Document:

exhibit101

    1   SLABS Participation Agreement    SLABS PARTICIPATION AGREEMENT      This SLABS Participation Agreement (the “Agreement”) is made and entered into as of   the 5th day of May, 2020, by and between National Education Loan Network, Inc., a Nebraska   corporation, and its affiliates and subsidiaries (collectively, “Nelnet”), and Union Bank and Trust   Company, a Nebraska banking corporation and trust company, solely in its capacity as trustee of   various grantor trusts known as Short Term Federal Investment Trusts or other grantor trusts   (“UBATCO”).       WITNESSETH:      WHEREAS, Nelnet is or will be the owner of asset backed securities issued by entities   other than Nelnet (collectively, the “SLABS”) in the form of bonds or notes collateralized by   Federal Family Education Loan Program student loans or interests therein (“Eligible Loans”)   guaranteed and reinsured to the maximum extent permitted pursuant to the Higher Education Act   of 1965, as amended, and all regulations and rules promulgated thereunder (the “Act”), and title   to such Eligible Loans is held by an eligible lender trustee as required under the Act;      WHEREAS, Nelnet desires to sell, and UBATCO desires to purchase, an undivided   participation interest in Nelnet’s beneficial interest in certain of the SLABS on the terms and   conditions hereinafter set forth.      NOW, THEREFORE, in consideration of the mutual promises contained herein, the   parties hereto agree as follows:       I. PURCHASE OF PARTICIPATION INTEREST IN SLABS      Section 1.01. Purchase of Participation Interests.       A. Nelnet shall sell (or cause to be sold), and UBATCO shall   purchase, a participation interest in that portion of the SLABS which is   collateralized by the fully guaranteed portion of the Eligible Loans with an   aggregate unpaid principal balance in increments of $100,000.00 (unless   otherwise agreed by the parties hereto), up to a maximum aggregate total of up to   $100,000,000.00, or such total as the parties may otherwise mutually agree upon   from time to time. UBATCO shall pay to Nelnet or its designee the purchase price   of the participation interest to be sold herein, and such purchase price shall be   equal to the lesser of (i) one hundred percent (100%) of the pro rata portion of the   unpaid principal balances and accrued and unpaid interest thereon of the SLABS   as described in the participation certificate with respect to such SLABS, (ii) the   valuation determined by a third party valuation agent mutually agreed upon and   designated by the parties, or (iii) such other price as may be negotiated between   the parties based on the mutually agreed upon value of the interests in the   SLABS. The participation interest described herein shall include the securities   related to the SLABS, related bonds, promissory notes, offering memoranda,   CUSIP records or documents, and reports received by or on behalf of Nelnet in   connection with the SLABS. The participation interest purchased by UBATCO   DocuSign Envelope ID: 6BACE3D7-C8B4-48BB-A941-13A02CCE2080    

 

