Document:

Exhibit 10.1

 

BANK OF AMERICA DIRECT TO
CONSUMER LOAN PROGRAM: UMBRELLA AGREEMENT

 

THIS UMBRELLA
AGREEMENT (the “Agreement”) is
amended and restated in full as of the 1st day of April, 2006, by
and between THE FIRST MARBLEHEAD CORPORATION, a Delaware corporation (“FMC”), and BANK OF AMERICA, N.A., a
national banking association having its principal office located in the State
of North Carolina (the “Program Lender”).

 

RECITALS

 

A.            FMC and the
Program Lender have established its Bank of America Direct to Consumer Loan
Program (the “Bank of America DTC Program”)
to assist students and parents in financing education at private elementary and
secondary schools and at various institutions of higher education. Loans made
under the Bank of America DTC Program are guaranteed by TERI pursuant to a
Guaranty Agreement between Program Lender and The Education Resources
Institute, Inc., a Massachusetts non-profit corporation (“TERI”). Pursuant to the Bank of America
DTC Program, FMC promotes the expansion of student and parent loan lending
activities by agreeing to purchase or cause to be formed one or more special
purpose business trusts or other entities (each an “SPE”) to purchase promissory notes (the “Notes”) evidencing Bank of America DTC
Loans (as defined below) following origination. The purchase price payable by
each SPE for a given pool of Bank of America DTC Loans is funded through
issuance and sale by the SPE of certificates or other evidences of
indebtedness, or by direct loans to the SPE, in either case the repayment of
which is supported or collateralized by the income stream from the Bank of
America DTC Loans included in such pool (each such transaction, a “Securitization Transaction”).

 

B.            FMC
has requested that the Program Lender originate and make available for purchase
by SPEs from time to time Bank of America DTC Loans and to serve as the sole
lending institution participating in the Bank of America DTC Program.

 

C.            The
Program Lender and FMC are parties to a Bank of America Direct to Consumer Loan
Program Umbrella Agreement, dated as of June 30, 2003, as amended to date (the “Original Umbrella Agreement”). The parties
desire to amend, restate and replace in full the Original Umbrella Agreement
with this Agreement to set forth the terms and conditions under which FMC and
Program Lender will participate in the Bank of America DTC Program.

 

NOW,
THEREFORE, in consideration of the above Recitals and for other good and
valuable consideration, the receipt and adequacy of which are hereby
acknowledged, the parties hereto hereby agree as follows:

 

AGREEMENT

 

1.            Definitions.
For purposes of this Agreement, the following terms shall have the following
meanings:

 

1

 

“Affiliate” means any person any other
person, directly or indirectly, is in control of, is controlled by, or is under
common control with, such person. A person shall be deemed to control another
person if the controlling person possesses directly or indirectly, the power to
direct or to cause the direction of the management and policies of the other
person, whether through the ownership of voting securities, by contract or
otherwise.

 

“Bank of America DTC Loans” shall mean
loans (a) made in accordance with and conforming to the requirements of the
Program Manual in effect at the time the loans were made, (b) serviced by the
Servicer in accordance with Appendix E to the Program Manual (the “Program Guidelines”), (c) covered by and
subject to all the benefits of the Guaranty Agreement; and (d) marketed with
the Education Maximizer Mark.

 

“Business Day” shall mean any day other
than: (a) a Saturday or Sunday, or (b) a day on which banking institutions in
the State of North Carolina are required or authorized by law or executive
order to be closed.

 

“Change in Control” means:

 

(a)           With
respect to the Program Lender, any of the following:

 

i.      The
acquisition by any other entity, individual or group (within the meaning of
Sections 13(d)(3) or 14(d)(2) of the Securities Exchange Act of 1934, as
amended (the “Exchange Act”) of
beneficial ownership (as defined in Rule 13d-3 promulgated under the Exchange
Act) of more than fifty percent (50%) of the common stock of the Program Lender
and/or other securities which have more than fifty percent (50%) of the
combined voting power of the Program Lender’s securities entitled to vote in
the election of directors; or

 

ii.     The
sale of all or substantially all of the common stock or assets of the Program
Lender to any other entity, individual or group; or

 

iii.    The
reorganization, merger or consolidation of the Program Lender in which the
shareholders of Program Lender immediately before such event will not
immediately thereafter own more than fifty percent (50%) of the combined voting
power entitled to vote in the election of directors of the reorganized, merged
or consolidated Program Lender’s voting securities.

 

(b)           With
respect to FMC, any one transaction or a series of transactions within six (6)
months of each other in which there is a change of beneficial ownership of more
than fifty percent (50%) of the common stock or other equity interests
representing the right to elect directors or otherwise determine the management
of the company.

 

(c)           A “Change in Control” shall not include any
transactions with an entity which is an Affiliate immediately prior to such
transaction.

 

2

 

“Co-Lender Indemnification Agreement” shall
mean a mutual indemnification agreement between Program Lender and any other
person or entity originating loans which will be pooled with Bank of America
DTC Loans in any Securitization Transaction, which mutual indemnification
agreement shall be satisfactory in form and substance in all reasonable
respects to Program Lender.

 

“Confidential Information” shall have the meaning
given such term in Section 6(a) below.

 

“Currently Scheduled Termination Date”
shall mean May 31, 2008.

 

“Education Maximizer Mark” shall mean the
Education Maximizer mark owned by Program Lender and licensed to FMC under the
Education Maximizer License Agreement.

 

“Education Maximizer License Agreement”
shall mean that certain agreement of the same name between Program Lender and
FMC in the form attached as Exhibit A, as amended from time to time.

 

“Effective Date” shall have the meaning
given such term in Section 20 below.

 

“Guaranty Agreement” means that certain
agreement of same name between Program Lender and TERI for the Bank of America
DTC Program dated June 30, 2003, as amended from time to time.

 

“Loan
Origination Agreement” shall mean the agreement attached as Exhibit
B as amended from time to time.

 

“Note Purchase Agreement” shall mean that
certain agreement of that name between Program Lender and FMC for the Bank of
America DTC Program in the form attached as Exhibit C.

 

“Notes” shall have the meaning given such
term in Recital A above.

 

“Program Manual” shall mean a detailed
manual setting forth the terms, conditions, eligibility, policies and
procedures for the Bank of America DTC Program as the same may be amended from
time to time as provided in Section 7 below.

 

“Proprietary Information” shall have the
meaning given such term in Section 6(b) below.

 

“SPE” shall have the meaning given such
term in Recital A above.

 

“Securitization Transaction” shall have the
meaning given such term in Recital A above.

 

“Servicer” shall mean and refer to PHEAA,
or such other servicer as may be approved by FMC and TERI and retained by the
holder of Bank of America Direct to Consumer Loans in accordance with the Note
Purchase Agreement and the Guaranty Agreement.

 

“Termination Date” shall mean the earliest
to occur of:

 

3

 

(a)           The
Currently Scheduled Termination Date;

 

(b)           The
ninetieth (90th) calendar day after delivery by FMC, on the one
hand, or the Program Lender, on the other hand, of written notice that the
party giving notice has elected to terminate this Agreement for its convenience,
provided,  however,
that notice under this subsection shall not be delivered prior to June 1, 2007;

 

(c)           The
date of delivery by FMC, on the one hand, or the Program Lender, on the other
hand, of written notice that the other party has failed to consummate a
Securitization Transaction pursuant to the Note Purchase Agreement,
notwithstanding that all conditions precedent to such party’s obligation to do
so set forth in the Note Purchase Agreement have been satisfied, which failure
is not cured within five (5) Business Days;

 

(d)           The
sixtieth (60th) day following the date of delivery by FMC, on the
one hand, or the Program Lender, on the other hand, of written notice that the
other party has materially breached this Agreement or the Note Purchase
Agreement, unless such party cures such breach on or before such sixtieth (60th)
day, it being expressly understood and agreed that the failure to make any
payment required hereunder shall constitute a material breach;

 

(e)           Any
party hereto shall file any proceeding under the U.S. Bankruptcy Code or
similar state insolvency act, or shall be the subject of any involuntary
bankruptcy proceeding, including, without limitation, a seizure of assets by
the FDIC, which proceeding is not dismissed within sixty (60) days after the
filing thereof;

 

(f)            The
date of delivery by FMC or the Program Lender of written notice that there has
occurred a Change in Control of the party receiving such notice and that the
party giving notice, in its sole and absolute discretion, has elected to
terminate this Agreement;

 

(g)           The
date the Guaranty Agreement expires or is not renewed or a TERI Insolvency
Event occurs; or

 

(h)           The
date the Guaranty Agreement is terminated by reason of breach thereof by either
Program Lender or TERI.

 

4

 

2.             Term
of Agreement; Effect of Termination.

 

a.             This
Agreement shall be effective from the Effective Date to but not including the
Termination Date. In the event the Termination Date shall occur by reason of:

 

(i)            Breach
of the Guaranty Agreement by either TERI or Program Lender, material breach of
the Note Purchase Agreement by FMC or Program Lender, or by the filing of any
proceeding under the U.S. Bankruptcy Code by FMC or Program Lender, neither
party shall have any further obligations to purchase or sell loans under the
Note Purchase Agreement, but the nonbreaching party shall have whatever
remedies are provided by the Guaranty Agreement, the Note Purchase Agreement or
otherwise by law.

 

(ii)           The
occurrence of a TERI Insolvency Event, by the expiration of or failure to renew
the Guaranty Agreement, or for any other reason:

 

(1)           The
Note Purchase Agreement shall remain in full force and effect with respect to
Bank of America DTC Loans made prior to the Termination Date; and

 

(2)           FMC
or a designee SPE shall have the right to purchase any such Bank of
America DTC Loans, on the terms set forth in the Note Purchase Agreement;

 

each until the end of the
Right of First Refusal Period (as that term is defined in the Note Purchase
Agreement) with respect to such Bank of America DTC Loans.

 

(b)           The
following provisions shall survive any termination of this Agreement:  Sections 5, 6 and 19 of this Agreement and
Articles V and VIII of the Note Purchase Agreement.

 

(c)           After
notice of termination or expiration of the Note Purchase Agreement is given
(including, without limitation, notice of Change of Control), the parties shall
meet within seven (7) Business Days to develop a transition plan to deal with
applications and approved loans that have not been fully processed and/or
funded. Such plan shall require all parties to fulfill any legal commitments already
made to borrowers or applicants. Subject in all cases to binding legal rights
of borrowers, unless termination notice has been given because of expiration of
the Guaranty Agreement, occurrence of a TERI Insolvency Event, breach of the
Guaranty Agreement by TERI, breach of the Note Purchase Agreement by FMC, or
because of the initiation of a proceeding made under the U.S. Bankruptcy Code
or similar proceeding by FMC, and unless otherwise agreed in the transition
planning meetings, Program Lender shall continue to process applications until
thirty (30) days before the effective Termination Date, approvals shall cease
to be granted fifteen (15) days before the Termination Date, and loan
disbursements shall be completed not later than ninety (90) days after the
Termination Date. In the case of a termination notice given because of
expiration of the Guaranty Agreement, occurrence of a TERI Insolvency Event,
breach of the Guaranty Agreement by TERI, breach of the Note Purchase Agreement
by FMC, or because of the initiation of a proceeding made under the U.S.
Bankruptcy Code or similar proceeding by FMC, Program Lender may elect to take
only those further actions as are required to fulfill the legal rights of
borrowers and applicants.

 

5

 

3.             [Reserved]

 

4.             Marketing
Efforts. Program Lender is responsible for developing marketing materials
for distribution to potential borrowers relating to the Bank of America DTC
Program. Subject to the confidentiality provisions of Section 6 below, each
party hereto agrees to provide such information as may be reasonably required
by the other parties in connection therewith. During the term of this
Agreement, the Program Lender shall grant to FMC (a) a nonexclusive license to
use the Program Lender’s name and logo pursuant to a license agreement between
FMC and Program Lender dated as of November 21, 1996, as hereafter amended, and
(b) a nonexclusive license to use the Program Lender’s mark “Education
Maximizer” pursuant to the Education Maximizer License Agreement.

 

5.             Other
Business; Exclusivity.

 

(a)           Other
Business. Except as set forth in Section 5(b), below, nothing contained
herein, or in any other document, instrument or agreement executed in
connection with the Bank of America DTC Program shall in any manner or to any
extent affect the rights of:

 

(i)
The Program Lender to engage in any other business including, without
limitation, offering credit products to Bank of America DTC Program borrowers
at any time; provided, however, that the Program Lender shall protect
Proprietary Information from unnecessary disclosure; or

 

(ii)
FMC to offer other loan products to potential borrowers or any other person; provided,
however, that without the prior written consent of Program Lender, given
in Program Lender’s sole and absolute discretion, FMC shall not market to any
Bank of America DTC Loan borrower directly, or indirectly through another
lender, any private student loan offered by a different lender, pursuant to a
promotional scheme that is targeted specifically to Bank of America DTC Loan
borrowers whose loans are owned by Program Lender. This restriction does not
apply after sale of a loan.

 

(b)           Exclusivity.
This Agreement and the other Bank of America DTC Program documents establish an
exclusive arrangement between FMC and Program Lender during the term of this
Agreement for the origination, marketing, purchase and sale of Bank of America
DTC Loans. During the term of this Agreement, Program Lender and FMC will use
and promote the Education Maximizer Mark exclusively in connection with the
Bank of America DTC Program. Both parties remain free to promote or deal in
other loan products not associated with the Education Maximizer Mark.

 

6

 

6.             Confidential
Information: Proprietary Information.

 

(a)           All
information of any kind and description relating to borrowers under Bank of
America DTC Loans (and rejected applicants for such loans) and their accounts,
whether in paper, electronic, or other form, that is maintained by or on behalf
of Program Lender for a business purpose (“Confidential Information”)
is made available by the Program Lender and accepted by FMC with the
understanding and agreement that such Confidential Information is property
valuable to the Program Lender which has been developed through the expenditure
of substantial time and money and that the Program Lender desires to retain it
in confidence and withhold its availability to others. Under Section
502(e)(l)(C) of the Gramm, Leach, Bliley Act and the regulations thereunder (12
C.F.R. §§ 40.14(a)(3); 216.14(a)(3); 332.14(a)(3); and 573.14(a)(3)), FMC is
permitted to receive such Confidential Information as a potential purchaser of
loans and/or the arranger of a Securitization Transaction. FMC agrees that,
except as required by law and except as is reasonably necessary in connection
with any Securitization Transaction, any and all Confidential Information and
any information or knowledge which may be imparted through receipt or examination
of Confidential Information will not be copied or communicated to any third
party or used by FMC or any of its officers, employees, agents or other
representatives except for the purposes of this Agreement and the Note Purchase
Agreement. FMC will take reasonable precautions to prevent any unauthorized
disclosure of Confidential Information. Upon purchase of the Notes in a
Securitization Transaction, borrower data for the Notes received as part of the
purchase shall become the property of the purchaser, free and clear of the
foregoing restrictions; provided, however, that (i) Program Lender shall
have the right to own in perpetuity with the purchaser all borrower data
obtained up until the time of such sale, and (ii) subject to applicable privacy
and other laws affecting disclosure of consumer information, FMC shall cause
the purchaser and the Servicer to be obligated to provide a report to Program
Lender within 30 days after the close of each calendar quarter, substantially
in the form of Exhibit D attached hereto.

 

The obligations of FMC
set forth in this Section 6(a) with respect to confidentiality and use of
Confidential Information received from Program Lender prior to purchase of Bank
of America DTC Program Loans, and with respect to reporting of deidentified
data after purchase of loans shall survive the Termination Date.

 

(b)           All
information relating to the pricing of the Bank of America DTC Program Loans
included in the Note Purchase Agreement shall constitute Proprietary
Information that has been or will be made available to the Program Lender or
any of its Affiliates by FMC or has otherwise been obtained by the Program
Lender or any of its Affiliates from FMC. Such Proprietary Information is
property valuable to FMC and has been developed through the expenditure of
substantial time and money and that FMC desires to retain it in confidence and
not to permit its commercial use by others. “Proprietary
Information”, at a minimum, shall not include: (i) information that
has become generally available to the public other than as a result of a
disclosure by or through the Program Lender, (ii) information derived by
Program Lender from sources other than activities under or related to this
Agreement, (iii) information required by law to be disclosed (but only to the
extent such disclosure is legally required) and (iv) underwriting guidelines
not developed by FMC. Program Lender will take reasonable precautions to
prevent any unauthorized commercial use of Proprietary Information,

 

(c)           Borrower
Privacy. Unless FMC obtains direct authorization from any borrower, it
shall not disclose and/or use any of the borrower’s nonpublic personal
information obtained under this Agreement for any

 

7

 

purpose other than those specifically provided for in this Agreement,
nor will it provide such information to any other party, including its
Affiliates, except as allowed by law.

 

7.             Program
Manual. FMC has collaborated with TERI to draft and deliver to the Program
Lender the Program Manual, which has been reviewed and approved by the Program
Lender. Such Program Manual may not be modified in any Lender-related manner
during the term of this Agreement without the prior written consent of the
Program Lender, which consent shall not be unreasonably withheld. Lender-related
modifications to the Program Manual shall mean any change to Bank of America
DTC loan terms, borrower eligibility, or any other change that would affect
Program Lender’s rights, obligations, responsibilities, or costs.

 

8.             Securitization
Provisions. FMC agrees that:

 

(a)          Any
Offering Materials (as defined in the Note Purchase Agreement) relating to each
Securitization Transaction will contain a statement to the effect that: (i) the
certificates being offered thereunder do not represent an interest in, or
obligation of, the Program Lender or its parent, Bank of America Corporation,
(ii) no purchaser of such certificates shall have any recourse to the Program
Lender or Bank of America Corporation, (iii) neither the certificates nor the
notes evidencing Bank of America DTC Loans supporting such certificates are
insured or guaranteed by the Federal Deposit Insurance Corporation or, at the
request of or for the account of the Program Lender or Bank of America Corporation,
by any other governmental agency, and (iv) the underwriting criteria employed
by the Program Lender in originating the Bank of America DTC Loans may be
different from those utilized by the Program Lender and its Affiliates in
originating student loans under other existing student loan programs;

 

(b)          FMC
shall, or shall cause the applicable SPE to, perform the acts and assume the duties
of depositor and manager pursuant to the provisions of the trust or other
agreement or instrument under which the certificates or other evidences of
indebtedness will be issued in any Securitization Transaction. Under no
circumstances shall Program Lender be obligated to perform any such duties.
Neither Program Lender nor any of its directors or other representatives shall
execute any registration statement filed with the Securities and Exchange
Commission in connection with any Securitization Transaction.

