Document:

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                                                                   Exhibit 10.21
                               GUARANTY AGREEMENT
                                 (Subsidiaries)

         WHEREAS, NELNET LOAN SERVICES, INC. and NELNET, INC. (together
"BORROWERS") have entered into that certain Credit Agreement dated January 11,
2002, with BANK OF AMERICA, N.A. (the "BANK") (such Credit Agreement, as it may
hereafter be amended or otherwise modified from time to time, being hereinafter
referred to as the "CREDIT AGREEMENT", and capitalized terms not otherwise
defined herein shall have the same meaning as set forth in the Credit
Agreement);

         WHEREAS, the execution of this Guaranty Agreement is a condition to the
Bank's obligations under the Credit Agreement and an inducement to the other
Secured Parties to extend credit to the Borrowers;

         NOW, THEREFORE, for valuable consideration, the receipt and adequacy of
which are hereby acknowledged, each of the undersigned Subsidiaries and any
Subsidiary hereafter added as a "GUARANTOR" hereto pursuant to a Subsidiary
Joinder Agreement (individually a "GUARANTOR" and collectively the
"GUARANTORS"), hereby irrevocably and unconditionally guarantees to Bank of
America, N.A., as agent for itself and the other Secured Parties (the "AGENT")
the full and prompt payment and performance of the Guaranteed Indebtedness
(hereinafter defined), this Guaranty Agreement being upon the following terms:

         1.       The term "GUARANTEED INDEBTEDNESS", as used herein means all
of the "OBLIGATIONS", as defined in the Credit Agreement and shall include any
and all post-petition interest and expenses (including reasonable attorneys'
fees) whether or not allowed under any bankruptcy, insolvency, or other similar
law; provided that the Guaranteed Indebtedness shall be limited, with respect to
each Guarantor, to an aggregate amount equal to the largest amount that would
not render such Guarantor's obligations hereunder subject to avoidance under
Section 544 or 548 of the United States Bankruptcy Code or under any applicable
state law relating to fraudulent transfers or conveyances.

         2.       This instrument shall be an absolute, continuing, irrevocable
and unconditional guaranty of payment and performance, and not a guaranty of
collection, and each Guarantor shall remain liable on its obligations hereunder
until the payment and performance in full of the Guaranteed Indebtedness. No
set-off, counterclaim, recoupment, reduction, or diminution of any obligation,
or any defense of any kind or nature which either Borrower may have against
Agent, any Secured Party or any other party, or which any Guarantor may have
against either Borrower, Agent, any Secured Party or any other party, shall be
available to, or shall be asserted by, any Guarantor against Agent, any Secured
Party or any subsequent holder of the Guaranteed Indebtedness or any part
thereof or against payment of the Guaranteed Indebtedness or any part thereof.

         3.       If a Guarantor becomes liable for any indebtedness owing by
either Borrower to Agent or any Secured Party by endorsement or otherwise, other
than under this Guaranty Agreement, such liability shall not be in any manner
impaired or affected hereby, and the rights of Agent and the Secured Parties
hereunder shall be cumulative of any and all other rights that Agent and the
Secured Parties may ever have against such Guarantor. The exercise by Agent and
the Secured Parties of any right or remedy hereunder or under any other
instrument, or at law or in equity, shall not preclude the concurrent or
subsequent exercise of any other right or remedy.

<PAGE>

         4.       In the event of default by either Borrower in payment or
performance of the Guaranteed Indebtedness, or any part thereof, when such
Guaranteed Indebtedness becomes due, whether by its terms, by acceleration, or
otherwise, the Guarantors shall, jointly and severally, promptly pay the amount
due thereon to Agent, without notice or demand, in lawful currency of the United
States of America, and it shall not be necessary for Agent or any Secured Party,
in order to enforce such payment by any Guarantor, first to institute suit or
exhaust its remedies against either Borrower or others liable on such Guaranteed
Indebtedness, or to enforce any rights against any collateral which shall ever
have been given to secure such Guaranteed Indebtedness. In the event such
payment is made by a Guarantor, then such Guarantor shall be subrogated to the
rights then held by Agent and any Secured Party with respect to the Guaranteed
Indebtedness to the extent to which the Guaranteed Indebtedness was discharged
by such Guarantor and, in addition, upon payment by such Guarantor of any sums
to Agent and any Secured Party hereunder, all rights of such Guarantor against
Borrowers, any other guarantor or any Collateral arising as a result therefrom
by way of right of subrogation, reimbursement, or otherwise shall in all
respects be subordinate and junior in right of payment to the prior indefeasible
payment in full of the Guaranteed Indebtedness. Each Guarantor also agrees to be
bound by the contribution and subrogation provisions of SECTION 3.7 of the
Credit Agreement.

         5.       If acceleration of the time for payment of any amount payable
by either Borrower under the Guaranteed Indebtedness is stayed upon the
insolvency, bankruptcy, or reorganization of either Borrower, all such amounts
otherwise subject to acceleration under the terms of the Guaranteed Indebtedness
shall nonetheless be payable by the Guarantors hereunder forthwith on demand by
Agent or any Secured Party.

