Document:

Exhibit 10.1

	               ROSENTHAL & ROSENTHAL, INC.

                          Financing Agreement

AGREEMENT dated October 9, 2002 between SURGE COMPONENTS, INC. ("Borrower"),
a corporation duly organized and presently existing in good standing under
the laws of the State of New York whose chief executive office is at 95 East
Jefryn Blvd., Deer Park, NY 11729, and ROSENTHAL & ROSENTHAL, INC.
("Lender"), a New York corporation with an address at 1370 Broadway, New
York, New York 10018.

	 Borrower desires to obtain loans and other financial accommodations
from Lender on a revolving basis upon the security of the "Collateral" as
herein defined. Now, therefore, Borrower and Lender agree as follows.

Section 1 DEFINITIONS

	 As used in this Agreement, these terms shall have the following
meanings which shall be applicable to both the singular and plural forms of
such terms.

	1.1  "Account Debtor" shall mean the account debtor with respect to
a Receivable and any other person who is obligated on such Receivable.

	1.2  "Advance Percentage" shall mean the percentage specified in
Section 2.1 hereof.

	1.3  "Affiliate" of a party shall mean any entity controlling,
controlled by, or under common control with, the party, and the term
"controlling" and such variations thereof shall mean ownership of a majority
of the voting power of a party.

	1.4  "Business Day" shall mean a day on which Lender and major banks
in New York City are open for the regular transaction of business.

	1.5  "Default" shall have the meaning provided in Section 8.1
hereof.

	1.6  "Effective Rate" shall have the meaning provided in Section 3.1
hereof.

	1.7  "Eligible Inventory" shall mean Inventory owned by Borrower in
the regular course of its business which is and at all times shall continue
to be acceptable to Lender in all respects. Standards of eligibility may be
fixed and revised from time to time solely by Lender in its exclusive
judgment. In determining eligibility, Lender may, but need not, rely on
certificates of inventory and reports furnished by Borrower, but reliance
thereon by Lender from time to time shall not be deemed to limit Lender's
right to revise standards of eligibility at any time. In general, Inventory
shall not be deemed eligible unless it complies in all respects with the
representations, covenants and warranties hereinafter set forth, made by
Borrower with respect thereto.

	1.8  "Eligible Receivables" shall mean Receivables created by
Borrower in the regular course of its business which are and at all times
shall continue to be acceptable to Lender in all respects. Standards of
eligibility may be fixed and revised from time to time solely by Lender in
its exclusive judgment. In determining eligibility Lender may, but need not,
rely on ageings, reports and schedules of Receivables furnished by Borrower,
but reliance thereon by Lender from time to time shall not be deemed to
limit Lender's right to revise standards of eligibility at any time. In
general, a Receivable shall not be deemed eligible unless the Account Debtor
on such Receivable is and at all times continues to be acceptable to Lender
and unless each Receivable complies in all respects with the
representations, covenants and warranties hereinafter set forth.

	1.9  "GAAP" shall mean generally accepted accounting principles in
the United States of America as in effect from time to time as set forth in
the opinions and pronouncements of the Accounting Principles Board and the
American Institute of Certified Public Accountants and the elements and
pronouncements of the Financial Accounting Standards Board which are
applicable to the circumstances as of the date of determination consistently
applied.

	1.10  "Inventory" shall mean Inventory as defined in the Inventory
Security Agreement executed by Borrower in favor of Lender.

	1.11  "Loan Account" shall mean the Loan Account as described in
Section 2.1 hereof.

	1.12  "Margin" shall mean two (2%) percent per annum.

	1.13  "Maximum Credit Facility" shall mean $1,000,000.00.

	1.14  "Maximum Rate" shall have the meaning provided in Section 9.2
hereof.

	1.15  "Net Amount of Eligible Receivables" shall mean the gross
amount of Eligible Receivables less sales, excise or similar taxes, returns,
discounts, claims, credits and allowances of any nature at any time issued,
owing, granted, outstanding or claimed, and less (without duplication) all
amounts payable by any Account Debtor on Eligible Receivables if any
Eligible Receivable of such Account Debtor is unpaid more than ninety (90)
days following its invoice date.

	1.16  "Obligations" shall mean all obligations, liabilities and
indebtedness of Borrower to Lender or an Affiliate of Lender, however
evidenced, arising under this Agreement, under any other or supplemental
financing provided to Borrower by Lender or an Affiliate of Lender, or
independent hereof or thereof, whether now existing or incurred from time to
time hereafter and whether before or after termination hereof, absolute or
contingent, joint or several, matured or unmatured, direct or indirect,
primary or secondary, liquidated or unliquidated, and whether arising
directly or acquired from others (whether acquired outright, by assignment
unconditionally or as collateral security from another and including,
without limitation, participations or interest of Lender in obligations of
Borrower to others), and including (without limitation) all of Lender's
charges, commissions, fees, interest, expenses, costs and attorneys' fees
chargeable to Borrower in connection therewith.

	1.17  "Over-advance" shall mean any portion of all loans and
advances which on any day exceeds the product of the Advance Percentage
multiplied by the Net Amount of Eligible Receivables.

	1.18  "Person" shall mean any person, firm, corporation,
partnership, limited liability company, association, company, trust, estate,
custodian, nominee or other individual or entity.

	1.19  "Prime Rate" shall mean the prime rate from time to time
publicly announced in New York City by The Chase Manhattan Bank.

	1.20  "Receivables" shall mean all obligations to Borrower for the
payment of money arising out of the sale of goods or the rendering of
services by Borrower, now existing or hereafter arising, however evidenced,
including without limitation all accounts, contract rights, general
intangibles, documents, chattel paper and instruments (as each of such terms
is defined in the New York Uniform Commercial Code).

Section 2 LOANS

	2.1  Lender shall, in its discretion, make loans to Borrower from
time to time, at Borrower's request, which loans in the aggregate shall not
exceed the lesser of (i) eighty percent (80%) (the "Advance Percentage") of
the Net Amount of Eligible Receivables which have been validly assigned to
Lender and in which Lender holds a perfected security interest pursuant to
the terms hereof ranking prior to and free and clear of all interests,
claims, and rights of others; and (ii) the Maximum Credit Facility. The
making of any loan in excess of the Advance Percentage shall not be deemed
to modify the Advance Percentage or create any obligation to make any
further such loan. All loans (and all other amounts chargeable to Borrower
under this Agreement or any supplement hereto) shall be charged to a Loan
Account in Borrower's name on Lender's books. Lender shall render to
Borrower each month a statement of the Loan Account (and all credits and
charges thereto) which shall be considered correct and accepted by Borrower
and conclusively binding upon Borrower as an account stated except to the
extent that Lender receives a written notice by registered mail of
Borrower's exceptions within 30 days after such statement has been mailed by
ordinary mail to Borrower.

Section 3 LENDER'S CHARGES

	3.1  Borrower agrees to pay to Lender each month interest (computed
on the basis of the actual number of days elapsed over a year of 360 days)
on the average daily balances in the Loan Account during the preceding month
at a rate per annum (the "Effective Rate") equal to the Prime Rate plus the
Margin. The Effective Rate shall increase or decrease by one quarter of one
percent (1/4 of 1%) per annum for each increase or decrease, respectively,
of one-quarter of one per cent (1/4 of 1%) per annum in the Prime Rate;
provided, however, that no decrease shall reduce the Effective Rate to less
than the Prime Rate plus the Margin; and provided further, that no decrease
in the Prime Rate below 4.75% per annum shall be given any effect. Any
change in the Effective Rate due to a change in the Prime Rate shall take
effect on the date of such change in the Prime Rate.

	3.2  Borrower shall pay to Lender an annual facility fee in the
amount of 1% percent of the Maximum Credit Facility payable on the closing
date and on each anniversary of the closing date thereafter.

	3.3  A statement of all of Lender's charges shall accompany each
monthly statement of the Loan Account and such charges shall be payable by
Borrower within 5 days after receipt of such statement. In lieu of the
separate payment of charges, Lender at its option, shall have the right to
debit the amount of such charges to Borrower's Loan Account, which charges
shall be deemed to be first paid by amounts subsequently credited to the
Loan Account. As more fully provided in Section 9.2 hereof, in no event
shall the interest charges hereunder exceed the Maximum Rate.

	3.4  Borrower shall pay to Lender a monthly unused line fee in the
amount of one-quarter of one percent (1/4 of 1%) of the difference between
the Maximum Credit Facility and the average daily balance of the Loan
Account during each month, which amount shall be due and payable monthly in
arrears on the first day of each month.

Section 4 SECURITY INTEREST IN COLLATERAL

	4.1  As security for the prompt performance, observance and payment
in full of all of the Obligations, Borrower grants to Lender a security
interest in, a continuing lien upon and a right of setoff against, and
Borrower hereby assigns, transfers, pledges and sets over to Lender
(collectively, including any other assets of Borrower in which Lender may be
granted a security interest, the "Collateral"): (i) all Receivables (whether
or not Eligible Receivables and whether or not specifically listed on any
schedules, assignments or reports furnished to Lender), (ii) all of
Borrower's property, and the proceeds thereof, now or hereafter held or
received by or in transit to Lender or held by others for Lender's account,
including any and all deposits, balances, sums and credits of Borrower with,
and any and all claims of Borrower against, Lender, at any time existing,
(iii) all credit insurance policies, and all other insurance and all
guarantees relating to the Receivables or other Collateral, (iv) all books,
records and other general intangibles evidencing or relating to Receivables
or other Collateral; all deposits, or other security for the obligation of
any person under or relating to Receivables, all of the Borrower's rights
and remedies of whatever kind or nature it may hold or acquire for the
purpose of securing or enforcing Receivables; all right, title and interest
of the Borrower in and to all goods relating to, or which by sale have
resulted in, Receivables, including goods returned by or reclaimed or
repossessed from Account Debtors and all goods described in copies of
invoices delivered by Borrower to Lender; all rights of stoppage in transit,
replevin, repossession and reclamation and all other rights and remedies of
an unpaid vendor or lienor, and all proceeds of any Letter of Credit naming
Borrower as beneficiary and which provides for, guarantees or assures the
payment of any Receivable; (v) all general intangibles whether or not
arising out of the sale of goods or rendition of services, and including
without limitation choses in action, causes of action, tax refunds (and
claims), and reversions from terminated pension plans; and (vi) all proceeds
of such Collateral, in any form, including, without limitation, cash,
non-cash items, checks, notes, drafts and other instruments for the payment
of money. Such security interest in favor of Lender shall continue during
the term of this Agreement and until payment in full of all Obligations,
whether or not this Agreement shall have sooner terminated.

