Document:

Filed by Bowne Pure Compliance

Exhibit 10.70

August 4, 2008

Raymond J. Ciarvella

6783 W. Princeton Place

Denver, CO 80235

Dear Ray:

This letter will confirm our discussion and mutual agreement regarding your separation from
permanent full time employment with Nelnet or its subsidiaries (including 5280 Solutions, LLC and
collectively defined here as “Nelnet”) as of July 15, 2008 (the “Termination Date”). As we have
discussed, the terms of our agreement are as follows, and any prior agreements or arrangements
related to your employment are void.

	 	1.	 	Compensation and Benefits. You will receive the following compensation and
benefits, which exceed amounts Nelnet would otherwise be required to pay you under our
normal policies and procedures or any other law, rule or agreement:

	 	a.	 	In lieu of notice, in lieu of any other monies you may be entitled to,
and the provisions of this Agreement, the amount of four hundred fifty thousand
dollars ($450,000), less applicable taxes and other deductions (“Payment”) on or
before August 15, 2008 via direct deposit to your bank account. The Payment includes
any amount you may have been entitled to pursuant to the company’s incentive program
for 2008. The Payment does not include (i) your regular payroll through the
Termination Date; and (ii) all accrued but unused Earned Time Off (ETO) as of the
Termination Date, both of which were paid to you on or about the Termination Date.

	 	b.	 	You and your dependents will be eligible for health insurance coverage
(including dental and vision coverage if applicable) pursuant to the Comprehensive
Omnibus Budget Reconciliation Act (“COBRA”), based on the coverage you had in place
upon the Termination Date and at your own expense.

	 	c.	 	Effective July 15, 2008, your participation in the Nelnet 401(k) plan and
the Employee Stock Purchase Plan as well as your accrual of ETO, and your disability
insurance and life insurance benefits have ceased in accordance with the provisions
of those plans. Disability and life insurance benefits are convertible to a
personal plan at your option. All restricted shares of Nelnet Class A Common Stock
in your name which had not vested as of July 15, 2008 will be cancelled.

	 	d.	 	You will receive Nelnet’s standard outplacement and career assistance
services package via Lee Hecht Harrison, at Nelnet’s expense.

	 	e.	 	You have received, without charge, a laptop computer with operating
software and applications substantially similar to the one you were provided while
employed with Nelnet.

	 	f.	 	You will receive reimbursement for pre-approved business expenses
(written approval of Nelnet’s President or Chief Financial Officer is required)
which are incurred on behalf of Nelnet
through July 15, 2008, upon submission of the same and subject to Nelnet’s standard
policies for payment of such expenses.

 

 

 

	 	2.	 	Waiver of Claims. In consideration of the amounts to be paid to you, you waive and
release Nelnet, Inc. and its employees, agents, officers, directors, and shareholders,
partners and affiliated companies; of and from any claims, demands, actions, charges, and
causes of action, known and unknown, of any kind whatsoever, including, but not limited to,
all matters relating to or arising out of your employment with and separation from Nelnet and
your compensation. This applies to claims under Title VII of the Civil Rights Act of 1964, as
amended; the Employee Retirement Income Security Act of 1974, as amended; the Rehabilitation
Act of 1973, as amended; the Age Discrimination in Employment Act of 1967, as amended;
Section 1981 of the Civil Rights Act of 1866; Executive Orders 11246 and 11478; the National
Labor Relations Act, as amended; the Fair Labor Standards Act of 1938, as amended; the Family
and Medical Leave Act of 1993; the Equal Pay Act of 1963, as amended, the Older Workers
Benefit Protection Act; the Americans with Disabilities Act; the Civil Rights Act of 1991;
and any other law or ordinance, or any other basis of action, up to and including the date
you execute this agreement. You further waive any rights and release Nelnet from any
obligation to pay for any leave benefits of any kind upon ending of employment, whether
accrued or not, including ETO and amounts pursuant to any incentive program.

	 	3.	 	Other Items

	 	a.	 	Confidentiality and Trade Secrets. This letter is confidential and may not be
disclosed to any other person except as required by law or to your spouse, accountants
or attorneys for legitimate purposes. You possess many trade secrets of Nelnet, such as
customer lists, marketing strategies and financial information, all of which you must
keep confidential at all times unless disclosure is authorized in writing by Nelnet.

	 	b.	 	Agreement Not to Compete. For a period of twelve (12) months following the
Termination Date, you agree not to engage, either directly or indirectly, in owning,
managing, operating, joining, controlling, being employed by or participating in any
manner in the ownership, management, operation or control of, or to be connected in any
manner with any person, firm, corporation, company (other than Nelnet), partnership,
joint venture or the like which in any way, either directly or indirectly, is engaged in
any activity which is directly or indirectly competitive with Nelnet, without the prior
express written consent and permission of Nelnet, provided, however, the foregoing does
not prevent your ownership of shareholdings of 1% or less of publicly traded companies.
Notwithstanding the foregoing, the provisions of this paragraph shall only apply
to the products and services offered by or in development at Nelnet (including 5280
Solutions, LLC), and the activities in which Nelnet (including 5280 Solutions, LLC) was
engaged as of the Termination Date and with which you were involved during your
employment, all as set forth on Exhibit “A” hereto. This Agreement shall supersede and
terminate any existing employment agreement, oral or written, between you and Nelnet.
The period of your agreement not to compete shall be extended to include any period of
time in which you are or were engaged in activities constituting a breach of this
paragraph and any period of time required to litigate with respect to such activities,
provided such litigation results in a finding that you were engaged in activities
constituting a breach hereof. You and Nelnet agree that a breach hereof will cause
irreparable injury to Nelnet, and that monetary damage would not provide an adequate
remedy for such breach and that therefore Nelnet
may elect to have this paragraph specifically enforced by any court having equity
jurisdiction, without the requirement of posting bond or other security.