         6.       Each Guarantor hereby agrees that its obligations under this
Guaranty Agreement shall not be released, discharged, diminished, impaired,
reduced, or affected for any reason or by the occurrence of any event,
including, without limitation, one or more of the following events, whether or
not with notice to or the consent of any Guarantor: (a) the taking or accepting
of collateral as security for any or all of the Guaranteed Indebtedness or the
release, surrender, exchange, or subordination of any collateral now or
hereafter securing any or all of the Guaranteed Indebtedness; (b) any partial
release of the liability of any Guarantor hereunder, or the full or partial
release of any other guarantor from liability for any or all of the Guaranteed
Indebtedness; (c) any disability of either Borrower, or the dissolution,
insolvency, or bankruptcy of either Borrower, any Guarantor, or any other party
at any time liable for the payment of any or all of the Guaranteed Indebtedness;
(d) any renewal, extension, modification, waiver, amendment, or rearrangement of
any or all of the Guaranteed Indebtedness or any instrument, document, or
agreement evidencing, securing, or otherwise relating to any or all of the
Guaranteed Indebtedness; (e) any adjustment, indulgence, forbearance, waiver, or
compromise that may be granted or given by Agent or any Secured Party to either
Borrower, any Guarantor, or any other party ever liable for any or all of the
Guaranteed Indebtedness; (f) any neglect, delay, omission, failure, or refusal
of Agent or any Secured Party to take or prosecute any action for the collection
of any of the Guaranteed Indebtedness or to foreclose or take or prosecute any
action in connection with any instrument, document, or agreement evidencing,
securing, or otherwise relating to any or all of the Guaranteed Indebtedness;
(g) the unenforceability or invalidity of any or all of the Guaranteed
Indebtedness or of any instrument, document, or agreement evidencing, securing,
or otherwise relating to any or all of the Guaranteed Indebtedness; (h) any
payment by either Borrower or any other party to Agent or any Secured Party is
held to constitute a preference under applicable bankruptcy or insolvency law or
if for any other reason Agent or any Secured Party is required to refund any
payment or pay the amount thereof to someone else; (i) the settlement or
compromise of any of the Guaranteed Indebtedness; (j) the non-perfection of any
security interest or lien securing any or all of the

<PAGE>

Guaranteed Indebtedness; (k) any impairment of any collateral securing any or
all of the Guaranteed Indebtedness; (l) the failure of Agent or any Secured
Party to sell any collateral securing any or all of the Guaranteed Indebtedness
in a commercially reasonable manner or as otherwise required by law; (m) any
change in the corporate existence, structure, or ownership of either Borrower;
or (n) any other circumstance which might otherwise constitute a defense
available to, or discharge of, either Borrower or any Guarantor (other than
payment of the Guaranteed Indebtedness).

         7.       Each Guarantor represents and warrants to the Agent and the
Secured Parties as follows:

                  (a)      All representations and warranties in the Credit
Agreement relating to it are true and correct as of the date hereof and on each
date the representations and warranties hereunder are restated pursuant to any
of the Loan Documents with the same force and effect as if such representations
and warranties had been made on and as of such date except to the extent that
such representations and warranties relate specifically to another date.

                  (b)      It has, independently and without reliance upon the
Agent or any Secured Party and based upon such documents and information as it
has deemed appropriate, made its own analysis and decision to enter into the
Loan Documents to which it is a party.

                  (c)      It has adequate means to obtain from Borrowers on a
continuing basis information concerning the financial condition and assets of
Borrowers and it is not relying upon the Agent or any Secured Party to provide
(and neither the Agent nor any Secured Party shall have any duty to provide) any
such information to it either now or in the future.

                  (d)      The value of the consideration received and to be
received by each Guarantor as a result of Borrowers' and the Bank's entering
into the Credit Agreement and each Guarantor's executing and delivering the Loan
Documents to which it is a party is reasonably worth at least as much as the
liability and obligation of each Guarantor hereunder, and such liability and
obligation and the Credit Agreement have benefited and may reasonably be
expected to benefit each Guarantor directly or indirectly.

         8.       Each Guarantor covenants and agrees that, as long as the
Guaranteed Indebtedness or any part thereof is outstanding or the Bank has any
commitment under the Credit Agreement, it will comply with all covenants set
forth in the Credit Agreement specifically applicable to it.

         9.       When an Event of Default exists, each Secured Party shall have
the right to set-off and apply against this Guaranty Agreement or the Guaranteed
Indebtedness or both, at any time and without notice to any Guarantor, any and
all deposits (general or special, time or demand, provisional or final) or other
sums at any time credited by or owing from any Secured Party to any Guarantor
whether or not the Guaranteed Indebtedness is then due and irrespective of
whether or not the Agent shall have made any demand under this Guaranty
Agreement. Each Secured Party agrees promptly to notify Borrowers after any such
setoff and application, provided that the failure to give such notice shall not
affect the validity of such setoff and application. The rights and remedies of
the Secured Parties hereunder are in addition to other rights and remedies
(including, without limitation, other rights of set-off) which the Secured
Parties may have.

