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Exhibit 10.11    
  

 
 

SLM Corporation
  EMPLOYEE STOCK OPTION PLAN    
  

	1.
	PURPOSE

        This
Employee Stock Option Plan (the "Plan") is intended to enable SLM Corporation (formerly USA Education, Inc., renamed on May 17, 2002), a Delaware corporation to grant
Awards to broad classes of employees of SLM Corporation and its subsidiaries and affiliates and other key personnel, thereby helping to retain and motivate such individuals, and to encourage the
judgment, initiative and efforts of such individuals by further aligning their interests with those of the stockholders of the Corporation. 

	2.
	DEFINITIONS

        "Awards"
means the benefits or arrangements authorized under this Plan, which are Stock Options and Performance Stock. 

        "Board
of Directors" means the Board of Directors of SLM Corporation 

        "Committee"
means the Board of Directors and/or a committee of the Board of Directors acting pursuant to its authorization to administer this Plan under Section 4. 

        "Common
Stock" means SLM Corporation's common stock, par value $.20, as presently constituted, subject to adjustment, and including other securities, as provided in Section 8. 

        "Corporation"
means SLM Corporation and its Subsidiaries and affiliates, unless the context requires otherwise. 

        "Performance
Stock" means an award of shares of Common Stock the grant, issuance, retention and/or vesting of which shall be subject to such performance conditions and to such further
terms and conditions as the Committee deems appropriate. 

        "Subsidiary"
means any joint venture, corporation, partnership or other entity as to which the Corporation, whether directly or indirectly, has more than 50% of the (i) voting
rights or (ii) rights to capital or profits, and whose employees have been designated by the Committee as eligible to participate in the Plan. 

        "Stock
Options" or "Options" means a right to purchase a number of shares of Common Stock at an exercise price, at such times and on such terms and conditions as are specified in or
determined pursuant to an agreement evidencing an Award. Stock Options granted pursuant to this Plan are non-qualified stock options and are not Incentive Stock Options, as defined in
Section 422 of the Internal Revenue Code of 1986, as amended (the "Code"). 

	3.
	COMMON
STOCK SUBJECT TO THE PLAN 

        Subject
to adjustment as provided in Section 8, the maximum number of shares of Common Stock which may be issued pursuant to this Plan shall not exceed 21,000,000. Shares issued
under this Plan may be authorized and unissued shares of Common Stock or shares of Common Stock reacquired by SLM Corporation. For purposes of this Section 3, the aggregate number of Shares
issued under this Plan at any time shall equal only the number of Shares actually issued upon exercise or settlement of an Award and not returned to the Corporation upon cancellation, expiration or
forfeiture of an Award or in payment or satisfaction of the purchase price, exercise price or tax withholding obligation of an Award. The number of shares of Common Stock issued upon the exercise of
"replacement options", i.e. Options granted to purchase a number of shares of Common Stock equal to the number of shares of Common Stock used to exercise an underlying Stock Option (either shares
previously owned or shares acquired pursuant to the exercise of the underlying Option and sold in order to exercise e.g., 

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such as in a so-called "cashless exercise"), shall not reduce the aggregate number of shares authorized under the Plan. 

	4.
	ADMINISTRATION
OF THE PLAN 

        The
Plan shall be administered by the Board of Directors and/or by a Committee of the Board of Directors of SLM Corporation, as appointed from time to time by the Board of Directors. The
Board of Directors shall fill vacancies on and from time to time may remove or add members to the Committee. Notwithstanding the foregoing, unless otherwise restricted by the Board of Directors, the
Committee may appoint one or more separate committees (any such committee, a "Subcommittee") composed of one or more directors of SLM Corporation (who may, but need not, be members of the Committee)
and may delegate to any such Subcommittee(s) the authority to grant Awards under the Plan to Eligible Employees, to determine all terms of such Awards, and/or to administer the Plan or any aspect of
it. Any action by any such Subcommittee within the scope of such delegation shall be deemed for all purposes to have been taken by the Committee. The Subcommittee's authority to grant Awards is
limited in the same manner as provided for in the administration of the Corporation's Management Incentive Plan. 

