Document:

exv10w30

 

Exhibit 10.30

CERTAIN PORTIONS OF THIS EXHIBIT HAVE BEEN OMITTED AND FILED SEPARATELY WITH THE SECURITIES
AND EXCHANGE COMMISSION PURSUANT TO A REQUEST FOR CONFIDENTIAL TREATMENT. THE SYMBOL “[****]” HAS
BEEN INSERTED IN PLACE OF THE PORTIONS SO OMITTED

PURCHASE AND SALE AGREEMENT

     This PURCHASE AND SALE AGREEMENT (as amended, restated, supplemented or otherwise modified
from time to time, this “Agreement”), dated as of September 30, 2005 (the “Effective Date”), is
among COLLEGIATE FUNDING SERVICES, L.L.C., a Virginia limited liability company (“Seller”), THE
BANK OF NEW YORK, not in its individual capacity but solely as eligible lender trustee for the
seller (in such capacity, the “Seller Trustee”) for the benefit of Seller, JPMORGAN CHASE BANK,
N.A., as purchaser (“Purchaser”, which term includes any Affiliate of JPMorgan Chase Bank, N.A.
that signs an amendment to the Agreement agreeing to be a “Purchaser” hereunder) and JPMORGAN CHASE
BANK, N.A., not in its individual capacity but solely as eligible lender trustee for the purchaser
(in such capacity, the “Purchaser Trustee”).

WITNESSETH:

     WHEREAS, Seller, through its affiliates, is engaged in a program of originating, purchasing
and financing Student Loans;

     WHEREAS, Purchaser will also engage in a program of purchasing and financing Student Loans;

     WHEREAS, the Purchaser, by and through the Purchaser Trustee, desires to purchase from the
Seller, by and through the Seller Trustee certain Student Loans, title to which will be held by the
Purchaser Trustee pursuant to the Purchaser Trust Agreement, and the Seller, by and through the
Seller Trustee, desires to sell certain Student Loans to the Purchaser, in accordance with the
terms and conditions of this Agreement; and

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

ARTICLE I

DEFINITIONS

     The following words and terms used in this Agreement shall have the following meanings:

     “Affiliate” when used with respect to a Person, means any other Person controlling,
controlled by, or under common control with, such Person.

 

 

     “Aggregate Purchase Price” means with respect to a Portfolio of Student Loans, the
amount determined pursuant to Appendix A of this Agreement.

     “Business Day” means a day on which the commercial banks in New York City are not
authorized or required to be closed for business.

     “Collections” means, with respect to any Student Loan, (i) all funds which are
received by Seller or the Seller Trustee, any Servicer or any other Person on behalf of Seller from
or on behalf of the related Obligors in payment of any amounts owed (including, without limitation,
all Interest Subsidy Payments, Special Allowance Payments, Guarantee Payments, Reimbursement
Payments, finance charges, interest and all other charges) in respect of such Student Loan, or
applied to such amounts owed by such Obligors, (ii) all funds received pursuant to the Servicing
Agreements, including all payments representing the purchase price of any repurchased Student Loan,
and (iii) all funds received by Seller or the Seller Trustee pursuant to purchase and sale
agreements or from any other source in respect of such Student Loan.

     “Commitment Amount” means $500,000,000.

     “Cut-off Date” has the meaning set forth in Section 2.1.

     “Department” means the United States Department of Education, or any successor thereto
or to the functions thereof.

     “Eligible Student Loan” means a FFELP Loan which (i) has been or will be made to a
borrower for post-secondary education; (ii) is Guaranteed; (iii) is a consolidation loan authorized
under Section 428C of the Higher Education Act, (iv) qualifies the holder thereof to receive
Interest Subsidy Payments and Special Allowance Payments to the extent applicable; (v) which is
denominated and payable only in United States dollars and payable in the United States or one of
its territories; (vi) which, at the time such Student Loan is sold to Purchaser, is not considered
in default under the Higher Education Act; (vii) which, on the date of sale, is not more than 90
days delinquent; (viii) which is or was originated or acquired in the ordinary course of business;
(ix) which is beneficially owned by the Seller; (x) which is evidenced by a promissory note of
which there is only one original executed copy; (xi) which is not subject to any right of
cancellation or rescission (after 120 days from reimbursement thereof), set-off, counterclaim, or
other defense of the related obligor; (xii) the obligor of which, at the time such Student Loan is
sold to Purchaser, is not the subject of an event of bankruptcy and is not deceased or permanently
and totally disabled within the meaning of the Higher Education Act; (xiii) which together with the
contract related thereto, does not contravene in any material respect the Higher Education Act or
any other laws, rules, or regulations applicable thereto; (xiv) the obligor of which is required to
make payments to the Servicer; (xv) which is assignable without the consent of the related obligor;
(xvi) which bears interest at a rate not in excess of that applicable rate of interest permitted by
the Higher Education Act at the time originated for such type of loan; (xvii) which provides or,
when the payment schedule with respect thereto is determined, will provide for payments on a
periodic basis that will fully amortize the principal balance thereof during the repayment period,
as such payment period may be modified in accordance with applicable deferral and forbearance
periods granted in accordance with the Higher Education Act and the applicable Guarantee Agreement;
(xviii) the payment terms of which have not been altered or
amended except in accordance with the Higher Education Act; and (xix) as of the applicable
Sale Date, is not more than 180 days past its origination date.

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     “Event of Termination” has the meaning set forth in Section 7.2.

     “FFELP Loan” means a Federal Consolidation Loan under the FFELP Program.

     “FFELP Program” means the Federal Family Education Loan Program authorized under the
Higher Education Act, including Federal Stafford Loans authorized under Sections 427 and 428
thereof, Federal Supplemental Loans for Students authorized under Section 428A thereof. Federal
PLUS Loans authorized under Section 42XB thereof, Federal Consolidation Loans authorized under
Section 428C thereof and Unsubsidized Stafford Loans authorized under Section 428H thereof.

     “Guarantee” or “Guaranteed” means, with respect to a FFELP Loan, the guarantee
by the Guarantee Agency, in accordance with the terms and conditions of the Guarantee Agreement, of
the principal of and accrued interest on the FFELP Loan to the maximum extent permitted under the
Higher Education Act on FFELP Loans which have been originated, held and serviced in full
compliance with the Higher Education Act, and the coverage of the FFELP Loan by the Reimbursement
Contracts providing, among other things, for reimbursement to the Guarantee Agency for losses
incurred by it on defaulted Eligible Student Loans guaranteed by it to the extent of the maximum
reimbursement allowed by the Reimbursement Contracts.

     “Guarantee Agency” means a state agency or a private nonprofit institution or
organization which administers a guarantee program within a state or any successors and assignees
thereof administering the guarantee program which has entered into a Guarantee Agreement with the
Purchaser Trustee on behalf of the Purchaser.

     “Guarantee Agreement” means any of, and “Guarantee Agreements” means all of,
the agreements pursuant to which a Guarantor guarantees Student Loans that are FFELP Loans
transferred pursuant to this Agreement as of the Sale Date for such Student Loans.

     “Guarantors” means the entities set forth on Appendix B to this Agreement.

     “Guarantee Payment” means any payment by a Guarantor pursuant to a Guarantee Agreement
in respect of a Student Loan.

     “Governmental Authority” means any nation or government, any state or other political
subdivision thereof, any central bank (or similar monetary or regulatory authority) thereof, any
body or entity exercising executive, legislative, judicial, regulatory or administrative functions
or pertaining to government, including without limitation any court, and any Person owned or
controlled, through stock or capital ownership or otherwise, by any of the foregoing.

     “Higher Education Act” means the Higher Education Act of 1965, as amended or
supplemented from time to time, or any successor federal act, together with any rules, regulations
and interpretations promulgated thereunder.

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     “Initial Purchase Period” means the one year period from and including the Effective
Date through but excluding the first anniversary of the Effective Date.

     “Interest Subsidy Payments” means payments, designated as such, consisting of interest
subsidies to Seller by the Department in respect of Student Loans that are FFELP Loans in
accordance with the Higher Education Act.

     “Lien” means any interest in property securing an obligation owed to, or a claim by, a
Person other than the owner of the property, whether such interest is based on common law, statute
or contract, and including but not limited to the security interest lien arising from a mortgage,
encumbrance, pledge, assignment, conditional sale or trust receipt for a lease, consignment or
bailment for security purposes.

     “Material Adverse Effect” with respect to any event or circumstance and any Person,
means a material adverse effect on:

	 	(i)	 	the business, assets, financial condition, prospects or operations of such
Person;
	 
	 	(ii)	 	the ability of such Person to perform its obligations under this Agreement;
	 
	 	(iii)	 	the validity, enforceability or collectibility of this Agreement, a material
amount of the Student Loans or the Student Loan Notes, or the Servicing Agreements or
the Guarantee Agreements;
	 
	 	(iv)	 	the status, existence, perfection, priority or enforceability of Purchaser’s
interest in the Student Loans and Related Assets sold hereunder; or
	 
	 	(v)	 	a Guarantor’s obligation to guarantee payment of a Student Loan.

     “Notice of Release” shall have the meaning set forth in the Warehouse Indenture.

     “Obligor” means a Person obligated to make payments with respect to a Student Loan,
including the students, Guarantors and the Department.

     “Originator” means the Seller or any originator of FFELP Loans that controls, is
controlled by or is under common control with the Seller or from whom the Seller has purchased
FFELP Loans or applications for FFELP Loans.

     “Person” means an individual, partnership, corporation (including a business trust),
joint stock company, limited liability company, trust, unincorporated association, joint venture,
government or any agency or political subdivision thereof or any other entity.

     “Portfolio” means a group of Student Loans sold on a Sale Date by the Seller Trustee
to the Purchaser Trustee pursuant to Section 2.1 hereof.

     “Purchased Assets” has the meaning set forth in Section 2.2(b).

     “Purchaser” has the meaning set forth in the preamble to this Agreement.

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     “Purchaser Trust Agreement” means the eligible lender trust agreement between the
Purchaser Trustee and the Purchaser, pursuant to which the Purchaser Trustee will hold legal title
to the Student Loans, for which the Purchaser is the beneficial owner.

     “Reauthorization Event” means final approval by the House, Senate and President of the
United States of reauthorization of the Higher Education Act containing provisions, in the
aggregate, materially less favorable to the Purchaser as a lender than those currently in effect as
of the date of this Agreement; provided that a Reauthorization Event shall not be deemed to occur
with respect to any provision until such provision has been promulgated and has gone into
effect.

     “Refund Event” has the meaning set forth in Section 3.4.

     “Reimbursement Contract” means the agreements between the Guarantors and the
Department providing for the payment by the Secretary of amounts authorized to be paid pursuant to
the Higher Education Act.

     “Reimbursement Payment” means any payment by the Secretary pursuant to a Reimbursement
Contract in respect of a Student Loan that is transferred to Purchaser pursuant to this Agreement.