<PAGE>

         10.      (a)      Each Guarantor hereby agrees that the Subordinated
Indebtedness (as defined below) shall be subordinate and junior in right of
payment to the prior payment in full of all Guaranteed Indebtedness as herein
provided. The Subordinated Indebtedness shall not be payable, and no payment of
principal, interest or other amounts on account thereof, and no properly or
guarantee of any nature to secure or pay the Subordinated Indebtedness shall be
made or given, directly or indirectly by or on behalf of any Debtor (hereafter
defined) or received, accepted, retained or applied by any Guarantor unless and
until the Guaranteed Indebtedness shall have been paid in full in cash; except
that prior to the occurrence and continuance of a Default, a Guarantor shall
have the right to receive payments on the Subordinated Indebtedness made in the
ordinary course of business. When a Default exists, no payments of principal or
interest may be made or given, directly or indirectly, by or on behalf of any
Debtor or received, accepted, retained or applied by any Guarantor unless and
until the Guaranteed Indebtedness shall have been paid in full in cash. If any
sums shall be paid to a Guarantor by any Debtor or any other Person on account
of the Subordinated Indebtedness when such payment is not permitted hereunder,
such sums shall be held in trust by such Guarantor for the benefit of the Agent
and shall forthwith be paid to Agent without affecting the liability of any
Guarantor under this Guaranty Agreement and may be applied by Agent against the
Guaranteed Indebtedness in accordance with the Credit Agreement. Upon the
request of Agent, a Guarantor shall execute, deliver, and endorse to Agent such
documentation as Agent may request to perfect, preserve, and enforce its rights
hereunder. For purposes of this Guaranty Agreement and with respect to a
Guarantor, the term "SUBORDINATED INDEBTEDNESS" means all indebtedness,
liabilities, and obligations of either Borrower or any Obligated Party other
than such Guarantor (Borrowers and such Obligated Parties herein the "DEBTORS")
to such Guarantor, whether such indebtedness, liabilities, and obligations now
exist or are hereafter incurred or arise, or are direct, indirect, contingent,
primary, secondary, several, joint and several, or otherwise, and irrespective
of whether such indebtedness, liabilities, or obligations are evidenced by a
note, contract, open account, or otherwise, and irrespective of the Person or
Persons in whose favor such indebtedness, obligations, or liabilities may, at
their inception, have been, or may hereafter be created, or the manner in which
they have been or may hereafter be acquired by such Guarantor.

                  (b)      Each Guarantor agrees that any and all Liens
(including any judgment liens), upon any Debtor's assets securing payment of any
Subordinated Indebtedness shall be and remain inferior and subordinate to any
and all Liens upon any Debtor's assets securing payment of the Guaranteed
Indebtedness or any part thereof, regardless of whether such Liens in favor of a
Guarantor, Agent or any Secured Party presently exist or are hereafter created
or attached. Without the prior written consent of Agent, no Guarantor shall (i)
file suit against any Debtor or exercise or enforce any other creditor's right
it may have against any Debtor, or (ii) foreclose, repossess, sequester, or
otherwise take steps or institute any action or proceedings (judicial or
otherwise, including without limitation the commencement of, or joinder in, any
liquidation, bankruptcy, rearrangement, debtor's relief or insolvency
proceeding) to enforce any obligations of any Debtor to such Guarantor or any
Liens held by such Guarantor on assets of any Debtor.

                  (c)      In the event of any receivership, bankruptcy,
reorganization, rearrangement, debtor's relief, or other insolvency proceeding
involving any Debtor as debtor, Agent shall have the right to prove any claim
under the Subordinated Indebtedness and to receive directly from the receiver,
trustee or other court custodian all dividends, distributions, and payments made
in respect of the Subordinated Indebtedness until the Guaranteed Indebtedness
has been paid in full in cash. Agent may apply any such dividends,
distributions, and payments against the Guaranteed Indebtedness in accordance
with the Credit Agreement.

<PAGE>

                  (d)      Each Guarantor agrees that all promissory notes,
accounts receivable, ledgers, records, or any other evidence of Subordinated
Indebtedness shall contain a specific written notice thereon that the
indebtedness evidenced thereby is subordinated under the terms of this Guaranty
Agreement.

         11.      Except for modifications made pursuant to the execution and
delivery of a Subsidiary Joinder Agreement (which needs to be signed only by the
Subsidiary party thereto), no amendment or waiver of any provision of this
Guaranty Agreement or consent to any departure by any Guarantor therefrom shall
in any event be effective unless the same shall be in writing and signed by the
Agent. No failure on the part of the Agent or any Secured Party to exercise, and
no delay in exercising, any right, power, or privilege hereunder shall operate
as a waiver thereof; nor shall any single or partial exercise of any right,
power, or privilege hereunder preclude any other or further exercise thereof or
the exercise of any other right, power, or privilege. The remedies herein
provided are cumulative and not exclusive of any remedies provided by law.

         12.      To the extent permitted by law, any acknowledgment or new
promise, whether by payment of principal or interest or otherwise and whether by
either Borrower or others (including any Guarantor), with respect to any of the
Guaranteed Indebtedness shall, if the statute of limitations in favor of a
Guarantor against the Agent or any Secured Party shall have commenced to run,
toll the running of such statute of limitations and, if the period of such
statute of limitations shall have expired, prevent the operation of such statute
of limitations.

         13.      This Guaranty Agreement is for the benefit of the Agent and
the Secured Parties and their successors and assigns, and in the event of an
assignment of the Guaranteed Indebtedness, or any part thereof, the rights and
benefits hereunder, to the extent applicable to the indebtedness so assigned,
may be transferred with such indebtedness. This Guaranty Agreement is binding
not only on each Guarantor, but on each Guarantor's successors and assigns;
provided that no Guarantor may assign its rights or obligations hereunder
without the prior written consent of the Bank.

