Document:

Exhibit 10.1

 

THIRD AMENDMENT TO
AMENDED AND RESTATED CREDIT AGREEMENT

 

This THIRD AMENDMENT TO AMENDED AND RESTATED CREDIT
AGREEMENT (this “Amendment”)
is entered into effective as of April 14, 2005 (the “Amendment Effective Date”),
among ENBRIDGE ENERGY PARTNERS, L.P., a Delaware limited partnership, as
borrower (the “Borrower”),
the financial institutions party to the Credit Agreement hereinafter referenced
(collectively, the “Lenders”),
and BANK OF AMERICA, N.A., as administrative agent (in such capacity, the “Administrative Agent”)
and as L/C Issuer (in such capacity, the “L/C Issuer”).

 

WHEREAS, the Borrower, the Lenders, the Administrative
Agent, and the other agents named therein are parties to that certain Amended
and Restated Credit Agreement dated as of January 24, 2003, as amended by
that certain First Amendment dated as of January 12, 2004 and that certain
Second Amendment (the “Second
Amendment”) dated as of April 26, 2004 (as amended, the “Credit Agreement”);

 

WHEREAS, the Borrower, the Administrative Agent and the
Lenders have agreed that the Credit Agreement be further amended and modified
to effect the matters described in Section 2 below.

 

NOW, THEREFORE, for good and valuable consideration, the
receipt and sufficiency of which is hereby acknowledged, the parties hereto
hereby agree as follows:

 

SECTION 1.                                Definitions.  Unless otherwise defined in this Amendment,
terms used in this Amendment which are defined in the Credit Agreement shall
have the meanings assigned to such terms in the Credit Agreement.  The interpretive provisions set forth in Section 1.02
of the Credit Agreement shall apply to this Amendment.

 

SECTION 2.                                Amendments to the Credit
Agreement.  Subject to
satisfaction of the conditions precedent set forth in Section 3 of
this Amendment, effective as of the Amendment Effective Date, the Credit
Agreement is hereby amended as follows:

 

(a)                                  The definition of “Applicable Rate” set forth
in Section 1.01 of the Credit Agreement is hereby amended by
deleting the chart set forth therein and replacing it with the following:

 

Applicable Rate

 

	
  Pricing Level

  	
   

  	
  Debt Ratings
  

  S&P/Moody’s

  	
   

  	
  Facility

  Fee Rate

  	
   

  	
  Applicable
  Rate for 

  Eurodollar Loans 

  and Applicable Rate

  for Letters of Credit

  	
   

  	
  Applicable 

  Rate for

  Base Rate 

  Loans

  	
   

  	
  Utilization 

  Fee Rate

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  1

  	
   

  	
  A/A2 or higher

  	
   

  	
  .070

  	
  %

  	
  .180

  	
  %

  	
  -0-

  	
   

  	
  .100

  	
  %

  
	
  2

  	
   

  	
  A-/A3

  	
   

  	
  .080

  	
  %

  	
  .220

  	
  %

  	
  -0-

  	
   

  	
  .100

  	
  %

  
	
  3

  	
   

  	
  BBB+/Baa1

  	
   

  	
  .100

  	
  %

  	
  .300

  	
  %

  	
  -0-

  	
   

  	
  .100

  	
  %

  
	
  4

  	
   

  	
  BBB/Baa2

  	
   

  	
  .125

  	
  %

  	
  .375

  	
  %

  	
  -0-

  	
   

  	
  .125

  	
  %

  
	
  5

  	
   

  	
  BBB-/Baa3

  	
   

  	
  .150

  	
  %

  	
  .600

  	
  %

  	
  -0-

  	
   

  	
  .125

  	
  %

  
	
  6

  	
   

  	
  Lower than BBB-/Baa3 or unrated

  	
   

  	
  .200

  	
  %

  	
  .800

  	
  %

  	
  -0-

  	
   

  	
  .125

  	
  %

  

 

 

(b)                                 The following definitions are hereby added to Section 1.01
of the Credit Agreement:

 

“Administrative Questionnaire”
means an Administrative Questionnaire in the form supplied by the
Administrative Agent to be completed by the Lenders.

 

“Borrower Materials” has the
meaning specified in Section 6.02.

 

“Defaulting Lender” means
any Lender that (a) has failed to fund any portion of the Loans or
participations in L/C Obligations required to be funded by it hereunder within
one Business Day following the date required to be funded by it hereunder,
unless cured, (b) has otherwise failed to pay over to the Administrative
Agent or any other Lender any other amount required to be paid by it hereunder
within one Business Day following the date when due, unless cured or the
subject of a good faith dispute, or (c) has been deemed insolvent or
become the subject of a bankruptcy or insolvency proceeding.

 

(c)                                  The definition of “Eurodollar Rate” set forth
in Section 1.01 of the Credit Agreement is hereby amended to read
as follows:

 

“Eurodollar Rate” means, for
any Interest Period with respect to a Eurodollar Rate Loan, the rate per annum
equal to the British Bankers Association LIBOR Rate (“BBA LIBOR”), as
published by Reuters (or other commercially available source providing
quotations of BBA LIBOR as designated by the Administrative Agent from time to
time) at approximately 11:00 a.m., London time, two Business Days prior to
the commencement of such Interest Period, for Dollar deposits (for delivery on
the first day of such Interest Period) with a term equivalent to such Interest
Period.  If such rate is not available at
such time for any reason, then the “Eurodollar Rate” for such Interest Period
shall be the rate per annum determined by the Administrative Agent to be the
rate at which deposits in Dollars for delivery on the first day of such
Interest Period in same day funds in the approximate amount of the Eurodollar
Rate Loan being made, continued or converted by Bank of America and with a term
equivalent to such Interest Period would be offered by the London Branch of the
financial institution then serving as the Administrative Agent (or if such
financial institution has no London Branch, by the London Branch of a major
financial institution which is reasonably selected by the Administrative Agent
and reasonably acceptable to the Borrower) to major banks in the London
interbank eurodollar market at their request at approximately 11:00 a.m.
(London time) two Business Days prior to the commencement of such Interest
Period.”

 

(d)                                 The definition of “Letter of Credit Sublimit”
set forth in Section 1.01 of the Credit Agreement is hereby amended
by deleting “$100,000,000” and inserting “$175,000,000” in lieu thereof.

 

(e)                                  The definition of “L/C Obligations” is
amended by adding the following sentence thereto:  “For purposes of computing the undrawn face
amount of any Letter of Credit, the face amount of such Letter of Credit shall
be determined in accordance with Section 1.06.”

 

(f)                                    The definition of “Maturity Date” set forth
in Section 1.01 of the Credit Agreement is hereby amended as
follows:  the definition of “Scheduled
Maturity Date” as set forth therein is hereby amended by replacing “April 26,
2007” with “April 26, 2010”.

 

(g)                                 The following definition is hereby added to Section 1.01
of the Credit Agreement:

 

“Platform” has the meaning
specified in Section 6.02.

 

“Public Lender” has the
meaning specified in Section 6.02.

 

2

 

(h)                                 A new Section 1.06 is hereby added to
the Credit Agreement as follows:

 

“1.06                  Letter of Credit Amounts.  Unless
otherwise specified herein, the amount of a Letter of Credit at any time shall
be deemed to be the stated amount of such Letter of Credit in effect at such
time; provided, however, that with respect to any Letter of Credit that, by its
terms or the terms of any related Letter of Credit Application or other
document related thereto which has been entered into by the Borrower and the LC
Issuer, provides for one or more automatic increases in the stated amount
thereof, the amount of such Letter of Credit shall be deemed to be the maximum
stated amount of and available under such Letter of Credit after giving effect
to each such increase, whether or not such maximum stated amount is in effect
at such time, other than as a result of the expiration of the applicable Letter
of Credit.”

 

(i)                                     Section 2.04(a)(ii) of the Credit Agreement is hereby amended by
replacing the period at the end of subsection (E) with “; or” and
adding the following new clause (F):

 

“(F)                           a default of any Lender’s obligations to fund under Section 2.04(c) exists
or any Lender is at such time a Defaulting Lender hereunder, unless the L/C
Issuer has entered into satisfactory arrangements with the Borrower or such
Lender to eliminate the L/C Issuer’s risk with respect to such Lender.”

 

(j)                                     Section 2.04(i) of the Credit Agreement is hereby amended by adding
the following sentence to the end thereof: 
“For purposes of computing the “actual daily maximum amount available to
be drawn” under any Letter of Credit, the amount of such Letter of Credit shall
be determined in accordance with Section 1.06.”

 

(k)                                  Section 2.10(b) of the Credit Agreement (Utilization Fee) is
hereby amended by deleting “33-1/3%” and inserting “50%” in lieu thereof.

 

(l)                                     Section 2.10(c) of the Credit Agreement (Other Fees) is
hereby amended by deleting the last sentence thereof (which was added pursuant
to the Second Amendment) and inserting the following sentence at the end
thereof:  “The term ‘Agent/Arranger Fee
Letter’ shall include the letter agreement dated April 4, 2005 between the
Borrower and the Arranger.”

 

(m)                               Section 2.16 (Increase in Commitments) is hereby added to the Credit Agreement
to read as follows:

 

“2.16                  Increase in Commitments.

