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  Exhibit 10.21    
    

 
    CAMPUS MANAGEMENT CORP.
  SOFTWARE LICENSE AGREEMENT    
    

        This Software License Agreement ("Agreement") is made and entered into as of this day of February 2004 (the "Effective Date ") by and
between CAMPUS MANAGEMENT CORP., a Florida corporation with offices at 777 Yamato Road, Suite 400, Boca Raton, Florida 33431 ("CMC"), and
Bridgepoint Education Inc., an Arizona corporation with offices at 4350 E. Camelback Rd., # 240B Phoenix, Arizona 85018 ("Customer"). This Agreement shall include any mutually executed Addenda
(as defined herein), which shall be attached hereto and incorporated herein by reference. 

 
 

  RECITALS    
    

        WHEREAS, CMC develops certain campus administrative software for use by higher
education organizations and career schools; and 

        WHEREAS, Customer is a higher education institution or career school and desires to obtain a license to the software, subject to and in
accordance with the terms and conditions of this Agreement. 

        NOW, THEREFORE, in consideration of the mutual promises and covenants contained herein, the receipt and sufficiency of which is hereby
acknowledged by the parties hereto, the parties agree as follows: 

 
 

  AGREEMENT    
    

1.     DEFINITIONS.  

        In addition to any terms defined herein, the following is a list of defined terms used in this Agreement: 

        1.1    "Addendum" shall mean a mutually executed addendum, which amends this Agreement and is incorporated herein by reference. 

        1.2    "Ancillary Programs" means the third party software delivered with the Licensed Program and any related documentation. 

        1.3    "Active Student Record" or "ASR" shall mean the maximum number of
students enrolled in at least one course at any Campus using the Software, as well as any students on leave of absence. For purposes herein, such term shall not include: (a) students who have
graduated or (b) students who have dropped out (i.e., terminated studies and not on leave of absence). 

        1.4    "Campus" shall mean a unique identification code used for each group of Active Student Records contained in a database. 

        1.5    "Documentation" shall mean the Licensed Program user guides, reference manuals, job aides, installation materials and
other written or computer-generated materials provided by CMC to Customer hereunder. 

        1.6    "License Fees" shall mean the fees due to CMC for the Licensed Program, in accordance with the terms of this Agreement. 

        1.7    "Licensed Program" shall mean the object code version of CMC's commercially available software, known as
"Campus2000TM." The term shall also include subsequent updates and/or upgrades delivered to Customer pursuant to any applicable CampusCares" Software Support and Maintenance Agreement
entered into between Customer and CMC. 

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        1.8    "Source Code" shall mean those statements in a computer language, which when processed by a compiler, assembler or
interpreter, become executable by a computer. 

        1.9    "Supported System" means the minimum hardware, servers, workstations, platform and software that are required for
Customer to obtain, install and maintain in order for the Licensed Program to operate properly. 

2.     LICENSE GRANT AND RIGHT OF USE  

        2.1    License Grant.    CMC grants to Customer a perpetual, non-exclusive,
non-transferable license to install and use the Licensed Program, for its own internal business operations, subject to the terms and conditions herein. 

        (a)   Access
to and use of the Licensed Program may not exceed the maximum number of ASRs and Campuses for which Customer is licensed at any given time. The maximum number of
ASRs and Campuses licensed to Customer are as follows: 

 Number of Campus(es): One

							
	Institution

 
	 	Address

 
	 	Unique Database

Ref. Nos. 	 
	 Bridgepoint Education Inc. 
	 	350 E. Camelback Rd., # 240B

Phoenix, Arizona 85018	 	 	 	 

 Number of ASRs: 100  

        2.2    Delivery and installation.    Upon receipt of the signed License Agreement from
Customer and payment as required in Section 3.2 below, CMC will electronically transfer the Licensed Program to the computer server(s) residing on the Supported System, which server(s) shall be
located at Customer's address first set forth above or such other address as Customer may designate in writing (each the "Designated Server"). The Licensed Program shall be deemed accepted by Customer
upon delivery to the Designated Server. Customer acknowledges it is responsible to obtain, implement and maintain the Supported System at its own cost and expense. 

        2.3    Authorized Copies.    Customer may make and keep a single copy of the Licensed Software
solely for back up, disaster recovery or archival purposes, and a second copy to use for a test bed solely if the Customer has entered into a separate CampusCare Support and Services Agreement.
Customer may copy the Documentation, as reasonably required to operate the Licensed Program, for Customer's internal use only. 

        2.4    License Restrictions.    Customer may allow its contractors to access the Licensed
Program solely for purposes of using the Licensed Program on behalf of the Customer in the same manner contemplated hereunder, and provided such contractors have agreed in writing to be bound to
confidentiality obligations at least as protective as those set forth in Section 5 below. Customer shall not (and shall not permit any employee, contractor or other party to) use, copy,
sublicense, operate as a service bureau, rent, assign, transfer, modify, create derivative works, reverse engineer, decompile, disassemble, translate, or apply any procedure or process to the Licensed
Program in order to ascertain, derive, or appropriate the Source Code or any trade secret or process contained in the Licensed Program. Customer shall not alter or remove any proprietary notices,
graphics or text contained on or in the Licensed Program. Customer's rights in the Licensed Program will be limited to those expressly granted in this Agreement, and CMC reserves all rights and
licenses in and to the Licensed Program not expressly granted to Customer under this Agreement. Customer acknowledges that the Licensed Program will contain license keys and mechanisms intended to
ensure the user limits of the Licensed Program will not be exceeded. 

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        2.5    Intellectual Property.    The Licensed Program and Documentation, including, without
limitation, any and all related Source Code, object code, materials, designs, plans, techniques, methods, inventions, forms, formulas, and other works of authorship, and any extracts, derivatives,
modifications or enhancements to the foregoing, shall remain the sole and exclusive property of CMC, and CMC shall own and retain all right, title and interest in and to the foregoing under copyright,
trade secret, trademark, patent and other intellectual property laws. The Licensed Program may also include Ancillary Programs, in which third parties retain copyright and other proprietary rights.
Campus ManagementSM CampusCareSM, CampusLinkSM, CampusNetSM, Campus2000TM and related marks are trademarks of CMC, and CMC retains
all right, title and interest therein. 

3.     FEES, PAYMENT AND TAXES  

        3.1    Fees.    The License Fees for the number of licensed Campuses and ASRs, respectively,
as set forth in Section 2.1 above, shall be: 

						
	 [***]
	 	 	[***]	 
	 	 	 	 
	 [***]
	 	 	[***]	 
	 	 	 	 
	 [***]
	 	 	[***]	 
	 	 	 	 
	 	 TOTAL LICENSE FEES:
	 	 	[***]	 
	 	 	 	 

        3.2    Payment.    Customer agrees to pay the non-refundable License Fee in two
(2) installments. The first installment of [***] shall be delivered to CMC accompanied by an executed copy of this Agreement, and the second installment of
[***] shall be due and payable on May 17, 2004. 

        3.3    Other License Fees.    Customer shall be required to pay for all other License Fees
under any applicable Sales Order (as described in Section 4 below) prior to CMC's performance of any obligation under such Sales Order. 

        3.4    Terms.    CMC may assess a late fee on any past due amounts at the lesser of one
percent (1%) per month and the maximum interest rate allowed by law. This license is granted pursuant to an installment purchase contract. In the event Customer fails to timely make any installment
payment hereunder, the license granted shall immediately become void, lapse and be of no further force and effect. In such event, Customer agrees and acknowledges that CMC shall retain all payments as
liquidated damages, and the provisions of Section 6.2 shall apply. 

        3.5    Taxes.    All prices are quoted in U.S. dollars and all payments made by Customer under
this Agreement shall be made without any deduction or withholding for or on account of any sales, use, value-added, excise, property, or other taxes, duties or charges (collectively the "Taxes").
Customer acknowledges it is solely responsible for payment of such Taxes. If at any time CMC is required by law to collect any Taxes from Customer, then upon CMC's request, Customer shall immediately
pay such amounts in addition to the payments due under this Agreement. If at any time Customer is required by law to make any deduction or withholding from any payment due to CMC under the Agreement,
then the gross amount payable by Customer to CMC will be increased so that, after any such deduction or withholding for Taxes, the net amount received by CMC will not be less than it would have
received had no such deduction or withholding been required. Customer shall hold harmless and indemnify CMC from any and all Tax claims. If at any time CMC is required to pay any Taxes in any manner
connected with this Agreement, then Customer shall fully reimburse CMC within ten (10) days after CMC's delivery of an invoice setting forth the Taxes paid. This provision does not apply to
taxes based on CMC' s income, or any Taxes for which Customer is exempt, provided Customer has furnished CMC with a valid tax exemption certificate in a timely manner. 

[***] Confidential
portions of this document have been redacted and filed separately with the Commission. 

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4.     CHANGES  

        4.1    Sales Orders.    Customer may request to expand the license to the Licensed Program
granted in Section 2.1 above to include additional ASRs and/or Campuses by delivering an executed sales or purchase order to CMC. Any changes agreed upon by the parties shall be reduced to
writing in the form of a mutually executed Addendum. 

        4.2    Adjustments.    Customer understands and acknowledges that CMC reserves the right to
increase License Fees. Therefore, the Addendum shall require Customer to pay the then-current License Fees for all, but not less than all, of Customer's FTEs and ASRs licensed hereunder in
the aggregate, and not simply the difference between the original price and the then-current price. For example, if Customer originally purchased 1,000 ASRs, and subsequently Customer
desires to increase the number of ASRs to a total of 2,000, then the Addendum shall require, and Customer shall be obligated to pay, the then current License Fees for all 2,000 ASRs with credit for
previous payments. 

5.     CONFIDENTIALITY  

        5.1    Confidential Information.    Neither party nor any third party acting on its behalf,
will for any reason at any time use or disclose any proprietary information of the other party hereto, including, without limitation, relating to the processes, techniques, work practices, customers,
prospective customers, suppliers, vendors, business practices, strategies, business plans, financial data, marketing, third party licenses, products, machinery, apparatus, proprietary information or
trade secrets of the other party hereto (collectively the "Confidential Information"). In addition, the parties acknowledge and agree that (a) the Licensed Program and related materials,
know-how and proprietary rights shall be deemed CMC's Confidential Information, and (b) the data contained in each customer Campus, including, but not limited, student records,
financial data, personnel, and other information related to Customers business, shall be deemed Customer's Confidential Information. Each party shall make commercially reasonable efforts to prevent
the theft, disclosure, copying, reproduction, display, distribution and preparation of derivative works of the other party's Confidential Information. Either party may disclose Confidential
Information to its employees, independent contractors and advisors that have a need to know in the course of their assigned duties and responsibilities in connection with this Agreement, provided such
parties are bound by legally binding obligations to protect such Confidential Information in a manner consistent with this Agreement. The parties acknowledge that CMC may be required to use or apply
Customer's Confidential Information as reasonably required in order to perform under this Agreement. 

        5.2    Exceptions.    The obligation to keep information confidential will not extend to:
(a) information that is or becomes a matter of public record through no fault of disclosing party; (b) information that can be shown to have been disclosed to the disclosing party by a
third party without restrictions as to disclosure; and (c) information that was known to the recipient without restriction prior to its disclosure to it by the disclosing party. 

        5.3    Disclosure Required by Law.    If the receiving party is required by a lawful order
from any court of competent jurisdiction to disclose Confidential Information, the receiving party shall promptly notify the disclosing party of any such order, so that the disclosing party may take
reasonable steps to limit further disclosure, including obtaining a protective order or other reasonable assurance that confidential treatment will be accorded the Confidential Information. If, in the
absence of a protective order, the receiving party is compelled as a matter of law to disclose Proprietary Information, the receiving party will use reasonable efforts to disclose only the
Confidential Information that is required by law to be disclosed. 

        5.4    Remedies.    Confidential Information shall remain the sole property of the disclosing
party or its respective licensor. In the event of a breach or threatened breach of this provision, the disclosing party shall be entitled to obtain preliminary injunctive relief, without posting bond,
to prevent the use 

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and
disclosure of such Confidential Information, in addition to all other remedies available at law and in equity. 

6.     TERM AND TERMINATION  

        6.1    Term and Termination.    This Agreement shall continue in force and effect perpetually
unless terminated pursuant to the provisions herein. Either party may terminate this Agreement on thirty (30) calendar days written notice if the other party has breached a material provision
of this Agreement and such breach is not cured within the thirty (30) day period, or a mutually agreed upon extension thereto. Provided, however, CIVIC may terminate this Agreement and any
licenses granted herein upon five (5) calendar days notice if Customer breaches the license provisions set forth in Section 2 above, unless Customer has fully cured such breach within
such five (5) day period. 

        6.2    Effects of Termination.    Upon termination of the Agreement or any license(s) granted
herein arising from the Customer's default, Customer's right to use and possess the Licensed Program and Documentation shall immediately cease. Customer shall promptly return all copies to CIVIC,
except that CMC may otherwise direct Customer to delete all installed copies off of any and all storage media in the control of Customer. Customer shall provide CMC with written certification signed
by an officer of Customer that all copies of the Licensed Programs have been returned or destroyed and that Customer has retained no copies. 

        6.3    Remedies for Customer's Breach.    Termination of this Agreement due to Customer's
default shall not relieve Customer of its obligation to pay CIVIC for all Licensed Programs delivered and for all License Fees due through the date of termination. The parties expressly acknowledge
and agree that License Fees are non-refundable, and CMC shall retain all License Fees as liquidated damages, which amount Customer hereby acknowledges is commercially reasonable and not to
be construed as a penalty. 

        6.4    Remedies for CMC's Breach.    The parties acknowledge and agree that in the event of
termination due to CMC's uncured breach of a material term of this Agreement, CIVIC shall promptly return the License Fees paid to CMC under this Agreement, which shall be Customer's sole and
exclusive remedy. 

7.     WARRANTIES  

        7.1    CMC's Limited Warranties.    CIVIC represents, warrants and covenants that: 

        (a)   so
long as Customer remains a current subscriber to the CampusCare Software Support and Maintenance Agreement, subject to the terms and conditions thereof, the Licensed
Program will perform substantially in conformance with the applicable Documentation. 

        (b)   CMC
has the authority to enter into this Agreement and to grant the rights and licenses set forth herein. 

        (c)   neither
it's entering into nor its performance of this Agreement conflicts with or creates a breach of any of the terms of any contract or obligation to which it is or
becomes subject. 

        7.2    Customer's Limited Warranties.    Customer represents, warrants and covenants that: of
this Agreement. 

        (a)   it
has the authority to enter into and perform in accordance with the provisions 

        (b)   neither
it's entering into nor its performance of this Agreement conflicts with or creates a breach of any of the terms of any contract or obligation to which it is or
becomes subject. 

        (c)   its
business operations are in compliance with all applicable laws, rules and regulations. 

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        7.3    Ancillary Programs Limited Warranty.    In addition to CMC's warranties in
Section 7.1, Customer shall have the benefit of any third party warranties available to end users of the Ancillary Programs; provided however, that Customer's sole remedy for breach of any
third party warranties shall be against the third party licensor providing the Ancillary Program and not against CMC. 

8.     LIMITED WARRANTY REMEDIES; DISCLAIMER OF WARRANTIES  

        8.1    Limited Warranty Remedies.    Customer's exclusive remedy with respect to any breach of
the express warranties set forth in Section 7.1 shall be limited to, at CMC's option, (a) the repair or correction of any defective or nonconforming Licensed Program, or (b) the
replacement of any defective or nonconforming Licensed Program. CMC shall have no obligation to make corrections, repairs or replacements for any material non-conformity or defect which
results, in whole or in part, from (i) any force majeure event (as described below in Section 13.7) related to Customer, (ii) the fault or negligence of Customer, (iii) use
of the Licensed Program in a manner for which it was not designed, including, without limitation, use of the Licensed Program with computer hardware and/ software other than the Supported Systems,
(iv) modifications of the Licensed Program by anyone other than authorized employees or agents of CMC, (v) causes external to the Licensed Program such as, but not limited to, power
failure or electrical power surges, (vi) the interaction of the Licensed Program with software not provided by CMC, or (vii) Customer's failure to install any update provided by CMC
which would have avoided the defect. CMC shall not be obligated to correct, cure, or otherwise remedy any such nonconformity or defect in the Licensed Program if Customer has not reported to CMC the
existence and nature of such nonconformity or defect within thirty (30) days following discovery thereof. Notwithstanding anything to the contrary in this Agreement, CMC reserves the right at
its sole discretion, at any to time, to supersede versions of the Licensed Program with newer versions which may add, modify, or replace specific features or characteristics of earlier versions.
Customer shall agree to accept, install and use such replacements, which versions shall also be deemed warranty replacements for purposes of this Section 8.1- 

        8.2    Disclaimer of Warranties.    THE WARRANTIES PROVIDED IN SECTIONS 7 AND 8 ARE
EXCLUSIVE AND IN LIEU OF ALL OTHER WARRANTIES, WHETHER EXPRESS, IMPLIED OR STATUTORY, INCLUDING, BUT NOT LIMITED TO, ANY IMPLIED WARRANTIES OF MERCHANTABILITY OR FITNESS FOR A PARTICULAR PURPOSE. CMC
DOES NOT
REPRESENT OR WARRANT THAT THE OPERATION OF THE LICENSED PROGRAM WILL BE UNINTERRUPTED OR ERROR FREE. CUSTOMER FURTHER ACKNOWLEDGES THAT THE RELIABILITY, AVAILABILITY AND PERFORMANCE OF INTERNET ACCESS
IS BEYOND CMC'S CONTROL AND IS NOT IN ANY WAY WARRANTED OR SUPPORTED BY CMC UNDER THIS AGREEMENT; CUSTOMER IS SOLELY RESPONSIBLE FOR OBTAINING AND MAINTAINING INTERNET ACCESS AS NECESSARY FOR HOSTING
THE LICENSED PROGRAM AND ASSOCIATED DATA, AND FOR TRANSFERRING OR RECEIVING DATA, AND CUSTOMER BEARS ALL RISK RELATING TO THE TRANSFER AND STORAGE OF SUCH DATA. 

9.     INDEMNIFICATION  

        9.1    CMC Indemnity for Intellectual Property Infringement.    CMC will defend or settle, at
its option and expense, any third party action brought against Customer to the extent that it is based upon a claim that the Licensed Program, as provided by CMC to Customer under this Agreement and
used within the scope of this Agreement, infringes any U.S. patent, copyright, trade secret or other similar intellectual property right of such third party, and CMC will pay all costs, damages and
reasonable 

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attorneys'
fees attributable to such claim that are finally awarded against Customer. CMC's obligations hereunder are subject to the following conditions: 

        (a)   Customer
shall immediately cease using the relevant Licensed Program and notify CMC in writing promptly after Customer becomes aware of a claim or the possibility
thereof; and 

        (b)   Customer
shall grant CMC sole control of the settlement, compromise, negotiation, and defense of any such action; and 

        (c)   Customer
shall cooperate in good faith in the defense of any such action or claim and shall provide CMC with all information related to the action that is reasonably
requested by CMC. 

        9.2    Limitations on Indemnity Obligations.    The foregoing indemnity shall not apply to any
infringement claim that arises from: (i) modification of the Licensed Program by anyone other than CMC; (ii) Customer' s use of the Licensed Program in conjunction with Customer data
where use with such data gave rise to the infringement claim; (iii) Customer's use of the Licensed Program with software or
hardware not provided by CMC, where use with such other software or hardware gave rise to the infringement claim; or (iv) use of other than the most current, unaltered update or upgrade to the
Licensed Program available from CMC, if such claim would have been avoided by Customer's use of such update or upgrade. CMC shall not be liable hereunder for any settlement made by Customer without
CMC's advance written approval, or for any award from any action in which CMC was not granted control of the defense. 

        9.3    Remedies for Infringement.    If use of the Licensed Program is enjoined or if CMC
reasonably believes that use of the Licensed Program may be enjoined, CMC may, at its option, (a) obtain the right for Customer to continue using the Licensed Program; or (b) replace or
modify the Licensed Program so it is no longer infringing, or if CMC determines that neither (a) nor (b) can reasonably be accomplished, (c) terminate the applicable license(s)
and issue a pro rata refund of the License Fees paid for the Licensed Program, which refund amount shall be determined in CMC's reasonable discretion and CMC's payment thereof shall constitute
Customer's sole and exclusive remedy for all claims. 

        9.4    Customer's Indemnity.    Customer shall indemnify and defend CMC against all claims,
liabilities, and costs, including attorneys' fees, incurred in the defense of any claim brought against CMC by third parties based upon Customer's breach or any warranty, representation or obligation
hereunder. If Customer negotiates a settlement with such third parties, then Customer will include CMC as a party generally released from all claims and liabilities by such third party. CMC shall
cooperate as reasonably requested in the defense of such claim and may appear, at its own expense, through counsel reasonably acceptable to Customer. 

        9.5    Entire Liability.    THIS SECTION 9 STATES CUSTOMER'S EXCLUSIVE REMEDY AND CMC'S
ENTIRE LIABILITY FOR CLAIMS AND DAMAGES FOR INFRINGEMENT OF INTELLECTUAL PROPERTY RIGHTS OF ANY KIND. 

