive thereunder or with respect thereto.

     “Guarantee Agreement” means any agreement between any Guarantor and the Eligible
Lender Trustee providing for the payment by the Guarantor of amounts authorized to be paid pursuant
to the Higher Education Act to holders of qualifying Student Loans guaranteed in accordance with
the Higher Education Act by such Guarantor.

     “Guarantee Payment” means any payment made by a Guarantor pursuant to a Guarantee
Agreement in respect of a Trust Student Loan.

     “Guarantor” means any entity listed on Attachment B (as amended from time to time) to
the Sale Agreement, the Purchase Agreements, any Additional Purchase Agreement or any Additional
Sale Agreement, as applicable.

     “H.15(519)” means the weekly statistical release designated as such, or any successor
publication, published by the Board of Governors of the United States Federal Reserve System.

     “H.15 Daily Update” means the daily update for H.15(519), available through the world
wide web site of the Board of Governors of the Federal Reserve System at
http://www.federalreserve.gov/releases/h15/update, or any successor site or publications.

     “Higher Education Act” means the Higher Education Act of 1965, as amended, together
with any rules, regulations and interpretations thereunder.

     “Hold Notice” means a written statement (or an oral statement confirmed in writing,
which may be by e-mail) from a holder or beneficial owner of Reset Rate Notes denominated in U.S.
Dollars during the then-current and immediately following Reset Periods, delivered to a Remarketing
Agent that such holder or beneficial owner desires to hold its Reset Rate Notes for the upcoming
Reset Period and affirmatively agrees to receive a rate of interest of not less than the applicable
All Hold Rate during that Reset Period.

     “Indenture” means the Indenture, dated as of September 1, 2005, among the Eligible
Lender Trustee on behalf of the Trust, the Trust and the Indenture Trustee.

     “Indenture Trust Estate” means all money, instruments, rights and other property that
are subject or intended to be subject to the lien and security interest of the Indenture for the
benefit of the Noteholders and, as applicable, each Swap Counterparty (including all Collateral
Granted to the Indenture Trustee), including all proceeds thereof.

     “Indenture Trustee” means Deutsche Bank Trust Company Americas, a New York banking
corporation, not in its individual capacity but solely as trustee under the Indenture.

     “Independent” means, when used with respect to any specified Person, that the Person
(a) is in fact independent of the Trust, any other obligor upon the Notes, the Depositor and any
Affiliate of any of the foregoing Persons, (b) does not have any direct financial interest or any

Appendix A-1-24

 

material indirect financial interest in the Trust, any such other obligor, the Depositor or
any Affiliate of any of the foregoing Persons and (c) is not connected with the Trust, any such
other obligor, the Depositor or any Affiliate of any of the foregoing Persons as an officer,
employee, promoter, underwriter, placement agent, trustee, partner, director or person performing
similar functions.

     “Independent Certificate” means a certificate or opinion to be delivered to the
Indenture Trustee under the circumstances described in, and otherwise complying with, the
applicable requirements of Section 11.1 of the Indenture, made by an Independent appraiser or other
expert appointed by an Issuer Order and approved by the Indenture Trustee in the exercise of
reasonable care, and such opinion or certificate shall state that the signer has read the
definition of “Independent” in the Indenture and that the signer is Independent within the meaning
thereof.

     “Index” or “Indices” means LIBOR, EURIBOR, GBP-LIBOR, a Commercial Paper Rate,
the CMT Rate, the Federal Funds Rate, the 91-day Treasury Bill Rate, the Prime Rate or any other
interest rate index specified in Schedule A to the Reset Rate Notes.

     “Index Maturity” means, with respect to any Accrual Period, the interval between
Interest Rate Change Dates for each applicable Index during such Accrual Period, commencing on the
first day of that Accrual Period.

     “Initial Accrual Rate” means for each class of Notes and the Accrual Period commencing
on the Closing Date to, but excluding, the first Distribution Date, the rate per annum as
determined on the related Determination Date, as follows:

X
+ [5/32 * (Y - X)]

where:

X = Four-Month LIBOR and

Y = Five-Month LIBOR

     “Initial Cutoff Date” means September 20, 2005.

     “Initial Cutoff Date Pool Balance” means, as of the Cutoff Date and with respect to
the Initial Trust Student Loans, $2,500,536,593.

     “Initial Interest Rate Swap Agreement” means the initial Interest Rate Swap Agreement
relating to the Class A-4 Notes, dated as of September 20, 2005, between the Trust and the Initial
Interest Rate Swap Counterparty.

     “Initial Interest Rate Swap Counterparty” means Deutsche Bank AG, New York Branch.

     “Initial Pool Balance” means the sum of the Pool Balance of the Initial Trust Student
Loans as of the Closing Date and all amounts deposited into the Supplemental Purchase Account and
the Add-On Consolidation Loan Account on the Closing Date.

Appendix A-1-25

 

     “Initial Remarketing Agency Agreement” means each agreement, substantially in the form
of Appendix B to the Remarketing Agreement to be entered into on each Remarketing Terms
Determination Date (unless a Call Option has been exercised) among the Remarketing Agents, the
Administrator and the Trust.

     “Initial Reset Date” means, for the Reset Rate Notes, October 27, 2008.

     “Initial Reset Date Notice” means the written notice delivered pursuant to Section
3(a) of the Reset Rate Note Procedures.

     “Initial Trust Student Loans” means the Trust Student Loans purchased by the Trust on
the Closing Date pursuant to the Sale Agreement.

     “Initial U.S. Dollar Reset Rate Notes” means the Class A-4 Notes.

     “Insolvency Event” means, with respect to a specified Person, (a) the filing of a
decree or order for relief by a court having jurisdiction in the premises in respect of such Person
or any substantial part of its property in an involuntary case under any applicable Federal or
state bankruptcy, insolvency or other similar law now or hereafter in effect, or appointing a
receiver, liquidator, assignee, custodian, trustee, sequestrator or similar official for such
Person or for any substantial part of its property, or ordering the winding-up or liquidation of
such Person’s affairs, which decree or order remains unstayed and in effect for a period of 60
consecutive days; or (b) the commencement by such Person of a voluntary case under any applicable
Federal or state bankruptcy, insolvency or other similar law now or hereafter in effect, or the
consent by such Person to the entry of an order for relief in an involuntary case under any such
law, or the consent by such Person to the appointment of or taking possession by a receiver,
liquidator, assignee, custodian, trustee, sequestrator or similar official for such Person or for
any substantial part of its property, or the making by such Person of any general assignment for
the benefit of creditors, or the failure by such Person generally to pay its debts as such debts
become due, or the taking of action by such Person in furtherance of any of the foregoing.

     “Interest Rate Change Date” means for each Accrual Period, the date or dates, based on
the applicable Index, on which the rate of interest for the Reset Rate Notes, when they bear
interest at a floating rate, is to be reset.

     “Interest Rate Determination Date” means, for each Accrual Period, and (i) for the
Reset Rate Notes that bear interest at a LIBOR-, GBP-LIBOR- or EURIBOR-based rate, the related
LIBOR or EURIBOR Determination Date, as applicable, or (ii) for the Reset Rate Notes that bear
interest at a floating rate that is not LIBOR-, GBP-LIBOR- or EURIBOR-based, the applicable date or
dates set forth in the Remarketing Terms Notice, on which the applicable rate of interest to be in
effect as of the next Interest Rate Change Date will be determined by the Administrator.

     “Interest Rate Swap Agreement” means, with respect to the Reset Rate Notes during any
Reset Period when they are denominated in U.S. Dollars and (i) bear a fixed rate of interest (or
bear interest based on LIBOR or a U.S. Commercial Paper Rate, if a Swap Agreement is to be entered
into pursuant to the Reset Rate Note Procedures), or (ii) bear interest based on an index

Appendix A-1-26

 

other than LIBOR or a U.S. Commercial Paper Rate, any Swap Agreement between the Trust and an
Eligible Swap Counterparty, to hedge the basis risk during the related Reset Period.

     “Interest Subsidy Payments” means payments, designated as such, consisting of interest
subsidies by the Department in respect of the Trust Student Loans to the Eligible Lender Trustee on
behalf of the Trust in accordance with the Higher Education Act.

     “Interim Eligible Lender Trustee” means Chase Bank USA, National Association, a
national banking association, not in its individual capacity but solely as Interim Eligible Lender
Trustee under the Interim Trust Agreement. “Interim Eligible Lender Trustee” shall also mean each
successor Interim Eligible Lender Trustee as of the qualification of such Interim Eligible Lender
Trustee under the Interim Trust Agreement.

     “Interim Trust Agreement” means the Funding Interim Trust Agreement and the VG Funding
Interim Trust Agreement.

     “Interim Trust Loans” has the meaning set forth in the Interim Trust Agreement.

     “Investment Earnings” means, with respect to any Distribution Date, the investment
earnings (net of losses and investment expenses) on amounts on deposit in the Trust Accounts to be
deposited into the Collection Account on or prior to such Distribution Date pursuant to Section
2.3(b) of the Administration Agreement.

     “Investment Premium Purchase Account” means each account designated as such,
established and maintained pursuant to Section 2.3(l) of the Administration Agreement.

     “Investment Premium Purchase Account Deposit Amount” means, with respect to each
Distribution Date when funds are deposited into an Accumulation Account, an amount equal to 1.0% of
the amount deposited into that Accumulation Account on such Distribution Date.

     “Investment Premium Purchase Account Release Amount” means, with respect to any
Distribution Date that is one year or less prior to a Reset Date relating to the Reset Rate Notes
for which funds are then on deposit in an Accumulation Account, the amount, if any, to be withdrawn
from the related Investment Premium Purchase Account so that the remaining funds on deposit in such
Investment Premium Purchase Account will be equal to the lesser of (a) 1.00% of the amount on
deposit in the related Accumulation Account, and (b) the amount then on deposit the related
Investment Premium Purchase Account; provided that on any Distribution Date that is also a
Reset Date for the Reset Rate Notes for which amounts are then on deposit in an Accumulation
Account, all Investment Premium Purchase Account Deposit Amounts relating to such Accumulation
Account that remain on deposit in the related Investment Premium Purchase Account will become part
of the related Investment Premium Purchase Account Release Amount on such Distribution Date.

     “Investment Reserve Account” means each account designated as such, established and
maintained pursuant to Section 2.3(m) of the Administration Agreement.

     “Investment Reserve Account Required Amount” means, with respect to each Distribution
Date, immediately following the date when the ratings of any Eligible Investment in

Appendix A-1-27

 

an Accumulation Account has been downgraded by one or more Rating Agencies, an amount (to the
extent of Available Funds), to be set by each applicable Rating Agency in satisfaction of the
Rating Agency Condition (but not to exceed the amount of the unrealized loss on the related
Eligible Investment).

     “Issuer” means the Trust and, for purposes of any provision contained in the Indenture
and required by the TIA, each other obligor on the Notes.

     “Issuer Order” and “Issuer Request” means a written order or request signed in
the name of the Issuer by any one of its Authorized Officers and delivered to the Indenture
Trustee.

     “LIBOR” means Three-Month LIBOR, Four-Month LIBOR or Five-Month LIBOR, as applicable.

     “LIBOR Determination Date” means, for each Accrual Period, the second Business Day
before the beginning of that Accrual Period.

     “Lien” means a security interest, lien, charge, pledge, equity or encumbrance of any
kind, other than tax liens and any other liens, if any, which attach to the respective Trust
Student Loan by operation of law as a result of any act or omission by the related Obligor.

     “Liquidated Student Loan” means any defaulted Trust Student Loan liquidated by the
Servicer (which shall not include any Trust Student Loan on which Guarantee Payments are received)
or which the Servicer has, after using all reasonable efforts to realize upon such Trust Student
Loan, determined to charge off.

     “Liquidation Proceeds” means, with respect to any Liquidated Student Loan which became
a Liquidated Student Loan during the current Collection Period in accordance with the Servicer’s
customary servicing procedures, the moneys collected in respect of the liquidation thereof from
whatever source, other than Recoveries, net of the sum of any amounts expended by the Servicer in
connection with such liquidation and any amounts required by law to be remitted to the Obligor on
such Liquidated Student Loan.

     “Loan” has the meaning set forth in Section 2 of each of the Purchase Agreements, as
applicable, and each Additional Purchase Agreement.

     “Lock-In Period” means a period from the first day of such Lock-In Period (which may
be expressed as a number of Business Days prior to a Distribution Date) to the immediately
succeeding Interest Payment Date during which the interest rate, Index or other calculation in
effect on the first day of such Lock-In Period shall remain in effect for every day in such Lock-In
Period.

     “London Paying Agent” means, with respect to the Reset Rate Notes while in Foreign
Exchange Mode, the Indenture Trustee or any other Person that meets the eligibility standards for
the Indenture Trustee specified in Section 6.11 of the Indenture and is authorized by the Eligible
Lender Trustee on behalf of the Trust to make the payments to and distributions from the Euro
Account, the Pounds Sterling Account and any Other Currency Account, which authorized Person shall
initially be Deutsche Bank AG London Branch.

Appendix A-1-28

 

     “Luxembourg Listing Agent” means, initially, Deutsche Bank Luxembourg SA.

     “Luxembourg Paying Agent” means, initially, Deutsche Bank Luxembourg SA.

     “Minimum Purchase Amount” means an amount that would be sufficient to (i) reduce the
Outstanding Amount of each class of Notes, less the amount on deposit in any Accumulation Account
with respect to the Reset Rate Notes, on such Distribution Date to zero and (ii) pay to the
respective Noteholders the Class A Noteholders’ Interest Distribution Amount and the Class B
Noteholders’ Interest Distribution Amount payable on such Distribution Date.

     “Monthly Servicing Payment Date” means the 25th day of each calendar month
or, if such day is not a Business Day, the immediately following Business Day, commencing on
October 25, 2005.

     “Moody’s” means Moody’s Investors Service, Inc.

     “Note” and “Notes” means any of the Floating Rate Notes and the Reset Rate
Notes.

     “Note Depository Agreements” means the Letter of Representations, dated September 20,
2005, among the Trust, the Eligible Lender Trustee and the Indenture Trustee in favor of DTC.

     “Note Final Maturity Date” for a class of Notes means the Class A-1 Maturity Date, the
Class A-2 Maturity Date, the Class A-3 Maturity Date, the Class A-4 Maturity Date, the Class A-5
Maturity Date or the Class B Maturity Date, as applicable.

     “Note Interest Shortfall” means the Class A Note Interest Shortfall, if any, and/or
the Class B Note Interest Shortfall, if any, as applicable.

     “Note Owner” means, with respect to a Book-Entry Note, the Person who is the owner of
such Book-Entry Note, as reflected on the books of the applicable Clearing Agency, or on the books
of a Person maintaining an account with such Clearing Agency (directly as a Clearing Agency
Participant or as an indirect participant, in each case in accordance with the rules of such
Clearing Agency).

     “Note Pool Factor” means, as of the close of business on a Distribution Date, a
seven-digit decimal figure equal to the Outstanding Amount of a class of Notes divided by the
original Outstanding Amount of such class of Notes. The Note Pool Factor for each class will be
1.0000000 as of the Closing Date; thereafter, the Note Pool Factor for each class will decline to
reflect reductions in the Outstanding Amount of that class of Notes.

     “Note Rates” means, with respect to any Accrual Period, the Class A-1 Rate, the Class
A-2 Rate, the Class A-3 Rate, the Class A-4 Rate, the Class A-5 Rate and the Class B Rate for such
Accrual Period, collectively.

     “Note Register” and “Note Registrar” have the respective meanings specified in
Section 2.4 of the Indenture.

Appendix A-1-29

 

     “Noteholder” means a Floating Rate Noteholder, a Class A Noteholder, a Reset Rate
Noteholder or a Class B Noteholder, as the context requires.

     “Notes” means the Class A-1 Notes, the Class A-2 Notes, the Class A-3 Notes, the Class
A-4 Notes, the Class A-5 Notes and the Class B Notes, collectively.

     “Notice Date” means, for the Reset Rate Notes, 12:00 p.m. (noon), New York City time,
on the sixth day prior to the Reset Date for that class.

     “Obligor” on a Trust Student Loan means the borrower or co-borrowers of such Trust
Student Loan and any other Person who owes payments in respect of such Trust Student Loan,
including the Guarantor thereof and, with respect to any Interest Subsidy Payment or Special
Allowance Payment, if any, thereon, the Department.

     “Officers’ Certificate” means (i) in the case of the Trust, a certificate signed by
any two Authorized Officers of the Eligible Lender Trustee, under the circumstances described in,
and otherwise complying with, the applicable requirements of Section 11.1 of the Indenture, and
delivered to the Indenture Trustee, and (ii) in the case of the Depositor, the Administrator or the
Servicer, a certificate signed by any two Authorized Officers of the Depositor, the Administrator
or the Servicer, as applicable.

     “Opinion of Counsel” means (i) with respect to the Trust, one or more written opinions
of counsel who may, except as otherwise expressly provided in the Indenture, be employees of or
counsel to the Eligible Lender Trustee, the Trust, the Depositor or an Affiliate of the Depositor
and who shall be satisfactory to the Indenture Trustee, and which opinion or opinions shall be
addressed to the Indenture Trustee as Indenture Trustee, shall comply with any applicable
requirements of Section 11.1 of the Indenture and shall be in form and substance satisfactory to
the Indenture Trustee, and (ii) with respect to the Depositor, the Administrator or the Servicer,
one or more written opinions of counsel who may be an employee of or counsel to the Depositor, the
Administrator or the Servicer, which counsel shall be acceptable to the Indenture Trustee and the
Eligible Lender Trustee.

     “Origination Fee” means any origination fee payable to the Department by the lender
with respect to any Trust Student Loan.

     “Other Currency Account” means each account designated as such, established and
maintained pursuant to Section 2.3(n) of the Administration Agreement.

     “Outstanding” means, as of any date of determination, all Notes theretofore
authenticated and delivered under the Indenture except:

          (a) Notes theretofore cancelled by the Note Registrar or delivered to the Note Registrar for
cancellation;

          (b) Notes, or portions thereof, for which payment has been made to the applicable Noteholders
in reduction of the outstanding principal balance thereof or for which money in the necessary
amount has been theretofore deposited with the Indenture Trustee or any Paying Agent in trust for
the Noteholders thereof (excluding for such purpose any amounts on

Appendix A-1-30

 

deposit in any Accumulation Account); provided, however, that if such Notes
are to be redeemed, notice of such redemption has been duly given pursuant to the Indenture; and

          (c) Notes in exchange for or in lieu of other Notes which have been authenticated and
delivered pursuant to the Indenture unless proof satisfactory to the Indenture Trustee is presented
that any such Notes are held by a bona fide purchaser; provided that in determining whether
the Noteholders of the requisite Outstanding Amount of the Notes have given any request, demand,
authorization, direction, notice, consent or waiver hereunder or under any other Basic Document,
Notes owned by the Trust, any other obligor upon the Notes, the Depositor or any Affiliate of any
of the foregoing Persons shall be disregarded and deemed not to be Outstanding, except that, in
determining whether the Indenture Trustee shall be protected in relying upon any such request,
demand, authorization, direction, notice, consent or waiver, only Notes that a Responsible Officer
of the Indenture Trustee either actually knows to be so owned or has received written notice
thereof shall be so disregarded. Notes so owned that have been pledged in good faith may be
regarded as Outstanding if the pledgee establishes to the satisfaction of the Indenture Trustee the
pledgee’s right so to act with respect to such Notes and that the pledgee is not the Trust, any
other obligor upon the Notes, the Depositor or any Affiliate of any of the foregoing Persons.

     “Outstanding Amount” means, as of any date of determination, the aggregate principal
balance of all the Notes or the applicable class or classes of Notes, as the case may be,
Outstanding at such date of determination; provided, however, that if the Reset
Rate Notes are then in Foreign Exchange Mode, the Outstanding Amount shall be based on the U.S.
Dollar Equivalent Principal Amount of the Reset Rate Notes.

     “Paying Agent” means, with respect to the Notes (other than the Reset Rate Notes when
they are denominated in a currency other than U.S. Dollars), the Indenture Trustee or any other
Person that meets the eligibility standards for the Indenture Trustee specified in Section 6.11 of
the Indenture and is authorized by the Eligible Lender Trustee, on behalf of the Trust, to make the
payments to and distributions from the Collection Account and payments of principal of and interest
and any other amounts owing on the Notes on behalf of the Trust. With respect to the Reset Rate
Notes denominated in a currency other than U.S. Dollars, Paying Agent means the London Paying Agent
and the Luxembourg Paying Agent.

     “Person” means any individual, corporation, estate, partnership, joint venture,
association, joint stock company, trust (including any beneficiary thereof), unincorporated
organization, limited liability company, limited liability partnership or government or any agency
or political subdivision thereof.

     “Physical Property” has the meaning assigned to such terms in the definition of
“Delivery” above.

     “Pool Balance” for any date means the aggregate principal balance of the Trust Student
Loans on that date (including accrued interest that is expected to be capitalized) as such balance
has been reduced through such date by:

Appendix A-1-31

 

          (a) all payments received by the Trust through that date from borrowers, the Guarantors and
the Department;

          (b) all amounts received by the Trust through that date from repurchases of the Trust Student
Loans by SLM ECFC, VG Funding, or the Depositor, as applicable, or purchases by the Servicer;

          (c) all Liquidation Proceeds and Realized Losses on the Trust Student Loans liquidated through
that date;

          (d) the amount of any adjustments to the outstanding principal balances of the Trust Student
Loans that the Servicer makes under the Servicing Agreement through that date; and

          (e) the amount by which Guarantor reimbursements of principal on defaulted Trust Student Loans
through that date are reduced from 100% to 98%, or other applicable percentage, as required by the
risk sharing provisions of the Higher Education Act.

     “Pounds Sterling Account” means any account designated as such, established and
maintained pursuant to Section 2.3(p) of the Administration Agreement.

     “Predecessor Note” means, with respect to any particular Note, every previous Note
evidencing all or a portion of the same debt as that evidenced by such particular Note; and, for
the purpose of this definition, any Note authenticated and delivered under Section 2.5 of the
Indenture and in lieu of a mutilated, lost, destroyed or stolen Note shall be deemed to evidence
the same debt as the mutilated, lost, destroyed or stolen Note.

     “Primary Servicing Fee” for any Monthly Servicing Payment Date has the meaning
specified in Attachment A to the Servicing Agreement, and shall include any such fees from prior
Monthly Servicing Payment Dates that remain unpaid.

     “Prime Rate” means, for any relevant Interest Rate Determination Date prior to each
Interest Rate Change Date, the prime rate or base lending rate on that date, as published in
H.15(519), prior to 3:00 p.m., New York City time, on that Interest Rate Determination Date under
the heading “Bank Prime Loan.” The Administrator will observe the following procedures if the
Prime Rate cannot be determined as described above: (i) if the rate described above is not
published in H.15(519) prior to 3:00 p.m., New York City time, on the relevant Interest Rate
Determination Date unless the calculation is made earlier and the rate was available from that
source at that time, then the Prime Rate will be the rate for that Interest Rate Determination
Date, as published in H.15 Daily Update or another recognized electronic source for displaying such
rate opposite the caption “Bank Prime Loan”, (ii) if the above rate is not published in either
H.15(519), H.15 Daily Update or another recognized electronic source for displaying such rate by
3:00 p.m., New York City time, on the relevant Interest Rate Determination Date, then the
Administrator will determine the Prime Rate to be the average of the rates of interest publicly
announced by each bank that appears on the Reuters screen designated as “USPRIME1” as that bank’s
prime rate or base lending rate as in effect on that Interest Rate Determination Date, (iii) if
fewer than four rates appear on the Reuters screen USPRIME1 page on the relevant Interest Rate
Determination Date, then the Prime Rate will be the average of the prime rates or

Appendix A-1-32

 

base lending rates quoted, on the basis of the actual number of days in the year divided by a
360-day year, as of the close of business on that Interest Rate Determination Date by three major
banks in New York City selected by the Administrator, or (iv) if the banks selected by the
Administrator are not quoting as mentioned above, the Prime Rate will remain the prime rate then in
effect on that Interest Rate Determination Date.

     “Principal Distribution Amount” means, (i) with respect to the initial Distribution
Date, the amount by which the sum of the Outstanding Amount of the Notes exceeds the Adjusted Pool
Balance for that Distribution Date, and (ii) with respect to each subsequent Distribution Date, the
sum of the amount by which the Adjusted Pool Balance for the preceding Distribution Date exceeds
the Adjusted Pool Balance for that Distribution Date.

     “Proceeding” means any suit in equity, action at law or other judicial or
administrative proceeding.

     “Purchase Agreement” means either the SLM ECFC Purchase Agreement or the VG Funding
Purchase Agreement, each dated as of September 20, 2005.

     “Purchase Amount” with respect to any Trust Student Loan means the amount required to
prepay in full such Trust Student Loan under the terms thereof including all accrued and unpaid
interest thereon.