         14.      Each Guarantor recognizes that the Bank is relying upon this
Guaranty Agreement and the undertakings of each Guarantor hereunder and under
the other Loan Documents to which each is a party in making extensions of credit
to Borrowers under the Credit Agreement and further recognizes that the
execution and delivery of this Guaranty Agreement and the other Loan Documents
to which each Guarantor is a party is a material inducement to the Bank in
entering into the Credit Agreement and continuing to extend credit thereunder.
Each Guarantor hereby acknowledges that there are no conditions to the full
effectiveness of this Guaranty Agreement or any other Loan Document to which it
is a party.

         15.      Any notice or demand to any Guarantor under or in connection
with this Guaranty Agreement or any other Loan Document to which it is a party
shall be deemed effective if given to the Guarantor, care of Borrowers in
accordance with the notice provisions in the Credit Agreement.

         16.      The Guarantors shall, jointly and severally, pay on demand all
reasonable attorneys' fees and all other reasonable costs and expenses incurred
by the Agent in connection with the enforcement or collection of this Guaranty
Agreement.

<PAGE>

         17.      Each Guarantor hereby waives promptness, diligence, notice of
any default under the Guaranteed Indebtedness, demand of payment, notice of
acceptance of this Guaranty Agreement, presentment, notice of protest, notice of
dishonor, notice of the incurring by either Borrower of additional indebtedness,
and all other notices and demands with respect to the Guaranteed Indebtedness
and this Guaranty Agreement.

         18.      The Credit Agreement, and all of the terms thereof, are
incorporated herein by reference, the same as if stated verbatim herein, and
each Guarantor agrees that the Agent may exercise any and all rights granted to
it under the Credit Agreement and the other Loan Documents without affecting the
validity or enforceability of this Guaranty Agreement.

         19.      THIS GUARANTY AGREEMENT EMBODIES THE FINAL, ENTIRE AGREEMENT
OF EACH GUARANTOR, THE AGENT AND THE SECURED PARTIES WITH RESPECT TO EACH
GUARANTOR'S GUARANTY OF THE GUARANTEED INDEBTEDNESS AND SUPERSEDES ANY AND ALL
PRIOR COMMITMENTS, AGREEMENTS, REPRESENTATIONS, AND UNDERSTANDINGS, WHETHER
WRITTEN OR ORAL, RELATING TO THE SUBJECT MATTER HEREOF. THIS GUARANTY AGREEMENT
IS INTENDED BY EACH GUARANTOR, THE AGENT AND THE SECURED PARTIES AS A FINAL AND
COMPLETE EXPRESSION OF THE TERMS OF THE GUARANTY AGREEMENT, AND NO COURSE OF
DEALING AMONG ANY GUARANTOR THE AGENT AND THE SECURED PARTIES, NO COURSE OF
PERFORMANCE, NO TRADE PRACTICES, AND NO EVIDENCE OF PRIOR, CONTEMPORANEOUS OR
SUBSEQUENT ORAL AGREEMENTS OR DISCUSSIONS OR OTHER EXTRINSIC EVIDENCE OF ANY
NATURE SHALL BE USED TO CONTRADICT, VARY, SUPPLEMENT OR MODIFY ANY TERM OF THIS
GUARANTY AGREEMENT. THERE ARE NO ORAL AGREEMENTS AMONG ANY GUARANTOR, THE AGENT
AND THE SECURED PARTIES.

         20.      This Guaranty Agreement shall be governed by, and construed in
accordance with, the laws of the State of Texas and applicable laws of the
United States of America.

         21.      Each Guarantor waives (a) promptness, diligence, and notice of
acceptance of this Guaranty and notice of the incurring of any obligation,
indebtedness, or liability to which this Guaranty applies or may apply and
waives presentment for payment, notice of nonpayment, protest, demand, notice of
protest, notice of intent to accelerate, notice of acceleration, notice of
dishonor, diligence in enforcement, and indulgences of every kind, and (b) the
taking of any other action by the Agent, including without limitation, giving
any notice of default or any other notice to, or making any demand on,
Borrowers, any other guarantor of all or any part of the Guaranteed Indebtedness
or any other party. To the maximum extent lawful, each Guarantor waives all
rights by which it might be entitled to require suit on an accrued right of
action in respect of any Guaranteed Indebtedness or require suit against either
Borrower or others, whether arising under Section 34.02 of the Texas Business
and Commerce Code, as amended (regarding its right to require Agent or Secured
Parties to sue either Borrower on accrued right of action following its written
notice to Agent or Lenders), Section 17.001 of the Texas Civil Practice and
Remedies Code, as amended (allowing suit against it without suit against either
Borrower, but precluding entry of judgment against it before entry of judgment
against Borrower), Rule 31 of the Texas Rules of Civil Procedure, as amended
(requiring Agent or Secured Parties to join either Borrower in any suit against
it unless judgment has been previously entered against such Borrower), or
otherwise.

                  [REMAINDER OF PAGE LEFT INTENTIONALLY BLANK.]

<PAGE>

            EXECUTED as of the date first written above.

