Document:

exv10w31

Exhibit 10.31

Execution Copy

AMENDMENT NO. 1 TO NOTE PURCHASE AGREEMENT

     This AMENDMENT NO. 1 TO NOTE PURCHASE AGREEMENT, is made as of January 30, 2009 (this
“Amendment”), to the Note Purchase Agreement (defined below), by TOWN HALL FUNDING I, a statutory
trust duly organized under the laws of the State of Delaware, as the trust (the “Trust”), SALLIE
MAE, INC., a Delaware corporation, as administrator (the “Administrator”), THE BANK OF NEW YORK
MELLON TRUST COMPANY, NATIONAL ASSOCIATION (formerly known as The Bank of New York Trust Company,
N.A.), a national banking association, as the eligible lender trustee (the “Eligible Lender
Trustee”), the CONDUIT LENDERS, the ALTERNATE LENDERS, the LIBOR LENDERS, JPMORGAN CHASE BANK,
N.A., a national banking association, BANK OF AMERICA, N.A., a national banking association,
BARCLAYS BANK PLC, a public limited company organized under the laws of England and Wales, THE
ROYAL BANK OF SCOTLAND PLC, a bank organized under the laws of Scotland, DEUTSCHE BANK AG, NEW
YORK BRANCH, a German banking corporation acting through its New York Branch, CREDIT SUISSE, NEW
YORK BRANCH, the New York branch of a Swiss banking corporation, ROYAL BANK OF CANADA, a Canadian
chartered bank acting through its New York Branch, LLOYDS TSB BANK plc, a bank organized under the
laws of England, MERRILL LYNCH BANK USA, a Utah-chartered industrial loan company, DZ BANK AG
DEUTSCHE ZENTRAL-GENOSSENSCHAFTSBANK, FRANKFURT AM MAIN, NEW YORK BRANCH, a German bank, NATIXIS
FINANCIAL PRODUCTS INC., a Delaware corporation, and BNP PARIBAS, NEW YORK BRANCH, a French bank,
each as agent on behalf of its related Conduit Lenders, Alternate Lenders, LIBOR Lenders and
Program Support Providers (collectively, the “Managing Agents”), and BANK OF AMERICA, N.A., as the
administrative agent for the Conduit Lenders, Alternate Lenders, LIBOR Lenders and Managing
Agents (in such capacity, the “Administrative Agent”). Capitalized terms, unless otherwise defined
herein shall have the meanings set forth in the Note Purchase Agreement.

W I T N E S S E T H

     WHEREAS, the Trust, the Administrator, the Eligible Lender Trustee, J.P. Morgan Securities
Inc. and Banc of America Securities LLC, as lead arrangers, Barclays Bank PLC, the Royal Bank of
Scotland PLC and Deutsche Bank Securities Inc., as co-lead arrangers, Credit Suisse, New York
Branch, as arranger, the Conduit Lenders, the Alternate Lenders, the LIBOR Lenders, the Managing
Agents, the Administrative Agent and JPMorgan Chase Bank, N.A., as syndication agent, are parties
to that certain Note Purchase and Security Agreement, dated as of February 29, 2008 (as amended,
restated, supplemented or otherwise modified from time to time prior to the date hereof, the
“Note Purchase Agreement”) and the parties hereto wish to amend the Note Purchase Agreement as set
forth below;

     WHEREAS, this Amendment is being executed and delivered pursuant to and in accordance with
Section 10.01 of the Note Purchase Agreement; and

     NOW, THEREFORE, in consideration of the Premises and mutual agreements herein contained, the
parties hereto hereby agree as follows:

 

 

ARTICLE I.

AMENDMENTS

     SECTION 1.01. Amendment of Definition of “Scheduled Maturity Date”. The definition
of “Scheduled Maturity Date” in Section 1.01 of the Note Purchase Agreement is hereby amended by
deleting the date “February 27, 2009” and substituting “April 28, 2009” in lieu thereof.

ARTICLE II.

WAIVERS

     SECTION 2.01. Applicability of Section 2.16. The parties hereto do hereby agree that
the requirements of Section 2.16 of the Note Purchase Agreement shall not apply to the amendment
of the definition of “Scheduled Maturity Date” as set forth in Section 1.01 of this
Amendment. Accordingly, the letter re: Notice of Extension of Scheduled Maturity Date Pursuant to
Section 2.16 of the Note Purchase Agreement for Town Hall Funding I, dated January 13, 2009,
delivered by the Administrator on behalf of the Trust shall be of no force or effect. Unless
otherwise waived or modified, the parties hereto agree that the requirements of Section 2.16 of
the Note Purchase Agreement shall apply to any extension of the Scheduled Maturity Date to any
date after April 28, 2009.

