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      Exhibit
10.1

      
        

      

       

      CREDIT
AGREEMENT

       

      among

       

       

      M/I
FINANCIAL CORP.,

      as the
Borrower,

       

      The
Lenders Party Hereto,

       

      and

       

      GUARANTY
BANK

      as
Administrative Agent

       

      ____________________________

       

      May 22,
2008

       

      
        

      

      

      
        
           

        

        
           

          
            

          

        

        
           

          
            TABLE
OF CONTENTS

          

        

      

      

       

      ARTICLE
I                            GENERAL
TERMS 

      
        	
                 
      

              	
                Section
      1.1Certain Definitions

              

      

      
        	
                 
      

              	
                Section
      1.2Exhibits and Schedules

              

      

      
        	
                 
      

              	
                Section
      1.3Calculations and Determinations

              

      

       

      ARTICLE
II                            AMOUNT
AND TERMS OF LOANS 

      
        	
                 
      

              	
                Section
      2.1Commitment and Loans

              

      

      
        	
                 
      

              	
                Section
      2.2Promissory Notes; Interest on the
Notes

              

      

      
        	
                 
      

              	
                Section
      2.3Notice and Manner of Obtaining
Loans

              

      

      
        	
                 
      

              	
                Section
      2.4Fees.

              

      

      
        	
                 
      

              	
                Section
      2.5Mandatory Repayments

              

      

      
        	
                 
      

              	
                Section
      2.6Payments to the Administrative
Agent

              

      

      
        	
                 
      

              	
                Section
      2.7Notification by the Administrative
Agent

              

      

      
        	
                 
      

              	
                Section
      2.8Non-Receipt of Funds by the Administrative
  Agent.

              

      

      
        	
                 
      

              	
                Section
      2.9Increased Cost and Reduced
Return.

              

      

      
        	
                 
      

              	
                Section
      2.10Settlement Account

              

      

       

      ARTICLE
IIICONDITIONS PRECEDENT 

      
        	
                 
      

              	
                Section
      3.1Initial Loan

              

      

      
        	
                 
      

              	
                Section
      3.2All Loans

              

      

       

      ARTICLE
IVBORROWER REPRESENTATIONS AND WARRANTIES 

      
        	
                 
      

              	
                Section
      4.1Organization and Good Standing

              

      

      
        	
                 
      

              	
                Section
      4.2Authorization and Power

              

      

      
        	
                 
      

              	
                Section
      4.3No Conflicts or Consents

              

      

      
        	
                 
      

              	
                Section
      4.4Enforceable Obligations

              

      

      
        	
                 
      

              	
                Section
      4.5Priority of Liens

              

      

      
        	
                 
      

              	
                Section
      4.6No Liens

              

      

      
        	
                 
      

              	
                Section
      4.7Financial Condition of the
Borrower

              

      

      
        	
                 
      

              	
                Section
      4.8Full Disclosure

              

      

      
        	
                 
      

              	
                Section
      4.9No Default

              

      

      
        	
                 
      

              	
                Section
      4.10No Litigation

              

      

      
        	
                 
      

              	
                Section
      4.11Taxes

              

      

      
        	
                 
      

              	
                Section
      4.12Principal Office, etc

              

      

      
        	
                 
      

              	
                Section
      4.13Compliance with ERISA

              

      

      
        	
                 
      

              	
                Section
      4.14Subsidiaries

              

      

      
        	
                 
      

              	
                Section
      4.15Indebtedness

              

      

      
        	
                 
      

              	
                Section
      4.16Permits, Patents, Trademarks, etc.

              

      

      
        	
                 
      

              	
                Section
      4.17Status Under Certain Federal
Statutes

              

      

      
        	
                 
      

              	
                Section
      4.18Securities Act

              

      

      
        	
                 
      

              	
                Section
      4.19No Approvals Required

              

      

      
        	
                 
      

              	
                Section
      4.20Survival of Representations

              

      

      
        	
                 
      

              	
                Section
      4.21Compliance with Laws

              

      

      
        	
                 
      

              	
                Section
      4.22Payment of Obligations

              

      

      
        	
                 
      

              	
                Section
      4.23Individual Mortgage Loans

              

      

      
        	
                 
      

              	
                Section
      4.24Environmental Matters

              

      

      
        	
                 
      

              	
                Section
      4.25Status as Approved
Seller/Servicer

              

      

      
        	
                 
      

              	
                Section
      4.26Regulation U

              

      

       

      ARTICLE
V                            AFFIRMATIVE
COVENANTS 

      
        	
                 
      

              	
                Section
      5.1Financial Statements and
Reports.

              

      

      
        	
                 
      

              	
                Section
      5.2Taxes and Other Liens

              

      

      
        	
                 
      

              	
                Section
      5.3Maintenance

              

      

      
        	
                 
      

              	
                Section
      5.4Further Assurances

              

      

      
        	
                 
      

              	
                Section
      5.5Reimbursement of Expenses

              

      

      
        	
                 
      

              	
                Section
      5.6Insurance

              

      

      
        	
                 
      

              	
                Section
      5.7Accounts and Records: Servicing
Records

              

      

      
        	
                 
      

              	
                Section
      5.8Right of Inspection

              

      

      
        	
                 
      

              	
                Section
      5.9Notice of Certain Events

              

      

      
        	
                 
      

              	
                Section
      5.10Performance of Certain Obligations and Information Regarding
      Investors

              

      

      
        	
                 
      

              	
                Section
      5.11Use of Proceeds: Margin Stock

              

      

      
        	
                 
      

              	
                Section
      5.12Notice of Default

              

      

      
        	
                 
      

              	
                Section
      5.13Compliance with Loan Documents

              

      

      
        	
                 
      

              	
                Section
      5.14Operations and Properties

              

      

      
        	
                 
      

              	
                Section
      5.15Environmental Matters.

              

      

      
        	
                 
      

              	
                Section
      5.16MERS Status.

              

      

      
        	
                 
      

              	
                Section
      5.17Hedging Arrangements

              

      

       

      ARTICLE
VINEGATIVE COVENANTS

      
        	
                 
      

              	
                Section
      6.1No Merger; Limitation on Issuance of
  Securities

              

      

      
        	
                 
      

              	
                Section
      6.2Limitation on Indebtedness

              

      

      
        	
                 
      

              	
                Section
      6.3Fiscal Year, Method of
Accounting

              

      

      
        	
                 
      

              	
                Section
      6.4Business

              

      

      
        	
                 
      

              	
                Section
      6.5Liquidations, Consolidations and Dispositions of Substantial
      Assets

              

      

      
        	
                 
      

              	
                Section
      6.6Loans, Advances, and Investments

              

      

      
        	
                 
      

              	
                Section
      6.7Use of Proceeds

              

      

      
        	
                 
      

              	
                Section
      6.8Actions with Respect to Mortgage
Collateral

              

      

      
        	
                 
      

              	
                Section
      6.9Transactions with Affiliates

              

      

      
        	
                 
      

              	
                Section
      6.10Liens

              

      

      
        	
                 
      

              	
                Section
      6.11ERISA Plans

              

      

      
        	
                 
      

              	
                Section
      6.12Change of Principal Office

              

      

      
        	
                 
      

              	
                Section
      6.13Tangible Net Worth

              

      

      
        	
                 
      

              	
                Section
      6.14Total Liabilities to Adjusted Tangible Net
  Worth

              

      

      
        	
                 
      

              	
                Section
      6.15Adjusted Tangible Net Worth

              

      

      
        	
                 
      

              	
                Section
      6.16Dividends

              

      

       

      ARTICLE
VIIEVENTS OF DEFAULT

      
        	
                 
      

              	
                Section
      7.1Nature of Event

              

      

      
        	
                 
      

              	
                Section
      7.2Default Remedies

              

      

      
        	
                 
      

              	
                Section
      7.3Application of Proceeds

              

      

      
        	
                 
      

              	
                Section
      7.4Preservation of Rights

              

      

       

      ARTICLE
VIIIINDEMNIFICATION

      
        	
                 
      

              	
                Section
      8.1Indemnification

              

      

      
        	
                 
      

              	
                Section
      8.2Limitation of Liability

              

      

       

      ARTICLE
IXTHE ADMINISTRATIVE AGENT 

      
        	
                 
      

              	
                Section
      9.1Appointment

              

      

      
        	
                 
      

              	
                Section
      9.2Delegation of Duties

              

      

      
        	
                 
      

              	
                Section
      9.3Exculpatory Provisions

              

      

      
        	
                 
      

              	
                Section
      9.4Reliance by Agent

              

      

      
        	
                 
      

              	
                Section
      9.5Notice of Default

              

      

      
        	
                 
      

              	
                Section
      9.6Non-Reliance on Administrative Agent and Other
  Lenders

              

      

      
        	
                 
      

              	
                Section
      9.7Indemnification

              

      

      
        	
                 
      

              	
                Section
      9.8Agent in Its Individual Capacity

              

      

      
        	
                 
      

              	
                Section
      9.9Successor Administrative Agent

              

      

      
        	
                 
      

              	
                Section
      9.10Administrative Agent's Discretionary
  Authority

              

      

       

      ARTICLE
X                            TAXES
AND YIELD PROTECTION 

      
        	
                 
      

              	
                Section
      10.1Taxes.

              

      

      
        	
                 
      

              	
                Section
      10.2Increased Costs.

              

      

      
        	
                 
      

              	
                Section
      10.3Mitigation Obligations; Replacement of
  Lenders.

              

      

      
        	
                 
      

              	
                Section
      10.4Survival

              

      

       

      ARTICLE
XIMISCELLANEOUS 

      
        	
                 
      

              	
                Section
      11.1Notices

              

      

      
        	
                 
      

              	
                Section
      11.2Amendments, Etc

              

      

      
        	
                 
      

              	
                Section
      11.3CHOICE OF LAW; VENUE

              

      

      
        	
                 
      

              	
                Section
      11.4Invalidity

              

      

      
        	
                 
      

              	
                Section
      11.5Survival of Agreements

              

      

      
        	
                 
      

              	
                Section
      11.6Renewal, Extension or
Rearrangement

              

      

      
        	
                 
      

              	
                Section
      11.7Waivers

              

      

      
        	
                 
      

              	
                Section
      11.8Cumulative Rights

              

      

      
        	
                 
      

              	
                Section
      11.9Limitation on Interest

              

      

      
        	
                 
      

              	
                Section
      11.10Bank Accounts; Offset

              

      

      
        	
                 
      

              	
                Section
      11.11Assignments.

              

      

      
        	
                 
      

              	
                Section
      11.12Exhibits

              

      

      
        	
                 
      

              	
                Section
      11.13Titles of Articles, Sections and
  Subsections

              

      

      
        	
                 
      

              	
                Section
      11.14Counterparts; Fax

              

      

      
        	
                 
      

              	
                Section
      11.15Termination; Limited Survival

              

      

      
        	
                 
      

              	
                Section
      11.16Joint and Several Liability

              

      

      
        	
                 
      

              	
                Section
      11.17Disclosures

              

      

      
        	
                 
      

              	
                Section
      11.18Time is of the Essence

              

      

      
        	
                 
      

              	
                Section
      11.19USA Patriot Act Notice

              

      

      
        	
                 
      

              	
                Section
      11.20Electronic Transactions

              

      

      
        	
                 
      

              	
                Section
      11.21No Reliance

              

      

      
        	
                 
      

              	
                Section
      11.22WAIVER OF JURY TRIAL

              

      

      
        	
                 
      

              	
                Section
      11.23CONSEQUENTIAL DAMAGES

              

      

      
        	
                 
      

              	
                Section
      11.24ENTIRE AGREEMENT

              

      

      

      
        
           

        

        
           

          
            

          

        

        
           

          
            TABLE
OF CONTENTS

            (continued)

          

        

      

      SCHEDULES

       

      Schedule
1.1               Commitments
and Commitment Percentages

       

      Schedule
1.2               Approved
Investors

       

      Schedule
4.14             Subsidiaries

       

      Schedule
6.2                Related
Person Indebtedness

       

      

       

      

       

      EXHIBITS

       

      Exhibit
A                      Form
of Note

       

      Exhibit
B                      Form
of Borrowing Request

       

      Exhibit
C                      Certificate
Accompanying Financial Statement

       

      Exhibit
D                      Borrowing
Base Certificate

       

      Exhibit
E                      Form
of Security Agreement

       

      
        
           

        

        
           

          
            

          

        

        
           

        

      

      CREDIT
AGREEMENT

       

      THIS
CREDIT AGREEMENT is made and entered into as of May 22, 2008, among M/I
FINANCIAL CORP., an Ohio corporation (the "the
Borrower"), each lender from time to time party hereto (collectively, the
"Lenders"
and individually, a "Lender"),
and GUARANTY BANK, as Administrative Agent.

       

      The
Borrower has requested that the Lenders provide a credit facility, and the
Lenders are willing to do so on the terms and conditions set forth
herein.

       

      In
consideration of the mutual covenants and agreements herein contained, the
parties hereto covenant and agree as follows:

       

      ARTICLE
I                                

       

      

       

      GENERAL
TERMS

       

      Section
1.1 Certain
Definitions.  As used
in this Agreement, the following terms have the following meanings:

       

      "Act" has
the meaning specified in Section 11.19.

       

      "Adjusted Floating
LIBOR" means, for any day, the rate per annum equal to the sum of the
Floating LIBOR for such day plus the Applicable Floating LIBOR Margin, provided
that the Adjusted Floating LIBOR shall never exceed the Maximum
Rate.

       

      "Applicable
Floating LIBOR Margin" means one and thirty-five one hundredth percent
(1.35%) per annum.

       

      "Adjusted Tangible
Net Worth" means, as of any date, the Tangible Net Worth of the Borrower
minus
the outstanding amount of Intercompany Loans.

       

      "Affiliate"
means, as to any Person, each other Person that directly or indirectly (through
one or more intermediaries or otherwise) controls, is controlled by, or is under
common control with, such Person.

       

      "Aged Loan"
means an Eligible Mortgage Loan which has been included in the Borrowing Base
for more than sixty (60) days but less than or equal to one hundred and twenty
(120) days.

       

      "Aggregate
Commitments" means the Commitments of all Lenders, which amount shall not
exceed (a) from and including May 22, 2008 through and including
December 14, 2008, $30,000,000, (b) from and including
December 15, 2008 through and including January 15, 2009, $40,000,000,
and (c) from and including January 16, 2009 through and including
May 21, 2009, $30,000,000.

       

      "Agreement"
means this Credit Agreement, as the same may from time to time be amended,
supplemented or restated.

       

      "Agreement to
Pledge" means each agreement by the Borrower set forth in a Borrowing
Request for Wet Loans, to deliver Required Mortgage Documents to the
Administrative Agent.

       

      "Applicable
Advance Rate Percentage" means, for each
Mortgage Loan classification listed below, the percentage listed opposite such
Mortgage Loan classification:

       

      
        	
                Prime
      Loan (Dry Loan)

              	
                98%

              
	
                Prime
      Loan (Wet Loan)

              	
                98%

              
	
                Second
      Lien/HELOC Loan (Dry Loan)

              	
                90%

              
	
                Second
      Lien/HELOC Loan (Wet Loan)

              	
                90%

              
	
                Jumbo
      Loan (Dry Loan)

              	
                95%

              
	
                Jumbo
      Loan (Wet Loan)

              	
                95%

              

      

      "Applicable
Sublimit" means, for each Mortgage Loan classification listed below, the
percentage of the Aggregate Commitments listed opposite such Mortgage Loan
classification:

       

      
        	
                Wet
      Loans

              	
                35%

              
	
                Prime
      Loans

              	
                100%

              
	
                Second
      Lien/HELOC Loans

              	
                5%

              
	
                Jumbo
      Loans

              	
                10%

              

      

      provided, however, that in the
last five and first five Business Days of every calendar month the Applicable
Sublimit for Wet Loans shall be 50% of the Aggregate Commitments.

       

      "Appraised
Value" means, for any Mortgage Loan, the current appraised value of the
property secured by the Mortgage as determined by an appraisal performed in full
compliance with FNMA/FHLMC appraisal requirements and on an appraisal form
approved by FNMA or FHLMC, and performed by a state licensed or state-certified
real estate appraiser (in accordance with the provisions of Title XI of
FIRREA).

       

      "Assignee"
has the meaning specified in Section 11.10.

       

      "Borrower"
shall have the meaning assigned to such term in the preamble
hereof.

       

      "Borrowing"
means a borrowing of a new Loan.

       

      "Borrowing
Base" means at any date all Eligible Mortgage Loans which have been
delivered to and held by the Administrative Agent or otherwise identified as
Mortgage Collateral.

       

      "Borrowing Base
Certificate" means a certificate describing the Eligible Mortgage Loans
to be included in the Borrowing Base in a form acceptable to the Administrative
Agent.

       

      "Borrowing
Request" means a request, in the form of Exhibit B, for a
Loan pursuant to Article II.

       

      "Business
Day" means a day, other than a Saturday or Sunday, on which commercial
banks are open for business with the public in Dallas, Texas.  Any
Business Day in any way relating to the LIBOR must also be a day on which, in
the judgment of the Administrative Agent, significant transactions in dollars
are carried out in the interbank Eurocurrency market.

       

      "Cash
Equivalents" means (a) securities issued or directly and fully
guaranteed or insured by the United States Government or any agency or
instrumentality thereof which mature within ninety (90) days from the date of
acquisition, and (b) time deposits and certificates of deposit, which
mature within ninety (90) days from the date of acquisition, of Lender or any
other domestic commercial bank having capital and surplus in excess of
$200,000,000, which has, or the holding company of which has, a commercial paper
rating of at least A-1 or the equivalent thereof by Standard & Poors (a
division of the McGraw-Hill Companies) or P-1 or the equivalent thereof by
Moody's Investors Service, Inc.

       

      "Change in
Law" means the occurrence, after the date of this Agreement, of any of
the following:  (a) the adoption or taking effect of any law,
rule, regulation or treaty, (b) any change in any law, rule, regulation or
treaty or in the administration, interpretation or application thereof by any
Governmental Authority or (c) the making or issuance of any guideline or
directive (whether or not having the force of law) by any Governmental
Authority.

       

      "Change of
Control" means the Parent ceases to own one hundred percent (100%) of the
voting power of the voting stock of the Borrower.

       

      "CLTV"
means to any Mortgage Loan, the ratio expressed as a percentage determined by
dividing (i) the total amount owing and outstanding on all loans secured by
the residential real property and improvements serving as collateral for the
Mortgage Loan, by (ii) the Appraised Value of the residential real property
and improvements serving as collateral for the Mortgage Loan.

       

      "Code"
means the Internal Revenue Code of 1986, as amended.

       

      "Collateral"
has the meaning given to it in the Security Agreement.

       

      "Collateral Value
of the Borrowing Base" means, on any day, the sum of the Unit Collateral
Values of all Eligible Mortgage Loans included in the Borrowing Base on such day
as determined by Lender based on information then available to the
Administrative Agent.

       

      "Commitment"
means, as to each Lender, the obligation of such Lender to make Loans to the
Borrower pursuant to Section 2.1
hereof, in an aggregate principal amount at any one time outstanding not to
exceed the amount opposite such Lender's name on Schedule 1.1
hereto, as such amount may be adjusted from time to time in accordance with this
Agreement.

       

      "Commitment
Percentage" means, for each Lender as of any date, the percentage of the
Aggregate Commitments represented by such Lender's Commitment, as it may be
amended from time to time, which initially shall be set forth on Schedule 1.1.

       

      "Conforming
Loan" means a Mortgage Loan which (a) receives one of the following
responses from Fannie Mae Desktop Underwriter: (i) Approve/Eligible,
(ii) Approve/Ineligible, (iii) Refer/Eligible, or
(iv) EA-I,-II,-III/Eligible, or (b) receives one of the following
responses from Freddie Mac Loan Prospector: (i) Accept/Accept, or
(ii) A-Minus.  Mortgage Loans receiving a "Refer/Eligible"
response must be accompanied by the Investor's approval to the
exception.  Mortgage Loans receiving approval under the "Expanded
Approval" ("EA") criteria or "A-Minus" criteria are permitted only if the
Borrower provides the Administrative Agent with a copy of the Fannie Mae or
Freddie Mac contract which allows delivery by the Borrower for this loan
type.  Mortgage Loans receiving an "Approve/Ineligible" response are
permitted only if the Borrower represents and warrants to the Administrative
Agent that the Borrower possesses an agency waiver with respect to such Mortgage
Loan, thereby making such Mortgage Loan agency eligible.

       

      "Consolidated"
refers to the consolidation of any Person, in accordance with GAAP, with its
properly consolidated subsidiaries.  References herein to a Person's
Consolidated financial statements, financial position, financial condition,
liabilities, etc. refer to the consolidated financial statements, financial
position, financial condition, liabilities, etc. of such Person and its properly
consolidated subsidiaries.

       

      "Debtor
Laws" means all applicable liquidation, conservatorship, bankruptcy,
moratorium, arrangement, receivership, insolvency, reorganization or similar
Laws from time to time in effect affecting the rights of creditors generally and
general principles of equity.

       

      "Default"
means any of the events specified in Section 7.1
hereof, whether or not any requirement for notice or lapse of time or any other
condition has been satisfied.

       

      "Default
Rate" means, at the time in question, with respect to all Obligations,
the sum of (i) three percent (3%) per annum, plus (ii) the
per annum interest rate otherwise payable in respect of the Obligations;
provided that in no event shall the Default Rate ever exceed the Maximum
Rate.

       

      "Dividends,"
in respect of any corporation, means:  (a) cash distributions or
any other distributions on, or in respect of, any class of equity security of
such corporation, except for distributions made solely in shares of securities
of the same class; and (b) any and all funds, cash or other payments made
in respect of the redemption, repurchase or acquisition of such
securities.

       

      "Drawdown
Termination Date" means the earlier of May 21, 2009, or the day on
which the Note first becomes due and payable in full.

       

      "Dry Loan"
means an Eligible Mortgage Loan included in the Borrowing Base and for which the
Required Mortgage Documents have been delivered to the Administrative
Agent.

       

      "Eligible Mortgage
Loan" means a Mortgage Loan with respect to which each of the following
statements is accurate and complete (and the Borrower by including such Mortgage
Loan in any computation of the Collateral Value of the Borrowing Base shall be
deemed to so represent and warrant to the Administrative Agent at and as of the
date of such computation):

       

      (a) Such
Mortgage Loan is a binding and valid obligation of the Obligor thereon, in full
force and effect and enforceable in accordance with its terms, except as
enforceability may be limited by Debtor Laws;

       

      (b) The
Mortgage Note evidencing such Mortgage Loan is genuine in all respects as
appearing on its face and as represented in the books and records of the
Borrower, and all information set forth therein is true and
correct;

       

      (c) Such
Mortgage Loan is free of any default (other than as permitted by subparagraph (d)
below) of any party thereto (including the Borrower), counterclaims, offsets and
defenses, including the defense of usury, and from any rescission, cancellation
or avoidance, and all right thereof, whether by operation of law or
otherwise;

       

      (d) No
payment under such Mortgage Loan is more than thirty (30) days past due the
payment due date set forth in the underlying Mortgage Note and
Mortgage;

       

      (e) The
Mortgage Note evidencing such Mortgage Loan contains the entire agreement of the
parties thereto with respect to the subject matter thereof, has not been
modified or amended in any respect not expressed in writing therein and is free
of concessions or understandings with the Obligor thereon of any kind not
expressed in writing therein;

       

      (f) Such
Mortgage Loan is in all respects in accordance with all Requirements of Law
applicable thereto, including, without limitation, the federal Consumer Credit
Protection Act and the regulations promulgated thereunder and all applicable
usury Laws and restrictions, and all notices, disclosures and other statements
or information required by Law or regulation to be given, and any other act
required by Law or regulation to be performed, in connection with such Mortgage
Loan have been given and performed as required;

       

      (g) All
advance payments and other deposits on such Mortgage Loan have been paid in
cash, and no part of said sums has been loaned, directly or indirectly, by the
Borrower to the Obligor, and, other than as disclosed to Lender in writing,
there have been no prepayments;

       

      (h) Such
Mortgage Loan will be free and clear of all Liens, except Permitted
Liens;

       

      (i) The
Property covered by such Mortgage Loan is insured against loss or damage by fire
and all other hazards normally included within standard extended coverage in
accordance with the provisions of such Mortgage Loan with the Borrower named as
a loss payee thereon;

       

      (j) Such
Mortgage Loan is secured by a first Mortgage, or in the case of any Second
Lien/HELOC Loan, a second Mortgage, on Single Family property;

       

      (k) The date
of origination of such Mortgage Loan is not more than thirty (30) days prior to
the date such Mortgage Loan was first included in the Borrowing
Base;

       

      (l) Such
Mortgage Loan has not been included in the Borrowing Base for more than one
hundred and twenty (120) days;

       

      (m) If such
Mortgage Loan is included in the Borrowing Base and has been withdrawn from the
possession of the Administrative Agent on terms and subject to conditions set
forth in the Security Agreement:

       

      (i) If such
Mortgage Loan was withdrawn by the Borrower for purposes of correcting clerical
or other non-substantive documentation problems, the promissory note and other
documents relating to such Mortgage Loan are returned to the Administrative
Agent within ten (10) Business Days from the date of withdrawal; and the Unit
Collateral Value of such Mortgage Loan when added to the Unit Collateral Value
of other Mortgage Loans which have been similarly released to the Borrower and
have not been returned does not exceed ten percent (10%) of the Aggregate
Commitments;

       

      (ii) If such
Mortgage Loan was shipped by the Administrative Agent directly to a permanent
Investor for purchase or to a custodian for the formation of a pool,
(x) such Investor or custodian is in full compliance with the terms of the
bailee letter under which such Mortgage Loan was shipped, and (y) the full
purchase price for such Mortgage Loan has been received by the Administrative
Agent (or such Mortgage Loan has been returned to the Administrative Agent)
within forty-five (45) calendar days from the date of shipment by the
Administrative Agent;

       

      (n) Such
Mortgage Loan is subject to (A) a Take-Out Commitment which is in full
force and effect or (B) a Hedging Arrangement;

       

      (o) Such
Mortgage Loan conforms to and satisfies the requirements for one of the
following Mortgage Loan classifications and has been designated by the Borrower
as one (1) and only one (1) of the following:  (i) Prime Loan,
(ii) Jumbo Loan, or (iii) Second Lien/HELOC Loan; provided that, within each
Mortgage Loan classification listed above, the Unit Collateral Value of such
Mortgage Loan when added to the Unit Collateral Value of all other Mortgage
Loans in the same Mortgage Loan classification does not exceed the Applicable
Sublimit for such Mortgage Loan classification;

       

      (p) The
Required Mortgage Documents have been delivered to the Administrative Agent
prior to the inclusion of such Mortgage Loan in any computation of the Borrowing
Base or, if such items have not been delivered to the Administrative Agent on or
prior to the date such Mortgage Loan is first included in any computation of the
Borrowing Base, (a) the Borrower has pledged and agreed to deliver all
Required Mortgage Documents pursuant to a Borrowing Request delivered to the
Administrative Agent prior to such inclusion, and (b) the Unit Collateral
Value of such Mortgage Loan when added to the Unit Collateral Value of all other
Mortgage Loans for which the Administrative Agent has not received the Required
Mortgage Documents does not exceed the Applicable Sublimit for Wet Loans, provided that, all Required
Mortgage Documents with respect to such Mortgage Loan shall be delivered to the
Administrative Agent within seven (7) Business Days after the date of the
Agreement to Pledge with respect thereto;

       

      (q) The
Property covered by such Mortgage Loan is located within the fifty United
States;

       

      (r) Such
Mortgage Loan has been underwritten by the originator thereof in accordance with
such originator's then current underwriting guidelines; and

       

      (s) The
representations and warranties made by the Borrower in Section 4.23
with respect to each Mortgage Note and Mortgage Loan are true and
correct.

       

      "Environmental
Laws" means any and all Laws relating to (a) the protection of the
environment, (b) emissions, discharges or releases of pollutants,
contaminants, chemicals or hazardous or toxic substances or wastes into the
environment including ambient air, surface water, ground water or land, or
(c) the manufacture, processing, distribution, use, treatment, storage,
disposal, transport or handling of pollutants, contaminants, chemicals or
industrial, toxic or hazardous substances or wastes or the clean-up or other
remediation thereof.

       

      "ERISA"
means the Employee Retirement Income Security Act of 1974, as amended from time
to time, together with the regulations from time to time promulgated with
respect thereto.

       

      "ERISA
Affiliate" means all members of the group of corporations and trades or
businesses (whether or not incorporated) which, together with the Borrower, are
treated as a single employer under Section 414 of the Code.

       

      "ERISA
Plan" means any pension benefit plan subject to Title IV of ERISA or
Section 412 of the Code maintained or contributed to by the Borrower or any
ERISA Affiliate with respect to which the Borrower has a fixed or contingent
liability.

       

      "E-Sign
Act" means the Electronic Signatures in Global and National Commerce Act,
as amended from time to time.

       

      "Event of
Default" means any of the events specified in Section 7.1
hereof, provided that any requirement in connection with such event for the
giving of notice or the lapse of time, or the happening of any further
condition, event or act has been satisfied.

       

      "Excluded
Taxes" means, with respect to the Administrative Agent, any Lender or any
other recipient of any payment to be made by or on account of any obligation of
the Borrower hereunder, (a) taxes imposed on or measured by its overall net
income (however denominated), and franchise taxes imposed on it (in lieu of net
income taxes), by the jurisdiction (or any political subdivision thereof) under
the Laws of which such recipient is organized or in which its principal office
is located or, in the case of any Lender, in which its applicable Lending Office
is located, (b) any branch profits taxes imposed by the United States or
any similar tax imposed by any other jurisdiction in which the Borrower is
located and (c) in the case of a Foreign Lender (other than an assignee
pursuant to a request by the Borrower under Section 10.3(b)),
any withholding tax that is imposed on amounts payable to such Foreign Lender at
the time such Foreign Lender becomes a party hereto (or designates a new lending
office) or is attributable to such Foreign Lender's failure or inability (other
than as a result of a Change in Law) to comply with Section 10.1(e),
except to the extent that such Foreign Lender (or its assignor, if any) was
entitled, at the time of designation of a new lending office (or assignment), to
receive additional amounts from the Borrower with respect to such withholding
tax pursuant to Section 10.1(a).

       

      "Federal Funds
Rate" means, for any day, the rate per annum equal to the weighted
average of the rates on overnight Federal funds transactions with members of the
Federal Reserve System arranged by Federal funds brokers on such day, as
published by the Federal Reserve Bank on the Business Day next succeeding such
day; provided
that
(a) if such day is not a Business Day, the Federal Funds Rate for such day
shall be such rate on such transactions on the next preceding Business Day as so
published on the next succeeding Business Day, and (b) if no such rate is
so published on such next succeeding Business Day, the Federal Funds Rate for
such day shall be the average rate (rounded upward, if necessary, to a whole
multiple of 1/100 of 1%) charged to Guaranty Bank on such day on such
transactions as determined by the Administrative Agent.

       

      "Fee
Letter" means that certain letter agreement, dated May 22, 2008,
between the Borrower and the Administrative Agent.

       

      "FHA" means
the Federal Housing Administration or any successor thereto.

       

      "FHA Loan"
means a Mortgage Loan insured by the FHA.

       

      "FHLMC" or
"Freddie
Mac" means the Federal Home Loan Mortgage Corporation, or any successor
thereto.

       

      "Financing
Lease" means (i) any lease of Property if the then present value of
the minimum rental commitment thereunder should, in accordance with GAAP, be
capitalized on a balance sheet of the lessee, and (ii) any other lease
obligations which are capitalized on a balance sheet of the lessee.

       

      "FIRREA"
means the Financial Institutions Reform Recovery and Enforcement Act of 1989, as
amended from time to time, together with the regulations from time to time
promulgated with respect thereto.

       

      "Fiscal
Quarter" means each period of three calendar months ending March 31,
June 30, September 30 and December 31 of each year.

       

      "Fiscal
Year" means each period of twelve calendar months ending December 31
of each year.

       

      "Floating
LIBOR" means, for any day, the rate per annum (rounded upwards, if
necessary, to the nearest 1/100 of 1%) equal to the rate appearing on Bloomberg
Professional (or, if not available, any other nationally recognized trading
screen reporting the British Bankers' Association LIBOR) at 10:00 a.m.
(Central time) as the British Bankers' Association LIBOR for deposits in U.S.
Dollars with a term equivalent to one month.  In the event that such
rate does not appear on Bloomberg Professional, "Floating LIBOR" for purposes of
this definition shall be determined by reference to such other comparable
publicly available service for displaying London inter-bank offered rates as may
be selected by the Administrative Agent.

       

      "FNMA" or
"Fannie
Mae" means the Federal National Mortgage Association, or any successor
thereto.

       

      "Foreign
Lender" means any Lender that is organized under the Laws of a
jurisdiction other than that in which the Borrower is resident for tax
purposes.  For purposes of this definition, the United States, each
State thereof and the District of Columbia shall be deemed to constitute a
single jurisdiction.

       

      "Full
Documentation Mortgage Loan" means a Mortgage Loan supported by all of
the customary documentation required to underwrite the Mortgage Loan, including,
without limitation, the following:  (i) Verification of Income
("VOI"), (ii) Verification of Assets ("VOA"), and (iii) Verification
of Employment ("VOE").

       

      "Funding
Account" means the non-interest bearing demand checking account
established by the Borrower with the Administrative Agent to be used for
(a) the initial deposit of proceeds of Loans; and (b) the funding or
purchase of a Mortgage Note by the Borrower; provided that the Funding Account
shall be pledged to the Administrative Agent and that the Borrower shall not be
entitled to withdraw funds from the Funding Account.

       

      "GAAP"
means those generally accepted accounting principles and practices which are
recognized as such by the Financial Accounting Standards Board (or any generally
recognized successor) and which, in the case of the Borrower and its
consolidated subsidiaries, are applied for all periods after the date hereof in
a manner consistent with the manner in which such principles and practices were
applied to the financial statements described in Section 4.7.  If
any change in any accounting principle or practice is required by the Financial
Accounting Standards Board (or any such successor) in order for such principle
or practice to continue as a generally accepted accounting principle or
practice, all reports and financial statements required hereunder with respect
to the Borrower or the Parent may be prepared in accordance with such change,
but all calculations and determinations to be made hereunder may be made in
accordance with such change only after notice of such change is given to the
Administrative Agent and the Administrative Agent agrees to such change insofar
as it affects the accounting of the Borrower.

       

      "Governmental
Authority" means any nation or government, any agency, department, state
or other political subdivision thereof and any entity exercising executive,
legislative, judicial, regulatory or administrative functions of or pertaining
to government.

       

      "Governmental
Requirement" means any law, statute, code, ordinance, order, rule,
regulation, judgment, decree, injunction, franchise, permit, certificate,
license, authorization or other direction or requirement (including, without
limitation, any of the foregoing which relate to environmental standards or
controls, energy regulations and occupational, safety and health standards or
controls) of any arbitrator, court or other Governmental Authority, which
exercises jurisdiction over any Related Person or any of its
Property.

       

      "Guaranty
Obligation" of any Person means any contract, agreement or understanding
of such Person pursuant to which such Person guarantees, or in effect
guarantees, any Indebtedness, lease, dividends or other obligations (the "Primary
Obligations") of any other Person (the "Primary
Obligor") in any manner, whether directly or indirectly, contingently or
absolutely, in whole or in part, including without limitation
agreements:

       

      (a) to
purchase such Primary Obligation or any property constituting direct or indirect
security therefor,

       

      (b) to
advance or supply funds (A) for the purchase or payment of any such Primary
Obligation, or (B) to maintain working capital or other balance sheet
conditions of the Primary Obligor or otherwise to maintain the net worth or
solvency of the Primary Obligor,

       

      (c) to
purchase property, securities or services primarily for the purpose of assuring
the owner of any such Primary Obligation of the ability of the Primary Obligor
to make payment of such Primary Obligation; or

       

      (d) otherwise
to assure or hold harmless the owner of any such Primary Obligation against loss
in respect thereof;

       

      provided, that "Guaranty
Obligation" shall not include endorsements that are made in the ordinary
course of business of negotiable instruments or documents for deposit or
collection.  The amount of any Guaranty Obligation shall be deemed to
be the maximum amount for which the guarantor may be liable pursuant to the
agreement that governs such Guaranty Obligation, unless such maximum amount is
not stated or determinable, in which case the amount of such obligation shall be
the maximum reasonably anticipated liability thereon, as determined by such
guarantor in good faith.

       

      "Hedging
Arrangement" means any forward sales contract, forward trade contract,
interest rate swap agreement, interest rate cap agreement, or other contract
pursuant to which Borrower has protected itself from the consequences of a loss
in the value of a Mortgage Loan because of changes in interest rates or in the
market value of mortgage loan assets.

       

      "HELOC"
means home equity line of credit.

       

      "Indebtedness"
of any Person at a particular date means the sum (without duplication) at such
date of (a) all indebtedness of such Person for borrowed money or for the
deferred purchase price of property or services or which is evidenced by a note,
bond, debenture, or similar instrument, (b) all obligations of such Person
under any Financing Lease, (c) all obligations of such Person in respect of
letters of credit, acceptances, or similar obligations issued or created for the
account of such Person, (d) all Guaranty Obligations of such Person,
(e) all liabilities secured by any Lien on any property owned by such
Person, whether or not such Person has assumed or otherwise become liable for
the payment thereof, and (f) any liability of such Person in respect of
unfunded vested benefits under an ERISA Plan and (g) all liabilities of
such Person in respect of indemnities or repurchase obligations made in
connection with the sale of Mortgage Loans.

       

      "Indemnified
Party" has the meaning set forth in Section 8.1
hereof.

       

      "Indemnified
Taxes" means Taxes other than Excluded Taxes.

       

      "Intercompany
Loan" means a loan or advance from a Related Person to an Affiliate or
shareholder, member or partner of any Related Person.

       

      "Investor"
means any Person approved by the Administrative Agent and listed on Schedule 1.2, as
such Schedule may be updated or supplemented from time to time; provided, however, that the
Administrative Agent shall deliver a list of all Persons approved as Investors
by the Administrative Agent upon each amendment of such Schedule by the
Administrative Agent, and an Investor shall be removed from such list upon the
written direction of the Administrative Agent.

       

      "Investment
Property" means a Single Family dwelling which is not the Principal
Residence or Second/Vacation Property of the Obligor under the related Mortgage
Loan.

       

      "Jumbo
Loan" means a Single Family Mortgage Loan which (a) is secured by a
first-lien Mortgage Loan, (b) has an original principal balance of greater
than the current FNMA/FHLMC loan size limit but less than or equal to $750,000,
(c) has a FICO score greater than or equal to 680, (d) has a LTV less
than or equal to 80% (or 95% if subject to mortgage insurance acceptable to the
Administrative Agent), (e) has a CLTV less than or equal to 90% (or 100% if
subject to mortgage insurance acceptable to the Administrative Agent), and
(f) other than its loan size, would qualify as a Conforming
Loan.

       

      "Law" means
any statute, law, regulation, ordinance, rule, treaty, judgment, order, decree,
permit, concession, franchise, license, agreement or other governmental
restriction of the United States or any state or political subdivision
thereof.  Any reference to a Law includes any amendment or
modification to such Law, and all regulations, rulings, and other Laws
promulgated under such Law.

       

      "Lender"
and "Lenders"
have the meaning assigned to such terms in the preamble hereof.

       

      "Liabilities"
means, as to any Person as of any date, the total of all amounts which would be
properly classified as "liabilities" in a balance sheet of such Person at such
date, prepared in accordance with GAAP, consistently applied, including without
limitation, deferred income taxes, deferred compensation of any type and capital
lease obligations, if any.

       

      "Lien"
means any mortgage, pledge, hypothecation, assignment, deposit arrangement,
encumbrance, lien (whether statutory or otherwise), or preference, priority or
other security agreement or preferential arrangement of any kind or nature
whatsoever (including, without limitation, any conditional sale or other title
retention agreement, any Financing Lease having substantially the same economic
effect as any of the foregoing, and the filing of any financing statement under
the Uniform Commercial Code or comparable law of any jurisdiction in respect of
any of the foregoing).

       

      "Loan" has
the meaning given it in Section 2.1.

       

      "Loan
Balance" means for any day, the principal balance of the Loans
outstanding on such day.

       

      "Loan
Document" means any, and "Loan
Documents" shall mean all, of this Agreement, the Notes, the Security
Instruments, the Fee Letter, and any and all other agreements, certificates or
instruments now or hereafter executed and delivered by the Borrower or any other
Person in connection with, or as security for the payment or performance of any
or all of the Obligations, as any of such may be renewed, amended or
supplemented from time to time.

       

      "Loan to
Value" or "LTV"
means, as to any Mortgage Loan, the ratio expressed as a percentage determined
by dividing (a) the total principal amount owing and outstanding on the
first-lien Mortgage Loan, by (b) the Appraised Value of the residential
real property and improvements serving as collateral for the Mortgage
Loan.

       

      "Market
Value" on any day shall be determined by the Administrative Agent, in its
sole discretion, based upon (a) information then available to the
Administrative Agent regarding quotes from dealers for the purchase of mortgage
notes similar to the Mortgage Note that have been delivered to the
Administrative Agent pursuant to this Agreement or (b) sales prices
actually received by the Borrower for mortgage notes sold by the Borrower during
the immediately preceding thirty (30) day period similar to the Mortgage Note
that have been delivered to the Administrative Agent pursuant to this
Agreement.

       

      "Material Adverse
Effect" means any material adverse effect on (a) the validity or
enforceability of this Agreement, the Notes or any other Loan Document,
(b) the business, operations, total Property, prospects or condition
(financial or otherwise) of any Related Person, (c) the collateral under
any Security Instrument, or (d) the ability of any Related Person to
fulfill its obligations under this Agreement, the Notes, or any other Loan
Document to which it is a party.

       

      "Maximum
Rate" means, with respect to each Lender, the maximum nonusurious rate of
interest that such Lender is permitted under applicable Law to contract for,
take, charge, or receive with respect to its Loans.

       

      "MERS"
means Mortgage Electronic Registration Systems, Inc., a Delaware corporation, or
any successor thereto.

       

      "MERS
Agreement" means those agreements by and among the Borrower, Lender, MERS
and MERSCORP, Inc., as amended, modified, supplemented, extended, restated or
replaced from time to time.

       

      "MERS®
System" means the system of recording transfers of mortgages
electronically maintained by MERS.

       

      "MIN"
means, with respect to each Mortgage Loan, the Mortgage Identification Number
for such Mortgage Loan registered with MERS on the MERS® System.

       

      "MOM Loan"
means, with respect to any Mortgage Loan, MERS acting as the mortgagee of such
Mortgage Loan, solely as nominee for the originator or the Borrower, as the case
may be, of such Mortgage Loan and its successors and assignees.

       

      "Mortgage"
means a mortgage or deed of trust, on standard forms in form and substance
satisfactory to the Administrative Agent, securing a Mortgage Note and granting
a perfected, first or second priority lien on residential real property
consisting of land and a one-to-four-family dwelling thereon which is completed
and ready for occupancy.

       

      "Mortgage
Collateral" means all Mortgage Notes (a) which are made payable to
the order of the Borrower or have been endorsed (without restriction or
limitation) payable to the order of the Borrower, (b) in which the
Administrative Agent has been granted and continues to hold a perfected first
priority security interest, (c) which are in form and substance acceptable
to the Administrative Agent in its reasonable discretion, (d) which are
secured by Mortgages, and (e) which conform in all respects with all the
requirements for purchase of such Mortgage Note under the Take-Out Commitments
and are valid and enforceable in accordance with their respective
terms.

       

      "Mortgage
Loan" means a mortgage loan which is evidenced by a Mortgage Note and
secured by a Mortgage, together with the rights and obligations of a holder
thereof and payments thereon and proceeds therefrom.

       

      "Mortgage
Note" means the note or other evidence of indebtedness evidencing the
indebtedness of an Obligor under a Mortgage Loan.

       

      "Net
Income" of any Person means, for any period, the net income of such
Person (excluding extraordinary gains but including extraordinary losses) for
such period, calculated in accordance with GAAP.

       

      "Net Worth"
of any Person means, as of any date, an amount equal to all Consolidated assets
of such Person minus such Person's
Consolidated liabilities, each as determined in accordance with
GAAP.

       

      "Note"
means any promissory note delivered by the Borrower to any Lender pursuant to
Section 2.2 in
the form attached hereto as Exhibit A and
all renewals, modifications, amendments, restatements, and extensions
thereof.

       

      "Notice of
Assignment" has the meaning specified in Section 11.11(b)(ii).

       

      "Obligations"
means all present and future Indebtedness, obligations, and liabilities of the
Borrower to the Administrative Agent and the Lenders, and all renewals and
extensions thereof, or any part thereof, arising pursuant to this Agreement or
any other Loan Document, and all interest accrued thereon, and reasonable
attorneys' fees and other costs incurred in the drafting, negotiation,
enforcement or collection thereof, regardless of whether such Indebtedness,
obligations, and liabilities are direct, indirect, fixed, contingent, joint,
several or joint and several.

       

      "Obligor"
means the Person or Persons obligated to pay the Indebtedness which is the
subject of a Mortgage Loan.

       

      "Operating
Account" means the non-interest bearing demand checking accounts (whether
one or more) established by the Borrower with the Administrative Agent to be
used for the Borrower's operations.  Subject to the rights of the
Administrative Agent and the Lenders under Section 11.10
hereof, the Borrower shall be entitled to withdraw funds from the Operating
Account.

       

      "Other
Taxes" means all present or future stamp or documentary taxes or any
other excise or property taxes, charges or similar levies arising from any
payment made hereunder or under any other Loan Document or from the execution,
delivery or enforcement of, or otherwise with respect to, this Agreement or any
other Loan Document.

       

      "Parent"
means M/I Homes, Inc., an Ohio corporation, and owner of all of the outstanding
capital stock of the Borrower.

       

      "Parent Debt
Agreement" means that certain Second Amended and Restated Credit
Agreement, dated as of October 6, 2006, among the Parent, JPMorgan Chase
Bank, N.A., as agent, and the lenders party thereto, and all amendments,
modifications and supplements thereto and amendments and restatements thereof,
and including any subsequent credit facilities refinancing any indebtedness
thereunder.

       

      "PBGC"
means the Pension Benefit Guaranty Corporation or any Governmental Authority
succeeding to any of its functions.

       

      "Permitted
Liens" means (i) Liens in favor of the Administrative Agent to
secure the Obligations (ii) a first Lien in respect of a Second Lien/HELOC
Loan, and (iii) ad valorem taxes and assessments not yet due and
payable.

       

      "Person"
means any individual, corporation, partnership, joint venture, association,
joint stock company, limited liability company, trust, unincorporated
organization, Governmental Authority, or any other form of entity.

       

      "Prime
Loan" means a Single Family Mortgage Loan which is (a) secured by a
first-lien Mortgage and (b) a Conforming Loan, FHA Loan or VA
Loan.

       

      "Principal
Residence" means a Single Family dwelling that the Obligor occupies as
his or her primary residence.

       

      "Property"
means any interest in any kind of property or asset, whether real, personal or
mixed, or tangible or intangible.

       

      "Purchasers"
has the meaning specified in Section 11.11(b)(i).

       

      "Regulation U"
means Regulation U issued by the Board of Governors of the Federal Reserve
System as in effect from time to time.

       

      "Regulation X" means Regulation X
issued by the Board of Governors of the Federal Reserve System as in effect from
time to time.

       

      "Related
Persons" means the Borrower and each of the Borrower's
Subsidiaries.

       

      "Reportable
Event" means (1) a reportable event described in
Sections 4043(c)(5) or (6) of ERISA or the regulations promulgated
thereunder, or (2) any other reportable event described in
Section 4043(c) of ERISA or the regulations promulgated thereunder other
than a reportable event not subject to the provision for 30-day notice to the
PBGC pursuant to a waiver by the PBGC under Section 4043(a) of
ERISA.

       

      "Required
Lenders" means, at any time, the holders of 66-2/3% or more of the
Commitments, or if at any time the Commitments are terminated, the holders of
66-2/3% or more of the aggregate outstanding principal amount of all Loans;
provided, however, that if only
two Lenders hold the Commitments or 100% of the aggregate outstanding principal
amount of all Loans when the Commitments are terminated, then Required Lenders
shall mean both Lenders.

       

      "Required Mortgage
Documents" means, as to any Mortgage Loan, the items described on Schedule A to
the Security Agreement.

       

      "Requirement of
Law" as to any Person means the charter and by-laws or other
organizational or governing documents of such Person, and any law, statute,
code, ordinance, order, rule, regulation, judgment, decree, injunction,
franchise, permit, certificate, license, authorization or other determination,
direction or requirement (including, without limitation, any of the foregoing
which relate to environmental standards or controls, energy regulations and
occupational, safety and health standards or controls) of any arbitrator, court
or other Governmental Authority, in each case applicable to or binding upon such
Person or any of its Property or to which such Person or any of its Property is
subject.

       

      "Second Lien/HELOC
Loan" means a Single Family Mortgage Loan which (a) is secured by a
traditional closed-end second-lien Mortgage or an open-end HELOC Mortgage, and
in each case is a Conforming Loan, FHA Loan or VA Loan, (b) has a CLTV less
than or equal to 95%, and (c) has a principal balance not greater than the
current FNMA/FHLMC loan size limit for such Mortgages.

       

      "Second/Vacation
Property" means a Single Family dwelling that is not used for rental
purposes and that the Obligor occupies for some portion of the
year.

       

      "Security
Agreement" means the Security Agreement between the Borrower and the
Administrative Agent dated of even date herewith in substantially the form
attached as Exhibit E, as
the same may from time to time be further supplemented, amended or
restated.

       

      "Security
Instrument" means (a) the Security Agreement and (b) such other
executed documents, instruments, certificates, agreements and financing
statements as are or may be necessary to grant to the Administrative Agent a
perfected first prior and continuing security interest in and to all Mortgage
Collateral, and any and all other agreements, certificates or instruments now or
hereafter executed and delivered by the Borrower in connection with, or as
security for the payment or performance of, all or any of the Obligations,
including the Borrower's obligations under the Notes and this Agreement, as such
agreements may be amended, modified or supplemented from time to
time.

       

      "Servicing
Agreements" means all agreements between the Related Persons and Persons
other than a Related Person pursuant to which the Borrower undertakes to service
Mortgage Loans.

       

      "Servicing
Records" means all contracts and other documents, books, records and
other information (including without limitation, computer programs, tapes,
discs, punch cards, data processing software and related property and rights)
maintained with respect to the Servicing Rights.

       

      "Servicing
Rights" means all of right, title and interest of any Related Person in
and under the Servicing Agreements, including, without limitation, the rights of
the Borrower to income and reimbursement thereunder.

       

      "Settlement
Account" means the non-interest bearing demand deposit account
established by the Borrower with the Administrative Agent to be used for
(i) the deposit of proceeds from the sale of Mortgage Collateral, and
(ii) the payment of the Obligations; provided that
(a) the Settlement Account shall be pledged to the Administrative Agent for
the benefit of the Administrative Agent, and (b) the Borrower shall not be
entitled to withdraw funds from the Settlement Account.

       

      "Single
Family" means residential real property consisting of land and a
completed one-to-eight unit single family dwelling thereon (including Principal
Residences, Second/Vacation Property and Investment Property), which is fully
completed and ready for occupancy, and which is not used for commercial
purposes, is not a leasehold interest, and is not a manufactured or mobile
home.

       

      "Subsidiary"
means, with respect to any Person, any corporation, association, partnership,
joint venture, or other business or corporate entity, enterprise or organization
which is directly or indirectly (through one or more intermediaries) controlled
by or owned fifty percent (50%) or more by such Person.

       

      "Take-Out
Commitment" means with respect to any Eligible Mortgage Loan, a written
master commitment of an Investor to purchase a pool of Mortgage Loans or an
individual commitment of an Investor to purchase an individual Mortgage Loan
under which such Eligible Mortgage Loan(s) will be delivered to such Investor on
terms satisfactory to the Administrative Agent, in its reasonable
discretion.

       

      "Tangible Net
Worth" means, as of any date, for any Person, the Net Worth of such
Person minus
all Consolidated assets of such Person which would be classified as intangible
assets under GAAP, including but not limited to goodwill (whether representing
the excess cost over book value of assets acquired or otherwise), patents,
trademarks, trade names, copyrights, franchises, deferred charges, and
capitalized servicing rights.

       

      "Taxes"
means all present or future taxes, levies, imposts, duties, deductions,
withholdings, assessments, fees or other charges imposed by any Governmental
Authority, including any interest, additions to tax or penalties applicable
thereto.

       

      "Termination
Event" means (a) the occurrence with respect to any ERISA Plan of a
Reportable Event, (b) the withdrawal of the Borrower or any ERISA Affiliate
from an ERISA Plan during a plan year in which it was a "substantial employer,"
as defined in Section 4001(a)(2) of ERISA, (c) the distribution to
affected parties of a notice of intent to terminate any ERISA Plan or the
treatment of any ERISA Plan amendment as a termination under Section 4041
of ERISA, (d) the institution of proceedings to terminate any ERISA Plan by
the PBGC under Section 4042 of ERISA, or (e) any other event or
condition which might constitute grounds under Section 4042 of ERISA for
the termination of, or the appointment of a trustee to administer, any ERISA
Plan.

       

      "Total
Liabilities" of any Person means, as of any date, the sum of (a) all
Liabilities of such Person as of such date and (b) the aggregate amount of
Mortgage Loans purchased and remaining under any Mortgage Loan purchase facility
of such Person.

       

      "UCC" means
the Texas Uniform Commercial Code, as the same may hereafter be
amended.

       

      "UETA"
means the Texas Uniform Electronic Transaction Act, as amended from time to
time.

       

      "Unit Collateral
Value" means, on any day, with respect to each Eligible Mortgage Loan
included in the Borrowing Base, the Applicable Advance Rate Percentage of the
least of the following:

       

      (i) the
outstanding principal balance of the Mortgage Note constituting such Mortgage
Loan;

       

      (ii) the
actual out-of-pocket cost to the Borrower of such Mortgage Loan minus the amount
of principal paid under such Mortgage Loan and delivered to Lender for
application to the prepayment of the Loans;

       

      (iii) the
amount at which an Investor has committed to purchase the Mortgage Loan pursuant
to a Take-Out Commitment; or

       

      (iv) the
Market Value of the Mortgage Note constituting such Mortgage Loan.

       

      provided that if any such
Eligible Mortgage Loan included in the Borrowing Base becomes an Aged Loan, the
Unit Collateral Value of such Mortgage Loan as determined by the above
calculation shall be reduced by five percent (5%), and the Borrower shall
immediately, on such Eligible Mortgage Loan's sixty-first (61st) day in the
Borrowing Base, make repayment required by Section 2.5;
and

       

      provided further that if any
such Aged Loan is included in the Borrowing Base for more than ninety (90) days,
the Unit Collateral Value of such Mortgage Loan shall be reduced by an
additional ten percent (10%), and the Borrower shall immediately, on such
Eligible Mortgage Loan's ninety-first (91st) day in the Borrowing Base, make
repayment required by Section 2.5;
and

       

      provided further that no
Eligible Mortgage Loan may be included in the Borrowing Base for more than one
hundred twenty (120) days, such that on the one hundred twenty-first (121st) day
after such Eligible Mortgage Loan is first included in the Borrowing Base, the
Unit Collateral Value of such Mortgage Loan shall be reduced to zero, and the
Borrower shall immediately make repayment required by Section 2.5.

       

      "VA" means
the Veterans Administration and any successor thereto.

       

      "VA Loan"
means a Mortgage Loan guaranteed by the VA.

       

      "Wet Loan"
means an Eligible Mortgage Loan which is included in the Borrowing Base, but for
which the Required Mortgage Documents have not been delivered to
Lender.

       

      Other Definitional
Provisions.

       

      (a) Unless
otherwise specified therein, all terms defined in this Agreement shall have the
above-defined meanings when used in the Notes or any other Loan Document,
certificate, report or other document made or delivered pursuant
hereto.

       

      (b) Each term
defined in the singular form in Section 1.1
shall mean the plural thereof when the plural form of such term is used in this
Agreement, the Notes or any other Loan Document, certificate, report or other
document made or delivered pursuant hereto, and each term defined in the plural
form in Section 1.1
shall mean the singular thereof when the singular form of such term is used
herein or therein.

       

      (c) The words
"hereof," "herein," "hereunder" and similar terms when used in this Agreement
shall refer to this Agreement as a whole and not to any particular provision of
this Agreement, and section, subsection, schedule and exhibit references herein
are references to sections, subsections, schedules and exhibits to this
Agreement unless otherwise specified.  The word "or" is not exclusive,
and the word "including" (in its various forms) means "including without
limitation."

       

      (d) Unless
the context otherwise requires or unless otherwise provided herein the terms
defined in this Agreement which refer to a particular agreement, instrument or
document also refer to and include all renewals, extensions, modifications,
amendments and restatements of such agreement, instrument or document, provided that nothing
contained in this section shall be construed to authorize any such renewal,
extension, modification, amendment or restatement.

       

      (e) As used
herein, in the Notes or in any other Loan Document, certificate, report or other
document made or delivered pursuant hereto, accounting terms relating to any
Person and not specifically defined in this Agreement or therein shall have the
respective meanings given to them under GAAP.

       

      Section
1.2 Exhibits and
Schedules.  All Exhibits and Schedules attached to this
Agreement are incorporated by reference herein and made a part hereof for all
purposes.

       

      Section
1.3 Calculations and
Determinations.  All calculations under the Loan Documents of
interest and of fees shall be made on the basis of actual days elapsed
(including the first day but excluding the last) and a year of three hundred
sixty (360) days.  Each determination by Lender of amounts to be paid
hereunder shall, in the absence of manifest error, be conclusive and
binding.  Unless otherwise expressly provided herein or unless Lender
otherwise consents all financial statements and reports furnished to Lender
hereunder shall be prepared and all financial computations and determinations
pursuant hereto shall be made in accordance with GAAP.  The
Administrative Agent shall deliver to the Borrower an interest billing statement
for each month on or before the fifth (5th) day of the next succeeding month,
which interest billing statement shall set forth the interest accrued on the
Loans for such month; provided that any failure or
delay in delivering such interest billing or any inaccuracy therein shall not
affect the Obligations.

       

      ARTICLE
II                                

       

      

       

      AMOUNT
AND TERMS OF LOANS

       

      Section
2.1 Commitment and
Loans.  Subject to the terms and conditions contained in this
Agreement, each Lender severally agrees to make loans ("Loans") to
the Borrower on a revolving credit basis from time to time on any Business Day
from the date of this Agreement through the Drawdown Termination
Date.  The aggregate amount of all Loans requested in any Borrowing
Request must be equal to the lesser of (i) an amount greater than or equal
to $25,000 or (ii) an amount equal to the Aggregate Commitments less the
Loan Balance.  Notwithstanding anything to the contrary, after giving
effect to the transactions contemplated by the Borrowing Request pursuant to
which a Loan is requested, and at all other times, the aggregate unpaid
principal amount of all Loans outstanding shall not exceed the lesser of (a) the
Collateral Value of the Borrowing Base, and (b) the Aggregate
Commitments.

       

      Section
2.2 Promissory Notes; Interest
on the Notes.  The obligation of the Borrower to repay the
Loans made by the Lenders, together with interest accruing in connection
therewith, shall be evidenced by a Note payable to the order of each
Lender.  Interest on the Notes shall be due and payable as provided
herein and therein.  The entire Loan Balance and all accrued and
unpaid interest thereon shall be finally due and payable on the Drawdown
Termination Date.

       

      Section
2.3 Notice and Manner of
Obtaining Loans.  The Borrower must give written notice (which
may be sent by electronic mail) to the Administrative Agent, or telephonic
notice promptly confirmed in writing, of each request for Loans.  Each
such written request or confirmation must be made in the form and substance of
the "Borrowing Request" attached hereto as Exhibit B, duly
completed.  Each such Borrowing Request must:

       

      (a) specify
the aggregate amount of any such Borrowing of new Loans and the date on which
such Loans are to be advanced; and

       

      (b) be
received by the Administrative Agent not later than (i) 3:00 p.m.,
Central time, if there is only one Lender or (ii) 12:00 noon, Central
time, if there is more than one Lender, on the day on which any such Loans are
to be made.

       

      With each
delivery of a Borrowing Request to the Administrative Agent, the Borrower
represents and warrants to the Administrative Agent the following:

       

      (i) the
Borrower is entitled to receive the requested Loan under the terms and
conditions of this Agreement;

       

      (ii) all items
which the Borrower is required to furnish to the Administrative Agent pursuant
to this Agreement accompany the Borrowing Request (or, if Wet Loans, shall be
delivered to the Administrative Agent in accordance with the
Agreement);

       

      (iii) all
Mortgage Loans offered thereby conform in all respects with the applicable
requirements set forth in this Agreement;

       

      (iv) no Event
of Default exists under this Agreement or would result from the Borrowing or the
application of the proceeds therefrom;

       

      (v) no change
or event has occurred which with notice and/or the passage of time would
constitute an Event of Default;

       

      (vi) after
giving effect to the Loan requested thereby the Loan Balance shall not exceed
the lesser of (1) the Collateral Value of the Borrowing Base and
(2) the Aggregate Commitments; and

       

      (vii) after
giving effect to the Loans requested thereby, no Applicable Sublimit will be
exceeded.

       

      Additionally,
with each Borrowing Request, the Borrower represents and warrants that, except
as permitted under this Agreement, the Borrower holds with respect to each of
the Mortgage Notes offered the following:

       

      (i) unless
delivered therewith, a certified copy of the Mortgage relating to such Mortgage
Note;

       

      (ii) mortgagee
policies of title insurance conforming to the requirements of the Administrative
Agent or binding commitments for the issuance of same;

       

      (iii) insurance
policies insuring the mortgaged premises as required by the Administrative
Agent; and

       

      (iv) unless
delivered therewith, an original of any executed Take-Out Commitment or document
evidencing any Hedging Arrangement relating to such Mortgage Note.

       

      With the
delivery of each Borrowing Request, the Borrower agrees that it holds the above
referenced items in trust for the Administrative Agent, and will at any time
deliver the same to the Administrative Agent upon request or, upon written
instructions from the Administrative Agent, to any Person designated by the
Administrative Agent, promptly, and in any event within two (2) Business Days
after such request or instructions.  The Borrower further agrees that
it will not deliver any of the above items, nor give, transfer, or assign any
interest in same, to any Person other than the Administrative Agent (or the
Person or Persons designated by the Administrative Agent) without the prior
written consent of the Administrative Agent.

       

      Each such
telephonic request shall be deemed a representation, warranty, acknowledgment
and agreement by the Borrower as to the matters which are required to be set out
in such written confirmation.  If all conditions precedent to such
Loan have been met, the Administrative Agent will, promptly upon receipt of
funds from the Lenders, on the date remit to the Borrower the amount of such
Loan in immediately available dollars, by crediting the Funding Account with
immediately available funds in the amount of such Loan.

       

      Section
2.4 Fees.

       

      (a) In
consideration of the Lenders' commitment to make the Loans, the Borrower will
pay to the Administrative Agent for the pro rata account of each Lender a
non-refundable unused fee determined on a daily basis by applying a rate of 20.0
basis points (0.20%) per annum to the unused amount of each such Lender's
Commitment on each day during the term of the Loans.  This unused fee
shall be due and payable quarterly in arrears on the fifteenth day following
each Fiscal Quarter.