10.   LIMITATIONS OF LIABILITY  

        10.1    Limitations of Liability.    IN NO EVENT SHALL EITHER PARTY HERETO BE LIABLE TO THE
OTHER PARTY OR ANY OF ITS AFFILIATES FOR LOST PROFITS, CONSEQUENTIAL, SPECIAL, INCIDENTAL, OR PUNITIVE DAMAGES, HOWSOEVER ARISING OUT OF OR RELATED TO THIS AGREEMENT REGARDLESS OF THE BASIS OF THE
CLAIM. THE PARTIES ACKNOWLEDGE AND AGREE THAT NOTWITHSTANDING THE FORM IN WHICH ANY LEGAL OR EQUITABLE ACTION MAY BE BROUGHT AGAINST CMC, INCLUDING, WITHOUT LIMITATION, IN CONTRACT, BREACH OF
WARRANTY, TORT, NEGLIGENCE, STATUTORY LIABILITY OR OTHERWISE, IN NO EVENT SHALL CMC BE LIABLE FOR ANY LOSS, CLAIM, LIABILITY OR DAMAGE, INCLUDING ATTORNEYS' 

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FEES
AND COSTS, WHICH EXCEED IN THE AGGREGATE THE LICENSE FEES PAID BY CUSTOMER FOR THE SPECIFIC LICENSED PROGRAM WHICH GAVE RISE TO SUCH LIABILITY, IT BEING ACKNOWLEDGED BY CUSTOMER THAT THE PRICING
UNDER THIS AGREEMENT REFLECTS SUCH LIMITATION AND THE ALLOCATION OF ECONOMIC RISK AMONG THE PARTIES. 

        10.2    Exceptions to Limitations.    PROVIDED, HOWEVER, THE LIMITATIONS OF LIABILITY IN THIS
SECTION 10 SHALL NOT APPLY TO BREACH OF CONFIDENTIALITY OR INTELLECTUAL PROPERTY PROVISIONS; WILLFUL MISCONDUCT; OR PAYMENT OF THIRD PARTY CLAIMS IN ACCORDANCE WITH THE INDEMNIFICATION
PROVISIONS OF THIS AGREEMENT. 

11.   AUDIT AND INSPECTION  

        11.1    Remote Access:    Audit. Customer hereby grants a limited license to CMC to remotely
access Customer's Supported System and Licensed Program, as reasonably necessary to assess Customer's compliance with the terms of this Agreement or otherwise to analyze and/or test the Licensed
Program. In addition, CMC shall have the right to enter Customer's premises, as well as to inspect and copy records of Customer, in any and all forms, with respect to the use and operation the
Licensed Program, payment of License Fees, and Customer's maintenance of intellectual property and Confidential Information; provided, however, such audit shall be conducted with reasonable advance
notice, during normal business hours and without unreasonable disruption to Customer's business operations. 

12.   NOTICE  

        12.1    Notice Provisions.    Whenever under the provisions of this Agreement notice is
required to be given, it shall be in writing and shall be deemed given either immediately when hand delivered personally or by courier; upon delivery by a nationally recognized overnight courier
service; or three days after mailing, postage prepaid by certified mail, return receipt requested, addressed to the party below for whom it is intended, with copies provided to the addresses set forth
below, or to such other address as a party shall hereafter designate in writing to another party in accordance with the foregoing procedures. 

					
	Customer:	 	Bridgepoint Education Inc.

350 E. Camelback Rd., # 240B

Phoenix, Arizona 85018	 	 
	
 CMC:	
 	
Campus Management Corp.

777 Yamato Road Suite 400

Boca Raton, Florida 33431	
 	

 

13.   MISCELLANEOUS  

        13.1    Assignment.    Customer may not assign this Agreement in whole or in part, by
operation of law or otherwise, without the prior written consent of CMC, which consent shall not be unreasonably withheld or delayed. 

        (a)   However,
this Agreement may be assigned in its entirety without such consent to the successor in interest to all or substantially all of the assets of Customer or in the
event of a change of control of the beneficial ownership of Customer, provided that: (i) Customer provides written notice to CMC of such proposed assignment at least thirty (30) days
prior to the date of such assignment; (ii) the assignee agrees in writing to be bound by the terms and conditions of this Agreement; (iii) neither Customer nor the assignee is in
material breach of any agreement with CMC; and (iv) the assignee is not a competitor of CMC, in CMC's reasonable discretion. 

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        (b)   Furthermore,
CMC acknowledges that Customer may sell a part of its business constituting one or more Campuses and/or ASRs. In such case CMC shall consent to the transfer
of the Licensed Program with respect to such business division(s), subject to (i) through (iv) of this Section 13.1(a), and further provided that the applicable License Fees for
Customer and purchaser may be increased to the then current rates based on such separate licenses, it being recognized that the number of Campuses and/or ASRs, as applicable, shall not be aggregated
for pricing purposes. 

        (c)   Any
assignment in violation of this Section shall be null and void. This Agreement shall inure to the benefit of and be binding upon each of the party's permitted
successors and assigns. 

        13.2    Governing Laws.    This Agreement will be governed by and construed under the laws of
the State of Florida, without regards to conflicts of law principles. If applicable, the parties expressly opt out of the application to this Agreement of the United Nations Convention on Contracts
for the International Sale of Goods. Each of the parties understands this Agreement and has had adequate opportunity to consult with counsel regarding the provisions of this Agreement. 

        13.3    Export Laws.    Customer shall comply with all current export and import laws and
regulations of the United States and such other governments as are applicable to the Licensed Program. Customer hereby certifies that it will not directly or indirectly, export, re-export,
or transship the Licensed Program or related Documentation, information, or media in violation of United States laws and regulations. 

        13.4    U.S. Government Licensing.    The Licensed Program and any Ancillary Programs provided
herewith are commercial computer software. To the extent applicable, the use, duplication, or disclosure by the Government is subject to restrictions as set forth in this Agreement and are licensed
with "Restricted Rights" as provided for in FAR 52.227-14, FAR 52.227-19(c), DFAR 252.227-7013, and other agency data rights provisions, as applicable. Customer is
responsible for ensuring that copies are marked with a restricted rights notices and legends. CMC reserves all rights not expressly granted to Licensee. 

        13.5    Jurisdiction; Venue; No Jury Trial; Claims Period Limitation.    The parties expressly
waive any right to a jury trial regarding disputes related to this Agreement. The parties irrevocably submit and consent to the exclusive jurisdiction and venue of the Florida state courts in and for
Palm Beach County, Florida, and the Federal Courts in and for the Southern District of Florida. The parties agree not to raise the defense of forum non-conveniens. Unless otherwise
prohibited by applicable law without the possibility of contractual waiver or limitation, and except with respect to infringement of CMC's intellectual property rights, any legal or other action
related to a breach of this Agreement must be commenced no later than two (2) years from the date the claim began to accrue. 

        13.6    Attorneys' Fees.    In the event any action is brought to enforce any provision of
this Agreement or to declare a breach of this Agreement, the prevailing party shall be entitled to recover, in addition to any other amounts awarded, reasonable attorney's fees and other related costs
and expenses actually incurred by reason thereof. 

        13.7    Force Majeure.    Neither party shall be liable for any delay in performing its
obligations under this Agreement, if such delay is caused by circumstances beyond the party's reasonable control, including without limitation, any delay cause by any act or omission of the other
party, acts of God, war, terrorism, floods, windstorm, labor disputes, or delay of essential materials or services. The delayed party shall promptly notify the other party of the reasons for and the
likely duration of the delay, whereupon an extension of time equal to the period of delay shall be granted to the delayed party. 

        13.8    Amendment.    The parties agree that this Agreement cannot be altered, amended or
modified, except by a written Amendment signed by an authorized representative of both parties. In 

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the
event of a conflict between the provisions of this Agreement and any duly executed Sales Order, the terms of such Sales Order shall control. 

        13.9    Survival.    The obligations of the parties under this Agreement, which by their
nature continue beyond the termination or cancellation of this Agreement, shall survive the termination or expiration of this Agreement, including, without limitation, Section 1, 3, 5, and 8
through 13. 

        13.10    Promotional Materials.    CMC may use Customer's name and reference the existence of
this Agreement (without referenced detailed terms and pricing) in promotional and marketing materials, including its Web site. 

        13.11    Waiver; Severability.    Waiver by any party of any breach of any provision of this
Agreement shall not be considered as, nor constitute a continuing waiver, breach or cancellation of, any other breach of any provision of this Agreement. To the extent any court of competent
jurisdiction deems any provision of this Agreement to be unenforceable, such provision shall be reduced or deleted to the minimum extent necessary, but in such manner that the remainder of the
Agreement remains in full force and effect. 

        13.12    Counterparts.    This Agreement may be executed in counterparts, each of which shall
be deemed an original, but which together will constitute one and the same instrument. 

        13.13    Entire Agreement; Effective Upon Acceptance.    This Agreement (including the Order
Form and attachments, if any) constitutes the entire agreement between the parties regarding the subject matter hereof and supersedes and cancels all prior and contemporaneous proposals and
discussions and writings between the parties with respect thereto. This Agreement is valid and binding only upon execution by Customer and the final execution and acceptance by CMC. 

        AGREED AND ACCEPTED by the undersigned duly authorized representative of the parties as of the Effective Date. 

							
	 BRIDGEPOINT EDUCATION, INC.	 	 CAMPUS MANAGEMENT CORP.
	
 	
 	

 	
 	

 	
 	

 
	By:	 	/s/ ANDREW CLARK

 	 	By:	 	/s/ DAVID MEEK

 
	Print:	 	Andrew Clark

 	 	Print:	 	David Meek

 
	Title:	 	Chief Executive Officer

 	 	Title:	 	President

 
	Date:	 	March 2, 2004

 	 	Date:	 	April 6, 2004

 

10

 
 
 

PRICE PROJECT ESTIMATE

								
	Projects

 
	 	Work Hours 	 	Price 	 
	Project Management	 	 	[***]	 	 	[***]	 
	Strategic Vision/Scope	 	 	[***]	 	 	[***]	 
	Infrastructure	 	 	[***]	 	 	[***]	 
	Business Process Analysis	 	 	[***]	 	 	[***]	 
	System Configuration	 	 	[***]	 	 	[***]	 
	Data Conversion	 	 	[***]	 	 	[***]	 
	Campus Training	 	 	[***]	 	 	[***]	 
	Campus Cut-Over	 	 	[***]	 	 	[***]	 
	Campus Transition	 	 	[***]	 	 	[***]	 
	Travel	 	 	 	 	 	 Billed as Incurred	 

        IN WITNESS WHEREOF, for adequate consideration and intending to be legally bound, the parties hereto have caused this Agreement to be
executed by their duly authorized representatives. 

							
	 Bridgepoint Education, Inc.	 	 Campus Management Corp.
	
 	
 	

 	
 	

 	
 	

 
	By:	 	/s/ ANDREW CLARK

 	 	By:	 	/s/ DAVID MEEK

 
	Print:	 	Andrew Clark

 	 	Print:	 	David Meek

 
	Title:	 	Chief Executive Officer

 	 	Title:	 	President

 
	Date:	 	March 2, 2004

 	 	Date:	 	April 6, 2004

 

[***] Confidential
portions of this document have been redacted and filed separately with the Commission. 

11

 

 

 
 

  ADDENDUM TO THE CAMPUSVUE® SOFTWARE LICENSE AGREEMENT BETWEEN
  
    CAMPUS MANAGEMENT CORP.® AND
  
    Bridgepoint Education Inc.
  
    Purpose of Addendum: Increase ASRs    

        This Addendum, effective upon the mutual execution by the parties hereunder, is incorporated into and made a part of the Software
License Agreement (the "License Agreement") between Campus Management Corp. ("CMC") and Bridgepoint
Education, Inc. ("Customer"), dated as of March 2, 2004. All capitalized terms not otherwise defined herein shall have the meaning set forth in the License
Agreement. The following provisions shall be amended, as follows: 

	1.
	Customer
is hereby licensed to use the Licensed Program, including those products set forth in Section 2 below, for an additional
[***] ASRs for a total of up to [***] ASRs, at the following licensed Campuses: 

			
	Institution Name

 
	 	Campus Address 
	 Bridgepoint Education, Inc. 
	 	13500 Evening Creek Drive, Suite 600,

San Diego, CA 92128
	 Ashford University (AU)
	 	13500 Evening Creek Drive, Suite 600,

San Diego, CA 92128
	 Ashford University Online (AUO)
	 	13500 Evening Creek Drive, Suite 600,

San Diego, CA 92128

	2.
	The
incremental License Fees, for the increase in Record Count are as follows: 

				
	License

 
	 	Cost 
	 CampusVue
	 	[***]
	 CampusPortal
	 	[***]
	 CampusLink eLead
	 	[***]
	 CampusLink AppCreator
	 	[***]
	 CampusLink Communicator
	 	[***]
	 	 	 
	 	 TOTAL
	 	 [***]
	 	 	 

	3.
	Customer
agrees to pay the non-refundable fees listed above in three installments. [***] is due and payable with the
executed copy of this Addendum. [***] is due an payable on or before March 8th 2008, and the remaining balance of [***] is
due and payable on or before April 8th, 2008.

	4.
	CMC
agrees to offer the [***] per ASR for up to two additional ASR increases of [***] ASRs each, or for a
total increase of [***] ASRs, for a period of one year from this addendum. 

        Customer
shall promptly pay, indemnify and hold CMC harmless from all sales, use, gross receipts, GST, value-added, personal property or other tax or levy (including interest and
penalties) imposed on the Licensed Program(s) provided above, other than taxes on the net income or profits of CMC. Subject to any applicable laws, the foregoing and Section 3.4 of the License
Agreement shall not apply to the extent Customer is formed as a not for profit organization and promptly provides CMC an applicable tax exempt certificate. All prices quoted are not of taxes. 

[***] Confidential
portions of this document have been redacted and filed separately with the Commission. 

1

 

        This
Addendum is deemed effective upon acceptance at CMC's principal offices. Except as expressly stated herein, all other terms of the License Agreement, as amended, remain unchanged
and in full force and effect. 

							
	 BRIDGEPOINT EDUCATION, INC.	 	 CAMPUS MANAGEMENT CORP.
	
 	
 	

 	
 	

 	
 	

 
	By:	 	  

 	 	By:	 	  

 
	Print:	 	

 	 	Print:	 	

 
	Title:	 	

 	 	Title:	 	

 
	Date:	 	

 	 	Date:	 	

 

2

 

 
 

  ADDENDUM TO THE SOFTWARE LICENSE AGREEMENT BETWEEN
  
    CAMPUS MANAGEMENT CORP.® AND
  
    Bridgepoint Education Inc.
  
    Purpose of Addendum: Increase ASRs    
    

        This Addendum, effective upon the mutual execution by the parties hereunder, is incorporated into and made a part of the Software
License Agreement (the "License Agreement") between Campus Management Corp. ("CMC") and Bridgepoint
Education, Inc. ("Customer"), dated as of March 2, 2004. All capitalized terms not otherwise defined herein shall have the meaning set forth in the License
Agreement. The following provisions shall be amended, as follows: 

	1.
	Customer
is hereby licensed to use the Licensed Program, including those products set forth in Section 2 below, for an additional
[***] ASRs for a total of up to [***] ASRs, at the following licensed Campuses: 

			
	Institution Name

 
	 	Campus Address 
	Bridgepoint Education, Inc. 	 	13500 Evening Creek Drive, Suite 600,

San Diego, CA 92128
	Ashford University (AU-TR)	 	400 North Bluff Road,

Clinton, Iowa 52732
	Ashford University Online (AUO) (AU-AC)	 	400 North Bluff Road,

Clinton, Iowa 52732
	University of the Rockies—Online	 	13500 Evening Creek Drive, Suite 600,

San Diego, CA 92128
	Ashford University-Evening Accelerated (AU-EA)	 	400 North Bluff Road,

Clinton, Iowa 52732
	 	 	 Total Campuses—5

	2.
	The
incremental License Fees, for the increase in Record Count are as follows: 

				
	License

 
	 	Cost 
	 CampusVue
	 	[***]
	 CampusPortal
	 	[***]
	 CampusLink eLead
	 	[***]
	 CampusLink AppCreator
	 	[***]
	 CampusLink Communicator
	 	[***]
	 	 	 
	 	 TOTAL
	 	 [***]
	 	 	 

	3.
	Customer
agrees to pay the non-refundable fees listed above in three installments. [***] is due and payable with the
executed copy of this Addendum. [***] is due an payable on or before September 8th 2008, and the remaining balance of [***]
is due and payable on or before October 8th, 2008.

	4.
	CMC
agrees to offer the [***] per ASR for [***] additional [***] ASR block increase,
through March 8th, 2009. 

        Customer
shall promptly pay, indemnify and hold CMC harmless from all sales, use, gross receipts, GST, value-added, personal property or other tax or levy (including interest and
penalties) imposed on the Licensed Program(s) provided above, other than taxes on the net income or profits of CMC. Subject to any applicable laws, the foregoing and Section 3.4 of the License
Agreement shall not apply to the extent Customer is formed as a not for profit organization and promptly provides CMC an applicable tax exempt certificate. All prices quoted are not of taxes. 

[***] Confidential
portions of this document have been redacted and filed separately with the Commission. 

1

 

        This
Addendum is deemed effective upon acceptance at CMC's principal offices. Except as expressly stated herein, all other terms of the License Agreement, as amended, remain unchanged
and in full force and effect. 

							
	 BRIDGEPOINT EDUCATION, INC.	 	 CAMPUS MANAGEMENT CORP.
	
 	
 	

 	
 	

 	
 	

 
	By:	 	  

 	 	By:	 	  

 
	Print:	 	

 	 	Print:	 	

 
	Title:	 	

 	 	Title:	 	

 
	Date:	 	

 	 	Date:	 	

 

2

 

 
 

  ADDENDUM TO THE SOFTWARE LICENSE AGREEMENT BETWEEN
  
    CAMPUS MANAGEMENT CORP.® AND
  
    Bridgepoint Education Inc.
  
    Purpose of Addendum: Increase ASRs    
    

        This Addendum, effective upon the mutual execution by the parties hereunder, is incorporated into and made a part of the Software
License Agreement (the "License Agreement") between Campus Management Corp. ("CMC") and Bridgepoint
Education, Inc. ("Customer"), dated as of March 2, 2004. All capitalized terms not otherwise defined herein shall have the meaning set forth in the License
Agreement. The following provisions shall be amended, as follows: 

	1.
	Customer
is hereby licensed to use the Licensed Program, including those products set forth in Section 2 below, for an additional
[***] ASRs for a total of up to [***] ASRs, at the following licensed Campuses: 

			
	Institution Name

 
	 	Campus Address 
	Bridgepoint Education, Inc. 	 	13500 Evening Creek Drive, Suite 600,

San Diego, CA 92128
	Ashford University (AU-TR)	 	400 North Bluff Road,

Clinton, Iowa 52732
	Ashford University Online (AUO) (AU-AC)	 	400 North Bluff Road,

Clinton, Iowa 52732
	University of the Rockies—Online	 	13500 Evening Creek Drive, Suite 600,

San Diego, CA 92128
	Ashford University-Evening Accelerated (AU-EA)	 	400 North Bluff Road,

Clinton, Iowa 52732
	Ashford Audit	 	13500 Evening Creek Drive, Suite 600,

San Diego, CA 92128
	Instructor Campus	 	13500 Evening Creek Drive, Suite 600,

San Diego, CA 92128
	 	 	 Total Campuses—7

	2.
	The
incremental License Fees, for the increase in Record Count are as follows: 

				
	License

 
	 	Cost 
	CampusVue	 	[***]
	CampusPortal	 	[***]
	CampusLink eLead	 	[***]
	CampusLink AppCreator	 	[***]
	CampusLink Communicator	 	[***]
	 	 	 
	 	TOTAL	 	 [***]
	 	 	 

	3.
	Customer
agrees to pay the non-refundable fees listed above in three installments. [***] is due and payable with the
executed copy of this Addendum. [***] is due an payable on or before November 8th 2008, and the remaining balance of [***]
is due and payable on or before December 8th, 2008. 

        Customer
shall promptly pay, indemnify and hold CMC harmless from all sales, use, gross receipts, GST, value-added, personal property or other tax or levy (including interest and
penalties) imposed on the Licensed Program(s) provided above, other than taxes on the net income or profits of CMC. Subject to any applicable laws, the foregoing and Section 3.4 of the License
Agreement shall not apply to the extent Customer is formed as a not for profit organization and promptly provides CMC an applicable tax exempt certificate. All prices quoted are not of taxes. 

[***] Confidential
portions of this document have been redacted and filed separately with the Commission. 

1

 

        This
Addendum is deemed effective upon acceptance at CMC's principal offices. Except as expressly stated herein, all other terms of the License Agreement, as amended, remain unchanged
and in full force and effect. 

