Document:

Document

Exhibit 10.4

EMPLOYEE MATTERS AGREEMENT
dated as of February 1, 2021
between
SAP SE
and
QUALTRICS INTERNATIONAL INC.

Table of Contents
						
	Article I DEFINITIONS
	1

	Section 1.1    Definitions
	1

	Article II GENERAL PRINCIPLES
	4

	Section 2.1    Assumption and Retention of Liabilities
	4

	Section 2.2    Qualtrics-Aligned Employees
	4

	Section 2.3    Relocations
	5

	Section 2.4    Comparability
	5

	Article III EMPLOYEE BENEFIT PLANS
	5

	Section 3.1    Benefits Transfer
	5

	Section 3.2    Eligibility at Qualtrics
	6

	Section 3.3    Qualtrics 401(k) Plan
	6

	Section 3.4    Terms of Participation in Benefit Plans
	7

	Section 3.5    HXM Systems
	7

	Section 3.6    Vacation and PTO
	7

	Article IV INCENTIVE AND EQUITY COMPENSATION MATTERS
	7

	Section 4.1    Exchange of Outstanding Awards at the IPO Date
	7

	Section 4.2    Treatment of Equity-Based Incentive Awards
	8

	Section 4.3    Short-Term Incentive Compensation
	9

	Article V Non-Qualified deferred compensation matters
	9

	Section 5.1    General
	9

	Article VI COSTS
	9

	Section 6.1    Fees
	9

	Section 6.2    Indemnification
	9

	Article VII LEASING AND BENEFITS SERVICES
	10

	Section 7.1    Leasing Period
	10

	Section 7.2    Compensation/Payroll
	10

	Section 7.3    Plans
	11

	Section 7.4    Personnel Policies
	11

	Section 7.5    Leased Employees
	12

	Article VIII CERTAIN NON-U.S. JURISDICTION MATTERS
	12

	Section 8.1    Works Council Arrangements
	12

	Article IX GENERAL AND ADMINISTRATIVE
	13

	Section 9.1    Personnel Records
	13

	Section 9.2    Confidentiality and Proprietary Information
	13

	Section 9.3    No Termination of Plans or Plan Amendments
	13

	Section 9.4    Fiduciary Matters
	13

	Section 9.5    Consent of Third Parties
	13

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	Section 9.6    Cooperation
	14

	Section 9.7    Termination
	14

	Article X MISCELLANEOUS
	14

	Section 10.1    No Agency
	14

	Section 10.2    Entire Agreement
	14

	Section 10.3    Information
	14

	Section 10.4    Notices
	15

	Section 10.5    Governing Law
	15

	Section 10.6    Consent to Jurisdiction
	16

	Section 10.7    Waiver of Jury Trial
	16

	Section 10.8    Amendment
	16

	Section 10.9    Counterparts
	16

	Section 10.10   Binding Effect; Assignment
	16

	Section 10.11   Severability
	17

	Section 10.12   Failure or Indulgence not Waiver; Remedies Cumulative
	17

	Section 10.13   Authority
	17

	Section 10.14   Interpretation
	17

	Section 10.15   Third Party Beneficiaries
	18

	Section 10.16   Limitation of Liability
	18

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Exhibit 10.[__]

EMPLOYEE MATTERS AGREEMENT
This Employee Matters Agreement is dated as of the 1st day of February 2021, between SAP SE, a European Company (Societas Europaea), registered in accordance with the corporate laws of Germany and the European Union (“SAP”), and Qualtrics International Inc., a Delaware corporation (“Qualtrics”, with each of SAP and Qualtrics a “Party,” and together, the “Parties”). Capitalized terms used herein and not otherwise defined shall have the meanings ascribed to such terms in Article I hereof.

RECITALS
WHEREAS, SAP is the indirect beneficial owner of all the issued and outstanding Class B common stock of Qualtrics;
WHEREAS, SAP, through Qualtrics, is engaged in the business of providing a technology platform for experience management, as more completely described in a Registration Statement on Form S-1 (File No. 333-251767) filed with the Securities and Exchange Commission (“Commission”) under the Securities Act (the “IPO Registration Statement”);
WHEREAS, SAP and Qualtrics currently contemplate that Qualtrics will make an initial public offering (“IPO”) of its Class A common stock pursuant to the IPO Registration Statement; and
WHEREAS, the Parties intend in this Agreement to set forth the principal arrangements between SAP and Qualtrics regarding the allocation between them of assets, liabilities, and responsibilities with respect to certain employees and employee compensation and benefit plans, programs and matters from and after the filing of the IPO Registration Statement and the consummation of the IPO.
NOW, THEREFORE, in consideration of the foregoing and the terms, conditions, covenants and provisions of this Agreement, SAP and Qualtrics mutually covenant and agree as follows: 
Article I.
DEFINITIONS
Section i.Definitions
.  As used in this Agreement, the following terms shall have the following meanings, applicable both to the singular and the plural forms of the terms described:
“Administrative Services Agreement” means the Administrative Services Agreement between the Parties of even date herewith.
“Agreement” means this Employee Matters Agreement, together with the Schedules hereto, as the same may be amended and supplemented from time to time in accordance with the provisions hereof.