     “Purchased Student Loan” means a Trust Student Loan which is, as of the close of
business on the last day of a Collection Period, purchased by the Servicer pursuant to Section 3.5
of the Servicing Agreement or repurchased by the Depositor pursuant to Section 6 of the Sale
Agreement, repurchased by SLM ECFC pursuant to Section 6 of the SLM ECFC Purchase Agreement,
repurchased by VG Funding pursuant to Section 6 of the VG Funding Purchase Agreement or sold to
another eligible lender holding one or more Serial Loans with respect to such Trust Student Loan
pursuant to Section 3.11E of the Servicing Agreement.

     “QIB” means a “qualified institutional buyer” as defined in Rule 144A under the Act.

     “Quarterly Funding Amount” means, for the Reset Rate Notes, for any Distribution Date
that is (1) more than one year before the next Reset Date, zero and (2) one year or less before the
next Reset Date, an amount to be deposited into the Remarketing Fee Account for the Reset Rate
Notes so that the amount therein in respect of that class equals the Quarterly Required Amount for
that class; provided, however, that if on any Distribution Date that is not a Reset
Date, the amount on deposit in the Remarketing Fee Account in respect of that class is greater than
the Quarterly Required Amount for that class, such excess will be transferred to the Collection
Account and included in Available Funds for that Distribution Date.

     “Quarterly Required Amount” means, for the Reset Rate Notes, (1) on any Reset Date,
the Reset Period Target Amount for that class or (2) on a Distribution Date that is one year or
less before the next Reset Date (x) the Reset Period Target Amount multiplied by (y) five (5) minus
the number of Distribution Dates remaining until the next Reset Date (excluding the current
Distribution Date and including the next Reset Date), divided by (z) five (5).

Appendix A-1-33

 

     “Rating Agency” means Moody’s, S&P and Fitch. If any such organization or successor
thereto is no longer in existence, “Rating Agency” with respect to such organization shall be a
nationally recognized statistical rating organization or other comparable Person designated by the
Administrator, notice of which designation shall be given to the Indenture Trustee, the Eligible
Lender Trustee and the Servicer.

     “Rating Agency Condition” means, with respect to any intended action, that each Rating
Agency then rating a class of Notes shall have been given 10 days’ prior written notice thereof and
that each such Rating Agency shall have notified the Administrator, the Servicer, the Eligible
Lender Trustee, the Indenture Trustee and the Remarketing Agents, if applicable, in writing that
such proposed action will not result in and of itself in the reduction or withdrawal of its
then-current rating of any class of Notes.

     “Realized Loss” means the excess of the principal balance, including any interest that
had been or had been expected to be capitalized, of any Liquidated Student Loan over Liquidation
Proceeds for that Liquidated Student Loan to the extent allocable to principal, including any
interest that had been or had been expected to be capitalized.

     “Record Date” means, with respect to a Distribution Date or Redemption Date and for
each class of Notes, the close of business on the day preceding such Distribution Date or
Redemption Date.

     “Recoveries” means moneys collected from whatever source with respect to any
Liquidated Student Loan which was written off in prior Collection Periods or during the current
Collection Period, net of the sum of any amounts expended by the Servicer for the account of any
Obligor and any amounts required by law to be remitted to any Obligor.

     “Redemption Date” means in the case of a payment to Noteholders pursuant to Section
10.1 of the Indenture, the Distribution Date specified pursuant to Section 10.1 of the Indenture.

     “Redemption Price” means an amount equal to the Outstanding Amount of the Notes, plus
accrued and unpaid interest thereon at the applicable Note Rates to but excluding the Redemption
Date.

     “Reference Banks” means, with respect to (i) LIBOR, four major banks in the London
interbank market for deposits in U.S Dollars selected by the Administrator, (ii) EURIBOR, four
major banks in the Euro-zone interbank market for deposits in Euros selected by the Administrator
and (iii) GBP-LIBOR, four major banks in the London interbank market for deposits in Pounds
Sterling selected by the Administrator.

     “Registrar” means the Excess Distribution Certificate Registrar and/or the Note
Registrar, as applicable.

     “Remarketing Agency Agreement” means the collective reference to an Initial
Remarketing Agency Agreement and the Supplemental Remarketing Agency Agreement.

Appendix A-1-34

 

     “Remarketing Agent” means, initially, each of Deutsche Bank Securities Inc. and
Merrill Lynch, Pierce, Fenner & Smith Incorporated. The Administrator, in its sole discretion, may
change any Remarketing Agent for the Reset Rate Notes for any Reset Period at any time on or before
a Remarketing Terms Determination Date.

     “Remarketing Agreement” means the Remarketing Agreement dated as of September 20, 2005
among the Remarketing Agents, the Administrator and the Trust, as amended or supplemented from time
to time.

     “Remarketing Fee Account” means the account designated as such, established and
maintained pursuant to Section 2.3(i) of the Administration Agreement.

     “Remarketing Prospectus” as described in Section 7(e)(i) of the Remarketing Agreement.

     “Remarketing Terms Determination Date” means, for the Reset Rate Notes, not later than
3:00 p.m., New York City time, on the eighth Business Day prior to the applicable Reset Date.

     “Remarketing Terms Notice” means the notice delivered by the Remarketing Agents to a
the Reset Rate Noteholders, the Indenture Trustee, the Rating Agencies and the applicable Clearing
Agencies on each Remarketing Terms Determination Date containing the information set forth in the
Reset Rate Note Procedures (Appendix A-2 to the Indenture).

     “Reserve Account” means the account designated as such, established and maintained
pursuant to Section 2.3(g) of the Administration Agreement.

     “Reserve Account Initial Deposit” means $6,301,341.

     “Reset Date” means a Distribution Date on which certain terms for the Reset Rate Notes
may be changed in accordance with the Reset Rate Note Procedures (Appendix A-2 to the Indenture).

     “Reset Period” means, with respect to the Reset Rate Notes, a period of at least three
months (or any other longer duration that is a multiple of three months) that will always end on
the day before a Distribution Date, which such Distribution Date will be the next Reset Date;
provided that no such Reset Period may end after the day before the Reset Rate Notes
Maturity Date.

     “Reset Period Target Amount” means, for the Reset Rate Notes, for any Distribution
Date that is (1) more than one year before the next Reset Date, zero, and (2) one year or less
before the next Reset Date, the highest remarketing fee payable to the Remarketing Agents for the
Reset Rate Notes (not to exceed 0.35% of the maximum principal balance of the Reset Rate Notes that
could be remarketed) on the next Reset Date as determined by the Administrator based on the assumed
weighted average life of the Reset Rate Notes and the maximum remarketing fee set forth on a
schedule attached to the Remarketing Agreement, as such schedule may be amended from time to time.

     “Reset Rate Note” means any Class A-4 Note.

Appendix A-1-35

 

     “Reset Rate Note Procedures” means Appendix A-2 to the Indenture.

     “Reset Rate Noteholder” means the Person in whose name a Reset Rate Note is registered
in the Note Register.

     “Reset Rate Notes” means the Class A-4 Notes.

     “Reset Rate Notes Maturity Date” means the Class A-4 Maturity Date.

     “Responsible Officer” means, with respect to the Indenture Trustee, any officer within
the Corporate Trust Office of the Indenture Trustee, including any Vice President, Assistant Vice
President, Assistant Treasurer, Assistant Secretary, or any other officer of the Indenture Trustee
customarily performing functions similar to those performed by any of the above designated
officers, with direct responsibility for the administration of the Indenture and the other Basic
Documents on behalf of the Indenture Trustee and also, with respect to a particular matter, any
other officer to whom such matter is referred because of such officer’s knowledge of and
familiarity with the particular subject.

     “S&P” means Standard & Poor’s Ratings Services, a division of The McGraw-Hill
Companies, Inc.

     “Sale Agreement” means the Sale Agreement Master Securitization Terms Number 1000,
dated as of September 20, 2005, among the Eligible Lender Trustee on behalf of the Trust, the
Trust, the Interim Eligible Lender Trustee and the Depositor, and the sale agreement or agreements
entered into thereunder.

     “Schedule of Trust Student Loans” means the listing of the Trust Student Loans set
forth in Schedule A to the Indenture and the Bill of Sale (which Schedule may be in the form of
microfiche).

     “Schedule Replacement Order” means an Issuer Order replacing Schedule A to the Reset
Rate Notes to be delivered with respect to the Reset Date.

     “Servicer” means Sallie Mae, Inc., in its capacity as servicer of the Trust Student
Loans.

     “Servicer Default” means an event specified in Section 5.1 of the Servicing Agreement.

     “Servicer Distribution Date” has the meaning specified in the Servicing Agreement.

     “Servicer’s Report” means any report of the Servicer delivered pursuant to Section
3.1(a) of the Administration Agreement, substantially in the form acceptable to the Administrator.

     “Servicing Agreement” means the Servicing Agreement, dated as of September 20, 2005,
among the Trust, the Eligible Lender Trustee, the Servicer, the Administrator and the Indenture
Trustee.

     “Servicing Fee” has the meaning specified in Attachment A to the Servicing Agreement.

Appendix A-1-36

 

     “SLM ECFC” means SLM Education Credit Finance Corporation.

     “SLM ECFC Purchase Agreement” means the Purchase Agreement Master Securitization Terms
Number 1000, dated as of September 20, 2005, among SLM ECFC, the Interim Eligible Lender Trustee
and the Depositor, as well as each purchase agreement entered into thereunder.

     “SLS Loan” means a Trust Student Loan designated as such that is made under the
Supplemental Loans for Students Program in accordance with the Higher Education Act.

     “Special Allowance Payments” means payments, designated as such, consisting of
effective interest subsidies by the Department in respect of the Trust Student Loans to the
Eligible Lender Trustee on behalf of the Trust in accordance with the Higher Education Act.

     “Specified Reserve Account Balance” means, for any Distribution Date, the greater of:

	 	(a)	 	0.25% of the sum of (i) the Pool Balance and (ii) the amount,
if any, on deposit in the Add-On Consolidation Loan Account (excluding amounts
in each such account that will become Available Funds on the related
Distribution Date), each as of the close of business on the last day of the
related Collection Period; and
	 
	 	(b)	 	$3,780,805;

provided that in no event will that balance exceed the Outstanding Amount. For these
purposes, if the Reset Rate Notes are structured not to receive a payment of principal until the
end of the related Reset Period, the Outstanding Amount, or its U.S. Dollar Equivalent Principal
Amount, as applicable, of the Reset Rate Notes will be reduced by any amounts (less any Investment
Earnings) on deposit in the related Accumulation Account for the Reset Rate Notes.

     “Spread” means the percentage, determined by the Remarketing Agents with respect to
the Reset Rate Notes if they are to bear a floating rate of interest, in excess of or below the
applicable interest rate Index that will be applicable to the Reset Rate Notes during any Reset
Period after the initial Reset Period so as to result in an interest rate that, in the reasonable
opinion of the Remarketing Agents, will enable all of the tendered Reset Rate Notes of that class
to be remarketed by the Remarketing Agents at 100% of the Outstanding Amount thereof.

     “Spread Determination Date” means, for any class of Reset Rate Notes, not later than
3:00 p.m., New York City time, on the third Business Day prior to the applicable Reset Date.

     “Spread Determination Notice” means the notice delivered by the Remarketing Agents to
the Noteholders of the Reset Rate Notes, the Indenture Trustee, the Rating Agencies, the Clearing
Agencies and, if the Reset Rate Notes are then listed on the Luxembourg Stock Exchange, the
Luxembourg Stock Exchange on each Spread Determination Date containing the information set forth in
the Reset Rate Note Procedures (Appendix A-2 to the Indenture).

     “Stafford Loan” means a Trust Student Loan designated as such that is made under the
Stafford Loan Program in accordance with the Higher Education Act.

Appendix A-1-37

 

     “State” means any one of the 50 States of the United States of America or the District
of Columbia.

     “Statistical Cutoff Date” means August 22, 2005.

     “Stepdown Date” means the earlier to occur of (i) the October 2011 Distribution Date
or (ii) the first date on which no Class A Notes remain Outstanding. For this purpose, the
Outstanding Principal Balance of the Reset Rate Notes will be deemed reduced by any amounts (other
than Investment Earnings) on deposit in any related Accumulation Account.

     “Student Loans” means education loans to students and parents of students under the
Federal Family Education Loan Program.

     “Subsequent Cutoff Date” with respect to each Additional Trust Student Loan or
Substituted Trust Student Loan has the meaning set forth in the related Additional Purchase
Agreement and Additional Sale Agreement.

     “Substituted Trust Student Loan” means each Eligible Loan substituted by the Depositor
pursuant to Section 6(B) of the Sale Agreement and each related Additional Sale Agreement.

     “Successor Administrator” has the meaning specified in Section 3.7(e) of the
Indenture.

     “Successor Servicer” has the meaning specified in Section 3.7(e) of the Indenture.

     “Supplemental Interest Account” means any account designated as such, established and
maintained pursuant to Section 2.3(k) of the Administration Agreement.

     “Supplemental Interest Account Deposit Amount” means, with respect to any Distribution
Date when the Reset Rate Notes are then structured not to receive a payment of principal until the
end of the Reset Period, the lesser of:

	 	(a)	 	the product of:

	 	 	 	(1) the difference between (x) the weighted average of the LIBOR-based rates (as
determined on the LIBOR Determination Date immediately preceding that Distribution
Date) that will be payable by the Trust to any related Swap Counterparties on the
next Distribution Date, or the LIBOR-based rate (as determined on the LIBOR
Determination Date immediately preceding that Distribution Date) that will be
payable by the Trust to the related Noteholders on the next Distribution Date, as
applicable, and (y) an assumed rate of Investment Earnings that satisfies the Rating
Agency Condition,
	 
	 	 	 	(2) the amount on deposit in the related Accumulation Account immediately after that
Distribution Date, and
	 
	 	 	 	(3) the actual number of days from that Distribution Date to the next Reset Date for
the Reset Rate Notes, divided by 360; and

	 	(b)	 	an amount that satisfies the Rating Agency Condition.

Appendix A-1-38

 

     “Supplemental Purchase Account” means an account designated as such, established and
maintained pursuant to Section 2.3(q) of the Administration Agreement.

     “Supplemental Purchase Account Initial Deposit” means $7,434,190.89 which is equal to
the excess, if any, of (x) the Pool Balance as of the Statistical Cutoff Date over (y) the Initial
Cutoff Date Pool Balance; provided that such amount is not in excess of 5% of the Pool Balance as
of the Statistical Cutoff Date.

     “Supplemental Purchase Period” means the period beginning on the Closing Date and
ending ten (10) business days later on October 4, 2005.

     “Supplemental Remarketing Agency Agreement” means each agreement, substantially in the
form of Appendix C to the Remarketing Agreement to be entered into on each Spread Determination
Date (unless a Call Option has been exercised or a Failed Remarketing has been declared) among the
Remarketing Agents, the Administrator and the Trust.

     “Swap Agreement” means the applicable ISDA Master Agreement, and each related swap
schedule and/or Swap Confirmation with respect to the Initial Interest Rate Swap Agreement and any
Currency Swap Agreement and/or Interest Rate Swap Agreement to be entered into from time to time by
the Administrator or the Eligible Lender Trustee in either case solely on behalf of the Trust and
an Eligible Swap Counterparty, pursuant to the terms and conditions set forth in the Reset Rate
Note Procedures.

     “Swap Confirmation” means each swap confirmation relating to a Swap Agreement.

     “Swap Counterparty” means each Eligible Swap Counterparty from time to time party to a
Swap Agreement and the Initial Interest Rate Swap Counterparty (with respect to the Initial
Interest Rate Swap Agreement).

     “Swap Interest Payments” means, with respect to each Distribution Date, the amount
payable to the related Swap Counterparty by the Trust as a quarterly premium payment pursuant to
the related Swap Agreement.

     “Swap Payments” means, with respect to each Distribution Date, the amount, if any,
payable to a Swap Counterparty by the Trust for such date, including amounts due and unpaid from
prior Distribution Dates (other than Swap Termination Payments), as specified in the applicable
Swap Agreement.

     “Swap Receipts” means, with respect to each Distribution Date, the amount required to
be received from the related Swap Counterparty by the Trust for such date (other than Swap
Termination Payments), as specified in the related Swap Agreement.

     “Swap Termination Date” means the date on which Swap Agreement terminates in
accordance with its terms, which with respect to the Initial Interest Rate Swap Agreement is
October 27, 2008, the Initial Reset Date for the Class A-4 Notes.

     “Swap Termination Payments” shall have the meaning set forth in each Swap Agreement.

Appendix A-1-39

 

     “TARGET” means the Trans-European Automated Real-time Gross Settlement Express
Transfer System.

     “Telerate Page 248” means the display page so designated on the Moneyline Telerate
Service (or such other page as may replace that page on that service for the purpose of displaying
comparable rates or prices).

     “Telerate Page 3750” means the display page so designated on the Moneyline Telerate
Service (or such other page as may replace that page on that service for the purpose of displaying
comparable rates or prices).

     “Telerate Page 7051” means the display page so designated on the Moneyline Telerate
Service (or such other page as may replace that page on that service for the purpose of displaying
comparable rates or prices).

     “Telerate Page 7052” means the display page so designated on the Moneyline Telerate
Service (or such other page as may replace that page on that service for the purpose of displaying
comparable rates or prices).

     “Three-Month LIBOR”, “Four-Month LIBOR” and “Five-Month LIBOR” means, with respect to
any Accrual Period, the London interbank offered rate for deposits in U.S. Dollars having the Index
Maturity which appears on Telerate Page 3750 as of 11:00 a.m. London time, on the related LIBOR
Determination Date. If this rate does not appear on Telerate Page 3750, the rate for that day will
be determined on the basis of the rates at which deposits in U.S. Dollars, having the Index
Maturity and in a principal amount of not less than U.S. $1,000,000, are offered at approximately
11:00 a.m., London time, on that LIBOR Determination Date, to prime banks in the London interbank
market by the Reference Banks. The Administrator will request the principal London office of each
Reference Bank to provide a quotation of its rate. If the Reference Banks provide at least two
quotations, the rate for that day will be the arithmetic mean of the quotations. If the Reference
Banks provide fewer than two quotations, the rate for that day will be the arithmetic mean of the
rates quoted by major banks in New York City, selected by the Administrator, at approximately 11:00
a.m., New York time, on that LIBOR Determination Date, for loans in U.S. Dollars to leading
European banks having the Index Maturity and in a principal amount of not less than U.S.
$1,000,000. If the banks selected as described above are not providing quotations, LIBOR in effect
for the applicable Accrual Period will be LIBOR for the specified maturity in effect for the
previous Accrual Period.

     “Transfer” an offer, sale, pledge, transfer or other disposition of a Note or any
interest therein.

     “Transfer Date” has the meaning specified in Section 5.2(a) of the Administration
Agreement.

     “Treasury Regulations” means regulations, including proposed or temporary regulations,
promulgated under the Code. References in any document or instrument to specific provisions of
proposed or temporary regulations shall include analogous provisions of final Treasury Regulations
or other successor Treasury Regulations.

Appendix A-1-40

 

     “Trigger Event” means, on any Distribution Date while any of the Class A Notes are
outstanding, the Outstanding Amount of the Notes, less any amounts on deposit in any Accumulation
Account (other than Investment Earnings), after giving effect to distributions to be made on that
Distribution Date, would exceed the Adjusted Pool Balance as of the end of the related Collection
Period.

     “Trust” means SLM Student Loan Trust 2005-8, a Delaware statutory trust established
pursuant to the Trust Agreement.

     “Trust Account Property” means the Trust Accounts, all cash and investments held from
time to time in any Trust Account (whether in the form of deposit accounts, Physical Property,
book-entry securities, uncertificated securities or otherwise), including the Reserve Account
Initial Deposit, the Capitalized Interest Account Initial Deposit, the Supplemental Purchase
Account Initial Deposit, the Add-On Consolidation Loan Account Initial Deposit, the Collection
Account Initial Deposit and all earnings on and proceeds of the foregoing.

     “Trust Accounts” has the meaning specified in Section 2.3(b) of the Administration
Agreement.

     “Trust Agreement” means the short-form trust agreement, dated as of July 29, 2005,
between the Depositor and the Eligible Lender Trustee, as amended and restated pursuant to an
Amended and Restated Trust Agreement, dated as of September 20, 2005 among the Depositor, the
Eligible Lender Trustee and the Indenture Trustee.

     “Trust Auction Date” has the meaning specified in Section 4.4 of the Indenture.

     “Trust Estate” means all right, title and interest of the Trust (or the Eligible
Lender Trustee on behalf of the Trust) in and to the property and rights sold, transferred and
assigned to the Trust pursuant to the Sale Agreement and any Additional Sale Agreement, all funds
on deposit from time to time in the Trust Accounts and all other property of the Trust from time to
time, including any rights of the Eligible Lender Trustee and the Trust pursuant to the Trust
Agreement, the Administration Agreement, the Servicing Agreement, any Swap Agreements and any
Eligible Repurchase Obligations.

     “Trust Indenture Act” or “TIA” means the Trust Indenture Act of 1939 as in
force on the date hereof, unless otherwise specifically provided.

     “Trust Student Loan” means any student loan that is listed on the Schedule of Initial
Trust Student Loans on the Closing Date, plus any Additional Trust Student Loan, plus any student
loan that is permissibly substituted for a Trust Student Loan by the Depositor pursuant to Section
6 of the Sale Agreement or pursuant to Section 6 of an Additional Sale Agreement, or by the
Servicer pursuant to Section 3.5 of the Servicing Agreement, but shall not include any Purchased
Student Loan following receipt by or on behalf of the Trust of the Purchase Amount with respect
thereto or any Liquidated Student Loan following receipt by or on behalf of the Trust of
Liquidation Proceeds with respect thereto or following such Liquidated Student Loan having
otherwise been written off by the Servicer.

Appendix A-1-41

 

     “Trust Student Loan Files” means the documents specified in Section 2.1 of the
Servicing Agreement.

     “UCC” means, unless the context otherwise requires, the Uniform Commercial Code, as in
effect in the relevant jurisdiction, as amended from time to time.

     “Underwriter” means each of Deutsche Bank Securities Inc., Merrill Lynch, Pierce,
Fenner & Smith Incorporated, ABN AMRO Incorporated, Banc of America Securities LLC, Barclays
Capital Inc. and UBS Securities LLC.

     “U.S. Dollar Equivalent Principal Amount” means, with respect to the Reset Rate Notes
while in Foreign Exchange Mode, the U.S. Dollar equivalent of the Outstanding Amount of the Reset
Rate Notes in Foreign Exchange Mode as of the date of determination based on the exchange rate
provided in the related Currency Swap Agreement.

     “VG Funding” means VG Funding, LLC.

     “VG Funding Eligible Lender Trustee” means Chase Bank USA, National Association, a
national banking association, not in its individual capacity but solely as interim eligible lender
trustee for the benefit of VG Funding under the VG Funding Interim Trust Agreement.

     “VG Funding Interim Trust Agreement” means the Interim Trust Agreement, dated as of
September 1, 2005, between VG Funding and the VG Funding Eligible Lender Trustee.

     “VG Funding Purchase Agreement” means the Purchase Agreement Master Securitization
Terms Number 1000, dated as of September 20, 2005 among VG Funding, the VG Funding Interim Eligible
Trustee, the Interim Eligible Lender Trustee and the Depositor, as well as each purchase agreement
entered into thereunder.

Appendix A-1-42

 

Appendix A-2

RESET RATE NOTE PROCEDURES

     Section 1. Definitions: All terms which are defined in Appendix A-1 shall
have the same meanings in this Appendix A-2.

     Section 2.
Interest Rates; Principal Payments: (b) The Reset Rate Notes will bear
interest for each related Reset Period at the rate set forth on Schedule A attached to the Reset
Rate Notes as determined in accordance with Section 2(b) below; provided that during their
initial Reset Period, the Reset Rate Notes will bear interest from the Closing Date through and
including the Initial Reset Date at the rate set forth in the first sentence of the definition of
“Class A-4 Rate.” Interest on the Reset Rate Notes shall be payable by the Trust with respect to
each Distribution Date at the priority level set forth in Section 2.8(d) of the Administration
Agreement; provided that if interest due to the Reset Rate Notes is payable through a Swap
Agreement, the related Swap Interest Payments will be payable by the Trust to the related Swap
Counterparty, and by the Swap Counterparty to the Trust (for payment to the Reset Rate
Noteholders), as described in Section 10 below.

     (a) After the initial Reset Period, the Reset Rate Notes may be reset to bear either a fixed
or floating rate of interest at the option of the Remarketing Agents, in consultation with the
Administrator. The interest rate of the Reset Rate Notes will be reset as of each related Reset
Date as determined by (i) the Remarketing Agents, in consultation with the Administrator, with
respect to (A) the length of the related Reset Period, (B) whether the rate is fixed or floating
and (x) if floating, the applicable Index, or (y) if fixed, the applicable pricing benchmark, (C)
the applicable Day Count Basis, (D) the applicable currency denomination, i.e., U.S. Dollars,
Euros, Pounds Sterling or another non-U.S. Dollar currency, (E) if in Foreign Exchange Mode, the
applicable Distribution Dates on which interest will be paid to the Reset Rate Noteholders, if
other than quarterly, (F) the applicable Interest Rate Determination Dates within each Accrual
Period, (G) the interval between Interest Rate Change Dates during each Accrual Period and (H) if
applicable, the related All Hold Rate, and (ii) the Remarketing Agents (in their sole
determination) with respect to the setting of the (A) fixed rate of interest or (B) Spread to the
chosen Index, as applicable.