 

(c)          The
certificates or other evidences of indebtedness to be issued by FMC and/or any
SPEs in Securitization Transactions shall be issued and sold by FMC and/or such
SPEs, with or without the assistance of FMC, but in any event without any
participation whatsoever on the part of Program Lender except as expressly
provided in subparagraph (ii) below. Without limiting the generality of the
foregoing, it is expressly acknowledged and agreed by FMC that Program Lender
shall not (i) actively participate in any “road shows” or meetings with
investors or prospective investors, (ii) prepare, assist in preparing or review
any written or oral materials or prospectuses to be provided to investors or
potential investors or to be filed with the Securities and Exchange Commission,
any state securities commission, any stock exchange or NASDAQ other than
excerpts from such documents describing the Program Lender and its procedures
drafted expressly for inclusion in such documents, or (iii) otherwise be
responsible in any way for soliciting, or assisting FMC or any SPE in
soliciting, the purchases of certificates or other evidences of indebtedness to
be issued in any Securitization Transaction provided, however,
that (i) nothing herein shall prohibit the Program Lender from attending road
shows or meetings with investors or prospective investors as a silent observer,
and (ii) Program Lender will provide the information required

 

8

 

under Article XII
of the Note Purchase Agreement.

 

(d)           Without
the prior written consent of Program Lender, which consent shall not be unreasonably
withheld, loans originated by any person or entity other than Program Lender
will not be included in any Securitization Transaction that includes Bank of
America DTC Program Loans, and by proposing that such be included in any
Securitization Transaction which will include Bank of America DTC Loans
originated by Program Lender, FMC and the applicable SPE shall be deemed to
have represented and warranted that such other loans were originated under
detailed guidelines approved by TERI. The execution and delivery to Program Lender
of a Co-Lender Indemnification Agreement by other participating “Program
Lenders” in any Securitization Transaction shall be a condition precedent to
any agreement of Program Lender to permit the pooling of TERI-guaranteed loans
originated by such other person or entity with Bank of America DTC Loans
originated by Program Lender in a Securitization Transaction.

 

9.            No
Assignment. No party may assign its rights or obligations under this
Agreement without the prior written consent of the parties hereto; provided,
however that:

 

(a)    Program
Lender may assign its rights hereunder to an Affiliate that is a national banking
association, state chartered bank or other lender having the legal power and
right under applicable law (including, without limitation, the usury laws of
the State where it is located) to make Bank of America DTC Loans and to “export”
the laws of the State where it is located pursuant to federal law, if TERI
agrees to the transfer of the Guaranty Agreement and the Loan Origination
Agreement to such Affiliate (which agreement will not be unreasonably
withheld). Program Lender shall bear all costs arising out of such assignment,
including, without limitation, any costs for legal advice relating to loan
compliance and regulation.

 

(b)   FMC
may assign its rights hereunder to a warehouse to hold pooled Bank of America
DTC Loans in the period of time between the point at which the Bank of America
DTC Loans become Seasoned Loans (as that term is defined in the Note Purchase
Agreement) and the date of the Securitization Transaction.

 

(c)    Any
assignment in violation hereof shall be automatically null and void.

 

10.           Amendment.
This Agreement may not be amended nor terms or provisions hereof waived unless
such amendment or waiver is in writing and signed by parties hereto.

 

11.           No
Waiver. No delay or failure by any party to exercise any right, power or remedy
hereunder shall constitute a waiver thereof by such party, and no single or
partial exercise by any party of any right, power or remedy shall preclude
other or further exercise thereof or any exercise of any other rights, powers
or remedies.

 

9

 

12.           Entire
Agreement. This Agreement and the documents and agreements referred to
herein embody the entire agreement and understanding among the parties hereto
and supersede all prior agreements and understandings relating to the subject
matter hereof and thereof

 

13.           Notices.
All notices given by any party to the others under this Agreement shall be in
writing delivered: (a) personally, (b) by facsimile transmission, (c) by
overnight courier, prepaid, or (d) by depositing the same in the United States
mail, certified, return receipt requested, with postage prepaid, addressed to
the party at the address set forth below. Any party may change the address to
which notices are to be sent by notice of such change to each other party given
as provided herein. Such notices shall be effective on the date received.
Notices shall be given as follows:

 

 

	
  If to Program Lender:

  
	
   

  
	
  Tracy J. Grooms

  
	
  Senior Vice President

  
	
  Bank of America, N.A.

  
	
  Mail Code:
  NC1-002-15-26

  
	
  Charlotte, NC
  28255-0001

  
	
   

  
	
  With a copy to:

  
	
   

  
	
  Laura L. Rogers

  
	
  Assistant General
  Counsel

  
	
  Bank of America, N.A.

  
	
  11th Floor

  
	
  800 Market Street

  
	
  St. Louis, MO 63101

  
	
   

  
	
  If to FMC:

  
	
   

  
	
  President

  
	
  The First Marblehead
  Corporation

  
	
  34th Floor

  
	
  800 Boylston Street

  
	
  Boston, MA 02199-8157

  
	
   

  
	
  With a copy to:

  
	
   

  
	
  Legal Department

  
	
  The First Marblehead
  Corporation

  
	
  34th Floor

  
	
  800 Boylston Street

  
	
  Boston, MA 02199-8157

  

 

10

 

14.           Attorneys’
Fees. In the event of a lawsuit or arbitration proceeding arising out of or
relating to this Agreement, the prevailing party shall be entitled to recover
costs and reasonable attorneys, fees incurred in connection with the lawsuit or
arbitration proceeding, as determined by the court or arbitrator.

 

15.           Governing
Law. This Agreement shall be governed by and construed in accordance with
the laws of the State of North Carolina.

 

16.           Counterparts.
This Agreement may be executed in any number of counterparts, all of which
together shall constitute one agreement.

 

17.           No
Third Parties Benefited. This Agreement is made and entered into for the
sole protection and legal benefit of the parties, and their permitted
successors and assigns, and no other person shall be a direct or indirect legal
beneficiary of, or have any direct or indirect cause of action or claim in
connection with, this Agreement. 

 

18.           Consent
to Jurisdiction. SUBJECT TO SECTION 19 BELOW, ANY LEGAL ACTION OR
PROCEEDING WITH RESPECT TO THIS AGREEMENT MAY BE BROUGHT IN THE COURTS OF THE
STATE OF NORTH CAROLINA OR OF THE UNITED STATES FOR THE WESTERN DISTRICT OF
NORTH CAROLINA, AND BY EXECUTION AND DELIVERY OF THIS AGREEMENT, EACH OF THE
PARTIES HERETO CONSENTS, FOR ITSELF AND IN RESPECT OF ITS PROPERTY, TO THE
NON-EXCLUSIVE JURISDICTION OF THOSE COURTS, EACH OF THE PARTIES HERETO
IRREVOCABLY WAIVES ANY OBJECTION, INCLUDING ANY OBJECTION TO THE LAYING OF
VENUE OR BASED ON THE GROUNDS OF FORUM NON CONVENIENT WHICH IT MAY NOW OR
HEREAFTER HAVE TO THE BRINGING OF ANY ACTION OR PROCEEDING IN SUCH JURISDICTION
IN RESPECT OF THIS AGREEMENT OR ANY DOCUMENT RELATED HERETO.

 

19.           Dispute
Resolution. 

 

(a)         Any
controversy or claim between the parties arising from or in connection with
this Agreement or the relationship of the parties under this Agreement whether
based on contract, tort, common law, equity, statute, regulation, order or
otherwise, and whether arising before or after the termination of this Agreement
(“Dispute”) shall be resolved as
follows:

 

(i)            Upon
written request of either party, the parties will each appoint a designated
representative within three (3) Business Days whose task it will be to meet for
the purpose of endeavoring to resolve such Dispute.

 

(ii)           The
designated representatives shall meet, beginning within five (5) Business Days
after the last representative is appointed, and shall meet as often as the
parties reasonably deem necessary to discuss the problem in an effort to
resolve the Dispute without the necessity of any formal proceeding.

 

(iii)          Arbitration
proceedings for the resolution of a Dispute under Section 19(b) may not be
commenced until the earlier to occur of the following:

 

11

 

(1)           The
designated representatives conclude in good faith that amicable resolution
through continued negotiation of the matter does not appear likely; or

 

(2)           The
expiration of the thirty (30)-day period immediately following the initial
request to negotiate the Dispute.

 

(b)           Arbitration.           If
the provisions of Section 19(a) have been satisfied, but the Dispute has not
been resolved, then the Dispute shall be settled pursuant to the following:

 

(i)            Any
controversy or claim between or among the parties arising our of or relating to
this Agreement or any agreements or instruments relating hereto or delivered in
connection herewith and any claim based on or arising from an alleged tort,
shall at the request of any party be determined by arbitration. The arbitration
shall be conducted in accordance with the United States Arbitration Act (Title
9, U.S. Code), notwithstanding any choice of law provision in this Agreement,
and under the Commercial Rules of the American Arbitration Association (“AAA”). The arbitrator(s) shall give effect
to statutes of limitation in determining any claim. Any controversy concerning
whether an issue is arbitrable shall be determined by the arbitrator(s).
Judgment upon the arbitration award may be entered in any court having jurisdiction.
The institution and maintenance of an action for judicial relief or pursuit of
a provisional or ancillary remedy shall not constitute a waiver of the right of
any party, including the plaintiff, to submit the controversy or claim to
arbitration if any other party contests such action for judicial relief.

 

(ii)           No
provision of this Section 19(b) shall limit the right of any party to exercise
self-help remedies such as setoff, or to obtain provisional or ancillary
remedies from a court of competent jurisdiction before, after, or during the
pendency of any arbitration or other proceeding. The exercise of a remedy does
not waive the right of any party to resort to arbitration or reference.

 

(c)           Permissible
Legal Proceedings. Notwithstanding anything contained in Sections 19(a) and
(b), (i) a party may institute legal proceedings to seek a temporary
restraining order or other temporary or preliminary injunctive relief to
prevent immediate and irreparable harm to such party, and for which monetary
damages would be inadequate, pending final resolution of the dispute,
controversy or claim pursuant to arbitration, and (ii) a party may institute
legal proceedings if necessary to preserve a superior position with respect to
other creditors. Such conduct shall not constitute a waiver of the right of
either party to resort to arbitration to obtain relief other than that
specified in this Section 19(c).

 

20.           Effective
Date. This Agreement shall be generally effective as of April 1, 2006 (the “Effective Date”), except that obligations
that relate to particular Bank of America DTC Loans shall become effective with
respect to Bank of America DTC Loans the applications for which are received by
Program Lender (or its processing agent) on or after April 1, 2006; and provided
further that this Agreement shall not become effective until all of the
following events have occurred:

 

(a)          The
Program Lender and FMC shall have executed and delivered to the other a
counterpart of this Agreement;

 

12

 

(b)          The
Program Lender and FMC shall have executed and delivered to the other the Note
Purchase Agreement; and

 

(c)           TERI
and Program Lender shall have executed and delivered to each other an amendment
to the Guaranty Agreement adopting the pricing set forth in Schedule 3.3
attached hereto as Exhibit E.

 

21.           Public
Announcement. All media releases, public announcements and public
disclosures by either party, or their representatives, employees or agents,
relating to this Agreement or the name or logo of Program Lender, including,
without limitation, promotional or marketing material, but not including any
disclosure required by legal, accounting or regulatory requirements beyond the
reasonable control of the releasing party, shall be coordinated with and
approved by the other party in writing prior to the release thereof.

 

 

IN WITNESS WHEREOF, the
parties hereto have executed this Agreement as of the day and year first above
written.

 

 

	
   

  	
  THE FIRST MARBLEHEAD
  CORPORATION, a Delaware corporation

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Jack L. Kopnisky

  
	
   

  	
  Name:

  	
  Jack L. Kopnisky

  
	
   

  	
  Title: 

  	
  Chief Executive Officer

  
	
   

  	
   

  
	
   

  	
  BANK OF AMERICA, N.A.

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Tracy J. Grooms

  
	
   

  	
  Name:

  	
  Tracy J. Grooms

  
	
   

  	
  Title: 

  	
  Senior Vice President

  
				

 

13

 

INDEX TO EXHIBITS

 

EXHIBIT A           EDUCATION
MAXIMIZER LICENSE AGREEMENT

 

EXHIBIT B            LOAN
ORIGINATION AGREEMENT

 

EXHIBIT C            NOTE
PURCHASE AGREEMENT

 

EXHIBIT D            PERFORMANCE
REPORT TEMPLATE

 

EXHIBIT E            SCHEDULE
3.3 TO GUARANTY AGREEMENT

 

14

 

EXHIBIT A TO
UMBRELLA AGREEMENT

 

EDUCATION
MAXIMIZER

LICENSE AGREEMENT

BANK OF AMERICA,
N.A.

TO

THE FIRST
MARBLEHEAD CORPORATION

 

This License Agreement (“License”),
entered into as of this 1st day of April, 2006, by and between Bank
of America, N.A., a national banking association (“Owner”), with a principal place of business in Charlotte,
North Carolina, and The First Marblehead Corporation, a Delaware corporation (“User”), with a principal place of
business at 800 Boylston Street, Boston, Massachusetts.

 

RECITALS

 

Owner is the owner of the
service marks listed and depicted on Schedule A attached hereto and
incorporated herein and of all goodwill associated therewith (said service
marks and associated goodwill being collectively referred to herein as the “Marks”); and

 

User wishes to license the Marks for use in connection
with its business of acting as financial advisor and marketing facilitator of
the Bank of America DTC Program (the “Business”) pursuant to that certain
Umbrella Agreement by and between Owner and User, dated as of April 1, 2006
(the “Umbrella Agreement”).
Capitalized terms used herein without definition have the meaning set forth in
the Umbrella Agreement.

 

NOW,
THEREFORE, in consideration of the foregoing and in consideration
of the mutual promises contained in this License, the parties hereto agree as
follows:

 

1.             GRANT
OF LICENSE. Owner grants to User a nonexclusive, nontransferable license to
use, display and advertise the Marks solely in connection with the Business.

 

User’s use of the Marks shall be limited to use in
connection with the Bank of America DTC Loan Program. User accepts this license
subject to the terms and conditions contained in this License.

 

2.             OWNERSHIP
OF MARKS. (a) User acknowledges that ownership of the Marks is in Owner. User
agrees that it will do nothing inconsistent with such ownership. User further
agrees to assist owner in recording this License with all appropriate
governmental authorities. User shall execute all documents reasonably deemed
necessary by Owner or its attorneys to accomplish such recording. User agrees
that nothing in this License shall give User any right, title or interest in
the Marks other than the right to use the Marks in accordance with this License.
User agrees that it will not at any time during the term of this License or
after its termination (i) use any mark or other term confusingly similar to the
Marks, or (ii) challenge the title of Owner to any of the Marks or challenge
the validity of this License.

 

(b)           User
acknowledges that, in order to protect Owner’s rights and good will in the
Marks, Owner must supervise and control User’s uses of the Marks. User further
acknowledges that Owner maintains high standards for the services provided to
its clients at all times. Owner and User agree and acknowledge that the powers
granted to Owner herein with respect to review of User’s Business documents,
agreements and materials are granted to Owner to enable Owner to ensure that
User maintains the quality of services it provides in connection with the Marks
at a level commensurate with the quality of the services associated with the
Marks and with the quality standards set by Owner for use of the Marks.

 

15

 

3.             QUALITY
STANDARDS. User agrees that the nature and quality of all services rendered
by User in connection with all of the Marks, all loans originated by User under
any of the Marks and all related advertising, promotional and other uses of the
Marks by User (together, the “Uses”)
shall conform to standards set by Owner under the Umbrella Agreement and the
related agreements referred to therein. Owner shall have the right to request,
review, and approve or disapprove copies or samples of all written materials,
and demonstrations of all other Uses at any time, and shall be entitled to
require that User modify any of the Uses to conform to User’s agreements with
Owner.

 

4.             FORM
OF USE. User agrees to use the Marks only in the form and manner permitted
from time to time by Owner, with all appropriate legends prescribed by Owner. In
order to avoid public confusion about the Marks, User further agrees not to use
any other trademark or service mark (other than GATE-related marks and
TERI-related marks) in combination with any of the Marks without obtaining the
prior written consent of Owner. User shall indicate that the Marks are service
marks of Owner by using the symbol Ô in connection with
all displays of the Marks.

 

5.             PROHIBITION
ON SUBLICENSING. Except pursuant to a permitted assignment of the Umbrella
Agreement, User shall not be entitled to sublicense the Marks without Owner’s
prior written consent. User shall not permit anyone other than User to use the
Marks without Owner’s prior written consent.

 

6.             BUSINESS
DOCUMENTS. Owner shall be entitled to receive and review all printed
documents and marketing information and other printed communication provided by
User. User agrees that the Business forms it shall use in connection with the
Marks shall have the prior written approval of Owner, and that it shall not use
any forms on which any of the Marks are placed in connection with the operation
of the Business that have not been previously approved by Owner.

 

7.             INFRINGEMENT
PROCEEDINGS. User agrees to notify Owner of any unauthorized use of the
Marks by others and of any challenge(s) to User’s use of any of the Marks by
any third party promptly as they come to User’s attention. Owner shall have the
sole right to bring infringement or unfair competition proceedings involving
the Marks, in its sole discretion. User shall reasonably cooperate in all such
proceedings.

 

8.             CONSIDERATION.
Consideration for this License is the mutual promises in this License and in
the Umbrella Agreement. No royalty shall be paid.

 

9.             TERM.
Except as provided in section 10 hereof, this License shall continue in full
force for so long as the Umbrella Agreement remains in force and shall
terminate on the same date as the Umbrella Agreement.

 

10.           EFFECT
OF TERMINATION. Upon termination of this License for any reason, User
agrees to discontinue all use of the Marks and any term confusingly similar
thereto immediately and to cooperate with Owner or its appointed agent to
notify the appropriate authorities of the cancellation of this License to the
extent the same is recorded; provided, however, use of the Marks in
connection with servicing Bank of America DTC loans outstanding at the time of
such termination may continue after termination of this License, but all such
use shall continue to be subject to the terms of this License, notwithstanding
its termination. User agrees that all rights in the Marks and the goodwill
connected therewith shall remain the property of Owner.

 

11.           ASSIGNMENT.
All of Owner’s rights hereunder may be assigned, in Owner’s sole and exclusive
discretion. User shall not be entitled to assign its rights hereunder without
Owner’s prior written consent; provided, however, that User may assign
its rights hereunder to a permitted assignee under the Umbrella Agreement.