 

(a)                                  Request for Increase.  Provided
there exists no Default or Event of Default, upon (1) notice to the
Administrative Agent (which shall promptly notify the Lenders), and (2) contemporaneous
notice (with copy thereof to the Administrative Agent) to Persons not then
Lenders (each such Person, a “Proposed Lender”), the Borrower shall have the
right to effectuate from time to time and at any time, in accordance with the
terms hereof, an increase in the aggregate amount of the then Commitments
provided that (i) the aggregate Commitments as so increased may not exceed
$1,000,000,000, and (ii) any such request for an increase shall be in a
minimum amount of $10,000,000, and in multiples of $5,000,000 in excess
thereof.  At the time of sending such
notices, the Borrower (in consultation with the Administrative Agent) shall
specify the time period within which each Lender and Proposed Lender is
requested to respond (which shall in no event be less than ten Business Days
from the date of delivery of such notice to the Lenders).

 

3

 

(b)                                 Lender Elections to Increase.  Each Lender
shall notify the Administrative Agent and the Borrower within such time period
whether or not it agrees to increase its Commitment and, if so, whether by an
amount equal to, greater than, or less than its Pro Rata Share (as it existed
immediately prior to such requested increase) of such requested increase.  Each Proposed Lender shall notify the
Administrative Agent and the Borrower within such time period whether or not it
agrees to participate in such increased amount of the aggregate Commitments,
and at what amount it proposes to participate in such increased amount.  Unless otherwise agreed by the Borrower, any
Lender or Proposed Lender not responding within such time period shall be
deemed to have declined to increase its Commitment, or participate in the
increase in the aggregate amount of the Commitments, as the case may be.

 

(c)                                  Notification by Administrative Agent.  The
Administrative Agent shall notify the Borrower and each Lender and Proposed
Lender of the Lenders’ and Proposed Lenders’ responses to each request made
hereunder.

 

(d)                                 Effective Date and Allocations.  If the
aggregate amount of Commitments are increased in accordance with this Section,
the Administrative Agent and the Borrower shall determine the respective
effective date thereof (the “Increase Effective Date”) and the final
allocation of such increase.  The
Administrative Agent shall promptly notify the Lenders and the Proposed Lenders
of such final allocation of such increase and such Increase Effective Date.

 

(e)                                  Conditions to Effectiveness of Increase.  As
conditions precedent to each increase, (1) the Borrower shall deliver to
the Administrative Agent a certificate of a Responsible Officer dated as of the
applicable Increase Effective Date (i) certifying and attaching the
resolutions adopted by the Borrower authorizing such increase, and (ii) certifying
that, before and after giving effect to such increase, (A) the
representations and warranties of the Borrower contained in Article V
of the Credit Agreement and the other Loan Documents are true and correct on
and as of such applicable Increase Effective Date, except to the extent that
such representations and warranties specifically refer to a different date, in
which case they are true and correct as of such earlier date, and (B) no
Default or Event of Default exists, and (2) each Proposed Lender that is
becoming a Lender shall (A) be subject to the approval of the
Administrative Agent and the L/C Issuer, which approvals shall not be
unreasonably withheld or delayed, and (B) execute and deliver a joinder
agreement in form and substance reasonably satisfactory to the Administrative
Agent, the L/C Issuer and the Borrower. 
The Borrower shall prepay any Loans outstanding on such applicable
Increase Effective Date (and pay any additional amounts required pursuant to Section 3.05)
to the extent necessary to keep the outstanding Loans ratable with the Pro Rata
Shares arising from any nonratable increase in the Commitments under this Section and
in effect after giving effect thereto.

 

(f)                                    Conflicting Provisions.  This Section shall
supersede any provisions in Sections 2.14 or 10.01 to the
contrary.”

 

(n)                                 Section 6.02 of the Credit Agreement (Certificates; Other Information) is
hereby amended by adding the following to the end thereof:

 

“Documents required to be delivered
pursuant to Section 6.01(a) or (b) or Section 6.02(c) (to
the extent any such documents are included in materials otherwise filed with
the Securities and Exchange Commission) may be delivered electronically and if
so delivered, shall be deemed to have been delivered on the date (i) on
which the Borrower posts such documents, or provides a link thereto, on the
Borrower’s website on the Internet at the website address listed on Schedule 10.02,
and, in either case, notifies the Administrative Agent by email of such posting
or link; or (ii) on which such documents are posted on the Borrower’s behalf
on an Internet or intranet 

 

4

 

website, if any, to which each Lender and the
Administrative Agent have access (whether a commercial, third-party website or
whether sponsored by the Administrative Agent), whichever date shall first
occur.  Notwithstanding anything
contained herein, in every instance the Borrower shall be required to provide
paper copies of the Compliance Certificates required by Section 6.02(b) to
the Administrative Agent.  Except for such
Compliance Certificates, the Administrative Agent shall have no obligation to
request the delivery or to maintain copies of the documents referred to above,
and in any event shall have no responsibility to monitor compliance by the
Borrower with any such request for delivery, and each Lender shall be solely
responsible for requesting delivery to it or maintaining its copies of such
documents.

 

The Borrower hereby acknowledges
that (a) the Administrative Agent will make available to the Lenders and
the L/C Issuer materials and/or information provided by or on behalf of the
Borrower hereunder (collectively, “Borrower Materials”) by posting the
Borrower Materials on IntraLinks or another similar electronic system (the “Platform”)
and (b) certain of the Lenders may be “public-side” Lenders (i.e., Lenders that do not wish to receive
material non-public information with respect to the Borrower or its securities)
(each, a “Public Lender”).  The
Borrower hereby agrees that so long as the Borrower is the issuer of any
outstanding debt or equity securities that are registered or issued pursuant to
a private offering or is actively contemplating issuing any such securities (w)
all Borrower Materials that are to be made available to Public Lenders shall be
clearly and conspicuously marked “PUBLIC” on the first page thereof; (x)
by so marking Borrower Materials “PUBLIC,” the Borrower shall be deemed to have
authorized the Administrative Agent, the L/C Issuer and the Lenders to treat
such Borrower Materials as not containing any material non-public information
with respect to the Borrower or its securities for purposes of United States
Federal and state securities laws (provided, however, that to the
extent such Borrower Materials constitute Information, they shall be treated as
set forth in Section 10.08); (y) all such Borrower Materials so
marked “PUBLIC” are permitted to be made available through a portion of the
Platform designated “Public Investor;” and (z) the Administrative Agent shall
be entitled to treat any such Borrower Materials that are not so marked “PUBLIC”
as being suitable only for posting on a portion of the Platform not designated “Public
Investor” and thus unavailable to a Public Lender.  Notwithstanding the foregoing, the Borrower
shall be under no obligation to mark any Borrower Materials “PUBLIC.”

 

(o)                                 Section 7.01(m) of the Credit Agreement (Liens) is hereby amended
by inserting the following words before the second comma (after the words “other
Liens”): “securing Indebtedness”.

 

(p)                                 Section 10.02 (Notices and Other Communications; Facsimile Copies) is hereby
amended by deleting subsections (a) and (c), redesignating subsections
(b) as subsection (e), redesignating subsection (d) as
subsection (f), and adding new subsections (a), (b), (c) and (d) as
follows:

 

“(a)                            Notices Generally.  Except in the case of notices and
other communications expressly permitted to be given by telephone (and except
as provided in subsection (b) below), all notices and other
communications provided for herein shall be in writing and shall be delivered
by hand or overnight courier service, mailed by certified or registered mail or
sent by telecopier as follows, and all notices and other communications
expressly permitted hereunder to be given by telephone shall be made to the applicable
telephone number, as follows:

 

(i)                                     if to the Borrower, the Administrative Agent and the
L/C Issuer: to the address, telecopier number, electronic mail address or
telephone number specified for such Person on Schedule 10.02;

 

5

 

(ii)                                  in the case of notices by the Administrative Agent or
the L/C Issuer to a Lender: to the address, telecopier number, electronic mail
address or telephone number specified in its Administrative Questionnaire; and

 

(iii)                               in the case of notices by the Borrower to a Lender:
c/o the Administrative Agent, at the address, telecopier number, electronic
mail address or telephone number specified for the Administrative Agent on Schedule 10.02.

 

Notices sent by hand or overnight courier service, or
mailed by certified or registered mail, shall be deemed to have been given when
received; notices sent by telecopier shall be deemed to have been given when
sent (except that, if not given during normal business hours for the recipient,
shall be deemed to have been given at the opening of business on the next
business day for the recipient).  Notices
delivered through electronic communications to the extent provided in subsection (b) below,
shall be effective as provided in such subsection (b).

 

(b)                                 Electronic Communications.  Notices and
other communications to the Lenders and the L/C Issuer hereunder may be
delivered or furnished by electronic communication (including e-mail and
Internet or intranet websites) pursuant to procedures approved by the
Administrative Agent, provided that the foregoing shall not apply to
notices to any Lender or the L/C Issuer pursuant to Article II if
such Lender or the L/C Issuer, as applicable, has notified the Administrative
Agent that it is incapable of receiving notices under such Article by
electronic communication.  The
Administrative Agent or the Borrower may, in its discretion, agree to accept
notices and other communications to it hereunder by electronic communications
pursuant to procedures approved by it, provided that approval of such
procedures may be limited to particular notices or communications.

 

Unless the Administrative Agent
otherwise prescribes, (i) notices and other communications sent to an
e-mail address shall be deemed received upon the sender’s receipt of an
acknowledgement from the intended recipient (such as by the “return receipt
requested” function, as available, return e-mail or other written
acknowledgement), provided that if such notice or other communication is
not sent during the normal business hours of the recipient, such notice or
communication shall be deemed to have been sent at the opening of business on
the next business day for the recipient, and (ii) notices or
communications posted to an Internet or intranet website shall be deemed
received upon the deemed receipt by the intended recipient at its e-mail
address as described in the foregoing clause (i) of notification that
such notice or communication is available and identifying the website address
therefor.