	4.2  At Lender's request, Borrower will mark its ledger cards, books
of account and other records relating to Receivables with appropriate
notations satisfactory to Lender disclosing that the Receivables have been
assigned to Lender and will provide Lender with confirmatory assignment
schedules in form satisfactory to Lender, copies of customers' invoices,
evidence of shipment or delivery, and such further information as Lender may
require. Borrower will take any and all steps and observe such formalities
as Lender may request from time to time to create and maintain in Lender's
favor a valid and first lien upon, security interest in and pledge of all of
Borrower's Receivables and all other Collateral, including without
limitation by way of filing financing statements and other notices and
amendments and renewals thereof that may be requested by Lender to maintain
such security interest in and pledge of the Collateral.

Section 5 CUSTODY AND INSPECTION OF COLLATERAL AND RECORDS;
	COLLECTION AND HANDLING OF COLLATERAL

	5.1  Until Borrower's authority so to do is terminated at any time
by notice from Lender, Borrower will, at its own expense and on Lender's
behalf, collect as Lender's property and in trust for Lender all payments
and prepayments on Receivables, and shall not commingle such collections
with Borrower's own funds. As to all moneys so collected, including all
prepayments by customers, Borrower shall on the day received remit all such
collections to Lender in the form received. All amounts collected on
Receivables when received by Lender shall be credited to Borrower's Loan
Account, adding three Business Days for collection and clearance of
remittances. Such credits shall be conditional upon final payment to Lender.
Nothing contained in this Section 5.1, or otherwise in the Agreement, shall
be deemed to limit Lender's rights and powers pursuant to Section 7 of the
Agreement.

	5.2  All records, ledger sheets, correspondence, contracts and
documentation relating to or evidencing Receivables shall, until delivered
to Lender or removed by Lender from Borrower's premises, be kept on
Borrower's premises, without cost to Lender, in appropriate containers in
safe places, bearing suitable legends identifying them and all related
files, containers, receptacles and cabinets as being under Lender's dominion
and control. Lender shall at all reasonable times have full access to and
the right to examine and make copies of Borrower's books and records, to
confirm and verify all Receivables assigned to Lender and to do whatever
else Lender deems necessary to protect its interest. Lender may at any time
remove from Borrower's premises, or require Borrower to deliver any
contracts, documentation, files and records relating to Receivables, or
Lender may, without cost or expense to Lender, use such of Borrower's
personnel, supplies and space at Borrower's places of business as may be
reasonably necessary for collection of Receivables.

	5.3  Borrower will immediately upon obtaining knowledge thereof
report to Lender all reclaimed, repossessed or returned merchandise, Account
Debtor claims and any other matter affecting the value, enforceability or
collectibility of Receivables. Any merchandise reclaimed or repossessed by
or returned to Borrower will, at the cost and expense of Borrower, be set
aside marked with the name of the Lender and will be held by Borrower for
the account of Lender and subject to Lender's security interest. All claims
and disputes relating to Receivables are to be promptly adjusted by Borrower
with the prior approval of Lender and within a reasonable time, at its own
cost and expense. Lender may, at its option, settle, adjust or compromise
claims and disputes relating to Receivables which are not adjusted by
Borrower within a reasonable time.

	5.4  Borrower shall reimburse Lender on demand for all costs of
collection incurred by Lender in efforts to enforce payment of Receivables,
recovery of or realization upon any other Collateral, including attorneys'
fees and the fees and commissions of collection agencies. All and any fees,
costs and expenses, of whatever kind and nature, including taxes of any
kind, which Lender may incur in filing public notices (including appraisal
fees and advertising costs), and the reasonable charges of any attorney whom
Lender may engage in preparing and filing documents, making title or lien
examinations and rendering opinion letters, as well as expenses incurred by
Lender (including all attorneys' fees and including Lender's out of pocket
expenses in conducting periodic field examinations of Borrower and the
collateral plus Lender's prevailing per diem charge for each of its
examiners in the field and office, now $750 per person per day), in
protecting, maintaining, preserving, enforcing or foreclosing the pledge,
lien and security interest granted to Lender hereunder, whether through
judicial proceedings or otherwise, or enforcing or collecting the
Receivables, or recovery of or realization upon any other Collateral, or in
defending or prosecuting any actions or proceedings arising out of or
related to its transactions with Borrower, including actions or proceedings
which may involve any person asserting a priority or claim with respect to
the Collateral, shall be borne and paid for by Borrower on demand, shall
constitute part of the Obligations and may at Lender's option be charged to
Borrower's Loan Account.

Section 6 REPRESENTATIONS, COVENANTS AND WARRANTIES

	As an inducement to Lender to enter into this Agreement, Borrower
represents, covenants and warrants (which shall survive the execution and
delivery of this Agreement) that:

	6.1  Borrower is a corporation duly organized and presently existing
in good standing under the laws of the State of New York and is duly
qualified and existing in good standing in every other state in which the
nature of Borrower's business requires it to be qualified.

	6.2  The execution, delivery and performance of this Agreement are
within the corporate powers of Borrower, have been duly authorized by
appropriate corporate action and are not in contravention of the terms of
Borrower's charter or by-laws or of any indenture, agreement or undertaking
to which Borrower is a party or by which it may be bound. Borrower warrants
that it is and covenants that it shall remain solvent at all times while
this Agreement is in effect.

	6.3  Borrower is and shall be, with respect to all Inventory, the
owner thereof free from any lien, security interest or encumbrance of any
kind, except in favor of Lender. Borrower (i) shall, at all times,  maintain
inventory which was acquired by Borrower not more than six months from the
date of purchase, which has a value (at lower of cost or market) aggregating
no less than $1,000,000, at Borrower's Deer Park location ; and (ii) may
maintain  in each of the locations set forth in Exhibit "A" hereto ("Exhibit
"A") inventory having values (at lower of cost or market) of not more than
the values specified in Exhibit "A" for each location. No Receivable or any
other Collateral has been or shall hereafter be assigned, pledged or
transferred to any person other than the Lender or in any way encumbered or
subject to a security interest except to Lender and Borrower shall defend
the same against the claims of all persons.

	6.4  Borrower's books and records relating to the Receivables are
maintained at the office referred to below. Except as otherwise stated
below, the principal executive office of Borrower is located at such address
and has been so located on a continuous basis for not less than six months.
Borrower shall not change such location without Lender's prior written
consent, and, upon making any such change, Borrower agrees to execute any
additional financing statements or other documents or notices which Lender
may require.

	6.5  All loans and advances requested by Borrower under this
Agreement shall be used for the general corporate and business purposes of
Borrower and shall in no event be requested or used by Borrower for the
specific purpose of paying wages of the employees of Borrower.

	6.6    Borrower shall maintain its shipping forms, invoices and
other related documents in a form satisfactory to Lender and shall maintain
its books, records and accounts in accordance with sound accounting
practice. Borrower shall furnish to Lender (a) accounts receivable agings
(i) weekly, not later than Wednesday of each week covering the previous
week; and (ii) monthly, not later than the 10th of each month, covering the
previous month; and (b) inventory designations (i) weekly, not later than
Wednesday of each week, covering the period through Friday of the previous
week; and (ii) monthly, not later than the 10th of each month, covering the
previous month.  Borrower shall furnish to Lender such other information
regarding the business affairs and financial condition of Borrower as Lender
may, from time to time, reasonably request, including, without limitation
(a) audited financial statements prepared on at the end of and for each
fiscal year of Borrower, as soon as practical and in any event within 90
days after the end of each such fiscal year, in such detail and scope as
Lender may require including without limitation, a balance sheet, a
statement of income, a statement of cash flows and notes, prepared by
independent Certified Public Accountants acceptable to Lender; and
concurrently with such financial statements, a written statement signed by
such independent public accountants to the effect that, (i) in making the
examination necessary for their opinion of such financial statements, they
have not obtained any knowledge of the existence of any Event of Default, or
(ii) if such independent public accountants shall have obtained from such
examination any such knowledge, they shall disclose in such written
statement the Event of Default and the nature thereof, (b) financial
statements prepared internally as at the end of and for each fiscal
quarterly period of Borrower, as soon as practical and in any event within
45 days after the end of each such fiscal quarter of Borrower, in such
detail and scope as Lender may require including without limitation, a
balance sheet, a statement of income, a statement of cash flows and notes,
certified by the Chief Financial Officer of Borrower ("CFO"); and
concurrently with such financial statements, a written statement signed by
the CFO to the effect that, (i) such CFO has not obtained any knowledge of
the existence of any Event of Default, or (ii) if such CFO has obtained from
such examination any such knowledge, such CFO shall disclose in such written
statement the Event of Default and the nature thereof.  All such  statements
and information shall fairly present the financial condition of Borrower,
and the results of its operations as of the dates and for the periods, for
which the same are furnished.

	6.7  Borrower shall duly pay and discharge all taxes, assessments,
contributions and governmental charges upon or against it or its properties
or assets prior to the date on which penalties attach thereto. Borrower
shall be liable for any tax (excluding a tax imposed on the overall net
income of Lender) imposed upon any transaction under this Agreement or
giving rise to the Receivables or which Lender may be required to withhold
or pay for any reason and Borrower agrees to indemnify and hold Lender
harmless with respect thereto, and to repay Lender on demand the amount
thereof, and until paid by Borrower shall be added to the Obligations
secured hereunder, and may at Lender's option be charged to Borrower's Loan
Account.

