Document:

exhibit1047privateloansa

PRIVATE LOAN SALE AGREEMENT   This Private Loan Sale Agreement (the "Agreement") is made and entered into effective   as of this 9th day of October ,2014, by and between Nelnet, Inc., a Nebraska corporation   and its subsidiaries and affiliates (collectively, the "Seller") and Union Bank & Trust Company, a   Nebraska state banking corporation (the "Purchaser").   WHEREAS, Seller is engaged in a program of acquiring and servicing unsecured loans to   borrowers for educational purposes ("Private Loans"), and such Private Loans are not and will not   be made, guaranteed or insured pursuant to the Higher Education Act of 1965, as amended;   WHEREAS, Seller and Purchaser have engaged or will engage Nelnet Servicing, LLC,   d/b/a Firstmark Services (the "Servicer") to assist Seller and Purchaser in servicing the Private   Loans;   WHEREAS, Purchaser wishes to purchase from Seller all right, title and interest in certain   Private Loans and Seller wishes to sell to Purchaser such Private Loans under the terms and   conditions as set forth herein.   NOW, THEREFORE, in consideration of the premises and the mutual covenants herein   contained, Purchaser and Seller do hereby agree as follows:   1. Sale of Private Loans.   (a) Purchaser shall purchase from Seller and Seller shall sell, transfer and   convey to Purchaser all right, title and interest in and to such Private Loans which are in   compliance with the representations and warranties given by Seller in this Agreement, with   an aggregate outstanding principal balance of approximately $16 ,(; 00,000.00 dollars.   Seller has made available to Purchaser information in order to enable Purchaser to make   credit decisions with respect to the Private Loans. Seller shall make such sale and transfer   of the Private Loans free and clear of all security interests, liens or encumbrances of any   nature whatsoever. The purchase price for such Private Loans shall be the amount equal   to 100% of the outstanding principal balance and of accrued and unpaid interest on the   Private Loan being sold.   (b) The sale and purchase of the Private Loans under this Agreement shall be   without recourse of any nature whatsoever against Seller, except as otherwise expressly   provided herein. Seller and Purchaser acknowledge and agree that this Agreement results   in Purchaser's assumption of credit risk in the Private Loans, both before and after any   1    

 

default with respect to the Private Loans. Purchaser is relying upon the maker of each   Private Loan for repayment thereon, and not upon the Seller therefor. The parties hereto   intend that this Agreement shall constitute a true conveyance and absolute sale of all right,   title and interest in and to the Private Loans by Seller to Purchaser, and this Agreement   shall constitute such true conveyance and absolute sale.   2. Transfer Documentation. The Private Loans are evidenced by promissory notes.   Seller makes no representations or warranties with respect to the Private Loans or any   documentation evidencing such Private Loans except as expressly stated in Section 5(a) hereof.   The originals of such promissory notes shall be kept in the physical custody and possession of the   Servicer for purposes of servicing. On the date of the sale of the portfolio of Private Loans, or   thereafter as mutually agreed to by the parties, Seller shall execute and deliver (or shall cause to   be executed and delivered) to Purchaser a bill ofsaJe in the form marked as Exhibit "A," attached   hereto and incorporated herein by this reference, evidencing sale of the Private Loans in that   portfolio. Seller shall attach or cause to be attached to the executed original of Exhibit "A" a   schedule of the Private Loans identifying such loans comprising the portfolio. On such same date,   Seller shall also execute and deliver (or cause to be delivered) to Purchaser a blanket endorsement   substantially in the form marked on Exhibit "8" attached hereto and incorporated herein by this   reference.   3. Decisions Concerning the Private Loans. After purchase of the Private loans   pursuant to this Agreement, all actions and decisions concerning the Private Loans, including   without limitation the day-to-day administration and servicing of the Private Loans, shall be made   by Purchaser as owner of each Private Loan. Servicing of the Private Loans shall be performed by   the Servicer on behalf of Purchaser, in accordance with the Private Loan Servicing Agreement   between Purchaser and Servicer (the "Servicing Agreement"). Purchaser shall pay to the Servicer   those fees and costs of servicing the Private Loans as set forth in the Servicing Agreement   following the date of closing the sale of the Private Loan to Purchaser. Purchaser acknowledges   that it has made its own credit analysis with respect to the Private Loans and does not rely on the   Seller for any such credit analysis.   4. Payments and Accounting to Purchaser. Seller shall account and deliver to   Purchaser, on a periodic basis as agreed to by Purchaser, all payments from borrowers on the   Private Loans received following the sale of those Private Loans to Purchaser. Such accounting   and delivery of payments shall occur no less frequently than once per calendar quarter during the   term of this Agreement.   5. Representations and Warranties.   (a) Seller makes no representations or warranties, whether expressed or   implied, to Purchaser, as to the collectability of the Private Loans or the continued   solvency of the borrowers on Private Loans. Seller does represent and warrant to   Purchaser as follows:   (1) This Agreement has been duly authorized, executed and delivered   by Seller and constitutes a legal, valid and binding obligation.   2    