“Benefit Plans” means all benefit plans, including any welfare plans, medical, dental, and vision plans, life insurance plans, cafeteria plans, retirement, and other deferred compensation plans.
“Benefits Commencement Date” means:  (i) for each Qualtrics-Aligned Employee, the Employment Commencement Date; and (ii) for each U.S. and AU Qualtrics Employee, a date that is mutually agreed between the Parties but that is no later than January 1, 2022; provided, that if Qualtrics is unable to meet this deadline notwithstanding its reasonable best efforts, the deadline shall automatically be extended by six months.
“Class A common stock” means the Class A common stock, par value $0.0001 per share, of Qualtrics.
“Class B common stock” means the Class B common stock, par value $0.0001 per share, of Qualtrics.
 “Code” means the U.S. Internal Revenue Code of 1986, as amended from time to time, or any successor federal income tax law, and the regulations promulgated thereunder.
“Common Stock” means the Class A common stock and Class B common stock of Qualtrics.
“Employment Commencement Date” means the date that each Qualtrics-Aligned Employee becomes a Qualtrics Employee in accordance with Section 2.2 of this Agreement.
“ERISA” means the U.S. Employee Retirement Income Security Act of 1974, as amended from time to time, and the regulations promulgated thereunder.
“HR Liabilities” means all Liabilities arising out of, by reason of, or otherwise in connection with, the employment of, and/or the termination of the employment of, any employee.
“HXM Systems” means human capital management systems in relation to Qualtrics Employees and Qualtrics-Aligned Employees; provided, that HXM Systems, including related implementation services, shall be administered through SuccessFactors and/or any other SAP-owned systems, as applicable, wherever such capabilities are available.
“Intercompany Agreement” has the meaning set forth in the Master Transaction Agreement.
“IPO Date” means the date on which the IPO is consummated.
“Labor Agreement” means any agreement with any Works Council that pertains to any Qualtrics Employees, Transferring Employees and/or Qualtrics-Aligned Employees.
“Liabilities” has the meaning set forth in the Master Transaction Agreement.
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“Losses” has the meaning set forth in the Administrative Services Agreement.
“Master Transaction Agreement” means the Master Transaction Agreement between the Parties of even date herewith.
“Person” has the meaning set forth in the Master Transaction Agreement.
“Qualtrics 401(k) Plan” means the U.S. defined contribution retirement savings plan that Qualtrics will establish in accordance with Section 3.3(a) hereof.
“Qualtrics-Aligned Employees” means employees who provide services as if they are full-time Qualtrics Employees but who are employed by SAP entities. The Qualtrics-Aligned Employees as of January 14, 2021 are set forth on Schedule A hereto, which schedule shall be updated at the IPO Date.
“Qualtrics Business” means the business presently conducted by Qualtrics, as more completely described in the IPO Registration Statement, or following the IPO Date, such business that is then conducted by Qualtrics and described in its periodic filings with the Commission.
“Qualtrics Employee” means any individual who, immediately prior to the IPO, is either actively employed by or then on a leave of absence from a Qualtrics Entity.
“Qualtrics Entities” means Qualtrics and its Subsidiaries and any entity which becomes a Subsidiary of Qualtrics after the date hereof.
“Qualtrics Indemnified Person” has the meaning set forth in the Administrative Services Agreement.
“Qualtrics Plan” means any Benefit Plan sponsored or maintained by a Qualtrics Entity.
“SAP 401(k) Plan” means the SAP America, Inc. 401(k) Plan.
“SAP Employee” means any individual who, as of the IPO Date, is either actively employed by or then on a leave of absence from an SAP Entity but does not include any Qualtrics Employee.
“SAP Entities” means SAP SE and its Subsidiaries (other than the Qualtrics Entities) and any entity which becomes a Subsidiary of SAP SE after the date hereof (other than a Qualtrics Entity).
“SAP Indemnified Person” has the meaning set forth in the Administrative Services Agreement.
“SAP Plan” means any Benefit Plan sponsored or maintained by an SAP Entity.
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“Securities Act” means the Securities Act of 1933, as amended.
“Subsidiary” has the meaning set forth in the Master Transaction Agreement.
“Taxes” has the meaning set forth in the Master Transaction Agreement. 
“Transferring Employee” means any Qualtrics-Aligned Employee who is transferred to a Qualtrics Entity in accordance with Section 2.2 of this Agreement. 
“U.S. and AU Qualtrics Employees” means each Qualtrics Employee whose primary workplace is in the United States or Australia immediately prior to the IPO.
“Works Council” means any union, works council, or other similar agency or representative body certified or otherwise recognized for the purposes of bargaining collectively or established for the purposes of notification of or consultation on behalf of any employee.
Article II.
GENERAL PRINCIPLES
Section i.Assumption and Retention of Liabilities
.  
(1)General.  Except to the extent otherwise required by applicable law or otherwise provided in this Agreement, Qualtrics shall or shall cause another Qualtrics Entity, as applicable, to retain or assume, as the case may be, all HR Liabilities in respect of Qualtrics Employees and Qualtrics-Aligned Employees, regardless of when such HR Liabilities arise. For the avoidance of doubt, Qualtrics Entities shall not be responsible for HR Liabilities in respect of SAP Employees.
(2)HR Compliance.  The Qualtrics Entities, and, as applicable all services provided by the Qualtrics Entities, shall be subject to Qualtrics HR compliance policies, as in effect from time to time and applicable to any Qualtrics Entity (the “Qualtrics HR Policies”). To the extent that Qualtrics’ human resources (“HR”) department is not involved at the outset of any HR matter relating to any Qualtrics Employee or Qualtrics-Aligned Employee, SAP shall promptly involve Qualtrics’ HR department. Upon such involvement, Qualtrics shall be responsible for all HR matters relating to any Qualtrics Employee and SAP and Qualtrics shall coordinate with respect to all HR matters relating to any Qualtrics-Aligned Employee. Unless otherwise agreed between the Parties, SAP’s Head of HR Compliance or his or her delegate and Qualtrics’ Managing Counsel for Employment Matters or his or her delegate shall be responsible for coordinating all such efforts. Qualtrics shall reimburse SAP for any HR Liabilities incurred by SAP or any SAP Entity (including all attorneys’, accountants’, consultants’ and other professionals’ fees and expenses) in connection with any actual, reported or suspected breach by Qualtrics of any Qualtrics HR Policies.
Section ii.Qualtrics-Aligned Employees
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.  
(1)No later than the IPO Date, Qualtrics shall ensure that each Qualtrics-Aligned Employee who is designated as a pre-IPO transfer on Schedule A hereto becomes a Qualtrics Employee; provided, that if Qualtrics is unable to meet this deadline notwithstanding its reasonable best efforts, the deadline shall automatically be extended by six months.
(2)Qualtrics shall ensure that all Qualtrics-Aligned Employees other than those described in Section 2.2(a) are transferred to a Qualtrics Entity on or as soon as reasonably possible following the IPO Date but no later than January 1, 2022; provided, that if Qualtrics is unable to meet this deadline notwithstanding its reasonable best efforts, the deadline shall automatically be extended by six months and provided further, however, that with respect to any Qualtrics-Aligned Employee who does not transfer on or prior to the IPO Date, such Qualtrics-Aligned Employee shall continue providing services to Qualtrics pursuant to the terms of the leasing arrangement set forth in Article VII of this Agreement until such time as Qualtrics implements a suitable alternative arrangement.
(3)As of the date hereof, Qualtrics shall not:  (i) hire any additional Qualtrics-Aligned Employee without the prior written consent of SAP, including in jurisdictions where Qualtrics-Aligned Employees are not already engaged, except as previously approved as set forth on Schedule B of this Agreement; or (ii) inform any Qualtrics-Aligned Employee of his or her termination of employment without providing SAP with notice of any such termination of employment in accordance with the applicable local SAP payroll cutoff dates; provided, that such notice shall not be required in the event of a termination for “cause.”
(4)SAP and Qualtrics agree to cooperate in good faith to effectuate the transfers of employment contemplated by this Section 2.2.
Section iii.Relocations
.  Qualtrics shall continue to administer and be responsible for all applicable relocation and expatriate programs to which Qualtrics Employees and, following the Employment Commencement Date, Transferring Employees are subject. Qualtrics and SAP shall cooperate as necessary to transfer any visas of Transferring Employees from SAP to Qualtrics.
Section iv.Comparability
.  Except as otherwise provided in this Agreement or as required by applicable law or Labor Agreement, neither Qualtrics nor SAP shall have any obligation to provide any particular level of compensation or benefits following the IPO.
Article III.
EMPLOYEE BENEFIT PLANS
Section i.Benefits Transfer
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.  Effective as of the Benefits Commencement Date, U.S. and AU Qualtrics Employees and Transferring Employees shall cease to participate in and accrue benefits under the SAP Plans, except that the U.S. and AU Qualtrics Employees and the Transferring Employees shall continue participation in the SAP Plans to the extent required by applicable law, the terms of the SAP Plans or as otherwise provided in this Article III. SAP shall satisfy all Liabilities under the SAP Plans relating to the U.S. and AU Qualtrics Employees and the Transferring Employees, at Qualtrics’ cost, as determined under the Administrative Services Agreement. Except as otherwise provided in this Article III or as required by any applicable law, Labor Agreement or plan provisions, Qualtrics shall use reasonable best efforts to cause any Qualtrics Plan in which any U.S. and AU Qualtrics Employee or any Transferring Employee, as applicable, becomes a participant to recognize, without duplication, such U.S. and AU Qualtrics Employee’s or Transferring Employee’s years of service with any SAP Entity prior to the Benefits Commencement Date to the same extent that service is recognized for Qualtrics Employees who transfer between Qualtrics Entities under any Qualtrics Plans, for purposes of eligibility, vesting and benefit accruals under such Qualtrics Plan. 
Section ii.Eligibility at Qualtrics
.  Qualtrics shall take all actions reasonably required to cause all U.S. and AU Qualtrics Employees and Transferring Employees, including all dependents of such employees, to be eligible for coverage under the Qualtrics Plans that provide group health, prescription drug, dental, dependent life, accidental death and dismemberment, flexible spending accounts, vision insurance and similar type welfare benefits effective immediately as of the Benefits Commencement Date or as soon as practicable thereafter; provided, that the Benefits Commencement Date may be different with respect to each individual Qualtrics Plan.  Qualtrics shall use reasonable best efforts to cause such U.S. and AU Qualtrics Employees and Transferring Employees and their dependents to have any pre-existing condition limitations, eligibility waiting periods, evidence of insurability and required physical examinations waived with respect to all the Qualtrics Plans (to the extent the same was waived under the comparable SAP Plan prior to the Benefits Commencement Date).
Section iii.Qualtrics 401(k) Plan
.
(1)Qualtrics International Inc. 401(k) Savings Plan and Trust.  Qualtrics shall adopt a defined contribution savings plan qualified under Section 401(a) of the Code and establish a related trust exempt from taxation under Section 501(a) of the Code no later than January 1, 2022 (the effective date of such plan to be the “Implementation Date”); provided, that if Qualtrics is unable to meet this deadline notwithstanding its reasonable best efforts, the deadline shall automatically be extended by six months.  Until the Implementation Date, all eligible Qualtrics Employees and Transferring Employees shall continue to be entitled to participate in the SAP 401(k) Plan on the same terms and conditions as in effect immediately prior to the IPO Date and any eligible employees hired by a Qualtrics Entity in the United States after the IPO Date but prior to the Implementation Date shall be permitted to participate in the 
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SAP 401(k) Plan in a manner consistent with all other eligible Qualtrics Employees and in accordance with the terms thereof.
(2)Assumption of Liabilities and Transfer of Assets.  SAP and Qualtrics shall use reasonable best efforts to cause, in the manner described herein, the accounts under the SAP 401(k) Plan of each eligible Qualtrics Employee and each eligible Transferring Employee to be transferred to the Qualtrics 401(k) Plan as soon as practicable after the Implementation Date.  As soon as practicable after the Implementation Date:  (i) SAP shall cause the accounts (including any outstanding loan balances) of each eligible current Qualtrics Employee and Transferring Employee in the SAP 401(k) Plan to be transferred to the Qualtrics 401(k) Plan and its related trust in kind based on the investment election of the individual participant or, in the absence of an investment election, the plan’s default investment election (in each case, to the extent possible, without negative tax consequences to the applicable employee), in accordance with Sections 401(a)(12), 411(d)(6) and 414(l) of the Code; (ii) Qualtrics (or any successor Qualtrics Entity) and the Qualtrics 401(k) Plan shall assume and be solely responsible for all Liabilities under the Qualtrics 401(k) Plan relating to the accounts that are so transferred arising at or after the time of such transfer; and (iii) Qualtrics shall cause such transferred accounts to be accepted by the Qualtrics 401(k) Plan and its related trust and shall cause the Qualtrics 401(k) Plan to satisfy all protected benefit requirements under the Code and applicable law with respect to the transferred accounts.  In determining whether a Qualtrics Employee is vested in his or her account under the Qualtrics 401(k) Plan, if applicable, the Qualtrics 401(k) Plan shall credit each Qualtrics Employee with at least the individual’s service credited under the SAP 401(k) Plan; provided, however, that in no event shall Qualtrics be required to provide any service or any other benefit-affecting credits to any individual to the extent that the provision of such credits would result in any duplication of benefits.  Immediately prior to the date upon which the transfer described above occurs, SAP shall contribute to the SAP 401(k) Plan all matching contributions, if any, due to Qualtrics Employees pursuant to the terms and conditions of such plan for periods prior to the transfer date.  Notwithstanding anything contained herein to the contrary, the transfer described herein shall not take place prior to the 31st day following the filing of any required Forms 5310-A in connection therewith.
Section iv.Terms of Participation in Benefit Plans
.  Except to the extent otherwise provided herein, SAP and Qualtrics shall adopt, or shall cause to be adopted, all reasonable and necessary plan amendments to prevent the IPO from constituting a termination of employment of any Qualtrics Employee, Transferring Employee or Qualtrics-Aligned Employee for purposes of triggering a distribution under any SAP Plan or any Qualtrics Plan.
Section v.HXM Systems
.  Following the IPO Date and no later than January 1, 2022, Qualtrics shall establish HXM Systems (including payroll systems where applicable) for all Qualtrics Employees and Transferring Employees, at Qualtrics’ cost, which shall be as determined in accordance with the Administrative Services Agreement for any costs associated with HXM Systems that are administered through SAP.  SAP shall cooperate with Qualtrics to migrate all 
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applicable data onto Qualtrics’ HXM Systems as needed to complete such process as soon as reasonably practicable thereafter. Until such time as the Qualtrics HXM Systems are established, SAP shall facilitate Qualtrics’ continued use of SAP HXM Systems for all Qualtrics Employees and Transferring Employees. For the avoidance of doubt, all Qualtrics-Aligned Employees shall remain on SAP’s HXM Systems until such time that they become Transferring Employees.
Section vi.Vacation and PTO
.  With respect to Qualtrics Employees other than U.S. and AU Qualtrics Employees, Qualtrics shall retain all Liabilities for all accrued and unused vacation and paid time off (“PTO”) as of the IPO Date.  With respect to Transferring Employees, Qualtrics-Aligned Employees, and U.S. and AU Qualtrics Employees, SAP shall continue to satisfy on Qualtrics’ behalf all accrued and unused vacation and PTO for the period after the IPO until the Employment Commencement Date or Benefits Commencement Date, as applicable.  Only where required by applicable local law or SAP Plan provisions, SAP shall pay out all accrued and unused vacation benefits or PTO determined as of immediately prior to the Employment Commencement Date, to each Transferring Employee entitled to such benefits, at Qualtrics’ cost, as determined under the Administrative Services Agreement.
Article IV.

