Document:

exv10w13

 

Exhibit 10.13

Base Contract for Sale and Purchase of Natural Gas

This Base Contract is entered into as of the following date: July 1, 2006. The parties to
this Base Contract are the following:

	 	 	 	 	 
	Odyssey Energy Services, LLC

	 	and
	 	Eagle Rock Field Services, L.P.
	320 South Boston, Suite 840, Tulsa, Oklahoma 74103

	 	 	 	14950 Heathrow Forest Pkwy, Suite 111, Houston, TX 77032
	Duns Number: 199721957

	 	 	 	Duns Number: 619038898
	Contract Number: 070106-ERF-01

	 	 	 	Contract Number:
	U.S. Federal Tax ID Number: 20-2613189

	 	 	 	U.S. Federal Tax ID Number: 203609438
	 
	 	 	 	 
	Notices:
	 	 	 	 
	Odyssey Energy Services, LLC

	 	 	 	Address Same as Above
	Attn: Contract Administration

	 	 	 	Attn: Contracts Administration
	Phone: (918) 388.9494      Fax: (918) 388.9500

	 	 	 	Phone: (832-327-8000      Fax: (832)-327-8009
	 
	 	 	 	 
	Confirmations:
	 	 	 	 
	Odyssey Energy Services, LLC

	 	 	 	Address Same as Above
	Attn: Contract Administration

	 	 	 	Attn: William E. Puckett
	Phone: (918) 388.9494      Fax: (918) 388.9500

	 	 	 	Phone: (832)-327-8000      Fax: (832) 327-8009
	 
	 	 	 	 
	Invoices and Payments:
	 	 	 	 
	Odyssey Energy Services, LLC

	 	 	 	Address Same as Above
	Attn: Accounting Department

	 	 	 	Attn: Karen Callaway
	Phone: (918) 388.9488      Fax: (918 388.9500

	 	 	 	Phone: (832-327-8000)      Fax: (832s) 327-8009
	 
	 	 	 	 
	Wire Transfer or ACH Numbers (if applicable):
	 	 	 	 
	BANK: Wachovia Bank, N.A., Atlanta, GA

	 	 	 	BANK: Wells Fargo NA
	ABA: 061000227

	 	 	 	ABA: 121000248
	ACCT: 2000028308973

	 	 	 	ACCT: 4121184071
	Other Details: For credit to Odyssey Energy Services, LLC

	 	 	 	Other Details: f/a/o Eagle Rock Energy

This Base Contract incorporates by reference for all purposes the General Terms and Conditions for
Sale and Purchase of Natural Gas published by the North American Energy Standards Board. The
parties hereby agree to the following provisions offered in said General Terms and Conditions. In
the event the parties fail to check a box, the specified default provision shall apply. Select
only one box from each section:

	 	 	 	 	 	 	 	 	 	 	 
	Section 1.2

	 	 	 	 	 	Section 7.2	 	 	 	 
	Transaction

	 	þ
	 	Oral (default)
	 	Payment
	 	þ
	 	25th Day of Month following Month of delivery (default)
	Procedure

	 	o
	 	Written
	 	Date
	 	o
	 	___Day of Month following Month of delivery
	 
	 	 	 	 	 	 	 	 	 	 
	Section 2.5

	 	 	 	 	 	Section 7.2
	 	þ
	 	Wire transfer (default)
	Confirm

	 	þ
	 	2 Business Days after receipt (default)
	 	Method of
	 	þ
	 	Automated Clearinghouse Credit (ACH)
	Deadline

	 	o
	 	___Business Days after receipt
	 	Payment
	 	o
	 	Check
	 
	 	 	 	 	 	 	 	 	 	 
	Section 2.6

	 	o
	 	Seller (default)
	 	Section 7.7	 	 	 	 
	Confirming

	 	o
	 	Buyer
	 	Netting
	 	þ
	 	Netting applies (default)
	Party

	 	þ
	 	Odyssey Energy Services, LLC
	 	 	 	o
	 	Netting does not apply
	 
	 	 	 	 	 	 	 	 	 	 
	Section 3.2

	 	 	 	 	 	Section 10.3.1	 	 	 	 
	Performance

	 	þ
	 	Cover Standard (default)
	 	Early Termination
	 	þ
	 	Early Termination Damages Apply (default)
	Obligation

	 	o
	 	Spot Price Standard
	 	Damages
	 	o
	 	Early Termination Damages Do Not Apply
	 
	 	 	 	 	 	 	 	 	 	 
	Note: The following Spot Price Publication applies	 	Section 10.3.2	 	 	 	 
	to both of the immediately preceding.	 	Other Agreement	 	þ	 	Other Agreement Setoffs Apply (default)
	 

	 	 	 	 	 	Setoffs
	 	o
	 	Other Agreement Setoffs Do Not Apply
	 
	 	 	 	 	 	 	 	 	 	 
	Section 2.26

	 	 	 	 	 	Section 14.5	 	 	 	 
	Spot Price

	 	þ
	 	Gas Daily Midpoint (default)
	 	Choice Of Law
	 	 	 	Oklahoma
	Publication

	 	o
	 	: ___	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	Section 6

	 	þ
	 	Buyer Pays At and After Delivery Point (default)
	 	Section 14.10
	 	þ
	 	Confidentiality applies (default)
	Taxes

	 	o
	 	Seller Pays Before and At Delivery Point
	 	Confidentiality
	 	o
	 	Confidentiality does not apply
	 
	 	 	 	 	 	 	 	 	 	 
	þ Special Provisions Number of sheets attached: 1	 	 	 	 	 	 
	o Addendum(s):_____________________	 	 	 	 	 	 

IN WITNESS WHEREOF, the parties hereto have executed this Base Contract in duplicate.

	 	 	 	 	 	 	 	 	 
	ODYSSEY ENERGY SERVICES, LLC	 	 	 	EAGLE ROCK FIELD SERVICES, L.P.
	 	 	 	 	 
	Party Name	 	 	 	Party Name
	 
	 	 	 	 	 	 	 	 
	By

	 	/s/ James L. Kincaid	 	 	 	By	 	/s/ William E. Puckett
	 	 	 	 	 
	Name:

	 	James
L. Kincaid	 	 	 	Name:
	 	William E. Puckett
	Title:

	 	CEO	 	 	 	Title:
	 	Senior VP Commercial Operations

      

 

			
	Copyright © 2002 North American Energy Standards Board, Inc.
	 	NAESB Standard 6.3.1
	All Rights Reserved
	 	April 19, 2002

 

General Terms and Conditions

Base Contract for Sale and Purchase of Natural Gas

SECTION 1. PURPOSE AND PROCEDURES

     1.1. These General Terms and Conditions are intended to facilitate purchase and sale
transactions of Gas on a Firm or Interruptible basis. “Buyer” refers to the party receiving Gas
and “Seller” refers to the party delivering Gas. The entire agreement between the parties shall be
the Contract as defined in Section 2.7.

The parties have selected either the “Oral Transaction Procedure” or the
“Written Transaction Procedure” as indicated on the Base Contract.
Oral Transaction Procedure:

     1.2. The parties will use the following Transaction Confirmation
procedure. Any Gas purchase and sale transaction may be effectuated in an EDI
transmission or telephone conversation with the offer and acceptance
constituting the agreement of the parties. The parties shall be legally bound
from the time they so agree to transaction terms and may each rely thereon.
Any such transaction shall be considered a “writing” and to have been “signed”.
Notwithstanding the foregoing sentence, the parties agree that Confirming
Party shall, and the other party may, confirm a telephonic transaction by
sending the other party a Transaction Confirmation by facsimile, EDI or
mutually agreeable electronic means within three Business Days of a transaction
covered by this Section 1.2 (Oral Transaction Procedure) provided that the
failure to send a Transaction Confirmation shall not invalidate the oral
agreement of the parties. Confirming Party adopts its confirming letterhead,
or the like, as its signature on any Transaction Confirmation as the
identification and authentication of Confirming Party. If the Transaction
Confirmation contains any provisions other than those relating to the
commercial terms of the transaction (i.e., price, quantity, performance
obligation, delivery point, period of delivery and/or transportation
conditions), which modify or supplement the Base Contract or General Terms and
Conditions of this Contract (e.g., arbitration or additional representations
and warranties), such provisions shall not be deemed to be accepted pursuant to
Section 1.3 but must be expressly agreed to by both parties; provided that the
foregoing shall not invalidate any transaction agreed to by the parties.

Written Transaction Procedure:

     1.2. The parties will use the following Transaction Confirmation procedure.
Should the parties come to an agreement regarding a Gas purchase and sale
transaction for a particular Delivery Period, the Confirming Party shall, and
the other party may, record that agreement on a Transaction Confirmation and
communicate such Transaction Confirmation by facsimile, EDI or mutually
agreeable electronic means, to the other party by the close of the Business Day
following the date of agreement. The parties acknowledge that their agreement
will not be binding until the exchange of nonconflicting Transaction
Confirmations or the passage of the Confirm Deadline without objection from the
receiving party, as provided in Section 1.3.

     1.3. If a sending party’s Transaction Confirmation is materially different from the
receiving party’s understanding of the agreement referred to in Section 1.2, such receiving party
shall notify the sending party via facsimile, EDI or mutually agreeable electronic means by the
Confirm Deadline, unless such receiving party has previously sent a Transaction Confirmation to the
sending party. The failure of the receiving party to so notify the sending party in writing by the
Confirm Deadline constitutes the receiving party’s agreement to the terms of the transaction
described in the sending party’s Transaction Confirmation. If there are any material differences
between timely sent Transaction Confirmations governing the same transaction, then neither
Transaction Confirmation shall be binding until or unless such differences are resolved including
the use of any evidence that clearly resolves the differences in the Transaction Confirmations. In
the event of a conflict among the terms of (i) a binding Transaction Confirmation pursuant to
Section 1.2, (ii) the oral agreement of the parties which may be evidenced by a recorded
conversation, where the parties have selected the Oral Transaction Procedure of the Base Contract,
(iii) the Base Contract, and (iv) these General Terms and Conditions, the terms of the documents
shall govern in the priority listed in this sentence.

     1.4. The parties agree that each party may electronically record all telephone
conversations with respect to this Contract between their respective employees, without any special
or further notice to the other party. Each party shall obtain any necessary consent of its agents
and employees to such recording. Where the parties have selected the Oral Transaction Procedure in
Section 1.2 of the Base Contract, the parties agree not to contest the validity or enforceability
of telephonic recordings entered into in accordance with the requirements of this Base Contract.
However, nothing herein shall be construed as a waiver of any objection to the admissibility of
such evidence.

SECTION 2. DEFINITIONS

     The terms set forth below shall have the meaning ascribed to them below. Other terms are also
defined elsewhere in the Contract and shall have the meanings ascribed to them herein.

     2.1. “Alternative Damages” shall mean such damages, expressed in dollars or dollars per
MMBtu, as the parties shall agree upon in the Transaction Confirmation, in the event either Seller
or Buyer fails to perform a Firm obligation to deliver Gas in the case of Seller or to receive Gas
in the case of Buyer.

     2.2. “Base Contract” shall mean a contract executed by the parties that incorporates these
General Terms and Conditions by reference; that specifies the agreed selections of provisions
contained herein; and that sets forth other information required herein and any Special Provisions
and addendum(s) as identified on page one.

     2.3. “British thermal unit” or “Btu” shall mean the International BTU, which is also
called the Btu (IT).

			
	 

Copyright @ 2002 North American Energy Standards Board, Inc.
	 	 

NAESB Standard 6.3.1
	All Rights Reserved
	 	April 19, 2002

Page 2 of 10

 

 

     2.4. “Business Day” shall mean any day except Saturday, Sunday or Federal Reserve Bank
holidays.

     2.5. “Confirm Deadline” shall mean 5:00 p.m. in the receiving party’s time zone on the
second Business Day following the Day a Transaction Confirmation is received or, if applicable, on
the Business Day agreed to by the parties in the Base Contract; provided, if the Transaction
Confirmation is time stamped after 5:00 p.m. in the receiving party’s time zone, it shall be deemed
received at the opening of the next Business Day.

     2.6. “Confirming Party” shall mean the party designated in the Base Contract to prepare
and forward Transaction Confirmations to the other party.

     2.7. “Contract” shall mean the legally-binding relationship established by (i) the Base
Contract, (ii) any and all binding Transaction Confirmations and (iii) where the parties have
selected the Oral Transaction Procedure in Section 1.2 of the Base Contract, any and all
transactions that the parties have entered into through an EDI transmission or by telephone, but
that have not been confirmed in a binding Transaction Confirmation.

     2.8. “Contract Price” shall mean the amount expressed in U.S. Dollars per MMBtu to be paid
by Buyer to Seller for the purchase of Gas as agreed to by the parties in a transaction.

     2.9. “Contract Quantity” shall mean the quantity of Gas to be delivered and taken as
agreed to by the parties in a transaction.

     2.10. “Cover Standard”, as referred to in Section 3.2, shall mean that if there is an
unexcused failure to take or deliver any quantity of Gas pursuant to this Contract, then the
performing party shall use commercially reasonable efforts to (i) if Buyer is the performing party,
obtain Gas, (or an alternate fuel if elected by Buyer and replacement Gas is not available), or
(ii) if Seller is the performing party, sell Gas, in either case, at a price reasonable for the
delivery or production area, as applicable, consistent with: the amount of notice provided by the
nonperforming party; the immediacy of the Buyer’s Gas consumption needs or Seller’s Gas sales
requirements, as applicable; the quantities involved; and the anticipated length of failure by the
nonperforming party.

     2.11. “Credit Support Obligation(s)” shall mean any obligation(s) to provide or establish
credit support for, or on behalf of, a party to this Contract such as an irrevocable standby letter
of credit, a margin agreement, a prepayment, a security interest in an asset, a performance bond,
guaranty, or other good and sufficient security of a continuing nature.

     2.12. “Day” shall mean a period of 24 consecutive hours, coextensive with a “day” as
defined by the Receiving Transporter in a particular transaction.

     2.13. “Delivery Period” shall be the period during which deliveries are to be made as
agreed to by the parties in a transaction.

     2.14. “Delivery Point(s)” shall mean such point(s) as are agreed to by the parties in a
transaction.

     2.15. “EDI” shall mean an electronic data interchange pursuant to an agreement entered
into by the parties, specifically relating to the communication of Transaction Confirmations under
this Contract.

     2.16. “EFP” shall mean the purchase, sale or exchange of natural Gas as the “physical”
side of an exchange for physical transaction involving gas futures contracts. EFP shall
incorporate the meaning and remedies of “Firm”, provided that a party’s excuse for nonperformance
of its obligations to deliver or receive Gas will be governed by the rules of the relevant futures
exchange regulated under the Commodity Exchange Act.

     2.17. “Firm” shall mean that either party may interrupt its performance without liability
only to the extent that such performance is prevented for reasons of Force Majeure; provided,
however, that during Force Majeure interruptions, the party invoking Force Majeure may be
responsible for any Imbalance Charges as set forth in Section 4.3 related to its interruption after
the nomination is made to the Transporter and until the change in deliveries and/or receipts is
confirmed by the Transporter.

     2.18. “Gas” shall mean any mixture of hydrocarbons and noncombustible gases in a gaseous
state consisting primarily of methane.

     2.19. “Imbalance Charges” shall mean any fees, penalties, costs or charges (in cash or in
kind) assessed by a Transporter for failure to satisfy the Transporter’s balance and/or nomination
requirements.

     2.20. “Interruptible” shall mean that either party may interrupt its performance at any
time for any reason, whether or not caused by an event of Force Majeure, with no liability, except
such interrupting party may be responsible for any Imbalance Charges as set forth in Section 4.3
related to its interruption after the nomination is made to the Transporter and until the change in
deliveries and/or receipts is confirmed by Transporter.

     2.21. “MMBtu” shall mean one million British thermal units, which is equivalent to one
dekatherm.

     2.22. “Month” shall mean the period beginning on the first Day of the calendar month and
ending immediately prior to the commencement of the first Day of the next calendar month.

     2.23. “Payment Date” shall mean a date, as indicated on the Base Contract, on or before
which payment is due Seller for Gas received by Buyer in the previous Month.

     2.24. “Receiving Transporter” shall mean the Transporter receiving Gas at a Delivery
Point, or absent such receiving Transporter, the Transporter delivering Gas at a Delivery Point.

     2.25. “Scheduled Gas” shall mean the quantity of Gas confirmed by Transporter(s) for
movement, transportation or management.

     2.26. “Spot Price “ as referred to in Section 3.2 shall mean the price listed in the
publication indicated on the Base Contract, under the listing applicable to the geographic location
closest in proximity to the Delivery Point(s) for the relevant Day; provided, if there is no single
price published for such location for such Day, but there is published a range of prices, then the
Spot Price shall be the average

			
	 

Copyright @ 2002 North American Energy Standards Board, Inc.
	 	 

NAESB Standard 6.3.1
	All Rights Reserved
	 	April 19, 2002

Page 3 of 10

 

 

of such high and low prices. If no price or range of prices is published for such Day, then the
Spot Price shall be the average of the following: (i) the price (determined as stated above) for
the first Day for which a price or range of prices is published that next precedes the relevant
Day; and (ii) the price (determined as stated above) for the first Day for which a price or range
of prices is published that next follows the relevant Day.

     2.27. “Transaction Confirmation” shall mean a document, similar to the form of Exhibit A,
setting forth the terms of a transaction formed pursuant to Section 1 for a particular Delivery
Period.

     2.28. “Termination Option” shall mean the option of either party to terminate a
transaction in the event that the other party fails to perform a Firm obligation to deliver Gas in
the case of Seller or to receive Gas in the case of Buyer for a designated number of days during a
period as specified on the applicable Transaction Confirmation.

     2.29. “Transporter(s)” shall mean all Gas gathering or pipeline companies, or local
distribution companies, acting in the capacity of a transporter, transporting Gas for Seller or
Buyer upstream or downstream, respectively, of the Delivery Point pursuant to a particular
transaction.

SECTION 3. PERFORMANCE OBLIGATION

     3.1. Seller agrees to sell and deliver, and Buyer agrees to receive and purchase, the
Contract Quantity for a particular transaction in accordance with the terms of the Contract. Sales
and purchases will be on a Firm or Interruptible basis, as agreed to by the parties in a
transaction.

The parties have selected either the “Cover Standard” or the “Spot Price Standard” as indicated on the Base Contract.
Cover Standard:

     3.2. The sole and exclusive remedy of the parties in the event of a breach of a Firm obligation to deliver
or receive Gas shall be recovery of the following: (i) in the event of a breach by Seller on any Day(s), payment by
Seller to Buyer in an amount equal to the positive difference, if any, between the purchase price paid by Buyer
utilizing the Cover Standard and the Contract Price, adjusted for commercially reasonable differences in
transportation costs to or from the Delivery Point(s), multiplied by the difference between the Contract Quantity
and the quantity actually delivered by Seller for such Day(s); or (ii) in the event of a breach by Buyer on any
Day(s), payment by Buyer to Seller in the amount equal to the positive difference, if any, between the Contract
Price and the price received by Seller utilizing the Cover Standard for the resale of such Gas, adjusted for
commercially reasonable differences in transportation costs to or from the Delivery Point(s), multiplied by the
difference between the Contract Quantity and the quantity actually taken by Buyer for such Day(s); or (iii) in the
event that Buyer has used commercially reasonable efforts to replace the Gas or Seller has used commercially
reasonable efforts to sell the Gas to a third party, and no such replacement or sale is available, then the sole and
exclusive remedy of the performing party shall be any unfavorable difference between the Contract Price and the Spot
Price, adjusted for such transportation to the applicable Delivery Point, multiplied by the difference between the
Contract Quantity and the quantity actually delivered by Seller and received by Buyer for such Day(s). Imbalance
Charges shall not be recovered under this Section 3.2, but Seller and/or Buyer shall be responsible for Imbalance
Charges, if any, as provided in Section 4.3. The amount of such unfavorable difference shall be payable five
Business Days after presentation of the performing party’s invoice, which shall set forth the basis upon which such
amount was calculated.