     “Related Assets” means, with respect to any Student Loan: (a) all of Seller’s and
Seller Trustee’s right, title and interest in and to the Student Loan Note(s) representing such
Student Loan; (b) all of Seller’s and Seller Trustee’s rights with respect to such Student Loan
under any other agreement or arrangement, including without limitation any Guarantee Agreement or
other guarantee or arrangement supporting or securing payment of such Student Loan, any Servicing
Agreement, any purchase and sale agreement and any origination agreement; (c) all security
interests or liens and property subject thereto from time to time purporting to secure payment of
such Student Loan, whether pursuant to the Student Loan Note related to such Student Loan or
otherwise; (d) all UCC financing statements covering any collateral securing payment of such
Student Loan; (e) all of Seller’s and Seller Trustee’s right, title and interest in and to all
Interest Subsidy Payments and Special Allowance Payments with respect to such Student Loan; (f) all
borrower interest with respect to such Student Loan; (g) all origination fees, other up-front fees
and other reserve amounts with respect to such Student Loan; (h) all books and records (including
computer tapes and disks) related to the foregoing, and (i) all Collections and other proceeds of
any and all of the foregoing.

     “Sale Date” means any date as of which the Purchaser, in accordance with the terms of
Section 2.1, purchases a Portfolio of Student Loans from the Seller Trustee (on behalf of the
Seller) or the Seller.

     “Secretary” means the Secretary of the Department or an official or employee of the
Department acting for the Secretary under a delegation of appointment.

     “Seller” has the meaning set forth in the preamble to this Agreement.

     “Seller Trustee” has the meaning set forth in the preamble to this Agreement.

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     “Seller Trust Agreement” means the eligible lender trust agreement between the Seller
Trustee and the Seller, pursuant to which the Seller Trustee will hold legal title to the Student
Loans, for which the Seller is the beneficial owner.

     “Servicer” means CFS-SunTech Servicing LLC.

     “Servicer Event of Default” means the occurrence of an event allowing the Purchaser to
terminate the Servicing Agreement pursuant to Section 10(b) of the Servicing Agreement, after
giving effect to any applicable cure period.

     “Servicing Agreement” means the loan servicing agreement, dated as of September 30,
2005, between the Purchaser and the Servicer.

     “Solvent” means, with respect to any Person at any time, a condition under which:

	 	(i)	 	the fair value and present fair saleable value of such Person’s total assets
is, on the date of determination, greater than such Person’s total liabilities
(including contingent and unliquidated liabilities) at such time;
	 
	 	(ii)	 	the fair value and present fair saleable value of such Person’s assets is
greater than the amount that will be required to pay such Person’s probable liability
on its existing debts as they become absolute and matured (“debts”, for this purpose,
includes all legal liabilities, whether matured or unmatured, liquidated or
unliquidated, absolute, fixed, or contingent);
	 
	 	(iii)	 	such Person is and shall continue to be able to pay all of its liabilities as
such liabilities mature; and
	 
	 	(iv)	 	such Person does not have unreasonably small capital with which to engage in
its current and in its anticipated business.

For purposes of this definition:

	 	(A)	 	the amount of a Person’s contingent or unliquidated liabilities at any time
shall be that amount which, in light of all the facts and circumstances then existing,
represents the amount which can reasonably be expected to become an actual or matured
liability;
	 
	 	(B)	 	the “fair value” of an asset shall be the amount which may be realized within a
reasonable time either through collection or sale of such asset at its regular market
value;
	 
	 	(C)	 	the “regular market value” of an asset shall be the amount which a capable and
diligent business person could obtain for such asset from an interested buyer who is
willing to purchase such asset under ordinary selling conditions; and

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	 	(D)	 	the “present fair saleable value” of an asset means the amount which can be
obtained if such asset is sold with reasonable promptness in an arms length transaction
in an existing and not theoretical market.

     “Special Allowance Payments” means payments, designated as such, consisting of
effective interest subsidies by the Department in respect of Student Loans that are FFELP Loans in
accordance with the Higher Education Act.

     “Student Loan” means a FFELP Loan originated by an Originator under an approved lender
identification number issued by the Department.

     “Student Loan Notes” means the promissory notes or other writings or records
evidencing the Student Loans including, solely with respect to FFELP Loans, any promissory note
evidenced by an electronic promissory note or an electronic record or with respect to which the
signature of the obligor is an electronic signature.

     “Subsequent Purchase Period” means the one year period from and including the first
anniversary of the Effective Date through but excluding the second anniversary of the Effective
Date.

     “Termination Date” means the earlier of the “Termination Date” as set forth in Article
7 and the last day of the Initial Purchase Period or the Subsequent Purchase Period, as applicable.

     “Unmatured Event of Termination” means any event which, with the giving of notice or
lapse of time, or both, would become an Event of Termination.

     [****]

     “Warehouse Indenture” means that certain Amended and Restated Indenture, dated as of
November 4, 2004 (as amended, supplemented or modified), among Collegiate Funding Services
Resources I, LLC, CRC Funding, LLC, CAFCO, LLC, Falcon Asset Securitization Corporation, Jupiter
Securitization Corporation and Park Avenue Receivables Corporation, the financial institutions from
time to time party thereto, JPMorgan Chase Bank, N.A. (formerly known as JPMorgan Chase Bank) and
Citicorp North America, Inc., as funding agents, Citicorp North America, Inc., as agent for
Lenders, The Bank of New York, as indenture trustee, eligible lender trustee and as securities
intermediary, Collegiate Funding Portfolio Administration, L.L.C., as administrator, and Collegiate
Funding Master Servicing, L.L.C., as master servicer.

     “Warehouse Seller” means Collegiate Funding Services Resources I, LLC.

ARTICLE II

STUDENT LOAN SALES

     2.1 Student Loan Sales. On the terms and subject to the conditions of this Agreement
(including Article III hereof), and in express reliance upon the representations, warranties and
covenants set forth herein, during each of the Initial Purchase Period and, if applicable, the
Subsequent Purchase Period, Seller and the Seller Trustee (in its capacity as title holder to such

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Student Loans) agrees to sell to the Purchaser and the Purchaser Trustee and the Purchaser and
the Purchaser Trustee agree to purchase from the Seller, all of the right, title and interest of
each such Person, respectively, in certain Portfolios of Student Loans plus accrued and unpaid
interest thereon, together with all Related Assets associated with such Student Loans, in an
aggregate unpaid principal amount equal to $500,000,000. The Aggregate Purchase Price for all
Portfolios of Student Loans shall be determined as set forth in Appendix A attached hereto;
provided that such Aggregate Purchase Price may be amended, by mutual agreement of the Purchaser
and the Seller, to accommodate proposed changes to borrower benefit or interest rate reduction
programs for Student Loans sold under this Agreement. Portfolios of Student Loans shall be
purchased from the Seller and the Seller Trustee (in its capacity as title holder to such Student
Loans) hereunder by the Purchaser and Purchaser Trustee from time to time during the Initial
Purchase Period and the Subsequent Purchase Period, if applicable, by the execution and delivery of
a preliminary Purchase and Sale Request and Bill of Sale for each purchase of a Portfolio in the
forms set forth in Exhibit A and Exhibit B, respectively. The Sale Date for such
Portfolio of Student Loans shall be (i) the second Business Day following delivery of the
preliminary Purchase and Sale request if such delivery occurs on or prior to 1:00 P.M. (Eastern
Time) or (ii) the third Business Day following delivery of the preliminary Purchase and Sale
request if such delivery occurs after 1:00 p.m. (Eastern Time). On the Sale Date, the Seller shall
deliver to the Purchaser a final Purchase and Sale request reflecting information as of the close
of business on the immediately preceding day (the “Cut-off Date”). However, if the final Purchase
and Sale request is delivered to the Purchaser after 10:00 A.M. (Eastern Time), the Sale Date shall
be the immediately succeeding Business Day.

          A list of the Student Loans contained in such Portfolio, the borrower benefit program or
interest rate reduction program, if any, applicable to the Student Loans shall be set forth on the
applicable Loan Transfer Schedule attached as Schedule A to the Bill of Sale. Subsequent
purchases of Portfolios of Student Loans shall be purchased on a monthly basis, with a minimum
aggregate unpaid principal amount of $50,000,000 for the Student Loans in such Portfolio. The
Purchaser will be entitled to all payments in respect of the Portfolio of Student Loans received
after the applicable Cut-off Date.

     2.2 True Sales. (a) Each of the Seller, Seller Trustee, Purchaser Trustee and the
Purchaser intend the transactions hereunder to constitute true sales of the Student Loans and
Related Assets with respect thereto by the Seller Trustee (on behalf of the Seller) to the
Purchaser Trustee (on behalf of the Purchaser) providing the Purchaser Trustee with all of the
Seller Trustee’s right, title and interest in and to the Student Loans and Related Assets with
respect thereto, and no party hereto intends the transactions contemplated hereunder to be, or for
any purpose to be characterized as, a loan from (i) the Purchaser and/or Purchaser Trustee, on one
hand to (ii) the Seller and/or the Seller Trustee on the other hand.

     (b) In the event (but only to the extent) that the conveyance of Student Loans and the Related
Assets with respect thereto hereunder is characterized by any Governmental Authority as a loan
rather than a sale or contribution, this Agreement shall be deemed to constitute a security
agreement and the Seller and the Seller Trustee shall be deemed hereunder to have granted to the
Purchaser and the Eligible Lender Trustee, and the Seller and the Seller Trustee hereby assign and
grant to the Purchaser, a security interest in and continuing lien on all of their right, title and
interest now or hereafter acquired or existing in to and under all such Student Loans and the

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Related Assets with respect thereto (collectively, the “Purchased Assets”) to secure the
obligations of the Seller and the Seller Trustee to the Purchaser (including the repayment of a
loan deemed to have been purchased by the Purchaser to the Seller and Seller Trustee in an amount
equal to the sum of the Aggregate Purchase Prices paid hereunder which secures the Purchaser’s
rights to receive all collections on and proceeds of the Purchased Assets). Each of the Seller and
the Seller Trustee authorizes the Purchaser to file any and all financing statements deemed
necessary by the Purchaser to perfect the security interest described herein.

     2.3 Reauthorization Event. If Purchaser or Seller reasonably determines that a
Reauthorization Event has occurred, it shall give written notice to the Seller or Purchaser, as
applicable, of the basis for its determination, including appropriate documentation supporting such
determination. Within thirty (30) days after delivery of such notice, the parties shall commence
good faith negotiations to determine a revised method of determining the Aggregate Purchase Price
that will, to the extent possible, retain the benefit of the bargain for the parties. If the
Purchaser and Seller are not able to determine such revised method of determining the Aggregate
Purchase Price after one hundred eighty (180) days of good faith negotiations, then either party
may give written notice to the other that an Event of Termination has occurred.