 

(2) The Agreement was made in compliance with all applicable local,   State and federal laws, rules and regulations.   (3) Seller has and its officers acting on its behalf have, fl111 legal   authority to engage in the transactions contemplated by the   Agreement, the execution and delivery of the Agreement, the   consummation of the transactions herein contemplated and   compliance with the terms, conditions and provisions of the   Agreement do not and will not conflict with or result in a breach of   any of the terms, conditions or provisions of the charter, articles or   bylaws of Seller or any agreement or instrument to which Seller is a   party to or bound by any agreement or instrument or a default   thereunder, Seller is not a party to or bound by any agreement or   instrument or subject to any charter or other corporation restriction   or judgment, order, writ, injunction, decree, law, rule or regulation   which may materially and adversely affect the ability of Seller   enforceable against it in accordance with its terms, and no consent,   approval or authorization of any government or governmental body   is required in connection with the consummation of the transactions   herein contemplated.   (4) Seller is duly organized, validly existing and in good standing under   the laws of the State of Nebraska and has the power and authority to   own its assets and carryon its business as now being conducted.   (5) At the time of origination, each Private Loan was made either by   First National Bank Northeast, M&I Bank, FSB, Citibank or another   originating lender approved by Seller.   (6) Each Private Loan has been duly executed and delivered and   constitutes the legal, valid and binding obligations of the maker   thereof, enforceable in accordance with its terms, Each Private Loan   is not delinquent more than thirty (30) days as of the date of sale   hereunder.   (7) None of the Private Loans are subject to any security interest, lien   or other encumbrance of any nature whatsoever.   (b) Purchaser represents and warrants to Seller as follows:   (1) This Agreement has been duly authorized, executed and delivered   by Purchaser and constitutes a legal, valid and binding obligation.   (2) The Agreement was made in compliance with all applicable local,   State and federal laws, rules and regulations.   3    

 

(3) Purchaser has and its officers acting on its behalf have, full legal   authority to engage in the transactions contemplated by the   Agreement, the execution and delivery of the Agreement, the   consummation of the transactions herein contemplated and   compliance with the terms, conditions and provisions of the   Agreement do not and will not conflict with or result in a breach of   any of the terms, conditions or provisions of the charter, articles or   bylaws of Purchaser or any agreement or instrument to which   Purchaser is not a party to or bound by any agreement or instrument   or a default thereunder. Purchaser is not a party to or bound by any   agreement or instrument or subject to any charter or other   corporation restriction or judgment, order, writ, injunction, decree,   law, rule or regulation which may materially and adversely affect   the ability of Purchaser enforceable against it in accordance with its   terms, and no consent, approval or authorization of any government   or governmental body is required in connection with the   consummation of the transactions herein contemplated.   (4) Purchaser is duly organized, validly existing and in good standing   under the laws of the state of its organization, and has the power and   authority to own its assets and carryon its business as now being   conducted.   (5) The authorized officer executing this Agreement on behalf of   Purchaser hereby certifies that Purchaser has approved purchase of   the Private Loans as identified in the bill of sale, and is relying upon   the respective makers of the Private Loans to repay the same.   (c) If any representation or warranty contained in Section 5(a)(5) hereof shall   prove to have been materially incorrect, then Seller shall repurchase such Private Loan upon   the request of Purchaser by paying to Purchaser the then outstanding principal balance of   such Private Loan and of accrued and unpaid interest thereon and any other amounts as may   be necessary to make the Purchaser whole.   6. Miscellaneous Provisions.   A. Neither this Agreement nor any term hereof may be changed, waived,   discharged, modified or terminated orally, unless by an instrument in writing signed by   both of the parties hereto.   B. The headings in this Agreement are for convenience of reference only and   shall not define or limit the provisions hereof.   C. All of the terms, covenants and conditions herein contained shall inure to   the benefit of, and be binding upon, the parties hereto and their respective successors and   assigns.   4    

 

