Document:

Ex10.41

Exhibit 10.41

300 Continental Drive
Newark, DE 19713

Bonnie Beasley
Vice President, Human Resources

April 24, 2014

Mr. Jeff Dale
Apartment #2501
247 W. 46th Street
New York, NY  10036

Dear Jeff:

On behalf of Sallie Mae, I am pleased to offer you employment in the position of Chief Risk Officer of New BLC Corporation (the “Company”), which will be the public company successor of SLM Corporation following the separation of SLM’s education loan management business and consumer banking business. You will report into the Chief Executive Officer of the Company, and your principal place of employment will be Newark, Delaware. Your effective date of employment will be mutually agreed to by you and the Company As soon as practicable after expiration of garden leave with current employer, and no later than July 7, 2014. by May 5, 2014.

You initial annual salary of $400,000 will be paid bi-weekly, and you will be eligible to participate in the 2014 SLM Corporation Management Incentive Plan (MIP) or its successor plan with a target bonus of 100% of base salary in the amount of $400,000, and a guaranteed minimum bonus of $350,000 for 2014; provided that you are employed by the Company on the bonus payment date. More information on the terms and conditions of the MIP will be provided following the start of your employment.

When you begin your employment with the Company, you will receive a deferred cash award (the “Signing Cash Award”), with a value of $200,000, which will vest and pay out in equal tranches during the first quarter of each of 2015 and 2016; provided that you are employed by the Company on such payment date. However, if not previously vested, the Signing Cash Award will continue to vest and pay out at the times set forth above in the event that your employment is terminated by the Company for any reason other than for misconduct.

You will also receive a sign-on equity grant with a grant value of $200,000 as soon as practicable after you begin your employment with the Company. The award will be granted using the closing market price of the Company on the grant date and will be subject to vesting over the three years following your start date with the Company. You will also be eligible to participate in the Company’s annual equity grant program beginning in 2015, with a target equity grant value of $300,000 per year. Agreements detailing your awards and vesting terms will be provided at the time of grant.

You will participate in the benefits provided to officers of the Company at the Executive Officer level, including the SLM Relocation Services policy at the Executive Level, or its successor policy, and the SLM Corporation Executive Severance Plan for Senior Officers and the Change in Control Severance Plan for Senior Officers or their respective successor plans. Other benefits include the Executive Physical Program and the Supplemental 401(k) Savings Plan, in addition to our regular package of employee benefits.

 

____________________________
1As soon as practicable after expiration of garden leave with current employer, and no later than July 7, 2014.

You represent that you have not taken, and agree that you will not take in connection with your employment with the Company, an action that would violate any contractual or other restriction or obligation that is binding on you or any continuing duty you may owe to others. You acknowledge that in the event of a conflict with any other agreement (whether written or oral) or understanding that you have with SLM or the Company, the terms of this letter agreement control and that this letter agreement supersedes any prior discussions regarding your employment with the Company.

This offer is contingent on SLM’s standard employment practices, which means that your acceptance of this offer serves as an agreement to participate in company-requested background checks, which include drug screening and fingerprinting. We retain the right to rescind our offer depending on the outcome of these steps. As you may know, employment at SLM and the Company is at-will and nothing in this offer changes this status. SLM’s obligations and rights under this letter agreement, and any other to which you are subject with SLM, will automatically become those of the Company in connection with the separation of SLM’s business. The Company will withhold all taxes and charges that they are required by law to withhold.

Please indicate your acceptance of our offer as set forth herein by signing and returning this letter by May 5, 2014, as well as the enclosed Employment Application, Background Check Authorization and Agreement Regarding Confidentiality, Intellectual Property and Non-Solicitation.

Jeff, we are delighted to have you join Sallie Mae and look forward to working with you. Please contact me at 302-283-8119 with any questions you may have or if I can be of further assistance in your upcoming transition.

Sincerely,
    

Bonnie Beasley

Agreed and Signed by Jeff Dale:

__________________________________________________________        Date: ______________
Name: Jeff Dale

Agreed and Signed by New BLC Corporation:

__________________________________________________________        Date: ______________
Name: Ray Quinlan
Title: Chief Executive Officerex1044

DM_US 14702698-2J064500.0013   SALLIE MAE 401(k) SAVINGS PLAN   -- Plan Document --   Effective as of April30, 2014   Exhibit 10.44    

 

ARTICLE 1   1.01   1.02   ARTICLE2   2.01   2.02   2.03   2.04   2.05   2.06   2.07   2.08   2.09   2.10   2.11   2. 12   2.13   2.14   2.15   2.16   2.17   2.18   2.19   2.20   2.21   2.22   2.23   2.24   2.25   2.26   2.27   2.28   2.29   2.30   2.3 I   2.32   2.33   2.34   2.35   2.36   TABLE OF CONTENTS   Page   NAME AND EFFECTIVE DATE .............. ...... .......... ... ....... .......... ... ............. I   Name of Plan ......... .. .............. .. ... ...... ... ... .... .. ...... ... ... .... ....... ... .. .... ... .... ............ 1   Effective Date ...... .............. ................ ................................. ....... ..... ............ .. ... 1   DEFINITIONS ................................................................................................. 3   Affiliated Employer .... ......... ...... ... ......... ... ... ..... .. .. ... .. .. ... ........ .. ... .... ........... .. ... 3   Aggregation Group ......... ..................... ................ ..... ....... ............ ....... ..... ........ 3   Authorized Leave of Absence ......... ..... .. ...... .. ........ ... ........ .. ................. .... ........ 3   Beneficiary ........ ... .. ...... ... ..... ....... .. ........ .... .. ..... ...... ........... ...... ....... ..... .. ... ....... . 3   Board of Directors ............................... ...................... ..... ................................. 4   Code ....... ...... .. ... ... ,. ........ .... .. ... ... ...... ... .. .. ... ... ... .. ...... .. .. .. ... ...... ... ....... ...... ..... ... .. ... ...... ... .......... . ... .. ..... ...... 4   Committee ..... .... .... ... ... .. ................. ...... ... .. .... ......... .. ... .. .. ..... ............. .... ........ ... 4   Compensation ..... .................. ........ ...................... .... ..... ........... .. .... ........ ....... ... . 4   Corporation .... .. .... .. .. ...... .... ... .... ... .... ..... .. ... ..... .. ... ..... ... .. .............. ......... ... .. ...... 5   Determination Date ................ .................. ........... ......... .................................... 5   Direct Rollover ... .. ..... ..... ... ..... ... .... ..... ...... .. ... ..... ......... .. ........ .. .. .. .... .. .... ..... .. .... 5   Disabirity .. .. .......... .. .... .. .... ... .. .. .. ..... .. .. .. ... .... .............. .. .... ...... .. .. ........ ... ... ....... .. 5   Effective Date .... ............. ......................... ......... ........... ............ .. ... .. ............... .. 5   Eligible Retirement Plan .................................................................. ............ .... 5   Eligible Rollover Distribution ... ... ........... ................. ..................................... .. 6   Emp1oyee ................ ............. ........ ............ ........ ...... ...... .. ...... .. ......... .......... ..... .. 6   Employee Account .. ..... .. ......... ... ...... ... ..... .. .. .... ........ ... .... ..... ... ........ .... ...... ....... 7   Employee Contribution ......... .................................... .................... ................... 8   Employer .. ... .. ...... ... .............. ....... .. ... ........ ..... ............... ....... .. .. ............ ..... ..... .. .. 8   Employer Core Contribution .. .... .... ....... ... .. ... ....... .. .. .......... ............ ...... ....... .... 8   Employer Discretionary Profit-Sharing Contribution ................ ...... ....... ......... 8   Employer Matching Contribution .. .... ... .. .... .... ....... .. .. ........ .. .. ...... .. .... .. ... ..... .... 8   Employment Commencement Date ....... ..... ......... ............................................ 8   ERISA ... ........ ....... .. ..... .. .. ....... ....... ...... ............. .... .... ....... ............ ... ....... ...... ..... 9   Five Percenr Owner ... ........... ....... .... .. ...... ...... .. ........ .. .... .. ..... ... .. .. ...... ........... ... 9   Fund · ··~~· · ·· ~r ....... .... . ~ ... ....... ... .... ......................... ........................ ........... ..................... .................... 9   Highly Compensated Employee .. ........ .. ... ... ....... .. ...... ... .... .. .... .. ....... ........... .. .. . 9   Hour of Service ......... ................. ...... ........................ ............... ....... ................ 10   Key Employee ....... ... .. ........ ............... ... ...... .. .. ...... ..... ......... ...... ...... .. ... ..... ... .. . 10   Leased Employee .. .. ... ... .... ........... ............... .... ..... ....... ... ... .... ......... .... ....... ... .. f 1   Named Fiduciary.... ........... ............... .... ............... ......... ................. ................ . ll   Navient. .. ... ...... ............. .... ......... ................ .. .. .. .. .. ........ ......... .. .. ...... ...... .. .. ..... · 1 l   Navlent Common Stock .... .... ... .................... ..... .... .. .... ....................... .... ...... .. II   Navient Stock Fund ............................. .............. ......... .. ..... ..... ...... ................. l l   Navien€ Plan ... ........... ... ... ... .......... ..... .. ............ ..... ....... .......................... ... ...... I I   Non-deferred Co1npensation ........... ............. ..................... .... ................. ........ l 1   DM_US 14702698-H.064SOO.Ocm     

 

2.37   2.38   2.39   2.40   2.41   2.42   2.43   2.44   2.45   2.46   2.47   2.48   2.49   2.50   2.51   2.52   2.53   2.54   2.55   2.56   2.57   2.58   2.59   2.60   2.61   2.62   2.63   2.64   ARTlCLE3   3.01   3.02   3.03   3.04   3.05   3.06   ARTICLE4   4.01   TABLE OF CONTENTS   (continued)   Page   Non-K,ey Employee .. .. .. ........ .......................... ............... .. .................. ............ . 13   Normal Retirement Age ............... ................... ........... .... ....... ............. ............ 1 3   One Percent Owner .... .. .... ... ....... .... ........... ... ...... .. ..... ... .... ....... ........ .... ..... ... .. . 13   Participant .. .. ....... ....... ............... .. ....... ... ............. ....... ..... .... .. ........... .............. . 13   Pension Plan...... .. ............ ............ ........... .. ........... .. ... ............ ........... ....... ....... . 14   Period of Service ... ...... ... ... ... ... .. .. ... ... ... .. ..... .... .. .. ... ..... .. .... ... ...... ..... ..... .. .. .... .. 14   Period of Severance ... .... ........... .......... ......... ....................... ............ ..... .......... 14   Permissive Aggregation Group ........ ... ....... ....... ...... .. ... ...... ..... ............. .. ........ 14   Plan .. ... .. ........ ... .. ....... .. ... ...... .................. ........ .......... .. ... ..... .... .. .. ......... .. .. .. ..... 14   Plan Administrator ....... ... ..... .... ................ ............ ............. ..... ........... .. ........... 14   Plan Year .......... ............. .. .... ........................ ............ .... ........ .... ..... ....... .. .. .... ... 14   Qualified Beneficiary .. .. .. ...... .... .... ...... ... ... .. ... ..... .. ........ ...... ... .. .. .... ........ .. ...... 14   Qualified Non-Elective Contribution .................... ......................................... 15   Reempfoyment Commencement Date ... ... ......... .......... ...... ...... .. ............. .. ... .. 15   Required Aggregation Group .... ........ ........ ......... ... ..... ....... ......... .... .... ... .. ....... 15   Rollover Contribution .................. ........... ............................................... ........ 15   Service Contract Act Contribution .. .. .................... ......... ... .. ....... .... .... .......... . 15   Severance from Service Date......... ........ ... ......... .. ... .. ............ ........... ..... ......... 15   SLI\11 Common Stock ..................................................................................... 15   SLM Stock Fund ....... ...... .... ..... .... ...... ............. .............. .. ................... ...... ...... 16   Top Heavy Group .................. ..... .. ....... .... .... .. ..... ............. ....... ........... .. .... .. .... 16   Top Heavy PJafl .... ....................... ...... ...................................... ................ ....... 16   Trust Agreement ..... ........... ..... ......... .. ... ...... ........ .. .. .... ....... ... ... ..... ... .. ........... . 16   Trustee .. .... ........ .. .......... .. .. ........... ............ .... ........... ............ ........................... 16   Valuation Date .... .............................. .......... ........... ................................ ........ l7   Vested Benefit. .............. ....... ... .... ... ... ... .. ..... ..... .. .... ... .. ..... .. .... ... ... .. .. ............. . 17   Year of Participation ...... ... .................................. ................. ... ....... ............. ... 17   Year of Vesting Service ........ ........... ........... ................ .......... ..... .................... 17   ELIGffiiLITY & PARTICIPATION ........................................... .................. 18   Eligibility ...... .. ............ ......... ......... ...... .. .... ....... ......... ....... ....... .. ...... .... ..... .. .. .. 18   Participation ..... .... ......... ... .... ...... ...................... ... ... ............... ............. ...... ..... . 18   Re-employment of Former Parricipant or Former Employee and   Change in Employment Status ............. ..... .... ... ... .. ......... ..... ... ... .... ..... ......... ... 19   Transfer of Participant to Another Employer ........ ................ ............ ..... ....... 20   Transfer of Participant to an Affitiated Employer ..................................... .... 20   Transfer of Participant from Affiliated Employer ... ..... ..... ... .. ..... .. .. .. .......... .. 20   CONTRffiUTIONS .. .. ............. ................ ..... ........ ............ ................ ............. 21   Employer Contributions .. ....... .. ............... .. ........ ............................................. 21   DM_US 1 4?02698 ·1~ .064500.00 1 3   -j j.     

 

4.02   4.03   4.04   4.05   4.06   4.07   ARTICLES   5.01   5.02   5.03   5.04   5.05   5.06   5.07   ARTICLE6   6.01   6.02   6.03   6.04   6.05   ARTICLE 7   7.0J   7.02   ARTICLE 8   8.01   8.02   8.03   8.04   8.05   TABLE OF CONTENTS   (cominued)   Page   Rollover Contributions .... ... ... ...... ...... ..... .... .. ..................... ... ..... ...... ........ ...... 22   Distribution of Employee Contributions that Exceed tile Statutory   Limitation ..... ........ ... .. ........ ........ .... .... ....... ... ... ... ... ........... .... ..... .. .. ..... .. ..... ...... 23   Change of Contribution Rate and Suspension of Contributions ...... .............. 23   Paymenl to the Trustee ...................... .................. ............ .. ............... ............. . 24   Safe Harbor Requirements .. .. ................... ..... .. ... ............. .... ......... .. .. ......... ... .. 24   Maximum Benefit and Contribution Limitations .......................................... 24   INVESTMENT ELECTIONS AND ACCOUNTS OF   PARTICIPANTS ........... ........................................ ........................................ 27   Panicipant Investment Elections ...... .... ... ......... .. ........... .. ... ...... ..... .... .. .... ..... . 27   Investment Alternatives ........... .......... .................. ..................................... ..... 27   S.LM Stock Fund ...................................... ........................................ .. ............ 27   Allocation to Accounts ............ .. ... ....... ... ... ......... .. .... ......... .. ... ........... .... ........ 27   Determination of Account Balances Binding ............ ............................ ...... .. 28   Panicipation of Additional Employers ... ..... ... .......... ..... ...... ..... .. .............. ..... 28   Voting Rights of SLM Common Stock ... ... ......... ... ... ...... .... .. ..... ...... ... .. ..... .. . 28   lN...SERVICE WITHDRAWALS AND LOANS .......... ...... ..... ........... .. .. .. .... 29   Withdrawals from Voluntary Contribution and Participant   Contribution Sub~ Accounts .......... ......... ...... .... ....... ................................. ...... 29   Withdrawals from Rollover Contribudon Sub-Accounts .... .. .. ..... ...... ..... ...... 29   Withdrawal from Employer Matching Contribution Sub-Accounts.   Employer Discretionary Profit-Sharjng Contribution Sub-Accounts.   Employer Core Contribution Sub-Accounts. and Servic~ Contract Act   Contribution Sub-Accounts ......... ......... .... ........................ ... ...... .......... ........ .. 30   Hardship Withdrawals from Employee Contribution Sub-Accounts ............ 30   Loans .... ....... ..... .. .. ..... .. ... ...... ........ ..... ..... .. .. ....... .... .... .. .. ......... ...... .. .. .... .. ...... .. 32   VESTING ...... ....... .... ..... .. ................... ........... ....... ...... .. ... .... .. .......... .......... .... 33   Vesting ...... .... ..... .......... .. .......... ............ .................... ...................................... 33   Re-employment of Former Participants ......... ............................ ........ ........... . 33   DISTRIBUTIONS .. ............ .. .... ....... .................. ............ ..... ........... ................ 34   Earliest Time for and Method of Distribution of Benefits .. ...... . .. ..... ..... ... ..... 34   Time of Payment ................................ .................................................. ... ....... 34   Distribution of SrnaU Benefits ........ .... .... .. ............... .. ......... ................... .. ...... 34   Larest Time for Distribution .. ... ........... .. .. ....... .. ...... .. ... ....... ... .. .... .. ...... .. .... .... 35   Missing Participant or Beneficiary ... ............ .......... .......... ..... ......... ...... ......... 36   DM US 14702b98-!Hl64~00.00t>   -iii -    

