Document:

exv10w12

 

Exhibit 10.12

AMENDED AND RESTATED

LOAN PURCHASE AGREEMENT

     This Amended and Restated Loan Purchase Agreement is made and entered into as of the 1st day
of March, 2005 by and among CONSOLIDATION LOAN FUNDING II, LLC, as seller (“Seller”), HIGHER
EDUCATION FUNDING I, a Delaware statutory trust, as purchaser (“Purchaser”), THE BANK OF NEW YORK
TRUST COMPANY, N.A., not in its individual capacity but as eligible lender trustee for Seller (in
such capacity, “Seller ELT”), and THE BANK OF NEW YORK, not in its individual capacity but as
eligible lender trustee for Purchaser (in such capacity, “Purchaser ELT”).

WITNESSETH:

     WHEREAS, Seller, through its eligible lender trustee, is engaged in a program of originating,
funding, purchasing, holding and selling Eligible Loans;

     WHEREAS, Purchaser, through its eligible lender trustee, is engaged in a program of
purchasing, holding and selling Eligible Loans;

     WHEREAS, Seller, through its eligible lender trustee, desires to sell to Purchaser, through
its eligible lender trustee, certain Eligible Loans in accordance with the terms and conditions of
this Agreement;

     WHEREAS, Seller ELT holds legal title to, and serves as eligible lender trustee with respect
to, Eligible Loans on behalf of Seller;

     WHEREAS, Purchaser ELT holds legal title to, and serves as eligible lender trustee with
respect to, Eligible Loans on behalf of Purchaser;

     WHEREAS, Seller and Purchaser are parties to the Loan Purchase Agreement dated as of January
1, 2004 (the “Original Agreement”); and

     WHEREAS, the parties hereto desire to amend and restate the Original Agreement.

     NOW, THEREFORE, in consideration of the foregoing premises and mutual covenants herein
contained, the parties agree to amend and restate the Original Agreement as follows:

ARTICLE I

DEFINITIONS

     Unless the context otherwise requires, capitalized terms defined in the Indenture of Trust and
used but not defined in this Agreement shall have the meanings set forth in the Indenture of Trust.
The following words and terms used in this Agreement shall have the following meanings unless
otherwise provided herein or unless the context or use clearly indicates another or different
meaning or intent:

     “Act” shall mean Title IV, Part B of the Higher Education Act of 1965 (20 USC § 1071
et. seq.), and includes insofar as the context requires Title VII of the Public Health Service Act

 

 

(42 USC. §292 et seq.), as either is amended and in effect from time to time, or any successor
enactment thereto, the effective administrative regulations promulgated thereunder, and any binding
directives issued by the Secretary pursuant thereto.

     “Agreement” shall mean this Amended and Restated Loan Purchase Agreement, including all
exhibits attached hereto, and any supplements or amendments hereto.

     “Certificate of Insurance” shall mean a certificate of federal loan insurance issued with
respect to an Eligible Loan by the Secretary pursuant to the Act.

     “Commitment” shall mean Seller’s commitment to sell Eligible Loans to Purchaser pursuant to
Section 2.1 hereof.

     “Contract of Insurance” shall mean a contract of insurance under the Act between the Secretary
and the Eligible Lender Trustee for the benefit of the Seller or the Secretary and the Eligible
Lender Trustee for the benefit of the Purchaser, providing for the Insurance of Student Loans.

     “Eligible Lender Trust Agreement” means (i) the Eligible Lender Trust Agreement, dated as of
January 1, 2004, between the Purchaser and the Eligible Lender Trustee, as trustee, and any similar
agreement entered into by the Purchaser and an “eligible lender” under the Higher Education Act
pursuant to which such “eligible lender” holds Student Loans as legal owner in trust for the
Purchaser as beneficial owner, in each case as supplemented or amended from time to time; or (ii)
the Eligible Lender Trust Agreement, dated as of January 1, 2004 between the Seller and the
Eligible Lender Trustee, as trustee, and any similar agreement entered into by the Seller and an
“eligible lender” under the Higher Education Act pursuant to which such “eligible lender” holds
Student Loans as legal owner in trust for the Seller as beneficial owner, in each case as
supplemented or amended from time to time; as is applicable.

     “Eligible Lender Trustee” means, for Seller, Seller ELT, as trustee under the applicable
Eligible Lender Trust Agreement, and its successors and assigns in such capacity and, for
Purchaser, Purchaser ELT as trustee under the applicable Eligible Lender Trust Agreement, and its
successors and assigns in such capacity.

     “Indenture of Trust” means the Amended and Restated Indenture of Trust, dated as of March 1,
2005, among Purchaser, The Bank of New York, as Eligible Lender Trustee, and The Bank of New York,
as Trustee, as the same may be amended or supplemented from time to time.

     “Insurance” or “Insured” or “Insure” shall mean, with respect to a Student Loan, the insurance
by the Secretary under the Act (as evidenced by a Contract of Insurance issued or entered into
under the provisions of the Act) of the maximum percentage of the principal of and accrued interest
on such Student Loan allowed under the Act with respect to such Student Loan.

     “Insured Loan” shall mean a Student Loan which is Insured.

     “Loan Transfer Addendum” shall mean a loan transfer addendum substantially in the form set
forth as Exhibit A attached hereto and incorporated herein by this reference.

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     “Original Agreement” is defined in the recitals.

     “Portfolio” shall mean a group of Eligible Loans sold pursuant to Section 2.1 hereof on a
Scheduled Sale Date.

     “Principal Balance” shall mean the original principal amount of a Student Loan,
plus  capitalized interest (if any) and items which may not be guaranteed or
insured (such as late charges), less  payments by or on behalf of the Student
Borrower.

     “Purchase Price” shall mean the price as set forth in the Loan Transfer Addendum.

     “Purchaser” is defined in the preamble.

     “Purchaser ELT” is defined in the preamble.

     “Scheduled Sale Date” shall mean any date designated as such in a communication delivered
pursuant to Section 4.3(a) of this Agreement and in an applicable Loan Transfer Addendum for
purchase of a Portfolio of Eligible Loans pursuant to this Agreement, unless such date is changed
by mutual agreement of the parties, in which case Scheduled Sale Date shall be any new date so
agreed to by the parties.

     “Secretary” shall mean the Secretary of the United States Department of Education or any
successor to the pertinent functions of that official or department under the Act, or, when the
context so requires, the former Commissioner of Education of the former United States Department of
Health, Education and Welfare and includes the Secretary of the United States Department of Health
and Human Services.

     “Seller” is defined in the preamble.

     “Seller ELT” is defined in the preamble.

     “Student Borrower” shall mean the obligor on a Student Loan.

ARTICLE II

LOAN SALE COMMITMENT

     2.1 Loan Sale Commitment. Subject to the terms and conditions of this Agreement, and
in express reliance upon the representations, warranties and covenants set forth herein, Seller
(and, with respect to legal title thereto, Seller ELT on behalf of Seller ) agrees to
sell, and Purchaser (and, with respect to legal title thereto, Purchaser ELT on behalf of
Purchaser) agrees to purchase, on the applicable Scheduled Sale Date all Student Loans identified
in the loan transfer schedule attached to the applicable Loan Transfer Addendum to the extent such
Student Loans meet all eligibility requirements and to the extent the Purchaser has the funds
available to purchase such Student Loans.

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ARTICLE III

SERVICING

     3.1 Servicing of Other Eligible Loans. All of the Eligible Loans that are sold
pursuant to Section 2.1 hereof are currently serviced (or will be serviced on the Scheduled Sale
Date) by the Servicer(s) identified in the Loan Transfer Addendum. Such Servicer shall either be
Great Lakes Educational Loan Services, Inc., ACS Education Services Inc. or another servicer with
whom Purchaser has a servicing agreement that is satisfactory to (i) The Bank of New York or its
successor as Trustee under the Indenture of Trust and (ii) The Bank of New York or its successor as
Purchaser ELT. On the effective date for the sale of those Eligible Loans, Purchaser shall cause
the current servicer(s) or such other servicer(s) as Purchaser may select to commence servicing
such Portfolio at Purchaser’s expense and under the identification number of Purchaser or its
designee.

ARTICLE IV

SALE/PURCHASE OF PORTFOLIOS

     4.1 Tender of Eligible Loans to Purchaser. With respect to a Portfolio of Eligible
Loans to be sold pursuant to Section 2.1 hereof, prior to or on the applicable Scheduled Sale Date
(or at such other time as the parties may agree), Seller shall furnish Purchaser or its designee
with a list of the Eligible Loans to be included in such Portfolio, and shall authorize and direct
the Servicer of the Eligible Loans to release such information and documentation to Purchaser or
its designee, in its reasonable judgment, deems necessary and appropriate to undertake a review of
such loans to determine whether (i) such loans constitute Eligible Loans, and (ii) the Portfolio,
aggregated with the other Eligible Loans that have been sold to Purchaser by Seller if appropriate,
comply with the requirements set forth in Section 3.1 hereof.

     4.2 Conditions of Purchase. Purchaser’s obligation to purchase and pay for a Student
Loan in a Portfolio hereunder shall be subject to the following conditions precedent:

     (a) the Eligible Loans in the Portfolio, aggregated with the other Eligible Loans that
have been sold to Purchaser by Seller if appropriate, shall meet the requirements described
in Section 3.1 hereof;

     (b) all representations, warranties and statements by or on behalf of Seller contained
in this Agreement with respect to such Student Loan are true on the Scheduled Sale Date
relating to such Student Loan;

     (c) any notification to or approval by the Secretary or Guarantee Agency required by
the Act or the Guarantee Agreement as a condition to the assignment of such Student Loan
shall have been made or received and evidence thereof delivered to both Purchaser and
Purchaser ELT;

     (d) without a prior Rating Agency Confirmation, all Student Loans purchased pursuant to
this Agreement shall have been originated by Great Lakes Educational Loan Services, Inc. or
ACS Education Services, Inc.; and

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     (e) the entire interest of Seller in such Student Loan shall have been duly assigned by
endorsement, such endorsement to be without recourse except as provided in Article V hereof.