 

(c)                                  The Platform.  THE PLATFORM IS PROVIDED “AS
IS” AND “AS AVAILABLE.”  THE
AGENT-RELATED PERSONS (AS DEFINED BELOW) DO NOT WARRANT THE ACCURACY OR
COMPLETENESS OF THE BORROWER MATERIALS OR THE ADEQUACY OF THE PLATFORM, AND
EXPRESSLY DISCLAIM LIABILITY FOR ERRORS IN OR OMISSIONS FROM THE BORROWER
MATERIALS.  NO WARRANTY OF ANY KIND,
EXPRESS, IMPLIED OR STATUTORY, INCLUDING ANY WARRANTY OF MERCHANTABILITY,
FITNESS FOR A PARTICULAR PURPOSE, NON-INFRINGEMENT OF THIRD PARTY RIGHTS OR FREEDOM
FROM VIRUSES OR OTHER CODE DEFECTS, IS MADE BY ANY AGENT PARTY IN CONNECTION
WITH THE BORROWER MATERIALS OR THE PLATFORM. 
In no event shall the Administrative Agent or any Agent-Related Person
have any liability to the Borrower, any Lender, the L/C Issuer or any other
Person for losses, claims, damages, liabilities or expenses of any kind
(whether in tort, contract or otherwise) arising out of the Borrower’s or the
Administrative Agent’s transmission of Borrower Materials through the Internet,
except to the extent that such losses, claims, damages, liabilities or expenses
are determined by a court of competent jurisdiction by a final and 

 

6

 

nonappealable judgment to have resulted from the gross
negligence or willful misconduct of such Agent Party; provided, however,
that in no event shall any Agent-Related Person have any liability to the
Borrower, any Lender, the L/C Issuer or any other Person for indirect, special,
incidental, consequential or punitive damages (as opposed to direct or actual
damages).

 

(d)                                 Change of Address, Etc.  Each of the
Borrower, the Administrative Agent and the L/C Issuer may change its address, telecopier, e-mail address or telephone number for notices
and other communications hereunder by notice to the other parties hereto.  Each Lender may change its address, telecopier, e-mail address or telephone number for notices
and other communications hereunder by notice to the Borrower, the
Administrative Agent and the L/C Issuer. 
In addition, each Lender agrees to notify the Administrative Agent from
time to time to ensure that the Administrative Agent has on record (i) an
effective address, contact name, telephone number, telecopier
number and electronic mail address to which notices and other communications
may be sent and (ii) accurate wire instructions for such Lender.”

 

SECTION 3.                                Conditions of Effectiveness.  The amendments to the Credit Agreement set
forth in Section 2 of
this Amendment shall be effective on the Amendment Effective Date, provided
that the Administrative Agent shall have received the following:

 

(a)                                  a counterpart of this Amendment executed by each of
the parties hereto (which may be by telecopy transmission);

 

(b)                                 such certificates of resolutions or other action,
incumbency certificates and/or other certificates of a Responsible Officer as
the Administrative Agent may reasonably require to establish the identities of
and verify the authority and capacity of each Responsible Officer thereof
authorized to act as a Responsible Officer in connection with this Amendment;

 

(c)                                  a certificate from the appropriate governmental
authority in the Borrower’s state of organization evidencing that the Borrower
is in good standing, and a certificate of a Responsible Officer certifying that
no amendments have been made to the Borrower’s Organization Documents since January 24,
2003, or if such amendments have been made, certifying a copy of such
amendments;

 

(d)                                 a certificate of a Responsible Officer certifying
that there has been no event or circumstance since the date of the financial
statements dated as of December 31, 2004 delivered pursuant to Section 6.01(a) of
the Credit Agreement which has or could reasonably be expected to have a
Material Adverse Effect;

 

(e)                                  an opinion of counsel to the Borrower with respect to the
Credit Agreement as amended, substantially in the form attached as Exhibit E
to the Credit Agreement;

 

(f)                                    all arrangement and upfront fees and expenses of the
Arranger required to be paid by the Borrower concurrently with the Amendment
Effective Date; and

 

(g)                                 such other assurances, certificates, documents,
consents or opinions as the Administrative Agent, the L/C Issuer, or the
Required Lenders reasonably may require and timely request.

 

SECTION 4.                                Acknowledgment and Ratification.  As a material inducement to the
Administrative Agent and the Lenders to execute and deliver this Amendment, the
Borrower agrees and acknowledges that the execution, delivery, and performance
of this Amendment shall, except as expressly provided herein, in no way
release, diminish, impair, reduce, or otherwise affect the obligations of the
Borrower under the Loan Documents, which Loan Documents shall remain in full
force and effect.

 

7

 

SECTION 5.                                Qualifying Subordinated Debt.  Borrower
represents and warrants that, as of the Amendment Effective Date, the
outstanding principal balance of Qualifying Subordinated Debt is $142,100,000
plus interest which has accrued since December 31, 2004 and been added to principal, and the holder of such Qualifying Subordinated
Debt is Enbridge Hungary Liquidity Management Limited Liability Company (“Enbridge Hungary”).  Borrower agrees to deliver, within 30 days
after the Amendment Effective Date, an acknowledgement in form reasonably
satisfactory to the Administrative Agent, executed on behalf of such holder,
that the subordination agreement executed by Enbridge Hungary for the benefit
of holders of Obligations owing under the Credit Agreement (the “Senior Holders”)
remains in full force and effect.  The
Borrower represents and warrants that no Qualifying Subordinated Debt is held
by Enbridge (U.S.) Inc.; therefore, the parties hereto agree that the
subordination agreement of Enbridge (U.S.) Inc. executed for the benefit of the
Senior Holders is terminated.

 

SECTION 6.                                Borrower’s
Representations and Warranties.  As a material inducement to the
Administrative Agent and the Lenders to execute and deliver this Amendment, the
Borrower represents and warrants to the Lenders (with the knowledge and intent
that the Lenders are relying upon the same in entering into this Amendment)
that as of the Amendment Effective Date and as of the date of its execution of
this Amendment, that:

 

(a)                                  This Amendment, the Credit Agreement as amended
hereby, and each other Loan Document have been duly authorized, executed and
delivered by the Borrower and constitute its legal, valid and binding
obligations enforceable against it in accordance with their respective terms
(subject, as to the enforcement of remedies, to applicable bankruptcy,
reorganization, insolvency, moratorium and similar laws affecting creditors’
rights generally and to general principles of equity).

 

(b)                                 There has been no event or circumstance since the
date of the financial statements dated as of December 31, 2004 delivered
pursuant to Section 6.01(a) of the Credit Agreement which has
or could reasonably be expected to have a Material Adverse Effect.  The representations and warranties set forth
in Article V of the Credit Agreement are true and correct in all
material respects on and as of the Amendment Effective Date, after giving
effect to this Amendment, as if made on and as of the Amendment Effective Date
except to the extent such representations and warranties relate solely to an
earlier date, in which case, they shall be true and correct as of such date.

 

(c)                                  As of the date hereof, at the time of and after
giving effect to this Amendment, no Default or Event of Default has occurred
and is continuing.

 

(d)                                 No approval, consent, exemption, authorization or
other action by, or notice to, or filing with, any Governmental Authority is
required to be obtained or made by the Borrower by any material statutory law
or regulation applicable to it as a condition to the execution, delivery or
performance by, or enforcement against, the Borrower of this Amendment.  The execution, delivery and performance by
the Borrower of this Amendment has been duly authorized by all necessary
corporate or other organizational action, and does not and will not (i) violate
the terms of any of the Borrower’s Organization Documents, (ii) result in
any breach of, constitute a default under, or require pursuant to the express
provisions thereof, the creation of any consensual Lien on the properties of
the Borrower under, any Contractual Obligation to which the Borrower is a party
or any order, injunction, writ or decree of any Governmental Authority to which
the Borrower or its property is subject, or (iii) violate any Law, in each
case with respect to the preceding clauses (i) through (iii), which would
reasonably be expected to have a Material Adverse Effect.

 

SECTION 7.                                Administrative Agent, L/C Issuer and Lenders Make No
Representations or Warranties.  None of the Administrative Agent, the L/C
Issuer nor any Lender (a) makes any representation or warranty nor assumes
any responsibility with respect to any statements, warranties, or 

 

8

 

representations made in or in connection with the Loan
Documents or the execution, legality, validity, enforceability, genuineness,
sufficiency, or value of the Credit Agreement, the Loan Documents, or any other
instrument or document furnished pursuant thereto, or (b) makes any
representation or warranty nor assumes any responsibility with respect to the
financial condition of the Borrower or any other Person or the performance or
observance by such Persons of any of their obligations under the Loan
Documents, or any other instrument or document furnished pursuant thereto.

 

SECTION 8.                                Costs.  The Borrower agrees to pay, within 30 days of
receipt of a corresponding reasonably-detailed statement of related time,
charges and other information, the reasonable Attorney Costs of the
Administrative Agent and all other reasonable costs and expenses of the
Administrative Agent, in connection with the preparation, execution and
delivery of this Amendment and any other documents executed by the Borrower in
connection herewith.

 

SECTION 9.                                Effect of Amendment.