     (c) In the event that the Reset Rate Notes are reset (i) to bear (or continue to bear)
interest at a floating rate, (ii) to bear (or continue to bear) a fixed rate of interest and/or
(iii) to be denominated (or continue to be denominated) in a currency other than U.S. Dollars, and
the Remarketing Agents, in consultation with the Administrator determine that it would be in the
best interest of the Trust based on existing market conditions to enter into one or more Swap
Agreements, the Administrator will be responsible for arranging, on behalf of the Trust, one or
more Swap Agreements to hedge the basis risk and/or currency exchange risk (as applicable) and,
together with the Remarketing Agents, for selecting the Swap Counterparties thereto in accordance
with the procedures set forth in Section 10(d) below. The Reset Rate Notes will not be reset (or
continue) to bear interest at a floating rate that is not based on LIBOR or a Commercial Paper
Rate, at a fixed rate or to be denominated in a currency other than U.S. Dollars unless one or more
Swap Agreements are entered into as of the related Reset Date that results in the Rating Agency
Condition being satisfied. In connection with each Swap

Appendix A-2-1

 

Agreement, the Remarketing Agents shall solicit bids from Eligible Swap Counterparties in
accordance with the procedures set forth in Section 10(d) below.

     (d) The Reset Rate Notes shall be entitled either (i) to receive payments of principal in
reduction of their Outstanding Amount on each Distribution Date at the priority level set forth in
Section 2.8(f) of the Administration Agreement or (ii) if they are then structured not to receive a
payment of principal until the end of their Reset Period, to receive allocations of principal at
the priority level set forth in Section 2.8(f) of the Administration Agreement on each Distribution
Date; provided, however, that such amounts referred to in this clause (ii) shall
not be paid in reduction of the Outstanding Amount of the Reset Rate Notes, and instead such
amounts shall be deposited into the Accumulation Account for payment to the Reset Rate Noteholders
or the related Currency Swap Counterparty, as applicable, on or about the next Reset Date as set
forth in Section 11(a) below.

     Section 3. End of Reset Period Notice: (a) Unless the holder of the Call Option has
delivered the Call Option Notice, the Administrator, not less than fifteen nor more than thirty
calendar days prior to any Remarketing Terms Determination Date, will (i) give written notice
(including facsimile or other electronic transmission, if permitted pursuant to the recipient’s
standard procedures) to the applicable Clearing Agencies and the Luxembourg Stock Exchange (for so
long as the Reset Rate Notes are listed on such exchange), with a copy to the Indenture Trustee,
notifying them of the upcoming Reset Date and the identities of the Remarketing Agents and stating
whether tender is deemed mandatory or optional for the Reset Rate Notes on that Reset Date (the
“Initial Reset Date Notice”), (ii) request that each Clearing Agency notify its participants of (1)
the contents of the Initial Reset Date Notice, (2) the Remarketing Terms Notice to be given on the
Remarketing Terms Determination Date pursuant to Section 4(d) below, (3) the Spread Determination
Notice to be given on the Spread Determination Date pursuant to Section 9(e) below, and (4) if
applicable, the procedures concerning the timely delivery of a Hold Notice pursuant to Section 8
below that must be followed if any beneficial owner of the Reset Rate Notes wishes to retain its
Reset Rate Notes. For so long as the Reset Rate Notes are listed on the Luxembourg Stock Exchange,
a copy of such notices will be sent to the Luxembourg Stock Exchange and each of the Remarketing
Terms Notice and the Spread Determination Notice will also be published in a leading newspaper
having general circulation in Luxembourg (which is expected to be d’Wort) and (iii) provide
representatives of the Luxembourg Stock Exchange with the Remarketing Prospectus as defined in the
Remarketing Agreement.

     (b) The Administrator will also include in the Initial Reset Date Notice the names and contact
information of the Luxembourg Listing Agent, if applicable, and any Remarketing Agents confirmed or
appointed by the Administrator, or if no Remarketing Agents have then been so chosen, the
Administrator will provide adequate contact information for Reset Rate Noteholders to receive
information regarding the upcoming Reset Date.

     (c) If the related Clearing Agency or its respective nominee, as applicable, is no longer the
holder of record of the Reset Rate Notes, the Administrator, or the Remarketing Agents on its
behalf, will send the Reset Rate Noteholders, with a copy to the Indenture Trustee and the
Luxembourg Listing Agent, as applicable, the required notices setting forth the information in
Sections 3(a) and 3(b) above not less than fifteen nor more than thirty calendar

Appendix A-2-2

 

days prior to any Remarketing Terms Determination Date. In addition, in the event that
Definitive Notes evidencing an interest in the Reset Rate Notes are issued, the Administrator shall
cause the Note Registrar to provide to the Reset Rate Noteholders and the Luxembourg Listing Agent,
as applicable, any additional procedures applicable to the Reset Rate Notes while in definitive
form.

     Section 4. Remarketing Terms Determination Date: (a) Subject to the provisions of
the Remarketing Agreement, prior to the Remarketing Terms Determination Date, and unless the holder
of the Call Option has delivered the Call Option Notice, the Administrator shall re-affirm the
capability of the initial Remarketing Agents to perform under the Remarketing Agreement, and/or
enter into new remarketing agreements with other or additional remarketing agents, who shall
function as the Remarketing Agents with respect to the Reset Date. On each Remarketing Terms
Determination Date, the Trust, the Administrator and the Remarketing Agents will enter into a
Remarketing Agency Agreement for the remarketing of the Reset Rate Notes.

     (b) If the Remarketing Agents, in consultation with the Administrator, determine prior to the
Remarketing Terms Determination Date that any Currency Swap Agreements required pursuant to Section
2(c)(iii) above will not be obtainable on the related Reset Date, the Reset Rate Notes must be
denominated in U.S. Dollars during the next Reset Period.

     (c) Unless the holder of the Call Option has delivered the Call Option Notice, on or prior to
the Remarketing Terms Determination Date the Remarketing Agents will notify the Reset Rate
Noteholders whether tender is deemed mandatory or optional and, in consultation with the
Administrator, will establish the following terms for the Reset Rate Notes to be applicable during
the immediately following Reset Period:

     (i) the expected weighted average life of the Reset Rate Notes, based on prepayment and
other assumptions customary for comparable securities;

     (ii) the name and contact information of the Remarketing Agents;

     (iii) the next Reset Date and length of such Reset Period;

     (iv) the interest rate mode (i.e., fixed rate or floating rate);

     (v) the currency denomination;

     (vi) the applicable minimum denomination and additional increments for the Reset Rate
Notes;

     (vii) if in Foreign Exchange Mode, the identities of the Eligible Swap Counterparties
from which bids will be solicited;

     (viii) if in Foreign Exchange Mode, the applicable Distribution Dates on which interest
and principal will be paid to the Reset Rate Noteholders, if other than quarterly;

     (ix) whether the class will be structured to amortize periodically or to receive a
payment of principal only at the end of the related Reset Period;

Appendix A-2-3

 

     (x) if in floating rate mode, the applicable Index;

     (xi) if in floating rate mode, the interval between Interest Rate Change Dates;

     (xii) if in floating rate mode, the applicable Interest Rate Determination Date;

     (xiii) if in fixed rate mode, the applicable fixed rate pricing benchmark;

     (xiv) if in fixed rate mode, the identities of the Eligible Swap Counterparties from
which bids will be solicited;

     (xv) if in floating rate mode, whether there will be a Swap Agreement and, if so, the
identities of the Eligible Swap Counterparties from which bids will be solicited;

     (xvi) the applicable Day Count Basis;

     (xvii) the related All Hold Rate, if applicable;

     (xviii) if Definitive Notes are to be issued, the procedures for delivery and exchange
of Definitive Notes and for dealing with lost or mutilated notes; and

     (xix) any other relevant terms incidental to the foregoing (other than the related
Spread or fixed rate of interest, as applicable) for the next Reset Period;

provided that any interest rate mode, other than a floating rate based on LIBOR or a
Commercial Paper Rate, will require that the Rating Agency Condition be satisfied prior to the
delivery of the related Remarketing Terms Notice.

     (d) The Remarketing Agents will communicate all of the information established in Section 4(c)
above in the Remarketing Terms Notice required to be given in writing (including facsimile or other
electronic transmission if in accordance with each Clearing Agency’s standard procedures) to each
Clearing Agency (and the Luxembourg Stock Exchange if the Reset Rate Notes are then listed on such
exchange) or to the Reset Rate Noteholders if Definitive Notes have been issued, as applicable, the
Indenture Trustee and the Rating Agencies on the Remarketing Terms Determination Date.

     (e) In addition, prior to the Remarketing Terms Determination Date, the Administrator shall
cause the Schedule Replacement Order with respect to the Reset Rate Notes to be delivered to the
Indenture Trustee, the Clearing Agencies and, if the Reset Rate Notes are then listed on the
Luxembourg Stock Exchange, the Luxembourg Listing Agent. Furthermore, the Administrator shall also
prepare, on behalf of the Trust, a preliminary Remarketing Prospectus, dated as of the Remarketing
Terms Determination Date, setting forth the relevant terms for the next Reset Period in addition to
current information regarding the pool of Trust Student Loans.

     Section 5. All Hold Rate: (a) On each Remarketing Terms Determination Date for the
Reset Rate Notes which are denominated in U.S. Dollars during both the then-current Reset Period
and the immediately following Reset Period, the Remarketing Agents, in consultation

Appendix A-2-4

 

with the Administrator, will establish the All Hold Rate for the Reset Rate Notes. When the
Reset Rate Notes are either in Foreign Exchange Mode during the then-current Reset Period or will
be reset into Foreign Exchange Mode on the immediately following Reset Date, all Reset Rate
Noteholders will be deemed to have tendered their Notes on the related Reset Date, regardless of
any desire by such Reset Rate Noteholders to retain their ownership thereof, and no All Hold Rate
will be applicable.

     (b) The All Hold Rate will only be applicable if 100% of the Reset Rate Noteholders deliver
timely Hold Notices wherein they elect to hold their Reset Rate Notes for the next related Reset
Period. If applicable, the related interest rate for the Reset Rate Notes during the immediately
following Reset Period will not be less than the All Hold Rate. If the rate of interest using the
Spread or fixed rate of interest established on the Spread Determination Date is higher than the
All Hold Rate, then upon a successful remarketing of the Reset Rate Notes, all Reset Rate
Noteholders who delivered a Hold Notice agreeing to be subject to the All Hold Rate instead will be
entitled to the higher rate of interest during the immediately following Reset Period.

     Section 6. Failed Remarketing: (a) With respect to each Reset Date for which the
holder of the Call Option does not deliver the Call Option Notice, a Failed Remarketing will be
declared by the Remarketing Agents and the provisions of this Section 6 will apply if any of the
conditions set forth in the definition of “Failed Remarketing” are applicable. In order to prevent
the declaration of a Failed Remarketing, the Remarketing Agents will have the option, but not the
obligation, to purchase the Reset Rate Notes tendered that they are not otherwise able to remarket
or with respect to which a committed purchaser defaults on their purchase obligations.

     (b) At any time a Failed Remarketing is declared: (i) the Reset Rate Notes will be retained by
the Reset Rate Noteholders on the related Reset Date, regardless of any deemed mandatory or
voluntary tenders made to the Remarketing Agents, (ii) the Failed Remarketing Rate for the Reset
Rate Notes will apply for the related Reset Period and (iii) a Reset Period of three months will be
established. In addition, if the Reset Rate Notes are in Foreign Exchange Mode at the time a
Failed Remarketing is declared, the provisions of Sections 10(a)(i) and (ii) shall also apply.

     (c) If there is a Failed Remarketing of the Reset Rate Notes, the Reset Rate Noteholders shall
not be entitled to exercise any remedies as a result of the failure of their Reset Rate Notes to be
remarketed on the related Reset Date.

     Section 7. Call Option: (a) With respect to each Reset Date, the Depositor, as the
initial holder of the Excess Distribution Certificate, is hereby granted the Call Option for the
purchase of not less than 100% of the Reset Rate Notes, exercisable at a price equal to 100% of the
Outstanding Amount of the Reset Rate Notes, less all amounts distributed to the Reset Rate
Noteholders as a payment of principal with respect to the related Distribution Date(s), plus any
accrued and unpaid interest not paid by the Trust with respect to the applicable Reset Date.

     (b) The Depositor, as the initial holder of the Excess Distribution Certificate, effective as
of the Closing Date, hereby transfers all of its right, title and interest in and to the Call
Option to SLM Education Credit Finance Corporation and then SLM Education Credit

Appendix A-2-5

 

Finance Corporation shall transfer all of its right, title and interest therein to SLM
Investment Corporation, which upon receipt thereof will dividend all of its right, title and
interest in and to the Call Option to SLM Corporation, and in acceptance of such transfer SLM
Corporation also hereby agrees to abide by all terms and conditions hereunder with respect to the
Call Option as set forth in these Reset Rate Note Procedures.

     (c) SLM Corporation may further transfer ownership of the Call Option at any time to one of
its Affiliates; provided that such permitted transferee has at no time in the past owned,
and is not obligated under either the Purchase Agreements or the Sale Agreement to transfer, an
interest in any of the Trust Student Loans.

     (d) The Call Option may be exercised with respect to the Reset Rate Notes at any time on or
prior to the determination of the related Spread or fixed rate or the declaration of a Failed
Remarketing, as applicable, on the related Spread Determination Date by delivery of a Call Option
Notice; provided that the Call Option may not be exercised before the day following the
last Distribution Date immediately preceding the next applicable Reset Date. In addition, for so
long as the Reset Rate Notes are listed on the Luxembourg Stock Exchange, the holder of the Call
Option shall cause a notice of the exercise of the Call Option to be published in a leading
newspaper having general circulation in Luxembourg (which is expected to be d’Wort). Once written
notice of the exercise of the Call Option is given, such exercise may not be rescinded.

     (e) All amounts due and owing to the Reset Rate Noteholders shall be remitted on or before the
related Reset Date by the holder of the Call Option in accordance with the standard procedures
established by the Clearing Agencies for transfer of securities to ensure timely payment of
principal to the Reset Rate Noteholders on the related Reset Date.

     (f) In the event that the Call Option is exercised with respect to the Reset Rate Notes when
they are in Foreign Exchange Mode, the holder of the Call Option shall deliver the U.S. Dollar
Equivalent Principal Amount remaining after all payments of principal are made with respect to the
related Distribution Date, and interest (if applicable) owing to the Reset Rate Noteholders to the
Remarketing Agents for delivery to the Swap Counterparties to the related Currency Swap Agreements,
who shall exchange such amount into the applicable currency for delivery to the Reset Rate
Noteholders; provided, however, that if there is no such Currency Swap Agreement
then in effect, the holder of the Call Option shall remit all amounts due and owing to the
Remarketing Agents for delivery to the Reset Rate Noteholders in the applicable currency on or
before the Reset Date in accordance with the standard procedures established by the related
Clearing Agencies for transfer of securities to ensure timely payment of principal to the Reset
Rate Noteholders on the related Reset Date.

     (g) If the Call Option is exercised with respect to the Reset Rate Notes, (i) the interest
rate on the Reset Rate Notes will be the Call Rate, (ii) the Reset Rate Notes will be denominated
in U.S. Dollars and (iii) a Reset Period of three months will be established. At the end of such
three month Reset Period, the holder of the Call Option may either remarket the Reset Rate Notes
pursuant to the remarketing procedures set forth herein and in the Remarketing Agreement, or retain
the Reset Rate Notes for one or more successive three-month Reset Periods at the then-current Call
Rate. In the event the holder of the Call Option chooses to remarket the Reset Rate Notes, such
holder shall be solely responsible for all costs and expenses relating to

Appendix A-2-6

 

the preparation of any new offering document and any other related costs and expenses
associated with such remarketing, other than the fees of the Remarketing Agents, as more fully set
forth in Section 3 of the Remarketing Agreement.

     (h) Other than in connection with the exercise of the Call Option, neither SLM Corporation,
SLM ECFC, VG Funding, the Trust or any of their Affiliates shall have the ability to purchase any
Reset Rate Notes tendered to the Remarketing Agents.

     Section 8. Hold Notice: For the Reset Rate Notes when they are denominated in U.S.
Dollars during both the then-current Reset Period and the immediately following Reset Period, the
Reset Rate Noteholders will have the option to deliver a Hold Notice to any Remarketing Agent
setting forth their desire to hold their Reset Rate Notes for the next Reset Period at a rate of
interest not less than the All Hold Rate and on the terms set forth in the related Remarketing
Terms Notice, at any time on or after the Remarketing Terms Determination Date until the Notice
Date. Such Hold Notice may be delivered as an oral statement to a Remarketing Agent, if
subsequently confirmed in writing within 24 hours, which confirmation may be in the form of an
e-mail if timely received by the Remarketing Agent. If a Reset Rate Noteholder does not timely
deliver a Hold Notice to a Remarketing Agent (such Hold Notice not to be considered delivered until
actually received by such Remarketing Agent), that Reset Rate Noteholder will be deemed to have
tendered for remarketing 100% of the Outstanding Amount of its Reset Rate Notes. Any duly
delivered Hold Notice will be irrevocable, but will be subject to a mandatory tender of the Reset
Rate Notes pursuant to any exercise of the Call Option. All of the Reset Rate Notes, whether
tendered or not, will bear interest during any related Reset Period on the same terms.

     Section 9. Spread Determination Date: (a) On each Spread Determination Date, unless
a Failed Remarketing has been declared or the holder of the Call Option has delivered the Call
Option Notice, the Administrator, the Trust and the Remarketing Agents will enter into a
Supplemental Remarketing Agency Agreement.

     (b) If pursuant to the Remarketing Terms Notice, the Remarketing Agents, in consultation with
the Administrator, have determined that the Reset Rate Notes are to be reset to bear a fixed rate
of interest, then the applicable fixed rate of interest for the corresponding Reset Period will be
determined on the Spread Determination Date by adding (i) the applicable spread as determined by
the Remarketing Agents on the Spread Determination Date and (ii) the yield to maturity on the
Spread Determination Date of the applicable fixed rate pricing benchmark, selected by the
Remarketing Agents, as having an expected weighted average life based on a scheduled maturity at
the next Reset Date, which would be used in accordance with customary financial practice in pricing
new issues of asset-backed securities of comparable average life; provided that such fixed
rate of interest will in no event be lower than the related All Hold Rate, if applicable. The
Remarketing Agents shall determine the applicable fixed rate of interest for the Reset Rate Notes
(by reference to the applicable fixed rate pricing benchmark plus or minus the spread determined on
the Remarketing Terms Determination Date) on each Spread Determination Date irrespective of whether
no remarketing will occur as the result of the application of the All Hold Rate, if applicable. In
addition, on the related Spread Determination Date, the Remarketing Agents, in consultation with
the Administrator, shall determine the Supplemental Interest Account Deposit Amount, if any, for
the Reset Rate Notes.

Appendix A-2-7

 

     (c) If pursuant to the Remarketing Terms Notice, the Remarketing Agents, in consultation with
the Administrator, have determined that the Reset Rate Notes are to be reset to bear a floating
rate of interest, then, on the related Spread Determination Date, the Remarketing Agents will
establish the applicable Spread to be added or subtracted from the applicable Index;
provided that such floating rate of interest will in no event be lower than the related All
Hold Rate, if applicable. In addition, on the related Spread Determination Date, the Remarketing
Agents, in consultation with the Administrator, shall determine the Supplemental Interest Account
Deposit Amount, if any, for the Reset Rate Notes.

     (d) If required pursuant to Section 2(c) above, on the related Reset Date the Trust shall
enter into either (i) one or more Currency Swap Agreements, if the Reset Rate Notes are to be reset
in Foreign Exchange Mode, or (ii) one or more Interest Rate Swap Agreements if the Reset Rate Notes
are to be reset in U.S. Dollars and to bear interest at a fixed rate or at a floating rate other
than one based on LIBOR or a Commercial Paper Rate, with an Eligible Swap Counterparty.

     (e) On or immediately following the Spread Determination Date, the Remarketing Agents will
communicate in writing (including facsimile or other electronic transmission if in accordance with
each Clearing Agency’s standard procedures) the contents of the Spread Determination Notice to each
Clearing Agency (and the Luxembourg Stock Exchange if the Reset Rate Notes are then listed on such
exchange) or the Reset Rate Noteholders if Definitive Notes have been issued, as applicable, with
instructions to distribute such notices to its related participants, or to the Reset Rate
Noteholders, as applicable, the Indenture Trustee and the Rating Agencies. The Spread
Determination Date Notice will contain: (i) the determined Spread or fixed rate of interest, as the
case may be, or, if applicable, a statement that the All Hold Rate or the Failed Remarketing Rate
will be in effect for the immediately following Reset Period, (ii) any applicable currency exchange
rate, (iii) the identity of any selected Swap Counterparty or Counterparties, if applicable, (iv)
if applicable, the floating rate (or rates) of interest to be due to each selected Swap
Counterparty with respect to each Distribution Date during the immediately following Reset Period
and (v) any other information that the Administrator or the Remarketing Agents deem applicable.
Furthermore, for the Reset Rate Notes when they are to be reset in Foreign Exchange Mode, the
currency exchange rate, the Extension Rate due to each related Currency Swap Counterparty and the
Failed Remarketing Rate for the immediately following Reset Period will be determined pursuant to
the terms of the related Currency Swap Agreement and contained in the Spread Determination Notice.
In addition, if required for the immediately following Reset Period, on or before the related
Spread Determination Date the Administrator will arrange for new or additional securities
identification codes to be obtained as required. Furthermore, the Administrator, on behalf of the
Trust, will prepare the final Remarketing Prospectus, dated the Spread Determination Date, setting
forth the terms of the Reset Rate Notes for the upcoming Reset Period.

     Section 10. Swap Agreements:

     (a) If the Reset Rate Notes are to be reset in Foreign Exchange Mode, on the related Reset
Date, the Administrator will enter into (not in its individual capacity, but solely as
Administrator on behalf of the Trust) or will instruct the Eligible Lender Trustee to enter into

Appendix A-2-8

 

(not in its individual capacity, but solely as Eligible Lender Trustee) one or more Currency
Swap Agreements for the related Reset Period.

     (i) Each Currency Swap Counterparty which is party to a related Currency Swap Agreement
will be entitled to receive: (A) on the effective date of such Currency Swap Agreement, all
secondary market trade proceeds received from purchasers of the Reset Rate Notes in the
applicable currency, (B) with respect to each applicable Distribution Date, (x) an interest
rate of Three-Month LIBOR, plus or minus a spread, as determined from the bidding process
described in Section 10(d) below (other than as may be interpolated for an initial or final
calculation period under that Currency Swap Agreement), multiplied by the U.S. Dollar
Equivalent Principal Amount of the Reset Rate Notes, and multiplied by a fraction determined
by the number of days in the applicable Accrual Period and the applicable Day Count Basis
and (y) all payments of principal in U.S. Dollars that are allocated to the Reset Rate
Notes; provided that if the Reset Rate Notes are then structured not to receive a
payment of principal until the end of the related Reset Period, all principal payments
allocated to the Reset Rate Notes on any Distribution Date will be deposited into the
Accumulation Account and paid to the related Swap Counterparties on or about the next Reset
Date as set forth in the related Currency Swap Agreements (including all sums required to be
deposited therein on the Reset Date), but excluding all Investment Earnings thereon, and (C)
on a Reset Date corresponding to a successful remarketing or an exercise of the Call Option,
all U.S. Dollar currency equivalent of all secondary market trade proceeds or proceeds from
the exercise of the Call Option, as applicable, received from the Remarketing Agents
directly from purchasers of the Reset Rate Notes (if in U.S. Dollars), from the new Currency
Swap Counterparty or Counterparties, as applicable (if in non-U.S. Dollar currency) or from
the holder of the Call Option, as applicable.