D. Notices under this Agreement shall be in writing unless otherwise permitted   hereby, and if in writing, may be personally delivered or sent by United States mail,   sufficient postage prepaid, or by telecopy or facsimile, to the respective parties at the   following addresses:   Purchaser:   Union Bank f.md 'I'l'.·u~)t.Company   Attn: Brad Crcun, )~xecut.ive Chief ["j.nancial Offj.cer   4213 Pioneers Woods Drive   Lincoln, NE 68506   Telephone: (402) 323-1783   Facsimile--;- (402) 323··1.190   Seller:   Nelnet, Inc.   Attn: James D. Kruger, CFO   121 South 131h Street, Suite 201   Lincoln, NE 68508   Telephone: 402/458-2304   Facsimile: 402/458-2294   E. This Agreement shall not be construed to create a partnership or joint   venture between Seller and Purchaser.   F. If anyone or more of the covenants or agreements or portion thereof   provided in this Agreement on the part of Purchaser or Seller to be performed should be   determined by a court of competent jurisdiction to be contrary to law, then such covenant   or covenants, or such agreement or agreements, or such portions thereof, shall be deemed   severable from the remaining covenants and agreements provided in this Agreement and   the invalidity thereof shall in no way affect the validity of the other provisions of this   Agreement hereunder and under any applicable provisions of law.   G. This Agreement shall be construed and interpreted in accordance with the   laws of the State of Nebraska.   Executed as of the day and year first above written.   Union Ba.nk and Trust.   C""QI"",l\p~a""l~ly~ ' Purchaser Nelnet, Inc., Seller   By: By:   5    

 

Title: CEO / President: Title:   6    

 

EXHIBIT A   BILL OF SALE   FOR VALUE RECEIVED, the Seller, pursuant to the terms and conditions of the Private   Loan Sale Agreement (the "Agreement") to which this BiH of Sale is attached, does hereby grant,   sell, assign, transfer and convey tot~~r{ &u'/< ,.j... (-I4~sr_' , the Purchaser, and its successors and   assigns, all right, title and interest of the Seller in and to the following;   (1) The loans described in Annex I attached hereto (the "Loans");   (2) All related documentation evidencing the indebtedness represented by such Loans; and   (3) All proceeds of the foregoing including.   TO HAVE AND TO HOLD the same unto the Purchaser, its successors and assigns,   forever. This Bill of Sale is made pursuant to and is subject to the terms and provisions of the   Agreement, and is without recourse, except as provided in the Agreement. AU capitalized terms   used herein shall have the same meaning given to them in the Agreement.   IN WITNESS WHEREOF, the Seller has caused this instrument to be executed by one of its   officers duly authorized as of the date set forth below.   ,20_LLj   NELNET, INC., SELLER   BY~~   Name: ..i!i:.Ii.(~_.J.Jx_~.L4jJ   ClOv>rnCtr1Title:   7    

 

ANNEX I   LOAN LISTING   (to be provided by Seller)   8    

 

BLANlCETENDORSEMENT   Pursuant to the Private Loan Sale Agreement dated {)e,{9!w 1_, 2014 (the" Agreement",   the undersigned Nelnet, Inc., (the "Seller"), by execution of this instrument, hereby endorses all   promissory notes purchased by thl(?r/ ,d{ulk <f' r,;i/~1" (J:,Y4jdthe "Purchaser").   This endorsement is in blank, unrestricted form. This endorsement is without recourse,   except as provided under the terms of the Agreement. All right, title, and interest of Seller in and   to the promissory notes and related documentation identified in the attached loan ledger are   transferred and assigned to the Purchaser.   This endorsement may be further manifested by attaching this instrument or a facsimile   hereof to each or any of the Promissory Notes and related documentation acquired by the Purchaser   from Seller, or by attaching this instrument to the loan ledger schedule, as the Purchaser may   require or deem necessary.   20/1./', -   NELNET, INC.   By: ~\0\ £J ,,_C'I..   Name: ;11'kt' J/o la/I   Title: ~,-:_I".:_p'1__:_tfl_:_/'_:I _   9exhibit1048privatestuden

Firstmark'   SERVICES   PRIVATE STUDENT LOAN   SERVICING AGREEMENT   This Private Student Loan Servicing Agreement (the "Agreement") is entered into and effective   as of the 9th day of October, 2014, by and between Nelnet Servicing, LLC, d/b/a Firstmark   Services, a Nebraska limited liability company, ("Firstmark") and Union Bank and Trust   Company, a Nebraska state banking corporation, ("Lender").   WHEREAS, Firstmark provides processing services related to the servicing of Education Loans   for lenders; and,   WHEREAS, Lender in the ordinary course of its business makes or acquires Education Loans;   and,   WHEREAS, Firstmark agrees to process and service Education Loans for Lender pursuant to the   Servicing Guidelines, and Lender therefore desires to retain Firstmark for such services.   NOW THEREFORE, in consideration of the premises and the mutual covenants hereinafter set   forth, the parties agree as follows:   Article I - Definitions   1_1. "Affiliate" means any individual, corporation, partnership, association 01' business that   directly or indirectly through one or more intermediaries) controls, or is controlled by, or is   under common control with a party or its successors. The term "control" including the terms   "controlling," "controlled by," and "under common control with" means the possession, direct   01' indirect, of the power to direct or cause the direction of the management and policies of a   corporation, partnership, association or business, whether through the ownership of voting   shares, by contract or otherwise, Affiliates shall include such entities whether now existing or   later established by investment, merger or otherwise, including the successors and assigns of   such entities.   1w2, "Agreement" means this Agreement.   1~3, "Applicable Law" means federal, state or local statute, rule, regulation or similar legal   requirement applicable to processing the origination and servicing of Education Loans,   1-4. "Almlicable Requirements" means each of the following, as applicable: (i) all contractual   obligations under this Agreement and under the Loan Documents; (ii) Applicable Law, and   (iii) the Servicing Guidelines.   1-5. "Borrower" means a maker ofa promissory note with respect to an Education Loan,   CONPIDENTIAL   FlRSTMARK SERV1CES   Pnge J    