ARTICLE III

SALE/PURCHASE OF STUDENT LOANS

     3.1 Conditions to Initial Purchase. The purchase of the initial Portfolio hereunder
is subject to the condition precedent that Purchaser shall have received, on or before the initial
Sale Date, the following, and each in form, substance and date satisfactory to Purchaser:

     (a) A copy of the resolutions of the Board of Managers of Seller authorizing the transactions
contemplated hereby, certified by the Secretary or Assistant Secretary of Seller;

     (b) A favorable opinion of in-house counsel to the Seller, dated the initial Sale Date,
substantially in the form of Exhibit F attached hereto;

     (c) A favorable opinion of Stroock & Stroock & Lavan LLP in its capacity as counsel to the
Seller, dated the initial Sale Date, substantially in the form of Exhibit G attached hereto;

     (d) Financing statements on Form UCC-1 naming (i) the Seller as debtor and Purchaser and as a
secured party, (ii) naming Seller Trustee as debtor and Purchaser Trustee as a secured party, (iii)
the Warehouse Seller as debtor and Seller as secured party and (iv) naming Seller Trustee as debtor
and Seller as a secured party, in proper form for filing in the office in which the filings are
necessary or, in the opinion of Purchaser, desirable under the UCC or any comparable law of all
appropriate jurisdictions to perfect the interest of Purchaser in the Purchased Assets transferred
hereunder;

     (e) A search report provided in writing to Purchaser by the applicable filing offices, listing
all effective financing statements that name Seller or Warehouse Seller as debtor and that are
filed in the jurisdictions where Seller and Warehouse Seller, respectively have had their principal
place of business and chief executive offices during the five year period ending on the

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date hereof as well as in the jurisdictions in which the Seller and Warehouse Seller are
“located” as defined in Section 9-307 of the UCC, together with copies of such financing
statements;

     (f) An executed copy of the Servicing Agreement, along with the documents required to be
delivered pursuant to Sections 21(a), (b) and (c) thereof;

     (g) A certificate of the secretary or assistant secretary of Seller certifying to (i) the
names and true signatures of the officers authorized on its behalf to sign this Agreement to be
delivered by it (on which certificate the Purchaser may conclusively rely until such time as the
Purchaser receives notice otherwise from Seller), (ii) a copy of the Certificate of Formation of
Seller, (iii) a copy of the Limited Liability Company Agreement of Seller, (iv) a good standing
certificate for the Seller, issued by the State of Virginia, dated as of a recent date (v) the
resolutions authorizing the transactions pursuant to this agreement have not been repealed or
amended; and

     (h) A copy of each executed Guarantee Agreement of Seller or Seller Trustee and Purchaser or
Purchaser Trustee relating to the Student Loans being sold on the initial Sale Date.

     3.2 Conditions to all Purchases. All purchases hereunder (including the initial
purchase) and Purchaser’s obligations to pay the Aggregate Purchase Price therefor shall be subject
to the following conditions precedent:

     (a) all representations, warranties and statements by or on behalf of Seller contained in this
Agreement shall be true and correct on the applicable Sale Date, and Seller shall be in compliance
with all agreements and covenants contained in this Agreement;

     (b) Purchaser shall have received a certificate from an authorized officer of the Seller
certifying as to the matters set forth in (a) above;

     (c) the entire interest of Seller in each Student Loan in the Portfolio shall have been duly
assigned by endorsement to Purchaser, such endorsement to be without recourse except as provided
herein, and all Student Loan Notes and all other books, records and documents evidencing such
Student Loans and the Related Assets with respect thereto have been delivered to the applicable
Servicer in accordance with the applicable Servicing Agreement. The Purchaser acknowledges that
the Student Loans will be purchased on-system at the Servicer. Accordingly, from and after the
Sale Date, the Student Loans and Student Loan files will continue to be maintained and serviced by
the Servicer;

     (d) The Notice of Release shall be effective with respect to the Student Loans to be purchased
on such Sale Date in accordance with the terms of the Warehouse Indenture;

     (e) Seller shall have complied with the conditions set forth in Section 2.1 hereof;
and

     (f) The Purchaser shall have received a copy of each executed Guarantee Agreement entered into
after the initial Sale Date by the Seller or Seller Trustee and the Purchaser or Purchaser Trustee
relating to the Student Loans being sold on such Sale Date, to the extent such Guarantee Agreement
has not previously been delivered to the Purchaser.

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     By accepting the Aggregate Purchase Price related to the sale of any Portfolio, Seller shall
be deemed to have certified that the conditions contained in this Section 3.2 have been satisfied.
Upon any such acceptance of the Aggregate Purchase Price, title to the Purchased Assets transferred
on such Sale Date shall be vested absolutely in the Purchaser, whether or not such conditions were
in fact so satisfied.

     Unless within sixty (60) days after the applicable Sale Date the Seller is notified to the
contrary, it shall thereafter be presumed that the documents required to be delivered pursuant to
this Agreement were delivered by the Seller in connection with the sale of Student Loans delivered
on the Sale Date; provided, however, that no such presumption shall exist with regard to the
content, completeness, legality, validity, binding effect or enforceability of such documents.

     3.3 Consummation of Sale and Purchase of Portfolios. To consummate the sale and
purchase of a Portfolio of Student Loans, on or before the applicable Sale Date, Seller and the
Seller Trustee shall deliver to Purchaser and Purchaser Trustee such instruments of transfer,
including a bill of sale, in the form attached hereto as Exhibit B, dated the applicable
Sale Date, and a blanket endorsement in the form attached hereto as Exhibit C with respect
to the Portfolio to be sold. On the applicable Sale Date, the Seller and the Seller Trustee shall
at the direction of the Seller, sell, transfer and convey to the Purchaser and Purchaser Trustee
all of the Seller’s and the Seller Trustee’s right, title and interest in, to and under the Student
Loans included in the Portfolio, all accrued and unpaid interest thereon and the Related Assets
with respect thereto free and clear of all Liens. Purchaser shall pay to Seller the Aggregate
Purchase Price for such Portfolio on the related Sale Date, which shall be paid by wire transfer to
an account designated by the Seller. Upon the payment of the Aggregate Purchase Price, the sale and
purchase will be effective.

     3.4 Premium Refund. Notwithstanding the foregoing, if within 60 days of a Student
Loan’s applicable Sale Date a “Refund Event” (as defined below) occurs with respect to such Student
Loan, the Seller shall refund to the Purchaser, within 30 days of Seller’s receipt of Purchaser’s
written request, an amount equal to the product of (i) the dollar amount of the premium paid by
Purchaser for such Student Loan, as determined pursuant to Appendix A, and (ii) a fraction, the
numerator of which is the principal amount received by Purchaser in connection with such Refund
Event and the denominator of which is the principal amount of such Student Loan as of its Cut-off
Date. A “Refund Event” means the refund (by one or more holders of the prior student loans that
have been consolidated into the Student Loans sold to the Purchaser) of some or all of the
principal such previous holder received in connection with such consolidation.

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ARTICLE IV

SELLER REPRESENTATIONS AND WARRANTIES

     4.1 Representations and Warranties of Seller. Seller represents and warrants as of
the date hereof and as of each Sale Date as follows:

     (a) Organization, Powers. Seller is a limited liability company duly organized solely
under the laws of the State of Virginia, is validly existing, is in good standing under the laws of
the State of Virginia, has all necessary corporate power to carry on its present business, is duly
licensed or qualified in all jurisdictions where the nature of its activities require such
licensing or qualifying, and has full power, right and authority to enter into this Agreement, to
sell and assign Student Loans hereunder and to perform each and all of the matters and things
herein provided.

     (b) Seller Authority, etc. The execution, delivery and performance by Seller of this
Agreement and the transactions contemplated hereby and thereby have been duly authorized by all
necessary corporate action and this Agreement constitutes the legal, valid and binding obligations
of Seller enforceable against Seller in accordance with its terms, except to the extent that
enforceability may be limited by bankruptcy, insolvency, reorganization or other laws affecting
creditors’ rights generally and general principles of equity, regardless of whether such
enforceability is considered in a proceeding in equity or law.

     (c) Compliance with Laws and Contracts. The execution, delivery and performance by
Seller of this Agreement does not and will not (i) violate any provision of any law, rule,
regulation, order, writ, judgment, injunction, decree, determination or award to which Seller or
its property is subject, or of the articles of formation of Seller; (ii) result in a breach of or
constitute a default under the provisions of any indenture, loan or credit agreement or any other
agreement, lease or instrument to which Seller may be or is subject or by which it, or its
property, is bound; or (iii) result in, or require, the creation or imposition of any Lien on or
with respect of any of the properties of Seller, except as contemplated by this Agreement. Seller
is not in violation of, or in default under, any such law, rule, regulation, order, writ, judgment,
injunction, decree, determination or award or any such indenture, agreement, lease or instrument.

     (d) Governmental Approvals. Seller has obtained all authorizations, consents,
approvals, licenses, exemptions of or filings or registrations with all governmental commissions,
regulatory bodies, boards, bureaus, agencies and instrumentalities, domestic or foreign, necessary
to the conduct of its business or necessary to the valid execution, delivery and performance by
Seller of this Agreement (the “Approvals”), and such Approvals remain in full force and effect.

     (e) Litigation. There is no action, suit, proceeding, inquiry or investigation at law
or in equity or before or by any court, public board or body pending or, to the knowledge of
Seller, overtly threatened in writing against or affecting the Seller wherein an unfavorable
decision, ruling or finding would have a Material Adverse Effect or which affects, or purports to
affect, the validity or enforceability against Seller of this Agreement.

     (f) Perfected Interest. Immediately prior to the sale thereof by Seller to Purchaser
hereunder, each Student Loan sold to Purchaser hereunder and the Related Assets related thereto, is
owned by Seller (or, if applicable, by the Seller Trustee on behalf of Seller), free and clear of
any adverse claim, judgment or Lien other than any Lien created hereby and any Lien to be released
pursuant to the Notice of Release delivered on the applicable Sale Date. Except for the filing of
the financing statements referred to in Section 3.1(d), no further action, including any filing or
recording of any document, is necessary in order to establish, protect and perfect the interest of
Purchaser (or, if applicable, the Eligible Lender Trustee on behalf of Purchaser), as a

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first priority ownership interest in any applicable jurisdiction, including, without
limitation, any purchaser from, or creditor of, Seller (or, if applicable, by the Seller Trustee on
behalf of Seller). No financing statement or other instrument similar in effect covering any of
the Student Loans sold hereunder or any interest therein is on file in any recording office except
such as may be filed in favor of the Purchaser (in connection with this Agreement) or as has been
filed under the Warehouse Indenture, which Lien shall be released pursuant to the Notice of Release
delivered on the applicable Sale Date.

     (g) Accuracy of Information. All information supplied by, or on behalf of, Seller in
writing to Purchaser in connection with this Agreement or the transactions contemplated hereby is
true and accurate in all material respects as of the date thereof stated or certified. No
information, exhibit or report furnished by or on behalf of Seller to the Purchaser in connection
with this Agreement contained any material misstatement.

     (h) Eligible Student Loans. Each Student Loan transferred by Seller (or, if
applicable, by the Seller Trustee on behalf of Seller) to Purchaser hereunder was an Eligible
Student Loan as of the applicable Sale Date for such Student Loan. Each Student Loan sold to
Purchaser hereunder has been duly executed and delivered and constitutes the legal, valid and
binding obligation of the Obligor thereof, enforceable in accordance with its terms.

     (i) Borrower Benefits. The Loan Transfer Schedule attached as Schedule I to the
applicable Bill of Sale identifies each Student Loan to which any borrower benefit program or
interest rate reduction program applies. The precise terms of such programs are set forth in
Exhibit D attached hereto. No borrower benefits or interest rate reductions have accrued
and not been paid and other than as set forth on Exhibit D (as such Exhibit may be amended
from time to time by agreement between Seller and Purchaser), no other borrower benefits apply.

     (j) Capital of Seller. Both before and after giving effect to each transfer of
Purchased Assets hereunder, Seller is and will be Solvent.

     (k) Material Adverse Effect. No Material Adverse Change in the condition of the
Seller has occurred and is continuing since the date of its formation.

     (l) Event of Termination. No Event of Termination or Unmatured Event of Termination
has occurred.

     (m) Title to Student Loans. The transfer of Student Loans and Related Assets with
respect thereto constitutes the absolute transfer of all right, title and interest of the Seller
(and the Seller Trustee with respect thereto) of such Student Loans and Related Assets with respect
thereto to the Purchaser, free and clear of any Lien or other adverse claim other than a Lien under
the Warehouse Indenture, which Lien shall be released pursuant to the Notice of Release delivered
on the applicable Sale Date.