 

12.           MISCELLANEOUS.
This License shall be interpreted according to the laws of the State of North
Carolina. In the event that any part of this License is held to be ineffective
or unenforceable, it shall have no effect on the balance of the License, which
shall be enforceable according to its terms. This Agreement constitutes the
entire agreement between the parties and supersedes any and all prior
agreements between the parties with regard to

 

16

 

the subject matter addressed herein. No amendment, modification or
waiver of any of the provisions of this Agreement shall be valid unless set
forth in writing and signed by the parties hereto.

 

 

[Balance of this
page intentionally left blank]

 

17

 

IN WITNESS WHEREOF, the
parties hereto have executed this License as of the date first stated above.

 

 

	
   

  	
  BANK OF
  AMERICA, N.A., a national banking association

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Tracy J. Grooms

  	
   

  
	
   

  	
  Its:

  	
  Senior Vice President

  
	
   

  	
  Printed Name:

  	
  Tracy J. Grooms

  
	
   

  	
   

  	
   

  
	
   

  	
  THE FIRST MARBLEHEAD
  CORPORATION, a Delaware corporation

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Jack L. Kopnisky

  	
   

  
	
   

  	
  Its:

  	
  Chief Executive Officer

  
	
   

  	
  Printed Name:

  	
  Jack L.
  Kopnisky

  
					

 

18

 

Schedule A

 

Marks

 

 

Education Maximize

 

19

 

EXHIBIT B TO
UMBRELLA AGREEMENT

 

 

[Intentionally
omitted; the registrant is not a party to the loan origination agreement]

 

20

 

EXHIBIT C TO
UMBRELLA AGREEMENT

 

 

[Filed as exhibit
10.2 to the registrant’s quarterly report on Form 10-Q

for the quarterly
period ended March 31, 2006]

 

21

 

EXHIBIT D TO
UMBRELLA AGREEMENT

 

 

[Form of template
provides for reporting of delinquency aging

and number of
claims]

 

22

 

EXHIBIT E TO
UMBRELLA AGREEMENT

 

[Intentionally
omitted; the registrant is not a party to the guaranty agreement]

 

23Exhibit 10.2

 

EXECUTION COPY

 

Confidential Materials omitted and
filed separately with the

Securities and Exchange Commission. Asterisks denote omissions.

 

NOTE PURCHASE AGREEMENT

 

BANK OF AMERICA DTC PROGRAM

 

BANK OF AMERICA, N.A.

 

This
Note Purchase Agreement (“Agreement”),
by and between BANK OF AMERICA, N.A. (“Program
Lender”), a national banking association organized under the laws of
the United States and having a principal office located at 100 North Tryon
Street, Charlotte, North Carolina, and THE FIRST MARBLEHEAD CORPORATION, a
Delaware corporation having a principal place of business at 30 Little Harbor,
Marblehead, Massachusetts (“FMC”),
is amended and restated in full as of April 1, 2006 (“Effective Date”);

 

W I T N E S S E T H:

 

WHEREAS,
Program Lender is in the business of making education loans under education
lending programs, including, without limitation, the Bank of America DTC
Program (as defined in Section 1); and

 

WHEREAS,
FMC exists to provide funds for education loans for the benefit of students at
Participating Institutions (as defined in Section 1); and

 

WHEREAS,
in order to facilitate funding of Bank of America DTC Loans (as defined in
Section 1), Program Lender has agreed to sell, from time to time, pools
containing Bank of America DTC Loans originated by Program Lender to FMC or a
Purchaser Trust (as defined in Section 1); and

 

1

 

WHEREAS,
the Bank of America DTC Loans are made by Program Lender and purchased by FMC
on the condition that they qualify for and in fact are covered by a guaranty
issued by The Education Resources Institute, Inc. (“TERI”).

 

WHEREAS,
the Program Lender and FMC are parties to a Note Purchase Agreement dated as of
June 30, 2003, as amended to date (the “Original
Note Purchase Agreement”). The parties desire to amend, restate and
replace in full the Original Note Purchase Agreement with this Agreement.

 

NOW, THEREFORE, in consideration of
these presents and the covenants contained herein, the parties hereto hereby
agree as follows:

 

I.              Definitions. Capitalized terms used
herein without definition have the meanings set forth in the Program
Guidelines.

 

“Affiliate” shall mean, as to any person,
any other person that, directly or indirectly, is in control of, is controlled
by, or is under common control with, such person. A person shall be deemed to
control another person if the controlling person possesses, directly or
indirectly, the power to direct or to cause the direction of the management and
policies of the other person, whether through the ownership of voting
securities, by contract or otherwise.

 

“Agent” means U.S. Bank, N.A., or a
successor agent under the Deposit and Security Agreement.

 

“Ambac” means Ambac Assurance Corporation.

 

“BAGEL Note Purchase Agreement” shall mean
the agreement of same name between FMC and Program Lender dated as of April 30,
2001.

 

“BAGEL Seasoned Loans” shall mean all loans
that fall within the definition of “Seasoned
Loan” as set forth in the BAGEL Note Purchase Agreement.

 

2

 

“Bank of America DTC Loans” shall mean
Loans (a) made in accordance with and conforming to the requirements of the
Program Guidelines at the time the Loans were made, (b) serviced by the
Servicer in accordance with the Program Guidelines, (c) covered by and subject
to all the benefits of the Guaranty Agreement, and (d) marketed with the
Education Maximizer Mark.

 

“Bank of America DTC Loan Pool” or “Pool” shall mean and refer to a group of
Bank of America DTC Notes purchased and pledged or intended to be purchased and
pledged as collateral in a particular Securitization Transaction.

 

“Bank of America DTC Notes” shall mean
notes or other forms of consumer debt instruments, evidencing Bank of America
DTC Loans.

 

“Bank of America DTC Program” shall mean
the Bank of America DTC Loan Program described in the Program Guidelines.

 

“Bond Insurer” means Ambac, MBIA, or any
other provider of credit insurance or note insurance with respect to the
obligations of the Purchaser Trust.

 

“Business Day” shall mean any day other
than: (a) a Saturday or Sunday, or (b) a day on which national banking
institutions in the State of North Carolina are required or authorized by law
or executive order to be closed.

 

“Co-lender Indemnification Agreement”
means the form of Agreement attached hereto as Exhibit C.

 

“Collateral” has the meaning set forth in
the Deposit and Security Agreement.

 

“Deposit
and Security Agreement” means the agreement of that name
among Program Lender, Agent, FMC and TERI dated as of June 30, 2003.

 

3

 

“Depositor” shall mean the depositor, as
such term is defined in Regulation AB, with respect to a Securitization
Transaction.

 

“Education Maximizer Mark” shall mean the
Education Maximizer mark owned by the Program Lender and licensed to FMC under
the Education Maximizer License Agreement.

 

“Education Maximizer License Agreement”
shall mean the license agreement between FMC and Program Lender as defined in
the Umbrella Agreement.

 

“First Marblehead” or “FMC” shall mean The First Marblehead
Corporation, a Delaware corporation.

 

“First Payment Date” means the date when
the first monthly payment is due with respect to a particular Bank of America
DTC Loan.

 

“Guaranty Agreement” means the Guaranty
Agreement between Program Lender and TERI dated June 30, 2003, as it may be
amended from time to time.

 

“Market Disruption Event” means any of the
following: (a) any suspension or limitation on trading in securities generally
on the New York Stock Exchange or the National Association of Securities
Dealers National Market system; (b) any banking moratorium declared by federal,
Massachusetts, or New York authorities or authorities of the state in which
Program Lender is headquartered; (c) any outbreak or escalation of major
hostilities or armed conflict, or any declaration of war by Congress; (d) any
change in federal or state law or regulations that disrupts the functioning of
the capital markets; (e) the closing of the market for commercial paper or
asset-backed securities or significant disruption in the functioning of those
markets, if, in the reasonable judgment of FMC, the effect of any such event in
(a) – (e) above materially affects

 

4

 

FMC’s ability to
economically complete a Securitization Transaction; or (f) the occurrence of a
TERI Insolvency Event.

 

“MBIA” means MBIA Insurance Corporation.

 

“Minimum Purchase Price” has the meaning
set forth in Section 2.04.

 

“Loan Origination Agreement” refers to the
Loan Origination Agreement, dated as of June 20, 2003, with respect to
origination of Bank of America DTC Loans, as amended from time to time.

 

“Origination
Records” means and refers to the original Bank of America DTC
Loan Application and Note, a form of cosigner notice when required under 16
C.F.R. § 444, and any other standardized documentation specified from time to
time in the Program Guidelines as required to be received by the Servicer from
the Program Lender in order to service Bank of America DTC Loans adequately and
accurately.

 

“Participating Institution” means an
educational institution approved by TERI for receipt of Bank of America DTC
Loan funds.

 

“PHEAA” shall mean the Pennsylvania Higher
Education Assistance Agency, a public corporation and government
instrumentality organized under the laws of the Commonwealth of Pennsylvania,
and having an address at 1200 North Seventh Street, Harrisburg, PA 17102.

 

“Pledged Account” has the meaning set
forth in the Deposit and Security Agreement.

 

“Program Guidelines” means Appendix E to
the Program Manual (as defined in the Umbrella Agreement.

 

“Purchase Date” shall mean (a) the date of
consummation of a Securitization Transaction with respect to a particular Pool
of Seasoned Loans originated by Program Lender, which date:  (i) shall be set by written notice from FMC
to Program Lender, given to Program

 

5

 

Lender not less than five
(5) Business Days in advance of the specified date, and (ii) shall occur [**]
(including any extension thereof) for each loan in such Pool in question, or
(b) the date on which FMC or a designee Purchaser Trust purchases a Bank of
America DTC  Loan during the Right of
First Refusal Period.

 

“Purchase Period” means, with respect to
any particular Bank of America DTC Loan, the period beginning on the first date
such loan becomes a “Seasoned Loan”
and ending [**] days thereafter, as same may be extended pursuant to the terms
of this Agreement; provided, however, for loans in pricing tiers [**] on
Schedule 3.3 to the Guaranty Agreement, Purchase Period means, with respect to
any such loan, the period beginning on the first date such loan becomes a
Seasoned Loan and ending [**] days thereafter.

 

“Purchaser Trust” shall mean and refer to
a trust or other SPE formed or sponsored by FMC or by any Affiliate of FMC for
the purpose of purchasing, directly or indirectly, Bank of America DTC Loans. Any
action required or permitted to be taken by FMC hereunder may be taken by a
Purchaser Trust with respect to a particular Pool, and FMC may assign its
rights hereunder to a Purchaser Trust without the consent of the Program
Lender. If FMC elects to finance the purchase of such Loans on an interim basis
by using an SPE or any other temporary financing vehicle as an interim holder,
(i) the term Purchaser Trust shall include both such interim holder and any
other SPE to whom the Loans are ultimately transferred in a Securitization
Transaction; and (ii) the representations, warranties and indemnities made by
the Program Lender to FMC hereunder shall pass directly to both the interim
holder and the ultimate purchaser SPE.

 

“Rating Agencies” shall mean and refer to
Standard and Poor’s Corporation and/or Moody’s Investors Service, Inc., and/or
Fitch Investors Services.

 

6

 

“Regulation AB” means Subpart
229.1100—Asset Backed Securities (Regulation AB), 17 C.F.R. Sections
229.1100-229.1123, as such may be amended form time to time, and subject to
such clarification and interpretation as have been provided by the SEC in the
adopting release (Asset-Backed Securities, Securities Act Release No 33-8518,
70 Fed. Reg. 1,506, 1,531 (Jan. 7, 2005)) or by the staff of the SEC, or as may
be provided by the SEC or its staff from time to time.

 

“Right of First Refusal Period” means for
a Bank of America DTC Loan, the earlier of (i) [**] days after expiration of
the relevant Purchase Period or (ii) [**] days after notice that a bona fide
written offer has been received by Program Lender under Section 2.02 with
respect to such Bank of America DTC Loan, provided that no such notice may be
given until after expiration [**].

 

“Seasoned Loan” means a Bank of America
DTC Loan as of fifteen (15) days after completion of all scheduled
disbursements on the Bank of America DTC Loan, but shall exclude any loan
disbursed by paper check if the paper check has not yet been paid by the
drawee. In the event a disbursement check is paid by the drawee more than
thirty (30) days after it is written, the loan shall become a Seasoned Loan on
the date of such payment. For purposes of computation of the Minimum Purchase
Price, the term also includes defaulted Bank of America DTC Loans not yet
purchased by TERI.

 

“SEC” shall mean the Securities and
Exchange Commission.

 

“Securitization Costs” means the actual
costs and expenses incurred by FMC, the Purchaser Trust, and all others
entitled to payment for expenses by the Purchaser Trust or FMC, in connection
with a Securitization Transaction including, without limitation, the following:

 

(Structuring
and Origination Fees; Copy/Binding Costs)

 

7

 

(Underwriting
Expenses)

(Rating
Fee)

(Owner
Trustee and Indenture Trustee Transaction and First Year Fees; Expenses)

(Counsel
for Indenture Trustee)

(Counsel
for FMC)

(Servicer
Auditor)

(Bond
Insurer)

 

“Securitization
Transaction”
shall mean and refer to the purchase of a Pool of Seasoned Loans by FMC or a
Purchaser Trust funded through the issuance and sale of commercial paper,
certificates, bonds or other securities or evidences of indebtedness, the
repayment of which is supported by payments on the Seasoned Loans included in
such Pool. A Securitization Transaction may include, without limitation, a
continuing series of transactions occurring on a periodic basis in which
Program Lender makes a sale of then-outstanding Seasoned Loans to a Purchaser
Trust, which Purchaser Trust in turn either utilizes the Pool directly as
collateral for its own debt or resells the Pool (in whole or in part) in
further sales to a securitization conduit providing financing to the Purchaser
Trust or to another Purchaser Trust that issues financial instruments.

 

“Servicer” shall mean and refer to PHEAA,
or such other servicer as may be approved by FMC and TERI and retained by the
holder of Bank of America DTC Loans in accordance with the terms hereof and of
the Guaranty Agreement.

 

“Servicing Agreement” refers to: (a) the
Servicing Agreement entered into between Servicer and Program Lender with
respect to servicing of Bank of America DTC Loans, as amended from time to
time, and (b) any subsequent servicing agreement between Program Lender and the
Servicer governing servicing of Bank of America DTC Loans purchased under this
Agreement, in either case such agreement and any amendment thereto to be
satisfactory in form and substance to FMC and its counsel.

 

8

 

“SPE” means a special purpose entity formed
and operated for the purpose of acting as purchaser and owner of Bank of
America DTC Loans and other education loans.

 

“TERI Insolvency Event” means (1) the
commencement by TERI of a voluntary petition under the federal bankruptcy laws,
as now constituted or hereafter amended, or any other applicable federal or
state bankruptcy, insolvency or other similar laws, (2) the consent by TERI to
the appointment of or taking possession by a receiver, liquidator, trustee,
custodian (or other similar official) of or for TERI or for any substantial
part of its property, (3) the making by TERI of any assignment for the benefit
of creditors, (4) the insolvency or the failure of TERI generally to pay its
debts as such debts become due, (5) the downgrading of TERI’s credit worthiness
below the rating on January 2, 2003 or the placement of a negative watch on
TERI by one of the Rating Agencies, or (6) a default under one or more Guaranty
Agreements to which TERI is a party because of a failure to pay claims, or the
taking of action by TERI in furtherance of any of the foregoing.

 

“Term” shall mean the period commencing on
the Effective Date hereof and ending upon termination hereof, all as set forth
in Article X.

 

“Total Principal Amount” means the total
principal amount of Seasoned Loans available to be sold and purchased from
Program Lender plus the total principal amount of all BAGEL Seasoned Loans
available to be sold and purchased from Program Lender.

 

“Trust Agreement” means, with respect to
any particular Securitization Transaction, the agreement pursuant to which a
Purchaser Trust is formed.

 

“Trust Indenture” means, with respect to
any particular Securitization Transaction, the agreement pursuant to which FMC
or a Purchaser Trust issues evidences of indebtedness secured by the payments
on the related Bank of America DTC Loans.

 

9

 

“Umbrella Agreement” shall mean that
certain agreement of same name between Program Lender and FMC of even date.

 

II.            Agreement for Purchase and Sale of Notes.

 

2.01.        Purchase
and Sale.

 

[**]
during the Term of this Agreement and subject to the conditions set forth
herein, Program Lender shall sell to FMC or a designee Purchaser Trust, and FMC
or such Purchaser Trust shall purchase, every Seasoned Loan owned by Program
Lender on the Purchase Date.

 

2.02.        Pre-Closing
Information; FMC Purchase.

 

 (a)          Loan
Information. Program Lender will cause Servicer to inform FMC periodically
of information reasonably requested by FMC in anticipation of a Securitization
Transaction, including, without limitation, the number of Seasoned Loans ready
for purchase, the amount of paid and unpaid principal and accrued interest with
respect to each such Seasoned Loan, payment status (including defaulted loans
presented for guaranty payment), and the identity of Participating Institutions
affected by the Securitization, together with the information contained in
PHEAA’s MR-50 and MR-53 reports and TERI’s weekly origination report, which
reports shall be provided in electronic media in the Servicer’s or TERI’s standard
format. FMC hereby agrees and covenants to hold information contained in the
reports confidential and only use such information in accordance with Section 6
of the Umbrella Agreement.

 

(b)           Purchase
Scheduling. FMC will [**] specify Purchase Dates that fall within each
November and each June, but in any event will, subject to Sections 2.02(d) and
3.01(b), purchase or cause a Purchaser Trust to purchase [**] all of the
Seasoned Loans held by Program Lender prior to the expiration [**] for any loan
in the Pool (i.e., at least once every [**]). FMC shall have the sole and
exclusive right to purchase such Seasoned Loans [**], which right may be

 

10

 

assigned to one or more
Purchaser Trusts. FMC may reschedule the Purchase Date without penalty of any
kind, provided that the Purchase Date occurs prior to [**] (i.e., before any
Seasoned Loan then held by Program Lender has been seasoned for [**]. The [**]
with respect to any Seasoned Loan may be extended due to lack of volume as set
forth in Section 2.02(d) or for a failure to comply with one or more conditions
as set forth in Section 3.01(b). Program Lender agrees, in consideration of FMC’s
undertaking pursuant to this section, not to sell or offer to sell to any third
person any interest in any Seasoned Loan originated by Program Lender [**] with
respect to such Seasoned Loan. During [**], if Program Lender receives any bona
fide third-party written offer to purchase such Seasoned Loan, and if Program
Lender desires to accept such offer, Program Lender shall, prior to accepting
any such offer, provide a certificate of an officer of Program Lender,
certifying to the terms of same to FMC, and FMC (or a Purchaser Trust) shall
have the sole and exclusive right to purchase such Seasoned Loan on the terms
of such third-party offer [**] for such Seasoned Loan. If FMC (or a Purchaser
Trust) fails to exercise such right [**] with respect to such Seasoned Loan,
Program Lender shall within its sole discretion be entitled to: (i) sell such
Seasoned Loan to any third party or to retain such Seasoned Loan, in whole or
in part, for its own account, free and clear of any claim under this Agreement;
and/or (ii) immediately terminate this Agreement.