 

 

 

	 	c.	 	Nonsolicitation. You will not at any time for a period of twelve (12) months from
and after the Termination Date, directly or indirectly solicit any employee of Nelnet to
leave the employ of their employer.

	 	d.	 	Employment Inquiries. In keeping with our standard policies, Nelnet will answer
external employment-related inquiries by indicating only the position(s) held by you,
your dates of employment, your responsibilities, and a confirmation of your last salary.
Please direct all such inquiries to Nelnet’s People Services department.

	 	e.	 	Statements. You agree not to make written or oral statements or take any action
directly or indirectly, which you know or reasonably should know to be disparaging or
negative concerning Nelnet, and you agree not to suggest to anyone that any such
statements be made or to urge or influence any person to make any such statement. You
will refrain from expressing any disparaging or negative opinions concerning your
separation from Nelnet, any of Nelnet’s officers, directors, or employees, or any other
matters relative to Nelnet’s reputation as an employer.

	 	f.	 	Indemnification. As a former corporate officer of Nelnet, Nelnet will continue to
provide you with indemnification relating to events which occurred while you were a
corporate officer, to the fullest extent permitted under applicable law and Nelnet’s
by-laws (including but not limited to any director and officer liability insurance to
the extent provided under Nelnet’s policy).

	 	g.	 	REVIEW AND REVOCATION PERIODS. YOU HAVE TWENTY ONE (21) DAYS FROM JULY 15, 2008
TO REVIEW AND CONSIDER THIS AGREEMENT BEFORE SIGNING IT. YOU ARE ADVISED TO CONSULT WITH
AN ATTORNEY BEFORE SIGNING THIS AGREEMENT. ALSO, YOU MAY REVOKE THIS AGREEMENT WITHIN
SEVEN (7) DAYS OF SIGNING IT, BY DELIVERING A WRITTEN NOTICE OF REVOCATION TO: EVAN
ROTH, 3015 S. PARKER RD. SUITE 400, AURORA, CO 80014. THE AGREEMENT WILL NOT BECOME
EFFECTIVE OR ENFORCEABLE AND THE PAYMENTS AND BENEFITS WILL NOT BE MADE OR BECOME
EFFECTIVE UNTIL THE END OF THIS REVOCATION PERIOD. IF YOU REVOKE THIS AGREEMENT, IT WILL
NOT BE EFFECTIVE OR ENFORCED, AND YOU WILL NOT RECEIVE ANY PAYMENTS HEREUNDER.

	 	h.	 	The terms of this Agreement have been changed from that initially provided to you
on July 15, 2008. The changes were made as a result of negotiations between you and
Nelnet. It is agreed that the changes, whether material or immaterial, do not restart
the running of the 21 day period to review and consider the Agreement and that the
running of the 21 day period shall be deemed to have started on July 15, 2008.

 

 

 

	 	i.	 	In the event you sign this Agreement prior to the 21 day time period, you hereby
state and affirm that: (1) your decision to accept such shortening of time is knowing
and voluntary; (2) your decision to accept such shortening of time was not induced by
Nelnet through fraud or misrepresentation, and (3) your decision to accept such
shortening of time was not induced by Nelnet through a threat to withdraw or alter the
offer prior to the expiration of the 21 day time
period, or by providing different terms to employees who sign the release prior to the
expiration of such time period.

	 	j.	 	This agreement shall be interpreted, construed and enforced in accordance with
the laws of the State of Nebraska.

Ray, thank you for your service to Nelnet. We wish you all the best in the future. Please sign
below to acknowledge your agreement to the terms of this letter.

Sincerely,

Mike Dunlap,

Chief Executive Officer

Nelnet, Inc.

I have read and understand the terms of my mutual separation agreement from Nelnet as described
above. I am entering into this agreement voluntarily and have had an opportunity to consult with
an attorney before signing this agreement.

	 	 	 	 	 
	/s/ Raymond J. Ciarvella	 	 
	 	 	 
	Raymond J. Ciarvella	 	 
	 
	 	 	 	 

 

 

 

EXHIBIT “A”

ACTIVITIES PROTECTED BY NONCOMPETITION AGREEMENT

The following activities, products and services are subject to the agreement of noncompetition set
forth in paragraph 3.b. of the letter agreement to which this Exhibit “A” is attached.

	 	1.	 	Education loan origination, disbursement, processing and servicing services

	 
	 	2.	 	Computer software systems, programs and applications for origination, disbursement,
processing and servicing of education loans in the United States and Canada

	 
	 	3.	 	GoHazel

	 
	 	4.	 	GenerationVoice

	 
	 	5.	 	Dynamic Forms

	 
	 	6.	 	Enterprise content management solutions (Dynamic Payables, Dynamic Filer, UConnect and
related offerings)

	 
	 	7.	 	TRACS time tracking

	 
	 	8.	 	Certified Mail

	 
	 	9.	 	Contract Compass

	 
	 	10.	 	Transcript Broker

	 
	 	11.	 	Webmentum

	 
	 	12.	 	Student ManagerFiled by Bowne Pure Compliance

Exhibit 10.71

LOAN PURCHASE AGREEMENT

This Loan Purchase Agreement (the “Loan Purchase Agreement”) made and entered into as of this
25th day of November, 2008, by and between Nelnet Education Loan Funding, Inc., f/k/a NEBHELP,
INC., a Nebraska corporation (the “Seller”), acting, where applicable, by and through Wells Fargo
Bank, National Association, not individually but as Eligible Lender Trustee (the “Trustee”) for the
Seller under the Warehouse Agreement or Eligible Lender Trust Agreement (as defined herein), and
Union Bank and Trust Company, a Nebraska state bank and trust company, acting in its individual
capacity and as trustee (the “Purchaser”).