 

(a)                                       This Amendment (i) except as expressly provided
herein, shall not be deemed to be a consent to the modification or waiver of
any other term or condition of the Credit Agreement or of any of the
instruments or agreements referred to therein and (ii) shall not prejudice
any right or rights which the Administrative Agent or the Lenders may now have
under or in connection with the Credit Agreement, as amended by this
Amendment.  Except as
otherwise expressly provided by this Amendment, all of the terms, conditions
and provisions of the Credit Agreement shall remain the same.  It is declared and agreed by each of the
parties hereto that the Credit Agreement, as amended hereby, shall continue in
full force and effect, and that this Amendment and such Credit Agreement shall
be read and construed as one instrument.

 

(b)                                      From and after the Amendment Effective Date, each
reference in the Credit Agreement, including the schedules and exhibits thereto
and the other documents delivered in connection therewith, to the “Credit
Agreement,” “this Agreement,” “hereunder,” “hereof,” “herein,” or words of like
import, shall mean and be a reference to the Credit Agreement as amended
hereby.

 

SECTION 10.                                      Miscellaneous.  This Amendment shall for all purposes be
construed in accordance with and governed by the laws of the State of New York
and applicable federal law.  The captions
in this Amendment are for convenience of reference only and shall not define or
limit the provisions hereof.  This
Amendment may be executed in separate counterparts, each of which when so
executed and delivered shall be an original, but all of which together shall
constitute one instrument.  In proving
this Amendment, it shall not be necessary to produce or account for more than
one such counterpart.  This Amendment,
and any documents required or requested to be delivered pursuant to Section 3
hereof, may be delivered by facsimile transmission of the relevant signature pages hereof
and thereof, as applicable.  This
Amendment shall be a “Loan Document” as defined in the Credit Agreement.

 

SECTION 11.                                      USA PATRIOT Act Notice.  Each Lender that is subject to the Act (as
hereinafter defined) and the Administrative Agent (for itself and not on behalf
of any 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,
2001)) (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 or the
Administrative Agent, as applicable, to identify the Borrower in accordance
with the Act.

 

SECTION 12.                                      Entire Agreement.  THE CREDIT AGREEMENT (AS AMENDED BY THIS
AMENDMENT) AND THE OTHER LOAN DOCUMENTS REPRESENT THE FINAL AGREEMENT BETWEEN
THE PARTIES AND MAY NOT BE CONTRADICTED BY EVIDENCE OF PRIOR, 

 

9

 

CONTEMPORANEOUS OR SUBSEQUENT ORAL
AGREEMENTS OF THE PARTIES.  THERE ARE NO UNWRITTEN ORAL
AGREEMENTS BETWEEN THE PARTIES.

 

 

[SIGNATURES
BEGIN ON NEXT PAGE]

 

10

 

IN WITNESS WHEREOF, the parties hereto have caused this
Amendment to be duly executed and delivered by their proper and duly authorized
officers as of the date and year first above written.

 

	
   

  	
  ENBRIDGE ENERGY PARTNERS, L.P.,

  a Delaware limited partnership, as Borrower

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  ENBRIDGE ENERGY MANAGEMENT, L.L.C.,

  as delegate of Enbridge Energy Company, Inc.,

  its General Partner

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
   

  	
  Name:

  	
   

  	
   

  
	
   

  	
   

  	
  Title:

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
   

  	
  Name:

  	
   

  	
   

  
	
   

  	
   

  	
  Title:

  	
   

  	
   

  
							

 

[SIGNATURE PAGE TO THIRD AMENDMENT TO

AMENDED AND RESTATED CREDIT AGREEMENT]

 

 

	
   

  	
  BANK OF AMERICA, N.A., as Administrative Agent

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  	
   

  
	
   

  	
  Joseph F. Scott

  	
   

  
	
   

  	
  Vice President

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  BANK OF AMERICA, N.A., as a Lender and

  	
   

  
	
   

  	
  L/C Issuer

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  	
   

  
	
   

  	
  Joseph F. Scott

  	
   

  
	
   

  	
  Vice President

  	
   

  

 

[SIGNATURE PAGE TO THIRD AMENDMENT TO

AMENDED AND RESTATED CREDIT AGREEMENT]

 

 

	
   

  	
   

  	
  BANK OF MONTREAL, as Syndication Agent

  and as a Lender

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
   

  	
  Name:

  	
   

  	
   

  
	
   

  	
   

  	
  Title:

  	
   

  	
   

  
						

 

[SIGNATURE PAGE TO THIRD AMENDMENT TO

AMENDED AND RESTATED CREDIT AGREEMENT]

 

 

	
   

  	
   

  	
  WACHOVIA BANK, NATIONAL ASSOCIATION

  (formerly known as First Union National Bank), as

  Co-Documentation Agent and as a Lender

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
   

  	
  Name:

  	
   

  	
   

  
	
   

  	
   

  	
  Title:

  	
   

  	
   

  
						

 

[SIGNATURE PAGE TO THIRD AMENDMENT TO

AMENDED AND RESTATED CREDIT AGREEMENT]

 

 

 

	
   

  	
   

  	
  CITIBANK, N.A., as a Lender

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
   

  	
  Name:

  	
   

  	
   

  
	
   

  	
   

  	
  Title:

  	
   

  	
   

  
						

 

[SIGNATURE PAGE TO THIRD AMENDMENT TO

AMENDED AND RESTATED CREDIT AGREEMENT]

 

 

	
   

  	
   

  	
  CIBC INC., as a Lender

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
   

  	
  Name:

  	
   

  	
   

  
	
   

  	
   

  	
  Title:

  	
   

  	
   

  
						

 

[SIGNATURE PAGE TO THIRD AMENDMENT TO

AMENDED AND RESTATED CREDIT AGREEMENT]

 

 

	
   

  	
   

  	
  TORONTO DOMINION (TEXAS), INC., as

  Co-Documentation Agent and as a Lender

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
   

  	
  Name:

  	
   

  	
   

  
	
   

  	
   

  	
  Title:

  	
   

  	
   

  
						

 

[SIGNATURE PAGE TO THIRD AMENDMENT TO

AMENDED AND RESTATED CREDIT AGREEMENT]

 

 

	
   

  	
   

  	
  ABN AMRO BANK N.V., as a Lender

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
   

  	
  Name:

  	
   

  	
   

  
	
   

  	
   

  	
  Title:

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
   

  	
  Name:

  	
   

  	
   

  
	
   

  	
   

  	
  Title:

  	
   

  	
   

  
						

 

[SIGNATURE PAGE TO THIRD AMENDMENT TO

AMENDED AND RESTATED CREDIT AGREEMENT]

 

 

	
   

  	
   

  	
  DEUTSCHE BANK AG NEW YORK BRANCH,

  as a Lender

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
   

  	
  Name:

  	
   

  	
   

  
	
   

  	
   

  	
  Title:

  	
   

  	
   

  
						

 

[SIGNATURE PAGE TO THIRD AMENDMENT TO

AMENDED AND RESTATED CREDIT AGREEMENT]

 

 

	
   

  	
   

  	
  ROYAL BANK OF CANADA, as a Lender

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
   

  	
  Name:

  	
   

  	
   

  
	
   

  	
   

  	
  Title:

  	
   

  	
   

  
						

 

[SIGNATURE PAGE TO THIRD AMENDMENT TO

AMENDED AND RESTATED CREDIT AGREEMENT]

 

 

	
   

  	
   

  	
  SUNTRUST BANK, as a Lender

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
   

  	
  Name:

  	
   

  	
   

  
	
   

  	
   

  	
  Title:

  	
   

  	
   

  
						

 

[SIGNATURE PAGE TO THIRD AMENDMENT TO

AMENDED AND RESTATED CREDIT AGREEMENT]

 

 

	
   

  	
   

  	
  UBS LOAN FINANCE LLC, as a Lender

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
   

  	
  Name:

  	
   

  	
   

  
	
   

  	
   

  	
  Title:

  	
   

  	
   

  
						

 

[SIGNATURE PAGE TO THIRD AMENDMENT TO

AMENDED AND RESTATED CREDIT AGREEMENT]Exhibit 4.3

 

SLM CORPORATION

 

OFFICERS’ CERTIFICATE

 

This certificate is
furnished to JPMorgan Chase Bank, N.A., formerly known as JPMorgan Chase Bank
and The Chase Manhattan Bank, in its capacity as trustee (the “Trustee”),
pursuant to Section 2.02(c) of the Indenture, dated as of October 1, 2000, as
amended or supplemented (the “Indenture”), between SLM Corporation,
formerly known as USA Education, Inc. (the “Company”), and the Trustee.

 

By resolution dated May 10, 2001, the Board of
Directors of the Company authorized the Company to develop a medium term note
program or programs and to issue and sell medium term notes and authorized
certain officers or any one of their designees to take or cause to be taken
actions under such resolution.  By
officers’ certificate dated October 31, 2001, the Company established, pursuant
to Section 2.02 of the Indenture, the terms of securities designated as Medium
Term Notes, Series A (the “Medium Term Notes”), of the Company with an
aggregate initial public offering price of up to $3,000,000,000. By officers’
certificate dated August 20, 2002 and pursuant to Section 2.02 of the
Indenture, the Company amended the terms of the Medium Term Notes to increase
the aggregate initial public offering price of the Medium Term Notes by
$102,000,000.  By officers’ certificate
dated September 13, 2002 and pursuant to Section 2.02 of the Indenture, the
Company amended the terms of the Medium Term Notes to increase the aggregate
initial public offering price of the Medium Term Notes by an amount not to
exceed $10,000,000,000, for an aggregate total of $13,000,000,000.  By officers’ certificate dated August 6, 2003
and pursuant to Section 2.02 of the Indenture, the Company amended the terms of
the Medium Term Notes to increase the aggregate initial public offering price
of the Medium Term Notes by an amount not to exceed $20,000,000,000, for an
aggregate total of $33,000,000,000, plus any increases from time to time under
Rule 462(b) under the General Rules and Regulations under the Securities Act of
1933, as amended.

