Document:

Exhibit 10.19

 

FOREIGN OBLIGATIONS GUARANTEE

 

THIS FOREIGN OBLIGATIONS GUARANTEE (the “Guarantee”), dated as of January 23, 2008, by each of the signatories listed on the signature pages hereto and each of the other entities that becomes a party hereto pursuant to Section 19 (the “Foreign Obligations Guarantors”), in favor of the Goldman Sachs Credit Partners L.P., as Collateral Agent under the Credit Agreement for the benefit of the Foreign Obligations Secured Parties.

 

W I T N E S S E T H:

 

WHEREAS, reference is made to that certain Credit Agreement, dated as of August 17, 2007 (as the same may be amended, restated, supplemented or otherwise modified, refinanced or replaced from time to time, the “Credit Agreement”), among Laureate Education Inc., a Maryland corporation (the “Parent  Borrower”), Iniciativas Culturales de España S.L., a Spanish limited liability company (the “Foreign Subsidiary Borrower”), the lenders or other financial institutions or entities from time to time party thereto (the “Lenders”), Goldman Sachs Credit Partners L.P., as Administrative Agent, Collateral Agent, and Swingline Lender, Citicorp North America, Inc., as Syndication Agent, Goldman Sachs Credit Partners L.P. and Citigroup Global Markets Inc., as Joint Lead Arrangers and Bookrunners, and the other Agents named therein; and

 

WHEREAS, pursuant to Section 6.2(iii)(A) of the Credit Agreement, the Foreign Obligations Guarantors shall execute and deliver this Guarantee to the Collateral Agent for the ratable benefit of the Foreign Obligations Secured Parties;

 

NOW, THEREFORE, in consideration of the foregoing, the Foreign Obligations Guarantors hereby agree with the Collateral Agent, for the ratable benefit of the Foreign Obligations Secured Parties, as follows:

 

1.             Defined Terms.

 

(a)           Unless otherwise defined herein, terms defined in the Credit Agreement and used herein shall have the meanings given to them in the Credit Agreement.

 

(b)           The words “hereof”, “herein” and “hereunder” and words of similar import when used in this Guarantee shall refer to this Guarantee as a whole and not to any particular provision of this Guarantee, and Section references are to Sections of this Guarantee unless otherwise specified. The words “include”, “includes” and “including” shall be deemed to be followed by the phrase “without limitation”.

 

(c)           The meanings given to terms defined herein shall be equally applicable to both the singular and plural forms of such terms.

 

2.             Guarantee.

 

(a)           Subject to the provisions of Section 2(b), each of the Foreign Obligations Guarantors hereby, jointly and severally, unconditionally and irrevocably, guarantees, as primary obligor and not merely as surety, to the Collateral Agent, for the ratable benefit of the Foreign

 

 

Obligations Secured Parties, the prompt and complete payment and performance when due (whether at the stated maturity, by required prepayment, acceleration, demand or otherwise) of the Foreign Obligations of anyone other than such Foreign Obligations Guarantor (including amounts that would become due but for operation of the automatic stay under 362(a) of the Bankruptcy Code, 11 U.S.C. § 362(a)).

 

(b)           Anything herein or in any other Credit Document to the contrary notwithstanding, the maximum liability of each Foreign Obligations Guarantor hereunder and under the other Credit Documents shall in no event exceed the amount that can be guaranteed by such Foreign Obligations Guarantor under the Bankruptcy Code or any applicable laws relating to fraudulent conveyances, fraudulent transfers or the insolvency of debtors.

 

(c)           Each Foreign Obligations Guarantor further agrees to pay any and all expenses (including all reasonable fees and disbursements of counsel) that may be paid or incurred by the Collateral Agent or any other Foreign Obligations Secured Party in enforcing, or obtaining advice of counsel in respect of, any rights with respect to, or collecting, any or all of the Foreign Obligations and/or enforcing any rights with respect to, or collecting against, such Foreign Obligations Guarantor under this Guarantee.

 

(d)           Each Foreign Obligations Guarantor agrees that the Foreign Obligations may at any time and from time to time exceed the amount of the liability of such Foreign Obligations Guarantor hereunder without impairing this Guarantee or affecting the rights and remedies of the Collateral Agent or any other Foreign Obligations Secured Party hereunder.

 

(e)           No payment or payments made by the Parent Borrower, any of the Foreign Obligations Guarantors, any other guarantor or any other Person or received or collected by the Collateral Agent, the Administrative Agent or any other Foreign Obligations Secured Party from the Parent Borrower, any of the Foreign Obligations Guarantors, any other guarantor or any other Person by virtue of any action or proceeding or any set-off or appropriation or application at any time or from time to time in reduction of or in payment of the Foreign Obligations shall be deemed to modify, reduce, release or otherwise affect the liability of any Foreign Obligations Guarantor hereunder, which shall, notwithstanding any such payment or payments, other than payments made by such Foreign Obligations Guarantor in respect of the Foreign Obligations or payments received or collected from such Foreign Obligations Guarantor in respect of the Foreign Obligations, remain liable for the Foreign Obligations up to the maximum liability of such Foreign Obligations Guarantor hereunder until the Foreign Obligations under the Credit Documents are paid in full and the Commitments thereunder are terminated and no Spanish Letters of Credit shall be outstanding or the Spanish Letters of Credit Outstanding have been Cash Collateralized, otherwise collateralized with “back to back” letters of credit or otherwise supported on terms satisfactory to the Collateral Agent.

 

(f)            Each Foreign Obligations Guarantor agrees that whenever, at any time, or from time to time, it shall make any payment to the Collateral Agent or any other Foreign Obligations Secured Party on account of its liability hereunder, it will notify the Collateral Agent in writing that such payment is made under this Guarantee for such purpose.

 

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(g)           With respect to any Foreign Obligations Guarantor incorporated in Spain (each, a “Spanish Guarantor”), this Guarantee is personal, joint and several (“solidaria”), unconditional, abstract, autonomous and may be enforced upon first demand, for which reason each such Spanish Guarantor may not question whether or not the Foreign Obligations have been fulfilled.  Furthermore, each Spanish Guarantor expressly waives the benefits of order, division and exemption (“beneficios de orden, división y excusión”).

 

3.             Right of Contribution. Each Foreign Obligations Guarantor hereby agrees that to the extent that a Foreign Obligations Guarantor shall have paid more than its proportionate share of any payment made hereunder (including by way of set-off rights being exercised against it), such Foreign Obligations Guarantor shall be entitled to seek and receive contribution from and against any other Foreign Obligations Guarantor hereunder who has not paid its proportionate share of such payment.  Each Foreign Obligations Guarantor’s right of contribution shall be subject to the terms and conditions of Section 5 hereof. The provisions of this Section 3 shall in no respect limit the obligations and liabilities of any Foreign Obligations Guarantor to the Collateral Agent and the other Foreign Obligations Secured Parties, and each Foreign Obligations Guarantor shall remain liable to the Collateral Agent and the other Foreign Obligations Secured Parties up to the maximum liability of such Foreign Obligations Guarantor hereunder.

 

4.             Right of Set-off. In addition to any rights and remedies of the Foreign Obligations Foreign Obligations Secured Parties provided by law, each Foreign Obligations Guarantor hereby irrevocably authorizes each Foreign Obligations Secured Party at any time and from time to time following the occurrence and during the continuance of an Event of Default, without notice to such Foreign Obligations Guarantor or any other Foreign Obligations Guarantor, any such notice being expressly waived by each Foreign Obligations Guarantor, upon any amount becoming due and payable by such Foreign Obligations Guarantor hereunder (whether at stated maturity, by acceleration, demand or otherwise), to set-off and appropriate and apply against such amount any and all deposits (general or special, time or demand, provisional or final), in any currency, and any other credits, indebtedness or claims, in any currency, in each case whether direct or indirect, absolute or contingent, matured or unmatured, at any time held or owing by such Foreign Obligations Secured Party to or for the credit or the account of such Foreign Obligations Guarantor. Each Foreign Obligations Secured Party shall notify such Foreign Obligations Guarantor promptly of any such set-off and the appropriation and application made by such Foreign Obligations Secured Party, provided that the failure to give such notice shall not affect the validity of such set-off and application.