 

1-6. "Business Day" means any day other than a Saturday, Sunday, 01' a day on which the   banking institutions in the city in which a payment is received or a disbursement hereunder   must be initiated are authorized or required by law 01' executive order to close.   1-7. "Claims" means claims, liabilities, losses, damages, costs, expenses and reasonable   attorney's fees asserted against or incurred by a party in connection with a dispute by or the   assertions of a third party which arise out of the relationship created by the Agreement.   1-8. "Confidential Information" has the meaning given such term in Section 1lI-II.a. hereof.   1-9. "Education Loan" means a consumer loan made or to be made to a Borrower for the   funding of expenses in connection with such Borrower's education, and which is not insured   or guaranteed by, or made pursuant to a program sponsored by, a state or federal government   01' governmental agency.   1-10. "Effective Date" means the date set forth in the preamble to this Agreement.   I -11. "Fees" means the amounts to be paid by Lender to Firstmark fOI'the Services, as further   defined in Section 2-7(a) and Schedule A.   1-12. "Force Majyure" means, without limitation, the following: acts of God, strikes, lockouts,   or other industrial disturbances; acts of public enemies; order 01' restraint of any kind of the   government of the United States of America or of any state or locality in which a party is doing   business or any of their departments, agencies or officials, or any civil or military authority;   insurrections; riots; landslides; earthquakes;. fires; storms; droughts; floods; explosions;   breakage or accident to machinery, equipment, transmission pipes or canals; or any other cause   or event not reasonably within the control of the party.   1-13. "Intellectual Prop-erty" means user manuals, training materials, computer programs,   routines, structures, layout, report formats, trademarks, servicemarks, copyrights, patent rights   and all oral or written information relating to a party's business which is not generally known   to the public and which gives such party an advantage over its competitors who do not know   or use such information.   1-14. "Lender" has the meaning given to such term in the preamble to this Agreement.   1~15. "Loan Documents" means loan applications, promissory notes, credit agreements,   disclosures and notices with respect to Education Loans. Lender acknowledges that it holds   the "Customer Relationship" (as defined in the Gramm-Leach-Bliley Act) with Borrowers and   thereby has the responsibility to provide privacy policies and notices to such Borrowers as   required therein. Firstmark will deliver or make available Lender's privacy notices in   connection with the Services, as directed by Lender) at the fee set forth in Schedule A.   1-16. "NPl" means "Nonpublic Personal Information" as such term is defined in the regulations   implementing Subtitle A of Title V of the Graham-Leach-Bliley Act, Pub. L. 106-102,   CONFIDENTtAL   FJRSTMARK SERVICES   Page 2    

 

codified at 15 U.S.C. 6801 et seq., received or obtained, directly or indirectly, by Firstmark   pursuant to or in connection with of this Agreement.   1-17. "Person" means an individual, a partnership, a joint venture, a corporation, a trust, an   unincorporated organization, a government or any department or agency thereof or any other   entity.   1-18. "School" means the educational institution attended or to be attended by a Borrower, using   the funds provided by an Education Loan.   1-19. "Servicing Guidelines" means the Client Program Manual or similar information attached   hereto as Schedule I-19.   1-20. "Services" means the Servicing Services.   1-21. "Term" has the meaning set forth in Section III-I below.   Article II - Services Provided   2-1. Forms and Documentation.   All Loan Documents to be utilized by Lender and Firstmark in connection with the Services,   shall be the responsibility of Lender and provided by Lender to Firstmark. Any material   modification of such forms and documentation shall likewise be prepared by 01' approved in   writing by Lender. Lender shall be solely responsible to ensure that at all times the Loan   Documents comply with Applicable Law. Firstmark shall have no liability for inaccuracies or   other defects in the Loan Documents or for the failure of any Loan Documents to comply with   Applicable Law.   2-2. Approval of EducatiQn Loan Applications.   Nothing in this Agreement shall make Firstmark a loan production office or a holder or   originator of any Education Loan, processed or serviced hereunder.   2-3. Origination Services. All Education Loans to be serviced by Firstmark pursuant to this   Agreement shall have been previously originated by origination agents by or 011 behalf of   Lender or Lender's assignor. Firstmark shall not be responsible for any origination services   under this Agreement.   2-4. Services.   Upon acceptance of any previously originated Education Loan i11tOFirstmark's computer   system, Firstmark shall service such loan in accordance with Applicable Requirements,   provided, Firstmark shall at no time have any liability for the actions of third parties or for the   origination or servicing of Education Loans prior to such Education Loans being delivered to   Firstmark for servicing. Services to be performed by Firstmark shall include the following:   CONFIDENTIAL   FIRSTMARK SER VICES   Page 3    