 

8.06   8.07   ARTICLE9   9.01   9.02   9.03   ARTICLE 10   10.01   ARTICLE 11   11.01   11.02   ARTICLE 12   12.01   12.02   12.03   12.04   ARTICLE 13   13.01   13.02   13.03   ARTICLE 14   14.01   14.02   14.03   14.04   14.05   14.06   14.07   !4.08   14.09   14.10   I 4.1 1   TABLE OF CONTENTS   (continued)   Page   Election of Direct RoHover of a Vested Benefit.. .. .. .. .......................... ... .... .. . 36   Death of a Participant During QuaJified Military Service .. ................ .. .. ....... 37   PLAN ADMINISTRATION .................................. ... .... ............. ... ............ .. .. . 38   Committee ............................ ......... ........... ............ .......................................... 38   Powers and Duties of the Committee ................... ..... ....... .. ......................... .. 38   Delegation of ResponsibiJides ..... .... ...... .. .... ................... .. .............. ....... ..... ... 38   CONTROL AND MANAGEME T OF ASSETS .................................. ...... 39   In General. ...................................................................... ......... ...... ....... .. .. ...... 39   FIDUCIARY LIABILITY INSURANCE AND INDEMNIFICATION ........ 40   Fiduciary Liability Insurance ....... ..... .......... ... ...... ..................... .. ......... .... .. .. .. 40   Indemnity ..... .................... ...................................... ...................................... .. 40   AMENDMENTS TO OR TERMINATION OF THE PLAN ........................ 41   Right of Corporation to Amend or Terminate the Plan ....... ............. .. ... ........ 41   Termination of Plan ................ .. ......... ..................................... ... ..... ............... 41   Withdrawal of an Employer ...................... ..................................... ....... ......... 41   Plan-to-Plan Transfer ...... .... ....... ... .. .. .. ................. .... ........ ....... .......... ... .... ...... 42   TOP HEAVY PROVISIONS ................. .. ........... ............. .................... .. .... ... 43   Top Heavy Plan Requirements ....... ................................ ............................ ... 43   Top Heavy Minimum Contribution Requirement .................................. ... .. .. 43   Top-H.eavy Provisions ........... ... ..................... ......... .... ... .......... .................. .... 43   MISCELLANEOUS .... ... ..... ...... ... .. ......... ..... .. .... ................................ .... ..... .. 44   Rights of Emptoyees ......... .............. ........ .............. ............. .. ..... .................... . 44   Notice of Address .......... .. ......... .... ....... .... .. ....... ... .......... .. ...... .. .. ...... ........... ... 44   Data4 .. ......... 4 .. .......... ..... .. ..... ..... ... ................. ..... .................. .. . . ............ .. .... .... .. . .. ..... ....... . ..... .. .... .. .. . .. . . ..... .. 44   Merger ....... ... ... .. ......... ... ... ...... .......... ..... .. ........ ........... ....... ... ............ ....... ............................ 44   Fund to be for the Exclusive Benefit of Panicipants ... ..... ..... ..... ............. ...... 44   Facility of Payment .... ............................................................... .................... . 45   Restrictions on Alienation .. .... ...... .. ........ ....... ... ......... ....... ........ .... ...... ... .. .. .... 45   Headings ....... ....... .... .. .......... ........ .......... .............. ............ ...... ........................ 45   Construcljon ..... .. ....... .. ..... ...... ... ... ...... ............ .. ......... ... .......... .... ........ ............ 45   Exclusion and Severability ... .... ...... ... .... ..... .. .. ... ......... ...... .... .. ........ .... ........... 45   Special Rule Relating to Military Service .... ............ ......................... ............ 46   OM_US I4702693·21.064SOO.OOU   - IV•     

 

14.12   14. t3   ARTICLE 15   15.01   15.02   15.03   ARTICLE !6   APPENDIX A   APPENDIX B   TABLE OF CONTENTS   (continued)   Page   Application of Forfejtures .... ....... ... .. .... .. .. .. .. .... ... ......... .. ... .. .. .. .... ..... .. .. .... ..... . 46   Contractual Limitation Period ...... .............. .......... .............. ........................... 46   SPECIAL PROVISIO S APPLICABLE TO CORPORATE   TRANSACTIONS ...... .. ........ .. ...... ......... ........ ...... .. ..... ........... .. ....... ..... .... ... ... 47   Special Vesting Provisions ......... ............ ........... .. .......... ................................ 47   USA Group Special Provisions ....... .. ..... ... .... ... .......... ... ....... .. ... ... .. .. .... ...... .. . 48   Southwest Smdent Services Corporation Special Provisions .............. .......... 48   SIGN.ATURE ...... .... .... .. ... ... ......... .... ... .... ... .............. ........ ... ............... ..... ....... 49   SALLIE MAE 40l (K) SAVINGS PLAN PARTICIPATING   EMPLOYERS ................... ..................... ............... .. ........... ............ ....... .... ..... 50   ADDITIONAL PROVISIONS RELATED TO REQUIRED   MINIMUM DISTRIBUTIONS .... .. .. .. .... .. ......... .. .. .. ....... .. .. ... .... ... .... ...... ..... .. . 51   DM_US 14702698-23.064500.0013 -v~     

 

ARTICLE 1   NAME AND EFFECTIVE DATE   1.01 Name of Plan. Effective November 1, 1997, this Plan shall be known as the   Sallie Mae 401 (k) Savings Plan. Prior to November l, 1997, the Plan was known as the Student   Loan Marketing Association Employees' Thrift and Savings Plan.   This Plan is a profit-sharing plan. This Plan is intended to qualify as a participant   directed account plan under section 404( c) of ERISA.   1.02 Effective Date. The Effective Date of the Plan is April l, 1974. The Plan was   amended and restated to reflect statutory changes that are generally effective January 1, 1997,   (except to the extent an amendment required by a statutory enactment is effective on a later date,   as stated herein), and to reflect administrative changes to the Plan. The Plan was restated as of   February 28, 1999, to reflect amendments made to the Plan after January 1, 1997 and effective on   February 28, 1999 unless otherwise stated herein. The Plan was further restated as of December   31 , 1999 to reflect amendments through December 31 , 1999, and the Plan was further restated as   of December 31, 2001 to reflect amendments through December 31, 2001 . The Plan was further   amended by the First Amendment to the Sallie Mae 401(k) Savings Plan to comply with the   Economic Growth and Tax Relief Reconciliation Act of 2001, and to incorporate certain other   plan design changes. The Plan was further amended by the Second Amendment to the Sallie   Mae 401(k) Savings Plan, effective as of January 1, 2003 or as otherwise provided, to incorporate   certain plan design changes. The Plan was thereafter amended as of January 1, 2006 to   incorporate changes to the optional forms of benefit and for purposes of further defining   eligibility and vesting service for new participants added to the plan as a result of acquisition. In   addition, the Plan was amended by the First Amendment to the Sallie Mae 401(k) Savings Plan   (as most recently restated as of January 1, 2010), effective January 1, 2007 (or such later   effective date provided therein), to incorporate certain changes required by the Heroes Earnings   Assistance and Relief Tax Act of 2008.   The Plan was further restated as of September 1, 2006, to reflect amendments   through January 1, 2006. The Plan (as most recently restated as of September 1, 2006, to reflect   amendments through January l, 2006) was then amended as follows: ( 1) by the First   Amendment, effective as of January 1, 2006, or as otherwise provided, to incorporate certain   changes required by the final regulations issued under section 401 (k) of the Code; (2) by the   Second Amendment, effective as of August 1, 2007, to incorporate changes related to a freeze in   eligibility and participation under the Plan; (3) by the Third Amendment, effective as of October   I , 2008, to make changes to the definition of Compensation and the amount of Employer Core   Contributions and Employer Matching Contributions; (4) by the Fourth and Fifth Amendments,   effective as of January 1, 2008, to clarify the administrative provisions of the Plan and to comply   with the final regulations issued under section 415 of the Code; (5) by the Sixth Amendment,   effective as of September l, 2009, to reflect a special employer discretionary contribution (a   "Service Contract Act Contribution") exclusively for employees designated by the Corporation as   government contract employees; (6) by the Seventh Amendment, effective January 1, 2007 and   OM US 14702698·23.064500 .0013   -1-    

 

January l, 2008, to incorporate certain changes required by the Pension Protection Act of 2006;   (7) by the Eighth Amendment, effective for distributions on and after January 1, 2003, to comply   with the final regulations issued under section 40l(a)(9) of the Code; and (8) by the Ninth   Amendment, effective January l, 2009, to clarify how the Plan has been administered. The Plan   was further amended and restated, effective as of January 1, 20 I 0, to reflect the merger of the   Sallie Mae 401 (k) Retirement Savings Plan into the Plan, to restore the eligibility and   participation provisions, and to reflect amendments through January I, 2010.   The Plan is hereby further amended and restated, effective at 4:00pm EDT on   April 30, 2014, for the spinoff of Navient from the Corporation. In connection with and pursuant   to the spin-off of Navient from the Corporation, the following portions of Employee Accounts   shall be spun-off from the Plan and transferred to, and received by, the Navient Plan:   (a) Participants employed by an Employer at 4:00pm EDT on April 30, 2014   shall have the Navient Plan receive all Navient Common Stock distributed on April 30, 2014   with respect to SLM Common Stock held in the SLM Stock Fund on April 30, 2014; and   (b) individuals employed by Navient or an affiliated employer of Navient at   4:00pm EDT on April 30, 2014 shall have (i) the Navient Plan receive all Navient Common   Stock distributed on April 30, 2014 with respect to SLM Common Stock held in the SLM Stock   Fund on April 30, 2014 and (ii) all accounts under the Plan (other than the portion of any   accounts invested in the SLM Stock Fund on April 30, 2014) transferred to the Navient Plan as   soon as practicable after April 30, 2014; and   (c) individuals who, as of 4 :00pm EDT on April 30, 2014, were treated as   terminated vested Participants under the Plan shall have (i) the Navient Plan receive all Navient   Common Stock distributed on April 30, 2014 with respect to SLM Common Stock held in the   SLM Stock Fund on April 30, 2014 and (ii) all accounts under the Plan (other than the portion of   any accounts invested in the SLM Stock Fund on the April 30, 2014) transferred to the Navient   Plan as soon as practicable after April 30, 2014.   Except as may otherwise be provided by ERISA or other law or the terms of this   Plan, the benefit of a former Participant who terminated his employment with an Employer   before the effective date of an amendment shall be governed by the provisions of the Plan as in   effect on the date of such termination.   OM_US 14702698-23.064500.0013   -2-    

 

ARTICLE2   DEFINITIONS   The following words and phrases shall have the following meanings unless a different meaning is   plainly required by the context:   2.01 Affiliated Employer. "Affiliated Employer" means:   (a) any corporation which is in the same "controlled group of corporations",   as defined in section 414(b) of the Code, as an Employer, but which is not an Employer;   (b) any trade or business which is under common control, as defined   in section 414(c) of the Code, with an Employer, but which is not an Employer;   (c) any employer that is a member of an affiliated service group, as defined in   section 414(m) of the Code, that includes an Employer, but which is not an Employer; or   (d) any other entity that is required to be aggregated with an Employer   pursuant to regulations under section 4 I 4( o) of the Code, but which is not an Employer.   A corporation, a trade or business, an employer or an entity is an Affiliated   Employer for all purposes under the Plan only during the period or periods when the   corporation is a member of the same controlled group of corporations as an Employer, when   the trade or business is under common control with an Employer, when the employer is a   member of an affiliated service group that includes an Employer, or when the entity is required to   be aggregated with an Employer. For purposes of Section 4.07, the definitions prescribed   by sections 414(b) and 414(c) of the Code shall be modified as provided by section 415(h) of   the Code.   2.02 Aggregation Group. "Aggregation Group" means either a Required Aggregation   Group or a Permissive Aggregation Group.   2.03 Authorized Leave of Absence. "Authorized Leave of Absence" means:   (a) a leave of absence of an employee approved by an Employer or Affiliated   Employer in accordance with rules that apply on a uniform basis to all similarly situated   employees; or   (b) a leave of absence of an employee as required by the Veteran Re-   employment Rights Act or other applicable law.   2.04 Beneficiary. "Beneficiary" means the person, persons or entity, including one or   more trusts, last designated, on a form supplied by the Committee, by a Participant as a   beneficiary, co-beneficiary or contingent beneficiary to receive benefits payable under the Plan in   the event of the death of the Participant; provided, however, that in the case of a married   DM_US 14702698-23.064500.0013   -3-    

 

Participant, the Beneficiary shall be the Participant's survtvmg spouse, unless the surviving   spouse consents, on a form supplied by the Committee, to the designation of another Beneficiary   or Beneficiaries. The spouse' s consent must acknowledge the effect of such designation, must be   witnessed by a Plan representative or a notary public, and, unless the spouse executes a general   consent, must acknowledge the specific non-spouse Beneficiary, if any, including any class of   Beneficiaries or any contingent Beneficiaries. A general consent to permit the Participant to   change his Beneficiary without any requirement of further consent by his spouse is valid only if   the spouse acknowledges that the spouse has a right to limit consent to a specific Beneficiary and   the spouse voluntarily relinquishes that right. Notwithstanding the above, if it is established to   the satisfaction of a Plan representative that such consent may not be obtained because there is no   spouse or because the spouse cannot be located, no consent will be required. Spousal consent is   also not required if the Participant is legally separated or the Participant has been abandoned,   within the meaning of local law, and the Participant has a court order to such effect. If the   spouse is legally incompetent to give consent, the spouse's legal guardian, even if the guardian is   the Participant, may give consent.   If no designation of a Beneficiary is in effect at the time of death of the   Participant, or if no person, persons or entity so designated shall survive the Participant, the   Beneficiary shall be the Participant's surviving spouse, if any, or if there shall be no such   surviving spouse, the Beneficiary shall be the estate of the Participant.   2.05 Board of Directors. "Board of Directors" or "Board" means the Board of   Directors of the Corporation.   2.06 Code. "Code" means the Internal Revenue Code of 1986, as amended.   2.07 Committee. "Committee" means the committee appointed to administer the Plan   as provided in Article 9 .   2.08 Compensation. "Compensation" means, for the portion of a Plan Year during   which an Employee is a Participant, the gross amount of base salary, overtime, shift differential,   bonus and commissions paid by the Employer to an Employee for services rendered as an   Employee to or on behalf of the Employer, including payments for sick leave, vacation, holidays,   jury duty, bereavement and other paid leaves of absence, recruiting/job referral bonuses, plus any   amount that is deferred or reduced pursuant to a salary reduction agreement in respect of which   the Employer makes contributions to this Plan or to a cafeteria plan within the meaning of   section 125 of the Code, except that Compensation shall not include severance, hiring bonuses,   long-term disability payments, any amount deferred or paid under a nonqualified deferred   compensation plan maintained by the Employer; amounts paid on account of the Corporation's   Vacation Sell Program; or amounts paid on account of the exercise of stock options or on   account of the award or vesting of restricted stock or other stock-based compensation. The   annual Compensation of each Participant taken into account under the Plan shall not exceed   $260,000 (for 2014), adjusted as of January I of each calendar year pursuant to sections   40l(a)( 17) and 415(d) of the Code.   DM_US 14702698-23.064500.001 3   -4-    

 