     SECTION 2.02. Suspension of “Eligible FFELP Loan” Criterion. The parties hereto do
hereby agree that the requirement set forth in clause (b) of the definition of “Eligible FFELP
Loan” in Section 1.01 of the Note Purchase Agreement that “such Student Loan has not been owned by
the Trust or the Related SPE Trusts for more than 364 days in the aggregate for all such parties”
shall not apply during the period from February 27, 2009 until 5:00 p.m. New York City time on
April 28, 2009.

ARTICLE III.

MISCELLANEOUS

     SECTION 3.01. Fee. In consideration of entering into this Amendment, SLM
Corporation shall pay in immediately available funds to the Administrative Agent, for the ratable
benefit of each Facility Group in accordance with its Pro Rata Share, a one-time nonrefundable
upfront fee in the amount equal to 0.20% of the Maximum Financing Amount as of the date hereof
(the “Fee”), which shall be due and owing on the date hereof.

     SECTION 3.02. Representations. The Administrator (on behalf of the Trust) makes the
following representations and warranties for the benefit of the Administrative Agent and the
Secured Creditors as of the date of this Amendment: (i) each of the representations and warranties
contained in the Note Purchase Agreement is true and correct and (ii) no Amortization Event,
Termination Event, Servicer Default or, to the best of the Trust’s or the Administrator’s
knowledge, Potential Termination Event has occurred and is continuing after giving effect to this
Amendment.

2

 

     SECTION 3.03. Transaction Documents. On and after the Effective Date (as defined
below), any reference to the Note Purchase Agreement in any Transaction Document shall be deemed
to refer to the Note Purchase Agreement as amended by this Amendment and each of the parties
hereto agrees that, for all purposes, this Amendment shall constitute a “Transaction Document”
under and as defined in the Note Purchase Agreement.

     SECTION 3.04. No Course of Dealing. The Administrative Agent, the Conduit Lenders,
the LIBOR Lenders, the Alternate Lenders and the Managing Agents have entered into this Amendment
on the express understanding with the Trust and the Administrator that in entering into this
Amendment, the Administrative Agent, the Conduit Lenders, the LIBOR Lenders, the Alternate Lenders
and the Managing Agents are not establishing any course of dealing with the Trust or the
Administrator. Other than as amended or modified by the terms of this Amendment, the
Administrative Agent’s, the Conduit Lenders’, the LIBOR Lenders’, the Alternate Lenders’ and the
Managing Agents’ rights to require strict performance with all other terms and conditions of the
Note Purchase Agreement and the other Transaction Documents shall not in any way be impaired by
the execution of this Amendment. None of the Administrative Agent, the Conduit Lenders, the LIBOR
Lenders, the Alternate Lenders and the Managing Agents shall be obligated in any manner to execute
any further amendments or waivers in the future.

     SECTION 3.05. Limited Effect. Except as expressly amended hereby, all of the
provisions, covenants, terms and conditions of the Note Purchase Agreement shall continue to be,
and shall remain, in full force and effect in accordance with their respective terms, and are
hereby ratified and confirmed.

     SECTION 3.06. Governing Law. THIS AMENDMENT AND THE RIGHTS AND OBLIGATIONS OF THE
PARTIES HEREUNDER SHALL BE CONSTRUED IN ACCORDANCE WITH AND BE GOVERNED BY THE LAWS OF THE STATE
OF NEW YORK WITHOUT REGARD TO THE CONFLICTS OF LAW PRINCIPLES THEREOF (OTHER THAN SECTIONS
5-1401 AND 5-1402 OF THE NEW YORK GENERAL OBLIGATIONS LAW).

     SECTION 3.07. Execution in Counterparts; Severability. This Amendment may be
executed in any number of counterparts and by different parties hereto in separate counterparts,
each of which when so executed shall be deemed to be an original and all of which when taken
together shall constitute one and the same agreement. Delivery by facsimile or electronic mail of
an executed signature page of this Amendment shall be effective as delivery of an executed
counterpart hereof. In case any provision in or obligation under this Amendment shall be invalid,
illegal or unenforceable in any jurisdiction, the validity, legality and enforceability of the
remaining provisions or obligations, or of such provision or obligation in any other jurisdiction,
shall not in any way be affected or impaired thereby.

     SECTION 3.08. Effective Date. This Amendment shall be automatically effective
without further action by any party as of the date hereof (the “Effective Date”) upon: (a) the
execution and delivery of this Amendment by all parties hereto, (b) the satisfaction of the Rating
Agency Condition, (c) the payment in full of the Fee on the date hereof, (d) the execution and
delivery by McKee Nelson LLP of “no adverse effect” letters, in form and substance
satisfactory to the Administrative Agent, with respect to the opinion letters delivered by McKee
Nelson LLP

3

 

on the Closing Date relating to certain true-sale and substantive consolidation issues and (e) the
receipt by the Administrative Agent of evidence that the other FFELP Loan Facilities have been
amended to extend the “Scheduled Maturity Date” thereunder to a date that is not earlier than
April 28, 2009. Thereafter the Note Purchase Agreement shall be read to include the terms and
waivers set forth herein including, for the avoidance of doubt, Section 3.11 of this Amendment.
For the avoidance of doubt, in the event that any Conduit Lender, Alternate Lender, LIBOR Lender
or Managing Agent does not become party to this Amendment, the amendments and waivers set forth in
this Amendment shall be of no force or effect.