       

      (b) The
Borrower shall pay to the Administrative Agent, a collateral handling fee in the
amount and at the time set forth in the Fee Letter.

       

      Section
2.5 Mandatory
Repayments.  If at any time the Loan Balance exceeds the lesser
of (i) the Collateral Value of the Borrowing Base (as a result of an
Applicable Sublimit being exceeded or otherwise) or (ii) the Aggregate
Commitments, then the Borrower (x) shall repay the amount of such excess or
(y) so long as the Loan Balance does not exceed the Aggregate Commitments,
pledge to the Administrative Agent additional Eligible Mortgage Loans which have
an aggregate Unit Collateral Value equal to or greater than such excess, in each
case, within one (1) Business Day after written notice thereof is given by the
Administrative Agent to the Borrower; provided that, after giving
effect to any pledge of additional Eligible Mortgage Loans, the Unit Collateral
Value of such Mortgage Loans when added to the Unit Collateral Value of all
other Mortgage Loans in the same Mortgage Loan classification does not exceed
the Applicable Sublimit for such Mortgage Loan classification.

       

      Section
2.6 Payments to the
Administrative Agent.  All payments of interest on the Notes,
all payments of principal, including any principal payment made with proceeds of
Mortgage Collateral, and fees hereunder shall be made directly to the
Administrative Agent without condition or deduction or any counterclaim,
defense, recoupment, setoff, or withholding or deduction for taxes, for the pro
rata benefit of each Lender, in federal or other immediately available funds
before (a) 3:00 p.m. (Central time) if there is only one Lender and
(b) 1:00 p.m. (Central time) if there is more than one Lender, in each
case on the respective dates when due via wire transfer of immediately available
funds to the Settlement Account.  The Administrative Agent shall
promptly distribute such payments to the Lenders upon receipt in like funds as
received.  The Borrower shall send notice to the Administrative Agent
before (a) 3:00 p.m. (Central time) if there is only one Lender and
(b) 11:00 a.m. (Central time) if there is more than one Lender, in
each case on the day any payment of principal or interest is received by the
Administrative Agent which sets forth the Loans against which such payment is to
be applied.  Any payment (or any payment received without a notice
regarding application of such payment) received by the Administrative Agent
after such time will be deemed to have been made on the next following Business
Day.  Should any such payment become due and payable on a day other
than a Business Day, the maturity of such payment shall be extended to the next
succeeding Business Day, and, in the case of a payment of principal or past due
interest, interest shall accrue and be payable thereon for the period of such
extension as provided in the Loan Document under which such payment is
due.  Each payment under a Loan Document shall be payable at the place
provided therein and, if no specific place of payment is provided, shall be
payable at the place of payment of the Notes.  Prior to the occurrence
of an Event of Default and exercise of remedies by the Administrative Agent,
when the Administrative Agent collects or receives money on account of the
Obligations, the Administrative Agent shall apply all such money so distributed,
as follows:

       

      (a) first, to
any reimbursements due the Administrative Agent under Section 5.5;

       

      Section
2.8 Non-Receipt of Funds by the
Administrative Agent.

      
        (b) second,
to any reimbursement due to the Lenders under Section 5.5;

         

        (c) third,
prior to a Default or Event of Default, to the payment of the Loans then due, as
directed by the Borrower

         

        (d) fourth,
to the prepayment of principal on the Notes, together with accrued and unpaid
interest on the principal so prepaid; and

         

        (e) last, for
the payment or prepayment of any other Obligations and the balance, if any,
after all the Obligations have been indefeasibly paid in fully, to the Borrower
or as otherwise required by Law.

         

        All
payments applied to principal or interest on any Note shall be applied first to
any interest then due and payable, then to principal then due and payable, and
last to any prepayment of principal and interest.

         

        Section
2.7 Notification by the
Administrative Agent.  Promptly after receipt thereof, the
Administrative Agent will notify each Lender of the contents of each Borrowing
Request and repayment notice received by it hereunder.  Upon the
request of the Administrative Agent, not later than 2:00 p.m. (Central
time) on the day on which any Loans are to be made, each Lender shall make
available its pro rata portion of the Loan or Loans in accordance with such
Lender's Commitment in immediately available funds to the Administrative Agent
at its address specified on the Administrative Agent's signature page
hereto.

         

      

      (a) Unless
the Administrative Agent shall have been notified in writing by any Lender prior
to a Borrowing that such Lender will not make the amount that would constitute
its share of such Borrowing available to the Administrative Agent, the
Administrative Agent may assume that such Lender is making such amount available
to the Administrative Agent, and the Administrative Agent may, in its sole and
absolute discretion, in reliance upon such assumption, make available to the
Borrower a corresponding amount.  If such amount is not made available
to the Administrative Agent by the required time therefor, and Administrative
Agent elects to make such corresponding amount available to the Borrower, such
Lender shall pay to the Administrative Agent, on demand, such amount with
interest thereon, at a rate equal to the greater of the Federal Funds Rate and a
rate determined by the Administrative Agent in accordance with banking industry
rules on interbank compensation, plus any administrative, processing or similar
fees charged by the Administrative Agent in connection with the foregoing, for
the period until such Lender makes such amount immediately available to the
Administrative Agent.  A certificate of the Administrative Agent
submitted to any Lender with respect to any amounts owing under this paragraph
shall be conclusive in the absence of manifest error.  If such
Lender's share of such Borrowing is not made available to the Administrative
Agent by such Lender within three (3) Business Days after such Borrowing date,
the Administrative Agent shall also be entitled to recover such amount with
interest thereon at the rate per annum applicable to the relevant Loan, on
demand, from the Borrower.  Nothing in this Section shall be deemed to
limit the rights of the Borrower against any such Lender.

       

      (b) Unless
the Administrative Agent shall have been notified in writing by the Borrower
prior to the date of any payment due to be made by the Borrower hereunder that
the Borrower will not make such payment to the Administrative Agent (including
but not limited to situations in which the Borrower informs the Administrative
Agent that the Administrative Agent will be receiving proceeds of Collateral on
a specific date and that the Borrower intends to use such proceeds to make a
payment of principal), the Administrative Agent may assume that the Borrower is
making such payment, and the Administrative Agent may, but shall not be required
to, in reliance upon such assumption, make available to the Lenders their
respective pro rata
shares of a corresponding amount.  If such payment is not made to the
Administrative Agent by the Borrower within three (3) Business Days after such
due date, the Administrative Agent shall be entitled to recover, on demand, from
each Lender to which any amount which was made available pursuant to the
preceding sentence, such amount with interest thereon at the rate per annum
equal to the greater of the Federal Funds Rate and a rate determined by the
Administrative Agent in accordance with banking industry rules on interbank
compensation, plus administrative, processing or similar fees charged by the
Administrative Agent in connection with the foregoing.  Nothing in
this Section shall be deemed to limit the rights of the Administrative Agent or
any Lender against the Borrower.

       

      Section
2.9 Increased Cost and Reduced
Return.

       

      (a) If, after
the date hereof, any Lender shall have determined that the adoption of any
applicable Law, rule, or regulation regarding capital adequacy or any change
therein or in the interpretation or administration thereof by any Governmental
Authority, central bank, or comparable agency charged with the interpretation or
administration thereof, or any request or directive regarding capital adequacy
(whether or not having the force of Law) of any such Governmental Authority,
central bank, or comparable agency, has or would have the effect of reducing the
rate of return on the capital of such Lender or any corporation controlling such
Lender, due to the obligations of such Lender hereunder, to a level below that
which such Lender or such corporation could have achieved but for such adoption,
change, request, or directive (taking into consideration its policies with
respect to capital adequacy), then, within fifteen (15) days after demand by
such Lender, the Borrower shall pay to such Lender such additional amount or
amounts as will compensate such Lender for such reduction, but only to the
extent that such Lender has not been compensated therefor by any increase in the
LIBOR.

       

      (b) Each
Lender shall promptly notify the Borrower of any event of which it has
knowledge, occurring after the date hereof, which will entitle such Lender to
compensation pursuant to this Section.  In the event that any Lender
claims compensation under this Section, such Lender shall furnish to the
Borrower a statement setting forth the additional amount or amounts to be paid
to it hereunder which shall be conclusive in the absence of manifest
error.  In determining such amount, such Lender shall act in good
faith and may use any reasonable averaging and attribution methods.

       

      Section
2.10 Settlement
Account.  The Borrower shall not be entitled to withdraw funds
from the Settlement Account.  Except upon the occurrence of any Event
of Default, to the extent that on any Business Day amounts in the Settlement
Account exceed the amount needed in order to maintain the Collateral Value of
the Borrowing Base at an amount equal to or greater than the amount of the Loan
Balance, the Administrative Agent shall cause such excess amount to be
automatically transferred to any Operating Account designated by the Borrower or
as the Borrower may otherwise direct the application of such excess
amount.  If on any Business Day the amount in the Settlement Account
is less than the amount needed to maintain the Collateral Value of the Borrowing
Base in an amount equal to or greater than the amount of the Loan Balance, and
the Borrower has not made any payment as provided in Section 2.5, the
Administrative Agent may cause an amount equal to such deficiency to be
transferred from any Operating Account to the Settlement Account.

       

      ARTICLE
III                                

       

      

       

      CONDITIONS
PRECEDENT

       

      The
obligation of the Lenders to make Loans hereunder is subject to fulfillment of
the conditions precedent stated in this Article
III.

       

      Section
3.1 Initial
Loan.  The obligation of the Lenders to fund any Loan hereunder
shall be subject to, in addition to the conditions precedent specified in Section 3.2, the
following terms and conditions:

       

      (a) The
Borrower shall have delivered to the Administrative Agent the following (each of
the following documents being duly executed and delivered and in form and
substance satisfactory to each Lender, and, with the exception of the Notes,
each in a sufficient number of originals that each Lender, the Administrative
Agent and its counsel may have an executed original of each
document):

       

      (i) an
executed counterpart of this Agreement and of all instruments, certificates and
opinions referred to in this Article III not
theretofore delivered (except the Borrowing Request which is to be delivered at
the time provided in Subsection 3.2(a)
hereof);

       

      (ii) a Note
for each Lender;

       

      (iii) the
Security Agreement dated of even date herewith;

       

      (iv) a
certificate of the Secretary or Assistant Secretary of the Borrower setting
forth (i) resolutions of its board of directors authorizing the execution,
delivery, and performance of the Loan Documents to which it is a party and
identifying the officers authorized to sign such instruments, (ii) specimen
signatures of the officers so authorized, and (iii) articles of
incorporation of the Borrower certified by the appropriate Secretary of State as
of a recent date, and (iv) code of regulations of the Borrower, certified
as being accurate and complete;

       

      (v) a
certificate of the existence and good standing for the Borrower in its state of
incorporation or organization dated no earlier than fifteen days prior to the
date hereof;

       

      (vi) an
opinion of counsel for the Borrower in form and substance satisfactory to the
Administrative Agent;

       

      (vii) a
Borrowing Request and a Borrowing Base Certificate dated as of the date of the
first Loan, certified by the Chief Executive Officer, President, Secretary,
Chief Financial Officer or Treasurer of the Borrower;

       

      (viii) a copy of
the MERS Agreement, duly executed by the Borrower; and

       

      (ix) such
other documents, instruments, certificates and agreements (including, without
limitation, UCC tax and lien search results) as the Administrative Agent or its
legal counsel may reasonably request at any time at or prior to the date of the
initial Loan hereunder.

       

      (b) No
Person, other than the Administrative Agent, holds any mortgage, pledge, lien,
security interest or other charge or encumbrance in, against or to any of the
Mortgage Loans identified by the Borrower as Mortgage Collateral or included in
any computation of the Collateral Value of the Borrowing Base.

       

      (c) The
Administrative Agent shall have received evidence satisfactory to it that all
filings and other actions necessary or desirable to perfect and protect the
Liens created by the Security Instruments shall have been completed (including,
without limitation, the filing of financing statements on form UCC-1 and filing
of UCC-3 amendments or termination statements).

       

      (d) The
Borrower shall have paid all fees and reimbursements to be paid to the
Administrative Agent pursuant to any Loan Document, the Fee Letter, or otherwise
due the Administrative Agent and including reasonable fees (not to exceed the
amount set forth in the Fee Letter) and expenses of the Administrative Agent's
attorneys.

       

      Section
3.2 All
Loans.  The obligation of the Lenders to fund any Loan pursuant
to this Agreement is subject to the following further conditions
precedent:

       

      (a) the
Borrower shall have delivered to the Administrative Agent a Borrowing Request
dated as of the date of such Loan, certified by the Chief Executive Officer,
President, Secretary, Chief Financial Officer or Treasurer of the Borrower, and
the Required Mortgage Documents for all Eligible Mortgage Loans other than Wet
Loans;

       

      (b) all other
Property in which the Borrower has granted a Lien to the Administrative Agent,
for the benefit of the Lenders, shall have been physically delivered to the
possession of the Administrative Agent, to the extent required to be so
delivered under the Loan Documents, and the Administrative Agent has a valid and
perfected first lien on such Property, for the benefit of the
Lenders;

       

      (c) the
representations and warranties of each Related Person contained in this
Agreement or any Security Instrument (other than those representations and
warranties which are by their terms expressly limited to the date of this
Agreement) shall be true and correct in all material respects on and as of the
date of such Loan, as though made on and as of such date, both before and after
giving effect to the Borrowing and the application of the proceeds
thereof;

       

      (d) no
Default or Event of Default shall have occurred and be continuing or would
result from such Borrowing or the application of the proceeds
therefrom;

       

      (e) no change
or event which constitutes a Material Adverse Effect shall have occurred and be
continuing as of the date of such Loan;

       

      (f) the
Funding Account, the Settlement Account and the Operating Account shall be
established and in existence;

       

      (g) the
making of such Loan shall not be prohibited by any Governmental Requirement or
contravene or conflict with any Requirement of Law;

       

      (h) the
delivery to the Administrative Agent of such other documents, instruments,
certificates, agreements and opinions of counsel, including such documents,
agreements, certificates and instruments as may be necessary or desirable to
perfect, preserve or protect the priority of any Lien granted or intended to be
granted hereunder or otherwise and including favorable written opinions of
counsel with respect thereto, as the Administrative Agent may reasonably
request; and

       

      (i) No
Person, other than the Administrative Agent, shall be listed in the field
designated "interim funder" on the MERS® System with respect to any Mortgage
Loans identified by the Borrower as Mortgage Collateral or included in any
computation of the Collateral Value of the Borrowing Base.

       

      Delivery
to the Administrative Agent of a Borrowing Request shall be deemed to constitute
a representation and warranty by the Borrower on the date thereof and on the
date on which the Loan is made of the facts specified in subsections (c)
and (d) of this
Section.

       

      ARTICLE
IV                                

       

      

       

      BORROWER
REPRESENTATIONS AND WARRANTIES

       

      The
Borrower represents and warrants as follows:

       

      Section
4.1 Organization and Good
Standing.  Each Related Person (a) is a corporation,
limited liability company or limited partnership duly incorporated or organized
and existing in good standing under the Laws of the jurisdiction of its
incorporation or organization, (b) is duly qualified as a foreign entity
and in good standing in all jurisdictions in which its failure to be so
qualified could have a Material Adverse Effect, (c) has the corporate or
organizational power and authority to own its properties and assets and to
transact the business in which it is engaged and is or will be qualified in
those states wherein it proposes to transact business in the future, and
(d) is in compliance with all Requirements of Law except to the extent that
the failure to comply therewith could not, in the aggregate, have a Material
Adverse Effect.

       

      Section
4.2 Authorization and
Power.  Each Related Person has the corporate or organizational
power and requisite authority to execute, deliver and perform the Loan Documents
to which it is a party; each Related Person is duly authorized to and has taken
all action necessary to authorize it to, execute, deliver and perform the Loan
Documents to which it is a party and is and will continue to be duly authorized
to perform such Loan Documents.

       

      Section
4.3 No Conflicts or
Consents.  Neither the execution and delivery by any Related
Person of the Loan Documents to which it is a party, nor the consummation of any
of the transactions herein or therein contemplated, nor compliance with the
terms and provisions hereof or with the terms and provisions thereof, will
(a) materially contravene or conflict with any Requirement of Law to which
any Related Person is subject, or any indenture, mortgage, deed of trust, or
other agreement or instrument to which any Related Person is a party or by which
any Related Person may be bound, or to which the Property of any Related Person
may be subject, or (b) result in the creation or imposition of any Lien,
other than the Lien of the Security Agreement, on the Property of any Related
Person.  All actions, approvals, consents, waivers, exemptions,
variances, franchises, orders, permits, authorizations, rights and licenses
required to be taken, given or obtained, as the case may be, from any
Governmental Authority that are necessary in connection with the transactions
contemplated by the Loan Documents have been obtained.

       

      Section
4.4 Enforceable
Obligations.  This Agreement, the Notes, and the other Loan
Documents to which any Related Person is a party are the legal, valid and
binding obligations of such Related Person, enforceable in accordance with their
respective terms, except as limited by Debtor Laws.

       

      Section
4.5 Priority of
Liens.  Upon delivery to the Administrative Agent of each
Borrowing Request, the Administrative Agent shall have valid, enforceable,
perfected, first priority Liens and security interests in each Mortgage Note
identified therein.

       

      Section
4.6 No
Liens.  The Borrower has good and indefeasible title to the
Mortgage Collateral free and clear of all Liens and other adverse claims of any
nature, except for Permitted Liens.

       

      Section
4.7 Financial Condition of the
Borrower.  The Borrower has delivered to the Lenders copies of
its annual audited balance sheet as of December 31, 2007, and the related
statements of income, stockholders' equity and cash flows for the period ended
such date; such financial statements fairly present the financial condition of
the Borrower as of such date and the results of operations of the Borrower for
the period ended on such date and have been prepared in accordance with GAAP,
subject to normal year-end adjustments; as of the date thereof, there were no
obligations, liabilities or Indebtedness (including material contingent and
indirect liabilities and obligations or unusual forward or long-term
commitments) of the Borrower which are not reflected in such financial
statements and no change which constitutes a Material Adverse Effect has
occurred in the financial condition or business of the Borrower since
December 31, 2007.  The Borrower has also delivered to the
Lenders its unaudited quarterly balance sheet for the period ending
March 31, 2008 and management reports for March 31, 2008; such reports
fairly and accurately present the Borrower's commitment position, pipeline
position, servicing and production as of the end of such months and for the
fiscal year to date for the periods ending on such dates.

       

      Section
4.8 Full
Disclosure.  There is no material fact that the Borrower has
not disclosed to Lender which could have a Material Adverse
Effect.  None of (i) the financial statements referred to in
Section 4.7
hereof, (ii) any Borrowing Request or officer's certificate, or
(iii) any statement delivered by any Related Person to the Administrative
Agent in connection with this Agreement, contains any untrue statement of
material fact.

       

      Section
4.9 No
Default.  No Related Person is in default under any material
loan agreement, mortgage, security agreement or other material agreement or
obligation to which it is a party or by which any of its Property is
bound.

       

      Section
4.10 No
Litigation.  There are no material actions, suits or legal,
equitable, arbitration or administrative proceedings pending, or to the
knowledge of the Borrower threatened, against any Related Person the adverse
determination of which could constitute a Material Adverse Effect.

       

      Section
4.11 Taxes.  All
tax returns required to be filed by each Related Person in any jurisdiction have
been filed and all taxes, assessments, fees and other governmental charges upon
each Related Person or upon any of its properties, income or franchises have
been paid prior to the time that such taxes could give rise to a Lien thereon,
unless protested in good faith by appropriate proceedings and with respect to
which reserves in conformity with GAAP have been established on the books of
such Related Person.  No Related Person has any knowledge of any
proposed tax assessment against any Related Person.

       

      Section
4.12 Principal Office,
etc.  The principal office, chief executive office and
principal place of business of the Borrower is at the address set forth on the
Borrower's signature page hereto or in a written notice given pursuant to Section 6.12.

       

      Section
4.13 Compliance with
ERISA.  No Related Person currently maintains, contributes to,
is required to contribute to or has any liability, whether absolute or
contingent, with respect to an ERISA Plan.  With respect to all other
employee benefit plans maintained or contributed to by each Related Person, each
Related Person is in material compliance with ERISA.

       

      Section
4.14 Subsidiaries.  No
Related Person presently has any Subsidiary or owns any stock in any other
corporation or association except those listed in Schedule 4.14.  As
of the date hereof, each Related Person owns, directly or indirectly, the equity
interest in each of its Subsidiaries which is indicated in such
exhibit.

       

      Section
4.15 Indebtedness.  No
Related Person has any indebtedness outstanding other than the Indebtedness
permitted by Section 6.2.

       

      Section
4.16 Permits, Patents,
Trademarks, etc.

       

      (a) Each
Related Person has all permits and licenses necessary for the operation of its
business.

       

      (b) Each
Related Person owns or possesses (or is licensed or otherwise has the necessary
right to use) all patents, trademarks, service marks, trade names and
copyrights, technology, know-how and processes, and all rights with respect to
the foregoing, which are necessary for the operation of its business, without
any known material conflict with the rights of others.  The
consummation of the transactions contemplated hereby will not alter or impair in
any material respect any of such rights of each Related Person.

       

      Section
4.17 Status Under Certain Federal
Statutes.  No Related Person is (a) a "public utility," as
such term is defined in the Federal Power Act, as amended, (b) an
"investment company," or a company "controlled" by an "investment company,"
within the meaning of the Investment Company Act of 1949, as amended or
(c) a "rail carrier," or a "person controlled by or affiliated with a rail
carrier," within the meaning of Title 49, U.S.C., and no Related Person is
a "carrier" to which 49 U.S.C. §l1301(b)(1) is applicable.

       

      Section
4.18 Securities
Act.  No Related Person has issued any unregistered securities
in violation of the registration requirements of the Securities Act of 1933, as
amended, or of any other Requirement of Law, and is not violating any rule,
regulation, or requirement under the Securities Act of 1933, as amended, or the
Securities and Exchange Act of 1934, as amended.  No Related Person is
required to qualify an indenture under the Trust Indenture Act of 1939, as
amended, in connection with its execution and delivery of the
Notes.

       

      Section
4.19 No Approvals
Required.  Other than consents and approvals previously
obtained and actions previously taken, neither the execution and delivery of
this Agreement, the Notes and the other Loan Documents to which any Related
Person is a party, nor the consummation of any of the transactions contemplated
hereby or thereby requires the consent or approval of, the giving of notice to,
or the registration, recording or filing by any Related Person of any document
with, or the taking of any other action in respect of, any Governmental
Authority which has jurisdiction over each Related Person or any of its
Property, except for (a) the filing of the Uniform Commercial Code
financing statements and other similar filings to perfect the interest of the
Lenders in the Collateral, and (b) such other consents, approvals, notices,
registrations, filings or action as may be required in the ordinary course of
business of the Related Persons in connection with the performance of the
obligations of the Related Persons hereunder.

       

      Section
4.20 Survival of
Representations.  All representations and warranties by the
Borrower herein shall survive the execution and delivery of this Agreement, the
Notes, the other Loan Documents and the funding of the Loans, and any
investigation at any time made by or on behalf of Lender shall not diminish the
right of Lender to rely thereon.

       

      Section
4.21 Compliance with
Laws.  Each Related Person is in compliance in all material
respects with the requirements of all Laws and all orders, writs, injunctions
and decrees applicable to it or to its business or property, including ERISA and
FIRREA, except in such instances in which (a) such requirement of Law or
order, writ, injunction or decree is being contested in good faith by
appropriate proceedings diligently conducted; or (b) the failure to comply
therewith would not likely be expected to have a Material Adverse
Effect.

       

      Section
4.22 Payment of
Obligations.  No Related Person is in default in the payment
and discharge of its material obligations and liabilities, including all tax
liabilities, assessments and governmental charges or levies upon it or its
properties or assets, unless the same are being contested in good faith by
appropriate proceedings diligently conducted and adequate reserves in accordance
with GAAP are being maintained by the Borrower.

       

      Section
4.23 Individual Mortgage
Loans.  The Borrower hereby represents with respect to each
Mortgage Note and Mortgage Loan that is part of the Collateral:

       

      (a) The
Borrower has good and marketable title to each Mortgage Note and Mortgage, was
the sole owner thereof and had full right to pledge the Mortgage Loan to Lender
free and clear of any Lien other than Permitted Liens;

       

      (b) To the
knowledge of the Borrower, there is no default, breach, violation or event of
acceleration existing under any Mortgage or the related Mortgage Note and there
is no event which, with the passage of time or with notice and/or the expiration
of any grace or cure period, would constitute a default, breach, violation or
event of acceleration and no such default, breach, violation or event of
acceleration has been waived;

       

      (c) To the
knowledge of the Borrower, the physical condition of the Property subject to the
Mortgage has not deteriorated since the date of origination of the related
secured Mortgage Loan (normal wear and tear excepted) and there is no proceeding
pending for the total or partial condemnation of any Mortgaged
Property;

       

      (d) Each
Mortgage contains customary and enforceable provisions such as to render the
rights and remedies of the holder thereof adequate for the realization against
the related Property subject to the Mortgage of the benefits of the security
provided thereby, including, (i) in the case of a Mortgage designated as a
deed of trust, by trustee's sale, and (ii) otherwise, by judicial
foreclosure;

       

      (e) Each
Mortgage Loan is a first lien or second lien Single Family loan, and has been
underwritten by the originator thereof in accordance with such originator's then
current underwriting guidelines; provided that (i) the
aggregate amount of Second Lien/HELOC Loans does not exceed the Applicable
Sublimit for Second Lien/HELOC Loans, (ii) the aggregate amount of all Wet
Loans does not exceed the Applicable Sublimit for Wet Loans, and (iii) the
aggregate amount of Jumbo Loans does not exceed the Applicable Sublimit for
Jumbo Loans;

       

      (f) Each
Mortgage Note is either (i) payable in monthly installments of principal
and interest, with interest payable in arrears, and requires a monthly payment
which is sufficient to amortize the original principal balance over the original
term, not to exceed thirty (30) years, and to pay interest at the related
interest rate, or (ii) payable in monthly installments of interest only,
with interest payable in arrears, with principal payments to begin no later than
ten (10) years from closing with payments which are sufficient to fully amortize
the original principal balance over a period not to exceed thirty (30) years;
and no Mortgage Note provides for any extension of the original
term;

       

      (g) No
Mortgage Loan is a loan in respect of either the purchase of a manufactured home
or mobile home or the purchase of the land on which a manufactured home or
mobile home will be placed;

       

      (h) The
origination practices used by the originator of the Mortgage Loans and the
collection practices used by the Borrower with respect to each Mortgage Loan
have been in all material respects legal, proper, prudent and customary in the
loan origination and servicing business;

       

      (i) Each
Mortgage Loan was originated in material compliance with all applicable Laws
and, to the best of the Borrower's knowledge, no fraud or misrepresentation was
committed by any Person in connection therewith; and

       

      (j) For each
Mortgage Loan, the Borrower has obtained closing protection letters from the
underwriter for the respective title insurance policy.

       

      Section
4.24 Environmental
Matters.  In the ordinary course of each Related Person's
business, the officers and managers of each Related Person consider the effect
of Environmental Laws on the business of such Related Person, in the course of
which they identify and evaluate potential risks and liabilities accruing to
such Related Person due to Environmental Laws.  On the basis of this
consideration, each Related Person has reasonably concluded that neither
violation of nor compliance with Environmental Laws can reasonably be expected
to have a Material Adverse Effect on the business or financial condition of such
Related Person or on the ability of the Borrower to perform the
Obligations.  No Related Person has received any notice to the effect
that its operations are not in material compliance with any of the requirements
of applicable Environmental Laws or are the subject of any federal or state
investigation evaluating whether any remedial action is needed to respond to a
release of any toxic or hazardous waste or substance into the environment, which
non-compliance or remedial action could reasonably be expected to have a
Material Adverse Effect on the business or financial condition of the Related
Persons, taken as a whole, or on the ability of the Borrower to perform the
Obligations.

       

      Section
4.25 Status as Approved
Seller/Servicer.  The Borrower is an approved Seller/Servicer
for FNMA and FHLMC in good standing and is an approved lender with FHA, VA and
HUD.

       

      Section
4.26 Regulation U.  The
Borrower has not, directly or indirectly, used any of the proceeds of the Loans
for the purpose, whether immediate, incidental or ultimate, of buying any
"margin stock" or of maintaining, reducing or retiring any Indebtedness
originally incurred to purchase a stock that is currently any "margin stock," or
for any other purpose which might constitute this transaction a "purpose
credit," in each case within the meaning of Regulation U, or otherwise
taken or permitted to be taken any action which would involve a violation of
Regulation U or of Regulation T (12 C.F.R. 220, as amended)
or Regulation X (12 C.F.R. 224, as amended) or any other
regulation of such board.

       

      ARTICLE
V                                

       

      

       

      AFFIRMATIVE
COVENANTS

       

      Each
Related Person shall at all times comply with (or cause compliances with) the
covenants contained in this Article V, from
the date hereof and for so long as any part of the Obligations or the
Commitments are outstanding unless the Required Lenders have agreed
otherwise.

       

      Section
5.1 Financial Statements and
Reports.

       

      (a) The
Borrower shall furnish to the Administrative Agent the following, all in form
and detail reasonably satisfactory to the Administrative Agent:

       

      (i) Promptly
after becoming available, and in any event within ninety (90) days after the
close of each Fiscal Year, the Borrower's audited Consolidated balance sheet as
of the end of such Fiscal Year, and the related audited Consolidated statements
of income, stockholders' equity and cash flows of the Borrower for such Fiscal
Year, setting forth in each case in comparative form the corresponding figures
for the preceding Fiscal Year.  Such financial statements shall be
unqualified and shall be accompanied by the related audit report of independent
certified public accountants acceptable to the Administrative Agent which report
shall be to the effect that such statements have been prepared in accordance
with GAAP applied on a basis consistent with prior periods except for such
changes in such principles with which the independent public accountants shall
have concurred;

       

      (ii) Promptly
after becoming available, and in any event within ninety (90) days after the
close of each Fiscal Year, the Parent's audited Consolidated and consolidating
balance sheet as of the end of such Fiscal Year, and the related audited
Consolidated and consolidating statements of income, stockholders' equity and
cash flows of the Parent for such Fiscal Year, setting forth in each case in
comparative form the corresponding figures for the preceding Fiscal Year, such
financial statements shall be unqualified and shall be accompanied by the
related audit report of independent certified public accountants acceptable to
the Administrative Agent which report shall be to the effect that such
statements have been prepared in accordance with GAAP applied on a basis
consistent with prior periods except for such changes in such principles with
which the independent public accountants shall have concurred;

       

      (iii) Promptly
after becoming available, and in any event within forty-five (45) days after the
end of each Fiscal Quarter (excluding the fourth Fiscal Quarter in each Fiscal
Year), a Consolidated balance sheet of the Parent as of the end of such Fiscal
Quarter and the related Consolidated statements of income, stockholders' equity
and cash flows of the Parent for such Fiscal Quarter and the period from the
first day of the then current Fiscal Year through the end of such Fiscal
Quarter, certified by the chief financial officer or other executive officer of
the Parent to have been prepared in accordance with GAAP applied on a basis
consistent with prior periods;

       

      (iv) Promptly
after becoming available, and in any event within forty-five (45) days after the
end of each calendar month, including the twelfth calendar month in each Fiscal
Year, a Consolidated and consolidating balance sheet of the Borrower as of the
end of such month and the related Consolidated and consolidating statements of
income, stockholders' equity and cash flows of the Borrower for such month and
the period from the first day of the then current Fiscal Year through the end of
such month, certified by the chief financial officer or other executive officer
of the Borrower to have been prepared in accordance with GAAP applied on a basis
consistent with prior periods;

       

      (v) Promptly
and in any event within forty-five (45) days after the end of each calendar
month in each Fiscal Year of the Borrower, and within fifteen (15) days after
the completion of each year end audit by the Borrower's independent public
accountants, a completed Officer's Certificate in the form of Exhibit C
attached hereto, executed by the president or chief financial officer of the
Borrower;

       

      (vi) Promptly
and in any event within ninety (90) days of the beginning of each Fiscal Year,
an annual operating budget of the Borrower for such Fiscal Year, in form and
substance reasonably satisfactory to the Administrative Agent;

       

      (vii) Promptly
and in any event within forty-five (45) days after the end of each calendar
month, a monthly pipeline report in form and substance reasonably satisfactory
to the Administrative Agent;

       

      (viii) Promptly
and in any event within forty-five (45) days after the end of each Fiscal
Quarter, a mortgage loan production report as of the end of such Fiscal Quarter,
reflecting the Borrower's Mortgage Loan production and acquisition volumes
during such Fiscal Quarter, and such other similar information as reasonably
requested by the Administrative Agent to be in such report;

       

      (ix) Promptly
and in any event within forty-five (45) days after the end of each calendar
month, or more frequently as requested by the Administrative Agent, a hedging
coverage report showing, in detail and form reasonably satisfactory to the
Administrative Agent, the Borrower's hedging coverage of all Eligible Mortgage
Loans subject to a Hedging Arrangement;

       

      (x) Within
forty-five (45) days after the end of each calendar month, a Borrowing Base
Certificate;

       

      (xi) Promptly
upon receipt thereof, a copy of each other report submitted to the Borrower by
independent accountants in connection with any annual, interim or special audit
of the books of the Borrower; and

       

      (xii) Such
other information concerning the business, properties or financial condition of
any Related Person as the Administrative Agent or any Lender may reasonably
request.

       

      Section
5.2 Taxes and Other
Liens.  Each Related Person shall pay and discharge promptly
all taxes, assessments and governmental charges or levies imposed upon it or
upon its income or upon any of its Property as well as all claims of any kind
(including claims for labor, materials, supplies and rent) which, if unpaid,
might become a Lien upon any or all of its Property; provided, however, each Related
Person shall not be required to pay any such tax, assessment, charge, levy or
claim if the amount, applicability or validity thereof shall currently be
contested in good faith by appropriate proceedings diligently conducted by or on
behalf of such Related Person and if such Related Person shall have set up
reserves therefor adequate under GAAP.

       

      Section
5.3 Maintenance.  Each
Related Person shall (a) maintain its corporate or partnership existence,
rights and franchises (provided that (i) with the consent of the Lender
(which consent shall not be unreasonably withheld or delayed), the Borrower may
elect to convert to a limited liability company if Parent is the sole member of
such limited liability company, and (ii) the Borrower may discontinue the
existence of any of its Subsidiaries that the Borrower in good faith determines
are no longer necessary for the business and operations of the Borrower and its
other Subsidiaries); (b) observe and comply in all material respects with
all Governmental Requirements, and (c) maintain its Properties (and any
Properties leased by or consigned to it or held under title retention or
conditional sales contracts) in good and workable condition at all times and
make all repairs, replacements, additions, betterments and improvements to its
Properties as are needed and proper so that the business carried on in
connection therewith may be conducted properly and efficiently at all
times.  The Borrower shall maintain good standing as an approved
seller and servicer for FNMA and FHLMC and as an approved lender with FHA, VA
and HUD.

       

      Section
5.4 Further
Assurances.  The Borrower shall, within three (3) Business Days
after the request of the Administrative Agent or any Lender, cure any defects in
the execution and delivery of the Notes, this Agreement or any other Loan
Document and each Related Person shall, at its expense, promptly execute and
deliver to Lender upon request all such other and further documents, agreements
and instruments in compliance with or accomplishment of the covenants and
agreements of each Related Person in this Agreement and in the other Loan
Documents or to further evidence and more fully describe the collateral intended
as security for the Notes, or to correct any omissions in this Agreement or the
other Loan Documents, or more fully to state the security for the obligations
set out herein or in any of the other Loan Documents, or to make any recordings,
to file any notices, or obtain any consents.

       

      Section
5.5 Reimbursement of
Expenses.  The Borrower shall pay (a) all reasonable legal
fees incurred by the Administrative Agent in connection with the preparation,
negotiation, syndication, execution and delivery of this Agreement, the Note and
the other Loan Documents (subject to the limitation on legal fees set forth in
the Fee Letter) and any amendments, consents or waivers executed in connection
therewith, (b) all fees, charges or taxes for the recording or filing of
the Security Instruments, (c) all reasonable out-of-pocket expenses of the
Administrative Agent in connection with the administration of this Agreement,
the Notes and the other Loan Documents, including courier expenses incurred in
connection with the Mortgage Collateral, (d) all amounts expended, advanced
or incurred by the Administrative Agent to satisfy any obligation of the
Borrower under this Agreement or any of the other Loan Documents or to collect
the Notes, or to protect, preserve, exercise or enforce the rights of the
Lenders under this Agreement or any of the other Loan Documents, (e) all
reasonable out-of-pocket costs and expenses (including fees and expenses of
attorneys and other experts employed or retained by the Administrative Agent or
any Lender) incurred in connection with, arising out of, or in any way related
to (i) consulting during a Default with respect to (A) the protection,
preservation, exercise or enforcement of any of its rights in, under or related
to the Collateral or the Loan Documents or (B) the performance of any of
its obligations under or related to the Loan Documents, or (ii) protecting,
preserving, exercising or enforcing during a Default any of its rights in, under
or related to the Collateral or the Loan Documents, each of (a) through (e)
shall include all underwriting expenses, collateral liquidation costs, court
costs, attorneys' fees (including, without limitation, for trial, appeal or
other proceedings), fees of auditors and accountants, and investigation expenses
reasonably incurred by the Administrative Agent or any Lender in connection with
any such matters, together with interest at the post-maturity rate specified in
the Notes on each item specified in clauses (a) through (e) from thirty
(30) days after the date of written demand or request for reimbursement until
the date of reimbursement.  Provided, however, that neither
the Administrative Agent nor any Lender shall be entitled to any reimbursement
under clauses (d) and (e) above if there is a determination in a final,
non-appealable judgment by a court of competent jurisdiction that the
Administrative Agent or such Lender was not entitled to exercise such remedies
under the Loan Documents.

       

      Section
5.6 Insurance.  Each
Related Person shall maintain with financially sound and reputable insurers,
insurance with respect to its Properties and business against such liabilities,
casualties, risks and contingencies and in such types and amounts as is
customary in the case of Persons engaged in the same or similar businesses and
similarly situated, including, without limitation, a fidelity bond or bonds with
financially sound and reputable insurers with such coverage and in such amounts
as is customary in the case of Persons engaged in the same or similar businesses
and similarly situated.  The improvements on the land covered by each
Mortgage shall be kept continuously insured at all times by responsible
insurance companies against fire and extended coverage hazards under policies,
binders, letters, or certificates of insurance, with a standard mortgagee clause
in favor of the Borrower and its assigns.  Each such policy must be in
an amount not less than the highest of the following:  (a) the
amount of the Mortgage Loan, (b) 90% of the insurable value of the improvements,
and (c) an amount sufficient to prevent co-insurance, without reduction by
reason of any co-insurance, reduced rate contribution, or similar clause of the
policies or binders.  Upon request of the Administrative Agent, the
Borrower shall furnish or cause to be furnished to the Administrative Agent from
time to time a summary of the insurance coverage of the Borrower in form and
substance satisfactory to the Administrative Agent and if requested shall
furnish the Administrative Agent copies of the applicable policies.

       

      Section
5.7 Accounts and Records:
Servicing Records.  Each Related Person shall keep books of
record and account in which full, true and correct entries will be made of all
dealings or transactions in relation to its business and activities, in
accordance with GAAP.  Each Related Person shall maintain and
implement administrative and operating procedures (including, without
limitation, an ability to recreate all records pertaining to the performance of
such Related Person's obligations under the Servicing Agreements in the event of
the destruction of the originals of such records) and keep and maintain all
documents, books, records, computer tapes and other information reasonably
necessary or advisable for the performance by each Related Person of its
obligations under the Servicing Agreements.

       

      Section
5.8 Right of
Inspection.  Each Related Person shall permit authorized
representatives of the Administrative Agent or any Lender to discuss the
business, operations, assets and financial condition of such Related Person with
their officers and employees, to examine their Servicing Records and books of
records and account and make copies or extracts thereof and to visit and inspect
any of the Properties of each Related Person, all at such reasonable times and
as often as the Administrative Agent or any Lender may request.  Each
Related Person will provide its accountants with a copy of this Agreement
promptly after the execution hereof and will instruct its accountants to answer
candidly any and all questions that the officers of the Administrative Agent or
any Lender or any authorized representatives of the Administrative Agent or any
Lender may address to them in reference to the financial condition or affairs of
any Related Person as those conditions or affairs relate to this
Agreement.  Each Related Person may have its representatives in
attendance at any meetings between the officers or other representatives of the
Administrative Agent or any Lender and such Related Person's accountants held in
accordance with this authorization.

       

      Section
5.9 Notice of Certain
Events.  The Borrower shall promptly notify the Administrative
Agent upon (a) the receipt of any notice from, or the taking of any other
action by, the holder of any promissory note, debenture or other evidence of
Indebtedness of any Related Person with respect to a claimed default, together
with a detailed statement by a responsible officer of the Borrower specifying
the notice given or other action taken by such holder and the nature of the
claimed default and what action the Borrower is taking or proposes to take with
respect thereto; (b) the commencement of, or any determination in, any
legal, judicial or regulatory proceedings between any Related Person and any
Governmental Authority or any other Person which, if adversely determined, could
have a Material Adverse Effect; (c) any change in senior management of the
Borrower, (d) any material adverse change in the business, operations,
prospects or financial condition of any Related Person, including, without
limitation, the insolvency of any Related Person, (e) any event or
condition which, if adversely determined, could have a Material Adverse Effect,
(f) the occurrence of any Termination Event, or (g) any default under
any material Indebtedness that continues beyond any applicable grace or cure
period.

       

      Section
5.10 Performance of Certain
Obligations and Information Regarding Investors.  The Borrower
shall perform and observe in all material respects each of the provisions of
each Take-Out Commitment and each of the Servicing Agreements on its part to be
performed or observed and will cause all things to be done which are necessary
to have each item of Mortgage Collateral covered by a Take-Out Commitment comply
with the requirements of such Take-Out Commitment.  Upon request by
the Administrative Agent, the Borrower will deliver to the Administrative Agent
financial information concerning any Person the Administrative Agent is
reviewing to determine whether to approve such Person as an Investor; all such
financial information must be delivered to the Administrative Agent prior to any
request by the Borrower for Mortgage Collateral to be delivered to such
Person.

       

      Section
5.11 Use of Proceeds: Margin
Stock.  The proceeds of all Loans shall be used by the Borrower
solely for the origination and purchase of Eligible Mortgage
Loans.  None of such proceeds shall be used for the purpose of
purchasing or carrying any "margin stock" as defined in Regulation U, or
for the purpose of reducing or retiring any Indebtedness which was originally
incurred to purchase or carry margin stock or for any other purpose which might
constitute this transaction a "purpose credit" within the meaning of such
Regulation U.  Neither the Borrower nor any Person acting on
behalf of the Borrower shall take any action in violation of Regulation U
or Regulation X or shall violate Section 7 of the Securities Exchange
Act of 1934 or any rule or regulation thereunder, in each case as now in effect
or as the same may hereafter be in effect.

       

      Section
5.12 Notice of
Default.  The Borrower shall furnish to the Administrative
Agent immediately upon becoming aware of the existence of any Default or Event
of Default, a written notice specifying the nature and period of existence
thereof and the action which the Borrower is taking or proposes to take with
respect thereto.

       

      Section
5.13 Compliance with Loan
Documents.  Each Related Person shall promptly comply with any
and all covenants and provisions of this Agreement, the Notes and the other Loan
Documents to be complied with by such Related Person.

       

      Section
5.14 Operations and
Properties.  Each Related Person shall comply with all rules,
regulations and guidelines applicable to it.  Each Related Person
shall act prudently and in accordance with customary industry standards in
managing and operating its Property.

       

      Section
5.15 Environmental
Matters.

       

      (a) Each
Related Person will comply in all material respects with all Environmental Laws
now or hereafter applicable to such Related Person and shall obtain, at or prior
to the time required by applicable Environmental Laws, all environmental, health
and safety permits, licenses and other authorizations necessary for its
operations and will maintain such authorizations in full force and
effect.

       

      (b) The
Borrower will promptly furnish to the Administrative Agent and each Lender all
written notices of violation, orders, claims, citations, complaints, penalty
assessments, suits or other proceedings received by the Borrower, or of which it
has notice, pending or threatened against the Borrower, by any Governmental
Authority with respect to any alleged violation of or non-compliance with any
Environmental Laws or any permits, licenses or authorizations in connection with
its ownership or use of its properties or the operation of its business that
could, individually or in the aggregate, be reasonably expected to have a
Material Adverse Effect.

       

      Section
5.16 MERS
Status.

       

      (a) The
Borrower will (a) at all times, maintain its status as a MERS member in
good standing, (b) at all times remain in full compliance with all terms
and conditions of membership in MERS, including the MERSCORP, Inc. "Rules of
Membership" most recently promulgated by MERSCORP, Inc., the "MERS Procedures
Manual" most recently promulgated by MERS, and any and all other guidelines or
requirements set forth by MERS or MERSCORP, Inc., as each of the foregoing may
be modified from time to time, including, but in no way limited to, compliance
with guidelines and procedures set forth with respect to technological
capabilities, drafting and recordation of Mortgages, registration of Mortgages
on the MERS System, and registration of the interest of the Administrative Agent
in such mortgages and membership requirements, (c) promptly, upon the
request of the Administrative Agent, execute and deliver to the Administrative
Agent an assignment of mortgage, in blank, with respect to any MERS Mortgage
that the Administrative Agent determines shall be removed from the MERS System
and (d) at all times maintain the Electronic Tracking Agreement executed of
even date herewith in full force and effect.

       

      (b) The
Borrower shall not de-register or attempt to de-register any Mortgage from the
MERS System unless the Borrower has complied with the requirements set forth in
the Electronic Tracking Agreement and the requirements hereof and of the
Security Agreement relating to release of Collateral.

       

      Section
5.17 Hedging
Arrangements.  The Borrower shall maintain Hedging Arrangements
with respect to all Eligible Mortgage Loans not subject to a Take-Out Commitment
with Persons reasonably satisfactory to the Administrative Agent in order to
mitigate the risk that the market value of any such Eligible Mortgage Loan will
change as a result of a change in interest rates or the market for mortgage loan
assets before the Eligible Mortgage Loan is purchased by an Investor or
repurchased by the Borrower.

       

      ARTICLE
VI                                

       

      

       

      NEGATIVE
COVENANTS

       

      Each
Related Person shall at all times comply with (or cause compliance with) the
covenants contained in this Article VI, from
the date hereof and for so long as any part of the Obligations or the
Commitments are outstanding unless the Required Lenders have agreed otherwise in
writing:

       

      Section
6.1 No Merger; Limitation on
Issuance of Securities.  No Related Person shall merge or
consolidate with or into any Person; provided that the Borrower may
merge or consolidate with any wholly owned subsidiary of the Borrower if the
Borrower is the surviving corporation; and provided further that after
giving effect thereto, no Default or Event of Default would exist
hereunder.  No Related Person shall acquire by purchase, or otherwise,
all or substantially all of the assets or capital stock of any
Person.  The Borrower will not issue any securities other than shares
of its common stock and any options or warrants giving the holders thereof only
the right to acquire such shares.  No Related Person other than the
Borrower will issue any additional shares of its capital stock or other
securities or any options, warrants or other rights to acquire such additional
shares or other securities except to the Borrower and only to the extent not
otherwise forbidden under the terms hereof.  No Subsidiary of the
Borrower which is a partnership will allow any diminution of the Borrower's
interest (direct or indirect) therein.  There shall be no Change of
Control.

       

      Section
6.2 Limitation on
Indebtedness.  No Related Person shall incur, create, contract,
assume, have outstanding, guarantee or otherwise be or become, directly or
indirectly, liable in respect of any Indebtedness or Guaranty Obligations
except:

       

      (a) the
Obligations;

       

      (b) trade
debt, equipment leases, office leases, equipment loans and liens for taxes and
assessments not yet due and payable owed in the ordinary course of
business;

       

      (c) Indebtedness
of the Related Persons under agreements and in the amount described on the
disclosure schedule attached hereto as Schedule 6.2;

       

      (d) Intercompany
Loans; and

       

      (e) other
mortgage collateralized facilities, provided an intercreditor agreement in form
and substance satisfactory to the Administrative Agent is in effect with respect
thereto.

       

      Section
6.3 Fiscal Year, Method of
Accounting.  No Related Person shall change its Fiscal Year or
make any material change in its method of accounting without prior notice to
Lender.  If any such change is required by Law, the reports and
financial statement of the Borrower and its Consolidated subsidiaries required
hereunder may be prepared in accordance with such change but, if such changes
are material, all calculations and determinations to be made hereunder may be
made in accordance with such change only after notice of such change is given to
the Administrative Agent and the Administrative Agent agrees to such change
insofar as it affects the accounting of the Borrower or of the Borrower and its
Consolidated subsidiaries.

       

      Section
6.4 Business.  No
Related Person shall, directly or indirectly, engage in any business which
differs materially from that currently engaged in by such Related
Person.

       

      Section
6.5 Liquidations, Consolidations
and Dispositions of Substantial Assets.  No Related Person
shall dissolve or liquidate or sell, transfer, lease or otherwise dispose of any
material portion of their property or assets or business; provided, however, nothing in
this Section 6.5
shall be construed to prohibit any Related Person from selling rights to service
mortgage loans and pools of mortgage loans or Mortgage Notes in the ordinary
course of their business.

       

      Section
6.6 Loans, Advances, and
Investments.  No Related Person shall make any loan (other than
Mortgage Loans and Intercompany Loans), advance, extension of credit, or capital
contribution to, or investment in (including any investment in any Subsidiary,
joint venture or partnership), or purchase or otherwise acquire any of the
capital stock, securities, or evidences of indebtedness of, any Person
(including, without limitation, any employee or officer of any Related Person)
(collectively, "Investment"),
or otherwise acquire any interest in, or control of, another Person, except for
the following:

       

      (a) Cash
Equivalents;

       

      (b) Any
acquisition of securities or evidences of indebtedness of others when acquired
by a Related Person in settlement of accounts receivable or other debts arising
in the ordinary course of its business, so long as the aggregate amount of any
such securities or evidences of indebtedness is not material to the business or
condition (financial or otherwise) of such Related Person;

       

      (c) Mortgage
Notes acquired by the Borrower in the ordinary course of the Borrower's
business;

       

      (d) Investments
by any Related Person other than those described in the preceding
clauses (a) through (c) in a business venture substantially similar to
those engaged in by such Related Person, provided that the aggregate amount of
all such other Investments for all Related Persons shall at no time exceed
$500,000; and

       

      (e) Investments
in Hedging Arrangements in the ordinary course of the Borrower's
business.

       

      Section
6.7 Use of
Proceeds.  The Borrower shall not permit the proceeds of the
Loans to be used for any purpose other than those permitted by Section 5.11
hereof.  The Borrower shall not, directly or indirectly, use any of
the proceeds of the Loans for the purpose, whether immediate, incidental or
ultimate, of buying any "margin stock" or of maintaining, reducing or retiring
any Indebtedness originally incurred to purchase a stock that is currently any
"margin stock," or for any other purpose which might constitute this transaction
a "purpose credit," in each case within the meaning of Regulation G of the Board
of Governors of the Federal Reserve System (12 C.F.R. 207, as amended), or
Regulation U, or otherwise take or permit to be taken any action which would
involve a violation of such Regulation G or Regulation U or of Regulation T (12
C.F.R. 220, as amended) or Regulation X (12 C.F.R. 224, as amended) or any other
regulation of such board.

       

      Section
6.8 Actions with Respect to
Mortgage Collateral.  The Borrower shall not:

       

      (a) Compromise,
extend, release, or adjust payments on any Mortgage Collateral, accept a
conveyance of mortgaged property in full or partial satisfaction of any Mortgage
Collateral, or release any Mortgage securing or underlying any Mortgage
Collateral;

       

      (b) Agree to
the amendment or termination of any Take-Out Commitment in which Lender has a
security interest or to substitution of a Take-Out Commitment for a Take-Out
Commitment in which the Administrative Agent has a security interest hereunder,
if such amendment, termination or substitution may reasonably be expected (as
determined by the Administrative Agent in its sole discretion) to have a
Material Adverse Effect;

       

      (c) Transfer,
sell, assign, or deliver any Mortgage Collateral pledged to the Administrative
Agent to any Person other than the Administrative Agent, except pursuant to a
Take-Out Commitment; or

       

      (d) Grant,
create, incur, permit or suffer to exist any Lien upon any Mortgage Collateral
except for Permitted Liens and such non-consensual Liens as may be deemed to
arise as a matter of law pursuant to any Take-Out Commitment.

       

      Section
6.9 Transactions with
Affiliates.  The Borrower shall not enter into any transactions
including, without limitation, any purchase, sale, lease or exchange of property
or the rendering of any service, with any Affiliate unless such transactions are
otherwise permitted under this Agreement, are in the ordinary course of the
Borrower's business and are upon fair and reasonable terms no less favorable to
the Borrower than it would obtain in a comparable arm's length transaction with
a Person not an Affiliate.

       

      Section
6.10 Liens.  No
Related Person shall grant, create, incur, assume, permit or suffer to exist any
Lien, upon any of its Property, including without limitation any and all of the
Borrower's Mortgage Notes, and Servicing Rights and the proceeds from any
thereof, other than (a) Liens which secure payment of the Obligations,
(b) first Liens on Property which also secures Second Lien/HELOC Loans, so
long as the Unit Collateral Value of such Mortgage Notes secured thereby does
not exceed the Applicable Sublimit for Second Lien/HELOC Loans, and
(c) Liens on Property other than Collateral which secure payment of the
Indebtedness permitted to be incurred hereunder.

       

      Section
6.11 ERISA
Plans.  No Related Person shall adopt or agree to maintain or
contribute to any ERISA Plan.  the Borrower shall promptly notify
Lender in writing in the event an ERISA Affiliate adopts an ERISA
Plan.

       

      Section
6.12 Change of Principal
Office.  The Borrower shall not move its principal office,
executive office or principal place of business from the address set forth in on
the Borrower's signature page hereto without prior written notice to the
Administrative Agent.

       

      Section
6.13 Tangible Net
Worth.  As of the end of each Fiscal Quarter, the Tangible Net
Worth of the Borrower shall not be less than $9,000,000.

       

      Section
6.14 Total Liabilities to
Adjusted Tangible Net Worth.  The ratio of Total Liabilities of
the Borrower to Adjusted Tangible Net Worth of the Borrower shall never be more
than 10.0 to 1.0.

       

      Section
6.15 Adjusted Tangible Net
Worth.  As of the end of each Fiscal Quarter, the Adjusted
Tangible Net Worth of the Borrower shall not be less than
$7,000,000.

       

      Section
6.16 Dividends.  The
Borrower shall not, nor shall it permit any Subsidiary to, declare or pay any
Dividends, unless at the time of each Dividend by the Borrower, (x) no
Default or Event of Default shall have occurred and be continuing or would
result therefrom and (y) after giving effect to such Dividend, the Borrower
is in compliance on a pro forma basis with the covenants set forth in Sections 6.13
through 6.15.

       

      ARTICLE
VII                                           

       

      

       

      EVENTS
OF DEFAULT

       

      Section
7.1 Nature of
Event.  An Event of Default shall exist if any one or more of
the following occurs:

       

      (a) The
Borrower fails to make any payment of (i) principal of any Note on or
before the date such payment is due, (ii) interest on any Note and such
failure continues for three (3) Business Days after the date such payment is
due, (iii) any fee due hereunder, under any Note, or under any other Loan
Document, and such failure continues for a period of five (5) Business Days
after the date such payment is due, or (iv) any expense or other amount due
hereunder, under any Note, or under any other Loan Document and such failure
continues for a period of five (5) Business Days after the Administrative Agent
gives the Borrower notice thereof;

       

      (b) Default
is made in the due observance or performance by any Related Person of any
covenant set forth in Article VI or
Section 5.9 of
this Agreement;

       

      (c) Default
is made in the due observance or performance by any Related Person of any of the
covenants or agreements contained in this Agreement other than those described
in subsections (a) or (b) immediately above and such Default continues for
a period of fifteen (15) days after the Administrative Agent gives the Borrower
notice thereof;

       

      (d) Any
Related Person defaults in the due observance or performance or any of the
covenants or agreements contained in any other Loan Document to which it is a
party, and (unless such default otherwise constitutes a Default pursuant to
other provisions of this Section 7.1)
such default continues unremedied beyond the expiration of any applicable grace
period which may be expressly allowed under such other Loan
Document;

       

      (e) Any
material statement, warranty or representation by or on behalf of any Related
Person contained in this Agreement, the Notes or any other Loan Document to
which it is a party, or in any Borrowing Request, officer's certificate or other
writing furnished in connection with this Agreement, proves to have been
incorrect or misleading in any material respect as of the date made or deemed
made;

       

      (f) Any
Related Person:

       

      (i) suffers
the entry against it of a judgment, decree or order for relief by a court of
competent jurisdiction in an involuntary proceeding commenced under any
applicable bankruptcy, insolvency or other similar law of any jurisdiction now
or hereafter in effect, including the federal Bankruptcy Code, as from time to
time amended, or has any such proceeding commenced against it which remains
undismissed for a period of sixty (60) days; or

       

      (ii) commences
a voluntary case under any applicable bankruptcy, insolvency or similar law now
or hereafter in effect, including the federal Bankruptcy Code, as from time to
time amended, or applies for or consents to the entry of an order for relief in
an involuntary case under any such law; or makes a general assignment for the
benefit of creditors; or fails generally to pay (or admits in writing its
inability to pay) its debts as such debts become due; or takes corporate or
other action to authorize any of the foregoing; or

       

      (iii) suffers
the appointment of or taking possession by a receiver, liquidator, assignee,
custodian, trustee, sequestrator or similar official of all or a substantial
part of its assets or of any part of the Mortgage Collateral in a proceeding
brought against or initiated by it, and such appointment or taking possession is
neither made ineffective nor discharged within sixty (60) days after the making
thereof, or such appointment or taking possession is at any time consented to,
requested by, or acquiesced to by it; or

       

      (iv) suffers
the entry against it of a final judgment for the payment of money in excess of
$200,000.00 (not covered by insurance satisfactory to Lender in its discretion),
unless the same is discharged within thirty (30) days after the date of entry
thereof or an appeal or appropriate proceeding for review thereof is taken
within such period and a stay of execution pending such appeal is obtained;
or

       

      (v) suffers a
writ or warrant of attachment or any similar process to be issued by any court
against all or any substantial part of its assets or any part of the Mortgage
Collateral.

       

      (g) Any
Related Person fails to make when due or within any applicable grace period any
payment on any Indebtedness (other than the Obligations) with an unpaid
principal balance of over $500,000.00; or any event or condition occurs under
any provision contained in any agreement under which such obligation is
governed, evidenced or secured (or any other material breach or default under
such obligation or agreement occurs) if the effect thereof is to cause or permit
the holder or trustee of such obligation to cause such obligation to become due
or repurchased, prepaid, redeemed or defeased prior to its stated maturity; or
any such obligation becomes due (other than by regularly scheduled payments)
prior to its stated maturity; or any of the foregoing occurs with respect to any
one or more items of Indebtedness of any Related Person with unpaid principal
balances exceeding, in the aggregate, $250,000.00;

       

      (h) Any event
or condition occurs under any provision contained in the Parent Debt Agreement
(or any other material breach or default under the Parent Debt Agreement occurs)
if the effect thereof is to cause or permit the holder or trustee of such
obligation to cause such obligation to become due or repurchased, prepaid,
redeemed or defeased prior to its stated maturity; or any default or event of
default occurs under any provision contained in any line of credit maintained by
the Borrower and such default is not cured within any applicable given
period;

       

      (i) This
Agreement, the Notes or any other Loan Document shall for any reason cease to be
in full force and effect, or be declared null and void or unenforceable in whole
or in part as the result of any action initiated by any Person other than Lender
or the validity or enforceability of any such document shall be challenged or
denied by any Person other than Lender other than by reason of
illegality;

       

      (j) Either
(i) any "accumulated funding deficiency" (as defined in
Section 412(a)) of the Code in excess of $25,000.00 exists with respect to
any ERISA Plan, whether or not waived by the Secretary of the Treasury or his
delegate, or (ii) any Termination Event occurs with respect to any ERISA
Plan and the then current value of such ERISA Plan's benefits guaranteed under
Title IV of ERISA exceeds the then current value of such ERISA Plan's
assets available for the payment of such benefits by more than $10,000.00 (or in
the case of a Termination Event involving the withdrawal of a substantial
employer, the withdrawing employer's proportionate share of such excess exceeds
such amount) or (iii) any Related Person or any ERISA Affiliate withdraws
from a multiemployer plan resulting in liability under Title IV of ERISA of
an amount in excess of $10,000.00 in the case of any Related Person or
$10,000.00 in the case of any other ERISA Affiliate; or

       

      (k) A Change
of Control occurs.

       

      Section
7.2 Default
Remedies.  Upon the occurrence and during the continuance of an
Event of Default, the Administrative Agent may, with the consent of the Required
Lenders, or the Administrative Agent shall, upon the request of the Required
Lenders, declare the Commitments to be terminated and/or declare the entire
principal and all interest accrued on the Notes to be, and the Notes, together
with all Obligations, shall thereupon become, forthwith due and payable, without
any presentment, demand, protest, notice of protest and nonpayment, notice of
acceleration or of intent to accelerate or other notice of any kind, all of
which hereby are expressly waived.  Notwithstanding the foregoing, if
an Event of Default specified in Subsections 7.1(f)(i),
(ii) or (iii) above occurs
with respect to the Borrower, the Commitments shall automatically and
immediately terminate and the Notes and all other Obligations shall become
automatically and immediately due and payable, both as to principal and
interest, without any action by Lender and without presentment, demand, protest,
notice of protest and nonpayment, notice of acceleration or of intent to
accelerate, or any other notice of any kind, all of which are hereby expressly
waived, anything contained herein, in the Notes to the contrary
notwithstanding.

       

      Section
7.3 Application of
Proceeds.  After an Event of Default and acceleration of the
Obligations, the proceeds of any sale or enforcement of all or any part of the
Collateral pursuant to the Security Agreement and the balance of any moneys in
the Settlement Account and the Funding Account shall be applied by the
Administrative Agent:

       

      FIRST, to
the payment of all reasonable costs and expenses of such sale or enforcement,
including reasonable compensation to the Administrative Agent's agents and
counsel, and all reasonable expenses, liabilities and advances made or incurred
by the Administrative Agent acting on instructions of the Required Lenders in
connection therewith, and to any reimbursements due the Administrative Agent
under Section 5.5;

       

      SECOND,
to the payment of all reasonable costs and expenses incurred by the
Administrative Agent under the Security Agreement;

       

      THIRD, to
any reimbursements due the Lenders under Section 5.5;

       

      FOURTH,
to the payment of all accrued and unpaid interest on and fees attributable to,
all Loans under this Agreement, ratably according to the amount so due to each
Lender; and thereafter to the payment of the outstanding principal balance of
all Loans under this Agreement, ratably according to the amount so due to each
Lender;

       

      FIFTH, to
the extent proceeds remain after application under the preceding subparagraphs,
to the payment of all remaining Obligations, until such amounts are paid in
full; and

       

      SIXTH, to
the payment to the Borrower, or to its successors or assigns, or as a court of
competent jurisdiction may direct, of any surplus then remaining from such
proceeds.