	6.8  With respect to each Receivable, Borrower hereby represents and
warrants that: each Receivable represents a valid and legally enforceable
indebtedness based upon an actual and bona fide sale and delivery of
property or rendition of services in the ordinary course of Borrower's
business which has been finally accepted by the Account Debtor and for which
the Account Debtor is unconditionally liable to make payment of the amount
stated in each invoice, document or instrument evidencing the Receivable in
accordance with the terms thereof, without offset, defense or counterclaim;
each Receivable will be paid in full at maturity; all statements made and
all unpaid balances appearing in any invoices, documents, instruments and
statements of account describing or evidencing the Receivables are true and
correct and are in all respects what they purport to be and all signatures
and endorsements that appear thereon are genuine and all signatories and
endorsers have full capacity to contract; the Account Debtor owing the
Receivable and each guarantor, endorser or surety of such Receivable is
solvent and financially able to pay in full the Receivable when it matures;
and all recording, filing and other requirements of giving public notice
under any applicable law have been duly complied with.

	6.9  Borrower shall until payment in full of all Obligations to
Lender and termination of this Agreement (a) cause to be maintained at the
end of each fiscal quarter (ie, February, May, August, November), Tangible
Net Worth in an amount not less than $4,250,000 and (b) cause to be
maintained at the end of each such fiscal quarter, Working Capital of not
less than $2,000,000.

	For the purpose hereof the following terms shall have the following
definitions:

	"Current Assets" at a particular date shall mean cash, accounts,
marketable securities and inventory of Borrower providing however, that such
amounts shall not include any amounts for any indebtedness owing by any
affiliate to Borrower.

	"Current Liabilities" at a particular date shall mean all amounts
which would, in conformity with GAAP, be included under current liabilities
or on a balance sheet of Borrower, as at such date, but in any event
including, without limitation or duplications, the amounts of (a) all
indebtedness payable on demand, or at the option of the person or entity to
whom such indebtedness is owed, not more than twelve (12) months after such
date, (b) any payments in respect of any indebtedness (whether installment,
serial maturity, sinking fund payment or otherwise) required to be made not
more than twelve (12) months after such date, (c) all reserves in respect of
liabilities or indebtedness payable on demand or, at the option of the
person or entity to whom such indebtedness is owed, not more than twelve
(12) months after such date, the validity which is not contested to such
date, (d) all accruals for federal or other taxes measured by income payable
within twelve (12) months of such date and (e) all outstanding indebtedness
to Lender.

	"Tangible Net Worth" shall mean,  at a particular date (a) the
aggregate amount of all assets of Borrower as may be properly classified as
such in accordance with GAAP consistently applied excluding such other
assets as are properly classified as intangible assets under GAAP, less (b)
the aggregate amount of all liabilities of Borrower (excluding subordinated
liabilities to Lender) determined in accordance with GAAP.

	"Working Capital" shall mean the excess, if any, of Current Assets
less Current Liabilities.

Section 7 SPECIFIC POWERS OF LENDER

	7.1  Borrower hereby constitutes Lender or its agent, or any other
person whom Lender may designate, as Borrower's attorney, at Borrower's own
cost and expense to exercise at any time all or any of the following powers
which, being coupled with an interest, shall be irrevocable until all
Obligations have been paid in full: (a) to receive, take, endorse, assign,
deliver, accept and deposit, in Lender's or Borrower's name, any and all
checks, notes, drafts, remittances and other instruments and documents
relating to Receivables and proceeds thereof; (b) to receive, open and
dispose of all mail addressed to Borrower and to notify postal authorities
to change the address for delivery thereof to such address as Lender may
designate; (c) to transmit to Account Debtors indebted on Receivables notice
of Lender's interest therein and to request from such Account Debtors at any
time, in Borrower's name or in Lender's or that of Lender's designee,
information concerning the Receivables and the amounts owing thereon; (d) to
notify Account Debtors to make payment directly to Lender; (e) to take or
bring, in Borrower's name or Lender's, all steps, actions, suits or
proceedings deemed by Lender necessary or desirable to effect collection of
the Receivables; and (f) to sign on behalf of the Borrower one or more
financing statements (or amendments to financing statements) under the
Uniform Commercial Code. In addition, to the extent permitted by law, Lender
may file one or more financing statements signed only by Lender, naming
Borrower as debtor and Lender as secured party and indicating therein the
types or describing the items of collateral covered by this Agreement.
Without limitation of any of the powers enumerated above, Lender is hereby
authorized to accept and to deposit all collections in any form, relating to
Receivables, received from or for the account of Account Debtors (whether
such collections are remitted directly to Lender by Account Debtors or are
forwarded to Lender by Borrower), including remittances  which may reflect
deductions taken by Account Debtors, regardless of amount, the Loan Account
of Borrower to be credited only with amounts actually collected on
Receivables in accordance with Section 5.1. Borrower hereby releases (i) any
bank, trust company or other firm receiving or accepting such collections in
any form, and (ii) Lender and its officers, employees and designees, from
any liability arising from any act or acts hereunder or in furtherance
hereof, whether of omission or commission, and whether based upon any error
of judgment or mistake of law or fact.

Section 8 LENDER'S REMEDIES UPON BORROWER'S DEFAULT

	8.1  Borrower agrees that all of the loans and advances made by
Lender under the terms of this Agreement, together with all Obligations of
Borrower as defined herein (unless otherwise provided in any instrument
evidencing the same or agreement relating thereto), shall be payable by
Borrower at Lender's demand at the office of Lender in New York, New York.
In addition, all Obligations shall be, at Lender's option, due and payable
without notice or demand upon termination of this Agreement or upon the
occurrence of any one or more of the following events of default
("Default"): (a) if Borrower shall fail to pay to Lender when due any
amounts owing to Lender under any Obligation, or shall breach any of the
terms, covenants, conditions or provisions of this Agreement or any other
agreement between the parties; (b) if any guarantor, endorser or other
person liable on the Obligations shall die, terminate its guaranty or shall
breach any of the terms, covenants, conditions or provisions of any
guarantee, endorsement or other agreement of such person with, or in favor
of, Lender; (c) if any representation, warranty, or statement of fact made
to Lender at any time by or on behalf of Borrower is false or misleading in
any material respect; (d) if Borrower shall become insolvent, is generally
unable to pay its debts as they mature, files or has filed against it a
petition in bankruptcy, liquidation or reorganization, or if a judgment
against Borrower remains unpaid, unstayed or undismissed for a period of
more than five days, or if Borrower discontinues doing business for any
reason, or if a custodian, receiver or trustee of any kind is appointed for
it or any of its property; (e) if there is a change (by voluntary transfer,
death or otherwise) in Borrower's controlling stockholders or owners; or (f)
if at any time Lender shall, in its sole discretion, reasonably exercised,
consider the Obligations insecure or any part of the Receivables unsafe,
insecure or insufficient and Borrower shall not on demand furnish other
collateral or make payment on account, satisfactory to Lender. Upon the
occurrence of any Default, (i) Borrower shall pay to Lender, as liquidated
damages and as part of the Obligations, a charge at the rate of two percent
per month upon the unpaid balance of the Obligations from the date of
Default until the date of full payment of the Obligations, which charge
shall be in lieu of compensation payable under Section 3.1 from such date;
provided, that in no event shall such rate exceed the Maximum Rate, (ii)
Borrower shall pay to Lender all costs, disbursements, charges and expenses
for the collection and enforcement of the Obligations, and for the
protection and enforcement of Lender's security interest, including
attorneys' fees, all of which shall be added to and deemed part of the
Obligations, and (iii) Lender shall have the right (in addition to any other
rights Lender may have under this Agreement or otherwise) without further
notice to Borrower, to enforce payment of any Receivables, to settle,
compromise, or release in whole or in part, any amounts owing on
Receivables, to prosecute any action, suit or proceeding with respect to
Receivables, to extend the time of payment of any and all Receivables, to
make allowances and adjustments with respect thereto, to issue credits in
Lender's name or Borrower's, to sell, assign and deliver the Receivables (or
any part thereof) and any returned, reclaimed or repossessed merchandise or
other property held by Lender or by Borrower for Lender's account, at public
or private sale, at broker's board, for cash, upon credit or otherwise, at
Lender's sole option and discretion, and Lender may bid or become purchaser
at any such sale if public, free from any right of redemption which is
hereby expressly waived. Borrower agrees that the giving of five days'
notice by Lender, sent by ordinary mail, postage prepaid, to the mailing
address of Borrower set forth in this Agreement, designating the place and
time of any public sale or the time after which any private sale or other
intended disposition of the Receivables or any other security held by Lender
is to be made, shall be deemed to be reasonable notice thereof and Borrower
waives any other notice with respect thereto. The net cash proceeds
resulting from the exercise of any of the foregoing rights or remedies shall
be applied by Lender to the payment of the Obligations in such order as
Lender may elect, and Borrower shall remain liable to Lender for any
deficiency.

	8.2  The enumeration of the foregoing rights and remedies is not
intended to be exhaustive, and such rights and remedies are in addition to
and not by way of limitation of any other rights or remedies Lender may have
under the New York Uniform Commercial Code or other applicable law. Lender
shall have the right, in its sole discretion, to determine which rights and
remedies, and in which order any of the same, are to be exercised, and to
determine which Receivables are to be proceeded against and in which order,
and the exercise of any right or remedy shall not preclude the exercise of
any others, all of which shall be cumulative. No act, failure or delay by
Lender shall constitute a waiver of any of its rights and remedies. No
single or partial waiver by Lender of any provision of this Agreement, or
breach or default thereunder, or of any right or remedy which Lender may
have shall operate as a waiver of any other provision, breach, default,
right or remedy or of the same provision, breach, default, right or remedy
on a future occasion. Borrower waives presentment, notice of dishonor,
protest and notice of protest of all instruments included in or evidencing
any of the Obligations or the Receivables and any and all notices or demands
whatsoever (except as expressly provided herein). Lender may, at all times,
proceed directly against Borrower to enforce payment of the Obligations and
shall not be required to first enforce its rights in the Receivables or any
other security granted to it. Lender shall not be required to take any
action of any kind to preserve, collect or protect its or Borrower's rights
in the Receivables or any other security granted to it.