 

a. Making available to Borrowers all required Loan Documentation.   b. Acceptance of Borrower payments, including via Automated Clearinghouse processes.   Payments via U.S. Mail will be directed to a lockbox established by Firstmark. Daily   transfer of funds to Lender will include all sums applied to the Education Loans, less   any cash payment reversals (checks returned for insufficient funds and stop payment   orders).   c. Accounting for all transactions related to Education Loans, including ali payments on   such Education Loans, in accordance with the Servicing Guidelines. Interest   computation shall be completed in accordance with the Servicing Guidelines.   d. Processing of address changes and other demographic information changes provided,   Pirstmark may rely on, without independently verifying, all data entries, manipulations   and representations related to Education Loans which are provided to Firstrnark or the   Firstmark systems by Lender, Schools or Borrowers.   e. Responding to inquiries pertaining to Education Loans, school status or refunds,   provided, Lender shall cooperate as necessary to enable Firstmark to respond. Inquiries   may be referred to the School if necessary.   f. Reporting to credit reporting agencies pursuant to Applicable Requirements.   g. Retention of an image of all Loan Documentation, including maintaining a backup copy   of all Loan Documentation in a location distinct from the original.   h. Acting as custodian with respect to all Loan Documentation and systems records for   each Education Loan. Firstmark may make electronic images of Loan Documentation   in place of the original as permitted for collectability purposes under state and federal   law.   I. Performing default aversion services with respect to the Education Loans.   2-5. Servicing Errors.   If Firstmark commits an error in connection with the Services, which error directly results in   such Education Loan becoming unenforceable or uncollectible, Lender shall give Firstmark   written notice of the same. Thereafter, Firstmark shall have a reasonable time to cure such   Education Loan. If cure cannot be accomplished within twelve (12) months of the original   error, Firstmark will purchase or arrange for purchase of the Education Loan from Lender at   an amount equal to the outstanding principal balance and accrued but unpaid interest thereon.   If the Education Loan is thereafter cured within twelve (12) months after the date of purchase,   Lender shall repurchase such Education Loan from Firstmark or its designee, at a price equal   to the outstanding principal amount thereof plus accrued but unpaid interest thereon, such sum   to be payable as an additional servicing fee under this Agreement. The foregoing shall be   Lender's sole remedy for origination or servicing errors by Firsrmark.   CONFIDENTIAL   FIRSTMARK SERVICES   Page 4    

 

In connection with the purchase of any Education Loan by Firstmark or its designee hereunder,   Lender will deliver to Firstmark all records in Lender's possession and will execute and deliver   to Firstmark such other documents and instruments as Firstmark may reasonably request to   effect the transfer. Such records shall be transferred to Firstmark free and clear of any liens,   encumbrances, claims, or interest of any person or entity claiming by, through, or under   Lender, and without representations or warranties, expressed or implied, and without recourse   to Firstmark. If Lender is required to repurchase the Education Loan from Firstmark or its   designee hereunder, Firstmark will deliver to Lender all records in Firstmark's possession and   will execute and deliver to Lender such other documents and instruments as Lender may   reasonably request to effect the transfer. Such records shall be transferred to Lender free and   clear of any liens, encumbrances, claims, or interest of any person or entity claiming by,   through, or under Firstmark, and without representations or warranties, expressed or implied,   and without recourse to Lender.   2-6. Reports to Lender.   On or about the 10th day of each month, Firstmark shall make available to Lender reports of   activity with respect to the Services during the preceding month, as designated in the Servicing   Guidelines.   2-7. Compensation for Services.   In consideration of the Services, Lender shall pay Firstmark the Fees on billing statements   delivered by Firstmark as set forth below. Fees shall be paid within thirty (30) days of the date   of each billing statement. Fees may be netted by Firstmark at its option, against distributions   due from Firstrnark to Lender, for Borrower payments.   a. Amount of Fees. The Lender shall pay to Firstmark fees in a monthly amount equal to   the fees described in Schedule A, attached hereto.   ARTICLE III - GENERAL PROVISIONS   3-1. Term of Agreement.   Subject to the termination provisions set forth below, the Agreement shall be effective for a   period of time commencing on the date first set forth above, and terminating on the date each   Education Loan has been paid in full by the Borrower, during which the Services shall be   provided, subject to payment of the Servicing Fees and other terms of the Agreement.   3-2. Termination of Agreement.   The Agreement may be terminated as follows:   a. At the expiration of the Term.   b. Upon the refusal or failure of a party to perform any material obligation of the   Agreement, and the failure or refusal to correct or cure such performance 01' lack   thereof, within sixty (60) days after the party's receipt of written notice of the failure   or refusal,   CONFIDENTIAL   FIRSTMARK SERVICES   Page 5    