       

      If the
proceeds of any such sale are insufficient to cover the costs and expenses of
such sale, as aforesaid, and the payment in full of the Obligations, the
Borrower shall remain liable for any deficiency.

       

      Section
7.4 Preservation of
Rights.  No delay or omission of the Lenders or the
Administrative Agent to exercise any right under the Loan Documents shall impair
such right or be construed to be a waiver of any Default or an acquiescence
therein, and the making of a Loan notwithstanding the existence of a Default or
the inability of the Borrower to satisfy the conditions precedent to such Loan
shall not constitute any waiver or acquiescence.  Any single or
partial exercise of any such right shall not preclude other or further exercise
thereof or the exercise of any other right, and no waiver, amendment or other
variation of the terms, conditions or provisions of the Loan Documents
whatsoever shall be valid unless in writing signed by the Lenders required
pursuant to Section 11.2,
and then only to the extent in such writing specifically set
forth.  All remedies contained in the Loan Documents or by law
afforded shall be cumulative and all shall be available to the Administrative
Agent and the Lenders until the Obligations have been paid in full.

       

      ARTICLE
VIII                                           

       

      

       

      INDEMNIFICATION

       

      Section
8.1 Indemnification.  The
Borrower agrees to indemnify the Administrative Agent, the Lenders and each of
their respective directors, officers, agents attorneys, employees,
representatives and Affiliates of each Lender (each an "Indemnified
Party"), upon demand, from and against any and all liabilities,
obligations, claims, losses, damages, penalties, actions, judgments, suits,
costs, expenses or disbursements (including reasonable fees of attorneys,
accountants, experts and advisors) of any kind or nature whatsoever (in this
Section 8.1
collectively called "liabilities and costs") which to any extent (in whole or in
part) may be imposed on, incurred by, or asserted against any Indemnified Party
growing out of, resulting from or in any other way associated with any of the
Mortgage Collateral, the Loan Documents, and the transactions and events
(including the enforcement or defense thereof) at any time associated therewith
or contemplated therein (including any violation or noncompliance with any
Environmental Laws by any Related Person).

       

      THE
FOREGOING INDEMNIFICATION SHALL APPLY WHETHER OR NOT SUCH LIABILITIES AND COSTS
ARE IN ANY WAY OR TO ANY EXTENT OWED, IN WHOLE OR IN PART, UNDER ANY CLAIM OR
THEORY OF STRICT LIABILITY, OR ARE CAUSED IN WHOLE OR PART, BY ANY NEGLIGENT ACT
OR OMISSION OF ANY KIND BY SUCH INDEMNIFIED PARTY,

       

      provided
only that such Indemnified Party shall not be entitled under this section to
receive indemnification for that portion, if any, of any liabilities and costs
which is proximately caused by its own individual gross negligence or willful
misconduct as determined by a court of competent jurisdiction in a final
non-appealable judgment.  All amounts payable by the Borrower shall be
immediately due upon the Administrative Agent's or any Lender's request for the
payment thereof.

       

      Section
8.2 Limitation of
Liability.  None of the Administrative Agent or any Lender, or
their respective directors, officers, agents, attorneys, employees,
representatives or Affiliates shall be liable for any action taken or omitted to
be taken by it or them under or in connection with this
Agreement.  THE
FOREGOING EXCULPATION SHALL APPLY TO ANY NEGLIGENT ACT OR OMISSION OF ANY KIND
BY ANY SUCH PERSON, OR ANY ACT OR OMISSION WHICH CAUSES SUCH PERSON TO BE
SUBJECT TO STRICT LIABILITY, PROVIDED THAT SUCH PERSON SHALL BE LIABLE FOR ITS
OWN INDIVIDUAL GROSS NEGLIGENCE OR WILLFUL MISCONDUCT.

       

      ARTICLE
IX                                

       

      

       

      THE
ADMINISTRATIVE AGENT

       

      Section
9.1 Appointment.  Each
Lender hereby irrevocably designates and appoints the Administrative Agent as
the agent of such Lender under this Agreement and the other Loan Documents, and
each such Lender irrevocably authorizes the Administrative Agent, in such
capacity, to take such action on its behalf under the provisions of this
Agreement and the other Loan Documents and to exercise such powers and perform
such duties as are expressly delegated to the Administrative Agent by the terms
of this Agreement and the other Loan Documents, together with such other powers
as are reasonably incidental thereto.  The Administrative Agent is
hereby authorized to enter into the Security Agreement thereby appointing the
Administrative Agent as collateral agent to act on behalf of the Lenders and all
obligations of the Lenders under the Security Agreement shall be binding upon
each Lender as if such Lender had executed the Security
Agreement.  Notwithstanding any provision to the contrary elsewhere in
this Agreement, the Administrative Agent shall not have any duties or
responsibilities, except those expressly set forth herein, nor any fiduciary
relationship with any Lender, and no implied covenants, functions,
responsibilities, duties, obligations or liabilities shall be read into this
Agreement or any other Loan Document or otherwise exist against the
Administrative Agent.

       

      Section
9.2 Delegation of
Duties.  The Administrative Agent may execute any of its duties
under this Agreement and the other Loan Documents by or through agents or
attorneys-in-fact and shall be entitled to advise of counsel concerning all
matters pertaining to such duties.  The Administrative Agent shall not
be responsible for the negligence or misconduct of any agents or
attorneys-in-fact selected by it with reasonable care.

       

      Section
9.3 Exculpatory
Provisions.  Neither the Administrative Agent nor any of its
officers, directors, employees agents, attorneys-in-fact or affiliates shall be
(i) liable to any Lender or any other Person for any damage, loss or injury
resulting from any action taken or omitted to be taken by the Administrative
Agent or any of its officers, directors, employees, agents, attorneys-in-fact or
affiliates under or in connection with this Agreement or any other Loan
Document, whether sounding in tort, contract or otherwise, INCLUDING IN RESPECT OF LOSSES,
LIABILITIES OR OTHER OBLIGATIONS SUFFERED BY SUCH PERSON'S OWN NEGLIGENCE OR
STRICT LIABILITY but except to the extent that any of the foregoing are
found by a final and nonappealable decision of a court of competent jurisdiction
to have resulted from its or such Person's own gross negligence or willful
misconduct, (ii) responsible in any manner to any of the Lenders for any
recitals, statements, representations or warranties made by any Related Person
or any officer thereof contained in this Agreement or any other Loan Document or
in any certificate, report, statement or other document referred to or provided
for in, or received by the Administrative Agent under or in connection with,
this Agreement or any other Loan Document or for the value, validity,
effectiveness, genuineness, enforceability or sufficiency of this Agreement or
any other Loan Document or for any failure of any Person a party thereto to
perform its obligations hereunder or thereunder, or (iii) responsible in
any manner to any of the Lenders for any fraud of any Related Person or any
officer thereof in this Agreement, in the performance of this Agreement, or in
any way related to the transactions contemplated hereby.  The
Administrative Agent shall not be under any obligation to any Lender to
ascertain or to inquire as to the observance or performance of any of the
agreements contained in, or conditions of, this Agreement or any other Loan
Document, or to inspect the properties, books or records of any Related
Person.

       

      Section
9.4 Reliance by
Agent.  The Administrative Agent shall be entitled to rely, and
shall be fully protected in relying, upon any instrument, writing, resolution,
notice, consent, certificate, affidavit, letter, telecopy, telex or teletype
message, statement, order or other document or conversation believed by it to be
genuine and correct and to have been signed, sent or made by the proper Person
or Persons and upon advice and statements of legal counsel (including counsel to
the Borrower), independent accountants and other experts selected by the
Administrative Agent.  The Administrative Agent may deem and treat the
payee of any Note as the owner thereof for all purposes unless a written notice
of assignment, negotiation or transfer thereof shall have been filed with the
Administrative Agent.  The Administrative Agent shall be fully
justified in failing or refusing to take any action under this Agreement or any
other Loan Document unless it shall first receive such advice or concurrence of
the Required Lenders (or, if so specified in this Agreement, all Lenders) as it
deems appropriate or it shall first be indemnified to its satisfaction by the
Lenders against any and all liability and expense that may be incurred by it by
reason of taking or continuing to take any such action.  The
Administrative Agent shall in all cases be fully protected in acting, or in
refraining from acting, under this Agreement and the other Loan Documents in
accordance with a request of the Required Lenders (or, if so specified in this
Agreement, all Lenders), and such request and any action taken or failure to act
pursuant thereto shall be binding upon all the Lenders and all future holders of
the Loans.  Any request, authority or consent of any Person who, at
the time of making such request of giving such authority or consent, is the
holder of any Note shall be conclusive and binding on any subsequent holder,
transferee, assignee or endorsee, as the case may be, of such Note or of any
Note or Notes issued in exchange therefor.

       

      Section
9.5 Notice of
Default.  The Administrative Agent shall not be deemed to have
knowledge or notice of the occurrence of a Default or Event of Default unless
the Administrative Agent has received notice from a Lender or the Borrower
referring to this Agreement, describing such Default or Event of Default and
stating that such notice is a "notice of default".  In the event that
the Administrative Agent receives such a notice, the Administrative Agent shall
give notice thereof to the Lenders.  The Administrative Agent shall
take such action with respect to such Default or Event of Default as shall be
reasonably directed by the Required Lenders (or, if so specified by this
Agreement, of all Lenders); provided that, unless and
until the Administrative Agent shall have received such directions, the
Administrative Agent may (but shall not be obligated to) take such action, or
refrain from taking such action, with respect to such Default or Event of
Default as it shall deem advisable in the best interests of the
Lenders.

       

      Section
9.6 Non-Reliance on
Administrative Agent and Other Lenders.  Each Lender expressly
acknowledges that neither the Administrative Agent nor any of its officers,
directors, employees, agents, attorneys-in-fact or affiliates have made any
representations or warranties to it and that no act by the Administrative Agent
hereafter taken, including any review of the affairs of a Related Person or any
Affiliate of a Related Person, shall be deemed to constitute any representation
or warranty by the Administrative Agent to any Lender.  Each Lender
represents to the Administrative Agent that it has, independently and without
reliance upon the Administrative Agent or any other Lender, and based on such
documents and information as it has deemed appropriate, made its own appraisal
of and investigation into the business, operations, property, financial and
other condition and creditworthiness of the Related Persons and their affiliates
and made its own decision to make its Loans hereunder and enter into this
Agreement.  Each Lender also represents that it will, independently
and without reliance upon the Administrative Agent or any other Lender, and
based on such documents and information as it shall deem appropriate at the
time, continue to make its own credit analysis, appraisals and decisions in
taking or not taking action under this Agreement and the other Loan Documents,
and to make such investigation as it deems necessary to inform itself as to the
business, operations, property, financial and other condition and
creditworthiness of the Related Persons and their affiliates.  Except
for notices, reports and other documents expressly required to be furnished to
the Lenders by the Administrative Agent hereunder, the Administrative Agent
shall not have any duty or responsibility to provide any Lender with any credit
or other information concerning the business, operations, property, condition
(financial or otherwise), prospects or creditworthiness of any Related Person or
any affiliate of a Related Person that may come into the possession of the
Administrative Agent or any of its officers, directors, employees, agents,
attorneys-in-fact or affiliates.

       

      Section
9.7 Indemnification.  The
Lenders agree to indemnify the Administrative Agent in its capacity as such (to
the extent not reimbursed by the Borrower and without limiting the obligation of
the Borrower to do so), ratably according to their respective Commitment
Percentages in effect on the date on which indemnification is sought under this
Section (or, if indemnification is sought after the date upon which the
Commitments shall have terminated and the Loans shall have been paid in full,
ratably in accordance with their respective Commitment Percentages immediately
prior to such date), from and against any and all liabilities, obligations,
losses, damages, penalties, actions, judgments, suits, costs, expenses or
disbursements of any kind whatsoever that may at any time (whether before or
after the payment of the Loans) be imposed on, incurred by or asserted against
the Administrative Agent in any way relating to or arising out of, the
Commitments, this Agreement, any of the other Loan Documents or any documents
contemplated by or referred to herein or therein or the transactions
contemplated hereby or thereby or any action taken or omitted by the
Administrative Agent under or in connection with any of the foregoing; provided that no Lender shall
be liable for the payment of any portion of such liabilities, obligations,
losses, damages, penalties, actions, judgments, suits, costs, expenses or
disbursements that are found by a final and nonappealable decision of a court of
competent jurisdiction to have resulted from the Administrative Agent's gross
negligence or willful misconduct, PROVIDED, FURTHER, HOWEVER, THAT SUCH INDEMNIFICATION SHALL
COVER THE ADMINISTRATIVE AGENT'S NEGLIGENCE AND STRICT
LIABILITY.  The agreements in this Section shall survive the
payment of the Loans and all other amounts payable hereunder.

       

      Section
9.8 Agent in Its Individual
Capacity.  In the event the Administrative Agent is a Lender,
the Administrative Agent shall have the same rights and powers hereunder and
under any other Loan Document with respect to its Commitment and its Loans as
any Lender and may exercise the same as though it were not the Administrative
Agent, and the terms "Lender" and "Lenders" shall, at any time when the Agent is
a Lender, unless the context otherwise indicates, include the Administrative
Agent in its individual capacity.  The Administrative Agent and its
Affiliates may make loans to, accept deposits from and generally engage in any
kind of business with any Related Person as though the Administrative Agent were
not the Administrative Agent.  The Administrative Agent, in its
individual capacity, is not obligated to be or remain a Lender.

       

      Section
9.9 Successor Administrative
Agent.  The Administrative Agent may resign as Administrative
Agent upon thirty (30) days' notice to the Lenders and the
Borrower.  If the Administrative Agent shall resign as Administrative
Agent under this Agreement and the other Loan Documents, then the Required
Lenders shall appoint from among the Lenders a successor agent for the Lenders,
which successor agent shall (unless an Event of Default shall have occurred and
be continuing) be subject to approval by the Borrower (which approval shall not
be unreasonably withheld or delayed), whereupon such successor agent shall
succeed to the rights, powers and duties of the Administrative Agent, and the
term "Administrative Agent" shall mean such successor agent effective upon such
appointment and approval, and the form Administrative Agent's rights, powers and
duties as Administrative Agent shall be terminated, without any other or further
act or deed on the part of such former Administrative Agent or any of the
parties to this Agreement or any holders of the Loans.  If no
successor agent has accepted appointment as Administrative Agent by the date
that is 30 days following a retiring Administrative Agent's notice of
resignation, the retiring Administrative Agent's resignation shall nevertheless
thereupon become effective, and the Lenders shall assume and perform all of the
duties of the Administrative Agent hereunder until such time, if any, as the
Required Lenders appoint a successor agent as provided for
above.  After any retiring Administrative Agent's resignation as
Administrative Agent, the provisions of this Article IX shall
inure to its benefit as to any actions taken or omitted to be taken by it while
it was Administrative Agent under this Agreement and the other Loan
Documents.

       

      Section
9.10 Administrative Agent's
Discretionary Authority.  Notwithstanding anything to the
contrary, in connection with the Borrowing Base, the Administrative Agent is
hereby authorized by the Lenders to grant temporary waivers of compliance by the
Borrower with the eligibility requirements regarding qualification of any
Collateral as an Eligible Mortgage Loan or with the Borrowing Base sublimits
when the Administrative Agent deems it appropriate, in its sole discretion, as
to all matters (other than (x) any requirement that a Mortgage Loan be
covered by a Take-Out Commitment, (y) the requirements contained in
subparts (a) through (j) of the definition of "Eligible Mortgage Loan" or
(z) the requirements contained in the definition of "Single Family"), if
the aggregate amount of deviation from strict compliance, based on the Unit
Collateral Value so included in the Borrowing Base and the amount of excess
permitted over the Borrowing Base sublimits does not exceed $5,000,000.00 at ay
time (provided,
however, that
the duration of any such temporary waiver shall not exceed twenty (20) days with
respect to any Wet Loan unless the Mortgage Note related to such Mortgage has
been delivered to the Administrative Agent).

       

      ARTICLE
X                                

       

      

       

      TAXES
AND YIELD PROTECTION

       

      Section
10.1 Taxes.

       

      (a) Payments Free of
Taxes.  Any and all payments by or on account of any obligation
of the Borrower hereunder or under any other Loan Document shall be made free
and clear of and without reduction or withholding for any Indemnified Taxes or
Other Taxes, provided that if the
Borrower shall be required by applicable law to deduct any Indemnified Taxes
(including any Other Taxes) from such payments, then (i) the sum payable
shall be increased as necessary so that after making all required deductions
(including deductions applicable to additional sums payable under this Section)
the Administrative Agent or Lender, as the case may be, receives an amount equal
to the sum it would have received had no such deductions been made,
(ii) the Borrower shall make such deductions and (iii) the Borrower
shall timely pay the full amount deducted to the relevant Governmental Authority
in accordance with applicable law.

       

      (b) Payment of Other Taxes by
the Borrower.  Without limiting the provisions of subsection (a)
above, the Borrower shall timely pay any Other Taxes to the relevant
Governmental Authority in accordance with applicable law.

       

      (c) Indemnification by the
Borrower.  The Borrower shall indemnify the Administrative
Agent and each Lender, within 10 days after demand therefor, for the full amount
of any Indemnified Taxes or Other Taxes (including Indemnified Taxes or Other
Taxes imposed or asserted on or attributable to amounts payable under this
Section) paid by the Administrative Agent or such Lender, as the case may be,
and any penalties, interest and reasonable expenses arising therefrom or with
respect thereto, whether or not such Indemnified Taxes or Other Taxes were
correctly or legally imposed or asserted by the relevant Governmental
Authority.  A certificate in reasonable detail as to the amount of
such payment or liability delivered to the Borrower by a Lender (with a copy to
the Administrative Agent), or by the Administrative Agent on its own behalf or
on behalf of a Lender, shall be conclusive absent manifest error.

       

      (d) Evidence of
Payments.  As soon as practicable after any payment of
Indemnified Taxes or Other Taxes by the Borrower to a Governmental Authority,
the Borrower shall deliver to the Administrative Agent the original or a
certified copy of a receipt issued by such Governmental Authority evidencing
such payment, and a copy of the return reporting such payment or other evidence
of such payment reasonably satisfactory to the Administrative
Agent.

       

      (e) Status of
Lenders.  Any Foreign Lender that is entitled to an exemption
from or reduction of withholding tax under the law of the jurisdiction in which
the Borrower is resident for tax purposes, or any treaty to which such
jurisdiction is a party, with respect to payments hereunder or under any other
Loan Document shall deliver to the Borrower (with a copy to the Administrative
Agent), at the time or times prescribed by applicable law or reasonably
requested by the Borrower or the Administrative Agent, such properly completed
and executed documentation prescribed by applicable law as will permit such
payments to be made without withholding or at a reduced rate of
withholding.  In addition, any Lender, if requested by the Borrower or
the Administrative Agent, shall deliver such other documentation prescribed by
applicable law or reasonably requested by the Borrower or the Administrative
Agent as will enable the Borrower or the Administrative Agent to determine
whether or not such Lender is subject to backup withholding or information
reporting requirements.

       

      Without
limiting the generality of the foregoing, in the event that the Borrower is
resident for tax purposes in the United States, any Foreign Lender shall deliver
to the Borrower and the Administrative Agent (in such number of copies as shall
be requested by the recipient) on or prior to the date on which such Foreign
Lender becomes a Lender under this Agreement (and from time to time thereafter
upon the request of the Borrower or the Administrative Agent, but only if such
Foreign Lender is legally entitled to do so), whichever of the following is
applicable:

       

      (i) duly
completed copies of Internal Revenue Service Form W-8BEN claiming eligibility
for benefits of an income tax treaty to which the United States is a
party,

       

      (ii) duly
completed copies of Internal Revenue Service Form W-8ECI,

       

      (iii) in the
case of a Foreign Lender claiming the benefits of the exemption for portfolio
interest under section 881(c) of the Code, (x) a certificate to the
effect that such Foreign Lender is not (A) a "bank" within the meaning of
section 881(c)(3)(A) of the Code, (B) a "10 percent shareholder" of
the Borrower within the meaning of section 881(c)(3)(B) of the Code, or
(C) a "controlled foreign corporation" described in
section 881(c)(3)(C) of the Code and (y) duly completed copies of
Internal Revenue Service Form W-8BEN, or

       

      (iv) any other
form prescribed by applicable law as a basis for claiming exemption from or a
reduction in United States Federal withholding tax duly completed together with
such supplementary documentation as may be prescribed by applicable law to
permit the Borrower to determine the withholding or deduction required to be
made.

       

      (f) Treatment of Certain
Refunds.  If the Administrative Agent or any Lender determines,
in its good faith discretion, that it has received a refund of any Taxes or
Other Taxes as to which it has been indemnified by the Borrower or with respect
to which the Borrower has paid additional amounts pursuant to this Section, it
shall pay to the Borrower an amount equal to such refund (but only to the extent
of indemnity payments made, or additional amounts paid, by the Borrower under
this Section with respect to the Taxes or Other Taxes giving rise to such
refund), net of all reasonable out-of-pocket expenses of the Administrative
Agent or such Lender, as the case may be, and without interest (other than any
interest paid by the relevant Governmental Authority with respect to such
refund), provided that the
Borrower, upon the request of the Administrative Agent or such Lender, agrees to
repay the amount paid over to the Borrower (plus any penalties, interest or
other charges imposed by the relevant Governmental Authority) to the
Administrative Agent or such Lender in the event the Administrative Agent or
such Lender is required to repay such refund to such Governmental
Authority.  This subsection shall not be construed to require the
Administrative Agent or any Lender to make available its tax returns (or any
other information relating to its taxes that it deems confidential) to the
Borrower or any other Person.  The Administrative Agent and each
Lender agree to take such action as the Borrower may reasonably request in order
to apply for and obtain any refund or such amounts as the Borrower reasonably
determines to be appropriate under the circumstances, provided that any such
actions shall be at the sole cost and expense of the Borrower.

       

      Section
10.2 Increased
Costs.

       

      (a) Increased Costs
Generally.  If any Change in Law shall:

       

      (i) impose,
modify or deem applicable any reserve, special deposit, compulsory loan,
insurance charge or similar requirement against assets of, deposits with or for
the account of, or credit extended or participated in by, any
Lender;

       

      (ii) subject
any Lender to any tax of any kind whatsoever with respect to this Agreement, or
change the basis of taxation of payments to such Lender in respect thereof
(except for Indemnified Taxes or Other Taxes covered by Section 10.1 and
the imposition of, or any change in the rate of, any Excluded Tax payable by
such Lender); or

       

      (iii) impose on
any Lender any other condition, cost or expense affecting this
Agreement;

       

      and the
result of any of the foregoing shall be to reduce the amount of any sum received
or receivable by such Lender hereunder (whether of principal, interest or any
other amount) then, upon request of such Lender, the Borrower will pay to such
Lender such additional amount or amounts as will compensate such Lender for such
additional costs incurred or reduction suffered.

       

      (b) Capital
Requirements.  If any Lender determines that any Change in Law
affecting such Lender regarding capital requirements has or would have the
effect of reducing the rate of return on such Lender's capital or on the capital
of such Lender's holding company, if any, as a consequence of this Agreement,
the Commitment of such Lender or the Loans made by such Lender to a level below
that which such Lender or such Lender's holding company could have achieved but
for such Change in Law (taking into consideration such Lender's policies and the
policies of such Lender's holding company with respect to capital adequacy),
then from time to time the Borrower will pay to such Lender such additional
amount or amounts as will compensate such Lender or such Lender's holding
company for any such reduction suffered.

       

      (c) Certificates for
Reimbursement.  A certificate of a Lender setting forth in
reasonable detail the amount or amounts necessary to compensate such Lender or
its holding company, as the case may be, as specified in subsection (a)
or (b) of this
Section and delivered to the Borrower shall be conclusive absent manifest
error.  The Borrower shall pay such Lender the amount shown as due on
any such certificate within 10 days after receipt thereof.

       

      (d) Delay in
Requests.  Failure or delay on the part of any Lender to demand
compensation pursuant to the foregoing provisions of this Section shall not
constitute a waiver of such Lender's right to demand such compensation, provided that the
Borrower shall not be required to compensate a Lender pursuant to the foregoing
provisions of this Section for any increased costs incurred or reductions
suffered more than nine months prior to the date that such Lender notifies the
Borrower of the Change in Law giving rise to such increased costs or reductions
and of such Lender's intention to claim compensation therefor (except that, if
the Change in Law giving rise to such increased costs or reductions is
retroactive, then the nine-month period referred to above shall be extended to
include the period of retroactive effect thereof).

       

      Section
10.3 Mitigation Obligations;
Replacement of Lenders.

       

      (a) Designation of a Different
Lending Office.  If any Lender requests compensation under
Section 10.2, or
the Borrower is required to pay any additional amount to any Lender or any
Governmental Authority for the account of any Lender pursuant to Section 10.1,
then such Lender shall use reasonable efforts to designate a different lending
office for funding or booking its Loans hereunder or to assign its rights and
obligations hereunder to another of its offices, branches or affiliates, if, in
the judgment of such Lender, such designation or assignment (i) would
eliminate or reduce amounts payable pursuant to Section 10.1 or
10.2, as the
case may be, in the future, and (ii) in each case, would not subject such
Lender to any unreimbursed cost or expense and would not otherwise be
disadvantageous to such Lender.  The Borrower hereby agrees to pay all
reasonable costs and expenses incurred by any Lender in connection with any such
designation or assignment.

       

      (b) Replacement of
Lenders.  If any Lender requests compensation under Section 10.2, or
if the Borrower is required to pay any additional amount to any Lender or any
Governmental Authority for the account of any Lender pursuant to Section 10.1,
the Borrower may at its sole expense and effort, upon notice to such Lender and
the Administrative Agent, require such Lender to assign and delegate, without
recourse (in accordance with and subject to the restrictions contained in, and
consents required by, Section 11.11),
all of its interests, rights and obligations under this Agreement and the
related Loan Documents to an assignee that shall assume such obligations (which
assignee may be another Lender, if a Lender accepts such assignment), provided
that:

       

      (i) the
Administrative Agent shall have received the assignment fee specified in Section 11.11(b);

       

      (ii) such
Lender shall have received payment of an amount equal to the outstanding
principal of its Loans, accrued interest thereon, accrued fees and all other
amounts payable to it hereunder and under the other Loan Documents from the
assignee (to the extent of such outstanding principal and accrued interest and
fees) or the Borrower (in the case of all other amounts);

       

      (iii) in the
case of any such assignment resulting from a claim for compensation under Section 10.2 or
payments required to be made pursuant to Section 10.2,
such assignment will result in a reduction in such compensation or payments
thereafter; and

       

      (iv) such
assignment does not conflict with applicable laws.

       

      A Lender
shall not be required to make any such assignment or delegation if, prior
thereto, as a result of a waiver by such Lender or otherwise, the circumstances
entitling the Borrower to require such assignment and delegation cease to
apply.

       

      Section
10.4 Survival.  All
of the Borrower's obligations under this Article X shall
survive termination of the Commitments and repayment of all other Obligations
hereunder.

       

      ARTICLE
XI                                

       

      

       

      MISCELLANEOUS

       

      Section
11.1 Notices.  Any
notice or request required or permitted to be given under or in connection with
this Agreement, any Note or the other Loan Documents (except as may otherwise be
expressly required therein) shall be in writing and shall be mailed by first
class or express mail, postage prepaid, or sent by telex, telegram, telecopy or
other similar form of rapid transmission, confirmed by mailing (by first class
or express mail, postage prepaid) written confirmation at substantially the same
time as such rapid transmission, or personally delivered to any officer of the
receiving party.  All such communications shall be mailed, sent or
delivered to the parties hereto at their respective addresses as listed on each
parties' signature page hereto, or at such other addresses or to such
individual's or department's attention as any party may have furnished the other
party in writing.  Any communication so addressed and mailed shall be
deemed to be given when so mailed, except that Borrowing Requests, and
communications related thereto shall not be effective until actually received by
the Administrative Agent or the Borrower, as the case may be; and any notice so
sent by rapid transmission shall be deemed to be given when receipt of such
transmission is acknowledged, and any communication so delivered in person shall
be deemed to be given when receipted for by, or actually received by, an
authorized officer of the Borrower, the Administrative Agent, or any Lender as
the case may be.

       

      Section
11.2 Amendments,
Etc.  Neither this Agreement, any other Loan Document, nor any
terms hereof or thereof may be amended, supplemented or modified except in
accordance with the provisions of this Section 11.2.  The
Required Lenders and each Related Person party to the relevant Loan Document
may, or with the written consent of the Required Lenders, the Administrative
Agent and each Related Person party to the relevant Loan Document may, from time
to time, (a) enter into written amendments, supplements or modifications
hereto and to the other Loan Documents for the purpose of adding any provisions
to this Agreement or the other Loan Documents or changing in any manner the
rights of the Lenders or of the Related Persons hereunder or thereunder or
(b) waive, on such terms and conditions as the Required Lenders or the
Administrative Agent, as the case may be, may specify in such instrument, any of
the requirements of this Agreement or the other Loan Documents or any Default or
Event of Default and its consequences; provided, however, the written
consent of the Borrower, the Administrative Agent and all Lenders shall be
required to:

       

      (i) Extend
the final maturity of any Loan or postpone any regularly scheduled payment of
principal of any Loan or forgive all or any portion of the principal amount
thereof, or reduce the rate or extend the time of payment of interest or fees
thereon;

       

      (ii) Reduce
the percentage specified in the definition of Required Lenders;

       

      (iii) Extend
the Drawdown Termination Date, or reduce the amount of or extend the payment
date for the mandatory payments required under Section 2.5, or
increase the amount of the Aggregate Commitments or the Commitment of any Lender
hereunder;

       

      (iv) Amend
this Section 11.2;

       

      (v) Except as
provided herein or in the Security Agreement, release any
Collateral;

       

      (vi) Amend the
definition of "Unit Collateral Value', "Borrowing Base", "Applicable Margin",
"Applicable Advance Rate Percentage", or any provision in Section 2.2;

       

      (vii) Permit
the Borrower to assign its rights under this Agreement or amend or waive any
restriction on the Borrower's ability to assign its rights or obligations under
any of the Loan Documents;

       

      (viii) Amend the
definition of Applicable Sublimit;

       

      (ix) Amend or
waive any provision herein regarding the indemnification of the Administrative
Agent or any Lender; or

       

      (x) Amend or
waive any provision herein regarding the allocation among the Lenders of any
payments or proceeds received by the Administrative Agent
hereunder.

       

      No
amendment of any provision of this Agreement relating to the Administrative
Agent shall be effective without the written consent of the Administrative
Agent.  Any such waiver and any such amendment, supplement or
modification shall apply equally to each of the Lenders and shall be binding
upon the Related Persons, the Lenders, the Administrative Agent and all future
holders of the Loans.  In the case of any waiver, the Related Persons,
the Lenders and the Administrative Agent shall be restored to their former
position and rights hereunder and under the other Loan Documents, and any
Default or Event of Default waived shall be deemed to be cured and not
continuing; but no such waiver shall extend to any subsequent or other Default
or Event of Default, or impair any right consequent thereon.

       

      Section
11.3 CHOICE OF LAW;
VENUE.  THIS AGREEMENT SHALL BE GOVERNED BY THE LAWS OF THE
STATE OF TEXAS.  THE BORROWER AND LENDERS HEREBY AGREE THAT THE
OBLIGATIONS CONTAINED HEREIN ARE PERFORMABLE IN DALLAS COUNTY,
TEXAS.  ALL PARTIES HERETO AGREE THAT (I) ANY ACTION ARISING OUT
OF THIS TRANSACTION SHALL BE FILED IN DALLAS COUNTY, TEXAS, (II) VENUE FOR
ENFORCEMENT OF ANY OF THE OBLIGATIONS CONTAINED IN THIS AGREEMENT SHALL BE IN
DALLAS COUNTY, (III) PERSONAL JURISDICTION SHALL BE IN DALLAS COUNTY,
TEXAS, (IV) ANY ACTION OR PROCEEDING UNDER THIS AGREEMENT SHALL BE
COMMENCED AGAINST ANY PARTY IN DALLAS COUNTY, (V) SUCH ACTION SHALL BE
INSTITUTED IN THE COURTS OF THE STATE OF TEXAS LOCATED IN DALLAS COUNTY, TEXAS
OR IN THE UNITED STATES DISTRICT COURT FOR THE NORTHERN DISTRICT OF TEXAS
LOCATED IN DALLAS COUNTY, TEXAS, AT THE OPTION OF THE ADMINISTRATIVE AGENT, AND
(VI) THE BORROWER AND THE LENDERS HEREBY WAIVE ANY OBJECTION TO THE VENUE
OF ANY SUCH SUIT, ACTION OR PROCEEDING AND ADDITIONALLY WAIVE ANY RIGHT EACH MAY
HAVE TO BE SUED ELSEWHERE.  NOTHING HEREIN SHALL AFFECT THE RIGHT OF
THE ADMINISTRATIVE AGENT TO ACCOMPLISH SERVICE OF PROCESS IN ANY MANNER
PERMITTED BY LAW.

       

      Section
11.4 Invalidity.  In
the event that any one or more of the provisions contained in any Note, this
Agreement or any other Loan Document shall, for any reason, be held invalid,
illegal or unenforceable in any respect, such invalidity, illegality or
unenforceability shall not affect any other provision of such
document.

       

      Section
11.5 Survival of
Agreements.  All covenants and agreements herein and in any
other Loan Document not fully performed before the date hereof or the date
thereof, and all representations and warranties herein or therein, shall survive
until payment in full of the Obligations and termination of the
Commitments.

       

      Section
11.6 Renewal, Extension or
Rearrangement.  All provisions of this Agreement and of the
other Loan Documents shall apply with equal force and effect to each promissory
note hereafter executed which in whole or in part represents a renewal,
extension for any period, increase or rearrangement of any part of the
Obligations originally represented by the Notes or of any part of such other
Obligations.

       

      Section
11.7 Waivers.  No
course of dealing on the part of the Administrative Agent or any Lender, or any
of their officers, employees, consultants or agents, nor any failure or delay by
the Administrative Agent or any Lender with respect to exercising any right,
power or privilege of Lender under any Note, this Agreement or any other Loan
Document shall operate as a waiver thereof, except as otherwise provided in
Section 11.2
hereof.

       

      Section
11.8 Cumulative
Rights.  The rights and remedies of the Administrative Agent
and each Lender under the Notes, this Agreement, and any other Loan Document
shall be cumulative, an the exercise or partial exercise of any such right or
remedy shall not preclude the exercise of any other right or
remedy.

       

      Section
11.9 Limitation on
Interest.  Each Lender, each Related Person and any other
parties to the Loan Documents intend to contract in strict compliance with
applicable usury Law from time to time in effect.  In furtherance
thereof such Persons stipulate and agree that none of the terms and provisions
contained in the Loan Documents shall ever be construed to create a contract to
pay, for the use, forbearance or detention of money, interest in excess of the
maximum amount of interest permitted to be charged by applicable Law from time
to time in effect.  Neither each Related Person nor any present or
future guarantors, endorsers, or other Persons hereafter becoming liable for
payment of any Obligation shall ever be liable for unearned interest thereon or
shall ever be required to pay interest thereon in excess of the maximum amount
that may be lawfully charged under applicable Law from time to time in effect,
and the provisions of this section shall control over all other provisions of
the Loan Documents which may be in conflict or apparent conflict
herewith.  Each Lender expressly disavows any intention to charge or
collect excessive unearned interest or finance charges in the event the maturity
of any Obligation is accelerated.  If (a) the maturity of any
Obligation is accelerated for any reason, (b) any Obligation is prepaid and
as a result any amounts held to constitute interest are determined to be in
excess of the legal maximum, or (c) any Lender or any other holder of any
or all of the Obligations shall otherwise collect moneys which are determined to
constitute interest which would otherwise increase the interest on any or all of
the Obligations to an amount in excess of that permitted to be charged by
applicable Law then in effect, then all such sums determined to constitute
interest in excess of such legal limit shall, without penalty, be promptly
applied to reduce the then outstanding principal of the related Obligations or,
at such Lender's or such holder's option, promptly returned to each Related
Person or the other payor thereof upon such determination.  In
determining whether or not the interest paid or payable, under any specific
circumstance, exceeds the maximum amount permitted under applicable Law, each
Lender and each Related Persons (and any other payors thereof) shall to the
greatest extent permitted under applicable Law, (i) characterize any
non-principal payment as an expense, fee or premium rather than as interest,
(ii) exclude voluntary prepayments and the effects thereof, and
(iii) amortize, prorate, allocate, and spread the total amount of interest
throughout the entire contemplated term of the instruments evidencing the
Obligations in accordance with the amounts outstanding from time to time
thereunder and the maximum legal rate of interest from time to time in effect
under applicable Law in order to lawfully charge the maximum amount of interest
permitted under applicable Law.  In the event applicable Law provides
for an interest ceiling under Section 303 of the Texas Finance Code, that
ceiling shall be the weekly ceiling.

       

      Section
11.10 Bank Accounts;
Offset.  To sure the repayment of the Obligations, each Related
Person hereby grants to each Lender and its successors and assigns (in this
section called an "Assignee")
a security interest, a lien, and a right of offset, each of which shall be in
addition to all other interests, liens, and rights of any Lender or Assignee at
common law, under the Loan Documents, or otherwise, and each of which shall be
upon and against (a) any and all moneys, securities or other property (and
the proceeds therefrom) of any Related Person now or hereafter held or received
by or in transit to any Lender, any Lender or Assignee from or for the account
any Related Person, whether for safekeeping, custody pledge, transmission,
collection or otherwise, (b) any and all deposits (general or special, time
or demand, provisional or final) of any Related Person with any Lender or any
Assignee, and (c) any other credits and claims of any Related Person at any
time existing against any Lender or any Assignee, including claims under
certificates of deposit.  During the existence of any Event of
Default, each Lender and each Assignee is hereby authorized to foreclose upon,
offset, appropriate, and apply, at any time and from time to time, without
notice to the Borrower, any and all items hereinabove referred to against the
Obligations then due and payable.

       

      If any
Lender, whether by setoff or otherwise, has payment made to it upon its Loans in
a greater proportion than that received by any other Lender, such Lender agrees,
promptly upon demand, to purchase a portion of the Loans held by the other
Lenders so that after such purchase each Lender will hold its ratable proportion
of Loans.  If any Lender whether in connection with setoff or amounts
which might be subject to setoff or otherwise, receives collateral or other
protection for its Obligations or such amounts which may be subject to setoff,
such Lender agrees, promptly upon demand, to take such action necessary such
that all Lenders share in the benefits of such collateral ratably in proportion
to their Loans.  In case any such payment is distributed by legal
process, or otherwise, appropriate further adjustments shall be
made.

       

      Section
11.11 Assignments.

       

      (a) Successors and
Assigns.  The terms and provisions of the Loan Documents shall
be binding upon and inure to the benefit of the Borrower and the Lenders and
their respective successors and assigns, except that (i) the Borrower shall
not have the right to assign its rights or obligations under the Loan Documents
and (ii) an assignment by any Lender must be made in compliance with Section 11.11(b).  The
parties to this Agreement acknowledge that clause (ii) of this Section 11.11(a)
relates only to absolute assignments and does not prohibit assignments creating
security interests, including, without limitation, any pledge or assignment by
any Lenders creating security interests, including, without limitation, any
pledge or assignment by any Lender of all or any portion of its rights under
this Agreement and any Note to a Federal Reserve Bank; provided, however, that no such
pledge or assignment creating a security interest shall release the transferor
Lender from its obligations hereunder unless and until the parties hereto have
complied with the provisions of Section 11.11(b).  The
Administrative Agent may treat the Person which made any Loan or which holds any
Note as the owner thereof for all purposes hereof unless and until such Person
complies with Section 11.11(b),
provided, however, that the
Administrative Agent may in its discretion (but shall not be required to) follow
instructions form the Person which made any Loan or which holds any Note to
direct payments relating to such Loan or Note to another Person.  Any
assignee of the rights to any Loans or any Note agrees by acceptance of such
transfer or assignment to be bound by all the terms and provisions of the Loan
Documents.  Any request, authority or consent of any Person, who at
the time of making such request or giving such authority or consent is the owner
of the rights to any Loan (whether or not a Note has been issued in evidence
thereof), shall be conclusive and binding on any subsequent holder, or assignee
of the rights to such Loan.

       

      (b) Assignments.

       

      (i) Permitted
Assignments.  Any Lender may, in the ordinary course of its
business and in accordance with applicable law, at any time assign to one or
more banks or other entities ("Purchasers")
all or any part of its rights and obligations under the Loan
Documents.  The consent of the Borrower and the Administrative Agent,
which shall not be unreasonably withheld or delayed, shall be required prior to
any assignment becoming effective, provided, however, that if a
Default or Event of Default has occurred and is continuing, the consent of the
Borrower shall not be required, and provided, further, however, that the
consent of neither the Borrower nor the Administrative Agent shall be required
if the Purchaser is (i) a Lender, (ii) an Affiliate of a Lender, or
(iii) a successor by merger to a Lender.  Each such assignment
shall (unless it is to a Lender or an Affiliate thereof or each of the Borrower
and the Administrative Agent otherwise consents) be in an amount not less than
the lesser of (i) $5,000,000 or (ii) the remaining amount of the
assigning Lender's Commitment (calculated as of the date of such
assignment).

       

      (ii) Effect; Effective
Date.  Upon delivery to the Administrative Agent by the
transferor Lender of a notice of assignment (the "Notice of
Assignment"), together with any consents required by Section 11.11(b)(i)
and payment of a $3,500 fee to the Administrative Agent for processing such
assignment, such assignment shall become effective on the effective date
specified in such Notice of Assignment, provided, however, that no fee
shall be due to the Administrative Agent for an assignment by a Lender to an
Affiliate thereof.  The Notice of Assignment shall contain a
representation by the Purchaser to the effect that none of the consideration
used to make the purchase of the Commitment and Loans under the applicable
assignment agreement are "plan assets" as defined under ERISA and that the
rights and interests of the Purchaser in and under the Loan Documents will not
be "plan assets" under ERISA.  On and after the effective date of such
assignment, such Purchaser shall for all purposes be a Lender party to this
Agreement and any other Loan Document executed by or on behalf of the Lenders
and shall have all the rights and obligations of a Lender under the Loan
Documents, to the same extent as if it were an original party hereto, and no
further consent or action by the Borrower, the Lenders or the Administrative
Agent shall be required to release the transferor Lender with respect to the
percentage of the Commitments and Loans assigned to such
Purchaser.  Upon the consummation of any assignment to a Purchaser
pursuant to this Section 11.11(b),
the transferor Lender, the Administrative Agent and the Borrower shall, if the
transferor Lender or the Purchaser desires that its Loans be evidenced by Notes,
make appropriate arrangements so that new Notes or, as appropriate replacement
Notes are issued to such transferor Lender and new Notes or, as appropriate,
replacement Notes, are issued to such Purchaser, in each case in principal
amounts reflecting their respective Commitments, as adjusted pursuant to such
assignment.  In addition, within a reasonable time after the effective
date of any assignment, the Administrative Agent shall, and is hereby authorized
and directed to, revise Schedule 1.1
reflecting the revised Commitments and Commitment Percentages of each of the
Lenders and shall distribute such revised Schedule 1.1 to
each of the Lenders and the Borrower, whereupon such revised Schedule shall
replace the old Schedule and become part of this Agreement.

       

      (c) Distribution of
Information.  It is understood and agreed that the
Administrative Agent and each Lender may provide to assignees and prospective
assignees financial information and reports and data concerning the Borrower's
properties and operations which was provided to the Administrative Agent and
such Lender pursuant to this Agreement.

       

      Section
11.12 Exhibits.  The
exhibits attached to this Agreement are incorporated herein and shall be
considered a part of this Agreement for the purposes stated herein, except that
in the event of any conflict between any of the provisions of such exhibits and
the provisions of this Agreement, the provisions of this Agreement shall
prevail.

       

      Section
11.13 Titles of Articles, Sections
and Subsections.  All titles or headings to articles, sections,
subsections or other divisions of this Agreement or the exhibits hereto are only
for the convenience of the parties and shall not be construed to have any effect
or meaning with respect to the other content of such articles, sections,
subsections or other divisions, such other content being controlling as to the
agreement between the parties hereto.

       

      Section
11.14 Counterparts;
Fax.  This Agreement may be executed in counterparts, and it
shall not be necessary that the signatures of both of the parties hereto be
contained on any one counterpart hereof, each counterpart shall be deemed an
original, but all counterparts together shall constitute one and the same
instrument.  This Agreement may be duly executed by facsimile or other
electronic transmission.

       

      Section
11.15 Termination; Limited
Survival.  In its sole and absolute discretion the Borrower may
at any time that no Obligations are owing elect in a notice delivered to the
Administrative Agent and Lenders to terminate this Agreement.  Upon
receipt by the Administrative Agent and the Lenders of such a notice, if no
Obligations are then owing, this Assignment and all other Loan Documents shall
thereupon be terminated and the parties thereto released from all prospective
obligations thereunder.  Notwithstanding the foregoing or anything
herein to the contrary, any waivers or admissions made by any Person in any Loan
Documents, any Obligations, and any obligations which any Person may have to
indemnify or compensate the Administrative Agent or any Lender shall survive any
termination of this Agreement or any other Loan Document.  At the
request and expense of the Borrower, the Administrative Agent and Lenders shall
prepare and execute all necessary instruments to reflect and effect such
termination of the Loan Documents.

       

      Section
11.16 Joint and Several
Liability.  All obligations which are incurred by two or more
Related Persons shall be their joint and several obligations and
liabilities.

       

      Section
11.17 Disclosures.  The
Administrative Agent and any Lender may disclose to, and exchange and discuss
with, any other Person any information concerning the Collateral of the Borrower
or any Subsidiary (whether received by the Administrative Agent, any Lender or
any other Person) for the purpose of (a) complying with Government
Requirements or any legal proceedings, (b) protecting or preserving the
Collateral, (c) protecting, preserving, exercising or enforcing any of
their rights in, under or related to the Collateral or the Loan Documents,
(d) performing any of their obligations under or related to the Loan
Documents, or (e) consulting with respect to any of the foregoing
matters.

       

      Section
11.18 Time is of the
Essence.  Time is of the essence with respect to the
performance of the obligations contained in this Agreement.

       

      Section
11.19 USA Patriot Act
Notice.  Each Lender hereby notifies the Borrower that pursuant
to the requirements of the USA Patriot Act (Title III of Pub.
L. 107-56 (signed into law October 26, 2003)) (the "Act"), it
is required to obtain, verify and record information that identifies the
Borrower, which information includes the name and address of the Borrower and
other information that will allow such Lender to identify the Borrower in
accordance with the Act.

       

      Section
11.20 Electronic
Transactions.  The Borrower hereby affirmatively consents and
agrees to permit the Administrative Agent and the Lenders and their successors
and assigns to enter into transactions with the Borrower involving "electronic
records" and "electronic means", as those terms are defined in UETA and the
E-Sign Act.

       

      Section
11.21 No
Reliance.  In executing this Agreement, the Borrower warrants
and represents that the Borrower is not relying on any statement or
representation other than those in this Agreement and is relying upon its own
judgment and advice of its attorneys.

       

      Section
11.22 WAIVER OF JURY
TRIAL.  EACH OF THE PARTIES HERETO WAIVES, TO THE MAXIMUM
EXTENT PERMITTED BY APPLICABLE LAW, ITS RESPECTIVE RIGHTS TO A TRIAL BY JURY OF
ANY CLAIM OR CAUSE OF ACTION BASED UPON OR ARISING OUT OF OR RELATED TO THIS
AGREEMENT, THE OTHER LOAN DOCUMENTS OR THE TRANSACTIONS CONTEMPLATED HEREBY OR
THEREBY IN ANY ACTION, PROCEEDING OR OTHER LITIGATION OF ANY TYPE BROUGHT BY ANY
OF THE PARTIES AGAINST ANY OTHER PARTY, WHETHER WITH RESPECT TO CONTRACT CLAIMS
TORT CLAIMS, OR OTHERWISE.  EACH OF THE PARTIES HERETO AGREES THAT ANY
SUCH CLAIM OR CAUSE OF ACTION SHALL BE TRIED BY A COURT TRIAL WITHOUT A
JURY.  WITHOUT LIMITING THE FOREGOING, THE PARTIES FURTHER AGREE THAT
THEIR RESPECTIVE RIGHT TO A TRIAL BY JURY IS WAIVED BY OPERATION OF THIS SECTION
AS TO ANY ACTION, COUNTERCLAIM OR OTHER PROCEEDING WHICH SEEKS, IN WHOLE OR IN
PART, TO CHALLENGE THE VALIDITY OR ENFORCEABILITY OF THIS AGREEMENT OR ANY OTHER
LOAN DOCUMENT OR ANY PROVISION HEREOF OR THEREOF.  THIS WAIVER SHALL
APPLY TO ANY SUBSEQUENT AMENDMENTS, RENEWALS, SUPPLEMENTS OR MODIFICATIONS TO
THIS AGREEMENT AND ANY OTHER LOAN DOCUMENTS.

       

      Section
11.23 CONSEQUENTIAL
DAMAGES.  NEITHER THE BORROWER, THE ADMINISTRATIVE AGENT NOR
ANY LENDER SHALL HAVE ANY LIABILITY WITH RESPECT TO, AND EACH SUCH PERSON HEREBY
WAIVES, RELEASES AND AGREES NOT TO SUE EACH OTHER SUCH PERSON FOR, ANY SPECIAL,
INDIRECT OR CONSEQUENTIAL DAMAGES SUFFERED BY SUCH OTHER PERSON IN CONNECTION
WITH ANY CLAIM RELATED TO THE LOAN DOCUMENTS OR THE TRANSACTIONS CONTEMPLATED
HEREIN.

       

      Section
11.24 ENTIRE
AGREEMENT.  THE NOTES, THIS AGREEMENT, AND THE OTHER LOAN
DOCUMENTS REPRESENT THE FINAL AGREEMENT BETWEEN THE PARTIES HERETO AND THERETO
AND MAY NOT BE CONTRADICTED BY EVIDENCE OF PRIOR, CONTEMPORANEOUS OR SUBSEQUENT
ORAL AGREEMENTS OF THE PARTIES.  THERE ARE NO UNWRITTEN ORAL
AGREEMENTS BETWEEN THE PARTIES.

       

      [THE
REMAINDER OF THIS PAGE IS INTENTIONALLY LEFT BLANK]

       

      
        
           

        

        
           

          
            

          

        

        
           

        

      

      IN
WITNESS WHEREOF, the parties hereto have caused this instrument to be duly
executed as of the date first above written.

       

      BORROWER:                                                                           M/I FINANCIAL
CORP.,

       

      an Ohio corporation

       

      Borrower's
Address

       

      3 Easton
Oval

       

      Columbus,
Ohio 43219

       

      Attention:    
Phillip G. Creek

       

      Fax:            
(614) 418-8080

       

      Telephone:   (614)
418-8011

       

      By:                           

       

      Phillip G. Creek

       

      Chief Financial Officer and
Treasurer

       

      

       

      STATE OF
OHIO                                                      §

       

      §

       

      COUNTY OF
FRANKLIN                                                                §

       

      Before
me, the undersigned notary public, on this ___ day of May, 2008, personally
appeared Phillip G. Creek, the Chief Financial Officer and Treasurer of M/I
Financial Corp., an Ohio corporation, known to me (or proved to me by the
production of a driver's license as identification) to be the person whose name
is subscribed to the foregoing instrument and acknowledged to me that he
executed the same on behalf of said corporation for the purposes and
consideration therein expressed.

       

      

       

      

      Notary
Public – State of Ohio

      

       

      My
Commission
Expires:                                                                           __________________________________________

       

      ______________________                                                                                     Printed
Name of Notary

       

      
        
           

        

        
           

          
            

          

        

        
           

        

      

      ADMINISTRATIVE
AGENT:                                                                                     GUARANTY
BANK,

       

      a Federal savings bank

       

      Address

       

      8333
Douglas Avenue, 11th Floor

       

      Dallas,
Texas 75225

       

      Attention:   Ross
Evans

       

      Fax:           (214)
360-4892

       

      Tel:           
(214) 360-2672

       

      By:           

       

      Name:                              

       

      Title:                              

       

      
        
           

        

        
           

          
            

          

        

        
           

        

      

      LENDER:                                                                           GUARANTY
BANK,

       

      a Federal savings bank,

       

      Address                                                                as
a Lender

       

      8333
Douglas Avenue, 11th Floor

       

      Dallas,
Texas 75225

       

      Attention:    Ross
Evans

       

      Fax:           (214)
360-4892

       

      Tel:           (214)
360-2672

       

      By:           

       

      Name:                                  

       

      Title:Exhibit 4.1

                               INDENTURE OF TRUST

                                 by and between

                        NELNET STUDENT LOAN TRUST 2008-4

                                       and

                           ZIONS FIRST NATIONAL BANK,
                    as Trustee and as Eligible Lender Trustee

                             Dated as of May 1, 2008

<PAGE>

                        NELNET STUDENT LOAN TRUST 2008-4

        Reconciliation and tie between Trust Indenture Act of 1939, as amended
(the "Trust Indenture Act") and Indenture of Trust, dated as of May 1, 2008.

          TRUST INDENTURE ACT SECTION                 INDENTURE SECTION
Section 310(a)(1)                                            7.23
310(a)(2)                                                    7.23
310(b)                                                       7.23, 7.09
Section 311(a)                                               7.08
311(b)                                                       7.08
Section 312(b)                                               9.16
312(c)                                                       9.16
Section 313(a)                                               4.15
313(b)                                                       4.15
313(c)                                                       4.15, 6.15
Section 314(a)(1)                                            4.15
314(a)(2)                                                    4.15
314(a)(3)                                                    4.15
314(a)(4)                                                    4.16
314(c)                                                       2.02, 5.08
314(d)(1)                                                    5.08
Section 315(b)                                               6.15
Section 317(a)(1)                                            4.17, 6.10
317(a)(2)                                                    7.24
Section 318(a)                                               9.09
318(c)                                                       9.09

--------------------
NOTE:  This  reconciliation  and tie shall not, for any  purpose,  be deemed to
be a part of the Indenture.

        Attention should also be directed to Section 318(c) of the Trust
Indenture Act, which provides that the provisions of Sections 310 to and
including 317 of the Trust Indenture Act are a part of and govern every
qualified indenture, whether or not physically contained therein.

<PAGE>

                                    ARTICLE I

DEFINITIONS AND USE OF PHRASES.................................................3

                                   ARTICLE II
                         NOTE DETAILS AND FORM OF NOTES

Section 2.01.    Note Details.................................................25
Section 2.02.    Execution, Authentication and Delivery of Notes..............25
Section 2.03.    Registration, Transfer and Exchange of Notes; Persons
                 Treated as Registered Owners.................................25
Section 2.04.    Lost, Stolen, Destroyed and Mutilated Notes..................26
Section 2.05.    Trustee's Authentication Certificate.........................27
Section 2.06.    Cancellation and Destruction of Notes by the Trustee.........27
Section 2.07.    Temporary Notes..............................................27
Section 2.08.    Issuance of Notes............................................27
Section 2.09.    Definitive Notes.............................................28
Section 2.10.    Payment of Principal and Interest............................28
Section 2.11.    Notices to Clearing Agency...................................29

                                   ARTICLE III
                 PARITY AND PRIORITY OF LIEN; OTHER OBLIGATIONS;
                            AND DERIVATIVE PRODUCTS

Section 3.01.     Parity and Priority of Lien.................................29
Section 3.02.     Other Obligations...........................................29
Section 3.03.     Derivative Products; Counterparty Payments;
                  Issuer Derivative Payments..................................30

                                   ARTICLE IV
            PROVISIONS APPLICABLE TO THE NOTES; DUTIES OF THE ISSUER

Section 4.01.    Payment of Principal and Interest............................30
Section 4.02.    Covenants as to Additional Conveyances.......................30
Section 4.03.    Further Covenants of the Issuer..............................31
Section 4.04.    Enforcement of Master Servicing Agreement and Subservicing
                 Agreements...................................................32
Section 4.05.    Procedures for Transfer of Funds.............................33
Section 4.06.    Additional Covenants with Respect to the Higher
                 Education Act................................................33
Section 4.07.    Financed Eligible Loans; Collections Thereof;
                 Assignment Thereof...........................................35
Section 4.08.    Appointment of Agents, Direction to Trustee, Etc.............35
Section 4.09.    Capacity to Sue..............................................35
Section 4.10.    Continued Existence; Successor to Issuer.....................35
Section 4.11.    Amendment of Student Loan Purchase Agreements................36
Section 4.12.    Representations; Negative Covenants..........................36
Section 4.13.    Additional Covenants.........................................41
Section 4.14.    Providing of Notice..........................................43
Section 4.15.    Certain Reports..............................................43
Section 4.16.    Statement as to Compliance...................................44
Section 4.17.    Representations of the Issuer Regarding the Trustee's
                 Security Interest............................................44
Section 4.18.    Further Covenants of the Issuer Regarding the Trustee's
                 Security Interest............................................45
Section 4.19.    Borrower Incentive Programs..................................45
Section 4.20.    Statements to Noteholders....................................46

                                       i
<PAGE>

                                    ARTICLE V
                                      FUNDS

Section 5.01.    Creation and Continuation of Funds and Accounts..............46
Section 5.02.    Acquisition Fund.............................................46
Section 5.03.    Capitalized Interest Fund....................................48
Section 5.04.    Collection Fund..............................................48
Section 5.05.    Reserve Fund.................................................53
Section 5.06.    Department Rebate Fund.......................................54
Section 5.07.    Investment of Funds Held by Trustee..........................54
Section 5.08.    Release......................................................55

                                   ARTICLE VI
                              DEFAULTS AND REMEDIES

Section 6.01.    Events of Default Defined....................................56
Section 6.02.    Remedy on Default; Possession of Trust Estate................57
Section 6.03.    Remedies on Default; Advice of Counsel.......................58
Section 6.04.    Remedies on Default; Sale of Trust Estate....................58
Section 6.05.    Appointment of Receiver......................................59
Section 6.06.    Restoration of Position......................................59
Section 6.07.    Application of Sale Proceeds.................................60
Section 6.08.    Acceleration of Maturity; Rescission and Annulment...........60
Section 6.09.    Remedies Not Exclusive.......................................60
Section 6.10.    Collection of Indebtedness and Suits for Enforcement
                 by Trustee...................................................61
Section 6.11.    Direction of Trustee.........................................61
Section 6.12.    Right to Enforce in Trustee..................................62
Section 6.13.    Physical Possession of Obligations Not Required..............62
Section 6.14.    Waivers of Events of Default.................................62
Section 6.15.    Notice of Defaults...........................................63

                                   ARTICLE VII
                                   THE TRUSTEE

Section 7.01.    Acceptance of Trust..........................................63
Section 7.02.    Recitals of Others...........................................64
Section 7.03.    As to Filing of Indenture....................................64
Section 7.04.    Trustee May Act Through Agents...............................64
Section 7.05.    Indemnification of Trustee...................................65
Section 7.06.    Trustee's Right to Reliance..................................66
Section 7.07.    Compensation of Trustee......................................66
Section 7.08.    Creditor Relationships.......................................67
Section 7.09.    Resignation of Trustee.......................................67
Section 7.10.    Removal of Trustee...........................................67
Section 7.11.    Successor Trustee............................................68
Section 7.12.    Manner of Vesting Title in Trustee...........................68
Section 7.13.    Additional Covenants by the Trustee to Conform to the
                 Higher Education Act.........................................68
Section 7.14.    Right of Inspection..........................................69
Section 7.15.    Limitation with Respect to Examination of Reports............69
Section 7.16.    Servicing Agreements.........................................69
Section 7.17.    Additional Covenants of Trustee..............................69
Section 7.18.    Notices to Rating Agencies...................................69
Section 7.19.    Merger of the Trustee........................................70
Section 7.20.    Receipt of Funds from Master Servicer or a Subservicer.......70
Section 7.21.    Special Circumstances Leading to Resignation of Trustee......70
Section 7.22.    Survival of Trustee's Rights to Receive Compensation,
                 Reimbursement and Indemnification............................71
Section 7.23.    Corporate Trustee Required; Eligibility; Conflicting
                 Interests....................................................71
Section 7.24.    Trustee May File Proofs of Claim.............................71
Section 7.25.    No Petition..................................................72

                                       ii
<PAGE>

                                  ARTICLE VIII
                             SUPPLEMENTAL INDENTURES

Section 8.01.    Supplemental Indentures Not Requiring Consent of
                 Registered Owners............................................72
Section 8.02.    Supplemental Indentures Requiring Consent of
                 Registered Owners............................................73
Section 8.03.    Additional Limitation on Modification of Indenture...........74
Section 8.04.    Conformity with the Trust Indenture Act......................74

                                   ARTICLE IX
                               GENERAL PROVISIONS

Section 9.01.    Notices......................................................75
Section 9.02.    Covenants Bind Issuer........................................76
Section 9.03.    Lien Created.................................................76
Section 9.04.    Severability of Lien.........................................76
Section 9.05.    Consent of Registered Owners Binds Successors................76
Section 9.06.    Nonliability of Persons; No General Obligation...............77
Section 9.07.    Nonpresentment of Notes or Interest Checks...................77
Section 9.08.    Security Agreement...........................................77
Section 9.09.    Laws Governing...............................................77
Section 9.10.    Severability.................................................77
Section 9.11.    Exhibits.....................................................78
Section 9.12.    Non-Business Days............................................78
Section 9.13.    Parties Interested Herein....................................78
Section 9.14.    Obligations Are Limited Obligations..........................78
Section 9.15.    Limitations on Counterparty Rights...........................78
Section 9.16.    Disclosure of Names and Addresses of Registered Owners.......78
Section 9.17.    Aggregate Principal Amount of Obligations....................79
Section 9.18.    Financed Eligible Loans......................................79
Section 9.19.    Concerning the Delaware Trustee..............................79

                                    ARTICLE X
         PAYMENT AND CANCELLATION OF NOTES AND SATISFACTION OF INDENTURE

Section 10.01.   Trust Irrevocable............................................79
Section 10.02.   Satisfaction of Indenture....................................80
Section 10.03.   Optional Purchase of All Financed Eligible Loans.............81
Section 10.04.   Auction of Financed Eligible Loans...........................82
Section 10.05.   Cancellation of Paid Notes...................................82

EXHIBIT A        ELIGIBLE LOAN ACQUISITION CERTIFICATE
EXHIBIT B-1      FORM OF CLASS A-1 NOTE
EXHIBIT B-2      FORM OF CLASS A-2 NOTE
EXHIBIT B-3      FORM OF CLASS A-3 NOTE
EXHIBIT B-4      FORM OF CLASS A-4 NOTE
EXHIBIT B-5      FORM OF CLASS B NOTE
EXHIBIT C        FORM OF ADMINISTRATOR'S MONTHLY SERVICING PAYMENT DATE
                 CERTIFICATE
EXHIBIT D        FORM OF ADMINISTRATOR'S QUARTERLY DISTRIBUTION DATE CERTIFICATE
EXHIBIT E        REPORT TO REGISTERED OWNERS

                                       iii
<PAGE>

                               INDENTURE OF TRUST

        THIS INDENTURE OF TRUST, dated as of May 1, 2008 (this "Indenture"), is
by and between NELNET STUDENT LOAN TRUST 2008-4 (the "Issuer"), a statutory
trust duly organized and existing under the laws of the State of Delaware (the
"State"), and ZIONS FIRST NATIONAL BANK, a national banking association duly
organized and operating under the laws of the United States of America, as
trustee hereunder (together with its successors, the "Trustee") and as eligible
lender trustee (together with its successors, the "Eligible Lender Trustee")
under the Eligible Lender Trust Agreement (all capitalized terms used in these
preambles, recitals and granting clauses shall have the same meanings assigned
thereto in Article I hereof).