	8.3  BORROWER HEREBY WAIVES ALL RIGHTS TO A TRIAL BY JURY IN THE
EVENT OF ANY LITIGATION WITH RESPECT TO ANY MATTER CONNECTED WITH THIS
AGREEMENT, THE OBLIGATIONS, THE RECEIVABLES, OR ANY OTHER TRANSACTION
BETWEEN THE PARTIES AND BORROWER HEREBY IRREVOCABLY CONSENTS TO THE
JURISDICTION OF THE COURTS OF THE STATE OF NEW YORK AND OF ANY FEDERAL COURT
LOCATED IN SUCH STATE IN CONNECTION WITH ANY ACTION OR PROCEEDING ARISING
OUT OF OR RELATING TO THIS AGREEMENT, OR THE OBLIGATIONS. IN ANY SUCH
LITIGATION BORROWER WAIVES PERSONAL SERVICE OF ANY SUMMONS, COMPLAINT OR
OTHER PROCESS AND AGREES THAT SERVICE THEREOF MAY BE MADE BY CERTIFIED OR
REGISTERED MAIL DIRECTED TO BORROWER AT ITS PLACE OF BUSINESS SET FORTH
ABOVE. WITHIN 30 DAYS AFTER SUCH MAILING, BORROWER SHALL APPEAR IN ANSWER TO
SUCH SUMMONS, COMPLAINT OR OTHER PROCESS, FAILING WHICH BORROWER SHALL BE
DEEMED IN DEFAULT AND JUDGMENT MAY BE ENTERED BY LENDER AGAINST BORROWER FOR
THE AMOUNT OF THE CLAIM AND OTHER RELIEF REQUESTED THEREIN.

Section 9 EFFECTIVE DATE, CONTROLLING LAW AND TERMINATION

	9.1  This Agreement shall become effective upon acceptance by Lender
at its office in the State of New York, and shall continue in full force and
effect until May 31, 2004 (the "Renewal Date") and from year to year
thereafter, unless sooner terminated as herein provided. Borrower may
terminate this Agreement on the Renewal Date or on the anniversary of the
Renewal Date in any year by giving Lender at least sixty (60) days' prior
written notice by registered or certified mail, return receipt requested,
and in addition to its other rights hereunder, Lender shall have the right
to terminate this Agreement at any time by giving Borrower thirty (30) days'
prior written notice. Should a Default occur hereunder, this Agreement will
be terminable by Lender at any time and Borrower shall, upon any such
termination by Lender, pay to Lender, as additional liquidated damages and
as part of the Obligations, an amount equal to 75% of Lender's average
monthly charges for the previous six months, or from the date of this
Agreement, whichever is less, multiplied by the number of months remaining
under this Agreement.  In the event that Lender shall permit termination of
this Agreement by Borrower other than as provided herein, as a condition to
such termination, Borrower shall pay to Lender such additional liquidated
damages in addition to performance of any other conditions to such
termination.  No termination of this Agreement, however, shall relieve or
discharge Borrower of its duties, obligations and covenants hereunder until
such time as all Obligations have been paid in full, and the continuing
security interest in Receivables and other Collateral granted to Lender
hereunder or under any other agreement shall remain in effect until such
Obligations have been fully discharged. No provision hereof shall be
modified or amended orally or by course of conduct but only by a written
instrument expressly referring hereto signed by both parties.

	9.2  ALL LOANS SHALL BE DISBURSED BY LENDER FROM ITS OFFICE IN THE
STATE OF NEW YORK, SHALL BE PAYABLE BY BORROWER AT SUCH OFFICE, AND THIS
AGREEMENT AND ALL TRANSACTIONS THEREUNDER SHALL BE DEEMED TO BE CONSUMMATED
IN SUCH STATE AND SHALL BE GOVERNED BY AND INTERPRETED IN ACCORDANCE WITH
THE LAWS OF THAT STATE.  If any part or provision of this Agreement is
invalid or in contravention of the applicable laws or regulations of any
controlling jurisdiction, such part or provision shall be severable without
affecting the validity of any other part or provision of this Agreement.
Notwithstanding any provision herein or in any related document, Lender
shall never be entitled to receive, collect, or apply, as interest on the
Loan Account, any amount in excess of the maximum rate of interest ("Maximum
Rate") permitted to be charged from time to time by applicable law (if such
law imposes any maximum rate), and in the event Lender ever receives,
collects, or applies as interest, any amount in excess of the Maximum Rate,
such amount shall be deemed and treated as a partial prepayment of the
principal of the Loan Account; and, if the principal of the Loan Account and
all other of Lender's charges other than interest are paid in full, any
remaining excess shall be paid to Borrower.

 	 IN WITNESS WHEREOF, Lender and Borrower have caused this Agreement
to be executed by their respective corporate officers thereto duly
authorized as of the day and year first above written.

                               SURGE COMPONENTS,INC.

                                 By:/s/Ira Levy
                                    ---------------------
                                    Title: President
Attest:

/s/Steven Lubman
-------------------
 Secretary

                               Accepted:

                               ROSENTHAL & ROSENTHAL, INC.

                               By:/s/Sheldon Kaye
                                  -------------------------
                                  Sheldon KayeLOAN PURCHASE AGREEMENT

        This Loan Purchase Agreement (the "Loan Purchase Agreement") made and
entered into as of this 1st day of September, 2002, by and between Nelnet
Student Loan Funding, LLC, a Delaware limited liability company (the
"Purchaser") acting by and through Zions First National Bank, not individually
but as eligible lender trustee (the "Trustee") under the Eligible Lender Trust
Agreement (as defined herein) and NELNET Student Loan Corporation-2, a
corporation organized and existing under the laws of the State of Nevada and
having its principal offices at 121 South 13th Street, Suite 301, in the city of
Lincoln, County of Lancaster, State of Nebraska (the "Seller").

                              W I T N E S S E T H :

        WHEREAS, the Purchaser, by and through the Trustee, desires to purchase
from the Seller certain FFELP Loans (as defined below) to assist students in
obtaining a post-secondary education, title to which will be held by the Trustee
pursuant to the Eligible Lender Trust Agreement, and the Seller desires to sell
certain FFELP Loans to the Purchaser, title to which will be held by and through
the Trustee, in accordance with the terms and conditions of this Loan Purchase
Agreement.

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

Section 1.  DEFINITIONS.

        "BORROWER" means the student or parent obligor under an Eligible Loan.

        "CERTIFICATE OF INSURANCE" means a certificate of federal loan insurance
issued with respect to an Eligible Loan by the Secretary of Education pursuant
to the provisions of the Higher Education Act.

        "CONTRACT OF INSURANCE" means an agreement between the Secretary of
Education and either the Trustee or the Seller providing for the insurance by
the Secretary of Education of the principal of and accrued interest on a FFELP
Loan to the maximum extent permitted under the Higher Education Act.

        "ELIGIBLE LENDER TRUST AGREEMENT" means the Eligible Lender Trust
Agreement dated as of May 1, 2002, by and between the Trustee and the Purchaser,
as the same may be amended, modified, supplemented, restated or otherwise
altered.

                                       1
<PAGE>

        "ELIGIBLE LOAN" means a FFELP Loan authorized to be acquired by the
Purchaser by and through the Trustee which (i) is either Insured or 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 authorized under Section 428C of the
Higher Education Act, 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; (iii) complies with each representation and warranty with respect
thereto contained herein; and (iv) meets the other criteria set forth in the
Loan Purchase Regulations and is eligible for purchase under the terms of the
Eligible Lender Trust Agreement.

        "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 insured or guaranteed by any
Guarantee Agency and federal interest subsidy payments and Special Allowance
Payments, if applicable, to holders of qualifying student loans guaranteed by
any Guarantee Agency.

        "FFELP LOANS" means those specific loans acquired by the Trustee, on
behalf of the Purchaser, from the Seller 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 Federal Family Education Loan 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
Purchaser.

        "GUARANTEE AGREEMENT" means the Federal Contracts, an agreement between
a Guarantee Agency and either the Trustee or the Seller 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 or the Seller from
time to time, and any other similar guarantee or agreement issued by a Guarantee
Agency to the Purchaser or the Trustee pertaining to Financed Eligible Loans.

                                       2
<PAGE>

        "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.

        "INSURANCE" or "INSURED" or "INSURING" means, with respect to a FFELP
Loan, the insuring by the Secretary of Education (as evidenced by a Certificate
of Insurance or other document or certification issued under the provisions of
the Higher Education Act) under the Higher Education Act of the principal of and
accrued interest on such FFELP Loan to the maximum extent permitted under the
Higher Education Act for FFELP Loans originated, held and serviced in full
compliance with the Higher Education Act.

        "INSURED LOANS" means FFELP Loans which are Insured.

        "INTEREST SUBSIDY PAYMENTS" means interest subsidy payments received
from the Secretary of Education pursuant to Section 428 of the Higher Education
Act or similar payments authorized by federal law or regulation.

        "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 PURCHASE REGULATIONS" means the rules and regulations of the
Purchaser, as may be adopted by the Purchaser from time to time (with the
consent of any persons required under the terms of the Eligible Lender Trust
Agreement), which pertain to the Program, which shall incorporate all
requirements specified in any indentures or other financing arrangements to
which the Purchaser is subject.

        "LOAN TRANSFER SCHEDULE" means a written schedule on a form provided by
the Purchaser or its servicing agent identifying the Borrower on the FFELP Loans
to be purchased hereunder.