 

5.             No Subrogation. Notwithstanding any payment or payments made by any of the Foreign Obligations Guarantors hereunder or any set-off or appropriation and application of funds of any of the Foreign Obligations Guarantors by the Collateral Agent or any other Foreign Obligations Secured Party, no Foreign Obligations Guarantor shall be entitled to be subrogated to any of the rights (or if subrogated by operation of law, such Foreign Obligations Guarantor hereby waives such rights to the extent permitted by applicable law) of the Collateral Agent or any other Foreign Obligations Secured Party against the Parent Borrower or any other Foreign Obligations Guarantor or any collateral security or guarantee or right of offset held by the Collateral Agent or any other Foreign Obligations Secured Party for the payment of any of

 

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the Foreign Obligations, nor shall any Foreign Obligations Guarantor seek or be entitled to seek any contribution, indemnifications or reimbursement from the Parent Borrower or any other Foreign Obligations Guarantor or other guarantor in respect of payments made by such Foreign Obligations Guarantor hereunder in each case, until all amounts owing to the Collateral Agent and the other Foreign Obligations Secured Parties on account of the Foreign Obligations under the Credit Documents are paid in full and the Commitments thereunder are terminated and no Spanish Letters of Credit shall be outstanding or the Spanish Letters of Credit Outstanding have been Cash Collateralized, otherwise collateralized with “back to back” letters of credit or otherwise supported on terms satisfactory to the Collateral Agent. If any amount shall be paid to any Foreign Obligations Guarantor on account of such subrogation rights at any time when all the Foreign Obligations shall not have been paid in full, such amount shall be held by such Foreign Obligations Guarantor in trust for the Collateral Agent and the other Foreign Obligations Secured Parties, segregated from other funds of such Foreign Obligations Guarantor, and shall, forthwith upon receipt by such Foreign Obligations Guarantor, be turned over to the Collateral Agent in the exact form received by such Foreign Obligations Guarantor (duly indorsed by such Foreign Obligations Guarantor to the Collateral Agent, if required), to be applied against the Foreign Obligations, whether due or to become due, in such order as the Collateral Agent may determine. Each Foreign Obligations Guarantor further agrees that, to the extent the waiver or agreement to withhold the exercise of its rights of subrogation, reimbursement, indemnification and contribution as set forth herein is found by a court of competent jurisdiction to be void or voidable for any reason, any rights of subrogation, reimbursement or indemnification such Foreign Obligations Guarantor may have against Parent Borrower or against any collateral or security, and any rights of contribution such Foreign Obligations Guarantor may have against any such other guarantor, shall be junior and subordinate to any rights the Collateral Agent or any Foreign Obligations Secured Party may have against Parent Borrower, to all right, title and interest the Collateral Agent or any Foreign Obligations Secured Party may have in any such collateral or security, and to any right the Collateral Agent or any Foreign Obligations Secured Party may have against such other guarantor.

 

6.             Amendments, etc. with Respect to the Foreign Obligations; Waiver of Rights.  Each Foreign Obligations Guarantor shall remain obligated hereunder notwithstanding that, without any reservation of rights against any Foreign Obligations Guarantor and without notice to or further assent by any Foreign Obligations Guarantor, (a) any demand for payment of any of the Foreign Obligations made by the Collateral Agent or any other Foreign Obligations Secured Party may be rescinded by such party and any of the Foreign Obligations continued, (b) the Foreign Obligations, or the liability of any other party upon or for any part thereof, or any collateral security or guarantee therefor or right of offset with respect thereto, may, from time to time, in whole or in part, be renewed, extended, amended, modified, accelerated, compromised, waived, surrendered or released by the Collateral Agent or any other Foreign Obligations Secured Party, (c) the Credit Agreement, the other Credit Documents, the Spanish Letters of Credit and any other documents executed and delivered in connection therewith and the Foreign Obligations Secured Hedge Agreements and any other documents executed and delivered in connection therewith may be amended, modified, supplemented or terminated, in whole or in part, as the Administrative Agent (or the Required Lenders, as the case may be, or, in the case of any Foreign Obligations Secured Hedge Agreement, the party thereto) may deem advisable from

 

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time to time, and (d) any collateral security, guarantee or right of offset at any time held by the Collateral Agent or any other Foreign Obligations Secured Party for the payment of any of the Foreign Obligations may be sold, exchanged, waived, surrendered or released. Neither the Collateral Agent nor any other Foreign Obligations Secured Party shall have any obligation to protect, secure, perfect or insure any Lien at any time held by it as security for the Foreign Obligations or for this Guarantee or any property subject thereto. When making any demand hereunder against any Foreign Obligations Guarantor, the Collateral Agent or any other Foreign Obligations Secured Party may, but shall be under no obligation to, make a similar demand on any Parent Borrower or any Foreign Obligations Guarantor or any other person, and any failure by the Collateral Agent or any other Foreign Obligations Secured Party to make any such demand or to collect any payments from any Parent Borrower or any Foreign Obligations Guarantor or any other person or any release of any Parent Borrower or any Foreign Obligations Guarantor or any other person shall not relieve any Foreign Obligations Guarantor in respect of which a demand or collection is not made or any Foreign Obligations Guarantor not so released of its several obligations or liabilities hereunder, and shall not impair or affect the rights and remedies, express or implied, or as a matter of law, of the Collateral Agent or any other Foreign Obligations Secured Party against any Foreign Obligations Guarantor. For the purposes hereof “demand” shall include the commencement and continuance of any legal proceedings.

 

7.             Guarantee Absolute and Unconditional.

 

(a)           Each Foreign Obligations Guarantor waives any and all notice of the creation, contraction, incurrence, renewal, extension, amendment, waiver or accrual of any of the Foreign Obligations, and notice of or proof of reliance by the Collateral Agent or any other Foreign Obligations Secured Party upon this Guarantee or acceptance of this Guarantee. All Foreign Obligations shall conclusively be deemed to have been created, contracted or incurred, or renewed, extended, amended, waived or accrued, in reliance upon this Guarantee, and all dealings between any Parent Borrower and any of the Foreign Obligations Guarantors, on the one hand, and the Collateral Agent and the other Foreign Obligations Secured Parties, on the other hand, likewise shall be conclusively presumed to have been had or consummated in reliance upon this Guarantee. To the fullest extent permitted by applicable law, each Foreign Obligations Guarantor waives diligence, promptness, presentment, protest and notice of protest, demand for payment or performance, notice of default or nonpayment, notice of acceptance and any other notice in respect of the Foreign Obligations or any part of them, and any defense arising by reason of any disability or any other defense of the Parent Borrower or any of the Foreign Obligations Guarantors with respect to the Foreign Obligations. Each Foreign Obligations Guarantor understands and agrees that this Guarantee shall be construed as a continuing, absolute and unconditional guarantee of payment and not of collection (this Guarantee is a primary obligation of each Foreign Obligations Guarantor and not merely a contract of surety) without regard to and hereby waives, to the fullest extent permitted by applicable law, any and all defenses that it may have arising in connection with, (a) the validity, regularity or enforceability of the Credit Agreement, any other Credit Document, any Spanish Letter of Credit, any Foreign Obligations Secured Hedge Agreement, any of the Foreign Obligations or any amendment to or waiver of, any provision of any thereof (including any change in time, place, manner, or place of payment, amendment, or waiver or increase thereof) or any collateral security therefor or guarantee or right of

 

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offset with respect thereto at any time or from time to time held by the Collateral Agent or any other Foreign Obligations Secured Party, (b) any defense, set-off or counterclaim (other than a defense of payment or performance), including but not limited to failure of consideration, breach of warranty, payment, statute of frauds, statute of limitations, accord and satisfaction and usury, that may at any time be available to or be asserted by any Parent Borrower against the Collateral Agent or any other Foreign Obligations Secured Party or, (c) any other circumstance whatsoever (with or without notice to or knowledge of any Parent Borrower or such Foreign Obligations Guarantor) that constitutes, or might be construed to constitute, an equitable or legal discharge of any Parent Borrower for the Foreign Obligations, or of such Foreign Obligations Guarantor under this Guarantee, in bankruptcy or in any other instance. When pursuing its rights and remedies hereunder against any Foreign Obligations Guarantor, the Collateral Agent and any other Foreign Obligations Secured Party may, but shall be under no obligation to, pursue such rights and remedies as it may have against any Parent Borrower or any other Person or against any collateral security or guarantee for the Foreign Obligations or any right of offset with respect thereto, and any failure by the Collateral Agent or any other Foreign Obligations Secured Party to pursue such other rights or remedies or to collect any payments from any Parent Borrower or any such other Person or to realize upon any such collateral security or guarantee or to exercise any such right of offset, or any release of any Parent Borrower or any such other Person or any such collateral security, guarantee or right of offset, shall not relieve such Foreign Obligations Guarantor of any liability hereunder, and shall not impair or affect the rights and remedies, whether express, implied or available as a matter of law, of the Collateral Agent and the other Foreign Obligations Secured Parties against such Foreign Obligations Guarantor.