     SECTION 3.09. Expense Provisions Apply. For the avoidance of doubt, Section 10.08
of the Note Purchase Agreement shall apply in respect of this Amendment.

     SECTION 3.10. Eligible Lender Trustee. Notwithstanding anything contained herein to
the contrary, this Amendment has been signed by The Bank of New York Mellon Trust Company,
National Association, not in its individual capacity but solely as Eligible Lender Trustee, and in
no event shall The Bank of New York Mellon Trust Company, National Association have any liability
for the representations, warranties, covenants, agreements or other obligations of the Trust or
the other parties to this Amendment or in any of the certificates, notices or agreements delivered
pursuant hereto, as to all of which recourse shall be had solely to the assets of the Trust.

     SECTION 3.11. Government Sponsored Refinancing. As soon as reasonably practicable
after the effective date thereof, the Administrator shall, or shall cause an Affiliate to, take all
actions necessary to satisfy all conditions to the utilization of each type of government
sponsored facility for the financing of FFELP Loans (each, a “Government Facility”) and shall upon
such satisfaction, to the extent economically reasonable, cause the release and transfer, in
accordance with Section 2.18 of the Note Purchase Agreement of the maximum amount of Trust Student
Loans eligible for such Government Facility which is possible operationally, but in all cases
subject to the amounts and procedures associated with such Government Facility. This provision
shall remain in full force and effect following the occurrence of the Scheduled Maturity Date (as
amended by this Amendment).

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Execution Copy

AMENDMENT NO. 1 TO NOTE PURCHASE AGREEMENT

     This AMENDMENT NO. 1 TO NOTE PURCHASE AGREEMENT, is made as of January 30, 2009 (this
“Amendment”), to the Note Purchase Agreement (defined below), by TOWN CENTER FUNDING I, a
statutory trust duly organized under the laws of the State of Delaware, as the trust (the
“Trust”), SALLIE MAE, INC., a Delaware corporation, as administrator (the “Administrator”), THE
BANK OF NEW YORK MELLON TRUST COMPANY, NATIONAL ASSOCIATION (formerly known as The Bank of New
York Trust Company, N.A.), a national banking association, as the eligible lender trustee (the
“Eligible Lender Trustee”), the CONDUIT LENDERS, the ALTERNATE LENDERS, the LIBOR LENDERS,
JPMORGAN CHASE BANK, N.A., a national banking association, BANK OF AMERICA, N.A., a national
banking association, BARCLAYS BANK PLC, a public limited company organized under the laws of
England and Wales, THE ROYAL BANK OF SCOTLAND PLC, a bank organized under the laws of Scotland,
DEUTSCHE BANK AG, NEW YORK BRANCH, a German banking corporation acting through its New York
Branch, CREDIT SUISSE, NEW YORK BRANCH, the New York branch of a Swiss banking corporation,
ROYAL BANK OF CANADA, a Canadian chartered bank acting through its New York Branch, MERRILL LYNCH
BANK USA, a Utah-chartered industrial loan company, DZ BANK AG DEUTSCHE
ZENTRAL-GENOSSENSCHAFTSBANK, FRANKFURT AM MAIN, NEW YORK BRANCH, a German bank, NATIXIS FINANCIAL
PRODUCTS INC., a Delaware corporation, and BNP PARIBAS, NEW YORK BRANCH, a French bank, each as
agent on behalf of its related Conduit Lenders, Alternate Lenders, LIBOR Lenders and Program
Support Providers (collectively, the “Managing Agents”), and BANK OF AMERICA, N.A., as the
administrative agent for the Conduit Lenders, Alternate Lenders, LIBOR Lenders and Managing
Agents (in such capacity, the “Administrative Agent”). Capitalized terms, unless otherwise
defined herein shall have the meanings set forth in the Note Purchase Agreement.