 

(c) Securitization and
Purchase Commitment Based Upon Volume. In the event that the Total
Principal Amount held by Program Lender is:

 

(1) Less than [**]
Dollars ($[**]), FMC will [**] purchase or cause the purchase of the Seasoned
Loans in a Securitization Transaction, but will have no obligation to do so if
FMC is unable to do so [**].

 

11

 

(2)
Greater than [**] Dollars ($[**]) but less than [**] Dollars ($[**]), FMC shall
purchase or cause the purchase of all Seasoned Loans; provided, however, that
such obligation shall be effective only if lenders whose loans aggregate [**]
Dollars ($[**]) or more in principal amount agree to have their loans included
in the same Securitization Transaction (FMC shall [**] under this Section
2.02(c)(2) to cause lenders to permit the addition of Seasoned Loans in a
Securitization Transaction).

 

(3)
Greater than [**] Dollars ($[**]), FMC shall purchase or cause the purchase of
all Seasoned Loans in a Securitization Transaction.

 

(d)           Extension
of Purchase Period Due to Lack of Volume. In the event that the volume
conditions (set forth in Section 2.02(c)) for a binding purchase commitment are
not satisfied, FMC may, but need not, declare [**] with respect to each Bank of
America DTC Loan that is then a Seasoned Loan extended by [**] days. FMC may
continue to declare such extensions, in its discretion, until the earlier of:
(a) the date when such volume conditions have been satisfied or (b) the date
this Agreement expires or is terminated (in which event FMC shall schedule a
Purchase Date for all outstanding Bank of America DTC Loans, to occur [**] for
the last loan made subject to this Agreement; provided, however, that if
this Agreement is terminated under subsection 2.02(b)(ii) on account of FMC’s
failure to purchase Seasoned Loans, then Program Lender shall not be required
to sell loans hereunder and shall have recourse to its remedies under Section
2.02(e)).

 

(e)           Damages
from Failure to Purchase. If FMC or a Purchaser Trust fails to purchase
within a Purchase Period (as the same may be extended pursuant to Section
2.02(d)) one or more Seasoned Loans prior to the end of the Purchase Period
with respect to such Loans, to the extent such failure is not excused under
Section 3.01(b), FMC shall pay to Program Lender as

 

12

 

liquidated damages [**]
of the Total Principal Amount of all Seasoned Loans as to which the Purchase
Period has expired; provided, however, that if FMC pays said [**] liquidated
damages amount and Program Lender subsequently sells the Seasoned Loans in
question to FMC, a Purchaser Trust or any third party during the Right of First
Refusal Period, the [**] liquidated damages amount shall be refunded to FMC to
the extent the sum of (i) the [**] liquidated damages amount and (ii) the total
amount received by Program Lender for such Seasoned Loans exceeds the Minimum
Purchase Price (as defined in Section 2.04 and computed as of the actual
purchase date). If a failure to purchase is continuing, additional damages may
become payable at thirty (30)-day intervals as the Purchase Period expires as
to additional loans. Such payments shall constitute liquidated damages in full
satisfaction of FMC’s obligations with respect to the purchase of such Seasoned
Loans, and FMC shall have no further liability to Program Lender with respect
thereto. Once the Right of First Refusal Period for a Bank of America DTC Loan
has expired, Program Lender shall be under no further obligation to offer such
Bank of America DTC Loan to FMC (or a Purchaser Trust) for purchase.

 

(f)            FMC
Reliance on Program Guidelines. Program Lender further agrees, in
consideration of FMC’s undertaking pursuant to this section, that no change
will be made in either the Program Guidelines or the interest rate and terms,
as well as other consumer loan terms and conditions of Bank of America DTC
Loans without FMC’s prior written consent, which consent shall not be
unreasonably withheld.

 

(g)           Purchaser
Trust Involvement. Any action required or permitted to be taken by FMC
hereunder may be taken by a Purchaser Trust with respect to a particular Pool,
and FMC may assign its rights hereunder to a Purchaser Trust without the
consent of the Program Lender. If FMC elects to finance the purchase of such
Loans on an interim basis by using an SPE or any

 

13

 

other temporary financing
vehicle as an interim holder, (i) the term Purchaser Trust shall include both
such interim holder and any other SPE to whom the Loans are ultimately
transferred in a Securitization Transaction; and (ii) the representations,
warranties and indemnities made by the Program Lender to FMC hereunder shall
pass directly to both the interim holder and the ultimate purchaser SPE.

 

(h)           Notwithstanding
Section 2.02(b) and (e), with respect to Bank of America DTC Loans in pricing
tiers [**] in Schedule 3.3 to the Guaranty Agreement (“Lower Tier Loans”), FMC shall specify a
Purchase Date to purchase or cause a Purchaser Trust to purchase within the
Purchase Period each and every Seasoned Loan held by Program Lender that is a
Lower Tier Loan. FMC shall have the sole and exclusive right to purchase all
Lower Tier Loans during the Purchase Period, which right may be assigned to one
or more Purchaser Trusts. FMC may reschedule the Purchase Date without penalty
of any kind, provided that the Purchase Date occurs prior to [**] for each
Seasoned Loan. The [**] with respect to any Lower Tier Loan that is a Seasoned
Loan may be extended for a failure to comply with one or more conditions as set
forth in Section 3.01(b). Program Lender agrees, in consideration of FMC’s
undertaking pursuant to this section, not to sell or offer to sell to any third
person any interest in any Lower Tier Loan, except as set forth herein. In the
event that FMC (or a Purchaser Trust) shall fail to purchase any Lower Tier
Loan [**] then Program Lender shall be entitled to sell such Lower Tier Loan to
any third party or to retain such Lower Tier Loans, in whole or in part, for
its own account free and clear of any claim under this Agreements. In the event
that Program Lender elects to sell such Lower Tier Loans to a third party, FMC
shall pay to Program Lender the Lesser of (i) [**]% of the total principal
amount of all Lower Tier Loans [**], or (ii) the amount

 

14

 

by which [**] such Lower
Tier Loans exceeds the [**] for such Seasoned Loans in a sale to a third party.
Such payments by FMC shall [**] with respect to the purchase of such Lower Tier
Loans.

 

2.03.        Pool
Supplement.

 

Each
purchase and sale of the Seasoned Loans included in a Pool on a Purchase Date
shall be made pursuant to a Pool Supplement substantially in the form of Exhibit
A which shall: (1) set forth the Minimum Purchase Price for the Seasoned
Loans included in the Pool, (2) incorporate by reference the terms and
conditions of this Agreement applicable to sales of Bank of America DTC Loans,
and (3) include a schedule of Seasoned Loans setting forth the details and
characteristics of each such Seasoned Loan included in the Pool. Each Pool
Supplement shall be executed by an authorized agent of each Purchaser Trust and
the Program Lender and shall be delivered on the related Purchase Date. The
Purchaser Trust shall provide a preliminary settlement sheet in the form of
Schedule 1 to the Pool Supplement not less than two (2) Business Days prior to
the Purchase Date.

 

2.04.        Minimum
Purchase Price.

 

On the
Purchase Date, Program Lender shall assign and convey all Seasoned Loans
included in the Pool to FMC, or a Purchaser Trust, in consideration of receipt
of the Minimum Purchase Price therefor. For purposes of this Agreement the term
“Minimum Purchase Price” shall
mean the sum of:

 

(a)         The
unpaid principal amount [**] of the Seasoned Loans in the Pool; plus

 

(b)           All
accrued and unpaid interest on such Bank of America DTC Loans, in accordance
with the terms of the Bank of America DTC Notes [**]; plus

 

15

 

(c)           All
fees paid by the Program Lender to TERI with respect to such Bank of America
DTC Loans [**]; plus

 

(d)           The
amount of any Guaranty Fees [**] plus

 

(e)           A
marketing fee and loan premium, [**]:

 

1.             With
respect to K-12 Creditworthy Loans, [**]%;

 

2.             With
respect to Continuing Education Creditworthy Loans, [**]% [**] and [**]% [**];

 

3.             With
respect to Undergraduate Creditworthy Loans, [**]% [**],[**]% [**]; [**]% [**];
and [**]% [**]; and

 

4.             With
respect to Graduate Creditworthy Loans, [**]% [**]; [**]% [**]; [**]% [**]; and
[**]% [**].

 

2.05       Volume
Incentive. If, during any calendar year during the term of this Agreement,
the total principal amount [**] of Bank of America DTC Loans disbursed
hereunder during such year exceeds [**] dollars ($[**]), then the premiums to
be paid pursuant to Section 2.04 of this Agreement with respect to “Undergraduate Creditworthy Loans” and “Graduate Creditworthy Loans” shall be
increased by [**]%) (the “Additional Volume
Premium”). Such increase in premium under Section 2.04 shall take
effect with respect to loans made available for sale hereunder during the next
calendar year. The increased premium shall terminate at the end of any calendar
year in which the total principal amount [**] of Bank of America DTC Loans
disbursed hereunder does not exceed [**] dollars ($[**]), but shall be
reinstated if the above requirements are met in any subsequent calendar year
during the Term of this Agreement. The Additional Volume premium shall not be
cumulative. For example, in the event that the total principal amount [**] of
Bank of America DTC Loans disbursed hereunder during

 

16

 

calendar years 2006 and
2007 exceeds [**] dollars ($[**]), there will be [**]%) increase for Seasoned
Loans purchased in calendar year 2007 and 2008 and no additional [**]%)
increase for Seasoned Loans purchased in calendar year 2008.

 

2.06       Transition.
The changes to the Original Note Purchase Agreement effected hereby, including,
without limitation, the new prices and payments contained herein, shall be effective
with respect to Bank of America DTC Loans the applications for which were
received by Program Lender (or its processing agent) on or after April 1, 2006.

 

III.           Procedures and Conditions for Transfer.

 

3.01.        Conveyances
of Bank of America DTC Loans; Conditions to Purchase.

 

(a)           On
each Purchase Date, upon execution and delivery of the related Pool Supplement,
Program Lender shall sell, transfer, assign, set over and otherwise convey to
FMC or the Purchaser Trust, without recourse, all right, title and interest of
Program Lender in and to:

 

(1)           The
Seasoned Loans included in the related Pool originated by Program Lender and
all payments due or to become due thereon;

 

(2)           Any claims
against TERI and proceeds of such claims with respect to origination of the
Seasoned Loans included in the Pool;

 

(3)           Any claims
against Servicer with respect to servicing of the Seasoned Loans prior to the
Purchase Date.

 

(4)           The
proceeds of any and all of the foregoing received after the Purchase Date or
received prior thereto and not credited against the Minimum Purchase Price as
computed on the Purchase Date; and

 

17

 

(5)           All rights
of Program Lender under the Guaranty Agreement with respect to the Seasoned
Loans in the Pool.

 

(b)           The
obligation of FMC and/or any Purchaser Trust to purchase the Seasoned Loans on
the related Purchase Date shall be subject to satisfaction of the following
conditions (any of which may be waived by FMC or such Purchaser Trust, in whole
or in part in its sole discretion):

 

(1)           Program
Lender shall have delivered to the Purchaser Trust a duly authorized and
executed Pool Supplement;

 

(2)           Each of
the representations and warranties made by Program Lender with respect to the
Seasoned Loans included in such Pool shall be true and correct in all material
respects as of the related Purchase Date;

 

(3)           The Loan
Origination Agreement and Servicing Agreement shall be in full force and effect
as of the Purchase Date and shall not have been modified except with the
express prior written consent of FMC and Program Lender;

 

(4)           (a)
Program Lender shall have performed and observed the terms and conditions of
this Agreement in all material respects;

 

(b)
Program Lender and TERI shall have performed and observed the terms and
conditions of the Loan Origination Agreement in all material respects and there
shall not have occurred a default thereunder;

 

(c)
Program Lender and Servicer shall have performed and observed the terms and
conditions of the Servicing Agreement in all material respects and there shall
not have occurred a default thereunder;

 

18

 

(5)           Program
Lender shall have complied with the provisions of the Umbrella Agreement
applicable to the Seasoned Loans included in the Pool;

 

(6)           The
Seasoned Loans to be purchased shall have been originated and serviced in
conformity with the Program Guidelines in all material respects and shall be
covered by the Guaranty Agreement;

 

(7)           If
requested by FMC, TERI shall have executed and delivered a confirmation of
guaranty in the form of a Certificate of Guaranty, covering all Seasoned Loans
being purchased, for the benefit of the Purchaser Trust and the indenture
trustee in the Securitization Transaction;

 

(8)           The Agent,
acting pursuant to the Deposit and Security Agreement, shall have transferred
to the indenture trustee in the Securitization Transaction the portion of the
Pledged Account and the Collateral specified in Section 4 of the Deposit and
Security Agreement;

 

(9)           If required
by any other lender whose loans are included in the Securitization Transaction,
the Program Lender shall have executed and delivered a Co-Lender
Indemnification Agreement substantially in the form of Exhibit B;

 

(10)         Program
Lender shall, at its own expense, on or prior to the Purchase Date, indicate in
computer files relating to Bank of America DTC Loans that the Seasoned Loans
identified in the related Pool Supplement have been sold to the Purchaser Trust
pursuant to this Agreement and such Pool Supplement;

 

19

 

(11)         Program
Lender hereby authorizes the filing of a UCC-1 financing statement with respect
to the Seasoned Loans included in such Pool in the appropriate office of the
jurisdiction in which the Program Lender is located (or, in the event of a
change of law, Program Lender shall have taken, but at no additional cost or
expense to the Program Lender, such action as may be reasonably required by the
Purchaser Trust);

 

(12)         As of such
Purchase Date: (i) Program Lender was not insolvent and will not become
insolvent as a result of the sale and transfer of Seasoned Loans on such
Purchase Date, (ii) Program Lender did not intend to incur or believe that it
would incur debts that would be beyond Program Lender’s ability to pay as such
debts matured, (iii) such transfer was not made with actual intent to hinder,
delay or defraud any Person, and (iv) Program Lender was “Well Capitalized,” as such term is
defined by the rules and regulations promulgated by the Office of the
Comptroller of the Currency as in effect on the Purchase Date;

 

(13)         In the
reasonable judgment of FMC, no Market Disruption Event has occurred; provided
that if satisfaction of the condition set forth in this Section 3.01(b)(13) is
the only outstanding condition to closing, FMC shall schedule a new Purchase
Date as soon as is reasonably practicable after the Market Disruption Event has
ceased; and

 

(14)         Program
Lender shall have delivered to counsel for FMC a Certificate substantially in
the form of Exhibit D attached hereto.

 

20

 

(c)           The
obligation of Program Lender to sell the Seasoned Loans included in the Pool on
a related Purchase Date is subject to satisfaction of the following conditions
(any of which may be waived by Program Lender in whole or in part, in its sole
discretion):

 

(1)           Purchaser
Trust shall have delivered to Program Lender a duly authorized and executed
Pool Supplement;

 

(2)           Purchaser
Trust shall have paid the Minimum Purchase Price to Program Lender by wire
transfer of immediately available funds within twenty-four (24) hours after the
Purchase Date (such Minimum Purchase Price shall be based on the best
information available from the Servicer as of the Purchase Date; no later than
thirty (30) days following the Purchase Date, the Purchaser Trust shall
recalculate the Minimum Purchase Price to reflect adjustments for transactions
(including, without limitation, additional accrued interest and payments
received), and whichever party is deemed to owe the other such adjustment shall
deliver such adjustment to such other party, by wire transfer of immediately
available funds);

 

(3)           FMC shall
have complied with the terms of the Umbrella Agreement applicable to the
Seasoned Loans included in the Pool and no default of FMC under the Umbrella
Agreement relating to any Seasoned Loan shall have materially impaired the
rights of the Program Lender in connection with the purchase and sale of the
Pool to be sold on the Purchase Date;

 

(4)           FMC and
Purchaser Trust shall have executed and delivered an Indemnification Agreement
substantially in the form of Exhibit C attached hereto, provided,
however, that an Indemnification Agreement shall not be

 

21

 

required
if FMC executes and delivers to Program Lender a certificate which states that
no Offering Materials (as defined in Exhibit C attached hereto) were
distributed or provided to any securities purchaser or prospective purchaser in
connection with the Securitization Transaction in question;

 

(5)           In the
event the subject Pool contains loans originated by persons and entities other
than Program Lender, and its designated agent (to the extent permitted under
the Umbrella Agreement), each such person and entity shall have delivered to
Program Lender a Co-Lender Indemnification Agreement;

 

(6)           If the
trustee or other fiduciary under the related Trust Indenture is not Wachovia
Trust Company, N.A., Program Lender shall have approved such trustee or fiduciary,
with such approval not to have been unreasonably withheld;

 

(7)           Program
Lender shall have received an opinion of Thatcher, Profitt & Wood or other
securities counsel to the Purchaser Trust and FMC, addressed to Program Lender
and satisfactory to Program Lender in form and substance. Such opinion shall,
with respect to any securities issued by the Purchaser Trust, state that
nothing has come to the attention of such counsel that would lead it to believe
that the Offering Materials (as defined in the Indemnification Agreement
attached hereto as Exhibit C) in connection with the matters described
therein contain any untrue statement of a material fact or omit to state a
material fact required to be stated

 

22

 

therein
or necessary to make the statements therein not misleading; provided, however,
that such securities counsel may except the B of A Information (as defined in Exhibit
C attached hereto) from the scope of its opinion, and further provided,
however, that such opinion shall not be required if FMC executes and
delivers to Program Lender a certificate which states that no Offering
Materials (as defined in Exhibit C attached hereto) were distributed or
provided to any securities purchaser or prospective purchaser in connection
with the Securitization Transaction in question; and

 

(8)           Purchaser
Trust assumes certain liabilities as set forth in Section 3.07 of this
Agreement.