        "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,ss. 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.ss. 1082(m)(1).

        "MPN LOAN" means a FFELP Loan evidenced by a Master Note.

                                       3
<PAGE>

        "PROGRAM" means the Purchaser's Eligible Loan acquisition program under
which the Trustee will acquire Eligible Loans to assist students in obtaining a
post-secondary education.

        "PURCHASER" means Nelnet Student Loan Funding, LLC, a Delaware limited
liability company.

        "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 Student Loan Corporation-2, a Nevada corporation,
which is performing this Loan Purchase Agreement by and through its eligible
lender trustee which is an "eligible lender" under the criteria established by
the Higher Education Act that has received an eligible lender designation by the
Secretary of Education with respect to Insured Loans or from a Guarantee Agency
with respect to Guaranteed Loans, identified in the introduction to this Loan
Purchase Agreement, which is selling FFELP Loans to the Purchaser hereunder.

        "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 Zions First National Bank acting in its capacity as
eligible lender trustee under the Eligible Lender Trust Agreement, and not in
its individual capacity.

        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 Trustee, acting on behalf of the Purchaser, and
        the Purchaser, acting by and through the Trustee under the Eligible
        Lender Trust Agreement on behalf of 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 by and through the Trustee 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 to the
        Purchaser, not less than thirty (30) days prior to the applicable Loan
        Purchase Date. Consummation of the sale of each FFELP Loan shall require

                                       4
<PAGE>

        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), the blanket endorsement and
        bill of sale as well as execution and delivery by the Seller in the
        forms set forth in Exhibits C and D hereto, respectively. It is the
        intention of the Seller that the transfer from the Seller to the Trustee
        on behalf of 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 for any purpose under
        applicable state or federal 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 by and
        through the Trustee at a price equal to 100% of the outstanding unpaid
        principal amount thereof on the Loan Purchase Date with proceeds from
        the obligations issued pursuant to the Eligible Lender Trust Agreement,
        or such other amount agreed upon and specified in the Loan Transfer
        Addendum as set forth in Exhibit A. The Seller shall be responsible for
        reporting to the Secretary of Education and, if required by the
        provisions of the Higher Education Act, offsetting against Interest
        Subsidy Payments and Special Allowance Payments made to the Seller by
        the Secretary of Education the entire amount of any origination fee
        which is authorized to be charged by the Higher Education Act with
        respect to the FFELP Loans sold hereunder. 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 the
        amount of any such origination fee 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 Trustee in connection with such FFELP Loans
        shall 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, by and through the
        Trustee, all Eligible Loans made to the same Borrower(s) which are held
        by or on behalf of Seller (serial loans).

                                       5
<PAGE>

               (e) If Seller originates or purchases a FFELP Loan which is a
        consolidation loan under Section 428C of the Higher Education Act, 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 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.

        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
        Closing Date (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.

        Section 4. CONDITIONS OF PURCHASE. The Purchaser's obligation to
purchase and pay for the FFELP Loans hereunder by and through the Trustee as of
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 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 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.

               (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.

                                       6
<PAGE>

               (e) The Purchaser shall receive an opinion of the Seller's
        counsel, dated as of the first Loan Purchase Date covering such first
        sale and any other sale of FFELP Loans, in form and substance
        satisfactory to the Purchaser and the Trustee to the effect that (i)
        this Loan Purchase Agreement has been duly authorized, executed and
        delivered by the Seller and constitutes the legal, valid, binding and
        enforceable obligation of the Seller, (ii) the blanket endorsement and
        bill of sale required by this Loan Purchase Agreement have been duly
        authorized, executed and delivered by the Seller, (iii) with respect to
        all Insured Loans being acquired, the applicable Contract of Insurance
        has been duly authorized, executed and delivered by the Seller, (iv)
        with respect to all Guaranteed Loans being acquired, the applicable
        Guarantee Agreement has been duly authorized, executed and delivered by
        the Seller, and (v) assuming the due execution and delivery thereof,
        each FFELP Loan constitutes the legal, valid and binding obligation of
        the Borrower (and of each endorser, if any) thereof, enforceable in
        accordance with its terms, (vi) to the knowledge of the Seller's
        counsel, the execution and delivery of this Loan Purchase Agreement, the
        consummation of the transactions therein contemplated and compliance
        with the terms, conditions and provisions of this 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 any agreement or instrument to which the Seller
        is a party or by which it is bound or constitute a default thereunder,
        (vii) to the knowledge of the Seller's counsel, the 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 the Seller to perform its obligations
        under this Loan Purchase Agreement, (viii) no consent, approval or
        authorization of any government or governmental body, including, without
        limitation, the Federal Deposit Insurance Corporation ("FDIC"), 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 Loan Purchase Agreement, (ix) this Loan Purchase Agreement shall
        constitute a security agreement under Nebraska law and shall be
        effective to create, in favor of the Purchaser, a perfected valid
        security interest in the FFELP Loans subject to no prior liens, (x) if
        the Purchaser and the Seller are affiliates, that if the Seller became a
        debtor under the United States Bankruptcy Code, 11 U.S.C. ss.ss. 101 et
        seq., as amended (the "Bankruptcy Code"), (1) Section 541(a)(1) of the
        Bankruptcy Code would not apply to deem the FFELP sold by the Seller to
        the Purchaser and the proceeds therefrom as property of the bankruptcy
        estate of the Seller and therefore (2) Section 362(a) of the bankruptcy
        Code would not apply to stay payment to the Purchaser or its assignees,
        (xi) if the Seller is the Parent of the Purchaser, that if the Seller
        became a debtor under the Bankruptcy Code, a court would not disregard
        the separate identity of the Purchaser so that the assets of the Seller
        would be consolidated with and become a part of the Seller's bankruptcy
        estate, and (xii) if the Seller is a bank or savings association the
        deposits of which are insured by the FDIC (a "Bank") and the FDIC were
        appointed as receiver or conservator of such Bank, a court would not
        recharacterize the transfer and assignment of the FFELP Loans to the
        Borrower as a pledge to secure a borrowing rather than a sale of the
        FFELP Loans.

                                       7
<PAGE>

               (f) Delivery by the Seller to the Purchaser on or before the
        applicable Loan Purchase Date 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; UCC-1 Financing Statements evidencing the transfer from the
        Seller to the Trustee on behalf of the Purchaser, and UCC lien searches
        sufficiently in advance of the Loan Purchase Date so as to permit review
        thereof by the Purchaser to its satisfaction, if either or both are
        requested by the Purchaser or a party to the Eligible Lender Trust
        Agreement; and UCC termination statements or releases, if any, to the
        extent necessary to release any security interest granted by the Seller
        in any FFELP Loan.

               (g) 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 as required in Section 2(a) hereof.

               (h) Adequate funds are available to the Purchaser to finance the
        purchase of FFELP Loans under this Loan Purchase Agreement.

               (i) Delivery by the Seller of a closing certificate dated as of
        the date of the first sale of FFELP Loans hereunder in form and
        substance satisfactory to the Purchaser and Trustee and a certificate
        dated as of the date of the first sale of FFELP Loans hereunder of the
        certificates attached to the true sale/non-consolidation opinion and the
        perfection opinion of Kutak Rock LLP, each dated October 8, 2002.

        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).

                                       8
<PAGE>

               (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 Trustee to be endorsed by the Trustee to 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 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, Insurance, reinsurance or
               Guarantee payments) on account of any circumstance or event that
               occurred prior to the sale of such FFELP Loan to the Purchaser by
               and through the Trustee;

               (iii) on account of any circumstance or event that occurred prior
               to the sale of a FFELP Loan to the Purchaser, by and through the
               Trustee, 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;

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

               (v) 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 in the applicable Loan Transfer
Addendum (or such greater amount as may be necessary to make the Purchaser and
the Trustee whole in light of the purchase price originally paid by the
Purchaser for such loan), plus interest and applicable Special Allowance

                                       9
<PAGE>

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 and the Trustee 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 Trustee of the
Seller's interest in such FFELP Loans and the Seller shall 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.

        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 specifically acknowledges that
the Purchaser, in obtaining financing, will be making representations and
warranties regarding the FFELP Loans based in part on the accuracy of the
Seller's representations and warranties in this Loan Purchase Agreement. The
Seller agrees to indemnify and save the Trustee, the Purchaser and the parties
to the Eligible Lender Trust Agreement (together with each of their respective
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, 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.

                                       10
<PAGE>

        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 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 shall not be deemed to contradict the
        express intent of the Seller and the Purchaser that the transfer of MPN
        Loans under this Loan Purchase Agreement is an absolute assignment of
        such MPN Loans and is not a transfer of such MPN Loans as security for a
        debt.

        Section 12.  OTHER PROVISIONS.

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

               (b) The Seller shall, at its expense, execute all other documents
        and take all other steps as may be requested by the Purchaser 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.

               (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.

                                       11
<PAGE>

               (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 either party to the other 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 Purchaser:

                      Nelnet Student Loan Funding, LLC
                      121 South 13th Street, Suite 401
                      Lincoln, Nebraska 68508
                      Attention: Terry J. Heimes
                      Telephone: (402) 458-2301
                      Facsimile:  (402) 458-2399

               with a copy to the Trustee at:

                      Zions First National Bank
                      Corporate Trust Division
                      717 17th Street, Suite 301
                      Denver, Colorado  80202
                      Attention: David W. Bata - VP & Trust Officer
                      Telephone: (720) 947-7475
                      Facsimile: (720) 947-7480

        If to the Seller, addressed in the manner as set forth in the first
        paragraph of this Loan Purchase Agreement.

                                       12
<PAGE>

        Either 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 either
        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  shall not be  assignable
        by the Seller, in whole or in part.

               (l) 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.