     4.3 Consummation of Sale and Purchase of Portfolio. To consummate the sale and
purchase of a Portfolio of Eligible Loans, on or before the applicable Scheduled Sale Date, Seller
shall deliver via facsimile to Purchaser ELT a Loan Transfer Addendum, the Seller’s Closing
Certificate, a form of which is attached as Exhibit B, and such instruments of transfer, including
a bill of sale, a form of which is attached as Exhibit D, and blanket endorsement, a form of which
is attached as Exhibit C, as Purchaser shall reasonably deem necessary for conveyance of title of
the Eligible Loans contained in the Portfolio free and clear of all liens, encumbrances and
security interests. Seller shall retain all ownership rights with respect to Eligible Loans in a
Portfolio at all times prior to the effective sale of such Portfolio. Purchaser shall pay for any
reasonable transfer fees as may be required to be paid to the Secretary or to the Servicer.

     (a) On each Scheduled Sale Date, Seller shall arrange for the Servicer of the Eligible
Loans to notify the Eligible Lender Trustees via facsimile, by no later than 12:00 noon EST
or EDT, as is applicable, that (i) such day is a Scheduled Sale Date and (ii) the dollar
amount of the Eligible Loans which are going to be disbursed by the Servicer on such
Scheduled Sale Date. Seller shall also arrange for the Servicer of the Eligible Loans to
email to the Seller, the Issuer Administrator and Purchaser ELT a detailed roster of the
Eligible Loans that were so disbursed.

     (b) By 12:00 noon EST or EDT, as is applicable, on such Scheduled Sale Date, Seller
shall deliver to Purchaser ELT a Loan Transfer Addendum.

     (c) On such Scheduled Sale Date, after receipt of the aforesaid Loan Transfer Addendum
and the documentation required to be provided by this Section, Purchaser shall arrange for a
transfer into an Account or Accounts maintained at The Bank of New York, designated by
Seller and satisfactory to Purchaser, or wire transfer as directed by the Purchaser, the
amount necessary for the purchase of the Eligible Loans. The purchase and sale of the
Portfolio shall be effective simultaneously with the payment of the Purchase Price.

     4.4 Other Information and Documents. Seller shall furnish or make available to
Purchaser such additional information concerning Seller’s Student Loan portfolio as Purchaser may
reasonably request. Seller and Seller ELT shall execute all other documents and take all other
steps as may be reasonably requested by Purchaser or Purchaser ELT from time to time to effect the
sale hereunder of a Portfolio of Eligible Loans.

ARTICLE V

REPURCHASE OBLIGATION OF SELLER

     5.1 Conditions Precedent to Repurchase Obligation. At the request of Purchaser or its
Eligible Lender Trustee, Seller shall repurchase any Student Loan purchased by Purchaser pursuant
to this Agreement if:

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     (a) any representation or warranty made or furnished by Seller in or pursuant to this
Agreement with respect to such Student Loan shall prove to have been materially incorrect as
to such Student Loan, unless resulting from an act or omission of Purchaser;

     (b) the Secretary or a Guarantee Agency, as the case may be, refuses to honor all or
part of a claim filed with respect to such Student Loan (including any claim for interest
subsidy, Special Allowance Payments, Insurance, reinsurance or Guarantee payments) on
account of any circumstance or event that occurred prior to the sale of such Student Loan to
Purchaser, unless resulting from an act or omission of Purchaser; or

     (c) On account of any wrongful or negligent act or omission of Seller or its servicing
agent that occurred prior to the sale of such Student Loan to Purchaser, a defense is
asserted by a maker (or endorser, if any) of such Student Loan with respect to his or her
obligation to pay all or any part of such Student Loan, and Purchaser or Purchaser ELT in
good faith believes that the facts reported, if true, raise a reasonable doubt as to the
enforceability of such Student Loan.

     5.2 Repurchase by Seller. Upon the occurrence of any of the conditions set forth in
Section 5.1 hereof with respect to a Student Loan and upon the request of Purchaser or
Purchaser ELT, Seller shall pay to Purchaser ELT, for the account of Purchaser, an amount equal to
the then-outstanding principal balance of such Student Loan, plus any premium in excess of par paid
as part of the Purchase Price with respect to such Student Loan, plus interest and Special
Allowance Payments accrued and unpaid with respect to such Student Loan from the applicable
Scheduled Sale Date to and including the date of repurchase, plus any attorneys’ fees, legal
expenses, court costs, servicing fees or other expenses incurred by Purchaser, Purchaser ELT or the
appropriate successors or assigns in connection with such Student Loans. Upon payment of such
amount, Purchaser and Purchaser ELT shall take all necessary action to release and re-convey to
Seller (and Seller ELT) all of their respective interests in such Student Loan free and clear of
any lien or security interest created by Purchaser or Purchaser ELT.

ARTICLE VI

ONGOING OBLIGATIONS OF SELLER

     6.1 Obligation of Seller to Forward Payments. Seller shall promptly remit, or cause
to be remitted, to Purchaser ELT as it may direct, all funds received by Seller after the Scheduled
Sale Date for a Student Loan sold pursuant to this Agreement which constitute payments of
principal, or interest or Special Allowance Payments accrued after such Scheduled Sale Date with
respect to such Student Loan.

     6.2 Obligation of Seller to Forward Communications. Seller shall immediately transmit
to Purchaser any communication received by Seller after the Scheduled Sale Date with respect to a
Student Loan or the borrower under such a Student Loan. Such communication shall include, but not
be limited to, letters, notices of death or disability, adjudication of bankruptcy and similar
documents and forms requesting deferment of repayment or loan cancellations.

     6.3 Notification to Student Borrowers. Seller and Purchaser shall cause the Servicers
to provide each borrower under the Eligible Loans purchased under this Agreement with notice

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of the
assignment and transfer to Purchaser ELT for the account and on behalf of Purchaser of Seller’s
interest in such Eligible Loans as required by the Act.

     6.4 No Modification of Lender Agreements. Seller will consent to no amendments to, or
modifications of, the Contract of Insurance or Guarantee Agreement that may affect Eligible Loans
which are sold or listed on a Loan Transfer Addendum for sale pursuant to this Agreement without
(i) the prior written consent of Purchaser, which consent shall not be unreasonably withheld, and
(ii) Rating Agency Confirmation. Amendments or modifications required by the Act are excluded from
the requirement of this Section 6.4.

ARTICLE VII

REPRESENTATIONS, WARRANTIES AND COVENANTS

     7.1 Representations. Warranties and Covenants of Seller. Seller hereby represents,
covenants, and warrants to Purchaser that:

     (a) Organization and Authority of Seller. Seller is duly organized, validly
existing and in good standing under the laws of the State of Delaware, and has all necessary
statutory power and authority to own its assets and carry on its business as now being
conducted; Seller has, and its officers and Seller ELT acting on its behalf have, all
necessary statutory power and authority to make and perform this Agreement, and has the
power and authority to sell, assign and transfer Student Loans to Purchaser and Purchaser
ELT, and to repurchase Student Loans as required under the terms hereof.

     (b) Eligible Lender Status. Seller ELT, if applicable, is an “eligible lender”
under the Act.

     (c) Legal and Binding Obligation. The execution, delivery and performance of
this Agreement by Seller have been duly authorized by all necessary corporate action, and do
not require any stockholder approval or approval or consent of, or notice to, any trustee or
holders of indebtedness or obligations of Seller; upon due execution and delivery by the
parties hereto, this Agreement will constitute the legal, valid and binding obligation of
Seller, enforceable in accordance with its terms.

     (d) No Conflicts. Neither the execution, delivery or performance by Seller of
this Agreement, nor the consummation or performance by Seller of the transactions
contemplated hereby, will conflict with, result in a violation of, or constitute a
default (or an event which could constitute a default with the passage of time or notice or
both) under, (i) any of the terms of Seller’s charter or bylaws, or (ii) any indenture,
mortgage, contract or other agreement to which Seller is a party or by which it or its
properties are bound, or any law or regulation by which it or its properties are bound,
where, in the case of this clause (ii), such conflict, violation or default could have a
material adverse effect on Seller’s ability for perform its obligations hereunder. Seller
is not a party to or bound by any agreement or instrument or subject to any charter or other
corporate restrictions or judgment, order, writ, injunction, decree, law, rule or regulation
which may materially and adversely affect the ability of Seller to perform its obligations
under this Agreement.

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     (e) No Defaults or Violations. Seller is not in default under any mortgage,
deed of trust, indenture or other instrument or agreement to which Seller is a party or by
which it or its properties are bound, or in violation of any law or regulation, which
default or violation could have a material adverse effect on Seller’s ability for perform
its obligations hereunder.

     (f) No Consents. No consent, approval or authorization of any government or
governmental body, including (without limitation) the Office of Thrift Supervision, the
Federal Deposit Insurance Corporation, the Comptroller of the Currency, the Board of
Governors of the Federal Reserve System or any state bank regulatory agency, is required in
connection with the execution, delivery and performance of this Agreement, or the
consummation of the transactions contemplated hereby.

     (g) No Litigation. There are no pending or threatened actions or proceedings
by or before any court, administrative agency or arbitrator, that could if adversely
determined, materially and adversely affect the ability of Seller to perform its obligations
hereunder, and there are no presently existing orders of any court, administrative agency or
arbitrator that could have a material and adverse effect on the ability of Seller to perform
its obligations hereunder.

     (h) Continuing Obligations of Seller. Seller agrees that during the term of
this Agreement, it will (i) remain in good standing and qualified to do business under the
laws of the State of Delaware and the jurisdictions in which it operates, (ii) conduct its
business in accordance with all applicable state and federal laws, and (iii) continue to be
qualified to carry out this Agreement.

     7.2 Representations, Warranties and Covenants of Seller with Respect to Student Loans.
Seller hereby represents, covenants, and warrants to Purchaser with respect to each Student Loan
to be sold hereunder that, except for any condition resulting from an act or omission of Purchaser,
as of the Scheduled Sale Date for such Student Loan:

     (a) Accuracy of Information. Any information furnished by Seller to Purchaser
or its agents with respect to such Student Loan is true, complete and correct.

     (b) Validity of Loans. Such Student Loan has been duly executed and delivered
and constitutes the legal, valid and binding obligation of the maker (and the endorser, if
any) thereof, enforceable in accordance with its terms.