        Subject
to the express provisions of this Plan, the Committee shall be authorized and empowered to do all things necessary or desirable in connection with the administration of this
Plan, including, without limitation: (a) to prescribe, amend and rescind rules and regulations relating to this Plan and to define terms not otherwise defined herein; (b) to determine
which persons are Eligible Employees (as defined in Section 5 hereof), to which of such Eligible Employees, if any, an Award shall be granted hereunder; (c) to determine the number of
shares of Common Stock subject to an Award and the exercise or purchase price of shares subject to a Stock Option; (d) to establish and verify the extent of satisfaction of any conditions to
exercisability or vesting of an Award, (e) to waive conditions to and/or accelerate exercisability or vesting of an Award, either automatically upon the occurrence of specified events
(including in connection with a change of control of SLM Corporation) or otherwise in its discretion; (f) to prescribe and amend the terms of an Award made under this Plan (which need not be
identical); (g) to determine whether, and the extent to which, adjustments are required pursuant to Section 8 hereof; (h) to interpret and construe this Plan, any rules and
regulations under the Plan and the terms and conditions of any Award granted hereunder, and to make exceptions to any such provisions in good faith and for the benefit of the Corporation; and
(i) to make all other determinations deemed necessary or advisable for the administration of the Plan. The Committee shall act pursuant to a majority vote or unanimous written consent. 

        All
decisions, determinations and interpretations by the Committee regarding the Plan, any rules and regulations under the Plan and the terms and conditions of any Award granted
hereunder, shall be final and binding on all Eligible Employees and recipients of Awards. The Committee shall consider such factors as it deems relevant, in its sole and absolute discretion, to making
such decisions, determinations and interpretations including, without limitation, the recommendations or advice of any officer or other employee of the Corporation and such attorneys, consultants and
accountants as it may select. 

	5.
	ELIGIBLE
EMPLOYEES 

        Any
person who is an employee of the Corporation, a director of a Subsidiary, a prospective employee, consultant or advisor of the Corporation shall be eligible (an "Eligible Employee")
to be considered for the grant of an Award hereunder unless the grant of an Award to such person would require the Plan to be approved by stockholders of SLM Corporation under Rule 312.03(a) of
the rules of the New York Stock Exchange. 

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	6.
	GRANT,
TERMS AND CONDITIONS OF OPTIONS 

        Options
may be granted at any time and from time to time prior to the termination of the Plan to Eligible Employees. Each Option agreement shall contain provisions regarding
(a) the number of Shares which may be issued upon exercise of the Option, (b) the purchase price of the Shares and the means of payment for the Shares, (c) the term of the Option,
(d) such terms and conditions of exercise as may be determined from time to time by the Committee, (e) restrictions on the transfer of the Option and forfeiture provisions, and
(f) such further terms and conditions, in each case not inconsistent with the Plan as may be determined from time to time by the Committee. Options granted pursuant to the Plan need not be
identical but each Option shall be subject to the following terms and conditions: 

        (a)    Option Grants:    The Committee, on behalf of the Corporation, is authorized under
this Plan to grant an Option or provide for the grant of an Option, either automatically or in the discretion of the Committee, upon the occurrence of specified events, including, without limitation,
the achievement of performance goals or the satisfaction of an event or condition within the control of the recipient of the Option or within the control of others. 

        (b)    Price:    The exercise price for each Option shall be established by the
Committee. The exercise price shall not be less than the fair market value of the Common Stock on the date of grant of the Option, except that the Committee may specifically provide that the exercise
price of an Option may be higher or lower in the case of an Option granted to employees of a company acquired by the Corporation in assumption and substitution of Options held by such employees at the
time such company is acquired. Unless the Committee shall specify otherwise, for purposes of this Plan the term "fair market value" shall mean, as of any date, the closing price for a Share reported
for that date on the consolidated tape for securities listed on the New York Stock Exchange or, if no Shares traded on the New York Stock Exchange on the date in question, then for the next preceding
date for which Shares traded on the New York Stock Exchange. The exercise price shall be paid in such form of consideration as the Committee in its discretion shall specify, which may but need not
include, e.g., in cash, by payment under an arrangement with a broker where payment is made pursuant to an irrevocable direction to the broker to deliver all or part of the proceeds from the sale of
the Option shares to the Corporation, by the surrender of shares of Common Stock owned for at least six months by the Option holder exercising the Option and having a fair market value on the day
preceding the date of exercise equal to the Option price, or by any combination of the foregoing. 

        (c)    Duration and Exercise or Termination of Option:    Each Option shall be
exercisable in such manner and at such times as the Committee shall determine. The Committee may specify that Options granted under this Plan shall become exercisable at such time and in such
installments during the period prior to the expiration of the Option's term as determined by the Committee in its sole discretion. The Committee shall have the right to make the timing of exercise of
any Option granted under the Plan subject to such performance requirements as deemed appropriate by the Committee. At any time after the grant of an Option the Committee may, in its sole discretion,
reduce or eliminate any restrictions surrounding the Participant's right to exercise all or part of the Option. Each Option granted must expire within a period of not more than ten (10) years
from the grant date. 