               (m) Acts to be taken by the Purchaser with respect to acquiring
        and holding title to FFELP Loans hereunder shall be taken by the Trustee
        as directed by the Purchaser, which qualifies as an "eligible lender"
        trustee under the Higher Education Act, and all references herein to the
        Purchaser shall incorporate by this reference the fact that the Trustee
        will be acquiring and holding title to FFELP Loans on behalf of the
        Purchaser, all as required under the Higher Education Act.

               (n) The parties hereto acknowledge that the Trustee and parties
        to the Eligible Lender Trust Agreement, shall be third party
        beneficiaries of this Loan Purchase Agreement with the power and right
        to enforce the provisions thereof, and the Trustee may become an
        assignee of the Purchaser. The foregoing creates a permissive right on
        the part of such third party beneficiaries, and such third party
        beneficiaries shall be under no duties or obligations hereunder.

               (o) This Loan Purchase Agreement has been made and entered into
        not only for the benefit of the Purchaser and Seller but also for the
        benefit of the Trustee in connection with the financing of Eligible
        Loans as defined in the Eligible Lender Trust Agreement, and upon
        assignment by the Purchaser to the Trustee, its provisions may be
        enforced not only by the parties to this Loan Purchase Agreement but by
        the Trustee. The foregoing creates a permissive right on behalf of the
        Trustee and the Trustee shall not be under any duties or obligations
        hereunder.

                                       13
<PAGE>

        This Loan Purchase Agreement shall inure to the benefit of the Trustee
        and its successors and assigns. Without limiting the generality of the
        foregoing, all representations, covenants and agreements in this Loan
        Purchase Agreement which expressly confer rights upon the Trustee shall
        be for the benefit of and run directly to, the Trustee, and the Trustee
        shall be entitled to rely on and enforce such representations, covenants
        and agreements to the same extent as if it were a party hereto. The
        foregoing creates a permissive right on behalf of the Trustee, the
        Trustee shall not be under any duties or obligations hereunder.

        Section 13. SECURITY INTEREST. The parties to this Agreement intend that
the conveyance of the Seller's right, title and interest in and to the FFELP
Loans sold pursuant to this Agreement (the "Student Loans") shall constitute an
absolute sale, conveying good title free and clear of any liens, claims,
encumbrances or rights of others from the Seller to the Purchaser. The parties
to this Agreement intend that the arrangements with respect to the Student Loans
shall constitute a purchase and sale of such Student Loans and not a loan. In
the event, however, that it were determined by a court of competent jurisdiction
that the transactions evidenced by this Agreement shall constitute a loan and
not a purchase and sale, the party receiving notice of such determination shall
give notice of such determination to the other party and to the Trustee. This
Agreement constitutes a "security interest" under Article 9 of the applicable
Uniform Commercial Code (the "UCC") and the Seller hereby grants to the
Purchaser a first priority "security agreement" under Article 9 of the
applicable UCC in all of the Seller's right, title and interest, whether now
owned or hereafter acquired, in, to and under all accounts, general intangibles,
chattel paper, instruments, documents, goods, investment property, money,
deposit accounts, certificates of deposit, letters of credit, advices of credit
and other property consisting of, arising from or related to the following
collateral property ("Granted Property"):

               (a)    all Student Loans;

               (b) all revenues and recoveries of principal from Student Loans,
        including all borrower payments and reimbursements of principal and
        accrued interest on default claims received from any Guarantor;

               (c) any other revenues and recoveries of principal and interest
        and other payments and reimbursements of principal and accrued interest
        received with respect to any Student Loan and any other collection of
        cash with respect to such Student Loan (including, but not limited to,
        Interest Subsidy Payments, Special Allowance Payments, finance charges
        and payments representing the repurchase of any Student Loan or rebate
        of premium thereon pursuant to this Agreement) received or deemed to
        have been received and all other cash collections, tax refunds and other
        cash proceeds of the Granted Property held in various funds and accounts
        created under this Agreement;

               (d) all other security interests or liens and property subject
        thereto from time to time, if any, purporting to secure payment of such
        Student Loans, whether pursuant to the contract related to such Student
        Loans or otherwise;

                                       14
<PAGE>

               (e) all documents, books, records and other information
        (including, without limitation, computer programs, tapes, disks, punch
        cards, data processing software and related property and rights)
        maintained with respect to Student Loans otherwise in respect of the
        Granted Property; and

               (f) all proceeds of the foregoing (including, but not by way of
        limitation, all cash proceeds, accounts, accounts receivable, notes,
        drafts, acceptances, chattel paper, checks, deposit accounts, insurance
        proceeds, condemnation awards, rights to payment of any and every kind,
        and other forms of obligations and receivables or other liquidated
        property which at any time constitute all or part or are included in the
        proceeds of any of the foregoing property).

        The Seller agrees that from time to time, at its expense, it will
properly execute and deliver all further instruments and documents (including,
without limitation, UCC-1 financing statements and custodian agreements with the
Servicer), and take all further action that the Purchaser may reasonably request
in order to perfect, protect or more fully evidence the Purchaser's interest in
the Granted Property or to enable the Purchaser to exercise or enforce any of
its rights hereunder.

        Section 14. INFORMATION AND REPORTING. Upon the Purchaser's request,
Seller shall furnish to the Purchaser: (a) Seller'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, as well as Seller's most recent unaudited
financial statement and balance sheet; (b) 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; and (c) such other financial information as the
Purchaser may reasonably request from time to time. Seller shall verify and
reconcile Eligible Loan disbursements and cancellations of Eligible Loans sold
hereunder, in such manner as the Purchaser may reasonably request from time to
time. Seller shall furnish to the Purchaser a certificate of good standing.

                                       15
<PAGE>

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

NELNET STUDENT LOAN CORPORATION-2            NELNET STUDENT LOAN FUNDING, LLC

                                             By: Nelnet Student Loan Funding
                                             Management Corporation as Manager
                                             and Special Member

By: /s/ Jeffrey R. Noordhoek                 By:/s/ Stephen F. Butterfield
   -------------------------------              -----------------------------
     Jeffrey R. Noordhoek                         Stephen F. Butterfield
     Vice President, Secretary, Treasurer         President

                                       16
<PAGE>

                      EXHIBIT A TO LOAN PURCHASE AGREEMENT

                             LOAN TRANSFER ADDENDUM

        This Loan Transfer Addendum (the "Addendum") is made and entered into as
of the ___ day of ___________, _____, by and between Nelnet Student Loan
Funding, LLC (the "Purchaser") and NELNET Student Loan Corporation-2 (the
"Seller").

        WHEREAS, the parties hereto entered into that Loan Purchase Agreement
dated as of ________________, ______, (the "Loan Purchase Agreement"), and the
Seller wishes to sell a portfolio of Eligible Loans (as defined in the Loan
Purchase Agreement) to the Purchaser, pursuant to and in accordance with the
terms and conditions of the Loan Purchase Agreement.

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

        1.     Definitions. All capitalized terms in this Addendum shall have
               the same meanings given to them in the Loan Purchase Agreement,
               unless otherwise specifically stated herein.

        2.     Purchase of Eligible Loans. Subject to the terms and conditions
               of the Loan Purchase Agreement and in reliance upon the
               representations, warranties and covenants as set forth in the
               Loan Purchase Agreement, the Seller agrees to sell to the
               Trustee, as trustee under the Eligible Lender Trust Agreement on
               behalf of the Purchaser, a portfolio of Eligible Loans identified
               in the Loan Transfer Schedule attached hereto, having an
               aggregate outstanding principal balance of approximately $______
               (the "Current Purchase Portfolio").

        3.     Purchase Price. Subject to the terms and conditions of the Loan
               Purchase Agreement, the Purchaser agrees to purchase the Eligible
               Loans in the Current Purchase Portfolio at a purchase price equal
               to ___% of the aggregate unpaid principal balance thereon plus
               100% of the accrued and unpaid interest thereon, each as of the
               Loan Purchase Date set forth in Section 4 hereof.

        4.     Loan Purchase Date. The Loan Purchase Date shall be no later
               than ____________, ______.

        5.     Representations and Warranties. The Seller hereby reconfirms all
               the representations and warranties set forth in the Loan
               Purchase Agreement as of the Loan Purchase Date set forth in
               Section 4 hereof.

                                       17
<PAGE>

        6.     Effect on Loan Purchase Agreement. This Addendum sets forth the
               terms of purchase and sale solely with respect to the Current
               Purchase Portfolio. This Addendum shall have no effect upon any
               other sale or purchase of any Eligible Loans consummated or
               contemplated prior to or after the Loan Purchase Date, and all
               other terms, conditions and agreements contained in the Loan
               Purchase Agreement shall remain in full force and effect. Prior
               or subsequent purchases and sales of Eligible Loans shall each
               be governed by a separate Loan Transfer Addendum.

        7.     Special Terms. [Reserved]

NELNET STUDENT LOAN CORPORATION-2          NELNET STUDENT LOAN FUNDING, LLC

                                           By:     Nelnet Student Loan Funding
                                           Management Corporation as Manager and
                                           Special Member

By:                                        By: /s/ Stephen F. Butterfield
   ----------------------------------         ---------------------------------
Title:                                            Stephen F. Butterfield
      -------------------------------             President

                                       18
<PAGE>

                      EXHIBIT B TO LOAN PURCHASE AGREEMENT

                          SELLER'S CLOSING CERTIFICATE

        (DO NOT COMPLETE) (the "Seller") does hereby certify that all
representations, warranties and statements by or on behalf of the Seller
contained in a certain Loan Purchase Agreement dated ____________________,
________ (the "Agreement"), by and between the Seller and Nelnet Student Loan
Funding, LLC (the "Purchaser"), are true and correct on and as of the Loan
Purchase Date, without exception or qualification whatsoever;

        FURTHERMORE, the Seller does hereby certify that the following
documents, where applicable to each FFELP Loan (as defined in the Agreement)
acquired under the Agreement, have heretofore been furnished to the Purchaser or
are simultaneously herewith delivered in accordance with the instructions of the
Purchaser, pursuant to subsection 4(d) of the Agreement:

Department of Education application or Guarantee Agency
        application, as supplemented
Interim note(s) for each Loan that is not an MPN Loan
        Payout note(s) for each Loan that is not an MPN Loan
Disclosure and Loan information statement
Certificate of Insurance and Contract of Insurance with
  respect to each Insured Loan (or certified copy thereof)
Guarantee Agreement, Agreement for Participation in the
  Guaranteed Loan Program and Notification of Loan
  Approval by the Guarantee Agency with respect to each
  Guaranteed Loan (or certified copy thereof)
Any other documentation held by the Seller relating to
  the history of such Eligible Loan
Secretary of Education and Guarantee Agency Loan
  Transfer Statements
Uniform Commercial Code financing statement, if any,
  securing any interest in an Eligible Loan to be Financed,
  and an executed termination statement related thereto
        Evidence of Loan disbursement
Any other document required to be submitted with a claim to the Guarantee
Agency.