INCENTIVE AND EQUITY COMPENSATION MATTERS
Section i.Exchange of Outstanding Awards at the IPO Date
.  Subject to local law limitations, Qualtrics shall offer Qualtrics Employees, Transferring Employees and Qualtrics-Aligned Employees the opportunity to exchange their currently unvested equity-based compensation awards, which include Qualtrics Rights and SAP RSUs (both terms as defined in the IPO Registration Statement, and together, the “Existing Awards”), that vest on or after February 1, 2021 (or such other date as the Parties may agree in writing) into equity-based compensation awards of Qualtrics (the “Exchanged Awards”); provided, that the Parties may exclude any Qualtrics Employees, Transferring Employees or Qualtrics-Aligned Employees from exchanging their awards in such manner if doing so would be inadvisable or impractical.  The Exchanged Awards shall retain the same vesting and payment schedule as the Existing Awards but shall otherwise be governed by the terms and conditions of the 2021 Qualtrics Employee Omnibus Equity Plan (the “2021 Plan”).  All Existing Awards held by Qualtrics Employees, Transferring Employees and Qualtrics-Aligned Employees that do not become Exchanged Awards (the “Unexchanged Awards”) shall continue subject to their existing terms and conditions, at Qualtrics’ cost (which cost, for the avoidance of doubt, shall constitute HR Liabilities), with administrative charges, as applicable, determined under the Administrative Services Agreement.  As of the IPO, Qualtrics shall retain or assume, as applicable, the responsibility of administering the Unexchanged Awards in accordance with their original terms and conditions, and SAP shall provide Qualtrics with all applicable information as needed for Qualtrics to administer the Unexchanged Awards.  
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Section ii.Treatment of Equity-Based Incentive Awards
.
(1)SAP Equity-Based Incentive Award Plans.  As of the IPO Date, Qualtrics Employees, Transferring Employees and Qualtrics-Aligned Employees shall no longer be eligible to participate in any equity-based incentive award plans administered by SAP, including the Move SAP Plan, Grow SAP Plan, Own SAP Plan and Own SAP Virtual Plan (together with any other equity-based incentive award plans administered by SAP, the “SAP Award Plans”); provided, that the Qualtrics-Aligned Employees shall remain eligible to participate in the Own SAP Plan and Own SAP Virtual Plan, as applicable, until the Employment Commencement Date, unless otherwise agreed in writing between the Parties.  Prior to the IPO Date, SAP shall take all actions necessary or appropriate to cause all Qualtrics Employees, Transferring Employees and Qualtrics-Aligned Employees to cease to be eligible to participate in any SAP Award Plans, except that SAP shall not take any action to cause the Qualtrics-Aligned Employees to cease to be eligible to participate in the Own SAP Plan or Own SAP Virtual Plan.  To the extent applicable, any cash balance pursuant to an SAP Award Plan and in the account of any Qualtrics Employee, Transferring Employee or Qualtrics-Aligned Employee shall be administered in accordance with the terms of the applicable plan, including that the account of any Qualtrics Employee, Transferring Employee or Qualtrics-Aligned Employee administered under the Own SAP Plan or the Own SAP Virtual Plan shall be treated as if such employee has ceased employment with any Qualtrics Entity or SAP Entity, as applicable, in accordance with the terms of the applicable plan. 
(2)Approval of Plans.  Prior to the IPO Date, Qualtrics shall adopt (i) the 2021 Plan and (ii) the 2021 Qualtrics Employee Stock Purchase Plan (the “ESPP”), and each plan shall be approved by Qualtrics’ sole stockholder.  Subject to local law limitations and unless inadvisable or impractical, all Qualtrics Employees, Transferring Employees and Qualtrics-Aligned Employees shall become eligible to participate in the 2021 Plan and all Qualtrics Employees and Transferring Employees who transfer prior to the IPO Date shall become eligible to participate in the ESPP, in each case, immediately as of the IPO Date.  All other Transferring Employees and Qualtrics-Aligned Employees shall become eligible to participate in the ESPP as of the applicable Employment Commencement Date or as soon as is reasonably practicable thereafter.
(3)Registration Requirements.  As soon as practicable following the IPO Date, Qualtrics agrees that it shall cause to be registered pursuant to the Securities Act of 1933, as amended, all shares of Qualtrics common stock authorized for issuance under the 2021 Plan and the ESPP.  SAP shall cooperate with Qualtrics in completing and maintaining any such registration statements and related disclosures.
Section iii.Short-Term Incentive Compensation
.  Short-term incentive compensation and commission payments earned or accrued by any Qualtrics Employee or Qualtrics-Aligned Employee for the fiscal year 2020 and beyond shall be Liabilities of Qualtrics pursuant to the terms and conditions of the applicable short-term 
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incentive compensation plan or policy.  Following the IPO, Qualtrics shall retain all Liabilities relating to short-term compensation and commission payments earned or accrued by all Qualtrics Employees, Transferring Employees and Qualtrics-Aligned Employees.
Article V.

Non-Qualified deferred compensation matters
Section i.General
.  There shall be no transfer among the Parties or their affiliates of assets or Liabilities in respect of nonqualified deferred compensation plans maintained by any of them or their respective subsidiaries, and any assets of the Qualtrics Employees and Qualtrics-Aligned Employees currently held in a nonqualified deferred compensation plan shall be treated in accordance with the terms of the applicable plan.  Effective as of January 1, 2021, Qualtrics Employees and Qualtrics-Aligned Employees shall no longer be eligible to participate in SAP Plans that are nonqualified voluntary elective deferral plans.
Article VI.

COSTS
Section i.Fees
.  In exchange for the performance of SAP’s obligations pursuant to this Agreement, Qualtrics shall reimburse SAP for all HR Liabilities in respect of Qualtrics Employees, Transferring Employees and Qualtrics-Aligned Employees in accordance with Article III of the Administrative Services Agreement. 
Section ii.Indemnification
.
(1)Qualtrics agrees to indemnify and hold harmless each SAP Indemnified Person from and against any Losses arising out of or related to any claim, action or proceeding (collectively, “Actions”) by a third party to the extent arising out of or in connection with (i) services rendered or to be rendered by any Qualtrics Indemnified Person pursuant to this Agreement or the transactions contemplated hereby or (ii) any Qualtrics Indemnified Person’s actions or inactions in connection with this Agreement or such transactions; provided, that Qualtrics shall not be responsible for any damages incurred by any SAP Indemnified Person that have resulted from any SAP Entity’s, or any such SAP Indemnified Person’s, gross negligence or willful misconduct in connection with the services rendered or to be rendered pursuant to this Agreement.
(2)SAP agrees to indemnify and hold harmless each Qualtrics Indemnified Person from and against any Losses arising out of or related to any Action by a third party to the 
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extent arising out of or in connection with (i) services rendered or to be rendered by any SAP Indemnified Person pursuant to this Agreement or the transactions contemplated hereby or (ii) any SAP Indemnified Person’s actions or inactions in connection with this Agreement or such transactions; provided, that SAP shall not be responsible for any damages incurred by any Qualtrics Indemnified Person that have resulted from any Qualtrics Entity’s, or any such Qualtrics Indemnified Person’s, gross negligence or willful misconduct in connection with the services rendered or to be rendered pursuant to this Agreement.
Article VII.

LEASING AND BENEFITS SERVICES
Section i.Leasing Period
.  During the period from the IPO through the end of the day immediately prior to the Employment Commencement Date for Qualtrics-Aligned Employees (the “Leasing Period”), SAP shall continue to employ the Qualtrics-Aligned Employees and to make the Qualtrics-Aligned Employees available to any Qualtrics Entity (without any requirement to provide any additional compensation or benefits to such Qualtrics-Aligned Employees that will not be reimbursed pursuant to this Agreement), to perform such lawful tasks as the applicable Qualtrics Entity may direct in connection with the Qualtrics Business, subject to applicable law and the terms of any applicable employee policies of SAP (the “Leased Services”).  During the Leasing Period:  (i) SAP agrees that it shall not terminate the employment of any Qualtrics-Aligned Employee without the prior written consent of Qualtrics, which shall not be unreasonably withheld or delayed in the event of grounds constituting “cause” under any SAP Plan, or any SAP policy, practice or applicable law; and (ii) SAP shall instruct in writing the leased Qualtrics-Aligned Employees to (a) maintain the confidentiality of any confidential or trade secret information of Qualtrics and (b) comply with all other applicable employment policies of SAP, and SAP shall report promptly to Qualtrics any suspected failure of the leased Qualtrics-Aligned Employees to follow such instruction.  For the avoidance of doubt, a decision by SAP to terminate the employment of any Qualtrics-Aligned Employee pursuant to this Section 7.1 shall in no way modify Qualtrics’ obligations under this Agreement, including, without limitation, Article VI.  Notwithstanding the foregoing, if any Qualtrics-Aligned Employee shall be terminated by SAP and re-hired by Qualtrics in connection with such employee’s transfer of employment to Qualtrics, SAP shall terminate the applicable Qualtrics-Aligned Employee as of 11:59 pm of the day immediately prior to such employee’s Employment Commencement Date.
Section ii.Compensation/Payroll
.  During the Leasing Period and, for U.S. and AU Qualtrics Employees, the period from the IPO through the day immediately prior to the Benefits Commencement Date (which such period, for U.S. and AU Qualtrics Employees, shall be the “Benefits Services Period”), as applicable, SAP shall be responsible for (i) paying and shall pay to or on behalf of each Qualtrics-Aligned Employee or U.S. and AU Qualtrics Employee, as applicable, all wages, salaries, bonuses, severance, paid leave, including paid vacation, and other compensation earned, vested, due, accrued for payment, or payable under the applicable plan, policy or program 
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(collectively, “Compensation”), (ii) deducting all employment and other Taxes, withholdings and other legally required deductions (such as in the nature of social security payments or judicially ordered deductions), (iii) paying all Taxes on or with respect to such Compensation as may be required of an employer, (iv) maintaining, contributing to or paying (as applicable) unemployment insurance, unemployment compensation, workers’ compensation, disability, retirement contributions, and any other insurance and fringe benefits with respect to the Qualtrics-Aligned Employee or U.S. and AU Qualtrics Employee, as applicable, and (v) any reporting, disclosure and withholding obligations in connection therewith.  During the Leasing Period and the Benefits Services Period, as applicable, SAP shall not, unless otherwise instructed by Qualtrics to do so in writing, change the terms of employment or compensation of any Qualtrics-Aligned Employee or U.S. and AU Qualtrics Employee, grant any bonuses, whether monetary or otherwise, or increase in any wages, salary, severance, pension, equity award or other compensation or benefits in respect of any Qualtrics-Aligned Employee or U.S. and AU Qualtrics Employee, as applicable, or adopt or enter into any Labor Agreement affecting the Qualtrics-Aligned Employee or U.S. and AU Qualtrics Employee, as applicable, other than as required by applicable law.  With respect to the Qualtrics-Aligned Employees or U.S. and AU Qualtrics Employees during the Leasing Period or the Benefits Services Period, as applicable, Qualtrics shall not be obligated to pay any Compensation to the Qualtrics-Aligned Employees or U.S. and AU Qualtrics Employees directly, nor shall Qualtrics be responsible for paying directly to any governmental agency any Taxes, withholdings, or other legally required deductions (such as social security payments due), or for reporting to disclosure obligations in connection therewith with respect to the Qualtrics-Aligned Employee or U.S. and AU Qualtrics Employees.  Nothing herein shall be interpreted as limiting the obligations of Qualtrics to make payments to SAP in respect of these Liabilities pursuant to the Administrative Services Agreement.
Section iii.Plans
.  During the Leasing Period and the Benefits Services Period, as applicable, the Qualtrics-Aligned Employees and U.S. and AU Qualtrics Employees shall remain eligible for or participate in the same SAP Plans in which such Qualtrics-Aligned Employees or U.S. and AU Qualtrics Employees were eligible or participating as of immediately prior to the IPO, subject to their elections in any such SAP Plans in the ordinary course of business for any plan year thereafter, subject to the terms and limitations of such SAP Plans (including without limitation, regarding eligibility and participation), and the right of SAP to modify, cancel, amend or terminate any such SAP Plan in its sole and absolute discretion, but subject to this Agreement and only to the extent such modification, cancellation, amendment or termination is done with respect to all similarly situated participants under such SAP Plan.  Wherever required by applicable local law or SAP Plan provisions, SAP will pay out all accrued and unused vacation to U.S. and AU Qualtrics Employees as soon as reasonably practicable or required after the Benefits Commencement Date, at Qualtrics’ cost, as determined under the Administrative Services Agreement.  Notwithstanding the foregoing, participation in the SAP 401(k) Plan and the Qualtrics 401(k) Plan for eligible Qualtrics Employees and eligible Transferring Employees shall be determined in accordance with Section 3.3(a) of this Agreement.
Section iv.Personnel Policies
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.  Except as specified herein or as required by applicable law, all terms and conditions of employment applicable to the Qualtrics-Aligned Employees shall at all times during the Leasing Period be governed by the personnel policies and practices generally applicable to similarly situated SAP Employees, as such policies and practices may be amended from time to time during the Leasing Period.  Notwithstanding the foregoing, nothing contained herein shall be interpreted as limiting the obligations of Qualtrics to cause compliance with all employee-related policies as set forth in the Master Transaction Agreement.
Section v.Leased Employees
.  The Qualtrics-Aligned Employees shall at all times during the Leasing Period remain SAP Employees, and no Qualtrics-Aligned Employees shall be deemed for any purpose to be an agent, servant or employee of any Qualtrics Entity during the Leasing Period.  Subject to applicable data privacy and protection and employment laws, SAP shall respond to all questions and inquiries from Qualtrics, state and federal agencies, and other persons regarding payroll and employment data and history relating to the Qualtrics-Aligned Employees leased under this Article VII for periods of employment with SAP.  During the Leasing Period, the Qualtrics-Aligned Employees shall not be entitled to participate in or receive any benefit or right as an employee or participant under Qualtrics’ employee benefit and welfare plans as a result of or in connection with the provision of the Leased Services, but, for the avoidance of doubt, shall be eligible to participate in equity-based incentive award programs administered by Qualtrics and SAP as set forth in Article IV.  SAP shall instruct in writing all Qualtrics-Aligned Employees providing the Leased Services to comply with, during the Leasing Period, any confidentiality obligations set forth in any written arrangement between such Qualtrics-Aligned Employee and Qualtrics.  SAP shall promptly notify Qualtrics of any breach of any such obligations by a Qualtrics-Aligned Employee.
Article VIII.
CERTAIN NON-U.S. JURISDICTION MATTERS
Section i.Works Council Arrangements
.  
(1)General.  Qualtrics Employees and Transferring Employees in the European Economic Area and Germany who are subject to SAP’s SE Works Council Europe and SAP’s German Group Works Council as of immediately prior to the IPO shall remain subject to the applicable provisions of such Works Council arrangements after the IPO until such time as is required by law.  SAP shall inform Qualtrics of, and Qualtrics shall comply with, any obligations arising from these Works Council arrangements and any other applicable Labor Agreements for the duration of time that any Qualtrics Employees or Transferring Employees remain subject to their terms.  In addition, Qualtrics-Aligned Employees who are subject to any Labor Agreement shall remain subject to such agreements after the IPO until such time as is required by law.
(2)GLR Communications.  To the extent that any Qualtrics Employees, including any Transferring Employees, are subject to any SAP Labor Agreements, whether prior 
13