    2   SLABS Participation Agreement   shall represent a participation interest in each of the individual SLABS   specifically identified in the participation certificate with respect thereto;   UBATCO is not purchasing an interest in any fungible group of SLABS. The   purchase price shall be paid by wire transfer of immediately available funds from   UBATCO to Nelnet. Unless UBATCO gives prior written consent, any portion of   the SLABS in respect of Eligible Loans pledged as collateral to secure payment of   the SLABS, which is not guaranteed under the risk sharing provisions of the Act,   shall be retained by Nelnet and shall not be participated to UBATCO hereunder. It   is acknowledged that UBATCO will not purchase any participation interest in its   own right, but rather only in its capacity as trustee on behalf of various grantor   trusts.      B. The sale and purchase of SLABS participations under this   Agreement shall be without recourse against Nelnet. Nelnet and UBATCO   acknowledge and agree that this Agreement results in a pro rata sharing of credit   risk proportionate to the respective interests of Nelnet and UBATCO in the   SLABS, both before and after any defaults with respect to such SLABS or the   Eligible Loans pledged as collateral to secure payment of the SLABS.       Section 1.02. Participation Certificates. On the date of the first sale of a participation   interest with respect to a portfolio of SLABS, or thereafter as mutually agreed to by the parties,   Nelnet shall execute and deliver (or shall cause to be executed and delivered) to UBATCO a   participation certificate substantially in the form marked as Exhibit “A,” attached hereto and   incorporated herein by this reference, evidencing a participating equitable ownership interest in   the SLABS in that particular portfolio. Nelnet shall deliver or cause to be delivered to UBATCO   in addition to the executed original of Exhibit “A” a schedule of the securities identifying such   SLABS comprising the portfolio, title to which shall be retained by or on behalf of Nelnet. As   Nelnet sells additional participation interests in SLABS to UBATCO, additional schedules   identifying participated SLABS shall be issued accordingly.      Section 1.03. Distribution of Payments Received. Upon transfer of a participation   interest with respect to particular portfolio SLABS, UBATCO shall be entitled to one hundred   percent (100%) of payments and income received with respect to the participated portion of the   SLABS contained in such participation certificate, less a fee (“Nelnet’s Fee”) deducted and paid   to Nelnet equal to the difference between (i) the total of interest or other income received with   respect to such SLABS contained in a participation certificate, less (ii) the amount equal to the   product of (A) the annualized rate of 70 basis points (0.70%) over the one month London   Inter-Bank Offered Rate (LIBOR), multiplied by (B) the average quarterly aggregate outstanding   the participated portion of principal balances of the SLABS contained in the participation   certificate. Nelnet shall pay for all administration costs, all servicing costs incurred by its   servicing agent (“Servicer”) and any other costs incidental to or associated with ownership,   administration, servicing, and collection of the SLABS; all such costs shall be deducted from and   paid from Nelnet’s Fee. Nelnet’s Fee shall be payable to Nelnet on a quarterly basis. Nelnet   agrees to account and deliver to UBATCO, all sums of principal, interest other income received   by Nelnet on account of the SLABS during the term of the participation certificates. Nelnet shall   forward such payments of UBATCO’s portion of income as are due to UBATCO in accordance   with the terms of this Agreement no less frequently than on a quarterly basis, or as otherwise   DocuSign Envelope ID: 6BACE3D7-C8B4-48BB-A941-13A02CCE2080    

 

    3   SLABS Participation Agreement   mutually agreed upon by the parties hereto. Nelnet shall furnish or cause to be furnished to   UBATCO a statement showing the amount of the balances of each of the SLABS covered by a   participation certificate, and specific information on the individual SLABS as UBATCO may   reasonably require from time to time, if reasonably available to Nelnet. UBATCO shall have   access to inspect documents in connection with the SLABS covered by a participation certificate   on a day-to-day basis. In no event shall any payments required under this Agreement be   construed as fees to be paid in excess of any amounts as may be otherwise permitted under the   SLABS or applicable laws and regulations.      Section 1.04. Possession and Control of the SLABS. Nelnet shall cause all of the   SLABS to be administered, serviced and collected in accordance with the requirements of the   SLABS and applicable laws and regulations. Nelnet may engage one or more custodians to hold   possession of the documentation related to the SLABS.  The costs and expenses associated with   the administration, servicing and collection of the SLABS shall be paid by Nelnet. Promissory   notes, bonds, CUSIP records and other documents evidencing or relating to the Eligible Loans   shall be retained by Nelnet or its custodian for the benefit of UBATCO. Nelnet shall segregate   the SLABS in a separate portfolio for administration purposes for the benefit of UBATCO. After   purchase of the participation interests pursuant to this Agreement, all actions and decisions   concerning the SLABS so participated shall be made by Nelnet, subject to Nelnet conferring   with UBATCO, and such decisions shall be binding upon UBATCO. Nelnet will maintain   customary books and records relating to the SLABS participated hereunder, which shall be made   available to UBATCO for inspection or copying.       Section 1.05. Characteristics of SLABS. Each of the SLABS shall be secured by   Eligible Loans pledged as collateral, and there is in force and effect for each of the Eligible   Loans, a guarantee (to the maximum extent permitted under the Act of the principal and interest   of each of the Eligible Loans) from a guarantee agency which has entered into a contract of   federal reinsurance with the Secretary of Education as to the Eligible Loans. In addition, the   Eligible Loans pledged as collateral to secure the SLABS shall have all of the characteristics   which Nelnet warrants and represents in Section 2.03 of this Agreement.  Each of the SLABS   participated pursuant to this Agreement shall have been issued by an issuer other than Nelnet.      Section 1.06. Volume of Participations. Nelnet shall cause the principal amount of   SLABS participated hereunder not to exceed the aggregate amount as set forth in Section   1.01(A) hereof, and may reduce the principal amount of SLABS participated hereunder to the   aggregate amount of $0.       II. REPRESENTATIONS, WARRANTIES AND COVENANTS OF NELNET      Nelnet hereby represents and warrants to UBATCO as follows:      Section 2.01. Title to SLABS.  Nelnet is the legal owner of the SLABS participated to   UBATCO pursuant to this Agreement, and neither the SLABS nor participation interests therein   are subject to any lien, pledge, participation, or encumbrance other than the participation interest   being sold pursuant to this Agreement. Nelnet may, in its discretion, approve and accomplish any   sale, assignment, transfer, encumbrance, or other disposition of the SLABS, following the sale of   the participation interest contemplated herein, in which event Nelnet shall give prior written   DocuSign Envelope ID: 6BACE3D7-C8B4-48BB-A941-13A02CCE2080    