                              W I T N E S S E T H :

        WHEREAS, the Issuer represents that it is duly created as a statutory
trust under the laws of the State and that by proper action has duly authorized
the execution and delivery of this Indenture, which Indenture provides for the
payment of student loan asset-backed notes (the "Notes") and the payments to any
Counterparty; and

        WHEREAS, this Indenture is subject to the provisions of the Trust
Indenture Act of 1939, as amended (the "Trust Indenture Act"), that are deemed
to be incorporated into this Indenture and shall, to the extent applicable, be
governed by such provisions; and

        WHEREAS, the Trustee has agreed to accept the trusts herein created upon
the terms herein set forth; and

        WHEREAS, it is hereby agreed between the parties hereto, the Registered
Owners of the Notes (the Registered Owners evidencing their consent by their
acceptance of the Notes) and any Counterparty (the Counterparty evidencing its
consent by its execution and delivery of a Derivative Product) that in the
performance of any of the agreements of the Issuer herein contained, any
obligation it may thereby incur for the payment of money shall not be general
debt on its part, but shall be secured by and payable solely from the Trust
Estate, payable in such order of preference and priority as provided herein;

        NOW, THEREFORE, the Issuer, and as applicable the Eligible Lender
Trustee, in consideration of the premises and acceptance by the Trustee of the
trusts herein created, of the purchase and acceptance of the Notes by the
Registered Owners thereof, of the execution and delivery of any Derivative
Product by a Counterparty and the Issuer and the acknowledgement thereof by the
Trustee, of the acknowledgement by the Trustee of the Granting Clauses set forth
herein, and for other good and valuable consideration, the receipt and
sufficiency of which are hereby acknowledged, do hereby GRANT, CONVEY, PLEDGE,
TRANSFER, ASSIGN AND DELIVER to the Trustee, for the benefit of the Registered
Owners of the Notes and any Counterparty (to secure the payment of any and all
amounts which may from time to time become due and owing to a Counterparty
pursuant to any Derivative Product), all of the moneys, rights and properties
described in the granting clauses A through F below (the "Trust Estate"), as
follows:

<PAGE>

                                GRANTING CLAUSE A

        The Available Funds (other than moneys released from the lien of the
Trust Estate as provided herein);

                                GRANTING CLAUSE B

        All moneys and investments held in the Funds and Accounts created under
Section 5.01 hereof, including all proceeds thereof and all income thereon;

                                GRANTING CLAUSE C

        The Financed Eligible Loans (other than Financed Eligible Loans released
from the lien of the Trust Estate as provided herein) and all obligations of the
obligors thereunder including all moneys accrued and paid thereunder on or after
the Cutoff Date;

                                GRANTING CLAUSE D

        The rights of the Issuer and/or the Eligible Lender Trustee, as
applicable, in and to the Eligible Lender Trust Agreement, the Master Servicing
Agreement, any Subservicing Agreement, any Student Loan Purchase Agreement, the
Administration Agreement, any Custodian Agreement and the Guarantee Agreements
as the same relate to the Financed Eligible Loans;

                                GRANTING CLAUSE E

        The rights of the Issuer in and to any Derivative Product; provided,
however, that this Granting Clause E shall not be for the benefit of a
Counterparty with respect to its Derivative Product; and

                                GRANTING CLAUSE F

        All proceeds from any property described in these Granting Clauses and
any and all other property, rights and interests of every kind or description
that from time to time hereafter is granted, conveyed, pledged, transferred,
assigned or delivered to the Trustee as additional security hereunder.

        TO HAVE AND TO HOLD the Trust Estate, whether now owned or held or
hereafter acquired, unto the Trustee and its successors or assigns;

        IN TRUST NEVERTHELESS, upon the terms and trusts herein set forth for
the equal and proportionate benefit and security of all present and future
Registered Owners of the Notes, without preference of any Note over any other,
except as provided herein, and for enforcement of the payment of the Notes in
accordance with their terms, and all other sums payable hereunder (including
payments due and payable to any Counterparty) or on the Notes, and for the
performance of and compliance with the obligations, covenants and conditions of
this Indenture, as if all the Notes and other Obligations (as defined herein) at
any time Outstanding had been executed and delivered simultaneously with the
execution and delivery of this Indenture;

                                       2
<PAGE>

        PROVIDED, HOWEVER, that if the Issuer, its successors or assigns, shall
well and truly pay, or cause to be paid, the principal of the Notes and the
interest due and to become due thereon, or provide fully for payment thereof as
herein provided, at the times and in the manner mentioned in the Notes according
to the true intent and meaning thereof, and shall make all required payments
into the Funds and Accounts as required under Article V hereof, or shall
provide, as permitted hereby, for the payment thereof by depositing with the
Trustee sums sufficient to pay or to provide for payment of the entire amount
due and to become so due as herein provided (including payments due and payable
to any Counterparty), then this Indenture (other than Sections 4.13, 4.14 (for a
period of 90 days after the Issuer has paid or provided for the payments of the
amounts described herein) and 7.05 hereof) and the rights hereby granted shall
cease, terminate and be void; otherwise, this Indenture shall be and remain in
full force and effect;

        NOW, THEREFORE, it is mutually covenanted and agreed as follows:

                                   ARTICLE I

                         DEFINITIONS AND USE OF PHRASES

        Capitalized terms used herein and not otherwise defined shall have the
meanings set forth below, as applicable, unless the context clearly requires
otherwise:

        "ACCOUNT" shall mean any of the accounts created and established within
any Fund pursuant to this Indenture.

        "ACQUISITION FUND" shall mean the Fund by that name created in Section
5.01(a) hereof and further described in Section 5.02 hereof, including the
Prefunding Account and any additional Accounts and Subaccounts created therein.

        "ADJUSTED POOL BALANCE" shall mean, for any Quarterly Distribution Date
as determined by the Administrator, (a) if the Pool Balance as of the last day
of the related Collection Period is greater than 40% of the Initial Pool
Balance, the sum of such Pool Balance, amounts then on deposit in the
Capitalized Interest Fund and the Specified Reserve Fund Balance for that
Quarterly Distribution Date; or (b) if the Pool Balance as of the last day of
the related Collection Period is less than or equal to 40% of the Initial Pool
Balance, that Pool Balance.

        "ADMINISTRATION AGREEMENT" shall mean the Administration Agreement,
dated as of May 1, 2008, among the Issuer, the Administrator, the Trustee and
the Delaware Trustee, as supplemented and amended.

        "ADMINISTRATION FEE" shall mean an amount equal to 0.05% per annum,
based on the Pool Balance as of the end of each calendar month, as determined by
the Administrator.

        "ADMINISTRATOR" shall mean National Education Loan Network, Inc. in its
capacity as administrator of the Issuer and the Financed Eligible Loans, or any
successor thereto in accordance with the Administration Agreement.

                                       3
<PAGE>

        "ADMINISTRATOR'S QUARTERLY DISTRIBUTION DATE CERTIFICATE" shall have the
meaning set forth in Section 4.15(c) hereof and shall be in the form of Exhibit
D attached hereto.

        "AFFILIATE" shall mean, with respect to any specified Person, any other
Person controlling or controlled by or under common control with such specified
Person. For the purposes of this definition, "control" when used with respect to
any specified Person means the power to direct the management and policies of
such Person, directly or indirectly, whether through the ownership of voting
securities, by contract or otherwise; and the terms "controlling" and
"controlled" have meanings correlative to the foregoing.

        "AUTHORIZED DENOMINATIONS" shall have the meaning ascribed to such term
in Section 2.02 hereof

        "AUTHORIZED REPRESENTATIVE" shall mean, when used with reference to the
Issuer, the Administrator and any Person duly authorized by the Trust Agreement
to act on the Issuer's behalf.

        "AVAILABLE FUNDS" shall mean, with respect to a Quarterly Distribution
Date or any related Monthly Servicing Payment Date, the sum of the following
amounts received to the extent not previously distributed: (a) all collections
received by the Master Servicer or any Subservicer on the Financed Eligible
Loans (including late fees received by the Master Servicer or any Subservicer
with respect to the Financed Eligible Loans and payments from any Guaranty
Agency received with respect to the Financed Eligible Loans) but net of (i) any
collections in respect of principal on the Financed Eligible Loans applied by
the Issuer to repurchase guaranteed loans from the Guaranty Agencies or the
Master Servicer or any Subservicer in accordance with its Guarantee Agreement,
the Master Servicing Agreement or the related Subservicing Agreement, as
applicable; and (ii) amounts required by the Higher Education Act to be paid to
the Department (including, but not limited to, any Department Rebate Interest
Amounts to be deposited into the Department Rebate Fund or paid directly to the
Department) or to be repaid to borrowers (whether or not in the form of a
principal reduction of the applicable Financed Eligible Loan), with respect to
the Financed Eligible Loans; (b) any Interest Benefit Payments and Special
Allowance Payments received by the Trustee or the Eligible Lender Trustee with
respect to Financed Eligible Loans; (c) all Liquidation Proceeds from any
Financed Eligible Loans which became Liquidated Financed Eligible Loans in
accordance with the related Master Servicer or Subservicer's customary servicing
procedures, and all other moneys collected with respect to any Liquidated
Financed Eligible Loan which was written off, net of the sum of any amounts
expended by the Master Servicer or related Subservicer in connection with such
liquidation and any amounts required by law to be remitted to the obligor on
such Liquidated Financed Eligible Loan; (d) the aggregate Purchase Amounts
received for Financed Eligible Loans repurchased by the Seller or purchased by
the Master Servicer or a Subservicer or for serial loans sold to another
eligible lender pursuant to the Master Servicing Agreement or the related
Subservicing Agreement; (e) the aggregate amounts, if any, received from the
Seller, the Master Servicer or any Subservicer, as the case may be, as
reimbursement of non-guaranteed interest amounts, or lost Interest Benefit
Payments and Special Allowance Payments, with respect to the Financed Eligible
Loans pursuant to a Student Loan Purchase Agreement, the Master Servicing
Agreement or a Subservicing Agreement, respectively; (f) other amounts received
by the Master Servicer or a Subservicer pursuant to its role as Master Servicer
or Subservicer under the Master Servicing Agreement or the related Subservicing
Agreement, respectively, and payable to the Issuer in connection therewith; (g)
all interest earned or gain realized from the investment of amounts in any Fund
or Account; (h) any payments received under the Derivative Products from the
Counterparties in respect of such Quarterly Distribution Date and (i) any other
amounts deposited to the Collection Fund. "Available Funds" shall be determined
pursuant to the terms of this definition by the Administrator and reported to
the Trustee. Amounts described in clause (a)(i) and (ii) hereof shall be paid by
the Trustee upon receipt of a written direction from the Administrator. The
Trustee may conclusively rely on such determinations without further duty to
review or examine such information.

                                       4
<PAGE>

        "BASIC DOCUMENTS" shall mean the Trust Agreement, this Indenture, the
Master Servicing Agreement, any Subservicing Agreement, the Administration
Agreement, any Student Loan Purchase Agreement, any Custodian Agreement, the
Guarantee Agreements, the Eligible Lender Trust Agreement, any Derivative
Products and other documents and certificates delivered in connection with any
thereof.

        "BUSINESS DAY" shall mean (a) for purposes of calculating LIBOR, any day
on which banks in New York, New York and London, England are open for the
transaction of international business; and (b) for all other purposes, any day
other than a Saturday, a Sunday, a holiday or any other day on which banks
located in New York, New York or the city in which the principal office of the
Trustee is located, are authorized or permitted by law, regulation or executive
order to close.

        "CAPITALIZED INTEREST FUND" shall mean the Fund by that name created in
Section 5.01(b) hereof and further described in Section 5.03 hereof.

        "CARRYOVER SERVICING FEES" shall have the meaning assigned to such term
in the Master Servicing Agreement.

        "CERTIFICATE OF INSURANCE" shall mean any Certificate evidencing that a
Financed Eligible Loan is Insured pursuant to a Contract of Insurance.

        "CERTIFICATE OF TRUST" shall mean the certificate filed with the
Secretary of State of the State establishing the Issuer under Delaware law.

        "CLASS" shall mean, as appropriate, the Class A-1 Notes, the Class A-2
Notes, the Class A-3 Notes, the Class A-4 Notes or the Class B Notes.

                                       5
<PAGE>

        "CLASS A NOTEHOLDER" shall mean the Person in whose name a Class A Note
is registered in the Note registration books of the Trustee.

        "CLASS A NOTEHOLDERS' INTEREST DISTRIBUTION AMOUNT" shall mean, for any
Quarterly Distribution Date for any Class of Class A Notes, the Class A-1
Noteholders' Interest Distribution Amount, the Class A-2 Noteholders' Interest
Distribution Amount, the Class A-3 Noteholders' Interest Distribution Amount or
the Class A-4 Noteholders' Interest Distribution Amount, as applicable, in each
case to the extent payable on such Quarterly Distribution Date.

        "CLASS A NOTES" shall mean, collectively, the Class A-1 Notes, the Class
A-2 Notes, the Class A-3 Notes and the Class A-4 Notes, secured on a senior
priority to the Class B Obligations.

        "CLASS A OBLIGATIONS" shall mean Class A Notes and the Derivative
Products, the priority of payment of which is equal with that of Class A Notes.

        "CLASS A-1 MATURITY DATE" shall mean the April 2015 Quarterly
Distribution Date.

        "CLASS A-1 NOTE INTEREST SHORTFALL" shall mean, with respect to any
Quarterly Distribution Date, the excess, if any, of (a) the Class A-1
Noteholders' Interest Distribution Amount on the immediately preceding Quarterly
Distribution Date over (b) the amount of interest actually distributed to the
Class A-1 Noteholders on such preceding Quarterly Distribution Date, plus
interest on the amount of such excess interest due to the Class A-1 Noteholders,
to the extent permitted by law, at the interest rate borne by the Class A-1
Notes from such immediately preceding Quarterly Distribution Date to the current
Quarterly Distribution Date, as determined by the Administrator.

        "CLASS A-1 NOTEHOLDER" shall mean the Person in whose name a Class A-1
Note is registered in the Note registration books maintained by the Trustee.

        "CLASS A-1 NOTEHOLDERS' INTEREST DISTRIBUTION AMOUNT" shall mean, with
respect to any Quarterly Distribution Date, the sum of (a) the amount of
interest accrued at the Class A-1 Rate for the related Interest Accrual Period
on the Outstanding Amount of the Class A-1 Notes immediately prior to such
Quarterly Distribution Date; and (b) the Class A-1 Note Interest Shortfall for
such Quarterly Distribution Date, as based on the actual number of days in such
Interest Accrual Period divided by 360 and rounding the resultant figure to the
fifth decimal place, as determined by the Administrator.

        "CLASS A-1 NOTES" shall mean the $286,000,000 Student Loan Asset-Backed
Notes, Senior Class A-1 issued by the Issuer pursuant to this Indenture,
substantially in the form of Exhibit B-1 hereto.

        "CLASS A-1 RATE" shall mean, for any Interest Accrual Period, other than
the first Interest Accrual Period, the applicable Three-Month LIBOR plus 0.53%,
as determined by the Administrator. For the first Interest Accrual Period, the
Class A-1 Rate shall be determined by reference to the following formula:

        x + [4/30 * (y-x)] plus 0.53%, as determined by the Administrator.

        where:

        x = Two-Month LIBOR, and

        y = Three-Month LIBOR.

        "CLASS A-2 MATURITY DATE" shall mean the July 2018 Quarterly
Distribution Date.

                                       6
<PAGE>

        "CLASS A-2 NOTE INTEREST SHORTFALL" shall mean, with respect to any
Quarterly Distribution Date, the excess, if any, of (a) the Class A-2
Noteholders' Interest Distribution Amount on the immediately preceding Quarterly
Distribution Date over (b) the amount of interest actually distributed to the
Class A-2 Noteholders on such preceding Quarterly Distribution Date, plus
interest on the amount of such excess interest due to the Class A-2 Noteholders,
to the extent permitted by law, at the interest rate borne by the Class A-2
Notes from such immediately preceding Quarterly Distribution Date to the current
Quarterly Distribution Date, as determined by the Administrator.

        "CLASS A-2 NOTEHOLDER" shall mean the Person in whose name a Class A-2
Note is registered in the Note registration books maintained by the Trustee.

        "CLASS A-2 NOTEHOLDERS' INTEREST DISTRIBUTION AMOUNT" shall mean, with
respect to any Quarterly Distribution Date, the sum of (a) the amount of
interest accrued at the Class A-2 Rate for the related Interest Accrual Period
on the Outstanding Amount of the Class A-2 Notes immediately prior to such
Quarterly Distribution Date; and (b) the Class A-2 Note Interest Shortfall for
such Quarterly Distribution Date, as based on the actual number of days in such
Interest Accrual Period divided by 360 and rounding the resultant figure to the
fifth decimal place, as determined by the Administrator.

        "CLASS A-2 NOTES" shall mean the $481,000,000 Student Loan Asset-Backed
Notes, Senior Class A-2 issued by the Issuer pursuant to this Indenture,
substantially in the form of Exhibit B-2 hereto.

        "CLASS A-2 RATE" shall mean, for any Interest Accrual Period, other than
the first Interest Accrual Period, the applicable Three-Month LIBOR plus 0.70%,
as determined by the Administrator. For the first Interest Accrual Period, the
Class A-2 Rate shall be determined by reference to the following formula:

        x + [4/30 * (y-x)] plus 0.70%, as determined by the Administrator.

        where:

        x = Two-Month LIBOR, and

        y = Three-Month LIBOR.

        "CLASS A-3 MATURITY DATE" shall mean the October 2019 Quarterly
Distribution Date.

        "CLASS A-3 NOTE INTEREST SHORTFALL" shall mean, with respect to any
Quarterly Distribution Date, the excess, if any, of (a) the Class A-3
Noteholders' Interest Distribution Amount on the immediately preceding Quarterly
Distribution Date over (b) the amount of interest actually distributed to the
Class A-3 Noteholders on such preceding Quarterly Distribution Date, plus
interest on the amount of such excess interest due to the Class A-3 Noteholders,
to the extent permitted by law, at the interest rate borne by the Class A-3
Notes from such immediately preceding Quarterly Distribution Date to the current
Quarterly Distribution Date, as determined by the Administrator.

                                       7
<PAGE>

        "CLASS A-3 NOTEHOLDER" shall mean the Person in whose name a Class A-3
Note is registered in the Note registration books maintained by the Trustee.

        "CLASS A-3 NOTEHOLDERS' INTEREST DISTRIBUTION AMOUNT" shall mean, with
respect to any Quarterly Distribution Date, the sum of (a) the amount of
interest accrued at the Class A-3 Rate for the related Interest Accrual Period
on the Outstanding Amount of the Class A-3 Notes immediately prior to such
Quarterly Distribution Date; and (b) the Class A-3 Note Interest Shortfall for
such Quarterly Distribution Date, as based on the actual number of days in such
Interest Accrual Period divided by 360 and rounding the resultant figure to the
fifth decimal place, as determined by the Administrator.

        "CLASS A-3 NOTES" shall mean the $147,000,000 Student Loan Asset-Backed
Notes, Senior Class A-3 issued by the Issuer pursuant to this Indenture,
substantially in the form of Exhibit B-3 hereto.

        "CLASS A-3 RATE" shall mean, for any Interest Accrual Period, other than
the first Interest Accrual Period, the applicable Three-Month LIBOR plus 0.93%,
as determined by the Administrator. For the first Interest Accrual Period, the
Class A-3 Rate shall be determined by reference to the following formula:

        x + [4/30 * (y-x)] plus 0.93%, as determined by the Administrator.

        where:

        x = Two-Month LIBOR, and

        y = Three-Month LIBOR.

        "CLASS A-4 MATURITY DATE" shall mean the April 2024 Quarterly
Distribution Date.

        "CLASS A-4 NOTE INTEREST SHORTFALL" shall mean, with respect to any
Quarterly Distribution Date, the excess, if any, of (a) the Class A-4
Noteholders' Interest Distribution Amount on the immediately preceding Quarterly
Distribution Date over (b) the amount of interest actually distributed to the
Class A-4 Noteholders on such preceding Quarterly Distribution Date, plus
interest on the amount of such excess interest due to the Class A-4 Noteholders,
to the extent permitted by law, at the interest rate borne by the Class A-4
Notes from such immediately preceding Quarterly Distribution Date to the current
Quarterly Distribution Date, as determined by the Administrator.

        "CLASS A-4 NOTEHOLDER" shall mean the Person in whose name a Class A-4
Note is registered in the Note registration books maintained by the Trustee.

        "CLASS A-4 NOTEHOLDERS' INTEREST DISTRIBUTION AMOUNT" shall mean, with
respect to any Quarterly Distribution Date, the sum of (a) the amount of
interest accrued at the Class A-4 Rate for the related Interest Accrual Period
on the Outstanding Amount of the Class A-4 Notes immediately prior to such
Quarterly Distribution Date; and (b) the Class A-4 Note Interest Shortfall for
such Quarterly Distribution Date, as based on the actual number of days in such
Interest Accrual Period divided by 360 and rounding the resultant figure to the
fifth decimal place, as determined by the Administrator.

                                       8
<PAGE>

        "CLASS A-4 NOTES" shall mean the $395,500,000 Student Loan Asset-Backed
Notes, Senior Class A-4 issued by the Issuer pursuant to this Indenture,
substantially in the form of Exhibit B-4 hereto.

        "CLASS A-4 RATE" shall mean, for any Interest Accrual Period, other than
the first Interest Accrual Period, the applicable Three-Month LIBOR plus 1.48%,
as determined by the Administrator. For the first Interest Accrual Period, the
Class A-4 Rate shall be determined by reference to the following formula:

        x + [4/30 * (y-x)] plus 1.48%, as determined by the Administrator.

        where:

        x = Two-Month LIBOR, and

        y = Three-Month LIBOR.

        "CLASS B MATURITY DATE" shall mean the January 2030 Quarterly
Distribution Date.

        "CLASS B NOTE INTEREST SHORTFALL" shall mean, with respect to any
Quarterly Distribution Date, unless a Subordinate Notes Interest Trigger is in
effect for such Quarterly Distribution Date, the excess, if any, of (a) the
Class B Noteholders' Interest Distribution Amount on the immediately preceding
Quarterly Distribution Date over (b) the amount of interest actually distributed
to the Class B Noteholders on such preceding Quarterly Distribution Date, plus
interest on the amount of such excess interest due to the Class B Noteholders,
to the extent permitted by law, at the interest rate borne by the Class B Notes
from such immediately preceding Quarterly Distribution Date to the current
Quarterly Distribution Date, as determined by the Administrator. If a
Subordinate Notes Interest Trigger is in effect for such Quarterly Distribution
Date, the Class B Note Interest Shortfall for such Quarterly Distribution Date
shall be zero and any Class B Noteholders' Interest Distribution Amount not paid
on such Quarterly Distribution Date shall become Class B Notes Carry-over
Amount.

        "CLASS B NOTEHOLDER" shall mean the Person in whose name a Class B Note
is registered in the Note registration books maintained by the Trustee.

        "CLASS B NOTEHOLDERS' INTEREST DISTRIBUTION AMOUNT" shall mean, with
respect to any Quarterly Distribution Date, the sum of (a) the amount of
interest accrued at the Class B Rate for the related Interest Accrual Period on
the Outstanding Amount of the Class B Notes immediately prior to such Quarterly
Distribution Date; and (b) the Class B Note Interest Shortfall for such
Quarterly Distribution Date, as based on the actual number of days in such
Interest Accrual Period divided by 360 and rounding the resultant figure to the
fifth decimal place, as determined by the Administrator.

                                       9
<PAGE>

        "CLASS B NOTES" shall mean the $40,500,000 Student Loan Asset-Backed
Notes, Subordinate Class B issued by the Issuer pursuant to this Indenture,
substantially in the form of Exhibit B-5 hereto and secured on a junior priority
to the Class A Obligations.

        "CLASS B NOTES CARRY-OVER AMOUNT" shall mean, for any Quarterly
Distribution Date for which the Subordinate Notes Interest Trigger has occurred
and is continuing, (a) the Class B Noteholders' Interest Distribution Amount due
on such Quarterly Distribution Date over (b) the amount of interest actually
distributed to the Class B Noteholders on such Quarterly Distribution Date for
such Interest Accrual Period, together with the unreduced portion of any such
Class B Notes Carry-over Amount from prior Interest Accrual Periods and accrued
interest thereon as provided in Section 5.04(e) hereof; provided that any
reference to "principal" or "interest" in this Indenture and the Class B Notes
shall not include within the meanings of such words any Class B Notes Carry-over
Amount or any interest accrued on any Class B Notes Carry-over Amount.

        "CLASS B OBLIGATIONS" shall mean Class B Notes.

        "CLASS B RATE" shall mean, for any Interest Accrual Period, other than
the first Interest Accrual Period, the applicable Three-Month LIBOR, plus 1.00%,
as determined by the Administrator. For the first Interest Accrual Period, the
Class B Rate shall be determined by reference to the following formula:

        x + [4/30 * (y-x)] plus 1.00%, as determined by the Administrator.

        where:

        x = Two-Month LIBOR, and

        y = Three-Month LIBOR.

        "CLEARING AGENCY" shall mean an organization registered as a "clearing
agency" pursuant to Section 17A of the Exchange Act. The initial Clearing Agency
shall be The Depository Trust Company and its successor or assigns and the
initial nominee for the Clearing Agency shall be Cede & Co. If (a) the then
Clearing Agency resigns from its functions as depository of the Notes or (b) the
Issuer discontinues use of the Clearing Agency, any other securities depository
which agrees to follow the procedures required to be followed by a securities
depository in connection with the Notes and which is selected by the Issuer with
the consent of the Trustee.

        "CLEARING AGENCY PARTICIPANT" shall mean a broker, dealer, bank, other
financial institution or other Person for whom from time to time a Clearing
Agency effects book-entry transfers and pledges of securities deposited with the
Clearing Agency.

        "CODE" shall mean the Internal Revenue Code of 1986, as amended from
time to time. Each reference to a section of the Code herein shall be deemed to
include the United States Treasury Regulations, including applicable temporary
and proposed regulations, relating to such section which are applicable to the
Notes or the use of the proceeds thereof. A reference to any specific section of
the Code shall be deemed also to be a reference to the comparable provisions of
any enactment which supersedes or replaces the Code thereunder from time to
time.

                                       10
<PAGE>

        "COLLECTION FUND" shall mean the Fund by that name created in Section
5.01(c) hereof and further described in Section 5.04 hereof.

        "COLLECTION PERIOD" shall mean, with respect to the first Quarterly
Distribution Date, the period beginning on May 17, 2008 and ending on June 30,
2008 and with respect to each subsequent Quarterly Distribution Date, the
Collection Period shall mean the three calendar months immediately preceding
such Quarterly Distribution Date.

        "COMMISSION" shall mean the Securities and Exchange Commission.

        "CONTRACT OF INSURANCE" shall mean the contract of insurance between the
Eligible Lender and the Secretary.

        "COUNTERPARTY" shall mean the counterparties to any Derivative Product
entered into pursuant to Section 3.03 hereof.

        "COUNTERPARTY PAYMENTS" shall mean any payment to be made to, or for the
benefit of, the Issuer under a Derivative Product.

        "CUSTODIAN AGREEMENT" shall mean, collectively or individually as the
context may require, the custodian agreements with the Master Servicer and each
Subservicer or other custodian or bailee related to Financed Eligible Loans.

        "CUTOFF DATE" shall mean (i) with respect to the initial pool of
Financed Eligible Loans, May 16, 2008; and (ii) with respect to subsequently
acquired Eligible Loans, the date on which such loans are transferred to the
Issuer.

        "DATE OF ISSUANCE" shall mean May 20, 2008.

        "DELAWARE TRUSTEE" shall mean M&T Trust Company of Delaware, a Delaware
limited purpose trust company, solely in its capacity as the trustee of the
Issuer under the Trust Agreement.

        "DELAWARE TRUSTEE FEE" shall mean (a) the Delaware Trustee's initial
setup fee plus the initial $2,500 annual fee and (b) an annual fee equal to
$2,500, payable on each April Quarterly Distribution Date, beginning on the
April 2009 Quarterly Distribution Date.

        "DEPARTMENT" shall mean the United States Department of Education, an
agency of the Federal government.

        "DEPARTMENT REBATE FUND" shall mean the Fund by that name created in
Section 5.01(d) hereof and further described in Section 5.06 hereof, including
any Accounts and Subaccounts created therein.

        "DEPARTMENT REBATE INTEREST AMOUNT" means, with respect to any date of
determination, the greater of (a)(i) the amount of interest paid by borrowers on
the Financed Eligible Loans first disbursed on or after April 1, 2006 that
exceeds the Special Allowance Payment support levels applicable to such Financed
Student Loans under the Higher Education Act since the prior Department Rebate
Payment Date less (ii) the amount of accrued Interest Subsidy Payments or
Special Allowance Payments due to the Issuer since the prior Department Rebate
Payment Date and (b) $0.00.

                                       11
<PAGE>

        "DEPARTMENT REBATE PAYMENT DATE" means the quarterly date that (i) the
Department Rebate Interest Amount is due and payable to the Department or (ii)
the Department offsets the Department Rebate Interest Amount from Interest
Subsidy Payments or Special Allowance Payments due to the Issuer.

        "DEPOSITOR" shall mean Nelnet Student Loan Funding, LLC, and its
successors and assigns and any other Person or Persons as may become a Depositor
pursuant to the terms of the Trust Agreement.

        "DERIVATIVE PRODUCT" shall mean any interest rate, currency or other
hedge agreement, credit default swap or similar agreement entered into between
the Issuer and a Counterparty subsequent to the Date of Issuance subject to the
provisions of Section 3.03 hereof.

        "DERIVATIVE VALUE" shall mean the value of a Derivative Product, if any,
to the Counterparty, provided that such value is defined and calculated in
substantially the same manner as amounts are defined and calculated pursuant to
the applicable provisions of an ISDA Master Agreement.

        "DETERMINATION DATE" shall mean, with respect to any Quarterly
Distribution Date or the Monthly Servicing Payment Date, as applicable, the
second Business Day preceding such Quarterly Distribution Date or Monthly
Servicing Payment Date.

        "ELIGIBLE LENDER" shall mean (i) Zions First National Bank, in its
capacity as eligible lender trustee hereunder and under the terms of the
Eligible Lender Trust Agreement, and (ii) any "eligible lender," as defined in
the Higher Education Act, and which has received an eligible lender designation
from the Secretary with respect to Eligible Loans made under the Higher
Education Act.

        "ELIGIBLE LENDER TRUST AGREEMENT" shall mean the Eligible Lender Trust
Agreement, dated as of May 1, 2008, between the Issuer and Zions First National
Bank, as eligible lender trustee, as amended from time to time.

        "ELIGIBLE LOAN" shall mean any loan made to finance post-secondary
education that is made under the Higher Education Act and had its first
disbursement prior to October 1, 2007, provided that if, after any
reauthorization or amendment of the Higher Education Act, loans authorized
thereunder, including, without limitation, their benefits, any provisions, or
the servicing thereof, are materially different from loans so authorized prior
to such reauthorization or amendment, such loans authorized after such
reauthorization or amendment shall not constitute Eligible Loans unless a Rating
Confirmation is obtained.

        "ELIGIBLE LOAN ACQUISITION CERTIFICATE" shall mean a certificate signed
by an Authorized Representative in substantially the form attached as Exhibit A
hereto.

        "ERISA" shall mean the Employee Retirement Income Security Act of 1974,
as amended.

                                       12
<PAGE>

        "EVENT OF BANKRUPTCY" shall mean (a) the Issuer shall have commenced a
voluntary case or other proceeding seeking liquidation, reorganization or other
relief with respect to itself or its debts under any bankruptcy, insolvency or
other similar law now or hereafter in effect or seeking the appointment of a
trustee, receiver, liquidator, custodian or other similar official of it or any
substantial part of its property, or shall have made a general assignment for
the benefit of creditors, or shall have declared a moratorium with respect to
its debts or shall have failed generally to pay its debts as they become due, or
shall have taken any action to authorize any of the foregoing; or (b) an
involuntary case or other proceeding shall have been commenced against the
Issuer seeking liquidation, reorganization or other relief with respect to it or
its debts under any bankruptcy, insolvency or other similar law now or hereafter
in effect or seeking the appointment of a trustee, receiver, liquidator,
custodian or other similar official of it or any substantial part of its
property provided such action or proceeding is not dismissed within 60 days.

        "EVENT OF DEFAULT" shall have the meaning specified in Article VI
hereof.

        "EXCHANGE ACT" shall mean the Securities Exchange Act of 1934, as
amended.

        "FINANCED" or "FINANCING" when used with respect to Eligible Loans,
shall mean or refer to Eligible Loans (a) acquired by the Issuer with balances
in the Acquisition Fund or otherwise deposited in or accounted for in the
Acquisition Fund or otherwise constituting a part of the Trust Estate and (b)
Eligible Loans substituted or exchanged for Financed Eligible Loans, but does
not include Eligible Loans released from the lien of this Indenture and sold or
transferred, to the extent permitted by this Indenture.

        "FISCAL YEAR" shall mean the fiscal year of the Issuer (initially
January 1 to December 31) as established from time to time.

        "FITCH" shall mean Fitch Inc., its successors and assigns.

        "FUNDS" shall mean each of the Funds created pursuant to Section 5.01
hereof.

        "GUARANTEE" or "GUARANTEED" shall mean, with respect to an Eligible
Loan, the insurance or guarantee by a Guaranty Agency pursuant to such Guaranty
Agency's Guarantee Agreement of the maximum percentage of the principal of and
accrued interest on such Eligible Loan allowed by the terms of the Higher
Education Act with respect to such Eligible Loan at the time it was originated
and the coverage of such Eligible Loan by the federal reimbursement contracts,
providing, among other things, for reimbursement to such Guaranty Agency for
payments made by it on defaulted Eligible Loans insured or guaranteed by such
Guaranty Agency of at least the minimum reimbursement allowed by the Higher
Education Act with respect to a particular Eligible Loan.

        "GUARANTEE AGREEMENTS" shall mean a guaranty or lender agreement between
the Trustee or the Eligible Lender Trustee and any Guaranty Agency, and any
amendments thereto.

        "GUARANTY AGENCY" shall mean any entity authorized to guarantee student
loans under the Higher Education Act and with which the Trustee or the Eligible
Lender Trustee maintains a Guarantee Agreement.

                                       13
<PAGE>

        "HIGHER EDUCATION ACT" shall mean the Higher Education Act of 1965, as
amended or supplemented from time to time, or any successor federal act and all
regulations, directives, bulletins and guidelines promulgated from time to time
thereunder.

        "HIGHEST PRIORITY OBLIGATIONS" shall mean at any time when Class A
Obligations are Outstanding, the Class A Obligations, and at any time when no
Class A Obligations are Outstanding, the Class B Obligations.

        "INDENTURE" shall mean this Indenture of Trust, including all
supplements and amendments hereto.

        "INDEPENDENT" shall mean, when used with respect to any specified
Person, that the Person (a) is in fact independent of the Issuer, any other
obligor upon the Notes, the Seller and any Affiliate of any of the foregoing
Persons; (b) does not have any direct financial interest or any material
indirect financial interest in the Issuer, any such other obligor, the Seller or
any Affiliate of any of the foregoing Persons; and (c) is not connected with the
Issuer, any such other obligor, the Seller or any Affiliate of any of the
foregoing Persons as an officer, employee, promoter, underwriter, placement
agent, trustee, partner, director or person performing similar functions.

        "INDEPENDENT CERTIFICATE" shall mean a certificate or opinion to be
delivered to the Trustee under the circumstances described in, and otherwise
complying with, the applicable requirements of this Indenture, made by an
Independent appraiser or other expert appointed by an Issuer Order and approved
by the Trustee in the exercise of reasonable care, and such opinion or
certificate shall state that the signer has read the definition of "Independent"
in this Indenture and that the signer is Independent within the meaning thereof.

        "INDEX MATURITY" shall mean (i) for Three-Month LIBOR, three months and
(ii) for Two-Month LIBOR, two months.

        "INITIAL POOL BALANCE" shall mean the Pool Balance as of the Date of
Issuance.

        "INSURANCE" or "INSURED" or "INSURING" shall mean, with respect to an
Eligible Loan, the insuring by the Secretary (as evidenced by a Certificate of
Insurance or other document or certification issued under the provisions of the
Higher Education Act) under the Higher Education Act of all or a portion of the
principal of and accrued interest on such Eligible Loan.

        "INTEREST ACCRUAL PERIOD" shall mean, initially, the period commencing
on the Date of Issuance and ending on July 24, 2008 and thereafter, with respect
to each Quarterly Distribution Date, the period beginning on and including the
immediately preceding Quarterly Distribution Date and ending on the day
immediately preceding such current Quarterly Distribution Date.

        "INTEREST BENEFIT PAYMENT" shall mean an interest payment on Eligible
Loans received pursuant to the Higher Education Act and an agreement with the
federal government, or any similar payments.

                                       14
<PAGE>

        "INVESTMENT AGREEMENT" shall mean (a) the Investment Agreement, dated as
of May 20, 2008, between the Trustee and Trinity Plus Funding Company, LLC and
(b) any other investment agreement upon the receipt of a Rating Confirmation.
The Trustee shall provide notice to each Rating Agency of any amendment to or
transfer of an Investment Agreement. The issuance by the Rating Agencies of the
ratings on the Notes on the Date of Issuance shall serve as the Rating
Confirmation required with respect to the Investment Agreement set forth in
clause (a) above. Neither the Trustee nor the Issuer shall (i) consent to any
material amendment to an Investment Agreement, (ii) consent to any assignment of
an Investment Agreement, (iii) if permitted, fail to terminate an Investment
Agreement upon a ratings downgrade of the Investment Agreement provider by S&P
or (iv) approve a transferee of an Investment Agreement without first obtaining
a letter from S&P confirming that such action or failure to act will not, in and
of itself, result in a downgrade of its Ratings then applicable to the Notes, or
cause S&P to suspend, withdraw or qualify its Ratings then applicable to the
Notes.

        "INVESTMENT SECURITIES" shall mean:

                (a) direct obligations of, or obligations on which the timely
        payment of the principal of and interest on which are unconditionally
        and fully guaranteed by, the United States of America;

                (b) interest-bearing time or demand deposits, certificates of
        deposit or other similar banking arrangements with a maturity of 12
        months or less with any bank, trust company, national banking
        association or other depository institution, including those of the
        Trustee, provided that, at the time of deposit or purchase such
        depository institution has commercial paper which is rated "A-1+" by S&P
        and "F1+" by Fitch and has the required ratings from Moody's
        corresponding to the duration of such investment set forth below;

                (c) interest-bearing time or demand deposits, certificates of
        deposit or other similar banking arrangements with a maturity of 24
        months or less, but more than 12 months, with any bank, trust company,
        national banking association or other depository institution, including
        those of the Trustee and any of its affiliates, provided that, at the
        time of deposit or purchase such depository institution has senior debt
        rated "A" or higher by S&P and "AA-" or higher by Fitch, if commercial
        paper is outstanding, commercial paper which is rated "A-1+" by S&P and
        "F1+" by Fitch and has the required ratings from Moody's corresponding
        to the duration of such investment set forth below;

                (d) interest-bearing time or demand deposits, certificates of
        deposit or other similar banking arrangements with a maturity of more
        than 24 months with any bank, trust company, national banking
        association or other depository institution, including those of the
        Trustee and any of its affiliates, provided that, at the time of deposit
        or purchase such depository institution has senior debt rated "AA" or
        higher by S&P and "AA" or higher by Fitch, if commercial paper is
        outstanding, commercial paper which is rated "A-1+" by S&P, "P-1" by
        Moody's and "F1+" by Fitch and has the required ratings from Moody's
        corresponding to the duration of such investment set forth below;

                (e) bonds, debentures, notes or other evidences of indebtedness
        issued or guaranteed by any of the following agencies: Federal Farm
        Credit Banks, Federal Home Loan Mortgage Corporation; the Export-Import
        Bank of the United States; the Federal National Mortgage Association;
        the Farmers Home Administration; Federal Home Loan Banks provided such
        obligation is rated "AAA" by S&P, "Aaa" by Moody's and "AAA" by Fitch;
        or any agency or instrumentality of the United States of America which
        shall be established for the purposes of acquiring the obligations of
        any of the foregoing or otherwise providing financing therefor;

                                       15
<PAGE>

                (f) repurchase agreements and reverse repurchase agreements,
        other than overnight repurchase agreements and overnight reverse
        repurchase agreements, with banks, including the Trustee and any of its
        affiliates, which are members of the Federal Deposit Insurance
        Corporation or firms which are members of the Securities Investors
        Protection Corporation, in each case whose outstanding, unsecured debt
        securities are rated no lower than two subcategories below the highest
        rating on any Class of Outstanding Notes by S&P and Fitch, if commercial
        paper is outstanding, commercial paper which is rated "A-1+" by S&P and
        "F1+" by Fitch and has the required ratings from Moody's corresponding
        to the duration of such investment set forth below;

                (g) overnight repurchase agreements and overnight reverse
        repurchase agreements at least 101% collateralized by securities
        described in subparagraph (a) of this definition and with a
        counterparty, including the Trustee and any of its affiliates, that has
        senior debt rated "AA" or higher by S&P and "AA-" or higher by Fitch, if
        commercial paper is outstanding, commercial paper which is rated "A-1+"
        by S&P and "F1+" by Fitch and has the required ratings from Moody's
        corresponding to the duration of such investment set forth below, or a
        counterparty approved in writing by S&P, Moody's and Fitch,
        respectively;

                (h) investment agreements or guaranteed investment contracts,
        which may be entered into by and among the Issuer and/or the Trustee and
        any bank, bank holding company, corporation or any other financial
        institution, including the Trustee and any of its affiliates, whose
        outstanding (i) commercial paper is rated "A-1+" by S&P and "F1+" by
        Fitch for agreements or contracts with a maturity of 12 months or less
        and has the required ratings from Moody's corresponding to the duration
        of such investment set forth below; (ii) unsecured long-term debt is
        rated no lower than two subcategories below the highest rating on any
        Class of Outstanding Notes by S&P and Fitch and, if commercial paper is
        outstanding, commercial paper which is rated "A-1+" by S&P and "F1+" by
        Fitch for agreements or contracts with a maturity of 24 months or less,
        but more than 12 months and has the required ratings from Moody's
        corresponding to the duration of such investment set forth below, or
        (iii) unsecured long-term debt which is rated no lower than two
        subcategories below the highest rating on any Class of Outstanding Notes
        by S&P and Fitch and, if commercial paper is outstanding, commercial
        paper which is rated "A-1+" by S&P and "F1+" by Fitch for agreements or
        contracts with a maturity of more than 24 months and has the required
        ratings from Moody's corresponding to the duration of such investment
        set forth below, or, in each case, by an insurance company whose
        claims-paying ability is so rated;

                (i) "tax exempt bonds" as defined in Section 150(a)(6) of the
        Code, other than "specified private activity bonds" as defined in
        Section 57(a)(5)(C) of the Code, that are rated in the highest category
        by S&P and Fitch for long-term or short-term debt or shares of a
        so-called money market or mutual fund rated "AAAm/AAAm-G" or higher by
        S&P, and "AAA/F1+" by Fitch and has the required ratings from Moody's
        corresponding to the duration of such investment set forth below, that
        do not constitute "investment property" within the meaning of Section
        148(b)(2) of the Code, provided that the fund has all of its assets
        invested in obligations of such rating quality;

                                       16
<PAGE>

                (j) commercial paper, including that of the Trustee and any of
        its affiliates, which is rated in the single highest classification,
        "A-1+" by S&P and "F1+" by Fitch and has the required ratings from
        Moody's corresponding to the duration of such investment set forth
        below, and which matures not more than 270 days after the date of
        purchase;

                (k) investments in a money market fund rated at least "AAAm" or
        "AAAm-G" by S&P, "Aaa" by Moody's and AAA/V1+ by Fitch, including funds
        for which the Trustee or an affiliate thereof acts as investment advisor
        or provides other similar services for a fee;

                (l) any Investment Agreement; and

                (m) any other investment with a Rating Confirmation from each
        Rating Agency.

        Each Investment Security or the provider of such Investment Security
(other than those described in paragraphs (a), (e), (k) and (l) of this
definition) shall have the following Moody's long-term and or short-term ratings
corresponding to the duration of such investment:

                   MAXIMUM MATURITY              MINIMUM RATINGS

                 One Month                      "A2" or "Prime-1"
                 Three Months                   "A1" and "Prime-1"
                 Six Months                     "Aa3" and "Prime-1"
                 Greater than Six Months        "Aaa" and "Prime-1"

        "ISDA MASTER AGREEMENT" shall mean the ISDA Master Agreement, copyright
1992, as amended from time to time, and as in effect with respect to any
Derivative Product.

        "ISSUER" shall mean Nelnet Student Loan Trust 2008-4, a statutory trust
organized and existing under the laws of the State, and any successor thereto.

        "ISSUER DERIVATIVE PAYMENT" shall mean any payment required to be made
by or on behalf of the Issuer due to a Counterparty pursuant to a Derivative
Product.

        "ISSUER ORDER" shall mean a written order signed in the name of the
Issuer by an Authorized Representative.

        "LIBOR" shall mean Three-Month LIBOR or Two-Month LIBOR, as applicable.

                                       17
<PAGE>

        "LIBOR DETERMINATION DATE" shall mean, for each Interest Accrual Period,
the second Business Day before the beginning of that Interest Accrual Period.

        "LIQUIDATED FINANCED ELIGIBLE LOAN" shall mean any defaulted Financed
Eligible Loan liquidated by the Master Servicer or a Subservicer (which shall
not include any Financed Eligible Loan on which payments are received from a
Guaranty Agency) or which such Master Servicer's or Subservicer has, after using
all reasonable efforts to realize upon such Financed Eligible Loan, determined
to charge off.

        "LIQUIDATION PROCEEDS" shall mean, with respect to any Liquidated
Financed Eligible Loan which became a Liquidated Financed Eligible Loan during
the current Collection Period in accordance with the Master Servicer's or a
Subservicer's customary servicing procedures, the moneys collected in respect of
the liquidation thereof from whatever source, other than moneys collected with
respect to any Liquidated Financed Eligible Loan which was written off in prior
Collection Periods or during the current Collection Period, net of the sum of
any amounts expended by such Master Servicer or Subservicer in connection with
such liquidation and any amounts required by law to be remitted to the obligor
on such Liquidated Financed Eligible Loan.

        "MASTER PROMISSORY NOTE" shall mean a Master Promissory Note in the form
mandated by Section 432(m)(1) of the Higher Education Act, as added by Public
Law No: 105-244 ss. 427, 112 Stat. 1702 (1998), as amended by Public Law No:
106-554 (enacted December 21, 2000) and as codified in 20 U.S.C. ss. 1082(m)(1).

        "MASTER SERVICER" shall mean National Education Loan Network, Inc. and
any other master servicer or successor master servicer selected by the Issuer,
including an affiliate of the Issuer, so long as the Issuer obtains a Rating
Confirmation as to each such other master servicer.

        "MASTER SERVICING AGREEMENT" shall mean (a) the Master Servicing
Agreement, dated as of May 1, 2008, among the Issuer, the Depositor, the
Administrator and the Master Servicer, as amended from time to time, and (b) any
replacement master servicing agreement among the Issuer, the Depositor, the
Administrator and any other Master Servicer.

        "MATURITY" when used with respect to any Note, shall mean the date on
which the principal thereof becomes due and payable as therein or herein
provided, whether at its Note Final Maturity Date, by earlier prepayment or
purchase, by declaration of acceleration, or otherwise.

        "MINIMUM PURCHASE AMOUNT" shall mean, on any Quarterly Distribution
Date, an amount that would be sufficient to (a) reduce the Outstanding Amount of
each Class of Notes on such Quarterly Distribution Date to zero; (b) pay to the
respective Registered Owners the Class A Noteholders' Interest Distribution
Amount and the Class B Noteholders' Interest Distribution Amount payable on such
Quarterly Distribution Date; (c) pay to the respective Class B Noteholders the
Class B Notes Carry-over Amount payable on such Quarterly Distribution Date, (d)
pay any Servicing Fees and Carryover Servicing Fees, Administration Fees,
Trustee Fees and Delaware Trustee Fees due and owing; and (e) pay any Issuer
Derivative Payments due and owing.

                                       18
<PAGE>

        "MONTHLY SERVICING PAYMENT DATE" shall mean the twenty-fifth (25th) day
of each calendar month or, if such day is not a Business Day, the immediately
succeeding Business Day, commencing on June 25, 2008.

        "MOODY'S" shall mean Moody's Investors Service, Inc., its successors and
assigns.

        "MPN LOAN" shall mean a loan originated pursuant to the Federal Family
Education Loan Program and the Higher Education Act and evidenced by a Master
Promissory Note.

        "NOTE FINAL MATURITY DATE" for a Class of Notes or for any Note of such
Class, as the context may require, shall mean the Class A-1 Maturity Date, the
Class A-2 Maturity Date, the Class A-3 Maturity Date or the Class A-4 Maturity
Date, as applicable.

        "NOTEHOLDER" shall mean, (a) with respect to a book-entry Note, the
Person who is the owner of such book-entry Note, as reflected on the books of
the Clearing Agency, or on the books of a Person maintaining an account with
such Clearing Agency (directly as a Clearing Agency Participant or as an
indirect participant, in each case in accordance with the rules of such Clearing
Agency); and (b) with respect to Notes held in definitive form pursuant to
Section 2.09 hereof, the Person in whose name a Note is registered in the Note
registration books of the Trustee.

        "NOTES" shall mean, collectively, the Class A Notes and the Class B
Notes.

        "OBLIGATIONS" shall mean, collectively, the Class A Obligations and the
Class B Obligations.

        "OPINION OF COUNSEL" shall mean (a) with respect to the Issuer one or
more written opinions of counsel who may, except as otherwise expressly provided
in the Indenture, be employees of or counsel to the Delaware Trustee, the Issuer
the Seller or an Affiliate of the Seller and who shall be reasonably
satisfactory to the Trustee, and which opinion or opinions shall be addressed to
the Trustee, as trustee, shall comply with any applicable requirements of the
Trust Indenture Act and shall be in form and substance satisfactory to the
Trustee; and (b) with respect to the Seller, the Administrator, the Master
Servicer or a Subservicer, one or more written opinions of counsel who may be an
employee of or counsel to the Seller, the Administrator, the Master Servicer or
a Subservicer, which counsel shall be acceptable to the Trustee and the Delaware
Trustee.

        "OPTIONAL PURCHASE DATE" shall have the meaning set forth in Section
10.03 hereof.

        "OUTSTANDING" shall mean, when used in connection with any Note, a Note
which has been executed and delivered pursuant to this Indenture which at such
time remains unpaid as to principal or interest, excluding Notes which have been
replaced pursuant to Section 2.03 or 2.04 hereof and when used in connection
with a Derivative Product, a Derivative Product which has not expired or been
terminated, unless provision has been made for such payment pursuant to Section
10.02 hereof.

                                       19
<PAGE>

        "OUTSTANDING AMOUNT" shall mean, as of any date of determination, the
aggregate principal amount of all Notes Outstanding or the applicable Class or
Classes of Notes, as the case may be, Outstanding at such date of determination.

        "PARITY RATIO" shall mean, on any Quarterly Distribution Date, (a) the
Pool Balance (including all accrued interest on the Financed Eligible Loans)
plus the amounts on deposit in the Reserve Fund as of the end of the related
Collection Period divided by (b) the Outstanding Amount of the Notes, after
giving effect to distributions to be made on that Quarterly Distribution Date.
The Parity Ratio shall be calculated by the Administrator and certified to the
Trustee upon which the Trustee may conclusively rely with no duty to further
examine or determine such information.

        "PERSON" shall mean an individual, corporation, partnership, joint
venture, association, joint stock company, trust, limited liability company,
unincorporated organization or government or agency, or political subdivision
thereof.

        "POOL BALANCE" shall mean as of any date (a) the aggregate principal
balance of the Financed Eligible Loans on such date (including accrued interest
thereon to the extent such interest is expected to be capitalized), after giving
effect to the following, without duplication: (i) all payments received by the
Issuer through such date from or on behalf of obligors on such Financed Eligible
Loans; (ii) all Purchase Amounts on Financed Eligible Loans received by the
Issuer through such date from the Seller, the Master Servicer or a Subservicer;
(iii) all Liquidation Proceeds and Realized Losses on Financed Eligible Loans
liquidated through such date; (iv) the aggregate amount of adjustments to
balances of Financed Eligible Loans permitted to be effected by the Master
Servicer or a Subservicer under the Master Servicing Agreement or its related
Subservicing Agreement, if any, recorded through such date; and (v) the
aggregate amount by which reimbursements by Guarantee Agencies of the unpaid
principal balance of defaulted Financed Eligible Loans through such date are
reduced from 100% to 97%, or other applicable percentage as required by the risk
sharing provisions of the Higher Education Act plus (b) moneys on deposit in the
Prefunding Account of the Acquisition Fund (excluding amounts that will become
Available Funds on the next Quarterly Distribution Date). The Pool Balance shall
be calculated by the Administrator and certified to the Trustee, upon which the
Trustee may conclusively rely with no duty to further examine or determine such
information.

        "PREFUNDING ACCOUNT" shall mean the Account by that name created in
Section 5.01(a) hereof within the Acquisition Fund and further described in
Section 5.02 hereof, including any Subaccounts created therein.

        "PRINCIPAL DISTRIBUTION AMOUNT" shall mean, with respect to each
Quarterly Distribution Date, as determined by the Administrator, the Outstanding
Amount less the product of (i) 99.01% and (ii) the Adjusted Pool Balance as of
the last day of the related Collection Period. Further, on the Note Final
Maturity Date for a Class of Notes, the Principal Distribution Amount on that
date also shall include the amount needed to reduce the Outstanding Amount of
such Class of Notes to zero.

        "PRINCIPAL OFFICE" shall mean the principal office of the party
indicated, as set forth in Section 9.01 hereof or elsewhere in this Indenture.

                                       20
<PAGE>

        "PRIORITY TERMINATION PAYMENT" shall mean, with respect to a Derivative
Product, any termination payment payable by the Issuer under such Derivative
Product relating to an early termination of such Derivative Product by the
Counterparty, as the non-defaulting party, following (i) a default in the
payment of a regularly scheduled payment by the Issuer thereunder, (ii) the
occurrence of an Event of Default specified in Section 6.01(d) hereof or (iii)
the Trustee's taking any action hereunder to liquidate the Trust Estate
following an Event of Default and acceleration of the Notes pursuant to Section
6.04 hereof.

        "PROGRAM" shall mean the Depositor's program for the origination and the
purchase of Eligible Loans, as the same may be modified from time to time.

        "PURCHASE AMOUNT" with respect to any Financed Eligible Loan shall mean
the amount required to prepay in full such Financed Eligible Loan under the
terms thereof including all accrued interest thereon and any unamortized
premium, it being acknowledged that any accrued and unpaid Interest Subsidy
Payments or Special Allowance Payments will continue to be payable to the
Trustee and constitute part of the Trust Estate.

        "QUARTERLY DISTRIBUTION DATE" shall mean the twenty-fifth (25th) day of
"January, April, July and October or, if such day is not a Business Day, the
immediately succeeding Business Day, commencing on July 25, 2008.

        "RATING" shall mean one of the rating categories of Fitch, Moody's and
S&P or any other Rating Agency, provided Fitch, Moody's and S&P or any other
Rating Agency, as the case may be, is currently rating the Notes.

        "RATING AGENCY" shall mean each of Fitch, Moody's and S&P and their
successors and assigns or any other rating agency requested by the Issuer to
maintain a Rating on any of the Notes.

        "RATING CONFIRMATION" shall mean a letter from each Rating Agency then
providing a Rating for any of the Notes, confirming that a proposed action,
failure to act, or other event specified therein will not, in and of itself,
result in a downgrade of any of the Ratings then applicable to the Notes, or
cause any Rating Agency to suspend, withdraw or qualify the Ratings then
applicable to the Notes.

        "REALIZED LOSS" shall mean the excess of the principal balance
(including any interest that had been or had been expected to be capitalized) of
any Liquidated Financed Eligible Loan over Liquidation Proceeds with respect to
such Financed Eligible Loan to the extent allocable to principal (including any
interest that had been or had been expected to be capitalized).

        "RECORD DATE" shall mean, with respect to a Quarterly Distribution Date,
the close of business on the day preceding such Quarterly Distribution Date.

        "REFERENCE BANKS" shall mean, with respect to a determination of LIBOR
for any Interest Accrual Period by the Administrator, four major banks in the
London interbank market selected by the Administrator.

                                       21
<PAGE>

        "REGISTERED OWNER" shall mean any Noteholder, and, with respect to a
Derivative Product, any Counterparty, unless the context otherwise requires.

        "REGULATIONS" shall mean the Regulations promulgated from time to time
by the Secretary or any Guaranty Agency guaranteeing Financed Eligible Loans.

        "RESERVE FUND" shall mean the Fund by that name created in Section
5.01(e) hereof and further described in Section 5.05 hereof, including any
Accounts and Subaccounts created therein.

        "S&P" shall mean Standard & Poor's Ratings Group, a Division of The
McGraw-Hill Companies, Inc., its successors and assigns.

        "SECRETARY" shall mean the Secretary of the United States Department of
Education or any successor to the pertinent functions thereof under the Higher
Education Act.

        "SELLER" shall mean Nelnet Student Loan Funding, LLC, and its successors
and assigns.

        "SERVICER'S REPORT" shall mean the servicer reports to be furnished to
the Issuer by the Master Servicer or a Subservicer pursuant to the Master
Servicing Agreement or its related Subservicing Agreement.

        "SERVICING FEE" shall mean the fees and expenses due to the Master
Servicer and any Subservicer under the terms of the Master Servicing Agreement
or its related Subservicing Agreement and the fees and expenses due to any
custodian under the terms of a Custodian Agreement.

        "SPECIAL ALLOWANCE PAYMENTS" shall mean the special allowance payments
authorized to be made by the Secretary by Section 438 of the Higher Education
Act, or similar allowances, if any, authorized from time to time by federal law
or regulation.

        "SPECIFIED RESERVE FUND BALANCE" shall mean, with respect to any
Quarterly Distribution Date, the greater of (a) 0.25% of the Pool Balance as of
the close of business on the last day of the related Collection Period; and (b)
0.10% of the Initial Pool Balance, provided that in no event will such balance
exceed the sum of the Outstanding Amount of the Notes and provided further, that
such Specified Reserve Fund Balance may be reduced with a Rating Confirmation.
The Specified Reserve Fund Balance shall be calculated by the Administrator and
certified to the Trustee, upon which certification the Trustee may conclusively
rely with no duty to further examine or determine such information.

        "STATE" shall mean the State of Delaware.

        "STUDENT LOAN PURCHASE AGREEMENT" shall mean the Loan Purchase
Agreement, dated as of May 1, 2008, between the Issuer and the Seller, as
amended and supplemented pursuant to the terms thereof and hereof.

        "SUBACCOUNT" shall mean any of the subaccounts which may be created and
established within any Account by this Indenture.

                                       22
<PAGE>

        "SUBORDINATE NOTES INTEREST TRIGGER" shall mean the period commencing on
the first Quarterly Distribution Date for which the Total Parity Ratio is less
than 97% and ending on the first Quarterly Distribution Date on which the Class
A Notes are no longer Outstanding.

        "SUBSERVICER" shall mean (a) Nelnet, Inc., (b) ACS Education Services,
Inc., (c) Great Lakes Educational Loan Services, Inc., (d) Sallie Mae Servicing,
a division of Sallie Mae, Inc. and (e) any other additional subservicer or
successor subservicer selected by the Issuer, including an affiliate of the
Issuer, so long as the Issuer obtains a Rating Confirmation as to each such
other subservicer.

        "SUBSERVICING AGREEMENT" shall mean, collectively or individually as the
context may require, (a) the Nelnet, Inc. Subservicing Agreement, dated as of
May 1, 2008, between the Master Servicer and Nelnet, Inc., as subservicer; (b)
the Federal FFEL Servicing Agreement, dated as of September 1, 2003, between
Nelnet, Inc. and its affiliates and ACS Education Services, Inc., as
subservicer, (c) the Student Loan Servicing Agreement, dated as of September 30,
1998, between NHELP-I, Inc. and Great Lakes Educational Loan Services, Inc., as
subservicer, as amended by Letter dated September 23, 2004 to apply to the
Issuer, (d) the Servicing Agreement, dated as of April 1, 1999, between Nelnet,
Inc. (as successor to InTuition, Inc.) and Sallie Mae Servicing, a division of
Sallie Mae, Inc. (as successor to USA Group Loan Services, Inc.), as
subservicer, and (e) any subservicing agreement between the Master Servicer and
any other Subservicer, each as amended and supplemented pursuant to the terms
thereof and hereof.

        "SUPPLEMENTAL INDENTURE" shall mean an agreement supplemental hereto
executed pursuant to Article VIII hereof.

        "TERMINATION PAYMENT" shall mean, with respect to a Derivative Product,
any termination payment payable by the Issuer under such Derivative Product
relating to an early termination of such Derivative Product by the Counterparty,
as the non-affected party or non-defaulting party, after the occurrence of a
termination event or event of default specified in such Derivative Product,
including any Priority Termination Payment.

        "THREE-MONTH LIBOR" or "TWO-MONTH LIBOR" shall mean, with respect to any
Interest Accrual Period, the London interbank offered rate for deposits in U.S.
dollars having the applicable Index Maturity as it appears on Reuters Screen
LIBOR01 Page, or another page of this or any other financial reporting service
in general use in the financial services industry, as of 11:00 a.m., London
time, on the related LIBOR Determination Date as determined by the
Administrator. If this rate does not appear on Reuters Screen LIBOR01 Page, or
another page of this or any other financial reporting service in general use in
the financial services industry, the rate for that day will be determined on the
basis of the rates at which deposits in U.S. dollars, having the applicable
Index Maturity and in a principal amount of not less than U.S. $1,000,000, are
offered at approximately 11:00 a.m., London time, on that LIBOR Determination
Date, to prime banks in the London interbank market by the Reference Banks. The
Administrator will request the principal London office of each Reference Bank to
provide a quotation of its rate. If the Reference Banks provide at least two
quotations, the rate for that day will be the arithmetic mean of the quotations.
If the Reference Banks provide fewer than two quotations, the rate for that day
will be the arithmetic mean of the rates quoted by major banks in New York City,
selected by the Administrator at approximately 11:00 a.m., New York City time,
on that LIBOR Determination Date, for loans in U.S. dollars to leading European
banks having the applicable Index Maturity and in a principal amount of not less
than U.S. $1,000,000. If the banks selected as described above are not providing
quotations, Three-Month LIBOR or Two-Month LIBOR, as the case may be, in effect
for the applicable Interest Accrual Period will be Three-Month LIBOR or
Two-Month LIBOR, as the case may be, in effect for the previous Interest Accrual
Period.