     (ii) In addition, each related Currency Swap Counterparty will be obligated to pay to
the Trust (for payment to the Reset Rate Noteholders, if applicable): (A) on the effective
date of such Currency Swap Agreement, the U.S. Dollar equivalent of all secondary market
trade proceeds received from purchasers of the Reset Rate Notes, (B) with respect to each
applicable Distribution Date, (x) their applicable percentage of the applicable rate of
interest on the Reset Rate Notes multiplied by the U.S. Dollar Equivalent Principal Amount
of the Reset Rate Notes and multiplied by a fraction determined by the number of days in the
applicable Accrual Period and the applicable Day Count Basis, and (y) the applicable
non-U.S. Dollar currency equivalent of the U.S. Dollars such Swap Counterparty concurrently
receives from the Trust as a payment of principal allocated to the Reset Rate Noteholders
(including, on the related Maturity Date for the Reset Rate Notes, if a Currency Swap
Agreement is then in effect, the remaining Outstanding Amount of the Reset Rate Notes) but
only to the extent that the required U.S. Dollar Equivalent Principal Amount is received
from the Trust on such date, at an exchange rate to be set on the effective date of and set
forth in the related Currency Swap Agreement, (C) on the second Business Day following a
Distribution Date that is also a Reset Date (other than for any Reset Period following a
Reset Date upon which a Failed Remarketing has occurred, up to and including the Reset Date
resulting in a successful remarketing or an exercise of the Call Option) their applicable
percentage of interest at the interest rate from and including the related Reset Date to,
but excluding, the second

Appendix A-2-9

 

Business Day following such Reset Date, and (D) on the Reset Date corresponding to a
successful remarketing or an exercise of the Call Option, the applicable currency equivalent
of all U.S. Dollar secondary market trade proceeds received by the Trust from the purchasers
of the Reset Rate Notes or proceeds received by the Trust from the exercise of the Call
Option, as applicable, at an exchange rate to be set on the effective date of and set forth
in the related Currency Swap Agreement. For any Reset Period following a Reset Date upon
which a Failed Remarketing has occurred, up to any including the Reset Date resulting in a
successful remarketing or an exercise of the Call Option for the Reset Rate Notes, payments
of interest and principal to the Reset Rate Noteholders will be made on the second Business
Day following the related Reset Date without the payment of any additional interest.

(b) [Reserved.]

       (c) On each Reset Date if the Reset Rate Notes are to be reset in U.S. Dollars, and a Swap
Agreement is required pursuant to Sections 2(c) and 9(d) above, then the Administrator will enter
into (not in its individual capacity, but solely as Administrator on behalf of the Trust) or will
instruct the Eligible Lender Trustee to enter into (not in its individual capacity, but solely as
Eligible Lender Trustee), one or more Interest Rate Swap Agreements for the next Reset Period to
facilitate the Trust’s ability to pay applicable interest at the related interest rate.

     (i) Each Swap Counterparty which is party to a related Interest Rate Swap Agreement
will be entitled to receive on each Distribution Date an interest rate of Three-Month LIBOR,
plus or minus a spread, as determined from the bidding process described in Section 10(d)
below, multiplied by the Outstanding Amount of the Reset Rate Notes and multiplied by a
fraction determined by the number of days in the applicable Accrual Period and the
applicable Day Count Basis.

     (ii) In addition, each related Swap Counterparty which is a party to a related Interest
Rate Swap Agreement will be obligated to pay to the Trust on each Distribution Date, the
applicable rate of interest on the Reset Rate Notes multiplied by the Outstanding Amount of
the Reset Rate Notes and multiplied by a fraction determined by the number of days in the
applicable Accrual Period and the applicable Day Count Basis.

     (d) Other than with respect to the Initial Interest Rate Swap Agreement, the Remarketing
Agents, in consultation with the Administrator, in determining the Swap Counterparty to each
required Swap Agreement, will solicit bids from at least three Eligible Swap Counterparties and
will select the lowest of these bids to provide the interest rate swap and/or currency exchange
swap(s). If the lowest bidder specifies a notional amount that is less than the Outstanding Amount
of the Reset Rate Notes, the Remarketing Agents, in consultation with the Administrator, may select
more than one Eligible Swap Counterparty, but only to the extent that such additional Eligible Swap
Counterparties have provided the next lowest received bid or bids, and enter into more than one
Swap Agreement that result in the Rating Agency Condition being satisfied.

     (e) Other than with respect to the Initial Interest Rate Swap Agreement, it is a condition
precedent to the entering into of any Swap Agreement and the setting of the amount to

Appendix A-2-10

 

be paid to the related Swap Counterparty that the Rating Agency Condition is satisfied. No
Swap Agreement will be entered into or caused to be entered into by the Trust, the Administrator on
its behalf or the Remarketing Agents, for any Reset Period where either the Call Option has been
exercised or a Failed Remarketing has been declared.

     (f) Each Currency Swap Agreement will terminate at the earliest to occur of (i) the next
succeeding Reset Date for which there is a successful remarketing, (ii) the Reset Date for which
the Call Option is exercised, (iii) the Distribution Date on which the Outstanding Amount of the
Reset Rate Notes is reduced to zero (including as the result of the optional purchase of the
remaining Trust Student Loans by the Servicer or an auction of the Trust Student Loans by the
Indenture Trustee) or (iv) the Maturity Date of the Reset Rate Notes. No Currency Swap Agreement
will terminate solely due to the declaration of a Failed Remarketing. Each Interest Rate Swap
Agreement will terminate on the earliest to occur of the next Reset Date, or the occurrence of an
event specified in clause (iii) or (iv) above.

     (g) With respect to each Currency Swap Agreement, and in the event that a Failed Remarketing
is declared, the rate of interest due to each related Currency Swap Counterparty from the Trust on
each Distribution Date will be increased to the Extension Rate and the rate due to the Trust from
each related Currency Swap Counterparty will change to equal the Failed Remarketing Rate.

     Section 11. Accumulation Account; Supplemental Interest Account: (a) If, on any
Distribution Date, principal would be payable to the Reset Rate Notes when they are then structured
not to receive a payment of principal until the end of the Reset Period, that principal (subject to
sufficient Available Funds therefor) will be allocated to the Reset Rate Notes and deposited into
the Accumulation Account, where it will remain until the next Reset Date (except that if the Reset
Rate Notes are in Foreign Exchange Mode, principal will be paid according to the provisions of
Sections 10(a)(i) and (a)(ii) above), unless an Event of Default under the Indenture or a sale of
the Trust Estate pursuant to Section 6.1 of the Administration Agreement has occurred (in which
case the Indenture Trustee will distribute all sums on deposit therein (exclusive of Investment
Earnings) to the Reset Rate Noteholders in accordance with the provisions of Section 5.4(b) of the
Indenture or Section 6.1 of the Administration Agreement, as applicable).

     (b) On each Reset Date, when the Reset Rate Notes were structured during the preceding Reset
Period not to receive a payment of principal until the end of the related Reset Period, all sums,
if any, then on deposit in the Accumulation Account, including any allocation of principal made on
the same date, but less any Investment Earnings, will be distributed by the Indenture Trustee, at
the direction of the Administrator, as set forth in Section 2.8 of the Administration Agreement,
(x) to the holders of the Reset Rate Notes, as of the related Record Date, or (y) if the Reset Rate
Notes are then in Foreign Exchange Mode (including during the related initial Reset Period), to the
related Currency Swap Counterparty or Counterparties for the benefit of the Reset Rate Noteholders
as of the Record Date pursuant to the provisions of Section 10(a)(i) and (a)(ii) above, in
reduction of principal of the Reset Rate Notes; provided that in the event on any
Distribution Date the amount on deposit in the Accumulation Account (excluding any Investment
Earnings) would equal the Outstanding Amount of the Reset Rate Notes, no additional amounts will be
deposited into the Accumulation Account and all amounts therein,

Appendix A-2-11

 

less any Investment Earnings, will be distributed by the Indenture Trustee, at the direction
of the Administrator, as set forth in Section 2.8 of the Administration Agreement, on the next
related Reset Date to the Reset Rate Noteholders or the related Currency Swap Counterparty or
Counterparties (as applicable), and on such Reset Date the Reset Rate Notes will no longer be
Outstanding. Amounts on deposit in the Accumulation Account (exclusive of Investment Earnings) may
be used only to pay principal on the Reset Rate Notes (or to the related Currency Swap Counterparty
or Counterparties) and for no other purpose. On each Distribution Date, all Investment Earnings on
deposit in the Accumulation Account will be withdrawn by the Indenture Trustee, at the direction of
the Administrator and deposited into the Collection Account.

     (c) The Indenture Trustee, subject to sufficient available funds therefor, at the direction of
the Administrator and pursuant to Section 2.10(d)(ii) of the Administration Agreement, will deposit
into a Supplemental Interest Account, the related Supplemental Interest Account Deposit Amount. On
each Distribution Date, all sums (which shall include Investment Earnings) on deposit in each
Supplemental Interest Account will be withdrawn by the Indenture Trustee, at the direction of the
Administrator, as set forth in Section 2.10(d)(iii) of the Administration Agreement, and deposited
into the Collection Account.

     Section 12. Remarketing Agents; Remarketing Fee Account: (a) The initial Remarketing
Agents, appointed pursuant to the terms of the Remarketing Agreement, are, initially, each of
Deutsche Bank Securities Inc. and Merrill Lynch, Pierce, Fenner & Smith Incorporated. The terms
and conditions of the Remarketing Agreement will govern the duties and obligations of the
Remarketing Agents. The Administrator, the Trust and the Remarketing Agents will enter into on
each (A) related Remarketing Terms Determination Date and a related Remarketing Agency Agreement,
in form and substance substantially the same as Appendix B to the Remarketing Agreement, unless (i)
a Failed Remarketing is declared, or (ii) the holder of the Call Option has delivered the Call
Option Notice on or prior to such date; and (B) related Spread Determination Date, a Supplemental
Remarketing Agency Agreement, in form and substance substantially the same as Appendix C to the
Remarketing Agreement, unless (i) a Failed Remarketing is declared, (ii) the holder of the Call
Option has delivered the Call Option Notice on or prior to such date, or (iii) if applicable, 100%
of the Reset Rate Noteholders have timely delivered a Hold Notice and the All Hold Rate will apply
for the next related Reset Period.

     (b) [Reserved.]

     (c) Excluding when a Remarketing Agent has received a timely delivered Hold Notice for the
Reset Rate Notes, if applicable (or if the holder of the Call Option has delivered the Call Option
Notice), on the Reset Date that commences each Reset Period, the Reset Rate Notes will be
automatically tendered, or deemed tendered, to the relevant Remarketing Agent for remarketing by
such Remarketing Agent on the Reset Date at 100% of its Outstanding Amount. If the Reset Rate
Notes are held in book-entry form, 100% of the Outstanding Amount will be paid by the Remarketing
Agents in accordance with the standard procedures of the applicable Clearing Agencies.

     (d) The Remarketing Agents will attempt, on a reasonable efforts basis and in accordance with
the terms and conditions of the Remarketing Agreement and the related

Appendix A-2-12

 

Remarketing Agency Agreement, to remarket the tendered Reset Rate Notes of the applicable
class at a price equal to 100% of the Outstanding Amount of the Reset Rate Notes so tendered.

     (e) Purchasers of the Reset Rate Notes will be credited with their positions on the applicable
Reset Date with respect to positions held through DTC or on the next Business Day with respect to
positions held through the European Clearing Systems. No payment delay to existing Reset Rate
Noteholders holding U.S. Dollar-denominated Reset Rate Notes through DTC will occur on the related
Reset Date when the Reset Rate Notes are denominated in U.S. Dollars during the immediately
following Reset Period.

     (f) Each of the Remarketing Agents, in its individual or any other capacity, may buy, sell,
hold and deal in the Reset Rate Notes, including, but not limited to, purchasing any tendered Reset
Rate Notes as part of the remarketing process. Any Remarketing Agent that owns a Reset Rate Note
may exercise any vote or join in any action which any beneficial owner of the Reset Rate Notes may
be entitled to exercise or take with like effect as if it did not act in any capacity under the
Remarketing Agreement or Remarketing Agency Agreement. Any Remarketing Agent, in its individual
capacity, either as principal or agent, may also engage in or have an interest in any financial or
other transaction with the Trust, the Depositor, the Servicer, the Indenture Trustee (in its
individual capacity), the Eligible Lender Trustee (in its individual capacity) or the Administrator
as freely as if it did not act in any capacity under the Remarketing Agreement or any Remarketing
Agency Agreement. No Reset Rate Noteholder or beneficial owner of the Reset Rate Notes will have
any rights or claims against any Remarketing Agent as a result of such Remarketing Agent’s not
purchasing any tendered Reset Rate Notes, which results in the declaration of a Failed Remarketing.

     (g) Each of the Remarketing Agents will be entitled to receive a fee in connection with their
services rendered for each successful remarketing of the Reset Rate Notes in the amount set forth
in the Remarketing Agreement and the related Remarketing Agency Agreement. Subject to the terms
and conditions set forth in the Remarketing Agreement, the Administrator, in its sole discretion,
may change the Remarketing Agents for the Reset Rate Notes for any Reset Period at any time on or
before the related Remarketing Terms Determination Date. In addition, the Administrator will
appoint one or more additional Remarketing Agents, if necessary, for a Reset Date when the Reset
Rate Notes will be remarketed in a non-U.S. Dollar currency. Furthermore, a Remarketing Agent may
resign at any time; provided that no resignation may become effective on a date that is
later than 15 Business Days prior to a Remarketing Terms Determination Date.

     (h) In accordance with Section 2.3(i) of the Administration Agreement, on the Closing Date,
the Trust will establish the Remarketing Fee Account as an asset of the Trust in the name of the
Indenture Trustee, for the benefit of the Remarketing Agents and the Reset Rate Noteholders. The
fees associated with each successful remarketing will be payable directly to the Remarketing Agents
from amounts on deposit from time to time in the Remarketing Fee Account. On each applicable
Distribution Date, Available Funds will be deposited into the Remarketing Fee Account, in the
priority set forth in Section 2.8(c) of the Administration Agreement, in an amount up to the
Quarterly Funding Amount; provided that if the amount on deposit in the Remarketing Fee
Account, after the payment of any remarketing fees therefrom, exceeds the sum of the Reset Period
Target Amount for the Reset Rate Notes, such excess will

Appendix A-2-13

 

be withdrawn on the related Distribution Date, deposited into the Collection Account and
included in Available Funds for that Distribution Date. All Investment Earnings on deposit in the
Remarketing Fee Account will be withdrawn on the next Distribution Date, deposited into the
Collection Account and included in Available Funds for that Distribution Date. In the event that
the fees owed to any Remarketing Agent on a Reset Date exceeds the amount then on deposit in the
Remarketing Fee Account, such shortfall shall be paid from Available Funds on future Distribution
Dates in the priority set forth in Section 2.8(n) of the Administration Agreement. The Trust shall
also be responsible for certain remarketing costs and expenses to the extent set forth in Section 3
of the Remarketing Agreement, which shall be paid on each Distribution Date, to the extent of
Available Funds, at the priority set forth in Section 2.8(o) of the Administration Agreement.

     Section 13. Eligible Lender Trustee: The Eligible Lender Trustee is hereby authorized
and directed to execute and deliver, not in its individual capacity, but solely as Eligible Lender
Trustee on behalf of the Trust, the Remarketing Agreement, any Swap Agreements (including the
Initial Interest Rate Swap Agreement) and any required supplement, amendment or replacement
thereof, and all Remarketing Agency Agreements and Supplemental Remarketing Agency Agreements as
the Administrator, in writing and from time to time, shall instruct the Eligible Lender Trustee to
execute. The Eligible Lender Trustee shall not be liable to any party, any third party or any
Noteholder for any such actions taken at the written instruction of the Administrator.
Notwithstanding the foregoing, in the event that the Eligible Lender Trustee declines or fails to
execute or deliver any such document, instrument, certificate or agreement as instructed by the
Administrator, the Administrator is hereby authorized, in its sole discretion, to execute and
deliver, not in its individual capacity but solely as Administrator on behalf of the Trust, all
such required documents, instruments, certificates and agreements. The foregoing authorization
shall represent a limited power of attorney granted by the Trust to the Administrator to act on its
behalf, and the Administrator shall not be liable to any party, any third party or any Noteholder
for any such actions taken in good faith and in accordance with these Reset Rate Note Procedures.

Appendix A-2-14

 

SCHEDULE A

Schedule of Trust Student Loans

[See Schedule A to the Bill of Sale

(Attachment C to the Sale Agreement)]

Schedule A-1

 

SCHEDULE B

Location of Trust Student Loan Files

[See Attachment B to the Servicing Agreement)]

Schedule B-1

 

EXHIBIT A

Forms of Notes

Exhibit A-1

 

EXHIBIT B

Form of Note Depository Agreement for U.S. Dollar Denominated Notes

Exhibit B-1

 

EXHIBIT C

Form of Note Depository Agreement for Notes Denominated in a

Currency Other than U.S. Dollars

Exhibit C-1exv10w23w1

 

Exhibit 10.23.1

Hyatt Dulles

Herndon, Fairfax County, Virginia

____________________

PURCHASE AND SALE AGREEMENT

BETWEEN

Dulles Airport Hotel, LLC,

a Delaware limited liability company

AS SELLER

AND

Ashford Hospitality Limited Partnership,

a Delaware limited partnership

AS PURCHASER

August 23, 2005

 

 

TABLE OF CONTENTS

	 	 	 	 	 	 	 
	 
	 	 	 	 	Page	 
	ARTICLE I
	 	PURCHASE AND SALE	 	 	1	 
	1.1
	 	Agreement of Purchase and Sale	 	 	1	 
	1.2
	 	Property Defined	 	 	2	 
	1.3
	 	Permitted Exceptions	 	 	2	 
	1.4
	 	Purchase Price	 	 	3	 
	1.5
	 	Payment of Purchase Price	 	 	3	 
	1.6
	 	Earnest Money	 	 	3	 
	1.7
	 	Delivery to Title Company	 	 	3	 
	ARTICLE II
	 	TITLE AND SURVEY	 	 	4	 
	2.1
	 	Title Examination; Commitment for Title Insurance	 	 	4	 
	2.2
	 	Survey	 	 	4	 
	2.3
	 	Title Objections; Cure of Title Objections	 	 	4	 
	2.4
	 	Conveyance of Title	 	 	5	 
	2.5
	 	Pre-Closing “Gap” Title Defects	 	 	5	 
	ARTICLE III
	 	INSPECTION PERIOD; CERTAIN AGREEMENTS	 	 	5	 
	3.1
	 	Right of Inspection	 	 	5	 
	3.2
	 	Right of Termination	 	 	7	 
	3.3
	 	Hotel Management Agreement	 	 	7	 
	3.4
	 	Association Estoppel	 	 	8	 
	3.5
	 	Parking Easement	 	 	8	 
	ARTICLE IV
	 	CLOSING	 	 	9	 
	4.1
	 	Time and Place	 	 	9	 
	4.2
	 	Seller’s Obligations at Closing	 	 	9	 
	4.3
	 	Purchaser’s Obligations at Closing	 	 	11	 
	4.4
	 	Title Company’s Obligations at Closing	 	 	11	 
	4.5
	 	Apportionments	 	 	12	 
	4.6
	 	Unopened Food and Beverage Inventory	 	 	14	 
	4.7
	 	Accounts Receivable and Accounts Payable	 	 	14	 
	4.8
	 	House Banks; Reserve	 	 	15	 
	4.9
	 	Reservation and Other Deposits	 	 	15	 
	4.10
	 	Safes and Baggage	 	 	15	 
	4.11
	 	Employees	 	 	16	 

i

 

TABLE OF CONTENTS

(continued)

	 	 	 	 	 	 	 
	 
	 	 	 	 	Page	 
	4.12
	 	Property Not Included In Sale	 	 	16	 
	4.13
	 	Settlement of Apportionments	 	 	16	 
	4.14
	 	Closing Costs	 	 	17	 
	4.15
	 	Utility Services and Deposits	 	 	17	 
	4.16
	 	Post-Closing Collections and Adjustments	 	 	17	 
	4.17
	 	Closing Statement	 	 	18	 
	4.18
	 	Conditions Precedent to Obligation of Purchaser	 	 	18	 
	4.19
	 	Conditions Precedent to Obligation of Seller	 	 	18	 
	ARTICLE V
	 	REPRESENTATIONS, WARRANTIES AND COVENANTS	 	 	19	 
	5.1
	 	Representations and Warranties of Seller	 	 	19	 
	5.2
	 	Knowledge Defined	 	 	21	 
	5.3
	 	Survival of Seller’s Representations and Warranties	 	 	21	 
	5.4
	 	Covenants of Seller	 	 	22	 
	5.5
	 	Representations and Warranties of Purchaser	 	 	23	 
	5.6
	 	Survival of Purchaser’s Representations and Warranties	 	 	24	 
	5.7
	 	Covenants of Purchaser	 	 	24	 
	5.8
	 	Alcoholic Beverage Licenses	 	 	25	 
	5.9
	 	Renovations	 	 	25	 
	5.10
	 	Bulk Sale Requirements	 	 	26	 
	ARTICLE VI
	 	DEFAULT	 	 	26	 
	6.1
	 	Default by Purchaser	 	 	26	 
	6.2
	 	Default by Seller	 	 	26	 
	6.3
	 	Liability of Purchaser	 	 	27	 
	ARTICLE VII
	 	RISK OF LOSS	 	 	27	 
	7.1
	 	Minor Damage	 	 	27	 
	7.2
	 	Major Damage	 	 	27	 
	7.3
	 	Definition of “Major” Loss or Damage	 	 	27	 
	ARTICLE VIII
	 	COMMISSIONS	 	 	28	 
	8.1
	 	Brokerage Commissions	 	 	28	 
	ARTICLE IX
	 	DISCLAIMERS AND WAIVERS	 	 	28	 
	9.1
	 	No Reliance on Documents	 	 	28	 

ii

 

TABLE OF CONTENTS

(continued)

	 	 	 	 	 	 	 
	 
	 	 	 	 	Page	 
	9.2
	 	Disclaimers	 	 	28	 
	9.3
	 	Effect and Survival of Disclaimers	 	 	30	 
	ARTICLE X
	 	MISCELLANEOUS	 	 	30	 
	10.1
	 	Confidentiality	 	 	30	 
	10.2
	 	Public Disclosure	 	 	31	 
	10.3
	 	Discharge of Obligations	 	 	31	 
	10.4
	 	Assignment	 	 	31	 
	10.5
	 	Notices	 	 	31	 
	10.6
	 	Binding Effect	 	 	32	 
	10.7
	 	Modifications	 	 	32	 
	10.8
	 	Tenant Notification Letter	 	 	32	 
	10.9
	 	Calculation of Time Periods	 	 	32	 
	10.10
	 	Successors and Assigns	 	 	33	 
	10.11
	 	Entire Agreement	 	 	33	 
	10.12
	 	Further Assurances	 	 	33	 
	10.13
	 	Counterparts; Signatures	 	 	33	 
	10.14
	 	Severability	 	 	33	 
	10.15
	 	Applicable Law	 	 	33	 
	10.16
	 	No Third Party Beneficiary	 	 	33	 
	10.17
	 	Exhibits	 	 	33	 
	10.18
	 	Captions	 	 	34	 
	10.19
	 	Construction	 	 	35	 
	10.20
	 	Termination of Agreement	 	 	35	 
	10.21
	 	No Personal Liability of Seller	 	 	35	 
	10.22
	 	Survival	 	 	35	 
	10.23
	 	Title Company’s Agreement	 	 	35	 

iii

 

PURCHASE AND SALE AGREEMENT

     THIS PURCHASE AND SALE AGREEMENT (the “Agreement”) is made as of the 23rd day of August, 2005
(the “Effective Date”), by and between DULLES AIRPORT HOTEL, LLC, a Delaware limited liability
company (“Seller”), having an office at 1999 Avenue of the Stars, Suite 1200, Los Angeles,
California 90067 and ASHFORD HOSPITALITY LIMITED PARTNERSHIP, a Delaware limited partnership
(“Purchaser”), having an office at 14185 Dallas Parkway, Suite 1100, Dallas, Texas 75254.