Spot Price Standard:

     3.2. The sole and exclusive remedy of the parties in the event of a breach of a Firm obligation to deliver or
receive Gas shall be recovery of the following: (i) in the event of a breach by Seller on any Day(s), payment by
Seller to Buyer in an amount equal to the difference between the Contract Quantity and the actual quantity delivered
by Seller and received by Buyer for such Day(s), multiplied by the positive difference, if any, obtained by
subtracting the Contract Price from the Spot Price; or (ii) in the event of a breach by Buyer on any Day(s), payment
by Buyer to Seller in an amount equal to the difference between the Contract Quantity and the actual quantity
delivered by Seller and received by Buyer for such Day(s), multiplied by the positive difference, if any, obtained
by subtracting the applicable Spot Price from the Contract Price. Imbalance Charges shall not be recovered under
this Section 3.2, but Seller and/or Buyer shall be responsible for Imbalance Charges, if any, as provided in Section
4.3. The amount of such unfavorable difference shall be payable five Business Days after presentation of the
performing party’s invoice, which shall set forth the basis upon which such amount was calculated.

     3.3. Notwithstanding Section 3.2, the parties may agree to Alternative Damages in a
Transaction Confirmation executed in writing by both parties.

     3.4. In addition to Sections 3.2 and 3.3, the parties may provide for a Termination Option
in a Transaction Confirmation executed in writing by both parties. The Transaction Confirmation
containing the Termination Option will designate the length of nonperformance triggering the
Termination Option and the procedures for exercise thereof, how damages for nonperformance will be
compensated, and how liquidation costs will be calculated.

SECTION 4. TRANSPORTATION, NOMINATIONS, AND IMBALANCES

     4.1. Seller shall have the sole responsibility for transporting the Gas to the Delivery
Point(s). Buyer shall have the sole responsibility for transporting the Gas from the Delivery
Point(s).

     4.2. The parties shall coordinate their nomination activities, giving sufficient time to
meet the deadlines of the affected Transporter(s). Each party shall give the other party timely
prior Notice, sufficient to meet the requirements of all Transporter(s) involved in the
transaction, of the quantities of Gas to be delivered and purchased each Day. Should either party
become aware that actual deliveries at the Delivery Point(s) are greater or lesser than the
Scheduled Gas, such party shall promptly notify the other party.

			
	 

Copyright @ 2002 North American Energy Standards Board, Inc.
	 	 

NAESB Standard 6.3.1
	All Rights Reserved
	 	April 19, 2002

Page 4 of 10

 

 

     4.3. The parties shall use commercially reasonable efforts to avoid imposition of any
Imbalance Charges. If Buyer or Seller receives an invoice from a Transporter that includes
Imbalance Charges, the parties shall determine the validity as well as the cause of such Imbalance
Charges. If the Imbalance Charges were incurred as a result of Buyer’s receipt of quantities of
Gas greater than or less than the Scheduled Gas, then Buyer shall pay for such Imbalance Charges or
reimburse Seller for such Imbalance Charges paid by Seller. If the Imbalance Charges were incurred
as a result of Seller’s delivery of quantities of Gas greater than or less than the Scheduled Gas,
then Seller shall pay for such Imbalance Charges or reimburse Buyer for such Imbalance Charges paid
by Buyer.

SECTION 5. QUALITY AND MEASUREMENT

     All Gas delivered by Seller shall meet the pressure, quality and heat content requirements of
the Receiving Transporter. The unit of quantity measurement for purposes of this Contract shall be
one MMBtu dry. Measurement of Gas quantities hereunder shall be in accordance with the established
procedures of the Receiving Transporter.

SECTION 6. TAXES

The parties have selected either “Buyer Pays At and After Delivery Point"
or “Seller Pays Before and At Delivery Point” as indicated on the Base
Contract.

Buyer Pays At and After Delivery Point:

     Seller shall pay or cause to be paid all taxes, fees, levies, penalties,
licenses or charges imposed by any government authority (“Taxes”) on or with
respect to the Gas prior to the Delivery Point(s). Buyer shall pay or cause to
be paid all Taxes on or with respect to the Gas at the Delivery Point(s) and
all Taxes after the Delivery Point(s). If a party is required to remit or pay
Taxes that are the other party’s responsibility hereunder, the party
responsible for such Taxes shall promptly reimburse the other party for such
Taxes. Any party entitled to an exemption from any such Taxes or charges shall
furnish the other party any necessary documentation thereof.

Seller Pays Before and At Delivery Point:

     Seller shall pay or cause to be paid all taxes, fees, levies, penalties,
licenses or charges imposed by any government authority (“Taxes”) on or with
respect to the Gas prior to the Delivery Point(s) and all Taxes at the Delivery
Point(s). Buyer shall pay or cause to be paid all Taxes on or with respect to
the Gas after the Delivery Point(s). If a party is required to remit or pay
Taxes that are the other party’s responsibility hereunder, the party
responsible for such Taxes shall promptly reimburse the other party for such
Taxes. Any party entitled to an exemption from any such Taxes or charges shall
furnish the other party any necessary documentation thereof.

SECTION 7. BILLING, PAYMENT, AND AUDIT

     7.1. Seller shall invoice Buyer for Gas delivered and received in the preceding Month and
for any other applicable charges, providing supporting documentation acceptable in industry
practice to support the amount charged. If the actual quantity delivered is not known by the
billing date, billing will be prepared based on the quantity of Scheduled Gas. The invoiced
quantity will then be adjusted to the actual quantity on the following Month’s billing or as soon
thereafter as actual delivery information is available.

     7.2. Buyer shall remit the amount due under Section 7.1 in the manner specified in the
Base Contract, in immediately available funds, on or before the later of the Payment Date or 10
Days after receipt of the invoice by Buyer; provided that if the Payment Date is not a Business
Day, payment is due on the next Business Day following that date. In the event any payments are
due Buyer hereunder, payment to Buyer shall be made in accordance with this Section 7.2.

     7.3. In the event payments become due pursuant to Sections 3.2 or 3.3, the performing
party may submit an invoice to the nonperforming party for an accelerated payment setting forth the
basis upon which the invoiced amount was calculated. Payment from the nonperforming party will be
due five Business Days after receipt of invoice.

     7.4. If the invoiced party, in good faith, disputes the amount of any such invoice or any
part thereof, such invoiced party will pay such amount as it concedes to be correct; provided,
however, if the invoiced party disputes the amount due, it must provide supporting documentation
acceptable in industry practice to support the amount paid or disputed. In the event the parties
are unable to resolve such dispute, either party may pursue any remedy available at law or in
equity to enforce its rights pursuant to this Section.

     7.5. If the invoiced party fails to remit the full amount payable when due, interest on
the unpaid portion shall accrue from the date due until the date of payment at a rate equal to the
lower of (i) the then-effective prime rate of interest published under “Money Rates” by The Wall
Street Journal, plus two percent per annum; or (ii) the maximum applicable lawful interest rate.

     7.6. A party shall have the right, at its own expense, upon reasonable Notice and at
reasonable times, to examine and audit and to obtain copies of the relevant portion of the books,
records, and telephone recordings of the other party only to the extent reasonably necessary to
verify the accuracy of any statement, charge, payment, or computation made under the Contract.
This right to examine, audit, and to obtain copies shall not be available with respect to
proprietary information not directly relevant to transactions under this Contract. All invoices
and billings shall be conclusively presumed final and accurate and all associated claims for under-
or overpayments shall be deemed waived unless such invoices or billings are objected to in writing,
with adequate explanation and/or documentation, within two years after the Month of Gas delivery.
All retroactive adjustments under Section 7 shall be paid in full by the party owing payment within
30 Days of Notice and substantiation of such inaccuracy.

     7.7. Unless the parties have elected on the Base Contract not to make this Section 7.7
applicable to this Contract, the parties shall net all undisputed amounts due and owing, and/or
past due, arising under the Contract such that the party owing the greater amount shall make a
single payment of the net amount to the other party in accordance with Section 7; provided that no
payment required to be made pursuant to the terms of any Credit Support Obligation or pursuant to
Section 7.3 shall be subject to netting under this Section. If the parties have executed a
separate netting agreement, the terms and conditions therein shall prevail to the extent
inconsistent herewith.

			
	 

Copyright @ 2002 North American Energy Standards Board, Inc.
	 	 

NAESB Standard 6.3.1
	All Rights Reserved
	 	April 19, 2002

Page 5 of 10

 

 

SECTION 8. TITLE, WARRANTY, AND INDEMNITY

     8.1. Unless otherwise specifically agreed, title to the Gas shall pass from Seller to
Buyer at the Delivery Point(s). Seller shall have responsibility for and assume any liability with
respect to the Gas prior to its delivery to Buyer at the specified Delivery Point(s). Buyer shall
have responsibility for and any liability with respect to said Gas after its delivery to Buyer at
the Delivery Point(s).

     8.2. Seller warrants that it will have the right to convey and will transfer good and
merchantable title to all Gas sold hereunder and delivered by it to Buyer, free and clear of all
liens, encumbrances, and claims. EXCEPT AS PROVIDED IN THIS SECTION 8.2 AND IN SECTION 14.8, ALL
OTHER WARRANTIES, EXPRESS OR IMPLIED, INCLUDING ANY WARRANTY OF MERCHANTABILITY OR OF FITNESS FOR
ANY PARTICULAR PURPOSE, ARE DISCLAIMED.

     8.3. Seller agrees to indemnify Buyer and save it harmless from all losses, liabilities or
claims including reasonable attorneys’ fees and costs of court (“Claims”), from any and all
persons, arising from or out of claims of title, personal injury or property damage from said Gas
or other charges thereon which attach before title passes to Buyer. Buyer agrees to indemnify
Seller and save it harmless from all Claims, from any and all persons, arising from or out of
claims regarding payment, personal injury or property damage from said Gas or other charges thereon
which attach after title passes to Buyer.

     8.4. Notwithstanding the other provisions of this Section 8, as between Seller and Buyer,
Seller will be liable for all Claims to the extent that such arise from the failure of Gas
delivered by Seller to meet the quality requirements of Section 5.

SECTION 9. NOTICES

     9.1. All Transaction Confirmations, invoices, payments and other communications made
pursuant to the Base Contract (“Notices”) shall be made to the addresses specified in writing by
the respective parties from time to time.

     9.2. All Notices required hereunder may be sent by facsimile or mutually acceptable
electronic means, a nationally recognized overnight courier service, first class mail or hand
delivered.

     9.3. Notice shall be given when received on a Business Day by the addressee. In the
absence of proof of the actual receipt date, the following presumptions will apply. Notices sent
by facsimile shall be deemed to have been received upon the sending party’s receipt of its
facsimile machine’s confirmation of successful transmission. If the day on which such facsimile is
received is not a Business Day or is after five p.m. on a Business Day, then such facsimile shall
be deemed to have been received on the next following Business Day. Notice by overnight mail or
courier shall be deemed to have been received on the next Business Day after it was sent or such
earlier time as is confirmed by the receiving party. Notice via first class mail shall be
considered delivered five Business Days after mailing.

SECTION 10. FINANCIAL RESPONSIBILITY

     10.1. If either party (“X”) has reasonable grounds for insecurity regarding the
performance of any obligation under this Contract (whether or not then due) by the other party
(“Y”) (including, without limitation, the occurrence of a material change in the creditworthiness
of Y), X may demand Adequate Assurance of Performance. “Adequate Assurance of Performance” shall
mean sufficient security in the form, amount and for the term reasonably acceptable to X,
including, but not limited to, a standby irrevocable letter of credit, a prepayment, a security
interest in an asset or a performance bond or guaranty (including the issuer of any such security).

     10.2. In the event (each an “Event of Default”) either party (the “Defaulting Party”) or
its guarantor shall: (i) make an assignment or any general arrangement for the benefit of
creditors; (ii) file a petition or otherwise commence, authorize, or acquiesce in the commencement
of a proceeding or case under any bankruptcy or similar law for the protection of creditors or have
such petition filed or proceeding commenced against it; (iii) otherwise become bankrupt or
insolvent (however evidenced); (iv) be unable to pay its debts as they fall due; (v) have a
receiver, provisional liquidator, conservator, custodian, trustee or other similar official
appointed with respect to it or substantially all of its assets; (vi) fail to perform any
obligation to the other party with respect to any Credit Support Obligations relating to the
Contract; (vii) fail to give Adequate Assurance of Performance under Section 10.1 within 48 hours
but at least one Business Day of a written request by the other party; or (viii) not have paid any
amount due the other party hereunder on or before the second Business Day following written Notice
that such payment is due; then the other party (the “Non-Defaulting Party”) shall have the right,
at its sole election, to immediately withhold and/or suspend deliveries or payments upon Notice
and/or to terminate and liquidate the transactions under the Contract, in the manner provided in
Section 10.3, in addition to any and all other remedies available hereunder.

     10.3. If an Event of Default has occurred and is continuing, the Non-Defaulting Party
shall have the right, by Notice to the Defaulting Party, to designate a Day, no earlier than the
Day such Notice is given and no later than 20 Days after such Notice is given, as an early
termination date (the “Early Termination Date”) for the liquidation and termination pursuant to
Section 10.3.1 of all transactions under the Contract, each a “Terminated Transaction”. On the
Early Termination Date, all transactions will terminate, other than those transactions, if any,
that may not be liquidated and terminated under applicable law or that are, in the reasonable
opinion of the Non-Defaulting Party, commercially impracticable to liquidate and terminate
(“Excluded Transactions”), which Excluded Transactions must be liquidated and terminated as soon
thereafter as is reasonably practicable, and upon termination shall be a Terminated Transaction and
be valued consistent with Section 10.3.1 below. With respect to each Excluded Transaction, its
actual termination date shall be the Early Termination Date for purposes of Section 10.3.1.

			
	 

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NAESB Standard 6.3.1
	All Rights Reserved
	 	April 19, 2002

Page 6 of 10

 

 

The parties have selected either “Early Termination Damages Apply” or “Early
Termination Damages Do Not Apply” as indicated on the Base Contract.

Early Termination Damages Apply:

     10.3.1. As of the Early Termination Date, the Non-Defaulting
Party shall determine, in good faith and in a commercially reasonable
manner, (i) the amount owed (whether or not then due) by each party with
respect to all Gas delivered and received between the parties under
Terminated Transactions and Excluded Transactions on and before the Early
Termination Date and all other applicable charges relating to such
deliveries and receipts (including without limitation any amounts owed
under Section 3.2), for which payment has not yet been made by the party
that owes such payment under this Contract and (ii) the Market Value, as
defined below, of each Terminated Transaction. The Non-Defaulting Party
shall (x) liquidate and accelerate each Terminated Transaction at its
Market Value, so that each amount equal to the difference between such
Market Value and the Contract Value, as defined below, of such Terminated
Transaction(s) shall be due to the Buyer under the Terminated
Transaction(s) if such Market Value exceeds the Contract Value and to the
Seller if the opposite is the case; and (y) where appropriate, discount
each amount then due under clause (x) above to present value in a
commercially reasonable manner as of the Early Termination Date (to take
account of the period between the date of liquidation and the date on
which such amount would have otherwise been due pursuant to the relevant
Terminated Transactions).

     For purposes of this Section 10.3.1, “Contract Value” means the amount of Gas
remaining to be delivered or purchased under a transaction multiplied by the
Contract Price, and “Market Value” means the amount of Gas remaining to be
delivered or purchased under a transaction multiplied by the market price for a
similar transaction at the Delivery Point determined by the Non-Defaulting
Party in a commercially reasonable manner. To ascertain the Market Value, the
Non-Defaulting Party may consider, among other valuations, any or all of the
settlement prices of NYMEX Gas futures contracts, quotations from leading
dealers in energy swap contracts or physical gas trading markets, similar sales
or purchases and any other bona fide third-party offers, all adjusted for the
length of the term and differences in transportation costs. A party shall not
be required to enter into a replacement transaction(s) in order to determine
the Market Value. Any extension(s) of the term of a transaction to which
parties are not bound as of the Early Termination Date (including but not
limited to “evergreen provisions”) shall not be considered in determining
Contract Values and Market Values. For the avoidance of doubt, any option
pursuant to which one party has the right to extend the term of a transaction
shall be considered in determining Contract Values and Market Values. The rate
of interest used in calculating net present value shall be determined by the
Non-Defaulting Party in a commercially reasonable manner.

Early Termination Damages Do Not Apply:

     10.3.1. As of the Early Termination Date, the Non-Defaulting Party shall
determine, in good faith and in a commercially reasonable manner, the
amount owed (whether or not then due) by each party with respect to all
Gas delivered and received between the parties under Terminated
Transactions and Excluded Transactions on and before the Early
Termination Date and all other applicable charges relating to such
deliveries and receipts (including without limitation any amounts owed
under Section 3.2), for which payment has not yet been made by the party
that owes such payment under this Contract.

The parties have selected either “Other Agreement Setoffs Apply” or “Other
Agreement Setoffs Do Not Apply” as indicated on the Base Contract.

Other Agreement Setoffs Apply:

     10.3.2. The Non-Defaulting Party shall net or aggregate, as
appropriate, any and all amounts owing between the parties under Section
10.3.1, so that all such amounts are netted or aggregated to a single
liquidated amount payable by one party to the other (the “Net Settlement
Amount”). At its sole option and without prior Notice to the Defaulting
Party, the Non-Defaulting Party may setoff (i) any Net Settlement Amount
owed to the Non-Defaulting Party against any margin or other collateral
held by it in connection with any Credit Support Obligation relating to
the Contract; or (ii) any Net Settlement Amount payable to the Defaulting
Party against any amount(s) payable by the Defaulting Party to the
Non-Defaulting Party under any other agreement or arrangement between the
parties.

Other Agreement Setoffs Do Not Apply:

     10.3.2. The Non-Defaulting Party shall net or aggregate, as appropriate,
any and all amounts owing between the parties under Section 10.3.1, so
that all such amounts are netted or aggregated to a single liquidated
amount payable by one party to the other (the “Net Settlement Amount”).
At its sole option and without prior Notice to the Defaulting Party, the
Non-Defaulting Party may setoff any Net Settlement Amount owed to the
Non-Defaulting Party against any margin or other collateral held by it in
connection with any Credit Support Obligation relating to the Contract.

     10.3.3. If any obligation that is to be included in any netting, aggregation or
setoff pursuant to Section 10.3.2 is unascertained, the Non-Defaulting Party may in good faith
estimate that obligation and net, aggregate or setoff, as applicable, in respect of the estimate,
subject to the Non-Defaulting Party accounting to the Defaulting Party when the obligation is
ascertained. Any amount not then due which is included in any netting, aggregation or setoff
pursuant to Section 10.3.2 shall be discounted to net present value in a commercially reasonable
manner determined by the Non-Defaulting Party.