to or following the IPO, Qualtrics shall coordinate all communications with the applicable Works Council through SAP’s Global Labor Relations Department (“GLR”) and Qualtrics shall not communicate directly with the applicable Works Council without the prior written consent of GLR, unless otherwise required by law.  For the avoidance of doubt, SAP and Qualtrics acknowledge that Qualtrics may be subject to Labor Agreements that are independent of SAP in certain jurisdictions and that, as of the IPO, Qualtrics shall be responsible for compliance with all such Labor Agreements and shall not be required to coordinate with GLR with respect to any such Labor Agreements, unless otherwise required by law.  
Article IX.
GENERAL AND ADMINISTRATIVE
Section i.Personnel Records
.  Qualtrics shall continue to retain all applicable employee records, data or information, and compliance-related training documents (collectively, “Employment Files”), with respect to each Qualtrics Employee, and SAP shall maintain Employment Files for each Qualtrics-Aligned Employee, in accordance with all applicable laws.  Following the IPO:  (i) to the extent applicable, SAP shall transfer copies of all applicable Employment Files with respect to each Transferring Employee and Qualtrics-Aligned Employee, to Qualtrics and (ii) the Parties shall have shared access to all applicable Employment Files with respect to each Qualtrics Employee, Transferring Employee and Qualtrics-Aligned Employee, in each case if permissible under, and as reasonably required in order to comply with, applicable law and as reasonably required in order for the Parties to perform their obligations under this Agreement.
Section ii.Confidentiality and Proprietary Information
.  No provision of this Agreement shall be deemed to release any individual for any violation of any agreement or policy pertaining to confidential or proprietary information of SAP or any of its affiliated companies or of Qualtrics or any of its affiliated companies, respectively, or otherwise relieve any individual of his or her obligations under any such agreements or policies.
Section iii.No Termination of Plans or Plan Amendments
.  Without limiting the generality of any other provisions of this Agreement:  (i) except as expressly provided in this Agreement, nothing in this Agreement shall preclude any Qualtrics Entity, at any time after the consummation of the IPO, from amending, merging, modifying, terminating, eliminating, reducing, or otherwise altering in any respect any Qualtrics Plan, any benefit under any plan or any trust, insurance policy or funding vehicle related to any Qualtrics Plan; and (ii) except as expressly provided in this Agreement, nothing in this Agreement shall preclude any SAP Entity, at any time prior to or after the consummation of the IPO, from amending, merging, modifying, terminating, eliminating, reducing, or otherwise altering in any respect any SAP Plan, any benefit under any plan or any trust, insurance policy or funding vehicle related to any SAP Plan.  In addition, no provision of this Agreement is intended, or shall be interpreted, to amend any term or condition of any Qualtrics Plan, any SAP 
14

Plan or any other employee related plan, program or policy of any Qualtrics Entity or any SAP Entity.
Section iv.Fiduciary Matters
.  SAP and Qualtrics each acknowledge that actions required to be taken pursuant to this Agreement may be subject to fiduciary duties or standards of conduct under ERISA or other applicable law, and no party shall be deemed to be in violation of this Agreement if it fails to comply with any provisions hereof based upon its good faith determination that to do so would violate such a fiduciary duty or standard.  Each party shall be responsible for taking such actions as are deemed necessary and appropriate to comply with its own fiduciary responsibilities and shall fully release the other party for any Liabilities imposed on such party pursuant to the provisions of this Agreement by the failure to satisfy any such responsibility.
Section v.Consent of Third Parties
.  If any provision of this Agreement is dependent on the consent of any third party (such as a vendor) and such consent is withheld, SAP and Qualtrics shall use commercially reasonable efforts to implement the applicable provisions of this Agreement to the full extent practicable.  If any provision of this Agreement cannot be implemented due to the failure of such third party to consent, SAP and Qualtrics shall negotiate in good faith to implement the provision in a mutually satisfactory manner.  The phrase “commercially reasonable efforts” as used herein shall not be construed to require the incurrence of any non-routine or unreasonable expense or liability or the waiver of any right.
Section vi.Cooperation
.  The Parties agree to, and to cause their affiliated companies to, cooperate and use reasonable efforts to promptly (a) comply with all requirements of this Agreement, ERISA, the Code and other laws which may be applicable to the matters addressed herein, (b) subject to applicable law, provide each other with such information reasonably requested by the other party to assist the other party in administering its plans and programs and complying with applicable law and regulations and the terms of this Agreement and (c) notwithstanding any provision of the Master Transaction Agreement to the contrary, any powers of attorney currently in effect between the Parties and necessary to facilitate the administration of payroll services set forth in this Agreement with respect to U.S. and AU Qualtrics Employees (“Existing Payroll POAs”) shall remain in effect until the date that such Existing Payroll POAs are terminated pursuant to their terms.
Section vii.Termination
.  Except as otherwise provided herein or required by the provisions hereof, this Agreement shall terminate on the first date upon which the SAP Entities hold shares of Common Stock representing less than a majority of the votes entitled to be cast by all holders of Common Stock.
15

Article X.
MISCELLANEOUS
a.No Agency
.  Nothing in this Agreement shall constitute or be deemed to constitute a partnership or joint venture by and between the Parties hereto or constitute or be deemed to constitute any Party the agent or employee of any other Party for any purpose whatsoever, and no Party shall have authority or power to bind any other Party or to contract in the name of, or create a liability against, any other Party in any way or for any purpose.
b.Entire Agreement
.  This Agreement (including the Schedules constituting a part of this Agreement) and any other writing signed by the Parties that specifically references or is specifically related to this Agreement constitute the entire agreement among the Parties with respect to the subject matter hereof and supersede all prior agreements, understandings and negotiations, both written and oral, between the Parties with respect to the subject matter hereof.
c.Information
.  Subject to applicable law and privileges, each Party covenants with and agrees to provide to the other Party all information regarding itself and transactions under this Agreement that is reasonably required by the other Party to comply with all applicable federal, state, county and local laws, ordinances, regulations and codes, including, but not limited to, securities laws and regulations.
d.Notices
.  Notices, offers, requests or other communications required or permitted to be given by any Party pursuant to the terms of this Agreement shall be given in writing to the respective Parties to the following addresses:
i.if to SAP, to:
SAP SE
Dietmar-Hopp-Allee 16
Germany – 69190
Attention:  Matthias Faust
E-mail:  

c/o SAP America, Inc.
3999 West Chester Pike
Newtown Square, PA 19073 
Attention:  Patricia Taylor
E-mail:  
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ii.if to Qualtrics, to:
Qualtrics International Inc.
333 West River Park Drive
Provo, UT 84604
Attention:  Legal Department
E-mail:  

iii.with a copy to:
Shearman & Sterling LLP
1460 El Camino Real, 2nd Floor
Menlo Park, CA 94025 
Attention:  Daniel R. Mitz
E-mail:  Daniel.Mitz@shearman.com 
or to such other address as the Party to whom notice is given may have previously furnished to the other in writing as provided herein. Any notice shall be sent by hand delivery, internationally recognized overnight courier or, within the United States, may also be sent via certified mail, return receipt requested and, in any event, shall be concurrently sent by e-mail. All notices shall be deemed to have been given when received, if hand delivered; when transmitted, if transmitted electronically; one working day after it is sent, if sent by internationally recognized overnight courier; and three days after it is postmarked, if mailed first class mail or certified mail, return receipt requested, with postage prepaid.
e.Governing Law
.  This Agreement, including the validity hereof and the rights and obligations of the Parties hereunder, shall be construed in accordance with and all disputes, controversies or claims arising out of or relating to this Agreement shall be governed by the laws of the State of Delaware applicable to contracts made and to be performed entirely in such State (without giving effect to the conflicts of laws provisions thereof).
f.Consent to Jurisdiction
.  THE PARTIES AGREE THAT JURISDICTION AND VENUE IN ANY ACTION BROUGHT BY ANY PARTY IN CONNECTION WITH THIS AGREEMENT OR THE PERFORMANCE OF THE OBLIGATIONS IMPOSED HEREUNDER SHALL PROPERLY AND EXCLUSIVELY LIE IN ANY FEDERAL OR STATE COURT LOCATED IN THE STATE OF DELAWARE.  EACH PARTY ALSO AGREES NOT TO BRING ANY ACTION IN CONNECTION WITH THIS AGREEMENT OR THE PERFORMANCE OF THE OBLIGATIONS IMPOSED HEREUNDER IN ANY OTHER COURT.  BY EXECUTION AND DELIVERY OF THIS AGREEMENT, EACH PARTY IRREVOCABLY SUBMITS TO THE JURISDICTION OF SUCH COURTS FOR ITSELF AND IN RESPECT OF ITS 
17