     (n) Endorsement of Student Loans. The Seller has endorsed each Student Loan
transferred hereto to the Purchaser.

     (o) Electronic Signatures. To the extent any Student Loan that is a FFELP Loan
transferred pursuant to this Agreement is evidenced by an electronic promissory note or an

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electronic record, or to the extent the signature of the obligor on any Student Loan Note
representing a FFELP Loan that is transferred pursuant to this Agreement is an electronic
signature, the Seller has complied (and has ensured that such Student Loan and related Student Loan
Note complies) with all regulations, standards and other requirements provided by the applicable
Guarantor or the Department relating to the validity and enforceability of such Student Loan Note,
including without limitation the US. Department of Education Standards for Electronic Signatures in
Electronic Student Loan Transactions, as revised or supplemented from time to time.

     (p) Physical Possession. Physical custody and possession of the Student Loans
(inclusive of the promissory notes evidencing such loans and the related documentation in
connection with each thereof) are being held by the Servicer in the manner specified in the
Servicing Agreement.

     (q) Marketable Title. Each Student Loan is beneficially owned and held by the Seller,
and other than for liens being released on or prior to the related Sale Date, the Seller had good
and marketable title, and the Seller Trustee held record title, to each Student Loan and Seller had
full right and authority to sell and assign the same free and clear of all liens, pledges,
encumbrances or security interest of any nature.

     4.2 Reassignment upon Breach. Each of Seller and the Purchaser, as the case may be,
shall inform the others promptly, in writing, upon the discovery of any breach in any material
respects of the representations and warranties made by Seller pursuant to Section 4.1. Following
the occurrence of any such breach, the Student Loan as to which such representation and warranty
relates shall be reassigned to and repurchased by the Seller (or the Seller Trustee on its behalf)
(a “Reassignment”) at such time. In consideration of and simultaneously with the
Reassignment of such Student Loan, Seller shall pay to the Purchaser, by wire transfer to an
account designated by Purchaser, an amount equal to the unpaid principal balance of such Student
Loan, plus accrued and unpaid interest thereon, plus any unamortized premium thereon (collectively,
the “Reassignment Amount”). The unamortized premium for a Student Loan at the time of the
repurchase shall be determined by multiplying the premium by a fraction, the numerator of which is
the number of months remaining in the repayment period and the denominator of which is the total
number of months in the repayment period. Purchaser and Eligible Lender Trustee shall execute such
documents reasonably requested by Seller in order to effect such reassignment and to release their
interests therein. The remedy set forth in this subsection shall be the sole remedy of the
Purchaser for the Seller’s breach of any representations or warranties set forth in this Agreement.

ARTICLE V

PURCHASER REPRESENTATIONS AND WARRANTIES

     5.1 Representations and Warranties of Purchaser. Purchaser represents and warrants as
of the date hereof and as of each Sale Date as follows:

     (a) Organization, Powers. Purchaser is a national bank association duly organized,
validly existing and in good standing under the laws of the United States of America, and has full

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power, right and authority to enter into this Agreement, to purchaser the Student Loans
hereunder and to perform each and all of the matters and things herein provided.

     (b) Purchaser Authority, etc. The execution, delivery and performance by Purchaser of
this Agreement and the transactions contemplated hereby and thereby have been duly authorized by
all necessary action and this Agreement constitutes the legal, valid and binding obligations of
Purchaser enforceable against Purchaser in accordance with its terms, except to the extent that
enforceability may be limited by bankruptcy, insolvency, reorganization or other laws affecting
creditors’ rights generally and general principles of equity, regardless of whether such
enforceability is considered in a proceeding in equity or law.

     (c) No Violation. The execution, delivery and performance by Purchaser of this
Agreement does not and will not violate any provision of any law, rule, regulation, order, writ,
judgment, injunction, decree, determination or award to which would have a material adverse effect
on the performance by Purchaser of its obligations under this Agreement, or of the articles of
association or bylaws of Purchaser.

ARTICLE VI

ADDITIONAL OBLIGATIONS AND RIGHTS IN RESPECT OF THE SOLD

STUDENT LOANS

     6.1 Obligation of Seller to Forward Payments. Seller and the Seller Trustee shall
promptly (but in any event, no later than the close of business on the second Business Day after
receipt thereof) remit, or cause to be remitted, to Purchaser all funds received by Seller and the
Seller Trustee on or after the applicable Sale Date which constitute Collections with respect to
any Student Loan sold hereunder, and agrees that all such payments shall be deemed to be held in
trust for Purchaser.

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

     6.3 Rights of Purchaser and Servicer. Seller and the Seller Trustee authorizes
Purchaser and the Servicer or their respective designees to take any and all steps in Seller’s and
the Seller Trustee’s name necessary or desirable in their respective determination to collect all
amounts due under any Student Loan sold hereunder, including, without limitation, endorsing
Seller’s and the Seller Trustee’s name on checks and other instruments representing Collections and
enforcing such Student Loans and any related guarantees. Seller and the Seller Trustee hereby
grants to Servicer an irrevocable power of attorney, with full power of substitution, coupled with
an interest, to take in the name of Seller and the Seller Trustee all steps necessary or advisable
to endorse, negotiate or otherwise realize on any writing or other right of any kind held or
transmitted by Seller or the Seller Trustee or transmitted or received by Purchaser

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(whether or not from Seller or the Seller Trustee) in connection with any Student Loan sold
hereunder.

     6.4 Further Action Evidencing Purchases. Seller and the Seller Trustee agree that
from time to time, at its expense, they will promptly execute and deliver all further instruments
and documents, and take all further action that Purchaser may reasonably request in order to
perfect, protect or more fully evidence the sale of Student Loans purchased by Purchaser hereunder,
or to enable Purchaser or its designee to exercise or enforce any of its rights hereunder. If
Seller or the Seller Trustee fails to perform any of its agreements or obligations under this
Agreement, Purchaser or its designee may (but shall not be required to) itself perform, or cause
performance of, such agreement or obligation, and the expenses of Purchaser or its designee
incurred in connection therewith shall be payable by Seller.

     6.5 Regulation AB. If more than 20% of the assets (measured by principal amount)
included in any securitization sponsored by Purchaser or its affiliates consist of Student Loans
originated by Seller or its affiliates, Seller shall provide to Purchaser, upon written request,
the information concerning Seller and its affiliates required by Item 1110 of Regulation AB, it
being understood that Seller shall be deemed to have satisfied such obligation if it furnishes
Purchaser with the same information that Seller and its affiliates use in connection with
securitization transactions in which they are the sponsor.

ARTICLE VII

TERMINATION

     7.1 Termination of this Agreement. Unless otherwise terminated pursuant to Section
7.2, the rights and obligations of Seller and the Seller Trustee to sell Student Loans hereunder
and the rights and obligations of the Purchaser to purchase Student Loans hereunder shall
automatically terminate on last day of the Initial Purchase Period; provided, however, that unless
either Purchaser or Seller shall give notice to the other party in writing at least ninety (90)
days prior to the last day of the Initial Purchase Period, the respective rights and obligations of
the Seller and Purchaser to sell and purchase Student Loans hereunder shall not terminate
automatically on the last day of the Initial Purchase Period but shall terminate automatically on
the last day of the Subsequent Purchase Period.

     7.2 Events of Termination. If any of the following events (each an “Event of
Termination”) shall occur:

     (a) Seller or Purchaser shall fail to make any payment or deposit to be made by it hereunder
when due and such failure shall continue for three (3) Business Days after Seller or Purchaser, as
the case may be, has knowledge or has received notice thereof;

     (b) Seller or Purchaser shall fail to perform or observe any other term, covenant or agreement
contained in this Agreement;

     (c) Any representation or warranty made or deemed to be made by Seller or Purchaser under or
in connection with this Agreement, or any information or report delivered

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pursuant hereto shall prove to have been false or incorrect in any material respect when made
or deemed to be made;

     (d) The Purchaser shall cease to have a valid and perfected first priority ownership interest
in each Student Loan transferred hereunder and the Related Assets and Collections with respect
thereto for the benefit of the Purchaser;

     (e) (i) Seller shall admit in writing its inability to pay its debts generally, or shall make
a general assignment for the benefit of creditors; or any proceeding shall be instituted by or
against Seller seeking to adjudicate it as bankrupt or insolvent, or seeking liquidation, winding
up, reorganization, arrangement, adjustment, protection, relief, or composition of it or its debts
under any law relating to bankruptcy, insolvency or reorganization or relief of debtors or seeking
the entry of an order for relief or the appointment of a receiver, trustee, or other similar
official for it or for any substantial part of its property which proceeding has not been dismissed
or stayed within thirty (30) days; or Seller shall take any corporate action to authorize any of
the actions set forth above in this paragraph (e)(i);

     (ii) Purchaser shall admit in writing its inability to pay its debts generally, or shall make a
general assignment for the benefit of creditors; or any proceeding shall be instituted by or
against Purchaser seeking to adjudicate it as bankrupt or insolvent, or seeking liquidation,
winding up, reorganization, arrangement, adjustment, protection, relief, or composition of it or
its debts under any law relating to bankruptcy, insolvency or reorganization or relief of debtors
or seeking the entry of an order for relief or the appointment of a receiver, trustee, or other
similar official for it or for any substantial part of its property which proceeding has not been
dismissed or stayed within thirty (30) days; or (ii) Purchaser shall take any corporate action to
authorize any of the actions set forth in above in this paragraph (e)(ii);

     (f) There shall have occurred any event or circumstance that has a Material Adverse Effect on
the Seller, the Seller Trustee or the Purchaser;

     (g) Seller or Purchaser shall send notice to the other party that an Event of Termination has
occurred pursuant to Section 2.3; and

     (h) Purchaser shall have terminated the Servicing Agreement pursuant to Section 10.b. thereof;

     then, in any such event, the Purchaser or Seller, as applicable, may, by notice to Seller or
Purchaser, as applicable, declare the “Termination Date” to have occurred, except that, in the case
of any event described in subsection (e)(i) or (ii) above, the Termination Date shall be deemed to
have occurred automatically upon the occurrence of such event, and in the case of an event
described in subsection (h), the Termination Date shall be deemed to have occurred at the sole
discretion of the Purchaser, as evidenced in writing. Upon any such declaration or automatic
occurrence, the Purchaser or Seller, as applicable, shall have, in addition to all other rights and
remedies under this Agreement or otherwise, all other rights and remedies provided under the UCC of
the applicable jurisdiction and other applicable laws, which rights shall be cumulative. Upon the
occurrence of the Termination Date, all amounts owing hereunder shall be immediately due and
payable.