 

    4   SLABS Participation Agreement   notice of such disposition to UBATCO and shall pay to UBATCO the pro rata interest of   UBATCO in and to such SLABS subject to such disposition.      Section 2.02. Validity of SLABS.  Each of the SLABS is, to the knowledge of Nelnet,   the valid and binding obligation of the issuer thereof, enforceable in accordance with its terms,   except to the extent that enforceability may be affected by any applicable bankruptcy,   insolvency, reorganization or other similar laws or enactments now or hereafter enacted by state   or federal government affecting the enforcement of creditors rights generally, regardless of   whether such enforceability is considered a proceeding in equity or at law.      Section 2.03. Characteristics of Eligible Loans Securing SLABS. Payment of interest or   principal on none of the SLABS as of the date of this Agreement shall be delinquent.  To the   knowledge of Nelnet, each of the Eligible Loans pledged as collateral to secure payment of the   SLABS is guaranteed by a guarantee contract with a guarantee agency in accordance with the   Act.  Title to the Eligible Loans pledged as collateral to secure payment of the SLABS shall be   held by an “Eligible Lender” under the Act during the terms of this Agreement.  To the   knowledge of Nelnet, each of the Eligible Loans pledged as collateral to secure payment of the   SLABS complies with the representations and warranties as set forth in the offering disclosures   related to the SLABS.       Section 2.04. Authorization; Conflict.  Execution, delivery and performance of this   Agreement by Nelnet (i) have been duly authorized or ratified effective as of the date of   execution by all necessary corporate action on the part of Nelnet; (ii) does not and will not   contravene the laws of the State of Nebraska, providing for the organization and governing of   Nelnet; (iii) does not and will not conflict with, or result in a violation of, any applicable laws or   regulations; (iv) does not and will not require any consent or approval of any creditor or   constitute a violation of or default under any agreement or instrument to which Nelnet is a party   whereby it or any of its property may be bound.       III. REPRESENTATIONS AND WARRANTIES OF UBATCO.      UBATCO hereby represents and warrants to Nelnet as follows:      Section 3.01. Authorization; Conflict.  The execution, delivery and performance of this   Agreement by UBATCO (i) have been duly authorized by all necessary corporate action on the   part of UBATCO; (ii) does not and will not contravene the laws of the State of Nebraska   providing for the organization and governing of UBATCO; (iii) does not and will not conflict   with, or result in a violation, any applicable laws or regulations; (iv) does not and will not require   any consent or approval of any creditor or constitute a violation of or default under any   agreement or instrument to which UBATCO is a party whereby it or any of its property may be   bound.   DocuSign Envelope ID: 6BACE3D7-C8B4-48BB-A941-13A02CCE2080    

 