PROPERTY WITH RESPECT TO ANY SUCH ACTION.  THE PARTIES IRREVOCABLY AGREE THAT VENUE WOULD BE PROPER IN SUCH COURT, AND HEREBY WAIVE ANY OBJECTION THAT ANY SUCH COURT IS AN IMPROPER OR INCONVENIENT FORUM FOR THE RESOLUTION OF SUCH ACTION.  THE PARTIES FURTHER AGREE THAT THE MAILING BY CERTIFIED OR REGISTERED MAIL, RETURN RECEIPT REQUESTED, OF ANY PROCESS REQUIRED BY ANY SUCH COURT SHALL CONSTITUTE VALID AND LAWFUL SERVICE OF PROCESS AGAINST THEM, WITHOUT NECESSITY FOR SERVICE BY ANY OTHER MEANS PROVIDED BY STATUTE OR RULE OF COURT.  
g.Waiver of Jury Trial
.  EACH OF THE PARTIES ACKNOWLEDGES AND AGREES THAT ANY CONTROVERSY THAT MAY ARISE UNDER THIS AGREEMENT IS LIKELY TO INVOLVE COMPLICATED AND DIFFICULT ISSUES, AND THEREFORE EACH OF THE PARTIES HEREBY IRREVOCABLY AND UNCONDITIONALLY WAIVES ANY RIGHT SUCH PARTY MAY HAVE TO A TRIAL BY JURY IN RESPECT OF ANY LITIGATION DIRECTLY OR INDIRECTLY ARISING OUT OF OR RELATING TO THIS AGREEMENT.  EACH OF THE PARTIES CERTIFIES AND ACKNOWLEDGES THAT (A) NO REPRESENTATIVE, AGENT OR ATTORNEY OF THE OTHER COMPANY HAS REPRESENTED, EXPRESSLY OR OTHERWISE, THAT THE OTHER PARTY WOULD NOT, IN THE EVENT OF ANY LITIGATION, SEEK TO ENFORCE THE FOREGOING WAIVER, (B) EACH OF THE PARTIES UNDERSTANDS AND HAS CONSIDERED THE IMPLICATIONS OF THIS WAIVER, (C) EACH OF THE PARTIES MAKES THIS WAIVER VOLUNTARILY AND (D) EACH OF THE PARTIES HAS BEEN INDUCED TO ENTER INTO THIS AGREEMENT BY, AMONG OTHER THINGS, THE MUTUAL WAIVERS AND CERTIFICATIONS IN THIS SECTION 10.7.
h.Amendment
.  This Agreement may be amended only by an instrument in writing signed on behalf of each of the Parties. 
i.Counterparts
.  This Agreement may be executed in counterparts, each of which shall be deemed to be an original but all of which shall constitute one and the same agreement.
j.Binding Effect; Assignment
.  This Agreement shall inure to the benefit of and be binding upon the Parties and their respective legal representatives and successors.  Neither Party may assign this Agreement or any rights or obligations hereunder, without the prior written consent of the other Party, and any such assignment shall be void; provided, however, that either Party may assign this Agreement to a successor entity in conjunction with such Party’s reincorporation in another jurisdiction or into another business form.
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k.Severability
.  If any term or other provision of this Agreement or the Schedules attached hereto is determined by a court, administrative agency or arbitrator to be invalid, illegal or incapable of being enforced by any rule of law or public policy, all other conditions and provisions of this Agreement shall nevertheless remain in full force and effect so long as the economic or legal substance of the transactions contemplated hereby is not affected in any manner materially adverse to either Party.  Upon such determination that any term or other provision is invalid, illegal or incapable of being enforced, the Parties shall negotiate in good faith to modify this Agreement so as to effect the original intent of the Parties as closely as possible in an acceptable manner to the end that transactions contemplated hereby are fulfilled to the fullest extent possible.
l.Failure or Indulgence not Waiver; Remedies Cumulative
.  No failure or delay on the part of either Party in the exercise of any right hereunder shall impair such right or be construed to be a waiver of, or acquiescence in, any breach of any representation, warranty or agreement herein, nor shall any single or partial exercise of any such right preclude other or further exercise thereof or of any other right.  All rights and remedies existing under this Agreement or the Schedules attached hereto are cumulative to, and not exclusive of, any rights or remedies otherwise available.
m.Authority
.  Each of the Parties represent to the other Party that (a) it has the corporate or other requisite power and authority to execute, deliver and perform this Agreement, (b) the execution, delivery and performance of this Agreement by it have been duly authorized by all necessary corporate or other actions, (c) it has duly and validly executed and delivered this Agreement, and (d) this Agreement is its legal, valid and binding obligation, enforceable against it in accordance with its terms, subject to applicable bankruptcy, insolvency, reorganization, moratorium or other similar laws affecting creditors’ rights generally and general equity principles.
n.Interpretation
.  The headings contained in this Agreement, in any Schedule hereto and in the table of contents to this Agreement are for reference purposes only and shall not affect in any way the meaning or interpretation of this Agreement.  Any capitalized term used in any Schedule but not otherwise defined therein shall have the meaning assigned to such term in this Agreement.  When a reference is made in this Agreement to an Article or a Section or Schedule, such reference shall be to an Article or Section of, or a Schedule to, this Agreement unless otherwise indicated.  Words in the singular shall be held to include the plural and vice versa and words of one gender shall be held to include the other gender as the context requires.  The terms “hereof,” “herein” “and “herewith” and words of similar import, unless otherwise stated, shall be construed to refer to this Agreement as a whole (including all of the Schedules hereto) and not to any particular provision of this Agreement.  Any reference herein to this Agreement, unless 
19

otherwise stated, shall be construed to refer to this Agreement as amended, supplemented or otherwise modified from time to time.  The word “including” and words of similar import when used in this Agreement shall mean “including, without limitation,” unless the context otherwise requires or unless otherwise specified.  The word “or” shall not be exclusive.
o.Third Party Beneficiaries
.  None of the provisions of this Agreement shall be for the benefit of or enforceable by any third party.  No such third party shall obtain any right under any provision of this Agreement or shall by reasons of any such provision make any claim in respect of any Liability (or otherwise) against either Party.
p.Limitation of Liability
.  IN NO EVENT SHALL ANY PARTY BE LIABLE TO ANY OTHER PARTY FOR ANY SPECIAL, CONSEQUENTIAL, INDIRECT, INCIDENTAL OR PUNITIVE DAMAGES OR LOST PROFITS, HOWEVER CAUSED AND ON ANY THEORY OF LIABILITY (INCLUDING NEGLIGENCE) ARISING IN ANY WAY OUT OF THIS AGREEMENT, WHETHER OR NOT SUCH PARTY HAS BEEN ADVISED OF THE POSSIBILITY OF SUCH DAMAGES; PROVIDED, HOWEVER, THAT THE FOREGOING LIMITATIONS SHALL NOT LIMIT (A) EACH PARTY’S INDEMNIFICATION OBLIGATIONS FOR LIABILITIES AS SET FORTH IN EITHER THE MASTER TRANSACTION AGREEMENT OR ANY INTERCOMPANY AGREEMENT OR (B) EITHER PARTY’S BREACH OF ITS CONFIDENTIALITY OR DATA PROTECTION OR PRIVACY OBLIGATIONS HEREUNDER OR UNDER THE MASTER TRANSACTION AGREEMENT.

[Signature Page Follows]
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IN WITNESS WHEREOF, the Parties have caused this Employee Matters Agreement to be duly executed as of the day and year first above written and the Parties agree that this Employee Matters Agreement shall have been entered into after the execution of the Intellectual Property Matters Agreement by the Parties hereto.
SAP SE
 /s/ Luka Mucic    
Name:    Luka Mucic
Title:    Chief Financial Officer

/s/ Jochen Scholten    
Name:    Jochen Scholten
Title:    General Counsel

QUALTRICS INTERNATIONAL INC.
/s/ Chris Beckstead    
Name:    Chris Beckstead
Title:    President
[Signature Page to Employee Matters Agreement]

Schedule A
List of Qualtrics-Aligned Employees, 
as of February 1, 2021
[Omitted pursuant to Item 601(a)(5) of Regulation S-K]

Schedule B
Approved Hires – Qualtrics-Aligned Employees
[Omitted pursuant to Item 601(a)(5) of Regulation S-K]Document

Exhibit 10.5

INTELLECTUAL PROPERTY MATTERS AGREEMENT
dated as of February 1, 2021
between
SAP SE
and
QUALTRICS INTERNATIONAL INC.

TABLE OF CONTENTS
PAGE
						
		Article I
DEFINITIONS

	Section 1.1 Definitions
	1

	Section 1.2 Internal References
	5

		Article II
Licenses

	Section 2.1 License to SAP
	5

	Section 2.2 No Delivery
	6

	Section 2.3 Sublicensing Rights
	6

	Section 2.4 Assignment
	6

	Section 2.5 Bankruptcy Code Designation
	6

		Article III
COVENANT NOT TO SUE

	Section 3.1 SAP Covenant
	6

	Section 3.2 No Assignment
	7

		Article IV
COVENANTS; RESPONSIBILITIES OF THE PARTIES

	Section 4.1 Sale of Intellectual Property Rights
	7

	Section 4.2 Ownership; Responsibility for Intellectual Property Rights
	7

	Section 4.3 Notice of Sublicense Restrictions
	8

	Section 4.4 Encumbrances
	8

	Section 4.5 IP Cross Licenses
	8

	Section 4.6 Confidentiality
	8

		Article V
Representations and warranties

	Section 5.1 Mutual Warranties
	8

	Section 5.2 Disclaimer
	8

		Article VI
term and termination

	Section 6.1 Term
	9

	Section 6.2 No Other Termination
	9

	Section 6.3 Effect of Termination
	9

	Section 6.4 Survival
	9

		Article VII
DISPUTE RESOLUTION

	Section 7.1 Notice of Dispute
	9

    1

						
	Section 7.2 Executive Escalation
	9

	Section 7.3 Binding Arbitration
	9

	Section 7.4 Procedure
	10

	Section 7.5 No Limitation on Provisional Injunctive Relief
	10

		Article VIII
MISCELLANEOUS

	Section 8.1 Consent
	11

	Section 8.2 Limitation on Liability
	11

	Section 8.3 Interpretation
	11

	Section 8.4 Binding Effect
	11

	Section 8.5 Counterparts
	11

	Section 8.6 Entire Agreement
	11

	Section 8.7 Severability
	12

	Section 8.8 Failure or Indulgence not Waiver; Remedies Cumulative
	12

	Section 8.9 Third Party Beneficiaries
	12

	Section 8.10 Notices
	12

	Section 8.11 Governing Law
	13

	Section 8.12 Consent to Jurisdiction
	13

	Section 8.13 Waiver of Jury Trial
	13

	Section 8.14 Amendment
	14

	Section 8.15 Authority
	14

	Section 8.16 Master Transaction Agreement
	14

    2

INTELLECTUAL PROPERTY MATTERS AGREEMENT
This Intellectual Property Matters Agreement (this “Agreement”) is dated as of the 1st day of February, 2021, between SAP SE, a Societas Europaea registered in accordance with the corporate laws of Germany and the European Union (“SAP”), and Qualtrics International Inc., a Delaware corporation (“Qualtrics” with each of SAP and Qualtrics a “Party,” and together, the “Parties”).  

RECITALS
WHEREAS, SAP is the indirect beneficial owner of all the issued and outstanding Class B common stock of Qualtrics;
WHEREAS, SAP, through Qualtrics, is engaged in the business of providing a technology platform for experience management, as more completely described in a Registration Statement on Form S-1 (File No. 333-251767) filed with the Securities and Exchange Commission under the Securities Act (the “IPO Registration Statement”);
WHEREAS, SAP and Qualtrics currently contemplate that Qualtrics will make an initial public offering (the “IPO”) of its Class A common stock pursuant to the IPO Registration Statement; and
WHEREAS, the Parties intend in this Agreement to set forth the principal arrangements between SAP and Qualtrics regarding the use of certain Intellectual Property Rights as between the Parties from and after the filing of the IPO Registration Statement and the consummation of the IPO.