							
	 BRIDGEPOINT EDUCATION, INC.	 	 CAMPUS MANAGEMENT CORP.
	
 	
 	

 	
 	

 	
 	

 
	By:	 	  

 	 	By:	 	  

 
	Print:	 	

 	 	Print:	 	

 
	Title:	 	

 	 	Title:	 	

 
	Date:	 	

 	 	Date:	 	

 

2

 

 

 
 

  Addendum to the
  CAMPUS2000TM SOFTWARE LICENSE AGREEMENT
  
    1. The License
  1.1 License and Warranty Granted to Buyer    
    

        Campus Management Corp. (Seller or Licensor) hereby grants to: BRIDGEPOINT
EDUCATION, INC. (Buyer or Licensee) the following changes in the Campus2000TM Software License Agreement, dated and subject to the following terms and
conditions: 

	1.
	Buyer
is hereby authorized to use Campus2000 Software for up to [***] Active Student Records and licensed campus locations listed
below. Additional campus locations may be added by notifying Seller in writing as to the name and street address of each such location. The [***] active student records shall
initially be allocated to the campus location(s) of Buyer as follows: 

							
	Institution Name

 
	 	Campus Address 	 	Active Student Records 	 
	Bridgepoint Education, Inc. 	 	13880 Stowe Drive, Suite C

Poway, CA 92064	 	 	 	 
	
Ashford University (AU)	
 	
13880 Stowe Drive, Suite C

Poway, CA 92064	
 	
 	
 	
 
	
Ashford University Online (AUO)	
 	
13880 Stowe Drive, Suite C

Poway, CA 92064	
 	
 	
 	
 
	

 	
 	
 	
 	
 	
TOTAL—[***]

	
 

	2.
	The
incremental license fee for the above Active Student Records is [***]. The incremental license fee for the additional 2 campuses
(addresses of which are to be communicated by customer) is [***]. Additional increases in active student records are to be processed in the manner as described in the original
executed agreement referred to above.

	3.
	Buyer
agrees to pay when due any applicable sales, use, property, excise, VAT, and other similar taxes. 

        IN
WITNESS WHEREOF, the parties hereto have signed this Addendum by their duly authorized representative the date and year indicated below. This agreement is not valid and is not
effective until executed by Seller. 

							
	Buyer:	 	 Bridgepoint Education, Inc.	 	Seller:	 	 Campus Management Corp.
	
 By:	
 	
/s/ RICK GESSNER

 	
 	
By:	
 	

 
	Print:	 	Rick Gessner

 	 	Print:	 	David Meek

 
	Title:	 	Chief Tech Officer

 	 	Title:	 	President

 
	Date:	 	February 16, 2005

 	 	Date:	 	

 

[***] Confidential
portions of this document have been redacted and filed separately with the Commission. 

1

 
 
 

  CAMPUS MANAGEMENT CORP.
  CAMPUSCARESM SUPPORT AGREEMENT    
    

        This CAMPUSCARE SOFTWARE SUPPORT AGREEMENT ("Agreement") made and entered into as of the        day
of                                    , 2004,
(the "Effective Date") is by and
between the provider, CAMPUS MANAGEMENT CORP. ("CMC"), a Florida corporation having its principal office and place of business at 777 Yamato Road, Suite 400, Boca Raton, Florida 33431, and  Bridgepoint
Education, a AZ corporation having its office and place of business at 4350 E. Camelback Road, # 240B, Phoenix, AZ 85018 ("Customer"),
having its principal offices at the address set forth below. 

 
 

  WITNESSETH    
    

        WHEREAS, CMC and Customer have entered into a software license agreement (the "License Agreement") under which Customer obtained a
non-exclusive license to use certain computer programs in object code form and related user documentation (the "Licensed Program") on certain terms and conditions; and 

        WHEREAS,
CMC desires to provide and Customer desires to obtain certain support and maintenance services with respect to the Licensed Program, subject to the terms and conditions set
forth herein. 

        NOW,
THEREFORE, in consideration of the mutual promises and covenants contained herein, the receipt and sufficiency of which is hereby acknowledged, and intending to be legally bound,
the parties agree as follows: 

 
 

  AGREEMENT    
    

1.     DEFINITIONS.  

        For purposes of this Agreement, the following definitions shall apply to the respective capitalized terms. In addition, all capitalized terms used, but not
defined herein, shall have the meaning ascribed in the License Agreement and CMC Professional Services Agreement of event date hereof: 

        1.1    "Computer Infrastructure" means all computers, networks, printers, operating systems, and telecommunications systems used
by Customer in the operation of the Licensed Program. 

        1.2    "Enhancement" means any modification or addition that when made or added to the Licensed Program, changes its utility
efficiency, functional capability, or application. 

        1.3    "Error" means any failure of the Licensed Program to substantially conform in all material respects to the Documentation.
However, any nonconformity resulting from Customer's misuse, improper use, alteration, or damage of the Licensed Program or Customer's combining or merging the Licensed Program with any hardware or
software not supplied or identified as compatible by CMC in writing, shall not be considered an Error. 

        1.4    "Error Correction" means either a modification or an addition that, when made or added to the Licensed Program,
establishes material conformity of the Licensed Program to the functional specifications, or a procedure or routine that, when observed in the regular operation of the Licensed Program, eliminates the
adverse effect on Customer of such nonconformity. 

        1.5    "Licensed Program" means the computer programs described in the License Agreement. 

        1.6    "Normal Working Hours" means the hours between 8 a.m. and 8 p.m. Eastern Standard Time on the days Monday
through Friday, excluding regularly scheduled holidays of CMC. 

2

 

        1.7    "Releases" means new versions of the Licensed Program, which may include Error Corrections and/or Enhancements. 

        1.8    "Support Users" means the specified persons from Customer's corporate staff, helpdesk and/or information technology
personnel, as agreed in writing between CMC and Customer, who may communicate with CMC and utilize the support services described in Section 3 of this Agreement. The list of Support Users may
be amended from time-to-time by the mutual written agreement of the parties. 

        1.9    "Term" means an initial period of one (1) year commencing on the 1st day of January, or any
pro-ration thereof if entered into during the course of a calendar year. Thereafter, on the 1st day of January each year, the Term shall automatically renew for
successive periods of one
(1) year, unless and until terminated pursuant to Section 8 hereof. The Term shall renew at the same service level then in effect at the end of the most recent concluding period. In no
event, however, shall the Term extend beyond the prescribed term of the License Agreement. 

        1.10    "Third Party Products" means products used by Customer in conjunction with the Licensed Program, but not licensed or
provided by CMC as part of the Licensed Program, including, but not limited to, Microsoft Great Plains Accounting, Crystal Reports, Foxfire Report Writer, QuickTouch Point-of Sale,
Scantron, PVI ImageNow, Microsoft SQL Server, Citrix Metaframe, and Microsoft Terminal Server. 

2.    SOFTWARE PRODUCTS COVERED.    CMC will support and maintain the Licensed Program in accordance with the terms and conditions
of this Agreement. From time-to-time, CMC may provide only limited support for Third Party Products with respect to the use of the Licensed Program. Customer is responsible for
obtaining primary support of the Third-Party Products under separate agreement with the providers of such services. 

3.    SCOPE OF SERVICES.    During the Term, CMC shall render the following services ("Standard") during Normal Working Hours in
support of the Licensed Program. Customer may elect to receive Premium annual support for an additional fee. The descriptions of Premium support level and applicable fees are set forth in
Exhibits A and B, respectively. Service levels, terms and conditions are subject to change annually. During the Initial Term, Standard support includes the following services: 

        3.1    CMC shall receive from any of the Support Users (by telephone, e-mail or fax transmission) Customer's reports
of Errors. 

        3.2    CMC shall maintain a toll-free telephone line that allows Customer to seek assistance with use of the
Licensed Program. 

        3.3    CMC shall maintain a trained staff capable of rendering the services set forth in this Agreement. 

        3.4    CMC shall be responsible for using reasonable diligence to correct verifiable and reproducible Errors when reported to
CMC in accordance with CMC's standard reporting procedures. CMC shall, within a reasonable time of verifying that such an Error is present, initiate work in a diligent manner toward development of an
Error Correction. Following completion of the Error Correction, CMC shall provide the Error Correction through a "temporary fix" consisting of sufficient programming and operating instructions to
implement the Error Correction, CMC shall include the Error Correction in all subsequent Releases of the Licensed Program. CMC shall not be responsible for correcting Errors in any version of the
Licensed Program other than the most recent Release of the Licensed Program. However CMC shall continue to support the immediately preceding Release for a reasonable period
sufficient to allow Customer to implement the newest Release, not to exceed 90 days after making the new Release available. 

3

 

        3.5    CMC shall, from time to time, deliver new Releases to its customers generally, containing Error Corrections and
Enhancements. CMC shall provide reasonable assistance to help Customer install and operate each new Release. Customer acknowledges and agrees that this Agreement covers Releases solely to the extent
such products are made generally available to all customers of CMC as part of the same level of maintenance and support services. Any revisions to the Licensed Product constituting new commercially
available products, which may include new major functionality or material changes in technical specifications not made generally available to other customers receiving the same level of support
services, may be purchased under separate mutually agreeable arrangements. 

        3.6    Training is available for an additional fee. Limited training credits are included as part of the service levels in
accordance with the descriptions and rates set forth in Exhibits A and B. 

        3.7    CMC will use reasonable efforts (up to a maximum of thirty (30) minutes) attempting to diagnose and resolve
Licensed Program problems associated with Third Party Products for no additional fee. If at any time CMC reasonably determines the problem is primarily caused by the Third Party Product(s), and not
the Licensed Program, then CMC shall be deemed to have satisfied its obligation to address the problem. Customer acknowledges that CMC may not be able to assist Customer with problems associated with
Third Party Products, and Customer is encouraged to contact vendors of Third Party Products for pertinent support and maintenance services. 

        3.8    Customer may request services not covered in this Agreement, pertaining to the Licensed Program (including, without
limitation, data conversion, report-formatting assistance, diagnosis and repair of infrastructure problems), provided that such assistance, if agreed to be provided, shall be subject to CMC's standard
rates for such services and may require the execution of a separate Professional Services Agreement (the "Additional Services"). 

4.    REMOTE ACCESS.    As a condition of CMC's ability to provide services under this Agreement at all times during the Term,
Customer shall provide a high-speed "at will" internal connection for CMC to remotely provide services hereunder. Failure to do so will impair CMC's ability to resolve Customer's reported
problems in a timely manner and may result in additional charges. 

5.     FEES AND CHARGES  

        5.1    Customer shall pay fees in the amount set forth on Exhibit B attached hereto for the level of service selected by
Customer. If the Term commences after January 1, then Customer shall pay fees and charges on a pro-rated basis for the remainder of the first calendar year. Rates may increase by up
to twelve percent (12) per annum (calculated on an average annual basis over the period of the Term) without additional notice. Notwithstanding the foregoing CMC reserves the right to change
the annual fees and charges upon renewal of this Agreement, provided CMC has given Customer at least thirty (30) days written notice prior to any renewal date. The pricing set forth in this
Agreement is conditioned on the Term of this Agreement renewing continuously on an annual basis without any lapse of service (other than caused by CMC's uncured material breach) or decrease in service
level. In the event of such lapse, Customer shall pay current through the date of recommencing services and thereafter based on CMC's then current standard fees and charges. 

        5.2    Invoices will be sent prior to the end of each calendar year Term, and Customer shall pay in accordance with the payment
schedule identified in Exhibit B with the first payment due to CMC before December 31 in advance of the next one-year Term. Customer shall remain current in all payments as a
condition to CMC continuing to provide services under this Agreement. 

        5.3    For Additional Services, CMC shall invoice all supplemental fees and charges based on the rate schedule set forth in
Exhibit C. Customer shall pay the invoiced amount promptly upon receipt of such invoice, but in no event later than thirty (30) days after the invoice date. 

4

 

        5.4    Any amount invoiced under this Section 5 and not paid in full as required herein shall bear interest at the lesser
of 1.5% per month or the highest rate allowed by applicable law, and shall be subject to reasonable costs and attorney's fees related to collection. A delayed payment constitutes a lapse in service.
CMC reserves the right to suspend any or all services to delinquent accounts until such time as the account is brought current. 

        5.5    Except as otherwise set forth in this Agreement, prices quoted for Services do not include travel and
out-of-pocket expenses. Customer shall reimburse CMC for its reasonable expenses, including, without limitation, costs of travel (air & cab fare, lodging, auto rental or
local
mileage, standard per diem, etc., based on M&I standard US Government per diem rates subject to any other guidelines mutually agreed upon by both parties) and reasonable
out-of-pocket costs for photocopying, overnight courier, long-distance telephone and the like (collectively, "Travel and Expenses"). CMC will maintain records of
Travel and Expenses, and upon Customer's reasonable request CMC will provide copies of records at Customer's expense. 

        5.6    Customer shall be responsible for procuring, installing, and maintaining all equipment, telephone lines, communications
interfaces, and other hardware necessary to operate the Licensed Program. Customer shall be responsible, at its sole cost and expense, for procuring updates to Third Party Products. 

        5.7    If at any time Customer expands its license to increase the Record Count or Campuses in accordance with the terms of the
License Agreement, Customer shall pay the additional proportionate fees under this Agreement, which fees shall commence with the increased License Fee and be prorated for the remainder of the
then-current year of the Term. 

        5.8    Customer acknowledges that CMC allocates its resources to provide services to Customer. In the event Customer cancels any
scheduled services, including, without limitation, Additional Services or training services, with less than thirty (30) days prior written notice to CMC, and CMC cannot after using good faith
efforts reallocate its resources, then Customer shall promptly pay CMC the amount of lost fees (based on the difference between the projected scheduled services for Customer and the fees actually
received) and any out-of-pocket expenses actually incurred by CMC. 

6.     PROPRIETARY RIGHTS  

        6.1    To the extent that CMC may provide Customer with any Error Corrections or Enhancements (collectively, "CMC Programs"),
Customer may install, use and make back-up copies of the CMC Programs strictly in accordance with the License Agreement. All restrictions to the Licensed Program, and all remedies
regarding infringement, apply to the CMC Programs. Any rights not expressly granted herein are reserved to CMC. 

        6.2    The CMC Programs and all components, modifications, derivatives, and compilations thereof, including any and all
intellectual property rights in and to the foregoing, shall remain the exclusive property of CMC, regardless of whether Customer, its employees, or contractors may have contributed to or joined in the
invention or development of such work. Customer shall execute any further
instruments that CMC reasonably requests from time-to-time for purposes of perfecting its ownership rights. 

7.     DISCLAIMER OF WARRANTY AND LIMITATION OF LIABILITY  

        7.1    EXCEPT AS EXPRESSLY SET FORTH HEREIN, EACH PARTY HEREBY DISCLAIMS ALL EXPRESS AND IMPLIED WARRANTIES, INCLUDING, WITHOUT
LIMITATION, ANY IMPLIED WARRANTIES OF MERCHANTABILITY, TITLE, OR FITNESS FOR A PARTICULAR PURPOSE. CMC DOES NOT WARRANT THAT THE SERVICES, LICENSED PROGRAM, 

5

 

ERROR
CORRECTIONS, ENHANCEMENTS AND RELEASES WILL BE ERROR-FREE OR OPERATE WITHOUT INTERRUPTION. 

        7.2    NEITHER PARTY SHALL BE LIABLE TO THE OTHER PARTY FOR DAMAGES IN EXCESS OF THE TOTAL CONTRACT PRICE FOR SERVICES PAID IN
ACCORDANCE WITH SECTION 5.1 ABOVE CALCULATED AS OF THE DATE ANY SUCH CAUSE ACTION AROSE, EXCEPT CUSTOMER SHALL PAY ALL EXPENSES AND FEES FOR SERVICES RENDERED IN ACCORDANCE WITH THIS AGREEMENT.
EXCEPT FOR OBLIGATIONS TO INDEMNIFY AGAINST THIRD PARTY CLAIMS AS SET FORTH HEREUNDER, OR CUSTOMER'S BREACH OF SECTION 8 (PROPRIETARY RIGHTS), IN NO EVENT SHALL EITHER PARTY BE LIABLE, WHETHER
IN CONTRACT, TORT (INCLUDING NEGLIGENCE) OR OTHERWISE, FOR ANY INDIRECT, INCIDENTAL, CONSEQUENTIAL OR PUNITIVE DAMAGES (INCLUDING LOST SAVINGS, PROFIT OR BUSINESS INTERRUPTION EVEN IF NOTIFIED IN
ADVANCE OF SUCH POSSIBILITY) ARISING OUT OF OR PERTAINING TO THE SUBJECT MATTER OF THIS AGREEMENT. 

        7.3    No action, whether based in contract, strict liability, or tort, including any action based on negligence, arising out of
the performance of services under this Agreement, may be brought by either party more than two (2) years after such cause of action accrued. 

8.     TERMINATION  

        8.1    This Agreement may be terminated as follows: 

        8.2    This Agreement shall immediately terminate upon the termination of the CMC Software License Agreement; 

        8.3    This Agreement may be terminated by either party upon the expiration of the then current term of this Agreement, provided
at least thirty (30) days' prior written notice is given to the other party; or 

        8.4    This Agreement may be terminated if the other party has breached any material provision of this Agreement and has not
cured the breach within thirty (30) days after delivery of written notice thereof. 

        8.5    Following termination of this Agreement, CMC shall Immediately Invoice Customer for all accrued fees and charges and all
reimbursable expenses, and Customer shall pay the invoiced amount immediately upon receipt of such invoice. Except if this Agreement terminates as a result of Customer's uncured material breach,
Customer may continue to use any work supplied to Customer by CMC for the remaining term of the CMC Software License Agreement. 

9.     CONFIDENTIALITY  

        9.1    Each party hereby acknowledges that it may be exposed to confidential and proprietary information belonging to the other
party or relating to its affairs, including, without limitation, source code and design materials for the Licensed Program, business plans, databases, student names and prospective student names,
students' personal information, strategies, techniques, and other materials expressly designated or marked as confidential (collectively the "Confidential Information"). CMC's Confidential Information
shall include, without limitation, the Licensed Program, Enhancements, Error Corrections, Releases, and information provided in the course of performing support services. Customer's databases of
student records and data shall be deemed Customer's Confidential Information. The terms and pricing in this Agreement shall be deemed Confidential Information. Confidential Information does not
include (i) information already known or independently developed 

6

 

by
the recipient; (ii) information in the public domain through no wrongful act of the party, or (iii) information received by a party from a third party who was free to disclose it. 

        9.2    Each party hereby agrees that during the Term and at all times thereafter it shall not use, commercialize or disclose the
other party's Confidential Information to any person or entity, except to its own employees having a "need to know," and to such other recipients as the other party may approve in a signed writing.
Each party shall use at least the same degree of care in safeguarding the other party's Confidential Information as it uses in safeguarding its own Confidential Information, but in no event shall a
party use less than due diligence and care. Nothing herein shall prohibit CMC from disclosing Customer's Confidential Information if as a matter of law or a valid court order it is required to do so,
provided CMC shall first use reasonable efforts to notify Customer so that it may attempt to obtain a protective order limiting disclosure. Neither party shall alter or remove from any software,
documentation or other Confidential Information of the other party (or any third party) any proprietary, copyright, trademark or trade secret legend. 

        9.3    Recognizing that a breach of this Section 9 could result in irreparable harm, for which money damages along would
be inadequate, the disclosing party shall be entitled to equitable remedies, including injunctive relief, in addition to damages available at law. 

10.    NON-SOLICITATION.    During the Term and for a period of one (1) year thereafter, Customer agrees not to
target for hire, solicit, nor attempt to solicit the services of any employee or subcontractor of CMC without the prior written consent of CMC. Violation of this provision shall, in addition to other
relief, entitle CMC to assert liquidated damages against Customer equal to one hundred fifty percent (150%) of the solicited person's annual compensation. 

11.    NOTICES.    Notices sent to either party shall be effective when delivered in person or transmitted by fax machine with
printed confirmation page (if delivered after 5:00 recipient's local time, then effective the next business day), one (1) day after being sent by overnight courier, or two (2) days after
being sent by first class mail postage prepaid to the address on the first page hereof or such other address as a party may give notice in the same manner set forth in this Section 11. 

12.   MISCELLANEOUS.  

        12.1    Disputes; Choice of
Law.    

	(a)
	The
parties agree that all disputes between them shall be submitted for informal resolution to their respect chief operating officers or his/her authorized
designee with power to bind his/her respective company. The representatives shall meet within ten (10) days of a mutually agreeable location, but shall not be required to meet for more than two
(2) business days; the timeline for performance of each parties' obligations hereunder shall be tolled proportionately until, in accordance with the foregoing, the dispute is resolved or the
parties stop meeting without having resolved such dispute. Provided, the foregoing process shall not require a party to delay obtaining any injunctive relief or equitable remedies based on a claim
arising from the other party's breach of intellectual property, confidentiality or non-solicitation obligations hereunder.