                                       23
<PAGE>

        "TOTAL PARITY RATIO" shall mean, on any Quarterly Distribution Date, (a)
the total assets of the Issuer (including, but not limited to, the Principal
Balance of, and accrued interest (including Interest Benefit Payments and
Special Allowance payments) on, the Financed Eligible Loans, any Guarantee
payments due on the Financed Eligible Loans and the amounts on deposit in the
Funds and Accounts (including any investment earnings thereon) as of the end of
the related Collection Period, divided by (b) the total liabilities of the
Issuer (including, but not limited to, the Outstanding Amount of the Notes plus
accrued interest thereon) as of the end of the related Collection Period. The
Total Parity Ratio shall be calculated by the Administrator and certified to the
Trustee upon which the Trustee may conclusively rely with no duty to further
examine or determine such information.

        "TRUST AGREEMENT" shall mean the Trust Agreement, dated as of May 6,
2008, by and between the Depositor and the Delaware Trustee, as may be amended
pursuant to the terms thereof.

        "TRUST AUCTION DATE" shall have the meaning set forth in Section 10.04
hereof.

        "TRUST ESTATE" shall mean the property described as such in the granting
clauses hereto.

        "TRUST INDENTURE ACT" shall mean the Trust Indenture Act of 1939, as
amended, and as in force at the date as of which this Indenture was executed,
except as provided in Section 8.04 hereof.

        "TRUSTEE" shall mean Zions First National Bank, acting in its capacity
as Trustee under this Indenture, or any successor trustee designated pursuant to
this Indenture.

        "TRUSTEE FEE" shall mean an amount equal to the annual amount set forth
in the Trustee Fee Letter, dated May 1, 2008. Such fee shall be in satisfaction
of the Trustee's compensation as trustee under this Indenture and as eligible
lender trustee under the Eligible Lender Trust Agreement.

        "TWO-MONTH LIBOR" shall have the meaning ascribed to such term under the
definition of "Three-Month LIBOR."

        Words importing the masculine gender include the feminine gender, and
words importing the feminine gender include the masculine gender. Words
importing persons include firms, associations and corporations. Words importing
the singular number include the plural number and vice versa. Additional terms
are defined in the body of this Indenture.

        All references herein to "New York City time" shall be presumed to refer
to "Eastern time" unless the Trustee is notified in writing to the contrary.

                                       24
<PAGE>

                                   ARTICLE II

                         NOTE DETAILS AND FORM OF NOTES

        SECTION 2.01. NOTE DETAILS. The Notes, together with the Trustee's
certificate of authentication, shall be in substantially the forms set forth in
Exhibit B hereto, with such appropriate insertions, omissions, substitutions and
other variations as are required or permitted by this Indenture and may have
such letters, numbers or other marks of identification and such legends or
endorsements placed thereon as may, consistently herewith, be determined by the
officers executing the Notes, as evidenced by their execution of the Notes. Any
portion of the text of any Note may be set forth on the reverse thereof, with an
appropriate reference thereto on the face of the Note.

        The definitive Notes shall be typewritten, printed, lithographed or
engraved or produced by any combination of these methods (with or without steel
engraved borders), all as determined by the Authorized Representatives executing
such Notes, as evidenced by their execution of such Notes.

        Each Note shall be dated the Date of Issuance. The terms of the Notes
set forth in Exhibit B hereto are part of the terms of this Indenture.

        SECTION 2.02. EXECUTION, AUTHENTICATION AND DELIVERY OF NOTES. The Notes
shall be executed in the name and on behalf of the Issuer by the manual or
facsimile signature of an Authorized Representative. Any Note may be signed
(manually or by facsimile) or attested on behalf of the Issuer by any person
who, at the date of such act, shall hold the proper office or position,
notwithstanding that at the date of authentication, issuance or delivery, such
person may have ceased to hold such office or position.

        The Trustee shall upon Issuer Order authenticate and deliver Notes for
original issue in an aggregate principal amount of $1,350,000,000. The aggregate
principal amount of Notes Outstanding at any time may not exceed such amount
except as provided in Section 2.04 hereof.

        Each Note shall be dated the date of its authentication. The Notes shall
be issuable as registered Notes, in minimum denominations of $100,000 and in
integral multiples of $1,000 in excess thereof (the "Authorized Denominations").

        No Note shall be entitled to any benefit under this Indenture or be
valid or obligatory for any purpose, unless there appears on such Note a
certificate of authentication in accordance with Section 2.05 hereof.

        Each Class of Notes will be initially issued in Book-Entry Form and will
be represented by a book-entry note certificate deposited on the Date of
Issuance with Zions First National Bank, as custodian for the initial Clearing
Agency and registered in the name of "Cede & Co." as initial nominee for the
initial Clearing Agency.

                                       25
<PAGE>

        SECTION 2.03. REGISTRATION, TRANSFER AND EXCHANGE OF NOTES; PERSONS
TREATED AS REGISTERED OWNERS. The Issuer shall cause books for the registration
and for the transfer of the Notes as provided in this Indenture to be kept by
the Trustee which is hereby appointed the transfer agent of the Issuer for the
Notes. Notwithstanding such appointment and with the prior written consent of
the Issuer, the Trustee is hereby authorized to make any arrangements with other
institutions which it deems necessary or desirable in order that such
institutions may perform the duties of transfer agent for the Notes. Upon
surrender for transfer of any Note at the Principal Office of the Trustee, duly
endorsed for transfer or accompanied by an assignment duly executed by the
Registered Owner or his attorney duly authorized in writing, the Issuer shall
execute and the Trustee shall authenticate and deliver in the name of the
transferee or transferees a new fully registered Note or Notes of the same
interest rate and for a like Class and aggregate principal amount of the same
Note Final Maturity Date.

        Notes may be exchanged at the Principal Office of the Trustee for a like
aggregate principal amount of fully registered Notes of the same Class, interest
rate and Note Final Maturity Date in Authorized Denominations. The Issuer shall
execute and the Trustee shall authenticate and deliver Notes which the
Registered Owner making the exchange is entitled to receive, bearing numbers not
contemporaneously outstanding. The execution by the Issuer of any fully
registered Note of any Authorized Denomination shall constitute full and due
authorization of such denomination and the Trustee shall thereby be authorized
to authenticate and deliver such fully registered Note.

        As to any Note, the person in whose name the same shall be registered
shall be deemed and regarded as the absolute owner thereof for all purposes, and
payment of either principal or interest on any fully registered Note shall be
made only to or upon the written order of the Registered Owner thereof or his
legal representative but such registration may be changed as hereinabove
provided. All such payments shall be valid and effectual to satisfy and
discharge the liability upon such Note to the extent of the sum or sums paid.

        Each Registered Owner and each transferee of a Note shall be deemed to
represent and warrant that either (a) it is not acquiring the Note directly or
indirectly for, or on behalf of, an ERISA plan or any entity whose underlying
assets are deemed to be plan assets of such ERISA plan; or (b)(i) the
acquisition and holding of the Notes will not result in a nonexempt prohibited
transaction under Section 406 of ERISA or Section 4975 of the Code or similar
law and (ii) if the Notes are subsequently deemed to be "plan assets" pursuant
to the regulations set forth at 29 C.F.R. ss. 2510.3-101, it will promptly
dispose of the Notes.

        The Trustee shall require the payment by any Registered Owner requesting
exchange or transfer of any tax or other governmental charge required to be paid
with respect to such exchange or transfer. The applicant for any such transfer
or exchange may be required to pay all taxes and governmental charges in
connection with such transfer or exchange, other than exchanges pursuant to
Section 2.07 hereof.

        SECTION 2.04. LOST, STOLEN, DESTROYED AND MUTILATED NOTES. Upon receipt
by the Trustee of evidence satisfactory to it of the ownership of and the loss,
theft, destruction or mutilation of any Note and, in the case of a lost, stolen
or destroyed Note, of indemnity satisfactory to it, and upon surrender and
cancellation of the Note, if mutilated, (a) the Issuer shall execute, and the
Trustee shall authenticate and deliver, a replacement Note of the same Class,
interest rate, Note Final Maturity Date and denomination in lieu of such lost,
stolen, destroyed or mutilated Note or (b) if such lost, stolen, destroyed or
mutilated Note shall have matured or within 15 days shall be due and payable, in
lieu of executing and delivering a new Note as aforesaid, the Issuer may pay
such Note. Any such new Note shall bear a number not contemporaneously
outstanding. The applicant for any such new Note may be required to pay all
taxes and governmental charges and all expenses and charges of the Issuer and of
the Trustee in connection with the issuance of such Note. All Notes shall be
held and owned upon the express condition that, to the extent permitted by law,
the foregoing conditions are exclusive with respect to the replacement and
payment of mutilated, destroyed, lost or stolen Notes, negotiable instruments or
other securities.

                                       26
<PAGE>

        SECTION 2.05. TRUSTEE'S AUTHENTICATION CERTIFICATE. The Trustee's
authentication certificate upon any Notes shall be substantially in the form
attached to the Notes. No Note shall be secured hereby or entitled to the
benefit hereof, or shall be valid or obligatory for any purpose, unless a
certificate of authentication, substantially in such form, has been duly
executed by the Trustee; and such certificate of the Trustee upon any Note shall
be conclusive evidence and the only competent evidence that such Note has been
authenticated and delivered hereunder. The Trustee's certificate of
authentication shall be deemed to have been duly executed by it if manually
signed by an authorized officer or signatory of the Trustee, but it shall not be
necessary that the same person sign the certificate of authentication on all of
the Notes issued hereunder.

        SECTION 2.06. CANCELLATION AND DESTRUCTION OF NOTES BY THE TRUSTEE.
Whenever any Outstanding Notes shall be delivered to the Trustee for the
cancellation thereof pursuant to this Indenture, upon payment of the principal
amount and interest represented thereby, or for replacement pursuant to Section
2.03 hereof, such Notes shall be promptly cancelled and, within a reasonable
time, cremated or otherwise destroyed by the Trustee and counterparts of a
certificate of destruction evidencing such cremation or other destruction shall
be furnished by the Trustee to the Issuer.

        SECTION 2.07. TEMPORARY NOTES. Pending the preparation of definitive
Notes, the Issuer may execute and the Trustee shall authenticate and deliver
temporary Notes. Temporary Notes shall be issuable as fully registered Notes
without coupons, of any denomination, and substantially in the form of the
definitive Notes but with such omissions, insertions and variations as may be
appropriate for temporary Notes, all as may be determined by the Issuer. Every
temporary Note shall be executed by the Issuer and be authenticated by the
Trustee upon the same conditions and in substantially the same manner, and with
like effect, as the definitive Notes. As promptly as practicable the Issuer
shall execute and shall furnish definitive Notes and thereupon temporary Notes
may be surrendered in exchange therefor without charge at the principal office
of the Trustee, and the Trustee shall authenticate and deliver in exchange for
such temporary Notes a like aggregate principal amount of definitive Notes.
Until so exchanged the temporary Notes shall be entitled to the same benefits
under this Indenture as definitive Notes.

        SECTION 2.08. ISSUANCE OF NOTES. The Issuer shall have the authority,
upon complying with the provisions of this Article, to issue and deliver the
Notes which shall be secured by the Trust Estate. In addition, the Issuer may
enter into any Derivative Products it deems necessary or desirable with respect
to any or all of the Notes.

                                       27
<PAGE>

        SECTION 2.09. DEFINITIVE NOTES. If (a) the Administrator advises the
Trustee in writing that the Clearing Agency is no longer willing or able to
discharge its responsibilities with respect to the Notes, and the Administrator
is unable to locate a successor; (b) the Administrator at its option, with the
consent of the applicable Clearing Agency Participants, advises the Trustee in
writing that it elects to terminate the book-entry system through the Clearing
Agency; or (c) after the occurrence of an Event of Default, or a default by the
Master Servicer, a Subservicer or the Administrator under the Master Servicing
Agreement, its related Servicing Agreement or the Administration Agreement,
respectively, Noteholders representing beneficial interests aggregating at least
a majority of the Outstanding Amount of the Notes advise the Clearing Agency
(which shall then notify the Trustee) in writing that the continuation of a
book-entry system through the Clearing Agency is no longer in the best interests
of the Noteholders and the applicable Clearing Agency Participants consent to
the termination of the book-entry system through the Clearing Agency, then the
Trustee shall cause the Clearing Agency to notify all Noteholders, through the
Clearing Agency, of the occurrence of any such event and of the availability of
definitive Notes to Noteholders requesting the same. Upon surrender to the
Trustee of the typewritten Notes representing the book-entry Notes by the
Clearing Agency, accompanied by registration instructions, the Issuer shall
execute and the Trustee shall authenticate the definitive Notes in accordance
with the instructions of the Clearing Agency. Neither the Issuer nor the Trustee
shall be liable for any delay in delivery of such instructions and may
conclusively rely on, and shall be protected in relying on, such instructions.
Upon the issuance of definitive Notes, the Trustee shall recognize the holders
of the definitive Notes as Registered Owners.

        SECTION 2.10. PAYMENT OF PRINCIPAL AND INTEREST.

                (a) Each Class of Notes shall accrue interest as provided in the
        forms of the Class A-1 Notes, the Class A-2 Notes, the Class A-3 Notes,
        the Class A-4 Notes and the Class B Notes, set forth in Exhibits B-1,
        B-2, B-3, B-4 and B-5 respectively, hereto. Such interest shall be
        payable with respect to each Class of Notes on each Quarterly
        Distribution Date as specified in Section 5.04(c) hereof, subject to
        Section 4.01 hereof. Any installment of interest or principal, if any,
        payable on any Note which is punctually paid or duly provided for by the
        Issuer on the applicable Quarterly Distribution Date shall be paid to
        the Person in whose name such Note is registered on the Record Date by
        check mailed first-class, postage prepaid to such Person's address as it
        appears on the records of the Trustee on such Record Date, except that,
        unless definitive Notes have been issued pursuant to Section 2.09
        hereof, with respect to Notes registered on the Record Date in the name
        of the nominee of the Clearing Agency (initially, such nominee to be
        Cede & Co.), payment shall be made by wire transfer in immediately
        available funds to the account designated by such nominee and except for
        the final installment of principal payable with respect to such Note on
        a Quarterly Distribution Date or on the Note Final Maturity Date for
        such Note which shall be payable as provided below. The amount of
        interest distributable to Noteholders of the Notes for each $1,000 in
        principal amount will be calculated by applying the applicable interest
        rate for the Interest Accrual Period to the principal amount of $1,000,
        multiplying that product by the actual number of days in the Interest
        Accrual Period divided by 360, and rounding the resulting percentage
        figure to the fifth decimal point.

                                       28
<PAGE>

                (b) The principal of each Note shall be payable in installments
        on each Quarterly Distribution Date as provided in Section 5.04(c)
        hereof. Notwithstanding the foregoing, the entire unpaid principal
        amount of each Class of Notes shall be due and payable, if not
        previously paid, on the Note Final Maturity Date for such Class of Notes
        and on the date on which an Event of Default shall have occurred and be
        continuing if the Trustee or the Registered Owners of the Notes
        representing not less than a majority of the Outstanding Amount of the
        Notes have declared the Notes to be immediately due and payable in the
        manner provided in Section 6.02 hereof. The Trustee shall notify the
        Person in whose name a Note is registered on or prior to the close of
        business on the Record Date preceding the applicable Quarterly
        Distribution Date on which the Issuer expects that the final installment
        of principal of and interest on such Note will be paid. Such notice
        shall be mailed or transmitted by facsimile or electronic delivery prior
        to such final Quarterly Distribution Date and shall specify that such
        final installment will be payable only upon presentation and surrender
        of such Note and shall specify the place where such Note may be
        presented and surrendered for payment of such installment.

        SECTION 2.11. NOTICES TO CLEARING AGENCY. Whenever a notice or other
communication is required under this Indenture to be given to Noteholders,
unless and until Definitive Notes shall have been issued to Noteholders pursuant
to Section 2.09 hereof, the Trustee shall give all such notices and
communications specified herein to the applicable Clearing Agency.

                                  ARTICLE III

                 PARITY AND PRIORITY OF LIEN; OTHER OBLIGATIONS;
                             AND DERIVATIVE PRODUCTS

        SECTION 3.01. PARITY AND PRIORITY OF LIEN. The provisions, covenants and
agreements herein set forth to be performed by or on behalf of the Issuer shall
be for the equal benefit, protection and security of the Registered Owners of
any and all of the Obligations, all of which, shall be of equal rank without
preference, priority or distinction of any of the Obligations over any other
thereof, except as expressly provided in this Indenture with respect to certain
payment and other priorities.

        SECTION 3.02. OTHER OBLIGATIONS. The Available Funds and other moneys,
Financed Eligible Loans, securities, evidences of indebtedness, interests,
rights and properties pledged under this Indenture are and will be owned by the
Issuer free and clear of any pledge, lien, charge or encumbrance thereon or with
respect thereto prior to, of equal rank with or subordinate to the respective
pledges created by this Indenture, except as otherwise expressly provided
herein, and all action on the part of the Issuer to that end has been duly and
validly taken. If any Financed Eligible Loan is found to have been subject to a
lien at the time such Financed Eligible Loan was acquired, the Issuer shall
cause such lien to be released, shall purchase such Financed Eligible Loan from
the Trust Estate for a purchase price equal to its principal amount plus any
unamortized premium, if any, and interest accrued thereon or shall replace such
Financed Eligible Loan with another Eligible Loan with substantially identical
characteristics which replacement Eligible Loan shall be free and clear of liens
at the time of such replacement. Except as otherwise provided herein, the Issuer
shall not create or voluntarily permit to be created any debt, lien or charge on
the Financed Eligible Loans which would be on a parity with, subordinate to, or
prior to the lien of this Indenture; shall not do or omit to do or suffer to be
done or omitted to be done any matter or things whatsoever whereby the lien of
this Indenture or the priority of such lien for the Obligations hereby secured

                                       29
<PAGE>

might or could be lost or impaired; and will pay or cause to be paid or will
make adequate provisions for the satisfaction and discharge of all lawful claims
and demands which if unpaid might by law be given precedence to or any equality
with this Indenture as a lien or charge upon the Financed Eligible Loans;
provided, however, that nothing in this Section shall require the Issuer to pay,
discharge or make provision for any such lien, charge, claim or demand so long
as the validity thereof shall be by it in good faith contested, unless thereby,
in the opinion of the Trustee, the same will endanger the security for the
Obligations; and provided further that any subordinate lien hereon (i.e.,
subordinate to the lien securing the Class A Obligations and the Class B
Obligations) shall be entitled to no payment from the Trust Estate, nor may any
remedy be exercised with respect to such subordinate lien against the Trust
Estate until all Obligations have been paid or deemed paid hereunder.

        SECTION 3.03. DERIVATIVE PRODUCTS; COUNTERPARTY PAYMENTS; ISSUER
DERIVATIVE PAYMENTS. The Issuer hereby authorizes and directs the Trustee to
acknowledge and agree to any Derivative Product hereafter entered into by the
Issuer and a Counterparty under which (a) the Issuer may be required to make,
from time to time, payments to a Counterparty and (b) the Trustee may receive,
from time to time, Counterparty Payments for the account of the Issuer. No
Derivative Product shall be entered into subsequent to the Date of Issuance
unless the Trustee shall have received a Rating Confirmation from each Rating
Agency that such Derivative Product will not adversely affect the Rating on any
of the Notes.

                                   ARTICLE IV

                       PROVISIONS APPLICABLE TO THE NOTES;
                              DUTIES OF THE ISSUER

        SECTION 4.01. PAYMENT OF PRINCIPAL AND INTEREST. The Issuer covenants
that it will promptly pay, but solely from the Trust Estate, the principal of
and interest, if any, on each and every Obligation issued under the provisions
of this Indenture at the places, on the dates and in the manner specified herein
and in said Obligations according to the true intent and meaning thereof. The
Obligations shall be and are hereby declared to be payable from and equally
secured, except as specifically provided in this Indenture with respect to
certain payment and other priorities, by an irrevocable first lien on and pledge
of the properties constituting the Trust Estate, subject to the application
thereof as permitted by this Indenture, but in no event shall the Registered
Owners or any Counterparty have any right to possession or control of any
Financed Eligible Loans, which shall be held only by the Trustee or its agent or
bailee.

        SECTION 4.02. COVENANTS AS TO ADDITIONAL CONVEYANCES. At any and all
times, the Issuer will duly execute, acknowledge and deliver, or will cause to
be done, executed and delivered, all and every such further acts, conveyances,
transfers and assurances in law as the Trustee shall reasonably require for the
better conveying, transferring and pledging and confirming unto the Trustee, all
and singular, the properties constituting the Trust Estate hereby transferred
and pledged, or intended so to be transferred and pledged.

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<PAGE>

        SECTION 4.03. FURTHER COVENANTS OF THE ISSUER.

                (a) The Issuer will cause financing statements and continuation
        statements with respect thereto at all times to be filed in the office
        of the Secretary of State of the State and any other jurisdiction
        necessary to perfect and maintain the security interest granted by the
        Issuer and the Eligible Lender Trustee hereunder. The Issuer and the
        Eligible Lender Trustee hereby irrevocably authorize the Trustee to file
        any and all financing statements and amendments thereto as may be
        required or advisable in such form as is determined by the Trustee in
        order to perfect or to continue the perfection of the security interest
        in the Trust Estate, in each case, on behalf of the Issuer and the
        Eligible Lender Trustee. Such financing statements and any amendments
        thereto may describe the Trust Estate as being of an equal or greater
        scope or with greater or lesser detail than as set forth in the
        definition of "Trust Estate" (the terms of which shall be binding on the
        Issuer and the Eligible Lender Trustee).

                (b) The Issuer will duly and punctually keep, observe and
        perform each and every term, covenant and condition on its part to be
        kept, observed and performed, contained in this Indenture and the other
        agreements to which the Issuer is a party pursuant to the transactions
        contemplated herein, including but not limited to the Basic Documents to
        which it is a party, the Guarantee Agreements and the Certificate of
        Insurance, and will punctually perform all duties required by the Trust
        Agreement and the laws of the State.

                (c) The Issuer shall be operated on the basis of its Fiscal
        Year.

                (d) The Issuer shall cause to be kept full and proper books of
        records and accounts, in which full, true and proper entries will be
        made of all dealings, business and affairs of the Issuer which relate to
        the Notes and any Derivative Product.

                (e) The Issuer, upon written request of the Trustee, will permit
        at all reasonable times the Trustee or its agents, accountants and
        attorneys, to examine and inspect the property, books of account,
        records, reports and other data relating to the Financed Eligible Loans,
        and will furnish the Trustee such other information as it may reasonably
        request. The Trustee shall be under no duty to make any such examination
        unless requested in writing to do so by the Registered Owners of 66-2/3%
        in collective aggregate principal amount of the Notes at the time
        Outstanding, and unless such Registered Owners shall have offered the
        Trustee security and indemnity satisfactory to it against any costs,
        expenses and liabilities which might be incurred thereby.

                (f) The Issuer shall cause an annual audit to be made by an
        independent auditing firm of national reputation and file one copy
        thereof with the Trustee and each Rating Agency within 150 days of the
        close of each Fiscal Year. The Trustee shall be under no obligation to
        review or otherwise analyze such audit.

                (g) The Issuer covenants that all Financed Eligible Loans upon
        receipt thereof shall be delivered to the Trustee or its agent or bailee
        to be held pursuant to this Indenture and pursuant to the Master
        Servicing Agreement, a Subservicing Agreement or a Custodian Agreement.

                                       31
<PAGE>

                (h) Notwithstanding anything to the contrary contained herein,
        except upon the occurrence and during the continuance of an Event of
        Default hereunder, the Issuer hereby expressly reserves and retains the
        privilege to receive and, subject to the terms and provisions of this
        Indenture, to keep or dispose of, claim, bring suits upon or otherwise
        exercise, enforce or realize upon its rights and interest in and to the
        Financed Eligible Loans and the proceeds and collections therefrom, and
        neither the Trustee nor any Registered Owner shall in any manner be or
        be deemed to be an indispensable party to the exercise of any such
        privilege, claim or suit and the Trustee shall be under no obligation
        whatsoever to exercise any such privilege, claim or suit; provided,
        however, that the Trustee shall have and retain possession or control of
        the Financed Eligible Loans pursuant to Section 5.02 hereof (which
        Financed Eligible Loans may be held by the Trustee's agent or bailee) so
        long as such loans are subject to the lien of this Indenture.

        SECTION 4.04. ENFORCEMENT OF MASTER SERVICING AGREEMENT AND SUBSERVICING
AGREEMENTS. The Issuer shall comply with, shall require the Master Servicer to
comply with and shall cause the Master Servicer to require the Subservicers to
comply with the following whether or not the Issuer is otherwise in default
under this Indenture:

                (a) cause to be diligently enforced and taken all reasonable
        steps, actions and proceedings necessary for the enforcement of all
        terms, covenants and conditions of the Master Servicing Agreement and
        all Subservicing Agreements, including the prompt payment of all amounts
        due the Issuer thereunder, including, without limitation, all principal
        and interest payments, and Guarantee payments which relate to any
        Financed Eligible Loans and cause the Master Servicer and each
        Subservicer to specify whether payments received by it represent
        principal or interest;

                (b) not permit the release of the obligations of the Master
        Servicer and any Subservicer under the Master Servicing Agreement and
        any Subservicing Agreement except in conjunction with amendments or
        modifications permitted by paragraph (h) below;

                (c) at all times, to the extent permitted by law, cause to be
        defended, enforced, preserved and protected the rights and privileges of
        the Issuer, the Trustee and the Registered Owners under or with respect
        to the Master Servicing Agreement and each Subservicing Agreement;

                (d) at its own expense, the Issuer shall duly and punctually
        perform and observe each of its obligations to the Master Servicer or a
        Subservicer under the Master Servicing Agreement or its related
        Subservicing Agreement in accordance with the terms thereof;

                (e) the Issuer agrees to give the Trustee and each Rating Agency
        prompt written notice of each default on the part of the Master Servicer
        or a Subservicer of its obligations under the Master Servicing Agreement
        or its related Subservicing Agreement coming to the Issuer's attention;

                                       32
<PAGE>

                (f) the Issuer shall not waive any default by the Master
        Servicer or a Subservicer under the Master Servicing Agreement or its
        related Subservicing Agreement without the written consent of the
        Trustee and the giving of written notice to each Rating Agency;

                (g) the Issuer shall cause the Master Servicer and each
        Subservicer to deliver to the Trustee and the Issuer, on or before March
        30 of each year, beginning with March 30, 2009, a certificate stating
        that (i) a review of the activities of the Master Servicer and each
        Subservicer during the preceding calendar year and of its performance
        under the Master Servicing Agreement and its related Subservicing
        Agreement has been made under the supervision of the officer signing
        such certificate and (ii) to the best of such officers' knowledge, based
        on such review, the Master Servicer and such Subservicer has fulfilled
        all its obligations under the Master Servicing Agreement and its related
        Subservicing Agreement throughout such year, or, there has been a
        default in the fulfillment of any such obligation, specifying each such
        default known to such officer and the nature and stature thereof. The
        Issuer shall send copies of such annual certificate of the Master
        Servicer and each Subservicer to each Rating Agency; and

                (h) not consent or agree to or permit any amendment or
        modification of the Master Servicing Agreement or any Subservicing
        Agreement which will in any manner materially adversely affect the
        rights or security of the Registered Owners. The Issuer and the Trustee
        shall be entitled to receive and rely upon an opinion of counsel that
        any such amendment or modification will not materially adversely affect
        the rights or security of the Registered Owners.

        SECTION 4.05. PROCEDURES FOR TRANSFER OF FUNDS. In any instance where
this Indenture requires a transfer of funds or money from one Fund to another, a
transfer of ownership in investments or an undivided interest therein may be
made in any manner agreeable to the Issuer and the Trustee, and in the
calculation of the amount transferred, interest on the investment which has or
will accrue before the date the money is needed in the fund to which the
transfer is made shall not be taken into account or considered as money on hand
at the time of such transfer.

        SECTION 4.06. ADDITIONAL COVENANTS WITH RESPECT TO THE HIGHER EDUCATION
ACT. The Issuer covenants that it will cause the Trustee to be, or replace the
Trustee with, an Eligible Lender under the Higher Education Act, that it will
acquire or cause to be acquired Eligible Loans originated and held only by an
Eligible Lender and that it will not dispose of or deliver any Financed Eligible
Loans or any security interest in any such Financed Eligible Loans to any party
who is not an Eligible Lender so long as the Higher Education Act or Regulations
adopted thereunder require an Eligible Lender to be the owner or holder of
Guaranteed Eligible Loans; provided, however, that nothing above shall prevent
the Issuer from delivering the Eligible Loans to the Master Servicer, a
Subservicer or a Guaranty Agency. The Registered Owners of the Notes shall not
in any circumstances be deemed to be the owner or holder of the Guaranteed
Eligible Loans.

                                       33
<PAGE>

        The Issuer, or the Administrator on behalf of the Issuer, shall be
responsible for each of the following actions with respect to the Higher
Education Act:

                (a) the Issuer, or the Administrator on behalf of the Issuer,
        shall be responsible for dealing with the Secretary with respect to the
        rights, benefits and obligations, under the Certificates of Insurance,
        including but not limited to the payment of all of the fees owed with
        respect to the Financed Eligible Loans, and the Issuer, or the
        Administrator on behalf of the Issuer, shall be responsible for dealing
        with the Guaranty Agencies with respect to the rights, benefits and
        obligations under the Guarantee Agreements with respect to the Financed
        Eligible Loans;

                (b) the Issuer, or the Administrator on behalf of the Issuer,
        shall cause to be diligently enforced, and shall cause to be taken all
        reasonable steps, actions and proceedings necessary or appropriate for
        the enforcement of all terms, covenants and conditions of all Financed
        Eligible Loans and agreements in connection therewith, including the
        prompt payment of all principal and interest payments and all other
        amounts due thereunder;

                (c) the Issuer, or the Administrator on behalf of the Issuer,
        shall cause the Financed Eligible Loans to be serviced by entering into
        the Master Servicing Agreement or other agreement with the Master
        Servicer for the collection of payments made for, and the administration
        of the accounts of, the Financed Eligible Loans;

                (d) the Issuer, or the Administrator on behalf of the Issuer,
        shall comply, and shall cause all of its officers, directors, employees
        and agents to comply, with the provisions of the Higher Education Act
        and any regulations or rulings thereunder, with respect to the Financed
        Eligible Loans;

                (e) the Issuer, or the Administrator on behalf of the Issuer,
        shall cause all Available Funds, including the benefits of the Guarantee
        Agreements, the Interest Benefit Payments and the Special Allowance
        Payments, to flow to the Trustee. The Trustee shall have no liability
        for actions taken at the direction of the Issuer or the Administrator,
        except for negligence or willful misconduct in the performance of its
        express duties hereunder. The Trustee shall have no obligation to
        administer, service or collect the loans in the Trust Estate or to
        maintain or monitor the administration, servicing or collection of such
        loans; and

                (f) the Issuer, or the Administrator on behalf of the Issuer,
        shall cause each Financed Eligible Loan evidenced by a Master Promissory
        Note in the form mandated by Section 432(m)(1) of the Higher Education
        Act to be acquired pursuant to a Student Loan Purchase Agreement with
        the Seller containing language similar to the following:

                                       34
<PAGE>

                      "The Seller hereby represents and warrants that the Seller
               is transferring all of its right title and interest in the MPN
               Loan to the Trustee, that it has not assigned any interest in
               such MPN Loan (other than security interests that have been
               released or ownership interests that the Seller has reacquired)
               to any person other than the Trustee, and that no prior holder of
               the MPN Loan has assigned any interest in such MPN Loan (other
               than security interests that have been released or ownership
               interests that such prior holder has reacquired) to any Person
               other than a predecessor in title to the Seller. The Seller
               hereby covenants that the Seller shall not attempt to transfer to
               any other Person any interest in any MPN Loan assigned hereunder.
               The Seller hereby authorizes the Trustee to file a UCC-1
               financing statement identifying the Seller as debtor and the
               Trustee as secured party and describing the MPN Loan sold
               pursuant to this Agreement. The preparation or filing of such
               UCC-1 financing statement is solely for additional protection of
               the Trustee's interest in the MPN Loans and shall not be deemed
               to contradict the express intent of the Seller and the Trustee
               that the transfer of MPN Loans under this Agreement is an
               absolute assignment of such MPN Loans and is not a transfer of
               such MPN Loans as security for a debt."

        The Trustee shall not be deemed to be the designated agent for the
purposes of this Section unless it has agreed in writing to be such agent.

        SECTION 4.07. FINANCED ELIGIBLE LOANS; COLLECTIONS THEREOF; ASSIGNMENT
THEREOF. The Issuer, through the Master Servicer and one or more Subservicers,
shall diligently collect all principal and interest payments on all Financed
Eligible Loans, and all Interest Benefit Payments, insurance, guarantee and
default claims and Special Allowance Payments which relate to such Financed
Eligible Loans; provided, however, the Issuer may offer interest rate reductions
with respect to the Financed Eligible Loans which result in rates of interest
not less than those shown in the cash flow analyses provided to each Rating
Agency on the Date of Issuance, and provided further that such rates of interest
may be further reduced if a Rating Confirmation is obtained, based on new cash
flow analyses containing such assumptions as the Issuer shall reasonably
determine. The Issuer shall cause the filing and assignment of such claims
(prior to the timely filing deadline for such claims under the Regulations) by
the Master Servicer or the appropriate Subservicer. The Issuer will comply with
the Higher Education Act and Regulations which apply to the Program and to such
Financed Eligible Loans.

        SECTION 4.08. APPOINTMENT OF AGENTS, DIRECTION TO TRUSTEE, ETC. The
Issuer shall employ and appoint all employees, agents, consultants and attorneys
which it may consider necessary. No member of the board of directors or officer
of the Administrator, either singly or collectively, shall be personally liable
for any act or omission not willfully fraudulent or mala fide. The Issuer hereby
directs the Trustee to enter into this Indenture, the Administration Agreement,
the Custodian Agreements and the Investment Agreement. The Issuer hereby directs
the Eligible Lender Trustee to enter into this Indenture, the Guarantee
Agreements, the Custodian Agreements and the Eligible Lender Trust Agreement.

        SECTION 4.09. CAPACITY TO SUE. The Issuer shall have the power and
capacity to sue and to be sued on matters arising out of or relating to the
financing of the Financed Eligible Loans.

                                       35
<PAGE>

        SECTION 4.10. CONTINUED EXISTENCE; SUCCESSOR TO ISSUER. The Issuer
agrees that it will do or cause to be done all things necessary to preserve and
keep in full force and effect its existence, rights and franchises as a Delaware
statutory trust, except as otherwise permitted by this Section. The Issuer
further agrees that it will not (a) sell, transfer or otherwise dispose of all
or substantially all, of its assets (except Financed Eligible Loans if such
sale, transfer or disposition will discharge this Indenture in accordance with
Article X hereof); (b) consolidate with or merge into another entity; or (c)
permit one or more other entities to consolidate with or merge into it. The
preceding restrictions in clauses (a), (b) and (c) above shall not apply to a
transaction if the transferee or the surviving or resulting entity, if other
than the Issuer, by proper written instrument for the benefit of the Trustee,
irrevocably and unconditionally assumes the obligation to perform and observe
the agreements and obligations of the Issuer under this Indenture.

        If a transfer is made as provided in this Section, the provisions of
this Section shall continue in full force and effect and no further transfer
shall be made except in compliance with the provisions of this Section.

        SECTION 4.11. AMENDMENT OF STUDENT LOAN PURCHASE AGREEMENTS. The Issuer
shall notify the Trustee in writing of any proposed amendments to any existing
Student Loan Purchase Agreement. No such amendment shall become effective unless
and until the Trustee consents thereto in writing. The consent of the Trustee
shall not be unreasonably withheld and shall not be withheld if the Trustee
receives an opinion of counsel acceptable to it that such an amendment is
required by the Higher Education Act and is not materially prejudicial to the
Registered Owners.

        SECTION 4.12. REPRESENTATIONS; NEGATIVE COVENANTS.

                (a) The Issuer hereby makes the following representations and
        warranties to the Trustee on which the Trustee relies in authenticating
        the Notes and on which the Registered Owners have relied in purchasing
        the Notes. Such representations and warranties shall survive the
        transfer and assignment of the Trust Estate to the Trustee.

                        (i) ORGANIZATION AND GOOD STANDING. The Issuer is duly
                organized and validly existing under the laws of the State, and
                has the power to own its assets and to transact the business in
                which it presently engages.

                        (ii) DUE QUALIFICATION. The Issuer is duly qualified to
                do business and is in good standing, and has obtained all
                material necessary licenses and approvals, in all jurisdictions
                where the failure to be so qualified, have such good standing or
                have such licenses or approvals would have a material adverse
                effect on the Issuer's business and operations or in which the
                actions as required by this Indenture require or will require
                such qualification.

                        (iii) AUTHORIZATION. The Issuer has the power, authority
                and legal right to create and issue the Notes; to execute,
                deliver and perform this Indenture; and to grant the Trust
                Estate to the Trustee; furthermore, the creation and issuance of
                the Notes; execution, delivery and performance of this
                Indenture; and grant of the Trust Estate to the Trustee have
                been duly authorized by the Issuer by all necessary statutory
                trust action.

                                       36
<PAGE>

                        (iv) BINDING OBLIGATION. This Indenture, assuming due
                authorization, execution and delivery by the Trustee; the Notes
                in the hands of the Registered Owners thereof; and the Issuer
                Derivative Payments constitute legal, valid and binding
                obligations of the Issuer enforceable against the Issuer in
                accordance with their terms, except that (A) such enforcement
                may be subject to bankruptcy, insolvency, reorganization,
                moratorium or other similar laws (whether statutory, regulatory
                or decisional) now or hereafter in effect relating to creditors'
                rights generally and (B) the remedy of specific performance and
                injunctive and other forms of equitable relief may be subject to
                certain equitable defenses and to the discretion of the court
                before which any proceeding therefor may be brought, whether a
                proceeding at law or in equity.

                        (v) NO VIOLATION. The consummation of the transactions
                contemplated by this Indenture 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,
                lapse of time or both) a default under the organizational
                documents of the Issuer, or any material indenture, agreement,
                mortgage, deed of trust or other instrument to which the Issuer
                is a party or by which it is bound, or result in the creation or
                imposition of any lien upon any of its material properties
                pursuant to the terms of any such indenture, agreement,
                mortgage, deed of trust or other instrument, other than this
                Indenture, nor violate any law or any order, rule or regulation
                applicable to the Issuer of any court or of any federal or state
                regulatory body, administrative agency or other governmental
                instrumentality having jurisdiction over the Issuer or any of
                its properties.

                        (vi) NO PROCEEDINGS. There are no proceedings,
                injunctions, writs, restraining orders or investigations to
                which the Issuer or any of its affiliates is a party pending,
                or, to the best of its knowledge, threatened, before any court,
                regulatory body, administrative agency or other tribunal or
                governmental instrumentality (A) asserting the invalidity of
                this Indenture, (B) seeking to prevent the issuance of any Notes
                or the consummation of any of the transactions contemplated by
                this Indenture or (C) seeking any determination or ruling that
                might materially and adversely affect the performance by the
                Issuer of its obligations under, or the validity or
                enforceability of this Indenture.

                        (vii) APPROVALS. All approvals, authorizations,
                consents, orders or other actions of any person, corporation or
                other organization, or of any court, governmental agency or body
                or official, required on the part of the Issuer in connection
                with the execution and delivery of this Indenture have been
                taken or obtained on or prior to the Date of Issuance.

                        (viii) PLACE OF BUSINESS. The Issuer's place of business
                and chief executive office is located in Wilmington, Delaware,
                and the Issuer has had no other chief executive office.

                        (ix) TAX AND ACCOUNTING TREATMENT. The Issuer intends to
                treat the transactions contemplated by the Student Loan Purchase
                Agreements as an absolute transfer rather than as a pledge of
                the Financed Eligible Loans from the Seller for federal income
                tax and financial accounting purposes and the Issuer (through
                the Eligible Lender Trustee) will be treated as the owner of the
                Financed Eligible Loans for all purposes. The Issuer further
                intends to treat the Notes as its indebtedness for federal
                income tax and financial accounting purposes.

                                       37
<PAGE>

                        (x) TAXES. The Issuer has filed (or caused to be filed)
                all federal, state, county, local and foreign income, franchise
                and other tax returns required to be filed by it through the
                date hereof, and has paid all taxes reflected as due thereon.
                There is no pending dispute with any taxing authority that, if
                determined adversely to the Issuer, would result in the
                assertion by any taxing authority of any material tax
                deficiency, and the Issuer has no knowledge of a proposed
                liability for any tax year to be imposed upon such entity's
                properties or assets for which there is not an adequate reserve
                reflected in such entity's current financial statements.

                        (xi) LEGAL NAME. The legal name of the Issuer is "Nelnet
                Student Loan Trust 2008-4" and has not changed since its
                inception. The Issuer has no trade names, fictitious names,
                assumed names or "dba's" under which it conducts its business
                and has made no filing in respect of any such name.

                        (xii) BUSINESS PURPOSE. The Issuer has acquired the
                Financed Eligible Loans conveyed to it under a Student Loan
                Purchase Agreement for a bona fide business purpose and has
                undertaken the transactions contemplated herein as principal
                rather than as an agent of any other Person. The Issuer has no
                subsidiaries, has adopted and operated consistently with all
                requirements for statutory trusts under the laws of the State
                with respect to its operations and has engaged in no other
                activities other than those specified in this Indenture and the
                Student Loan Purchase Agreements and in accordance with the
                transactions contemplated herein and therein.

                        (xiii) COMPLIANCE WITH LAWS. The Issuer is in compliance
                with all applicable laws and regulations with respect to the
                conduct of its business and has obtained and maintains all
                permits, licenses and other approvals as are necessary for the
                conduct of its operations.

                        (xiv) VALID BUSINESS REASONS; NO FRAUDULENT TRANSFERS.
                The transactions contemplated by this Indenture are in the
                ordinary course of the Issuer's business and the Issuer has
                valid business reasons for granting the Trust Estate pursuant to
                this Indenture. At the time of each such grant: (A) the Issuer
                granted the Trust Estate to the Trustee without any intent to
                hinder, delay or defraud any current or future creditor of the
                Issuer; (B) the Issuer was not insolvent and did not become
                insolvent as a result of any such grant; (C) the Issuer was not
                engaged and was not about to engage in any business or
                transaction for which any property remaining with such entity
                was an unreasonably small capital or for which the remaining
                assets of such entity are unreasonably small in relation to the
                business of such entity or the transaction; (D) the Issuer did
                not intend to incur, and did not believe or should not have
                reasonably believed, that it would incur, debts beyond its
                ability to pay as they become due; and (E) the consideration
                received by the Issuer for the grant of the Trust Estate was
                reasonably equivalent to the value of the related grant.

                                       38
<PAGE>

                        (xv) NO MANAGEMENT OF AFFAIRS OF SELLER. The Issuer is
                not and will not be involved in the day-to-day management of the
                Seller, the Administrator, the Depositor or any affiliate.

                        (xvi) NO TRANSFERS WITH SELLER OR AFFILIATES. Other than
                the acquisition of assets and the transfer of any Notes pursuant
                to this Indenture, the Issuer does not engage in and will not
                engage in any transactions with the Seller and affiliates,
                except as provided herein with respect to the Administration
                Agreement and the Master Servicing Agreement or the payment of
                distributions to the Depositor.

                        (xvii) ABILITY TO PERFORM. There has been no material
                impairment in the ability of the Issuer to perform its
                obligations under this Indenture.

                        (xviii) FINANCIAL CONDITION. No material adverse change
                has occurred in the Issuer's financial status since the date of
                its formation.

                        (xix) EVENT OF DEFAULT. No Event of Default has occurred
                and no event has occurred that, with the giving of notice, the
                passage of time, or both, would become an Event of Default.

                        (xx) ACQUISITION OF FINANCED ELIGIBLE LOANS LEGAL. The
                Issuer has complied with all applicable federal, state and local
                laws and regulations in connection with its acquisition of the
                Financed Eligible Loans from the Seller.

                        (xxi) NO MATERIAL MISSTATEMENTS OR OMISSIONS. No
                information, certificate of an officer, statement furnished in
                writing or report delivered to the Trustee, the Master Servicer,
                a Subservicer or any Registered Owner by the Issuer contains any
                untrue statement of a material fact or omits a material fact
                necessary to make such information, certificate, statement or
                report not misleading.

                        (xxii) NOT AN INVESTMENT COMPANY. The Issuer is not an
                "investment company" within the meaning of the Investment
                Company Act, or is exempt from all provisions of the Investment
                Company Act.

                (b) The Issuer will not:

                        (i) sell, transfer, exchange or otherwise dispose of any
                portion of the Trust Estate except as expressly permitted by
                this Indenture;

                        (ii) claim any credit on, or make any deduction from,
                the principal amount of any of the Notes by reason of the
                payment of any taxes levied or assessed upon any portion of the
                Trust Estate;

                                       39
<PAGE>

                        (iii) except as otherwise provided herein, dissolve or
                liquidate in whole or in part, except with the prior written
                consent of the Trustee, and to the extent Notes remain
                Outstanding, approval of the Registered Owners and a Rating
                Confirmation;

                        (iv) permit the validity or effectiveness of this
                Indenture, any Supplement or any grant hereunder to be impaired,
                or permit the lien of this Indenture to be amended,
                hypothecated, subordinated, terminated or discharged, or permit
                any Person to be released from any covenants or obligations
                under this Indenture, except as may be expressly permitted
                hereby;

                        (v) except as otherwise provided herein, permit any
                lien, charge, security interest, mortgage or other encumbrance
                (other than the lien of this Indenture) to be created on or
                extend to or otherwise arise upon or burden the Trust Estate or
                any part thereof or any interest therein or the proceeds
                thereof;

                        (vi) permit the lien of this Indenture not to constitute
                a valid first priority, perfected security interest in the Trust
                Estate;

                        (vii) incur or assume any indebtedness or guarantee any
                indebtedness of any Person whether secured by any Financed
                Eligible Loans under this Indenture or otherwise, except for
                such obligations as may be incurred by the Issuer in connection
                with the issuance of the Notes pursuant to this Indenture and
                unsecured trade payables in the ordinary course of its business;

                        (viii) operate such that it would be consolidated with
                the Depositor or any other affiliate and its separate existence
                disregarded in any federal or state proceeding;

                        (ix) act as agent of the Seller or, except as provided
                in its Student Loan Purchase Agreement, allow the Seller to act
                as its agent;

                        (x) allow the Seller or the Depositor or any other
                affiliate to pay its expenses, guarantee its obligations or
                advance funds to it for payment of expenses; or

                        (xi) consent to the appointment of a conservator or
                receiver or liquidator in any insolvency, readjustment of debt,
                marshalling of assets and liabilities or similar proceedings of
                or relating to the Issuer or of or relating to all or
                substantially all of its property, or a decree or order of a
                court or agency or supervisory authority having jurisdiction in
                the premises for the appointment of a conservator or receiver or
                liquidator in any insolvency, readjustment of debt, marshalling
                of assets and liabilities or similar proceedings, or for the
                winding-up or liquidation of its affairs, shall have been
                entered against the Issuer; or the Issuer shall not consent to
                the appointment of a receiver, conservator or liquidator in any
                insolvency, readjustment of debt, marshalling of assets and
                liabilities, voluntary liquidation or similar proceedings of or
                relating to the Issuer or of or relating to all or substantially
                all of its property; or admit in writing its inability to pay
                its debts generally as they become due, file a petition to take
                advantage of any applicable insolvency, bankruptcy or
                reorganization statute, make an assignment for the benefit of
                its creditors or voluntarily suspend payment of its obligations.

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<PAGE>

                (c) The Issuer makes the following representations and
        warranties as to the Trust Estate which is granted to the Trustee
        hereunder on such date, on which the Trustee relies in accepting the
        Trust Estate. Such representations and warranties shall survive the
        grant of the Trust Estate to the Trustee pursuant to this Indenture:

                        (i) FINANCED ELIGIBLE LOANS. Each Financed Eligible Loan
                acquired by the Issuer shall constitute an Eligible Loan and
                shall satisfy any representations and warranties made with
                respect thereto in an applicable Student Loan Purchase
                Agreement. Notwithstanding the definition of "Eligible Loans"
                herein, the Issuer covenants that no more than 20% of each
                purchase of Eligible Loans will be made up of Eligible Loans
                delinquent by more than 30 days.

                        (ii) GRANT. It is the intention of the Issuer that the
                transfer herein contemplated constitutes a grant of the Financed
                Eligible Loans to the Trustee.

                        (iii) ALL FILINGS MADE. All filings (including, without
                limitation, UCC filings) necessary in any jurisdiction to give
                the Trustee a first priority perfected ownership and security
                interest in the Trust Estate, including the Financed Eligible
                Loans, have been made no later than the Date of Issuance and
                copies of the file-stamped financing statements shall be
                delivered to the Trustee within five Business Days of receipt by
                the Issuer or its agent from the appropriate secretary of state.
                The Issuer has not caused, suffered or permitted any lien,
                pledges, offsets, defenses, claims, counterclaims, charges or
                security interest with respect to the Financed Eligible Loans
                (other than the security interest created in favor of the
                Trustee) to be created.

                        (iv) TRANSFER NOT SUBJECT TO BULK TRANSFER ACT. Each
                grant of the Financed Eligible Loans by the Issuer pursuant to
                this Indenture is not subject to the bulk transfer act or any
                similar statutory provisions in effect in any applicable
                jurisdiction.

                        (v) NO TRANSFER TAXES DUE. Each grant of the Financed
                Eligible Loans (including all payments due or to become due
                thereunder) by the Issuer pursuant to this Indenture is not
                subject to and will not result in any tax, fee or governmental
                charge payable by the Issuer or the Seller to any federal, state
                or local government.

        SECTION 4.13. ADDITIONAL COVENANTS. So long as any of the Notes are
Outstanding:

                (a) The Issuer shall not engage in any business or activity
        other than in connection with the transactions contemplated by the Basic
        Documents.

                (b) The Issuer shall not consolidate or merge with or into any
        other entity or convey or transfer its properties and assets
        substantially as an entirety to any entity except as otherwise provided
        herein.

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<PAGE>

                (c) The funds and other assets of the Issuer shall not be
        commingled with those of any other individual, corporation, estate,
        partnership, joint venture, association, joint stock company, trust,
        unincorporated organization or government, or any agency or political
        subdivision thereof.

                (d) The Issuer shall not be, become or hold itself out as being
        liable for the debts of any other party.

                (e) The Issuer shall not form, or cause to be formed, any
        subsidiaries.

                (f) The Issuer shall act solely in its own name and through its
        duly authorized officers or agents in the conduct of its business, and
        shall conduct its business so as not to mislead others as to the
        identity of the entity with which they are concerned.

                (g) The Issuer shall maintain its records and books of account
        and shall not commingle its records and books of account with the
        records and books of account of any other Person. The books of the
        Issuer may be kept (subject to applicable law) inside or outside the
        State at such place or places as may be designated from time to time by
        the provisions of the Trust Agreement.

                (h) All actions of the Issuer shall be taken by an Authorized
        Representative.

                (i) The Issuer shall not amend, alter, change or repeal any
        provision contained in this Section without (i) the prior written
        consent of the Trustee and (ii) a Rating Confirmation from each Rating
        Agency then rating any Notes Outstanding (a copy of which shall be
        provided to the Trustee) that such amendment, alteration, change or
        repeal will have no adverse effect on the rating assigned to the Notes.

                (j) The Issuer shall not amend its Certificate of Trust or its
        Trust Agreement without first obtaining the prior written consent of
        each Rating Agency.

                (k) All audited financial statements of the Issuer that are
        consolidated with those of any affiliate thereof will contain detailed
        notes clearly stating that (i) all of the Issuer's assets are owned by
        the Issuer, and (ii) the Issuer is a separate entity with creditors who
        have received ownership and/or security interests in the Issuer's
        assets.

                (l) The Issuer will strictly observe legal formalities in its
        dealings with the Seller, the Depositor or any affiliate thereof, and
        funds or other assets of the Issuer will not be commingled with those of
        the Seller, the Depositor or any other affiliate thereof. The Issuer
        shall not maintain joint bank accounts or other depository accounts to
        which the Seller, the Depositor or any other affiliate has independent
        access. None of the Issuer's funds will at any time be pooled with any
        funds of the Seller, the Depositor or any other affiliate.

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<PAGE>

                (m) The Issuer will maintain an arm's length relationship with
        the Seller (and any Affiliate). Any Person that renders or otherwise
        furnishes services to the Issuer will be compensated by the Issuer at
        market rates for such services it renders or otherwise furnishes to the
        Issuer except as otherwise provided in this Indenture. Except as
        contemplated in this Indenture, the Student Loan Purchase Agreements,
        the Master Servicing Agreement or a Subservicing Agreement, the Issuer
        will not hold itself out to be responsible for the debts of the Seller,
        the Depositor or the decisions or actions respecting the daily business
        and affairs of the Seller or the Depositor.

        SECTION 4.14. PROVIDING OF NOTICE. The Issuer, upon learning of any
failure on its part to observe or perform in any material respect any covenant,
representation or warranty of the Issuer set forth in this Indenture or the
Student Loan Purchase Agreements, or of any failure on the part of the Seller to
observe or perform in any material respect any covenant, representation or
warranty of the Seller set forth in its Student Loan Purchase Agreement, shall
promptly notify the Trustee, the Master Servicer, the appropriate Subservicer
and each Rating Agency of such failure.

        SECTION 4.15. CERTAIN REPORTS.

                (a) The Issuer will:

                        (i) file with the Trustee, within 15 days after the
                Issuer is required to file the same with the Commission, copies
                of the annual reports and of the information, documents and
                other reports (or copies of such portions of any of the
                foregoing as the Commission may from time to time by rules and
                regulations prescribe) which the Issuer may be required to file
                with the Commission pursuant to Section 13 or Section 15(d) of
                the Exchange Act;

                        (ii) file with the Trustee and the Commission, in
                accordance with rules and regulations prescribed from time to
                time by the Commission, such additional information, documents
                and reports with respect to compliance by the Issuer with the
                conditions and covenants of this Indenture as may be required
                from time to time by such rules and regulations; and

                        (iii) cause the Trustee to transmit by mail to the
                Registered Owners of Notes, within 30 days after the filing
                thereof with the Trustee, in the manner and to the extent
                provided in Section 313(c) of the Trust Indenture Act, such
                summaries of any information, documents and reports required to
                be filed by the Issuer pursuant to subsections (i) and (ii) of
                this subsection (a) as may be required by rules and regulations
                prescribed from time to time by the Commission.

                (b) The Trustee shall mail to each Registered Owner, within 60
        days after each December 31 beginning with the December 31 following the
        date of this Indenture, a brief report as of such December 31 that
        complies with Section 313(a) of the Trust Indenture Act if required by
        said section. The Trustee shall also comply with Section 313(b) of the
        Trust Indenture Act. A copy of each such report required pursuant to
        Section 313(a) or (b) of the Trust Indenture Act shall, at the time of
        such transaction to Registered Owners, be filed by the Trustee with the
        Commission and with each securities exchange, if any, upon which the
        Notes are listed, provided that the Issuer has previously notified the
        Trustee of such listing.

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<PAGE>

                (c) Not later than the Determination Date preceding each
        Quarterly Distribution Date, the Administrator will prepare and provide
        a certificate in the form of Exhibit D hereto (the "Administrator's
        Quarterly Distribution Date Certificate"), or containing such
        information as the Commission may from time to time by rules or
        regulations prescribe, to the Trustee. The Trustee shall provide a copy
        of any Administrator's Quarterly Distribution Date Certificate to any
        Noteholder who requests such in writing.

                (d) The Trustee may conclusively rely and accept such reports
        from the Issuer as fulfilling the requirements of this Section, with no
        further duty to know, determine or examine such reports or comply with
        the prescribed timing, rules and regulations of the Commission.

        SECTION 4.16. STATEMENT AS TO COMPLIANCE. The Issuer will deliver to the
Trustee, within 120 days after the end of each fiscal year, a brief certificate
from an Authorized Representative including (a) a current list of the Authorized
Representatives, and (b) a statement indicating whether or not to the knowledge
of the signers thereof the Issuer is in compliance with all conditions and
covenants under this Indenture and, in the event of any noncompliance,
specifying such noncompliance and the nature and status thereof. For purposes of
this Section, such compliance shall be determined without regard to any period
of grace or requirement of notice under this Indenture.

        SECTION 4.17. REPRESENTATIONS OF THE ISSUER REGARDING THE TRUSTEE'S
SECURITY INTEREST. The Issuer hereby represents and warrants for the benefit of
the Trustee and the Registered Owners as follows:

                (a) This Indenture creates a valid and continuing security
        interest (as defined in the applicable Uniform Commercial Code in effect
        in the States of Colorado, Delaware, Nebraska, and Utah) in the Financed
        Eligible Loans in favor of the Trustee, which security interest is prior
        to all other liens, charges, security interests, mortgages or other
        encumbrances, and is enforceable as such as against creditors of and
        purchasers from the Issuer.

                (b) Pursuant to the Higher Education Act, a security interest in
        student loans is perfected in the same manner as "accounts" within the
        meaning of the applicable UCC, which applicable UCCs are the UCC as in
        effect in the States of Delaware and Utah for the purposes of perfecting
        a security interest in the Financed Eligible Loans.

                (c) The Issuer (or the Eligible Lender Trustee on behalf of the
        Issuer) owns and has good and marketable title to the Financed Eligible
        Loans free and clear of any lien, charge, security interest, mortgage or
        other encumbrance, claim or encumbrance of any Person, other than those
        granted pursuant to this Indenture.

                (d) For sale of loan participations, swaps and other "payment
        intangibles" (within the meaning of the applicable UCC), the Issuer has
        received all consents and approvals required by the terms of the
        Financed Eligible Loans for the sale of the Financed Eligible Loans
        hereunder to the Trustee.

                (e) The Issuer has caused or will have caused, within ten days,
        the filing of all appropriate financing statements in the proper filing
        office in the appropriate jurisdictions under applicable law in order to
        perfect the security interest in the Financed Eligible Loans granted to
        the Trustee hereunder.

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<PAGE>

                (f) The Issuer has received a written acknowledgment from the
        Master Servicer and each Subservicer (as custodian for the Trustee) that
        the Master Servicer or such Subservicer is holding executed copies of
        the promissory notes and master promissory notes that constitute or
        evidence the Financed Eligible Loans for which it is acting as Master
        Servicer or Subservicer, and that the Master Servicer or such
        Subservicer is holding such solely on behalf and for the benefit of the
        Trustee.

                (g) Other than the security interest granted to the Trustee
        pursuant to this Indenture, the Issuer has not pledged, assigned, sold,
        granted a security interest in, or otherwise conveyed any of the
        Financed Eligible Loans. The Issuer has not authorized the filing of and
        is not aware of any financing statements against the Issuer that include
        a description of collateral covering the Financed Eligible Loans other
        than any financing statement relating to the security interest granted
        to the Trustee hereunder or that has been terminated. The Issuer is not
        aware of any judgment or tax lien filings against the Issuer.

        SECTION 4.18. FURTHER COVENANTS OF THE ISSUER REGARDING THE TRUSTEE'S
SECURITY INTEREST. The Issuer hereby covenants for the benefit of the Trustee
and the Registered Owners as follows:

                (a) The representations and warranties set forth in Section 4.17
        hereof shall survive the termination of this Indenture.

                (b) The Trustee shall not waive any of the representations and
        warranties set forth in Section 4.17 hereof.

                (c) The Issuer shall take all steps necessary, and shall cause
        the Master Servicer and each Subservicer, if any, to take all steps
        necessary and appropriate, to maintain the perfection and priority of
        the Trustee's security interest in the Financed Eligible Loans.

        SECTION 4.19. BORROWER INCENTIVE PROGRAMS. The Issuer presently offers
borrower incentive programs on the Financed Eligible Loans. If any such
incentive programs, or any other borrower incentive programs offered by the
Issuer in the future which are not required by the Higher Education Act, are in
effect for any Financed Eligible Loans on any Quarterly Distribution Date on
which the Parity Ratio is less than 100%, the Issuer shall either (i) contribute
funds to the Collection Fund in an amount equal to the principal or interest
that otherwise would have been paid on such Financed Eligible Loans in the
absence of the borrower incentive programs since the preceding Quarterly
Distribution Date or (ii) notify the Master Servicer to instruct the
Subservicers to notify the borrowers that the borrower incentive programs for
those Financed Eligible Loans have been terminated. If the Master Servicer or a
Subservicer is notified to provide notice of the termination of the borrower
incentive programs for the Financed Eligible Loans being serviced by such Master
Servicer or the Subservicer, such Master Servicer or Subservicer may choose to
contribute funds to the Collection Fund in an amount equal to the principal or
interest that otherwise would have been paid on such Financed Eligible Loans in
the absence of the borrower incentive programs on the Financed Eligible Loans
being serviced by such Master Servicer or Subservicer in lieu of providing
notice of the termination of the borrower incentive programs for those Financed
Eligible Loans. The Issuer shall notify the Rating Agencies if the Issuer, the
Master Servicer or a Subservicer contributes any additional amounts pursuant to
this Section or if any of the borrower incentive programs are terminated.

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        SECTION 4.20. STATEMENTS TO NOTEHOLDERS. Two days preceding a Quarterly
Distribution Date, the Issuer shall cause the Administrator to provide to the
Trustee (with a copy to the Rating Agencies) a report setting forth the
information described in Item 1122 of Regulation AB promulgated by the
Securities and Exchange Commission substantially in the form of Exhibit E
hereto, with such additional information as the Administrator shall determine;
the Trustee shall forward such report on or before the Quarterly Distribution
Date to the Registered Owners.

                                   ARTICLE V

                                      FUNDS

        SECTION 5.01. CREATION AND CONTINUATION OF FUNDS AND ACCOUNTS. There are
hereby created and established the following Funds to be held and maintained by
the Trustee for the benefit of the Registered Owners:

                (a) Acquisition Fund, including a Prefunding Account therein;

                (b) Capitalized Interest Fund;

                (c) Collection Fund;

                (d) Department Rebate Fund; and

                (e) Reserve Fund

        The Trustee is hereby authorized for the purpose of facilitating the
administration of the Trust Estate and for the administration of any Notes
issued hereunder to create further Accounts or Subaccounts in any of the various
Funds and Accounts established hereunder which are deemed necessary or
desirable.

        SECTION 5.02. ACQUISITION FUND. There shall be deposited into the
Acquisition Fund $1,329,910,063, consisting of moneys from proceeds of the Notes
in an amount equal to $1,317,679,687 and $12,230,376 of the Depositor's funds.
There shall be deposited into the Prefunding Account of the Acquisition Fund
from the amounts deposited into the Acquisition Fund an amount equal to
$383,851,152. Financed Eligible Loans shall be held by the Trustee or its agent
or bailee (including the Master Servicer or a Subservicer) and shall be pledged
to the Trust Estate and held as a part of the Acquisition Fund.