NOW, THEREFORE, in consideration of the foregoing and for other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the Parties hereto, for themselves and their respective successors and assigns, hereby covenant and agree as follows:
Article I.
DEFINITIONS
Section i.  Definitions
.  
     As used in this Agreement, the following terms shall have the following meanings, applicable both to the singular and the plural forms of the terms described:
“Affiliate” means any entity controlling, controlled by or under common control with an entity, where “control” will mean ownership, directly or indirectly, of the shares of an entity representing more than 50% of the voting rights in such entity.  Notwithstanding the 

foregoing, neither Qualtrics nor any of its Subsidiaries shall be deemed Affiliates of SAP under this Agreement.
“Authorized Third Parties” means any entity that is authorized by a Party or its Affiliates to exercise any legal rights or to perform any activities with respect to a Party’s products or services, including original equipment manufacturers, integrators, distributors, resellers, customers, partners, contractors, consultants, and users with such authorization, other than an SAP Entity or a Qualtrics Entity.
“Action” means any demand, action, suit, countersuit, arbitration, inquiry, proceeding or investigation by or before any federal, state, local, foreign or international Governmental Authority or any arbitration or mediation tribunal.
“Change of Control” means the occurrence of any one or more of the following events:
(i)the sale or disposition, in one or a series of related transactions, of all or substantially all of the consolidated assets of the Qualtrics Entities, taken as a whole, to any “person” or “group” (as such terms are used for purposes of Sections 13(d)(3) and 14(d)(2) of the Securities Exchange Act of 1934, as amended) other than SAP or any of its direct or indirect wholly-owned Subsidiaries;
(ii)any “person” or “group,” other than SAP or any of its direct or indirect wholly-owned Subsidiaries, is or becomes the beneficial owner, directly or indirectly, of more than 50% of the total voting power of the outstanding voting stock of Qualtrics, excluding as a result of any merger or consolidation that does not constitute a Change of Control pursuant to clause (c);
(iii)any merger or consolidation of Qualtrics with or into any other person, unless immediately thereafter SAP or any of its direct or indirect wholly-owned Subsidiaries beneficially owns a majority of the outstanding shares of the common stock (or equivalent voting securities) of the surviving or successor entity (or the parent entity thereof); or
(iv)SAP or any of its direct or indirect wholly-owned Subsidiaries ceases to have the ability to cause the election of that number of members of the board of directors of Qualtrics who would collectively have the right to vote a majority of the aggregate number of votes represented by all of the members of the board of directors of Qualtrics.
“Distribution Agreement” means the Distribution Agreement between the Parties of even date herewith.
“Governmental Authority” shall mean any federal, state, local, foreign or international court, government, department, commission, board, bureau, agency, official or other regulatory, administrative or governmental authority, or any arbitration or mediation tribunal or panel.
    2

“Improvement” means any modification, improvement or derivative work to or of any Intellectual Property Right.
“Intellectual Property Rights” means patents of any type, design rights, utility models or other similar invention rights, copyrights, mask work rights, trade secret rights, trademarks, trade names and service marks and any other intangible property rights, including applications and registrations for any of the foregoing, in any country, arising under statutory or common law or by contract and whether or not perfected, now existing or hereafter filed, issued, or acquired.
“Laws” means any statute, law, ordinance, regulation, rule, code, order, constitution, treaty, common law, judgment, decree, other requirement or rule of law of any Governmental Authority.
“Liabilities” means all debts, liabilities, guarantees, assurances, commitments and obligations, whether fixed, contingent or absolute, asserted or unasserted, matured or unmatured, liquidated or unliquidated, accrued or not accrued, known or unknown, due or to become due, whenever or however arising (including, without limitation, whether arising out of any contract or tort based on negligence or strict liability) and whether or not the same would be required by generally accepted principles and accounting policies to be reflected in financial statements or disclosed in the notes thereto.
“Master Transaction Agreement” means the Master Transaction Agreement between the Parties of even date herewith.
“Person” means an individual, a partnership, a corporation, a limited liability company, an association, a joint stock company, a trust, a joint venture, an unincorporated organization or a governmental entity or any department, agency or political subdivision thereof.
“Qualtrics Entities” means Qualtrics and its Subsidiaries and any entity which becomes a Subsidiary of Qualtrics after the date hereof, and “Qualtrics Entity” means any one of the Qualtrics Entities.
“Qualtrics IP” means, collectively, the Qualtrics Patents and the Qualtrics Copyrights and Trade Secrets.
“Qualtrics Business” means any business conducted by Qualtrics, including the sale, distribution and support of all products, services and technologies of, offered by or supported by Qualtrics and the Qualtrics Entities; provided, that the Qualtrics Business shall exclude (a) the SAP Business and (b) any third-party business that Qualtrics acquires after the Term that competes with the SAP Business.
“Qualtrics Copyrights and Trade Secrets” means all copyrights and trade secrets owned or controlled by, or licensed through, Qualtrics during the Term that are used in or necessary for the SAP Business, including any and all Improvements to the foregoing. For the 
    3

avoidance of doubt, Qualtrics Copyrights and Trade Secrets do not include patent or trademark rights.
“Qualtrics Patents” means all patents and patent applications owned or controlled by Qualtrics during the Term, including any patents that issue after the Term that claim priority from such patents and patent applications to the extent such later issued patents provide Qualtrics rights to bring any Action for infringement that occurred during the Term.
“SAP Business” means any business conducted by SAP, including the sale, distribution and support of all products, services and technologies of, offered by or supported by SAP and its Affiliates; provided, that the SAP Business shall exclude the Qualtrics Business.
“SAP Entities” means SAP and its Subsidiaries (other than the Qualtrics Entities) and any entity which becomes a Subsidiary of SAP after the date hereof, and “SAP Entity” means any one of the SAP Entities. 
“Subsidiary” means, as to any Person, a corporation, limited liability company, joint venture, partnership, trust, association or other entity in which such Person:  (i) beneficially owns, either directly or indirectly, more than 50% of (A) the total combined voting power of all classes of voting securities of such entity, (B) the total combined equity interests, or (C) the capital or profits interest, in the case of a partnership; or (ii) otherwise has the power to vote, either directly or indirectly, sufficient securities to elect a majority of the board of directors or similar governing body.  For the avoidance of doubt, for purposes of this Agreement, no Qualtrics Entity shall be deemed to be a Subsidiary of any SAP Entity.
“Third Party” means a Person other than the SAP Entities and the Qualtrics Entities.
(1)Each of the following terms is defined in the Section set forth opposite such term:
    4

						
	TERM	SECTION
	AAA	Section 7.3
	Agreement	Preamble
	Covenant Period	Section 3.1
	Dispute	Section 7.1
	Executive Escalation	Section 7.2
	IPO	Recitals
	IPO Registration Statement	Recitals
	Licensee	Section 2.3
	Licensed Products	Section 2.3
	Notice of Arbitration	Section 7.3
	Parties	Preamble
	Party	Preamble
	Qualtrics	Preamble
	Qualtrics IP Materials	Section 2.2
	SAP	Preamble
	Term	Section 6.1

(2)For the purposes of this Agreement, capitalized terms used in this Agreement and not otherwise defined herein shall have the meanings set forth in the Master Transaction Agreement.
Section ii.  Internal References
.  Unless the context indicates otherwise, references to Articles, Sections and paragraphs shall refer to the corresponding articles, sections and paragraphs in this Agreement and references to the parties shall mean the parties to this Agreement.
Article II.
Licenses
Section i.  License to SAP
.
(1)Patent License. Qualtrics hereby grants, and agrees to cause any relevant entity within the Qualtrics Entities to grant, to SAP a non-exclusive, irrevocable, perpetual, sublicensable (to the extent provided in Section 2.3), assignable (solely to the extent provided in Section 2.4), royalty-free, worldwide, fully paid-up license under the Qualtrics Patents to make, use, offer to sell, sell (or otherwise offer), and import any products and services that are or were part of the SAP Business at or prior to the expiration of the Term (including natural extensions of such products or services), and the right to have Authorized Third Parties exercise such rights on SAP’s behalf pursuant to a permissible sublicense in accordance with Section 2.3.
    5

(2)License to Copyrights and Trade Secrets. Qualtrics hereby grants, and agrees to cause any relevant entity within the Qualtrics Entities to grant, to SAP a non-exclusive, irrevocable, perpetual, sublicensable (to the extent provided in Section 2.3), assignable (solely to the extent provided in Section 2.4), royalty-free, worldwide, fully paid-up license under the Qualtrics Copyrights and Trade Secrets to use, copy, distribute, publicly perform, publicly display, modify and prepare derivative works of any such Qualtrics Copyrights and Trade Secrets solely in connection with the operation of the SAP Business and the right to have Authorized Third Parties exercise such rights on SAP’s behalf pursuant to a permissible sublicense in accordance with Section 2.3. Notwithstanding the foregoing, the license to Qualtrics Copyrights and Trade Secrets granted hereunder (i) does not include the right to market, sell or distribute any product(s) or service(s) of the Qualtrics Business; and (ii) does not extend to the development, creation, marketing, sale or distribution of any product or service that is (A) substantially similar to product(s) or services of the Qualtrics Business and (B) constituted, contains or is derived from a material portion of the Qualtrics Copyrights and Trade Screts.  SAP will take measures to protect the confidentiality, ownership and enforceability of any licensed Qualtrics Copyrights and Trade Secrets that are commensurate with the measures SAP uses to protect its own copyrights and trade secrets.
(3)Reservation of Rights. SAP acknowledges and agrees that no right, title or interest in or to the Qualtrics IP is granted by Qualtrics except as expressly set forth in this Section 2.1.  SAP shall not use the Qualtrics IP beyond the scope of, or for any other purposes than as set forth in the licenses granted in this Section 2.1.
(4)Third Party Intellectual Property Rights. SAP acknowledges and agrees that the licenses granted in this Section 2.1 shall not include any Third Party Intellectual Property Rights that are licensed to Qualtrics and are not sublicenseable to SAP or which are sublicensable to SAP but for which SAP has not elected in writing to receive a sublicense.  Notwithstanding the foregoing, to the extent Third Party Intellectual Property Rights are included in the licenses granted to SAP in this Section 2.1, SAP acknowledges and agrees that the rights granted to SAP with respect to the portion of Qualtrics IP consisting of Third Party Intellectual Property Rights are conditioned upon SAP’s compliance with the terms of the applicable agreements governing such Intellectual Property Rights between Qualtrics and such Third Parties (including payment of royalties).
Section ii.  No Delivery
.  SAP acknowledges and agrees that the licenses granted by Qualtrics hereunder do not require Qualtrics to deliver or provide to the SAP Entities any documents, technology, specifications, designs, source code, object code, training or other materials containing or embodying the Qualtrics IP (collectively, the “Qualtrics IP Materials”), and SAP hereby agrees not to request or require disclosure of a material portion of the Qualtrics IP Materials to any SAP Entity or Third Party outside the scope of joint development or cooperation efforts between SAP Entities and Qualtrics Entities.
Section iii.  Sublicensing Rights
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. The grant of the licenses in this Article II includes the right to grant sublicenses within the scope of such license to: (a) any SAP Entity (each, a “Licensee”); (b) any Third Party engaged by a Licensee to provide development, support or other services relating to any SAP Business product within the scope of the Licensee’s license (“Licensed Products”) for or on behalf of the Licensee; (c) any bona fide distributor or reseller of Licensed Products, but only to the extent necessary for such distributor or reseller to distribute and resell the Licensed Products; and (d) any end users of the Licensed Products, but only to the extent necessary for such end users to use the Licensed Products.
Section iv.  Assignment
.  The licenses set forth in this Article II may be assigned without consent from Qualtrics by SAP to any SAP Entity or (with notice to Qualtrics where permitted by applicable law and contracts by which SAP is bound and advance notice to Qualtrics where commercially reasonable) to any direct or indirect successor to all or substantially all of the business of SAP or to any acquirer of SAP (by merger, stock purchase or other form of transaction), which successor shall thereafter be deemed substituted as the Party hereto, effective upon such assignment, subject to written acceptance of such assignment by such successor; provided, that the definition of “SAP Business” as used throughout this Agreement shall be fixed to mean SAP Business as it existed prior to such acquisition or transaction. Notwithstanding anything in this Section 2.4 to the contrary, SAP’s rights to assign or sublicense any of the rights granted in this Article II shall not be deemed or interpreted to grant SAP the right to authorize any third party to exercise rights under such licenses to the extent that such exercise would be in excess of the rights expressly granted to SAP under this Agreement.
Section v.  Bankruptcy Code Designation
. The licenses granted in this Article II are licenses to “intellectual property” as the term is defined in 11 U.S.C. Section 101(35A) of the United States Code. All written agreements entered into in connection with the Parties’ performances hereunder from time to time shall be considered agreements “supplementary” to this Agreement for purposes of said Section 365(n).
Article III.
COVENANT NOT TO SUE
Section i.  SAP Covenant
. SAP, on behalf of itself and the SAP Entities, covenants that, for a period of seven years following the expiration of the Term (the “Covenant Period”), neither it nor any SAP Entity will sue, threaten to sue, or cause or assist a Third Party in suing or threatening to sue (a) Qualtrics, (b) any Qualtrics Entity that is a Qualtrics Entity at the time of such expiration of the Term, (c) any Qualtrics Entity that is newly formed after the expiration of the Term as part of the natural growth of Qualtrics’ operations and governance and not as part of external mergers, acquisitions, investments or other similar activities; provided, that such newly formed Qualtrics Entity is not the assignee of pre-existing Qualtrics assets (that were not otherwise covered by this 
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covenant) or third-party assets or, (d) subject to SAP’s written approval, any other Qualtrics Entity, or in each case their respective Authorized Third Parties, for any claim that the making, use, offer for sale, sale, import or distribution of any products or services that are or were part of the Qualtrics Business at or prior to the date of such expiration (including natural extensions of such products or services) infringes or violates any patent or patent application that is owned or controlled by SAP as of the date of such expiration, including any patents that issue after the Term that claim priority from such patents and patent applications to the extent such later issued patents provide SAP rights to bring any Action for infringement that occurred during the Term.  For the avoidance of doubt, such covenant will (i) also prohibit such suits, threats, causation or assistance after the Covenant Period to the extent they are for damages or claims for relief that arise from or relate to actions occurring during the Covenant Period, and (ii) not extend to any Third-Party products or services.
Section ii.  No Assignment
. The rights set forth in this Article III may not be assigned or transferred, whether in whole or in part and whether by merger, stock purchase or other form of transaction, without prior written consent from SAP, and any attempt by Qualtrics to assign the rights granted hereunder in violation of this Section 3.2 shall be void and of no effect. For the avoidance of doubt, upon a Change of Control, the rights set forth in this Article III will remain in full force and effect with respect to Qualtrics Entities (to the extent applicable, pursuant to the terms of this Article III), but will not be transferred to Qualtrics’ new parent (or other Affiliates of the new parent) or shareholders.
Article IV.
COVENANTS; RESPONSIBILITIES OF THE PARTIES
Section i.  Sale of Intellectual Property Rights
.  Should Qualtrics sell, transfer or otherwise dispose of its rights in any of the Qualtrics IP, Qualtrics shall (a) ensure that the acquirer shall execute a written undertaking acknowledging the licenses granted to SAP pursuant to this Agreement, including without limitation all licenses granted hereunder, (b) following a Change of Control, provide notice to SAP of such sale, transfer or other disposal, and (c) upon SAP’s request, promptly provide a copy of such undertaking to SAP.  For the avoidance of doubt, such written undertaking shall not be required by the mere non-exclusive license of Qualtrics IP (or other similar transaction) in the ordinary course of business without transfer of ownership.
Section ii.  Ownership; Responsibility for Intellectual Property Rights
.  As between the Parties, each Party owns and shall continue to own their respective Intellectual Property Rights, including all Improvements thereto, regardless of whether such Improvements are created or developed by the other Party or its Affiliates.  Each Party shall assign and hereby assigns all right, title and interest in and to any and all such Improvements to the other Party’s Intellectual Property Rights to such other Party.  Each Party shall have the right (but not the obligation) to prepare, file, prosecute, issue, maintain, assign, 
    8