     (c) No Defenses Against Repayment of Loans. The amount of the unpaid principal
balance of such Student Loan is true and owing, and no counterclaim, offset, defense or
right to rescission exists with respect to such Student Loan which can be asserted and
maintained or which, with notice, lapse of time, or the occurrence or failure to occur of
any act or event, could be asserted and maintained by the borrower against the Eligible
Lender Trustee as assignee thereof. Seller shall take all reasonable actions to assure that
no maker of such Student Loan has or may acquire a defense to the payment thereof. The rate
of interest carried by such Student Loan is the maximum which was allowable by law at the
time the loan was made, and such Student Loan does not carry a

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rate of interest in excess of
that permitted by the provisions of the Act or such other rate as was applicable under a
borrower’s benefit program.

     (d) Ownership and Location of Loans: Existence of Liens. Seller is the sole
owner and holder of title to such Student Loan and has full right and authority to sell and
assign the same free and clear of all liens, pledges or encumbrances, and upon the
endorsement and delivery of promissory notes evidencing such Student Loan to Eligible Lender
Trustee on behalf of Purchaser pursuant to this Agreement, Eligible Lender Trustee on behalf
of Purchaser will acquire full right, title and interest in such Student Loan free and clear
of all liens, pledges or encumbrances whatsoever. All documentation relating to such Student
Loan, including the original promissory note for such Student Loan, is now in the possession
of the servicer thereof.

     (e) Guarantee and Insurance on Loans. Such Student Loan is either Insured or
Guaranteed. If such Student Loan is an Insured Loan, a Contract of Insurance is in full
force and effect with respect thereto, the applicable Certificates of Insurance are valid
and binding upon the parties thereto in all respects, Seller is not in default in the
performance of any of its covenants and agreements made in respect thereof, and such
Insurance is freely transferable as an incident to the sale of such Student Loan. With
respect to all Guaranteed Loans being acquired, a Guarantee Agreement is in full force and
effect with respect thereto and is valid and binding upon the parties thereto in all
material respects, Seller is not in default in the performance of any of its covenants and
agreements made in such Guarantee Agreement, and such Guarantee is freely transferable as an
incident to the sale of such Student Loan. All amounts due and payable to the Secretary or
the Guarantee Agency, as the case may be, have been or will be paid in full by Seller at the
time such Student Loan is sold to Purchaser, and such Student Loan has not at any time been
tendered to either the Secretary or the Guarantee Agency for payment. Seller will not, with
respect to such Student Loan, agree to release the Guarantee Agency or the Secretary from
any of its contractual obligations to Guarantee or Insure such loan, or agree to otherwise
alter, amend or renegotiate any terms or conditions under which such Student Loan is
Guaranteed or Insured, without the express prior written consent of Purchaser and the
Eligible Lender Trustee.

     (f) Compliance with the Act. Such Student Loan complies in all respects with
the requirements of the Act and is an Eligible Loan.

     (g) Compliance with Federal Laws. Such Student Loan was made in compliance
with all applicable local, state and federal laws, rules and regulations, including without
limitation all applicable nondiscrimination, truth-in-lending, consumer credit and usury
laws and is an Eligible Loan.

     (h) No Discrimination. In making such Student Loan, Seller has not
discriminated based upon the educational institutions attended by, or the age, sex, race,
national origin, color, religion, handicapped status, income, attendance at a particular
eligible institution within the area served by Purchaser, length of the Student Borrower’s
educational program, or the Student Borrower’s academic year in school.

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     (i) Due Diligence in Servicing Loans. Seller and any independent servicer have
each exercised and shall continue until the Scheduled Sale Date for such Student Loan to
exercise due diligence and reasonable care in making, administering, servicing and
collecting such Student Loan and Seller has conducted a reasonable investigation of
sufficient scope and content to enable it duly to make the representations and warranties
contained in this Agreement. Seller shall be solely responsible for the payment of the
costs and expenses incident to origination of such Student Loan, without any right of
reimbursement therefor from Purchaser.

     (j) Origination Fees. Seller has reported or shall report the amount of
origination fees (if any) authorized to be collected with respect to such Student Loan
pursuant to the Act to the Secretary for the period in which such fee was authorized to be
collected; and Seller has made and shall make any refund of an origination fee collected in
connection with such Student Loan which may be required pursuant to the Act.

     (k) Insurance Premium. For such Student Loan Seller has reported or shall
report the amount of the insurance premium authorized to be collected, and has paid or shall
pay said premium to the Guarantee Agency or the Secretary with all rights therein inuring to
Purchaser; and in the event that on or prior to the Scheduled Sale Date for such Student
Loan the applicable Student Borrower withdraws within the period specified as qualifying for
a cancellation refund by the Guarantee Agency, Seller agrees to pay the amount of the
premium to be refunded to Purchaser.

     7.3 Representations Warranties and Covenants of Purchaser. Purchaser hereby
represents, covenants, and warrants to Seller that:

     (a) Organization and Authority of Purchaser. Purchaser is a duly organized,
validly existing Delaware statutory trust in good standing under the laws of the State of
Delaware; Purchaser has, and its Eligible Lender Trustee and officers acting on its behalf
have, all necessary statutory power and authority to make and perform this Agreement,
including (without limitation) the power and authority to purchase Student Loans from Seller
under the terms and conditions of this Agreement.

     (b) Legal and Binding Obligation. The execution, delivery and performance of
this Agreement by Purchaser have been duly authorized by all necessary action, and do not
require any member approval or approval or consent of, or notice to, any trustee or holders
of indebtedness or obligations of Purchaser; upon due execution and delivery by the parties
hereto, this Agreement will constitute the legal, valid and binding obligation of Purchaser,
enforceable in accordance with its terms.

     (c) No Conflict. Neither the execution, delivery and performance by Purchaser
of this Agreement, nor the consummation or performance by Purchaser of the transactions
contemplated hereby, will conflict with, result in a violation of, or constitute a default
(or an event which could constitute a default with the passage of time or notice or both)
under, (i) any of the terms of Purchaser’s organizational documents, or (ii) any indenture,
mortgage, contract or other agreement to which Purchaser is a party or by which it or its
properties are bound, or any law or regulation by which it or its properties

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are bound,
where, in the case of this clause (ii), such conflict, violation or default could have a
material adverse effect on Purchaser’s ability for perform its obligations hereunder.
Purchaser is not a party to or bound by any agreement or instrument or subject to any
charter or other corporate restrictions or judgment, order, writ, injunction, decree, law,
rule or regulation which may materially and adversely affect the ability of Purchaser to
perform its obligations under this Agreement.

     (d) No Defaults or Violations. Purchaser is not in default under any mortgage,
deed of trust, indenture or other instrument or agreement to which Purchaser is a party or
by which it or its properties are bound, or in violation of any law or regulation, which
default or violation could have a material adverse effect on Purchaser’s ability for perform
its obligations hereunder.

     (e) No Consents. No consent, approval or authorization of any government or
governmental body is required in connection with the execution, delivery and performance of
this Agreement, or the consummation of the transactions contemplated hereby.

     (f) No Litigation. There are no pending or threatened actions or proceedings
by or before any court, administrative agency or arbitrator, that could if adversely
determined, materially and adversely affect the ability of Purchaser to perform its
obligations hereunder, and there are no presently existing orders of any court,
administrative agency or arbitrator that could have a material and adverse affect on the
ability of Purchaser to perform its obligations hereunder.

     (g) Continuing Obligation of Purchaser. Purchaser agrees that during the term
of this Agreement, it will (i) remain in good standing and qualified to do business under
the laws of the state of its organization and any other jurisdictions in which it operates,
(ii) conduct its business in accordance with all applicable state and federal laws, and
(iii) continue to be qualified to carry out this Agreement.

     7.4 Representations Warranties and Covenants with Respect to Eligible Lender Trustees.
Seller and Purchaser hereby represent, covenant and warrant that if and to the extent
that they are acting via Eligible Lender Trustees, then each such Eligible Lender Trustee has
no personal liability for any representation, covenant, warranty or other obligation undertaken in
this Agreement and that such Eligible Lender Trustee acts only for the Seller or Purchaser (as
applicable) and that recourse (if any) may be had only against such Seller or Purchaser and not
against such Eligible Lender Trustee or its separate assets. Each Eligible Lender Trustee shall be
a third-party beneficiary of this Section 7.4.

ARTICLE VIII

MISCELLANEOUS

     8.1 Communications and Notices. Unless otherwise expressly provided herein, all
notices, requests, demands or other instruments which may or are required to be given by either
party to the other or to the Eligible Lender Trustee, shall be in writing, and each shall be deemed
to have been properly given when served personally on an officer of the party to whom such

11

 

notice
is to be given, or upon expiration of a period of 48 hours from and after the postmark thereof when
mailed postage prepaid by registered or certified mail, requesting return receipt, addressed as
follows:

	 	 	 	 	 	 	 
	 	 	If to Seller:
	 
	 	 	 	 	 	 
	

	 	 	 	 	 	Consolidation Loan Funding II, LLC
	

	 	 	 	 	 	c/o CLF II Management Corp., Manager
	

	 	 	 	 	 	Attn: Mr. Ryan D. Katz, President
	

	 	 	 	 	 	9477 Waples Street, Suite 100

	

	 	 	 	 	 	San Diego, CA 92121
	

	 	 	 	 	 	Facsimile: (858) 909-0284
	

	 	 	 	 	 	e-mail: rkatz@goalfinancial.net
	 
	 	 	 	 	 	 
	

	 	 	 	 	 	with a copy to Seller ELT
	 
	 	 	 	 	 	 
	 	 	If to Seller ELT:
	 
	 	 	 	 	 	 
	

	 	 	 	 	 	The Bank of New York Trust Co., N.A.,
	

	 	 	 	 	 	as Seller’s Eligible Lender Trustee
	

	 	 	 	 	 	Attn: Corporate Trust Manager
	

	 	 	 	 	 	10161 Centurion Parkway, 2nd Floor
	

	 	 	 	 	 	Jacksonville, Florida 32256
	

	 	 	 	 	 	Facsimile: (904) 645-1931
	

	 	 	 	 	 	e-mail: wcardozo@bankofny.com
	 
	 	 	 	 	 	 
	 	 	If to Purchaser:
	 
	 	 	 	 	 	 
	

	 	 	 	 	 	Higher Education Funding I
	

	 	 	 	 	 	c/o Goal Financial, LLC,
	

	 	 	 	 	 	   as Issuer Administrator
	

	 	 	 	 	 	Attention: Mr. Ryan D. Katz
	

	 	 	 	 	 	9477 Waples Street, Suite 100
	

	 	 	 	 	 	San Diego, CA 92121
	

	 	 	 	 	 	Facsimile: (858) 909-0284
	

	 	 	 	 	 	e-mail: rkatz@goalfinancial.net
	 
	 	 	 	 	 	 
	

	 	 	 	 	 	with a copy to Purchaser ELT

12

 