W I T N E S S E T H :

WHEREAS, the Purchaser desires to purchase from the Seller certain FFELP Loans (as defined
below), title to which is currently held by the Trustee pursuant to the Warehouse Agreement or
Eligible Lender Trust Agreement, as applicable from time to time, and the Seller desires to sell
such FFELP Loans to the Purchaser, in accordance with the terms and conditions of this Loan
Purchase Agreement; and

WHEREAS, the Seller has previously financed its purchase of the FFELP Loans sold hereunder
through the funding made available under the Warehouse Agreement.

NOW, THEREFORE, in consideration of the premises and mutual covenants herein contained, the
parties agree as follows:

Section 1. Definitions.

“Administrative Agent” means Bank of America, N.A., as Administrative Agent under the
Warehouse Agreement, and any successor or assign in such capacity.

“Authoritative Copy” means, with respect to any Electronic Promissory Note, the electronic
record of such Electronic Promissory Note that has been designated by Seller as the authoritative
copy or controlling reference copy, which electronic record shall include, without limitation, an
electronic file containing (i) an electronic copy of the Promissory Note, (ii) either the Completed
Application or all data included in the Borrower’s Completed Application, (iii) the
Audit/E-Signature number or identifying information which identifies the Borrower providing the
E-Signature, (iv) if applicable, the account information of Seller with Equifax sufficient to allow
a third party access to the records maintained by Equifax with respect to such Promissory Note and
(v) a record of the obligor’s “check-box” election to use an electronic signature.

“Borrower” means the student or parent obligor under an Eligible Loan.

“Completed Application” means a fully completed application for a Stafford loan, a PLUS loan,
an SLS loan or a Consolidation Loan from a Borrower, together with, in the case of a Consolidation
Loan, properly completed LVCs from the holders of all education loans to be consolidated.

“Consolidation Loan” means a loan made under Section 428C of the Higher Education Act.

“Electronic Promissory Note” means any Promissory Note that is evidenced by an electronic
promissory note or an electronic record containing an electronic signature.

“Eligible Lender Trust Agreement” means the Eligible Lender Trust Agreement dated as of May 1,
2003, between the Trustee and the Seller.

 

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“Eligible Loan” means a FFELP Loan which (i) is Guaranteed; (ii) if such FFELP Loan is a
subsidized Stafford loan, qualifies the holder thereof to receive Interest Subsidy Payments and
Special Allowance Payments; if such FFELP Loan is a Consolidation Loan, qualifies the holder
thereof to receive Interest Subsidy Payments and Special Allowance Payments to the extent
applicable; and if such FFELP Loan is a PLUS loan authorized under Section 428B of the Higher
Education Act, a SLS loan authorized under Section 428A of the Higher Education Act, or an
unsubsidized Stafford loan authorized under Section 428H of the Higher Education Act, such FFELP
Loan qualifies the holder thereof to receive Special Allowance Payments; and (iii) complies with
each representation and warranty with respect thereto contained herein (including Section 3(a)).

“Federal Contracts” means all agreements between a Guarantee Agency and the Secretary of
Education providing for the payment by the Secretary of Education of amounts authorized to be paid
pursuant to the Higher Education Act, including, but not limited to, reimbursement of amounts paid
or payable upon defaulted Eligible Loans and other student loans guaranteed by any Guarantee Agency
and Interest Subsidy Payments and Special Allowance Payments, if applicable, to holders of
qualifying student loans guaranteed by any Guarantee Agency.

“FFEL Program” means the Federal Family Education Loan Program and any predecessor program
under the Higher Education Act.

“FFELP Loans” means those specific loans transferred by the Seller and the Trustee, on behalf
of the Seller, to the Purchaser pursuant to this Loan Purchase Agreement, inclusive of the
promissory notes evidencing such loans and the related documentation in connection with each
thereof, which were originated pursuant to the FFEL Program and the Higher Education Act.

“Guarantee” or “Guaranteed” means, with respect to a FFELP Loan, the guarantee by the
Guarantee Agency, in accordance with the terms and conditions of the Guarantee Agreement, of the
principal of and accrued interest on the FFELP Loan to the maximum extent permitted under the
Higher Education Act on FFELP Loans which have been originated, held and serviced in full
compliance with the Higher Education Act, and the coverage of the FFELP Loan by the Federal
Contracts providing, among other things, for reimbursement to the Guarantee Agency for losses
incurred by it on defaulted Eligible Loans guaranteed by it to the extent of the maximum
reimbursement allowed by the Federal Contracts.

“Guarantee Agency” means a state agency or a private nonprofit institution or organization
which administers a Guarantee Program within a State or any successors and assignees thereof
administering the Guarantee Program which has entered into a Guarantee Agreement with the Trustee
on behalf of the Seller.

“Guarantee Agreement” means the Federal Contracts, an agreement between a Guarantee Agency and
the Trustee providing for the Guarantee by such Guarantee Agency of the principal of and accrued
interest on Eligible Loans to Borrowers, made or acquired by the Trustee from time to time on
behalf of the Seller, and any other similar guarantee or agreement issued by a Guarantee Agency to
the Trustee, on behalf of the Seller, pertaining to Eligible Loans.

“Guaranteed Loans” means FFELP Loans that are Guaranteed.

“Guarantee Program” means a Guarantee Agency’s student loan guaranty program pursuant to which
such Guarantee Agency guarantees or insures student loans.