 

3.02.        Delivery of Documents.

 

On the Purchase Date, Program Lender shall deliver
to the Servicer, as agent for the Purchaser Trust, and/or to the trustee of the
Trust Indenture, each Bank of America DTC Note evidencing a Seasoned Loan
included in the Pool and the related Origination Records. If a Co-Lender
Indemnification Agreement is required as a condition of FMC’s or any Purchaser
Trust’s obligations under Section 3.01(b) (8) hereof, Program Lender shall
execute and deliver a Co-Lender Indemnification Agreement to each lender
selling loans in the Securitization Transaction.

 

3.03.        Confirmation
of Representations and Warranties.

 

In
each Pool Supplement, Program Lender shall confirm and certify its
representations and warranties contained herein as if fully set forth in the
Pool Supplement.

 

23

 

3.04.        Rights
Transferred.

 

The
transfer of funds pursuant to Section 2.04 hereof shall constitute, and the
delivery to FMC, or its designated Purchaser Trust of each Pool Supplement
shall evidence, a sale and assignment to FMC or the Purchaser Trust of the
related Seasoned Loans and of all of Program Lender’s interest in such Seasoned
Loans. As purchaser of such Seasoned Loans, FMC or the Purchaser Trust shall
receive: (i) interest on such Seasoned Loans from and after the Purchase Date,
and (ii) any and all other payments and recoveries received by the Servicer or
Program Lender from the borrowers and co-signers of such Seasoned Loans, or
others pursuant to, or in respect of, such Seasoned Loans from and after the
Purchase Date, and all proceeds thereof.

 

3.05.        Subsequent
Receipts.

 

In the
event that Program Lender shall receive, subsequent to any such assignment, any
amounts whatsoever in respect to the Seasoned Loans so assigned in the nature
of those described in Section 3.04 above, such amounts shall be held by Program
Lender in trust for FMC or the Purchaser Trust to which it has sold the Notes,
and the Program Lender shall deliver such amounts within one (1) business day
to the trustee under the Trust Indenture.

 

3.06.        Assignment
of Origination Rights.

 

Program
Lender shall insure that Program Lender’s rights under the Servicing Agreement
and the Loan Origination Agreement with respect to any matters occurring prior
to the Purchase Date and affecting the Seasoned Loans included in each Pool shall
be transferred to FMC or the Purchaser Trust by execution and delivery of a
Pool Supplement. Program Lender shall require the party who originated each
such Seasoned Loan to complete any loan origination services being performed
for Program Lender on the Purchase Date so that complete Origination Records
are ready for transfer to the Purchaser Trust (or to Servicer on its behalf).

 

24

 

3.07.        No
Assumption of Liability to Fund Bank of America DTC Loan Notes.

 

By
their purchase of Seasoned Loans (and any related Bank of America DTC Notes),
neither FMC nor any Purchaser Trust, shall assume any liability, responsibility
or obligation with respect to any disbursements or reimbursements that are due
and owing, or which are, or may be alleged to be due and owing, by Program
Lender to any Seasoned Loan borrower by reason of the Seasoned Loans included
in the Pool and evidenced by the Bank of America DTC Notes. Notwithstanding the
foregoing, FMC or the Purchaser Trust shall assume from Program Lender any
liability to repurchase from TERI a defaulted Bank of America DTC Loan upon
cure of the default, with respect to any such Bank of America DTC Loan that
would be a Seasoned Loan but for such default and purchase by TERI. Such
repurchase obligation shall be governed by the Certificate of Guaranty
described in Section 3.01(b) (7), above. Such Certificate of Guaranty should be
substantially in the form of Exhibit C of the Guaranty Agreement.

 

3.08.        Servicing
and Origination Costs.

 

Program
Lender shall be solely responsible for and shall pay all costs due to any third
party from Program Lender (including, without limitation, amounts due to TERI
or Servicer) with respect to origination of Bank of America DTC Loans and with
respect to loan servicing of Bank of America DTC Loans incurred prior to
purchase of a Bank of America DTC Loan hereunder. FMC shall be solely
responsible for and shall pay any obligations it has incurred in connection
with the Bank of America DTC Loans and shall be solely responsible for
arranging and paying all costs for servicing of the Bank of America DTC Loans
after purchase of such Loans.

 

25

 

3.09.        Securitization
Costs.  FMC or the Purchaser Trust shall be solely responsible
for and shall pay any Securitization Costs and any and all obligations it has
incurred in connection with the purchase, financing of purchase and
securitization of the Seasoned Loans.

 

3.10.        Effect
of Loan Cancellations.  In the event that the Borrower cancels a
Seasoned Loan in a manner and at a time permitted under the Program Guidelines,
if that Seasoned Loan has already been purchased under this Agreement, Program
Lender will return to the Purchaser Trust all amounts received by it with
respect to such purchase. FMC shall prepare an accounting of all such
cancellations within thirty (30) days after the last date permitted for
cancellation of Seasoned Loans purchased on a particular Purchase Date.

 

IV.           Limitation of Obligations of FMC and
Purchaser Trust. [Intentionally Omitted.]

 

V.            Representations and Warranties.

 

5.01.        Representations
and Warranties of FMC.

 

FMC
makes the following representations and warranties as of the date hereof, as of
the date of each purchase of Seasoned Loans and as of any other date specified
below. FMC shall cause each Purchaser Trust to make substantially the same
representations and warranties in a Pool Supplement as of the date of each
purchase of Seasoned Loans:

 

(a)           FMC
represents and warrants that it is and shall remain a Delaware corporation duly
organized, validly existing and in good standing under the laws of the State of
Delaware, and has the requisite corporate authority to conduct all activities
and consummate all transactions contemplated by this Agreement.

 

(b)           FMC
has all requisite corporate power and authority to execute, deliver and perform
its obligations under this Agreement, and has duly authorized the execution,
delivery and performance of, and has duly executed and delivered this Agreement,
and this Agreement

 

26

 

constitutes the legal,
valid and binding obligation of FMC enforceable against FMC in accordance with
its terms, except that such enforceability may be limited by bankruptcy, insolvency,
reorganization or other similar laws.

 

(c)           Neither
the execution and delivery of this Agreement, the consummation of the
transactions contemplated hereby, nor the fulfillment of or compliance with the
terms and conditions hereof, will conflict with, or result in a breach of, or
constitute a default under, any of the terms, conditions or provisions of any
legal restriction or any agreement or instrument to which FMC is now a party or
by which it is bound.

 

5.02.        Representations
and Warranties of Program Lender.

 

Program
Lender makes the following representations and warranties as of the date
hereof, as of the date of each sale of Seasoned Loans to FMC or a Purchaser
Trust, and as of any other date specified below:

 

(a)           Program
Lender represents and warrants that it is, and shall continue to be, a national
banking association duly organized, validly existing and in good standing under
the laws of the United States, and has the requisite authority to conduct all
activities and consummate all transactions contemplated by this Agreement.

 

(b)           Program
Lender has all requisite power and authority to execute, deliver and perform
its obligations under this Agreement, and has duly authorized the execution,
delivery and performance of, and has duly executed and delivered this
Agreement, and this Agreement, together with each Pool Supplement executed
pursuant hereto, constitutes the legal, valid and binding obligation of Program
Lender enforceable against Program Lender in accordance with its terms, except
as such enforceability may be limited by (i) receivership, conservatorship and
supervisory powers of bank regulatory agencies generally, (ii) applicable
bankruptcy,

 

27

 

receivership,
conservatorship, insolvency, reorganization, moratorium or other similar laws
affecting creditors’ rights generally from time to time in effect, or (iii)
general principles of equity.

 

(c)           Neither
the execution and delivery of this Agreement, the consummation of the
transactions contemplated hereby, nor the fulfillment of or compliance with the
terms and conditions hereof, will conflict with, or result in a breach of, or
constitute a default under, any of the terms, conditions or provisions of any
legal restriction or any agreement or instrument to which Program Lender is now
a party or by which it is bound.

 

(d)           Each
of the Bank of America DTC Loans originated by Program Lender and sold to FMC
or a Purchaser Trust pursuant to any Securitization Transaction (i) is the
valid, binding and enforceable obligation of the borrower executing the same,
and of any cosigner thereto, duly and properly executed by each borrower, any
student maker named therein, and any cosigner thereunder, and enforceable
against each borrower, any student maker named therein, and any cosigner
thereunder in accordance with its terms except as enforceability may be
affected by bankruptcy, insolvency, moratorium or other similar laws affecting
the rights of creditors generally and by equitable principles, (ii) is covered by
and entitled to the benefits of the Guaranty Agreement, to the extent of 100%
of the principal thereof and accrued interest thereon, and (iii) is a Seasoned
Loan, fully disbursed with no further requirement for future advances
thereunder.

 

(e)           Each Bank of America DTC Loan was originated in the
United States of America, its territories, its possessions or other areas
subject to its jurisdiction by Program Lender, or its agents, in the ordinary
course of its business and was made to a borrower with legal capacity to
execute and deliver the Bank of America DTC Note under applicable law. Each
Bank of

 

28

 

America DTC Loan originated by Program Lender sold
hereunder and any accompanying notices and disclosures;

 

(i)            Conforms to all
applicable state and federal laws, rules and regulations, and

 

(ii)           Was documented
on forms set forth in the Program Guidelines, including without limitation, promissory note forms that

 

(A)          Require interest accrual
(whether or not such interest is being paid currently or is being capitalized)
and yield interest at the rate applicable thereto; and

 

(B)           Provide or, when the
payment schedule with respect thereto is determined, will provide for payments
on a periodic basis that fully amortize the principal amount of the Bank of
America DTC Loan by its maturity, as such maturity may be modified in
accordance with any applicable deferral or forbearance periods granted in
accordance with applicable laws and the Program Guidelines; and

 

(iii)          Contained
consumer loan terms and involved guaranty fees payable to TERI in strict
conformity with the Program Guidelines.

 

The
origination, servicing and
collection (if any) of each Bank of America DTC Loan was
conducted in accordance with;

 

(i)            The Program
Guidelines, including, without limitation, the requirements therein that

 

(A)          No loan be originated
for a dead borrower or a borrower involved in a bankruptcy proceeding.

 

29

 

(B)           At least one borrower
for each loan must be a United States citizen/national or a permanent resident
alien of the United States, and

 

(C)           The borrower must have
attained the age of majority at the time of the loan application, and

 

(ii)           And all
applicable state and federal laws including, without limitation, the Equal
Credit Opportunity Act.

 

No
application to Program Lender for a Bank of America DTC Loan shall be, or has
been, rejected, approved or discouraged by Program Lender on the basis of race,
sex, color, religion, national origin, age (other than laws limiting the
capacity to enter a binding contract) or marital status, the fact that all or a
part of the borrower’s or co-signer’s, income derives from any public
assistance program, or the fact that the applicant, borrower or any co-signer
has, in good faith, exercised any right under the Consumer Credit Protection
Act.

 

(f)            Each
Bank of America DTC Loan originated by Program Lender sold to FMC or Purchaser
Trust is in compliance with any applicable usury laws at the time made and as of the time of
assignment to FMC or a Purchaser Trust.

 

(g)           There
is no defense to payment, counterclaim, right of rescission or setoff with
respect to any Bank of America DTC Loan sold under this Agreement, and no fraud, error, omission,
misrepresentation, or similar occurrence with respect to any Bank of America
DTC Loan sold under this Agreement has taken place on the part of any party
involved in the origination of the Bank of America DTC Loan (including, without
limitation, fraud by the obligor under the Bank of America DTC Note.
There is no action before any state or federal court, administrative or
regulatory body, pending or threatened against Program Lender in which

 

30

 

an adverse result would have
a material adverse effect upon the validity or enforceability of Bank of
America DTC Loans originated by Program Lender and included in the Pool.

 

(h)           Each
and every Bank of America DTC Loan sold pursuant to this Agreement is owned by
Program Lender free and clear of any liens, claims or demands of any person,
and Program Lender has the absolute right to transfer the same to FMC or a
Purchaser Trust.

 

(i)            With
respect to each Bank of America DTC Note originated by Program Lender and
included in the Pool:  (A) the terms
thereof have not been impaired, waived, altered or modified in any respect,
except pursuant to written forbearance agreements in accordance with the
requirements of and in the terms set forth in the Program Guidelines, (B) the borrower is not entitled to any
refund, rebate, or reduction of any amounts paid or due except in accordance
with Section 3.10 hereof and the cancellation policy in the Program Guidelines,
and (C) such Bank of America DTC Note has been serviced at all
times in accordance with the Program Guidelines, including, without limitation the forms of promissory note
therein, and is held by the Servicer pursuant to the Servicing Agreement.

 

5.03.        Exclusive
Representations and Warranties.

 

The
representations and warranties set forth in Section 5.02 above are the sole and
exclusive representations and warranties made by the Program Lender, its
representatives, agents, officers, directors and other employees, with respect
to this Agreement, any Pool Supplement, any Bank of America DTC Loan, any
obligor, and the sale of any Bank of America DTC Loan to the Purchaser Trust
hereunder or otherwise. 

 

5.04.        Remedy
for Breach of Representations and Warranties.

 

In the
event any representation or warranty made by Program Lender pursuant to Section
5.02 above shall prove to be inaccurate or incomplete as of the date when made,
Program Lender

 

31

 

shall have the right (but
not the obligation) to elect by written notice to FMC to be given by Program
Lender no later than sixty (60) days after receipt of written notice from FMC
of such alleged breach to repurchase the affected Bank of America DTC Loan or
Loans no later than such sixtieth (60th) day for a cash purchase
price equal to the outstanding principal balance thereof plus all accrued and
unpaid interest. Upon receipt of said repurchase price, FMC shall, or, if
applicable, shall cause the Purchaser Trust or the Servicer to, immediately
deliver the Bank of America DTC Note and the Origination Records relating
thereto to Program Lender, duly endorsed or assigned to Program Lender or to
such person as Program Lender may direct, in any such case, without recourse to
FMC or the Purchaser Trust. Whether or not Program Lender exercises its right
of repurchase, Program Lender shall indemnify FMC, any Purchaser Trust and any
fiduciary under the Trust Agreement pursuant to Article VIII of this Agreement; provided, however, that if the
breach of the representation and warranty is due to fraud by the obligor under
the Bank
of America DTC Note,
(a) Program Lender shall repurchase the affected loan under this Section 5.04,
(b) Program Lender’s liability shall be limited to such repurchase (including
any marketing fee and loan premium previously paid to Program Lender for the
affected loan) and (c) the provisions of Article VIII of this Agreement shall
be inapplicable to the affected loan.

 

VI.           [Intentionally Left
Blank]

 

VII.          Miscellaneous.

 

7.01.        No
Assignment.

 

No
party may assign its rights or obligations under this Agreement without the
prior written consent of the parties hereto, provided, however,
that: (a) Program Lender may assign its rights hereunder to an Affiliate that
is a national banking association, state-chartered bank or other lender
having the legal power and right under applicable law (including, without
limitation,

 

32

 

usury law in the State
where it is located) to make Bank of America DTC Loans, and (b) FMC shall may
assign its rights hereunder to one or more Purchaser Trusts or other interim or
permanent holders of Bank of America DTC 
Loans. No assignment shall relieve the assignor of liability hereunder. Any
assignment in violation of this Section 7.01 shall be automatically null and
void.

 

7.02.        Amendment.

 

This
Agreement may not be amended nor terms or provisions hereof waived unless such
amendment or waiver is in writing and signed by all parties hereto.

 

7.03.        No
Waiver.

 

No
delay or failure by any party to exercise any right, power or remedy hereunder
shall constitute a waiver thereof by such party, and no single or partial
exercise by any party of any right, power or remedy shall preclude other or
further exercise thereof or any exercise of any other rights, powers or
remedies.

 

7.04.        Entire
Agreement.

 

This
Agreement and the documents and agreements referred to herein embody the entire
agreement and understanding among the parties hereto and supersede all prior
agreements and understandings relating to the subject matter hereof and
thereof.

 

7.05.        Notices.

 

All
notices given by any party to the others under this Agreement shall be in
writing delivered: (a) personally, (b) by facsimile transmission, (c) by
overnight courier, prepaid, or (d) by depositing the same in the United States
mail, certified, return receipt requested, with postage prepaid, addressed to
the party at the address set forth below. Any party may change the address to
which notices are to be sent by notice of such change to each other party given
as provided herein. Such notices shall be effective on the date received. Notices
shall be given as follows:

 

33

 

If to Program Lender:

 

Tracy J. Grooms

Senior Vice President

Bank of America, N.A.

Mail Code: NC1-002-15-26

Charlotte, NC 28255-0001

 

 

With a
copy to:

 

Laura L. Rogers

Assistant General Counsel

Bank of America, N.A.

800
Market Street

11th Floor

St. Louis, MO 63101

 

 

If to
FMC:

 

President

The
First Marblehead Corporation

34th
Floor

800
Boylston Street

Boston,
MA  02199-8157

 

 

With a
copy to:

 

Legal
Department

The
First Marblehead Corporation

34th
Floor

800
Boylston Street

Boston,
MA  02199-8157

Legal@FirstMarblehead.com

 

7.06.        Attorneys’
Fees.

 

In the
event of a lawsuit or arbitration proceeding arising out of or relating to this
Agreement, the prevailing party shall be entitled to recover costs and
reasonable attorneys’ fees

 

34

 

incurred in connection
with the lawsuit or arbitration proceeding, as determined by the court or
arbitrator.

 

7.07.        Governing
Law. This Agreement shall be governed by and construed in accordance with
the laws of North Carolina (without reference to choice-of-law rules).

 

7.08.        Counterparts.

 

This
Agreement may be executed in any number of counterparts, all of which
together shall constitute one agreement.

 

7.09.        No
Third Parties Benefited.

 

This
Agreement is made and entered into for the protection and legal benefit of the
parties, and their permitted successors and assigns (including, without
limitation, any Purchaser Trust), and each and every Indemnified Person (all of
which shall be entitled to enforce the Indemnity contained in Sections 8.01 and
8.02 hereof), and no other person shall be a direct or indirect legal
beneficiary of, or have any direct or indirect cause of action or claim in
connection with, this Agreement.

 

7.10.        Opinions.

 

Concurrent
with the execution hereof, each party shall deliver to the other the opinion of
its corporate counsel (which may be internal counsel) to the effect that
this Agreement has been duly authorized by all necessary corporate or other
organizational action, this Agreement is within the corporate or other
organizational power of such party and that this Agreement has been duly
executed and delivered by an authorized officer of the party.