2.09 Corporation. "Corporation" means SLM Corporation or any other person, firm   or corporation which may succeed to the business of SLM Corporation by merger, consolidation   or otherwise and which, by appropriate action, shall adopt the Plan, except that prior to May 17,   2002, "Corporation" means USA Education, Inc. , prior to July 31 , 2000, "Corporation" means   SLM Holding Corporation, and prior to August 7, 1997, "Corporation" means Student Loan   Marketing Association.   2.10 Determination Date. "Determination Date" means, with respect to any Plan   Year, (a) the last day of the immediately preceding Plan Year, or (b) in the case of the first Plan   Year of the Plan, the last day of such Plan Year.   2.11 Direct Rollover. "Direct Rollover" means a payment by the Plan of an Eligible   Rollover Distribution to the Eligible Retirement Plan specified by the Participant or a Qualified   Beneficiary.   2.12 Disability. "Disability" means a mental or physical condition for which an   individual receives disability benefits for total and permanent disability under either (a) the   Federal Social Security Act or (b) any welfare plan maintained by the Employer that provides   long-term disability benefits.   2.13 Effective Date. "Effective Date" means April 1, 1974, the date when this Plan   first became effective.   2.14 Eligible Retirement Plan. "Eligible Retirement Plan" means an individual   retirement account described in section 408(a) of the Code, an individual retirement annuity   described in section 408(b) of the Code, an annuity plan described in section 403(a) of the Code,   a qualified trust described in section 40l(a) of the Code, an eligible deferred compensation plan   described in section 457(b) of the Code that is maintained by an eligible employer described in   section 457(e)(l)(A) of the Code and that agrees to separately account for amounts rolled into   such plan from this Plan, an annuity contract described in section 403(b) of the Code, or a Roth   IRA if the rollover requirements of sections 402(c) and 408A of the Code (as applicable) are met,   that accepts the Participant's or Qualified Beneficiary's Eligible Rollover Distribution.   However, in the case of an Eligible Rollover Distribution to a surviving spouse who is not an   alternate payee under a qualified domestic relations order, as defined in section 414(p) of the   Code, an Eligible Retirement Plan is an individual retirement account described in section 408(a)   of the Code or an individual retirement annuity described in section 408(b) of the Code.   In the case of an Eligible Rollover Distribution to a Qualified Beneficiary who is   the Participant's or former Participant's surviving spouse, or spouse or former spouse who is an   alternate payee under a qualified domestic relations order (as defined in section 414(p) of the   Code), an Eligible Retirement Plan shall be defined in the same manner as if such Qualified   Beneficiary were the Employee. However, in the case of an Eligible Rollover Distribution to any   other Qualified Beneficiary, an "Eligible Retirement Plan" shall include only an individual   retirement account described in section 408(a) of the Code, an individual retirement annuity   DM_US 14702698-23.064500.0013   -5-    

 

described in section 408(b) of the Code, or a Roth IRA, if the rollover requirements of sections   402(c) and 408A of the Code (as applicable) are met.   2.15 Eligible Rollover Distribution. "Eligible Rollover Distribution" means any   distribution of all or any portion of a Participant's Vested Benefit, except that an Eligible   Rollover Distribution does not include: any distribution that is one of a series of substantially   equal periodic payments, made not less frequently than annually, for the life, or life expectancy,   of the Participant or the Participant's designated beneficiary or the joint lives (or joint life   expectancies) of the Participant and the Participant's designated beneficiary, or for a specified   period of ten years or more~ any distribution, to the extent such distribution is required under   section 40 l ( a)(9) of the Code; the portion of any distribution that is not includible in gross   income, determined without regard to the exclusion for net unrealized appreciation with respect   to employer stock; and any amount distributed on account of hardship.   Notwithstanding any provision of the Plan to the contrary, a portion of a   distribution shall not fail to be an Eligible Rollover Distribution merely because the portion   consists of voluntary employee contributions that are not includible in gross income~ provided,   however, such portion may be transferred only to an individual retirement account or annuity   described in sections 408(a) or (b) of the Code, a qualified retirement plan (either a defined   contribution plan or a defined benefit plan) described in section 40l(a) or 403(a) of the Code, or   an annuity contract described in section 403(b) of the Code that agrees to separately account for   amounts so transferred and earnings thereon, including separately accounting for the portion of   such distribution which is includible in gross income and the portion of such distribution which   is not so includible.   2.16 Employee. "Employee" means any person who is employed by an Employer.   Notwithstanding the prior provision, the following classifications of employees are excluded:   (a) any such person who is a member of a unit of employees covered by a   collective bargaining agreement where retirement benefits have been the subject of good faith   collective bargaining between the collective bargaining agent and an Employer, unless such   collective bargaining agreement expressly provides for the inclusion of such persons as   Participants in the Plan~   (b) any such person who is a Leased Employee;   (c) any such person who is treated by an Employer as a Leased Employee,   independent contractor, or employee of a third party other than the Employer or Affiliated   Employer, even if such person is later determined to have been a common law employee of the   Employer~   DM_US 14702698-23.064500.001'   -6-    

 

(d) any Employee who is hired in order to participate in a training program   established for the purpose of training and recruiting future full-time Employees, such as intern,   co-op, mentor or any other similar program that may be implemented by the Employer; and   (e) any Employee employed on a temporary or periodic basis, by the   Corporation or by any Affiliated Employer, where such Employee from time to time accepts, at   his or her discretion, job assignments having a fixed and limited duration, such as (but not   limited to) special project(s) to cover illness, vacation or other temporary vacancies or unusual or   cyclical employment needs, at potentially varying rates of compensation commensurate with each   job assignment and who is classified in the Employer's records as a "temporary employee."   When used in the Plan without an initial capital letter, the term "employee" means   any person who is employed by an Employer or Affiliated Employer under the common-law   standard.   2.17 Employee Account. "Employee Account" means a separate account maintained   for each Participant which is composed of the following sub-accounts (to the extent amounts are   credited to any such sub-account):   (a) an Employee Contribution sub-account, which consists of the Employee   Contributions contributed to the Plan pursuant to Section 4 .0l(a);   (b) an Employer Matching Contribution sub-account, which consists of the   Employer Matching Contributions contributed to the Plan pursuant to Section 4.0 l (b);   (c) an Employer Discretionary Profit-Sharing Contribution sub-account,   which consists of the Employer Discretionary Profit-Sharing Contributions contributed to the   Plan pursuant to Section 4 .0 1 (c);   (d) an Employer Core Contribution sub-account, which consists of the   Employer Core Contributions contributed to the Plan pursuant to Section 4.0l(d);   (e) a Rollover Contribution sub-account, which consists of a Participant's   Rollover Contributions contributed to the Plan pursuant to Section 4.02;   (f) a participant contribution sub-account, which consists of the participant   contributions contributed to the Plan prior to January 1, 1982;   (g) a voluntary contribution sub-account, which consists of the voluntary   contributions contributed to the Plan prior to January 1, 1987;   (h) a Qualified Non-Elective Contribution sub-account, which consists of any   Qualified Non-Elective Contributions that were previously contributed to the Plan as necessary to   pass the nondiscrimination tests described in section 40 I (k)(3), 401 (k)(l2), 40 I (m)(2), or   401 (m)( 11) of the Code; and   DM_US 14702698-23.064500.0013   -7-    

 

(i) a Service Contract Act Contribution sub-account, which consists of the   Service Contract Act Contributions contributed to the Plan pursuant to Section 4.0 I (g).   Each sub-account shall be adjusted as of each Valuation Date to reflect investment   earnings or losses thereon and any other applicable adjustments thereto, including such   allocations described in Section 5.04.   From time to time, additional sub-accounts may be established and maintained for   recordkeeping purposes to protect optional forms of benefits, rights and features as may be   required upon plan asset transfers arising from mergers and acquisitions.   2.18 Employee Contribution. "Employee Contribution" means a contribution made   to the Plan by an Employer pursuant to an Employee's salary deferral election.   2.19 Employer. "Employer" means the Corporation or any wholly- or majority-owned   subsidiary of the Corporation or any organization affiliated with or associated with the   Corporation which adopts the Plan and becomes a party to it with the written approval of the   Committee or otherwise becomes a party to it as of 4:00pm EDT on April 30, 2014. A list of the   Employers as of the date of this restatement is attached hereto as Appendix A.   2.20 Employer Core Contribution. "Employer Core Contribution" means a   contribution to the Plan by the Employer in accordance with Section 4.0l(d).   2.21 Employer Discretionary Profit-Sharing Contribution. "Employer   Discretionary Profit-Sharing Contribution" means a contribution to the Plan by the Employer in   accordance with Section 4.0l(c).   2.22 Emplover Matching Contribution. "Employer Matching Contribution" means a   contribution to the Plan by the Employer in accordance with Section 4.01 (b), which matches in   whole or in part an Employee Contribution made to the Plan on behalf of an Employee.   2.23 Employment Commencement Date. "Employment Commencement Date"   means the date an employee first performs an Hour of Service for an Employer or Affiliated   Employer.   2.24 ERISA. "ERISA" means the Employee Retirement Income Security Act of 1974,   as amended from time to time.   2.25 Five Percent Owner. "Five Percent Owner" means any person who owns (or is   considered as owning within the meaning of section 318 of the Code, as modified by substituting   "5 percent" for "50 percent" in section 318(a)(2)(C) of the Code) more than five percent (5%) of   the outstanding stock of an Employer or any Affiliated Employer or stock possessing more than   five percent (5%) of the total combined voting power of all stock of an Employer or any   Affiliated Employer, or any person who owns more than five percent (5%) of the capital or   profits interest in any Affiliated Employer that is not a corporation.   DM_ US 14702698-23.064500.0013 -8-    

 

2.26 Fund. "Fund" means the trust fund established under the Trust Agreement and   funded by Employer and Employee contributions and from which benefits are to be paid.   2.27 Highly Compensated Employee. "Highly Compensated Employee" means an   employee who is a highly compensated active employee or highly compensated former   employee, within the meaning of section 414( q) of the Code and the regulations thereunder. A   Highly Compensated Employee includes any active employee who:   (a) was a Five Percent Owner at any time during the current Plan Year or the   preceding Plan Year, or   (b) for the preceding Plan Year, received Non-deferred Compensation from   the Employer in excess of $115,000 (for 2014), as adjusted pursuant to sections 414(q) and   415(d) of the Code, and was in the top-paid group of employees for such preceding Plan Year.   The top-paid group of employees is the group consisting of the top twenty   percent (20%) of employees when ranked on the basis of Non-deferred Compensation paid   during such preceding Plan Year, excluding the following employees:   (i)   (ii)   ( l7Yz) hours per week;   employees who have not completed six (6) months of service;   employees who normally work less than seventeen and one-half   (iii) employees who normally work during not more than six (6)   months during any Plan Year;   (iv) employees who have not attained age 21; and   (v) except to the extent provided in regulations, employees who are   included in a unit of employees covered by an agreement which the Secretary of Labor finds to   be a collective bargaining agreement between employee representatives and the Employer.   A former employee shall be a Highly Compensated Employee if (A) such   employee was a Highly Compensated Employee when such employee separated from service, or   (B) such employee was a Highly Compensated Employee at any time after attaining age fifty-five   (55). Whether or not a former employee is a Highly Compensated Employee shall be determined   in accordance with applicable regulations as in effect for that determination year.   2.28 Hour of Service. "Hour of Service" means:   (a) Each hour for which an employee is directly or indirectly paid, or entitled   to payment, by an Employer or Affiliated Employer for the performance of duties;   DM_US 14702698-23.064500.0013   -9-    

 

(b) Each hour for which no duties were performed but for which back pay,   irrespective of mitigation of damages, has either been awarded or agreed to by an Employer or   Affiliated Employer, which hours shall be credited for the Plan Year to which the award or   agreement pertains; and   (c) Each hour for which an employee is directly or indirectly paid, or entitled   to payment, by an Employer or Affiliated Employer for a period during which no duties are   performed, irrespective of whether the employment relationship has terminated, due to vacation,   holiday, illness, incapacity (including disability), layoff, jury duty, military duty or leave of   absence, which hours shall be credited for the Plan Year in which payment is made or due. An   hour for which an employee is directly or indirectly paid, or entitled to payment, on account of a   period during which no duties are performed shall not be credited to the employee if such   payment is made or due under a plan maintained solely for the purpose of complying with   applicable workers' compensation, unemployment compensation, or disability insurance laws;   and Hours of Service shall not be credited for a payment which solely reimburses an employee   for medical or medically related expenses incurred by the employee.   The same Hours of Service shall not be credited under (a) or (c) above, as   the case may be, and under (b) above. Nothing herein shall be construed as denying an employee   credit for an Hour of Service if credit is required by ERISA or other Federal law.   Notwithstanding anything in this Section 2.28 to the contrary, Hours of   Service shall be calculated and credited pursuant to section 2530.200b-2 of the Department of   Labor regulations which are incorporated herein by reference.   2.29 Key Employee. "Key Employee" means, for any Plan Year, any employee or   former employee of an Employer or an Affiliated Employer or beneficiary of such employee   who, at any time during such Plan Year is:   (a) an officer of an Employer or an Affiliated Employer having annual   Non-deferred Compensation greater than $170,000 (for 2014), as adjusted annually by the   Commissioner of Internal Revenue; provided that no more than fifty (50) employees shall be   treated as officers for such purpose;   (b) a Five Percent Owner within the meaning of sections 416(i)( I )(A)(ii) and   (B)(i) of the Code and the regulations thereunder; or   (c) a One Percent Owner having aggregate annual Non-deferred   Compensation of more than $150,000, within the meaning of sections 416(i)(l)(A)(iii) and   (B)(ii) of the Code and the regulations thereunder.   2.30 Leased Employee. "Leased Employee" means any person, other than an   employee of an Employer or Affiliated Employer, who pursuant to an agreement between an   Employer or Affiliated Employer and any other person ("leasing organization") has performed   DM_US 14702698·23.064500.0013   -10-    

 

services for an Employer or Affiliated Employer on a substantially full-time basis for a period of   at least one year and such services are performed under the primary direction or control of the   Employer or Affiliated Employer. A Leased Employee shall be considered an employee of an   Employer or an Affiliated Employer to the extent required by ERISA and/or the Code.   2.31 Named Fiduciary. "Named Fiduciary" means the Committee and the Trustee,   but only with respect to the specific responsibilities of each for the administration of the Plan and   Fund. The fiduciary responsibility of the Committee shall be as set forth in Articles 9 and 10.   The fiduciary responsibility of the Trustee shall be as set forth in the Trust Agreement.   2.32 Navient. "Navient" means Navient Corporation.   2.33 Navient Common Stock. "Navient Common Stock" means common stock of   Navient.   2.34 Navient Stock Fund. "Navient Stock Fund" means the portion of the Navient   Plan fund invested in Navient Common Stock.   2.35 Navient Plan. "Navient Plan" means the Navient 40 I (k) Savings Plan as in effect   on April 30, 2014.   2.36 Non-deferred Compensation. "Non-deferred Compensation" includes all of the   following:   (a) The employee's wages, salaries, fees for professional services, and other   amounts received (without regard to whether or not an amount is paid in cash) for personal   services actually rendered in the course of employment with the Employer to the extent that the   amounts are includible in gross income (including, but not limited to, commissions paid to   salesmen, compensation for services on the basis of a percentage of profits, commissions on   insurance premiums, tips, bonuses, fringe benefits, and reimbursements or other expense   allowances under a non-accountable plan (as described in section 1.62-2(c) of the Treasury   Regulations).   (b) In the case of an employee who is an employee within the meaning of   section 401(c)(l) of the Code and the regulations thereunder, the employee's earned income (as   defined in section 40l(c)(2) of the Code and the regulations thereunder) .   (c) Amounts described in sections 104(a)(3), 105(a), and 105(h) of the Code,   but only to the extent that these amounts are includible in the gross income of the employee.   (d) Amounts paid or reimbursed by the Employer for moving expenses   incurred by an employee, but only to the extent that, at the time of the payment, it is reasonable   to believe that these amounts are not deductible by the Employer under section 217 of the Code.   DM. US 14702698·23.064500.0013   -11-    

 

(e) The value of a non-qualified stock option granted to an employee by the   Employer, but only to the extent that the value of the option is includible in the gross income of   the employee for the taxable year in which granted.   (f) The amount includible in the gross income of an employee upon making   the election described in section 83(b) of the Code.   (g) The amount of any elective deferral (as defined in section 402(g)(3) of the   Code), and any amount which is contributed or deferred by the Employer at the election of the   employee and which is not includible in the gross income of the employee by reason of section   125, l32(f)(4), or 457 of the Code.   (h) Amounts that are includible in the gross income of an employee under the   rules of section 409A or 457(f)( I )(A) of the Code or because the amounts are constructively   received by the employee.   (i) Any differential wage payment (as defined in section 340l(h)(2) of the   Code) made by the Employer.   The following items are not included in the definition of compensation:   (i) Except to the extent required to be included in the definition of   compensation by section 415(c)(3)(0) of the Code, contributions made by the Employer to a plan   of deferred compensation (including a simplified employee pension described in section 408(k)   of the Code or a simple retirement account described in section 408(p) of the Code, and whether   or not qualified) to the extent that, before the application of the section 415 limitations to that   plan, the contributions are not includible in the gross income of the employee for the taxable year   in which contributed. Additionally, any distributions from a plan of deferred compensation   (whether or not qualified) are not considered as compensation for purposes of section 415 of the   Code, regardless of whether such amounts are includible in the gross income of the employee   when distributed. However, any amounts received by an employee pursuant to an unfunded non   qualified plan are permitted to be considered as compensation for section 415 purposes in the   year the amounts are actually received, but only to the extent such amounts are includible in the   gross income of the employee.   (ii) Amounts realized from the exercise of a non-qualified stock   option, or when restricted stock (or other property) held by an employee either becomes freely   transferable or is no longer subject to a substantial risk of forfeiture (see section 83 of the Code   and the regulations thereunder).   (iii) Amounts realized from the sale, exchange or other disposition of   stock acquired under a statutory stock option (as defined in section 1.421-l(b) of the Treasury   Regulations).   DM_US 14702698-23.064500.0013   -12-    