                                   GUARANTORS:

NELNET LOAN SERVICES, INC
NELNET, INC
NELNET CORPORATION
NELNET MARKETING SOLUTIONS, INC.
CLASSCREDIT, INC.
NELNET GUARANTEE SERVICES, INC.
INTUITION, INC.
EFS, INC.
EFS SERVICES, INC.
EFS FINANCE CO.

By: /s/ Terry Helmes
    ------------------
    Terry Helmes
    Chief Financial Officer

GUARANTEC, LLP

By: /s/ Chuck Hosea
    ------------------
    Chuck Hosea
    President

NATIONAL HIGHER EDUCATION
LOAN PROGRAM, INC.

By: /s/ Anne Frye
    -------------------
    Anne Frye
    President<PAGE>
                                                                   Exhibit 10.22

                             INTERCREDITOR AGREEMENT

      THIS INTERCREDITOR AGREEMENT (this "AGREEMENT"),dated the 1lth day of
January, 2002, is by and between FARMERS & MERCHANTS INVESTMENT INC. (together
with its successors and assigns, "SUBORDINATED CREDITOR"),BANK OF AMERICA, N.A.,
a national banking association (together with its successors and assigns,
"SENIOR CREDITOR"),and NELNET, INC. ("BORROWER").

                                 R E C I T A L S

      A. Pursuant to the Line of Credit Agreement (the "LINE OF CREDIT
AGREEMENT") dated as of November 15, 2001, between Subordinated Creditor and
Borrower, Subordinated Creditor agreed to make a $30,000,000 line of credit
available to Borrower. The Line of Credit Agreement and all related documents
together with all renewals, extensions, and modifications thereof are referred
to herein as the "SUBORDINATED CREDITOR DOCUMENTS."

      B. Senior Creditor intends to make loans or extend credit to Borrower and
NELnet Loan Services, Inc., pursuant to a Credit Agreement entered into between
Senior Creditor, Borrower, and NELnet Loan Services, Inc. dated as of even date
herewith (as amended, modified or supplemented from time to time hereafter, the
"LOAN AGREEMENT"), and the other Loan Documents. All capitalized terms used
herein and not otherwise defined shall have the meanings assigned thereto in the
Loan Agreement.

      C. Subordinated Creditor acknowledges that the loans or advances of monies
or other extensions of credit to Borrower by Senior Creditor are of value to
Subordinated Creditor.

      D. Senior Creditor is unwilling to make the loans and advances under the
Loan Agreement unless Subordinated Creditor enters into this Agreement rendering
Borrower's payment obligations to Senior Creditor senior in right of payment to
Borrower's payment obligations to Subordinated Creditor.

      NOW, THEREFORE, in order to induce Senior Creditor to make the loans and
advances under the Loan Agreement and in consideration of the promises, the
parties hereto, intending to be legally bound hereby, agree as follows:

      Section 1. Standby; Subordination.

            (a) Subordinated Creditor will not, directly or indirectly, demand,
(including without limitation by commencing or joining with any other creditors
of Borrower in commencing any bankruptcy, reorganization, receivership or
insolvency proceeding against Borrower), take or receive from Borrower or any of
Borrower's Affiliates, by set-off or in any other manner, the whole or any part
of any monies which may now or hereafter be owing by Borrower, or any successor
or assign of Borrower, including, without limitation, a receiver, trustee or
debtor in possession (the term "BORROWER" hereinafter shall include any such
successor or assign of Borrower), to Subordinated Creditor under any of the
Subordinated Creditor Documents (whether such amounts represent principal,
interest, fees, expenses, or any other obligations, whether due or not due,
direct or indirect, absolute or contingent, including, without limitation, the
taking of any negotiable instruments evidencing such amounts) (all such
indebtedness obligations and liabilities being hereinafter included as the
"SUBORDINATED OBLIGATIONS"),nor any security or guaranties for any of the
<PAGE>
foregoing unless and until all of the Obligations, and all other obligations,
liabilities, and indebtedness of Borrower to Senior Creditor, whether now
existing or hereafter arising between Borrower and Senior Creditor, directly, or
acquired outright, conditionally or as collateral security from another by
Senior Creditor, which are related to or arising out of loans, advances, or
extensions of credit to Borrower or any of its Affiliates shall have been fully
paid and satisfied with interest (all such obligations, indebtedness and
liabilities of Borrower to Senior Creditor are hereinafter referred to as the
"SENIOR INDEBTEDNESS") and all financing arrangements between Borrower and
Senior Creditor, including the Commitment, have been terminated.

            (b) Subordinated Creditor agrees and covenants that none of the
Subordinated Creditor Documents shall be modified or amended without Senior
Creditor's prior written consent.

            (c) Notwithstanding anything to the contrary set forth in SECTION
I(A) above, so long as no Default has occurred and is continuing or would exist
after giving effect to any such payment, Borrower may make payments to
Subordinated Creditor of accrued interest on the Subordinated Obligation.
Additionally, so long as (i) no Default has occurred and is continuing, or would
exist after giving effect to any such payment, and (ii) Borrower would be in
compliance with the Pro Forma Fixed Charge Coverage Ratio set forth in SECTION
9.4 of the Loan Agreement on a pro forma basis after giving effect to any such
payment (and Borrower delivers to Senior Creditor written evidence satisfactory
to Senior Creditor of such compliance before any such payment is made), Borrower
may make payments of principal on the Subordinated Obligations.