 

(b)           This Guarantee shall remain in full force and effect and be binding in accordance with and to the extent of its terms upon each Foreign Obligations Guarantor and the successors and assigns thereof and shall inure to the benefit of the Collateral Agent and the other Foreign Obligations Secured Parties and their respective successors, indorsees, transferees and assigns until all Foreign Obligations (other than any contingent indemnity obligations not then due) shall have been satisfied by payment in full, the Commitments thereunder shall be terminated and no Spanish Letters of Credit thereunder shall be outstanding (except to the extent that the Spanish Letters of Credit have been Cash Collateralized, otherwise collateralized with “back to back” letters of credit or otherwise supported on terms satisfactory to the Collateral Agent), notwithstanding that from time to time during the term of the Credit Agreement and any Foreign Obligations Secured Hedge Agreement the Credit Parties may be free from any Foreign Obligations.

 

(c)           A Foreign Obligations Guarantor shall automatically be released from its obligations hereunder and the Guarantee of such Foreign Obligations Guarantor shall be automatically released under the circumstances described in Section 14.1 of the Credit Agreement.

 

8.             Reinstatement.  This Guarantee shall continue to be effective, or be reinstated, as the case may be, if at any time payment, or any part thereof, of any of the Foreign Obligations is rescinded or must otherwise be restored or returned by the Collateral Agent or any other Foreign Obligations Secured Party upon the insolvency, bankruptcy, dissolution, liquidation or reorganization of the Parent Borrower or any Foreign Obligations Guarantor, or upon or

 

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as a result of the appointment of a receiver, intervenor or conservator of, or trustee or similar officer for, the Parent Borrower or any Foreign Obligations Guarantor or any substantial part of its property, or otherwise, all as though such payments had not been made.

 

9.             Payments.  Each Foreign Obligations Guarantor hereby guarantees that payments hereunder will be paid to the Collateral Agent without set-off or counterclaim in Dollars (based on the Dollar Equivalent amount of such Foreign Obligations on the date of payment) at the Collateral Agent’s Office.  Each Foreign Obligations Guarantor agrees that the provisions of Sections 5.4 and 14.19 of the Credit Agreement shall apply to such Foreign Obligations Guarantor’s obligations under this Guarantee.

 

10.          Representations and Warranties; Covenants.

 

(a)           Each Foreign Obligations Guarantor hereby represents and warrants that the representations and warranties set forth in Section 8 of the Credit Agreement as they relate to such Foreign Obligations Guarantor and in the other Credit Documents to which such Foreign Obligations Guarantor is a party, each of which is hereby incorporated herein by reference, are true and correct in all material respects as of the Closing Date (except where such representations and warranties expressly relate to an earlier date, in which case such representations and warranties were true and correct in all material respects as of such earlier date), and the Collateral Agent and each other Foreign Obligations Secured Party shall be entitled to rely on each of them as if they were fully set forth herein.

 

(b)           Each Foreign Obligations Guarantor hereby covenants and agrees with the Collateral Agent and each other Foreign Obligations Secured Party that, from and after the date of this Guarantee until the Foreign Obligations are paid in full, the Commitments are terminated and no Spanish Letter of Credit remains outstanding or the Spanish Letters of Credit Outstanding have been Cash Collateralized, otherwise collateralized with “back to back” letters of credit or otherwise supported on terms satisfactory to the Collateral Agent, such Foreign Obligations Guarantor shall take, or shall refrain from taking, as the case may be, all actions that are necessary to be taken or not taken so that no violation of any provision, covenant or agreement contained in Section 9 or Section 10 of the Credit Agreement and so that no Default or Event of Default, is caused by any act or failure to act of such Foreign Obligations Guarantor or any of its Subsidiaries.

 

11.          Authority of the Collateral Agent.

 

(a)           The Collateral Agent enters into this Guarantee in its capacity as agent for the Foreign Obligations Secured Parties from time to time. The rights and obligations of the Collateral Agent under this Guarantee at any time are the rights and obligations of the Foreign Obligations Secured Parties at that time. Each of the Foreign Obligations Secured Parties has (subject to the terms of the Credit Documents) a several entitlement to each such right, and a several liability in respect of each such obligation, in the proportions described in the Credit Documents. The rights, remedies and discretions of the Foreign Obligations Secured Parties, or any of them, under this Guarantee may be exercised by the Collateral Agent. No party to this Guarantee is obliged to inquire whether an exercise by the Collateral Agent of any such right,

 

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remedy or discretion is within the Collateral Agent’s authority as agent for the Foreign Obligations Secured Parties.

 

(b)           Each party to this Guarantee acknowledges and agrees that any changes (in accordance with the provisions of the Credit Documents) in the identity of the persons from time to time comprising the Foreign Obligations Secured Parties gives rise to an equivalent change in the Foreign Obligations Secured Parties, without any further act. Upon such an occurrence, the persons then comprising the Foreign Obligations Secured Parties are vested with the rights, remedies and discretions and assume the obligations of the Foreign Obligations Secured Parties under this Guarantee. Each party to this Guarantee irrevocably authorizes the Collateral Agent to give effect to the change in Lenders contemplated in this Section 11(b) by countersigning an Assignment and Acceptance.

 

(c)           Each Foreign Obligations Guarantor acknowledges and agrees that it has adequate means to obtain information from the Parent Borrower and each other Foreign Obligations Guarantor on a continuing basis concerning the financial condition of the Parent Borrower and each other Foreign Obligations Guarantor and its ability to perform its obligations under the Credit Agreement, the other Credit Documents and any Foreign Obligations Secured Hedge Agreement, and each Foreign Obligations Guarantor assumes the responsibility of keeping informed of the financial condition of the Parent Borrower and each other Foreign Obligations Guarantor and all circumstances bearing upon the risk of nonpayment of the Parent Borrower and each other Foreign Obligations Guarantor. Each Foreign Obligations Guarantor hereby waives and relinquishes any duty on the part of the Collateral Agent to disclose any matter, fact or thing related to the Parent Borrower and each other Foreign Obligations Guarantor whether now or hereafter known.

 

12.          Notices. All notices, requests and demands pursuant hereto shall be made in accordance with Section 14.2 of the Credit Agreement. All communications and notices hereunder to any Foreign Obligations Guarantor shall be given to it in care of the Parent Borrower at the Parent Borrower’s address set forth in Section 14.2 of the Credit Agreement.

 

13.          Counterparts.  This Guarantee may be executed by one or more of the parties to this Guarantee on any number of separate counterparts (including by facsimile or other electronic transmission), and all of said counterparts taken together shall be deemed to constitute one and the same instrument. A set of the copies of this Guarantee signed by all the parties shall be lodged with the Collateral Agent and the Parent Borrower.

 

14.          Severability. Any provision of this Guarantee that is prohibited or unenforceable in any jurisdiction shall, as to such jurisdiction, be ineffective to the extent of such prohibition or unenforceability without invalidating the remaining provisions hereof, and any such prohibition or unenforceability in any jurisdiction shall not invalidate or render unenforceable such provision in any other jurisdiction.  The parties hereto shall endeavor in good-faith negotiations to replace the invalid, illegal or unenforceable provisions with valid provisions the economic effect of which comes as close as possible to that of the invalid, illegal or unenforceable provisions.

 

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15.                               Integration. This Guarantee together with the other Credit Documents and each other document in respect of any Foreign Obligations Secured Hedge Agreement represent the agreement of each Foreign Obligations Guarantor and the Collateral Agent with respect to the subject matter hereof, and there are no promises, undertakings, representations or warranties by the Collateral Agent or any other Foreign Obligations Secured Party relative to the subject matter hereof not expressly set forth or referred to herein, in the other Credit Documents or, each other document in respect of any Foreign Obligations Secured Hedge Agreement.