    5   SLABS Participation Agreement   IV. TERM OF AGREEMENT      Section 4.01. The term of this Agreement shall be 364 days from the date of execution   of this Agreement. The term of this Agreement or any portions thereof, may be terminated earlier   by UBATCO or Nelnet upon five (5) business days prior notice to the other party. This   Agreement shall automatically renew for successive 364-day terms, without necessity of any   further documentation, unless either party hereto gives notice to the other party of intent to   terminate at the end of the then current term or renewal. Upon termination of the participation   certificate, Nelnet shall have the option, without the obligation, to purchase back from UBATCO   the participation interest in the SLABS comprising the terminated participation certificate for a   purchase price equal the product of the purchase price percentage (as determined from the   original purchase of the participation interest in Section 1.01(A) hereof), multiplied by the   aggregate of the full unpaid principal balances and accrued and unpaid interest thereon of the   participated portion of all the SLABS covered in the terminated participation certificate. In order   to exercise such option to purchase, Nelnet must give written notice to UBATCO at least three   days prior to termination of the participation certificate; if the option is exercised, such purchase   shall be closed upon the termination of the participation certificate. In the event Nelnet does not   exercise its option to purchase SLABS contained in any participation certificate, upon the   termination of the participation certificate, Nelnet shall immediately transfer or cause its   custodian to transfer to UBATCO or its designee legal title and any unparticipated beneficial   interest to the underlying SLABS comprising the participation certificate, or Nelnet’s   participation interest therein, and Nelnet shall immediately deliver or cause its custodian to   deliver to UBATCO an executed bill of sale, possession of the promissory notes, bonds and   SLABS files, all payments and income yielded from the underlying SLABS, and other   documentation reasonably required by UBATCO and acceptable in form to UBATCO which is   effective to transfer all of Nelnet’s right, title and interest in and to such underlying SLABS or   Nelnet’s participation interest therein, to UBATCO, free and clear of any lien or encumbrances   of any nature and without payment of further consideration; UBATCO shall pay to Nelnet any   outstanding principal and interest representing previously unparticipated portions of such   SLABS. If Nelnet exercises its option to purchase the participated SLABS as permitted above,   Nelnet may deal in the same as it deems proper. The parties agree that this Agreement has not   been undertaken for the purpose of recognizing gains or decreasing losses resulting from market   value changes in the SLABS.  In the event Nelnet sells, transfers or otherwise disposes of any   of the SLABS participated hereunder or interests therein to any third party, UBATCO shall not   be entitled to receive or share in any gain recognized upon such sale or any portion thereof.       V. MISCELLANEOUS      Section 5.01. Assignment. The rights of UBATCO under this Agreement are assignable   or may be sub-participated, pledged, exchanged or otherwise disposed of in whole or in part,   without the prior written consent of Nelnet, but any such disposition shall be solely to   beneficiaries of the grantor trusts for which UBATCO serves as trustee on or after the date of   this Agreement. The rights and obligations of Nelnet under this Agreement may not be assigned   in whole or in part without the prior written consent of UBATCO. This Agreement shall be   binding upon the parties hereto, and their permitted successors and assigns.      DocuSign Envelope ID: 6BACE3D7-C8B4-48BB-A941-13A02CCE2080    

 

    6   SLABS Participation Agreement   Section 5.02. Applicable Laws. This Agreement shall be governed by and construed in   accordance with the laws of the State of Nebraska.       Section 5.03. No Partnership. This Agreement shall not be construed to create a   partnership or joint venture between UBATCO and Nelnet. The transaction evidenced by this   Agreement is a participation transaction pursuant to which UBATCO and Nelnet are   participating in the SLABS.      Section 5.04. Amendment. This Agreement may be modified or otherwise amended   only if such modification or amendment is in writing and signed by both NELnet and UBATCO.       Section 5.05. Notices. All notices and other communications under this Agreement shall   be deemed to have been duly given if emailed or delivered or mailed by regular United States   mail, sufficient postage pre-paid, addressed as follows:        If to Nelnet:      National Education Loan Network, Inc.    ATTN:  James D. Kruger   121 S. 13th Street   Suite #100   Lincoln, NE  68508   Email:  jim.kruger@nelnet.net       and if to UBATCO:      Union Bank and Trust Company   ATTN:  Mark Portz   6801 S. 27th Street   Lincoln, NE  68512   Email:  mark.portz@ubt.com       or to any such address as either party may direct in writing delivered to the other party as set   forth herein.      Section 5.06. Continuing Representations. The warranties and representations of the   parties contained in Articles II and III herein shall survive execution of this Agreement and bind   the parties hereto as continuing covenants.                   [THE REMAINDER OF THIS PAGE IS INTENTIONALLY LEFT BLANK.]   DocuSign Envelope ID: 6BACE3D7-C8B4-48BB-A941-13A02CCE2080    

 