W I T N E S S E T H

     WHEREAS, the Trust, the Administrator, the Eligible Lender Trustee, J.P. Morgan Securities
Inc. and Banc of America Securities LLC, as lead arrangers, Barclays Bank PLC, the Royal Bank of
Scotland PLC and Deutsche Bank Securities Inc., as co-lead arrangers, Credit Suisse, New York
Branch, as arranger, the Conduit Lenders, the Alternate Lenders, the LIBOR Lenders, the Managing
Agents, the Administrative Agent and JPMorgan Chase Bank, N.A., as syndication agent, are parties
to that certain Note Purchase and Security Agreement, dated as of February 29, 2008 (as amended,
restated, supplemented or otherwise modified from time to time prior to the date hereof, the
“Note Purchase Agreement”) and the parties hereto wish to amend the Note Purchase Agreement as
set forth below;

     WHEREAS, this Amendment is being executed and delivered pursuant to and in accordance
with Section 10.01 of the Note Purchase Agreement; and

     NOW, THEREFORE, in consideration of the Premises and mutual agreements herein contained,
the parties hereto hereby agree as follows:

 

 

ARTICLE I.

AMENDMENTS

     SECTION 1.01. Amendment of Definition of “Scheduled Maturity Date”. The
definition of “Scheduled Maturity Date” in Section 1.01 of the Note Purchase Agreement is
hereby amended by deleting the date “February 27, 2009” and substituting “April 28, 2009” in
lieu thereof.

ARTICLE II.

WAIVERS

     SECTION 2.01. Applicability of Section 2.16. The parties hereto do hereby agree
that the requirements of Section 2.16 of the Note Purchase Agreement shall not apply to the
amendment of the definition of “Scheduled Maturity Date” as set forth in Section 1.01 of
this Amendment. Accordingly, the letter re: Notice of Extension of Scheduled Maturity Date
Pursuant to Section 2.16 of the Note Purchase Agreement for Town Center Funding I, dated
January 13, 2009, delivered by the Administrator on behalf of the Trust shall be of no force or
effect. Unless otherwise waived or modified, the parties hereto agree that the requirements of
Section 2.16 of the Note Purchase Agreement shall apply to any extension of the Scheduled
Maturity Date to any date after April 28, 2009.

     SECTION 2.02. Suspension of “Eligible FFELP Loan” Criterion. The parties hereto do
hereby agree that the requirement set forth in clause (b) of the definition of “Eligible FFELP
Loan” in Section 1.01 of the Note Purchase Agreement that “such Student Loan has not been owned
by the Trust or the Related SPE Trusts for more than 364 days in the aggregate for all such
parties” shall not apply during the period from February 27, 2009 until 5:00 p.m. New York City
time on April 28, 2009.

ARTICLE III.

MISCELLANEOUS

     SECTION 3.01. Fee. In consideration of entering into this Amendment, SLM
Corporation shall pay in immediately available funds to the Administrative Agent, for the ratable
benefit of each Facility Group in accordance with its Pro Rata Share, a one-time nonrefundable
upfront fee in the amount equal to 0.20% of the Maximum Financing Amount as of the date hereof
(the “Fee”), which shall be due and owing on the date hereof.

     SECTION 3.02. Representations. The Administrator (on behalf of the Trust) makes the
following representations and warranties for the benefit of the Administrative Agent and the
Secured Creditors as of the date of this Amendment: (i) each of the representations and warranties
contained in the Note Purchase Agreement is true and correct and (ii) no Amortization Event,
Termination Event, Servicer Default or, to the best of the Trust’s or the Administrator’s
knowledge, Potential Termination Event has occurred and is continuing after giving effect to this
Amendment.

2

 

     SECTION 3.03. Transaction Documents. On and after the Effective Date (as defined below),
any reference to the Note Purchase Agreement in any Transaction Document shall be deemed to refer
to the Note Purchase Agreement as amended by this Amendment and each of the parties hereto agrees
that, for all purposes, this Amendment shall constitute a “Transaction Document” under and as
defined in the Note Purchase Agreement.

     SECTION 3.04. No Course of Dealing. The Administrative Agent, the Conduit Lenders,
the LIBOR Lenders, the Alternate Lenders and the Managing Agents have entered into this Amendment
on the express understanding with the Trust and the Administrator that in entering into this
Amendment, the Administrative Agent, the Conduit Lenders, the LIBOR Lenders, the Alternate Lenders
and the Managing Agents are not establishing any course of dealing with the Trust or the
Administrator. Other than as amended or modified by the terms of this Amendment, the
Administrative Agent’s, the Conduit Lenders’, the LIBOR Lenders’, the Alternate Lenders’ and the
Managing Agents’ rights to require strict performance with all other terms and conditions of the
Note Purchase Agreement and the other Transaction Documents shall not in any way be impaired by
the execution of this Amendment. None of the Administrative Agent, the Conduit Lenders, the LIBOR
Lenders, the Alternate Lenders and the Managing Agents shall be obligated in any manner to execute
any further amendments or waivers in the future.

     SECTION 3.05. Limited Effect. Except as expressly amended hereby, all of the
provisions, covenants, terms and conditions of the Note Purchase Agreement shall continue to
be, and shall remain, in full force and effect in accordance with their respective terms, and
are hereby ratified and confirmed.