                                       46
<PAGE>

        Moneys on deposit in the Acquisition Fund, including the Prefunding
Account of the Acquisition Fund, shall be used upon receipt by the Trustee of an
Eligible Loan Acquisition Certificate, to acquire Eligible Loans at a price not
in excess of 100% of the outstanding principal balance of such Eligible Loans,
plus accrued interest. Any such Eligible Loan Acquisition Certificate shall
state that such proposed use of moneys in the Acquisition Fund is in compliance
with the provisions of this Indenture.

        In addition, on each Monthly Servicing Payment Date, to the extent there
are insufficient Available Funds in the Collection Fund to make one or more of
the transfers required by Section 5.04(b) (other than transfers to repurchase
student loans from the Master Servicer, and Subservicer or any Guaranty Agency
as described in clause (a)(i) of the definition of Available Funds), the
Administrator shall instruct the Trustee in writing to withdraw from the
Prefunding Account on such Monthly Servicing Payment Date an amount of money
equal to such deficiency and to deposit such amount in the Collection Fund to
the extent moneys are not available to make such transfers from the Capitalized
Interest Fund pursuant to Section 5.03 hereof. Notwithstanding the foregoing, if
any funds or moneys remain in the Acquisition Fund (including the Prefunding
Account) on July 25, 2008, or on such earlier date as the Trustee may be
instructed by Issuer Order, then the Trustee shall, without direction from or
notice to the Issuer, transfer all such remaining moneys or funds to the
Collection Fund on such date.

        While the Issuer will be the beneficial owner of the Financed Eligible
Loans, it is understood and agreed that the Eligible Lender Trustee will be the
legal owner thereof and the Trustee will have a security interest in the
Financed Eligible Loans for and on behalf of the Registered Owners. In the case
of a single Financed Eligible Loan evidenced by a separate note, each such note
will be held in the name of the Trustee for the account of the Issuer, for the
benefit of the Registered Owners. In the case of a Financed Eligible Loan
evidenced by a Master Promissory Note, the Issuer shall cause the holder of the
original Master Promissory Note to indicate by book entry on its books and
records that the Issuer is the beneficial owner of the Financed Eligible Loan
and that the Eligible Lender Trustee is the legal owner thereof and the Trustee
has a security interest in the Financed Eligible Loan for the benefit of the
Registered Owners.

        Except (i) as provided in Sections 5.08, 10.03 and 10.04 hereof, (ii)
for consolidation or serialization purposes, (iii) for transfers to a Guaranty
Agency, (iv) for transfers to the Master Servicer or a Subservicer pursuant to
its repurchase obligation under the applicable Master Servicing Agreement or
Subservicing Agreement, (v) for transfers to a Seller pursuant to its repurchase
obligation under its Student Loan Purchase Agreement, or (vi) as set forth in
the following sentence, Financed Eligible Loans shall not be sold, transferred
or otherwise disposed of by the Issuer while any of the Notes are Outstanding.
If necessary for administrative purposes, the Issuer may sell Financed Eligible
Loans through the Eligible Lender Trustee free from the lien of this Indenture,
so long as the sale price for any Financed Eligible Loan is not less than the
Purchase Amount of such Financed Eligible Loan and the collective aggregate
principal balance of all such sales does not exceed $10,000,000, and the Issuer
hereby certifies the same to the Trustee, upon which the Trustee may
conclusively rely. The Issuer hereby certifies, upon which the Trustee may
conclusively rely, that any Financed Eligible Loan sold pursuant to this
Indenture shall not be sold for a price less than the Purchase Amount of such
Financed Eligible Loan. The Issuer shall provide notice to Moody's if the
principal amount of Financed Eligible Loans sold pursuant to this Indenture
exceeds 10% of the Initial Pool Balance.

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<PAGE>

        SECTION 5.03. CAPITALIZED INTEREST FUND. There shall be deposited into
the Capitalized Interest Fund moneys from proceeds of the Notes in an amount
equal to $29,000,000.

        On each Monthly Servicing Payment Date or Quarterly Distribution Date,
to the extent there are insufficient Available Funds in the Collection Fund to
make one or more of the transfers required by Sections 5.04(b) (other than
transfers to repurchase student loans from the Master Servicer, any Subservicer
or any Guaranty Agency as described in clause (a)(i) and (ii) of the definition
of Available Funds) and 5.04(c)(i) through (iv) hereof, then the Administrator
shall instruct the Trustee in writing to withdraw from the Capitalized Interest
Fund on such Monthly Servicing Payment Date or Quarterly Distribution Date, an
amount equal to such deficiency and to deposit such amount in the Collection
Fund. On the January 2009 Quarterly Distribution Date, the Administrator shall
instruct the Trustee to transfer any amounts in excess of $20,000,000 on deposit
in the Capitalized Interest Fund to the Collection Fund. On the July 2009
Quarterly Distribution Date, the Administrator shall instruct the Trustee to
transfer any amounts in excess of $9,000,000 on deposit in the Capitalized
Interest Fund to the Collection Fund. On the January 2010 Quarterly Distribution
Date, the Administrator shall instruct the Trustee to transfer any amounts in
excess of $2,000,000 on deposit in the Capitalized Interest Fund to the
Collection Fund. On the July 2010 Quarterly Distribution Date, the Administrator
shall instruct the Trustee to transfer all remaining amounts on deposit in the
Capitalized Interest Fund to the Collection Fund.

        SECTION 5.04. COLLECTION FUND.

                (a) DEPOSITS TO COLLECTION FUND. There shall be deposited to the
        Collection Fund (i) moneys from proceeds of the Notes in an amount equal
        to $0, (ii) all Available Funds, and all other moneys and investments
        derived from assets on deposit in and transfers from the Prefunding
        Account of the Acquisition Fund (as described in Section 5.02 hereof),
        the Capitalized Interest Fund (as described in Section 5.03 hereof), the
        Reserve Fund (as described in Section 5.05 hereof) and the Department
        Rebate Fund (as described in Section 5.06 hereof), (iii) all
        Counterparty Payments, (iv) amounts deposited pursuant to Sections 10.03
        and 10.04 hereof and (v) any other amounts deposited thereto upon
        receipt of deposit instructions from the Issuer or the Administrator as
        applicable. Moneys on deposit in the Collection Fund shall be used to
        make the payments described in this Section. The Trustee may
        conclusively rely on all written instructions of the Issuer or
        Administrator described in this Indenture with no further duty to
        examine or determine the information contained in any Administrator's
        Quarterly Distribution Date Certificate, Monthly Servicing Payment Date
        Certificate, or Issuer Order.

                (b) PAYMENTS ON DATES OTHER THAN QUARTERLY DISTRIBUTION DATES.
        The Administrator shall instruct the Trustee in writing no later than
        the Determination Date for the Monthly Servicing Payment Date (based on
        the information contained in a certificate of the Administrator (in the
        form set forth as Exhibit C hereto) and the related Servicer's Report,

                                       48
<PAGE>

        if applicable) to distribute to the Master Servicer, on such Monthly
        Servicing Payment Date, from and to the extent of the Available Funds on
        deposit in the Collection Fund (including any amounts transferred from
        the Prefunding Account of the Acquisition Fund pursuant to Section 5.02
        hereof, the Capitalized Interest Fund pursuant to Section 5.03 hereof
        and the Reserve Fund pursuant to Section 5.05(b) and (c) hereof), the
        Servicing Fees due with respect to the preceding calendar month, and the
        Trustee shall comply with such instructions. In accordance with Section
        5.06 hereof, the Administrator shall instruct the Trustee in writing on
        a monthly basis not later than the 10th calendar day of each month to
        withdraw from the Collection Fund and deposit to the Department Rebate
        Fund the amount necessary to bring the balance of the Department Rebate
        Fund to the expected Department Rebate Interest Amount for such date,
        and the Trustee shall comply with such instructions. Upon written
        direction from the Administrator to the Trustee, moneys in the
        Collection Fund shall be used on any date to pay, when due, fees and
        expenses insofar as the same relate to Financed Eligible Loans and other
        fees and expenses with respect to the Trust Estate the payment of which
        is not otherwise provided for in subsection (c) of this Section,
        including, without limitation, amounts described in clause (a)(i) and
        (ii) of the definition of Available Funds.

                (c) PAYMENTS ON QUARTERLY DISTRIBUTION DATES. The Administrator
        shall instruct the Trustee in writing no later than the Determination
        Date preceding each Quarterly Distribution Date (based on the
        information contained in a certificate of the Administrator (in the form
        set forth as Exhibit D hereto) and the related Servicer's Report, if
        applicable) to make the following deposits and distributions from the
        Available Funds in the Collection Fund received during the immediately
        preceding Collection Period (including any amounts transferred from the
        Prefunding Account of the Acquisition Fund pursuant to Section 5.02
        hereof, the Capitalized Interest Fund pursuant to Section 5.03 hereof
        and the Reserve Fund pursuant to Section 5.05(b) and (c) hereof) to the
        Persons or to the account specified below on such Quarterly Distribution
        Date, in the following order of priority, and the Trustee shall comply
        with such instructions, provided, however, that if the Available Funds
        received during the immediately preceding Collection Period are not
        sufficient to make the payments or deposits required pursuant to clauses
        (i) through (iv) of this subsection (c), then, after any required
        transfers from the Capitalized Interest Fund and the Reserve Fund, any
        other Available Funds on deposit in the Collection Fund, which the
        Administrator would have deemed Available Funds for the current
        Collection Period, may be used to make the payments or deposits required
        pursuant to clauses (i) through (iv) of this subsection (c):

                        (i) to pay to the Master Servicer, the Trustee and the
                Delaware Trustee, pro rata, based on amounts owed to each such
                party, without preference or priority of any kind, the Servicing
                Fee (to the extent remaining unpaid following the Monthly
                Servicing Payment Date), the Trustee Fee and the Delaware
                Trustee Fee, respectively, due on such Quarterly Distribution
                Date, in each case, together with such fees remaining unpaid
                from prior Quarterly Distribution Dates (and, in the case of the
                Servicing Fees, prior Monthly Servicing Payment Dates);

                                       49
<PAGE>

                        (ii) to pay to the Administrator, the Administration Fee
                due on such Quarterly Distribution Date and all unpaid
                Administration Fees from prior Quarterly Distribution Dates;

                        (iii) (A) to pay to the Class A Noteholders of each
                Class of the Class A Notes the portion of the Class A
                Noteholders' Interest Distribution Amount payable to such Class
                on such Quarterly Distribution Date and (B) to pay to the
                Counterparty, any Issuer Derivative Payments owed to such
                Counterparty on such Quarterly Distribution Date (excluding
                Termination Payments other than Priority Termination Payments),
                pro rata, based on amounts owed to each such party, without
                preference or priority of any kind;

                        (iv) Unless the Subordinate Notes Interest Trigger has
                occurred and is continuing on such Quarterly Distribution Date,
                to pay to the Class B Noteholders, the Class B Noteholders'
                Interest Distribution Amount payable on such Quarterly
                Distribution Date;

                        (v) to the Depositor, an amount equal to the unpaid
                interest accrued on the Financed Eligible Loans subsequent to
                the Cutoff Date but prior to the Date of Issuance, until such
                amount has been paid in full;

                        (vi) to the applicable Noteholders, the Principal
                Distribution Amount in the following order:

                                (A) to pay to the Class A-1 Noteholders until
                        the Class A-1 Notes have been paid in full;

                                (B) to pay to the Class A-2 Noteholders until
                        the Class A-2 Notes have been paid in full;

                                (C) to pay to the Class A-3 Noteholders until
                        the Class A-3 Notes have been paid in full;

                                (D) to pay to the Class A-4 Noteholders until
                        the Class A-4 Notes have been paid in full; and

                                (E) to pay to the Class B Noteholders until the
                        Class B Notes have been paid in full;

                        (vii) to deposit to the Reserve Fund, the amount, if
                any, necessary to reinstate the balance of the Reserve Fund up
                to the Specified Reserve Fund Balance;

                        (viii) to pay to the Master Servicer, the aggregate
                unpaid amount of any Carryover Servicing Fees, if any;

                        (ix) to the Class B Noteholders in the following order:

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                                (A) it the Subordinate Notes Interest Trigger
                        has occurred and is continuing, to pay any Class B
                        Noteholders' Interest Distribution Amount payable on
                        such Quarterly Distribution Date and not paid pursuant
                        to clause (iv) above; and

                                (B) after the Class A Notes have been paid in
                        full, to pay the Class B Notes Carry-over Amount payable
                        on such Quarterly Distribution Date;

                                (x) to pay to the Counterparties, pro rata,
                        without preference or priority of any kind, any accrued
                        and unpaid Termination Payments due to each such
                        Counterparty under the applicable Derivative Product;

                        (xi) in the event the Financed Eligible Loans are not
                sold pursuant to Sections 10.03 or 10.04 hereof, to pay as an
                accelerated payment of principal balance of the Notes then
                Outstanding, to the Noteholders in the same order and priority
                as is set forth in Sections 5.04(c)(vi)(A) through (E) hereof
                until the principal amount of the Notes is paid in full; and

                        (xii) to release to the Issuer any remaining funds.

               Amounts properly distributed pursuant to clause (v) or (xii) of
        this subsection (c) shall be deemed released from the Trust Estate and
        the security interest therein granted to the Trustee, and the Depositor
        shall in no event thereafter be required to refund any such distributed
        amounts.

               The Administrator shall, or shall direct the Trustee to, notify
        the Rating Agencies, by forwarding a copy of Exhibit D hereto, if the
        Available Funds received during the immediately preceding Collection
        Period are not sufficient to make the payments or deposits required
        pursuant to clauses (i) through (iv) of this subsection (c), after any
        required transfers from the Capitalized Interest Fund and the Reserve
        Fund, and such payments or deposits were made with other Available Funds
        on deposit in the Collection Fund from the current Collection Period.

               Subject to the provisions of Sections 7.05 and 7.07 hereof, the
        Issuer hereby certifies that the amounts paid to the Trustee and the
        Delaware Trustee (but not the Master Servicer) pursuant to clause (i)
        above and the Administration Fee pursuant to clause (ii) above, shall
        not in any one Fiscal Year exceed the amount or percentage designated
        therefor in the cash flows provided to each Rating Agency on the Date of
        Issuance, unless the Issuer, after furnishing each Rating Agency with
        revised cash flows, shall have received a Rating Confirmation.

                (d) OPTIONAL REDEMPTION FROM SALE OF FINANCED ELIGIBLE LOANS.
        The Notes shall be subject to redemption from the proceeds of a sale of
        Financed Eligible Loans in accordance with Section 10.03 or 10.04 hereof
        on any Quarterly Distribution Date, at a redemption price equal to the
        Outstanding Amount thereof, plus accrued interest, if any, and, with
        respect to the Class B Notes, any Class B Notes Carry-over Amounts (and
        any accrued interest thereon).

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                (e) CLASS B NOTES CARRY-OVER AMOUNT. If any Class B Notes'
        Interest Distribution Amount is not paid on a Quarterly Distribution
        Date due to the occurrence and continuation of the Subordinate Notes
        Interest Trigger, the Trustee shall determine the Class B Notes
        Carry-over Amount with respect to the Class B Notes for such Interest
        Accrual Period. Any Class B Notes Carry-over Amount shall bear interest
        calculated at a rate equal to the then applicable Class B Rate until
        such Class B Notes Carry-over Amount is paid in full or is cancelled.
        Any payment in respect of Class B Notes Carry-over Amount shall be
        applied, first, to any accrued interest payable thereon and, second, in
        reduction of such Class B Notes Carry-over Amount. For purposes of this
        Indenture, any reference to "principal" or "interest" herein shall not
        include within the meaning of such words Class B Notes Carry-over Amount
        or any interest accrued on any such Class B Notes Carry-over Amount.
        Such Class B Notes Carry-over Amount shall be separately calculated for
        each Class B Note by the Trustee during such Interest Accrual Period in
        sufficient time for the Trustee to give notice to each Registered Owner
        of such Class B Notes Carry-over Amount as required in the next
        succeeding sentence. For each Quarterly Distribution Date with respect
        to which Class B Notes Carry-over Amount is outstanding, the Trustee
        shall give written notice to each Registered Owner and the Issuer of the
        Class B Notes Carry-over Amount applicable to each Registered Owner's
        Class B Note, which written notice may accompany the payment of interest
        made to each such Registered Owner on such Quarterly Distribution Date
        or otherwise shall be mailed on such Quarterly Distribution Date by
        first-class mail, postage prepaid, or by electronic means to each such
        Registered Owner at such Registered Owner's address as it appears on the
        registration records maintained by the Trustee. In addition to such
        Class B Notes Carry-over Amount, such notice shall state, that (a) the
        Class B Notes Carry-over Amount (and interest accrued thereon calculated
        at a rate equal to the then current Class B Rate) shall be paid by the
        Trustee on the Class B Notes on the earliest of (i) the date of
        redemption of the Class B Notes or (ii) the first occurring Quarterly
        Distribution Date if and to the extent that moneys are available
        pursuant to the terms of subsection (c)(ix) of this Section in an amount
        sufficient to pay all or a portion of such Class B Notes Carry-over
        Amount (and interest accrued thereon) and (b) interest shall accrue on
        the Class B Notes Carry-over Amount at a rate equal to then current
        Class B Rate until such Class B Notes Carry-over Amount is paid in full
        or is cancelled.

               The Class B Notes Carry-over Amount (and interest accrued
        thereon) for Class B Notes shall be paid by the Trustee on Outstanding
        Class B Notes on the earliest of (a) the date of redemption of the Class
        B Notes or (b) the first occurring Quarterly Distribution Date if and to
        the extent that moneys are available pursuant to the terms of subsection
        (c)(ix) of this Section in an amount sufficient to pay all or a portion
        of such Class B Notes Carry-over Amount (and interest accrued thereon).
        Any Class B Notes Carry-over Amount (and any interest accrued thereon)
        which is not paid on the Quarterly Distribution Date on which the
        Outstanding Amount of the Class B Notes is reduced to zero shall be
        cancelled and shall not be paid on any succeeding Quarterly Distribution
        Date. To the extent that any portion of the Class B Notes Carry-over
        Amount (and any interest accrued thereon) remains unpaid after payment
        of a portion thereof, such unpaid portion shall be paid in whole or in
        part as required hereunder until fully paid by the Trustee on the
        earliest of (a) the date of redemption of the Class B Notes or (b) the
        next occurring Quarterly Distribution Date or Dates, as necessary, if
        and to the extent that moneys are available pursuant to the terms of
        subsection (c)(ix) of this Section in an amount sufficient to pay all or
        a portion of such remaining Class B Notes Carry-over Amount (and
        interest accrued thereon). On any Quarterly Distribution Date on which
        the Trustee pays only a portion of the Class B Notes Carry-over Amount
        (and any interest accrued thereon) on Class B Notes, the Trustee shall
        give written notice in the manner set forth in the immediately preceding
        paragraph to the Registered Owner of such Class B Note receiving such
        partial payment of the Class B Notes Carry-over Amount remaining unpaid
        on such Class B Note.

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<PAGE>

               The Quarterly Distribution Date or other date on which such Class
        B Notes Carry-over Amount (or any interest accrued thereon) shall be
        paid as determined and directed by Issuer, or by the Administrator on
        behalf of the Issuer, in accordance with the provisions of the
        immediately preceding paragraphs, and the Trustee shall make payment of
        the Class B Notes Carry-over Amount (and any interest accrued thereon)
        in the same manner as, and from the same Fund and Account from which, it
        pays interest on the Class B Notes. Any payment of Class B Notes
        Carry-over Amounts (and interest accrued thereon) shall reduce the
        amount of Class B Notes Carry-over Amount.

        SECTION 5.05. RESERVE FUND.

                (a) On the Date of Issuance, the Trustee shall deposit
        $3,320,313 into the Reserve Fund. Thereafter, the Trustee shall transfer
        to the Reserve Fund from the Collection Fund all amounts designated for
        transfer thereto pursuant to Section 5.04(c)(vii) hereof.

                (b) On each Monthly Servicing Payment Date or Quarterly
        Distribution Date, to the extent there are insufficient Available Funds
        in the Collection Fund to make one or more of the transfers required by
        Sections 5.04(b) (other than transfers to repurchase student loans from
        the Master Servicer, any Subservicer or any Guaranty Agency as described
        in clause (a)(i) of the definition of Available Funds) and 5.04(c)(i)
        through (c)(iv) hereof, then the Administrator shall instruct the
        Trustee in writing to withdraw from the Reserve Fund on such Monthly
        Servicing Payment Date or Quarterly Distribution Date, as the case may
        be, an amount equal to such deficiency and to deposit such amount in the
        Collection Fund to the extent moneys are not available to make such
        transfers from the Capitalized Interest Fund pursuant to Section 5.03
        hereof or the Prefunding Account of the Acquisition Fund pursuant to
        Section 5.02 hereof. Additionally, if on the Note Final Maturity Date
        for a Class of Notes, and after giving effect to the distribution of the
        Available Funds on such Note Final Maturity Date, the principal amount
        of such Class of Notes will not be reduced to zero, the Administrator
        shall instruct the Trustee in writing to withdraw from the Reserve Fund
        on such Note Final Maturity Date an amount equal to the amount needed to
        reduce the principal amount of such Class of Notes to zero and to
        deposit such amount in the Collection Fund for application to payment of
        the Outstanding Amount of such Class of Notes.

                (c) After giving effect to subsection (b) of this Section, if
        the amount on deposit in the Reserve Fund on any Quarterly Distribution
        Date is greater than the Specified Reserve Fund Balance for such
        Quarterly Distribution Date, the Administrator shall instruct the
        Trustee in writing to withdraw from the Reserve Fund on such Quarterly
        Distribution Date an amount equal to such excess and to deposit such
        amount in the Collection Fund.

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<PAGE>

                (d) On the final Quarterly Distribution Date upon termination of
        the trust and following the payment in full of the Outstanding Amount of
        the Notes and of all other amounts (other than unpaid Issuer Derivative
        Payments and Carryover Servicing Fees) owing or to be distributed
        hereunder to Noteholders, the Trustee, the Master Servicer, the
        Administrator, the Delaware Trustee or the Counterparties (excluding
        Termination Payments other than Priority Termination Payments), to the
        extent that Available Funds on such date are insufficient to make the
        following payments, amounts remaining in the Reserve Fund shall be used
        first to pay any unpaid Issuer Derivative Payments and second to pay any
        Carryover Servicing Fees. Any amount remaining on deposit in the Reserve
        Fund after such payments have been made shall be distributed to the
        Depositor. The Depositor shall in no event be required to refund any
        amounts properly distributed pursuant to this subsection (d).

                (e) Anything in this Section to the contrary notwithstanding, if
        the market value of securities and cash in the Reserve Fund is on any
        Quarterly Distribution Date sufficient to pay the remaining principal
        amount of and interest accrued on the Notes, and to pay any unpaid
        Issuer Derivative Payments and Carryover Servicing Fees, such amount
        will be so applied on such Quarterly Distribution Date and the
        Administrator shall instruct the Trustee in writing to make such
        payments.

        SECTION 5.06. DEPARTMENT REBATE FUND. On or before the 10th calendar day
of each month (or, if such date is not a Business Day, the next Business Day),
the Administrator shall instruct the Trustee to deposit into the Department
Rebate Fund from the Collection Fund pursuant to Section 5.04(b) hereof the
amount necessary to bring the balance of the Department Rebate Fund to the
expected Department Rebate Interest Amount for such date. Upon written
instructions from the Administrator to the Trustee, the Trustee shall (i) pay to
the Department an amount equal to the Department Rebate Interest Amount due on
each Department Rebate Payment Date, FIRST, from amounts on deposit in the
Department Rebate Fund and, second, from the Collection Fund pursuant to Section
5.04(b) hereof or (ii) if the Department has deducted the Department Rebate
Interest Amount from Interest Subsidy Payments or Special Allowance Payments due
to the Issuer, transfer the amounts on deposit in the Department Rebate Fund to
the Collection Fund.

        SECTION 5.07. INVESTMENT OF FUNDS HELD BY TRUSTEE. The Trustee is hereby
directed to enter into the Investment Agreement. In addition, the Trustee shall
invest money held for the credit of any Fund or Account or Subaccount held by
the Trustee hereunder as directed in writing (or orally, confirmed in writing)
by an Authorized Representative, to the fullest extent practicable and
reasonable, in Investment Securities which shall mature or be redeemed at the
option of the holder prior to the respective dates when the money held for the
credit of such Fund or Account will be required for the purposes intended. In
the absence of any such direction and to the extent practicable, the Trustee
shall invest amounts held hereunder in those Investment Securities described in
clause (k) of the definition of the Investment Securities. All such investments
shall be held by (or by any custodian on behalf of) the Trustee for the benefit

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<PAGE>

of the Issuer; provided that on the Business Day preceding each Quarterly
Distribution Date all interest and other investment income collected (net of
losses and investment expenses) on funds on deposit therein shall be deposited
into the Collection Fund and shall be deemed to constitute a portion of the
Available Funds. The Trustee and the Issuer hereby agree that unless an Event of
Default shall have occurred hereunder, the Issuer acting by and through an
Authorized Representative shall be entitled to, and shall, provide written
direction or oral direction confirmed in writing to the Trustee with respect to
any discretionary acts required or permitted of the Trustee under any Investment
Securities and the Trustee shall not take such discretionary acts without such
written direction.

        The Investment Securities purchased shall be held by the Trustee and
shall be deemed at all times to be part of such Fund or Account or Subaccounts
or combination thereof, and the Trustee shall inform the Issuer of the details
of all such investments. Upon direction in writing (or orally, confirmed in
writing) from an Authorized Representative, the Trustee shall use its best
efforts to sell at the best price obtainable, or present for redemption, any
Investment Securities purchased by it as an investment whenever it shall be
necessary to provide money to meet any payment from the applicable Fund. The
Trustee shall advise the Issuer in writing, on or before the fifteenth day of
each calendar month (or such later date as reasonably consented to by the
Issuer), of all investments held for the credit of each Fund in its custody
under the provisions of this Indenture as of the end of the preceding month and
the value thereof, and shall list any investments which were sold or liquidated
for less than the par value thereof, plus accrued but unpaid interest at the
time thereof.

        Money in any Fund constituting a part of the Trust Estate may be pooled
for the purpose of making investments and may be used to pay accrued interest on
Investment Securities purchased. The Trustee and its affiliates may act as
principal or agent in the acquisition or disposition of any Investment
Securities.

        Notwithstanding the foregoing, the Trustee shall not be responsible or
liable for any losses on investments made by it hereunder or for keeping all
Funds held by it, fully invested at all times, its only responsibility being to
comply with the investment instructions of the Issuer or its designee in a
non-negligent manner.

        The Issuer acknowledges that to the extent the regulations of the
Comptroller of the Currency or other applicable regulatory agency grant the
Issuer the right to receive brokerage confirmations of security transactions,
the Issuer waives receipt of such confirmations.

        SECTION 5.08. RELEASE.

                (a) The Trustee shall, upon Issuer Order and subject to the
        provisions of this Indenture, take all actions reasonably necessary to
        effect the release of any Financed Eligible Loans from the lien of this
        Indenture to the extent the terms hereof permit the sale, disposition or
        transfer of such Financed Eligible Loans.

                (b) Subject to the payment of its fees and expenses pursuant to
        Sections 7.05 and 7.07 hereof, the Trustee may, and when required by the
        provisions of this Indenture shall, execute instruments to release
        property from the lien of this Indenture, or convey the Trustee's
        interest in the same, in a manner and under circumstances that are not
        inconsistent with the provisions of this Indenture. No party relying
        upon an instrument executed by the Trustee as provided in this Article
        shall be bound to ascertain the Trustee's authority, inquire into the
        satisfaction of any conditions precedent or see to the application of
        any moneys.

                                       55
<PAGE>

                (c) The Trustee shall, at such time as there are no Notes
        Outstanding and all sums due the Trustee pursuant to Sections 7.05 and
        7.07 hereof and all amounts payable to the Master Servicer, each
        Subservicer, the Administrator, the Delaware Trustee and the
        Counterparties have been paid, release any remaining portion of the
        Trust Estate that secured the Notes from the lien of this Indenture and
        release to the Issuer or any other Person entitled thereto any funds
        then on deposit in the Funds and Accounts. The Trustee shall release
        property from the lien of this Indenture pursuant to this subsection (c)
        only upon receipt of an Issuer Order, an Opinion of Counsel and (if
        required by the Trust Indenture Act) Independent Certificates in
        accordance with Sections 314(c) and 314(d)(1) of the Trust Indenture
        Act.

                (d) Subject to the provisions of this Indenture, the Trustee
        shall release property from the lien of this Indenture only upon receipt
        of an Issuer Order, an Opinion of Counsel and Independent Certificates
        in accordance with Sections 314(c) and 314(d)(1) of the Trust Indenture
        Act or an Opinion of Counsel in lieu of such Independent Certificates to
        the effect that the Trust Indenture Act does not require any such
        Independent Certificates.

                (e) Each Registered Owner, by the acceptance of a Note,
        acknowledges that from time to time the Trustee shall release the lien
        of this Indenture on any Financed Eligible Loan to be sold or
        transferred pursuant to Section 5.02 hereof, and each Registered Owner,
        by the acceptance of a Note, consents to any such release.

                                   ARTICLE VI

                              DEFAULTS AND REMEDIES

        SECTION 6.01. EVENTS OF DEFAULT DEFINED. For the purpose of this
Indenture, the following events are hereby defined as, and are declared to be,
"Events of Default":

                (a) default in the due and punctual payment of any interest on
        any Note when the same becomes due and payable, and such default shall
        continue for a period of five (5) days; provided, however, that a
        default in the due and punctual payment of any interest on any Class B
        Note shall not be an Event of Default if any Class A Notes are
        Outstanding, and provided further, that a failure to pay any Class B
        Notes Carry-Over Amount shall not be an Event of Default;

                (b) default in the due and punctual payment of the principal of
        any Note when the same becomes due and payable on the related Note Final
        Maturity Date; provided, however, that a default in the due and punctual
        payment of principal on any Class B Note shall not be an Event of
        Default if any Class A Notes are Outstanding;

                                       56
<PAGE>

                (c) default in the performance or observance of any other of the
        covenants, agreements or conditions on the part of the Issuer to be
        kept, observed and performed contained in this Indenture or in the
        Notes, and continuation of such default for a period of 90 days after
        written notice thereof by the Trustee to the Issuer; and

                (d) the occurrence of an Event of Bankruptcy.

        Any notice herein provided to be given to the Issuer with respect to any
default shall be deemed sufficiently given if sent by registered mail with
postage prepaid to the Person to be notified, addressed to such Person at the
post office address as shown in Section 9.01 hereof or such other address as may
hereafter be given as the principal office of the Issuer in writing to the
Trustee by an Authorized Representative. The Trustee may give any such notice in
its discretion and shall give such notice if requested to do so in writing by
the Registered Owners of at least 51% of the collective aggregate principal
amount of the Highest Priority Obligations at the time Outstanding.

        SECTION 6.02. REMEDY ON DEFAULT; POSSESSION OF TRUST ESTATE. Subject to
Sections 6.08, 7.05 and 7.07 hereof, upon the happening and continuance of any
Event of Default, the Trustee or by its attorneys or agents may enter into and
upon and take possession of such portion of the Trust Estate as shall be in the
custody of others, and all property comprising the Trust Estate, and each and
every part thereof, and exclude the Issuer and its agents, servants and
employees wholly therefrom, and have, hold, use, operate, manage, and control
the same and each and every part thereof, and in the name of the Issuer or
otherwise, as they shall deem best, conduct the business thereof and exercise
the privileges pertaining thereto and all the rights and powers of the Issuer
and use all of the then existing Trust Estate for that purpose, and collect and
receive all charges, income and Available Funds of the same and of every part
thereof, and after deducting therefrom all expenses incurred hereunder and all
other proper outlays herein authorized, and all payments which may be made as
just and reasonable compensation for its own services, and for the services of
its attorneys, agents, and assistants, the Trustee shall apply the rest and
residue of the money received by the Trustee as follows:

               FIRST, to the Trustee and the Delaware Trustee, any Trustee Fee
        and any Delaware Trustee Fee, respectively due and owing;

               SECOND, to the Master Servicer, any Servicing Fees due and
        remaining unpaid;

               THIRD, pro rata, based on amounts due and owing, (i) to the
        Counterparties, pro rata, without preference or priority of any kind, in
        proportion to their respective entitlements under the applicable
        Derivative Products (excluding all Termination Payments other than
        Priority Termination Payments) and (ii) to the Class A Noteholders of
        each Class for amounts due and unpaid on each such Class of Class A
        Notes for interest, ratably, without preference or priority of any kind,
        according to the amounts due and payable on each such Class of Class A
        Notes for such interest;

                                       57
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               FOURTH, to the Class A Noteholders for amounts due and unpaid on
        the Class A Notes for principal, ratably, without preference or priority
        of any kind, according to the amounts due and payable on the Class A
        Notes for principal;

               FIFTH, to the Class B Noteholders for amounts due and unpaid on
        the Class B Notes for interest, ratably, without preference or priority
        of any kind, according to the amounts due and payable on the Class B
        Notes for such interest;

               SIXTH, to the Class B Noteholders for amounts due and unpaid on
        the Class B Notes for principal, ratably, without preference or priority
        of any kind, according to the amounts due and payable on the Class B
        Notes for principal;

               SEVENTH, to the Class B Noteholders for amount due and unpaid on
        the Class B Notes for Class B Notes Carry-Over Amount, ratably, without
        preference or priority of any kind, according to the amounts due and
        payable on the Class B Notes for such Class B Notes Carry-Over Amount;

               EIGHTH, to the Counterparties, in proportion to the respective
        entitlements under the applicable Derivative Product Agreement, ratably,
        without preference or priority of any kind, for any Termination Payments
        due and any other unpaid Issuer Derivative Payments;

               NINTH, to the Master Servicer, for any unpaid Carryover Servicing
        Fees; and

               TENTH, to the Issuer.

        The Trustee may fix a record date and payment date for any payment to
Registered Owners pursuant to this Section. At least 15 days before such record
date, the Trustee shall mail to each Registered Owner and the Issuer a notice
that states the record date, the payment date and the amount to be paid.

        SECTION 6.03. REMEDIES ON DEFAULT; ADVICE OF COUNSEL. Upon the happening
of any Event of Default, the Trustee may proceed to protect and enforce the
rights of the Trustee and the Registered Owners in such manner as counsel for
the Trustee may advise, whether for the specific performance of any covenant,
condition, agreement or undertaking herein contained, or in aid of the execution
of any power herein granted, or for the enforcement of such other appropriate
legal or equitable remedies as, in the opinion of such counsel, may be more
effectual to protect and enforce the rights aforesaid.

        SECTION 6.04. REMEDIES ON DEFAULT; SALE OF TRUST ESTATE. Upon the
happening of any Event of Default and if the principal of all of the Outstanding
Obligations shall have been declared due and payable, then and in every such
case, and irrespective of whether other remedies authorized shall have been
pursued in whole or in part, the Trustee may sell, with or without entry, to the
highest bidder the Trust Estate, and all right, title, interest, claim and
demand thereto and the right of redemption thereof, at any such place or places,
and at such time or times and upon such notice and terms as may be required by
law. Upon such sale the Trustee may make and deliver to the purchaser or
purchasers a good and sufficient assignment or conveyance for the same, which

                                       58
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sale shall be a perpetual bar both at law and in equity against the Issuer and
all Persons claiming such properties. No purchaser at any sale shall be bound to
see to the application of the purchase money or to inquire as to the
authorization, necessity, expediency or regularity of any such sale. The Trustee
is hereby irrevocably appointed the true and lawful attorney-in-fact of the
Issuer, in its name and stead, to make and execute all bills of sale,
instruments of assignment and transfer and such other documents of transfer as
may be necessary or advisable in connection with a sale of all or part of the
Trust Estate, but the Issuer, if so requested by the Trustee, shall ratify and
confirm any sale or sales by executing and delivering to the Trustee or to such
purchaser or purchasers all such instruments as may be necessary, or in the
judgment of the Trustee, proper for the purpose which may be designated in such
request. In addition, the Trustee may proceed to protect and enforce the rights
of the Trustee and the Registered Owners of the Obligations in such manner as
counsel for the Trustee may advise, whether for the specific performance of any
covenant, condition, agreement or undertaking herein contained, or in aid of the
execution of any power herein granted, or for the enforcement of such other
appropriate legal or equitable remedies as may in the opinion of such counsel,
be more effectual to protect and enforce the rights aforesaid. The Trustee shall
take any such action or actions if requested to do so in writing by the
Registered Owners of at least a majority of the principal amount of the Highest
Priority Obligations at the time Outstanding.

        Notwithstanding the foregoing, the Trustee is prohibited from selling
the Financed Eligible Loans following an Event of Default, other than a default
in the payment of any principal or interest on any Note, unless:

                (a) The Registered Owners of all of the Highest Priority
        Obligations at the time Outstanding consent to such a sale;

                (b) The proceeds of such a sale will be sufficient to discharge
        all the Outstanding Obligations pursuant to Article X hereof at the date
        of such a sale; or

                (c) The Issuer, or the Administrator on behalf of the Issuer,
        determines that the collections on the Financed Eligible Loans would not
        be sufficient on an ongoing basis to make all payments on such
        Obligations as such payments would have become due if such Obligations
        had not been declared due and payable, and the Trustee obtains the
        consent of the Registered Owners of at least 66-2/3% of the aggregate
        principal amount of the Highest Priority Obligations at the time
        Outstanding.

Such a sale shall also require the consent of all the Registered Owners of the
Class B Notes unless the proceeds of such a sale would be sufficient to
discharge the Class B Notes pursuant to Article X hereof at the date of such a
sale.

SECTION 6.05. APPOINTMENT OF RECEIVER. In case an Event of Default occurs, and
if all of the Outstanding Obligations shall have been declared due and payable
and in case any judicial proceedings are commenced to enforce any right of the
Trustee or of the Registered Owners under this Indenture or otherwise, then as a
matter of right, the Trustee shall be entitled to the appointment of a receiver
of the Trust Estate and of the earnings, income or revenue, rents, issues and
profits thereof with such powers as the court making such appointments may
confer.

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SECTION 6.06. RESTORATION OF POSITION. In case the Trustee shall have proceeded
to enforce any rights under this Indenture by sale or otherwise, and such
proceedings shall have been discontinued, or shall have been determined
adversely to the Trustee, then and in every such case to the extent not
inconsistent with such adverse decree, the Issuer, the Trustee and the
Registered Owners shall be restored to their former respective positions and the
rights hereunder in respect to the Trust Estate, and all rights, remedies and
powers of the Trustee and of the Registered Owners shall continue as though no
such proceeding had been taken.

SECTION 6.07. APPLICATION OF SALE PROCEEDS. The proceeds of any sale of the
Trust Estate, together with any funds at the time held by the Trustee and not
otherwise appropriated, shall be applied by the Trustee as set forth in Section
6.02 hereof, and then to the Issuer or whomsoever shall be lawfully entitled
thereto.

SECTION 6.08. ACCELERATION OF MATURITY; RESCISSION AND ANNULMENT. If an Event of
Default should occur and be continuing, then and in every such case the Trustee
or the Registered Owners of Obligations representing not less than a majority of
the Outstanding Amount of the Highest Priority Obligations may declare all the
Outstanding Obligations to be immediately due and payable, by a notice in
writing to the Issuer (and to the Trustee if given by the Registered Owners),
and upon any such declaration the unpaid principal amount of such Outstanding
Obligations, together with accrued and unpaid interest thereon through the date
of acceleration, shall become immediately due and payable, subject, however, to
Section 6.04 hereof.

        At any time after such declaration of acceleration of maturity has been
made and before a judgment or decree for payment of the money due has been
obtained by the Trustee as hereinafter in this Article provided, the Registered
Owners of Obligations representing a majority of the collective aggregate
principal amount of the Highest Priority Obligations then Outstanding, by
written notice to the Issuer and the Trustee, may rescind and annul such
declaration and its consequences if:

                (a) the Issuer has paid or deposited with the Trustee a sum
        sufficient to pay:

                        (i) all payments of principal of and interest on all
                Obligations and all other amounts that would then be due
                hereunder or upon such Obligations if the Event of Default
                giving rise to such acceleration had not occurred; and

                        (ii) all sums paid or advanced by the Trustee hereunder
                and the reasonable compensation, expenses, disbursements and
                advances of the Trustee, the Master Servicer, any Subservicer
                and the Delaware Trustee and their agents and counsel; and

                (b) all Events of Default, other than the nonpayment of the
        principal of the Obligations that has become due solely by such
        acceleration, have been cured or waived as provided in Section 6.14
        hereof.

        No such rescission shall affect any subsequent default or impair any
right consequent thereto.

        SECTION 6.09. REMEDIES NOT EXCLUSIVE. The remedies herein conferred upon
or reserved to the Trustee or the Registered Owners of Obligations are not
intended to be exclusive of any other remedy, but each remedy herein provided
shall be cumulative and shall be in addition to every other remedy given
hereunder or now or hereafter existing, and every power and remedy hereby given
to the Trustee or to the Registered Owners of Obligations, or any supplement
hereto, may be exercised from time to time as often as may be deemed expedient.
No delay or omission of the Trustee or of any Registered Owner of Obligations to
exercise any power or right arising from any default hereunder shall impair any
such right or power or shall be construed to be a waiver of any such default or
to be acquiescence therein.

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        SECTION 6.10. COLLECTION OF INDEBTEDNESS AND SUITS FOR ENFORCEMENT BY
TRUSTEE. The Issuer covenants that if:

                (a) default is made in the payment of any installment of
        interest, if any, on any Notes when such interest becomes due and
        payable and such default continues for a period of five (5) days; or

                (b) default is made in the payment of the principal of (or
        premium, if any, on) any Notes at their Note Final Maturity Date,

then the Issuer will, upon demand of the Trustee, pay to the Trustee, for the
benefit of the Registered Owners, the whole amount then due and payable on such
Notes for principal (and premium, if any) and interest, with interest upon any
overdue principal (and premium, if any) and, to the extent that payment of such
interest shall be legally enforceable, upon any overdue installments of
interest, if any, at the rate or rates borne by or provided for in such Notes,
and, in addition thereto, such further amount as shall be sufficient to cover
the costs and expenses of collection, including the reasonable compensation,
fees, expenses, disbursements and advances of the Trustee and its agents and
counsel.

        If the Issuer fails to pay such amounts forthwith upon such demand, the
Trustee, in its own name and as Trustee of an express trust, may upon receiving
indemnification satisfactory to the Trustee institute a judicial proceeding for
the collection of the sums so due and unpaid, may prosecute such proceeding to
judgment or final decree, and may enforce the same against the Issuer or any
other obligor upon such Notes of such Class and collect the moneys adjudged or
decreed to be payable in the manner provided by law out of the property of the
Issuer or any other obligor upon such Notes, wherever situated.

        If an Event of Default with respect to the Notes occurs and is
continuing, the Trustee may, after being indemnified to its satisfaction and in
its discretion, proceed to protect and enforce its rights and the rights of the
Registered Owners of Notes by such appropriate judicial proceedings as the
Trustee shall deem most effectual to protect and enforce any such rights,
whether for the specific enforcement of any covenant or agreement in this
Indenture or in aid of the exercise of any power granted herein, or to enforce
any other proper remedy.

        SECTION 6.11. DIRECTION OF TRUSTEE. Upon the happening of any Event of
Default, the Registered Owners of at least 51% of the collective aggregate
principal amount of the Highest Priority Obligations then Outstanding, shall
have the right by an instrument or instruments in writing delivered to the
Trustee to direct and control the Trustee as to the method of taking any and all
proceedings for any sale of any or all of the Trust Estate, or for the
appointment of a receiver, if permitted by law, and may at any time cause any
proceedings authorized by the terms hereof to be so taken or to be discontinued
or delayed; provided, however, that such Registered Owners shall not be entitled

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to cause the Trustee to take any proceedings which in the Trustee's opinion
would be unjustly prejudicial to non-assenting Registered Owners of Obligations,
but the Trustee shall be entitled to assume that the action requested by the
Registered Owners of at least 51% of the collective aggregate principal amount
of the Highest Priority Obligations then Outstanding will not be prejudicial to
any non-assenting Registered Owners unless the Registered Owners of more than
50% of the collective aggregate principal amount of the non-assenting Registered
Owners of such Obligations, in writing, show the Trustee how they will be
prejudiced. Provided, however, that anything in this Indenture to the contrary
notwithstanding, the Registered Owners of a majority of the collective aggregate
principal amount of the Highest Priority Obligations then Outstanding together
with the Registered Owners of a majority of the collective aggregate principal
amount of all other Obligations then Outstanding shall have the right, at any
time, by an instrument or instruments in writing executed and delivered to the
Trustee, to direct the method and place of conducting all proceedings to be
taken in connection with the enforcement of the terms and conditions of this
Indenture, or for the appointment of a receiver or any other proceedings
hereunder, provided that such direction shall not be otherwise than in
accordance with the provisions of law and of this Indenture. The provisions of
this Section shall be expressly subject to the provisions of Sections 7.01(c),
7.05 and 7.07 hereof.

        SECTION 6.12. RIGHT TO ENFORCE IN TRUSTEE. No Registered Owner of any
Obligation shall have any right as such Registered Owner to institute any suit,
action or proceedings for the enforcement of the provisions of this Indenture or
for the execution of any trust hereunder or for the appointment of a receiver or
for any other remedy hereunder, all rights of action hereunder being vested
exclusively in the Trustee, unless and until such Registered Owner shall have
previously given to the Trustee written notice of a default hereunder, and of
the continuance thereof, and also unless the Registered Owners of the requisite
principal amount of the Obligations then Outstanding shall have made written
request upon the Trustee and the Trustee shall have been afforded reasonable
opportunity to institute such action, suit or proceeding in its own name, and
unless the Trustee shall have been offered indemnity and security satisfactory
to it against the costs, expenses and liabilities to be incurred therein or
thereby, which offer of indemnity shall be an express condition precedent
hereunder to any obligation of the Trustee to take any such action hereunder,
and the Trustee for 30 days after receipt of such notification, request and
offer of indemnity, shall have failed to institute any such action, suit or
proceeding. It is understood and intended that no one or more Registered Owners
of the Obligations shall have the right in any manner whatever by his or their
action to affect, disturb or prejudice the lien of this Indenture or to enforce
any right hereunder except in the manner herein provided and for the equal
benefit of the Registered Owners of not less than a majority of the collective
aggregate principal amount of the Obligations then Outstanding.

        SECTION 6.13. PHYSICAL POSSESSION OF OBLIGATIONS NOT REQUIRED. In any
suit or action by the Trustee arising under this Indenture or on all or any of
the Obligations issued hereunder, or any supplement hereto, the Trustee shall
not be required to produce such Obligations, but shall be entitled in all things
to maintain such suit or action without their production.

        SECTION 6.14. WAIVERS OF EVENTS OF DEFAULT. The Trustee may in its
discretion waive any Event of Default hereunder and its consequences and rescind
any declaration of acceleration of Obligations, and shall do so upon the written
request of the Registered Owners of at least a majority of the collective
aggregate principal amount of the Highest Priority Obligations then Outstanding;
provided, however, that there shall not be waived (a) any Event of Default in

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the payment of the principal of or premium on any Outstanding Obligations at the
date of maturity thereof, or any default in the payment when due of the interest
on any such Obligations, unless prior to such waiver or rescission, all arrears
of interest or all arrears of payments of principal and all expenses of the
Trustee, in connection with such default shall have been paid or provided for;
or (b) any default in the payment of amounts set forth in Sections 7.05 and 7.07
hereof. In case of any such waiver or rescission, or in case any proceedings
taken by the Trustee on account of any such default shall have been discontinued
or abandoned or determined adversely to the Trustee, then and in every such case
the Issuer, the Trustee and the Registered Owners of Obligations shall be
restored to their former positions and rights hereunder respectively, but no
such waiver or rescission shall extend to or affect any subsequent or other
default, or impair any rights or remedies consequent thereon. The Trustee shall
give written notice to each Rating Agency of any waiver of an Event of Default
pursuant to this Section.

        SECTION 6.15. NOTICE OF DEFAULTS. Within 90 days after the occurrence of
any default hereunder with respect to the Notes, the Trustee shall transmit in
the manner and to the extent provided in Section 313(c) of the Trust Indenture
Act, notice of such default hereunder known to the Trustee, unless such default
shall have been cured or waived; provided, however, that, except in the case of
a default in the payment of the principal of (or premium, if any) or interest
with respect to any Note, or in the payment of any sinking fund installment with
respect to the Notes, the Trustee shall be protected in withholding such notice
if and so long as an authorized officer of the Trustee in good faith determines
that the withholding of such notice is in the interest of the Registered Owners
of the Notes. For the purpose of this Section, the term "default" means any
event which is, or after notice or lapse of time or both would become, an Event
of Default with respect to the Notes.

                                  ARTICLE VII

                                   THE TRUSTEE

        SECTION 7.01. ACCEPTANCE OF TRUST. The Trustee hereby accepts the trusts
imposed upon it by this Indenture, and agrees to perform said trusts, but only
upon and subject to the following terms and conditions:

                (a) Except during the continuance of an Event of Default,

                        (i) the Trustee undertakes to perform such duties and
                only such duties as are specifically set forth in this
                Indenture, and no implied covenants or obligations shall be read
                into this Indenture against the Trustee; and

                        (ii) in the absence of bad faith on its part, the
                Trustee may conclusively rely, as to the truth of the statements
                and the correctness of the opinions expressed therein, upon
                certificates or opinions furnished to the Trustee and conforming
                to the requirements of this Indenture; but in the case of any
                such certificates or opinions which by any provisions hereof are
                specifically required to be furnished to the Trustee, the
                Trustee shall be under a duty to examine the same to determine
                whether or not they conform as to form with the requirements of
                this Indenture and whether or not they contain the statements
                required under this Indenture.

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                (b) In case an Event of Default has occurred and is continuing,
        the Trustee, in exercising the rights and powers vested in it by this
        Indenture, shall use the same degree of care and skill in their exercise
        as a prudent person would exercise or use under the circumstances in the
        conduct of his or her own affairs.

                (c) Before taking any action hereunder requested by Registered
        Owners, the Trustee may require that it be furnished an indemnity bond
        or other indemnity and security satisfactory to it by the Registered
        Owners, as applicable, for the reimbursement of all expenses to which it
        may be put and to protect it against all liability.

        SECTION 7.02. RECITALS OF OTHERS. The recitals, statements and
representations set forth herein and in the Notes shall be taken as the
statements of the Issuer, and the Trustee assumes no responsibility for the
correctness of the same. The Trustee makes no representations as to the title of
the Issuer in the Trust Estate or as to the security afforded thereby and
hereby, or as to the validity or sufficiency of this Indenture or of the Notes
issued hereunder, and the Trustee shall incur no responsibility in respect of
such matters.

        SECTION 7.03. AS TO FILING OF INDENTURE. The Trustee shall be under no
duty (a) to file or record, or cause to be filed or recorded, this Indenture or
any instrument supplemental hereto, (b) to procure any further order or
additional instruments of further assurance, (c) to see to the delivery to it of
any personal property intended to be mortgaged or pledged hereunder or
thereunder, (d) to do any act which may be suitable to be done for the better
maintenance of the lien or security hereof (other than the filing of any
continuation (but not initial) statements), or (e) to give notice of the
existence of such lien, or for extending or supplementing the same or to see
that any rights to the Trust Estate and Funds intended now or hereafter to be
transferred in trust hereunder are subject to the lien hereof. The Trustee shall
not be liable for failure of the Issuer to pay any tax or taxes in respect of
such property, or any part thereof, or the income therefrom or otherwise, nor
shall the Trustee be under any duty in respect of any tax which may be assessed
against it or the Registered Owners in respect of such property or pledged to
the Trust Estate. The Trustee agrees to prepare, request that the Issuer execute
(if such execution is necessary for any such filing) and file in a timely manner
(if received from the Issuer in a timely manner) with any necessary execution by
the Issuer, the continuation statements referred to herein; provided, that the
Trustee shall have no responsibility for the sufficiency, adequacy or priority
of any initial filing and in the absence of written notice to the contrary by
the Issuer or other Authorized Representative, may rely and shall be protected
in relying on all information and exhibits in such initial filings for the
purposes of any continuation statements.

        SECTION 7.04. TRUSTEE MAY ACT THROUGH AGENTS. The Trustee may execute
any of the trusts or powers hereof and perform any duty hereunder, either itself
or by or through its attorneys, agents or employees, and it shall not be
answerable or accountable for any default, neglect or misconduct of any such
attorneys, agents or employees, if reasonable care has been exercised in the
appointment. All reasonable costs incurred by the Trustee and all reasonable
compensation to all such persons as may reasonably be employed in connection
with the trusts hereof shall be paid by the Issuer.

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        SECTION 7.05. INDEMNIFICATION OF TRUSTEE. Other than with respect to its
duties to make payment on the Obligations when due and its duty to pursue the
remedy of acceleration as provided respectively in Sections 6.02 and 6.08
hereof, for each of which no additional security or indemnity may be required,
the Trustee shall be under no obligation or duty to perform any act at the
request of Registered Owners or to institute or defend any suit in respect
thereof unless properly indemnified and provided with security to its
satisfaction as provided in Section 7.01(c) hereof. The Trustee shall not be
required to take notice, or be deemed to have knowledge, of any default or Event
of Default of the Issuer hereunder and may conclusively assume that there has
been no such default or Event of Default (other than an Event of Default
described in Section 6.01(a) or (b) hereof) unless and until it shall have been
specifically notified in writing at the address in Section 9.01 hereof of such
default or Event of Default by (a) the Registered Owners of the required
percentages in principal amount of the Obligations then Outstanding hereinabove
specified or (b) an Authorized Representative. However, the Trustee may begin
suit, or appear in and defend suit, execute any of the trusts hereby created,
enforce any of its rights or powers hereunder, or do anything else in its
judgment proper to be done by it as Trustee, without assurance of reimbursement
or indemnity, and in such case the Trustee shall be reimbursed or indemnified by
the Registered Owners requesting such action, if any, or the Issuer in all other
cases, for all fees, costs and expenses, liabilities, outlays and counsel fees
and other reasonable disbursements properly incurred in connection therewith,
unless such costs and expenses, liabilities, outlays and attorneys' fees and
other reasonable disbursements properly incurred in connection therewith are
adjudicated to have resulted from the negligence or willful misconduct of the
Trustee. In furtherance and not in limitation of this Section, the Trustee shall
not be liable for, and shall be held harmless by the Issuer from, following any
Issuer Orders, instructions or other directions upon which the Trustee is
authorized to rely pursuant to this Indenture or any other agreement to which it
is a party. If the Issuer or the Registered Owners, as appropriate, shall fail
to make such reimbursement or indemnification, the Trustee may reimburse itself
from any money in its possession under the provisions of this Indenture, subject
only to the prior lien of the Notes for the payment of the principal thereof,
premium, if any, and interest thereon from the Collection Fund. None of the
provisions contained in this Indenture or any other agreement to which it is a
party shall require the Trustee to act or to expend or risk its own funds or
otherwise incur individual financial liability in the performance of any of its
duties or in the exercise of any of its rights or powers if the Registered
Owners shall not have offered security and indemnity acceptable to it or if it
shall have reasonable grounds for believing that prompt repayment of such funds
or adequate indemnity against such risk or liability is not reasonably assured
to it.

        The Issuer agrees to indemnify the Trustee for, and to hold it harmless
against, any loss, liability or expenses incurred without negligence or bad
faith on its part, arising out of or in connection with the acceptance or
administration of the trust or trusts hereunder, including the costs and
expenses of defending itself against any claim or liability in connection with
the exercise or performance of any of its powers or duties hereunder arising
from the Trust Estate. The Issuer agrees to indemnify and hold harmless the

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Trustee against any and all claims, demands, suits, actions or other proceedings
and all liabilities, costs and expenses whatsoever caused by any untrue
statement or misleading statement or alleged untrue statement or alleged
misleading statement of a material fact contained in any offering document
distributed in connection with the issuance of the Notes or caused by any
omission or alleged omission from such offering document of any material fact
required to be stated therein or necessary in order to make the statements made
therein in the light of the circumstances under which they were made, not
misleading.

        SECTION 7.06. TRUSTEE'S RIGHT TO RELIANCE. The Trustee shall be
protected in acting upon any notice, resolution, request, consent, order,
certificate, report, appraisal, opinion, report or document of the Issuer, the
Administrator, the Master Servicer or a Subservicer or other paper or document
believed by it to be genuine and to have been signed or presented by the proper
party or parties. The Trustee may consult with experts and with counsel (who may
but need not be counsel for the Issuer, the Trustee, or for a Registered Owner),
and the opinion of such counsel shall be full and complete authorization and
protection in respect of any action taken or suffered, and in respect of any
determination made by it hereunder in good faith and in accordance with the
opinion of such counsel.

        Whenever in the administration hereof the Trustee shall reasonably deem
it desirable that a matter be proved or established prior to taking, suffering
or omitting any action hereunder, the Trustee (unless other evidence be herein
specifically prescribed) may, in the absence of bad faith on its part, rely upon
a certificate signed by an Authorized Representative or an authorized officer of
the Administrator, the Master Servicer or a Subservicer.

        The Trustee shall not be liable for any action taken, suffered or
omitted by it in good faith and believed by it to be authorized or within the
discretion or rights or powers conferred upon it hereby; provided, however, that
the Trustee shall be liable for its negligence or willful misconduct in taking
such action.

        The Trustee is authorized to enter into agreements with other Persons,
in its capacity as Trustee, in order to carry out or implement the terms and
provisions of this Indenture. The Trustee shall not be liable with respect to
any action taken, suffered or omitted to be taken in good faith in accordance
with this Indenture or any other transaction document or at the direction of the
Registered Owners evidencing the appropriate percentage of the aggregate
principal amount of the Outstanding Notes relating to the time, method and place
of conducting any proceeding for any remedy available to the Trustee, or
exercising any trust or power conferred upon the Trustee, under this Indenture
or any other transaction document.

        SECTION 7.07. COMPENSATION OF TRUSTEE. Except as otherwise expressly
provided herein, all advances, counsel fees (including without limitation
allocated fees of in-house counsel) and other expenses reasonably made or
incurred by the Trustee in and about the execution and administration of the
trust hereby created and reasonable compensation to the Trustee for its services
in the premises shall be paid by the Issuer. The compensation of the Trustee
shall not be limited to or by any provision of law in regard to the compensation
of trustees of an express trust. The Trustee shall not materially increase the
Trustee Fee without giving the Issuer and each Rating Agency at least 90 days'
written notice prior to the beginning of a Fiscal Year. If not paid by the
Issuer, the Trustee shall have a lien against all money held pursuant to this
Indenture, subject only to the prior lien of the Obligations against the money
and investments in the Collection Fund for the payment of the principal thereof,
premium, if any, and interest thereon, for such reasonable compensation,
expenses, advances and counsel fees incurred in and about the execution of the
trusts hereby created and the exercise and performance of the powers and duties
of the Trustee hereunder and the cost and expense incurred in defending against
any liability in the premises of any character whatsoever (unless such liability
is adjudicated to have resulted from the negligence or willful misconduct of the
Trustee).

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        SECTION 7.08. CREDITOR RELATIONSHIPS. The Trustee shall comply with
Section 311(a) of the Trust Indenture Act, excluding any creditor relationship
listed in Section 311(b) of the Trust Indenture Act. A Trustee who has resigned
or been removed shall be subject to Section 311(a) of the Trust Indenture Act to
the extent indicated therein. The Trustee may act as depository for, and permit
any of its officers or directors to act as a member of, or act in any other
capacity in respect to, any committee formed to protect the rights of the
Registered Owners or to effect or aid in any reorganization growing out of the
enforcement of the Notes or of this Indenture, whether or not any such committee
shall represent the Registered Owners of more than 60% of the collective
aggregate principal amount of the Outstanding Obligations.

        SECTION 7.09. RESIGNATION OF TRUSTEE. The Trustee and any successor to
the Trustee may resign and be discharged from the trust created by this
Indenture by giving to the Issuer notice in writing which notice shall specify
the date on which such resignation is to take effect; provided, however, that
such resignation shall only take effect on the day specified in such notice if a
successor Trustee shall have been appointed pursuant to Section 7.11 hereof (and
is qualified to be the Trustee under the requirements of Section 7.11 hereof).
If no successor Trustee has been appointed by the date specified or within a
period of 90 days from the receipt of the notice by the Issuer, whichever period
is the longer, the Trustee may (a) appoint a temporary successor Trustee having
the qualifications provided in Section 7.11 hereof or (b) request a court of
competent jurisdiction to (i) require the Issuer to appoint a successor, as
provided in Section 7.11 hereof, within three days of the receipt of citation or
notice by the court, or (ii) appoint a Trustee having the qualifications
provided in Section 7.11 hereof. In no event may the resignation of the Trustee
be effective until a qualified successor Trustee shall have been selected and
appointed. In the event a temporary successor Trustee is appointed pursuant to
clause (a) above, the Issuer may remove such temporary successor Trustee and
appoint a successor thereto pursuant to Section 7.11 hereof.

        SECTION 7.10. REMOVAL OF TRUSTEE. The Trustee or any successor Trustee
may be removed (a) at any time by the Registered Owners of a majority of the
collective aggregate principal amount of the Highest Priority Obligations then
Outstanding, (b) by the Issuer for cause or upon the sale or other disposition
of the Trustee or its corporate trust functions or (c) by the Issuer without
cause so long as no Event of Default exists or has existed within the last 30
days, upon payment to the Trustee so removed of all money then due to it
hereunder and appointment of a successor thereto by the Issuer and acceptance
thereof by said successor. One copy of any such order of removal shall be filed
with the Delaware Trustee and the other with the Trustee so removed.

        In the event a Trustee (or successor Trustee) is removed, by any person
or for any reason permitted hereunder, such removal shall not become effective
until (a) in the case of removal by the Registered Owners, such Registered
Owners by instrument or concurrent instruments in writing (signed and
acknowledged by such Registered Owners or their attorneys-in-fact) filed with
the Trustee removed have appointed a successor Trustee or otherwise the Issuer
shall have appointed a successor, and (b) the successor Trustee has accepted
appointment as such.

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        SECTION 7.11. SUCCESSOR TRUSTEE. In case at any time the Trustee or any
successor Trustee shall resign, be dissolved, or otherwise shall be disqualified
to act or be incapable of acting, or in case control of the Trustee or of any
successor Trustee or of its officers shall be taken over by any public officer
or officers, a successor Trustee may be appointed by the Issuer by an instrument
in writing duly authorized by the Issuer. In the case of any such appointment by
the Issuer of a successor to the Trustee, the Issuer shall forthwith cause
notice thereof to be mailed to the Registered Owners of the Notes at the address
of each Registered Owner appearing on the note registration books maintained by
the Trustee, as registrar.

        Every successor Trustee appointed by the Registered Owners, by a court
of competent jurisdiction, or by the Issuer shall be a bank or trust company in
good standing, organized and doing business under the laws of the United States
or of a state therein, which has a reported capital and surplus of not less than
$50,000,000, be authorized under the law to exercise corporate trust powers, be
subject to supervision or examination by a federal or state authority, and be an
Eligible Lender so long as such designation is necessary to maintain guarantees
and federal benefits under the Higher Education Act with respect to the Financed
Eligible Loans originated under the Higher Education Act.