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ARTICLE VIII

PURCHASER REMEDIES

     8.1 Repurchase by Seller.

     (a) Seller shall repurchase any Student Loan sold to Purchaser hereunder in the event that:

     (i) Any representation or warranty made or furnished by the Seller in or pursuant to
this Agreement shall prove to have been materially false, incorrect or misleading as to any
such Student Loan when made or deemed made;

     (ii) Purchaser shall fail to maintain a first priority perfected ownership interest in
a Student Loan sold to Purchaser hereunder, free and clear of any Lien due to the failure
due to acts or omissions of Seller or the Seller Trustee; or

     (iii) Any Guarantor refuses to honor all or part of a claim filed with respect to such
Student Loan (including any claim for Interest Subsidy Payments, Special Allowance Payments,
or Guarantee Payments) on account of any circumstance or event that occurred prior to the
sale of such Student Loan to the Purchaser; or

     (b) Within thirty (30) days of receipt of notice containing a repurchase request from the
Purchaser, Seller shall repurchase such Student Loan by paying to the Purchaser 100% of the then
outstanding principal balance of such Student Loan, plus any unamortized premium paid by the
Purchaser to the Seller in connection with the purchase of such Student Loan by the Purchaser
(determined as set forth in Section 4.2), plus uncapitalized borrower interest accrued on such
Student Loan from the Sale Date to and including the date of repurchase, plus, if Seller shall
unreasonably refuse to repurchase such Student Loan as required hereunder, then Seller shall become
responsible for any reasonable attorneys’ fees, legal expenses, court costs, servicing fees or
other expenses incurred by the Purchaser or its designated agent in connection with the purchase or
repurchase of such Consolidation Loan (“Repurchase Price”).

     (c) In connection with the foregoing, the Purchaser (or its agent) shall send the Seller
notice by certified mail of the repurchase request of such Student Loan and the basis therefor.
Such notice shall describe each applicable Student Loan subject to repurchase, the Repurchase Price
for such Student Loan, and the reasons for the repurchase request. If the repurchase request is
based upon Guarantor’s refusal to honor all or part of a claim, such notice also shall include
copies of any written communications from the Guarantor related to the claim rejection. Such
notice shall be sent within thirty (30) Business Days after the date on which the Purchaser has
knowledge of the basis giving rise to the Seller’s obligation to repurchase or learns of the claim
rejection and shall allow the Seller not less than thirty (30) days to cure same. If the Seller is
unable to effect such a cure within such period, the Seller shall promptly repurchase hereunder and
the Purchaser shall re-convey the Student Loan to the Seller or the Seller’s designated agent,
together with, all claims, rights, and interest the Purchaser owns in the Student Loan concurrently
with the receipt by the Purchaser of full payment of the Repurchase Price. The

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Repurchase Price shall be paid by wire transfer of immediately available funds to an account
designated by the Purchaser.

     (d) Upon payment of the repurchase price, the Purchaser shall promptly deliver to Seller or
Seller’s designated agent the Related Assets for each repurchased Student Loan, endorsed to the
order of Seller or its designee in any form reasonably requested by Seller, and all documentation
relating to the administration of the Student Loan by the Purchaser subsequent to the repurchase
date, including without limitation, a payment history and a collection history.

     (e) The liability of the Purchaser, if any, in connection with losses the Seller incurs on
repurchased Student Loans shall be limited to the actual loss or damage occurring as a result of
the negligence or willful misconduct of the Purchaser, or of its agents or designees, in handling
or safekeeping such Student Loans and, to the extent that such Student Loan has not been serviced
by Servicer, in the servicing of such Student Loans after the applicable Sale Date; provided,
however, that if any defect that gives rise to the Seller’s repurchase obligation would have
necessitated any non-standard servicing, the Purchaser will not be liable for the failure to
perform such non-standard servicing.

     (f) In connection with the repurchase of a Student Loan under paragraphs (a)-(c) of this
Section 8.1, and as a condition to the payment by the Seller of the Repurchase Price specified
therein, the Purchaser shall represent and warrant to the Seller or its designee, with respect to
such Consolidation Loan, that as of the date of repurchase:

     (i) The Purchaser has not transferred any right, title or interest in the Student Loan
since purchasing it from Seller;

     (ii) The Purchaser has full right and authority to sell, assign and transfer all of
their respective rights, title and interest in such Student Loan back to the Seller;

     (iii) The Purchaser is transferring such Student Loan free and clear of any and all
Liens of any nature encumbering such Student Loan resulting from the conduct of the
Purchaser, or suffered by Purchaser after the Sale Date; and

     (iv) The Purchaser has not altered or modified the terms of the Student Loan Related
Assets in any material respect since the purchase from the Seller except to the extent
contemplated by the Higher Education Act nor has the Purchaser satisfied, canceled or
subordinated such Student Loan, in whole or in part, or executed any instrument of release,
cancellation or satisfaction in respect thereto.

     (g) The remedy set forth in this Section 8.1 shall be the sole remedy of the Purchaser for the
occurrence of the events set forth in Section 8.1(a)(i)-(iii), except that, if the Seller is unable
to cure a condition causing a claim rejection that solely affects the accrued interest on a Student
Loan, the Seller shall reimburse the Purchaser for the amount of such accrued interest identified
in a notice described in Section 8.1(c) as not payable by the Guarantor due to such condition,
within thirty (30) days of the Seller’s receipt of such notice.

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     8.2 Indemnity of Seller. Without limiting any other rights that any such Person may
have hereunder or under applicable law (including, without
limitation, the right to recover damages for breach of contract), Seller hereby agrees to indemnify Purchaser, all of its
respective Affiliates, and all successors, transferees, participants and assigns and all officers,
directors, employees and agents of any of the foregoing (each a “Purchase and Sale Indemnified
Party”), within thirty (30) days following written notice demand accompanied by supporting
documentation, from and against any and all damages, losses, claims, liabilities and related costs
and expenses, including reasonable attorneys’ fees and disbursements (all of the foregoing being
collectively referred to as “Indemnified Amounts”) awarded against or incurred by any of them
arising out of or relating to the following, except to the extent that such Indemnified Amounts
result from the gross negligence or willful misconduct of the Purchase and Sale Indemnified Party:

     (a) any claim or action of whatever sort arising out of or in connection with the origination
or servicing of any Student Loan or any other services which gave rise to or are the subject of any
Student Loan to the extent such origination, servicing or services were provided by Seller or an
Affiliate of Seller on or before the sale of such Student Loans by Seller, or, if such origination,
servicing or services were provided by a Person other than Seller or an Affiliate of Seller, to the
extent Seller is entitled to recover such Indemnified Amounts from such non-Affiliate or another
Person, services the provision of which occurred on or before the sale of such Student Loans by
Seller and gave rise to or are the subject of any Student Loan;

     (b) the failure to pay when due any taxes and fees payable by the Seller in connection with
the Purchased Assets or the execution, delivery, filing and recording of this Agreement or the
other agreements and documents to be delivered hereunder (including any UCC financing statements);

     (c) the payment by such Indemnified Party of taxes, including, without limitation, any taxes
imposed by any jurisdiction on amounts payable and any liability (including penalties, interest and
expenses) arising therefrom or with respect thereto to the extent caused by the Seller’s actions or
failure to act in breach of this Agreement;

     (d) the commingling of Collections with any other funds of the Seller or any Affiliate of the
Seller;

     (e) any claim brought by any Person arising from any activity by the Seller or an Affiliate of
Seller in servicing, administering or collecting any Student Loan; or

     (f) the sale or pledge by the Seller of any Student Loan in violation of any applicable law,
rule or regulation.

ARTICLE IX

MISCELLANEOUS

     9.1 Amendments, Etc. No amendment or waiver of any provision of this Agreement nor
consent to any departure by Seller or Purchaser therefrom shall in any event be effective unless
the same shall be in writing and signed by: (a) each of the parties hereto, (b) Purchaser and
Seller Trustee (with respect to a waiver or consent by them) or Seller (with respect to a
waiver or consent by it), as the case may be, and then such waiver or consent shall be
effective only in the specific instance and for the specific purpose for which given.

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     9.2 Notices, Etc. All notices and other communications provided for hereunder shall,
unless otherwise stated herein, be in writing (including facsimile communication) and shall be
personally delivered or sent by express mail or courier or by certified mail, postage-prepaid, or
by facsimile, to the intended party at the address or facsimile number of such party set forth
below or at such other address or facsimile number as shall be designated by such party in a
written notice to the other parties hereto:

Collegiate Funding Services, L.L.C. as Seller

10304 Spotsylvania Avenue, Suite 100

Fredericksburg, Virginia 22408

Attention: Kevin Landgraver

Facsimile: (540) 374-2021

JPMorgan Chase Bank, N.A. as Purchaser

c/o J.P. Morgan Securities, Inc.

270 Park Avenue, 10th Floor

New York, New York 10017

Attention: Asset Backed Securities Group

Facsimile: 212-834-6564

The Bank of New York, as Seller Trustee

c/o The Bank of New York Trust Company, N.A.

10161 Centurion Parkway

Jacksonville, Florida 32256

Attention: Clay Cardozo

Facsimile: (904) 645-1931

     All such notices and communications shall be effective, (i) if personally delivered or sent by
express mail or courier or if sent by certified mail, when received, and (ii) if transmitted by
facsimile, when sent, receipt confirmed by telephone or electronic means.

     9.3 No Waiver; Cumulative Remedies. No failure on the part of Purchaser, Seller,
Seller Trustee or Purchaser Trustee, and no delay in exercising, any right hereunder shall operate
as a waiver thereof (unless waived in writing); nor shall any single or partial exercise of any
right hereunder preclude any other or further exercise thereof or the exercise of any other right.
The remedies herein provided are cumulative and not exclusive of any remedies provided by law.

     9.4 Binding Effect; Assignability; Survival. This Agreement shall be binding upon and
inure to the benefit of Purchaser, Seller and their respective successors and permitted assigns.
Seller may not assign its rights hereunder or any interest herein without the prior written consent
of Purchaser. Except as set forth in the succeeding sentence, Purchaser may not assign its rights
hereunder or any interest herein without the prior written consent of Seller. Without obtaining
the consent of Seller but with the prior written notice to Seller, Purchaser may assign

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its rights hereunder with respect to one or more Student Loans to a special purpose entity
that is an affiliate of the Purchaser in connection with a securitization of such Student Loans.
For the purposes of the foregoing, an affiliate of the Purchaser is an entity that controls, is
controlled by or is under common control with the Purchaser, where the term “control” means the
ownership of or right to direct the voting of at least a majority of the voting power of the
Purchaser or such entity, as applicable. This Agreement shall create and constitute the continuing
obligations of the parties hereto in accordance with its terms, and shall remain in full force and
effect until the Termination Date. The rights and remedies with respect to any breach of any
representation and warranty made by Seller pursuant to this Agreement and the indemnification and
payment provisions of Article VIII shall be continuing and shall survive any termination of this
Agreement.

     9.5 Governing. Law. THIS AGREEMENT, INCLUDING THE RIGHTS AND DUTIES OF THE PARTIES
HERETO, SHALL BE GOVERNED BY, AND CONSTRUED IN ACCORDANCE WITH, THE LAWS OF THE STATE OF NEW YORK
WITHOUT REGARD TO CONFLICT OF LAWS PRINCIPLES).