     SECTION 3.06. Governing Law. THIS AMENDMENT AND THE RIGHTS AND OBLIGATIONS OF
THE PARTIES HEREUNDER SHALL BE CONSTRUED IN ACCORDANCE WITH AND BE GOVERNED BY THE LAWS OF THE
STATE OF NEW YORK WITHOUT REGARD TO THE CONFLICTS OF LAW PRINCIPLES THEREOF (OTHER THAN
SECTIONS 5-1401 AND 5-1402 OF THE NEW YORK GENERAL OBLIGATIONS LAW).

     SECTION 3.07. Execution in Counterparts; Severability. This Amendment may be
executed in any number of counterparts and by different parties hereto in separate counterparts,
each of which when so executed shall be deemed to be an original and all of which when taken
together shall constitute one and the same agreement. Delivery by facsimile or electronic mail of
an executed signature page of this Amendment shall be effective as delivery of an executed
counterpart hereof. In case any provision in or obligation under this Amendment shall be
invalid, illegal or unenforceable in any jurisdiction, the validity, legality and enforceability
of the remaining provisions or obligations, or of such provision or obligation in any other
jurisdiction, shall not in any way be affected or impaired thereby.

     SECTION 3.08. Effective Date. This Amendment shall be automatically effective
without further action by any party as of the date hereof (the “Effective Date”) upon: (a) the
execution and delivery of this Amendment by all parties hereto, (b) the satisfaction of the Rating
Agency Condition, (c) the payment in full of the Fee on the date hereof, (d) the execution and
delivery by McKee Nelson LLP of “no adverse effect” letters, in form and substance satisfactory
to the Administrative Agent, with respect to the opinion letters delivered by McKee Nelson LLP

3

 

on the Closing Date relating to certain true-sale and substantive consolidation issues and (e) the
receipt by the Administrative Agent of evidence that the other FFELP Loan Facilities have been
amended to extend the “Scheduled Maturity Date” thereunder to a date that is not earlier than
April 28, 2009. Thereafter the Note Purchase Agreement shall be read to include the terms and
waivers set forth herein including, for the avoidance of doubt, Section 3.11 of this Amendment.
For the avoidance of doubt, in the event that any Conduit Lender, Alternate Lender, LIBOR Lender
or Managing Agent does not become party to this Amendment, the amendments and waivers set forth in
this Amendment shall be of no force or effect.

     SECTION 3.09. Expense Provisions Apply. For the avoidance of doubt, Section 10.08
of the Note Purchase Agreement shall apply in respect of this Amendment.

     SECTION 3.10. Eligible Lender Trustee. Notwithstanding anything contained herein to
the contrary, this Amendment has been signed by The Bank of New York Mellon Trust Company,
National Association, not in its individual capacity but solely as Eligible Lender Trustee, and
in no event shall The Bank of New York Mellon Trust Company, National Association have any
liability for the representations, warranties, covenants, agreements or other obligations of the
Trust or the other parties to this Amendment or in any of the certificates, notices or agreements
delivered pursuant hereto, as to all of which recourse shall be had solely to the assets of the
Trust.

     SECTION 3.11. Government Sponsored Refinancing. As soon as reasonably practicable
after the effective date thereof, the Administrator shall, or shall cause an Affiliate to,
take all actions necessary to satisfy all conditions to the utilization of each type of government
sponsored facility for the financing of FFELP Loans (each, a “Government Facility”) and shall upon
such satisfaction, to the extent economically reasonable, cause the release and transfer, in
accordance with Section 2.18 of the Note Purchase Agreement of the maximum amount of Trust Student
Loans eligible for such Government Facility which is possible operationally, but in
all cases subject to the amounts and procedures associated with such Government Facility. This
provision shall remain in full force and effect following the occurrence of the Scheduled Maturity
Date (as amended by this Amendment).

[THE REMAINDER OF THIS PAGE IS INTENTIONALLY BLANK]

4exv10w32

Exhibit No. 10.32

SLM Corporation Incentive Plan Stock Option Agreement

Net-Settled, Performance Vested Options — 2009

	A.	 	Option Grant. Net-Settled Stock Options (the “Options”) to purchase a total of ___
shares of Common Stock, par value $.20, of SLM Corporation (the “Corporation”) are hereby
granted to ___subject in all respects to the terms and provisions of the SLM Corporation
Incentive Plan (the “Plan”), which is incorporated herein by reference, and this Stock Option
Agreement (the “Agreement”). Certain capitalized terms not otherwise defined herein are
defined in the Plan. In the event of any conflict between the provisions of this Agreement
and the provisions of the Plan, the terms of the Plan control, except as expressly stated
otherwise herein. The Options are non-qualified stock options and are not intended to qualify
as incentive stock options under Section 422 of the Internal Revenue Code of 1986, as amended,
and will be interpreted accordingly.
	 