 

c. Upon the failure of the parties to reach agreement with respect to a change in the Fees   as contemplated by Section 2~7 a. above.   d. At Firstmark's option, if Lender fails to pay Firstmark the Fees within sixty (60) days   of any billing statement, as contemplated by Section 2-7 a. above.   e. If an insolvency, bankruptcy or similar proceeding shall have been commenced, or a   decree or order of an appropriate court, agency or supervisory authority for the   appointment of a conservator, receiver or liquidator shall have been entered against a   party, the other party may terminate this Agreement immediately.   3-3. Termination Process.   Upon termination of this Agreement for any reason above, ail Loan Documentation and   relevant servicing records will be made available to Lender in Firstmark's standard format.   Lender will reimburse Firstmark for all expenses associated with removing such information   from Firstmark's systems and making such information available to Lender.   3~4. Representations and Warranties.   Each of the parties represents and warrants to the other party:   a. it is duly organized, validly existing and in good standing under the laws of the state of   its organization;   b. it has all necessary power and all licenses, permits, authorizations and approvals   (governmental, corporate or otherwise) necessary to carryon its business and perform   its obligations under this Agreement; and,   c. the execution or performance of this Agreement will not violate it's documents of   formation or governance, or any material contract 01' other instrument to which it is a   party or by which it is bound and will not violate any outstanding judgment, order, writ,   injunction, law, rule or regulation to which it is subject.   3~5. Liability.   Firstmark shall have no liability with respect to:   a. the failure of any Borrower to repay an Education Loan;   b. disputes between Borrowers and Schools regarding tuition, registration, attendance or   quality of education or training;   c. Claims arising from actions or inactions of Firstmark as directed by Lender) either   pursuant to Applicable Requirements or otherwise, with respect to which Lender shall   indemnify and hold Firstmark harmless;   d. incorrect information regarding Education Loans or Borrowers which may be provided   to Firstmark by Lender, Schools or Borrowers, including but not limited to,   School/Borrower certification, eligibility, enrollment, and School or Borrower   demographic information   Neither party shall have any liability for Claims under any theory of tort, contract, strict   liability 01' other legal 01' equitable theory for any lost profits, exemplary, punitive, special,   incidental, indirect or consequential damages, each of which is hereby excluded by agreement   CONFIDENTIAL   I'IRSTMARK SERVICES   Page 6    

 

of the parties regardless of whether such party has been advised of the possibility of such   damages.   3-6. Limitation on Actions.   The parties agree that any action for the breach of any provision of this Agreement shall be   commenced within twelve months following the earlier of (i) the termination of this Agreement   or (ii) the date the Education Loan with respect to which the action relates has been removed   from the Firstmark servicing system.   3-7. Audit Rights.   Upon prior written notice to Firstmark, and in coordination with Firstmark's management,   Lender may perform or arrange to have audits performed of Firstmark's servicing activities   with respect to Education Loans owned by Lender. All such audits will be performed at   Lender's sole expense and during Firstmark's normal business hours, In connection with such   audits, Firstmark agrees to provide, annually, up to forty (40) hours of assistance by Pirstmark   employees. Any additional assistance requested by Lender will be provided at an hourly rate   of $110.00 per hour per employee. Such fee is subject to change at Firstmark's reasonable   discretion but upon at least sixty (60) days' advance written notice to Lender.   3-8. Annual Compliance Audit.   On an annual basis, Servicer will cause to be completed a SSAE 16 SOC 1 Report review of   its activities. Upon request, Lender may receive a copy of the report of such review by paying   a pro-rata share of the cost of same. Servicer's Internal Audit Department coordinates such   participation on an annual basis and divides the aforementioned costs equally between those   lenders participating.   3-9. Disaster Recovery Plan.   Servicer agrees to maintain a disaster recovery plan designed to enable Servicer, after a   disaster, to resume Services within a reasonable timeframe. A summary of Servicer's plan wi 11   be made available to Lender upon request.   3-10. Intellectual Property Protection.   All right, title and interest of whatever nature in each party's Intellectual Property is and   shall remain the sole and exclusive property of such party, and 110 license or other rights   thereto are granted by this Agreement.   3-11. Confidentiality and Nondisclosure.   a. Definition. The term "Confidential Information" means any information that either   party discloses, by any method and in any form or format, which is marked   "Confidential," "Restricted," "Proprietary" or with other similar marking, 01' which   CONFIDBNTIAL   FIRSTMARK SERVICES   Page 7    