        IN WITNESS WHEREOF, the undersigned has caused this Certificate to be
executed and delivered by an officer hereunto duly authorized as of the Loan
Purchase Date, _____.

               (DO NOT COMPLETE)
               ----------------
                NAME OF SELLER

               BY (DO NOT SIGN)
                  -------------
               TITLE  (DO NOT SIGN)
                      -------------

                                       19
<PAGE>

                      EXHIBIT C TO LOAN PURCHASE AGREEMENT

                             BLANKET ENDORSEMENT OF
                          STUDENT LOAN PROMISSORY NOTES

        Pursuant to the Loan Purchase Agreement dated _____________________, the
undersigned ("Seller"), by execution of this instrument, hereby endorses all
promissory notes purchased by Zions First National Bank as trustee (the
"Trustee") on behalf of Nelnet Student Loan Funding, LLC (the "Purchaser"). This
endorsement is in blank, unrestricted form. This endorsement is without
recourse, except as provided under the terms of the Loan Purchase 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 Trustee on behalf of 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 Trustee on behalf of the Purchaser from Seller, or
by attaching this instrument to the loan ledger schedule, as the Purchaser may
require or deem necessary.

        Dated this ___ day of ______________, _____.

                                       SELLER  (DO NOT COMPLETE)
                                       ------   ---------------

                                               (DO NOT SIGN)
                                               -------------
                                       SIGNATURE OF AUTHORIZED OFFICER OF SELLER
                                       -----------------------------------------

                                       20
<PAGE>

                      EXHIBIT D TO LOAN PURCHASE AGREEMENT

                                  BILL OF SALE

               FOR VALUE RECEIVED, Zions First National Bank, solely in its
capacity as trustee on behalf of NELNET Student Loan Corporation-2 (the
"Seller"), pursuant to the terms and conditions of that certain Loan Purchase
Agreement dated as of September 1, 2002 (the "Agreement") between the Seller and
Nelnet Student Loan Funding, LLC (the "Purchaser") does hereby grant, sell,
assign, transfer and convey to Zions First National Bank, solely in its capacity
as trustee (the "Trustee") on behalf of 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"),
        including the guarantee of the Loans issued by a guarantee agency
        pursuant to the Federal Family Education Loan Program (20 U.S.C. ss.
        1071 et seq.);

        (2)   All promissory notes and related documentation evidencing the
        indebtedness represented by such Loans; and

        (3)   All proceeds of the foregoing including, without limitation, all
        payments made by the obligor thereunder or with respect thereto, all
        guarantee payments made by any guarantee agency with respect thereto,
        and all interest benefit payments and special allowance payments with
        respect thereto made under Title IV, Part B, of the Higher Education Act
        of 1965, as amended, and all rights to receive such payments, but
        excluding any proceeds of the sale made hereby.

               TO HAVE AND TO HOLD the same unto the Trustee on behalf of 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.

               IN WITNESS WHEREOF, the Seller has caused this instrument to be
executed by one of its officers duly authorized to be effective as of the ____
day of ______, _____.

                                     Zions First National Bank, solely in
                                     its capacity as trustee on behalf of
                                     NELNET Student Loan Corporation-2

                             By:
                                    ----------------------------------------
                             Title:
                                    ----------------------------------------

                                       21
<PAGE>

                      EXHIBIT E TO LOAN PURCHASE AGREEMENT

                          REPRESENTATIONS, WARRANTIES,
                       COVENANTS AND AGREEMENTS OF SELLER

        A. Any information furnished by the Seller to the Purchaser, or the
Purchaser's agents with respect to a FFELP Loan, including the Loan Transfer
Schedule attached to the Loan Transfer Addendum, is true, complete and correct.

        B. The amount of the unpaid principal balance of each FFELP Loan is due
and owing, and no counterclaim, offset, defense or right to rescission exists
with respect to any FFELP Loan which can be asserted and maintained or which,
with notice, lapse of time or the occurrence or failure to occur of any act or
event could be asserted and maintained by the Borrower against the Trustee or
the Purchaser as assignee thereof. The Seller shall have taken all reasonable
actions to assure that no maker of a FFELP Loan has or may acquire a defense to
the payment thereof. No payment of principal or interest with respect to any
FFELP Loan is, as of the date hereof, more than 60 days delinquent and no
applicable payment of principal or interest with respect to any FFELP Loan will,
at the applicable Loan Purchase Date, be more than 60 days delinquent. No FFELP
Loan carries a rate of interest less than, or in excess of, the applicable rate
of interest required by the Higher Education Act. If the Higher Education Act
permits Sellers to charge an interest rate less than the applicable rate of
interest, no FFELP Loan purchased hereunder bears interest at a rate lower than
the applicable rate of interest; provided, however, that the Purchaser may
approve, in its sole discretion, in writing, interest reductions which are part
of a borrower repayment incentive program of Seller, the terms of which have
been fully described in detail and in writing to the Purchaser.

        C. Each FFELP Loan has been duly executed and delivered and constitutes
the legal, valid and binding obligations of the maker (and the endorser, if any)
thereof, enforceable in accordance with its terms.

        D. Each FFELP Loan complies in all respects with the requirements of the
Higher Education Act and the Loan Purchase Regulations and is an Eligible Loan,
as that term is defined in the Loan Purchase Agreement.

        E. The Seller or Seller's eligible lender trustee has applied for and
received the Secretary of Education's or a Guarantee Agency's designation, as
the case may be, as an "Eligible Lender" under the Higher Education Act, and the
Seller has entered into all agreements required to be entered into for
participation in the Federal Family Education Loan Program under the Higher
Education Act.

        F. The Seller and the Seller's eligible lender trustee on behalf of
Seller is the sole owner and holder of each FFELP Loan and has full right and
authority to sell and assign the same free and clear of all liens, pledges or
encumbrances; no FFELP Loan has been pledged or assigned for any purpose; and
each FFELP Loan is free of any and all liens, charges, encumbrances and security
interests of any description. The Purchaser has a valid and perfected first
priority security interest in the Pledged Collateral.

                                       22
<PAGE>

        G. Each FFELP Loan is either Insured or Guaranteed; such Insurance or
Guarantee, as the case may be, is in full force and effect, is freely
transferable as an incident to the sale of each FFELP Loan; all amounts due and
payable to the Secretary of Education or a Guarantee Agency, as the case may be,
have been or will be paid in full by the Seller, and none of the FFELP Loans has
at any time been tendered to either the Secretary of Education or any Guarantee
Agency for payment.

        H. There are no circumstances or conditions with respect to any FFELP
Loan, the Borrower thereunder or the creditworthiness of said Borrower that
would reasonably cause prudent private investors to regard any of the FFELP
Loans as an unacceptable investment, or adversely affect the value or
marketability thereof, the insurance thereof and any applicable Guarantee.

        I. Each FFELP Loan was made in compliance with all applicable local,
State and federal laws, rules and regulations, including, without limitation,
all applicable nondiscrimination, truth-in-lending, consumer credit and usury
laws.

        J. The Seller has carefully reviewed the Loan Purchase Regulations
supplied by the Purchaser and has complied with the Loan Purchase Regulations.

        K. The FFELP Loans pursuant to the Agreement include all Eligible Loans
of any one Borrower held by the Seller.

        L. The Seller has, and its officers acting on its behalf have, full
legal authority to engage in the transactions contemplated by the Loan Purchase
Agreement; the execution and delivery of the Loan Purchase Agreement, the
consummation of the transactions herein contemplated and compliance with the
terms, conditions and provisions of the 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 any agreement or
instrument to which the Seller is a party or by which it is bound or constitute
a default thereunder; the 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 the Seller to perform its
obligations under the Loan Purchase Agreement and the Loan Purchase Agreement
constitutes a valid and binding obligation of the Seller enforceable against it
in accordance with its terms, and no consent, approval or authorization of any
government or governmental body, including, without limitation, the Federal
Savings and Loan Insurance Corporation, 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 herein contemplated.

                                       23
<PAGE>

        M. The Seller is duly organized, validly existing and in good standing
under the laws of its applicable jurisdiction and has the power and authority to
own its assets and carry on its business as now being conducted.

        N. The Seller and any independent servicer have each exercised due
diligence and reasonable care in making, administering, servicing and collecting
the FFELP Loans, and the Seller has conducted a reasonable investigation of
sufficient scope and content to enable it duly to make the representations and
warranties contained in this Exhibit E. The Seller shall be solely responsible
for the payment of the costs and expenses incident to origination of FFELP
Loans, without any right of reimbursement therefor from the Purchaser.

        O. With respect to all Insured Eligible Loans being acquired, Insurance
is in effect with respect thereto; the applicable Contract and Certificates of
Insurance are valid and binding upon the parties thereto in all respects
material to the security for any bonds and/or notes issued by the Purchaser or
its assignee; and the Seller is not in default in the performance of any of its
covenants and agreements made in respect thereof.

