Interest Rate Cap Transaction Confirmation between JPMorgan Chase Bank and Nelnet Incorporated
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Summary
JPMorgan Chase Bank and Nelnet Incorporated entered into an interest rate cap agreement effective August 1, 2003, for a notional amount of $500 million, terminating August 1, 2005. Nelnet pays a $6 million premium to JPMorgan for protection against USD 1-month LIBOR rates rising above 1.5%. JPMorgan will make payments to Nelnet if rates exceed this cap on specified monthly dates. The agreement is governed by the 2000 ISDA Definitions and supplements their existing ISDA Master Agreement. Both parties confirm their understanding and acceptance of the terms and associated risks.
EX-10.74 101 y88696a1exv10w74.txt INTEREST RATE SWAP CONFIRMATION Exhibit 10.74 [JPMORGAN LOGO] CAP TRANSACTION The purpose of this letter agreement is to confirm the terms and conditions of the Transaction entered into between: JPMORGAN CHASE BANK ('JPMorgan') and NELNET INCORPORATED (the 'Counterparty') on the Trade Date and Identified by the JPMorgan Deal Number specified below (the Transaction'). This letter agreement constitutes a 'Confirmation' as referred to in the Master Agreement specified below, and supersedes any previous confirmation or other writing with respect to the transaction described below. The definitions and provisions contained in the 2000 ISDA Definitions (the 'Definitions'), as published by the International Swaps and Derivatives Association, Inc. are incorporated into this Confirmation. In the event of any inconsistency between those definitions and provisions and this Confirmation, this Confirmation will govern. This Confirmation supplements, forms part of, and is subject to, the ISDA Master Agreement dated as of 20 May 2002, as amended and supplemented from time to time (the 'Agreement'), between JPMORGAN CHASE BANK ('JPMorgan') and NELNET INCORPORATED (the 'Counterparty'). All provisions contained in the Agreement govern this Confirmation except as expressly modified below. Our Ref: 2000005032231, Sent: 31 July 2003 21:01 Page 1 of 5 [JPMORGAN LOGO] The terms of the particular Cap Transaction to which this Confirmation relates are as follows:
Our Ref: 2000005032231 Sent: 31 July 2003 21:01 Page 2 of 5 [JPMORGAN LOGO]
Each part represents that (i) it is entering into the Transaction evidenced hereby as principal (and not as agent or in any other capacity); (ii) the other party is not acting as a fiduciary for it; (iii) it is not relying upon any representations except those expressly set forth in the Agreement or this confirmation; (iv) it has consulted with its own legal, regulatory, tax, business, investment, financial, and accounting advisors to the extent it has deemed necessary, and it has made its own investment, hedging, and trading decisions based upon its own judgement and upon any advice from such advisors as it has deemed necessary and not upon any view expressed by the other party; and (v) it is entering into this Transaction with a full understanding of the terms, conditions and risks thereof and it is capable of and willing to assume those risks. Our Ref: 2000005032231 Sent: 31 July 2003 21:01 Page 3 of 5 [JPMORGAN LOGO] Please confirm that the foregoing correctly sets forth the terms of our agreement by executing a copy of this Confirmation and returning it to us or by sending to us a letter, telex, or facsimile substantially similar to this letter, which letter, telex or facsimile sets forth the material terms of the Transaction to which this Confirmation relates and indicates agreement to those terms. When referring to this Confirmation, please indicate: JPMorgan Deal Number(s): 2000005032231 On Behalf of JP Morgan Securities Inc. As Agent for JPMorgan Chase Bank /s/ Deborah Hooper - ---------------------------------------------- Name: Deborah Hooper Title: Vice President Accepted and confirmed as of the date first written: NELNET INCORPORATED /s/ Terry Heimes - ----------------------------------------------- Terry Heimes Name: _________________________________________ Title: ________________________________________ Your reference number: ________________________ Our Ref: 2000005032231 Sent: 31 July 2003 21:01 Page 4 of 5 [JPMORGAN LOGO] Client Service Group All queries regarding confirmations should be sent to: JPMorgan Chase Bank and J P Morgan Ltd. Contacts JPMorgan Contact Telephone Number CLIENT SERVICE (001) 7182427553 GROUP Group E-mail address: Facsimile: (001) 8888033606 Telex: Cable: Please quote the JPMorgan deal number(s): 2000005032231. Our Ref: 200000503223] Sent: 31 July 2003 21:01 Page 5 of 5