	B.	 	Option Price. The purchase price per share is $11.21 dollars (the ”Option
Price”).
	 
	C.	 	Grant Date. The date of grant of these Options is January 29, 2009 (the “Grant
Date”).
	 
	D.	 	Vesting; Exercisability. The Options are not vested as of the Grant Date. One-third
of the Options will vest upon the later of the first anniversary of the Grant Date and the
date that the Corporation announces its 2009 fiscal year results, based on the extent to which
the “core earnings” net income target established under the 2009 business plan is achieved,
using the vesting schedule set forth below; one-third of the Options will vest upon the later
of the second anniversary of the Grant Date and the date that the Corporation announces its
2010 fiscal year results, based on the extent to which the “core earnings” net income target
established under the 2010 business plan is achieved, using the vesting schedule set forth
below; and one-third of the Options will vest upon the later of the third anniversary of the
Grant Date and the date that the Corporation announces its 2011 fiscal year results, based on
the extent to which the “core earnings” net income target established under the 2011 business
plan is achieved, using the vesting schedule set forth below. After each annual determination
of the level of achievement of the “core earnings” net income target and the extent of vesting
of each one-third of the Options, any remaining unvested Options of the one-third of Options
eligible for vesting in that year will be forfeited and cancelled.
	 
	 	 	Vesting schedule for each year as follows:

	 	 	 	 	 
	Achievement of	 	 
	Plan	 	 
	"Core Earnings"	 	 
	Net Income	 	Vesting
	75%+
	 	 	100	%
	70%
	 	 	95	%
	65%
	 	 	90	%
	60%
	 	 	85	%
	55%
	 	 	80	%
	50%
	 	 	75	%
	45%
	 	 	70	%
	40%
	 	 	65	%
	35%
	 	 	60	%
	30%
	 	 	55	%
	25%
	 	 	50	%
	<25%
	 	 	0	%

	 	•	 	Upon termination of employment for any reason, other than death, Disability or
Involuntary Termination, or as provided in the SLM Corporation Change in Control Severance
Plan for Senior Officers any unvested Options will not vest and will be canceled.
	 
	 	•	 	Upon termination of employment for Misconduct, any Options, vested or unvested, are
forfeited.
	 
	 	•	 	Upon termination for death or Disability, vested Options (taking into account any
vesting acceleration set forth above) are exercisable until the earlier of: (1) the
Expiration Date; or (2) one year from the date of termination.
	 
	 	•	 	Upon termination of employment for all reasons except death or Disability, vested
Options (taking into account any vesting acceleration set forth above) are exercisable
until the earlier of: (1) the Expiration Date; or (2) three months from the date of
termination.

	E.	 	Expiration. These Options expire ten years from the Grant Date (the “Expiration
Date”), subject to the provisions of the Plan and this Agreement, which may provide for
earlier expiration in certain instances, including Optionee’s termination of employment.
	 
	D.	 	Non-Transferable; Binding Effect. These Options may not be transferred except as
provided for in the Plan, and may be exercised during the lifetime of the Optionee only by him
or her. The terms of these Options shall be binding upon the executors, administrators,
heirs, and successors of the Optionee.
	 
	E.	 	Net-Settlement upon Option Exercise; Taxes. These Options shall be exercised only in
accordance with the terms of this Agreement. Each exercise must be for no fewer than fifty
(50) Options, other than an exercise for all remaining Options. Upon

Page 1of 4

 

Exhibit No. 10.32

SLM Corporation Incentive Plan Stock Option Agreement

Net-Settled, Performance Vested Options — 2009

	 	 	exercise of all or part of the Options, the Optionee shall receive from the Corporation the
number of shares of Common Stock resulting from the following formula: the total number of
Options exercised less the sum of “Shares for the Option Cost” and “Shares for Taxes”, rounded
up to the nearest whole share. “Shares for the Option Cost” equals the Option Price multiplied
by the number of Options exercised divided by the fair market value of SLM common stock at the
time of exercise. “Shares for Taxes” equals the tax liability (the statutory withholding
maximum) divided by the fair market value of SLM common stock at the time of exercise. Optionee
shall receive cash for any resulting fractional share amount. As a condition to the issuance of
shares of Common Stock of the Corporation pursuant to these Options, the Optionee agrees to
remit to the Corporation (through the procedure described in this paragraph) at the time of any
exercise of these Options any taxes required to be withheld by the Corporation under federal,
state, or local law as a result of the exercise of these Options.
	 
	H.	 	Vesting Upon Change In Control. Notwithstanding anything to the contrary in this
Agreement, in the event of a Change of Control Transaction involving a merger, consolidation
or reorganization and in which the Corporation is not the Surviving Corporation, if the terms
of such transaction do not provide for the Surviving Corporation to adopt and assume the
Options (with any appropriate adjustment to the number and type of shares subject to such
Options), the Options shall become 100 percent vested and (if applicable) exercisable and
shall be settled and (if applicable) exercised in full as of the time immediately prior to the
consummation of such Change of Control Transaction.
	 