“Higher Education Act” shall mean Title IV, Parts B, F and G, of the Higher Education Act
of 1965, as amended or supplemented and in effect from time to time, or any successor enactment
thereto, and all regulations promulgated thereunder and any directives issued by the Secretary of
Education.

 

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“Interest Subsidy Payments” means interest subsidy payments authorized to be made by the
Secretary of Education pursuant to Section 428 of the Higher Education Act or similar payments
authorized by federal law or regulation.

“Loan Portfolio Statistical Schedule” means a written schedule on a form agreed to by the
Seller and the Purchaser identifying certain characteristics of each portfolio of FFELP Loans to be
purchased hereunder.

“Loan Purchase Agreement” means this Loan Purchase Agreement including all exhibits and
schedules attached hereto, and any addenda, supplements or amendments hereto.

“Loan Purchase Date” means the date as described in Section 2(b) hereof.

“Loan Transfer Schedule” means a written schedule on a form provided by the Seller or its
servicing agent identifying the Borrowers on the FFELP Loans to be purchased hereunder.

“LVC” means a loan verification certificate required to be obtained from the lender of each
loan to be consolidated with proceeds of a Consolidation Loan.

“Master Note” means a Master Promissory Note in the form mandated by Section 432(m)(1)(D) of
the Higher Education Act, as added by Pub. L. 105-244, § 427,112 Stat. 1702 (1998) as amended by
Public Law No: 106-554 (enacted December 21, 2000) and as codified at 20 U.S.C. § 1082(m)(1).

“MPN Loan” means a FFELP Loan evidenced by a Master Note.

“Nelnet, Inc.” means Nelnet, Inc., a corporation organized and existing under the laws of the
State of Nebraska.

“Non-Consolidation Loans” means all FFELP Loans which are not Consolidation Loans.

“Promissory Note” means the form promissory note (in a form approved under the Higher
Education Act) pursuant to which a Borrower obtains a loan under the FFEL Program.

“Purchaser” means Union Bank and Trust Company, a Nebraska state bank and trust company,
acting individually and in its capacity as trustee.

“Secretary of Education” means the Commissioner of Education and the Secretary of the United
States Department of Education (who succeeded to the functions of the Commissioner of Education
pursuant to the Department of Education Organization Act), or any officer, board, body, commission
or agency succeeding to the functions thereof under the Higher Education Act.

“Seller” means Nelnet Education Loan Funding, Inc., f/k/a NEBHELP, INC., a Nebraska
corporation, and any successor or assign.

“Special Allowance Payments” means special allowance payments authorized to be made by the
Secretary of Education pursuant to Section 438 of the Higher Education Act or similar allowances
authorized from time to time by federal law or regulation.

“Trustee” means Wells Fargo Bank, National Association, acting in its capacity as Trustee
under the Warehouse Agreement or Eligible Lender Trust Agreement, as applicable, and not in its
individual capacity.

 

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“Warehouse Agreement” means the Amended and Restated Warehouse Note Purchase and Security
Agreement dated as of November 9, 2007, as the same may be amended or supplemented in accordance
with its terms, by and among the Trustee, as Trustee and Eligible Lender Trustee, the Seller as
Borrower, Bank of America, N.A. as Administrative Agent, and the conduit lenders, alternate lenders
and facility agents a party thereto from time to time.

Section 2. Purchase of FFELP Loans.

(a) Subject to the terms and conditions and in reliance upon the
representations, warranties and agreements set forth herein, the Seller agrees to
sell to the Purchaser, and the Purchaser agrees to buy from the Seller, a portfolio
of FFELP Loans which are Eligible Loans in the aggregate unpaid principal amount as
set forth in the Loan Transfer Addendum in the form set forth in Exhibit A hereto.
Additional portfolios of FFELP Loans may be purchased from the Seller hereunder by
the Purchaser from time to time in the future, if the parties hereto execute and
deliver a subsequent Loan Transfer Addendum for each such purchase of a portfolio in
the form set forth in Exhibit A hereto, reflecting the aggregate unpaid principal
balance of Eligible Loans contained in such portfolio and the Loan Purchase Date,
and if the Seller executes and delivers to the Purchaser all documents required
under Section 4 hereof as of the applicable Loan Purchase Date. Any subsequent
purchase of an additional portfolio of FFELP Loans shall be governed in all respects
by this Loan Purchase Agreement together with the Loan Transfer Addendum pertaining
to such portfolio. The Seller shall deliver a Loan Transfer Schedule and a Loan
Portfolio Statistical Schedule to the Purchaser, not less than thirty (30) days (or
such lesser number of days as shall be mutually agreeable to the Purchaser and the
Seller) prior to the applicable Loan Purchase Date. Consummation of the sale of each
FFELP Loan shall require execution and delivery to the Purchaser of the Seller’s
Closing Certificate in the form of Exhibit B hereto (and delivery of the documents
described in Exhibit B hereto), and the blanket endorsement and bill of sale (in the
forms set forth in Exhibits C and D hereto, respectively). It is the intention of
the Seller, and the Seller represents and warrants that it is the intention of the
Trustee, that the transfer from the Seller and the Trustee to the Purchaser
constitutes a true sale of the FFELP Loans hereunder and that neither the interest
in nor title to the FFELP Loans shall become or be deemed property of the Seller or
the Trustee for any purpose under applicable law.

(b) Delivery and payment for the FFELP Loans shall take place at a location and
on a date (the “Loan Purchase Date”) to be specified by the Purchaser. The
applicable Loan Purchase Date shall not be later than the date set forth in the Loan
Transfer Addendum pertaining to such FFELP Loans.