            Section 2. Senior Creditor Priority; Grant of Authority to Senior
Creditor. In the event of any distribution, division, or application, partial or
complete, voluntary or involuntary, by operation of law or otherwise, of all or
any part of the assets of Borrower or the proceeds thereof to the creditors of
Borrower or readjustment of the obligations and indebtedness of Borrower,
whether by reason of liquidation, bankruptcy, arrangement, receivership,
assignment for the benefit of creditors or any other action or proceeding
involving the readjustment of all or any part of the Subordinated Obligations,
or the application of the assets of Borrower to the payment or liquidation
thereof, or upon the dissolution or other winding up of Borrower's business, or
upon the sale of all or substantially all of Borrower's assets, then, and in any
such event, (i) Senior Creditor shall be entitled to receive payment in full of
any and all of the Senior Indebtedness then owing or then declared to be owing
prior to the payment of all or any part of the Subordinated Obligations, and
(ii) any payment or distribution of any kind or character, whether in cash,
securities or other property other than shares of capital stock of Borrower, as
reorganized and readjusted, or securities of Borrower provided for in any plan
of reorganization or readjustment, the payment of which is subordinated to the
Senior Indebtedness which may at any time be outstanding at least to the extent
that the Subordinated Obligations are subordinated to the Senior Indebtedness
herein, which shall be payable or deliverable upon or with respect to any or all
of the Subordinated Obligations shall be paid or delivered directly to Senior
Creditor for application to any of the Senior Indebtedness, due or not due,
until such Senior Indebtedness shall have first been fully paid and satisfied.
In order to enable Senior Creditor to enforce its rights hereunder in any of the
aforesaid actions or proceedings, Senior Creditor is hereby irrevocably
authorized and empowered to, upon three (3) days' notice to Subordinated
Creditor, after Subordinated Creditor fails to file a proof of claim within
twenty (20) days prior to any claims bar date, make and present for and on
behalf of Subordinated Creditor proofs of claim against Borrower in the full
amount of the Subordinated Obligations and to receive and collect any and all
dividends or other payments or disbursements made thereon in whatever form the
same may be paid or issued and to apply the same on account of any of the Senior
Indebtedness.

                                      -2-
<PAGE>
      Section 3. Payments Received by Subordinated Creditor. Should any payment
or distribution or security or instrument or proceeds thereof be received by
Subordinated Creditor upon or with respect to the Subordinated Obligations,
other than as set forth in SECTION Z(C) above, prior to the satisfaction of all
of the Senior Indebtedness and termination of all financing arrangements between
Borrower and Senior Creditor, Subordinated Creditor shall receive and hold the
same in trust, as trustee, for the benefit of Senior Creditor and shall
forthwith deliver the same to Senior Creditor in precisely the form received
(except for the endorsement or assignment of Subordinated Creditor where
necessary), for application to any of the Senior Indebtedness, due or not due.

      Section 4. Instrument Legend. Any instrument evidencing any of the
Subordinated Obligations shall, on the date hereof, be inscribed with a legend
conspicuously indicating that payment thereof is subordinated to the claims of
Senior Creditor pursuant to the terms of this Agreement, and a certified copy
thereof will be delivered to Senior Creditor on the date hereof. Any instrument
evidencing any of the Subordinated Obligations, or any portion thereof, which is
hereafter executed by Borrower, will, on the date thereof, be inscribed with the
aforesaid legend and a copy thereof will be delivered to Senior Creditor on the
date of its execution or within five (5) days thereafter.

      Section 5. Reimbursement for Expenses: Assignment of claim. Subordinated
Creditor agrees that until the Senior Indebtedness have been paid in full and
satisfied and all financing arrangements between Borrower and Senior Creditor
have been terminated or the termination of this Agreement, such Subordinated
Creditor will not, directly or indirectly, accept or receive the benefit of any
remuneration or reimbursement for expenses from or on behalf of Borrower or any
of its Affiliates, and will not assign or transfer to others any of the
Subordinated Obligations.

      Section 6. Continuing Nature of Subordination. This Agreement shall
continue to be effective until the Senior Indebtedness shall have been fully
discharged and all financing arrangements between Borrower and Senior Creditor
have been terminated or the termination of this Agreement. This is a continuing
agreement of subordination and Senior Creditor may continue, at any time and
without notice to Subordinated Creditor, to extend credit or other financial
accommodations and loan monies to or for the benefit of Borrower or any of its
Affiliates on the faith hereof until this Agreement shall cease to be effective
as provided in the preceding sentence of this Section.

      Section 7. Additional Agreements Between Senior Creditor and Borrower or
NELnet Loan Services, Inc. Senior Creditor, at any time and from time to time
may enter into such agreement or agreements with Borrower and/or any of its
Affiliates as Senior Creditor may deem proper, including without limitation
extending the time of payment of or renewing or otherwise altering the terms of
all or any of the Senior Indebtedness or affecting the security underlying any
or all of the Senior Indebtedness, and may exchange, sell, release, surrender or
otherwise deal with any such security, without in any way thereby impairing or
affecting this Agreement.