    7   SLABS Participation Agreement      IN WITNESS WHEREOF, the parties have caused this SLABS Participation Agreement   to be executed by officers duly authorized as of the day first above written.      National Education Loan Network, Inc., a   Nebraska corporation          By: ________________________________   Title: ________________________________      UNION BANK AND TRUST COMPANY,   a Nebraska banking corporation and trust   company, in Its Capacity as Trustee          By: ________________________________   Title: ________________________________            DocuSign Envelope ID: 6BACE3D7-C8B4-48BB-A941-13A02CCE2080   1st VP   Executive Chairman    

 

    8   SLABS Participation Agreement    EXHIBIT A      PARTICIPATION CERTIFICATE      Pursuant to that certain SLABS Participation Agreement (the “Agreement”) dated May   ___, 2020, by and between Union Bank and Trust Company in its capacity as trustee and   National Education Loan Network, Inc., and its affiliates and subsidiaries (collectively,   “Nelnet”), Nelnet hereby issues and delivers this Participation Certificate to evidence Union   Bank and Trust Company as Trustee’s participation interests in student loan asset backed   securities (“SLABS”), which are identified by the schedule marked as Schedule “A”, attached   hereto and incorporated herein by this reference, which loans or participation interests therein are   owned by or on behalf of Nelnet and designated a separate account, in accordance with the   Agreement. This Participation Certificate shall be governed, in all respects, by the Agreement,   the terms of which are incorporated herein by this reference as if fully stated herein.      DATED the _____ day of __________, 2020.       National Education Loan Network, Inc., a   Nebraska corporation          By: ________________________________   Title: ________________________________         Accepted this ____ day of ___________, 2020.      UNION BANK AND TRUST COMPANY,   a Nebraska banking corporation and trust   company, in Its Capacity as Trustee          By: ________________________________   Title: ________________________________                  DocuSign Envelope ID: 6BACE3D7-C8B4-48BB-A941-13A02CCE2080    

 

    9   SLABS Participation Agreement                SCHEDULE “A”       Schedule of Student Loan Asset Backed Securities   DocuSign Envelope ID: 6BACE3D7-C8B4-48BB-A941-13A02CCE2080exhibit102nelnetparentco

DocuSign Envelope ID: 46683508-267C-4318-8B83-D004D7A5098C                                      PARENT COMPANY AGREEMENT                    This PARENT COMPANY AGREEMENT (the "Agreement"),            dated as of                             , is made and entered into by and among the            FEDERAL DEPOSIT INSURANCE CORPORATION, a Federal banking agency existing            under the laws of the United States and having its principal office in Washington, DC (the           "FDIC"); NELNET, INC., a corporation duly organized and existing under the laws of the State           of Nebraska with headquarters at 121 South 13th Street, Suite 100, Lincoln, NE, 68508 (the           "Parent Company"); MICHAEL DUNLAP, controlling shareholder of the Parent Company (the           "Controlling Shareholder"); and NELNET BANK, a proposed Utah-cha~~tered industrial bank,            located at 13907 S. Minuteman Drive, Draper, Salt Lalce County, Utah 84020 (the "Applicant").                                               WITNESSETH:                   WHEREAS, the FDIC is authorized by sections 5, 6 and 11 of the Federal Deposit           Insurance Act (the "FDI Act"), 12 U,S.C. §§ 1815, 1816, and 1821, to act on all applications for           Federal Deposit Insurance by depository institutions and to insure the deposits of all such           institutions entitled to the benefits of Federal Deposit Insurance;                   WHEREAS, the Applicant is a proposed Utah-chartered industrial bank being foamed as           a wholly-owned subsidiary of the Parent Company that has submitted to the FDIC an application           for Federal Deposit Insurance (the "Application");                   WHEREAS, the Parent Company is a publicly traded company and desires to organize           the Applicant to originate, refinance and service private student and consumer loans, and to offer           deposit products;                   WHEREAS, the FDIC has determined that this Agreement is necessary to better address           the potential risks to the Applicant and the Deposit Insurance Fund;                   WHEREAS, the FDIC is required by section 38A(b) of the FDI Act, 12 U.S.C. § 18310-          1(b), to require the Parent Company to serve as a source of financial strength to the Applicant;                   WHEREAS, the Applicant, the Parent Company, and the Controlling Shareholder have           expressed their willingness to submit to such conditions as the FDIC inay determine are           reasonable and necessary for this purpose;                   NOW, THEREFORE, in consideration of the premises, terms, and conditions contained           herein, the receipt and sufficiency of which are hereby acknowledged, the parties hereby agree as           follows: 