	 	 	 	 	 	 	 
	 	 	If to Purchaser ELT:
	 
	 	 	 	 	 	 
	

	 	 	 	 	 	The Bank of New York,
	

	 	 	 	 	 	as Purchaser’s Eligible Lender Trustee
	

	 	 	 	 	 	Attn: Corporate Trust Manager
	

	 	 	 	 	 	10161 Centurion Parkway, 2nd Floor
	

	 	 	 	 	 	Jacksonville, Florida 32256
	

	 	 	 	 	 	Facsimile: (904) 645-1931
	

	 	 	 	 	 	e-mail: wcardozo@bankofny.com
	 
	 	 	 	 	 	 
	 	 	If to Issuer Administrator:
	 
	 	 	 	 	 	 
	

	 	 	 	 	 	Goal Financial, LLC
	

	 	 	 	 	 	Attention: Mr. Ryan D. Katz
	

	 	 	 	 	 	9477 Waples Street, Suite 100
	

	 	 	 	 	 	San Diego, CA 92121
	

	 	 	 	 	 	Facsimile: (858) 909-0284
	

	 	 	 	 	 	e-mail: rkatz@goalfinancial.net

Any party may change the address and name of the addressee to which subsequent notices are to be
sent to it, by notice to the others given as aforesaid, but any such notice of change, if sent by
mail, shall not be effective until the 5th day after it is mailed.

     8.2 Forms of Instruments, Proceedings. All instruments relating to the sale and
purchase of the Student Loans pursuant to this Agreement, and all proceedings to be taken in
connection with this Agreement and the transactions contemplated herein, shall be in form and
substance mutually satisfactory to Seller and Purchaser and their respective counsel.

     8.3 Payment of Expenses. Each party to this Agreement shall pay its own expenses
incurred in connection with transactions herein contemplated.

     8.4 Non-Business Days. If the date for taking any action required hereunder is not a
Business Day, then such action can be taken, without interest or penalty, on the next succeeding
Business Day, with the same force and effect as if such action was taken on the required date.

     8.5 Amendments, Modifications and Waivers. The provisions of this Agreement cannot be
amended, waived or modified unless such amendment, waiver or modification be in writing and signed
by the parties hereto. Inaction or failure to demand strict performance shall not be deemed a
waiver.

     8.6 Severability. If any provision of this Agreement shall be held, or deemed to be
or shall, in fact, be inoperative or unenforceable as applied in any particular situation, such
circumstance shall not have the effect of rendering the provision in question inoperative or
unenforceable in any other situation or of rendering any other provision or provisions herein
contained invalid, inoperative or unenforceable to any extent whatsoever. The invalidity of any

13

 

one or more phrases, sentences, clauses or paragraphs herein contained shall not affect the
remaining portions of this Agreement or any part hereof.

     8.7 Remedies. Unless otherwise expressly provided herein, no remedy by the terms of
this Agreement conferred upon or reserved to Purchaser ELT or Purchaser is intended to be exclusive
of any other remedy, but each and every such remedy shall be cumulative and in addition to every
other remedy given under this Agreement or existing at law or in equity (including, without
limitation, the right to such equitable relief by way of injunction), or statute on or after the
date of this Agreement.

     8.8 Assignment. This Agreement may not be assigned or otherwise transferred, in whole
or in part, by one party without the prior written consent of the other parties, which consent
shall not unreasonably be withheld; provided, however, that this Agreement may be pledged and
assigned by Purchaser and Purchaser ELT without the prior written consent of the parties to the
extent necessary or appropriate to effect the provisions of the Indenture of Trust.

     8.9 Binding Effect. All covenants and agreements herein contained shall extend to and
be obligatory upon all successors of the respective parties hereto.

     8.10 Governing Law. This Agreement shall be construed in accordance with and governed
by the law of the State of New York.

     8.11 Arbitration. All disputes or differences between the parties which arise under
or are related to this Agreement shall be settled by arbitration in New York, New York in
accordance with the Commercial Arbitration Rules of the American Arbitration Association and
judgment upon the award entered by the arbitrators may be entered in any Court having jurisdiction
thereof. The panel of arbitrators, as contemplated in this Article, shall consist of three neutral
arbitrators. The arbitrators shall promptly enter an award which shall do justice between the
parties and the award shall be supported by written opinion. Each party to the arbitration shall
bear its respective costs of arbitration, with the fees and expenses of the arbitrators to be borne
equally by the parties.

     8.12 Entire Agreement. This Agreement embodies and constitutes the entire
understanding between the parties with respect to the transactions contemplated by this Agreement,
and all prior or contemporaneous agreements, understandings, representations and statements between
the parties, written or oral, are merged into and superseded by this Agreement.

     8.13 Counterparts. This Agreement may be simultaneously executed in several
counterparts, each of which shall be an original and all of which shall constitute but one and the
same instrument.

     8.14 Limited Role of the Delaware Trustee. It is expressly understood and agreed by
the parties hereto that this Loan Purchase Agreement is executed and delivered by Wilmington Trust
Company, not individually or personally but solely as Delaware Trustee of the Purchaser, in the
exercise of the powers and authority conferred and vested in it; (b) each of the representations,
undertakings and agreement herein made on the part of the Purchaser is made and intended not as
personal representations, undertakings and agreements by Wilmington Trust

14

 

Company but is made and
intended for the purpose of binding only the Purchaser; (c) nothing herein contained shall be
construed as creating any liability on Wilmington Trust Company, individually or personally, to
perform any covenant either expressed or implied contained herein, all such liability, if any,
being expressly waived by the parties hereto and by any person claiming by, through or under the
parties hereto; and (d) under no circumstances shall Wilmington Trust Company be personally liable
for the payment of any indebtedness or expenses of the Purchaser or be liable for the breach or
failure of any obligations, representation, warranty or covenant made or undertaken by the
Purchaser under this Agreement.

       8.15 True Sale.

     (a) All purchases hereunder shall be made without recourse except as provided in
Article V. Each party hereto intends that the transactions hereunder constitute the sales
of the Student Loans by Seller to Purchaser (and by Seller ELT to Purchaser ELT). No party
hereto intends the transactions contemplated hereby to be, or for any purpose to be
characterized as, a loan from Purchaser to Seller (or from Purchaser ELT to Seller ELT).

     (b) In the event (but only to the extent) that the conveyance of any Student Loan
hereunder is characterized by a court, governmental authority or regulatory body as a loan
rather than a sale, Seller shall be deemed to have granted to Purchaser (and Seller ELT
shall be deemed to have granted to Purchaser ELT), and Seller hereby grants to Purchaser
(and Seller ELT hereby grants to Purchaser ELT), a security interest in all of its right,
title and interest in, to and under such Student Loan. Each of Seller and Seller ELT
authorizes Purchaser and Purchaser ELT to file any and all Uniform Commercial Code financing
statements deemed necessary by Purchaser (or the Issuer Administrator) to perfect the
ownership interests described herein.

       8.16 Effect on Original Agreement As amended and restated hereby, the Original
Agreement is hereby ratified and confirmed in all respects.

15

 

     IN WITNESS WHEREOF, the parties hereto have caused this Loan Purchase Agreement to be duly
executed as of the day and year first above written.

	 	 	 	 	 	 	 
	 	 	CONSOLIDATION LOAN FUNDING II, LLC,
	 	 	as Seller
	 
	 	 	 	 	 	 
	 	 	By: CLF II MANAGEMENT CORP.,
	 	 	as Manager	 
	 
	 	 	 	 	 	 
	

	 	 	 	By:
	 	/s/ Ken Ruggiero
	

	 	 	 	 	 	 
	

	 	 	 	Name:
	 	Ken Ruggiero
	

	 	 	 	 	 	 
	

	 	 	 	Title:
	 	Chief Financial Officer
	

	 	 	 	 	 	 

 

	S-1	LOAN PURCHASE AGREEMENT

 

	 	 	 	 	 	 	 
	 	 	HIGHER EDUCATION FUNDING I,
	 	 	as Purchaser
	 
	 	 	 	 	 	 
	 	 	 	 	By: WILMINGTON TRUST COMPANY,
	 	 	 	 	not in its individual capacity but solely as
	 	 	 	 	Delaware Trustee
	 
	 	 	 	 	 	 
	

	 	 	 	By:
	 	/s/ Janel R. Havrilla
	

	 	 	 	 	 	 
	

	 	 	 	Name:
	 	Janel R. Havrilla
	

	 	 	 	 	 	 
	

	 	 	 	Title:
	 	 Financial Services Officer
	

	 	 	 	 	 	 

 

	S-2	LOAN PURCHASE AGREEMENT

 

	 	 	 	 	 	 	 
	 	 	THE BANK OF NEW YORK TRUST
	 	 	 	 	COMPANY, N.A.,
	 	 	 	 	not in its individual capacity but as

	 	 	 	 	Eligible Lender Trustee for Seller
	 
	 	 	 	 	 	 
	

	 	 	 	By:
	 	/s/ William Cardozo
	

	 	 	 	 	 	 
	

	 	 	 	Name:
	 	William Cardozo
	

	 	 	 	 	 	 
	

	 	 	 	Title:
	 	 Vice President
	

	 	 	 	 	 	 

 

	S-3	LOAN PURCHASE AGREEMENT

 

	 	 	 	 	 	 	 
	 	 	THE BANK OF NEW YORK,
	 	 	 	 	not in its individual capacity but as
	 	 	 	 	Eligible Lender Trustee for Purchaser
	 
	 	 	 	 	 	 
	

	 	 	 	By:
	 	/s/ William Cardozo
	

	 	 	 	 	 	 
	

	 	 	 	Name:
	 	William Cardozo
	

	 	 	 	 	 	 
	

	 	 	 	Title:
	 	Agent
	

	 	 	 	 	 	 

 

	S-4	LOAN PURCHASE AGREEMENT

 

EXHIBIT A TO LOAN PURCHASE AGREEMENT

LOAN TRANSFER ADDENDUM

     This Loan Transfer Addendum (“Addendum”) is made and entered into as of the ___day of___,
___by and among Consolidation Loan Funding II, LLC (the “Seller”), Higher Education
Funding I (the “Purchaser”), The Bank of New York Trust Company, N.A., not in its individual
capacity but as eligible lender trustee for Seller (in such capacity, the “Seller ELT”), and The
Bank of New York, not in its individual capacity but as eligible lender trustee for Purchaser (in
such capacity, the “Purchaser ELT”).