      Section 8. Subordinated Creditor's Waivers. All of the Senior Indebtedness
shall be deemed to have been made or incurred in reliance upon this Agreement.
Subordinated Creditor expressly waives all notices of the acceptance by Senior
Creditor of the subordination and other provisions of this Agreement and all
other notices not specifically required pursuant to the terms of this Agreement
whatsoever, and Subordinated Creditor expressly waives reliance by Senior
Creditor upon the subordination and other agreements contained herein.
Subordinated Creditor agrees that Senior Creditor has made no warranties or
representations with respect to the due execution, legality, validity,
completeness or enforceability of the Loan Agreement, or the collectibles of the
Senior Indebtedness, that Senior Creditor shall be entitled to

                                      -3-
<PAGE>
manage and supervise loans to Borrower and its Affiliates in accordance with
applicable law and its usual practices, modified from time to time as Senior
Creditor deems appropriate under the circumstances, without regard to the
existence of any rights that Subordinated Creditor may now or hereafter have in
or to any of the assets of Borrower or any of its Affiliates, and that Senior
Creditor shall have no liability to Subordinated Creditor for, and Subordinated
Creditor waives any claim which Subordinated Creditor may now or hereafter have
against Senior Creditor arising out of, any and all actions which Senior
Creditor, takes or omits to take (including, without limitation, actions with
respect to the creation, perfection or continuation of liens or security
interests in collateral or security, actions with respect to the occurrence of
default, actions with respect to the foreclosure upon, sale, release, or
depreciation of, or failure to realize upon, any collateral or security and
actions with respect to the collection of any claim for all or any part of the
Senior Indebtedness from any account debtor, guarantor or any other party and
actions with respect to any bankruptcy proceeding or the extension of credit by
Senior Creditor to Borrower or any of its Affiliates in any such proceeding)
with respect to the Loan Agreement, or any other agreement related thereto or to
the collection of the Senior Indebtedness or the valuation, use, protection or
release of collateral or security for or guaranties of the Senior Indebtedness.

      Section 9. Senior Creditor's Waivers. No waiver shall be deemed to be made
by Senior Creditor of any of its rights hereunder, unless the same shall be in
writing signed on behalf of Senior Creditor, and each waiver, if any, shall be a
waiver only with respect to the specific instance involved and shall in no way
impair the rights of Senior Creditor or the obligations of Subordinated Creditor
to Senior Creditor in any other respect at any other time.

      Section 10. Information Concerning Financial Condition of Borrower.
Subordinated Creditor hereby assumes responsibility for keeping itself informed
of the financial condition of Borrower, any and all endorsers and any and all
guarantors of the Senior Indebtedness and the Subordinated Obligations and of
all other circumstances bearing upon the risk of nonpayment of the Senior
Indebtedness and the Subordinated Obligations that diligent inquiry would
reveal, and Subordinated Creditor hereby agrees that Senior Creditor shall have
no duty to advise Subordinated Creditor of information known to Senior Creditor
regarding such condition or any such circumstances. In the event that Senior
Creditor, in its sole discretion, undertakes, at any time or from time to time,
to provide any such information to Subordinated Creditor, Senior Creditor shall
be under no obligation (i) to provide any such information to Subordinated
Creditor on any subsequent occasion or (ii) to undertake any investigation and
shall be under no obligation to disclose any other information, including any
other information relating to the information provided which, pursuant to
accepted or reasonable commercial finance practices, Senior Creditor wishes to
maintain confidential. Subordinated Creditor hereby agrees that all payments
received by Senior Creditor may be applied, reversed, and reapplied, in whole or
in part, to any of the Senior Indebtedness, as Senior Creditor, in its sole
discretion, deems appropriate and assents to any extension or postponement of
the time of payment of the Senior Indebtedness or to any other indulgence with
respect thereto, to any substitution, exchange or release of collateral which
may at any time secure the Senior Indebtedness and to the addition or release of
any other party or person primarily or secondarily liable therefor.

      Section 11. Priorities. The subordinations and priorities specified
hereinabove are applicable irrespective of the time or order of attachment or
perfection of any security interest or other interests referred to herein, the
time or order of filing of financing statements or mortgages, the acquisition of
purchase money or other security interests, or the time of giving or failure to
give notice of the acquisition or expected acquisition of purchase money or
other security interests. The subordinations and priorities specified herein are
not conditioned upon the nonavoidability or perfection of Senior Creditor's
security interests in any collateral for the Senior Indebtedness.

                                      -4-
<PAGE>
      Section 12. Governing Law; Successors and Assigns. This Agreement has been
delivered and accepted at and shall be deemed to have been made at Dallas,
Texas, and shall be interpreted, and the rights and liabilities of the parties
hereto determined, in accordance with the internal laws (as compared to
conflicts of law provisions) of the State of Texas. This Agreement shall inure
to the benefit of the successors and assigns of Senior Creditor. The provisions
of this Agreement are solely for the benefit of and shall bind and benefit
Senior Creditor and Subordinated Creditor and their respective successors and
assigns, and no other person, firm, entity or corporation shall have any right,
benefit, priority or interest under, or because of the existence of such
provisions. This Agreement may be executed in counterparts, all of which taken
together shall constitute one and the same original.

      Section 13. Section Titles. The section titles contained in this Agreement
are and shall be without substantive meaning or content of any kind whatsoever
and are not a part of the agreement among the parties hereto.

      Section 14. Representations and Warranties.