        (d)    Suspension or Termination of Option:    The Chief Executive Officer, any Executive
Vice President, the Chief Financial Officer, the Treasurer and the General Counsel of SLM Corporation (any such person, an "Authorized Officer") each may provide at any time (including after a notice
of exercise has been delivered) and from time to time that the right to exercise an Option may be suspended pending a determination by an Authorized Officer or the Committee on whether an Eligible
Employee to whom the Option was granted or an Option holder has committed an act of embezzlement, fraud, dishonesty, nonpayment of any obligation owed to the Corporation, breach of fiduciary duty or
deliberate disregard of Corporation rules; has made an unauthorized disclosure of any 

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Corporation trade secret or confidential information; has engaged in any conduct constituting unfair competition; has induced any customer of the Corporation to breach a contract with the Corporation
or any principal for whom the Corporation acts as agent to terminate such agency relationship; or has engaged in any other act or conduct proscribed by the Committee from time to time (any such act or
conduct, individually or collectively, sometime hereinafter referred to as "Misconduct"). No person shall be entitled to exercise any Option granted to an Eligible Employee or held by an Option holder
if the Authorized Officer or the Committee, as the case may be, has determined such Eligible Employee or Option holder to have engaged in any Misconduct. 

        (e)    Conditions and Restrictions Upon Securities Subject to Options:    The Committee
may provide that the shares of Common Stock issued upon exercise of an Option shall be subject to such further conditions or agreements as the Committee in its discretion may specify prior to the
exercise of such Option, including without limitation, conditions on vesting or transferability and forfeiture or repurchase provisions. 

        Transferability
of Option:    Unless otherwise provided by the Committee, each Option shall be transferable only by will or the laws of descent and
distribution. 

        Cancellation:    The
Committee may, at any time prior to exercise and subject to consent of the Eligible Employee, cancel any Option previously
granted and may or may not substitute in its place an Option with a different exercise price, different terms or in different amounts. 

        (f)    Other Terms and Conditions:    Options may also contain such other provisions,
which shall not be inconsistent with any of the foregoing terms, as the Committee shall deem appropriate. No Option, however, nor anything contained in the Plan shall confer upon any Eligible Employee
any right to continue in the Corporation's employ or service nor limit in any way the Corporation's right to terminate his or her employment or service at any time. Option grants may be evidenced by a
written agreement and/or such other written arrangements as may be approved from time to time by the Committee. 

	7.
	PERFORMANCE
STOCK 

        Performance
Stock consists of an award of Common Stock, the grant, issuance, retention and/or vesting of which shall be subject to such performance conditions and to such further terms
and conditions, as the Committee deems appropriate. 

        (a)    Performance Stock Award.    Each Performance Stock award shall contain provisions
regarding (a) the number of shares of Common Stock subject to such award or a formula for determining such, (b) the performance criteria and level of achievement versus these criteria
which shall determine the number of shares granted, issued, retainable and/or vested, (c) the period as to which performance shall be measured for determining achievement of performance,
(d) forfeiture provisions, and (e) such further terms and conditions, in each case not inconsistent with the Plan as may be determined from time to time by the Committee. 

        (b)    Performance Criteria.    The grant, issuance, retention and/or vesting of each
Performance Share shall be subject to such performance criteria and level of achievement versus these criteria as the Committee shall determine, which criteria may be based on financial performance
and/or personal performance evaluations. 

        (c)    Timing and Form of Payment.    The Committee shall determine the timing of payment
of any Performance Stock. The Committee may provide for or, subject to such terms and conditions as the Committee may specify, may permit a Participant to elect for the payment of any Performance
Stock to be deferred to a specified date or event. 

        (d)    Discretionary Adjustments.    Notwithstanding satisfaction of any performance
goals, the number of shares granted, issued, retainable and/or vested under a Performance Stock award on 

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account of either financial performance or personal performance evaluations may be reduced by the Committee on the basis of such further considerations as the Committee in its sole discretion shall
determine. 