 

should reasonably be considered to be Confidential Information. By way of example   and not limitation, Confidential Information includes: (i) any information concerning   a party's, its agents' or licensors' technology, such as systems, source code, databases,   hardware, software, programs, applications, protocols, routines, models, displays and   manuals, including, without limitation, the selection, coordination, and arrangement of   the contents thereof; and (0) any information concerning a party's, its agents' or   licensors' financial or business plans 01' operations, such as research activities and   plans, marketing or sales plans, pricing or pricing strategies, operational techniques,   internal controls, compliance policies, methods of operation, security procedures,   strategic plans, and unpublished financial information, including information   concerning revenues, profits and profit margins.   b. Restrictions on Use. The party providing Confidential Information in each case shall   be called the "Disclosing Party" and the party receiving the Confidential Information   shall be called the "Recelving Party". The Receiving Party shall not use, without the   prior written consent of the Disclosing Party, any portion of the Disclosing Party's   Confidential Information for any purpose other than in connection with the   performance ofthis Agreement. Each party agrees that: (1) it will hold the Confidential   Information of the other party in the strictest confidence; (U) it will exercise no less   care with respect to the other party's Confidential Information than the level of care   exercised with respect to its own Confidential Information; (iii) it will not, without the   other party's prior written consent, copy or disclose to any third party any portion   thereof; and (iv) it will promptly notify the other party of any unauthorized disclosure   01' use, and will cooperate with the other property to protect all rights in and ownership   of its Confidential Information.   c. Exceptions. The foregoing restrictions on use shall not prohibit 01' limit the Receiving   Party's use, disclosure, reproduction or dissemination of the Disclosing Party's   Confidential Information which: (a) is or becomes public domain information or   material through no fault or breach on the part of the Receiving Party; (b) as   demonstrated by the written records of the Receiving Party, was already lawfully   known (without restriction on disclosure) to the Receiving Party prior to the   information being disclosed to the Receiving Party by the Disclosing Party or any   representative of the Disclosing Party; (c) has been or is hereafter rightfully furnished   to the Receiving Party without restriction on disclosure by a third person lawfully in   possession thereof; (d) has been independently developed, by or for the Receiving   Party, without reference to the Confidential Information of the Disclosing Party; or (e)   is required to be disclosed by court or agency order, provided that, unless prohibited by   law or order, the Receiving Party notifies the Disclosing Party so that the Disclosing   Party may have a reasonable opportunity to obtain a protective order or other form of   protection against disclosure.   d. Borrower Information. Firstmark agrees that all information related to or contained in   documents subject to this Agreement which is NPl constitutes Confidential Information   of the Lender, and Firstmark shall keep all such NPl in strictest confidence. NPI shall   not be released or divulged in any way without prior written consent of Lender, except   (i) to Firstmark's officers and employees, 01' such other third parties as is necessary to   CONPIDENT1AL   I'IRSTMARK SERVICES   Page 8    

 

perform its obligations under this Agreement, (ii) as specifically required by Applicable   Law, or (iii) to such other parties as directed in writing by the Lender. Firstmark shall   only use NPI to perform its duties under this Agreement and for other purposes specifically   directed in writing by Lender from time to time, and shall not directly or indirectly use, 01'   suffer, permit or cause to be used, any such NPI in any other manner or for any other   purpose whatsoever including marketing or cross-selling, or suffer, permit or cause the   marketing or cross-selling of, any products or services of any kind using NPI without   Lender's prior written approval, Without in any way limiting the foregoing, Firstmark's   use, reuse, disclosure and redisclosure ofNPI shall comply with Applicable Law.   e. Firstmark will maintain an information security program designed to prevent the   unauthorized disclosure, misuse, alteration or destruction of NPL Without limiting the   immediately preceding sentence, Firstmark agrees that such program shall be designed to   satisfy the objectives set forth in the "Interagency Guidelines Establishing Standards for   Safeguarding Borrower Information", 66 Fed. Reg. 8616, February 1, 2001 (codified in   Appendix B to 12 C.F.R. part 30).   3-12. Independent Contractors.   Lender and Firstmark are independent contractors, and nothing in this Agreement shall be   construed to create a partnership, joint venture or agency relationship between Lender and   Firstrnark.   3·13. Notices.   AU notices or communications by a party to the other party shall be delivered to the   addresses set forth in the signature section of this Agreement below, or to such other   address as may be provided from time to time by a party. Any notice shall have been   deemed to have been given on the fifth (5th) day following the mailing of such notice when   mailed by registered or certified mail, and upon receipt in every other case.   3-14. Gove1'l1ingLaw.   This Agreement is executed and delivered within the State of Nebraska. The parties hereto   agree that it shall be construed, interpreted and applied in accordance with the laws of the   State of Nebraska, and that the courts and authorities within the State of Nebraska shall   have sole jurisdiction and venue over all controversies which may arise with respect to the   execution of, interpretation of and compliance with this Agreement. EACH PARTY   HERETO WAIVES, TO THE FULLEST EXTENT PERMITTED BY APPLICABLE   LAW, THE RIGHT TO TRIAL BY JURY IN ANY LEGAL PROCEEDING ARISING   OUT OF OR RELATING TO THIS AGREEMENT OR THE TRANSACTIONS   CONTEMPLATED HEREBY.   3-15. Changes in Writing.   This Agreement, including this provision hereof, shall not be modified or changed in any   manner except by a writing signed by all parties hereto.   CONFIDENTIAL   FIRSTMARK SERVICES   Page 9    