 

(iv) Except to the extent required to be included in the definition of   compensation by section 415(c)(3)(D) of the Code, other amounts which receive special tax   benefits, such as premiums for group-term life insurance (but only to the extent that the   premiums are not includible in the gross income of the employee and are not salary reduction   amounts that are described in section I 25 of the Code), or other items of remuneration that are   similar to any of the items listed in paragraphs (i) through this (iv).   2.37 Non-Key Employee. "Non-Key Employee" means any employee or former   employee of an Employer or an Affiliated Employer or beneficiary of such employee who is not a   Key Employee, within the meaning of section 416(i)(2) of the Code and the regulations   thereunder.   2.38 Normal Retirement Age. "Normal Retirement Age" means age sixty-five (65).   2.39 One Percent Owner. "One Percent Owner" means any person who would be a   Five Percent Owner if "one percent (l%)" were substituted for "five percent (5%)" each place it   appears.   2.40 Participant. "Participant" means any Employee who has satisfied the eligibility   requirements for the Plan as provided under Article 3 and who (a) has elected to participate in the   Plan by enrolling in the Plan as described in Section 3.02(a), and/or {b) who has received an   allocation of Employer Discretionary Profit-Sharing Contributions, Employer Core   Contributions, or Service Contract Act Contributions, as applicable. In addition, each individual   described in Section 1.02(b) or 1.02(c) shall be treated as a Participant who had a severance of   employment or termination of employment with a deferred vested Employee Account.   Notwithstanding the foregoing, an individual described in Section 1.02(b) or 1.02(c) who   becomes an Employee after April 30, 2014 shall cease to be treated as having a severance of   employment and termination of employment for purposes of taking a distribution of his   Employee Account under the Plan.   2.41 Pension Plan. "Pension Plan" means any defined benefit plan or any defined   contribution plan established by an Employer or an Affiliated Employer and qualified under   section 401 of the Code.   2.42 Period of Service. "Period of Service" means the period that begins on an   employee' s Employment Commencement Date, or Reemployment Commencement Date, with an   Employer or Affiliated Employer and ends on his Severance from Service Date, and includes the   employee's total number of years and months of service, crediting each completed and partial   month as a full month. In the event an employee has a Severance from Service Date followed by   a Reemployment Commencement Date within twelve ( 12) months of such Severance from   Service Date, the Period of Severance shall be treated as a Period of Service. In addition, if an   employee is on an Authorized Leave of Absence and subsequently experiences a Severance from   Service Date, but later has a Reemployment Commencement Date within twelve ( 12) months of   the day he was first absent from employment because of the Authorized Leave of Absence, then   DM_US 14702698·23.064500.0013   -13-    

 

the period from the Severance from Service Date until the Reemployment Commencement Date   shall be treated as a Period of Service.   2.43 Period of Severance. "Period of Severance" shall be the period beginning on the   Severance from Service Date and ending on the employee's next Reemployment Commencement   Date.   2.44 Permissive Aggregation Group. "Permissive Aggregation Group" means a   Required Aggregation Group that also includes a Pension Plan of an Employer or an Affiliated   Employer which, although not required to be included in the Required Aggregation Group, is   treated by an Employer or an Affiliated Employer as being part of such Required Aggregation   Group, provided that such Required Aggregation Group would continue to meet the requirements   of sections 40l(a)(4) and 4IO(b) of the Code with such Pension Plan being taken into account.   2.45 Plan. "Plan" means this Sallie Mae 40 I (k) Savings Plan and all authorized   amendments, except that, prior to November 1, 1997, Plan shall mean the Student Loan   Marketing Association Employees' Thrift and Savings Plan and all authorized amendments.   2.46 Plan Administrator. "Plan Administrator" means the Committee.   2.47 Plan Year. "Plan Year" means the twelve (12) month period beginning on   January 1 and ending on December 31.   2.48 Qualified Beneficiary. "Qualified Beneficiary" means a Participant's or former   Participant's surviving spouse, or former spouse who is the alternate payee under a qualified   domestic relations order, as defined in section 414(p) of the Code, or, effective January 1, 2010,   non-spouse designated beneficiary (as defined in section 401(a)(9)(E) of the Code).   2.49 Qualified Non-Elective Contribution. "Qualified Non-Elective Contribution"   means a previous contribution by an Employer that was made to enable the Plan to meet the   nondiscrimination tests described in sections 40l(k)(3) , 40l(k)(l2), 40l(m)(2), or 40l(m)(ll) of   the Code.   2.50 Reemployment Commencement Date. "Reemployment Commencement Date"   means the date an employee first performs an Hour of Service for an Employer or Affiliated   Employer following a Period of Severance.   2.51 Required Aggregation Group. "Required Aggregation Group" means (a) each   Pension Plan of an Employer or an Affiliated Employer in which a Key Employee is a   Participant, and (b) each other Pension Plan of an Employer or an Affiliated Employer which   enables any Pension Plan described in the immediately preceding clause (a) to meet the   requirements of section 40 I (a)( 4) or 41 O(b) of the Code.   2.52 Rollover Contribution. "Rollover Contribution" means any rollover account or   rollover contribution as defined in section 402(c)(4), 403(a)(4) or 408(d)(3) of the Code.   DM_US 14702698-23.064500.0013 -14-    

 

2.53 Service Contract Act Contribution. "Service Contract Act Contribution" means   a contribution to the Plan by the Employer in accordance with Section 4.0I(g). Effective April   30, 2014, no Employer shall make a Service Contract Act Contribution to the Plan.   2.54 Severance from Service Date. "Severance from Service Date" means:   (a) the date on which an employee's employment is terminated for any reason,   other than an Authorized Leave of Absence; or   (b) in the case of an Authorized Leave of Absence, the earlier of (i) the first   anniversary of the first date of an Authorized Leave of Absence, or (ii) in the event an employee   fails to return to employment with an Employer or Affiliated Employer on or before the   expiration of an Authorized Leave of Absence, the date following the date on which an   Authorized Leave of Absence expires; or   (c) in the case of an absence from work which is due to the pregnancy of the   employee, the birth of a child of the employee, the adoption of a child by the employee, or the   caring for a child by the employee for a period beginning immediately following the birth or   adoption of the child, and which extends beyond the first anniversary of the first day of such   absence from work, the second anniversary of the first date on which the employee commenced   such absence from work.   2.55 SLM Common Stock. "SLM Common Stock" means common stock of the   Corporation.   2.56 SLM Stock Fund. "SLM Stock Fund" means the portion of the Fund invested in   SLM Common Stock as described in Section 5.03.   2.57 Top Heavy Group. "Top Heavy Group" means, with respect to any Plan Year,   an Aggregation Group if, as of the Determination Date with respect to such Plan Year, (a) the   sum of (i) the present value of the cumulative accrued benefits under all Pension Plans included   in such Aggregation Group, determined in accordance with section 416(g) of the Code and the   regulations thereunder, and (ii) the aggregate of the accounts of Key Employees under all defined   contribution plans included in such Aggregation Group, as determined in accordance with section   416(g) of the Code and the regulations thereunder, exceeds (b) sixty percent (60%) of a similar   sum determined for Key Employees and Non-Key Employees; provided, however, that if any   employee is a Non-Key Employee with respect to any Pension Plan for any Plan Year, but such   employee was a Key Employee with respect to such Pension Plan for any prior Plan Year, any   accrued benefit for such employee and any account of such employee shall not be taken into   account for purposes of the foregoing determination; and provided further, that if any employee   has not performed any service for any Employer or Affiliated Employer maintaining the Pension   Plan at any time during the one (I )-year period ending on the Determination Date, any accrued   benefit for such employees and any account of such employees shall not be taken into account.   For purposes of determining the present value of the cumulative accrued benefit for any   DM_US 14702698-23.064500.0013   -15-    

 

employee, or the amount of the account of any employee, such present value or amount shall be   increased by the aggregate distributions made with respect to such employee under the Pension   Plan during the one (I)-year period (or, in the event such distribution is made for a reason other   than severance from employment, death, or disabi1ity, during the five (5)-year period) ending on   the Determination Date. The preceding sentence shall also apply to distributions under a   terminated Pension Plan which if it had not been terminated would have been required to be   included in the Aggregation Group.   2.58 Top Heavy Plan. "Top Heavy Plan" means a plan included in a Top Heavy   Group, except that (a) a simple retirement account as described in section 408(p) of the Code is   not a Top Heavy Plan, and (b) a plan that consists solely of a cash or deferred arrangement which   meets the requirements of section 401(k)(l2) or 401(k)(l3) of the Code and matching   contributions with respect to which the requirements of section 40 I (m)(l1) or 401 (m)(l2) are   met is not a Top Heavy Plan, except that if such plan described in this paragraph (b) would be   treated as a Top Heavy Plan because it is a member of an Aggregation Group that is a Top Heavy   Group, contributions under the plan may be taken into account in determining whether any other   plan in the Aggregation Group meets the requirements of section 416(c)(2) of the Code.   2.59 Trust Agreement. "Trust Agreement" means the agreement, including all   authorized amendments, entered into by the Trustee and the Corporation pursuant to which the   Fund is established and maintained.   2.60 Trustee. "Trustee" means the individual or entity designated as Trustee under the   terms of the Trust Agreement, or any successor Trustee which is a party to the Trust Agreement.   2.61 Valuation Date. "Valuation Date" means any date that the New York Stock   Exchange is open for trading.   2.62 Vested Benefit. "Vested Benefit" means the portion of a Participant's Employee   Account that is non-forfeitable.   2.63 Year of Participation. "Year of Participation" means a twelve (12)-month   period beginning on the date an employee first becomes a Participant in the Plan. If a Participant   has a Severance from Service Date and does not receive a distribution of his Plan benefit, he   shall continue to be credited with Years of Participation as long as his Plan benefit remains in the   Plan. In the event a Participant has a Severance from Service Date, receives a distribution of his   Plan benefit, and subsequently has a Reemployment Commencement Date, his Years of   Participation upon his reemployment shall be calculated from his Reemployment   Commencement Date and shall not include Years of Participation credited before his   Reemployment Commencement Date.   2.64 Year of Vesting Service. "Year of Vesting Service" means a twelve (12) month   Period of Service, aggregating all Periods of Service, and crediting each completed and partial   DM_US 14702698-23.064500.0013   -16-    

 

month as a full month of service. Years of Vesting Service shall also include any years of   vesting service from a prior employer recognized by the Plan in effect prior to January I, 20 I 0.   . If an employee has a Period of Severance that exceeds twelve ( 12) months, his   prior Years of Vesting Service shall be used to determine his vesting percentage as of his   Reemployment Commencement Date only if (a) he was vested in any portion of his Employee   Account derived from Employer contributions, as of his Severance from Service Date, or (b) his   latest Period of Severance as of his Reemployment Commencement Date is either (i) less than   five (5) years, or (ii) a shorter period of time than his Period of Service, immediately before the   date such Period of Severance began.   With respect to employees re-employed on or after September 1, 2000, an   employee' s prior Years of Vesting Service shall be used to determine his Years of Vesting   Service as of his date of re-employment; provided that such prior Years of Vesting Service shall   not include any Years of Vesting Service previously disregarded by reason of a prior Period of   Severance.   Wherever used in this instrument, a masculine pronoun shall be deemed to include   the masculine and feminine gender, a singular word shall be deemed to include the singular and   plural and a plural word shall be deemed to include the singular and plural in all cases where the   context requires.   DM_US 14702698·23.064500.0013   -!7-    

 

3.01 Eligibility.   ARTICLE3   ELIGIBILITY & PARTICIPATION   (a) Emolovee Contributions. An Employee shall be eligible to elect to have   Employee Contributions made on his behalf beginning on any date coincident with or next   following the date the Employee is credited with a one ( l) month Period of Service with an   Employer; provided that such Employee is an Employee on such date and satisfies the   requirements of Section 3.02.   (b) Employer Matching Contributions. A Participant shall be eligible to   receive Employer Matching Contributions beginning with the first pay period coincident with or   next following the date the Participant completes a six (6) month Period of Service with an   Employer, provided that the Participant is an Employee on such date.   (c) Employer Core Contributions. An Employee shall be eligible to receive   Employer Core Contributions equal to one percent (1 %) of the Participant's Compensation on a   pay period basis once the Employee has completed a one ( 1) month Period of Service. .   (d) Service Contract Act Contributions. Effective September 1, 2009, any   Employee (i) who is eligible to elect to have Employee Contributions made on his behalf in   accordance with Section 3.01(a), and (ii) who is designated by the Corporation to be a   government contract employee, shall be eligible to receive Service Contract Act Contributions in   an amount necessary to meet the requirements of the Federal Service Contract Act. Effective   after April 30, 2014, no Participant shall be eligible to receive Service Contract Act   Contributions under the Plan.   3.02 Participation.   (a) General. To become a Participant, an Employee must enroll in the Plan   pursuant to procedures promulgated by the Committee, including making a salary reduction   election whereby the Employee elects to reduce his Compensation by an amount permitted under   Section 4.01 (a) and the Employer agrees to contribute such amount to the Plan on behalf of the   Employee.   An Employee who is eligible to become a Participant in the Plan, in   accordance with Section 3.0 l, will become a Participant as soon as administratively feasible after   the date he completes the enrollment procedures described above.   (b) Employer Discretionary Profit-Sharing Contributions and Employer Core   Contributions. An Employee who is eligible to become a Participant in the Plan, in accordance   with Section 3.01, will become a Participant without completing the enrollment procedures   described in Section 3.02(a) upon receiving an allocation of Employer Discretionary Profit-   DM_US 14702698-23.064500.0011   - 18-    

 

Sharing Contributions in accordance with Section 4.0l(c) hereof or an Employer Core   Contribution in accordance with Section 4.0l(d) hereof.   (c) Service Contract Act Contributions. An Employee who is eligible to   become a Participant in the Plan, in accordance with Section 3.0 I , will become a Participant   without completing the enrollment procedures described above upon receiving an allocation of   Service Contract Act Contributions in accordance with Section 4.01 (g) hereof.   3.03 Re-employment of Former Participant or Former Employee and Change in   Employment Status.   (a) Change in Employment Status: Eligibility for Employee Contributions.   Effective January 1, 2010, if an employee or a former employee who has completed a   one (I)-month Period of Service, but who was not an Employee on the date coinciding with or   next following the date on which the employee completed such service requirement, becomes or   again becomes an Employee on or after January 1, 2010, then such Employee shall be eligible to   become a Participant and have Employee Contributions made on his behalf as of the first day he   becomes or again becomes an Employee; provided that he completes the enrollment process to   become a Participant in the Plan, in the manner described in Section 3.02. In the case of such a   Participant, his Employer will commence making Employee Contributions on his behalf as soon   as administratively feasible following receipt of the Participant' s salary reduction authorization.   (b) Change in Employment Status: Eligibility for Employer Matching   Contributions. Effective January 1, 2010, if an employee or a former employee who has   completed a twelve (12)-month Period of Service (and, effective January I, 2013, a six (6)-month   Period of Service), but who was not an Employee on the date coinciding with or next following   the date on which the employee completed such service requirement, becomes or again becomes   an Employee on or after January 1, 20 10, then such Employee shall be eligible to receive   Employer Matching Contributions as of the first day he becomes or again becomes an Employee;   provided that he completes the enrollment process to become a Participant in the Plan, in the   manner described in Section 3.02.   (c) Re-employment of Former Participant: Eligibility for Employee   Contributions. Effective January 1, 2010, if a former Participant who terminated employment   again becomes an Employee on or after January I , 2010, then such Employee shall be eligible to   become a Participant and have Employee Contributions made on his behalf as of the first day he   again becomes an Employee; provided that he completes the enrollment process to become a   Participant in Plan, in the manner described in Section 3.02. In the case of such a Participant, the   Employer will commence making Employee Contributions on his behalf as soon as   administratively feasible following receipt of the Participant's salary reduction authorization.   DM_US 14702698·23.064500.0013 ~ J9-    