(c) Subject to the terms and conditions of this Loan Purchase Agreement, the
Purchaser agrees to purchase the FFELP Loans at a price equal to 100% of the
outstanding unpaid principal amount thereof and accrued and unpaid borrower interest
thereon on the Loan Purchase Date, or such other amount agreed upon and specified in
the Loan Transfer Addendum as set forth in Exhibit A. The Purchaser shall retain in
escrow that portion of the Purchase Price equal to the unguaranteed risk share
(2-3%) in accordance with the terms of that certain Assurance Commitment Agreement
of even date herewith (the “Assurance Commitment Agreement”) among Purchaser,
Nelnet, Inc., Farmers & Merchants Investment Inc. (and certain individual
shareholders thereof). The Seller shall be responsible for reporting to the
Secretary of Education and offsetting against Interest Subsidy Payments and Special
Allowance Payments made to the Seller by the Secretary of Education, or otherwise
paying to the Secretary of Education, with respect to each FFELP Loan sold
hereunder, the entire amount of (1) any lender origination fee or lender loan fee
required under the Higher Education Act, (2) any borrower

 

4

 

origination fee which is authorized to be charged by the Higher
Education Act, and (3) any amounts due the Secretary of Education by reason of
Section 427A(i) or Section 438(b)(2)(I)(v) of the Higher Education Act or any
successor provision or provision of similar import (collectively, the “Fees and
Rebatable Amounts”). Additionally, the Seller shall, as a condition to the purchase
by the Purchaser of any FFELP Loan, be required to pay to the Purchaser on the Loan
Purchase Date (by netting any such amount against the purchase price otherwise
payable) the amount of any such Fees and Rebatable Amounts which has not at that
time been used to offset such Special Allowance Payments or Interest Subsidy
Payments, to the extent that the Special Allowance Payments or Interest Subsidy
Payments received by the Purchaser in connection with such FFELP Loans would be
affected. Seller shall continue due diligence servicing in compliance with the
Higher Education Act, at Seller’s cost, up to the applicable Loan Purchase Date;
thereafter, servicing shall be paid for by, and shall be the responsibility of, the
Purchaser.

(d) Subject to the terms and conditions of this Loan Purchase Agreement, Seller
shall sell to the Purchaser all Eligible Loans made to the same Borrower(s) which
are held by or on behalf of Seller (serial loans).

(e) If Seller originates or purchases a FFELP Loan which is a Consolidation
Loan, and the proceeds of such Consolidation Loan are used to repay the principal
and interest due on a FFELP Loan sold by Seller to the Purchaser hereunder, then
Seller shall rebate the premiums, if any, paid by the Purchaser to Seller in
connection with the purchase of said FFELP Loan by paying to the Purchaser an amount
equal to the same percentage of the principal balance of said FFELP Loan then
outstanding as was originally paid by the Purchaser therefor.

(f) The Eligible Loans purchased pursuant to this Loan Purchase Agreement shall
not be subject to any obligation by Purchaser to sell the same pursuant to that
certain Amendment of Agreements dated as of February 4, 2005 between National
Education Loan Network, Inc. and Purchaser.

(g) Purchaser shall honor all Borrower incentive or benefit programs originally
represented as being available to a Borrower, including without limitation all
benefits or incentives for which the Borrower has qualified as well as all benefits
or incentives that were represented as being available but for which the Borrower
has not yet qualified (but qualifies for following the Loan Purchase Date).

Section 3. Representations, Warranties, Covenants and Agreements of the Seller.

(a) With respect to FFELP Loans sold on a Loan Purchase Date, the Seller hereby
makes the representations and warranties set forth in Exhibit E hereto as of such
Loan Purchase Date. Each representation, warranty, certification, covenant and
agreement contained in this Loan Purchase Agreement shall survive the applicable
Loan Purchase Date.

(b) The Seller shall not organize under the law of any jurisdiction other than
the State under which it is organized as of the date hereof (whether changing its
jurisdiction of organization or organizing under an additional jurisdiction) without
giving 30 days prior written notice of such action to the Purchaser. Before
effecting such change, the Seller shall prepare and file in the appropriate filing
office any financing statements or other statements necessary to continue the
perfection of the Purchaser’s interests in the FFELP Loans.

 

5

 

Section 4. Conditions of Purchase. The Purchaser’s obligation to purchase and pay for the
FFELP Loans hereunder as of the date hereof and any applicable Loan Purchase Date shall be subject
to each of the following conditions precedent:

(a) All representations, warranties and statements by or on behalf of the
Seller contained in this Loan Purchase Agreement shall be true as of the date hereof
and on the applicable Loan Purchase Date.

(b) Any notification to or approval by the Secretary of Education or a
Guarantee Agency required by the Higher Education Act or a Guarantee Agreement as a
condition to the assignment of the FFELP Loans shall have been made or received and
evidence thereof delivered to the Purchaser.

(c) The entire interest of the Seller and the Trustee in each FFELP Loan shall
have been duly assigned by endorsement in the form set forth in Exhibit C hereto,
such endorsement to be without recourse except as provided in Section 6 hereof and
in the Assurance Commitment Agreement.

(d) Physical custody and possession of the FFELP Loans (including all
information and documentation which is described in the Seller’s Closing Certificate
as specified in Exhibit B hereto) shall be transferred in the manner directed by the
Purchaser. Unless otherwise agreed upon by the Seller and the Purchaser, the Seller
and the Purchaser agree that physical custody of the FFELP Loans will remain with
the existing servicers at the time of sale.

(e) Delivery by the Seller to the Purchaser on or before the date hereof of the
following documentation: Seller’s Closing Certificate in the form of Exhibit B
hereto; blanket endorsement in the form of Exhibit C hereto; bill of sale in the
form of Exhibit D hereto; and UCC termination statements or releases, if any,
releasing any security interest granted by the Seller in any FFELP Loan.