ARTICLE I

PURCHASE AND SALE

     1.1 Agreement of Purchase and Sale. Subject to the terms and on the conditions set
forth in this Agreement, Seller agrees to sell and convey and Purchaser agrees to purchase the
following:

          (a) that land situated in Herndon, Fairfax County, Virginia, more particularly described on
Exhibit A, together with all and singular the rights and appurtenances pertaining to such
property, including any right, title and interest of Seller in and to adjacent streets, alleys or
rights-of-way (the property described in clause (a) of this Section 1.1 is referred to
collectively as the “Land”);

          (b) the buildings, structures, fixtures and other improvements on the Land, including, without
limitation, that certain hotel facility (“Hotel”) having approximately 316 guest rooms commonly
known as the “Hyatt Dulles Hotel”, and related facilities and improvements (collectively, the
“Improvements”);

          (c) all of Seller’s right, title and interest in and to all tangible personal property upon
the Land or within the Improvements, and other items of personal property used exclusively in
connection with the operation of the Land and the Improvements including, without limitation,
Seller’s interest as lessee with respect to any such tangible personal property (the property
described in clause (c) of this Section 1.1 is referred to collectively as the “Personal
Property”);

          (d) all of Seller’s right, title and interest in and to those certain leases (the “Leases”)
more fully described on Exhibit C (the “Lease Schedule”);

          (e) all of Seller’s right, title and interest in and to (i) all assignable contracts and
agreements (collectively, the “Operating Agreements”) listed and described on Exhibit D
(the “Operating Agreements Schedule”), relating to the upkeep, repair, maintenance or operation of
the Land, Improvements or Personal Property which will extend beyond the date of “Closing” (as such
term is defined in Section 4.1), (ii) subject to the rights of Hyatt Corporation
(“Manager”) under, and subject to the conditions set forth in the Hotel Management Agreement, as
defined and further described in Section 3.3, the Hotel Management Agreement, and (iii) all
assignable existing warranties and guaranties issued to Seller in connection with the

 

 

Improvements (including, without limitation, warranties and guaranties related to the
Renovation Work (as defined in Section 5.9 below)) or the Personal Property (the property
described in clause (e) of this Section 1.1 is referred to collectively as the
“Intangibles”);

          (f) all transferable consents, authorizations, variances or waivers, licenses, permits and
approvals from any governmental or quasi-governmental agency, department, board, commission, bureau
or other entity or instrumentality (collectively, the “Licenses”), including, without limitation,
those with respect to use, utilities, building, fire, life safety, traffic and zoning (but
excluding any alcoholic beverage licenses) (collectively, the “Approvals”) as listed on Exhibit
E;

          (g) all of Seller’s right, title and interest in and to all inventories of supplies used in
connection with the operation of the Hotel, including, without limitation, paper goods, brochures,
office supplies, unopened food and beverage inventory (to the extent the transfer of same is
permissible under applicable law and subject to the payment required under Section 4.6),
but excluding alcoholic beverages, which shall be transferred only in accordance with Section
5.8, chinaware, glassware, flatware, table linens, soap, gasoline, fuel oil, and other
operational and guest supplies currently located at the Hotel, subject to depletions, replacements
and additions in the ordinary course of operating the Hotel (provided that Seller shall maintain
its normal replenishment and replacement expenditures for such inventories until the date of
Closing), and subject to any applicable transfer and use restrictions set forth in the Operating
Agreements or the Leases (collectively, the “Inventory”);

          (h) to the extent in the possession or control of Seller, the books, records, files, guest
registers, maintenance records, rental and reservation records, and any customer or frequent guest
lists of Seller in connection with the operation and maintenance of the Hotel (collectively, the
“Books”), exclusive of (i) original Books which Seller desires to retain, provided that Seller
provides copies thereof to Purchaser, (ii) Seller’s income tax and accounting records, and (iii)
any other materials that Seller is not entitled to transfer, assign or deliver to Purchaser under
the Hotel Management Agreement;

          (i) the advance reservations and bookings for the Hotel, as the same may be amended, canceled
and renewed (the “Reservations”) and advance deposits made in respect thereof (the “Reservation
Deposits”) as are listed in Exhibit F; and

          (j) all of Seller’s right, title and interest in and to all intangible personal property
relating to ownership and operation of the Property and the goodwill pertaining thereto, to the
extent assignable, but excluding the name “Hyatt Dulles” and all websites and domains used
exclusively for the Hotel which are owned and controlled by Manager (the property described in
clause (j) of this Section 1.1 is referred to as the “Intellectual Property”).

     1.2 Property Defined. The Property described in Section 1.1 is referred to
collectively as the “Property.”

     1.3 Permitted Exceptions. The Property shall be conveyed subject to the matters which
are, or are deemed to be, permitted exceptions pursuant to Article II (collectively, the
“Permitted Exceptions”).

2

 

     1.4 Purchase Price. Seller shall sell and Purchaser shall purchase the Property for a
total of SEVENTY TWO MILLION FIVE HUNDRED THOUSAND DOLLARS ($72,500,000) (the “Purchase Price”).

     1.5 Payment of Purchase Price. The Purchase Price, as increased or decreased by
prorations and adjustments as provided for in this Agreement, shall be payable in full at Closing
in cash by wire transfer of immediately available federal funds to a bank account designated by
Title Company in writing to Purchaser prior to the Closing.

     1.6 Earnest Money. Simultaneously with the execution and delivery of this Agreement,
Purchaser is depositing with First American Title Insurance Company (the “Title Company”), having
its office at 1051 East Cary Street, Suite 1111, Richmond, Virginia 23219, Attention: James
DeBoer, the sum of Five Hundred Thousand Dollars ($500,000) (the “First Deposit”) in good funds,
either by certified bank or cashier’s check or by federal wire transfer. If Purchaser does not
exercise the right to terminate this Agreement in accordance with Section 2.3 or
Section 3.2, Purchaser shall, on or before the last date of the Inspection Period (as such
term is defined in Section 3.1), deposit with the Title Company the additional sum of Three
Million Dollars ($3,000,000) (the “Second Deposit”) in good funds, either by certified bank or
cashier’s check or by federal wire transfer as an additional deposit under this Agreement. The
Title Company shall hold the First Deposit and the Second Deposit in an interest-bearing account in
accordance with the terms and conditions of an escrow agreement entered into among Seller,
Purchaser and Title Company simultaneously with the execution of this Agreement. The First Deposit
and the Second Deposit, together with all interest earned on such sums, are referred to
collectively as the “Earnest Money.” All interest accruing on such sums shall become a part of the
Earnest Money and shall be distributed as Earnest Money in accordance with the terms of this
Agreement. If Purchaser does not duly terminate this Agreement pursuant to Section 3.2
prior to the end of the Inspection Period and fails to deliver the Second Deposit to the Title
Company within one (1) business day following the end of the Inspection Period, this Agreement
shall terminate automatically on the last day of the Inspection Period, Title Company shall deliver
the Earnest Money to Seller promptly thereafter and neither party shall have any further rights,
obligations or liabilities hereunder except to the extent that any right, obligation or liability
set forth herein expressly survives termination of this Agreement.

     1.7 Delivery to Title Company. Upon mutual execution of this Agreement, the parties
shall deposit an executed copy of this Agreement with Title Company and this Agreement shall (along
with such supplementary instructions not inconsistent with this Agreement as either party hereto
may deliver to Title Company) serve as escrow instructions to Title Company for the consummation of
the purchase and sale contemplated hereby. Seller and Purchaser agree to execute such additional
escrow instructions as Title Company may reasonably require and which are not inconsistent with the
provisions hereof; provided, however, that in the event of any conflict between the provisions of
this Agreement and any supplementary escrow instructions, the terms of this Agreement shall
control.

3

 

ARTICLE II

TITLE AND SURVEY

     2.1 Title Examination; Commitment for Title Insurance. Seller has obtained and
delivered, or shall obtain and deliver, to Purchaser from the Title Company, an ALTA title
insurance report (the “Title Commitment”) covering the Property. Purchaser shall have until the
date (the “Title Exam Deadline”) which is 10 days prior to the expiration of the Inspection Period
to review the Title Commitment and at Closing obtain from the Title Company an owner’s policy of
title insurance in the full amount of the Purchase Price pursuant to Section 2.4.

     2.2 Survey. During the Inspection Period, Seller shall deliver to Purchaser and the
Title Company, Seller’s existing ALTA survey of the Property (the “Survey”). Purchaser may, at its
sole cost and expense, update and recertify the Survey.

     2.3 Title Objections; Cure of Title Objections. Purchaser shall have until ten (10)
days prior to the expiration of the Inspection Period to notify Seller, in writing, of such
objections as Purchaser may have to anything contained in the Title Commitment or the Survey. Any
item contained in the Title Commitment or any matter shown on the Survey to which Purchaser does
not object prior to the Title Exam Deadline shall be deemed a Permitted Exception. In the event
Purchaser shall notify Seller of objections to title or to matters shown on the Survey prior to the
Title Exam Deadline, Seller shall have the right, but not the obligation, to cure such objections.
Within ten (10) days after receipt of Purchaser’s notice of objections, Seller shall notify
Purchaser in writing whether Seller elects to attempt to cure such objections. If Seller elects to
attempt to cure, and provided that Purchaser shall not have terminated this Agreement in accordance
with Section 3.2, Seller shall have until the date of Closing to attempt to remove, satisfy
or cure the same and for this purpose Seller shall be entitled to a reasonable adjournment of the
Closing if additional time is required, but in no event shall the adjournment exceed sixty (60)
days after the date for Closing set forth in Section 4.1. If Seller elects not to cure any
objections specified in Purchaser’s notice, or if Seller is unable to effect a cure prior to the
Closing (or any date to which the Closing has been adjourned), Purchaser shall have the following
options: (i) to accept a conveyance of the Property subject to the Permitted Exceptions,
specifically including any matter objected to by Purchaser which Seller is unwilling or unable to
cure, and without reduction of the Purchase Price; or (ii) to terminate this Agreement by sending
written notice thereof to Seller, and upon delivery of such notice of termination, this Agreement
shall terminate and the Earnest Money shall be returned to Purchaser, and thereafter neither party
shall have any further rights, obligations or liabilities hereunder except to the extent that any
right, obligation or liability set forth herein expressly survives termination of this Agreement.
If Seller notifies Purchaser that Seller does not intend to attempt to cure any title objection; or
if, having commenced attempts to cure any objection, Seller later notifies Purchaser that Seller
will be unable to effect a cure thereof; Purchaser shall, within five (5) days after such notice
has been given, notify Seller in writing whether Purchaser shall elect to accept the conveyance
under clause (i) or to terminate this Agreement under clause (ii) of this Section 2.3. If
any of Purchaser’s objections consist of delinquent taxes, mortgages, deeds of trust, security
agreements, construction or mechanic’s liens, tax liens or other liens or charges in a fixed sum or
capable of computation as a fixed sum, then, to that extent, notwithstanding anything herein to the
contrary, Seller shall be obligated to pay and discharge (or bond against in a manner

4

 

sufficient to cause the Title Company to insure over such objections) any such Purchaser’s
objections at Closing.

     2.4 Conveyance of Title. At Closing, Seller shall convey and transfer to Purchaser
such title to the Property as will enable the Title Company to issue to Purchaser, at Purchaser’s
expense, an ALTA owner’s policy of title insurance (the “Title Policy”) covering the Property, in
the full amount of the Purchase Price. Notwithstanding anything contained herein to the contrary,
the Property shall be conveyed subject only to the following matters, which shall be deemed to be
Permitted Exceptions:

          (a) the rights of tenants, as tenant only, under the Leases;

          (b) the lien of all ad valorem real estate taxes and assessments not yet due and payable as of
the date of Closing, subject to adjustment as herein provided;

          (c) local, state and federal laws, ordinances or governmental regulations, including but not
limited to, building and zoning laws, ordinances and regulations, now or hereafter in effect
relating to the Property; and

          (d) items appearing of record or shown on the Survey, general and specific plans and planned
development permits, and, in either case, not objected to by Purchaser or waived or deemed waived
by Purchaser in accordance with Sections 2.3 or 2.5.

     2.5 Pre-Closing “Gap” Title Defects. Whether or not Purchaser shall have furnished to
Seller any notice of title objections pursuant to the foregoing provisions of this Agreement,
Purchaser may, at or prior to Closing, notify Seller in writing of any objections to title first
raised by the Title Company or the Surveyor between (a) the date of Purchaser’s receipt of the
Title Commitment and (b) the date on which the transaction contemplated herein is scheduled to
close. With respect to any objections to title set forth in such notice, Seller shall have the
same option to cure and Purchaser shall have the same option to accept title subject to such
matters or to terminate this Agreement as those which apply to any notice of objections made by
Purchaser before the expiration of the Inspection Period. If Seller elects to attempt to cure any
such matters, the date for Closing shall be automatically extended by a reasonable additional time
to effect such a cure, but in no event shall the extension exceed sixty (60) days after the date
for Closing set forth in Section 4.1. Seller shall not, after the Effective Date, subject
the Property to or permit or suffer to exist any liens, encumbrances, covenants, conditions,
restrictions, easements or other title matters or seek any zoning changes without Purchaser’s prior
written consent; provided, however, Seller may continue the Renovation Work (as defined below),
subject to Seller’s disposition of any construction or mechanics’ lien arising from the work being
performed on the Property during this period in the manner provided for in Section 2.3
above.

ARTICLE III

INSPECTION PERIOD; CERTAIN AGREEMENTS

     3.1 Right of Inspection. During the period beginning upon the Effective Date and
ending at 5:00 p.m. (local time at the Property) on Monday, September 19, 2005, which is the date
which is twenty-five (25) days thereafter (hereinafter referred to as the “Inspection Period”),

5

 

Purchaser shall have the right to make a physical inspection of the Property and to examine at
such place or places at the Property designated by Seller, or elsewhere as the same may be located,
any operating files maintained by Seller or Manager in connection with the operations, current
maintenance and management of the Property, including, without limitation, the Management
Agreement, the Leases, lease files, Operating Agreements, insurance policies, bills, invoices,
receipts and other general records relating to the income and expenses of the Property,
correspondence, surveys, plans and specifications, warranties for services and materials provided
to the Property, environmental audits and similar materials, but excluding materials not directly
related to the operations, current maintenance or management of the Property such as, without
limitation, Seller’s internal memoranda, financial projections, budgets, appraisals, accounting and
tax records and similar proprietary, elective or confidential information. Purchaser understands
and agrees that any on-site inspections of the Property shall be conducted upon at least
twenty-four (24) hours’ prior written notice to Seller and in the presence of Seller or its
representative. Such physical inspection shall not unreasonably interfere with the use of the
Property by Seller or its tenants or Hotel guests nor shall Purchaser’s inspection damage the
Property in any respect. Such physical inspection shall not be invasive in any respect (unless
Purchaser obtains Seller’s prior written consent, not to be unreasonably withheld), and in any
event shall be conducted in accordance with standards customarily employed in the industry and in
compliance with all governmental laws, rules and regulations. Following each entry by Purchaser
with respect to inspections or tests on the Property, Purchaser shall restore the Property to a
condition which is as near to its original condition as existed prior to any such inspections or
tests. Seller shall cooperate with Purchaser in its due diligence but shall not be obligated to
incur any liability or expense in connection therewith. Purchaser shall not contact any tenants or
guests of the Property without obtaining Seller’s prior written consent and shall not disrupt
Seller’s or any tenant’s activities on the Property. Purchaser agrees to indemnify against and
hold Seller harmless from any claim for liabilities, costs, expenses (including reasonable
attorneys’ fees actually incurred) damages or injuries arising out of or resulting from the
inspection of the Property by Purchaser or its agents, and notwithstanding anything to the contrary
in this Agreement, such obligation to indemnify and hold harmless Seller shall survive Closing or
any termination of this Agreement. All inspections shall occur at reasonable times agreed upon by
Seller and Purchaser. Seller has delivered to Purchaser or made the same available for reviewing
or printing on Seller’s online document center, but excluding any and all confidential and
proprietary information of Manager, the following (the “Submission Matters”):

	 	1.	 	Copies of the Operating Agreements, Leases and agreements for any leased items
of personal property.
	 
	 	2.	 	To the extent in Seller’s possession, copies of all Licenses and Approvals.
	 
	 	3.	 	A list of Reservations.
	 
	 	4.	 	The monthly and annual financial and operating statements for the Property for
the current calendar year (including audited statements, if available), and, to the
extent in Seller’s possession or reasonably available to Seller, for the previous three
(3) calendar years.

6

 

	 	5.	 	The operating and capital expenditure budget for the Property for the current
calendar year.
	 
	 	6.	 	Copies of receipts for all personal property taxes and ad valorem taxes and
special assessments assessed against the Property for the current calendar year and
prior three calendar years.
	 
	 	7.	 	To the extent available, a complete list of all warranties and guaranties.
	 
	 	8.	 	Copies of any environmental assessments and health reports for the Property in
Seller’s possession.
	 
	 	9.	 	Copies of any parking, structural, mechanical or other engineering reports or
studies related to the Property in Seller’s possession.
	 
	 	10.	 	A copy of Seller’s title insurance policy and Survey.
	 
	 	11.	 	A schedule of pending litigation affecting the Property.
	 
	 	12.	 	A copy of the most recent STAR Report.
	 
	 	13.	 	Copies of any zoning and utility letters affecting the Property.
	 
	 	14.	 	A complete copy of the Hotel Management Agreement.
	 
	 	15.	 	List of any unpaid leasing commissions and tenant inducement costs under any
Leases as of the Effective Date.

     3.2 Right of Termination. In the event Purchaser determines (such determination to be
made in Purchaser’s sole discretion) that the Property is not suitable for its purposes, Purchaser
shall have the right to terminate this Agreement by giving written notice thereof to Seller prior
to the expiration of the Inspection Period. If Purchaser gives such notice of termination within
the Inspection Period, this Agreement shall terminate and the Earnest Money shall be returned to
Purchaser. If Purchaser fails to give Seller a notice of termination prior to the expiration of
the Inspection Period, Purchaser shall no longer have any right to terminate this Agreement under
this Section 3.2 and (subject to the terms of this Agreement) shall be bound to proceed to
Closing and consummate the transaction contemplated hereby pursuant to the terms of this Agreement.

     3.3 Hotel Management Agreement. The Property is subject to a Project Management
Agreement (as amended, the “Hotel Management Agreement”) dated as of June 1, 1988, by and between
HTUP-Dulles Hotel Associates Limited Partnership, a Virginia limited partnership (“Former Owner”),
and Manager, as amended by (a) Subordination, Non-disturbance and Attornment Agreement dated as of
July 29, 1988, by and between NCNB National Bank of North Carolina and Manager, (b) letter
agreement dated May 12, 1992 from Former Owner to Seller (as to which Manager is a third party
beneficiary), (c) letter agreement dated May 12, 1992 from Manager to Seller, and (d) Consent,
Assignment and Assumption and Mutual Estoppel Agreement dated February 1, 2001 among Solus
Southeast Hotel Portfolio Limited Partnership, a

7

 

California limited partnership, Seller and Manager. According to Section 15.2 of the
Hotel Management Agreement, “Owner shall not have the right to sell, hypothecate or convey the
Hotel or any portion thereof, or assign its interest in this Agreement, without the prior written
approval of Hyatt. Hyatt’s approval (which shall not be unreasonably withheld) shall be based on
factors, including, among others, the ability of the prospective assignee to fulfill the financial
obligations of Owner hereunder”. The obligations of Purchaser and Seller to close the sale
contemplated hereby shall be conditioned upon receipt of the approval of Manager to the sale
contemplated hereby pursuant to an agreement in form reasonably acceptable to Seller and Purchaser
(the “Hotel Management Agreement Assignment and Assumption”). If the parties do not receive such
approval on or before the Closing Date, then either party may terminate this Agreement and the
Earnest Money shall be returned to Purchaser. Seller acknowledges and agrees that Purchaser is not
assuming any obligations under that certain letter agreement dated November 16, 2004, between
Colony Advisors LLC and Manager, as amended by that certain letter agreement dated August 19, 2005
relating to the funding of the $4.6 Million renovation (collectively, as amended, the “Renovation
Letter”). Purchaser and Seller shall request (x) a certificate from Manager in accordance with
Section 25 of the Hotel Management Agreement in a completed form satisfactory to Purchaser,
and (y) a release of Seller for all obligations arising or accruing under the Hotel Management
Agreement on or after the Closing Date. The parties shall use reasonable efforts (and, as used
herein, “reasonable efforts” shall not require any party to incur any obligation or cost not
otherwise contemplated under this Agreement) to obtain such certificate and release. Receipt of
such certificate and release shall be a condition to Purchaser’s and Seller’s obligation to close.
If the parties do not receive such certificate or release on or before the Closing Date, then
either party may terminate this Agreement and the Earnest Money shall be returned to Purchaser.

     3.4 Association Estoppel. The Property is subject to that certain Declaration of
Protective Covenants and Restrictions for Dulles Corner by and between Dulles Corner Properties II
Limited Partnership (“Dulles II) and Dulles Corner Properties I Limited Partnership (“Dulles I”)
dated July 10, 1987, as supplemented by the Supplemental Declaration of Protective covenants and
Restrictions by and between Sovran Bank, N.A., Dennis Griffith, trustee, Kendal E. Carson, trustee,
Real Title Company, Inc., trustee and Pittsburgh National Bank, dated July 17, 1987, amended by an
Amendment to Declaration of Protective Covenants and Restrictions for Dulles Corner between Dulles
II and Dulles I dated May 10, 1988, as further amended and restated by the Amended and Restated
Declaration of Protective Covenants and Restrictions for Dulles Corner between Dulles II and Dulles
I dated September 24, 1990 and as further amended by the Amendment No. 1 to Amended and Restated
Declaration of Protective Covenants and Restrictions for Dulles Corner by and between Dulles II and
Mayfair Joint Venture dated December 31, 1996 (collectively, the “Declaration”). Seller and
Purchaser shall endeavor to obtain an estoppel certificate from Dulles Corner Association, Inc.
(“DCA”), in form reasonably acceptable to Purchaser and Seller (the “DCA Estoppel”) with respect to
the Declaration. Receipt of the DCA Estoppel shall be a condition to Purchaser’s and Seller’s
obligation to close. If the parties do not receive the DCA Estoppel on or before the Closing Date,
then Purchaser may terminate this Agreement and the Earnest Money shall be returned to Purchaser.

     3.5 Parking Easement. The Property is subject to a certain Parking Easement Agreement
dated as of July 17, 1987 (the “Parking Easement”), by and among HT-Dulles Hotel, Inc., Dulles
Corner Properties II Limited Partnership, Sovran Bank, N.A. and Dennis M. Griffith,

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trustee, and Kendal E. Carson, trustee, which, to Seller’s actual knowledge has not been
amended or modified and is in full force and effect. Seller and Purchaser shall endeavor to obtain
an estoppel certificate from the other parties to the Parking Easement in form that complies with
the terms of the Parking Easement, or if there is no such form, in a form reasonably acceptable to
Purchaser (the “Parking Estoppel”). If the parties do not receive the Parking Estoppel on or
before the Closing Date, then Purchaser may terminate this Agreement and the Earnest Money shall be
returned to Purchaser.

ARTICLE IV

CLOSING

     4.1 Time and Place. The Parties shall conduct an escrow closing (the “Closing”) on
Friday, October 14, 2005, the date which is twenty-five (25) days after the expiration of the
Inspection Period or such later date as the same may be extended to pursuant to Section 2.3
or 2.5 (the “Closing Date”). In the event the Closing does not occur on or before the
Closing Date, the Title Company shall, unless it is notified by both Seller and Purchaser to the
contrary within three (3) days after the Closing Date, return to the depositor thereof items other
than the Earnest Money which were deposited thereunder; any such return shall not, however, relieve
either party of any liability it may have for its wrongful failure to close. At Closing, Seller
and Purchaser shall perform the obligations set forth in, respectively, Section 4.2 and
Section 4.3, the performance of which obligations shall be concurrent conditions to the
obligations of Seller and Purchaser to close.

     4.2 Seller’s Obligations at Closing. Not less than one business day prior to Closing,
Seller shall deliver to Title Company:

          (a) a duly executed grant deed in the form of Exhibit H, conveying the Land and
Improvements, subject only to the Permitted Exceptions; the warranty of title in the Deed will be
only as to claims made by, through or under Seller and not otherwise;

          (b) four (4) duly executed counterparts of a bill of sale in the form of Exhibit I;

          (c) four (4) duly executed counterparts of an assignment and assumption agreement with respect
to the Leases in the form of Exhibit J;

          (d) four (4) duly executed counterparts of an assignment and assumption agreement with respect
to the Operating Agreements, other Intangibles and the Intellectual Property, in the form of
Exhibit K;

          (e) duly executed notices in the form of Exhibit L which Purchaser shall send to
tenants informing them of the sale of the Property and of the assignment to Purchaser of Seller’s
interest in, and obligations under, the Leases (including, if applicable any security deposits) and
directing that all rent and other sums payable after the Closing under the Leases shall be paid as
set forth in the notice;

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          (f) a certificate, dated as of the date of Closing and executed on behalf of Seller by a duly
authorized officer thereof, stating that the representations and warranties of Seller contained in
this Agreement are true and correct in all material respects as of the date of Closing (with
appropriate modifications of those representations and warranties made in Section 5.1 to
reflect any changes therein including without limitation any changes resulting from actions under
Section 5.4) or identifying any representation or warranty which is not, or no longer is,
true and correct and explaining the state of facts giving rise to the change. In no event shall
Seller be liable to Purchaser for, or be deemed to be in default hereunder by reason of, any breach
of representation or warranty which results from any change that (i) occurs between the Effective
Date and the date of Closing and (ii) is expressly permitted under the terms of this Agreement or
is beyond the reasonable control of Seller to prevent; provided, however, that the occurrence of a
change which is not permitted hereunder or is beyond the reasonable control of Seller to prevent
shall, if materially adverse to Purchaser, constitute the non-fulfillment of the condition set
forth in Section 4.18(b); if, despite changes or other matters described in such
certificate, the Closing occurs, Seller’s representations and warranties set forth in this
Agreement shall be deemed to have been modified by all statements made in such certificate;

          (g) such evidence as the Title Company may reasonably require as to the authority of the
person or persons executing documents on behalf of Seller;

          (h) four (4) duly executed counterparts of an affidavit by Seller stating that Seller is not a
“foreign person” as defined in the Federal Foreign Investment in Real Property Tax Act of 1980 and
the 1984 Tax Reform Act in the form of Exhibit O;

          (i) the Leases, Operating Agreements and licenses and permits, if any, in the possession of
Seller or Seller’s agents, together with such property files and records which are material in
connection with the continued operation, leasing and maintenance of the Property which, at
Purchaser’s election, may be delivered outside of Escrow on the Closing Date;

          (j) subject to the provisions of Section 5.4(b), duly executed copies of the Tenant
Estoppels;

          (k) four (4) duly executed counterparts of a Designation Agreement in the form of Exhibit
P, which Designation Agreement names the Title Company as the “Reporting Person” under Section
6045(e) of the Internal Revenue Code (the “‘Designation Agreement”);

          (l) four (4) duly executed counterparts of the Hotel Management Agreement Assignment and
Assumption;

          (m) if obtained by Purchaser and Seller, a duly executed copy of the DCA Estoppel;

          (n) such additional documents as shall be reasonably required to consummate the transaction
expressly contemplated by this Agreement;

          (o) certificate(s) or registration of title for any vehicle owned by Seller and used in
connection with the Property;

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          (p) such agreements, affidavits or other documents as may be required by the Title Company to
issue the title policy to Purchaser subject only to the Permitted Title Exceptions and to eliminate
such standard exceptions and to issue such endorsements thereto which may be eliminated and issued
under applicable State law and which are customarily required by institutional investors purchasing
property comparable to the Property; and

          (q) a closing statement (“Closing Statement”) reflecting the Purchase Price and the
adjustments and prorations required hereunder and the allocation of income and expenses required
hereby.