     WHEREAS, the parties hereto entered into that certain Amended and Restated Loan Purchase
Agreement, dated as of March 1, 2005 (as the same may be amended or otherwise modified from time to
time, the “Loan Purchase Agreement”), and the Seller wishes to sell a portfolio of Student Loans to
the Purchaser, pursuant to and in accordance with the terms and conditions of the Loan Purchase
Agreement.

     NOW, THEREFORE, in consideration of the foregoing premises and the mutual covenants herein
contained, the parties hereto agree as follows:

     1. Definitions. All capitalized terms in this Addendum shall have the same meanings given to
them in the Loan Purchase Agreement, unless otherwise specifically stated herein.

     2. Purchase of Student Loans. Subject to the terms and conditions of the Loan Purchase
Agreement and in reliance upon the representations, warranties and covenants as set forth in the
Loan Purchase Agreement, the Seller (and, with respect to legal title thereto, Seller ELT on behalf
of Seller) agrees to sell to the Purchaser (and, with respect to legal title thereto, to Purchaser
ELT on behalf of Purchaser), a portfolio of Student Loans identified in the Loan Transfer Schedule
attached hereto, having an aggregate outstanding Principal Balance of approximately ___(the
“Current Purchase Portfolio”).

     3. Purchase Price. Subject to the terms and conditions of the Loan Purchase Agreement,
Purchaser (and, with respect to legal title thereto, Purchaser ELT on behalf of Purchaser) agrees
to purchase the Student Loans in the Current Purchase Portfolio at a purchase price equal to
[___] of the aggregate unpaid Principal Balance thereon plus (without duplication) 100%
of the accrued and unpaid interest thereon (including Interest Subsidy Payments and Special
Allowance Payments), each as of the Scheduled Sale Date.

     4. Scheduled Sale Date. The Scheduled Sale Date applicable to the Current Purchase Portfolio
shall be no later than ___, ___.

     5. Non-Consolidation Loans. Student Loans which are not Consolidation Loans [check one]

A-1

 

     are___

     are not ___

included in the Portfolio of Eligible Loans.

     6. Servicer. The Servicer of the Eligible Loans is ___

     7. Guarantors. The Guarantor of the Eligible Loans is ___

     8. Representations and Warranties. The Seller hereby confirms all the representations and
warranties set forth in the Loan Purchase Agreement with respect to the Current Purchase Portfolio
as of the Scheduled Sale Date set forth in Article VII of the Loan Purchase Agreement.

     9. Effect on Loan Purchase Agreement. This Addendum sets forth the terms of purchase and sale
solely with respect to the Current Purchase Portfolio. This Addendum shall have no effect upon any
other sale or purchase of any Student Loans consummated or contemplated prior to or after the
Scheduled Sale Date, and all other terms, conditions and agreements contained in the Loan Purchase
Agreement shall remain in full force and effect. Prior or subsequent purchases and sales of Student
Loans shall each be governed by a separate Loan Transfer Addendum.

	 	 	 	 	 	 	 	 	 
	 	 	CONSOLIDATION LOAN FUNDING II, LLC,
	 	 	as Seller
	 
	 	 	 	 	 	 	 	 
	 	 	 	 	By:	 	CLF II MANAGEMENT CORP.,
	 	 	 	 	 	 	as Manager
	 
	

	 	 	 	 	 	By:	 	 
	

	 	 	 	 	 	 	 	 
	

	 	 	 	 	 	Name:	 	 
	

	 	 	 	 	 	 	 	 
	

	 	 	 	 	 	Title:	 	 
	

	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 
	 	 	HIGHER EDUCATION FUNDING I,

	 	 	as Purchaser
	 
	 	 	 	 	 	 	 	 
	 	 	By:	 	GOAL FINANCIAL, LLC,
	 	 	 	 	as Issuer Administrator
	 
	 	 	 	 	 	 	 	 
	

	 	 	 	 	 	By:	 	 
	

	 	 	 	 	 	 	 	 
	

	 	 	 	 	 	Name:	 	 
	

	 	 	 	 	 	 	 	 
	

	 	 	 	 	 	Title:	 	 
	

	 	 	 	 	 	 	 	 

A-2

 

	 	 	 	 	 	 	 
	 	 	THE BANK OF NEW YORK TRUST
	 	 	COMPANY, N.A.,
	 	 	 	 	not in its individual capacity but as Eligible
	 	 	 	 	Lender Trustee for Seller
	 
	 	 	 	 	 	 
	

	 	By:	 	 	 	 
	

	 	 	 	 	 	 
	

	 	Name:	 	 	 	 
	

	 	 	 	 	 	 
	

	 	Title:	 	 	 	 
	

	 	 	 	 	 	 
	 
	 	 	 	 	 	 
	 	 	THE BANK OF NEW YORK,
	 	 	 	 	not in its individual capacity but as Eligible
	 	 	 	 	Lender Trustee for Purchaser
	 
	 	 	 	 	 	 
	

	 	By:	 	 	 	 
	

	 	 	 	 	 	 
	

	 	Name:	 	 	 	 
	

	 	 	 	 	 	 
	

	 	Title:	 	 	 	 
	

	 	 	 	 	 	 

A-3

 

LOAN TRANSFER SCHEDULE

	 	 	 
	Loan Number / Identification

	 	Principal Balance

A-4

 

EXHIBIT B TO LOAN PURCHASE AGREEMENT

SELLER’S CLOSING CERTIFICATE

     Consolidation Loan Funding II, LLC (the “Seller”) does hereby certify that all
representations, warranties and statements by or on behalf of the Seller contained in a certain
Amended and Restated Loan Purchase Agreement, dated as of March 1, 2005 (as the same may be amended
or otherwise modified from time to time, the “Loan Purchase Agreement”), among the Seller, Higher
Education Funding I, a Delaware statutory trust, as purchaser (“Purchaser”), The Bank of New York
Trust Company, N.A., not in its individual capacity but as eligible lender trustee for Seller (in
such capacity, the “Seller ELT”), and The Bank of New York, not in its individual capacity but as
eligible lender trustee for Purchaser (in such capacity, the “Purchaser ELT”), are true and correct
on and as of the Scheduled Sale Date hereunder written, without exception or qualification
whatsoever;

     FURTHERMORE, the Seller does hereby certify that the following documents, where applicable to
each Student Loan (as defined in the Loan Purchase Agreement) acquired under the Loan Purchase
Agreement, have heretofore been furnished to the Purchaser or are simultaneously herewith delivered
in accordance with the instructions of the Purchaser, pursuant to Section 4.3 of the Loan Purchase
Agreement:

     The Department of Education application or Guarantee Agency application, as supplemented

     Interim note(s) for each Student Loan

     Payout note(s) for each Student Loan

     Disclosure and Student Loan information statement

     Certificate of Insurance and Contract of Insurance with respect to each Insured Student Loan
(or certified copy thereof)

     Guarantee Agreement, Agreement for Participation in the Guaranteed Loan Program and
Notification of Loan Approval by the Guarantee Agency with respect to each Guaranteed Student Loan
(or certified copy thereof)

     Any other documentation held by the Seller relating to the history of such Student Loan

     Secretary or Guarantee Agency Loan Transfer Statements, if any

     Uniform Commercial Code financing statement, if any, securing any interest in a Student Loan
to be Financed, and an executed termination statement related thereto

     Evidence of Student Loan disbursement

B-1

 

     Any other document required to be submitted with a claim to the Guarantee Agency.

     IN WITNESS WHEREOF, the undersigned has caused this Certificate to be executed and delivered
by an officer hereunto duly authorized as of the following Scheduled
Sale Date: ____________ ___, ___.

	 	 	 	 	 	 	 	 	 
	 	 	CONSOLIDATION LOAN FUNDING II, LLC,
	 	 	as Seller
	 	 	 	 	By:	 	  CLF II MANAGEMENT CORP.,
	 	 	 	 	 	 	  as Manager
	 
	 	 	 	 	 	 	 	 
	

	 	 	 	 	 	By:	 	 
	

	 	 	 	 	 	 	 	 
	

	 	 	 	 	 	Name:	 	 
	

	 	 	 	 	 	 	 	 
	

	 	 	 	 	 	Title:	 	 
	

	 	 	 	 	 	 	 	 

B-2

 

EXHIBIT C TO LOAN PURCHASE AGREEMENT

BLANKET ENDORSEMENT OF

STUDENT LOAN PROMISSORY NOTES

     Pursuant to the Amended and Restated Loan Purchase Agreement, dated as of March 1, 2005 (as
the same may be amended or otherwise modified from time to time, the “Loan Purchase Agreement”),
among Consolidation Loan Funding II, LLC, as seller (“Seller”), Higher Education Funding I, a
Delaware statutory trust, as purchaser (“Purchaser”), The Bank of New York Trust Company, N.A., not
in its individual capacity but as eligible lender trustee for Seller (in such capacity, the “Seller
ELT”), and The Bank of New York, not in its individual capacity but as eligible lender trustee for
Purchaser (in such capacity, the “Purchaser ELT”), the Seller (and, with respect to legal title
thereto, Seller ELT on behalf of the Seller) by execution of this instrument, hereby endorses all
promissory notes purchased by the Purchaser (and, with respect to legal title thereto, Purchaser
ELT on behalf of the Purchaser). This endorsement is in blank, unrestricted form. This
endorsement is without recourse, except as provided under the terms of the Loan Purchase Agreement.
All right, title, and interest of Seller (and, with respect to legal title thereto, Seller ELT on
behalf of the Seller) in and to the promissory notes and related documentation identified in the
attached loan ledger are transferred and assigned to the Purchaser (and, with respect to legal
title thereto, Purchaser ELT on behalf of the Purchaser).

     This endorsement may be further manifested by attaching this instrument or a facsimile hereof
to each or any of the Promissory Notes and Master Notes (or copies thereof) and related
documentation acquired by the Purchaser (and, with respect to legal title thereto, Purchaser ELT on
behalf of the Purchaser) from Seller (and, with respect to legal title thereto, Seller ELT on
behalf of the Seller), or by attaching this instrument to the loan ledger schedule, as the
Purchaser may require or deem necessary.