     9.6 Waiver Of Jury Trial: Submission to Jurisdiction. EACH PARTY HERETO EXPRESSLY
WAIVES ANY RIGHT TO A TRIAL BY JURY IN ANY ACTION OR PROCEEDING TO ENFORCE OR DEFEND ANY RIGHTS
UNDER THIS AGREEMENT OR UNDER ANY AMENDMENT, INSTRUMENT OR DOCUMENT DELIVERED OR WHICH MAY BE IN
THE FUTURE BE DELIVERED IN CONNECTION HEREWITH OR ARISING FROM ANY RELATIONSHIP EXISTING IN
CONNECTION WITH THIS AGREEMENT AND AGREES THAT ANY SUCH ACTION OR PROCEEDING SHALL BE TRIED BEFORE
A COURT AND NOT BEFORE A JURY. EACH PARTY HERETO SUBMITS TO THE NON-EXCLUSIVE JURISDICTION OF THE
COURTS OF THE STATE OF NEW YORK AND THE COURTS OF THE UNITED STATES LOCATED IN THE STATE OF NEW
YORK FOR THE PURPOSE OF ADJUDICATING ANY CLAIM OR CONTROVERSY ARISING IN CONNECTION WITH THIS
AGREEMENT OR ANY OTHER TRANSACTION DOCUMENT OR ANY OF THE TRANSACTIONS CONTEMPLATED HEREBY AND
THEREBY AND, FOR SUCH PURPOSE, HEREBY WAIVES ANY OBJECTION BASED ON FORUM NON CONVENIENS, AND ANY
OBJECTION TO VENUE THEREIN OF ANY ACTION INSTITUTED HEREUNDER AND CONSENTS TO THE GRANTING OF SUCH
LEGAL OR EQUITABLE RELIEF AS IS DEEMED APPROPRIATE BY THE COURT.

     9.7 Captions and Cross References; Incorporation by Reference. The various captions
(including, without limitation, the table of contents) in this Agreement are provided solely for
convenience of reference and shall not affect the meaning or interpretation of any provision of
this Agreement. References in this Agreement to any underscored Section, Exhibit, Schedule or
Appendix are to such Section, Exhibit, Schedule or Appendix of this Agreement, as the case may be.
The Exhibits, Schedules and Appendices hereto are hereby incorporated by reference into and made a
part of this Agreement.

     9.8 Liability of the Seller Trustee and Purchaser Trustee. The Seller and the
Purchaser acknowledge that each of the Seller Trustee and Purchaser Trustee is entering into this
Agreement solely in the capacity as trustee for Seller and Purchaser, respectively and not in
their

22

 

individual capacity. The representations, warranties and covenants of the Seller Trustee or
Purchaser Trustee are made solely at the direction of Seller and Purchaser, respectively, without
independent investigation of the Seller Trustee or Purchaser Trustee, and the Seller Trustee and
Purchaser Trustee has undertaken only those duties required of it under its respective trust
agreement. Accordingly, all recourse and remedies, if any, of Purchaser or Seller, as applicable,
hereunder shall be available only against Seller or Purchaser, as applicable, and the assets of the
trust estate held by the Seller Trustee or Purchaser Trustee for the benefit of Seller or
Purchaser, respectively, and not against the Seller Trustee or Purchaser Trustee in its individual
capacity.

     9.9 No Solicitation. From and after the related Sale Date, the Seller agrees that it
will not cause any action to be taken by any of its Affiliates, and that it will not take any
action or permit or cause any action to be taken by any of its agents or Affiliates, or by any
independent contractors on the Seller’s behalf, to personally, by telephone or mail (via electronic
means or otherwise), solicit the borrower or obligor under any Student Loan to refinance such
Student Loan in a Portfolio, in whole or in part, without (i) the prior written consent of the
Purchaser; or (ii) written notice from the related borrower or obligor under a Student Loan in a
Portfolio of such party’s intention to refinance such Student Loan. It is understood and agreed
that all rights and benefits relating to the specific solicitation of any Student Loans in a
Portfolio and the attendant rights, title and interest in and to the list of such Student Loans and
data relating thereto shall be transferred to the Purchaser pursuant hereto on the Sale Date and
the Seller shall take no action to undermine these rights and benefits. Notwithstanding the
foregoing, it is understood and agreed that the Seller, or any of its respective Affiliates:

     (a) may advertise its availability for handling financings or refinancings of Student Loans,
including the promotion of terms it has available, so long as it does not specifically target
Student Loans in a Portfolio; and

     (b) may provide information and otherwise cooperate with individual students who contact it
about prepaying their student loans by advising them of refinancing terms and other programs that
are available.

          Promotions undertaken by the Seller or by any affiliate of the Seller which are directed to
the general public at large (including, without limitation, mass mailing (including based on the
Internet and other electronic means ), affinity marketing, alumni relations, newspaper, radio and
television advertisements), shall not constitute solicitation under this Section.

     9.10 Integration. This Agreement contains a final and complete integration of all
prior expressions by the parties hereto with respect to the subject matter hereof and shall
constitute the entire understanding among the parties hereto with respect to the subject matter
hereof, superseding all prior oral or written understandings.

     9.11 Execution in Counterparts. This Agreement may be executed in any number of
counterparts and by the different parties hereto in separate counterparts, each of which when so
executed shall be deemed to be an original and all of which when taken together shall constitute
one and the same agreement.

23

 

     9.12 Confidentiality. Each of the parties hereto agrees that it shall not (and shall
not allow any of its Affiliates to) disclose to any Person or entity the existence of this
Agreement or the terms hereof or any related written information, or the existence and status of
any ongoing negotiations between the Purchaser and Seller concerning the Transaction (collectively,
the “Protected Information”), except (i) as mutually agreed by the Purchaser and Seller, or
(ii) to the respective parties’ and its Affiliates’ employees, officers, directors, advisors,
representatives, accountants, legal counsel and agents who agree to be bound by the provisions of
this Section and to use such Protected Information only in connection with the Transaction and not
for any other purpose. Protected Information shall not include, however, information that is a
matter of general public knowledge or has heretofore been or is hereafter published in any source
generally available to the public other than as a result of a disclosure by any person required to
keep such information confidential as provided in this section. The parties hereto may disclose
Protected Information to the extent required by applicable law, regulation, subpoena or other legal
process, it being understood that Seller and its affiliates may file the Agreement with the
Securities and Exchange Commission as a standard contract.

     9.13 Indemnification and Contribution. The Seller hereby agrees to enter into a
separate indemnification agreement containing terms and conditions consistent with industry
standards for any information provided pursuant to Section 6.5 above, if more than 20% of the
assets (measured by principal amount) included in any securitization sponsored by Purchaser or its
affiliates consist of Student Loans purchased by Purchaser pursuant to this Agreement.

     9.14 [****]

[REMAINDER OF PAGE LEFT INTENTIONALLY BLANK]

24

 

IN WITNESS WHEREOF, the parties have caused this Agreement to be executed by their respective
officers thereunto duly authorized, as of the date first above written.

	 	 	 	 	 	 	 
	 	 	COLLEGIATE FUNDING SERVICES, L.L.C.	 	 
	 	 	as Seller	 	 
	 
	 	 	 	 	 	 
	 

	 	By:	 	 	 	 
	 	 	 	 	 	 	 
	 

	 	 	 	Name:	 	 
	 

	 	 	 	Title:	 	 
	 
	 	 	 	 	 	 
	 	 	JPMORGAN CHASE BANK, N.A.	 	 
	 	 	as Purchaser	 	 
	 
	 	 	 	 	 	 
	 

	 	By:	 	 	 	 
	 	 	 	 	 	 	 
	 

	 	 	 	Name:	 	 
	 

	 	 	 	Title:	 	 
	 
	 	 	 	 	 	 
	 	 	THE BANK OF NEW YORK,	 	 
	 	 	not in its individual capacity but solely as	 	 
	 	 	Purchaser Trustee	 	 
	 
	 	 	 	 	 	 
	 

	 	By:	 	 	 	 
	 	 	 	 	 	 	 
	 

	 	 	 	Name:	 	 
	 

	 	 	 	Title:	 	 
	 
	 	 	 	 	 	 
	 	 	JPMORGAN CHASE BANK, N.A.,	 	 
	 	 	not in its individual capacity but solely as	 	 
	 	 	Purchaser Trustee	 	 
	 
	 	 	 	 	 	 
	 

	 	By:	 	 	 	 
	 	 	 	 	 	 	 
	 

	 	 	 	Name:	 	 
	 

	 	 	 	Title:	 	 

SIGNATURE PAGE

PURCHASE AND SALE AGREEMENT

 

 

APPENDIX A

AGGREGATE PURCHASE PRICE CALCULATION

Aggregate Purchase Price Calculation

The Aggregate Purchase Price for a Portfolio of Student Loans shall equal the sum
of (A) the product of (i) the aggregate principal balance of the Student Loan
Portfolio as of the applicable Cut-off Date and (ii) the Premium Percentage
determined in accordance with the following chart, and (B) all accrued interest on
the Portfolio of Student Loans as of the applicable Cut-off Date.

PREMIUM PERCENTAGE*

	 	 	 	 	 	 	 	 	 
	Average	 	 	 	 	 	 
	Indebtedness of	 	[****]%-	 	[****]% -	 	[****]% -	 	[****]% -
	Borrower	 	[****]% ACH	 	[****]% ACH	 	[****]% ACH	 	[****]% ACH
	[****]

	 	[****]
	 	[****]
	 	[****]
	 	[****]
	[****]

	 	[****]
	 	[****]
	 	[****]
	 	[****]
	[****]

	 	[****]
	 	[****]
	 	[****]
	 	[****]
	[****]

	 	[****]
	 	[****]
	 	[****]
	 	[****]
	[****]

	 	[****]
	 	[****]
	 	[****]
	 	[****]

 

			
	*	 	% ACH shall be determined based upon the weighted average principal balance of the applicable
Portfolio of Student Loans for which the applicable borrowers make payments by ACH, determined as
of the date of origination of each such Student Loan.

 

 

APPENDIX B

GUARANTORS

American Student Assistance

Great Lakes Higher Education Guaranty Corporation

Texas Guaranteed Student Loan Corporation

 

 

EXHIBIT A

FORM OF PURCHASE

AND SALE REQUEST

Ladies and Gentlemen:

     All capitalized terms used but not otherwise defined herein which are defined in the Purchase
and Sale Agreement, dated as of September___, 2005 among Collegiate Funding Services, L.L.C., as
Seller, The Bank of New York, as Seller Trustee, JPMorgan Chase Bank, N.A. as Purchaser
(“Purchaser”) and                     , as Purchaser Trustee (as amended, modified or supplemented from time
to time, the “Purchase Agreement”), have the same meanings when used herein.

     The undersigned refers to the Purchase Agreement and hereby gives you notice pursuant to
Section 2.1 of the Purchase Agreement that the undersigned hereby requests that Purchaser purchase
an additional Portfolio of Student Loans (the “Requested Purchase”) under the Purchase Agreement,
and in that connection sets forth below the information relating to the Requested Purchase as
required by Section 2.1 of the Purchase Agreement:

	 	(i)	 	The Sale Date of the Requested Purchase is [                    ].
	 
	 	(ii)	 	Annex 1 hereto contains a list of the Student Loans contained in the Portfolio.
	 
	 	(iii)	 	The estimated Aggregate Purchase Price of such Portfolio on the proposed Sale
Date is [$                    ]. The Aggregate Purchase Price shall equal [(A) * (D)] +
(E), where:

	 	(A)	 	Aggregate Principal Balance of Portfolio of Student Loans,
$                    ;
	 
	 	(B)	 	Average Indebtedness of Borrower, $v;
	 
	 	(C)	 	Weighted Average Percentage of ACH, ___%;
	 
	 	(D)	 	Premium Percentage from Appendix A, ___%; and
	 
	 	(E)	 	Accrued Interest, $                    .

[REMAINDER OF PAGE LEFT INTENTIONALLY BLANK]

 

 

IN WITNESS WHEREOF, we have caused this Purchase and Sale Request to be executed and delivered by
the undersigned on the date first written above.