 

(d) Re-employment of Former Participant: Eligibility for Matching   Contributions. Effective January I, 2010, if a former Participant who terminated employment   and had completed a twelve (12)-month Period of Service (or, effective January l, 2013, a six   (6)-month Period of Service) again becomes an Employee on or after January 1, 2010, then such   Employee shall be eligible to receive Employer Matching Contributions as of the first day he   again becomes an Employee~ provided that he completes the enrollment process to become a   Participant in the Plan, in the manner described in Section 3.02.   (e) Effective January I, 2010, with respect to Employees re-employed on or   after January I, 20 10, an Employee 's prior Period of Service shall be used to determine his   Period of Service as of his date of re-employment; provided that such Period of Service shalJ not   include any Period of Service previously disregarded by reason of a prior Period of Severance.   (f) A former Participant or former Employee who has a Period of Severance,   and whose prior Period of Service is not reinstated as described above, must meet the eligibility   requirements of Section 3.0 I before becoming a Participant in the Plan.   Notwithstanding the foregoing provisions of this Section 3.03, the terms of the Plan in   effect prior to January I , 2010 shall determine an individual's eligibility for benefits under the   Plan prior to January 1, 2010.   3.04 Transfer of Participant to Another Employer. A Participant who transfers   from one Employer to another Employer will continue to be a Participant in the Plan.   3.05 Transfer of Participant to an Affiliated Employer. A Participant who transfers   from an Employer to Upromise, Inc. or Asset Performance Group, LLC on or after July I , 2007   shaH remain a Participant in the Plan upon such transfer, and shall continue to be a Participant in   the Plan until such Participant terminates employment or is reclassified to an ineligible   classification set forth in Sections 2.15(a)-(e).   3.06 Transfer of Participant from Affiliated Employer. A Participant who transfers   to an Employer from an Affiliated Employer shall receive credit under the Plan for service with   such Affiliated Employer as if the Participant' s service was for the Employer.   DM_US 14702698-23.064500.0013   -20-    

 

ARTICLE 4   CONTRIBUTIONS   4.01 Employer Contributions.   (a) Employee Contributions. For each Plan Year, the Employer shall   contribute to the Plan on behalf of each Participant an amount equal to a whole percentage up to   seventy-five percent (75%) of a Participant's Compensation, pursuant to the salary reduction   authorization of the Participant; provided, however, that the aggregate amount of Employee   Contributions contributed to the Plan and to all other plans, contracts and arrangements   maintained by the Employer on behalf of any Participant for any calendar year shall not exceed   the dollar limit contained in sections 402(g)(5) and 415(d) of the Code in effect for such calendar   year, except to the extent permitted under section 414(v) of the Code. The Employer will begin   contributing Employee Contributions to the Plan commencing as soon as administratively   feasible following receipt of the Participant's salary reduction authorization. All Employee   Contributions will be credited to the Participant's Employee Contribution sub-account. The   Participant will at all times be fully vested in his Employee Contribution sub-account.   (b) Employer Matching Contributions. The Employer wiH contribute to the   Plan for each Participant e1igible to receive Employer Matching Contributions (on a pay period   basis) an amount equal to one hundred percent (100%) of the Participant's Employee   Contributions that do not exceed three percent (3%) of Compensation, plus fifty percent (50%) of   the Participant's Employee Contributions that exceed three percent (3%) of Compensation but   that do not exceed five percent (5%) of Compensation. Employer Matching Contributions are   intended to satisfy the safe harbor nondiscrimination requirements of section 401 (k)( 12) of the   Code and shall be one hundred percent ( 100%) vested when made. In compliance therewith, the   Employer shaH provide each eligible Employee with notice of the Employee's rights and   obligations under the Plan (which notice may be provided through electronic media), within a   reasonable period of time before the beginning of each Plan Year (or, in the Plan Year an   Employee first becomes eJigible, within a reasonable period before becoming eligible), in   accordance with the requirements of section 40l(k)(l2) of the Code (and the regulations and   other guidance issued thereunder). Notwithstanding anything in the Plan to the contrary,   effective January 1, 2009, no true-up Employer Matching Contributions may be made to a   Participant who is eligible to receive Employer Matching Contribulions in accordance with this   Section 4.0l(b).   (c) Employer Discretionary Profit-Sharing Contributions. From time to time,   the Employer may make an Employer Discretionary Profit-Sharing Contribution to the Fund. All   allocations of Employer Discretionary Profit-Sharing Contributions determined above shall be   credited to the Employee's Employer Discretionary Profit-Sharing Contribution sub-account,   which sub-account shall at all times be fully vested.   (d) Employer Core Contributions. The Employer shall make Employer Core   Contributions in accordance with and on behalf of each eligible Employee described in Section   DM_US 14702698-23.064500.0013   -21-    

 

3.0l(c) hereof, which Employer Core Contributions shall become one hundred percent (100%)   vested upon a Participant' s completion of one (I) Year of Vesting Service.   (e) Other Employer Contributions. The Employer may also make additional   contributions to the Plan to correct any errors; provided that such additional contributions are in   the best interest of the Participants.   (f) Employee Catch-Up Contributions. Effective January I, 2002, all   Participants who are eligible to make Employee Contributions under this Plan and who have   attained age fifty (50) before the close of the calendar year shall be eligible to make catch-up   contributions in accordance with, and subject to the limitations of, section 414(v) of the Code.   Such catch-up contributions shall not be taken into account for purposes of the Plan   implementing the required limitations of sections 402(g) and 415 of the Code. The Plan shall not   be treated as failing to satisfy the provisions of the Plan implementing the requirements of   section 401(k)(3), 40l(k)(ll), 401(k)(l2), 410(b), or 416 of the Code, as applicable, by reason of   the making of such catch-up contributions. Employer Matching Contributions shall be made   with respect to amounts contributed as catch-up contributions.   (g) Service Contract Act Contributions. Effective September 1, 2009, the   Employer may make a Service Contract Act Contribution to the Plan on behalf of each eligible   Employee described in Section 3.0l(d). All allocations of Service Contract Act Contributions   shall be credited to an Employee's Service Contract Act Contribution sub-account, which sub   account shall at all times be fully vested. Effective after April 30, 2014, no Employer shall make   a Service Contact Act Contribution to the Plan.   4.02 Rollover Contributions. An Employee may file an application with the Plan's   third party administrator to have the Trustee accept his Rollover Contribution, even if he has not   satisfied the eligibility requirements to become a Participant. Any such request shall state the   amount of the Rollover Contribution and include a statement that such contribution qualifies as a   Rollover Contribution. In addition, the Committee may require the Employee to submit such   other evidence and documentation as the Committee and the Trustee determine is necessary to   insure that the contribution qualifies as a Rollover Contribution.   If the Committee and the Trustee accept the Rollover Contribution, the   Employee's Rollover Contribution shall be credited to the Employee's Rollover Contribution   sub-account. The Employee shall elect to direct the investment of his Rollover Contribution   among the investment alternatives as are then currently available. The Employee shall at all   times be fully vested in his Rollover Contribution sub-account.   In addition to distributions from a qualified plan described in section 40l(a) or   403(a) of the Code that are otherwise includible in gross income or a "conduit IRA" containing   those assets , the Plan will accept Rollover Contributions (including direct Rollover Contributions   in accordance with section 40l(a)(31) of the Code), subject to the Committee' s determination   that such amounts meet the requirements for Rollover Contributions, of (1) distributions from an   DM_US 14702698-23.064500.0013   -22-    

 

annuity contract described in section 403(b) of the Code that are otherwise includible in gross   income, (2) distributions from an eligible plan under section 457(b) of the Code which is   maintained by a state, political subdivision of a state, or any agency or instrumentality of a state   or political subdivision of a state, that are otherwise includible in gross income and   (3) distributions from an individual retirement account or annuity described in section 408(a) or   (b) of the Code that are otherwise includible in gross income. The Plan will not accept as   Rollover Contributions amounts consisting of after-tax employee contributions.   4.03 Distribution of Employee Contributions that Exceed the Statutory   Limitation. If any amount constituting "excess deferrals", within the meaning of section 402(g)   of the Code, is required to be included in the gross income of a Participant under section   402(g)( 1) of the Code for any taxable year of the Participant, the Participant shall notify the   Committee of such excess deferrals by March 1 following the close of the taxable year with   respect to which the excess deferrals were made, and the Committee shall direct the Trustee to   distribute, in accordance with section 402(g)(2) of the Code and the regulations thereunder, to the   Participant, not later than the next following April 15, the amount of excess deferrals allocated to   the Plan for such taxable year, including any income allocable thereto for the taxable year. No   Employer Matching Contributions shall be made with respect to such excess deferrals; or if   Employer Matching Contributions have been made with respect to such excess deferrals, they   shall be forfeited. In all events, the income attributable to excess deferrals will be determined in   accordance with section 402(g) of the Code and the regulations issued thereunder.   4.04 Change of Contribution Rate and Suspension of Contributions. A Participant   may elect to change the percentage rate of salary reduction specified in his salary reduction   authorization or to suspend his Employee Contributions in the manner prescribed by the   Committee. Any such change will become effective as soon as administratively feasible.   A Participant may elect to suspend all of his Employee Contributions, which   results in the cancellation of the salary reduction authorization between the Participant and the   Employer, in accordance with procedures promulgated by the Committee. Any such suspension   will become effective as soon as administratively feasible. A Participant whose Employee   Contributions have been suspended as provided in this paragraph may reinstate such   contributions in accordance with procedures promulgated by the Committee, which shall be   effective as soon as administratively feasible.   See Section 6.04 for a discussion of the mandatory suspension of contributions   following a hardship withdrawal.   DM_US 14702698-23.064500.0013   -23·     

 

4.05 Payment to the Trustee. Employee Contributions shall be transmitted to the   Trustee as soon as administratively feasible, but in no event later than the fifteenth (15th)   business day of the month fol1owing the month in which the Employee Contributions would   otherwise have been payable to the Participant in cash. Employer Matching Contributions shal1   be transmitted to the Trustee no later than the date prescribed by law for the filing of the   Corporation's Federal tax return for the year for which the contribution is made, including   extensions of such time granted by the Internal Revenue Service. Employer Discretionary   Profit-Sharing Contributions and Service Contract Act Contributions, if made for a particular   year, shall be transmitted to the Trustee no later than December 31 of the year after the year for   which the contribution is made. Notwithstanding the foregoing, in no event shall Employee   Contributions or Employer Matching Contributions be contributed to the Fund (i) before the   Participant has made a salary reduction election pursuant to Sections 3.02 and 4.0 I (a), or (ii)   before the earlier of (A) the Participant's performance of services that relate to the Compensation   that, but for the Participant's salary reduction election, would have been paid to the Participant or   (B) the date the Compensation is made currently available to the Participant.   4.06 Safe Harbor Requirements. The Plan is intended to satisfy the safe harbor   requirements in accordance with section 401(k)(l2) of the Code, and as such is not subject to the   nondiscrimination testing under section 401 (k)(3) of the Code.   4.07 Maximum Benefit and Contribution Limitations.   (a) In accordance with the requirements of section 415 of the Code and the   final regulations issued on April 5, 2007 thereunder (which are hereby incorporated by   reference), in no event shall the contributions made to a Participant's Employee Account for any   Plan Year exceed the amount permitted under section 415 of the Code. As of January 1 of each   calendar year, the dollar limitation under section 415(c)(l)(A) of the Code, as adjusted pursuant   to section 415(d) of the Code, shall become effective under the Plan.   (b) For the purposes of section 415 of the Code and this Section 4.07,   compensation means wages as reported in Box I on Form W-2, or in such other box or on such   other form as may be designated for purposes of withholding tax by the Federal government.   Compensation shall also include elective deferrals, as defined in section 402(g) of the Code, and   amounts that are excluded from compensation under section 125 or 457 of the Code. Effective   January 1, 2008, the definition of compensation for purposes of applying the limitations under   section 415 of the Code shall comply with section l.415(c)-2(d)(4) of the Treasury Regulations   and shall be subject to the following:   (i) Compensation for a limitation year shall also include the following   amounts if paid by the later of two and one-half (2Yz) months after the Participant's severance   from employment or the end of the limitation year that includes the date of the Participant's   severance from employment: payments of regular compensation for services during the   Participant's regular working hours, or compensation for services outside the Participant's   regular working hours (such as overtime or shift deferential), commissions, bonuses, or other   DM_ US 14 702698-23.064500.0013   -24-    

 

similar payments; provided that, absent a severance from employment, the payments would have   been made to the Participant while the Participant continued employment with the Corporation or   an Affiliated Employer.   (ii) Any payment not described in Section 4.07(b)(i) above will not be   included in compensation if paid after the Participant's severance from employment, even if paid   by the later of two and one-half (2Y2) months after the date of severance from employment or the   end of the limitation year that includes the date of the severance from employment; provided,   however, that compensation shall include amounts paid by the Corporation or an Affiliated   Employer to an individual who does not currently perform services for the Corporation or an   Affiliated Employer by reason of qualified military service (within the meaning of section   414(u)(5) of the Code) to the extent such amounts do not exceed the amounts the individual   would have received if the individual had continued to perform services for the Corporation or   Affiliated Employer rather than entering qualified military service.   (iii) Compensation shall not include amounts in excess of the   applicable dollar limit under section 401(a)(l7) of the Code, as adjusted by the Internal Revenue   Service for increases in the cost of living determined in accordance with section 40 I (a)(l7)(B) of   the Code and the regulations and other guidance issued thereunder.   (iv) Compensation shall include any differential wage payment (as   defined in section 3401(h)(2) of the Code) made by the Employer.   (c) The limitation year, as defined in section 415 of the Code, for the Plan   shall be the Plan Year. If for any Plan Year the limitation of this Section 4.07 shall be exceeded,   then the Plan shall correct such excess in accordance with the Employee Plans Compliance   Resolution System ("EPCRS") as set forth in Revenue Procedure 2013-12 or any superseding   guidance.   (d) If a Participant also partiCipates in another tax-qualified defined   contribution plan maintained by the Corporation or an Affiliated Employer (as modified by   application of section 415(h) of the Code), the various plans shall be considered a single defined   contribution plan and the otherwise applicable limitation on the contributions made to a   Participant's Employee Account for any Plan Year under this Plan shall be adjusted as follows:   (i) If the Participant previously participated in another tax-qualified   defined contribution plan maintained by the Corporation or an Affiliated Employer (as modified   by the application of section 415(h) of the Code) within the same limitation year prior to   becoming a Participant in the Plan, the otherwise applicable limitation on the contributions made   to a Participant's Employee Account for any Plan Year under this Plan for that limitation year   shall be reduced by the amount of annual additions (within the meaning of section 415(c)(2) of   the Code) allocated under any such other defined contribution plan for that limitation year; and   DM_US 14702698-23.064500.0013   -25-    

 

(ii) If, at any point during a limitation year, a Participant ceases being a   Participant in the Plan and becomes a participant in another tax-qualified defined contribution   plan maintained by the Corporation or an Affiliated Employer (as modified by the application of   section 415(h) of the Code) within the same limitation year, the otherwise applicable limitation   on annual additions (within the meaning of section 415(c)(2) of the Code) under any such other   defined contribution plan for that limitation year shall be reduced by the amount of the   contributions made to a Participant's Employee Account for any Plan Year allocated under the   Plan for that limitation year.   DM_US 14702698-23.064500.0013   -26-    

 