 

35

 

VIII.        Indemnification.

 

8.01.        By
Program Lender.

 

Regardless
of the exercise or nonexercise of the repurchase right under Section 5.04,
Program Lender shall indemnify and hold harmless FMC, each Purchaser Trust and
any fiduciary under any Trust Indenture, and any officer, director, employee or
agent of any of the foregoing (herein, collectively referred to as the “Indemnified Persons”) against any and all
liabilities, losses, costs, damages and expenses, including, without
limitation, attorneys’ fees and legal expenses and sums paid, liabilities
incurred or expenses paid or incurred in connection with settling claims, suits
or judgments or obtaining or attempting to obtain release from liability under
the Trust Indenture or this Agreement which such Indemnified Person may sustain
or incur by reason of any uncured breach of any representation, warranty or
covenant of Program Lender contained herein; provided, further
that the foregoing indemnification shall also apply to a breach of
representation, warranty or covenant that has been cured, to the extent that
the cure in question did not reimburse the Indemnified Person for damages or
losses incurred on account of such breach prior to the date of such cure.

 

8.02.        By
FMC.

 

FMC or
the applicable Purchaser Trust, as the case may be, shall indemnify and
hold harmless Program Lender, its successors and permitted assigns and any
officer, director, employee or agent of Program Lender (herein, collectively
referred to as “Indemnified Persons”)
against any and all liabilities, losses, costs, damages, and expenses,
including, without limitation, attorneys’ fees and legal expenses and sums
paid, liabilities incurred or expenses paid or incurred in connection with
settling claims or judgments or obtaining or attempting to obtain release from
liability, which such Indemnified Person may sustain or incur by reason of
any uncured breach of

 

36

 

any representation,
warranty or covenant of FMC or the applicable Purchaser Trust, as the case may be,
contained herein; provided, further that the foregoing indemnification
shall also apply to a breach of representation, warranty or covenant that has
been cured, to the extent that the cure in question did not reimburse the
Indemnified Person for damages or losses incurred on account of such breach
prior to the date of such cure.

 

8.03.        Indemnity Procedures.

 

(a)           In
the event that any claim or demand for which an indemnifying party would be
liable to an Indemnified Person hereunder is asserted against or sought to be
collected from an Indemnified Person by a third party (an “Action”), the Indemnified Person shall
promptly notify the indemnifying party of such Action, specifying the nature of
such claim or demand and the amount or the estimated amount thereof to the
extent feasible (which estimate the parties agree shall not be conclusive of
the final amount of such claims and demand) (the “Claim Notice”). The failure to provide the Claim Notice to
the indemnifying party promptly will not relieve the indemnifying party of any
liability it may have to the Indemnified Person giving the Claim Notice,
except to the extent that the indemnifying party demonstrates that the defense
of such action is actually and materially prejudiced by the indemnifying party’s
failure to give such Claim Notice promptly. The indemnifying party shall have
ten (10) days from the delivery of the Claim Notice (the “Notice Period”) to notify the Indemnified
Person: (1) whether or not the indemnifying party disputes liability to
the Indemnified Person hereunder with respect to such claim or demand; and (2) notwithstanding
any such dispute, whether or not the indemnifying party desires, at its sole
cost and expense, to defend the Indemnified Person against such claim or demand
in which case the indemnifying party shall assume all past and future responsibility
for such action and shall reimburse the Indemnified Person for all expenses in
connection with the

 

37

 

Action. Notwithstanding
the assumption by the indemnifying party of the defense of any Action, the
Indemnified Person shall be permitted to participate in such defense at its
cost and expense. If the indemnifying person elects to defend the Indemnified
Person, notice shall be given within the Notice Period, then the indemnifying
party will have the right and obligation to defend the Indemnified Person by
appropriate proceedings, which shall be followed to a final conclusion.

 

(b)           If
the indemnifying party elects not to defend the Indemnified Person against such
Action, whether by not giving the Indemnified Person timely notice as provided
above, or otherwise, then the Action may be defended by the Indemnified
Person at the indemnifying party’s cost and expense (without imposing any
obligation on any Indemnified Person to defend any such claim or demand), in
which case it may defend such Action in such a manner as it may deem
appropriate (including settlement) and then that portion thereof as to which
such defense is unsuccessful, in each case, shall be conclusively deemed to be
a liability of the indemnifying party hereunder; provided that if the
indemnifying party shall have disputed its liability to the Indemnified Person
hereunder, then such determination or settlement shall not affect the right of
the indemnifying party to dispute the Indemnified Person’s claim for
indemnification.

 

(c)           In
the event an Indemnified Person should have a claim against the indemnifying
party hereunder that does not involve a claim or demand being asserted against
or sought to be collected from it by a third party, the Indemnified Person
shall promptly send a Claim Notice with respect to such claim to the
indemnifying party. If the indemnifying party disputes its liability with
respect to such claim or demand, the Indemnified Person shall have the right to
pursue all of its legal and equitable remedies against the indemnifying party
for indemnity hereunder.

 

38

 

8.04.        Payment. Upon the determination of
the liability under Section 8.03 hereof, the indemnifying party shall pay
to the Indemnified Person within ten (10) days after such determination,
the amount of any claim for indemnification made hereunder, subject to the
limitations set forth herein. Upon payment in full of any claim, either by set
off or otherwise, the entity making payment shall be subrogated to the rights
of the Indemnified Person against any Person, with respect to the subject
matter of such claim.

 

IX.           Dispute
Resolution

 

9.01.        Informal
Dispute Resolution.

 

Any
controversy or claim between the parties arising from or in connection with
this Agreement or the relationship of the parties under this Agreement whether
based on contract, tort, common law, equity, statute, regulation, order or
otherwise, and whether arising before or after the termination of this Agreement
(“Dispute”) shall be resolved as
follows:

 

(a)           Upon
written request of either party, the parties will each appoint a designated
representative within three (3) Business Days whose task it will be to
meet for the purpose of endeavoring to resolve such Dispute.

 

(b)           The
designated representatives shall meet beginning within five (5) Business
Days after the last representative is appointed as described above and shall
meet as often as the parties reasonably deem necessary to discuss the problem
in an effort to resolve the Dispute without the necessity of any formal
proceeding.

 

(c)           Arbitration
proceedings for the resolution of a Dispute under Section 9.02 may not
be commenced until the earlier to occur of the following:

 

(i)            The designated
representatives conclude in good faith that amicable resolution through
continued negotiation of the matter does not appear likely; or

 

39

 

(ii)           The expiration of the
thirty (30)-day period immediately following the initial request to negotiate
the Dispute.

 

9.02.        Arbitration.

 

If the provisions of Section 9.01 have been
satisfied, but the Dispute has not been resolved, then the Dispute shall be
settled pursuant to the following:

 

(a)           Any
controversy or claim between or among the parties arising out of or relating to
this Agreement or any agreements or instruments relating hereto or delivered in
connection herewith and any claim based on or arising from an alleged tort,
shall at the request of any party be determined by arbitration. The arbitration
shall be conducted in accordance with the United States Arbitration Act (Title
9, U.S. Code), notwithstanding any choice of law provision in this Agreement,
and under the Commercial Rules of the American Arbitration Association (“AAA”). The arbitrator(s) shall give
effect to statutes of limitation in determining any claim. Any controversy
concerning whether an issue is arbitrable shall be determined by the
arbitrator(s). Judgment upon the arbitration award may be entered in any
court having jurisdiction. The institution and maintenance of an action for
judicial relief or pursuit of a provisional or ancillary remedy shall not
constitute a waiver of the right of any party, including the plaintiff, to
submit the controversy or claim to arbitration if any other party contests such
action for judicial relief.

 

(b)           No
provision of this Section shall limit the right of any party to this
Agreement to exercise self-help remedies such as setoff, foreclosure against or
sale of any real or personal property collateral or security, or obtaining
provisional or ancillary remedies from a court of competent jurisdiction
before, after, or during the pendency of any arbitration or other proceeding. The
exercise of a remedy does not waive the right of either party to resort to
arbitration or reference.

 

40

 

(c)           Each
party shall bear its own costs and expenses and an equal share of the
arbitrator’s and administrative fees of arbitration.

 

9.03.        Permissible
Legal Proceedings.

 

Notwithstanding anything contained in Sections 9.01
and 9.02, (a) a party may institute legal proceedings to seek a
temporary restraining order or other temporary or preliminary injunctive relief
to prevent immediate and irreparable harm to such party, and for which monetary
damages would be inadequate, pending final resolution of the dispute,
controversy or claim pursuant to arbitration, and (b) a party may institute
legal proceedings if necessary to preserve a superior position with respect to
other creditors. Such conduct shall not constitute a waiver of the right of
either party to resort to arbitration to obtain relief other than that
specified in this Section 9.03.

 

X.            Term and Termination.

 

10.01.      Term
and Termination. This Agreement shall remain in full force and effect until
expiration or termination of the Umbrella Agreement. The provisions of the
following sections shall survive in perpetuity any termination of this
Agreement:

 

a.                                       Section 2(b) of
the Umbrella Agreement;

 

b.                                      As
to any Bank of America DTC Loan purchased hereunder, until such loan is repaid
in full, the representations and warranties contained in Article V of this
Agreement; and

 

c.                                       Article VIII
of this Agreement.

 

41

 

XI.           Facsimile Communications.

 

In
order to comply with federal regulations governing unsolicited facsimile
communications, senders of facsimile communications must obtain express written
permission from the recipients of such communications prior to initiating such
communications. By executing this Agreement, each party hereby gives its
express permission to the other parties to initiate facsimile communications,
and consents to receiving facsimile communications from the other parties. All
such facsimile communications should be directed to the applicable facsimile
number for each party listed in the applicable Program Agreement, unless
otherwise instructed in writing by the recipient of the facsimile. This consent
to facsimile communications does not supersede any requirement in this
Agreement or the Umbrella Agreement to deliver notices thereunder by means
other than facsimile.

 

XII.         Compliance With Regulation AB .

 

12.01
Information to be provided by Program Lender

 

In
connection with any Securitization Transaction, the Program Lender shall, (i) within
five (5) Business Days following request by FMC or any Depositor, provide
to FMC and such Depositor, in writing and in form and substance reasonably
satisfactory to FMC and such Depositor, the information and materials specified
in paragraph (a) of this Section, and (ii) as promptly as practicable
following notice to or discovery by the Program Lender, provide to FMC and any
Depositor (in writing and in form and substance reasonably satisfactory to
FMC and such Depositor) the information specified in paragraph (b) of this
Section.

 

(a)           If
so requested by FMC or any Depositor, the Program Lender shall provide such
information regarding (i) the Program Lender, as originator of the Bank of
America DTC Loans,

 

42

 

as is requested for
compliance with Items 1103(a)(l), 1110, 1117 and 1119 of Regulation AB. Such
information shall include, at a minimum:

 

(A) The
Program Lender’s form of organization;

 

(B) A description of
the Program Lender’s origination program and how long the Program Lender has
been engaged in originating student loans, which description shall include a
discussion of the Program Lender’s experience in originating student loans of a
similar type as the Bank of America DTC Loans, information regarding the size
and composition of the Program Lender’s origination portfolio and information
that may be material, in the good faith judgment of FMC or any Depositor,
to an analysis of the performance of the Bank of America DTC  Loans, including the Program Lender’s
credit-granting or underwriting criteria for student loans of similar type(s)
as the Bank of America DTC Loans and such other information as FMC or any
Depositor may reasonably request for the purpose of compliance with Item
1110(b)(2) of Regulation AB;

 

(C) A
description of any material legal or governmental proceedings pending (or known
to be contemplated) against the Program Lender (including without limitation
any legal or governmental proceedings pending, or known to be contemplated,
material to the Bank of America DTC Loans or loans of a similar type); and

 

(D)          A
description of any affiliation or relationship between the Program Lender and
any of the following parties to a Securitization Transaction, as such parties
are identified to the Program Lender or any Depositor in writing in advance of
such Securitization Transaction: (1) the sponsor; (2) the Depositor; (3) the
issuing entity; (4) any servicer; (5) any

 

43

 

trustee; (6) any
originator; (7) any significant obligor; (8) any enhancement or
support provider; and (9) any other material transaction party.

 

(b) For the purpose of satisfying reporting
obligations under the Securities Exchange Act of 1934, as amended, the Program
Lender shall notify FMC or any Depositor in writing of (A) any material
litigation or governmental proceedings pending against the Program Lender
(including without limitation any legal or governmental proceedings pending, or
known to be contemplated, material to the Bank of America DTC Loans or loans of
a similar type), (B) any affiliations or relationships that develop
following the closing date of a Securitization Transaction between the Program
Lender and any of the parties specified in (a) (D) of this Section with
respect to such Securitization Transaction, (C) any event of default under
the terms of this Agreement, (D) any merger, consolidation or sale of
substantially all of the assets of the Program Lender, and (ii) provide to
FMC, and any Depositor a description of such proceedings, affiliations or
relationships.

 

 [Balance of this page intentionally
left blank]

 

44

 

IN WITNESS WHEREOF, the parties hereto have executed this Agreement as
of the day and year first above written.

 

	
  WITNESS:

  	
  BANK OF AMERICA,
  N.A.:

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  /s/ Carole G.
  McSwain

  	
   

  	
  By:

  	
  /s/ Tracy J. Grooms

  	
   

  
	
  Print Name:

  	
   Carole G.
  McSwain

  	
   

  	
  Print Name:

  	
  Tracy J. Grooms

  	
   

  
	
   

  	
   

  	
  Title:

  	
  Senior Vice President

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  THE FIRST
  MARBLEHEAD CORPORATION

  
	
   

  	
   

  	
   

  	
   

  
	
   /s/ Steven J. Scott

  	
   

  	
  By:

  	
  /s/ Jack L. Kopnisky

  	
   

  
	
  Print Name:

  	
    Steven
  J. Scott

  	
   

  	
  Print Name:

  	
  Jack L. Kopnisky

  	
   

  
	
   

  	
   

  	
  Title:

  	
  CEO

  	
   

  
											

 

45

 

Note Purchase Agreement

Index to Exhibits

 

Exhibit A                Pool
Supplement

 

Exhibit B                Indemnification
Agreement

 

Exhibit C                Co-Lender
Indemnification Agreement

 

Exhibit D                Certificate
of Bank of America, N.A.

 

46

 

EXHIBIT A
TO NOTE PURCHASE AGREEMENT

 

[Form of
Pool Supplement]

 

This Pool
Supplement (“Supplement”) is entered into pursuant to and forms a part of
that certain Note Purchase Agreement (the “Agreement”) dated as of                  ,
by and between The First Marblehead Corporation (“FMC”) and Bank of America,
N.A. This Supplement is dated                                        ,           .
Capitalized terms used in this Supplement without definitions have the meaning
set forth in the Agreement.

 

Article 1:  Purchase and Sale.

 

In
consideration of the Minimum Purchase Price set forth in Schedule 1
attached hereto, Program Lender hereby transfers, sells, sets over and assigns
to [name of purchasing entity] (“Purchaser Trust”), upon the terms and
conditions set forth in the Agreement (which are incorporated herein by
reference with the same force and effect as if set forth in full herein), each
Bank of America DTC Loan described in the attached Schedule 2 (“the
Transferred Bank of America DTC Loans”) along with all of Program Lender’s
rights under the Guaranty Agreement relating to the Transferred Bank of America
DTC Loans. Program Lender hereby transfers and delivers to the Purchaser Trust
each Bank of America DTC Note evidencing such Bank of America DTC Loan and all
Origination Records relating thereto, in accordance with the terms of the
Agreement. Purchaser Trust hereby purchases said Bank of America DTC Notes on
said terms and conditions.

 

Article 2:  Price.

 

The
amount paid pursuant to this Supplement is the Minimum
Purchase Price, as that term is defined in Section 2.04 of the Agreement.

 

Article 3:  Representations and Warranties.

 

3.01.        By Program Lender.

 

Program
Lender repeats the representations and warranties contained in Section 5.02
of the Agreement and confirms the same are true and correct as of the date
hereof with respect to the Agreement and to this Supplement.

 

3.02.        By Purchaser Trust.

 

The
Purchaser Trust hereby represents and warrants to the Program Lender that at
the date of execution and delivery of this Supplement by the Purchaser Trust:

 

(a)           The Purchaser Trust is duly organized and
validly existing as a business trust under the laws of the State of Delaware
with the due power and authority to own its properties

 

47

 

and to conduct
its business as such properties are currently owned and such business is
presently conducted, and had at all relevant times, and has, the power,
authority and legal right to acquire and own the Transferred Bank of America
DTC Loans.

 

(b)           The Purchaser Trust is duly qualified to
do business and has obtained all necessary licenses and approvals, in all
jurisdictions in which the ownership or lease of property or the conduct of its
business shall require such qualifications.

 

(c)           The Purchaser Trust has the power and
authority to execute and deliver this Pool Supplement and to carry out its
respective terms; the Purchaser Trust has the power and authority to purchase
the Transferred Bank of America DTC Loans and rights relating thereto as
provided herein from the Program Lender and the Purchaser Trust has duly
authorized such purchase from the Program Lender by all necessary action; and
the execution, delivery and performance of this Pool Supplement has been duly
authorized by the Purchaser Trust by all necessary action on the part of
the Purchaser Trust.

 

(d)           This Pool Supplement, together with the
Agreement of which this Supplement forms a part, constitutes a legal, valid and
binding obligation of the Purchaser Trust, enforceable in accordance with its
terms.

 

(e)           The consummation of the transactions
contemplated by the Agreement and this Supplement and the fulfillment of the
terms hereof do not conflict with, result in any breach of any of the terms and
provisions of, or constitute (with or without notice or lapse of time) a
default under, the governing instruments of the Purchaser Trust or any
indenture, agreement or other instrument to which the Purchaser Trust is a
party or by which it is bound; or result in the creation or imposition of any
lien upon any of its properties pursuant to the terms of any such indenture,
agreement or other instrument; or violate any law or any order, rule or
regulation applicable to the Purchaser Trust of any court or of any federal or
state regulatory body, administrative agency or other governmental
instrumentality having jurisdiction over the Purchaser Trust or its properties.

 

(f)            There are no proceedings or
investigations pending, or threatened, before any court, regulatory body,
administrative agency or other governmental instrumentality having jurisdiction
over the Purchaser Trust or its properties: (1) asserting the invalidity
of the Agreement or this Pool Supplement, (2) seeking to prevent the
consummation of any of the transactions contemplated by the Agreement or this
Pool Supplement, or (3) seeking any determination or ruling that is likely
to materially or adversely affect the performance by the Purchaser Trust of its
obligations under, or the validity or enforceability of the Agreement or this
Pool Supplement.