     10.4. As soon as practicable after a liquidation, Notice shall be given by the
Non-Defaulting Party to the Defaulting Party of the Net Settlement Amount, and whether the Net
Settlement Amount is due to or due from the Non-Defaulting Party. The Notice shall include a
written statement explaining in reasonable detail the calculation of such amount, provided that
failure to give such Notice shall not affect the validity or enforceability of the liquidation or
give rise to any claim by the Defaulting Party against the Non-Defaulting Party. The Net
Settlement Amount shall be paid by the close of business on the second Business Day following such
Notice, which date shall not be earlier than the Early Termination Date. Interest on any unpaid
portion of the Net Settlement Amount shall accrue from the date due until the

			
	 

Copyright © 2002 North American Energy Standards Board, Inc.

All Rights Reserved
	 	 

NAESB Standard 6.3.1

April 19, 2002

Page 7 of 10

 

 

date of payment at a rate equal to the lower of (i) the then-effective prime rate of interest
published under “Money Rates” by The Wall Street Journal, plus two percent per annum; or (ii) the
maximum applicable lawful interest rate.

     10.5. The parties agree that the transactions hereunder constitute a “forward contract”
within the meaning of the United States Bankruptcy Code and that Buyer and Seller are each “forward
contract merchants” within the meaning of the United States Bankruptcy Code.

     10.6. The Non-Defaulting Party’s remedies under this Section 10 are the sole and exclusive
remedies of the Non-Defaulting Party with respect to the occurrence of any Early Termination Date.
Each party reserves to itself all other rights, setoffs, counterclaims and other defenses that it
is or may be entitled to arising from the Contract.

     10.7. With respect to this Section 10, if the parties have executed a separate netting
agreement with close-out netting provisions, the terms and conditions therein shall prevail to the
extent inconsistent herewith.

SECTION 11. FORCE MAJEURE

     11.1. Except with regard to a party’s obligation to make payment(s) due under Section 7,
Section 10.4, and Imbalance Charges under Section 4, neither party shall be liable to the other for
failure to perform a Firm obligation, to the extent such failure was caused by Force Majeure. The
term “Force Majeure” as employed herein means any cause not reasonably within the control of the
party claiming suspension, as further defined in Section 11.2.

     11.2. Force Majeure shall include, but not be limited to, the following: (i) physical
events such as acts of God, landslides, lightning, earthquakes, fires, storms or storm warnings,
such as hurricanes, which result in evacuation of the affected area, floods, washouts, explosions,
breakage or accident or necessity of repairs to machinery or equipment or lines of pipe; (ii)
weather related events affecting an entire geographic region, such as low temperatures which cause
freezing or failure of wells or lines of pipe; (iii) interruption and/or curtailment of Firm
transportation and/or storage by Transporters; (iv) acts of others such as strikes, lockouts or
other industrial disturbances, riots, sabotage, insurrections or wars; and (v) governmental actions
such as necessity for compliance with any court order, law, statute, ordinance, regulation, or
policy having the effect of law promulgated by a governmental authority having jurisdiction.
Seller and Buyer shall make reasonable efforts to avoid the adverse impacts of a Force Majeure and
to resolve the event or occurrence once it has occurred in order to resume performance.

     11.3. Neither party shall be entitled to the benefit of the provisions of Force Majeure to
the extent performance is affected by any or all of the following circumstances: (i) the
curtailment of interruptible or secondary Firm transportation unless primary, in-path, Firm
transportation is also curtailed; (ii) the party claiming excuse failed to remedy the condition and
to resume the performance of such covenants or obligations with reasonable dispatch; or (iii)
economic hardship, to include, without limitation, Seller’s ability to sell Gas at a higher or more
advantageous price than the Contract Price, Buyer’s ability to purchase Gas at a lower or more
advantageous price than the Contract Price, or a regulatory agency disallowing, in whole or in
part, the pass through of costs resulting from this Agreement; (iv) the loss of Buyer’s market(s)
or Buyer’s inability to use or resell Gas purchased hereunder, except, in either case, as provided
in Section 11.2; or (v) the loss or failure of Seller’s gas supply or depletion of reserves,
except, in either case, as provided in Section 11.2. The party claiming Force Majeure shall not be
excused from its responsibility for Imbalance Charges.

     11.4. Notwithstanding anything to the contrary herein, the parties agree that the
settlement of strikes, lockouts or other industrial disturbances shall be within the sole
discretion of the party experiencing such disturbance.

     11.5. The party whose performance is prevented by Force Majeure must provide Notice to the
other party. Initial Notice may be given orally; however, written Notice with reasonably full
particulars of the event or occurrence is required as soon as reasonably possible. Upon providing
written Notice of Force Majeure to the other party, the affected party will be relieved of its
obligation, from the onset of the Force Majeure event, to make or accept delivery of Gas, as
applicable, to the extent and for the duration of Force Majeure, and neither party shall be deemed
to have failed in such obligations to the other during such occurrence or event.

     11.6. Notwithstanding Sections 11.2 and 11.3, the parties may agree to alternative Force
Majeure provisions in a Transaction Confirmation executed in writing by both parties.

SECTION 12. TERM

     This Contract may be terminated on 30 Day’s written Notice, but shall remain in effect until
the expiration of the latest Delivery Period of any transaction(s). The rights of either party
pursuant to Section 7.6 and Section 10, the obligations to make payment hereunder, and the
obligation of either party to indemnify the other, pursuant hereto shall survive the termination of
the Base Contract or any transaction.

SECTION 13. LIMITATIONS

     FOR BREACH OF ANY PROVISION FOR WHICH AN EXPRESS REMEDY OR MEASURE OF DAMAGES IS PROVIDED, SUCH
EXPRESS REMEDY OR MEASURE OF DAMAGES SHALL BE THE SOLE AND EXCLUSIVE REMEDY. A PARTY’S LIABILITY
HEREUNDER SHALL BE LIMITED AS SET FORTH IN SUCH PROVISION, AND ALL OTHER REMEDIES OR DAMAGES AT LAW
OR IN EQUITY ARE WAIVED. IF NO REMEDY OR MEASURE OF DAMAGES IS EXPRESSLY PROVIDED HEREIN OR IN A
TRANSACTION, A PARTY’S LIABILITY SHALL BE LIMITED TO DIRECT ACTUAL DAMAGES ONLY. SUCH DIRECT
ACTUAL DAMAGES SHALL BE THE SOLE AND EXCLUSIVE REMEDY, AND ALL OTHER REMEDIES OR DAMAGES AT LAW OR
IN EQUITY ARE WAIVED. UNLESS EXPRESSLY HEREIN PROVIDED, NEITHER PARTY SHALL BE LIABLE FOR
CONSEQUENTIAL, INCIDENTAL, PUNITIVE, EXEMPLARY OR INDIRECT DAMAGES, LOST PROFITS OR OTHER BUSINESS
INTERRUPTION DAMAGES, BY STATUTE, IN TORT OR CONTRACT, UNDER ANY INDEMNITY PROVISION OR OTHERWISE.
IT IS THE INTENT OF THE PARTIES THAT THE LIMITATIONS HEREIN IMPOSED ON REMEDIES AND THE MEASURE OF
DAMAGES BE WITHOUT REGARD TO THE CAUSE OR CAUSES RELATED THERETO, INCLUDING THE NEGLIGENCE OF ANY
PARTY, WHETHER SUCH NEGLIGENCE BE SOLE, JOINT OR CONCURRENT, OR ACTIVE OR PASSIVE.

			
	 

Copyright © 2002 North American Energy Standards Board, Inc.

All Rights Reserved
	 	 

NAESB Standard 6.3.1

April 19, 2002

Page 8 of 10

 

 

TO THE EXTENT ANY DAMAGES REQUIRED TO BE PAID HEREUNDER ARE LIQUIDATED, THE PARTIES ACKNOWLEDGE
THAT THE DAMAGES ARE DIFFICULT OR IMPOSSIBLE TO DETERMINE, OR OTHERWISE OBTAINING AN ADEQUATE
REMEDY IS INCONVENIENT AND THE DAMAGES CALCULATED HEREUNDER CONSTITUTE A REASONABLE APPROXIMATION
OF THE HARM OR LOSS.

SECTION 14. MISCELLANEOUS

     14.1. This Contract shall be binding upon and inure to the benefit of the successors,
assigns, personal representatives, and heirs of the respective parties hereto, and the covenants,
conditions, rights and obligations of this Contract shall run for the full term of this Contract.
No assignment of this Contract, in whole or in part, will be made without the prior written consent
of the non-assigning party (and shall not relieve the assigning party from liability hereunder),
which consent will not be unreasonably withheld or delayed; provided, either party may (i)
transfer, sell, pledge, encumber, or assign this Contract or the accounts, revenues, or proceeds
hereof in connection with any financing or other financial arrangements, or (ii) transfer its
interest to any parent or affiliate by assignment, merger or otherwise without the prior approval
of the other party. Upon any such assignment, transfer and assumption, the transferor shall remain
principally liable for and shall not be relieved of or discharged from any obligations hereunder.

     14.2. If any provision in this Contract is determined to be invalid, void or unenforceable
by any court having jurisdiction, such determination shall not invalidate, void, or make
unenforceable any other provision, agreement or covenant of this Contract.

     14.3. No waiver of any breach of this Contract shall be held to be a waiver of any other
or subsequent breach.

     14.4. This Contract sets forth all understandings between the parties respecting each
transaction subject hereto, and any prior contracts, understandings and representations, whether
oral or written, relating to such transactions are merged into and superseded by this Contract and
any effective transaction(s). This Contract may be amended only by a writing executed by both
parties.

     14.5. The interpretation and performance of this Contract shall be governed by the laws of
the jurisdiction as indicated on the Base Contract, excluding, however, any conflict of laws rule
which would apply the law of another jurisdiction.

     14.6. This Contract and all provisions herein will be subject to all applicable and valid
statutes, rules, orders and regulations of any governmental authority having jurisdiction over the
parties, their facilities, or Gas supply, this Contract or transaction or any provisions thereof.

     14.7. There is no third party beneficiary to this Contract.

     14.8. Each party to this Contract represents and warrants that it has full and complete
authority to enter into and perform this Contract. Each person who executes this Contract on
behalf of either party represents and warrants that it has full and complete authority to do so and
that such party will be bound thereby.

     14.9. The headings and subheadings contained in this Contract are used solely for
convenience and do not constitute a part of this Contract between the parties and shall not be used
to construe or interpret the provisions of this Contract.

     14.10. Unless the parties have elected on the Base Contract not to make this Section 14.10
applicable to this Contract, neither party shall disclose directly or indirectly without the prior
written consent of the other party the terms of any transaction to a third party (other than the
employees, lenders, royalty owners, counsel, accountants and other agents of the party, or
prospective purchasers of all or substantially all of a party’s assets or of any rights under this
Contract, provided such persons shall have agreed to keep such terms confidential) except (i) in
order to comply with any applicable law, order, regulation, or exchange rule, (ii) to the extent
necessary for the enforcement of this Contract , (iii) to the extent necessary to implement any
transaction, or (iv) to the extent such information is delivered to such third party for the sole
purpose of calculating a published index. Each party shall notify the other party of any
proceeding of which it is aware which may result in disclosure of the terms of any transaction
(other than as permitted hereunder) and use reasonable efforts to prevent or limit the disclosure.
The existence of this Contract is not subject to this confidentiality obligation. Subject to
Section 13, the parties shall be entitled to all remedies available at law or in equity to enforce,
or seek relief in connection with this confidentiality obligation. The terms of any transaction
hereunder shall be kept confidential by the parties hereto for one year from the expiration of the
transaction.

     In the event that disclosure is required by a governmental body or applicable law, the party
subject to such requirement may disclose the material terms of this Contract to the extent so
required, but shall promptly notify the other party, prior to disclosure, and shall cooperate
(consistent with the disclosing party’s legal obligations) with the other party’s efforts to obtain
protective orders or similar restraints with respect to such disclosure at the expense of the other
party.

     14.11 The parties may agree to dispute resolution procedures in Special Provisions attached to the
Base Contract or in a Transaction Confirmation executed in writing by both parties.

DISCLAIMER: The purposes of this Contract are to facilitate trade, avoid misunderstandings and
make more definite the terms of contracts of purchase and sale of natural gas. Further, NAESB does
not mandate the use of this Contract by any party. NAESB DISCLAIMS AND EXCLUDES, AND ANY USER OF
THIS CONTRACT ACKNOWLEDGES AND AGREES TO NAESB’S DISCLAIMER OF, ANY AND ALL WARRANTIES, CONDITIONS
OR REPRESENTATIONS, EXPRESS OR IMPLIED, ORAL OR WRITTEN, WITH RESPECT TO THIS CONTRACT OR ANY PART
THEREOF, INCLUDING ANY AND ALL IMPLIED WARRANTIES OR CONDITIONS OF TITLE, NON-INFRINGEMENT,
MERCHANTABILITY, OR FITNESS OR SUITABILITY FOR ANY PARTICULAR PURPOSE (WHETHER OR NOT NAESB KNOWS,
HAS REASON TO KNOW, HAS BEEN ADVISED, OR IS OTHERWISE IN FACT AWARE OF ANY SUCH PURPOSE), WHETHER
ALLEGED TO ARISE BY LAW, BY REASON OF CUSTOM OR USAGE IN THE TRADE, OR BY COURSE OF DEALING. EACH
USER OF THIS CONTRACT ALSO AGREES THAT UNDER NO CIRCUMSTANCES WILL NAESB BE LIABLE FOR ANY DIRECT,
SPECIAL, INCIDENTAL, EXEMPLARY, PUNITIVE OR CONSEQUENTIAL DAMAGES ARISING OUT OF ANY USE OF THIS
CONTRACT.

			
	 

Copyright © 2002 North American Energy Standards Board, Inc.

All Rights Reserved
	 	 

NAESB Standard 6.3.1

April 19, 2002

Page 9 of 10

 

 

EXHIBIT A

TRANSACTION CONFIRMATION

FOR IMMEDIATE DELIVERY

 

	 	 	 
	

	 	Date:                     , ___

Transaction Confirmation #:                     

This Transaction Confirmation is subject to the Base Contract between Seller and Buyer dated                                         . The terms of this
Transaction Confirmation are binding unless disputed in writing within 2 Business Days of receipt unless otherwise specified in the Base
Contract.

	 	 	 
	SELLER:

	 	BUYER:
	 

	 	 
	 

	 	 
	 

	 	 
	 

	 	 
	 

	 	 
	 

	 	 

	 	 	 	 	 	 	 	 	 
	Attn:

	 	 	 	 
	 	Attn:	 	 
	 

	 	 
	 	 	 	 	 	 

	 	 	 	 	 	 	 	 	 
	Phone:

	 	 	 	 
	 	Phone:	 	 
	 

	 	 
	 	 	 	 	 	 

	 	 	 	 	 	 	 	 	 
	Fax:

	 	 	 	 
	 	Fax:	 	 
	 

	 	 
	 	 	 	 	 	 

	 	 	 	 	 	 	 	 	 
	Base Contract No.

	 	 	 	 
	 	Base Contract No.	 	 
	 

	 	 
	 	 	 	 	 	 

	 	 	 	 	 	 	 	 	 
	Transporter:

	 	 	 	 
	 	Transporter:	 	 
	 

	 	 
	 	 	 	 	 	 

	 	 	 	 	 	 	 	 	 
	Transporter Contract Number:

	 	 	 	 
	 	Transporter Contract Number:	 	 
	 

	 	 
	 	 	 	 	 	 

Contract Price: $                     /MMBtu or                                                                                                                                                                 

Delivery Period: Begin:                     ,                                                                                                          End:                     ,                     

Performance Obligation and Contract Quantity: (Select One)

	 	 	 	 	 
	Firm (Fixed Quantity):

	 	Firm (Variable Quantity):
	 	Interruptible:
	                     MMBtus/day

	 	                     MMBtus/day Minimum
	 	Up to                     MMBtus/day
	     EFP

	 	                     MMBtus/day Maximum	 	 
	 

	 	subject to Section 4.2. at election of	 	 
	 

	 	      Buyer or       Seller	 	 

Delivery Point(s):                                                                                 

(If a pooling point is used, list a specific geographic and pipeline location):

Special Conditions:

 

 

 

 

	 	 	 	 	 	 	 	 	 
	Seller:

	 	 	 	 
	 	Buyer:	 	 
	 

	 	 
	 	 	 	 	 	 

	 	 	 	 	 	 	 	 	 
	By:

	 	 	 	 
	 	By:	 	 
	 

	 	 
	 	 	 	 	 	 

	 	 	 	 	 	 	 	 	 
	Title:

	 	 	 	 
	 	Title:	 	 
	 

	 	 
	 	 	 	 	 	 

	 	 	 	 	 	 	 	 	 
	Date:

	 	 	 	 
	 	Date:	 	 
	 

	 	 
	 	 	 	 	 	 

			
	 

Copyright © 2002 North American Energy Standards Board, Inc.

All Rights Reserved
	 	 

NAESB Standard 6.3.1

April 19, 2002

Page 10 of 10

 

SPECIAL PROVISIONS

To the Base Contract for Sale and Purchase of Natural Gas

Dated July 1, 2006

Between Odyssey Energy Services, LLC and

Eagle Rock Field Services, L.P.

Add to the end of Section 1.4:

A true and complete copy of a recording made by either party will be made available to the
other party upon request, if it reasonably appears that such recording may be utilized to
resolve a dispute between the parties. Such recording may be submitted by either party as
evidence of the existence or terms of a transaction, subject to any statute, rule or judicial
precedent which limits the admissibility of parol or extrinsic evidence, and subject to any
arguments which either party may make regarding the interpretation or significance of such
recording.

			
	 

Copyright © 2002 North American Energy Standards Board, Inc.

All Rights Reserved
	 	 

NAESB Standard 6.3.1

April 19, 2002exv4w1

 

Exhibit 4.1

 

AMENDED AND RESTATED

TRUST AGREEMENT

among

SLM FUNDING LLC,

as Depositor

CHASE BANK USA, NATIONAL ASSOCIATION,

not in its individual capacity but solely,

as Trustee,

and

THE BANK OF NEW YORK

not in its individual capacity but solely as the Indenture Trustee,

acting as the Excess Distribution Certificate Paying Agent

Dated as of September 28, 2006

 

 

 

TABLE OF CONTENTS

	 	 	 	 	 	 	 
	 	 	 	 	Page
	 

	 	ARTICLE I	 	 	 	 
	 
	 	 	 	 	 	 
	 

	 	DEFINITIONS AND USAGE	 	 	 	 
	 
	 	 	 	 	 	 
	Section 1.01.

	 	Definitions and Usage
	 	 	1	 
	 
	 	 	 	 	 	 
	 

	 	ARTICLE II	 	 	 	 
	 
	 	 	 	 	 	 
	 

	 	ORGANIZATION	 	 	 	 
	 
	 	 	 	 	 	 
	Section 2.01.

	 	Creation of Trust; Name
	 	 	1	 
	Section 2.02.