 

DocuSign Envelope ID: 46883508-2B7C-4318-8883-D004D7A5098C              1.    Effectiveness; Approval of the FDIC. Upon approval of the Application by the FDIC,                  this Agreement shall become fully effective and binding upon the parties hereto.             2.    Obligations of the Parent Company.             a)    Capital and Liquidity. Parent Company shall (or the Controlling Shareholder shall                  cause the Parent Company to) maintain the Applicant's capital and liquidity at such                  levels as the FDIC deems appropriate, as reflected in the terms of a Capital and Liquidity                  Maintenance Agreement (CALMA) entered into by and among the Parent Company, the                  Controlling Shareholder, the FDIC, and the Applicant; and take such other actions as the                  FDIC deems appropriate to provide the Applicant with resources for additional capital                  and liquidity.             b)    Subsidiary Listing. The Parent Company shall submit to the FDIC annually a listing of                  all of its subsidiaries and affiliates. Such listing should be submitted by March 31 of                  each year following approval of this Application for the prior year-end.             c)    Examination. The Parent Company consents to examination by the FDIC of the Parent                  Company and each of its subsidiaries to monitor compliance with this Agreement, the                  CALMA, and the provisions of the FDI Act or any other Federal law that the FDIC has                  specific jurisdiction to enforce against the Parent Company or its subsidiaries and                  affiliates.             d)    Reports. The Parent Company shall submit to the FDIC such reports as may be                  requested by the FDIC to keep the FDIC informed as to the Parent Company's financial                  condition, systems for monitoring and controlling financial, compliance, and operating                  risks, and transactions with the Applicant; and as to compliance by Parent Company and                  its subsidiaries and affiliates, including the Applicant, with applicable provisions of the                  FDI Act or other Federal laws that the FDIC has specific jurisdiction to enforce against                  the Parent Company and its subsidiaries, including, without limitation, those laws and                  regulations governing transactions and relationships between any depository institution                  and its affiliates.             e)    Records. The Parent Company shall maintain such records as the FDIC may deem                  necessary to assess the risks to the Applicant or the Deposit Insurance Fund.             ~     Board Representation. The Parent Company shall limit its representation, and the                  representation of its subsidiaries and affiliates, direct and indirect, on the Board of                  Directors of the Applicant to no snore than twenty-five (25) percent of the members of                  such Board of Directors,             g)    Control. The Parent Company shall provide written notification to the FDIC within                  thirty (30) calendar days of becoming aware of any person who newly acquires or 

 

DocuSign Envelope ID: 46663508-267C-4318-8683-D004D7A5098C                    reacquires control, directly or indirectly, by owning, controlling, or holding the power to                  vote ten (10) percent or more of any class of voting shares of the Parent Company or                  acquires the ability to vote teii (10) percent or more of the votes available to be cast in a                  shareholder vote.             h)    Non-Compliance with Agreements.  Parent Company shall notify the FDIC within ten                  (10) calendar days of any non-compliance with any of the covenants in (i) any                  agreements with its lenders or investors, including credit agreements, bond indentures, or                  similar documents; or (ii) any funding or similar agreements.             3.    Contin~encv Planning.             a)    Contingency Plan Required. No later than thirty (30) calendar days prior to the                  Applicant opening for business, the Parent Company shall submit a written Contingency                  Plan to the FDIC, seeking the FDIC's written determination of no supervisory objection                  thereto. Such Contingency Plan shall contain the information required under paragraph 3                  c) hereof.             b)    Adoption of the Contingency Plan. Within ten (10) calendar days of receipt by the                  Parent Company of the FDIC's non-objection to the Contingency Plan, the Parent                  Company shall adopt and thereafter implement and adhere to such Contingency Plan.                  Within ten (10) calendar days of adopting the Contingency Plan, the Parent Company                  shall submit to the FDIC a certified copy of a resolution by the Parent Company's Board                  of Directors approving and adopting the Contingency Plan and committing that in the                  future the Parent Company will take such actions as may be needed for the Applicant to                  successfully implement any recovery actions or disposition strategies provided in the                  Contingency Plan,             c)    Contents of Contingency Plan. The Contingency Plan shall:                   i)     Describe the overall organizational and legal structure of the Parent Company and                         of the Applicant;                   ii)    Identify scenarios in which each of the Parent Company and the Applicant would                         be likely to experience significant financial or operational stress;                   iii)   Describe the Applicant's core business lines and any of the Applicant's operations                         that may be critical in maintaining the financial strength and viability of the                         Applicant or the Parent Company ("critical operations");                   iv)    Identify specific indicators of risk or severe stress that could negatively impact the                         Parent Company's ability to serve as a source of strength for the Applicant and                         describe actions that would be taken by the Parent Company to improve the                         Patent Company's ability to serve as a source of strength for the Applicant; 