	8.
	ADJUSTMENT
OF AND CHANGES IN SECURITIES 

        (a)  If
the outstanding securities of the class(es) then subject to this Plan are increased, decreased or exchanged for or converted into cash, property or a different number
or kind of shares or other securities, or if cash, property or shares or other securities are distributed in respect of such outstanding securities, in either case as a result of a reorganization,
reclassification, dividend (other than a regular, quarterly cash dividend) or other distribution, stock split, reverse stock split, spin-off or the like, or if substantially all of the
property and assets of the Corporation are sold, then, unless the terms of such transaction shall provide otherwise, the maximum number and type of shares or other securities that may be subject to
Options and issued in accord with this Plan shall be appropriately adjusted. The Committee shall determine in its sole discretion the appropriate adjustment to be effected pursuant to the immediately
preceding sentence. In addition, in connection with any such change in the class(es) of securities then subject to this Plan, the Committee may make appropriate and proportionate adjustments in the
number and type of shares or other securities or cash or other property that may be acquired pursuant to Options theretofore granted under this Plan and the exercise price of such Options. In
addition, in the event of such change described in this paragraph, the Committee may accelerate the time or times at which any Option may be exercised and may provide for cancellation of any such
accelerated Option which is not exercised within a time prescribed by the Committee in its sole discretion. 

        (b)  No
right to purchase fractional shares or fractions of other securities shall result from any adjustment in Options pursuant to this Section. In case of any such
adjustment, the shares or other securities subject to the Option shall be rounded down to the nearest whole share of Common Stock or equivalent other security, as the case may be. 

	9.
	REGISTRATION,
LISTING OR QUALIFICATION OF SECURITIES 

        In
the event the Committee determines in its discretion that, as a condition to the issuance of shares under any award, the registration, listing or qualification of the shares of Common
Stock issuable under the Plan or under an Award is necessary or desirable under the rules of any securities exchange or under any law or governmental regulation, then the Committee may suspend the
exercisability of any or all Options in whole or in part until such registration, listing, qualification, consent or approval has been unconditionally obtained. No Option holder shall have any rights
as a stockholder with respect to any shares of Common Stock subject to an Option hereunder until said shares have been issued. 

	10.
	TAX
WITHHOLDING 

        To
the extent required by applicable federal, state, local or foreign law, an Eligible Employee or recipient of an Award shall make arrangements satisfactory to the Committee for the
satisfaction of any withholding tax obligations that arise by reason of the grant, vesting or exercise of an Award. The
Corporation shall not be required to issue shares of Common Stock or to recognize the disposition of such shares until such obligations are satisfied. 

	11.
	AWARDS
BY SUBSIDIARIES 

        In
the case of a grant of an Award to any Eligible Employee employed by a Subsidiary, such grant may, if the Committee so directs, be implemented by SLM Corporation issuing any subject
shares to the Subsidiary, for such lawful consideration as the Committee may determine, upon the condition or understanding that the Subsidiary will transfer the shares to the Eligible Employee in
accordance with the terms of the award specified by the Committee pursuant to the provisions of the Plan. Notwithstanding any other provision hereof, such award may be issued by and in the name of the
Subsidiary and shall be deemed granted on such date as the Committee shall determine. 

	12.
	EFFECTIVE
DATE, AMENDMENT AND TERMINATION OF PLAN 

        This
Plan became effective upon September 18, 1997. The Plan was amended on November 19, 1998, January 13, 2000, June 13, 2000, October 25, 2001, and
September 6, 2002. Unless earlier suspended or terminated by the Board of Directors, or extended as provided below, no Awards may be granted after September 18, 2007. The Board of
Directors or the Committee may from time to time extend the effective term of the Plan and otherwise amend the Plan as determined appropriate, without action by SLM Corporation's stockholders except
to the extent required by applicable law. References in the Plan and in writings evidencing and setting the terms of Option grants which refer to the Code or other applicable law shall also be deemed
to refer to any applicable successor provisions thereof unless otherwise determined by the Committee. The Plan may be earlier terminated at such earlier time as the Board of Directors may determine. 

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Exhibit 10.11

SLM Corporation EMPLOYEE STOCK OPTION PLANQuickLinks
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Exhibit 10.12    
  

 
 

SALLIE MAE
  EMPLOYEES' STOCK PURCHASE PLAN
  Amended and Restated as of November 6, 2002    
  

	1.
	PURPOSE 

        The
purpose of this Sallie Mae Employees' Stock Purchase Plan (the "Plan") is to motivate employees of SLM Corporation (formerly USA Education, Inc., renamed on May 17,
2002) (the "Corporation") and designated subsidiaries listed on Appendix A (collectively the "Employers") to achieve corporate goals and to encourage equity ownership in the Corporation by
employees of the Corporation and the Employers in order to increase their proprietary interest in the Corporation's success. 

	2.
	ADMINISTRATION

	(a)
	The
Plan shall be administered by the Sallie Mae Employees' Stock Purchase Plan Committee (the "Committee"), which shall be appointed by the Corporation's Board of Directors. In
addition to its duties with respect to the Plan stated elsewhere in the Plan, the Committee shall have full authority, consistent with the Plan, to interpret the Plan, to promulgate such rules and
regulations with respect to the Plan as it deems desirable, to delegate its responsibilities hereunder to appropriate persons and to make all other determinations necessary or desirable for the
administration of the Plan. All decisions, determinations and interpretations of the Committee shall be binding upon all persons.