	(b)
	The
parties agree that no oral or written representation made during the course of any settlement discussions shall constitute a party admission. If the
parties are still unable to reconcile their differences in accordance with the foregoing procedures, each party hereby agrees that any controversy or claim, whether based on contract, tort or other
legal theory, arising out or relating to this Agreement, shall be maintained exclusively in the jurisdiction and venue of the courts sitting in and for Palm Beach County and the Southern District of
Florida. The prevailing party shall be entitled to reimbursement of 

7

 

reasonable
attorneys' fees and costs. The parties expressly waive right to trial by jury. The Customer expressly waives rights to participate in any class action lawsuit against CMC. 

	(c)
	This
Agreement shall be governed by and construed in accordance with the substantive laws of Florida, without regards to conflict of laws principles. The
parties expressly opt out of the application of the UN Convention on the International Sale of Goods. 

        12.2    Independent Contractor Status.    Each
party and its personnel are independent contractors in relation to the other party with respect to all matters arising under this Agreement. Nothing herein shall be deemed to establish a partnership,
joint venture, association or employment relationship between the parties. Each party shall remain responsible, and shall indemnify and hold harmless the other party, for the withholding and payment
of all Federal, state and local personal income, wage, earnings, occupation, social security, worker's compensation, unemployment, sickness and disability insurance taxes, payroll levies or employee
benefit requirements (under ERISA, state law or otherwise) now existing or hereafter enacted and attributable to themselves and their respective people. 

        12.3    Security; No Conflicts.    Each party
agrees to inform the other of any information made available to the other party that is classified or restricted data, agrees to comply with the security requirements imposed by any state or local
government, or by the United States Government, or by applicable law, and shall return all such material upon request. Each party warrants that its participation in this Agreement does not conflict
with any contractual or other obligation of the party or create any conflict of interest prohibited by the U.S. Government or any other government and shall promptly notify the other party if any such
conflict arises during the Term. 

        12.4    Insurance; Indemnify.    Each party
shall maintain adequate insurance protection covering its respective activities hereunder, including coverage for statutory worker's compensation, comprehensive general liability for bodily injury and
tangible property damage, as well as adequate coverage for vehicles. Each party (the "Indemnifying Party") shall indemnify, defend and hold harmless the other and its affiliates, and each of its
respective officers, directors, employees, agents, independent contractors, successors and assigns (collectively the "Indemnified Party") from and against third party claims based on bodily injury,
death and tangible property damage resulting from the grossly negligent or willful acts or omissions of its officers, agents, employees or representatives acting within the scope of their work. The
Indemnifying Party will defend, indemnify and hold harmless the Indemnified Party against the claim at the Indemnifying Party's expense and pay all costs, damages, and attorney's fees that a court
awards provided that the Indemnified Party: (a) promptly notifies the Indemnifying Party in writing of the claim; and (b) allows the Indemnifying Party to control, and cooperates with
the Indemnifying Party in the defense and any related settlement negotiations (provided the Indemnifying Party does not settle the dispute without the Indemnified Party's written consent, unless the
Indemnifying Party obtains a general release in favor of the Indemnified Party). Nothing herein shall restrict the Indemnified Party from participating in the defense of its own cost and expense. 

        12.5    Force Majeure.    Neither party shall
be liable for any delay in performing its obligations under this Agreement, if such delay is caused by circumstances beyond the party's reasonable control, including without limitation, any acts of
God, war, terrorism, floods, windstorm, labor disputes, changes in laws or regulations, or delay of essential materials or services. In the event of non-performance or a delay in
performance of obligations under this Agreement is due to a force majeure, the period of performance shall be extended by the delay due to such events of force majeure and any additional time that the
parties may mutually agree is necessary for the remobilization of people and equipment. However, the party not affected by the force majeure shall have the right to terminate this Agreement without
penalty if the party affected by the force majeure event is unable to resume full performance within sixty (60) days of occurrence of the event. 

        12.6    Assignment.    This Agreement may not
be assigned by Customer, in whole or in part, except it may be assigned its entirety solely in connection with a permitted assignment of the entire License 

8

 

Agreement
in accordance with the express terms and conditions of the assignment provision in the License Agreement. 

        12.7    Miscellaneous.    This document and
the exhibits attached hereto constitute the entire and exclusive agreement between the parties with respect to the subject matter hereof and supersede all prior and contemporaneous communications,
whether written or oral. This Agreement may be modified or amended only by a writing signed by the party against whom enforcement is sought. Any provision hereof found by a tribunal of competent
jurisdiction to be illegal or unenforceable shall be automatically conformed to the minimum requirements of law and all other provisions shall remain in full force and effect. Waiver of any provision
hereof in one instance shall not preclude enforcement thereof on future occasions. Headings are for reference purposes only and have no substantive effect. The provisions of Sections 1, 5, 6,
7, 8.5, and 9 through 12 shall survive termination of this Agreement. Copies of this Agreement and notices generated in accordance herewith shall be treated as original documents admissible into
evidence, unless a document's authenticity is genuinely placed in question. This Agreement may be executed in counterparts, each of which shall be deemed an original and together shall be deemed the
entire Agreement. 

        AGREED
AND ACCEPTED by the undersigned duly authorized representatives of the parties as of the date first set forth above. 

					
	 
	 	 Bridgepoint Education
	 
	 	 	 	 
	 
	 	By:	 	/s/ RICK GESSNER

 
	 
	 	Name:	 	Rick Gessner

 
	 
	 	Title:	 	Chief Tech Officer

 
	 
	 	Date:	 	2-15-05

 
	 
	 	 	 	 
	 
	 	 Campus Management Corp.
	 
	 	 	 	 
	 
	 	By:	 	

 
	 
	 	Name:	 	David Meek

 
	 
	 	Title:	 	President

 
	 
	 	Date:	 	

 

9

 
 
 

  EXHIBIT A
  
    DESCRIPTION OF SUPPORT LEVELS    
    

        Premium support services are cumulative and in addition to Standard support services. 

					
	 
	 	STANDARD 	 	PREMIUM 
	• Support Center 8 a.m.-8 p.m. ET—Mon.—Fri. 	 	X	 	X
	• Unlimited Access to the CMC Web Information	 	X	 	X
	• Software Upgrades (feature releases)	 	X	 	X
	• Patches	 	X	 	X
	• Two admission passes to the CMC User Conference	 	X	 	X
	• Training Credits	 	X	 	X
	• Immediate Analyst Contact with Phone Calls	 	 	 	X
	• 4-Hour Response Time to Phone Calls / Emails	 	X	 	 
	• Knowledge Base Access	 	X	 	X
	• Two additional passes to CMC Users' Conference	 	 	 	X
	• Case Review Call with Support Manager	 	 	 	X
	• Custom Case Report	 	 	 	X
	• Emergency Call Availability (24x365)	 	 	 	X
	• Off-Hours System Upgrades	 	 	 	X

10

 
 
 

  EXHIBIT B
  
    RATE SCHEDULE AND TRAINING CREDITS FOR STANDARD AND PREMIUM SERVICES    
    

        Customer, Bradford Capital Partners (Median), must choose a support plan by checking the appropriate box below. Rates are calculated
based on the applicable Record Count. The number of training credits issued and pricing discount provided, if any, is indicated for each plan. 

        #
ASR/FTE: [***]                        # of Campuses: 3

											
	 
	 	STANDARD

 
	 	 
	 	 
	 
	 
	 	CampusCare

Payment Plans
	 	Additional Services 	 	Allocation 	 
	o 1.	 	One Payment of [***]	 	[***]	 	User Conference Passes	 	 	[***]	 
	
o 2.	
 	
One Credit Card Payment of [***]	
 	
[***]	
 	
Training Credits	
 	
 	
[***]	
 
	
o 3.	
 	
Quarterly Payments of [***]	
 	

 	
 	

 	
 	
 	

 	
 
	
o 4.	
 	
Monthly Payments of [***]	
 	

 	
 	

 	
 	
 	

 	
 

 

											
	 
	 	PREMIUM

 
	 	 
	 	 
	 
	 
	 	CampusCare

Payment Plans
	 	Additional Services 	 	Allocation 	 
	o 1.	 	One Payment of [***]	 	[***]	 	User Conference Passes	 	 	[***]	 
	
o 2.	
 	
One Credit Card Payment of [***]	
 	
[***]	
 	
Training Credits	
 	
 	
[***]	
 
	
o 3.	
 	
Quarterly Payments of [***]	
 	

 	
 	

 	
 	
 	

 	
 
	
o 4.	
 	
Monthly Payments of [***]	
 	

 	
 	

 	
 	
 	

 	
 

[***] Confidential
portions of this document have been redacted and filed separately with the Commission. 

11

 
 
 

  EXHIBIT C
  
    SCHEDULE OF STANDARD RATES    
    

							
	LABOR CATEGORIES

 
	 	DESCRIPTION 	 	RATES PER HOUR 	 
	CMC Management	 	Executive management team that manages CMC resources and ensures contractual obligations are met.	 	$	[***]	 
	
CMC Product Specialist	
 	
Product expert that advises the client in the configuration of the Campus2000 product to help ensure business objectives are met. Acts as liaison between client management and CMC.	
 	
$	

[***]	
 
	
CMC Development	
 	
Programmers that analyze and create new functionality and/or reports based on business requirements.	
 	
$	

[***]	
 
	
CMC Date Conversion	
 	
Programmers that analyze and transform data from legacy systems.	
 	
$	

[***]	
 
	
CMC Project Manager	
 	
Project Manager that assigns resources, measures progress and ensures client satisfaction by managing the activities of the project on a daily basis.	
 	
$	

[***]	
 
	
CMC Trainer	
 	
Train end users and management and assist the Project Manager.	
 	
$	

[***]	
 
	
CMC Infrastructure	
 	
A telecommunication, network, local area network, wide are network, systems administration, hardware, server, and client maintenance administrator.	
 	
$	

[***]	
 

[***] Confidential
portions of this document have been redacted and filed separately with the Commission. 

12

 

 

 
 

  ADDENDUM TO THE CAMPUSCARE® SUPPORT AGREEMENT BETWEEN
  
    CAMPUS MANAGEMENT CORP.® AND
  
    BRIDGEPOINT EDUCATION, INC.
  
    Purpose of Addendum: Increase ASRs    

        This Addendum, effective upon the mutual execution by the parties hereunder, is incorporated into and made a part of the CampusCare
Support Agreement (the "CampusCare Agreement") between Campus Management Corp. ("CMC") and Bridgepoint
Education, Inc. ("Customer"), dated as of February 15, 2005. All capitalized terms not otherwise defined herein shall have the meaning set forth in the CampusCare
Agreement. The CampusCare Agreement shall be amended, as follows: 

	1.
	Contemporaneously
with this Addendum, Customer is executing the Addendum to the Software License Agreement in order add an additional
[***] ASRs, for a total Record Count of up to [***] ASRs. Accordingly, the incremental Premium CampusCare fees for the Licensed Programs, based on the
addition of [***] ASRs, for the period August 1, 2008, through December 31, 2008, are as follows. 

				
	License

 
	 	Cost 
	CampusVue	 	[***]
	CampusPortal	 	[***]
	CampusLink eLead	 	[***]
	CampusLink AppCreator	 	[***]
	CampusLink Communicator	 	[***]
	 	 	 
	 	TOTAL	 	 [***]
	 	 	 

	2.
	Customer
shall pay the non-refundable fees listed above as follows: 

[***]

        Customer
shall promptly pay, indemnify and hold CMC harmless from all sales, use, gross receipts, GST, value-added, personal property or other tax or levy (including interest and
penalties) imposed on the services and deliverables provided, other than taxes on the net income or profits of CMC. Subject to any applicable laws, the foregoing shall not apply to the extent Customer
is formed as a not for profit organization and promptly provides CMC an applicable tax exempt certificate. All prices quoted are net of taxes. 

        This
Addendum is deemed effective upon acceptance at CMC's principal offices. Except as expressly stated herein, all other terms of the CampusCare Agreement, as amended, remain unchanged
and in full force and effect. 

							
	 BRIDGEPOINT EDUCATION, INC.	 	 CAMPUS MANAGEMENT CORP.
	
 	
 	

 	
 	

 	
 	

 
	By:	 	  

 	 	By:	 	  

 
	Print:	 	

 	 	Print:	 	

 
	Title:	 	

 	 	Title:	 	

 
	Date:	 	

 	 	Date:	 	

 

[***]
Confidential portions of this document have been redacted and filed separately with the Commission. 

1

 

 

 
 

  ADDENDUM TO THE CAMPUSCARE® SUPPORT AGREEMENT BETWEEN
  
    CAMPUS MANAGEMENT CORP.® AND
  
    BRIDGEPOINT EDUCATION, INC.
  
    Purpose of Addendum: Increase ASRs    

        This Addendum, effective upon the mutual execution by the parties hereunder, is incorporated into and made a part of the CampusCare
Support Agreement (the "CampusCare Agreement") between Campus Management Corp. ("CMC") and Bridgepoint
Education, Inc. ("Customer"), dated as of February 15, 2005. All capitalized terms not otherwise defined herein shall have the meaning set forth in the CampusCare
Agreement. The CampusCare Agreement shall be amended, as follows: 

	1.
	Contemporaneously
with this Addendum, Customer is executing the Addendum to the Software License Agreement in order add an additional
[***] ASRs, for a total Record Count of up to [***] ASRs. Accordingly, the incremental Premium CampusCare fees for the Licensed Programs, based on the
addition of [***] ASRs, for the period October 1, 2008, through December 31, 2008, are as follows. 

				
	License

 
	 	Cost 
	 CampusVue
	 	[***]
	 CampusPortal
	 	[***]
	 CampusLink eLead
	 	[***]
	 CampusLink AppCreator
	 	[***]
	 CampusLink Communicator
	 	[***]
	 	 	 
	 	 TOTAL
	 	 [***]
	 	 	 

	2.
	Customer
shall pay the non-refundable fees listed above [***] 

        Customer
shall promptly pay, indemnify and hold CMC harmless from all sales, use, gross receipts, GST, value-added, personal property or other tax or levy (including interest and
penalties) imposed on the services and deliverables provided, other than taxes on the net income or profits of CMC. Subject to any applicable laws, the foregoing shall not apply to the extent Customer
is formed as a not for profit organization and promptly provides CMC an applicable tax exempt certificate. All prices quoted are net of taxes. 

        This
Addendum is deemed effective upon acceptance at CMC's principal offices. Except as expressly stated herein, all other terms of the CampusCare Agreement, as amended, remain unchanged
and in full force and effect. 

							
	 BRIDGEPOINT EDUCATION, INC.	 	 CAMPUS MANAGEMENT CORP.
	
 	
 	

 	
 	

 	
 	

 
	By:	 	  

 	 	By:	 	  

 
	Print:	 	

 	 	Print:	 	

 
	Title:	 	

 	 	Title:	 	

 
	Date:	 	

 	 	Date:	 	

 

[***]
Confidential portions of this document have been redacted and filed separately with the Commission. 

1

 

[CAMPUS MANAGEMENT LETTERHEAD] 

 
    STATEMENT OF WORK    
    

					
	Bridgepoint Education	 	 Customer Contact:	 	 Andrew Clark
	13500 Evening Creek Drive, Ste. 600

San Diego, CA 92128	 	Contact Phone/Email	 	(858)-513-9240 /

aclark@bridgepointeducation.com

        This
STATEMENT OF WORK ("SOW") identifies the scope of services, quotation and payment arrangements to be provided by Campus Management Corp., with corporate offices located at 777
Yamato Road Suite 400, Boca Raton, Florida 33431 (hereinafter "CMC") to Bridgepoint Education (hereinafter "Customer") as referred to above.
Terms of this SOW are set forth in the Customer CampusCare Support Agreement. Services will be more specifically described in section I (the "Engagement Scope") of this SOW. Acceptance of this
SOW is defined by Customer's signature on this document and CMC's acceptance hereof. 

        CMC
and Customer shall date and execute this SOW prior to services being performed. This SOW will be billed on a Time and Materials basis ("T&M"). Section III ("Services
Estimate") below is an estimate only and the actual cost to Customer will be billed based on the service performed as outlined in the Engagement Scope and calculated based on the per hour cost
outlined in Section III (the "T&M Cost per Hour"). 

        This
SOW expires after thirty (30) days from the date referred to above, unless signed and returned by the Customer. 

I.     Encasement Scope:  

        Customer wishes to contract with CMC to provide implementation services for a Business Process Re-engineering/CampusVue Re-configuration
engagement. The engagement is designed to complete a Re-engineering analysis of Financial Aid, Student Accounts, and Academics resulting in new processes, documentation and/or
configuration. These changes will be implemented at Ashford University Online, but is designed to be rolled out to other campuses. 

        The
process will be to have CMC Industry Consultants work with a CMC Implementation Consultant (IC) in collaboration with a Project Lead from Bridgepoint Education to methodically review
the functional areas by applying best practices and ensure configuration and processes are maximized and in compliance. The team will also have facilitated meetings with appropriate staff to review
working procedures and documentation including training materials. At the conclusion of each phase of analysis, recommended configurations will be documented and implemented by the IC and Project
Lead. 

        This
SOW provides five weeks over a six month period by CMC Industry Consultants with specific subject matter expertise to make the recommended changes per functional area. An IC will be
engaged for the entire six month assignment to perform the actual documentation and necessary Re-configuration pending client's acceptance of the recommendations. However, the actual work
required after the Re-engineering may be less or greater than the proposed six months. CMC will provide Bridgepoint estimates for any of the recommended changes that cannot be completed
within the six month period. These can be completed by CMC and/or Bridgepoint Education's staff. 

        The
CMC Project Manager will be engaged onsite for the initial project kick off and will provide support, status reports and periodic updates during the engagement period to ensure
customer satisfaction. 

1

 

II.    Project Deliverables:  

	1.
	Complete
review of system settings

	2.
	Complete
review of processes for area identified

	3.
	Comprehensive
report on recommended system configuration changes

	4.
	Guidance
to incorporate revised processes into training manual regarding proper use of system

	5.
	Actual
configuration in Test system and assistance in testing

	6.
	Configuration
in Live production environment with participation from BPE/Ashford employees

	7.
	Guidance
on best methodology and timeline for migration to new configuration 

        Specific topics to be covered include :    Term Configuration, Program Configuration, and all topics indicated on the functional lists
which follow
Student Lifecycle, Curriculum, Scheduling and Registration, Academic Operations, Student Services Operations, Student Finance Operations, Student Accounts Operations, and Finance. Prospect Management
for the lifecycle, Admissions, Housing and Alumni have been intentionally omitted from the CMC business process lists. 

III.  Period of Performance:  

        The period of performance for this engagement commences with the confirmed returned signed Statement of Work and when a 20% deposit has been received by Campus
Management Corporation. This project is estimated to begin April 15th, 2008 and span a 4-6 month time frame. 

IV.    Service Estimate:  

        The estimated cost to complete the tasks outlined in this SOW is [***] and will be billed at a rate (the "T&M Cost per Hour") of
[***] for CMC Industry Consultants, [***] for CMC Implementation Consultants , and [***] for Project Management. 

									
	Estimated Services

 
	 	Tentative

Start Date 	 	Hrs 	 	Amount 
	CMC Industry Consultants:	 	 	 	 	 	 	 	 
	
1. Cross Functional Review	
 	
 	
6/2/08

&

6/16/08	
 	
 	
[***]	
 	
[***]
	
2. Academic and Student Services Review	
 	
 	
July 2008	
 	
 	
[***]	
 	
[***]
	
3. Student Finance (FA/SA) Review	
 	
 	
July/August 2008	
 	
 	
[***]	
 	
[***]
	
CMC Solutions Architect & Implementation Consultant	
 	
 	
4/14/08	
 	
 	
[***]	
 	
[***]
	
CMC Project Management	
 	
 	
4/14/08	
 	
 	
[***]	
 	
[***]
	
Total Estimated Services	
 	
 	
 	
 	
 	
 	
 	
 [***]
	
Estimated Travel Costs (Hotel, Per Diem, Airfare)	
 	
 	
 	
 	
 	
 	
 	
 Billed As Incurred

        IN WITNESS WHEREOF, the Parties hereto have caused this SOW to be executed by their duly authorized representatives. 

							
	 CUSTOMER	 	 CAMPUS MANAGEMENT CORP.
	
 	
 	

 	
 	

 	
 	

 
	BY:	 	

 	 	BY:	 	

 
	NAME:	 	

 	 	NAME:	 	

 
	TITLE:	 	

 	 	TITLE:	 	

 
	DATE:	 	

 	 	DATE:	 	

 

[***]
Confidential portions of this document have been redacted and filed separately with the Commission. 

