Document:

Exhibit 10.46

 

CONFIDENTIAL TREATMENT REQUESTED FOR PORTIONS OF THIS DOCUMENT. PORTIONS FOR WHICH CONFIDENTIAL TREATMENT IS REQUESTED ARE DENOTED BY [***]. MATERIAL OMITTED HAS BEEN SEPARATELY FILED WITH THE SECURITIES AND EXCHANGE COMMISSION.

 

BLACKBOARD - LAUREATE SYSTEM WIDE MASTER AGREEMENT

 

This Master Agreement (“Agreement”), dated April 10, 2015  (the “Effective Date”), is made between Blackboard Inc., a Delaware corporation, with an address at 650 Massachusetts Ave., NW, 6th Floor, Washington, DC 20001-3796 (“Blackboard”), and Laureate Education Inc., with an office at 650 S. Exeter St., Baltimore, MD 21202 ( “Laureate”).  Each of Blackboard and Laureate are referred to as a “Party” and collectively as the “Parties.”

 

WHEREAS, Blackboard and Laureate desire to enter into an agreement for Blackboard offerings that would operate as a global standard agreement from which Laureate and its Affilates can purchase certain Blackboard offerings at a pre-negotiated rate.

 

NOW, THEREFORE, the parties intending to be legally bound hereby agree as follows:

 

1.              Defined Terms.

 

a.              “Affiliate” is a member of the Laureate International University network of institutions or a subsidiary of Laureate Education, Inc. Current Affiliates are listed on Schedule 1.  Laureate may add new Affiliates from time to time upon written notice to Blackboard.

 

b.              “Customer” means Laureate and each Affiliate, as applicable.

 

c.               “GPS/NGPS Institutions” are those Affiliates that are set forth on Schedule 3.

 

2.              Marketing.  Laureate is selecting Blackboard as its Global Standard LMS with the objective of having all Affiliates using the Blackboard LMS.  During the Term of this Agreement, the Parties shall work together in good faith to jointly market Blackboard offerings to Affiliates not yet using the Blackboard offerings.  During the Term, Laureate will increase its central training and support for Blackboard offerings to meet the anticipated increase in demand.

 

3.              Global Agreement.  As of the Effective Date, this Agreement shall replace the current global pricing agreement in place between Laureate and Blackboard dated September 7, 2007, as amended.  All other current contracts with Affiliates shall continue pursuant to their current terms, except as otherwise specifically set forth below for NGPS Institutions.  Once the current Affiliate contracts terminate in accordance with their respective Terms, that Affiliate may then purchase pursuant to this Agreement in accordance with the ordering procedures set out below.  This Agreement will govern the provision of Blackboard offerings listed in Schedules 2 and 4 to Laureate and its Affiliates who subsequently order pursuant an Order Form(s) (as defined in the Blackboard Master Terms) entered into by the respective Affiliate and Blackboard.  Affiliates with no existing contract with Blackboard may order these Blackboard offerings by entering into their own Order Form(s) with Blackboard, and in each case such Order Form(s) will be subject to the terms and conditions of this Agreement, and subject to the pricing set forth in Schedule 2.  Optional Managed Hosting Pricing is available to individual Affiliates at pricing as set forth in Schedule 4.  Analytics implementation will be scoped per individual Affiliate on a case-by-case basis.  For purposes of calculating Authorized Users under the applicable Schedules, an “Authorized User” is a unique person who is given access to the system.  Any of Blackboard’s other offerings not covered under Schedules 2 and 4 shall be outside of the scope of this Agreement and any purchase thereof shall be subject to individual negotiation with each Affiliate.  Each of Laureate and its respective Affiliates that enters into such an Order Form, shall thereby be bound by the terms and conditions of this Agreement, the applicable Order Form(s), and the applicable Schedules.  In all cases, the respective Affiliates will be solely liable for the payments under the respective Order Form(s).

 

GPS/NGPS Institutions:  Non-GPS institutions (NGPS Institutions) are Affiliates that are not part of GPS as determined previously by Laureate but have become part of the existing GPS contract enjoying GPS special pricing terms. Non-GPS Institutions with Authorized User numbers below [***] may replace their current 

 

[***] Indicates material that has been omitted and for which confidential treatment has been requested. All such omitted material has been filed with the Securities and Exchange Commission pursuant to Rule 406 under the Securities Act of 1933, as amended.

 

 

contract by entering into an Order Form(s) with Blackboard, and in each case such Order Form will be subject to this Agreement, provided, however, that no such Affiliate shall enter a new Order Form for less than the annual contract value under their current contract with Blackboard.  Non GPS Institutions with Authorized User numbers above [***] that are committing to growth of at least [***]% in Authorized User numbers over the next calendar year may replace their current contract by entering into an Order Form(s) with Blackboard, and in each case such Order Form will be subject to this Agreement, provided, however, that no such Affiliate shall enter a new Order Form for less than the annual contract value under their current contract with Blackboard.  Non GPS Institutions with Authorized User numbers above [***] and whom agree to purchase at least the “Laureate Global Standard plus Collaborate” package as set forth in Schedule 2 for all users, may replace their current contract by entering into an Order Form(s) with Blackboard, and in each case such Order Form will be subject to this Agreement, provided, however, that no such Affiliate shall enter a new Order Form for less than the annual contract value under their current contract with Blackboard. For all other GPS/NGPS Institutions not fitting into one of these three categories described in this subsection, their current contracts shall continue through the remainder of their respective Terms.  For purposes of clarity, this offering set forth in this subsection is only available to those Non-GPS Institutions, as set forth in Schedule 3.

 

4.              Pricing and Term.  The pricing set forth in the attached Schedules is available to Laureate for itself and the Affiliates on the following terms and conditions:

 

a)             Pricing offered as of the effective date of this Agreement will be as set forth in Schedule 2.

 

b)             All Affiliates which order Blackboard offerings under this agreement must commit to a term that would be coterminous on December 19, 2019.  A standard annual license renewal increase of [***]% each year will apply, and in each case, the Affiliates will confirm the number of Authorized Users on a quarterly basis.

 

c)              Throughout the Term of the Agreement, the Parties will conduct a quarterly review on the then-current Authorized User counts.  Any increase in the Authorized User counts over the counts from the preceding quarterly review will be applied in the next invoice issued in accordance with the terms of the original order.

 

The term (the “Term”) of this Agreement will expire on December 19, 2019.  Two years after the Effective Date, however, the pricing available under this Agreement shall no longer be available to Laureate and Affiliates, provided, however, that until December 2019, newly acquired Affilates acquired after the Effective Date may purchase pursuant to this pricing subject to a [***]% increase for each year starting the last day following the Term.  In any event, if a Affiliate enters into an Order Form pursuant to this Agreement during the Term, the pricing set forth in that Order Form shall be effective for the period set forth in that Order Form.

 

For the purposes of determining the total number of Laureate Authorized users, the number of Authorized users in Affiliates located in Brazil shall be added.

 

5.              Ordering Procedures.  The following describes the procedures to be used for the requesting of Blackboard offerings and issuing of Blackboard Software Schedules against this Agreement:

 

a.              Affiliates under the terms of this Agreement may request the purchase of a Blackboard offerings.  The request for purchase shall be made through the local Blackboard sales representative in the region against this Agreement and shall include the following:

 

i.                A Blackboard Order Form;

 

[***] Indicates material that has been omitted and for which confidential treatment has been requested. All such omitted material has been filed with the Securities and Exchange Commission pursuant to Rule 406 under the Securities Act of 1933, as amended.

 

CONFIDENTIAL

 

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ii.             Description of the offering desired;

iii.          Billing contact information;

iv.         Technical Contact Information; and

v.            Any schedule or additional information relevant and deemed necessary for the purchase of the Blackboard offering.

 

6.              Incorporation of this Master Agreement.  This Master Agreement shall replace in its entirety the standard Blackboard Master Terms for the following Affiliate Order Form(s) that have already been signed between the respective Affiliate and Blackboard:

 

INTI Universal Holdings Sdn Bhd, December 19, 2014, reference number: 10-200218

Universidad Peruana de Ciencias Aplicadas (UPC), December 19, 2014, reference number: 10-200112

Universidad Nacional Andres Bello, February 9, 2015, reference number: 10-200944

 

7.              Schedules and Appendices.  This Master Agreement is together with the Blackboard Master Terms, Order Form(s), Schedule(s), Appendice(s) and other Exhibit(s) constitutes the entire, full and complete Agreement between the Parties concerning the subject matter of the Agreement and supersedes all prior or contemporaneous oral or written communications, proposals, conditions, representations and warranties, and this Agreement prevails over any conflicting or additional terms of any quote, order, acknowledgment, or other communication between the Parties relating to its subject matter.  Any component of this Agreement, including any Order Form thereto, may be executed in counterparts, each of which will be deemed an original, and all of which together constitute one and the same instrument.  Facsimile signatures will be considered original signatures.  For the avoidance of doubt, the following Schedules and Exhibits are a material part of this Agreement, and are attached hereto and incorporated by reference herein:

 

a.              Exhibit A — Blackboard Master Terms

b.              Exhibit B — Sample Blackboard Standard Order Form

c.               Schedule 1 — Laureate Affiliated Institutions

d.              Schedule 2 — Laureate Global Standard Pricing Model

e.               Schedule 3 — GPS/NGPS Institutions

f.                Schedule 4 — Private Cloud Implementation Pricing

 

[SIGNATURE PAGE FOLLOWS]

 

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[MASTER AGREEMENT SIGNATURE PAGE]

 

IN WITNESS WHEREOF, the parties have caused this Agreement to be executed by their duly authorized representatives, on the date and year first above-written.

 

	
 
    	
Blackboard   Inc.
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
/s/ Bill Jones
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
Printed Name:     Bill Jones, Assoc. Gen. Counsel
    
	
 
    	
 
    	
 
    
	
 
    	
Date: April 10,   2015
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
Laureate Education Inc.
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
/s/ Karl D. Salnoske
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
Printed Name:     Karl D. Salnoske
    
	
 
    	
Chief   Information Officer
    
	
 
    	
 
    
	
 
    	
Date: April 8,   2015
    

 

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Exhibit A

Blackboard Master Terms

 

1.                                      SCOPE OF AGREEMENT.

 

1.1                               Order Forms.  This Blackboard master agreement (“Master Agreement”) between Customer and Blackboard describes the general terms by which Customer may license or purchase, as applicable, an Offering (as defined below) from Blackboard.  This Master Agreement, together with the Order Form(s) and Schedule(s) referencing it, form the entire agreement between the Parties in respect of the specified Offering.  Customer acknowledges that it only has right to use and/or receive the Offering to the extent provided pursuant to one or more applicable Order Forms.

 

1.2                               Order of Precedence.  In the event a conflict arises between this Master Agreement and the provisions of any Order Form or Schedule, this Master Agreement will govern unless the relevant Order Form or Schedule expressly provides otherwise.  No term or provision set forth or cross-referenced in any purchase order or payment documentation will be construed to amend, add to, or supersede any provision of this Agreement.

 

2.                                      DEFINITIONS.

 

2.1                               “Agreement” means this Master Agreement, the Order Form(s), Schedule(s) and other exhibits to such Order Form(s) or Schedule(s), as amended from time to time.

 

2.2                               “Authorized End User” means an individual authorized by the Customer to use or otherwise access an Offering from time to time in the manner set forth in this Agreement.

 

2.3                               “Available Date” means, with respect to any particular Offering, the date upon which the Offering is made available to Customer pursuant to the terms of the relevant Order Form, regardless of whether Customer utilizes the Offering.

 

2.4                               “Blackboard” means the definition set forth in the relevant Order Form.

 

2.5                               “Blackboard Property” means all materials, including, but not limited to any computer software (in object code, source code form or as a hosted solution, and including, without limitation, all interfaces), script, programming code, data, database schema, web use statistics, information or HTML script, design elements, formulas, documentation, templates, formatting, CGIs, Javascripts, PL/SQL coding, other applications, content, software or other technology made, conceived, developed or provided by Blackboard or its suppliers and any trade secrets, know-how, methodologies and processes related to Blackboard’s products or services, including, without limitation, all copyrights, trademarks, patents, trade secrets, and any other proprietary rights therein and any Derivative Works thereof.

 

2.6                               “Confidential Information” means any non-public information disclosed by either Party to the other that has been identified as confidential or that by the nature of the information or the circumstances surrounding disclosure ought reasonably to be treated as confidential.  Without limiting the generality of the foregoing, Confidential Information will be deemed to include, without limitation, information about a Party’s business, operations, vendors or customers.  Blackboard’s Confidential Information will be deemed to include all Blackboard Property; Customer’s Confidential Information will be deemed to include all Customer Property.

 

2.7                               “Customer” means the customer identified on the relevant Order Form.

 

2.8                               “Customer Content” means any data, information, graphics or other media files or other content provided by Customer or any end user through use of an Offering.

 

2.9                               “Customer Property” means all graphic user interface, text, images, music, designs, products, computer programs, drawings, content, end user information, documentation, notes, development aids, technical documentation, information and other materials provided by Customer to Blackboard for use in connection with the Offering, including, without limitation, all copyrights, trademarks, patents, trade secrets, and any other proprietary rights therein.  Customer Property includes any third party software provided by, or made available at the request of, Customer for use in connection with any Offering.

