Document:

June 9, 2005

U.S. Bank National Association

Corporate Trust Services-SFS

One Federal Street, 3rd Floor

Boston, Massachusetts 02110

 

Delaware Trust Company, National Association

300 Delaware Avenue, 9th Floor

Wilmington, Delaware 19801

	
            Re:
 	
            The National Collegiate Student Loan Trust 2005-2
 Back-up Administration Agreement
 

Ladies and Gentlemen:

In connection with the issuance by The National Collegiate Student Loan Trust 2005-2 (the “Trust”) and NCF Grantor Trust 2005-2 of student loan asset backed notes and certificates on June 9, 2005 pursuant to the Indenture dated as of June 1, 2005 (the “Indenture”) between the Trust and U.S. Bank National Association (“U.S. Bank”) and the Grantor Trust Agreement dated as of June 9, 2005 between The National Collegiate Funding LLC and U.S. Bank, respectively, this letter serves as the Back-up Administration Agreement (the “Back-up Agreement”) and amends and supplements the Administration Agreement dated as of June 9, 2005 (the “Administration Agreement”) among the Trust, Delaware Trust Company, National Association, U.S. Bank and First Marblehead Data Services, Inc. (“FMDS”) as set forth below.

Capitalized terms used and not otherwise defined herein shall have the meanings assigned to such terms in the Administration Agreement.  In the event of the resignation or removal of FMDS as Administrator pursuant to Section 8 of the Administration Agreement, U.S. Bank shall assume the duties required to be performed by FMDS as Administrator under the Administration Agreement; provided that U.S. Bank shall not under any circumstances be responsible for any representations and warranties or for any payment, guarantee and indemnity obligations of FMDS as the Administrator, in each case, under the Administration Agreement, any other Trust Related Agreements or the Grantor Trust Related Agreements or for any liability incurred by FMDS as the Administrator prior to the date of the assumption by U.S. Bank of the obligations of the Administrator under the Administration Agreement.
Notwithstanding the foregoing, with the consent of the Owner Trustee, U.S. Bank, if it is unwilling or unable to so act, may designate a successor Administrator to be appointed pursuant to the provisions of Section 8 of the Administration Agreement, subject to the satisfaction of the conditions set forth in Section 8(e) and (f).  As compensation for the performance of U.S. Bank’s obligations under this Back-up Agreement, U.S. Bank shall be entitled to (i) $10,000 payable by the Trust on the date of this Back-up Agreement and (ii) a monthly fee of $1,000 payable by the Trust on each Distribution Date pursuant to section 8.02(d), first of the Indenture until such time as U.S. Bank begins performing FMDS’ duties as Administrator under the Administration Agreement.  In the event that FMDS resigns or is removed as Administrator and U.S. Bank begins performing FMDS’ 

 

 

duties as Administrator under the Administration Agreement, U.S. Bank shall be compensated as the Administrator in accordance with the Administration Agreement.

U.S. Bank will be subject to all of the terms and conditions of the Administration Agreement in so far as such terms and conditions apply to U.S. Bank’s duties as set forth above.  In the performance or non-performance of its duties contemplated by this Back-up Agreement, U.S. Bank shall be subject to the same standard of care as the Administrator under the Administration Agreement and shall be entitled to the same rights, privileges, protections, immunities and benefits given to the Administrator under the Administration Agreement.  In no event will U.S. Bank be responsible for the obligations of the Administrator or be responsible for any actions, omissions or malfeasance of the Administrator under the Administration Agreement, the Trust Related Agreements and the Grantor Trust Related Agreements prior to the assumption by U.S. Bank of the obligations of the Administrator under
the Administration Agreement.

In order to facilitate the performance of U.S. Bank’s duties under this Back-up Agreement, FMDS will make all files, systems and employees available to U.S. Bank.  Without limiting the generality of the foregoing, FMDS agrees to cooperate with U.S. Bank (or its designee) to facilitate the orderly transfer of its duties under the Administration Agreement, including without limitation, notifying the Servicers, the Custodians, their collection agents and other appropriate parties of the transfer of the administrator function and providing (or causing the Servicers to provide) U.S. Bank with all documents and records in electronic or other form reasonably requested by U.S. Bank to enable U.S. Bank or its designee to assume the Administrator’s functions under the Administration Agreement, the Trust Related Agreements and the Grantor Trust Related Agreements (including without
limitation such information relating to Defaulted Student Loans) and shall transfer (and cause any collection agent to transfer) to the Indenture Trustee for deposit into the TERI Pledge Fund for the benefit of the Trust all monies received by it with respect to the Defaulted Student Loans.  Subject to the foregoing, U.S. Bank will be required to begin performing its duties under this Back-up Agreement within 30 days of receiving notice of FMDS’ resignation or removal as Administrator under the Administration Agreement (or, if later, the effective date of the resignation or removal).  Out of pocket expenses incurred by U.S. Bank in connection with the transition of services hereunder shall be borne by FMDS.  To the extent that such expenses are not paid by FMDS, such expenses shall be paid by the Trust pursuant to the Indenture.