At the Closing, Seller shall deliver to Purchaser, subject to the rights and obligations of the
Manager under the Hotel Management Agreement, possession and occupancy of the Property subject to
the Permitted Exceptions. Purchaser shall cooperate with Seller for a period of seven (7) years
after the Closing in case of Seller’s need in response to any legal requirements, tax audits, tax
return preparation or litigation threatened or brought against Seller, by allowing Seller and its
agents or representatives access, upon reasonable advance notice (which notice shall identify the
nature of the information sought by Seller), at all reasonable times to examine and make copies of
any and all instruments, files and records, which right shall survive the Closing.

     4.3 Purchaser’s Obligations at Closing. At or prior to Closing, Purchaser shall
deliver to Title Company:

          (a) the full amount of the Purchase Price, as increased or decreased by prorations and
adjustments as herein provided, in immediately available wire transferred funds pursuant to
Section 1.5, it being agreed that at Closing the Earnest Money shall be applied towards
payment of the Purchase Price;

          (b) four (4) duly executed counterparts of the instruments described in Sections
4.2(b), 4.2(c), 4.2(d), 4.2(h), 4.2(k) and 4.2(l);

          (c) such evidence as the Title Company may reasonably require as to the authority of the
person or persons executing documents on behalf of Purchaser;

          (d) such additional documents as shall be reasonably required to consummate the transaction
contemplated by this Agreement; and

          (e) the Closing Statement.

     4.4 Title Company’s Obligations at Closing. At Closing, Title Company shall:

          (a) at such time as Title Company holds and is irrevocably obligated to deliver the Purchase
Price to Seller, record and file the Deed in the Official Records of Fairfax County, Virginia.

          (b) deliver to Seller the Purchase Price by wire transfer of immediately available federal
funds to a bank account designated by Seller in writing to Title Company prior to the Closing;

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          (c) deliver to each of Seller and Purchaser two (2) fully executed counterparts of the
instruments described in Sections 4.2(b), 4.2(c), 4.2(d), 4.2(h),
4.2(k) and 4.2(l);

          (d) deliver to Purchaser fully executed originals of the notices described in Section
4.2(e) and the certificate described in Section 4.2(f), and deliver copies of each of
such instruments to Seller;

          (e) deliver to each of Seller and Purchaser a fully executed counterpart of the documents
described in Sections 4.2(j) and 4.2(m); and

          (f) deliver to Seller and Purchaser the Closing Statement prepared by Title Company and
approved by Seller and Purchaser. The parties will endeavor to cause the Title Company to submit a
preliminary draft of the Closing Statement not less than two (2) business days prior to Closing.

     4.5 Apportionments. The following apportionments shall be made between Seller and
Purchaser as of 11:59 P.M. local time at the Property, on the day immediately preceding the Closing
Date (the “Apportionment Date”). Where applicable, the apportionments shall be made by the
Purchaser and Seller pursuant to and as defined in Section 4.17.

          (a) Amounts paid or payable under the Leases, under any new leases executed after the date of
this Agreement pursuant to the provisions hereof and under all Operating Agreements. At the
Closing, Seller shall either deliver to Purchaser any security deposits actually held by Seller
pursuant to the Leases or credit to the account of Purchaser the amount of such security deposits
(to the extent such security deposits are not applied against delinquent rentals or otherwise as
provided in the Leases). Unpaid and delinquent rent under the Leases collected by Seller and
Purchaser after the Closing Date shall be delivered as follows: (a) if Seller hereafter collects
any unpaid or delinquent rent for the Property, Seller shall deliver to Purchaser any such rent
relating to the date of Closing and any period thereafter within fifteen (15) days after the
receipt thereof, and (b) if Purchaser hereafter collects any unpaid or delinquent rent from the
Property, Purchaser shall deliver to Seller any such rent relating to the period prior to the date
of Closing within fifteen (15) days after the receipt thereof. Seller and Purchaser agree that (i)
all rent received by Seller after the date of Closing shall be applied first to delinquent rentals,
if any, in the order of their maturity, and then to current rentals, and (ii) all rent received by
Purchaser after the date of Closing shall be applied first to current rentals and then to
delinquent rentals, if any, in inverse order of maturity. Purchaser will make a good faith effort
after Closing to collect all rents in the usual course of Purchaser’s operation of the Property,
but Purchaser will not be obligated to institute any lawsuit or other collection procedures to
collect delinquent rents. Purchaser hereby assumes responsibility for the payment of any unpaid
leasing commissions and tenant inducement costs with respect to the Property under the Leases from
and after the Effective Date. Management fees under the Hotel Management Agreement shall be
prorated. With respect to any incentive management fee payable after the Closing Date that relate
in whole or in part to a period prior to the Closing (the “Incentive Fee Period”), upon calculation
and payment of such incentive fees by Purchaser to Manager, Seller shall pay to Purchaser an amount
equal to the product obtained by multiplying the incentive fee so calculated and paid by a
fraction, the numerator of which is the number of

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days in the Incentive Fee Period which are prior to the Closing Date and the denominator of
which is the total number of days in the Incentive Fee Period.

          (b) Tour agents’ and travel agents’ commissions with respect to the Hotel.

          (c) General real estate taxes, water or sewer rates and charges (if not metered), personal
property taxes, or any other governmental tax or charge levied or assessed against the Property
(collectively, the “Taxes”), relating to the Property for the year in which Closing occurs. If the
Closing shall occur before the actual Taxes for the year of Closing are known, the apportionment of
Taxes shall-be upon the basis of the latest available tax rates and assessed value of the Property,
provided that, if the Taxes for the year of Closing are thereafter determined to be more or less
than the Taxes for the preceding year (after any appeal of the assessed valuation thereof is
concluded), Seller and Purchaser promptly (but no later than the date that is thirty (30) days from
and after the date that the final invoices for taxes for the Property for the year in which the
Closing occurs are issued by the applicable taxing authority, except in the case of an ongoing tax
protest) shall adjust the proration of such Taxes, and Seller or Purchaser, as the case may be,
shall pay to the other any amount required as a result of such adjustment. Further, if Seller
undertakes a tax protest with respect to all or any portion of the Taxes for the year in which
Closing occurs or any previous year, any refund relating to any previous year shall be the property
of Seller, and any refund relating to the year in which Closing occurs shall be prorated as of the
Apportionment Date. All Taxes assessed for periods after the date of Closing shall be paid by
Purchaser.

          (d) With respect to electricity, telephone, television, cable television, gas, water and sewer
services that are metered and other utilities (collectively, the “Utilities”), Seller shall
endeavor to have the respective companies providing the Utilities read the meters for the Utilities
on or immediately prior to the Apportionment Date. Seller shall be responsible for all charges
based on such final meter reading, and Purchaser shall be responsible for all charges thereafter.
If such readings are not obtainable, then, until such time as readings are obtained, charges for
all Utilities for which readings were not obtained shall be pro rated as of the Apportionment Date
based upon the per diem rate obtained by using the last period and bills for such Utilities that
are available. Upon the taking of a subsequent actual reading, such apportionment shall be
adjusted to reflect the actual per diem rate for the billing period in which the date of Closing
falls, and Seller or Purchaser, as the case may be, shall promptly deliver to the other the amount
determined to be due upon such adjustment.

          (e) Room charges as to the Hotel for the night commencing on the Apportionment Date and ending
on the morning of the date of Closing shall be split equally between the parties. Dinner and bar
charges for the evening of the Apportionment Date shall be the property of Seller. Breakfast
charges for the morning of the date of Closing shall be the property of Purchaser.

          (f) Seller shall receive full reimbursement from Purchaser at Closing for each of the
following items:

     (i) prepaid fees or other charges for transferable licenses, advertising
expenses, permits, telephone equipment, telephone rental, or other items, if any,

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          to the extent the rights to such prepaid fees or other charges are assigned by
Seller to Purchaser at Closing; and

     (ii) transferable deposits with companies providing Utilities, if any, to the
extent the rights to such transferable deposits are assigned by Seller to Purchaser
at Closing.

          (g) Amounts prepaid or payable under any Operating Agreements.

          (h) Such other items as are customarily provided and adjusted in the sale of a hotel
(including, without limitation, promotional items and trade advertising due bills) shall be
apportioned between Seller and Purchaser.

          (i) The apportionments as to the Hotel in this Section 4.5 shall be prepared, to the
extent applicable, in accordance with the current edition of the Uniform System of Accounts for
Hotels of the Hotel Association of New York City, Inc., as adopted by the American Hotel
Association of the United States and Canada.

     4.6 Unopened Food and Beverage Inventory. Purchaser shall purchase at Closing the
full amount of all of unopened cases of food and beverage inventory located on or used in
connection with the Property as of the Apportionment Date (excluding alcoholic beverages, which
shall be purchased by Purchaser pursuant to Section 5.8). All such inventory shall be
separately paid for by Purchaser at Closing at Seller’s cost. During the night of the
Apportionment Date, and prior to the time scheduled for the commencement of Closing on the date of
Closing, representatives of both Seller and Purchaser shall prepare an inventory of all such
unopened food and beverage items, together with a schedule identifying the unit cost of such items,
as actually paid by Seller as supported by the Books for the Property.

     4.7 Accounts Receivable and Accounts Payable.

          (a) As and when the same are received by Purchaser, Purchaser shall pay Seller the full amount
of all accounts receivable outstanding as of the date of Closing owing from any present guests of
the Hotel incurred during that guest’s present stay, and room charges for all guests of the Hotel
for the night of the Apportionment Date shall be the property of Seller as provided in Section
4.5(e). Said accounts receivable are hereinafter referred to as the “Included Accounts
Receivable.” Purchaser is not purchasing any of the receivables of the Hotel, including, without
limitation, the Included Accounts Receivable; provided, however, Purchaser shall receive a credit
to the Purchase Price in an amount equal to one-half (1/2) of the room charges referred to in
Section 4.5(e) of this Agreement. Purchaser and Seller shall cooperate in the collection
of such accounts receivable (including, without limitation, the Included Accounts Receivable), and
for such purpose, Seller shall be entitled to assign a representative to be at the hotel for a
period of ninety (90) days following the Closing to supervise such collections. Purchaser agrees
to cause the Hotel’s employees to cooperate with Seller’s representative in reviewing such accounts
receivable, and in answering any inquiries with respect thereto. Purchaser further agrees to
promptly remit to Seller any funds received by it in payment of such accounts receivable. With
regard to any collection made from any person or entity who is indebted to the Hotel both with
respect to accounts receivable accruing prior to the Closing and

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to the accounts receivable accruing subsequent to the Closing, such collection shall be
applied as designated, but if there is no designation, then any such collections received within
ninety (90) days after the Closing shall be applied first to the indebtedness accrued prior to the
Closing, but thereafter, any such collections shall be applied first to the payment of any amounts
due to Purchaser on accounts accruing subsequent to the Closing.

          (b) Purchaser shall be credited, at Closing, for any accounts payable outstanding on the date
of Closing, with respect to the operation of the Hotel prior to Closing, except those accounts
payable that are disputed by Seller. Seller shall identify all such disputed accounts payable as
provided in Section 4.7(c) and shall indemnify, defend and hold Purchaser harmless against
any liability arising out of any accounts payable dispute(s) so identified by Seller. The accounts
payable for which Purchaser is entitled to a credit against the Purchase Price at Closing are
hereinafter referred to as the “Assumed Accounts Payable.” In consideration of the credit against
the Purchase Price, Purchaser agrees to pay all Assumed Accounts Payable as and when due and
further agrees to indemnify, defend and hold Seller harmless from and against any cost or liability
resulting from nonpayment or late payment of any of such Assumed Accounts Payable.

          (c) During the night of the Apportionment Date, and prior to the time scheduled for the
commencement of the Closing on the Date of Closing, Seller’s representatives shall prepare and
deliver to Purchaser or its representatives a schedule detailing all Assumed Accounts Payable
incurred prior to the Apportionment Date.

     4.8 House Banks; Reserve. The sale of the Hotel does not include cash, checks and
other funds, including till money, house banks, and notes, securities and other evidence of
indebtedness held at the Hotel as of the Apportionment Date, nor does it include balances on
deposit to the credit of Seller or the Manager, as Seller’s agent, with banking institutions
(collectively, the “House Banks”), or any other funds, operating accounts or reserves held by
Manager on Seller’s behalf. Notwithstanding the foregoing, the “Fund for Replacement of and
Additions to Furnishings and Equipment,” (as defined in the Management Agreement), shall be
retained by Manager for the benefit of Purchaser, and Seller shall be credited at the Closing with
the amount so retained.

     4.9 Reservation and Other Deposits. On the date of Closing, the aggregate amount of
any Reservation Deposits or other advance payments and deposits (as determined by Purchaser and
Seller) received by Seller (which shall be retained by Seller) shall be credited against the
Purchase Price. Purchaser shall execute a receipt for any Reservation Deposits or other advance
payments and deposits for which Purchaser receives a credit against the Purchase Price, and shall
indemnify and hold Seller harmless from and against all claims by, and liabilities to, future
guests pertaining to the application or return of the Reservation Deposits or other advance
payments and deposits for which Purchaser receives a credit against the Purchase Price, in
accordance with this Section 4.9.

     4.10 Safes and Baggage. On the date of Closing, Seller shall cause the delivery to
Purchaser of all of Seller’s keys to the safes in the Hotel. On the date of Closing, Seller shall
give written notices to those persons who have deposited items in the safes, advising them of the
sale of the Hotel to Purchaser and requesting the removal or verification of their contents in the

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safes. All such removals or verifications on the date of Closing shall be under the
supervision of Seller’s and Purchaser’s respective representatives. All contents that are to
remain in the safes shall be recorded. Items belonging to guests who have not responded to such
written notice by so removing and verifying their safe contents by the end of the date of Closing
shall be recorded in the presence of the respective representatives. Any such contents so verified
and recorded and thereafter remaining in the hands of Purchaser shall be the responsibility of
Purchaser, and Purchaser hereby agrees to indemnify, defend and hold Seller harmless from and
against any liability therefor. Seller hereby agrees to indemnify and hold Purchaser harmless from
and against any liability arising from claims by guests for any loss of contents in the safe not
recorded on the date of Closing. On the date of Closing, representatives of Purchaser and Seller
shall take an inventory of all baggage, valises and trunks checked or left in the care of Seller.
From and after the date of Closing, Purchaser shall be responsible for all baggage listed in said
inventory, and Purchaser hereby agrees to indemnify, defend and hold Seller harmless from and
against any liability therefor. Seller shall remain liable for any negligence or misfeasance with
respect to such baggage which occurred prior to the date of Closing as well as for claimed
omissions from said inventory, and Seller hereby agrees to indemnify and hold Purchaser harmless
from and against any liability therefor.

     4.11 Employees. Wages, salaries, employee benefits, vacation and sick pay payable to
the employees of Manager and for which the owner of the Property is responsible under the terms of
the Hotel Management Agreement shall continue to be accounted for and charged in accordance with
Manager’s current practices, and shall be prorated as of the Closing Date. The parties acknowledge
that all employees of the Hotel are employees of Manager and not of Seller. Purchaser agrees to
assume all responsibility for compliance with the Federal Worker Adjustment and Retraining
Notification Act (WARN) statute and any similar state or local law, statute, ordinance or
regulation, shall take whatever measures are necessary to comply with or avoid a violation of WARN
or such other laws, and shall indemnify, defend and hold Seller harmless from any costs, claims or
damages resulting from any such violation or failure to comply, such indemnity to survive the Close
of Escrow.

     4.12 Property Not Included In Sale. The following shall not be included in the
Property to be sold hereunder:

          (a) Tax deposits, utility deposits and other deposits, except for transferable utility
deposits, which are to be apportioned as herein provided, and except for Reservation Deposits which
are credited against the Purchase Price in accordance with Section 4.9.

          (b) Accounts receivable other than Included Accounts Receivable. Seller shall retain such
accounts receivable, and Purchaser shall use commercially reasonable efforts to collect same, but
Purchaser will not be obligated to institute any lawsuit or other collection procedures to collect
any accounts receivables. If any of the same are collected by Purchaser, Purchaser promptly shall
pay over to Seller the amount thereof.

     4.13 Settlement of Apportionments. If the computation of the apportionments and
adjustments described in this Section 4 shows that a net amount is owed by Seller to
Purchaser, such amount shall be credited against the Purchase Price as provided for in Section
1.5. If such computation shows that a net amount is owed by Purchaser to Seller, such amount
shall be paid

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by wire transfer to Seller by Purchaser on the Closing Date in addition to the payment of the
cash portion of the Purchase Price to be made by Purchaser under Section 1.5.

     4.14 Closing Costs. Seller shall pay (a) the fees of any counsel representing it in
connection with this transaction (b) the standard coverage portion of the premium for the owner’s
policy of title insurance to be issued to Purchaser by the Title Company at Closing; (c) one-half
(1/2) of any escrow fee which may be charged by the Title Company; (d) any deferred management fees
owed from Seller to Hyatt at the time of Closing, including the outstanding balance as of the
Closing Date of any deferred Basic Fee or Incentive Fee (as those terms are defined in the Hotel
Management Agreement) under the Hotel Management Agreement and Renovation Letter; and (e) the
grantor tax of $1.00 per $1,000. Purchaser shall pay (u) the fees of any counsel representing
Purchaser in connection with this transaction; (v) the premium for the extended coverage portion of
the owner’s policy of title insurance to be issued to Purchaser by the Title Company at Closing and
the costs of any endorsements thereto; (w) the cost of updating or recertifying the Survey; (x) all
other state, county and city transfer, documentary or similar taxes (excluding the grantor tax of
$1.00 per $1,000, but including the state transfer tax of $2.50 per $1,000 and local transfer tax
which is approximately equal to 1/3 of the total state transfer tax) in connection with the
transfer of the Property; (y) the fees for recording the deed conveying the Property to Purchaser;
and (z) one-half (1/2) of any escrow fees charged by Title Company. All other costs and expenses
incident to this transaction and the closing thereof shall be paid by the party incurring same.

     4.15 Utility Services and Deposits. Seller shall be entitled to the return of any
deposit(s) posted by it with any utility company not assigned to Purchaser pursuant to the
provisions hereof, and Seller shall notify each utility company serving the Property to terminate
Seller’s account, effective on the Date of Closing.

     4.16 Post-Closing Collections and Adjustments. Concurrently with the Closing,
representatives of Seller and Purchaser shall cause a preliminary closing statement to be prepared
reflecting their respective closing costs, the apportionments, the payment of the Purchase Price
and all other terms of this Agreement affecting or relating to the amount of and adjustments to the
consideration to be paid for the Property. In the event either Purchaser or Seller becomes aware
of any item in the closing statement which requires adjustment as a result of new information or
the ascertainment of actual amounts for items which are the subject of estimates at Closing, it
shall promptly advise the other in writing and provide such supporting documentation as shall
reasonably be required. Upon the ninetieth (90th) day following the date of Closing, or earlier
upon mutual agreement of the parties, Purchaser or Seller, as the case may be, shall make such
additional payment or refund as shall be required by the aggregate of any such post-Closing
adjustments (including, without limitation, adjustments resulting from collection of accounts
receivable that are not Included Accounts Receivable and adjustment of the Estimated Amount for
Outstanding Renovation Work under Section 5.9), and a final closing statement shall be
prepared to reflect such revisions, subject only to subsequent adjustments provided for in
Section 4.5. In addition, if accurate allocations cannot be made at Closing or on the
final closing statement because current bills are not then obtainable (as, for example, in the case
of utility bills or real estate or personal property taxes), the parties shall allocate such
revenue or expenses at Closing on the best available information, subject to adjustment upon
receipt of the final bill or other evidence of the applicable revenue or expense. The obligation
to

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make the adjustment shall survive the Closing. Any revenue received or expense incurred by
Seller or Purchaser with respect to the Property after the date of Closing shall be promptly
allocated in the manner described herein and the parties shall promptly pay or reimburse any amount
due. This provision shall not merge with the grant deed delivered hereunder but shall survive
Closing.

     4.17 Closing Statement. On the day of or on the day prior to the day of Closing,
Purchaser and Seller shall make such inventories, examinations and audits of the Hotel, and of the
books and records of the Hotel, as Purchaser and Seller may deem necessary, make the
apportionments, adjustments and prorations required under this Agreement. Purchaser and Seller
shall make the apportionments described in this Article IV, except as specifically set
forth to the contrary herein. The determination shall be used in the preparation of the Closing
statement which will show the net amount of apportionments and adjustments due either to Seller or
to Purchaser as the result of the prorations and credits specified in this Article 4.

     4.18 Conditions Precedent to Obligation of Purchaser. The obligation of Purchaser to
consummate the transaction hereunder shall be subject to the fulfillment on or before the date of
Closing of all of the following conditions, any or all of which may be waived by Purchaser in its
sole discretion:

          (a) Seller shall have delivered to Purchaser all of the items required to be delivered to
Purchaser pursuant to the terms of this Agreement, including but not limited to, those provided for
in Section 4.2.

          (b) All of the representations and warranties of Seller contained in this Agreement shall be
true and correct in all material respects as of the date of Closing (with appropriate modifications
permitted under this Agreement or not adverse to Purchaser).

          (c) Seller shall have performed and observed, in all material respects, all covenants and
agreements of this Agreement to be performed and observed by Seller as of the date of Closing,
including but not limited to, those provided for in Section 5.4.

     4.19 Conditions Precedent to Obligation of Seller. The obligation of Seller to
consummate the transaction hereunder shall be subject to the fulfillment on or before the date of
Closing of all of the following conditions, any or all of which may be waived by Seller in its sole
discretion:

          (a) Seller shall have received the Purchase Price as adjusted pursuant to and payable in the
manner provided for in this Agreement.

          (b) Purchaser shall have delivered to Seller all of the items required to be delivered to
Seller pursuant to the terms of this Agreement, including but not limited to, those provided for in
Section 4.3.

          (c) All of the representations and warranties of Purchaser contained in this Agreement shall
be true and correct in all material respects as of the date of Closing.

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          (d) Purchaser shall have performed and observed, in all material respects, all covenants and
agreements of this Agreement to be performed and observed by Purchaser as of the date of Closing,
including, but not limited to, those provided for in Sections 5.7, 5.8 and
5.9.

ARTICLE V

REPRESENTATIONS, WARRANTIES AND COVENANTS

     5.1 Representations and Warranties of Seller. Seller hereby makes the following
representations and warranties to Purchaser as of the Effective Date:

          (a) Organization and Authority. Seller has been duly organized and is validly
existing under the laws of Delaware. Seller has the full right and authority to enter into this
Agreement and, to transfer all of the Property to be conveyed by Seller pursuant hereto and to
consummate or cause to be consummated the transactions contemplated herein to be made by Seller.
The person signing this Agreement on behalf of Seller is authorized to do so. The execution and
delivery of, and the performance by Seller of its obligations under this Agreement do not, and will
not contravene, or constitute a default under, any provision of applicable law or regulation or any
agreement, judgment, injunction, order, decree or other instrument binding upon Seller or to which
the Property is subject, or result in the creation of any lien or other encumbrance on any asset of
Seller. Seller has not applied for or consented to the appointment of, or the taking of possession
by, a receiver, custodian, trustee or liquidator of itself or of all or a substantial part of its
property, admitted in writing its inability to pay its debts as they become due, made a general
assignment for the benefit of its creditors, filed a voluntary petition or commence a voluntary
case or proceeding under the Federal Bankruptcy Code (as now or hereafter in effect), been
adjudicated a bankrupt or insolvent, failed to controvert in a timely and appropriate manner, or
acquiesced in writing to, any petition filed against it in an involuntary case or proceeding under
the Federal Bankruptcy Code (as now or hereafter in effect), or taken any corporate or partnership
action for the purpose of effecting any of the foregoing.