(f) Delivery by the Seller to the Purchaser, prior to the Loan Purchase Date,
of a fully executed and completed Loan Transfer Addendum substantially in the form
of Exhibit A hereto with respect to FFELP Loans referred to in the bill of sale, and
delivery of a Loan Transfer Schedule and a Loan Portfolio Statistical Schedule as
required in Section 2(a) hereof.

(g) The Purchaser shall receive an opinion of the Seller’s and Nelnet’s
counsel, dated as of the first Loan Purchase Date (and as of any other Loan Purchase
Date for which the Purchaser requests), in form and substance satisfactory to the
Purchaser, to the effect that (i) this Student Loan Purchase Agreement has been duly
authorized, executed and delivered by the Seller and Nelnet and constitutes the
legal, valid, binding and enforceable obligation of the Seller and Nelnet, (ii) the
blanket endorsement and bill of sale required by this Student Loan Purchase
Agreement have been duly authorized, executed and delivered by the Seller, (iii) to
the knowledge of such counsel, the execution and delivery of this Student Loan
Purchase Agreement, the consummation of the transactions therein contemplated and
compliance with the terms, conditions and provisions of this Student Loan Purchase
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 the Seller or
Nelnet, as applicable, or any agreement or instrument to which the Seller or Nelnet,
as applicable, is a party or by which it is bound or constitute a default
thereunder, (iv) to the knowledge of such counsel, neither the
Seller nor Nelnet, as applicable, is 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 the Seller or Nelnet, as applicable, to perform its
obligations under this Student Loan Purchase Agreement, and (v) no consent, approval
or authorization of any government or governmental body, including, without
limitation, the Federal Deposit Insurance Corporation, the Comptroller of the
Currency, the Board of Governors of the Federal Reserve System or any state bank
regulatory agency, is required in connection with the consummation of the
transactions contemplated in this Student Loan Purchase Agreement.

 

6

 

Section 5. Rejection of FFELP Loans.

(a) If (i) the Seller is unable to make or furnish the representations and
warranties required to be made or furnished by it pursuant to this Loan Purchase
Agreement as to a FFELP Loan or (ii) the Purchaser determines that the Seller is
unable to fulfill one or more covenants or conditions of this Loan Purchase
Agreement as to a FFELP Loan, or (iii) the Purchaser, in its reasonable judgment,
deems that a FFELP Loan does not comply with the terms and conditions of this Loan
Purchase Agreement or is not being delivered in compliance with such terms and
conditions, or (iv) the Purchaser, in its reasonable judgment deems that a FFELP
Loan is for any reason unacceptable to it, then the Purchaser, within thirty days of
the Loan Purchase Date, may refuse to accept and pay for such FFELP Loan (or any
substitute FFELP Loan offered by the Seller in lieu thereof).

(b) If the Purchaser rejects a FFELP Loan, any such FFELP Loan shall be
returned to the Seller by registered mail (for repurchase pursuant to Section 6
hereof if the student loan has previously been purchased by the Purchaser), together
with a letter identifying each returned FFELP Loan and stating the basis for its
return. The Purchaser shall cause any FFELP Loan returned to the Seller which has
been endorsed to the Purchaser to be endorsed by the Purchaser to the Trustee on
behalf of the Seller in the form set forth in Exhibit F hereto.

The liability of the Purchaser in connection with the loss of or damage to any FFELP Loan to
be returned to the Seller is limited to such loss or damage occurring as a result of its gross
negligence or willful misconduct in handling or safekeeping FFELP Loans.

Section 6. Repurchase Obligation. If:

	 	(i)	 	any representation or warranty made or furnished by the
Seller in or pursuant to this Loan Purchase Agreement (including
Section 3(a) hereof) shall prove to have been materially incorrect;

	 	(ii)	 	the Secretary of Education or a Guarantee Agency, as
the case may be, refuses to honor all or part of a claim filed with
respect to a FFELP Loan (including any claim for Interest Subsidy
Payments, Special Allowance Payments, reinsurance or Guarantee
payments) on account of any circumstance or event that occurred prior
to the sale of such FFELP Loan to the Purchaser;

	 	(iii)	 	on account of any circumstance or event that occurred
prior to the sale of a FFELP Loan to the Purchaser, a defense is
asserted by a Borrower (or endorser, if any) of the FFELP Loan with
respect to Borrower’s
obligation to pay all or any part of the FFELP Loan, and the
Purchaser, in good faith, believes that the facts reported, if true,
raise a reasonable doubt as to the legal enforceability of such
FFELP Loan;

 

7

 

	 	(iv)	 	a Guarantor refuses to honor all or part of a claim
filed with respect to a Guaranteed Loan on account of any circumstance
or event that occurred prior to the sale of such Student Loan to the
Purchaser;

	 	(v)	 	a FFELP Loan is required to be repurchased pursuant to
subsection 5(b) hereof; or

	 	(vi)	 	the instrument which Seller purports to be a FFELP Loan
is not, in fact, a FFELP Loan;

then the Seller shall repurchase such FFELP Loan or purported FFELP Loan upon the request of the
Purchaser by paying to the Purchaser the then outstanding principal balance of such FFELP Loan or
purported FFELP Loan multiplied by the percentage used to calculate the purchase price specified in
the applicable Loan Transfer Addendum (or such greater amount as may be necessary to make the
Purchaser whole in light of the purchase price originally paid by the Purchaser for such loan),
plus interest on the purchase price with respect to such Student Loan or purported Student Loan
from the Loan Purchase Date to and including the date of repurchase at a rate equal to the LIBOR
Rate (as defined in the Financing Agreement) plus 0.45%, plus any attorneys’ fees, legal expenses,
court costs, servicing fees or other expenses incurred by the Purchaser in connection with such
Student Loan or purported Student Loan, less any income received by the Purchaser with respect to
such Student Loan from the Loan Purchase Date to and including the date of repurchase, plus
interest (including Interest Subsidy Payments) and applicable Special Allowance Payments with
respect to such FFELP Loan or purported FFELP Loan from the Loan Purchase Date to and including the
date of repurchase, plus any amounts owed to the Secretary of Education with respect to the
repurchased FFELP Loan or purported FFELP Loan, plus any attorneys’ fees, legal expenses, court
costs, servicing fees or other expenses incurred by the Purchaser in connection with such FFELP
Loan or purported FFELP Loan.