 

2.10                        “Derivative Works” shall mean a work based upon one or more preexisting works, such as a translation, musical arrangement, dramatization, fictionalization, motion picture version, sound recording, art reproduction, abridgement, condensation, or any other form in which the preexisting work may be recast, transformed, or adapted.  A work consisting of editorial revisions, annotations, elaborations, or other modifications which, as a whole, represent an original work of authorship, is a “derivative work”.  The term Derivative Works shall not include and Blackboard shall not obtain any rights with respect to any Confidential Information of the Customer or any Customer-developed content or other Customer materials that are used in conjunction with the Blackboard Materials but that are not based upon or derived from the Blackboard Materials or any portion thereof.

 

2.11                        “Documentation” means, with respect to any particular Offering, any applicable standard end user specifications and/or operating instructions provided by Blackboard for such Offering, which may be amended from time to time. Documentation does not include any sales or marketing materials.

 

2.12                        “Effective Date” means the effective date set forth in the relevant Order Form.

 

2.13                        “Equipment” means any hardware and/or firmware provided by Blackboard to Customer.

 

2.14                        “Offering” means Software, Services, Professional Services or Equipment, as applicable.

 

2.15                        “Order Form” a document executed by both parties which lists items to be purchased and/or licensed by Customer as well as other information related to such items, each of which is incorporated into this Agreement.

 

2.16                        “Party” means either Blackboard or Customer.

 

2.17                        “Professional Services” means any professional services provided by Blackboard to Customer.

 

2.18                        “SaaS Service” means software provided by Blackboard as a Blackboard-hosted solution.

 

2.19                        “Services” means any services provided by Blackboard to Customer, including, without limitation, any SaaS Service.

 

2.20                        “Software” means the object code version of software provided by Blackboard to Customer.

 

2.21                        “Test Copy” means a copy of the Software which may be used only for purposes of testing the Software in Customer’s environment, and not for production purposes.

 

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3.                                      PROPRIETARY RIGHTS

 

3.1                               Ownership of Customer Property.  As between Customer and Blackboard, Customer Property is and shall remain the sole and exclusive property of Customer.

 

3.2                               Ownership of Blackboard Property. As between Customer and Blackboard, Blackboard Property is and shall remain the sole and exclusive property of Blackboard or its licensors or suppliers.

 

3.3                               Vesting of Rights. To the extent, if any, that ownership of any of the Blackboard Property does not reside or automatically vest in Blackboard, Customer hereby transfers and assigns to Blackboard all rights, title interest and goodwill which Customer may have in and to Blackboard Property.  Without prejudice to the generality of the foregoing, in the event that ownership of any Blackboard Property vests in Customer for any reason, Customer agrees to execute all such instruments and do all such things as Blackboard may require of it to transfer or assign such ownership to Blackboard.

 

3.4                               Non-exclusivity. Customer acknowledges that it has no rights of exclusivity as to any of the Offerings to be provided by Blackboard, and that Blackboard shall have the right to provide to third parties with software, services and equipment which are the same or similar to those provided to Customer, and to use or otherwise exploit any Blackboard Property in providing such services, unless negotiated between the parties and specified in a work order formed under this Agreement.

 

3.5                               Blackboard Use of Customer Property. During the term of this Agreement, Customer grants to Blackboard, solely to perform its obligations hereunder, a non-exclusive, royalty-free license (a) to modify, arrange, combine, copy, store, transmit, distribute, and otherwise use the Customer Property and each element thereof generally and in combination with other elements of the Customer Property and the Blackboard Property, and (b) to make archive or backup copies and other copies of the Customer Property.  Customer hereby grants to Blackboard an unrestricted, irrevocable (subject to a material breach), non-exclusive, perpetual, worldwide license to use the Customer Property during the Term, for the sole purpose of performing its obligations hereunder.

 

3.6                               General Usage Restrictions.  Customer agrees not to use any Offering for purposes beyond the scope of this Agreement.  Without limiting the foregoing, Customer shall not: (a) modify the Offering or create any derivative product of the Software or SaaS Service, except with the prior written consent of Blackboard, provided that the foregoing shall not be construed to prohibit Customer from configuring the Software or SaaS Service to the extent permitted by the solution’s standard user interface, (b) sublicense, assign, sell, lease or otherwise transfer or convey, or pledge as security or otherwise encumber, Customer’s rights under the Agreement other than as expressly provided for herein, or (c) use the Offering to provide services to third parties other than Authorized End Users in the nature of a service bureau, time sharing arrangement or as an application service provider, as such terms are ordinarily understood within the software industry or for any other reason.  Customer will not obscure, remove or alter any of the trademarks, trade names, logos, patent, trademark, or copyright notices or markings to the Software or SaaS Service, nor will Customer add any other notices or markings to the Software or SaaS Service or any portion thereof except as permitted by the solution’s standard user interface.  Customer shall not use the Software or SaaS Service in violation of Blackboard’s obligations to any third party incurred prior to the Effective Date, provided that Blackboard has notified Customer of such obligation.  Further, in the event that Customer exceeds its license limitations, as set forth in an applicable Schedule or Order Form, additional fees may apply, and Customer shall, on an annual basis, provide Blackboard with documentation as reasonably required by Blackboard to verify its compliance with such license limitations.

 

3.7                               Customer Property.  Customer represents and warrants that: (a) Customer owns or has sufficient rights in and to the Customer Property, including, without limitation, personal, educational, and financial information contained within the Customer Property, in order for Customer and its Authorized End Users to use, and permit use of, the Offering(s), and (b) the Customer Property does not and shall not contain any content, materials, advertising or services that infringe on or violate any applicable law, regulation, or right of a third party. Customer also acknowledges that Customer Property may be accessed by Blackboard’s support or Managed Hosting personnel outside of the country of the hosted facility, and hereby authorizes such access.  Blackboard does not operate or control the information, services, opinions or other content of the Internet that may be incorporated in, operated with or otherwise displayed by the Offerings.  Blackboard reserves the right to remove from any Offering any Customer Property that Blackboard determines, in its sole discretion, may subject Blackboard to liability or may be dangerous, offensive, pornographic, or in violation of applicable law or regulations or the terms of this Agreement.  Customer agrees that it shall make no claim whatsoever against Blackboard relating to the Customer Property (or Blackboard’s removal thereof pursuant to the preceding sentence) or content of the Internet or respecting any information, product, service or software ordered through or provided via the Internet.

 

4.                                      REPRESENTATIONS.

 

4.1                               By Blackboard. Blackboard represents and warrants that (a) Blackboard and any person executing or otherwise agreeing on Blackboard’s behalf to this Agreement (including any Schedule, Order Form or click-through agreement which may be incorporated into this Agreement from time to time) has authority to enter into this Agreement, and (b) during the Term Blackboard will comply with all applicable laws and regulations governing all matters set forth herein.

 

4.2                               By Customer. Customer represents and warrants that (a) Customer and any person executing or otherwise agreeing on Customer’s behalf to this Agreement (including any Schedule, Order Form or click-through agreement which may be incorporated into this Agreement from time to time)  has authority to enter into this Agreement, (b) during the Term it will comply with all applicable laws and regulations governing all matters set forth herein; (c) during the Term it will comply with the then current Blackboard privacy policies, which Blackboard reserves the right to modify, from time to time, effective five (5) days after such modified policies are posted at the relevant link, such posting to constitute effective notice of changes, which privacy policies are hereby incorporated by reference; (d) during the Term Customer shall refrain from using any Offering in a manner that is libelous, defamatory, obscene, infringing or illegal, or otherwise abusing the Offering or the resources available through the Offering; (e)  Customer will take appropriate steps to ensure that it does not share access information (including user identification data and passwords) with third parties except as expressly permitted under this Agreement and (f) during the Term, to the extent that Authorized End Users exercise the rights granted to Customer under this Agreement, Customer shall ensure that such Authorized End Users comply with the obligations applicable to such exercise set forth in this Agreement.

 

5.                                      TERM; TERMINATION.

 

5.1                               Term.  This Agreement shall commence as of the Effective Date and shall continue in effect until the later of: (a) the expiration of the minimum term, as specified on the relevant Order Form, or (b) the expiration or termination of all Order Forms.  Each Order Form, and the license(s) associated therewith, shall terminate as set forth in such Order Form.

 

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5.2                               Termination for Breach. In the event that either Party materially breaches any obligation, representation or warranty under this Agreement, the non-breaching Party may terminate this Agreement in its entirety, or, at the non-breaching Party’s option, it may terminate solely the relevant Order Form pursuant to which such breach has occurred, provided in either case that such breach has not been corrected within thirty (30) days after receipt of a written notice of such breach.  Without limiting the foregoing, either Party may terminate this Agreement immediately upon written notice to the other Party in the event the other Party materially breaches the provisions of Section 9 or the license usage restrictions in any Order Form.

 

5.3                               Effect of Termination. Upon termination of this Agreement, all Order Forms shall automatically and immediately terminate, and all licenses granted under this Agreement shall immediately cease.  Upon termination, Customer will immediately discontinue all use of materials licensed under this Agreement, and will pay to Blackboard all amounts due and payable hereunder.  Also, in the event of any termination prior to the end of any Order Form’s term, Customer shall immediately pay Blackboard all fees which are then due or would become due had no termination occurred.  Each Party: (a) will immediately cease any use of the other Party’s Confidential Information, (b) will delete any of the other Party’s Confidential Information from its computer storage or any other media, including, but not limited to, online and off-line libraries; and (iii) will return to the other Party or, at the other Party’s option, destroy, all copies of the other Party’s Confidential Information then in its possession. Without limiting the foregoing, upon termination of any Order Form (including upon termination of this Agreement in its entirety), the provisions of such Order Form regarding the effect of such Order Form’s termination shall also apply.

 

5.4                               Survival.  The termination or expiration of the Agreement shall not relieve either Party of any obligation or liability, nor impair the exercise of rights, accrued hereunder prior to such termination.  Without limiting the foregoing, the provisions of Sections 1, 2, 5, 7, 9 and 10 of this Master Agreement shall survive the termination of this Agreement for any reason.

 

6.                                      FEES; EXPENSES.

 

6.1                               Fees; Payments.  In consideration for Blackboard’s performance under this Agreement, Customer or Affiliate, as the case may be depending on the party that is signing the Order Form(s), agrees to pay Blackboard all fees required by the Order Forms, as applicable, which fees will be due in accordance with the provisions of the relevant Order Form, but in no event later than thirty (30) days after the date of an invoice from Blackboard.  For purposes of clarity, Laureate Education, Inc. shall not be liable for Order Forms executed by its Affiliates. Blackboard expressly reserves the right to change the fees payable under any Order Form with respect to any renewal of such Order Form upon expiration of its then-current term. All fees for any annual term Software license or annual Services shall be due and payable upon the date of execution of the applicable Order Form.  Customer will pay all fees in U.S. dollars unless otherwise set forth in the applicable Order Form. Payments shall be sent to the address indicated on the invoice.

 

6.2                               Late Fees.  Blackboard may charge interest on any amounts overdue by more than fifteen (15) days at the lower of: (a) the highest permissible rate, or (b) 18% per annum, charged at 1.5% per month from the date on which such amount fell due until the date of payment, whether before or after judgment. Customer acknowledges that any delay in payment for any Initial Term or Renewal Term may result in termination of the Blackboard license and/or an interruption in service at Blackboard’s sole discretion.

 

6.3                               Taxes.  The fees hereunder do not include any sales, use, excise, import or export, value-added (“VAT”), goods and services (“GST”), or similar tax or interest, or any costs associated with the collection or withholding thereof, or any government permit fees, license fees or customs or similar fees (“Taxes”) levied on the delivery of any Software or Equipment or the performance of Services by Blackboard to Customer.  Customer will be responsible for payment of such Taxes at point of sale.  If Customer is exempt from any such Taxes, then such Taxes shall not be charged to Customer upon Blackboard’s receipt of a copy of documentation acceptable to Blackboard that satisfies the requirements of the relevant tax authority to exempt such fees from such Tax (such as Customer’s tax exemption certificate, or VAT Registration Number.)  All payments due under this Agreement shall be made without any deduction or withholding, unless such deduction or withholding is required by any applicable law, regulation, or rule then in effect.  If Customer is required to deduct or withhold, Customer will promptly notify Blackboard of the requirement, timely pay the required amount to the relevant tax authority, provide Blackboard with an official receipt, certified copy or other documentation acceptable to Blackboard evidencing payment, and pay to Blackboard the amount to which Blackboard is otherwise entitled under this Agreement, less the amount required to be deducted or withheld. In the event, and to the extent, that Blackboard is unable to claim an income tax credit for the full amount deducted or withheld (the “Unrecouped Withholding”), Customer shall pay Blackboard, within sixty (60) days following receipt of an invoice from Blackboard, the Unrecouped Withholding.

 

6.4                               Expenses.  Except as provided in this Agreement, each party will be responsible for its own expenses incurred in rendering its performance or exercising its rights under this Agreement, including, without limitation, the cost of facilities, work space, computers and computer time, development tools and platforms, utilities management, personnel and supplies.  In addition, if Blackboard is required by applicable law, legal process or government action or for a Customer audit to produce information, files, documents or personnel as witnesses with respect to this Agreement or the products or services provided to Customer by Blackboard, Customer shall reimburse Blackboard for any professional time and expenses including reasonable external or internal legal costs incurred to respond to the request, unless Blackboard is a party to the proceeding or the subject of the investigation.