 

The undersigned, John F.
Remondi, Executive Vice President, Finance of the Company, and Carol R.
Rakatansky, Assistant Corporate Secretary of the Company, hereby make this
certificate in order to set forth the terms of $100,000,000 aggregate principal
amount of the Company’s Consumer Price Index-Linked Medium Term Notes, due March
15, 2017, to be issued on April 15, 2005 (the “Notes”).

 

A.            The resolution of the Board of Directors of the Company
authorizing the issuance from time to time of the Company’s Medium Term Notes
is attached as Exhibit A to this certificate.

 

B.            The terms of the Notes, including the principal amount,
maturity date, and method for calculating and paying interest, are as set forth
on the pricing supplement attached as Exhibit B to this certificate.

 

C.            The Notes shall be evidenced by the
Medium Term Note, Series A, Master Note previously delivered to the Trustee, a
copy of which is attached as Exhibit C to this certificate.

 

D.            Each of the undersigned (i) has read
Section 2.02 and other relevant provisions of the Indenture, (ii) has examined
documents and made inquiries of officers of the Company or its affiliates in
order to ascertain compliance with Section 2.02 of the Indenture, (iii) is of
the opinion that the signing officer has made such examination and
investigation as the signing officer deems necessary to enable such officer to
express an informed opinion as to whether the conditions of Section 2.02 of the
Indenture have been complied with, and (iv) is of the opinion that the
requirements of Section 2.02 of the Indenture have been complied with.

 

IN WITNESS WHEREOF, we have executed this certificate
as of April 12, 2005.

 

 

	
  /s/ John F. Remondi

  	
   

  	
  /s/ Carol R. Rakatansky

  	
   

  
	
  John F. Remondi

  	
  Carol R. Rakatansky

  
	
  Executive Vice
  President, Finance

  	
  Assistant Corporate
  Secretary

  
	
  SLM Corporation

  	
  SLM Corporation

  

 

 

Exhibit A

 

USA Education, Inc.

Meeting of the Board of Directors

May 10, 2001

 

5/01-2/1-2

 

RESOLUTIONS

 

(Pertaining to the Creation and
Authorization of a Medium Term Note

Program or Programs)

 

WHEREAS, the Board of Directors has determined that it
is in the best interest of the Corporation to develop alternative financing
sources for origination and purchases of education-related and other loans by its
subsidiaries (other than the Student Loan Marketing Association), repurchases
of stock and other permitted general corporate purposes;

 

NOW, THEREFORE, BE IT RESOLVED, that the Corporation is
hereby directed to explore and develop a medium term note program or programs;

 

FURTHER RESOLVED, that the Corporation and its
subsidiaries (other than the Student Loan Marketing Association) shall be
authorized in connection with such medium term note program or programs: (1) to
issue and sell medium term notes, including but not limited any debt (which may
or may not be designated as a medium term note) issued under a registration
statement or debt exempt from registration requirements, (2) to establish and
borrow under credit, letter of credit or other liquidity facilities or other
credit enhancement, (3) to use the proceeds of such medium term note issuances
to repurchase the Corporation’s common shares, originate and purchase
education-related and other loans, notes or other assets through subsidiaries
(other than the Student Loan Marketing Association), to make loans or advances
to the Corporation’s subsidiaries, or for other permitted general corporate
purposes, (4) to sell, transfer, pledge or otherwise encumber any and all of
such student loans, notes or other assets, (5) to execute and deliver all instruments
and agreements that may be necessary, appropriate or desirable (including,
without limitation, global securities definitive form certificates representing
the medium term notes, other forms of notes or evidences of debt, distribution
agreements, terms agreements, indentures, credit enhancement or liquidity
facility agreements and any other agreements with administrative or
distribution agents, ratings agencies, placement agents, underwriters, trustees
or other agents), (6) to file one or more registration statements on Form S-3
and any pre- or post- effective amendment thereto with the Securities and
Exchange Commission with regard to the securities described herein, and (7) to
take all other actions and to do all other things necessary, appropriate or
desirable in connection with and to accomplish the foregoing;

 

FURTHER RESOLVED, that in furtherance of the
development and establishment of such a program or programs, the Chief
Executive Officer, any Executive Vice President, the Chief Financial Officer or
any one of their respective designees (collectively, the “Authorized Officer”)
are authorized to take or cause to be taken any and all such actions as such
officer or officers may deem necessary or desirable to carry out the purpose
and intent of the forgoing resolutions, and any and all actions heretofore
taken by any one or more of such Authorized Officers in connection with the
transactions contemplated herein are hereby ratified, approved and confirmed.

 

 

Exhibit B

 

	
  Pricing Supplement No. 58
  dated April 12, 2005

  (to Prospectus dated August 6, 2003

  and Prospectus Supplement dated August 6, 2003)

  	
  Filed
  under Rule 424(b)(3)

  File No. 333-107132

  

 

SLM Corporation

Medium Term Notes, Series A

CPI-Linked Notes due 2017

 

	
  Principal Amount:

  	
  $100,000,000.00

  	
   

  	
  Floating Rate Notes:  ý

  	
   

  	
  Fixed Rate Notes:   o

  	
   

  	
  Other:  o

  
	
  Original Issue Date:

  	
  March 28, 2005

  	
   

  	
  Closing Date:

  	
  April 15, 2005

  	
   

  	
  CUSIP Number: 78442P 40 3

  
	
  Maturity Date:

  	
  March 15, 2017

  	
   

  	
  Option to Extend Maturity:  ý  No

  	
   

  	
  Specified Currency: U.S. Dollars

  
	
  Interest Rate Applicable to the
  Notes:

  
	
   

  
	
  The interest rate on the Notes will be adjusted
  monthly and will be linked to changes in the Consumer Price Index. The
  interest rate for the Notes for each month will be a rate determined as of
  the applicable Interest Determination Date pursuant to the following formula:

  
	
   

  
	
   

  	
  [(CPIt — CPIt-12) / CPIt-12]
  + Spread

  
	
   

  	
   

  
	
   

  	
  Where:

  
	
   

  	
   

  
	
   

  	
  CPIt
  = Current Index Level of CPI (as defined below), as reported on Bloomberg
  CPURNSA;

  
	
   

  	
   

  
	
   

  	
  CPIt-12
  = Index Level of CPI 12 months prior to CPIt;; and

  
	
   

  	
   

  
	
   

  	
  Spread = 2.00%.

  
	
   

  
	
  In no case, however, will the interest rate for the
  Notes be less than the Minimum Interest Rate, which will be 0.00%.

  
									

 

The Notes have been accepted for listing on the New
York Stock Exchange. For additional information, see “Listing Information” on
page 3 of this Pricing Supplement.

 

Investing in the Notes involves a number of risks.
Before you invest, you should read this entire Pricing Supplement and the
attached prospectus and prospectus supplement. In particular, you should read
the “Risk Factors” beginning on page 6 of this Pricing Supplement and make
certain that the Notes are a suitable investment for you.

 

Obligations
of SLM Corporation and its subsidiaries are not guaranteed by the full faith
and

credit
of the United States of America. Neither SLM Corporation nor any of its
subsidiaries is a

government-sponsored
enterprise or an instrumentality of the United States of America.

The Medium Term Notes,
Series A that we are offering by this pricing supplement are a further
issuance of, are fungible with and are consolidated to form a single
series with, our Consumer Price Index-Linked Medium Term Notes, Series A
due March 15, 2017 issued on March 28, 2005. The Medium Term Notes,
Series A being offered by this pricing supplement will have the same CUSIP
number and will trade interchangeably with the previously issued Consumer Price
Index-Linked Medium Term Notes, Series A due March 15, 2017
immediately upon settlement. Currently, $100,000,000 aggregate principal amount
of those notes are outstanding. This issuance will increase the aggregate
principal amount of the outstanding Consumer Price Index-Linked Medium Term
Notes, Series A due March 15, 2017 to $200,000,000.

 

 

	
  Merrill Lynch & Co.

  	
  Morgan
  Stanley

  	
  Wachovia Securities

  
	
  Joint
  Book-Running Managers

  

 

 

April 12, 2005

 

 

	
  Index Maturity:

  	
  Not Applicable.

  
	
   

  	
   

  
	
  Interest Payment Date(s):

  	
  The 15th of each month during the term of
  the Notes beginning May 15, 2005. If the 15th of a month is not a
  Business Day, we will pay the interest on the next Business Day. No interest
  will accrue on that payment for the period from and after the original
  Interest Payment Date to the date we make the payment.

  
	
   

  	
   

  
	
  Interest Period(s):

  	
  Interest will accrue from the 15th of
  each month to but excluding the 15thof the following month.

  
	
   

  	
   

  
	
  Interest Rate Reset Period:

  	
  Monthly, beginning May 15, 2005.

  
	
   

  	
   

  
	
  Spread:

  	
  2.00%.

  
	
   

  	
   

  
	
  Minimum Interest Rate:

  	
  0.00%.

  
	
   

  	
   

  
	
  Maximum Interest Rate:

  	
  Not Applicable.