 

16.                               Amendments in Writing; No Waiver; Cumulative Remedies.

 

(a)                                 None of the terms or provisions of this Guarantee may be waived, amended, supplemented or otherwise modified except in accordance with Section 14.1 of the Credit Agreement.

 

(b)                                 Neither the Collateral Agent nor any other Foreign Obligations Secured Party shall by any act (except by a written instrument pursuant to Section 16(a)), delay, indulgence, omission or otherwise be deemed to have waived any right or remedy hereunder or to have acquiesced in any Default or Event of Default or in any breach of any of the terms and conditions hereof.  No failure to exercise, nor any delay in exercising, on the part of the Collateral Agent or any other Foreign Obligations Secured Party, any right, power or privilege hereunder shall operate as a waiver thereof. No single or partial exercise of any right, power or privilege hereunder shall preclude any other or further exercise thereof or the exercise of any other right, power or privilege. A waiver by the Collateral Agent or any other Foreign Obligations Secured Party of any right or remedy hereunder on any one occasion shall not be construed as a bar to any right or remedy that the Collateral Agent or any Foreign Obligations Secured Party would otherwise have on any future occasion.

 

(c)                                  The rights, remedies, powers and privileges herein provided are cumulative, may be exercised singly or concurrently and are not exclusive of any other rights or remedies provided by law.

 

17.                               Section Headings. The Section headings used in this Guarantee are for convenience of reference only and are not to affect the construction hereof or be taken into consideration in the interpretation hereof.

 

18.                               Successors and Assigns. This Guarantee shall be binding upon the successors and assigns of each Foreign Obligations Guarantor and shall inure to the benefit of the Collateral Agent and the other Foreign Obligations Secured Parties and their respective successors and assigns except that no Foreign Obligations Guarantor may assign, transfer or delegate any of its rights or obligations under this Guarantee without the prior written consent of the Collateral Agent.

 

19.                               Additional Foreign Obligations Guarantors. Each Subsidiary of the Parent Borrower that is required to become a party to this Guarantee pursuant to Section 9.11 of the Credit Agreement shall become a Foreign Obligations Guarantor, with the same force and effect as if originally named as a Foreign Obligations Guarantor herein, for all purposes of this

 

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Guarantee, upon execution and delivery by such Subsidiary of a written supplement substantially in the form of Annex A hereto. The execution and delivery of any instrument adding an additional Foreign Obligations Guarantor as a party to this Guarantee shall not require the consent of any other Foreign Obligations Guarantor hereunder. The rights and obligations of each Foreign Obligations Guarantor hereunder shall remain in full force and effect notwithstanding the addition of any new Foreign Obligations Guarantor as a party to this Guarantee (and any such assignment without such consent shall be null and void).

 

20.                               WAIVER OF JURY TRIAL.  EACH FOREIGN OBLIGATIONS GUARANTOR HEREBY IRREVOCABLY AND UNCONDITIONALLY WAIVES TRIAL BY JURY IN ANY LEGAL ACTION OR PROCEEDING RELATING TO THIS GUARANTEE, ANY OTHER CREDIT DOCUMENT AND FOR ANY COUNTERCLAIM THEREIN.

 

21.                               Submission to Jurisdiction; Waivers; Service of Process.  Each Foreign Obligations Guarantor hereby irrevocably and unconditionally:

 

(a)                                 submits for itself and its property in any legal action or proceeding relating to this Guarantee and the other Credit Documents to which it is a party, or for recognition and enforcement of any judgment in respect thereof, to the non-exclusive general jurisdiction of the courts of the State of New York, the courts of the United States of America for the Southern District of New York and appellate courts from any thereof;

 

(b)                                 consents that any such action or proceeding may be brought in such courts and waives any objection that it may now or hereafter have to the venue of any such action or proceeding in any such court or that such action or proceeding was brought in an inconvenient court and agrees not to plead or claim the same;

 

(c)                                  agrees that service of process in any such action or proceeding may be effected by mailing a copy thereof by registered or certified mail (or any substantially similar form of mail), postage prepaid, to such Foreign Obligations Guarantor in care of the Parent Borrower at the Parent Borrower’s address set forth in the Credit Agreement, and such Person hereby irrevocably authorizes and directs the Parent Borrower to accept such service on its behalf;

 

(d)                                 agrees that nothing herein shall affect the right of the Collateral Agent or any other Foreign Obligations Secured Party to effect service of process in any other manner permitted by law or shall limit the right of the Collateral Agent or any other Foreign Obligations Secured Party to sue in any other jurisdiction; and

 

(e)                                  waives, to the maximum extent not prohibited by law, any right it may have to claim or recover in any legal action or proceeding referred to in this Section 21 any special, exemplary, punitive or consequential damages.

 

22.                               GOVERNING LAW.  THIS GUARANTEE AND THE RIGHTS AND OBLIGATIONS OF THE PARTIES HEREUNDER SHALL BE GOVERNED BY,

 

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AND CONSTRUED AND INTERPRETED IN ACCORDANCE WITH, THE LAW OF THE STATE OF NEW YORK.

 

[Signature pages follow]

 

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IN WITNESS WHEREOF, each of the undersigned has caused this Guarantee to be duly executed and delivered by its duly authorized officer or other representative as of the day and year first above written.

 

	
 
    	
LAUREATE EDUCATION, INC., as a Foreign Obligations   Guarantor
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
By:
    	
/s/ Robert W. Zentz
    
	
 
    	
 
    	
Name:
    	
Robert W. Zentz
    
	
 
    	
 
    	
Title:
    	
Senior Vice President, General Counsel
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
ICE INVERSIONES BRAZIL, SL, as a Foreign Obligations   Guarantor
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
By:
    	
/s/ Robert W. Zentz
    
	
 
    	
 
    	
Name:
    	
Robert W. Zentz
    
	
 
    	
 
    	
Title:
    	
Sole Director
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
INVERSIONES EN EDUCATION LIMITADA, as a Foreign   Obligations Guarantor
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
By:
    	
/s/ Robert W. Zentz
    
	
 
    	
 
    	
Name:
    	
Robert W. Zentz
    
	
 
    	
 
    	
Title:
    	
Sole Director
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
LAUREATE EDUCATION MEXICO, S. DE R.L. DE C.V., as a   Foreign Obligations Guarantor
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
By:
    	
/s/ Robert W. Zentz
    
	
 
    	
 
    	
Name:
    	
Robert W. Zentz
    
	
 
    	
 
    	
Title:
    	
Authorized Representative
    

 

 

	
 
    	
LAUREATE EDUCATION PERU S.R.L., as a Foreign   Obligations Guarantor
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
By:
    	
/s/ Robert W. Zentz
    
	
 
    	
 
    	
Name:
    	
Robert W. Zentz
    
	
 
    	
 
    	
Title:
    	
Authorized Representative
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
LAUREATE HONDURAS S. DE R.L. DE C.V., as a Foreign   Obligations Guarantor
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
By:
    	
/s/ Robert W. Zentz
    
	
 
    	
 
    	
Name:
    	
Robert W. Zentz
    
	
 
    	
 
    	
Title:
    	
Authorized Representative
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
LAUREATE I BV, as a Foreign Obligations Guarantor
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
By:
    	
/s/ Robert W. Zentz
    
	
 
    	
 
    	
Name:
    	
Robert W. Zentz
    
	
 
    	
 
    	
Title:
    	
Managing Director
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
LAUREATE INTERNATIONAL BV, as a Foreign Obligations   Guarantor
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
By:
    	
/s/ Robert W. Zentz
    
	
 
    	
 
    	
Name:
    	
Robert W. Zentz
    
	
 
    	
 
    	
Title:
    	
Managing Director
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
LAUREATE INTERNATIONAL COSTA RICA, SRL, as a Foreign   Obligations Guarantor
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
By:
    	
/s/ Robert W. Zentz
    
	
 
    	
 
    	
Name:
    	
Robert W. Zentz
    
	
 
    	
 
    	
Title:
    	
Authorized Representative
    

 

 

	
 
    	
LIUF, SAS, as a Foreign Obligations Guarantor
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
By:
    	
/s/ Robert W. Zentz
    
	
 
    	
 
    	
Name:
    	
Robert W. Zentz
    
	
 
    	
 
    	
Title:
    	
Authorized Representative
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
ONLINE HIGHER EDUCATION BV, as a Foreign Obligations   Guarantor
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
By:
    	