 

6.5                               Purchase Orders. Customer agrees that if its internal procedures require that a purchase order be issued as a prerequisite to payment of any amounts due to Blackboard, it will timely issue such purchase order and inform Blackboard of the number and amount thereof.  Customer agrees that the absence of a purchase order, other ordering document or administrative procedure may not be raised as a defense to avoid or impair the performance of any of Customer’s obligations under this Agreement, including payment of amounts owed to Blackboard.

 

7.                                      WARRANTIES, LIMITATIONS OF LIABILITY AND INDEMNIFICATION.

 

7.1                               Disclaimer of Warranty.  EXCEPT AS EXPRESSLY AND SPECIFICALLY PROVIDED IN ANY ORDER FORM OR SCHEDULE: (A) THE OFFERINGS ARE PROVIDED “AS IS” AND TO THE MAXIMUM EXTENT PERMITTED BY LAW, BLACKBOARD AND ITS LICENSORS AND SUPPLIERS DISCLAIM ALL OTHER REPRESENTATIONS OR WARRANTIES OF ANY KIND, EXPRESS, IMPLIED OR STATUTORY, INCLUDING, WITHOUT LIMITATION, ANY WARRANTIES OF MERCHANTABILITY OR FITNESS FOR A PARTICULAR PURPOSE; (B) NEITHER BLACKBOARD NOR ITS LICENSORS WARRANT THAT THE FUNCTIONS OR INFORMATION CONTAINED IN THE SOFTWARE WILL MEET ANY REQUIREMENTS OR NEEDS CUSTOMER MAY HAVE, OR THAT THE SOFTWARE WILL OPERATE ERROR FREE OR WITHOUT INTERRUPTION, OR THAT ANY DEFECTS OR ERRORS IN THE SOFTWARE WILL BE CORRECTED, OR THAT THE SOFTWARE IS COMPATIBLE WITH ANY PARTICULAR 

 

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COMPUTER SYSTEM OR SOFTWARE; AND (C) BLACKBOARD AND ITS LICENSORS MAKE NO GUARANTEE OF ACCESS TO OR OF ACCURACY OF THE CONTENT CONTAINED IN OR ACCESSED THROUGH THE OFFERINGS.

 

7.2                               Limitations of Liability.  TO THE MAXIMUM EXTENT PERMITTED BY LAW, IN NO EVENT WILL EITHER PARTY BE LIABLE TO THE OTHER FOR ANY OF THE FOLLOWING TYPES OF LOSS OR DAMAGE ARISING IN ANY WAY OUT OF OR IN CONNECTION WITH THIS AGREEMENT OR THE OFFERINGS, WHETHER OR NOT SUCH PARTY WAS ADVISED IN ADVANCE OF THE POSSIBILITY OF SUCH LOSS OR DAMAGE: (A) ANY LOSS OF BUSINESS, CONTRACTS, PROFITS, ANTICIPATED SAVINGS, GOODWILL OR REVENUE; (B) ANY LOSS OR CORRUPTION OF DATA OR (C) ANY INCIDENTAL, INDIRECT OR CONSEQUENTIAL LOSSES OR DAMAGES WHATSOEVER (INCLUDING, WITHOUT LIMITATION, SPECIAL, PUNITIVE, OR EXEMPLARY DAMAGES).  EXCEPT FOR THE INDEMNITY SET FORTH IN SECTION 8.1, IN NO EVENT SHALL BLACKBOARD OR ITS LICENSORS’ CUMULATIVE LIABILITY FOR ALL CLAIMS ARISING FROM OR RELATING TO THIS AGREEMENT, REGARDLESS OF THE NATURE OF THE CLAIM, EXCEED THE AMOUNT OF FEES PAID BY CUSTOMER UNDER THIS AGREEMENT FOR THE AFFECTED OFFERING DURING THE TWENTY FOUR (24)-MONTH PERIOD IMMEDIATELY PRIOR TO THE EVENT, ACT OR OMISSION GIVING RISE TO SUCH LIABILITY.  THIS LIMITATION OF LIABILITY IS INTENDED TO APPLY WITHOUT REGARD TO WHETHER OTHER PROVISIONS OF THIS AGREEMENT HAVE BEEN BREACHED OR HAVE PROVEN INEFFECTIVE.

 

7.3.                            Essential Basis.  The Parties acknowledge and agree that the disclaimers, exclusions and limitations of liability set forth in this Section 7 form an essential basis of this Agreement, and that, absent any such disclaimers, exclusions or limitations of liability, the terms of this Agreement, including, without limitation, the economic terms, would be substantially different.

 

7.4.                            Indemnification.

 

a.              Indemnification by Customer.  In addition to any indemnification obligations set forth in an applicable Schedule or Order Form, Customer will indemnify, defend and hold harmless Blackboard, its affiliates and their respective directors, officers, employees, agents, successors and assigns (each a “Blackboard Indemnitee”) from and against any and all losses, damages or expenses (including, without limitation, reasonable attorneys’ fees and costs) arising from any claim, suit or proceeding brought by a third party against a Blackboard Indemnitee arising out of Customer’s (i) gross negligence or willful misconduct; or (ii) breach of representation and warranty under the Agreement.

 

b.              Indemnification by Blackboard. In addition to any indemnification obligations set forth in an applicable Schedule or Order Form, Blackboard will indemnify, defend and hold harmless Customer, its affiliates and their respective directors, officers, employees, agents, successors and assigns (each a “Customer Indemnitee”) from and against any and all losses, damages or expenses (including, without limitation, reasonable attorneys’ fees and costs) arising from any claim, suit or proceeding brought by a third party against a Customer Indemnitee arising out of Blackboard’s (i) gross negligence or willful misconduct; or (ii) breach of representation and warranty under the Agreement.

 

c.               Inapplicability to Infringement.  For the avoidance of doubt, the indemnification obligations set forth in this Section 7.4 shall not apply to infringement, which is addressed under Section 8 hereof.

 

8.                                      INFRINGEMENT.

 

8.1                               Blackboard Infringement Obligations.  If any third party brings a claim against Customer alleging that the Offering infringes a patent or a copyright under applicable law of any jurisdiction in which Customer is using the Offering, Customer must promptly notify Blackboard in writing and make no admission in relation to such alleged infringement.  Provided that Customer has promptly fulfilled all of the foregoing obligations and is not in material breach of the Agreement, Blackboard shall indemnify, defend, and settle such claim, at its own expense and option: (a) procure Customer the right to use the Offering, (b) modify or replace the Offering to avoid infringement; or (c) refund the applicable fee paid for the current term.  In the event that Blackboard exercises option (a) above, it shall have the sole and exclusive authority to defend and/or settle any such claim or action, provided that Blackboard will keep Customer informed of, and will consult with any independent legal advisors appointed by Customer at Customer’s own expense regarding the progress of such defense.

 

8.2                               Exceptions.  Blackboard shall have no liability to Customer under Section 8.1 or otherwise for any claim or action alleging infringement based upon: (a) any use of the Offering in a manner other than as specified by Blackboard, (b) any combination of the Offering with other products, equipment, devices, software, systems or data not manufactured or provided by Blackboard to the extent such claim is directed against such combination, (c) the Customer Content, or the use of the Customer Content, or (d) any modifications or customization of the Offering by any person other than Blackboard or a Blackboard-authorized third party (any of the foregoing, separately and collectively, “Customer Matters”).

 

8.3                               Customer Infringement Obligations.  Customer shall, at its own expense, indemnify and, at Blackboard’s option, defend Blackboard and each other Blackboard Indemnitee against any losses, damages or expenses (including, without limitation, reasonable attorneys’ fees and costs) arising from any claim, suit or proceeding brought by a third party against a Blackboard Indemnitee arising out of a Customer Matter and shall pay any damages finally awarded or settlement amounts agreed upon to the extent based upon a Customer Matter (any of the foregoing indemnifiable matters, each a “Blackboard Claim”), provided that Customer will not settle any Blackboard Claim unless such settlement completely and forever releases each Blackboard Indemnitee with respect thereto or unless Blackboard provides its prior written consent to such settlement.  Blackboard agrees (a) to provide Customer with prompt written notice of any Blackboard Claim, and (b) to provide such assistance as Customer may reasonably request, at Customer’s expense, in order to settle or defend any such Blackboard Claim.

 

8.4                               Exclusive Remedy.  THE FOREGOING PROVISIONS OF THIS SECTION 8 STATE THE ENTIRE LIABILITY AND OBLIGATIONS OF EACH PARTY, AND THE EXCLUSIVE REMEDY OF EACH PARTY WITH RESPECT TO CLAIMS BY ANY THIRD PARTY ALLEGING INFRINGEMENT OF ANY INTELLECTUAL PROPERTY RIGHT.

 

9.                                      CONFIDENTIALITY.

 

9.1                               Nondisclosure and Nonuse.  Each Party receiving Confidential Information agrees not to use such Confidential Information except for the purposes set forth in this Agreement, and pursuant to such use shall disclose such Confidential Information only to those directors, officers, employees and agents of such Party (a) whose duties justify their need to know such information, and (b) who have been clearly informed of their obligation to maintain the confidential, proprietary and/or trade secret status of such Confidential Information.  Each Party receiving Confidential Information shall treat such information as strictly confidential, and shall use the same care to prevent disclosure of such 

 

8

 

information as such Party uses with respect to its own confidential and proprietary information, provided that in any case it shall not use less than the care a reasonable person would use under similar circumstances.  Each Party acknowledges that it has all requisite authority under applicable laws to provide the other Party with access to Confidential Information.

 

9.2                               Notice.  The receiving Party will promptly notify the disclosing Party in the event the receiving Party learns of any unauthorized possession, use or disclosure of the Confidential Information and will provide such cooperation as the disclosing Party may reasonably request, at the disclosing Party’s expense, in any litigation against any third parties to protect the disclosing Party’s rights with respect to the Confidential Information.

 

9.3                               Terms of Agreement.  Except as otherwise provided by law, neither Party shall disclose the terms of the Agreement to any third party; provided, however, that either Party may disclose the terms of this Agreement to its professional advisers, or to any potential investor or acquirer of a substantial part of such Party’s business (whether by merger, sale of assets, sale of stock or otherwise), provided that such third party is bound by a written agreement or legal duty on terms at least as strict as those set out in this Section 9 to keep such terms confidential.

 

9.4                               Exceptions to Confidential Treatment.  Notwithstanding the foregoing, the preceding provisions of this Section 9 will not apply to information that: (a) is publicly available or in the public domain at the time disclosed, (b) is or becomes publicly available or enters the public domain through no fault of the recipient, (c) is rightfully communicated to the recipient by persons not bound by confidentiality obligations with respect thereto, (d) is already in the recipient’s possession free of any confidentiality obligations with respect thereto at the time of disclosure, (e) is independently developed by the recipient, or (f) is approved for release or disclosure by the disclosing Party without restriction.  Each Party may disclose Confidential Information to the limited extent necessary: (a) to comply with the order of a court of competent jurisdiction or other governmental body having authority over such Party, provided that the Party making the disclosure pursuant to the order will first have given notice to the other Party and made a reasonable effort to obtain a protective order, (b) to comply with applicable law or regulation requiring such disclosure, or (c) to make such court filings as may be required to establish a Party’s rights under this Agreement. Notwithstanding anything in this Section to the contrary, and, subject to applicable law, Blackboard shall have the right to share individual Authorized End User Confidential Information to the extent it has received consent for such sharing from such Authorized End User.

 

9.5                               Contact Information.  Customer hereby authorizes Blackboard to include and use individual Customer contact information (i.e., primary contact, system administrator, billing contact) in contact lists for emails, mailings, and faxes from Blackboard relating to Blackboard-provided products and services, support, product and service matters, newsletters, user groups and events, and to provide contact information to third parties whose products or services Customer has purchased through Blackboard for the purpose of providing those products and services or support or maintenance for the products and services.  Customer acknowledges that it has the right to provide such consent, and Blackboard acknowledges that it will not use or distribute the contact information except as explicitly set forth above.

 

9.6                               Other Rights.  Customer hereby grants Blackboard the limited right to collect aggregated usage statistics with respect to the Offerings.  Such usage statistics are and shall be aggregated and not identifiable of any individual, including any Authorized End User.  To the extent that any Offering contains an Auto Report feature for this purpose, Customer will not disable the Auto Report feature of the Offering, or undertake any action which has the effect of preventing such feature from operating correctly or the effect of modifying the information reported thereby.  Except to the extent permitted by applicable law in the absence of any express license or other grant of rights, neither party will use any trade name, trademark, service mark, logo or commercial symbol, or any other proprietary rights of the other party in any manner (including without limitation, reference to the other party as a client, customer or supplier in any press release, advertisement or other promotional material).

 

10.                               MISCELLANEOUS MATTERS.

 

10.1.                     Severability.  Should any term or provision of this Agreement be finally determined by a court of competent jurisdiction to be void, invalid, unenforceable or contrary to law or equity, the offending term or provision shall be construed (a) to have been modified and limited (or if strictly necessary, deleted) only to the extent required to conform to the requirements of law, and (b) to give effect to the intent of the Parties (including, without limitation, with respect to the economic effect of the Agreement), and the remainder of this Agreement (or, as the case may be, the application of such provisions to other circumstances) shall not be affected thereby but rather shall be enforced to the greatest extent permitted by law.