2

QuickLinks

Exhibit 10.21

CAMPUS MANAGEMENT CORP. SOFTWARE LICENSE AGREEMENT

RECITALS

AGREEMENT

PRICE PROJECT ESTIMATE

ADDENDUM TO THE CAMPUSVUE® SOFTWARE LICENSE AGREEMENT BETWEEN CAMPUS MANAGEMENT CORP.® AND Bridgepoint Education Inc. Purpose of Addendum: Increase ASRs

ADDENDUM TO THE SOFTWARE LICENSE AGREEMENT BETWEEN CAMPUS MANAGEMENT CORP.® AND Bridgepoint Education Inc. Purpose of Addendum: Increase ASRs

ADDENDUM TO THE SOFTWARE LICENSE AGREEMENT BETWEEN CAMPUS MANAGEMENT CORP.® AND Bridgepoint Education Inc. Purpose of Addendum: Increase ASRs

Addendum to the CAMPUS2000TM SOFTWARE LICENSE AGREEMENT 1. The License 1.1 License and Warranty Granted to Buyer

CAMPUS MANAGEMENT CORP. CAMPUSCARESM SUPPORT AGREEMENT

WITNESSETH

AGREEMENT

EXHIBIT A DESCRIPTION OF SUPPORT LEVELS

EXHIBIT B RATE SCHEDULE AND TRAINING CREDITS FOR STANDARD AND PREMIUM SERVICES

EXHIBIT C SCHEDULE OF STANDARD RATES

ADDENDUM TO THE CAMPUSCARE® SUPPORT AGREEMENT BETWEEN CAMPUS MANAGEMENT CORP.® AND BRIDGEPOINT EDUCATION, INC. Purpose of Addendum: Increase ASRs

ADDENDUM TO THE CAMPUSCARE® SUPPORT AGREEMENT BETWEEN CAMPUS MANAGEMENT CORP.® AND BRIDGEPOINT EDUCATION, INC. Purpose of Addendum: Increase ASRs

STATEMENT OF WORKQuickLinks
 -- Click here to rapidly navigate through this document

 

 
 

  Exhibit 10.22    
    

 
 

  GENERAL SERVICES AGREEMENT    
    
    BETWEEN    
    
    AFFILIATED COMPUTER SERVICES, INC.    
    
    AND    
    
    ASHFORD UNIVERSITY, LLC    
    
    JANUARY 1, 2009

    

 
 

  GENERAL SERVICES AGREEMENT    
    

        THIS GENERAL SERVICES AGREEMENT (this "Agreement") is made and entered into effective
as of January 1, 2009 (the "Effective Date"), between Affiliated Computer Services, Inc., a Delaware corporation
("ACS"), with an address for the purposes of this Agreement at 2828 North Haskell, Dallas, TX 75204 and Ashford University, LLC, an Iowa Limited
Liability Company ("Customer"), with an address for the purposes of this Agreement at 13500 Evening Creek Drive North, Suite 600, San Diego, CA
92128. ACS and Customer are collectively referred to as "Parties" and individually as a "Party". 

        This
Agreement is entered into with reference to the following facts: 

	A.
	ACS
is in the business of providing certain data processing and related services; and,

	B.
	Customer
desires to engage ACS from time to time pursuant to one or more Task Orders to provide services subject to the Parties' further agreement on the
scope and terms of each such Task Order; and,

	C.
	ACS
and Customer desire to set forth in this Agreement certain terms applicable to all such engagements as described in the Task Orders, as they are entered
into and executed by both Parties from time to time.

	D.
	The
purpose of this Agreement is for ACS to provide call center and transactional processing services relating to the functions of ISIR document
collection/review, Verification/C-code, Conflicting information resolution, packaging/Certification, Disbursement Eligibility Review and Title IV Refund Processing for Customer's financial
aid student populations and as further defined in the Task Orders. 

        Accordingly,
Customer and ACS agree as follows: 

1.     Task Orders  

        1.1    Task Order Information.    All services performed under this Agreement will be performed under individual Task
Orders. Each Task Order will contain, at a minimum, (i) a description of the services to be performed by ACS (the "Services") (ii) the
time schedule for performance and for delivery of such Services, and (iii) the amount and method of payment for such Services. 

        1.2    Other Information.    In addition, when applicable, a Task
Order may include (i) provisions for written and/or oral progress reports by ACS, (ii) detailed functional and technical specifications and standards for all Services, including quality
standards, (iii) a list of any special equipment to be procured by ACS or provided by Customer for use in performance of the Services or (iv) such other terms and conditions as may be
mutually agreed between the parties. In the event of a conflict between the terms of this Agreement and the terms of any particular Task Order, the terms of the Task Order will govern. 

        1.3    Issuance of Task Orders.    The initial Task Order(s) agreed to
by the Parties are set forth as attachments to this Agreement. Additional Task Orders, regardless of whether they relate to the same subject matter as the initial Task Order(s), will become effective
upon execution by authorized representatives of both Parties. 

2.     Contract Administration  

        2.1    Contract Coordinators.    Upon execution of this Agreement,
each Party will notify the other Party, in writing, of the name, business address, and telephone number of the person who will have primary
responsibility for interfacing on its behalf with the other Party (the "Contract Coordinator"). The Contract Coordinators will be responsible for
arranging all meetings, visits, and consultations between the Parties that are of a nontechnical nature and for monitoring all administrative matters arising under this Agreement. 

 

        2.2    Changes in Coordinators.    Either Party may replace its
Contract Coordinator by delivery of written notice of such change, signed by the Contract Coordinator of such Party. The notice will set forth the name, business address, email address and telephone
number of such replacement. 

3.     Changes to the Agreement or Task Orders  

        3.1    Change Requests.    All change requests made in writing with
respect to this Agreement, any Task Order, or any specification relating to the Services must be requested and/or accepted by both Parties' Contract Coordinators, and will only be effective when
changed by a written amendment, signed by an authorized representative of each Party, which specifically refers to the provisions of the Agreement or the Task Order(s) to be modified. Unless otherwise
specified in writing, amendments implemented to any Task Order will only apply to that Task Order. 

4.     ACS Responsibilities and Customer Responsibilities  

        4.1    The Services.    ACS' employees and agents shall provide
various services to Customer as described in greater detail in the Task Orders. ACS agrees to use its best efforts to perform the Services at a high level based on the standards prevailing among those
top-tier service vendors offering services similar to the Services. In the performance of the Services required under this Agreement,
ACS shall at all times act in the nature of a fiduciary in the administration of any Title IV, HEA program ("Title IV, HEA program") and meet the
standard of conduct set forth in 34 C.F.R. Section 668.82(b)(2). 

        4.2    Compliance with Law.    In performing the Services, ACS shall
comply with all applicable laws and regulations, including, without limitation, all statutory provisions of or applicable to Title IV of the Higher Education Act of 1965, as amended (the
"HEA"), and all regulatory provisions prescribed under the HEA, including the requirements to: (a) use any funds that ACS administers under any
program of Federal student financial assistance administered pursuant to Title IV of the HEA ("Title IV, HEA program") and any interest or other earnings thereon solely for the purposes specified in
and in accordance with that Title IV, HEA program, to the extent that such compliance is required by applicable law or regulation and is related to the Services; and (b) to meet the standard of
conduct set forth in 34 C.F.R. Section 668.82(b)(2). 

        4.3    Referral to the Office of Inspector General by ACS.    To the
extent required or permitted by applicable law or regulations, including 34 C.F.R. Section 668.25, ACS may refer to the Office of Inspector General
("OIG") of the U.S. Department of Education for investigation any information indicating there is reasonable cause to believe that Customer might have
engaged in fraud or other criminal misconduct in connection with Customer's administration of any Title IV, HEA program or that a Customer's applicant for Title IV, HEA program assistance might have
engaged in fraud or other criminal misconduct in connection with his or her application for such assistance. Examples of the type of information that must be referred to the OIG pursuant to 34 C.F.R.
Section 668.25 are—(i) False claims by the institution for Title IV, HEA program assistance; (ii) False claims of independent student status; (iii) False claims of
citizenship; (iv) Use of false identities; (v) Forgery of signatures or certifications; and (vi) False statements of income. Customer acknowledges and agrees that ACS is entitled
to make such referrals of information, and to otherwise communicate and cooperate with the OIG with respect thereto, whenever there is reasonable cause to believe that Customer or any such applicant
engaged in fraud or other criminal misconduct. In no event shall ACS be liable to Customer or any of its employees or agents, or any applicant, or any third-party, as a result of or in connection with
any such referral, whether or not it is ultimately determined that any fraud or criminal misconduct in fact occurred so long as ACS had reasonable cause to believe that fraud or other criminal
misconduct might have occurred. Notwithstanding the foregoing, to the extent permitted by applicable law and regulation, ACS shall, prior to making any referral to the OIG as described in this
paragraph, (i) present to Customer and/or Customer's counsel the information that ACS proposes to refer to the 

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OIG,
(ii) provide Customer and/or Customer's counsel with a reasonable opportunity to review such information, (iii) discuss in good faith with Customer and/or Customer's counsel whether
such information is required to be reported to the OIG; and (iv) allow Customer to self-refer to the OIG the information regarding Customer if Customer agrees that there was
potential fraud or criminal misconduct by Customer. 

        4.4    Referral to the Office of Inspector General by Customer.    To
the extent required by 34 C.F.R. Section 668.16(g)(2), Customer may refer to the OIG of the U.S. Department of Education for
investigation any information indicating there is reasonable cause to believe that ACS may have engaged in fraud or other criminal misconduct in connection with ACS' Services involving any Title IV,
HEA program. ACS acknowledges that Customer is required to make such referrals of information, and to otherwise communicate and cooperate with the OIG with respect thereto, whenever there is
reasonable cause to believe that ACS engaged in fraud or other criminal misconduct. In no event shall Customer be liable to ACS or any of its employees or agents or any third-party, as a result of or
in connection with any such referral, whether or not it is ultimately determined that any fraud or criminal misconduct in fact occurred so long as Customer had reasonable cause to believe that fraud
or other criminal misconduct might have occurred. Notwithstanding the foregoing, to the extent permitted by applicable law and regulation, Customer shall, prior to making any referral to the OIG as
described in this paragraph, (i) present to ACS and/or ACS' counsel the information that Customer proposes to refer to the OIG, (ii) provide ACS and/or ACS' counsel with a reasonable
opportunity to review such information, (iii) discuss in good faith with ACS and/or ACS' counsel whether such information is required to be reported to the OIG; and (iv) allow ACS to
self-refer to the OIG the information regarding ACS if ACS agrees that there was potential fraud or criminal misconduct by ACS. 

        4.5    Joint and Several Liability.    Without affecting in any way
ACS' or Customer's limitations of liability and rights to indemnification otherwise set forth in this Agreement, and only to the extent required by 34 C.F.R. Section 668.25, ACS and Customer
are jointly and severally liable to the Secretary of Education for any violation by Customer or ACS, respectively, of any statutory or regulatory provision under Title IV, HEA programs. This provision
is solely for the benefit of the Secretary of Education, and neither ACS nor Customer shall not have the right to seek contribution or indemnification from the other party on the basis of this
provision unless there was negligence or intentional misconduct by the other party in performing its obligations under this Agreement. No third-party other than the Secretary of Education shall have
the right to enforce this provision or to seek contribution or indemnification from ACS or Customer on the basis of this provision. 

        4.6    ACS' Confirmation of Student Eligibility.    To the extent
required by applicable law and solely in the event that ACS disburses funds, including Title IV, HEA program funds, or delivers Federal Stafford Loan program proceeds to students, ACS shall act
consistently with its duty to act in the nature of a fiduciary under 34 C.F.R. Section 668.82 and use commercially reasonable efforts to confirm the eligibility of each student before making
any disbursement of funds (including funds received by Customer under the Title IV, HEA programs) or delivering any Federal Stafford Program proceeds to a student. ACS acknowledges that this
confirmation must include, but is not limited to, any applicable information contained in the records required under 34 C.F.R. Section 668.24. 

        4.7    ACS' Calculation of Refunds.    To the extent required by
applicable law and regulations and solely in the event that ACS disburses funds, including Title IV, HEA program funds, or delivers Federal Stafford Loan program proceeds to students, ACS shall
calculate and initiate refunds and repayments due to a student, the Title IV, HEA program accounts or the student's lender under the Federal Stafford Loan program in accordance with Customer's refund
policy, as provided to ACS by Customer, the provisions of 34 C.F.R. Section 668.21 and Section 668.22, and other applicable Title IV, HEA program regulations. It is agreed that at the
present time, ACS is not handling any funds for Customer and before that were to be changed this Agreement would have to be amended. 

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        4.8    Record Retention; Access to Records.    Each Party shall retain
records related to the Title IV, HEA program and the Services as required by 34 C.F.R. Section 668.24 and provide access to those records, for inspection and copying, by the Secretary of the
U.S. Department of Education or the Secretary's authorized representative, as required. Each Party shall further cooperate with, and provide timely and reasonable access to, an independent auditor,
the Secretary and Inspector General of the U.S. Department of Education, the Comptroller General of the United States or their authorized representatives, a guaranty agency in whose program Customer
participates and Customer's accrediting agency in the conduct of audits, investigations, program reviews or other reviews authorized by law. 

5.     Personnel  

        Customer and ACS are not joint employers of the employees of either Party for any purpose under this Agreement. During the term of this Agreement, any person
under the employ of Customer who may perform tasks related to the Services (the "Customer Employees") will at all time remain under Customer's
responsibility, including but not limited to, paying and providing any benefits to Customer Employees and performing payroll tax and withholding obligations and human resources functions for Customer
Employees. ACS is acting as an independent contractor in providing the Services. All employees of ACS shall remain ACS' employees for all purposes including, but not limited to, determining
responsibility for all payroll related obligations. ACS shall at all times be responsible for supervising, directing and coordinating the professional responsibilities and duties of ACS' personnel in
respect of their performance of the Services under this Agreement. ACS personnel are not intended to be "leased employees" to Customer as that term is defined under the Internal Revenue Code of 1986,
as amended. Except as otherwise expressly provided in this Agreement, ACS does not undertake to perform any obligations of Customer whether regulatory or contractual or to assume any responsibility
for the management of Customer's overall business except as specifically provided for with respect to the Services provided for herein and in the Task Order. 

6.     Customer Covenants, Representations and Warranties  

        6.1    Customer Covenants.    Customer covenants that it shall: 

        (a)   Provide
ACS with current, complete and accurate material information required by or appropriate for ACS to perform the Services; 

        (b)   Take
reasonable steps to ensure that all written, oral or electronic information and material provided by Customer to ACS (including, without limitation, all information
contained in student files) is current, accurate and complete, contains no material omissions, and is updated on a prompt and continuous basis; 

        (c)   Establish
and make available to ACS Customer's policies and procedures related to the Services; 

        (d)   Make
available the services of Customer's employees reasonably required to assist ACS in the transition of the Services to ACS; 

        (e)   Perform
any other function or task as reasonably required or necessary for the provision of the Services; 

        (f)    Ensure
all its policies and procedures pertaining to the Services comply with all federal, state and accrediting agency rules and requirements applicable to Customer,
including, without limitation, the HEA and any regulations or guidelines prescribed by the HEA, including policies and procedures designed to ensure that Customer meets all institutional, site,
program and student eligibility requirements under the HEA and any regulatory provisions prescribed under the HEA; 

4

 

        (g)   Determine
whether Customer is eligible to participate in the Title IV, HEA programs in accordance with the HEA and any regulatory provisions prescribed under the HEA; 

        (h)   Determine
whether each location or site at which Customer provides instruction is eligible for purposes of disbursing Title IV, HEA programs funds to students attending
at such location or site in accordance with the HEA and any regulatory provisions prescribed under the HEA; 

        (i)    Determine
whether each educational program provided by Customer is an eligible program as that term is defined under the HEA and the regulatory provisions prescribed
under the HEA; and 

        (j)    Determine
the general eligibility for each student who applies for Title IV, HEA program funds and provide, from time to time, specific information for each student
sufficient for ACS to determine eligibility of such student to receive such funds at such times in accordance with the HEA and any regulatory provisions prescribed under the HEA. 

        6.2    Representations and Warranties.    

        (a)    Organization of Customer.    Ashford University, LLC is a for-profit corporation, duly
organized, validly existing and in good standing under the laws of Iowa. Customer has full power and all necessary permits, licenses, approvals, authorizations, franchises and registrations to perform
its obligations hereunder. 

        (b)    Authorization; Enforceability.    The execution, delivery and performance of this Agreement by Customer and all
of the documents and instruments required by this Agreement to be executed by Customer are within the power of Customer and have been duly authorized by all necessary action by Customer. This
Agreement is, and the other documents and instruments required by this Agreement to be executed and delivered by Customer will be, when executed and delivered by Customer, the legal, valid and binding
obligations of Customer enforceable against Customer in accordance with their respective terms. 

        (c)    No Violation or Conflict.    The execution, delivery and performance of this Agreement by Customer do not
conflict with or violate any law or regulation applicable to Customer, the organizational documents of Customer or any contract or agreement to which Customer is a party or by which it is bound. 

        (d)    HEA Compliance.    Customer has not been limited, suspended, or terminated by the Secretary of the U.S.
Department of Education within the preceding five (5) years. 

        (e)    Accuracy of Information.    All written, oral or electronic information and material provided by Customer to
ACS (including, without limitation, all information contained in student files) is current, accurate and complete, contains no material omissions, and is updated on a prompt and continual basis. 

        Customer
acknowledges and agrees that Customer's breach of its covenants, representations and warranties under this Section 6 shall excuse ACS' performance hereunder to the extent
that such breach impairs ACS' ability to perform the Services hereunder or adversely affects ACS' ability to meet or comply with the requirements of Title IV, HEA program regulations that govern the
Services. 

7.     ACS Covenants, Representations and Warranties  

        7.1    ACS Covenants.    ACS covenants that it shall: 

        (a)   Take
all necessary steps, including backgrounds checks, to ensure the eligibility of all ACS employees or independent contractors to provide Services to Customer under
the HEA and any regulations or guidelines prescribed by the HEA; 

5

 

        (b)   Immediately
notify Customer of any investigation initiated against ACS by the U.S. Department of Education or any change in ACS' representations under
Section 7.2(d); 

        (c)   Take
reasonable steps to ensure that all written, oral or electronic information and material maintained by ACS in connection with the Services is current, accurate and
complete, is maintained on a secure server and is updated on a prompt and continuous basis; 

        (d)   Maintain
operational procedures pertaining to the Services which are consistent with Customer's operational policies, procedures and the requirements of this Agreement; 

        (e)   Ensure
all ACS' policies and procedures pertaining to the Services comply with all applicable federal and state rules and requirements applicable to third-party service
providers including, without limitation, the HEA and any regulations or guidelines prescribed by the HEA; and 

        (f)    Confirm
the eligibility for each student in advance of Customer making any disbursements in accordance with the HEA and any regulatory provisions prescribed under the
HEA. 

        7.2    Representations and Warranties.    

        (a)    Organization of ACS.    ACS is a corporation, duly organized, validly existing and in good standing under the
laws of Delaware and is duly qualified to do business in such state. ACS has full power and all necessary permits, licenses, approvals, authorizations, franchises and registrations to perform the
Services. 

        (b)    Authorization; Enforceability.    The execution, delivery and performance of this Agreement by ACS and all of
the documents and instruments required by this Agreement to be executed by ACS are within the power of ACS and have been duly authorized by all necessary action by ACS. This Agreement is, and the
other documents and instruments required by this Agreement to be executed and delivered by ACS will be, when executed and delivered by ACS, the legal, valid and binding obligations of ACS enforceable
against ACS in accordance with their respective terms. 

        (c)    No Violation or Conflict.    The execution, delivery and performance of this Agreement by ACS do not conflict
with or violate any law or regulation applicable to ACS, the organizational documents of ACS or any contract or agreement to which ACS is a party or by which it is bound. 

        (d)    HEA Compliance.    ACS has not been limited, suspended, or terminated by the Secretary of the U.S. Department
of Education within the preceding five years. Neither ACS, a person who exercises substantial control over ACS, or, to the best of ACS' knowledge, any employee or independent contractor who provides
Services has been convicted of, or has pled nolo contendere or guilty to, a crime involving the acquisition, use, or expenditure of Federal, State, or
local government funds, or has been administratively or judicially determined to have committed fraud or any other material violation of law involving those funds. 

        (e)    No Other Warranties.    EXCEPT AS SET FORTH IN THIS AGREEMENT, ACS DOES NOT MAKE ANY WARRANTIES WITH RESPECT TO
THE SERVICES OR OTHER DELIVERABLES PROVIDED UNDER THIS AGREEMENT AND EXPLICITLY DISCLAIMS ALL WARRANTIES, EXPRESS OR IMPLIED. 

        ACS
acknowledges and agrees that ACS' breach of its covenants, representations and warranties under this Section 7 shall excuse Customer's performance hereunder to the extent that
such breach impairs Customer's ability to perform hereunder or adversely affects Customer's ability to meet or comply with the requirements of Title IV, HEA program regulations that govern the
Services. 

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8.     Payments  

        8.1    Monthly Fees.    ACS will bill Customer each month during the
term of this Agreement based on number of "Actions" which occurred during the prior month. The definition of "Actions" and fees for each Action will be documented in each Task Order. 

        Customer
shall cause ACS to be paid the foregoing fees on a monthly basis within thirty (30) days of ACS' delivery of an invoice for the preceding month's Actions. 