 

Article 4:  Cross Receipt.

 

Program
Lender hereby acknowledges receipt of the Minimum Purchase Price. Purchaser
Trust hereby acknowledges receipt of the Transferred Bank of America DTC Loans
included in the Pool.

 

48

 

Article 5:  Assignment of Origination, Guaranty and
Servicing Rights.

 

OPTION
ONE – Purchaser Assures Program Lender’s Servicing Agreement Program Lender
hereby assigns and sets over to Purchaser Trust so much of its rights under the
Guaranty Agreement, the Loan Origination Agreement, and the Servicing Agreement
as relate to the Transferred Bank of America DTC Loans described in Schedule 2,
including, without limitation, the right to continued loan servicing under the
Servicing Agreement pursuant to a Servicing Assignment and Servicer consent
Letter delivered herewith.

 

Article 6:
Owner Trustee.

 

It is
expressly understood and agreed by the parties hereto that (a) this Pool
Supplement is executed and delivered by                                                     (the
“Owner Trustee”) not individually or personally, but solely as owner trustee of
the Purchaser Trust under the Trust Agreement dated as of                                              ,
with                                              ,
in the exercise of the powers and authority conferred and vested in it, (b) each
of the representations, undertakings and agreements herein made on the part of
the Purchaser Trust are made and intended not as personal representations,
undertakings and agreements by the Owner Trustee, but are made and intended for
the purpose for binding only the Purchaser Trust, (c) nothing herein
contained shall be construed as creating any personal or individual liability
on the Owner Trustee, to perform any covenant either expressed or implied
contained herein, all such liability, if any, being expressly waived by the
parties hereby and by any person claiming by, through, or under the parties
hereto, and (d) under no circumstances shall the Owner Trustee be
personally liable for the payment of any indebtedness or expenses of the
Purchaser Trust or be liable for the breach or failure of any obligation,
representation, warranty or covenant made or undertaken by the Purchaser Trust
under this Supplement or any other documents related to the Bank of America DTC
Notes.

 

IN
WITNESS WHEREOF, the parties have caused this Supplement to be executed as of
the date set forth above.

 

 

	
   

  	
  THE FIRST
  MARBLEHEAD

  CORPORATION

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
  Name:

  	
   

  	
   

  
	
   

  	
  Title:

  	
   

  	
   

  
						

 

49

 

	
   

  	
  PURCHASER
  NAME:

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By: OWNER
  TRUSTEE

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
  Print Name:

  	
   

  	
   

  
	
   

  	
  Title:

  	
   

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  BANK OF
  AMERICA, N.A.:

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
  Print Name:

  	
   

  	
   

  
	
   

  	
  Title:

  	
   

  	
   

  
									

 

50

 

EXECUTION COPY

 

Schedule 1 to the Pool Supplement (Sample)

Note Purchase Agreement for               
Bank Dated               

The National Collegiate Master Student Loan Trust        

Settlement Schedule (               
Bank) -               ,
2003 Sale (Final Reconciliation)

All numbers are final and are based on               ,
2003 PHEAA Servicing Tapes

 

Category 1: Undergraduate
Loans

 

	
  Number

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Of Loans

  	
   

  	
  Total Outstanding

  	
   

  	
  Total Outstanding

  	
   

  	
  TERI Origination

  	
   

  	
  Marketing Fee/

  	
   

  	
  Net

  	
   

  	
  Marketing Fee

  	
   

  
	
  Loan

  	
   

  	
  Principal

  	
   

  	
  Interest

  	
   

  	
  Fees

  	
   

  	
  Premium

  	
   

  	
  Principal

  	
   

  	
  as% of Net

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  

 

51

 

EXHIBIT B TO NOTE PURCHASE AGREEMENT

CO-LENDER INDEMNIFICATION AGREEMENT

 

 THIS CO-LENDER INDEMNIFICATION AGREEMENT (the “Agreement”)
is made as of [DATE], by
and between [Names and Addresses of Co-Lenders] (“Co-Lender”), and Bank of
America, N.A. (“Program Lender”), a national banking association organized
under the laws of the United States, with its headquarters and principal place
of business located at 600 Wilshire Blvd., Los Angeles, California (Co-Lender
and Bank of America are sometimes collectively referred to as the “Lenders” and
are each sometimes severally referred to as a “Lender”).

 

RECITALS

 

A.            The Lenders
are participants in certain private education loan programs to pay the costs of
attending institutions of education which are themselves participants in the
TERI Program (the “Participating Institutions”) whereunder such loans (the “TERI
Loans”) are guaranteed by The Education Resources Institute, Inc. (“TERI”)
(collectively, the “TERI Programs”).

 

B.            Each of
the Lenders, individually, have entered into an agreement (each, a “Purchase
Agreement”) with The First Marblehead Corporation or The National Collegiate
Trust, pursuant to which Purchase Agreements such Lenders have agreed to sell
certain TERI Loans to [Name of Purchasing Entity] (the “Purchaser Trust”), each
such purchase to be funded through the issuance and sale of certificates, bonds
or other evidences of indebtedness, the repayment of which are supported by
such TERI Loans (the “Subject Securitization Transaction”).

 

C.            As a
condition precedent to the obligation of each Lender to consummate the sale of
TERI Loans originated by them to the Purchaser Trust, all Lenders whose TERI
Loans will be included in the Subject Securitization Transaction are required
to execute and deliver to the other Lenders requesting same a copy of this
Agreement.

 

NOW, THEREFORE, in consideration of the foregoing
Recitals and for other good and valuable consideration, the receipt and
adequacy of which are hereby acknowledged, the parties hereto hereby agree as
follows:

 

ARTICLE I

REPRESENTATIONS AND WARRANTIES

 

1.01.        Each
Lender represents and warrants to each other Lender requesting this Agreement,
as to itself, that as of the date hereof:

 

52

 

(a)           It is a [             ]
duly organized, validly existing and in good standing under the laws of the
United States and has the power and authority to originate and/or hold TERI
Loans, to consummate the transaction contemplated by the Purchase Agreement to
which it is a party, and to execute and deliver and perform its
obligations under this Agreement;

 

(b)           This
Agreement has been duly authorized, executed and delivered and constitutes its
legal, valid and binding obligation, enforceable against it in accordance with
its terms except as enforceability may be limited by (a) the
receivership, conservatorship and similar supervisory powers of bank regulatory
agencies generally, as well as bankruptcy, insolvency, liquidation,
receivership, moratorium, reorganization or other similar laws affecting the
enforcement of the rights of creditors; (b) general principles of equity
(including availability of equitable remedies), whether enforcement is sought
in a proceeding in equity or at law; and (c) applicable securities laws
and public policy considerations underlying the securities laws to the extent
that such public policy considerations limit the enforceability of the
provisions of this Agreement which purport to provide indemnification with
respect to securities law liabilities;

 

(c)           Each
TERI Loan included in the Subject Securitization Transaction originated by it
is the valid, binding and enforceable obligation of the borrower executing the
same, and of any cosigner thereto, enforceable against the borrower and
cosigner thereunder in accordance with its terms except as enforceability may be
affected by bankruptcy, insolvency, moratorium or other similar laws affecting
the rights of creditors generally and by equitable principles;

 

(d)           At
the time of origination, each TERI Loan included in the Subject Securitization
Transaction originated by it and any accompanying notices and disclosures conforms
in all material respects to all applicable state and federal laws, rules and
regulations and the origination thereof was conducted in material compliance
with all applicable state and federal laws concerning the actions of the
Lender, including, without limitation, the Equal Credit Opportunity Act;

 

(e)           At
the time of origination, each TERI Loan included in the Subject Securitization
Transaction originated by it is in compliance in all material respects with any
applicable usury laws at the time made and as of the time of sale to the
Purchaser Trust pursuant to the Purchase Agreement to which Lender is a party;
and

 

(f)            The
respective Lender has no actual knowledge of any defense to payment with
respect to any TERI Loan included in the Subject Securitization Transaction
originated by it nor is there any action before any state or federal court,
administrative or regulatory body, pending against the Lender with regard to
its TERI Loans in which an adverse result would have a material adverse effect
upon the validity or enforceability of its TERI Loans.

 

53

 

ARTICLE 2

INDEMNIFICATION

 

2.01.        Cross-Indemnification.
Each Lender (an “Indemnifying Party”) hereby agrees to indemnify, hold harmless
and defend each other and such other Lender’s respective officers, directors,
employees, attorneys, agents (not including any Participating Institution or
the servicer of any TERI Loan) and each person who controls such other Lender
within the meaning of either Section 15 of the Securities Act of 1933, as
amended, or Section 20 of the Securities Exchange Act of 1934, as amended
(collectively and severally, the “Indemnified Parties”), from and against any
and all claims, obligations, penalties, actions, suits, judgments, costs,
disbursements, losses, liabilities and/or damages (including, without
limitation, reasonable external attorneys’ fees and the allocated costs of
internal salaried attorneys) of any kind whatsoever which may at any time
be imposed on, assessed against or incurred by any such Indemnified Party in
any way relating to or arising out of the 
material inaccuracy or incompleteness of any representation or warranty
made by the Indemnifying Lender hereunder or the material inaccuracy or
incompleteness of any representation or warranty made by the Indemnifying
Lender to any Participating Institution in connection with the TERI Program or
the Subject Securitization Transaction. The indemnity provided by each
Indemnifying Lender hereunder is in addition to any liability which such Lender
may otherwise have to the Indemnified Parties, at law, in equity or
otherwise, in connection with the Subject Securitization Transaction.

 

2.02. Procedure
for Indemnification. In case any proceeding (including any governmental investigation)
shall be instituted against any Indemnified Party in respect of which indemnity
is sought pursuant to Section 2.01, such Indemnified Party shall promptly
notify the applicable Indemnifying Party in writing. The Indemnifying Party,
upon request of the Indemnified Party, shall acknowledge its obligation,
subject to the terms hereof, to indemnify the Indemnified Party in writing and
shall retain counsel reasonably satisfactory to the Indemnified Party to
represent the Indemnified Party and any others the Indemnifying Party may designate
in such proceeding and the Indemnifying Party shall pay the fees and
disbursements of such counsel related to such proceeding, within a reasonable
period of time after such fees and disbursements are billed by such counsel. If
the Indemnifying Party fails to acknowledge its obligation, subject to the
terms hereof, to indemnify in writing or fails to retain such counsel within a
reasonable period of time after such notice was given, then the Indemnified
Party shall have the right to retain its own counsel, and the fees and expenses
of such counsel shall be at the expense of the Indemnifying Party. In any such
proceeding, any Indemnified Party shall have the right to retain its own
counsel, but the fees and expenses of such counsel shall be at the expense of
such Indemnified Party unless (a) the preceding sentence is applicable, (b) the
Indemnifying Party and the Indemnified Party shall have mutually agreed to the
retention of such counsel or (c) the named parties to any such proceeding
(including any impleaded parties) include both the Indemnifying Party and the
Indemnified Party and representation of both parties by the same counsel would
be inappropriate due to actual or potential differing interests between them. It
is understood that the Indemnifying Party shall not, in connection with any
proceeding or related proceedings in the same jurisdiction, be liable for the
reasonable fees and expenses of more than one separate firm (in addition to any
local counsel) for all such Indemnified Parties, and that all such fees and
expenses shall be reimbursed as they are incurred.

 

2.03. Settlements
of Proceedings. The Indemnifying Party shall not be liable for any settlement
of any proceeding effected without its written consent, but if settled with
such consent

 

54

 

or if there be a final
judgment for the plaintiff, the Indemnifying Party agrees to indemnify the
Indemnified Party from and against any loss or liability by reason of such
settlement or judgment. No Indemnifying Party, without the prior written
consent of the Indemnified Party, shall effect any settlement of any pending or
threatened proceeding in respect of which any Indemnified Party is or could
have been a party and indemnity could have been sought hereunder by such
Indemnified Party, unless such settlement includes an unconditional release of
such Indemnified Party from all liability on claims that are the subject of
such proceeding.

 

ARTICLE 3

MISCELLANEOUS

 

3.01. Notices.
All demands, notices and communications upon or to any Lender under this
Agreement shall be in writing, personally delivered or mailed by certified
mail, return receipt requested, to such Lender at its address set forth below
or to such other address as may hereafter be furnished by such Lender to
the other Lenders hereunder in writing, and shall be deemed to have been duly
given upon receipt.

 

If to
Co-Lender:

 

 

 

 

with a copy to:

 

 

 

 

If to Bank of
America, N.A.:

 

 

 

 

With a
copy to:

 

Laura
Rogers

800 Market
Street

11th
Floor

St
Louis, MO 63101

 

55

 

3.02. Successors
and Assigns. This Agreement is binding on the Lenders and their respective
successors and assigns. No Lender shall assign its rights or obligations under
this Agreement without the prior written consent of all other Lender hereunder,
other than to its wholly owned affiliate, and any assignment in violation of
this prohibition shall be automatically deemed null and void.

 

3.03. Arbitration.
The parties acknowledge that this Agreement evidences a transaction involving
interstate commerce. Any controversy or claim arising out of or relating to
this Agreement, or the breach of the same, shall be settled through
consultation and negotiation in good faith and a spirit of mutual cooperation
for up to fifteen (15) days commencing on the date when one party gives written
notice to the other party of any controversy or claim. However, if those
attempts fail, the parties agree that any misunderstandings or disputes arising
from this Agreement shall be decided by binding arbitration which shall be
conducted, upon request by either party, in New York, New York or such other
mutually agreed upon location, before one (1) arbitrator designated by the
American Arbitration Association (the “AAA”), in accordance with the terms of
the Commercial Arbitration Rules of the AAA, and, to the maximum extent
applicable, the United States Arbitration Act (Title 9 of the United States
Code). Notwithstanding anything herein to the contrary, either party may proceed
to a court of competent jurisdiction to obtain equitable relief at any time.

 

3.04.        Severability. Any
provision of this Agreement that is prohibited or unenforceable in any
jurisdiction shall, as to such jurisdiction, be ineffective to the extent of
such prohibition or unenforceability without invalidating the remaining
provisions hereof, and any such prohibition or unenforceability in any
jurisdiction shall not invalidate or render unenforceable such provision in any
other jurisdiction.

 

3.05.        Counterparts. This
Agreement may be executed by the parties hereto in separate counterparts,
each of which when so executed and delivered shall be an original, but all such
counterparts shall together constitute but one and the same instrument.

 

3.06.        Headings. The headings of
the various Articles and Sections herein are for convenience of reference only
and shall not define or limit any of the terms or provisions hereof.

 

3.07.        Amendment. This Agreement may not
be amended nor terms or provisions hereof waived unless such amendment or
waiver is in writing and signed by all parties hereto.

 

3.08.        No Waiver. No delay or
failure by any party to exercise any right, power or remedy hereunder shall
constitute a waiver thereof by such party, and no single or partial exercise by
any party of any right, power or remedy shall preclude other or further
exercise thereof or any exercise of any other rights, powers or remedies.

 

3.09.        Entire Agreement. This
Agreement embodies the entire agreement and understanding between the parties
with respect to the subject matter hereof and

 

56

 

supersedes
all prior agreements and understandings relating to the subject matter hereof
and thereof.

 

3.10.        Governing Law. This
Agreement shall be governed by and construed in accordance with the internal
laws of the State of New York without regard to its conflict of laws doctrine.

 

3.11.        No Third Party
Beneficiaries. This Agreement is made and entered into for the protection and
legal benefit of the parties hereto, their permitted successors and assigns,
and each and every Indemnified Party, and no other person shall be a direct or
indirect beneficiary of, or have any direct or indirect cause of action or
claim in connection with, this Agreement.

 

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

 

	
   

  	
  CO-LENDER(S)

  
	
   

  	
   

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
  Print Name:

  
	
   

  	
  Title:

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  BANK OF AMERICA, N.A.

  
	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
  Print Name:

  
	
   

  	
  Title:

  
							

 

57

 

EXECUTION COPY

 

EXHIBIT C TO NOTE PURCHASE AGREEMENT

INDEMNIFICATION AGREEMENT

 

This
INDEMNIFICATION AGREEMENT (the “Agreement”) is made                                           ,
2000, by and among [NAME OF PURCHASER TRUST (the “Trust”), The First Marblehead
Corporation (“First Marblehead”), and BANK OF AMERICA N.A. (“B of A”).

 

WITNESSETH:

 

WHEREAS,
pursuant to that certain Note Purchase Agreement dated April 30, 2001 (the
“Note Purchase Agreement”) between First Marblehead, as purchaser, and
B of A, B of A will sell to the Trust and the Trust will
purchase from B of A certain Bank of America GATE  Loans (“Contracts”);

 

WHEREAS,
contemporaneously with the transactions contemplated by the Note Purchase
Agreement, the Trust will sell securities backed by a pool consisting of the
Contracts (the “Securitization”);

 

WHEREAS,
First Marblehead assists the Trust in the Securitization process; and

 

WHEREAS,
the parties wish to set forth their agreements with respect to certain aspects
of the Securitization, on the terms and subject to the conditions set forth in
this Agreement;

 

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

 

ARTICLE 1

DEFINITIONS

 

SECTION 1.01.      Definitions.
Capitalized terms used herein without definition have the meanings assigned
thereto in the Note Purchase Agreement. Whenever used in this Agreement, the
following words and phrases shall have the following meanings:

 

“Agreement”
means this Indemnification Agreement, as it may be amended from time to
time.

 

“Commission”
means the Securities and Exchange Commission.

 

“Exchange
Act” means the Securities Exchange Act of 1934, as amended from time to time.

 

“B of A
Information” means solely the information set forth [to be determined]

 

“Indemnified
Party” has the meaning set forth in Section 4.03.

 

58

 

“Indemnifying
Party” has the meaning set forth in Section 4.03.

 

“Offering
Materials” means: (a) any private placement memoranda and any other
offering material given in connection with a sale or offer to sell, whether or
not such sale or offer to sell was required to be registered under the Securities
Act, and (b) any Registration Statement filed with the Commission pursuant
to which any Contract or interest therein is sold or offered for sale,
including the Prospectus relating thereto and any preliminary prospectuses and
amendments and supplements to such Registration Statement, Prospectus and
preliminary prospectus, including post-effective amendments and all exhibits
and all material incorporated by reference therein.

 

“Prospectus”
has the meaning given to such term in the Securities Act.

 

“Registration
Statement” has the meaning given to such term in the Securities Act.

 

“Securities”
means securities backed by the pool of Contracts that are to be issued by the
Trust.