 

10.2.                     Conflict Resolution.  This Agreement shall for all purposes be governed by and interpreted in accordance with the laws of the State of New York.

 

10.3.                     Modification and Waiver.  No modification, amendment, supplement, or other change to this Agreement will be effective unless set forth in writing and signed by duly authorized representatives of Blackboard and Customer.  No waivers under this Agreement will be effective unless expressly set forth in writing and signed by a duly authorized representative of the Party against whom enforcement thereof is sought.  The failure of either Party to insist upon strict performance of any provision of this Agreement, or to exercise any right provided for herein, shall not be deemed to be a waiver of such provision or right with respect to subsequent claims (unless expressly so stated in a valid amendment or waiver), and no waiver of any provision or right shall affect the right of the waiving Party to enforce any other provision or right herein.

 

10.4.                     Assignment.  No right or obligation of Customer under this Agreement may be assigned, delegated or otherwise transferred, whether by agreement, operation of law or otherwise, without the express prior written consent of Blackboard, and any attempt to assign, delegate or otherwise transfer any of Customer’s rights or obligations hereunder, without such consent, shall be void.  Subject to the preceding sentence, this Agreement shall bind each Party and its permitted successors and assigns.

 

10.5.                     Marketing/PR. Customer may agree to be included and/or actively participate in public relations activities, including, but not limited to, press releases, traditional and social media engagement, blogs, etc. at Customer’s sole option. All activities are at the discretion of Blackboard and will be approved by the customer before publication. Customer and Blackboard shall work together to ensure completion of all PR/media activities as soon as practical after contract Effective Date.

 

9

 

10.6.                     Remedies.  The Parties agree that any breach of confidentiality or proprietary rights would cause irreparable injury for which no adequate remedy at law exists; therefore, the Parties agree that equitable remedies, including without limitation, injunctive relief and specific performance, are appropriate remedies to redress any such breach or threatened breach of this Agreement, in addition to other remedies available to the Parties.  All rights and remedies hereunder shall be cumulative, may be exercised singularly or concurrently and shall not be deemed exclusive except as provided in Section 8.  If any formal dispute resolution is brought to enforce any obligations hereunder, the prevailing Party shall be entitled to receive its legal fees, costs and other collection expenses, in addition to any other relief it may receive.

 

10.7.                     Notices.  Any notice or communication permitted or required hereunder shall be in writing and shall be delivered in person or by courier, or mailed by certified or registered mail, postage prepaid, return receipt requested, and, in the case of notices to Blackboard, sent to Blackboard Inc., Attn: General Counsel, 650 Massachusetts Avenue NW, 6th Floor, Washington DC, 20001 or to such other address as shall be given in accordance with this Section 10.6, and, in the case of Customer, to the address on the applicable Order Form, and shall in each case be effective upon receipt.  Alternatively, Customer may provide notices to, provided that Customer provides an email address to Blackboard for notices which Blackboard may send to Customer.

 

10.8.                     Force Majeure.  Except with regard to payment obligations, neither Party will be responsible for any failure to fulfill its obligations due to causes beyond its reasonable control, including without limitation, acts or omissions of government or military authority, acts of God, materials shortages, transportation delays, fires, floods, labor disturbances, riots, wars, terrorist acts or inability to obtain any export or import license or other approval or authorization of any government authority.

 

10.9.                     U.S. Government Users.  The following applies to any end user that is a U.S. Government entity:  Each of the components that comprise the Software is a “commercial item” as that term is defined at 48 C.F.R. 2.101, consisting of “commercial computer software” and/or “commercial computer software documentation” as such terms are used in 48 C.F.R. 12.212.  Consistent with 48 C.F.R. 12.212 and 48 C.F.R. 227.7202-1 through 227.7202-4, all U.S. Government end users acquire the Software with only those rights set forth herein.  Contractor/manufacturer is Blackboard Inc., 650 Massachusetts Avenue NW, 6th Floor, Washington, DC 20001.  All rights not specifically granted in this Agreement are reserved by Blackboard.

 

10.10.              Export Control.  Customer shall not export or allow the export or re-export the Offering, any components thereof or any Confidential Information of Blackboard without the express, prior, written consent of Blackboard and except in compliance with all export laws and regulations of the U.S. Department of Commerce and all other U.S. agencies and authorities, including without limitation, the Export Administration Regulations of the U.S. Department of Commerce Bureau of Export Administration (as contained in 15 C.F.R. Parts 730-772), and, if applicable, relevant foreign laws and regulations.

 

10.11.              Relationship.  Blackboard and Customer are independent contracting parties.  This Agreement shall not constitute the Parties as principal and agent, partners, joint venturers, or employer and employee.

 

10.12.              Entire Agreement.  This Master Agreement, together with the Order Form(s), Schedule(s) and other Exhibit(s) constitutes the entire, full and complete Agreement between the Parties concerning the subject matter of the Agreement and supersedes all prior or contemporaneous oral or written communications, proposals, conditions, representations and warranties, and this Agreement prevails over any conflicting or additional terms of any quote, order, acknowledgment, or other communication between the Parties relating to its subject matter.  Any component of this Agreement, including any Order Form thereto, may be executed in counterparts, each of which will be deemed an original, and all of which together constitute one and the same instrument.  Facsimile signatures will be considered original signatures.

 

10

 

Exhibit B

 

SAMPLE Blackboard Standard Order Form

 

 

This Blackboard Order Form (“Order Form”) by and between Blackboard (as defined below) and {{CompanyName}} (“Customer”) details the terms of Customer’s use of the products and services set forth below (“Product and Pricing Summary”).  This Order Form shall become effective on the Effective Date.  This Order Form, together with the Blackboard Master Agreement between Blackboard Inc. and Laureate Education Inc. dated               (the “Blackboard Master Agreement”) and incorporated by this reference, form the entire agreement between the parties in respect of the products and services set forth in the Product and Pricing Summary.  Notwithstanding anything to the contrary in any purchase order or other document provided by Customer, any product or service provided by Blackboard to Customer in connection with a purchase order related to this Order Form is conditioned upon Customer’s acceptance of this Order Form and the Blackboard Master Agreement.. Any additional, conflicting or different terms proffered by Customer in a purchase order or otherwise shall be deemed null and void. Each of the individuals executing this Order Form represent and warrant that he or she is authorized to execute the Agreement on behalf of Customer or Blackboard, as applicable.

 

In consideration of the promises set forth herein, and other good and valuable consideration, the receipt of which are hereby acknowledged, the parties hereby agree as follows:

 

A.  Product and Pricing Summary

 

	
Qty
    	
 
    	
U of M
    	
 
    	
Product Code
    	
 
    	
Product or Service Description
    	
 
    	
List Price
    	
 
    	
Price Reduction
    	
 
    	
Net Price
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
TOTALS:
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    

 

DESIGNATED SERVER SITE:

 

B.  Term

 

Initial Term: Unless otherwise specified in the Product or Service Description above, the Initial Term shall be [insert number of months or years, as applicable] following the Effective Date, such that the Initial Term terminates on December 19, 2019.

 

Unless otherwise specified in the Product or Service Description above, this Order Form shall be renewed automatically for successive periods of one (1) year (each a “Renewal Term”) after the expiration of the Initial Term and any subsequent Renewal Term, unless Customer provides Blackboard, or Blackboard provides Customer, with a written notice to the contrary thirty (30) days prior to the end of the Initial Term or Renewal Term, as applicable.

 

Effective Date:  Upon execution of this Order Form.

 

C.  Payment Terms

 

1.              All initial and subsequent payments shall be due Net 30.  Unless otherwise specified, all dollars ($) are United States currency.

2.              Customer shall be invoiced for amounts due in respect of the first year of the Initial Term upon execution of this Order Form.

3.              Sales Tax:  If applicable, a copy of your Sales Tax Direct Pay Certificate or your Sales Tax Exemption Certificate must be returned with this Order Form.

 

D.  Special Provisions

 

[ADD/DELETE LINKS AND SPECIAL PROVISIONS AS REQUIRED- THE FOLLOWING ARE SAMPLES ONLY]

 

1.              The terms and conditions set forth at http://agreements.blackboard.com/bbinc/licenseschedule.aspx shall be incorporated herein.

2.              All terms and conditions set forth at http://agreements.blackboard.com/bbinc/managedhostingschedule.aspx shall be incorporated herein.

3.              All terms and conditions set forth at http://agreements.blackboard.com/bbinc/analyticsmhschedule.aspx shall be incorporated herein.

4.              The terms and conditions set forth at http://agreements.blackboard.com/bbinc/collaborateschedule.aspx shall be incorporated herein

 

11

 

Expansion of Licensed Use.  Blackboard Software is priced annually based upon Blackboard User Bands.  Blackboard User Bands are comprised of the FTE (as defined below) of licensing institution PLUS the number of Users in outside programs.  Customer agrees that the FTE provided to Blackboard is correct and accurate to the best of its knowledge. For the Software on this Schedule, Customer’s license for the Software on this Schedule shall be expanded in increments as indicated below and Blackboard will assess additional license fees for increases in Customer’s FTE.  Blackboard’s User Bands are as follows:

 

Blackboard’s assessment of additional license fees will be in accordance with Blackboard’s then-current pricing.  In the event of growth related to a Customer merger or acquisition, Blackboard’s assessment of additional license fees will be in accordance with Blackboards then-current pricing.

 

	
Customer: 
    	
 
    	
Blackboard   (“Blackboard”)
    
	
 
    	
 
    	
 
    
	
{{CompanyName}}
    	
 
    	
 
    
	
Signature
    	
 
    	
Signature
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
Name (printed)
    	
 
    	
Name (printed)
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
Title (printed)
    	
 
    	
Title (printed)
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
Date
    	
 
    	
Date
    

 

12

 

SCHEDULE 1

 

LAUREATE AFFILIATES

 

	
Blue Mountains   International Hotel Management School (BMIHMS) - Kendall College
    
	
Think Education Group
    
	
Torrens University   Australia (TUA)
    
	
Blue Mountains   International Hotel Management School — Suzhou Campus
    
	
Hunan International   Economics University (HIEU)
    
	
Les Roches Jin Jiang   International Hotel Management College
    
	
Xi’an   Jiaotong-Liverpool University (XJTLU)
    
	
Pearl Academy 
    
	
University of   Petroleum & Energy Studies (UPES) 
    
	
University of   Technology and Management (UTM)
    
	
INTI College Indonesia
    
	
INTI International University & Colleges
    
	
Media Design School -   Santa Fe UofAD
    
	
Stamford International   University
    
	
Université Internationale   de Casablanca (UIC)
    
	
Monash South Africa
    
	
European University Cyprus (EUC)
    
	
École Centrale   d’Electronique (ECE)
    
	
École Supérieure du   Commerce Extérieur (ESCE)
    
	
European Business   School Paris (EBS Paris)
    
	
Institut Français de Gestion (IFG)
    
	
BiTS (Business and   Information Technology School)
    
	
BTK group
    
	
Domus Academy - Santa   Fe UofAD
    
	
Nuova Accademia di   Belle Arti Milano (NABA) - Santa Fe UofAD
    
	
Universidade Europeia   (UE)
    
	
Centro Superior de   Edificación, Arquitectura e Ingeniería (PROY3CTA)
    
	
ESTEMA Escuela de   Negocios
    
	
IEDE Business School
    
	
Les Roches Marbella
    
	
Real Madrid   International School
    
	
Universidad Europea de   Canarias 
    
	
Universidad Europea de Madrid (UEM)
    
	
Universidad Europea   Valencia
    
	
Glion Institute of Higher Education - Kendall College
    
	
Les Roches Gruyère,   University of Applied Sciences (LRG) - Kendall College
    
	
Les Roches   International School of Hotel Management - Kendall College
    
	
Istanbul Bilgi University
    
	
University of Liverpool (in partnership with Laureate Online Education,   B.V.)
    
	
University of Roehampton, London (in partnership with Laureate Online   Education, B.V.)
    