	 	Office
	 	 	2	 
	Section 2.03.

	 	Purposes and Powers
	 	 	2	 
	Section 2.04.

	 	Appointment of Trustee
	 	 	2	 
	Section 2.05.

	 	Initial Capital Contribution of Trust Estate
	 	 	2	 
	Section 2.06.

	 	Declaration of Trust
	 	 	3	 
	Section 2.07.

	 	Liability of the Holders of Excess Distribution Certificate
	 	 	3	 
	Section 2.08.

	 	Title to Trust Property
	 	 	3	 
	Section 2.09.

	 	Representations, Warranties, and Covenants of the Depositor
	 	 	3	 
	 
	 	 	 	 	 	 
	 

	 	ARTICLE III	 	 	 	 
	 
	 	 	 	 	 	 
	 

	 	BENEFICIAL OWNERSHIP AND EXCESS DISTRIBUTION CERTIFICATE	 	 	 	 
	 
	 	 	 	 	 	 
	Section 3.01.

	 	Initial Beneficial Ownership
	 	 	4	 
	Section 3.02.

	 	Corporate Trust Office
	 	 	4	 
	Section 3.03.

	 	The Excess Distribution Certificate
	 	 	5	 
	 
	 	 	 	 	 	 
	 

	 	ARTICLE IV	 	 	 	 
	 
	 	 	 	 	 	 
	 

	 	ACTIONS BY TRUSTEE	 	 	 	 
	 
	 	 	 	 	 	 
	Section 4.01.

	 	Prior Notice to the Holder of the Excess Distribution
Certificate With Respect to Certain Matters
	 	 	10	 
	Section 4.02.

	 	Action with Respect to Sale of the Trust Student Loans
	 	 	10	 
	Section 4.03.

	 	Action with Respect to Bankruptcy
	 	 	10	 
	Section 4.04.

	 	Restrictions
	 	 	10	 

 

 

	 	 	 	 	 	 	 
	 	 	 	 	Page
	 

	 	ARTICLE V	 	 	 	 
	 
	 	 	 	 	 	 
	 

	 	APPLICATION OF TRUST FUNDS; CERTAIN DUTIES	 	 	 	 
	 
	 	 	 	 	 	 
	Section 5.01.

	 	Application of Trust Funds
	 	 	11	 
	Section 5.02.

	 	Method of Payment
	 	 	11	 
	Section 5.03.

	 	No Segregation of Moneys; No Interest
	 	 	11	 
	Section 5.04.

	 	Reports to the Holder of the Excess Distribution
Certificate, the Internal Revenue Service and Others
	 	 	11	 
	Section 5.05.

	 	Signature on Returns
	 	 	12	 
	 
	 	 	 	 	 	 
	 

	 	ARTICLE VI	 	 	 	 
	 
	 	 	 	 	 	 
	 

	 	AUTHORITY AND DUTIES OF TRUSTEE	 	 	 	 
	 
	 	 	 	 	 	 
	Section 6.01.

	 	General Authority
	 	 	12	 
	Section 6.02.

	 	General Duties
	 	 	12	 
	Section 6.03.

	 	Action Upon Instruction
	 	 	12	 
	Section 6.04.

	 	No Duties Except as Specified in this Agreement or in Instructions
	 	 	13	 
	Section 6.05.

	 	No Action Except under Specified Documents or Instructions
	 	 	14	 
	Section 6.06.

	 	Restrictions
	 	 	14	 
	 
	 	 	 	 	 	 
	 

	 	ARTICLE VII	 	 	 	 
	 
	 	 	 	 	 	 
	 

	 	CONCERNING THE TRUSTEE	 	 	 	 
	 
	 	 	 	 	 	 
	Section 7.01.

	 	Acceptance of Trusts and Duties
	 	 	14	 
	Section 7.02.

	 	Reserved
	 	 	15	 
	Section 7.03.

	 	Representations and Warranties
	 	 	15	 
	Section 7.04.

	 	Reliance; Advice of Counsel
	 	 	16	 
	Section 7.05.

	 	Not Acting in Individual Capacity
	 	 	16	 
	Section 7.06.

	 	Trustee Not Liable for Excess Distribution Certificate or Trust Student Loans
	 	 	16	 
	Section 7.07.

	 	Trustee May Own Notes
	 	 	17	 
	 
	 	 	 	 	 	 
	 

	 	ARTICLE VIII	 	 	 	 
	 
	 	 	 	 	 	 
	 

	 	COMPENSATION AND INDEMNITY OF TRUSTEE	 	 	 	 
	 
	 	 	 	 	 	 
	Section 8.01.

	 	Trustee’s Fees and Expenses
	 	 	17	 
	Section 8.02.

	 	Payments to the Trustee
	 	 	17	 
	Section 8.03.

	 	Indemnity
	 	 	17	 
	 
	 	 	 	 	 	 
	 

	 	ARTICLE IX	 	 	 	 
	 
	 	 	 	 	 	 
	 

	 	TERMINATION OF TRUST AGREEMENT	 	 	 	 
	 
	 	 	 	 	 	 
	Section 9.01.

	 	Termination of Trust Agreement
	 	 	17	 

ii

 

	 	 	 	 	 	 	 
	 	 	 	 	Page
	 

	 	ARTICLE X	 	 	 	 
	 
	 	 	 	 	 	 
	 

	 	SUCCESSOR TRUSTEES AND ADDITIONAL TRUSTEES	 	 	 	 
	 
	 	 	 	 	 	 
	Section 10.01.

	 	Eligibility Requirements for Trustee
	 	 	18	 
	Section 10.02.

	 	Resignation or Removal of Trustee
	 	 	18	 
	Section 10.03.

	 	Successor Trustee
	 	 	19	 
	Section 10.04.

	 	Merger or Consolidation of Trustee
	 	 	19	 
	Section 10.05.

	 	Appointment of Co-Trustee or Separate Trustee
	 	 	19	 
	 
	 	 	 	 	 	 
	 

	 	ARTICLE XI	 	 	 	 
	 
	 	 	 	 	 	 
	 

	 	MISCELLANEOUS	 	 	 	 
	 
	 	 	 	 	 	 
	Section 11.01.

	 	Supplements and Amendments
	 	 	21	 
	Section 11.02.

	 	No Legal Title to Trust Estate in
Holder of the Excess Distribution Certificate
	 	22

	Section 11.03.

	 	Limitations on Rights of Others
	 	 	22	 
	Section 11.04.

	 	Notices
	 	 	22	 
	Section 11.05.

	 	Severability
	 	 	22	 
	Section 11.06.

	 	Separate Counterparts
	 	 	22	 
	Section 11.07.

	 	Successors and Assigns
	 	 	22	 
	Section 11.08.

	 	No Petition
	 	 	23	 
	Section 11.09.

	 	No Recourse
	 	 	23	 
	Section 11.10.

	 	Headings
	 	 	23	 
	Section 11.11.

	 	Governing Law
	 	 	23	 
	 
	 	 	 	 	 	 
	 

	 	ARTICLE XII	 	 	 	 
	 
	 	 	 	 	 	 
	 

	 	COMPLIANCE WITH REGULATION AB	 	 	 	 
	 
	 	 	 	 	 	 
	Section 12.01

	 	Intent of the Parties; Reasonableness
	 	 	23	 
	 
	Exhibit A

	 	Form of Excess Distribution Certificate	 	 	 	 
	Exhibit B

	 	Form of Certificate of Trust	 	 	 	 
	Exhibit C

	 	Form of Transferor Letter	 	 	 	 
	Exhibit D-1

	 	Form of Transferee Letter (Non-Rule 144A)	 	 	 	 
	Exhibit D-2

	 	Form of Transferee Letter (Rule 144A)	 	 	 	 
	 
	 	 	 	 	 	 
	Appendix A-1 to Trust Agreement	 	 	 	 
	 
	 	 	 	 	 	 
	Annex 1

	 	Qualified Institutional Buyer Status under SEC Rule 144A
(Non-Registered Investment Companies)	 	 	 	 
	Annex 2

	 	Qualified Institutional Buyer Status under SEC Rule 144A
(Registered Investment Companies)	 	 	 	 

 iii

 

 

TRUST AGREEMENT

     This AMENDED AND RESTATED TRUST AGREEMENT, dated as of September 28, 2006 (the “Agreement”),
is among SLM FUNDING LLC, a Delaware limited liability company, as depositor (the “Depositor”),
CHASE BANK USA, NATIONAL ASSOCIATION (formerly known as Chase Manhattan Bank USA, National
Association), a national banking association, not in its individual capacity but solely as the
Trustee (the “Trustee”), and THE BANK OF NEW YORK, a New York banking corporation, not in its
individual capacity but solely as the Indenture Trustee, acting as the Excess Distribution
Certificate Paying Agent (the “Indenture Trustee”).

WITNESSETH:

     WHEREAS, the Depositor and the Trustee are parties to the trust agreement dated as of June 23,
2006 (the “Short-Form Trust Agreement”) pursuant to which a trust known as “SLM Student Loan Trust
2006-C” was established on June 23, 2006; and

     WHEREAS, the Depositor, the Indenture Trustee and the Trustee desire to amend and restate the
Short-Form Trust Agreement upon the terms and conditions set forth herein as follows.

     NOW, THEREFORE, the Depositor, the Trustee and the Indenture Trustee hereby agree as follows:

ARTICLE I

DEFINITIONS AND USAGE

     Section 1.01. Definitions and Usage. Except as otherwise specified herein or as the
context may otherwise require, capitalized terms used but not otherwise defined herein are defined
in Appendix A hereto, which also contains rules as to usage that shall be applicable herein.

ARTICLE II

ORGANIZATION

     Section 2.01. Creation of Trust; Name. There is hereby created a Trust which shall be
known as “SLM Private Credit Student Loan Trust 2006-C”, in which name the Trustee may conduct the
business of the Trust, make and execute contracts and other instruments on behalf of the Trust and
sue and be sued. The Trust shall constitute a statutory trust within the meaning of Section
3801(a) of the Delaware Statutory Trust Act for which the Trustee has filed or caused to be filed a
certificate of trust with the Secretary of State of the State of Delaware pursuant to Section
3810(a) of the Delaware Statutory Trust Act. The Trust is, under all circumstances, a grantor
trust.

 

 

     Section 2.02. Office. The office of the Trust shall be in care of the Trustee at its
Corporate Trust Office or at such other address as the Trustee may designate by written notice to
the Depositor.

     Section 2.03. Purposes and Powers. The purpose of the Trust is to engage in the
following activities:

     (i) to issue the Notes pursuant to the Indenture and the Excess Distribution
Certificate pursuant to this Agreement and to sell the Notes in one or more transactions;

     (ii) with the proceeds of the sale of the Notes, to fund the Reserve Account and the
Cash Capitalization Account pursuant to Section 2.08 of the Administration Agreement, to
make the Collection Account Initial Deposit and to purchase the Trust Student Loans pursuant
to the Depositor Sale Agreement;

     (iii) to Grant the Trust Estate to the Indenture Trustee pursuant to the Indenture, and
to hold, manage and distribute to the holder of the Excess Distribution Certificate pursuant
to the terms of this Agreement any portion of the Trust Estate released from the Lien of,
and remitted to the Trust pursuant to, the Indenture;

     (iv) to enter into and perform its obligations under the Basic Documents to which it is
to be a party, including, but not limited to, any payments that may be owed by the Trust
under the Swap Agreements;

     (v) to engage in those activities, including entering into agreements, that are
necessary, suitable or convenient to accomplish the foregoing or are incidental thereto or
connected therewith; and

     (vi) subject to compliance with the Basic Documents, to engage in such other activities
as may be required in connection with conservation of the Trust Estate and the making of
distributions to the Noteholders and the others specified in Sections 2.07 and 2.08 of the
Administration Agreement.

The Trust shall not engage in any activity other than in connection with the foregoing or other
than as required or authorized by the terms of this Agreement or the other Basic Documents. The
Trust is not intended to be a “business trust” for purposes of the Bankruptcy Code.

     Section 2.04. Appointment of Trustee. The Depositor hereby appoints the Trustee as
trustee of the Trust, effective as of the date hereof, to have all the rights, powers and duties
set forth herein.

     Section 2.05. Initial Capital Contribution of Trust Estate. The Depositor hereby
sells, assigns, transfers, conveys and sets over to the Trustee, as of the date hereof, the sum of
$100.00. The Trustee hereby acknowledges receipt in trust from the Depositor, as of the date
hereof, of the foregoing contribution, which shall constitute the Initial Trust Estate and shall be
deposited in the Collection Account. The Depositor shall pay the organizational expenses of the
Trust as they may arise or shall, upon the request of the Trustee, promptly reimburse the Trustee
for any such expenses paid by the Trustee.

2

 

     Section 2.06. Declaration of Trust. The Trustee hereby declares that it will hold the
Trust Estate in trust upon and subject to the conditions set forth herein for the use and benefit
of the holder of the Excess Distribution Certificate, subject to the obligations of the Trust under
the other Basic Documents. It is the intention of the parties hereto that the Trust constitute a
statutory trust under Delaware law and that this Agreement constitute the governing instrument of
such trust. Effective as of the date hereof, the Trustee shall have all rights, powers and duties
set forth herein and in the Delaware Statutory Trust Act with respect to accomplishing the purposes
of the Trust.

     Section 2.07. Liability of the Holders of Excess Distribution Certificate.

     (a) Notwithstanding the provisions of Section 3803 of the Delaware Statutory Trust Act, the
Depositor shall be liable directly to and shall indemnify the injured party for all losses, claims,
damages, liabilities and expenses of the Trust (including Expenses, to the extent that the assets
of the Trust that would remain if all of the Notes were paid in full would not be sufficient to pay
any such liabilities, or if such liabilities in fact are not paid out of the Trust Estate) to the
extent that the Depositor would be liable if the Trust were a partnership under the Delaware
Revised Uniform Limited Partnership Act in which the Depositor were a general partner;
provided, however, that the Depositor shall not be liable for any losses incurred
by a beneficial owner of a Note in its capacity as a holder of limited recourse debt or to any
holder of the Excess Distribution Certificate. In addition, any third party creditors of the Trust
(other than in connection with the obligations to Noteholders excepted above) shall be third party
beneficiaries of this paragraph.

     (b) No holder of the Excess Distribution Certificate (in such capacity) shall have any
personal liability for any liability or obligation of the Trust.

     Section 2.08. Title to Trust Property. Legal title to all of the Trust Estate shall
be vested at all times in the Trust as a separate legal entity except where applicable law in any
jurisdiction requires title to any part of the Trust Estate to be vested in a trustee or trustees,
in which case title shall be deemed to be vested in the Trustee, a co-trustee and/or a separate
trustee, as the case may be provided that legal title to the Trust Student Loans shall be vested at
all times in the Trustee on behalf of the Trust.

     Section 2.09. Representations, Warranties, and Covenants of the Depositor. The
Depositor hereby represents, warrants and covenants to the Trustee as follows:

     (a) The Depositor is duly organized and validly existing as a Delaware limited liability
company in good standing under the laws of the State of Delaware, with power and authority to own
its properties and to conduct its business as such properties are currently owned and such business
is presently conducted.

     (b) The Depositor has the power and authority to execute and deliver this Agreement and to
carry out its terms; the Depositor has the power and authority to sell and assign the property to
be sold and assigned to and deposited with the Trust or Trustee and the Depositor has duly
authorized such sale and assignment and deposit to the Trust or Trustee by all necessary

3

 

action; and the execution, delivery and performance of this Agreement has been duly authorized
by the Depositor by all necessary action.

     (c) This Agreement constitutes a legal, valid and binding obligation of the Depositor
enforceable in accordance with its terms, subject to applicable bankruptcy, insolvency,
reorganization and similar laws relating to creditors’ rights generally and subject to general
principles of equity.

     (d) The consummation of the transactions contemplated by this Agreement and the fulfillment of
the terms hereof do not conflict with, result in any breach of any of the terms and provisions of,
or constitute (with or without notice or lapse of time or both) a default under, the Certificate of
Formation or Operating Agreement of the Depositor, or any indenture, agreement or other instrument
to which the Depositor is a party or by which it is bound; nor result in the creation or imposition
of any Lien upon any of its properties pursuant to the terms of any such indenture, agreement or
other instrument (other than pursuant to the Basic Documents); nor violate any law or, to the
Depositor’s knowledge, any order, rule or regulation applicable to the Depositor of any court or of
any Federal or state regulatory body, administrative agency or other governmental instrumentality
having jurisdiction over the Depositor or its properties.

     (e) The Depositor agrees, for the benefit of the Noteholders and the Excess Distribution
Certificateholder, that it will comply with each of the requirements set forth in its Certificate
of Formation or Operating Agreement.

     (f) The Depositor is authorized and directed to execute on behalf of the Trust, and, after
execution, to deliver to the Administrator for filing with the Commission, all documents and forms
required to be filed in accordance with applicable law or the rules and regulations prescribed by
the Commission.

ARTICLE III

BENEFICIAL OWNERSHIP AND

EXCESS DISTRIBUTION CERTIFICATE

     Section 3.01. Initial Beneficial Ownership. Upon the formation of the Trust by the
contribution by the Depositor pursuant to Section 2.05 and until the issuance of the Excess
Distribution Certificate, the Depositor shall be the sole beneficial owner of the Trust.

     Section 3.02. Corporate Trust Office. The Trustee initially designates Christiana
Center/OPS4, 500 Stanton Christiana Road, Newark, Delaware 19713, as its principal Corporate Trust
Office, at which it shall act as Trustee of the Trust. The Excess Distribution Certificate
Registrar’s New York office and its authenticating agent’s office are located at. 101 Barclay
Street, New York, New York 10286, Attention: Corporate Trust Administration.

4

 

     Section 3.03. The Excess Distribution Certificate.

     (a) General. The Excess Distribution Certificate shall be issued in one or more
registered, definitive, physical certificates substantially in the form of Exhibit A hereto, in
minimum percentage interests of at least 10% and integral multiples of 10% in excess thereof. The
Excess Distribution Certificate shall receive payments as provided in Section 2.07(c)(xv) and
Section 2.08 of the Administration Agreement. The Excess Distribution Certificate shall be
executed on behalf of the Trust by manual or facsimile signature of an authorized officer of the
Trustee. An Excess Distribution Certificate bearing the manual or facsimile signatures of
individuals who were, at the time when such signatures were affixed, authorized to sign on behalf
of the Trust, shall be valid and binding obligations of the Trust, notwithstanding that such
individuals or any of them shall have ceased to be so authorized prior to the authentication and
delivery of such Excess Distribution Certificate or did not hold such offices at the date of
authentication and delivery of such Excess Distribution Certificate.

     (b) Authentication. Concurrently with the sale of the Trust Student Loans to the
Trust pursuant to the Depositor Sale Agreement, the Trustee shall cause the Excess Distribution
Certificate to be executed on behalf of the Trust, authenticated and delivered to or upon the
written order of the Depositor, signed by its chairman of the board, its president or any vice
president, without further action by the Depositor. For all purposes hereunder, the Depositor
shall be the Excess Distribution Certificateholder. No Excess Distribution Certificate shall
entitle its holder to any benefit under this Agreement, or shall be valid for any purpose, unless
there shall appear on such Excess Distribution Certificate a certificate of authentication
substantially in the form set forth in Exhibit A, executed by the Trustee or The Bank of New York,
as the Trustee’s authenticating agent, by manual signature; such authentication shall constitute
conclusive evidence that such Excess Distribution Certificate shall have been duly authenticated
and delivered hereunder. The Excess Distribution Certificate shall be dated the date of its
authentication. No further Excess Distribution Certificates shall be issued except pursuant to
clause (c) or (d) below.