ARTICLES   INVESTMENT ELECTIONS AND ACCOUNTS OF PARTICIPANTS   5.01 Participant Investment Elections. Subject to Section 5.03, at such time and in   such manner as designated by the Committee, a Participant may elect to direct the investment of   his Employee Account balance among the investment alternatives provided for in accordance   with Section 5.02. In the event no investment election is received, a Participant's Employee   Account shall be invested in an investment fund as available from time to time, which has been   designated as a default investment fund by the Committee, and may constitute a qualified default   investment alternative within the meaning of section 404(c)(5) of ERISA.   5.02 Investment Alternatives. The Committee will direct the Trustee as to the   specific investment alternatives which may be available from time to time. Notwithstanding the   foregoing, and subject to Section 5.03, SLM Common Stock shall be one of the investment   alternatives. Each Participant shall inform the Trustee of his investment election and the Trustee   shall allocate his Employee Account accordingly.   5.03 SLM Stock Fund. All investments in SLM Common Stock shall be maintained   in the SLM Stock Fund. Each Employee described in Section l .02(a) may allocate contributions,   if any, to the SLM Stock Fund. Each individual described in Section l.02(b) and each individual   described in Section 1.02( c) shall be prohibited from increasing their holdings in the SLM Stock   Fund and may elect to liquidate their holdings in the SLM Stock Fund and invest the proceeds in   any other investment alternative offered under the Plan.   5.04 Allocation to Accounts. As of each Valuation Date, the Trustee shall determine   the fair market value of the Fund, as well as the fair market value of the Employee Account of   each Participant. The value of the Employee Account of each Participant as of a Valuation Date,   shall be equal to the value of such Account as of the last Valuation Date, plus or minus all   applicable adjustments, including the following:   (a) Allocation of Investment Earnings and Expenses. The Participant's   Employee Account shall be credited with the amount of investment income, any realized or   unrealized capital gains or losses and any expenses since the last Valuation Date, in accordance   with a policy promulgated by the Committee.   (b) Allocation of Employer Contributions. The Employee Contribution   sub-account, Employer Matching Contribution sub-account, Employer Discretionary   Profit-Sharing Contribution sub-account, Employer Core Contribution sub-account, and Service   Contract Act Contribution sub-account, if any, of each Participant shall be credited with any   Employee Contributions, Employer Matching Contributions, Employer Discretionary   Profit-Sharing Contributions, Employer Core Contributions, and Service Contract Act   Contributions respectively, which have been contributed thereto in accordance with Section 4.01   and allocated to the Participant's Employee Account. Employee Contributions, any Employer   Matching Contributions which are based on the Employee Contributions, Employer   DM_US 14702698·23 064500.0013   -27-    

 

Discretionary Profit-Sharing Contributions, Employer Core Contributions, and any Service   Contract Act Contributions shall be allocated to the Employee Account as of the Trustee's   receipt of such contributions. The Qualified Non-Elective Contribution sub-account contains any   Qualified Non-Elective Contributions that were previously contributed and allocated to the   Participant' s Employee Account.   (c) Allocation of Loan Repayments. The appropriate sub-accounts of the   Employee Account of each Participant shall be credited with all loan repayments, such   repayments being credited towards both principal and interest.   (d) Allocation of Withdrawals and Distributions. The appropriate   sub-accounts of the Employee Account of each Participant shall be charged with any withdrawals   or loans made pursuant to Article 6 and with any distributions made pursuant to Article 8 since   the last Valuation Date.   5.05 Determination of Account Balances Binding. In determining the value of the   Fund and Employee Accounts, the Trustee and the Committee shall exercise their best judgment,   and all such determinations of value in the absence of bad faith shall be binding upon all   Participants and their Beneficiaries.   5.06 Participation of Additional Employers. Subject to Section 14.12, in the event   that affiliated or subsidiary organizations become signatory hereto, the Trustee may invest all   funds without segregating assets between or among signatory Employers.   5.07 Voting Rights of SLM Common Stock. Each Participant and former Participant   who terminated employment or, in the event of his death, his Beneficiary shall have the right to   direct the Trustee as to the manner in which whole shares of SLM Common Stock allocated to   his Employee Account as of the record date are to be voted on each matter brought before an   annual or special shareholders' meeting. Before each such meeting of shareholders, the Trustee   shall cause to be furnished to each Participant, former Participant who terminated employment   and Beneficiary a copy of the proxy solicitation material, together with a form requesting   directions on how such shares of SLM Common Stock allocated to such Participant's account   shall be voted on each such matter. Upon timely receipt of such directions, the Trustee shall on   each such matter vote, as directed, the number of shares of SLM Common Stock allocated to   such Participant's Employee Account, and the Trustee shall have no discretion in such matter.   The Trustee shall establish procedures as are necessary to maintain the confidentiality from the   Employer of the directions of individuals. The Trustee shall vote allocated shares for which it   has not received direction and unallocated shares of SLM Common Stock in the same proportion   as directed shares are voted, and shall have no discretion in such matter.   DM_US 14702698·23.064500.0013   -28-    

 

ARTICLE 6   IN-SERVICE WITHDRAWALS AND LOANS   6.01 Withdrawals from Voluntary Contribution and Participant Contribution   Sub-Accounts. A Participant is entitled to make up to two (2) withdrawals each Plan Year, on   any business date, from his voluntary contribution sub-account and up to two (2) withdrawals   each Plan Year, on any business date, from his participant contribution sub-account; provided,   however, that after the withdrawal, his Vested Benefit equals or exceeds the amount of the   security for his loans, if any, under Section 6.05. The amount credited to his voluntary   contribution sub-account and participant contribution sub-account shall be determined on the   date of the withdrawal. Any amount withdrawn by a Participant under this Section 6.0 I shall be   deemed to have been first withdrawn from his voluntary contributions, then from his participant   contributions, then from the investment earnings on his voluntary contributions, and finally from   the investment earnings on his participant contributions. Withdrawals from the voluntary   contribution sub-account and the participant contribution sub-account may be in cash or in SLM   Common Stock. Withdrawals shall be made from the investment funds in which the sub-account   is invested in accordance with a policy promulgated by the Committee, except that a Participant   may not receive a distribution from the SLM Common Stock Fund, if he is restricted from   trading in the SLM Common Stock Fund at the time of the distribution. The Committee may   establish a minimum amount that may be withdrawn under this Section 6.01 , or under this   Section 6.01 and any other Section of Article 6, in the aggregate.   6.02 Withdrawals from Rollover Contribution Sub-Accounts. A Participant is   entitled to make up to two (2) withdrawals each Plan Year, on any business day, from his   Rollover Contribution sub-account; provided, however, that after the withdrawal his Vested   Benefit equals or exceeds the amount of the security for his loans, if any, under Section 6.05.   The number of withdrawals permitted under this Section 6.02 shall be decreased by the number   of any withdrawal from a Participant's voluntary contribution or participant contribution sub   accounts pursuant to Section 6.01, unless the withdrawal pursuant to this Section 6.02 is made on   the same date as the withdrawal pursuant to Section 6.0 1. The amount credited to his Rollover   Contribution sub-account shall be determined on the date of the withdrawal. Withdrawals from   the Rollover Contribution sub-account may be made only in cash. The Participant may make a   withdrawal from his Rollover Contribution sub-account provided that the Participant elects to   withdraw, or has already withdtawn, one hundred percent (100%) of the amounts credited to his   voluntary contribution and participant contribution sub-accounts. Withdrawals shall be made   from each investment fund in accordance with a policy promulgated by the Committee, except   that a Participant may not receive a distribution from the SLM Common Stock Fund if he is   restricted from trading in SLM Common Stock on the date of the distribution. The Committee   may establish a minimum amount that may be withdrawn under this Section 6.02, or under this   Section 6.02 and any other Section of Article 6 in the aggregate.   DM_us 14702698-23.0645oo.oon   -29-    

 

6.03 Withdrawals from Employer Matching Contribution Sub-Accounts,   Employer Discretionary Profit-Sharing Contribution Sub-Accounts, Employer Core   Contribution Sub-Accounts, and Service Contract Act Contribution Sub-Accounts. A   Participant who has completed five (5) Years of Participation in the Plan as of the date of a   withdrawal and who has elected to withdraw, or has already withdrawn, one hundred percent   ( 100%) of the amounts credited to his voluntary contribution, participant contribution, and   Rollover Contribution sub-accounts is entitled to make up to two (2) withdrawals (per sub   account type) each Plan Year, on any business day, of any part or all of the amount credited to   each of the following sub-accounts: his Employer Matching Contribution sub-account (with   respect to Employer Matching Contributions made prior to January 1, 2003 only) (referred to as   "Pre-2003 Employer Matching Contributions"), his Employer Discretionary Profit-Sharing   Contribution sub-account, his Employer Core Contribution sub-account and his Service Contract   Act Contribution sub-account, if applicable~ provided, however, that after the withdrawal his   Vested Benefit equals or exceeds the amount of the security for his loans, if any, under Section   6.05. The amount credited to his Pre-2003 Employer Matching Contribution sub-account, his   Employer Discretionary Profit-Sharing Contribution sub-account, his Employer Core   Contribution sub-account, and his Service Contract Act Contribution sub-account shall be   determined on the date of withdrawal. Withdrawals from the Pre-2003 Employer Matching   Contribution sub-account, the Employer Discretionary Profit-Sharing Contribution sub-account,   the Employer Core Contribution sub-account and the Service Contract Act Contribution   sub-account may be made only in cash. Withdrawals shall be made from the investment funds in   accordance with a policy promulgated by the Committee, except that a Participant may not   receive a distribution from the SLM Common Stock Fund, if he is restricted from trading in SLM   Common Stock on the date of distribution.   6.04 Hardship Withdrawals from Employee Contribution Sub-Accounts. In the   event of financial hardship, a Participant may apply to the Plan's third party administrator for the   distribution of part or all of the value of the vested portion of his Employee Account (excluding   amounts credited to his Employer Matching Contribution sub-account and earnings thereon as   well as earnings attributable to amounts credited to his Employee Contribution sub-account on or   after January 1, 1989) determined as of the date of his hardship withdrawal; provided, however,   that the Participant elects to withdraw, or has already withdrawn, one hundred percent (100%) of   the amount he is able to withdraw from his voluntary contribution, participant contribution,   Rollover Contribution, Pre-2003 Employer Matching Contribution, Employer Discretionary   Profit-Sharing Contribution, Employer Core Contribution, and Service Contract Act Contribution   sub-accounts, and provided that after the withdrawal his Vested Benefit equals or exceeds the   amount of the security for his loans, if any, under Section 6.05. In addition, a hardship   withdrawal will only be permitted if the Participant has applied for or received the maximum   amount of loans available pursuant to the terms of the Plan. In accordance with procedures   established by the Plan's third party administrator, a Participant's hardship withdrawal date is the   business day coincident with or immediately following the date the Plan's third party   administrator approves his application for the hardship withdrawal. Hardship withdrawals may   be made only in cash. Hardship withdrawals shall be made from the investment funds in   DM US 14702698-23.064500.001 3   -30-    

 

accordance with a policy promulgated by the Committee, except that no hardship distribution   may be made from the SLM Common Stock Fund if the Participant is restricted from trading in   SLM Common Stock at the time he requests the distribution.   A distribution will be on account of financial hardship if the distribution is made   both on account of an immediate and heavy financial need of the Participant and is necessary to   satisfy such financial need. A distribution from the Plan under this Section 6.04 may be made   only for the following types of financial hardships:   (a) expenses for (or necessary to obtain) medical care described in section   2l3(d) of the Code previously incurred by the Participant, his spouse or his dependents (as   defined in section 152 of the Code and without regard to sections 152(b)(l), 152(b)(2), and   152(d)(l)(B) of the Code), which expenses are not covered by insurance;   (b) costs directly related to the purchase of a principal residence for the   Participant, excluding mortgage payments;   (c) payment of tuition, related educational fees, and room and board expenses   for up to the next twelve months of post-secondary education for the Participant, his spouse,   children, or dependents (as defined in section 152 of the Code and without regard to sections   152(b )(I), 152(b)(2), and 152(d)(l )(B) of the Code);   (d) payments necessary to prevent the eviction of the Participant from his   principal residence or foreclosure on the mortgage on that residence; or   (e) funeral or burial expenses for the Participant's deceased parent, spouse,   children or dependents (as defined in section 152 of the Code and without regard to section   152(d)(l)(B) of the Code);   (f) expenses for the repair of damage to the Participant's principal residence   that would qualify for the casualty deduction under section 165 of the Code (determined without   regard to whether the loss exceeds ten percent (10%) of adjusted gross income); or   (g) other events that qualify as a financial hardship distribution as provided   for in revenue rulings, notices or other documents of general applicability published by the   Internal Revenue Service under section 401 (k) of the Code.   A distribution from the Plan for a financial hardship will not exceed the   amount required to relieve the financial hardship, taking into account the extent such hardship   may be satisfied from other resources that are reasonably available to the Participant. The   amount of an immediate and heavy financial need may include any amounts necessary to pay any   Federal, state, or local income taxes or penalties reasonably anticipated to result from the   distribution. Unless the Plan's third party administrator has actual knowledge to the contrary, a   distribution will be treated as necessary to satisfy a financial need if the Participant represents in   DM_US 14702698-23.064500.001 3   -31-    

 

writing or such other form as may be required by the Plan's third party administrator that his   financial hardship cannot reasonably be relieved:   (i) through reimbursement or compensation by insurance or otherwise;   (ii) by liquidation of the Participant's assets;   (iii) by cessation of Employee Contributions;   (iv) by other distributions or nontaxable loans from plans maintained   by his Employer or by any other employer, or by borrowing from commercial sources on   reasonable commercial terms in an amount sufficient to satisfy the need; or   (v) by cash dividends, if any, paid on the shares of SLM Common   Stock in the Participant's Employee Account and available for distribution.   A need cannot reasonably be relieved by one of the actions listed   immediately above if the effect would be to increase the amount of the need.   The Employee Contributions of a Participant who makes a hardship   withdrawal wiJI be suspended for the six (6) calendar-month period immediately following the   date of his hardship withdrawal. Upon the termination of the six (6) calendar-month period of   suspension, a Participant shall be eligible to re-elect to have Employee Contributions made on   his behalf in accordance with Section 3.0l(a).   6.05 Loans. The Committee will make loans available to all Participants who are   parties in interest, as defined in section 3(14) of ERISA, on a reasonably equivalent basis. Such   loans will be adequately secured, bear a reasonable rate of interest and be made in accordance   with the rules in the Plan Loan Program Procedures, which is incorporated herein by reference.   DM US 14702698-23.064500.0013   -32-    

 

ARTICLE7   VESTING   7.01 Vesting. The amounts, if any, credited to a Participant's voluntary contribution,   participant contribution, Employee Contribution, Employer Matching Contribution, Employer   Discretionary Profit-Sharing Contribution, Service Contract Act Contribution, Qualified   Non-Elective Contribution, and Rollover Contribution sub-accounts are nonforfeitable.   A Participant shall become one hundred percent (100%) vested in any amounts   credited to his Employer Core Contribution sub-account upon the Participant's completion of one   (I) Year of Vesting Service.   Notwithstanding the foregoing, a Participant shall become one hundred percent   ( 100%) vested in all amounts in the Participant's Employee Account upon the earlier of the   Participant reaching Normal Retirement Age or upon the Participant's Severance from Service   Date, when such severance is due to the Participant' s death or Disability. In addition, if a   Participant dies on or after January I, 2007 while performing qualified military service (as   defined in section 414(u)(5) of the Code), the Participant shall become one hundred percent   ( 100%) vested in all amounts in the Participant's Employee Account.   7.02 Re-employment of Former Participants. If a former Participant who terminated   employment chooses not to receive a distribution of his Vested Benefit following his Severance   from Service Date and who was not one hundred percent (I 00%) vested in his Employer   Matching Contribution sub-account is reemployed by an Employer and again becomes an   Employee, any amount forfeited at the date of prior termination shall be contributed to his   Employer Matching Contribution sub-account, effective as of the date of reemployment.   DM_US 14702698-23.064500.0013   -33-    

 

ARTICLES   DISTRIBUTIONS   8.01 Earliest Time for and Method of Distribution of Benefits.   (a) Except in the case of distributions under Article 6, a Participant' s Vested   Benefit may be distributed from the Plan no earlier than the Participant's termination of   employment, death, Disability, or upon his attainment of age fifty-nine and one-half (59Y2).   (b) A Participant's entire Plan vested account balance shall be distributable on   account of the Participant' s severance from employment, regardless of when the severance from   employment occurred. However, such a distribution shall be subject to the other provisions of   the Plan regarding distributions, other than any provisions that required a separation from service   before such amounts may be distributed.   Distributions shall be made in a lump sum, reduced by the outstanding balance of   any loan. The Participant or his Beneficiary may elect to have the Participant's Vested Benefit   paid (i) all in cash, (ii) all in SLM Common Stock or (iii) in a combination of cash and SLM   Common Stock. If the Participant or Beneficiary elects to receive SLM Common Stock,   fractional shares of SLM Common Stock will be paid in cash to the Participant or his   Beneficiary.   8.02 Time of Payment. Upon a Participant's termination of employment, Disability,   or death, the Participant (or his Beneficiary in the case of death) may request a distribution of   benefits and such distribution shall be made as soon as administratively feasible after the Trustee   receives such request for distribution; except as provided in Section 8.03, a distribution shall not   be made to a former Participant who terminated employment, without his consent, before he   attains his Normal Retirement Age, unless the distribution is made after the Plan terminates and   the Employer and/or Affiliated Employer do not maintain another defined contribution plan, as   defined in section 414(i) of the Code, other than an employee stock ownership plan, as defined in   section 4975(e)(7) of the Code. The amount of the distribution will be the Participant's Vested   Benefit as of the date of distribution.   If a Participant does not request to receive his Vested Benefit at his Severance   from Service Date, then the Participant's Employee Account will continue to be subject to   adjustments in accordance with Section 5.03.   8.03 Distribution of Small Benefits. Notwithstanding anything in Section 8.02 to the   contrary, if the Participant's vested Employee Account balance does not exceed $1 ,000, his   Employee Account balance shall be distributed to him after his Severance from Service Date   without his request. If the Participant's vested Employee Account balance exceeds $1 ,000, then   any mandatory distribution of his Employee Account balance before his Normal Retirement Age,   to the extent such mandatory distribution is an Eligible Rollover Distribution subject to section   40l(a)(31) of the Code, shall be automatically rolled over to an individual retirement account.   DM_US 14702698-23.064500.001J   -34-    