	
Royal Academy of   Culinary Arts (RACA)
    

 

13

 

	
Higher Institute for   Paper and Industrial Technologies (HIPIT)
    
	
Higher Institute for   Water and Power Technologies (HIWPT)
    
	
Laureate Al Kharj   Female’s College of Excellence
    
	
Laureate Jeddah   Technical College of Excellence
    
	
Laureate Mecca Female’s   College of Excellence
    
	
Laureate Riyadh Tourism   and Hospitality College of Excellence
    
	
Riyadh Polytechnic   Institute (RPI)
    
	
Business School São   Paulo (BSP)
    
	
CEDEPE Business School
    
	
Centro Universitário do   Norte (UniNorte)
    
	
Centro Universitário   IBMR 
    
	
Centro Universitário   Ritter dos Reis (UniRitter)
    
	
Faculdade de Desenvolvimento   do Rio Grande do Sul (FADERGS)
    
	
Faculdade dos   Guararapes (FG)
    
	
Faculdade Internacional   da Paraíba (FPB)
    
	
Universidade Anhembi   Morumbi (UAM)
    
	
Universidade Potiguar   (UnP)
    
	
Universidade Salvador   (UNIFACS)
    
	
Institute for Executive   Development Chile (IEDE)
    
	
Instituto Profesional   AIEP
    
	
Instituto Profesional   Escuela Moderna de Música (EMM)
    
	
Universidad Andrés Bello (UNAB)
    
	
Universidad de Las   Américas Chile (UDLA)
    
	
Universidad Viña del   Mar (UVM)
    
	
Universidad Americana   (UAM)
    
	
Universidad Latina de Costa   Rica
    
	
Universidad   Latinoamericana de Ciencia y Tecnología (ULACIT)
    
	
Universidad de Las   Américas (UDLA)
    
	
Centro Universitario   Tecnológico (CEUTEC)
    
	
Universidad Tecnológica   Centroamericana (UNITEC)
    
	
Laureate Mexico   (UVM & UNITEC)
    
	
Universidad del Valle de México (UVM)
    
	
Universidad Tecnológica de México (UNITEC)
    
	
Universidad   Interamericana de Panamá (UIP)
    
	
CIBERTEC
    
	
Instituto Tecnológico   del Norte (ITN)
    
	
Universidad Peruana de Ciencias Aplicadas (UPC)
    
	
Universidad Privada del   Norte (UPN)
    
	
Canter - Continuing Ed Program Baltimore
    
	
Laureate Network Products and Services (LNPS)
    
	
Kendall College
    
	
Walden University
    
	
National Hispanic University (NHU)
    
	
NewSchool of Architecture and Design (NSAD)
    
	
Santa Fe University of   Art and Design
    

 

14

 

	
University of St.   Augustine for Health Sciences (USA)
    

 

15

 

SCHEDULE 2

 

Laureate Global Standard LMS - Pricing model

 

	
 
    	
 
    	
Price per authorized user based on total population at time of order
    	
 
    
	
 
    	
 
    	
[***]
    	
 
    	
[***]
    	
 
    	
[***]
    	
 
    	
[***]
    	
 
    
	
Learn Course   Delivery - “Learn Light”
    	
 
    	
[***]
    	
 
    	
[***]
    	
 
    	
[***]
    	
 
    	
[***]
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
Learn Course   Delivery, Community, Content, Mobile “Laureate Global Standard”
    	
 
    	
[***]
    	
 
    	
[***]
    	
 
    	
[***]
    	
 
    	
[***]
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
Laureate Global   Standard plus Collaborate
    	
 
    	
[***]
    	
 
    	
[***]
    	
 
    	
[***]
    	
 
    	
[***]
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
Add Analytics   for Learn Licence to any of the above
    	
 
    	
[***]
    	
 
    	
[***]
    	
 
    	
[***]
    	
 
    	
[***]
    	
 
    

 

Note - all packages above available to order at any size of authorized users. [***]% discount applies on single orders of over [***] users, [***]% discount applies on orders over [***] users

 

Note - The package below “Full Bb Suite with Managed Hosting”  only available on single orders of min [***] authorized users on shared service. [***]% discount applies against single order of more than [***] users

 

	
Full Bb Suite with Managed Hosting - Global Standard plus Collaborate,   Analytics and Diamond Managed Hosting (Brazil package)
    	
 
    	
[***]
    	
 
    	
[***]
    	
 
    	
[***]
    	
 
    	
[***]
    	
 
    

 

Notes:

* *Collaborate and Mobile Learn will be provided to GPS schools at [***] until the end of their current agreement. Schools must purchase min $[***] getting started services

*Optional Managed Hosting Pricing is based on a single production environment implementation.

 

[***] Indicates material that has been omitted and for which confidential treatment has been requested. All such omitted material has been filed with the Securities and Exchange Commission pursuant to Rule 406 under the Securities Act of 1933, as amended.

 

 

SCHEDULE 3

 

GPS / *non GPS INSTITUTIONS

 

	
Walden   University
    	
 
    	
GPS
    	
 
    	
USA
    
	
University   of Liverpool
    	
 
    	
GPS
    	
 
    	
UK
    
	
Canter   - Continuing Ed Program Baltimore
    	
 
    	
GPS
    	
 
    	
USA
    
	
Laureate   Network Products and Services (LNPS)
    	
 
    	
GPS
    	
 
    	
USA
    
	
Kendall   College
    	
 
    	
GPS
    	
 
    	
USA
    
	
University   of Roehampton, London
    	
 
    	
GPS
    	
 
    	
UK
    
	
National   Hispanic University (NHU)
    	
 
    	
GPS
    	
 
    	
USA
    
	
Glion Institute   of Higher Education
    	
 
    	
GPS
    	
 
    	
Switzerland
    
	
NewSchool   of Architecture and Design (NSAD)
    	
 
    	
GPS
    	
 
    	
USA
    
	
Universidad   Peruana de Ciencias Aplicadas (UPC)
    	
 
    	
non-GPS
    	
 
    	
Peru
    
	
Universidad   del Valle de México (UVM)
    	
 
    	
non-GPS
    	
 
    	
Mexico
    
	
Universidad   Tecnológica de México (UNITEC)
    	
 
    	
non-GPS
    	
 
    	
Mexico
    
	
INTI   International University & Colleges
    	
 
    	
non-GPS
    	
 
    	
Malaysia
    
	
Universidad   Andrés Bello (UNAB)
    	
 
    	
non-GPS
    	
 
    	
Chile
    
	
Istanbul   Bilgi University
    	
 
    	
non-GPS
    	
 
    	
Turkey
    
	
Institut   Français de Gestion (IFG)
    	
 
    	
non-GPS
    	
 
    	
France
    
	
European   University Cyprus (EUC)
    	
 
    	
non-GPS
    	
 
    	
Cyprus
    
	
Universidad   Europea de Madrid (UEM)
    	
 
    	
non-GPS
    	
 
    	
Spain
    

 

*Note: ALL LIU Institutions shall be considered “non-GPS” institutions for purposes of this Agreement.

 

2

 

SCHEDULE 4

 

Private Cloud Implementation

 

	
# of Authorized End Users
    	
 
    	
One Time Set up Fee
    	
 
    	
Year 1 Annual Service Fee
    	
 
    	
Bandwidth and Storage Included
    
	
[***]
    	
 
    	
[***]
    	
 
    	
[***]
    	
 
    	
[***]
    
	
[***]
    	
 
    	
[***]
    	
 
    	
[***]
    	
 
    	
[***]
    
	
[***]
    	
 
    	
[***]
    	
 
    	
[***]
    	
 
    	
[***]
    
	
[***]
    	
 
    	
[***]
    	
 
    	
[***]
    	
 
    	
[***]
    
	
[***]
    	
 
    	
[***]
    	
 
    	
[***]
    	
 
    	
[***]
    
	
[***]
    	
 
    	
[***]
    	
 
    	
[***]
    	
 
    	
[***]
    
	
[***]
    	
 
    	
[***]
    	
 
    	
[***]
    	
 
    	
[***]
    
	
[***]
    	
 
    	
[***]
    	
 
    	
[***]
    	
 
    	
[***]
    
	
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[***] Indicates material that has been omitted and for which confidential treatment has been requested. All such omitted material has been filed with the Securities and Exchange Commission pursuant to Rule 406 under the Securities Act of 1933, as amended.

 

3Exhibit 10.47

 

STOCKHOLDER’S AGREEMENT

 

This Stockholder’s Agreement (as it may be amended, modified, restated or supplemented from time to time, this “Agreement”) is entered into as of [       ] among Laureate Education, Inc., a Maryland corporation (the “Company”), Wengen Alberta, Limited Partnership, an Alberta limited partnership (“Parent”), [         ], (the “Stockholder”), and [          ], the representative Director of the Stockholder’s affiliate, [         ], on the Company’s Board of Directors (the “Representative”) (the Company, Parent, the Stockholder and the Representative being hereinafter collectively referred to as the “Parties”).  All capitalized terms not immediately defined are hereinafter defined in Section 6(b) of this Agreement.

 

RECITALS

 

WHEREAS, pursuant to the Securityholders Agreement, dated July 11, 2007, by and among Parent and the other parties thereto (as amended from time to time, the “Securityholders Agreement”), the Stockholder’s affiliate has the right to appoint a director or observer, as specified in the Securityholders Agreement, to the Board of Directors of the Company (the “Board”);

 

WHEREAS, the Representative, in his or her capacity as a representative of the Stockholder, may be entitled to receive fees from the Company, from time to time, as determined by the Company, in respect of services provided by him or her as a director or observer, as the case may be on the Board (the “Fees”); and

 

WHEREAS, Representative has elected to receive and upon such election is required to assign to the Stockholder, and the Company has agreed to issue to the Stockholder at the direction of Representative, shares of common stock of the Company, par value $0.001 (the “Common Stock”) in lieu of Representative receiving cash in respect of Fees (such shares of Common Stock issued from time to time to the Stockholder, in respect of Fees or otherwise, the “Restricted Stock”).

 

NOW THEREFORE, to implement the foregoing and in consideration of the mutual agreements contained herein, the Parties agree as follows:

 

1.     Issuance of Restricted Stock.

 

(a)   Subject to the terms and conditions hereinafter set forth, (i) the Stockholder hereby subscribes for, as of the date hereof, and the Company shall issue and deliver to the Stockholder, as of the date hereof, the number of shares of Restricted Stock, based on a per share grant price (the “Base Price”), in each case as set forth on the signature page hereof, and (ii) at any time and from time to time after the date hereof, the Stockholder may subscribe for, and the Company may issue and deliver to the Stockholder, a number of shares at a per share grant or purchase price, as the case may be, to be determined by the Board.

 

 

(b)   The Company shall have no obligation to issue any Restricted Stock to any person who is a resident or citizen of, or is organized under the laws of or operating in, any state or jurisdiction in which the sale or issuance of the Restricted Stock to it would constitute a violation of the securities or “blue sky” laws of such jurisdiction.

 

2.     Stockholder’s Representations, Warranties and Agreements.

 

(a)   The Stockholder agrees and acknowledges that it will not, directly or indirectly, gift, offer, transfer, sell, assign, pledge, hypothecate, encumber or otherwise dispose of, whether for or without consideration, and whether voluntary, involuntary or by operation of law (any of the foregoing acts being referred to herein as a “Transfer”) any shares of Restricted Stock except as provided in this Section 2(a) and Section 3 hereof.  If the Stockholder is an Affiliate of the Company, the Stockholder also agrees and acknowledges that it will not Transfer any shares of Restricted Stock unless:

 

(i)  the Transfer is pursuant to an effective registration statement under the Securities Act of 1933, as amended, and the rules and regulations in effect thereunder (the “Securities Act”), and in compliance with applicable provisions of state securities laws; or

 

(ii)  (A) counsel for the Stockholder (which counsel shall be reasonably acceptable to the Company) shall have furnished the Company with an opinion or other advice, reasonably satisfactory in form and substance to the Company, that no such registration is required because of the availability of an exemption from registration under the Securities Act and (B) if the Stockholder is organized under the laws of any country other than the United States, or the Stockholder desires to effect any Transfer in any such country, counsel for the Stockholder (which counsel shall be reasonably satisfactory to the Company) shall have furnished the Company with an opinion or other advice reasonably satisfactory in form and substance to the Company to the effect that such Transfer will comply with the securities laws of such jurisdiction.

 

Notwithstanding the foregoing, the Company acknowledges and agrees that any of the following Transfers of Stock are deemed to be in compliance with the Securities Act and this Agreement (including without limitation any restrictions or prohibitions herein) and no opinion of counsel is required in connection therewith: (I) (a) Transfers permitted by Section 5; (b) Transfers permitted by clauses (II) or (III) of Section 2(a); (c) a sale of shares of Stock pursuant to an effective registration statement under the Securities Act filed by the Company upon the proper exercise of registration rights of such Stockholder under Section 8 (excluding any registration on Form S-8, S-4 or any successor or similar form); (d) Transfers permitted pursuant to the Sale Participation Agreement (as defined in Section 6(b)); or (e) Transfers permitted by the Board (any such exception, a “Permitted Transfer”); (II) a Transfer made pursuant to Sections 4 or 8 hereof, (III) a Transfer (x) upon the death or disability of the Stockholder to the Stockholder’s Estate or (y) to the executors, administrators, testamentary trustees, legatees, immediate family members or beneficiaries of a person who has become a holder of Stock in accordance with the terms of this Agreement; provided that it is expressly understood that any such transferee shall be bound by the provisions of this Agreement, (IV) a Transfer made in compliance with the federal securities laws to a Stockholder’s Trust; provided that such Transfer is made expressly subject to this Agreement and that the transferee agrees in writing to be bound by the terms and

 

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conditions hereof as a “Stockholder” with respect to the representations and warranties and other obligations of this Agreement; and provided further that it is expressly understood and agreed that if such Stockholder’s Trust at any point includes any person or entity other than the Stockholder, her spouse (or ex-spouse) or her lineal descendants (including adopted children) such that it fails to meet the definition thereof as set forth in Section 6(b) hereof, such Transfer shall no longer be deemed in compliance with this Agreement and shall be subject to 3(b) below, and (V) a Transfer made by the Stockholder, with the Board’s approval, to the Company or any subsidiary of the Company.