/s/ Robert W. Zentz
    
	
 
    	
 
    	
Name:
    	
Robert W. Zentz
    
	
 
    	
 
    	
Title:
    	
Managing Director
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
LAUREATE PANAMA, S.A., as a Foreign Obligations   Guarantor
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
By:
    	
/s/ Robert W. Zentz
    
	
 
    	
 
    	
Name:
    	
Robert W. Zentz
    
	
 
    	
 
    	
Title:
    	
Authorized Representative
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
LAUREATE CHILE LIMITADA, as a Foreign Obligations   Guarantor
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
By:
    	
/s/ Robert W. Zentz
    
	
 
    	
 
    	
Name:
    	
Robert W. Zentz
    
	
 
    	
 
    	
Title:
    	
Authorized Representative
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
INICIATIVAS CULTURALES DE ESPAÑA S.L., as a Foreign   Obligations Guarantor with respect to Foreign Obligations of any Credit Party   other than the Foreign Subsidiary Borrower
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
By:
    	
/s/ Robert W. Zentz
    
	
 
    	
 
    	
Name:
    	
Robert W. Zentz
    
	
 
    	
 
    	
Title:
    	
Sole Director
    

 

 

	
 
    	
GOLDMAN SACHS CREDIT PARTNERS L.P., as Collateral   Agent
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
By:
    	
/s/ Bruce H. Mendelsohn
    
	
 
    	
 
    	
Name:
    	
Bruce H. Mendelsohn
    
	
 
    	
 
    	
Title:
    	
Authorized Signatory
    

 

Laureate Education, Inc. – Foreign Obligations GuaranteeExhibit 10.20

 

 

CREDIT AGREEMENT

 

 

DEED OF

PLEDGE OF RECEIVABLES

 

DATED August 17, 2007

 

between

 

LAUREATE EDUCATION, INC.

 

as Pledgor

 

and

 

GOLDMAN SACHS CREDIT PARTNERS L.P.

 

as Pledgee

 

 

 

INDEX

 

	
Clause
    	
 
    	
 
    	
page
    
	
 
    	
 
    	
 
    	
 
    
	
1.
    	
DEFINITIONS
    	
 
    	
1
    
	
 
    	
 
    	
 
    	
 
    
	
2.
    	
UNDERTAKING TO PLEDGE
    	
 
    	
3
    
	
 
    	
 
    	
 
    	
 
    
	
3.
    	
PLEDGE OF RECEIVABLES
    	
 
    	
3
    
	
 
    	
 
    	
 
    	
 
    
	
4.
    	
PERFECTION AND   NOTIFICATION OF RIGHT OF PLEDGE
    	
 
    	
4
    
	
 
    	
 
    	
 
    	
 
    
	
5.
    	
CONTINUING AND   ADDITIONAL SECURITY
    	
 
    	
5
    
	
 
    	
 
    	
 
    	
 
    
	
6.
    	
REPRESENTATIONS AND   WARRANTIES
    	
 
    	
5
    
	
 
    	
 
    	
 
    	
 
    
	
7.
    	
UNDERTAKINGS
    	
 
    	
6
    
	
 
    	
 
    	
 
    	
 
    
	
8.
    	
ENFORCEMENT
    	
 
    	
8
    
	
 
    	
 
    	
 
    	
 
    
	
9.
    	
FURTHER ASSURANCES
    	
 
    	
8
    
	
 
    	
 
    	
 
    	
 
    
	
10.
    	
POWER OF ATTORNEY AND   NO WAIVER
    	
 
    	
9
    
	
 
    	
 
    	
 
    	
 
    
	
11.
    	
TERMINATION
    	
 
    	
10
    
	
 
    	
 
    	
 
    	
 
    
	
12.
    	
SUCCESSORS AND ASSIGNS   AND RE-PLEDGE
    	
 
    	
10
    
	
 
    	
 
    	
 
    	
 
    
	
13.
    	
WAIVER
    	
 
    	
10
    
	
 
    	
 
    	
 
    	
 
    
	
14.
    	
COSTS
    	
 
    	
11
    
	
 
    	
 
    	
 
    	
 
    
	
15.
    	
EVIDENCE OF DEBT
    	
 
    	
11
    
	
 
    	
 
    	
 
    	
 
    
	
16.
    	
LIABILITY
    	
 
    	
11
    
	
 
    	
 
    	
 
    	
 
    
	
17.
    	
NOTICES
    	
 
    	
11
    
	
 
    	
 
    	
 
    	
 
    
	
18.
    	
SEVERABILITY
    	
 
    	
12
    
	
 
    	
 
    	
 
    	
 
    
	
19.
    	
AMENDMENT AND   EMBODIMENT
    	
 
    	
13
    
	
 
    	
 
    	
 
    	
 
    
	
20.
    	
COUNTERPARTS
    	
 
    	
13
    
	
 
    	
 
    	
 
    	
 
    
	
21.
    	
ACCEPTANCE
    	
 
    	
13
    
	
 
    	
 
    	
 
    	
 
    
	
22.
    	
GOVERNING LAW
    	
 
    	
13
    
	
 
    	
 
    	
 
    	
 
    
	
23.
    	
JURISDICTION
    	
 
    	
13
    

 

ii

 

Execution Copy

 

THIS DEED OF PLEDGE OF RECEIVABLES DATED August 17, 2007 is made between:

 

(1)                                 Goldman Sachs Credit Partners L.P., a limited partnership formed under the laws of Bermuda, with its registered office at 85 Broad Street, New York, New York 10004, United States of America, and its business address at 85 Broad Street, New York, New York 10004, United States of America (the “Pledgee”); and

 

(2)                                 Laureate Education, Inc., a company incorporated under the laws of the State of Maryland, having its registered offices at 1001 Fleet Street, Baltimore, Maryland 21202, United States of America (the “Pledgor”).

 

WHEREAS

 

(A)                               The Pledgee, the Pledgor and inter alia Iniciativas Culturales de España, S.L. (the “Obligor”) have entered into a Credit Agreement (the “Credit Agreement”) dated August 17, 2007 pursuant to which the Lenders (as defined in the Credit Agreement) have inter alia extended Loans to the Pledgor and the Obligor in the maximum principal amount of USD.1,250,000,000 and New Loan Commitments in the maximum amount of USD 300,000,000.

 

(B)                               Pursuant to Section 15 of the Credit Agreement, the Pledgor and the Obligor have undertaken to pay to the Pledgee, acting in its own capacity and not as representative or agent of the Lenders, the Parallel Debt (as defined in the Credit Agreement).

 

(C)                               The Pledgor has agreed to create a first priority disclosed right of pledge (openbaar pandrecht eerste in rang) over the Receivables (as defined hereinafter) in favor of the Pledgee as security for the Secured Obligations (as defined hereinafter).

 

NOW THEREFORE IT IS AGREED AS FOLLOWS:

 

1.                                      DEFINITIONS

 

1.1                               In this Deed:

 

“C.V.” means Fleet Street International Universities C.V., a limited partnership (commanditaire vennootschap)  formed under the laws of the Netherlands and having its registered offices at Amsterdijk 166, Box 42, 1079 LH Amsterdam, the Netherlands, dated August 17, 2006.

 

“Deed” means this agreement and deed of pledge of receivables.

 

“Enforcement Event” means a default by the Pledgor and/or the Obligor in the proper performance of the Secured Obligations (whether in whole or in part) provided that such default constitutes an Event of Default.

 

 

“Receivables” means any and all rights and claims (vorderingsrechten)  (including but not limited to a right of recourse (regres)  or subrogation (subrogatie))  whether present or future, whether actual or contingent, of the Pledger against the C.V.

 

“Right of Pledge” means each right of pledge created by this Deed in accordance with Clause 3 (Pledge of Receivables).

 

“Secured Obligations” means any and all obligations and liabilities consisting of monetary payment obligations (verbintenissen tot betaling van een geldsom)  of the Pledgor and/or the Obligor to the Pledgee, whether present or future, whether actual or contingent, whether as primary obligor or as surety, whether for principal, interest or costs under or in connection with:

 

(a)                                 this Deed;

 

(b)                                 the Credit Documents;

 

(c)                                  all obligations secured by the U.S. Obligations Security Documents (as defined in the Credit Agreement); and

 

(d)                                 the Parallel Debt.