 

Effective for distributions made after December 31 , 2001 (except for purposes of   an automatic rollover to an individual retirement account, as described in the preceding   paragraph), the net value of the vested portion of a Participant's account balance shall be   determined without regard to that portion of the account that is attributable to rollover   contributions (and earnings allocable thereto) within the meaning of sections 402(c), 403(a)(4),   403(b)(8), 408(d)(3)(A)(ii) , and 457(e)(l6) of the Code.   8.04 Latest Time for Distribution. In no event may a distribution under this Article   to a Participant begin later than the sixtieth (60th) day after the latest of the close of the Plan   Year in which:   (a) occurs the date on which the Participant attains his Normal Retirement   Age;   (b) occurs the fifth (5th) anniversary of the date on which the Participant   commenced participation in the Plan; or   (c) the Participant terminates his service with an Employer or Affiliated   Employer and is not then reemployed by another Employer or Affiliated Employer.   Notwithstanding the foregoing or any other provision in the Plan, in accordance   with section 401 (a)(9) of the Code and regulations thereunder, including the minimum   distribution incidental benefit requirement of section 40l(a)(9)(G) of the Code and sections   1.40l(a)(9)-l through l.40l(a)(9)-9 of the Treasury Regulations, benefit payments shall be made   or commenced not later than April 1 of the calendar year following the later of (i) the calendar   year in which a Participant attains age seventy and one-half (?OY2 ), or (ii) the calendar year in   which the Participant retires; provided, however, that benefit payments to a Five Percent Owner   shall be made or commence to be made no later than April 1 of the calendar year following the   calendar year in which the Participant attains age seventy and one-half (?OY2). Plan benefits   made in accordance with this provision shaH be distributed over the life expectancy of the   Participant. The Participant' s life expectancy will be recalculated annually in accordance with   section 40l(a)(9)(D) of the Code. If minimum distributions have begun to a Participant pursuant   to this paragraph, upon his subsequent termination of employment, his Vested Benefit will be   paid to him under the rules in Sections 8.0 I and 8.02, but not less rapidly than is required by   section 40l(a)(9) of the Code. In the case of a Participant's death, the Participant's entire Vested   Benefit will be paid to his Beneficiary within five (5) years of the Participant's date of death.   Notwithstanding the preceding paragraph, if the amount of the payment required   to commence on the date determined under the above paragraph cannot be ascertained by such   date, a payment retroactive to such date shall be made no later than sixty (60) days after the   earliest date on which the amount of such payment can be ascertained.   DM_ US 14702698-23.064500.0013   -35-    

 

With respect to minimum required distributions under the Plan made on or after   January 1, 2003 for calendar years beginning on or after January 1, 2003, the Plan will apply the   minimum distribution requirements of section 40l(a)(9) of the Code in accordance with   Appendix B to the Plan and the requirements of section 40l(a)(9) of the Code and sections   1.40 l(a)(9)-l through 1.401 (a)(9)-9 of the Treasury Regulations.   Notwithstanding the foregoing provisions of Section 8.04, a Participant or   Beneficiary who would have been required to receive required minimum distributions for 2009   but for the enactment of section 40l(a)(9)(H) of the Code ("2009 RMDs"), and who would have   satisfied that requirement by receiving distributions that are (l) equal to the 2009 RMDs or   (2) one or more payments in a series of substantially equal distributions (that include the 2009   RMDs) made at least annually and expected to last for the life (or life expectancy) of the   Participant, the joint lives (or joint life expectancy) of the Participant and the Participant's   designated Beneficiary, or for a period of at least 10 years ("Extended 2009 RMDs"), will not   receive those distributions for 2009, unless the Participant or Beneficiary chooses to receive such   distributions. Participants and Beneficiaries described in the preceding sentence wiU be given   the opportunity to elect to receive the distributions described in the preceding sentence. In   addition, solely for purposes of applying the direct rollover provisions of the Plan, including but   not limited to Section 2.14, 2009 RMDs and Extended 2009 RMDs (both as defined above) will   be treated as Eligible Rollover Distributions.   8.05 Missing Participant or Beneficiary. Unclaimed benefits shall be canceled and   applied to reduce Employer contributions if the Committee has not been able to locate the payee   after making reasonable efforts to do so, in accordance with a procedure adopted by the   Committee. Upon the cancellation of unclaimed benefits, the Plan shall have no further liability   to pay the benefit. However, if the payee later submits a claim for his benefit, the canceled   benefit shall be reinstated, without any adjustment for interest or earnings, and the Employer   shall make an additional contribution to the Plan to fund the reinstated benefit. Notwithstanding   anything in this Section 8.05 to the contrary, in the event any portion of such an Employee   Account has been paid to the State pursuant to the State's escheat laws, to the extent permitted   under Federal law, the Employee Account will not be reinstated upon the payee's filing of a   claim, and the payee must look to the State for payment.   8.06 Election of Direct Rollover of a Vested Benefit. Notwithstanding any provision   of the Plan to the contrary, a Participant or Qualified Beneficiary may elect, at the time and in the   manner prescribed by the Committee, to have any portion of an Eligible Rollover Distribution   paid directly to an Eligible Retirement Plan specified by the Participant or Qualified Beneficiary   in a Direct Rollover.   8.07 Death of a Participant During Qualified Military Service. If a Participant dies   while performing qualified military service (as defined in section 414(u)(5) of the Code) on or   after January l, 2007, the Participant's Beneficiaries shall be entitled to any additional benefits   (other than benefit accruals) under the Plan as if the Participant had died during service with the   Employer.   DM_US 14702698-23.064500.0013   -36-    

 

ARTICLE9   PLAN ADMINISTRATION   9.01 Committee. The Plan shall be administered by the SLM Corporation Retirement   Committee, or such other committee as may be, appointed by, and serving at the pleasure of, the   Board of Directors from time to time.   9.02 Powers and Duties of the Committee. The Committee shall have the discretion   to determine all matters relating to eligibility and benefits under the Plan and shall have the   discretion to determine all matters relating to the interpretation and operation of the Plan.   Decisions of the Committee shall be binding unless arbitrary or capricious. In addition, the   Committee shall have the responsibilities and duties described in the Charter of the Committee,   as amended from time to time.   9.03 Delegation of Responsibilities. In accordance with the Charter of the   Committee, as amended from time to time, the Committee may delegate certain Plan   responsibilities to management of the Corporation.   DM_US 14702698-23.064500.0013   -37-    

 

ARTICLE 10   CONTROL AND MANAGEMENT OF ASSETS   10.01 In General.   (a) Trustee. All assets of the Plan shall be held by the Trustee pursuant to the   terms of the Trust Agreement not inconsistent herewith. The Trustee shall follow the policies   and guidelines of the Committee with respect to the choice of investment alternatives. Each   Participant or Beneficiary shall have the right to direct the Trustee with respect to the investment   of his Employee Account and the Trustee shall follow the investment directions of the Participant   or Beneficiary in accordance with section 404(c) of ERISA. In the event the Participant or   Beneficiary fails to provide an investment direction, the Trustee shall invest the Employee   Account in the default investment fund selected by the Committee, which may constitute a   qualified default investment alternative fund within the meaning of section 404( c )(5) of ERISA.   (b) Named Fiduciary for Investment. The Committee shall serve as the   Named Fiduciary and shall develop the overall policies and guidelines for the investment of Plan   assets, including the selection of the investment alternatives which are to be made available to   Participants.   DM_US 14702698-23.064500.0011   -38-    

 

ARTICLE 11   FIDUCIARY LIABILITY INSURANCE AND INDEMNIFICATION   11.01 Fiduciary Liability Insurance. The Plan may purchase insurance for its   fiduciaries or for itself to cover liability or losses occurring by reason of the act or omission of a   fiduciary, if such insurance permits recourse by the insurer against such a fiduciary who has   committed a breach of fiduciary duties. A fiduciary may purchase insurance to cover his own   liability for any act or omission. Each Employer may purchase insurance to cover potential   liability of one or more persons who serve in a fiduciary capacity with respect to the Plan.   Nothing in this Section 11.01 shall be construed as requiring the purchase of any insurance.   11.02 Indemnity. The Employers may, consistent with applicable law, indemnify the   members of the Board of Directors, and the members of the Committee from any liability, loss or   other financial consequence with respect to any act or omission relating to the Plan by means   other than the provision of fiduciary liability insurance; except that to the extent any such   liability, loss or consequence results from a person's gross negligence or willful misconduct,   such person shall not be so indemnified. The provisions of Section ll.Ol shall apply, to the   extent applicable, prior to the provisions of this Section 11.02.   DM_US 14702698·23.064500.0011   -39-    

 

ARTICLE 12   AMENDMENTS TO OR TERMINATION OF THE PLAN   12.01 Right of Corporation to Amend or Terminate the Plan. While it is the   intention of the Corporation to continue the Plan indefinitely, the Corporation reserves the right   to terminate its contributions or terminate the Plan in whole or in part at any time by an   instrument in writing pursuant to authority of a vote of the Board of Directors. The Corporation   reserves the right to amend the Plan pursuant to authority granted to the Corporation and may   delegate such authority. However, the Plan shall not be amended in such manner as would cause   or permit any part of the Fund to be diverted to purposes other than for the exclusive benefit of   Participants of the Plan and their Beneficiaries, nor in such manner as would cause or permit any   portion of such corpus to revert to, or become the property of, any Employer prior to the   satisfaction of all liabilities under the Plan with respect to such Participants or to increase the   duties or liabilities of the Trustee without its written consent. Unless otherwise required or   permitted by law, no amendment to the Plan shall decrease a Participant's account balance or   eliminate an optional form of distribution notwithstanding the preceding sentence. Furthermore,   no amendment to the Plan shall have the effect of decreasing a Participant's vested interest   determined without regard to such amendment as of the later of the date such amendment is   adopted, or the date it becomes effective. Notwithstanding any provision of the Plan to the   contrary, effective on or after August 9, 2006, no amendment shall decrease a Participant's or   former Participant's accrued benefit under the Plan as of the applicable amendment date, or   otherwise place greater restrictions or conditions on a Participant's or former Participant's right   to protected benefits under section 4ll(d)(6) of the Code, even if the amendment merely adds a   restriction or condition that is otherwise permitted under the vesting rules in sections 411 (a)(3)   through ( 11) of the Code.   12.02 Termination of Plan. In the event that the Plan is terminated or partially   terminated or in the event of a complete discontinuance of contributions, the right of all   Participants, or those Participants so affected in the case of a partial termination, to benefits   accrued under the Plan as of the date of such termination, partial termination or discontinuance of   contributions, shall be non-forfeitable; and after providing for the expenses of the Plan, the   remaining assets of the Plan shall be allocated by the Committee. Upon complete termination of   the Plan, the Committee shall liquidate the entire Fund as soon as administratively practical if the   Employers and Affiliated Employers do not maintain another defined contribution plan, as   defined in section 414(i) of the Code, other than an employee stock ownership plan, as defined in   section 4975(e)(7) of the Code.   12.03 Withdrawal of an Employer. Each Employer which adopts the Plan shall have   the right at any time to terminate the Plan as to its employees or to withdraw its share of assets   from the Fund while the Plan continues in effect for the employees of each other Employer. In   the event of such withdrawal or termination, such Employer shall deliver to the Corporation and   the Committee, at least thirty (30) days prior to the effective date of such termination or   withdrawal, a certified copy of the vote of its governing body authorizing such termination or   withdrawal. The Committee will advise the Trustee to segregate a portion of the Fund   DM_US 14702698-23.064500.001 3   -40-    

 

representing the interest of the Employees of such Employer in the Fund. The Trustee, as   directed by the Committee, shall transfer such assets to a fund exempt under section 501 of the   Code for purposes of providing benefits for such Employees under another plan, or if no such   fund exists, distribute such assets currently to the Employees of the withdrawing Employer.   12.04 Plan-to-Plan Transfer. Upon the sale of substantially all of the assets and   liabilities of an Employer, the Committee may, upon the written request of the purchaser of such   assets and liabilities, instruct the Trustee to segregate a portion of the Fund representing the   interest in the Fund of Employees who continue employment with such purchaser and to transfer   such portion of the Fund to the plan of such purchaser; provided, however, that such purchaser   represents to the Committee that the plan is qualified under section 40l(a) of the Code and that   the benefit of each Employee immediately after the transfer shaH be at least equal to the benefit   the Employee was entitled to immediately before the transfer.   DM_US 14702698-23.064500.0011   -4 1-    

 

ARTICLE 13   TOP HEAVY PROVISIONS   13.01 Top Heavy Plan Requirements. Notwithstanding any other provision of the   Plan, if for any Plan Year the Plan is determined to be a Top Heavy Plan, then the top heavy   minimum benefit requirement of section 416(c) of the Code, as set forth in Section 13.02, shall   apply.   13.02 Top Heavy Minimum Contribution Requirement. For any Plan Year with   respect to which the Plan is determined to be a Top Heavy Plan, with respect to each Employee   who is a Non-Key Employee for such Plan Year, the Top Heavy requirements shall be met by   providing, under the defined benefit plan sponsored by the Corporation and qualified under   section 40l(a) of the Code, the minimum accrued benefit derived from employer contributions   necessary to satisfy the benefit requirement of section 416( c) of the Code.   13.03 Top~Heavy Provisions.   (a) This Section 13.03 shall apply for purposes of determining whether the   plan is a Top-Heavy Plan under section 416(g) of the Code and whether the Plan satisfies the   minimum benefits requirements of section 416(c) of the Code.   (b) Minimum Benefits/Matching Contributions. Employer matching   contributions shall be taken into account for purposes of satisfying the minimum contribution   requirements of section 416(c)(2) of the Code, and the Plan. The preceding sentence shall apply   with respect to matching contributions under the Plan or, if the Plan provides that the minimum   contribution requirement shall be met in another plan, such other plan. Employer matching   contributions that are used to satisfy the minimum contribution requirements shall be treated as   matching contributions for purposes of the actual contribution percentage test and other   requirements of section 401 (m) of the Code.   DM_US 14702698-23.064500.0013   -42-    

 

ARTICLE 14   MISCELLANEOUS   14.01 Rights of Employees. Nothing herein contained shall be deemed to give any   employee the right to be retained in the employ of the Employer or to interfere with the right of   the Employer to discharge such employee at any time, nor shall it be deemed to give the   Employer the right to require the employee to remain in its employ, nor shall it interfere with the   employee' s right to terminate his employment at any time.   14.02 Notice of Address. Each person entitled to benefits under the Plan must inform   the Committee, in accordance with a procedure adopted by the Committee, of his post office   address and each change of post office address. Any communication, statement or notice   addressed to such person at such address shall be deemed sufficient for all purposes of the Plan,   and there shall be no obligation on the part of the Employer, the Committee or Trustee to search   for or to ascertain the location of such person.   14.03 Data. Each person entitled to benefits under the Plan must furnish to the   Committee such documents, evidence, or other information as the Committee considers   necessary or desirable for the purposes of administering the Plan or to protect the Plan. The   Committee shall be entitled to rely on representations made by employees, Participants and   Beneficiaries with respect to age, marital status and other personal facts, unless it knows said   representations are false.   14.04 Merger. This Plan shall not be merged into, or consolidated with, nor shall any   assets or liabilities be transferred to, any plan under circumstances resulting in a transfer of assets   or liabilities from this Plan to another plan, unless immediately after any such merger,   consolidation or transfer, each Participant would, if the Plan had then terminated, receive a   benefit immediately after the merger, consolidation or transfer which would be equal to or greater   than the benefit he would have been entitled to receive immediately before the merger,   consolidation or transfer, if the Plan had then terminated.   14.05 Fund to be for the Exclusive Benefit of Participants. The contributions of the   Employers to the Fund shall be for the exclusive purpose of providing benefits to the Participants   and their Beneficiaries and no part of the Fund shall revert to the Employers, except as follows:   (a) if a contribution is made to the Fund by an Employer under mistake of   fact, such contribution shall be returned within one ( 1) year after its payment; or   (b) if any part or alJ of a contribution is disallowed as a deduction under   section 404 of the Code with respect to an Employer, then to the extent of such disallowance it   may be returned to the Employer within one (I) year after the disallowance. Employer   contributions made to the Plan are conditioned on deductibility under section 404 of the Code.   Notwithstanding the prior sentence, at the election of the Employer, contributions that are not   deductible under section 404 of the Code solely because of section 404(a)(7) of the Code may be   DM_US 14702698-23.064500.0013   -43-    