 

(b)   The certificate (or certificates) representing the Restricted Stock, if any, shall bear the following legend:

 

“THE SHARES REPRESENTED BY THIS CERTIFICATE MAY NOT BE TRANSFERRED, SOLD, ASSIGNED, PLEDGED, HYPOTHECATED OR OTHERWISE DISPOSED OF UNLESS SUCH TRANSFER, SALE, ASSIGNMENT, PLEDGE, HYPOTHECATION OR OTHER DISPOSITION COMPLIES WITH THE PROVISIONS OF THE STOCKHOLDER’S AGREEMENT AMONG LAUREATE EDUCATION, INC. (THE “COMPANY”), THE STOCKHOLDER NAMED ON THE FACE HEREOF AND THE OTHER PARTIES HERETO OR THE SALE PARTICIPATION AGREEMENT BETWEEN SUCH STOCKHOLDER AND WENGEN ALBERTA, LIMITED PARTNERSHIP, (COPIES OF WHICH ARE ON FILE WITH THE SECRETARY OF THE COMPANY) AND ALL APPLICABLE FEDERAL AND STATE SECURITIES LAWS.”

 

(c)   The Stockholder acknowledges that it has been advised that (i) the shares of Restricted Stock are characterized as “restricted securities” under the Securities Act inasmuch as they are being acquired from the Company in a transaction not involving a Public Offering and that under the Securities Act (including applicable regulations) the Restricted Stock may be resold without registration under the Securities Act only in certain limited circumstances, (ii) a restrictive legend in the form heretofore set forth shall be placed on the certificates (if any) representing the Restricted Stock and (iii) a notation shall be made in the appropriate records of the Company indicating that the Restricted Stock is subject to restrictions on transfer and appropriate stop transfer restrictions will be issued to the Company’s transfer agent with respect to the Restricted Stock.

 

(d)   If any shares of Restricted Stock are to be disposed of in accordance with Rule 144 under the Securities Act or otherwise, the Stockholder shall promptly notify the Company of such intended disposition and shall deliver to the Company at or prior to the time of such disposition such documentation as the Company may reasonably request in connection with such sale and take any actions requested by the Coordination Committee prior to any such sale (provided that such instructions shall not have a disproportionate adverse impact on any Stockholder vis-à-vis any other stockholders of the Company or limited partners of Parent) and, in the case of a disposition pursuant to Rule 144, shall deliver to the Company an executed copy of any notice on Form 144 required to be filed with the SEC.

 

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(e)   The Stockholder agrees that, if any shares of Restricted Stock are offered to the public pursuant to an effective registration statement under the Securities Act (other than registration of securities issued on Form S-8, S-4 or any successor or similar form), the Stockholder will not effect any public sale or distribution of any shares of Restricted Stock not covered by such registration statement from the time of the receipt of a notice from the Company that the Company has filed or imminently intends to file such registration statement to, or within 180 days after the effective date of such registration statement (except if the underwriters shall require a longer period, but in any event no more than 270 days), unless otherwise agreed to in writing by the Company.

 

(f)    The Stockholder represents and warrants that (i) with respect to Restricted Stock, the Stockholder has received and reviewed the available information relating to the Restricted Stock, including having received and reviewed the documents related thereto, and (ii) the Stockholder has been given the opportunity to obtain any additional information or documents and to ask questions and receive answers about such information, the Company and the business and prospects of the Company which the Stockholder deems necessary to evaluate the merits and risks related to the Stockholder’s investment in, or election to receive, Restricted Stock and to verify the information contained in the information received as indicated in this Section 2(f), and the Stockholder has relied solely on such information.

 

(g)   The Stockholder further represents and warrants that (i) the Stockholder’s financial condition is such that the Stockholder can afford to bear the economic risk of holding Restricted Stock for an indefinite period of time and has adequate means for providing for the Stockholder’s current needs and personal contingencies, (ii) the Stockholder can afford to suffer a complete loss of his or her investment in the Restricted Stock, (iii) the Stockholder understands and has taken cognizance of all risk factors related to the purchase of, or election to receive, Restricted Stock, (iv) the Stockholder’s knowledge and experience in financial and business matters are such that the Stockholder is capable of evaluating the merits and risks of the Stockholder’s purchase of, or election to receive, Restricted Stock as contemplated by this Agreement, (v) with respect to Restricted Stock, such Restricted Stock is being acquired by the Stockholder for his or her own account, not as nominee or agent, and not with a view to the resale or distribution of any part thereof in violation of the Securities Act, and the Stockholder has no present intention of selling or otherwise distributing Restricted Stock in violation of the Securities Act, and (vi) the Stockholder is an “accredited investor” as defined in Rule 501(a) of Regulation D, as amended, under the Securities Act.

 

3.     Transferability of Restricted Stock.

 

(a)   The Stockholder agrees that during the period commencing on the effective date of this Agreement and prior to the consummation of the Initial Public Offering, the Stockholder may only Transfer such shares of Restricted Stock in compliance with Section 4.

 

(b)   No Transfer of any such Stock in violation hereof shall be made or recorded on the books of the Company and any such Transfer shall be void ab initio and of no effect.

 

(c)   Notwithstanding anything to the contrary herein, Parent may, at any time and from time to time, waive the restrictions on Transfers contained in Section 3(a), whether such

 

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waiver is made prior to or after the transferee has effected or committed to effect the Transfer, or has notified the Investors of such Transfer or commitment to Transfer.  Any Transfers made pursuant to such waiver or which are later made subject to such a waiver shall, as of the date of the waiver and at all times thereafter, not be deemed to violate any applicable restrictions on Transfers contained in this Agreement.

 

4.           Right of First Refusal.

 

(a)   If, at any time after the effective date of this Agreement and prior to the earlier to occur of a Change of Control or consummation of the Initial Public Offering, the Stockholder proposes to Transfer any or all of the Stockholder’s Restricted Stock, to the extent permitted by the Restricted Stock Agreement and as permitted by this Agreement, to a third party (any proposal a “Proposed Sale” and any such third party, the “ROFR Transferee”) (other than any Transfer (i) pursuant to clauses (III), (IV) or (V) of Section 2(a), to the extent made to a third party, (ii) pursuant to a Permitted Transfer of the type described in clauses (a), (c) or (d) thereof or (iii) to a limited partner of Parent or an Affiliate of such limited partner, and otherwise in accordance with this Agreement), the Stockholder (the “Selling Stockholder”) shall notify the Company in writing of the Stockholder’s intention to Transfer such Restricted Stock (such written notice, a “ROFR Notice”).  The ROFR Notice shall include a true and correct description of the number of shares of Restricted Stock to be Transferred and the material terms of such proposed Transfer and a copy of any proposed documentation to be entered into with any ROFR Transferee in respect of such Transfer and shall contain an irrevocable offer to sell such Restricted Stock to the Company (in the manner set forth below) at a purchase price equal to the price contained in, and on the same terms and conditions of, the ROFR Notice.

 

(b)   The Company and/or any subsidiary, third party or Affiliate designated by the Company, at any time within ten (10) Business Days after the date of the receipt by the Company of the ROFR Notice, shall have the right and option to purchase any Stock covered by the ROFR Notice at the minimum price at which the Stockholder proposes to Transfer such Stock to any ROFR Transferee and otherwise on the same terms and conditions of the Proposed Sale (or, if the Proposed Sale includes any consideration other than cash, then, at the sole option of such purchaser, at the equivalent all cash price, determined in good faith by the Company taking into account the value of the property), by delivering a certified bank check or checks in the appropriate amount (or by wire transfer of immediately available funds, if the Selling Stockholder provides wire transfer instructions) and any such non-cash consideration to be paid to the Selling Stockholder at the principal office of the Company against delivery of certificates or other instruments representing the Stock so purchased, appropriately endorsed by the Selling Stockholder.  If at the end of the ten (10) Business Day period, the Company has not exercised the right to purchase all of the Stock covered by the ROFR Notice in the manner set forth above, the Selling Stockholder may, during the succeeding 30-day period, sell not less than all of the Stock covered by the Proposed Sale to the ROFR Transferee in the Proposed Sale on terms no less favorable to the Selling Stockholder than those contained in the ROFR Notice.  Promptly after such sale, the Selling Stockholder shall notify the Company of the consummation thereof and shall furnish such evidence of the completion and time of completion of such sale and of the terms thereof as may reasonably be requested by the Company.  If, at the end of such 30 day period, the Selling Stockholder has not completed the sale of such Stock as aforesaid, all of the

 

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restrictions on sale, Transfer or assignment contained in this Agreement shall again be in effect with respect to such Stock.

 

5.                                          The Company’s Option to Purchase Restricted Stock of the Stockholder Upon Occurrence of a Change Event.

 

(a)   Termination of Right to Appoint a Director or Observer; Transfers in Violation of this Agreement.  In the event (i) the Stockholder (or its applicable Affiliate(s) that is a party to the Securityholder’s Agreement as the case may be) no longer has the right to appoint a director or an observer to the Board pursuant to Sections 5.1 and 5.2 of the Securityholder’s Agreement or (ii) the Stockholder effects a transfer of Restricted Stock that is prohibited under this Agreement, after notice from the Company of such impermissible transfer and a reasonable opportunity to cure such transfer which is not so cured (any such event, a “Change Event”), then:

 

(x)   With respect to a Change Event set forth in Section 5(a)(i) above, the Company may purchase all or any portion of the shares of Restricted Stock then held by the Stockholder at a per share purchase price equal to the Fair Market Value on the Repurchase Calculation Date; or

 

(y)   With respect to a Change Event set forth in Section 5(a)(ii) above, the Company may purchase all or any portion of the shares of Restricted Stock then held by the Stockholder at a per share purchase price equal to the lesser of (x) the Base Price and (y) the Fair Market Value on the Repurchase Calculation Date.

 

(b)   Call Notice.  The Company shall have a period (the “Call Period”) of one hundred eighty (180) days from the date of the Change Event (or, with respect to an impermissible Transfer constituting a Change Event as set forth in Section 5(a)(ii) above, the date after discovery of, and the applicable cure period for, such impermissible Transfer), in which to give notice in writing to the Stockholder of its election to exercise its rights and obligations pursuant to this Section 5 (the “Repurchase Notice”).  The completion of the purchases pursuant to the foregoing shall take place at the principal office of the Company no later than the fifteenth Business Day (such date to be determined by the Company) after the giving of the Repurchase Notice.  The Repurchase Price shall be paid by delivery to the Stockholder, at the option of the Company, of a certified bank check or checks in the appropriate amount payable to the order of the Stockholder (or by wire transfer of immediately available funds, if the Stockholder provides to the Company wire transfer instructions) against delivery of certificates or other instruments representing the Restricted Stock so purchased, in each case, appropriately endorsed or executed by the Stockholder or any duly authorized representative.

 

(c)   Use of Note to Satisfy Call Payment.  Notwithstanding anything in this Section 5 to the contrary, (i) if there exists and is continuing a default or an event of default on the part of the Company or any subsidiary of the Company under any loan, guarantee or other agreement under which the Company or any subsidiary of the Company has borrowed money, (ii) the repurchase referred to in Section 5(a) would result in a default or an event of default on the part of the Company or any Affiliate of the Company under any such agreement referred to in clause (i), (iii) the Board determines in good faith that the repurchase referred to in Section 5(a) would cause significant harm to the short term liquidity needs of the Company, (iv) all or

 

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any portion of the proceeds required to effect the repurchase referred to in Section 5(a) are not available for borrowing by the Company under any such agreement referenced in clause (i) or (v) a repurchase referred to in Section 5(a) would reasonably be expected to be prohibited by under the Maryland General Corporation Law (“MGCL”) or any federal or state securities laws or regulations (or if the Company reincorporates in another state, the business corporation law of such state) (each such occurrence being an “Event”), the Company will, to the extent it has exercised its rights to purchase Restricted Stock pursuant to this Section 5, in order to complete the purchase of any Restricted Stock pursuant to this Section 5, deliver to the Stockholder (A) a cash payment for any amounts payable pursuant to this Section 5 that would not cause an Event and (B) a note with a principal amount equal to the amount payable under this Section 5 that was not paid in cash, having terms acceptable to the Company’s (and its Affiliates’, as applicable) lenders and permitted under the Company’s (and its Affiliates’, as applicable) debt instruments but which in any event (x) shall be mandatorily repayable promptly and to the extent that an Event no longer prohibits the payment of cash to the Stockholder pursuant to this Agreement; and (y) shall bear interest at a rate equal to the effective rate of interest in respect of the Company’s (and its Affiliates’, as applicable) U.S. dollar-denominated subordinated public debt securities (including any original issue discount); provided, that if no such subordinated public debt securities are outstanding, interest shall be at a rate selected by the Board in good faith.  Notwithstanding the foregoing, if an Event exists and is continuing for ninety (90) days from the date of the Change Event, the Stockholder shall be permitted by written notice to cause the Company to rescind any Repurchase Notice with respect to that portion of the Restricted Stock repurchased by the Company from the Stockholder pursuant to this Section 5 with the note described in the foregoing sentence; provided that, upon such rescission, such repurchase shall be immediately rescinded and such note shall be immediately canceled without any action on the part of the Company or the Stockholder and, notwithstanding anything herein or in such note to the contrary, the Company shall have no obligation to pay any amounts of principal or interest thereunder; provided, further that the Company shall have another thirty (30) days from the date the Event ceases to exist to give another Repurchase Notice on the terms applicable to the first Repurchase Notice.

 

(d)   Effect of Accounting Principles.  Notwithstanding anything set forth in Section 5 to the contrary, in the event that it is determined by the Board that any of the provisions of Section 5 would result in any of the Restricted Stock being classified as a liability as contemplated by FASB Statement No. 123, Share-Based Payment, including any amendments and interpretations thereto, then any shares of Restricted Stock that are to be purchased by the Company pursuant to Section 5 may only be so purchased if and when such shares have been held by the Stockholder for at least six months.