Section 7. Notification to Borrowers. The servicing agent on behalf of the Seller shall
notify Borrowers under the FFELP Loans as required by the Higher Education Act of the assignment
and transfer to the Purchaser of the Seller’s and Trustee’s interest in such FFELP Loans and the
Seller shall direct, and if appropriate shall cause the Trustee to direct, each Borrower to make
all payments thereon directly to the Purchaser or as it may otherwise designate.

Section 8. Obligations To Forward Payments and Communications.

(a) The Seller shall promptly remit, or cause to be remitted, to the Purchaser
all funds received by the Seller after the applicable Loan Purchase Date which
constitute payments of principal or interest (including Interest Subsidy Payments)
or Special Allowance Payments accrued after the applicable Loan Purchase Date with
respect to any FFELP Loan.

(b) The Seller shall immediately transmit to the Purchaser any communication
received by the Seller after the applicable Loan Purchase Date with respect to a
FFELP Loan or the Borrower under such a FFELP Loan. Such communication shall
include, but not be limited to, letters, notices of death or disability,
adjudication of bankruptcy and similar documents and forms requesting deferment of
repayment or loan cancellations.

 

8

 

Section 9. Payment of Expenses and Taxes. Each party to this Loan Purchase Agreement shall
pay its own expenses incurred in connection with the preparation, execution and delivery of this
Loan Purchase Agreement and the transactions herein contemplated, including, but not limited to,
the fees and disbursements of counsel; provided, however, that Seller shall pay any transfer or
other taxes and recording or filing fees payable in connection with the sale and purchase of the
FFELP Loans.

Section 10. Indemnification. The Seller agrees to indemnify and save the Purchaser
(together with its successors, assignees, officers, directors, agents and employees) harmless of,
from and against any and all loss, liability, cost, damage or expense, including reasonable
attorneys’ fees and costs of litigation, and any amounts payable to the Secretary of Education, to
the extent such loss, liability, cost, damage or expense is not covered by amounts paid pursuant to
Section 5 or 6 hereof, incurred by reason of any breach of the Seller’s warranties, representations
or covenants hereunder or any false or misleading representations of the Seller or any failure to
disclose any matter which makes the warranties and representations herein misleading or any
inaccuracy in any information furnished by the Seller in connection herewith. This indemnity
obligation shall survive the termination of this Agreement or removal of the Trustee.

Section 11. Special Provisions Relating to MPN Loans.

(a) The Seller hereby represents and warrants that the Seller is transferring
all of its right title and interest in the MPN Loans to the Purchaser, that it has
not assigned any interest in such MPN Loans (other than security interests that have
been released or ownership interests that the Seller has reacquired) to any person
other than the Purchaser, and that no prior holder of the MPN Loans has assigned any
interest in such MPN Loans (other than security interests that have been released or
ownership interests that such prior holder has reacquired) to any person other than
a predecessor in title to the Seller. The Seller hereby covenants that the Seller
shall not attempt to transfer to any other person any interest in any MPN Loan
assigned hereunder.

(b) The Seller hereby authorizes the Purchaser to file a UCC-1 financing
statement identifying the Seller as debtor and the Purchaser as secured party and
describing the MPN Loans and other FFELP Loans sold pursuant to this Loan Purchase
Agreement. The preparation or filing of such UCC-1 financing statement is solely for
additional protection of the Purchaser’s interest in the MPN Loans and other FFELP
Loans and shall not be deemed to contradict the express intent of the Seller and the
Purchaser that the transfer of MPN Loans and other FFELP Loans under this Loan
Purchase Agreement is an absolute assignment of such MPN Loans and other FFELP Loans
and is not a transfer of such MPN Loans and other FFELP Loans as security for a
debt.

Section 12. Other Provisions.

(a) The Seller shall, at its expense, furnish to the Purchaser and the
Administrative Agent such additional information concerning the Seller’s student
loan portfolio as the Purchaser or the Administrative Agent may reasonably request.

(b) The Seller shall, and shall cause the Trustee to, at Seller’s expense,
execute all other documents and take all other steps as may be requested by the
Purchaser, the Administrative Agent or the Trustee from time to time to effect the
sale hereunder of the FFELP Loans.

(c) The provisions of this Loan Purchase Agreement cannot be waived or modified
unless such waiver or modification be in writing and signed by the parties hereto.
Inaction or failure to demand strict performance shall not be deemed a waiver.

 

9

 

(d) This Loan Purchase Agreement shall be governed by the laws of the State of
Nebraska.

(e) All covenants and agreements herein contained shall extend to and be
obligatory upon all successors of the respective parties hereto.

(f) This Loan Purchase Agreement may be simultaneously executed in several
counterparts, each of which shall be an original and all of which shall constitute
but one and the same instrument.

(g) If any provision of this Loan Purchase Agreement shall be held, deemed to
be or shall, in fact, be inoperative or unenforceable as applied in any particular
situation, such circumstances shall not have the effect of rendering the provision
in question inoperative or unenforceable in any other situation or of rendering any
other provision or provisions herein contained invalid, inoperative or unenforceable
to any extent whatsoever. The invalidity of any one or more phrases, sentences,
clauses or paragraphs herein contained shall not affect the remaining portions of
this Loan Purchase Agreement or any part hereof.