	(b)
	The
rights to purchase stock ("Options") that are granted under this Plan shall constitute non-qualified stock options that are not intended to qualify under
Section 423 of the Internal Revenue Code of 1986. 

	3.
	SHARES
SUBJECT TO THE PLAN 

        The
stock that may be purchased under the Plan is common stock, $.20 par value, of the Corporation. The aggregate number of shares that may be purchased is 2,875,000 (which, pursuant to
Paragraph 4, was increased from 1,250,000 shares on account of a January 2, 1998 stock split and decreased by 1,500,000 on November 6, 2002) subject to any further adjustment
pursuant to Paragraph 4. Such shares may be previously-issued stock reacquired by the Corporation, authorized, but unissued stock, or stock that is purchased on the open market by the
Corporation. 

        If
at any time the number of shares to be purchased in an Offering Period, as defined in Paragraph 5(b), causes the total number of shares offered under the Plan to exceed the
above stated limit, then the number of shares that may be purchased by each Participant, as defined in Paragraph 5(d), in that Offering Period shall be reduced pro rata. 

	4.
	ADJUSTMENTS
FOR CHANGES IN CAPITALIZATION 

        If
there is a change in the number or kind of outstanding shares of the Corporation's stock by reason of a legislative action, stock dividend, stock split, recapitalization, merger,
consolidation, combination or other similar event, appropriate adjustments shall be made by the Committee to the number and kind of shares subject to the Plan, the kind of shares under Options then
outstanding, the Purchase Price, as defined in Paragraph 7, and other relevant provisions, to the extent that the Committee, in its sole discretion, determines that such change makes such
adjustments necessary or equitable. 

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	5.
	DEFINITIONS

	(a)
	Eligible
Compensation. The term "Eligible Compensation" shall mean the regular salary and hourly wages (calculated at the regular hourly rate, paid to an employee whose regularly
scheduled work week includes overtime hours, provided that the regular hours plus the overtime hours worked in any pay period do not exceed 80 hours), including payments for sick leave,
vacation, holidays, jury duty, bereavement and other paid leaves of absence, and, beginning with the November 3, 2000 pay date, commissions paid by an Employer to a Participant during the
Offering Period. "Eligible Compensation" shall not include short term disability payments made pursuant to the Sallie Mae Employees'
Comprehensive Welfare Benefit Plan and severance payments made pursuant to the Sallie Mae Employee Severance Plan.

	(b)
	Quarterly
Entry Date. The term "Quarterly Entry Date" shall mean February 1, May 1, August 1 and November 1.

	(c)
	Offering
Period. The term "Offering Period" shall mean the 24-month period beginning with each Quarterly Entry Date.

	(d)
	Purchase
Date. The term "Purchase Date" shall mean the last day of an Offering Period, except if the New York Stock Exchange is closed on the last day of an Offering Period, the
Purchase Date shall mean the immediately preceding trading day on the New York Stock Exchange.

	(e)
	Participant.
The term "Participant" shall mean an eligible employee who elects to participate in the Plan pursuant to Paragraph 9. 

	6.
	ELIGIBILITY

        As
of September 1, 1997, all regular full-time and regular part-time employees of the Corporation or the Employers shall be eligible to participate in the
Plan beginning with the first Quarterly Entry Date following their employment with the Corporation or an Employer; provided, however, the employee must commence employment prior to the enrollment
deadline and must complete the enrollment procedures prior to the enrollment deadline for such Quarterly Entry Date. Notwithstanding the prior sentence, the following individuals shall not be eligible
to participate in the Plan: 

	(a)
	any
individual whose services are performed for the Employer pursuant to a contract between the Employer and another entity, and whom the Employer treats as a leased employee;

	(b)
	any
individual that the Employer treats as an independent contractor;

	(c)
	temporary
employees;

	(d)
	as
of September 18, 1997, members of the Boards of Directors of the Corporation, the Employers, and the Student Loan Marketing Association, unless otherwise eligible as regular
full-time or part-time employees; and

	(e)
	Effective
November 1, 2001, employees assigned to perform services under the Management Services Agreement between Sallie Mae Servicing Corporation and the National Student
Loan Clearinghouse. 