     (c) Registration of Transfer and Exchange. The Excess Distribution Certificate
Registrar shall keep or cause to be kept, at the office or agency maintained pursuant to clause (f)
below, an Excess Distribution Certificate Register in which, subject to such reasonable regulations
as it may prescribe, the Trustee shall provide for the registration of the Excess Distribution
Certificate and of transfers and exchanges of the Excess Distribution Certificate as herein
provided. The Bank of New York shall be the initial Excess Distribution Certificate Registrar.

     Upon surrender for registration of transfer of the Excess Distribution Certificate at the
office or agency maintained pursuant to clause (f) below, the Trustee shall execute, authenticate
and deliver (or shall cause The Bank of New York as its authenticating agent to authenticate and
deliver), in the name of the designated transferee, a new Excess Distribution Certificate dated the
date of authentication by the Trustee or any authenticating agent. At the option of the holder of
the Excess Distribution Certificate, the Excess Distribution Certificate may be exchanged for
another Excess Distribution Certificate upon surrender of the Excess Distribution Certificate to be
exchanged at the office or agency maintained pursuant to clause (f) below.

5

 

     An Excess Distribution Certificate presented or surrendered for registration of transfer or
exchange shall be accompanied by a written instrument of transfer in form satisfactory to the
Excess Distribution Certificate Registrar duly executed by the holder thereof or his attorney duly
authorized in writing, with such signature (other than for transfers or exchanges to or among any
Affiliate of the Depositor) guaranteed by a member firm of the New York Stock Exchange or a
commercial bank or trust company. An Excess Distribution Certificate surrendered for registration
of transfer or exchange shall be cancelled and subsequently disposed of by the Excess Distribution
Certificate Registrar in accordance with its customary practice.

     No service charge shall be made for any registration of transfer or exchange of the Excess
Distribution Certificate, but the Excess Distribution Certificate Registrar may require payment of
a sum sufficient to cover any tax or governmental charge that may be imposed in connection with any
transfer or exchange of the Excess Distribution Certificate.

     The preceding provisions of this Section notwithstanding, the Trustee shall not be required to
make and the Excess Distribution Certificate Registrar need not register transfers or exchanges of
the Excess Distribution Certificate for a period of 15 days preceding any Distribution Date with
respect to the Excess Distribution Certificate.

     The Excess Distribution Certificate (including any beneficial interest therein) may not be
acquired by or for the account of (i) any Benefit Plan subject to Title I of ERISA and/or Section
4975 of the Code, if such acquisition, or the management or servicing of the Trust or its assets,
would cause a non-exempt prohibited transaction in violation of Section 406 of ERISA and/or Section
4975 of the Code, (ii) any Benefit Plan subject to a substantially similar federal, state, local or
foreign law, if such acquisition would cause a non-exempt violation of such substantially similar
law, (iii) any person who is not a United States person within the meaning of Section 7701(a)(30)
of the Code, or (iv) any “pass-thru entity” referred to in Section 1(h)(10)(D), (E) or (F) of the
Code, the income of which pass-thru entity is includible directly or indirectly through one or more
other such pass-thru entities by any person referred to in clause (iii) above. By accepting and
holding the Excess Distribution Certificate, the holder hereof shall be deemed to have represented
and warranted that it is not acquiring the Excess Distribution Certificate by or for the account of
any entity in violation of the above restrictions, and to have agreed that if such restrictions are
violated, the holder will promptly dispose of the Excess Distribution Certificate.

     (d) Mutilated, Destroyed, Lost or Stolen Excess Distribution Certificate. If (i) the
mutilated Excess Distribution Certificate shall be surrendered to the Excess Distribution
Certificate Registrar, or if the Excess Distribution Certificate Registrar shall receive evidence
to its satisfaction of the destruction, loss or theft of the Excess Distribution Certificate, and
(ii) there shall be delivered to the Excess Distribution Certificate Registrar and the Trustee such
security or indemnity as may be required by them to save each of them and the Trust harmless, then
in the absence of notice that such Excess Distribution Certificate shall have been acquired by a
bona fide purchaser, the Trustee on behalf of the Trust shall execute and the Trustee shall
authenticate and deliver (or shall cause the Bank of New York, as its authenticating agent to
authenticate and deliver), in exchange for or in lieu of any such mutilated, destroyed, lost or
stolen Excess Distribution Certificate, a new Excess Distribution Certificate of like tenor. In
connection with the issuance of any new Excess Distribution Certificate under this Section, the
Excess Distribution Certificate Registrar may require the payment of a sum sufficient to cover

6

 

any tax or other governmental charge that may be imposed in connection therewith. Any
duplicate Excess Distribution Certificate issued pursuant to this paragraph shall constitute
conclusive evidence of ownership in the Trust, as if originally issued, whether or not the lost,
stolen or destroyed Excess Distribution Certificate shall be found at any time.

     (e) Persons Deemed Owners. Prior to due presentation of the Excess Distribution
Certificate for registration of transfer, the Trustee and the Excess Distribution Certificate
Registrar and any agent of either of them may treat the Person in whose name the Excess
Distribution Certificate shall be registered in the Excess Distribution Certificate Register as the
owner of such Excess Distribution Certificate for the purpose of receiving distributions thereon
and for all other purposes whatsoever, and neither the Trustee, the Excess Distribution Certificate
Registrar nor any agent thereof shall be bound by any notice to the contrary.

     (f) Maintenance of Office or Agency. The Trustee shall maintain in the Borough of
Manhattan, The City of New York, an office or offices or agency or agencies where the Excess
Distribution Certificate may be surrendered for registration of transfer or exchange and where
notices and demands to or upon the Trustee in respect of the Excess Distribution Certificate may be
served.

     (g) Appointment of Excess Distribution Certificate Paying Agent. The Excess
Distribution Certificate Paying Agent shall make distributions to the Excess Distribution
Certificateholder from the amounts received from the Indenture Trustee pursuant to Section
2.07(c)(xv) and Section 2.08 of the Administration Agreement and shall report the amounts of such
distributions to the Indenture Trustee (if the Excess Distribution Certificate Paying Agent is not
the Indenture Trustee). Any Excess Distribution Certificate Paying Agent shall have the revocable
power to receive such funds from the Indenture Trustee for the purpose of making the distributions
referred to above. The Trustee may revoke such power and remove the Excess Distribution
Certificate Paying Agent if the Trustee determines in its sole discretion that the Excess
Distribution Certificate Paying Agent shall have failed to perform its obligations under this
Agreement in any material respect. The Excess Distribution Certificate Paying Agent shall
initially be the Indenture Trustee, and any co-paying agent chosen by the Trustee and consented to
by the Administrator (which consent shall not be unreasonably withheld). The Indenture Trustee
shall be permitted to resign as Excess Distribution Certificate Paying Agent upon 30 days’ written
notice to the Trustee. In the event that the Indenture Trustee shall no longer be the Excess
Distribution Certificate Paying Agent, the Trustee shall appoint a successor to act as Excess
Distribution Certificate Paying Agent (which shall be a bank or trust company). The Trustee shall
cause such successor Excess Distribution Certificate Paying Agent or any additional Excess
Distribution Certificate Paying Agent appointed by the Trustee to execute and deliver to the
Trustee an instrument in which such successor Excess Distribution Certificate Paying Agent or
additional Excess Distribution Certificate Paying Agent shall agree with the Trustee that as Excess
Distribution Certificate Paying Agent, such successor Excess Distribution Certificate Paying Agent
or additional Excess Distribution Certificate Paying Agent will hold all sums, if any, held by it
for payment to the holder of the Excess Distribution Certificate in trust for the benefit of such
holder until such sums shall be paid to such holder. The Excess Distribution Certificate Paying
Agent shall return all unclaimed funds to the Trustee and upon removal of an Excess Distribution
Certificate Paying Agent such Excess Distribution Certificate Paying Agent shall also return all
funds in its possession to the Trustee. The provisions of

7

 

Sections 7.01, 7.03 (except with respect to Section 7.03(a), the Indenture Trustee shall
represent and warrant that it is a New York banking corporation instead of a national banking
association), 7.04, 7.05, 8.01 and 8.03 shall apply to the Indenture Trustee also in its role as
Excess Distribution Certificate Paying Agent, for so long as the Indenture Trustee shall act as
Excess Distribution Certificate Paying Agent and, to the extent applicable, to any other paying
agent appointed hereunder. Any reference in this Agreement to the Excess Distribution Certificate
Paying Agent shall include any co-paying agent unless the context requires otherwise.

     (h) Restrictions on Transfer of the Excess Distribution Certificate. (i) The Excess
Distribution Certificate may be transferred to the Depositor or to any Affiliate of the Depositor,
without any requirement to provide any officer’s certificates or legal opinions that would
otherwise be required if such proposed transfer was being made to a Person who is not an Affiliate
of the Depositor.

     (ii) Except as provided above, the Excess Distribution Certificate shall not be sold,
pledged, transferred or assigned except as provided below:

     A. The Excess Distribution Certificate has not been registered or qualified under the
Securities Act of 1933, as amended (the “Securities Act”) or any state securities law. No
transfer, sale, pledge or other disposition of the Excess Distribution Certificate or any
interest therein shall be made unless such transfer is made pursuant to an effective
registration statement under the Securities Act and effective registration or qualification
under applicable state securities laws, or is made in a transaction which does not require
such registration or qualification. In the event that a transfer is to be made without
registration or qualification, the Trustee shall require, in order to assure compliance with
such laws, that the prospective transferor and transferee each certify to the Trustee, the
Excess Distribution Certificate Registrar, the Administrator, and, if it is not the proposed
transferor, the Depositor, in writing, the facts surrounding the transfer. Such
certifications shall be substantially in the forms of Exhibits C and D-1 or D-2 hereto,
respectively. In the event that such a transfer is to be made within two years from the
date of the initial issuance of the Excess Distribution Certificate pursuant hereto (other
than a transfer as to which the proposed transferee has provided a certificate in the form
of Exhibit D-2), the Trustee in its sole discretion, may require that there shall also be
delivered to the Trustee, the Excess Distribution Certificate Registrar, the Administrator,
and, if it is not the proposed transferor, the Depositor, at the expense of the transferor,
an opinion of counsel that such transfer may be made pursuant to an exemption from the
Securities Act and such state securities laws. Any such opinion of counsel shall not be an
expense of the Trustee, the Excess Distribution Certificate Registrar, the Administrator,
and, if it is not the proposed transferor, the Depositor. None of the Depositor, the
Administrator, the Excess Distribution Certificate Registrar, or the Trustee is obligated to
register or qualify the Excess Distribution Certificate under the Securities Act or any
other securities law or to take any action not otherwise required under this Agreement to
permit the transfer of the Excess Distribution Certificate without registration or
qualification. Any such holder of the Excess Distribution Certificate desiring to effect
such transfer shall, and does hereby agree to, indemnify the Trustee, the Excess
Distribution Certificate Registrar, the Administrator, and, if it is not the proposed

8

 

transferor, the Depositor, against any liability that may result if the transfer is not
so exempt or is made in accordance with such applicable federal and state laws.

     B. No transfer of the Excess Distribution Certificate will be registered by the Trustee
or the Excess Distribution Certificate Registrar unless the Trustee, the Excess Distribution
Certificate Registrar, the Administrator, and, if it is not the proposed transferor, the
Depositor receives a representation from the proposed transferee of the Excess Distribution
Certificate, substantially in the form of Exhibit D-1 or D-2, as the case may be, that such
transferee is not acquiring the Excess Distribution Certificate directly or indirectly for,
on behalf of or with the assets of a Plan. If any proposed transferee shall become a holder
of the Excess Distribution Certificate in violation of these provisions, then the last
preceding permitted transferee shall be restored, to the extent permitted by law, to all
rights as holder of the Excess Distribution Certificate, retroactive to the date of
registration of such transfer of the Excess Distribution Certificate. Neither the Trustee
nor the Excess Distribution Certificate Registrar shall have any liability to any person for
any registration or transfer of the Excess Distribution Certificate that is not permitted or
for making any payments due on the Excess Distribution Certificate to the holder or taking
any action with respect to such holder under this Agreement. Any proposed transferee who
becomes a holder of the Excess Distribution Certificate shall agree to indemnify the
Trustee, the Excess Distribution Certificate Registrar, a Swap Counterparty, the
Administrator, and, if it is not the proposed transferor, the Depositor, against any loss,
damage or penalty incurred as a result of the transfer of the Excess Distribution
Certificate to such proposed transferee in violation of such restrictions.

     C. The prospective transferee shall be aware that the Excess Distribution Certificate
shall bear legends referring to the restrictions contained in sub-clauses (A) and (B) above
and by its acceptance of the Excess Distribution Certificate agrees to abide by such
restrictions.

     D. The prospective transferee shall deliver an opinion of counsel addressed to the
Trustee, a Swap Counterparty, the Administrator, and, if it is not the proposed transferor,
the Depositor, to the effect that, (1) as a matter of federal income tax law, such
prospective transferee is permitted to accept the transfer of the Excess Distribution
Certificate, (2) such transfer or pledge would not jeopardize the tax treatment of the
Trust, (3) such transfer or pledge would not subject the Trust to any entity-level tax, (4)
such transfer or pledge would not jeopardize the status of the Notes as debt for all
purposes, and (5) such pledge or transfer would not cause the Trust to be treated, for
federal income tax purposes, as an association or a publicly traded partnership taxable as a
corporation.

     E. No pledge or transfer of the Excess Distribution Certificate shall be effective
unless such purchase or transfer is to a single beneficial owner who shall be the registered
holder of the Excess Distribution Certificate.

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ARTICLE IV

ACTIONS BY TRUSTEE

     Section 4.01. Prior Notice to the Holder of the Excess Distribution Certificate With
Respect to Certain Matters. With respect to the following matters, the Trustee shall not take
action unless at least 30 days before the taking of such action, the Trustee shall have notified
the holder of the Excess Distribution Certificate and each of the Rating Agencies in writing of the
proposed action and the holder shall not have notified the Trustee in writing prior to the 30th
calendar day after such notice is given that it has withheld consent or provided alternative
direction:

     (a) the initiation of any material claim or lawsuit by the Trust (except claims or lawsuits
brought in connection with the collection of the Trust Student Loans) and the compromise of any
material action, claim or lawsuit brought by or against the Trust (except with respect to the
aforementioned claims or lawsuits for collection of Trust Student Loans);

     (b) the amendment of the Indenture by a supplemental indenture in circumstances where the
consent of any class of Noteholders is required;

     (c) the amendment of the Indenture by a supplemental indenture in circumstances where the
consent of any class of Noteholder is not required and such amendment materially adversely affects
the interest of the holder of the Excess Distribution Certificate; or

     (d) the amendment of a Swap Agreement in circumstances where the consent of any class of
Noteholders is required or in circumstances where the consent of Noteholders is not required but
where such amendment materially adversely affects the interest of the holder of the Excess
Distribution Certificate.

     Section 4.02. Action with Respect to Sale of the Trust Student Loans. The Trustee
shall not have the power, except upon the written direction of the Depositor and except as
expressly provided in the Basic Documents, to sell the Trust Student Loans after the payment in
full of the Notes.

     Section 4.03. Action with Respect to Bankruptcy. The Trustee shall not have the power
to commence a voluntary proceeding in bankruptcy relating to the Trust without the prior approval
of the Depositor and the delivery to the Trustee by the Depositor of a certificate certifying that
the Depositor reasonably believes that the Trust is insolvent.

     Section 4.04. Restrictions. Neither the Depositor nor the holder of the Excess
Distribution Certificate shall direct the Trustee to take or refrain from taking any action if such
action or inaction would be contrary to any obligation of the Trust or the Trustee under this
Agreement or any of the other Basic Documents or would be contrary to Section 2.03 nor shall the
Trustee be permitted to follow any such direction, if given.

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ARTICLE V

APPLICATION OF TRUST FUNDS; CERTAIN DUTIES

     Section 5.01. Application of Trust Funds.

     (a) On each Distribution Date, the Trustee shall distribute to the holder of the Excess
Distribution Certificate any amounts payable in respect of the Excess Distribution Certificate in
accordance with the Administration Agreement.

     (b) In the event that any withholding tax is imposed on the Trust’s payment to the holder of
the Excess Distribution Certificate, such tax shall reduce the amount otherwise distributable on
the Excess Distribution Certificate.

     Section 5.02. Method of Payment. Distributions required to be made to the holder of
the Excess Distribution Certificate on any Distribution Date shall be made to the holder of record
on the preceding Record Date either by wire transfer, in immediately available funds, to the
account of such holder at a bank or other entity having appropriate facilities therefor, if such
holder shall have provided to the Excess Distribution Certificate Registrar appropriate written
instructions signed by two authorized officers, if any, at least five Business Days prior to such
Distribution Date, or, if not, by check mailed to such holder at the address of such holder
appearing in the Excess Distribution Certificate Register.

     Section 5.03. No Segregation of Moneys; No Interest. Subject to Section 5.01, moneys
received by the Trustee hereunder need not be segregated in any manner except to the extent
required by law or the Administration Agreement and may be deposited under such general conditions
as may be prescribed by law, and the Trustee shall not be liable for any interest thereon.

     Section 5.04. Reports to the Holder of the Excess Distribution Certificate, the Internal
Revenue Service and Others. The Trustee shall provide (or cause to be provided) any reports or
other information required to be provided to the holder of the Excess Distribution Certificate
pursuant to the Code, the regulations promulgated thereunder or other applicable law. In addition,
the Trustee shall provide (or cause to be provided) any information concerning the Excess
Distribution Certificate to the Internal Revenue Service or other taxing authority as required
under the Code, the regulations promulgated thereunder or other applicable law. The Trustee shall
be entitled to hire an independent accounting firm to perform the functions described in this
Section 5.04, the reasonable fees and expenses of which shall be paid by the Depositor.

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     Section 5.05. Signature on Returns. The Trustee shall sign on behalf of the Trust the
tax returns of the Trust, unless applicable law requires a holder of the Excess Distribution
Certificate to sign such documents, in which case such documents shall be signed by the Depositor
or the then holder of the Excess Distribution Certificate.

ARTICLE VI

AUTHORITY AND DUTIES OF TRUSTEE

     Section 6.01. General Authority. The Trustee is authorized and directed to execute
and deliver the Basic Documents to which the Trust is to be a party and each certificate or other
document attached as an exhibit to or contemplated by the Basic Documents to which the Trust is to
be a party, in each case, in such form as the Depositor shall approve as evidenced conclusively by
the Trustee’s execution thereof, and, on behalf of the Trust, to direct the Indenture Trustee to
authenticate and deliver Notes in the aggregate principal amount of $1,199,439,000. In addition to
the foregoing, the Trustee is also authorized and directed on behalf of the Trust to (i) acquire
and hold legal title to the Trust Student Loans from the Depositor and (ii) to take all actions
required of the Trust pursuant to the Basic Documents. The Trustee is further authorized from time
to time to take such action as the Administrator directs or instructs with respect to the Basic
Documents and is directed to take such action to the extent that the Administrator is expressly
required pursuant to the Basic Documents to cause the Trustee to act.