The provisions of Section 17 of the Administration Agreement are incorporated herein by reference and shall apply to this Back-up Agreement as they apply to the Administration Agreement.

 

 

Please evidence your agreement with the terms set forth herein by signing this letter below.

 

	
             
 	
             
 	
             
 	
             
 	
             
 	
             
 	
            Sincerely,

 
 
	
             
 	
             
 	
             
 	
             
 	
             
 	
             
 	
            THE NATIONAL COLLEGIATE STUDENT LOAN TRUST 2005-2
 
	
             
 	
             
 	
             
 	
             
 	
             
 	
             
 	
             
 	
             
 	
             
 	
             
 	
             
 	
             
 	
             
 	
             
 
	
             
 	
             
 	
             
 	
             
 	
             
 	
             
 	
            By:
 	
            DELAWARE TRUST COMPANY, NATIONAL ASSOCIATION, not in its individual capacity but solely as Owner Trustee

 
 
	
             
 	
             
 	
             
 	
             
 	
             
 	
             
 	
             
 	
            By:
 	
            
/s/ Sterling C. Correia
 
 
	
             
 	
             
 	
             
 	
             
 	
             
 	
             
 	
             
 	
            Name:
 	
            Sterling C. Correia
 
	
             
 	
             
 	
             
 	
             
 	
             
 	
             
 	
             
 	
            Title:
 	
            Vice President
 
	
             
 	
             
 	
             
 	
             
 	
             
 	
             
 	
             
 	
             
 	
             
 
	
             
 	
             
 	
             
 	
             
 	
             
 	
             
 	
            FIRST MARBLEHEAD DATA SERVICES, INC.

 
 
	
             
 	
             
 	
             
 	
             
 	
             
 	
             
 	
             
 	
             
 	
             
 
	
             
 	
             
 	
             
 	
             
 	
             
 	
             
 	
             
 	
            By:
 	
            
/s/ Stephen Anbinder
 
 
	
             
 	
             
 	
             
 	
             
 	
             
 	
             
 	
             
 	
            Name:
 	
            Stephen Anbinder
 
	
             
 	
             
 	
             
 	
             
 	
             
 	
             
 	
             
 	
            Title:
 	
            President

 
 
	
             
 	
             
 	
             
 	
             
 	
             
 	
             
 	
            THE NATIONAL COLLEGIATE FUNDING LLC

 
 
	
             
 	
             
 	
             
 	
             
 	
             
 	
             
 	
            By:
 	
            GATE Holdings, Inc., Member

 
 
	
             
 	
             
 	
             
 	
             
 	
             
 	
             
 	
             
 	
            By:
 	
            
/s/ Stephen Anbinder
 
 
	
             
 	
             
 	
             
 	
             
 	
             
 	
             
 	
             
 	
            Name:
 	
            Stephen Anbinder
 
	
             
 	
             
 	
             
 	
             
 	
             
 	
             
 	
             
 	
            Title:
 	
            President
 

 

 

 

 

	
            ACCEPTED AND AGREED:
 
	
             
 
	
             
 
	
            DELAWARE TRUST COMPANY, NATIONAL ASSOCIATION, not in its individual capacity but solely as Owner Trustee
 
	
             

 

By: /s/ Sterling C. Correia
 
	
            Name: Sterling C. Correia
 
	
            Title: Vice President
 
	
             
 
	
             
 
	
            U.S. BANK NATIONAL ASSOCIATION
 
	
             
 
	
             
 
	
            By: /s/ Vaneta L. Bernard
 
	
            Name: Vaneta I. Bernard
 
	
            Title: Vice PresidentSTRUCTURING ADVISORY AGREEMENT

STRUCTURING ADVISORY AGREEMENT (the “Agreement”), dated as of June 9, 2005, between The National Collegiate Student Loan Trust 2005-2, a Delaware statutory trust (the “Trust”), and The First Marblehead Corporation (the “Advisor”).

1.          Appointment.  The Trust hereby appoints the Advisor and the Advisor hereby agrees to act, as structuring advisor to the Trust in connection with the Trust’s issuance of its Student Loan Asset Backed Notes (the “Notes”) pursuant to that certain Indenture (the “Indenture”), dated as of June 1, 2005, between the Trust and U.S. Bank National Association, as Indenture Trustee, under the terms and conditions set forth herein.  Capitalized terms not otherwise defined herein shall have the meanings set forth in the Indenture and the Trust Agreement dated as of June 9, 2005 by and among The National Collegiate Funding LLC, Delaware Trust Company, National Association and
The Education Resources Institute, Inc.