  
	
   

  	
   

  
	
  Reset Date(s):

  	
  The 15th of each month during the term of the Notes,
  beginning May 15, 2005, with no adjustment.

  
	
   

  	
   

  
	
  Interest Determination Date(s):

  	
  The Original Issue Date and, thereafter, each Reset
  Date.

  
	
   

  	
   

  
	
  Redeemable at the option of the Company:

  	
  ý

  	
  No

  	
  Redemption Price:

  	
  Not Applicable.

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
  o

  	
  Yes

  	
  Redemption Dates:

  	
  Not Applicable.

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Repayment at the option of the Holder:

  	
  ý

  	
  No

  	
  Repayment Price:

  	
  Not Applicable.

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
  o

  	
  Yes

  	
  Repayment Dates:

  	
  Not Applicable.

  

 

	
  Day Count Convention:

  	
  Actual/Actual.

  
	
   

  	
   

  
	
  Form:

  	
  DTC Book-entry.

  
	
   

  	
   

  
	
  Denominations:

  	
  $25 and integral multiples thereof.

  
	
   

  	
   

  
	
  CUSIP Number:

  	
  78442P 40 3.

  
	
   

  	
   

  
	
  ISIN Number:

  	
  US78442P4037.

  
	
   

  	
   

  
	
  Issue Price:

  	
  100.0%.

  
	
   

  	
   

  
	
  Agents’ Discount:

  	
  2.50%.

  
	
   

  	
   

  
	
  Net Proceeds:

  	
  $97,500,000.00.

  
	
   

  	
   

  
	
  Concession:

  	
  2.00%.

  
	
   

  	
   

  
	
  Reallowance:

  	
  N/A.

  
	
   

  	
   

  
	
  Calculation Agent:

  	
  SLM Corporation.

  
	
   

  	
   

  
	
  Trustee:

  	
  JPMorgan Chase Bank, N.A., formerly known as
  JPMorgan Chase Bank and The Chase Manhattan Bank.

  
	
   

  	
   

  
	
  Underwriting:

  	
  We have agreed to sell to the agents named below and
  each of the agents has severally agreed to purchase from us, the respective
  principal amount of the Notes set forth opposite its name below:

  

 

2

 

	
  Agents

  	
   

  	
  Principal Amount

  of Notes

  	
   

  
	
  Merrill Lynch,
  Pierce, Fenner & Smith Incorporated

  	
   

  	
  $

  	
  33,750,000.00

  	
   

  
	
  Morgan Stanley
  & Co. Incorporated

  	
   

  	
  37,500,000.00

  	
   

  
	
  Wachovia Capital
  Markets, LLC

  	
   

  	
  28,750,000.00

  	
   

  
	
  Total

  	
   

  	
  $

  	
  100,000,000.00

  	
   

  
						

 

	
  Listing Information:

  	
  The Notes have been accepted for listing on the New
  York Stock Exchange, which we refer to as the NYSE in this Pricing
  Supplement. The Notes will trade under the NYSE symbol “OSM”. We expect
  trading of the Notes on that exchange to begin within 30 days of
  March 28, 2005.

  
	
   

  	
   

  
	
   

  	
  Merrill Lynch, Pierce, Fenner & Smith
  Incorporated has advised us that they intend to make a market in the Notes
  prior to the commencement of trading on the NYSE. However, Merrill Lynch,
  Pierce, Fenner & Smith Incorporated will have no obligation to make
  a market in the Notes and may cease market making activities, if commenced,
  at any time.

  
	
   

  	
   

  
	
  Trading Characteristics:

  	
  The Notes are expected to trade at a price that
  takes into account the value, if any, of accrued but unpaid interest.
  Therefore, purchasers will not pay and sellers will not receive accrued and
  unpaid interest with respect to the Notes that is not included in the trading
  price thereof. Any portion of the trading price of a Note received that is
  attributable to accrued interest will be treated as ordinary interest income
  for federal income tax purposes and will not be treated as part of the amount
  realized for purposes of determining gain or loss on the disposition of that
  Note.

  
	
   

  	
   

  
	
   

  	
  The trading price of the Notes is likely to be
  sensitive to the level of interest rates generally. If interest rates rise in
  general, the trading price of the Notes may decline to reflect the additional
  yield requirements of the purchasers. Conversely, a decline in interest rates
  may increase the trading price of the Notes.

  

 

An affiliate of Merrill Lynch, Pierce, Fenner & Smith Incorporated,
one of the agents, has entered into a swap transaction in connection with the
Notes and will receive compensation for that transaction.

 

HOW IS THE INTEREST
RATE CALCULATED FOR THE NOTES?

 

The interest rate on the Notes will be adjusted monthly and will be
linked to changes in the CPI (as defined below). For each such Interest Period,
the interest rate will be the rate determined as of the applicable Interest
Determination Date pursuant to the following formula:

 

[(CPIt–CPIt-12)
/ CPIt-12]  + Spread

 

Where:

 

CPIt = Current Index Level of CPI, as
reported on Bloomberg CPURNSA;

 

CPIt-12 = Index Level of CPI
12 months prior to CPIt; and

 

Spread = 2.00%.

 

In no case, however, will the interest rate for the Notes be less than
the Minimum Interest Rate, which is 0.00%.

 

3

 

CPIt for any Reset Date is the CPI for the third calendar
month prior to that Reset Date as published and reported in the second calendar
month prior to that Reset Date or as otherwise determined as described in this
Pricing Supplement. For example, for the Interest Period from and including
April 15, 2005 to and including May 14, 2005, CPIt will be
the CPI for January 2005 and CPIt-12 will be the CPI for
January 2004. The CPI for January 2005 was published by BLS (as
defined below) and reported on Bloomberg CPURNSA in February 2005 and the
CPI for January 2004 was published and reported in February 2004.

 

All values used in the interest rate formula for the Notes will be
rounded to the nearest fifth decimal place (one-one hundred thousandth of a
percentage point), rounding upwards if the sixth decimal place is five or
greater (e.g., 9.876555% (or .09876555) would be rounded up to 9.87656% (or
..0987656) and 9.876554% (or
..09876554) would be rounded down to 9.87655% (or .0987655)). All percentages
resulting from any calculation of the interest rate will be rounded to the
nearest third decimal place (one thousandth of a percentage point), rounding
upwards if the fourth decimal place is five or greater (e.g., 9.8765% (or
..098765) would be rounded up to 9.877% (or .09877) and 9.8764% (or .098764) would be rounded down to 9.876% (or
..09876)). All dollar amounts used in or resulting from such calculation on the
Notes will be rounded to the nearest cent (with one-half cent being rounded
upward).

 

WHO PUBLISHES THE
CONSUMER PRICE INDEX AND WHAT DOES IT MEASURE?

 

The Consumer Price Index, for purposes of the Notes, is the
non-seasonally adjusted U.S. City Average All Items Consumer Price Index for All
Urban Consumers (the “CPI”), published monthly by the Bureau of Labor
Statistics of the U.S. Department of Labor (the “BLS”) and reported on
Bloomberg CPURNSA or any successor service. The BLS makes almost all Consumer
Price Index data publicly available. This information may be accessed
electronically on the BLS home page on the internet at http:/
/www.bls.gov/cpi/. The CPI for a particular month is published during the
following month.

 

According to publicly available information provided by the BLS, the
CPI is a measure of the average change in consumer prices over time for a fixed
market basket of goods and services, including food, clothing, shelter, fuels,
transportation, drugs and charges for the services of doctors and dentists.
User fees (such as water and sewer service) and sales and excise taxes paid by
the consumer are also included. Income taxes and investment items such as
stocks, bonds and life insurance are not included. In calculating the index,
price changes for the various items are averaged together with weights that
represent their importance in the spending of urban households in the United
States.

 

The contents of the market basket of goods and services and the weights
assigned to the various items are updated periodically by the BLS to take into
account changes in consumer spending patterns. The CPI is expressed in relative
terms in relation to a time base reference period for which the level is set at
100.0. The base reference period for the Notes is the 1982-1984 average.

 

HOW HAS THE
CONSUMER PRICE INDEXED PERFORMED HISTORICALLY?

 

The following table sets forth the value of the CPI from
January 1998 to February 2005, as published by the BLS and reported
on Bloomberg CPURNSA:

 

	
  MONTH

  	
   

  	
  2005

  	
   

  	
  2004

  	
   

  	
  2003

  	
   

  	
  2002

  	
   

  	
  2001

  	
   

  	
  2000

  	
   

  	
  1999

  	
   

  	
  1998

  	
   

  
	
  January

  	
   

  	
  190.7

  	
   

  	
  185.2

  	
   

  	
  181.7

  	
   

  	
  177.1

  	
   

  	
  175.1

  	
   

  	
  168.8

  	
   

  	
  164.3

  	
   

  	
  161.6

  	
   

  
	
  February

  	
   

  	
  191.8

  	
   

  	
  186.2

  	
   

  	
  183.1

  	
   

  	
  177.8

  	
   

  	
  175.8

  	
   

  	
  169.8

  	
   

  	
  164.5

  	
   

  	
  161.9

  	
   

  
	
  March

  	
   

  	
   

  	
   

  	
  187.4

  	
   

  	
  184.2

  	
   

  	
  178.8

  	
   

  	
  176.2

  	
   

  	
  171.2

  	
   

  	
  165.0

  	
   

  	
  162.2

  	
   

  
	
  April

  	
   

  	
   

  	
   

  	
  188.0

  	
   

  	
  183.8

  	
   

  	
  179.8

  	
   

  	
  176.9

  	
   