        8.2    Invoices; Reimbursable Costs; Payments.    Customer shall
reimburse ACS, on a monthly basis within thirty (30) days of ACS' delivery of an invoice, for all of ACS' actual out-of-pocket costs
("Reimbursable Costs") for stationery, envelopes, brochures, postage, long distance charges and similar direct out-of-pocket
costs incurred in the performance of its duties under this Agreement. 

        8.3    Interest on Past Due Amounts.    If Customer's payment of the
monthly fees due under Section 8.1 or the Reimbursable Costs due under Section 8.2 is not received by ACS within forty-five (45) days after delivery of the invoice by
ACS, Customer shall pay, in addition to the amount so due, an interest charge of 1.5% per month for the portion of such amount which is overdue and outstanding and is not in good faith dispute. 

        8.4    Disputes.    In the event that Customer in good faith disputes
in writing charges billed by ACS to Customer within thirty (30) days of delivery of an invoice, then Customer may withhold only that portion of an invoice that it disputes in good faith. Within
ten (10) days of notifying ACS of a dispute, Customer shall describe in writing the basis for withholding payment. The Parties agree to make reasonable efforts to resolve any billing dispute
within thirty (30) days of Customer's notice described in the previous sentence. If disputes cannot be resolved within the prescribed timeframe, either Party shall have the right, upon written
notice, to submit the dispute for resolution pursuant to Section 17(f). 

9.     Term and Termination  

        9.1    Term.    The term of this Agreement will begin on the Effective
Date and will continue for a period of three (3) years; provided however, this Agreement will continue to remain in effect with respect to any Task Orders already issued at the time of such
termination, until such Task Orders are themselves terminated or performance thereunder is completed. Unless either Party gives written notice of termination to the other at least
[***] days before the scheduled expiration date, the term of this Agreement shall automatically be extended for successive [***] periods
thereafter, on the same terms and conditions unless the Parties mutually agree otherwise in writing. 

        9.2    Customer Termination for Convenience.    Customer may, at its
sole option, terminate this Agreement and/or any or all Task Orders outstanding, or any portion thereof, upon [***] days prior written notice and payment of any early
termination fee set forth in the Task Order(s). Upon the effective date of termination, ACS will inform Customer of the extent to which performance has been completed through such date, and collect
and deliver to Customer whatever work product then exists in a manner prescribed by Customer. ACS will be paid for all work performed through the date of termination, plus any termination charges that
may be specified in the Task Order(s) so terminated. 

        9.3    ACS Termination for Convenience.    ACS may, at its sole
option, terminate this Agreement and/or any or all Task Orders outstanding, or any portion thereof, upon [***] days prior written notice. Upon the effective date of
termination, ACS will inform Customer of the extent to which performance has been completed through such date, and collect and deliver to Customer whatever work product then exists in a manner
prescribed by Customer. ACS will be paid for all work performed through the date of termination. 

[***]
Confidential portions of this document have been redacted and filed separately with the Commission. 

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        9.4    Termination for Cause.    Either Party may terminate this
Agreement (or any Task Order) upon thirty (30) days prior written notice in the event of a material breach by the other Party of its obligations under this Agreement or any applicable Task
Order(s) and the Party said to be in breach fails to cure the condition of breach within thirty days after receipt of the notice of breach. 

        9.5    Termination for Misconduct.    Either Party may terminate this
Agreement effective upon notice if the other Party has engaged in criminal misconduct in its handling of Title IV, HEA program funds. 

        9.6    Termination for Non-payment.    ACS will have the
option, but not the obligation, to terminate a Task Order or suspend performance of the Services if Customer fails to pay when due undisputed amounts (including, without limitation, amounts determined
pursuant to Section 17(e) and 17(f)) below to be owing to ACS under such Task Order and Customer fails to cure such failure within ten (10) days after receipt of written notice from ACS. 

        9.7    Termination for Bankruptcy.    Either Party may immediately
terminate this Agreement by notice to the other Party if the other Party (a) becomes subject to a voluntary petition in bankruptcy or any voluntary proceeding relating to insolvency,
receivership, liquidation, or composition for the benefit of creditors, (b) becomes subject to an involuntary petition regarding the foregoing that is not dismissed within 60 days after
filing, (c) declares or admits publicly and in writing that it is insolvent or is unable to meets its debts as they mature, or (d) makes an assignment for the benefit of all or
substantially all of its creditors. 

        9.8    Other Termination Provisions.    Either Party to this Agreement
may terminate this Agreement as provided in Section 16, Force Majeure. 

        9.9    Payment for Services upon Termination or Expiration.    If this
Agreement or a Task Order expires or is terminated for any reason, ACS shall be entitled to payment for all Services performed prior to such termination or expiration and during the period from the
date of the notice of termination through the effective date of such termination, plus any applicable interest charge, all as provided in Section 8.3. Upon an expiration of this Agreement
pursuant to Section 9.1, the Parties shall handle their obligations hereunder in accordance with the Termination Transitional Period Guidelines set forth in Section 9.10. The Parties
agree that it is important that both Parties adhere to these Termination Transitional Period Guidelines in order not to disrupt the education of the students or the reputation of the Customer or ACS
with the Department of Education. 

        9.10    Termination Transitional Period.    Upon the termination of
this Agreement by either Party, there shall be a transitional period, as follows: 

        (a)   Customer
shall have the right but not the obligation to continue to send new students to ACS for a period of ninety (90) days after delivery of a notice of
termination. ACS must accept these new students and shall be responsible for processing them as documented in the respective Task Order for the remainder of the Certified Year for the individual
student in which the notice of termination was delivered. 

        (b)   Following
the notice of termination, ACS shall also be responsible, if requested by Customer, for processing all students that it had previously received for the balance
of the Certified Year for the individual student in which the notice of termination has been delivered. 

        (c)   All
normal fees and charges pursuant to the terminated Task Order shall continue to apply to students who are handled by ACS during this Termination Transitional Period. 

        (d)   The
terms and conditions of the terminated Agreement and the Task Order shall continue to apply to Services provided by ACS during this Termination Transitional Period. 

8

 

 

        (e)   Notwithstanding
the forgoing, ACS shall have no obligation to provide Termination Transitional Period services pursuant to this Section 9.10 if: (i) a Task
Order has been or could have been terminated pursuant to Section 9.6 or Section 9.7, or (ii) if there are outstanding invoices that have not been paid pursuant to
Section 8. 

        The
procedure referred to in Section 9.10 (a) through (e) is referred to herein as "Termination Transitional Period Guidelines." 

        The
term "Certified Year" shall mean the period of time up to 12 months determined by the original packaging by ACS. 

        9.11    ACS' Obligations upon Termination.    

        (a)   If
ACS or Customer terminates this Agreement in accordance with its terms, ACS shall, "cooperate" with Customer's New Servicer under the Title IV, HEA programs in
transitioning the Services and promptly return to Customer, or at its direction, to Customer's New Servicer, the following: 

        (i)    all
records in ACS' possession pertaining to Customer's participation in the Title IV, HEA programs for which Services are no longer provided; provided, however, that
ACS may retain copies of any records in its possession subject to the provisions of the Confidentiality Section of this Agreement; and 

        (ii)   promptly
delivers to Customer the records in ACS' possession pertaining to the students that ACS is processing during the Termination Transitional Period as soon as ACS
is no longer providing Services
to that student; provided, however, that ACS may retain copies of any records in its possession subject to the provisions of the Confidentiality section of this Agreement; and 

        (b)   For
purposes of this Section 9.11, "cooperation" means to provide the Customer's New Servicer with (i) all Customer files; (ii) a brief status
report on all students being turned over to the Customer's New Servicer; and (iii) answer verbal or written questions from Customer's New Servicer, which in the aggregate do not exceed fifteen
hours. If the category (iii) questions exceed fifteen hours after the receipt of Notice of Termination, ACS will bill for its time at two (2) times the employee's hourly wage rate per
one hour time segment (broken down into .10 increments) plus materials used at ACS' cost and shall provide Customer with a detailed itemization of the services and the time involved. 

        (c)   ACS
is not responsible for training Customer's New Servicer and it is not responsible for the conversion of the Customer's records to the Customer's New Servicer if the
Customer's New Servicer has a different computer system and/or a different software program than ACS. 

        (d)   Notwithstanding
the forgoing, ACS shall have no obligation to provide services pursuant to this Section 9.11 if: (i) a Task Order has been or could have
been terminated pursuant to Section 9.6 or Section 9.7, or (ii) if there are outstanding invoices that have not been paid pursuant to Section 8. 

10.   Customer's Facilities and Assets  

        10.1    Access.    Beginning on the Effective Date, Customer shall
provide ACS with access to and use of all of its owned, leased or licensed real and personal property (including but not limited to all hardware and software) reasonably required by ACS to perform its
obligations under this Agreement (the "Asset(s)"), and shall maintain the Assets in good working order as reasonably required to permit ACS to perform
its obligations under this Agreement. ACS shall use such access in accordance with Customer's policies and procedures governing access to and use of Customer's facilities, provided that such policies
and procedures shall not unduly restrict ACS from performing ACS' duties and obligations under this Agreement. 

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        10.2    Software Licenses; Third Party Consents.    Throughout this
Agreement, Customer shall have the rights (whether by ownership or by license from the owner thereof) to use in its business operations, and shall maintain in good working order, all systems and
software programs necessary to allow ACS to perform the Services in accordance with this Agreement. To the extent the use of any of such Assets requires the consent of any third-party, or a security
clearance is needed for ACS to have access (either on-site or remote) to any Asset, Customer shall obtain such consent and/or security clearance for ACS at its sole cost and expense. In
addition, Customer shall make available all documentation reasonably required by ACS to operate Customer's software and third-party software, including, without limitation, operations manuals, user
guides, specifications, backup procedures, recovery guidelines, and restart guidelines. Customer shall remain responsible for all obligations owed by it to any third-party related to this
Section 10.2 as long as ACS follows such third parties' guidelines for access and use of the Assets. 

11.   Protection of Confidential Information; GLB Act Compliance  

        In the process of negotiating and effecting the transactions contemplated hereunder, each Party will have access to confidential information made available by the
other Party ("Confidential Information"). Confidential Information shall specifically and without limitation include: (a) all records relating to
Customer's students provided to ACS and (b) this Agreement and any Task Orders, exhibits and amendments thereto., but shall not include information that (i) is generally available to the
public, (ii) was available to the Party holding such information from a source other than the other party to this Agreement, or (iii) has been independently acquired by the Party holding
such information. As to all Confidential Information: 

        (a)   The
receiving Party shall preserve the secrecy of Confidential Information, and, consistent with that obligation: 

        1.     shall
not use, or induce or permit others to use, any Confidential Information for any other purpose whatsoever, nor at any time, except in carrying out its obligations
under this Agreement, directly or indirectly, print, copy or otherwise reproduce, in whole or in part, any Confidential Information, without the prior written consent of the disclosing Party, nor
shall the receiving Party disclose or reveal any Confidential Information to anyone except those of its employees, agents or consultants with a need to know; 

        2.     agrees
that all third parties to whom receiving Party reveals any Confidential Information, whether revealed in compliance with or in breach of this Agreement, shall be
bound by the terms of, and be jointly and severally liable under, this Agreement and that it shall be the obligation of receiving Party to bind, and obtain the adherence of, every such party to this
Agreement; 

        3.     shall,
upon the disclosing Party's request, or upon termination of this Agreement, whichever occurs first, return to the disclosing Party all documents or materials
relating to or containing any Confidential Information including any such material created by or on behalf of the receiving Party; and 

        4.     acknowledges
that all Confidential Information is and shall remain the property of the disclosing Party. 

        (b)   If
the receiving Party is requested or required to disclose Confidential Information pursuant to a subpoena or an order of a court or governmental agency, the receiving
Party shall: 

        1.     Promptly
notify the disclosing party of the existence, terms, and circumstances surrounding the governmental request or requirement; 

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        2.     Consult
with the disclosing Party on the advisability or taking steps to resist or narrow the request; 

        3.     If
disclosure of Confidential Information is required, furnish only such portion of the Confidential Information as the receiving Party is advised by counsel is legally
required to be disclosed; and 

        4.     Cooperate
with the disclosing Party in its efforts to obtain an order or other reliable assurance that confidential treatment be accorded to that portion of the
Confidential Information that is required to be disclosed. 

        (c)   Customer
will (i) request confidential treatment for this Agreement and related materials under Rule 406 of the Securities Act of 1933, as amended,
Rule 24b-2 of the Securities Exchange Act of 1934, as amended, and SEC Rule 83, as such Rules are applicable, (ii) request review of any Securities and Exchange
Commission decision denying such treatment, if requested by ACS; and (iii) to the extent permitted by law and applicable SEC regulations and to the extent requested by ACS, withdraw the
contract and any related material submitted to the Securities and Exchange Commission if such confidential treatment is denied. Customer shall also promptly inform ACS of Customer's and the Securities
and Exchange Commission's actions and determinations which are related to the prior sentence. 

        (d)   To
the extent required by applicable law or regulation, in performing its services, ACS shall comply with the Gramm-Leach-Bliley Act, 15 U.S.C. 6801  et seq. (the "GLB
Act"), and all applicable regulations promulgated thereunder, relating to the privacy
and security of personally identifiable consumer data. This Section 11 shall survive termination of this Agreement. Any Party making a disclosure of Confidential Information shall bear the
legal responsibility resulting from that disclosure to any third party, including but not limited to liability to the Department of Education and any student whose Confidential Information is
disclosed. 

        (e)   The
obligations to protect Confidential Information as set forth in this Section 11 hereof shall survive the termination of this Agreement. 

12.   Contractors  

        ACS shall have the right to use contractors and subcontractors to perform the Services hereunder, provided that all such contractors and subcontractors will be
subject to the supervision and management of ACS and will comply with the requirements of Title IV, HEA program regulations regarding the provision of Services. ACS shall have the right to disclose
Customer's Confidential Information to, and/or allow access to such by, any of ACS' contractors, subcontractors, agents and/or other third parties supplying products, services or systems as such
disclosure of Confidential Information as may be reasonably required to permit such contractor, subcontractor, agent or third-party to assist ACS in its performance of obligations under this
Agreement, provided that ACS shall require such contractors, subcontractors, agents and/or other third parties to execute an appropriate nondisclosure agreement and shall take such other steps as may
be required to protect Confidential Information as required under Section 11 hereof. ACS shall be responsible as provided for in this Agreement for the disclosure of any Confidential
Information by its contractors or subcontractors. 

13.   Indemnification and Insurance  

        13.1    Customer Indemnification.    Customer shall indemnify and hold
ACS, its officers, employees, affiliates, agents and subcontractors harmless against, and will reimburse ACS for, any claim, liability, judgment, settlement, damage, payment, loss, cost or expense
(including reasonable 

11

 

attorneys'
fees) ("Claim") incurred by or asserted against ACS or such other parties at any time after the Effective Date to the extent the Claim arose
from or relates to: 

        (a)   Negligent
acts or omissions or willful misconduct by Customer in performing its obligation under this Agreement; 

        (b)   Customer's
material breach of its covenants, representations or warranties under this Agreement; and 

        (c)   Claims
by third parties arising out of or relating to any obligation not expressly assumed by ACS under this Agreement, including without limitation any claim arising
from ACS' compliance with specific directions or instructions from Customer and any claim by the Secretary of Education, a guaranty agency, or a student loan lender against ACS arising out of ACS'
violation of the HEA, to the extent such claims exceed the liability limitation set forth in Section 14 hereof.. 

        13.2    ACS Indemnification.    ACS shall indemnify and hold Customer,
its officers, directors, employees, affiliates and agents harmless against, and will reimburse Customer for, any claim, liability, judgment, settlement, damage, payment, loss, cost or expense
(including reasonable attorney's fees) ("Claim") incurred by or asserted against Customer by a third-party at any time after the Effective Date to the
extent the Claim arose from or relates to: 

        (a)   Negligent
acts or omissions or willful misconduct of ACS, its officers, employees, affiliates, agents, contractors and subcontractors in providing Services or in failing
to provide Services under this Agreement 

        (b)   [***]
and 

        (c)   Any
theft or other misappropriation of Customer's property or funds by ACS or any of ACS' employees, affiliates, agents, contractors and subcontractors. 

        13.3    Indemnification Procedures.    

        (a)   Promptly
after receipt by an indemnitee of any written claim or notice of any action giving rise to a claim for indemnification by the indemnitee, the indemnitee shall
so notify the indemnitor and shall provide copies of such claim or any documents relating to the action. No failure to so notify an indemnitor shall relieve the indemnitor of its obligations under
this Agreement except to the extent that the failure or delay is prejudicial. Within thirty (30) days following receipt of such written notice, but in any event no later than ten
(10) days before the deadline for any responsive pleading, the indemnitor shall notify the indemnitee in writing (a "Notice of Assumption of Defense") if the indemnitor elects to assume control
of the defense and settlement of such claim or action. 

        (b)   If
the indemnitor delivers a Notice of Assumption of Defense with respect to a claim within the required period, the indemnitor shall have sole control over the defense
and settlement of such claim; provided, however, that (i) the indemnitee shall be entitled to participate in the defense of such claim and to employ counsel at its own expense to assist in the
handling of such claim and (ii) the indemnitor shall obtain the prior written approval of the indemnitee before entering into any settlement of such claim or ceasing to defend against such
claim. After the indemnitor has delivered a timely Notice of Assumption of Defense relating to any claim, the indemnitor shall not be liable to the indemnitee for any legal expenses incurred by such
indemnitee in connection with the defense of such claim; provided, however, that the indemnitor shall pay for separate counsel for the indemnitee to the extent that conflicts or potential conflicts of
interest between the Parties so require. In addition, the indemnitor shall not be required to indemnify the indemnitee for any amount paid by such indemnitee in the settlement of any claim 

[***]
Confidential portions of this document have been redacted and filed separately with the Commission. 

12

 

for
which the indemnitor has delivered a timely Notice of Assumption of Defense if such amount was agreed to without prior written consent of the indemnitor, which shall not be unreasonably withheld
or delayed in the case of monetary claims. An indemnitor may withhold consent to settlement of claims of infringement affecting its proprietary rights in its sole discretion. 

        (c)   If
the indemnitor does not deliver a Notice of Assumption of Defense relating to a claim within the required notice period, the indemnitee shall have the right to defend
the claim in such a manner as it may deem appropriate, at the cost and expense of the indemnitor. The indemnitor shall promptly reimburse the indemnitee for all such costs and expenses upon written
request therefor. 

        13.4    Subrogation.    In the event an indemnitor indemnifies an
indemnitee pursuant to this Article, the indemnitor shall, upon payment in full of such indemnity, be subrogated to all of the rights of the indemnitee with respect to the claim to which such
indemnity relates. 

        13.5    Processing Error.    Processing Errors in the Services and the
responsibility for such errors will be addressed in the Task Order. 

        13.6    ACS' Insurance.    ACS shall maintain during the term of this
Agreement, and for a reasonable "tail" period thereafter, policies for general liability, employee dishonesty and fraud and errors & omissions insurance including internet liability with
insurers reasonably acceptable to Customer and in amounts customarily maintained by entities similarly situated. ACS shall name Customer as an additional insured on the general liability policy and
provide Customer with certificates of such insurance upon request. 

        13.7    Survival.    This Section 13 shall survive termination
of this Agreement. 

14.   Limitation of Damages  

        14.1    ACS.    Notwithstanding anything to the contrary, ACS' maximum
aggregate liability relating to the Services rendered under this Agreement (regardless of form of action, whether in contract, tort, negligence or otherwise) shall not exceed
[***]. ACS shall have no liability for (i) any violation of applicable law or regulation by Customer, or (ii) the non-payment or uncollectibility of
any student receivable in relation to any student file serviced under this Agreement. 

        14.2    Customer.    Except for Claims related to indemnification or
Claims arising from a violation of the law by Customer, Customer's maximum aggregate liability relating to its obligations under this Agreement (regardless of form of action, whether in contract,
tort, negligence or otherwise) shall not exceed the actual damages incurred by ACS as a result of the event(s) giving rise to the liability. Customer shall have no liability for any claim by ACS to
the extent it arose from any violation of applicable law or regulation by ACS. 

        14.3    Both Parties to Each Other.    Neither Party shall have any
liability for any special, incidental, punitive or consequential loss, damage, or expense (including without limitation, lost profits or opportunity costs) caused by the acts or omissions of it or its
agents, even if advised of their possible existence. The limitation of damages contained in Section 14.1 shall not apply to damages owed to (i) a third party pursuant to a disclosure of
Confidential Information pursuant to the last sentence in Section 11 or (ii) owed to the U.S. Department of Education or any of its regulatory divisions. 

[***]
Confidential portions of this document have been redacted and filed separately with the Commission. 