 

3-16. Severability.   If a COUlt of competent jurisdiction finds any of the provisions of this Agreement to be so   overly broad as to be unenforceable or invalid for any other reason, it is the parties' intent   that such invalid provisions be reduced in scope or eliminated by the court, but only to the   extent deemed necessary by the court to render the remaining provisions of this Agreement   reasonable and enforceable.   3-17, Persons Bound.   This Agreement shall be binding upon and inure to the benefit of the parties hereto, their   legal representatives, heirs, successors and permitted assigns.   3-18. Assignment.   This Agreement shall not be assigned by either party without the prior written consent of   the other party, which consent shall not be unreasonably withheld, provided, Firstmark may   assign this agreement or delegate any obligation hereunder, to any Affiliate of Firstmark   with reasonable notice to Lender.   3-19, Titles.   The titles used in this Agreement are intended for convenience and reference only. They   are not intended and shall not be construed to be a substantive part of this Agreement or in   any other way to affect the validity, construction or effect of any of the provisions of this   Agreement.   3-20. Waiver.   The waiver or failure of either party to exercise in any respect any right provided for herein   shall not be deemed a waiver of any further right hereunder.   3~21. Force Majeure.   If by reason of a Force Majeure Firstmark is unable in whole or in part to carry out any   obligation of this Agreement, Firstmark shall not be deemed in default during the   continuance of such inability,   3-22. Corporate Obligations.   This Agreement consists of obligations of the parties as corporate or similar entities. Any   liability arising hereunder shall be corporate liabilities. No director, officer or employee   CONFIDENTIAL   l'IRSTMARK SERVrCES   Page 10    

 

of either party shall be subject to any liability to any other party for any action taken, or for   refraining from taking any action in good faith, or for errors in judgment.   Lender agrees that during the Term or Renewal Terms of this Agreement and for one year   thereafter, it will not hire or solicit for hire, or knowingly allow its employees to hire or   solicit for hire, any employee of Firstmark without the written permission of First mark.   3-24. Entire Agreement.   This is the entire and exclusive statement of the Agreement between the parties, which   supersedes and merges all prior proposals, understandings and all other agreements, oral   and written, between the parties relating to the Services or any other provision of this   Agreement.   3-25. Counterparts.   This Agreement may be executed in any number of counterparts. Each counterpart so   executed shall be deemed an original, but all such counterparts shall together constitute   one and the same instrument.   CONFIDENTIAL   FIRSTMARK SERVICES   Page II    

 

IN WITNESS WHEREOF, the parties hereto have executed this Agreement as of the Effective   Date.   NELNET SERVICING, LLC, d/b/a   FIRSTMARK SERVICES   By: C)~ fv~   Name: Joseph Popevis   Title: Executive Director   Date:   Address: 121 S. 13th Street, Suite 201   Lincoln, NE 68508   Union Bank and Trust Company   By: 04 i.eJIY1uP1Gu:,&----   Name: Angie Muhleitien   Title: CEO I Pl:esident.   Address: 1243 l?iomlers Woods Dr.   Lincoln. NE 68506   CONFIDENTIAL   FIRSTMARK SER VICES   Page 12    

 

Schedule A   Fee Schedule   Activi.!l:_ Fee Unit Measure   ,",_'.""'- -   Monthly Servicing Fees   Base Servicing $4.15 Per Borrower Per Month   Miscellaneous Fees   Delinquency surcharge I $1.80 Per Participant Per Month   1098-E Tax Form 15t Class Postage + Per Form   $.10   Privacy Statements 1st Class Postage + Pel' One Page Statement,   $.10 $.04 per additional P_~.g~   Special Proiect Fee2 $150.00 Per Hour   Removal/Deconversion Fee $40.00, not to exceed Per Loan   $1 million in   aggregate --   Manual Loan Add Fee $10.00 Per Loan   Sale/Internal Transfer Fee $3.00 Per Loan   Claim/Charge-Off! Bankrup.!Si Filing Fee $15.00 Per Defaulted Loan   .._----   • Increases in Postage expense due to United States Postal Service postage increase will be   a pass through cost   1 Surcharge Is assessed for each participant upon whom delinquency activity is performed In the month consistent   with the standard collection schedule Included in the program guidelines   2 The "Special Project" fee would be charged for system and report changes or enhancements that would be   needed to meet lenders requfrements. Fee only to be charged If disclosed and approved by lender In advance.   Schedule A - Page 1

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00241-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00241-of-00352.parquet"}]]