	7.
	PURCHASE
PRICE 

        The
Purchase Price per share shall be equal to the fair market value of a share of common stock on the first business day of the Offering Period on which the New York Stock Exchange is
open, less 15 percent of such fair market value. Unless otherwise determined by the Board of Directors of the Corporation or the Committee, the fair market value of a share of common stock on a
particular date shall be deemed to be the closing price of a share of common stock as recorded by the New York 

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Stock Exchange Composite Transaction Tape on such date or, if no closing price has been recorded on such date, on the day immediately following the day on which such a closing price was recorded. 

	8.
	OPTION
TO PURCHASE STOCK 

        On
each Quarterly Entry Date, the Corporation will offer eligible employees, who are not then participating in the Plan, the opportunity to elect to participate in the Plan. Each
eligible employee who elects to participate will receive an Option to purchase on the Purchase Date the number of full and/or fractional shares of common stock that a Participant's Purchase Savings
Account, as defined in Paragraph 10, will purchase at the Purchase Price. 

	9.
	ENROLLING
IN THE PLAN 

        An
eligible employee may elect to participate in the Plan by completing the enrollment procedures established by the Committee before the enrollment deadline announced for each Quarterly
Entry Date. 

        A
Participant shall elect a percentage to be deducted regularly from his or her Eligible Compensation and deposited in his or her Purchase Savings Account, as defined by
Paragraph 10, provided that the Participant must elect an initial payroll deduction of no less than one percent (1%) of his or her Eligible Compensation. 

        A
Participant may elect to change his or her payroll deduction percentage on a biweekly basis, as limited by Paragraph 11. 

        Unless
a Participant changes his or her payroll deduction percentage or ceases participation in the Plan in accordance with Paragraph 14, a Participant's payroll deductions, as
limited by Paragraph 11, and his or her initial enrollment elections will continue until the end of the Offering Period. At the end of the Offering Period and if a Participant's contribution
percentage for that Offering Period is 1% or more, a Participant shall automatically be re-enrolled for the next Offering Period and payroll deductions will continue at the same percentage
unless the Participant changes the amount of his or her payroll deduction or ceases participation in the Plan in accordance with Paragraph 14. 

	10.
	PURCHASE
SAVINGS ACCOUNT 

        Pursuant
to the enrollment procedures established by the Committee, the Participant will direct his or her Employer to deposit, or cause to be deposited, payroll deductions in a money
market account (hereinafter called "Purchase Savings Account") with a third party designated by the Corporation (the "Third-Party Designate"). The Participant may not make other deposits to his or her
Purchase Savings Account. Purchase Savings Accounts may be adjusted for earnings, losses, and administrative fees and expenses under terms stated by the Third-Party Designate. 

        A
Participant may make withdrawals from his or her Purchase Savings Account under terms stated by the Third-Party Designate or in accordance with Paragraph 14 and the procedures
established by the Committee. Withdrawals may be made in an amount no less than $200. The Participant shall direct all requests for withdrawals to the Third-Party Designate in accordance with the
procedures established by the Committee or the Third-Party Designate and disbursements shall be made by the Third-Party Designate as soon as possible after the end of the month in which the withdrawal
requests are received. 

	11.
	MAXIMUM
CONTRIBUTIONS 

        A
Purchase Savings Account shall include payroll deductions adjusted for earnings, losses, and expenses on the account. The maximum amount that a Participant shall contribute to his or
her Purchase Savings Account is $10,000 per 24-month Offering Period; provided, however, that effective November 1, 2001, no more than 25 percent of a Participant's Eligible
Compensation may be contributed to the Plan. Contributions other than by payroll deductions, are not permitted. 

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	12.
	STOCK
PURCHASES 

        In
accordance with the applicable procedures established by the Committee, each Participant shall purchase all of the shares that he or she is entitled to purchase as a result of
participation in the Plan and subsequently the Corporation shall withhold a sufficient number of shares to cover his or her current federal, state, and local tax liability. On the Purchase Date, the
Third-Party Designate shall cause the funds then on deposit in the Participant's Purchase Savings Account, as adjusted for earnings, losses, or expenses, to be applied to the total Purchase Price of
the shares. 

        Taxes
in the required amount will be withheld from the proceeds of any and all shares sold and will be paid to the appropriate government agency. 

        If
the Purchase Price exceeds the fair market value per share on the Purchase Date, the Participant shall be deemed to have elected not to exercise the options set forth in this
Paragraph and the entire balance of the Participant's Purchase Savings Account then on deposit, as adjusted for earnings, losses, or expenses, will be refunded to the Participant. 