 

1.2                               Save where the contrary is indicated, a reference in this Deed to:

 

(a)                                 the “Pledgee”, the “Pledgor” or the “Obligor” shall be construed so as to include its or their respective successors, transferees and assignees from time to time and any successor of such a successor, transferee or assignee in accordance with their respective interests, all in accordance with the Credit Agreement and this Deed;

 

(b)                                 this “Deed” or the “Credit Agreement” or any other agreement or document shall be construed to be a reference to this Deed or the Credit Agreement or such other agreement or document as the same may be amended, supplemented, restated, novated or otherwise modified from time to time;

 

(c)                                  a “Clause” or a “Schedule” shall, subject to any contrary indication, be construed as a reference to a clause or a schedule of this Deed; and

 

(d)                                 a “person” shall be construed as a reference to any person, firm, company, corporation, body corporate, institution, government, state or agency of a state or any association or partnership (whether or not having separate legal personality) of two or more of the foregoing.

 

1.3                               Capitalized words and expressions used but not defined in this Deed shall have the same meaning as in the Credit Agreement.

 

2

 

1.4                               The titles and headings of the Clauses are for convenience only and do not form part of this Deed and shall in no way affect the interpretation thereof.

 

1.5                               In this Deed words and expressions importing the singular shall, where the context permits or requires, include the plural and vice versa.

 

1.6                               Any reference in this Deed to a statute (including but not limited to the Dutch Civil Code) shall be construed as a reference to such statute as the same may have been, or may from time to time be, amended or re-enacted.

 

1.7                               Schedules form an integral part of this Deed.

 

1.8                               Any Event of Default shall constitute a verzuim (as meant in Section 6:81 and further of the Dutch Civil Code) and any Enforcement Event shall constitute a verzuim (as meant in Section 3:248 (1) in conjunction with Section 6:81 and further of the Dutch Civil Code) in the proper performance of the Secured Obligations or any part thereof, without any dun (aanmaning), summons (sommatie) or notice of default (ingebrekestelling)  being sent or required.

 

2.                                      UNDERTAKING TO PLEDGE

 

The Pledgor agrees with the Pledgee and undertakes to create or, as the case may be, to create in advance (bij voorbaat)  a first priority disclosed right of pledge (openbaar pandrecht eerste in rang)  over all Receivables as security for the Secured Obligations.

 

3.                                      PLEDGE OF RECEIVABLES

 

3.1                               The Pledgor grants to the Pledgee:

 

(a)                                 a first priority disclosed right of pledge (openbaar pandrecht eerste in rang)  over (i) its Receivables which exist at the date of registration of this Deed with respect to the Foreign Obligations, and (ii) sixty-five percent (65%) of its Receivables with respect to the U.S. Obligations; and

 

(b)                                 to the extent the Receivables consist of future Receivables a first priority disclosed right of pledge (openbaar pandrecht eerste in rang)  is granted in advance (bij voorbaat)  over (i) all future Receivables with respect to the Foreign Obligations, and (ii) sixty-five percent (65%) of all future Receivables with respect to the U.S. Obligations,

 

as security for the Secured Obligations.

 

3.2                               The Right of Pledge includes all accessory rights (afhankelijke rechten)  and all ancillary rights (nevenrechten)  attached to the Receivables.

 

3

 

3.3                               To the extent that the Receivables are (or shall be) subject to an encumbrance or right of pledge taking priority over the Right of Pledge, nevertheless the Right of Pledge will have been (or will be) created with the highest possible rank available at that time.

 

3.4                               By signing this Deed for acknowledgement, the C.V. acknowledges to have been duly informed of the Right of Pledge created on the Receivables pursuant to this Deed within the meaning of Section 3:94 juncto Section 3:236 of the Dutch Civil Code.

 

3.5                               By signing this Deed for acknowledgment, each of Laureate Education International Limited, and Fleet Street International Universities Holdings LLC, in their capacity as partner of the C.V. and together with the Pledgor constituting all partners of the C.V., confirm their prior consent to the creation of the Right of Pledge on the Receivables.

 

4.                                      PERFECTION AND NOTIFICATION OF RIGHT OF PLEDGE

 

4.1                               The Pledgee is entitled:

 

(a)                                 to present this Deed and any other document pursuant to this Deed for registration to any office, registrar or governmental body (including the Dutch tax authorities) in any jurisdiction; and

 

(b)                                 to serve any notice to the C.V. or any other person,

 

as the Pledgee deems necessary or desirable to protect its interests.

 

4.2                               Upon the occurrence of an Event of Default, the Pledgee is authorized to serve notice of the Right of Pledge to the C.V. or to instruct the Pledgor to serve such notices, substantially in the form as set out in Schedule 1 (Form of Notice of Pledge).

 

4.3                               Upon notification of the Right of Pledge to the C.V., the Pledgee is, in accordance with Section 3:246 (1) of the Dutch Civil Code, entitled to collect and receive payment of the Receivables which are subject to the Right of Pledge and to exercise all rights of the Pledgor vis-à-vis the C.V. insofar as such rights relate to the Receivables.

 

4.4                               If the C.V. makes any payment to the Pledgor in respect of the Receivables, after it has been notified by the Pledgee, the Pledgor shall immediately transfer to the Pledgee a sum equal to the amount paid by the C.V. concerned, without prejudice to any remedy which the Pledgee may otherwise have vis-à-vis the C.V. or the Pledgor.

 

4.5                               Upon the occurrence of an Enforcement Event, the Pledgee shall have the right to enter into court compositions or out-of-court compositions (gerechtelijke of buitengerechtelijke akkoorden)  and to cast a vote in connection with such compositions or to or enter into any settlement agreement regarding the Receivables with the C.V. or any other person.

 

4

 

5.                                      CONTINUING AND ADDITIONAL SECURITY

 

5.1                               The Right of Pledge is one and indivisible (één en ondeelbaar) , and shall (unless released pursuant to Clause 11 (Termination)) remain in full force and effect, shall not be satisfied by any intermediate payment or satisfaction of any part of the Secured Obligations or by any settlement of accounts and the Pledgee shall not have any obligation to relinquish the Right of Pledge, until all of the Secured Obligations have been irrevocably and unconditionally paid in full.

 

5.2                               To the extent possible under Dutch law, the Right of Pledge shall not in any way be prejudiced by or be dependent on any collateral or other security now or hereafter held by the Pledgee as security for the Secured Obligations or any lien to which it may be entitled (whether by contract or statute). The rights of the Pledgee hereunder are in addition to and not in lieu of those provided by law.

 

6.                                      REPRESENTATIONS AND WARRANTIES

 

6.1                               The Pledgor represents and warrants, on the date of this Deed and on each date of a drawdown by the Obligor under the Credit Agreement, for the benefit of the Pledgee that:

 

(a)                                 it is a company duly incoporated and validly existing under the State of Maryland, United States of America, having its registered offices at 1001 Fleet Street, Baltimore, Maryland 21202, United States of America;

 

(b)                                 all authorizations required (including all necessary corporate authorizations) in connection with the entry into, performance, validity and enforceability of, and the transactions contemplated by, this Deed have been obtained or effected (as appropriate) and are in full force and effect;

 

(c)                                  the execution, delivery and performance of this Deed and the granting of the Right of Pledge do not and will not contravene:

 

(i)                                     any law, rule or regulation or any judgment, decree or order of any tribunal; or

 

(ii)                                  any provision of its organizational documents or other constitutional document; or

 

(iii)          any agreement or instrument which is binding upon the Pledgor or to which any of its assets is bound or affected or constitute a default thereunder;

 

(d)                                 it has not taken any corporate action nor have any other steps has been or legal proceedings been started or (to the best of its knowledge and belief) threatened against it for its winding-up, dissolution, administration or reorganization or for

 

5

 

the appointment of a bankruptcy trustee, administrator or similar officer of it or of any or all of its assets or revenues in any jurisdiction;

 

(e)                                  it holds full and exclusive title (titel)  to the Receivables and has the authority and the power to create the Right of Pledge;

 

(f)                                   the Right of Pledge is a first ranking right of pledge (pandrecht eerste in rang);

 

(g)                                  the Receivables:

 

(i)            have, save for the Right of Pledge, not been encumbered with limited rights (beperkte rechten)  or otherwise;

 

(ii)                                  are not subject to any attachment (beslag);

 

(iii)          have not been transferred or, save for the Right of Pledge, encumbered in advance (bij voorbaat)  to any third party;

 

(iv)                              are capable of being transferred, assigned and encumbered with limited rights (beperkte rechten);  and

 

(v)                                 are not subject to any option or similar right;

 

(h)                                 save for the Right of Pledge, the Pledgor has not agreed to grant any right or to do such acts as set forth in Clause 6.1 (g) in respect of the Receivables; and

 

(i)                                     it has provided the Pledgee with all information and documentation regarding the Receivables, which the Pledgor understands or should be aware is important to the Pledgee.