	 	 	 	 	 	 	 
	 	 	Very truly yours,	 	 
	 
	 	 	 	 	 	 
	 	 	COLLEGIATE FUNDING SERVICES, L.L.C.	 	 
	 	 	as Seller	 	 
	 
	 	 	 	 	 	 
	 

	 	By:	 	 	 	 
	 	 	 	 	 	 	 
	 

	 	 	 	Name:	 	 
	 

	 	 	 	Title:	 	 

2

 

EXHIBIT B

FORM OF BILL OF SALE

     This Bill of Sale is made and entered into as of ___, 20___, by and among Collegiate
Funding Services, L.L.C. (the “Seller”), JPMorgan Chase Bank, N.A. (the “Purchaser”), The Bank of
New York, not individually but solely as eligible lender trustee for the Seller (the “Seller
Trustee”) and JPMorgan Chase Bank, N.A., not individually but solely as eligible lender trustee for
the Purchaser (the “Purchaser Trustee”).

     WHEREAS, the parties hereto entered into a Purchase and Sale Agreement dated as of September
30, 2005 (the “Loan Purchase Agreement”), and the Seller, or the Seller Trustee on its behalf,
wishes to sell a Portfolio of Student Loans (as defined in the Loan Purchase Agreement) to the
Purchaser, or the Purchaser Trustee on its behalf, pursuant to and in accordance with the terms and
conditions of the Loan Purchase Agreement.

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

	 	1.	 	Definitions. All capitalized terms in this Bill of Sale shall have the
same meanings given to them in the Loan Purchase Agreement, unless otherwise
specifically stated herein.
	 
	 	2.	 	Purchase of Student Loans. Subject to the terms and conditions of the
Loan Purchase Agreement and in reliance upon the representations, warranties and
covenants as set forth in the Loan Purchase Agreement, the Seller and the Seller
Trustee on behalf of the Seller, agree to sell to the Purchaser Trustee, as trustee
under the Purchaser Trust Agreement on behalf of the Purchaser, a portfolio of Student
Loans identified in Schedule A attached hereto, having an aggregate outstanding
principal balance of approximately $                     (the “Current Purchase Portfolio”).
	 
	 	3.	 	Aggregate Purchase Price. Subject to the terms and conditions of the
Loan Purchase Agreement, the Purchaser agrees to purchase the Student Loans in the
Current Purchase Portfolio at an Aggregate Purchase Price equal to $                    
	 
	 	4.	 	Sale Date. The Sale Date shall be                     , 20___.
	 
	 	5.	 	Cut-off Date. The Cut-off Date shall be                     , 20___.
	 
	 	6.	 	Representations and Warranties. Each of the Seller and the Purchaser
hereby reconfirms all the representations and warranties set forth in the Loan Purchase
Agreement as of the Sale Date set forth in Articles IV and V thereof.

 

 

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

[Remainder of page intentionally left blank.]

	 	 	 	 	 	 	 
	 	 	COLLEGIATE FUNDING SERVICES, L.L.C.	 	 
	 	 	as Seller	 	 
	 
	 	 	 	 	 	 
	 

	 	By:	 	 	 	 
	 	 	 	 	 	 	 
	 

	 	 	 	Name:	 	 
	 

	 	 	 	Title:	 	 
	 
	 	 	 	 	 	 
	 	 	JPMORGAN CHASE BANK, N.A.	 	 
	 	 	as Purchaser	 	 
	 
	 	 	 	 	 	 
	 

	 	By:	 	 	 	 
	 	 	 	 	 	 	 
	 

	 	 	 	Name:	 	 
	 

	 	 	 	Title:	 	 
	 
	 	 	 	 	 	 
	 	 	THE BANK OF NEW YORK,	 	 
	 	 	not in its individual capacity but solely as	 	 
	 	 	Seller Trustee	 	 
	 
	 	 	 	 	 	 
	 

	 	By:	 	 	 	 
	 	 	 	 	 	 	 
	 

	 	 	 	Name:	 	 
	 

	 	 	 	Title:	 	 
	 
	 	 	 	 	 	 
	 	 	JPMORGAN CHASE BANK, N.A.,	 	 
	 	 	not in its individual capacity but solely as	 	 
	 	 	Purchaser Trustee	 	 
	 
	 	 	 	 	 	 
	 

	 	By:	 	 	 	 
	 	 	 	 	 	 	 
	 

	 	 	 	Name:	 	 
	 

	 	 	 	Title:	 	 

2

 

Schedule A

to Bill of Sale

Loan Transfer Schedule

 

 

EXHIBIT C

FORM OF BLANKET ENDORSEMENT

     [                                        ] (“Holder”), by execution of this instrument, hereby endorses the
attached promissory note to [                                        ] (“Purchaser”). This Blanket Endorsement is
without recourse, except as provided in that certain Purchase and Sale Agreement (the “Agreement”)
dated as of [                    ], among                     , as Purchaser,                     , as Seller,                     ,
as Seller Trustee and                     , as Purchaser Trustee. The attached promissory note is one of
the promissory notes (the “Notes”) described in the Bill of Sale of even date herewith executed by
the Holder in favor of Purchaser pursuant to the Agreement, and this endorsement may be effected by
attaching this instrument or a copy hereof to this or any of the Notes. Notwithstanding the
foregoing, the Holder agrees to individually endorse (manually or by facsimile signature) each Note
as Purchaser may from time to time require, upon the same terms and conditions contained in this
Blanket Endorsement.

	 	 	 	 	 
	Dated as of                                         .
	 	 	 	 
	 
	 	 	 	 
	 	 	[                                        ]
	 
	 	 	 	 
	 

	 	By:	 	 
	 	 	 	 	 
	 

	 	 	 	Name:
	 

	 	 	 	Title:

 

 

EXHIBIT D

Real World Consolidation Borrower Benefit Programs

Product Specifications

Product Name

	-	 	Real World LoanSM Federal Consolidation

Product Terms

	-	 	Interest Rate Reduction Products
	 
	-	 	1% interest rate reduction effective after first 36 monthly consecutive on-time
payments.
	 
	-	 	Payment is considered on-time if it is received within five (5) days of the due date.
	 
	-	 	0.25% interest rate reduction for making payments via ACH / direct debit
	 
	-	 	Once benefit is earned, customer must continue to make payments on time to continue to
qualify.

 

 

EXHIBIT E

FORM OF LOAN SERVICING AGREEMENT

 

 

EXHIBIT F

FORM OF OPINION OF IN-HOUSE COUNSEL

 

 

EXHIBIT G

FORM OF OPINION OF

STROOCK & STROOCK & LAVAN LLPexv10w58

 

Exhibit 10.58

THIS SECURITY HAS NOT BEEN AND WILL NOT BE REGISTERED UNDER THE SECURITIES ACT OF
1933, AS AMENDED (THE “SECURITIES ACT”) OR APPLICABLE STATE SECURITIES LAWS. THE HOLDER
HEREOF, BY ACCEPTING THIS SECURITY, AGREES FOR THE BENEFIT OF THE COMPANY THAT THIS SECURITY
MAY NOT BE OFFERED, SOLD, PLEDGED, OR OTHERWISE TRANSFERRED BY SUCH HOLDER OTHER THAN (1) TO
THE COMPANY, (2) PURSUANT TO AN EFFECTIVE REGISTRATION STATEMENT UNDER THE SECURITIES ACT
AND IN ACCORDANCE WITH ANY APPLICABLE LAWS OF ANY STATE OF THE UNITED STATES, (3) PURSUANT
TO AN EXEMPTION FROM REGISTRATION UNDER THE SECURITIES ACT PROVIDED BY RULE 144, IF
APPLICABLE, UNDER THE SECURITIES ACT OR (4) IN A TRANSACTION THAT DOES NOT REQUIRE
REGISTRATION UNDER THE SECURITIES ACT BUT IS IN ACCORDANCE WITH APPLICABLE STATE SECURITIES
LAWS AND IN RELATION TO WHICH THE HOLDER HAS FURNISHED TO THE COMPANY AN OPINION TO SUCH
EFFECT FROM COUNSEL OF RECOGNISED STANDING IN FORM AND SUBSTANCE SATISFACTORY TO THE COMPANY
PRIOR TO SUCH OFFER, SALE, PLEDGE OR TRANSFER

Warrant Number: W03-2005-1017

Warrant exercisable for the purchase of 75,004 shares of Common Stock

GLOBAL SECURE CORP.

WARRANT CERTIFICATE

     This Warrant certifies that GSW Holdings, LLC (“Holder”), by transfer from Sky Capital LLC, is
entitled to purchase, at any time on or before the Expiration Date (hereinafter defined),
SEVENTY-FIVE THOUSAND FOUR (75,004) fully paid and non-assessable shares of Common Stock, $0.0001
par value (“Common Stock”) of Global Secure Corp., a Delaware corporation (the “Company”), at a
purchase price of $1.50 per share of Common Stock in lawful money of the United States of America
in cash or by certified or cashier’s check or a combination of cash and certified or cashier’s
check, subject to adjustment as hereinafter provided.

               1. Warrants; Purchase Price

     The purchase price payable upon exercise of this Warrant shall initially be $1.50 per share of
Common Stock, subject to adjustment as hereinafter provided (the “Purchase Price”). The Purchase
Price and number of shares of Common Stock issuable upon exercise of this Warrant are subject to
adjustment as provided in Article 6.

 

 

               2. Exercise; Expiration Date

               2.1 This Warrant is exercisable, at the option of the Holder, at any time after issuance and
on or before the Expiration Date, upon surrender of this Warrant to the Company together with a
duly completed Notice of Exercise, in the form attached hereto as Exhibit A, and payment of
an amount equal to the Purchase Price times the number of shares of Common Stock to be purchased
upon exercise. In the case of exercise of less than all the shares of Common Stock represented by
this Warrant, the Company shall cancel this Warrant upon the surrender thereof and shall execute
and deliver a new Warrant for the balance of such shares of Common Stock.

               2.2 In lieu of payment of the Purchase Price in cash, the Holder may elect to receive shares
of Common Stock equal to the value (as determined below) of this Warrant by surrender of this
Warrant together with the Notice of Exercise including notice of such election in which event the
Company shall issue to the Holder a number of shares of Common Stock computed using the following
formula:

	 	 	 
	 

	 	X = Y(A-B)

             A
	 
	 	 
	Where:

	 	X = the number of shares of Common Stock to be issued to the Holder
	 

	 	Y = the number of shares of Common Stock purchasable under this

             Warrant
	 

	 	A = the Fair Market Value (as defined below) of a share of Common Stock
	 

	 	B = Purchase Price

     “Fair Market Value” shall mean, as of any date, the fair market value of one share of Common
Stock determined as follows:

     (a) If the Common Stock is listed on any established stock exchange or a national
market system, including without limitation the National Market of the National Association
of Securities Dealers, Inc. Automated Quotation System (“Nasdaq”), its Fair Market Value
shall be the closing sales price for such stock (or the closing bid, if no sales were
reported) as quoted on such system or exchange, or, if there is more than one such system or
exchange, the system or exchange with the greatest volume of trading in Common Stock for the
last market trading day prior to the time of determination, as reported in The Wall Street
Journal or such other source as the Company deems reliable, including the closing price of
the Common Stock on any foreign stock exchange on which it may be admitted for trading.