        The
common stock purchased on the Purchase Date will be issued and credited to a brokerage account established by the Corporation on behalf of the Participant and maintained by the
Third-Party Designate A Participant holding any shares beyond the expiration of the Offering Period may direct the Third-Party Designate to sell any or all shares held in his or her Stock Account at
any time after the expiration of the Offering Period, unless restricted from trading in Corporation stock at that time. 

	13.
	STOCK
ACCOUNT REPORTS AND DELIVERY OF SHARES 

        So
long as the Stock Accounts are established, the Third-Party Designate will maintain individual Stock Accounts for each Participant and will provide periodic statements of account no
less often than annually. All dividends credited to a Participant's Stock Account shall be automatically reinvested in accordance with the procedures established by the Committee. If a Participant
does not wish to have the dividends credited to his or her Stock Account automatically reinvested, the Participant must contact the Third-Party. Delivery of stock will be made under terms stated by
the Third-Party Designate. 

	14.
	CEASING
PARTICIPATION IN THE PLAN 

        A
Participant may cease participation in the Plan at any time prior to the Purchase Date by following the applicable procedures established by the Committee, in which event payroll
deductions will cease
and the entire balance of the Participant's Purchase Savings Account then on deposit, as adjusted for earnings, losses, or expenses, will promptly be refunded to the Participant. 

        An
eligible employee who has ceased participation in the Plan may reenter the Plan by following the enrollment procedures established by the Committee, subject to Paragraph 9.
However, such an employee may not reenter the Plan earlier than the second Quarterly Entry Date following the date on which participation ceased; any elections associated with the employee's
re-enrollment will be effective beginning with such second Quarterly Entry Date. 

	15.
	TERMINATION
OF EMPLOYMENT

	(a)
	Except
as provided in paragraph (b) below, in the event that a Participant's employment terminates, before the applicable Purchase Date, such employee's participation under the
Plan shall terminate immediately and within a reasonable time thereafter, the employee will be paid in cash the value of his or her Purchase Savings Account then on deposit, as adjusted for earnings,
losses, or expenses; provided, however, that a Participant who transfers employment between Employers shall not be deemed to have terminated employment for the purposes of this Paragraph. 

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	(b)
	Notwithstanding
the foregoing, if any termination of employment is for reasons of death, total and permanent disability or retirement, as defined herein, the employee (or in the case
of death, his or her estate) shall have the right within the Offering Period that ends which is closest to 1 year from the date of his or her termination, or the original Offering Period,
whichever is earlier, pursuant to Paragraph 12, to purchase all of the shares which he or she is entitled to purchase at the Purchase Price as a result of his or her participation in the
offering with the funds then on deposit in his or her Purchase Savings Account, as adjusted for earnings, losses, or expenses, or to receive in cash such funds. Solely at the discretion of the
Committee, a former employee may be permitted to purchase shares under other circumstances, under terms determined solely by the Committee.

	(c)
	For
the purposes of this Paragraph, a Participant is considered totally and permanently disabled within the meaning of the Corporation's long-term disability policy
applicable at the time to Optionee, as may be amended from time to time. The determination of the Committee as to an individual's Disability and the date thereof shall be conclusive on all of the
parties.

	(d)
	For
the purposes of this Paragraph, an employee will be considered to terminate on account of retirement if he or she is at least the normal retirement age under Corporation's
qualified pension plan at the time of termination of employment. 

	16.
	NO
TRANSFER OR ASSIGNMENT OF EMPLOYEE'S RIGHTS 

        Except
as specified in Paragraph 17, an employee's rights under the Plan are his or hers alone and may not be transferred or assigned to, or availed of, by any other person. 

	17.
	ESTATE
AS BENEFICIARY 

        The
designated beneficiary of a Participant's Purchase Savings Account shall be the Participant's estate. A Participant may not designate another person as his or her beneficiary or
joint tenant with rights of survivorship. 

	18.
	CLAIMS
PROCEDURES 

        A
Participant may appeal the denial of benefits under this Plan by submitting a written statement appealing the decision, normally within 60 days of the denial of the benefit by
the Committee. In the written statement, the Participant must state reasons why the claim should not have been denied. Also, the written statement should be accompanied by any documents, additional
information or comments that might be helpful to the Committee. In this manner, the Committee intends to afford any Participant or beneficiary whose claim for benefits has been denied a reasonable
opportunity for a review of the decision. Written appeals must be sent to: 

The
Employee Stock Purchase Plan Committee

c/o The General Counsel's Office

SLM Corporation

11600 Sallie Mae Drive

Reston, VA 20193 

        The
Committee will review a Participant's appeal and will promptly notify such Participant in writing of the decision. Normally, this decision will be made within 60 days of
receipt of an appeal, but this period may be extended to no more than 120 days if special circumstances require additional time. In such a case, the Participant will be notified before the end
of the initial 60-day period of the reasons for the extension. 