13

 

15.   Change in Circumstances  

        The occurrence of (a) any event or transaction which the Parties mutually agree will materially increase or decrease the size or nature of the operations
of Customer that, in turn, affects the scope, manner, nature or quantity of the Services, or (b) any change in any laws, rules or regulations that the Parties mutually agree will materially
increase or decrease the size or nature of the operations of Customer that, in turn, affects the scope, manner, nature or quantity of the Services, including without limitation any change in the
interpretation or process or enforcement policies, procedures or practices related to any third-party servicer regulations promulgated by the U.S. Department of Education, shall be considered a change
in the scope of services ("Change in Scope"). Each Change in Scope shall be documented in the form attached hereto as the CHANGE ORDER REQUEST ADDENDUM.
ACS and Customer shall promptly meet to analyze the change and determine the impact to this Agreement. ACS shall have no obligation to commence work in connection with any Change in Scope until the
impact of such change is agreed upon by the parties and the Agreement is amended. In the event of an impact to the fees as documented in the respective Task Order, ACS and Customer shall negotiate in
good faith an equitable adjustment in the fees payable to ACS. If such fee impact cannot be agreed upon within thirty (30) business days, either Party shall have the right, upon written notice,
to submit the dispute for resolutions pursuant to Section 17(f). 

16.   Force Majeure  

        "Force Majeure" means unforeseeable causes beyond the reasonable control of and which occur without the material
fault or negligence of the Party claiming Force Majeure, including, without limitation, acts of God, wars, insurrections, riots, acts of any governmental units, strikes, blackouts, explosions, fires,
floods, earthquakes, landslides, lightning, wind, terrorism, sabotage, any failure of equipment or other similar events. If as a result of Force Majeure a Party hereto is rendered wholly or partly
unable to perform its obligations under this Agreement, that Party shall be excused from whatever performance is affected by the Force Majeure to the extent so affected, provided that: 

        (a)   The
Party claiming relief gives the other Party prompt written notice describing the particulars of the Force Majeure. 

        (b)   The
permitted suspension of performance is of no greater scope and of no longer duration than is required by the Force Majeure. 

        (c)   A
Force Majeure may continue only so long as the Party claiming Force Majeure is exercising commercially reasonable efforts to eliminate the Force Majeure condition. If
at any time during the period of Force Majeure, the non-performing Party fails to undertake or ceases undertaking commercially reasonable efforts to remedy its inability to perform, then
the non-performing Party shall no longer be excused from its performance pursuant to Section 13. 

        (d)   If
the Force Majeure condition materially affects a Party's performance hereunder for a period greater than ten (10) business days, then the other Party shall be
entitled to terminate this Agreement upon giving written notice to the non-performing Party. In the case that such Notice of Termination is given then the Termination Transitional Period
Guidelines in Section 9.2 shall apply. 

17.   Miscellaneous  

        (a)    Trademarks, Etc.    Neither Party shall use the other Party's name, trademarks, service marks, logos, trade
names and/or branding without such Party's prior written consent. Notwithstanding anything herein to the contrary, ACS may reference or list Customer's name and/or a general description of the
Services/project. 

        (b)    ACS Materials.    Upon termination of this Agreement, ACS shall deliver to Customer a copy in electronic form
of all student records for students that were handled or processed by ACS during the 

14

 

term
of the Agreement. The electronic data shall be in a format that is readily usable by Customer. All materials created, produced, delivered or developed by ACS during the performance of the
Services and during the proposal, negotiation and transition process shall be owned exclusively by ACS. Customer shall return all such materials to ACS, promptly following termination of this
Agreement or ACS' written request, without retaining copies, and hereby assigns any rights it or its personnel may have in such materials to ACS. 

        (c)    No Assignment.    This Agreement may not be assigned or otherwise transferred by either Party without the prior
express written consent of the other Party. 

        (d)    Notices.    Any notices given pursuant to this Agreement shall be in writing, delivered to the respective
addresses set forth herein (or such other address for either Party as such Party may hereafter specify in writing to the other Party), and shall be considered given when received. 

        (e)    Governing Law.    The laws of the State of Delaware shall govern this Agreement, without regards to its
conflict of law principles. 

        (f)    Arbitration.    In the event of any disputes, claims or controversies arising out of or relating to this
Agreement, either party may give written notice to the other party setting forth the nature of such dispute ("Dispute Notice"). The parties shall meet and confer to discuss the dispute in good faith
within five days of the other party's receipt of a Dispute Notice in an attempt to resolve the dispute informally among the parties. The parties shall meet at such date(s) and time(s) as are mutually
convenient and shall have 10 business days to resolve the dispute. 

        Any
and all disputes, claims or controversies arising out of or relating to this Agreement that are not resolved by the parties' mutual agreement shall be resolved by final and binding
arbitration as the exclusive remedy in accordance with rules of the American Arbitration Association in effect at the time arbitration is initiated or another professional dispute-resolution
organization mutually acceptable to the parties (the "Arbitration Organization"). Unless otherwise agreed by the Parties, any arbitration session under this Section 17(e) will be held at the
Arbitration Organization's office in Wilmington, Delaware. BY SIGNING THIS AGREEMENT, EACH PARTY AGREES THAT IT IS GIVING UP ITS RIGHT TO FILE A LAWSUIT IN A COURT OF LAW AND TO HAVE ITS CASE HEARD BY
A JUDGE AND/OR JURY. 

        For
disputes in an amount under $100,000, the parties shall, within 10 business days of the termination of informal discussions, mutually agree upon an arbitrator. The selected
arbitrator must have experience in the for-profit education industry. If the parties cannot agree upon an arbitrator within the stated time period, the parties may request that an
arbitrator be appointed for them by the Arbitration Organization. This arbitrator will serve as the arbitrator for all future disputes in an amount under $100,000 for the following 12 months. 

        For
disputes in an amount of $100,000 or more, the parties shall meet with a mediator within 10 business days of the termination of informal discussions. If within 10 business days of
first meeting the parties cannot resolve the dispute through mediation, the parties shall proceed to arbitration. Each party shall have 10 business days to select one arbitrator on their own behalf.
The selected arbitrators must have experience in the for-profit education industry. Within five business days of the selection of the second arbitrator, the selected arbitrators will
nominate a neutral and impartial third arbitrator, who has experience in the for-profit education industry. This board of arbitrators shall serve as the arbitrators for all future disputes
in an amount of $100,000 or over for the following 12 months. 

        The
arbitrator's award shall be final and binding on all parties, and neither party shall have any right to contest or appeal the arbitrator's award except on the grounds expressly
provided by the United States Arbitration Act. The parties will separately bear their own costs and expenses (including legal fees) of participating in the arbitration process. Responsibility for the
arbitrator's fees and expenses shall be determined as part of the arbitrator's award. 

15

 

        Notwithstanding
the forgoing, ACS shall not be required to arbitrate a dispute involving the non-payment of undisputed fees or charges. 

        (g)    Email Communications.    Customer and ACS acknowledge that: (1) ACS and Customer may correspond or
convey documentation to each other via Internet e-mail unless the other Party expressly requests otherwise, (2) neither Party has control over the performance, reliability,
availability, or security of Internet e-mail, and (3) neither Party shall be liable for any loss, damage, expense, harm or inconvenience resulting from the loss, delay,
interception, corruption, or alteration of any Internet e-mail due to any reason beyond such Party's reasonable control, provided that notwithstanding the foregoing, ACS and Customer both
agree to adopt security measures with respect to such communications and data that are consistent with all applicable federal or state laws or regulations and that are reasonable under the
circumstances and consistent with generally-accepted industry best practices. 

        (h)    Entire Agreement; Amendments and Waivers; Illegality.    This Agreement constitutes the entire understanding
and agreement between Customer and ACS with respect to the subject matter hereof, supersedes all prior oral and written communications, and may only be amended, modified or changed (including changes
in scope or nature of the Services or charges) pursuant to an instrument executed by both parties. No term of this Agreement shall be deemed waived, and no breach of this Agreement excused, unless the
waiver or consent is in writing signed by the Party granting such waiver or consent. If any term or provision of this Agreement is determined to be illegal or unenforceable, such term or provision
shall be deemed stricken, and all other terms and provisions shall remain in full force and effect. 

        (i)    Notices.    Whenever under this Agreement one Party is required or permitted to give notice to the other, such
notice will be deemed given when delivered in hand or three (3) business days after the date mailed by United States mail, certified mail, return receipt requested, postage prepaid, or one day
after the date sent via a nationally recognized overnight courier service, and addressed as follows: 

In
the case of ACS: 

Affiliated
Computer Services, Inc.

1150 E. University Drive, Suite 300

Tempe, AZ 85281

Attn: Kathleen C. Harris 

With
a copy to: 

Affiliated
Computer Services, Inc.

One World Trade Center Suite 2200

Long Beach, CA 90831

Attn: Steve Allen 

With
a copy to: 

Affiliated
Computer Services, Inc.

2828 North Haskell

Dallas, TX 75204

Attn: Group President—Commercial Solutions Group 

In
the case of Customer: 

Ashford
University, LLC

13500 Evening Creek Drive North, Suite 600

San Diego, CA 92128

Attn: Daniel J. Devine 

16

 

With
a copy to: 

Ashford
University, LLC

13500 Evening Creek Drive North, Suite 600

San Diego, CA 92128

Attn: General Counsel 

        Either
Party may change its address for notification purposes by giving the other three (3) days prior written notice of the new address and the date upon which it will become
effective. 

        (j)    Conflict Between This Agreement and Any Task Order.    Should there be a conflict between this Agreement and
any Task Order, the terms of this Agreement shall control unless the Task Order specifically identifies the provisions in the Agreement that it supersedes. 

        (k)    Notification of Change in Control of ACS.    Within ten (10) days after a Change of Control in ACS, ACS
shall notify Customer of such Change of Control. A Change of Control shall mean the acquisition of 50.1% or more of an interest in ACS by one entity or affiliated entities. 

18.   Invoice Audit  

        18.1    Audits.    ACS will maintain records to substantiate ACS'
charges under each Task Order. Customer will have access to such records for purposes of audit, either through its own representatives or through an accounting firm selected and paid by Customer, upon
seventy two (72) hours prior notice to ACS.
Any such review of ACS' records will be conducted at reasonable times during normal business hours, no more than once quarterly, and be subject to ACS security and confidentiality requirements. 

        18.2    Limitations.    Notwithstanding the intended breadth of
Customer's audit rights, Customer shall not be given access to (i) the proprietary information of other ACS customers or contracts, or (ii) ACS locations that are not related to Customer
or the Services, or (iii) ACS' internal costs. Further, ACS shall not be required to cooperate with or grant access to its records to any direct competitor of ACS. 

        18.3    Cooperation.    ACS will reasonably cooperate in the audits
and reviews and furnish requested information on a timely basis; provided, however, that (a) if such assistance requires a substantial level of resources at ACS, ACS shall notify Customer in
advance that there will be a delay if the audit is to proceed at a certain specified time, and if Customer decides to proceed with the audit, such assistance shall be chargeable at the time and
materials rates set out in the applicable Task Order, and (b) to the extent that any audit substantially interferes with, hinders, or delays ACS' performance of the Services, ACS will be
excused from any applicable service levels stated in a Task Order for the period of time that is equal to the time of such substantial interference and any associated penalties and/or credits that may
be due to Customer will be abated, but only for the period of time that is equal to the time of such substantial interference. 

[Signature
page to follow on next page.] 

17

 

        IN WITNESS WHEREOF, the parties hereto have executed this Agreement effective as of the date first set above.

							
	ACCEPTED AND AGREED:	 	ACCEPTED AND AGREED:
	

Affiliated Computer Services, Inc.	
 	
Ashford University, LLC
	
 By:	
 	
/s/ KENT SCHNACKER

 	
 	
 By:	
 	
/s/ JANE MCAULIFFE

 
	
 Name:	
 	
Kent Schnacker

 	
 	
Name:	
 	
Jane McAuliffe

 
	
 Title:	
 	
Senior Managing Director

 	
 	
Title:	
 	
CEO

 
	
 Date:	
 	
  

 	
 	
Date:	
 	
12-31-08

 

18

 

 
 

  Task Order One(1)
  Centralized Financial Aid Processing
  Affiliated Computer Services, Inc. and Ashford University, LLC    
    

        This Task Order One (1) (Task Order) is entered into January 1, 2009 pursuant to the General Services Agreement
("Agreement") by and between Affiliated Computer Services, Inc. ("ACS") and Ashford University, LLC ("Customer"). Except as may otherwise be provided in this Task Order, all terms and
conditions of the Agreement shall remain unmodified and in full force and effect. Should there be a conflict between the Agreement and this Task Order, the terms of the Agreement shall control unless
this Task Order specifically identifies the provisions in the Agreement that it supersedes. 

 
 

  I. The Service    
    

        Effective January 1, 2009, ACS will provide Call Center and Transactional Processing services relating to the functions of ISIR
document collection/review, Verification/C-code/Conflicting Information resolution, Packaging/Certification/Revision, Disbursement Eligibility Review and Title IV Refund Processing for
Customer's complete financial aid student populations ("Services"). 

 
 

  II. Scope of Service    
    

        The goal of the Services is to support Customer's objective of centralizing the Services to improve student focus, enhance Customer's
compliance with the rules and regulations of all regulatory bodies having jurisdiction over Customer, and support Customer's student show rate and growth objectives. Any changes requested or required
by Customer to ACS's processes, procedures or types of students serviced will be subject to the Change Request process in section 3.1 of the Agreement and the parties will negotiate in good
faith changes to the Services Fees required by the change. 

					
	Service

 
	 	High Level Scope 
	

 Outbound/Inbound Call Center Services	 	•

•	 	Prioritize student populations according to agreed upon student priorities.

Contact students to obtain required information.
	

 	 	•	 	Respond to inbound student calls and communicate requested follow-up to Customer.
	

 	 	•	 	Update ACS and Customer's system(s).
	

 	 	•	 	Monitor adherence to agreed upon Service Level Agreements (SLA).
	

 	 	•	 	Perform routine quality review of ACS work product.
	

 	 	•	 	Continually monitor the processes to identify and implement compliant and efficient improvements.
	

 	 	•	 	Provide agreed upon reporting.
	ISIR Review and Verification/C-code/Conflicting Information Resolution	 	•

•

•	 	Prioritize student populations according to agreed upon student priorities.

Review ISIR records to identify if Verification, C-code or Conflicting Information issues exist.

Receive, scan, index and review received documents.
	 	 	•	 	Perform Verification, C-code or Conflicting Information resolution for those students providing the required information.
	 	 	•	 	Update ACS, External and Customer's system(s).
	 	 	•	 	Monitor adherence to agreed upon Service Level Agreements (SLA).
	 	 	•	 	Perform routine quality review of ACS work product.
	 	 	•	 	Continually monitor the processes to identify and implement compliant and efficient improvements.
	 	 	•	 	Provide agreed upon reporting.

1

 

					
	Service

 
	 	High Level Scope 
	

 Packaging/Certification/Revision	 	•	 	Prioritize student populations according to agreed upon student priorities.
	

 	 	•	 	Determine student eligibility, award and certify.
	

 	 	•	 	Process Revisions to student awards as requested by Customer.
	

 	 	•	 	Update ACS, External and Customer's system(s).
	

 	 	•	 	Monitor adherence to agreed upon Service Level Agreements (SLA).
	

 	 	•	 	Perform routine quality review of ACS work product.
	

 	 	•	 	Continually monitor the processes to identify and implement compliant and efficient improvements.
	

 	 	•	 	Provide agreed upon reporting.
	Disbursement Eligibility Review	 	•	 	Prioritize student populations according to agreed upon student priorities.
	 	 	•	 	Review student eligibility and adjust as applicable.
	 	 	•	 	Update ACS, External and Customer's system(s).
	 	 	•	 	Monitor adherence to agreed upon Service Level Agreements (SLA).
	 	 	•	 	Perform routine quality review of ACS work product.
	 	 	•	 	Continually monitor the processes to identify and implement compliant and efficient improvements.
	 	 	•	 	Provide agreed upon reporting.
	

 Title IV Refund Processing	 	•	 	Prioritize student populations according to agreed upon student priorities.
	

 	 	•	 	Review students and complete calculations, returns and exit processing as applicable.
	

 	 	•	 	Update ACS, External and Customer's system(s).
	

 	 	•	 	Monitor adherence to agreed upon Service Level Agreements (SLA).
	

 	 	•	 	Perform routine quality review of ACS work product.
	

 	 	•	 	Continually monitor the processes to identify and implement compliant and efficient improvements.
	

 	 	•	 	Provide agreed upon reporting.

 
 

  III. Fees    
    

3.1   Service Fees  

        ACS will provide the Services (as documented in Section I) based upon the following service categories ("Actions"): 

        Call Center

	•
	Inbound Calls   

	•
	Outbound Accounts Worked   

	•
	Emails 

        Transactional Processing

	•
	Pre-Cert (Intake)   

	•
	Imaging   

	•
	ISIR Review (Includes initial ISIR review and Verification/C-code/Conflicting Information Review)  

	•
	Certification 

2

 

	•
	New Students   

	•
	Renewal Students   

	•
	Revisions   

	•
	Disbursement Review   

	•
	R2T4 (Refund)Calculations 

        ACS
will bill monthly for each Action based upon the below Tiered Unit Pricing table and using the Max Volume Trigger table as the driver for Tiered Unit Price adjustments : 

[***]

[***] 

[***] 

[***]

[***]
Confidential portions of this document have been redacted and filed separately with the Commission. 

3

 

[***] 

3.2   Service Level Agreement Service Fee Adjustments  

        The following outlines the actions to be taken in the event ACS fails to meet the SLA requirements as documented in Section 5.7: 

        If
based upon a monthly average ACS fails to meet [***] of the SLAs in effect in [***] or if ACS fails to meet
[***] SLA in effect in any [***] months, other than due to reasons beyond ACS' reasonable control (e.g., volumes greater than
[***] of expectation,
force majeure events, changes in applicable laws or regulations, changes to or malfunctions of Customer systems used by ACS, etc.), Customer may give ACS written notice of such failures (identifying
in such notice the failures with particularity). Upon receipt of written notice, the Parties will promptly consult to determine mutually in good faith if in fact such failures have occurred in such
month; if such failures have occurred, ACS shall accept such failure notice. If ACS has not materially cured such failures so as to reduce the number of such failures to [***]
for [***], then the applicable Action fee will be reduced by [***] for the current month and [***]. Notwithstanding the
foregoing, the foregoing reductions shall not be cumulative or exceed [***]. 

3.3   Incentive Based Fees  

        Customer considers the below items key to its operation and will pay the indicated rate premium when ACS achieves the corresponding desired results. Incentives
will be invoiced as a new line item entry on the monthly invoice for the last month in the applicable calendar quarter (quarters are based on a calendar year). [***] 

[***]
Confidential portions of this document have been redacted and filed separately with the Commission. 

4

 

 

[***] 

3.4   [***]  

[***]
Confidential portions of this document have been redacted and filed separately with the Commission. 

5

 

[***]

3.5   Pass Thru Fees  

        ACS will invoice Customer for all of ACS' actual out of pocket costs ("Reimbursable Costs") for stationery, envelopes, brochures and postage incurred in the
performance of its duties under this Agreement. 

3.6   Software Fees  

        All known software fees are included in the above Service fees mentioned in section 3.1. Should additional unforeseen software be identified as a
value-add, the parties will in good faith determine the additional fee and document as an amendment to this Task Order agreement. 

3.7   Invoice Audit Fees  

        In accordance with Section 18.3 of the Agreement, in the event such assistance requires a substantial level of resources at ACS and Customer decides to
proceed with the audit, such assistance shall be chargeable at the time and materials rates for the applicable ACS resources, 

3.8   Payment Terms  

        Fees will be payable by Customer to ACS within thirty (30) days of receipt of monthly invoice and in accordance with the invoicing terms contained in the
Agreement. 

 
 

  IV. Term and Termination    
    

4.1   Term  

        The term of this Task Order will begin on the Effective Date and will continue for a period of three (3) years (the "Initial Term"). Unless either Party gives
written notice of termination to the other at least [***] days before the scheduled expiration date, the term of this Task Order shall automatically be extended for successive
[***] periods thereafter, on the same terms and conditions unless the Parties mutually agree otherwise in writing (each a "Renewal Term"). 

[***]
Confidential portions of this document have been redacted and filed separately with the Commission. 

6

 

4.2   Termination for Convenience—Customer  

        Pursuant to Section 9.2 of the Agreement, if Customer terminates this Task Order for its convenience including diversion of Financial Aid Processing
Services and/or volume from ACS, Customer shall also pay ACS: 

	i.
	[***]
plus

	ii.
	An
early termination fee equal to the sum of the fees due ACS under this Task Order:

	a.
	Months 1 - 12 of the Initial
Term—[***]

	b.
	Months 13 - 24 of the Initial
Term—[***]

	c.
	Months 25 - 36 of the Initial
Term—[***]

	d.
	Renewal Term—[***] 

4.3   Termination for Convenience—Service Level  

        Pursuant to Section 9.2 of the Agreement, for substantial and material failure to meet the SLAs, termination shall be Customer's sole and exclusive remedy
for such failure(s) to meet the SLAs and ACS shall not be deemed in breach hereof or have any liability for damages to Customer in connection therewith. Substantial and material failure to meet the
SLAs will be considered to occur when (and only when) ACS has been suffering a fee reduction under Section 3.2 for at least [***] months and fails to correct such
failure(s) to meet the SLA(s) involved within thirty (30) days after written notice of termination, and such failure materially adversely affects Customer's administration of US Title IV
student assistance. In this event, Customer shall pay ACS a termination fee of [***]. There will be no early termination fee following the end of the Initial Term of this Task
Order. 