     Dated this __day of_________ ____

	 	 	 	 	 	 	 
	 	 	CONSOLIDATION LOAN FUNDING II, LLC,
	 	 	as Seller
	 	 	By: CLF II MANAGEMENT CORP.,
	 	 	 	 	  as
Manager

	

	 	 	 	By	 	 
	

	 	 	 	 	 	 
	

	 	 	 	Name:	 	 
	

	 	 	 	 	 	 
	

	 	 	 	Title:	 	 
	

	 	 	 	 	 	 

C-1

 

	 	 	 	 	 	 	 	 	 
	 	 	THE BANK OF NEW YORK TRUST
	 	 	COMPANY, N.A.,	 	 
	 	 	 	 	not in its individual
capacity but as Eligible Lender Trustee for Seller
	 	 	 	 	 
	

	 	By:	 	 	 	 	 	 
	

	 	 	 	 	 	 	 	 
	

	 	Name:	 	 	 	 	 	 
	

	 	 	 	 	 	 	 	 
	

	 	Title:	 	 	 	 	 	 
	

	 	 	 	 	 	 	 	 

C-2

 

EXHIBIT D TO LOAN PURCHASE AGREEMENT

BILL OF SALE

     FOR VALUE RECEIVED, Consolidation Loan Funding II, LLC (the “Seller”) (and with respect to
legal title thereto, Seller ELT on behalf of Seller), pursuant to the terms and conditions of that
certain Amended and Restated Loan Purchase Agreement, dated as of March 1, 2005 (as the same may be
amended or otherwise modified from time to time, the “Loan Purchase Agreement”), among the Seller,
Higher Education Funding I, a Delaware statutory trust, as purchaser (“Purchaser”), The Bank of New
York Trust Company, N.A., not in its individual capacity but as eligible lender trustee for Seller
(in such capacity, “Seller ELT”), and The Bank of New York, not in its individual capacity but as
eligible lender trustee for Purchaser (in such capacity, “Purchaser ELT”), does hereby grant, sell,
assign, transfer and convey to Purchaser (and, with respect to legal title thereto, Purchaser ELT
on behalf of Purchaser), and its successors and assigns, all right, title and interest of the
Seller (and with respect to legal title thereto, the Seller ELT) in and to the following:

     (1) The loans described in Annex I attached hereto (the “Student Loans”), including
the Guarantee, if any, of the Student Loans issued by a Guarantor and the Certificate of
Insurance for Student Loans insured by the Secretary of Education;

     (2) All promissory notes and Master Notes (or copies thereof) and related
documentation evidencing the indebtedness represented by such Student Loans; and

     (3) All proceeds of the foregoing including, without limitation, all payments made by
the obligor thereunder or with respect thereto, all guarantee payments made by any guarantee
agency with respect thereto, if any, and all interest benefit payments and special allowance
payments with respect thereto made under Title IV, Part B, of the Higher Education
Act of 1965, as amended, and all rights to receive such payments, but excluding any proceeds
of the sale made hereby.

     TO HAVE AND TO HOLD the same unto the Purchaser (and, with respect to legal title
thereto, Purchaser ELT on behalf of Purchaser), its successors and assigns, forever. This
Bill of Sale is made pursuant to and is subject to the terms and provisions of the Loan
Purchase Agreement, and is without recourse, except as provided in the Loan Purchase
Agreement.

1

 

 

     IN
WITNESS WHEREOF, this instrument has been duly executed as of the
___ day of _________
 ___

	 	 	 	 	 	 	 
	 	 	CONSOLIDATION LOAN
FUNDING II, LLC,
Seller
	 	 	 	By:	  CLF II MANAGEMENT CORP.,
	 	 	 	 	  as Manager
	 
	 	 	 	 	 	 
	

	 	 	 	By:	 	 
	

	 	 	 	 	 	 
	

	 	 	 	Name:	 	 
	

	 	 	 	 	 	 
	

	 	 	 	Title:	 	 
	

	 	 	 	 	 	 

2

 

	 	 	 	 	 
	 	 	THE BANK OF NEW YORK TRUST
	 	 	 	 	COMPANY, N.A.,
	 	 	 	 	not in its individual capacity but as

	 	 	 	 	Eligible Lender Trustee
for Seller

	

	 	By:	 	 
	

	 	 	 	 
	 	 	Name:	 	 
	 
	 	 	 	 
	 	 	Title:
	

	 	 	 	 

3<PAGE>

                                                                   EXHIBIT 10.11

                     AGREEMENT FOR THE PURCHASE AND SALE OF
                      REAL PROPERTY DATED DECEMBER 1, 2004

                           AGREEMENT FOR THE PURCHASE
                            AND SALE OF REAL PROPERTY
                            WITH BUILDING STRUCTURES

This agreement for the purchase and sale of real property is made and entered
into this 1st day of December 2004, by and between Talon-Durango, LLC
(hereinafter referred to as "Seller") and Valley Bancorp, or Assignee
(hereinafter referred to as "Purchaser" or "Buyer"), with reference to the
following facts.

THE PROPERTY

A.    Seller is the owner of property consisting of approximately 4.59 +/- gross
      acres as shown on Talon Professional Commercial Subdivision map, book 14,
      page 0079 dated 1-14-04. Included in the 4.59 acres is Lot 1-1 containing
      11,955 square feet as shown on the Record of Survey dated 1-14-04, book
      135, page 0025.

B.    Seller now desires to sell to Purchaser and Purchaser desires to purchase
      from Seller Lot 1-1 including approximately 9,968 square feet, a 2-story
      building of the hereinabove described property and as outlined on Exhibit
      A, attached hereto ("Talon Office Park, the Property").

C.    Property contains existing or to be built structures as Building "B",
      9,968 square feet, together with certain rights to common area amenities,
      including but not limited to the right to use six (6) covered parking
      spaces in proximate location to Building "B". See Exhibit B for full
      description of tenant improvement allowance.

Now therefore, in consideration of the mutual covenants, premises and agreements
contained herein, the parties do hereby agree as follows:

   1. Purchase and Sale

Seller shall sell to the Purchaser and Purchaser shall purchase from Seller upon
the terms and conditions set forth, "the Property".

   2. Purchase Price

The purchase price to be paid for the Property with building shall be One
Million Eight Hundred Thousand Dollars ($1,800,000.00).

   3. Earnest Money Deposit

The earnest money deposit shall be evidenced by a Cashier's Check in the amount
of ONE HUNDRED THOUSAND DOLLARS AND 00/100. Earnest money to be deposited within
two (2) business days after opening escrow with Chicago Title. This earnest
money deposit shall be placed in an interest bearing account (if available) by
the escrow holder to accrue for the Purchaser's benefit.

   4. Balance of Money

An additional cash deposit (second deposit) in the amount of $1,700,000.00 shall
be deposited at the close of escrow. Close of escrow shall occur on or before
January 20, 2005 or building shell final inspection.

                                       1

<PAGE>

Buyer shall assume full responsibility for designing, permitting, and
building-out all of its own Tenant Improvements, save and except those items
listed under "Lobby Construction Included in Shell Price" and "Exterior Finishes
Included Shell Price", within Exhibit "B" attached to and made a part of this
agreement.

   5. Purchaser Financing

N/A. This is to be an all cash transaction.

   6. Additional Terms and Conditions

Purchaser is purchasing this property with the understanding that:

   a. The subject property consists of one (1) finished pad and building
      totaling approximately 9,968 square feet; The property has a property
      description and a Recorded Survey of Record.

   b. The existing zoning is PR - Professional Office

   c. Purchaser requests a due-diligence period of fifteen (15) days during
      which time all earnest money will be refundable to Purchaser, expiring on
      12/22/04.

   d. Neither party is represented by a real estate broker and has no claim to
      any commissions.

   e. This offer is subject to the approval and acceptance of the Executive
      Committee of the Board of Directors of the Buyer, which must be obtained
      prior to the finalization hereof. Buyer agrees to obtain the determination
      of its Executive Committee as to this agreement on or before December 10,
      2004, and to communicate such determination to Seller immediately
      thereafter.

   7. Title to the Property

Title to the Property shall be conveyed to the Purchaser, free and clear of
covenants, conditions, restrictions, rights of way, easements, liens or
encumbrances of any kind or nature whatsoever affecting the title or use of the
property except:

   a. Real property taxes which are a lien not yet payable;

   b. Such other matters affecting the title to or the use of the property,
      which are approved, in writing, within fifteen (15) days from the opening
      of escrow and after Purchaser's receipt of the preliminary title (and
      survey if Purchaser elects to obtain extended coverage title insurance as
      herein provided), and copies of all documents affecting the title to or
      use of the property. The Purchaser in writing within said time period must
      disapprove such other matters, or they shall be deemed to have approved.

      Seller shall provide Purchaser with a CLTA Standard Form Policy of Title
      Insurance issued by Chicago Title, with liability in the amount of the
      total purchase price insuring title to the real property vested in
      Purchaser, with title in the condition approved by Purchaser as herein
      provided. The cost of such policy of title insurance shall be borne by the
      Seller. If purchaser requests, Seller shall furnish an ALTA Extended
      Coverage Form Title Insurance Policy, but, if Purchaser so requests, the
      cost of the extended coverage survey and the additional cost of such title
      insurance over and above the cost of ALTA Standard Form Title Insurance
      will be borne by the Purchaser.

   c. Recorded CC&R's and easements.

   8. Escrow

The purchase and sale provided for herein shall be consummated through an escrow
to be opened at Chicago Title within two (2) business days after the execution
and delivery of this agreement. Both Purchaser and Seller shall

                                       2

<PAGE>
 deem the escrow open when both Buyer and Seller are in possession of a signed
Purchase Agreement. Said escrow shall be upon the usual form of instructions of
the escrow holder for transactions of the type provided for herein, except that
said instructions shall incorporate all of the terms and provisions of this
agreement, and in addition shall provide the following:

   a. Promptly after the opening of escrow, Seller shall cause to be procured
      and delivered to Purchaser, for Purchaser's approval, the Preliminary
      Title Report and copies of documents referred to in Paragraphs 7 and 8;

   b. Seller shall pay for any Documentary Transfer Tax, and all fees and costs
      shall be divided in accordance with the usual practices of the escrow
      holder and customary in the State of Nevada;

   c. Real property taxes shall be prorated as of the Closing date;

   d. In the event of any conflict between the terms of this agreement and the
      terms of the escrow, the terms of this agreement shall prevail except
      where the escrow instructions specifically provide otherwise.