	 	 	In the event that, as a result of the Options becoming exercisable in connection with a Change
in Control, any state, local or federal taxing authority imposes any taxes on the Optionee that
would not be imposed but for the occurrence of a Change in Control, including any excise tax
under Section 4999 of the Internal Revenue Code and any successor or comparable provision, then
the Corporation (including any successor to the Corporation) shall pay to the Optionee at the
time any such tax becomes payable an amount equal to the amount of any such tax imposed on the
Optionee (the amount of any such payment, the “Parachute Tax Reimbursement”). In addition, the
Corporation (including any successor to the Corporation) shall “gross up” such Parachute Tax
Reimbursement by paying to the Optionee at the time any such tax becomes payable an additional
amount equal to the aggregate amount of any additional taxes (whether income taxes, excise
taxes, special taxes, employment taxes or otherwise) that are payable by the Optionee as a
result of the Parachute Tax Reimbursement being payable to the Optionee and/or as a result of
the additional amounts payable to the Optionee pursuant to this sentence, such that after
payment of such additional taxes the Optionee shall have been paid on an after-tax basis an
amount equal to the Parachute Tax Reimbursement.
	 
	I.	 	Clawback Provision. If the Board of Directors of the Corporation, or an appropriate
committee thereof, determines that any fraud or intentional misconduct by an officer at the
level of Senior Vice President or above (the “Officer”) was a significant contributing factor
to the Corporation having to restate all or a portion of its financial statement(s), the Board
or committee shall, to the extent permitted by governing law, require reimbursement of any
compensation (“spread”) resulting from the exercise of the Options by the Officer: 1) if such
exercise occurred during the 12-month period following the first public disclosure of the
incorrect financial statement; and 2) in the Board or committee’s judgment, to the extent
that the filing of the false financial statement negatively impacted the Corporation’s share
price.
	 
	 	 	  Additionally, if the Board of Directors of the Corporation, or an appropriate committee
thereof, determines that any material misstatement of financial results or a performance
metric criteria or any material violation of corporate policy, including compliance and risk
policies, occurs, the Board or committee shall, to the extent permitted by governing law,
require reimbursement of any compensation resulting from the vesting and exercise of Options
and the cancellation of any outstanding Options.
	 
	J.	 	Board Interpretation. The Optionee hereby agrees to accept as binding, conclusive,
and final all decisions and interpretations of the Board of Directors of the Corporation and,
where applicable, the Compensation and Personnel Committee of the Board of Directors (the
“Committee”) concerning any questions arising under this Agreement or the Plan.
	 
	K.	 	Stockholder Rights. The Optionee shall not be deemed a stockholder of the
Corporation with respect to any of the shares of Common Stock subject to the Options, except
to the extent that such shares shall have been purchased and transferred to the Optionee. The
Corporation shall not be required to issue or transfer any shares of Common Stock purchased
upon exercise of the Options until all applicable requirements of law have been complied with
and such shares shall have been duly listed on any securities exchange on which the Common
Stock may then be listed.
	 
	L.	 	No Right to Continued Employment. Nothing in the Plan, in this Agreement or any
other instrument executed pursuant thereto or hereto shall confer upon the Optionee any right
to continued employment with the Corporation or any of its subsidiaries or affiliates.
	 
	M.	 	Amendments for Accounting Charges: The Committee reserves the right to unilaterally
amend this Agreement to reflect any changes in applicable law or financial accounting
standards.
	 
	N.	 	Securities Law Compliance; Restrictions on Resale’s of Option Shares. The
Corporation may impose such restrictions, conditions or limitations as it determines
appropriate as to the timing and manner of any exercise of the Option and/or any

Page 2of 4

 

Exhibit No. 10.32

SLM Corporation Incentive Plan Stock Option Agreement

Net-Settled, Performance Vested Options — 2009

	 	 	resales by the Optionee or other subsequent transfers by the Optionee of any shares of Common
Stock issued as a result of the exercise of the Option, including without limitation (a)
restrictions under an insider trading policy, (b) restrictions that may be necessary in the
absence of an effective registration statement under the Securities Act of 1933, as amended,
covering the Option and/or the Common Stock underlying the Option and (c) restrictions as to the
use of a specified brokerage firm or other agent for exercising the Option and/or for such
resales or other transfers. The sale of the shares underlying the Option must also comply with
other applicable laws and regulations governing the sale of such shares.
	 