 

DocuSign Envelope ID: 46B63508-2B7C-4318-8683-D004D7A5098C                    v)    Identify specific indicators of risk or severe stress that could threaten the                        Applicant's critical operations or otherwise result in the failure or insolvency of                        the Applicant and describe actions that would be taken by the Applicant, or the                        Parent Company, to enable the Applicant to recover from such risk or severe                        stress ("recovery actions");                   vi)   Describe the strategy for ensuring the Applicant is adequately protected from                        risks that may arise from the activities of the Parent Company and any of its                        subsidiaries and affiliates at the time, and for the duration, of any recovery                        actions;                   vii)  Identify the points) at which further recovery actions are unlikely to restore the                        Applicant to financial strength and viability or otherwise remedy financial or                        operational sh~ess;                   viii) Set forth options for the orderly wind down of the Applicant through liquidation,                        sale, or merger, without the appointment of a conservator or receiver (each, a                        "disposition strategy"), through the description of the specific steps, including a                        projected timeline, for the execution of each disposition strategy; and                   ix)   Estimate the amount of capital and liquidity that would be required for the                        Applicant to successfully complete each disposition strategy, including but not                         limited to the source of funds to pay operating expenses and the source of funds to                        pay deposits, other debt, and other obligations.             d)    Material Event. The Parent Company shall submit to the FDIC for determination of no                  supervisory objection an updated Contingency Plan upon the occurrence of any event that                  materially alters:                   i)     the organizational or legal structure of the Parent Company or the Applicant;                   ii)    the core business lines or critical operations of the Applicant; or                   iii)   the financial condition of the Parent Company or the Applicant.             4. Miscellaneous Provisions.             a)    Definitions. The term "Board of Directors" includes, for a corporation, the board of                  directors, and for a limited liability company, the board of managers or the managing                  members, as appropriate. The term "subsidiary" means any company that is directly or                  indirectly controlled by another company, and "control" has the meaning given it in                  section 7(j)(8)(B) of the FDI Act, 12 U.S.C. § 1817(j)(8)(B), and includes the                  presumption of control reflected in section 303.82(b)(1) of the FDIC's Rules and                  Regulations, 12 C.F.R. § 303.82(b)(1). Other terms used in this Agreement that are not                                                                                               4 

 