 

maintained in the Plan, provided such contributions do not exceed the greater of (i) the amount of   contributions not in excess of six percent (6%) of compensation (within the meaning of section   404(a) of the Code and including any differential wage payment (as defined in section 340l(h)(2)   of the Code) made by the Employer) paid or accrued (during the taxable year for which the   contributions were made) to beneficiaries under the Plan, or (ii) the sum of Employer Matching   Contributions plus the amount of contributions described in section 402(g)(3)(A) of the Code.   14.06 Facility of Payment. If it shall be found that (a) a person entitled to receive any   payment under the Plan is physically or mentally incompetent to receive such payment and to   give a valid release thereof, and (b) another person or an institution is then maintaining or has   custody of such person, and no guardian, committee or other representative of the estate of such   person has been duly appointed by a court of competent jurisdiction, the payment may be made   to such other person or institution referred to in (b) above, and the release of such other person or   institution shall be a valid and complete discharge for the payment.   14.07 Restrictions on Alienation. Except with respect to the (a) creation, assignment,   or recognition of a right to a benefit payable with respect to a Participant pursuant to a qualified   domestic relations order (as defined in section 414(p) of the Code) and, (b) the creation,   assignment, or recognition of a right to a benefit payable to the Plan pursuant to section   40l(a)(l3)(C) of the Code, no benefit payable under the Plan to any person shall be subject to   any manner of anticipation, alienation, sale, transfer, assignment, pledge, encumbrance, or   charge, and any attempt to anticipate, alienate, sell, transfer, assign, pledge, encumber, or charge   the same shall be void; and no such benefit shall in any manner be liable for, or subject to, the   debts, contracts, liabilities, engagements, or torts of any person nor shall it be subject to   attachment or legal process for, or against, any person, and the same shall not be recognized   under the Plan. Distributions may be made to an alternate payee pursuant to a qualified domestic   relations order (as defined in section 414(p) of the Code) before the Participant attains the earliest   retirement date, as defined in section 414(p)(4)(B) of the Code, under the Plan.   14.08 Headings. The headings of the Plan are inserted for convenience and reference   only and shall have no effect upon the meaning of the provisions hereof.   14.09 Construction. The Plan shall be construed, regulated and administered under the   laws of the state of Delaware, except that if any such laws are superseded by any applicable   Federal law or statute, such Federal law or statute shall apply.   14.10 Exclusion and Severability. Each provision hereof shall be independent of each   other provision hereof and if any provision of the Plan proves to be, or is held by any court, or   tribunal, board or authority of competent jurisdiction to be void or invalid as to any Participant or   group of Participants, such provision shall be disregarded and shall be deemed to be null and   void and not part of the Plan. However, such invalidation of any provision shall not otherwise   impair or affect the Plan or any of the other provisions or terms hereof.   DM_ US 14 702698-23.064500.0013     

 

14.11 Special Rule Relating to Military Service. Notwithstanding any provision in   this Plan to the contrary, contributions, benefits and service credit with respect to qualified   military service will be provided in accordance with section 414(u) of the Code and the   mandatory provisions of the Heroes Earnings Assistance and Relief Tax Act of 2008.   14.12 Application of Forfeitures. Forfeitures arising under the Plan with respect to an   Employer's Participants shall be applied, at the discretion of that Employer, either to reduce that   Employer's contributions in such proportions as that Employer may direct or to pay   administrative expenses of the Plan. Non-vested amounts shall be forfeited from a Participant's   Employee Account upon the earlier of (a) the date the entire vested portion of the Participant' s   Employee Account is distributed and (b) the date the Participant incurs a five (5)-year Period of   Severance; provided that in the event such forfeiture occurs as of the date the entire vested   portion of the Participant's Employee Account is distributed, such previously forfeited amount   (without any adjustment for earnings) shall be reinstated on behalf of the Participant only if such   Participant becomes re-employed before he incurs a five (5)-year Period of Severance, and the   Participant repays back to the Plan the entire amount of the previous distribution before the   earlier of (i) five (5) years after the first date on which the Participant is subsequently reemployed   by the Employer, or (ii) the close of the first five (5)-year Period of Severance commencing after   the date of distribution.   14.13 Contractual Limitation Period. No action at Jaw or in equity shall be brought to   recover benefits under the Plan until the mandatory appeal rights described in the Plan have been   exercised and the Plan benefits requested in such appeal have been denied in whole or in part.   If any judicial proceeding is undertaken to appeal the denial of a claim, challenge   the amount of any benefit under the Plan or bring any other action under ERISA other than a   breach of fiduciary duty claim, any such judicial proceeding must be filed within the earlier date   of the following: (a) ninety (90) days after the final decision on any administrative claim for   benefits submitted to the Committee; or (b) within three (3) years after the date when the   Participant or Beneficiary submits their authorization to commence payment of the Plan benefits   at issue in the judicial proceeding.   The evidence presented in such a judicial proceeding will be strictly limited to the   evidence timely presented to the Committee (or its designee).   DM_US 14702698·23.064500.0013   -45-    

 

ARTICLE 15   SPECIAL PROVISIONS APPLICABLE TO CORPORATE TRANSACTIONS   15.01 Special Vesting Provisions. The following provisions shall apply in determining   a Participant's Vested Benefit.   (a) Former Employees of EFCI, Inc. Any Employee who becomes an   employee of Education First Marketing L.L.C., effective January l, 1997, shall be one hundred   percent ( 100%) vested in his Employee Account at all times, provided his immediately preceding   employer was EFCI, Inc. Notwithstanding the foregoing, amounts in any such Employee's   Employer Core Contribution sub-account shall become one hundred percent (100%) vested upon   the Employee's completion of one ( l) Year of Vesting Service.   (b) Employees of Kaludis Consulting Group. Inc. Any Employee of Kaludis   Consulting Group, Inc. whose Employment Commencement Date is prior to January 1, 1998,   shall be one hundred percent ( 100%) vested in his Employee Account at all times. However, if   an Employee described in the prior sentence incurs a Severance from Service Date and is   subsequently reemployed by the Employer, any benefit accrued on or after the Reemployment   Commencement Date shall not be subject to this special vesting provision, but shall be subject to   the general vesting provisions described in Article 7. Notwithstanding the foregoing, amounts in   any such Employee's Employer Core Contribution sub-account shall become one hundred   percent ( 100%) vested upon the Employee's completion of one ( l) Year of Vesting Service.   (c) Former Employees of USA Group. Individuals who were employed by   USA Group on July 31, 2000, and who became eligible to be Participants in the Plan on August   l, 2000 shall be one hundred percent ( 100%) vested in any Employer Matching Contributions at   all times.   (d) An individual described in Section 1.02(b) or 1.02( c) shall be one hundred   percent ( l 00%) vested in the portion of his Employer Matching Contribution and Employer Core   Contribution sub-accounts invested in the SLM Stock Fund as of April 30, 2014.   (e) Matching contributions made to the Sallie Mae Retirement Savings Plan   on behalf of a Participant prior to July I, 2004 and transferred to the Participant' s Employee   Account under this Plan on or as soon as practicable after January 1, 2010 shall become vested in   accordance with the following schedule:   Years of Vesting Service   Less than one   I year   2 years   3 years   DM_US 14702698-23.064500.0013   -46-   Percent Vested   0%   0%   50%   100%     

 

(f) Matching contributions made to the Pioneer Credit Recovery 40l(k)   Savings Plan that were transferred to the Sallie Mae Retirement Savings Plan on January I, 2005   and again transferred to the Participant's Employee Account under this Plan on or as soon as   practicable after January 1, 2010 shal1 become vested in accordance with the following schedule:   Years of Vesting Service   Less than one   1 year   2 years   3 years   4 years   5 years   15.02 USA Group Special Provisions.   Percent Vested   0%   20%   40%   60%   80%   IOO%   (a) EIP Account Provisions. The following provlSlons shaH apply to   individuals who were employed by USA Group on July 31, 2000, who were eligible to and   became Participants in the Plan on August 1, 2000, and who had "EIP Accounts" under the USA   Group Plan (as described in Supplement C to the USA Group Plan ("Supplement C"))   (hereinafter referred to as "USA Group/EIP Participants").   (i) Vesting. USA Group/EIP Participants shall be one hundred   percent (I 00%) vested in their EIP Accounts as of August 1, 2000.   (ii) In-Service Withdrawals. USA Group!EIP Participants shall be   permitted to take in-service withdrawals of the amounts credited to their EIP Accounts at any   time in the form of a single lump sum representing all or a portion of the amount credited to the   EIP Account in accordance with procedures established by the Committee.   (iii) Distributions. USA Group/EIP Participants shall be permitted to   take distributions of amounts credited to their EIP Accounts only in the form of a single lump   sum representing the entire amount credited to the EIP Account following their termination of   employment and in accordance with procedures established by the Committee.   15.03 Southwest Student Services Corporation Special Provisions. With respect to   any individual who is employed by Southwest Student Services Corporation on March 31 , 2005,   and who becomes a Participant in the Plan on April 1, 2005, such individual shall be one hundred   percent (I 00%) vested in his Southwest plan account transferred to the Plan.   DM_US 14702698·23.064500.001 ~     

 

ARTICLE 16   SIGNATURE   The Plan as herein amended and restated has hereby been approved and is adopted effective as of   the dates set forth herein this 30th day of April, 2014.   easley   Senior Vice President and   Chief Human Resources Officer   Dated: Apri~ 2014   DM_US 14702698-23.064500.0013   -48-    

 

APPENDIX A   SALLIE MAE 401(K) SAVINGS PLAN   PARTICIPATING EMPLOYERS   As of the date of this Plan restatement the following Employers participate in the Sallie Mae   401 (k) Savings Plan:   • Upromise, Inc.   • Sallie Mae Bank   • SMB Servicing Company, Inc.   DM_US 14702698·23.064500.0013   -49-    

 

APPENDIXB   ADDITIONAL PROVISIONS RELATED TO REQUIRED MINIMUM DISTRIBUTIONS   Effective for calendar years on and after January 1, 2003, the minimum required distributions   made to Participants pursuant to Section 8.04 shall be made in accordance with the following   provisions:   B.l The Vested Benefit of each Participant who is a five percent (5%) owner (as   defined in section 416(i) of the Code, but without regard to the top-heavy status of the Plan) shall   be distributed or shall commence to be distributed, in accordance with section 40 l (a)(9) of the   Code and the regulations issued thereunder, no later than the April 1 following the close of the   calendar year in which the Participant attains age ?Olf2, regardless of whether his employment is   terminated as of such date. The Vested Benefit of each Participant who is not a five percent (5%)   owner shall be distributed or shall commence to be distributed, in accordance with section   40l(a)(9) of the Code and the regulations issued thereunder, no later than the Aprill following   the later of: (a) the calendar year in which the Participant attains age seventy and one-half (?Olf2),   or (b) the calendar year in which the Participant terminates employment. All distributions under   this Plan shall comply with the incidental death benefit requirements of section 401 (a)(9)(G) of   the Code and the regulations (including section l.40l(a)(9)-2 of the Treasury Regulations) and   other guidance issued thereunder.   B.2 The provisions of this Section 8.2 will apply for purposes of determining required   minimum distributions for calendar years beginning with the 2003 calendar year. The   requirements of this Section B.2 will take precedence over any inconsistent provisions of the   Plan. All distributions required under this Section will be determined and made in accordance   with the Treasury Regulations under section 40l(a)(9) of the Code.   (a) Time and Manner of Distribution. The Participant's entire interest will be   distributed, or begin to be distributed, to the Participant no later than the Participant's Required   Beginning Date. If the Participant dies before distributions begin, the Participant's entire interest   will be distributed, or begin to be distributed, no later than as follows:   (1) If the Participant's surviving spouse is the Participant's sole   Designated Beneficiary, then distribution of the Participant's Vested Benefit shall be made to the   surviving spouse pursuant to Section 8.04.   (2) If the Participant's surviving spouse is not the Participant's sole   Designated Beneficiary, then distribution of the Participant's Vested Benefit shall be made to the   Designated Beneficiary pursuant to Section 8.04.   (3) If there is no Designated Beneficiary as of the date of the   Participant' s death, the Participant's Vested Benefit will be distributed pursuant to Sections 2.04,   8.04 and 8.05.   DM_US 14702698-23.064500.0013   -50-    

 

(4) If the Participant's surv1vmg spouse is the Participant' s sole   Designated Beneficiary and the surviving spouse dies after the Participant but before   distributions to the surviving spouse begin, this Section B.2(a), other than Section B.2(a)( l ), will   apply as if the surviving spouse were the Participant.   For purposes of this Section B.2(a) and Section B.2(d), unless   Section B.2(a)(4) applies, distributions are considered to begin on the Participant's Required   Beginning Date. If Section B.2(a)(4) applies, distributions are considered to begin on the date   distributions are required to begin to the surviving spouse under Section B.2(a)( 1).   (b) Forms of Distribution. Unless the Participant's interest is distributed in a   single sum on or before the Required Beginning Date, as of the first Distribution Calendar Year   distributions will be made in accordance with Sections B.2(c) and B.2(d).   (c) Required Minimum Distributions During Participant's Lifetime. During   the Participant's lifetime, the minimum amount that will be distributed for each Distribution   Calendar Year is the lesser of:   (1) the quotient obtained by dividing the Participant's 40 l (a)(9)   Account Balance by the distribution period in the Uniform Lifetime Table set forth in section   1.40l(a)(9)-9 of the Treasury Regulations, using the Participant's age as of the Participant's   birthday in the Distribution Calendar Year~ or   (2) if the Participant's sole Designated Beneficiary for the Distribution   Calendar Year is the Participant's spouse, the quotient obtained by dividing the Participant's   40l(a)(9) Account Balance by the number in the Joint and Last Survivor Table set forth in   section 1.40l(a)(9)-9 of the Treasury Regulations, using the Participant's and spouse's attained   ages as of the Participant's and spouse's birthdays in the Distribution Calendar Year.   Required minimum distributions will be determined under this Section   B.2(c) beginning with the first Distribution Calendar Year and up to and including the   Distribution Calendar Year that includes the Participant's date of death.   (d) If the Participant dies on or after the date distributions begin, the   Participant's entire remaining interest under the Plan will be distributed in accordance with   Section B.2(a).   (e) For purposes of this Section B.2, the following terms shall have the   meanings as set forth below unless the context requires otherwise:   (1) Designated Beneficiary. The individual who is the Beneficiary and   is the Designated Beneficiary under section 40l(a)(9) of the Code and section 1.40l(a)(9)-l,   Q&A-4, of the Treasury Regulations.   DM_US 14702698-2J.064500.0013   -51-    

 

(2) Distribution Calendar Year. A calendar year for which a minimum   distribution is required. For distributions beginning before the Participant' s death, the first   Distribution Calendar Year is the calendar year immediately preceding the calendar year which   contains the Participant's Required Beginning Date. For distributions beginning after the   Participant's death, the first Distribution Calendar Year is the calendar year in which   distributions are required to begin under Section B.2(a). The required minimum distribution for   the Participant's first Distribution Calendar Year will be made on or before the Participant's   Required Beginning Date. The required minimum distribution for other Distribution Calendar   Years, including the required minimum distribution for the Distribution Calendar Year in which   the Participant' s Required Beginning Date occurs, will be made on or before December 31 of that   Distribution Calendar Year.   (3) Participant's 40l(a)(9) Account Balance. The Vested Benefit   balance as of the last valuation date in the calendar year immediately preceding the Distribution   Calendar Year (valuation calendar year) increased by the amount of any contributions made and   allocated or forfeitures allocated to the Vested Benefit balance as of dates in the valuation   calendar year after the valuation date and decreased by distributions made in the valuation   calendar year after the valuation date. The Vested Benefit balance for the valuation calendar year   includes any amounts rolled over or transferred to the Plan either in the valuation calendar year   or in the Distribution Calendar Year if distributed or transferred in the valuation calendar year.   (4) Required Beginning Date. The date specified in Section 8.04, as   applicable.   DM_US 14702698-23.064500.0013

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00240-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00240-of-00352.parquet"}]]