	O.	 	Data Privacy. As an essential term of this Option, the Optionee consents to the
collection, use and transfer, in electronic or other form, of personal data as described in
this Option Agreement for the exclusive purpose of implementing, administering and managing
Optionee’s participation in the Plan. By entering into this Agreement and accepting the
Option, the Optionee acknowledges that the Corporation holds certain personal information
about the Optionee, including, but not limited to, name, home address and telephone number,
date of birth, social security number or other identification number, salary, tax rates and
amounts, nationality, job title, any shares of stock held in the Corporation, details of all
options or any other entitlement to shares of stock awarded, canceled, exercised, vested,
unvested or outstanding, for the purpose of implementing, administering and managing the Plan
(“Data”). Optionee acknowledges that Data may be transferred to any third parties assisting
in the implementation, administration and management of the Plan, that these recipients may be
located in jurisdictions that may have different data privacy laws and protections, and
Optionee authorizes the recipients to receive, possess, use, retain and transfer the Data, in
electronic or other form, for the purposes of implementing, administering and managing the
Plan, including any requisite transfer of such Data as may be required to a broker or other
third party with whom the Optionee or the Corporation may elect to deposit any shares of
Common Stock acquired upon exercise of the Option. Optionee acknowledges that Data may be
held only as long as is necessary to implement, administer and manage the Optionee’s
participation in the Plan as determined by the Corporation, and that Optionee may request
additional information about the storage and processing of Data, require any necessary
amendments to Data or refuse or withdraw the consents herein, in any case without cost,
provided however, that refusing or withdrawing Optionee’s consent may adversely affect
Optionee’s ability to participate in the Plan.
	 
	P.	 	Electronic Delivery. The Corporation may, in its sole discretion, decide to deliver
any documents related to any options granted under the Plan by electronic means or to request
Optionee’s consent to participate in the Plan by electronic means. Optionee hereby consents to
receive such documents by electronic delivery and, if requested, to agree to participate in
the Plan through an on-line or electronic system established and maintained by the Corporation
or another third party designated by the Corporation, and such consent shall remain in effect
throughout Optionee’s term of service with the Corporation and thereafter until withdrawn in
writing by Optionee.
	 
	Q.	 	Governing Law. This Agreement shall be governed by and construed in accordance with
the laws of Delaware, without giving effect to principles of conflicts of law.
	 
	R.	 	Notices. All notices, requests, demands and other communications under this
Agreement shall be in writing and shall be deemed to have been duly given if personally
delivered, telefaxed or telecopied to, or, if mailed, when received by, the other party at the
following addresses:
	 
	 	 	If to the Corporation to:

Senior Stock Plan Administrator

Sallie Mae

12061 Bluemont Way

Reston, VA 20190

Fax: (703) 984-6006

	 	 	If to the Optionee, to (i) the last address maintained in the Corporation’s Human Resources
files for the Optionee or (ii) the Optionee’s mail delivery code or place of work at the
Corporation.
	 
	S.	 	Entire Agreement. This Agreement and the Plan together set forth the entire
agreement and understanding between the parties as to the subject matter hereof and supersede
all prior oral and written and all contemporaneous or subsequent oral discussions, agreements
and understandings of any kind or nature.
	 
	T.	 	Miscellaneous. In the event that any provision of this Agreement is declared to
be illegal, invalid or otherwise unenforceable by a court of competent jurisdiction, such
provision shall be reformed, if possible, to the extent necessary to render it legal, valid
and enforceable, or otherwise deleted, and the remainder of this Agreement shall not be
affected except to the extent necessary to reform or delete such illegal, invalid or
unenforceable provision. The headings in this Agreement are solely for convenience of
reference, and shall not constitute a part of this Agreement, nor shall they affect its
meaning, construction or effect. The Optionee shall cooperate and take such actions as may be
reasonably requested by the Corporation in order to carry out the provisions and purposes of
the Agreement. The Optionee is responsible for complying with all laws applicable to
Optionee, including federal and state securities reporting laws.

Page 3of 4

 

Exhibit No. 10.32

SLM Corporation Incentive Plan Stock Option Agreement

Net-Settled, Performance Vested Options — 2009

The Optionee must contact Merrill Lynch to accept the terms of this grant. Merrill Lynch can be
contacted at www.benefits.ml.com or by phone at 1-877-SLM-ESOP. If Optionee fails to accept the
terms of this grant, the Options may not be exercised.

	 	 	 	 	 
	 	SLM CORPORATION

 	 
	 	BY:  	/s/ Albert L. Lord
 	 
	 	 	Albert L. Lord 	 
	 	 	Chief Executive Officer 	 
	 

	 
	Accepted by:

	 

	 

	«First» «Last»

	 

	 

	Date

Copies of the Plan Document and Prospectus are available on the Sallie Mae Stock Options Intranet
site located at http://salliemaecentral.com/legal/esop/plandocs.htm. Paper copies of these
documents can be obtained by contacting the Plan Administrator by sending an email to
stock.options@salliemae.com, or to request by fax to (703) 984-6006.

Page 4of 4

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