          (b) Pending Actions. There is no action, suit, arbitration, unsatisfied order or
judgment, governmental investigation or proceeding pending, or to Seller’s knowledge, threatened
against the Property or the transaction contemplated by this Agreement, except for those listed on
Exhibit B to this Agreement, which, if adversely determined, could individually or in the
aggregate have a material adverse effect on title to the Property or any portion thereof, could
materially and adversely affect the business, financial position or results of operations of Seller
or the Property, or which could in any material way interfere with the consummation by Seller of
the transaction contemplated by this Agreement.

          (c) Leases. Seller is the lessor under the Leases. Except as set forth in the Lease
Schedule, to Seller’s knowledge, there are no other leases or occupancy agreements to which Seller
is a party affecting the Property. Seller has not received any advance rent or advance
compensation under any Leases in excess of one month. No brokerage commissions or compensation of
any kind shall hereafter be due in connection with the Leases. To Seller’s knowledge, no party is
in default under any Lease. Seller has received no notice of any intention by any of the parties
to any of the Leases to cancel the same. Seller does not represent or warrant that any of the
Leases will be in force or effect at Closing or that the tenants under the

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Leases will have performed its or their obligations thereunder. The termination of any of the
Leases prior to Closing by reason of the tenant’s default or otherwise shall not affect the
obligations of Purchaser under this Agreement in any manner or entitle Purchaser to an abatement of
or credit against the Purchase Price or give rise to any other claim on the part of Purchaser.

          (d) Condemnation. No condemnation proceedings relating to the Property are pending or
to Seller’s Knowledge, threatened.

          (e) Operating Agreements. To Seller’s actual knowledge, Exhibit D identifies
all Operating Agreements and agreements for any leased items of Personal Property (exclusive of any
purchase orders with respect to hotel supplies, operating equipment, food and beverage, items
relating to repairs, maintenance and replacement, and similar items ordered and delivered in the
ordinary course of business, except to the extent that any of the foregoing involves contracts for
significant goods or services to be provided on an ongoing basis). To Seller’s knowledge, Seller
has performed all of its obligations thereunder in all material respects, and is not in default
thereunder in any material respect.

          (f) Violations. Except as set forth on Exhibit T, to Seller’s actual
knowledge, Seller has received no written notice that the use and operation of the Property is not
in full compliance with applicable building codes, environmental, zoning and land use laws, and
other applicable local, state and federal laws and regulations, and Seller has not received prior
to the Effective Date any written notification from any governmental or public authority (i) that
the Property is in violation of any applicable fire, health, building, use, occupancy or zoning
laws where such violation remains outstanding and, if unaddressed, would have a material adverse
effect on the use of the Property as currently owned and operated or (ii) that any work is required
to be done upon or in connection with the Property, where such work remains outstanding and, if
unaddressed, would have a material adverse effect on the use of the Property as currently owned and
operated.

          (g) Taxes. To Seller’s best knowledge, all federal, state and local employment taxes,
payroll taxes, excise taxes, occupancy or entertainment taxes, ad valorem taxes, liquor taxes,
sales or use taxes and real property (including secured personal property) taxes and assessments
due and payable as of the date of this Agreement in connection with the ownership or operation of
the Hotel have been paid. All such taxes due and payable as of the date of Closing will be timely
paid by Seller.

          (h) Insurance Notices. Except as set forth in Exhibit U, Seller has not
received prior to the Effective Date any written notice from any insurance company or board of fire
underwriters of any defects or inadequacies in or on the Property or any part or component thereof
that would materially and adversely affect the insurability of the Property or cause any material
increase in the premiums for insurance for the Property that have not been cured or repaired.

          (i) Environmental Matters. Except as set forth in any environmental assessment
reports in Seller’s possession and delivered to Purchaser or as otherwise disclosed in Exhibit
V, Seller has received no written notification that any governmental or

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quasi-governmental authority has determined that there are any violations of, or remediation
obligations under any, environmental statutes, ordinances or regulations affecting the Property.

          (j) Labor Matters. Neither Seller nor Manager is a party to any union or other
collective bargaining agreement with employees employed in connection with the ownership, operation
or maintenance of the Property.

          (k) Financial Information. To Seller’s knowledge, all of Seller’s financial
information delivered or made available to Purchaser (“Financial Information”) is correct and
complete in all material respects and presents accurately the results of the operations of the
Property for the periods indicated. Since the date of the last financial statement included in
Seller’s Financial Information, there has been no material adverse change in the financial
condition or in the operations of the Property.

          (l) No Commitments. No commitments have been made to any Governmental Authority,
utility company, school board, church or other religious body, or any homeowner’s association or
any other organization, group or individual, relating to the Property which would impose an
obligation upon Purchaser to make any contribution or dedication of money or land or to construct,
install or maintain any improvements of a public or private nature on or off the Property.

     5.2 Knowledge Defined. References to the “knowledge” or “actual knowledge” of Seller
shall refer only to the actual knowledge of the Designated Employees (defined below) of Seller and
its affiliates, and shall not be construed, by imputation or otherwise, to refer to the knowledge
of Seller, or any affiliate of Seller, to Manager, or to any other officer, agent, manager,
representative or employee of Seller or any affiliate thereof or to impose upon such Designated
Employees any duty to investigate the matter to which such actual knowledge, or the absence
thereof, pertains. As used herein, the term “Designated Employees” shall refer to the following
persons: David Monahan and Tim Obert.

     5.3 Survival of Seller’s Representations and Warranties. The representations and
warranties of Seller set forth in Section 5.1, as updated by the certificate of Seller to
be delivered to Purchaser at Closing in accordance with Section 4.2(f), shall survive
Closing for a period of nine (9) months. No claim for a breach of any representation or warranty
of Seller shall be actionable or payable (a) if the breach in question results from or is based on
a condition, state of facts or other matter of which Purchaser has notice under the further
provisions of this Section 5.3, or which otherwise was known to Purchaser prior to Closing,
(b) unless the valid claims for all such breaches collectively aggregate more than Five Hundred
Thousand and No/100 Dollars ($500,000), in which event the full amount of such claims shall be
actionable, and (c) unless written notice containing a description of the specific nature of such
breach shall have been given by Purchaser to Seller prior to the expiration of said nine (9) month
period and an action shall have been commenced by Purchaser against Seller within thirty (30) days
after the termination of the survival period provided for above in this Section 5.3.
Purchaser agrees to first seek recovery under any insurance policies or service contracts prior to
seeking recovery from Seller, and Seller shall not be liable to Purchaser if Purchaser’s claim is
satisfied from such insurance policies or service contracts. As used herein, the term “Cap” shall
mean the total aggregate amount of Two Million Five Hundred Thousand and No/100 Dollars
($2,500,000). In

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no event shall Seller’s aggregate liability to Purchaser for breach of any representation or
warranty of Seller in this Agreement or the certificate to be delivered by Seller at Closing
pursuant to Section 4.2(g) hereof exceed the amount of the Cap. Any written disclosure
made to Purchaser by Seller or any other entity prior to the end of the Inspection Period, and any
fact or matter which is within the actual knowledge of Purchaser shall constitute notice to
Purchaser of the fact or matter so disclosed or actually known, as applicable, and Purchaser shall
be deemed to have waived any claim against Seller on account of any inconsistency between such fact
or matter and any of the foregoing representations and warranties if Purchaser does not terminate
this Agreement prior to the end of the Inspection Period. In addition, any written disclosure made
to Purchaser by Seller or any other entity or any matter actually known to Purchaser following the
expiration of the Inspection Period and prior to the Closing which is materially inconsistent with
any of the foregoing representations and warranties shall constitute notice to Purchaser of the
matters disclosed, and Seller shall have no further liability on account of any such
inconsistencies if Purchaser waives such matter in writing and consummates the transaction
contemplated hereby. For the purposes of this Agreement, any disclosure by Seller of any matter
made in any of the Schedules or Exhibits to this Agreement shall be deemed a disclosure of such
matter in each and every Schedule or Exhibit to this Agreement. In the event that, prior to the
Closing, Purchaser receives actual notice of any information which indicates that any of the
representations and warranties (including any of the matters disclosed in any of the Schedules or
Exhibits hereto) are untrue, Purchaser shall promptly advise Seller in writing of such information.
Purchaser shall be deemed to have waived the inaccuracy of any such representation and warranty to
the extent Purchaser fails to notify Seller of Purchaser’s disapproval of such information pursuant
to the preceding sentence and thereafter consummates the transactions contemplated hereby. In the
event Purchaser waives in writing any representation or warranty, then Seller shall have no
liability under this Agreement for such representation or warranty to the extent waived.

     5.4 Covenants of Seller. Seller hereby covenants with Purchaser as follows:

          (a) From the Effective Date hereof until the Closing or earlier termination of this Agreement,
Seller shall use reasonable efforts to cause Manager to operate and maintain the Property in a
manner generally consistent with the manner in which it has been operated and maintained prior to
the date hereof.

          (b) Seller shall use reasonable efforts (but without obligation to incur any cost or expense)
to obtain and deliver to Purchaser prior to Closing, written estoppel certificates in the form of
Exhibit Q attached hereto and made a part hereof (or as otherwise may be specified in any
Lease) signed by each of the tenants under any Leases. A signed certificate from a tenant is
referred to herein as a “Tenant Estoppel.” Notwithstanding anything herein contained to the
contrary, Seller’s inability to obtain any Tenant Estoppel shall not constitute a default by Seller
hereunder. To the extent that any matters as to which Seller has made a representation or warranty
herein are encompassed within any Tenant Estoppel, such representation or warranty shall no longer
be effective and Purchaser shall have no rights in connection therewith.

          (c) A copy of any new lease or renewal or modification of any Lease which Seller wishes to
execute between the Effective Date and the date of Closing will be submitted to Purchaser for its
approval prior to execution by Seller. Purchaser agrees to notify Seller in

22

 

writing within five (5) business days after its receipt thereof of either its approval or
disapproval, including all tenant inducement costs and leasing commissions to be incurred in
connection therewith. In the event Purchaser informs Seller that Purchaser does not approve such
new Lease the renewal or modification of any existing Lease, which approval shall not be
unreasonably withheld, Seller shall not enter into such agreement. In the event Purchaser fails to
notify Seller in writing of its approval or disapproval within five (5) business days, such failure
shall be deemed the approval by Purchaser. At Closing, Purchaser shall reimburse Seller for any
tenant inducement costs, leasing commissions or other expenses, including legal fees, incurred by
Seller pursuant to a new Lease or a renewal or a modification approved (or deemed approved) by
Purchaser.

          (d) Seller and Manager shall have the right to make and accept reservations for use of the
Hotel’s rooms, banquet and restaurant facilities and meeting and convention facilities (and accept
cancellations of such Reservations) in the ordinary course of business at Seller’s customary rates
and charges and Purchaser agrees to honor and assume all such Reservations following Closing.

          (e) Seller shall not enter into any new management agreement or Operating Agreement with
respect to the Property nor shall Seller enter into any agreements modifying the Operating
Agreements, except (i) those which Manager is permitted to enter into under the terms of the Hotel
Management Agreement without the prior consent of Seller, or (ii) any such agreement or
modification will not bind Purchaser or the Property after the date of Closing or is subject to
termination on not more than thirty (30) days’ notice without penalty, or (iii) Seller has obtained
Purchaser’s prior written consent to such agreement or modification.

          (f) Seller shall not release or modify any warranties and guaranties, if any, except with the
prior written consent of Purchaser.

          (g) Seller shall maintain in full force and effect, and not cause or permit a default under
(with or without the giving of any required notice or lapse of time), the Management Agreement.

          (h) Seller shall cause to be paid prior to delinquency all ad valorem, occupancy and sales
taxes due and payable with respect to the Property or the operation of the Hotel.

     5.5 Representations and Warranties of Purchaser. Purchaser hereby represents and
warrants to Seller:

          (a) Purchaser has the full right, power and authority to purchase the Property as provided in
this Agreement and to carry out Purchaser’s obligations hereunder, and all requisite action
necessary to authorize Purchaser to enter into this Agreement and to carry out its obligations
hereunder have been, or by the Closing will have been, taken. The person signing this Agreement on
behalf of Purchaser is authorized to do so. The execution and delivery of, and the performance by
Purchaser of its obligations under this Agreement do not, and will not contravene, or constitute a
default under, any provision of applicable law or regulation or any agreement, judgment,
injunction, order, decree or other instrument binding upon Purchaser, or

23

 

result in the creation of any lien or other encumbrance on any asset of Purchaser. Purchaser
has not applied for or consented to the appointment of, or the taking of possession by, a receiver,
custodian, trustee or liquidator of itself or of all or a substantial part of its property,
admitted in writing its inability to pay its debts as they become due, made a general assignment
for the benefit of its creditors, filed a voluntary petition or commence a voluntary case or
proceeding under the Federal Bankruptcy Code (as now or hereafter in effect), been adjudicated a
bankrupt or insolvent, failed to controvert in a timely and appropriate manner, or acquiesced in
writing to, any petition filed against it in an involuntary case or proceeding under the Federal
Bankruptcy Code (as now or hereafter in effect), or taken any corporate or partnership action for
the purpose of effecting any of the foregoing.

          (b) There is no action, suit, arbitration, unsatisfied order or judgment, government
investigation or proceeding pending, or to Purchaser’s knowledge, threatened against Purchaser
which, if adversely determined, could individually or in the aggregate materially interfere with
the consummation of the transaction contemplated by this Agreement.

          (c) Purchaser has funds available to it (including cash, other liquid assets and debt
available for the within transaction) sufficient to pay the Purchase Price and otherwise fulfill
Purchaser’s obligations under this Agreement.

          (d) The execution, delivery and performance by Purchaser of this Agreement will not (i)
conflict with, or result in any breach or violation of or default (or give rise to any right of
termination, cancellation or acceleration) under any note, bond, indenture, lease, license, permit,
agreement or other instrument or obligation to which Purchaser is a party or by which it is or may
be bound, or (ii) violate any law, order, rule, regulation, judgment, order, decree, writ or
injunction applicable to Purchaser.

     5.6 Survival of Purchaser’s Representations and Warranties. The representation and
warranties of Purchaser set forth in Section 5.5(a) shall survive Closing and shall be a
continuing representation and warranty without limitation. All other representations and
warranties of Purchaser shall survive Closing for a period of nine (9) months.

     5.7 Covenants of Purchaser. Purchaser hereby covenants with Seller that Purchaser
shall, in connection with its investigation of the Property during the Inspection Period and
subject to Seller’s consent to any invasive testing (not to be unreasonably withheld), inspect the
Property for the presence of hazardous substances, and shall furnish to Seller copies of any
reports received by Purchaser in connection with any such inspection. Except for any claim
Purchaser may have for a breach of the representations and warranties of Seller contained in this
Agreement, Purchaser hereby assumes full responsibility for such inspections and irrevocably waives
any claim against Seller arising from the presence of hazardous substances on the Property.
Purchaser shall also furnish to Seller copies of any other reports received by Purchaser relating
to any other inspections of the Property conducted on Purchaser’s behalf, if any (including,
specifically, without limitation, any reports analyzing compliance of the Property with the
provisions of the Americans with Disabilities Act (“ADA”), 42 U.S.C. §12101, et
seq., if applicable).

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     5.8 Alcoholic Beverage Licenses. Purchaser acknowledges that there are various liquor
licenses associated with the operation of the Hotel. Purchaser represents and warrants to Seller
that it shall commence work and communicate with appropriate governmental agencies, including the
Virginia Alcoholic Beverage Control Board (the “Board”), for the issuance or reissuance of such
licenses (the “Reissued Licenses”) within five (5) business days after the date hereof, and shall
diligently pursue the obtaining of such licenses at Purchaser’s sole cost and expense. Purchaser
shall not impair any existing licenses or take any action to prevent Seller’s licenses from
retaining in full force and effect prior to the Closing, nor shall Purchaser take any action that
prevents Seller’s existing licenses from remaining in effect after closing if such continuation of
Seller’s licenses is required by law or if necessary, either by law or by business necessity, to
remain in effect subsequent to Closing, Seller shall allow its existing licenses to remain in
effect until the Reissued Licenses are obtained. Purchaser shall nevertheless diligently proceed
to obtain the Reissued Licenses, even if Seller and Purchaser thereby become co-licensees of the
Board for a period of time. In that event, if Seller so requests, Purchaser shall fully cooperate
and take all reasonably necessary measure to obtain Seller’s releases from such licenses.
Purchaser shall fully and completely indemnify and defend Seller and hold Seller harmless from any
and all liability, cost, damage, claim or expense of any kind which may arise, directly or
indirectly, out of the continued existence of Seller’s licenses subsequent to Closing. If any of
Seller’s licenses are required for liquor operations at the Hotel subsequent to Closing, such
circumstance in no way creates, or is intended to create, a relationship of agency, partnership or
joint venture between Seller and Purchaser for operations at the Hotel, including liquor operations
at the Hotel.

          Seller’s cooperation with respect to issuance or reissuance of the Reissued Licenses (i) shall
be at no material cost or expense to Seller, (ii) shall not expose Seller to any continuing
liability with respect to the operation of the Hotel or the sale of alcoholic beverages therefrom
after the Closing Date which would not be subject to indemnification from Purchaser, and (iii)
shall not obligate Seller to postpone the Closing other than in accordance with the provisions
hereof. In no event shall Seller be required to transfer to Purchaser any alcoholic beverage
inventory which is located at or held for use in the Hotel unless and until Purchaser has obtained
a valid and effective license entitling Purchaser to purchase, store and sell alcoholic beverages
at the Hotel. Any such transfer of any alcoholic beverage inventory shall be separately paid for
by Purchaser at Closing at Seller’s cost.

     5.9 Renovations. Seller and Purchaser acknowledge that certain renovation work
described in the Renovation Letter (the “Renovation Work”) is ongoing. Seller anticipates that the
Renovation Work will be completed prior to Closing. In the event that any Renovation Work is not
completed prior to Closing (the “Outstanding Renovation Work”), Purchaser shall complete such work
with Purchaser receiving a credit at Closing for the estimated amount (the “Estimated Amount”), as
agreed by Seller and Purchaser prior to Closing, to complete and pay for the Outstanding Renovation
Work. Purchaser shall provide Seller with a copy of all invoices incurred in connection with
Purchaser’s completion of the Outstanding Renovation Work. In the event that the actual cost to
complete the Outstanding Renovation Work is different than the Estimated Amount, Purchaser and
Seller settle the difference following Closing pursuant to Section 4.16.

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     5.10 Bulk Sale Requirements. Seller and Purchaser shall cooperate each with the other
to satisfy the requirements of the Virginia Uniform Commercial Code – Bulk Sales requirements, as
set forth in the Virginia Uniform Commercial Code Section 8.6 and following.

ARTICLE VI

DEFAULT

     6.1 Default by Purchaser. IF THE SALE IS NOT CONSUMMATED DUE TO ANY DEFAULT BY
PURCHASER HEREUNDER, THEN SELLER MAY TERMINATE THIS AGREEMENT AND RETAIN THE EARNEST MONEY AS
LIQUIDATED DAMAGES. THE PARTIES HAVE AGREED THAT SELLER’S ACTUAL DAMAGES, IN THE EVENT OF A
FAILURE TO CONSUMMATE THIS SALE DUE TO PURCHASER’S DEFAULT, WOULD BE EXTREMELY DIFFICULT OR
IMPRACTICABLE TO DETERMINE. AFTER NEGOTIATION, THE PARTIES HAVE AGREED THAT, CONSIDERING ALL THE
CIRCUMSTANCES EXISTING ON THE DATE OF THIS AGREEMENT, THE AMOUNT OF THE EARNEST MONEY IS A
REASONABLE ESTIMATE OF THE DAMAGES THAT SELLER WOULD INCUR IN SUCH EVENT. BY PLACING THEIR
INITIALS BELOW, EACH PARTY SPECIFICALLY CONFIRMS THE ACCURACY OF THE STATEMENTS MADE ABOVE AND THE
FACT THAT EACH PARTY WAS REPRESENTED BY COUNSEL WHO EXPLAINED, AT THE TIME THIS AGREEMENT WAS MADE,
THE CONSEQUENCES OF THIS LIQUIDATED DAMAGES PROVISION. THE FOREGOING IS NOT INTENDED TO LIMIT
PURCHASER’S INDEMNITY OBLIGATIONS UNDER OTHER SECTIONS HEREOF.

     SELLER:                                                                             PURCHASER:                                                                       

     6.2 Default by Seller. In the event that Seller breaches in any material respect any
of its obligations or representations or warranties contained in this Agreement, or fails to
consummate this Agreement for any reason other than Purchaser’s default or the permitted
termination of this Agreement by Seller or Purchaser as herein expressly provided, Purchaser shall
be entitled, as its sole remedy, either (a) to receive the return of the Earnest Money, which
return shall operate to terminate this Agreement and release Seller from any and all liability
hereunder; provided, however, if this Agreement is terminated by Purchaser pursuant to any
provision of this Agreement as a result of a breach of a representation, warranty or covenant of
Seller, then Seller shall be obligated upon demand to reimburse Purchaser for Purchaser’s actual
out-of-pocket inspection, financing and other costs related to Purchaser’s entering into this
Agreement, including, without limitation, Purchaser’s attorneys’ fees, but not to exceed $100,000,
or (b) to enforce specific performance of Seller’s obligation to execute the documents required to
convey the Property to Purchaser, it being understood and agreed that the remedy of specific
performance shall not be available to enforce any other obligation of Seller hereunder. Except as
provided above, Purchaser expressly waives its rights to seek damages in the event of Seller’s
default hereunder. Purchaser shall be deemed to have elected to terminate this Agreement and
receive back the Earnest Money if Purchaser fails to file suit for specific performance against
Seller in a court having jurisdiction in the county and state in which the Property is located, on
or before thirty (30) days following the date upon which Closing was to have occurred.

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     6.3 Liability of Purchaser. Except for obligations expressly assumed or agreed to be
assumed by Purchaser hereunder, Purchaser is not assuming any obligations of Seller or any
liability for claims arising out of any act, omission or occurrence which occurs, accrues or arises
prior to the Closing Date, and Seller hereby indemnifies and holds Purchaser harmless from and
against any and all claims, costs, penalties, damages, losses, liabilities and expenses (including
reasonable attorneys’ fees) that may at any time be incurred by Purchaser as a result of (i)
obligations of Seller not expressly assumed or agreed to be assumed by Purchaser hereunder, or (2)
acts, omissions or occurrences which occur, accrue or arise prior to the Closing Date. The
provisions of this Section 6.3 shall survive the Closing of the transaction contemplated hereby.

ARTICLE VII

RISK OF LOSS

     7.1 Minor Damage. In the event of loss or damage to the Property or any portion
thereof which is not “major” (as hereinafter defined), this Agreement shall remain in full force
and effect provided Seller performs any necessary repairs or, at Seller’s option, assigns to
Purchaser all of Seller’s right, title and interest to any claims and proceeds Seller may have with
respect to any casualty insurance policies or condemnation awards relating to the premises in
question. In the event that Seller elects to perform repairs upon the Property, Seller shall use
reasonable efforts to complete such repairs promptly and the date of Closing shall be extended a
reasonable time in order to allow for the completion of such repairs. If Seller elects to assign a
casualty claim to Purchaser, the Purchase Price shall be reduced by an amount equal to the
deductible amount under Seller’s insurance policy. Upon Closing, full risk of loss with respect to
the Property shall pass to Purchaser.

     7.2 Major Damage. In the event of a “major” loss or damage, either Seller or
Purchaser may terminate this Agreement by written notice to the other party, in which event the
Earnest Money shall be returned to Purchaser. If neither Seller nor Purchaser elects to terminate
this Agreement within ten (10) days after Seller sends Purchaser written notice of the occurrence
of major loss or damage, then Seller and Purchaser shall be deemed to have elected to proceed with
Closing, in which event Seller shall, at Seller’s option, either (a) perform any necessary repairs,
or (b) assign to Purchaser all of Seller’s right, title and interest to any claims and proceeds
Seller may have with respect to any casualty insurance policies or condemnation awards relating to
the premises in question. In the event that Seller elects to perform repairs upon the Property,
Seller shall use reasonable efforts to complete such repairs promptly and the date of Closing shall
be extended a reasonable time in order to allow for the completion of such repairs. If Seller
elects to assign a casualty claim to Purchaser, the Purchase Price shall be reduced by an amount
equal to the deductible amount under Seller’s insurance policy. Upon Closing, full risk of loss
with respect to the Property shall pass to Purchaser.

     7.3 Definition of “Major” Loss or Damage. For purposes of Sections 7.1 and
7.2, “major” loss or damage refers to the following: (i) loss or damage to the Property or
any portion thereof such that the cost of repairing or restoring the premises in question to a
condition substantially identical to that of the premises in question prior to the event of damage
would be, in the opinion of an architect selected by Seller and reasonably approved by Purchaser,
equal to or greater than Ten Million and No/100 Dollars ($10,000,000), and (ii) any loss due to a

27

 

condemnation which permanently and materially impairs the current use of the Property. If
Purchaser does not give notice to Seller of Purchaser’s reasons for disapproving an architect
within five (5) business days after receipt of notice of the proposed architect, Purchaser shall be
deemed to have approved the architect selected by Seller.