     Section 6.02. General Duties. It shall be the duty of the Trustee to discharge (or
cause to be discharged) all its responsibilities pursuant to the terms of this Agreement, the other
Basic Documents to which the Trust is a party and to administer the Trust in the interest of the
Noteholders and the holder of the Excess Distribution Certificate subject to and in accordance with
the provisions of this Agreement and the other Basic Documents. Without limiting the foregoing,
the Trustee shall on behalf of the Trust file and prove any claim or claims that may exist on
behalf of the Trust against the Depositor in connection with any claims paying procedure as part of
an insolvency or a receivership proceeding involving the Depositor. Notwithstanding the foregoing,
the Trustee shall be deemed to have discharged its duties and responsibilities hereunder and under
the other Basic Documents to the extent the Administrator has agreed in the Administration
Agreement to perform and act or to discharge any duty of the Trustee hereunder or under any other
Basic Document, and the Trustee shall not be held liable for the default or failure of the
Administrator to carry out its obligations under the Administration Agreement. Except as expressly
provided in the Basic Documents, the Trustee shall have no obligation to administer, service or
collect the Trust Student Loans or to maintain, monitor or otherwise supervise the administration,
servicing or collection of the Trust Student Loans.

     Section 6.03. Action Upon Instruction.

     (a) Reserved.

     (b) The Trustee shall not be required to take any action hereunder or under any other Basic
Document if the Trustee shall have reasonably determined, or shall have been advised by

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counsel, that such action is likely to result in liability on the part of the Trustee or is
contrary to the terms hereof, any other Basic Document or is otherwise contrary to law.

     (c) Whenever the Trustee is unable to determine the appropriate course of action between
alternative courses and actions permitted or required by the terms of this Agreement or under any
other Basic Document, the Trustee shall promptly give notice (in such form as shall be appropriate
under the circumstances) to the Depositor requiring instruction as to the course of action to be
adopted, and to the extent the Trustee acts in good faith in accordance with any written
instruction of the Depositor received, the Trustee shall not be liable on account of such action to
any Person. If the Trustee shall not have received appropriate instruction within 10 days of such
notice (or within such shorter period of time as reasonably may be specified in such notice or may
be necessary under the circumstances) it may, but shall be under no duty to, take or refrain from
taking such action, not inconsistent with this Agreement, the other Basic Documents, as it shall
deem to be in the best interests of the Depositor, and shall have no liability to any Person for
such action or inaction.

     (d) In the event that the Trustee is unsure as to the application of any provision of this
Agreement, any other Basic Document or any such provision is ambiguous as to its application, or
is, or appears to be, in conflict with any other applicable provision, or in the event that this
Agreement permits any determination by the Trustee or is silent or is incomplete as to the course
of action that the Trustee is required to take with respect to a particular set of facts, the
Trustee may give notice (in such form as shall be appropriate under the circumstances) to the
Depositor requesting instruction and, to the extent that the Trustee acts or refrains from acting
in good faith in accordance with any such instruction received, the Trustee shall not be liable, on
account of such action or inaction, to any Person. If the Trustee shall not have received
appropriate instruction within 10 days of such notice (or within such shorter period of time as
reasonably may be specified in such notice or may be necessary under the circumstances) it may, but
shall be under no duty to, take or refrain from taking such action, not inconsistent with this
Agreement or the other Basic Documents, as it shall deem to be in the best interest of the holder
of the Excess Distribution Certificate, and shall have no liability to any Person for such action
or inaction.

     Section 6.04. No Duties Except as Specified in this Agreement or in Instructions. The
Trustee shall not have any duty or obligation to manage, make any payment with respect to,
register, record, sell, service, dispose of or otherwise deal with the Trust Estate, or to
otherwise take or refrain from taking any action under, or in connection with, any document
contemplated hereby to which the Trustee is a party, except as expressly provided by the terms of
this Agreement or in any document or written instruction received by the Trustee pursuant to
Section 6.03; and no implied duties or obligations shall be read into this Agreement or any other
Basic Document against the Trustee. The Trustee shall have no responsibility for filing any
financing or continuation statement in any public office at any time or to otherwise perfect or
maintain the perfection of any security interest or lien granted to it hereunder or to prepare or
file any Commission filing for the Trust or to record this Agreement or any other Basic Document.
The Trustee nevertheless agrees that it will, at its own cost and expense, promptly take all action
as may be necessary to discharge any Liens on any part of the Trust Estate that result from actions
by, or claims against, Chase Bank USA, National Association in its individual capacity or as the
Trustee that are not related to the ownership or the administration of the Trust Estate.

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     Section 6.05. No Action Except under Specified Documents or Instructions. The Trustee
shall not otherwise deal with any part of the Trust Estate except (i) in accordance with the powers
granted to and the authority conferred upon the Trustee pursuant to this Agreement, (ii) in
accordance with the other Basic Documents to which it is a party and (iii) in accordance with any
document or instruction delivered to the Trustee pursuant to Section 6.03.

     Section 6.06. Restrictions. The Trustee shall not take any action (a) that is
inconsistent with the purposes of the Trust set forth in Section 2.03 or (b) that, to the actual
knowledge of the Trustee, would result in the Trust’s becoming taxable as a corporation for Federal
income tax purposes. Neither the Depositor nor the holder of the Excess Distribution Certificate
shall direct the Trustee to take action that would violate the provisions of this Section.

ARTICLE VII

CONCERNING THE TRUSTEE

     Section 7.01. Acceptance of Trusts and Duties. The Trustee accepts the trusts hereby
created and agrees to perform its duties hereunder with respect to such trusts but only upon the
terms of this Agreement. The Trustee also agrees to disburse all moneys actually received by it
constituting part of the Trust Estate upon the terms of this Agreement and the other Basic
Documents. The Trustee shall not be answerable or accountable hereunder or under any other Basic
Document under any circumstances, except (i) for its own willful misconduct or negligence or (ii)
in the case of the inaccuracy of any representation or warranty contained in Section 7.03 expressly
made by the Trustee. In particular, but not by way of limitation (and subject to the exceptions
set forth in the preceding sentence):

     (a) the Trustee shall not be liable for any error of judgment made by a responsible officer of
the Trustee;

     (b) the Trustee shall not be liable with respect to any action taken or omitted to be taken by
it in accordance with the direction or instructions of the Administrator, the Depositor or the
holder of the Excess Distribution Certificate;

     (c) no provision of this Agreement or any other Basic Document shall require the Trustee to
expend or risk funds or otherwise incur any financial liability in the performance of any of its
rights or powers hereunder or under any other Basic Document, if the Trustee shall have reasonable
grounds for believing that repayment of such funds or adequate indemnity against such risk or
liability is not reasonably assured or provided to it;

     (d) under no circumstances shall the Trustee be liable for indebtedness evidenced by or
arising under any of the Basic Documents, including the principal of and interest on the Notes;

     (e) the Trustee shall not be responsible for or in respect of the validity or sufficiency of
this Agreement or for the due execution hereof by the Depositor or for the form, character,
genuineness, sufficiency, value or validity of any of the Trust Estate or for or in respect of the
validity or sufficiency of the Basic Documents, other than the certificate of authentication on the
Excess Distribution Certificate, and the Trustee shall in no event assume or incur any liability,

14

 

duty, or obligation to any Noteholder or the holder of the Excess Distribution Certificate,
other than as expressly provided for herein and in the other Basic Documents;

     (f) the Trustee shall not be liable for the action or inaction, default or misconduct of the
Administrator, the Depositor, the Indenture Trustee, the Servicer or a Swap Counterparty under any
of the other Basic Documents or otherwise and the Trustee shall have no obligation or liability to
perform the obligations of the Trust under this Agreement or the other Basic Documents that are
required to be performed by the Administrator under the Administration Agreement, the Indenture
Trustee under the Indenture, the Servicer under the Servicing Agreement or a Swap Counterparty
under its related Swap Agreements; and

     (g) the Trustee shall be under no obligation to exercise any of the rights or powers vested in
it by this Agreement, or to institute, conduct or defend any litigation under this Agreement or
otherwise or in relation to this Agreement, any other Basic Document, at the request, order or
direction of the Depositor or holder of the Excess Distribution Certificate, unless the Depositor
or such holder has offered to the Trustee security or indemnity satisfactory to it against the
costs, expenses and liabilities that may be incurred by the Trustee therein or thereby. The right
of the Trustee to perform any discretionary act enumerated in this Agreement or in any other Basic
Document shall not be construed as a duty, and the Trustee shall not be answerable for other than
its negligence or willful misconduct in the performance of any such act.

     Section 7.02. Reserved.

     Section 7.03. Representations and Warranties. The Trustee hereby represents and
warrants to the Depositor, for the benefit of the Noteholders and the holder of the Excess
Distribution Certificate, that:

     (a) It is a national banking association duly organized and validly existing in good standing
under the laws of the United States and has its principal office located within the State of
Delaware. It has all requisite banking power and authority to execute, deliver and perform its
obligations under this Agreement.

     (b) It has taken all action necessary to authorize the execution and delivery by it of this
Agreement, and this Agreement will be executed and delivered by one of its officers who is duly
authorized to execute and deliver this Agreement on its behalf.

     (c) Neither the execution nor the delivery by it of this Agreement, nor the consummation by it
of the transactions contemplated hereby nor compliance by it with any of the terms or provisions
hereof will contravene any Federal or Delaware state law, governmental rule or regulation governing
the banking or trust powers of the Trustee or any judgment or order binding on it, or constitute
any default under its charter documents or by-laws or any indenture, mortgage, contract, agreement
or instrument to which it is a party or by which any of its properties may be bound.

15

 

     Section 7.04. Reliance; Advice of Counsel.

     (a) The Trustee shall incur no liability to anyone in acting upon any signature, instrument,
direction, notice, resolution, request, consent, order, certificate, report, opinion, bond or other
document or paper believed by it to be genuine and believed by it to be signed by the proper party
or parties. The Trustee may accept a certified copy of a resolution of the board of directors or
other governing body of any corporate party as conclusive evidence that such resolution has been
duly adopted by such body and that the same is in full force and effect. As to any fact or matter
the method of the determination of which is not specifically prescribed herein, the Trustee may for
all purposes hereof rely on a certificate, signed by the president or any vice president or by the
treasurer or other authorized officers of the relevant party, as to such fact or matter and such
certificate shall constitute full protection to the Trustee for any action taken or omitted to be
taken by it in good faith in reliance thereon.

     (b) In the exercise or administration of the trusts hereunder and in the performance of its
duties and obligations under this Agreement or the other Basic Documents, the Trustee (i) may act
directly or through its agents or attorneys pursuant to agreements entered into with any of them
and the Trustee shall not be liable for the conduct or misconduct of such agents or attorneys if
such agents or attorneys shall have been selected by the Trustee with reasonable care, and (ii) may
consult with counsel and accountants to be selected with reasonable care and employed by it. The
Trustee shall not be liable for anything done, suffered or omitted in good faith by it in
accordance with the written opinion or advice of any such counsel or accountants and not contrary
to this Agreement or any other Basic Document.

     Section 7.05. Not Acting in Individual Capacity. Except as provided in this Article
VII, in accepting the trusts hereby created Chase Bank USA, National Association acts solely as
Trustee hereunder and not in its individual capacity and all Persons having any claim against the
Trustee by reason of the transactions contemplated by this Agreement or any other Basic Document
shall look only to the Trust Estate for payment or satisfaction thereof.

     Section 7.06. Trustee Not Liable for Excess Distribution Certificate or Trust Student
Loans. The recitals contained herein and in the Excess Distribution Certificate (other than
the signature of and authentication by the Trustee on the Excess Distribution Certificate) shall be
taken as the statements of the Depositor and the Trustee assumes no responsibility for the
correctness thereof. The Trustee makes no representations as to the validity or sufficiency of
this Agreement, the Excess Distribution Certificate, or any other Basic Document (other than the
signature of and authentication by the Trustee on the Excess Distribution Certificate), or the
Notes, or of any Trust Student Loan or related documents. The Trustee shall at no time have any
responsibility for or with respect to the legality, validity and enforceability of any Trust
Student Loan, or for or with respect to the sufficiency of the Trust Estate or its ability to
generate the payments to be distributed to the holders of the Excess Distribution Certificates
under this Agreement or the Noteholders under the Indenture, including the existence and contents
of any computer or other record of any Trust Student Loan; the validity of the assignment of any
Trust Student Loan to the Trustee on behalf of the Trust; the completeness of any Trust Student
Loan; the performance or enforcement (except as expressly set forth in any Basic Document) of any
Trust Student Loan; the compliance by the Depositor or the Servicer with any warranty or
representation made under any Basic Document or in any related document or the accuracy of

16

 

any such warranty or representation or any action or inaction of the Administrator, the
Indenture Trustee or the Servicer or any subservicer taken in the name of the Trustee.

     Section 7.07. Trustee May Own Notes. The Trustee in its individual or any other
capacity may become the owner or pledgee of Notes and may deal with the Depositor, the
Administrator, the Indenture Trustee, the Servicer or a Swap Counterparty in banking transactions
with the same rights as if it were owner of the Notes and not acting as Trustee.

ARTICLE VIII

COMPENSATION AND INDEMNITY OF TRUSTEE

     Section 8.01. Trustee’s Fees and Expenses. The Trustee shall receive as compensation
for its services hereunder such fees as have been separately agreed upon before the date hereof
between the Depositor and the Trustee, and the Trustee shall be entitled to be reimbursed by the
Depositor, to the extent provided in such separate agreement, for its other reasonable expenses
(including the reasonable fees and expenses of counsel and independent accountants) hereunder.

     Section 8.02. Payments to the Trustee. Any amounts paid to the Trustee pursuant to
Section 8.01 hereof or pursuant to Section 9.01 of the Depositor Sale Agreement, Section 4.02 of
the Administration Agreement or Section 4.02 of the Servicing Agreement shall be deemed not to be a
part of the Trust Estate immediately after such payment.

     Section 8.03. Indemnity. The Depositor shall cause the Administrator to indemnify the
Trustee in its individual capacity and any of its officer, directors, employees and agents as and
to the extent provided for in Section 4.02 of the Administration Agreement.

ARTICLE IX

TERMINATION OF TRUST AGREEMENT

     Section 9.01. Termination of Trust Agreement.

     (a) This Agreement (other than Article VIII) and the Trust shall terminate and be of no
further force or effect upon the final distribution by the Trustee of all moneys or other property
or proceeds of the Trust Estate in accordance with the terms of the Indenture, the Administration
Agreement and Article V hereof and (2) the filing of the certificate of cancellation by the Trustee
pursuant to Section 9.01(b) below of this Agreement. The bankruptcy, liquidation, dissolution,
death or incapacity of any holder of an Excess Distribution Certificate, shall not (x) operate to
terminate this Agreement or the Trust, nor (y) entitle such holder’s legal representatives or heirs
to claim an accounting or to take any action or proceeding in any court for a partition or winding
up of all or any part of the Trust or Trust Estate nor (z) otherwise affect the rights, obligations
and liabilities of the parties hereto.

     (b) Except as provided in Section 9.01(a), none of the Depositor, any Noteholder or any holder
of an Excess Distribution Certificate shall be entitled to revoke or terminate the Trust.

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     Upon final distribution of any funds remaining in the Trust, the Trustee shall file a
certificate of cancellation of the Trust’s certificate of trust pursuant to Section 3810(c) of the
Delaware Statutory Trust Act.

ARTICLE X

SUCCESSOR TRUSTEES AND

ADDITIONAL TRUSTEES

     Section 10.01. Eligibility Requirements for Trustee. The Trustee shall at all times
(i) be an entity having its principal place of business in the State of Delaware and otherwise
complying with Section 3807 of the Delaware Statutory Trust Act, (ii) be authorized to exercise
statutory trust powers, (iii) have a combined capital and surplus of at least $50,000,000 and
subject to supervision or examination by Federal or state authorities and (iv) have (or have a
parent which has) a rating in respect of its long-term senior unsecured debt of at least BBB- (or
the equivalent) by each of the Rating Agencies (or which, if the long-term senior unsecured debt of
such entity is not rated by any Rating Agency, shall have provided to the Indenture Trustee written
confirmation from such Rating Agency that the appointment of such entity to serve as Trustee will
not result in and of itself in a reduction or withdrawal of the then current rating of any of the
Notes). If the Trustee shall publish reports of condition at least annually, pursuant to law or to
the requirements of the aforesaid supervising or examining authority, then for the purpose of this
Section, the combined capital and surplus of the Trustee shall be deemed to be its combined capital
and surplus as set forth in its most recent report of condition so published. In case at any time
the Trustee shall cease to be eligible in accordance with the provisions of this Section, the
Trustee shall resign immediately in the manner and with the effect specified in Section 10.02.

     Section 10.02. Resignation or Removal of Trustee. The Trustee may at any time resign
and be discharged from the trusts hereby created by giving written notice thereof to the
Administrator. Upon receiving such notice of resignation, the Administrator shall promptly appoint
a successor Trustee meeting the eligibility requirements of Section 10.01 by written instrument, in
duplicate, one copy of which instrument shall be delivered to the resigning Trustee and one copy to
the successor Trustee. If no successor Trustee shall have been so appointed and have accepted
appointment within 30 days after the giving of such notice of resignation, the resigning Trustee
may petition any court of competent jurisdiction for the appointment of a successor Trustee;
provided, however, that such right to appoint or to petition for the appointment of
any such successor shall in no event relieve the resigning Trustee from any obligations otherwise
imposed on it under the Basic Documents until such successor has in fact assumed such appointment.

     If at any time the Trustee shall cease to be or shall be likely to cease to be eligible in
accordance with the provisions of Section 10.01 and shall fail to resign after written request
therefor by the Administrator, or if at any time an Insolvency Event with respect to the Trustee
shall have occurred and be continuing, then the Administrator may remove the Trustee. If the
Administrator shall remove the Trustee under the authority of the immediately preceding sentence,
the Administrator shall promptly appoint a successor Trustee by written instrument, in duplicate,
one copy of which instrument shall be delivered to the outgoing Trustee so removed and one copy to
the successor Trustee and payment of all fees owed to the outgoing Trustee.

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     Any resignation or removal of the Trustee and appointment of a successor Trustee pursuant to
any of the provisions of this Section shall not become effective until acceptance of appointment by
the successor Trustee pursuant to Section 10.03, payment of all fees and expenses owed to the
outgoing Trustee and the filing of a certificate of amendment to the Trust’s certificate of trust
pursuant to Section 3810(b) of the Delaware Statutory Trust Act. The Administrator shall provide
notice of such resignation or removal of the Trustee and to each of the Rating Agencies.

     Section 10.03. Successor Trustee. Any successor Trustee appointed pursuant to Section
10.02 shall execute, acknowledge and deliver to the Administrator and to its predecessor Trustee an
instrument accepting such appointment under this Agreement, and thereupon the resignation or
removal of the predecessor Trustee shall become effective and such successor Trustee, without any
further act, deed or conveyance, shall become fully vested with all the rights, powers, duties and
obligations of its predecessor under this Agreement, with like effect as if originally named as
Trustee. The predecessor Trustee shall upon payment of its fees and expenses deliver to the
successor Trustee all documents, statements, moneys and properties held by it under this Agreement;
and the Administrator and the predecessor Trustee shall execute and deliver such instruments and do
such other things as may reasonably be required for fully and certainly vesting and confirming in
the successor Trustee all such rights, powers, duties and obligations.