  	
  171.3

  	
   

  	
  166.2

  	
   

  	
  162.5

  	
   

  
	
  May

  	
   

  	
   

  	
   

  	
  189.1

  	
   

  	
  183.5

  	
   

  	
  179.8

  	
   

  	
  177.7

  	
   

  	
  171.5

  	
   

  	
  166.2

  	
   

  	
  162.8

  	
   

  
	
  June

  	
   

  	
   

  	
   

  	
  189.7

  	
   

  	
  183.7

  	
   

  	
  179.9

  	
   

  	
  178.0

  	
   

  	
  172.4

  	
   

  	
  166.2

  	
   

  	
  163.0

  	
   

  
	
  July

  	
   

  	
   

  	
   

  	
  189.4

  	
   

  	
  183.9

  	
   

  	
  180.1

  	
   

  	
  177.5

  	
   

  	
  172.8

  	
   

  	
  166.7

  	
   

  	
  163.2

  	
   

  
	
  August

  	
   

  	
   

  	
   

  	
  189.5

  	
   

  	
  184.6

  	
   

  	
  180.7

  	
   

  	
  177.5

  	
   

  	
  172.8

  	
   

  	
  167.1

  	
   

  	
  163.4

  	
   

  
	
  September

  	
   

  	
   

  	
   

  	
  189.9

  	
   

  	
  185.2

  	
   

  	
  181.0

  	
   

  	
  178.3

  	
   

  	
  173.7

  	
   

  	
  167.9

  	
   

  	
  163.6

  	
   

  
	
  October

  	
   

  	
   

  	
   

  	
  190.9

  	
   

  	
  185.0

  	
   

  	
  181.3

  	
   

  	
  177.7

  	
   

  	
  174.0

  	
   

  	
  168.2

  	
   

  	
  164.0

  	
   

  
	
  November

  	
   

  	
   

  	
   

  	
  191.0

  	
   

  	
  184.5

  	
   

  	
  181.3

  	
   

  	
  177.4

  	
   

  	
  174.1

  	
   

  	
  168.3

  	
   

  	
  164.0

  	
   

  
	
  December

  	
   

  	
   

  	
   

  	
  190.3

  	
   

  	
  184.3

  	
   

  	
  180.9

  	
   

  	
  176.7

  	
   

  	
  174.0

  	
   

  	
  168.3

  	
   

  	
  163.9

  	
   

  

 

4

 

This historical data is presented for information purposes only.
Movements in the CPI that have occurred in the past are not necessarily
indicative of changes that may occur in the future. Actual changes in the CPI
may be less than or greater than those that have occurred in the past.

 

WHAT IF THE
CONSUMER PRICE INDEX IS NOT REPORTED OR IS REVISED, REBASED OR DISCONTINUED?

 

If the CPI is not reported on Bloomberg CPURNSA for a particular month
by 3:00 PM on an Interest Determination Date, but has otherwise been published
by the BLS, SLM Corporation, in its capacity as the calculation agent, will
determine the CPI as published by the BLS for such month using a source it
deems appropriate.

 

In determining the final CPI reference value used to determine the
interest rate on each applicable Interest Determination Date, the Calculation
Agent will use the most recently available value of the CPI for the relevant
month, even if such value has been adjusted from a prior reported value for
that month. In contrast, the initial CPI reference value for each Interest
Determination Date will always be the final CPI reference value for the
preceding Interest Determination Date, even if such value has been adjusted
since that preceding Interest Determination Date. For the first Interest
Determination Date in April 2005, the initial CPI reference value will be
190.7, the CPI level for January 2005. If the CPI level for
January 2005 is adjusted after the date of this Pricing Supplement, the
interest rate determined on the first Interest Determination Date will not be
revised, and in the case of a subsequent downward adjustment in the CPI for
January 2005, you will not receive any additional interest on the first
Interest Payment Date or any other Interest Payment Date.

 

The BLS occasionally rebases the CPI. The CPI was last rebased in
January 1988. The current standard reference base period is
1982-1984 = 100. Prior to the release of the CPI for January 1988,
the standard reference base was 1967 = 100. If the BLS changes the base
reference period of the CPI during the time the notes are outstanding, the
Calculation Agent will continue to calculate the increase or decrease in the
CPI using the existing base year of 1982-1984 as long as the old CPI is still
published. The conversion to the new reference base does not affect the
measurement of the percentage change in a given index series from one point in
time to another, except for rounding differences. Thus rebasing might affect
the published “headline” number often quoted by the financial press, however,
the inflation calculation for the Notes should not be adversely affected by any
such rebasing because changes in the old-based CPI can be calculated by using
the percentage changes of the new rebased CPI.

 

If the old-based CPI is not published, the Calculation Agent will
calculate inflation using the new based CPI. However, as stated above, the
conversion to a new reference base does not affect the measurement of the
percentage changes in a given index series from one time period to another,
except for rounding differences.

 

If, while the Notes are outstanding, the CPI is discontinued or, if in
the opinion of the BLS, as evidenced by a public release, the CPI is
substantially altered, the Calculation Agent will determine the interest rate
on the Notes by reference to a substitute index. The Calculation Agent will
determine the substitute index, in its sole discretion, by a computation methodology
that the Calculation Agent determines will as closely as reasonably possible
replicate the CPI or is another methodology which is in accordance with general
market practice at the time. In doing this, the Calculation Agent may (but is
not required to) determine the substitute index by selecting any substitute
index that is chosen by the Secretary of the Treasury for the Department of The
Treasury’s Inflation-Linked Treasuries, as described at 62 Federal Register
846-874 (January 6, 1997).

 

5

 

 

RISK
FACTORS

 

The Notes are subject to special considerations. An
investment in securities indexed to the consumer price index entails
significant risks that are not associated with similar investments in conventional
floating rate or fixed-rate debt securities. Accordingly, prospective investors
should consult their financial and legal advisors as to the risks entailed by
an investment in consumer price indexed-linked notes and the suitability of the
Notes in light of their particular circumstances.

 

	
  THE INTEREST RATE ON THE NOTES MAY, IN SOME
  CASES, BE ZERO.

  	
   

  	
  Interest payable on the Notes is linked to changes
  in the level of the CPI during twelve-month measurement periods.

  

  If the CPI does not increase or decreases during a measurement period, which
  is likely to occur when there is little or no inflation or when there is
  deflation, owners of the Notes will receive interest payments for that
  interest period equal to the minimum interest rate, which is 0.00%.

  
	
   

  	
   

  	
   

  
	
  THE INTEREST RATE ON THE NOTES MAY BE BELOW THE
  RATE OTHERWISE PAYABLE ON SIMILAR FIXED OR FLOATING RATE DEBT SECURITIES.

  	
   

  	
  The interest rate on the Notes, including the
  minimum interest rate, may be below what we would currently pay if we issued
  non-callable senior debt securities with a fixed or floating rate and similar
  maturity to that of the Notes. Any interest payable in excess of the minimum
  interest rate on the Notes will be based upon the difference in the level of
  the CPI determined as of the measurement dates specified in the formula
  listed above, plus the Spread.

  
	
   

  	
   

  	
   

  
	
  THE HISTORICAL LEVELS OF THE CPI ARE NOT AN
  INDICATION OF THE FUTURE LEVELS OF THE CPI AND THOSE LEVELS MAY CHANGE
  SUBSTANTIALLY.

  	
   

  	
  Holders of the Notes will receive interest payments
  that will be affected by changes in the CPI. Such changes may be significant.
  Changes in the CPI are a function of the changes in specified consumer prices
  over time, which result from the interaction of many factors over which we
  have no control.

  

  The historical levels of the CPI are not an indication of the future levels
  of the CPI during the term of the Notes. In the past, the CPI has experienced
  periods of volatility, sometimes even on a monthly basis. This volatility may
  occur in the future. Fluctuations and trends in the CPI that have occurred in
  the past are not necessarily indicative, however, of fluctuations that may
  occur in the future.

  
	
   

  	
   

  	
   

  
	
  THE INTEREST RATE IS BASED UPON THE CPI. THE CPI
  ITSELF AND THE WAY THE BLS CALCULATES THE CPI MAY CHANGE IN THE FUTURE OR THE
  CPI MAY NO LONGER BE PUBLISHED.

  	
   

  	
  There can be no assurance that the BLS will not
  change the method by which it calculates the CPI. In addition, changes in the
  way the CPI is calculated could reduce the level of the CPI and lower the interest
  payments with respect to the Notes. Accordingly, the amount of interest, if
  any, payable on the Notes, and therefore the value of the Notes, may be
  significantly reduced. If the CPI is substantially altered (as determined in
  the sole discretion of the Calculation Agent), a substitute index will be
  employed to calculate the interest payable on the Notes.

  

 

6

 

ADDITIONAL
UNITED STATES FEDERAL

INCOME
TAX CONSIDERATIONS

 

Set forth below is a summary of some U.S. federal income tax
considerations relevant to the beneficial owner of the Notes that is a U.S.
holder (as defined in the accompanying Prospectus Supplement). This summary
does not address investors that may be subject to special tax rules or investors
that hold the Notes as part of an integrated investment. This summary
supplements the discussion contained in the accompanying Prospectus Supplement
under the heading “United States Federal Taxation.”