 

7.                                      UNDERTAKINGS

 

7.1                               The Pledgor undertakes not to waive without the prior written consent of the Pledgee any accessory rights (afhankelijke rechten)  or ancillary rights (nevenrechten)  attached to the Receivables and in general not to perform any act which adversely affects or may adversely affect the Receivables.

 

7.2                               The Pledgor shall not without the prior written consent of the Pledgee:

 

(a)                                 assign, transfer, pledge or otherwise encumber, release (kwijtschelden)  or waive (afstand doen van)  any rights over, the Receivables; or

 

(b)                                 agree with a court composition or an out-of-court composition (gerechtelijk of buitengerechtelijk akkoord)  or enter into any settlement agreement in respect of the Receivables.

 

6

 

7.3                               The Pledgor shall promptly inform the Pledgee of an occurrence of an event that may be relevant to the Pledgee with respect to the Receivables or adversely affects or may adversely affect the Right of Pledge or the ability of the Pledgor to perform the Secured Obligations, including but not limited to the occurrence of:

 

(a)                                 an attachment (beslag)  of the Receivables;

 

(b)                                 a filing of a request to declare the Pledgor bankrupt or a filing of a request is filed for a similar proceeding in any jurisdiction;

 

(c)                                  a filing by the Pledgor of a request to be granted a suspension of payments or a filing by the Pledgor of a request for a similar proceeding in any jurisdiction;

 

(d)                                 the liquidation or dissolution of the Pledgor or the Pledgor ceasing to carry on the whole or a part of its business; or

 

(e)                                  the Pledgor becoming aware that any of the representations and warranties set forth in Clause 6 (Representations and Warranties) is or proves to have been incorrect or incomplete or misleading.

 

7.4                               Upon the occurrence of an event referred to in Clause 7.3, the Pledgor shall promptly notify in writing, at its own costs, the existence of this Deed and the Right of Pledge to:

 

(a)                                 a third party or the court process server (deurwaarder)  acting on behalf of such third party making an attachment (beslag);

 

(b)                                 the bankruptcy trustee (curator), administrator (bewindvoerder)  or similar officer in any jurisdiction; or

 

(c)                                  any other relevant person, 

 

as the case may be.

 

7.5                               The Pledgor shall promptly send to the Pledgee a copy of the relevant documentation in respect of an event referred to in Clause 7.3 and a copy of any correspondence pursuant to Clause 7.4.

 

7.6                               The Pledgor shall at the Pledgee’s first request provide the Pledgee with all information and with copies of all relevant documentation relating to the Receivables and allow the Pledgee to inspect its administrative records to verify the balances outstanding on any or all of the Receivables and/or to instruct the Pledgor’s independent accountant so to verify.

 

7.7                               The Pledgor shall receive all payments of a Debtor in respect of the Receivables in a bank account opened with the Pledgee or in a bank account over which a valid security interest is created in favor of the Pledgee.

 

7

 

8.                                      ENFORCEMENT

 

8.1                               Upon the occurrence of an Enforcement Event, the Pledgee shall have the right to enforce the Right of Pledge in accordance with Dutch law and any other applicable law and may take all (legal) steps and measures which it deems necessary or desirable and the Pledgor shall co-operate with the Pledgee in any way which the Pledgee deems necessary or desirable for the enforcement of the Right of Pledge.

 

8.2                               The Pledges shall not be obliged to give notice of a sale of the Receivables to the Pledgor, the C.V., holders of a limited right (beperkt recht)  or persons who have made an attachment (beslag)  on the Receivables, as required by Sections 3:249 and·3:252 of the Dutch Civil Code.

 

8.3                               The Pledgor shall not be entitled to make a request to the court as referred to in Section 3:251(1) of the Dutch Civil Code to determine that the Receivables shall be sold in a manner deviating from the provisions of Section 3:250 of the Dutch Civil Code.

 

8.4                               The Pledgor shall not be entitled to demand that the Pledgee:

 

(a)                                 shall first enforce any security interests granted by any other person, pursuant to Section 3:234 of the Dutch Civil Code; or

 

(b)                                 to first proceed against or claim payment from any other person or enforce any guarantee, before enforcing this Right of Pledge.

 

The Pledgor waives its rights under Sections 3:233 (2) and 6:139 of the Dutch Civil Code.

 

8.5                               The Pledgor shall not be entitled to set-off (verrekenen) its claims (if any) against the Pledgee under or in connection with this Deed or the Credit Agreement against the Secured Obligations.

 

8.6                               Subject to the mandatory provisions of Dutch law on enforcement; all monies received or realized by the Pledgee in connection with the enforcement of the Right of Pledge shall be applied by the Pledgee in accordance with clause 5.3 of the Credit Agreement.

 

9.                                      FURTHER ASSURANCES

 

9.1                               If no valid right of pledge is created pursuant to this Deed in respect of the Receivables, the Pledgor irrevocably and unconditionally undertakes to pledge to the Pledgee the Receivables as soon as they become available for pledging, by way of supplementary agreements, supplemental deeds or other instruments on the same (or similar) terms of this Deed.

 

8

 

9.2                               The Pledgor further undertakes to execute any instrument, provide such assurances and do all acts and things as may be necessary or desirable for:

 

(a)                                 perfecting or protecting the security created (or intended to be created) by this Deed;

 

(b)                                 preserving or protecting any of the rights of the Pledgee under this Deed;

 

(c)                                  preserving or protecting the Pledgee’s interest in the Receivables;

 

(d)                                 ensuring that the Right of Pledge and the undertakings and obligations of the Pledgor under this Deed shall inure to the benefit of any assignee of the Pledgee;

 

(e)                                  facilitating the collection, appropriation or realization of the Receivables or any part thereof in the manner contemplated by this Deed in case of an Event of Default; or

 

(f)                                   the exercise of any power, authority or discretion vested in the Pledgee under this Deed.

 

9.3                               The Pledgor subordinates in favor of the Pledgee any rights which it may acquire by way of recourse or subrogation in connection with this Deed, until the Secured Obligations have been irrevocably and unconditionally been paid in full. If any amount shall be paid to the Pledgor on account of such recourse or subrogation rights at any time when any of the Secured Obligations are still outstanding, the Pledgor shall forthwith pay such amount to the Pledgee to apply such amount to the Secured Obligations in accordance with Clause 8.6 (Enforcement).

 

10.                               POWER OF ATTORNEY AND NO WAIVER

 

10.1                        The Pledgor, by way of security and in order to secure the performance by the Pledgor of its obligations under this Deed, irrevocably and unconditionally appoints the Pledgee as its attorney (gevolmachtigde)  for as long as any of the Secured Obligations are outstanding for the purposes of:

 

(a)                                 doing in its name all acts and executing, signing and (if required) registering in its name all documents which the Pledgor itself could do, execute, sign or register in relation to the Receivables; and

 

(b)                                 executing, signing, perfecting, doing and (if required) registering every such further document, act or thing as is referred to in Clause 9 (Further Assurances).

 

10.2                        It is expressly agreed that the appointment under Clause 10.1 will only be exercised

 

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by the Pledgee in case of an Event of Default and is given with full power of substitution and also applies to any situation where the Pledgee acts as the Pledgor’s counterparty (Selbsteintritt)  within the meaning of Section 3:68 of the Dutch Civil Code or as a representative of the Pledgor’s counterparty.

 

10.3                        No delay or omission by the Pledgee in the exercise of any power or right under this Deed will impair such power or right or be construed as a waiver thereof or of the event giving rise to such power of right and no waiver of any past event shall be construed to be a waiver of any power or right accruing to the Pledgee by reason of any future event.

 

11.                               TERMINATION

 

11.1                        Unless terminated by operation of law, the Right of Pledge shall be in full force and effect until the Pledgee has certified in writing to the Pledgor that all Secured Obligations have been fully, irrevocably and unconditionally repaid or discharged to its satisfaction.