	2.1        Consulting Services.  The Advisor shall provide the Trust with the following services:

(i)         Advise the Trust with respect to the structuring of the Notes and the related transactions;

(ii)         Engage, coordinate and evaluate the efforts of the service providers to the Trust, including without limitation, program lenders, consumer and securitization lawyers, accountants and auditors, trustees and providers of loan servicing, collection and origination services;

(iii)        Monitor the transmission of loan data between borrower, participating school, loan originator and program lender; and

(iv)        Work with potential financing sources, rating agencies and financial guaranty insurers, utilizing proprietary cash flow modeling, so as to optimize the economics of securitization.

2.2        Limitations on the Advisor’s Powers.  Notwithstanding anything herein to the contrary, the Advisor’s responsibilities are consultative only, and the Advisor shall have no power to take any action on behalf of the Trust, or to cause the Trust to be responsible for taking any action.

3.          Compensation of Advisor.  As compensation for the performance of the Advisor’s obligations under this Agreement and as reimbursement for its expenses related thereto, the Advisor shall be entitled to a Structuring Advisory Fee payable pursuant to the priorities set forth in the Indenture and the Trust Agreement as follows:

3.1        8.50% of the outstanding principal balance of the Financed Student Loans as of the Closing Date payable on the Closing Date and 9.00% of the Subsequent Student Loans acquired by the Trust during the Funding Period payable on the date of such purchase; and

 

 

3.2       An amount payable on each Distribution Date at a rate equal to 1/12 of 0.15% of the aggregate outstanding principal balance of the Financed Student Loans owned by the Trust as of the related Determination Date for the prior Distribution Date (and in the case of the payment of such amount on the first Distribution Amount as of the Cutoff Date) pursuant to the priorities set forth in the Indenture and the Trust Agreement.  To the extent that any payment is not made when due, all accrued and unpaid amounts shall bear interest at a rate equal to One-Month LIBOR plus 1.50%, which will be reset in the same manner as the Applicable Index for the Class A Notes under the Indenture.

4.          Liability.  The Advisor is not and never shall be liable to any creditor of the Trust.  In addition, the Advisor will not be culpable for and will have no liability to the Trust for or with respect to any and all losses, claims, damages or liabilities, joint or several, of the Trust incurred in connection with the Advisor’s performance of the services described in this Agreement, except to the extent that any such loss, claim, damage or liability is found in a final judgment by a court of competent jurisdiction to have resulted from the Advisor’s gross negligence, bad faith or willful misconduct, or a material breach of this Agreement.  The exculpation of the Trust under this paragraph shall be in addition to any liability which the Trust may otherwise have, shall
survive any termination of this Agreement, and shall be binding upon and extend to the benefit of any successors, assigns and representatives of the Trust and the Advisor.

5.          Assignment.  This Agreement shall be binding upon and inure to the benefit of the parties’ successors and permitted assigns.  However, neither this Agreement nor any of the rights of the parties hereunder may be transferred or assigned by either party hereto, except that (i) the Trust may assign its rights hereunder to the Indenture Trustee and (ii) the Advisor may assign its rights and obligations hereunder to any affiliated person or entity.  Any attempted transfer or assignment in violation of this Section 5 shall be void.

6.          Relationship of the Parties.  Nothing contained in this Agreement is intended or is to be construed to constitute the Advisor and the Trust as partners or joint venturers or either party as an employee of the other party.  Neither party hereto shall have any express or implied right or authority to assume or create any obligations on behalf of or in the name of the other party or to bind the other party to any contract, agreement or undertaking with any third party.  The services to be performed by the Advisor hereunder are consultation services only.  The Trust shall at all times be free to accept or reject the advice rendered by the Advisor hereunder in its sole discretion.

7.          Limitation of Liability of Owner Trustee.  Notwithstanding anything contained herein to the contrary, this instrument has been executed by Delaware Trust Company, National Association, not in its individual capacity but solely in its capacity as Owner Trustee of the Trust, and in no event shall Delaware Trust Company, National Association in its individual capacity or any beneficial owner of the Trust have any liability for the representations, warranties, covenants, agreements or other obligations of the Trust hereunder, as to all of which recourse shall be had solely to the assets of the Trust.  For all purposes of this Agreement, in the performance of any duties or obligations of the Trust hereunder, the Owner Trustee shall be subject to, and entitled to the benefits of, the
terms and provisions of Articles VIII, IX and X of the Trust Agreement.

 

 

 

	
            8.
 	
            Miscellaneous.
 

8.1        Amendment and Waivers.  This Agreement may be amended or waived only by a writing signed by both parties, and then such consent shall be effective only in the specific instance and for the specific purpose for which given.