 
 

  V. The Services    
    

        The following information describes the detail functions the Parties will perform in delivery of the Services: 

5.1   Information Systems—Start Up  

							
	[***]

 
	 	[***] 	 	[***] 
	 Product Maintenance	 	 	 	 
	 CampusVue	 	 	 	 
	•	 	Install and maintain software	 	 	 	ü
	•	 	Customize current setup selections to enhance processing performance	 	 	 	ü
	•	 	Update software as new versions become available	 	 	 	ü
	 SFAonline	 	 	 	 
	•	 	Maintain web product	 	ü	 	 
	•	 	Update product on an "as-needed basis"	 	ü	 	 

[***]
Confidential portions of this document have been redacted and filed separately with the Commission. 

7

 

							
	[***]

 
	 	[***] 	 	[***] 
	
 Telecom	
 	

 	
 	

 
	•	 	Provide telephone equipment/service	 	ü	 	 
	•	 	Provide 800 lines for fax server and incoming SFAonline/Student Support Service calls	 	ü	 	 
	
 Client Connectivity	
 	

 	
 	

 
	•	 	ACS Login(s) to Client Systems	 	 	 	ü
	•	 	ACS User ID(s) for Client Systems	 	 	 	ü
	•	 	Help Desk Support	 	 	 	ü
	•	 	VPN	 	 	 	ü
	•	 	Installation of Client Software on ACS hardware	 	ü	 	 
	•	 	Connectivity Testing	 	ü	 	ü
	
Local IS Support	
 	

 	
 	

 
	•	 	Provide web support and development for communication of performance reporting	 	ü	 	 
	•	 	Provide LAN connection	 	ü	 	 
	•	 	Provide desktop PC support for ACS employees	 	ü	 	 
	•	 	Establish desktop PC hardware and software standards	 	ü	 	 
	•	 	Provide Workflow Tool maintenance	 	ü	 	 
	•	 	Provide Quality Review Tool maintenance	 	ü	 	 
	•	 	Provide full technical support for all ACS servers, databases and interfaces	 	ü	 	 
	•	 	Provide disaster recovery (backups, recovery) for data stored on ACS systems	 	ü	 	 
	•	 	Provide maintenance for ACS systems	 	ü	 	 
	•	 	Perform business analysis of data, software, and processes as required for business and operational challenges	 	ü	 	 
	•	 	Perform technical analysis of systems and infrastructure related to business and operational challenges	 	ü	 	 
	•	 	Administer CampusVue security classes and assignments	 	 	 	ü
	•	 	Administer SFAonline security classes and assignments	 	ü	 	ü
	•	 	Maintain ownership and maintenance of desktop PC's at ACS facility	 	ü	 	 

5.2   Support Services  

							
	[***]

 
	 	[***] 	 	[***] 
	 Reporting	 	 	 	 
	•	 	Perform monthly process performance reporting	 	ü	 	 
	•	 	Produce and distribute appropriate reports for the Joint Oversight Committee meetings	 	ü	 	 
	
Human Resources	
 	

 	
 	

 
	•	 	Monitor time reporting and attendance tracking of ACS Personnel in accordance with ACS policy	 	ü	 	 
	•	 	Manage hiring, on-boarding, career development, mentoring, retention and termination of ACS Personnel in accordance with ACS policy	 	ü	 	 
	
 Communications	
 	

 	
 	

 
	•	 	Manage internal and limited external communications, as mutually agreed	 	ü	 	 
	•	 	Develop signoff process for release of communications	 	ü	 	 
	
 Financial Analysis	
 	

 	
 	

 
	•	 	Provide financial analysis in conjunction with budgeting, planning and forecasting	 	ü	 	 
	•	 	Analyze the cost versus benefit of modifications to processes and technology	 	ü	 	 

[***]
Confidential portions of this document have been redacted and filed separately with the Commission. 

8

 

5.3   Financial Aid Processing  

							
	[***]

 
	 	[***] 	 	[***] 
	 Student Support Service / Customer Intake Support	 	 	 	 
	•	 	Contact students who have not initiated the SFAonline application process	 	ü	 	 
	•	 	Provide financial aid call center support to students using SFAonline: Monday through Friday, 8:00 am - 7:00 pm PT time	 	ü	 	 
	•	 	Answer BPE student financial aid questions in areas of intake, certification, disbursements and refunds (R2T4)	 	ü	 	 
	•	 	Respond to client student security access requests in relation to SFAonline	 	ü	 	 
	•	 	Respond to and resolve escalated hardware and interface issues associated with SFAonline	 	ü	 	 
	•	 	Handle escalated student calls. 	 	ü	 	ü
	
Processing/Revisions	
 	

 	
 	

 
	•	 	Collect documents necessary to determine whether the student is eligible to receive Title IV, HEA program funds	 	ü	 	 
	•	 	Follow up on any missing documents necessary to complete the financial aid process	 	ü	 	ü
	•	 	Review and evaluate completeness of documentation submitted by the student regarding eligibility for Title IV, HEA program funds in accordance with the HEA and any regulation prescribed under the HEA and Client's
policies	 	ü	 	 
	•	 	Provide entrance and exit interview and counseling materials, websites, etc. 	 	ü	 	 
	•	 	Package and certify financial aid files as complete (including the scheduling of disbursement dates) and perform all related system data entry	 	ü	 	 
	•	 	Issue award letter to student	 	 	 	ü
	•	 	Create and send Deny letter to any student whose file does not support the Eligibility Determination	 	ü	 	 
	•	 	Certify alternative loans	 	ü	 	 
	•	 	Revise student file as requested by Customer	 	ü	 	 
	•	 	Process the Inform, Monitor and Alert functions	 	ü	 	 
	•	 	Access NSLDS	 	ü	 	 
	•	 	Perform Pell reconciliation (excluding general ledger reconciliation) and reporting	 	 	 	ü
	•	 	Perform data entry, corrections and cleanup of data in reporting tools	 	ü	 	 
	•	 	Perform ISIR corrections, verification process and C-code resolution	 	ü	 	 
	•	 	Perform ISIR and ISIR corrections batch transmission between CPS and Client	 	 	 	ü
	•	 	Perform financial aid file storage (or record retention) in compliance with U.S. Department of Education regulations and Client policies for document storage and destruction	 	ü	 	 

5.4   Quality Assurance, Training, Regulatory Management  

							
	[***]

 
	 	[***] 	 	[***] 
	 Quality Assurance	 	 	 	 
	•	 	Develop and apply an agreed upon Quality Assurance Methodology	 	ü	 	 
	•	 	Develop a Quality Assurance Tool that will be a database for storing performance data supporting the Quality Assurance Methodology	 	ü	 	 
	•	 	Perform Quality Assurance Reporting, which will include development of a formal, multi-level reporting schedule tailored to the Quality Assurance Schedule	 	ü	 	 
	•	 	Coordinate internal training based on the results of Quality Assurance reviews	 	ü	 	 
	•	 	Reconcile ACS tracking tools to the appropriate systems and update data as needed	 	ü	 	 

[***]
Confidential portions of this document have been redacted and filed separately with the Commission. 

9

 

							
	[***]

 
	 	[***] 	 	[***] 
	
 Training	
 	

 	
 	

 
	•	 	Provide internal training on Title IV processes on an "as-needed basis"	 	ü	 	 
	
 Regulatory Management	
 	

 	
 	

 
	•	 	Assist in collecting data and providing preliminary review of responses to program reviews conducted by the U.S. Department of Education and other regulatory agencies as they relate to student financial aid services
provided in accordance with the Agreement, as mutually agreed	 	ü	 	 
	•	 	Prepare responses and submissions to applicable regulatory agencies	 	 	 	ü
	•	 	Assist in research and data collection for guarantee agency default appeals	 	 	 	ü
	•	 	Submit guarantee agency default appeal reports	 	 	 	ü
	•	 	Research data and provide the Client with information necessary to perform year-end Pell reconciliation	 	ü	 	 
	•	 	Facilitate collection of documents for SFA audit as requested by auditor as it relates to the Agreement	 	ü	 	 
	•	 	Facilitate collection of documents for SFA audit as requested by auditor as it relates to areas not associated with the Agreement	 	 	 	ü
	•	 	Submit SFA annual audit report to the U.S. Department of Education	 	 	 	ü
	•	 	Determine institutional, location, and program eligibility under the HEA and any regulations prescribed under the HEA and notify ACS of such eligibility	 	 	 	ü
	•	 	Manage internal policy development	 	 	 	ü
	•	 	Manage policy approval process	 	ü	 	ü
	•	 	Develop a U.S. Department of Education and other regulatory agency communication plan	 	 	 	ü
	•	 	Monitor new and pending legislation/regulations and adjust processes as required	 	ü	 	ü
	•	 	Direct coordination of legislative lobbying efforts	 	 	 	ü
	•	 	Create, manage, and perform a year round default management plan	 	 	 	ü
	•	 	SSCR Reporting	 	 	 	ü

5.5   Disbursement Eligibility Review  

							
	[***]

 
	 	[***] 	 	[***] 
	 Disbursement Eligibility Review	 	 	 	 
	•	 	Determine student eligibility for disbursement	 	ü	 	 
	•	 	Determine Satisfactory Academic Progress	 	 	 	ü
	•	 	Reissue/Cancel funds as necessary	 	ü	 	 
	•	 	Authorize funds to be disbursed to student account	 	 	 	ü
	•	 	Provide accounting office with disbursement rosters	 	 	 	ü
	•	 	Post funds to student account	 	 	 	ü
	•	 	Issue receipt to student with required compliance language	 	 	 	ü
	•	 	Identify and apply payments to charges in accounting system	 	 	 	ü
	•	 	Determine credit balance on student account; issue check to student	 	 	 	ü
	•	 	Reconcile EFT account	 	 	 	ü
	•	 	Request Pell funds from US Department of Education/GAPS account	 	 	 	ü
	•	 	Create Pell origination and disbursement records	 	ü	 	 
	•	 	Submit Pell origination and disbursement records to CPS	 	 	 	ü
	•	 	Create and submit loan origination and disbursement records	 	ü	 	 
	•	 	Reconcile Pell between general ledger and GAPS	 	 	 	ü
	•	 	Maintain financial aid subsidiary ledgers	 	 	 	ü
	•	 	Assist in closing out Pell award year	 	ü	 	 

[***]
Confidential portions of this document have been redacted and filed separately with the Commission. 

10

 

5.6   Title IV Refund Processing  

							
	[***]

 
	 	[***] 	 	[***] 
	•	 	Manage federal refund processing for financial aid students	 	ü	 	 
	•	 	Manage state and institutional refund processing for financial aid students	 	 	 	ü
	•	 	Create exit report that identifies students who are no longer attending the University	 	 	 	ü
	•	 	Exit Report Processing: includes determination of refund or post-withdrawal disbursement, calculation of institutional, state and federal refund and/or repayment, documentation of refund or non-requirement, student and
lender notification, exit interview notification, and debit memo requests	 	ü	 	 
	•	 	Coordinate Refund File Flow	 	ü	 	 
	•	 	Request refunds to appropriate funding program / agency	 	 	 	ü
	•	 	Update appropriate systems with refund information	 	ü	 	 
	•	 	Report on quality of refund process	 	ü	 	 

5.7   Service Level Agreements (SLA)  

        ACS will provide the above Services for Customer's complete financial aid student population based upon the following baseline service expectations: 

[***]

[***]
Confidential portions of this document have been redacted and filed separately with the Commission. 

11

 

[***] 

 
 

  VI. Hiring, Training, Compliance and Quality Assurance    
    

6.1   Hiring  

        ACS will staff with internal candidates and public candidates as available. If additional staff is needed, ACS may utilize the assistance of a preferred staffing
agency if direct recruiting efforts are not successful. 

        ACS
will assess candidates' abilities through a series of skills tests prior to interviewing. ACS will make hiring recommendations based on a candidate's professional experience,
customer service experience, financial aid knowledge, interview, skills tests results and criminal background check. 

6.2   Training  

        The ACS Training team will develop and deliver initial and refresher training modules in support of the Services. The Customer may be requested to participate in
the development and delivery of the ACS training. 

        ACS
will establish the required quality and production requirements for graduation from training. ACS will perform compliance and process adherence review for 100% of all files produced
during the training period. ACS employees must meet quality and production requirements to graduate from training and move into production. 

        ACS
will participate in training as required by Customer from time to time. The reasonable costs of such participation by ACS will be borne by Customer. 

6.3   Quality Assurance  

        ACS will perform Quality Assurance of employees based upon compliance and procedure and will share reports that summarize the monthly quality and the actions
taken to raise quality (if appropriate). ACS will also work with Customer to calibrate call center quality scoring. 

[***]
Confidential portions of this document have been redacted and filed separately with the Commission. 

12

 
 
 

  VII. Customer Management    
    

7.1   Customer Management  

        ACS is dedicated to developing and managing quality operations in partnership with its Customers. ACS will assign a Customer Relations Manager (CRM) to manage the
ACS—Customer relationship. The CRM will act as the liaison between Customer and ACS and work in partnership to meet SLAs, understand Customer vision and objectives, incorporate any new
policy or procedural changes required or requested, and continually seek to extend creative solutions to address Customer's business challenges. To regularly review these objectives the CRM will meet
with Customer and discuss topics including but not limited to: 

	•
	Adherence to agreed upon SLAs  
	•
	Adherence to implemented process  
	•
	Customer satisfaction  
	•
	Customer vision and upcoming events or challenges  
	•
	Need for process change or improvement

	•
	Project plan for implementing change or improvements  
	•
	
Need for change order requests/amendments to agreed upon task order 

7.2   Continuous Improvement  

        ACS will actively seek ways to enhance the process to improve effectiveness, efficiencies and quality. As desirable Service modifications and enhancements are
identified, ACS or Customer may propose modifications to the project to change or enhance functionality. To maintain consistency, requests for modification will follow an established change control
process as identified in Section 15 of the Agreement. 

 
 

  VIII. Supporting Documents    
    

8.1   TO1 Volume Expectations—Ashford University  

8.2   TO1 Change Order Request Addendum  

[Signature
page to follow on next page.] 

13

 

 
 

  IX. Signatures    
    

        Except as expressly amended hereby, the terms and provisions of the Agreement are hereby ratified and confirmed as originally written
and shall be legally binding between the Parties with respect to all services provided under the Agreement, as amended hereby. 

        IN
WITNESS WHEREOF, each of the parties has executed this Task Order One (1) by the signatures of their respective authorized representatives. 

								
	 	ACCEPTED AND AGREED:	 	ACCEPTED AND AGREED:
	 	 	 	 	 	 	 	 
	 	Affiliated Computer Services, Inc.	 	Ashford University, LLC
	 	 	 	 	 	 	 	 
	 	By:	 	/s/ KENT SCHNACKER

 	 	By:	 	/s/ JANE MCAULIFFE  

 
	 	 	 	 	 	 	 	 
	 	Name:	 	Kent Schnacker

 	 	Name:	 	Jane McAuliffe

 
	 	 	 	 	 	 	 	 
	 	Title:	 	Senior Managing Director

 	 	Title:	 	CEO

 
	 	 	 	 	 	 	 	 
	 	Date:	 	  

 	 	Date:	 	12-31-08

 

14

 

 8.1 TO1 Volume Assumptions—Ashford University  

	•
	Customer Delivered Enrollment Projections for 2009 - 2011 for Ashford University: 

																																															
	AU Budget

 
	 	January 	 	February 	 	March 	 	April 	 	May 	 	June 	 	July 	 	August 	 	September 	 	October 	 	November 	 	December 	 	2009 	 	2010 	 	2011 	 
	 [***]
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 

	•
	Historical assumptions: 
	•
	Percentage of FA Students is [***]  

	•
	Volume of SFAonline entrants is [***] of the FA Starts (Gross) volume   

	•
	SFAonline entrants for 2008 will be [***]  

	•
	Renewal certifications for 2008 will be [***]  

	•
	Volume of Inbound Calls is [***] per SFAonline entrant   

	•
	Volume of Outbound Accounts Worked is [***] per Core Doc Completer and Renewal Certification  

	•
	Volume of Emails is [***] per SFAonline entrant   

	•
	Volume of Core Doc Completers is [***] of SFAonline entrants   

	•
	Volume of Images is [***] per Core Doc Completer and Renewal Certification  

	•
	Volume of ISIR Review is the volume of Core Doc Completers plus Renewal Certification   

	•
	Volume of New Student Certifications is [***] of the Core Doc completers (or
[***] of SFAonline entrants)   

	•
	Volume of Renewal Certifications is [***] of the monthly FA Beginning Enrolled Student
volume (or [***] of the Yearly FA Ending Enrolled Student volume)   

	•
	Volume of Revision Certifications is [***] of the New Certifications plus
[***] of the Renewal Certifications plus the Re-Enter Student population ([***] of the FA Ending Enrolled Student volume)  

	•
	Volume of Disbursement Review is [***] disbursements per New, Renewal and Revision Certification
minus [***] for each dropped student   

	•
	Volume of R2T4 (Refund) Calculations is [***] of New and Renewal Certifications 

[***]
Confidential portions of this document have been redacted and filed separately with the Commission. 

1

 

	•
	Derived volume expectations based on Customer delivered enrollment projections and historical assumptions: 

																																															
	Service Categories

 
	 	January 	 	February 	 	March 	 	April 	 	May 	 	June 	 	July 	 	August 	 	September 	 	October 	 	November 	 	December 	 	2009 	 	2010 	 	2011 	 
	 [***]
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 

[***] Confidential portions of this document have been redacted and filed separately with the Commission. 

2

 

   8.2 TO1 Change Order Request Addendum  

        ACS understands that changes to established business processes may become required. A structured Change Management process ensures that
standardized methods and procedures are used to handle all Changes in Scope, as referenced in Section 15 of the Agreement. A change request can be initiated through a request from the Customer
or from internal ACS sources. 

        All
proposed changes or additions to current services or processes must be submitted to the ACS in writing. The request for change should include: 

	•
	Detailed description   

	•
	Reason/Objective   

	•
	Desired outcome/benefit   

	•
	Associated risk for not implementing the requested change   

	•
	Desired implementation date 

1

 

 
 

  Addendum One (1) to Task Order One (1)
  Centralized Financial Aid Processing
  Affiliated Computer Services, Inc. and Ashford University, LLC    
    

        This Addendum One (1) (the "Addendum") is made effective as of December 31, 2008 as an Addendum to Task Order One
(1) ("TO1") dated as of December 31, 2008 and issued pursuant to the General Services Agreement (the "Agreement") dated December 31, 2008 by and between Affiliated Computer
Services, Inc. ("ACS") and Ashford University, LLC ("Customer"). 

        Prior
to the execution of TO1 and the Agreement, on December 11, 2008, ACS [***]. TO1 inadvertently did not document this mutually and previously agreed
upon [***]. 

        By
executing this Addendum to TO1, ACS agrees to [***]. 

        Except
as expressly amended hereby, the terms and provisions of the Agreement are hereby ratified and confirmed as originally written and shall be legally binding between the Parties
with respect to all services provided under the Agreement, as amended hereby. 

        IN
WITNESS WHEREOF, each of the parties has executed this Addendum One (1) by the signatures of their respective authorized representatives. 

								
	 	ACCEPTED AND AGREED:	 	ACCEPTED AND AGREED:
	 	 	 	 	 	 	 	 
	 	Affiliated Computer Services, Inc.	 	Ashford University, LLC
	 	 	 	 	 	 	 	 
	 	By:	 	/s/ KENT SCHNACKER

 	 	By:	 	/s/ DANIEL J. DEVINE  

 
	 	 	 	 	 	 	 	 
	 	Name:	 	Kent Schnacker	 	Name:	 	Daniel J. Devine
	 	 	 	 	 	 	 	 
	 	Title:	 	Senior Managing Director	 	Title:	 	CFO
	 	 	 	 	 	 	 	 
	 	Date:	 	  

 	 	Date:	 	January 12, 2009

[***]
Confidential portions of this document have been redacted and filed separately with the Commission. 

QuickLinks

Exhibit 10.22

GENERAL SERVICES AGREEMENT BETWEEN AFFILIATED COMPUTER SERVICES, INC. AND ASHFORD UNIVERSITY, LLC JANUARY 1, 2009

GENERAL SERVICES AGREEMENT

Task Order One(1) Centralized Financial Aid Processing Affiliated Computer Services, Inc. and Ashford University, LLC

I. The Service

II. Scope of Service

III. Fees

IV. Term and Termination

V. The Services

VI. Hiring, Training, Compliance and Quality Assurance

VII. Customer Management

VIII. Supporting Documents

IX. Signatures

Addendum One (1) to Task Order One (1) Centralized Financial Aid Processing Affiliated Computer Services, Inc. and Ashford University, LLC

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