        SECTION 7.12. MANNER OF VESTING TITLE IN TRUSTEE. Any successor Trustee
appointed hereunder shall execute, acknowledge and deliver to its predecessor
Trustee, and also to the Issuer, an instrument accepting such appointment
hereunder, and thereupon such successor Trustee, without any further act, deed
or conveyance shall become fully vested with all the estate, properties, rights,
powers, trusts, duties and obligations of its predecessors in trust hereunder
(except that the predecessor Trustee shall continue to have the benefits to
indemnification hereunder together with the successor Trustee), with like effect
as if originally named as Trustee herein; but, the Trustee ceasing to act shall
nevertheless, on the written request of an Authorized Representative, or an
authorized officer of the successor Trustee, execute, acknowledge and deliver
such instruments of conveyance and further assurance and do such other things as
may reasonably be required for more fully and certainly vesting and confirming
in such successor Trustee all the right, title and interest of the Trustee which
it succeeds, in and to the Trust Estate and such rights, powers, trusts, duties
and obligations, and the Trustee ceasing to act also, upon like request, shall
pay over, assign and deliver to the successor Trustee any money or other
property or rights subject to the lien of this Indenture, including any pledged
securities which may then be in its possession. Should any deed or instrument in
writing from the Issuer be required by the successor Trustee for more fully and
certainly vesting in and confirming to such new Trustee such estate, properties,
rights, powers and duties, any and all such deeds and instruments in writing
shall on request be executed, acknowledged and delivered by the Issuer.

        In case any of the Notes to be issued hereunder shall have been
authenticated but not delivered, any successor Trustee may adopt the certificate
of authentication of the Trustee or of any successor to the Trustee; and in case
any of the Notes shall not have been authenticated, any successor to the Trustee
may authenticate such Notes in its own name; and in all such cases such
certificate shall have the full force which it has anywhere in the Notes or in
this Indenture.

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        SECTION 7.13. ADDITIONAL COVENANTS BY THE TRUSTEE TO CONFORM TO THE
HIGHER EDUCATION ACT. The Trustee covenants that it will at all times (a) be an
Eligible Lender under the Higher Education Act so long as such designation is
necessary, as determined by the Issuer, (b) maintain the guarantees and federal
benefits under the Higher Education Act with respect to the Financed Eligible
Loans, (c) acquire Eligible Loans originated under the Higher Education Act in
its capacity as an Eligible Lender and (d) not knowingly dispose of or deliver
any Financed Eligible Loans originated under the Higher Education Act or any
security interest in any such Financed Eligible Loans to any party who is not an
Eligible Lender so long as the Higher Education Act or Regulations adopted
thereunder require an Eligible Lender to be the owner or holder of such Financed
Eligible Loans; provided, however, that nothing above shall prevent the Trustee
from delivering the Eligible Loans to the Master Servicer, a Subservicer or a
Guaranty Agency.

        SECTION 7.14. RIGHT OF INSPECTION. A Registered Owner shall be permitted
at reasonable times during regular business hours and in accordance with
reasonable regulations prescribed by the Trustee to examine at the principal
office of the Trustee a copy of any report or instrument theretofore filed with
the Trustee relating to the condition of the Trust Estate.

        SECTION 7.15. LIMITATION WITH RESPECT TO EXAMINATION OF REPORTS. Except
as provided in this Indenture, the Trustee shall be under no duty to examine any
report or statement or other document required or permitted to be filed with it
by the Issuer.

        SECTION 7.16. SERVICING AGREEMENTS. The Trustee acknowledges the receipt
of copies of the Master Servicing Agreement and Subservicing Agreements
described in Section 4.04 hereof.

        SECTION 7.17. ADDITIONAL COVENANTS OF TRUSTEE. The Trustee, by the
execution hereof, covenants, represents and agrees that:

                (a) it will not exercise any of the rights, duties or privileges
        under this Indenture in such manner as would cause the Eligible Loans
        held or acquired under the terms hereof to be transferred, assigned or
        pledged as security to any person or entity other than as permitted by
        this Indenture; and

                (b) it will comply with the Higher Education Act and the
        Regulations and will, upon written notice from an Authorized
        Representative, the Secretary or a Guaranty Agency, use its reasonable
        efforts to cause this Indenture to be amended (in accordance with
        Section 8.01 hereof) if the Higher Education Act or Regulations are
        hereafter amended so as to be contrary to the terms of this Indenture.

        SECTION 7.18. NOTICES TO RATING AGENCIES. It shall be the duty of the
Issuer to notify each Rating Agency then rating any of the Notes of (a) any
amendment, change, expiration, extension or renewal of this Indenture, (b)
prepayment of all the Notes, (c) any change in the Trustee, (d) any other
information reasonably required to be reported to each Rating Agency under any
Supplemental Indenture or (e) any amendment to or transfer of an Investment
Agreement. All notices required to be forwarded to the Rating Agencies under
this Section shall be sent in writing at the following addresses:

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        Via electronic delivery to SERVICER_REPORTS@SANDP.COM
        For any information not available in electronic format:
        Standard & Poor's Ratings Services
        a Division of the McGraw-Hill Companies, Inc.
        55 Water Street, 41st Floor
        New York, New York  10041-0003
        Attention:  ABS Surveillance Group

        Via electronic delivery to SURVEILLANCE-ABS-CONSUMER@FITCHRATINGS.COM
        For any information not available in electronic format:
        Fitch, Inc.
        One State Street Plaza
        New York, New York  10004
        Attention:  ABS Surveillance

        Via electronic delivery to SERVICERREPORTS@MOODYS.COM
        For any information not available in electronic format:
        Moody's Investors Service, Inc.
        ABS/RMBS Monitoring Department
        25th Floor
        7 World Trade Center
        250 Greenwich Street
        New York, New York  10007

        The Trustee also acknowledges that each Rating Agency's periodic review
for maintenance of a Rating on any Class of Notes may involve discussions and/or
meetings with representatives of the Trustee at mutually agreeable times and
places.

        SECTION 7.19. MERGER OF THE TRUSTEE. Any corporation into which the
Trustee may be merged or with which it may be consolidated, or any corporation
resulting from any merger or consolidation to which the Trustee shall be a
party, or any corporation succeeding to all or substantially all of the
corporate trust business of the Trustee, shall be the successor of the Trustee
hereunder, provided such corporation shall be otherwise qualified and eligible
under this Indenture, without the execution or filing of any paper of any
further act on the part of any other parties hereto.

        SECTION 7.20. RECEIPT OF FUNDS FROM MASTER SERVICER OR A SUBSERVICER.
The Trustee shall not be accountable or responsible in any manner whatsoever for
any action of the Issuer, the Administrator, the depository bank of any funds of
the Issuer, or the Master Servicer or a Subservicer while such Master Servicer
or Subservicer is acting as bailee or agent of the Trustee with respect to the
Eligible Loans for actions taken in compliance with any instruction or direction
given to the Trustee, or for the application of funds or moneys by the Master
Servicer or a Subservicer until such time as funds are received by the Trustee.

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        SECTION 7.21. SPECIAL CIRCUMSTANCES LEADING TO RESIGNATION OF TRUSTEE.
Because the Trustee serves as trustee hereunder for Obligations of different
priorities, it is possible that circumstances may arise which will cause the
Trustee to resign from its position as trustee for one or more of the
Obligations. In the event that the Trustee makes a determination that it should
so resign, due to the occurrence of an Event of Default or potential default
hereunder, or otherwise, the Issuer may permit such resignation as to one or
more of the Obligations or request the Trustee's resignation as to all
Obligations, as the Issuer may elect. If the Issuer should determine that a
conflict of interest has arisen as to the trusteeship of any of the Obligations,
it may authorize and execute a Supplemental Indenture with one or more successor
Trustees, under which the administration of certain of the Obligations would be
separated from the administration of the other Obligations.

        SECTION 7.22. SURVIVAL OF TRUSTEE'S RIGHTS TO RECEIVE COMPENSATION,
REIMBURSEMENT AND INDEMNIFICATION. The Trustee's rights to receive compensation,
reimbursement and indemnification of money due and owing hereunder at the time
of the Trustee's resignation or removal shall survive the Trustee's resignation
or removal.

        SECTION 7.23. CORPORATE TRUSTEE REQUIRED; ELIGIBILITY; CONFLICTING
INTERESTS. There shall at all times be a Trustee hereunder which shall be
eligible to act as Trustee under Section 310(a)(1) of the Trust Indenture Act
and shall have a combined capital and surplus of at least $50,000,000. If such
corporation publishes reports of condition at least annually, pursuant to law or
the requirements of federal, state, territorial or District of Columbia
supervising or examining authority, then for the purposes of this Section, the
combined capital and surplus of such corporation shall be deemed to be its
combined capital and surplus as set forth in its most recent report of condition
so published. If at any time the Trustee shall cease to be eligible in
accordance with the provisions of this Section, it shall resign immediately in
the manner and with the effect hereinafter specified in this Article. Neither
the Issuer nor any Person directly or indirectly controlling or controlled by,
or under common control with, the Issuer shall serve as Trustee.

        SECTION 7.24. TRUSTEE MAY FILE PROOFS OF CLAIM. In case of the pendency
of any receivership, insolvency, liquidation, bankruptcy, reorganization,
arrangement, adjustment, composition or other judicial proceeding relative to
the Issuer or any other obligor upon the Notes or the property of the Issuer or
of such other obligor or their creditors, the Trustee (irrespective of whether
the principal of the Notes of any Class shall then be due and payable as therein
expressed or by declaration or otherwise and irrespective of whether the Trustee
shall have made any demand on the Issuer for the payment of overdue principal,
premium, if any, or interest) shall be entitled and empowered, by intervention
in such proceeding or otherwise:

                (a) to file and prove a claim for the whole amount, or such
        lesser amount as may be provided for in the Notes, of principal (and
        premium, if any) and interest, if any, owing and unpaid in respect of
        the Notes and to file such other papers or documents as may be necessary
        or advisable in order to have the claims of the Trustee (including any
        claim for the reasonable fees, compensation, expenses, disbursements and
        advances of the Trustee and its agents and counsel) and of the
        Registered Owners allowed in such judicial proceeding; and

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                (b) to collect and receive any money or other property payable
        or deliverable on any such claims and to distribute the same; and any
        custodian, receiver, assignee, trustee, liquidator, sequestrator (or
        other similar official) in any such judicial proceeding is hereby
        authorized by each Registered Owner of Notes to make such payments to
        the Trustee, and if the Trustee shall consent to the making of such
        payments directly to the Registered Owners, to pay to the Trustee any
        amount due to it for the reasonable fees, compensation, expenses,
        disbursements and advances of the Trustee and any predecessor Trustee,
        their agents and counsel, and any other amounts due the Trustee or any
        predecessor Trustee.

        Nothing herein contained shall be deemed to authorize the Trustee to
authorize or consent to or accept or adopt on behalf of any Registered Owner of
a Note any plan of reorganization, arrangement, adjustment or composition
affecting the Notes or the rights of any Registered Owner thereof, or to
authorize the Trustee to vote in respect of the claim of any Registered Owner of
a Note in any such proceeding.

        In any proceedings brought by the Trustee (and also any proceedings
involving the interpretation of any provision of this Indenture to which the
Trustee shall be a party), the Trustee shall be held to represent all the
Registered Owners of the Notes, and it shall not be necessary to make any
Registered Owners of the Notes parties to any such proceedings.

SECTION 7.25. NO PETITION. The Trustee will not at any time institute against
the Issuer any bankruptcy proceeding under any United States federal or state
bankruptcy or similar law in connection with any obligations of the Issuer under
this Indenture.

                                  ARTICLE VIII

                             SUPPLEMENTAL INDENTURES

SECTION 8.01. SUPPLEMENTAL INDENTURES NOT REQUIRING CONSENT OF REGISTERED
OWNERS. The Issuer and the Trustee may, without the consent of or notice to any
of the Registered Owners of any Obligations enter into any indenture or
indentures supplemental to this Indenture for any one or more of the following
purposes:

                (a) to cure any ambiguity or formal defect or omission in this
        Indenture;

                (b) to grant to or confer upon the Trustee for the benefit of
        the Registered Owners any additional benefits, rights, remedies, powers
        or authorities that may lawfully be granted to or conferred upon the
        Registered Owners or the Trustee;

                (c) to subject to this Indenture additional revenues, properties
        or collateral;

                (d) to modify, amend or supplement this Indenture or any
        indenture supplemental hereto in such manner as to permit the
        qualification hereof and thereof under the Trust Indenture Act of 1939
        or any similar federal statute hereafter in effect or to permit the
        qualification of the Notes for sale under the securities laws of the
        United States of America or of any of the states of the United States of
        America, and, if they so determine, to add to this Indenture or any
        indenture supplemental hereto such other terms, conditions and
        provisions as may be permitted by said Trust Indenture Act of 1939 or
        similar federal statute;

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                (e) to evidence the appointment of a separate or co-Trustee or a
        co-registrar or transfer agent or the succession of a new Trustee
        hereunder, or any additional or substitute Guaranty Agency, Master
        Servicer or Subservicer;

                (f) to add such provisions to or to amend such provisions of
        this Indenture as may be necessary or desirable to assure implementation
        of the Program in conformance with the Higher Education Act if along
        with such Supplemental Indenture there is filed an opinion of counsel to
        the effect that the addition or amendment of such provisions will in no
        way impair the existing security of the Registered Owners of any
        Outstanding Obligations;

                (g) to make any change as shall be necessary in order to obtain
        and maintain for any of the Notes an investment grade Rating from a
        nationally recognized rating service, which changes, in the opinion of
        the Trustee will not materially adversely impact the Registered Owner of
        any of the Obligations;

                (h) to make any changes necessary to comply with or obtain more
        favorable treatment under any current or future law, rule or regulation,
        including but not limited to the Higher Education Act, the Regulations
        or the Code and the regulations promulgated thereunder;

                (i) to make the terms and provisions of this Indenture,
        including the lien and security interest granted herein, applicable to a
        Derivative Product, and to modify this Indenture with respect to any
        particular Derivative Product;

                (j) to create any additional Funds or Accounts or Subaccounts
        under this Indenture deemed by the Trustee to be necessary or desirable;

                (k) to make any other change with a Rating Confirmation; or

                (l) to make any other change which, in the judgment of the
        Trustee will not materially adversely impact the Registered Owners of
        any Obligations;

provided, however, that nothing in this Section shall permit, or be construed as
permitting, any modification of the trusts, powers, rights, duties, remedies,
immunities and privileges of the Trustee without the prior written approval of
the Trustee, which approval shall be evidenced by execution of a Supplemental
Indenture.

        SECTION 8.02. SUPPLEMENTAL INDENTURES REQUIRING CONSENT OF REGISTERED
OWNERS. Exclusive of Supplemental Indentures covered by Section 8.01 hereof and
subject to the terms and provisions contained in this Section, and not
otherwise, the Registered Owners of not less than a majority of the collective
aggregate principal amount of the Obligations then Outstanding shall have the
right, from time to time, to consent to and approve the execution by the Issuer
and the Trustee of such other indenture or indentures supplemental hereto as
shall be deemed necessary and desirable by the Trustee for the purpose of
modifying, altering, amending, adding to or rescinding, in any particular, any
of the terms or provisions contained in this Indenture or in any Supplemental

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Indenture; provided, however, that nothing in this Section shall permit, or be
construed as permitting (a) without the consent of the Registered Owners of all
then Outstanding Obligations, (i) an extension of the maturity date of the
principal of or the interest on any Obligation, or (ii) a reduction in the
principal amount of any Obligation or the rate of interest thereon, or (iii) a
privilege or priority of any Obligation or Obligations over any other Obligation
or Obligations except as otherwise provided herein, or (iv) a reduction in the
aggregate principal amount of the Obligations required for consent to such
Supplemental Indenture, or (v) the creation of any lien other than a lien
ratably securing all of the Obligations at any time Outstanding hereunder except
as otherwise provided herein; or (b) any modification of the trusts, powers,
rights, obligations, duties, remedies, immunities and privileges of the Trustee
without the prior written approval of the Trustee.

        If at any time the Issuer shall request the Trustee to enter into any
such Supplemental Indenture for any of the purposes of this Section, the Trustee
shall, upon being satisfactorily indemnified with respect to expenses, cause
notice of the proposed execution of such Supplemental Indenture to be mailed by
registered or certified mail to each Registered Owner of an Obligation at the
address shown on the registration books or listed in any Derivative Product.
Such notice (which shall be prepared by the Issuer) shall briefly set forth the
nature of the proposed Supplemental Indenture and shall state that copies
thereof are on file at the principal corporate trust office of the Trustee for
inspection by all Registered Owners. If, within 60 days, or such longer period
as shall be prescribed by the Issuer, following the mailing of such notice, the
Registered Owners of not less than a majority of the collective aggregate
principal amount of the Obligations Outstanding at the time of the execution of
any such Supplemental Indenture shall have consented in writing to and approved
the execution thereof as herein provided, no Registered Owner of any Obligation
shall have any right to object to any of the terms and provisions contained
therein, or the operation thereof, or in any manner to question the propriety of
the execution thereof, or to enjoin or restrain the Trustee or the Issuer from
executing the same or from taking any action pursuant to the provisions thereof.
Upon the execution of any such Supplemental Indenture as in this Section
permitted and provided, this Indenture shall be and be deemed to be modified and
amended in accordance therewith.

        SECTION 8.03. ADDITIONAL LIMITATION ON MODIFICATION OF INDENTURE. None
of the provisions of this Indenture (including Sections 8.01 and 8.02 hereof)
shall permit an amendment to the provisions of the Indenture which permits the
transfer of all or part of the Financed Eligible Loans originated under the
Higher Education Act or granting of a security interest therein to any Person
other than an Eligible Lender, the Master Servicer or a Subservicer, unless the
Higher Education Act or Regulations are hereafter modified so as to permit the
same. The Trustee may request an opinion of counsel to the effect that an
amendment or supplement to this Indenture was adopted in conformance with this
Indenture.

        SECTION 8.04. CONFORMITY WITH THE TRUST INDENTURE ACT. Every
supplemental indenture executed pursuant to this Article shall conform to the
requirements of the Trust Indenture Act as then in effect.

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                                   ARTICLE IX

                               GENERAL PROVISIONS

        SECTION 9.01. NOTICES. Any notice, request or other instrument required
by this Indenture to be signed or executed by the Registered Owners of
Obligations may be executed by the execution of any number of concurrent
instruments of similar tenor, and may be signed or executed by such Registered
Owners of Obligations in person or by agent appointed in writing. As a condition
for acting thereunder the Trustee may demand proof of the execution of any such
instrument and of the fact that any person claiming to be the owner of any of
said Obligations is such owner and may further require the actual deposit of
such Obligation or Obligations with the Trustee. The fact and date of the
execution of such instrument may be proved by the certificate of any officer in
any jurisdiction who by the laws thereof is authorized to take acknowledgments
of deeds within such jurisdiction, that the person signing such instrument
acknowledged before him the execution thereof, or may be proved by any affidavit
of a witness to such execution sworn to before such officer.

        The amount of Notes held by any person executing such instrument as a
Registered Owner of Notes and the fact, amount and numbers of the Notes held by
such person and the date of his holding the same may be proved by a certificate
executed by any responsible trust company, bank, banker or other depository in a
form approved by the Trustee, showing that at the date therein mentioned such
person had on deposit with such depository the Notes described in such
certificate; provided, however, that at all times the Trustee may require the
actual deposit of such Note or Notes with the Trustee.

        All notices, requests and other communications to any party hereunder
shall be in writing (including bank wire, telex, telecopy, electronic
communication, facsimile or similar writing) at the following addresses, and
each address shall constitute each party's respective "Principal Office" for
purposes of this Indenture:

        If intended for the Issuer:

               Nelnet Student Loan Trust 2008-4
               c/o M&T Trust Company of Delaware, Delaware Trustee
               1220 North Market Street, Suite 202
               Mail Code: MD1-WD22
               Wilmington, DE 19801
               Attention: Rita Marie Ritrovato
               Telephone:  (302) 255-4966
               Facsimile:  (302) 661-2266
               Email:  rritrovato@mtb.com

               With a copy to the Administrator:

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               National Education Loan Network, Inc.
               121 South 13th Street, Suite 201
               Lincoln, NE  68505
               Attention:  Carol Aversman
               Telephone:  (402) 458-2305
               Facsimile:  (402) 458-2399
               Email:  carol.aversman@nelnet.net

        If intended for the Trustee or the Eligible Lender Trustee:

               Zions First National Bank
               717 Seventeenth Street, Suite 301
               Denver, CO  80202
               Attention: Corporate Trust Department
               Telephone:  (720) 947-7475
               Facsimile:  (720) 947-7480

        Any party may change the address to which subsequent notices to such
party are to be sent, or may change the address of its Principal Office, by
notice to the others, delivered by hand or received by telex or facsimile or
registered first-class mail, postage prepaid. Each such notice, request or other
communication shall be effective when delivered by hand or received by facsimile
or registered first-class mail, postage prepaid.

        SECTION 9.02. COVENANTS BIND ISSUER. The covenants, agreements,
conditions, promises, and undertakings in this Indenture shall extend to and be
binding upon the successors and assigns of the Issuer, and all of the covenants
hereof shall bind such successors and assigns, and each of them, jointly and
severally. All the covenants, conditions and provisions hereof shall be held to
be for the sole and exclusive benefit of the parties hereto and their successors
and assigns and of the Registered Owners from time to time of the Obligations.

        No extension of time of payment of any of the Obligations shall operate
to release or discharge the Issuer, it being agreed that the liability of the
Issuer, to the extent permitted by law, shall continue until all of the
Obligations are paid in full, notwithstanding any transfer of Financed Eligible
Loans or extension of time for payment.

        SECTION 9.03. LIEN CREATED. This Indenture shall operate effectually as
(a) a grant of a lien on and security interest in, and (b) an assignment of, the
Trust Estate.

        SECTION 9.04. SEVERABILITY OF LIEN. If the lien of this Indenture shall
be or shall ever become ineffectual, invalid or unenforceable against any part
of the Trust Estate, which is not subject to the lien, because of want of power
or title in the Issuer, the inclusion of any such part shall not in any way
affect or invalidate the pledge and lien hereof against such part of the Trust
Estate as to which the Issuer in fact had the right to pledge.

        SECTION 9.05. CONSENT OF REGISTERED OWNERS BINDS SUCCESSORS. Any request
or consent of a Registered Owner of any Obligations given for any of the
purposes of this Indenture shall bind all future Registered Owners of the same
Obligation or any Obligations issued in exchange therefor or in substitution
thereof in respect of anything done or suffered by the Issuer or the Trustee in
pursuance of such request or consent.

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        SECTION 9.06. NONLIABILITY OF PERSONS; NO GENERAL OBLIGATION. It is
hereby expressly made a condition of this Indenture that any agreements,
covenants or representations herein contained or contained in the Notes do not
and shall never constitute or give rise to a personal or pecuniary liability or
charge against the organizers, officers, employees, agents or trustees or the
Administrator of the Issuer, or against the general credit of the Issuer, and in
the event of a breach of any such agreement, covenant or representation, no
personal or pecuniary liability or charge payable directly or indirectly from
the general revenues of the Issuer shall arise therefrom. Nothing contained in
this Section, however, shall relieve the Issuer from the observance and
performance of the several covenants and agreements on its part herein
contained.

        SECTION 9.07. NONPRESENTMENT OF NOTES OR INTEREST CHECKS. Should any of
the Notes or interest checks not be presented for payment when due, the Trustee
shall retain from any money transferred to it for the purpose of paying the
Notes or interest checks so due, for the benefit of the Registered Owners
thereof, a sum of money sufficient to pay such Notes or interest checks when the
same are presented by the Registered Owners thereof for payment. Such money
shall not be required to be invested. All liability of the Issuer to the
Registered Owners of such Notes or interest checks and all rights of such
Registered Owners against the Issuer under the Notes or interest checks or under
this Indenture shall thereupon cease and determine, and the sole right of such
Registered Owners shall thereafter be against such deposit. If any Note or
interest check shall not be presented for payment within the period of two years
following its payment or prepayment date, the Trustee shall return to the Issuer
the money theretofore held by it for payment of such Note or interest check, and
such Note or interest check shall (subject to the defense of any applicable
statute of limitation) thereafter be an unsecured obligation of the Issuer. The
Trustee's responsibility for any such money shall cease upon remittance thereof
to the Issuer.

        SECTION 9.08. SECURITY AGREEMENT. This Indenture constitutes a Financing
Statement and a Security Agreement under the Delaware Uniform Commercial Code
and the Utah Uniform Commercial Code.

        SECTION 9.09. LAWS GOVERNING. It is the intent of the parties hereto
that this Indenture shall in all respects be governed by the laws of the State
of New York. This Indenture is subject to the provisions of the Trust Indenture
Act that are required to be part of this Indenture and shall, to the extent
applicable, be governed by such provisions.

        SECTION 9.10. SEVERABILITY. If any covenant, agreement, waiver, or part
thereof contained in this Indenture shall be forbidden by any pertinent law or
under any pertinent law be effective to render this Indenture invalid or
unenforceable or to impair the lien hereof, then each such covenant, agreement,
waiver, or part thereof shall itself be and is hereby declared to be wholly
ineffective, and this Indenture shall be construed as if the same were not
included herein.

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        SECTION 9.11. EXHIBITS. The terms of the Schedules and Exhibits, if any,
attached to this Indenture are incorporated herein in all particulars.

        SECTION 9.12. NON-BUSINESS DAYS. Except as may otherwise be provided
herein, if the date for making payment of any amount hereunder or on any Note,
or if the date for taking any action hereunder, is not a Business Day, then such
payment can be made without accruing further interest or action can be taken on
the next succeeding Business Day, with the same force and effect as if such
payment were made when due or action taken on such required date.

        SECTION 9.13. PARTIES INTERESTED HEREIN. Nothing in this Indenture
expressed or implied is intended or shall be construed to confer upon, or to
give to, any person or entity, other than the Trustee, the Delaware Trustee, the
paying agent, if any, and the Registered Owners of the Obligations, any right,
remedy or claim under or by reason of this Indenture or any covenant, condition
or stipulation hereof, and all covenants, stipulations, promises and agreements
in this Indenture contained by and on behalf of the Issuer shall be for the sole
and exclusive benefit of the Trustee, the paying agent, if any, and the
Registered Owners of the Obligations.

        SECTION 9.14. OBLIGATIONS ARE LIMITED OBLIGATIONS. The Notes and the
obligations of the Issuer contained in this Indenture are special, limited
obligations of the Issuer, secured by and payable solely from the Trust Estate
herein provided. The Issuer shall not be obligated to pay the Notes, the
interest thereon, or any other obligation created by or arising from this
Indenture from any other source.

        SECTION 9.15. LIMITATIONS ON COUNTERPARTY RIGHTS. No Counterparty which
shall be in default under any Derivative Product with the Issuer shall have any
of the rights granted to a Counterparty or as the Registered Owner of an
Obligation hereunder. A Counterparty which is in default under any Derivative
Product shall, however, continue to maintain all obligations undertaken by it
under the terms of its Derivative Product. No Counterparty shall have any
consent or voting rights under this Indenture or any rights to instruct the
Trustee to take, or refrain from taking, any action hereunder except upon
satisfaction of a Rating Confirmation.

        SECTION 9.16. DISCLOSURE OF NAMES AND ADDRESSES OF REGISTERED OWNERS.

                (a) Registered Owners may communicate pursuant to Section 312(b)
        of the Trust Indenture Act with other Registered Owners with respect to
        their rights under this Indenture or under the Notes. Upon receipt by
        the Trustee of any request by three or more Registered Owners or by one
        or more holders of Notes evidencing not less than 25% of the Outstanding
        Amount of the Notes to receive a copy of the current list of Registered
        Owners (whether or not made pursuant to Section 312(b) of the Trust
        Indenture Act), the Trustee shall promptly notify the Issuer thereof by
        providing to the Issuer a copy of such request and a copy of the list of
        Registered Owners produced in response thereto.

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                (b) Registered Owners of Notes, by receiving and holding the
        same, agree with the Issuer and the Trustee that neither the Issuer nor
        the Trustee nor any Clearing Agency shall be held accountable by reason
        of the disclosure of any information as to the names and addresses of
        the Registered Owners of Notes in accordance with Section 312 of the
        Trust Indenture Act, regardless of the source from which such
        information was derived, and that the Trustee shall not be held
        accountable by reason of mailing any material pursuant to a request made
        under Section 312(b) of the Trust Indenture Act.

        SECTION 9.17. AGGREGATE PRINCIPAL AMOUNT OF OBLIGATIONS. Whenever in
this Indenture reference is made to the aggregate principal amount of any
Obligations, such phrase shall mean, at any time, the principal amount of any
Notes and the Derivative Value of any Derivative Product.

        SECTION 9.18. FINANCED ELIGIBLE LOANS. The Issuer expects to acquire
Eligible Loans and to transfer Eligible Loans to the Trustee, in accordance with
this Indenture, which Eligible Loans, upon becoming subject to the lien of this
Indenture, constitute Financed Eligible Loans, as defined herein. If for any
reason a Financed Eligible Loan does not constitute an Eligible Loan, or ceases
to constitute an Eligible Loan, such loan shall continue to be subject to the
lien of this Indenture as a Financed Eligible Loan.

        SECTION 9.19. CONCERNING THE DELAWARE TRUSTEE. It is expressly
understood and agreed by the parties to this Indenture and the Registered Owners
that (a) this Indenture is executed and delivered by the Delaware Trustee not in
its individual or personal capacity but solely in its capacity as Delaware
Trustee under the Trust Agreement on behalf of the Issuer, in the exercise of
the powers and authority conferred and vested in it as Delaware Trustee under
the Trust Agreement, subject to the protections, indemnities and limitations
from liability afforded to the Delaware Trustee thereunder; (b) the
representations, warranties, covenants, undertakings, agreements and obligations
by the Delaware Trustee are made and intended not as personal representations,
warranties, covenants, undertakings, agreements and obligations by M&T Trust
Company of Delaware, but are made and intended for the purpose of only binding
the Trust Estate, as defined in the Trust Agreement, and the Issuer; (c) nothing
contained herein shall be construed as creating any liability on M&T Trust
Company of Delaware, individually or personally, to perform any expressed or
implied covenant, duty or obligation of any kind whatsoever contained herein;
and (d) under no circumstances shall M&T Trust Company of Delaware, be
personally liable for the payment of any fees, costs, indebtedness or expenses
of any kind whatsoever or be personally liable for the breach or failure of any
obligation, representation, agreement, warranty or covenant whatsoever made or
undertaken by the Delaware Trustee or Issuer hereunder.

                                   ARTICLE X

                        PAYMENT AND CANCELLATION OF NOTES
                          AND SATISFACTION OF INDENTURE

        SECTION 10.01. TRUST IRREVOCABLE. The trust created by the terms and
provisions of this Indenture is irrevocable until the indebtedness secured
hereby (the Notes and interest thereon) and all Issuer Derivative Payments are
fully paid or provision is made for its payment as provided in this Article.

                                       79
<PAGE>

        SECTION 10.02. SATISFACTION OF INDENTURE.

                (a) If the Issuer shall pay, or cause to be paid, or there shall
        otherwise be paid (i) to the Registered Owners of the Notes, the
        principal of and interest on the Notes, at the times and in the manner
        stipulated in this Indenture; (ii) to each Counterparty, all Issuer
        Derivative Payments then due, then the pledge of the Trust Estate, and
        all covenants, agreements and other obligations of the Issuer to the
        Registered Owners of Notes and (iii) all other obligations due and
        outstanding shall thereupon cease, terminate and become void and be
        discharged and satisfied. In such event, the Trustee shall execute and
        deliver to the Issuer all such instruments as may be desirable to
        evidence such discharge and satisfaction, and the Trustee shall pay over
        or deliver all money held by it under this Indenture to the party
        entitled to receive the same under this Indenture. If the Issuer shall
        pay or cause to be paid, or there shall otherwise be paid, to the
        Registered Owners of any Outstanding Notes the principal of and interest
        on such Notes and to each Counterparty all Issuer Derivative Payments
        then due, at the times and in the manner stipulated in this Indenture
        and in the respective Derivative Product, such Notes and each
        Counterparty shall cease to be entitled to any lien, benefit or security
        under this Indenture, and all covenants, agreements and obligations of
        the Issuer to the Registered Owners thereof and each Counterparty shall
        thereupon cease, terminate and become void and be discharged and
        satisfied.

                (b) Notes or interest installments shall be deemed to have been
        paid within the meaning of Section 10.02(a) hereof if money for the
        payment thereof has been set aside and is being held in trust by the
        Trustee at the Note Final Maturity Date or earlier prepayment date
        thereof. Any Outstanding Note shall, prior to the Note Final Maturity
        Date or earlier prepayment thereof, be deemed to have been paid within
        the meaning and with the effect expressed in Section 10.02(a) hereof if
        (i) such Note is to be prepaid on any date prior to its Note Final
        Maturity Date and (ii) the Issuer shall have given notice of prepayment
        as provided herein on said date, there shall have been deposited with
        the Trustee either money (fully insured by the Federal Deposit Insurance
        Corporation or fully collateralized by Governmental Obligations) in an
        amount which shall be sufficient, or Governmental Obligations (including
        any Governmental Obligations issued or held in book-entry form on the
        books of the Department of Treasury of the United States of America) the
        principal of and the interest on which when due will provide money
        which, together with the money, if any, deposited with the Trustee at
        the same time, shall be sufficient, to pay when due the principal of and
        interest to become due on such Note on and prior to the prepayment date
        or Note Final Maturity Date thereof, and all other obligations due and
        outstanding, as the case may be. If moneys and/or Governmental
        Obligations are deposited with and held by the Trustee as provided in
        this subsection (b), such moneys and/or Governmental Obligations shall
        be accompanied by a report of a nationally recognized independent
        certified public accountant firm or other financial services firm

                                       80
<PAGE>

        verifying that the amount of such moneys and/or Governmental Obligations
        deposited will be sufficient, together with interest to accrue thereon,
        to pay all the Notes at or before their Maturity. Notwithstanding
        anything herein to the contrary, however, no such deposit shall have the
        effect specified in this subsection (b) if made during the existence of
        an Event of Default, unless made with respect to all of the Notes then
        Outstanding. Neither Governmental Obligations nor money deposited with
        the Trustee pursuant to this subsection (b) nor principal or interest
        payments on any such Governmental Obligations shall be withdrawn or used
        for any purpose other than, and shall be held irrevocably in trust in an
        escrow account for, the payment of the principal of and interest on such
        Notes. Any cash received from such principal of and interest on such
        Governmental Obligations deposited with the Trustee, if not needed for
        such purpose, shall, to the extent practicable, be reinvested in
        Governmental Obligations maturing at times and in amounts sufficient to
        pay when due the principal of and interest on such Notes and all other
        obligations due and outstanding on and prior to such prepayment date or
        Note Final Maturity Date thereof, as the case may be, and interest
        earned from such reinvestments shall be paid over to the Issuer, as
        received by the Trustee, free and clear of any trust, lien or pledge.
        Any payment for Governmental Obligations purchased for the purpose of
        reinvesting cash as aforesaid shall be made only against delivery of
        such Governmental Obligations. For the purposes of this Section,
        "Governmental Obligations" shall mean and include only non-callable
        direct obligations of the Department of the Treasury of the United
        States of America or portions thereof (including interest or principal
        portions thereof), and such Governmental Obligations shall be of such
        amounts, maturities and interest payment dates and bear such interest as
        will, without further investment or reinvestment of either the principal
        amount thereof or the interest earnings therefrom, be sufficient to make
        the payments required herein, and which obligations have been deposited
        in an escrow account which is irrevocably pledged as security for the
        Notes. Such term shall not include mutual funds and unit investment
        trusts.

                (c) Any Issuer Derivative Payments are deemed to have been paid
        and the applicable Derivative Product terminated when payment of all
        Issuer Derivative Payments due and payable to each Counterparty under
        its respective Derivative Product have been made or duly provided for to
        the satisfaction of each Counterparty, and the respective Derivative
        Product has been terminated.

                (d) In no event shall the Trustee deliver over to the Issuer any
        Financed Eligible Loans originated under the Higher Education Act unless
        the Issuer is an Eligible Lender, if the Higher Education Act or
        Regulations then in effect require the owner or holder of such Financed
        Eligible Loans to be an Eligible Lender.

                (e) The provisions of this Section are applicable to the Notes
        and the Issuer Derivative Payments.

        SECTION 10.03. OPTIONAL PURCHASE OF ALL FINANCED ELIGIBLE LOANS. The
Administrator shall certify to and notify the Depositor, or any assignee of its
rights hereunder, and the Trustee in writing, within 15 days after the last
Business Day of each Collection Period in which the then outstanding Pool
Balance is 12% or less of the Initial Pool Balance, of the percentage that the
then outstanding Pool Balance bears to the Initial Pool Balance. The Depositor
or its assignee shall have the option to purchase all of the Financed Eligible

                                       81
<PAGE>

Loans on the earlier of (a) the October 2018 Quarterly Distribution Date and (b)
the date that is the tenth (10th) Business Day preceding the Quarterly
Distribution Date next succeeding the last day of the Collection Period on which
the then outstanding Pool Balance is 10% or less of the Initial Pool Balance
(each, an "Optional Purchase Date"). To exercise the option described in this
Section, the Depositor or its assignee shall deposit in the Collection Fund on
the Optional Purchase Date, an amount equal to the aggregate Purchase Amount for
the Financed Eligible Loans as of the last Business Day of the preceding
Collection Period and the related rights with respect thereto, plus the
appraised value of any such other property held in the Trust Estate other than
the Funds and Accounts, such value to be determined by an appraiser mutually
agreed upon by the Depositor or its assignee and the Trustee; provided, however,
that the Depositor or its assignee may not effect such purchase if such
aggregate Purchase Amount and the appraised value of such other property do not
equal or exceed the Minimum Purchase Amount, less any amounts on deposit in the
Funds and Accounts.

        SECTION 10.04. AUCTION OF FINANCED ELIGIBLE LOANS. If the Depositor, or
any assignee of its rights under Section 10.03 hereof, does not exercise its
option to purchase Financed Eligible Loans pursuant to Section 10.03 hereof, the
Trustee (or its designated agent) shall, promptly after the Business Day next
succeeding the Optional Purchase Date, offer for sale Financed Eligible Loans in
an amount sufficient to redeem all Notes Outstanding on such Quarterly
Distribution Date, and any such sale shall be consummated on or before such
Quarterly Distribution Date (the "Trust Auction Date"). Nelnet, Inc. or its
Affiliates and unrelated third parties may bid to purchase the Financed Eligible
Loans. The Trustee shall provide written notice to the Depositor of any such
offer for sale at least three Business Days in advance of the Trust Auction
Date. If at least two independent bids are received, the Trustee (or its
designated agent) shall solicit and resolicit new bids from all participating
bidders until only one bid remains or the remaining bidders decline to resubmit
bids. The Trustee shall accept the highest of the remaining bids if it is equal
to or in excess of both (i) the Minimum Purchase Amount, less any amounts on
deposit in the Funds and Accounts and (ii) the fair market value of such
Financed Eligible Loans as of the end of the Collection Period immediately
preceding the Trust Auction Date. If at least two bids are not received or the
highest bid after the resolicitation process is completed is not equal to or in
excess of the higher of the amounts described in the preceding sentences, the
Trustee shall not consummate such sale. The Trustee may consult, and, at the
direction of the Depositor, shall consult, with a financial advisor, including
an underwriter of the Notes or the Administrator, to determine if the fair
market value of the Financed Eligible Loans has been offered. The proceeds of
any such sale shall be deposited to the Collection Fund and applied to the
redemption of all Notes Outstanding in accordance with Section 5.04(d) hereof.
Unless requested by the Administrator, if the sale is not completed, the Trustee
may, but will not be obligated to, solicit bids for sale of the Financed
Eligible Loans with respect to future Quarterly Distribution Dates upon terms
similar to those described above. The Trustee shall be obligated to make such
solicitations, however, if requested to do so by the Administrator. Notice of
the prepayment of any Obligations resulting from a purchase of the Financed
Eligible Loans on the Optional Purchase Date or the auction of the Financed
Eligible Loans on the Trust Auction Date, shall be given by the Trustee to the
Registered Owners by first-class mail within five Business Days of such Optional
Purchase Date or Trust Auction Date.

        SECTION 10.05. CANCELLATION OF PAID NOTES. Any Notes which have been
paid or purchased by the Issuer, mutilated Notes replaced by new Notes, and any
temporary Note for which definitive Notes have been delivered shall (unless
otherwise directed by the Issuer by Issuer Order) forthwith be cancelled by the
Trustee and, except for temporary Notes, returned to the Issuer.

                                       82
<PAGE>

        IN WITNESS WHEREOF, the Issuer has caused this Indenture to be executed
in its organizational name and behalf by its Delaware Trustee, and the Trustee,
to evidence its acceptance of the trusts hereby created, has caused this
Indenture to be executed in its organizational name and behalf, all in multiple
counterparts, each of which shall be deemed an original, and the Issuer and the
Trustee have caused this Indenture to be dated as of the date herein above first
shown.

                                  NELNET STUDENT LOAN TRUST 2008-4,
                                  a Delaware statutory trust

                                  By: M&T TRUST COMPANY OF DELAWARE, not in its
                                      individual capacity or personal capacity
                                      but solely in its capacity as Delaware
                                      Trustee

                                  By  /s/ Rita Marie Ritrovato
                                     -------------------------------------------
                                  Name:   Rita Marie Ritrovato
                                         ---------------------------------------
                                  Title:  Assistant Vice President
                                          --------------------------------------

                                  ZIONS FIRST NATIONAL BANK, as Trustee

                                  By  /s/  David W. Bata,
                                     -------------------------------------------
                                      David W. Bata, Vice President

                                  Acknowledged and accepted as to
                                  clauses "C" and "D" of the
                                  Granting Clauses as of the day
                                  and year first written above:

                                  ZIONS FIRST NATIONAL BANK, as Eligible Lender
                                  Trustee

                                  By /s/  David W. Bata,
                                     -------------------------------------------
                                      David W. Bata, Vice President

<PAGE>

                                    EXHIBIT A

                      ELIGIBLE LOAN ACQUISITION CERTIFICATE

        This Eligible Loan Acquisition Certificate is submitted pursuant to the
provisions of Section 5.02 of the Indenture of Trust, dated as of May 1, 2008,
as amended (the "Indenture"), between Nelnet Student Loan Trust 2008-4 (the
"Issuer") and Zions First National Bank, as Trustee. All capitalized terms used
in this Certificate and not otherwise defined herein shall have the same
meanings given to such terms in the Indenture. In your capacity as Trustee, you
are hereby authorized and requested to disburse to _________________ (the
"Seller") the sum of $__________ for the acquisition of Eligible Loans. With
respect to the Eligible Loans so to be acquired, the Issuer hereby certifies as
follows:

        1. The Eligible Loans to be acquired are those specified in Schedule A
attached hereto (the "Acquired Eligible Loans"). The remaining unpaid principal
amount of each Acquired Eligible Loan is as shown on such Schedule A.

        2. The amount to be disbursed pursuant to this Certificate does not
exceed the amount permitted by Section 5.02 of the Indenture, plus accrued
interest.

        3. Each Acquired Eligible Loan is an Eligible Loan authorized so to be
acquired by the Indenture.

        4. The following items have been received and are being retained, on
your behalf, by the Issuer, the Master Servicer or a Subservicer:

               (a) a copy of the Student Loan Purchase Agreement(s) between the
        Issuer and the Eligible Lender with respect to the Acquired Eligible
        Loans (original copy maintained on file with the Issuer on behalf of the
        Trustee);

               (b) with respect to each Insured Loan included among the Acquired
        Eligible Loans, the Certificate of Insurance relating thereto;

               (c) with respect to each Guaranteed Loan included among the
        Acquired Eligible Loans, a certified copy of the Guarantee Agreement
        relating thereto;

               (d) an opinion of counsel to the Issuer specifying each action
        necessary to perfect a security interest in all Eligible Loans to be
        acquired by the Issuer pursuant to the Student Loan Purchase Agreements
        in favor of the Trustee in the manner provided for by the provisions of
        20 U.S.C. ss. 1087-2(d)(3) or 20 U.S.C. ss. 1082(m)(1)(E), as
        applicable, (you are authorized to rely on the advice of a single
        blanket opinion of counsel to the Issuer until such time as the Issuer
        shall provide any amended opinion to you); and

               (e) instruments duly assigning the Acquired Eligible Loans to the
        Trustee.

<PAGE>

        5. The Issuer is not, on the date hereof, in default under the Indenture
or in the performance of any of its covenants and agreements made in the Student
Loan Purchase Agreement(s) relating to the Acquired Eligible Loans, and, to the
best knowledge of the Issuer, the Eligible Lender is not in default under the
Student Loan Purchase Agreement applicable to the Acquired Eligible Loans. The
Issuer is not aware of any default existing on the date hereof under any of the
other documents referred to in paragraph 4 hereof, nor of any circumstances
which would reasonably prevent reliance upon the opinion of counsel referred to
in paragraph 4(d) hereof.

        6. All of the conditions specified in the Student Loan Purchase
Agreement(s) applicable to the Acquired Eligible Loans and the Indenture for the
acquisition of the Acquired Eligible Loans and the disbursement hereby
authorized and requested have been satisfied; provided that the Issuer may waive
the requirement of receiving an opinion of counsel from the counsel to the
Lender.

        7. With respect to all Acquired Eligible Loans which are Insured,
Insurance is in effect with respect thereto, and with respect to all Acquired
Eligible Loans which are Guaranteed, the Guarantee Agreement is in effect with
respect thereto.

        8. The Issuer is not in default in the performance of any of its
covenants and agreements made in any Contract of Insurance or the Guarantee
Agreement applicable to the Acquired Eligible Loans.

        9. The proposed use of moneys in the Acquisition Fund is in compliance
with the provisions of the Indenture.

        10. The undersigned is authorized to sign and submit this Certificate on
behalf of the Issuer.

        11. Eligible Loans are being acquired at a price which permits the
results of the cash flow analyses provided to the Rating Agencies on the Date of
Issuance and as revised/amended to be sustained.

        WITNESS my hand this _____ day of ___________.

                                         NELNET STUDENT LOAN TRUST 2008-4

                                         By
                                            ------------------------------------
                                         Name
                                              ----------------------------------
                                         Title
                                               ---------------------------------

                                      A-2

<PAGE>

                                   EXHIBIT B-1

                             FORM OF CLASS A-1 NOTE

        Unless this Note is presented by an authorized representative of The
Depository Trust Company, a New York corporation ("DTC"), to the Issuer (as
defined below) or its agent for registration of transfer, exchange or payment,
and any Note issued is registered in the name of Cede & Co. or in such other
name as is requested by an authorized representative of DTC (and any payment is
made to Cede & Co. or to such other entity as is requested by an authorized
representative of DTC), ANY TRANSFER, PLEDGE OR OTHER USE HEREOF FOR VALUE OR
OTHERWISE BY OR TO ANY PERSON IS WRONGFUL inasmuch as the registered owner
hereof, Cede & Co., has an interest herein.

        THE PRINCIPAL OF THIS NOTE IS PAYABLE AS SET FORTH HEREIN. ACCORDINGLY,
THE OUTSTANDING PRINCIPAL AMOUNT OF THIS NOTE AT ANY TIME MAY BE LESS THAN THE
AMOUNT SHOWN ON THE FACE HEREOF. THIS NOTE IS NOT GUARANTEED OR INSURED BY ANY
GOVERNMENTAL AGENCY.

                        NELNET STUDENT LOAN TRUST 2008-4
                         STUDENT LOAN ASSET-BACKED NOTES
                            SENIOR CLASS A-1 (LIBOR)

REGISTERED NO. R-__                                       REGISTERED $__________

   DATE OF ISSUANCE        MATURITY DATE          CUSIP NO.          ISIN NO.
     May 20, 2008       April 2015 Quarterly      64032J AA4       US64032JAA43
                         Distribution Date

PRINCIPAL SUM:        **______________________ DOLLARS**
REGISTERED OWNER:     **____________________**

        Nelnet Student Loan Trust 2008-4, a statutory trust organized and
existing under the laws of the State of Delaware (herein referred to as the
"Issuer"), for value received, hereby promises to pay to the Registered Owner,
or registered assigns, on each Quarterly Distribution Date the principal sum
equal to the portion of the Principal Distribution Amount allocable to this Note
for such Quarterly Distribution Date, as described in the Indenture of Trust,
dated as of May 1, 2008, between the Issuer (by M&T Trust Company of Delaware,
in its capacity as Delaware Trustee) and Zions First National Bank, a national
banking association, as eligible lender trustee and indenture trustee (the
"Trustee") (capitalized terms used but not defined herein being defined in
Article I of the Indenture, which also contains rules as to usage that shall be
applicable herein); provided, however, that the entire unpaid principal amount
of this Note shall be due and payable on the Maturity Date specified above (the
"Class A-1 Maturity Date").

<PAGE>

        The Issuer shall pay interest on this Note at the rate per annum equal
to the Class A-1 Rate (as defined herein), on each Quarterly Distribution Date
until the principal of this Note is paid or made available for payment, on the
principal amount of this Note outstanding on the preceding Quarterly
Distribution Date or the Date of Issuance in the case of the first Quarterly
Distribution Date (after giving effect to all payments of principal made on the
preceding Quarterly Distribution Date), subject to certain limitations contained
in the Indenture. Interest on this Note shall accrue from and including the
preceding Quarterly Distribution Date (or, in the case of the first Interest
Accrual Period, the Date of Issuance) to but excluding the following Quarterly
Distribution Date (each an "Interest Accrual Period"). Interest shall be
calculated on the basis of the actual number of days elapsed in each Interest
Accrual Period divided by 360 and rounding the resultant figure to the fifth
decimal point. Such principal of and interest on this Note shall be paid in the
manner specified on the reverse hereof.

        The principal of and interest on this Note are payable in such coin or
currency of the United States of America as at the time of payment is legal
tender for payment of public and private debts. All payments made by the Issuer
with respect to this Note shall be applied first to interest due and payable on
this Note as provided above and then to the unpaid principal of this Note.

        Reference is made to the further provisions of this Note set forth on
the reverse hereof, which shall have the same effect as though fully set forth
on the face of this Note.

        Unless the certificate of authentication hereon has been executed by the
Trustee whose name appears below by manual signature, this Note shall not be
entitled to any benefit under the Indenture referred to on the reverse hereof,
or be valid or obligatory for any purpose.

                                      B-1-2
<PAGE>

        IN WITNESS WHEREOF, the Issuer has caused this instrument to be duly
executed, manually or in facsimile, as of the date set forth below.

                                      NELNET STUDENT LOAN TRUST 2008-4

                                      By  M&T TRUST COMPANY OF
                                          DELAWARE, not in its
                                          individual capacity but
                                          solely as Delaware Trustee
                                          under the Trust Agreement,

                                      By
                                         ---------------------------------------
                                          Authorized Signatory

Date: __________ __, ____

                     TRUSTEE'S CERTIFICATE OF AUTHENTICATION

        This is one of the Notes designated above and referred to in the
within-mentioned Indenture.

                                      ZIONS FIRST NATIONAL BANK, not in its
                                      individual capacity but solely as Trustee,

                                      By
                                         ---------------------------------------
                                          Authorized Signatory

Date: __________ __, ____

                                     B-1-3
<PAGE>

        This Note is one of a duly authorized issue of Notes of the Issuer,
designated as its Student Loan Asset-Backed Notes, Senior Class A-1 (the "Class
A-1 Notes"), which, together with the Issuer's Student Loan Asset-Backed Notes,
Senior Class A-2, Class A-3 and Class A-4 (together with the Class A-1 Notes,
the "Class A Notes") and the Issuer's Student Loan Asset-Backed Notes,
Subordinate Class B (the "Class B Notes" and, together with the Class A Notes,
the "Notes"), are issued under and secured by the Indenture, to which Indenture
and all indentures supplemental thereto reference is hereby made for a statement
of the respective rights and obligations thereunder of the Issuer, the Trustee
and the Registered Owners. The Notes are subject to all terms of the Indenture.

        The Indenture provides that the Issuer may enter into a derivative
product (a "Derivative Product") between the Issuer and a derivative provider (a
"Counterparty"), as originally executed and as amended or supplemented, or other
interest rate hedge agreement between the Issuer and a Counterparty, as
originally executed and as amended or supplemented. Payments due to a
Counterparty from the Issuer pursuant to the applicable Derivative Product are
referred to herein as "Issuer Derivative Payments," and may be paid on a parity
with interest on any class of the Notes.

        The Class A-1 Notes are and will be secured by the Trust Estate pledged
as security therefor as provided in the Indenture. The Class A Notes are senior
to the Class B Notes as and to the extent provided in the Indenture. The Class A
Notes are, except for certain Termination Payments that are not Priority
Termination Payments, issued on a parity with any Derivative Products entered
into by the Issuer with a Counterparty, pursuant to which the Issuer will, from
time to time, owe Issuer Derivative Payments, and will, from time to time, be
owed Counterparty Payments.

        Principal of the Class A-1 Notes shall be payable on each Quarterly
Distribution Date in an amount equal to the portion of the Principal
Distribution Amount allocable to this Note for such Quarterly Distribution Date.
"Quarterly Distribution Date" means the twenty-fifth (25th) day of each January,
April, July and October, if any such date is not a Business Day, the immediately
succeeding Business Day, commencing July 25, 2008.

        As described on the face hereof, the entire unpaid principal amount of
this Note shall be due and payable on the Class A-1 Maturity Date.
Notwithstanding the foregoing, the entire unpaid principal amount of the Notes
shall be due and payable on the date on which (a) an Event of Default shall have
occurred and be continuing and (b) either the Trustee or the Registered Owners
of Obligations representing not less than a majority of the Outstanding Amount
of the Highest Priority Obligations shall have declared the Notes to be
immediately due and payable in the manner provided in the Indenture.

                                     B-1-4
<PAGE>

        The Notes are subject to redemption from the proceeds of a sale of
Financed Eligible Loans in accordance with Section 10.03 or 10.04 of the
Indenture on any Quarterly Distribution Date on or after (a) the October 2018
Quarterly Distribution Date and (b) the Quarterly Distribution Date next
succeeding the date on which the then outstanding Pool Balance is 10% or less of
the Initial Pool Balance (all as defined in the Indenture), in whole only, at a
redemption price equal to the principal amount thereof being redeemed, plus
accrued interest, if any, due and payable on the Notes to such Quarterly
Distribution Date.

        Interest on the Class A-1 Notes shall be payable on each Quarterly
Distribution Date on the principal amount outstanding of the Class A-1 Notes
until the principal amount thereof is paid in full, at a rate per annum equal to
the Class A-1 Rate. The "Class A-1 Rate" for each Interest Accrual Period, other
than the first Interest Accrual Period, shall be equal to the applicable
Three-Month LIBOR, plus 0.53%. The "Class A-1 Rate" for the first Interest
Accrual Period shall be determined by reference to the following formula:

        x + [4/30* (y-x)] plus 0.53%, as determined by the Administrator.

        where:

        x = Two-Month LIBOR, and

        y = Three-Month LIBOR.

        Payments of interest on this Note on each Quarterly Distribution Date,
together with the installment of principal, if any, to the extent not in full
payment of this Note, shall be paid to the Person in whose name such Note is
registered on the Record Date by check mailed first-class, postage prepaid to
such Person's address as it appears on the records of the Trustee on such Record
Date, except that, unless definitive Notes have been issued pursuant to the
Indenture, with respect to Notes registered on the Record Date in the name of
the nominee of the Clearing Agency (initially, such nominee to be Cede & Co.),
payment shall be made by wire transfer in immediately available funds to the
account designated by such nominee. If funds are expected to be available, as
provided in the Indenture, for payment in full of the then remaining unpaid
principal amount of this Note on a Quarterly Distribution Date, then the Trustee
shall notify the Person in whose name a Note is registered at the close of
business on the Record Date preceding the Quarterly Distribution Date on which
the Issuer expects that the final installment of principal of and interest on
such Note will be paid. Such notice shall be mailed or transmitted by facsimile
prior to such final Quarterly Distribution Date and shall specify that such
final installment will be payable only upon presentation and surrender of such
Note and shall specify the place where such Note may be presented and
surrendered for payment of such installment.

        As provided in the Indenture and subject to certain limitations set
forth therein, the transfer of this Note may be registered upon the records of
the Trustee upon surrender for transfer of any Note at the Principal Office of
the Trustee, duly endorsed for transfer or accompanied by an assignment duly
executed by the Registered Owner or his attorney duly authorized in writing, and
thereupon the Issuer shall execute and the Trustee shall authenticate and
deliver in the name of the transferee or transferees a new fully registered Note
or Notes of the same interest rate and for a like Class and aggregate principal
amount of the same maturity.

        As to any Note, the person in whose name the same shall be registered
shall be deemed and regarded as the absolute owner thereof for all purposes, and
payment of either principal or interest on any fully registered Note shall be
made only to or upon the written order of the Registered Owner thereof or his
legal representative but such registration may be changed as provided in the
Indenture. All such payments shall be valid and effectual to satisfy and
discharge the liability upon such Note to the extent of the sum or sums paid.

                                     B-1-5
<PAGE>

        Each Registered Owner and each transferee of a Note shall be deemed to
represent and warrant that either (a) it is not acquiring the Note directly or
indirectly for, or on behalf of, an ERISA plan or any entity whose underlying
assets are deemed to be plan assets of such ERISA plan; or (b)(i) the
acquisition and holding of the Notes will not result in a nonexempt prohibited
transaction under Section 406 of ERISA or Section 4975 of the Code or similar
law and (ii) if the Notes are subsequently deemed to be "plan assets" pursuant
to the regulations set forth at 29 C.F.R. ss. 2510.3-101, it will promptly
dispose of the Notes.

        The Trustee shall require the payment by any Registered Owner requesting
exchange or transfer of any tax or other governmental charge required to be paid
with respect to such exchange or transfer. The applicant for any such transfer
or exchange may be required to pay all taxes and governmental charges in
connection with such transfer or exchange, other than exchanges pursuant to the
Indenture.

        The term "Issuer" as used in this Note includes any successor to the
Issuer under the Indenture.

        The Issuer is permitted by the Indenture, under certain circumstances,
to merge or consolidate, subject to the rights of the Trustee and the Registered
Owners under the Indenture.

        The Notes are issuable only in registered form in denominations as
provided in the Indenture, subject to certain limitations therein set forth.

        This Note shall be construed in accordance with the laws of the State of
New York, without reference to its conflict of law provisions, and the
obligations, rights and remedies of the parties hereunder and thereunder shall
be determined in accordance with such laws.

        No reference herein to the Indenture and no provision of this Note or of
the Indenture shall alter or impair the obligation of the Issuer, which is
absolute and unconditional, to pay the principal of and interest on this Note at
the times, place and rate, and in the coin or currency, herein prescribed.

                                     B-1-6
<PAGE>

                                   ASSIGNMENT

Social Security or taxpayer I.D. or other identifying number of assignee

_______________________________________________________________________________

    FOR VALUE RECEIVED, the undersigned hereby sells, assigns and transfers unto

_______________________________________________________________________________
                         (name and address of assignee)
the within Note and all rights thereunder, and hereby irrevocably constitutes
and appoints___________________________________________________________________
attorney, to transfer said Note on the books kept for registration thereof, with
full power of substitution in the premises.

Dated:
       -----------------------------

                                      By                                       *
                                         --------------------------------------
                                      Name
                                           -------------------------------------
                                      Title
                                            ------------------------------------

                                      Signature Guaranteed:

                                      By * *NOTICE: Signature(s) should
                                      be guaranteed by a guarantor
                                      institution participating in the
                                      Securities Transfer Agents
                                      Medallion Program or in such
                                      other guarantee program
                                      acceptable to the Trustee. The
                                      Assignor's signature to this
                                      assignment must correspond with
                                      the name as it appears upon the
                                      face of the within note in every
                                      particular without alteration or
                                      any change whatever.

                                     B-1-7
<PAGE>

                                   EXHIBIT B-2

                             FORM OF CLASS A-2 NOTE

        Unless this Note is presented by an authorized representative of The
Depository Trust Company, a New York corporation ("DTC"), to the Issuer (as
defined below) or its agent for registration of transfer, exchange or payment,
and any Note issued is registered in the name of Cede & Co. or in such other
name as is requested by an authorized representative of DTC (and any payment is
made to Cede & Co. or to such other entity as is requested by an authorized
representative of DTC), ANY TRANSFER, PLEDGE OR OTHER USE HEREOF FOR VALUE OR
OTHERWISE BY OR TO ANY PERSON IS WRONGFUL inasmuch as the registered owner
hereof, Cede & Co., has an interest herein.

        THE PRINCIPAL OF THIS NOTE IS PAYABLE AS SET FORTH HEREIN. ACCORDINGLY,
THE OUTSTANDING PRINCIPAL AMOUNT OF THIS NOTE AT ANY TIME MAY BE LESS THAN THE
AMOUNT SHOWN ON THE FACE HEREOF. THIS NOTE IS NOT GUARANTEED OR INSURED BY ANY
GOVERNMENTAL AGENCY.

                        NELNET STUDENT LOAN TRUST 2008-4
                         STUDENT LOAN ASSET-BACKED NOTES
                            SENIOR CLASS A-2 (LIBOR)

REGISTERED NO. R-__                                       REGISTERED $__________

   DATE OF ISSUANCE         MATURITY DATE         CUSIP NO.        ISIN NO.
     May 20, 2008        July 2018 Quarterly      64032J AB2     US64032JAB26
                          Distribution Date

PRINCIPAL SUM:        **______________________ DOLLARS**
REGISTERED OWNER:     **____________________**

        Nelnet Student Loan Trust 2008-4, a statutory trust organized and
existing under the laws of the State of Delaware (herein referred to as the
"Issuer"), for value received, hereby promises to pay to Registered Owner, or
registered assigns, on each Quarterly Distribution Date the principal sum equal
to the portion of the Principal Distribution Amount allocable to this Note for
such Quarterly Distribution Date, as described in the Indenture of Trust, dated
as of May 1, 2008, between the Issuer (by M&T Trust Company of Delaware, in its
capacity as Delaware Trustee) and Zions First National Bank, a national banking
association, as eligible lender trustee and indenture trustee (the "Trustee")
(capitalized terms used but not defined herein being defined in Article I of the
Indenture, which also contains rules as to usage that shall be applicable
herein); provided, however, that the entire unpaid principal amount of this Note
shall be due and payable on the Maturity Date specified above (the "Class A-2
Maturity Date").
<PAGE>

        The Issuer shall pay interest on this Note at the rate per annum equal
to the Class A-2 Rate (as defined herein), on each Quarterly Distribution Date
until the principal of this Note is paid or made available for payment, on the
principal amount of this Note outstanding on the preceding Quarterly
Distribution Date or the Date of Issuance in the case of the first Quarterly
Distribution Date (after giving effect to all payments of principal made on the
preceding Quarterly Distribution Date), subject to certain limitations contained
in the Indenture. Interest on this Note shall accrue from and including the
preceding Quarterly Distribution Date (or, in the case of the first Interest
Accrual Period, the Date of Issuance) to but excluding the following Quarterly
Distribution Date (each an "Interest Accrual Period"). Interest shall be
calculated on the basis of the actual number of days elapsed in each Interest
Accrual Period divided by 360 and rounding the resultant figure to the fifth
decimal point. Such principal of and interest on this Note shall be paid in the
manner specified on the reverse hereof.