5

 
	19.
	TERMINATION
AND AMENDMENTS TO PLAN

	(a)
	The
Corporation may at any time terminate the Plan or change the aggregate number of common shares that may be purchased under the Plan.

	(b)
	The
Committee may at any time or times amend the Plan (including amendments to Appendix A to add or delete designated subsidiaries).

	(c)
	Nothing
contained in this Plan shall be construed to prevent the Corporation from taking any corporate action which is deemed by the Corporation to be appropriate or in its best
interest, whether or not such action would have an adverse effect on the Plan or any rights granted under the Plan. No employee, beneficiary or other person shall have any claim against the
Corporation as a result of any such action. 

	20.
	INDEMNITY

        The
Corporation shall, consistent with applicable law, indemnify members of the Committee from any liability, loss or other financial consequence with respect to any act or omission
relating to the Plan to the same extent and subject to the same conditions as specified in the indemnity provisions contained in the By-Laws and Regulations of the Corporation. 

	21.
	LIMITATIONS
ON SALE OF STOCK PURCHASED UNDER THE PLAN 

        The
Plan is intended to provide common stock for investment and not for resale. The Corporation does not, however, intend to restrict the sale of the stock other than in accordance with
the Corporation's general policies regarding the sale of the Corporation's stock. The employee assumes the risk of any market fluctuations in the price of such stock. 

	22.
	PAYMENT
OF EXPENSES RELATED TO PLAN 

        The
cost, if any, of withdrawals from a Purchase Savings Account, delivery of shares to a Participant or commissions upon the sale of stock shall be paid by the Participant using such
service. Other expenses associated with the Plan, if any, in the discretion of the Committee, will be allocated as deemed appropriate by the Committee. 

	23.
	OPTIONEES
NOT STOCKHOLDERS 

        Neither
the granting of an Option to an employee, nor the deductions from his or her pay shall cause such employee to be a stockholder of the shares covered by an Option until such
shares have been purchased by and issued to him or her. 

	24.
	FEDERAL
AND STATE INCOME TAX REQUIREMENTS 

        The
Employers, in accordance with Sections 3102(a) and 3402(a) of the Internal Revenue Code of 1986 and applicable state law, are required to withhold from the wages of participating
employees, in any payroll period in which compensation is deemed received by the employee, employment and income taxes with respect to the amount that is considered compensation includable in the
employee's gross income. An employee will be required to pay over to the Corporation or his or her Employer funds sufficient to meet any tax obligation if any employee's current compensation or
amounts withheld from the Purchase Savings Account or option exercise are not sufficient to meet the employment and income tax withholding obligation. 

	25.
	NO
EMPLOYMENT RIGHTS 

        Nothing
in the Plan shall confer upon any employee any right to continued employment, or interfere with the right of the Corporation or the Employers to terminate his or her employment
at any time, for any reason. 

	26.
	EFFECTIVE
DATE 

        Except
as otherwise provided herein, the effective date of this Plan is November 1, 2001. This Plan was previously amended and restated on November 2, 1989,
August 12, 1991, November 20, 1992, January 2, 1998, October 5, 1998, September 22, 2000, November 1, 2001 and November 6, 2002. 

6

 

        IN
WITNESS WHEREOF, SLM Corporation has caused this instrument to be duly executed in its name and on its behalf. 

	 	 	SLM Corporation
	

 	
 	

By	
 	

	

 	
 	

Date:	
 	

7

 
 
 

APPENDIX A
  DESIGNATED SUBSIDIARIES    
  

Sallie
Mae, Inc. 

Sallie
Mae Servicing Corporation 

Effective
January 1, 2001, Student Loan Funding Resources 

SLM
Financial Corporation 

Effective
January 1, 2001, Student Assistance Corporation 

Effective
January 1, 2001, Noel-Levitz 

Effective
January 1, 2001, Education Debt Services Inc. 

NM
Education Loan Corporation 

Effective
January 1, 2001 Education One Group 

HEMAR
Insurance Corporation of America 

Education
Debt Services, Inc. 

Effective
January 31, 2002, General Revenue Corporation 

Effective
January 2, 2002, Pioneer Credit Recovery 

Effective
January 1, 2001, True Careers, Inc. 

8

QuickLinks

Exhibit 10.12

SALLIE MAE EMPLOYEES' STOCK PURCHASE PLAN Amended and Restated as of November 6, 2002

APPENDIX A DESIGNATED SUBSIDIARIES

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