 

(e)   Effect of Change in Control.  Notwithstanding anything in this Agreement to the contrary, except for any payment obligation of the Company which has arisen prior to the occurrence of a Change in Control, this Section 5 shall terminate and be of no further force or effect upon the occurrence of such Change in Control.

 

6.     Adjustment of Repurchase Price; Definitions.

 

(a)   Adjustment of Repurchase Price.  In determining the Repurchase Price, appropriate adjustments shall be made for any stock dividends, splits, combinations,

 

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recapitalizations or any other adjustment in the number of outstanding shares of Restricted Stock in order to maintain, as nearly as practicable, the intended operation of the provisions of Section 5.

 

(b)   Definitions.  Terms used herein and as listed below shall be defined as follows:

 

“Affiliate” shall mean, with respect to any Person, any Person directly or indirectly controlling, controlled by, or under common control with such Person.  For purposes hereof, “control” or any other form thereof, when used with respect to any Person, means the power to direct the management and policies of such Person, directly or indirectly, whether through the ownership of voting securities, by contract or otherwise.

 

“Agreement” shall have the meaning set forth in the introductory paragraph.

 

“Base Price” shall have the meaning set forth in Section 1(a) hereof.

 

“Board” shall have the meaning set forth in the recitals.

 

“Business Day” means any day other than a Saturday, a Sunday, or a holiday on which national banking associations in the State of New York are authorized by law to close.

 

“Call Period” shall have the meaning set forth in Section 5(b) hereof.

 

“Change Event” shall have the meaning set forth in Section 5(a) hereof.

 

“Change in Control” shall mean (a) the first to occur of any of the following: (i) the sale of all or substantially all of the assets of Parent or the Company, as applicable, to a Person or (ii) a sale by Parent, any Securityholder (as defined in the Securityholders Agreement), or any of their respective Affiliates, to a Person that results in more than 50% of the total equity interests of Parent or of the Company, as applicable, being held by a Person, which may include any Securityholder or any of their respective Affiliates; provided, however, that in no event shall any relationship among any Securityholder created by the occurrence of the consummation of the transactions contemplated by the Merger (including the Securityholders Agreement and the organizational documents of Parent and its general partner) be deemed to, de facto, create a Group for purposes of this clause (a); and (b) in the case of the occurrence of an event identified in clause (a), also results in any Person that acquired more than 50% of the total equity interests of Parent,  or the Company, as applicable, having the ability to appoint a majority of the applicable board of directors.

 

“Common Stock” shall have the meaning set forth in the recitals to this Agreement.

 

“Company” shall have the meaning set forth in the introductory paragraph.

 

“Confidential Information” shall mean all non-public information concerning trade secret, know-how, software, developments, inventions, processes, technology, designs, the financial data, strategic business plans or any proprietary or confidential information, documents or materials in any form or media, including any of the foregoing relating to research, operations,

 

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finances, current and proposed products and services, vendors, customers, advertising and marketing, and other non-public, proprietary, and confidential information of the Restricted Group.

 

“Coordination Committee” shall have the meaning set forth in the Securityholders Agreement.

 

“Custody Agreement and Power of Attorney” shall have the meaning set forth in Section 9(e) hereof.

 

“Representative” shall have the meaning set forth in the introductory paragraph.

 

“Event” shall have the meaning set forth in Section 5(c) hereof.

 

“Exchange Act” shall mean the Securities Exchange Act of 1934, as amended (or any successor section thereto).

 

“Fair Market Value” shall mean on a per share basis, (i) if there is a public market for the shares of Common Stock on such date, the average of the high and low closing bid prices of the shares on such stock exchange on which the shares are principally trading on the applicable date, or, if there were no sales on such date, on the closest preceding date on which there were sales of shares, or (ii) if there is no public market for the shares on such date, the fair market value of the shares as determined in good faith by the Board, which determination shall take into account an appraisal of the fair market value of the shares conducted by Duff & Phelps (or such other nationally recognized appraisal firm as the Board may select), which appraisal shall be conducted at least annually.

 

“General Partner” shall mean Wengen Investments Limited.

 

“Group” shall mean “group,” as such term is used for purposes of Section 13(d) or 14(d) of the Exchange Act.

 

“Holders” shall have the meaning set forth in Section 8(d) hereof.

 

“Initial Public Offering” means the initial firm commitment underwritten offering of Common Stock to the public pursuant to an effective registration statement (other than Form S-4 or Form S-8 or any similar or successor form) filed under the Securities Act or any comparable law or regulatory scheme of any foreign jurisdiction.

 

“Investors” shall mean the Persons listed in Appendix 2 of the Partnership Agreement, and each other Person who, in accordance with the terms of the Partnership Agreement, hereafter executes a separate agreement to be bound by the terms thereof and is added to such appendix (a list of such Investors as the date hereof is also listed in Schedule I attached hereto).

 

“Merger” shall mean the merger. pursuant to the Merger Agreement, of Merger Sub with and into the Company on August 17, 2007.

 

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“Merger Agreement” shall mean the Amended and Restated Agreement and Plan of Merger, dated as of June 3, 2007, by and among Parent, Merger Sub and the Company.

 

“Merger Sub” shall mean L Curve Sub Inc., a Maryland corporation and a direct subsidiary of Parent.

 

“MGCL” shall have the meaning set forth in Section 5(c) hereof.

 

“Parent” shall have the meaning set forth in the introductory paragraph.

 

“Parties” shall have the meaning set forth in the introductory paragraph.

 

“Partnership Agreement” shall mean the Amended and Restated Limited Partnership Agreement of Wengen Alberta, Limited Partnership, dated as of July 11, 2007, as it may be amended, modified, restated or supplemented from time to time.

 

“Permitted Transfer” shall have the meaning set forth in Section 2(a) hereof.

 

“Person” shall mean an individual, a partnership, a joint venture, a corporation, an association, a joint stock company, a limited liability company, a trust, an unincorporated organization or a government or any department or agency or political subdivision thereof, or any group consisting of one or more of the foregoing.

 

“Piggyback Notice” shall have the meaning set forth in Section 8(b) hereof.

 

“Piggyback Registration Rights” shall have the meaning set forth in Section 8(a) hereof.

 

“Proposed Registration” shall have the meaning set forth in Section 8(b) hereof.

 

“Proposed Sale” shall have the meaning set forth in Section 4(a).

 

“Public Offering” shall mean the sale of Common Stock to the public pursuant to an effective Registration Statement (other than Form S-4 or Form S-8 or any similar or successor form) filed under the Securities Act or any comparable law or regulatory scheme of any foreign jurisdiction.

 

“Registrable Securities” shall have the meaning set forth in Section 8(a) hereof.

 

“Registration Rights Agreement” shall mean the Registration Rights Agreement, dated as of July 11, 2007, by and among Parent, the General Partner and each of the parties thereto, as it may be amended, modified, restated or supplemented from time to time.

 

“Repurchase Calculation Date” shall mean the date on which a repurchase occurs.

 

“Repurchase Notice” shall have the meaning set forth in Section 5(b) hereof.

 

“Repurchase Price” shall mean the amount to be paid in respect of Restricted Stock to be purchased by the Company pursuant to Section 5.

 

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“Request” shall have the meaning set forth in Section 8(b) hereof.

 

“Restricted Stock” shall have the meaning set forth in the recitals to this Agreement.

 

“Restricted Group” shall mean, collectively, the Company, its subsidiaries, the Investors and their respective Affiliates.

 

“ROFR Notice” shall have the meaning set forth in Section 4(a) hereof.

 

“ROFR Transferee” shall have the meaning set forth in Section 4(a) hereof.

 

“Sale Participation Agreement” shall mean that certain sale participation agreement entered into by and between the Stockholder and Parent dated as of the date hereof, as it may be amended, modified, restated or supplemented from time to time.

 

“SEC” shall mean the Securities and Exchange Commission.

 

“Securityholders Agreement” shall mean that certain Securityholders Agreement dated July 11, 2007, among Parent, the General Partner, Douglas L. Becker and the other parties appearing on the signature pages thereto, as it may be amended, modified, restated or supplemented from time to time.

 

“Securities Act” shall have the meaning set forth in Section 2(a)(i) hereof.

 

“Selling Stockholder” shall have the meaning set forth in Section 4(a) hereof.

 

“Stockholder” shall have the meaning set forth in the introductory paragraph.

 

“Transfer” shall have the meaning set forth in Section 2(a) hereof.

 

7.     The Company’s Representations and Warranties and Covenants.

 

(a)   The Company represents and warrants to the Stockholder that (i) this Agreement has been duly authorized, executed and delivered by the Company and is enforceable against the Company in accordance with its terms and (ii) the Restricted Stock, when issued and delivered in accordance with the terms hereof and the other agreements contemplated hereby, will be duly and validly issued, fully paid and nonassessable.

 

(b)   If the Company becomes subject to the reporting requirements of Section 12 of the Exchange Act, the Company will file the reports required to be filed by it under the Securities Act and the Exchange Act and the rules and regulations adopted by the SEC thereunder, to the extent required from time to time to enable the Stockholder to sell shares of Restricted Stock, subject to compliance with the provisions hereof (including requirements of the Coordination Committee) without registration under the Exchange Act within the limitations of the exemptions provided by (A) Rule 144 under the Securities Act, as such rule may be amended from time to time, or (B) any similar rule or regulation hereafter adopted by the SEC.  Notwithstanding anything contained in this Section 7(b), the Company may de-register under Section 12 of the Exchange Act if it is then permitted to do so pursuant to the Exchange Act and

 

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the rules and regulations thereunder and, in such circumstances, shall not be required hereby to file any reports which may be necessary in order for Rule 144 or any similar rule or regulation under the Securities Act to be available.  Nothing in this Section 7(b) shall be deemed to limit in any manner the restrictions on Transfers of Restricted Stock contained in this Agreement.

 

8.     “Piggyback” Registration Rights.  Effective after the occurrence of the Initial Public Offering:

 

(a)   The Parties agree to be bound, with respect to the Stockholders who are provided such rights pursuant to this Section 8, by all of the terms, conditions and obligations of the Registration Rights Agreement (including, without limitation, with respect to obligations as to indemnification and/or contribution) as they relate to the exercise of piggyback registration rights as provided in Sections 4, 6, 7, 8 and 11 of the Registration Rights Agreement (the “Piggyback Registration Rights”), as in effect on the date hereof (subject, with respect to any such Stockholder provided Piggyback Registration Rights, to any amendments thereto to which such Stockholder has agreed to be bound or which are effected in accordance with the terms thereof), and, if any of the Investors are directly or indirectly selling stock or having stock sold on their behalf, shall have all of the rights and privileges of the Piggyback Registration Rights (including, without limitation, any rights to indemnification and/or contribution from the Company and/or the Investors), in each case as if the Stockholder were an original party (other than the Company) to the Registration Rights Agreement, subject to applicable and customary underwriter restrictions; provided, however, for the avoidance of doubt, that at no time shall the Stockholder have any rights to request registration under Section 3 of the Registration Rights Agreement.  Following the Initial Public Offering, all Restricted Stock purchased or held by the applicable Stockholder pursuant to this Agreement shall be deemed to be “Registrable Securities” as defined in the Registration Rights Agreement.

 

(b)   In the event of a sale of Common Stock by any of the Investors in accordance with the terms of the Registration Rights Agreement, the Company will promptly notify each Stockholder, in writing (a “Piggyback Notice”) of any proposed registration (a “Proposed Registration”), which Piggyback Notice shall include: the principal terms and conditions of the proposed registration, including (A) the number of shares of Common Stock to be sold, (B) the fraction, expressed as a percentage, determined by dividing the number of shares of Common Stock to be sold by the holders of Registrable Securities by the total number of shares of Common Stock held by the holders of Registrable Securities selling shares of Common Stock, (C) the proposed per share purchase price (or an estimate thereof), and (D) the proposed date of sale.  If within fifteen (15) days of the receipt by the Stockholder of such Piggyback Notice, the Company receives from the applicable Stockholder a written request (a “Request”) to register shares of Restricted Stock held by the Stockholder (which Request will be irrevocable unless otherwise mutually agreed to in writing by the Stockholder and the Company), shares of such Restricted Stock will be so registered as provided in this Section 8; provided, however, that for each such registration statement only one Request, which shall be executed by the Stockholder, may be submitted for all Registrable Securities held by the Stockholder.

 

(c)   The maximum number of shares of Restricted Stock which will be registered pursuant to a Request will be the lowest of (i) the number of shares of Restricted Stock then held by the Stockholder, multiplied by a fraction, the numerator of which is the aggregate number of

 

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shares of Common Stock being sold by holders of Registrable Securities and the denominator of which is the aggregate number of shares of Common Stock owned by the holders of Registrable Securities or (ii) the maximum number of shares of Common Stock which the Company can register in connection with such Request in the Proposed Registration without adverse effect on the offering in the view of the managing underwriters (reduced pro rata as more fully described in subsection (d) of this Section 8 or (iii) the maximum number of shares of Restricted Stock which the Stockholder (pro rata based upon the aggregate number of shares of such Restricted Stock the Stockholders have requested to be registered) is permitted to register under the Piggyback Registration Rights, in any event subject to reduction as provided in subsection (d) of Section 8.