 

We intend to treat the Notes as “variable rate debt instruments” for
U.S. federal income tax purposes. Assuming the Notes are so treated, under the
Treasury regulations governing variable rate debt instruments that bear
interest that is unconditionally payable at least annually at a single
objective rate, payments of interest on the Notes will be taxable to a U.S.
holder as ordinary interest income at the time that such payments are accrued
or received, in accordance with the U.S. holder’s method of tax accounting. In
the case of a U.S. holder that uses the accrual method of tax accounting, the
amount of interest accrued during an accrual period will be determined by
assuming that the Notes bear interest at a fixed interest rate that reflects
the yield that is reasonably expected for the Notes, and the interest allocable
to the accrual period will be adjusted to reflect the interest actually paid
during the accrual period. A U.S. holder may submit a written request to the
address set forth under “Where You Can Find More Information” in the
accompanying Prospectus Supplement to obtain the “reasonably expected” rate for
the Notes. Assuming the Notes are treated as variable rate debt instruments,
upon the disposition of a Note by sale, exchange, redemption, or repayment of
principal at maturity, a U.S. holder will generally recognize taxable gain or
loss equal to the difference between the amount realized on the disposition
(other than amounts attributable to accrued interest) and the U.S. holder’s
adjusted tax basis in the Notes. Prospective investors should consult the
discussion under the heading “United States Federal Taxation – Tax Consequences
to U.S. Holders – Variable Rate Notes” and “United States Federal Taxation – Tax
Consequences to U.S. Holders – Sale, Exchange or Retirement of the Notes” in
the accompanying Prospectus Supplement.

 

Alternatively, it is possible that the Notes could be treated as
“contingent payment debt instruments” (“CPDI”) for U.S. federal income tax
purposes. Under the CPDI rules, a U.S. holder would be required, among other
matters, to include in income each year an accrual of interest at a “comparable
yield” (determined at the time of issuance of the Notes) for a comparable
non-contingent note issued by us. To the extent the comparable yield were to
exceed the interest actually paid on a Note in any taxable year, a U.S. holder
could recognize ordinary interest income for that taxable year in excess of the
cash actually paid on the Note during that taxable year and such excess could
increase the U.S. holder’s tax basis in the Note. In addition, any gain
realized by a U.S. holder on the sale or other taxable disposition of a Note
(including as a result of payments made at maturity) generally would be
characterized as ordinary income, rather than as capital gain.

 

THE PRECEDING DISCUSSION IS ONLY A
SUMMARY OF CERTAIN OF THE TAX IMPLICATIONS OF AN INVESTMENT IN THE NOTES.
PROSPECTIVE PURCHASERS ARE URGED TO CONSULT WITH THEIR OWN TAX ADVISORS PRIOR
TO INVESTING TO DETERMINE THE TAX IMPLICATIONS OF SUCH AN INVESTMENT IN LIGHT
OF SUCH INVESTOR’S PARTICULAR CIRCUMSTANCES.

 

7

 

SLM
Corporation

 

 

Exhibit C

 

EXCEPT AS OTHERWISE PROVIDED IN SECTION 2.15 OF THE INDENTURE, THIS
MASTER NOTE MAY BE TRANSFERRED IN WHOLE, BUT NOT IN PART, ONLY TO ANOTHER NOMINEE
OF THE DEPOSITARY OR TO A SUCCESSOR DEPOSITARY OR TO A NOMINEE OF SUCH
SUCCESSOR DEPOSITARY. UNLESS THIS CERTIFICATE IS PRESENTED BY AN AUTHORIZED
REPRESENTATIVE OF THE DEPOSITORY TRUST COMPANY (55 WATER STREET, NEW YORK, NEW
YORK) TO THE ISSUER OR ITS AGENT FOR REGISTRATION OF TRANSFER, EXCHANGE OR
PAYMENT, AND ANY CERTIFICATE ISSUED IS REGISTERED IN THE NAME OF CEDE & CO.
OR SUCH OTHER NAME AS REQUESTED BY AN AUTHORIZED REPRESENTATIVE OF THE
DEPOSITORY TRUST COMPANY AND ANY PAYMENT IS MADE TO CEDE & CO., ANY
TRANSFER, PLEDGE OR OTHER USE HEREOF FOR VALUE OR OTHERWISE BY OR TO ANY PERSON
IS WRONGFUL, SINCE THE REGISTERED OWNER HEREOF, CEDE & CO., HAS AN INTEREST
HEREIN.

 

USA EDUCATION, INC.

MEDIUM TERM NOTE, SERIES
A

 

MASTER NOTE

 

	
  October 31, 2001

  	
   

  
	
  (Date of Issuance)

  	
   

  

 

USA EDUCATION, INC., a corporation organized and
existing under the laws of the State of Delaware (the “Company”), for value
received, hereby promises to pay to CEDE & CO., or registered assigns: (i)
on each principal payment date, including each amortization date, redemption
date, repayment date, maturity date and extended maturity date, as applicable,
of each obligation identified on the records of the Issuer (which records are
maintained by The Chase Manhattan Bank, in its capacity as paying agent (the
“Paying Agent”)), the principal amount then due and payable for each such
obligation, and (ii) on each interest payment date, if any, the interest then
due and payable, on the principal amount for each such obligation. Payment
shall be made by wire transfer of United States dollars to the registered
owner, or in immediately available funds or the equivalent to a party
authorized by the registered owner and in the currency other than United States
dollars as provided for in each such obligation, by the Paying Agent without
the necessity and surrender of this Master Note (the “Master Note”).

 

REFERENCE IS HEREBY MADE TO THE FURTHER PROVISIONS OF
THIS MASTER NOTE SET FORTH ON THE REVERSE HEREOF AND TO THE TERMS OF THE
PROSPECTUS SUPPLEMENT AND PRICING SUPPLEMENT(S), WHICH ARE INCORPORATED HEREIN
BY REFERENCE.

 

This Master Note shall be governed by and construed in
accordance with the laws of the State of New York. This Master Note is a valid
and binding obligation of the Issuer.

 

Unless the certificate of authentication hereon has
been executed by

 

 

The Chase Manhattan Bank, the Trustee under the Indenture, or its
successor thereunder by the manual signature of one of its authorized
signatories, this Note shall not be entitled to any benefit under the Indenture
or be valid or obligatory for any purpose.

 

IN WITNESS WHEREOF, the Company has caused this
instrument to be duly executed.

 

	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
  Dated: October 31, 2001

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
  USA EDUCATION, INC.

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
  By:

  	
  /s/ John F. Remondi

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
  Name: John F. Remondi

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
  Title: Executive Vice President & Chief
  Financial Officer

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
  By:

  	
  /s/ Mary F. Eure

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
  Name: Mary F. Eure

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
  Title: Corporate Secretary

  

 

8

 

 

CERTIFICATE OF
AUTHENTICATION

 

This is one of the Notes
referred to in the within-mentioned Indenture.

 

	
   

  	
   

  	
  THE CHASE MANHATTAN BANK, as Trustee

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
  Authorized Signature

  	
   

  

 

3

 

[Reverse of Note]

 

USA EDUCATION, INC.

 

MEDIUM TERM NOTES, SERIES
A

 

MASTER NOTE

 

This Master Note is one of a duly authorized issue of
notes (the “Notes”) of the Company issued under the Indenture, dated as of
October 1, 2000 (the “Base Indenture”), as amended or supplemented prior to the
date hereof

(collectively, the “Indenture”), between the Company and The Chase
Manhattan Bank, as trustee (the “Trustee,” which term includes any successor
trustee under the Indenture), to which Indenture and all indentures
supplemental thereto reference is hereby made for a statement of the respective
rights and limitations of rights thereunder of the Company, the Trustee and the
Holders of the Notes (the “Holders”), and the terms upon which the Securities
are, and are to be, authenticated and delivered. Capitalized terms used and not
otherwise defined in this Master Note have the meanings ascribed to them in the
Indenture.

 

The Calculation Agent shall calculate the interest
payable hereon in accordance with the Indenture and will confirm in writing
such calculation to the Trustee and the Paying Agent (if other than the
Trustee) immediately after each determination. All determinations made by the
Trustee shall be, in the absence of manifest error, conclusive for all purposes
and binding on the Company and Holders.

 

If an Event of Default with respect to the Notes shall
occur and be continuing, the Trustee, by notice to the Company, or the Holders
of at least 25% in principal amount of all of the outstanding Notes, by notice
to the Company and the Trustee, may declare the principal of all the Notes due
and payable in the manner and with the effect provided in the Indenture.

 

The Indenture permits, with certain exceptions as
therein provided, the amendment thereof and the modification of the rights and
obligations of the Company and the rights of the Holders at any time by the
Company and the Trustee with the consent of the Holders of a majority in
aggregate principal amount of the Notes at the time outstanding. The Indenture
also contains provisions permitting the Holders of specified percentages in
aggregate principal amount of the Notes at the time outstanding, on behalf of
the Holders of all Notes, to waive compliance by the Company with certain
provisions of the Indenture and certain past defaults under the Indenture and
their consequences. Any such consent or waiver by the Holder of this Master
Note shall be conclusive and binding upon such Holder and upon future Holders
of this Master Note and of any Note issued upon the registration of transfer
hereof or in exchange therefor or in lieu hereof whether or not notation of
such consent or waiver is made upon this Master Note.

 

Holders may not enforce their rights pursuant to the
Indenture or the Notes except as provided in the Indenture. No reference herein
to the Indenture and no provision of this Master Note or the Indenture shall
alter or impair the obligation of the Company, which is absolute and
unconditional, to pay the principal of and interest on this Master Note at the
time, place, and rate, and 

 

4

 

in the coin or currency, herein prescribed.

 

5

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00083-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00083-of-00352.parquet"}]]