8.2        Notices.  All notices and other communications provided for herein shall be dated and in writing and shall be deemed to have been duly given when delivered, if delivered personally or sent by telecopy, or when mailed, if sent by registered or certified mail, return receipt requested, postage prepaid.

	
            (i)
 	
            to the Trust at:

 
 
	
             
 	
            c/o Delaware Trust Company, National Association 
 
	
             
 	
            300 Delaware Avenue, 9th Floor
 
	
             
 	
            Wilmington, Delaware 19801
 
	
             
 	
            Attention:  Mr. Sterling Correia
 
	
             
 	
             
 
	
            (ii)
 	
            to the Advisor at:

 
 
	
             
 	
            The First Marblehead Corporation
 
	
             
 	
            230 Park Avenue 
 
	
             
 	
            New York, New York 10169
 
	
             
 	
            Attention:  Mr. Rob Baron

 
 
	
             
 	
            with a copy to: 

 
 
	
             
 	
            The First Marblehead Corporation
 
	
             
 	
            The Prudential Tower
 
	
             
 	
            800 Boylston Street - 34th Floor
 
	
             
 	
            Boston, MA 02199-8157
 
	
             
 	
            Attention:  Mr. Richard P. Zermani
 

 

or at such other address as any party shall have specified by notice in writing to the others.

8.3        Effectiveness of Agreement; Entire Agreement.  The terms of this Agreement shall become effective upon the issuance of the Notes.  This Agreement contains the entire agreement between the parties hereto and supersedes all prior agreements and understandings, oral and written, between the parties hereto with respect to the subject matter hereof.

8.4        Section Headings.  The section headings contained herein are included for convenience of reference only and shall not constitute a part of this Agreement for any other purpose.

8.5        Counterparts.  This Agreement may be executed in counterparts, each of which shall be deemed to be an original and all of which together shall be deemed to be one and the same instrument.

 

 

8.6        Applicable Law.  This Agreement shall be governed by, and construed in accordance with, the laws of the State of New York applicable to contracts made and to be performed entirely within such State, without giving effect to conflicts of laws principles thereof (other than Section 5-1401 of the New York General Obligations Law).

8.7        Severability.  Any section, clause, sentence, provision, subparagraph or paragraph of this Agreement held by a court of competent jurisdiction to be invalid, illegal or ineffective shall not impair, invalidate or nullify the remainder of this Agreement, but the effect thereof shall be confined to the section, clause, sentence, provision, subparagraph or paragraph so held to be invalid, illegal or ineffective.

8.8        No Petition.  The parties hereto will not at any time institute against the Trust any bankruptcy proceeding under any United States federal or State bankruptcy or similar law in connection with any obligations of the Trust under any Transaction Document as defined in the Indenture.

[Signature Pages Follow]

 

 

IN WITNESS WHEREOF, the parties hereto have executed this Structuring Advisory Agreement as of the date first above written.

 

	
             
 	
             
 	
             
 	
             
 	
             
 	
             
 	
            THE NATIONAL COLLEGIATE 

STUDENT LOAN TRUST 2005-2

 
 
	
             
 	
             
 	
             
 	
             
 	
             
 	
             
 	
             
 	
             
 	
             
 	
             
 	
             
 	
             
 	
             
 	
             
 
	
             
 	
             
 	
             
 	
             
 	
             
 	
             
 	
            By:
 	
            DELAWARE TRUST COMPANY, NATIONAL ASSOCIATION, not in its individual capacity but solely as Owner Trustee

 
 
	
             
 	
             
 	
             
 	
             
 	
             
 	
             
 	
             
 	
            By:
 	
            
/s/ Sterling C. Correia
 
 
	
             
 	
             
 	
             
 	
             
 	
             
 	
             
 	
             
 	
            Name:
 	
            Sterling C. Correia
 
	
             
 	
             
 	
             
 	
             
 	
             
 	
             
 	
             
 	
            Title:
 	
            Vice President
 
	
             
 	
             
 	
             
 	
             
 	
             
 	
             
 	
             
 	
             
 	
             
 
	
             
 	
             
 	
             
 	
             
 	
             
 	
             
 	
            THE FIRST MARBLEHEAD CORPORATION

 
 
	
             
 	
             
 	
             
 	
             
 	
             
 	
             
 	
             
 	
             
 	
             
 
	
             
 	
             
 	
             
 	
             
 	
             
 	
             
 	
             
 	
            By:
 	
            
/s/ John A. Hupalo
 
 
	
             
 	
             
 	
             
 	
             
 	
             
 	
             
 	
             
 	
            Name:
 	
            John A. Hupalo
 
	
             
 	
             
 	
             
 	
             
 	
             
 	
             
 	
             
 	
            Title:
 	
            Executive Vice President

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