     (b) If the Common Stock is quoted on the Nasdaq (but not on the National Market
thereof) or regularly quoted by a recognized securities dealer but selling prices are not
reported, its Fair Market Value shall be the mean between the high bid and low asked prices
for the Common Stock for the last market trading day prior to the time of

2

 

determination, as reported in The Wall Street Journal or such other source as the
Committee deems reliable; or

     (c) In the absence of an established market for the Common Stock, the Fair Market Value
thereof shall be determined in good faith by the Company’s Board of Directors.

               2.3 The term “Expiration Date” shall mean 5:00 p.m. New York time on September 30, 2009, or if
such date shall in the State of New York be a holiday or a day on which banks are authorized to
close, then 5:00 p.m. New York time the next following date which in the State of New York is not a
holiday or a day on which banks are authorized to close.

               3. Registration and Transfer on Company Books

               3.1 The Company shall maintain books for the registration and transfer of this Warrant and the
registration and transfer of the shares of Common Stock issued upon exercise of this Warrant. The
Company may, by written notice to the Holder, appoint an agent for the purpose of maintaining the
register referred to in this Section 3.1, issuing the Common Stock or other securities then
issuable upon the exercise of this Warrant, exchanging this Warrant, replacing this Warrant, or any
or all of the foregoing. Thereafter, any such registration, issuance, exchange or replacement, as
the case may be, shall be made at the office of such agent.

               3.2 Prior to due presentment for registration of transfer of this Warrant, or the shares of
Common Stock issued upon exercise of this Warrant, the Company may deem and treat the registered
Holder as the absolute owner thereof.

               3.3 Neither this Warrant, nor the shares of Common Stock represented hereby, may be sold,
assigned, pledged or otherwise transferred by the Holder, other than to officers or directors of
the Holder, without the consent of the Company. Any transfer shall be made only if permitted by,
and made only in accordance with, all applicable federal and state securities laws. The Company
shall register upon its books any permitted transfer of the Warrant, upon surrender of same to the
Company with a written instrument of transfer duly executed by the registered Holder or by a duly
authorized attorney, and evidence of payment of all applicable transfer taxes, if any. Upon any
such registration of transfer, new Warrant (s) shall be issued to the transferee(s) and the
surrendered Warrant shall be canceled by the Company. A Warrant may also be exchanged, at the
option of the Holder, for new Warrant(s) representing in the aggregate the number of shares of
Common Stock evidenced by the Warrant surrendered.

               4. Reservation of Shares

     The Company covenants that it will at all times reserve and keep available out of its
authorized Common Stock, solely for the purpose of issue upon exercise of this Warrant, such number
of shares of Common Stock as shall then be issuable upon the exercise of the Warrant. The Company
covenants that all shares of Common Stock which shall be issuable upon exercise of the Warrant
shall be duly and validly issued and fully paid and non-assessable and free from all taxes, liens
and charges with respect to the issue thereof, and that upon issuance such shares

3

 

shall be listed on each national securities exchange, if any, on which the other shares of
outstanding Common Stock of the Company are then listed.

               5. Loss or Mutilation

Upon receipt by the Company of reasonable evidence of the ownership of and the loss, theft,
destruction or mutilation of this Warrant and, in the case of loss, theft or destruction, of
indemnity reasonably satisfactory to the Company, or, in the case of mutilation, upon surrender and
cancellation of the mutilated Warrant, the Company shall execute and deliver in lieu thereof a new
Warrant representing an equal number of shares of Common Stock underlying such Warrant.

               6. Adjustment of Purchase Price and Number of Shares Deliverable

               The number of shares of Common Stock purchasable upon the exercise of this Warrant (such
shares being referred to in this Section 6 as the “Warrant Shares”) and the Purchase Price with
respect to the Warrant Shares shall be subject to adjustment as follows:

               6.1

     (a) If the Company at any time divides the outstanding shares of its Common Stock into
a greater number of shares (whether pursuant to a stock split, stock dividend or otherwise),
and conversely, if the outstanding shares of its Common Stock are combined into a smaller
number of shares, the Purchase Price in effect immediately prior to such division or
combination shall be proportionately adjusted to reflect the reduction or increase in the
value of each such Common Share.

     (b) If any capital reorganization or reclassification of the capital stock of the
Company or consolidation or merger of the Company with another corporation, or the sale of
all or substantially all of its assets to another corporation shall be effected in such a
way that holders of the Company’s Common Stock shall be entitled to receive stock,
securities or assets with respect to or in exchange for such Common Stock, then, as a
condition of such reorganization, reclassification, consolidation, merger or sale, the
Holder shall have the right to purchase and receive upon the basis and upon the terms and
conditions specified herein and in lieu of the shares of the Common Stock immediately
theretofore purchasable and receivable upon the exercise of the rights represented hereby,
such shares of stock, other securities or assets as would have been issued or delivered to
the Holder if Holder had exercised this Warrant and had received such shares of Common Stock
immediately prior to such reorganization, reclassification, consolidation, merger or sale.
The Company shall not effect any such consolidation, merger or sale unless prior to the
consummation thereof the successor corporation (if other than the Company) resulting from
such consolidation or merger or the corporation purchasing such assets shall assume by
written instrument executed and mailed to the Holder at the last address of the Holder
appearing on the books of the Company the obligation to deliver to the Holder such shares of
stock, securities or assets as, in accordance with the foregoing provisions, the Holder may
be entitled to purchase.

4

 

     (c) If the Company takes any other action, or if any other event occurs, which does not
come within the scope of the provisions of Section 6.1(a) or 6.1(b), but which should result
in an adjustment in the Purchase Price and/or the number of shares subject to this Warrant
in order to fairly protect the purchase rights of the Holder, an appropriate adjustment in
such purchase rights shall be made by the Company.

     (d) Upon each adjustment of the Purchase Price, the Holder shall thereafter be entitled
to purchase, at the Purchase Price resulting from such adjustment, the number of shares
obtained by multiplying the Purchase Price in effect immediately prior to such adjustment by
the number of shares purchasable pursuant hereto immediately prior to such adjustment and
dividing the product thereof by the Purchase Price resulting from such adjustment.

               6.2 No adjustment in the number of Warrant Shares purchasable under this Warrant, or in the
Purchase Price with respect to the Warrant Shares, shall be required unless such adjustment would
require an increase or decrease of at least 1% in the number of Warrant Shares issuable upon the
exercise of this Warrant, or in the Purchase Price thereof; provided, however, that any adjustments
which by reason of this Section 6.3 are not required to be made shall be carried forward and taken
into account in any subsequent adjustment. All final results of adjustments to the number of
Warrant Shares and the Purchase Price thereof shall be rounded to the nearest one thousandth of a
share or the nearest cent, as the case may be. Anything in this Section 6 to the contrary
notwithstanding, the Company shall be entitled, but shall not be required, to make such changes in
the number of Warrant Shares purchasable upon the exercise of this Warrant, or in the Purchase
Price thereof, in addition to those required by such Section, as it in its discretion shall
determine to be advisable in order that any dividend or distribution in shares of Common Stock,
subdivision, reclassification or combination of shares of Common Stock, issuance of rights,
warrants or options to purchase Common Stock, or distribution of shares of stock other than Common
Stock, evidences of indebtedness or assets (other than distributions of cash out of retained
earnings) or convertible or exchangeable securities hereafter made by the Company to the holders of
its Common Stock shall not result in any tax to the holders of its Common Stock or securities
convertible into Common Stock.

               6.3 Whenever the number of Warrant Shares purchasable upon the exercise of this Warrant or the
Purchase Price of such Warrant Shares is adjusted, as herein provided, the Company shall mail to
the Holder, at the address of the Holder shown on the books of the Company, a notice of such
adjustment or adjustments, prepared and signed by the Chief Financial Officer or Secretary of the
Company, which sets forth the number of Warrant Shares purchasable upon the exercise of the Warrant
and the Purchase Price of such Warrant Shares after such adjustment, a brief statement of the facts
requiring such adjustment and the computation by which such adjustment was made.

               6.4 The form of Warrant need not be changed because of any change in the Purchase Price or the
number of Warrant Shares issuable upon the exercise of the Warrant. The Company may, however, at
any time, in its sole discretion, make any change in the form of Warrant that it may deem
appropriate and that does not affect the substance thereof, and any

5

 

Warrant thereafter issued or countersigned, whether in exchange or substitution for an
outstanding Warrant or otherwise, may be in the form as so changed.

               7. Voluntary Adjustment by the Company.

     The Company may, at its option, at any time during the term of this Warrant, reduce the then
current Purchase Price to any amount deemed appropriate by the Board of Directors of the Company
and/or extend the date of the expiration of this Warrant.

               8. Fractional Shares and Warrants.

     Anything contained herein to the contrary notwithstanding, the Company shall not be required
to issue any fraction of a share of Common Stock in connection with the exercise of this Warrant.
This Warrant may not be exercised in such number as would result (except for the provisions of this
paragraph) in the issuance of a fraction of a share of Common Stock unless the Holder is exercising
this Warrant in its entirety. In such event, the Company shall, upon the exercise of this Warrant,
issue to the Holder the largest aggregate whole number of shares of Common Stock called for thereby
upon receipt of the Purchase Price for all of such shares of Common Stock and pay a sum in cash
equal to the remaining fraction of a share of Common Stock, multiplied by its Market Price Per
Share (as determined pursuant to Section 9.2 below) as of the last business day preceding the date
on which the Warrant is presented for exercise.

               9. Governing Law

     This Warrant shall be governed by and construed in accordance with the laws of the State of
New York without applicability of the doctrine of conflict of laws.

               10. Securities Law Compliance

     Notwithstanding anything to the contrary contained herein, Holder acknowledges and agrees that
neither this Warrant nor the Warrant Shares have been registered under the Securities Act of 1933,
as amended (“Act”) or the laws of any state. The Warrant Shares shall be issued upon exercise of
this Warrant only if an exemption from registration is available or the issuance of the Warrant
Shares by the Company has been registered under the Act. In connection with the exercise of this
Warrant, the Company, therefore, may require the Holder to provide the Company with evidence that
the Holder is an accredited investor or otherwise meets the requirements to comply with an
available exemption from registration. The certificate evidencing the Warrant Shares shall bear an
appropriate restrictive legend and stop transfer instructions may be placed against such Warrant
Shares.

6

 

     IN WITNESS WHEREOF, the Company has caused this Warrant to be duly executed by its officers
thereunto duly authorized and its corporate seal to be affixed hereon, as of this 8th day of
August, 2005.

	 	 	 	 	 
	 	GLOBAL SECURE CORP.

 	 
	 	By:  	/s/ Craig R. Bandes
 	 
	 	Name:  	Craig R. Bandes 	 
	 	Title:  	Chief Executive Officer and President 	 
	 

7

 

EXHIBIT A

NOTICE OF EXERCISE

     The undersigned hereby irrevocably elects to exercise the Warrant accompanying this Notice of
Exercise, pursuant to Section 2 of the Warrant, to purchase                      shares of Common Stock
underlying the accompanying Warrant, and herewith makes payment of the Purchase Price of such
shares in full.

     If payment of the Purchase Price is made pursuant to Section 2.2 of the Warrant, the number of
shares of Common Stock to be issued shall be determined according to Section 2.2 of the Warrant.

	 	 	 
	 
	 	 
	 
	 	 
	 
	 	 
	 

	 	 
	 

	 	Name of Holder
	 
	 	 
	 
	 	 
	 
	 	 
	 
	 	 
	 
	 	 
	 

	 	 
	 

	 	Signature

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