 

“Securities
Act” means the Securities Act of 1933, as amended from time to time.

 

“Transaction
Documents” means the Note Purchase Agreement and the Pool Supplement issued
pursuant thereto.

 

ARTICLE 2

REPRESENTATIONS AND WARRANTIES

 

Each
of the Trust and First Marblehead jointly and severally represents and warrants
to B of A, and B of A hereby represents and warrants to the
Trust and First Marblehead, as of the date hereof and the Purchase Date, as
follows:

 

(1)           It
is a corporation, business trust, or, in the case of B of A, a
national banking association, duly organized, validly existing and in good
standing under the laws of the jurisdiction of its organization, and it has the
corporate power to own its assets and to transact the respective business in
which it is currently engaged. It is duly qualified to do business as a foreign
corporation or other entity and is in good standing in each jurisdiction in
which its type of organization and the character of the business transacted by
it or properties owned or leased by it requires such qualification and in which
the failure to so qualify would have a material adverse effect on its business,
properties, assets, or condition (financial or other);

 

(2)           It
has obtained all necessary licenses and approvals, in all jurisdictions in
which the ownership or lease of property or the conduct of its business and its
type of organization requires such licenses or approvals unless the failure to
obtain any such licenses or approvals would have no material adverse effect on
the ability of such party to fulfill its obligations hereunder;

 

59

 

(3)           It
has the power and authority to execute and deliver this Agreement and to carry
out the terms hereof; and the execution, delivery and performance of this
Agreement by it has been duly authorized by all necessary action;

 

(4)           This
Agreement constitutes its legal, valid and binding obligation, enforceable
against it in accordance with its terms except as enforcement of such terms may be
limited by bankruptcy, insolvency or similar laws affecting the enforcement of
creditors’ rights generally and by the availability of equitable remedies, and
except as enforcement of any terms relating to indemnification may be
limited by applicable securities law;

 

(5)           For
B of A and the Trust only, the consummation of the transactions
contemplated by this Agreement and the fulfillment of the terms hereof do not
conflict with, result in any breach of any of the terms and provisions of, or
constitute (with or without notice or lapse of time) a default under, its
governing documents, or any material indenture, agreement or other instrument
to which it is a party or by which it is bound; or result in the creation or
imposition of any lien upon any of its properties pursuant to the terms of any
such indenture, agreement or other instrument; or violate any law or any order,
rule or regulation applicable to it of any court or of any federal or
state regulatory body, administrative agency or other governmental
instrumentality having jurisdiction over it or its properties; and

 

(6)           There
are no proceedings or investigations pending, or threatened, before any court,
regulatory body, administrative agency or other governmental instrumentality
having jurisdiction over it or its properties: (1) asserting the
invalidity of this Agreement (2) seeking to prevent the consummation of
any of the transactions contemplated by this Agreement, or (3) seeking any
determination or ruling that is likely to materially and adversely affect the
performance by it of its obligations hereunder or the validity and enforceability
of this Agreement.

 

ARTICLE 3

CONDITIONS TO CLOSING

[Intentionally Omitted]

 

ARTICLE 4

INDEMNIFICATION

 

SECTION 4.01.      Indemnification
by First Marblehead and the Trust. The Trust and First Marblehead jointly
and severally agree to indemnify, hold harmless and defend B of A,
its officers, directors, employees, attorneys, agents and each Person who
controls B of A within the meaning of either Section 15 of the
Securities Act or Section 20 of the Exchange Act, as follows:

 

(a)           against
any and all loss, liability, claim, damage and expense whatsoever arising out
of any untrue statement or alleged untrue statement of a material fact
contained in any Offering Materials under the heading, [to be determined] [“Method
of Distribution”] or the omission or alleged omission therefrom of a material
fact necessary

 

60

 

in
order to make the statements therein, in light of the circumstances under which
they were made, not misleading;

 

(b)           against
any and all loss, liability, claim, damage and expense whatsoever to the extent
of the aggregate amount paid in settlement of any litigation, or investigation
or proceeding by any governmental agency or body, commenced or threatened, or
of any claim whatsoever, based upon any such untrue statement or omission, or
any such inaccuracy, if such settlement is effected with the written consent of
the Trust and First Marblehead; and

 

(c)           against
any and all expense whatsoever (including the fees and disbursements of counsel
chosen by the B of A) reasonably incurred in investigating, preparing
or defending against any litigation, or investigation or proceeding by any
governmental agency or body, commenced or threatened, or any claim whatsoever,
based upon any such untrue statement or omission, or any such inaccuracy, to
the extent that any such expense is not paid under (a) or (b) above.

 

This
indemnity agreement will be in addition to any liability which the Trust and
First Marblehead may otherwise have.

 

SECTION 4.02.      Indemnification
by B of A. B of A agrees to indemnify and hold harmless
the Trust and First Marblehead and each person, if any, who controls NCT or
First Marblehead within the meaning of Section 15 of the Securities Act of
1933, as amended (the “1993 Act”), as follows:

 

(a)           against
any and all loss, liability, claim, damage and expense whatsoever arising out
of any untrue statement or alleged untrue statement of a material fact
contained in the B of A Information (or any amendment or supplement
thereto approved in writing by B of A) or the omission or alleged
omission therefrom of a material fact necessary in order to make the statements
therein, in light of the circumstances under which they were made, not
misleading;

 

(b)           against
any and all loss, liability, claim, damage and expense whatsoever to the extent
of the aggregate amount paid in settlement of any litigation, or investigation
or proceeding by any governmental agency or body, commenced or threatened, or
of any claim whatsoever, based upon any such untrue statement or omission, or
any such inaccuracy, if such settlement is effected with the written consent of
B of A; and

 

(c)           against
any and all expense whatsoever (including the fees and disbursements of counsel
chosen by the Trust and First Marblehead) reasonably incurred in investigating,
preparing or defending against any litigation, or investigation or proceeding
by any governmental agency or body, commenced or threatened, or any claim
whatsoever, based upon any such untrue statement or omission, or any such inaccuracy,
to the extent that any such expense is not paid under (a) or (b) above.

 

61

 

This
indemnity agreement will be in addition to any liability which B of A
may otherwise have.

 

SECTION 4.03.      Procedure
for Indemnification. In case any proceeding (including any governmental
investigation) shall be instituted involving any Person in respect of which
indemnity may be sought pursuant to Section 4.01 or 4.02, such Person
(hereinafter called the “Indemnified Party”) shall promptly notify the person
against whom such indemnity may be sought (hereinafter called the “Indemnifying
Party”) in writing. The Indemnifying Party, upon request of the Indemnified
Party, shall acknowledge its obligation, subject to the terms hereof, to
indemnify the Indemnified Party in writing and shall retain counsel reasonably
satisfactory to the Indemnified Party to represent the Indemnified Party and
any others the Indemnifying Party may designate in such proceeding and the
Indemnifying Party shall pay the fees and disbursements of such counsel related
to such proceeding, as and when such fees and disbursements are billed by such
counsel. If the Indemnifying Party fails to acknowledge its obligation, subject
to the terms hereof, to indemnify in writing or fails to retain such counsel
within a reasonable period of time after such notice was given, then the
Indemnified Party shall have the right to retain its own counsel, and the fees
and expenses of such counsel shall be at the expense of the Indemnifying Party.
In any such proceeding, any Indemnified Party shall have the right to retain
its own counsel, but the fees and expenses of such counsel shall be at the
expense of such Indemnified Party unless (a) the preceding sentence is
applicable, (b) the Indemnifying Party and the Indemnified Party shall
have mutually agreed to the retention of such counsel or (c) the named
parties to any such proceeding (including any impleaded parties) include both
the Indemnifying Party and the Indemnified Party and representation of both
parties by the same counsel would be inappropriate due to actual or potential
differing interests between them. It is understood that the Indemnifying Party
shall not, in connection with any proceeding or related proceedings in the same
jurisdiction, be liable for the reasonable fees and expenses of more than one
separate firm (in addition to any local counsel) for all such Indemnified
Parties, and that all such fees and expenses shall be reimbursed as they are
incurred.

 

SECTION 4.04.      Settlements
of Proceedings. The Indemnifying Party shall not be liable for any
settlement of any proceeding effected without its written consent, but if
settled with such consent or if there be a final judgment for the plaintiff,
the Indemnifying Party agrees to indemnify the Indemnified Party from and
against any loss or liability by reason of such settlement or judgment. No
Indemnifying Party, without the prior written consent of the Indemnified Party,
shall effect any settlement of any pending or threatened proceeding in respect
of which any Indemnified Party is or could have been a party and indemnity
could have been sought hereunder by such Indemnified Party, unless such
settlement includes an unconditional release of such Indemnified Party from all
liability on claims that are the subject matter of such proceeding.

 

SECTION 4.05.      Contribution.
In order to provide for just and equitable contribution in circumstances in
which the indemnification provided for in Sections 4.01 and 4.02 hereof is for
any reason held to be unenforceable by the Indemnified Parties although
applicable in accordance with its terms, B of A, on the one hand, and
the Trust and First Marblehead, on the other, shall contribute to the aggregate
losses, liabilities, claims, damages and

 

62

 

expenses of the nature
contemplated in Sections 4.01 and 4.02 that are incurred by B of A,
the Trust and First Marblehead in such proportions that (i) the Trust and
First Marblehead shall be responsible for that portion represented by the
percentage that the gross fee earnings of First Marblehead in the
Securitization bear to the sum of such fees and the purchase price paid by the
Trust for the Contracts, and (ii) B of A shall be responsible
for the balance; provided, however, that no person guilty of fraudulent
misrepresentation (within the meaning of Section 11(f) of the 1933
Act) shall be entitled to contribution from any person who was not guilty of
such fraudulent misrepresentation.

 

The
Trust, First Marblehead and B of A agree that it would not be just
and equitable if contribution pursuant to this Section 4.05 were
determined by pro rata allocation or by any other method of allocation
that does not take account of the equitable considerations referred to in the
immediately preceding paragraph. The amount paid or payable by an Indemnified
Party pursuant to Section 4.01 or 4.02 shall be deemed to include, subject
to the limitations set forth above, any legal or other expense reasonably
incurred by such Indemnified Party in connection with investigating or
defending any such action or claim. No person guilty of fraudulent
misrepresentation (within the meaning of Section 11(f) of the
Securities Act) shall be entitled to contribution from any person who was not
guilty of such fraudulent misrepresentation.

 

ARTICLE 5

MISCELLANEOUS

 

SECTION 5.01.      Notices.
All demands, notices and communications upon or to B of A, the Trust
and First Marblehead under this Agreement shall be in writing, personally
delivered or mailed by certified mail, return receipt requested, and shall be
deemed to have been duly given upon receipt (a) The First Marblehead
Corporation, 30 Little Harbor, Marblehead, MA 
01945; (b) [ADDRESS FOR PURCHASER TRUST], (c) B of A                                                                                                          ,
or such other address as may hereafter be furnished to the other parties
in writing.

 

SECTION 5.02.      Successors
and Assigns. This Agreement is binding on B of A’s, the Trust’s
and First Marblehead’s successors and assignees. Each party hereto agrees that
it will not assign this Agreement without the other parties’ prior written
consent.

 

SECTION 5.03.      Arbitration.

 

(a)           Any
controversy or claim between or among the parties arising out of or relating to
this Agreement or any agreements or instruments relating hereto or delivered in
connection herewith and any claim based on or arising from an alleged tort,
shall at the request of any party, be determined by arbitration. The
arbitration shall be conducted in accordance with the United States Arbitration
Act (Title 9, U.S. Code), notwithstanding any choice of law provision in this
Agreement, and under the Commercial Rules of the American Arbitration
Association (“AAA”). The arbitrator(s) shall give effect to statutes of
limitation in determining any claim. Any controversy concerning whether an
issue is arbitratable shall be determined by the arbitrator(s). Judgment upon
the arbitration award

 

63

 

may be
entered in any court having jurisdiction. The institution and maintenance of an
action for judicial relief or pursuit of a provisional or ancillary remedy
shall not constitute a waiver of the right of any party, including the plaintiff,
to submit the controversy or claim to arbitration if any other party contests
such action for judicial relief.

 

(b)           No
provision of this Section 5.03 shall limit the right of any party to this
Agreement to exercise self-help remedies such a setoff, foreclosure against or
sale of any real or personal property collateral or security, or obtaining
provisional or ancillary remedies from a court of competent jurisdiction
before, after, or during the pendency of any arbitration or other proceeding. The
exercise of a remedy does not waive the right of either party to resort to
arbitration or reference.

 

SECTION 5.04.      Costs
and Attorneys’ Fees. In the event of a lawsuit or arbitration proceeding
arising out of or relating to this Agreement, the prevailing party is entitled
to recover costs and reasonable attorneys’ fees incurred in connection with the
lawsuit or arbitration proceeding, as determined by the court or arbitrator.

 

SECTION 5.05.      Severability.
Any provision of this Agreement that is prohibited or unenforceable in any
jurisdiction shall, as to such jurisdiction, be ineffective to the extent of
such prohibition or unenforceability without invalidating the remaining
provisions hereof, and any such prohibition or unenforceability in any
jurisdiction shall not invalidate or render unenforceable such provision in any
other jurisdiction.

 

SECTION 5.06.      Counterparts.
This Agreement may be executed by the parties hereto in separate
counterparts, each of which when so executed and delivered shall be an
original, but all such counterparts shall together constitute but one and the
same instrument.

 

SECTION 5.07.      Headings.
The headings of the various Articles and Sections herein are for convenience of
reference only and shall not define or limit any of the terms or provisions
hereof.

 

SECTION 5.08.      Limitation
of Recourse to the Trust. Notwithstanding any provision of this Agreement
to the contrary, all obligations of the Trust under this Agreement shall be
payable only from the rights of the Trust in the Contracts. No recourse shall
be had against the general funds of the Trust, nor against any income or
proceeds of the Contracts not available, in accordance with the Trust
Instrument, for distribution. To the extent that the interests of the Trustee
and the bond holders under the Trust Instrument are fully satisfied, or if
proceeds of the Contracts are otherwise distributed to the owners of the Trust
free and clear of claims of said Trustee (as defined in the Trust Instrument),
claims against the Trust may be satisfied from the Contracts or the
distributable proceeds thereof.

 

	
   

  	
  BANK OF AMERICA
  NA

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
  Print Name:

  

 

64

 

	
   

  	
  Title:

  
	
   

  	
   

  
	
   

  	
  [NAME OF
  PURCHASER TRUST]

  
	
   

  	
  By: [NAME OF TRUSTEE],
  not in its individual

  capacity but solely in its capacity as Trustee

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
  Print Name:

  
	
   

  	
  Title:

  
	
   

  	
   

  
	
   

  	
  THE FIRST
  MARBLEHEAD CORPORATION

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
  Print Name:

  
	
   

  	
  Title:

  

 

65

 

EXHIBIT D

 

CERTIFICATE

OF

BANK OF
AMERICA, N.A.

 

This Certificate is being delivered to Thacher
Proffitt & Wood (“TPW”) for reliance hereon by TPW in rendering
its opinion letter to which this Certificate is annexed, dated the date hereof
(the “Opinion Letter”). The undersigned understands, acknowledges and
agrees that the facts set forth in the Opinion Letter have been relied upon by
TPW in rendering the Opinion Letter and by each addressee thereof and other
parties to the transactions to which the Opinion Letter relates in the
consummation of those transactions. Capitalized terms not defined herein have
the meanings assigned to them in the Opinion Letter and the Agreements. The
undersigned hereby represents, warrants, covenants and certifies, after
reasonable investigation and review and consultation as appropriate with its
attorneys and independent accountants, as follows:

 

1.             The
transfers pursuant to the Agreements of the Student Loans by the Bank to the
Trust were intended to constitute sales. Those transfers will be reported as
such in the general ledgers and other accounting records, and in any separate
unconsolidated financial statements of the Bank. Those transfers  (i) were intended to constitute a sale
of the Student Loans and will be reported as such under United States generally
accepted accounting principles (“GAAP”) and for United States federal
income tax purposes such that the Student Loans will no longer be included in
any consolidated financial statements in which the financial statements of the
Bank are included and (ii) meet all of the requirements for such
accounting and tax treatment, except that the undersigned makes no
representation, warranty, covenant or certification herein as to whether any
requirement under GAAP that the Student Loans have been legally isolated from
the Bank has been satisfied, which requirement is the subject of the Opinion
Letter.

 

2.             Except
as described in the Agreements and the Opinion Letter, neither the Bank nor any
affiliate thereof now has or intends to acquire at any time any other direct or
indirect ownership or other economic interest in, or other right or obligation
with respect to, any Student Loan or security backed thereby.

 

3.             The
Agreements have been approved by the Board of Directors of the Bank acting
through its Finance Committee pursuant to resolutions dated                                   
and a written consent of the Finance Committee effective as of                        ,
which approval is reflected in the minutes of the Board of Directors of the
Bank and its Finance Committee, and copies thereof will be maintained
continuously from the time of execution in the official records of the Bank.

 

4.             The
factual statements in the Opinion Letter are accurate, including with
limitation the following:

 

(i)            Pursuant
to [the 2000 Student Loan Purchase Agreement,] [the 2000 Pool Supplement,] [the
2001 Student Loan Purchase Agreement] [and the 2001 Pool Supplement,] the Bank
sold 100% of its ownership interest in the Student Loans to the Trust for
consideration

 

 

consisting only of cash. Simultaneously
with the transfer of ownership of the Student Loans to the Trust, pursuant to
the Indenture the Trust assigned and granted a security interest in the Student
Loans and certain other property to the Trustee as secured party on behalf of
the holders of the Notes and the Bond Insurer. Except as described in the
Agreements, the Bank has not acquired, and does not intend to acquire at any
time, directly or indirectly any residual, equity or other ownership or
economic interest, or any other right or obligation that could be determined to
constitute recourse with respect to any Student Loan or Note.

 

(ii)           The
Notes are also entitled to the benefits of the Note Guaranty Insurance Policy
with respect to amounts required to be available for distribution thereon. Neither
the Bank or the Trust nor any affiliate of either has any liability to the Bond
Insurer except for payment of the premium therefor, the Indemnity Agreement and
for the usual and customary representations and warranties.

 

The undersigned has executed this Certificate as
of the date of the Opinion Letter.

 

	
   

  	
  BANK
  OF AMERICA, N.A.

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
   

  	
  Name:

  	
   

  	
   

  
	
   

  	
   

  	
  Title:

  	
  Senior
  Vice President

  
						

 

67

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