(h) All notices, requests, demands or other instruments which may or are
required to be given by any party to another shall be in writing, and each shall be
deemed to have been properly given when served personally on an officer of the party
to whom such notice is given or upon expiration of a period of 48 hours from and
after the postmark thereof when mailed, postage prepaid, by registered or certified
mail, requesting return receipt, by overnight courier, or by telecopy, addressed as
follows:

If to the Seller:

Nelnet Education Loan Funding, Inc.

121 South 13th Street, Suite 201

Lincoln, Nebraska 68508

Attention: Terry J. Heimes

Telephone: (402) 458-2301

Facsimile: (402) 458-2294

with a copy to the Trustee

If to the Trustee:

Wells Fargo Bank, National Association

Corporate Trust Services

6th & Marquette, N9303-110

Minneapolis, Minnesota 55479

Attention: Scott E. Ulven

Telephone: 612-667-4802

Facsimile: 612-667-2149

 

10

 

If to the Administrative Agent:

Bank of America, N.A.

The Hearst Tower

214 North Tryon Street

NC1-027-19-01

Charlotte, NC 28255

Attention: Banc of America Securities, LLC

Global Structured Finance; Portfolio Management

If to the Purchaser:

Union Bank and Trust Company

6801 South 27th Street

Lincoln, Nebraska 68512

Attention: Ken Backemeyer

Telephone: 402/ 483-8234

Facsimile: 402/ 483-8286

Any party may change the address and name of the addressee to which subsequent
notices are to be sent to it by notice to the others given as aforesaid, but any
such notice of change, if sent by mail, shall not be effective until the fifth day
after it is mailed.

(i) This Loan Purchase Agreement may not be terminated by any party hereto
except in the manner and with the effect herein specifically provided for.

(j) Time is of the essence in this Loan Purchase Agreement.

(k) This Loan Purchase Agreement may not be amended without prior written
consent of the parties.

(l) This Loan Purchase Agreement shall not be assignable by the Seller, in
whole or in part, without the prior written consent of the Purchaser.

(m) No remedy by the terms of this Loan Purchase Agreement conferred upon or
reserved to the Purchaser is intended to be exclusive of any other remedy, but each
and every such remedy shall be cumulative and in addition to every other remedy
given under this Loan Purchase Agreement or existing at law or in equity (including,
without limitation, the right to such equitable relief by way of injunction) or by
statute on or after the date of this Loan Purchase Agreement.

(n) Acts to be taken by the Seller with respect to transferring title to FFELP
Loans hereunder shall include acts to be taken by the Trustee as directed by the
Seller, which qualifies as an “eligible lender” trustee under the Higher Education
Act, and all references herein and in the Loan Transfer Addendum to the Seller shall
incorporate by this reference the fact that the Trustee will be transferring title
to FFELP Loans on behalf of the Seller, all in accordance with the Higher Education
Act. The Seller has advised the Trustee of the foregoing and the Trustee has agreed
to comply therewith.

 

11

 

Section 13. Information and Reporting. Seller will make available to the Purchaser upon
request: (a) upon execution of this Agreement, Seller’s and Nelnet, Inc.’s most recent audited
financial statement prepared in accordance with generally accepted accounting principles and duly
certified by nationally recognized independent certified public accountants selected by Seller or
Nelnet, Inc., as appropriate; (b) as soon as available and in any event within 90 days after the
end of each fiscal year of
the Seller and Nelnet, Inc., an updated audited financial statement prepared in accordance with
generally accepted accounting principles and duly certified by nationally recognized independent
certified public accountants selected by Seller or Nelnet, Inc., as appropriate; and (c) such other
financial information as the Purchaser may reasonably request from time to time. Seller shall
verify and reconcile FFELP Loan disbursements and cancellations of FFELP Loans sold hereunder, in
such manner as the Purchaser may reasonably request from time to time. Each of Seller and or
Nelnet, Inc. shall furnish to the Purchaser a certificate of good standing and a certified copy of
resolutions of the board of directors of Seller (or equivalent action) approving and authorizing
execution and performance of this Loan Purchase Agreement (in the case of the Seller) and all
ancillary documents with respect thereto in a form reasonably satisfactory to the Purchaser.

Section 14. Consolidation Loans. Subsequent to the date which is 90 days after the Loan
Purchase Date with respect to the each sale of FFELP Loans, neither the Seller nor any of its
affiliates shall, directly or indirectly, without the Purchaser’s prior written consent, either
make or attempt to make Consolidation Loans to any borrower which consolidates any FFELP Loans
owned by or on behalf of the Purchaser or any of its affiliates. Neither the Seller nor any of its
affiliates shall use or transfer to any other person or entity information with respect to
borrowers on FFELP Loans purchased by Purchaser hereunder.

[THE REMAINDER OF THIS PAGE IS INTENTIONALLY LEFT BLANK.]

 

12

 

IN WITNESS WHEREOF, the parties have hereunto set their hands as of the day and year first
above written.

	 	 	 	 	 	 	 	 	 	 	 	 	 
	Union Bank and Trust Company,	 	Nelnet Education Loan Funding, Inc., f/k/a	 	 
	Individually and as Trustee	 	 NEBHELP, INC.	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 
	By:	 	/s/ Kenneth L. Backemeyer	 	By:	 	/s/ Terry J. Heimes	 	 
	 	 	 	 	 	 	 	 	 
	 

	 	Title:
	 	Senior Vice President
	 	 	 	Title:
	 	Chief Financial Officer	 	 

 

13

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