dispose of, enforce, abandon and terminate its own Intellectual Property Rights at its sole discretion and expense.
Section iii.  Notice of Sublicense Restrictions
.  To the extent Qualtrics has knowledge that any Third-Party Intellectual Property Rights sublicensed by Qualtrics to SAP under this Agreement are used in connection with any products or services of the SAP Business, Qualtrics shall notify SAP in writing of such Third-Party Intellectual Property Rights, along with any restrictions, limitations and payment obligations associated therewith.
Section iv.  Encumbrances
.  Except as expressly provided in Section 4.5 below, neither Party will take any action that will require a license or assignment of any of the other Party’s Intellectual Property Rights, including (a) licensing or distributing any of the other Party’s products that are not authorized under the Distribution Agreement, (b) subjecting any of the other Party’s Intellectual Property Rights to any standards organization or open source license, or (c) including the other Party’s Intellectual Property Rights in any general or portfolio-wide licensed granted by such Party.
Section v.  IP Cross Licenses
.  Notwithstanding the provisions of Section 4.4, during the Term as set forth in Section 6.1, SAP may include Qualtrics Patents in any general or portfolio-wide cross-licenses of Intellectual Property Rights entered into between SAP and Third Parties.  If SAP includes Qualtrics Patents in any such general or portfolio-wide license, SAP will, (a) give Qualtrics notice of any such inclusion and, to the extent commercially reasonable, provide Qualtrics advance notice thereof, (b) disclose the terms of such cross-license to Qualtrics where permissible by applicable law and contracts by which SAP is bound; provided, that SAP will use commercially reasonable efforts to be able to make such disclosure, and (c) ensure that, to the extent such cross-license includes the Qualtrics Patents, the benefit of such cross license extends to Qualtrics to substantially the same extent it extends to SAP Entities, and ensure that the duration of such benefit to Qualtrics is the same as the duration of the license of the Qualtrics Patents.
Section vi.  Confidentiality
.  The following provisions of the Master Transaction Agreement are hereby incorporated by reference, mutatis mutandis: Section 3.5.
Article V.
Representations and warranties
Section i.  Mutual Warranties
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.  Each Party represents and warrants that: (a) it and its Affiliates have not and will not enter into any agreements, obligations, or commitments with any third party that conflict in any way with their obligations under this Agreement; (b) it has the full right, power, and authority to execute and deliver this Agreement and to perform its terms; (c) the execution and delivery of this Agreement and the consummation of the transactions required by this Agreement will not violate or conflict with any charter provision or bylaw of a Party or any of its Affiliates; and (d) this Agreement is enforceable against each Party according to its terms.
Section ii.  Disclaimer
.  EXCEPT AS EXPRESSLY PROVIDED IN THIS AGREEMENT OR THE MASTER TRANSACTION AGREEMENT, NO EXPRESS OR IMPLIED WARRANTIES ARE GIVEN BY EITHER PARTY OR ITS AFFILIATES WITH RESPECT TO ANY INTELLECTUAL PROPERTY RIGHTS OR ANY OTHER MATTER OR SUBJECT ARISING OUT OF THIS AGREEMENT, INCLUDING THE IMPLIED WARRANTIES OF MERCHANTABILITY, FITNESS FOR A PARTICULAR PURPOSE, ANY IMPLIED WARRANTY ARISING OUT OF COURSE OF DEALING OR USAGE OF TRADE, OR REGARDING THE VALIDITY, REGISTRABILITY, SCOPE, ENFORCEABILITY OR NON-INFRINGEMENT OF ANY INTELLECTUAL PROPERTY RIGHTS SUBJECT TO THIS AGREEMENT.
Article VI.
term and termination
Section i.  Term
.  This Agreement and the rights and licenses granted hereunder shall become effective on the Effective Date and shall continue in effect until Qualtrics undergoes a Change of Control (the “Term”).
Section ii.  No Other Termination
.  The licenses granted by Qualtrics and the Qualtrics Entities hereunder shall be irrevocable and perpetual (or for the life of the Qualtrics Patents) and shall not be terminable by Qualtrics or the Qualtrics Entities, and the licenses and covenants granted under this Agreement shall continue in full force and effect in accordance with the applicable terms thereof, notwithstanding any material breach of any term hereof by any Party hereto.  Nothing herein will be construed as a waiver of the right of either Party to seek equitable or other relief to ensure compliance with the license restrictions set forth in this Agreement.
Section iii.  Effect of Termination
.  Upon expiration of the Term, the licenses granted to SAP under Section 2.1 shall continue, and the covenant made by SAP under Section 3.1 shall apply, in each case, in accordance with the terms of this Agreement.
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Section iv.  Survival
.  In addition to the provisions referenced in Section 6.3, the provisions of Articles I, II, III, VI, VII and VIII, and Sections 4.1 (for so long as SAP has ongoing rights under Section 2.1), 4.2, 4.6 and 5.2, shall survive any termination or expiration of this Agreement.
Article VII.
DISPUTE RESOLUTION
Section i.  Notice of Dispute
.  The Parties shall attempt to resolve any dispute, claim or controversy arising under, out of or in connection with this Agreement (a “Dispute”) amicably.  In no event shall any Party commence any judicial or arbitral proceeding against another Party without first providing to the other Party to the Dispute written notice of the Dispute with sufficient detail, including reference to the contractual provisions at issue, to allow the other Party to evaluate the dispute and negotiate its resolution.
Section ii.  Executive Escalation
.  Upon receipt of a notice of Dispute as described in Section 7.1, the Dispute will be referred to the executive management representatives designated by each Party (“Executive Escalation”).  Such representatives shall meet in person or by telephone (including videoconference) and in good faith attempt to settle the Dispute.
Section iii.  Binding Arbitration
.  If the Dispute has not been resolved by Executive Escalation for any reason (including a refusal by one or more Parties to participate in negotiations and discussions), within 120 days (which timeframe may be extended as mutually agreed by the Parties) of receipt of a notice of Dispute, either Party may refer the Dispute to final and binding arbitration administered under the commercial rules of the American Arbitration Association (“AAA”), including its expedited procedures, except as modified herein, by sending a written notice of its intent to arbitrate to the other Party, (the “Notice of Arbitration”).  Notwithstanding the foregoing, the following Disputes will not be subject to arbitration but will be determined by a court of competent jurisdiction as described in Section 8.12: (a) any Dispute arising out of or based upon fraud, intentional misrepresentation or intentional breach of covenant, for which a Party may pursue all available remedies in any court of competent jurisdiction or by arbitration as provided for in Section 8.02 and (b) any determination of the applicability of any of the foregoing exceptions to the agreement to arbitrate.
Section iv.  Procedure
.  There shall be three arbitrators: one appointed by SAP, one appointed by Qualtrics, and one appointed by the other two arbitrators.  If the Parties are unable to agree upon arbitrators within 30 days of the receipt of the Notice of Arbitration, either Party may request the 
    11