 

(d)   If a Proposed Registration involves an underwritten offering and the managing underwriter advises the Company in writing that, in its opinion, the number of shares of Common Stock requested to be included in the Proposed Registration exceeds the number which can be sold in such offering, so as to be likely to have an adverse effect on the price, timing or distribution of the shares of Restricted Stock offered in such Public Offering as contemplated by the Company, then, unless the managing underwriter advises that marketing factors require a different allocation, the number of shares of Restricted Stock which the Stockholder will be entitled to include will be reduced in accordance with Section 3 or 4 of the Registration Rights Agreement, as applicable, which the Company will include in the Proposed Registration (i) first, 100% of the shares of Common Stock the Company proposes to sell and (ii) second, to the extent of the number of shares of Common Stock requested to be included in such registration which, in the opinion of such managing underwriter, can be sold without having the adverse effect referred to above, the number of shares of Common Stock which the selling holders of Registrable Securities, the Stockholder and any other Persons who are entitled to piggyback or incidental registration rights in respect of Common Stock (together, the “Holders”) have requested to be included in the Proposed Registration, such amount to be allocated pro rata among all requesting Holders on the basis of the relative number of shares of Common Stock or other Registrable Securities then held by each such Holder (including upon exercise of all exercisable options to purchase shares of Common Stock) (provided that any shares thereby allocated to any such Holder that exceed such Holder’s request will be reallocated among the remaining requesting Holders in like manner).

 

(e)   Upon delivering a Request a Stockholder having Piggyback Registration Rights pursuant to clause (b) of this Section 8 will, if requested by the Company, execute and deliver a custody agreement and power of attorney having customary terms and in form and substance reasonably satisfactory to the Company with respect to the shares of Restricted Stock to be registered pursuant to this Section 8 (a “Custody Agreement and Power of Attorney”).  The Custody Agreement and Power of Attorney will provide, among other things, that the Stockholder will deliver to and deposit in custody with the custodian and attorney-in-fact named therein a certificate or certificates (to the extent applicable) representing such shares of Restricted Stock (duly endorsed in blank by the registered owner or owners thereof or accompanied by duly executed stock powers in blank) and irrevocably appoint said custodian and attorney-in-fact as the Stockholder’s agent and attorney-in-fact with full power and authority to act under the Custody Agreement and Power of Attorney on the Stockholder’s behalf with respect to the matters specified therein.

 

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(f)    The Stockholder agrees that it will execute such other agreements as the Company may reasonably request to further evidence the provisions of this Section 8, including reasonable and customary lock-up agreements.

 

(g)   Notwithstanding Section 11(l) of the Registration Rights Agreement, this Section 8 will terminate on the earlier of (i) the occurrence of a Change in Control and (ii) with respect to each Stockholder, on the date on which such Stockholder ceases to own any Registrable Securities.

 

9.           Rights to Negotiate Repurchase Price.  Nothing in this Agreement shall be deemed to restrict or prohibit the Company from purchasing, redeeming or otherwise acquiring for value shares of Restricted Stock from the Stockholder, at any time, upon such terms and conditions, and for such price, as may be mutually agreed upon in writing between the Parties, whether or not at the time of such purchase, redemption or acquisition circumstances exist which specifically grant the Company the right to purchase, or the Stockholder the right to sell, shares of Restricted Stock under the terms of this Agreement; provided that no such purchase, redemption or acquisition shall be consummated, and no agreement with respect to any such purchase, redemption or acquisition shall be entered into, without the prior approval of Parent.

 

10.         Recapitalizations, etc.  The provisions of this Agreement shall apply, to the full extent set forth herein with respect to Restricted Stock, to any and all shares of capital stock of the Company or any capital stock, partnership units or any other security evidencing ownership interests in any successor or assign of the Company (whether by merger, consolidation, sale of assets or otherwise) which may be issued in respect of, in exchange for, or substitution of the Restricted Stock by reason of any stock dividend, split, reverse split, combination, recapitalization, liquidation, reclassification, merger, consolidation or otherwise.

 

11.         Binding Effect.  The provisions of this Agreement shall be binding upon and accrue to the benefit of the Parties hereto and their respective heirs, legal representatives, successors and assigns.  In the case of a transferee permitted under Section 2(a) or Section 3(a) (other than clauses (ii) or (iii) thereof) hereof, such transferee shall be deemed the Stockholder hereunder; provided, however, that no transferee (including without limitation, transferees referred to in Section 2(a) or Section 3(a) hereof) shall derive any rights under this Agreement unless and until such transferee has delivered to the Company a valid undertaking and becomes bound by the terms of this Agreement.  No provision of this Agreement is intended to or shall confer upon any Person other than the Parties any rights or remedies hereunder or with respect hereto.

 

12.         Amendment.  This Agreement may be amended by the Company at any time upon notice to the Stockholder thereof; provided that any amendment (i) that materially disadvantages the Stockholder shall not be effective unless and until the Stockholder has consented thereto in writing and (ii) that disadvantages a class of stockholders in more than a de minimis way but less than a material way shall require the consent of a majority of the equity interests held by such affected class of stockholders.

 

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13.         Closing.  Except as otherwise provided herein, the closing of each purchase and sale of shares of Restricted Stock pursuant to this Agreement shall take place at the principal office of the Company on the tenth Business Day following delivery of the notice by either Party to the other of its exercise of the right to purchase or sell such Restricted Stock hereunder.

 

14.  Applicable Law; Jurisdiction; Arbitration; Legal Fees.

 

(a)   The laws of the State of Maryland applicable to contracts executed and to be performed entirely in such state shall govern the interpretation, validity and performance of the terms of this Agreement.

 

(b)   In the event of any controversy among the parties hereto arising out of, or relating to, this Agreement which cannot be settled amicably by the parties, such controversy shall be finally, exclusively and conclusively settled by mandatory arbitration conducted expeditiously in accordance with the American Arbitration Association rules by a single independent arbitrator.  Such arbitration process shall take place in Baltimore, Maryland.  The decision of the arbitrator shall be final and binding upon all parties hereto and shall be rendered pursuant to a written decision, which contains a detailed recital of the arbitrator’s reasoning.  Judgment upon the award rendered may be entered in any court having jurisdiction thereof.

 

(c)   Notwithstanding the foregoing, the Stockholder acknowledges and agrees that the Company, its subsidiaries, the Investors and any of their respective Affiliates shall be entitled to injunctive or other relief in order to enforce the confidentiality covenants as set forth in Section 20 of this Agreement.

 

(d)   In the event of any arbitration or other disputes with regard to this Agreement or any other document or agreement referred to herein, each Party shall pay its own legal fees and expenses, unless otherwise determined by the arbitrator.

 

15.         Assignability of Certain Rights by the Company.  The Company shall have the right to assign any or all of its rights or obligations to purchase shares of Restricted Stock pursuant to Sections 4 and 5 hereof.

 

16.  Miscellaneous.

 

(a)   In this Agreement all references to “dollars” or “$” are to United States dollars and the masculine pronoun shall include the feminine and neuter, and the singular the plural, where the context so indicates.

 

(b)   If any provision of this Agreement shall be declared illegal, void or unenforceable by any court of competent jurisdiction, the other provisions shall not be affected, but shall remain in full force and effect.

 

17.         Withholding.  The Company or its subsidiaries shall have the right to deduct from any cash payment made under this Agreement to the Stockholder any federal, state or local income or other taxes required by law to be withheld with respect to such payment, if applicable.

 

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18.         Acknowledgement by Representative Regarding Taxes. The Representative acknowledges that the shares of Restricted Stock being delivered to the Stockholder in respect of Fees payable to the Representative are related to compensation due to Representative and that, accordingly, the Representative may be required to pay federal, state or local income or other taxes with respect to such shares of Restricted Stock.

 

19.         Notices.  All notices, consents, payments, demands and other communications required or permitted for herein shall be in writing and sent by electronic mail (if an address is provided for notice pursuant to this provision) and shall be (a) delivered personally to the Person or to an officer of the Person to whom the same is directed, or (b) sent by electronic mail, facsimile, overnight courier or registered or certified mail, return receipt requested, postage prepaid.  Any notice or other communication hereunder shall be deemed duly delivered, given and received for all purposes as of:  (i) the date so delivered, if delivered personally; (ii) upon receipt, if sent by electronic mail, facsimile or overnight courier; or (iii) on the date of receipt or refusal indicated on the return receipt, if sent by registered or certified mail, return receipt requested, postage and charges prepaid and properly addressed. All communications shall be sent to such party’s address as set forth below or at such other address or to such other person as the party shall have furnished to each other party in writing in accordance with this provision:

 

(a)   If to the Company, to it at the following address:

 

Laureate Education, Inc.
 650 S. Exeter Street

Baltimore, MD  21202-4382
 Attention:  General Counsel
 Telecopy:  [         ]

 

with copies to:

 

Wengen Alberta, Limited Partnership

9 West 57th Street, Suite 4200

New York, NY 10019

Attention:  [           ]

Telecopy:  [           ]

 

and

 

Simpson Thacher & Bartlett LLP
 425 Lexington Avenue
 New York, New York 10017
 Attention:  [           ]

Telecopy:  [           ]

 

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(b)   If to the Stockholder, to the Stockholder at the address set forth below under the Stockholder’s signature; or at such other address as either party shall have specified by notice in writing to the other.

 

20.  Confidential Information.

 

(a)   In consideration of the Company entering into this Agreement with the Stockholder, without the Company’s prior written consent, the Stockholder shall not, directly or indirectly, at any time, disclose or use any Confidential Information pertaining to the business of the Company or any of its subsidiaries or the Investors or any of their respective Affiliates, except when required by law or judicial process.  If the Stockholder is bound by any other agreement with the Company regarding the use or disclosure of Confidential Information, the provisions of this Agreement shall be read in such a way as to further restrict and not to permit any more extensive use or disclosure of Confidential Information.

 

(b)   Notwithstanding clause (a) above, if at any time a court holds that the restrictions stated in such clause (a) are unreasonable or otherwise unenforceable under circumstances then existing, the Parties hereto agree that the maximum period, scope or geographic area determined to be reasonable under such circumstances by such court will be substituted for the stated period, scope or area.  Because the Stockholder has had access to Confidential Information, the Parties hereto agree that money damages will be an inadequate remedy for any breach of this Agreement.  In the event of a breach or threatened breach of this Agreement, the Company or its successors or assigns may, in addition to other rights and remedies existing in their favor, apply to any court of competent jurisdiction for specific performance and/or injunctive relief in order to enforce, or prevent any violations of, the provisions hereof (without the posting of a bond or other security).

 

(c)           In the event that the Stockholder breaches any of the provisions of Section 20(a), in addition to all other remedies that may be available to the Company, the Stockholder shall be required to pay to the Company any amounts actually paid to it by the Company in respect of any repurchase by the Company of any Restricted Stock held by such Stockholder.

 

21.         Irrevocable Proxy.  In accordance with Section 2-507(d) of the MGCL, the Stockholder hereby irrevocably appoints Parent and any authorized representatives and designees thereof as its lawful proxy and attorney-in-fact to exercise with full power in the Stockholder’s name and on its behalf the Stockholder’s right to vote (or execute a written consent) all of the shares of outstanding Common Stock owned by the Stockholder at any regular or special meeting of the stockholders of the Company or in connection with a written consent in lieu of a regular or special meeting of the stockholders of the Company.  Parent and any authorized representatives and designees thereof shall vote (or execute a consent) under this proxy on behalf of each such Stockholder in the same manner as Parent votes (or executes a consent) any outstanding shares of Common Stock owned by it at any such regular or special meeting of the stockholders of the Company or in connection with a written consent in lieu of a regular or special meeting of the stockholders of the Company.   This proxy is irrevocable and is coupled with an interest and shall not be terminable as long as this Agreement remains effective among the parties hereto, their successors, transferees and assigns and, if such Stockholder is a natural

 

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person, shall not terminate on the disability or incompetence of such Stockholder.  The Company is hereby requested and directed to honor this proxy upon its presentation by Parent and any authorized representatives and designees thereof, without any duty of investigation whatsoever on the part of the Company. The Stockholder agrees that the Company, and the Company’s secretary shall not be liable to the Stockholder for so honoring this proxy.

 

[Signatures on next page.]

 

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IN WITNESS WHEREOF, the Parties have executed this Agreement as of the date first above written.

 

	
 
    	
LAUREATE   EDUCATION, INC.
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
By:
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
Name:
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
Title:
    	
 
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
WENGEN   ALBERTA, LIMITED PARTNERSHIP
    
	
 
    	
 
    
	
 
    	
By:   Wengen Investments Limited, its General Partner
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
By:
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
Name:
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
Title:
    	
 
    
	
 
    	
 
    
	
 
    	
 
    
	
Acknowledged   and Accepted By:
    	
 
    
	
 
    	
 
    
	
By:
    	
 
    	
 
    
	
 
    	
 
    
	
Name:
    	
 
    
	
 
    	
 
    
	
Title:   Director
    	
 
    
				

 

 

	
 
    	
[                                   ]
    
	
 
    	
 
    
	
 
    	
By:
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
Name:
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
Title:
    	
 
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
ADDRESS:
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
o The above-signed represents that it is an   “accredited investor” as defined in Rule 501(a) of Regulation D, as   amended, under the Act.

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