     No successor Trustee shall accept such appointment as provided in this Section unless at the
time of such acceptance such successor Trustee shall be eligible pursuant to Section 10.01.

     Upon acceptance of appointment by a successor Trustee pursuant to this Section, the
Administrator shall mail notice of the successor of such Trustee to the holder of the Excess
Distribution Certificate, the Indenture Trustee, the Noteholders, the Rating Agencies and a Swap
Counterparty. If the Administrator shall fail to mail such notice within 10 days after acceptance
of appointment by the successor Trustee, the successor Trustee shall cause such notice to be mailed
at the expense of the Administrator.

     Section 10.04. Merger or Consolidation of Trustee. Any corporation into which the
Trustee may be merged or converted or with which it may be consolidated, or any corporation
resulting from any merger, conversion or consolidation to which the Trustee shall be a party, or
any corporation succeeding to all or substantially all the corporate trust business of the Trustee,
shall, without the execution or filing of any instrument or any further act on the part of any of
the parties hereto, anything herein to the contrary notwithstanding, be the successor of the
Trustee hereunder; provided, that such corporation shall be eligible pursuant to Section
10.01; and provided, further, that the Trustee shall mail notice of such merger or
consolidation to the Rating Agencies not less than 15 days prior to the effective date thereof and
shall file an amendment to the Certificate of Trust as required under the Delaware Statutory Trust
Act.

     Section 10.05. Appointment of Co-Trustee or Separate Trustee. Notwithstanding any
other provisions of this Agreement, at any time, for the purpose of meeting any legal requirements
of any jurisdiction in which any part of the Trust may at the time be located, the Administrator
and the Trustee acting jointly shall have the power and shall execute and deliver all instruments
to appoint one or more Persons approved by the Trustee, meeting the eligibility

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requirements of clauses (i) through (iii) of Section 10.01, to act as co-trustee, jointly with
the Trustee, or separate trustee or separate trustees, of all or any part of the Trust Estate, and
to vest in such Person, in such capacity, such title to the Trust Estate, or any part thereof, and,
subject to the other provisions of this Section, such powers, duties, obligations, rights and
trusts as the Administrator and the Trustee may consider necessary or desirable. If the
Administrator shall not have joined in such appointment within 15 days after the receipt by it of a
request so to do, the Trustee alone shall have the power to make such appointment. No co-trustee
or separate trustee under this Agreement shall be required to meet the terms of eligibility as a
successor trustee pursuant to clauses (iv), (v) and (vi) of Section 10.01 and no notice of the
appointment of any co-trustee or separate trustee shall be required pursuant to Section 10.03.

     Each separate trustee and co-trustee shall, to the extent permitted by law, be appointed and
act subject to the following provisions and conditions:

     (i) all rights, powers, duties, and obligations conferred or imposed upon the Trustee
shall be conferred upon and exercised or performed by the Trustee and such separate trustee
or co-trustee jointly (it being understood that such separate trustee or co-trustee is not
authorized to act separately without the Trustee joining in such act), except to the extent
that under any law of any jurisdiction in which any particular act or acts are to be
performed, the Trustee shall be incompetent or unqualified to perform such act or acts, in
which event such rights, powers, duties, and obligations (including the holding of title to
the Trust or any portion thereof in any such jurisdiction) shall be exercised and performed
singly by such separate trustee or co-trustee, solely at the direction of the Trustee;

     (ii) no trustee under this Agreement shall be personally liable by reason of any act or
omission of any other trustee under this Agreement; and

     (iii) the Administrator and the Trustee acting jointly may at any time accept the
resignation of or remove any separate trustee or co-trustee.

     Any notice, request or other writing given to the Trustee shall be deemed to have been given
to each of the then separate trustees and co-trustees, as effectively as if given to each of them.
Every instrument appointing any separate trustee or co-trustee shall refer to this Agreement and
the conditions of this Article. Each separate trustee and co-trustee, upon its acceptance of the
trusts conferred, shall be vested with the estates or property specified in its instrument of
appointment, either jointly with the Trustee or separately, as may be provided therein, subject to
all the provisions of this Agreement, specifically including every provision of this Agreement
relating to the conduct of, affecting the liability of, or affording protection to, the Trustee.
Each such instrument shall be filed with the Trustee and a copy thereof given to the Administrator.

     Any separate trustee or co-trustee may at any time appoint the Trustee as its agent or
attorney-in-fact with full power and authority, to the extent not prohibited by law, to do any
lawful act under or in respect of this Agreement on its behalf and in its name. If any separate
trustee or co-trustee shall die, become incapable of acting, resign or be removed, all its estates,

20

 

properties, rights, remedies and trusts shall vest in and be exercised by the Trustee, to the
extent permitted by law, without the appointment of a new or successor trustee.

ARTICLE XI

MISCELLANEOUS

     Section 11.01. Supplements and Amendments. This Agreement may be amended by the
Depositor, the Trustee, and the Indenture Trustee with respect to Sections 3.03(c) and 3.03(g) of
this Agreement, with prior written notice to the Rating Agencies, without the consent of any of the
Noteholders or a Swap Counterparty, to cure any ambiguity, to correct or supplement any provisions
in this Agreement or for the purpose of adding any provisions to or changing in any manner or
eliminating any of the provisions in this Agreement or modifying in any manner the rights of the
Noteholders or a Swap Counterparty; provided, however, that such action shall not,
as evidenced by an Opinion of Counsel, adversely affect in any material respect the interests of
any Noteholder or a Swap Counterparty.

     This Agreement may also be amended from time to time by the Depositor and the Trustee, with
prior written notice to the Rating Agencies, with the consent of Noteholders evidencing not less
than a majority of the Outstanding Amount of the Notes, for the purpose of adding any provisions to
or changing in any manner or eliminating any of the provisions of this Agreement or modifying in
any manner the rights of the Noteholders; provided, however, that no such amendment
shall (a) increase or reduce in any manner the amount of, or accelerate or delay the timing of,
collections of payments on Trust Student Loans or distributions that shall be required to be made
for the benefit of the Noteholders or (b) reduce the aforesaid percentage of the Outstanding Amount
of the Notes required to consent to any such amendment, without the consent of all the outstanding
Noteholders.

     This Agreement may also be amended from time to time by the Depositor and the Trustee, with
prior written notice to the Rating Agencies, with the consent of a Swap Counterparty for the
purpose of adding any provisions to, changing in any manner, or eliminating any of the provisions
of this Agreement or modifying in any manner the rights of a Swap Counterparty, if in the Opinion
of Counsel such amendment materially adversely affects the interests of a Swap Counterparty.

     Promptly after the execution of any such amendment or consent, the Trustee shall furnish
written notification of the substance of such amendment or consent to the holder of the Excess
Distribution Certificate, the Indenture Trustee, a Swap Counterparty and each of the Rating
Agencies.

     It shall not be necessary for the consent of the Noteholders, the Indenture Trustee, or a Swap
Counterparty pursuant to this Section to approve the particular form of any proposed amendment or
consent, but it shall be sufficient if such consent shall approve the substance thereof. The
manner of obtaining such consents (and any other consents of provided for in this Agreement or in
any other Basic Document) and of evidencing the authorization of the execution thereof shall be
subject to such reasonable requirements as the Trustee may prescribe.

21

 

     Prior to the execution of any amendment to this Agreement, the Trustee shall be entitled to
receive and rely upon an Opinion of Counsel stating that the execution of such amendment is
authorized or permitted by this Agreement and an Officer’s Certificate from the Depositor that all
conditions precedent to the execution of such amendment have been met or otherwise satisfied. The
Trustee may, but shall not be obligated to, enter into any such amendment which affects the
Trustee’s own rights, duties or immunities under this Agreement or otherwise.

     Section 11.02. No Legal Title to Trust Estate in Holder of the Excess Distribution
Certificate. The holder of the Excess Distribution Certificate shall not have legal title to
any part of the Trust Estate. The holder of the Excess Distribution Certificate shall be entitled
to receive distributions with respect to its undivided beneficial ownership interest therein only
in accordance with Section 3.03 of this Agreement. No transfer, by operation of law or otherwise,
of any right, title, or interest of the holder of the Excess Distribution Certificate to and in its
beneficial ownership interest in the Trust Estate shall operate to terminate this Agreement or the
trusts hereunder or entitle any transferee to an accounting or to the transfer to it of legal title
to any part of the Trust Estate.

     Section 11.03. Limitations on Rights of Others. Except for Section 2.07, the
provisions of this Agreement are solely for the benefit of the Trustee, the Depositor, the holder
of the Excess Distribution Certificate, the Administrator and, to the extent expressly provided
herein, the Indenture Trustee, the Noteholders and a Swap Counterparty, and nothing in this
Agreement (other than Section 2.07), whether express or implied, shall be construed to give to any
other Person any legal or equitable right, remedy or claim in the Trust Estate or under or in
respect of this Agreement or any covenants, conditions or provisions contained herein.

     Section 11.04. Notices. Unless otherwise expressly specified or permitted by the
terms hereof, all notices shall be in writing and shall be deemed given upon receipt by the
intended recipient or three Business Days after mailing if mailed by certified mail, postage
prepaid (except that notice to the Trustee shall be deemed given only upon actual receipt by the
Trustee), if to the Trustee, addressed to its Corporate Trust Office; if to the Depositor,
addressed to SLM Funding LLC, 20 Hemingway Drive, East Providence, Rhode Island 02915, if to the
Indenture Trustee, address to The Bank of New York, 101 Barclay Street, 8 West, New York, New York
10286, or, as to each party, at such other address as shall be designated by such party in a
written notice to each other party.

     Section 11.05. Severability. Any provision of this Agreement that is prohibited or
unenforceable in any jurisdiction shall, as to such jurisdiction, be ineffective to the extent of
such prohibition or unenforceability without invalidating the remaining provisions hereof, and any
such prohibition or unenforceability in any jurisdiction shall not invalidate or render
unenforceable such provision in any other jurisdiction.

     Section 11.06. Separate Counterparts. This Agreement may be executed by the parties
hereto in separate counterparts, each of which when so executed and delivered shall be an original,
but all such counterparts shall together constitute but one and the same instrument.

     Section 11.07. Successors and Assigns. All covenants and agreements contained herein
shall be binding upon to the benefit of, the Depositor and its successors, the Trustee and its

22

 

successors, each holder of the Excess Distribution Certificate and its successors and
permitted assigns, all as herein provided. Any request, notice, direction, consent, waiver or
other instrument or action by a Noteholder or the holder of an Excess Distribution Certificate
shall bind the successors and assigns of such holder.

     Section 11.08. No Petition.

     (a) Neither the Depositor, nor any other Excess Distribution Certificateholder (as evidenced
by acceptance of its Excess Distribution Certificate) will institute against the Trust, at any
time, any bankruptcy proceedings under any United States Federal or state bankruptcy or similar law
in connection with any obligations relating to the Excess Distribution Certificate, the Notes, this
Agreement or any of the other Basic Documents. The foregoing shall not limit the rights of the
Depositor, nor any Excess Distribution Certificateholder to file any claim in, or otherwise take
any action with respect to, any insolvency proceeding that was instituted against the Trust by a
Person other than the Depositor or such other Excess Distribution Certificateholder.

     (b) The Trustee (not in its individual capacity but solely as Trustee), by entering into this
Agreement, the Excess Distribution Certificateholder by accepting the Excess Distribution
Certificate, and the Indenture Trustee and each Noteholder by accepting the benefits of this
Agreement, hereby covenant and agree that they will not at any time institute against the Depositor
or the Trust, or join in any institution against the Depositor or the Trust of, any bankruptcy,
reorganization, arrangement, insolvency, receivership or liquidation proceedings, or other
proceedings under any United States Federal or state bankruptcy or similar law in connection with
any obligations relating to the Notes, this Agreement or any of the other Basic Documents. The
foregoing shall not limit the rights of the Trustee or the Indenture Trustee to file any claim in,
or otherwise take any action with respect to, any insolvency proceeding that was instituted against
the Issuer by a Person other than the Trustee or the Indenture Trustee.

     Section 11.09. No Recourse. The Excess Distribution Certificateholder by accepting
the Excess Distribution Certificate acknowledges that such holder’s certificate represents
beneficial interests in the Trust only and do not represent interests in or obligations of the
Depositor, the Servicer, the Administrator, the Trustee, the Indenture Trustee, a Swap Counterparty
or any Affiliate thereof or any officer, director or employee of any thereof and no recourse may be
had against such parties or their assets, except as may be expressly set forth or contemplated in
this Agreement, the Excess Distribution Certificate or the other Basic Documents.

     Section 11.10. Headings. The headings of the various Articles and Sections herein are
for convenience of reference only and shall not define or limit any of the terms or provisions
hereof.

     SECTION 11.11. GOVERNING LAW. THIS AGREEMENT SHALL BE GOVERNED BY AND CONSTRUED IN
ACCORDANCE WITH THE LAWS OF THE STATE OF DELAWARE, WITHOUT REFERENCE TO ITS CONFLICT OF LAW
PROVISIONS, AND THE OBLIGATIONS, RIGHTS AND REMEDIES OF THE PARTIES HEREUNDER SHALL BE DETERMINED
IN ACCORDANCE WITH SUCH LAWS.

23

 

     SECTION 11.12. Waiver of Jury Trial. EACH OF THE PARTIES TO THIS AGREEMENT HEREBY
IRREVOCABLY WAIVES, TO THE FULLEST EXTENT PERMITTED BY APPLICABLE LAW, ANY AND ALL RIGHT TO TRIAL
BY JURY IN ANY LEGAL PROCEEDING ARISING OUT OF OR RELATING TO THIS AGREEMENT, THE NOTES OR THE
TRANSACTION CONTEMPLATED HEREBY.

ARTICLE XII

Compliance with Regulation AB 

     SECTION 12.01. Intent of the Parties; Reasonableness. The Depositor, the Eligible
Lender Trustee, and the Indenture Trustee acknowledge and agree that the purpose of Article XII of
this Agreement is to facilitate compliance by the Depositor and the Issuer with the provisions of
Regulation AB and related rules and regulations of the Commission.

     Neither the Depositor, the Eligible Lender Trustee, nor the Indenture Trustee shall exercise
its right to request delivery of information or other performance under these provisions other than
in good faith, or for purposes other than compliance with the Securities Act, the Exchange Act and
the rules and regulations of the Commission thereunder (or the provision in a private offering of
disclosure comparable to that required under the Securities Act). The Indenture Trustee
acknowledges that interpretations of the requirements of Regulation AB may change over time,
whether due to interpretive guidance provided by the Commission or its staff, consensus among
participants in the asset-backed securities markets, advice of counsel, or otherwise, and agrees to
comply with requests made by the Depositor in good faith for delivery of information under these
provisions on the basis of evolving interpretations of Regulation AB. In connection therewith, the
Indenture Trustee and the Eligible Lender Trustee shall cooperate fully with the Depositor to
deliver to the Depositor (including any of its assignees or designees), any and all statements,
reports, certifications, records, attestations, and any other information necessary in the good
faith determination of the Depositor, to permit the Depositor to comply with the provisions of
Regulation AB, together with such disclosures relating to the Eligible Lender Trustee, Indenture
Trustee or the servicing of the Trust Student Loans, reasonably believed by the Depositor to be
necessary in order to effect such compliance.

24

 

     IN WITNESS WHEREOF, the parties hereto have caused this Amended and Restated Trust Agreement
to be duly executed by their respective officers hereunto duly authorized, as of the day and year
first above written.

	 	 	 	 	 
	 	 	CHASE BANK USA,
	 	 	NATIONAL ASSOCIATION,
	 	 	not in its individual capacity but solely as

Trustee
	 
	 	 	 	 
	 

	 	By:
	 	     /S/ JOHN J. CASHIN
	 

	 	 	 	 
	 

	 	 	 	Name: John J. Cashin
	 

	 	 	 	Title: Vice President
	 
	 	 	 	 
	 	 	SLM FUNDING LLC,
	 	 	as Depositor
	 
	 	 	 	 
	 

	 	By:
	 	     /S/ MARK L. HELEEN
	 

	 	 	 	 
	 

	 	 	 	Name: Mark L. Heleen
	 

	 	 	 	Title: Vice President

Acknowledged and agreed as to

Section 3.03(c) and Section 3.03(g)

of this Amended and Restated Trust Agreement:

	 	 	 	 	 
	 	 	THE BANK OF NEW YORK,
	 	 	not in its individual capacity but solely

as the Indenture Trustee, acting as the Excess

Distribution Certificate Paying Agent
	 
	 	 	 	 
	 

	 	By:
	 	     /S/ ERIC A. LINDAHL
	 

	 	 	 	 
	 

	 	 	 	Name: Eric A. Lindahl
	 

	 	 	 	Title: Agent

25

 

EXHIBIT A

TO THE TRUST AGREEMENT

[FORM OF EXCESS DISTRIBUTION CERTIFICATE]

SEE REVERSE FOR CERTAIN DEFINITIONS

[PLEASE SEE ATTACHED]

Exhibit A- 1

 

EXHIBIT B

FORM OF

CERTIFICATE OF TRUST

OF

SLM PRIVATE CREDIT STUDENT LOAN

TRUST 2006-C

     This Certificate of Trust of SLM PRIVATE CREDIT STUDENT LOAN TRUST 2006-C (the “Trust”) is
being duly executed and filed on behalf of the Trust by the undersigned, as trustee, to form a
statutory trust under the Delaware Statutory Trust Act (12 Del. C. § 3801 et seq.) (the
“Act”).

     1. Name. The name of the statutory trust formed by this Certificate of Trust is SLM
PRIVATE CREDIT STUDENT LOAN TRUST 2006-C.

     2. Delaware Trustee. The name and business address of the trustee of the Trust in the State
of Delaware are the Chase Bank USA, National Association, c/o JPMorgan Chase Bank, National
Association, 500 Stanton Christiana Road, Christiana Center/OPS4/3rd Floor, Newark,
Delaware 19713. Attn: Institutional Trust Services.

     3. Effective Date. This Certificate of Trust shall be effective upon filing.

IN WITNESS WHEREOF, the undersigned has duly executed this Certificate of Trust in accordance
with Section 3811(a)(1) of the Act.

	 	 	 	 	 
	 	 	CHASE BANK USA,
	 	 	NATIONAL ASSOCIATION, not in its

individual capacity but solely as Trustee
	 
	 	 	 	 
	 

	 	By:	 	 
	 

	 	 	 	 
	 

	 	Name:	 	 
	 

	 	Title:	 	 

Exhibit B- 1

 

EXHIBIT C

[FORM OF TRANSFEROR LETTER]

[Date]

Sallie Mae, Inc.

as Administrator

12061 Bluemont Way

Reston, Virginia 20190

Chase Bank USA, National Association

as Trustee

Christiana Center/OPS4

500 Stanton Christiana Road

Newark, Delaware 19713

The Bank of New York,

as Excess Distribution Certificate Registrar

101 Barclay Street, 8 West

New York, New York 10286

Attention: Corporate Trust Administration

	 	 	 
	Re:

	 	SLM Private Credit Student Loan Trust 2006-C,
	 

	 	Excess Distribution Certificate (the “Certificate”)

Ladies and Gentlemen:

     In connection with our disposition of the above Certificate, we certify that (a) we understand
that the Certificate has not been registered under the Securities Act of 1933, as amended (the
“Securities Act”), and is being disposed by us in a transaction that is exempt from the
registration requirements of the Securities Act, and (b) we have not offered or sold the
Certificate to, or solicited offers to buy the Certificate from, any person, or otherwise
approached or negotiated with any person with respect thereto, in a manner that would be deemed, or
taken any other action would result in, a violation of Section 5 of the Securities Act.