AAA to appoint the arbitrators. The language of arbitration shall be English.  The place of arbitration shall be in New York, New York, unless otherwise agreed upon by the Parties. The award rendered by the arbitrator shall be final and binding on the Parties and shall be deemed enforceable in any court having jurisdiction thereof. The arbitrator shall have only the power to award damages, injunctive relief and other remedies to the extent the same would be available in a court of Law having jurisdiction of the matter. The arbitrator shall have the power to compel such discovery or production of relevant documents as is appropriate to the purposes of the arbitration in accomplishing fair, speedy and cost-effective confidential resolution of disputes. All discovery activities shall be expressly limited to matters directly relevant to the dispute being arbitrated.  The arbitrator shall have no power to award: (i) damages in excess of or in contravention of this Article VII or (ii) attorneys’ fees or costs. The arbitrator shall promptly commence the arbitral proceeding and issue a written and reasoned award as promptly as is reasonable under the circumstances, but no later than six months after his or her appointment, unless the arbitrator determines that the interest of justice requires that this period be extended.  All statutes of limitation applicable to any dispute shall apply to any arbitration proceeding. Judgment upon any award rendered in arbitration may be entered in any court having jurisdiction. Each Party acknowledges that it is giving up judicial rights to a jury trial under the foregoing provision.
Section v.  No Limitation on Provisional Injunctive Relief
.  Nothing in this Agreement shall restrict or delay the ability of any Party to seek provisional injunctive relief from any federal or state court of competent jurisdiction located in Delaware, as set forth in Section 8.12.  Without limitation to the above, each Party acknowledges that the unauthorized use or disclosure of the other Party’s confidential information or misuse of such Party’s Intellectual Property Rights could cause the non-breaching Party to incur irreparable harm and significant damages, the degree of which may be difficult to ascertain.  Accordingly, each Party agrees that the non-breaching Party in such event shall have the right to seek immediate provisional relief to enjoin any unauthorized use or disclosure of its confidential information or Intellectual Property Rights, in addition to any other rights and remedies that it may have at Law or otherwise.
Article VIII.
MISCELLANEOUS
Section i.  Consent
.  Any consent of either Party pursuant to this Agreement shall not be effective unless it is in writing and evidenced by the signature of the General Counsel or another duly authorized signatory of such Party (or such other Person that the General Counsel has specifically authorized in writing to give such consent).
Section ii.  Limitation on Liability
.  IN NO EVENT SHALL A PARTY BE LIABLE TO ANY OTHER PARTY FOR ANY INDIRECT, INCIDENTAL, SPECIAL, PUNITIVE OR CONSEQUENTIAL 
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DAMAGES IN ANY WAY RELATED TO OR ARISING FROM THIS AGREEMENT OR ANY INTELLECTUAL PROPERTY RIGHTS LICENSED OR OTHERWISE PROVIDED HEREUNDER, UNDER ANY THEORY OF LAW, INCLUDING, CONTRACT, TORT OR STRICT LIABILITY, WHETHER OR NOT THE OTHER PARTY HAS BEEN ADVISED OF THE POSSIBILITY OF SUCH DAMAGES.
Section iii.  Interpretation
.  The headings contained in this Agreement are for reference purposes only and shall not affect in any way the meaning or interpretation of this Agreement.  Words in the singular shall be held to include the plural and vice versa and words of one gender shall be held to include the other gender as the context requires.  The terms “hereof,” “herein” and “herewith” and words of similar import, unless otherwise stated, shall be construed to refer to this Agreement as a whole and not to any particular provision of this Agreement.  Any reference herein to this Agreement, unless otherwise stated, shall be construed to refer to this Agreement as amended, supplemented or otherwise modified from time to time.  The word “including” and words of similar import when used in this Agreement shall mean “including, without limitation,” unless the context otherwise requires or unless otherwise specified.  The word “or” shall not be exclusive.
Section iv.  Binding Effect
.  This Agreement shall inure to the benefit of and be binding upon the Parties and their respective legal representatives and successors, and nothing in this Agreement, express or implied, is intended to confer upon any other Person any rights or remedies of any nature whatsoever under or by reason of this Agreement. Neither Party may assign this Agreement or any rights or obligations hereunder, without the prior written consent of the other Party, and any such assignment shall be void; provided, however, that either Party may assign this Agreement to a successor entity in conjunction with such Party’s reincorporation in another jurisdiction or into another business form
Section v.  Counterparts
.  This Agreement may be executed in counterparts, each of which shall be deemed to be an original but all of which shall constitute one and the same agreement.
Section vi.  Entire Agreement
.  This Agreement constitutes the entire agreement between the Parties with respect to the subject matter hereof and shall supersede all prior written and oral and all contemporaneous oral agreements and understandings with respect to the subject matter hereof and thereof.
Section vii.  Severability
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.  If any term or other provision of this Agreement is determined by a court, administrative agency or arbitrator to be invalid, illegal or incapable of being enforced by any rule of law or public policy, all other conditions and provisions of this Agreement shall nevertheless remain in full force and effect so long as the economic or legal substance of the transactions contemplated hereby is not affected in any manner materially adverse to either Party.  Upon such determination that any term or other provision is invalid, illegal or incapable of being enforced, the Parties shall negotiate in good faith to modify this Agreement so as to effect the original intent of the Parties as closely as possible in an acceptable manner to the end that transactions contemplated hereby are fulfilled to the fullest extent possible.
Section viii.  Failure or Indulgence not Waiver; Remedies Cumulative
.  No failure or delay on the part of either Party hereto in the exercise of any right hereunder shall impair such right or be construed to be a waiver of, or acquiescence in, any breach of any representation, warranty or agreement herein, nor shall any single or partial exercise of any such right preclude other or further exercise thereof or of any other right.  All rights and remedies existing under this Agreement are cumulative to, and not exclusive of, any rights or remedies otherwise available.
Section ix.  Third Party Beneficiaries
.  None of the provisions of this Agreement shall be for the benefit of or enforceable by any Third Party, including any creditor of any Person.  No such Third Party shall obtain any right under any provision of this Agreement or shall by reasons of any such provision make any claim in respect of any Liability (or otherwise) against either Party hereto.
Section x.  Notices
.  Notices, offers, requests or other communications required or permitted to be given by any Party pursuant to the terms of this Agreement shall be given in writing to the respective Parties to the following addresses:
(1)If to SAP, to:
SAP SE
Dietmar-Hopp-Allee 16
Germany – 69190
Attention: Jochen Scholten
E-mail:

with a copy to:

Anthony DiBartolomeo
3999 West Chester Pike
Newtown Square, PA 19073
Email:
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(2)If to Qualtrics, to:
Qualtrics International Inc.
333 W River Park Dr
Provo, UT 84604
Attention:  Legal Department
E-mail:
or to such other address as the Party to whom notice is given may have previously furnished to the other in writing as provided herein. Any notice shall be sent by hand delivery, internationally recognized overnight courier or, within the United States, may also be sent via certified mail, return receipt requested and, in any event, shall be concurrently sent by e-mail. All notices shall be deemed to have been given when received, if hand delivered; when transmitted, if transmitted electronically; one working day after it is sent, if sent by internationally recognized overnight courier; and three days after it is postmarked, if mailed first class mail or certified mail, return receipt requested, with postage prepaid.
Section xi.  Governing Law
.  This Agreement, including the validity hereof and the rights and obligations of the Parties hereunder, shall be construed in accordance with, and all Disputes arising out of or relating to this Agreement shall be governed by, the laws of the State of Delaware applicable to contracts made and to be performed entirely in such State (without giving effect to the conflicts of laws provisions thereof).
Section xii.  Consent to Jurisdiction
.  THE PARTIES AGREE THAT JURISDICTION AND VENUE IN ANY ACTION BROUGHT BY ANY PARTY IN CONNECTION WITH THIS AGREEMENT, THE TRANSACTIONS, OR THE PERFORMANCE OF THE OBLIGATIONS IMPOSED HEREUNDER SHALL PROPERLY AND EXCLUSIVELY LIE IN ANY FEDERAL OR STATE COURT LOCATED IN THE STATE OF DELAWARE.  EACH PARTY ALSO AGREES NOT TO BRING ANY ACTION (OTHER THAN APPEALS) IN CONNECTION WITH THIS AGREEMENT, THE TRANSACTIONS, OR THE PERFORMANCE OF THE OBLIGATIONS IMPOSED HEREUNDER IN ANY OTHER COURT.  BY EXECUTION AND DELIVERY OF THIS AGREEMENT, EACH PARTY IRREVOCABLY SUBMITS TO THE JURISDICTION OF SUCH COURTS FOR ITSELF AND IN RESPECT OF ITS PROPERTY WITH RESPECT TO ANY SUCH ACTION.  THE PARTIES IRREVOCABLY AGREE THAT VENUE WOULD BE PROPER IN SUCH COURT, AND HEREBY WAIVE ANY OBJECTION THAT ANY SUCH COURT IS AN IMPROPER OR INCONVENIENT FORUM FOR THE RESOLUTION OF SUCH ACTION.  THE PARTIES FURTHER AGREE THAT THE MAILING BY CERTIFIED OR REGISTERED MAIL, RETURN RECEIPT REQUESTED, OF ANY PROCESS REQUIRED BY ANY SUCH COURT SHALL CONSTITUTE VALID AND LAWFUL SERVICE OF PROCESS AGAINST THEM, 
    15

WITHOUT NECESSITY FOR SERVICE BY ANY OTHER MEANS PROVIDED BY STATUTE OR RULE OF COURT.  
Section xiii.  Waiver of Jury Trial
.  EACH OF THE PARTIES ACKNOWLEDGES AND AGREES THAT ANY CONTROVERSY THAT MAY ARISE UNDER THIS AGREEMENT IS LIKELY TO INVOLVE COMPLICATED AND DIFFICULT ISSUES, AND THEREFORE EACH OF THE PARTIES HEREBY IRREVOCABLY AND UNCONDITIONALLY WAIVES ANY RIGHT SUCH PARTY MAY HAVE TO A TRIAL BY JURY IN RESPECT OF ANY LITIGATION DIRECTLY OR INDIRECTLY ARISING OUT OF OR RELATING TO THIS AGREEMENT.  EACH OF THE PARTIES CERTIFIES AND ACKNOWLEDGES THAT (A) NO REPRESENTATIVE, AGENT OR ATTORNEY OF THE OTHER COMPANY HAS REPRESENTED, EXPRESSLY OR OTHERWISE, THAT THE OTHER PARTY WOULD NOT, IN THE EVENT OF ANY LITIGATION, SEEK TO ENFORCE THE FOREGOING WAIVER, (B) EACH OF THE PARTIES UNDERSTANDS AND HAS CONSIDERED THE IMPLICATIONS OF THIS WAIVER, (C) EACH OF THE PARTIES MAKES THIS WAIVER VOLUNTARILY AND (D) EACH OF THE PARTIES HAS BEEN INDUCED TO ENTER INTO THIS AGREEMENT BY, AMONG OTHER THINGS, THE MUTUAL WAIVERS AND CERTIFICATIONS IN THIS Section 8.13.
Section xiv.  Amendment
.  This Agreement may be amended only by an instrument in writing signed by or on behalf of each of the Parties.
Section xv.  Authority
.  Each of the Parties represent to the other Party that (a) it has the corporate or other requisite power and authority to execute, deliver and perform this Agreement, (b) the execution, delivery and performance of this Agreement by it have been duly authorized by all necessary corporate or other actions, (c) it has duly and validly executed and delivered this Agreement, and (d) this Agreement is its legal, valid and binding obligation, enforceable against it in accordance with its terms, subject to applicable bankruptcy, insolvency, reorganization, moratorium or other similar laws affecting creditors’ rights generally and general equity principles.
Section xvi.  Master Transaction Agreement
.  In the event there is any inconsistency between the provisions of this Agreement and the provisions of the Master Transaction Agreement, the provisions of this Agreement shall govern.
    16

[Signature Page Follows]

    17

IN WITNESS WHEREOF, the Parties have caused this Agreement to be signed by their duly authorized representatives as of the date first set forth above.
SAP SE

By:      /s/ Luka Mucic    
Name: Luka Mucic
Title: Chief Financial Officer
By:      /s/ Jochen Scholten    
Name: Jochen Scholten
Title: General Counsel
QUALTRICS INTERNATIONAL INC.

By:  /s/ Chris Beckstead    
Name: Chris Beckstead
Title: President
[Signature Page to Intellectual Property Matters Agreement]

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