        The principal of and interest on this Note are payable in such coin or
currency of the United States of America as at the time of payment is legal
tender for payment of public and private debts. All payments made by the Issuer
with respect to this Note shall be applied first to interest due and payable on
this Note as provided above and then to the unpaid principal of this Note.

        Reference is made to the further provisions of this Note set forth on
the reverse hereof, which shall have the same effect as though fully set forth
on the face of this Note.

        Unless the certificate of authentication hereon has been executed by the
Trustee whose name appears below by manual signature, this Note shall not be
entitled to any benefit under the Indenture referred to on the reverse hereof,
or be valid or obligatory for any purpose.

                                     B-2-2
<PAGE>

        IN WITNESS WHEREOF, the Issuer has caused this instrument to be duly
executed, manually or in facsimile, as of the date set forth below.

                                      NELNET STUDENT LOAN TRUST 2008-4

                                      By  M&T TRUST COMPANY OF
                                          DELAWARE, not in its
                                          individual capacity but
                                          solely as Delaware Trustee
                                          under the Trust Agreement,

                                      By
                                         ---------------------------------------
                                          Authorized Signatory

Date: __________ __, ____

                     TRUSTEE'S CERTIFICATE OF AUTHENTICATION

        This is one of the Notes designated above and referred to in the
within-mentioned Indenture.

                                      ZIONS FIRST NATIONAL BANK, not in its
                                      individual capacity but solely as Trustee,

                                      By
                                         ---------------------------------------
                                          Authorized Signatory

Date: __________ __, ____

                                     B-2-3
<PAGE>

        This Note is one of a duly authorized issue of Notes of the Issuer,
designated as its Student Loan Asset-Backed Notes, Senior Class A-2 (the "Class
A-2 Notes"), which, together with the Issuer's Student Loan Asset-Backed Notes,
Senior Class A-1, Class A-3 and Class A-4 (together with the Class A-2 Notes,
the "Class A Notes") and the Issuer's Student Loan Asset-Backed Notes,
Subordinate Class B (the "Class B Notes" and, together with the Class A Notes,
the "Notes"), are issued under and secured by the Indenture, to which Indenture
and all indentures supplemental thereto reference is hereby made for a statement
of the respective rights and obligations thereunder of the Issuer, the Trustee
and the Registered Owners. The Notes are subject to all terms of the Indenture.

        The Indenture provides that the Issuer may enter into a derivative
product (a "Derivative Product") between the Issuer and a derivative provider (a
"Counterparty"), as originally executed and as amended or supplemented, or other
interest rate hedge agreement between the Issuer and a Counterparty, as
originally executed and as amended or supplemented. Payments due to a
Counterparty from the Issuer pursuant to the applicable Derivative Product are
referred to herein as "Issuer Derivative Payments," and may be paid on a parity
with interest on any class of the Notes.

        The Class A-2 Notes are and will be secured by the Trust Estate pledged
as security therefor as provided in the Indenture. The Class A Notes are senior
to the Class B Notes as and to the extent provided in the Indenture. The Class A
Notes are, except for certain Termination Payments that are not Priority
Termination Payments, issued on a parity with any Derivative Products entered
into by the Issuer with a Counterparty, pursuant to which the Issuer will, from
time to time, owe Issuer Derivative Payments, and will, from time to time, be
owed Counterparty Payments.

        Principal of the Class A-2 Notes shall be payable on each Quarterly
Distribution Date in an amount equal to the portion of the Principal
Distribution Amount allocable to this Note for such Quarterly Distribution Date.
"Quarterly Distribution Date" means the twenty-fifth (25th) day of each January,
April, July and October, if any such date is not a Business Day, the immediately
succeeding Business Day, commencing July 25, 2008.

        As described on the face hereof, the entire unpaid principal amount of
this Note shall be due and payable on the Class A-2 Maturity Date.
Notwithstanding the foregoing, the entire unpaid principal amount of the Notes
shall be due and payable on the date on which (a) an Event of Default shall have
occurred and be continuing and (b) either the Trustee or the Registered Owners
of Obligations representing not less than a majority of the Outstanding Amount
of the Highest Priority Obligations shall have declared the Notes to be
immediately due and payable in the manner provided in the Indenture.

        The Notes are subject to redemption from the proceeds of a sale of
Financed Eligible Loans in accordance with Section 10.03 or 10.04 of the
Indenture on any Quarterly Distribution Date on or after (a) the October 2018
Quarterly Distribution Date and (b) the Quarterly Distribution Date next
succeeding the date on which the then outstanding Pool Balance is 10% or less of
the Initial Pool Balance (all as defined in the Indenture), in whole only, at a
redemption price equal to the principal amount thereof being redeemed, plus
accrued interest, if any, due and payable on the Notes to such Quarterly
Distribution Date.
                                     B-2-4
<PAGE>

        Interest on the Class A-2 Notes shall be payable on each Quarterly
Distribution Date on the principal amount outstanding of the Class A-2 Notes
until the principal amount thereof is paid in full, at a rate per annum equal to
the Class A-2 Rate. The "Class A-2 Rate" for each Interest Accrual Period, other
than the first Interest Accrual Period, shall be equal to the applicable
Three-Month LIBOR, plus 0.70%. The "Class A-2 Rate" for the first Interest
Accrual Period shall be determined by reference to the following formula:

        x + [4/30* (y-x)] plus 0.70%, as determined by the Administrator.

        where:

        x = Two-Month LIBOR, and

        y = Three-Month LIBOR.

        Payments of interest on this Note on each Quarterly Distribution Date,
together with the installment of principal, if any, to the extent not in full
payment of this Note, shall be paid to the Person in whose name such Note is
registered on the Record Date by check mailed first-class, postage prepaid to
such Person's address as it appears on the records of the Trustee on such Record
Date, except that, unless definitive Notes have been issued pursuant to the
Indenture, with respect to Notes registered on the Record Date in the name of
the nominee of the Clearing Agency (initially, such nominee to be Cede & Co.),
payment shall be made by wire transfer in immediately available funds to the
account designated by such nominee. If funds are expected to be available, as
provided in the Indenture, for payment in full of the then remaining unpaid
principal amount of this Note on a Quarterly Distribution Date, then the Trustee
shall notify the Person in whose name a Note is registered at the close of
business on the Record Date preceding the Quarterly Distribution Date on which
the Issuer expects that the final installment of principal of and interest on
such Note will be paid. Such notice shall be mailed or transmitted by facsimile
prior to such final Quarterly Distribution Date and shall specify that such
final installment will be payable only upon presentation and surrender of such
Note and shall specify the place where such Note may be presented and
surrendered for payment of such installment.

        As provided in the Indenture and subject to certain limitations set
forth therein, the transfer of this Note may be registered upon the records of
the Trustee upon surrender for transfer of any Note at the Principal Office of
the Trustee, duly endorsed for transfer or accompanied by an assignment duly
executed by the Registered Owner or his attorney duly authorized in writing, and
thereupon the Issuer shall execute and the Trustee shall authenticate and
deliver in the name of the transferee or transferees a new fully registered Note
or Notes of the same interest rate and for a like Class and aggregate principal
amount of the same maturity.

        As to any Note, the person in whose name the same shall be registered
shall be deemed and regarded as the absolute owner thereof for all purposes, and
payment of either principal or interest on any fully registered Note shall be
made only to or upon the written order of the Registered Owner thereof or his
legal representative but such registration may be changed as provided in the
Indenture. All such payments shall be valid and effectual to satisfy and
discharge the liability upon such Note to the extent of the sum or sums paid.

                                     B-2-5
<PAGE>

        Each Registered Owner and each transferee of a Note shall be deemed to
represent and warrant that either (a) it is not acquiring the Note directly or
indirectly for, or on behalf of, an ERISA plan or any entity whose underlying
assets are deemed to be plan assets of such ERISA plan; or (b)(i) the
acquisition and holding of the Notes will not result in a nonexempt prohibited
transaction under Section 406 of ERISA or Section 4975 of the Code or similar
law and (ii) if the Notes are subsequently deemed to be "plan assets" pursuant
to the regulations set forth at 29 C.F.R. ss. 2510.3-101, it will promptly
dispose of the Notes.

        The Trustee shall require the payment by any Registered Owner requesting
exchange or transfer of any tax or other governmental charge required to be paid
with respect to such exchange or transfer. The applicant for any such transfer
or exchange may be required to pay all taxes and governmental charges in
connection with such transfer or exchange, other than exchanges pursuant to the
Indenture.

        The term "Issuer" as used in this Note includes any successor to the
Issuer under the Indenture.

        The Issuer is permitted by the Indenture, under certain circumstances,
to merge or consolidate, subject to the rights of the Trustee and the Registered
Owners under the Indenture.

        The Notes are issuable only in registered form in denominations as
provided in the Indenture, subject to certain limitations therein set forth.

        This Note shall be construed in accordance with the laws of the State of
New York, without reference to its conflict of law provisions, and the
obligations, rights and remedies of the parties hereunder and thereunder shall
be determined in accordance with such laws.

        No reference herein to the Indenture and no provision of this Note or of
the Indenture shall alter or impair the obligation of the Issuer, which is
absolute and unconditional, to pay the principal of and interest on this Note at
the times, place and rate, and in the coin or currency, herein prescribed.

                                     B-2-6
<PAGE>

                                   ASSIGNMENT

Social Security or taxpayer I.D. or other identifying number of assignee

_______________________________________________________________________________

    FOR VALUE RECEIVED, the undersigned hereby sells, assigns and transfers unto

_______________________________________________________________________________
                         (name and address of assignee)
the within Note and all rights thereunder, and hereby irrevocably constitutes
and appoints___________________________________________________________________
attorney, to transfer said Note on the books kept for registration thereof, with
full power of substitution in the premises.

Dated:
       -----------------------------

                                       By                                      *
                                          -------------------------------------
                                       Name
                                            ------------------------------------
                                       Title
                                             -----------------------------------

                                       Signature Guaranteed:

                                       By * *NOTICE: Signature(s) should
                                       be guaranteed by a guarantor
                                       institution participating in the
                                       Securities Transfer Agents
                                       Medallion Program or in such
                                       other guarantee program
                                       acceptable to the Trustee. The
                                       Assignor's signature to this
                                       assignment must correspond with
                                       the name as it appears upon the
                                       face of the within note in every
                                       particular without alteration or
                                       any change whatever.

                                     B-2-27
<PAGE>

                                   EXHIBIT B-3

                             FORM OF CLASS A-3 NOTE

        Unless this Note is presented by an authorized representative of The
Depository Trust Company, a New York corporation ("DTC"), to the Issuer (as
defined below) or its agent for registration of transfer, exchange or payment,
and any Note issued is registered in the name of Cede & Co. or in such other
name as is requested by an authorized representative of DTC (and any payment is
made to Cede & Co. or to such other entity as is requested by an authorized
representative of DTC), ANY TRANSFER, PLEDGE OR OTHER USE HEREOF FOR VALUE OR
OTHERWISE BY OR TO ANY PERSON IS WRONGFUL inasmuch as the registered owner
hereof, Cede & Co., has an interest herein.

        THE PRINCIPAL OF THIS NOTE IS PAYABLE AS SET FORTH HEREIN. ACCORDINGLY,
THE OUTSTANDING PRINCIPAL AMOUNT OF THIS NOTE AT ANY TIME MAY BE LESS THAN THE
AMOUNT SHOWN ON THE FACE HEREOF. THIS NOTE IS NOT GUARANTEED OR INSURED BY ANY
GOVERNMENTAL AGENCY.

                        NELNET STUDENT LOAN TRUST 2008-4
                         STUDENT LOAN ASSET-BACKED NOTES
                            SENIOR CLASS A-3 (LIBOR)

REGISTERED NO. R-__                                      REGISTERED $__________

   DATE OF ISSUANCE         MATURITY DATE           CUSIP NO.         ISIN NO.
     May 20, 2008       October 2019 Quarterly      64032J AC0      US64032JAC09
                          Distribution Date

PRINCIPAL SUM:        **______________________ DOLLARS**
REGISTERED OWNER:     **____________________**

        Nelnet Student Loan Trust 2008-4, a statutory trust organized and
existing under the laws of the State of Delaware (herein referred to as the
"Issuer"), for value received, hereby promises to pay to the Registered Owner,
or registered assigns, on each Quarterly Distribution Date the principal sum
equal to the portion of the Principal Distribution Amount allocable to this Note
for such Quarterly Distribution Date, as described in the Indenture of Trust,
dated as of May 1, 2008, between the Issuer (by M&T Trust Company of Delaware,
in its capacity as Delaware Trustee) and Zions First National Bank, a national
banking association, as eligible lender trustee and indenture trustee (the
"Trustee") (capitalized terms used but not defined herein being defined in
Article I of the Indenture, which also contains rules as to usage that shall be
applicable herein); provided, however, that the entire unpaid principal amount
of this Note shall be due and payable on the Maturity Date specified above (the
"Class A-3 Maturity Date").
<PAGE>

        The Issuer shall pay interest on this Note at the rate per annum equal
to the Class A-3 Rate (as defined herein), on each Quarterly Distribution Date
until the principal of this Note is paid or made available for payment, on the
principal amount of this Note outstanding on the preceding Quarterly
Distribution Date or the Date of Issuance in the case of the first Quarterly
Distribution Date (after giving effect to all payments of principal made on the
preceding Quarterly Distribution Date), subject to certain limitations contained
in the Indenture. Interest on this Note shall accrue from and including the
preceding Quarterly Distribution Date (or, in the case of the first Interest
Accrual Period, the Date of Issuance) to but excluding the following Quarterly
Distribution Date (each an "Interest Accrual Period"). Interest shall be
calculated on the basis of the actual number of days elapsed in each Interest
Accrual Period divided by 360 and rounding the resultant figure to the fifth
decimal point. Such principal of and interest on this Note shall be paid in the
manner specified on the reverse hereof.

        The principal of and interest on this Note are payable in such coin or
currency of the United States of America as at the time of payment is legal
tender for payment of public and private debts. All payments made by the Issuer
with respect to this Note shall be applied first to interest due and payable on
this Note as provided above and then to the unpaid principal of this Note.

        Reference is made to the further provisions of this Note set forth on
the reverse hereof, which shall have the same effect as though fully set forth
on the face of this Note.

        Unless the certificate of authentication hereon has been executed by the
Trustee whose name appears below by manual signature, this Note shall not be
entitled to any benefit under the Indenture referred to on the reverse hereof,
or be valid or obligatory for any purpose.

                                      B-3-2
<PAGE>

        IN WITNESS WHEREOF, the Issuer has caused this instrument to be duly
executed, manually or in facsimile, as of the date set forth below.

                                      NELNET STUDENT LOAN TRUST 2008-4

                                      By  M&T TRUST COMPANY OF
                                          DELAWARE, not in its
                                          individual capacity but
                                          solely as Delaware Trustee
                                          under the Trust Agreement,

                                      By
                                         ---------------------------------------
                                          Authorized Signatory

Date: __________ __, ____

                     TRUSTEE'S CERTIFICATE OF AUTHENTICATION

        This is one of the Notes designated above and referred to in the
within-mentioned Indenture.

                                      ZIONS FIRST NATIONAL BANK, not in its
                                      individual capacity but solely as Trustee,

                                      By
                                         ---------------------------------------
                                          Authorized Signatory

Date: __________ __, ____

                                      B-3-3
<PAGE>

        This Note is one of a duly authorized issue of Notes of the Issuer,
designated as its Student Loan Asset-Backed Notes, Senior Class A-3 (the "Class
A-3 Notes"), which, together with the Issuer's Student Loan Asset-Backed Notes,
Senior Class A-1, Class A-2 and Class A-4 (together with the Class A-3 Notes,
the "Class A Notes") and the Issuer's Student Loan Asset-Backed Notes,
Subordinate Class B (the "Class B Notes" and, together with the Class A Notes,
the "Notes"), are issued under and secured by the Indenture, to which Indenture
and all indentures supplemental thereto reference is hereby made for a statement
of the respective rights and obligations thereunder of the Issuer, the Trustee
and the Registered Owners. The Notes are subject to all terms of the Indenture.

        The Indenture provides that the Issuer may enter into a derivative
product (a "Derivative Product") between the Issuer and a derivative provider (a
"Counterparty"), as originally executed and as amended or supplemented, or other
interest rate hedge agreement between the Issuer and a Counterparty, as
originally executed and as amended or supplemented. Payments due to a
Counterparty from the Issuer pursuant to the applicable Derivative Product are
referred to herein as "Issuer Derivative Payments," and may be paid on a parity
with interest on any class of the Notes.

        The Class A-3 Notes are and will be secured by the Trust Estate pledged
as security therefor as provided in the Indenture. The Class A Notes are senior
to the Class B Notes as and to the extent provided in the Indenture. The Class A
Notes are, except for certain Termination Payments that are not Priority
Termination Payments, issued on a parity with any Derivative Products entered
into by the Issuer with a Counterparty, pursuant to which the Issuer will, from
time to time, owe Issuer Derivative Payments, and will, from time to time, be
owed Counterparty Payments.

        Principal of the Class A-3 Notes shall be payable on each Quarterly
Distribution Date in an amount equal to the portion of the Principal
Distribution Amount allocable to this Note for such Quarterly Distribution Date.
"Quarterly Distribution Date" means the twenty-fifth (25th) day of each January,
April, July and October, if any such date is not a Business Day, the immediately
succeeding Business Day, commencing July 25, 2008.

        As described on the face hereof, the entire unpaid principal amount of
this Note shall be due and payable on the Class A-3 Maturity Date.
Notwithstanding the foregoing, the entire unpaid principal amount of the Notes
shall be due and payable on the date on which (a) an Event of Default shall have
occurred and be continuing and (b) either the Trustee or the Registered Owners
of Obligations representing not less than a majority of the Outstanding Amount
of the Highest Priority Obligations shall have declared the Notes to be
immediately due and payable in the manner provided in the Indenture.

        The Notes are subject to redemption from the proceeds of a sale of
Financed Eligible Loans in accordance with Section 10.03 or 10.04 of the
Indenture on any Quarterly Distribution Date on or after (a) the October 2018
Quarterly Distribution Date and (b) the Quarterly Distribution Date next
succeeding the date on which the then outstanding Pool Balance is 10% or less of
the Initial Pool Balance (all as defined in the Indenture), in whole only, at a
redemption price equal to the principal amount thereof being redeemed, plus
accrued interest, if any, due and payable on the Notes to such Quarterly
Distribution Date.

                                      B-3-4

<PAGE>

        Interest on the Class A-3 Notes shall be payable on each Quarterly
Distribution Date on the principal amount outstanding of the Class A-3 Notes
until the principal amount thereof is paid in full, at a rate per annum equal to
the Class A-3 Rate. The "Class A-3 Rate" for each Interest Accrual Period, other
than the first Interest Accrual Period, shall be equal to the applicable
Three-Month LIBOR, plus 0.93%. The "Class A-3 Rate" for the first Interest
Accrual Period shall be determined by reference to the following formula:

        x + [4/30* (y-x)] plus 0.93%, as determined by the Administrator.

        where:

        x = Two-Month LIBOR, and

        y = Three-Month LIBOR.

        Payments of interest on this Note on each Quarterly Distribution Date,
together with the installment of principal, if any, to the extent not in full
payment of this Note, shall be paid to the Person in whose name such Note is
registered on the Record Date by check mailed first-class, postage prepaid to
such Person's address as it appears on the records of the Trustee on such Record
Date, except that, unless definitive Notes have been issued pursuant to the
Indenture, with respect to Notes registered on the Record Date in the name of
the nominee of the Clearing Agency (initially, such nominee to be Cede & Co.),
payment shall be made by wire transfer in immediately available funds to the
account designated by such nominee. If funds are expected to be available, as
provided in the Indenture, for payment in full of the then remaining unpaid
principal amount of this Note on a Quarterly Distribution Date, then the Trustee
shall notify the Person in whose name a Note is registered at the close of
business on the Record Date preceding the Quarterly Distribution Date on which
the Issuer expects that the final installment of principal of and interest on
such Note will be paid. Such notice shall be mailed or transmitted by facsimile
prior to such final Quarterly Distribution Date and shall specify that such
final installment will be payable only upon presentation and surrender of such
Note and shall specify the place where such Note may be presented and
surrendered for payment of such installment.

        As provided in the Indenture and subject to certain limitations set
forth therein, the transfer of this Note may be registered upon the records of
the Trustee upon surrender for transfer of any Note at the Principal Office of
the Trustee, duly endorsed for transfer or accompanied by an assignment duly
executed by the Registered Owner or his attorney duly authorized in writing, and
thereupon the Issuer shall execute and the Trustee shall authenticate and
deliver in the name of the transferee or transferees a new fully registered Note
or Notes of the same interest rate and for a like Class and aggregate principal
amount of the same maturity.

        As to any Note, the person in whose name the same shall be registered
shall be deemed and regarded as the absolute owner thereof for all purposes, and
payment of either principal or interest on any fully registered Note shall be
made only to or upon the written order of the Registered Owner thereof or his
legal representative but such registration may be changed as provided in the
Indenture. All such payments shall be valid and effectual to satisfy and
discharge the liability upon such Note to the extent of the sum or sums paid.

                                      B-3-5
<PAGE>

        Each Registered Owner and each transferee of a Note shall be deemed to
represent and warrant that either (a) it is not acquiring the Note directly or
indirectly for, or on behalf of, an ERISA plan or any entity whose underlying
assets are deemed to be plan assets of such ERISA plan; or (b)(i) the
acquisition and holding of the Notes will not result in a nonexempt prohibited
transaction under Section 406 of ERISA or Section 4975 of the Code or similar
law and (ii) if the Notes are subsequently deemed to be "plan assets" pursuant
to the regulations set forth at 29 C.F.R. ss. 2510.3-101, it will promptly
dispose of the Notes.

        The Trustee shall require the payment by any Registered Owner requesting
exchange or transfer of any tax or other governmental charge required to be paid
with respect to such exchange or transfer. The applicant for any such transfer
or exchange may be required to pay all taxes and governmental charges in
connection with such transfer or exchange, other than exchanges pursuant to the
Indenture.

        The term "Issuer" as used in this Note includes any successor to the
Issuer under the Indenture.

        The Issuer is permitted by the Indenture, under certain circumstances,
to merge or consolidate, subject to the rights of the Trustee and the Registered
Owners under the Indenture.

        The Notes are issuable only in registered form in denominations as
provided in the Indenture, subject to certain limitations therein set forth.

        This Note shall be construed in accordance with the laws of the State of
New York, without reference to its conflict of law provisions, and the
obligations, rights and remedies of the parties hereunder and thereunder shall
be determined in accordance with such laws.

        No reference herein to the Indenture and no provision of this Note or of
the Indenture shall alter or impair the obligation of the Issuer, which is
absolute and unconditional, to pay the principal of and interest on this Note at
the times, place and rate, and in the coin or currency, herein prescribed.

                                      B-3-6
<PAGE>

                                   ASSIGNMENT

Social Security or taxpayer I.D. or other identifying number of assignee

_______________________________________________________________________________

    FOR VALUE RECEIVED, the undersigned hereby sells, assigns and transfers unto

_______________________________________________________________________________
                         (name and address of assignee)
the within Note and all rights thereunder, and hereby irrevocably constitutes
and appoints___________________________________________________________________
attorney, to transfer said Note on the books kept for registration thereof, with
full power of substitution in the premises.

Dated:
       -----------------------------

                                       By                                     *
                                          ------------------------------------
                                       Name
                                            -----------------------------------
                                       Title
                                             ----------------------------------

                                       Signature Guaranteed:

                                       By * *NOTICE: Signature(s) should
                                       be guaranteed by a guarantor
                                       institution participating in the
                                       Securities Transfer Agents
                                       Medallion Program or in such
                                       other guarantee program
                                       acceptable to the Trustee. The
                                       Assignor's signature to this
                                       assignment must correspond with
                                       the name as it appears upon the
                                       face of the within note in every
                                       particular without alteration or
                                       any change whatever.

                                      B-3-7
<PAGE>

                                   EXHIBIT B-4

                             FORM OF CLASS A-4 NOTE

        Unless this Note is presented by an authorized representative of The
Depository Trust Company, a New York corporation ("DTC"), to the Issuer (as
defined below) or its agent for registration of transfer, exchange or payment,
and any Note issued is registered in the name of Cede & Co. or in such other
name as is requested by an authorized representative of DTC (and any payment is
made to Cede & Co. or to such other entity as is requested by an authorized
representative of DTC), ANY TRANSFER, PLEDGE OR OTHER USE HEREOF FOR VALUE OR
OTHERWISE BY OR TO ANY PERSON IS WRONGFUL inasmuch as the registered owner
hereof, Cede & Co., has an interest herein.

        THE PRINCIPAL OF THIS NOTE IS PAYABLE AS SET FORTH HEREIN. ACCORDINGLY,
THE OUTSTANDING PRINCIPAL AMOUNT OF THIS NOTE AT ANY TIME MAY BE LESS THAN THE
AMOUNT SHOWN ON THE FACE HEREOF. THIS NOTE IS NOT GUARANTEED OR INSURED BY ANY
GOVERNMENTAL AGENCY.

                        NELNET STUDENT LOAN TRUST 2008-4
                         STUDENT LOAN ASSET-BACKED NOTES
                            SENIOR CLASS A-4 (LIBOR)

REGISTERED NO. R-__                                    REGISTERED $__________

   DATE OF ISSUANCE       MATURITY DATE          CUSIP NO.       ISIN NO.
     May 20, 2008      April 2024 Quarterly      64032J AD8    US64032JAD81
                        Distribution Date

PRINCIPAL SUM:        **______________________ DOLLARS**
REGISTERED OWNER:     **____________________**

        Nelnet Student Loan Trust 2008-4, a statutory trust organized and
existing under the laws of the State of Delaware (herein referred to as the
"Issuer"), for value received, hereby promises to pay to the Registered Owner,
or registered assigns, on each Quarterly Distribution Date the principal sum
equal to the portion of the Principal Distribution Amount allocable to this Note
for such Quarterly Distribution Date, as described in the Indenture of Trust,
dated as of May 1, 2008, between the Issuer (by M&T Trust Company of Delaware,
in its capacity as Delaware Trustee) and Zions First National Bank, a national
banking association, as eligible lender trustee and indenture trustee (the
"Trustee") (capitalized terms used but not defined herein being defined in
Article I of the Indenture, which also contains rules as to usage that shall be
applicable herein); provided, however, that the entire unpaid principal amount
of this Note shall be due and payable on the Maturity Date specified above (the
"Class A-4 Maturity Date").
<PAGE>

        The Issuer shall pay interest on this Note at the rate per annum equal
to the Class A-4 Rate (as defined herein), on each Quarterly Distribution Date
until the principal of this Note is paid or made available for payment, on the
principal amount of this Note outstanding on the preceding Quarterly
Distribution Date or the Date of Issuance in the case of the first Quarterly
Distribution Date (after giving effect to all payments of principal made on the
preceding Quarterly Distribution Date), subject to certain limitations contained
in the Indenture. Interest on this Note shall accrue from and including the
preceding Quarterly Distribution Date (or, in the case of the first Interest
Accrual Period, the Date of Issuance) to but excluding the following Quarterly
Distribution Date (each an "Interest Accrual Period"). Interest shall be
calculated on the basis of the actual number of days elapsed in each Interest
Accrual Period divided by 360 and rounding the resultant figure to the fifth
decimal point. Such principal of and interest on this Note shall be paid in the
manner specified on the reverse hereof.

        The principal of and interest on this Note are payable in such coin or
currency of the United States of America as at the time of payment is legal
tender for payment of public and private debts. All payments made by the Issuer
with respect to this Note shall be applied first to interest due and payable on
this Note as provided above and then to the unpaid principal of this Note.

        Reference is made to the further provisions of this Note set forth on
the reverse hereof, which shall have the same effect as though fully set forth
on the face of this Note.

        Unless the certificate of authentication hereon has been executed by the
Trustee whose name appears below by manual signature, this Note shall not be
entitled to any benefit under the Indenture referred to on the reverse hereof,
or be valid or obligatory for any purpose.

                                      B-4-2
<PAGE>

        IN WITNESS WHEREOF, the Issuer has caused this instrument to be duly
executed, manually or in facsimile, as of the date set forth below.

                                      NELNET STUDENT LOAN TRUST 2008-4

                                      By  M&T TRUST COMPANY OF
                                          DELAWARE, not in its
                                          individual capacity but
                                          solely as Delaware Trustee
                                          under the Trust Agreement,

                                      By
                                         ---------------------------------------
                                          Authorized Signatory

Date: __________ __, ____

                     TRUSTEE'S CERTIFICATE OF AUTHENTICATION

        This is one of the Notes designated above and referred to in the
within-mentioned Indenture.

                                      ZIONS FIRST NATIONAL BANK, not in its
                                      individual capacity but solely as Trustee,

                                      By
                                         ---------------------------------------
                                          Authorized Signatory

Date: __________ __, ____

                                      B-4-3
<PAGE>

        This Note is one of a duly authorized issue of Notes of the Issuer,
designated as its Student Loan Asset-Backed Notes, Senior Class A-4 (the "Class
A-4 Notes"), which, together with the Issuer's Student Loan Asset-Backed Notes,
Senior Class A-1, Class A-2 and Class A-3 (together with the Class A-4 Notes,
the "Class A Notes") and the Issuer's Student Loan Asset-Backed Notes,
Subordinate Class B (the "Class B Notes" and, together with the Class A Notes,
the "Notes"), are issued under and secured by the Indenture, to which Indenture
and all indentures supplemental thereto reference is hereby made for a statement
of the respective rights and obligations thereunder of the Issuer, the Trustee
and the Registered Owners. The Notes are subject to all terms of the Indenture.

        The Indenture provides that the Issuer may enter into a derivative
product (a "Derivative Product") between the Issuer and a derivative provider (a
"Counterparty"), as originally executed and as amended or supplemented, or other
interest rate hedge agreement between the Issuer and a Counterparty, as
originally executed and as amended or supplemented. Payments due to a
Counterparty from the Issuer pursuant to the applicable Derivative Product are
referred to herein as "Issuer Derivative Payments," and may be paid on a parity
with interest on any class of the Notes.

        The Class A-4 Notes are and will be secured by the Trust Estate pledged
as security therefor as provided in the Indenture. The Class A Notes are senior
to the Class B Notes as and to the extent provided in the Indenture. The Class A
Notes are, except for certain Termination Payments that are not Priority
Termination Payments, issued on a parity with any Derivative Products entered
into by the Issuer with a Counterparty, pursuant to which the Issuer will, from
time to time, owe Issuer Derivative Payments, and will, from time to time, be
owed Counterparty Payments.

        Principal of the Class A-4 Notes shall be payable on each Quarterly
Distribution Date in an amount equal to the portion of the Principal
Distribution Amount allocable to this Note for such Quarterly Distribution Date.
"Quarterly Distribution Date" means the twenty-fifth (25th) day of each January,
April, July and October, if any such date is not a Business Day, the immediately
succeeding Business Day, commencing July 25, 2008.

        As described on the face hereof, the entire unpaid principal amount of
this Note shall be due and payable on the Class A-4 Maturity Date.
Notwithstanding the foregoing, the entire unpaid principal amount of the Notes
shall be due and payable on the date on which (a) an Event of Default shall have
occurred and be continuing and (b) either the Trustee or the Registered Owners
of Obligations representing not less than a majority of the Outstanding Amount
of the Highest Priority Obligations shall have declared the Notes to be
immediately due and payable in the manner provided in the Indenture.

        The Notes are subject to redemption from the proceeds of a sale of
Financed Eligible Loans in accordance with Section 10.03 or 10.04 of the
Indenture on any Quarterly Distribution Date on or after (a) the October 2018
Quarterly Distribution Date and (b) the Quarterly Distribution Date next
succeeding the date on which the then outstanding Pool Balance is 10% or less of
the Initial Pool Balance (all as defined in the Indenture), in whole only, at a
redemption price equal to the principal amount thereof being redeemed, plus
accrued interest, if any, due and payable on the Notes to such Quarterly
Distribution Date.

                                      B-4-4
<PAGE>

        Interest on the Class A-4 Notes shall be payable on each Quarterly
Distribution Date on the principal amount outstanding of the Class A-4 Notes
until the principal amount thereof is paid in full, at a rate per annum equal to
the Class A-4 Rate. The "Class A-4 Rate" for each Interest Accrual Period, other
than the first Interest Accrual Period, shall be equal to the applicable
Three-Month LIBOR, plus 1.48%. The "Class A-4 Rate" for the first Interest
Accrual Period shall be determined by reference to the following formula:

        x + [4/30* (y-x)] plus 1.48%, as determined by the Administrator.

        where:

        x = Two-Month LIBOR, and

        y = Three-Month LIBOR.

        Payments of interest on this Note on each Quarterly Distribution Date,
together with the installment of principal, if any, to the extent not in full
payment of this Note, shall be paid to the Person in whose name such Note is
registered on the Record Date by check mailed first-class, postage prepaid to
such Person's address as it appears on the records of the Trustee on such Record
Date, except that, unless definitive Notes have been issued pursuant to the
Indenture, with respect to Notes registered on the Record Date in the name of
the nominee of the Clearing Agency (initially, such nominee to be Cede & Co.),
payment shall be made by wire transfer in immediately available funds to the
account designated by such nominee. If funds are expected to be available, as
provided in the Indenture, for payment in full of the then remaining unpaid
principal amount of this Note on a Quarterly Distribution Date, then the Trustee
shall notify the Person in whose name a Note is registered at the close of
business on the Record Date preceding the Quarterly Distribution Date on which
the Issuer expects that the final installment of principal of and interest on
such Note will be paid. Such notice shall be mailed or transmitted by facsimile
prior to such final Quarterly Distribution Date and shall specify that such
final installment will be payable only upon presentation and surrender of such
Note and shall specify the place where such Note may be presented and
surrendered for payment of such installment.

        As provided in the Indenture and subject to certain limitations set
forth therein, the transfer of this Note may be registered upon the records of
the Trustee upon surrender for transfer of any Note at the Principal Office of
the Trustee, duly endorsed for transfer or accompanied by an assignment duly
executed by the Registered Owner or his attorney duly authorized in writing, and
thereupon the Issuer shall execute and the Trustee shall authenticate and
deliver in the name of the transferee or transferees a new fully registered Note
or Notes of the same interest rate and for a like Class and aggregate principal
amount of the same maturity.

        As to any Note, the person in whose name the same shall be registered
shall be deemed and regarded as the absolute owner thereof for all purposes, and
payment of either principal or interest on any fully registered Note shall be
made only to or upon the written order of the Registered Owner thereof or his
legal representative but such registration may be changed as provided in the
Indenture. All such payments shall be valid and effectual to satisfy and
discharge the liability upon such Note to the extent of the sum or sums paid.

                                      B-4-5
<PAGE>

        Each Registered Owner and each transferee of a Note shall be deemed to
represent and warrant that either (a) it is not acquiring the Note directly or
indirectly for, or on behalf of, an ERISA plan or any entity whose underlying
assets are deemed to be plan assets of such ERISA plan; or (b)(i) the
acquisition and holding of the Notes will not result in a nonexempt prohibited
transaction under Section 406 of ERISA or Section 4975 of the Code or similar
law and (ii) if the Notes are subsequently deemed to be "plan assets" pursuant
to the regulations set forth at 29 C.F.R. ss. 2510.3-101, it will promptly
dispose of the Notes.

        The Trustee shall require the payment by any Registered Owner requesting
exchange or transfer of any tax or other governmental charge required to be paid
with respect to such exchange or transfer. The applicant for any such transfer
or exchange may be required to pay all taxes and governmental charges in
connection with such transfer or exchange, other than exchanges pursuant to the
Indenture.

        The term "Issuer" as used in this Note includes any successor to the
Issuer under the Indenture.

        The Issuer is permitted by the Indenture, under certain circumstances,
to merge or consolidate, subject to the rights of the Trustee and the Registered
Owners under the Indenture.

        The Notes are issuable only in registered form in denominations as
provided in the Indenture, subject to certain limitations therein set forth.

        This Note shall be construed in accordance with the laws of the State of
New York, without reference to its conflict of law provisions, and the
obligations, rights and remedies of the parties hereunder and thereunder shall
be determined in accordance with such laws.

        No reference herein to the Indenture and no provision of this Note or of
the Indenture shall alter or impair the obligation of the Issuer, which is
absolute and unconditional, to pay the principal of and interest on this Note at
the times, place and rate, and in the coin or currency, herein prescribed.

                                      B-4-6
<PAGE>

                                   ASSIGNMENT

Social Security or taxpayer I.D. or other identifying number of assignee

_______________________________________________________________________________

    FOR VALUE RECEIVED, the undersigned hereby sells, assigns and transfers unto

_______________________________________________________________________________
                         (name and address of assignee)
the within Note and all rights thereunder, and hereby irrevocably constitutes
and appoints___________________________________________________________________
attorney, to transfer said Note on the books kept for registration thereof, with
full power of substitution in the premises.

Dated:
       -----------------------------

                                      By                                      *
                                         -------------------------------------
                                      Name
                                           ------------------------------------
                                      Title
                                            -----------------------------------

                                      Signature Guaranteed:

                                      By * *NOTICE: Signature(s) should
                                      be guaranteed by a guarantor
                                      institution participating in the
                                      Securities Transfer Agents
                                      Medallion Program or in such
                                      other guarantee program
                                      acceptable to the Trustee. The
                                      Assignor's signature to this
                                      assignment must correspond with
                                      the name as it appears upon the
                                      face of the within note in every
                                      particular without alteration or
                                      any change whatever.

                                      B-4-7
<PAGE>

                                   EXHIBIT B-5

                              FORM OF CLASS B NOTE

        Unless this Note is presented by an authorized representative of The
Depository Trust Company, a New York corporation ("DTC"), to the Issuer (as
defined below) or its agent for registration of transfer, exchange or payment,
and any Note issued is registered in the name of Cede & Co. or in such other
name as is requested by an authorized representative of DTC (and any payment is
made to Cede & Co. or to such other entity as is requested by an authorized
representative of DTC), ANY TRANSFER, PLEDGE OR OTHER USE HEREOF FOR VALUE OR
OTHERWISE BY OR TO ANY PERSON IS WRONGFUL inasmuch as the registered owner
hereof, Cede & Co., has an interest herein.

        THE PRINCIPAL OF THIS NOTE IS PAYABLE AS SET FORTH HEREIN. ACCORDINGLY,
THE OUTSTANDING PRINCIPAL AMOUNT OF THIS NOTE AT ANY TIME MAY BE LESS THAN THE
AMOUNT SHOWN ON THE FACE HEREOF. THIS NOTE IS NOT GUARANTEED OR INSURED BY ANY
GOVERNMENTAL AGENCY.

                        NELNET STUDENT LOAN TRUST 2008-4
                         STUDENT LOAN ASSET-BACKED NOTES
                           SUBORDINATE CLASS B (LIBOR)

REGISTERED NO. R-__                                      REGISTERED $__________

   DATE OF ISSUANCE            MATURITY DATE        CUSIP NO.         ISIN NO.
     May 20, 2008          January 2030 Quarterly   64032J AE6      US64032JAE64
                             Distribution Date

PRINCIPAL SUM:        **_____________________ DOLLARS**
REGISTERED OWNER:     **___________________**

        Nelnet Student Loan Trust 2008-4, a statutory trust organized and
existing under the laws of the State of Delaware (herein referred to as the
"Issuer"), for value received, hereby promises to pay to the Registered Owner,
or registered assigns, on each Quarterly Distribution Date the principal sum
equal to the portion of the Principal Distribution Amount allocable to this Note
for such Quarterly Distribution Date, as described in the Indenture of Trust,
dated as of May 1, 2008, between the Issuer (by M&T Trust Company of Delaware,
in its capacity as Delaware Trustee) and Zions First National Bank, a national
banking association, as eligible lender trustee and indenture trustee (the
"Trustee") (capitalized terms used but not defined herein being defined in
Article I of the Indenture, which also contains rules as to usage that shall be
applicable herein); provided, however, that the entire unpaid principal amount
of this Note shall be due and payable on the Maturity Date specified above (the
"Class B Maturity Date").
<PAGE>

        The Issuer shall pay interest on this Note at the rate per annum equal
to the Class B Rate (as defined on the reverse hereof), on each Quarterly
Distribution Date until the principal of this Note is paid or made available for
payment, on the principal amount of this Note outstanding on the preceding
Quarterly Distribution Date or the Date of Issuance in the case of the first
Quarterly Distribution Date (after giving effect to all payments of principal
made on the preceding Quarterly Distribution Date), subject to certain
limitations contained in the Indenture. Interest on this Note shall accrue from
and including the preceding Quarterly Distribution Date (or, in the case of the
first Interest Accrual Period, the Date of Issuance) to but excluding the
following Quarterly Distribution Date (each an "Interest Accrual Period").
Interest shall be calculated on the basis of the actual number of days elapsed
in each Interest Accrual Period divided by 360 and rounding the resultant figure
to the fifth decimal point. Such principal of and interest on this Note shall be
paid in the manner specified on the reverse hereof.

        The principal of and interest on this Note are payable in such coin or
currency of the United States of America as at the time of payment is legal
tender for payment of public and private debts. All payments made by the Issuer
with respect to this Note shall be applied first to interest due and payable on
this Note as provided above and then to the unpaid principal of this Note.

        Reference is made to the further provisions of this Note set forth on
the reverse hereof, which shall have the same effect as though fully set forth
on the face of this Note.

        Unless the certificate of authentication hereon has been executed by the
Trustee whose name appears below by manual signature, this Note shall not be
entitled to any benefit under the Indenture referred to on the reverse hereof,
or be valid or obligatory for any purpose.

                                      B-5-2
<PAGE>

        IN WITNESS WHEREOF, the Issuer has caused this instrument to be duly
executed, manually or in facsimile, as of the date set forth below.

                                      NELNET STUDENT LOAN TRUST 2008-4

                                      By  M&T TRUST COMPANY OF
                                          DELAWARE, not in its
                                          individual capacity but
                                          solely as Delaware Trustee
                                          under the Trust Agreement,

                                      By
                                         ---------------------------------------
                                          Authorized Signatory

Date: __________ __, ____

                     TRUSTEE'S CERTIFICATE OF AUTHENTICATION

        This is one of the Notes designated above and referred to in the
within-mentioned Indenture.

                                      ZIONS FIRST NATIONAL BANK, not in its
                                      individual capacity but solely as Trustee,

                                      By
                                         ---------------------------------------
                                          Authorized Signatory

Date: __________ __, ____

                                      B-5-3
<PAGE>

        This Note is one of a duly authorized issue of Notes of the Issuer,
designated as its Student Loan Asset-Backed Notes, Subordinate Class B (the
"Class B Notes"), which, together with the Issuer's Student Loan Asset-Backed
Notes, Senior Class A-1, Class A-2, Class A-3 and Class A-4 (collectively, the
"Class A Notes" and, together with the Class B Notes, the "Notes"), are issued
under and secured by the Indenture, to which Indenture and all indentures
supplemental thereto reference is hereby made for a statement of the respective
rights and obligations thereunder of the Issuer, the Trustee and the Registered
Owners. The Notes are subject to all terms of the Indenture.

        The Indenture provides that the Issuer may enter into a derivative
product (a "Derivative Product") between the Issuer and a derivative provider (a
"Counterparty"), as originally executed and as amended or supplemented, or other
interest rate hedge agreement between the Issuer and a Counterparty, as
originally executed and as amended or supplemented. Payments due to a
Counterparty from the Issuer pursuant to the applicable Derivative Product are
referred to herein as "Issuer Derivative Payments," and may be paid on a parity
with interest on any class of the Notes.

        The Class B Notes are and will be secured by the Trust Estate pledged as
security therefor as provided in the Indenture. The Class A Notes are senior to
the Class B Notes as and to the extent provided in the Indenture. The Class A
Notes are, except for certain Termination Payments that are not Priority
Termination Payments, issued on a parity with any Derivative Products entered
into by the Issuer with a Counterparty, pursuant to which the Issuer will, from
time to time, owe Issuer Derivative Payments, and will, from time to time, be
owed Counterparty Payments.

        Principal of the Class B Notes shall be payable on each Quarterly
Distribution Date in an amount equal to the portion of the Principal
Distribution Amount allocable to this Note for such Quarterly Distribution Date.
"Quarterly Distribution Date" means the twenty-fifth (25th) day of each January,
April, July and October or, if any such date is not a Business Day, the
immediately succeeding Business Day, commencing July 25, 2008.

        As described on the face hereof, the entire unpaid principal amount of
this Note shall be due and payable on the Class B Maturity Date. Notwithstanding
the foregoing, the entire unpaid principal amount of the Notes shall be due and
payable on the date on which (a) an Event of Default shall have occurred and be
continuing and (b) either the Trustee or the Registered Owners of Obligations
representing not less than a majority of the Outstanding Amount of the Highest
Priority Obligations shall have declared the Notes to be immediately due and
payable in the manner provided in the Indenture.

        The Notes are subject to redemption from the proceeds of a sale of
Financed Eligible Loans in accordance with Section 10.03 or 10.04 of the
Indenture on any Quarterly Distribution Date on or after (a) the October 2018
Quarterly Distribution Date and (b) the Quarterly Distribution Date next
succeeding the date on which the then outstanding Pool Balance is 10% or less of
the Initial Pool Balance (all as defined in the Indenture), in whole only, at a
redemption price equal to the principal amount thereof being redeemed, plus
accrued interest, if any, due and payable on the Notes to such Quarterly
Distribution Date.

                                      B-5-4
<PAGE>

        Interest on the Class B Notes shall be payable on each Quarterly
Distribution Date on the principal amount outstanding of the Class B Notes until
the principal amount thereof is paid in full, at a rate per annum equal to the
Class B Rate. The "Class B Rate" for each Interest Accrual Period, other than
the first Interest Accrual Period, shall be equal to the applicable Three-Month
LIBOR, plus 1.00%. The "Class B Rate" for the first Interest Accrual Period
shall be determined by reference to the following formula:

        x + [4/30* (y-x)] plus 1.00%, as determined by the Administrator.

        where:

        x = Two-Month LIBOR, and

        y = Three-Month LIBOR.

        If any Class B Notes' Interest Distribution Amount is not paid on a
Quarterly Distribution Date due to the occurrence and continuation of the
Subordinate Notes Interest Trigger, the Trustee shall determine the Class B
Notes Carry-over Amount with respect to the Class B Notes for such Interest
Accrual Period. Any Class B Notes Carry-over Amount shall bear interest
calculated at a rate equal to then applicable Class B Rate until such Class B
Notes Carry-over Amount is paid in full or is cancelled. Any payment in respect
of Class B Notes Carry-over Amount shall be applied, first, to any accrued
interest payable thereon and, second, in reduction of such Class B Notes
Carry-over Amount. For purposes of the Indenture, any reference to "principal"
or "interest" herein shall not include within the meaning of such words Class B
Notes Carry-over Amount or any interest accrued on any such Class B Notes
Carry-over Amount. Such Class B Notes Carry-over Amount shall be separately
calculated for each Class B Note by the Trustee during such Interest Accrual
Period in sufficient time for the Trustee to give notice to each Registered
Owner of such Class B Notes Carry-over Amount as required in the next succeeding
sentence. For each Quarterly Distribution Date with respect to which Class B
Notes Carry-over Amount is outstanding, the Trustee shall give written notice to
each Registered Owner and the Issuer of the Class B Notes Carry-over Amount
applicable to each Registered Owner's Class B Note, which written notice may
accompany the payment of interest made to each such Registered Owner on such
Quarterly Distribution Date or otherwise shall be mailed on such Quarterly
Distribution Date by first-class mail, postage prepaid, or by electronic means
to each such Registered Owner at such Registered Owner's address as it appears
on the registration records maintained by the Trustee. In addition to such Class
B Notes Carry-over Amount, such notice shall state, that (a) the Class B Notes
Carry-over Amount (and interest accrued thereon calculated at a rate equal to
then current Class B Rate) shall be paid by the Trustee on the Class B Notes on
the earliest of (i) the date of redemption of the Class B Notes or (ii) the
first occurring Quarterly Distribution Date if and to the extent that moneys are
available pursuant to the terms of Section 5.04(c)(ix) of the Indenture Section
in an amount sufficient to pay all or a portion of such Class B Notes Carry-over
Amount (and interest accrued thereon) and (b) interest shall accrue on the Class
B Notes Carry-over Amount at a rate equal to then current Class B Rate until
such Class B Notes Carry-over Amount is paid in full or is cancelled.

                                      B-5-5
<PAGE>

        Payments of interest on this Note on each Quarterly Distribution Date,
together with the installment of principal, if any, to the extent not in full
payment of this Note, shall be paid to the Person in whose name such Note is
registered on the Record Date by check mailed first-class, postage prepaid to
such Person's address as it appears on the records of the Trustee on such Record
Date, except that, unless definitive Notes have been issued pursuant to the
Indenture, with respect to Notes registered on the Record Date in the name of
the nominee of the Clearing Agency (initially, such nominee to be Cede & Co.),
payment shall be made by wire transfer in immediately available funds to the
account designated by such nominee. If funds are expected to be available, as
provided in the Indenture, for payment in full of the then remaining unpaid
principal amount of this Note on a Quarterly Distribution Date, then the Trustee
shall notify the Person in whose name a Note is registered at the close of
business on the Record Date preceding the Quarterly Distribution Date on which
the Issuer expects that the final installment of principal of and interest on
such Note will be paid. Such notice shall be mailed or transmitted by facsimile
prior to such final Quarterly Distribution Date and shall specify that such
final installment will be payable only upon presentation and surrender of such
Note and shall specify the place where such Note may be presented and
surrendered for payment of such installment.

        As provided in the Indenture and subject to certain limitations set
forth therein, the transfer of this Note may be registered upon the records of
the Trustee upon surrender for transfer of any Note at the Principal Office of
the Trustee, duly endorsed for transfer or accompanied by an assignment duly
executed by the Registered Owner or his attorney duly authorized in writing, and
thereupon the Issuer shall execute and the Trustee shall authenticate and
deliver in the name of the transferee or transferees a new fully registered Note
or Notes of the same interest rate and for a like Class and aggregate principal
amount of the same maturity.

        As to any Note, the person in whose name the same shall be registered
shall be deemed and regarded as the absolute owner thereof for all purposes, and
payment of either principal or interest on any fully registered Note shall be
made only to or upon the written order of the Registered Owner thereof or his
legal representative but such registration may be changed as provided in the
Indenture. All such payments shall be valid and effectual to satisfy and
discharge the liability upon such Note to the extent of the sum or sums paid.

        Each Registered Owner and each transferee of a Note shall be deemed to
represent and warrant that either (a) it is not acquiring the Note directly or
indirectly for, or on behalf of, an ERISA plan or any entity whose underlying
assets are deemed to be plan assets of such ERISA plan; or (b)(i) the
acquisition and holding of the Notes will not result in a nonexempt prohibited
transaction under Section 406 of ERISA or Section 4975 of the Code or similar
law and (ii) if the Notes are subsequently deemed to be "plan assets" pursuant
to the regulations set forth at 29 C.F.R. ss. 2510.3-101, it will promptly
dispose of the Notes.

        The Trustee shall require the payment by any Registered Owner requesting
exchange or transfer of any tax or other governmental charge required to be paid
with respect to such exchange or transfer. The applicant for any such transfer
or exchange may be required to pay all taxes and governmental charges in
connection with such transfer or exchange, other than exchanges pursuant to the
Indenture.

                                      B-5-6
<PAGE>

        The term "Issuer" as used in this Note includes any successor to the
Issuer under the Indenture.

        The Issuer is permitted by the Indenture, under certain circumstances,
to merge or consolidate, subject to the rights of the Trustee and the Registered
Owners under the Indenture.

        The Notes are issuable only in registered form in denominations as
provided in the Indenture, subject to certain limitations therein set forth.

        This Note shall be construed in accordance with the laws of the State of
New York, without reference to its conflict of law provisions, and the
obligations, rights and remedies of the parties hereunder and thereunder shall
be determined in accordance with such laws.

        No reference herein to the Indenture and no provision of this Note or of
the Indenture shall alter or impair the obligation of the Issuer, which is
absolute and unconditional, to pay the principal of and interest on this Note at
the times, place and rate, and in the coin or currency, herein prescribed.

                                      B-5-7
<PAGE>

                                   ASSIGNMENT

Social Security or taxpayer I.D. or other identifying number of assignee

_______________________________________________________________________________

    FOR VALUE RECEIVED, the undersigned hereby sells, assigns and transfers unto

_______________________________________________________________________________
                         (name and address of assignee)
the within Note and all rights thereunder, and hereby irrevocably constitutes
and appoints___________________________________________________________________
attorney, to transfer said Note on the books kept for registration thereof, with
full power of substitution in the premises.

Dated:
       -----------------------------

                                      By                                       *
                                         --------------------------------------
                                      Name
                                           -------------------------------------
                                      Title
                                            ------------------------------------

                                      Signature Guaranteed:

                                      By * *NOTICE: Signature(s) should
                                      be guaranteed by a guarantor
                                      institution participating in the
                                      Securities Transfer Agents
                                      Medallion Program or in such
                                      other guarantee program
                                      acceptable to the Trustee. The
                                      Assignor's signature to this
                                      assignment must correspond with
                                      the name as it appears upon the
                                      face of the within note in every
                                      particular without alteration or
                                      any change whatever.

                                      B-5-8
<PAGE>

                                    EXHIBIT C

                         FORM OF ADMINISTRATOR'S MONTHLY
                       SERVICING PAYMENT DATE CERTIFICATE

        This Administrator's Monthly Servicing Payment Date Certificate (the
"Certificate") is being provided by National Education Loan Network, Inc., as
Administrator (the "Administrator") to Nelnet Student Loan Trust 2008-4 (the
"Issuer") pursuant to Section 5.04(b) of the Indenture of Trust, dated as of May
1, 2008 (the "Indenture"), among the Issuer, Zions First National Bank, as
eligible lender trustee, and Zions First National Bank, as trustee (the
"Trustee"). All capitalized terms used in this Certificate and not otherwise
defined shall have the same meanings as assigned to such terms in the Indenture.

        Pursuant to this Certificate, the Administrator hereby directs the
Trustee to distribute to the Master Servicer, by 3:00 p.m. (New York City time)
on __________ __, ____ (the "Monthly Servicing Payment Date"), from and to the
extent of the Available Funds on deposit in the Collection Fund, $__________
Servicing Fee due with respect to the preceding calendar month.

        The Available Funds on this Monthly Servicing Payment Date are equal to
$__________.

        The Administrator hereby certifies that the information herein is true
and accurate in all material respects, is in compliance with the provisions of
the Indenture and that the Trustee may conclusively rely on this Certificate
with no further duty to examine or determine the information contained herein.

        IN WITNESS WHEREOF, the Administrator has caused this Certificate to be
duly executed and delivered as of the date written below.

                                      NATIONAL EDUCATION LOAN NETWORK, INC., as
                                      Administrator

                                      By
                                         --------------------------------------
                                          Authorized Signatory

[DATE]

<PAGE>

                                    EXHIBIT D

                             FORM OF ADMINISTRATOR'S
                     QUARTERLY DISTRIBUTION DATE CERTIFICATE

        This Administrator's Quarterly Distribution Date Certificate (the
"Certificate") is being provided by National Education Loan Network, Inc., as
Administrator (the "Administrator") to Nelnet Student Loan Trust 2008-4 (the
"Issuer") pursuant to Section 5.04(c) of the Indenture of Trust, dated as of May
1, 2008 (the "Indenture"), among the Issuer, Zions First National Bank, as
eligible lender trustee, and Zions First National Bank, as trustee (the
"Trustee"). All capitalized terms used in this Certificate and not otherwise
defined shall have the same meanings as assigned to such terms in the Indenture.

QUARTERLY DISTRIBUTION DATE

        Pursuant to this Certificate, the Administrator hereby directs the
Trustee to make the following deposits and distributions to the Persons or to
the account specified below by 3:00 p.m. (New York City time) on __________ __,
_____ (the "Quarterly Distribution Date"), to the extent of (v) the amount of
Available Funds received during the immediately preceding Collection Period in
the Collection Fund (or, if necessary, other Available Funds on deposit in the
Collection Fund as provided in Section 5.04(c) of the Indenture), (w) the amount
transferred from the Department Rebate Fund pursuant to Section 5.06 of the
Indenture, (x) the amount transferred from the Reserve Fund pursuant to Section
5.05(b), (c) and (d) of the Indenture, (y) the amount transferred from the
Capitalized Interest Fund pursuant to Section 5.03 of the Indenture and (z) the
amount transferred from the Prefunding Account of the Acquisition Fund pursuant
to Section 5.02 of the Indenture. The Trustee shall make the following deposits
and distributions in the following order of priority, and the Trustee shall
comply with such instructions:

<TABLE>
<CAPTION>
<S>                                                                            <C>
(i)     (A) The Servicing Fee to the Master Servicer,                            $
                                                                                 ----------
        (B) The Trustee Fee to the Trustee,                                      $
                                                                                 ----------
        (C) The Delaware Trustee Fee to the Delaware Trustee,                    $
                                                                                 ----------
        payments described in (A) through (C) above to be made ratably, without
        preference or priority of any kind, due on the Quarterly Distribution
        Date in each case with such fees remaining unpaid from prior Quarterly
        Distribution Dates (or as applicable from prior Monthly Service Payment
        Dates);

(ii)    (A) The Administration Fee to the Administrator                          $
                                                                                 -----------
        (B) Any unpaid Administration Fees from prior Quarterly Distribution     $
            Dates;                                                               -----------

<PAGE>

(iii)   (A) The Class A-1 Noteholders' Interest Distribution Amount to the       $
            Class A-1 Noteholders,                                               -----------
            The Class A-2 Noteholders' Interest Distribution Amount to the       $
            Class A-2 Noteholders, and                                           -----------
            The Class A-3 Noteholders' Interest Distribution Amount to the       $
            Class A-3 Noteholders, and                                           -----------
            The Class A-4 Noteholders' Interest Distribution Amount to the
            Class A-4 Noteholders, and
        (B) Issuer Derivative Payments (excluding Termination Payments other     $
            than Priority Termination Payments) to the Counterparties, pro       -----------
            rata, without preference or priority of any kind, according to the
            amounts payable to each such party;

(iv)    Unless a Subordinate Notes Interest Trigger has occurred and is
        continuing, the Class B Noteholders' Interest Distribution Amount to     $
        the Class B Noteholders;                                                 -----------

(v)     An amount equal to the unpaid interest accrued on the Financed Student
        Loans subsequent to the Cutoff Date but prior to the Date of Issuance,   $
        until such amount has been paid in full, to the Depositor;               -----------

(v)     (A) The Principal Distribution Amount to the Class A-1 Noteholders       $
            (until paid in full);                                                -----------
        (B) The Principal Distribution Amount to the Class A-2  Noteholders      $
            (until paid in full);                                                -----------
        (C) The Principal Distribution Amount to the Class A-3 Noteholders       $
            (until paid in full);                                                -----------
        (D) The Principal Distribution Amount to the Class A-4 Noteholders       $
            (until paid in full);                                                -----------
        (E) The Principal Distribution Amount to the Class B Noteholders         $
           (until paid in full);                                                 -----------

(vii)   Amounts to be deposited to the Reserve Fund necessary to reinstate the   $
        balance of the Reserve Fund up to the Specified Reserve Fund Balance;    -----------

                                        D-2
<PAGE>
(viii)  Amounts due to the Master Servicer representing the aggregate unpaid     $
        amount of the Carryover Servicing Fee;                                   -----------

(ix)    (A) Unpaid Class B Noteholders' Interest Distribution Amount, and        $
                                                                                 -----------
        (B) the Class B Notes Carry-over Amount (and any accrued interest        $
           thereon) to the Class B Noteholders, and                              -----------

(ix)    Amounts due to the Counterparties, pro rata, without preference or       $
        priority (representing any accrued and unpaid Termination Payments due   -----------
        under any Derivative Product Payments);

(x)     If the Financed Eligible Loans have not been sold pursuant to            $
        Section 10.03 or 10.04 of the Indenture, amounts payable to the          -----------
        Noteholders as an accelerated payment of principal balance on the
        Notes pursuant to Section 5.04(c)(x) of the Indenture; and

(xi)    Remaining amounts released to the Issuer.                                $
                                                                                 -----------
        Total Distributions                                                      $
                                                                                 -----------
        The Available Funds from the immediately preceding Collection Period     $
        on this Quarterly Distribution Date.                                     -----------
        If required, other Available Funds on deposit in the Collection Fund.    $
                                                                                 -----------
        If required, Issuer, Master Servicer, or Subservicer contributions for   $
        Borrower Incentive Program deficiencies.                                 -----------

        The Parity Ratio as of such Quarterly Distribution Date.                         ____%

        The Total Parity Ratio as of such Quarterly Distribution Date.                   ____%

        Specified Reserve Fund Balance for such Quarterly Distribution Date.     $
                                                                                 -----------
        Pool Balance for such Quarterly Distribution Date.                       $
                                                                                 -----------

</TABLE>
FUND TRANSFERS

        Pursuant to this Certificate, if applicable, the Administrator further
hereby directs the Trustee to withdraw from:

               (a) the Prefunding Account of the Acquisition Fund for deposit to
        the Collection Fund (i) an amount equal to $__________, representing the
        amount of insufficient Available Funds in the Collection Fund to make
        the transfers required by Sections 5.04(b) (other than transfers to
        repurchase student loans from the Master Servicer, any Subservicer or
        any Guaranty Agency) of the Indenture and (ii) an amount equal to
        $__________, representing the remaining amount on deposit in the
        Acquisition Fund on July 25, 2008 (or such earlier date as the Trustee
        may be instructed by Issuer Order); and

                                      D-3
<PAGE>

               (b) the Capitalized Interest Fund for deposit to the Collection
        Fund (i) an amount equal to $__________, representing the amount of
        insufficient Available Funds in the Collection Fund to make the
        transfers required by Sections 5.04(b) (other than transfers to
        repurchase student loans from the Master Servicer, any Subservicer or
        any Guaranty Agency) and 5.04(c)(i) through (iv) of the Indenture, and
        (ii) an amount equal to $__________, representing the amount required to
        be transferred to the Collection Fund on such Quarterly Distribution
        Date; and

               (c) the Reserve Fund for deposit to the Collection Fund (i) to
        the extent moneys are not available to make the transfers from the
        Capitalized Interest Fund, an amount equal to $__________, representing
        the amount of insufficient Available Funds in the Collection Fund to
        make the transfers required by Sections 5.04(b) (other than transfers to
        repurchase student loans from the Master Servicer, any Subservicer or
        any Guaranty Agency) and 5.04(c)(i) through (iv) of the Indenture, and
        (ii) an amount equal to $__________, representing the amount on deposit
        in the Reserve Fund in excess of the Specified Reserve Fund Balance.

        The Administrator hereby certifies that the information herein is true
and accurate in all material respects, is in compliance with the provisions of
the Indenture and that the Trustee may conclusively rely on this Certificate
with no further duty to examine or determine the information contained herein.

        IN WITNESS WHEREOF, the Administrator has caused this Certificate to be
duly executed and delivered as of the date written below.

                                      NATIONAL EDUCATION LOAN NETWORK, INC., as
                                      Administrator

                                      By
                                         ---------------------------------------
                                          Authorized Signatory
Date
     -------------------------------

                                      D-4

<PAGE>

                                    EXHIBIT E

                           REPORT TO REGISTERED OWNERS

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