      Subordinated Creditor represents and warrants to Senior Creditor that:

            (a) Subordinated Creditor has full power, authority and legal right
to execute, deliver and perform this Agreement, and the execution, delivery and
performance of this Agreement will not violate any provision of any instrument
or agreement to which Subordinated Creditor is a party or by which it or any of
its properties is subject or bound;

            (b) no consent, license, approval or authorization of, or
registration or declaration with, any governmental instrumentality, domestic or
foreign, is required in connection with the execution, delivery or performance
by Subordinated Creditor of this Agreement;

            (c) this Agreement constitutes the legal, valid and binding
obligation of Subordinated Creditor and is enforceable against Subordinated
Creditor in accordance with its terms;

            (d) Subordinated Creditor has provided Senior Creditor with true,
correct and complete copies of its Subordinated Creditor's Documents, as now in
effect;

            (e) as of the date hereof, the total principal amount of the
Subordinated Obligations owing to Subordinated Creditor is correctly set forth
on EXHIBIT A hereto;

            (f) Subordinated Creditor is the lawful owner of the Subordinated
Obligations owing to it and no part thereof is subject to any defense, offset or
counterclaim;

            (g) Subordinated Creditor has not heretofore assigned or transferred
any of the Subordinated Obligations owing to it, or any interest therein; and

            (h) Subordinated Creditor has not heretofore entered into an
agreement similar to this Agreement in respect of the Subordinated Obligations
owing to it.

      Section 15. Rights Cumulative. No failure to exercise, and no delay in
exercising on the part of Senior Creditor of any right, power or privilege under
this Agreement shall operate as a waiver thereof; nor shall any single or
partial exercise of any right, power or privilege under this Agreement preclude
any

                                      -5-
<PAGE>
other or further exercise thereof or the exercise of any other right, power or
privilege. The rights and remedies provided in this Agreement and in any
agreement relating to any of the Senior Indebtedness and all other agreements,
instruments and documents referred to in any of the foregoing are cumulative and
shall not be exclusive of any rights or remedies provided under such agreement,
instrument or document or by law. Senior Creditor is hereby authorized to demand
specific performance of this Agreement, whether or not Borrower shall have
complied with the provisions hereof applicable to it, at any time when
Subordinated Creditor shall have failed to comply with any provision hereof
applicable to it. To the extent permitted by applicable law, Subordinated
Creditor hereby irrevocably waives any defense based on the adequacy of a remedy
at law which might be asserted as a bar to the remedy of specific performance
hereof in any action brought therefor by Senior Creditor.

      Section 16. Further Assurances. Subordinated Creditor agrees to execute
and deliver such further documents and to do such other acts and things as
Senior Creditor may reasonably request in order to fully effectuate the purposes
of this Agreement.

      Section 17. Notice of Default and Certain Events. Subordinated Creditor
agrees to give Senior Creditor notice of any of the following:

            (a) the occurrence of any "default" or "event of default" under any
Subordinated Creditor Document; or

            (b) the termination, by its terms, or otherwise, of the Line of
Credit Agreement.

      Section 18. Notices. All notices, requests and demands to or upon the
respective parties hereto shall be in writing delivered by hand delivery,
reputable overnight courier service or certified mail, return receipt requested,
with charges prepaid, addressed as follows:

     If to Senior Creditor, to:               Bank of America, N.A.
                                              901 Main Street, 66th Floor
                                              Dallas, Texas 75283-1000
                                              Attention: Shelly K. Harper
                                              Telecopy No.: (214) 209-

     If to Subordinated Creditor, to:        Farmers & Merchants Investment Inc.
                                             6801 South 27th Street
                                             Lincoln, Nebraska 68512
                                             Attention: Michael S. Dunlap
                                             Telecopy No: (402) 323-1286

or in accordance with the last unrevoked written direction from the applicable
party to the other party hereto. All notices shall be effective when hand
delivered, one business day after sent by reputable overnight courier or three
(3) business days after sent by certified mail, return receipt requested.

      Section 19. Severability. The provisions of this Agreement are independent
of and separate from each other. If any provision hereof shall for any reason be
held invalid or unenforceable, it is the intent of the parties that such
invalidity or unenforceability shall not affect the validity or enforceability
of any other provision hereof, and that this Agreement shall be construed as if
such invalid or unenforceable provision had never been contained herein.

                                      -6-
<PAGE>
      IN WITNESS WHEREOF, this Agreement has been executed and delivered by the
parties hereto on the date first above written.

 SENIOR CREDITOR:                            SUBORDINATED CREDITOR:

 BANK OF AMERICA, N.A.,                      FARMERS & MERCHANTS INVESTMENT INC.

 By: /s/ Shelly K. Harper                    By: /s/ Mike Dunlap
     -------------------------------             --------------------------
     Shelly K. Harper, Principal                 Name:  Mike Dunlap
                                                 Title: President

                   SIGNATURE PAGE TO INTERCREDITOR AGREEMENT
<PAGE>
CONSENTED AND AGREED TO:

BORROWER:

NELNET, INC.

BY: /s/ Terry J. Heimes
    -------------------------------------
    Terry J. Heimes, Vice President

                    SIGNATURE PAGE TO INTERCREDITOR AGREEMENT

<PAGE>
                                         EXHIBIT A

Principal Balance of Subordinated Obligations: $29,160,000

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