 

11.2                        Upon termination of the Right of Pledge in accordance with Clause 11.1, the Pledgee shall, at the request and expense of the Pledgor, issue a notice of release to the Pledgor.

 

11.3                        The Pledgee is entitled to terminate by notice (opzeggen)  or waiver (afstand)  the Right of Pledge, in respect of all or part of the Receivables and all or part of the Secured Obligations.

 

12.                               SUCCESSORS AND ASSIGNS AND RE-PLEDGE

 

12.1                        This Deed shall be binding upon and shall inure to the benefit of the Pledgor and the Pledgee and their respective successors, transferees and assignees.

 

12.2                        The Pledgor shall not assign or transfer any of its rights and obligations under this Deed without the prior written consent of the Pledgee.

 

12.3                        The Pledgor irrevocably and unconditionally grants authority to the Pledgee to repledge (herverpanden)  the Receivables in accordance with Section 3:242 of the Dutch Civil Code.

 

13.                               WAIVER

 

The Pledgor waives, to the fullest extent permitted by law, its rights:

 

(a)                                 to dissolve (ontbinden)  this Deed in case of failure in the performance of one or more of the Pledgee’s obligations pursuant to Section 6:265 of the Dutch Civil Code or on any other ground;

 

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(b)                    to suspend (opschorten)  any of its obligations pursuant to Section 6:52 of the Dutch Civil Code or on any other ground; and

 

(c)                     to nullify (vernietigen)  this Deed pursuant to Section 6:228 of the Dutch Civil Code or on any other ground.

 

14.                               COSTS

 

All costs, charges and expenses in relation to the negotiation, preparation, administration, execution, perfection, preservation, protection, registration or enforcement of this Deed and the exercise and/or enforcement of any rights or powers hereunder·by the Pledgee shall be payable by the Pledgor in accordance with clause 14.5 of the Credit Agreement.

 

15.                               EVIDENCE OF DEBT

 

As to the existence and composition of the Secured Obligations, a written statement by the Pledgee made in accordance with its books shall constitute conclusive evidence (save for manifest error), it being understood that in the event of a  disagreement with respect thereto, the Pledgee shall be authorized to exercise its right of enforcement, with due observance of the obligation of the Pledgee to transfer all which afterwards would appear to be received by it in excess of its rights.

 

16.                               LIABILITY

 

Except for its gross negligence (grove nalatigheid)  or wilful misconduct (opzet), the Pledgee shall not be liable vis-à-vis the Pledgor for not (or not completely) collecting or recovering or selling the Receivables and/or any loss or damage resulting from any collecting or recovering or selling the Receivables or arising out of the exercise of or failure to exercise any of its powers under this Deed or for any other loss of any nature whatsoever in connection with the Receivables or this Deed. Should any such loss or damage occur, then the Pledgor shall fully indemnify the Pledgee therefor.

 

17.                               NOTICES

 

17.1                        Any notice or other communication in connection with this Deed required to be sent or given shall be sent in the English language by registered mail or by fax to the following addresses:

 

if to the Pledgor:

 

Laureate Education, Inc.
 1001 Fleet Street

Baltimore, Maryland 21202
 United States of America
 Facsimile: 410-843-8544

 

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Attn. Robert W. Zentz 

if to the Pledgee:

 

Goldman Sachs Credit Partners L.P.
 85 Broad Street

New York, New York 10004
 United States of America
 Facsimile: 212-357-4597
 Attn. Pedro Ramirez

With a copy to:

Anisha Malhotra and Stapanie Nagengast
 Facsimile: 212-902-3000

 

or to such other address or addresses as may from time to time be notified by the parties for such purpose.

 

17.2                        All documents provided under or in connection with this Deed must be:

 

(a)                                 in English; or

 

(b)                                 if not in English, and if so required by the Pledgee, accompanied by a English translation and, in this case, the English translation will prevail unless the document is a constitutional, statutory or other official document.

 

17.3                        If sent by registered mail, any notice or other communication sent by registered mail pursuant to this Deed shall be deemed to have been received by the party to whom it was addressed on the first Business Day after the day shown as the day of receipt by a return receipt. If sent by fax, it shall be deemed, in the absence of proof to the contrary, to have been received by the party to whom it was sent on the day of dispatch provided that the report generated by the sender’s facsimile machine shows that all pages of such notice, demand or other communications were properly transmitted to the recipients fax machine. Without prejudice to any other mode or service, any notice or any other communication shall be deemed to have been sufficiently served if sent to the addresses as set forth in Clause 17.1.

 

18.                               SEVERABILITY

 

18.1                        If a provision of this Deed is or becomes illegal, invalid or unenforceable in any jurisdiction that shall not affect:

 

(a)                                 the validity or enforceability in that jurisdiction of any other provision of this Deed; or

 

(b)                                 the validity or enforceability in other jurisdictions of that or any other provision of this Deed.

 

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18.2                        The Pledgor and the Pledgee agree that they will negotiate in good faith to replace any provision of this Deed which may be held unenforceable with a provision which is enforceable and which is as similar as possible in substance to the unenforceable provision.

 

19.                               AMENDMENT AND EMBODIMENT

 

This Deed shall not be amended, modified or rescinded except in writing when duly signed by authorized signatories of the Pledgor and the Pledgee. Any amendment, addendum and appendix so signed shall constitute part of this Deed.

 

20.                               COUNTERPARTS

 

This Deed may be executed in any number of counterparts, all of which taken together shall constitute one and the same instrument.

 

21.                               ACCEPTANCE

 

The Pledgee accepts the Right of Pledge and all stipulations, covenants, undertakings, waivers, authorities and powers pursuant to this Deed.

 

22.                               GOVERNING LAW

 

This Deed shall be governed by and construed in accordance with Dutch law.

 

23.                               JURISDICTION

 

The courts of Amsterdam, the Netherlands shall have exclusive jurisdiction to hear and determine any suit, action or proceedings, and to settle any disputes which might arise out of or in connection with this Deed, and, for such purposes, the Pledgor irrevocably and unconditionally submits, for the benefit of the Pledgee, to the jurisdiction of that court. The Pledgee, however, reserves the right to refer the matter to any other competent court in any jurisdiction, whether concurrently or not (to the extent permitted by law).

 

[SIGNATURE PAGE TO FOLLOW]

 

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IN WITNESS WHEREOF this Deed was signed on the data first written above in two (2) signed copies (each page initialled).

 

	
Pledgor
    	
 
    
	
 
    	
 
    
	
Laureate Education, Inc.
    	
 
    
	
 
    	
 
    
	
/s/ Robert W. Zentz
    	
 
    
	
Name:
    	
Robert W. Zentz
    	
 
    
	
Title:
    	
Sr. Vice   President, Secretary
    	
 
    
	
 
    	
 
    
	
 
    	
 
    
	
Pledgee
    	
 
    
	
 
    	
 
    
	
Goldman Sachs Credit Partners   L.P.
    	
 
    
	
 
    	
 
    
	
/s/ Bruce H. Mendelsohn
    	
 
    
	
Name: Bruce H. Mendelsohn
    	
 
    
	
Title: Authorized   Signatory
    	
 
    

 

 

	
Signed for acknowledgment
    	
 
    
	
 
    	
 
    
	
Fleet Street International   Universities C.V.
    	
 
    
	
 
    	
 
    
	
 
    	
 
    
	
/s/ Robert W. Zentz
    	
 
    
	
Name: Fleet Street International   University Holdings LLC
    	
 
    
	
Title:   General Partner
    	
 
    
	
 
    	
 
    
	
Name: Robert W. Zentz
    	
 
    
	
Title: Vice President
    	
 
    
	
 
    	
 
    
	
 
    	
 
    
	
Laureate Education   International Ltd.
    	
 
    
	
 
    	
 
    
	
 
    	
 
    
	
/s/ Robert   W. Zentz
    	
 
    
	
Name: Robert   W. Zentz
    	
 
    
	
Title: Vice   President
    	
 
    

 

 

	
Signed for acknowledgment
    	
 
    
	
 
    	
 
    
	
Fleet Street International University   Holdings LLC
    	
 
    
	
 
    	
 
    
	
/s/ Robert   W. Zentz
    	
 
    
	
Name: Robert   W. Zentz
    	
 
    
	
Title: Vice   President

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