DocuSign Envelope ID: 46863508-267C-4318-8683-D004D7A5098C                    otherwise defined herein have the meanings given to them in section 3 of the FDI Act, 12                  U.S.C. § 1813.             b)    Enforceability as a Written Agreement. In addition to any other remedies provided by                  law, the parties agree that this Agreement is binding and enforceable by the FDIC as a                  written agreement pursuant to sections 8 and 50 of the FDI Act, 12 U.S.C. §§ 1818 and                  1831aa, against the Applicant, the Parent Company, the Controlling Shareholdet~, and                  their successors and assigns.             c)    Conservatorship or Receivership of tl~e Applicant. In the event of the appointment of                  a conservator or receiver for the Applicant, the obligations of the Parent Company                  hereunder shall survive said appointment and be enforceable by the FDIC as conservator                  or receiver.             d)    Bankruptcy Treatment of Commitments.   The parties agree that obligations of the                  Patent Company and the Applicant contained in this Agreement include commitments to                  maintain the capital and liquidity of the Applicant and, if a bankruptcy petition is filed by                  or against the Parent Company, the obligations of the Parent Company contained in this                  Agreement shall be immediately cured by the Parent Company pursuant to 11 U.S,C. §                  365(0), and any claim for a subsequent breach of the Parent Company's obligations                  herein shall be entitled to priority under ll U.S.C. § 507(a)(9).             e)    Authority of the Parent Company and the Applicant. The'Board of Directors of each                  of the Parent Company and the Applicant have each approved a Resolution authorizing                  the Parent Company and the Applicant to enter into this Agreement. A certified copy of                  each duly adopted Resolution is attached hereto and is incorporated herein by reference.             ~     Governing Law.  This Agreement and the rights and obligations hereunder shall be                  governed by, and shall be construed in accordance with, the Federal laws of the United                  States, and in the absence of controlling Federal laws, in accordance with the laws of the                  State of Delaware.             g)    No Waiver.  No failure or delay in the exercise of any right or remedy on the part of any                  of the parties hereto shall operate as a waiver or termination thereof, nor shall any                  exercise or partial exercise of any right or remedy preclude any other or further exercise                  of such right or remedy or any other right or remedy.             h)    Severability. In the event any one or more of the provisions contained herein should be                  held invalid, illegal, or unenforceable in any respect, the validity, legality, and                  enforceability of the remaining provisions contained herein shall not in any way be                  affected or impaired thereby. The parties shall endeavor in good faith to replace the                  invalid, illegal, or unenforceable provision with a valid provision, the effect of which                  comes as close as possible to that of the invalid, illegal, or unenforceable provision. 

 

DocuSign Envelope ID: 46BB3508-2B7C-4318-8683-D004D7A5098C              i)    Modifications. This Agreement may not be modified, amended, changed, discharged,                  terminated, released, renewed, or extended in any manner except by a writing signed by                  all of the parties.             j)    Addresses for and Receipt of Notice. Any notice, correspondence, or submission                  required by this Agreement shall be provided in writing and shall be delivered by hand or                  sent by United States express mail or commercial express mail, postage prepaid, and                  addressed as follows:             If to the Parent Company:                        Nelnet, Inc.                        Attn: Timothy Tewes, President                        1248 "O" Street, Suite 900                        Lincoln, NE 68508             If to the Controlling Shareholder                        Michael S. Dunlap                        1248 "O" Street, Ste. 900                        Lincoln, NE 68508             If to the Applicant:                        Nelnet Banlc                        Attn: Timothy Tewes                         1248 "O" Street, Ste. 900                        Lincoln, NE 68508             If to the FDIC:                         Associate Director, Division of Risk Management Supervision                         Risk Management Examination Branch                         Federal Deposit Insurance Corporation                         550 17t~' Street, NW                         Washington, DC 20429             k)    No Assignment. This agreement may not be assigned or transferred, in whole or in part,                  without the prior written consent of the FDIC.             1)    Binding on Parties, Successors and Assigns. This Agreement is binding on the parties                  hereto, their successors and assigns.             m)    Joint and Several Liability. The obligations, liabilities, agreements, and commitments                  of the parties contained herein are joint and several, and the FDIC may pursue any right 

 

DocuSign Envelope ID; 46683508-267C-4318-8683-D004D7A5098C                    or remedy that it may have against one or more of the other parties without releasing or                  discharging any other party.             n)    Complete Agreement.  This Agreement is the complete and exclusive statement of the                  agreement between the parties concerning the commitments set forth in the Agreement,                  and supersedes all prior written or oral communications, representations, and agreements                  relating to the subject matter of the Agreement, except that this Agreement does not                  affect or otherwise alter the CALMA,             o)    Counterparts. This Agreement may be executed in two or more counterparts, each of                  which shall be deemed an original and all such counterparts taken together shall                  constitute one and the same Agreement.              IN WITNESS WHEREOF, the parties hereto have duly executed this Agreement as of the day            and year indicated above.                      9ned~  b           N~       ,             B3'                 ocseceoac000aoz.~eff Noordhoel<                  Name:                  Title:    cEo              MI    ~~,9            By:~        ~a~                  39A188C794CE407...                            Mile Dunlap                  Name:                  Title:             N     ~`~'~~i`l'~K            By Qw~I,vY,a, ~t.ass                  e5szze~oeccFa22... Andrea Moss                  Name:                              rest en   o                  T1tle:             FEDERAL DEPOSIT INSURANCE CORPORATION            By:       ,                  Nye:                                                             ~'                  Title:    ~                              F ~=-                                                                                               7

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