ARTICLE VIII

COMMISSIONS

     8.1 Brokerage Commissions. In the event the transaction contemplated by this
Agreement is consummated, but not otherwise, Seller has agreed to pay to Eastdil Realty Company,
L.L.C. (the “Broker”) at Closing a brokerage commission pursuant to a separate written agreement
between Seller and Broker. Except for the foregoing, Seller and Purchaser represent and warrant,
each to the other, that they have not engaged or acted through any other broker in connection with
this transaction. Each party agrees that should any claim be made for brokerage commissions or
finder’s fees by any broker or finder other than the Broker by, through or on account of any acts
of said party or its representatives, said party will indemnify and hold the other party free and
harmless from and against any and all loss, liability, cost, damage and expense in connection
therewith. The provisions of this paragraph shall survive Closing or earlier termination of this
Agreement.

ARTICLE IX

DISCLAIMERS AND WAIVERS

     9.1 No Reliance on Documents. Except as expressly stated herein, Seller makes no
representation or warranty as to the truth, accuracy or completeness of any materials, data or
information delivered by Seller to Purchaser in connection with the transaction contemplated
hereby. Purchaser acknowledges and agrees that all materials, data and information delivered by
Seller to Purchaser in connection with the transaction contemplated hereby are provided to
Purchaser as a convenience only and that any reliance on or use of such materials, data or
information by Purchaser shall be at the sole risk of Purchaser, except as otherwise expressly
stated herein. Without limiting the generality of the foregoing provisions, Purchaser acknowledges
and agrees that (a) any environmental or other report with respect to the Property which is
delivered by Seller to Purchaser shall be for general informational purposes only, (b) Purchaser
shall not have any right to rely on any such report delivered by Seller to Purchaser, but rather
will rely on its own inspections and investigations of the Property and any reports commissioned by
Purchaser with respect thereto, and (c) neither Seller, any affiliate of Seller nor the person or
entity which prepared any such report delivered by Seller to Purchaser shall have any liability to
Purchaser for any inaccuracy in or omission from any such report or in verbal communication.

     9.2 Disclaimers. EXCEPT AS EXPRESSLY SET FORTH IN THIS AGREEMENT, IT IS UNDERSTOOD
AND AGREED THAT SELLER IS NOT MAKING AND HAS NOT AT ANY TIME MADE ANY WARRANTIES OR REPRESENTATIONS
OF ANY KIND OR CHARACTER, EXPRESSED OR IMPLIED, WITH RESPECT TO THE PROPERTY, INCLUDING, BUT NOT
LIMITED TO, ANY WARRANTIES OR REPRESENTATIONS AS

28

 

TO HABITABILITY, MERCHANTABILITY, FITNESS FOR A PARTICULAR PURPOSE, TITLE (OTHER THAN SELLER’S
LIMITED WARRANTY OF TITLE TO BE SET FORTH IN THE DEED), ZONING, TAX CONSEQUENCES, LATENT OR PATENT
PHYSICAL OR ENVIRONMENTAL CONDITION, UTILITIES, OPERATING HISTORY OR PROJECTIONS, VALUATION,
GOVERNMENTAL APPROVALS, THE COMPLIANCE OF THE PROPERTY WITH GOVERNMENTAL LAWS, THE TRUTH, ACCURACY
OR COMPLETENESS OF THE PROPERTY DOCUMENTS OR ANY OTHER INFORMATION PROVIDED BY OR ON BEHALF OF
SELLER TO PURCHASER, OR ANY OTHER MATTER OR THING REGARDING THE PROPERTY. PURCHASER ACKNOWLEDGES
AND AGREES THAT UPON CLOSING SELLER SHALL SELL AND CONVEY TO PURCHASER AND PURCHASER SHALL ACCEPT
THE PROPERTY “AS IS, WHERE IS, WITH ALL FAULTS”, EXCEPT TO THE EXTENT EXPRESSLY PROVIDED OTHERWISE
IN THIS AGREEMENT. PURCHASER HAS NOT RELIED AND WILL NOT RELY ON, AND SELLER IS NOT LIABLE FOR OR
BOUND BY, ANY EXPRESSED OR IMPLIED WARRANTIES, GUARANTIES, STATEMENTS, REPRESENTATIONS OR
INFORMATION PERTAINING TO THE PROPERTY OR RELATING THERETO (INCLUDING SPECIFICALLY, WITHOUT
LIMITATION, PROPERTY INFORMATION PACKAGES DISTRIBUTED WITH RESPECT TO THE PROPERTY) MADE OR
FURNISHED BY SELLER, THE MANAGER OF THE PROPERTY, OR ANY REAL ESTATE BROKER OR AGENT REPRESENTING
OR PURPORTING TO REPRESENT SELLER, TO WHOMEVER MADE OR GIVEN, DIRECTLY OR INDIRECTLY, ORALLY OR IN
WRITING, UNLESS SPECIFICALLY SET FORTH IN THIS AGREEMENT. PURCHASER REPRESENTS TO SELLER THAT
PURCHASER HAS CONDUCTED, OR WILL CONDUCT PRIOR TO CLOSING, SUCH INVESTIGATIONS OF THE PROPERTY,
INCLUDING BUT NOT LIMITED TO, THE PHYSICAL AND ENVIRONMENTAL CONDITIONS THEREOF, AS PURCHASER DEEMS
NECESSARY TO SATISFY ITSELF AS TO THE CONDITION OF THE PROPERTY AND THE EXISTENCE OR NONEXISTENCE
OR CURATIVE ACTION TO BE TAKEN WITH RESPECT TO ANY HAZARDOUS OR TOXIC SUBSTANCES ON OR DISCHARGED
FROM THE PROPERTY, AND WILL RELY SOLELY UPON SAME AND NOT UPON ANY INFORMATION PROVIDED BY OR ON
BEHALF OF SELLER OR ITS AGENTS OR EMPLOYEES WITH RESPECT THERETO, OTHER THAN SUCH REPRESENTATIONS,
WARRANTIES AND COVENANTS OF SELLER AS ARE EXPRESSLY SET FORTH IN THIS AGREEMENT. OTHER THAN SUCH
REPRESENTATIONS, WARRANTIES AND COVENANTS OF SELLER AS ARE EXPRESSLY SET FORTH IN THIS AGREEMENT,
UPON CLOSING, PURCHASER SHALL ASSUME THE RISK THAT ADVERSE MATTERS, INCLUDING BUT NOT LIMITED TO,
CONSTRUCTION DEFECTS AND ADVERSE PHYSICAL AND ENVIRONMENTAL CONDITIONS, MAY NOT HAVE BEEN REVEALED
BY PURCHASER’S INVESTIGATIONS, AND EXCEPT PURSUANT TO THIS AGREEMENT PURCHASER, UPON CLOSING, SHALL
BE DEEMED TO HAVE WAIVED, RELINQUISHED AND RELEASED SELLER (AND SELLER’S OFFICERS, DIRECTORS,
SHAREHOLDERS, EMPLOYEES AND AGENTS) FROM AND AGAINST ANY AND ALL CLAIMS, DEMANDS, CAUSES OF ACTION
(INCLUDING CAUSES OF ACTION IN TORT), LOSSES, DAMAGES, LIABILITIES, COSTS AND EXPENSES (INCLUDING
ATTORNEYS’ FEES AND COURT COSTS) OF ANY AND EVERY KIND OR CHARACTER, KNOWN OR UNKNOWN, WHICH
PURCHASER MIGHT HAVE

29

 

ASSERTED OR ALLEGED AGAINST SELLER (AND SELLER’S OFFICERS, DIRECTORS, SHAREHOLDERS, EMPLOYEES
AND AGENTS) AT ANY TIME BY REASON OF OR ARISING OUT OF ANY LATENT OR PATENT CONSTRUCTION DEFECTS OR
PHYSICAL CONDITIONS, VIOLATIONS OF ANY APPLICABLE LAWS (INCLUDING, WITHOUT LIMITATION, ANY
ENVIRONMENTAL LAWS) AND ANY AND ALL OTHER ACTS, OMISSIONS, EVENTS, CIRCUMSTANCES OR MATTERS
REGARDING THE PROPERTY. PURCHASER AGREES THAT SHOULD ANY CLEANUP, REMEDIATION OR REMOVAL OF
HAZARDOUS SUBSTANCES OR OTHER ENVIRONMENTAL CONDITIONS ON THE PROPERTY BE REQUIRED AFTER THE DATE
OF CLOSING, SUCH CLEAN-UP, REMOVAL OR REMEDIATION SHALL BE THE RESPONSIBILITY OF AND SHALL BE
PERFORMED AT THE SOLE COST AND EXPENSE OF PURCHASER AND SELLER SHALL NOT BE LIABLE TO PURCHASER FOR
SUCH CLEAN-UP, REMOVAL OR REMEDIATION. AS PART OF THE PROVISIONS OF THIS SECTION 9.2, BUT
NOT AS A LIMITATION THEREON, PURCHASER HEREBY AGREES, REPRESENTS AND WARRANTS THAT THE MATTERS
RELEASED HEREIN ARE NOT LIMITED TO MATTERS WHICH ARE KNOWN OR DISCLOSED, AND PURCHASER HEREBY
WAIVES ANY AND ALL RIGHTS AND BENEFITS WHICH IT NOW HAS, OR IN THE FUTURE MAY HAVE CONFERRED UPON
IT, BY VIRTUE OF THE PROVISIONS OF FEDERAL, STATE OR LOCAL LAW, RULES OF REGULATIONS.

     9.3 Effect and Survival of Disclaimers. Seller and Purchaser acknowledge that the
compensation to be paid to Seller for the Property has been decreased to take into account that the
Property is being sold subject to the provisions of this Article IX. Seller and Purchaser
agree that the provisions of this Article IX shall survive Closing.

ARTICLE X

MISCELLANEOUS

     10.1 Confidentiality. Purchaser and its representatives shall hold in confidence all
data and information obtained with respect to Seller or its business, whether obtained before or
after the execution and delivery of this Agreement, and shall not disclose the same to others;
provided, however, that it is understood and agreed that Purchaser may disclose such data and
information to the employees, consultants, accountants and attorneys of Purchaser provided that
such persons agree in writing to treat such data and information confidentially. In the event this
Agreement is terminated or Purchaser fails to perform hereunder, Purchaser shall promptly return to
Seller any statements, documents, schedules, exhibits or other written information obtained from
Seller in connection with this Agreement or the transaction contemplated herein. It is understood
and agreed that, with respect to any provision of this Agreement which refers to the termination of
this Agreement and the return of the Earnest Money to Purchaser, such Earnest Money shall not be
returned to Purchaser unless and until Purchaser has fulfilled its obligation to return to Seller
the materials described in the preceding sentence. In the event of a breach or threatened breach
by Purchaser or its agents or representatives of this Section 10.1, Seller shall be
entitled to an injunction restraining Purchaser or its agents or representatives from disclosing,
in whole or in part, such confidential information. Nothing herein shall be construed as
prohibiting Seller from pursuing any other available remedy at law or in equity for such breach or
threatened breach. The provisions of this Section 10.1 shall survive Closing.

30

 

     10.2 Public Disclosure. Prior to Closing, any release to the public of information
with respect to the sale contemplated herein or any matters set forth in this Agreement will be
made only in the form approved by Purchaser and Seller and their respective counsel.
Notwithstanding the foregoing, it is acknowledged that Purchaser is, or is an affiliate of, a real
estate investment trust (the “REIT”), and the REIT has and will seek to sell shares to the general
public. Consequently, Purchaser shall have the right, subject to the provisions of this
Section 10.2, to disclose any information regarding the transaction contemplated by this
Agreement required by law as determined by Purchaser’s attorneys to satisfy disclosure and
reporting obligations of Purchaser or its affiliates, and in that regard, the parties acknowledge
that on or immediately after the Effective Date Purchaser shall file with the United Sates
Securities Exchange Commission information regarding the transaction contemplated by this
Agreement, provided that, with respect to any such disclosure (a) Purchaser shall not disclose
Colony Capital, LLC’s role as a sponsor of the Seller, unless such disclosure is required by law,
and (b) Purchaser shall not disparage, denigrate or release any adverse information regarding
Seller or Colony Capital, LLC. Purchaser shall provide to Seller, for review by Seller’s counsel,
at least one day prior to filing or release, a copy of any such release or filing. Seller and
Purchaser and their representatives are cautioned that United States securities laws restrict the
purchase and sale of securities by anyone who possesses non-public information about the issue of
such securities. Accordingly, neither Seller or any of its Affiliates nor its representatives may
buy or sell any of the securities of the Purchaser or any of its Affiliates so long as any of them
is in possession of any material non-public information about the Purchaser or any of its
Affiliates, including information contained in or derived from confidential information.

     10.3 Discharge of Obligations. The acceptance of the Deed by Purchaser shall be
deemed to be a full performance and discharge of every representation and warranty made by Seller
herein and every agreement and obligation on the part of Seller to be performed pursuant to the
provisions of this Agreement, except those which are herein specifically stated to survive Closing.

     10.4 Assignment. Purchaser may not assign its rights under this Agreement without
first obtaining Seller’s written approval, which approval may be given or withheld in Seller’s sole
discretion, except that Purchaser may assign all or any portion of its rights hereunder at Closing
to one or more Affiliates of Purchaser without the consent of Seller’ however, any such assignment
shall not relieve Purchaser of its obligations under this Agreement. Any transfer, directly or
indirectly, of any stock, partnership interest or other ownership interest in Purchaser without
Seller’s written approval, which approval may be given or withheld in Seller’s sole discretion,
shall constitute a default by Purchaser under this Agreement.

     10.5 Notices. Any notice pursuant to this Agreement shall be given in writing by (a)
personal delivery, or (b) nationally recognized overnight delivery service with proof of delivery,
or (c) United States Mail, postage prepaid, registered or certified mail, return receipt requested,
or (d) legible facsimile transmission sent to the intended addressee at the address set forth
below, or to such other address or to the attention of such other person as the addressee shall
have designated by written notice sent in accordance herewith, and shall be deemed to have been
given either at the time of personal delivery, or, in the case of expedited delivery service or
mail, as of the date of first attempted delivery at the address and in the manner provided herein,
or, in the case of facsimile transmission, as of the date of the facsimile transmission. Unless

31

 

changed in accordance with the preceding sentence, the addresses for notices given pursuant to
this Agreement shall be as follows:

	 	 	 	 	 
	 

	 	If to Seller:
	 	Dulles Airport Hotel, LLC
	 

	 	 	 	1999 Avenue of the Stars, Suite 1200
	 

	 	 	 	Los Angeles, California 90067
	 

	 	 	 	Attention: Joy Mallory
	 

	 	 	 	Telecopy: (310) 282-8808
	 
	 	 	 	 
	 

	 	with a copy to:
	 	Orrick, Herrington & Sutcliffe LLP
	 

	 	 	 	777 South Figueroa Street, Suite 3200
	 

	 	 	 	Los Angeles, California 90017
	 

	 	 	 	Attention: Michael A. McAndrews, Esq.
	 

	 	 	 	Telecopy: (213) 612-2499
	 
	 	 	 	 
	 

	 	If to Purchaser:
	 	Ashford Hospitality Limited Partnership
	 

	 	 	 	14185 Dallas Parkway, Suite 1100
	 

	 	 	 	Dallas, Texas 75254
	 

	 	 	 	Attention: David Brooks
	 

	 	 	 	Telecopy: (972) 490-9605
	 
	 	 	 	 
	 

	 	with a copy to:
	 	Akin Gump Strauss Hauer & Feld LLP
	 

	 	 	 	1700 Pacific Avenue, Suite 4100
	 

	 	 	 	Dallas, Texas 75201
	 

	 	 	 	Attention: Carl B. Lee, Esq.
	 

	 	 	 	Telecopy: (214) 969-4343

     10.6 Binding Effect. This Agreement shall not be binding in any way upon Seller
unless and until Seller shall execute and deliver the same to Purchaser.

     10.7 Modifications. This Agreement cannot be changed orally, and no executory
agreement shall be effective to waive, change, modify or discharge it in whole or in part unless
such executory agreement is in writing and is signed by the parties against whom enforcement of any
waiver, change, modification or discharge is sought.

     10.8 Tenant Notification Letter. Purchaser shall deliver to each Tenant a signed
statement acknowledging Purchaser’s receipt and responsibility for the Tenant’s security deposit
(to the extent delivered by Seller to Purchaser at Closing), if any, all in compliance with and
pursuant to the applicable provisions of applicable law.

     10.9 Calculation of Time Periods. Unless otherwise specified, in computing any period
of time described in this Agreement, the day of the act or event after which the designated period
of time begins to run is not to be included and the last day of the period so computed is to be
included, unless such last day is a Saturday, Sunday or legal holiday under the laws of the State
in which the Property is located, in which event the period shall run until the end of the next day
which is neither a Saturday, Sunday or legal holiday. The final day of any such period shall be
deemed to end at 5 p.m., local time at the Property.

32

 

     10.10 Successors and Assigns. The terms and provisions of this Agreement are to apply
to and bind the permitted successors and assigns of the parties hereto.

     10.11 Entire Agreement. This Agreement, including the Exhibits, contains the entire
agreement between the parties pertaining to the subject matter hereof and fully supersedes all
prior written or oral agreements and understandings between the parties pertaining to such subject
matter.

     10.12 Further Assurances. Each party agrees that it will without further
consideration execute and deliver such other documents and take such other action, whether prior or
subsequent to Closing, as may be reasonably requested by the other party to consummate more
effectively the purposes or subject matter of this Agreement. Without limiting the generality of
the foregoing, Purchaser shall, if requested by Seller, execute acknowledgments of receipt with
respect to any materials delivered by Seller to Purchaser with respect to the Property. The
provisions of this Section 10.12 shall survive Closing.

     10.13 Counterparts; Signatures. This Agreement may be executed in counterparts, and
all such executed counterparts shall constitute the same agreement. It shall be necessary to
account for only one such counterpart in proving this Agreement. Facsimile signatures on this
Agreement shall be same as original signatures for all purposes.

     10.14 Severability. If any provision of this Agreement is determined by a court of
competent jurisdiction to be invalid or unenforceable, the remainder of this Agreement shall
nonetheless remain in full force and effect.

     10.15 Applicable Law. THIS AGREEMENT IS PERFORMABLE IN THE STATE IN WHICH THE
PROPERTY IS LOCATED AND SHALL IN ALL RESPECTS BE GOVERNED BY, AND CONSTRUED IN ACCORDANCE WITH, THE
SUBSTANTIVE FEDERAL LAWS OF THE UNITED STATES AND THE LAWS OF SUCH STATE. SELLER AND PURCHASER
HEREBY IRREVOCABLY SUBMIT TO THE JURISDICTION OF ANY STATE OR FEDERAL COURT SITTING IN THE STATE IN
WHICH THE PROPERTY IS LOCATED IN ANY ACTION OR PROCEEDING ARISING OUT OF OR RELATING TO THIS
AGREEMENT AND HEREBY IRREVOCABLY AGREE THAT ALL CLAIMS IN RESPECT OF SUCH ACTION OR PROCEEDING
SHALL BE HEARD AND DETERMINED IN A STATE OR FEDERAL COURT SITTING IN THE STATE IN WHICH THE
PROPERTY IS LOCATED. PURCHASER AND SELLER AGREE THAT THE PROVISIONS OF THIS SECTION 10.15 SHALL
SURVIVE THE CLOSING OF THE TRANSACTION CONTEMPLATED BY THIS AGREEMENT.

     10.16 No Third Party Beneficiary. The provisions of this Agreement and of the
documents to be executed and delivered at Closing are and will be for the benefit of Seller and
Purchaser only and are not for the benefit of any third party (including, without limitation, Title
Company and Broker), and accordingly, no third party shall have the right to enforce the provisions
of this Agreement or of the documents to be executed and delivered at Closing.

     10.17 Exhibits. The following exhibits, which are attached to this Agreement, are
incorporated in and shall be deemed to be an integral part of this Agreement:

33

 

	 	 	 	 	 	 	 
	 

	 	(a)
	 	Exhibit A -
	 	Legal Description of the Land
	 
	 	 	 	 	 	 
	 

	 	(b)
	 	Exhibit B -
	 	Pending Actions
	 
	 	 	 	 	 	 
	 

	 	(c)
	 	Exhibit C -
	 	Lease Schedule
	 
	 	 	 	 	 	 
	 

	 	(d)
	 	Exhibit D -
	 	Operating Agreements Schedule
	 
	 	 	 	 	 	 
	 

	 	(e)
	 	Exhibit E
	 	Approvals
	 
	 	 	 	 	 	 
	 

	 	(f)
	 	Exhibit F
	 	Reservation Deposits
	 
	 	 	 	 	 	 
	 

	 	(g)
	 	Exhibit G
	 	Liquor Licenses
	 
	 	 	 	 	 	 
	 

	 	(h)
	 	Exhibit H
	 	Deed
	 
	 	 	 	 	 	 
	 

	 	(i)
	 	Exhibit I
	 	Bill of Sale
	 
	 	 	 	 	 	 
	 

	 	(j)
	 	Exhibit J
	 	Assignment and Assumption of Lease
	 
	 	 	 	 	 	 
	 

	 	(k)
	 	Exhibit K
	 	Assignment and Assumption of Operating Agreements,
	 

	 	 	 	 	 	Intangibles and Intellectual Property
	 
	 	 	 	 	 	 
	 

	 	(l)
	 	Exhibit L
	 	Notice to Tenants
	 
	 	 	 	 	 	 
	 

	 	(m)
	 	Exhibit M
	 	Intentionally Omitted
	 
	 	 	 	 	 	 
	 

	 	(n)
	 	 Exhibit N
	 	Intentionally Omitted
	 
	 	 	 	 	 	 
	 

	 	(o)
	 	Exhibit O
	 	FIRPTA Certificate
	 
	 	 	 	 	 	 
	 

	 	(p)
	 	Exhibit P
	 	Designation Agreement
	 
	 	 	 	 	 	 
	 

	 	(q)
	 	Exhibit Q
	 	Tenant Estoppel Form
	 
	 	 	 	 	 	 
	 

	 	(r)
	 	Exhibit R
	 	Intentionally Omitted
	 
	 	 	 	 	 	 
	 

	 	(s)
	 	Exhibit S
	 	Intentionally Omitted
	 
	 	 	 	 	 	 
	 

	 	(t)
	 	Exhibit T
	 	Notices of Violations
	 
	 	 	 	 	 	 
	 

	 	(u)
	 	Exhibit U
	 	Insurance Notices
	 
	 	 	 	 	 	 
	 

	 	(v)
	 	Exhibit V
	 	Environmental Matters

     10.18 Captions. References in this Agreement to “Section” are to the numbered
Sections herein. The section headings appearing in this Agreement are for convenience of reference
only and are not intended, to any extent and for any purpose, to limit or define the text of any
section or any subsection hereof.

34

 

     10.19 Construction. The parties acknowledge that the parties and their counsel have
reviewed and revised this Agreement and that the normal rule of construction to the effect that any
ambiguities are to be resolved against the drafting party shall not be employed in the
interpretation of this Agreement or any exhibits or amendments hereto.

     10.20 Termination of Agreement. It is understood and agreed that if either Purchaser
or Seller terminates this Agreement pursuant to a right of termination granted hereunder, such
termination shall operate to relieve Seller and Purchaser from all obligations under this
Agreement, except for such obligations as are specifically stated herein to survive the termination
of this Agreement.

     10.21 No Personal Liability of Seller. No member or manager of Seller, no officer,
director or partner of a member or manager of Seller, no disclosed or undisclosed principal of
Seller and no person in any way affiliated with Seller shall have any personal liability with
respect to this Agreement, any instrument delivered by Seller at the Closing or the transaction
contemplated hereby, nor shall the property of any such person or entity be subject to attachment,
levy, execution or other judicial process.

     10.22 Survival. The provisions of the following Sections of this Agreement shall
survive Closing and shall not be merged into the execution and delivery of the Deed: Sections
3.1; the last paragraph of Sections 4.2; 4.5; 4.7; 4.9;
4.10; 4.11; 4.12; 4.13; 5.3; 5.5, 5.6;
5.8, 5.9(a), 8.1; 9.3; 10.1; 10.8; 10.9;
10.12; and 10.16.

     10.23 Title Company’s Agreement. Title Company, as escrow agent, is executing this
Agreement to confirm its agreement to serve as escrow agent hereunder in accordance with the terms
set forth in this Agreement and the separate escrow agreement referenced in Section 1.6.

[Signature page follows immediately]

35

 

     IN WITNESS WHEREOF, the parties hereto have duly executed this Agreement as of the Effective
Date.

SELLER:

DULLES AIRPORT HOTEL, LLC,

a Delaware limited liability company

By: /s/ Mark M. Hedstrom

Its:
                                                            

PURCHASER:

Ashford Hospitality Limited Partnership,

a Delaware limited partnership

By: Ashford OP General Partner LLC

Its: General Partner

By: /s/ David Brooks

Name: David Brooks, Vice President

Title Company, as Escrow Agent:

First American Title Insurance Company

By:
                                                            

Its:
                                                            

S-1

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