If escrow fails to close as a result of Purchaser's default, all monies
previously deposited by Purchaser into escrow shall be paid to Seller as
liquidated damages. If escrow fails to close as a result of Seller's default,
Purchaser shall be entitled to seek specific performance remedies. The
provisions of this paragraph shall be the sole remedies available to each
respective party hereunder in the event of the default under this Agreement.

   9. Purchaser's Contingencies

The purchase of this Property shall be contingent upon the Purchaser's written
approval of the following, in addition to conditions and/or contingencies listed
elsewhere herein:

   a. The Purchaser's approval of the Preliminary Title Report, and all
      documents described within the Preliminary Title Report, issued by Chicago
      Title concerning the property.

   b. Purchaser shall have the right, at Purchaser's expense, to select a
      licensed, qualified professional(s), to make "inspections" including
      tests, surveys, other studies, inspections and investigations of the
      subject property, including but not limited to all surveys and engineering
      as to soils conditions, sewer, water, electric, phone, gas and cable
      accessibility, flood plain studies, height restrictions, airport noise,
      pollution studies and arterial location studies, hydrology reports,
      tortoise migration reports, other environmental hazards such as below
      ground gas tanks and other substances, products and geological conditions,
      access to the property and financing.

The above contingencies in Paragraph 9(a) and (b) are solely for the Purchaser's
benefit. Each of the above listed contingencies must be approved or disapproved,
in writing, by the Purchaser on or before fifteen (15) days from the receipt of
said documents, or access is given to the property, whichever comes later.
Should Purchaser not approve, for any reason whatsoever, the above
contingencies, the Purchaser shall have the right to terminate this Agreement
and cancel escrow. In the event the Purchaser terminates this agreement due to
Purchaser's disapproval of any of the above items, any deposits made by
Purchaser shall be immediately returned to Purchaser less any escrow costs
incurred and Purchaser shall have no further obligations under this agreement
and/or liability to the Seller. Purchaser shall be solely responsible for all
costs involved in satisfying the above stated contingencies. In the event the
Purchaser approves said contingencies, the earnest money deposit shall apply
toward the purchase price at close of escrow.

   10. Planning and Zoning Application

Seller further warrants that said property is zoned. Zoning is described as PR -
Professional Office.

                                       3

<PAGE>

   11. Flood Zones

Purchaser is aware that the property may or may not lie within a special flood
hazard area and acknowledges that the parcel may be located in an area
designated by the Department of Housing and Urban Development (HUD) as a special
flood hazard area as delineated on the National Flood Insurance Map and, in the
event a loan is required by a financial institution, flood insurance may be
required for the term of the loan.

   12. Supplemental Tax Assessments

Any supplemental tax assessment levied after close of, in this tax year will be
prorated and Seller agrees to pay Purchaser his prorata share of said
assessment.

   13. Notices

Any and all notices, demands, or other communications required or desired to be
given hereunder by any party shall be in writing and shall be validly given or
made to another party if served either personally or if deposited in the United
States mail. If such notice, demand or other communication is serviced
personally, service shall be conclusively deemed made at time of such personal
service. If such notice, demand or other communication be given by mail, such
shall be conclusively deemed given forty-eight (48) hours after the deposit
thereof in the United States mail addressed to the party to whom such notice,
demand or other communication is to be given as herein set forth.

To Seller: To be provided in escrow

To Purchaser: To be provided in escrow.

Any party hereto may change its address for the purpose of receiving notices,
demands and other communications as herein provided by written notice in the
manner aforesaid to the other party or parties hereto. After opening of escrow
of all notices, demands and other communications shall be given to the escrow
holder.

   14. Applicable Law and Severability

This document shall, in all respects, be governed by the laws of the State of
Nevada applicable to agreements executed and to be wholly performed within the
State of Nevada. Nothing contained herein shall be construed so as to require
the commission of any act contrary to law, and wherever there is any provision
contained herein and any present or future statue, law, or regulation contrary
to which the parties have no legal right to contract, the latter shall prevail
but the provision of this document which is affected shall be curtailed and
limited only to the extent necessary to bring it within the requirements of the
law.

   15. Further Assurances

Each of the parties hereto shall execute and deliver any and all additional
papers, documents, and other assurances, and shall do any and all acts and
things reasonably necessary in connection with the performance or their
obligations hereunder and to carry out the intent of the parties hereto.

   16. Tax Deferred Exchange

In the event that the Seller wishes to enter into a tax deferred exchange for
the real property described herein, of if the Purchaser wishes to enter into a
tax deferred exchange with respect to property owned by Seller in connection
with this transaction, each of the parties agrees to cooperate with the other
party in connection with such exchange including the execution of such documents
as may be reasonably necessary to effectuate the same. Provided that: (a) The
other party shall not be obligated to delay the closing, (b) All additional
costs in connection with the exchange should be borne by the party requesting
the exchange, and (c) The other party shall not be obligated to execute any
note, contract, deed or other document providing for any personal liability
which would survive the exchange, nor shall the other party be obligated to take
title to any property other than the property described in this agreement. The
other party shall be indemnified and held harmless against any liability, which
arises or is claimed to have arisen on account of the acquisition of the
exchange property.

                                       4

<PAGE>

   17. Purchaser and Seller Warranty

Purchaser and Seller warrant to Brokers and to each other that they have not
dealt with any real estate broker(s) in connection with this sale and that no
broker is entitled to any commission on account of this contract.

   18. Seller Representation and Warranties

            a. Seller is the owner of the property and/or has the full
               right/power and authority to sell, convey, and transfer the
               property to the Purchaser as provided herein, and to perform
               Seller's obligations hereunder.

            b. Seller has no knowledge, except as otherwise disclosed to
               Purchaser in writing, of the existence or prior existence on the
               property of any Hazardous Substances nor the existence of below
               ground storage tanks having leakage or other related problems.

            c. Seller has no knowledge of any aspect of condition of the
               property, which violates applicable laws, rules, regulations,
               codes or covenants, conditions or restrictions, or of
               improvements or alterations made without a permit where one was
               required.

            d. Seller has no knowledge of any actions, suits or proceedings
               pending or threatened before any commission, board, bureau,
               agency instrumentality, arbitrator(s), court or tribunal that
               would affect the property or the right to occupy or utilize same.

   19. Attorney's Fee

In the event any action is instituted by a party hereto to enforce any of the
terms and provisions contained herein, the prevailing party in such action shall
be entitled to such reasonable attorney's fee, costs and expenses as may be
fixed by the Court.

   20. Modifications or Amendments

No amendment, change or modification of this document shall be valid unless in
writing and signed by all parties hereto and provided to escrow holder.

   21. Successors or Assigns

All of the terms and provisions contained herein shall inure to the benefit of
and shall be binding upon the parties hereto and their respective heirs,
personal representatives, successors and assigns.

   22. Purchaser has received a full copy of the Covenants, Conditions and
       Restrictions (CC&R's) relating to the "Property". Purchaser will have
       five (5) days following opening of escrow, or 120 hours to review said
       document and note any discrepancies in writing to Seller.

Purchaser agrees to pay to the Association fifteen cents (.15) per square foot
or agreed upon fees for common area maintenance (C.A.M.) as outlined in the
CC&R's and By-Laws.

   23. Entire Agreement

This document, together with Exhibits "A" and "B" hereto constitutes the entire
understanding and agreement of the parties and any and all prior oral or written
agreements, understandings or representations are hereby terminated and canceled
in their entirety and are no further force or effect.

                                       5

<PAGE>

IN WITNESS WHEREOF the parties hereto have executed this Agreement as of the day
and year first stated below.

In the event that this offer is not accepted by the Seller on or before December
8, 2004, at 2:00 PM Pacific Standard Time, then this Contract shall become
immediately null and void and all parties shall have no further obligations
regarding said purchase.

Buyer:  Valley Bancorp or Assignee

By: _____________________________
    Steve Gilbert

Its: Executive Vice President and C.C.O.

SELLER ACCEPTANCE: Talon-Durango, LLC

By: _____________________________

Its: _______________________________

                                       6
<PAGE>

                                   EXHIBIT "A"
                                TALON OFFICE PARK
                                ~PROJECT SUMMARY~

The Talon Office Complex is a proposed 70,000 square feet professional park. Six
of the eight pads are dedicated to professional/medical offices with one pad
zoned for commercial/retail and one pad designated as a restaurant pad.

The Talon Office Complex will be built in several phases.

The property was purchased with the architecturals for an A & B style office
building. The civil drawings, traffic report, hydrology and soils report have
been updated through our process.

We have filed a commercial subdivision map on the project so that all eight
buildings can be sold to individual owners. Bramble Development Group, Inc.
and/or an associated LLC will maintain control of the common areas. A commercial
association will be formed in which all buildings pay a set fee for the "cam"
(common area maintenance).

When all buildings are complete, Bramble Marketing Group, LLC will manage the
common areas and ensure that it is maintained and kept to the highest standards.

The schedule on these buildings will be to begin construction as soon as we have
the pads graded and live fire hydrants, which is expected to be around December
2003 with occupancy by the second quarter of 2004.

It is Bramble's intent to add two to three of these buildings to their portfolio
of commercial buildings. Bramble will be onsite not only managing the common
areas but the buildings on a daily basis to ensure an A+ office complex.

We would invite you to purchase a building and get involved in the prestigious
Talon Professional Office Park.

                                       7

<PAGE>

                                TALON OFFICE PARK
                              ~PROJECT DESCRIPTION~

Details of Application Request

Site Area:                          4.45 acres
Building Area Total:                69,600 square feet
Number of Buildings:                8
Building Height:           25 feet (2 stories) 15 feet (1 story)
Total Parking Required:    232 spaces (including 7 handicap accessible)
Total Parking Provided:    313 spaces (including 11 handicap accessible)
Loading Required:                   4 spaces
Loading Provided:                   0 spaces

Zoning and Land Use of Adjacent Properties

North:  R-E (Residence Estates) under    Skipco
        ROI to C-1 (Limited Commercial)

South:  Clark County                     Existing Single Family Residential

East:   U (Undeveloped [L(Low)           Existing Single Family Residential
        General Plan Designation]

West:   R-E (Residence Estates) under
        ROI to C-1 (Limited Commercial)  Developed Commercial

Analysis and Findings

Site Plan:

Staff finds the proposed site plan includes approximately 313 parking spaces,
approximately 35% more than the 232 spaces required by title 19A for 69,600
square feet of non-medical office space. As much as 50% of the proposed office
space could be utilized as medical office given the parking proposed. However,
staff finds that four loading spaces and additional landscape `fingers' for each
six parking spaces are required for Code compliance, and two additional trash
enclosures are recommended site plan conditions. Therefore, at least 20 of the
81 surplus spaces shown on the current site plan will be displaced. In addition,
pedestrian walkways should be provided for connection between building pads A
and B and E, F, G and H, and between the street sidewalk and pads D and C.