	 	 	 	 	 
	Very truly yours,	 	 
	 
	 	 	 	 
	 	 	 
	[Print Name of Transferor]	 	 
	 
	 	 	 	 
	By:
	 	 	 	 
	 

	 	 

Authorized Officer
	 	 

Exhibit C- 1

 

EXHIBIT D-1

[FORM OF TRANSFEREE LETTER (NON-RULE 144A)]

[Date]

Sallie Mae, Inc.

as Administrator

12061 Bluemont Way

Reston, Virginia 20190

Chase Bank USA, National Association

as Trustee

Christiana Center/OPS4

500 Stanton Christiana Road

Newark, Delaware 19713

The Bank of New York,

as Excess Distribution Certificate Registrar

101 Barclay Street 8 West

New York, New York 10286

Attention: Corporate Trust Administration

	 	 	 
	Re:

	 	SLM Private Credit Student Loan Trust 2006-C,
	 

	 	Excess Distribution Certificate (the “Certificate”)

Ladies and Gentlemen:

     In connection with our acquisition of the above Certificate, we certify that (a) we understand
that the Certificate is not being registered under the Securities Act of 1933, as amended (the
“Securities Act”), or any state securities laws and is being transferred to us in a transaction
that is exempt from the registration requirements of the Securities Act and any such laws, (b) we
are an institutional “accredited investor,” as defined in Rule 501 (a) (1), (2), (3) or (7) of
Regulation D under the Securities Act or an entity in which all of the equity owners come within
such paragraphs, and have such knowledge and experience in financial and business matters that we
are capable of evaluating the merits and risks of investments in the Certificate, (c) we have had
the opportunity to ask questions of and receive answers from the Depositor concerning the purchase
of the Certificate and all matters relating thereto or any additional information deemed necessary
to our decision to purchase the Certificate, (d) we are not acquiring the Certificate for, by or
for the account of (i) any Benefit Plan subject to Title I of ERISA and/or Section 4975 of the
Code, if such acquisition, or the management or servicing of the Trust or its assets, would cause a
non-exempt prohibited transaction in violation of Section 406 of ERISA and/or Section 4975 of the
Code, (ii) any Benefit Plan subject to a substantially similar federal, state, local or foreign
law, if such acquisition would cause a non-exempt violation of such substantially similar law,
(iii) any person who is not a United States person

Exhibit D- 1- 1

 

within the meaning of Section 7701(a)(30) of the Code, or (iv) any “pass-thru entity” referred
to in Section 1(h)(10)(D), (E) or (F) of the Code, the income of which pass-thru entity is
includible directly or indirectly through one or more other such pass-thru entities by any person
referred to in clause (iii) above, (e) we are acquiring the Certificate for investment for our own
account and not with a view to any distribution of the Certificate (but without prejudice to our
right at all times to sell or otherwise dispose of the Certificate in accordance with clause (g)
below), (f) we have not offered or sold the Certificate to, or solicited offers to buy the
Certificate from, any person, or otherwise approached or negotiated with any person with respect
thereto, or taken any other action which would result in a violation of Section 5 of the Securities
Act, and (g) we will not sell, transfer or otherwise dispose of the Certificate unless (1) such
sale, transfer or other disposition is made pursuant to an effective registration statement under
the Securities Act or is exempt from such registration requirements, and if requested, we will at
our expense provide an opinion of counsel satisfactory to the addressees of this Letter that such
sale, transfer or other disposition may be made pursuant to an exemption from the Securities Act,
(2) the purchaser or transferee of such Certificate has executed and delivered to you a certificate
to substantially the same effect as this certificate and (3) the purchaser or transferee has
otherwise complied with any conditions for transfer set forth in the Trust Agreement relating to
the Certificate.

     Except as otherwise specified herein or as the context may otherwise require, capitalized
terms used but not otherwise defined herein are defined in Appendix A to the Amended and Restated
Trust Agreement dated as of September 28, 2006, among SLM Funding LLC, as the Depositor, Chase Bank
USA, National Association, not in its individual capacity, but solely as the Trustee, and The Bank
of New York, not in its individual capacity, but solely as the Indenture Trustee, acting as the
Excess Distribution Certificate Paying Agent.

	 	 	 	 	 
	 	 	Very truly yours,
	 
	 	 	 	 
	 	 	 
	 

	 	[Print
	 	Name of Transferee]
	 
	 	 	 	 
	 

	 	By:	 	 
	 

	 	 	 	 
	 

	 	 	 	Authorized Officer

Exhibit D- 1- 2

 

EXHIBIT D-2

[FORM OF TRANSFEREE LETTER (RULE 144A)]

[Date]

Sallie Mae, Inc.

as Administrator

12061 Bluemont Way

Reston, Virginia 20190

Chase Bank USA, National Association

as Trustee

Christiana Center/OPS4

500 Stanton Christiana Road

Newark, Delaware 19713

The Bank of New York,

as Excess Distribution Certificate Registrar

101 Barclay Street 8 West

New York, New York 10286

Attention: Corporate Trust Administration

	 	 	 
	Re:

	 	SLM Private Credit Student Loan Trust 2006-C,
	 

	 	Excess Distribution Certificate (the “Certificate”)

Ladies and Gentlemen:

     In connection with our acquisition of the above Certificate, we certify that (a) we understand
that the Certificate is not being registered under the Securities Act of 1933, as amended (the
“Securities Act”), or any state securities laws and are being transferred to us in a transaction
that is exempt from the registration requirements of the Securities Act and any such laws, (b) we
have such knowledge and experience in financial and business matters that we are capable of
evaluating the merits and risks of investments in the Certificate, (c) we have had the opportunity
to ask questions of and receive answers from the Depositor concerning the purchase of the
Certificate and all matters relating thereto or any additional information deemed necessary to our
decision to purchase the Certificate, (d) we are not acquiring the Certificate by or for the
account of (i) any Benefit Plan subject to Title I of ERISA and/or Section 4975 of the Code, if
such acquisition, or the management or servicing of the Trust or its assets, would cause a
non-exempt prohibited transaction in violation of Section 406 of ERISA and/or Section 4975 of the
Code, (ii) any Benefit Plan subject to a substantially similar federal, state, local or foreign
law, if such acquisition would cause a non-exempt violation of such substantially similar law,
(iii) any person who is not a United States person within the meaning of Section 7701(a)(30) of the
Code, or (iv) any “pass-thru entity” referred to in Section 1(h)(10)(D), (E) or (F) of the Code,
the income of which pass-thru entity is includible directly or indirectly through one or more other

Exhibit D- 2- 1

 

such pass-thru entities by any person referred to in clause (iii) above, (e) we have not, nor
has anyone acting on our behalf offered, transferred, pledged, sold or otherwise disposed of the
Certificate, any interest in the Certificate or any other similar security to, or solicited any
offer to buy or accept a transfer, pledge or other disposition of the Certificate, any interest in
the Certificate or any other similar security from, or otherwise approached or negotiated with
respect to the Certificate, any interest in the Certificate or any other similar security with, any
person in any manner, or made any general solicitation by means of general advertising or in any
other manner, or taken any other action, that would constitute a distribution of the Certificate
under the Securities Act or that would render the disposition of the Certificate a violation of
Section 5 of the Securities Act or require registration pursuant thereto, nor will act, nor has
authorized or will authorize any person to act, in such manner with respect to the Certificate, (f)
we are a “qualified institutional buyer” as that term is defined in Rule 144A under the Securities
Act (“Rule 144A”) and have completed either of the forms of certification to that effect attached
hereto as Annex 1 or Annex 2. We are aware that the sale to us is being made in reliance on Rule
144A. We are acquiring the Certificate for our own account or for resale pursuant to Rule 144A and
further understand that the Certificate may be resold, pledged or transferred only (1) to a person
reasonably believed to be a qualified institutional buyer that purchases for its own account or for
the account of a qualified institutional buyer to whom notice is given that the resale, pledge or
transfer is being made in reliance on Rule 144A, or (ii) pursuant to another exemption from
registration under the Securities Act.

     Except as otherwise specified herein or as the context may otherwise require, capitalized
terms used but not otherwise defined herein are defined in Appendix A to the Amended and Restated
Trust Agreement dated as of September 28, 2006, among SLM Funding LLC, as the Depositor, Chase Bank
USA, National Association, not in its individual capacity, but solely as the Trustee, and The Bank
of New York, not in its individual capacity, but solely as the Indenture Trustee, acting as the
Excess Distribution Certificate Paying Agent.

	 	 	 	 	 
	 	 	Very truly yours,
	 
	 	 	 	 
	 	 	 
	 

	 	[Print
	 	Name of Transferee]
	 
	 	 	 	 
	 

	 	By:	 	 
	 

	 	 	 	 
	 

	 	 	 	Authorized Officer

Exhibit D- 2- 2

 

ANNEX 1

QUALIFIED INSTITUTIONAL BUYER STATUS UNDER SEC RULE 144A

[For Transferees Other Than Registered Investment Companies]

     The undersigned (the “Buyer”) hereby certifies as follows to the parties listed in the Rule
144A Transferee Letter to which this certification relates with respect to the Certificate
described therein:

	 	1.	 	As indicated below, the undersigned is the President, Chief Financial Officer,
Senior Vice President or other executive officer of the Buyer.
	 
	 	2.	 	In connection with purchases by the Buyer, the Buyer is a “qualified
institutional buyer” as that term is defined in Rule 144A under the Securities Act of
1933, as amended (“Rule 144A”) because (i) the Buyer owned and/or invested on a
discretionary basis $                    1 in securities (except for the excluded
securities referred to below) as of the end of the Buyer’s most recent fiscal year
(such amount being calculated in accordance with Rule 144A) and (ii) the Buyer
satisfies the criteria in the category marked below.

	 	       	 	 Corporation, etc. The Buyer is a corporation (other
than a bank, savings and loan association or similar institution),
Massachusetts or similar business trust, partnership, or charitable
organization described in Section 501 (c) (3) of the Internal Revenue Code of
1986, as amended.
	 
	 	       	 	 Bank. The Buyer (a) is a national bank or banking
institution organized under the laws of any State, territory or the District of
Columbia, the business of which is substantially confined to banking and is
supervised by the State or territorial banking commission or similar official
or is a foreign bank or equivalent institution, and (b) has an audited net
worth of at least $25,000,000 as demonstrated in its latest annual financial
statements, a copy of which is attached hereto.
	 
	 	       	 	 Savings and Loan. The Buyer (a) is a savings and loan
association, building and loan association, cooperative bank, homestead
association or similar institution, which is supervised and examined by a State
or Federal authority having supervision over any such institutions or is a
foreign savings and loan association or equivalent institution and (b) has an
audited net worth of at least $25,000,000 as demonstrated in its latest annual
financial statements, a copy of which is attached hereto.

 

			
	1	 	Buyer must own and/or invest on a
discretionary basis at least $100,000,000 in securities unless Buyer is a
dealer, and, in that case, Buyer must own and/or invest on a discretionary
basis at least $10,000,000 in securities.

Annex 1- 1

 

	 	       	 	 Broker-dealer. The Buyer is a dealer registered
pursuant to Section 15 of the Securities Exchange Act of 1934.
	 
	 	 	 	a Insurance Company. The Buyer is an insurance company
whose primary and predominant business activity is the writing of insurance or
the reinsuring of risks underwritten by insurance companies and which is
subject to supervision by the insurance commissioner or a similar official or
agency of a State, territory or the District of Columbia.
	 
	 	       	 	State or Local Plan. The Buyer is a plan established
and maintained by a State, its political subdivisions, or any agency or
instrumentality of the State or its political subdivisions, for the benefit of
its employees.
	 
	 	       	 	ERISA Plan. The Buyer is an employee benefit plan
within the meaning of Title I of the Employee Retirement Income Security Act of
1974.
	 
	 	       	 	Investment Advisor. The Buyer is an investment advisor
registered under the Investment Advisors Act of 1940.
	 
	 	       	 	Small Business Investment Company. The Buyer is a
small business investment company licensed by the U.S. Small Business
Administration under Section 301(c) or (d) of the Small Business Investment Act
of 1958.
	 
	 	       	 	Business Development Company. The Buyer is a business
development company as defined in Section 202(a)(22) of the Investment Advisors
Act of 1940.
	 
	 	       	 	Qualified Institutional Buyers. The Buyer owned and/or
invested on a discretionary basis less than $100,000,000, but it is an entity
in which all of the equity owners are qualified institutional buyers.

	 	3.	 	The term “securities” as used herein does not include (i)
securities of issuers that are affiliated with the Buyer, (ii) securities that are part
of an unsold allotment to or subscription by the Buyer, if the Buyer is a dealer, (iii)
securities issued or guaranteed by the U.S. or any instrumentality thereof, (iv) bank
deposit notes and certificates of deposit, (v) loan participations, (vi) repurchase
agreements, (vii) securities owned but subject to a repurchase agreement and (viii)
currency, interest rate and commodity swaps.
	 
	 	4.	 	For purposes of determining the aggregate amount of securities owned and/or
invested on a discretionary basis by the Buyer, the Buyer used the cost of such
securities to the Buyer and did not include any of the securities referred to in the
preceding paragraph, except (i) where the Buyer reports its securities holdings in its
financial statements on the basis of their market value, and (ii) no current
information with respect to the cost of those securities has been published. If clause
(ii) in the preceding sentence applies, the securities may be valued at market.
Further, in determining such aggregate amount, the Buyer may have included securities
owned by subsidiaries of the Buyer, but only if such

Annex 1- 2

 

	 	 	 	subsidiaries are consolidated with the Buyer in its financial statements prepared in
accordance with generally accepted accounting principles and if the investments of
such subsidiaries are managed under the Buyer’s direction. However, such securities
were not included if the Buyer is a majority-owned, consolidated subsidiary of
another enterprise and the Buyer is not itself a reporting company under the
Securities Exchange Act of 1934, as amended.

	 	5.	 	The Buyer acknowledges that it is familiar with Rule 144A and understands that
the seller to it and other parties related to the Certificate are relying and will
continue to rely on the statements made herein because one or more sales to the Buyer
may be in reliance on Rule 144A.
	 
	 	6.	 	Until the date of purchase of the Rule 144A Securities, the Buyer will notify
each of the parties to which this certification is made of any changes in the
information and conclusions herein. Until such notice is given, the Buyer’s purchase
of the Certificate will constitute a reaffirmation of this certification as of the date
of such purchase. In addition, if the Buyer is a bank or savings and loan is provided
above, the Buyer agrees that it will furnish to such parties updated annual financial
statements promptly after they become available.

	 	 	 	 	 
	 	 	 
	[Print Name of Transferee]	 	 
	 
	 	 	 	 
	By:
	 	 	 	 
	 

	 	 

Name:
	 	 
	 

	 	Title:	 	 

Date:                                        

Annex 1- 3

 

ANNEX 2

QUALIFIED INSTITUTIONAL BUYER STATUS UNDER SEC RULE 144A

[For Transferees That are Registered Investment Companies]

     The undersigned (the “Buyer”) hereby certifies as follows to the parties listed in the Rule
144A Transferee Letter to which this certification relates with respect to the Certificate
described therein:

	 	1.	 	As indicated below, the undersigned is the President, Chief Financial Officer
or Senior Vice President of the Buyer or, if the Buyer is a “qualified institutional
buyer” as that term is defined in Rule 144A under the Securities Act of 1933, as
amended (“Rule 144A”) because Buyer is part of a Family of Investment Companies (as
defined below), is such an officer of the Adviser.
	 
	 	2.	 	In connection with purchases by Buyer, the Buyer is a “qualified institutional
buyer” as defined in SEC Rule 144A because (i) the Buyer is an investment company
registered under the Investment Company Act of 1940, as amended and (ii) as marked
below, the Buyer alone, or the Buyer’s Family of Investment Companies, owned at least
$100,000,000 in securities (other than the excluded securities referred to below) as of
the end of the Buyer’s most recent fiscal year. For purposes of determining the amount
of securities owned by the Buyer or the Buyer’s Family of Investment Companies, the
cost of such securities was used, except (i) where the Buyer or the Buyer’s Family of
Investment Companies reports its securities holdings in its financial statements on the
basis of their market value, and (ii) no current information with respect to the cost
of those securities has been published. If clause (ii) in the preceding sentence
applies, the securities may be valued at market.

	 	       	 	The Buyer owned $                     in securities (other than the
excluded securities referred to below) as of the end of the Buyer’s most recent
fiscal year (such amount being calculated in accordance with Rule 144A).
	 
	 	       	 	The Buyer is part of a Family of Investment Companies which
owned in the aggregate $                     in securities (other than the excluded
securities referred to below) as of the end of the Buyer’s most recent fiscal
year (such amount being calculated in accordance with Rule 144A).

	 	3.	 	The term “Family of Investment Companies” as used herein means two or
more registered investment companies (or series thereof) that have the same investment
adviser or investment advisers that are affiliated (by virtue of being majority owned
subsidiaries of the same parent or because one investment adviser is a majority owned
subsidiary of the other).

Annex 2- 1

 

	 	4.	 	The term “securities” as used herein does not include (i) securities of
issuers that are affiliated with the Buyer or are part of the Buyer’s Family of
Investment Companies, (ii) securities issued or guaranteed by the U.S. or any
instrumentality thereof, (iii) bank deposit notes and certificates of deposit, (iv)
loan participations, (v) repurchase agreements, (vi) securities owned but subject to a
repurchase agreement and (vii) currency, interest rate and commodity swaps.
	 
	 	5.	 	The Buyer is familiar with Rule 144A and understands that the parties listed in
the Rule 144A Transferee Letter to which this certification relates are relying and
will continue to rely on the statements made herein because one or more sales to the
Buyer will be in reliance on Rule 144A. In addition, the Buyer will only purchase for
the Buyer’s own account.
	 
	 	6.	 	Until the date of purchase of the Certificate, the undersigned will notify the
parties listed in the Rule 144A Transferee Letter to which this certification relates
of any changes in the information and conclusions herein. Until such notice is given,
the Buyer’s purchase of the Certificate will constitute a reaffirmation of this
certification by the undersigned as of the date of such purchase.

	 	 	 	 	 
	 	 	 
	 	 	Print Name of Buyer or Adviser
	 
	 	 	 	 
	 

	 	By:	 	 
	 

	 	 	 	 
	 

	 	 	 	Name:
	 

	 	 	 	Title:
	 
	 	 	 	 
	 	 	[IF AN ADVISER:]
	 
	 	 	 	 
	 	 	 
	 	 	Print Name of Buyer
	 
	 	 	 	 
	 

	 	Date:	 	 
	 

	 	 	 	 

Annex 2- 2

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