        P. With respect to all Guaranteed Eligible Loans being acquired, a
Guarantee Agreement is in effect with respect thereto and is valid and binding
upon the parties thereto in all respects material to the security of the bonds
and/or notes issued by the Purchaser or its assignee to finance the FFELP Loans;
and the Seller is not in default in the performance of any of its covenants and
agreements made in such Guarantee Agreement.

        Q. The Seller does not (i) discriminate by pattern or practice against
any particular class or category of students by requiring, as a condition to the
receipt of a student loan, that a student or his family maintain a business
relationship with the Seller, except as may be permitted under applicable laws
or (ii) discriminate on the basis of race, gender, color, creed or national
origin.

        R. The FFELP Loans are a representative sample of all student loans held
by the Seller with respect to the educational institution attended by, or the
age, sex, race, national origin or place of residence of, the Borrower to whom
such loans were made, or with respect to any other identifying characteristic of
such Borrowers.

        S. Each instrument transferred to the Purchaser under the Loan Purchase
Agreement is a FFELP Loan which constitutes an Eligible Loan.

        T. No promissory note evidencing an Eligible Loan bears any apparent
evidence of forgery or alteration or is otherwise so irregular or incomplete as
to call into question its authenticity.

        U. Except as may have been disclosed by the UCC lien search required by
Section 4(f) hereof for the Seller, no other financing statements or assignment
filings naming the Seller as debtor or assignor under its legal name or trade
names has been filed.

        V. The fair salable value of the assets on a going concern basis of the
Seller and its subsidiaries, on a consolidated basis, as of the time of each
sale of FFELP Loans hereunder is in excess of the total amount of their
liabilities.

                                       24
<PAGE>

                      EXHIBIT F TO LOAN PURCHASE AGREEMENT

                                 ACKNOWLEDGMENT

The assignment of the within promissory note and related documents to (DO NOT
COMPLETE) under a Loan Purchase Agreement between ____________________ and
____________________, dated as of ____________________, _____, did not become
effective thereunder, and no rights in the same have been conveyed thereby.

        Dated:  (DO NOT COMPLETE)
                --- --- ---------

                                       25
<PAGE>

                      EXHIBIT A TO LOAN PURCHASE AGREEMENT

                             LOAN TRANSFER ADDENDUM

        This Loan Transfer Addendum (the "Addendum") is made and entered into as
of the 8th day of October, 2002, by and between Nelnet Student Loan Funding, LLC
(the "Purchaser") and NELNET Student Loan Corporation-2 (the "Seller").

        WHEREAS, the parties hereto entered into that Loan Purchase Agreement
dated as of September 1, 2002 (the "Loan Purchase Agreement"), and the Seller
wishes to sell a portfolio of Eligible Loans (as defined in the Loan Purchase
Agreement) to the Purchaser, pursuant to and in accordance with the terms and
conditions of the Loan Purchase Agreement.

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

        1.     Definitions. All capitalized terms in this Addendum shall have
               the same meanings given to them in the Loan Purchase Agreement,
               unless otherwise specifically stated herein.

        2.     Purchase of Eligible Loans. Subject to the terms and conditions
               of the Loan Purchase Agreement and in reliance upon the
               representations, warranties and covenants as set forth in the
               Loan Purchase Agreement, the Seller agrees to sell to the
               Trustee, as trustee under the Financing Agreement and the
               Eligible Lender Trust Agreement on behalf of the Purchaser, a
               portfolio of Eligible Loans identified in the Loan Transfer
               Schedule attached hereto, having an aggregate outstanding
               principal balance of approximately $1.2 billion (the "Current
               Purchase Portfolio").

        3.     Purchase Price. Subject to the terms and conditions of the Loan
               Purchase Agreement, the Purchaser agrees to purchase the Eligible
               Loans in the Current Purchase Portfolio at a purchase price equal
               to 101.72% of the aggregate unpaid principal balance thereon plus
               100% of the accrued and unpaid interest thereon, each as of the
               Loan Purchase Date set forth in Section 4 hereof.

        4.     Loan Purchase Date. The Loan Purchase Date shall be no later
               than October 8, 2002.

        5.     Representations and Warranties. The Seller hereby reconfirms all
               the representations and warranties set forth in the Loan
               Purchase Agreement as of the Loan Purchase Date set forth in
               Section 4 hereof.

        6.     Effect on Loan Purchase Agreement. This Addendum sets forth the
               terms of purchase and sale solely with respect to the Current
               Purchase Portfolio. This Addendum shall have no effect upon any
               other sale or purchase of any Eligible Loans consummated or
               contemplated prior to or after the Loan Purchase Date, and all
               other terms, conditions and agreements contained in the Loan
               Purchase Agreement shall remain in full force and effect. Prior
               or subsequent purchases and sales of Eligible Loans shall each
               be governed by a separate Loan Transfer Addendum.

                                       26
<PAGE>

        7.     Special Terms. [Reserved]

NELNET STUDENT LOAN CORPORATION-2         NELNET STUDENT LOAN FUNDING, LLC

                                           By: Nelnet Student Loan Funding
                                           Management Corporation as Manager and
                                           Special Member

By: /s/ Jeffrey R. Noordhoek               By: /s/ Stephen F. Butterfield
   ---------------------------------          --------------------------------
    Jeffrey R. Noordhoek                           Stephen F. Butterfield
    Vice President, Secretary, Treasurer           President

                                       27
<PAGE>

                          SELLER'S CLOSING CERTIFICATE

        NELNET Student Loan Corporation-2 (the "Seller") does hereby certify
that all representations, warranties and statements by or on behalf of the
Seller contained in a certain Loan Purchase Agreement dated September 1, 2002
(the "Agreement"), by and between the Seller and Nelnet Student Loan Funding,
LLC (the "Purchaser"), are true and correct on and as of the Loan Purchase Date,
without exception or qualification whatsoever;

        FURTHERMORE, the Seller does hereby certify that the following
documents, where applicable to each FFELP Loan (as defined in the Agreement)
acquired under the Agreement, have heretofore been furnished to the Purchaser or
are simultaneously herewith delivered in accordance with the instructions of the
Purchaser, pursuant to subsection 4(d) of the Agreement:

Department of Education application or Guarantee Agency
          application, as supplemented
Interim note(s) for each Loan that is not an MPN Loan
         Payout note(s) for each Loan that is not an MPN Loan
Disclosure and Loan information statement
Certificate of Insurance and Contract of Insurance with
  respect to each Insured Loan (or certified copy thereof)
Guarantee Agreement, Agreement for Participation in the
  Guaranteed Loan Program and Notification of Loan
  Approval by the Guarantee Agency with respect to each
  Guaranteed Loan (or certified copy thereof)
Any other documentation held by the Seller relating to
  the history of such Eligible Loan
Secretary of Education and Guarantee Agency Loan
  Transfer Statements
Uniform Commercial Code financing statement, if any,
  securing any interest in an Eligible Loan to be Financed,
  and an executed termination statement related thereto
        Evidence of Loan disbursement
Any other document required to be submitted with a claim to the Guarantee
Agency.

        IN WITNESS WHEREOF, the undersigned has caused this Certificate to be
executed and delivered by an officer hereunto duly authorized as of the Loan
Purchase Date, October 8, 2002.

                                          NELNET Student Loan Corporation-2

                                     By:  /s/ Jeffrey R. Noordhoek
                                          ----------------------------------
                                          Jeffrey R. Noordhoek
                                          Vice President, Secretary, Treasurer

                                       28
<PAGE>

                             BLANKET ENDORSEMENT OF
                          STUDENT LOAN PROMISSORY NOTES

        Pursuant to the Loan Purchase Agreement dated September 1, 2002, the
undersigned ("Seller"), by execution of this instrument, hereby endorses all
promissory notes purchased by Zions First National Bank as trustee (the
"Trustee") on behalf of Nelnet Student Loan Funding, LLC (the "Purchaser"). This
endorsement is in blank, unrestricted form. This endorsement is without
recourse, except as provided under the terms of the Loan Purchase 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 Trustee on behalf of 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 Trustee on behalf of the Purchaser from Seller, or
by attaching this instrument to the loan ledger schedule, as the Purchaser may
require or deem necessary.

        Dated this 8th day of October, 2002.

                                  Zions First  National  Bank, as trustee for
                                  NELNET Student Loan Corporation-2

                                   By:
                                         ---------------------------------
                                   Title:
                                         ---------------------------------

                                       29
<PAGE>

                                  BILL OF SALE

               FOR VALUE RECEIVED, NELNET Student Loan Corporation-2 (the
"Seller"), pursuant to the terms and conditions of that certain Loan Purchase
Agreement dated as of September 1, 2002 (the "Agreement") between the Seller and
Nelnet Student Loan Funding, LLC (the "Purchaser") does hereby grant, sell,
assign, transfer and convey to Zions First National Bank, solely in its capacity
as trustee (the "Trustee") on behalf of 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"),
        including the guarantee of the Loans issued by a guarantee agency
        pursuant to the Federal Family Education Loan Program (20 U.S.C. ss.
        1071 et seq.);

        (2) All promissory  notes and related  documentation  evidencing  the
        indebtedness represented by such Loans; and

        (3) All proceeds of the foregoing including, without limitation, all
        payments made by the obligor thereunder or with respect thereto, all
        guarantee payments made by any guarantee agency with respect thereto,
        and all interest benefit payments and special allowance payments with
        respect thereto made under Title IV, Part B, of the Higher Education Act
        of 1965, as amended, and all rights to receive such payments, but
        excluding any proceeds of the sale made hereby.

               TO HAVE AND TO HOLD the same unto the Trustee on behalf of 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.

               IN WITNESS WHEREOF, the Seller has caused this instrument to be
executed by one of its officers duly authorized to be effective as of the 8th
day of October, 2002.

                                    Zions First  National  Bank, as trustee for
                                    NELNET Student Loan Corporation-2

                                     By:
                                           ------------------------------------
                                     Title:
                                           ------------------------------------

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