                                       8

<PAGE>

                              [MAPS NOT INCLUDED]

                               TALON OFFICE PARK
                                 ~PRICE SHEET~

<TABLE>
<CAPTION>
 Unit I
 Building     Square Footage    Price/Sq. Foot  Zoned      Price
----------  ------------------  --------------  -----  -------------
<S>         <C>                 <C>             <C>    <C>
Building A  8,252 square feet    $206/Sq. Ft.    PR    $1,699,000.00
Building B  9,900 square feet    $202/Sq. Ft.    PR    $1,999,000.00
Building C  11,000 square feet   $227/Sq. Ft.    C-1   $2,499,000.00
Building D  5,500 square feet    $254/Sq. Ft.    C-1   $1,399,000.00
</TABLE>

Unit 2

Buildings E, F, G & H = To be determined

Price Includes the Following:

1.    $20.00 sq. ft. Tenant Improvement

2.    Finished lobby area with elevator and (4) restrooms

3.    (4) covered parking spaces

4.    3% broker fee

5.    (4) 2'x7' sign boxes on buildings

6.    18"x36" space on monument sign at entry = $5,000/space

Each building will pay a monthly C.A.M. fee of .15 cents per square foot for a
total building footage.

Expenses will be divided as follows:

<TABLE>
<CAPTION>
Common Area Expense (C.A.M.)                     Building Expense
-----------------------------           -----------------------------------
<S>                                     <C>
Sewer & Water                           Interior Lobby
Trash/Trash Enclosure                   Exterior Building Security Lighting
Parking Lot Lighting                    Interior Liability Insurance
Landscaping                             Fire and Casualty Insurance
Monument Signage                        Exterior Building Maintenance
Parking Areas/Sidewalk Upkeep           (Includes paint and roofing)
Assigned Covered Parking
</TABLE>

                                       9

<PAGE>

                                   EXHIBIT "B"
                        TO THE AGREEMENT FOR THE PURCHASE
               AND SALE OF REAL PROPERTY WITH BUILDING STRUCTURES

Tenant Improvement Breakdown

Not included in the price of the shell is a $20.00 per square foot allowance or
$199,360.00 minus tenant improvements constructed to date. (N.I.C., allowance
deducted)

The "yellow" highlighted area as indicated on the Building B floor plans will
include the following and are included in the price of the shell:

Lobby Construct/on Included in Shell Price

      1.    Drywall & Paint

      2.    Stairwell & Elevator

      3.    Building Directory and Fire Extinguishers

      4.    (4) Restrooms (complete)

      5.    Floor Coverings

      6.    Lobby Lighting and Lobby HVAC

Exterior Finishes Included Shell Price

      1.    Exterior Building Paint and Ceramic Tile

      2.    All Glazing and Store Front Doors

      3.    Exterior Ceramic Tile Border/Band

      4.    Exterior Lighting and Fixtures

      5.    Sidewalks and Paving

      6.    Landscaping

      7.    Covered Parking

      8.    Monument Sign & (4) Building Signs

                                       10

<PAGE>

                              ASSIGNEE INSTRUCTIONS

December 16, 2004

ESCROW NUMBER: 04161218-086-JR

Escrow Agent is hereby instructed and directed that the Assignee(s) in the above
referenced escrow is/are to be Assignee(s) Name(s) and you are hereby instructed
to treat said assignee(s) in all respects as though they were the original
purchaser(s) to said escrow.

The undersigned Assignor(s) by signature(s) below, hereby relinquish all of
their right, title and interest in and to the subject escrow and the property to
which it pertains, and assign all such rights to the herein named Assignees.
Further, all funds heretofore deposited by Assignor(s) are hereby
unconditionally transferred to the account of said Assignees without
reimbursement to or collection for the account of the Assignor(s).

The undersigned Assignees, jointly and severally, hereby accept the appointment
as Assignee hereunder, and indicates that he has received, read and approved the
escrow instructions controlling this transaction and any other related documents
thereto, and accents the obligations and rights imposed and granted thereunder.

ASSIGNOR:

Valley Bancorp, a Nevada corporation
_________________________________________
Steve Gilbert, Executive Vice President
and C.C.O.

ASSIGNEE:

Valley Bank, a Nevada corporation            ________________________________

_________________________________________    ________________________________
Gregory H. Schultz, Senior Vice President

                                   ACCEPTANCE

Undersigned Seller hereby accepts Buyer/Assignee in place of Assignor as the
substituted party to said escrow instructions, and agrees with Assignee to be
bound by the terms of the escrow instructions in all respects, as if Assignee
was originally named therein as a party in place of Buyer/Assignor.

SELLER:

Talon-Durango, LLC, a Nevada limited liability company

____________________________________________
Larry L.  Sayers, Managing Member

                                       11

<PAGE>

                              ASSIGNEE INSTRUCTIONS

January 20, 2005

ESCROW NUMBER:  04161218-086-JR

Escrow Agent is hereby instructed and directed that the Assignee(s) in the above
referenced escrow is/are to be Valley Bank, a Nevada Corporation and you are
hereby instructed to treat said assignee(s) in all respects as though they were
the original purchaser(s) to said escrow.

The undersigned Assignor(s) by signature(s) below, hereby relinquish all of
their right, title and interest in and to the subject escrow and the property to
which it pertains, and assign all such rights to the herein named Assignees.
Further, all funds heretofore deposited by Assignor(s) are hereby
unconditionally transferred to the account of said Assignees without
reimbursement to or collection for the account of the Assignor(s).

The undersigned Assignees, jointly and severally, hereby accept the appointment
as Assignee hereunder, and indicates that he has received, read and approved the
escrow instructions controlling this transaction and any other related documents
thereto, and accepts the obligations and rights imposed and granted thereunder.

ASSIGNOR:

Valley Bancorp, a Nevada corporation
_________________________________________
Steve Gilbert, Executive Vice President
and C.C.O.

ASSIGNEE:

Valley Bank, a Nevada corporation               ________________________________

_________________________________________       ________________________________
Gregory H. Schultz, Senior Vice President

                                   ACCEPTANCE

Undersigned Seller hereby accepts Buyer/Assignee in place of Assignor as the
substituted party to said escrow instructions, and agrees with Assignee to be
bound by the terms of the escrow instructions in all respects, as if Assignee
was originally named therein as a party in place of Buyer/Assignor.

SELLER:

Talon-Durango, LLC, a Nevada limited liability company

________________________________________
Larry L.  Sayers, Managing Member

                                       12

<PAGE>

APN: 163-01-110-005
Affix R.P.T.T. $9,180.00

WHEN RECORDED MAIL TO and MAIL TAX
STATEMENT TO:

VALLEY BANK
3500 WEST SAHARA

ESCROW NO: 04161218-086-JR

                            GRANT, BARGAIN, SALE DEED

THIS INDENTURE WITNESSETH:  That
      Talon-Durango, LLC, A Nevada limited liability company

in consideration of $10.00 and other valuable consideration, the receipt of
which is hereby acknowledged, do hereby Grant, Bargain, Sell and Convey to
Valley Bank, a Nevada Corporation all that real property situated in the County
of Clark, State of Nevada, bounded and described as follows:

SEE EXHIBIT "A" ATTACHED HERETO AND MADE A PART HEREOF.

Subject to:       1.    Taxes for the current fiscal year, paid current.

                  2.    Conditions, covenants, restrictions, reservations,
                        rights, rights of way and easements now of record, if
                        any.

Together with all and singular the tenements, hereditaments and appurtenances
thereunto belonging or in anywise appertaining.

                                       13

<PAGE>

ESCROW NO: 04161218-086-JR

Witness my/our hand(s) this 17th day of December, 2004.

SELLERS:

Talon-Durango, LLC, a Nevada limited liability company

______________________________________________________
Larry L. Sayers, Managing Member

STATE OF NEVADA   )
                          ) ss.
COUNTY OF CLARK   )

On this 17th day of December, 2004, appeared before me, a Notary Public, Larry
L. Sayers, personally known or proven to me to be the person(s) whose name(s)
is/are subscribed to the above instrument, who acknowledged that he/she/they
executed the instrument for the purposes therein contained.

_____________________________________________________________
Notary Public

My commission expires: _________________________

                                       14

<PAGE>

                                    EXHIBIT A

PARCEL I:

A portion of Lot One (1) of the Talon Professional Commercial Subdivision as
recorded in Book 114 of Plats, Page 79, Official Records of Clark County,
Nevada, being a portion of the Northwest Quarter (NW 1/4) of Section 1, Township
21 South, Range 60 East, M.D.B. & M., City of Las Vegas, Clark County, Nevada,
described as follows:

Commencing at the Northeast corner of said government Lot 14, Section 1,
Township 21 South, Range 60 East, M.D.B. & M., Clark County, Nevada; Thence
South 01 degrees 35'23" East, 304.83 feet; Thence South 88 degrees 24'37" West,
67.25 feet to the True Point of Beginning;

Thence South 01 degrees 46'02" East, 81.42 feet; Thence South 88 degrees 13'58"
West, 146.83 feet; Thence North 01 degrees 46'02" West, 81.42 feet; Thence North
88 degrees 13'58" East, 146.83 feet to the True Point of Beginning.

Said Parcel is also shown as Lot 1-1 of that certain Record of Survey filed in
File 135 of Surveys, Page 25, Official Records.

PARCEL II:

Non exclusive easements for vehicular and pedestrian ingress and egress, parking
and utility purposes over and across the Common Elements of the above referenced
subdivision, as provided for in and subject to that certain Declaration of
Covenants, Conditions and Restrictions for Talon Professional Centre, recorded
April 21, 2004 in Book 20040421 as document No. 03967, Official Records.

                                       15

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